Slide 1: Expect more Experience more
Expect more Experience more
Slide 2: Slide 2
Slide 3: Agenda
Group profile Business model Strategic objectives Strategic update AGENDA Material risks Mooikloof Mega City Investment case Annexures
Slide 4: The Reid, Linbro Park Sandton
The Reid, Linbro Park Sandton
Slide 5: Group Profile
GROUP PROFILE Founded in 1996 by Steve Brookes and currently largest shareholder Listed in the Real Estate Investment and Services sector on the JSE since October 2015 Build-to-sell development model Residential estates are located in high density, high-growth areas in Johannesburg, Tshwane, the Wes
Slide 6: The Blyde Tshwane East
The Blyde Tshwane East
Slide 7: Business Model
BUSINESS MODEL FINANCIAL AND OPERATIONAL SUCCESS DEPENDS ON CONTINUOUS DEVELOPMENT Development of large-scale residential estates in key target nodes Selling approximately 25 apartments per location per month Targeting an average profit margin of approximately 35% over the lifecycle of each project
Slide 8: Business Model: Turnkey Approach
BUSINESS MODEL TURNKEY APPROACH
Slide 9: De Zicht - Milnerton, Western Cape
De Zicht - Milnerton, Western Cape
Slide 10: Strategic Objectives
STRATEGIC OBJECTIVES Cash management and capital allocation Execute on the secured development pipeline Growth in the Green collection model Black Economic Empowerment Ongoing enhancement of the product and customer experience Expanding into future growth nodes Talent management and retention
Slide 11: Strategic Update: Impact of Covid-19
STRATEGIC UPDATE Impact of Covid-19 Well-being of staff and management of the pandemic Construction severely impacted – approx. 3-month delay in construction Careful management of supply chain Sustained sales – through online sales platform
Slide 12: Strategic Update
STRATEGIC UPDATE Future Presidential housing and infrastructure initiative Greencreek (Tshwane East) gazetted as a SIP Based on Balwin’s Green collection model - selling price from R499K– R799K (target FLISP and GAP market) Accelerated execution on existing pipeline Government to fund infrastructure
Slide 13: Kikuyu, Waterfall, Johannesburg
Kikuyu, Waterfall, Johannesburg
Slide 14: Material Risks
MATERIAL RISKS Challenging macro-economic environment Cash management and capital allocation Delays in town planning and local authorities Ability to source and fund future land acquisitions Regulatory compliance and changes in government policies Scarce and skilled people to complement the organisa
Slide 15: Greenkloof, Pretoria East, Artist impression
Greenkloof, Pretoria East, Artist impression
Slide 16: Balwin Properties
é PROPERTIES
Slide 17: Mooikloof Mega City: Introduction
MOOIKLOOF MEGA CITY INTRODUCTION Initial 16 000 apartments Gazetted as a Strategic Integrated Project (SIP): Human Settlements External bulk infrastructure funded by government Majority control (70%) in separate statutory entity Balwin to act as the developer - earn development management fee from J
Slide 18: Mooikloof Mega City: Development Plan
MOOIKLOOF MEGA CITY DEVELOPMENT PLAN Mooikloof Mega City is situated in the eastern part of The City of Tshwane’s municipal area and covers an area of approximately 200ha across two townships The development will be undertaken by Balwin as part of its Green Brand Initiative First phase of 16,000 for
Slide 19: Mooikloof Mega City: Development Plan
MOOIKLOOF MEGA CITY DEVELOPMENT PLAN The total project value is approximately R35 billion The location and price-point of the development, lends itself to the influx of first-time homebuyers, qualifying for FLISP and other government subsidies, providing a broader spectrum of the population to becom
Slide 20: Mooikloof Mega City
j aK ee, CHE HILLS ECO ESTATE, X
Slide 21: Mooikloof Mega City External Artist impression
MOOIKLOOF MEGA CITY Mooikloof Mega City External Artist impression
Slide 22: Mooikloof Mega City Internal Artist impression
MOOIKLOOF MEGA CITY Mooikloof Mega City Internal Artist impression
Slide 23: Mooikloof Mega City: Socioeconomic Summary
MOOIKLOOF MEGA CITY SOCIOECONOMIC SUMMARY
Slide 24: Mooikloof Mega City: Socioeconomic Summary
MOOIKLOOF MEGA CITY SOCIOECONOMIC SUMMARY
Slide 25: Mooikloof Mega City: Socioeconomic Summary
MOOIKLOOF MEGA CITY SOCIOECONOMIC SUMMARY
Slide 26: Kikuyu, Waterfall Johannesburg
Kikuyu, Waterfall Johannesburg
Slide 27: Investment Case
INVESTMENT CASE Well positioned to address the undersupply of housing in the target market Long-term development pipeline in key locations Green Model enabling acceleration of existing land bank/pipeline Potential significant growth opportunity through Strategic Integrated Projects (SIP) Strong, nat
Slide 28: Thank You
PROPERTIES
Slide 29: Questions?
QUESTIONS? QUESTIONS?
Slide 30: Annexures
ANNEXURES : PROPERTIES
Slide 31: Annexures
Development Pipeline Business model Green Collection Classic Collection Signature Collection ANNEXURES Summarised statement of Profit and loss Statement of financial position Balwin Foundation
Slide 32: Pipeline as of Feb 2020
PIPELINE AS OF 29 FEB 2020 Total Expected Expected Total Total Total Total apartments commencement date of apartments Total unsold Balwin Development Status (*) apartments in apartments apartments sold but not date of Completion of recognised apartments pipeline development sold registered recognise
Slide 33: Pipeline as of Feb 2020
PIPELINE AS OF 29 FEB 2020 Total Expected Expected Total Total Total apartments commencement date of Total apartments apartments Total unsold Balwin Development Status (*) apartments apartments sold but not date of Completion of in development recognised in apartments pipeline sold registered recogn
Slide 34: Business Model
BUSINESS MODEL Model targets a lower LSM market than the core model Offers flexibility to determine preferential sales strategy (sell to market or sell to individual investor) to maximise returns Developed on a phase-by- phase approach Distinctive architecture that is different to the core business
Slide 35: Business Model
BUSINESS MODEL Quality, affordable build-to-sell product One-, two-, and three-bedroom four-story walk- up apartments Prices range from R599 900 to R1 999 900 focusing on the middle-income population Developments located in high density, high growth nodes across key metropolitan areas Benefits from
Slide 36: Business Model
BUSINESS MODEL Two elite model developments, The Polo Fields (Waterfall) and Paardevlei Lifestyle Estate (Somerset West) Apartments built to higher specifications Prices range from R1 999 900 to R2 999 900 Developments built on existing land in selected nodes and follow the same phase- by-phase appr
Slide 37: Business Model: Annuity Income
BUSINESS MODEL ANNUITY INCOME Leverage off asset base and expanding service offering to clients Partnerships established to provide high- speed fibre connectivity and solar installation which generates renewable energy Complementary to Balwin’s business model and enhance the lifestyle offering to cl
Slide 38: Summarised Statement of Profit or Loss and Other Comprehensive Income
SUMMARISED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME GROUP For the year ended For the year ended 29 February 2020 28 February 2019 R'000 R'000 Revenue 2 914 453 2 613 905 Cost of sales (2 124 703) (1 826 024) Gross profit 789 750 787 881 Other income 19 847 16 002 Operating expenses
Slide 39: Summarised Statement of Financial Position
SUMMARISED STATEMENT OF FINANCIAL POSITION GROUP For the year ended For the year ended 29 February 2020 28 February 2019 R'000 R'000 Non-current assets 100 026 101 185 Current assets 4 507 714 4 298 926 Developments under construction 3 369 972 3 042 919 Cash and cash equivalents 476 532 329 382 Oth
Slide 40: Balwin Foundation
BALWIN FOUNDATION Core Focus 01 EDUCATION: Scholarships, Bursaries and Learnerships 01 to support and empower the youth in EDUCATION areas related to the building industry. 02 DEVELOPMENT: Building related trade training skills Registered development and short courses to increase in 2016. Started em
Slide 41: Balwin Foundation: 2019/20 Key Achievements
G 2019/20 KEY ACHIEVEMENTS Programme Update: March 2019 to February 2020 The foundation continued offering — skills training in e Gauteng and Kwa-Zulu Natal and expanded its footprint to the Western Cape. Months Courses Skills Trainees Western Cape Nationally, 255 previously disadvantaged | 41 52% 4
Slide 42: Balwin Foundation: Sustainable Development Goals
G 2019/20 KEY ACHIEVEMENTS Programme Update: March 2019 to February 2020: SUSTAINABLE DEVELOPMENT oa The Foundation aims to address all 17 of the Sustainable Development Goals (SDG) by 2022, currently our programmes focus on SDG 1 — End Poverty, SDG 2 — End Huger, SDG 3 - Ensure Healthy Lives, SDG 4
Slide 43: Balwin Foundation: Sustainable Development Goals
G 2019/20 KEY ACHIEVEMENTS Programme Update: March 2019 to February 2020: _& SUSTAINABLE DEVELOPMENT GOALS In support of all the SDGs, Balwin provides funding to various organisations addressing the SDGs through the Annual Balwin Charity Walk. This event has entrenched Balwin’s reputation as a compa