Nils Flaatten's Presentation at Cap40 Business Wednesday

Nils Flaatten, CEO

2 July 2014 An inspiring place to do business

Presentation to le Cap 40 at Alliance Française du Cap

GDP Growth per Annum, 2002-2012

An inspiring place to do business

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

RSA 3.7 2.9 4.6 5.3 5.6 5.5 3.6 -1.5 3.1 3.6 2.5

Western Cape

4.3 3.4 5.7 5.9 5.9 6.2 4.3 -1.3 2.8 3.9 3.2-1.5

-0.5

0.5

1.5

2.5

3.5

4.5

5.5

6.5G

row

th (

%)

Population in the Western Cape, 2003-2018


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f

Population

4.950653

5.051106

5.152525

5.2556

5.359976

5.466023

5.573371

5.681999

5.792093

5.904017

6.016928

6.14809703

04

6.2821255456627

2

6.4190758825581

7

6.5590117367979

4

6.7019981926601

3

1

2

3

4

5

6

7

8Po

pula

tion

(milli

ons)

Upward trajectory with a 2% CAGR

WC and SA Education Levels, 2013


No Sch

ooling

- G2

Grade 3

- 7

Grade 8

- 11

Matric

only

Certific

ate an

d diplo

ma only

Matric

and c

ertific

ate di

ploma

Matric

and d

egree

11.5%

17.4%

41.4%

17.6%

3.3% 4.5% 4.4%5.1%

17.4%

43.6%

19.6%

3.6% 4.5% 6.2%

South Africa Western Cape

Western Cape Sectors Contribution to GDP, 2003 - 2012


Mining and quarrying

Electricity, gas and water

Agriculture, forestry and fishing

Construction

Personal services

Transport, storage and communication

General government services

Manufacturing

Wholesale, retail and motor trade; catering and accommodation

Finance, real estate and business services

0 5 10 15 20 25 30

0.2

1.7

4.6

2.9

4.9

9.2

9.3

18.1

14.4

25.5

0.2

2.1

3.7

4.2

5.3

9.1

10.2

11.4

17.9

25.7

2012 2003

04/10/2023

Wholesale, retail and motor trade; catering and accommodation

Finance, real estate and business services

General government services

Construction

Personal services

Transport, storage and communication

Agriculture, forestry and fishing

Manufacturing

Electricity, gas and water

Mining and quarrying

-3% -2% -1% 0% 1% 2% 3% 4% 5%

3.80%

3.60%

3.10%

2.60%

2.30%

2.10%

1.90%

1.80%

0.40%

-1.50%

2.70%

2.70%

3.80%

1.80%

0.90%

2.10%

-0.20%

0.20%

0.90%

-1.90%

CAGR 2008-2012 Growth 2011-2012

Western Cape Sector Growth, 2008 - 2012

Employment By Skill Sector in the Western Cape, 2013


Sector DescriptionFormal And

Informal Employment

- Total

Formal Employment By Skill: Total

Formal Employment

By Skill - Highly Skilled

Formal Employment

By Skill - Skilled

Formal Employment By

Skill- Semi- And Unskilled

Informal Employment

- Total

Wholesale and retail trade, catering and accommodation 420610 232168 29839 158478 43850 188442

Finance, insurance, real estate and business services 352008 308312 68756 195417 44138 43697

Community, social and personal services 275990 206080 18949 31822 155309 69910

General government 229699 229699 88048 109587 32064 0

Manufacturing 229055 191032 23964 65568 101500 38023

Agriculture, forestry and fishing 152952 134784 5153 7848 121783 18168

Construction 106509 52781 3405 10311 39065 53727

Transport, storage and communication 86559 47467 6065 28892 12511 39092

Electricity, gas and water 6575 6473 2315 2294 1864 102

Mining and quarrying 3690 3672 200 737 2734 18

TOTAL1863645 1412465 246694 610954 554817 451179

Employment Composition in the Western Cape, 2008-2013


Agriculture

Mining

Manufacturing

Electricity

Construction

Retail

Communication

Finance

Services

Government

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

8.4%

0.2%

14.6%

0.4%

6.1%

18.6%

3.4%

20.5%

14.0%

13.9%

5.9%

0.4%

12.7%

0.4%

5.4%

19.5%

3.3%

21.0%

14.0%

17.3%

2013 2008

04/10/2023

Western Cape Trade (excluding petroleum), 2003-2013


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Im-port

22.188402401

25.696378304

30.748678447

39.362358076

44.908273961

54.075535883

49.808139099

47.973945329

57.606284591

69.168996293

86.818871082

Ex-port

26.576865595

27.091645142

29.184137917

30.603418135

39.837777088

51.609463104

44.391427933

45.917695094

48.748223014

55.769091278

66.485239382

Trade Bal-ance

4.388463194

1.395266838

-1.564540

53

-8.758939

941

-5.070496

873

-2.466072

779

-5.416711

166

-2.056250

235

-8.858061

577

-13.39990

5015

-20.33363

17

-30

-10

10

30

50

70

90

Va

lue

(b

n)

Top 10 Western Cape Export Markets, 2013


TOP 10 WESTERN CAPE EXPORT MARKETS, 2013

RANK IMPORTERSVALUE 2013

(ZARbn)%

SHARE%

GROWTH 2012-2013

1 Netherlands 6.74 9.00 -0.91

2 United Kingdom 6.66 8.89 25.04

3 Germany 3.85 5.14 25.33

4 Mozambique 3.78 5.05 148.62

5 United States 3.49 4.65 4.38

6 Singapore 2.70 3.61 9.17

7 Japan 2.65 3.53 117.68

8 Angola 2.54 3.40 11.83

9 Kenya 2.29 3.05 64.53

10 China 2.12 2.84 49.39

TOTAL EXPORTS 74.87 100% 16.06%

Source: Quantec, 2014

Top 10 Western Cape Export Markets, 2011-2012




(ZARbn)%

SHARE%

GROWTH 2010-2011

1 Netherlands 5.41 9.9% 8.7%

2 United Kingdom 4.95 9.1% -2.4%

3 Germany 3.12 5.7% 1.4%

4 United States 2.66 4.9% 10.1%

5 Angola 1.84 3.4% 11.7%

6 Republic of Korea 1.82 3.3% 117.3%

7 Mozambique 1.72 3.1% 37.6%

8 Belgium 1.51 2.8% 11.9%

9 Zambia 1.42 2.6% 59.5%

10 China 1.34 2.5% 11.9%

TOTAL EXPORTS 54.7 100% -2.94%




(ZARbn)%

SHARE%

GROWTH 2011-2012

1 Netherlands 6.8 10.52% 25.52%

2 United Kingdom 5.3 8.24% 7.44%

3 United States 3.3 5.17% 27.87%

4 Malaysia 3.1 4.85% 139.56%

5 Germany 3.1 4.75% -1.82%

6 Singapore 3.1 3.83% 209.10%

7 Angola 2.5 3.52% 23.13%

8 UAE 2.3 2.46% 59.43%

9 Zambia 1.6 2.36% 6.54%

10 Mozambique 1.5 2.35% -11.71%

TOTAL EXPORTS 64.6 100% 18.46%

Top 10 Western Cape Import Markets, 2013


TOP 10 WESTERN CAPE IMPORT MARKETS, 2013

RANK EXPORTERSVALUE 2013

(ZARbn)% SHARE % GROWTH

2012-2013

1 Saudi Arabia 37.67 20.19 -0.32

2 China 28.01 15.01 39.27

3 India 16.37 8.77 75.28

4 Nigeria 13.59 7.28 -20.73

5 Germany 8.10 4.34 65.45

6 Singapore 7.54 4.04 75.42

7 United Kingdom 6.58 3.53 21.31

8 Italy 5.24 2.81 38.49

9 United States 4.71 2.52 13.80

10 Netherlands 4.64 2.48 -11.23

TOTAL IMPORTS 186.57 100% 4%


Top 10 Western Cape Import Markets, 2011-2012




(ZARbn)%

SHARE% GROWTH 2010-2011

1 China 17.017 12.13% 24.86%

2 Saudi Arabia 16.68 11.89% 36.85%

3 Iran 15.965 11.38% 26.18%

4 Nigeria 9.768 6.96% 84.38%

5 India 7.936 5.66% 72.30%

6 United Kingdom 6.714 4.78% 46.92%

7 United States 5.709 4.07% 33.61%

8 Angola 5.265 3.75% -41.05%

9 Italy 5.009 3.57% 87.90%

10 Germany 4.456 3.18% 0.80%

TOTAL IMPORTS 140.335 100.00% 33.22%




(ZARbn)% SHARE % GROWTH

2011-2012

1 Saudi Arabia 37.80 21.07% 126.60%

2 China 20.11 11.21% 18.16%

3 Nigeria 17.15 9.56% 75.53%

4 Angola 12.12 6.76% 130.22%

5 India 9.34 5.21% 17.68%

6 Iran (Islamic Republic of) 7.07 3.94% -55.69%

7 United Kingdom 5.43 3.03% -19.15%

8 Netherlands 5.22 2.91% 114.42%

9 Germany 4.90 2.73% 9.87%

10 United Arab Emirates 4.69 2.61% 6.59%

TOTAL IMPORTS 179.42 100% 27.85%

RANK TOP 10 EXPORTSVALUE 2013

(ZARbn)

% GROWTH 2012-2013

1 Oils petroleum, bituminous, distillates, except crude 8.39 -5.32

2 Grape wines(including fortified), alcoholic grape must 7.80 33.26

3 Citrus fruit, fresh or dried 6.58 22.70

4 Apples, pears and quinces, fresh 5.59 53.52

5 Grapes, fresh or dried 4.02 22.27

6 Hot-rolled products, iron/steel, width>600mm, not clad 3.11 7.47

7 Liquid, gas centrifuges, filtering, purifying machines 2.01 -6.23

8 Maize (corn) 1.83 44801.31

9 Fruit, nut, edible plant parts nes, prepared/preserved 1.60 16.90

10 Liqueur, spirits and undenatured ethyl alcohol <80% 1.28 66.28

TOTAL EXPORTS 74.87 16.06

Western Cape export and import products


RANK TOP 10 IMPORTSVALUE 2013

(ZARbn)

% GROWTH 2012-2013

1 Petroleum oils, oils from bituminous minerals, crude 66.39 -16.76

2 Oils petroleum, bituminous, distillates, except crude 33.36 9.42

3 Diodes, transistors, semi-conductors, etc 3.69 1948.99

4 Liqueur, spirits and undenatured ethyl alcohol <80% 2.83 38.63

5 Prepared or preserved fish, fish eggs, caviar 1.67 9.60

6 Medicaments, therapeutic, prophylactic use, in dosage 1.67 73.87

7 Footwear nes, with outer sole, upper rubber or plastic 1.35 -0.98

8 Footwear with uppers of textile materials 1.27 9.51

9 Electric generating sets and rotary converters 1.07 3550.16

10 Machines nes having individual functions 1.03 -3.16

TOTAL IMPORTS 186.57 3.99


Western Cape Exports by Region, 2011


-5% 0% 5% 10% 15% 20% 25%0%

10%

20%

30%

40%

50%

Africa (ZAR11.24bn)

Americas (ZAR4.42bn)

Asia (ZAR12.52bn)

Europe ( ZAR22.12bn)

Oceana (ZAR1.12bn)

Africa Americas Asia Europe Oceania

% Growth 2012 - 2013

Shar

e of

WC

Expo

rts (%

)



0% 5% 10% 15% 20% 25% 30% 35% 40% 45%0%

10%

20%

30%

40%

Africa (ZAR14.14bn)

America (ZAR5.45bn)

Asia (ZAR17.39bn)

Europe (ZAR23.18bn)

Oceana (ZAR1.29bn)


% Growth 2011 - 2012

Shar

e of

WC

Expo

rts (%

)



0% 5% 10% 15% 20% 25% 30% 35% 40%0%

5%

10%

15%

20%

25%

30%

35%

40%

Africa (ZAR18.95bn)

Americas (ZAR5.98bn)

Asia (ZAR18.15bn)

Europe (ZAR27.83bn)

Oceana (ZAR1.41bn)


% Growth 2012 - 2013

Shar

e of

WC

Expo

rts (%

)

Western Cape Imports by Region, 2013


-30% -20% -10% 0% 10% 20% 30% 40%0%

10%

20%

30%

40%

50%

60%

70%

Africa (ZAR30.84bn)

America (ZAR9.93bn)

Asia (ZAR107.24bn)

Europe (ZAR37.62bn)

Oceana (ZAR0.86bn)


% Growth 2013 -2012

Shar

e of

WC

impo

rts (%

)

Western Cape Output & Exports By Sector, 2011


Food, beverages

and to-bacco

Petroleum products, chemicals,

rubber and plastic

Agricul-ture,

forestry and fish-

ing

Metals, metal

products, machinery

and equipment

Transport equipment

Wood, paper,

publishing and print-

ing

Furniture and other manufac-turing

Textiles, clothing

and leather goods

Other non-metal

mineral products

Electrical machinery and appa-

ratus

Radio, TV, in-

struments, watches

and clocks

Mining and quar-

rying

Out-put (ZARm)

42969.2812498946

34431.3208808288

22732.7556678574

20775.9311215511

14780.4199996365

14643.5003246226

10291.7910716976

9688.68487933725

4657.79903942122

3655.14921956322

2190.54566815126

703.808310853653

Ex-port (ZARm)

14287.442231

9824.050855

15539.830517

6168.345978

2086.175898

548.837935

1928.428519

681.779246

157.968323

302.181444

1181.399489

1157.433403

Ex-port %

0.33250363551368

6

0.28532308966601

4

0.68358762765274

0.29689865363490

3

0.14114456138941

3

0.03747996878022

03

0.18737540488002

9

0.07036860569735

42

0.03391480002959

28

0.08267280645688

92

0.53931744321818

2

1.64452932020104

2,500

7,500

12,500

17,500

22,500

27,500

32,500

37,500

42,500

47,500

10%

30%

50%

70%

90%

110%

130%

150%

170%

Value

(ZAR

m)

Export (%)

FDI flows into the Western Cape


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Capex (ZARbn)

3.7131

15.1005

2.903 2.3658

1.6615

8.2148

5.6656

9.6862

5.6722

5.5961

3.9016

Projects

10 8 13 12 10 14 22 28 23 28 24

1.03.05.07.09.0

11.013.015.0

2.5

7.5

12.5

17.5

22.5

27.5

WESTERN CAPE FDI FLOWS, 2003-2013

Value

(ZAR

bn)

Num

ber of Projects

Source: FDI Intelligence, 2014

Breakdown of FDI into the Western Cape


Business Services

Software & IT services

Financial Services

Communi-cations

Transporta-tion

Chemicals Alternative/Renewable

energy

Coal, Oil and Natural

Gas

Consumer Products

Hotels & Tourism

% Projects

0.177083333333333

0.177083333333333

0.078125 0.0677083333333333

0.0572916666666667

0.0364583333333333

0.0364583333333333

0.03125 0.03125 0.03125

% Capex

0.0327541392423124

0.0443421566863729

0.0237420983740796

0.144219018492441

0.0400741930881322

0.0075247672160842

7

0.136463173305377

0.231777408328732

0.0211909355401021

0.0636487987047227

3%

8%

13%

18%

23%

BREAKDOWN OF FDI BY SECTOR, 2003-2013

% S

hare


Top sources of FDI into the Western Cape


UK United States

Nether-lands

Germany France Switzer-land

India Canada China UAE

% Projects

0.255208333333333

0.234375 0.078125 0.0677083333333333

0.0520833333333334

0.03125 0.0260416666666667

0.0208333333333333

0.0208333333333333

0.0208333333333333

% Capex

0.152706869064088

0.197331282064007

0.0552012704635827

0.0653159719852855

0.0579695535387498

0.0090384054689487

0.0173959838958815

0.0092431188392131

6

0.0077170737154236

0.0115120253596442

3%

8%

13%

18%

23%

28%

BREAKDOWN OF FDI BY SOURCE MARKET, 2003-2013

% S

hare


France and Western Cape


Western Cape Trade with France, 2003-2012


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ex-ports (ZARm)

804.221591

1001.928048

1200.328226

1156.581138

1412.272938

2121.800161

1372.051343

1562.148884

1020.354415

921.737506

Im-ports(ZARm)

1188.720236

1273.432194

1215.503985

1476.739941

1886.605948

2665.232555

2339.210043

1918.399335

2703.935024

1932.014016

Trade Bal-ance (ZARm)

-384.49864

5

-271.50414

6

-15.175759

-320.15880

3

-474.33301

-543.43239

4

-967.1587 -356.25045

1

-1683.5806

09

-1010.2765

1

-1750

-1250

-750

-250

250

750

1250

1750

2250

2750

Valu

e (Z

ARm

)

RANK TOP 10 EXPORTSVALUE 2012

(ZARm)

% GROWTH 2011-2012

1 Measuring or checking instruments 108.5 9642.54%

2 Grape wines(including fortified), alcoholic grape must 95.3 21.26%

3 Citrus fruit, fresh or dried 72.9 67.33%

4 Fish fillets, fish meat, mince except liver, roe 67.3 -24.38%

5 Apples, pears and quinces, fresh 65.7 25.64%

6 Liqueur, spirits and undenatured ethyl alcohol <80% 64.1 297.61%

7 Diodes, transistors, semi-conductors, etc 60.8 -85.57%

8 Parts for radio, tv transmission, receive equipment 40.5 114.07%

9 Yachts, pleasure, sports vessels, rowing boats, canoes 39.6 2598.87%

10 Grapes, fresh or dried 37.3 13.95%

TOTAL EXPORTS 921.7 -9.66%

Western Cape exports and imports with France, 2012


RANK TOP 10 IMPORTSVALUE 2012

(ZARm)

% GROWTH 2011-2012

1 Wooden casks, barrels, vats, tubs, 134.8

7.69%

2 Aircraft, spacecraft, satellites123.4

-

3 Blood, antisera, vaccines, toxins and cultures101.2

20214.91%

4 Oils petroleum, bituminous, distillates, except crude

81.5

-92.85%

5 Perfumes and toilet waters71.6

22.08%

6 Stoppers, caps, lids, crown corks, etc off base metal

63.0

-1.91%

7 Tobacco, tobacco substitute products nes58.7

75.74%

8 Gasoline and oil additives45.0

-42.35%

9 Refrigerators, freezers and heat pumps nes44.8

21.83%

10 Acrylic polymers in primary forms43.7

-3.53%

TOTAL IMPORTS1 932.0

-28.55%


FDI From France to the Western Cape, 2003-2013


FDI FROM FRANCE TO THE WESTERN CAPE, 2003 – JUNE 2013

PROJECT DATE

INVESTING COMPANY

DESTINATION CITY INDUSTRY SECTOR SUB-SECTOR INDUSTRY ACTIVITY CAPEX

(ZARm)

Sep-10 Concentrix Solar Not Specified Alternative/Renewable energy Solar electric power Electricity 2666.6

Sep-10 Concentrix Solar Not Specified Alternative/Renewable energy Solar electric power Electricity 2666.6

Mar-10 Tenesol Cape Town Electronic Components All other electrical equipment & components Manufacturing 98.4

Nov-09 Teleperformance Cape Town Business Services Business support services Customer Contact Centre 38.0

Nov-09 Teleperformance Cape Town Business Services Business support services Customer Contact Centre 38.0

Sep-09 AD Software Cape Town Software & IT services Software publishers, except video games Sales, Marketing & Support 63.6

Jun-09 Trusted Logic Cape Town Software & IT services Software publishers, except video games Sales, Marketing & Support 63.6

Mar-09 Solaire Direct Cape Town Electronic Components All other electrical equipment & components Manufacturing 58.7

Jan-09 Diana Group (Groupe Diana) Cape Town Chemicals Paints, coatings, additives

& adhesives Sales, Marketing & Support 66.1

Total 5759.8

Thank you | Dankie | Enkosi

Economy & Finance

Nils Flaatten's Presentation at Cap40 Business Wednesday