NexaWave Fibre Networks — Projected Balance Sheet

The projected balance sheet and the network-asset and capital-structure evolution underpinning NexaWave.

NexaWave Fibre Networks Business PlanSection 20 › Projected Balance Sheet

Section 20 · Business Plan

Projected Balance Sheet

The projected balance sheet and the network-asset and capital-structure evolution underpinning NexaWave.

R million FY2027 FY2028 FY2029 FY2030 FY2031
ASSETS
Infrastructure — net book value 1 067 3 331 6 714 11 333 17 778
Working capital (net receivables) 8 31 85 180 340
Cash and cash equivalents 3 373 1 004 250 250 250
Total assets 4 447 4 366 7 049 11 763 18 368
EQUITY & LIABILITIES
Share capital 4 600 4 600 4 600 4 600 4 600
Retained earnings / (accumulated loss) (153) (234) (236) (74) 447
Total shareholder equity 4 447 4 366 4 364 4 526 5 047
Senior/DFI debt (initial raise) 2 684 6 900 6 900
Second-round infrastructure debt 337 6 422
Total equity & liabilities 4 447 4 366 7 049 11 763 18 368

The balance sheet ties to zero in every projection year (asserted
programmatically). The infrastructure NBV grows to R17.8 billion — the
dominant asset and the security base for infrastructure debt.
Accumulated losses trough at −R235.7m in FY2029 before
recovery.

Figure 15
Figure 15 — Infrastructure asset base — gross value vs net book value
Figure 16
Figure 16 — Leverage and interest cover through the build
ASSUMPTION FLAG

Leverage is the defining balance-sheet feature. Net debt / EBITDA
peaks around 5.2x (FY2030) before easing to 4.5x, and debt-to-equity
reaches 2.64x by FY2031. These are high but not abnormal for greenfield
fibre, which lenders finance against long-life, high-value physical
assets and contracted annuity cash flows rather than against earnings.
The critical protections are the R17.8bn asset security base and
interest cover holding at 2.2–2.9x. The vulnerability is timing:
leverage peaks exactly when the second-round debt is being drawn, so any
delay to that facility or shortfall in penetration compresses coverage
precisely when headroom is thinnest.

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 NexaWave Fibre Networks (Pty) Ltd.