1. PUBLIC ENTERPRISES 2008-2011 STRATEGIC PLAN AND FINANCIAL OVERVIEW
PROGRAMME 4: MANUFACTURING
STRATEGIC PLAN AND FINANCIAL OVERVIEW
27-29 FEBRUARY 2008

2. PROGRAMME 4 CONTENTS Purpose and measurable objectives
Planned activities
Budget

3. PROGRAMME 4 PURPOSE & MEASURABLE OBJECTIVES
The Purpose of the Manufacturing Division is to:
Analyse SOE strategies against Government’s strategic intent.
Develop proposals around how the SOE can play a catalytic role in the development of the manufacturing cluster.
Monitor and advise on SOE financial and operational performance.
Measurable objective:
Strategies and structures for SOE and the industries in which they operate that will ensure delivery on the government’s economic growth objectives

4. KEY ACTIVITIES FOR THE YEAR SUB-PROGRAMME: DEFENCE
Activity / Project
Critical Path Activities
Time Required
Due Date
Output
INVESTMENT MANAGEMENT
Shareholder’s Compact
2008/09
Strategic Intent Statement and KPI’s
Closure on compact
4 weeks
23 April 08
Memo
Input to Compact
Board signature
Monthly Report
Analysis of group:
Financial performance
Strategy implementation
Operations
2 weeks
2 weeks after
receipt
Monthly report memo
Quarterly Report (Q1)
Analysis of group and divisions:
1 page investor advisory to Board
2 weeks
29/08/2008
Quarterly Report Memo
(note as a quarter report
and monthly report are
often combined).
Quarterly Report (Q2)
As above
28/11/2008
Quarterly Report (Q3)
28/02/2009
Quarterly Report (Q4)
29/05/2009
DPE Board Presentation
Presentation to DPE Board
1 week
A week
after
Presentation to the DPE
Board
Dashboard
Populating and updating data
Quarterly
Updated Dashboard
AGM
Annual review:
Input into AGM agenda
Review board composition
Review of:
3 weeks
August 2008

5. KEY ACTIVITIES FOR THE YEAR SUB-PROGRAMME: DEFENCE (CONTD.)
Activity / Project
Critical Path Activities
Time Required
Due Date
Output
Corporate Plan
Analysis of:
Financial forecasts
Strategy Plan
1 month
23 March 2009
Memorandum on Corporate Plan
Input into assessment of PFMA section 54 applications
Economic/business assessment
3 weeks
Unknown
Section 54 (2) memo
INDUSTRY IMPACT
Determine Denel end-state
Convene Task Team
Cabinet Memo
2 months
31 March 08
NCACC Bill
Write-up enhancements to the Bill
15 April 2008
Bill
Assist with establishing DERI
Assist with the Bill
Assistance with Governance
Facilitate transfer of OTB to DERI
12 months
31 March 2009
DERI established

6. KEY ACTIVITIES FOR THE YEAR SUB-PROGRAMME: DEFENCE (CONTD.)
Activity / Project
Critical Path Activities
Time Required
Due Date
Output
Missiles Strategy
Develop strategy
Presentation to Ministers
4 months for research
and strategy
development
31 March 2009
Strategy documents and
increased export sales
Sector strategy
Review acquisition policy (see above)
Regulatory review (see above)
DoD supplier forums
Establish export council
3 months to establish fora
DoD supplier
forums and export
council established
AD-HOC
Referrals from Minister
and DG
Drafting of briefing and letter
On-going
Agreed dates
Decision or briefing
memo as required
Parliamentary
questions
Draft/review response
2 days: oral
5 days: written
Answer to
parliamentary
question
Review of Cab Memos
Research topic
Write-up memo
1 week
memo, as required
Articles
Article on economic/key issues
2 weeks
1 per annum
Article

7. KEY ACTIVITIES FOR THE YEAR SUB-PROGRAMME: FORESTRY
Activity / Project
Critical Path Activities
Time Required
Due Date
Output
INVESTMENT MANAGEMENT
Shareholder’s Compact
Preparation of Shareholders Compact
Strategic Intent Statement and KPI’s
Closure of Compact
4 weeks
23 April 2008
Memo
Input to Compact
Board signature
Quarterly Report (Q1)
Analysis of Quarterly Reports
Financial performance
Sustainable forestry management
Maintenance of shareholder value
1 page investor advisory to Board
2 weeks
29/08/2008
Quarterly Report (Q2)
As above
28/11/2008
Quarterly Report (Q3)
28/02/2009
Quarterly Report (Q4)
29/05/2009
DPE Board presentation
1 week
Quarterly
Board pack
Dashboard
Populating and updating data
Updated Dashboard
AGM
Annual Review:
Input into AGM Agenda
Review board composition
Review of:
3 weeks
August 2008
Approval of decision memo by DG and Minister

8. KEY ACTIVITIES FOR THE YEAR SUB-PROGRAMME: FORESTRY (CONTD.)
Activity / Project
Critical Path Activities
Time Require
Due Date for
Output
Corporate Plan
Analysis of
financial targets
Sustainable forestry management
Maintenance of shareholder value
3 weeks
23 March 2009
Endorsement of SAFCOL’s Corporate Plan by the Minister
Input into assessment of PFMA Section 54 applications
Economic/business assessment
Unknown
Section 54 (2) memo
AD-HOC/SECTOR SUPPORT TO KLF TRANSACTION
Input into effective sale of KLF
Input to Land Claims issue
Provide economic inputs to LGRT on the transaction structure
Input in assessing transaction implementation
End of FY 08/09, as per Cabinet approval
Time line under review
Completed decision memos at the completion of each phase as contained in the transaction guidelines
Input into SAFCOL residual activities and projects
Make strategic inputs to LGRT on oversight over the KLF Lease
To be determined
Signed Lease Agreement
Oversight over the implementation of KLF’s new sawlog marketing policy
On-going
June 2008
Increased sector competition
Input into the orderly wind-down of SAFCOL
Make input on the closure of SAFCOL
SAFCOL discharged of all residual responsibilities, and closed down
Referrals from Minister and DG
Drafting of briefing and letter
Agreed dates
Decision or briefing memo as required
Parliamentary questions
Draft/review response
2 days: oral
5 days: written
Answer to parliamentary question
Review of Cab Memos
Research topic
Write-up memo
1 week
Articles
Article on economic/key issues
2 weeks
1 per annum
Article

9. PROGRAMME 4
BUDGET
ITEMS
R thousand
BUDGET 07/08
BUDGET 08/09
BUDGET 09/10
BUDGET 10/11
COMPENSATION OF EMPLOYEES
5 041
5 788
6 224
6 694
GOODS AND SERVICES
5 316
5 853
5 629
5910
TRANSFERS -
OTHER
CAPITAL 16
TOTAL
11 641
11 853
12 604
There is no significant increase in the operational budget for this Programme. The substantial decrease reflected over the period is due to Denel having received a transfer payment amounting to R billion in 2007/08, with no further transfers allocated over the MTEF period.

10. THANK YOU

11. PROGRAMME 4
BUDGET

12. PROGRAMME 4 BUDGET Notes to the budget
1. There is no significant increase in the operational budget for this Programme.
2. Other expenditure under goods and services is made up of venues and facilities, entertainment and catering.
3. Total budget for consultants, budgets and special services is going to be expended on the following:
Technical support to management
Contractor: financial
Sector strategy implementation
Missiles strategy
Technical support - forestry
4. The substantial decrease reflected over the period is due to Denel having received a transfer payment amounting to R billion in 2007/08, with no further transfers allocated over the MTEF period.