Denel Presentation to NCOP

1. Denel Presentation to NCOP

2. Agenda • S A Defence Industry • Denel Profile • Divisions & Products • Challenges/Responses • Gender Equity • Racial Inequalities • Employment & Skills Development • Question and Answer

3. SA Defence Industry MINISTER OF DEFENCE PRIVATE INDUSTRY • AEROSUD • AFRICAN DEFENCE • SYSTEMS (ADS) • ALTECH • AMS • ATE • ALVIS OMC • GRINTEK • IST • M-TEK • LOG-TEK • PLESSEY • REUNERT • Others NATIONAL DEFENCE FORCE • ARMY • NAVY • AIR FORCE • MEDICAL • DESIGN • DEVELOP • MANUFACTURE • SUPPORT • MARKETING SECRETARY OF DEFENCE • POLICY • BUDGETS • CONTROL ARMSCOR • PROCUREMENT • MARKETINGSUPPORT MINISTER OF PUBLIC ENTERPRISES

4. Denel Profile (1)

5. Denel Profile (2) • Eleven military type factories • Aerospace • Land Systems • Non-military fields • IT, Property • Food, • Electronics and Plastics • Original Equipment Manufacturer • Staffing: 10 400 employees

6. Denel Manufacturing Plants

7. Aerospace Division Helmet sighting systems UAVs / observation systems Missiles & guided weapons Aircraft parts manufacture / maintenance / refurbishment Rooivalk attack helicopter OTB multi-purpose test range Target drones

8. Land Systems Division Artillery systems: 155mm & 105mm long range Plant manufacture Artillery propellant charges & projectiles Infantry weapons Small / medium calibre ammunition Aerospace

9. Commercial and IT Division • Denel Properties (Pty) Limited • Dendustri – Aluminium Components • Irenco – Electronic & Plastic injection • SPP – Soya-based Protein-rich foodstuffs • IT Interests – Cosource, Arrivia.kom, Sybase • Densecure – In-house Insurance company

10. Denel Challenges & Responses

11. Human Resources Challenges andDenel Responses • Gender Equity • Racial Equality • Skills Development • Unemployment

12. (74,4%) (25,6%) Gender

13. Gender Equity

14. Gender EquityDenel Responses • The company is targeting women in all recruitment processes • Bursary recruitment process also targets female students • Currently women make up 25,6 % of our employees • Still very few women pursue technical careers

15. (39,1%) (21,8%) (12,2%) (9,3%) (8,7%) (7,1%) (1,3%) (0,5%) Race

16. Racial Equality

17. Racial EqualityDenel Responses • Full compliance with Employment Equity Act • EE forums active - unions & management • Recruitment processes are biased towards HDI’s in technical positions, eg. Engineers and technicians

18. Skills 1% 7,2% 4,5% 5,6% 0,8% 18% 13,2% 49,7%

19. Denel Youth FoundationTraining Programme (DYFTP) • Bridging programme (Grade 12) to improve: • Maths • Science • English Language literacy • 600 students have been trained • many graduated with degrees • a large number have been placed within Denel • DYFTP currently has 450 learners, 35% are female

20. GET SET Programme • Prepares secondary school girls to embark on:(based in Tembisa) • Science • Engineering • Technology based careers • 140 grade 10 – 12 girls (Saturday classes & experience at Denel) • Programme to be expanded 10 learners from rural areas in each province will receive support in: • Maths • English • Science • Life Skills

21. Outreach Programmes • Sediba Teacher Development Project • Grade 12 Maths and Science teacher and learner skills in Potchefstroom • Programme to be extended nationally – new CSI focus • Bursaries • Long-term requirements of Denel • Core business areas in engineering, technology and scientific fields • Bursaries worth R7,8 million were awarded last year This year, Denel employed 73 bursary students

22. Skills Development Denel Centre for Learning and Development: • The School of Business Leadership • The School of Aerospace • The School of Land Systems Skills Development Projects • Through eight sector education and training authorities • Focus on Engineers, Scientists and Technicians • External training within South Africa • External training in Nepad countries

23. Management Training • Management Development for Aerospace Group • STTP Saab-Gripen Programme • Corporate Finance Course for Senior Managers • Strategic Marketing Course • TOPP – Chartered Accountant Training • 1 White Female, 1 Coloured Male, 2 African Males

24. Operational Training • Project Management - Wits Aeronautical and Engineering School • Graduate Diploma in Engineering (GDE) - Wits Engineering School • Denel artisans with experience but without tertiary qualifications • Project Management - Institute for Aeronautics and Space (IAS) • Denel employees trained in Toulouse, France

25. Skills Transfer Programme SAAB Aerospace in Sweden and Denel Aviation • Historically-disadvantaged employees trained in world-class technology. • Consists of a comprehensive design and development centre • Skilled personnel trained in further international aerospace work • Supports further development of the Gripen Fighter Aircraft • Transfer of skills in a vast number of engineering, manufacturing, flight testing and management processes employed by SAAB. • In the past 3 years, 23 engineers have been trained, 11 are black.

26. Skills Training in SA • Advanced Aircraft and Type training (1 260 employees from 52 companies): • Aircraft engine courses • Airframe courses • Maintenance courses • Denel Apprentice School (180 students from private companies- AMOSA) • 43 previously disadvantaged individuals • 7 women • 96 sponsored by Denel – 67 blacks and 4 women. • Apprentices are trained for 4 years, including on-the-job-training

27. Skills Training in NEPAD countries

28. UnemploymentDenel Response • Youth Development Programme • DOD students • Auditor General • Denel • Social Plan • Training for retrenched employees • SMME support programmes • Outreach Programmes • Communities trained to create own employment • Needlework project in Swartklip

29. Conclusion • Competitiveness of SA Defence Industry • Denel is a strategic state asset – SANDF competitiveness • Strong and competitive global markets • Innovation • Human capital provisioning strategy (Critical skills): • Attract • Develop • Retain

30. Question and Answer