1. Driver Scoring Model Malcolm Narasoo 07 August 2013 1

2. Introduction Telkom in collaboration with Procurement Services and Debis fleet management have embarked on a project that seeks to reduce Telkom’s carbon footprint in line with international norms and Telkom’s cost of running and maintaining the fleet vehicles. This project has been termed the driver scoring model/project. The VTMS will be configured to measure and report on each and every driver / fleet user’s driving behaviour within the specified / set parameters and each driver will be scored on a monthly basis. Currently Telkom incurs astronomical costs as a result of over speeding, harsh braking, harsh acceleration, over- revving, excessive idling and out-of-green band driving. Once implemented, this initiative will result in cost reduction to Telkom and its Service Provider. In addition this will improve driver safety as a result of IOD related to motor vehicle accidents. 2

3. Background A team comprising of representatives from Networks and Wholesale, Procurement Services and Debis set out to test and define the parameters within the various categories mentioned above. Physical testing of the vehicles parameter settings on VTMS revealed that the current parameter settings were providing negative results and perpetuating incorrect driving behaviour. OEM Green-Band driving parameters settings were configured on 120 Telkom operational vehicles in the regions. The team then monitored these 120 vehicles and collected data for the purpose of analysis. The team then conducted further test on vehicles in order to identify more realistic parameters that would perpetuate good driver behaviour. 3

4. Background (cont.) Numerous tests were conducted and once the team was satisfied with the identified parameters, it was decided to download the settings onto the VTMS for the entire fleet. Drivers will now be made aware by means of an alarm signal on the VTMS when they are exceeding the parameters (alarm is similar to the alarm that drivers are familiar with when exceeding the speed limit of 120km/h). We are already observing positive results such as fuel consumption improvement where drivers are staying within the set parameters, hence improving the individual driver score. 4

5. Feedback A briefing document was presented to the social partners at the regional Company Forum on the 30/08/2012 by the project team. At this session the following was decided: The unions are in full support of the project They however objected to the briefing going out prior to consultation with them, albeit that the briefing was not binding on the actual drivers’ scoring, but merely a sensitisation process Their request was that we retract the briefing and present at the next company forum, or form a regional task team to discuss the way forward In conjunction with the project team and ER (Randburg) we’ve decided to retract the briefing and meet with the regional reps to discuss the way forward 5

6. Feedback (cont.) Feedback was presented at the Company Forum, and the decision was that the project be piloted in the North Zone. The new task team, includes representatives from the various recognised Unions. The team convened, and the following next steps unfolded:  The Social Partners embarked on a road show, in order to brief members – this has been finalised.  Two revised briefing documents were registered, in order to sensitise operations around the Driver Scoring Model, and Driver Scoring Reporting – M4 to OP1.  Monthly reports pertaining to individual driver scores, will now be distributed, in order for Ops Managers to engage fleet users, with a view to improve driver scores.  The Task Team will meet this week and, based on the feedback from the Company Forum, will decide on a date for implementation nationally. 6

7. Driver scoring – performance vs. company average 7

8. Driver scoring per service organization 8