the south african breweries limited

1. The South African Breweries Limited

3. The HRD team is the custodian of world-class development of the Human Capital of the organisation, thereby contributing directly to business results and shareholder value.

4. To employ a disproportionate share of top calibre people who will enhance our high performance engaging and diverse culture, which, in turn, will allow the company to achieve spectacular business results.

5. Current Reality Global Trends International talent mobility - opportunities Shrinking labour force in developed countries – talent retained International Technical skills crisis – increasing skills gap in SA Scarcity of skills – competition / “brain drain” Companies are “fishing in the same pool” Economic growth Unemployment levels – ASGISA Project Artisan demand / supply Decline in Apprentice numbers

6. Employment Outlook 1.2m jobs created over past 2 ½ years. ASGISA – objective to half unemployment by 2014. 5m net new jobs to reach target. 500,000 jobs p.a. Average 4.3% as opposed to 3.5% over the past few years. Severe unemployment will probably persist? Problem too big for market forces to eradicate. No option but to upgrade the skills of graduates and workers.

7. Supply of Skills in SA 8 million unemployed people in SA - shortage of 500 000 people in managerial and technical positions 8% of working population – post matric qualifications - unemployment rate 5% 46% unemployment rate – people with Grade 11 Required educational levels of recruits - 58% of companies indicated NQF 5 Confirmed by scarce skills research - 50% + of people required in occupations where the entry level is NQF 5 and above

8. Decrease in Apprenticeships Only 1 500 artisans on apprenticeship training (2007) According to a study conducted by Mike Macrae of Sasol Synfuels: + 33 000 in 1975 + 7 500 in 1990 + 3 000 in 2000 1 440 in 2005 The average age of artisans in South Africa is 53 years

9. Demand - Artisan Nationally between 12 500 and 15 000 annually (ESKOM alone 12 000) FoodBev Sector alone 1 900 by 2010 (sample size of 40%) Supply? (current 1 500?) International “brain drain”

10. Burning Platform - SAB SAB Ltd artisan turnover high Technical Depth Time to recruit within SAB Ltd National focus on skills – significant reduction in apprentice numbers Economic growth

11. Future Reality Re-introduction of Apprentice programme 60m budget over 3 years May 2007 - 76 registrations (30 % internal appointments) Current = 121 in system (45 first years) Introduction of the Artisan Development Programme 7m budgeted over 3 years Participation in FoodBev SETA initiatives Apprenticeships: Section 13 & Section 28 Scarce skills development Customised programme – curriculum linked to business results Outsourced learning solutions Facilitators up-skilled to deliver revised curriculum

14. Example - Instrument Programme

15. Career Opportunities?

16. Critical to success Business partnering / Supplier partnering Recruitment – right calibre of people Programme - aligned to business strategy Skills set relevant to plant Work-based learning – transfer and application of skills and knowledge Facilitators’ functional expertise – current Monitoring and QA

17. Benefits Technology investments in Manufacturing leveraged Shortened time to competence Increased technical depth Pipeline development – matched skill set

18. Challenges Planning and scheduling of training Administration – Central Recruitment – right calibre of people Benchmark centre for Skills development Accreditation – Trade Test centre

19. SAB Ltd is … Committed to skills development Demonstrates best practice that often goes beyond compliance A committed, loyal and proudly South African global company who truly lives the value that our people are our most enduring advantage