Global Power Company of the Year 2001 Proudly South African Minerals and Energy Portfolio Committee 19 March 2003

ESKOM HOLDINGS LIMITED Global Power Company of the Year 2001

Content Section AWho are we Section BLong-term trends Section C Business performance 2002 Section D Financial plan Section E Budget 2003

ESKOM Who are we Section A

Eskom Strategic Intent Eskom will be the pre-eminent African energy and related services business of global stature. Values - Integrity- Excellence - Innovation- Customer satisfaction

Who are we E SKOM R EGULATED Generation Transmission Distribution E SKOM NON- R EGULATED Engineering Power business operations Primary Energy Telecoms and Information Technology Eskom

General features Wholly State-owned Is the ninth largest electricity utility in the world by sales Separate legal entity under Companies Act (previously Electricity Act and Eskom Act) Managed on business principles Is financed by net financial market liabilities & investments as well as reserves Supplies approximately 95% of electricity in South Africa and 50% in Africa Electricity sales in 2002 were GWh Internationally, among the lowest cost electricity providers

Industrial electricity prices Supplied by NUS Consulting Group’s International Electricity Report April 2002

Sales (GWh) Source: Data Monitor UK, 2001

General features Generation Operates 24 power stations with a nominal capacity of MW Operates the largest dry cooling power station in the world Technical performance at world class standards Satisfied a peak demand of MW this year

General features Transmission Supports the development of a southern African transmission grid to encourage co-operation and accelerate growth in the region Has km of transmission lines covering the whole country.

Transmission Windhoek Gaborone Pretoria Johannesburg Cape Town Maputo Mbabane South Africa Swaziland Lesotho Namibia Botswana Zimbabwe H H H H P H H T T ET T P N

South African grid superimposed on Europe

General features Distribution Has km of distribution and reticulation lines Satisfies the electricity needs of customers Has electrified 2,8 million homes since 1991

General features Eskom Enterprises Is the non-regulated subsidiary Is the vehicle for expansion into Africa and beyond. Presence in Europe, Asia and a substantial presence in Africa

ESKOM Long-term trends Section B

Electrification CUMULATIVE NUMBER OF HOMES ELECTRIFIED 2.8 million homes electrified

Black economic empowerment R’m Spent R13.3bn over a five year period Spent R197m with women empowered enterprises in 2002

Employment equity (MANAGERIAL AND SUPERVISORY CATEGORIES) %

Gender equity (MANAGERIAL AND SUPERVISORY CATEGORIES) %

Real price decrease Tariff increase deflated by average consumer price index Base = 100 in 1990 Benefit to customer in excess of R72.6 billion

ESKOM BUSINESS PERFORMANCE 2002 Section C

Summary of salient points

Overview Total productivity was positive to the extent of R382m or 1.6% First dividend of R549m paid

Maintained world class technical performance eg. UAGS better than international best quartile Sustained good environmental performance with further reductions in emissions Overview

Exceeded the electrification target for the year by connections Spent R 494m on ongoing skills development and training Eskom group procured goods and services to the value of R5.5bn from black economic empowered enterprises Overview

The group continues to contribute to the fight against HIV/AIDS with other corporates  Paid to date R 53m to the development of a vaccine  Committed an additional R15m per annum for the next five years Focused on continued education and awareness programmes with special focus on voluntary counselling and testing Treats HIV/AIDS as a focus area Overview

ESKOM FINANCIAL PLAN Section D

Salient ratios of financial plan Debt: equity Historic ROA11.1%12.4 % 13.0%14.1 % 14.2 % Inflation adjusted ROA 1.6%2.6%3.2%3.9%4.3% Return on equity 9.2%11.2 % 11.5%12.7 % 12.6 %

Income statement Rand Million Revenue Primary energy(7 122)(7 691)(8 387)(9 450)(10 213) Operating costs(11 775)(12 370)(12 867)(13 510)(14 245) Depreciation(3 896)(4 413)(5 009)(5 426)(6 112) Operating income Interest(2 134)(2 222)(2 328)(2 251)(2 229) Profit before tax

Significant investment required into the future Generation Transmission Distribution Other Total The above figures do not include construction of new power stations Total capital from 2003 – 2007 = R46.3bn 2002 RandsR’millions

Summary of salient points

ESKOM BUDGET 2003 Section E

ESKOM Holdings Ltd 2003 BUDGET

Summary of salient points

Profit before tax and fair value

ESKOM IncomeStatement Budget 2003 ENTERPRISES

Summary

The budget indicates that the year ahead will be more difficult than the one that has passed Consolidation of the businesses will be taking place Concluding remarks

E SKOM Thank you.