Mr. Toilet — Funding Requirements & Use of Proceeds

Based on the five-year financial projections, equity investors can expect the following indicative returns:

Section 17 · Business Plan

Funding Requirements & Use of Proceeds

Based on the five-year financial projections, equity investors can expect the following indicative returns:

Funding Structure

R12,000,000

Structured as R5 million founders’ equity (41.7%) alongside a senior term loan for the balance.

Source	Amount (ZAR)	% of Total
Equity – Founding shareholders	5,600,000	43.1%
Senior term loan – Commercial bank	7,400,000	56.9%
Total Funding	13,000,000	100.0%

Principal: R7,400,000
Interest rate: Prime + 2% (estimated 13.75% per annum)
Tenure: 60 months (5 years)
Repayment: Equal monthly capital instalments of R123,333 plus accrued interest
Security: General notarial bond over movable assets (vehicles and sanitation units); cession of book debts
Covenants: Minimum debt service coverage ratio of 1.2x; maximum debt-to-equity ratio of 2.0x

Category	Amount (ZAR)	% of Total
Sanitation fleet acquisition	7,040,000	54.2%
Vehicle fleet acquisition	3,400,000	26.2%
Depot leasehold improvements	800,000	6.2%
IT systems and equipment	180,000	1.4%
Marketing launch	225,000	1.7%
Legal and registration	120,000	0.9%
Working capital reserve	1,235,000	9.5%
Total	13,000,000	100.0%

Based on the five-year financial projections, equity investors can expect the following indicative returns:

Cumulative net profit (5 years): R8,707,140
Return on initial equity investment: 155.5% over 5 years (equivalent to approximately 20.6% IRR)
Exit valuation (at 5x EBITDA): Estimated R37.3 million enterprise value by Year 5, implying an equity value of approximately R35.8 million after repayment of all debt.

These returns are indicative and subject to the risks and assumptions outlined in this business plan.

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