Parliamentary Committee Presentation 19 March 2010

CONTENTS Slide 2 Performance Management Vacancies & Employee Turn Over Executive Remuneration Structure Board Remuneration Structure & Performance Employment Equity

Performance Management Slide 3 Performance Management System -Corporate Plan is concluded with Key Performance Areas, Indicators and Targets cascaded to Executives/Business Units and then to lower levels in the company. -Personal Development Plans are completed aligned with Individual Scorecard -The Scorecard Performance Areas are based on business strategic goals and objectives Performance Management Reviews -Performance Management cycle starts with planning on 01 April. -Ongoing performance monitoring by conducting quarterly reviews -Final performance review conducted at the end of the financial year

Current Executive Positions & Vacancies Position OccupiedVacant Chief Executive Officer X Chief Finance OfficerX Chief Technical OfficerX Chief Operating OfficerX Executive: Sales & MarketingX Executive: Capital ProgramX Executive: Business SupportX Executive: Special ProjectsX Slide 4

Vacancies & Employee Turn Over Slide 5 Newly Established Executive Positions -Chief Operations Officer -Sales & Marketing Executive Recruitment & Approval Process -Candidates (COO & Sales and Marketing Executive) have been identified -Approval of appointments by Board is underway Employee Turn over -The position for Chief Technical Officer became vacant as from 1 March 2010

Key Performance Areas Slide 6 Key Performance Area Key Performance IndicatorDescription Strategic (40%) Reduced Telecommunications Prices Once off 10% of price reduction from the Wholesale STM-1 pricing as measured against the 2010 Pricing Benchmark. Broadband Connectivity Access Expand the availability of broadband connectivity to a minimum of 5 (five) Broadband Infraco independent POPs in addition to POPs in 6 cities (available via Neotel). Ability to provide backhaul connectivity to USALs in 1 (one) previously underserviced area as per license terms and conditions. Financial (30%) RevenueR412 M EBITDA(R98 M) Net Profit/Loss According to the Broadband Infraco’s business plan the company will become profitable after five years of operation. Debt Funding Drawdown from existing debt facility from financial institutions during the financial year is R142 M.

Key Performance Areas Slide 7 Key Performance AreaKey Performance IndicatorDescription Operations, Customer and Capital Program (30%) Actual Time to restore Core Network Faults Actual time to restore a core network (fibre network and associated electronics) fault on 80% of all reported faults per month (within 8 hours). Actual time to restore a core network (fibre network and associated electronics) fault on 20% of all reported faults per month (within 10 hours). Actual Time to restore facilities related faults Actual time to restore a facilities related (support systems such as batteries and fire control systems) faults which is service affecting (within 4 hours). Availability of Network at Customer Service Level Agreement Availability calculated as a percentage of the uptime to the downtime of a customer service Increased Customer Base Infraco must achieve a market share of 12% Percentage of Projects put into Commercial against approved plan All projects to be completed and put into commercial operation to earn revenue, against approved annual plan Project Cost Variance against approved budget A 5% variance in final expenditure from the approved project budget

Remuneration Structure: Executives Slide 8 The Total Cost To Company remuneration elements include: -Annual Pensionable Remuneration -Car Allowance -Performance bonus of 30% (maximum) of Total Cost To Company based on company & individual performance

Board Remuneration & Performance Slide 9 Remuneration Structure -Broadband Infraco falls under SOE size B ( Revenue between R243m – R2,5bn) -Chairpersons and Non Executive Directors annual retainers fees are determined according to the remuneration model developed by the DPE -Board remuneration is effected on quarterly basis and disclosed in the annual report at the end of the financial year Performance Evaluation -The Board’s performance evaluation is conducted annually -The latest evaluation was conducted in 2008/9 financial year -The outcome of the evaluation indicated good governance with regards to the Board’s operations and effectiveness

Employment Equity Status Slide 10 MaleFemale AfricanColouredIndianWhiteTotalAfricanColouredIndianWhiteTotal Executives

Thank You Slide 11