Balwin Properties Ltd. · JSE:BWN
Balwin Properties — RMB Morgan Stanley Property Show Case 2016
39 slides from Balwin Properties's conference presentation, 2016
Slide 1: RMB Morgan Stanley Property Show Case 2016
RMB Morgan Stanley Property Show Case 2016 1
Slide 2: Overview
Overview Introduction Our Business History What we do Highlights Key Performance Indicators Strategic Focus Our Pipeline Funding Current Developments Strategic Objectives Risk Mitigation The Way Forward Annexures De Velde Lifestyle Centre Annexure A: Management Annexure B: In
Slide 3: Our Business
Our Business 3 The Cambridge (Bryanston)
Slide 4: Our Business (continued)
Our Business (continued) Balwin is the largest homebuilder in South Africa focused on the development of large-scale, secure, sectional-title residential estates (±500 – 1000 units per residential estate) in high-density, high-growth metropolitan areas in the greater Johannesburg, Pretoria and Cape
Slide 5: Our Business (continued)
Our Business (continued) Financial Target: Profit After Tax for the 2016 financial year is expected to be between R542-R579 million per trading update on SENS Key investment highlights: South Africa’s largest sectional title homebuilder within the target price range of R599,999 to R1,699,000 nationa
Slide 6: Our History
Our History The Cambridge (Bryanston) 6
Slide 7: Our History (continued)
Our History (continued) Jonathan Weltman Ulrich Balwin completes its first joins Balwin (Buffet Balwin’s first offices Gschnaidtner large-scale estate in appointed) open in Winchester Hills, Johannesburg joins Balwin from Solheim, Johannesburg Balwin moves into its Nostrum current head-office Listed
Slide 8: What we do
What we do Balboa Park (Oakdene) 8
Slide 9: What we do (continued)
What we do (continued) Land Identification Hand Over to Feasibilities Clients Construction Secure Land Marketing Project and Sales Planning 9 Turnkey Approach
Slide 10: Highlights
Highlights 10 Balboa Park (Oakdene)
Slide 11: Key Performance Highlights
Key Performance Highlights 11
Slide 12: Strategic Focus
Strategic Focus Westlake (Modderfontein) 12
Slide 13: Development Pipeline
Development Pipeline Approximately 17,028 Balwin homes - ±8 years (2,377 homes per annum) Revenue to Revenue Registered to Remaining Development name Node Total units Pre-sales date remaining date units (R ‘million) (R ‘million) Johannesburg Balboa Park JHB South 410 - 165 245 - 372 Cambridge JHB No
Slide 14: Development Pipeline (continued)
Development Pipeline (continued) Construction to Development Node Total units Rationale commence Johannesburg Proximity to Bryanston / Sandton; high-growth node; Amsterdam JHB North 1,060 September 2015 access to highways and major attractions Access to highways and major attractions (including Maje
Slide 15: Funding
Funding Land debt: obtained from third party lenders secured against various balance sheet covenants Target Loan to Value (“LTV”) of 50% - 70% Balance Sheet largely ungeared with land debt repaid on listing Development funding: obtained from third party lenders on a phase-by-phase basis secured agai
Slide 16: Current Developments
Current Developments Salient features Johannesburg Location North (Olivedale) Number of units 1,060 Commencement September 2015 Salient features Johannesburg North Location (Bryanston) Number of units 440 Units registered - Pre-sales level 159 Commencement August 2015 Completion September 2017 16
Slide 17: Current Developments
Current Developments Salient features Johannesburg Location North (Fourways) Number of units 877 Commencement June 2012 Completion December 2015 Salient features Johannesburg North Location (Kyalami) Number of units 542 Commencement August 2013 Completion December 2015 17
Slide 18: Current Developments
Current Developments Salient features Johannesburg Location East (Greenstone) Number of units 986 Commencement September 2013 Completion March 2016 Salient features Johannesburg East Location (Greenstone) Number of units 620 Commencement May 2014 Completion March 2017 18
Slide 19: Current Developments
Current Developments Salient features Johannesburg South Location (Oakdene) Number of units 410 Commencement February 2015 Completion June 2017 Salient features Johannesburg South Location (Oakdene) Number of units 480 Commencement February 2015 Completion August 2017 19
Slide 20: Current Developments
Current Developments Salient features Johannesburg East Location (Greenstone) Number of units 290 Commencement October 2015 Salient features Johannesburg East Location (Modderfontein) Number of units 790 Commencement July 2015 Completion March 2018 20
Slide 21: Current Developments
Current Developments Salient features Location Pretoria East Number of units 136 Commencement May 2015 Completion July 2016 Salient features Western Cape Location (Somerset West) Number of units 1,210 Commencement October 2011 Completion December 2016 21
Slide 22: Current Developments
Current Developments Salient features Western Cape Location (Somerset West) Number of units 87 Commencement March 2015 Completion August 2016 Salient features Western Cape Location (Milnerton) Number of units 580 Commencement September 2015 Completion June 2018 22
Slide 23: Strategic Objectives
Strategic Objectives New site acquisitions in Development of a rental existing and target areas portfolio in the long term Delivering on 8 year secured pipeline Complementary Development of Partnerships with other government land property companies 23
Slide 24: Risk Mitigation
Risk Mitigation Phased approach to development. Finance is ring fenced to the specific phase being financed. Imported products comprise a minor component of total construction costs and therefore are not significantly impacted by the weakening of the Rand to global currencies. Development of a renta
Slide 25: The Way Forward
The Way Forward Potential acquisition of development rights in the waterfall Node: +/-15 000 opportunities 25
Slide 26: The Way Forward (continued)
The Way Forward (continued) 26
Slide 27: Annexure A: Management
Annexure A:Management 27
Slide 28: Executive Directors
Executive Directors Name Experience Stephen Brookes Stephen is the CEO and founder of Balwin, with over 20 years of Chief Executive Officer experience in the position at the Company National Higher Diploma, Prior to founding Balwin in 1996, Stephen spent 4 years as a Civil Civil Engineering Engineer
Slide 29: Non-Executive Directors
Non-Executive Directors Name Experience Hilton Saven Hilton is the Chairman of Mazars South Africa and serves on the Independent non- Governing Council of Praxity, a global alliance of independent executive director accounting and auditing firms, and was appointed to the Mazars Group Executive Board
Slide 30: Non-Executive Directors (continued)
Non-Executive Directors (continued) Name Experience Basani Maluleke Basani is a director of Transcend Capital and a co-founder of African Independent non- Century Ventures. executive director Basani has ten years of financial services experience in the areas of BCom, LLB, MBA (Kellogg) corporate fin
Slide 31: Annexure B: Interim Results
Annexure B:Interim Results 31
Slide 32: Interim Results August 2015
Interim Results August 2015 32
Slide 33: Interim Results August 2015
Interim Results August 2015 33
Slide 34: Financial Performance
Interim Results August 2015 Financial Performance 1600 Millions 1400 1200 1000 800 600 400 200 0 Revenue Gross Profit Operating Profit Profit for the period Aug-15 Aug-14 Feb-15 34
Slide 35: Financial Position
Interim Results August 2015 Financial Position 1600 Millions 1400 1200 1000 800 600 400 200 0 Non-Current Assets Current Assets Non-Current Liabilities Current Liabilties 35 Aug-15 Aug-14 Feb-15
Slide 36: Annexure C: Market Fundamentals
Annexure C:Market Fundamentals 36
Slide 37: Robust Market Fundamentals
Robust Market Fundamentals Balwin is targeting PAT growth in excess of 15% per annum for the next 5 years driven primarily through organic growth, supported by strong anticipated demand for Balwin homes Evolving property needs for the upwardly mobile middle income population segment: increasing need
Slide 38: Robust Market Fundamentals
Robust Market Fundamentals South Africa’s residential property market has recovered from the 2008 global financial crisis Appetite to and lender appetite to extend credit to clients, especially in respect of residential property, extend mortgage remains strong bonds in SA Bi-annual value of mortgage
Slide 39: Questions?
Questions? 39 y PROPERTIES.
Balwin Properties — RMB Morgan Stanley Property Show Case 2016 on 6ix