Openening Slide

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ANNUAL REPORT 2007
... looking out for you
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Our Mission

• To offer value-added standardisation services on
  an ethical and principled basis that uplifts the
  African standard and empowers South African
  industry to compete vigorously towards increased
  market access.
• In so doing, the 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

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Highlights General

• Transformational interventions to become a
  world-class, international best-practice
  organization by 2010 include
• business re-engineering process
• customer relations management programmes
• management control system
• performance management
• competency development
• job evaluation

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Highlights Standards Division

• Met its principal KPI target of producing
  standards at a total cost of R1 500 per page
• Exceeded all other quantitative KPIs as set by
  the dti
• Continued to produce standards more quickly than
  the internationally accepted benchmark

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NUMBER OF DAYS TO PRODUCE A STANDARD
Number of days to produce a standard
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Highlights Regulatory Division

• Implemented a strategic plan aligned with
  government policy re technical regulations
• Aligning business model and activities to
  establish a method to best carry out the
  regulatory mandate
• changes in the way regulatory activities are
  conducted
• moving towards more effective inspection functions

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Highlights SABS Commercial (Pty) Ltd

• Implementing a business re-engineering process
  aimed at improving efficiency, effectiveness and
  customer service
• ...to be supportive of clients
• ...to add value to clients' businesses

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Highlights Chemical Industry

• 35 standards were published in this sector,
  including
• Revised standards for unleaded petrol, and
  automotive diesel fuel
• A new standard for bio-diesel, which was welcomed
  by the new bio-fuels industry
• SABS worked closely with DST and DME to build
  capability for full bio-diesel and bio-ethanol
  testing
• A standard on the Globally Harmonized System of
  classification and labelling of chemicals (GHS)
  was published and is proposed for regional (SADC)
  adoption
• Significant investment has been made in new
  equipment for chemical laboratories, including
  training and consultation with the University of
  Graz, Austria as a strategic partner on quality
  assurance

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Highlights Electrotechnology

• 273 standards were published in this sector
• Through accreditation by SANAS as well as the
  international IECEE CB Scheme, the laboratories
  offer exporters the advantage of test results
  being accepted across most of the developed world
• The laboratories have positioned themselves to
  compete in testing products for the
  telecommunications industry
• Awareness sessions on regulatory requirements
  were conducted at ports of entry
• 100 illegal imports and companies with unpaid
  levies were identified in this sector, and are
  being dealt with

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Highlights Services sector

• 40 standards were published in this sector,
  including
• Road transport management systems
• Requirements for bodies providing audit and
  certification of management systems
• Managing health and safety at live events (such
  as concerts and soccer matches)
• Product consignments are inspected on behalf of
  purchasing authorities such as SANDF, SAPS, SA
  Navy, SA Medical Services, SA Air Force, PROMAT,
  etc.
• Quality management certification is offered to a
  wide range of service providers, such as car
  rental, cleaning/ hygiene, financial, healthcare,
  security, training, etc

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Highlights Food and health

• 65 standards were published in this sector,
  including
• Aloe raw material, to assist the aloe industry
• Management of risks associated with use of
  medical devices
• Quantity and marking requirements for cosmetic
  products
• A new regulatory fishery forum was established
  with representation from all major industries
• A new state-of-the-art chromatographic instrument
  was commissioned to match SABS capabilities with
  those of any residue laboratory worldwide
• Commercial activities achieved a 35 growth in
  revenue as a result of its focus on service
  delivery

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Highlights Mechanical and materials

• 519 standards were published in this sector,
  including a 10 part international standard for
  lifejackets and personal flotation devices
• A standard for non-pressure paraffin stoves
  became compulsory on 1 January 2007
• The inspectorate for plastic carrier bags and
  flat bags was substantially increased and 1350
  surveillance inspections conducted.
• An MoU was signed with the National Housing and
  Building Regulatory Council (NHBRC) for
  collaboration in the management of building
  material quality

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Highlights Transportation

• 63 standards were published in this sector,
  including a nine-part standard on load securement
  on vehicles to assist law-enforcement authorities
  in determining "insecure loads" under the
  National Road Traffic Act
• Significant capital investment was made in
  laboratories and the seatbelt testing facility is
  one of the most modern in the world
• A certification scheme was launched for the
  installation of auto glass in motor vehicles
• The East London automotive testing facility is
  being upgraded to raise its emission testing
  capability from the Euro 2 to Euro 3/4 level.

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Highlights Design Institute

• A team of predominantly black designers took top
  honours at the 2006 Design Excellence Awards for
  their induction casting machine for platinum
  jewellery
• A Design for Development Lekgotla was hosted at
  the Innovation Hub, including participants from
  Botswana, Kenya, Nigeria and Uganda
• This was supported by an exhibition of products
  designed on the African continent
• A bi-monthly newsletter has been issued to the
  Network of African Designers (NAD) to promote
  greater contact among members

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Highlights Financial results

• Revenue increased by 15 compared to the previous
  financial year
• Total expenditure increased by 12
• Operating profit before taxation and financing
  increased by R42,9 million
• Restatement of 2006 results to account for long
  service leave liability of R17 million after
  taxation
• Group capital expenditure totalled R37,2 million
  (2006R30,6 million)
• Unqualified audit opinion

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YTD March 2007 results
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Revenue year on year comparison

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Revenue year on year comparison

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Expenses year on year comparison

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Performance against dti objectives
Promoting broader participation, equity and
redress in the economy (1)

• 1. Support national regional imperatives
• Training to 82 SMMEs in clothing, textile, civil
  brick making field
• 50 SMMEs were supported through subsidy scheme to
  test their products
• To date 63 standards SADC - harmonised
• Provided training to standards institutes in
  Botswana Lesotho

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Performance against dti objectives
Promoting broader participation, equity and
redress in the economy (2)

• 2. Preferential procurement
• 54 of procurement spend from BEE suppliers
• 3. Employment equity
• Black professional staff 47
• PDI 68
• Female 41

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Performance against dti objectives
Promoting co-ordinated implementation of
accelerated and shared growth initiative (1)

• 1. Group sustainable growth
• Commercial revenue increased with 12
• Publication sales of R12,3 million achieved
  (Target R6 million)
• Number of days to complete a standard reduced
  from 185 to 177 days
• Cost per page of standard of R1440 achieved

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Performance against dti objectives
Promoting co-ordinated implementation of
accelerated and shared growth initiative (2)

• 2. Increase market access for export of goods
• 558 new and revised standards produced
• 100 inspecting testing of local imports and
  exports of all fishery products
• SABS is a full member of ISO, IEC, PASC, OIML,
  SADCSTAN, SADCMEL
• 3. Improving market relevance recognition
• All commercial accreditation and certification
  operations retained their accreditation.

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Performance against dti objectives
Contributing towards building skills, technology
and infrastructure platforms

• Human capital development
• 35 university graduates and technikon students
  did internships and experiential training with
  SABS
• 11 trainees were offered permanent employment
  after their successful training
• 118 bursaries including MBA for managers were
  awarded

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Challenges

• Broaden our stakeholder base and secure
  maintain interest in standards development
• Expand services in important markets to support
  new industrial policy
• Capacity variances in SADC for success of
  regional integration
• IT infrastructure adequate and reliable
  functioning
• Need for major refurbishment of ageing technical
  infrastructure
• Recruiting and retaining scarce technical skills
• Physical security
• Successful exit of Regulatory division

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