Report back to -

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Report back to - Trade and Industry Portfolio
Committee
Presented by Gert Gouws Chief Financial
Officer Industrial Development Corporation of
South Africa Ltd
2
Contents

• Vision, Mission and Core Strategies
• Organisational Structure
• Key Focus Areas
• Annual Highlights and Performance
• Financial Aspects
• Prospects for the Future

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Vision ...
To be the primary driving force of commercially
sustainable industrial development and innovation
to the benefit of South and southern Africa
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Mission ...

• Contribute to the generation of balanced,
  sustainable economic growth in southern Africa
• Economically empower the southern African
  population
• Promote entrepreneurship through the building of
  competitive industries and enterprises based on
  sound business principles

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Core Strategies ...
4
Providing risk capital to widest range of
industrial projects

• Maintaining its financial independence
• internal profitability
• divestments from mature assets
• borrowings

Identifying and supporting opportunities not yet
addressed by the market
Establishing local and global involvement
partnerships in projects that are rooted in or
benefit SA and SADC
Building upon and investing in human capital in
ways that systematically and increasingly reflect
the diversity of SAs society
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IDCs Operational Structure ...
7
IDCs Focus Areas ...

• Empowering of emerging entrepreneurs
• Support manufacturing, tourism development,
  agro-industries and small-scale mining
• New initiatives
• Development funding
• Public private partnerships
• Energy sectors

• Continue with the establishment of
  internationally competitive, large,
  resource-based beneficiation projects and
  downstream value-added industries
• Regional (African) development

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The IDC as a Regional Player
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Highlights for 2001

• 515 approvals with a total value of R9,3 billion
  (265 and R3,6 billion for July to December)
• Strengthening of IDCs Treasury function through
  the appointment of a Corporate Treasurer
• Conclusion of an agreement on the restructuring
  of ISCOR and the sale of Saldanha Steel to ISCOR
• IDCs portfolio outside South Africa increased to
  47 projects in 16 countries from 30 in 9
  countries at the beginning of the period
• Establishment of a Development Funding Department
  with a 59 million Risk Capital Facility from the
  EU
• Finalisation of the IDC mandate and IDC Act
  amendments
• Significant progress with the implementation of a
  new IT system to support the growth of IDC
  business

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Performance Approvals by SBU
Net after cancellations
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Performance Development Impact

• Investment facilitated during 2001
• Assisted in the creation of 20 000 new job
  opportunities (11 000 for July to December)
• Generated R10,5 billion of additional export
  earnings (R2,5 billion for July to December)
• Finance to empowerment companies represented 33
  of the total number of approvals

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Performance Empowerment Financing
Credit facilities for delivery on
government contracts
Warehousing of shares
Wholesale finance
Take-overs and acquisitions
Loan finance
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Performance SME Financing
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Performance Regional Development

• 47 projects in 16 countries
• plus...
• 19 export finance
• applications approved or
• under consideration
• equals ...
• Almost R7.6 billion in African approvals since
  1998

• Nigeria
• Telecoms

• Uganda
• Hydropower

• DRC
• Copper Cobalt

• Togo
• Spices

• Kenya
• Railway

• Tanzania
• Tanzanite
• Bags
• Pharmaceuticals
• Sisal
• Moringa
• Health resort

• Ghana
• Bauxite and Alumina
• Shopping mall
• Soft drinks

• Malawi
• Tea
• Hotel
• Shopping mall
• Electricity

• Angola
• Hotel (x2)
• Port expansion
• Dry docks

• Zambia
• Copper (x2)
• Horti and floriculture
• Hotel
• Timber
• Roses
• Telecomms
• Mining equipment
• Clothing

• Madagascar
• Prawns

• Mauritius
• Sugar and power
• Tourism resort

• Mozambique
• Aluminium (x2)
• Titanium
• Cotton
• Sesame
• Sugar
• Hotel
• Brewery
• Timber
• Pallets
• Prawns

• Namibia
• Table grapes
• Tantalite
• Sepiolite
• Bags
• Diamonds

• Swaziland
• Wattle
• Distillery
• Leather tanning
• Roses
• Frozen foods
• Telecoms

• Botswana
• GSM pay phones
• Hydroponic farming
• Fencing
• Parkade

• Zimbabwe
• Platinum

• Lesotho
• Diamonds (x2)

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Abridged Consolidated Income Statementsfor the 6
months Ended 31 December (Rmil)
Six months to December
Year 2001
Change
2001
2000
1 723 545 2 576 3 121 (384) (2
583) 154 110 44
3 59 566 328 19
? ? ? ? ?
1 771 343 387 730 (322) - 408 47 361
3 679 787 1 772 2 559 (838) (1
900) (179) 79 (258)
Revenue Net operating income Net capital
gains Income before equity accounted
investments
Equity accounted investments - Losses from
ordinary operations - Exceptional impairment
losses Net income/(loss) from operations
Taxation Net attributable income/(loss)
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Abridged Consolidated Balance Sheets as at 31
December (Rmil)
30 June 2001
Change
2001
2000
47 30 14 42 30 32 29 8 30
1 680 28 144 1 621 1 795 33 240 24 390 7 371 1
479 33 240 30
? ? ? ? ? ? ? ? ?
1 740 23 382 1 422 1 421 27 965 20 896 5 713 1
356 27 965 27
1 139 21 715 1 426 1 267 25 547 18 470 5 713 1
364 25 547 31
Assets Cash and cash equivalents Loans, advances
and investments Fixed assets Other assets Equity
and Liabilities Capital and reserves Long term
loans Other liabilities Debt/Equity ratio
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Analysis of Income/Loss
18
Strengthened Financial Base
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Prospects

• SMEs role in the economy expected to increase
• Regional development focus
• Public Private Partnership Business Unit
  facilitation of infrastructural development