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REVIEW OF PETROLEUM AND LIQUID FUELS CHARTER 2 November 2000 – August 2010

REVIEW OF PETROLEUM AND LIQUID FUELS CHARTER 2 November 2000 – August 2010. Agenda. Introductions Supportive Culture Ownership and Control Employment Equity Capacity Building Procurement Enterprise Development Socio-Economic Development (CSI) Conclusion. 1.

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REVIEW OF PETROLEUM AND LIQUID FUELS CHARTER 2 November 2000 – August 2010

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  1. REVIEW OF PETROLEUM AND LIQUID FUELS CHARTER 2 November 2000 – August 2010

  2. Agenda • Introductions • Supportive Culture • Ownership and Control • Employment Equity • Capacity Building • Procurement • Enterprise Development • Socio-Economic Development (CSI) • Conclusion 1

  3. Introductions • Who is in attendance from BP? • Sipho Maseko Chief Executive – BP • Richard Fienberg Chief Financial Officer – BP • Vuyi Raseroka Human Resources Director – BP • Joe Mahlo Head of External Affairs and Communications – BP • Tshidi Madima Executive Director Investments - Mineworkers Investment Company • Sizwe Mncwango Managing Director - Masana Petroleum Corporation 2

  4. We started our transformation journey by cultivating a Supportive Culture • Black people well represented on the board at 48.75% • Black executive directors amount to 20% • Black top management amounts to 50% • Board Transformation Committee All statistics using the adjusted recognition for gender 3

  5. BEE partnership meets the intent and spirit of the Charter • How is MIC/WDB’s equity investment and joint venture in BPSA structured? • 25% voting rights in hands of black people • Oversight and challenge • Transformation committee • Exposure across the entire value chain • Sells BP and Castrol branded products • BPSA will not compete with Masana and remains an equity partner at all times • Masana majority BEE owned & operated • Regular cash flow with guaranteed minimum returns & upside linked to BPSA performance & MIC/WDB participation BPSA (Pty) Ltd BP 75% MIC 17.5% WDB 7.5% Manufacturing (Refining), Supply, Trading Commercial & Industrial Retail Lubes 50% SAPREF & Blendcor Masana Petroleum Solutions Masana Mgt & Staff 20% BP 45% MIC 24.5% WDB 10.5% 4

  6. Employment Equity & Capacity Building Africans in leadership positions increased from 23% to 51% and females from 8% to 18% • Most senior positions in BP South Africa 5

  7. Employment Equity & Capacity Building:A transformed racial profile

  8. Employment Equity & Capacity BuildingAmbitious plans to redress gender imbalance

  9. Procurement: our interventions are bearing fruit Procurement from BEE compliant businesses increased by a compound 33% Steps Taken In Support of BEE Procurement Transformation Committee set up headed by BEE Partners – 2001 Supplier Diversity Manager role created – 2001 BEE Procurement Policy formulated – 2002 BEE Procurement targets set for each area of business – 2003 Appointed Bogosi Consulting to assist suppliers become BEE compliant and to rate them – 2005 BEE database shared with SASDA

  10. Enterprise Development: Role of BP SA in sustainability of Masana • Funding structure of Masana – R265m • Shareholders loans – BP SA support at R37m; BEE partners at R30m • Raising of RMB loans plus guarantees of approximately R200m • Product Supply to Masana • BP SA supply product at a discount which is worth approximately R20m/annum • Credit terms of 30D from statement translate to working capital of up to ~R1bn • Logistics infrastructure and secondary transport • Storage and handling at cost to Masana; access to entire BP SA depot network • Secondary transport – BP fleet delivers to Masana customers nationally • All of Masana’s on-road transport customers have unlimited access to the BP SA retail network • Access to both Local and Global expertise • HSSE programmes; Technology (Fuels & Transaction); Strategic Co-operation

  11. Socio- Economic Development • Over 1.5% net income spent on various community upliftment initiatives • Objective: • Monetary and non-monetary contributions with the specific objective of facilitating sustainable • access to the economy: • CSI Strategy • Main focus is education on the following themes: • Business leadership & technical development skills • e.g. Maths, Science & Technology Program in collaboration with Wits • HIV/AIDS prevention (e.g. Soul City) • Road Safety (e.g. Arrive Alive and High School Debating Competition) • Environment & Energy (Sea birds rehabilitation through SANCCOB) 10

  12. In summary: BP made significant progress…but there remains more to do • The BP leadership owns the transformation agenda • The BP BEE partnership with MIC/WDB benefits a broad base of stakeholders • The racial profile of the employee population now better approximates the communities in which we operate • Our procurement interventions are yielding positive results • We have successful Enterprise Development initiatives • And we continue to invest in Socio-Economic development initiatives

  13. Review of Petroleum and liquid fuels Charter Thank You 12

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