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SAFLog Holdings (Pty) LtdSA Freight Logistics (Pty) Ltd

COMPANY PROFILE

STRICTLY PRIVATE AND CONFIDENTIAL

January 2018

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SAFLog Business OverviewProducts, services and executive profiles

Business of SAFLog

Rail freight logistics specialist with emphasis on management of inter-modal logistics & multi-material handlingOperates logistics services from client premises across the country with total fleet of over 30 locomotives and over 35 vehicles

Products & Services

SAFLog’s core competence:• Rail shunting operations and infrastructure

management• Rail freight & material handling• Vehicle & Material Handling• Locomotive hire and refurbishment• Rail terminal management SADC market• Rail track maintenance & construction• Rolling stock maintenance• Private rail operator

SAFLog’s long run competence development:• Manufacture of new locomotives and rebuild• Refurbishment of components and spares• End-to-end logistics solutions

Key Executive Profiles

Thami Gwala – Chief Executive Officer (founding managing shareholder)• Black South African Entrepreneur• CEO since inception in 2001 • Holds B.Sc. (Applied Chemistry) and MBA degrees• Former President of the Railroad Association of South Africa (RRA)• Former chairman of SAFreight Shipbuilding

Nwabisa Ntiyane – Chief Operations Officer• Black South African woman• Holds Masters in Industrial Engineering and MBA (Henley)• Specialist manufacturing, quality and engineering management

experience• Held various management positions in OEM engineering

environments, including GE locomotives, Mercedes Benz and CTE

Yolanda Maqungo – Business Development Co-Ordinator• Black South African woman• Holds BCom degree (Tax honours) • Currently doing her post-graduate diploma in accounting• Aspiring CA registered with PortBridge Capital as a trainee

accountant in terms of SAICA’s CA(SA) qualification programme

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SAFLog Business OverviewMarket differentiator and customer references

Blue chip client base / operating sitesKey market differentiator

SAFLog is a 100% black owned and managed company with a LevelOne BBBEE certification

Whilst SAFLog has grown 34% per year over the last four years, it has retained its customer centric focus through:

1. Hands on management / oversight (owner-run service culture)

2. Customising services to meet customer needs, continued drive to improve clients’ efficiencies and dynamic re-scoping of role

3. Long-term win-win-win relationships; Phased and long term client relationship building approach: knowledge of client environment facilitates best design solutions and scope of services

4. Ownership of pre-owned fleet of over 30 locomotives (mostly refurbished in house) enabling SAFLog to provide cost effective infrastructure, efficient loading and off loading operations including locomotive redundancy support services for 100% availability

5. Rail Track maintenance & construction expertise ensures thatwe keep track and wheel together at all times

6. Backward integration into maintenance, repair and spare parts, providing “one stop shop” logistics management & minimising client spares inventory holding

7. Inter-modal expertise facilitates end to end solutions

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SAFLog Business OverviewInvestments in Associates and strategic partnerships

SAFLog is the operating local partner to Lucchini RS’ South African operations. Lucchini RS is a global first tier steel forger and manufacturer of wheels, axles and related locomotive products.

SAFLog is one of the BEE partners in Gibela Rail, the PRASA R51bn fleet renewal program company. From this affiliation, SAFLog is involved in many of the supplier development initiatives, supply chain & knowledge transfer programmes.

NRE is the third largest global producer of locomotives. NRELocomotives South Africa (“NRE LSA”) are local partnersproviding access to technical support and spares.

Acton Repair Services is a traction motor design,manufacture and repair business. Acton’s inhouse designsand expertise has been developed by its 100% South Africanmanagement team and will be strategically leveraged forgrowth on the continent.

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SAFLog Business OverviewSustained and consistent growth

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5

10

15

20

25

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20

40

60

80

100

120

2013 2014 2015 2016 2017

Revenue EBITDA

5-Year revenue and profit growth

109

215 233

305 303

800

2013 2014 2015 2016 2017 Current

SAFLog Employee base

66

SAFLog Business OverviewInfrastructure

Locomotives Quantity

35 Class 5

GL18C's (1720’s)GL22/26C's (2100's)

73

RS 30s 3

Other (diesel-hydraulics) 12+

Total 30+

Geographic footprint* Fleet of pre-owned locomotives

*Head office Modderfontein Industrial Park, Ekurhuleni

SAFLog Aviation Services to SAA:Cape Town International AirportOR Tambo International AirportKing Shaka International AirportEast London AirportPort Elizabeth Airport

SAFLog SA sites:Gauteng

RoodepoortBrakpanModderfonteinDunnottarSasolburgActonNRE SA

Northen CapePostmasburgKathuKimberly

North WestLichtenberg

Eastern CapePort ElizabethEast London

MpumalangaMiddelburgSecunda

Western CapeCape Town

Kwazulu NatalDurban

SAFLog Non-SA sites:Swaziland ZambiaMozambiqueSAFLog

SAFLog local partners

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AfriSam case studyEvolution of scope of services

1. Shunting contract at AfriSamDudfield

• 2001 contract with Transnet- Assetless Service Provider

• 2003 Increase scope to off/loading for efficiency, ordering of raw materials

• 2009 replace Transnet to direct contract with AfriSam & provide own locos- value to client

2. 2006 new contract with AfriSam at destination plant Roodepoort.

• Buys AfriSam locos, shunts, off-loads, maintains track.

• 2012 takes over similar services at Brakpan plant

4. Scope of services expanded to include both• Packing (cement bags) and• Dispatch (loading of finished

product to road & rail trucks)

3. Scope of services expanded to include provision of other services like RSR Management, railway crossing upgrades, and other plant upgrades

- 16 years of value adding service: 2001 to present day

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Manganese terminal management

Lohatlha (NC) STC terminal (PE)

Ownership 100%-Subsidiary Associate

Terminal clients Transnet, Emerging miners (Northern Cape) Emerging miners

Scope of role Full site establishment from zero base

Operator of entire site including:• Receipt and scheduling of client truck road deliveries• Receipt of differentiated grades of material• Stock pile management• Contamination management• Optimal wagon loading – no skew loading, over/under

loading• Capacity management• Shunting

• Provision of shunting services between mainline and terminal• Provision of locomotives, off-loading service and road short-

hauling to port

Volumes 104 wagons per day 77-104 wagons per day

Site establishment 2013 2014

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1000000

Y1 Y2 Y3 Y4 Y5

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Sasol case studyRail Maintenance at Two Sasol Sites

- One of our many core competencies in the Railway Sector

• 3 year contract awarded to SAFLog in October 2017 for the maintenance of railway infrastructure at Sasol Sasolburg and Sasol Secunda

• 300 000 tons of coal and 60 000 tons of chemicals transported to Richards Bay per month [Nono/Mr G to confirm]

• SAFLog provides continuous rail maintenance services, ensuring the track is safe, reliable and compliant with the Railway Safety Regulator

• Assets on site include: SANS approved tools and equipment, Crane Truck, Double Cab, Minivan

• 3 teams led by Site Manager and Track Inspector

• Committed to empowering employees by providing excellent training and other growth opportunities

SecundaSasolburg

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Gibela case studyConstruction projects

- Construction of 6km railway lines

• SAFLog was appointed by Gibela to construct the internal and external railway lines for the New Manufacturing Facility at Dunnottar, Nigel

• Project commenced June 2017 with the completion date is set for February 2018

• Contract includes constructing the external earthworks (which has been outsourced)

• Railway lines total 6km• Assets include generators, impact wrenches, rail cutting machine,

sleeper drills, tamping units as well as other construction hand tools• 68 employees working on the rail construction and further 25 on the

earthworks

Project Value:Circa R67m

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Transnet Port Terminals case studyAutomotive industry

- Logistics solutions: From rail to road

• In September 2017 SAFLog was awarded a contract by TPT to provide driving, handling and surveying services of import, export and transhipment vehicles, including abnormal vehicles and related cargo at the Durban Roro Terminal

• Currently handling 90 000 moves per month (on average)• SAFLog’s fleet deployed to site is made up of 11 vehicles• 350 employees including management

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Safety Record

• SAFLog has a clean safety record with zero fatalities in its many years of operations

• Level 5 NOSA rating

• 7 sites have RSR operator permits

• ISO 9001 Certification held since 2016

• Inspections follow best practice as per OEM standards