GOVERNMENT PRINTING WORKS

1. GOVERNMENT PRINTING WORKS Building a New Government Printing Works PRESENTATION TO PORTFOLIO COMMITTEE STRATEGIC PLAN 2010/11 – 2012/13 9 March 2010

2. AGENDA • Background • Mandate and Overview • Strategic Outlook • Key Strategic Objectives • Strategic Implementation Plan • Progress with Key Projects • Funding Requirements • Summary and Closing Remarks

3. The objective of our presentation is as follows... • Provide the Portfolio Committee with a high level Mandate and Overview of the GPW and also give the Committee an insight into the progress and developments at GPW for the 2010/11 financial year and beyond. • Provide insight into the key priorities going forward. • Provide an update on the major successes achieved. • Challenges with regards to transformation and modernization GPW is pivotal to the turnaround of DHA in the delivery of efficient and effective services to ALL South African’s on documents which confer citizenship

4. Overview and Mandate of the Government Printing Works (GPW) • This strategic plan focuses on specific processes: • Where the organisation wants to be in the medium – long term • Critical assessments of its current status • Set measurable targets • Operating Model • The GPW has been converted into a Government Component (GC) • Implement sound financial management (profitable and viable) while cultivating a commercial oriented culture. • Focus on its core business – security printing

5. STRATEGIC OUTLOOK OF THE GPW • Vision • To be be State’s Mandate Security Printer • Mission • To provide cost effective, reliable and timeous services to all spheres of Government in security printing • To provide the public with equitable information • To disseminate Government information through technology, innovation and service excellence • Values • Reliability • Integrity • Accuracy • Stakeholder satisfaction These belief systems motivate our people to provide excellent service to all our stakeholders.

6. KEY STRATEGIC OBJECTIVES • Conversion into a Government Component GC • Creates a conducive operational framework for growth • Production Process Optimisation • Develop appropriate facilities for efficient and cost competitive production • Technological Migration • Acquisition of new equipment, systems and technology • Marketing • Consolidation of business opportunities and customer focus • Financial management • Strong balance sheet of a financially viable entity These objectives are the bedrock of a sustainable GPW which will ensure organic growth and financially vibrant organisation.

7. Strategic Implementation Plan (1/4) • Financial Management • Accurate planning and forecasting • Maintain optimal cash flows and working capital • Manage financial risks • Implementation of new ERP System • Reduce AG findings and qualifications • Cost Management • Change/review the cost/product pricing system/strategy • Reduction in wastage and spoilage • Operations Management • Replacement of outdated technology and machinery • Optimisation of production capacity and efficiencies – cost competitive • High quality security products • Achieve product/service excellence

8. Strategic Implementation Plan (2/4) • ICT Management • Master System Plan and ICT strategy • Develop Disaster Recovery Plan • Ensure compliance testing for all new initiatives • Review and update policies • Upgrade and integration of ICT systems for printing environment • Supply Chain Management • Reduce Stock Levels • Phase out slow moving items and redundant stocks • Strategic supplier management • Update and develop electronic suppliers database and order information • Contract and SLA management

9. Strategic Implementation Plan (3/4) • HR, Strategy and Transformation • Develop and Implement Human Capital Strategy • Policy Development and Strategy alignment • Align HRM Practices and Strategies • IPC in place • Trained, skilled and service oriented staff in place • Security • Security risk assessment • New and updated physical, personnel, production and documentation security systems in place • Introduce vetting system for key personnel

10. Strategic Implementation Plan (4/4) • Internal Audit • Development of internal audit and risk management plans • Monitor compliance with PFMA and related regulations • Marketing • Develop GPW Brand • Local Customer Retention • Local Business Development • Develop an aggressive regional marketing strategy on face value documents The conversion of GPW into a GC will allow the transformation process and turnaround of GPW in the MTEF period

11. KEY PROJECTS • Installation and commissioning of new security printing division • Crew members certificates for SAA • Accreditation cards for Diplomats • Vehicle Testing Certificates – Mozambique • Implementation of new ERP system • Development of new facility

12. Finally, the transformation and modernisation will require additional capital injection by the State to ensure conversion and success of GPW Pavilion 2 is currently in the process of renovation. Process has started to draw the master-plan for the total facility before more development is done.

13. The critical equipment that needs to be procured as part of the asset replacement program, includes the following:

14. In order to ensure growth and a financially viable organisation, GPW needs to replace it’s fragmented IT systems : • RFI • 18 responses received, 6 shortlisted • Contract was awarded in December 2009. • ERP software solutions • Hiflex – Production System • Microsoft Dynamics AX – Financial • Microsoft Sharepoint • Intranet & Internet • Solution Demonstrations • Visited Intervate and Hiflex (Germany) in order to assess systems capabilities. • Project Approach • Phase 1 – Analysis • Phase 2 - Implementation

15. Income estimates are summarised as follows

16. Expenditure estimates are summarised as follows

17. There challenges ahead but hope that this presentation highlights the support/resources required from Government at this critical juncture • We urge you to please provide us with the necessary advise and support during the transformation process • Critically evaluate our plans going forward • Support us by ensuring that the requisite funds are forthcoming, as this is always key to any turnaround initiative WE THANK YOU KINDLY!