Employee Share Ownership Our Journey

Table of content

• Who are we?– Structure

• The trust– Beneficiaries– Rules

• Communication– Unpacking what it is and what it is not– Training and development– Company Expectations – Lessons Learnt

Optimum Coal Group Structure as at 13 July 2012

100%100% 100% 100% 100%100%

100% 100% 100% 51% 100% 100%100% 100%

Mpefu Project

Nekel Project

Overvaal Project

Optimum Collieries

6.8M RBCT shares

Shares in listed

entities

Vlakfontein Project

Optimum Coal Mine (Pty) Ltd

Optimum Coal

Terminal (Pty) Ltd

Optimum Vlakfontein

Mining & Exploration

(Pty) Ltd

Optimum Mpefu

Mining & Exploration

(Pty) Ltd

Optimum Nekel

Mining & Exploration

(Pty) Ltd

Optimum Coal

Investments (Pty) Ltd

100%

15.9% 5.28% 7.55% 2.26% 10.33% 9.93% 38.8%

100%

Glencore International

9.93%

Optimum Coal Holdings Limited

Monkoe Coal

Investments

BBBEE

Micsan Investment

s

BBBEE

Mobu Resources

BBBEE

KwiniMining

Investments

BBBEE

Employee Trust

BBBEE

Community Trust

BBBEE

WarriorCoal

BBBEE

BEE /HDSA 61.18%

Optimum Platinum

Resources (Pty) Ltd

Optimum Coal

Services (Pty) Ltd

Optimum Overvaal Mining &

Exploration (Pty) Ltd

Koornfontein

Mines (Pty) Ltd

Optimum Koornfontei

n Investments

(Pty) Ltd

Group Services

PublicShareholders

0.02%

100%

100% 100%100%

Koornfontein Mines

Composition of the Trust

• The Trust owns 25 million shares in the Company

• This equates to 9.93% ownership of OCH.

• A total of 2 270 employees.

• The Company nominates 2 trustees and employees elects 3 Trustees.

• The trustees are guided by the trust deed.

• All employees of the company are beneficiaries of the trust.

Income of the Trust

• The income of the Trust comes from dividend payments made by the Company.

• Four payments since 2010.

• The Trust Deed specifies the Benefits that Employees can get from the Trust

• The benefits are:

– 10% of income is held in a discretionary fund which the Trustees can use for the benefit of Employees. This money is used for hardship cases and Employees who require assistance (e.g. medical expenses beyond what the medical aid would cover) may apply

– 90% of the income may be distributed to Employees. The intension of the Trust Deed was that half of this money should be paid directly to Employees whilst half should be paid on behalf of Employees into pension and provident funds so that adequate provision is made for retirement.

However, the Trustees may decide how the 90% that must directly benefit Employees must be distributed.

Lessons Learnt• Communication is critical

– What the trust is and what it is not– Management of expectations– Responsibilities of trustees– Financial literacy is important

• A plan to help shift mindsets– At all levels of the organisation.– Not a stand alone “initiative”, integration with other business

systems and processes.– Employee participation and involvement

• Giving a gift can be very difficult .

Discussion

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