presentation to portfolio committee on agriculture, forestry & fisheries embracing change 14...

Presentation to Portfolio Presentation to Portfolio Committee on Agriculture, Forestry Committee on Agriculture, Forestry

& Fisheries& Fisheries

Embracing ChangeEmbracing Change

14 June 201114 June 2011

Introducing the Oceana Group Limited (OGL) Oceana Group...

1. ...is the leading and only JSE-listed fishing company in South Africa.2. ...is an empowered Level 3 BEE contributor that supports the government’s growth and transformation objectives. 3....is a responsible and involved corporate citizen that operates in strict accordance with the laws of the country and embraces sustainable business practices.4....is a great company to work for with fair and equitable employment policies and a commitment to improving the well- being of its employees

OGL has been verified as a black-owned level 3 BBBEE contributorOGL has been verified as a black-owned level 3 BBBEE contributor


BROAD-BASED NARROW-BASED

1. Measures underlying economic interest of black ownership

Measures percentage black ownership only not actual economic benefits; benefits only a few with access to capital – elitist

2. Eliminates fronting through clear definitions, principles and processes to define measurement

High level of fronting – no clear implementation guidelines/ measures

3. Broad-based empowerment encouraged through procurement , enterprise development and CSI , which, if channelled correctly, will have an increasingly positive impact on the welfare of fishing communities

No broad-based benefits for emerging businesses or fishing communities

4. Supports the New Growth Path initiative and government job creation targets

Does not support government policy

Key Challenge: Agreeing on a uniform measurement of Transformation

Broad-based:1.Ownership 2.Management & Control3.Employment Equity4.Skills Development5.Preferential Procurement6.Enterprise Development7.Socio-Economic Development


“... the Council (Government BBBEE Advisory Council) called for the CONSISTENTCONSISTENT implementation of

broad-based BEE in ALL SECTORS ALL SECTORS of the economy, to ensure that the

policy touches the lives of more people," SA Presidency 1 April 2011


Narrow-based:1.Ownership2.Management & Control

“To define BEE too narrowly limits it to a set of

transactions TRANSFERRING TRANSFERRING CORPORATE ASSETS FROM CORPORATE ASSETS FROM

WHITE TO BLACK WHITE TO BLACK ownership” – Dept. of Trade and Industry’s

BEE Strategy doc.



Current Status of Transformation of the Fishing IndustryStatus currently known by DAFF Resolve Group appointed to conduct a detailed Performance Review across all sectors of the industry in 2010 All rights holders had to submit a completed electronic Request for Information (“RFI”) questionnaire by 30 April ’10 Results not released yet


Transformation in Oceana Group in 2005

At the end of 2005, long-term fishing rights were allocated for varying periods of between 8 and 15 years...


There may have been an expectation that with our rights in place, we would simply have maintained our transformation status and done nothing more...

Transformation in Oceana Group after allocation of long-term fishing rights


Instead, we’ve accelerated transformation

since long-term rights were allocated.


Transformation in Oceana Group after allocation of long-term fishing rights

How has Oceana Transformed?

Black Ownership - %

1995 2005 Current

25,1% 19,6% 50,5%*


OCEANA GROUP IS NOW A OCEANA GROUP IS NOW A BLACK-OWNED COMPANYBLACK-OWNED COMPANY

*Independently verified by Empowerdex


Profile of Major Shareholders


OGL Shareholder No of shares held % of total shareholding

No of individual black beneficiaries

Khula Trust 14,162,799 11,9% 2,003

Brimstone 11,596,755 9,7% 8,500,181

Tiger Brands 44,699,463 37,5% 10,951

Other 48,690,540 40,9% n/a

Totals 119,149,557 100,0% 8,513,135


Black Management & Control - % (Board of Directors)

1995 2005 2010

12,5% 40,0% 45,0%

% Black Females

0,0% 0,0% 18,0%*


*Currently, 27,3%


Employment Equity - % (black representation)

2005 2010

Senior Management 10,0% 26,0%Middle Management 38,0% 50,0%Junior Management 75,0% 82,0%



Skills Development Spend

2006 2010 5yr Cumulative

Rand value: all staff R4,1m R7,8m R26,3mRand value: black staff R3,6m R6,4m R22,0m% of training spend: 87,8% 82,1% 83,7%black staff



Procurement spend on BEE companies


Rand value R536,1m R827,2m R3,1b% Spend 65,81% 70,3% 62%



Enterprise Development Spend


Rand value R79,4m R27,3m R207,6mJoint ventures 22 25 n/a

Supply agreements 103 72 n/a



CSI Spend

2006 2010 5 yr Cumulative

Total CSI R3,3m R2,4m R13,4m(SA only)


Further Empowerment Initiatives An important provider of food security in South Africa and Africa (protein footprint)

535,000 cans of canned fish consumed every day of the year, which

equates to an estimated 1,9 million servings per day in SA; An estimated 1,4 million servings of horse mackerel per day in Africa Main target market is consumers in the lower Living Standards Measure (LSM) bracket


An important provider of food security in SA(protein footprint) Employee Share Scheme

Khula Trust, formed in 2006, owns 14,2m shares in the Oceana Group equating to 11,9% of the shareholding At current share price, the Accrued Capital Value to employees net of

debt equals R343m Total current employee beneficiaries is 2,003 Average accrued capital value per employee equals R171,000


Further Empowerment Initiatives

An important provider of food security in SA (protein footprint) Employee Share Scheme Provision of housing to employees at a cost of R6m

Lamberts Bay 30 houses

Hout Bay 58 cottages and 24 flats

St Helena Bay / Laingville 45 plots 50 houses



Food safety (protein footprint) Employee Share Scheme Provision of housing Investment made in respect of “South Africanisation” of Russian vessel, the Desert Diamond

R3,372,924 for training and development SA crew increased from 32% in 2003 to 66% in 2011.



Transformation of the Oceana Group

BBBEE Scorecard Maximum Score

Actual Score

Ownership 20,00 20,00

Management & Control 10,00 6,55

Employment Equity 15,00 8,06

Skills Development 15,00 10,14

Preferential Procurement 20,00 18,56

Enterprise Development 15,00 15,00

Socio-economic Development

5,00 5,00

TOTAL 100,00 83,31


Oceana Group is now ...a black-owned Level 3 BBBEE Contributor

The Way ForwardWe would respectfully ask of DAFF, as a precursor to the development of a fishing charter and the setting of any future industry-specific transformation goals, that it:

1.Adopts the BBBEE Codes of Good Practice in ALL policies DAFF’s current approach to assessing transformation -

Is narrow and only measures the percentage black ownership and management and fails to recognise broad-based transformation initiatives

Pre-dates the 2007 change in legislation on B-BBEE Is contrary to government’s stated strategy, including the New Growth Path

2. Publishes the results of the Performance Review process specific to the CURRENT LEVEL OF BBBEE TRANSFORMATION within the fishing industry


Thank You!Thank You!

presentation to portfolio committee on agriculture, forestry & fisheries embracing change 14...

Documents

blackowned level

bbbee contributor ogl

measurementhigh level

empowered level

bbbee contributorkey

transformation status

employees ogl

oceana group afte