1. Presentation to the Portfolio Committee on Safety and Security Cape Town 4 th May 2001

2. Presentation to the Portfolio Committee on Safety and Security 4 th April 2001 Background to Presentation SA Security Industry in Context Global Market- Withdrawal & privatisation of traditional government role - Globalisation & consolidation; US$20 Billion industry predicted to grow at 20% pa - Technological advances – increasing move away from human resource based solutions to electronic solutions Africa- Major market; security a result of social issues derived from wealth divide - SA security industry most advanced & sophisticated South Africa- Gateway to Africa - Resource base - Stability - Investor friendly coupled to market potential

3. Presentation to the Portfolio Committee on Safety and Security 4 th April 2001 Foreign Direct Investment in SA Security Industry Yr 2000Armor Holdings Inc. Acquired TechniSec Pty Ltd Secricor PLCAcquired Gray Security Pty Ltd Chubb PLCAcquired BBS Yr 2001Tyco (ADT)Acquired Sentry Pramed Total Foreign Direct Investment approximately GBP£ 200 Million (R2 Billion) SA Industry Overview Mid 90’sCrime & insecurity leads to massive growth in private sector security industry Late 90’sDomestic consolidation of SA companies into 4 majors Early 2000’sEntry of Multinational interest

4. Presentation to the Portfolio Committee on Safety and Security 4 th April 2001 Citizenship “The Right to Manage” ConcernCurrent provisions unfairly discriminate against the selection and appointment of company officers (directors) by international and multi-national companies on the basis of citizenship and permanent residence. In effect the Bill fails to distinguish the commercial management of the business (in which shareholders of often publicly quoted companies have a particular interest) from the day to day operational management and delivery aspects. IssuesAlthough exemptions are proposed the bill fails to specify the basis on which exemptions will be made and no procedures are laid out for the application of such exemptions. The Companies Act, 1973 and various immigration laws already regulate issues relating to the appointment and conduct of directors, foreign and otherwise. In effect by failing to separate commercial responsibilities for business management from operational responsibility for the delivery of security services, the bill undermines a company’s choice as to who manages the business within South Africa by imposing citizenship and permanent residence requirements. Concerns

5. Presentation to the Portfolio Committee on Safety and Security 4 th April 2001 Foreign Ownership “ TSHWETE said the bill would confine ownership of security companies to South Africans” The Sunday Times. 25 Feb 2001 ConcernAlthough not directly contained in the draft bill, comments by Minister Tshwete reported in The Sunday Times newspaper indicate a desire by government to restrict ownership of South African security companies. IssuesGiven the diversity of the South African security industry, encompassing design, manufacture, supply, installation and maintenance of security measures, both human (guards, alarm response, etc.) and technical (alarms, control panels, communications, computerised access control, etc.) such a restriction would have significant impact on existing and projected foreign direct investment into South Africa. Gateway to Africa ArmorGroup is further concerned that restrictions on ownership of a South African company would impact on their current investment into the SADC and their existing corporate structure, whereby ArmorGroup Africa Pty Ltd is the holding company for ArmorGroup subsidiary companies in Mozambique and Zimbabwe. Furthermore, ArmorGroup Africa Pty Ltd. is the established corporate vehicle for the groups future investment intentions for expansion with the SADC whilst providing a resource base for man power and material to support the groups commercial activities within the SADC and African continent. Concerns

6. Presentation to the Portfolio Committee on Safety and Security 4 th April 2001 Registration RequirementsDistinguish registration requirements for company directors from requirements for security service provider i.e. deal with separately in the Bill DirectorsGiven that the Companies Act, 1973, adequately regulates, we would respectfully request that requirements relating to citizenship, permanent residence and training should be removed from the bill insofar as Directors are required. For the avoidance of doubt, reference in Section 20 (2) (a) of the bill to persons performing “controlling” functions should be re-examined with a view to being removed altogether. Foreign OwnershipNo restrictions Request Legal Drafting ArmorGroup would in conjunction with its legal advisors, be happy to make suggestions as regards the drafting of relevant provisions, should the committee wish to consider making amendments pursuant to these representations.