1. January – June 2014 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 35% R1,5m – R11,5m 46% > R11,5m 19% Total 100.0% July – December 2013January – June 2014 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 (Res, NonRes, Construction works) | Rbn, Constant 2005 prices Source: RBQN, CESA BECS, Industry Insight 5

6. Consulting Engineering Earnings Percentage of GDP / GFCF construction 6

7. Fee income, R billions Real 2000 prices Annualised | Deflator = CPI Source: CESA BECS 7

8. Real Fee income, Real prices Annual Change | Deflator = CPI Source: CESA BECS 8

9. CESA Confidence Index Source: CESA BECS 9

10. Business confidence vs CESA confidence Source: CESA BECS, BER 10

11. Real Fee income vs Industry confidence Income deflated using CPI Source: CESA BECS 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. Salary and wage bill slow amidst stable employment Source: CESA BECS 15

16. Salary and wage bill | Percentage of gross fee earnings Source: CESA BECS 16

17. Average Discounting rate Source: CESA BECS 17

18. Fee income earned by Sub-disciplines: % Share Source: CESA BECS 18

19. Fee income earned by Sub-disciplines: % Share Change in market share in the last 6 months Source: CESA BECS 19

20. Fee income earned by TOP THREE disciplines: R bn Real 2000 prices Moving average (2 survey period): 2002 – June 2014 Source: CESA BECS 20

21. Fee income earned by economic sector Percentage market share June 2013 – June 2014 Source: CESA BECS 21

22. Profile of earnings by sector R22bn annualised current prices 22

23. Fee earnings by selected sector R billions, Real 2000 prices | Smoothed |2 survey average Source: CESA BECS 23

24. Fee income (Rm, Real prices) earned by key economic sectors June 2005 – June 2014 Source: CESA BECS 24

25. Provincial Market Share: June 2014 Vs change in market share from June 2013 GAIN market share GAIN market share Source: CESA BECS 25

26. Fee income earned by province (Rbn, real prices) High Capacity economies |TREND Annualised smoothed, average over 2 past surveys Source: CESA BECS 26

27. Fee income earned by province June 1999– June 2014| Rm real prices Source: CESA BECS 27

28. Fee income earned by province June 1999– June 2014| Rm real prices Source: CESA BECS 28

29. Provincial profile by economic sector where fee earnings >50% of total earnings Source: CESA BECS 29

30. Fee income earned (Real 2000 prices) High Capacity vs lower capacity provincial economies |Smoothed 82% of fees were earned in high capacity provinces Source: CESA BECS 30

31. Contribution of high capacity provinces to total fee earnings Source: CESA BECS 31

32. Fee income earned : RSA vs EX-RSA R mill, Real 2000 prices | Annualised, smoothed 85% of fees were earned in South Africa Source: CESA BECS 32

33. Fee income earned by type of client Percentage share as at June 2014 Source: CESA BECS 33

34. Fee income earned by type of client Percentage share Source: CESA BECS 34

35. Fee income earned by type of client R billion Real 2000 prices | Annualised, smoothed - avg over 2 survey periods Source: CESA BECS 35

36. Fee income earned by type of client R billions Real 2000 prices | Annualised, smoothed - average over 2 survey periods Source: CESA BECS 36

37. Competition in tendering Percentage of respondents that reported “Keen to Fierce” vs Fierce competition Source: CESA BECS 37

38. % of Firms wanting to increase staff Source: CESA BECS 38

39. Engineering Skills Shortfall Source: CESA BECS 39

40. Recruitment problems Source: CESA BECS 40

41. % of firms that reported experiencing problems recruiting the right people Source: CESA BECS 41

42. Bursaries Stabilized back to 0.4% in June 2014 Survey Source: CESA BECS Trend line – 2 year average 42

43. Bursaries R mill Real 2000 prices (Annualised) Source: CESA BECS 43

44. Training (Salaries and Direct Training Costs) Percentage of Payroll Data not available Source: CESA BECS Trend line – 2 year average 44

45. Training (Salaries and Direct Training Costs) Rbn, Real 2000 prices Data not available Source: CESA BECS Trend line – 2 year average 45

46. Training (Direct costs) Direct training costs as a percentage of payroll increased to 0.8 percent Source: CESA BECS Trend line – 2 year average 46

47. Training (Direct costs) Rand millions, Real 2000 prices Source: CESA BECS Trend line – 2 year average 47

48. Industry Capacity Utilisation Of existing technical staff Source: CESA BECS 48

49. Summary of selected indicators by firm size category 49 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 80.4 27.8 40.0 75.0 Medium 88.3 34.1 23.05 34.2 Small 95.5 60.0 20.63 16.0 Micro 88.8 22.5 21.67 18.6 Industry Average 89.030.2 (Weighted)24.564.7 (Weighted) Source: CESA BECS

50. Total fee income outstanding for longer than 90 days Percentage of total fee income earned Source: CESA BECS Trend line – 2 year average 50

51. Escalation trends: CPI 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 51

52. Labour unit cost indicator Year-on-Year % Change (Smoothed) Source: CESA BECS 52

53. Labour unit cost indicator Annual Average Year-on-Year Percentage Change Source: CESA BECS 53

54. CESA labour costs outpace CPI 54

55. Profile by Race 55

56. Profile of Professional Engineers by Race 56

57. Typical Employment Breakdown January – June 2014 Source: CESA BECS 57

58. Overall Employment Breakdown, by race December 2007– June 2014 Source: CESA BECS 58 43.7%

59. 59 Employment profile Black only (excluding Asian / Coloureds) representation of total employment % Share of total employment

60. Changing profile of female engineers 60

61. Executive Staff: % Share of total employment PTY, CC & Partnerships Source: CESA BECS 61

62. Executive Staff profile Source: CESA BECS 62

63. Black Executive Staff : (including Asian and Coloured) % Share of total Executive Staff Source: CESA BECS 63

64. African (Black) Executive Staff as % of total Executive | December 2008 – June 2014 Source: CESA BECS 64

65. Quality Management System Source: CESA BECS 65

66. ISO 9001:2008 Certificate Source: CESA BECS 66

67. Thank you www.cesa.co.za Tel: 011 463 2022 67