1. Annual Report Presentation to Portfolio Committee on
SABS 2010/11
Annual Report Presentation to Portfolio Committee on
Trade and Industry
12 October 2011

2. Outline Legislative framework Strategic Plan Objectives Highlights
Performance scores against business plan targets
Summary income statements for the year ended 31 March 2011
Statements of financial position as at 31 March 2011
Things we are busy with
Conclusion

3. The Legislative Framework
Established by the Standards Act of 1945 (Act No. 24 of 1945)
Continues to operate under Standards Act of 2008 (Act No.8 of 2008)

4. The Legislative Framework
Act stipulates the following objectives for SABS:
(a) develop, promote and maintain South African National Standards;
(b) promote quality in connection with commodities, products and services;
(c) render conformity assessment services and matters connected therewith.

5. The Legislative Framework
SABS is a schedule 3B Entity in accordance with PFMA
Received R156.8 m core funding from DTI
Generated total R394.5 m external revenue

6. Our rich history
Standardisation activities in South Africa date back to early 1900s
SABS formally established in 1945
Original SABS offerings included:
Development of national standards
Testing
Certification (SABS Mark)
Regulatory functions (compulsory specs)
Training

7. Strategic Plan Objectives
To gain trust in our value-added standardization and conformity assessment services by equivalent peer organizations, and by both domestic and foreign markets
Broader participation in and access to the national standardization process and services
Standards that support industrial policy action plan, e.g. IPAP
Growth to support the sustainability of SABS services
Pool of competent staff for SABS needs

8. Highlights
Embarked on implementation of SABS five-year strategy for last year
Early fruits of the new five-year strategy include critical mass of new management capabilities to drive service delivery

9. Highlights continued Specific programmes include:
The establishment of the SABS Academy
Socio-impacts standards development operating model
Implementation of the Enterprise Project Management Office (EPMO)
Centralised customer service interface, specifically
customer relationship management (CRM)
laboratory implementation management system (LIMS)

10. Performance scores against business plan numerical targets
Performance parameters
Annual Target
Actual Performance
Reasons for variance from targets
Standards
South African National Standards (SANS) produced
650
593
Focus shifted from quantity to focus on relevance. However, IPAP requirements for standards were still met
SANS alignment with international standards
75%
80%
Target exceeded
Sales of standards
R19,263,000
R16,750,000
Web-based IT tools to help with numbers were not delivered on time

11. Performance scores continued
Performance parameters
Annual Target
Actual Performance
Reasons for variance from targets
Conformity Assessments
Investigations, tests & services revenue
R218,797,511
R197,255,000
On-going impact of 2008 recession; some of the new labs not functioning optimally due to failing equipment & lab conditions
Product & system certification revenue
R188,285,870
R180,548,000
Target exceeded
No. of accredited labs 67
On-going impact of 2008 recession
No. of certification schemes 19 24
Target exceeded (6 accredited)
No. of test reports
575,000
412,539
Impacted by lower demand for the services

12. Summary Income statements for the year ended 31 March 2011
2010
Commercial revenue
394,553
390,743
Government grant
156,881
134,852
Expenditure
529,275
516,577
Profit for the year
54,518
46,818

13. Statements of financial position as at 31 March 2011
2010
Property, plant and equipment
253,825
169,901
Investment properties
10,896
11,337
Intangibles
9,845
17,542
Total available-for-sale investments
293,553
203,359
Deferred tax
21,116
23,905
Current assets excluding cash
56,180
52,968
Cash and cash equivalents
190,447
122,162
Total assets
835,862
601,174
Capital and reserves
445,246
384,679
Interest bearing borrowings
14,914
15,703
Other liabilities
253,437
100,204
Current liabilities
122,265
100,588
Total equity and liabilities

14. Things we are busy with
New building for laboratories is almost complete
Modernisation of the organisation – Board has released R100m capex for new equipment
Improved engagement with industry bodies
Role of the SABS Mark reinforced in industry; confirmation that South Africa still wants SABS services

15. Conclusion SABS performed well in 2010/11 financial year
Maintained our clean audit status
Made higher profit than expected
The strategic direction for the next five years is now established to better service the public and industry

16. Dr. B. Mehlomakulu, CEO SABS Ms Elis Lefteris, Acting CFO SABS
The end
Thank you.
Dr. B. Mehlomakulu, CEO SABS
Tel
Ms Elis Lefteris, Acting CFO SABS
Tel