Balwin Properties Ltd. · JSE:BWN
Balwin Properties — H1 2022 Earnings Presentation
31 slides from Balwin Properties's earnings presentation, October 2021
Slide 1: Results Presentation for the six months ended 31 August 2021
Your lifestyle our focus RESULTS PRESENTATION for the six months ended 31 August 2021 1
Slide 2: Agenda
Agenda Operational Financial Sustainability Looking Annexures overview overview forward 2
Slide 3: Operational Overview
OPERATIONAL OVERVIEW Steve Brookes Chief Executive Officer Greencreek
Slide 4: Operational highlights
Operational highlights Greenpark SHAREHOLDER SUSTAINABLE 5 476 BUILDING APARTMENTS SOLD APPROVAL OF EDGE ADVANCED IN 12 MONTH PERIOD B-BBEE SIX-STAR GREEN RATING transaction NET ZERO RATING PRE-SALES OF DEVELOPMENT 7 INTERNATIONAL AWARDS 2 846 PIPELINE ACHIEVED AT THE APARTMENTS FOR OF 56 313 APARTM
Slide 5: Operational review
Operational review Operational activity has steadily recovered to pre Covid-19 levels: supported by sustained demand for apartments Increased roll out of the Green Collection apartments in line with strategic focus and first Green Collection development in Western Cape handed over Continued strong d
Slide 6: Monthly sales
Monthly sales MONTHLY SALES SUMMARY (SEPTEMBER 2020- AUGUST 2021) 1 000 900 800 700 600 500 400 AVERAGE SALES 456 300 200 100 - Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Apartments sold Series1 Average apartments sold Series2 Balwin Properties Results Presen
Slide 7: Financial Overview
FINANCIAL OVERVIEW Jonathan Weltman Chief Financial Officer Paardevlei Lifestyle Estate
Slide 8: Financial overview
Financial overview Greencreek 41% 41% 44% R1.3 billion 1 261 R163 million REVENUE PROFIT BEFORE TAX APARTMENTS HANDED OVER 44% 44% 7% R117 million 24.95 cents 692 cents PROFIT FOR THE PERIOD HEADLINE EARNINGS NET ASSET VALUE PER SHARE PER SHARE Mooikloof Eco Estate 8 Balwin Properties Results Presen
Slide 9: Financial review
Financial review Revenue Increase by 41% with 1 261 apartments handed over (H1FY21 896 apartments) Demand for one- and two-bedroom apartments remains strong comprising 80% of revenue (H1FY21 74%) Classic collection continues to contribute the majority of revenue 65% (H1FY21 76%) Green developments c
Slide 10: Financial review
Financial review Operating expenses Increase of 25% attributable mainly to increase in revenue based sales commission as well as once-off consulting fees associated with changes to the business funding model Cost management remains a key focus area for management Earnings per share 44% increase in e
Slide 11: Condensed Consolidated Statement of Profit and Loss and Other Comprehensive Income
Condensed Consolidated Statement of Profit and Loss and Other Comprehensive Income for the six months ended 31 August 2021 11 Balwin Properties Results Presentation 31 August 2021
Slide 12: Apartments recognised in revenue
Apartments recognised in revenue APARTMENTS DEVELOPMENT COLLECTION RECOGNISED IN REVENUE Development Balwin Brand Apartments handed over Apartments handed over by region Johannesburg, Waterfall Kikuyu Classic Collection 88 The Polofields Signature Collection 82 62% 70% 58% Munyaka Classic Collection
Slide 13: Average selling price analysis
Average selling price analysis 31 August 2021 31 August 2020 Ave price % Number Number Apartment type Average price Average price change apartments apartments Studio R529 307 - 40 - - 1 Bedroom R653 464 1% 147 R648 494 32 2 Bedroom R829 204 5% 164 R787 126 98 3 Bedroom R988 446 1% 22 R977 400 8 TOTA
Slide 14: Average selling price analysis
Average selling price analysis 31 August 2021 31 August 2020 Ave price % Number Number Apartment type Average price Average price change apartments apartments 1 Bedroom R885 900 4% 340 R850 644 296 2 Bedroom R1 460 616 7% 254 R1 365 134 197 3 Bedroom R1 766 410 16% 172 R1 529 082 186 TOTAL 766 679 C
Slide 15: Average selling price analysis
Average selling price analysis 31 August 2021 31 August 2020 Ave price % Number Number Apartment type Average price Average price change apartments apartments 1 Bedroom R1 434 520 19% 13 R1 202 408 8 2 Bedroom R1 910 628 -5% 52 R2 000 940 29 3 Bedroom R2 333 912 -1% 57 R2 361 574 41 4 Bedroom - - -
Slide 16: Summarised statement of financial position
Summarised statement of financial position 16 Balwin Properties Results Presentation 31 August 2021
Slide 17: Developments under construction
Developments under construction Land and Costs of construction Total August 2021 February 2021 Region infrastructure costs R’000 R’000 R’000 % % Gauteng 1 595 495 1 501 278 3 096 773 70% 69% Western Cape 325 986 279 068 605 054 14% 15% KwaZulu-Natal 415 876 296 229 712 104 16% 16% SubTotal (Active D
Slide 18: Sustainability
SUSTAINABILITY Steve Brookes Chief Executive Officer Greenlee
Slide 19: Sustainable business practices
Sustainable business practices Reducing our environmental impact through innovation in design and building techniques All apartments developed in the period registered with the International Finance Corporation’s Excellence in Design for Greater Efficiency (EDGE) A total of 27 719 apartments registe
Slide 20: Looking Forward
LOOKING FORWARD Steve Brookes Chief Executive Officer Thaba-Eco Village
Slide 21: The future
The future Focus on the opportunities and growth of the Green Collection model Continued emphasis on responsible environmental management Strong brand equity as demonstrated by sustained demand and online sales Identification of annuity business opportunities that complement the business model and l
Slide 22: Questions and Answers
Questions and Answers Stephen Brookes Jonathan Weltman Chief Executive Officer Chief Financial Officer Tel: +27 11 450 2818 Tel: +27 11 450 2818 Balwin Properties Results Presentation 31 August 2021 22
Slide 23: Annexures
ANNEXURES Munyaka
Slide 24: Operating model
Operating model Ballito Hills Kikuyu 24 Balwin Properties Results Presentation 31 August 2021
Slide 25: Turnkey development model
Turnkey development model 25 Balwin Properties Results Presentation 31 August 2021
Slide 26: 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 3 000 apartment
Slide 27: Governance process: Development opportunities
Governance process Development opportunities Development opportunities identified Greenlee Internal due diligence process followed: › Costs › Infrastructure › Zoning › Independent review of nodal residential demand Presented for approval to: › Executive Committee › Transactions Committee › Board for
Slide 28: Investment case
Investment case High gross margin for a listed residential property developer due to in-house construction management, in-house sales and strong budget controls Long-term development pipeline in key strategic locations High barriers to entry – low levies and efficiencies obtained through economies o
Slide 29: Development brands: Green collection brand
Development brands Green collection brand Model targets a slightly lower income consumer than the Classic Collection Prices range from R499 900 to R1 099 900 Developed on a phase-by-phase approach Distinctive architecture and high quality standards Residents have access to traditional lifestyle offe
Slide 30: Development brands: Classic collection brand
Development brands Classic collection brand Core development model The Huntsman One-, two-, and three-bedroom four storey walk up apartments Prices range from R699 900 to R2 249 900 Developments located in high density, high growth nodes across key metropolitan areas Benefits from economies of scale
Slide 31: Development brands: Signature collection brand
Development brands Signature collection brand Three elite model developments, The Polofields (Johannesburg, Waterfall), Paardevlei Lifestyle Estate (Western Cape, Somerset West) and Izinga Eco Estate (KwaZulu-Natal, Umhlanga) Apartments built to higher specifications with luxurious finishes Prices r