Karoo Crown Beef Group — Projected Cash Flow Statement
The projected cash flow statement over the plan horizon — operating, investing and financing cash flows, the capital-drawdown profile and the free cash flow to equity.
Section 16 · Business Plan
Projected Cash Flow Statement
The projected cash flow statement over the plan horizon — operating, investing and financing cash flows, the capital-drawdown profile and the free cash flow to equity.
The projected cash flow statement below uses the indirect method,
reconciling net profit after tax to net cash flow. All values are in ZAR
millions. Year 1 cash flow reflects the deployment of all funding
tranches and the bulk of capital expenditure; net of capex, the Group
ends Year 1 with ZAR 86m of cash as a working-capital buffer for the
ramp-up period.
| Cash Flow (ZAR millions) | Y1 2026 | Y2 2027 | Y3 2028 | Y4 2029 | Y5 2030 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Net profit after tax | (134) | (17) | 79 | 169 | 248 |
| Add: Depreciation & amortisation | 58 | 64 | 68 | 72 | 75 |
| Add: Finance costs (net) | 38 | 42 | 42 | 40 | 36 |
| Add: Tax expense (non-cash portion) | 0 | 0 | 13 | 31 | 43 |
| Working capital movements | |||||
| (Increase) in inventory | (68) | (30) | (44) | (34) | (22) |
| (Increase) in trade receivables | (90) | (72) | (80) | (64) | (48) |
| Increase in trade payables | 96 | 72 | 76 | 70 | 54 |
| Net cash from operating activities | (100) | 59 | 154 | 284 | 386 |
| INVESTING ACTIVITIES | |||||
| Capital expenditure (initial build) | (750) | (50) | 0 | 0 | 0 |
| Maintenance capex | 0 | (8) | (35) | (47) | (56) |
| Working-capital advances to producers | (12) | (8) | (6) | (4) | (2) |
| Net cash from investing activities | (762) | (66) | (41) | (51) | (58) |
| FINANCING ACTIVITIES | |||||
| Equity capital contributions | 435 | 0 | 0 | 0 | 0 |
| Senior debt drawn | 380 | 0 | 0 | 0 | 0 |
| Mezzanine drawn | 95 | 0 | 0 | 0 | 0 |
| Grants & DTIC incentives | 49 | 0 | 0 | 0 | 0 |
| Senior debt repayments | 0 | (38) | (38) | (57) | (58) |
| Mezzanine PIK / cash interest | (14) | (14) | (14) | (33) | (30) |
| Finance costs paid | (38) | (42) | (42) | (40) | (36) |
| Dividends paid | 0 | 0 | 0 | (20) | (30) |
| Net cash from financing activities | 907 | (94) | (94) | (150) | (154) |
| Net change in cash | 45 | (101) | 19 | 83 | 174 |
| Cash, beginning of year | 0 | 86 | 92 | 138 | 232 |
| Cash, end of year | 86 | 92 | 138 | 232 | 412 |
Free cash flow (operating cash flow less maintenance capex) turns
positive in Year 2 and accumulates to a cumulative total of ZAR 612m
over Years 2-5. This cash generation comfortably supports the senior
debt amortisation schedule (which totals ZAR 191m of principal repayment
over the same period) and provides the firepower for initial dividend
distribution from Year 4 onwards while building strategic balance-sheet
reserves for Phase II.
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 Karoo Crown Beef Group (Pty) Ltd.