GRADUATE COMPENSATION REVIEW

1. GRADUATE COMPENSATION REVIEW Findings May 2006

2. Contents • PARTICIPATING COMPANIES: 2006 • PURPOSE • RESEARCH METHODOLOGY • FUNCTIONAL AREAS COMPANIES RECRUIT FOR • 2006 SALARY DATA: POSITIONS FILLED • 2007 PROJECTIONS: POSITIONS TO BE FILLED • GRADUATE VACANCIES • GRADUATE PACKAGES & OPPORUNTITIES • Benchmarks / Structure / Benefits • Overseas Opportunities • Further Education • DISCUSSION

3. Accenture (South Africa) Adams and Adams AGSA BMW South Africa British American Tobacco South Africa Burlington Strategy Advisors Cell C DaimlerChrysler Deloitte Deloitte Assurance Edcon First National Bank Foschini Retail Group Hannover Reinsurance Hatch Africa Pty Ltd Hillside Aluminium Ingwe Collieries Ltd (BHP Billiton) Investec Bank Janssen-Cilag SA Johnson & Johnson Medical Johnson & Johnson JP Morgan KPMG Kumba Resources Liberty Life L'Oreal South Africa McKinsey & Company Murray & Roberts National Brands Limited National Treasury Nestle SA Old Mutual South Africa Palabora Mining Company PKF (Jhb) Inc Samancor Manganese (BHP Billiton) SANLAM Sasol Ltd Shell South Africa Shoprite Checkers South African Breweries Standard Bank, Corporate and Investment Banking Standard Bank, Retail Telkom SA Truworths UCS Solutions Unilever South Africa Volkswagen of South Africa Participating Companies: 2006

4. Purpose • The purpose of this research is to review the latest trends in graduate salaries across our member companies. • This review includes comparative analyses by industry and functional areas. • In addition we look at trends related to market demand, salary structuring, benefits, travel and further education. • This research was piloted in 2004 and, where possible, year on year comparisons are provided.

5. RESEARCH METHODOLOGY

6. Electronic Survey • The SAGRA 2006 Compensation Review was conducted as an online survey and delivered via e-mail. • The survey was launched on 3 April and 52 member companies were invited to participate. • In addition to emails, the members were contacted telephonically to encourage participation. • Participation has improved from the 2005 study, but the objective remains to ensure that all SAGRA members are involved in the future.

7. E-mailers A sample of the e-mailer developed to invite participation in the survey.

8. On-lineSurvey A sample of the on-line survey format.

9. Survey Demographics Participation by Industry Sector 2005

10. Survey Demographics Participation by Industry Sector 2006

11. FUNCTIONAL AREAS COMPANIES RECRUIT FOR

12. Functional Areas Companies Recruit For Change in rank position from 2005

13. 2006 SALARY DATA: GRADUATE POSITIONS FILLED Positions by Function and Total Costs to Company

15. GRADUATE PACKAGES Benchmarks / Structure / Benefits

16. At Which Position Are Graduate Salaries Benchmarked? • Benchmark with industry we are in : • No specific quartile aimed at, rather form a "Rand" amount range and pay accordingly • Fixed appointment scales for graduates • Common interest meeting between big 4 accounting/auditing firms • Assurance TIPP trainee rates for first year are agreed on an industry basis

17. How Are Packages Structured? 2006 2005 Unchanged from 2005 Review Of Graduate Salaries: More Than Once A Year? Fewer companies reviewing more than once a year than in 2005

18. What Are Graduate Salary Increases Based On? 2006 2005 • Other: • Performance, market, qualification and experience • Market performance and qualifications • If converted to permanent at the end of their fixed term contract, will be reviewed • Academic achievement Increase in market related increases compared to 2005. Offering Sign On Bonuses To Graduates? Unchanged from 2005.

19. Pay Premiums For Higher Qualifications? 2006 2005 • Percentage difference for Honours degrees? Unchanged from 2005 • Percentage difference for Masters degrees?

20. Additional Benefits Gradates Receive Within Cost to Company?

21. Benefit Options

22. Benefit Rand Value per Month

23. GRADUATE OPPORTUNITIES Overseas Opportunities

24. Offer Overseas Opportunities To Graduates? 2006 2005 • Other: • Training and international experience • Third year graduate programme exposure • On the job training/development • Globalise our graduates • Global employment opportunities • Client engagements Unchanged from 2005 What Is The Primary Purpose Of Overseas Opportunities?

25. Is This Primarily Based On Individual Performance? • Other: • Varies accordingly to individual • Varies according to business needs • Depends on experience & skills needed • Dependent on resourcing opportunities, graduate potential and performance • 6+ years • Year 1, 2 or 3 How Soon After Joining Do Graduates Typically Go Overseas?

26. GRADUATE OPPORTUNITIES Further Education

27. Pay In Full (or in part) For Further Study? Same as last year. Must The Further Study Be Relevant To Company/Functional Area? If You Do Pay For Further Study, Is It for Full Time Or Part Time?

28. What Criteria Are Used In Deciding To Sponsor Further Education? This was a comment question, companies could leave blank. Also a company may have offered multiple responses e.g. Relevance, Performance & Career Path. Which would have provided 3 responses. Is There A Service Obligation Once Studies Are Completed? No major change from 2005.

29. If yes, please indicate time in months?

30. DISCUSSION