NexaWave Fibre Networks — Projected Cash Flow Statement
The projected cash-flow statement and the capital-expenditure and liquidity profile underpinning NexaWave.
Section 21 · Business Plan
Projected Cash Flow Statement
The projected cash-flow statement and the capital-expenditure and liquidity profile underpinning NexaWave.
| R million | FY2027 | FY2028 | FY2029 | FY2030 | FY2031 |
|---|---|---|---|---|---|
| EBITDA | (120) | 55 | 480 | 1 350 | 2 900 |
| Net finance costs paid | — | — | (164) | (608) | (1 259) |
| Taxation paid | — | — | — | — | (165) |
| Working-capital movement | (8) | (24) | (54) | (95) | (160) |
| Operating cash flow | (128) | 32 | 262 | 647 | 1 316 |
| Capital expenditure | (1 100) | (2 400) | (3 700) | (5 200) | (7 400) |
| Equity raised | 4 600 | — | — | — | — |
| Senior/DFI debt drawdown | — | — | 2 684 | 4 216 | — |
| Second-round debt drawdown | — | — | — | 337 | 6 084 |
| Net movement in cash | 3 373 | (2 369) | (754) | 0 | 0 |
| Closing cash balance | 3 373 | 1 004 | 250 | 250 | 250 |
The infrastructure cash-flow reality
The defining feature of a greenfield fibre build is that free
cash flow (EBITDA less capex) is negative in every single year of the
plan — cumulatively −R15.1 billion. Operating cash flow turns
positive from FY2028, but the capex programme (cumulatively R19.8
billion) dwarfs it throughout the build. The gap is bridged by R4.6
billion equity and R13.3 billion of infrastructure debt drawn across the
plan. This is normal and expected for infrastructure — value is created
by building a long-life asset, not by generating near-term cash — but it
makes the plan wholly dependent on continuous funding access. A single
missed funding window strands committed capex against deferred
revenue.
Because FCF is negative throughout, NexaWave is never self-funding
during the plan — it draws external capital every year. The equity plus
initial debt (R11.5bn) sustains the build only into FY2028; from FY2029
the ≈R7bn second-round facility is essential. If that facility is
delayed or downsized, the plan’s only levers are to slow the build
(deferring homes passed and therefore revenue) or to raise more
expensive capital. The structural mitigant is that the build is modular
— capex can be throttled route-by-route within weeks — so a funding
shock becomes a slower build rather than an insolvency, provided
covenants permit the slowdown. This modularity is the equity’s core
downside protection.
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.