Management of Social, Ethics and Transformation in Afrox

1. Management of Social, Ethics and Transformation in Afrox July 2013

2. The Companies Act & King III requirements

3. The Companies Act: Social and Ethics committee should be Implement by 1 May 2012 • KING III: • Ethical leadership & corporate citizenship • Compliance with laws, codes, rules & standards • Governing stakeholder relationships • Principle 8.1. – Stakeholder perceptions • Principle 8.2. – Manage stakeholder relationships • Princiople8.3. - balance all stakeholder groupings • Principle 8.5. - Transparency in communication • Integrated reporting • 9.1. – 9.3 – refer detail slide • COMPANIES ACT: • Stakeholder governance model in SA • (Not just shareholders – also refer King III) • To Monitor the companies activities, having regard to relevant legislation, to other legal requirements, or prevailing codes of best practice • To draw matters within it’s mandate to the attention of the board • To report to shareholders at the AGM • Scope of matters – Detail from ACTS • Social and economic development • Good corporate citizenship • Environment, health and public safety • Consumer relationships • Labour and employment

4. Social and Ethics Committee Approach

5. Vision, Strategy and policy May 2013

6. Corporate Responsibility Vision • At African Oxygen Limited (Afrox) we are accountable for our actions and strive to be transparent in all decisions and activities that may impact the environment and society in general. • Everything we do is based on integrity, honesty and equality and we have great respect for all stakeholder interests, the rule of law, human rights, and international standards of behavior.

7. Corporate Responsibility Strategy - Draft • At Afrox we are seen as a leader in Corporate Responsibility that creates shared value. We contribute to sustainable wellbeing and economic growth for our company, society and the environment… • We ensure that we have the right culture and leadership making corporate responsibility core to our values and the way we do business. • We have good governance in all our processes, have the highest standards of integrity and will maintain an ethical relationship of responsibility between the company and the society in which we operate. • We show our commitment to social and environmental considerations in our decision-making and are accountable for the impacts of our decisions and activities. • We support the development and transformation goals of the South African Government and align both local and global legislative and other requirements thus ensuring our good standing as a responsible corporate citizen. We maintain our level 3 BBBEE rating and our inclusion in the SRI index and other socially responsible indices and show our support for the UNGC 10 principles • We consider the interests of all stakeholders when deciding on the best interest of the company. We are a total solutions partner to our stakeholders. • We have measurable CR policies and will follow a rigorous reporting and review cycle and will have specific metrics associated with each CR goal. This will culminate in the annual Sustainability report.

9. Economic development Market presence BBBEE position in market Spend on local suppliers Localisation Community development Donations & sponsorships Consumer relations Sustainability reporting and communications Transformation / Employment equity Decent work - GES Employee health & Wellness Education of employees Corruption prevention Consumer protection King III JSE SRI criteria for ethics Federal Sentencing guidelines SACEI Index Environmental impact Employee Safety Public health & safety

10. Corporate Responsibility Policy

11. STRUCTURE

12. Linde Corporate Responsibility organisationGovernance structures

13. Economic Sustainability GM Risk & Strategy Social Environment CSR Manager Environmental Sustainability GM SHEQ Workplace Sustainability GM HR Ethics & Compliance Company Secretary Afrox Social, Ethics & Transformation (SET) Sub-committee & working committees Co-ordinating DRI: Provides feedback to Linde SET BOARD Committee (Focus on Sustainability) Chairman: Dr Khotso Mokhele 3 Independent Non- exec board members 3 Internal Committee members Coordinating DRI CSR Manager Quarterly Updates “deep dive” per topic SET WORKING Committee (Focus on Sustainability) Integration with business

14. Linde Corporate Responsibility Roadmap Foundation Standard Advanced Leading    Focus on risk management Scope of CR manage-ment: own operations CR reporting in acco-rdance with interna-tional standards Global KPIs and data management systems for all CR areas Quantitativetargets for all CR focus areas Solid management of stakeholder enquiries Advanced reporting (GRI A+, Advanced Level UNGC) Focus extended on sustainability opportunities Inclusion in main CR ratings Scope extended on suppliers and customers Active stakeholder inclusion Integration of CR in business strategy and financial reporting Collective action with stakeholders on high priority issues High scoring in CR rankings and ratings CR as a differentiator in business Compliance with laws Management of high-risk issues Reacting on stakeholder enquiries Basic CR reporting                    in place; in progress; beyond reach with current set-up

15. CR roadmapCR Management (1) Basic Standard Advanced Leading  = in place; = in progress; = not in place

16. CR roadmapCR Management (2) Basic Standard Advanced Leading  = in place; = in progress; = not in place

17. EXECUTE & REPORT

18. Integrated reporting Sustainability report content used

19. Opportunities • Ongoing management of day to day operation • with a Sustainability lens