PRESENTATION TO PORTFOLIO COMMITTEE ON MINERALS

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PRESENTATION TO PORTFOLIO COMMITTEE ON MINERALS
ENERGYON 2 MARCH 2005
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INTRODUCTION

• THE CORPORATE PLAN
• Captures CEFs strategic objectives for the next
  4 years
• Is robust and shows that CEF will be sustainable
  into the future
• Is produced with input from both the executive
  and management
• - Tony Manning Workshop
• - Performance Management Workshop

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THE STRATEGY

• The strategy was developed by management at a
  workshop facilitated by Tony Manning and attended
  by management in October 2004.
• The outcome of this workshop indicated 3 critical
  focus areas for CEF to succeed into the future.
• - Identify and invest in PROJECTS
• - Ensure adequate PROCESSES are put in place to
• manage and monitor CEFs business
• - Nurture, identify and work with PARTNERS that
• will complement CEFs business and
  enable
• success in achieving its goals.

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CEF Value Plan

• Identify high-potential commercial
  developmental opportunities
• Market/technology knowledge
• Market CEF
• Contact strategy
• Introductory presentations
• Idea development
• Ongoing relationship
• Project development
• Build resources capabilities
• Develop marketing strategy

PROJECTS
CEF manages defined energy interests for the SA
government and invite and support the
development of new energy entities
PROCESSES
PARTNERS

• Effective identification
• Screening method (credibility, competence)
• Relationship management
• Contact plan
• Delivery
• Development strategy
• Clear contracts
• Resources support (Govt. influence, skills,
  etc)
• Robust reporting

• New opportunity selection
• Develop screening method
• Clear priorities
• Resource application
• Know whats needed
• Best for the job
• Management
• Effective controls (progress, risk, finance,
  audit, etc)
• Governance
• Leverage synergies

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VALUES

• Urgency/Speed
• Simplicity
• Candour
• Integrity

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OPERATING PRINCIPLES

• Sustainability
• Socio-economic and environmental benefits to be
  considered in conjunction with financial returns
• Balance between developmental and commercial
• All funding without State guarantees
• Support services to be of a very high standard
• - Finance
• - Internal Audit
• - Secretariat
• - Human Resources
• - Legal
• - Facilities
• - IT

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BUSINESS STANDARDS

• Compliance with legislation
• Good corporate governance
• Policies and procedures
• BEE
• Code of ethics

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CEF (PTY) LTD

• Two main functions
• - INVESTMENT in energy sector
• - SUPPORT to group companies and third parties

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EDC

• SKILLS
• Three new positions have been budgeted for in
  EDC
• - Marketing and Business Analyst
• - Project officer - development
• - Project officer - commercial

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EDC PROJECTS 2005/2006
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EDC PROJECTS 2005/2006
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SUPPORT STAFF

• CEF has a support staff which caters for the
  services it provides
• Services offered
• - Financial management
• - Secretariat
• - Internal audit
• - Human resources
• - Legal
• - Facilities
• - IT
• Entities to which services are provided
• - CEF - OPCSA - Solar cookers
• - EDC - NORAD - Solar heaters
• - PASA - iGas - Mine Health Safety
• - Equalisation Fund
• - Dormant Companies

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SUPPORT STAFF (contd)

• With current expansion plans, additional support
  staff have been provided for
• Financial Accountant
• - Increased project activity via EDC
• - Management of iGas investment
• - OPCSA expansion plans
• Secretarial Assistant
• Internal Auditor
• Procurement Officer

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2004 REVIEW

• Better year from a group perspective
• - PetroSA sorted out plant issues
• - PetroSA feedstock plans in place
• - High crude prices
• - Investment in Rompco via iGas
• Stabilising top management structure
• Repayment of fixed portion of foreign debt to
  take advantage of strong rand and to create
  significant future savings
• Designation of PASA as agent in terms of MRPDA
• Support of new CEF Board
• Significant progress on viability of Torbanite
  project
• Robust plan for EDC in place

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CEF ORGANOGRAM
These companies will be incorporated during the
plan period.