“ For people going places” Exel Petroleum BEE PRESENTATION TO PPC MAURICE RADEBE MANAGING...

“For people going places”

Exel PetroleumExel Petroleum

BEE PRESENTATION TO PPC

MAURICE RADEBE

MANAGING DIRECTOR

10 September 2002


OVERVIEW OF PRESENTATIONOVERVIEW OF PRESENTATION

History & Track Record

Exel – a True BEE Oil Company

Ownership

Control

Managememt

Transfer of skills

Social Investment

Strategic Partner

Conclusion


HISTORY & TRACK RECORDHISTORY & TRACK RECORD

Wholly South African owned, black economic empowerment oil

company established in 1997.

The main business of the company consists of marketing a full

range of petroleum products throughout Southern Africa.

Impressive track record since 1997

• strong brand presence in the market. Total market share has

increased to 3.76% by 2001

• Present market share is 3% for petrol and 7% for diesel

• Turnover reached the R1.9 billion mark during the year 2001

• Projected turnover for 2002 will be R 2.8 billion

Successful, Growing CompanySuccessful, Growing Company


Major customers consisting of Government, Para-statals and large commercial enterprises, include Transnet, South African Police Services, Local Municipalities, Eskom, Imperial Bulk Services, Sasol Mining, Sonop Delwerye, Sun Couriers etc.

Exel currently boasts a countrywide network of 134 retail sites including rosters

Service Station sites have standard offering of C-store, fast food and allied retail offerings to suit the local market

HISTORY & TRACK RECORDHISTORY & TRACK RECORD

Strong Company with Proven Track RecordStrong Company with Proven Track Record


-22

478

978

1478

1978

2478

2978

Rm

Type Actual Actual Actual Actual Actual YTD Forecast

R Million 71.47 496.78 911.25 1,522.86 1,873.90 1,233.95 2,792.78

1997 1998 1999 2000 2001 '30 Jun 02 '31 Dec 02

TURNOVER (Incl Levies)TURNOVER (Incl Levies)

Outstanding Progressive GrowthOutstanding Progressive Growth


EXEL – BEE COMPANYEXEL – BEE COMPANY

Exel is a TRUE black empowerment company

CONTROL

Ability to exercise legal rights associated with ownership

Majority shareholding

Control of the Board

MANAGEMENT

Black management cadre running the businesses

Responsible for day to day running of operations

SKILLS TRANSFER

Entrepreneurial/ Innovative thinking

Capacity Transfer Skill Transfer Employee training

OWNERSHIP

77,5% Ownership of Exel

Includes Asset ownership

Made Possible by VISION and Made Possible by VISION and COMMITMENT of our Strategic Partner COMMITMENT of our Strategic Partner

SASOL OILSASOL OIL

SOCIAL INVESTMENT

Affirmative Procurement

Community Involvement/ upliftment

Black Economic Empowerment


OWNERSHIP - ShareholdingOWNERSHIP - Shareholding

S O U T H A F R IC A N G R O U P

HDSA G RO UP

Exel M anagement & Staff1 0 .0%

S ta ff com m itm en t &In vo lv em ent

Autow orkers Pension Fund8 .0%

R e pre se n tin g P um p A tten da n ts

Autow orkers Provident Fund5 .0%

R e pre se n tin g P um p A tten da n ts

South African Black W om en IH3 ,5%

R e pre sen ting W o m e n s G rou ps

Nozala T rust & Nozala Resouces9 .5 .0%

R e pre sen ting W o m e n s G rou ps

Balance3 ,5

T o be p la ce d w ith H D S A G ro up

SIZANANI TRUST3 9 .0%

B roa d B a se d G rou ps

M pho Jessica Trust7 .2%

Kulisile Investm ent (P ty) Ltd3 .6%

M anyano Investment (P ty) Ltd3 .6%

Buyisa T rust7 .2%

M arquis Trading (Pty) Ltd7 .2%

Bophirim ile Investm ents (Pty) Ltd7 .2%

PO W ER LIB G RO UP3 6 .0%

In d iv idua ls

NABFRA INVEST M ENT HOLDINGS1 .0%

B lack S e rv ice S ta tio n O pe ra to rs

ESTAT E LATE SG NYATI1 .0%

UNALIGNED PART IES2 ,0%

SASO L O IL

NALEDI PET RO LEUM INDUST RIES2 2 .5%

EXEL PET ROLEUM1 0 0% o w n e d by

NALEDI PET RO LEUM HOLDINGS


OWNERSHIPOWNERSHIP

Established by Established by SasolSasol to facilitate Empowerment to facilitate Empowerment

All share capital is raised by the shareholders who are

personally responsible for the financing

SIZANANI TRUST• At inception in 1997, 77,5% of shares were held by a broad

base of shareholders all being HDSA’s

• In 2000, many elected to sell their shares, earning 14 times their

initial investment.

• The Sizanani Trust was established by Sasol as a vehicle to

temporarily house the shares, with the express intent to place all

of these shares with HDSA’s


CONTROL - DirectorsCONTROL - Directors

66,6% of Directors are HDSA

Non-Executive board – sits every two months

Sub-committees of the board meet to

recommend and advise on key issues for

submission to the board:

• Strategy Committee

• Audit Committee

• Remuneration CommitteeControl and Corporate GovernanceControl and Corporate Governance


77% of Management are HDSA Well qualified top management with more

than 70 years industry experience Experienced executive committee Flat structure enables quick

communication to all staff and quick decision making to support customers

Innovative culture that emphasises learning and leadership development

MANAGEMENTMANAGEMENT

Live Values - Total TransparencyLive Values - Total Transparency


White Male27%

White Female18% Black

55%

EMPLOYMENT EQUITY – All StaffEMPLOYMENT EQUITY – All Staff

73% HDSA’s73% HDSA’s


Male53% Female

47%

GENDERGENDER EQUALITY – All StaffEQUALITY – All Staff

Striving to Improve with New AppointmentsStriving to Improve with New Appointments


Black33%

White Female34%

White Male33%

SENIOR MANAGEMENTSENIOR MANAGEMENT

77% HDSA’s77% HDSA’s


SKILLS TRANSFERSKILLS TRANSFER

20% of staff are studying through company assistance

Secondment of staff with strategic partner Flat structure and small staff complement

makes for easy identification of talent Mentorship and acceleration programme

for high potential staff Quarterly staff assessment and

performance appraisals address learning requirements


SOCIAL INVESTMENTSOCIAL INVESTMENT

Affirmative Procurement:• Tender committee to monitor and facilitate process• Procurement Policy structured to ensure BEE

companies have preference• Evaluation process provides ability to pay up to

10% higher for BEE suppliers• Technical buyer position created to promote &

assess new suppliers• 2001 spend (excluding product) – 54%, • 2004 target – 75%


SOCIAL INVESTMENTSOCIAL INVESTMENT

Community Involvement• Appointed General Manager to drive programmes• Policy adopted to direct key areas of expenditure

– Development & training– Skills enhancement – Youth– Environment

• Budget 2% of Net Profits before tax for CSI expenditure • Hero concept – Retail franchisees involvement with

community encouraged• Exel Impact – Identify projects in conjunction with retail

franchisees• ExelYes! – News sheet for pump attendants• Staff encouraged to be personally involved with

community programmes


ADDITIONAL INFORMATIONADDITIONAL INFORMATION

RETAIL SITES

• Programme to fund HDSA franchisees• Strict code of conduct for franchisees relationship with

pump attendants• Dedicated trainers visiting sites to ensure continued

training for pump attendants• Programme in place to ensure at least two attendants

become franchisees by 2005

No. % HDSA % Black No. PA’s

Prime Sites 89 48 37 1700

Roster Sites 50 13 10 500


ADDITIONAL INFORMATIONADDITIONAL INFORMATION

No Depots – rely on partnerships and accomodation agreements

Transport – No Bulk Vehicles – most deliveries handled by Sasol• Sasol & rail 66 %• Customer Collection 24 %• BEE 6%• Other 4%

Commercial – piloting BEE reseller programme with view to roll out to remainer of country


STRATEGIC PARTNERSTRATEGIC PARTNER

Key strategic partner is Sasol Oil 22,5% Shareholding in Exel Board Representation Strategic Partnership offering

• Financial Support• Technical Support• Transfer of Skills

SuccessSuccess DEPENDSDEPENDS on QUALITYQUALITY of Relationship Between Partner & BEE Operator



Financial • Warehousing of share sale through

Sizanani Trust • Surplus product offer at discounted rates• Cession of certain Fuel Oil business• Loan for property development (Exel

company owned sites)• Property Development - Sites leased to

Exel for 10 year period

All at Market RatesAll at Market Rates



Technical• Supply of product in In-land areas• Distribution, including scheduling, logistics

and delivery • Lubricants – supply and technical support• Technical services

– Pump maintenance,– Environmental compliance– Capital Installations (Pump & Tanks)

Arms Length, Market RelatedArms Length, Market Related Commercial AgreementsCommercial Agreements



Skills transfer• Exel staff invited to Sasol training programmes (eg

Executive Development Programme, Accelerated Leadership Development Programme)

• Consultancy agreement (allows Exel management to draw on Sasol expertise at agreed preferential rates)

• Sasol employees seconded to Exel (currently 6)

• Exel employees seconded to Sasol (currently 2)

Capacity Capacity BuildingBuilding is Key to Success is Key to Success


CONCLUSIONCONCLUSION

Proven track record in the industry Financially strong High emphasis on corporate governance Strong management team, flat structures and quick decision

making in place Vision 2005 firmly in place and actively pursued Exel enjoys a high profile in the industry and the market Exel is the strongest black oil company in SA The above is due to the BEE dream and passion of our

strategic partner, Sasol Oil

Exel IS the leading example of Exel IS the leading example of successful Black Empowermentsuccessful Black Empowerment


ThankThank youyou

ExelExel ‘‘for people going places’for people going places’

“ For people going places” Exel Petroleum BEE PRESENTATION TO PPC MAURICE RADEBE MANAGING...

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