Presentation to Portfolio Committee on Agriculture, Forestry & Fisheries Embracing Change

1. Presentation to Portfolio Committee on Agriculture, Forestry & Fisheries Embracing Change 14 June 2011

2. Introducing the Oceana Group Limited (OGL) • Oceana Group... • ...is the leading and only JSE-listed fishing company in South Africa. • ...is an empowered Level 3 BEE contributor that supports the government’s growth and transformation objectives. • ...is a responsible and involved corporate citizen that operates in strict accordance with the laws of the country and embraces sustainable business practices. • ...is a great company to work for with fair and equitable employment policies and a commitment to improving the well- being of its employees OGL has been verified as a black-owned level 3 BBBEE contributor

3. Key Challenge: Agreeing on a uniform measurement of Transformation OGL has been verified as a black-owned level 3 BBBEE contributor

4. Key Challenge: Agreeing on a uniform measurement of Transformation Broad-based: Ownership Management & Control Employment Equity Skills Development Preferential Procurement Enterprise Development Socio-Economic Development “... the Council (Government BBBEE Advisory Council) called for the CONSISTENT implementation of broad-based BEE in ALL SECTORS of the economy, to ensure that the policy touches the lives of more people," SA Presidency 1 April 2011 OGL has been verified as a black-owned level 3 BBBEE contributor

5. Key Challenge: Agreeing on a uniform measurement of Transformation Narrow-based: Ownership Management & Control “To define BEE too narrowly limits it to a set of transactions TRANSFERRING CORPORATE ASSETS FROM WHITE TO BLACK ownership” – Dept. of Trade and Industry’s BEE Strategy doc. OGL has been verified as a black-owned level 3 BBBEE contributor

6. Current Status of Transformation of the Fishing Industry • Status currently known by DAFF • Resolve Group appointed to conduct a detailed Performance • Review across all sectors of the industryin 2010 • All rights holders had to submit a completed electronic • Request for Information (“RFI”) questionnaire by 30 April ’10 • Results not released yet OGL has been verified as a black-owned level 3 BBBEE contributor

7. Transformation in Oceana Group in 2005 At the end of 2005, long-term fishing rights were allocated for varying periods of between 8 and 15 years... OGL has been verified as a black-owned level 3 BBBEE contributor

8. Transformation in Oceana Group after allocation of long-term fishing rights There may have been an expectation that with our rights in place, we would simply have maintained our transformation status and done nothing more... OGL has been verified as a black-owned level 3 BBBEE contributor

9. Transformation in Oceana Group after allocation of long-term fishing rights • Instead, we’ve • accelerated transformation • since long-term rights were allocated. OGL has been verified as a black-owned level 3 BBBEE contributor

10. How has Oceana Transformed? Black Ownership - % 19952005Current 25,1% 19,6% 50,5%* OCEANA GROUP IS NOW A BLACK-OWNED COMPANY *Independently verified by Empowerdex OGL has been verified as a black-owned level 3 BBBEE contributor

11. How has Oceana Transformed? Profile of Major Shareholders OGL has been verified as a black-owned level 3 BBBEE contributor

12. How has Oceana Transformed? Black Management & Control - % (Board of Directors) 199520052010 12,5% 40,0% 45,0% % Black Females 0,0% 0,0% 18,0%* *Currently, 27,3% OGL has been verified as a black-owned level 3 BBBEE contributor

13. How has Oceana Transformed? Employment Equity - % (black representation) 20052010 Senior Management 10,0% 26,0% Middle Management 38,0% 50,0% Junior Management 75,0% 82,0% OGL has been verified as a black-owned level 3 BBBEE contributor

14. How has Oceana Transformed? Skills Development Spend 200620105yr Cumulative Rand value: all staff R4,1m R7,8m R26,3m Rand value: black staff R3,6mR6,4mR22,0m % of training spend: 87,8% 82,1% 83,7% black staff OGL has been verified as a black-owned level 3 BBBEE contributor

15. How has Oceana Transformed? Procurement spend on BEE companies 200620105yr Cumulative Rand value R536,1m R827,2m R3,1b % Spend 65,81% 70,3% 62% OGL has been verified as a black-owned level 3 BBBEE contributor

16. How has Oceana Transformed? Enterprise Development Spend 200620105yr Cumulative Rand value R79,4m R27,3m R207,6m Joint ventures 22 25 n/a Supply agreements 103 72 n/a OGL has been verified as a black-owned level 3 BBBEE contributor

17. How has Oceana Transformed? • CSI Spend • 200620105 yr Cumulative • Total CSI R3,3m R2,4m R13,4m • (SA only) OGL has been verified as a black-owned level 3 BBBEE contributor

18. Further Empowerment Initiatives • An important provider of food security in South Africa and Africa • (protein footprint) • 535,000cansof canned fish consumed every day of the year, which • equates to an estimated 1,9 millionservings per day in SA; • An estimated 1,4 million servingsof horse mackerel per day in Africa • Main target market is consumers in the lower Living Standards Measure • (LSM) bracket OGL has been verified as a black-owned level 3 BBBEE contributor

19. Further Empowerment Initiatives • An important provider of food security in SA(protein footprint) • Employee Share Scheme • Khula Trust, formed in 2006, owns 14,2m shares in the Oceana Group • equating to 11,9% of the shareholding • At current share price, the Accrued Capital Value to employees net of • debt equals R343m • Total current employee beneficiaries is 2,003 • Average accrued capital value per employee equals R171,000 OGL has been verified as a black-owned level 3 BBBEE contributor

20. Further Empowerment Initiatives • An important provider of food security in SA (protein footprint) • Employee Share Scheme • Provision of housing to employees at a cost of R6m • Lamberts Bay • 30 houses • Hout Bay • 58 cottages and 24 flats • St Helena Bay / Laingville • 45 plots • 50 houses OGL has been verified as a black-owned level 3 BBBEE contributor

21. Further Empowerment Initiatives • Food safety (protein footprint) • Employee Share Scheme • Provision of housing • Investment made in respect of “South Africanisation” of Russian • vessel, the Desert Diamond • R3,372,924 for training and development • SA crew increased from 32% in 2003 to 66% in 2011. OGL has been verified as a black-owned level 3 BBBEE contributor

22. Transformation of the Oceana Group Oceana Group is now ... a black-owned Level 3 BBBEE Contributor OGL has been verified as a black-owned level 3 BBBEE contributor

23. The Way Forward • We would respectfully ask of DAFF, as a precursor to the development of a fishing charter and the setting of any future industry-specific transformation goals, that it: • Adopts the BBBEE Codes of Good Practice in ALL policies • DAFF’s current approach to assessing transformation - • Is narrow and only measures the percentage black ownership and management and fails to recognise broad-based transformation initiatives • Pre-dates the 2007 change in legislation on B-BBEE • Is contrary to government’s stated strategy, including the New Growth • Path • Publishes the results of the Performance Review process specific to the CURRENT LEVEL OF BBBEE TRANSFORMATION within the fishing industry OGL has been verified as a black-owned level 3 BBBEE contributor

24. Thank You!