parliament, cape town 1 september 2006

1Subsidiary – Author - date

TOTAL SOUTH AFRICA

A presentation to the

Parliamentary Portfolio Committee on progress made since signing

of the Liquid Fuels Charter

Parliament, Cape Town

1 September 2006

Dr J. Gule 30 August, 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


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)


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 country’s economy, as well as

significant decreases in income inequality”.

dti policy document 2002


The Charter drives our mission


TOTAL SOUTH AFRICA STRUCTURE

TOSACOTOTAL

OVERSEASRemgro

TOTAL SA

TOTAL

Botswana

TOTAL

Lesotho

TOTAL

Swaziland

NATREF

(Crude oil Refinery)

SAFOR

(Base Oil Refinery)

TOSAS

(Bitumen)

TOTAL

Namibia

50.1% 25% 24.9%

36.36%

19.0%

30.0%

100.0%

100.0%

100.0%

100.0%TOTAL COMMERCIAL

SERVICES(TCS)

24,9%


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


Management and control – TSA Board

BlackDirectorFemaleNon-ExecutiveTE Skweyiya

WhiteDirectorFemaleExecutive

WhiteDirectorMaleNon-Executive

EZ Jali

WhiteDirectorMaleNon-Executive

MR Faku

BlackDirectorMaleNon-Exective

P Chevardiere

BlackDirectorMaleNon-Executive

DM Falck WhiteDirectorMaleNon-Executive

EH Hertzog

BlackDeputy CEOMaleExecutiveME Shuenyane

WhiteCEO MDMaleExecutivePW Jordan

BlackChairmanMaleNon-ExecutiveProf TW Kambule

RaceDesignationGenderStatusDirector

S Stewart

A Champeaux Non-Executive Male Director White


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


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


EMPLOYMENT EQUITY

Definitions:

• ACI = African, Coloured and Indian

• TGT = Target


General Management

Chief Executive OfficerPhilip Jordan

Deputy CEO & Executive DirectorMorakile Shuenyane

GM: FinanceSandy Stewart

Company SecretaryAndre Barwick

GM: Human ResourceChrista Botes

GM: TransformationDr. Jerry Gule

GM: NBLSCecil Mahloko

GM: RetailCraig Lourens

GM: Commercial & Specialities

Anil Mooloo

GM: Manufacturing & HSEQ

Robert Cosic

GM: LogisticsJonathan Molapo

Chief Executive Officer

TCS

Zamani Jali

GM: Strategy & PlanningNosizwe Nokwe


51%53%

55%

62%64%

68% 69% 70%72%

TSA2000

TSA2001

TSA2002

TSA2003

TSA2004

TSA2005

Jun-06 TSATGT2006

TSATGT2007

TSA 2000

TSA 2001

TSA 2002

TSA 2003

TSA 2004

TSA 2005

Jun-06

TSA TGT 2006

TSA TGT 2007

STAFF PROFILE: ACI – ALL GRADESSTAFF PROFILE: ACI – ALL GRADES


21%

33%

41%44%

51% 52% 52%

56%58%

TSA2000

TSA2001

TSA2002

TSA2003

TSA2004

TSA2005

Jun-06 TSATGT2006

TSATGT2007

TSA 2000

TSA 2001

TSA 2002

TSA 2003

TSA 2004

TSA 2005

Jun-06

TSA TGT 2006

TSA TGT 2007

STAFF PROFILE: ACI – MIDDLE MANAGEMENTSTAFF PROFILE: ACI – MIDDLE MANAGEMENT


27%

32%

37%36% 36% 35%

34%

38%40%

TSA2000

TSA2001

TSA2002

TSA2003

TSA2004

TSA2005

Jun-06 TSATGT2006

TSATGT2007

TSA 2000

TSA 2001

TSA 2002

TSA 2003

TSA 2004

TSA 2005

Jun-06

TSA TGT 2006

TSA TGT 2007

STAFF PROFILE: FEMALE – ALL GRADESSTAFF PROFILE: FEMALE – ALL GRADES


25%26%

27%26%

28%29%

28%

33%34%

TSA2000

TSA2001

TSA2002

TSA2003

TSA2004

TSA2005

Jun-06 TSATGT2006

TSATGT2007

TSA 2000

TSA 2001

TSA 2002

TSA 2003

TSA 2004

TSA 2005

Jun-06

TSA TGT 2006

TSA TGT 2007

STAFF PROFILE: FEMALE – MIDDLE STAFF PROFILE: FEMALE – MIDDLE

MANAGEMENTMANAGEMENT


SKILLS DEVELOPMENTSKILLS DEVELOPMENT


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.


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


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


Employee Wellness

• National Employee Assistance Programme

• Disease management

- HIV/AIDS

• Knowledge, Attitude and Practice (KAP) survey

• Voluntary Counselling and Testing

• Treatment

• Health awareness days


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


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%


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


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 HDSA’s in Company Owned sites)

• National Dealer Council Transformation Committee

• Support for SA Supplier Development Agency (SASDA)

- Contribution for operational costs and capital

- Staff secondment


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


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.

parliament, cape town 1 september 2006

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