BBBEE Skills Proposal Level 2 BBBEE company 66

B-BBEE Skills Proposal Level 2 B-BBEE company: 66% Black Owned 33% Black Woman Owned www. edupower. co. za

INTRODUCTION Edu. Power offers fully hosted, 12 -month SETA accredited learnerships. Our unique company recruits, trains and places candidates. We provide a range of standard short courses in our classroom environment with real skills being taught in our experiential contact centre - skills that effectively prepare our candidates for their first jobs. Our focus is on previously disadvantaged, abled and disabled youth. We can therefore offer our partners the B-BBEE credits they require in terms of their Skills Development element of their scorecard. Edu. Power is a Black owned, Black female owned B-BBEE level 2 company (EME). © EDUPOWER 2018

IMPORTANCE WHY IS B-BBEE IMPORTANT? Broad-Based Black Economic Empowerment (B-BBEE) The objective of B-BBEE is to broaden the country’s economic growth, eradicate poverty and accelerate job creation to build a stronger economy in which all South Africans can participate and benefit. © EDUPOWER 2018

SCORECARD ELEMENTS OF B-BBEE QSE Generic ** Elements Description Ownership Who owns the business 25 25 Management Control Black Shareholders, Directors and Managers who work in the business 15 19 Skills Development Black people trained by the business 25 25 Enterprise and Supplier Development Purchases from suppliers, Supplier and Enterprise Development programmes 30 44 Socio- Economic Development Contributions to charities with Black beneficiaries 5 5 100 118 Total (Turnover R 10 mil – R 50 mil) ** applicable to entities that do not fall under specific sector B-BBEE codes © EDUPOWER 2018 (Turnover > R 50 mil)

LEVELS OF COMPLIANCE B-BBEE LEVELS B-BBEE Status Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Non-compliant Qualification > 100 points > 95 but < 100 > 90 but < 95 > 80 but < 90 > 75 but < 80 > 70 but < 75 > 55 but < 70 > 40 but < 55 < 40 B-BBEE Recognition Level 135% 125% 110% 100% 80% 60% 50% 10% 0% It is important to remember that ownership, skills development and enterprise and supplier development are now all priority elements, with a subminimum achievement of 40% required on each to avoid dropping a scorecard level. Note: certain sector codes such as ICT and Maritime have a different scorecard. © EDUPOWER 2018

SKILLS DEVELOPMENT YOUR SCORE Skills Development: 20 -25 points 1. 2. 3. 4. 5. The spend target has doubled to 6% of annual salary / wages bill 85% of the spend must be on accredited training (eg Learnerships) Includes people other than employees (unemployed) For generics, there are specific targets per sub-race and gender group Points available have increased from 20 to 25 In order to score any points under Skills Development, training in priority skills for Black people must be evident and the following documentation must be submitted to your SETA for approval for both QSE and Generic entities: 1. Workplace Skills Plan (WSP) 2. Annual Training Report (ATR) 3. Pivotal Report (specific to artisans) © EDUPOWER 2018

SKILLS DEVELOPMENT SCORECARD Cat. Criteria / Description 2. 1 Skills development expenditure on any programme specified in the learning programme matrix for Black people as a percentage of the leviable amount 2. 1. 1 Skills development expenditure on learning programmes specified in the learning programme matrix for Black people as a percentage of the leviable amount 8 2. 1. 2 Skills development expenditure on learning programmes specified in the learning programme matrix for Black employees with disabilities as a percentage of the leviable amount 4 2. 2 Learnerships, apprenticeships & internships 2. 2. 1 Number of Black people participating in learnerships, apprenticeships & internships as a percentage of the total employees 4 2. 2. 2 Number of Black unemployed people participating in training specified in the learning programme matrix as a percentage of the number of employees 4 2. 3 Bonus Points 2. 3. 1 Number of Black people absorbed by the Measured Entity at the end of the learnership programme 5 TOTAL: 25 © EDUPOWER 2018 Points

END-TO-END ADMIN SERVICES • Recruitment that complies with your required demographics • The supply of all documentation required for verification purposes including: ü Learner ID ü Affidavit that learner is unemployed ü Disability medical certificate ü Learnership contract ü Proof of SETA registration • Entry and exit from the required SETA • Replacement of a learner if necessary • Payroll management: if we handle your stipend payroll, we will refund the available tax allowances and rebates to you • Reports on overall progress and performance of your learners © EDUPOWER 2018

WAY FORWARD HOW WE CAN ASSIST 1. Recruit • Edupower will recruit to your company specifications and B-BBEE requirements • Able and disabled learners of the required demographic groups 2. Train • SETA Accredited Learnership Training for 12 months (NQF 2, 3, 4, 5) • Edupower will handle all the relevant learnership tax allowances (s 12 H) and incentives claims (ETI) and pass these back to you our Client to reduce the financial burden 3. Host • Edupower will host Learners in an experiential environment for up to 12 months 4. Place • Edupower actively seeks to place Learners into their first full time employed role at the end of the Learnership programme or sooner where appropriate 5. Short Courses • Edupower can provide SETA accredited unit standard training courses © EDUPOWER 2018

WAY FORWARD OUR PROCESS 1. Engage with us 2. Together, we identify the training requirements specific to your company 3. We will provide a tailor made proposal and quote you on the cost 4. Upon acceptance, we complete an engagement document together 5. We identify and recruit the Learners, complete the statutory documentation and begin the classroom and experiential training © EDUPOWER 2018

Edu. Power’s Classrooms © EDUPOWER 2018

Edu. Power’s Career Centre © EDUPOWER 2018

APPENDIX A Appendix A Edu. Power Courses Learnerships Short Courses NQF Level 3: Call Centre Microsoft Word / Excel / Power. Point / Outlook – Levels 1 & 2 & 3 NQF Level 4: Call Centre Microsoft Project software training NQF Level 5: Generic Management Project Management Theory NQF Level 3: End User Computing Time Management NQF Level 4: Project Management Theory NQF Level 4: Business Administration Business skills © EDUPOWER 2018

APPENDIX B Appendix B – Available Tax Allowances and Rebates on Learnerships S 12 Tax Allowance Two types of deductions are available, namely: 1. Annual allowance to which the employer is entitled in any year of assessment in which a learner is a party to a registered learnership agreement; and 2. Completion allowance during any year of assessment in which the learner successfully completes the learnership. The key features of these allowances are that: • the annual allowance is subject to a pro rata reduction if the registered learnership agreement does not cover the full 12 months during any year of assessment. • the completion allowance is granted once-off and deductible in the year of assessment in which the learner successfully completes the learnership. • the quantum of these allowances is increased if the learner is a person with a disability. © EDUPOWER 2018

APPENDIX B Appendix B – Continued The quantum of the annual allowance The annual allowance is deductible in each year of assessment in which the learnership agreement is in force For 12 full months during any year of assessment The quantum of the annual allowance is equal to – • R 40 000; or • R 60 000 if the learner is a person with a “disability” as defined in Section 18(3). For each period of less than 12 full months during any year of the assessment The annual allowance is a pro rata protion if the learner is a party to a registered learnership agreement for less than 12 full months during the year of assessment. Company Cash Impact – Corporate tax rate 28% Per Learner: Full 12 months Per completed month Able bodied Learner R 11 200 R 933 Disabled Learner R 16 800 R 1 400 © EDUPOWER 2018

APPENDIX B Appendix B – cont. The quantum of the completion allowance is equal to – • R 40 000; or • R 60 000 if the learner is a person with a “disability” as defined in Section 18(3). Company Cash Impact – Corporate tax rate 28% Per Learner: Full 12 months Able bodied Learner R 11 200 Disabled Learner R 16 800 Total s 12 H Benefit to Corporate: Annual and Completion - should a learner complete the full programme Company Cash Impact – Corporate tax rate 28% Per Learner: Complete Programme Able bodied Learner R 22 400 Disabled Learner R 33 600 © EDUPOWER 2018

APPENDIX B Appendix B – cont. ETI rebate (PAYE) Aim to stimulate employment of young people - For learners between the age of 18 – 29 years - Value of the ETI monthly rebate: R 1 000 - Deducted from PAYE to be paid across / instant benefit Company Cash Impact – reduction of PAYE Per Learner: Monthly R 1 000 Full 12 month programme R 12 000 © EDUPOWER 2018