company restricted | not export controlled | not … · 2017-10-09 · saab grintek defence has won...



SAAB GRINTEK DEFENCE: A PLACE IN OUR HISTORY

2

1937

Saab

founded

1990

Saab Automobile

independent company

2000

Celsius

acquired

2005

Grintek

acquired

2006

Ericsson Microwave

Systems acquired

2011

Sensis Corp.

acquired

2012

HITT

acquired

2014

Saab Kockums

acquired

1646

Bofors

founded

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AN OVERVIEW OF SAAB GRINTEK DEFENCE

3

770

EMPLOYEES

2016 - SALES

1300

MZAR

Order Intake 2Bn ZAR

Geographic sales distribution

> 30 CUSTOMERS COUNTRIES

70

19

11

Air

Land

Naval



SGD INFRASTRUCTURE

4

Cape Town

Centurion

South Africa

Pretoria

• Employees: 770

• Facilities:

• Centurion

‒ EW

‒ LSI

‒ ISS

‒ C2TS

‒ D&D

‒ Supply Chain &Production

• Cape Town

‒ Naval EW

‒ SSC Naval

‒ Production

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SAAB GRINTEK DEFENCE

• Products distributed to 30 countries

• Export represents about 80% of the company’s total turnover

• Local team researching, developing, producing, exporting, maintaining and upgrading world-standard products and technologies

• The first to offer a fully integrated self-protection suite

• We export to developed and developing countries - flexible to fit all environments

• Won best SA export company 2013, 2014 and 2016

• Level 2 BBBEE Contributor, 25% Black ownership

5



WE SUPPLY AND SUPPORT ALL DOMAINS

6

Land Sea Civil Security Air



C2&TS

Command

and Control,

Training and

Simulation

PRODUCT AREAS WITHIN SGD

LSI

Lead Systems

Integration

Electronic

Warfare/ESM

- Air

- Land

- Naval

AVIONICS

Acquisition and

Communications

Systems

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SAAB GRINTEK DEFENCE SUPPLIER OF WORLD LEADING PRODUCTS AND SERVICES

EW Avionics

Systems C2 & TS

ATM Security

Solutions

Support

Solutions

Mainly Export Market Local/Regional Market – SA and SSA

C2

Lead Systems Integration



ELECTRONIC WARFARE

• Saab and SGD have a long history in Electronic Warfare

• SGD specializes in self-protection and ESM/ELINT systems

• Self-protection products

‒ Integrated Defensive Aids Suite (IDAS)

‒ Civilian Aircraft Missile Protection System (CAMPS)

‒ Land Electronic Defensive System (LEDS)

‒ Naval Laser Warner (NLW)

• ESM/ELINT products

‒ U/SME (submarine and surface ships)

‒ Electronic Surveillance Payload (ESP)

• Centre of Excellence for the Design and Manufacture of Antennas, RF and Microwave components for Saab worldwide

• All products are developed and produced in South Africa

9



AVIONICS - ACQUISITION AND COMMUNICATION SYSTEMS

• Solutions

‒ Communication management systems configurable via

software and modular hardware (Civil certified)

‒ Mission recorder, data transfer and mass storage products

supported by ground evaluation systems

‒ Data concentrators, monitoring modules and data

acquisition units with capability of implementing health and

usage algorithms in ground support software

• Products are developed and produced in South Africa

• Deployed on fixed and rotary-wing platforms worldwide

‒ Installed base

‒ CMS ~ 100 platforms

‒ Recorders ~400

‒ Monitoring ~600

10



SGD LEAD SYSTEMS INTEGRATION

• Integrated Logistic Support / System Engineering Support

• Field Facilities

• Maintenance Repair and Overhaul (MRO)

• Vehicle Electronics – Including Vehicle Modification/Integration (eg FCC - Fire Control Computer)

• Air Traffic Management (ATM), Maritime Traffic Management (MTM), Command, Navigation, Surveillance(CNS)

• Civil Security – Communications and System Solutions

• Chemical, Biological, Radiological and Nuclear (CBRN)

• Signature Management

11

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COMMAND & CONTROL (C2) AND TRAINING SYSTEMS

• Surveillance Command and Air Defence

‒ Air Picture Display System

‒ Ground Command and Control System

‒ Intelligent Database Support System

‒ Web Based Monitoring Control and Systems for Airports

• Designed to Fit Command and Control Solutions for Landward, Naval, Joint and

Security Sectors

‒ Situational Awareness

‒ Planning & Orders Management

‒ Mission Execution Support

‒ Integrated GIS

• Design to Fit Simulation Solutions for all Training Requirements

‒ Expertise and Field Support for Live, Virtual and Constructive Simulation

‒ World Class affordable Constructive Simulation

12



THE SAAB GRINTEK DEFENCE EXPORT STORY

Saab Grintek Defence has won the DTI Exporter of the Year award in

2013/2014/2016

How did they do it?

“By supplying Innovative and cost-effective products and services into the

global market”

13



HOW DOES SGD INNOVATE?

• Invest 10% of revenues into self-funded R&D

• Further supplemented by customer funded development

• SGD’s Intrepid Programme

‒ In-house Innovation Programme that encourages

engineers to propose ideas for Innovative Products

‒ Awards engineers “free-time” to develop and test

their ideas/concepts until they can be formally

handed over to R&D for further development

14



HOW DOES SGD INNOVATE? (CONT)

• Make use of the DTI tax rebate programme for R&D

‒ can claim 1.5x cost of R&D as a cost

‒ 50% tax savings on R&D cost

• Make use of the DTI Manufacturing Competitiveness Enhancement Programme (MCEP)

‒ Non-taxable grant calculated as a percentage of

Manufacturing Value Add (MVA)

‒ Sliding scale of 10%-25% of MVA

15



HOW DO WE LEVERAGE OUR SUPPLY CHAIN INTO GLOBAL MARKETS?

• Channels – B2B (OEMs) and B2G (Defence Acquisition)

• Strong Alliances with OEM (platform) suppliers and System Integrators

• Strong relationships with OEM’s and end-customers (ask for our product)

• Use of our Global brand (Saab) to form Strategic alliances with global players (e.g. HAL, BAe, Leonardo…)

• Product focus rather than project focus

• Quality products on time and at the right price

• Comply with in-country Offset requirements

16



SGD’S COMPETITIVE ADVANTAGE

• High performance products at competitive prices

• Quality, efficiency and continuous improvement programmes

• Highly skilled work force

• Large installed base with multiple generations of fielded systems

17




• Meet Global Quality Standards

‒ ISO9001

‒ Part 145 Approved Maintenance Organization by the European Aviation Safety Agency (EASA)

‒ Quality Management System, easily integrated into customer organization

• Integrated Supply Chain

‒ Qualified and approved supplier base

‒ >30% outsourcing to BBBEE SMME’s

‒ ESD Programme (15 suppliers in on-site incubator programme)

• Leverage weak currency (ZAR)

18




• Meet Global Quality Standards

‒ ISO9001

‒ Part 145 Approved Maintenance Organization by the European Aviation Safety Agency (EASA)

‒ Quality Management System, easily integrated into customer organization

• High performance products at competitive prices

• Quality, efficiency and continuous improvement programmes

• Highly skilled work force

• Large installed base with multiple generations of fielded systems

• Leverage weak currency (ZAR)

19



CUSTOMER FOCUSSED ORGANISATION

• World class products in niche areas

• On time delivery at the correct quality standards

• Continuous improvement programmes to improve quality and organisational efficiency

• Global Marketing and Sales and Business Development Organisation

• Establish Reference Platforms and Build Track Record

• Meet Offset Requirements specific to country

‒ Maintenance and Production Transfer of Technology whilst safeguarding Intellectual Property

‒ Other non-project specific Offset

20



CHALLENGES

• Export control turn-around time

• Insufficient incentives for exporters

• Ownership Issue in BBBEE Scorecard

‒ MNC’s are reluctant to relinquish majority shareholding

‒ board veto rights

‒ loss of control over IP

• Need to improve co-operation with government, private sector and institutions (triple helix)

• NIP and DIP

‒ Qualifying Projects and Beneficiaries

21



OPPORTUNITIES

• Partnerships between Industry, Institutions and Governments to Industrialize Intellectual Property and create marketable products

• G2G business facilitated by SA Government Departments

• South Africa is non-aligned - ability to export where other countries may not be able to

• Target largely untapped markets in Africa, South America, India, Middle East

22



CONCLUSION

• Opportunities exist for South African companies beyond local markets

• Innovation is a key factor for success

• Products and/or services must meet global quality standards and be the best in class

• Customer relationships must be created and maintained

• SMME’s must create value-adding partnerships to launch their products and services into the global market

23

company restricted | not export controlled | not … · 2017-10-09 · saab grintek defence has won...

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