Vitalis Group SA — Projected Statement of Cash Flows
The projected statement of cash flows — operating, investing and financing cash flows and the resulting liquidity position of the platform.
Section 18 · Business Plan
Projected Statement of Cash Flows
The projected statement of cash flows — operating, investing and financing cash flows and the resulting liquidity position of the platform.
The cash flow statement disaggregates the investment phase from the
operating-cash generation that emerges from Year 4. Cumulative free cash
burn through Year 3 of R1,438M is fully covered by the Series A raise of
R1,000M plus the Year 4 Series B raise of R600M, leaving the Company
with positive operating cash flow and a Year 5 closing cash balance of
R684M before any dividend or buy-back.
18.1 Five-Year Cash Flow Statement — Base Case
| R million | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| CASH FROM OPERATING ACTIVITIES | |||||
| Profit / (loss) before tax | (473) | (718) | (746) | (428) | 238 |
| Add: depreciation and amortisation | 78 | 112 | 136 | 148 | 158 |
| Add: finance costs (non-cash portion) | 4 | 8 | 18 | 32 | 48 |
| Working capital movements | (34) | (148) | (294) | (310) | (238) |
| Change in insurance liabilities | 88 | 354 | 742 | 900 | 954 |
| Change in reinsurance assets | (38) | (146) | (364) | (434) | (436) |
| Tax paid | 0 | 0 | 0 | 0 | (64) |
| Net cash from operating activities | (375) | (538) | (508) | (92) | 660 |
| CASH FROM INVESTING ACTIVITIES | |||||
| Capex — platform and software | (420) | (140) | (74) | (54) | (48) |
| Capex — property and equipment | (48) | (28) | (28) | (28) | (24) |
| Investment in securities (net) | (280) | (380) | (580) | (840) | (1,168) |
| Investment income received (cash) | 88 | 124 | 178 | 258 | 345 |
| Net cash from investing activities | (660) | (424) | (504) | (664) | (895) |
| CASH FROM FINANCING ACTIVITIES | |||||
| Series A equity issued | 1,450 | 0 | 0 | 0 | 0 |
| Series B equity issued | 0 | 0 | 0 | 930 | 0 |
| Subordinated debt raised | 0 | 0 | 180 | 200 | 100 |
| Banking deposits raised (Vitalis Pay) | 0 | 38 | 86 | 224 | 340 |
| Lease payments | (18) | (24) | (30) | (34) | (38) |
| Finance costs paid | (2) | (4) | (10) | (16) | (24) |
| Net cash from financing activities | 1,430 | 10 | 226 | 1,304 | 378 |
| NET CHANGE IN CASH | 395 | (952) | (786) | 548 | 143 |
| Cash opening balance | 0 | 395 | 294 | 418 | 482 |
| Reclass to investments (M-mkt) | (10) | (149) | 910 | (484) | 59 |
| Cash closing balance | 385 | 294 | 418 | 482 | 684 |
Note: The reclassification line reflects movements between
operational cash and money-market instruments held as part of the
investment portfolio. Total liquid resources (cash plus money-market)
rise from R545M at end Year 1 to R1,396M by end Year 5.
18.2 Year-5 Cash Flow Waterfall
18.3 Cumulative Cash Burn and Funding Coverage
Cumulative free cash flow through the trough year is the principal
measure of funding adequacy:
| Cumulative Position (R million) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cum. operating cash flow | (375) | (913) | (1,421) | (1,513) | (853) |
| Cum. investing cash flow | (660) | (1,084) | (1,588) | (2,252) | (3,147) |
| Cum. free cash flow (FCF) | (1,035) | (1,997) | (3,009) | (3,765) | (4,000) |
| Cum. equity injected | 1,450 | 1,450 | 1,450 | 2,380 | 2,380 |
| Cum. debt and deposits | 0 | 38 | 304 | 728 | 1,168 |
| Cum. funding coverage of FCF (x) | 1.40x | 0.75x | 0.58x | 0.83x | 0.89x |
The R1.0 Bn Series A plus a planned R600M Series B in Year 4 covers
the cumulative funding need under the base case with a 25% buffer for
adverse variance. A standby liquidity facility of R300M is being
negotiated with two domestic banks as additional protection against
unforeseen acceleration of cash burn.
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 Vitalis Group South Africa (Pty) Ltd.