FACILITIES

Half year Update

Warren Watkins
25 February 2016

Facilities

Southern Africa 5 countries , 19 offices

Total combined Office space: 67 206 m2

Parking bays 3 245

KPMG Johannesburg campus: 44014m2 and 2336 parking bays

Facilities has a small staff compliment of 22 including 10 receptionists / switchboard

operators, 5 handyman.

In order for facilities to fulfil its mandate, we will require all our partners and staff to
assist by logging any problems to the facilities help desk. If our handymen cannot
assist, a relevant and approved contractor will be summoned as soon as possible

Completed all the snagging in Wanooka Phase 2 as the construction warranties are
expiring

Completed the handover snagging of Wanooka 3 thus taking the building over from the
landlord for maintenance purposes

In Wanooka Phase 3, final adjustments and positioning of all air conditioning outlets,
lighting, fire sprinklers, light monitors and legal fire requirements to facilitate the churn

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

Rental Agreements and Buildings

New leases for East London, Pietermaritzburg, Nelspruit, Pretoria and Cape Town

Possibility of a new KPMG building in Durban.

Cape Town: New building, in progress expected occupancy second half of 2017

East London : revamp in progress expected completion end of May

Nelspruit : revamp in progress and a reduction in floor area, expected completion

mid March

Pietermaritzburg : new office, completion expected end of February

Pretoria : new office, expected occupancy end of July

Zambia : considering Kitwe office expansion

Botswana : negotiating a lease renewal or possibility of moving.

All KPMG offices are AA or AAA graded

ISO accreditation

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

Bidvest and Benchmarking and lease

audit
Bidvest

Negotiation of a possible national contract (Durban, Cape Town, Pretoria and

Johannesburg) for security, cleaning, bottled water, indoor plants, exterior
landscaping and gardening, bathroom utilities etc

Benchmarking and lease audit

Eris properties was mandated and performed both a benchmarking exercise on

the major facilities costs as well as an audit of all our leases.

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

Canteen

Tsafrika for a 12 month period ending 31/1/16 served

- 22 037 breakfasts Crescent, 27 718 breakfasts in Wanooka
- 89 246 lunches in Crescent, 167 958 lunches in Wanooka
- 20706 call order items in Crescent, 23960 call order in Wanooka.
- A total of 352000 meals.

KPMG approves of the selling price of the meal of the day which comprises a minimum of
200g of meat, 1 starch/salad and 1 veg. The selling price is compared to high street prices
and input costs. A significant saving for our staff

Our new pricing structure compares favourably and in most case are lower than Hollard,
Vodacom, Delloites, SAB and Alexander Forbes

KPMG subsidises meals to the tune of around R43 per plate. This subsidy is in the form of
management fees, facilities and utilities.

We have successfully renegotiated the contract with Tsafrika which not only give us
favourable prices per meal but also Tsafrica is to revamp the canteen front of house areas

Crescent and Wanooka canteens are set up to handle lunches for 800 people.

The menu for both Wanooka and Crescent are the same, but one week apart

The utilisation of the Crescent is 46% and Wanooka 87%. The market norm is 35%.

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

Crescent

We are about to start the revamp of areas vacated in Crescent with the intent of
leasing out the whole of the first floor (4000m2).

The space is being actively marketed by Eris Properties. Any leads from KPMG
partners and staff are welcome.
- 9 leads to date
- up to two floors available (8 000m2)

We will in the second half of this year commence with the revamp of other BUs in
Crescent which have not already been revamped. The first priority being the
move into Wanooka 3

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

MOVES Wanooka Phase 3

To date 4 300m2 of carpets laid, 28 offices/meeting rooms built, 275 screens

rehabilitated and fitted and 285 work stations completed.

People, ITS and SSC have already moved into Wanooka Phase 3.

The next moves scheduled are :- FRM (back to Crescent) March,

- Marketing-April,
- Energy-April,
- Risk Management, Advisory National, Sales and Markets and National all
scheduled by the
end of June

These moves at the end of the day will mean that in the vicinity of 800 staff
would have found a new home.

720 people moved in 1997 from the Carlton Centre to the Crescent.

The costs of moving are estimated to be in region of R30 million. Most of these
costs can be capitalised.

The Wanooka street and play areas are being designed and fitted by Marketing
and HR respectively

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

Signage
Signage

New signage is still to be installed on Wanooka 3

The entrance to Crescent is also to get a signage facelift in the near future

Major repairs and maintenance

Crescent lifts (costs R700 000, full refurbishment of R5m deferred, 20 years old )

Revamping the roof garden

Ongoing maintenance

Revamp of the Crescent to commence once the Wanooka 3 moves are completed

Client facing Meeting rooms

5 new client facing meeting rooms of various sizes have been built in Wanooka 1 reception
area. This is the start of our planned new client facing experience

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

SOLAR

Our current solar project has been completed and investigations are ongoing
regarding the extension of this project where possible.

Extensions on the current buildings (small) and the possibility of utilising

neighbouring buildings (subject to legislation).

The current solar solution is a Grid-Tied installation with over 3000 solar panels
which means that KPMG will always use the suns energy before it utilises Eskom
energy.

The total solution generates around 1 million KWH of electricity per annum for
KPMG and not only has a significant impact on our electricity bill but on the
environment as well

The environmental impact is as follows.

- We save around 1 250 00 KWH per annum which would normally come off the
national grid,
- our CO2 emission saving is around 1260 tons a year which equates to
removing 5972 cars
off the road and saving around 1146 trees per annum
2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

QUESTIONS

2016 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no
services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

10

Thank You