Introducing the Industrial Development CorporationIntroducing the Industrial Development Corporation

(IDC)(IDC)

Presentation by:Presentation by:

Raisibe MorathiChief Investment Officer

Industrial Development Corporation of South Africa

Introducing the IDCJohannesburg 09 June 2004

Corporate profile…

Established in 1940, the IDC is a self-financing, state-owned development finance institution

Provides financing to entrepreneurs engaged in competitive industries

Follows normal company policy and procedures in its operations

Pays income tax at corporate rates and dividends to the shareholder

Independent Board of Directors

Reports on a fully consolidated basis, with its Annual Report freely available to the public

14 Strategic Business Units (SBUs), each focussed on specific economic sectors

COOCOOGert GouwsGert Gouws

ProjectProjectssDivisioDivisionn

Jaco Kriek

IndustriIndustrial al Sectors Sectors DivisionDivision

Ufikile Khumalo

ServiceServices s Sectors Sectors DivisionDivision

Gerrit van Wyk

CEO / CEO / PresidentPresident

Khaya Ngqula

IDC’s Operational Structure…

23 Supporting departments

ProfessionaProfessional Servicesl Services

Trevor Mashabane

HR HR DivisionDivision

Lesé Matlhape

Marketing Marketing & & Corporate Corporate AffairsAffairsDivisionDivisionNeo Sowazi

Legal Legal Services Services & & General General Counsel Counsel DivisionDivisionTony Tshivhase

CIOCIORaisibe Morathi

CFOCFOGeoffrey Qhena

IDC Objectives

Create employment opportunitiesImprove the real standards of living of all South Africans:– Poor provinces– Rural areas

Foster entrepreneurshipSmall and medium enterprisesEconomic empowerment of the historically disadvantaged, including broad basedDevelopment of industrial capacity in Africa

IDC financing trend (1940s - 2000s)…Total Value of financing approvals

0

15

30

45

60

75

90

1940s 1950s 1960s 1970s 1980s 1990s *2000s1

2

3

4

5

6

7Rand billion at 2002 prices

As a % of Gross Fixed Capital Formation (GFCF) in SA

83.5

16.7

% of GFCFRand billion

low economic activity

IDC financing to reach over R80 billion in 2000-2010

Projected IDC Financing

Investing in the Economy…Financial year 2002/2003…

IDC’s investment approvals amounted to R 6.2 billion involving 345 dealsIDC’s investments as percentage of private sector investment activity amounted to 4.7% of GFCF

IDC Total approvals July 98 to June 2003

0

1000

2000

3000

4000

5000

6000

7000

98/99 99/00 00/01 01/02 02/03Financial Year

R m

illio

n

0

100

200

300

400

500

600

700Total Value (R'm)Total Number

Num

ber

IDC awarded an investment grade rating of Baa2 from Moody’s Investor’s Service