1. KEY DEVELOPMENTS AND VISION FOR THE SECTOR IN THE KZN AUTO HUB ANDREW VELLEMAN Chairman Durban Automotive Cluster

2. INDUSTRY OVERVIEW One Third of South Africa’s Automotive Manufacturing Activity Takes place in KwaZulu Natal: 65 – 80 KZN Automotive Suppliers Span a Wide Range of Manufacturing Activities. The APDP Administration System shows that 32% of Value Addition in the SA OEM Supply Chains Takes Place in KZN. The Supply Base Provides Important Inputs Into the OEM Production Hubs in KZN, the Eastern Cape and Gauteng. KZN is the Home of Toyota SA Motors, SA’s Largest OEM. Medium and Heavy Commercial Production is Undertaken by Toyota SA Motors, MAN Truck & Bus and Bell Equipment. KZN Automotive Suppliers are Supporting All of the OEM’s within South Africa.

3. INDUSTRY OVERVIEW (Continued) Port (Ocean Freight) - The Proximity to the Durban Port is an Advantage for the Regional Sector in Terms of Material Inputs and Access to Export Markets. A New Port is Also Planned to Increase Competitive Advantage. Rail and Road - Sound Road and Rail Infrastructure Provides Strong Logistical Linkages to Gauteng and the Eastern Cape. Airport (Air Cargo) - The Dube Trade Port Has Been Established and Is Intended to be Approved as a Special Economic Zone (SEZ). Supplier Park - KZN is in the Process of Establishing a Supplier Park Increasing the Competitive Advantage for the Automotive Industry.

4. DURBAN AUTOMOTIVE CLUSTER OVERVIEW The DAC is a Public-Private Partnership (PPP) Between the Automotive Industry in KZN and the eThekwini Municipality that was Initiated in 2002. To Promote the Growth and Competitiveness of the KZN Automotive Manufacturing Sector. Vision To Establish Mutually Competitive Advantages and to Help the Automotive Manufacturing Sector to Overcome Generic Challenges. Mission Industry Manufacturing Value Added Growth of 100% in Real Terms Between 2012 and 2020. Objective

5. STRATEGIC FRAMEWORK Cost Competitiveness Access to Increased Scale of Production Access to Product & Process Technology Competitive Operating Efficiencies Competitive Skills Growth in Manufacturing Value Addition (MVA) Competitively priced input materials Competitively Priced Input Materials Enabling Infrastructure

6. INSTITUITIONAL FRAMEWORK Executive Committee Market & Technology Access Manufacturing Excellence Skills Development Infrastructure & Materials External Affairs Alignment and Collaboration Enabled Via: Local Government – Representation on Executive Committee. NAACAM – Executive Director Attendance at Executive Committee Meetings and Alignment of Regional Meetings. DTI, NAAMSA, NUMSA – Via Representation on ASCCI, Which is Constituted as a Partnership Between Suppliers and All Stakeholders. xx

7. Market & Tech. Access 1.APDP Readiness Training and Incentive Access Support. 2.Supported the Establishment of the Automotive Supply Chain Competitiveness Initiative (ASCCI). 3.Successfully Created Buyer-Supplier Localisation Interaction Platform via National Localisation Indaba. Manufacturing Excellence 1.Benchmarking and Intervention Planning Support Suppliers. 2.Lean Coaching Activities and Best Practice Study Tours. 3.Black Owned SME Business Excellence Support Skills Development 1.Management Development Programme (MDP) Established in Partnership With University of Stellenbosch – 50 Graduates over 4 years. 2.Extensive Graduate Engineer and Team Leader Training Activities. 3.Strategy and Training Activities to Support Improved B-BBEE Performance. Materials & Infrastructure 1.Materials Utilisation and Cost Saving Related Studies. 2.Energy Efficiency and Carbon Foot-Printing Assessments and Support. 3.Preferential Sea Freight Rate for Member Firms. HIGHLIGHTS

8. Market & Tech. Access 1.Improved Access to Sector and Firm-Level Growth Opportunities 2.Enable Global Technology Affiliations and Local Innovation Manufacturing Excellence 1.Improved Knowledge of Manufacturing Best Practices 2.Enable Effective Adoption of Manufacturing Best Practices 3.Black Owned SME Business Excellence Support Skills Development 1.Effective Skills Development Interventions 2.Application of Skills in the Workplace 3.Cross-Cutting Prioritisation of People-Related Aspects of B-BBEE Materials & Infrastructure 1.Improved Cost Competitiveness in Relation to Major Material Inputs 2.Support on Key Infrastructure and Logistics Projects VISION

9. THE WAY FORWARD… EHANCED COST COMPETITIVENESS LOCALISATION INDUSTRY GROWTH

10. THANK YOU ANDREW VELLEMAN Chairman Durban Automotive Cluster