Centurion Motor Exchange Business Plan — Appendix A: Scenario Parameters

The parameter set behind each modelled scenario, stated for independent testing.

Section 26 of 28

Appendix A: Scenario Parameters

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Table A.1: Model parameters by scenario

Parameter

Downside

Base

Upside

Stress

Volume multiplier

0.90

1.00

1.10

0.90

Trading spread

13.00%

14.00%

14.75%

13.00%

Average selling price FY28

R245,000

R245,000

R250,000

R245,000

Stock days

52

45

40

52

Finance penetration

58%

65%

70%

58%

Fixed cost multiplier

1.03

1.00

1.00

1.03

Interest-rate shock

+50bp

–

–

+50bp

Head office payroll

R1.5m

R2.4m

R2.4m

R2.4m

Site 2

No

Yes

Yes

Yes

Table A.2: Other fixed parameters

Parameter

Value

Parameter

Value

Ramp floor / time constant

28% / 6.0 months

Wholesale average price

R115,000

Minimum display (Site 1 / Site 2)

60 / 50 units

Amount financed ÷ VAT-incl. price

90%

Floor-plan advance rate

80%

Floor-plan limit

R25m / R50m

Minimum cash target

R1.5m

Stock insurance

0.35% p.a.

Maintenance capex

0.12% of retail sales

Site 2 capex factor

92% + 2 years CPI

Risk-free rate / ERP / beta

9.5% / 6.0% / 1.2

Specific risk premium

6.0%