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KHULA ENTERPRISE FINANCE LIMITED 2007 ANNUAL FINANCIAL RESULTS

KHULA ENTERPRISE FINANCE LIMITED 2007 ANNUAL FINANCIAL RESULTS. Presented by Khula Managing Director: Xola Sithole. Introduction Highlights Annual Performance Focus for 2007/08 Concluding remarks. Outline. Record business approvals to channel partners of R746 million (60% increase)

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KHULA ENTERPRISE FINANCE LIMITED 2007 ANNUAL FINANCIAL RESULTS

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  1. KHULA ENTERPRISE FINANCE LIMITED2007 ANNUAL FINANCIAL RESULTS Presented by Khula Managing Director: Xola Sithole

  2. Introduction Highlights Annual Performance Focus for 2007/08 Concluding remarks Outline

  3. Record business approvals to channel partners of R746 million (60% increase) Business loan approvals to retail financial intermediaries (R298 million) for the first time exceeded approvals through the credit indemnity product (R266 million) Disbursements to channel partners increased to R343 million R100m investment in a reverse factoring product to improve working capital needs of SMEs Net profit grew by 41% to R31 million Overall: Excellent progress made in the execution of our growth strategy Highlights

  4. 2007 PERFORMANCE

  5. Delivery Channels and Access Points

  6. Deliberate shift to focus on defined target market and quality investments Better strategic alignment with channel partners Balance between financial sustainability and development impact Quality loan book Leverage existing infrastructure Balanced product portfolio Key strategic drivers

  7. Business approvals to channel partners Business approvals up by more than 60%

  8. Approvals per product type Change in product lending patterns

  9. Credit Indemnities Taken-up

  10. SME client profile • Significant increase in disbursements to Black SMEs • Investments in GP/WC/KZN account for 70% • Disbursements to women at 32% • 3 558 end-user facilities (ex group loans)

  11. Solid Financial Performance • Group net profit of R31 million: 41% • Strong growth of loan book : 22% • Robust interest revenue from lending operations: 18.9% • Significant improvement in property portfolio yield of 16% • Core business commitments at year end totaled R467 million • Investment income up by 16.5%

  12. Increased wholesale funding to non-banking retail financial intermediaries Move away from grant-dependent retail financial intermediaries to commercially-driven entities Formation of effective joint venture partnerships with selected corporate institutions Introduction of new products Higher interest rate environment Contributing Factors

  13. Grow value of approvals and disbursements to SME financing partners Grow and diversify property portfolio Maintain financial sustainability and improve process efficiencies Raise further funds from the dti to recapitalise Khula to maintain momentum Seek approval from the dti and Cabinet to lend directly Reposition the Khula Brand Increase awareness of Khula and its products Focus for 2007/8

  14. Renewed focus on SMEs by both the public and private sector Role of Khula is to bridge the financing gap The company has built a strong delivery platform to address the challenges of SMEs The organisation has implemented a number of key strategic interventions to enhance delivery and impact within the constraints of wholesale model Smart partnerships required to develop innovative products Khula balance sheet to be strengthened to support growth strategy Concluding remarks

  15. Siyabonga Re a leboha Ri a livhuwa Thank you

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