Crownstone College Group Business Plan — Appendices

Appendix A — Capital expenditure schedule (R m)

	Year 1	Year 2	Year 3	Year 4	Year 5
Academic buildings	182	52	26	0	0
Boarding facilities	72	39	20	0	0
Sports complex	48	29	19	0	0
Arts centre	20	12	8	0	0
ICT infrastructure	25	11	8	7	4
Furniture & equipment	20	9	7	5	4
Land acquisition	120	0	0	0	0
Sustaining / expansion	0	32	26	26	21
Total cash capex	486	183	114	38	29

Appendix B — Depreciation, interest & tax (R m)

	Year 1	Year 2	Year 3	Year 4	Year 5
Depreciation (straight-line)	16	26	32	36	39
Gross PP&E	486	669	783	821	850
Accumulated depreciation	16	42	74	110	150
Interest expense	18	38	42	43	42
Debt (closing)	350	410	430	430	400
Taxation	0	0	0	0	2

Appendix C — Enrolment, utilisation & fee economics

	Year 1	Year 2	Year 3	Year 4	Year 5
Enrolled learners	650	900	1,200	1,500	1,800
Capacity utilisation	23%	32%	43%	54%	64%
Blended fee / learner (R000)	238	264	280	299	322
Tuition revenue (R m)	90	138	195	260	336
Boarding revenue (R m)	28	43	60	81	104
Commercial & other (R m)	37	57	81	108	139

Appendix D — Key assumptions register

Assumption	Value
Enrolment ramp	650 → 1,800 (Y5) → 2,800 (~Y9); 80–120% tested
Blended fee / learner	~R238k → R322k; +6% p.a.
EBITDA margin	–8% (Y1) → 19% (Y5) → ~32% steady state
Depreciation	Straight-line by vintage from commissioning
Cost of debt / tax	10% / 27% with 80% loss cap
Working capital	~5% of revenue (fees in advance)
Exit	11x EV/EBITDA (10–13x tested), Year-15 horizon
Project / equity IRR	~19% / ~22% (corroborates sponsor 18.7% / 22.9%)

Appendix E — Glossary

Term	Definition
Enrolment ramp	The multi-year build of learner numbers from opening toward full campus capacity.
Utilisation	Enrolled learners as a share of the 2,800-learner campus capacity.
J-curve	The pattern of negative early returns during the build/ramp, before strong later profitability.
CFADS / DSCR	Cash flow available for debt service; and CFADS divided by scheduled debt service.
Debt-service reserve	A ring-fenced fund, sized to future debt service, funded at close to meet interest during the ramp.
Terminal / exit value	The enterprise value of the mature campus at exit, here 11x mature EBITDA.
MOIC	Multiple of invested capital — total distributions divided by equity invested.
IEB	Independent Examinations Board — the independent-school matric examination, with ~98% pass rates.

Appendix F — Important notice

This document is strictly private and confidential. It has been prepared for the exclusive use of prospective financiers and does not constitute an offer of securities or investment advice. All projections are estimates based on stated assumptions and are subject to material risk, of which enrolment-ramp, early-year liquidity/debt-service, construction and exit-multiple risk are the most significant.