Briefing by RHLF on Annual Report 2010 BRIEFING ON THE RHLF ANNUAL REPORT 2010 TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS 15 October 2010 Cape Town Presented by: Jabulani Fakazi CEO TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS 15 October 2010 Cape Town Presented by: Jabulani Fakazi & Hennie Potgieter

Outline Key points Business Environment Impact performance 31 March 2010 Financial performance year ending 31 March 2010

Annual Report 2010 Key points Unqualified Audit Report from External Auditors – since inception Internal Auditors found control environment acceptable and adequate RHLF complied with all legislative and regulatory provisions RHLF reported a surplus of R28,9 million RHLF achieved most of its impact targets

Annual Report 2010 Business Environment South Africa officially entered recession during May 2009, its first in 17 years, High level of job losses – the estimate of job losses in 2009 calendar year was about 1 million jobs, Over indebtedness. It is estimated that household debt represents on average between 70% and 80% of their disposable income, Liquidity crunch was a major challenge in that RHLF intermediaries were finding it difficult to raise finance from the private financial institutions

Impact performance 31 March 2010: No. of loans Target for 2010: 37,400 Achieved: 33,112 Average Loan size R 4,866

Impact performance 31 March 2010

Impact performance 31 March 2010 68% 70% Target for 2010: 78% for “Housing” Achieved: 84% That = 27,814 of the new loans was used for “housing”

Impact performance 31 March 2010 Large number of small loans Ave below R2000 Target for 2010: 20% to households earning R6000 or more pm Achieved: 21% to households earning R6000 or more pm Target for 2010: 65% to households earning R3500 or less pm Achieved: 62% to households earning R3500 or less pm

Impact performance 31 March 2010 68%

Impact performance 31 March 2010: Provincial Distribution Target for 2010: 80% outside Gauteng Achieved : 88% outside Gauteng

Impact performance 31 March 2010

Impact performance 31 March 2010 RHLF Development Impact in Presidential Rural Nodes

Financial performance year ending 31 March 2010 Cumulative Disbursements since 1996 = R739 million

Financial performance year ending 31 March 2010 Key Performance – Actual vs. Budget

Financial performance year ending 31 March 2010

Financial performance year ending 31 March 2010

Financial performance year ending 31 March 2010

Financial performance year ending 31 March 2010 Target for 2010: R9,879m Achieved: R11,164m Surplus including profit on disposal of Investment = R29,719m

Annual Report 2010 Thank You