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 (
