Kleinmeer Body Corporate Finance Portfolio Presentation to the Annual General Meeting 20 July 2016 Roy Singh

Presentation Outline Highlights of the AFS for the year-ended 28 February 2016 Status of the Reserves / Surplus as at 28/02/16 Status and update on Levies (incl. outstanding) as at 28/02/16 Budget of Income and Expenditure for 2016/17 – for approval at this Annual General Meeting (Levy increase and Expenses) Cost estimates of projects / proposals for 2016/17 and the impact on the accumulated reserves Current issues / concerns that are receiving the attention of the Trustees

Highlights of the Annual Financial Statements as at 28 February 2016 - Summary Total revenue for 2015/16: R3 998 013 (4.5% higher than 2014/15) Levies of R3 795 330 and Sundry income of R202 683 Total expenses: R3 794 658 (3.3% above 2014/15) (includes Taxation provision of R22 331) Surplus of income over expenses: R183 082 (5% of total income) Lower levy increase (4.5% for 2015/16 compared to 6% for 2015/16) and marginally higher “expenditure” resulted in a lower surplus for the year NB: Extra-ordinary maintenance / projects i.e. Solar Lighting etc. included in expenses therefore our reserves were not impacted!

Comments on Income and Expenditure: 2015/16 Income: Levy collections in line with Budget Sundry Income: Increased revenue from Clubhouse hire – increased use by residents! Lower revenue from Fines = better understanding of the Conduct Rules resulting in fewer transgressions/Fines!! A positive sign! Higher interest income – our reserves/surplus funds are optimally invested to earn higher yields/interest Expenses: General repairs and maintenance: 21% below budget Special projects / extra ordinary maintenance: R467 591 – included in expenses (these expenses should be allocated from reserves/surplus) Major expenses: Security & Garden Services in line with budgets Overall general expense line items either below or in line with budgets

Status of the Reserves as at 28/02/16 Reserves/surplus as at 01/03/2013: R772 385 Add: Surplus for the year to 02/2014: R495 641 Reserves/surplus as at 01/03/2014: R1 268 026 Add: Surplus for the year to 02/2015: R467 347 Balance as at 01/03/2015: R1 735 373 Add: Surplus for the year to 02/2016: R183 082 Balance as at 01/03/2016: R1 918 455 Add: Projected surplus for 2016/17: R375 404 Projected accumulated surplus: 28 Feb 2017: R2 293 859

Status of Levies (outstanding) as at 28/02/16 Total outstanding levies (in arrear) as per the Annual Financial Statements: 28 February 2016: R47 604 (0.0125%); (2014/15): R85 938 Current: R500; 30d: R31 227; 60d: R9 578; 90d: R6299 Levies in arrear as a percentage of annual levies: (0.0125%), previous year: (0.025%) Levies received in advance/prepaid: R151 052 Positive trend in levy collections to 30 June 2016

Budget of Income and Expenses for 2016 / 2017 Revised/Final Budget for 2016/17: Total Revenue: R4 260 825 (6.6% higher than 2015/2016) Levies of R3 933 248 : proposed Levy increase of 6% per annum - effective 01/03/16 Total Expenses: R3 885 421 (2.4% higher than 2015/16) Budget increases kept in line with inflation (CPI of 6% per annum) Wage increases projected at 8% per annum Insurance increase projected at 15% per annum All contracts: increases negotiated in line with CPI of 6% per annum Garden services: no increase due to change in service provider Clubhouse and Gym upgrades included in budgeted expenses

Cost estimates of proposed projects during 2016/17 and the impact on the accumulated Reserves Reserves as at 28/02/16: R1 918 455 Projected reserves for 2016/17: R375 404 Projected reserve status including 2016/17 surplus: R2 293 859 Less (estimated) cost of proposed “special” projects: Fibre to the Home (DSTV; Intercom and Internet): R450 000 Security upgrades: Under review, costs still to be determined Revised reserves at 28 February 2017: R1 843 859

Current Issues / Concerns that are receiving the attention of the Trustees FTTH – Fibre to the Home project – Approved at the SGM on 28/06. Fibre Infrastructure to be installed by “Telkom” within an Open Access platform (i.e. residents are free to choose their own choice of service providers for internet access; data and cellular telephony) Security upgrades – thorough investigation into the effectiveness of our Estate Security and developing a robust strategy to enhance our current Security to address breaches e.g. perimeter surveillance cameras; lighting; real time/live monitoring by Security personnel / Gatehouse etc

On behalf of the Kleinmeer Body Corporate Trustees Thank You for your support! Roy Singh 20 July 2016