National Recovery & Mobility Services Business Plan › Section 1 › Executive Summary

1.1 Company at a Glance

National Recovery & Mobility Services (Pty) Ltd (“NRMS”) is a
newly incorporated South African business formed to consolidate and
professionalise the country’s fragmented towing and roadside assistance
industry. NRMS will deploy a modern, technology-enabled fleet of tow
trucks and recovery vehicles across Gauteng, the Western Cape and
KwaZulu-Natal in Phase 1, scaling to a nationwide footprint by Year 5.
The Company will generate revenue predominantly from contracted
relationships with insurers, fleet operators, leasing companies and
municipal clients, supported by retail call-outs and an owned mobile
application.

South Africa’s towing industry is characterised by low formalisation,
inconsistent pricing and quality, and a dominant presence of sub-scale
informal operators. Despite this, the industry is underpinned by strong
structural demand drivers — a vehicle parc in excess of 12 million
registered vehicles, insurance penetration above 35% of the passenger
car fleet, and a logistics sector that continues to expand in line with
e-commerce and intra-Africa trade. These dynamics create a compelling
opportunity for a well-capitalised, contract-led operator to capture
disproportionate market share.

1.2 Investment Highlights

• Large and growing market — South Africa’s
  roadside assistance market is projected to grow from USD 204 million in
  2023 to approximately USD 274 million by 2030 (CAGR ~3.8%), with towing
  representing the largest revenue segment within this pool.
• Contract-driven revenue model — Over 75% of
  revenue is targeted to come from multi-year SLAs with insurers, fleet
  operators and municipalities, providing revenue predictability and
  credit-worthy counterparties.
• Asset-backed business — The fleet itself is the
  primary collateral base, and tow trucks retain >50% of purchase value
  over a typical 7-year operating life, lowering downside risk for
  lenders.
• Clear consolidation thesis — The top 10
  operators control an estimated <25% of the market, leaving
  substantial room for a formalised operator to expand both organically
  and through selective acquisitions of sub-scale regional
  players.
• Strong unit economics — Each truck is targeted
  to generate R60,000–R120,000 of monthly revenue at steady state, with
  contribution margins of 35–45% after direct costs.
• Technology as a moat — The proprietary dispatch
  platform, GPS tracking, driver mobile app and insurer client portal will
  deliver response times materially below market, supporting premium
  pricing and SLA retention.
• Multiple exit routes — Trade sale to an
  insurance group, roll-up by a logistics platform, private equity
  secondary, or a future JSE AltX listing are all live exit channels for
  this asset class.

1.3 Funding Requirement

NRMS is seeking a total capital raise of ZAR 45 million
(approximately USD 2.5 million at prevailing exchange rates). The
capital is structured to deliver the fleet and infrastructure required
to achieve 25 trucks in operation by end of Year 1, anchor insurer
contracts in Gauteng, and the working-capital base required to bridge
the natural 60–90 day receivables cycle typical of the insurance
industry. The capital structure anticipates a blend of equity and senior
asset-backed debt, as detailed in Section 11.

Figure 1.1

1.4 Financial Snapshot (5-Year Summary)

NRMS is projected to grow revenue from ZAR 12 million in Year 1 to
ZAR 95 million in Year 5, with EBITDA margin expansion from 18% to 32%
as the fleet reaches utilisation maturity and SG&A is absorbed
across a larger base. Cumulative free cash flow turns positive in Year
4, with investors reaching full payback in the final quarter of Year 4.
The plan yields a project-level internal rate of return between 28% and
35% depending on terminal-value assumptions.

Figure 1.2

1.5 Why Now

Three forces create an unusually attractive entry window for a
well-capitalised operator in 2026–2027:

• Insurance industry reform — Leading South
  African insurers are actively rationalising their towing supplier panels
  towards fewer, larger, SLA-compliant operators, with documented KPI
  scorecards. This creates space for a new entrant that can meet
  enterprise requirements on day one.
• Regulatory formalisation — Provincial
  authorities are progressively tightening permit enforcement, making
  informal and under-capitalised operators increasingly uneconomic and
  creating natural consolidation pressure.
• Technology adoption gap — Few SA operators have
  yet deployed end-to-end digital dispatch, telematics and insurer
  integration. The technology stack required to leapfrog incumbents is now
  off-the-shelf and affordable, materially lowering the barrier to
  building a differentiated platform.

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 National Recovery & Mobility Services (NRMS).