Polar Nexus Integrated Cold Storage — Appendices

Supporting appendices — the pricing rate card, the ten-year DSCR profile, the glossary and sources, the ten-year financial summary and the Year-1 quarterly ramp underpinning the Polar Nexus business plan and financial model.

Section 16 · Business Plan

Appendices

16.1 Pricing assumptions — rate card (per occupied pallet position / month)

Rate (ZAR)	Year 1	Year 2	Year 3	Year 4	Year 5
Storage rental	185	198	212	227	242
Handling (in/out)	250	268	286	306	328
Value-added services	135	158	185	216	253
Blended	570	624	683	749	823

16.2 Ten-year DSCR profile

Year	1	2	3	4	5	6	7	8	9	10
DSCR (×)	0.71	1.37	1.25	1.52	1.77	2.02	1.98	2.19	2.41	2.67

Note: Year-1 DSCR falls within the interest-only
grace period and is supported by the ramp-up reserve. From Year 3 (first
principal repayment) the ratio remains at or above the 1.25× covenant in
every period.

16.3 Glossary

Term	Definition
BESS	Battery energy storage system
B-BBEE	Broad-based black economic empowerment
CAGR	Compound annual growth rate
DSCR	Debt service coverage ratio — cash available for debt service ÷ scheduled debt service
DSRA	Debt service reserve account — ring-fenced cash covering future debt service
EBITDA	Earnings before interest, tax, depreciation and amortisation
EPC	Engineering, procurement and construction (turnkey delivery contract)
FEFO / FIFO	First-expired-first-out / first-in-first-out stock rotation
FSSC 22000 / HACCP	Internationally recognised food-safety management standards
IRR	Internal rate of return
LCOE	Levelised cost of electricity
MOIC	Multiple on invested capital
MWp	Megawatt-peak (solar generation capacity)
NPV	Net present value
SAM / SOM / TAM	Serviceable addressable / serviceable obtainable / total addressable market
VAS	Value-added services
WMS	Warehouse management system
3PL	Third-party logistics provider

Sources

Market and industry data referenced in this plan are drawn from
publicly available third-party research and have been paraphrased and
summarised, including: Grand View Research (cold chain and cold storage
market sizing); Mordor Intelligence (African cold chain logistics); the
Food and Agriculture Organization and World Bank (post-harvest losses);
WWF-SA and CSIR (food waste and energy); Agbiz, Trade Map and the Citrus
Growers’ Association (agricultural exports); and NERSA and the CSIR
(electricity tariffs and supply). Financial figures are outputs of the
Company’s financial model and are illustrative.

16.4 Ten-year financial summary (full debt-life)

The table below extends the projections across the full twelve-year
debt tenor (first ten years shown), illustrating the maturing margin
profile, the steady de-gearing of the balance sheet, and debt service
coverage strengthening to 2.67x by Year 10.

Yr	Occ.	Revenue	EBITDA	Margin	NPAT	DSCR	Debt close
1	62%	106,020	31,740	29.9%	(62,051)	0.71×	390,000
2	76%	142,135	61,499	43.3%	(32,293)	1.37×	390,000
3	84%	172,074	84,214	48.9%	(9,578)	1.25×	367,233
4	88%	197,765	102,577	51.9%	11,404	1.52×	341,848
5	90%	222,256	119,415	53.7%	31,161	1.77×	313,543
6	91%	247,363	136,403	55.1%	56,204	2.02×	281,983
7	91%	272,758	153,202	56.2%	57,333	1.98×	246,794
8	92%	304,616	175,602	57.6%	75,248	2.19×	207,558
9	92%	337,122	198,092	58.8%	94,959	2.41×	163,811
10	92%	373,804	223,969	59.9%	117,522	2.67×	115,032

Note: Years 6–10 assume continued occupancy
stability around 91–92% and ongoing rate escalation; taxation begins
once accumulated assessed losses are exhausted. Figures are model
outputs and illustrative.

16.5 Year-1 quarterly ramp (illustrative)

The first-year revenue ramp is underpinned by the anchor take-or-pay
commitment from commissioning, with contract and spot volumes layering
on through the year. The illustrative quarterly profile below averages
to the 62% Year-1 occupancy and R106.0 million revenue used in the
model.

Quarter	Q1	Q2	Q3	Q4	Year 1
Average occupancy	52%	58%	66%	72%	62%
Revenue (R’000)	22,232	24,797	28,217	30,774	106,020

Bankability summary

Polar Nexus combines structural market growth, anchor-underpinned
demand, conservative 50% gearing, a 38.7% cash break-even, energy
self-sufficiency and ring-fenced reserves to produce a financeable risk
profile: positive cash flow throughout, minimum post-grace DSCR of 1.25x
rising to 2.67x, a 17.1% project IRR and a 21.7% equity IRR. The Company
welcomes detailed due diligence and is ready to share its full financial
model on request.

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 Polar Nexus Integrated Cold Storage (Pty) Ltd.