hall 2c tuesday 13h30 - jan wessels
TRANSCRIPT
PowerPoint Presentation
State-owned Denel - a leading catalyst for industrialisation in the high-technology aerospace & defence sector through RSA industry collaboration
DENEL GROUP
DENEL GROUP#
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SETTING THE SCENE:
DENEL GROUP#
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Fully owned by SA GovernmentReports to Minister of Public EnterprisesCompany established in 1992Some facilities exist > 50 yearsLargest manufacturer of defence equipment in SAExperienced in supplying and supporting of equipment aroundthe globe
DENEL GROUP#CORE PRODUCT PORTFOLIO
Humanitarian demining services and products Mine Protected Vehicles Technical Training Munitions and sub componentsUnmanned Aerial vehiclesMissiles Engineering servicesLand based systems( Artillery, Infantryand Armour systems)Maintenance repair and overhaul Command and Control
Aerostructures
DENEL GROUP#THE MANDATE OF DENEL: WHAT THE SHAREHOLDER HOLDS DENEL ACCOUNTABLE FOR!!
DENEL GROUP#5
DENEL DYNAMICS
DENEL LAND SYSTEMS
DENEL AVIATIONDENEL AEROSTRUCTURESDENEL PMP
DENEL OTR TEST RANGEDENEL INTEGRATED SYSTEMS & MARITIME
DENEL VEHICLE SYSTEMS
DENEL LMT
RHEINMETALL DENEL MUNITION (RDM)
AIRBUS DENEL OPTRONICS
TURBOMECA AFRICA
TAWAZUN DYNAMICS
DENEL GROUP CEORiaz SaloojeeGROUP FD
GROUP BUSINESS DEVGROUP HR & TXGROUP SUPPLY CHAIN
GROUP COMMS
GROUP COOJan WesselsGROUP LEGALGRP RISK & COMPLIANCE
DENEL C2
INTRODUCTION TO DENELDENEL WHOLLY OWNEDDENEL SUBSIDIARIES >50%DENEL ASSOCIATES 55% EXPORTNO GRANTS & SUBSIDIES
DENEL GROUP#INVESTING IN THE CORE TECHNICAL FOUNDATION:Investment in core new technologies, new processes, new skills for example:New navigation algorithms to be used on all missiles & UAVSNew software design tools to be used on land vehicle programsNew telemetry technology to be used at test ranges
RESEARCH & DEVELOPING NEW PRODUCTS FOR THE FUTURE:Investment to develop tomorrow's products & systems. Selected examples:Badger (Hoefyster) infantry fighting vehicle familyA-Darter (short range missile) to protect during close-range combatMarlin (long range missile) to protect against long-range air attacksRooivalk Mk 2 (new baseline) for expanding the existing fleetEOSat-1 satellite for earth observation & photographyRG35 military vehicle for defence in the Middle East & globalLM13 paramilitary vehicle border security in the Middle East & global
EXPAND THE MARKET OF EXISTING PRODUCTLINES:Investment to modernise/expand existing lines through incremental investments. Selected examples where Denel internal & client funding is used::Modernised Artillery G6 offerings for the export marketMedium calibre ammunition 27mm for Gripen to replace importsSeeker-200 & -400 UAVS to modernise the UAV market offeringRooivalk Mk 1 (upgrade) of the existing SAAF fleet
Denels R&D Investment during 2014/15:
R468m
DENEL INVESTS SIGNFICANTLY IN R&D TO SECURE THE FUTURE
DENEL GROUP#MOVING FORWARD:
DENEL GROUP#
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INTEGRATED SYSTEMS (Level 5)COMPLEX Highly Integrated, Technically-difficult Systems and/or Based on Sovereign/strategic Technologies(Denel as SOE) (**)
Non-COMPLEX Lightly- Integrated, Technically-Easy Systems and based on non-critical Technologies(Private Defence Industry)Armscor/DOD(Acquisition Decisions for the SANDF)PRODUCTS , SUBSYSTEMS & COMPONENTS (Level 4-3-2-1)COMPLEX & DIFFICULT TO SUSTAIN products/subsystems/components and/or Based on Sovereign/strategic Technologies(Denel as SOE)Non-COMPLEX & READILY SUSTAINABLE products/subsystems/components and based on non-critical Technologies(Private Defence Industry))Note (**): SMME/BEE supplier development may be further motivation to contract Denel as SOE on system level to provide a basket of local industry solutions (recent example UTILITY -> EU OEM -> Denel Aerostructures-> multiple SMMEs)>THE DENEL VALUE PROPOSITION ON ONE PAGE
DENEL GROUP#SUPPLY CHAIN MANAGEMENT
DENEL GROUP#1. Denel is primarily a designer & systems-integrator of very complex technically advanced systems. We design the complex systems but mostly subcontract manufacturing of elements to the private industry before doing final integration, test and commissioning. It is one of our KPAs to develop local industry. It is not a afterthought or a buzzword it is core to our success!2. Denel is not a utility company like many other SOEs . More than 55% of income is from exports and even locally there are NO subsidies, grants or regulated prices. We have to compete for orders in a very tough global market where most countries have high entry barriers for strategic defence equipment. (Example the USA, France, China, etc). Meaning our supply base needs to be world-class ito technology, efficiency & pricing.3. Like most companies Denel developed & matured through the past decades from being technologically dependent (on foreign technology in the 1970s) to becoming independent in the 1980s till 1993 (embargo & sanction years), then after 1994 maturing (grow up!) and becoming inter-dependent with partners (both suppliers & customers)DENEL INVITES THE MANUFACTURING INDUSTRY TO PARTICIPATE4. Denel is a small player (