1. DC Housing Finance Symposium Linking Primary Mortgage Markets to Capital Markets - the Perspective of Practitioners by Simon Stockley 20 th April 2004

4. SA Home Loans Activities since launch: February 1999 as at April 2004 : Gauteng 30% : R12billion : R1.1billion (December 2002) Number of loans processed : 45 000 Value of loans processed : R15billion Breakdown by region Value of loans approved : KZN 35% : W Cape 35% Securitised Portfolio Thekwini Fund I : R1.25billion (December 2001) Thekwini Fund II Un-securitised : R6billion Thekwini Fund III : R2billion (December 2003)

8. Positioning

11. Control Public Special Purpose Vehicle Trust Loans To the Public Senior Securities Subordinated Securities Purchase Securities Independent Trustee External Auditor Origination & Management Fee : 0.5% JIBAR Rate Plus 2.1% 1.6% Yield pick up Securitisation Structure Institutional Investors

12. Investment Structure Public Loans JIBAR + 2.1% Thekweni I Special Purpose Vehicle R1.25 Billion A Class 92 % AAA Rating JIBAR + 70 Points B Class 8 % BBB Rating JIBAR + 230 Points C Class 2.5 % Unrated Pay away 1.6% to investors SAHL 0.5% Management Fee Standard Bank Deloitte & Touche Standby Administrator

13. Schematic Diagram of Structure SA Home Loans Redraw Facility Investors Bank Funding Hedge Counterparty Main Street 65 (Pty) Limited Home Loan Borrower The Thekwini Fund 2 Limited Indemnity and Mortgage first lien over the Home Loan Borrower’s property Monthly payments Loan Servicing Loan origination Servicing Reserve fund Transfer of mortgages Purchase of mortgages Wholesale loan Mortgage first lien Loan Hedging Repayment of the Wholesale loan Quarterly obligations Cash proceeds Notes issue Transfer of security Excess spread Guarantee Committed loan facility Guarantee Trust Security Trust Home Loan Borrower

14. SAHL Legal Structure Public Public Public Public Public SPV SPV SPV Senior MBS Junior MBS Senior MBS Junior MBS Senior MBS Junior MBS Short Term Insurer Life Insurer SAHL Interim Funder External Directors Auditors MARKET MAKER INVESTORS INVESTORS SECURITIES AND AGREEMENTS THE PUBLIC SA HOME LOANS SPECIAL PURPOSE VEHICLES MORTGAGE BACKED SECURITIES INSTITUTIONAL INVESTORS

17. Increasing Sophistication Improved Tranching Spread Compression Source: Standard Bank

18. Thekwini 3 Term Sheet

20. Thank you. Simon Stockley CEO - SA Home Loans (Pty) Ltd Phone : (031) 560 5392 Fax : (031) 562 4266 Cell no : 083 276 0068 e-mail : simons @ sahomeloans .com