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

6. 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

7. OVERVIEW OF OPERATIONS • SABS - CORPORATE • SABS – CORE ACTIVITIES • SABS – COMMERCIAL ACTIVITIES

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

9. CORE ACTIVITIES • Standards • Regulatory • Design Institute

10. COMMERCIAL ACTIVITIES • Testing • Certification • Training

11. BIODAT (PTY) LTD CC King (Acting) SABS HOLDINGS (PTY) LTD Dr RJ Carolissen COUNCIL COAL & MINERAL TECHNOLOGIES (PTY) LTD J Bekker CO GUEDES (ACTING) FINANCE CFO CO Guedes 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

12. 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

13. 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 investor’s 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

14. 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

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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. BUDGET 2004/2005