Trading Statement for the year ending 28 February 2018 Balwin Properties Limited (Incorporated in the Republic of South Africa) Registration number 2003/028851/06 Share code: BWN ISIN: ZAE000209532 (“Balwin” or “the group”) TRADING STATEMENT FOR THE YEAR ENDING 28 FEBRUARY 2018 Balwin continued to deliver a positive trading performance for the year ending 28 February 2018 (“the period”), despite the current adverse market conditions created by the challenging macro-economic environment. Balwin continues to experience sustained demand for its good quality, affordable apartments and has made pleasing progress across existing and new developments. As previously advised to shareholders at the time of the release of the group’s interim results to 31 August 2017, Balwin has experienced delays in obtaining town planning and local authority approvals for the commencement of construction of certain new developments around the country. The delays have had an impact on the development of The Whisken (Kyalami), The Blyde (Pretoria East), Ballito Hills (KwaZulu-Natal), The Jade (Somerset West) and Green Park (Boksburg). Management, together with its team of professionals, have continued to engage with the local authorities to expedite the approval processes. Four of these developments have now been approved to commence construction and the remaining approval is imminent. These delays have affected a total of 696 apartments. Had these apartments been completed, we would have achieved a slight increase in our results from the prior year. In accordance with the revenue recognition accounting policy, the sales of these apartments will enhance the results of the 2019 financial year. A total of approximately 2 080 apartments are expected to be handed over for the 2018 financial year compared to 2 711 in the previous financial year. Average selling prices of apartments have not increased compared to the previous year owing to the challenging economic conditions and pressure on Balwin’s middle income target market customers Owing to the factors outlined above, revenue for the reporting period will be lower than the previous year and the group’s earnings for the period are expected to be as follows: Year ended Year ending 28 February 28 February 2018 2017 Expected range Reported Earnings per share 140.64c 28.19% - 23.21% lower 101.00c – 108.00c Headline earnings per 140.58c 28.15% - 23.18% lower 101.00c – 108.00c share The forecast financial information on which this trading statement is based has not been reviewed or reported on by the group’s independent external auditors. Shareholders are advised that the financial results for the year ending 28 February 2018 are expected to be released on SENS on or about 14 May 2018. Bedfordview 28 February 2018 Sponsor Investec Bank Limited Date: 28/02/2018 10:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.