Proposed Hydraform Head Office Building

HYDRAFORM INTERLOCKING SOLUTION

Powered By: Enviro-Lite Concrete (Pty) Ltd

Namibia 21/1990 Housing Project

Office Address Office Details

Banhof Street Landline: +264 62 522147

Block A ERF 253 Handset: + 264 852222273
P.O. Box: 1017 md.hydraform@iway.na
Rehoboth Hardap www.hydraformnamibia.com
Region Namibia

NAMIBIA
Presentation outline
1. Background
2. Investment Philosophy & Strategies
3. Governance
4. Business Partners
5. Modus Operandi
6. Namibia Housing Demand
7. Housing Target Market by gross salary
8. Target Market regional analysis
9. Housing Supply Solution
10. Construction Process
11. Pipeline Deals
12. Financial Data Sheet
13. Financial Performance : SOCI
14. Financial Performance : SOCF
15. Financial Performance : SOFP
16. Loan Required
17. Security
1. Background Information
Hydraform Interlocking Solutions is a low cost housing construction firm founded by Marius
!Kharigub in 2002. We are not just a mere company but one that is here to make life easier for our
communities in terms of decent living conditions through the provision of low cost and affordable
housing for all Namibians hence have extensively researched on various Alternative Building
Technologies first before settling for this one. Though new in Namibia, the technology is actually
more than 200 year old.
1. Technology was already Namibia tested during 2007 – 2014 with positive results
2. This concept has already secured relevant authorizations and certifications.
3. After pilot testing, we have reintroduce it again in all 14 regions for implementation.
4. Our targeted clients include;
• Civil servants,
• Local Authorities e.g. Regional Councils,
• Banks, and
• Pension Funds
5. Mission: Provision of quality low cost housing & support services to those with housing needs
2. INVESTMENT PHILOSOPHY & STRATEGIES
Philosophy
Hydraform has a long-term value oriented investment philosophy and specializes in providing
conservatively managed, risk-averse investment opportunities. We believe that successful
investing in alternative asset class over the long term is about identifying and buying assets in
inefficient markets. These inefficiencies can be the result of sub-optimal structuring, sub-
optimal capitalization, or a misunderstood, or out-of-favour asset class.

Strategies
Hydraform utilizes an investment process that is characterized by a top-down approach to
identifying attractive investment opportunities, beginning first with a macro-level economic
analysis of various geographic markets and properties, followed with the identification of
individual investment opportunities and the evaluation of their attributes. Once an investment
opportunity is determined based on an initial review, the Manager performs a comprehensive
due diligence of the underlying assets. This approach to portfolio selection is expected to yield
investments that are of high quality.
3. GOVERNANCE

Asset & Risks

Mitigation
Fund Manager

Managing
Director
6. Namibia Housing Demand
As of 2016, Namibia had 589,787 houses. Only 217,630 of these were modern houses out of which
48,130 were in the rural areas while 169,500 were in urban areas. Based on the UN World Cities in 2016
report & the 2016 Labour Force Survey data, Namibian cities are expected to house about 1,394,633
people. It therefore means we will need about 398,466 modern houses of 3.5 average size per
household. Local cities must therefore deliver a minimum of 228,966 modern houses by 2030 in order
to address this housing stock deficit.
According to FNB (2011), the housing backlog was estimated to be over 80,000 houses with the
largest backlog in the income segment that earns between N$ 0 and N$ 1,500 per month at 45,000
houses, while the backlog for those earning between N$ 1,501 to N$ 4,600 per month stood at 30,000
houses. As of March 2018, the housing backlog for the National Housing Enterprises alone had
ballooned to 98,000. Data collected from major towns puts total housing backlog at 150,000 which
can be viewed in relation to 155,000 households that stay in impoverished houses who require to be
housed in modern structures.
As lack of decent housing continues to be one of the most contentious issues in Namibia, housing
delivery was identified as a priority by Government which introduced the Mass Housing Initiative in
2013 aimed at delivering 187,000 houses by 2030 while HPP08 aims to deliver 20,000 houses & 26,
000 residential plots.
Hydraform is looking for an investment of US$300million to build 28,000 houses in Namibia by 2030.
 TARGET BENEFICIARIES

LOW INCOME GROUP 75%

UPPER MARKET 25%

7. Housing Target Market by gross salary
Monthly salary No of non- Monthly Indiv.cont @ Com.monthly Term (Yrs) Int.rate p.a Qualifying Qualifying Recom.hse
Grade
Min Max participant subsidy 30% Instalment 15 11.75% subsidy Loan Amnt type & cost
15 2,735 3,557 15,374 1,669 1,245.00 2,914 15 11.75% 220,000 246,100 2 Brm hse
14 4,181 5,436 3,680 1,669 1,443.00 3,112 15 11.75% 220,000 262,800
13 5,547 7,213 10,001 2,253 1,914.00 4,167 15 11.75% 297,000 351,900 $250,000
Sub tota l 29,055
12 7,617 9,136 18,309 2,918 2,513.00 5,431 15 11.75% 396,000 458,600 3 Brm hse
11 9,401 11,276 12,530 2,918 3,102.00 6,020 15 11.75% 396,000 508,400
$350,000
Sub tota l 30,839
10 11,276 13,524 7,829 3,648 3,720.00 7,368 15 11.75% 495,000 622,200
4 Brm hse
9 13,800 16,552 9,879 4,377 4,553.00 8,930 15 11.75% 594,000 754,100
8 16,883 20,177 15,379 4,957 5,559.00 10,516 15 11.75% 693,000 888,100 $550,000
7 20,580 24,595 2,058 5,665 6,776.00 12,441 15 11.75% 792,000 1,050,600
6 25,087 29,982 2,381 5,665 8,260.00 13,925 15 11.75% 792,000 1,176,000
5 30,581 36,561 2,007 5,665 10,071.00 15,736 15 11.75% 792,000 1,328,900
Sub tota l 39,533
According to the Office of the PM, there are about 115,274 civil servants eligible for housing scheme.
Currently only 14% i.e. 15,847 of the employees are participating in the scheme while the number of the
non-participants is at 99,427 (86%). According to the Office of the PM, there are about 115,274 civil
servants eligible for housing scheme. Currently only 14% i.e. 15,847 of the employees are participating in
the scheme while the number of the non-participants is at 99,427 (86%).
8. Target Market regional analysis

This initiative will focus solely on individuals that are earning a gross monthly salary of up
to N$20,000 and less and is mainly made up of the elementary workers who are currently
regarded as not being able to service a modern house bond.
9. Housing Supply Solution
H ouse t y pe by no. of be droom s 4 3 2 Av e ra ge

Unit cost 105 105 105 105

Land cost Erf size 500 500 500 500
Plot cost 52,500 52,500 52,500 52,500
Hse size 120 90 70 110
Improvements cost Construction rate 1,600 1,600 1,600 1,600
Building cost 192,000 144,000 112,000 181,000
Registration costs 25,000 20,000 17,500 23,900
Closing fee 1% 5,400 3,500 2,500 5,000
Cost of sales 275,000 220,000 185,000 262,400
Margin 275,000 130,000 65,000 247,600
Selling Price 550,000 350,000 250,000 510,000
1. Material costs had gone up by a cumulative 10% over the last ten years to 2016, while house prices have been rising at a rate of
about 11% per annum, from $91,000 in 1991 to $1,220,000 in 2017 i.e. 26 years down the line

2. 2018 Real Estate snapshots: Southern $831,000 (+5.4%), Northern $799,000 (+1.5%,) Coastal $1,082,000 (+4.9%) & Central
$1,528,000 (+8.7%)

3. 2016 FC housing building cost research findings established $4,000 per m2 as the standard construction rate

4. As of 2017, Local Government has been appointing contractors under PPP to erect structures at $4,300 per m2

5. Hydraform Interlocking’s construction rate for affordable houses is currently standing at $1,600 per m2.

6. Placing the cost of a 500m2 plot at $52,500, and using a construction rate of $1,600m2, a 4 bedroomed house measuring 120m2,
will cost $275,000 inclusive of registration costs. Selling the house it $550,000, 50% profit margin is posted at construction stage.
10. Construction process
11. Pipeline deals.

We are currently holding land offers to purchase 10 990 everns in Rehoboth,

Swakop, Okahandja, Walvisbay,Otavi,Gobabis,Epikiro
12. Financial Data Sheet
No of houses to be build Year 5 Year 4 Year 3 Year 2 Year 1
4 Bedroomed house 200 200 200 400 1,395
3 Bedroomed house 30 30 30 60 180
2 Bedroomed house 10 10 10 20 90
Total 240 240 240 480 1,665

Selling Price Annual increase rate 5.00%

4 Bedroomed house 669,000 637,000 607,000 578,000 550,000
3 Bedroomed house 425,000 405,000 386,000 368,000 350,000
2 Bedroomed house 305,000 290,000 276,000 263,000 250,000

Construction Cost Annual increase rate 5.00%

4 Bedroomed house 334,000 318,000 303,000 289,000 275,000
3 Bedroomed house 268,000 255,000 243,000 231,000 220,000
2 Bedroomed house 225,000 214,000 204,000 194,000 185,000

House Sales 149,600,000 142,450,000 135,740,000 258,540,000 852,750,000

4 Bedroomed house 133,800,000 127,400,000 121,400,000 231,200,000 767,250,000
3 Bedroomed house 12,750,000 12,150,000 11,580,000 22,080,000 63,000,000
2 Bedroomed house 3,050,000 2,900,000 2,760,000 5,260,000 22,500,000

House COS 77,090,000 73,390,000 69,930,000 133,340,000 439,875,000

4 Bedroomed house 66,800,000 63,600,000 60,600,000 115,600,000 383,625,000
3 Bedroomed house 8,040,000 7,650,000 7,290,000 13,860,000 39,600,000
2 Bedroomed house 2,250,000 2,140,000 2,040,000 3,880,000 16,650,000
O t h e r M ort ga ge S e rv i c e I n c om e
Closing fee 10% 1,800,000 1,600,000 1,500,000 2,700,000 -
No of loans 240 240 240 480 1,665
Rate 7,330 6,660 6,050 5,500 5,000

Assessment fees 580,000 510,000 440,000 800,000 2,497,500

No of loans 720 720 720 1,440 4,995
Rate 800 700 600 550 500

Valuation fees 2,109,000 1,597,000 1,162,000 1,056,000 833,000

Annual revaluations 1,406,000 958,000 581,000 - -
Initial assessments 703,000 639,000 581,000 1,056,000 833,000
1,161,600
Service fees 10% 1,797,600 1,294,800 849,600 290,400 -
No of loans 1,180 940 700 440 -
Rate 140.00 130.00 120.00 110.00 100.00

• Year 1 houses sold to other banks but from year 2 onwards administered by Yafamba at 11.75% over 15 years
13. Financial performance: SOCI
St at emen t o f Co mp reh en s i v e In co me [ SOCI]
Y ears
F o r t h e p eri o d en d ed
To t al 5 4 3 2 1

Tu rn o v er 1,712,425,000 218,139,000 195,482,000 173,441,000 272,613,000 852,750,000

Co s t o f Sal es (862,555,000) (91,680,000) (87,750,000) (84,060,000) (147,490,000) (451,575,000)
Gro s s P ro f i t 849,870,000 126,459,000 107,732,000 89,381,000 125,123,000 401,175,000
Ot h er In co me 274,862,900 40,946,600 59,871,800 76,911,600 57,286,400 39,846,500
1 , 1 24 , 732, 900 1 67, 4 05, 600 1 67, 603, 800 1 66, 292, 600 1 82, 4 09, 4 00 4 4 1 , 021 , 500

Op erat i n g co s t s (113,924,300) (27,401,000) (24,464,000) (21,847,000) (19,520,000) (20,692,300)

Op erat i n g P ro f i t on ordinary activities before 1 , 01 0, 808, 600 1 4 0, 004 , 600 1 4 3, 1 39, 800 1 4 4 , 4 4 5, 600 1 62, 889, 4 00 4 20, 329, 200
taking into account the following;
(42,116,800) (8,893,400) (8,714,600) (8,601,200) (8,476,000) (7,431,600)
A cco u n t i n g & s ecret ari al f ees 3,970,800 1,097,800 919,000 769,600 644,400 540,000
Dep reci at i o n 38,146,000 7,795,600 7,795,600 7,831,600 7,831,600 6,891,600

Earn i n g s B ef o re In t eres t & Tax 968, 691 , 800 1 31 , 1 1 1 , 200 1 34 , 4 25, 200 1 35, 84 4 , 4 00 1 54 , 4 1 3, 4 00 4 1 2, 897, 600

F i n an ce ch arg es (164,669,302) (8,315,257) (22,697,007) (35,780,276) (47,682,297) (50,194,466)

Earn i n g s B ef o re Tax 804 , 022, 4 98 1 22, 795, 94 3 1 1 1 , 728, 1 93 1 00, 064 , 1 24 1 06, 731 , 1 03 362, 703, 1 34
Tax (160,804,500) (24,559,189) (22,345,639) (20,012,825) (21,346,221) (72,540,627)

R et ai n ed Earn i n g s cu rren t 64 3, 21 7, 998 98, 236, 755 89, 382, 554 80, 051 , 300 85, 384 , 883 290, 1 62, 507
B al an ce b / f 0 544,981,244 455,598,690 375,547,390 290,162,507 0
B al an ce c/ f 64 3, 21 7, 998 64 3, 21 7, 998 54 4 , 981 , 24 4 4 55, 598, 690 375, 54 7, 390 290, 1 62, 507
14. Financial performance: SOCF
Statemen t of Cash F l ow [ SOCF ]
Yea r
F or th e peri od en ded
Total 5 4 3 2 1

CA SH F L OW F ROM OP ERA TIN G A CTIVITIES

Cash receipts from customers 1,986,810,000 258,976,700 255,249,940 250,230,020 335,441,840 886,911,500
Cash paid to suppliers & employees (1,152,603,600) (188,530,500) (166,007,900) (144,245,300) (181,616,600) (472,203,300)
Cash [utilized]/generated from operations 834 , 206, 4 00 70, 4 4 6, 200 89, 24 2, 04 0 1 05, 984 , 720 1 53, 825, 24 0 4 1 4 , 708, 200
Taxation (136,245,311) (22,345,639) (20,012,825) (21,346,221) (72,540,627) -
Net cash [outflow]/inflow from operating activities 697, 961 , 089 4 8, 1 00, 561 69, 229, 21 5 84 , 638, 4 99 81 , 284 , 61 3 4 1 4 , 708, 200

CA SH F L OW F ROM IN VESTIN G A CTIVITIES

Additions to property, plant & equipment (42,804,000) (3,000,000) (2,100,000) - (2,100,000) (35,604,000)
Mortgage collections 1,057,797,000 85,503,000 64,185,000 43,479,000 201,380,000 663,250,000
Mortgages Originated & Registered (1,539,080,000) (149,600,000) (142,450,000) (135,740,000) (258,540,000) (852,750,000)
N et cash [ ou tf l ow] / i n f l ow f rom i n v esti n g acti v i ti es ( 524 , 087, 000) ( 67, 097, 000) ( 80, 365, 000) ( 92, 261 , 000) ( 59, 260, 000) ( 225, 1 04 , 000)

CA SH F L OW F ROM F IN A N CIN G A CTIVITIES

Capital injections 204,000 - - - - 204,000
Loan repayments (670,419,302) (167,604,826) (167,604,826) (167,604,826) (167,604,826) -
Term Loan proceeds 505,750,000 - - - - 505,750,000
Net cash [outflow]/inflow from financing activities ( 1 64 , 4 65, 302) ( 1 67, 604 , 826) ( 1 67, 604 , 826) ( 1 67, 604 , 826) ( 1 67, 604 , 826) 505, 954 , 000

N et i n crease / [ decrease] i n cash & cash equ i v al en ts 9, 4 08, 787 ( 1 86, 601 , 264 ) ( 1 78, 74 0, 61 0) ( 1 75, 227, 326) ( 1 4 5, 580, 21 2) 695, 558, 200
Cash & cash equivalents at beginning of the period - 196,010,051 374,750,661 549,977,988 695,558,200 -
Cash & cash equ i v al en ts at en d of th e peri od 9, 4 08, 787 9, 4 08, 787 1 96, 01 0, 051 374 , 750, 661 54 9, 977, 988 695, 558, 200
15. Financial performance: SOFP
S t a t e m e n t of F i n a n c i a l P osi t i on [ S O F P ]
Y e a rs
As a t e n d of pe ri od
5 4 3 2 1

E Q U I T Y & L I ABI L I T I E S
S h a re h ol de r' s F u n d 64 3, 4 21 , 998 54 5, 1 85, 24 4 4 55, 802, 690 37 5, 7 51 , 390 290, 366, 507
Share Capital 204,000 204,000 204,000 204,000 204,000
Retained Earnings 643,217,998 544,981,244 455,598,690 375,547,390 290,162,507

Non - c u rre n t L i a bi l i t i e s 0 0 1 59, 289, 569 304 , 1 97 , 387 4 36, 021 , 937

Long-Term Loan 0 0 159,289,569 304,197,387 436,021,937

C u rre n t L i a bi l i t i e s 25, 7 50, 689 1 82, 639, 4 07 1 65, 7 67 , 7 4 3 1 53, 885, 57 1 1 93, 067 , 1 56
Accruals 1,097,800 919,000 769,600 644,400 540,000
Current tax 24,559,189 22,345,639 20,012,825 21,346,221 72,540,627
Short-term portion of long term debts - 159,289,569 144,907,818 131,824,550 119,922,529
Trade payables 93,700 85,200 77,500 70,400 64,000

T O T AL E Q U I T Y & L I ABI L I T I E S 669, 1 7 2, 687 7 27 , 824 , 651 7 80, 860, 001 833, 834 , 34 8 91 9, 4 55, 600

AS S E T S
Non - C u rre n t Asse t s
P rope rt y , P l a n t & E qu i pm e n t 4 , 658, 000 9, 4 53, 600 1 5, 1 4 9, 200 22, 980, 800 28, 7 1 2, 4 00
Machinery 3,000,000 6,600,000 13,200,000 19,800,000 26,400,000
Motor Vehicles 240,000 720,000 1,200,000 1,680,000 2,160,000
Furniture & Fittings 18,000 21,600 25,200 28,800 32,400
Office Equipment - 12,000 24,000 36,000 48,000
Computers & Printers 1,400,000 2,100,000 700,000 1,436,000 72,000

L on g- t e rm re c e i v a bl e s 629,622,000 505,028,000 379,542,000 254,955,000 189,500,000

Mortgage-Backed Home Loans 629,622,000 505,028,000 379,542,000 254,955,000 189,500,000

C u rre n t Asse t s 34 , 892, 687 21 3, 34 3, 051 386, 1 68, 801 555, 898, 54 8 7 01 , 24 3, 200
Trade receivables 477,900 369,000 265,140 142,560 5,685,000
Short term portion of term receivables 25,006,000 16,964,000 11,153,000 5,778,000 -
Cash and cash equivalents 9,408,787 196,010,051 374,750,661 549,977,988 695,558,200

T O T AL AS S E T S 669, 1 7 2, 687 7 27 , 824 , 651 7 80, 860, 001 833, 834 , 34 8 91 9, 4 55, 600
16. Loan (Investment) Required
1. Committed Capital Required $4.2 Billion (US$300mil)
2. Output target by 2030 28,000 houses
3. Combined Loan Term 10 Years

4. First Drawdown $ 505,750,000

5. Cost of capital at 9.5% (11.5%-2%) $ 164,669,302
6. Total Loan Repayment $ 670,419,302
7. Initial no. of houses 1,665
8. Extra houses (refinanced) 1,200
9. Total financed over term 2,865
10. Grace period 12 months
11. Term 5 years
12. Currency denomination Namibia Dollars
17. Security

Depends on underlying investments exposure

1. Equity/Venture Capital Investment :Shareholding stake

2. Housing loans :Housing mortgages

3. Construction projects :Cession registrations

over funded projects

1. Credit risk :Deduction code

2. Insufficient value /(LTV) :Government guarantee

HYDRAFORM PRODUCT AVARAGE PRICE?

• 2 Bedroom House – Price Range N$ 270 000.00

• 3 Bedroom House – Price Range N$ 380 000.00
• 4 Bedroom House – Price Range N$ 550 000.00
PROJECTED INCOME IF SALE BY CASH ON
HAND

 10000 3 BEDROOM HOUSES 3,800,000,000.00

 10000 4 BEDROOM HOUSES 5,500,000,000.00
 8000 2 BEDROOM HOUSES 2,160,000,000.00

 TOTAL CASH 11,460,000,000.00

 CREDIT LINE SALES TERM 20 YEARS

 10000 3 BEDROOM HOUSE N$ 4,871,661,600.00

 10000 4 BEDROOM HOUSE N$ 7,655,468,300.00

 8000 2 BEDROOM HOUSE N$ 2,783,806,640.00

 TOTAL N$15,310,936,540.00
 COMBO DEAL PACKAGE CREDIT LINE

 10000 - 3 BEDROOM HOUSE N$ 15,360,000,000.00

 10000- 4 BEDROOM HOUSE N$ 21,888,000,000.00
 TOTAL N$ 37,248,000,000.00
 EXPENSES:
 CONSTRUCTION N$ 5,000,000,000.00
 VEHICLES N$ 9,000,000,000.00
 FURNITURE N$ 2,000,000,000.00
 TOTAL N$ 16,000,000,000.00
Additional Revenue Projects

 Registrationof clients on the housing scheme

 Housing competition
 Hydraform Insurance packages
 Hydraform Brick Production sales
 And Upper Market Housing
Projected income Revenue of Additional Projects
Descriptions Monthly income Total income annually

Housing competition 3,850,000.00 30,800,000.00

Client registrations 1,016,666.66 12,200,000.00

Insurance package 9,100,000.00 109,200,000.00

Brick production sales 905,666,66 10,868,000.00

Grand Total 14,872,333.32 163,068,000.00

 THE END

I THANK YOU FOR LISTENING

SO LETS
TYPES OF PROPERTY: 2 BEDROOM
2
TYPES OF PROPERTY:3 BEDROOM
TYPES OF PROPERTY : 4 BEDROOM
4
HOUSING LOAN APPLICATION FORM
MARKETING

 RADIO ADVERTISING
 TELEVISION ADVERTISING
 ROAD SHOWS
 SMS COMPETIONS HOUSE GIVE AWAY
 PRINT MEDIA AND ADVERTISING
 TARGET LIVE EVENTS ON FACEBOOK

 TAKE PROSPECTS OUT OF TOWN

 VIDEO FOOTAGE OF THE HOUSES
 REFFERAL INCENTIVE PROGRAM
 MARKET YOUR COMBO DEALS FOR YOUR CREDIT LINE
ADVERTISING
HYDRA COMBO SALES 3 BEDROOM HOUSE

HOUSE CARS INSURANCE

FURNITURE
LIFECOVER,CAR,HOUSE
100 000

CAR
LIFE

HOUSE

INSTALLEMENT MONTHLY N$ 6377.87

HYDRA COMBO SALES 4 BEDROOM HOUSE

HOUSE CAR FURNITURE INSURANCE

LIFE CAR

HOUSE

INSTALLEMENT MONTHLY N$ 9150.86

REAL ESTATE INFOGRAPHIC LAYOUT

HYDRAFORM
Check of
the Hydra
web and make
your choice

Lets
Register
yourself make a
deal

SWAKOPMUND
 TIMELINE 2021

TASK JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

INVESTOR TALKS

MET INVESTORS

SIGN DEAL

LAND AQUISISION

MATERIAL AND
EQUIPMENT

BRICK
PRODUCTION

MARKETING

CONSTRUCTION
 Conclusion “Keeping Hope alive”

 The bad news: Our Small Towns are growing Day by Day
and housing became a big problem in your communities
in Namibia.
 The good news: We can do something about it, because
we have the Humanitarian Fund(HF) and new technology
and together we can fight this war and believe me we
will win it.
 We thanking you in anticipation for taking time to show
interest in our development plan and we hope that the
Humanitarian Fund(HF) considering it in a positive sense.
Way forward
 We hope that our presentation have big hope for
Humanitarian Fund (HF) to build houses for the Namibian
rainbow nation in the good spirit and we believe what this
new venture will assists the affordable houses need in
Namibia.
 Big rivers are made of small streams: Your support in
Namibia 21/99 project will feeds into the bigger picture of
Namibian history.
 And we believe that we will establish good working
relationship in order for us to get the road map to help your
communities in our beautiful Country.