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Development of NECSAThe Research Era
1959The Atomic Energy Board (AEB) is instituted as an autonomous research organization to serve as South Africa’s national nuclear authority and for basic nuclear research.
Cabinet approval for the four point nuclear research and development programme.Four Point Nuclear Programme
Development and refinement of the RSA’s nuclear raw materialsPromotion of nuclear powerDevelopment and utilisation of nuclear technology in industry, medicine, agriculture and for research•Basic research in support of the above
Mining ofUranium
Development of NECSAThe Strategic Era1960 - 1989
Interior of Z-Plant Koeberg fuel element SAFARI-1 fuel element
Commissioning of SAFARI-1 research reactor (1965)
Vaalputs waste disposal facility becomes operational (1986)
•Strategic Weapons Programme
Nuclear Reactors
Koeberg Power Station SAFARI-1 Research Reactor
•Commissioned 1984•Generates electricity•2 Reactors•1 840 MW•Fuel elements
•Commissioned 1965•Research reactor•1 Reactor•20 MW•Fuel elements
Two Koeberg fuel elementsbeing prepared for transport
Actual size of SAFARI-1fuel element
THE COMMERCIALISATION ERA
1989 - 2001
•Commercialization of Nuclear and related products
•Downsizing the organization
•Commercial and non – commercial organizations
November 2001November 2001 Senti Senti Thobejane joins NECSA As CEOThobejane joins NECSA As CEO
The Mandate:The Mandate: CLOSE The OrganizationCLOSE The Organization TURN AROUND the Business and TURN AROUND the Business and
Align To National Imperatives Align To National Imperatives
THE NEW ERATHE NEW ERA
The ChoiceThe Choice is to create ais to create a
World-class African-based business World-class African-based business
providingproviding Nuclear Technology excellence for Nuclear Technology excellence for
sustained social and economic development.sustained social and economic development.
January/February 2002 January/February 2002 the New Vision is createdthe New Vision is created February – onwards February – onwards all our Stakeholders are involvedall our Stakeholders are involved
MinisterMinister Deputy MinisterDeputy Minister DMEDME Board of DirectorsBoard of Directors
May – June May – June The Vision is Shared With All employees The Vision is Shared With All employees JuneJune Restructuring Committee is Constituted to Assist Restructuring Committee is Constituted to Assist
With ImplementationWith Implementation Now The road AheadNow The road Ahead
The future belongs to
those who prepare for
it………
VISION 2010……..A vision of growth….
VISION
Nuclear Technology excellence for sustained
social and economic development.
MissionApplied research and development
Commercial application of nuclear and associated technology
Fulfilling the state’s nuclear obligations including safeguards agreement Contributing to the development of skills in science and technology
MissionTotal commitment to health and safety, and to care for the environment.Human Resource development
Excellence in satisfying stakeholder requirements
Action without vision is only Action without vision is only passing time, Vision without passing time, Vision without
action is merely day action is merely day dreaming, but Vision with dreaming, but Vision with
action can change the world.action can change the world.Nelson Mandela
VISION 2010VISION 2010 Is about creating our own futureIs about creating our own future It involves decisions that will successfully It involves decisions that will successfully
guide our businessguide our business Our aim is to take our business beyond the Our aim is to take our business beyond the
borders of our countryborders of our country We will economically manage South Africa’s We will economically manage South Africa’s
Nuclear responsibilities on behalf of the Nuclear responsibilities on behalf of the GovernmentGovernment
Harnessing market principles to optimize Harnessing market principles to optimize the utilization of our resources the utilization of our resources
Government policy and legislation provide Government policy and legislation provide the framework for conducting our businessthe framework for conducting our business
We must build meaningful partnerships We must build meaningful partnerships with all our Stakeholderswith all our Stakeholders
Our competitive advantage is our Our competitive advantage is our knowledge-base and expertise in the knowledge-base and expertise in the Nuclear and related fieldsNuclear and related fields
Vision overviewVision overview
Key Elements critical for SuccessAlign structure with new Vision of nuclearCreate a strategy for turn around and growth
Focus on the core competencies in high technologyAlign with the National imperatives
•Research and development•Human resources development•HIV / AIDS•Social upliftment
Managing the RisksKey Elements critical for Success
Nuclear InstituteRing fence Liabilities and Risks done on behalf of the State
Managing down government liabilityNuclear Waste management
•Exploit capability and capacity•Research and development
Innovation and DevelopmentKey Elements critical for Success
Knowledge-based organization capabilityValue adding research and development
Focused on product developmentContracted R&D
National and nuclear imperatives•Exploit capability and capacity•For the good of the country
For the good of NECSA and the country
Focus – Nuclear and Non-Nuclear high technologies
Conduct profitable businesses and other activities
Exploit new opportunities in nuclear
Partnerships with a purpose
Development of entrepreneurial skills
Manage liabilities in terms of market related tariffs
Using the new vision as an opportunity to build a new organization with new opportunities
Sustainable Growth
For the good of NECSA and the country
Focus – Nuclear and related high technologies
Core competency assessment and exploitation
Value –adding research and development
Package and market
Development of entrepreneurial skills
Impact of Professional HR Management
Using the new vision as an opportunity to build a new organization
Knowledge –Based Organization
Benefits of strategyAlignment
with national imperatives
Focus on NUCLEAR
Corporate performance management
Align with InnovationHRDSocial upliftmentHIV/AIDS
Refocus on Core Competency of NECSAManaging down of State liabilitiesRing fencing of NUCLEAR activities
Accountability for actionsMeasures of “Score-card” system to pull people toward the overall Vision
Benefits of strategy Innovation
and Knowledge
base
Change Management
Focus on Core competenciesEmphasize and package as Knowledge based organization
Create entrepreneurial spiritManage communication.Transformation built on trust
The style in which we manage the integration process will set the tone
of the new organization.
Vision 2010:10 YEAR IMPLEMENTATION
PLAN
1988 20042002 2007 2010
Phase 1
Phase 2
Phase 3
Turn ar ound
growth
consolidati on
OUR CHALLENGE TO CREATE A OUR CHALLENGE TO CREATE A SUPPORTING ORGANIZATIONSUPPORTING ORGANIZATION
A representative Restructuring A representative Restructuring Committee was appointed in May Committee was appointed in May to facilitate the process of to facilitate the process of implementing the new NECSA implementing the new NECSA VISION 2010VISION 2010
THE RESTRUCTURING PLANSTAGE ONE
•All Divisions and Units internalize the NECSA 2010 Growth Strategy and workshop their sections to :
•Reorganize current divisions into defined business along Nuclear versus Non-Nuclear activities and Commercial
versus Non-Commercial activities
•Create Cost and Profit centers
•Commence the review of policies and operational manual
•Establish an accelerated transformation Plan
•Develop and implement a sound financing structure
•Ring-fence commercial assets
•Corporatize HTP and NTP
A practical approachto building a new
vision
“Leadership is ultimately about how we can
collectively shape our future –”
Joseph Jaworski
VISIONARY LEADERSHIP we have a clear sense of purpose, notwithstanding the transition into a global player of note and the fluidity of decisions impacting our destiny.
The organisation has focus and will continue to add exemplary value to the economy of South Africa.
VISIONARY LEADERSHIP we are already making headway and we are set to remain a valuable leader in the field of nuclear in terms of our business, research, partnering, training, and community programs …
Necsa is already a strong proponent of growth and development in our country.
Committed to our vision and values we’re in your world….
Our vision and values define our identity as an organisation as well as the operating ethics and qualities that drive our performance.
Ultimately our values will define how we will achieve our strategic intent to be the pre-eminent African nuclear and related high technology business , of a global stature.
Our vision and strategic direction
With good corporate governance as our foundation, our vision is to further transform the organisation from one focusing only on our current business, to being a successful continental and global player.
Here we are guided by our strategic intent of being the pre-eminent African nuclear and related high technology business of global stature.
Our vision and strategic direction are continuously being informed and influenced by what is happening on the continent and around the globe.
Organization modelNECSA
(holding company)
Nuclear Activities
Commercial businesses
Corporate Services
CORPORATE SERVICES
FACILITY MANAGEMENT
HTP
NTP NUCLEAR TECHNOLOGY
NUCLEARSERVICES
CEOOFFICE
CHIEFEXECUTIVE
OFFICER
CORPORATISED NUCLEAR CORPORATE SERVICES
FINANCIAL SERVICES
THE NEW NECSA BOARD OF DIRECTORS
CHAIRPERSON : Mr WR Jardine CEO, Kagiso Media
DEPUTY : Dr PM Ngwenya Exec. Director Phathani Consult
Mr JF Brownrigg MD WesternAreas/ Randfontein
Ms L Dlhamini Deloite and Touche ( Accountant)
Mr P Goosen Dept Foreign Affairs
Mr H Haricharun Dept Minerals & Energy
Ms MB Madumise Madumise Consultants
Mr AS Minty Deputy DG, Dept Foreign Affairs
Mr S Motlhaloga Dept Minerals & Energy
Dr P Mpikashe MEDUNSA
Mr LDS Thobejane CEO, Necsa
MEET THE NEW EMCThese are the persons who will lead the organisation into the future…..
Senti ThobejaneCEO, Necsa
Pule TsatsiGM, HTP
Don RobertsonMD, NTP
Karel Fouche’GM, Nuclear
Services
Van Zyl de Villiers
GM, Nuclear Technology
Maphutha DiazGM, Corporate
Services
Ayanda MyoliGM, Facilities Management
Sybrandt van Vuuren
Acting GM, Financial Services
OUR CHALLENGE TO GENERATE WEALTHOUR CHALLENGE TO GENERATE WEALTHWe have an opportunity to use our We have an opportunity to use our skills and intellectual capital to skills and intellectual capital to perform our mandate to grow and perform our mandate to grow and indeed to generate wealth through indeed to generate wealth through Nuclear and related technologiesNuclear and related technologies
CONTRIBUTION TO THE RE-AWAKENING
IN NUCLEAR
At the core of of NEPAD and the African renaissance is the acceptance that Africa’s people and their institutions have the capacity to create, foster and maintain economic, social, and developmental processes and practices that define us as competent and proud citizens of of the continent and the world; on par with the best
In South Africa the nuclear knowledge trends have been following the same patterns as those internationally.
• The existing workforce is aging.• The nuclear knowledge base is shrinking and • The industry is not attracting the much needed young
skilled and professional people to sustain and grow the nuclear industry.
• Knowledge management has become a critical success factor, within the nuclear industry in South Africa .
CONTRIBUTION TO THE RE-AWAKENING IN
NUCLEAR
Our efforts
with Visio
n 2010 are aimed at
giving lif
e to our c
ontributio
n.
NUCLEAR TECHNOLOGY
COLLABORATIONCOLLABORATION
Four proposals for collaborative Four proposals for collaborative research projects with local and research projects with local and overseas institutions submitted to NRFoverseas institutions submitted to NRF
Growing interest in NT’s proposal for a Growing interest in NT’s proposal for a feasibility study on a SA synchrotron feasibility study on a SA synchrotron light sourcelight source
Hosting of African Neutron Diffraction Hosting of African Neutron Diffraction MeetingMeeting
High visibility at international High visibility at international conferencesconferences
PBMR SERVICESPBMR SERVICES Comprehensive safety review of kernel Comprehensive safety review of kernel
laboratorylaboratory Lab coater operation well establishedLab coater operation well established Decommissioning plan for C3/C5 submitted Decommissioning plan for C3/C5 submitted
to NNR in preparation for pilot fuel plant to NNR in preparation for pilot fuel plant Radiation and Reactor Theory services Radiation and Reactor Theory services
continuedcontinued Proposal for irradiation testing of fuel Proposal for irradiation testing of fuel
submitted to PBMR, but changes in their submitted to PBMR, but changes in their strategystrategy
NUCLEAR LIABILITIES AND NUCLEAR LIABILITIES AND WASTEWASTE
The draft policy and strategy document on radioactive The draft policy and strategy document on radioactive waste management was published for comment. waste management was published for comment. Implementation would imply that a section of NLM be Implementation would imply that a section of NLM be included in a new National Radioactive Waste included in a new National Radioactive Waste Management Agency reporting directly to DME.Management Agency reporting directly to DME.
Work on the extension of the pipe storage facility for Work on the extension of the pipe storage facility for spent SAFARI-1 fuel will be delayed following DEAT’s spent SAFARI-1 fuel will be delayed following DEAT’s decision that a public scoping will be required before the decision that a public scoping will be required before the project can be submitted for a license change request.project can be submitted for a license change request.
Three consignments containing 360 low-level waste Three consignments containing 360 low-level waste containers from KNPS were disposed of at Vaalputs.containers from KNPS were disposed of at Vaalputs.
I A E AI A E A Progress with the quantification of the HEU containing waste Progress with the quantification of the HEU containing waste
in drums, which could not be included in the South African in drums, which could not be included in the South African nuclear material declaration to the IAEA thus far, is good nuclear material declaration to the IAEA thus far, is good and the matter will probably be finalised within the next and the matter will probably be finalised within the next year.year.
A Member State Support Programme (MSSP) cooperation A Member State Support Programme (MSSP) cooperation agreement between South Africa and the IAEA was signed in agreement between South Africa and the IAEA was signed in Vienna. Initial focus will be on the development of Vienna. Initial focus will be on the development of safeguards measures for the PBMR.safeguards measures for the PBMR.
Necsa’s contributions to IAEA related programmes (Technical Necsa’s contributions to IAEA related programmes (Technical Cooperation, AFRA, borehole project, safeguards, training) Cooperation, AFRA, borehole project, safeguards, training) over the past year featured prominently in the Minister’s over the past year featured prominently in the Minister’s address to the Annual General Conference in Vienna. address to the Annual General Conference in Vienna.
CONTRIBUTION TO THE DEVELOPMENT OF SKILLS
IN SCIENCE AND TECHNOLOGY
THE STEF INIATIVE South Africa is faced with a number of challenges of which the following is the most important:
Increase the level of competency Encouraging young blood into the nuclear industry Rectifying the inequalities of the past Train and develop to build up the eroded knowledge
base which to a large extent is a result of the brain drain
Develop research areas that are attractive and exciting to students
THE STEF INIATIVE STEF – what is it?
The MOA between Necsa, NNR, PBMR, & ESKOM
Registered company --- subsidiary of NecsaWhat will STEF do ?
Source and allocate funds for development National nuclear training strategy Nuclear industry skills audit
What benefit will this programme bring to Necsa? The first agreement is with AREVA
The MOA & JV between Necsa / AREVA
Focus on skills development in nuclear
GOALS of the JV:: a) Training located in South Africa and provided by NECSA, AREVA or appointed service providersb) Training provided in Francec) Training located in South Africa and dedicated to disadvantaged peopled) Community Projects
THE STEF INIATIVE…cont’d
MARST PROGRAMMARST PROGRAM University of North West – M sc University of North West – M sc
Radiation Technology students = 25 Radiation Technology students = 25 studentsstudents
Post-graduate research projects = 30Post-graduate research projects = 30 Lecturers in Radiation protection at Lecturers in Radiation protection at
Wits University = 4 annuallyWits University = 4 annually
PSIPSI
•CE appointed as Chairperson of TrustRestructuring •Composition of TrusteesPatrons of PSI
B TEC Co-managed by NecsaCo-managed by Necsa Number of jobless person trained annually Number of jobless person trained annually
=700=700 Annual contribution by Necsa =R 50 000Annual contribution by Necsa =R 50 000
SOWETAN NATION SOWETAN NATION BUILDING PROJECTBUILDING PROJECT
Upgrading teachers in maths and Upgrading teachers in maths and sciencescience
Teachers trained = 800Teachers trained = 800
CONTRIBUTION TO REGIONAL DEVELOPMENTAFRA AND IAEA INITIATIVES•Conditioning and safe storage of spent Radium sources – Zambia, Zimbabwe, Morocco, Kenya•Contract for Borehole Disposal Concept used for disposal of spent radioactive sources•AFRA national coordinator and IAEA technical cooperation officer•AFRA project coordinators
FULFILLING THE STATES FULFILLING THE STATES NUCLEAR INSTITUTIONAL NUCLEAR INSTITUTIONAL
RESPONSIBILITYRESPONSIBILITY Manage and discharge Necsa’s nuclear Manage and discharge Necsa’s nuclear
liabilities on behalf of Stateliabilities on behalf of State Maintain, develop and utilise radiation Maintain, develop and utilise radiation
technology and facilities as part of technology and facilities as part of National System of InnovationNational System of Innovation
Contribute to SA’s role in the International Contribute to SA’s role in the International nuclear communitynuclear community
Develop and produce nuclear fuel Develop and produce nuclear fuel according to National needsaccording to National needs
Commercial application of our
nuclear and associated high
technology
COMMERCIAL COMMERCIAL DEVELOPMENTS AND DEVELOPMENTS AND
ACHIEVEMENTSACHIEVEMENTS 60% of all sales are on the export 60% of all sales are on the export
marketmarket The mechanical division was accredited The mechanical division was accredited
as a supplier to the armaments counter-as a supplier to the armaments counter-trade programmetrade programme
The radiation division NTP confirmed its The radiation division NTP confirmed its position as a significant supplier of Mo-position as a significant supplier of Mo-99 and NTD silicon99 and NTD silicon
The funding requirement of 67% for The funding requirement of 67% for SAFARI-1 was surpassed through SAFARI-1 was surpassed through transfer pricingtransfer pricing
PBMR contract for the design of PBMR contract for the design of specialised valvesspecialised valves
NTP received the State President Award NTP received the State President Award for export achievement, andfor export achievement, and
Technology Top 100 Award for the export Technology Top 100 Award for the export of processed and manufactured of processed and manufactured materialsmaterials
R & D contract with Dyneon for a range R & D contract with Dyneon for a range of high-value fluoronated compounds of high-value fluoronated compounds
Sirius project – produdtion facility for the Sirius project – produdtion facility for the manufacturing of 50 tpa nitrogen manufacturing of 50 tpa nitrogen trifluoride that is used for manufacture of trifluoride that is used for manufacture of electronic computor chipselectronic computor chips
Production of high quality xenon Production of high quality xenon difluoridedifluoride
VALUE CREATION TOWARDS
SUSTAINABILITY
GROWTH PROJECTS
•PBMR
•BOC contract
•SILICON plant
•Water purification project
•Nordion contract
Honing the competitive edge
BOCNecsa has signed a contract
with BOCThe plant is operatingThis contract will generate
substantial income
Honing the competitive edge
PBMR PBMR is important for the country’s
and our future
We will be actively involved in PBMR
GENERATING NEW IDEAS AND PROJECTS
New Value – adding projects Focused R & D Accessing employee
creativity and ideas and rewarding them
Other Projects.
SSOME AREAS THAT MAY BE CONSIDERED ARE 11 Fluorine platform11 Waste research11 PBMR related projects11 Fuel production capability and especially the
possibility of partnering with BNFL in fuel production for Koeberg
11 NTP acquisitions to generate growth11 Projects focused on Africa 11 Corporate Services and Facilities management
rendering services outside the organisation.
CORPORATISATION
The Plan is focused on two commercial entities
HTP : Flourochemicals
NTP : Radio-isotopes
Ministerial approval obtainedDate for trading is 1 October
When the Minister approved the restructuring of necsa, she envisaged a process that included the corporatisation of HTP and NTP as companies and the introduction of the private sector into the chemical side of the business
NTP
NTP Radioisotopes (Pty) Ltd.NTP Radioisotopes (Pty) Ltd.Quarterly ReviewQuarterly Review
12 November 200312 November 2003
Financials
BudgetForecastActual
139.0131.765.766.0Sales
42.040.839.243.0GP %
34.228.111.416.7Profit
25.825.814.411.4Overheads
60.053.925.828.1GP
YearYear2ND 6 Months1ST 6 Months
Sales Revenues & Exchange Rates (12 months)
R 0.00
R 2.00
R 4.00
R 6.00
R 8.00
R 10.00
R 12.00
Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 A pr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03
M onth
Exch
ange
Rat
es
0
2
4
6
8
10
12
14
Sales Valu
e (MR
)
Sales USD EUR Sales - 2nd Quarter
Gross Profit(Illustrating effect of cost control m easures im plem ented in Apr il)
0%
10%
20%
30%
40%
50%
60%
M on th
GP
%
Sales 41% 39% 40% 45% 29% 33% 51% 43% 36% 45% 37% 42%
Oc t 02 Nov 02 Dec 02 Jan 03 Feb 03 Mar 03 A pr 03 May 03 Jun 03 Jul 03 A ug 03 Sep 03
S ales – 2 nd Qu arter
HTP
• Mr Pule S Tsatsi was recently appointed as General Manager of HTP
• The Portfolio, comprising of PELCHEM, PELDEV AND PTS, had continued with lower Sales levels, which impacted negatively on Profitability and increased funding requirements.
• The corporatisation of the management unit was delayed due to the negative financial results.
• A Turnaround Strategy: Savings was implemented and although the Year-end forecast funding requirement has improved, it is unlikely that Budgeted levels will be reached.
HTP
HTP SALES
• The lower Sales trend of the first quarter continued during the second quarter: Sales were only 54% of Budget at R35.8m.
•All three Divisions contributed to this variance.
•The lower Sales is due mainly to the strong Rand (-R9.4m), lower F2 ,SF6 ,WF6 ,and Siziba sales failed in the Chemical Divisions, with similar tends in Apogee, Fabritech and Flosep.
• lower levels of Sales are forecast to improve slightly to Year-end, namely 63% of Budget at R154.7m (Budget R246.3m).
• The rate of exchange (ROE) movement accounted for loss of Sales of R22.4m .
• Volume and mix problems are export market related for Pelchem where there is an unhealthy dependence on the semi-conductor industry.
• Volume is the issue for PTS where the domestic market for fixed investment has lost momentum and the PBMR opportunities have not materialised.
lower levels of Sales
HTP: CASH POSITION
• The Net Loss (R23.8m) during the second quarter and an increase in Net Operating Capital (R6.4m) resulted in the Portfolio requiring R28.5m funding (via NECSA internal overdraft).
• The Year-end forecast shows deterioration to R67.4m (Budget –R18.7m) despite the Cash Savings program introduced.
• Budgeted Capital expenditure of R69.2m has been delayed due
mainly to the unfavourable financial results and cash crises.
PROFITABILITY
• The lower Sales volumes compounded by the unfavourable ROE has directly eroded Gross Profitability and resulted in a Gross Loss of R9.3m (-26% on Sales) during the second quarter: Only PTS achieved a Gross Profit.
• HTP Overheads exceeded Budget by R1.4m (+17%) due mainly to
the non-achieving of management risk of R1.4m budgeted for. At current Sales levels the Overheads are unaffordable at 26% of Sales (Budget 12%).
• HTP Net Loss before tax increased by R23.8m (Budget R4.2):
Pelchem –R13.8m, Peldev – --R4.8mPTS –------R2.7m.
• The Year-end forecast shows deterioration to R78.1m, despite the Cash Savings program introduced.
Turnaround strategy TARGET:
Short-term financial viability, including a <R25m cash requirement for the current year-end. To achieve this,
1. restructuring of the business process and organogram is required.
2. capital restructuring will be negotiated with NECSA including the write off of losses to date,
3. a reduction in NECSA overheads allocated and
4. an even more intensive cost-cutting exercise. Revisit viability of all product, businesses and contracts. Break-even and better 2005+ Budget targets. Corporatisation feasibility Exploitation of Intellectual Property Centralisation of various functions
CURRENT FINANCIAL REPORT
FINANCIAL OVERVIEW FINANCIAL OVERVIEW 2000 – 20032000 – 2003
R’mR’m20002000 200200
1120022002 200200
33totatotall
1.External sales1.External salesgrowthgrowth
250250--
307307+23%+23%
301301-2%-2%
356356+18%+18% +42%+42%
2.Govt Grant2.Govt GrantActivitiesActivitiesD&DD&DSeverance Severance packagespackages
254254231231--2323
19419416616618181010
161161142142181811
17017014014020201010
3.Reduction3.ReductionLoan reductionLoan reductionInterestInterestIAEAIAEATOAL GOVT TOAL GOVT GRANTGRANT
--3333454555337337
-24%-24%55393966244244
-17%-17%333636--200200
+6%+6%2332333232--435435
-33%-33%
Cash flow Situation and
Organisation Efficiency Measures
The relatively strong RAND, the cut in interest rates, anda general global slump in business
has impacted negatively on our cashflow positionand has resulted in EMC having to take the drasticmeasures all of us have experiencedto curtail non-critical expenditure
WHERE DO WE DO BUSINESS
CLIENT TURNOVER
1 Belgium MR26,1
2 United States MR 8,9
3 Canada MR 6,3
4 Brazil MR 4,4
5 United Kingdom MR 3,9
6 Australia MR 3,2
7 China MR 3,1
8 Turkey MR 3,0
9 Japan MR 2,5
10 South Korea MR 2,4
Total exports for the year to date amounted to MR92,2. (MR4,0 decrease on previous quarter).
Top ten export countries for the quarter
RoE’S Y/E FORECAST AND BUDGETED
FOR THE CURRENT YEAR.
FORECAST BUDGET
RAND/USD
7.25
10.30
RAND/EURO
8.20
10.20
NECSA FINANCIAL NECSA FINANCIAL PERFORMANCE YTDPERFORMANCE YTD
(2003/9/30) (2003/9/30) (All figures in R Million)(All figures in R Million)
ACTUAL BUDGET VARIANCE
External Sales 151 119 217 442 (66 323)
Operating Expenses 275 446 329 364 78 728
Net Profit (124 327) (111 922) (12 405)
Cash flow Situation and
Organisation Efficiency Measures
The CEO made a presentation to DME on the financial position of Necsa and the actions planned to combat the problem.
This matter is a priority of the EMC. • We must consider all possible actions for cost saving within our Divisions and also any initiatives / projects that can add–value to the organisation
What are doing about it ?
The CEO will be driving a Revenue Diversification Plan for Necsa that will focus on
(a) growing the Rand-based income, and
(b) marketing all Necsa’s capabilities.
Cash flow Situation and
Organisation Efficiency Measures …cont’d
COMPEITIVE MACRO-ENVIRONMENT
Hedging against the Rand / dollar dilema
Covering our fixed costs in Rand
Broadening our business case
Some of the actions already identified to make the
organisation more profitable and effective are
Reviewing The Business Plans Of DivisionsIdentifying areas of savings and productivity improvement
Effective and Efficient Utilisation of resourcesRemove duplication
Redeployment of under utilised staff, and not necessarily a cut back / retrenchment of staff .
The CEO and Labour will discuss issues around ways to minimise job losses.
All management systems and procedures must be interrogated for inefficiencies , eg visitors security procedure,number of gates open at non-peak times, etc.
In line with Vision 2010 there must be a drive in the organisation to create and identify strategic projects to ensure the long term growth of the organisation .
The CEO will regularly report on the progress of the above organisation efficiency actions
Due to the Knowledge-based nature of our organisation GM’s are required to generate value-adding projects,
OUR CHALLENGE TO CREATE A FAIR SOCIETYOUR CHALLENGE TO CREATE A FAIR SOCIETYAs well as doing our business, we will As well as doing our business, we will harness our skills and competencies harness our skills and competencies towards contributing to the creation of a towards contributing to the creation of a fair society through the implementation of fair society through the implementation of equity, skills development, and social equity, skills development, and social upliftmentupliftment
EMPLOYMENT EQUITY AT NECSAEMPLOYMENT EQUITY AT NECSA
PRIMARY OBJECTIVES•To promote equal opportunity and fair treatment in employment through elimination of unfair discrimination
•Implement affirmative action measures to redress the disadvantages in employment experienced
•Ensure equitable representation in all occupational categories and levels
•Ensure compliance with the Employment Equity Act
NECSA PERSONNEL STRENGTH
30 JUNE 200330 JUNE 2003WHITEWHITE BLACKBLACK TOTALTOTAL
PermanentPermanent 874874 598598 14721472ContractContract 1212 3636 4848TotalTotal 886886 634634 15201520
30 SEPTEMBER 200330 SEPTEMBER 2003PermanentPermanent 866866 632632 14981498ContractContract 3333 4242 7575TotalTotal 899899 674674 15731573
PERSONNEL STRENGTH PER GENDER AND RACE
GENDERGENDER RACERACEMALEMALE FEMALEFEMALE
PERMANENTPERMANENT %% %% %%WHITEWHITE 75.075.0 25.025.0 57.757.7AFRICANAFRICAN 80.380.3 19.719.7 36.836.8ASIANSASIANS 72.272.2 27.827.8 1.21.2COLOUREDCOLOURED 65.165.1 34.934.9 4.24.2
TOTALTOTAL 76.576.5 23.523.5 100.0100.0CONTRACTCONTRACT %% %% %%
WHITEWHITE 93.893.8 6.36.3 42.742.7AFRICANAFRICAN 86.886.8 13.213.2 50.750.7ASIANSASIANS -- -- --COLOUREDCOLOURED 100.0100.0 -- 6.76.7
TOTALTOTAL 90.790.7 9.39.3 100.0100.0%% %%
ORGANISATIONORGANISATION 77.277.2 22.822.8
AFFIRMATIVE ACTION PURCHASES 2 nd QUARTER M-Rand
41.02
8.2
12
BLACK BUSINESS ENTERPRISES
CHALLENGES FOR THE CHALLENGES FOR THE FUTUREFUTURE
1.1. Growth and DevelopmentGrowth and Development Business development to exploit opportunitiesBusiness development to exploit opportunities
PBMRPBMR Sun energy silicon systemsSun energy silicon systems Expansion of radiation based productsExpansion of radiation based products Expansion of Fluorine based chemical productsExpansion of Fluorine based chemical products Contract R&DContract R&D RERTR program—SAFARI-1 conversionRERTR program—SAFARI-1 conversion Green coal Green coal
Corporatisation and growth of HTP and NTPCorporatisation and growth of HTP and NTP Skills development and trainingSkills development and training Improvement of productive application of resourcesImprovement of productive application of resources
2.2. Restructuring and TranformationRestructuring and Tranformation
1.1. Necsa’s PositioningNecsa’s Positioning Alignment to DME Alignment to DME Other DepartmentsOther Departments
2.2. Political Positioning via interaction with Political Positioning via interaction with Parliamentary Portfolio Committee and Parliamentary Portfolio Committee and other entitiesother entities
3.3. FundingFunding Necsa requires approx R 236 million additional Necsa requires approx R 236 million additional
governmental funding over next three years to governmental funding over next three years to address expanded institutional activitiesaddress expanded institutional activities
4.4. Legislative and Policy MattersLegislative and Policy Matters PFMAPFMA King IIKing II Companies ActCompanies Act
5.5. Upgrading of Site SecurityUpgrading of Site Security
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