Report back to - Trade and Industry Portfolio Committee Presented by: Gert Gouws Chief Financial Officer Industrial Development Corporation of South Africa Ltd

Contents Vision, Mission and Core Strategies Organisational Structure Key Focus Areas Annual Highlights and Performance Financial Aspects Prospects for the Future

Vision ... “To be the primary driving force of commercially sustainable industrial development and innovation to the benefit of South and southern Africa”

Mission ... Contribute to the generation of balanced, sustainable economic growth in southern Africa Economically empower the southern African population Promote entrepreneurship through the building of competitive industries and enterprises based on sound business principles

Core Strategies ... 4 Providing risk capital to widest range of industrial projects Maintaining its financial independence internal profitability divestments from mature assets borrowings Identifying and supporting opportunities not yet addressed by the market Establishing local and global involvement & partnerships in projects that are rooted in or benefit SA and SADC Building upon and investing in human capital in ways that systematically and increasingly reflect the diversity of SA’s society

IDC’s Operational Structure ... 15 strategic business units (SBUs), each focussed on specific economic sectors CEO / President Khaya Ngqula Industrial Sectors Andile Reve Projects Jaco Kriek Service Sectors Raisibe Morathi Professional Services Geoffrey Qhena Finance and Funding Gert Gouws HR & Corporate Support Services Lesé Matlhape 21 departments are tasked with providing the necessary operational services to the SBUs Marketing & Corporate Affairs Neo Sowazi

IDC’s Focus Areas ... Empowering of emerging entrepreneurs Support manufacturing, tourism development, agro-industries and small-scale mining New initiatives: Development funding Public & private partnerships Energy sectors Continue with the establishment of internationally competitive, large, resource-based beneficiation projects and downstream value-added industries Regional (African) development

The IDC as a Regional Player … By acting as a catalyst for investments in productive capacity By identifying sound investment opportunities By assisting in the financing of exports of South African capital goods & services By providing consulting services

Highlights for 2001… 515 approvals with a total value of R9,3 billion (265 and R3,6 billion for July to December) Strengthening of IDC’s Treasury function through the appointment of a Corporate Treasurer Conclusion of an agreement on the restructuring of ISCOR and the sale of Saldanha Steel to ISCOR IDC’s portfolio outside South Africa increased to 47 projects in 16 countries from 30 in 9 countries at the beginning of the period Establishment of a Development Funding Department with a €59 million Risk Capital Facility from the EU Finalisation of the IDC mandate and IDC Act amendments Significant progress with the implementation of a new IT system to support the growth of IDC business

Performance: Approvals by SBU … Net after cancellations

Performance: Development Impact … Investment facilitated during 2001: Assisted in the creation of 20 000 new job opportunities (11 000 for July to December) Generated R10,5 billion of additional export earnings (R2,5 billion for July to December) Finance to empowerment companies represented 33% of the total number of approvals

Performance: Empowerment Financing… Credit facilities for delivery on government contracts Wholesale finance Warehousing of shares Take-overs and acquisitions Loan finance

Performance: SME Financing …

Performance: Regional Development … 47 projects in 16 countries plus... 19 export finance applications approved or under consideration equals ... Almost R7.6 billion in African approvals since 1998 Togo Spices Nigeria Telecoms DRC Copper & Cobalt Uganda Hydropower Kenya Railway Tanzania Tanzanite Bags Pharmaceuticals Sisal Moringa Health resort Ghana Bauxite and Alumina Shopping mall Soft drinks Angola Hotel (x2) Port expansion Dry docks Malawi Tea Hotel Shopping mall Electricity Zambia Copper (x2) Horti and floriculture Hotel Timber Roses Telecomms Mining equipment Clothing Madagascar Prawns Mauritius Sugar and power Tourism resort Namibia Table grapes Tantalite Sepiolite Bags Diamonds Mozambique Aluminium (x2) Titanium Cotton Sesame Sugar Hotel Brewery Timber Pallets Prawns Zimbabwe Platinum Botswana GSM pay phones Hydroponic farming Fencing Parkade Swaziland Wattle Distillery Leather tanning Roses Frozen foods Telecoms Lesotho Diamonds (x2)

Abridged Consolidated Income Statements for the 6 months Ended 31 December (R’mil) Six months to December 2001 2000 % Change Year 2001 Revenue Net operating income Net capital gains Income before equity accounted investments 1 723 545 2 576 3 121 (384) (2 583) 154 110 44 1 771 343 387 730 (322) - 408 47 361   3 59 566 328 19 3 679 787 1 772 2 559 (838) (1 900) (179) 79 (258) Equity accounted investments - Losses from ordinary operations - Exceptional impairment losses Net income/(loss) from operations Taxation Net attributable income/(loss)

Abridged Consolidated Balance Sheets as at 31 December (R’mil) 2001 2000 % Change 30 June 2001 Assets Cash and cash equivalents Loans, advances and investments Fixed assets Other assets Equity and Liabilities Capital and reserves Long term loans Other liabilities Debt/Equity ratio 1 680 28 144 1 621 1 795 33 240 24 390 7 371 1 479 30% 1 139 21 715 1 426 1 267 25 547 18 470 5 713 1 364 31%  47 30 14 42 32 29 8 1 740 23 382 1 422 1 421 27 965 20 896 5 713 1 356 27%

Analysis of Income/Loss

Strengthened Financial Base Excl. fair value revaluation Fair value revaluation Debt/Equity Ratio Capital and reserves

Prospects SME’s role in the economy expected to increase Regional development focus Public & Private Partnership Business Unit facilitation of infrastructural development