1. Global Power Company of the Year 2001 Proudly South African Minerals and Energy Portfolio Committee 19 March 2003

2. ESKOM HOLDINGS LIMITED Global Power Company of the Year 2001

3. Content Section AWho are we Section BLong-term trends Section C Business performance 2002 Section D Financial plan Section E Budget 2003

4. ESKOM Who are we Section A

5. Eskom Strategic Intent Eskom will be the pre-eminent African energy and related services business of global stature. Values - Integrity- Excellence - Innovation- Customer satisfaction

6. Who are we E SKOM R EGULATED Generation Transmission Distribution E SKOM NON- R EGULATED Engineering Power business operations Primary Energy Telecoms and Information Technology Eskom

7. General features Wholly State-owned Is the ninth largest electricity utility in the world by sales Separate legal entity under Companies Act (previously Electricity Act and Eskom Act) Managed on business principles Is financed by net financial market liabilities & investments as well as reserves Supplies approximately 95% of electricity in South Africa and 50% in Africa Electricity sales in 2002 were 187 957 GWh Internationally, among the lowest cost electricity providers

8. Industrial electricity prices Supplied by NUS Consulting Group’s International Electricity Report April 2002

9. Sales (GWh) Source: Data Monitor UK, 2001

10. General features Generation Operates 24 power stations with a nominal capacity of 42 011 MW Operates the largest dry cooling power station in the world Technical performance at world class standards Satisfied a peak demand of 31 621 MW this year

11. General features Transmission Supports the development of a southern African transmission grid to encourage co-operation and accelerate growth in the region Has 26 510 km of transmission lines covering the whole country.

12. Transmission Windhoek Gaborone Pretoria Johannesburg Cape Town Maputo Mbabane South Africa Swaziland Lesotho Namibia Botswana Zimbabwe H H H H P H H T T ET T P N

13. South African grid superimposed on Europe

14. General features Distribution Has 298 500 km of distribution and reticulation lines Satisfies the electricity needs of 3 417 652 customers Has electrified 2,8 million homes since 1991

15. General features Eskom Enterprises Is the non-regulated subsidiary Is the vehicle for expansion into Africa and beyond. Presence in Europe, Asia and a substantial presence in Africa

16. ESKOM Long-term trends Section B

17. Electrification CUMULATIVE NUMBER OF HOMES ELECTRIFIED 2.8 million homes electrified 211 628

18. Black economic empowerment R’m Spent R13.3bn over a five year period Spent R197m with women empowered enterprises in 2002

19. Employment equity (MANAGERIAL AND SUPERVISORY CATEGORIES) % 54.6 5.2

20. Gender equity (MANAGERIAL AND SUPERVISORY CATEGORIES) % 24.5 10.4

21. Real price decrease Tariff increase deflated by average consumer price index Base = 100 in 1990 Benefit to customer in excess of R72.6 billion

22. ESKOM BUSINESS PERFORMANCE 2002 Section C

23. Summary of salient points

24. Overview Total productivity was positive to the extent of R382m or 1.6% First dividend of R549m paid

25. Maintained world class technical performance eg. UAGS better than international best quartile Sustained good environmental performance with further reductions in emissions Overview

26. Exceeded the electrification target for the year by 6 257 connections Spent R 494m on ongoing skills development and training Eskom group procured goods and services to the value of R5.5bn from black economic empowered enterprises Overview

27. The group continues to contribute to the fight against HIV/AIDS with other corporates  Paid to date R 53m to the development of a vaccine  Committed an additional R15m per annum for the next five years Focused on continued education and awareness programmes with special focus on voluntary counselling and testing Treats HIV/AIDS as a focus area Overview

28. ESKOM FINANCIAL PLAN 2003-2007 Section D

29. Salient ratios of financial plan 20032004200520062007 Debt: equity0.310.300.210.140.10 Historic ROA11.1%12.4 % 13.0%14.1 % 14.2 % Inflation adjusted ROA 1.6%2.6%3.2%3.9%4.3% Return on equity 9.2%11.2 % 11.5%12.7 % 12.6 %

30. Income statement Rand Million20032004200520062007 Revenue30 56134 16337 05040 98444 222 Primary energy(7 122)(7 691)(8 387)(9 450)(10 213) Operating costs(11 775)(12 370)(12 867)(13 510)(14 245) Depreciation(3 896)(4 413)(5 009)(5 426)(6 112) Operating income7 7679 68910 78712 59813 652 Interest(2 134)(2 222)(2 328)(2 251)(2 229) Profit before tax5 6337 4678 46010 34711 423

31. Significant investment required into the future 20032004200520062007 Generation2 5563 2053 1153 8094 645 Transmission1 7343 670796738688 Distribution2 4322 3732 3072 6452 912 Other2 7252 9433 1184 4354 342 Total9 44712 1919 33611 62712 587 The above figures do not include construction of new power stations Total capital from 2003 – 2007 = R46.3bn 2002 RandsR’millions

32. Summary of salient points

33. ESKOM BUDGET 2003 Section E

34. ESKOM Holdings Ltd 2003 BUDGET

35. Summary of salient points

36. Profit before tax and fair value

37. ESKOM IncomeStatement Budget 2003 ENTERPRISES

38. Summary - 2003

39. The budget indicates that the year ahead will be more difficult than the one that has passed Consolidation of the businesses will be taking place Concluding remarks

40. E SKOM Thank you.