1. CONVEYOR IDLERS CORP 3340 Financial Requirements Presented by: Commercial Finance Date: Thurs 22 October 2015

2. 2 Financial Returnables 1. Pricing Schedule (Excel File) Consists of following worksheets: 1.Instructions 2.Cover sheet 3.Conveyor_Idlers_Summary 4. Option X 1 5.PS5 Schedule Input is required in all cells shaded light green

3. Cover Sheet 3 Tenderers to Enter all relevant details on the cover page

4. 4 Conveyor_Idlers_Summary sheet Tenderers to Enter: 1.Supplier’s Name This information pulls through into remainder of spreadsheet

5. 5 Conveyor_Idlers_Summary sheet Tenderers to Enter: 1.In column I indicate the tendered price excluding VAT per 1 item. 2.Column J will then indicate the total tendered price of that item, excluding VAT but taking estimated volumes into consideration. Note: some rows and columns that appear in the Excel file are hidden in the above extract COLUMN:FGHIJ

6. 6 Summaries: PS 5 Schedule Tenderers to Enter: 1.Vat into row 48 (automated) 2.Pricing information from the main pricing sheet titled “Conveyor_Idlers_Summary” Note: some rows and columns that appear in the Excel file are hidden in the above extract

7. 7 Activity Schedules: CPA Tenderers to Enter CPA per line item: 1.Use drop-down list to select applicable CPA formula per line item into column L 2.Default is “Fixed’ - if left unchanged, offer is Fixed and Firm CPA Formulae are updated in sheet “Option X 1” Note: some rows and columns that appear in the Excel file are hidden in the above extract COLUMN:GJLM - P

8. 8 Contract Price Adjustment (CPA) What is CPA? CPA is a mechanism used to track the movement of a contractor’s costs over the Contract period to provide reasonable reimbursement for price fluctuations. CPA determinations are calculated using a pre-determined formula based on the assumed cost drivers of a particular product or service and a recognised index-based system which tracks those cost movements over a period of time. Prices will be fixed for first year and thereafter CPA will apply from anniversary of contract onwards. Separate CPA invoices are submitted for each base invoice once CPA applies ie CPA is not a price increase updated on the contract but rather a price adjustment based on the movement in the applicable index vs the base index

9. 9 Contract Price Adjustment (CPA)………………contd 10% Fixed Portion minimum (ie can be more eg 35% Fixed) Balance (e.g. 90%) makes use of relevant 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

10. 10 Per Formula (A to M) Submitted, the Tenderers must Enter: 1.Description of CPA Formula 2.For the balance of indices (e.g. 90%) making up each formula: % Weights (add up to 100% including minimum 10% 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 Option X1: CPA Formulae

11. 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. 12 Other matters Printing settings for all documents are to be adjusted according to Tenderer’s printer 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 Excel format. The hard copies must be submitted and signed by the authorised signatory.

13. 13 Other matters: Financial Analysis Companies Signed Independent Auditor’s Report / Reviews Report Directors’ Report Statement of Financial Position (comparative figures) Statement of Comprehensive Income (comparative figures) Statement of Changes in Equity (comparative figures) Statement of Cash Flows (comparative figures) Notes to the Financial statements Close Corporations Signed Accounting Officers Report Members’ Report Statement of Financial Position (comparative figures) Statement of Comprehensive Income (comparative figures) Statement of Changes in Equity (comparative figures) Statement of Cash Flows (comparative figures) Notes to the Financial statements

14. 14 Other matters: Financial Analysis……….contd. Applicable to companies and close corporations A Signed Guarantee Letter:- If a subsidiary which is tendering does not have its own set of financial statements or its financials are consolidated into that of the Holding company the Holding company must provide a guarantee letter which will allow Eskom to utilise its financial information for the purposes of their subsidiary and to further guarantee any liability which may arise as a result of a subsidiary failing to perform in terms of the contract

15. 15 Questions