JPPF MEETING 23 OCTOBER 2012 Upper Eastside Hotel Cape Town CONTRACTS MANAGER- ALPHEUS LEGKANYANE JPPF 23 October

CONTENTS 1. OVERVIEW OF SERVICES PORTFOLIO 2. SPEND REPORTS: a.Security Services b.Catering Services c.Cleaning Services d.Garden Services e.Hygiene Services f.Furniture Removal Services g.Lift Services JPPF 23 October 20122

SERVICES OVERVIEW 1.GROWTH IN PARTICIPATION 2.TENDER PROCESS TURNAROUND TIME 3.NEW SERVICES INTRODUCTION 4.CHALLENGES 5.OPPORTUNITIES 6.HIGHLIGHTS JPPF 23 October 20123

PUR 019: SECURITY SERVICES  GROWTH IN PARTICIPATION -104% spend increase - Contracts value = R31.9m To R65.9M - New participants: UNIZULU- RB, TUT - Central region is the highest  PRICE INCREASE (5% - 9%) Statutory price increase Effective 1 st September year as per PSIRA agreement  SPEND COMPARISON JPPF 23 October 20124

PUR 006: OUTSOURCED CATERING  GROWTH IN SPEND (19%) - Contract value = R22.4m To R26.7m - KZN region is the highest  PRICE INCREASES (6% -7.4%) - Statutory price increase  CONTRACTS IN PROGRESS - TUT & MUT  CHALLENGES - Insourcing vs Outsourcing  SPEND COMPARISON JPPF 23 October 20125

PUR 045: CLEANING SERVICES  GROWTH IN PARTICIPATION (20%) - Contract value = R42.8 To R51.2m - KZN region is the highest - Central Region has highest participation  CONCLUDED CONTRACTS - UKZN Buildings & Residences - TUT Residences and CAPRISA  TENDER PROCESS IN PROGRESS - UNIVEN, UFH and UFS- QwaQwa Campus  OPPORTUNITY - Potential growth SPEND COMPARISON JPPF 23 October 20126

PUR 048: GARDEN SERVICES  GROWTH IN PARTICIPATION (6%) - Contract value = R9.1m To R9.6m - Central region is the highest  CHALLENGES - Non participation  SPEND COMPARISON JPPF 23 October 20127

PUR 046: HYGIENE SERVICES  GROWTH IN PARTICIPATION (36%) - Contract value = R4.1m To R5.6m - Central is the highest  NEW BUSINESS - Steiner prepared to offer all contracted members PURCO SA rate. - Savings projected at R1.5M  OPPORTUNITY - To save and increase member participation  SPEND COMPARISON JPPF 23 October 20128

PUR 080 : FURNITURE REMOVAL  GROWTH IN SPEND (18%) - Contract value = R2.9m To R3.4m - Central region is the highest  CHALLENGES - Non participation by members  TENDER PROCESS IN PROGRESS - Engagement letters issued to members - Poor response to engagement letters  SPEND COMPARISON JPPF 23 October 20129

PUR : LIFT SERVICES  GROWTH IN SPEND (13%) - Contract value = R4.8m To R5.4m - Central region is the highest  CHALLENGES - Non participation by members  TENDER PROCESS IN PROGRESS - UJ  PRICE INCREASES - 4.9% from 7.5% Proposed - Administration and problem solving  SPEND COMPARISON JPPF 23 October

PORTFOLIO: HIGHLIGHTS  SAVINGS - R1.3m achieved  NEW BUSINESS VALUE - R83m  HYGIENE CONTRACT - All Steiner contracted offered PURCO SA pricing - Savings of R1.5m for the next financial year  LIFT PRICE INCREASES - 4.9% from 7.5% proposed  SPEND COMPARISON JPPF 23 October

THANK YOU JPPF 23 October