1. ANNUAL REPORT 2010 Morgan Pillay 14 OCTOBER 2010

2. CONTENT 1.The mandate 2.The year in perspective 3.Development performance 2009/10 4.Financial performance 2009/10 5.Breakdown of reasons for poor performance 6.Key strategic issues 7.Conclusion

3. THE MANDATE NURCHA ensures the availability of bridging finance to small, medium and established contractors building low and moderate income housing and related community facilities and infrastructure

4. THE YEAR IN PERSPECTIVE  Poor economic trading conditions  Slow growth in business  Contracts signed reduced by 14%  Houses built improved by 7%  Value of loans increased 26%  Infrastructure projects completed increased by 71%  Mobilized private sector funding R135m  High cost of financing  Persistent non-payment from government departments

5. THE YEAR IN PERSPECTIVE (cont)  Government recapitalisation of R250m did not materialise  Expanding geographical footprint and coverage improved  Alignment with intermediaries strengthened and 30 % shareholding finalised

7. HOUSES IN APPROVED LOANS AND COMPLETED HOUSES

8. LOAN AND PROJECT VALUES (R MILLIONS)

9. COMPLETED HOUSES/SITES

10. NUMBER OF HOUSES/SITES IN APPROVED LOANS

11. NUMBER OF PROJECT LOANS APPROVED BY PROVINCES

12. VALUE OF LOANS FINANCED (R MILLIONS)

13. VALUE OF PROJECTS FINANCED (R MILLIONS)

14. ANNUAL EMPOWERMENT STATUS Apr 08-Mar 09Apr 09-Mar 10 Value of loans (Actual) Number of contractors11198 Number of 1 st time applicants5970 Black owned86%301,474,724.1680.5%268,655,382.11 Non BEE14%111,435,775.1019.5%286,158,888.34 TOTAL100%412,910,499.26100%554,814,270.45 Male owned97%400,267,815.2678.3%484,791,495.84 Female owned3%12,642,684.0021.7%70,022,774.61 TOTAL100%412,910,499.26100%554,814,270.45 Emerging80%288,654,088.2173%231,476,772.11 Established20%124,256,411.0527%323,337,498.34 TOTAL100%412,910,499.26100%554,814,270.45

16. KEY STATISTICAL INFORMATION YEAR ENDED 31 MARCH 2010 20102009% INCREASE/ (DECREASE) R’000 Income from operations43,01249,259-12.7 Administration expenses40,05836,08911.0 (Deficit)/surplus for the year-18,8263,149-697.8 Loans for construction projects403,527402,0760.4 Provision for losses51,38436,77439.7 Bank loans to finance projects152,406106,21143.5

17. CAPACITY REPORT per programme AS AT 31 MARCH 2010 CONSOLIDATEDNURCHAEMERGING INFRA- STRUCTURE ESTABLISHED SUBSIDY & AFFORDABLE EMERGING SUBSIDY Consolidated capacity 544,464361,7667,11880,87794,704 Loans granted & committed (334,395)(111,000)(55,051)(82,380)(85,963) Pending loans(84,454)(19,850)0(64,604)0 FMO loan repayment (30,400)0 00 Top-up by NURCHA 0(144,440)78,33366,1070 95,21586,476008,741

18. BREAKDOWN OF REASONS FOR POOR PERFORMANCE  Failure by employers to allocate tenders  Late payments by employers especially state organs (government departments and SOE)  Reliance on final accounts and retention money to settle the debt  Budgetary constraints by employer departments  General state of the economy. Commercial banks not willing to grant loans to end users

19. BREAKDOWN OF REASONS FOR POOR PERFORMANCE (cont)  Lack of loan facilities at concessionary rates  Continued decrease of own funds which would be used to leverage loans from the private financiers

20. KEY STRATEGIC ISSUES  Alignment to Outcome 8  Need to raise additional funding from the State  Non-payment from government departments hampering business growth  Leverage regional footprint and capacity  Technical assistance window must be considered to foster integrated human settlement planning

21. CONCLUSION R 10 BILLION VALUE OF PROJECTS SUPPORTED SINCE INCEPTION NURCHA “GOING BEYOND FINANCE”