Monday March 19 2018 www agrement co za

Monday, March 19, 2018 www. agrement. co. za Slide 1 of 44 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

Monday, March 19, 2018 www. agrement. co. za Slide 2 of 44 Vision & Mission Ø Vision To-be world class technical Assessment Agency Ø 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.

Monday, March 19, 2018 www. agrement. co. za Ø Slide 3 of 44 Impact and Achievements Exceeded all projections of outputs to date Ø 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 1 st jobs driver is infrastructure: laying the basis for higher growth, inclusivity and job creation. Monday, March 19, 2018

Monday, March 19, 2018 www. agrement. co. za SIP’s & National Development Plan 2030 Slide 4 of 44

Monday, March 19, 2018 www. agrement. co. za Slide 5 of 44 Recommendations SIP’s & NPD Vision 2030 Ø Strengthening broader technical capacity, hence for Agrément; Ø Review of the ‘technical infrastructure’ supporting testing and certification in the building & construction industry Ø scope must include building regulations, codes & certification and supporting infrastructure Ø R&D infrastructure – other than as support infrastructure to building regulations, codes and certification, and supporting infrastructure Ø 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.

Monday, March 19, 2018 www. agrement. co. za Slide 6 of 44 SIP’s & National Development Plan Vision 2030 ØCreate Jobs: Create 11 million more jobs by 2030: Ø Lower the cost of doing business and costs for households ØExpand Infrastructure ØSpeed up and expand renewable energy and waste recycling & ensure buildings meet energy-efficiency standards ØTransform urban and rural spaces: Stop building houses on poorly located land 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

Monday, March 19, 2018 www. agrement. co. za Slide 7 of 44 Organisational structure Board Technical Committee Technical Agency Agrément South Africa Industry Technical Experts

Monday, March 19, 2018 www. agrement. co. za Slide 8 of 44 Governance ØAnnual report 2012 tabled in parliament 29 th September 2012 ØThe Minister of public Works approved the Agrément South Africa’s 2013/14 – 2017/18 strategic plan ØStrategic and Annual Performance Plan 2013/14 – 2017/18 was delivered to the Parliamentary Stores in March 2013 for tabling ØBoard of Agrément South Africa conducts oversight on Agency operations ØThe Chairman and the members of the Board of Agrément South Africa are duly appointed by the Minister of Public Works. ØBy 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.

Monday, March 19, 2018 www. agrement. co. za Slide 9 of 44 Governance Matters: Values Ø Agrément South Africa has excellent systems, processes & linkages with global best practice. Ø Agrément South Africa is well governed with strong control systems. Ø The Board addresses issues of corporate governance to ensure compliance with treasury & national requirements. Ø This ensures proper fiduciary management within the Agrément South Africa.

Monday, March 19, 2018 www. agrement. co. za Slide 10 of 44 Board Governance Ø 8 Board members. Ø Appointed for a period of three years. Ø Board Chairperson and Board members are appointed by the Minister of Public Works. Current Chair is Mr. Pepi Silinga. Ø Strategic planning session held annually. Ø The Board of Agrément holds at least four meetings in a year Ø Board focussed on consolidating its previous strategic plans and moving the Agency forward. Ø The Board's Technical sub-committee focused on key objectives & ensured Agrément South Africa was well governed. Ø Agrément’s financial statements are audited and received a clean audit report

Ms Nteboheng Ngcobo Mr Mninawe Pepi Silinga MBA, Civil Engineering CEO Coega Development Lecturer, University of Corporation Johannesburg 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

Monday, March 19, 2018 www. agrement. co. za Slide 12 of 44 Highlights of Performance 1 Ø Continuing to Maintain SANS ISO 9001 certification. Ø Enhancing the technical skills of Agrément South Africa to ensure competence in handling complex technical assessments. Ø Continued utilisation of in-house specialist laboratory testing equipment. Ø Retaining in-house, highly-skilled technical experts to provide expert opinions in interpreting laboratory analysis and tests.

Monday, March 19, 2018 www. agrement. co. za Slide 13 of 44 Typical Product Development Cycle BUILT ENV. PROFESSIONALS Monday, March 19, 2018

Monday, March 19, 2018 www. agrement. co. za Slide 14 of 44 Transformation Ø Agrément South Africa continued its strong emphasis on the development of human resources to enhance the skills level and efficiency of technical staff. Ø The technical committee has improved hugely in terms of both the number and skill of experts. Ø Transformation within the Agency has been addressed. Percentage of staff either black or female: 92% Black Females Black Males White Females Total No. % 4 34% 6 50% 1 8% 12100%

Monday, March 19, 2018 www. agrement. co. za Slide 15 of 44 Quality Management System A requirement for certification by Agrément South Africa: Ø Is that each certificate holder has a quality management system in place that is documented in a quality manual. Ø The quality management system and the implementation thereof as described in the quality manual must be approved by Agrément South Africa. Ø 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. Ø The applicant must comply with Agrément South Africa’s quality management system which is broadly based on the SANS 9001: Quality management system. Ø Assures credibility of the certificate.

Monday, March 19, 2018 www. agrement. co. za Slide 16 of 44 Validity review 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

Monday, March 19, 2018 www. agrement. co. za Implementation Slide 17 of 44 The certificate holder must include, and elaborate on, the following for manufacturing and erection/installation processes, where applicable: Ø Ø Ø Ø 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.

Monday, March 19, 2018 www. agrement. co. za Results for 2012/2013 Slide 18 of 44 Actual 2010/2011/2012/2013 Applications received: 29 36 33 Evaluation offers made: 24 33 30 Evaluation offers accepted: 19 16 24 Certificates issued: 15 20 31 □ Building products: 84 94 95 □ Building systems: 98 102 116 □ Roads products: 15 16 17 Board’s meetings: 3 4 4 Certified systems under custodianship:

Technical Outputs (Certificates Approved) Slide 19 of 44 Monday, March 19, 2018 www. agrement. co. za Target 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13 Applications received: Evaluation offers made: Evaluation offers accepted: 12 17 17 29 36 33 12 16 15 24 33 30 12 12 7 19 16 24 Certificates issued: 12 9 12 15 20 31 Ø Building products: 86 65 71 84 94 95 Ø Building systems: 95 70 80 98 102 116 Ø Roads products: No. of Board meetings 15 2 10 3 11 4 15 3 16 4 17 4

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Monday, March 19, 2018 www. agrement. co. za 35 Slide 21 of 44 Number of certificates granted annually 31 30 25 20 20 18 Number 15 15 13 12 11 10 10 8 5 18 12 9 12 8 5 0 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Financial year

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Monday, March 19, 2018 www. agrement. co. za Technical Outputs Slide 25 of 44 2009/10 2010/11 2011/12 2012/13 Total Income 8 737 412 8 782 333 9 778 965 9 947 352 Total Expenses 8 590 975 8 550 714 9 876 645 9 957 313 Running Costs (Admin) 2 538 961 2 335 075 1 929 313 2 174 340 Human Resources (incl Perform Bonus) 4 757 491 4 640 583 5 082 398 5 069 820 Overhead Costs 1 294 523 1 575 056 669 072 695 917 Depreciation 369 948 375 056 369 948 439 947 Shared Services Costs 480 601 600 000 1 290 492 996 102 Executive Levies 480 601 600 000 535 422 581 187 Margin before Interest 146 437 231 619 -97 680 -9 961 Interest 147 597 107 570 182 508 185 755 Nett Margin 294 034 339 189 84 828 175 794

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Agrément South Africa [R'000] External Income Other Income Total Income Human Resources Pensionable Salaries Service Bonus Casual Employees Car Allowance Contribution Leave Gratuity Pension Fund Contribution Medical aid Other (UIF, Skills Dev Levy) Running Costs Quality Management Building, Equipment Repair & Maintenance Stationery Other Technical Assessments Costs Agency Operating Expenses Year-end Accruals Other Costs Depreciation Indirect Cost Recovery Unit Total Costs Surplus (loss) before Performance Bonus Interest Income Performance Bonus NET MARGIN AFTER INTEREST 2013/14 2014/15 MTEF Estimates 2015/16 9 121 1 541 10 662 5 550 4 521 202 101 58 95 396 53 125 2 625 432 277 82 462 1 358 15 2 255 537 859 10 430 232 115 97 250 9 730 1 839 11 569 6 022 4 905 219 109 63 103 429 58 136 2 849 468 300 89 501 1 474 16 2 446 582 932 11 317 252 125 106 271 10 314 1 949 12 263 6 383 5 199 232 116 67 109 455 61 144 3 020 497 318 94 531 1 562 17 2 593 617 988 11 996 267 132 112 287 2016/17 2017/18 10 933 2 066 12 999 6 766 5 511 246 123 71 115 482 65 152 3 201 526 337 100 563 1 656 18 2 749 654 1 047 12 716 283 140 119 304 11 589 2 190 13 779 7 172 5 842 260 130 75 122 511 69 162 3 393 558 357 106 597 1 755 19 2 914 694 1 110 13 479 300 148 126 323

Monday, March 19, 2018 www. agrement. co. za Slide 32 of 44 MTEF Transfer Amounts in Thousands of rand MTEF Transfer Amounts 2009/10 Agrément South Africa 7 504 7 879 8 273 8 687 9 121 Percentage Increase 2010/11 5% 2011/12 5% 2012/13 5% 2013/14 5%

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Monday, March 19, 2018 www. agrement. co. za Slide 34 of 44 Financial statements Ø Agrément South Africa (Agency) operates under ministerial delegation of authority from the Minister of Public Works. Ø The grant funding for the Agency is channeled from the Department of Public Works (DPW) to the CSIR. Ø The funds are ring fenced within the CSIR Built Environment Unit in a separate Competence Area. Ø The Agency’s transactions are subject to the policies, procedures and governance processes of the CSIR. Ø The Agency is audited as part of the CSIR Built Environment Unit. Ø The CSIR has received an unqualified audit report for the last few years and has been hailed as an example of good financial management.

Monday, March 19, 2018 www. agrement. co. za Slide 35 of 44 World Federation of Technical Assessment Organizations NBI VTT BBA CCMC ETA TZUS ITB INCERC CSTB EMI RT ICITE LNEC NBRI IETcc ICC FCC HOWTEC BCJ CLB IPT ASA CSIRO ABCB BRANZ

Monday, March 19, 2018 www. agrement. co. za Slide 36 of 44 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.

Monday, March 19, 2018 www. agrement. co. za Slide 37 of 44 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 nonstandardised construction product, service or process.

Monday, March 19, 2018 www. agrement. co. za Slide 38 of 44 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.

Monday, March 19, 2018 www. agrement. co. za Slide 39 of 44 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 advertisements

Monday, March 19, 2018 www. agrement. co. za Technical Outputs 1 1 Ecobeam Building System 2 Freyssinet Armoured Expansion Bridge Deck Joints 3 SARDA Building System 4 SIPWALL Building System (Automa) 5 Supreme Homes Building System 6 Cellular Concrete Building System 7 Africooker 8 BSIMAC 9 Energy Simulation 9 Designbuilder Energy Analysis Software 10 Pro-Phalt Infra Red Road Repair System Slide 40 of 44

Monday, March 19, 2018 www. agrement. co. za Technical Outputs 1 Slide 41 of 44 11 Readykit Building System 12 Uvuyo Building System 13 Tutungeni Building System 14 Plastermax 15 Protea Building System 16 Stuccomax 17 Dandong-City Sandwich Wall Panel Building System 18 Harmili Building System 19 Ikhaya Future House Building Systems (Amendment) 20 Ikhaya Future House Double Storey Building Systems(Amendment)

Monday, March 19, 2018 www. agrement. co. za 21 22 23 24 25 26 27 28 29 Technical Outputs 1 Connovate Modular Housing Building System Spunsualtion Illumina Roofing Radiant Barrier UCO Ardex Building System Vela Steel Building System (Amendment) Lepa Building System (Amendment) Calcamite Water and Liquid Storage Tanks Mega Grip Coating System Valamanzi Coating System Oceansafe Block Building System 30 Jojo. Septic Tanks (Amendment) 31 Jojo Liquid Storage Tanks (Amendment) Slide 42 of 44

Monday, March 19, 2018 www. agrement. co. za Slide 43 of 44 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.

Monday, March 19, 2018 www. agrement. co. za Slide 44 of 44 Thank you… for Achieving excellent results TEAM: Together Everyone Achieves More GOAL EFFORT SUPPORT