1. TRANSNET PRESENTATION TO PORTFOLIO COMMITTEE OF PUBLIC ENTERPRISES BRIEFING BY STATE OWNED ENTERPRISES ON BUDGETS AND STRATEGIC PLANS 2009/10 Mr Chris Wells Acting Group Chief Executive 17 June 2009

2. CONTENT OF THE PRESENTATION Introduction Overview – Achievements Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 1

3. INTRODUCTION Transnet is a focused freight transport company, delivering integrated, efficient, safe, reliable and cost-effective services to promote economic growth in South Africa This is to be achieved through increasing our market share, improving productivity and profitability and by providing appropriate capacity to our customers ahead of demand Vision and Mission Shareholde r Mandate Transnet’s key role is to assist in lowering the cost of doing business in South Africa and enabling economic growth through providing appropriate ports, rail and pipeline infrastructure and operations in a cost effective and efficient manner and within acceptable benchmark standards Transnet is self-funded and does not receive subsidies from the State. Values We would like our customers: to prefer us because we are reliable, trustworthy, responsive and safe; and because: our employees are committed, safety conscious, accountable, ethical, disciplined and results orientated 2

4. TRANSNET STRUCTURE * Luxrail arivia.kom 3

5. Rail Infrastructure 30 000 km of track 22 300 route km Network Electrification: –50kV AC (861km), –25 kV AC (2309km) –3kV DC (4935km) Axle loading: –Main lines at 22t / axle –Coal and ore lines 30t / axle (coal line operates at 26 ton) Current Volumes – –GFB: 78mt –Coal: 62mt –Iron Ore: 37mt Port Infrastructure 9 Commercial Ports 19 container berths 3 automotive terminals 26 dry bulk berths 39 break bulk berths 13 liquid bulk berths Current Volumes (TNPA) – Containers: 3.8 m TEUs Dry bulk: 122 mtpa Auto: 527 000 units Liquid: 49 mtpa Break Bulk: 7.5 mtpa Pipeline Infrastructure Crude line: 580 km Design Cap = 6,8 bill. l/a Current Cap = 5,8 bill.l/a Refined line:725 km Design cap = 3,5 bill. l/a Current cap = 4,3 bill. l/a Avtur: 94 km Design cap = 1,2 bill. l/a Current cap = 1,1 bill. l/a KEY STATISTICS

6. CONTENT OF THE PRESENTATION Introduction Overview – Achievements Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 5

7. Revenue Continuous increase in revenue showing results of initiatives to grow the business, with revenue increasing from R25.3bn in 2004/05 to R30.1bn in 2007/08 (19.0% increase) – 2008/09 in process of being finalised EBITDA Improvements through: ­ Operational efficiency improvements, effective cost cutting initiatives mainly due to reengineering projects ­ Sale of discontinuing non-core businesses Improvement from R7.3bn in 2004/05 to R12.8bn in 2007/08 (75.3% improvement) R billion Gearing (%) Balance sheet restructuring and cost effective debt structures yielding positive results with consistent below target gearing from 61% in 2004/05 to 30% in 2007/08 (50.8% improvement) This enables Transnet to fund capital investments more cost effectively and without government guarantees TRANSNET HAS EFFECTED A SUCCESSFUL FINANCIAL TURNAROUND OVER THE PAST FIVE YEARS +7% 08/0907/0806/0705/0604/05 07/0806/0705/0604/05 +13% 08/09 -11% 08/09 39% 07/08 30% 06/07 39% 05/06 46% 04/05 61% CAGR Budget 50% Max 6

8. Rail Ports Pipe- lines Key Performance Indicators Moves per Crane Hour (No. of moves) SIGNIFICANT IMPROVEMENT IN OPERATIONAL EFFICIENCIES Containers per Berth (No.) Weighted Loco Availability (GFB, Coal and Ore - %) * Net ton kilometer excluding the weight of the wagon Net Ton Kilometre per Loco (GFB ‘000) 08/0904/05 +15% 88% 08/0904/05 82% +7% Net Ton Kilometre per Wagon (GFB ‘000) 04/0508/09 +3% Improvement in asset utilization releasing the pressure on rolling stock requirements. CTCTDCTPE 189,989 08/0904/05 150,261 +26% Sweating the Port assets to create additional capacity and alleviate pressure on investment Capacity Utilisation (%) AvturCrudeRefined Production Interruptions (Internal & External - Hours) 06/07 965 755 08/09 -22% Operational improvements and introduction of Drag Reducing Agents allow TPL to exceed design capacities for Refined products 04/0508/09 04/0508/09 04/0508/09 04/0508/09 04/0508/09 04/0508/09

9. CONTENT OF THE PRESENTATION Introduction Overview – Achievements Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 8

10. KEY MESSAGES: CHANGES IN ECONOMIC ENVIRONMENT The global recession cause both commodity prices and inflation to ease further on the back of weak demand International trade is projected to decelerate sharply, with global trade volumes falling by 2.8% in 2009. Commodity prices have fallen sharply since September 2008. Oil has fallen more than 60% from its peak and is forecast to increase to an average of $60 -$70/barrel in 2009. Iron Ore price had declined by almost 70% before recovering slightly. Thermal coal price has fallen by more than 50% since July 2008 The Baltic Dry Index has fallen over 90% in the past 6 months Drewry forecasts container growth of only 2.8% in 2009 Container volumes through US ports have been negative for 17 consecutive months Lower ocean freight rates benefit SA The financial crisis sparked the worst worldwide recession since the Great Depression. Expectations of a quick resolution to the credit crisis have not been realised The IMF has revised its global GDP 2009 forecast to 0.5%, from 2.2% in November 2008 Transnet’s short term focus will shift towards sustaining the business Transnet is well equipped to weather the storm The growth strategy will continue to provide the strategic framework The timing of the implementation of the growth strategy will be delayed as a result of revisions to volume forecasts The short term focus is on protecting volumes and preserving cash 9 -6.4% -1.8% 0.2% 5.0% GDP (%) 2008/09 08/09 CP = 4% Baltic Dry Bulk Index $000/Tonne Week 9 11.5 Week 8 11.5 Week 11 11.6 Week 10 11.4 GFB Volumes (mt) Containers (000TEUs) Q4Q3Q2Q1 Q3Q2Q4 -9% -20% Q4Q3Q2 +4% -14% 2008/09 Budget 2009/10

11. CONTENT OF THE PRESENTATION Introduction Overview – Achievements Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 10

12. GROWTH STRATEGY: THE NEXT HORIZON OF THE TRANSFORMATION PROCESS Individual programme focus: Getting the basics right Stabilising operations Interactions: Leveraging benefits of an intermodal business Effective commercial management of the network business Operational and functional teams jointly optimise their interaction areas Integration: Accelerated rollout of operational improvements Integrated business model –End-to-end corridor view –Integrated customer view Achieve world class performance Stabilise Optimise Grow 2010 Three turnaround horizons 2005 Four-point turnaround strategyFour-point growth strategy 1 43 2 Reengi- neering – integration, productivity and efficiency Capital optimisa- tion and financial manage- ment Safety, risk and effective governance Human capital execution Growth through : Corporate governance and risk Redirect and re-engineer Balance sheet restructuring Human capital development 2007/2008 Transformation horizon Positioning the Company for growth in the future 11

13. Focusing on 5 key corridors, providing end-to- end logistics services to customers Focus on key commodities Productivity and efficiency improvements Client orientated planning and execution through integrated commercial management Financial strength and sustainability Enterprise wide performance management linked to benchmarked operating KPIs Risk and safety management Transnet culture charter Governance and performance management Replacement and expansion of existing infrastructure to support growth Integrated investments of R80bn across rail, ports and pipelines Maintenance of core asset base Disposal of non-core properties (e.g. hostels/houses) Investment plans Re-engineering, integration, productivity and efficiency Capital optimisation and financial management Safety, risk and effective governance Human capital execution Growth through TRANSNET’S GROWTH STRATEGY 12

14. GOVERNANCE – MEDIA REPORTS 13 Article attempted to conflate two different issues both apparently the subject of leaks from employees with their own agendas Succession Totally incorrect and without foundation Capital Projects Report has neither served at Board or provoked discussion at prior Board meetings therefore has of course no bearing on succession discussion Acting CEO, Chris Wells informed Board in January 2009 that he was not available to be appointed as CEO. This also is in Public Domain. Board united on process. Capital Project Internal Audit Report Alleged evidence of financial mismanagement Transnet Internal Audit outsourced to Ernst & young Strong control environment in line with best international practice Audit report in question was the result of a normal audit and evidence of proactive and very thorough governance processes Senior Ernst & Young partner responsible issued press release saying that issues are “not material” and are part of normal process. Normal forensics in place to find source of leaks as this was a breach of Transnet’s ethics and employment contract and sought to bring harm to Transnet Other Transnet has an independent tip-offs line for any anonymous reports of alleged corruption or malpractice.

15. Benefits of corridor approach Transnet as a network business needs to operate in an integrated manner throughout the logistics corridor Provide a common transformation and long-term planning backbone Maximise growth opportunities across all operating divisions (rail, port, pipeline) Capture operational and functional synergies across operating divisions through integrated solutions Improve efficiency and effectiveness of logistics supply chain Providing an end-to-end logistics service to customers Provide optimal capital base for network infrastructure evolution Focus on key commodities and aligning capital investment to high-growth potential corridors Functions NOC Projects Maintenance Yards Procurement Network Touwsrivier Mid Ilovo Plaston Kelso Eshowe Utrecht Hawerklip Naboomspruit Middelwit Vierfontein Sishen Sishen Saldanha Cape Town East London Port Elizabeth Mosselbaai Bredasdorp Protem StrandSimonstad Stellenbosch Franschhoek Bitterfontein Porterville Atlantis Prins Alfred Hamlet Riversdale Knysna CalitzdorpCalitzdorp George Ladysmith Avontuur Patensie Klipplaat Oudtshoorn Rosmead Kirkwood Alexandria Port Alfred Cookhouse Somerset East Noupoort De Aar Prieska Upington Kakamas Naroegas Worcester Sakrivier Calvinia Hutchinson Kootjieskolk Beaufort West Belmont Douglas Hotazel Warrenton Pudimoe Makwassie Mafikeng Ottosdal Vermaas Schweizer-Reneke KlerksdorpKlerksdorp Orkney Coligny Bultfontein Whites Westleigh Bloemfontein Aliwal North Sannaspos Dreunberg Springfontein Koffiefontein Hofmeyer Schoombee Jamestown Barkley East Maclear TarkastadQamata Queenstown Blaney Bethulie Seymour Umtata Fort Beaufort Amabele Maseru Marquard Ladybrand Bethlehem Wolwehoek Lichtenburg Warden Harrismith Bergville Kokstad Matatiele Harding Port Shepstone Durban Kranskop Richmond Underberg Stanger Nkwalini Richards Bay Vryheid Hlobane Moorleigh Ladysmith Roossenekal Steelpoort Graskop Machadodorp Belfast Lothair Komatipoort Baberton Phalaborwa Messina Louis TrichardtLouis Trichardt Soekmekaar Zebediela Vaalwater Nylstroom J’burg Pretoria O/fontein EllisrasEllisras Northam Charlestown Vrede Potchestroom Empangeni Donnybrook Greytown Franklin Kimberley Marble Hall Standerton Bethal B/plaasB/plaas Simuma Mandonela Winburg Theunisen Chroomvallei Drummondlea Virginia Glen H Hilton Copperton CullinanCullinan RaytonRayton Uitenhage KlawerKlawer ThabazimbiThabazimbi PietersburgPietersburg Beit BridgeBeit Bridge HowickHowick NakopNakop Postmasburg ErtsErts Manganore Palingpan Rustenburg Hoedspruit Glencoe Newcastle ArlingtonArlington Witbank Ogies Breyten Krugersdorp Welverdiend SentrarandSentrarand Welgedag KroonstadKroonstad GolelaGolela Ancona Sentrarand DCT Port Newcastle Durban Yard Depot Danskraal Kaserne Corridors Example STRATEGY IMPLEMENTATION THROUGH CORRIDOR APPROACH 14

16. Growth Strategy Key Focus Areas Financial Value Creation KEY OPERATIONAL AND FINANCIAL STRATEGIC INITIATIVES Revenue optimisation- Deliver on committed volumes for export coal and iron ore ­ Domestic coal ­ Containers on rail Targeted cost reduction including introducing shared services & procurement review Improve key productivities and operational efficiencies Implement funding plan at cost effective rates Optimise Capex on value creating growth and sustainability R80,5 billion Capex spend over five years on key corridors Target coal (74mt) and iron ore (60mt) volumes by 2013/14 Maintain operating cost increases below revenue increases over the 5 year plan Drive KPI’s to benchmark levels Proactive cash management Gearing to remain <47% and cash interest cover >3 times over 5 year plan Growth through Reengineering integration, productivity and efficiency Capital optimi- sation and financial management Safety, risk and effective governance Human capital execution 15

17. CONTENT OF THE PRESENTATION Introduction Overview – Achievements Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 16

18. REGULATORY ENVIRONMENT  The following Acts impact on the operations of the business National Port Act (2005) – Transnet National Ports Authority responsible for ensuring safety efficient and effective functioning of the ports. Setting of tariffs. ­ Ports regulatory body appointed Petroleum Pipelines Act (2003) – to licence petroleum pipelines and storage facilities and to set tariffs ­ Nersa as regulated body  Port directives/regulations not finalised as yet which makes it difficult to manage and plan future revenues  Pipeline regulations /directives issued but principles inconsistently applied between years Significant uncertainty on future revenues do not allow for alternative funding options No policy on funding for capital work in progress Regulation in its current form and application is not conducive for investment in major infrastructure projects.

19. CONTENT OF THE PRESENTATION Introduction Overview – Achievements Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 18

20. SALIENT FEATURES: TRANSNET CORPORATE PLAN 2009/10 (as submitted to Shareholder)  Economic recession put Transnet volumes under pressure (-4.7% average growth against 2008/09) and lower volumes specifically in:  General Freight  Containers  Export volumes (excluding iron ore and coal)  Revenue growth 8.8% y-o-y  Cost containment to keep cost increases to 8.4%, notwithstanding sharp increases in input costs such as electricity, fuel and other input costs.  Profitability (EBITDA) of the Group increases by 9.6% y-o-y  The 5 year capital investment program remains on a R80bn level and approximately R21bn to be invested in 2009/10  Cash from operations will remain a healthy R10.6bn in 2009/10  Gearing and cash interest cover remain within set limits over the 5 years 19

21. KEY COMMODITY VOLUMES AND TARIFF INCREASES: 5 YEAR PLAN Containers (000 TEUs) Export Iron Ore (mtpa) Export Coal (mtpa) GFB (mtpa) 11/12 4,059 10/11 3,666 09/10 3,315 08/09 3,710 11/1210/1109/1008/09 11/1210/1109/10 11/1210/1109/1008/09 CommodityVolumesAverage Tariff increases 09/10-13/14 5.9% 09/10-13/14 7.4% 09/10-13/14 9.7% Average 09/10-13/14 6.3% Average tariff increase impacted by underlying product mix (Containers & GFB) Including negotiated contract tariffs (export coal and iron ore) to: Increase infrastructure capacity to meet customer demand, and Service requirements of clients All numbers reflected as per Corporate Plan 20 Average

22. INCOME STATEMENT – CORPORATE PLAN 2009/10 Critical to maintain profitability to be able to fund major component of capex plans through internal funding sources All numbers as per Corporate Plan 21 33 615 (21 569) 12 046 (5 329) 6 717 Budget 2 682 (2 477) 205 (921) (716) 8.0 (11.5) 1.7 (17.3) (10.7) 13/14 20,8 12/13 19,7 11/12 17,1 10/11 15,0 09/10 16,5 Operating Profit Margin (%)

23. EXTERNAL REVENUE CONTRIBUTION BY DIVISION – 5 YEAR VIEW TPT 14% TPL 6% TRE 8% TNPA TFR 53% 1% Specialist Units All numbers as per Corporate Plan 22 Budget 33.6

24. OPERATING COST CONTRIBUTION – 5 YEAR VIEW Labour cost increase over 5 year period on average 6% (reduction in numbers 3%) Electricity cost increases by 158% from 2008/09 to 2013/14 30% Electricity 6% Fuel Personnel 56% Materials & OtherMaterials & OtherMaterials & OtherMaterials & Other All numbers as per Corporate Plan 23 Budget 21.6

25. BALANCE SHEET 50 13/14 39,3 12/13 44,6 11/12 46,8 10/11 46,4 09/10 43,1 Gearing (%) Must maintain headroom to be able to withstand unforeseen economic circumstances All numbers as per Corporate Plan 24 Budget 109 421 8 454 54 216 12 661 41 555 41 988 13 217 109 421 100 967

26. CASH FLOW : CORPORATE PLAN 2009/10 * Excluding the redemption of current loans Cash Interest Cover (times) 11/1212/13 4,4 13/14 3,6 3,5 3,1 10/11 3,3 09/10 3,6 Critical ratio for investors to ensure sufficient cash to service and repay loans All numbers as per Corporate Plan 25

27. SALIENT FEATURES OF FIVE YEAR CAPITAL INVESTMENT PLAN  The 5 year capital investment plan approved in the 2008/09 Corporate Plan amounts to R80.5bn  Latest approved 5-Year Investment Plan amounts to R80.5bn. Projects in plan have been reviewed and re-prioritised as well as rescheduling of cash flows over 5 years to - Remain within the financial parameters - Ensuring that revised customer demands are still met - Capacity is created on time to meet future volume demands  Of the planned Capital Investment of R80.5bn spending will be as follows: 32% in rolling stock (R25.8bn) 59% in Infrastructure related projects (R47.5bn) 9% in Acquisition of machinery & equipment and floating craft (R7.2bn)  The capital expenditure over the next three years of R57.7bn will be funded by borrowings of R28.4bn and cash from operations of R29.3bn. 26

28. TRANSNET 5 YEAR CAPITAL HISTORICAL SPEND AND INVESTMENT PLAN 80.5 2006/075 yr plan2009/102010/11Cumulative 3 yr Actual 2011/122007/082013/142008/092012/13 R billion Average investment per annum 2000/01 – 2004/05 Invested cumulatively the last 4 years more than the previous 15 years 27

29. CAPITAL INVESTMENT: 5-YEAR PLAN R80.5bn 9,071 12,841 21,912 09/10 8,121 11,321 19,442 10/11 7,180 9,156 16,336 11/12 9,439 3,892 13,331 12/13 7,718 1,762 9,480 13/14 Annual Capex (Rbn) Sustaining vs Expansion (3 year view) 58% 42% Capital spending will be closely monitored during year to ensure that financial metrics are maintained Sustaining Expansion 54% TFR R43.5bnTFR R43.5bnTFR R43.5bnTFR R43.5bn 3% TRE R2.1bnTRE R2.1bnTRE R2.1bnTRE R2.1bn 20% TNPA R16.3bnTNPA R16.3bnTNPA R16.3bnTNPA R16.3bn 8% TPT R6.3bnTPT R6.3bnTPT R6.3bnTPT R6.3bn 14% TPL R11.1bnTPL R11.1bnTPL R11.1bnTPL R11.1bn 1% Other R1.2bnOther R1.2bnOther R1.2bnOther R1.2bn Capex per Division

30. CAPITAL INVESTMENT: PLANNED SPENDING PER CORRIDOR Capex spread over the Country All numbers as per Corporate Plan 29

31. MAJOR EXISTING PROJECT TNPA: DURBAN HARBOUR ENTRANCE CHANNEL WIDENING Investment Criteria CostTimeQualityLocal Content SafetyRisk Overview The Durban Harbour Entrance Channel Widening and Deepening project is essential in enabling the Port of Durban to accommodate larger vessels through its entrance and to improve the safety of navigation. The widening of the entrance to 330m will enable the super post panamax container vessels to enter the port without any constraining factors. Current Status Excavation of the North revetment continues and is progressing well. Armouring of the new north grove and the south breakwater is making good progress. Design of the sand bypass system at A-berth is nearing completion while commissioning of the temporary bypass system is scheduled for June 2009. The project has reached a 60% stage of completion. Spending (Rm) Latest Estimated Total Cost (ETC) 2008/09 Spending Spending since inceptionActual 3 7561 9421 176 30

32. MAJOR EXISTING PROJECTS FREIGHT RAIL: ORE LINE EXPANSION TO 47mtpa Investment Criteria CostTimeQualityLocal Content SafetyRisk Overview The aim of the ore line expansion project is to increase the ore carrying capacity on the Sishen to Saldanha corridor from 41mtpa to 47mtpa. The project entails the upgrading of infrastructure and the procurement of rolling stock to enable the increase in the conveyance of the additional tonnages. The Ore Line is an expansion project aimed at increasing capacity for ore exports. A project to further increase capacity to 60mtpa to address client demand has been approved with the feasibility having been completed and the early stage of execution of the project in progress. Current Status New control software to improve reliability of tipplers, conveyors and reclaimers has been successfully implemented. Passing loops are handed over to operations after completion on a continual basis. Various contracts for the power upgrade and material acquisition are underway. The project is 56% complete. Spending (Rm) 2008/09 Spending Latest ETCSpending since inceptionActual 2 8001 264516 31

33. Investment Criteria CostTimeQualityLocal Content SafetyRisk Overview The aim of this project is to increase the coal carrying capacity of the line from the mines in Mpumalanga to the Port of Richards Bay. This is an expansion project and of major economic importance as it affects exports. The expansion of the Coal line entails the upgrade and building of new infrastructure as well as the acquisition of rolling stock. Current Status Rail and power infrastructure work is progressing well and is progressing well. Locomotive upgrades and wagon refurbishments are progressing according to plan. Spending (Rm) 2008/09 Spending Latest ETCSpending since inceptionActual 4 9891 749546 MAJOR EXISTING PROJECTS FREIGHT RAIL: COAL LINE EXPANSION TO 78 mtpa 32

34. Investment Criteria CostTimeQualityLocal Content SafetyRisk Overview Ngqura Container Terminal is a Greenfield project with the objective of providing a full service container terminal together with rail links to the port. The scope is to develop a 4 berth container terminal and further extending the port infrastructure for a small craft basin, tugs, buildings and other landside infrastructure for the functioning of a container terminal. The project will provide 700 000 TEUs/a capa city when complete. Current Status 30 hectares of paving have been completed behind the first 2 berths while work on the trailer park and admin buildings is progressing well. The terminal handled its first two vessels in September 2008. Transformers for Eskom and cargo handling equipment for Port Terminals were offloaded from these vessels. Spending (Rm) 2008/09 Spending Latest ETCSpending since inceptionActual 4 1421 3721 009 MAJOR EXISTING PROJECTS TNPA: NGQURA CONTAINER TERMINAL 33

35. Investment Criteria CostTimeQualityLocal Content SafetyRisk Overview The aim of this project is to build a 550 km new trunk line from Durban to Jameson Park (Gauteng), 24 inch in diameter, addressing the increased demand for fuel in Gauteng and surrounding areas. The trunk line will connect an inland and coastal terminal with significant storage capacity. The existing pipeline is 40 years old and needs replacing. With the front-end engineering design phase completed, Transnet was granted licence to construct the NMPP by NERSA. It also entails the replacement of two northern network pipelines that have outlived their sustainable life. Given the energy problem facing South Africa, the Board has granted unconditional approval to commence construction in February 2008. This project is considered a strategic project for the Company, and is of national importance. Current Status In May 2008 a R3.3 Billion contract was awarded to Spiecapag Group 5, a South African French Consortium for the construction of the NMPP. Favorable Environmental Approvals for the project scope has also been received. Manufacturing for the 16” pipe commenced in April 2008 and all 105 000 tons of steel for the main 24” pipe has arrived in South Africa. As at end March 2009, the first 6 out of a total of 170 km of 16” pipe had been laid in the Kendall/Waltloo area. It is expected that the last phase of this project will be completed at the end of 2011. Spending (Rm) 2008/09 Spending Latest ETCSpending since inceptionActual 12 6003 2782 565 MAJOR EXISTING PROJECTS TPL: NEW MULTI-PRODUCT PIPELINE

36. 35 COMPETITIVE SUPPLIER DEVELOPMENT PROGRAMME (CSDP) The aim of the Transnet Competitive Supplier Development Programme (CSDP) is to localise Transnet supply chain to a reasonable level and to promote South Africa as an off-shore source of goods and services for Original Equipment Manufacturers (OEM’s). This will secure source of supply, provide industrialisation opportunities for national businesses and reduce lead times Initially, the programme is being piloted over three years with rolling stock and port equipment purchases as its focus. The following is the progress to date: Company & InvestmentProgramme Kalmar - R350 million port equipment and maintenance Kalmar has a previous NIPP obligation. They are first building a Cargotec (port handling equipment and freight solutions) training school. Their initial obligation for CSDP will be for free training hours and a discount rate per R10 million purchased Working with Kalmar on skills transfer to local organisations in respect of motor and engine maintenance EMD - R800 million :5 year parts deal EMD has already committed to the transfer of Intellectual Property to TRE in building a world class traction motor assembly line (EMD’s estimate of $15 million value) EMD - R800m contract “50 Like New” Locomotives Local assembly and engineering done by TRE and with transfer of skills, TRE now able to do substantially more of the total Loco’s build. Mitsui (VENUS /MARS) - Extension of the 19E contract - electric locomotive - by 35 vehicles – R600 million Original contract has NIPP obligations – Significant portion of assembly & engineering done locally. Mitsui will build a training facility to satisfy their NIPP obligations. We have also negotiated free training for TRE maintenance practitioners Current 100 Locomotive tender (first time CSDP was used in a tender) - Both companies are proposing approximately a R1 billion investment over several years Adjudication process currently underway. Locomotive steering Committee set up to ensure adequate governance

37. 5-YEAR FUNDING REQUIREMENT PER 2009/10 CORPORATE PLAN * Excluding the redemption of current loans More than 50% of the funding requirements for the 2009/10 financial year has already been raised to date on the strength of Transnet’s balance sheet. All numbers reflected as per Corporate Plan 36 BudgetProjections 2009/10 R million 2010/11 R million 2011/12 R million 2012/13 R million 2013/14 R million Cash flow from operating activities10 57211 69613 16914 47416 941 Cash flow from investing activities(23 438)(21 137)(18 765)(14 140)(10 151) Capital investment(21 912)(19 442)(16 336)(13 331)(9 480) Capitalised borrowing cost(1 850)(1 854)(2 212)(663)(489) Other investing activities324159(217)(146)(182) Net cash surplus / (shortfall)*(12 866)(9 441)(5 596)3346 790

38. TRANSNET FUNDING SOURCES TO TAP INTO The following funding sources have been initiated. The amounts are indicative & subject to market conditions Domestic bonds (TN17, TN23 and T27 Bonds)(±R6 bn) Currently tapping R1 bn per month and plan to launch at least 1 new bond & increase the size as liquidity increases ECA Supported Funding (R2 bn) 1 st transaction with Finvera to be concluded by early April 2009. Development Finance Institutions (R4bn) –JBIC loan agreement signed 26 March –first drawdown mid April 2009 approximately R2 bn and balance (R2bn) in line with project payment dates –AfDB at due diligence stage expected to conclude end May 2009 Domestic Loans (R7 bn) Rand Bilateral loans from banks(8) and other financial institutions(2) International Bond (±R5 bn) Close to concluding documentation & update with year-end financials, if not implemented will replace with domestic bonds Other International Initiatives AFLAC Loan (±R1.5 bn) – legal documentation finalized - still negotiating pricing levels Commercial Paper Bi-weekly issues of CP varying between R500m and R750m – plan to replace maturities with bonds. Pipeline Financing Considering a ring-fenced financing structure to align with regulatory environment. Transnet has committed banking facilities in excess of R4 billion that can be utilised when required

39. CONTENT OF THE PRESENTATION Introduction Overview – 2008/09 Preliminary Results Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Strategic Priorities 2009/10 Conclusion 38

40. E D C B A 7654321 3 1 2 6 5 8 7 4 9 Consequence Rating Likelihood Rating Revenue/Volume Growth Non compliance with Safety and Standard Operating Procedures (SOPs) Economic Regulation (Ports Regulator and National Energy Regulator of South Africa) Funding/Liquidity Risk Delivery of capital projects on time and within budgets and affordability thereof Asset Performance and Maintenance Regime Human Resources Capability to deliver on growth strategy Environmental Risks Input costs including: Energy (electricity), Fuel, Steel, Pricing & Supply Commodity & Concentration Risks (Third Party Supplier Risks) GROUP’S KEY RISKS (as at May 2009) Strategic residual risks heat map 10 Priority I risk –Transnet Group CE and Board level Priority II risk -Operating Divisions’ CEOs Level Priority III risk -General Managers’ level Priority IV risk –Managers’ level Priority V risk –Employees’ level 3 1 2 6 5 8 7 4 9 10 Mitigating plans are in place to manage the key risks 39

41. IMPLEMENTED A DYNAMIC MANAGEMENT FRAMEWORK WITHIN EPM OPERATING MODEL Performance interactions Performance Assessment and Rewards Strategy and Targets Track and monitoring Creating Realistic Budgets and plans EPM Dynamic Management Framework to actively assess performance and plan/reallocate resources to achieve goals Weekly Activity Reporting Monthly Performance Assessment Quarterly Performance Assessment Focus on weekly trends volume trends, year end estimates and impact analysis on Group Revenue Monthly assessment of performance, success of cost cutting and capex initiatives and updated year end estimates Quarterly workshop (Ext. Exco) on year-to-date results, year-end estimates and effectiveness of initiatives Dynamic Process Where we are? (measurement) Where we planned to be? (evaluation) Corrective measures (action) 40 80% 90% 95% 100% 105% Corporate Plan

42. 2009/10 EXECUTIVE SUMMARY WEEKLY ACTIVITY REPORTING Week 11 Results – Key Commodities 1,41 GFB (mt) 1,35 4,1% 66,644 Containers (TPT)Containers (TPT)Containers (TPT)Containers (TPT) 61,102 +9% 1,24 Export Coal (mt)Export Coal (mt)Export Coal (mt)Export Coal (mt) 1,37 -9,5% 0.69 Export Iron Ore (mt)Export Iron Ore (mt)Export Iron Ore (mt)Export Iron Ore (mt) 0.83 -17% June 2009 Estimate 5.95 GFB (mt)GFB (mt)GFB (mt)GFB (mt) 5.89 7.39 1.0% Analysis of Volume and Revenue Variance - Year end Estimate (2009/10) Current Estimate Budget 268 Containers (000 TEUs)Containers (000 TEUs)Containers (000 TEUs)Containers (000 TEUs) 271 251 -1,0% 3.72 Export Iron Ore (mt)Export Iron Ore (mt)Export Iron Ore (mt)Export Iron Ore (mt) 3.68 2.50 1.1% Revenue contribution to Group Comments 5,8 Export Coal (mt)Export Coal (mt)Export Coal (mt)Export Coal (mt) 6,1 5,1 -3,6% Budget Actual Previous year The Transnet weighted volume variance estimate for 2009/10 is negative 1.4% (estimated 2.5% negative for June 2009). Group revenue (all commodities) is estimated to be 4.7% below budget for the 2009/10 year, mainly due to limitation on petroleum tariff increases, container volumes and negative price mix, export coal volumes and other bulk commodities. The Group revenue variance for 2009/10 would only be 2.0% below budget if the impact of TPL’s tariff increases are excluded. 447 Liquid Bulk (TNPA) 872 -49% 109,400 Break Bulk (TPT) 166,613 -34% 358,376 Other Bulk (TPT) 369,753 -3% % Volume Variance % Revenue Variance Size -8%-6%-42%-4%-2%-10%6%4%2%0% Gas Petroleum Other Bulk Liquid Bulk Automotives Containers Iron Ore (TPT) Coal (TNPA) Iron Ore (TNPA) Coal (TFR) Iron Ore (TFR) GFB Spot Price $/Tonne Coal Spot Price $/Tonne Iron Ore Baltic Dry Bulk Index $/Tonne Current Year Prior Year Global Bulk Indicators TRANSNET STATUS Level 1 Negative 2% revenue variance, excluding TPL tariffs Negative 4.7% revenue variance, including TPL tariffs Extract of Week 11 Report 41

43. CONTENT OF THE PRESENTATION Introduction Overview – 2008/09 Preliminary Results Changes in Economic Environment Transnet Strategy Regulatory Environment 2009/10 Corporate Plan Risks and Mitigating Plans Conclusion - Strategic Priorities 2009/10 42

44. CONCLUSION - 2009/10 STRATEGIC PRIORITIES Increasing export iron ore volumes by 11.6% above the budget to contractual levels (47.9mt compared to budget of 43mt); Increasing current throughput in domestic coal to at least achieve the budgeted volumes of 21.5mt; Containers on rail to increase by 10% above the current budget of 544 460 TEUs to 600 000 TEUs; To maintain at least the current trends in magnetite and cement volumes which are on average 70% and 20% in excess of budgets respectively. Volume and revenue opportunities Whilst most divisions have made good progress on committing to cost savings initiatives, we have only managed to obtain plans to substantiate R1bn savings compared to the R1.4bn (level 1) required. It is essential that the cost structures must be reduced through efficiency improvement and elimination of non-revenue related costs. The Group minimum requirement remains R1.4bn reduction in costs and operating divisions will be measured monthly against these targets going forward. Cost savings Focusing on the execution of the capex plans with optimal phasing Committed to investing R80.5bn over the next 5 years Capital optimisation We will drive to achieve “a world-class” (otherwise known as best-in-breed) operational performance in each key area of operations, in the near future. Accordingly, the KPI project will be driven hard this year with the focus on at least achieving the KPIs set out in the Corporate Plan Operational efficiencies 43 The objective is to reduce the number of incidents and the cost of losses by 33% from 2009/08 actual levels (approximately R200m reduction at Group level). Environmental compliance has been elevated as a key priority in Transnet and we agreed to perform the following at all main areas of operations: Review of maintenance and implementation of proper and structured maintenance programmes Getting housekeeping up to standard and comply with all environmental requirements To start with a compliance review/audit to identify areas of non-compliance/unsatisfactory standards Safety and environment

45. THANK YOU END OF PRESENTATION