Karoo Rabbit Protein — Appendices

Supporting appendices — the detailed cost breakdown, the assumptions register, the operational metrics, the capital-expenditure schedule, the risk register and the glossary and information sources underpinning the Karoo Rabbit Protein business plan and financial model.

Karoo Rabbit Protein Business PlanSection 16 › Appendices

Section 16 · Business Plan

Appendices

Supporting appendices — the detailed cost breakdown, the assumptions register, the operational metrics, the capital-expenditure schedule, the risk register and the glossary and information sources underpinning the Karoo Rabbit Protein business plan and financial model.

Appendix A — Detailed Cost Breakdown

Cost of Goods Sold by Component

R million FY27 FY28 FY29 FY30 FY31
Live-animal offtake 16.3 39.7 76.6 118 167
Processing 3.0 7.2 13.9 21.5 30.3
Packaging 1.6 4.0 7.6 11.7 16.6
Breeding inputs 1.4 2.7 4.5 6.2 8.0
Grower-services cost 3.0 7.1 13.9 21.4 29.5
By-product cost 0.4 1.0 1.9 3.0 4.2
Total cost of goods sold 25.7 61.6 119 182 255

Live-animal offtake — the contracted payment to growers — is the
dominant cost component throughout, which is the structural driver of
the blended gross margin discussed in Sections 5 and 13.

Operating Expenses by Component

R million FY27 FY28 FY29 FY30 FY31
Staff 10.0 14.7 19.8 25.5 30.4
Logistics & distribution 2.1 5.1 9.9 15.2 21.4
Sales & marketing 2.6 5.1 7.9 10.7 12.9
Administration 6.0 8.4 11.0 13.9 15.8
Grower development 3.0 4.2 5.5 6.9 8.5
Research & development 1.5 2.1 2.8 3.5 4.3
Compliance & accreditation 1.5 2.1 2.8 3.5 4.3
Total operating expenses 26.7 41.8 59.8 79.1 97.5

Appendix B — Assumptions Register

Assumption Basis / value
Planning horizon Five years, FY2027–FY2031
Inflation (cost/opex) 5.0% per year
Selling-price escalation 4.5% per year (below inflation, conservative)
Corporate tax rate 27%, with assessed-loss carry-forward
Senior term debt Prime + 1.5% ≈ 12.0%; 10-year tenor; 2-year capital moratorium
Working-capital facility Prime + 3.0% ≈ 13.5%; revolving
Prime rate (assumed) 10.50% (repo 7.00%)
USD / ZAR R16.40
Dressing yield ≈54% (≈1.25 kg sellable meat per rabbit)
Grow-out cycle 11–12 weeks to ≈2.2–2.5 kg
Feed-conversion ratio ≈2.5–3.5 : 1
Lifecycle feed per rabbit ≈9 kg
Doe productivity ≈40 marketable offspring per doe per year
Doe productive life 24–36 months
Fresh / chilled price (FY27) R150 per kg
Frozen price (FY27) R112 per kg
Value-added price (FY27) R205 per kg
Export price (FY27) R122 per kg
Processing capacity (FY27→FY31) 600,000 → 1,800,000 head per year
Contract farms (FY27→FY31) 40 → 520

Appendix C — Operational Metrics

Metric FY27 FY28 FY29 FY30 FY31
Rabbits processed 185,000 430,000 790,000 1,160,000 1,560,000
Processing capacity 600,000 900,000 1,200,000 1,500,000 1,800,000
Capacity utilisation 30.8% 47.8% 65.8% 77.3% 86.7%
Sellable meat (tons) 231.2 537.5 987.5 1450.0 1950.0
Doe-equivalents 3,500 8,000 15,000 22,000 30,000
Contract farms 40 110 240 380 520

Meat Sales Mix (% of meat revenue)

Channel FY27 FY28 FY29 FY30 FY31
Fresh / chilled 46% 42% 38% 35% 33%
Frozen (everyday) 30% 28% 26% 24% 22%
Value-added 18% 22% 25% 27% 29%
Export 6% 8% 11% 14% 16%

Appendix D — Capital Expenditure Schedule

Capital deployment by category and year (R million). Year 0
represents the pre-commissioning build; Years 1–5 represent expansion
and maintenance capital aligned to the production ramp.

R million Y0 Y1 Y2 Y3 Y4 Y5
Land & site works 18.0
Processing facility 30.0 6.0 6.0 4.0
Central feed mill 14.0 3.0 5.0
Nucleus & genetics 14.0 3.0 3.0 2.0
Cold chain & logistics 10.0 3.0 4.0 3.0
Grower network support 7.0 3.0 4.0 2.0
Packaging & equipment 5.0 1.5 1.5
IT / ERP / traceability 4.0 1.0
Total capital programme 102.0 20.5 23.5 11.0 0.0 0.0

The total core build programme is approximately R157 million (Year 0
plus early expansion), with the balance of the R169 million total
comprising maintenance and expansion capital in the later years. Capital
is concentrated in the owned, defensible nodes — processing, genetics,
feed milling and cold chain.

Appendix E — Risk Register

Risk Likelihood Impact Mitigation
Consumer adoption slower than planned Medium High Category education, dual-brand strategy, chef/retail partnerships, portioned formats
Channel / offtake failure Low High Owned HACCP processing and guaranteed grower offtake
Disease incursion (myxomatosis / VHD) Low High Controlled genetics & feed, accredited housing, veterinary oversight, movement controls
Grower under-performance / attrition Medium Medium Training, standardised housing, extension, phased recruitment, contract terms
Feed-price inflation High Medium Owned feed mill, conservative escalation, mix shift to higher-margin product
Selling-price pressure Medium High Premium positioning, value-added mix, conservative price assumptions
Cost or schedule overrun on build Medium Medium Phased capex, contingency, experienced project management
Funding shortfall / cost of capital Low High Blended structure, capital moratorium, WC headroom, conservative gearing
Regulatory / accreditation delay Medium Medium Dedicated compliance function; early engagement with authorities
Macro shock (rates, FX, fuel, feed) High Medium Conservative macro assumptions, local sourcing, limited early export reliance
Key-person dependency Medium Medium Functional depth across divisions, documented systems, succession planning

Appendix F — Glossary & Information Sources

Glossary

Term Definition
B-BBEE Broad-Based Black Economic Empowerment — South Africa’s transformation framework
DFI Development Finance Institution
Dressing yield Proportion of live weight recovered as sellable carcass meat
DSCR Debt-Service Cover Ratio — cash available relative to debt service
EBITDA Earnings before interest, tax, depreciation and amortisation
FCR Feed-Conversion Ratio — feed input per unit of weight gain
HACCP Hazard Analysis and Critical Control Points — food-safety management system
IRR Internal Rate of Return
NPV Net Present Value
VHD Viral / rabbit haemorrhagic disease
Value-added Processed products (e.g. sausages, paté, ready-to-cook) earning higher realisation

Information Sources

Market and industry context in this plan draws on publicly available
research and reporting, including global rabbit-meat market studies
(industry market-research publishers), South African protein-market and
consumption data, the National Agricultural Marketing Council’s work on
the domestic rabbit-meat opportunity, draft rabbit-meat regulations
under the Meat Safety Act No. 40 of 2000, FAO guidance on rabbit
production efficiency, and current South African macroeconomic
indicators (repo and prime rates, inflation and growth forecasts).
Production parameters reflect documented South African and international
rabbit-farming benchmarks. All figures should be independently verified
by the recipient’s advisers.

Prepared by Karoo Rabbit Protein (Pty) Ltd — Strictly Private
& Confidential — June 2026

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 Rabbit Protein (Pty) Ltd.