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

2. 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

3. 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%

4. 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%.

5. 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

6. 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

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

8. 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.

9. 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)

10. Enterprise Development
Concluded Reatile-Engen deal
Merger involved Engen’ South African LPG marketing interests. The deal was officially signed in August 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.

11. 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.

12. 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.

13. 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.

14. Thank you