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

2. 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

3. 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.”

4. 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

5. 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

6. 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 - 1998

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

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

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

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

11. 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

12. 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

13. 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

14. 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

15. 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 17025 t OECD: GLP (Good Laboratory Practice) t ISO 9000 t SANAS

16. 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

17. 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

18. SOUTH AFRICAN BUREAU OF STANDARDS 18 TRAINING n Provides training in t Quality Management ISO 9000 series t Environmental Management ISO 14000 series t OHSAS 18000 series t HACCP SANS 1330 series t Information Security ISO 17799 series n SAATCA n SETA

19. 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

20. 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

21. 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

22. 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

23. SOUTH AFRICAN BUREAU OF STANDARDS 23 BUDGET 2004/2005 R000’s Government Funding Science Vote98 099 DTI - Trade Metrology9 000 107 099 Standards49 548 Regulatory – include Trade Metrology34 163 Design Institute7 208 Corporate12 580 SAQI2 000 NETFA / NLVA1 600

24. 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 Revenue55.529276.141331.670 Core Funding107.099 Inter Group Revenue7.48283.882(91.364)0 Other Income7246.2126.936 Total Revenue170.834366.235(91.364)445.705 Personnel Costs(88.927)(175.996)(264.923) Other Costs(96.671)(176.624)116.864(207.431) Total Expenditure(185.598)(352.620)91.364(472.353) Net Profit/ (Loss) before Taxation (14.764)13.615(25.500)(26.648)