HealthPlus Retail Group — Appendices
Supporting detail and reference material underpinning the HealthPlus Retail Group business plan and financial model.
Section 15 · Business Plan
Appendices
Supporting detail and reference material underpinning the HealthPlus Retail Group business plan and financial model.
Appendix A — Detailed Modelling Assumptions
The financial model incorporates approximately 220 input assumptions
grouped across ten driver categories. The most material assumptions,
with source benchmarks, are documented in the data room file
02_Financial_Model.xlsx (sheet: Assumptions). A condensed reference is
provided below.
| Driver | Base Assumption | Source / Benchmark |
|---|---|---|
| Pharmacy script volume growth | 3.8% p.a. | Council for Medical Schemes; SAPC data |
| Front-shop retail inflation | CPI + 1.4% | StatsSA; Clicks/Dis-Chem disclosed comp data |
| Beauty & wellness category growth | 7.2% p.a. | Euromonitor SA personal care |
| Private label premium to brand GM | +18 ppt | International peer benchmarks |
| Average pharmacist cost (loaded) | R 920k | PSSA salary survey 2025 |
| Store fit-out capex (Metro) | R 4.2M | Internal QS estimate; 3 vendor quotes |
| Working capital days (Y5 mature) | 52 days | Clicks/Dis-Chem disclosed working capital |
| Lease cost as % of revenue | 3.8% (Y5) | Listed retailer disclosed rentals |
| Marketing spend as % of revenue | 3.5% (Y5) | International CPG/retail benchmarks |
| Effective tax rate (mature) | 27% | SA corporate income tax rate |
Table A1 — Headline modelling assumptions and sources
Appendix B — Regulatory Framework
HealthPlus operates within a multi-layered regulatory framework. The
most material instruments are summarised below.
| Regulator / Statute | Scope | Compliance Approach |
|---|---|---|
| South African Pharmacy Council (SAPC) | Pharmacy ownership, dispensing licensing | Dedicated compliance officer; quarterly internal audits |
| SAHPRA | Medicine registration, manufacturing, wholesale | Pharmacovigilance system from Y1; SAHPRA-licensed wholesale arm |
| Medicines and Related Substances Act 101 of 1965 | Single Exit Price (SEP), dispensing fees | SEP database integrated to POS; quarterly reconciliation |
| POPI Act | Personal data including health information | Information Officer appointed; POPIA-aligned data ops; quarterly third-party audit |
| Companies Act 71 of 2008 | Corporate governance, financial reporting | King IV-aligned governance; Companies Tribunal compliance |
| B-BBEE Codes (DTIC) | Transformation | Verified annually by accredited agency |
| Consumer Protection Act 68 of 2008 | Retail consumer rights | Returns, recall and complaints protocol embedded in POS |
| Competition Act 89 of 1998 | Mergers, anti-competitive conduct | Pre-clearance for any acquisition > thresholds; trade association protocols |
| NHI Act 20 of 2024 | Future single-payer healthcare | Active engagement via PSSA; phased compliance |
Table B1 — Principal regulatory framework
Appendix C — Data Room Index
A virtual data room is established at financial close, containing all
materials required for legal, financial, commercial and operational due
diligence. Access is granted through a secure platform with audit trail
and is structured as follows:
| Folder | Contents |
|---|---|
| 01 Corporate | CIPC documents, MOI, shareholders’ agreement, board minutes, organogram |
| 02 Financial | Five-year model (Excel), audited statements (where available), tax certificates |
| 03 Commercial | Market analysis, customer research, pricing strategy, supplier contracts |
| 04 Operations | Store list, lease summary, DC plans, manufacturing facility plans |
| 05 Technology | IT architecture, vendor contracts, cybersecurity assessment |
| 06 People | Executive CVs, employment contracts, HR policies, B-BBEE certificates |
| 07 Legal & Regulatory | SAPC/SAHPRA licences, material contracts, IP register, litigation register |
| 08 ESG | ESG policy, climate risk assessment, impact metrics, social audits |
| 09 Insurance | Policies, broker reports, claims history |
| 10 Q&A | Investor questions and management responses (live) |
Table C1 — Data room structure
Appendix D — Glossary of Key Terms
| Term | Definition |
|---|---|
| B-BBEE | Broad-Based Black Economic Empowerment |
| CAC | Customer Acquisition Cost |
| CAGR | Compound Annual Growth Rate |
| Capex | Capital expenditure |
| DC | Distribution centre |
| DFI | Development Finance Institution |
| EBITDA | Earnings before interest, taxes, depreciation and amortisation |
| ERP | Enterprise Resource Planning system |
| FCF | Free Cash Flow |
| ICPA | Independent Community Pharmacy Association |
| IRR | Internal Rate of Return |
| JIBAR | Johannesburg Interbank Average Rate |
| KVI | Known-Value Item (price-sensitive SKU) |
| LTIP | Long-Term Incentive Plan |
| LTV | Customer Lifetime Value |
| NHI | National Health Insurance |
| ND/EBITDA | Net Debt to EBITDA leverage ratio |
| PIK | Payment-in-Kind interest |
| POPIA | Protection of Personal Information Act |
| Private label | Products manufactured under retailer-owned brand |
| PSSA | Pharmaceutical Society of South Africa |
| Rx | Prescription medicine |
| SAHPRA | South African Health Products Regulatory Authority |
| SAPC | South African Pharmacy Council |
| SASRIA | South African Special Risks Insurance Association |
| SEP | Single Exit Price (regulated medicine pricing) |
| SOM | Serviceable Obtainable Market |
| TAM / SAM | Total / Serviceable Addressable Market |
| WACC | Weighted Average Cost of Capital |
Table D1 — Glossary
Appendix E — Important Notice
This document is the property of HealthPlus Retail Group (Pty) Ltd
(“the Company”) and has been prepared solely for the use of named
recipients in the context of evaluating a potential investment in the
Company. It is not an offer to sell, or a solicitation of an offer to
buy, any securities. Any decision to invest should be made only after
independent professional advice and on the basis of the Company’s
definitive transaction documentation.
The information contained herein includes forward-looking statements
that reflect the Company’s current expectations regarding future events.
These statements are subject to risks and uncertainties, including those
described in Section 12, that could cause actual results to differ
materially from those projected. Recipients should not place undue
reliance on forward-looking statements.
Recipients are reminded that this document and its contents are
strictly confidential. Reproduction, distribution or disclosure to any
third party without the prior written consent of the Company is
prohibited. By accepting this document, the recipient agrees to be bound
by these confidentiality undertakings.
Contact
HealthPlus Retail Group (Pty) Ltd
Investor Relations
Email: investors@healthplusgroup.co.za
Telephone: +27 (0)11 000 0000
Registered office: Sandton, Johannesburg, South Africa
HealthPlus Retail Group represents a once-in-a-generation opportunity
to build the third national pharmacy retail chain in South Africa,
capturing structurally underserved demand in chronic care, township
healthcare access, and integrated wellness — at a scale and unit
economics that we believe will deliver investment-grade equity returns
with measurable, additionality-positive social impact. We invite you to
engage with the detailed opportunity through our data room.
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 HealthPlus Retail Group (Pty) Ltd.