1. MEDIA PRESENTATION September 19 2007 BY MS MARIA RAMOS

2. AGENDA
STRATEGY REVIEW
PERFORMANCE RVIEW
CONCLUSION AND WAY FORWARD

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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 vs )
Procurement savings of R500 million per annum and reduction in safety
incidents (R200 million) 17

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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
***
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
R million
R 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

29. 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 (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

30. 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

31. 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

32. THE WAY FORWARD

33. 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

34. 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:

35. 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

36. 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

37. 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

38. THE END THANK YOU