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

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

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

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 and Denel Responses Gender Equity Racial Equality Skills Development Unemployment

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

13. Gender Equity Level 2002/20032003/2004 Exco2/1118 %2/1020 % GM’s Corporate0/0 0 %2/1712 % GM’s Divisions2/911 %2/728 % Division Management7/838 %19/10817 %

14. Gender Equity Denel 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%) (9,3%) (21,8%) (7,1%) (12,2%) (1,3%) (0,5%) (8,7%) Race

16. Racial Equality Level 2002/20032003/2004 Exco4/1136 %6/1060 % GM’s Corporate4/1724 %7/1741 % GM’s Divisions4/944 %5/771 % Division Management27/8333 %47/10843 %

17. Racial Equality Denel 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 49,7% 18% 7,2% 1% 4,5% 5,6% 0,8% 13,2%

19. Denel Youth Foundation Training 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 CountryNumber TrainedAspect of training Kenya20King Air aircraft – engine, airframe, maintenance Uganda 6Engine airframe and avionics Botswana20Engine and airframe Zambia8Civil aircraft regulations Gas turbines, airframes Namibia5CAR, jet engines, airframes Angola4General Zimbabwe10Generic courses Swaziland9Advanced training, aircraft maintenance

28. Unemployment Denel 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