STRATEGIC PLAN AND BUDGET 2007/8

1. STRATEGIC PLAN AND BUDGET 2007/8 PRESENTED BY: MARTIN KUSCUS, CEO

2. OUTLINE OF PRESENTATION • OVERVIEW OF SABS • MANDATE AND MISSION • CORE FUNCTION AND KEY PROCESSES • STRATEGIC OBJECTIVES AND CHALLENGES • OPERATIONAL AND CAPEX BUDGETS 2007-03-07

3. WHAT IS SABS? SABS is the premier standardization body in Africa: • Prepares and publishes National Standards (>5000 in total) • Provides information on national, regional and international standards (>500 000 in library) • Provides WTO/TBT enquiry point • Tests products against standards (>70 laboratories) • Certifies products and systems against standards • Regulates to Compulsory Specifications • Provides Legal Metrology Services • Promotes innovation and excellence in design 2007-03-07

4. SABS SUPPORTS DTI OBJECTIVES • Regional Integration & Capacity Development: • Supports NEPAD framework • Participation and leadership in SADC SQAM activities • Broader participation, equity and redress in economy: • Objective standards, developed transparently • Building confidence through testing and certification • Targeted support to SMMEs • Raising exports and promoting equitable global trade • Intensive international standardization participation • Harmonization of national with international standards 2007-03-07

5. OVERVIEW • SABS is a statutory body • established by Standards Act (No 24 of 1945) • currently Standards Act (No 29 or 1993) • Agency of the dti • funding via Treasury allocation to EIDD • Governed by 8-member Council appointed by Minister • Head Office in Groenkloof, Tshwane • also offices in Cape Town, Durban, PE, and many more • Total staff 1543 persons • 876 at Head Office 2007-03-07

6. SABS MISSION To offer value-added standardisation services on an ethical and principled basis that uplift the African standard and empower South African industry to compete vigorously towards increased market access. In so doing SABS contributes to the economic growth of South Africa and Africa as a whole within a framework that protects consumers and the environment by promoting uncompromised quality of products and services 2007-03-07

7. CORE FUNCTIONS AND KEY PROCESSES • Standards • Regulatory • Conformity Assessment • Design Institute 2007-03-07

8. STANDARDS • Prepares national standards and related documents • based on consensus in representative technical committees • 400 new or revised standards to be provided in this year • Supports extensive international participation to maximise harmonization of national standards • in line with WTO/TBT requirements • Publishes national standards, and provides information on all standards, world-wide • paper (print on demand), electronically, web store • 36 000 standards enquiries targeted for this year • Supports regional standards initiatives • SADCSTAN, ARSO 2007-03-07

9. REGULATORY • Minister declares certain national standards to be compulsory (Compulsory Specifications) based on health, safety, environment and consumer protection • Administers Compulsory Specifications: • inspections, approvals and sanctions • Wide range of products covered: • Food, electrotechnical, automotive, etc • Also provides Legal Metrology services as per Trade Metrology Act • Provides regulatory services to other Government Departments at their request 2007-03-07

10. CONFORMITY ASSESSMENT (COMMERCIAL) • Conformity assessment supports business world-wide • market in SA is competitive in some areas • These services are ring-fenced from State funds • SABS Commercial (Pty) Ltd • Services include: • testing • assaying • inspection • system certification (ISO 9000, etc) • product certification (SABS Mark) • commercial training 2007-03-07

11. CONFORMITY ASSESSMENT(“GOOD OF THE NATION”) • NETFA • Biodiesel • Solar Panel Research • Accoustics Laboratory • Research and Development 2007-03-07

12. DESIGN INSTITUTE Promotion of excellence in South African design by: • Building youth design leadership through Design Achiever Programme • Building network of Africa designers culminating inPan-Africa Design day • Design Institute of SAAwards (to be aligned closer to dti and Export Africa initiatives) • Prototype Award Scheme to expand design advice in partnership with Tshumisano Trust and Technology Stations 2007-03-07

13. STRATEGIC DIRECTION & CHALLENGES • Regional and international involvement • World-class best practice • Service delivery • Human capital development • Brand expression • Upgrading of facilities 2007-03-07

14. REGIONAL INVOLVEMENT • Main focus is South African market, however: • interdependency with the needs of Africa • strong African SQAM infrastructure needed for trade • SADCSTAN (SADC cooperation in standardization) • Secretariat and coordinator + 5 technical committees • SADCMEL (SADC cooperation in legal metrology) • Secretariat and coordinator • 63 Standards harmonized • 25 to be approved at SADCSTAN AGM in April 2007 • ARSO (African Standards Organization) • Full member since 2006 • Leading role in reshaping the organization 2007-03-07

15. INTERNATIONAL INVOLVEMENT • Objective is to attain management positions within international organizations in order to leverage advantage for South Africa • ISO (currently): • Council member • Finance Committee member • Technical Management Board member • OIML (currently): • Vice-President • IEC 2007-03-07

16. WORLD CLASS BEST PRACTICE • Importance of attaining internationally accepted accreditation of services • this guarantees worldwide acceptance of certificates, inspections and test reports for >15 000 clients • SABS has clients in 43 different countries • Dual accreditation to RvA & SANAS • Shift in market emphasis away from manufacturing towards services • standards used demonstrate compliance to health, safety, environmental and social policies • strong focus on local government 2007-03-07

17. SERVICE DELIVERY • Competitive environment and scarce resources demands innovative and entrepreneurial solutions • Earlier divisionalised structure resulted in silos and tunnelled response to clients. Service delivery was lacking • Several programmes introduced to address this: • improved customer interfaces • business process re-engineering and better usage of technology • improved management controls supported by ICT refurbishment of R30m 2007-03-07

18. HUMAN CAPITAL DEVELOPMENT • Human capital is SABS' principal asset • Specialised skills and knowledge in this field are not readily available in the market • they need to be developed in-house • Human capital development programmes include: • competency development programme • retention • performance management system • Internships – currently 28 (2007 forecast 40) 2007-03-07

19. BRAND EXPRESSION • Need for revitalization of the SABS brand • Best accomplished from "inside out" involving all staff • 5-year programme known as "SABS Roadmap 2010" is guiding all strategic initiatives, aimed at: • sustainable growth, leverage of SABS brand • stakeholder involvement/partnerships • R&D, knowledge management, market intelligence • technology catch-up and innovation • service delivery and customer focus • reduction in bureaucracy • high performance culture • regional involvement 2007-03-07

20. UPGRADING OF FACILITIES • Technical infrastructure of buildings needs upgrading • Head Office buildings over 30 years old • structurally sound • support facilities (aircon, power, chilled & heated water) are at the end of their design life and are temperamental • frequent service breakdowns disrupt production in laboratories • Refurbishment is a major capital project (>R140 million) • various financing options are being considered 2007-03-07

21. OPERATIONAL BUDGET 2007-03-07

22. CAPEX BUDGET 2007-03-07

23. RAISING THE AFRICAN STANDARD