AgriNova Business Plan › Section 1 › Executive Summary

AgriNova Milling Technologies (Pty) Ltd is a proposed integrated
maize-milling and agro-processing enterprise to be established in South
Africa. The Company will combine three reinforcing activities under one
roof: (i) the milling of white maize into super and special maize meal,
samp and grits for human consumption; (ii) the production of
yellow-maize-based animal feed and the by-product bran stream; and (iii)
the design, fabrication, installation and servicing of milling and
feed-processing equipment for third-party operators, including a
community-mill programme aimed at rural and peri-urban
entrepreneurs.

This dual identity — a food manufacturer that also builds the
machines that make food — is the core of AgriNova’s strategy. The
milling operation generates stable, staple-food cash flows anchored in a
product (maize meal) that is consumed by virtually every South African
household. The equipment and services division captures higher-margin
engineering revenue, deepens customer relationships, and positions
AgriNova to benefit from the structural trend toward decentralised,
“milling-close-to-the-farmer” capacity across the region.

1.1 The Opportunity

Maize is the single most important field crop and staple food in
South Africa. The domestic maize market was valued at approximately USD
4.1 billion in 2025 and is forecast to reach roughly USD 5.1 billion by
2030, growing at a compound annual rate of about 4.5%. South Africa is
the largest maize producer on the African continent, accounting for an
estimated 16% of output, with a 2025/26 commercial crop forecast in the
region of 15.6 million tonnes. White maize, used predominantly for human
consumption, underpins national food security; per-capita maize-meal
consumption is among the highest in the world at roughly 81 kilograms
per person per year.

The milling sector is concentrated at the top — the three largest
groups account for an estimated 60% of branded maize-meal sales — but is
fragmented below that tier and is widely regarded as oversupplied and
ripe for consolidation. Recent corporate activity, including the exit of
one major diversified group from maize milling, signals both the
competitive intensity at the commodity end and the openings available to
focused, efficient, well-capitalised entrants. Smaller and regional
millers have been steadily gaining share by operating closer to growers
and customers and by running leaner cost structures.

1.2 Why Now

• Soft input prices. White-maize prices fell
  roughly 36% year-on-year through late 2025 on the back of a large crop,
  easing the single largest cost in milling and creating a favourable
  window to commission new capacity.
• Structural staple demand. Maize meal is a
  price-inelastic staple; volumes are resilient through economic cycles,
  supporting stable base-load throughput.
• Decentralisation tailwind. Demand for smaller,
  modular mills sited near production areas is rising, expanding
  AgriNova’s addressable equipment market.
• Feed-sector growth. South Africa’s compound
  animal-feed market of around 8.4 million tonnes per year, led by
  poultry, provides a natural outlet for yellow maize and milling
  by-products.

1.3 The Investment Ask

AgriNova is seeking total capital of R240 million, structured as R120
million of equity and R120 million of senior secured debt. The senior
facility is modelled over an eight-year tenor at an indicative all-in
rate of 12.5%, with a 24-month principal moratorium covering the
construction and commissioning period. Proceeds will fund land, plant
construction, milling and feed equipment, a fabrication workshop, fleet,
licensing and working capital, together with a prudent contingency
reserve.

Figure 1.1

1.4 Financial Highlights

The five-year base-case projections summarised below are drawn from a
fully integrated, bottom-up financial model in which the income
statement, balance sheet and cash-flow statement reconcile in every
period. Revenue grows from R182.5 million in Year 1 to R547.7 million in
Year 5 as plant utilisation ramps from 30% to 80%, while EBITDA margin
expands from 11.1% to 19.0% on improving operating leverage.

Figure 1.2

1.5 Returns Summary

On the base case, the project generates an unlevered internal rate of
return (IRR) of approximately 24.8% and a net present value of R192.2
million at a 10% discount rate. Equity returns, which benefit from
leverage and an assumed exit at 5.0 times Year-5 EBITDA, are materially
higher. Management stresses that equity returns are terminal-value
sensitive and that the operating payback of 6.4 years is the more
conservative reference point for credit assessment.

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.