Slide 1: Balwin Properties Results Presentation for the Twelve Months Ended 29 February 2024
Your lifestyleour focus BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 1
Slide 2: Agenda
AGENDA 1 2 3 Izinga Eco Estate Greenpark Fynbos OPERATIONAL OVERVIEW FINANCIAL OVERVIEW ANNUITIES 4 5 6 Ballito Hills The Polofields De Aan-Zicht SUSTAINABILITY LOOKING FORWARD ANNEXURES Cover image: Munyaka BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 2
Slide 3: Operational Overview
1 OPERATIONAL OVERVIEW Steve Brookes Chief Executive Officer THABA-ECO VILLAGE LIFESTYLE CENTRE BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 3
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS 1 892 5.6% 23 273 Apartments sold and recognised in Revenue contribution to the group from Apartments with International EDGE revenue for the period Balwin Annuities certification IZINGA THABA-ECO VILLAGE 46% 41 581 7 Revenue contribution from sale of Apartments in development
Slide 5: Operational Review
OPERATIONAL REVIEW Revenue down by 29% to R2.4 billion compared to the prior comparative period, reflecting a challenging residential housing market Total number of apartments handed over amounted to 1 892 during the period (2023: 2 788 apartments) 46% of revenue recorded from the Western Cape regio
Slide 6: Operational Review
OPERATIONAL REVIEW BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 6
Slide 7: Development Pipeline
DEVELOPMENT PIPELINE Total apartments in Total apartments Total apartments Total apartments Total apartments sold but Total unsold Development development sold registered recognised in revenue not recognised in revenue apartments Balwin pipeline Gauteng 38 200 7 924 7 576 7 744 180 30 276 30 456 Kwa
Slide 8: Financial Overview
2 FINANCIAL OVERVIEW Jonathan Bigham Chief Financial Officer THE HUNTSMAN BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 8
Slide 9: Financial Overview
FINANCIAL OVERVIEW FOR THE YEAR ENDED 29 FEBRUARY 2024 R2.4 billion 29% 28% 1% R351.2 million 11% R217.4 million 50% Revenue Gross profit margin Operating costs Profit for the period FYNBOS THE REID KIKUYU 47.94 cents 48% R289.6 million Loan-to-value 40.5% 858.49 cents p4% Headline earnings per shar
Slide 10: Audited Summary Consolidated Statement of Profit and Loss
AUDITED SUMMARY CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 10
Slide 11: Financial Performance: Revenue
FINANCIAL PERFORMANCE FOR THE YEAR ENDED 29 FEBRUARY 2024 Revenue Revenue decreased by 29% to R2.4 billion (2023: R3.3 billion) Revenue earned from the following sources: Revenue from sale of apartments Number of apartments handed over decreased by 32% to 1 892 apartments (2023: 2 788 apartments) St
Slide 12: Apartments Recognised in Revenue
APARTMENTS RECOGNISED IN REVENUE FOR THE YEAR ENDED 29 FEBRUARY 2024 REVENUE BY REGION (%) REVENUE BY COLLECTION (%) BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 12
Slide 13: Average Selling Price Analysis
AVERAGE SELLING PRICE ANALYSIS FOR THE YEAR ENDED 29 FEBRUARY 2024 APARTMENT CONTRIBUTION BY APARTMENT TYPE Ballito Hills BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 13
Slide 14: Average Selling Price Analysis
AVERAGE SELLING PRICE ANALYSIS FOR THE YEAR ENDED 29 FEBRUARY 2024 APARTMENT CONTRIBUTION BY APARTMENT TYPE Greenbay BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 14
Slide 15: Financial Performance: Annuity Revenue
FINANCIAL PERFORMANCE FOR THE YEAR ENDED 29 FEBRUARY 2024 Revenue from annuity businesses Revenue increased by 70% to R132.5 million (2023: R78.0 million) Annuity revenue grew to 5.6% of group revenue (2023: 2.3%) BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 15
Slide 16: Financial Performance: Gross Profit
FINANCIAL PERFORMANCE FOR THE YEAR ENDED 29 FEBRUARY 2024 Gross profit Gross profit margin shows a marginal reduction to 28% (2023: 29%) Gross profit margin on sale of apartments decreased to 24% (2023: 27%) owing to the challenging trading environment. Gross profit margin growth remains a key focus
Slide 17: Financial Performance: Operating Expenses
FINANCIAL PERFORMANCE FOR THE YEAR ENDED 29 FEBRUARY 2024 Operating expenses Total operating costs decreased by 11% to R351.2 million (2023: R392.8 million) Balwin Properties (company) decreased operating expenses by 22% (25% reduction excluding depreciation) Balwin Annuities operating expenditure i
Slide 18: Financial Performance: Earnings and Dividend
FINANCIAL PERFORMANCE FOR THE YEAR ENDED 29 FEBRUARY 2024 Earnings Profit after tax decreased by 50% to R217.4 million 51% decrease in earnings per share to 46.18 cents 48% decrease in headline earnings per share to 47.94 cents Dividend The board resolved not to declare a dividend for the 2024 finan
Slide 19: Audited Summary Consolidated Statement of Financial Position
AUDITED SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 29 FEBRUARY 2024 BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 19
Slide 20: Financial Position: Non-current Assets
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Non-current assets Drivers of investment through annuity businesses, namely: – Solar assets – Fibre infrastructure – Fit-outs of Johannesburg head office following building being 100% let – 61 room hotel at The Blyde (Tshwane East) Developments under constru
Slide 21: Developments Under Construction by Region
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Developments under construction (continued) Developments under construction by region Land and Development Costs of Audited as at Audited as at February 2024 February 2023 infrastructure rights construction 29 February 2024 28 February 2023 R'000 R'000 Regio
Slide 22: Developments Under Construction by Collection
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Developments under construction (continued) Developments under construction by Collection Land and Development Costs of Audited as at Audited as at August 2023 February 2023 infrastructure rights construction 29 February 2024 28 February 2023 R'000 R'000 Col
Slide 23: Developments Under Construction (continued)
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Developments under construction (continued) BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 23
Slide 24: Land Registered and Trade Receivables
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Developments under construction (continued) Land registered during financial year › Greenspruit (potential rental development) › Cost of R21.7 million › Estimated 1 020 apartments Land contracted post financial year › Suikerbos (replacement project for sold-
Slide 25: Cash and Cash Equivalents
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Cash and cash equivalents Cash position at period end of R 289.6 million (2023: R607.3 million) Cash on hand exceeds funding covenants and board thresholds Continued active oversight of Treasury Committee Replacement of debt-service reserve account (restrict
Slide 26: Debt
FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Debt Development loans and facilities amounted to R3.1 billion (2023: R3.0 billion) Loan-to-value 40.5% (2023: 40.7%) – covenant at 50% Loan-to-value ratio is materially measured at cost and free from fair value adjustments Full compliance with financial cov
Slide 27: Funding Overview
FUNDING OVERVIEW Audited as at Audited as at 29 February 2024 28 February 2023 R '000 R '000 General banking and investment facility 1 038 603 1 487 344 Land 1 183 061 1 087 096 Top structure 412 452 236 860 Common costs 71 279 70 219 Infrastructure 367 503 75 000 Total 3 072 897 2 956 519 Loan-to-v
Slide 28: Audited Summary Consolidated Statement of Cash Flows
AUDITED SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 29 FEBRUARY 2024 BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 28
Slide 29: Annuities
3 ANNUITIES Raaziq Ismail Head of Legal and Annuity THE REID BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 29
Slide 30: Annuities Overview
ANNUITIES OVERVIEW R69.5 million * R79.2 million 9 109 Operating profit Savings to our clients through Active clients on Balwin Fibre network Balwin Mortgages BALLITO HILLS 2 333 821 R1.04 billion Tons of carbon dioxide emissions Balwin Connect Clients (Internet Service Assets under management as at
Slide 31: Consolidated Annuity Statement of Profit and Loss
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 Fibre and Financial Other 29 February 24 28 February 23 Audited (R’000) * infrastructure1 Rentals2 Lifestyle assets3 services4 Green Living5 Businesses6 Annuity Annuity Revenue 66 054 33 099
Slide 32: Balwin Fibre Statement of Profit and Loss
BALWIN FIBRE (PTY) LTD – STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 29 February 24 28 February 23 OPERATIONAL UPDATE Audited Audited Financial update R’000 R’000 Homes passed 12 926 Revenue 53 415 43 124 Active clients 9 109 Cost of sales - - Upta
Slide 33: Balwin Mortgages Statement of Profit and Loss
BALWIN MORTGAGES (PTY) LTD – STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 OPERATIONAL UPDATE 29 February 24 28 February 23 Audited Audited 1 220 bonds secured for the period 1 March 2023 – Financial update R’000 R’000 29 February 2024 Revenue 12 489
Slide 34: Balwin Green Living Statement of Profit and Loss
BALWIN GREEN LIVING (PTY) LTD – STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 29 February 24 28 February 23 OPERATIONAL UPDATE Audited Audited Financial update R’000 R’000 Operating on 11 sites Revenue 11 743 4 275 A 10% discount on electricity tarif
Slide 35: Balwin Rentals Statement of Profit and Loss
BALWIN RENTALS (PTY) LTD – STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 29 February 24 28 February 23 OPERATIONAL UPDATE Audited Audited Financial update R’000 R’000 Achieved an average occupancy of 93% for the period with a low of 89% and a high of
Slide 36: Other Annuity Businesses Statement of Profit and Loss
OTHER ANNUITY BUSINESSES STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 29 FEBRUARY 2024 29 February 24 28 February 23 OPERATIONAL UPDATE Audited Audited Financial update R’000 R’000 Other businesses comprises of Revenue 681 12 706 Approved Cost of sales (386) - Gross
Slide 37: Sustainability
4 SUSTAINABILITY Steve Brookes Chief Executive Officer GREENCREEK BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 37
Slide 38: Sustainable Business Practices
SUSTAINABLE BUSINESS PRACTICES Continued commitment to reducing our environmental impact through innovation in design and building techniques The first South African company to have both a science-based target and Net Zero commitment approved by the International Science based target initiative All
Slide 39: Looking Forward
5 LOOKING FORWARD Steve Brookes Chief Executive Officer THE BLYDE MINT RESORT BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 39
Slide 40: The Future
THE FUTURE Maintain focus on core operations by leveraging existing land bank and existing pipeline of developments Opportunities for growth in strategic areas on terms that do not put liquidity and debt pressure on the group Healthy position of forward sold apartments of 529 Key focus on cost reduc
Slide 41: Annexures
6 ANNEXURES THABA-ECO VILLAGE BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 41
Slide 42: Operating Model
OPERATING MODEL Development of large-scale residential estates in key target nodes Targeting an average profit margin of low to mid 30% range over the lifecycle of each project Drive efficiencies through turnkey approach to development Maintaining costs and cash preservation MUNYAKA Development pipe
Slide 43: Turnkey Development Model
TURNKEY DEVELOPMENT MODEL THE HUNTSMAN MUNYAKA DE AAN-ZICHT BALWIN PROPERTIES RESULTS PRESENTATION FOR THE TWELVE MONTHS ENDED 29 FEBRUARY 2024 43
Slide 44: Corporate Overview
CORPORATE OVERVIEW Specialist, national residential property developer of large- scale sectional title estates Focus on high quality, environmentally efficient, affordable apartments with an innovative and all inclusive lifestyle offering for clients Currently developing approximately 2 000 apartmen
Slide 45: Governance Process Development Opportunities
GOVERNANCE PROCESS DEVELOPMENT OPPORTUNITIES Development opportunities identified Internal due diligence process followed: › Costs › Infrastructure › Zoning › Independent review of nodal residential demand Presented for approval to: MOOIKLOOF ECO-ESTATE › Executive Committee › Transactions Committee
Slide 46: Investment Case
INVESTMENT CASE Well positioned to address the undersupply of quality, affordable housing in the low to middle market income market Long-term development pipeline in key strategic locations Proven and flexible business model for large-scale developments Strong management with approximately 30-years
Slide 47: Development Brands
DEVELOPMENT BRANDS Core development model One-, two-, and three-bedroom four storey walk up apartments Prices range from R764 910 to R3 249 900 Developments located in high density, high growth nodes across key metropolitan areas Benefits from economies of scale, in-house construction THE BLYDE and
Slide 48: Development Brands
DEVELOPMENT BRANDS Model targets a slightly lower income consumer than the Classic Collection Prices range from R599 900 to R1 519 900 Developed on a phase-by-phase approach Distinctive architecture and high-quality standards Residents have access to traditional lifestyle offerings associated with B
Slide 49: Development Brands
DEVELOPMENT BRANDS Three elite model developments, The Polofields and Munyaka Lifestyle Centre apartments (Johannesburg, Waterfall) and Izinga Eco Estate (KwaZulu-Natal, Umhlanga) Apartments built to higher specifications with luxurious finishes Prices range from R899 900 to R10 999 900 Developments