M46; GROUND FLOOR; MARKS BUILDING Presentation to THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT 12 june 2018 M46; GROUND FLOOR; MARKS BUILDING

CEF Strategy Review – Why now? In past, CEF has successfully implemented South Africa's energy strategies But now, PetroSA is in challenging financial position CEF has low relevance, unbalanced portfolio, and complex governance CEF is at a challenging point New strategy makes CEF sustainable and relevant Short-term focus on PetroSA turnaround Long-term focus on economic transformation, having significant impact on South Africa's energy sector, financial sustainability, and social impact

Today, CEF is at a challenging point Portfolio consists mainly of PetroSA Limited relevance in market No significant group profitability <6% Market share in refining 5 90% Revenue from PetroSA -481M ZAR 2017 -5 -10 -15 EBITDA ZAR B

PetroSA is in a difficult financial situation PetroSA cash reserves are shrinking fast Depletion of gas feedstock PetroSA will run out of cash and gas reserves in early 2022 R9.6B decommissioning liabilty FY12 FY14 FY16 FY18 FY20 FY22

To address this, the Group Strategy Review was undertaken Completed Market trends and CEF starting point Completed 3 weeks Strategic options Assess external environment Benchmark best practices Assess starting point Ongoing 8 weeks Implementation and Operating Model Define CEF's role Assess option space Prioritise strategic path 5 weeks Implementation roadmap Governance recommendations Capabilities plan

Group Strategy Review Government stakeholders Interactions 9 workshops >1000 hours of exchanges CEF Group >55 interviews External expert opinions >15 interviews Group Strategy Review involved key stakeholders and all subsidiaries to design new strategy

Our ambition and priorities CEF has redefined how it fulfils its mandate Create significant impact on South Africa's energy landscape… …in a financially sustainable way… ...and in a socially responsible manner ..while transforming the local energy sector...

CEF should aspire to be the Catalyst for South Africa's energy transition ('vision 2030+')... ...But must act now to build the country's future Today Mid-term Long term ??? Electric Vehicles Energy diversification (Upstream, NG) CEF as leader in sustainable energy solutions CNG Cleaner Fuels CEF + PetroSA Turnaround 2018 2023 2028 2040 Years

Turnaround PetroSA to a viable company Accelerate transition from oil to EV Build a Retail position to support EV play Based on this, CEF will prioritise 6 strategic core areas And a potential additional area Develop meaningful position in Renewables (under discussion) Catalyse local E&P, facilitate transition to natural gas Lead with DoE interim transition to clean fuels Manage strategic stock

Communicate the Change Support the Strategy We need your support to make a major impact on South Africa's energy industry We in turn will continue to update you on a regular basis Communicate the Change with other stakeholders Provide feedback

Thank you Mr. Godfrey Moagi Acting CEF Group CEO Email: GodfreyM@cefgroup.co.za Direct: +27 10 201-4703 Switchboard: +27 10 201-4700 Page  11