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Land Bank 2006/7 Annual Report Presentation to the Portfolio Committee 7 November 2007

Land Bank 2006/7 Annual Report Presentation to the Portfolio Committee 7 November 2007. PRESENTATION OUTLINE. Introduction – Mr Lungile Mazwai: Chairperson Strategic Overview – Dr Phil Mohlahlane: Acting CEO Financial Review – Mr. Xolile Ncame: CFO

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Land Bank 2006/7 Annual Report Presentation to the Portfolio Committee 7 November 2007

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  1. Land Bank 2006/7 Annual ReportPresentation to the Portfolio Committee 7 November 2007

  2. PRESENTATION OUTLINE • Introduction – Mr Lungile Mazwai: Chairperson • Strategic Overview – Dr Phil Mohlahlane: Acting CEO • Financial Review – Mr. Xolile Ncame: CFO • Treasury Review – Mr Makgale Gwangwa: Treasurer • Questions and Answers

  3. STRATEGIC OVERVIEW Dr. Phil Mohlahlane Acting Chief Executive Officer

  4. Vision and Mission Vision: We aspire to utilise the Bank’s financial resources towards the development of farmers and the rural economy. Mission: Land Bank supports economic growth in South Africa through the development of farmers and rural economies by way of prudent investments that support the agricultural sector.

  5. The agricultural sector • Negative contribution of 13% by agriculture • Fluctuation of the Rand has had a severe impact on the agricultural exports market • Net farm income has declined by 48% over a three tear period ended 30 June 2007 • Maize industry experienced set backs in the past three years • Low price on 2005 • Reduced maize planting in 2006 • Drought in 2007

  6. Operationalising – New Business Model • The Bank plans to disburse R300 million to developing farmers in the 2007/2008 financial year, R1 billion and R2 billion in the 2008/2009 and 2009/2010 financial years respectively. • The rehabilitation of struggling projects – there are a number of projects in the Bank’s book that lack support, have poor funding structures and have no access to markets; • The existing entrepreneurial projects in the agriculture value chain, in particular those that need funding to create more jobs and for BEE; • New projects as identified by ASGISA; • Bio fuels.

  7. Operationalising – New Business Model • Special emphasis to be placed on growing the Bank’s business • concentrating on economic activities that will launch both subsistence and emerging farmers into commercial streams. • Achieved through the utilization of Co-ops, Provincial DFI’s and other support structures.

  8. Empowering developing farmers • Over the past five years, the Bank has given direct assistance to black businesses. • This can be translated into an impact on a number of households within rural and farming communities as well as individual black farmers. • At R793 million with 15 000 accounts, retail loans alone are estimated to have benefited 9 600 individual farmers.

  9. Joint Initiative on Priority Skills Acquisition (JIPSA) The demographic breakdown of bursaries is as follows: Eastern Cape - 5 KwaZulu-Natal- 7 Free State - 4 Gauteng - 22 Limpopo - 6 North West - 4 In the year 2006, R3.2 million was spent on bursaries.

  10. Financial review Xolile Ncame Chief Financial Officer

  11. Income Statement - Company

  12. Loan book and Provisioning

  13. Equity to Total Assets Ratio

  14. Audit Qualification • Land for Development Product may not be in terms of the Land Bank Act and this uncertainty has led the auditors to raise a qualification • Bank is in the process of selling this book

  15. Treasury Review Makgale Gwanga Treasurer

  16. Bank Borrowings

  17. Funding Portfolio

  18. Funding Program • Board approved R10bn DMTN program • R2bn long term bond to be issued • Arrangers and lead managers have been appointed • Road Shows will be conducted with investors

  19. THANK YOU

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