Lichtenburg Nut Company Business Plan — Key Performance Indicators and Management Dashboard

The volume, yield, rejection and cost indicators monitored monthly, with targets and thresholds.

Section 33 of 37

Key Performance Indicators and Management Dashboard

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Figure 1. Six metrics determine whether the plan is on track

32.1 Executive dashboard

Table 81. Executive management dashboard

#	Indicator	Definition	Frequency	Owner	FY2029 target	FY2031 target	FY2033 target
1	Capacity utilisation	Throughput equivalent as a percentage of nameplate	Weekly	Operations Manager	35%	69%	89%
2	Aflatoxin conformance	Percentage of intake lots below the 6 ppb internal action limit	Per lot	Quality Manager	96%	97%	98%
3	Batches released without deviation	Percentage of production batches passing positive release first time	Per batch	Quality Manager	97%	99%	99.5%
4	Gross margin	Gross profit as a percentage of net revenue	Monthly	Finance Director	10.8%	23.3%	25.8%
5	EBITDA margin	EBITDA as a percentage of net revenue	Monthly	Managing Director	-7.6%	8.1%	11.8%
6	Groundnut cost per kilogram of output	Raw material cost divided by finished tonnage	Monthly	Supply Chain Manager	R23.40	R25.83	R28.49
7	Contracted supply share	Percentage of kernel requirement from contracted growers	Per season	Supply Chain Manager	70%	70%	75%
8	Debtor days	Trade receivables divided by net revenue, annualised	Monthly	Finance Director	62	56	57
9	Cash conversion cycle	Debtor plus inventory less creditor days	Monthly	Finance Director	98 days	80 days	79 days
10	Revolving facility headroom	Undrawn portion of the R40 million facility at month end	Monthly	Finance Director	R8m+	R5m+	R5m+
11	Debt service cover ratio	Cash available for debt service divided by total debt service	Quarterly	Finance Director	n/a	n/a	1.28x
12	Net debt to EBITDA	Net debt divided by trailing twelve-month EBITDA	Quarterly	Finance Director	n/a	5.23x	2.00x
13	Customer concentration	Largest customer as a percentage of net revenue	Monthly	Commercial Manager	48%	31%	24%
14	Output per employee	Finished tonnes divided by direct headcount	Monthly	Operations Manager	26.8 t	37.7 t	39.0 t
15	Lost-time injury frequency rate	Injuries per million hours worked	Monthly	Operations Manager	Below 4.0	Below 3.0	Below 2.0

Indicators 2, 3 and 7 are leading indicators of the risk that most plausibly destroys the business and should be reported to the board even in periods when the financial indicators are comfortable.

32.2 Investor reporting

Monthly management accounts within fifteen business days, including the dashboard above, a rolling thirteen-week cash flow forecast and facility headroom.
Quarterly board pack with covenant compliance certificates, the risk register with movement since the prior quarter, and progress against the implementation roadmap.
Per season a raw material report covering contracted hectares, delivered tonnage, quality outcomes by grower and the resulting inventory position and cost.
Immediately notification of any product recall, any aflatoxin result above the legal limit, the loss of any customer representing more than 10% of revenue, and any actual or anticipated covenant breach.
Annually audited financial statements, a revised ten-year model, and an updated valuation.