1. | Onderstepoort Biological Products © | October 2013 Portfolio Committee 10 October 2013

2. Outline of Presentation | Onderstepoort Biological Products © | October 2013  Introduction  Historical perspective  Mandate, vision, mission and values.  Governance of OBP  Governance Report  Board of Directors  Board Committees  Executive Team  Organizational Structure  Performance Report  Key Strategic Thrusts and Outcomes  Non-financial Performance Highlights for 2012/13 FY  Workforce Profile  Gender and Race Distribution  Gender and Race employment equity targets  Skills Development

3. Outline of Presentation (continued) | Onderstepoort Biological Products © | October 2013  Financial Performance 2012/13  Financial Performance Highlights for 2012/13 FY  Financials for 2012/13 FY  Revenue and Gross Profit Percentage (%)  Equity and Cash Generated from Operations  Report of Auditor General  Our true customers

4. 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) 2005: State owned land and buildings officially transferred to OBP 2007:Achieved ISO 9001:2008 certification 2010Achieved a revenue milestone >R100 million 2011Achieved a revenue milestone >R150 million 2012: OBP received National Treasury funding of R496 million over the MTEF period. | Onderstepoort Biological Products © | October 2013

5. Mandate, vision, mission and values. | Onderstepoort Biological Products © | October 2013 Mandate: OBP exists to prevent and control animal diseases that impact food security, human health and livelihood Vision: To be a recognised 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. The primary objective of OBP is to produce quality vaccines for the prevention and control of livestock diseases in South Africa, Africa and globally.

6. Mandate, vision, mission and values. | Onderstepoort Biological Products © | October 2013 Values: A high level of integrity A high level of ethical standards High standards of quality Excellence in everything we do WE Accept that: Our employees a re our enduring advantage. As a state-owned company we have a responsibility to provide for the public as stakeholders We have a responsibility to society and to the environment

7. Governance of OBP State owned company (SOC) of the Department of Agriculture, Forestry and Fisheries (DAFF) 3B entity under Public Finance Management Act (PFMA) and Treasury Regulations 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 © | October 2013

8. Governance Report | Onderstepoort Biological Products © | October 2013

9. Board of Directors | Onderstepoort Biological Products © | October 2013 Director’s NameAppointed Dr Harold Adams (Chairperson)01/08/2011 Dr Patricia Hanekom03/03/2011 Dr Alfred Kgasi03/03/2011 Mr Norman Baloyi03/03/2011 Dr Steven Cornelius (CEO)03/03/2011 Dr Angela GrahamResigned

10. Board sub-committees | Onderstepoort Biological Products © | October 2013 The Board comprised of one Committee which met at various intervals in the 2012/13 financial year : CommitteeNo. of meetingsSpecial Meetings Board31 Sub-committee Risk & Audit4- All other matters that significantly impacted on the organisation were discussed at Board level

11. Board of Directors | Onderstepoort Biological Products © | October 2013 From left Mr JH Adams (Chairperson); Dr ST Cornelius ; Dr AT Kgasi; Mr NT Baloyi; Dr PE Hanekom; Ms ND Mobeng (Company Secretary); Appointed 1 March 2011

12. Executive Team | Onderstepoort Biological Products © | October 2013 Dr S. Cornelius ( Chief Executive Officer); Mr M. Gololo (Chief Financial Officer); Ms N. Mobeng (General Manager: Legal, Compliance and Company Secretary); Dr T. Smit (Chief Operations Officer); Ms M Ramutle (Human Resources Executive; Dr J. Modumo (Business Development Officer); Mr P. Pieterson (Quality Executive); Dr J. Verwey (Acting Chief Scientific Officer)

13. Organisational Structure | Onderstepoort Biological Products © | October 2013

14. Performance Report | Onderstepoort Biological Products © | October 2013

15. Key Strategic Thrusts and Outcomes | Onderstepoort Biological Products © | October 2013

16. Key Strategic Thrusts and Outcomes continued | Onderstepoort Biological Products © | October 2013

17. Non-financial performance highlights for 2012/13 FY | Onderstepoort Biological Products © | October 2013 Allocation of R492m over the MTEF from Treasury for the upgrade and modernization of OBP. Allocation of R34m from the Tshwane Animal Health Cluster (an initiative of the Technology Innovation Agency). Review of the strategic direction of OBP. ISO 9001:2008 successfully maintained. The Quality Assurance Department continued with the implementation of ISO 17025:2005. Various activities to improving the production efficiency were implemented in the various production and packaging departments. A plan was initiated to upgrade and replace various critical equipment in line with the MTEF allocation. The R&D section solidified relationships with local and international research institutes, through collaborative research projects. OBP’s market share remained relatively unchanged although the market and revenue declined substantially.

18. Workforce Profile | Onderstepoort Biological Products © | October 2013 Occupational Levels MaleFemaleTotal ACIWACIW Top Management010000001 Executive Management 200120016 Management4215400117 Skilled/advanced operational 25206 10867 Semi-skilled300022800767 Basic skilled20000900029 TOTAL PERMANENT 815114681017187 Temporary employees 6000300029 GRAND TOTAL875114711017198

19. Training and Skills development | Onderstepoort Biological Products © | October 2013 Occupational LevelsMaleFemaleTotal ACIWACIW Top Management010000001 Executive Management 100120015 Management4215400117 Skilled/advanced operational 222032110649 Semi-skilled23000800757 Basic skilled18000300026 Total685111621015163

20. | Onderstepoort Biological Products © | October 2013 Financial Report

21. Financial Performance Highlights for 2012/13 FY o Revenue o Decreased from R98.4 to R 89.4 million o Cost of sales o Dropped from R37 to R31 million. o Capital expenditure o Approximately R20m additional costs were incurred in upgrading the facility. o Operating expenses o Increased from R62m to R73m o Investment income o Dropped from 7m to R3m due to the drop in reserves. | Onderstepoort Biological Products © | October 2013

22. Financials – 2012/13 Account20122013 R ’000 ActualBudgetActual Revenue98 402119 87089 032 Cost of sales37 93243 98231 595 Gross Profit60 47175 88857 437 GROSS PROFIT %616365 Operating income3 2426751 946 Total expenses76 15275 96490 701 Operating profit (Loss)(12 439)599(31 317) OPERATING LOSS %130.535 Other income9 5064 0606 921 Profit (Loss) before tax(2 934)4 659(24 396) Taxation4541 3052 956 Net loss(3 388)3 355(21 440) Revenue R 30,8 million below budget R 9, 4 million previous year sales Expenses 19% increase in expenses vs. 9,5% decrease in revenue Water and lights Audit fees (Internal audit) Repairs and maintenance | Onderstepoort Biological Products © | October 2013

23. Show in graph format your Revenue and loss Percentage (%) | Onderstepoort Biological Products © | October 2013

24. Equity and Cash Generated from Operations | Onderstepoort Biological Products © | October 2013

25. Report of Auditor General | Onderstepoort Biological Products © | October 2013 OBP was audited by the Auditor General in 2012/13 FY Unqualified audit opinion –Two years in a row Achieving all the predetermined objectives still remain a challenge but improved significantly year on year.

26. | Onderstepoort Biological Products © | October 2013 Our true customers

27. | Onderstepoort Biological Products © | October 2013 THANK YOU