1. Mr. Mziwonke Dlabantu
Chief Executive Officer
National Home Builders Registration Council
17 April 2018
Special Executive Management Team Meeting

2. Table of Contents Mandate of NHBRC Strategic Objectives
Products and Services
Programmes for the period
4.1 Administration
4.2 Regulation and Protection
4.3 Legal, Compliance and Enforcement
4.4 Research and Development
4.5 Warranty Fund
Budgeted Income Statement and Balance Sheet

3. Mandate of NHBRC VISION To be champion of the housing consumer MISSION
To protect the housing consumers and to regulate the homebuilding environment
MOTTO
Assuring Quality homes
STRATEGY
To ensure that housing consumers and homebuilders are educated on their rights and obligations
To entrench a culture of compliance through fair and efficient enforcement mechanisms
To research and introduce innovative products, methods and technologies within the homebuilding industry
To maintain a sustainable warranty fund.

4. Strategic Objectives
To improve cost effectiveness and internal efficiencies of operations
To ensure effective regulatory compliance
To entrench a culture of compliance and ensure efficient enforcement mechanisms
To research and introduce innovative products, methods and technologies within the home building industry
To maintain a sustainable warranty fund

5. Products and Services Registrations Renewal of registrations
Enrolment of Homes in the Subsidy sector
Enrolment of Homes in the non-subsidy sector
Late Enrolment of Homes
Inspections of Subsidy Homes
Inspections of Non-Subsidy Homes
Training of home builder, women, youths, military veterans, artisans, inspectors and people with disabilities.
Geotechnical investigations assessment
Resolution of complaints
Conciliations between a housing consumer and homebuilder
Legal advisory and enforcement of norms and standards

6. Socio-political imperatives
National Department of Human Settlements has planned to deliver 1.5 million housing opportunities in the Medium Term Strategic Framework period.
Delivery is through Outcome 8 which focuses on Sustainable Human Settlements and improved quality of life.
National Development Plan estimates that almost 4 million subsidy units were build for the indigent in the MTSF period.
NHBRC has recognised the fact that in order to deliver on its mandate it must strengthen its working relationships with municipalities, provincial human settlements departments and all related stakeholders.
Growth in the Subsidy sector has been subdued due to budgetary constraints in Government due to declining revenue collections and introduction of other priorities like funding higher education.

7. Financial perspectives
Medium term budget policy statement(MTBPS) indicates that Gross Domestic Product(GDP) has been revised down from 1,7% to 0.9%.
Weaker outlook is based on lower commodity prices, higher borrowing costs, diminished business and consumer confidence and drought experienced in South Africa.
Household finances remains under pressure which impacts on affordability for new housing in the Country.
Number of new building plans which are approved by the municipalities has dropped by 0.3% by year on year projections.

8. Financial perspectives
Revenue for 2018/2019 has been adjusted downward compared to projections in the previous financial year due to downward revisions in planning assumptions.
The global economic crises has resulted in contraction of South African economy and as a result NHBRC has adopted measures to ensure fiscal prudence.
Warranty Fund which is valued annually on a run-off basis is solvent and in sound financial position.

9. Financial perspectives
Future demands and supply of homes will be driven by developments in the economy, but by trends with respect to the following:
Growth in real GDP which affects levels of employment
Average CPI affecting disposable income
Interest rate stability going forward
Effects of actual and potential downgrades on sovereign credit rating
Household debt management
Affordability of property and accessibility of mortgage finance for households.

10. Top 10 Priorities of Council
Council has formulated the following Top 10 priorities which guide the stabilisation plan:
Improve the Visibility and Accessibility and of the NHBRC to housing consumer
Leverage the NHBRC’s research and development capabilities to become Leader in Knowledge Creation within the home building industry;
Expand the NHBRC’s Products and Services set available to housing consumers;
Conduct the Legislative Review to improve housing consumer protection in the current operating environment;
Review the Operating Model of the NHBRC to become more responsive to housing consumer’s and stakeholder needs, while improving operating efficiencies;
Stabilisation Priority
In Progress
In Progress
In Progress
Stabilisation Priority

11. Top 10 Priorities of Council (continued)
Finalise and stabilise the SAP implementation to support the delivery of the organisations mandate in an efficient manner;
Review the Investment Strategy of the NHBRC to leverage some of its investment assets to support housing developments in South Africa, in a manner that address the organisations and investment objectives and risk appetite;
Promote and embed good governance within the NHBRC as is evidenced by a Clean Audit Opinion issued by the Auditor General
Develop and implement a Social transformation strategy that drives socio economic transformation in South Africa
Improve the Strategic Capacitation of the NHBRC to improve its sustainability, efficacy and efficiency of the organisation into the future.
Stabilisation Priority
Done
Stabilisation Priority
Done
In Progress

12. APP PROGRAMMES AND DIVISIONS/SECTIONS
Programme Name
Division
Section
Programme 1
Administration and Governance
CEO
Internal Audit
Strategy and Performance Information Management
Corporate Communication and Marketing
Risk Management
Social Transformation & Empowerment Programme
Corporate Services
Human Capital
Business Management Services
Programme 2
Regulation and Protection
Business Services
Customer Services
Technical and Inspectorate
Programme Management Office
Programme 3
Legal, Compliance and Enforcement
Legal
Compliance
Enforcement
Programme 4
Research and Development
Centre for Research and Housing Innovation
Research
Education Training and Development
Material Testing Laboratory
Programme 5
Warranty Fund
Finance
Supply Chain Management

13. PERFORMANCE INFORMATION 2018/2019
Programme 1: Administration and Governance
Strategic Objective #
Key Performance Indicators
Strategic Corporate Plan targets
Targets 2018/2019
To improve cost effectivenes s and internal efficiencies of operations 1
% uptime for Business critical ICT systems (SAP, network and exchange ( ))
95% uptime for Business critical ICT systems
Achieve 99% uptime of ICT infrastructure(SAP, network and exchange( )) 2
% stabilization and enhancement of the core business system (SAP)
100 % stabilization and enhancement of the core business system (SAP)
100 % stabilization and enhancement of the core business system (SAP) 3
% Implementation of human resource strategy in line with the implementation plan
100% execution of Human resource re-engineering Strategy in line with the implementation plan
100% execution of Human capital Strategy in line with the implementation plan 4
Number of days it takes to recruit employees -
Employees recruited within 90 days 5
% achievement of Clean Audit
100% achievement of clean audit 6
Number of housing consumer stakeholder sessions held at provinces
9 housing consumer stakeholder sessions held at provinces 7
Number of homebuilder stakeholder sessions held at provinces
9 homebuilder stakeholder sessions held at provinces 8
% implementation of Social transformation strategy
100% implementation of social transformation strategy

14. To ensure an effective regulatory compliance
PERFORMANCE INFORMATION 2018/2019
Programme 2:  Regulation and Protection
Strategic Objective #
Key Performance Indicators
Strategic Corporate Plan targets
Targets 2018/2019
To ensure an effective regulatory compliance  1
Number of  homebuilders to be registered
20,051 homebuilders to be registered.
3,518 homebuilders to be registered.  2
Number of homebuilders to renew their registration
69,590 homebuilders to renew their registrations
12,919 to renew their registration 3
Number of homes to be inspected in the Subsidy Sector
1,909,017 homes to be inspected in the Subsidy Sector
112,179 homes to be inspected in subsidy sector 4
Number of homes to be inspected in the Non-subsidy sector
1,182,777 homes to be inspected in the Non-subsidy sector
50,485 of homes to be inspected in the non-subsidy sector 5
Number of  Home Enrolment in the  Subsidy sector
362,613 home enrolment of homes
A total of 112,179 units for home enrolment 6
Number of Home Enrolments Non-subsidy
269,152 non-subsidy enrolment of homes.
50,485 non-subsidy enrolment of homes. 7
% of late enrolment of homes in the subsidy sector issued with administrative non-compliance -
100% of late enrolment of homes in the subsidy sector issued with administrative non-compliance 8
% development of the Home Builder Card System
100% Home Builder Card Systems (Phase 1) Completed as per the project Plan

15. PERFORMANCE INFORMATION 2018/2019
Programme 3: Legal, Compliance and Enforcement z
Strategic Objective #
Key Performance Indicators
Strategic Corporate Plan targets
Targets 2018/2019
To entrench a culture of compliance and ensure effective regulatory compliance  1
% of home builder notice of non-Compliance reviewed for decision making. -
100% of home builder notice of non-Compliance reviewed for decision making. 2
% of defaulting homebuilders suspended on prosecutable matters
80% of home builders suspended on prosecutable matters 3
% of prosecutable matters set down for hearing before the before Disciplinary Committee (“DC”)
100% of prosecutable matters set down for hearing before the DC 4
% of instructions issued to Attorneys to apply for an interdict where there are prospects of success
100% instructions issued to Attorneys to apply for an interdict where there are prospects of success

16. PERFORMANCE INFORMATION 2018/2019
Programme 4: Research and Development
Strategic Objective #
Key Performance Indicators
Strategic Corporate Plan targets
Targets 2018/2019
Promote research and innovation in housing through technical, transformat ional and intellectual leadership.  1
Number of Home Builders trained & developed in home construction & related fields
9,829 homebuilders to be trained and developed in home construction and related fields. 
Train & develop 2,000 Home Builders 2
Number of Youth trained & developed in home construction & related fields
9,181 youths, women, military veterans and people with disabilities.
Train & develop 2,000 Youth 3
Number of Women trained & developed in home construction & related fields
Train & develop 1,800  Women 4
Number of Artisans trained & developed in home construction & related fields
1,500 artisans to be trained and developed in home construction and related fields.
Train & develop 400 Artisans 5
Number of People with Disabilities trained & developed in home construction & related fields
Train & develop 300  people with disabilities 6
Number of learners registered in the Learnerships program -
400 learnership registered in learnership programme 7
Number of Military Veterans trained & developed in home construction & related fields
Train & develop 450 military veterans 8
Number of Technical Professionals trained & developed in home construction & related fields
1,800 home inspectors to be trained and developed in home construction and related fields.
Train & develop 500 technical professionals 9
Number of IBT houses build.
100% execution of Innovative Building Technology products/service
Implementation of 9 Innovative Building Technology- based-houses. 10
Number of research outcomes recommended for implementation
Number of research outcome recommended   for implementation.    
Implementation of  8 (eight) Research   products/services on Innovative Products & Service

17. PERFORMANCE INFORMATION 2018/2019
Programme 4: Quarterly Breakdown #
Key Performance indicators
Quarterly targets
1st
2nd
3rd
4th 7
Number of Military Veterans trained & developed in home construction & related fields
Train 110 military vets
Train 110 military vets
Train 120 military vets 8
Number of Technical Professionals trained & developed in home construction & related fields
Train 100 technical professional 
Train 100 technical professional 
Train 200  technical professional  9
Number of IBT houses build.
3 Innovative Building Technology  based houses built as per project  plan
3 innovative Building Technology  based houses built as per project  plan
2 Innovative Building Technology  based houses built as per project  plan
1 Innovative Building Technology  based houses built as per project  plan 10
Number of research outcomes recommended for implementation
Implementation of  2 Research   products/services on Innovative Products & Service

18. Grows and sustain the warranty fund
PERFORMANCE INFORMATION 2018/2019
Programme 5:  Warranty Fund
Strategic Objective #
Key Performance Indicators
Strategic Corporate Plan targets
Targets 2018/2019
Grows and sustain the warranty fund  1
Asset cover ratio (>200%)
Operating profit > Budget 2
BEE spend
BEE Spend (51%) 3
Number of days within which suppliers are paid
Suppliers paid within 30 days

19. Budget presentation for the years ending 2018/19 to 2021/22
4/17/2019

20. A successful budget needs to ensure…1
Strategic alignment
Enable the organisations mandate
Address Council priorities
Support Shareholder priorities 2
Service delivery
Valuable final products
Deliver services to our citizens 3
Financial sustainability
Navigate economic conditions
Ensure financial sustainability
Build financial strength

21. Top 10 priorities of Council are adequately funded
R22m
Top Ten Priorities of the NHBRC
Visibility & Accessibility
Leader in knowledge creation
Products and Services
Outsource Inspectors
Review of the Operating Model
Review of the Legislation
SAP Change request
Investment Strategy
A Clean Audit
Social Transformation Strategy
Strategic capacitation of the NHBRC
R8m
R1,5m
R2m
R10m WEP
R20m
R5,5m
R1m
R0,5m
R6m
R0,5m
4/17/2019

22. B. INCOME STATEMENT
4/17/2019

23. Commentary
Revenue decreases by 6.5% in 2018/19 to R838 million largely due to a decreases in non-subsidy home enrolments.
Cash operating expenses grow by 4% in 2018/19 compared to the 2017/18 largely due to inflation adjustment to permanent staff, increase in ICT costs (unified Comms contract with Telkom) as well as an additional budget provided for outsourced inspectorate.
Operating profit decreases by 4.8% in 2018/19 compared to the forecast for 2017/18 largely due to the above as a well lower operating profit base in 2016/17

24. Commentary
Net investment income grows at average of 6%, which is largely based on money market rates.
Net profit is budgeted to reduce to R423 million in 2018/19.
Actuarial provisions of R34 million has been budgeted for with growth at 5% per annum

25. Balance Sheet Commentary
Financial strength as represented by total assets grows from R6,5bn to R6,9 bn in 2019.
4/17/2019

26. Thank you