1. July – December 2013 Biannual Economic and Capacity Survey 1

2. Firm distribution based on Annual Turnover (based on responses received) Category by gross annual income % of firms 0 – R1,5m 5% R1,5m – R11,5m 42% > R11,5m 52% Total 100.0% Category by gross annual income % of firms 0 – R1,5m 10.3% R1,5m – R11,5m 55.9% > R11,5m 33.8% Total 100.0% July – December 2013January – June 2013 2

3. Profile of respondents – by firm size Based on full and part time employment 3

4. Economic Impact Stable contribution of CESA Membership earnings as percentage of GDP Source: RBQN, CESA BECS, Industry Insight 4

5. Fee earnings vs Gross Fixed Capital Formation Rbn, real prices Source: RBQN, CESA BECS, Industry Insight 5

6. Infrastructure Allocations fall short of NDP target In order to achieve 10% target, need to double infrastructure allocations over the Medium Term Source: SARB Quarterly Bulletin, Budget Reviews

7. NDP specifies 30% target of GFCF to GDP Percentage of GDP NDP 2030 Target Projected to increase to 24% of GDP by 2016/17

8. Fee income, R billions Real 2000 prices Annualised | Deflator = CPI Source: CESA BECS 8

9. Real Fee income, Real prices Annual Change | Deflator = CPI Source: CESA BECS 9

10. CESA Confidence Index Source: CESA BECS 10

11. Business confidence vs CESA confidence Source: CESA BECS, BER 11

12. Real Fee income vs Industry confidence Income deflated using CPI Source: CESA BECS 12

13. CESA Labour Cost Indicator vs CPI Year on Year percentage change Source: CESA BECS 13

14. Employment vs REAL fee income (Rbn) (Deflated using the CPI & LCI) Source: CESA BECS CPI: Consumer price index LCI : Labour Cost Indicator 14

15. Employment vs Salary & Wage bill Source: CESA BECS 15

16. Discounting eased to an average of 24% Source: CESA BECS 16

17. Fee income earned by Sub-disciplines: % Share December 2013 Source: CESA BECS 17

18. Fee income earned by Sub-disciplines: % Share Change in market share in the last 12 months Source: CESA BECS 18

19. Fee income earned by TOP THREE disciplines: R bn Real 2000 prices Moving average (2 survey period): 2002 – 2013 Source: CESA BECS 19

20. Fee income earned by economic sector Percentage market share December 2012– December 2013 Source: CESA BECS 20

21. Profile of earnings by sector R22,2bn annualised current prices 21

22. Fee earnings by selected sector R billions, Real 2000 prices | Smoothed |2 survey average Source: CESA BECS 22

23. Fee income (Rm, Real prices) earned by key economic sectors June 2005 – December 2013 Source: CESA BECS 23

24. Provincial Market Share: December 2013 Vs change in market share from December 2012 GAIN market share GAIN market share Source: CESA BECS 24

25. Fee income earned by province (Rbn, real prices) High Capacity economies |TREND Annualised smoothed, average over 2 past surveys Source: CESA BECS 25

26. Fee income earned by province June 1999– June 2013| Rm real prices Source: CESA BECS 26

27. Fee income earned by province June 1999– June 2013| Rm real prices Source: CESA BECS 27

28. Provincial profile by economic sector where fee earnings >50% of total earnings Source: CESA BECS 28

29. Fee income earned (Real 2000 prices) High Capacity vs lower capacity provincial economies |Smoothed 84% of fees were earned in high capacity provinces Source: CESA BECS 29

30. Fee income earned : RSA vs EX-RSA R mill, Real 2000 prices | Annualised, smoothed 93% of fees were earned in South Africa Source: CESA BECS 30

31. Fee income earned by type of client Percentage share as at December 2013 Source: CESA BECS 31 Strong increase in contribution by central government

32. Fee income earned by type of client Percentage share Source: CESA BECS 32

33. Fee income earned by type of client R billion Real 2000 prices | Annualised, smoothed - avg over 2 survey periods Source: CESA BECS 33

34. Fee income earned by type of client R billions Real 2000 prices | Annualised, smoothed - average over 2 survey periods Source: CESA BECS 34

35. Competition in tendering Percentage of respondents that reported “Keen to Fierce” vs Fierce competition Source: CESA BECS 35

36. % of Firms wanting to increase staff Source: CESA BECS 36

37. Engineering Skills Shortfall Source: CESA BECS 37

38. Recruitment problems Source: CESA BECS 38

39. % of firms that reported experiencing problems recruiting the right people Source: CESA BECS 39

40. Bursaries Increased to 1.6 percentage of the Salary and Wage bill Source: CESA BECS Trend line – 2 year average 40

41. Bursaries The value of bursaries increased to an estimated R350m (current prices) R mill Real 2000 prices (Annualised) Source: CESA BECS 41

42. Training (Salaries and Direct Training Costs) Percentage of Payroll Data not available Source: CESA BECS Trend line – 2 year average 42

43. Training (Salaries and Direct Training Costs) Rbn, Real 2000 prices Data not available Source: CESA BECS Trend line – 2 year average 43

44. Training (Direct costs) Direct training costs as a percentage of payroll moderated to 0.6 percent Source: CESA BECS Trend line – 2 year average 44

45. Training (Direct costs) Rand millions, Real 2000 prices Source: CESA BECS Trend line – 2 year average 45

46. Industry Capacity Utilisation Of existing technical staff Source: CESA BECS 46

47. Summary of selected indicators by firm size category 47 Firm Size Category Capacity Utilisation of existing technical staff during the past 6 months % of Respondents that expect capacity utilisation of technical staff to increase over the next 6 months Average discount being offered by respondents in tendering situation to clients, benchmarked against the ECSA guideline fee scales % of Respondents that reported FIERCE Competition for work during the last six months Large 85.711.040.079.0 Medium 93.930.020.913.0 Small 101.145.019.822.0 Micro 81.826.026.513.0 Industry Average 91.815.0 (Weighted)24.064.4 Source: CESA BECS

48. Total fee income outstanding for longer than 90 days increase in the last six months of 2013: Percentage of total fee income earned Source: CESA BECS Trend line – 2 year average 48

49. Escalation trends Year-on-Year Percentage Change CPI Basket Revised in January 2013 Forecasts based on latest Treasury estimates (Budget 2014/15 Source: Treasury estimates Budget 2014 49

50. Labour unit cost indicator Slows to an increase of 7% in the last 6 months of 2013 Year-on-Year % Change (Smoothed) Source: CESA BECS 50

51. Labour unit cost indicator Annual Average Year-on-Year Percentage Change Source: CESA BECS 51

52. CESA labour costs outpace CPI 52

53. Typical Employment Breakdown July – December 2013 Source: CESA BECS 53

54. Overall Employment Breakdown, by race December 2007– June 2013 Source: CESA BECS 54

55. Employment profile Black only (excluding Asian / Coloureds) representation of total employment % Share of total employment Source: CESA BECS 55

56. Changing profile of female engineers 56

57. Executive Staff profile Source: CESA BECS 57

58. Executive Staff: % Share of total employment PTY, CC & Partnerships Source: CESA BECS 58

59. Black Executive Staff : (including Asian and Coloured) % Share of total Executive Staff Source: CESA BECS 59

60. African (Black) Executive Staff as % of total Executive | December 2008 – June 2013 Source: CESA BECS 60

61. Quality Management System Source: CESA BECS 61

62. ISO 9001:2008 Certificate Source: CESA BECS 62

63. Thank you www.cesa.co.za Tel: 011 463 2022 63