Presented by: Senti Thobejane Chief Executive 03 November 2004 Capitalising on nuclear technology’s ability to enhance life

Presented by:Senti ThobejaneChief Executive03 November 2004

Capitalising on nuclear technology’s ability to enhance life.

Vision and MissionVision and MissionNecsa’s long term growth strategy, Vision 2010, seeks “to Necsa’s long term growth strategy, Vision 2010, seeks “to pursue nuclear technology excellence for sustained social pursue nuclear technology excellence for sustained social and economic development”.and economic development”.

Its mission is to develop, utilise and manage nuclear Its mission is to develop, utilise and manage nuclear technology for national and regional socio-economic technology for national and regional socio-economic development.development.

Values that are strived for:Values that are strived for:– PartnershipPartnership– Life enhancementLife enhancement– EntrepreneurshipEntrepreneurship– ExcellenceExcellence– Leadership; andLeadership; and– responsibilityresponsibility

Chairman’s reviewChairman’s reviewNecsa is committed to Necsa is committed to its national its national responsibilityresponsibility

Necsa will continue to Necsa will continue to provide a range of provide a range of products and services products and services critical to many other critical to many other industries and services industries and services in the country and in the country and abroad.abroad.

Necsa’s structureNecsa’s structure

Chief Executive

NuclearServices

(NS)

Corporate Services

(CS)

Financial Services

(FS)

FacilitiesManagement

(FM)

High Technology

Products(HTP)

NuclearTechnology

Products(NTP)

Nuclear Technology

(NT)

Board of Directors

Security

Prodit

StrategicBus.Dev.

Transformation

Restructuring Restructuring and Corporatisationand Corporatisation

Restructuring of the Necsa GroupRestructuring of the Necsa GroupConsolidation of Necsa into seven Consolidation of Necsa into seven

management units:management units:

Nuclear ServicesNuclear Services

Nuclear TechnologyNuclear Technology

Nuclear Technology Products (NTPNuclear Technology Products (NTP

Corporatisation of NTP Radioisotopes Corporatisation of NTP Radioisotopes (Pty) Ltd(Pty) Ltd

Skills development Skills development and trainingand training

R1.6m invested in staff training and skills R1.6m invested in staff training and skills advancementadvancement

Successful joint venture partnership with Successful joint venture partnership with Areva, a French company: Arecsa Human Areva, a French company: Arecsa Human Capital (Pty) LtdCapital (Pty) Ltd

Necsa’s intellectual capitalNecsa’s intellectual capital

Participation in the learnership programme Participation in the learnership programme with the CHIETAwith the CHIETA

Economic Performance Economic Performance Indicators Indicators

Total BEE spend of R54,8m Total BEE spend of R54,8m (23% increase from last (23% increase from last year)year)

Out of 2217 suppliers, 315 Out of 2217 suppliers, 315 are BEE which represents a are BEE which represents a growth of 24%growth of 24%

Necsa supports Nepad Necsa supports Nepad through science and through science and technology developmenttechnology development

Cost of material and Cost of material and services purchased was services purchased was R185m compared to R185m compared to R194,4m for 2002/2003R194,4m for 2002/2003

Personnel expenses Personnel expenses amounted to R279m amounted to R279m (previous period was R263m)(previous period was R263m)

Interest paid on borrowings Interest paid on borrowings amounted to R3,3m as amounted to R3,3m as opposed to R19,5 in opposed to R19,5 in 2002/20032002/2003

Cash flow pressures Cash flow pressures necessitated the utilisation of necessitated the utilisation of overdraft facilityoverdraft facility

Funding from DST Funding from DST R1,6m past yearR1,6m past yearR4,06m to end March R4,06m to end March 20042004Balance R5,6mBalance R5,6m

Social Performance Social Performance IndicatorsIndicators

Net increase of 4.91% of Net increase of 4.91% of permanent staff complementpermanent staff complement

Previous year Space Previous year Space Creation Programme was Creation Programme was successfulsuccessful

12 New managers were 12 New managers were appointedappointed

Designated people were Designated people were appointed into technical appointed into technical jobsjobs

Organised labour and Organised labour and management relationsmanagement relations

HIV/AidsHIV/AidsWellness ProgrammeWellness ProgrammeCancer BreakfastCancer Breakfast

Health, Safety and Health, Safety and environmentenvironment

Behaviour Based SafetyBehaviour Based Safety

Necsa Bursary SchemeNecsa Bursary SchemeNecsa has 15 bursars, of Necsa has 15 bursars, of which 93% are from which 93% are from designated groupdesignated group

Science and Technology Science and Technology Education Fund (STEF)Education Fund (STEF)

Necsa Retirement Fund and Necsa Retirement Fund and Medical AidMedical Aid

Environmental Environmental Performance Indicators Performance Indicators

Nuclear LicenceNuclear LicenceCompliance and approval of projectsCompliance and approval of projectsHSE AuditingHSE AuditingEnvironmental performanceEnvironmental performance

Water permitWater permitAir permitAir permitIodine occurrenceIodine occurrenceVaalputs environmental monitoringVaalputs environmental monitoring

BiodiversityBiodiversitySecurity – upgrade of security fence and Security – upgrade of security fence and installation of surveillance camerasinstallation of surveillance camerasEmergency services – Contract with Emergency services – Contract with Madibeng was renewed.Madibeng was renewed.

CORPORATE SERVICES

FACILITY MANAGEMENT

HTP

NTPNUCLEAR

TECHNOLOGY

NUCLEARSERVICES

CEOOFFICE

CHIEFEXECUTIVE

OFFICER

CORPORATISED NUCLEAR CORPORATE SERVICES

FINANCIAL SERVICES

NECSA LTDBOARD OF DIRECTORS

CEO

NUCLEARSERVICES

NUCLEARSERVICES

NUCLEARTECHNOLOGY

NUCLEARTECHNOLOGYHTPHTP NTPNTP FINANCIAL

SERVICES

FINANCIALSERVICES

FACILITY MANAGEMENT

FACILITY MANAGEMENT

CORPORATE SERVICES

CORPORATE SERVICES

Commercial

Organisational reportingOrganisational reporting

Nuclear ServicesNuclear Services Product and servicesProduct and services

Operation of SAFARI-1 reactor for commercial and institutional Operation of SAFARI-1 reactor for commercial and institutional applications.applications.

Management of nuclear waste and operation of Vaalputs National Management of nuclear waste and operation of Vaalputs National Radioactive Waste Disposal Facility. Decommissioning and Radioactive Waste Disposal Facility. Decommissioning and decontamination of closed nuclear facilities. decontamination of closed nuclear facilities.

Provision of Nuclear Safeguards function on national level as required Provision of Nuclear Safeguards function on national level as required by NTP. by NTP.

Coordination and administration of IAEA Technical Cooperation Coordination and administration of IAEA Technical Cooperation activities and AFRA on national level.activities and AFRA on national level.

Management of corporate HSE matters including Necsa’s nuclear Management of corporate HSE matters including Necsa’s nuclear license and quality servicelicense and quality service. .


Nuclear ServicesNuclear ServicesChallengesChallenges

Conversion of SAFARI-1 to locally produced LEU fuel.Conversion of SAFARI-1 to locally produced LEU fuel.

Growing SAFARI-1 involvement in commercial applications including Growing SAFARI-1 involvement in commercial applications including PBMR service.PBMR service.

Establishment of new Waste Management Agency within Necsa Establishment of new Waste Management Agency within Necsa structures. structures.

Upgrading and renovation of ageing nuclear waste processing Upgrading and renovation of ageing nuclear waste processing facilities. facilities.

Grow radioactive waste service in South Africa and Africa.Grow radioactive waste service in South Africa and Africa.

Participate in development of technology for final disposal (deep Participate in development of technology for final disposal (deep geological) of nuclear waste. geological) of nuclear waste.

Improve cooperation between AFRA and NEPAD. Improve cooperation between AFRA and NEPAD.

Maintain Necsa’s excellent nuclear safety record. Maintain Necsa’s excellent nuclear safety record.

Achieve the above within constraints of limited resources. Achieve the above within constraints of limited resources.


Nuclear ServicesNuclear Services2003/2004 Achievements2003/2004 Achievements

Conversion of SAFARI-1 Conversion of SAFARI-1 to locally produced LEU to locally produced LEU fuel.fuel.

Growing SAFARI-1 Growing SAFARI-1 involvement in involvement in commercial applications commercial applications including PBMR service.including PBMR service.

Establishment of new Establishment of new Waste Management Waste Management Agency within Necsa Agency within Necsa structures. structures.

Upgrading and Upgrading and renovation of ageing renovation of ageing nuclear waste nuclear waste processing facilities. processing facilities.

Grow radioactive waste Grow radioactive waste service in South Africa and service in South Africa and Africa.Africa.

Participate in development Participate in development of technology for final of technology for final disposal (deep geological) disposal (deep geological) of nuclear waste. of nuclear waste.

Improve cooperation Improve cooperation between AFRA and NEPAD.between AFRA and NEPAD.

Maintain Necsa’s excellent Maintain Necsa’s excellent nuclear safety record. nuclear safety record.

Achieve the above within Achieve the above within constraints of limited constraints of limited resources. resources.


Nuclear TechnologyNuclear TechnologyServicesServices

Establishment of PBMR fuel manufacturing and quality Establishment of PBMR fuel manufacturing and quality control capabilities on laboratory scalecontrol capabilities on laboratory scale

Radiation and reactor theory calculation services to Radiation and reactor theory calculation services to Necsa and PBMRNecsa and PBMR

Measurement of radioactivity for Necsa, mining and Measurement of radioactivity for Necsa, mining and agricultural industry, environmental monitoring, etc.agricultural industry, environmental monitoring, etc.

Non-invasive investigations of petrochemical and mining Non-invasive investigations of petrochemical and mining plants and processes by using radioisotopesplants and processes by using radioisotopes

Extensive support to NTP RadioisotopesExtensive support to NTP Radioisotopes



Research and DevelopmentResearch and Development

Development of radiopharmaceuticals in Development of radiopharmaceuticals in collaboration with local and overseas partnerscollaboration with local and overseas partners

Upgrading of SAFARI-1 neutron beam-line Upgrading of SAFARI-1 neutron beam-line research facilitiesresearch facilities

New neutron tomography capability found New neutron tomography capability found many applicationsmany applications

Expansion of locally developed reactor Expansion of locally developed reactor modelling computer codes for international modelling computer codes for international applicationsapplications



CollaborationCollaboration

Further growth in participation in IAEA and Further growth in participation in IAEA and AFRA programmes; strong contribution AFRA programmes; strong contribution towards enhanced sustainability of African towards enhanced sustainability of African nuclear institutionsnuclear institutions

Growing research and training Growing research and training collaboration with higher education collaboration with higher education institutionsinstitutions



ChallengesChallenges

Accelerated expansion of capacity (staff, Accelerated expansion of capacity (staff, skills, experimental facilities) to perform skills, experimental facilities) to perform research, development and training for research, development and training for Necsa’s growthNecsa’s growth

Expansion of collaborative networksExpansion of collaborative networks

Accessing additional funding sourcesAccessing additional funding sources


Corporate ServicesCorporate Services

ServicesServicesCommercial legal servicesCommercial legal services

Human capital management, administration Human capital management, administration and developmentand development

Corporate Communication and Public Corporate Communication and Public RelationsRelations

Procurement and provisioningProcurement and provisioning

Provision of information technology servicesProvision of information technology services


Corporate ServicesCorporate ServicesChallengesChallenges

Business transformation i.r.o social equity and Business transformation i.r.o social equity and world class business practices.world class business practices.

Removal of ±Removal of ±R200mR200m Post-Retirement Medical Post-Retirement Medical Aid (PRMA) liability from the Necsa balance sheet.Aid (PRMA) liability from the Necsa balance sheet.

Retention of skilled human capital in the nuclear Retention of skilled human capital in the nuclear field.field.

Leave liability valued at R31,5mLeave liability valued at R31,5m

Human resource development.Human resource development.

Employment creation.Employment creation.


Corporate ServicesCorporate Services

MilestonesMilestones

Commercialisation of NTPCommercialisation of NTP

Restructuring and/or realignment of Restructuring and/or realignment of Necsa in line with vision 2010.Necsa in line with vision 2010.

Necsa-wide recovery plan to Necsa-wide recovery plan to achieve Growthachieve Growth


Facilities ManagementFacilities Management

ServicesServicesProperty supportProperty support,, include among others:include among others:

Property managementProperty managementTelecommunicationTelecommunicationSecuritySecurityMechanical and Mechanical and electrical maintenanceelectrical maintenance

Maintenance ServicesMaintenance ServicesMechanical and Mechanical and electrical electrical Heavy vehicle Heavy vehicle maintenancemaintenance

Utilities ServicesUtilities ServicesProcess WaterProcess WaterDrinking waterDrinking waterCompressed airCompressed airSewerageSewerageElectricityElectricity

Technical ServicesTechnical ServicesMaintenance PlanningMaintenance PlanningElectrical EngineeringElectrical EngineeringDesign and DraftingDesign and DraftingProjectsProjects


Facilities ManagementFacilities ManagementChallengesChallenges

CorporatisationCorporatisation

Strategic partnership (negotiations in progress)Strategic partnership (negotiations in progress)

ISO 9001 certificationISO 9001 certification

BBS implementationBBS implementation

Enhancement of Information Management Enhancement of Information Management systemssystems

Maintenance management systemMaintenance management systemBuilding management systemBuilding management system

Utilities optimization and energy managementUtilities optimization and energy management

Hartbeespoort dam water treatmentHartbeespoort dam water treatment


Facilities ManagementFacilities ManagementAchievementsAchievements

Ventilation optimization: R 96k p.a.Ventilation optimization: R 96k p.a.

Reduction of vehicles: R 118k p.a.Reduction of vehicles: R 118k p.a.

Electricity savings due to timers on HVAC systems : R 94k p.a.Electricity savings due to timers on HVAC systems : R 94k p.a.

Pelindaba East commissioning of reverse osmosis plant: R 180k Pelindaba East commissioning of reverse osmosis plant: R 180k p.a. in effluent treatmentp.a. in effluent treatment

Small capital items (tols): R 143k for 2004 financial yearSmall capital items (tols): R 143k for 2004 financial year

Phase in of Rand water tariff increase through DTI intervention Phase in of Rand water tariff increase through DTI intervention – savings still to be realised– savings still to be realised

Maintenance schedule optimization (task and frequency Maintenance schedule optimization (task and frequency review)review)


NTP Radioisotopes NTP Radioisotopes (Pty) Ltd(Pty) Ltd

Products and servicesProducts and services

Radiochemicals include Radiochemicals include the following:the following:

Molybdenum-99 Molybdenum-99 Iodine-131Iodine-131Sulphur-35Sulphur-35Phosphorus-32Phosphorus-32Phosphorus-33Phosphorus-33Yttrium-99Yttrium-99

Radioactive sourcesRadioactive sourcesIrridium-192 used Irridium-192 used for non-destructive for non-destructive testing of welds, testing of welds, process vessel walls process vessel walls and piping.and piping.

Cobalt -60 Cobalt -60 Caesium used for Caesium used for process control process control instrument instrument application.application.

Specialised transport, Specialised transport, transfer and process transfer and process control containers are control containers are designed, designed, manufactured and manufactured and licensed by NTP.licensed by NTP.

NTP performs contract NTP performs contract manufacturing manufacturing operations, andoperations, and

It produces a It produces a comprehensive range comprehensive range of of radiopharmaceuticals.radiopharmaceuticals.


NTP Radioisotopes NTP Radioisotopes (Pty) Ltd (Pty) Ltd

AchievementsAchievementsBuilt and commissioned the first Yttrium-90 Built and commissioned the first Yttrium-90 radiochemical production facilityradiochemical production facilityDeveloped the technology for production of the Developed the technology for production of the isotopes Re-186 and Lu-177isotopes Re-186 and Lu-177Radiopharmaceutical MIBG has been Radiopharmaceutical MIBG has been successfully produced and made available in SAsuccessfully produced and made available in SAImprovements were made to the PELTEK-F Improvements were made to the PELTEK-F generatorgeneratorIntroduced a behaviour based safety Introduced a behaviour based safety programme (LEBO)programme (LEBO)


HTPHTPProductProduct

This business division house the non-nuclear This business division house the non-nuclear commercial activities of Necsa, which comprises commercial activities of Necsa, which comprises three units, namely:three units, namely:

Pelchem – houses the chemical marketing Pelchem – houses the chemical marketing

and manufacturing unitand manufacturing unit

Peldev - houses the flourochemical Peldev - houses the flourochemical

development unitdevelopment unit

PTS - is the engineering and manufacturingPTS - is the engineering and manufacturing unitunit


HTPHTP

ChallengesChallenges

Re-structuring and re-engineering the Re-structuring and re-engineering the divisiondivision

Hive off Profitable units and market BEE Hive off Profitable units and market BEE partnerspartners

Implementation of the Turnaround StrategyImplementation of the Turnaround Strategy

ImproveImprove and meet budget obligations to and meet budget obligations to NecsaNecsa


Financial ServicesFinancial ServicesFINANCIAL PERFORMANCE AT YEAR ENDFINANCIAL PERFORMANCE AT YEAR END

The strong rand had a very negative impact on The strong rand had a very negative impact on the performance of the group.the performance of the group.

The export sales dropped, our net profitability, The export sales dropped, our net profitability, cash flow position were down by R57.4m cash flow position were down by R57.4m compared to budget.compared to budget.

Necsa sold its operating division NTP to NTP Necsa sold its operating division NTP to NTP Radioisotopes (Pty) Ltd as a going concern Radioisotopes (Pty) Ltd as a going concern realising a profit of R199m. realising a profit of R199m.

The above profit was eliminated by the provision The above profit was eliminated by the provision for post retirement medical aid of R290m. for post retirement medical aid of R290m.


Financial ServicesFinancial ServicesINCOME STATEMENTS INCOME STATEMENTS FOR THE YEAR ENDED 31FOR THE YEAR ENDED 31STST MARCH 2004 MARCH 2004

NotesNotes CorporationCorporation20042004

R,000R,000

GroupGroup20042004

R’000R’000

CorporationCorporation20032003

R,000R,000

GroupGroup20032003

RevenueRevenueCost of salesCost of sales

11 456 336456 336(191 886)(191 886)

520 203520 203(233 604)(233 604)

555 289555 289(228 315)(228 315)

600 826600 826(261 936)(261 936)

Gross profitGross profitOther operating incomeOther operating incomeAdministrative expensesAdministrative expensesOther operating expensesOther operating expenses

264 450264 45026 99826 998

(31 706)(31 706)(320 752)(320 752)

286 599286 59926 16126 161

(34 133)(34 133)(339 815)(339 815)

326 974326 97435 44435 444

(27 342)(27 342)(325 229)(325 229)

338 890338 89037 66437 664

(29 200)(29 200)(334 450)(334 450)

Operating (loss)/profitOperating (loss)/profitFinance costsFinance costs

2266

(61 010)(61 010)3 9523 952

(61 188)(61 188)4 9424 942

9 8479 8474 6254 625

12 90412 9046 0936 093

PROFIT/(LOSS) BEFORE TAXPROFIT/(LOSS) BEFORE TAXIncome tax expenseIncome tax expense

77 (57 058)(57 058)6 7786 778

(56 246)(56 246)4 9204 920

14 47214 472(6 778)(6 778)

18 99718 99798 768)98 768)

NET PROFIT/(LOSS)NET PROFIT/(LOSS) 22 149 493149 493 (51 353)(51 353) 241 128241 128 241 992241 992

EARNINGS/(LOSS) PER SHAREEARNINGS/(LOSS) PER SHARE 88 (22,80)(22,80) (23,28)(23,28) 3,493,49 4,644,64


Financial ServicesFinancial ServicesBALANCE SHEETS AS AT 31BALANCE SHEETS AS AT 31STST MARCH 2004 MARCH 2004

NotesNotes CorporationCorporation20042004

R,000R,000

GroupGroup20042004

R’000R’000

CorporationCorporation20032003

R,000R,000

GroupGroup20032003

ASSETSASSETSNON-CURRENT ASSETSNON-CURRENT ASSETS

447 471447 471 214 907214 907 231 320231 320 224 062224 062

CURRENT ASSETSCURRENT ASSETS 115 525115 525 163 146163 146 191 029191 029 213 722213 722

TOTAL ASSETSTOTAL ASSETS 562 996562 996 378 053378 053 422 349422 349 437 784437 784

EQUITY AND LIABILITIESEQUITY AND LIABILITIES

CAPITAL AND RESERVESCAPITAL AND RESERVES126 507126 507 (78 247)(78 247) 224 104224 104 231 398231 398

NON-CURRENT LIABILITIESNON-CURRENT LIABILITIES 314 640314 640 322 236322 236 66 95666 956 68 86368 863

CURRENT LIABILITIESCURRENT LIABILITIES 121 849121 849 134 064134 064 131 289131 289 137 523137 523

TOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIES 562 996562 996 378 053378 053 422 349422 349 437 784437 784


Financial ServicesFinancial ServicesNECSA GROUP

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

2002 2003 2004 2005 2006 2007 2008 2009

INCOME EXPENDITURE PROFIT(LOSS) BEFORE TAX

ACTUAL BUDGET

NECSA GOVERNMENT GRANT APPORTIONMENT

0

50

100

150

200

250

300

350

400

450

2002 2003 2004 2005 2006 2007

OPERATIONAL LOANS INTEREST D&D POST RETIREMENT


Financial ServicesFinancial ServicesNECSA RESOURCE COSTS: MAR 2004

RELATIVE SHARE OF EXPENSES

CAPITAL COSTS

5%

LABOUR COSTS

53%

"OTHER"

OPERATIONAL COSTS

33%

OPERATING MATERIAL COSTS

9%


Financial ServicesFinancial Services

FOREIGN SALES & EXCHANGE RATES

0

5

10

15

20

Mar-01 Mar-02 Apr-03 May-03 J un-03 J ul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 J an-03 Febr-03

Mar-030

2

4

6

8

10

12

Foreign sales US $ EURO

Necsa’s current Necsa’s current challenges challenges

Implementation of a Necsa-wide Implementation of a Necsa-wide Recovery PlanRecovery Plan

Financial constraints led to a decision Financial constraints led to a decision on non no salary increase for 2004/05 review o salary increase for 2004/05 review periodperiod

annual salary increasesannual salary increases

HTP turnaround strategyHTP turnaround strategy

Austerity ApproachAusterity Approach

Reduction of Expenditure.Reduction of Expenditure.

Reduce over-head costReduce over-head cost

ESOP Scheme.ESOP Scheme.

Manage down leave liabilityManage down leave liability

Manage austerity measures stringentlyManage austerity measures stringently

Special Performance Reward.Special Performance Reward.

Combat fraud and corruptionCombat fraud and corruption

Services rendered within Necsa, to be sourced within first before Services rendered within Necsa, to be sourced within first before external contractors are commissioned. external contractors are commissioned.

Recovery Plan Recovery Plan process processDivisionDivision Austerity R’MAusterity R’M Additional Additional

R’MR’MTotalTotal

R’MR’M

CEOCEO 1,51,5 5,05,0 6,56,5

CSCS 1,81,8 1,01,0 2,82,8

FSFS 1,61,6 1,01,0 2,62,6

FMFM 5,05,0 3,03,0 8,08,0

NSNS 9,09,0 5,05,0 14,014,0

NTNT 13,013,0 7,07,0 20,020,0

NTPNTP 13,013,0 13,013,0

HTPHTP 35,035,0

SALARY SALARY REVIEWREVIEW

12,012,0 12,012,0

TOTALTOTAL 113,9113,9

ProjectsProjectsBuild Strategic FunctionBuild Strategic Function

Marketing: Marketing: Gvt, Corporate, Banking Sector, Local & internationalGvt, Corporate, Banking Sector, Local & international

Oversight: Oversight: Audit and InvestigationAudit and Investigation

Strategic ProjectsStrategic Projects

PBMR: PBMR: Join BoDJoin BoD

Project Project ““ithemba lethuithemba lethu””

Peldev to CSIR: Peldev to CSIR: PRMA Liability: PRMA Liability: Jointly with CS & FSJointly with CS & FS

Silicon BeneficiationSilicon Beneficiation

Fund RaisingFund RaisingCorporate: Corporate: R 250 mR 250 mNTP: NTP: R 25 mR 25 mSecurity: Security: R 9 m R 9 mFluorine Fluorine R 92 m (less R21M included R 92 m (less R21M included under under

HTP)HTP)STEFSTEF R 25 mR 25 mPSIPSI R 5 mR 5 m

The challenge ahead…..Sustaining profitability & growth

VISION 2010 :

Strategy for growth

NECSA : Vision 2010Where are we …

1988 20042002 2007 2010

Phase 1

Phase 2

Phase 3

Tu

rn a

rou

nd

gro

wth

co

ns

olid

atio

n

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 TransformationRestructuring and Transformation

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

Political InterventionPolitical Intervention

• Financial Support for the Infrastructure Financial Support for the Infrastructure RegenerationRegeneration

• Security UpgradeSecurity Upgrade

• SAFARI I ConversionSAFARI I Conversion

• Funding for PRMA LiabilityFunding for PRMA Liability

• Support for Necsa”s Participation in the Support for Necsa”s Participation in the PBMRPBMR

• Funding for Skills Transfer and Funding for Skills Transfer and RedevelopmentRedevelopment

ImagineImagine……….……….A world where people stopped shaking in A world where people stopped shaking in

the boots at the mention of radioactivity. the boots at the mention of radioactivity.

………………

A world where nuclear didn’t conjure up A world where nuclear didn’t conjure up

emotions of danger and fear of the emotions of danger and fear of the

unknown…………… unknown……………

Where nuclear didn’t mean secrecy, Where nuclear didn’t mean secrecy,

Hiroshima, and weapon of massHiroshima, and weapon of mass

destruction destruction

But rather nuclear equaledBut rather nuclear equaled lifelife………………….…………………. ImagineImagine

We are an example to the world

We co-operate across Africaand the globe to promote

the safe application of

nuclear technology

Using nuclear analytical technology, we help unravel the history of our universe

We help unlock mysteries of our creation

We provide facilities in supportof nature conservation

We ensure that your children will see today’s endangered species tomorrow

We create tomorrows technology leaders

Skills development is a priority at Necsa, and we transfer our vast scientific skills to future leaders

We work relentlessly to improve your health

With our range of medical products, we help your doctor to diagnose and treat diseases

We connect you

Irradiated silicon and specialized gases from NECSA, are used in theproduction of microchips, which make your cell phone and computer smarter

We help bring you the best things life has to offer

Products from Necsa are used in the production of luxury items such as crystal glass, diamonds and sports cars

We make your car more environmentally friendly

With fuel tanks treated at NECSA, your car is friendlier to the environment

We help you find your way

Our luminescent lights help you

find your way at the movies,

and in the event of a power failure

We uplift your community

Through the establishment

of the Necsa Eco-Industrial

TechnologyPark,

we attract businesses, which provide employment

to our surrounding communities

PartnerPartner

Teamwork

TrustOpen

Engage

Respectdedicated

Reliable

Professional

Dedicated

We value the contribution of each and every one in the NECSA team

We include our communities and our actions are transparent

We build our relationships through respect and trust

ExcellenceExcellence

World-class

MeticulousDedicated

QualityWe are dedicated to excellence in all of our efforts

We exceed expectations

Perseverance

Cutting Edge

Life EnhancingLife Enhancing

Our actions impact positively on Our actions impact positively on lifelife

We add value in all that we doWe add value in all that we do

Imaginative

Visionary

Impact

Proactive

Progressive

innovative

empower

EntrepreneurialEntrepreneurial

We are passionate about our We are passionate about our businessbusiness

We tirelessly strive to meet ourWe tirelessly strive to meet our

customer’s needscustomer’s needs

Ambitious Passionate

Customer focusedSolutions

driven

successful

agile

resilient

LeaderLeader

We are a proven source of authorityWe are a proven source of authority

We are leaders in the development and We are leaders in the development and application of standards and application of standards and benchmarksbenchmarks

Expert

Proven

Knowledge drivenBenchmark

Confident

ResponsibleResponsible

We practice sound governanceWe practice sound governance

We are the trusted custodians of We are the trusted custodians of safety, health and the environmentsafety, health and the environment

Nurturing and personal

Accountable

Protective

Commitment

conscience

NurturingVigilant

Integrity

QUESTIONS

Documents

Presented by: Senti Thobejane Chief Executive 03 November 2004 Capitalising on nuclear technology’s ability to enhance life