KarooPrime Capretto — Exit Strategy

The exit strategy and the value-realisation pathways available to equity investors over the planning horizon.

Section 15 · Business Plan

Exit Strategy

The exit strategy and the value-realisation pathways available to equity investors over the planning horizon.

The plan is structured to deliver attractive exit optionality for
equity investors within a five-to-seven-year horizon, underpinned by a
profitable, cash-generative, de-levered platform with a defensible
market position and demonstrable development impact.

15.1 Exit options

Strategic trade sale. Acquisition by a larger meat processor,
food group or agri-conglomerate seeking integrated, export-certified
chevon capability and an established farmer network.
Financial / private-equity sale. Sale to a growth-equity or
impact investor attracted by the cash-generative, de-levered platform
and replication runway.
Management / employee buy-out. Supported by the
producer-development trust, deepening local ownership.
Partial recapitalisation. Dividend recapitalisation or secondary
sale once steady-state cash generation is established, returning capital
while retaining upside.

15.2 Indicative valuation at exit

Applying a conservative 5.0x EV/EBITDA multiple to Year-7 EBITDA of
R230m implies an enterprise value of approximately R1,150m before the
release of working capital and net of remaining debt. This multiple is
modest for an integrated, branded, export-capable food platform with a
strong development narrative, leaving headroom for multiple expansion at
exit. The resulting base-case equity IRR is 48.0%.

Figure 15.1

Figure 15.1 — Project free cash flow and cumulative position underpinning the IRR.

Returns summary

Project IRR (base case): 35.5% • Equity IRR: 48.0% NPV @ 15.5% WACC: R367m • Phase-1 capital payback: 5.8 years Downside (import-parity maize squeeze) project IRR: 19.8% — within
the 18–26% feasibility reference band.

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 KarooPrime Capretto (Pty) Ltd.