VinoVista Estates — Appendices

A.1 Production Assumptions

VinoVista Estates (Pty) Ltd Business PlanSection 20 › Appendices

Section 20 · Business Plan

Appendices

A.1 Production Assumptions

Appendix A: Detailed Assumptions

A.1 Production Assumptions

Assumption Value
Total vineyard area 130 hectares planted (150 ha total)
Vine density 4,500 vines per hectare
Year 1 yield (new vines) 0 tonnes (establishment year)
Year 2 yield 60% of full yield
Full yield (from Year 3) 9–12 tonnes per hectare
Wine conversion ratio 750 litres per tonne
Bottles per tonne 1,000 bottles (750 ml)
Grape retention for estate wine (Y5) 30% of total harvest
Annual grape price escalation 5% per annum
Annual cost escalation 5.5% per annum (CPI + 0.5%)
Corporate tax rate 27% (from FY2024 onwards)
VAT rate 15%
Discount rate for NPV 14% (WACC)

A.2 Tourism Assumptions

Assumption Value
Tasting room capacity 50 guests at a time
Restaurant capacity 80 covers
Event venue capacity 200 guests
Annual visitors (Year 2) 5,000
Annual visitors (Year 5) 25,000
Average spend per tasting room visitor R350
Average restaurant cover value R450
Events per year (Year 5) 50
Average event revenue R80,000

Appendix B: Glossary of Terms

Term Definition
B-BBEE Broad-Based Black Economic Empowerment – South Africa’s transformation legislation
Brix Measurement of sugar content in grape juice; indicator of grape ripeness
CAGR Compound Annual Growth Rate
CAPEX Capital Expenditure
COGS Cost of Goods Sold
EBITDA Earnings Before Interest, Tax, Depreciation & Amortisation
EIA Environmental Impact Assessment
IFRS International Financial Reporting Standards
IPM Integrated Pest Management
IPW Integrated Production of Wine – SA’s sustainability certification
IRR Internal Rate of Return
NPV Net Present Value
PPECB Perishable Products Export Control Board
SARS South African Revenue Service
VSP Vertical Shoot Positioning – a vine training system
WIETA Wine Industry Ethical Trade Association

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