SOUTH AFRICAN BUREAU OF STANDARDS BUDGET PRESENTATION 2004/2005 PRESENTED BY: CREMILDE GUEDES ACTING CEO

SOUTH AFRICAN BUREAU OF STANDARDS 2 To be recognized as a leading standardization body, a global company, and the preferred provider of products and services which underpin the competitiveness of South Africa

SOUTH AFRICAN BUREAU OF STANDARDS 3 “Our aim is to provide Standards, Regulatory & Conformity Assessment Services that improve the competitiveness of South Africa and provide appropriate consumer protection.”

SOUTH AFRICAN BUREAU OF STANDARDS 4 OUR MANDATE n Facilitating trade in commodities & services nationally & internationally n Protecting consumers & society on health & environmental issues n Development, publication & dissemination of national standards for products & services n Administer compulsory specification on behalf of the Minister of Trade & Industry to protect the health & safety of the consumer or provide environmental protection where market forces have been shown to be inadequate or have failed n Administer the Trade Metrology Act that ensures equity in trade activities that are based on measurements n To give effect to the provision for quality promotion as contained in the Standards Act – SABS is the home of the Design Institute

SOUTH AFRICAN BUREAU OF STANDARDS 5 OTHER OBJECTIVES n Improve South Africa’s competitiveness n Open markets for South Africa’s products n Improve quality for South Africa’s products n Efficient operations n Raise the quality level of the industry n To be a preferred employer n To protect the consumer

SOUTH AFRICAN BUREAU OF STANDARDS 6 THE SOUTH AFRICAN BUREAU OF STANDARDS n Traces roots to 1903 n Set up as Standardization Body in 1945 n + 50 Year history of success n Major Standardization Body in Africa n Review of South African Science System in 1995 – 1997 n “Peer Review” of SABS in 1997 n “SQAM Review

SOUTH AFRICAN BUREAU OF STANDARDS 7 1. SABS - CORPORATE 2. SABS – CORE ACTIVITIES 3. SABS – COMMERCIAL ACTIVITIES

SOUTH AFRICAN BUREAU OF STANDARDS 8 CORPORATE è CEO è Chief Financial Officer è Internal Audit è Marketing/ Communications è Human Resources

SOUTH AFRICAN BUREAU OF STANDARDS 9 CORE ACTIVITIES è Standards è Regulatory è Design Institute

SOUTH AFRICAN BUREAU OF STANDARDS 10 COMMERCIAL ACTIVITIES è Testing è Certification è Training

SOUTH AFRICAN BUREAU OF STANDARDS 11 COUNCIL STANDARDS Dr CJ Johnston REGULATORY AFFAIRS & CONSUMER PROTECTION Vacant DESIGN INSTITUTE AB Viljoen FINANCE CFO CO Guedes BATHEKGI CORPORATE SERVICES (PTY) LTD DB Paul (Acting) AUDIT BM van Wyk MARKETING & COMMUNICATION DB Baker/FK Mathivha QUESH SP Oliphant corporate divisions CO GUEDES (ACTING) Core Activities: BIODAT (PTY) LTD CC King (Acting) COAL & MINERAL TECHNOLOGIES (PTY) LTD J Bekker EUROTYPE TEST CENTRE (PTY) LTD J Janjic GLOBAL CONFORMITY SERVICES (PTY) LTD Dr E Meintjies TESTING & CONFORMITY SERVICES (PTY) LTD BIODAT (PTY) LTD RJ Carolissen (Acting) GGS GAMING (SA) (PTY) LTD companies Joint ventures Commercial Activities: SABS HOLDINGS (PTY) LTD Dr RJ Carolissen

SOUTH AFRICAN BUREAU OF STANDARDS 12 STANDARDS n Promote the interests of industry & the consumer through the provision of standards n Harmonizing national standards with international standards (ISO & IEC) n Leadership in SADCSTAN to further the harmonization of standards & technical regulations within SADC n Provide assistance & training to SADC/Africa standards bodies in support of NEPAD

SOUTH AFRICAN BUREAU OF STANDARDS 13 REGULATORY n Administration of technical regulations to ensure compliance to safety, health & the environment n The core business is to render a regulatory service within the framework of a Best Practice Model t Social Imperatives t Lower Technical Barriers to Trade t Improve investor’s confidence n Division is faced with some issues of credibility in the market n Clarification around the levy model will also clear explanation to industry t Will help in gaining the confidence of various industries

SOUTH AFRICAN BUREAU OF STANDARDS 14 DESIGN INSTITUTE n Promotion of SA Design n Division is currently involved in major strategies regarding a National Design Policy t Will guide design promotion alignment with the National System of Innovation & the objectives of NEPAD

SOUTH AFRICAN BUREAU OF STANDARDS 15 TESTING n Testing, calibration, inspection, monitoring & assessment services – t nationally & internationally n Accreditation in accordance with t ISO/IEC t OECD: GLP (Good Laboratory Practice) t ISO 9000 t SANAS

SOUTH AFRICAN BUREAU OF STANDARDS 16 n Testing & Conformity Services (Pty) Ltd t Wide range of tests u From microbiology to extra high voltage t 70 Labs in Pretoria & Olifantsfontein t 7 Labs in Cape Town & East London n Eurotype Test Centre (Pty) Ltd t Wide range of automotive tests – Pretoria t CoP Testing – East London

SOUTH AFRICAN BUREAU OF STANDARDS 17 CERTIFICATION n Provides consignment inspection, product & system certification services nationally & globally n Accreditation in accordance to: t SANAS t RvA t UKAS n Global Conformity Services (Pty) Ltd t System Certification u ISO / Eurepgap / HACCP / OHSAS n Coal & Mineral Technologies (Pty) Ltd t Quality solutions to the fuel, mineral & related industries

SOUTH AFRICAN BUREAU OF STANDARDS 18 TRAINING n Provides training in t Quality Management ISO 9000 series t Environmental Management ISO series t OHSAS series t HACCP SANS 1330 series t Information Security ISO series n SAATCA n SETA

SOUTH AFRICAN BUREAU OF STANDARDS 19 n Globalization & organizations such as BSI, SGS setting up businesses in the country n Sustainability of the economy t Unemployment t The effect of HIV/AIDS on the workforce n The increasing importance of Corporate Social Responsibility CHALLENGES FACING SABS

SOUTH AFRICAN BUREAU OF STANDARDS 20 n Rapid advances in information & communication technology n Regionalization, in particular the initiatives flowing from NEPAD & SADC n The growing debate on the supply of conformity assessment services by organizations linked to government vs those in the private sector

SOUTH AFRICAN BUREAU OF STANDARDS 21 SABS COMMERCIAL ACTIVITIES n The external revenue is expected to increase by 14%, made up of t 6% price increase t 8% customer growth n Increase in expenses are mainly t Personnel t Marketing

SOUTH AFRICAN BUREAU OF STANDARDS 22 KEY PRIORITIES n Sustainable Growth n Efficient, Transparent & fair Regulatory Services n Improvement in market access & exports, as facilitators & emissaries of trade n Support National & Regional Imperatives t BEE t SME t SADC t NEPAD n Improvement in Service Delivery

SOUTH AFRICAN BUREAU OF STANDARDS 23 BUDGET 2004/2005 R000’s Government Funding Science Vote DTI - Trade Metrology Standards Regulatory – include Trade Metrology Design Institute7 208 Corporate SAQI2 000 NETFA / NLVA1 600

SOUTH AFRICAN BUREAU OF STANDARDS 24 BUDGET ‘05 R000’s SABS CORE ACTIVITIES SABS HOLDINGS COMMERCIAL ADJTS I/GROUP PENSIONERS M/AID TOTAL GROUP External Revenue Core Funding Inter Group Revenue (91.364)0 Other Income Total Revenue (91.364) Personnel Costs(88.927)( )( ) Other Costs(96.671)( ) ( ) Total Expenditure( )( )91.364( ) Net Profit/ (Loss) before Taxation (14.764)13.615(25.500)(26.648)