Kalahari Crown Exports — Financial Plan

The key assumptions, the capital requirement and uses of funds, the funding structure, the projected income statement, cash flow statement and balance sheet, and the returns and debt serviceability.

Section 11 · Business Plan

Financial Plan

The key assumptions, the capital requirement and uses of funds, the funding structure, the projected income statement, cash flow statement and balance sheet, and the returns and debt serviceability.

The financial plan presents the Company’s capital requirement,
funding structure and fully integrated three-statement projections —
income statement, balance sheet and cash flow — over a seven-year
horizon. The model is internally consistent: the statements reconcile,
and all charts in this plan are generated from the same underlying
model.

9.1 Key Assumptions

Assumption	Basis
Crop yields (t/ha)	Conservative export-grade yields per crop, ramped by maturity curve
Export price escalation	5.5% p.a. (inflation + FX drift + premium positioning)
Cost of production	78% of farming revenue in Y1, improving to 43% by Y7 with scale
Operating expenses	Fixed base plus ~8.5% of revenue (variable)
Senior debt rate	11.5% p.a.; amortising from Year 3
Corporate tax	27% (SA statutory), with assessed-loss carry-forward
Working capital	~14% of revenue
Maintenance capex	~5% of revenue from Year 4
Terminal value	8.0x Year-7 EBITDA, net of debt, for equity-return analysis

9.2 Capital Requirement (Uses of Funds)

The total project capital requirement is R2,390 million, deployed
across land, infrastructure, orchard establishment, logistics,
technology and pre-operating working capital.

Figure 8.

Figure 8. Capital investment programme by category (ZAR millions).

Use of funds	ZAR (m)	% of total
Land acquisition & development	550	23.0%
Irrigation infrastructure	220	9.2%
Orchard & vineyard establishment	310	13.0%
Packing facilities	350	14.6%
Cold storage	300	12.6%
Equipment & machinery	180	7.5%
Logistics fleet	150	6.3%
Technology & systems	80	3.3%
Pre-operating & working capital	250	10.5%
Total	2,390	100.0%

9.3 Funding Structure (Sources of Funds)

Total funding of R3,010 million is raised through a blended structure
designed to be bankable and development-finance-aligned, with a
conservative gearing profile and a revolving facility to fund seasonal
working-capital peaks.

Figure 9.

Figure 9. Funding structure by source (ZAR millions).

Source of funds	ZAR (m)	% of total
Equity (promoters & investors)	1,180	39.2%
Senior debt (Land Bank / IDC / DBSA)	1,070	35.5%
DFI grant & mezzanine	360	12.0%
Revolving working-capital facility	400	13.3%
Total	3,010	100.0%

9.4 Projected Income Statement

The income statement reflects the biological reality of an orchard
ramp-up: planned losses during establishment (Years 1–2), EBITDA
breakeven in Year 3, net-profit breakeven in Year 4, and strong margin
expansion thereafter as orchards mature and fixed costs are absorbed
across a larger base.

Figure 10.

Figure 10. Projected revenue build by stream (ZAR millions).

Income statement (Rm)	Y1	Y2	Y3	Y4	Y5	Y6	Y7
Farming revenue	58	269	672	1,246	1,887	2,534	3,146
Processing revenue	6	24	62	118	188	270	360
Ancillary revenue	18	55	120	210	310	430	560
Total revenue	82	348	854	1,574	2,385	3,234	4,066
Cost of sales	58	210	463	791	1,142	1,500	1,859
Gross profit	24	138	391	783	1,243	1,734	2,207
Operating expenses	102	160	238	334	438	545	646
EBITDA	-78	-22	153	449	805	1,189	1,562
Depreciation	88	115	133	133	133	133	133
EBIT	-166	-137	21	317	673	1,057	1,429
Interest	123	123	123	111	95	75	52
Profit before tax	-289	-260	-102	206	578	982	1,377
Tax	0	0	0	0	36	265	372
Net profit	-289	-260	-102	206	542	717	1,005

Figure 11.

Figure 11. EBITDA and EBITDA margin, Years 1–7.

Figure 12.

Figure 12. Year-5 profitability bridge — from revenue to net profit (ZAR millions).

9.5 Projected Cash Flow Statement

The cash-flow statement confirms the Company remains cash-positive
throughout the projection, with the funding structure sized to absorb
the Year-1–3 development and ramp-up phase before operating cash flow
turns strongly positive.

Cash flow (Rm)	Y1	Y2	Y3	Y4	Y5	Y6	Y7
Operating cash flow	-213	-182	-40	238	561	730	1,021
Investing cash flow	-669	-382	-239	-79	-119	-162	-203
Financing cash flow	0	0	-107	-140	-170	-200	-215
Closing cash	1,029	464	78	97	369	737	1,340

Figure 13.

Figure 13. Projected closing cash position, Year 0–7 (ZAR millions).

9.6 Projected Balance Sheet

The balance sheet shows a capital-intensive asset base — dominated by
orchards, packing and cold-storage infrastructure — funded by a
deleveraging mix of equity and senior debt. Retained earnings rebuild
equity from Year 4, and gearing falls steadily as debt amortises.

Balance sheet (Rm)	Y0	Y1	Y2	Y3	Y4	Y5	Y6	Y7
Property, plant & equipment	1,099	1,681	1,948	2,055	2,001	1,988	2,017	2,088
Working capital / inventory	0	12	49	120	220	334	453	569
Cash & equivalents	1,911	1,029	464	78	97	369	737	1,340
Total assets	3,010	2,721	2,461	2,252	2,318	2,690	3,207	3,997
Senior debt	1,070	1,070	1,070	963	823	653	453	238
Other liabilities	400	400	400	400	400	400	400	400
Equity	1,540	1,251	991	889	1,095	1,637	2,354	3,359

Figure 14.

Figure 14. Balance-sheet asset composition, Year 0–7 (ZAR millions).

Figure 15.

Figure 15. Capital structure and gearing, Year 0–7.

9.7 Returns & Debt Serviceability

39.3% Equity IRR	R3,987m NPV @ 15%	38.4% Y7 EBITDA margin	91.7% Revenue CAGR

Debt serviceability is robust once operations mature. The
debt-service-coverage ratio (DSCR) rises comfortably above the typical
1.3x lender covenant floor from Year 4 onward, supporting the proposed
senior-debt quantum and amortisation profile.

Figure 16.

Figure 16. Debt-service-coverage ratio versus lender covenant floor.

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 Kalahari Crown Exports (Pty) Ltd.