1. PRESENTATION TO THE PORTFOLIO COMMITTEE OF HOME AFFAIRS STRATEGIC PLAN 2013 – 2018 26 March 2013 GOVERNMENT PRINTING WORKS

2. STRATEGIC OUTLOOK OF THE GPW Vision To be the State’s Mandate Security Printer Mission To provide cost effective, reliable and timeous services in security printing to all spheres of Government To provide the public with valuable information To disseminate Government information through technology, innovation and service excellence Values Reliability Integrity Accuracy Stakeholder satisfaction These belief systems motivate our people to provide excellent service to all our stakeholders 2

3. Contribution to the National Outcomes of Government Government Printing Works (GPW) strives to make a significant contribution to the national outcomes of government including the outcomes of: Create a better South Africa and contribute to a better and safer Africa and world. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship. Decent employment through inclusive economic growth. A skilled and capable workforce to support an inclusive growth path. 3

4. Legislative Mandate The Ministers of Finance, Home Affairs and Public Service and Administration approved the business case and GPW was established as a Government Component on 9 October 2009 (Government Gazette 32616). As a Government Component the GPW delivers security printing services to Government. The GPW operates on regular business principles, having to defray its expenditure from the revenue generated by services rendered. 4

5. Strategic Outcome Oriented Goals 2013 - 2018 Strategic outcome oriented goal 1 Develop the Government Component Goal statementFully develop the Government Component (GC) organisation to perform as a sustainable ring-fenced business entity with flexibility and within regulated parameters 5

6. Strategic Outcome Oriented Goals 2013 - 2018 Strategic outcome oriented goal 2 Optimise processes and facilities Goal statementOptimise processes and facilities to increase operational effectiveness and improved customer service 6

7. Strategic Outcome Oriented Goals 2013 - 2018 Strategic outcome oriented goal 3 Developed workforce Goal statementHave an efficient, effective and well-trained/developed workforce and special remuneration dispensation for the Government Component 7

8. BUDGET Specific budget R’000 2013/14 R’000 2014/15 R’000 2015/16 Remuneration (Roll-Out of new Structure) 225 572255 601276 621 Staff development 10 34510 34612 789 Capital expenditure – Facilities 180 000285 000190 000 Capital expenditure – Machinery Replacement Programme 85 22586 750102 606 Capital expenditure – IT Equipment & Furniture 20 00025 00029 000 To achieve the strategic outcome oriented goals the GPW has provided as part of its budget, the following: 8

9. STRATEGIC OBJECTIVES GPW has 18 Strategic Objectives in its 4 Branches Branch : Operations & Production 9

10. STRATEGIC OBJECTIVE 1.1 Strategic objective 1.1 Functional and secure production facilities Objective statementOccupy functional and secure production facilities BaselineNo baseline, newly defined strategic objective Justification Current building is not suitable for development of a secure printing facility and the current multi-level building is not conducive to production efficiency. LinksLinked to national security of the state and limiting identity and economic fraud, contributing to ensure secure documents and immigration issues. 10

11. STRATEGIC OBJECTIVE 1.2 Strategic objective 1.2 Production equipment Objective statement Acquire modern production equipment to satisfy all State security printing requirements BaselineNo baseline, newly defined strategic objective Justification To improve efficiency to enable cost effective production. State requires continuous improvement and innovation of security of documents therefore relying on the most advanced equipment and technology. LinksGPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service. 11

12. STRATEGIC OBJECTIVE 1.3 Strategic objective 1.3 Production of security printed materials Objective statement Produce security printed materials according to customer requirements and local/ international standards at the most cost effective manner and within the agreed delivery lead times Baseline 100% of Security Product Groups produced within the targeted timeframe Justification The objective is important due to its contribution and influence on National Security of the State via the design, development and production of secure documents. Areas of impact include: identity fraud, economic and academic fraud, and immigration related issues. LinksLinked to GPW’s vision of being the states’ mandated security printer contributing to national safety and security of the state 12

13. STRATEGIC OBJECTIVE 1.4 Strategic objective 1.4 Operational and control processes Objective statement Develop and maintain all operational and control processes to safeguard the integrity of security material BaselineNo baseline, newly defined strategic objective Justification The objective will strive to measure set standards to ensure in line with best practices in security production processes LinksGPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service. GPW’s vision of being the states’ mandated security printer contributing to national safety and security of the state 13

14. STRATEGIC OBJECTIVES Branch : Strategic Management 14

15. STRATEGIC OBJECTIVE 1.5 Strategic objective 1.5 Coordination and distribution of government information Objective statement Ensure the effective and efficient coordination and distribution of government information to the public Baseline 100 % Government Gazettes Published according to Quality & Delivery specifications Justification Through effective and efficient coordination and distribution of government information the GPW complies with its mandate and improved customer service. LinksGPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service. 15

16. STRATEGIC OBJECTIVE 1.6 Strategic objective 1.6 Availability of ICT services Objective statementProvide high availability of ICT services BaselineERP System developed and implemented Justification The objective will contribute towards the business continuity of GPW LinksGPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service. 16

17. STRATEGIC OBJECTIVE 1.7 Strategic objective 1.7 Secure ICT environment Objective statementProvide secure ICT environment BaselineNew ERP System developed and implemented Justification The objective is important due to its contribution to enable an environment in which GPW can fulfill its mandate to design, develop and produce secure documents and execute effective and efficient business processes LinksLinked to GPW’s mission of dissemination of government information; through technology, innovation and service excellence and the strategic outcome oriented goal of optimising processes and facilities to increase operational effectiveness and improved customer service 17

18. STRATEGIC OBJECTIVE 1.8 Strategic objective 1.8 Continuous printing process improvement Objective statement Provide framework for continuous printing process improvement BaselineNew ERP System developed and implemented Justification The objective is important due to its contribution to enable an environment in which GPW can fulfill its mandate to design, develop and produce secure documents and execute effective and efficient business processes LinksLinked to GPW’s mission of dissemination of government information; through technology, innovation and service excellence and the strategic outcome oriented goal of optimising processes and facilities to increase operational effectiveness and improved customer service 18

19. STRATEGIC OBJECTIVE 1.9 Strategic objective 1.9 ICT Support Services Objective statementOptimise ICT Support Services BaselineNew ERP System developed and implemented Justification The objective is important due to its contribution to enable effective and efficient business processes and internal customer satisfaction LinksLinked to GPW’s strategic outcome oriented goal of optimising processes and facilities to increase operational effectiveness and improved customer service 19

20. STRATEGIC OBJECTIVE 1.10 Strategic objective 1.10 Awareness of GPW Objective statement Raise and increase awareness of GPW including new/improved production capacity & capabilities BaselineMarketing branch has not been established Justification Raise awareness of the products and services delivered by GPW LinksTo contribute towards the strategic outcome oriented goal of developing the Government Component (GC) organisation to perform as a sustainable ring-fenced business entity with flexibility and within regulated parameters 20

21. STRATEGIC OBJECTIVE 1.11 Strategic objective 1.11 Product mix diversification Objective statementDiversification of product mix within security printing BaselineMarketing branch has not been established Justification To ensure sustainability and continuous growth of business LinksTo contribute towards the strategic outcome oriented goal of developing the Government Component (GC) organisation to perform as a sustainable ring-fenced business entity with flexibility and within regulated parameters 21

22. STRATEGIC OBJECTIVE 1.12 Strategic objective 1.12 Develop and implement a Marketing strategy Objective statement Aggressive marketing strategy to retain and grow the market developed and implemented BaselineMarketing branch has not been established Justification To ensure sustainability and continuous growth of business LinksTo contribute towards the strategic outcome oriented goal of developing the Government Component (GC) organisation to perform as a sustainable ring-fenced business entity with flexibility and within regulated parameters 22

23. STRATEGIC OBJECTIVE 1.13 Strategic objective 1.13 Security risk management system Objective statement Develop and implement a security risk management system BaselineIn process of developing security risk management plan Justification To ensure the vision of being the State’s mandated security printer; a security risk management system must be implemented. LinksCompliance with Minimum Information Security Standards (MISS); Minimum Physical Security Standards (MPSS) and other legislation 23

24. STRATEGIC OBJECTIVE 1.14 Strategic objective 1.14 Provide independent and objective assurance and consulting services to management Objective statement To provide independent and objective assurance and consulting services to management including assessing the adequacy and effectiveness of internal controls and governance processes BaselineApproved annual internal audit plan JustificationLegislative requirements – PFMA LinksIIA (Institute of Internal Auditors) standards 24

25. STRATEGIC OBJECTIVES Branch : Financial Services 25

26. STRATEGIC OBJECTIVE 1.15 Strategic objective 1.15 Financial and supply chain management Objective statement Provide quality financial and supply chain management services in compliance with legislation and with clients needs to contribute towards financial sustainability. BaselineUnqualified audit opinion Justification Necessary to ensure financial resources are managed in accordance with legislation and sound financial management practices to contribute towards financial sustainability LinksPFMA and Treasury Regulations requirements 26

27. STRATEGIC OBJECTIVES Branch : Human Resources 27

28. STRATEGIC OBJECTIVE 1.16 Strategic objective 1.16 Ensure adequate and trained workforce. Objective statement Provision of adequately trained employees to support the organisation towards growth and sustainability. Baseline Approved organisational structure, drafted human resource policies and training results. JustificationTo sustain and develop the organization LinksPublic Service Act and other applicable legislation. 28

29. STRATEGIC OBJECTIVE 1.17 Strategic objective 1.17 Special remuneration dispensation Objective statementDesign and negotiate a special remuneration dispensation Baseline Remuneration benchmarking completed and cascaded to various role-players/decision makers. JustificationTo retain skills and sustain the organisation. LinksDepartment of Public Service and Administration. 29

30. STRATEGIC OBJECTIVE 1.18 Strategic objective 1.18 Develop and implement labour relations and employee wellness management policies, processes and programmes Objective statement Enhance sound labour relations between the employer and employee and implementation of employee assistance wellness framework and programmes BaselineNone JustificationTo ensure sound labour relations and well supported staff. LinksDifferent legislation. 30

31. KEY PROJECTS Installation and commissioning of new security printing division New ID Smartcard Implementation of the E-Gazette Create capacity to print passport visa pages in-house Implementation of new ERP system Development of new facility at Visagie Street Polycarbonate card manufacturing plant 31

32. Critical equipment that needs to be procured as part of the asset replacement program, includes the following: (R’000) DIVISIONDESCRIPTION2013/142014/152015/16 Photo reproduction1C-T-P system3 000 Web-fed division2Wide web-press18 225 3Wide web-press20 000 4Kraft press20 280 5Four unit web press6 000 Sheet-fed division6Four unit press10 850 PoD Section7Digital printer30 000 8Sheet-fed digital printer6 000 Bookbinding section9Sewing machine12 000 10Counting machine1 000 Formbinding section11Perfect binder4 750 12Counting machine1 000 13Counting machine1 000 14Five station web collator8 000 Passport factory15Polycarbonate line51 476 Examination section16Automated packaging system60 000 Special products17Intaglio press25 000 TOTAL85 22586 75082 606 32

33. Income estimates over the MTEF are summarised as follows : Statement of Financial Performance (R million) Audited Outcome 2008/09 Audited Outcome 2009/10 Audited Outcome 2010/11 Audited Outcome 2011/12 Medium- Term Estimate 2012/13 Medium- Term Estimate 2013/14 Medium- Term Estimate 2014/15 Revenue487.0639.0753.4692.9719.51 166.41 368.81 440.0 Transfers Received 160.9334.597.4129.0134.0142.5Nil 33

34. Expenditure estimates over the MTEF are summarised as follows : Statement of Financial Performance (R million) Audited Outcome 2008/09 Audited Outcome 2009/10 Audited Outcome 2010/11 Audited Outcome 2011/12 Medium- Term Estimate 2012/13 Medium- Term Estimate 2013/14 Medium- Term Estimate 2014/15 Medium- Term Estimate 2015/16 Employee Benefits 86.894.099.7109.5124.1225.6255.6276.6 Administrative Expenditure 25.019.726.031.734.048.850.655.0 Production and Stores 500.7497.0473.8517.0653.9891.9995.91 040.7 Equipment 1.41.31.71.31.41.5 1.6 Professional Services 26.824.049.148.751.657.157.958.4 Depreciations and Provisions 57.166.778.369.089.2109.1138.2169.3 Sundry Expenditure 6.55.83.62.02.12.22.32.4 34

35. WE THANK YOU KINDLY! 35