2011 RESULTS PRESENTATION

RBA HISTORY

• Established 15 years ago

• Listed on AltX in 2007

• Started building a rental book in 2009

• Built more than 7 900 homes to date

• Commenced housing for mines in 2010

• Currently marketing 12 development areas in

Gauteng, Polokwane and KwaZulu Natal

RBA’S BUSINESS

• Builder and supplier of affordable homes

• Freehold sales and Sectional title rentals

• Freehold units funded via traditional home loans

• Rental projects funded through NHFC and GPF

• Turnkey solution at fixed price

• Control construction process from start to finish

RBA’S SUPPLY CHAIN

Managed by IT system

Raw land to serviced stands

Marketing and sales

Credit assessment

Select plans and extras

Procurement of finance

Legal admin and project management

Construction and retention

LOWER END HOUSING SECTOR

Segments Average cost

Low cost (“RDP”) Up to R100 000

State subsidised / Credit linked R100 000 – R250 000

RBA’s Current Market

Bonded/Bank funded R300 000 – R600 000

DECEMBER 2011 RESULTSFINANCIAL HIGHLIGHTS FOR 2011

• Revenue up by 62%• Gross profit up by 90%• Group recorded a profit of R3,9 million • Cash generated for the year of R16,5 million• Balance sheet has been restructured

DECEMBER 2011 RESULTS

December 2011 R’000 000

December 2010 R’000 000

December 2009 R’000 000

Gross revenue 175.9 108.6 84.0

Earnings/(loss) 3,9 (13.3) (30.3)

Headline earnings 7,3 (15.2) (35.2)

EPS (c) 1.18 (4.33) (9.88)

NEPS (c) 1.97 (4.17) (9.97)

HEPS (c) 2.16 (4.94) (11.45)

NAV per share (c) 15.36 13.52 24.22

DECEMBER 2011 RESULTSOperating Stats as at 31 December 2011

12 monthsending

31-Dec-11

12 monthsending

31-Dec-10

12 monthsending

31-Dec-09Deals approved by banks awaiting registration

379 * 394 374

Deals registered 590 468 266

Equivalent houses completed 613 379 288

* 160 of these deals are in project areas that are currently being serviced and will register in the second six months of 2012.

DECEMBER 2011 RESULTS

Segment reportProperty Development Rental Portfolio

31-Dec-11 31-Dec-10 31-Dec-11 31-Dec-10Revenue 166,222 102,804 9,740 5,769

Cost of Sales (103,724) (70,532) -  

Gross Profit 62,498 32,272 9,740 5,769

Operating Expenses (54,212) (51,617) (4,309) (2,274)Loss on sale of assets (2,664) - - -

Revaluation - - 709 2,733

Finance cost (10,348) (8,754) (5,155) (5,261)

Loss/profit before tax (3 934) (26 250) 276 968

Total assets 176,360 229,770 120,784 71,406

Total liabilities 165,873 205,380 79,049 52,980

DECEMBER 2011 RESULTSCommentary

• Financial recovery has continued• Cash flow remains under pressure due to historic losses• 2011 – 613 equivalent houses completed• Corporate governance improved

– Non-exec chairman appointed– 3 non-exec directors appointed

• Secured stands– 4629 res 1 and 2657 res 3

• Protea Glen rental project - 148 units under construction

DECEMBER 2011 RESULTSProspects

• Housing shortage remains a problem in SA• Government initiatives

– R1bn fund to provide mortgage default insurance– Housing subsidy has increased to income level of R15k

• Household indebtedness is slowly improving• RBA has the land, sales, admin and construction capacity to

deliver on our targets• Provision of finance (individual and bulk) to our market remains

a focal point for the banks• Credit extension set to continue increasing• Intense focus on sales

Worst credit squeeze in at least 60 years

South African Reserve Bank Data

Private Sector Credit Extension

CURRENT INITIATIVESIntense focus on sales

• Currently generating 1000 leads per month

• Increased sales resources– 7 new vehicles for sales teams– New marketing exhibition kits– Increased agent training– Introduced new external real estate agencies

• Marketing strategies– Branding of Metro buses– Branding of new vehicle fleet– Radio advertising– Flyers at strategic points– Print media i.e Daily Sun

CURRENT INITIATIVESIntense focus on sales

• Competitions– Daily Sun win an RBA Home – 400 000 daily circulation– Mageu win a house – 20 mil cartons

• Mining of leads– Generally people associate themselves with similar classes

• Interview process– Conducted by sales manager– Improve the sales experience for the client– Stringent pre-submission process - Improve quality of deal

Objective to increase leads to 1500 leads per month

Daily Sun Competition

Mageu Competition

BUILDING RENTAL PORTFOLIO

Cost price per completed unit 270,000

Gross monthly rental per unit 3,800

95% vacancy and collection rate 3,610

Monthly cost per unit 900

Net rental 2,710

Annualised rental per unit 32,520

Yield on cost 12,04%

BUILDING RENTAL PORTFOLIO PLANNING

2011 2012 2013 2014Protea Glen 176 324 448 448

Rosettenville 60 60 60 60

Roodekop - - 140 280

Devland - - 80 230

Andeon - - 90 180

Southern Gateway - - - 100

Total number of units 236 384 818 1 298

TYPICAL RENTAL UNITS

TYPICAL RENTAL UNITS

QUESTIONS?