Exel Petroleum

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Exel Petroleum

• BEE PRESENTATION TO PPC
• MAURICE RADEBE
• MANAGING DIRECTOR
• 10 September 2002

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OVERVIEW OF PRESENTATION

• History Track Record
• Exel a True BEE Oil Company
• Ownership
• Control
• Managememt
• Transfer of skills
• Social Investment
• Strategic Partner
• Conclusion

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HISTORY 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 Company
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HISTORY TRACK RECORD

• 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

Strong Company with Proven Track Record
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TURNOVER (Incl Levies)
Outstanding Progressive Growth
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EXEL BEE COMPANY

• Exel is a TRUE black empowerment company

Made Possible by VISION and COMMITMENT of our
Strategic Partner SASOL OIL
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OWNERSHIP - Shareholding
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OWNERSHIP

• 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 HDSAs
• 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
  HDSAs

Established by Sasol to facilitate Empowerment
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CONTROL - 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 Committee

Control and Corporate Governance
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MANAGEMENT

• 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

Live Values - Total Transparency
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EMPLOYMENT EQUITY All Staff
73 HDSAs
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GENDER EQUALITY All Staff
Striving to Improve with New Appointments
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SENIOR MANAGEMENT
77 HDSAs
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SKILLS 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

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SOCIAL 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

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SOCIAL 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

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ADDITIONAL 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. PAs
Prime Sites 89 48 37 1700
Roster Sites 50 13 10 500
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ADDITIONAL 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

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STRATEGIC PARTNER

• Key strategic partner is Sasol Oil
• 22,5 Shareholding in Exel
• Board Representation
• Strategic Partnership offering
• Financial Support
• Technical Support
• Transfer of Skills

Success DEPENDS on QUALITY of Relationship
Between Partner BEE Operator
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STRATEGIC PARTNER

• 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 Rates
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STRATEGIC PARTNER

• 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 Related Commercial
Agreements
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STRATEGIC PARTNER

• 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 Building is Key to Success
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CONCLUSION

• 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 successful Black
Empowerment
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• Thank you
• Exel
• for people going places