Broad Based Black Economic Empowerment Verification Certificate. A Consolidated Verification Certificate Issued to. Raumix Aggregates (Pty) Ltd

Transcription

1 Broad Based Black Economic Empowerment Verification Certificate A Consolidated Verification Certificate Issued to Raumix Aggregates (Pty) Ltd Level 4 Contributor Measured Entity (Full List of Entities Listed on Page of Certificate) Company Name Registration Number VAT Number Address Raumix Aggregates (Pty) Ltd 1999/013981/ Leopard Creek Building, The Greens Office Park, 16 Charles de Gaulle Cresent, Highveld Centurion BBBEE Status Level Level 4 BEE Status BEE Procurement Recognition Levels Element Points Obtained EO: 0.15 points; MC:.4 points; EE: 3.96 points; SD: 5.7 points; PP: points; ED: 15 points; SED:.85 points Level Qualification % Black Ownership Value Adding Vendor BEE Procurement Recognition 33.87% Black Ownership; 6.75% Black Women Ownership Points 135% Yes 85 but < % 15% 3 75 but < % Issue Date 08/10/ but < % Expiry Date 07/10/ but < 65 80% Certificate Number ELC4151GENBB 6 45 but < 55 60% Version 7 40 but < 45 50% Applicable Scorecard Codes Generic 8 30 but < 40 10% Applicable BBBEE Codes Generic Codes Gazetted on 9 February 007 NonCompliant <30 0% EmpowerLogic (Pty) Ltd Reg. No. : 1995/00053/07 BBBEE Verification Agency Enquiries Tel: Fax: Per E Ackroyd CA(SA) Member Verification Committee verification@empowerlogic.co.za SANAS Accredited BVA018 This certificate is the result of an independent and impartial verification of the BBBEE status of the measured entity measured against the Codes of Good Practice on Broad Based Black Economic Empowerment. The objective of our verification is to verify the validity and accuracy of the BBBEE status represented by the measured entity. EmpowerLogic is not responsible for ensuring completeness of information provided to support the BBBEE status.

2 Broad Based Black Economic Empowerment Verification Certificate A Consolidated Verification Certificate issued to Raumix Aggregates (Pty) Ltd Certificate Number: ELC4151GENBB BBBEE Status: Level 4 Contributor Value Adding Vendor Entities Included in the Consolidated Verification Certificate Company Name Registration Number VAT Number Aliwal Dolorite Quarries (Pty) Ltd 1976/003159/ Willow Quarries (Pty) Ltd 1991/00037/ Queenstown Quarries (Pty) Ltd 1996/006053/ Canyon Rock (Pty) Ltd 000/07136/ Petra Quarry (Pty) Ltd 000/01103/ EmpowerLogic (Pty) Ltd Reg. No. : 1995/00053/07 BBBEE Verification Agency Per E Ackroyd CA(SA) Member Verification Committee This certificate is the result of an independent and impartial verification of the BBBEE status of the measured entity measured against the Codes of Good Practice on Broad Based Black Economic Empowerment. The objective of our verification is to verify the validity and accuracy of the BBBEE status represented by the measured entity. EmpowerLogic is not responsible for ensuring completeness of information provided to support the BBBEE status. Certificate Page of

3 Table of Contents : 1 Introduction : Broad Based BEE Balanced Scorecard : 3 Scorecard Summary: 4 Sections : Direct Empowerment : Equity Ownership : 4.1. Management Control : HR & Employment Equity : 4..1 Employment Equity : 4.. Skills : 4.3 Indirect Empowerment : Preferential Procurement : 4.3. Enterprise : 4.4 Residual : SocioEconomic Appendices : A. Broad Based Black Economic Empowerment Profile A B. Broad Based Black Economic Empowerment Scorecard B EmpowerLogic

4 1. Introduction : Raumix Aggregates (Pty) Ltd's Broad Based Black Economic Empowerment verification has been based on the Codes of Good Practice for Broad Based Black Economic Empowerment Gazetted on 9 February 007. All BEE statistics (especially Supplier information) was collated in a comprehensive information gathering initiative to allow accurate scoring on all objectives and themes. With the increased emphasis by Government on broad based BEE, such figures must remain accurate and easily available for future measurement and reporting initiatives. The measurement period used for all financial information is 1 March 01 to 8 February 013. This report is the result of an independent and impartial verification of the BBBEE status of the measured entity measured against the Codes of Good Practice on Broad Based Black Economic Empowerment. The objective of our verification is to verify the validity and accuracy of the BBBEE status represented by the measured entity. EmpowerLogic is not responsible for ensuring completeness of information provided to support the BBBEE status. All the information contained in this document has been collected from sources within Raumix Aggregates (Pty) Ltd and believed to be accurate and reliable at the time of the measurement. All referencing to Black individuals is based on the generic term used to refer to African (A), Indian (I), Coloured (C) and Chinese (C) South African citizens. The verification for Raumix Aggregates was based on the following elements: o Equity Ownership % flow of economic benefits and voting rights; o Management Control % black persons in executive management and/ or executive board and board committees; o Employment Equity Weighted employment equity analysis; o Skills development Skills development expenditure as a proportion of total payroll leviable amount; o Preferential Procurement Weighted Preferential Procurement spend based on the BEE Procurement Recognition Levels; o Enterprise Cumulative recoverable and nonrecoverable contributions to Enterprise as a % of NPAT; o Socio Economic Cumulative nonrecoverable contributions to Social as a % of NPAT. EmpowerLogic 3

5 The following diagram illustrates the process that was followed, as well as the documentation involved in each part of the process : EmpowerLogic 1 Proposal sent to Client 4 Information Assessment (on site verification) 6 Preliminary Verification Report Sent to Measured Entity 8 Verification Report and Certificate Measured Entity Verification Acceptance Yes KickOff CloseOut Workshop Meeting 3 Completed Measurement Information Pack ed e / faxed to Empowerlogic and Additional Documentation Prepared 5 Measured Entity has 5 days to submit outstanding documentation Verification Outcome Accepted 7 Accept or Lodge Appeal within 5 days Appeal Lodged Communication Media Measured entity fax signed quote to Empowerlogic Measured Entity e or fax completed MIP and appeals to verification@empowerlogic.co.za or Proposal Signed Proposal Measurement Information Pack Verification Methodology and OnSite Schedule Close Out Meeting Template Provisional Verification report Written Appeal Verification Certificate and Report The total score of a company will be used to rank them according to their progress in achieving broadbased black economic empowerment. The total points that a company earn are set out as follows by the Codes of Good Practice: Level Qualification Procurement Recognition % Level 1 Level Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Non Compliant 100 Points 85 but < but < but < but < but < but < but < 40 <30 135% 15% 110% 100% 80% 60% 50% 10% 0% EmpowerLogic 4

6 . Codes Generic Scorecard Core Element Direct Empowerment Human Resource Indirect Empowerment Residual Element Equity Ownership Management Control Employment Equity Skills Preferential Procurement Enterprise Socio Economic Indicator Exercisable Voting Rights by Black People Exercisable Voting Rights by Black Women Economic Interest (EI) to which Black People are entitled EI to which Black Women are entitled EI to which BDG's, EOS, BBOS and Coop's are entitled Ownership Fulfillment Net Value Bonus Point Exercisable Voting Rights of Black Board Members using the Adjusted Recognition for Gender (ARG) Black Executive Directors using the ARG % Black Senior Top Management using the ARG % Black Other Top Management using ARG % Bonus Point: Black Independent NonExecutive Board Members % Black Disabled People using the ARG % Black Senior Management using the ARG % Black Middle Management using the Adjusted Recognition for % Gender Black Junior Management using the ARG % Bonus Point: Meeting or exceeding all EAP targets above % Skills on Black Employees using the ARG as a % of Leviable Amount Skills on Black Employees disabilities using the ARG as a % of Leviable Amount Procurement Expenditure Black Owned > 50% Procurement Expenditure Black Women Owned > 30% Average Annual Value of all Enterprise Contributions as a % of NPAT Average Annual Value of all SocioEconomic Contributions as a % of NPAT Involvement in the ownership by Black New Entrants.00 Involvement in the ownership by: EOS, BBOS and Coops 1.00 Number of Black Employees participating in Learnerships using the ARG as a % of Total Employees Weighted BEE Procurement Expenditure All Suppliers Weighted BEE Procurement Expenditure Qualifying Small Enterprises & Exempted Micro Enterprises Weight % 10.0% 5.0% 10.0%.5% Yes 0.0% 10.0% 10.0% 50.0% 3.0% 0.3% 5.0% 70.0% 15.0% 1.0% 8.0% 3.00% 1.0% EmpowerLogic 5

7 3. Scorecard Summary: Raumix Aggregates is classified as a Level 4 contributor towards Broad Based Black Economic Empowerment. Description Weighting Overall BEE Score Direct Empowerment Equity Ownership Management Control Human Resource Employment Equity Skills Indirect Empowerment Preferential Procurement 0.00 Enterprise Residual 5.00 SocioEconomic 5.00 % Score for Indicator 66.97% 75.16% % 4.00% 3.19% 6.37% 38.01% 91.18% 84.56% % 56.99% 56.99% Points Status per Element Equity Ownership 10% Management Control Employment Equity 100% 80% 60% 40% 0% 0% Enterprise Preferential Procurement Skills SocioEconomic EmpowerLogic 6

8 4. Sections : 4.1 Direct Empowerment : Equity Ownership : Level 3 Level 1 Necessary shareholding information that was found in the Measurement Information Pack, could be confirmed with the share certificate(s), share register(s) and/or other formal documentation. Table : Raumix Aggregates (Pty) Ltd Shareholders: Shareholder(s) Detail % Share Raubex Group Limited % Total % Table : Raumix Aggregates (Pty) Ltd Effective Black Shareholding Description Effective Black Ownership in Measured Entity using the Flow Through Principle % by Black People 9.64% 9.64% % 9.64% Black Ownership calculated using the Exclusion Principle and Modified Flow Through Principle 33.87% Table : Equity Ownership Scorecard Indicator Weight Actual Result Points Exercisable Voting Rights by Black People % 6.00% % 3.00 Exercisable Voting Rights by Black Women % 10% 68.15% 1.36 Economic Interest to which Black People are entitled Economic Interest to which Black Women are entitled Economic Interest to which BDG's, EOS, BBOS and Coop's are entitled Ownership Fulfillment A Net Value B EI using Normal Flow Through Bonus Points: Involvement in the ownership by Black New Entrants Involvement in the ownership by: EOS, BBOS and Coops 33.87% 6.75% 4.78% 8.39% 67.46%.5% % Total Yes 33.87% 4.79% 4.78% 5% 10% 0% 5% % Yes % 10% % % 47.88% 10% 47.75% EmpowerLogic 7

9 Economic Interest by Race Black, 33.87% White / NSA, 66.13% Voting Rights by Race Black, 33.9% White / NSA, 66.08% Raumix Aggregates meets the definition of a Level 1 contributor towards broad based black economic empowerment in terms of the equity ownership of the company. EmpowerLogic 8

10 4.1. Management Control : NonCompliant Table : Listing of Directors and Executives CEO T.G. Wiese W M 0% FD Designation Other Executive Directors NonDirectors (with Executive decision making capability) NonExecutive Directors R.L. Shedlock C.K. Aldridge Gavin Robinson Hein Coetzee Stefan Pieterse F. Kenney A M 0% U. Adonis Name Senior Top Management Race (A/I/C W/NSA) W W W W W Gender (M/F) M 0% M M M M % Votes 0% C F 0% A = African, I = Indian, C = Coloured, W = White, NSA = NonSouth African Representation of Directors African, 1 Indian, 0 White, 3 Coloured, 1 EmpowerLogic 9

11 The indicators for Management Control uses the Adjusted Recognition for Gender (ARG) principle being: A = ( B/F ) + C B = black employees in measurement category F = ARG Factor (see table below) C = black women employees in measurement category (limited to 50% of the target), therefore the lower of C1 and C in table below Table 4.1..: Adjusted Recognition for Gender Measurement Category Total in Cat Black People ( B ) ARG Factor ( F ) Black Women ( C1 ) 50% of ( C ) ARG ( A ) Exercisable Voting Rights of Black Board Members using the Adjusted Recognition for Gender 100% 50% 40% 0% 5% 40% Black Executive Directors using the Adjusted Recognition for Gender Black Senior Top Management using the Adjusted Recognition for Gender Black Other Top Management using the Adjusted Recognition for Gender Table : Management Control Scorecard Measurement Category Weight Actual with ARG Total in Cat Result Points Exercisable Voting Rights of Black Board Members using the Adjusted Recognition for Gender % % 50% 80%.40 Black Executive Directors using the Adjusted Recognition for Gender % 0% Black Senior Top Management using the Adjusted Recognition for Gender % 0% Black Other Top Management using the Adjusted Recognition for Gender Bonus Points: Black Independent NonExecutive Board Members 1.00 Total % 0% 40% 0%.40 Raumix Aggregates meets the definition of a NonCompliant contributor towards broad based black economic empowerment in terms of the management control of the company. EmpowerLogic 10

12 4. HR & Employment Equity : 4..1 Employment Equity: Level 8 NonCompliant Table : Employment Equity Males Females Occupational Level African Coloured Indian Non Black SubTotal African Coloured Indian Non Black SubTotal Total Top Management Senior Management Professionals, Specialists & Mid Management Skilled Workers, Supervisors & Junior Management Semiskilled & Discretionary Decision Making Unskilled Total Employees Disabled The indicators for Employment Equity uses the Adjusted Recognition for Gender (ARG) principle being: A = ( B/F ) + C B = black employees in measurement category F = ARG Factor (see table below) C = black women employees in measurement category (limited to 50% of the target), therefore the lower of C1 and C in table below Table 4..1.: Adjusted Recognition for Gender Measurement Category Disabled People (measured vs. total employees) Total in Cat 79 Black People ( B ) ARG Factor ( F ) Black Women ( C1 ) 3% % of ( C ) 4.19 ARG ( A ) Senior Management 11 60% Professionals, Specialists & Mid Management 38 75% Skilled Workers, Supervisors & Junior Management 16 80% The subminimum of 40% of target is applied, therefore the indicators that do not achieve 40% of target after applying ARG are not awarded any points. Table : Employment Equity Scorecard Measurement Category Disabled People (measured vs. total employees) Weight Actual with ARG Total in Cat Result Sub min Applied Points % 6% Y Senior Management % 3% Y Professionals, Specialists & Mid Management Skilled Workers, Supervisors & Junior Management % 40% Y % 59% Y.34 Meeting or exceeding all EAP targets above % 0% Y Total EmpowerLogic 11

13 The allocation of the male and female employees in the various race groups are as follows: Employment Equity Profile Male Female Total per race No of employees Race African Coloured Indian Non Black (White & NSA) In terms of broad based black economic empowerment, the contribution of the various race groups to total employment is 80% African, % Coloured, 0% Indian and 19% White. The effective average representation of black people in the senior, middle and junior management levels of the company is 75%. The contribution of black people per race group in these three levels is summarised as follows: No of employees 100% 90% 80% 70% 60% 50% 40% 30% 0% 10% 0% Occupational Level Profile Senior Management Prof, Specialists & MidManagement Skilled Workers, Supervisors & Junior Management Race Non Black (White & NSA) Indian Coloured African The representation of the various race groups in senior, middle and junior management is 73% African, % Coloured, 0% Indian and 5% White. Profile of Management Levels Average Representation in Senior, Middle and Junior Management Non Black (White & NSA) 5% Indian 0% Coloured % African 73% Raumix Aggregates meets the definition of a NonCompliant contributor towards broad based black economic empowerment in terms of the employment equity of the company. EmpowerLogic 1

14 4.. Skills : Level 8 Skills Expenditure is classified in the categories listed in table below. All categories are included for skills development expenditure in Rands but category G is limited to 15% of overall spend. Categories B, C and D are included in the second section of the skills development scorecard measuring the number of learners in those categories. Table 4...1: Learning Programme Matrix Qualifying Contribution Category Delivery Mode Type A B C D Institutionbased theoretical instruction alone formally assessed by the institution Institutionbased theoretical instruction as well as some practical learning with an employer or in a simulated work environment formally assessed by the institution Recognised or registered structured experiential learning in the workplace that is required after the achievement of a qualification formally assessed by a statutory occupational or professional body Occupationallydirected instructional and work based learning programme that requires a formal contract formally assessed by an accredited body Institutional Instruction Mixed mode delivery with institutional instruction as well as supervised learning in an appropriate workplace or simulated work environment Structured learning in the workplace with mentoring or coaching Institutional instruction together with structured, supervised experiential learning in the workplace Learning Site Universities and colleges, schools, ABET providers Universities and colleges, schools, ABET providers and workplace Workplace Institution and workplace Learning Achievement Recognised theoretical knowledge resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning Theoretical knowledge and workplace experience with set requirements resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning Occupational or professional knowledge and experience formally recognised through registration or licensing Theoretical knowledge and workplace learning, resulting in the achievement of a SAQUA registered qualification, a certificate or similar occupational or professional qualification issued by an accredited or registered formal institution of learning E Occupationallydirected instructional and work based learning programme that does not require a formal contract formally assessed by an accredited body Structured, supervised experiential learning in the workplace which may include some institutional instruction Workplace and some Credits awarded for registered institutional as unit standards well as ABET providers F G Occupationallydirected informal instructional programmes Workbased informal programmes Structured information sharing or direct instruction involving workshops, seminars, conferences and short courses Informal training Institutions, conferences and meetings Workplace Continuing professional development, attendance certificates and credits against registered unit standards (in some instances) Increased understanding of job or work context or improved performance and skills EmpowerLogic 13

15 Quantifiable skills development expenditure could be identified for black employees for the period under review at the time of the measurement. The total cost of skills development for black people, adjusted using the gender recognition, (R56449) represents 1.45% of the total leviable amount out of a target of 3%. The indicators for Skills uses the Adjusted Recognition for Gender (ARG) principle being: A =( B/F ) + C B = skills development expenditure on black employees in measurement category F = ARG Factor (see table below) C = skills development on black women employees in measurement category (limited to 50% of the target), therefore the lower of C1 and C in table 4... below Table 4...: Adjusted Recognition for Gender Measurement Category Skills on Black Employees using the Adjusted Recognition for Gender as a % of Leviable Amount Skills on Black Employees with disabilities using the ARG as a % of Leviable Amount Number of Black Employees in Category B,C or D Programmes using the ARG as a % of Total Employees Denominator 38,845,788 38,845, % 0.30% 5.00% Black People ( B ) 687,178 ARG Factor ( F ) Black Women ( C1 ) 0,840 50% of ( C ) 58,687 58, ARG ( A ) 564,49 7 Table 4...3: Skills Scorecard Measurement Category Skills on Black Employees using the Adjusted Recognition for Gender as a % of Leviable Amount Skills on Black Employees with disabilities using the ARG as a % of Leviable Amount Number of Black Employees in Category B,C or D Programmes using the ARG as a % of Total Employees Total Weight Actual with ARG 564,49 Denominator 38,845, % ,845, % Result 48.43% % 46.59% Points % EmpowerLogic 14

16 The allocation of skills development expenditure incurred on all employees is represented by the following graph: Skills Split White / NSA % Black 78% 1,00,000 1,000, , , ,000 00,000 Skills Spend vs. 1,165, , ,178 58,687 0,840 Total Training (If Applicable) Black People Black Women Spend Of the total staff compliment of 79, which forms the baseline, 11 black learners on category B, C and D learning programmes were identified for the period under review. Learnerships and Category B, C and D Learning Programmes Number All Employees (If Applicable) Black People Black Women Raumix Aggregates meets the definition of a Level 8 contributor towards broad based black economic empowerment in terms of the skills development of the company. EmpowerLogic 15

17 4.3 Indirect Empowerment Preferential Procurement : Level Level 3 All goods and services procured by the measured entity, other than any portion specifically excluded is measurable in calculating the Total Measured Procurement Spend (TMPS). Table lists the items included in TMPS and table lists permissible exclusions. The following procurement is measurable within Total Measured Procurement Spend: Table : Total Measured Procurement Spend Description Cost of Sales Operational Expenditure Capital Expenditure Public Sector Procurement: all goods and services procured from organs of state and public entities listed in schedules and 3 to the Public Finance Management Act of 1998 Monopolistic Procurement: all goods and services procured from suppliers that enjoy a monopolistic position are included in TMPS. Only procurement for organs of state or public entities that enjoy a statutory or regulated monopoly as listed in table may be excluded Third Party Procurement: all procurement for a third party where the cost of that procurement is recorded as an expense in the measured entity's annual financial statements Labour Brokers and independent contractors Pension and medical aid contributions, excluding any portions of such payments which are a contribution to a capital investment of the employee Trade Commissions Imports other than those excluded under permissible exclusions in table Intragroup procurement: except where the procuring entity and the supplying entity form part of the same verification certificate The following lists the permissible exclusions from Total Measured Procurement Spend. Table : Permissible Exclusions Category A Taxation Public Sector Procurement B C D F Description All goods and services procured from organs of state and public entities listed in Schedule 1 of the PFMA Act of 1999 All goods and services from any organ of state or public entity that enjoys a statutory or regulated monopoly Salaries, wages, remunerations, and emoluments Pass Through Third Party Procurement where such procurement is not recorded as an expense in the measured entity's annual financial statements Empowerment Related Procurement E Imports Investments in or loans to an associated enterprise Investments, loans or donations qualifying for recognition under Enterprise or Socio Economic Imported capital goods or components for valueadded production in SA provided that there is no local production and that importing promotes further valueadded production in SA G H Imported goods and services which carry a different brand to the locally produced goods or services Imported goods and services that have different technical specifications to the locally produced goods or services. EmpowerLogic 16

18 The weighted BEE procurement spend constituted 81.59% of total measured procurement spend. The spend with suppliers in the different BBBEE status levels are listed below: Table : Weighted BEE Procurement per Level BBBEE Level R Value Recognition % Weighted BEE Procurement % Level One 15, % 335, % Level Two 19,633,15 15% 5,331, % Level Three 9,08, % 34,676,178 Level Four 56,035, % 65,303,493 Level Five 1,441,769 80% 1,15,168 Level Six 18,43,651 60% 1,488,956 Level Seven Level Eight Noncompliant 35,094,78 0% No Status Total 83,075 50% 433,177 6,74,868 10% 5,17,755 0% 750, ,51, ,534, % 3.5% 0.8% 10.7% 0.5% 3.6% 0.4% 3.0% 100.0% Preferential Procurement Spend with Suppliers classified i.t.o their BBBEE Status No Status 3% Level One 0% Level Two 11% Noncompliant 0% Level Three 17% Level Eight 4% Level Seven 0% Level Six 11% Level Five 1% Level Four 33% 160,000, ,000,000 10,000, ,000,000 80,000,000 60,000,000 40,000,000 0,000,000 Preferential Procurement Actual vs. 140,534,41 10,576,68 Weighted BEE Spend All Suppliers 4,144,748 5,837,77 Weighted BEE Spend QSE and EME 11,01,444 0,670,17 Procurement Spend Black Owned,155,465 13,780,145 Procurement Spend Black Women Owned Spend Raumix Aggregates meets the definition of a Level 3 contributor towards broad based black economic empowerment in terms of the preferential procurement of the company. EmpowerLogic 17

19 4.3. Enterprise Level 1 Enterprise means monetary or nonmonetary contributions made to beneficiary entities, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries. Beneficiaries are classified in table and Enterprise type contributions in table Table : Beneficiary Categories Category Description A B EME or QSE with 50+ Black Ownership Other Entities with 50%+ Black Ownership OR 5% Black Ownership and Level 6 or better Benefit Factor 15% 100% Table 4.3..: Qualifying Contribution Types Grant and Related Contributions Grant Contribution Direct Cost incurred Discounts in addition to normal business practice Overhead Costs incurred Loans and Related Contributions Interest Free Loan with no security requirements Standard Loan to Black Owned EME and QSE's Standard Loan to other Beneficiaries Guarantees Lower Interest Rate Equity Investments and Related Contributions Minority Investment in Black Owned EME and QSE's Minority Investment in other Enterprises Enterprise Investment with lower dividend to Financier Contributions made in the form of Human Resource Capacity Professional Services Rendered at no cost Professional Services Rendered at a discount Time of employees deployed in assisting beneficiaries Other Contributions Shorter payment periods Enterprise development initiatives (monetary investments or quantifiable nonmonetary support) were identified for the period under review at the time of the measurement. Table : Enterprise Contributions Qualifying Contribution Type Contribution Shorter payment periods,693,461 Total,693,461 Enterprise Split Shorter payment periods 100% Raumix Aggregates meets the definition of a Level 1 contributor towards broad based black economic empowerment in terms of the enterprise development of the company. EmpowerLogic 18

20 4.4 Residual SocioEconomic : Level 5 Level 5 SocioEconomic means monetary or nonmonetary contributions actually initiated and implemented in favor of beneficiaries with the specific objective of facilitating access to the economy for those beneficiaries. The full value of the contribution is recognisable if at least 75% of the value directly benefits black people, if it is less than 75% the % that benefits black people is recognisable. Programmes are classified in table and Contributions Types in table Table : SocioEconomic Programmes Category A B C D E Direct Cost incurred Community training, skills development for unemployed people and adult basic education and training Support of arts, cultural or sporting development programmes Table : Qualifying Contribution Types Grant Contribution Discounts in addition to normal business practice Professional Services Rendered at no cost Professional Services Rendered at a discount The following SocioEconomic initiatives were identified for the period under review. Table : SocioEconomic Contributions Initiative / Project Direct Cost incurred Support of healthcare and HIV/AIDS programmes Description Programmes for women, youth, people with disabilities, people living in rural areas support for education programmes, resources and materials at primary, secondary and tertiary education level as well as bursaries and scholarships Grant and Related Contributions Overhead Costs incurred Contributions made in the form of Human Resource Capacity Time of employees deployed in assisting beneficiaries Contribution 13,00 Grant Contribution 100,00 Total 3,040 SocioEconomic Split Community Training and Skills 11% Programmes 0% Health 3% Education 57% Raumix Aggregates meets the definition of a Level 5 contributor towards broad based black economic empowerment in terms of the SocioEconomic of the company. EmpowerLogic 19

21 Codes Generic BBBEE Profile Broad Based Black Economic Empowerment Score Level % Direct Empowerment 75.16% Human Resource 3.19% Indirect Empowerment 91.18% Residual 56.99% Ownership % Employment Equity 6.37% Preferential Procurement 84.56% SocioEconomic 56.99% Management Control 4% Skills 38.01% Enterprise 100% Level 1 Level Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Noncompliant >100% 100% 85% 75% 65% 55% 45% 40% 30% 0% EmpowerLogic BBBEE Profile

22 Objective Indicator Weight Actual Value Actual Base Result Points Broad Based Black Economic Empowerment Contribution % Objective : Ownership % 0.15 Equity Ownership Exercisable Voting Rights by Black People % % 6.00% % 3.00 Exercisable Voting Rights by Black Women % % 10.00% 68.15% 1.36 Economic Interest to which Black People are entitled % % 5.00% % 4.00 Economic Interest to which Black Women are entitled % % 10.00% 67.46% 1.35 Economic Interest to which BDG's, EOS, BBOS and Coop's are entitled % %.50% % 1.00 Ownership Fulfillment 1.00 Yes Yes Yes % 1.00 A Net Value 8.39% % 0.00% % B EI using Normal Flow Through 33.87% % 5.00% % Bonus Points: Involvement in the ownership by Black New Entrants % % 10.00% 47.88% 0.96 Involvement in the ownership by: EOS, BBOS and Coops % % 10.00% 47.75% 0.48 Objective : Management Control %.40 Management Control Exercisable Voting Rights of Black Board Members using the Adjusted Recognition for Gender % % 50.00% 80.00%.40 Black Executive Directors using the Adjusted Recognition for Gender % 0.00% Black Senior Top Management using the Adjusted Recognition for Gender % 0.00% Black Other Top Management using the Adjusted Recognition for Gender % 0.00% Bonus Points: Black Independent NonExecutive Board Members % 0.00% Objective : Employment Equity % 3.96 Employment Equity Black Disabled People using the Adjusted Recognition for Gender % 5.97% Black Senior Management using the Adjusted Recognition for Gender %.73% Black Middle Management using the Adjusted Recognition for Gender % 40.35% 1.61 Black Junior Management using the Adjusted Recognition for Gender % 58.53%.34 Bonus Points: Meeting or exceeding all EAP targets above % 0.00% Objective : Skills % 5.70 Skills Skills on Black Employees using the Adjusted Recognition for Gender as a % of Leviable Amount ,49 38,845, % 48.43%.91 Skills on Black Employees with disabilities using the ARG as a % of Leviable Amount ,845, % 0.00% Number of Black Employees in Category B,C or D Programmes using the ARG as a % of Total Employees % 46.59%.80 Objective : Preferential Procurement % Preferential Procurement Weighted BEE Procurement Expenditure All Suppliers ,534,41 17,51, % % 1.00 Weighted BEE Procurement Expenditure Qualifying Small Enterprises & Exempted Micro Enterprises ,144,748 17,51, % % 3.00 Procurement Expenditure Suppliers that are >50% Black Owned ,01,444 17,51, % 53.3% 1.60 Procurement Expenditure Suppliers that are >30% Black Women Owned.00,155,465 17,51, % 15.64% 0.31 Objective : Enterprise % Enterprise Average Annual Value of all Enterprise Contributions as a % of NPAT 15.00,693,461 39,137, % % Objective : Socio Economic %.85 SocioEconomic Codes Generic Scorecard Average Annual Value of all SocioEconomic Contributions as a % of NPAT ,040 39,137, % 56.99%.85 EmpowerLogic BBBEE Scorecard