MEDIA PRESENTATION September 19 2007 BY MS MARIA RAMOS

AGENDA STRATEGY REVIEW PERFORMANCE RVIEW CONCLUSION AND WAY FORWARD

TRANSNET’S VISION AND MISSION Transnet Limited is a focused freight transport company delivering: Integrated, efficient, safe, reliable and cost effective services which help promote economic growth in South Africa PROVIDING Market share Productivity and profitability Capacity for customers ahead of demand IMPROVED INCREASED 3

TRANSNET’S CUSTOMERS PREFER US BECAUSE: TRANSNET VALUES TRANSNET’S CUSTOMERS PREFER US BECAUSE: We are: Reliable Trustworthy Responsive Safe service provider OUR EMPLOYEES ARE: Thinking Disciplined Results orientated Ethical Committed Safety conscious Accountable 4

4-POINT TURNAROUND STRATEGY Strategic Intent Focused freight transport company Enabling economic growth 4-point Turnaround Strategy Redirecting & re-engineering the Business Strategic Balance Sheet Management Ensure Corporate Governance & Risk Management Develop Human capital Delivering efficient & Competitive services Revitalising HR by transforming culture and behaviour of staff Be a preferred and sustainable employer Focusing on: - Talent management - Leadership - Transformation - Performance and reward management Highest standards of corporate governance Improvement in risk management, especially safety in all operations Dispose all non-core activities and focus on core business units Appropriate rate of return on invested capital (>WACC) Post retirement funding Optimise cash flow and cash management Strategic asset/liability management Improving efficiencies and effectiveness of core divisions Realising port-rail synergies Customer focus Infrastructure and maintenance

RATIONALE FOR REBRANDING We chose the monolithic route to mirror the new corporate strategy and structure of the Company To communicate the integrated and customer-centric approach of the new Company Enforcement of the consistent application of the new Transnet identity throughout the organization To present a consistent face to customers as a platform to build and sustain momentum as Transnet gears itself for sustainable growth To consolidate employee energies, and maximise economies of scale and brand assets in building Transnet and its unique offerings To create a singular platform to leverage and reinforce the “One Company, One Vision” philosophy 6

FINDINGS AND RECOMMENDATIONS The current name, Transnet, should be retained Transnet should refresh its brand image to reflect: - Customer centeredness - Reliability - Cost-efficiency - Transparency - Competitiveness - Flexibility - Operating Division alignment - Improved communication Preference for a monolithic or endorsed brand architecture, particularly amongst customers. In particular, customers, preferred one dominating name for Transnet with reference to its Operating Divisions to emphasize unity but distinguish between the core businesses

NEW TRANSNET BRAND ARCHITECTURE Discontinued Businesses Supporting businesses: Transnet Properties and Transnet Projects

THE WAY FORWARD: BRANDING Use the brand to: Underpin the growth strategy Drive integration Support Transnet’s new culture Establish Transnet as a leading corporate in South Africa Enabling growth by optimising the efficiency and competitiveness of the country’s freight transport and logistics Act as a catalyst for the growth of the economy 9

STRUCTURE TO SUPPORT STRATEGY Discontinued businesses Freight Rail RAIL Engineering TRANSNET LIMITED PORTS National Ports Authority Port Terminals Pipelines PIPELINE Operational divisions (continued businesses) SA Express Transtel Telecoms Viamax Autopax freightdynamics Housing Lending Book Shosholoza Meyl arivia.kom Discontinued Businesses Supporting businesses: Transnet Property and Transnet Projects

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Investment On target with 2007 (R11,7 bn) roll out of five-year investment plan Replacement of assets (R8,2 billion) Expansion investments (R3,5 billion) Major projects commenced and spending for the next five years is as per Corporate Plan New Multi Product Pipeline (NMPP) from Durban to Johannesburg (R9,3 billion; latest estimate R11.2bn) Widening and deepening of the entrance channel at the Port of Durban (R2,6 billion) New container terminal at Durban Pier 1 (R1,3 billion) 11

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Investment continued Major projects commenced and spending for the next five years is as per Corporate Plan on: Durban container terminal re-engineering (R1,4 billion) Cape Town container terminal expansion (R4,2 billion) Ngqura Container terminal (capacity from 2010 onwards) (R6,1 billion) Coal line capacity expansion to 86 mtpa (R3,3 billion) Ore line expansion to 47 mtpa (R3,8 billion) Acquisition of 404 new locomotives (R4,9 billion) Project management: Establishment of Transnet Projects Focus on: Co-ordination, implementation, skills, planning and delivery 12

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Disposal of non-core assets R20 million and R3 million, respectively Metropolitan Life (including Kagiso Trust Investments) and Fifth Quadrant respectively Transnet Pension Fund Administrators (100% - administration and investment services) R1.8 billion London & Regional Consortium V&A Waterfront Holdings (Pty) Ltd (26%) R30 million VAE SA (Pty) Ltd VAE Perway (Pty) Ltd (35%) R70 million Equity Aviation Services (Pty) Ltd & employee share scheme Equity Aviation Services (Pty) Ltd (49%) R250 million (funded by issue of equity of 15% in Neotel (Pty) Ltd via Transpoint Properties (Pty) Ltd) Neotel (Pty) Ltd (formerly the Second Network Operator) Transtel Telecom FSN Metro assets R2 billion (no cash flow – transaction effected by share buy-back) Department of Public Enterprises South African Airways (Pty) Ltd (100%) Price Buyer Businesses disposed 13

Disposal of non-core assets – Subsequent events STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Disposal of non-core assets – Subsequent events R5,7 billion – Cash received Newshelf 664 (Pty) Ltd “C” Preference share Approximate R1,0 billion Cash to be received shortly Bidvest Ltd Viamax Pty Ltd (100%) Fair value of R1,4 billion – Subject to Competition Commission approval FirstRand Bank Ltd Transnet Housing Loan Book Price Buyer Businesses Total proceeds of disposals approximately R10bn 14

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Human capital development Focus on: Achievements: Skills demand planning Capacity building and skills development Talent management - Skills mapping completed - Leadership development plans - Prioritising skills and succession planning SPO’s defined for all managers and performance assessed Performance management Attract critical skills - HR processes in place to become employer of choice Organisational culture - Change management programmes in place HR Enablement - New HR policies, standardised supporting procedures Additional capacity building 175 additional engineering bursaries 173 students at institutions of technology (to be increased to 300) 1 261 additional apprentices in different trades 20 Thuthuka bursaries through SA Institute of Chartered Accountants 15

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Re-engineering the business: Vulindlela projects Second year of implementation Improve productivity levels and operational efficiencies Orientate businesses towards customers Address safety Culture of planned maintenance Increase in market share – volume growth (especially GFB - Transnet Freight Rail) Savings of more than R2 billion have been achieved since inception 16

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Re-engineering the business: Vulindlela projects continued Success/achievements in 2007 Improved GFB freight flows (3 mt) – current tempo First year for a decade where volumes did not decrease Capacity created on Iron Ore and Coal Line that exceeds current demand from clients Increase in monthly port handling capacity at DCT (TEU’s 186 000 vs 158 000) Procurement savings of R500 million per annum and reduction in safety incidents (R200 million) 17

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Efficiency improvement: Transnet Business Intelligence projects (“TBI”) Implementation of TBI projects Effective use of technology, world class systems and processes Financial management and reporting Improving processes and systems that enable information management Identified KPI’s across businesses to measure key value drivers Benchmarking against international companies to ensure world class performance Implemented KPI project to measure: Key volume drivers KPI performance weekly/monthly Performance vs benchmarks – all areas of business 18

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Transnet Second Defined Benefit Fund Active management and leadership from Transnet Currently in surplus of R1,9 billion as opposed to being in deficit in 2006 of R1,6 billion (aided by the sale of MTN shares-M Cell and V&A Waterfront) Rule amendments approved by the Ministers of Finance and Public Enterprises - Generally to enable bonus amounts to be paid to pensioners to exceed 2% pension increase (subject to affordability) Transnet paid ex-gratia bonuses of R125 million to pensioners All received an additional 1% Previously disadvantaged widows and members with >15 years service who receive low pensions and/or also over 65 years old received additional amounts 19

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Transnet Pension Fund Act changes have received presidential approval to enable non-Transnet employees of businesses transferred to Government to remain members Rule amendments approved by the Ministers of Finance and Public Enterprises Fund will become multi-employer with new employers guaranteeing the obligations of its employees and pensioners Fund now in substantial surplus of R 1.6 billion 20

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Transnet Retirement Fund Act changes have received presidential approval to enable non-Transnet employees of businesses transferred to Government to remain members Rule amendments approved by the Ministers of Finance and Public Enterprises 21

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Economic Regulation National Ports Act Act in place from November 2006 Places responsibility on Transnet National Ports Authority to ensure safe, efficient and effective functioning of ports system Independent Regulator oversees Transnet National Ports Authority’s functions, approves tariffs, hears complaints and appeals from port users Transnet is investing in systems and capacities to perform additional functions prescribed by legislation Interacting with shareholder in certain aspects of Act 22

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Economic Regulation continued Transnet Pipelines NERSA (energy regulator), declined Transnet Pipelines’ application for 5,6% increase Regulations for, amongst other issues, determining tariff increases not yet finalised Transnet engaging with relevant authorities; important that tariff methodology enables Transnet to earn a fair return on invested capital (> WACC) Have formed a public policy and regulatory unit to lead Transnet’s strategy and interactions with the Regulators 23

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Risk Management Operational Risk Established a Risk Committee of the Board and appointed a Chief Risk Officer that serves on the Executive Committee Appointed Group Executive Human Resources and HR Sub-Committee dealing with human capital in sustaining the turnaround Improved safety measures and roll out safety awareness and training programmes Reviewed safety procedures and strengthened capacity in problematic areas Improved controls and campaign against fraud 24

STRATEGY IMPLEMENTATION: ACHIEVEMENTS TO DATE Risk Management continued Financial Risk Financial Risk Framework in place covering all risks (interest, currency, market) Asset and Liability Committee ensures that financial risks are effectively managed Stringent financial objectives are set to ensure that targeted financial ratios are achieved/maintained Improved internal financial and system controls 25

CAPEX SPENDING (CONTINUING BUSINESSES) FIVE-YEAR PLAN: R78 billion 13% Pipelines Port Terminals 12% National Ports Authority 24% Rail Engineering 5% Freight Rail 45% PIPELINE Transnet Pipelines R10 bn Multi-product pipeline – R9,3 bn Gas line upgrading – R0,2 bn PORTS Transnet Port Terminals R9,5 bn Durban – R0,9 bn Richards Bay – R0,7 bn Ngqura – R1,5 bn Cape Town – R0,4 bn Saldanha – R2,9 bn Transnet NPA R18,5 bn Richards Bay – R0,8 bn Ngqura – R4,7 bn Cape Town – R3,8 bn Durban – R7,6 bn Floating craft – R0,7 bn RAIL Transnet Rail Engineering R4,1 bn Equipment - R2 bn Upgrade of facilities – R1,1 bn Transnet Freight Rail R34,8 bn Coal Line – R4,9 bn Ore Line – R3,8 bn General Freight – R15,3 bn Maintenance Capitalisation – R10,8 bn * Latest estimate R11.2bn * 26

CAPEX FIVE-YEAR PLAN: R78 billion* Annual spending over five years R12.7 bn R17.5 bn R21.5 bn R16.9 bn R9.4 bn R78 bn Five-year plan 2012 2008 2009 2011 2010 Cumulative Rail Ports Pipeline and other * Continuing businesses 27

SHAREHOLDER’S COMPACT Performance area Key performance indicator (KPI)/measure   Benchmark 2007 Target 2007 Actual Performance Capital/financial efficiency** EBITDA margin(%) # > 35*** 34.8 40.7 Achieved Cash interest cover (times)# >5*** 5,4* 5.4 Gearing ratio(%) -2007 40 - 50*** 47.9 39 -2006 59.0 47 CFROI(%) >6*** 5.8 6.8 4.1 Infrastructure investment % of actual capital expenditure compared to budget expenditure >90% of target R11 847 million R11 674 million 99% Achieved 100% Achieved % of total maintenance spent compared to budget # R3 890 million R5 495 million 141% Achieved * Including sale of shares ** Discontinued business -SAA, freightdynamics,Viamax and Autopax *** These benchmarks are the target of performance in the medium term (next three years) # Key performance indicators not applicable in prior year

BROAD-BASED BLACK ECONOMIC EMPOWERMENT Policy: Transnet fully endorses and supports the Government’s Broad-based Black Economic Empowerment (“BBBEE”) Programme and has aligned its policies with the DTI’s Codes of Good Practice which were gazetted on 9 February 2007. (Some alignments need to take place between the DTI Codes and the Department of Transport’s new draft Rail Transport Charter) Transnet encourages join ventures with and sub-contracting to BBBEE companies Achievements: During the 2006/07 financial year, the Operating Divisions spent R10.6 billion externally with suppliers, of which R3.9 billion went to broad based BEE companies, up R600 million from 2006

BROAD-BASED BLACK ECONOMIC EMPOWERMENT Strategy – BBBEE going forward: Transnet will participate in the Rail Transport Charter workgroup to ensure alignment between the DTI and Department of Transport scorecards Transnet has had most of its high-value suppliers accredited against the DTI scorecard and will continue to encourage all its tenderers/suppliers to do so Having had itself accredited, Transnet scored 56.8 on BBBEE, equating to a “Level 5”, recognition level of 80%. A BBBEE Task team has subsequently been created at Transnet Corporate office to improve this score by driving strategy and coordinating all elements of the DTI Scorecard Over and above Transnet’s BBBEE and Supplier Development strategies, we will implement a plan for Competitive Supplier Development (“CSDP”) in alignment with our support of AsgiSA. This plan will consider opportunities to develop globally competitive local suppliers (especially from the BBBEE ranks) through various strategic initiatives

SUBSTANTIAL IMPROVEMENTS IN FINANCIAL PERFORMANCE DEMONSTRATED Transnet Performance Highlights: Three-Year View Improvement vs 2004 208% R11,7 bn R3,8 bn Capex (excl. Aviation) 278% R37,4 bn R9,9 bn Shareholders equity 53% 39% 83% Gearing 70% 6,8% 4,0% Cash flow return on investment (CFROI in real returns) 54% 5,4 times 3,5 times Cash interest cover 139% 40,7% 17% EBITDA (%) 78% R8 470m R4 750m Operating profit 2007 Actual 2004 Actual Measures Four-point turnaround plan starting point All measurements exceeded the Shareholder’s Compact requirements

THE WAY FORWARD

THE FOUR-POINT TURNAROUND PLAN WAS DEVELOPED TO STABALISE TRANSNET Enabling economic growth Delivering efficient & competitive services Four- point Turn- around Strategy Redirecting and Re-engineering the Business Strategic Balance Sheet Management Ensure Corporate Governance & Risk Management Develop Human Capital Growing a focused freight transport company Strategic intent Transnet’s situation in 2004/05 Lack of clear strategic direction Weak financial performance and controls Unfocussed and inefficient business structure – significant non-core investments Low morale: Lack of investment in Human Capital Poor risk management and governance Lack of capital investment 1 2 3 4

FROM FOUR-POINT TURNAROUND TO FOUR-POINT GROWTH STRATEGY Priority corridors Integrated commercial management Cross-divisional operational integration Efficient asset utilisation Planned maintenance in all divisions Cost effective procurement Shared services Integrated capital, operations, and financial customer planning Focused investment for growth Capital portfolio optimisation Strategic asset/liability management Funding strategy Delivery on safety performance Complying to the highest standards of corporate governance Enterprise risk management Enterprise performance management (EPM) Accelerate implementation of Human Capital strategy Talent management including critical skills Remuneration based on performance against strategic outcomes Value and culture Re-engineering integration, productivity and efficiency Capital optimisation and financial management Safety, risk and effective governance Human capital execution Growth through:

SUMMARY OF THE STRATEGY Drive cross-divisional capital projects and capacity planning Focus Vulindlela on integrated cross-functional corridor rollout Implement integrated commercial management Implement focused management reporting and Enterprise Performance Management Efficient asset utilisation Enhance safety, risk and governance Accelerate Human Capital strategy implementation

THE SHAREHOLDER MANDATE IS ADDRESSED WITHIN THE NEXT HORIZON OF THE TRANSFORMATION PROCESS Transformation horizons for a networked organisation Accelerate Human Capital strategy implementation Implement integrated commercial management Long-term capacity planning Focus Vulindlela on integrated, cross functional corridor rollout (using ‘standardised” improvements) Improve cross-divisional capital projects and financial planning Implement focussed management reporting, KPI analysis and Enterprise Performance Management Best practice CAPEX Funding strategy Develop customer services (e.g. capacity management and supply chain integration products) Strategic organisational initiatives Develop and implement long term network improvement concepts Achieve world-class performance levels Build long term stakeholder relationships Explore international expansion ‘Stabilise the core’ ‘Optimise and extend growth’ ‘Expand competitive advantage’ Current position ‘Stop the bleeding’ Financial restructuring New freight strategy and disposal of non-core assets Restructure corporate centre Create Human Capital strategy Risk and governance Implement critical infrastructure projects Launch Vulindlela to stabilise key operational functions and capture productivity Implement critical capability building Complete disposals Shareholder Compact

THERE ARE SEVEN MAJOR LEVERS FOR GROWTH Roll out of Capex plan: Optimal integration and allocation across divisions Increase in investment to create capacity 1 Vulindlela re-engineering initiatives Productivity/efficiency improvement 2 Safety Human Capital Embedding safety culture in organisation (ERM) Navigator and Group Human Capital programmes Key drivers for success Major levers Integrated commercial management Customer focus and orientation 3 Sustainable service delivery 4 Volume growth and optimal asset utilisation Financial strength and sustainability 5 6 7 Key enablers

THE END THANK YOU