DENEL GROUP

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DENEL AVIATION

EMERGING TRENDS IN MAINTENANCE TRAINING

P Mbulayeni

DENEL GROUP

2 Company Confidential

DENEL AVIATION

05 October 2015

TABLE OF CONTENT

Business Overview

External Fundamentals

Situational Analysis

Key Factors

Emerging Trends

It’s Time To Act

DENEL GROUP

3 Company Confidential

DENEL AVIATION

05 October 2015

COMPANY OVERVIEW

Strategic Relevance

Denel Aviation is a significant player in the aerospace and defence industry and strategic national

asset and needs to continuously reinvent and adapt to current and emerging trends in the market

place

Core Products

Primarily a military MRO, upgrades and systems integration organisation delivering

complete aviation solutions, with innovation, quality and value-added services, through

worldwide partnerships.

• Rooivalk OEM, Oryx and Cheetah Design Authority.

• Aircraft and Component MRO (Rotary and Fixed Wing).

• Combat aircraft programmes.

• Training on Aviation Technical and General Engineering Trades.

• System Integration, Upgrades and Retrofits.

• Repair and Calibration of Ground Support and Test Equipment.

• Supply of deployable skilled technical manpower to customer bases.

• Staff compliment of 732 (inclusive of DAv apprenticeships).

DENEL GROUP

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DENEL AVIATION

05 October 2015

COMPANY OVERVIEW

CEO

CFO / Deputy CEO

General Manager:

DTA

Aircraft Electronic /

Electrical Head of

Department

Engineering

Head of Department

Aircraft Mechanical

Head of Department

Manager: Head of

Quality & SHE

Aircraft Electronic /

Electrical Instructor

Engineering

Instructor

Aircraft Mechanical

Instructor

Engineering

Assistant Instructor

Aircraft Mechanical

Assistant Instructor

DENEL GROUP

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DENEL CENTRE FOR LEARNING & DEVELOPMENT

(DCLD)

ATLAS AIRCRAFT

CORPORATION

DENEL TECHNICAL ACADEMY

Training was established under

the auspices of Atlas Aircraft Corporation

Initially training of Apprentices was done only for DENEL

Entities

DENEL CENTRE FOR LEARNING &

DEVELOPMENT was

established to render a centralised training function for the Denel

Group

August 2010, after restructuring,

The DENEL TECHNICAL ACADEMY was formed to

focus on Apprentice and Type and Advanced Training.

COMPANY OVERVIEW Historical Perspective

DENEL GROUP

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DENEL AVIATION

05 October 2015

External Fundamentals

Shareholder compact to

increase technical training to

meet government objectives

Continental Obligations: providing

affordable training that is to appropriate

standard.

DENEL GROUP

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DENEL AVIATION

05 October 2015

External Fundamentals

DTI Industrial Policy Action Plan (IPAP) focuses on transport, automotive manufacturing, components and metal industries. The target is 5m jobs in the manufacturing sector by 2020

National Skills Accord - Targeting companies to invest 3 to 5% of payroll/employment cost for training

NGP - Targeting 50 000 new artisans by 2015

MERSETA - targeting 20 000 artisans from 2012 to 2016. A demand for fitters, turners, toolmakers, precision instrument makers, metal machinists, millwrights, electricians and plant/machine operators has been identified. . It is estimated that 165 620 new positions will be required by 2018

DENEL GROUP

8 Company Confidential

DENEL AVIATION

05 October 2015

SITUATIONAL ANALYSIS

• Aviation market demand cannot absorb the number of artisans that are being produced

• Once qualified, apprentices struggle to find employment.

• Challenges in placing students for on the-job training (OJT) to enable them to qualify

• At the same time, various smaller and medium sized Aviation training facilities have

emerged.

• Technological Advancements in Aviation are rapid compared to other industries

• Compared to the Aviation trades the demand in the Engineering trades are higher

(Fitters, Toolmakers, Fitters and Turners, Precision Instrument Makers, Millwrights, CNC

Machining, CAD to CAM manufacturing, Automated production equipment, Welders,

Boilermakers, Motor mechanics ).

DENEL GROUP

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DENEL AVIATION

05 October 2015

Key Factors

Operational Legislative Safety

nAgeing fleet n Number of accreditations n Student culture

n

Single Resource

Dependancies and Skills

Transfer

n Foreign approvals n Curriculum

nLanguage, cultural barriers n Lack of standardisation n OJT servicing aircraft safety

nTeaching aids and training

methodologiesn Human Factors

nFunding

DENEL GROUP

10 Company Confidential

DENEL AVIATION

05 October 2015

EMERGING TRENDS

Operational

• Succession Planning

• Integrated Systems training (ensuring balance)

• Paperless classrooms

• Advanced technological training (e.g. for RPAS)

• Curriculum

• Investment in training infrastructure

Safety

• ISO 18001 Certification

• SMS Implementation

• Curriculum that involves safety practices

DENEL GROUP

11 Company Confidential

DENEL AVIATION

05 October 2015

It’s Time To Act

DENEL GROUP

12

THANK YOU