1. DENEL BUSINESS DEVELOPMENT FOCUS AREAS - 2010
2010 Objectives
Key Activities and Milestones
Deliverables
Ensure that Business Development is:
Aligned to the Denel Growth Strategy
Meets the needs of the different equity/ownership structures
Optimising the Group effort/synergy
Aligned to the Group Strategy Management process
Potential market identification and analysis - Complete
Group Business Development Portfolio – Developed
Stakeholder Relationship Mapping - Complete
Vertical and horizontal information flow – Process installed
Senior leadership symposium alignment - Completed
Engagement with external stakeholders on ‘rules of the game’ - Completed
Implemented Group-wide Business Development Portfolio, aligned to the changing business and market landscape
A tracking system to monitor and validate Business Development success across the Group
An energised business aiming for Growth opportunities in the appropriate markets
To achieve significant turnover growth
Benefits Case
Improved market intelligence
Optimising existing markets and new market penetration
Improved communications between all levels of Business Development and across Entities
Improved relationships with our key stakeholders
Improved collaboration between DCO and entity requirements to pursue revenue growth
Profitable turnover growth

2. CONSOLIDATED ORDER BOOK as at end August 2010

3. 2009/2010 TURNOVER PER REGION FOR DENEL
& ASSOCIATED COMPANIES

4. FINANCE HIGHLIGHTS

5. FINANCIAL TRENDS: 31 MARCH 2010
* Including associates

6. FINANCIAL TRENDS: 31 MARCH 2010

7. IMPACT OF DENEL ON SA

8. IMPACT OF DENEL ON SA KEY AREAS IMPACT National security
Strategic military independence of the RSA
Full life cycle support
Reduced cost of ownership
Foreign exchange savings
Integrity of South Africa’s defence stature - African Union and G20
Support for border protection
Peacekeeping & civilian campaigns
Products uniquely suited to the African theatre
MRO support
2010 FIFA World Cup and Rhino Poaching campaign
Crime prevention initiatives
Industrial strategy and competitiveness:
High tech. manufacturing
High value added exports
Skills development
Technology incubators
R1,4bn in export earnings in 2009/10
IP/knowledge creation and cross-leveraging in other industries eg:
Rail safety
SALT telescope
Telecoms
Automotive
Crime fighting
Total (R&D) investment in 2009/10: R1bn (2008/09: R1,2bn)
Major Capex spend in TMA, DSA, CZO and RDM 8 8

9. IMPACT OF DENEL ON SA (cont)
KEY AREAS
IMPACT
Skills development:
Supplier base
Technical skills
JIPSA
ASGISA
Quality jobs: sustainable
livelihoods
jobs supported in industry
CIRCA 70% of procurement from local suppliers
Stable skills pipeline
Denel Technical Academy: youth and artisan training
Engineering bursary, internship, Saturday Schools Programme and mentorship programmes
Environment:
Kyoto Protocol
ISO certification and compliance
High tech industries: clean air production
Advanced materials (composites) - reduction of carbon emissions by aircraft 9 9

10. DENEL’S HIGHLIGHTS Improvement in financial performance Transformation
Net loss reduced from R1.4bn in 2006 to R246m in 2010
Defence and security business generated profit of R200m from loss of R1.3bn in 2006
Cash burden reduced from R1bn to R416m in 2010
Transformation
Level 4 BBBEE rating
Living of values through CEO Forums, Top 100 SLS, and SLF’s
Improvement in programme management
Achieved 91.5% of technical milestones on DoD orders
Exemplary performance on A-Darter and Hoefyster programmes
International accreditations
Improvement in governance and compliance
Strengthened risk management and compliance
Effective internal audit and clean external audit
Introduce high performance culture
Management development programme
1400 people trained