Umthombo Springs Business Plan — Important Notice & Disclaimer

This business plan (the “Plan”) has been prepared by Umthombo Springs (Pty) Ltd (“Umthombo” or the “Company”) to provide prospective venture and growth…

Important Notice & Disclaimer

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This business plan (the “Plan”) has been prepared by Umthombo Springs (Pty) Ltd (“Umthombo” or the “Company”) to provide prospective venture and growth equity investors with information about the Company and its proposed natural spring water bottling and export enterprise. It is illustrative and does not constitute an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction.

The Company’s volumes, unit economics, revenue, cost of goods, operating expenses, EBITDA, depreciation, finance cost and net profit are preserved as prepared by the directors. The capitalisation table through both funding rounds, investor returns at a range of exit multiples, the adequacy of the Series A round to month 24, the position without Series B, and the exposure to input cost escalation have been independently re-derived by the analyst and are presented in Sections 15 through 19.

Financial projections are forward-looking statements based on assumptions the directors consider reasonable at the date of preparation. The business is exposed to water resource risk, commodity input costs, exchange rate movement, freight cost volatility and the regulatory requirements of multiple export jurisdictions. Actual results may differ materially. Spring yield, water use licensing, product pricing, freight rates and certification requirements must be independently verified in due diligence.

This analysis identifies several matters bearing directly on the investment decision, principally the sufficiency of the Series A round for the twenty-four months before Series B, the position of the business if Series B is not raised, the exit multiple on which the headline return depends, and the funding of the community trust’s anti-dilution protection. These are set out plainly rather than smoothed, because a venture investment committee will test each of them.

Confidentiality: this document is provided on a strictly confidential basis and may not be reproduced or distributed without the prior written consent of the Company.

NoteOn the figures in this plan

The Company’s model reconciles to an unusual standard. Revenue, cost of goods and gross profit in every year of the projection are reproduced exactly by multiplying the stated channel volumes by the stated per-litre unit economics, the unit table is not an illustration bolted onto the projections, it is the projections. The capitalisation table reconciles to precisely 100% across both rounds: Series A at 31.5%, Series B at 30.8%, founders at 30.8% and the option pool at 6.9%. The stated returns of 4.61 times and 35.7% to Series A, and 2.25 times and 31.1% to Series B, are reproduced within rounding at the disclosed 12 times exit multiple. The findings that follow concern funding adequacy and the assumptions on which the headline return rests, not the integrity of the arithmetic.