PrimePork Foods Business Plan › Section 16 › Appendices

Appendix A — Key Ratio Dashboard

Appendix B — Senior Debt Amortisation Schedules

IDC senior facility — R145m, 11.25%, 10-year, 1-year principal
grace

DBSA development loan — R95m, 10.75%, 10-year, 1-year principal
grace

Appendix C — Year 1 Quarterly Ramp Profile

Year 1 revenue of R245m is back-loaded: plant commissioning and
certification run through the first three quarters, and processing only
reaches steady cadence late in the year. The quarterly profile
illustrates the working-capital reality behind the annual figure and the
case for the revolver and debt-service reserve.

Appendix D — Downside Scenario (Five-Year P&L)

The downside compounds a ramp shortfall (revenue reaching 75% of
plan) with an ASF/FMD-driven carcass-supply disruption and margin
compression: revenue −25% against base each year, EBITDA compressed by
~35% through operating deleverage. The revolver requirement roughly
doubles and the debt-service reserve is fully consumed through Year
3.

Appendix E — Assumptions Register

Every material assumption, its basis and sensitivity. Assumptions
marked ◆ are sponsor anchors preserved exactly; all others are
analyst-derived.

Appendix F — Combined-Shock EBITDA-Margin Matrix

Single-variable sensitivities understate processing risk because
throughput and margin shocks correlate. The matrix shows Year 3 EBITDA
(base R156m — the first covenant-test year) under simultaneous
throughput (utilisation) and gross-margin shocks. Cells sustaining DSCR
≥1.30x are viable without support (Year 3 base DSCR 1.60x).

Reading: the first covenant test survives modest single shocks but
tightens under combined throughput-and-margin stress — the profile of a
disease-driven supply disruption coinciding with retail margin pressure.
This is the quantitative case for the funded debt-service reserve, the
covenant holiday to Year 3 and contracted offtake floors. From Year 4
the widening cover (2.88x) absorbs these shocks comfortably; the
vulnerability is strictly a ramp-period phenomenon.

Appendix G — Sources

• SAPPO — Pork Industry Quarterly (Q1 & Q2 2025): carcass price
  ~R31.80/kg; slaughter trends; production/consumption
• SAPPO / Farmer’s Weekly (2026) — five ASF and seventeen FMD
  commercial outbreaks; ~R9,500/sow loss per FMD event; 12+ week abattoir
  delay; welfare code and 2032 gestation-crate phase-out
• BFAP — Trajectories of SA’s Red Meat Industry (2025): pork
  +3.2%/yr per-capita to 5.4kg; 393kt consumption by 2035; feed-cost
  outlook
• RMAA — pork carcass price series (excluding sows)
• Stats SA / TradeDATA — meat retail price indices; pork’s lowest
  red-meat inflation 2025–2026
• BFAP — Pork Value Chain Study: 7:3 baconer/porker ratio; ~78kg
  slaughter mass; ~10% informal undercount
• NAMC — pork consumption and consumer-education analysis
• Best Pork and integrated-processor public sources — operating
  model, Danish-European deboning, export certification informing the
  operating architecture

Appendix H — Debt-Service Reserve Mechanics

The reserve resolves the ramp-period DSCR problem in Section 12.5.
Approximately R55 million of the equity subscription is escrowed at
close in a lender-controlled account and released against the senior
debt-service bill through Years 1–2; CFADS shortfalls draw the reserve,
surpluses stay in operations. The schedule shows the reserve covering
the ramp until organic CFADS takes over from Year 3.

Half-yearly figures are illustrative pro-rations of the annual model.
The design intent is auditable simplicity: lenders see a funded,
controlled account rather than a projection, and equity sees the
residual released once the Year 3 covenant test is passed. From Year 3,
CFADS of R58.4m against total debt service of R36.5m restores cover to
1.60x at the first unaided test, consistent with Figure 18.

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