1. Seshego Benefit Consulting LEBONE ENGINEERING RETIREMENT FUND CHOICES 26 February 2010

2. SESHEGO BENEFIT CONSULTING WHAT IS BEING MADE AVAILABLE  An explanation letter  A Member Investment Choice (MIC) booklet  Supporting MIC portfolio fact sheets  A member choice form  A presentation on the choices  Illustration software that you can get from Solomon Bokake  A website page with the communication on www.saopenfund.co.za/Lebone.htm www.saopenfund.co.za/Lebone.htm

3. SESHEGO BENEFIT CONSULTING CHOICE ISSUES  Why choice?  Trustees’ role in choice funds  Communication available  Elect single MIC portfolio. Annual choice.

4. SESHEGO BENEFIT CONSULTING FINANCIAL PLANNING  Retirement, Risk & Estate Planning  Retirement - Budget  Set a realistic target  Risk - Who are your dependents  What are your assets  Plugging the gaps  Estate Planning – Get advice, if needed

5. SESHEGO BENEFIT CONSULTING RETIREMENT PLANNING  Defer retirement  Additional contributions  Invest differently  Modern Portfolio Theory  Growth assets are included for long term capital growth

6. SESHEGO BENEFIT CONSULTING FTSE/JSE long-term return 61% 0% -10% 29% -8% 16% 25% 47% 41% 19% -23%

7. SESHEGO BENEFIT CONSULTING Annualised returns over 40-years April 1969 – March 2009 (Gross)

8. SESHEGO BENEFIT CONSULTING INVESTMENT CHOICES  Inflation plus 7%  Inflation plus 5%  Inflation plus 3%  Capital guarantee portfolio  How are you going to invest after retirement?  Default is Inflation plus 5%

9. SESHEGO BENEFIT CONSULTING PORTFOLIO CONSTRUCTION

10. SESHEGO BENEFIT CONSULTING DEATH COVER  3X annual pensionable salary  Disability cover (about 75% of annual salary)  Insurance costs change

11. SESHEGO BENEFIT CONSULTING INVESTMENT NET OF COSTS  By way of example:  Contribution 13,00% e.g. R100,00  Less Group Life 1,02% e.g. R 7,85  Less PHI (disability) 0,74% e.g. R 5,70  Less admin costs (estimate) 0,65% e.g. R 5,00  NETT towards investment 15,41% R 81,45

12. SESHEGO BENEFIT CONSULTING IN SUMMARY  Do a budget to set a retirement target, then put in place a retirement plan  Establish the life cover you need  Get professional help if you need estate planning  Stick to your plan

13. SESHEGO BENEFIT CONSULTING

14. Questions