HI TECH TRANSFORMER MAINTENANCE (PTY) LTD. COMPANY PROFILE AND OVERVIEW 19 March 2012

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1 HI TECH TRANSFORMER MAINTENANCE (PTY) LTD COMPANY PROFILE AND OVERVIEW 19 March 2012

2 COMPANY BACKGROUND The company was founded in Ownership changed in Mainly provided site transformer maintenance service to Rotek Engineering on a sub-contract basis. Consisted of two fully equipped maintenance teams with rigging gear and one 10 ton truck. Premises was leased from Rotek Engineering. Moved into own premises in The company is now 100% black owned and major emphasis is placed on black youth employment, development and training. The company enjoys a combined experience of 200 plus years on transformers within senior management.

3 COMPANY BACKGROUND Hi Tech is a member of AMEU, SAIPPA and PIESA. We have a CIDB rating of 6 EP. We are a BBBEE AA Level 3 contributor. The company is currently in the process of SANS ISO 9001, and OHSA accreditation as part of our vision to become the leading African Maintenance and repairs Engineering Company, operating in an environmentally responsible manner to the benefit of all our stakeholders.

4 SERVICES PROVIDED Condition monitoring (Assessments, on-line in service). Oil sampling, analysis and interpretation. Full range of electrical testing and interpretation. Site transformer and tap changer maintenance and repairs. Comprehensive insulating oil handling (Purification, regeneration, vacuum drawing and oil filling etc.). Moisture management in transformer insulation. Transformer assembly, dismantling, moving and transportation. Crane and mobile crane truck rental. Installation, oil handling and commissioning of transformers. Switchgear installation and commissioning. Sergi Fire Protection System installation and commissioning.

5 CONDITION MONITORING Visual assessments to determine condition of equipment. Oil sampling, analysis and interpretation based on oil sample history and trends. Supply, installation and servicing of Serveron DGA analysers (Distributorship agreement). Electrical testing to establish base line or trends. Determine whether critical modifications have been carried out. Recommendations made with regards to risks and remedial actions that need to be performed to reduce any risks.

6 OIL SAMPLING, ANALYSIS AND INTERPRETATION Oil sampling performed by Eskom accredited oil samplers to ensure correct techniques, equipment and containers (Prevents contamination or poor results due to bad sampling). Analysis performed at Eskom oil laboratory (SANAS ISO accredited). Data and history stored in LIMS (Access to LIMS for database interrogation). Interpretation performed and recommendations made on remedial action to prevent or reduce risks.

7 OIL SAMPLING, ANALYSIS AND INTERPRETATION

8 ELECTRICAL TESTING Doble SFRA Swept Frequency Response Analysis (Winding and core deviation). Doble Tan-Delta (Bushings and Transformers). Spy Tech Mk II Ratio meter HV/LV and Tertiary ratios. Three phase variac with poly meter Excitation and Impedance %. RMO60 T 60A Winding Resistance Omnicron CT Analyzer - Ratio/Mag Curves/ Class/Excitation/Knee Point etc. FDS PAX IDAX(Replaces RVM) Moisture content oil to paper insulation and barrier boards. Fluke 1550B Megger Insulation Resistance test on windings and core as well as other insulation resistance functions. Functional tests of protective devices Bucholtz, PRV s, Gas relays and other Aux. devices.

9 ELECTRICAL TESTING

10 SITE TRANSFORMER AND TAP CHANGER MAINTENANCE, REPAIR, RIGGING, ASSEMBLY AND INSTALLATION Full site transformer and tap changer maintenance service and repair functions (5 x Site Transformer Teams in JHB, 1 x Team and office in Cape Town and 1 x Team and office in KZN). Transport, rigging, assembly, commissioning, and dismantling of transformers up to 910 MVA. Full vacuum and oil handling capabilities to highest standards (Five Mobile oil and vacuum teams One more team will be up and running in Cape Town by May 2012). High pressure cleaning and spray painting of transformers. Transformer fault investigation services. Bushing replacements. Full site transformer refurbishment service. Oil leak repairs and re-gasket activities on site.

11 SITE TRANSFORMER AND TAP CHANGER MAINTENANCE EQUIPMENT 1 x Workshop in Rosherville. 1 x 25 Ton mobile crane. 3 x 18 Ton Trucks with truck mounted cranes. 1 x 8 Ton Flat bed truck. 2 x Munters 1100 dry air machines for intrusive work. 3 x Complete rigging sets (Rails, jacks, sleepers, stools, packers etc.). 5 x Fully equipped mobile workshops (Tools, slings, pressure washers, compressors, oil spill kits, special tools etc.) 1 x Dry air compressor to pressurise transformers. 1 x Workshop with fully equipped transformer team in Cape Town. 1 x Workshop with fully equipped transformer team in Natal. 29 x ISO tanks for oil handling and processing. 6 x Rubber oil bags for oil handling and processing. 3 x Mobile oil storage tanks for site maintenance. Dew point testers, oxygen meters, humidity meters, dry air handling equipment, impact recorders etc. Immediate access to mobile cranes up to 500 tons

12 SITE TRANSFORMER AND TAP CHANGER MAINTENANCE EQUIPMENT

13 INSULATING OIL PURIFICATION 2 x 2300 m³ vacuum pumps 3 x 1400 m³ vacuum pumps 5 x Heat and vacuum mobile oil plants with 7500 liters per hour capacity 5 x Full teams fully equipped for vacuum process, oil purification, oil filling etc. All necessary oil tanks, bags etc. to ensure full oil quality according to Specification Temporary bund wall construction material Oil spill equipment and contract with oil spill company

14 INSULATING OIL PURIFICATION

15 INSULATING OIL REGENERATION Regenerate insulating oil to conform to Eskom Specification ESP with regards to: Viscosity, Flash point, Water content, Acidity, Dielectric strength, Density, Corrosive sulphur ( IEC method), Oxidation Stability/RBOT, Dissipation factor, 2-Furfural content/total furans, Particle Count Certified glass bottle(particle count test), Colour, Appearance, Sludge, Silicon, PCB, Inter Facial Tension (IFT), Anti oxidant additives(ftir). Oil supplied in drums or in bulk (Drums and tankers conform to specification cleanliness, certification, batch traceability etc.) Note: The tests used to be referred to as SANS 555 (14 tests). However, due to the changes in oil, more tests have been included.

16 INSULATING OIL REGENERATION

17 MOISTURE MANAGEMENT IN TRANSFORMER INSULATION Own majority stake in Expiotech company (Specialists in moisture management). Evaluation of moisture in transformer oil and paper insulation through installation of sensors and monitoring. Calculate amount of moisture that can be removed safely without putting the transformer at risk. Remove moisture continuously with transformer in service using the operating temperature of the transformer. Stop moisture removal when the calculated safe value has been obtained (no over drying).

18 MOISTURE MANAGEMENT

19 FINANCIAL PERFORMANCE Testing 4% Cape Town 2% Conditioning Monitoring 33% Site Transformer 61% Eskom Distr. 7% Assmang 4% Other 7% Siemens 31% Nett Turnover in 2006 = R 6 million Nett turnover in 2012 = R 53 million Rotek 7% Powertech 9% Namane Electrical 10% Eskom Northern Region 25%

20 GROWTH ASSET VALUE 2005 R 323 k 2012 R 9,6 million

21 WHY HI TECH? Our experience in the transformer industry (More than 200 years). Best riggers and Project Managers in South Africa in the transformer industry. We install transformers and provide services to all Eskom s suppliers and Eskom (SIEMENS, SMIT, WEG, Powertech, Actom, AE Power Sumitomo, Daewoo Hyundai) We know all the requirements of Eskom (Health and safety, environment, specifications, procedures, etc.). We know the oil business very well and can save our clients money in the way we manage these activities (In line with Eskom requirements). We can offer turnkey service which also includes project management. We are well known in the Eskom environment. We provide services to the whole electrical industry in South Africa (Municipalities, Mines, Steel industry and others). Our equipment is the best in terms of Eskom requirements (Vacuum plants, oil plants, ISO tanks, test equipment, dry air generators, rigging equipment etc.) We consult to Eskom on certain technical problems due to our involvement in writing of specifications etc. We add value, not margins!

22

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