TitanForge — Projected Balance Sheet

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

TitanForge Business PlanSection 22 › Projected Balance Sheet

Section 22 · Business Plan

Projected Balance Sheet

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

The projected balance sheet is built from the opening position (PPE
R24bn, cash R2bn, debt R6bn, equity R20bn) and rolls every account
forward: PPE by capex less depreciation, debt by draws less
amortisation, equity by injections plus retained earnings less
dividends. It ties to zero in every year by construction and by
assertion.

R billion Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Property, plant & equipment 32.1 50.2 73.0 90.2 99.6 100.7 98.4 96.7 95.5 94.8
Net working capital 2.0 2.4 3.1 4.2 5.7 7.4 9.4 11.5 13.6 15.8
Cash & investments 3.7 5.5 6.4 5.7 6.6 9.9 13.6 19.3 27.3 36.9
Total assets 37.8 58.1 82.5 100.1 111.9 118.0 121.4 127.6 136.4 147.5
Debt 10.3 18.6 27.7 32.4 32.8 28.8 23.9 19.0 14.1 9.2
Paid-in equity 25.7 35.9 49.0 59.4 65.9 68.0 68.0 68.0 68.0 68.0
Retained earnings 1.8 3.6 5.8 8.3 13.1 21.2 29.5 40.6 54.4 70.3
Total equity 27.5 39.6 54.8 67.7 79.1 89.2 97.5 108.6 122.4 138.3
Debt + equity 37.8 58.1 82.5 100.1 111.9 118.0 121.4 127.6 136.4 147.5
Balance check 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net debt / EBITDA (x) 1.27 1.92 2.30 1.98 1.32 0.70 0.29 -0.01 -0.26 -0.47
Gearing (debt/capital) 27% 32% 34% 32% 29% 24% 20% 15% 10% 6%
Figure 16
Figure 16: Balance sheet build: assets versus funding
Analyst finding: reconciling to the sponsor’s Year 10
balance sheet

The sponsor presents Year 10 total assets of R205bn (PPE R155bn, cash
R18bn) against debt of R55bn and equity of R132bn. The independent
balance sheet reaches R147.5bn of assets (PPE R94.8bn, NWC R15.8bn, cash
R36.9bn). The R60bn PPE difference cannot be produced by the stated
R92bn programme: it would require either near-zero depreciation over the
decade or roughly R60bn of additional capex that appears nowhere in the
funding plan. Investors should treat the sponsor balance sheet as
directional and rely on the independently derived statement for covenant
and collateral analysis.

Figure 17
Figure 17: Net debt / EBITDA trajectory: peak 2.30x in Year 3, net cash from Year 8

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 TitanForge Resources & Infrastructure Holdings.