CluckCore Integrated Poultry Group — Investor Returns & Exit Strategy

The equity returns, headline and normalised, the valuation and the exit pathways underpinning CluckCore.

Section 23 · Business Plan

Investor Returns & Exit Strategy

The equity returns, headline and normalised, the valuation and the exit pathways underpinning CluckCore.

Equity returns, headline and normalised

We present returns two ways. The headline case runs
off the sponsor’s EBITDA at a 6.5x exit multiple (mid-range for SA
agro-processing). The industry-normalised case
recomputes returns at a still-strong 12% EBITDA margin, roughly the top
of the sector’s normal band, to show what the deal returns if
CluckCore’s margins land closer to industry reality than to the
sponsor’s projection.

Metric	Headline case	Industry-normalised (12% margin)
FY2031 EBITDA	R1 100m	R408m
Exit multiple	6.5x	6.5x
Enterprise value	R7 150m	R2 652m
Equity value (EV + net cash)	R7 723m	R3 225m
Equity invested	R500m	R500m
Money multiple (MOIC)	15.4x	6.5x
Implied IRR	73%	45%

Figure 17

Figure 17 — Equity returns — headline versus industry-normalised margins

HOW TO READ THESE RETURNS

The headline MOIC looks spectacular precisely because the sponsor’s
margins are rich and the equity cheque is small relative to the EBITDA
it supposedly generates, which is exactly why it should be treated with
caution, not celebrated. The industry-normalised case is the more
defensible underwriting anchor: even at a 12% margin the deal returns
roughly 6.5x MOIC / 45% IRR, which is genuinely attractive for
agro-processing and does not require heroic assumptions. Our advice to
investors: underwrite to the normalised case and treat any upside toward
the headline as optionality, not the base case.

Figure 18

Figure 18 — Equity MOIC sensitivity — exit multiple × FY2031 EBITDA delivery

Exit pathways

Strategic acquisition: the most probable route,
Astral, Rainbow, Quantum or Country Bird acquiring regional capacity and
a contract-farmer network; consolidation is a recurring feature of the
sector.
Agro-processing consolidation: a food-group or
FMCG distributor acquiring integrated processing and cold-chain
reach.
Private-equity exit: secondary sale to an
agri-focused fund seeking a scaled, de-risked platform.
Listed agribusiness route: reverse-in or IPO at
scale, subject to margin durability and market conditions.

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 CluckCore Integrated Poultry Group (Pty) Ltd.