1. 1 Presentation on AgriBEE Charter

2. 2 Agenda Achieving Broad-based BEE Ownership Statement 100 Consolidation of Economic Control through Management Statement 200

3. 3 AgriBEE - Ownership Scorecard ELEMENTWeighti ng Indicator Category IndicatorIndicator Weighting TARGET Ownership20%Voting Rights Exercisable voting rights by black people3 pnts30% Exercisable voting rights by black women2 pnts10% Economic Interest Economic interest in the enterprise to which black people are entitled 3 pnts30% Economic interest in the enterprise to which black women are entitled 2 pnts10% Economic interest in the enterprise to which black employees and workers are entitled 2 pnts10% Realisation Points Ownership fulfilment1 pntNo Restrictions Net Equity Interest Achieved accordingly: 10% of the Target (Year 1) 20% of the Target (Year 2) 40% of the Target (Year 3-4) 60% of the Target (Year 5-6) 80% of the Target (Year 7-8) 100% of the Target (Year 9-10) 7 pnts30% Bonus Points Involvement in the ownership of the Enterprise of black new entrants; black Deemed Participants of Broad-Based Ownership Schemes; or black Participants in Co-operatives 3 pntsBonus per each level of 5% Contribution to achieving more than 30% land transfer5 pntsBonus point per each percentage of land transferred above 30%

4. 4 Agenda Achieving Broad-based BEE Ownership Statement 100 Consolidation of Economic Control through Management Statement 200

5. 5 Management Scorecard (Same as the BEE Codes)

6. 6 Structure and Content: Phase 2 Human Resources Elements (Statement 300~400) Procurement, Enterprise development and Residual (Statement 500~900) Additional Statements on Ownership (Statement 102~105) Qualifying Small Enterprises (Statement 1000~1700) Agenda

7. 7 CriteriaWeighting pointsCompliance targets Black people with disabilities employed by the Measured Entity as a percentage of all full-time employees 24% Black people employed by the Measured Entity at Senior Management level as a percentage of employees at Senior Management level 260% Black women employed by the Measured Entity at Senior Management level as a percentage of employees at Senior Management level 230% Black people employed by the Measured Entity at Professionally Qualified, Experienced Specialists and Mid-management level as a percentage of employees at Professionally Qualified, Experienced Specialists and Mid- management level 275% Black women employed by the Measured Entity at Professionally Qualified, Experienced Specialists and Mid-management level as a percentage of employees at Professionally Qualified, Experienced Specialists and Mid- management level 140% Black people employed by the Measured Entity at Skilled Technical and Academically Qualified Workers, Junior Management, Supervisors, Foremen, and Superintendents as a percentage of employees at Skilled Technical and Academically Qualified Workers, Junior Management, Supervisors, Foremen, and Superintendents level 180% Employment Equity Scorecard (Same as BEE Codes)

8. 8 Employment Equity Scorecard Allocation

9. 9 CategorySkills Development ElementWeighting points Compliance Target Skills Development Skills development spend on black employees as a percentage of Leviable Amount. (85% of spend focused on core and critical skills as defined by the relevant SETA). 62% Skills development spend on black women as a percentage of Leviable Amount (85% of spend focused on core and critical skills as defined by the relevant SETA). 20.93% Spend on black employees with disabilities as a percentage of Leviable Amount 10.2% Recognised Training Programmes Number of black employees participating in training programmes that lead to recognised qualifications as percentage of total employees. 25% Number of black women participating in training programmes that lead to recognised qualifications as percentage of total employees 22.5% Number of people who are members of Black Designated Groups participating in training programmes that lead to recognised qualifications as percentage of total employees (The score in this element will be adjusted directly proportionate to the level of absorption of the participants in training programmes in the measured enterprise until a level of 80% absorption is attained) 11% AgriBEE - Skills Development Scorecard

10. 10 Organisational Transformational Index Existence of a comprehensive Black Economic Empowerment strategy and which is being implemented Yes1 Employment of a Skills Development FacilitatorYes1 Existence of a policy on non-discrimination widely published within the Enterprise Yes1 Compliance with all relevant employment related legislationYes1 Implementation of an effective human resource management planYes1 Existence of a program designed to give practical effect to the stated policies and programs Yes1 Bonus Points Support land reform beneficiaries and Black persons to create sustainable business through the transfer of specialized skills in qualifying mentorship programmes Qualifying mentorship programmes as accredited by relevant SETA authority 5 CategorySkills Development ElementWeighting points Compliance Target AgriBEE - Skills Development Scorecard (continues)

11. 11 Direct training costs (which must represent at least 50% of all such spend) Indirect training costs (allowed but is limited) Compliance with the skills development Act is a pre-requisite Registration with the relevant SETA Other Skills Development Considerations

12. 12 Structure and Content: Phase 2 Human Resources Elements (Statement 300~400) Procurement, Enterprise development and Residual (Statement 500~700) Additional Statements on Ownership (Statement 102~105) Qualifying Small Enterprises (Statement 1000~1700) Agenda

13. 13 CriteriaWeighting points Compliance target BEE Procurement Spend from all suppliers based on the BEE Procurement Recognition Levels, QSE Recognition Levels or the Deemed Micro Enterprise Recognition Levels (as the case may be) as a percentage of Total Measured Procurement Spend 1570% BEE Procurement Spend from Qualifying Small Enterprises based on the QSE Recognition Levels as a percentage of Total Measured Procurement Spend 415% BEE Procurement Spend from Exempted Micro Enterprises based on the Deemed Micro Enterprise Recognition Level as a percentage of Total Measured Procurement Spend 15% Preferential Procurement Scorecard (Same as BEE Codes)

14. 14 Cost of Sales Operational Expenditure Capital Expenditure Total Spend TOTAL MEASURED PROCUREMENT SPEND Allowable Exclusions: -Salaries -Third party costs -Loans and Donations -Certain imports -Rates & Taxes, levies -Post retirement funding -Medical aid contributions,etc. -Imports accepted to a maximum of 75%. (25% local content) BEE Spend Non-BEE spend Statement 500 – Preferential Procurement

15. 15 CriteriaWeighting PointsCompliance Target Cumulative contribution to enterprise development as a percentage of Net Profit After Tax measured from the commencement / Inception Date to the date of measurement 102% Bonus Points: Contribution towards increased employment1 Lease of 20% of land or capital assets on a long term basis to black persons 3 Lease longer than 10 years AgriBEE - Enterprise Development Scorecard

16. 16 CriteriaWeighting Points Compliance Target Cumulative rand value of non-recoverable qualifying corporate social investment contributions as a percentage of net profit after tax over five years measured from the commencement date of this statement or the Inception Date until the date of measurement. 6%1.5% Land 1 made available to farm dwellers for the purpose of household use measured from the commencement date of this statement or the Inception Date until the date of measurement 2. (Making land available for farm workers shall not trigger the application of the tenure rules for a period of 10 years. However this provision does not affect the ESTA rights of the affected persons who have lawful claims on the land) 4%10% Bonus point for qualifying residual contributions benefiting black people in rural communities or geographic areas identified by government 1 AgriBEE – Rural Development, Poverty Alleviation and Corporate Social Investment 1 The land that is made available is the land not subject to the Land Tenure Act. 2 Enterprises that have fully contributed to the ownership element of the scorecard have an option of only contributing to the CSI portion of this element which will then have a corresponding 10 weighting points.

17. 17 Structure and Content: Phase 2 Human Resources Elements (Statement 300~400) Procurement, Enterprise development and Residual (Statement 500~700) Additional Statements on Ownership (Statement 102~105) Qualifying Small Enterprises (Statement 1000~1700) Agenda

18. 18 Micro Enterprises Qualifying Small Enterprises (As per Statement 1000) Other Companies (Exceed Revenue or Employee limits) Generic Scorecard, with all seven elements (Statement 000~900) QSEs can elect to implement the entire QSE scorecard (with enhanced recognition) QSE Scorecard, Select five of the seven elements (Statement 1000~1700) All elements weigh 20% Indicators adapted to QSEs Micro Exemption, Automatic Level 4 Recognition Framework for Measuring BEE in QSEs

19. 19 Key PrinciplesDescriptionImplication Qualifying Small Enterprises (Definition) Qualifying small enterprises classified according to the National Small Business Act, based on turnover and employee number The qualification criteria for QSEs differs across sector A table provided for classification of QSEs by turnover and employee number Exemption of Micro Enterprises Micro Enterprises with annual revenue below VAT registration exempted from the Codes AgriBEE – Enterprise with an annual turnover less than R1.5m. (To be finalised once research is concluded) Automatic Level 4 recognition for Micro- Enterprises Companies are not penalized for buying from exempted micro enterprises Application of the QSE Scorecard Allows QSEs to apply the entire QSE scorecard QSE scorecard allows company to elect five out of seven BEE factors for BEE scoring purposes. AgriBEE: (To be finalised once research is concluded) less than R20 million in primary agriculture; less than R30 million in beneficiation of agricultural products; and less than R30 million, service provision to the agricultural sector. QSEs can present a BEE score comprising five out of the seven BEE elements QSEs can also elect to apply entire scorecard (enhanced recognition) QSEs can potentially score 100 points without BEE ownership Bonus Provisions (Enhanced recognition) Different Bonus provision for QSEs where black ownership exceeds 20 points and where QSEs use all seven elements of the scorecard Provide additional recognition for black owned QSEs Encourage B-BBEE initiatives by QSEs Statement 1000 – Framework for QSE’s

20. 20 QSE Identification and Classification Table

21. 21 Ownership and Management for QSEs BEE ElementsCode Ref.WeightingIndicatorsIndicator Weighting Compliance target OwnershipBEE 110020%Exercisable Voting Rights by black people 5%30% Economic Interest in the Enterprise to which Black people are entitled 7%30% Ownership Fulfillment1%No restrictions Net Equity Value7%10% - 100% staggered over a 10 year period Bonus Points: Involvement in the ownership of the Enterprise of: -Black Women and/or -Black Employees/Workers 3%15% Contribution to achieving over 30% land transfer 5%Bonus point per each percentage of land transferred above 30% Management Control (Same as BEE Codes) BEE 120020%Black representation at Owner- Manager level; 20% 25,1% Owner-Manager Representation, Bonus Points: Black Women representation at Owner-Manager 2%10%

22. 22 BEE ElementsCode Ref. WeightingIndicatorsIndicator Weighting Compliance target Employment Equity (Same as BEE Codes) BEE 1300 20%Black representation at Manager- Controller level 6%40% Black women representation at Manager-Controller level 6%20% Black employees as a percentage of total employees 4%70% Black women as a percentage of total employees 4%35% Employment Equity for QSEs

23. 23 BEE ElementsCode Ref. WeightingIndicatorsIndicator Weighting Compliance target Skills DevelopmentBEE 1400 20%Employee enrollment/ involvement in Recognised Training Programmes 5%Yes Skills development spend on black employees in addition to Skills Development Levy (except where the enterprise is exempted from payment of the skills development levy) as a percentage of the Leviable Amount (or as a percentage of total annual payroll, for entities exempted from the skills development levy). 15%1% Bonus Points - Support land reform beneficiaries and Black persons to create sustainable business through the transfer of specialized skills in qualifying mentorship programmes 5%Qualifying mentorship programmes as accredited by relevant SETA authority AgriBEE - Skills Development for QSEs

24. 24 BEE ElementsCode Ref. WeightingIndicatorsIndicator Weighting Compliance target Preferential Procurement (Same as BEE Codes) BEE 1500 20%BEE Procurement Spend from Suppliers based on the BEE Procurement Recognition Levels or Deemed Micro Enterprise Recognition Levels as a percentage of Total Measured Procurement Spend 20%50% Preferential Procurement, Enterprise Development and Residual for QSEs

25. 25 BEE ElementsCode Ref. WeightingIndicatorsIndicator Weighting Compliance target Enterprise Development BEE 1600 20%Enterprise development contributions made by the Qualifying Small Enterprise as a percentage of Net Profit After Tax 20%2% Bonus Points - Lease of 20% land or capital assets on a long term basis to black persons 3%Lease longer than 10 years Rural DevelopmentBEE 1700 20%Qualifying residual contributions made by the QSE measured as a percentage of net profit after tax, made to corporate social investments and/or industry specific contributions measured from the commencement date of this statement or the Inception Date until the date of measurement. 12%2% 1 Land made available to farm workers measured from the commencement date of this statement or the Inception Date until the date of measurement 2. 8%10% AgriBEE - Enterprise Development and Rural Development for QSEs 1 The land that is made available is the land not subject to the Land Tenure Act. 2 Enterprises that have fully complied with the ownership scorecard have an option of only contributing to the CSI portion of this element which will then have a corresponding 10 weighting points.

26. 26 The Road Ahead 20 Dec 2005: Release of First Draft 2 nd Phase 31 March 2006: Deadline for Submissions March/April 2006: Review of Submissions November/December 2006 Promulgation of Phases 1 and 2 May/Sept 2006: Development of Final Draft