Management of Denel responded to the issues raised by the Committee, as follows: 7.1 Denel had improved revenue generation for all the other business units with the exception of DSA. 7.2 The airbus A400M project was the main project for DSA as the entity was responsible for the manufacturing and design of the whole product. 7.3 Denel had developed advanced manufacturing skills and competencies through skills transfer; hence the airbus A400M project was of strategic importance for DSA. The financial position of DSA was the primary reason why Saab pulled out of the shareholder compact with