[PPT] - HERMANUSDOORNS SHAREBLOCK LIMITED AGM 2 nd October 2010 AGENDA PowerPoint Presentation

SLIDE 1

HERMANUSDOORNS SHAREBLOCK LIMITED

AGM 2nd October 2010

SLIDE 2

AGENDA

Welcome

Special welcome to all new shareholders

Attendance Register Notice Convening the Meeting and Quorum

AGM 2010 2

Appointment of Referee and assistant to administer and count votes

Apologies and Proxies MD’s Report

2nd October 2010

SLIDE 3

AGENDA … cont

Presentation of Financial Statements Ordinary Business

Resolutions 1,2, and 3

Capital Fund Utilisation Re-election of Directors

AGM 2010 3

Re-election of Directors Update on Business Plan General Closure Lunch – directly after the meeting

2nd October 2010

SLIDE 4

Matters from last AGM

Card System and voting rights

Card colours next year (NOW) will reflect ALL

f the outstanding services

No exception Farm access WILL be denied to shareholders if

AGM 2010 4

Farm access WILL be denied to shareholders if they are not FULLY paid up on ALL monies due to the Company

Deferred due to complexity of change in administration WILL be enforced next year

2nd October 2010

SLIDE 5

Matters from last AGM

New resolutions

Last year a few proposals were tabled to be resolutions this year

Change the Permanent Levy structure to be the

AGM 2010 5

Change the Permanent Levy structure to be the same as Non-residents rather than a premium Levy the sites in the mountain and on the river a premium over the others

Both these motions were withdrawn during the course of the year

2nd October 2010

SLIDE 6

Matters from last AGM

Farm Manager Arrangement

The amount of R 109k is reflected in the AFS for the year ended 28 Feb 2010 Segregation of duties implemented Stricter controls and procedures are being

AGM 2010 6

Stricter controls and procedures are being implemented on an ongoing basis

Water System Proposal

This project, due to the capital required has not been tabled this year as an alternative, cheaper and more efficient alternatives are still being considered

2nd October 2010

SLIDE 7

MD’s Report

AGM 2010 7

MD’s Report

2nd October 2010

SLIDE 8

MD’s Report

Corporate Governance

A Key focus of the Board over the last 15 months Actions Taken

Establishment of an Audit Committee to increase compliance and improve reporting Involved a lot of work, so thanks to

Attie (chair) Willie Botha Christo (Auditor)

Result – more comprehensive reporting

AGM 2010 8 2nd October 2010

SLIDE 9

MD’s Report

Corporate Governance

Actions Taken

Development of a Approvals framework

Details the process of all decisions and levels of Authority at Board level Posted on the Web Better improve transparency

Segregation of Duties Segregation of Duties

Farm employees not Directors Inclusion of all activities under the company management Has increased risks

Continued implementation of procedures

Building activity Authority levels Expenses Detailed monthly operations report circulated to Board members

Improved communications

Via Web Via Newsletters

AGM 2010 9 2nd October 2010

SLIDE 10

MD’s Report

A key focus of our medium term strategy remains on Fauna and Flora

Bush clearing

Good results Will continue over the medium term

AGM 2010 10

Will continue over the medium term

Rehabilitation of “ Borrow Pits”

New process of managing the “Pit” will be introduced New processes will be established to optimise “borrowing” and rehabilitation versus the cost

Modification of many roads to prevent storm damage

Significant work done on all perimeter roads – improving access and reducing threat of fire

Game number control through capture and NOT hunting a continued philosophy

2nd October 2010

SLIDE 11

MD’s Report

Infrastructure improvement

Road upgrading remains an ongoing priority Roads into the mountain will be upgraded (strip concrete) to allow better accessibility

AGM 2010 11

(strip concrete) to allow better accessibility

Game viewing Fire fighting and prevention

Improved Water system has been identified as a need but is currently on hold

Board seeking cheaper alternatives

Continued (annual) veld assessment

2nd October 2010

SLIDE 12

New Procedures

As discussed last year all work undertaken on the farm will be for the farm and recorded as such.

VAT Invoices will be sent from the office

Created some difficulties in the handover process, especially Electricity

AGM 2010 12

Created some difficulties in the handover process, especially Electricity

Being addressed on “One on One” basis Will be resolved

Sand usage

Still using the “pit” but investigating better ways to manage this resource

2nd October 2010

SLIDE 13

Farm Manager’s House

Private House Potential conflict of interest Plans and contract signed off by the Board Corporate governance Corporate governance

Building contract to be audited Reviewed as part of the Audit committee tasks

Attie Du Plessis (Chair) Willie Botha

2nd October 2010 AGM 2010 13

SLIDE 14

Electricity

Eskom Charges made up as follows:

Service charge Network charge Energy charge Energy charge Environmental Charge

2nd October 2010 AGM 2010 14

SLIDE 15

Electricity Calculation

Aug '10

Rands

Sept '10

Rands

Mar '11

Rands

Service Charge Per Day 8.29 9.84 10.82 Network Charge Per Day 28.77 29.53 32.48 Energy Charge KWh 0.71 0.95 1.19 Environmental charge KWh 0.019 0.020 0.022 Rate Unit

f

Measure Detail

2nd October 2010 AGM 2010 15

Environmental charge KWh 0.019 0.020 0.022 Average Monthly Usage 85000 Rands Rands Rands Service Charge 513.98 610.08 671.09 Network Charge 1,783.74 1,830.86 2,013.95 Energy Charge 60,350.00 80,750.00 100,937.50 Environmental charge 1,615.00 1,700.00 1,870.00 Total 64,262.72 84,890.94 105,492.53

Cost per KWh 0.76 1.00 1.24

SLIDE 16

Electricity Tariffs

Tariff rates

Basic Charge R 30 per month meter and reading charge

Usage

Current

R 0.80 R 0.80 per KWh (Plus VAT)

From 1st October 2010

R 1.00 per KWh (Plus VAT)

From 1 March 2011

R 1.25 per KWh (Plus VAT) Reading every 3 months

R 90 Basic charge Usage charge @ above rate

2nd October 2010 AGM 2010 16

SLIDE 17

Game Capture

Game Capture the preferred method of game control Culling no longer taking place Revenue to be ploughed back into Fauna and Flaura – mainly into bush clearing

AGM 2010 17

and Flaura – mainly into bush clearing 2010/11 net receipts from Game capture were R36k No Game capture planned this season Next season activity will be dependent on rainfall

2nd October 2010

SLIDE 18

Game Count

Description Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Impala 125 160 190 110 129 125 115

120

Blesbok 30 50 35 25 22 9 9

9

Water Buck 13 16 20 21 30 25 30

25

Kudu 65 80 100 90 101 100 100

115

Giraffe 2 2 5 6 8 12 13

15

Bosbok 20 40 45 40 39 40 40

40

2nd October 2010 AGM 2010 18

Bosbok 20 40 45 40 39 40 40

40

Warthog 25 25 40 40 42 40 40

40

Blouwildebees 24 33 38 40 45 30 35

30

Zebra 9 9 10 9 10 13 15

17

Gemsbok 9 7 7 6 6 5 5

6

Steenbok 11 12 15 16 16 16 16

16

Rooihartebees 19 19 23 21 24 28 30

25

Klipspringer 14 14 15 20 20 20 20

20

Mount Reedbuck 10 10 10 10

10

Eland 5

5

Nyala 1

5

SLIDE 19

Rainfall History

200 250 300 800 1000 1200 fal mm infall mm

HERMANUSDOORNS _ RAINFALL

Cummulative Monthly

AGM 2010 19

50 100 150 200 400 600

Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 98/9 1999/2000 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/8 2008/9 2009/10 531 1,030 341 338 348 582 382 654 365 777 719 780

Monthly Rainfal Cummulative Rain

2nd October 2010

SLIDE 20

Rainfall History

600 700 800 900 1,000 1,100 m

Annual Rainfall vs Average

Annual All Time Average

AGM 2010 20

98/9 99/0 00/1 01/2 02/3 03/4 04/5 05/6 06/7 07/8 08/9 09/10 Annual 531 1,03 341 338 348 582 382 654 365 777 719 780 All Time Average 571 571 571 571 571 571 571 571 571 571 571 571

100

200 300 400 500 600 Rainfall mm

2nd October 2010

SLIDE 21

Rainfall History

650 700 750 800

RAINFALL HISTORY 10, 7, 5, 3 Year Trend Lines

AGM 2010 21

All 00/01 to 09/1008/09 03/4 to 09/10 05/6 to 09/10 07/8 to 09/10 All 10 7 5 3 Trend Lines 571 529 608 659 759

400 450 500 550 600 650

mm Year

2nd October 2010

SLIDE 22

The Key Trend Lines

AGM 2010 22

The Key Trend Lines

2nd October 2010

SLIDE 23

Levy Income

800 1000 1200

00)

Levy Income

AGM 2010 23

200 400 600

Rands (R'00

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2nd October 2010

SLIDE 24

Levy Structure

10,000 12,000 14,000

nnum

Levy Structure

AGM 2009 24

2,000 4,000 6,000 8,000

Rands per An

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1

SLIDE 25

Levy Income - Budgeted

1000 1200 1400

000)

Levy Income

AGM 2010 25

200 400 600 800

Rands (R'0

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 ( F ) 2nd October 2010

SLIDE 26

Investment Income

30 35 40 45

000)

Investment Income

AGM 2010 26

5 10 15 20 25

Rands (R'0

2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 ( F ) 2nd October 2010

SLIDE 27

Growth in Equity

6.0 7.0 8.0

ns)

Capital and Reserves

AGM 2010 27

0.0 1.0 2.0 3.0 4.0 5.0

Rands (Million

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1

2nd October 2010

SLIDE 28

Total Debt

1,600 1,800 2,000

)

Total Debt

AGM 2010 28

200 400 600 800 1,000 1,200 1,400

Rands (R'000)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2nd October 2010

SLIDE 29

Share Price

300,000 350,000 400,000 450,000

00)

Share Price

AGM 2010 29

50,000 100,000 150,000 200,000 250,000 300,000

Rands (R'00

1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 7 2 8 2 9 2 1 2nd October 2010

SLIDE 30

Key Projects completed

Swimming pool upgrade

Re marbelite Re-paint of rocks Installation of braai area Installation of braai area Erection of thatch gazebo’s

Reparation of “Waterbok Pan” Upgrade of Leopard Trail and change of start

2nd October 2010 AGM 2010 30

SLIDE 31

Key Projects completed

Main Road fence upgrade Sealing of Porcupine Dam Erection of signage

Houses Direction Boards Notices Notices Note:

Standardised signage Made by the Farm (special deal) Please remove all “non-standard” signs by 21 Dec 2010

Upgrade of Staff Quarters Concrete strip road in Mountain

2nd October 2010 AGM 2010 31

SLIDE 32

Staff management

Management of the staff rests SOLELY with the Board and its management structure All staff report directly to the farm manager who in in turn reports directly to the Board who in in turn reports directly to the Board Shareholders MUST NOT deal with any staff members directly and MUST deal through the established channels Staff Quarters are “Out of Bounds” to shareholders

2nd October 2010 AGM 2010 32

SLIDE 33

Unaccompanied Visitors

Discussed often in order to protect privacy and the shareholders assets Visitors MAY NOT visit the farm without a shareholder present a shareholder present A continual problem We will evict these visitors at great embarrassment to the particular shareholder

2nd October 2010 AGM 2010 33

SLIDE 34

Late Levies

Late levies

At 31 March Debtors were R 535k

last year they were R 440k

As at 30 September they were still R 191k

AGM 2010 34

Last year they were R165k

UNACCEPTABLE

Sadly – Its often the same people

Cost of late payments = R 5.2 k/month

2nd October 2010

SLIDE 35

Payment Defaulters

A continuous problem Will adopt a “Zero Tolerance” approach

Legal action Auction of assets to recover outstanding Auction of assets to recover outstanding payments Inclusive of Services Offered This a Real life Situation – not theory

2nd October 2010 AGM 2010 35

SLIDE 36

Lien on shares for all monies owing
Directors may sell in any manner they see fit
14 days notice

Articles of Association

Members right of use suspended
Company has first lien
Directors sell upon terms & conditions they see fit

Use

Remedies for late payment

Directors sell upon terms & conditions they see fit
14 days notice
Immediate ejectment

Use Agreement

As long as levies overdue, right to access to

property and use of unit is AUTOMATICALLY suspended

Share Block may be sold by Public Auction
Shareholder liable for costs

Conditions

f

Purchase

SLIDE 37

MD’s Report

Year Ended Feb 2010

All in all a pretty good year Concern over the number of shares on the market

AGM 2010 37

market

Attributable to prevailing economic conditions

Continuous improvement of the Balance Sheet Continued focus on cost containment Application of an appropriate levy to sustain the business

Added value income now added to income stream

2nd October 2010

SLIDE 38

MD’s Report … Conclusion

Thank you to

The shareholders The auditors The Non Execs

AGM 2010 38

The Non Execs My fellow directors

And I look forward to another great year

2nd October 2010

SLIDE 39

Ordinary Business

AGM 2010 39

Ordinary Business

2nd October 2010

SLIDE 40

Voting Procedure

All done by Poll One share – one vote Counting independently done

2 volunteers

AGM 2010 40

2 volunteers Board Corresponding totals accepted

2nd October 2010

SLIDE 41

Ordinary

AGM 2010 41

Business

2nd October 2010

SLIDE 42

Ordinary Business

Ordinary Resolution 1

Resolved as ordinary resolution

AGM 2010 42

Resolved as ordinary resolution #1 to approve the minutes of the Annual General Meeting Held on 8th August 2009

2nd October 2010

SLIDE 43

Annual Financial

AGM 2010 43

Financial Statements

2nd October 2010

SLIDE 44

2009 Annual Financial Statements

At last years AGM

Certain reporting changes were required to be made to the 2009 The issues were subsequently addressed The issues were subsequently addressed by the audit committee Resulted in certain adjustments and restatements of the 2009 comparative numbers in the 2010 AFS

2nd October 2010 AGM 2010 44

SLIDE 45

Assets

Property Up by 3.3%

AGM 2010 45 2nd October 2010

Current Assets Up by 10.1% Cash Up by 10.1%

SLIDE 46

Equity and Liabilities

Up by 4.3%

AGM 2010 46

Up by 14.7% Long Term Levy

2nd October 2010

SLIDE 47

Levies Received in Advance

Period As at 28 Feb ‘10

1 March 2010 to 28 Feb 2011 1,209,539 1 March 2008 to 28 Feb 2013 18,860

AGM 2010 47

1 March 2008 to 28 Feb 2013 18,860 1 March 2009 to 29 Feb 2014 151,096 1 March 2010 to 28 Feb 2015 197,874 TOTAL – Normal Levy 1,577,369 Capital Levy – 1 March 2010 to 28 Feb 2011 139,500 TOTAL 1,716,869

2nd October 2010

SLIDE 48

Use of Capital Fund

Detail Changes Balance Balance - 1 Mar 2008 297,807 Levies - 2009 147,780 455,587 Back Actor (250,000) 195,587 Back Actor (250,000) 195,587 Levies - 2010 152,237 347,824 Bakkie (212,234) 135,490 Balance at year 2009 135,490 New Levy – Feb 2010/11 139.500 274,990 Balance at Feb 2010 274,990

2nd October 2010 AGM 2010 48

SLIDE 49

Income Evolution

Detail 2012 Budget 2011 Budget 2010 Actual 2010 Budget 2009 2008 Levies 1,500,000 1,374,347 1,260,869 1,211,691 1,101,537 850,525 Other Income 416,300 383,000 337,347 269,000 299,309 241,885 Investment 45,000 45,000 29,543 45,000 30,520 30,688 Game 50,000 50,000

25,000

226,603 67,588

2nd October 2010 AGM 2010 49

Other 10,000 10,000 7,543 1,018 72,983 Farm Manager

109,645

Municipal 162,500 125,000 107,202 75,000 40,919 66,691 Shop and Pub 6,000 5,000 2,648 4,000 249 3,935 Cleaning 26,400 24,000 21,097 Alarm 26,400 24,000 20,082 Building & maint 90,000 100,000 39,587 120,000 TOTAL 1,916,300 1,757,347 1,598,216 1,480,691 1,400,846 1,092,410

SLIDE 50

Income and Expenses Analysis

2012 Budget

2012 (B) vs 2011 (B)

2011 Budget

2011 (B) vs 2010 (A)

2010 Actual

2010 (A) vs 2010 (B) 2010 (A) vs 2009 (A)

2010 Budget 2009 Actual

2009 (A) vs 2008 (A)

2008 Actual Income 1,916,300

9.0% 1,757,347 10.0% 1,598,216 7.9% 23.1% 1,480,691

1,298,626

37.0%

947,904 Standard Levy 1,359,000

10.2% 1,233,347 11.2% 1,108,632 3.5% 29.8% 1,070,691

853,817

21.7%

701,622 Capital Levy 141,000

0.0%

141,000

7.4%

152,237

8.0% 4.6%

141,000 145,500

2.3%

148,904 Interest 45,000

0.0%

45,000

52.3%

29,543

34.3%
3.2%

45,000 30,520

0.5%

30,688 Detail AGM 2010 50 2nd October 2010 Interest 45,000

0.0%

45,000

52.3%

29,543

34.3%
3.2%

45,000 30,520

0.5%

30,688 Other Income 208,800

2.0%

213,000

6.2%

200,602

34.6%

149,000 227,870 Recoveries 162,500

30.0%

125,000

16.6%

107,202

42.9% 162.0%

75,000 40,919

38.6%

66,691 Operational Expenses 1,905,793

9.7% 1,736,831 14.4% 1,518,073 10.3% 19.4% 1,376,469

1,271,123

21.0% 1,050,789

Admin and Auditing 153,070

13.0%

135,460

18.0%

114,797

31.5% 40.8%

87,276 81,538

16.6%

69,925 Depreciation 216,000

10.0%

240,000

0.9%

237,910

48.6% 32.7%

160,147 179,296

49.7%

119,738 Employee Costs 693,688

10.0%

630,625

20.0%

525,521

5.2% 17.9%

499,333 445,833

22.3%

364,547 Motor Vehicle Expenses 223,483

8.0%

206,929

10.0%

188,117

1.9% 9.0%

184,622 172,554

16.2%

206,000 Repairs and Maintenance 211,338

8.0%

195,683

10.0%

177,894

15.0% 23.1%

154,662 144,544

49.1%

96,923 Utilities 296,069

32.0%

224,295

25.0%

179,436

13.7%

24.3%

207,960 144,320

74.6%

82,676 Other 112,145

8.0%

103,838

10.0%

94,398

14.5%

8.4%

82,469 103,038

7.2%

110,980 Surplus (Deficit) 10,507

48.8%

20,517

74.4%

80,143

23.1%

191.4%

104,222 27,503

126.7%

(102,885)

SLIDE 51

2012 Budget

2012 (B) vs 2011 (B)

2011 Budget

2011 (B) vs 2010 (A)

2010 Actual

2010 (A) vs 2010 (B)

2010 Budget Income 1,916,300

9.0%

1,757,347

10.0%

1,598,216

7.9%

1,480,691 Normal Income 1,916,300

9.0%

1,757,347

18.0%

1,489,216

0.6%

1,480,691 Levy Portion 1,500,000

9.1%

1,374,347

9.0%

1,260,869 1,211,691 Detail

Income and Expenses Analysis

Levy Portion 1,500,000

9.1%

1,374,347

9.0%

1,260,869 1,211,691 One Off 109,000 Operational Expenses 1,905,793

9.7%

1,736,831

14.4%

1,518,073

10.3%

1,376,469 Admin and Auditing 153,070

13.0%

135,460

18.0%

114,797

31.5%

87,276 Depreciation 216,000

10.0%

240,000

0.9%

237,910

48.6%

160,147 Employee Costs 693,688

10.0%

630,625

20.0%

525,521

5.2%

499,333 Motor Vehicle Expenses 223,483

8.0%

206,929

10.0%

188,117

1.9%

184,622 Repairs and Maintenance 211,338

8.0%

195,683

10.0%

177,894

15.0%

154,662 Utilities 296,069

32.0%

224,295

25.0%

179,436

13.7%

207,960 Other 112,145

8.0%

103,838

10.0%

94,398

14.5%

82,469 Surplus (Deficit) 10,507

48.8%

20,517

74.4%

80,143

23.1%

104,222

AGM 2010 51 2nd October 2010

SLIDE 52

Levy Reconciliation

No Levy Total No Levy Total Normal 69 9,298 641,579 71 11,623 825,219 Perm 1 14,877 14,877 3 18,596 55,789 Syn 2 3 12,398 37,193 3 15,497 46,491 Syn 3 2 15,497 30,994 2 19,371 38,743 2010 2009 Desc

2nd October 2010 AGM 2010 52

Syn 4 18,596

1

23,246 23,246 LT a 9 6,579 59,211

6,579
LT b

4 7,105 28,421 4 7,105 28,421 LT c 3 7,807 23,421 3 7,807 23,421 LT d 1 8,421 8,421 1 8,421 8,421 LT e 1 9,298 9,298 1 9,298 9,298 LT f 11,623

3

11,623 34,868 LT g 1 15,497 15,497 Totals 853,817 1,108,632

SLIDE 53

Anticipated Levy – 2011/12

2011/12 Projected Levy Structure Rands Rands % Incr

ver

2010/11 1,736,831 1,905,793 9.7% Added Revenue Services 58,800 Forecast Expenses - 2010/11 Budgeted Expenses - 2011/12

AGM 2010 53 2nd October 2010

Services 58,800 Utilities 162,500 Interest 45,000 Game (not used) 50,000 Other 151,000 Building 90,000 557,300 Adjusted Levy Calculation 1,348,493 9.3% Levy per shareholder (Non Res) 13,788 9.2% Capital Levy per annum 1,500 0.0% 15,288 8.2% Total Levy

SLIDE 54

Ordinary Business

Ordinary Resolution 2

Resolved as ordinary resolution #2 to receive and adopt the Company’s

AGM 2010 54

receive and adopt the Company’s annual financial statements for the year ended 28th February 2010, together with the reports of the directors and auditors.

2nd October 2010

SLIDE 55

Ordinary Business

Ordinary Resolution 3

Resolved as ordinary resolution #3 to re-appoint Russel James and

AGM 2010 55

to re-appoint Russel James and Company (Previously Core Chartered Accountants (SA)) as the auditors until the conclusion of the next Annual General Meeting.

2nd October 2010

SLIDE 56

Retirement and Re-election

Two Directors retire and submit themselves for re-election

John Hill Christine Konz

Done by secret ballot

AGM 2010 56

Done by secret ballot

Voting forms were distributed at registration Independent panel to collect ballot papers and count votes Votes FOR = person stays on the Board Votes Against = person removed from the Board

Meeting to continue

Results to be announced prior to conclusion of the meeting

2nd October 2010

SLIDE 57

Medium / Long

AGM 2010 57

Term Plans

2nd October 2010

SLIDE 58

Long Term Plans

Financial stability of the Company remains a core objective

Levy structure now more in line with budgeted expenses but covers only

AGM 2010 58

budgeted expenses but covers only

perational expenses

Additional income assisting to reduce Levy burden Capital levy raised regularly Other mechanisms will be considered if and when further land acquisition is agreed to

2nd October 2010

SLIDE 59

Medium to Long Term Plans

Further Development of Mountain

Improved Road infrastructure

As per proposal

Provide better access to the river Fire prevention and fighting As per funding proposal

New Dam in Breekloof river

AGM 2010 59

New Dam in Breekloof river

On completion of excavation of sand for roads, this will be turned into a Dam – “Kudu Dam”

“Waterbok Pan” upgrade

Already underway

“Porcupine Dam” upgrade

Raise level of dam wall Create permanent water Reroute access road

2nd October 2010

SLIDE 60

Medium to Long Term Plans

Repair to Waterbok Pan

Rerouting of road NOT to go over the dam wall Relocation of hide to southern side of the pan Repair to concrete work

AGM 2010 60

Repair to concrete work

Creation of “Building material” yard next to married quarters Reservoir construction – already discussed

2nd October 2010

SLIDE 61

Long Term Plans

Fauna and Flora Issues

A key focus of the Board over the coming years Continued veld management

AGM 2010 61

Sekelbos removal

Soil erosion minimalisation

Eastern boundary currently being fixed

Sand pit management

Better way to utilise the farm resources in eco friendly manner

2nd October 2010

SLIDE 62

Long Term Plans

Continual upgrading of Farm Assets

Fencing – continuous upgrading and ultimate complete electrification

Continuous

AGM 2010 62

Continuous Upgrading of roads to improve drainage and reduce water damage

Continuous

2nd October 2010

SLIDE 63

General

AGM 2010 63

General

2nd October 2010

SLIDE 64

General Issues

Building Procedures Procedures for Selling Shares Speeding Cleaning Services

AGM 2010 64

Cleaning Services Security Communications Shareholder responsibilities Legal issues

2nd October 2010

SLIDE 65

Building Rules

New set of Building rules drawn up and being considered for implementation, detailing

Plan approval Materials allowed Contractor Options Contractor Options

Owner contractor Private Contractor Hermanusdoorns

Delivery and management of materials Contracting of staff Compliance certificates prior to occupation Insurance

2nd October 2010 AGM 2010 65

SLIDE 66

Building Rules

Plan approval

Plans can ONLY be approved by the Board Must specify

Contractor Materials

Roof Exterior walls

Process

Submit to Farm manager with site layout Forwarded to the Board Reply within 5 weeks

2nd October 2010 AGM 2010 66

SLIDE 67

Building Rules

Materials allowed – New development

Roof

Thatch Black tiles or slate

Outer Walls Outer Walls

Klinker or face brick Textured plaster from specified options

Materials Allowed - Extensions

Preferably as above Consideration given to “matching” existing buildings – within reason

2nd October 2010 AGM 2010 67

SLIDE 68

Building Rules

Contractor Options

Hermanusdoorns

Preferred route

Owner contractor or Private Contractor Owner contractor or Private Contractor

Requires involvement of farm Manager and

therefore a fee will be charged by the farm to the developer

2nd October 2010 AGM 2010 68

SLIDE 69

Building Rules

Specific Rules to ALL contractors

Contractors must be registered with National Home Builders Registration Council (HNBRC) – proof required All contractors, sub-contractors and staff must be registered with the farm and copies of ID All contractors, sub-contractors and staff must be registered with the farm and copies of ID documents submitted prior to commencement

f any work.

All projects will be registered with the farm BEFORE work is commenced.

A R5,000 deposit must be lodged This is fully refundable provided the site cleared and necessary certificates are lodged

2nd October 2010 AGM 2010 69

SLIDE 70

Building Rules

Specific Rules to ALL contractors

The Farm will provide site clearance, water (one) connection, electrical (one) connection and sewage connection to the site

These costs will be for the Farm account provided that the site is within 50 meters of an electrical connection point site is within 50 meters of an electrical connection point

Contractor staff MUST obey the rules of the farm

Litter Speed limits Open fires Protection of Fauna and Flora

Contracting staff are FORBIDDEN to sleep on the site – accommodation will be provided at a reasonable cost (if available)

2nd October 2010 AGM 2010 70

SLIDE 71

Building Rules

Specific Rules to ALL contractors

The Owner assumes FULL responsibility for the actions of the contractor. If the Farm is the contractor, the farm manager assumes the contractor, the farm manager assumes responsibility All deliveries of materials to the farm must be pre-arranged with the farm manager at least 24 hours prior to the delivery. A specified time must also be submitted.

2nd October 2010 AGM 2010 71

SLIDE 72

Building Rules

Compliance certificates prior to

ccupation as follows:

Engineers certificate for Foundations and structure structure Roof certificate Electrical certificate Plumbing certificate Gas installation certificate

2nd October 2010 AGM 2010 72

SLIDE 73

Building Rules

Insurance

All contractors MUST carry insurance covering Public Liability. Proof of such insurance must be submitted prior to work insurance must be submitted prior to work being undertaken

2nd October 2010 AGM 2010 73

SLIDE 74

Building Refresh

Update of all:

Plans Certificates

Electrical Engineering Plumbing

Please forward all these by 31 December

After which the farm will contract appointed professionals to undertake this Cost to shareholder

2nd October 2010 AGM 2010 74

SLIDE 75

Radios

A frequency change is required

All radios submitted to Farm Manager No charge

Encourage all to get radio connectivity Encourage all to get radio connectivity

2nd October 2010 AGM 2010 75

SLIDE 76

Selling of Shares

3 parties involved

1. Seller 2. Purchaser 3. Hermanusdoorns

1. Enter in a sale agreement with the purchaser 2. Notify the office of this with any conditions that may apply and which party will pay the costs of transfer (R1200) 3. Transfer duties ARE payable at the specified rate

AGM 2010 76

3. Transfer duties ARE payable at the specified rate 4. Purchaser must enter into agreement with Hermanusdoorns

Main Agreement
Use agreement
Articles and Memo of Association
Statutory Information
Conditions of Purchase

5. Electricity Certificate of compliance must be submitted if a dwelling exists 6. Notify office when transfer can take effect

All transfers administered by Hermanusdoorns Limited

7. Copies of Share certificate will be sent to new owner when registered

2nd October 2010

SLIDE 77

Selling of Shares - Agents

Sale of shares and Agents provide 4

ptions
1. Private sale
2. Agent appointed

AGM 2010 77

2. Agent appointed
3. The Farm is appointed the Sole Agent
4. Joint Agent appointed – Farm and an

Agent

2nd October 2010

SLIDE 78

Selling of Shares – Private Sale

All responsibility lies with the Seller

Introduction to the farm Explanation of the various agreements Contracting with:

The Purchaser The Purchaser The Company

Liaison with

Deeds Office SARS

Showing the share

Meeting at the farm, etc

No Involvement from Board, farm manager, farm staff

2nd October 2010 AGM 2010 78

NB

SLIDE 79

Selling of Shares – Agent Only

All responsibility lies with the AGENT

Introduction to the farm Explanation of the various agreements Contracting with:

The Purchaser The Company

2nd October 2010 AGM 2010 79

The Company

Liaison with

Deeds Office SARS

Showing the share

Meeting at the farm, etc

No Involvement from Board, farm manager, farm staff

NB

SLIDE 80

Selling of Shares – Farm Only

All responsibility lies with the FARM

Introduction to the farm Explanation of the various agreements Contracting with:

The Purchaser

2nd October 2010 AGM 2010 80

The Purchaser The Company

Liaison with

Deeds Office SARS

Showing the share

Meeting at the farm, etc

Commission is 1% less than normal agents fees!!!!

SLIDE 81

Selling of Shares – Dual Roles

Responsibilities shared between the Farm and the Agent Agent responsibilities

Marketing of the Property Introduction of the proposed seller Liaison with

Deeds Office SARS

Farm Responsibilities

2nd October 2010 AGM 2010 81

Farm Responsibilities

Introduction to the farm Explanation of the various agreements Contracting with:

The Purchaser The Company

Showing the share

Meeting at the farm, etc

Commission shared on agreed basis - 50% each

SLIDE 82

Shareholder requests

Change the constitution to allow shareholders to nominate and elect Directors - Peppermans Increase in the number of Directors - Increase in the number of Directors - Peppermans Allow syndicate ownership - Moore

2nd October 2010 AGM 2010 82

SLIDE 83

Speeding

There is a Speed limit on the Farm

Speed is 25 Km/h Please observe this Dangerous to both Humans and Animals

AGM 2010 83

Dangerous to both Humans and Animals

2nd October 2010

SLIDE 84

Cleaning & Laundry Services

Cleaning

Offered as an added service

Deposit of R 500 to be paid to initiate service Accounts payable on presentation of an account Service terminated if outstanding account equals the Deposit

AGM 2010 84

Deposit

Note: No cleaning will be provided on the weekends

Requested proposals for outsourcing this function

None received

2nd October 2010

SLIDE 85

Security

An alarm system is available Request to install radios

Fire Assist

AGM 2010 85

Intruder alert

Currently response offered by the company at an added cost

For two years we have requested proposals as to how best to provide a response None yet received

2nd October 2010

SLIDE 86

Price list for added services (Effective 1 March 2011)

Service Unit Ex Vat Inc Vat

Cleaning - House Per clean R 78.95 R 90.00 Cleaning - Yard Per Clean R 78.95 R 90.00

AGM 2010 86

NOTE:

All these services are required to be paid in advance.
Deposits will be held against which costs are deducted – topped up

every three months via invoice from the Office

Should deposit be depleted the Services will be suspended

Alarm Reaction Per annum R 1,666.67 R 1,900.00 Laundry Per load R 78.95 R 90.00

2nd October 2010

SLIDE 87

“Snoepie” and Pub

“Snoepie” Trading Hours

Weekdays

16h00 to 17h00

Weekends and Public Holidays

11h00 to 12h00 16h00 to 17h00

AGM 2010 87

16h00 to 17h00

Pub

Trial period Mainly sports events Desire to upgrade “entertainment” to include

Pool Table Tennis Darts

2nd October 2010

SLIDE 88

Shareholder Responsibilities

Everything on your site is your own responsibility

Building material Contractors Repairs and maintenance

AGM 2010 88

Repairs and maintenance

Not an obligation of the Farm Manager

But will help wherever possible and practical and time permitting

Levies do NOT cover services offered as assistance to shareholders

2nd October 2010

SLIDE 89

Communication Issues

Continuous update of our website

Vote of thanks to John and Lorna Hill Updated regularly

Notification of meetings will be posted on the web site and correspondence will be done by

AGM 2010 89

web site and correspondence will be done by email

Do away with registered and standard post wherever possible All Correspondence by email – please keep us informed of email address changes Email addresses will not be distributed by the office but you may post your mail address on the website if you so wish

All statutory info is available on the web site

2nd October 2010

SLIDE 90

Important Legal Issues

Members shall at all times be required to use their firearms as provided for by the relevant legislation from time to time and shall not contravene any laws in so using their firearms Members shall not allow unlicensed persons to drive a vehicle on the property No un-roadworthy vehicles may be driven by anyone whatsoever on the property

AGM 2010 90

the property Neither the Company, nor its directors shall be liable for conduct on the part of members or their families or invitees which contravenes these rules and/or the law THIS STATEMENT IS CLEARLY DISPLAYED AT THE MAIN ENTRANCE AND AT THE SWIMMING POOL AREA It must be noted that anybody who commits a delict in his or her personal capacity is personably liable in respect of such delict and that the Company would in any event not be liable in such instance

2nd October 2010

SLIDE 91

Administrative Issues

Electricity

Electronic deposits to Hermanusdoorns, Confirmation to OFFICE Other deposits made by shareholder

AGM 2010 91

Other deposits made by shareholder Proof of payment submitted to OFFICE

ACCOUNTS SETTLED

Please settle all accounts ASAP so we can hand over to the office.

2nd October 2010

SLIDE 92

Administrative Issues

Telephone

Common courtesy to be given to Farm Manager Only flag “Urgent” if it really IS urgent Please try use email wherever possible

AGM 2010 92

Andre’s email is a.cochrane@mweb.co.za

Don’t send pictures

Farm Manager time management

On for 5 weeks – one week off Not available Sunday mornings

Use of private generators is NOT permitted

2nd October 2010

SLIDE 93

Administrative Issues

More than one dwelling is not permitted on

ne site.

No one may run a business from the farm that interferes with the with the privacy of

AGM 2010 93

that interferes with the with the privacy of shareholders or the operation of the farm and without board consent. Site responsibility – cleanliness – is the SHAREHOLDER’s responsibility

2nd October 2010

SLIDE 94

Other General

Waterbok Pan

Swimming Forbidden Playing is forbidden

Collection of Wood

AGM 2010 94

Collection of Wood

Do Not remove wood from the farm Buy it from the shop

Littering

Please stop Please stop and pick up litter

2nd October 2010

SLIDE 95

Other General

Entertainment Area and Pub

Only open on special occasions

Caravans

Caravans parked on the property must be

AGM 2010 95

Caravans parked on the property must be in an enclosed garage and may not be used to house persons on the farm.

Matters to be brought to Board directly and not through the AGM

2nd October 2010

SLIDE 96

Closure

Thank you for your attendance and input Please join us for a light meal directly after the meeting

AGM 2010 96

THANK YOU ONCE AGAIN

2nd October 2010