DX Cut - Outs CORP 3011 Financial Requirements Presented by: Keshantha Chetty -Commercial Finance Date: Monday, 17 November 2014

2 Financial Returnables 1. Pricing Schedule (Excel File) Consists of following worksheets: 1.Readme 2.Tender Cover Sheet Preamble Summary Pricing CPA Formulae PS Type of Material Exchange Rates Input is required in all cells shaded light green 2. CPA (IG) Form – indicate Foreign payment method

3 Tender Cover Sheet Tenderers to Enter: 1.Supplier’s Name 2.Category of Offer This information pulls through into remainder of spreadsheet

Summary Tenderers to: 1.INPUT- Totals of Foreign Currency (in ZAR) and Local Portion in details 2.Note- Summary Calc. below table. Ensure accuracy of various worksheets No Item Number Section Description Foreign Currency: 1 Foreign Currency: 4 South African Rand Portion Total Price 2101 Preliminary and General Head office overheads Factory Overheads Project management Design Fees Labour Components BRACKET,L FUSE-CUT/OUT 22kV WDXARM D BRACKET,L FUSE-CUT/OUT22KV ST XARM D HOLDER,FUSE:22 KV;100 A;CUT OUT -

Pricing Tenderers to Ensure: 1.Unit Price in relevant currency into column M, Rate of Excange, exc VAT 2. Currency code (eg ZAR or USD or EUR) into column L Conversion to ZAR takes place based on your input into sheet “5.1.6 Exchange Rates” Note: some rows and columns that appear in the Excel file are hidden in the above extract Main Pricing Worksheet Linked to various worksheets Drop Down Menus- o Column J, Column L and Column O o Correction (Column J and Column L)

6 Contract Price Adjustment (CPA)………………contd 15% Fixed Portion minimum (ie can be more eg 35% Fixed) Balance of Weightings (e.g. 85%)- make use of appropriate indices Sum of indices adds up to 100% No in-house indices allowed Proposed indices must be reflective of cost structure Final applicable CPA formulae may be negotiated with successful tenderers

7 Per Formula (A to M) Submitted, the Tenderers must Input: 1.Description of CPA Formula 2.For the balance of indices (e.g. 85%) making up each formula: % Weights (add up to 100% including minimum 15% Fixed portion) Description Definition from publisher Base month and Index plus Historical data See notes: Instructions) Note: some rows and columns that appear in the Excel file are hidden in the above extract CPA Formulae Formu la A Tenderer's description of Formula A The Tenderer must provide 5 years of historical index data for items not linked to SEIFSA or Statistics SA Indices (unless this data is available via a publicly accessible website) Index Ref. Proportions / weightings for each index (refer note 1) Description / scope of index (e.g. Labour) Full title/definit ion of index as per publisher Source/publisher of index (e.g. SEIFSA, StatsSA, LME) Base Month for CPA if not Base Date as defined (refer note 4) Base Date Index (refer note 5) Formula Currency Code Currency Code Exchange Rate Currency 1,00 = A1 A2 A3 A4 A5 A Fixed 15% minimum not subject to CPA (0.150) 0.150Total

Exchange Rates Date for which the rates are published : Currency Description Code Exchange Rate Currency 1,00 = R Amount Amount in Foreign Currency Amount in Rand Payment Method 1a, 1b or 2 South African Rand ZARR R 0.00 Australian Dollar AUDR R 0.00 Canadian Dollar CANR R 0.00 Swiss Franc CHFR R 0.00 Danish Krone DKKR R 0.00

9 Forex Payment Methods Payment method 1: Where the contract with a supplier is in a foreign currency and the payment will be effected in a foreign currency………: (1a) into the foreign bank account of the beneficiary (1b) into an SARB-approved CFC account in South Africa Payment method 2: In South African Rand at the selling spot rate of exchange obtained by Eskom’s Treasury on the date that the forward cover is cancelled. Eskom will notify the supplier of the date that the forward cover is cancelled as well as the intended payment date, which will be as per the agreed payment terms. Any exchange rate adjustment after Eskom has notified the supplier of the date and the rate which the forward cover is cancelled, will be for the account of the supplier. Fixed Rand: Provided that the tenderer nominates either Payment Method 1 or 2 as the main tender offer, an alternative payment method offering a fixed price not subject to exchange variation may be offered for Eskom's consideration.

10 Forex: Key Concepts 1.Foreign amount being claimed must be proven: commercial invoice for the same amount 2.Any markup to be charged on top must therefore be in ZAR and not Forex 3.Goods imported into the country for stock are treated as ZAR based 4.Tenderer must be importing the goods directly from overseas and not buying from a local distributor, otherwise treated as ZAR based 5.Where tenderer proposes a ZAR-based contract (alternative offer), even then the spot and forward rates must be confirmed with and approved by Treasury If approved, then Eskom is not responsible for any exchange fluctuations 6. CFC account approval is granted for 1 year at a time; supplier must renew validity with SARB timeously Other hedges: -Commodities are hedged too. We will request full information (volumes and prices) -CPA. We will request FRI

11 Preference Points- note for JVs BBBEE certificate submitted for preference points must be for the JV and not for individual entities who are party to the JV

12 Other matters Pricing Schedule to be studied in advance by the person preparing the Pricing Sch. Offers must be COMPLETE & CLEAR ERROR CHECKING o Conflicts o Totals & Subtotals o Cross References o Cross casts If Detect errors- Please inform us urgently Printing settings for all documents are to be adjusted according to Tenderer’s printer (readable, Repeat R0w & Column Headings & on A3 Paper)

Other Matters Tenderers to please complete the Excel Pricing Schedule, included on the tender bulletin Apart from the 2 identical hard copies (original and copy), the pricing schedule must also be submitted in electronic format (CD) in both an Excel & Pdf format. The hard copies must be submitted and signed by the authorised signatory on the Tender cover Worksheet 13

14 Questions