1. UPDATED STRATEGIC PLAN FOR PERIOD 2012/13-2016/17 REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM

2. PRESENTATION OUTLINE REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM VISION MISSION VALUES LEGISLATIVE AND OTHER MANDATES SITUATIONAL ANALYSIS ALIGNMENT OF GOVERNMENT WIDE PRIORITIES ORGANISATIONAL ENVIRONMENT SWOT ANALYSIS LINK BEWTEEN, STRATEGIC OUTCOME AND KEY OUTPUTS FINANCIAL PLAN STRATEGIC RISK REGISTER

3. STRATEGIC OVERVIEW REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM VISION To be a leading World Class regulator that is responsive to and surpasses its stakeholder expectations. MISSION Ensure the integrity of the transaction between the estate agent and the consumer is of a high standard by regulating, protecting guiding and enhancing the conduct of real estate agents’ profession.

4. STRATEGIC OVERVIEW REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM VALUES Integrity Responsibility Respect Excellence Communication Participation Trust

5. RELEVANT LEGISLATURE APPLICABLE TO EAAB REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Legislative Mandates The South African Constitution; Act 108 of 1996; The Estate Agency Affairs Act, 112 of 1976; The Public Finance Management Act, 1 of 1999; The Preferential Procurement Framework Act of 2000; The Financial Intelligence Centre Act, 38 of 2001; The Labour Relations Act, 66 of 1995; The SA Qualifications Authority Act, 58 of 1995; and The Skills Development Act, 97 of 1998 The Promotion of Administrative Justice Act 3 of 2000 The Promotion of Access to Information Act 2 of 2000 The National Credit Act 34 of 2005 The Consumer Protection Act 68 of 2008

6. EAAB MANDATE REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Primary Mandate of EAAB Regulate, maintain and promote the standard of conduct of estate agents having due regard to the public interest; Issue fidelity fund certificates to qualifying applicants; Prescribe the standard of training of estate agents; Investigate complaints against estate agents and institute disciplinary proceedings against offending estate agents where required; and Manage and control the Estate Agents Fidelity Fund. Additionally to the primary mandate: The EAAB is the Supervisory Body of the estate agency profession pursuant to the Financial Intelligence Centre Act and is obliged to take all steps required to prevent; alternatively, identify and report on, anti-money laundering and terrorist financing activities Annual Milestone

7. UPDATED SITUATIONAL ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Performance Environment Economic factors that impact Estate Agency growth: Lower forecasted Economic growth Higher anticipated inflation rate and interest rates. Implementation of the National Credit Act Scarcity of new developments Stricter bank lending to property buyers 8 million consumer with impaired credit records

8. UPDATED SITUATIONAL ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Performance Environment - Continued Other factors that affect Estate Agents Industry: Estate Agents may take advantage in the growing inexperienced property consumers. This may lead to higher claims made against Fidelity Fund. Mismanagement of Trust fund has continued to be a challenge within the Industry. The growing use of technology has impacted the practices of Property practices.

9. ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Government- Wide PrioritiesEAAB Activities Speeding up growth and transforming the economy to create decent work and sustainable livelihoods Support of Property Sector Charter Council in the implementation of BBBEE Codes in the Property industry. Encouraging Estate Agencies to train and develop PDI. Massive programme to build economic and social infrastructure Encouraging involvement of Estate Agents in the implementation of low-cost and affordability housing programmes. Comprehensive rural development strategy linked to land and agrarian reform and food security Improving accessibility to the 9 provinces in respect of Estate Agency Affairs Board services and support.

10. ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Government- Wide PrioritiesEAAB Activities Strengthen the skills and human resource base Partnership created with Primary, Secondary and Tertiary levels of education in order expand the awareness and education of the Industry and the Profession. Creation of Estate Agency Learnership opportunities. Intensify the fight against crime and corruption Improve the effectiveness of the whistleblower process. Improve the legislation applicable to Estate Agents. Improve partnerships between EAAB and other regulating authorities.

11. ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Government- Wide PrioritiesEAAB Activities Pursuing African advancement and enhanced international cooperation Participation in International bodies activities which promote the regulation of Real Estates. i.e. ARRELO. Inviting and hosting African Regulators to conferences and one on one engagements. Sustainable resource management and use Compliance with the “green” concepts in EAAB operations. Building a developmental state, including improvement of public services and strengthening democratic institutions Efficiency and Effectiveness in the service delivery of the EAAB and Fidelity Fund.

12. ORGANISATIONAL ENVIRONMENT REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Executive Authority Board of Directors Risk and Strategy Internal Audit Chief Executive OfficerCompany Secretary Fidelity Fund Executive Compliance Executive Inspections Executive Registrations Executive Education & Training Executive Corporate services

13. SWOT ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Threat Opportunities Increase in emerging home owners and renters and consequent escalation in the number of complaints and claims impacting upon the Board’s resources and the Fund. Increase in white-collar crime would lead to higher claims from Fidelity Funds. More sectional title properties on the market and increased malfeasances by sectional title managers. Tight banking credit application may lead to a reduction in the number of sales transactions. The slow economic recovery may lead to a reduction in the number of estate agents. Build consumer understanding of the property transactions; Increase consumer awareness of the estate agency industry; Increase the number of estate agents especially from previously disadvantaged groups; Amend the Act to support the EAAB strategic intent; Better investment opportunities for investing the fidelity fund; Build partnerships that would improve the ability of EAAB to ensure compliance to the Act

14. SWOT ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Threats Opportunities An increase in a number of unregistered estate agents “no commission based companies” will erode the integrity of the property sells industry. Claims against the fidelity fund emanating from unregistered estate agents may increase. Unlimited amounts of claims either in size or number of claims may deplete the fidelity fund Loss of revenue as result of non compliance to banking money into trust account. Inefficiency of local authorities and deeds office has a negative impact on estate agent cash flow Improve communication between stakeholders and EAAB Establish Estate agents as members of a professional body Mitigating the sustainability of fidelity fund Use of FFC’s to enforce transformation and compliance Involving more stakeholders e.g. BEAFSA Improve performance of industry to regulation to go beyond mere compliance Improve the sustainability of previously disadvantaged estate agents

15. SWOT ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strengths Weaknesses Competent staff with experience is ready to take EAAB forward Implemented IT systems e.g. SAP to enable EAAB to improve performance A well managed Fidelity Fund Committed management team Improved working environment e.g. security Improved registration process Levels of systems integration could be improved to support service delivery Poor ratio of recoveries to claims Slow turn-around times for client service complaints Insufficient capacity to comply with mandate. Work redo is common

16. SWOT ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strengths Weaknesses Conducted stakeholder awareness campaigns Infrastructure is available to support the effective implementation of the EAAB mandate Insufficient reporting, monitoring and control structures Performance culture not fully implemented Performance management system ineffectively applied Need improvement of corporate governance Staff turnover erodes the experience curve

17. Linking Strategic outcomes to Performance Indicators REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strategic Outcome OutputPerformance Indicator Annual Milestone To improve compliance with the Estate Agency Affairs Act. Increased impact on prosecutions Number of complaints received, investigated and resolved. 12/13 -1028 13/14 – 1100 14/15 – 1200 15/16 – 1300 16/17 - 1400 Increased impact of inspections Number of Estate Agencies inspected 12/13 -1008 13/14 – 1210 14/15 – 1452 15/16 – 1742 16/17 - 2090

18. Linking Strategic outcomes to Performance Indicators REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strategic Outcome OutputPerformance Indicator Annual Milestone New Registrations Annual Milestone Renewals To improve compliance with the Estate Agency Affairs Act. Improved Registration process Number of new registrations and renewals processed 12/13 - 8206 13/14 - 9126 14/15 -10088 15/16 - 11042 16/17 - 12146 12/13 - 49238 13/14 – 54162 14/15 – 59578 15/16 – 65536 16/17 - 72090

19. Linking Strategic outcomes to Performance Indicators REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strategic Outcome OutputPerformance Indicator Annual Milestone To increase stakeholder awareness of the EAAB and its role and services Increased consumer awareness of EAAB and Estate Agents Industry Consumer awareness campaigns performed 12/13 -12 13/14 - 16 14/15 - 18 15/16 - 20 16/17 - 22 Improved Estate Agents awareness of EAAB and Estate Agents Industry Estate Agents awareness campaigns performed 12/13 -12 13/14 - 16 14/15 - 18 15/16 - 20 16/17 - 22

20. Linking Strategic outcomes to Performance Indicators REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strategic Outcome OutputPerformance Indicator Annual Milestone To effectively and efficiently manage EAAB Improved processing of Fidelity Fund certificates Number of on-line registrations processed 12/13 - 384 13/14 - 500 14/15 - 600 15/16 - 700 16/17 - 800 To effectively and efficiently manage the Fidelity Fund T improve the Growth of Fidelity Fund Percentage growth in the Fidelity Fund Growth at Consumer Price Index from 2012/13 to 2016/17 financial periods.

21. Linking Strategic outcomes to Performance Indicators REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strategic Outcome OutputPerformance Indicator Annual Milestone NQF Level 4 Annual Milestone NQF Level 5 To build capacity of key stakeholder Development of industry training with services SETA Number of NQF candidates enrolled and passed the Professional designation Exam 12/13 - 300 13/14 - 1000 14/15 - 1500 15/16 - 2000 16/17 - 3000 12/13 - 100 13/14 - 150 14/15 - 200 15/16 - 250 16/17 - 300

22. Linking Strategic outcomes to Performance Indicators REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Strategic Outcome OutputPerformance Indicator Annual Milestone To build capacity of key stakeholder To improve the standards of education and training service providers Number of service providers inspected for compliance to accreditation standards 12/13 -15 13/14 - 16 14/15 - 18 15/16 - 20 16/17 - 22 Improve education and training of existing qualified Estate Agents Number of candidates enrolled on CPD 12/13 -500 13/14 - 1500 14/15 - 3000 15/16 - 4000 16/17 - 6000

23. FINANCIAL PLAN REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM REVENUE AND EXPENDITURE ESTIMATES - EAAB 2012/13 R’000 2013/14 R’000 2014/15 R’000 2015/16 R’000 2016/17 R’000 Revenue Expenditure (Loss)/Surplus 89,449 75,564 13,885 86,049 85,044 1,005 93,633 90,951 2,682 100,187 97,534 2,653 107,200 104,361 2,839

24. FINANCIAL PLAN REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM REVENUE AND EXPENDITURE ESTIMATES – EAFF 2012/13 R’000 2013/14 R’000 2014/15 R’000 2015/16 R’000 2016/17 R’000 REVENUE 63,824 66,156 70,786 75,742 81,043 EXPENSES 62,245 66,107 70,736 75,688 80,986 SURPLUS/DEFICT 1,579 47 50 53 57

25. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR1 Ineffective communication of investigation results to the public. Inspection and investigation policy to be developed to inform and guide process for quality assurance of investigation results / reports prior to distribution to the public. HighEM: Enforcement

26. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR2 Budget constraints hampering achievement of Marketing targets. (i.e. Consumer education workshops). An effective budgeting and strategic planning process has been put in place. (i.e. Inclusion of Marketing budgetary requirements in budgeting process). ModerateCEO

27. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR3 Problematic historical relationship with the Services Seta. MOU entered between EAAB and SSETA in respect of appointment of EAAB as quality assurer. ModerateCEO GR4 Road shows and awareness materials do not reach target audience (i.e. consumer). Inapt partner used for consumer education programs. Monitoring of Actual implementation of planned initiatives as per approved Marketing Strategy. HighMarketing and Communications Manager

28. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR5 Non compliance with legislative requirements (The South African Constitution; Estate Agency Affairs Act; Public Finance Management Act; Preferential Procurement Framework Act; Financial Intelligence Centre Act; Labour Relations Act; SA Qualifications Authority Act; Skills Development Act). PFMA and Treasury compliance checklist in place. Develop compliance checklists for all applicable legislation for quarterly monitoring and reporting to Board. HighBoard Secretary

29. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR6 Lack of transformation within the industry. Transformation committee established. Effective functioning Transformation Committee. HighCEO/Board GR7 Non-evaluation of performance of Board and Committees. Evaluations process is currently being established HighBoard Secretary

30. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR8 Ineffective organisational structure to implement strategic plan and mandate. Inclusion of organisational structure review in the annual organisational business planning. ModerateCEO GR9 Slow resolution of queries received and escalated by the call centre. (i.e. queries not resolved within 5 days as per policy). Appointment of Customer Relations Manager and department to interface between internal query process and the customer. ModerateCustomer Relations Manager

31. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR10 Not meeting expectations of stakeholders. Inadequate awareness measures (e.g. Road shows; Newsletters; Magazine). Conduct a stakeholder survey to determine level and effectiveness of awareness measures in place and to highlight expectation gap. ModerateCEO GR11 Staff competence not adequately assessed. Implementation of Performance Management system ModerateCEO

32. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR12 Inadequate communication for reinforcing of mandate to Management and staff. Internal Communications Policy reviewed and approved by EXCO on an annual basis. Internal communication policy work shopped and communicated to EAAB staff. HighMarketing and Publications Manage

33. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR13 Fidelity Fund target growth not met. Implement a separate governance structure to monitor growth. HighBoard members

34. STRATEGIC RISK REGISTER REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Risk number Risk DescriptionEAAB Action Plan Residual Risk Rating Risk Owner GR14 Low interest of individuals to enter the industry due to uncertain nature of an estate agents income. Lack of government support and direction to increase incentives. An effective transformation committee to review and determine action plan to address support structures for estate agents sustainability. An effective transformation committee in place to ensure issues are addressed. HighCEO Transformation committee

35. REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM THANK YOU