Kyalami Surface Business Plan — Appendices

Supporting schedules, detailed assumptions and the glossary of terms used throughout the plan.

Section 31 of 31

Appendices

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Appendix A — Monthly projections, FY28

The first twelve months of the monthly engine from which all annual figures in this document are aggregated.

Table 44. Monthly projections FY28 (R000 unless stated)

R000

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Revenue

0

0

229

236

258

324

408

508

653

669

553

788

Gross profit

(83)

(84)

75

76

86

125

177

239

334

335

242

400

Operating cost

496

498

519

521

525

533

542

553

567

571

564

586

EBITDA

(579)

(582)

(443)

(445)

(439)

(408)

(365)

(313)

(233)

(236)

(322)

(186)

Closing cash

6,571

5,964

5,504

4,913

4,438

3,986

3,523

3,099

2,750

2,380

1,972

1,754

Installers (FTE)

3.0

3.0

3.1

3.3

3.5

3.7

4.0

4.3

4.6

4.9

5.3

5.6

Billable hours

0

0

155

159

173

216

271

336

430

439

360

512

Utilisation

0%

0%

27%

26%

27%

31%

37%

42%

50%

48%

37%

49%

Appendix B — Assumption register

Table 45. Complete assumption register

Category

Assumption

Value

Revenue

Capacity

Gross installer-hours per FTE per month

187

Capacity

Physical utilisation ceiling in any month

94%

Pricing

PPF full-body / full-front / track pack (FY28, ex VAT)

R74,000 / R21,500 / R11,900

Pricing

Wrap / livery / ceramic / tint / correction

R38,000 / R8,900 / R13,500 / R3,600 / R6,400

Pricing

Annual list price escalation

6.0%

Mix

Share of hours: PPF lines combined

57%

Cost of sales

Materials

Premium PPF landed cost per square metre (FY28)

R840

Materials

Colour-change vinyl landed cost per square metre

R340

Materials

Film consumed, full-body installation (gross of offcut)

23 m²

Labour

Loaded installer cost per FTE per month (FY28)

R27,500

Labour

Installer wage escalation

CPI + 2.5pp

Quality

Rework and warranty provision

2.0% of revenue

Operating expenditure

Premises

Studio 1 / Studio 2 monthly rental (FY28)

R88,000 / R66,500

Utilities

Studio 1 / Studio 2 monthly electricity (FY28)

R31,000 / R23,000

Payroll

Non-installer studio payroll per site (FY28)

R145,000 / R108,000

Payroll

Head office payroll, FY28 / FY30 / FY32

R118k / R162k / R205k per month

Marketing

Marketing spend, launch / steady state

4.6% / 3.0% of revenue

Commercial

Dealer referral commission

11.0% of trade revenue

Commercial

Card acquiring fees

1.6% of revenue

Capital and financing

Capex

Studio 1 / Studio 2 capital expenditure

R5.60m / R3.90m

Capex

Maintenance capital expenditure from Year 3

1.2% of revenue

Depreciation

Leasehold / plant / vehicles / IT

10 / 5 / 5 / 3 years

Tax

Corporate income tax rate; assessed loss cap

27%; 80%

Tax

Provisional tax payment lag

Six months

Exit

Terminal EV/EBITDA multiple applied

6.0x

Appendix C — Glossary

Table 46. Glossary of terms

Term

Definition

Billable hours

Installer hours charged to a customer job, as distinct from hours paid

CCC

Cash conversion cycle — debtor days plus inventory days less creditor days

DAP

Design Access Program — licensed software pattern database for plotter film cutting

DSCR

Debt service cover ratio — EBITDA less tax, divided by interest plus scheduled principal

FTE

Full-time equivalent

MOIC

Multiple of invested capital

NRCS

National Regulator for Compulsory Specifications

PPF

Paint protection film — a thermoplastic polyurethane laminate applied to vehicle paint

ROCE

Return on capital employed — NOPAT divided by shareholders’ funds plus net debt

SAM

Serviceable available market

SOM

Serviceable obtainable market

TAM

Total addressable market

TPU

Thermoplastic polyurethane — the polymer used in premium self-healing films

Utilisation

Billable hours divided by gross available installer hours

WACC

Weighted average cost of capital