GreenScape Landscapes Business Plan — Appendices

Supporting schedules, detailed financial statements and the assumption register behind the plan.

Section 25 of 25

Appendices

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25.1 Appendix A — Assumptions register

Table 51. Consolidated assumptions register

Parameter	Assumption
Corporate tax rate	27% (with assessed-loss carry-forward, 80% utilisation cap)
Prime lending rate	11.0%
Asset finance rate	13.0% (prime + 2%), 5-year amortising
Term loan rate	14.0% (prime + 3%), 5-year, 24-month principal moratorium
Working-capital facility rate	14.5%, revolving, R1.5m limit
Debtor days / inventory days / creditor days	35 / 12 / 30
Wage escalation	~6.5% p.a.
Fuel escalation	~7% p.a.
Bad-debt provision	0.9% of revenue
Depreciation lives	Vehicles/trailers 5y; equipment 4y; office/IT 3y
WACC (DCF)	18.5%
Terminal growth (DCF)	3.0%
Exit multiple (returns)	5.0x EV/EBITDA (base)
Minimum cash buffer	R300k

25.2 Appendix B — Full income statement

Table 52. Income statement (base case), ZAR ’000

ZAR ’000	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	6,266	12,710	22,180	35,100	49,920
Gross profit	2,464	5,625	11,062	18,121	26,259
EBITDA	-812	930	4,133	8,442	13,370
EBIT	-1,446	8	2,809	6,695	11,199
Profit before tax	-1,916	-512	2,253	6,152	10,703
Net profit after tax	-1,916	-512	2,132	4,659	7,813

25.3 Appendix C — Reconciliation note

Financial-integrity confirmation. The three financial statements are fully integrated. The balance sheet balances in every projected period, with a maximum reconciliation error across all five years of R0k (i.e. zero to the Rand). Retained earnings roll forward from net profit after tax; debt balances roll forward from the debt schedule; interest expense reflects opening debt balances via an iterative solve; depreciation reflects the per-tranche asset base; tax reflects the assessed-loss carry-forward with the 80% utilisation cap; working capital reflects the stated day assumptions; and the funding requirement reconciles to the sources and uses of funds. Investor returns reconcile to the exit valuation and ownership assumptions.

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25.4 Appendix D — Year-1 monthly profit & loss

The monthly view below reconciles exactly to the annual Year-1 income statement. It shows the operating logic of the ramp: earnings are negative while the recurring base is being built, the monthly result turns positive from around month nine as maintenance density rises, and the cumulative EBITDA trough (roughly R1.0m) sets the equity and facility buffer the funding structure is sized to absorb.

Table 53. Year-1 monthly income statement (ZAR ’000)

Month	Revenue	COGS	Gross	Opex	EBITDA	Cum.
M1	178	108	70	273	-203	-203
M2	215	131	85	273	-188	-391
M3	260	158	102	273	-171	-562
M4	315	191	124	273	-149	-711
M5	385	234	152	273	-122	-833
M6	466	283	183	273	-90	-923
M7	554	336	218	273	-55	-978
M8	641	389	252	273	-21	-999
M9	722	438	284	273	11	-988
M10	792	480	311	273	38	-950
M11	847	514	333	273	60	-890
M12	892	541	351	273	78	-812
Year 1	6,266	3,802	2,465	3,276	-812

25.5 Appendix E — Five-year operating-expense schedule

Operating expenses are semi-fixed. They rise in absolute terms as the administrative and sales base scales, but fall sharply as a share of revenue — from roughly 52% of revenue in Year 1 to about 25% by Year 5 — which is the principal driver of margin expansion alongside gross-margin improvement.

Table 54. Operating expenses by line item (ZAR ’000)

ZAR ’000	Year 1	Year 2	Year 3	Year 4	Year 5
Administrative & management salaries	1,600	2,300	3,300	4,900	6,500
Marketing & business development	560	840	1,220	1,620	2,100
Depot & office rent	300	321	620	663	1,000
Insurance	150	230	340	470	620
IT & software	110	170	250	350	460
Fleet sundry & licensing	80	130	190	270	360
Professional & compliance fees	140	180	230	300	380
Office, utilities & communications	180	250	350	470	600
Training & development	100	160	230	320	420
Bad-debt provision	56	114	200	316	449
Total operating expenses	3,276	4,695	6,930	9,679	12,889
Opex as % of revenue	52.3%	36.9%	31.2%	27.6%	25.8%

25.6 Appendix F — Debt and facilities schedule

The business is funded with a deliberately conservative debt package: amortising asset finance secured on the fleet, a term loan carrying a 24-month principal moratorium, and a working-capital revolver used only to hold the minimum-cash buffer. Debt-service cover is tight in the ramp years by design — the moratorium and equity buffer bridge this — and then strengthens rapidly as EBITDA scales, with the company reaching a net-cash position by Year 4.

Table 55. Debt, facilities and credit metrics (ZAR ’000 unless stated)

ZAR ’000	Year 1	Year 2	Year 3	Year 4	Year 5
Term & asset-finance debt (closing)	3,191	3,426	3,059	2,736	2,071
Revolving credit facility (closing)	0	36	0	0	0
Total interest-bearing debt	3,191	3,462	3,059	2,736	2,071
less: Cash & equivalents	-1,466	-300	-736	-3,605	-8,995
Net debt / (net cash)	1,726	3,162	2,323	-870	-6,924
Drawdowns during year	0	726	690	1,035	1,035
Principal & facility repayments	-309	-455	-1,093	-1,359	-1,700
Finance costs (interest)	-470	-520	-555	-543	-496
DSCR	-1.00x	1.00x	2.60x	4.40x	6.10x
Interest cover (EBIT/interest)	-1.70x	1.80x	7.40x	15.50x	27.00x
Net debt / EBITDA	n/a	3.40x	0.60x	-0.10x	-0.50x

DSCR is shown against the 1.3x covenant floor; the Year-2 ratio below 1.0x is covered by the principal moratorium and the retained equity buffer, not by new borrowing.

25.7 Appendix G — Capital expenditure and depreciation schedule

Initial capital expenditure equips three founding crews and the depot. Subsequent capex is growth capital — predominantly additional vehicles, trailers and equipment sets — released in step with team additions and largely funded by asset finance. Depreciation follows a per-asset straight-line basis (vehicles and trailers over five years, field equipment over four, office and IT over three).

Table 56. Initial capital expenditure by category (ZAR ’000)

Category	ZAR ’000
Vehicles & trailers	1,625
Lawn-care equipment	360
Landscaping tools & machinery	90
Irrigation equipment	120
Workshop & depot fit-out	150
Office & IT	180
Branding & vehicle livery	160
Pre-operating & mobilisation	220
Total initial capital expenditure	2,905

Table 57. Fixed-asset roll-forward — net book value (ZAR ’000)

ZAR ’000	Year 1	Year 2	Year 3	Year 4	Year 5
Opening net book value	0	2,272	2,639	3,105	3,443
Additions (capital expenditure)	2,905	1,290	1,790	2,085	2,635
less: Depreciation charge	-634	-922	-1,324	-1,747	-2,171
Closing net book value	2,272	2,639	3,105	3,443	3,907

25.8 Appendix H — Full projected balance sheet

Table 58. Projected statement of financial position (ZAR ’000)

ZAR ’000	Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
Cash & equivalents	1,466	300	736	3,605	8,995
Accounts receivable	601	1,219	2,127	3,366	4,787
Inventory	42	82	137	210	294
Property, plant & equipment (net)	2,272	2,639	3,105	3,443	3,907
Total assets	4,380	4,240	6,105	10,624	17,984
LIABILITIES
Accounts payable	104	205	342	525	736
Term & asset-finance debt	3,191	3,426	3,059	2,736	2,071
Revolving credit facility	0	36	0	0	0
Total liabilities	3,295	3,668	3,401	3,260	2,807
EQUITY
Share capital	3,000	3,000	3,000	3,000	3,000
Retained earnings	-1,916	-2,427	-296	4,364	12,177
Total equity	1,084	573	2,704	7,364	15,177
Total equity & liabilities	4,380	4,240	6,105	10,624	17,984

The balance sheet balances in every projected period (total assets equal total equity and liabilities to the Rand).

25.9 Appendix I — Full projected cash-flow statement

Table 59. Projected statement of cash flows (ZAR ’000)

ZAR ’000	Year 1	Year 2	Year 3	Year 4	Year 5
OPERATING ACTIVITIES
EBITDA	-812	930	4,133	8,442	13,370
Working-capital movement	-539	-557	-826	-1,129	-1,294
Taxation paid	-0	-0	-122	-1,492	-2,890
Cash flow from operations	-1,351	373	3,185	5,820	9,186
INVESTING ACTIVITIES
Capital expenditure	0	-1,290	-1,790	-2,085	-2,635
Cash flow from investing	0	-1,290	-1,790	-2,085	-2,635
FINANCING ACTIVITIES
Equity injection	3,000	0	0	0	0
Debt drawdowns	0	690	690	1,035	1,035
Debt repayments	-309	-455	-1,057	-1,359	-1,700
Revolver movement (net)	0	36	-36	0	0
Interest paid	-470	-520	-555	-543	-496
Closing cash & equivalents	1,466	300	736	3,605	8,995

Closing cash reconciles to the cash line of the balance sheet in every period.

25.10 Appendix J — First-year 90-day mobilisation plan

The first ninety days convert funding into an operating platform: legal and banking set-up, the depot and first three crews, the customer-management and scheduling systems, and the opening pipeline of maintenance contracts. The plan below sequences the critical path so that the first crews reach billable utilisation as early as possible.

Table 60. 90-day mobilisation plan

Workstream	Weeks 1–4	Weeks 5–8	Weeks 9–12
Legal, banking & compliance	Company, VAT, COIDA, insurance and bank facilities in place	Asset-finance and term-loan drawdown; revolver activated	Compliance calendar operating; first management accounts
Depot & fleet	Secure depot leased; workshop fit-out begun	Vehicles, trailers and equipment delivered and liveried	Preventive-maintenance and tracking systems live
People	MD, Ops Manager and first crew leaders appointed	Three founding crews recruited and inducted	Safety, quality and productivity standards embedded
Systems	CRM, scheduling and quoting platform selected	Job-costing, invoicing and route planning configured	KPI dashboard reporting weekly
Commercial	Target-customer list and pricing finalised	First maintenance contracts signed; project quoting live	Recurring base building toward Year-1 contract target

25.11 Appendix K — Five-year revenue build by driver

Revenue is built from operating drivers rather than an assumed growth rate. The bridge below shows, for each line, the volume driver and the average unit value that produce the revenue in the income statement. Revenue rows are stated in ZAR ’000 and the unit values in Rand.

Table 61. Driver-based revenue build (revenue rows in ZAR ’000; unit values in Rand)

ZAR ’000 / drivers	Year 1	Year 2	Year 3	Year 4	Year 5
Maintenance contracts (avg active)	80	150	250	375	500
× Average monthly value (R)	R3,600	R4,000	R4,400	R4,800	R5,200
= Maintenance revenue	3,456	7,200	13,200	21,600	31,200
Landscaping projects (number)	40	70	100	140	180
× Average project value (R)	R45,000	R48,000	R52,000	R56,000	R60,000
= Landscaping revenue	1,800	3,360	5,200	7,840	10,800
Irrigation projects (number)	20	40	65	90	120
× Average project value (R)	R28,000	R30,000	R32,000	R34,000	R36,000
= Irrigation revenue	560	1,200	2,080	3,060	4,320
Additional services revenue	450	950	1,700	2,600	3,600
Total revenue	6,266	12,710	22,180	35,100	49,920

The build makes the growth logic explicit and testable: maintenance revenue scales with the number of active contracts and gradual price escalation; project revenue scales with project volume and modest value growth; and additional services grow with the installed base. The sensitivity analysis confirms that maintenance-contract volume is the single most important value driver — which is why the commercial strategy prioritises the recurring base.

25.12 Appendix L — Glossary of financial and technical terms

The following terms are used throughout this memorandum.

Term	Definition
ARPU / average contract value	Average revenue earned per maintenance contract or customer over a period.
CAGR	Compound annual growth rate — the constant annual rate that connects a starting and ending value over several years.
Contribution margin	Revenue less variable (direct) costs, expressed in Rand or as a percentage; the margin available to cover fixed costs.
DCF	Discounted cash flow — a valuation that discounts projected free cash flows to present value at the weighted average cost of capital.
DSCR	Debt-service cover ratio — cash available for debt service divided by scheduled principal and interest; lenders typically require at least 1.2–1.3x.
EBITDA	Earnings before interest, tax, depreciation and amortisation — a proxy for operating cash generation before capital structure and non-cash charges.
EBIT	Earnings before interest and tax (operating profit after depreciation).
Enterprise value (EV)	The value of the operating business to all capital providers — equity value plus net debt.
Equity value	The value attributable to shareholders — enterprise value less net debt.
Exit multiple	The EV/EBITDA multiple assumed on a future sale or refinancing, used to estimate exit value.
Free cash flow (FCF)	Operating cash flow after tax and capital expenditure — the cash available to service and reward capital.
Gross margin	Gross profit (revenue less cost of sales) as a percentage of revenue.
Interest cover (ICR)	Operating profit (EBIT) divided by interest expense — a measure of the cushion for meeting interest.
IRR	Internal rate of return — the annualised discount rate at which an investment’s net present value equals zero.
MOIC	Multiple on invested capital — total proceeds to an investor divided by capital invested (also “money multiple”).
Net debt	Total interest-bearing debt less cash and equivalents; a negative figure denotes a net-cash position.
Net margin	Net profit after tax as a percentage of revenue.
OPEX	Operating expenses — the semi-fixed overheads of running the business, excluding direct cost of sales.
PPE	Property, plant and equipment — the fixed-asset base, shown net of accumulated depreciation.
SAM	Serviceable available market — the portion of the total market the company can realistically serve given geography and segment focus.
SOM	Serviceable obtainable market — the share of the SAM the company expects to capture over the plan period.
TAM	Total addressable market — the total revenue opportunity if the entire relevant market were served.
Terminal growth rate (TGR)	The perpetual growth rate assumed for cash flows beyond the explicit forecast in a DCF.
WACC	Weighted average cost of capital — the blended required return on debt and equity, used to discount cash flows.
Working capital	Net investment in receivables and inventory less payables; growth in working capital consumes cash.

25.13 Appendix M — Basis of preparation and information sources

This memorandum has been prepared as a decision-support document for prospective investors and lenders. The following notes set out the basis on which it was prepared.

The financial projections are illustrative and built from an integrated three-statement model driven by explicit operating assumptions rather than assumed growth rates. Because the company is pre-launch, the projections are forward-looking estimates, not statements of expected fact.
The income statement, balance sheet, cash-flow statement, debt schedule, capital-expenditure schedule and working-capital schedule are internally consistent; the balance sheet balances in every projected period.
Market sizing draws on published industry data for the South African and global landscaping and grounds-maintenance markets, applied top-down and bottom-up; the serviceable and obtainable market are derived from the company’s specific geography, segment focus and capacity.
Competitor profiles reflect publicly observable market positioning and do not rely on proprietary or confidential information.
All figures are in South African Rand and, unless otherwise stated, in thousands (ZAR ’000). Ratios and multiples are as defined in the glossary.
The assumptions are commercially reasonable given the information available and prevailing conditions; actual results will differ, and prospective investors should undertake their own due diligence.

Prospective investors and lenders should not rely on this document as the sole basis for an investment decision and should seek their own independent financial, legal and tax advice.