Karoo Meridian – Business Plan

Investment-grade business plan for Karoo Meridian Wool & Livestock (Pty) Ltd — an R245-million raise (R155m DFI senior debt and R90m equity, with a Land Bank revolving production-credit facility alongside) to build an integrated, export-oriented Merino sheep farming, wool and lamb enterprise in South Africa, acquiring 18,000 hectares and a foundation flock of 12,000 Merino ewes and 450 elite rams, scaling to R472 million of Year-5 revenue at a 29.2% EBITDA margin, delivering a 26.9% ten-year project IRR and a 33.5% equity IRR at a 5.0× EBITDA exit for an indicative Year-10 enterprise value of R1,148 million.

Confidential Information Memorandum & Funding Proposal

Karoo Meridian

An investor-ready, export-oriented integrated Merino sheep farming enterprise for South Africa — a dual-purpose wool and lamb operation acquiring 18,000 hectares of grazing land and building a foundation flock of 12,000 Merino ewes and 450 elite rams, with shearing, feedlot and veterinary infrastructure — structured as an R245-million opportunity for development-finance institutions and equity investors.

Legal Entity

Karoo Meridian Wool & Livestock (Pty) Ltd

Location

Karoo, South Africa

Total Funding Sought

R245 million

Structure

R155m DFI senior debt + R90m equity

Year-5 Revenue

R472 million

Year-5 EBITDA Margin

29.2%

Project IRR / Equity IRR

26.9% / 33.5% (10-yr)

Flock (Yr 5) · Jobs

31,000+ sheep · 450+

Exit · Yr-10 EV

5.0× EBITDA · R1,148m

Sector

Agriculture — Merino Sheep, Wool & Lamb

The Opportunity

South African Merino wool and lamb command strong, hard-currency export demand — the country is a globally significant fine-wool producer and its greasy wool flows to premium international buyers — yet supply is fragmented and few operations combine scale, genetics and processing discipline in a single investable vehicle. Karoo Meridian captures this with an integrated, export-oriented dual-purpose Merino enterprise: acquiring 18,000 hectares of grazing land, building a foundation flock of 12,000 Merino ewes and 450 elite rams, and constructing shearing, feedlot and veterinary infrastructure to produce both fine wool and export lamb. An R245-million raise (R155 million of DFI senior debt and R90 million of equity, with a Land Bank revolving production-credit facility alongside) funds land, flock and infrastructure — scaling to R472 million of Year-5 revenue at a 29.2% EBITDA margin, growing the flock beyond 31,000 sheep and supporting more than 450 direct jobs — delivering a 26.9% ten-year project IRR and a 33.5% equity IRR at a conservative 5.0× EBITDA exit, for an indicative Year-10 enterprise value of R1,148 million.

Plan Contents

This investor-grade business plan is organised into the sections below. Each section is a dedicated page — select any to explore the full detail.

Important Notice & Disclaimer

This confidential information memorandum (the “Memorandum”) has been
prepared by Karoo Meridian Wool & Livestock (Pty) Ltd (“Karoo
Meridian” or the “Company”) solely for the purpose of providing
prospective funders and investors with information regarding the
Company’s proposed integrated Merino sheep farming, wool and lamb export
enterprise. It is furnished on a strictly confidential basis to a
limited number of sophisticated institutional recipients and may not be
reproduced, distributed or disclosed, in whole or in part, without the
prior written consent of the Company.

This Memorandum does not constitute an offer to sell or a
solicitation of an offer to purchase securities in any jurisdiction, nor
does it constitute financial advice as contemplated in the Financial
Advisory and Intermediary Services Act, 37 of 2002. Prospective
investors should conduct their own independent due diligence and obtain
independent legal, tax, technical, veterinary, agronomic and financial
advice before making any investment decision.

The financial projections contained herein are forward-looking
statements based on assumptions concerning wool prices, lamb and mutton
prices, lambing percentages, veld carrying capacity, rainfall, exchange
rates, interest rates and export market access that are inherently
uncertain. Livestock enterprises are exposed to drought, disease
(including foot-and-mouth disease events that have historically
disrupted South African wool exports to China), predation, stock theft
and commodity price cycles. Actual results may differ materially from
those projected. Where this Memorandum identifies analytical weaknesses
in the sponsor case — including sub-1.0x debt service cover during the
ramp-up period, a R20 million unallocated portion of the capital stack,
and reliance on terminal exit values — these disclosures are made
deliberately in the interests of balanced presentation.

Figures are presented in South African Rand (ZAR). “m” denotes
millions. Certain totals may not cast exactly due to rounding. Industry
statistics are drawn from public sources including Cape Wools SA, the
Red Meat Industry Services (RMIS), the Bureau for Food and Agricultural
Policy (BFAP), the National Agricultural Marketing Council (NAMC) and
the Department of Agriculture, Land Reform and Rural Development
(DALRRD), and are believed reliable but are not independently
verified.

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 Meridian Wool & Livestock (Pty) Ltd.