1. Black Economic Empowerment
Portfolio Committee
September 2002

2. Table of Contents Introduction BEE Approach Rationale
Engen’s BEE Vision
Engen’s BEE Mission
Structure

3. Table of Contents Areas of Focus/Strategy Challenges Conclusion
Shareholding
Employees
Retail Dealerships
Business Partners – SDCO’s
Suppliers – Procurement
Corporate Social Investment
Challenges
Conclusion

4. BEE Approach
It is a process (and not an event) by which Engen proactively and deliberately creates profitable and sustainable business opportunities, to a large section of the South African population, who were previously disadvantaged/deprived.

5. Rationale
To redress the economic exclusion and marginalising of the majority of South Africans, and through that, contribute in the creation of a more equitable, sustainable and stronger economy.
Value Creation

6. Engen’s BEE Vision
A value creating company that in Employee make-up and business operations both internally and externally, reflects the demographic of the markets in which we operate

7. Engen’s BEE Mission
To contribute to the development and growth of our BEE partners through the awarding of meaningful opportunities to Historically Disadvantaged South African’s (HDSA) to facilitate the sustainability of their business as well as expand their contribution to the South African Economy.

8. Structure Who is responsible? CEO – driven process
Management have targets incorporated on their performance contracts
Dedicated department established in October 2001

9. Areas of Focus / Strategy
Shareholding
Employees
Retail Dealerships
Business Partners
Suppliers
Communities/Social Investments

10. Shareholding 1998 – Petronas – 80% 1998 – WAIH – 20%
2000 – Engen – 45% - Afric Oil

11. Employees
EE Vision:
“Engen will be recognised as the oil industry leader, by 2004, having achieved or exceeded a profile at all employee levels and occupational categories which is 50% that of national or regional demographics of the economically active population in terms of race, gender and disability.”

12. Employees

13. Actual vs Target June 2002
Female Target 2004 = 22%
Charter

14. Retail Dealerships
Charter

15. Retail Dealerships Target as per Charter 25% by 2010
2000 Engen target 40% in 2004
2003 = 34%
On course to exceed our target

16. Business Partners - SDCO’s
Target as per Charter 25%
22 – Outlets
2 x 100%
1 x 50%
1 x 25%
Our target is minimum 30% equity in each outlet by 2004
Conditional Renewal of Contracts

17. Suppliers - Procurement

18. Suppliers - Procurement
Our Procurement is relationship and capacity building
Encourage partnerships e.g. Maziya at the Refinery, mentorship programmes
Set-up operations e.g. Plant ’n Idea
Influence current Suppliers e.g. Rheem/Retail Service Construction

19. Suppliers - Procurement
SMME Training
Lujeze Security
Mondli Trucking and Waste
Bonganjalo Scrap
Gedeza Cleaning Services
Internal Strategy of set asides

20. Corporate Social Investments
Education
Micro Science Project
Professional Teacher Development Programme (PDP)
Collaborative Education with South Africans (CEWSA)
Job Creation
Afrikatourism: 29 routes covering almost 9000km; account for 4031 direct full-time jobs in season and 1933 part-time jobs

21. Corporate Social Investments
Peace & Security
Africa Peace Award
National Sea Rescue Institute (NSRI)
Community Policing Forums
Arrive Alive
Sports Development
Athletics Development
Basketball
Motorsport Development

22. Challenges Availability of Capital Fronting
Heavy concentration on a few areas of business
Skills development
Proposed Pricing Changes (IBLC)

23. Conclusion
At Engen, we recognise that BEE is the agent for the creation of wealth and an engine for change
Implementation is complex it requires, commitment, passion and skilful adaptation to change
We recognise that there is a need to continuously communicate positively to reinforce the message

24. Conclusion
Endeavor to meet all strategic targets that are agreed to, from time to time
We continuously monitor and track the performance of BEE targets
We reaffirm our commitment to the cause of BEE we will meet and exceed the targets as agreed on the Charter

25. Thank You