1. 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 2015 www.agrement.co.za Slide 1 of 44

2. 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 2015 www.agrement.co.za Slide 2 of 44

3. 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 2015 www.agrement.co.za Slide 3 of 44

4. Saturday, 12 September 2015 www.agrement.co.za Slide 4 of 44 SIP’s & National Development Plan 2030

5. Saturday, 12 September 2015 www.agrement.co.za 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.

6. Saturday, 12 September 2015 www.agrement.co.za 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

7. Board Technical Committee Technical Agency Agrément South Africa Industry Technical Experts Organisational structure Saturday, 12 September 2015 www.agrement.co.za Slide 7 of 44

8. Saturday, 12 September 2015 www.agrement.co.za 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.

9. Saturday, 12 September 2015 www.agrement.co.za 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.

10. Saturday, 12 September 2015 www.agrement.co.za 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

11. 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

12. Saturday, 12 September 2015 www.agrement.co.za 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.

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

14. Saturday, 12 September 2015 www.agrement.co.za 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%

15. Saturday, 12 September 2015 www.agrement.co.za 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

16. Saturday, 12 September 2015 www.agrement.co.za 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

17. Saturday, 12 September 2015 www.agrement.co.za 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

18. Saturday, 12 September 2015 www.agrement.co.za 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: 29 24 19 15 84 98 15 3 36 33 16 20 94 102 16 4 33 30 24 31 95 116 17 4

19. Saturday, 12 September 2015 www.agrement.co.za Slide 19 of 44 Target 2012/13 2008/092009/102010/112011/122012/13 Applications received:1217 293633 Evaluation offers made:121615243330 Evaluation offers accepted:12 7191624 Certificates issued:129 152031  Building products:866571849495  Building systems:95708098102116  Roads products:151011151617 No. of Board meetings234344 Technical Outputs (Certificates Approved)

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25. Saturday, 12 September 2015 www.agrement.co.za Slide 25 of 44 Technical Outputs 2009/102010/112011/122012/13 Total Income8 737 4128 782 3339 778 9659 947 352 Total Expenses8 590 9758 550 7149 876 6459 957 313 Running Costs (Admin)2 538 9612 335 0751 929 3132 174 340 Human Resources (incl Perform Bonus)4 757 4914 640 5835 082 3985 069 820 Overhead Costs1 294 5231 575 056669 072695 917 Depreciation369 948375 056369 948439 947 Shared Services Costs480 601600 0001 290 492996 102 Executive Levies480 601600 000535 422581 187 Margin before Interest146 437231 619-97 680-9 961 Interest147 597107 570182 508185 755 Nett Margin294 034339 18984 828175 794

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31. Agrément South Africa [R'000] MTEF Estimates 2013/142014/152015/162016/172017/18 External Income 9 1219 73010 31410 93311 589 Other Income 1 5411 8391 9492 0662 190 Total Income 10 66211 56912 26312 99913 779 Human Resources 5 5506 0226 3836 7667 172 Pensionable Salaries 4 5214 9055 1995 5115 842 Service Bonus 202219232246260 Casual Employees 101109116123130 Car Allowance 5863677175 Contribution Leave Gratuity 95103109115122 Pension Fund Contribution 396429455482511 Medical aid 5358616569 Other (UIF, Skills Dev Levy) 125136144152162 Running Costs 2 6252 8493 0203 2013 393 Quality Management 432468497526558 Building, Equipment Repair & Maintenance 277300318337357 Stationery 828994100106 Other Technical Assessments Costs 462501531563597 Agency Operating Expenses 1 3581 4741 5621 6561 755 Year-end Accruals 1516171819 Other Costs 2 2552 4462 5932 7492 914 Depreciation 537582617654694 Indirect Cost Recovery 8599329881 0471 110 Indirect Cost Recovery Unit 8599329881 0471 110 Total Costs 10 43011 31711 99612 71613 479 Surplus (loss) before Performance Bonus 232252267283300 Interest Income 115125132140148 Performance Bonus 97106112119126 NET MARGIN AFTER INTEREST 250271287304323

32. Saturday, 12 September 2015 www.agrement.co.za Slide 32 of 44 MTEF Transfer Amounts in Thousands of rand MTEF Transfer Amounts2009/102010/112011/122012/132013/14 Agrément South Africa 7 504 7 879 8 273 8 687 9 121 Percentage Increase 5%

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34. Saturday, 12 September 2015 www.agrement.co.za 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.

35. 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 2015 www.agrement.co.za Slide 35 of 44

36. 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 2015 www.agrement.co.za Slide 36 of 44

37. 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 2015 www.agrement.co.za Slide 37 of 44

38. 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 2015 www.agrement.co.za Slide 38 of 44

39. 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 2015 www.agrement.co.za Slide 39 of 44

40. Technical Outputs 1Saturday, 12 September 2015 www.agrement.co.za 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

41. Technical Outputs 1Saturday, 12 September 2015 www.agrement.co.za 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)

42. Technical Outputs 1Saturday, 12 September 2015 www.agrement.co.za 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)

43. 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 2015 www.agrement.co.za Slide 43 of 44

44. Thank you… for Achieving excellent results TEAM: Together Everyone Achieves More SUPPORT EFFORT GOAL Saturday, 12 September 2015 www.agrement.co.za Slide 44 of 44