Submission to Parliament on Engen Transformation 15th September 2010 Natie Maphanga GM -Corporate Affairs

Contents Engen’s transformation journey 7 pillars of transformation Ownership Management Control Employment Equity Skills Development Preferential Procurement Enterprise development Socio Economic Development Way forward / recommendations

Ownership In 1998 a deal was concluded between Petronas and WAIH, this was one of the most significant BEE deals at that time The deal allocated 20% of the full Engen value chain to WAIH Currently, Engen’s major shareholder, Petronas, is looking at the remaining 5%

Management Control Black representation at Board Level 35% Black Director representation: 25% Black Independent Non-Executive Board Members 100% Engen CEO early in 2000’s was a woman. Black representation at Exco - 42%.

Employment Equity Male Headcount 2009 78% of male workforce is black Occupational Level African Coloured Indian White Foreign National Total Top Management Total 3 1 5 11 Senior Management Total 14 9 33 2 69 Specialists & Mid-Management Total 101 109 140 268 6 624 Skilled Technical Total 294 201 186 175 856 Semi-skilled and Unskilled Total 631 138 105 41 915 Grand Total 1040 463 441 522 2475 78% of male workforce is black

Employment Equity Women make up 25% of the workforce Female Headcount 2009 Occupational Level African Coloured Indian White Foreign National Total Top Management Total 1 2 Senior Management Total 11 7 8 28 Specialists & Mid-Management Total 40 53 26 69 5 193 Skilled Technical Total 145 143 35 104 427 Semi-skilled and Unskilled Total 87 50 16 31 184 Grand Total 283 253 80 212 6 834 74% of female workforce is black

Employment Equity Improvement plans (Talent Management) in place for: Female employee development Disabled employees 77% of the workforce is black

Skill Development Leadership in Oil and Energy Programme 55 employees (2006  2010) have graduated from the Leadership in Oil and Energy Programme since 2006 (profile: 72% Black, 80% women and 20% men) Artisan Skills Training Project The Artisan Skills Training Project launched by the Oil Gas and Manufacturing (OG & CM). The project is on track to produce 1,200 qualified artisans by 2010.

Preferential Procurement Procurement Spend from all Suppliers based on the BEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 75.5%, equates to R19bn. Further effort required on: Procurement Spend from Qualifying Small Enterprises or from Exempted Micro-Enterprises based on the applicable BBBEE Procurement recognition Levels as a percentage of Total Procurement Spend Working on women owned & controlled enterprises and, product and crude importation (already working with a few HDSA owned Shipping and Trading (products) Co’s)

Enterprise Development Concluded Reatile-Engen deal Merger involved Engen’ South African LPG marketing interests. The deal was officially signed in August 2010. The merger involves an issue of new shares in Reatile, with Reatile Resources now holding 55% and Engen 45% of the equity. R50 mil partnership with NEF The NEF will provide financing for balance of service station purchase costs allowing Black dealers entrance to the market. Engen will stand surety for half of the average R5 million + purchase price, and will cover training, evaluation and business support costs (ED). First site was awarded to a Black couple in Jhb – (taken at 0.8 and now pumping 1,3 mL pm! ) Facilitated the Fluor-Igoda engineering deal at ENREF The formed entity handle most of ENREF’s conceptual and detailed Engineering work.

Socio-Economic development Our focus is on 3 pillars – Education, Safety & Environment. Approach… Not just financial – capacity building Developmental – sustainable solutions Partnership to co-create and catalytic Mutli-stakeholder accountability Areas of focus Education (25 yr history…) 7 Maths & Science schools in KZN, EC, WC & GP In Dbn, we have 2 big M&S projects focusing on ENREF fenceline communities (covering ~ 1,000 students) Embarked on a Whole School Development Intervention (rural development) – x3 pilot in EC, KZN and Limpopo.

Socio-Economic Development… Environment Schools based programmes – recently launched Eduplant with WW and Absa. Food gardens and tree planting Contributing member to Environment organizations Safety Road and paraffin safety (own initiatives and PASASA) Children’s Red Cross & St Augustine Burns Units NSRI stations in 3 provinces. Health Education and awareness HIV/AIDS Employee and Dealer participation (matched R:R) Sponsorship leveraging – soccer, motorsport & cycling. Poverty Alleviation – Feedback (formerly Foodbank), various NGO’s.

Way forward / recommendations LFC : BBBEE Codes. Alignment of all authorities on transformation (using existing tools and instruments to monitor…) PPPFA SOE’s Gvt Departments Internally within Engen – increased focus on transformation.

Thank you