HDSA PROCUREMENTHDSA PROCUREMENT

• Encourage strategic partnerships between Encourage strategic partnerships between established white suppliers and BEEestablished white suppliers and BEE

• Mentorship and training programmesMentorship and training programmes

• Using Sasol buying power by purchasing on behalf Using Sasol buying power by purchasing on behalf of BEEof BEE

• Operational business support through consultants Operational business support through consultants hand holdinghand holding

• Channeling sufficient viable business to BEE’sChanneling sufficient viable business to BEE’s

PROCUREMENT SUPPORT MEASURESPROCUREMENT SUPPORT MEASURES

HIGHVELD BUSINESS DEVELOPMENT CENTRE HIGHVELD BUSINESS DEVELOPMENT CENTRE (HBDC) - SUPPLIER DEVELOPMENT (HBDC) - SUPPLIER DEVELOPMENT

PROGRAMMEPROGRAMME

• Develops and supports SMME’s to become Develops and supports SMME’s to become independent businesses in SA economyindependent businesses in SA economy

• Holistic range of servicesHolistic range of services• Training (past year 164 entrepreneurs)Training (past year 164 entrepreneurs)• Develop and identify market opportunitiesDevelop and identify market opportunities• Linkages - R30 million business for 60 trained Linkages - R30 million business for 60 trained

entrepreneursentrepreneurs• Database developmentDatabase development

• Access to financeAccess to finance• Interventions with banks and financial service Interventions with banks and financial service

providersproviders• Limited bridging finance Limited bridging finance

HIGHVELD BUSINESS DEVELOPMENT HIGHVELD BUSINESS DEVELOPMENT CENTRE (HBDC)CENTRE (HBDC)

HDSA PROCUREMENT % OF TOTAL HDSA PROCUREMENT % OF TOTAL SASOL LIQUID FUELS SPENT SASOL LIQUID FUELS SPENT

ON GOODS & SERVICESON GOODS & SERVICES

CURRENTLY CURRENTLY 200 HDSA SUPPLIERS 200 HDSA SUPPLIERS

IN A WIDE RANGE OF DISCIPLINESIN A WIDE RANGE OF DISCIPLINES

0

5

10

15

20

25

30

2000 2001 2002 2005 2010

%

Actual Target

Jan - Jun

SASOL’S BEE SASOL’S BEE ACHIEVEMENTS AND ACHIEVEMENTS AND

FUTURE PLANSFUTURE PLANS

CEPR pipeline gas business value - R165 million

Mkumbi we Africa pipeline gas business venture in Mpumalanga

Facilitated BEE participation in Black Top Holdings road binding venture

Chemcity - Real Africa Investment

Outsourcing of group information managementsystems to Comparex - R 1 billion over life of the agreement (10 years)

Formation of Exel

MacAdam road building franchise

STRONG COMMITMENT TO BEESTRONG COMMITMENT TO BEE

DURBAN SOUTH PIPELINE GAS DURBAN SOUTH PIPELINE GAS BEE VENTUREBEE VENTURE

R165 million JVR165 million JV

51% CEPR51% CEPR 49% Sasol Gas49% Sasol Gas

Black controlled (7 groups including disabled)

CEO: Manoj Gokul

Turnover: R120 million growing to R200 million in 2005

Bulk of financing (90%) guaranteed by Sasol

BLACK TOP HOLDINGS - BLACK TOP HOLDINGS - A SUCCESSFUL BEE VENTURE IN THE A SUCCESSFUL BEE VENTURE IN THE

ROAD BUILDING INDUSTRYROAD BUILDING INDUSTRY

Black Top Black Top Holdings Holdings

Employee Share Employee Share TrustTrust

Corevalue Corevalue Investment Investment

Holdings (Pty) LtdHoldings (Pty) Ltd

Quickstep 21 Quickstep 21 (Pty) Ltd(Pty) Ltd

African Value African Value Investment Investment

Holdings (Pty) LtdHoldings (Pty) LtdTosas (Pty) LtdTosas (Pty) Ltd

BTS Empowerment BTS Empowerment Consortium Consortium

(BTSEC) (Pty) Ltd(BTSEC) (Pty) Ltd

Founder Founder MembersMembers

African Value African Value Investment Investment

Holdings (Pty) LtdHoldings (Pty) Ltd

Exel Petroleum Exel Petroleum (Pty) Ltd(Pty) Ltd

Black Top Black Top HoldingsHoldings

18,2%18,2% 25,2%25,2% 13,2%13,2% 18,2%18,2% 25,2%25,2%

31%31% 30%30% 10%10% 29%29%

TURNOVERTURNOVER :: R400 MILLIONR400 MILLION

OPERATING PROFITOPERATING PROFIT :: R30 MILLIONR30 MILLION

EMPLOYEESEMPLOYEES :: 780780

NDVELA AT WORKNDVELA AT WORK

BTH AT WORKBTH AT WORK

MACADAM MACADAM FRANCHISE FRANCHISE

TEAMTEAM

MADIBA’S ROADMADIBA’S ROAD

TurnoverTurnover :: R1.9 billionR1.9 billion

Operating profitOperating profit :: R40 million +R40 million +

Operating profitOperating profitattributableattributable to HDSA to HDSA :: R30 million + R30 million +

Diesel market shareDiesel market share :: 7%7%

Petrol market sharePetrol market share :: 3%3%

No of service stationsNo of service stations :: 140 and growing140 and growing

Direct employment createdDirect employment created• Service stationsService stations :: 1,8901,890• Head OfficeHead Office :: 7070

TOTAL CAPITAL BASETOTAL CAPITAL BASE :: R220 MillionR220 Million

EXEL’S SPECTACULAR GROWTHEXEL’S SPECTACULAR GROWTH

THE MOST SUCCESSFUL BLACK OWNED THE MOST SUCCESSFUL BLACK OWNED PETROLEUM COMPANY IN RSAPETROLEUM COMPANY IN RSA

EXEL SERVICE STATIONEXEL SERVICE STATION

EXEL OWNERSHIPEXEL OWNERSHIP

K ulis i le Inves tm ents (Pty) L td3 ,6%

B o p h irim ile In ves tm en t (P ty ) L td7 ,2%

B uy isa Trust7 ,2%

M arq uis Trad in g (P ty ) L td7 ,2%

M an yan o In ves tm en ts (P ty ) L td3 .6%

M p h o Jess ica Trus t7 .2%

F o rm er Po w erlib G ro up36%

N aled i In d ustry C o m p an y22 .5% (100% S aso l O w n ed )

N a led i In ves to rs Trus t1%

Esta te L a te S o n n y N yath i1%

B alan ce3 ,5%

Exe l M an ag em en t an d S ta ff10%

SAB W IH3 ,5%

N o za la Trus t an dN o za la R eso urces (P ty ) L td - 9 ,5%

Auto w o rkers P en s io n an dPro vid en t F un d s - 13%

Sizan an i Trus t39 ,5%

N aled i Pe tro leum H o ld in g s (P ty ) L tdO w n s 100% o f Exe l Pe tro leum (P ty ) L td

HDSA = 77.5%HDSA = 77.5%SASOL = 22.5%SASOL = 22.5%

Forecourt Forecourt attendantsattendants

13% 13% WomenWomen {{

{{

SASOL FACILITATED THE SASOL FACILITATED THE ESTABLISHMENT OF EXELESTABLISHMENT OF EXEL

Financial supportFinancial support R MillionR Million

Working capital Working capital R 80R 80

Credit for product supplyCredit for product supply R 60R 60

Loan for service station developmentLoan for service station development R 30R 30

Loan for equity stake in Black Top HoldingsLoan for equity stake in Black Top Holdings R 18R 18

Loan guarantees for HDSA equity investmentsLoan guarantees for HDSA equity investments R100R100

Loan to NABFRA/Share CapitalLoan to NABFRA/Share Capital R 2R 2

TOTAL FINANCIAL ASSISTANCETOTAL FINANCIAL ASSISTANCE R290R290

Generation of revenueGeneration of revenue

• Sasol sold all its assets and business legally possible, to Exel

• Product supply agreement at favourable terms

• Product distribution agreement at favourable terms

• Technical support agreement

SUPPORT PROVIDED TO EXELSUPPORT PROVIDED TO EXEL

Knowledge and capacity transfer

• Secondment of Sasol staff

• Training of Exel management and board members

• Access to Sasol logistics network and information technology

SUPPORT PROVIDED TO EXELSUPPORT PROVIDED TO EXEL (Continued) (Continued)

HUNDREDS OF MILLIONS OF RANDS VALUE HUNDREDS OF MILLIONS OF RANDS VALUE CREATED FOR EXEL SHAREHOLDERSCREATED FOR EXEL SHAREHOLDERS

Challenging business environment (mature industry)• Static market

• Declining nominal refinery margins

• Declining real marketing margins

• High capital expenditure

• Refinery upgrades for clean fuels

• Low returns

• Increased competition - Sasol’s market entry

KEY CHALLENGES FOR THE FUTUREKEY CHALLENGES FOR THE FUTURE

IS OUR INDUSTRY ATTRACTIVE ENOUGH FOR BLACK IS OUR INDUSTRY ATTRACTIVE ENOUGH FOR BLACK INVESTORS CONSIDERING OTHER, MORE LUCRATIVE INVESTORS CONSIDERING OTHER, MORE LUCRATIVE

INVESTMENT OPPORTUNITIES?INVESTMENT OPPORTUNITIES?

VARIOUS OPTIONS TO GROW VARIOUS OPTIONS TO GROW BEE EXPLOREDBEE EXPLORED

Grow Exel:

• wholesale and retail exposure only

Equity participation in the refineryoperations

limited access to market

Equity participation in integratedliquid fuels business

THE ROAD AHEADTHE ROAD AHEAD

Sasol needs to restructure its liquid fuels business to allow BEE participation in the liquid fuels value chain

But stay within the limitations and legal boundaries of its commercial agreements (2004)

BEE VULNERABLE IF CONFINED TO ONLY BEE VULNERABLE IF CONFINED TO ONLY CERTAIN SEGMENTS OF THE VALUE CHAINCERTAIN SEGMENTS OF THE VALUE CHAIN

RESTRUCTURING OF RESTRUCTURING OF SASOL LIQUID FUELS BUSINESSSASOL LIQUID FUELS BUSINESS

25% HDSA

75% SASOL

SASOL’S NEW LIQUID SASOL’S NEW LIQUID FUEL BUSINESSFUEL BUSINESS

BEEBEE

COAL & GAS DERIVED FUELSCOAL & GAS DERIVED FUELS

CRUDE DERIVED FUELSCRUDE DERIVED FUELS

TOTAL VALUE OF THE RESTRUCTURED SASOL LIQUID TOTAL VALUE OF THE RESTRUCTURED SASOL LIQUID FUELS BUSINESS IS APPROXIMATELY R10 BILLIONFUELS BUSINESS IS APPROXIMATELY R10 BILLION

SASOL’S SHARE IN TOSAS & FFSSASOL’S SHARE IN TOSAS & FFS

MARKETING INFRASTRUCTUREMARKETING INFRASTRUCTURE

THE ROAD AHEAD: ACTIONSTHE ROAD AHEAD: ACTIONS

Appointed Nkonki Sizwe Ntsaluba and Investec Bank to assist with financing, structuring and partner selection

• Build on ICASA process

Seek board approval for restructuring - November 2002

Established empowerment fund to finance BEE in Sasol’s liquid fuels business

• Launch: Q4, 2002

Sasol and its BEE partners Sasol and its BEE partners revolutionising the South African revolutionising the South African fuel industry in 2004!fuel industry in 2004!

KEA LEBOGAKEA LEBOGA

ENKOSIENKOSI

SIYABONGASIYABONGA

THANK YOUTHANK YOU

REACHING NEW FRONTIERSREACHING NEW FRONTIERS