HarmonyBridge Children’s Health & Rehabilitation Centres Business Plan — Appendices

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Appendices

Appendix A — Centre rollout & capacity

Year 1

Year 2

Year 3

Year 4

Year 5

Centres open

1

2

3

4

5

Beds

120

240

360

480

600

Bed occupancy

62%

68%

74%

80%

86%

Admissions

4,200

7,467

11,667

17,733

25,667

Therapy sessions

9,818

17,455

27,273

41,455

60,000

Revenue per centre (R m)

180

160

167

190

220

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

Year 1

Year 2

Year 3

Year 4

Year 5

Depreciation

33

53

74

95

117

Gross PP&E

565

905

1,250

1,600

1,955

Accumulated depreciation

33

86

160

255

372

Interest expense

17

49

78

96

99

Debt (closing)

300

550

800

870

850

Taxation

0

0

0

0

3

Appendix C — Revenue by source (R m)

Year 1

Year 2

Year 3

Year 4

Year 5

Medical-aid payments

72

128

200

304

440

Government contracts

36

64

100

152

220

Private patients

27

48

75

114

165

Home healthcare

14

26

40

61

88

Corporate & occupational

9

16

25

38

55

Equipment rental

7

13

20

30

44

Training academy

5

10

15

23

33

Research grants

4

6

10

15

22

Donations & CSI

5

10

15

23

33

Total revenue

180

320

500

760

1,100

Appendix D — Key assumptions register

Assumption

Value

Centres (5-yr / 10-yr)

5 / 10 (nine provinces)

Revenue outlook

R180m → R1,100m (sponsor)

EBITDA margin

8% → 25% (sponsor)

Flagship / 5-yr programme

R700m / ~R2.0bn

Funding

Equity R1.3bn / Debt R1.05bn

Cost of debt / tax

11.5% / 27% with loss cap

Working capital

~12% of revenue

Exit

10.5x EV/EBITDA (8–15x tested)

Combined-stress IRR

~-18% (ramp –20%, margin –15%, 8x exit)

Appendix E — Glossary

Term

Definition

Transitional / step-down care

Intermediate care between acute hospital and home for recovering patients.

Multidisciplinary rehabilitation

Coordinated physio, occupational, speech and other therapies.

Cerebral palsy (CP)

A group of movement disorders — the most common physical disability of childhood.

Bed occupancy

The proportion of available beds in use — a key utilisation driver.

J-curve

The pattern of early losses during a capital-intensive build before profitability.

CFADS / DSCR

Cash flow available for debt service; and CFADS divided by scheduled debt service.

Debt-service reserve

A funded reserve covering debt service during the ramp.

MOIC

Multiple of invested capital — total distributions divided by equity invested.

NHI

National Health Insurance — SA’s proposed universal health-financing reform.

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, investment advice or medical advice. All projections preserve the sponsor’s stated revenue and margin outlook and are subject to material risk, of which workforce (therapist and specialist) supply, multi-round funding, capital-intensity / J-curve, institutional-payer (medical-aid and government / NHI) and occupancy-ramp risk are the most significant.