1. 1 FINANCIAL ANALYSIS OF TRANSNET FINANCIAL RESULTS 31 MARCH 2005 Presented by Nomzamo Radebe ASSETS & LIABILITY MANAGEMENT NATIONAL TREASURY 07-09-2005

2. 2 BACKGROUND Appointment of a new Group Chief Executive & Board of Directors in 2004 Announced the implementation of a 4-point turnaround strategy set to improve financial performance and will be implemented over 5 years Released and announced Annual Financial results for year ending 31/03/05 on 4 July 2005 The 4-point turnaround strategy adopted by Transnet has returned it to profitability during year ending 31 March 2005 after having a R6.3bil loss in 2004

3. 3 HIGHLIGHTS FINANCIAL RESULTS The highlights of the financial results for Transnet group are as follows: 2005 R’mil 2004 R’mil % Change Turnover46 25943 6376.0 Profit from operations before net finance costs and impairments 5 9714 40835.5 Profit for year after taxation6 527(6 415)>100 Capital and Reserves16 9599 91771.0 Cash flow from operating activities before cash effects of derivate transaction 7 5364 95252.2 Operating margin (%)12.90.4428 Gearing67%83%16

4. 4 CONSOLIDATED INCOME STATEMENT (for year-end 31 March 2005)

5. 5 ANALYSIS: INCOME STATEMENT Turnover increased by 6%; from R43 637mil(2004) to R46 259mil(2005). This is due to good performance of core business units namely: – RAIL Spoornet Transwerk –PORTS National Ports Authority South African Ports Operation –PIPELINESPetronet –AVIATIONSAA

6. 6 ANALYSIS: INCOME STATEMENT (CONT) SEGMENT TURNOVER CONTRIBUTION IN 2004/2005

7. 7 SEGMENT CONTRIBUTION TO OPERATING PROFIT ANALYSIS: INCOME STATEMENT (CONT)

8. 8 SEGMENT CONTRIBUTION TO PROFIT/(LOSS) BEFORE TAX

9. 9 ANALYSIS: INCOME STATEMENT (CONT) Improvement in operating margin in 2005 to 12.9% (2004: 0.44%) Formula:Operating profit Turnover Improvement in Net profit margin in 2005 to 14.7% (2004: negative 14.5%) Formula : Net profit Turnover

10. 10 CONSOLIDATED BALANCE SHEET (As at 31 March 2005)

11. 11 STATEMENT OF CHANGES IN EQUITY (for the year ended 31 March 2005 ) ATTRIBUTABLE TO EQUITY HOLDER Issued Capital Revalua -tion reserve s Foreign currency translation reserves Actuarial gains and losses Other Accumu- lated profit/ (loss) Total (R’Mil) BALANCES AT 1 APRIL 200314 7104 9691-(301)(1 862)17 517 Total recognized income & expenditure -499(81)9491 517(10 595)(7 711) Transfer (to)/from accumulated loss --(5)--5- BALANCES AT 31 MARCH 200414 7105 468(85)9491 216(12 452)9 806 Total recognized income & expenditure -1 0793(947)(53)6 9837 065 BALANCES AT 31 MARCH 200514 7106 547(82)21 163(5 469)16 871

12. 12 ANALYSIS: BALANCE SHEET Return on average total assets managed has improved from to 9.3% in 2005 (2004:-9%). This indicates an improved efficiency in asset utilisation Formula: Net income/(loss) for the year Average assets Capital and reserves increased by 71% Gearing ratio improved to 67% in 2005 (2004:83%) Formula: Debt Debt+ equity Target benchmark for gearing ratio for Transnet is 50- 55%

13. 13 ANALYSIS: BALANCE SHEET Return on equity improved in 2005 to 38.7% (2004: negative 65.4%) Formula :Net income after tax Shareholder’s interest Slight improvement in solvency ratio in 2005 at 1.3 (2004:1.16) Formula: Total assets Total liabilities Liquidity ratio in 2005 is 0.7(2004:0.51), which is below the norm of 2 Acid test ratio in 2005 is 0.62 (2004:0.46), which is below norm of 1

14. 14 ABRIDGED CONSOLIDATED CASHFLOW STATEMENT (For the year ending 31 March 2005)

15. 15 SEGMENT CONTRIBUTION TO CAPEX SPEND ANALYSIS: CASHFLOW STATEMENT (cont)

16. 16 The positive financial results indicate the positive effects of the 4 point turn-around strategy. The success of this strategy will be measured by the sustainability of improved financial results over a long term. Pleasing results, but major challenges going forward. Capex programme of R40.8 billion to be rolled out and funded over the next five years. FINAL COMMENTS

17. 17 THANK YOU