SOUTH AFRICAN BUREAU OF STANDARDS 2014/15 Q4 Report to the Parliamentary Portfolio Committee on Trade & Industry 18th August 2015 QUESTION: CELEBRATING 70 YEARS OF QUALITY ASSURANCE

CONTENTS INTRODUCTION OPERATIONAL HIGHLIGHTS 2014/15 Q4 REPORT 2014/15 INTRODUCTION OPERATIONAL HIGHLIGHTS 2014/15 PERFORMANCE VS PREDETERMINED OBJECTIVES FINANCIAL PERFORMANCE CELEBRATING 70 YEARS OF QUALITY ASSURANCE

RENEWAL AFTER 65 YEARS OF REGULATORY The SABS was established in terms of the Standards Act, 1945 (Act No. 24 of 1945) In 2008, the regulatory function of the SABS was removed - Standards Act No. 8 of 2008 and NRCS Act of 2008 SABS CONFIDENTIAL

SOLID FOUNDATION : 70 YEARS Sub headline ~1100 Employees ~ 100 Contract Employees ~130 Standards Development ~400 Laboratories ~350 Certification ~50 Training & Design Institute ~150 Corporate Services

Roles – International Platforms Sub headline SABS has customers in many countries and has key stakeholders that span the region, continent and the world.

25% - Gov. Grant 75% - Services income FULL VALUE CHAIN OF SERVICES Testing Government Services Certification Standards Development Training Design Institute 25% - Gov. Grant 75% - Services income

Roles – International Platforms Sub headline ISO Council IEC Council SADCSTAN Secretariat ISO TMB New CASCO Chair ARSO Council

OPERATIONAL INDICATORS Q4 REPORT 2014/15 CELEBRATING 70 YEARS OF QUALITY ASSURANCE

AUDITOR GENERAL’S REPORT Q4 REPORT 2014/15 THE SABS HAS ACHIEVED A CLEAN AUDIT FOR THE 2014/15 PERFORMANCE YEAR FOR THE THIRD CONSECUTIVE YEAR CELEBRATING 70 YEARS OF QUALITY ASSURANCE

OPERATIONAL INDICATORS Q4 REPORT 2014/15 Annual growth in revenue increased by 8% compared to only 6% in the previous year Expenditure increased by 5% as compared to the increase of 10% in the previous year CELEBRATING 70 YEARS OF QUALITY ASSURANCE

OPERATIONAL INDICATORS Q4 REPORT 2014/15 Published home- grown standards Number of SMME beneficiaries of the Design Institute programme CELEBRATING 70 YEARS OF QUALITY ASSURANCE

PERFORMANCE VS PREDETERMINED OBJECTIVES Q4 REPORT 2014/15 CELEBRATING 70 YEARS OF QUALITY ASSURANCE

OPERATIONAL INDICATORS Q4 REPORT 2014/15 An overall achievement of 81% (13 out of 16) of performance indicators in the business plan CELEBRATING 70 YEARS OF QUALITY ASSURANCE

STRATEGIC OBJECTIVE: GROWTH Q4 REPORT 2014/15 OUTPUT INDICATOR (S) 2014/15 Target Actual Comment on variance Revenue Sales revenue (million) Operating profit 580.2 3.7% 569.1 2.4% Lower volumes (except Certification) Revenue shortfall exerted dampening effect New Certification scheme 2 New schemes by year end Two Target met New Training courses 3 New courses by year end Three Home Grown Standards Number published 225 232 Target exceeded CELEBRATING 70 YEARS OF QUALITY ASSURANCE

STRATEGIC OBJECTIVE: PRODUCTIVITY Q4 REPORT 2014/15 Output Indicator (s) 2014/15 Target Actual Comment on variance Increase in compulsory specifications that can be tested at SABS Percentage that can be tested fully 80% Target met Implementation of Laboratory Information Management System (LIMS) Percentage of laboratories (36) on LIMS 100% 86% Technical problems, particularly in remote laboratories Reduced time for publication of standards Number of days required < 400 398 Target exceeded Modernisation of laboratory facilities Number of laboratories that are fully functional in the new building 9 CELEBRATING 70 YEARS OF QUALITY ASSURANCE

STRATEGIC OBJECTIVE: CUSTOMER/ STAKEHOLDER Q4 REPORT 2014/15 Output Indicator (s) 2014/15 Target Actual Comment on variance An improvement in customer and stakeholder relations Implementation of the actions in the customer & brand surveys Number of laboratories on the new CRM platform 80% 10 90% 15 Target exceeded Development of SMMEs Number of SMMEs for whom projects were developed and implemented 25 58 E-Committees that fully use the installed modules of the e-committee portal Number of committees 83% CELEBRATING 70 YEARS OF QUALITY ASSURANCE

STRATEGIC OBJECTIVES: COMPETENT & EMPOWERED EMPLOYEES Output Indicator (s) 2014/15 Target Actual Comment on variance Graduate & student internship programmes Number of graduates/ students on the internship programme intake 10 11 Target exceeded Leadership development programmes Number of managers who successfully complete a leadership development programme 50 59 Workforce capacity Vacancy rate of identified critical positions (out of total employee complement) < 7% < 3.4% CELEBRATING 70 YEARS OF QUALITY ASSURANCE

FINANCIAL PERFORMANCE Q4 REPORT 2014/15 CELEBRATING 70 YEARS OF QUALITY ASSURANCE

FINANCIAL OVERVIEW Revenue growth 8% for the full year Q4 REPORT 2014/15 Revenue growth 8% for the full year Total Expenses increased by 5% for the year Employee benefits increased by 12% for the year as result of the three year NEHAWU agreement Net profit of R32.2 million, 48% higher than prior year Total assets increased by R44 million Property, Plant and Equipment increased by R15 million CELEBRATING 70 YEARS OF QUALITY ASSURANCE

INCOME STATEMENT Q4 REPORT 2014/15 CELEBRATING 70 YEARS OF QUALITY ASSURANCE

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015 Q4 REPORT 2014/15 CELEBRATING 70 YEARS OF QUALITY ASSURANCE

CHALLENGES Baseline cut Q4 REPORT 2014/15 25% 23% 21% 24% Revenue growth has been slow. With increases in expenses (especially employee benefits), the revenue gap widens Risk of Treasury MTEF reduction in future CELEBRATING 70 YEARS OF QUALITY ASSURANCE

Are we optimally used in the economy? Role of the National Standards Bodies Q4 REPORT 2014/15 Are we optimally used in the economy? CELEBRATING 70 YEARS OF QUALITY ASSURANCE

THANK YOU QUESTION: 70 YEARS – GIVING YOU THE QUALITY EDGE