BUDGET PRESENTATION 2004/2005

1
BUDGET PRESENTATION2004/2005

• PRESENTED BY
• CREMILDE GUEDES
• ACTING CEO

2
SABS VISION

• To be recognized as a leading standardization
  body, a global company, and the preferred
  provider of products and services which underpin
  the competitiveness of South Africa

3
WHAT BUSINESS ARE WE IN?
Our aim is to provide Standards, Regulatory
Conformity Assessment Services that improve the
competitiveness of South Africa and provide
appropriate consumer protection.
4
OUR MANDATE

• Facilitating trade in commodities services
  nationally internationally
• Protecting consumers society on health
  environmental issues
• Development, publication dissemination of
  national standards for products services
• Administer compulsory specification on behalf of
  the Minister of Trade Industry to protect the
  health safety of the consumer or provide
  environmental protection where market forces have
  been shown to be inadequate or have failed
• Administer the Trade Metrology Act that ensures
  equity in trade activities that are based on
  measurements
• To give effect to the provision for quality
  promotion as contained in the Standards Act
  SABS is the home of the Design Institute

5
OTHER OBJECTIVES

• Improve South Africas competitiveness
• Open markets for South Africas products
• Improve quality for South Africas products
• Efficient operations
• Raise the quality level of the industry
• To be a preferred employer
• To protect the consumer

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THE SOUTH AFRICAN BUREAU OF STANDARDS

• Traces roots to 1903
• Set up as Standardization Body in 1945
• 50 Year history of success
• Major Standardization Body in Africa
• Review of South African Science System in 1995
  1997
• Peer Review of SABS in 1997
• SQAM Review - 1998

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OVERVIEW OF OPERATIONS

1. SABS - CORPORATE
2. SABS CORE ACTIVITIES
3. SABS COMMERCIAL ACTIVITIES

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CORPORATE

• CEO
• Chief Financial Officer
• Internal Audit
• Marketing/ Communications
• Human Resources

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CORE ACTIVITIES

• Standards
• Regulatory
• Design Institute

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COMMERCIAL ACTIVITIES

• Testing
• Certification
• Training

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BIODAT (PTY) LTD CC King (Acting)
SABS HOLDINGS (PTY) LTD Dr RJ Carolissen
COUNCIL
COAL MINERAL TECHNOLOGIES (PTY) LTD J Bekker
FINANCE CFO CO Guedes
CO GUEDES (ACTING)
EUROTYPE TEST CENTRE (PTY) LTD J Janjic
companies
STANDARDS Dr CJ Johnston
BATHEKGI CORPORATE SERVICES (PTY) LTD DB Paul
(Acting)
GLOBAL CONFORMITY SERVICES (PTY) LTD Dr E
Meintjies
Commercial Activities
REGULATORY AFFAIRS CONSUMER PROTECTION Vacant
Core Activities
divisions
corporate
AUDIT BM van Wyk
TESTING CONFORMITY SERVICES (PTY) LTD BIODAT
(PTY) LTD RJ Carolissen (Acting)
MARKETING COMMUNICATION DB Baker/FK Mathivha
DESIGN INSTITUTE AB Viljoen
QUESH SP Oliphant
GGS GAMING (SA) (PTY) LTD
Joint ventures
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STANDARDS

• Promote the interests of industry the consumer
  through the provision of standards
• Harmonizing national standards with international
  standards (ISO IEC)
• Leadership in SADCSTAN to further the
  harmonization of standards technical
  regulations within SADC
• Provide assistance training to SADC/Africa
  standards bodies in support of NEPAD

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REGULATORY

• Administration of technical regulations to ensure
  compliance to safety, health the environment
• The core business is to render a regulatory
  service within the framework of a Best Practice
  Model
• Social Imperatives
• Lower Technical Barriers to Trade
• Improve investors confidence
• Division is faced with some issues of credibility
  in the market
• Clarification around the levy model will also
  clear explanation to industry
• Will help in gaining the confidence of various
  industries

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DESIGN INSTITUTE

• Promotion of SA Design
• Division is currently involved in major
  strategies regarding a National Design Policy
• Will guide design promotion alignment with the
  National System of Innovation the objectives of
  NEPAD

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TESTING

• Testing, calibration, inspection, monitoring
  assessment services
• nationally internationally
• Accreditation in accordance with
• ISO/IEC 17025
• OECD GLP (Good Laboratory Practice)
• ISO 9000
• SANAS

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• Testing Conformity Services (Pty) Ltd
• Wide range of tests
• From microbiology to extra high voltage
• 70 Labs in Pretoria Olifantsfontein
• 7 Labs in Cape Town East London
• Eurotype Test Centre (Pty) Ltd
• Wide range of automotive tests Pretoria
• CoP Testing East London

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CERTIFICATION

• Provides consignment inspection, product system
  certification services nationally globally
• Accreditation in accordance to
• SANAS
• RvA
• UKAS
• Global Conformity Services (Pty) Ltd
• System Certification
• ISO / Eurepgap / HACCP / OHSAS
• Coal Mineral Technologies (Pty) Ltd
• Quality solutions to the fuel, mineral related
  industries

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TRAINING

• Provides training in
• Quality Management ISO 9000 series
• Environmental Management ISO 14000 series
• OHSAS 18000 series
• HACCP SANS 1330 series
• Information Security ISO 17799 series
• SAATCA
• SETA

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CHALLENGES FACING SABS

• Globalization organizations such as BSI, SGS
  setting up businesses in the country
• Sustainability of the economy
• Unemployment
• The effect of HIV/AIDS on the workforce
• The increasing importance of Corporate Social
  Responsibility

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• Rapid advances in information communication
  technology
• Regionalization, in particular the initiatives
  flowing from NEPAD SADC
• The growing debate on the supply of conformity
  assessment services by organizations linked to
  government vs those in the private sector

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SABS COMMERCIAL ACTIVITIES

• The external revenue is expected to increase by
  14, made up of
• 6 price increase
• 8 customer growth
• Increase in expenses are mainly
• Personnel
• Marketing

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KEY PRIORITIES

• Sustainable Growth
• Efficient, Transparent fair Regulatory Services
• Improvement in market access exports, as
  facilitators emissaries of trade
• Support National Regional Imperatives
• BEE
• SME
• SADC
• NEPAD
• Improvement in Service Delivery

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BUDGET 2004/2005
R000s
Government Funding
Science Vote 98 099
DTI - Trade Metrology 9 000
107 099

Standards 49 548
Regulatory include Trade Metrology 34 163
Design Institute 7 208
Corporate 12 580
SAQI 2 000
NETFA / NLVA 1 600
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BUDGET 05 R000s SABS CORE ACTIVITIES SABS HOLDINGS COMMERCIAL ADJTS I/GROUP PENSIONERS M/AID TOTAL GROUP
External Revenue 55.529 276.141 331.670
Core Funding 107.099 107.099
Inter Group Revenue 7.482 83.882 (91.364) 0
Other Income 724 6.212 6.936
Total Revenue 170.834 366.235 (91.364) 445.705
Personnel Costs (88.927) (175.996) (264.923)
Other Costs (96.671) (176.624) 116.864 (207.431)
Total Expenditure (185.598) (352.620) 91.364 (472.353)
Net Profit/ (Loss) before Taxation (14.764) 13.615 (25.500) (26.648)