1. Presentation to Portfolio Committee on Agriculture, Forestry & Fisheries Embracing Change 14 June 2011

2. Introducing the Oceana Group Limited (OGL) Oceana Group... 1....is the leading and only JSE-listed fishing company in South Africa. 2....is an empowered Level 3 BEE contributor that supports the government’s growth and transformation objectives. 3....is a responsible and involved corporate citizen that operates in strict accordance with the laws of the country and embraces sustainable business practices. 4....is a great company to work for with fair and equitable employment policies and a commitment to improving the well- being of its employees OGL has been verified as a black-owned level 3 BBBEE contributor

3. BROAD-BASEDNARROW-BASED 1.Measures underlying economic interest of black ownership Measures percentage black ownership only not actual economic benefits; benefits only a few with access to capital – elitist 2.Eliminates fronting through clear definitions, principles and processes to define measurement High level of fronting – no clear implementation guidelines/ measures 3.Broad-based empowerment encouraged through procurement, enterprise development and CSI, which, if channelled correctly, will have an increasingly positive impact on the welfare of fishing communities No broad-based benefits for emerging businesses or fishing communities 4.Supports the New Growth Path initiative and government job creation targets Does not support government policy Key Challenge: Agreeing on a uniform measurement of Transformation

4. Broad-based: 1.Ownership 2.Management & Control 3.Employment Equity 4.Skills Development 5.Preferential Procurement 6.Enterprise Development 7.Socio-Economic Development OGL has been verified as a black-owned level 3 BBBEE contributor CONSISTENT ALL SECTORS “... the Council (Government BBBEE Advisory Council) called for the CONSISTENT implementation of broad-based BEE in ALL SECTORS of the economy, to ensure that the policy touches the lives of more people," SA Presidency 1 April 2011 Key Challenge: Agreeing on a uniform measurement of Transformation

5. Narrow-based: 1.Ownership 2.Management & Control TRANSFERRING CORPORATE ASSETS FROM WHITE TO BLACK “To define BEE too narrowly limits it to a set of transactions TRANSFERRING CORPORATE ASSETS FROM WHITE TO BLACK ownership” – Dept. of Trade and Industry’s BEE Strategy doc. OGL has been verified as a black-owned level 3 BBBEE contributor Key Challenge: Agreeing on a uniform measurement of Transformation

6. Current Status of Transformation of the Fishing Industry Status currently known by DAFF  Resolve Group appointed to conduct a detailed Performance Review across all sectors of the industry in 2010  All rights holders had to submit a completed electronic Request for Information (“RFI”) questionnaire by 30 April ’10  Results not released yet OGL has been verified as a black-owned level 3 BBBEE contributor

7. Transformation in Oceana Group in 2005 At the end of 2005, long-term fishing rights were allocated for varying periods of between 8 and 15 years... OGL has been verified as a black-owned level 3 BBBEE contributor

8. There may have been an expectation that with our rights in place, we would simply have maintained our transformation status and done nothing more... Transformation in Oceana Group after allocation of long-term fishing rights OGL has been verified as a black-owned level 3 BBBEE contributor

9. Instead, we’ve accelerated transformation since long-term rights were allocated. OGL has been verified as a black-owned level 3 BBBEE contributor Transformation in Oceana Group after allocation of long-term fishing rights

10. How has Oceana Transformed? Black Ownership - % 1995 2005 Current 25,1%19,6% 50,5%* OGL has been verified as a black-owned level 3 BBBEE contributor OCEANA GROUP IS NOW A BLACK-OWNED COMPANY *Independently verified by Empowerdex

11. How has Oceana Transformed? Profile of Major Shareholders OGL has been verified as a black-owned level 3 BBBEE contributor OGL ShareholderNo of shares held% of total shareholding No of individual black beneficiaries Khula Trust14,162,79911,9%2,003 Brimstone11,596,7559,7%8,500,181 Tiger Brands44,699,46337,5%10,951 Other48,690,54040,9%n/a Totals119,149,557100,0%8,513,135

12. How has Oceana Transformed? Black Management & Control - % (Board of Directors) 19952005 2010 12,5%40,0% 45,0% % Black Females 0,0% 0,0%18,0%* OGL has been verified as a black-owned level 3 BBBEE contributor *Currently, 27,3%

13. How has Oceana Transformed? Employment Equity - % (black representation) 2005 2010 Senior Management 10,0% 26,0% Middle Management 38,0% 50,0% Junior Management 75,0% 82,0% OGL has been verified as a black-owned level 3 BBBEE contributor

14. How has Oceana Transformed? Skills Development Spend 2006 2010 5yr Cumulative Rand value: all staff R4,1m R7,8m R26,3m Rand value: black staff R3,6m R6,4m R22,0m % of training spend: 87,8% 82,1% 83,7% black staff OGL has been verified as a black-owned level 3 BBBEE contributor

15. How has Oceana Transformed? Procurement spend on BEE companies 2006 2010 5yr Cumulative Rand value R536,1m R827,2m R3,1b % Spend 65,81% 70,3% 62% OGL has been verified as a black-owned level 3 BBBEE contributor

16. How has Oceana Transformed? Enterprise Development Spend 2006 2010 5yr Cumulative Rand value R79,4m R27,3m R207,6m Joint ventures 22 25 n/a Supply agreements 103 72 n/a OGL has been verified as a black-owned level 3 BBBEE contributor

17. How has Oceana Transformed? CSI Spend 2006 2010 5 yr Cumulative Total CSI R3,3m R2,4m R13,4m (SA only) OGL has been verified as a black-owned level 3 BBBEE contributor

18. Further Empowerment Initiatives  An important provider of food security in South Africa and Africa (protein footprint)  535,000 cans of canned fish consumed every day of the year, which equates to an estimated 1,9 million servings per day in SA;  An estimated 1,4 million servings of horse mackerel per day in Africa  Main target market is consumers in the lower Living Standards Measure (LSM) bracket OGL has been verified as a black-owned level 3 BBBEE contributor

19.  An important provider of food security in SA(protein footprint)  Employee Share Scheme  Khula Trust, formed in 2006, owns 14,2m shares in the Oceana Group equating to 11,9% of the shareholding  At current share price, the Accrued Capital Value to employees net of debt equals R343m  Total current employee beneficiaries is 2,003  Average accrued capital value per employee equals R171,000 OGL has been verified as a black-owned level 3 BBBEE contributor Further Empowerment Initiatives

20.  An important provider of food security in SA (protein footprint)  Employee Share Scheme  Provision of housing to employees at a cost of R6m  Lamberts Bay  30 houses  Hout Bay  58 cottages and 24 flats  St Helena Bay / Laingville  45 plots  50 houses OGL has been verified as a black-owned level 3 BBBEE contributor Further Empowerment Initiatives

21.  Food safety (protein footprint)  Employee Share Scheme  Provision of housing  Investment made in respect of “South Africanisation” of Russian vessel, the Desert Diamond  R3,372,924 for training and development  SA crew increased from 32% in 2003 to 66% in 2011. OGL has been verified as a black-owned level 3 BBBEE contributor Further Empowerment Initiatives

22. Transformation of the Oceana Group BBBEE ScorecardMaximum ScoreActual Score Ownership20,00 Management & Control10,006,55 Employment Equity15,008,06 Skills Development15,0010,14 Preferential Procurement20,0018,56 Enterprise Development15,00 Socio-economic Development5,00 TOTAL100,0083,31 OGL has been verified as a black-owned level 3 BBBEE contributor Oceana Group is now... a black-owned Level 3 BBBEE Contributor

23. The Way Forward We would respectfully ask of DAFF, as a precursor to the development of a fishing charter and the setting of any future industry-specific transformation goals, that it: 1.Adopts the BBBEE Codes of Good Practice in ALL policies DAFF’s current approach to assessing transformation -  Is narrow and only measures the percentage black ownership and management and fails to recognise broad-based transformation initiatives  Pre-dates the 2007 change in legislation on B-BBEE  Is contrary to government’s stated strategy, including the New Growth Path 2.Publishes the results of the Performance Review process specific to the CURRENT LEVEL OF BBBEE TRANSFORMATION within the fishing industry OGL has been verified as a black-owned level 3 BBBEE contributor

24. Thank You!