Agrément South Africa PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE FOR THE DEPARTMENT OF PUBLIC WORKS Strategic Plans, Annual Performance Plans and Budgets for the 2013/14 financial year On 24 April 2013 Saturday, 12 September Slide 1 of 44

Vision & Mission  Vision To-be world class technical Assessment Agency  Mission To promote the government’s objectives of economic development, good governance and raising living standards and prosperity in South Africa. This will be achieved by encouraging and facilitating the use of innovative and non-standard construction products through its certification scheme thereby capitalising on the benefits to be gained. Saturday, 12 September Slide 2 of 44

Impact and Achievements Saturday, 12 September 2015  Exceeded all projections of outputs to date  Aligns Strategy to support Key priority areas of Government & DPW: Unemployment, Poverty & Inequality – Triple Challenge. The New Growth Path sets a goal of 5 million new jobs by 2020; identifies structural problems in the economy to be overcome and points to opportunities in specific sectors and markets (“jobs drivers”). The 1st jobs driver is infrastructure: laying the basis for higher growth, inclusivity and job creation. Saturday, 12 September Slide 3 of 44

Saturday, 12 September Slide 4 of 44 SIP’s & National Development Plan 2030

Saturday, 12 September Slide 5 of 44 Recommendations SIP’s & NPD Vision 2030  Strengthening broader technical capacity, hence for Agrément;  Review of the ‘technical infrastructure’ supporting testing and certification in the building & construction industry  scope must include building regulations, codes & certification and supporting infrastructure  R&D infrastructure – other than as support infrastructure to building regulations, codes and certification, and supporting infrastructure  The 17 Strategic Integrated Projects (SIPs). The SIPs cover a range of economic and social infrastructure. All nine provinces are covered, with emphasis on poorer provinces.

Saturday, 12 September Slide 6 of 44  Create Jobs: Create 11 million more jobs by 2030:  Lower the cost of doing business and costs for households  Expand Infrastructure  Speed up and expand renewable energy and waste recycling & ensure buildings meet energy-efficiency standards  Transform urban and rural spaces: Stop building houses on poorly located land and shift more resources to upgrading informal settlements, provided that they are in areas close to jobs A government that works well doesn’t just deliver more houses. It does more than that. It makes it possible for people to build or buy their own houses SIP’s & National Development Plan Vision 2030

Board Technical Committee Technical Agency Agrément South Africa Industry Technical Experts Organisational structure Saturday, 12 September Slide 7 of 44

Saturday, 12 September Slide 8 of 44 Governance  Annual report 2012 tabled in parliament 29 th September 2012  The Minister of public Works approved the Agrément South Africa’s 2013/14 – 2017/18 strategic plan  Strategic and Annual Performance Plan 2013/14 – 2017/18 was delivered to the Parliamentary Stores in March 2013 for tabling  Board of Agrément South Africa conducts oversight on Agency operations  The Chairman and the members of the Board of Agrément South Africa are duly appointed by the Minister of Public Works.  By undertaking technical assessments of innovative systems for and on behalf of the Government, Agrément South Africa has made a great contribution in the safe introduction of innovative technologies in the country with commensurate benefits.

Saturday, 12 September Slide 9 of 44 Governance Matters: Values  Agrément South Africa has excellent systems, processes & linkages with global best practice.  Agrément South Africa is well governed with strong control systems.  The Board addresses issues of corporate governance to ensure compliance with treasury & national requirements.  This ensures proper fiduciary management within the Agrément South Africa.

Saturday, 12 September Slide 10 of 44 Board Governance  8 Board members.  Appointed for a period of three years.  Board Chairperson and Board members are appointed by the Minister of Public Works. Current Chair is Mr. Pepi Silinga.  Strategic planning session held annually.  The Board of Agrément holds at least four meetings in a year  Board focussed on consolidating its previous strategic plans and moving the Agency forward.  The Board's Technical sub-committee focused on key objectives & ensured Agrément South Africa was well governed.  Agrément’s financial statements are audited and received a clean audit report

Ms Nteboheng Ngcobo MBA, Civil Engineering Lecturer, University of Johannesburg Mr Mninawe Pepi Silinga CEO Coega Development Corporation Dr Jeffrey Mahachi Executive Director NHBRC Mr MF Makamo Manager SABS Mr Hans Ittmann Ex-Director CSIR Ms Mariana Marneweck Manager NRCS Ms Adelaide Ranape Legal Manager WBHO Mr DC Fredericks Managing Director OHS E-Consulting Slide 11 of 44

Saturday, 12 September Slide 12 of 44 Highlights of Performance 1  Continuing to Maintain SANS ISO9001 certification.  Enhancing the technical skills of Agrément South Africa to ensure competence in handling complex technical assessments.  Continued utilisation of in-house specialist laboratory testing equipment.  Retaining in-house, highly-skilled technical experts to provide expert opinions in interpreting laboratory analysis and tests.

Saturday, 12 September Slide 13 of 44 Typical Product Development Cycle Saturday, 12 September 2015 BUILT ENV. PROFESSIONALS

Saturday, 12 September Slide 14 of 44 Transformation Percentage of staff either black or female: 92%  Agrément South Africa continued its strong emphasis on the development of human resources to enhance the skills level and efficiency of technical staff.  The technical committee has improved hugely in terms of both the number and skill of experts.  Transformation within the Agency has been addressed. No.% Black Females434% Black Males650% White Males18% White Females18% Total12100%

Saturday, 12 September Slide 15 of 44 A requirement for certification by Agrément South Africa:  Is that each certificate holder has a quality management system in place that is documented in a quality manual.  The quality management system and the implementation thereof as described in the quality manual must be approved by Agrément South Africa.  No certificate will be granted until a satisfactory quality manual has been received and the quality management system approved by the Board of Agrément South Africa.  The applicant must comply with Agrément South Africa’s quality management system which is broadly based on the SANS 9001: Quality management system.  Assures credibility of the certificate. Quality Management System

Saturday, 12 September Slide 16 of 44 Concept & Element To ensure that all factors relating to the validity of certificate are systematically managed so that Agrément certification maintains its credibility Conformance monitoring (ongoing quality inspection and reporting) and consequential corrective actions Periodic validity review and consequential decision-taking Validity review

Saturday, 12 September Slide 17 of 44 The certificate holder must include, and elaborate on, the following for manufacturing and erection/installation processes, where applicable:  management responsibility  contract review  design control  purchasing  process control  inspections, testing and measuring equipment  control of non-conforming products  corrective and preventive action  product identification, control and traceability  control of records  handling, storage, packaging and transportation  training  internal quality audit. Implementation

Saturday, 12 September Slide 18 of 44 Results for 2012/2013 Actual 2010/2011 Actual 2011/2012 Actual 2012/2013 Applications received: Evaluation offers made: Evaluation offers accepted: Certificates issued: Certified systems under custodianship: □ Building products: □ Building systems: □ Roads products: Board’s meetings:

Saturday, 12 September Slide 19 of 44 Target 2012/ /092009/102010/112011/122012/13 Applications received: Evaluation offers made: Evaluation offers accepted: Certificates issued:  Building products:  Building systems:  Roads products: No. of Board meetings Technical Outputs (Certificates Approved)

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Saturday, 12 September Slide 25 of 44 Technical Outputs 2009/102010/112011/122012/13 Total Income Total Expenses Running Costs (Admin) Human Resources (incl Perform Bonus) Overhead Costs Depreciation Shared Services Costs Executive Levies Margin before Interest Interest Nett Margin

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Agrément South Africa [R'000] MTEF Estimates 2013/142014/152015/162016/172017/18 External Income Other Income Total Income Human Resources Pensionable Salaries Service Bonus Casual Employees Car Allowance Contribution Leave Gratuity Pension Fund Contribution Medical aid Other (UIF, Skills Dev Levy) Running Costs Quality Management Building, Equipment Repair & Maintenance Stationery Other Technical Assessments Costs Agency Operating Expenses Year-end Accruals Other Costs Depreciation Indirect Cost Recovery Indirect Cost Recovery Unit Total Costs Surplus (loss) before Performance Bonus Interest Income Performance Bonus NET MARGIN AFTER INTEREST

Saturday, 12 September Slide 32 of 44 MTEF Transfer Amounts in Thousands of rand MTEF Transfer Amounts2009/102010/112011/122012/132013/14 Agrément South Africa Percentage Increase 5%

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Saturday, 12 September Slide 34 of 44 Financial statements  Agrément South Africa (Agency) operates under ministerial delegation of authority from the Minister of Public Works.  The grant funding for the Agency is channeled from the Department of Public Works (DPW) to the CSIR.  The funds are ring fenced within the CSIR Built Environment Unit in a separate Competence Area.  The Agency’s transactions are subject to the policies, procedures and governance processes of the CSIR.  The Agency is audited as part of the CSIR Built Environment Unit.  The CSIR has received an unqualified audit report for the last few years and has been hailed as an example of good financial management.

IPT World Federation of Technical Assessment Organizations CSIRO VTT TZUS ETA CCMC CSTB EMI RT NBRI ICITE HOWTEC BCJ CLB BRANZ NBI ITB LNEC INCERC FCC IETcc BBA ICC ASA ABCB Saturday, 12 September Slide 35 of 44

What is WFTAO WFTAO is the World Federation of Technical Assessment Organisations, a worldwide network for co-ordinating and facilitating the technical assessment of innovation in the construction field. WFTAO comprises officially recognised national bodies active in the field of technical assessments for construction products and systems. WFTAO currently has members from twenty-one countries across the global market.Saturday, 12 September Slide 36 of 44

What service does WFTAO offer? The members of WFTAO deliver favourable technical assessments* of the fitness for use and continuing quality of innovative products and systems that deviate from established standard specifications. A technical assessment in the sense of WFTAO is an authoritative favourable declaration of technical fitness for an intended use of an innovative or non- standardised construction product, service or process.Saturday, 12 September Slide 37 of 44

Primary objective of WFTAO is to facilitate the transfer of national products to the global marketplace through the acceptance of technical assessments delivered by its members.Saturday, 12 September Slide 38 of 44

Assessment delivered by a WFTAO member will Provide a means of demonstrating the fitness for purpose of the product with building regulations Be more readily accepted by building control personnel Show that the holder’s manufacturing and QA systems meet high standards Save valuable selling time, by easing acceptance of new products in a conservative market Provide a good opportunity for press coverage for the holders to use the distinctive WFTAO logo on advertisementsSaturday, 12 September Slide 39 of 44

Technical Outputs 1Saturday, 12 September Slide 40 of 44 1Ecobeam Building System 2Freyssinet Armoured Expansion Bridge Deck Joints 3SARDA Building System 4SIPWALL Building System (Automa) 5Supreme Homes Building System 6Cellular Concrete Building System 7Africooker 8BSIMAC 9 Energy Simulation 9Designbuilder Energy Analysis Software 10Pro-Phalt Infra Red Road Repair System

Technical Outputs 1Saturday, 12 September Slide 41 of 44 11Readykit Building System 12Uvuyo Building System 13Tutungeni Building System 14Plastermax 15Protea Building System 16Stuccomax 17Dandong-City Sandwich Wall Panel Building System 18Harmili Building System 19Ikhaya Future House Building Systems (Amendment) 20Ikhaya Future House Double Storey Building Systems(Amendment)

Technical Outputs 1Saturday, 12 September Slide 42 of 44 21Connovate Modular Housing Building System 22Spunsualtion Illumina Roofing Radiant Barrier 23UCO Ardex Building System 24Vela Steel Building System (Amendment) 25Lepa Building System (Amendment) 26Calcamite Water and Liquid Storage Tanks 27Mega Grip Coating System 28Valamanzi Coating System 29Oceansafe Block Building System 30JojoSeptic Tanks (Amendment) 31Jojo Liquid Storage Tanks (Amendment)

Challenges & Great Opportunities Juristic persona through Legislative Process Delegated to the Chairperson of the Board of Agrément South Africa, when acting in conjunction with the wishes of the Board. Strictly Enforcement of building control legislation. Enhancing authority of Agrément South Africa by giving it legal mandate.Saturday, 12 September Slide 43 of 44

Thank you… for Achieving excellent results TEAM: Together Everyone Achieves More SUPPORT EFFORT GOAL Saturday, 12 September Slide 44 of 44