AFRICA & MIDDLE EAST ASIA PACIFIC EUROPE NORTH AMERICA SOUTH ASIA This presentation is confidential and is not for circulation or publication. The issues outlined herein are for the benefit of whom it is submitted to in good faith, and who is deemed to have accepted responsibility for ensuring that the confidentiality of this presentation is maintained at all times. Presentation and material © Innovation Group (Pty) Ltd (2008) INNOVATION GROUP ROAD SHOW

2 Presentation and material © Innovation Group (Pty) Ltd (2009)

3 INNOVATION GROUP SOUTH AFRICA Presentation and material © Innovation Group (Pty) Ltd (2009) Empowerment: Level 5 on DTI scorecard Business Model: Installation and incident management Risk mitigation Cost reduction Customer service & fulfillment Volumes: 750 people 180,000 installations & incidents p.m. 16,000 sales fulfilled p.m. R450m paid to service providers p.m. 1,000 geyser installations p.m.

RESTRUCTURING Presentation and material © Innovation Group (Pty) Ltd (2008) 4

5 TERMINATION AND MEANING HOME OWNERS COVER (HOC) This refers to the normal house/home insurance that is required when purchasing the house. (SAHL, ETANA) HOME ASSISTANCE This refers to a value added product sold by insurers to their customers to assist with any home related problems. Innovation Group will settle for call out and first hours labour; the rest is for the client's expense. (MIB, HOL)

EXCLUSIONS Please refer to policy wordings on web. It is your responsibility to know the policy wordings of each product What is covered What is NOT (Exclusions) o Corroded pipes o Maintenance related claim o Etc Presentation and material © Innovation Group (Pty) Ltd (2008) 6

Process Flow The normal claims procedure is as follows: Call registered with Gateway SP Appointed SP to identify client (product ) Quotation/Damage report to Back Office Claim authorized Work completed Invoice correctly Payment process Presentation and material © Innovation Group (Pty) Ltd (2008) 7

8 HOC Process Flow Client Calls in Registered Payment Request Invoice Received Invoice Follow Up Authorized Quote Received SP AcceptSP Appointed Payment Authorized Gateway Back Office Payments Claim Resolved Appointment Made

Presentation and material © Innovation Group (Pty) Ltd (2008) 9 Gateway Contact Process Supervisor SAHLIndwe Bestsure Hollard Glenrand Supervisor Supervisor Products

Presentation and material © Innovation Group (Pty) Ltd (2008) 10 HOC (SAHL) Back Office Contact Process Manager Consultants , Press 2 (SP), Press 1 (Damage Report/Update) Only for Escalation Fax to to innovation-group.com Submit Quotes on the Web: Quotes/Damage Reports If you need to contact the Back Office Assessor Consultant Query Agent

Presentation and material © Innovation Group (Pty) Ltd (2008) 11 SAHL Payments Contact Process Manager Team Leader Consultant , Press 2 (SP), Press 2 (Invoice Query) Only for Escalation Fax to to innovation-group.com Submit Invoices and Release Forms on the Web: Invoice and Release Forms If you need to contact the Payment Department For Final Escalation Team Leader

Presentation and material © Innovation Group (Pty) Ltd (2008) 12 Presentation and material © Innovation Group (Pty) Ltd (2008) 12 Home Assistance Payments Contact Process Manager Team Leader Consultant Only for Escalation Fax to to innovation-group.com Submit Invoices and Release Forms on the Web: serviceprovider Invoice and Release Forms If you need to contact the Payment Department For Final Escalation

RATE SCHEDULES The rate schedules are being finalized as we speak. Please understand that we cannot just up our rates. Our clients have to accept the increases and we have to justify it. The rates will be displayed on the website as soon as approved and it will be incorporated into the web functionality in phases. Presentation and material © Innovation Group (Pty) Ltd (2008) 13

REQUIREMENTS FROM ALL SP’S Innovation Group requires the following from our SP’s: Public Liability Insurance Internet Line – preferably ADSL (100Mbps) Digital Camera Office Number Cell phone number After hours number VAT vendor Presentation and material © Innovation Group (Pty) Ltd (2008) 14

CONSIGNMENT STOCK All our plumbers HAVE to make use of consignment stock Gauteng = Suncol KZN = D&A (Sanware) Cape Town = Modern Bathrooms This is a 3 way business relationship. Monthly meeting Claim number after inspecting – not before! Presentation and material © Innovation Group (Pty) Ltd (2008) 15

GEYSER RETURNS Old geysers have to be marked to state claim number, address and client details. These old geysers have to be collected by the merchant, who will then test the geysers. The merchants will provide Innovation with 2 monthly reports: Geyser Return Report Geyser Testing Reports Presentation and material © Innovation Group (Pty) Ltd (2008) 16

AUDITS Monthly the following audits are happening 50 plumbing 20 remedial Reporting to clients Disciplinary Presentation and material © Innovation Group (Pty) Ltd (2008) 17

INVOICING You impact your payment! All geyser invoices have to include: Old geyser details o Manufacturer o Size o Serial Number New geyser details o Manufacturer o Model o Size o Serial Number Presentation and material © Innovation Group (Pty) Ltd (2008) 18

INVOICING You impact your payment! Invoice requirements: VAT Numbers Your contact details Your physical Address Correct Insurer C/O Insurer VAT number Indicate 2 or more geysers (2 nd geyser replaced) ADMIN PART OF RATING => Work Flow Presentation and material © Innovation Group (Pty) Ltd (2008) 19

WARRANTIES It is your responsibility Check serial numbers Innovation will not settle – Exclusion Contact manufacturer Presentation and material © Innovation Group (Pty) Ltd (2008) 20

WORKMANSHIP GUARANTEE Your workmanship should be guaranteed as follows: 3 month plumbing, electrical, etc 1 year for building/construction Presentation and material © Innovation Group (Pty) Ltd (2008) 21

INSPECTION FEES Inspection Fees will be settled when: Innovation requests inspection/2 nd opinion Claim excluded – maintenance, under guarantee Inspection Fees will NOT be settled when: Any work has been completed Client didn’t make appointment – SP to confirm before going out Presentation and material © Innovation Group (Pty) Ltd (2008) 22

AFRICA & MIDDLE EAST ASIA PACIFIC EUROPE NORTH AMERICA SOUTH ASIA This presentation is confidential and is not for circulation or publication. The issues outlined herein are for the benefit of whom it is submitted to in good faith, and who is deemed to have accepted responsibility for ensuring that the confidentiality of this presentation is maintained at all times. Presentation and material © Innovation Group (Pty) Ltd (2008) THANK YOU!