| Onderstepoort Biological Products © |22nd February 2013Page 1 Presentation to the Portfolio Committee on Agriculture, Forestry and 22 nd February 2013

Outline of Presentation | Onderstepoort Biological Products © |22nd February 2013page 2 Introduction Mandate, Vision and Mission Historical Perspective Governance of OBP Alignment to Government Programmes Structure Workforce Profile Geographical layout. Importance of vaccines The vaccine market and product life cycle Quality of vaccines R&D and production Vaccine Bank/Reserve Production and related challenges Finances Summary of challenges Possible solutions. Conclusion and Impact

Introduction | Onderstepoort Biological Products © |22nd February 2013Page 3

Onderstepoort Biological Products, Ltd | Onderstepoort Biological Products © |22nd February 2013Page 4 Mandate: OBP exists to prevent and control animal diseases that impact food security, human health and livelihood Vision: To be a global biotech manufacturer of animal health products, underpinned by a skilled, innovative and passionate staff Mission of OBP: The mission of OBP is to translate science into biological and health products, knowledge and technology resulting in improved animal and human health, food security and safety, for all stakeholders. One of the primary objectives of OBP is to produce quality vaccines for the prevention and control of livestock diseases in South Africa, Africa and globally

Historical Perspective 1908: Establishment of Onderstepoort Veterinary Research Institute 1968: Dedicated vaccine facility established 1981: Vaccine facility operated with trade account and able to begin to fund operations from sale of vaccines 1992: OBP separated from OVI (ARC) 2000: OBP incorporated as a SOE on 6 th September 2001:OBP received funding of R9 million (last grant received, to date, from Public Works) 2005: State owned land and buildings officially transferred to OBP 2007:Achieved ISO 9001 certification. 2010: Achieved a revenue milestone > R 100 million 2011: Achieved revenue milestone > R 150 million | Onderstepoort Biological Products © |22nd February 2013Page 5

Governance of OBP State owned company of the Department of Agriculture, Forestry and Fisheries (DAFF) 3B entity under Public Finance Management Act (PFMA) State owned Company (SOC) under Companies Act (registered taxpayer) Own OBP Incorporation Act (OBP ACT no 19, 1999) Corporate governance codes & protocols National Key Point ISO standards & business specific regulatory authorities | Onderstepoort Biological Products © |22nd February 2013Page 6

| Onderstepoort Biological Products © |22nd February 2013page 7 Government programme StrategyOBP Alignment NDP Economy and employment OBP provides direct employment and indirect employment through supporting livestock farming. Economic infrastructure o OBP is being modernised and recapitalised. Inclusive rural economy o OBP support rural livestock owners and farmers. Positioning SA in the world. o OBP competes with its products in world markets. PICC SIP 11 Agri-logistics and rural infrastructure o OBP indirectly supports this strategy through the livestock farmers it supports. Alignment to Government Programmes

| Onderstepoort Biological Products © |22nd February 2013Page 8 Government programme StrategyOBP Alignment MTSF Outcome 5: Skilled and capable workforce to support an inclusive growth path. o Human capital development programme o Learnership and Internship programmes. Outcome 7: Vibrant, equitable, sustainable rural communities, contributing towards food security for all. o Promotion of vaccination as a cost-effective measure to manage diseases and improve livestock production. o Continued development and manufacturing of vaccines against economically important animal diseases. New growth path Jobs driver 2: Agricultural value chain o Vaccines continue to play a critical role as a cost effective solution to animal health during the critical livestock production phase. Job Driver 2: Seizing the potential of new economies o There is a need to transition into new innovative “3 rd generation biotechnology” for safer, more efficacious and affordable vaccines. Jobs driver 2: Manufacturing – IPAP2 (Scale-up and broaden interventions in the Plastic, Pharmaceutical and Chemical sectors) o Increased revenues from local and export sales of OBP products into current and new markets once the manufacturing facility is GMP certified resulting in job creation. Alignment to Government Programmes

| Onderstepoort Biological Products © |22nd February 2013Page 8 Government programme StrategyOBP Alignment DAFF Strategic Plan Strategic Goal 1: Increased profitable production of food, fibre and timber products by all categories of producers (subsistence, smallholder and commercial) o OBP’s mandate is to assist government in the control and prevention of animal diseases that impact food security and public health Strategic Goal 5: Increase contribution of the sector to economic growth and development o Improved animal health and reduction in losses due to morbidity or mortality of animals, and ability to export to other markets will contribute to the growth and development of the livestock (agriculture) sector IPAP Sector Specific: Vaccine Production o OBP is one of the main and biggest out of three local producers of animal vaccines for the local and international market. Most if not all of the multinational companies import their vaccines. Alignment to Government Programmes

| Onderstepoort Biological Products © |22nd February 2013Page 10 OBP Structure