Second Issue - 2017
Denel participated at the world’s leading and largest defence and technology exhibition, DSEI 2017, held in London in September. DENEL GROUP VALUES
PERFORMANCE WE EMBRACE OPERATIONAL EXCELLENCE.
INTEGRITY WE ARE HONEST, TRUTHFUL AND ETHICAL.
INNOVATION WE CREATE SUSTAINABLE INVESTMENT SOLUTIONS.
CARING WE CARE FOR OUR PEOPLE, CUSTOMERS, COMMUNITIES, NATIONS AND THE ENVIRONMENT.
ACCOUNTABILITY WE TAKE RESPONSIBILITY FOR ALL OUR ACTIONS. Contents
Issue highlights 2 Editor-in-Chief
3 Message from the Acting Group CEO
4 Creating value for the customer under challenging economic conditions
6 Denel exits the Denel Asia JV
7 New talent set to take Denel into the future
10 8 Mainstreaming transformation and innovation
10 Denel targets world’s top defence show
11 Prominent presence in Poland
12 New Sovereign Security Solutions at Denel
13 Turbo growth for Denel Aeronautics family
13 Careers in full throttle at Newcastle Airshow
12 14 Inspired to live Madiba’s values
15 Careers abound: air and ground
15 Denel treks to Utrecht to inspire the youth
16 Cyber Netiquette
17 Youngsters do the maths at holiday camps
18 More Casspirs for the continental fleet
17 19 Talented trio armed with core stem skills
19 Top-shelf delivery record for top shells
20 Solomon mines his creative depths to take solar to hot new heights
Editor’s Note 18 We’re proud to share with you our second edition of Denel Insights. We hope you enjoy reading it as much as we enjoyed putting it together. Denel Insights is a quarterly newsletter to keep you – our stakeholders – informed about the programmes and developments taking place at Denel Corporate Office and in the business units of our group. We would love to hear what you think about the publication and we welcome your suggestions on stories you would like to read. Please email your letter to the editor to [email protected], and include your name and contact details. We look forward to hearing from you. 20 Pamela Malinda
Second Issue 2017 1 Denel Insights, is a fitting showcase for the achievements and successes of Denel in recent months, and encapsulates in a few pages packed with interesting and informative news.
Ms Vuyelwa Qinga
Editor-in-Chief
his, our second edition of Denel Insights, is a fitting many considering their career options. We participated in showcase for the achievements and successes of Denel SAA’s youth career summit and a similar event held in Utrecht, Tin recent months, and encapsulates in a few pages, our KwaZulu-Natal. A particularly exciting initiative during the month progress on the road to creating value for the customer and was the funding of three young female engineers on a week- ensuring transformation for our own sustainability and the good long programme for women in innovation in Kigali, Rwanda. of society. On page 16, you will find helpful hints on how to be safe in Undoubtedly the highlight of these past few months was the cyberspace. We urge that you read and re-read these, as they release of our financial results, which is explored in great detail may save you from the clutches of fraudsters and scamsters out in the pages of this issue. These figures reflect an organisation on to get their greedy hands on your hard-earned money. the up, but one that is realistic in acknowledging the challenges it must tackle and overcome to fulfil its potential. And, as you Our appearances on the continental and international stages read, the organisation has made several key appointments are also among the many stories you will enjoy in Insights aimed at ensuring that this happens. issue 2.
Other developments that will enhance group performance are It has been a pleasure for the editorial team to put this publication the split of Denel Integrated Systems and Maritime (Denel ISM) together and we hope you will agree that it was time well spent. into two business units: Denel Maritime and Denel Sovereign Security Solutions (Denel S3). Read more about this and other Until we close the book on 2017 with our festive issue, keep developments on pages 12 and 13. flying the Denel flag high and proudly.
Youth Month may have been a while ago, but Denel made the most of it at the time, taking its message to the Newcastle Vuyelwa Qinga Airshow, which attracted scores of aircraft enthusiasts - including Group Executive: Communication & Public Affairs
2 Denel – Insights Denel’s recently announced financial results, which are covered in depth on pages 4 and 5 of this issue, reflect a company that has conquered challenges and emerged stronger.
Mr Zwelakhe Ntshepe
Message from the Acting Group CEO
n the face of the tough economic conditions with which business The audit report was submitted to the Denel Audit and Risk today has to contend, the group was able to maintain revenue Committee meeting, which was attended by the Auditor General Ilevels above the R8 billion mark and increase exports by 5%, representative, and was approved with no objections. commendable achievements by any standard. Profitability exceeded target by 9% to end the year at R333 million NPAT. Unless a material event occurred during the audit that was not Return on sales was maintained at a similar level to that of last disclosed to SNG but became evident after the signing of the year. audit report, there is no basis for a change to the report.
While we have great products and services and can be justly We have invited SNG to shed light on any matter that relates proud of both, all credit for our performance must go to all our to the issue, but, to date, we have not received any feedback. employees for their continued commitment to the organisation and Furthermore, if this was the result of an SNG error, the amendment their desire to play a meaningful role in the realising our vision. would need to be on the basis that the undisclosed information is material, which is not the case, since all the information was But, as we all know, doing business today is not without its disclosed in the integrated report. challenges and controversies. You will probably have seen or heard mention in the media of the questions being raised about The report was tabled at the annual general meeting of 25 August our audit report, with allegations be made of our reluctance to 2017 and was adopted, with an instruction that Denel and SNG release an adjusted report - an unqualified audit with irregular must resolve their differences. expenditure. Any further developments will be made public and communicated The fact is that all matters relating to the irregular expenditure in our next issue of Insights. incurred in the 2017 financial year have been fully disclosed in the integrated report, the content of which was thoroughly reviewed Once again, my sincere thanks to each one of our stakeholders by SizweNtsalubaGobodo (SNG) before it was signed off its for your continued support in the 2016/17 year and for helping audit report. SNG has extensive knowledge of our business and us to create a firm foundation for success in 2017/18. its key risk areas, among them irregular expenditure.
For this financial year, SNG – unhindered in any way - conducted Zwelakhe Ntshepe an independent audit based on account standard operating Acting Group CEO procedures and drawing on information and accounting records, including details of the irregular expenditure, supplied willingly by Denel.
Second Issue 2017 3 Creating value for the customer under challenging economic conditions
Denel has emerged from 2016/17 - another challenging global economic period - with a better-than-anticipated performance. Neither local nor international conditions have been conducive to growth.
ost sensitivity and competition are have been available to the group. Credit The 2016/17 results demonstrate the increasing, forcing organisations must go to anchor clients, the Ministry of resilience of the business. Revenue levels Cto implement cost-cutting decisions Defence and Veterans, Armscor and the were maintained above the R8 billion to maintain acceptable financial South African National Defence Force mark, recording a moderate 2.5% performance. Denel has not been immune. (SANDF) for much of the product portfolio reduction in turnover compared to the and technology funding. It perfectly prior year. Exports increased by 5% and However, the resilience and hard work of demonstrates the mutual benefit that can now account for 63% of the group’s employees have seen the group through be derived from collaborating government total revenue. Relationships with foreign and it remains poised for growth and entities. With more than 75% of both the clients continue to grow, with long-term assured of sustainability. Credit must go, local and export work being localised partnerships secured on strategic projects. too, to suppliers and clients, who have back to South Africa by Denel, the local walked with Denel every step of the way defence industry benefits substantially from Profitability continued to be satisfactory through the last year. this partnership. and exceeded set targets by 9%, posting a total of R333 million net profit before tax. In the process, hard decisions have had Going forward, the strategy to create Return on sales was 4%, which was in line to be taken, but the time has come to value for our shareholder and the people with the prior year’s 4.8%. This year-to-year capitalise on the resultant gains. Some of South Africa will be guided by: maintenance of profitability was achieved divisions have been consolidated and new • Strengthened customer and stakeholder in spite of a reduction in sales in real terms capability areas are being developed. relationships in support of long-term (inflation factored) and is attributable to the This has all happened against a backdrop business prospects; group’s cost containment discipline. intense media scrutiny of state-owned • Efficiency, productivity and profitability; companies, which has caused reputational The group has initiated a strategic drive to damage to the Denel brand. • Creating capacity for cash generation; further reduce the 18% OPEX percentage • Enhanced capabilities and innovation; to sales closer to the 14% range. With the The group has always demonstrated and tough and volatile international trading agility in identifying trends and positioning conditions, Denel returned profitability itself to respond to opportunities. Into the • The creation of a dynamic and vibrant in spite of a forex loss of R232 million 2017/18 year and beyond, the group organisation. booked for the year. The current debt-to- will continue to seek closer cooperation equity ratio of 1.2:1 is still unacceptable and alignment locally and within the Growing order book at the and plans are already in place to bring it international defence and research core down. An important key lever in ensuring communities, forging alliances that will Denel’s long-term sustainability is optimising see it benefit from global expertise, The core of the growth strategy is the cost structure through operational continuously enhance its product offering maintaining a continuous increase in the excellence. and penetrate new markets. Already more order book and managing cash flow, both than 60% of revenue comes from exports of which will be made possible through Staying sharp at the and the future business outlook is bolstered strong relationships with key clients, cutting edge by a strong order pipeline in excess of R40 suppliers, stakeholders and, above all, billion. active political support from government The speed of change, accompanied by on export opportunities. Existing global a global shift towards asymmetric conflict, Based on these substantial exports, Denel partnerships will continue to be leveraged has increased the impetus for Denel to is able to maintain, expand and build on to secure future business. Certain divisions be at the cutting edge of innovation in a broad scope of sovereign and strategic have been consolidated and initiatives the defence and technology sectors. technologies that would otherwise not launched to diversify business offerings. The group already meets many of the
4 Denel – Insights ECONOMIC Cash Borrowings R2 021m R3 265m R2 003m | 2016 R3 717m | 2016 Debt to Revenue equity R8bn R8.2bn | 2016 R&D 1.2:1 Net profit 1.6:1 | 2016 R333m R609m R395m | 2016 R550m | 2016
SANDF’s land, sea and air requirements, by Africans aimed at opportunities locally Orders far and wide and it expanded its capabilities into the as well as in the rest of the African market. cyberspace environment, where cyber The Denel footprint is being extended in threats impact on national security and Communities and the key export markets of the Middle East economic interests. individuals and the Asia-Pacific region. Denel Vehicle Systems has successfully delivered N35 To this effect, the establishment of Denel values and prioritises its contribution 4x4 vehicles to a customer in the United the Denel Tactical Cyber Command to the national socio-economic Arab Emirates and has received further Centre (DTC3) was an important step imperatives of government. These include orders for RG12 and RG31 mine-resistant towards strengthening South Africa’s skills development, job creation and vehicles. sovereign capabilities in critical areas transformation. The group’s Mentorship and in stimulating growth of research and Programme ensures that younger Operational excellence development in highly specialised sectors. employees are given the necessary support to enhance their development as In the past financial year, the group Denel has ongoing discussions with the they enter their careers of choice. completed the consolidation of its aviation- South African Air Force (SAAF) and the related businesses at the Kempton Park Department of Defence on upgrading the The transformation of Denel’s business is campus, resulting in the establishment of current Rooivalk Mk1F fleet. The world- a non-negotiable that is implemented in Denel Aeronautics. The objective is to class capabilities of the Rooivalk combat a responsible manner across the group. improve efficiency and productivity and helicopter have strengthened Denel’s Currently, black employees make up optimise cost structures through operational reputation as a globally respected defence 62% of the workforce, while female excellence. manufacturer. The Rooivalk is unrivalled in representation has grown to 26%. During providing forces with protection, mobility the past year, 84% of new appointments Denel Aeronautics is the leading aerospace and firepower. It provides Denel with came from African, coloured and Indian company in Africa and a powerhouse in lucrative opportunities both locally and communities; with more than 50% being design, manufacturing and MRO solutions internationally, which it is relentlessly female. Further improvements are among to both military and commercial sectors pursuing. the targets for 2017/18. on the continent. It continues to deliver on delivery commitments for the world’s most Among the new Denel products showcased Denel would not exist without the support advanced military airlifter, the A400M. at the 2016 Africa, Aerospace and of and relationships with its communities. Defence (AAD) trade exhibition was the The group places a high premium on Denel has also grown its footprint in the Denel Machine Gun-5 (DMG-5), was a national socio-economic imperatives, aviation sector, with the full acquisition new-generation lightweight gun that opens including transformation and skills of Turbomeca Africa (TMA), after the up opportunities in regions such as South development. In the past year, significant Competition Commission approved the America, Middle East and Asia. financial resources have been allocated transaction subject to certain human capital to the flagship corporate social investment conditions. TMA manufactures engine The launch of Africa Truck reinforced project, the Schools Outreach Programme components – including gears, gearbox Denel’s ability to deliver products (SOP). This programme provides extra casings, shafts and couplings – for designed to meet the unique requirements maths and science tuition to learners in Safran Helicopter Engines. It supports 40 of the SANDF, especially in its deployment historically disadvantaged areas. It covers customers in 20 countries, including SAAF, during peacekeeping operations on Eastern Cape, KwaZulu-Natal, Limpopo, the South African Police Service (SAPS) the continent. This is a national flagship Free State, Mpumalanga, North West and a number of civilian air operators. programme providing an African solution and Gauteng.
Second Issue 2017 5 Denel exits the Denel Asia JV
When Denel SOC was inducted into the Top 100 Global Defence Companies hall of fame in 2015, no one could have predicted that the company would work its way up from the 97th to the 84th position within two years.
he climb up to this position has been key to Denel’s growth; and this included the with National Treasury, which have been as a result of relentless efforts by the Asia Pacific market. This market continues widely covered in the media, at times Tgroup claiming market-share in the to be a focus area for Denel because of its based on perceptions and not fact. highly competitive global defence market. demand for defence equipment which has The Denel Asia JV became the focus of seen year-on-year increases in spending - negative attention from the media to the It was the gradual decline on local in excess of 20% - making it one of the top detriment of the Denel brand, both locally defence spend in recent years that forced spending regions on defence equipment in and internationally. Denel to look to global markets if the the world. company was to survive into the future as Denel also conducted continuous a business. Local defence spend currently It was therefore in search of opportunities assessments of the untenable atmosphere sits at less than 1.3% of GDP, compared to in this market that Denel established a Joint caused by the establishment of this JV; international benchmarks of 2 to 5%. Venture (JV) company with VR Laser Asia in and took a resolution to exit the Denel 2016. It is our view that this business case Asia JV and explore alternative marketing For Denel’s commercial mandate to be was done in compliance with all legislative approaches to access the Asia Pacific sustained into the future there is no other governance processes. The business market. way but to look beyond the borders of our case that was submitted in 2015 to both country. Our business strategy was thus departments – i.e. Public Enterprises and This therefore brings us to a point where designed at the back of a decline in the National Treasury - remains valid and we can officially report that Denel SOC local market. relevant. has ended its involvement in the Denel Asia JV. We have exited the JV. In pursuing this strategy, we identified Since its establishment, Denel Asia has critical international markets that would be not traded due to differences of opinion
6 Denel – Insights New talent set to take Denel into the future
enel’s strategic direction during its National Gambling Board and recently new growth phase is in extremely completed an executive leadership capable hands, following the programme through Henley Business D Odwa Mhlwana, Group Chief Financial Officer. bolstering of the leadership team with School. the talents of new Group Chief Financial Officer, Odwa Mhlwana, and for As company secretary and group legal Group Company Secretary and Group counsel, she will play a critical role in the Legal Officer, Vuyokazi Xaxa. Both have management of Board matters and provide demonstrated that they are a perfect fit strategic direction to the group’s legal for the group. professionals. “We are confident that she will ensure the maintenance of a robust “The new team members are critical in corporate governance structure at a time creating stability and will contribute to when SOCs are under close scrutiny in the our transformation into a self-sustaining country,” says Zwelakhe. state-owned company,” says acting Vuyo Xaxa, Group Company Secretary and Legal Executive. GCEO, Zwelakhe Ntshepe. Tsepo Monaheng, who joined Denel in 2002 as a programme manager, is the new Both Odwa and Vuyokazi have occupied Group Business Development Manager. executive positions in the defence and He formerly served as the chief executive of public sector environments for more than Denel Dynamics, overseeing the company’s a decade. missile technology and unmanned aerial vehicle systems programmes. Odwa held various leadership positions in the banking sector and the motor The new CEO of Denel Dynamics, Johan industry prior to his appointment as Steyn, has more than 30 years of experience Group Finance Director of defence in the defence industry. A qualified industry company, BAE Land Systems. mechanical engineer, Johan served as a Mxolisi Makhatini, CEO of Denel Vehicle Systems. This company was acquired by Denel programme manager at Armscor prior to in 2014 and renamed Denel Vehicle his appointment as managing director of Systems. In September 2015, Odwa BAE Land Systems (Denel Vehicle Systems). moved to Denel headquarters as acting Group Chief Financial Officer. Mxolisi Makhatini has been appointed CEO of Denel Vehicle Systems. He has a “He has a wealth of leadership degree in electrical engineering from the experience in the defence industry and University of KwaZulu-Natal and previously contributed greatly towards stabilising served as deputy CEO of Denel Land Denel during a very challenging period Systems. in the company’s history,” says Zwelakhe. “We are looking forward to him driving The strengthened leadership team will play Johan Steyn, CEO Denel Dynamics. an exciting new phase in the growth of a pivotal role in the implementation of the our business.” group’s new strategy, which was approved by the Board in June, says Zwelakhe. “I Vuyokazi, an admitted attorney, joined am confident that the team will help us to the group in 2007 and was responsible achieve our strategic objectives of ‘one for legal affairs at Denel Dynamics prior Denel with one vision and one purpose’, to her appointment as acting Group he concludes. Secretary last year. In the past, she headed the legal department of the
Tsepo Monaheng, Group Business Development Executive.
Second Issue 2017 7 Theo Kleynhans, Group Executive: Strategy; Mike |Kgobe, CEO of Denel Aeronautics and Tsepo Thami Mbele, Denel Chief Operating Officer. Monaheng, acting Group Executive: Business Development.
Mainstreaming transformation and innovation
The South African defence industry stands on the brink of a new era. This was the message delivered by Denel Group Chief Operations Officer, Mr Thamsanqa Mbele, at the fourth Aerospace, Maritime and Defence Conference held at the CSIR at the end of September.
hile the industry has become was ‘Mainstreaming transformation and The focus must not fade from a global player in terms of innovation within the South African defence competitiveness, he continued. ‘Improving Wmanufacturing, and research industry’. the competitiveness of the local industry is a and development, more needs to be done critical success factor for all of us. Another to create an enabling environment within For Denel, Mbele explained, transformation challenge is the real impact of disruptive which the defence industry can grow and is a non-negotiable business imperative. technologies on product portfolios, and be truly competitive globally, Mbele told ‘We have taken it upon ourselves to what is referred to as the fourth Industrial those present, among them Secretary drive transformation in our business as Revolution. There is also clearly a need of Defence, Dr Sam Gulube, and Chief well as within the supply value chain,’ he to create a viable new value offering Executive of Armscor, Kevin Wakeford. explained. ‘We have made it an area of that goes beyond the product to include focus to ensure that we reflect South Africa global industrial partnerships. So clearly, In addition, he continued, the rate of in all respects, and that companies that partnerships are crucial for sustainable transformation is far from where it should want to do business with us ensure that growth. be. ‘The fact that it’s only in the past year they have embraced transformation in both or so that we put together the Defence word and deed.’ ‘The future looks very bright, but the B-BBEE Charter is an indictment on all of challenges facing us now are maintaining us,’ he said. At present, only 27% of Denel’s R815 the relevance of our products and million local procurement spend goes sustaining our markets and value networks. In the light of this, it was appropriate then to black suppliers, a situation that is not The answer is innovation, innovation and that the theme for this year’s conference sustainable, Mbele stressed. innovation. South Africa has an abundance
8 Denel – Insights Celia Malahlela, acting GM of Denel Industrial Stephan Burger, CEO of Denel Land Systems. Patrick Ndhlovu, Senior Manager: Programmes. Properties.
Mr Albert Africa, Business Development executive, Ms Vuyelwa Qinga, Group Executive: Communications and Public Affairs; Mr Llewellyn Hartnick from Reutech.
of youth, who must be brought into our control, and changing the pace of R&D companies to lead the charge and take us and innovation. to the next level of product development and innovation. How many of us in this ‘We are at a crossroads: Innovate or risk room can come up with competitive disappearing,’ Mbele concluded. ‘We solutions to deal with the cyber threat must open doors and explore opportunities looming over the entire global community? for business partnerships that can deliver Research indicates that the impact of on the growing needs of the defence and disruptive technologies will mature fully security sectors, while taking cognisance over the next 10 to 15 years. We need of the real imperative for us to drive to be ready.’ transformation and innovation. It’s not Ms Vuyelwa Qinga, Group Executive: Communications and Public Affairs; Mr Victor only for our businesses, but for our long- Xaba, acting CEO at South African Express and The rapid growth in cyber-related term sustainability in South Africa, southern Ms Thabisa Mgwebi from Reutech. technologies has had a substantial impact African, the continent and the entire global on command and control, and on the village.’ interoperability of systems. This includes cyber-crime, cyber-warfare and cyber- terrorism; asymmetric command and
Second Issue 2017 9 Denel targets world’s top defence show
The world’s leading and largest defence and technology exhibition, Defence and Security Equipment International (DSEI) 2017, held in London in September, would not be so but for the participation of major players such as Denel.
he biennial show attracts more than • The GI-30 rapid-fire CamGun on mount • The PTV transport vehicle designed by 35 000 defence decision-makers, – able to fire up to 100 rounds a minute LMT Holdings and used to transport Theads of armed services and industry with an effective range of 4 000 metres. high-risk prisoners and high-value representatives to the London Docklands. assets. It is accompanied by several international • Variants of the Casspir mine-protected conferences and seminars. vehicle, which offers superior protection The group’s participation in DSEI followed against landmines and ordnance, and its involvement in a similar exhibition in “This was a prime opportunity for Denel widely-used by peacekeeping and Poland (see story on page ??) and forms to display its products, knowhow and humanitarian services. part of the company’s drive to expand its proficiencies to a wide-range of defence presence in key export markets. Currently, decision-makers,” says acting Group • Machine guns and anti-materiel rifles Denel markets products in eight western CEO, Zwelakhe Ntshepe. “Our exhibition manufactured by Denel Land Systems, and central European countries, including focused strongly on our landward defence including the DMG-5 and SS77 machine Sweden, Germany, Poland, Italy and and infantry support systems. guns, and the NTW 20mm rifle. Romania.
“Many countries attending are currently • Mine-protected vehicles manufactured “As one of the leading defence companies modernising their armed forces and by Denel Vehicle Systems and deployed in the southern hemisphere, we use these reassessing their defence requirements in both the defence and the civilian events to demonstrate to European clients to meet the challenges of a changing protection industries. that our products can also meet their geopolitical environment. We’re confident changing security needs,” says Zwelakhe. that our tried and tested products can • The PAW-20 personal assault weapon penetrate these important markets.” and various ammunition ranges produced by Denel PMP. On show in the Denel area were:
10 Denel – Insights Prominent presence in Poland
Poland hosted central and eastern Europe’s most prominent defence and technology exhibition - the International Defence Industry Exhibition (MSPO) – in September, and Denel was there to show off its expertise.
ow in its 25th year, the expo as the PAW-20 personal assault weapon, LMT Holdings provided information on attracts heads of armed forces, which fires grenades over 400 metres with their military vehicles and mine-protection Ninfluential defence personnel, pinpoint accuracy. technology. analysts and media from across Europe to the historic city of Kielce to view the The Denel Overberg Test Range was MSPO was another winning component latest equipment and solutions. Exhibiting also highlighted, positioned as one of the in the Denel marketing arsenal in 2017. for the second time, Denel set its sights most advanced facilities in the southern Consistently bringing in more than 600 on stimulating the interest of countries hemisphere for the testing of aircraft exhibitors from 46 countries, and with modernising their armed forces with the weapon systems, missiles and unmanned around 22 000 visitors surging through the best in landward defence, armoured aerial vehicles. The range has hosted a gates over five days, it certainly was worth vehicles, mine-protected vehicles and number of European defence forces in the 14 500km journey. infantry weapon systems. recent years.
In Denel’s sights were Romania, Denel Land Systems showcased its Kazakhstan, Serbia, Italy and Sweden, in prowess in landward defence, focusing particular. particularly on its track record in the design and manufacturing of artillery systems, Denel PMP displayed its small- and infantry combat vehicles and combat medium-calibre ammunition range as well turrets. Both Denel Vehicle Systems and
Second Issue 2017 11 DTC3 DENEL S3
New Sovereign Security Solutions at Denel
Denel Integrated Systems and Maritime (Denel ISM) has split into two business units, namely Denel Maritime and Denel Sovereign Security Solutions (Denel S3).
hen Denel ISM was Denel Sovereign Security Solutions (Denel partnerships and cooperation on various established in December S3), based at Irene campus, will establish projects,” says Theo, who, given the high W2014, it enabled the group to the Denel Tactical Cyber Command priority of Denel S3 activities, will report diversify into the maritime, sovereign and Centre (DTC3). Starting with a basic directly to the acting GCEO. non-defence security domains. “We need cyber-security operations centre, it will increased focus in these areas to realise provide Denel with protection against Elaborating on the need for two divisions, our business objectives,” acting GCEO, cyber threats. Zwelakhe says: “The split gives us the Zwelakhe Ntshepe, said at the time. “This opportunity to place the company’s is a step in the right direction and signifies Ultimately, DTC3 will protect defence and developmental agenda at the very heart of promising growth in new capabilities.” security interests through accredited cyber- expanding and building new capabilities. security services aligned to the National Denel Maritime, located in the hometown Cybersecurity Policy Framework (NCPF), “The move is exciting and encouraging for of the South African Navy (SAN) and the Defence Review 2015 and the the continued viability and growth of our naval dockyard in Simon’s Town, Western National Security Strategy. company.” Cape, is headed by Ismail Dockrat. Its primary focus will be the management, DTC3 will ensure that the organisation’s Translating the opportunities into profitable operation and commercialisation of the leadership, staff, policies, processes, projects will require significant capacity dockyard, and it is ideally positioned to practices and technologies provide building, he adds, and that means an enable Denel to participate easily in naval ongoing oversight, management, intensive recruitment drive in the coming projects and ensure maximum operational performance measurement and course months. availability of the SAN fleet for effective correction of all cyber-security activities. protection of South Africa’s large maritime “Recruitment, training and skills borders and resources. Responsibilities Headed by the current Group Executive development programmes for both units also include the naval base at Salisbury for Strategy, Theo Kleynhans, the division will provide us with an opportunity to further Island in Durban. will intensify efforts to secure projects in expand and strengthen the Denel Group’s command and control, communications, transformation agenda,” he explains. The division’s long-term vision is to become computers, intelligence, surveillance and a leading developmental player in the reconnaissance (C4ISR) solutions within Black women and youth, in particular, will southern African region. It will establish national and provincial security institutions be targeted, with preferential procurement a market position in line with the national and/or government departments. and focused enterprise supplier vision of Operation Phakisa. development ensuring that previously “We will also coordinate the group’s marginalised groups are developed into relationship with the CSIR, aimed at enduring suppliers.
12 Denel – Insights Turbo growth for Denel Aeronautics family
The first day of September certainly put a spring in Denel’s step, as the group welcomed aboard the restructured Turbomeca Africa.
New Sovereign Security Solutions at Denel
he move follows the completion of manufacturing and maintenance repair Following the latest development, the regulatory and legislative processes, and overhaul (MRO) capability. In June retained employees and capabilities form Tincluding approvals in terms of the 2016, Safran announced its intention part of the aircraft engine MRO, special Public Finance Management Act, the to restructure Turbomeca Africa in a processes and the materials technology Competition Commission and the South depressed world helicopter market. It function, which will ensure continued SAAF African Reserve Bank, and the restructure would exit the manufacturing business and support. of Turbomeca Africa into Safran Helicopter retain the engine MRO business, which, Engines. after extensive engagements between The boost will enable Denel Aeronautics Denel and Safran Helicopter Engines, was not only to support SAAF, but to expand its It was a marriage 15 years in the making. transferred to Denel to ensure continued business footprint in other markets in both In 2002, Safran Helicopter Engines and support to the South African Air Force military and civil aviation. It also provides Denel concluded an equity partnership (SAAF) Oryx medium transport helicopter, the launch-pad for a diversification strategy establishing Turbomeca Africa (a 51% Rooivalk attack helicopter and Leonardo focused on ensuring long-term sustainability Safran and 49% Denel shareholding), A109 light utility helicopter. of the group’s engine capability. thereby creating a world-class engine
Careers in full throttle at Newcastle Airshow The Newcastle Airshow is in its eighth year of success, thanks to the support of major sponsors such as Denel Aeronautics. The 2017 event, held in June, attracted more than 3 000 aircraft enthusiasts.
longside the airshow, the town Denel Aeronautics proactively promotes sharing stories about qualified artisans also hosted a career where aviation as a career by sharing knowledge who made it into aviation careers, “we ADenel participated, advising with youngsters, especially in rural create a love for and stimulate interest around 1 000 learners who attended communities. Duduzile Malatse shared her in the aeronautics industry and the and showed interest in aviation careers. career story at the event. Mike Kgobe, wonderful career prospects it offers”. The South African Air Force was there, Denel Aeronautics CEO says, that by and the Chief of the South African Air Force attended.
Second Issue 2017 13 Inspired to live Madiba’s values
South Africa has put July firmly on the world events calendar, with Mandela Month commemorated and celebrated the world over.
A group photo of the teacher, learners and team from Denel Dynamics. It was a good experience and the school is appreciative of Denel making a positive difference!
Thendo Managa, the Chief Technology Manager Mobile library handover to an early childhood at Denel Dynamics handing over the Defence made development centre (ecdc) in Mooiplaas. Easy book to the principle leader at the school.
ith the UN General Assembly will determine the significance of the life of six mobile libraries to various needy unanimously launching Inter- we lead.” communities, such as the Moleboheng Wnational Mandela Day on 18 Day Care Centre in Mooiplaas, Pretoria July 2009, it was one small step to making In this spirit, Denel joined millions around West, and Irene Middle School, which it a month-long event. the world to remember the country’s serves the farming community around beloved Madiba. Irene. Three of these libraries went to high Many a true word was uttered by the schools with deserving learners. former South African president and global Appropriately in honour of the man who statesman Nelson Rolihlahla Mandela, said that ‘education is the most powerful “Denel is part of the broader South African and Denel identifies with the values of the weapon which you can use to change society and the global community that man whose inspiring thoughts included: the world’, Denel Mandela Day activities seeks to make the world a better place,” “What counts in life is not the mere fact took place at several schools. They says acting GCEO Zwelakhe Ntshepe. . that we have lived. It is what difference included the donation of a refurbished “As Madiba told the youth in 2008: ‘It is we have made to the lives of others that container to an under-resourced school for in your hands to make the world a better use as a classroom and the presentation place’.”
14 Denel – Insights Denel treks to Utrecht Careers abound: to inspire the youth
air and ground t the invitation of the Deputy Minister of Public Enterprises, Ben Martins, ADenel participated in the Utrecht To mark Youth Month in June, SAA hosted a career expo and youth supplier forum youth career summit under the theme ‘Limitless alongside other SOCs such as Transnet, Eskom and Safcol. opportunities on the ground and in the sky’ and High schools and further education Denel was a proud participant. and training colleges from the region sent their learners, and small businesses led by youth and women also attended. Denel he summit showcased the wide developmental agenda, SAA – like shared details of the requirements and variety of career options at SAA Denel – contributes to the transformation procedures for inclusion in the SOC supply Tin disciplines such as engineering, of the country by creating economic chain, and promoted its skills programmes. flight operations, aircraft maintenance, empowerment opportunities, as well as A skills programme beneficiary, Nokuthula aviation medicine and aviation law. training and skills development for the Khanyi, attended to chat to interested youth. youngsters. Nokuthula, from Ladysmith, Denel exhibited alongside other SAA matriculated from Intando Yesizwe High stakeholders, including Ekurhuleni As SAA acting CEO, Musa Zwane, School in 2008 and is currently building Metropolitan Municipality, Civil Aviation said at the summit: “Often all it takes for a rewarding career as a member of the Authority, SAPS and the Transport the start of a great career is the seed of Denel Aeronautics team. Education and Training Authority. inspiration to be planted.” Learners were given more detailed information at the SOCs’ stands. The Denel As a state-owned company whose stand was managed by Nkanyiso Msomi, mandate includes supporting the national an artisan from Denel Aeronautics, Theo Kubjana of Denel Land Systems and Solly Thamaga, the corporate social investment representative from Denel Pretoria Metal Pressings.
Paarl expo
Deputy Minister, Ben Martins visited the Denel stand during the career expo.
Denel was present in Paarl for the Minister’s Youth Day Career Expo on 16 June.
Second Issue 2017 15 Cyber attacks are real: Beware! Cyber Netiquette A DTC3 Initiative
Do’s Don'ts
99 Give your email address only to people you know and trust. 88 Don't open email attachments from unknown sources. 99 Scan all email attachments for viruses before opening 88 Don't send, forward or reply to junk email or hoax them. messages. 99 Be wary of emails asking for confidential information— 88 Don’t buy things or make charity donations in response to especially of a financial nature. Legitimate organisations spam email. will never request sensitive information via email. 88 Never respond to or click on pop-up ads that may come 99 Be especially wary of any Microsoft Office email attachment up on your screen. that advises you to enable macros to view its content. 88 Don’t accept any and every request on social networking Unless you are absolutely sure that this is a genuine email sites as these could be imposters’ phishing for your from a trusted source, do not enable macros and instead personal details to use to their advantage. immediately delete the email. 88 Don’t go onto websites that you think are illegitimate, i.e. 99 While you are banking, shopping or paying your bills online, sites that may have an address very similar to a legitimate check if the website’s URL begins with ‘https’. In addition site, but whose pages have misspellings, bad grammar to this, look for the padlock icon, which indicates that the or low resolution images. Don’t download files from any connection is secure. untrusted websites or agree to terms and conditions 99 If possible, use a credit card instead of a debit card for without reading them thoroughly. online transactions, as credit cards have more security 88 When choosing security questions on various websites, than debit cards do. don’t choose options for which the answers can be easily 99 For social media sites, use an email address that you do accessed, such as “What is your mother’s name?” as this not use for important communications. information can be easily retrieved via social media. 99 Hold and hover your mouse over any suspicious links. At 88 Don’t post personal information such as your address, the bottom of your screen, the URL for a website will be email address or contact number on social media. displayed. Many phishing websites will display a different 88 Don’t instal unauthorised programmes on your work link. computer. 99 Turn off file sharing and network discovery when using a public wireless network.
16 Denel – Insights Youngsters do the maths at holiday camps
Learners dring the youth camp.
A technical career will never fly without maths and Enrichment through science expertise. outreach
ith this in mind, Denel gave could be seen, touched and experienced The youth camps are part of Denel’s 244 high school learners from in the workplace,” says Vuyelwa Qinga, CSI campaign, whose flagship WMpumalanga, North West, Group Executive for Communication and project is the School Outreach Limpopo and Gauteng a rare opportunity Public Affairs. Programme (SOP), which provides to brush up on their maths and science enrichment classes to learners from performance through tuition and exposure The camps included drills, exercises, daily disadvantaged communities during to living examples from the innovation that flag-hoisting ceremonies, and, to make it a weekends and school holidays. is embedded in aviation and defence once-in-a-lifetime experience, a flight in an products. SAAF plane on 18 July to mark Mandela The initiative has resulted in pass Day. rates of more than 95% in end-of- This year, the Denel annual youth camps year exams and more than 60% of were hosted at the Denel Aeronautics The attendees received instruction from learners gaining university entrance campus in Kempton Park and in young engineers such as Phumzile Nkosi in science and technology-related Queenstown, Eastern Cape, during the of Denel PMP, Naadira Hassim of Denel courses. school holidays. Aeronautics, and Judith Masemola and Marumo Talane of Denel Land Systems. Camps held in the Free State in Young engineers from Denel gave camp- 2016 are credited with elevating goers extra tuition in algebra, geometry The 10-day Eastern Cape camp in the province to top position in the and science, while SAAF engineers Queenstown hosted 200 learners from country’s matric pass rate rankings brought physical science and mathematical the province and nearby KwaZulu-Natal. last year. concepts to life by offering insights into Seretla Mahlagare, a junior engineer specialised areas such as the principles of from Denel Dynamics, Mike Dlulane, an flight, propulsion and navigation. electronics and computer engineer from Denel Land Systems, and Suna Kutalo and “We gave participants two weeks of solid Lesego Selemela from PMP provided the learning in science and maths, while adding tuition. The Queenstown group also had exciting access to a stimulating environment an opportunity to visit a military base in where theoretical classroom concepts East London.
Second Issue 2017 17 Convoy of Casspirs on route to African client. More Casspirs for the continental fleet Twenty-one Casspir mine-protected vehicles are en route to northern Africa to join 26 delivered in December 2016.
he 45-strong fleet is based on the line. The family of vehicles offers a wide Peter. This is a welcome change from the Denel New Generation Casspir spectrum of solutions in a ‘one force previous situation, where many products TNG2000 Series, a cutting-edge concept’ and a real-force multiplier for any were procured and delivered with very product derived from the well-known and user in an operational theatre. limited or no support.” battle-proven Casspir MPV, 3 000 of which were manufactured. The client in this case ordered eight of In view of the good relationship between the 15 variants available on the Casspir the client and Denel, future orders are a The vehicles are earmarked for a newly platform. The order included troop carriers, real possibility and are expected to include established peace support contingent ambulances, and command and control, a very large number of Casspirs and mine- mainly for African Union (AU) peace cargo, recovery, fire support, and water protected logistical trucks that share the support missions, says Peter Faro, General and fuel variants systems. Denel also offers same drive-train and armoured hull, thus Manager of Mechem, a global leader in training for drivers and technicians, as well reducing the costs of maintenance and the detection and destruction of landmines. as spares to facilitate repairs from levels 1 repair, and fleet management. to 3. The new generation Casspir has improved The new Casspir is doing very well in features, but has retained the affordability, “To strengthen Denel’s commitment, African markets, Peter comments, and easy of maintenance and cost effectiveness we have two in-country technical demand is high. Since 2010, more than that have secured its success. The drive-train representatives who assist the client on 200 vehicles of various variants have been and most components are interchangeable all technical matters, and facilitate fleet sold to clients in Africa and to the United on the 15 variants on the Casspir base management and support training,” says Nations.
18 Denel – Insights Talented trio armed with core stem skills Three young female engineers have sharpened their leadership skills, built networks and been armed with practical tools to thrive in the science, technology, engineering and mathematics (STEM) field through a Denel-funded week-long programme for women in innovation in Kigali, Rwanda as part of Youth Month celebrations.
he programme was in line with the further in areas of critical and scarce skills investment focuses on STEM education, national priority to develop the next and sharing information with peers,” says from school to university or technical Tgeneration of engineers, artisans, Vuyelwa. school and, ultimately, the company. At scientists and researchers, says Vuyelwa times, our beneficiaries are absorbed by Qinga of Denel Group Executive and “The government expects us to be the broader industry, but ultimately, South Public Affairs. The three participants responsive to our mandate and to contribute Africa benefits.” were 26-year-old Robin Nxele, a young to the socio-economic imperatives of our scientist with a Masters of Science degree country, among them skills development. The Kigali initiative supports young scientists in Chemistry; 24-year-old Amy Dove, And, naturally, Denel is committed to and innovators through partnership with a mechanical engineer, and 29-year- developing and finding new opportunities Next Einstein Forum (NEF) and the African old Mahlatsi Machete, a junior systems for bright young minds. Institute for Mathematical Sciences engineer. (AIMS). “Our aim is to contribute to the holistic “This development includes exposure, education and development of young excelling in STEM subjects, studying people as part of our CSI strategy. Our
Top-shelf delivery record for top shells Aerostructures Manufacturing has achieved 70 consecutive on-time deliveries of top shells (TS) for the Airbus A400M military transport aircraft.
he shells constitute roof sections This successful run of on-time deliveries of the pressurised fuselage and started with an aircraft MSN44 build in Tare positioned directly in front 2014, and culminated in the delivery of of the wing section of the aircraft. MSN113 in May 2017. The achievement Aerostructures Manufacturing received thus spans almost three years. But it is the design-to-build contract in 2005 not enough for the project team, which and, to date, has produced 115 ship is determined to clock up even more sets, with the successful completion of consecutive on-time deliveries. aircraft MSN113. “The achievement would not have been As a result of its ship-in-place agreement possible without persistent determination with Airbus, the company is allowed in the face of significant challenges and to produce structures in advance of the continued commitment of employees,” Airbus’s overall build programme. This says Programme Manager, Richard van is performed in accordance with a Wyk. fixed schedule and strict requirements for 100% completion of the physical Well done to all for a sterling top-shell build and the e-CAIR, which details performance. electronically the entire build history of all the produced sets. A400M roll-out.
Second Issue 2017 19 Solomon mines his creative depths to take solar to hot new heights Most people are familiar with the concept of solar energy, but Solomon Smit, an electronics engineer and line manager at the Hardware Development Section at Denel Overberg Test Range, took it to a new level.
s part of a team of five under automatically, while also recharging a After the Pitch@Palace presentation in the leadership of lecturer and battery. London, the South African team headed Aresearcher at the Cape Peninsula for Nairobi, Kenya in May 2017 to attend University of Technology, Dr Wilfred Fritz, The invention, which Solomon and Co call the last round of the competition. Solomon developed an automated solar Water&Solar100, is the first effective and cooker. It focuses the sun’s rays on a pot to low-cost solution for commercial purposes Solomon, who defines himself as a boil water or cook food as an alternative and it won first prize in the environment researcher, innovator, motivator and to electricity for ‘green users’ and people category of the international Phoenix entrepreneur, describes the experience as in underdeveloped areas. Contact Explore International Competition extraordinary, noting especially how many in 2015. potential investors are actually interested For the latter, a key benefit is that the in new companies. With his broadened cooker purifies water by boiling it. Further honours ensued. Following a training knowledge, he would like to initiate session in Rwanda recently, Solomon and plans to encourage the youth of the local Solomon’s brainchild takes the tedious out his team were shortlisted in an innovation community in Bredasdorp to develop their of conventional manual solar cooking, competition hosted by the Royal Academy own ideas. which requires the user to adjust the focal of Engineering in the United Kingdom. point every two minutes. The automated They pitched the innovation as a business electronic control system relies solely idea to Prince Andrew, Duke of York, and on the sun’s rays to move the solar dish other important investors.
Solomon Smit, from Denel Overberg Test Range, presented his team’s Solomon Smit (left), from Denel Overberg Test Range, and Dr Wilfred Fritz innovation as a business idea to Prince Andrew, The Duke of York, and other with the Auto-track Solar Cooker called Water&Solar100 which they invented. important investors at St. James’s Palace in London.
20 Denel – Insights
DEFENCE TECHNOLOGY MADE EASY
Minah Sindane Bloem Llewellyn Hartnick