BRIEFING BY ENTITIES ON 2015/16 STRATEGIC AND ANNUAL PERFORMANCE PLANS 2015/16 PORTFOLIO COMMITTEE ON TRANSPORT 2ND TERM PROGRAMME

Transcription

1 BRIEFING BY ENTITIES ON 2015/16 STRATEGIC AND ANNUAL PERFORMANCE PLANS 2015/16 PORTFOLIO COMMITTEE ON TRANSPORT 2ND TERM PROGRAMME 14 April 2015

2 TABLE OF CONTENT ATNS MANDATE ATNS STRATEGY ANNUAL PERFORMANCE ATNS CORE PROGRAMMES 2015/16 FINANCIAL PLAN

3 ATNS MANDATE

4 ATNS MANDATE ATNS was incorporated in 1993 in terms of ATNS Company Act, Act 45 of The Act mandates ATNS to provide Air Traffic Management Solutions and associated services on behalf of the State in accordance with ICAO Standards, recommended practice as well as the South African Regulations and Technical Standards.

5 AREAS OF RESPONSIBILITY

6 AREAS OF RESPONSIBILITY ATNS is responsible for air traffic control in approximately 10% of the world s airspace.

7 CIVIL AVIATION REGULATORY & DELIVERY CONTEXT

8 ATNS STRATEGY

9 ATNS STRATEGIC PROFILE 2015/16 STRATEGIC PROFILE

10 ATNS STRATEGY ATNS Strategy is influenced and linked to industry planning initiatives and governmental expectations. ATNS has an outward, market-driven strategy focus ATNS adopts a critical thinking process in formulating the strategy that includes steps which eventually bring to the surface the Critical Issues that management will address and resolve over a defined period of time with the aim to achieve the desired profile.

11 ATNS STRATEGY These Critical issues are the bridge between the current profile and the future strategic profile of ATNS. Reviewed annually for implementation success with new critical issues developed in order to achieve outcome-oriented goals.

12 STRATEGIC THINKING PROCESS

13 ATNS STRATEGY OUR VISION OUR MISSION To be the preferred supplier of air traffic management solutions and associated services to the African continent and selected international markets To provide safe, expeditious and efficient air traffic management solutions

14 ATNS STRATEGY OUR VALUES Safety Accountability Customer Satisfaction Fairness & consistency Continuous Improvement & Innovation Open and effective communication Employee engagement and development

15 ATNS STRATEGIC IMPERATIVES Represent ATNS broad-based strategic outcomes that the company wishes to achieve as a result of its existence and objectives. Deliver continuous improvement of our safety performance Become a transformative organisation that invests in its people Provide efficient air traffic management solutions and associated services that meet the needs and expectations of the ATM community Maintain long-term financial sustainability Play a leading role in the deployment of air traffic management in Africa and selected international markets Deploy and use leading technologies to the benefit of the ATM community

16 ATNS STRATEGY LINKAGE NATIONAL DEVELOPMENT PLAN DOT GOVERNMENTAL OUTCOME ATNS STRATEGIC IMPERATIVES Establish effective, safe and affordable Public transport Establish a competitive base of infrastructure, human resources and regulatory frameworks A transport sector that is safe An efficient and integrated transport infrastructure network for social and economic development Deliver continuous improvement of our safety performance Maintain long-term financial sustainability Provide efficient air traffic management solutions and associated services that meet the needs and expectations of the ATM community

17 ATNS STRATEGY LINKAGE NATIONAL DEVELOPMENT PLAN DOT GOVERNMENTAL OUTCOME ATNS STRATEGIC IMPERATIVES Produce sufficient energy to support industry at competitive prices, ensuring access for poor households, while reducing carbon emissions per unit of power by about onethird An increased contribution of transport to environmental sustainability Deploy and use leading technologies to the benefit of the ATM community Play a leading role in the deployment of air traffic management in Africa and selected international markets Increase employment from 13 million in 2010 to 24 million in Ensure that skilled, technical, professional and managerial posts better reflect the country's racial, gender and disability makeup An increased contribution to job creation Become a transformative organisation that invests in its people

18 ATNS BUSINESS CONCEPT NO. DESCRIPTION 1. Our strategy will be to focus on the ATM needs and expectations of the ATM community, primarily in South Africa, with a greater emphasis on the rest of Africa and other selected global markets. 2. We will develop a thorough understanding of the global ATM community with emphasis on product and service offerings, technology developments and clients in order to effectively respond to the needs and expectations of our selected markets with innovative and relevant ATM solutions and associated services. 3. We will source, develop, market, distribute and support a complete range of ATM solutions and associated services that meet the needs and expectations of access, equity, safety, security, efficiency, predictability, environmental sustainability and affordability, thereby supporting our clients and the ATM community at large.

19 ATNS BUSINESS CONCEPT NO. DESCRIPTION 4. It is an imperative that we continue to enhance our ATM solutions and associated service provision in South Africa, in order to maintain a platform from which we can develop and leverage strategic partnerships, our global influence as well as harmonised technologies and methods, to become the leading ATM provider in Africa, to secure our future growth, revenue, profit and relevance as a provider of choice. 5. We will expedite our expansion into the rest of Africa and other selected global markets, through a focused business approach, whilst expanding our range of services in ATM that are appropriate for market needs and expectations.

20 ATNS BUSINESS CONCEPT NO. DESCRIPTION 6. Our business model will be supported through attracting, developing, retaining and appropriately rewarding a diverse and motivated team, that has the right skills, experience, commitment and drive to implement this strategy, creating winwin solutions. 7. The effective implementation of this strategy will ensure a well-equipped resource base, responsible governance, industry transformation, enhanced sustainability and support the global ATM system.

21 AREAS OF EXCELLENCE #1 BUSINESS INTELLIGENCE We must excel at ensuring that we have strategic far-sightedness, detailed insight and understanding of global market dynamics, and readily available information on technological and business trends, suppliers, products, clients and competitors.

22 AREAS OF EXCELLENCE #2 MARKET EXCELLENCE We must excel at obtaining, developing, retaining and utilising specialist resources, capabilities and technology to formulate and provide air traffic management solutions and associated services, to ensure that they are innovative, of high quality, reliable and affordable, whilst ensuring that our operations across the entire business are reliable, consistent, efficient, timeous, sustainable and cost effective, in order to exceed client performance levels in accordance with requirements as the provider of choice.

23 AREAS OF EXCELLENCE #3 RELATIONSHIP MANAGEMENT We must excel at building lasting relationships with our people, communities, government and other strategic partners suppliers, clients and the ATM Community - that are built on trust, are flexible, relevant, supportive, robust and are conducive to creating win-win situations.

24 ATNS CRITICAL ISSUES 2015/16 1. Build a trusting relationship with employees by living the values 2. Review and implement a revised structure to implement the ATNS strategy (regulated & non-regulated) 3. Develop and resource a business intelligence function (including market intelligence) 4. Develop and implement a funding and delivery model for the acceleration of the nonregulated business 5. Develop and implement a performance management mechanism to monitor the implementation of the strategy 6. Develop and implement a talent management plan (including succession planning) 7. Investigate, develop and provide a 3rd party funding solution plan by country

25 ANNUAL PERFORMANCE

26 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 1. TRANSPORT SAFETY AND SECURITY 1.2 Safety service provision Reduce the ATNS safety events rate Number of safety events per air traffic movements. Inclusive of all movements. 2.0 safety events per air traffic movements 2.0 safety events per air traffic movements 1.2 Safety service provision Increase the successful safe operation. Providing successful safe operation and application of separation standards based on IFR flight hours to equate to % and an error margin of 0.005%. N/A % successful safe operation and an error margin of 0.005%. 1.3 Operational Efficiency Reduce overall traffic delays Average delay per delayed flight. 120 sec 120 sec

27 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 1. TRANSPORT SAFETY AND SECURITY 1.4 Operational Efficiency Achievement of CNS Systems Availability Average CNS Systems Availability C: 99.67% N: 98.65% S: 99.77% C: 99.67% N: 98.65% S: 99.77% 1.5 Ensure commercial sustainability Ensure financial sustainability Meeting financial target as per Budget. D/E =25% C/A =3.65 ROCE =11.2% D/E =10-45% C/A =2.5:1 ROCE =12.6%

28 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 1. TRANSPORT SAFETY AND SECURITY 1.6 Performancebased navigation (PBN) ACSA Airports Implement ICAO PBN concept in South Africa. Near-term implementation targets in line with South African PBN Roadmap. 7 Design Reports for submission to SACAA (RNP APCH) RNP APCH (Baro-VNAV where operational benefits can be gained) in 50% of instrument runways Achieved 55.5% 5 of the 9 ACSA airport have RNP APCH s RNP APCH in 100% of instrument runways located at ACSA airports by 31 March Design Reports for submission to SACAA (RNAV 1 and 2 SID/STAR) RNAV 1 and 2 SID/STAR for 50% of International airports. Achieved 50% 3 of the 6 International ACSA Airports are serviced RNAV 1 / 2 SID/STAR RNAV 1 and 2 SID/STAR for 5 (or 80%) international airports (ACSAowned) by 31 March 2016

29 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 1. TRANSPORT SAFETY AND SECURITY 1.6 (b) Performancebased navigation (PBN) Non-ACSA Airports Implement ICAO PBN concept in South Africa. Near-term implementation targets in line with South African PBN Roadmap. 9 Design Reports for submission to SACAA (RNP APCH) N/A 100% of contracted designs..

30 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 2. INFRASTRUCTURE DEVELOPMENT AND HIGH-LEVEL INVESTMENT PLAN FOR TRANSPORT 2.1 Development of optimized and efficient aviation infrastructure in a cost-effective manner. Adoption and approval of CAPEX Implementation of CAPEX 2015/16 Strategic plan Roadmap Operational plan Compliance with the acquisition and implementation of milestones of the CAPEX plan. R151m R242m

31 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 2. INFRASTRUCTURE DEVELOPMENT AND HIGH-LEVEL INVESTMENT PLAN FOR TRANSPORT 2.2 Operation of the satellite communication networks SADC VSAT 2 Optimize revenue and ensure network availability. Achievement of the revenue and network availability as per SLA targets. SLA 98.5% Revenue R26.5m SLA 98.5% Revenue - R26.8m 2.3 Operation of the satellite communication networks NAFISAT Optimize revenue and ensure network availability. Achievement of the revenue and network availability as per SLA targets. SLA 98.5% Revenue R26.1m SLA 98.5% R 26.4m

32 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 3. THE FIGHT AGAINST FRAUD AND CORRUPTION 3.1 Comply with relevant legislation, regulation and standards. 100% compliance Reports with no material findings from auditors. Sound internal control systems. Unqualified audit report. Zero material noncompliance findings. Unqualified audit report to be achieved for 2014/2015. Zero material noncompliance findings 3.2 Fraud and whistleblowing policy Fighting corruption and promoting good governance. Matters investigated as per policy timelines. Resolution of all matters raised within 90 days. Resolution of matters reported through the Whistle Blowing within 90 days.

33 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 4. ENVIRONMENTAL PROTECTION 4.1 Implementation of environmental plan. Measure ATNS Carbon footprint ATNS 2014/15 Carbon footprint inventory report Calculate ATNS Carbon Footprint Inventory for 2012/13 FY. Calculate and report on ATNS Carbon Footprint 2015/16 quarterly Human resources/training Performance assessment Trained ATNS employees on Sustainability and climate change matters. Environmental performance assessments S & CC Awareness training programme for ATNS employees Environmental Assessment Report Deliver Environmental awareness training to 50% of ATNS employees Environmental Assessment Report ( 1 Annual Report at yearend)

34 DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16 Item no. Business objectives Objective measures 5. TRAINING TO CONTRIBUTE TO JOB CREATION Annual performance indicators Targets as at 2014/15 Targets 2015/ Address societal challenges, thereby building a meaningful legacy for ATNS and the communities in which we operate. ATS bursaries and engineering learnerships. Trained ATS and engineering learnerships. ATS - 60 Engineers Learnership 5 ETS GEDP 6 ATS - 60 Engineering Learnership 6 ETS GEDP 10 Unemployed Graduates 6 Unemployed Graduates 5

35 ATNS STRATEGY Item no. Business objectives Objective measures Annual performance indicators 5. TRAINING TO CONTRIBUTE TO JOB CREATION Targets as at 2014/15 Targets 2015/ Manage the training pipeline for ATS and technical staff. Adoption and approval of HC plan as per budget. ATS and TS training plan. Operational or implementation plan. Achievement of the numbers as per budget. Adoption and approval of training plan. Compliance with the milestones of the plans. ATCO ATCO 2 37 ATCO Eng. Technicians 74 ATCO ATCO 2 37 ATCO Eng. Technicians 74 Eng. Satellite Technicians - 5 Eng. Satellite Technicians 5

36 ATNS STRATEGY Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 5. TRAINING TO CONTRIBUTE TO JOB CREATION 5.3 Review and implement the HR plan to recruit, develop, retain, and reward employees across all disciplines. Development programmes for employees, with emphasis on AIC and women. Training investment as percentage of a salary bill. 3% Rand value of salary bill 3% Rand value of salary bill

37 ATNS STRATEGY Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 6. BROAD-BASED BLACK ECONOMIC EMPOWERMENT 6.1 Achieve BBBEE targets. Achieve preferential procurement targets as set by the Transport Charter. Percentage of discretionary spend on BBBEE. Total discretionary OPEX budgeted. Total CAPEX budgeted. Achievement of BBBEE targets as per the Transport Charter. BBBEE level 3 OPEX spend 65%, CAPEX spend 45%. Obtain the first BBBEE rating. BBBEE level 3

38 ATNS STRATEGY Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 7. EMPLOYMENT EQUITY 7.1 ATS EE targets( AIMO, ATSO, ATCO 1-3) Achieve representation towards alignment of company staff profile with the demographics of the country. 1% increase : 2015/2016 AIC Target Retain 2014/15 ATS AIC Female Target Achieve a target of 57% ATS AIC. Achieve a female target of 40% ATS. Achieve a target of 58% ATS AIC. Achieve a female target of 40% ATS

39 ATNS STRATEGY Item no. Business objectives Objective measures Annual performance indicators Targets as at 2014/15 Targets 2015/16 7. BROAD-BASED BLACK ECONOMIC EMPOWERMENT 7.2 ATNS EE targets Increase representation of black (AIC) racial grouping with a particular focus on African and female representation towards creating alignment with the demographics of the country. 3% increase year on year AIC (based on YTD) Retain 2014/15 AIC Female target (based on YTD) Achieve a target 70% AIC. Achieve a company target of 46% female representation. Achieve a target 72% AIC Achieve a company target of 46% female Retain 2014/15 target people with disabilities (based on YTD) Achieve a company target of 3.5% for people with disabilities. Achieve a company target of 3.5% for people with disabilities.

40 ATNS CORE PROGRAMMES 2015/16

41 ATNS CORE PROGRAMMES 2015/16 PROGRAMME 1: The ATNS ATM Roadmap ASBU Supports ATNS strategic plan for implementing the ATM/CNS systems required for meeting user expectations going forward. PROGRAMME 2: NEWCO Programme An opportunity for the non-regulated business to continue expansion into the region through a subsidiary vehicle. PROGRAMME 3: Business Processes a project to provide a representation of the organization and its operational model in a visual manner, in order to enable a unified organization understanding, operational standardization and the capturing of corporate memory.

42 ATNS CORE PROGRAMMES 2015/16 PROGRAMME 4: IT Repositioning A follow-on programme from the 2010 IT Business enablement roadmap to enhance IT governance and achieve new business integration as well as creation of new IT functions. PROGRAMME 5: Training Model Review An initiative to review current training model in order to optimise the Aviation Training Academy s operations. PROGRAMME 6: Remote Service Provision A programme to enable aerodrome control services to be provided in an airport from a location away from the said airport.

43 2015/16 FINANCIAL PLAN

44 KEY ASSUMPTIONS DESCRIPTION PROJECTIONS BER CPI % Stats SA CPI 2 6.3% Tariff Increase 3 0.8% Salary Increase 4 7.7% Tax Rate 28% USD Euro Bureau of Economic Research (July 2014). Stats SA (July 2014). Used to inflate the salaries cost; Final Permission. Used to increase the tariff; Salary Increase( Stats SA CPI+1)

45 SUMMARIZED FINANCIAL RESULTS Description 2013/14 Actual 2014/15 Forecast 2015/16 Budget Tariff Revenue Other Revenue Total Revenue Total Expenditure EBITDA Profit before Tax Profit after Tax ROCE 23.6% 16.8% 10.9%

46 CONSOLIDATED BALANCE SHEET Details 2013/14 Actual 2014/15 Forecast 2015/16 Budget Total Assets Total Liabilities Total Equity

47 TARIFF INCREASES Description Actual 2013/14 Budget 2014/15 Projection 2015/16 Projection 2016/17 Projection 2017/18 Traffic Movement Growth -1.9% -2.4% 1.6% 1.8% 2.0% Tariff Increase 5.5% 5.6% 0.8% 1.7% 6.3%

48 ROCE

49 DEBT EQUITY RATIO

50 CURRENT RATIO

51 INTEREST COVER

52 CAPEX

53 ATNS CAPITAL EXPENDITURE PLANS Description 2015/ / /18 Communications Display Systems General Items General: Buildings General: Computer equipment General: Elect&Mech equipment General: Office furniture and fittings General: test equipment General: Tools Navigation Software Surveillance Total

54 Contact us ATNS HEAD OFFICE Postal address Private Bag X15 Kempton Park 1620 Street address Block C, Eastgate Office Park South Boulevard Road Bruma 2198 Gauteng Republic of South Africa Thank you Contact details Tel: Fax: Website: