State-Owned Enterprises and Women’s Empowerment Briefing Session to the Portfolio Committee on 9 March 2005

Mr Eugene Martin Group Director: HR

CATEGORYHDIFEMALES Excom60%10% GMs – Divisions50%10% GMs – Corporate70%10% Middle Management50%10% Engineers50%10% Scientists50%10% Technicians50%10% Targets for the Group set in 2002

Denel Board of Directors 3/9 1/9 4/9 1/9

Total Female Strength 2002/2003

Total Female Strength 2003/2004

Total Female Strength 2004/2005

8

9

10

11

12

13

14

Overview of Training and Development of Females in Denel 1.Strategic Approach to Training of Females within Denel 2.Denel Employee Training 3.Youth Development 4.Bursaries / Study Loans 5.Experiential Training 6.Growth Targets in Critical Skills

Strategic Approach to Training of Females within Denel 1.Historical Legacy of Denel - Captured market – South African Defence Force - White male dominated - Very few females in engineering environment - largely secretarial, administration and support 2. Denel is committed to the training and development of females to enable them to play a larger role within the organisation, especially given its historical biases. 3. Present Strategy based on: - Changing the current entrenched mindset - Redress of past imbalance - Access to opportunities, learning and growth for all - Transformation of Denel as a SOE

Key Implementation Pointers 1.Entry of new personnel 2.Recognition of prior learning 3.Re-training 4.New training and development for females to become involved in core skills 5.Skills technology transfer programmes 6.Mentoring and coaching 7.Retention 8.Conditions of service to allow for an enabling environment for female learners

Denel Employee Core Training (Internal) Number of Females Trained in Internal Programmes in Denel Total Learners 208 WHITEAFRICANCOLOUREDASIAN Technical Management4010 Safety STTP1010 MSDP0110 Weapons7310 Security04130 Other Total

Youth Development WHITEAFRICANCOLOUREDASIAN DYFTP GET SET06100 Schools Outreach04500

DYFTP Results of Female Learners in 2004 Matric Results <40%50%60%70%80% Previous Final GR Final Exam Before and after interventions by the DYFTP in Maths and Science combined results Entry Level on Standard grade – Final results after DYFTP on Higher grade

Denel Schools Outreach Programme Focus on grade 10 – 12 learners from schools in deep rural areas Focus on Maths, Science, Life Skills and Language Literacy 10 and more students in each of the 9 Provinces 5 Males and 5 Females Development of Maths and Science educators (including female educators) in each school

Denel Bursary Programme Total Amount spent for Bursaries on Females = R2.4m WHITEAFRICANCOLOUREDASIAN Bursaries Study Loans01800 Internal and External Bursaries for Females Total Amount spent for Bursaries on Females = R2.1m TOTAL NO. OF FEMALE BURSARS FOR ENGINEERING = 133

Experiential Training Learnerships/Apprenticeships WHITEAFRICANCOLOUREDASIAN Learnerships02940 Apprenticeships52002 ABET02300

Apprenticeships and Learnerships Aircraft Avionician 10 Maintenance Electrician1 Fitter and Turner1 Aircraft Structures5 Aircraft Maintenance2 Spray Painter1 Information Technology Learnerships20 Chemical Engineering Learnerships5 Mechanical Engineering Learnerships4 Analytical Chemistry Learnerships4

Targets for CATEGORY OF TRAINING/DEVELOPMENT GROWTH % TARGET Technical Training60% Management and Leadership30% SHE20% Apprentices and Learnerships10% Marketing30% Skills Technology Transfer30% DYFTP50%

26 TARGET GROUPS Black Women Businesses (BWB) Persons living with disabilities Youth Other black suppliers 1

27 Increase BEE Spend by 10% Achieve 10% in BEE Spend. Actual YTD = 4% behind target. The year-end target is 20.93% Increase BEE Spend by 10%

28 BWB QUALIFICATION CRITERIA 100% BWB or 51% equity Day to day involvement in operation & Management, Decision making & risk taking

29 SUPPORT PROGRAMME BWB’s Payment Cycles. Within 30 working days Skills And Technology Transfer. Training may be given in areas such as finance, quality and production Tender Advice. Assistance to increase the capacity of such small suppliers in doing business with Denel shall be given.  Permitting price matching for set-aside portion on certain tenders as stipulated in the inquiry documents Reserving certain tenders either part or whole for BWB  Negotiating with BWB suppliers only, using cost plus reasonable profit mark-up.  Assist in negotiating discount with manufactures 1

30 PREFERENTIAL PROCUREMENT TO DATE R1.2 billion total procurement spent R 800 million local procurement 4% of Indirect Material spent - Women Owned companies 2% of spent on Direct Material - Women Owned Companies Indirect Material and Services - currently procured from BEE companies and 20% targeted towards BWB’s

31 ACCESS TO BUSINESS OPPORTUNITIES Business Opportunities Directory is in place Supplier information day planned for first quarter 2005/2006 Web page under development

32 Thank you