Business Plan Africa Investor-Ready Plans

Kalahari Crown Exports — Appendices

Supporting appendices — the detailed financial assumptions, the full income statement, the full cash flow and balance sheet, the glossary and the sources and references underpinning the Kalahari Crown Exports business plan and financial model.

Kalahari Crown Exports Business Plan › Section 18 › Appendices

Section 18 · Business Plan

Appendices

Supporting appendices — the detailed financial assumptions, the full income statement, the full cash flow and balance sheet, the glossary and the sources and references underpinning the Kalahari Crown Exports business plan and financial model.

Appendix A: Detailed Financial Assumptions

The following assumptions drive the integrated financial model. They
have been set conservatively and can be stress-tested individually using
the sensitivity framework in Section 10.1.

Parameter Value Notes
Projection horizon Year 0 + 7 years Year 0 = development / pre-operating
Reporting currency ZAR (millions) Export realisations include FX drift
Export price escalation 5.5% p.a. Inflation + FX + premium positioning
Cost of sales (Y1 → Y7) 78% → 43% Of farming revenue; improves with scale
Fixed operating expenses R95m → R300m Grows with organisational build
Variable operating expenses 8.5% of revenue Marketing, freight admin, certification
Senior debt interest 11.5% p.a. Amortising from Year 3
Principal repayment From Year 3 R107m–R215m p.a.
Corporate tax rate 27% SA statutory; assessed-loss carry-forward
Depreciation ~7.2% of depreciable base Straight-line on infrastructure
Working capital 14% of revenue Net inventory + receivables − payables
Maintenance capex (Y4+) 5% of revenue Sustaining capital
Terminal value multiple 8.0x EBITDA Year-7 EBITDA, net of debt
Discount rate (NPV) 15% Equity-return basis

Appendix B: Full Income Statement

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

Margin summary

Margin (%) Y1 Y2 Y3 Y4 Y5 Y6 Y7
EBITDA margin -95.8% -6.2% 18.0% 28.5% 33.8% 36.8% 38.4%
Net margin -353.1% -74.7% -12.0% 13.1% 22.7% 22.2% 24.7%

Appendix C: Full Cash Flow & Balance Sheet

Cash flow statement

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

Balance sheet

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

Appendix D: Glossary

Term Definition
B-BBEE Broad-Based Black Economic Empowerment — South African transformation framework
CAGR Compound annual growth rate
CGA Citrus Growers’ Association of Southern Africa
Cold chain Temperature-controlled supply chain preserving perishable quality
DFI Development finance institution (e.g. IDC, Land Bank, DBSA, AfDB)
DSCR Debt-service-coverage ratio (EBITDA ÷ debt service)
EBITDA Earnings before interest, tax, depreciation and amortisation
FOB Free on board — export pricing basis
GlobalGAP Global standard for good agricultural practice / certification
IRR Internal rate of return
NPV Net present value
Phytosanitary Plant-health measures governing cross-border produce trade
Reefer Refrigerated shipping container
SATI South African Table Grape Industry
Vision 260 CGA strategy to export 260 million citrus cartons annually by 2032

Appendix E: Sources & References

Industry statistics cited in this plan are drawn from publicly
available data published by recognised South African and international
agricultural bodies and trade publications, including:

  • Citrus Growers’ Association of Southern Africa (CGA) — export
    volumes and Vision 260 strategy.
  • South African Table Grape Industry (SATI) — table grape
    statistics, regions and varieties.
  • Hortgro — deciduous and stone-fruit export data.
  • Fresh Produce Exporters’ Forum (FPEF) — export composition and
    destinations.
  • National Agricultural Marketing Council (NAMC) — fruit trade-flow
    reporting.
  • Bureau for Food and Agricultural Policy (BFAP) — logistics-cost
    analysis.
  • Agbiz / Agribook and international trade publications (Fruitnet,
    FreshPlaza, FreshFruitPortal) — sector commentary and export-value
    data.
Note: Figures have been compiled from the most recent publicly available sources at the time of preparation and are used to characterise the market environment. Prospective investors should verify current data as part of their due diligence.
Related sections

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.