ABOUT APRIO

1. Preparing and Implementing an effectiveIssue Management Programme:….the aprio and akkanto way….

2. ABOUT APRIO • APRIO is an independent operator, 100% South African -owned, with ground support in Johannesburg and Cape Town • APRIO has a superb media network and a good knowledge of the investment funds, analysts and media operating in Johannesburg and Cape Town • Aprio has been active on numerous South African transactions as well as issue management projects. These include: • Xstrata’s (Aprio) proposal to merge with Anglo American; • Xstrata (Aprio) and Glencore’s proposed merger; • ArcelorMittal’s (Aprio) dispute with Kumba Iron Ore, and • Walmart’s (Aprio) offer to acquire Massmart in South Africa. • APRIO has formed a working relationship with Brussels - based strategic communications firm, akkanto

3. ABOUT akkanto • Independent communication agency specialized in strategic consulting, Brussels, Belgium • Strong track record in managing crisis situations and helping clients prepare for crisis • 7 senior partners • Turnover 2010: 4,448 million EUR

4. CRISIS MANAGEMENT REFERENCES • Quick, 1998 – Dioxin crisis • Husqvarna, 2004 – explosion at Ghislenghien (24 casualties) • Merck Sharp & Dohme, 2005 – withdrawal VIOXX • SWIFT, 2006 – public investigations into protection of confidential data • Mattel, 2007-2008 – product recall due to presence of lead paint and loose parts in toys • KBC, 2008 – theft of clients' data in Czech Republic • CERAN, 2009 – children contaminated with A/H1N1 • Infrabel, 2010 - in-house support train crash (19 casualties) • Unilever, 2001-2010 – various product recalls (Lipton Ice Tea, Amora, silent recalls, etc.) • Saint Gobain, 2010 – Gyproc • Eternit/Etex, 2006-2011 – asbestos issue • Fluxys, 2010-2011 – trial Ghislenghien explosion • [Company], 2011 – suicide employee

5. TYPES OF SUPPORT CRISIS PRE-CRISIS • Consultation before the crisis hits • Analysecurrent crisis preparedness • Weaknesses • Potential improvements • Prepare crisis communication • Plan and manual • Tools • Raise awareness among management and crisis teams • Provide the opportunity to test existing practices and procedures • Consultation in crisis situations • Help determine the course of action to be addressed through communication • Support teams to develop communication initiatives • Prepare spokesperson • Guarantee permanent availability • Observe and analyze crisis communication management and propose recommendations PROACTIVE REACTIVE+ PROACTIVE

6. CRISIS PREPAREDNESS PRE-CRISIS Analysis of currentsituation Managingissues andbeing prepared for a crisis ToolDevelopment Exercises Training

7. ANALYSIS - EXISTING PROCEDURES • Group discussion and management interviews to visualisepotential incidents (impact versus probability): identify and rank potential crisis scenarios • Analysis of existing documents (manual, plan) and procedures (role description, responsibilities, team composition) • Interactions between teams – information and validation flows • Team composition (crisis management versus Communication management) • Comprehensibility documents • Link with legislation (local authorities and emergency services) • Recommendations and action plan Board Chief Executive Officer Head of other affected groups Head of Stakeholder Relations / Comms CrisisExecutive CrisisExecutive StakeholderRelations / Comms Functional LineManagement Local CommandTeam

8. CRISIS MANUAL PRE-CRISIS: TOOL DEVELOPMENT • Development of documents, procedures, tools & templates • Centralize existing information of internal procedures • Visualiseprocedures • Role distribution and responsibilities • Crisis manual/crisis plan

9. CRISIS PREPAREDNESS TRAINING • Raise participants’ awareness of importance of crisis preparedness • Create a team-building experience • Exchange experiences in preparing and managing crises • Develop participants’ ability to handle media relations • Develop a common approach for crisis management • Define each individual’s role in a crisis and back-ups

10. WALK THROUGH EXERCISES • Exercise where participants learn how to use their crisis manual and the crisis tools • Step by step scenario • Debriefing moments to evaluate the team’s performance Walk-through agenda (approx 2.5 hours) 09h00 Welcome09h05 Interactive session - Individuals will be asked how they view their role in a crisis situation09h20 Roles and responsibilities - Role and organisation of team leaders in crisis - Review individual functions - Review cascading responsibilities09h35 Review tools09h50 ‘Intermezzo’ - Case study10h05 Walk-through crisis scenario - Interactive session10h50 Wrap up: Do’s and don’ts11h00 Ends

11. ACTIVATION EXERCISE • Exercise focusing on the alert phase – the first 45 minutes of a crisiswhere teams and procedures are activated • Testing the crucial first moments of a crisis • Specific attention is paid to • information flows • correctuse of tools • Less focused on communication output (releases, stakeholders) • Two exercises in half a day

12. DESKTOP CRISISEXERCISE • Crisis simulation in a controlled environment during which participants • are confronted by a variety of stakeholders who want to give an opinion on the crisis or who will request information • must protect the company’s reputation on the basis of internal procedures • Realistic scenario and stakeholders interventions • Real-time and no outside help

13. DESKTOP CRISISEXERCISE • EVALUATION, OBSERVATION AND REPORTING • Observers assess each group during the session without intervening. • They observe the way in which the group acts and reacts based on 5 categories: management of the team, attitude, decision-taking, management of information and production of an output. • The total score for each category is shown in a diagram, visualising the performance of the group in each category.

14. OPERATIONAL CRISIS SIMULATION Simulation of a potential crisis to see how well information is transferred from different departments to the communication department and vice-versa • Objectives • Test, evaluate and improve the communication process and the crisis management at the localand corporate level • Prepare the spokesperson(s) and the internal stakeholders for a crisis • Same ‘rules of the game’ as for desktop crisis exercise

15. SUPPORT DURING A CRISIS - + STAKEHOLDERS’ MAPPING& Ally Adversary CRISIS COMMUNICATION STRATEGY(see slide 22) Detractor Sympathetic

16. SUPPORT DURING A CRISIS HOLDING STATEMENT A short written statement you prepare to answer questions re-actively in the beginning of a crisis PRESS RELEASE A more elaborated statement you send out pro-actively to the press

17. SUPPORT DURING A CRISIS Press statements – internal statements Product recall CRISISMANAGEMENT Call centers

18. CRISIS MANAGEMENT – PRESS MONITORING SUPPORT DURING A CRISIS 4 types of media monitoring

19. SUPPORT DURING A CRISIS SOCIAL MEDIA MATRIX Pre-crisis Crisis Post-crisis • crisis blog activated • monitoring blogosphere/ Twitter/forums through advanced search engine Radian6 (picking up over 85% of online conversations) • reach out to key bloggers • maintain corporate site • crisis blog dormant and ready to go • continuous relationships with key bloggers • crisis blog deactivated • integration of useful information on crisis into corporate site • continuous social media monitoring in case of lingering issues Crisis team monitors Blogs, Twitter, Social Networks and Forums

20. APPENDIX

21. COMPOSITION OF A CRISIS MANAGEMENT TEAM = able to select the most competent crisis management team

22. Reinforcement RELATED TO THE TYPE OF CRISIS EXAMPLE: CRISIS RESPONSE STRATEGIES ↳TYPE: Rumour Accident/Victim crises (no history) ↳TYPE: Accident crises (history) Human-error product harm/ accidents Organizational misdeeds Preventable ↳TYPE: Challenges (unwarranted) Rumour EGO CENTRIC Natural disaster, Rumour, Workplace violence, Malevolence Build positive connection between organisation & stakeholders + Do not forget, credibility & prior reputation of a company are components of crisis response.

23. HOW A GOOD MANAGER REACTS TO A CRISIS PROVIDE PERSPECTIVE !& BE EMPATHIC Manage expectations – don’t alarm people but don’t be afraid to speak to the magnitude of the situation Take a moment to figure what is going on – impose order on a chaotic situation Demonstrate control – you don’t control the disaster but can control the response Act promptly, not hurriedly – provide direction in a timely fashion Be flexible – be able to adapt rapidly

24. When an organisation is damaged as a result of the weather or “acts of God” such as earthquakes, tornados, floods, hurricanes, and bad storms. CRISIS TYPES (1) • Natural disaster • Workplace violence When an employee or former employee commits violence against other employees on organisational grounds. • Rumours When false or misleading information is purposefully circulated about an organisation or its products in order to harm the organisation. • Malevolence When some outside actor or opponent employs extreme tactics to attack the organisation, such as product tampering, kidnapping, terrorism, or computer hacking. • Challenges When the organisation is confronted by discontented stakeholders with claims that it is operating in an inappropriate manner.

25. CRISIS TYPES (2) Technical-error accidents When the technology utilized or supplied by the organisation fails and causes an industrial accident. • Technical-error product harm When the technology utilized or supplied by the organisation fails and results in a defect or potentially harmful product. • Human-error product harm When human error results in a defect or potentially harmful product. • Human-error accidents When human error results in an accident. • Organizational misdeeds When management takes actions it knows may place stakeholders at risk or knowingly violates the law.