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This overview highlights the achievements and progress made in the transformation of the company from 2006 to 2010. It includes the establishment of transformation committees, climate survey index results, B-BBEE achievements, and program management challenges and achievements. The A-Darter program, an international partnership with Brazil, is also discussed, highlighting its contribution to South Africa's engineering sector and the economy.
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TRANSFORMATION Overview and Achievements 2006 – 2010
TRANSFORMATION ACHIEVEMENTS TO DATE • Transformation Committees in place and functional. • Climate Survey Index: 2006 (43%) and 2008 (50%): Benchmark 60%. • B-BBEE target Level 5: Achieved Level 4 in 2009/10. • BBBEE spend from total Procurement spend: B-BBEE independently assessed by EmpowerLogic
THE CHALLENGE OF DEFENCE PROGRAMMES Leading-edge technology integration a prerequisite to deliver competitive products High investment in human capital development and equipment essential With declining defence budgets volume sales not available Most contracts on Denel for technology and product development, resulting in lower margins and mostly requiring own investment before serial production status is attained International economic downturn has resulted in overcapacity and growing competition in our traditional markets Clients now demand service providers to carry programme risk
91,5% cash flow on DOD contracts majority of orders of a developmental nature (85% international benchmark) A-Darter development and Gripen integration milestones On-time delivery of Badger new-generation infantry combat vehicle Section Variant milestone Rooivalk certification completed DoD requiring delivery of an initial operational capability by April 2011 DSA Special Processes accredited to international standards Seeker 2 export contract completed ahead of schedule Virtual flawless munitions and pyrotechnic deliveries to local and international client base STRIVING FOR OPERATIONAL EXCELLENCE : ACHIEVEMENTS
OVERVIEW OF THE INTERNATIONAL PARTNERSHIP • A-Darter is a Bi-National project which supports the government’s objectives of closer ties with Brazil • The Brazilian Air Force invested 50% of the funding at the start of the programme – without this funding it would not have been possible to develop the missile • Technology transfer has been part of the package and has been highly successful, paving the way for future similar contracts • Brazil and South Africa both benefit from the world class technology embedded in the fifth generation missile capability • Both countries will have a first class capability to effectively protect their air-space
A-DARTER PROGRAMME CONTRIBUTION FOR SOUTH AFRICA Provides international credibility in a highly competitive environment Ensures valuable engineering skills development and retention in South Africa Provides challenging career opportunities for young people to grow in programme management and systems engineering disciplines Raises the level of the electronics and mechanical engineering sector in South Africa Creates sustainability (future production contracts) for Denel and local industry Creates jobs in the South African economy
A-Darter Program: First Successful Launch Firing from SAAF Gripen at Overberg Test Range
10 SEPARATION 117 JUNE 2010
