Third Issue 2015 New Contracts Milestone to Boost Denel’s Agreement with UN, Armoured a Huge Benefit for Vehicle Business Mechem’s Business Dubai Airshow an Opportunity Denel Support for Denel to Market its Enables Rapid Aerospace Capabilities Growth of Enterprise 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 Year-end Message from the Acting Group CEO 3 A Dozen Achievements – Top 12 Highlights of 2015 4 Accolades Keep Rolling in for Denel 4 Strong Support for Denel Demonstrated in Parliament 4 Young Engineers Conquer the Systems at Annual Challenge 05 5 New Contracts to Boost Denel’s Armoured Vehicle Business 6 Dubai Airshow an Opportunity to Market our Aerospace Capabilities 7 Strong Support for Growth of Ekurhuleni Aerotropolis in Gauteng 8 Iconic Denel Products Offer Backdrop for Paintball Warriors 9 Denel Support Enables Rapid Growth for Thuthuka 10 Denel Participates at SA Innovation Summit 09 10 Clever Robot Detects Landmines to Save Lives 11 Denel Products on Show in London 12 Milestone Agreement with UN Benefits Mechem Business 13 Training Links with Cameroon Grow Stronger 14 Empowering a Girl Child to Fly High 14 DTA Opens Doors to Training Opportunities 15 Denel Vehicle Systems Inspires Youthful Audience 12 15 High praise for Mechem team in Mogadishu 16 Preserving Denel’s Living Heritage 18 Celebrating Pioneering Women in Words and Pictures 20 Out and About in Society 16 Editor’s Note We would like to hear from you! Denel Insights has been created as an external communication platform to keep you – our stakeholders – informed about the projects and developments within our Group. We would love to hear your comments and suggestions about stories that you would like us to update you on. Please email your letter to the editor to [email protected], and include your name and contact details. We look forward to hearing from you. 18 Pamela Malinda Third Issue 2015 1 “The members expressed their appreciation towards Denel and thanked our employees for the contribution they are making to the company’s success.” Vuyelwa Qinga Editor-in-Chief enel’s value to South Africa stretches way beyond its ability Enjoy this edition of Denel Insights and, please, continue to give us to provide the country’s defence and security forces with the your feedback. Dproducts and systems they require to defend our borders and protect our citizens. Vuyelwa Qinga Group Head: Corporate Communication & Public Affairs In recent years, Denel has increasingly grown into a high- technology company, a reservoir of skills, innovation and advanced capabilities. An overview of the dozen top achievements of the past year will give readers an insight into the range of our business and the value that we add to industry and society. This issue of Denel Insights, however, also celebrates the quality The Denel of the people working for Denel in addition to our products and systems. We introduce you to the inspiring women who have Management team, succeeded in building careers in an industry that has long been male-dominated. A status that is about to change through our bold appreciates the transformation plans. contribution you have We tell you about the achievements of a new generation of young engineers and artisans who are rising through the company’s made to our success ranks, innovators, problem-solvers and role models for other young people to access more opportunities through education. this year. We extend These qualities inherent to Denel are increasingly being recognised out best wishes to by our clients and stakeholders. At our most recent meeting with the Portfolio Committee on Public Enterprises, Members your family over of Parliament were highly complementary of the company’s performance and successful turnaround. the festive season As we close the year, I wish you joy and peace during this festive and wish you a season and a prosperous 2016. prosperous New Year. 2 Denel – Insights “2015 was a defining year for Denel in many respects. From a business perspective we have enjoyed one of our most successful 12 month periods yet. Zwelakhe Ntshepe Year-end Message A Dozen Achievements – from the Acting Top 12 Highlights of 2015: • Establishment of Denel Integrated Systems and Maritime Group CEO – extending the company’s reach into command and control, cyber security and the maritime environments; • Acquisition of Denel Vehicle Systems – formerly BAE Systems LSSA – strengthening the group’s leadership in 2015 was a defining year for Denel in many respects. From a business landward defence; perspective we have enjoyed one of our most successful 12 month periods yet. Revenue grew by 28% and our net profit increased to • Increasing DAe’s production rates on the manufacturing R270-million. of key components for the A400M; • Launching the Small African Regional Aircraft – SARA – At governance level we welcomed the appointment of a new Board to project in collaboration with local industry and the research provide strategic direction to the company during its tenure. community. As 2015 comes to an end, this gives us an opportunity to thank our • Developing a modern version of the iconic G6-52 artillery many stakeholders and partners within the broader defence sector system by Denel Land Systems; for your continuing support to Denel. Our relationships are built on • Introducing a plant renewal programme at Denel PMP trust and a track record of delivery that has grown stronger through the years. • Successfully completing the development of the A-Darter 5th generation air-to-air missile by Denel Dynamics; The future prospects for Denel look exceptionally bright. We have • Completing the performance flight testing of the Seeker a strong order book that provides us with a six-fold cover on 400 unmanned aerial vehicle system; annual revenue. Our sales and marketing teams are pursuing new opportunities that will soon be confirmed into business. Morale in • Expanding Mechem’s camp management services to the company remains high and we have maintained the spirit of international agencies and successfully completing various innovation that has always been the hallmark of Denel for many demining projects in Africa; years. • Providing telemetry support to the European Space Agency and hosting an international defence day at the We trust that you will continue to support Denel and its activities as Denel Overberg Test Range; we prepare to enter a new phase in our company’s history. • Fully integrating the commercial satellite programme into May the Festive Season be joyful to you and your family. Spaceteq; • Making good progress on the future roadmap for the Zwelakhe Ntshepe Rooivalk combat support helicopter. Acting Group CEO Third Issue 2015 3 Young Engineers Conquer Accolades Keep the Systems at Annual Rolling in for Denel Challenge enel has joined the ranks of the “Top 500 Best-managed he skills and talents of Denel employees were recently on Companies” in South Africa in a recently released display when teams from three divisions participated in the Dpublication. TGreatest Young Systems Engineer of the Year challenge. The annual survey is published by the leading business The team from Denel Dynamics – Yoshlyn Naidoo, Elsabé Ebersohn, publication, Top Companies Media. A panel of judges evaluate Purusha Naidoo and Jeff Joseph – emerged as the winners of the both private sector and state-owned companies in the country competition held over a two month period. according to strict selection criteria including, turnover, growth and expenditure on corporate social investment. Purusha Naidoo was also named as the “Greatest Young Systems Engineer of 2015” by the team of evaluators. This big accolade for Denel, it comes close on the heels of it being named among the Top 100 Global Defence Companies in The competition is organised by INCOSE SA Youth Outreach the annual ranking by international publication Defense News. programme and the intention is to establish a proficiency in – and a love for – systems engineering. The participants are all engineers with fewer than three years of working experience. Teams were given a business problem statement and then required to take this from the initial stages through to the exploratory Strong Support for Denel research and concept stages. One of the reasons why the team from Denel Dynamics came out Demonstrated in Parliament on top was that they generated an implementations-free solution leaving the specialist engineer in the field with the options to enel’s recent presentation to Parliament on its annual determine the best solution to fit the specifications of the system. financial statements drew compliments from Members Dacross the political spectrum. Two other teams from Denel also participated in the inaugural event. Denel Land Systems was represented by Cameron Pillay, The presentation, made to the Portfolio Committee on Public Gundo Phathela, Pooven Pillay and Sergio Pillay as well as another Enterprises, focused on Denel’s successful turnaround and the team consisting of Butana Mabunda, Marius Veldhuyzen van Zanten, expectations that it will continue on its current growth path. Tebogo Bopape and Vidhya Vallatt. The Members of the Board and executives who met with The teams made Denel proud and showed that the company has a parliamentarians said the future of the company is positive with an rich core of capable, aspiring system thinkers in its ranks. order book of more than R30-billion – triple the value of secured orders a few years ago and a six-fold annual revenue cover. Denel is also pursuing a number of significant opportunities in the global markets. There is confidence that more than half of these opportunities will be concluded in the short-to medium- term.