BuildCore Retail Group — Investment Opportunity & Returns

The R1.45 billion capital raise and structure, the use of proceeds and the indicative returns, including the conservative 7.0× EV/EBITDA exit and the illustrative 1.8× equity money multiple over the five-year horizon.

BuildCore Retail Group Business PlanSection 15 › Investment Opportunity & Returns

Section 15 · Business Plan

Investment Opportunity & Returns

The R1.45 billion capital raise and structure, the use of proceeds and the indicative returns, including the conservative 7.0× EV/EBITDA exit and the illustrative 1.8× equity money multiple over the five-year horizon.

15.1 The Capital Raise

BuildCore is seeking R1.45 billion in total funding, structured as
R950 million of equity and a R500 million senior secured term debt
facility. The structure deliberately limits gearing to preserve
resilience through the build-out, with senior debt amortising over the
plan horizon. The Group welcomes participation from private equity
investors, strategic retail investors, infrastructure funds and
development finance institutions whose mandates align with the Group’s
commercial and developmental profile.

Funding instrument Amount (R’m) Share
Institutional & founder equity 950 66%
Senior secured term debt 500 34%
Total capital raise 1,450 100%

Table 15.1 — Proposed capital structure.

15.2 Indicative Returns

On a conservative exit basis — applying a 7.0x EV/EBITDA multiple to
Year 5 EBITDA of R274 million and adjusting for net debt and cash — the
implied equity value supports an illustrative gross money multiple of
approximately 1.8x on the equity invested over the five-year horizon,
before accounting for the substantial optionality embedded in regional
(SADC) expansion and continued network growth beyond the plan period.
The exit multiple is conservative relative to listed sector comparables
and does not assume multiple expansion.

Return metric Value
Year 5 EBITDA R274 million
Exit EV/EBITDA multiple (conservative) 7.0x
Implied enterprise value ~R1,915 million
Less: net debt; add: cash Adjusted for closing position
Implied equity value at exit ~R1,533 million
Illustrative gross money multiple (MOIC) ~1.8x

Table 15.2 — Illustrative exit returns (before regional-expansion
optionality).

Why BuildCore Defensive, essential demand in a market underpinned by a structural housing shortfall. Benchmarked, cash-generative economics drawn from a proven mass-market retail model. Disciplined, fully funded plan with conservative gearing and a clear path to profitability. Differentiated digital and contractor-credit capability in a slow-to-digitise sector. Defined exit pathways and significant regional growth optionality beyond the plan horizon.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of BuildCore Retail Group.