AgriNova – Business Plan

Investment-grade business plan for AgriNova Milling Technologies (Pty) Ltd — an R240-million raise (R120m equity and R120m senior debt) to build an integrated maize milling and agro-processing business in South Africa across milled maize products, animal feed and milling equipment and engineering, growing revenue from R182.5 million to R547.7 million by Year 5 as the EBITDA margin expands from 11.1% to 19.0%, delivering a 24.8% project IRR, a 36.8% levered equity IRR, a minimum annual DSCR of 1.29× and a 6.4-year operating payback.

Confidential Investment-Grade Business Plan

AgriNova

An integrated maize milling and agro-processing business for South Africa — spanning milled maize products, animal feed, and milling equipment and engineering, supported by a rural community-mill programme — structured as an investment-grade R240-million opportunity for senior lenders and equity investors.

Legal Entity

AgriNova Milling Technologies (Pty) Ltd

Location

Republic of South Africa

Capital Raise

R240 million

Structure

R120m equity + R120m senior debt

Revenue (Yr1 → Yr5)

R182.5m → R547.7m

EBITDA Margin (Yr1 → Yr5)

11.1% → 19.0%

Project IRR / Equity IRR

24.8% / 36.8%

NPV (@10% / @15%)

R192.2m / R110.8m

Min DSCR · Payback

1.29× · 6.4 yrs

Sector

Agri-Processing — Maize Milling

The Opportunity

Maize is the backbone of South African food security — white maize underpins staple human consumption while yellow maize drives a large animal-feed market — yet milling capacity is concentrated among a few incumbents, leaving room for a modern, efficient, well-located integrated miller. AgriNova captures this with three reinforcing revenue streams: milled maize products, animal feed, and milling equipment and engineering (installation, maintenance, spares and training), amplified by a rural community-mill programme that extends reach and development impact. An R240-million raise (R120m equity and R120m senior debt) funds the plant and ramp — growing revenue from R182.5 million to R547.7 million by Year 5 as plant utilisation climbs from 30% to 80% and the EBITDA margin expands from 11.1% to 19.0% on improving operating leverage — delivering a 24.8% project IRR (NPV of R192.2 million at 10%), a 36.8% levered equity IRR (NPV of R110.8 million at 15%), a minimum annual DSCR of 1.29× and an operating payback of 6.4 years, with multiple credible exit routes over a five-to-seven-year horizon.

Plan Contents

This investor-grade business plan is organised into the sections below. Each section is a dedicated page — select any to explore the full detail.

Confidentiality & Disclaimer

This business plan (the “Plan”) has been prepared by the management
of AgriNova Milling Technologies (Pty) Ltd (“AgriNova” or the “Company”)
solely to assist prospective lenders and equity investors in evaluating
a potential investment in, or financing of, the Company. It does not
constitute an offer to sell, or a solicitation of an offer to subscribe
for or purchase, any securities, nor shall it form the basis of, or be
relied upon in connection with, any contract or commitment
whatsoever.

The financial projections contained herein are illustrative and have
been derived from a bottom-up operating and financial model based on
assumptions that management considers reasonable as at the date of
preparation. They depend on the achievement of operational milestones,
prevailing commodity prices, macroeconomic conditions and a range of
other factors, many of which are outside the Company’s control. Actual
results will differ from the projections, and those differences may be
material. The projections have not been audited, reviewed or compiled by
an independent accountant and should be independently verified by each
recipient’s own financial, legal, tax and technical advisers before any
investment or credit decision is made.

Industry and market data referenced in this Plan are drawn from
third-party sources believed to be reliable, including
agricultural-economics commentary, sector reports and official
statistics. While management believes such information to be accurate,
it has not independently verified all third-party data and gives no
warranty as to its completeness or accuracy. Forward-looking statements
speak only as at the date of this Plan, and the Company undertakes no
obligation to update them.

By accepting this Plan, the recipient agrees to keep its contents
strictly confidential, to use it solely for the purpose of evaluating
the opportunity described, and to return or destroy it upon request.

Reader guidance on the financial model

The consolidated gross margin of approximately 32–33% reflects a
blend of thin-margin commodity milling and the higher-margin equipment
and services division, and currently benefits from soft white-maize
input prices. A normalisation of maize prices toward import-parity
levels would compress milling margins materially — this sensitivity is
quantified in Section 13. Analysts should treat the milling and
equipment economics as distinct profit pools rather than a single
uniform margin.

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 AgriNova Milling Technologies (Pty) Ltd.