TOTAL%20SOUTH%20AFRICA%20A%20presentation%20to%20the%20%20Parliamentary%20Portfolio%20Committee%20on%20progress%20made%20since%20signing%20of%20the%20Liquid%20Fuels%20Charter

1
TOTAL SOUTH AFRICAA presentation to the
Parliamentary Portfolio Committee on progress
made since signing of the Liquid Fuels Charter

• Parliament, Cape Town
• 1 September 2006

2
Agenda

• Introduction
• Transformation imperative
• Key elements of the Charter
• Ownership
• Management and Control
• Employment Equity
• Capacity Building
• Supportive Culture
• Affirmative Procurement
• Enterprise Development
• Corporate Social Investment
• Challenges

3
Transformation our imperative 1

• The empowerment we speak of is an inclusive
  process and not an exclusive one. No economy can
  meet its potential if any part of its citizens is
  not fully integrated into all aspects of that
  economy.
• President Thabo Mbeki
• (The State of the Nation Address, 14 February
  2003)

4
Transformation our imperative 2
Transformation is an integrated and coherent
socio-economic process that directly contributes
to the economic transformation of South Africa
and brings about significant increases in the
numbers of black people that manage, own and
control the countrys economy, as well as
significant decreases in income inequality. dti
policy document 2002
5
The Charter drives our mission
6
TOTAL SOUTH AFRICA STRUCTURE
TOSACO
TOTAL OVERSEAS
Remgro
50.1
25
24.9
TOTAL SA
TOTAL
36.36
100.0
NATREF
(Crude oil Refinery)
Namibia
19.0
100.0
TOTAL
SAFOR
Botswana
(Base Oil Refinery)
100.0
30.0
TOTAL
TOSAS
Lesotho
(Bitumen)
100.0
TOTAL COMMERCIAL SERVICES (TCS)
24,9
TOTAL
Swaziland
7
Equity ownership

• Agreement for TOSACO to own 25 equity in Total
  South Africa(TSA) signed in May 2003.
• TOSACO participation in full value chain
  including all TSA subsidiaries e.g. Natref and
  Safor.
• Solid financial model over 10 years
• TOSACO has majority (75.1) ownership in TOTAL
  Commercial Services (TCS)
• TCS is managed by a member of TOSACO
• Following payment of special dividends repayment
  schedule is to be brought forward from 2013 to
  2010

8
Management and control TSA Board
Race
Designation
Gender
Status
Director
Black
Chairman
Male
Non-Executive
Prof TW Kambule
White
CEO MD
Male
Executive
PW Jordan
Black
Deputy CEO
Male
Executive
ME Shuenyane
White
Director
Female
Executive
S Stewart
Black
Director
Female
Non-Executive
TE Skweyiya
MR Faku
Black
Director
Non-Executive
Male
Black
Director
Male
Non-Exective
EZ Jali
EH Hertzog
White
Director
Male
Non-Executive
P Chevardiere
White
Director
Male
Non-Executive
DM Falck
White
Director
Male
Non-Executive
A Champeaux
Non-Executive
Male
Director
White
9
Management and Control TSA Board 2

• 45 of the Board members are Black people
• TOSACO appointed directors from day one
• TOSACO full voting rights from day one
• TOSACO fully involved in all Board Committees
  
• (Audit, Remuneration,Transformation) and
  chairs the
• Transformation Committee.
• The Transformation Committee requested the
  setting up of
• the Charter Compliance Committee
• Elected by employees across all levels
• Union representatives members of committee
• Meets monthly

10
Transformation Committee

• Members
• Ms T. Skweyiya TOSACO, Chairman
• Mr M. Faku TOSACO
• Dr Edwin Hertzog Remgro
• Mr. M. Shuenyane TOTAL
• By Invitation
• Mr P. Jordan MD CEO
• Ms C. Botes GM Human Resources
• Dr J. Gule GM Transformation
• 1 General Manager each time (rotational)
• 2 TOSACO members each time (rotational)
• Committee meets minimum four times a year

11
EMPLOYMENT EQUITY

• Definitions
• ACI African, Coloured and Indian
• TGT Target

12
General Management
Chief Executive Officer Philip Jordan
Deputy CEO Executive Director Morakile Shuenyane
GM Strategy Planning Nosizwe Nokwe
GM Finance Sandy Stewart
Company Secretary Andre Barwick
GM Human Resource Christa Botes
Chief Executive Officer TCS Zamani Jali
GM Transformation Dr. Jerry Gule
GM Manufacturing HSEQ Robert Cosic
GM NBLS Cecil Mahloko
GM Commercial Specialities Anil Mooloo
GM Logistics Jonathan Molapo
GM Retail Craig Lourens
13
STAFF PROFILE ACI ALL GRADES
14
STAFF PROFILE ACI MIDDLE MANAGEMENT
15
STAFF PROFILE FEMALE ALL GRADES
16
STAFF PROFILE FEMALE MIDDLE MANAGEMENT
17
SKILLS DEVELOPMENT
18
Capacity Building Prioritized

• Focussed training and development programmes
• Training spend up to 5 of total payroll
• 77 of total training spend on Black employees
• Specific focus on capacity building and having a
  skills pipeline
• Internship programme
• 17 interns in 2006
• 12 females
• 100 Black
• 2 young persons who have a disability
• Bursary Programme
• 10 places available - focus female technical
• Accelerated development programme
• Employees with potential put on an ADP
• International placements
• Graduate student to spend a year in the Total
  Group and overseas studies at Masters level.

19
Capacity building prioritized ..2

• Leadership in Oil and Energy Programme
• Enrolled 11 women employees (9 Black) in 2006, to
  continue in 2007
• Trading Skills Development Programme
• Trainee identified for local and international
  development. Initiative driven with TOSACO
• Participation in ASGISA
• Access database and enrol up to 15 trainees for
  2007

20
Supportive Culture

• Culture or climate surveys conducted annually
• IPSOS, Leadership survey and Best Company to work
  for
• Company-wide diversity workshops
• All employees and diversity management events
• Women Empowerment Programme
• Steering Committee on women issues
• Focus groups identified issues confronting women
• Remedial action plan
• Support to WOESA
• Transformation Department established
• Monitors, evaluates and guides corrective actions

21
Employee Wellness

• National Employee Assistance Programme
• Disease management
• HIV/AIDS
• Knowledge, Attitude and Practice (KAP) survey
• Voluntary Counselling and Testing
• Treatment
• Health awareness days

22
Disability management

• Gainful employment of people with disabilities
• Management and staff awareness and education
  sessions
• Auditing policies and facilities
• Attitude survey
• Self declaration in line with employment Equity
  Act to enable target setting

23
Affirmative Procurement
Year Total Controllable Spend (excl Crude) Total BEE Spend BEE Spend BEE Internal Target
2000 R510m R10m 2 0
2001 R614m R100m 16.2 15
2002 R747m R157m 21 20
2003 R749m R184m 24.5 25
2004 R1052m R330m 31 30
2005 R1000m R305m 30 35
2006 R1060m TBA TBA 35
2007 40
2008 45
2009 55
2010 70
24
Enterprise Development

• Aim growth and sustainability of HDSA companies
• Focus HDSA-owned enterprises committed to
  operating in the Energy and Liquid Fuels Sector.
• Examples
• Ezethu Logistics support in kind and skills
  transfer
• Inkwali Engineering commercial and technical
  support
• Preferential terms HDSA companies
• Premium payment
• Fast track payment of invoices

25
Enterprise development 2

• Retail Entrepreneurship Empowerment Programme
• Training and development, start up financial
  support and guaranteed initial business guidance
• Aim
• To transform retail network
• Today 38 of network operated by HDSAs
• Robust dealer placement policy (85 of all dealer
  placements to be HDSAs in Company Owned sites)
• National Dealer Council Transformation Committee
• Support for SA Supplier Development Agency
  (SASDA)
• Contribution for operational costs and capital
• Staff secondment

26
Corporate Social Investment

• Main focus areas
• Education
• Science, Maths, Chemistry and English Further
  Education and Training Eastern Free State
• Technology Teacher Training Kwa Thema and
  Tsakane
• Environmental Conservation
• Arbor Week with Dept of Water Affairs and
  Forestry
• Kruger National Park / My Acre of Africa
• Heritage
• The arts (Sibikwa Community Theatre, MIAGI)
• Social development
• Community based care
• Support for children with disabilities

27
Challenges

• Scarcity of requisite skills
• Knowledge transfer
• Retention of talent
• Genuine and sustainable affirmative procurement
• Attaining appropriate balance between managing
  the expectations of all stakeholders in a rapidly
  changing environment where the average age of the
  Company is now less than 40.