XSMLT Nexus Logistics — Appendices

Supporting appendices - the key ratio dashboard, the senior-debt amortisation schedules, the Year-1 quarterly ramp profile, the downside scenario, the assumptions register, the combined-shock DSCR matrix and the debt-service-reserve mechanics underpinning the XSMLT Nexus business plan and financial model.

XSMLT Nexus Logistics Business PlanSection 16 › Appendices

Section 16 · Business Plan

Appendices

Supporting appendices – the key ratio dashboard, the senior-debt amortisation schedules, the Year-1 quarterly ramp profile, the downside scenario, the assumptions register, the combined-shock DSCR matrix and the debt-service-reserve mechanics underpinning the XSMLT Nexus business plan and financial model.

Appendix A — Key Ratio Dashboard

Ratio Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Revenue growth % 88 67 52 39 14 10 7 5 4
EBITDA margin % 13.8 18.0 22.6 23.9 27.0 27.2 27.5 27.7 27.8 27.8
NPAT margin % -18.1 -3.8 6.4 9.2 13.2 14.2 15.0 16.6 17.3 17.6
DSCR (x) -0.18 0.67 1.31 1.69 2.47 3.21 3.95 5.33 11.60 19.95
Net debt / EBITDA (x) 6.8 3.9 2.0 1.1 0.4 net cash net cash net cash net cash net cash
Debt / equity (x) 1.89 2.69 2.05 1.16 0.57 0.27 0.12 0.04 0.01 0.00
ROE % -31.2 -13.9 28.4 38.1 43.4 34.7 28.7 25.4 21.7 18.7
ROA % -10.8 -3.8 9.3 17.6 27.6 27.4 25.7 24.5 21.4 18.7
Interest cover (EBITDA/int) 1.1 2.2 3.8 5.7 9.9 15.1 23.4 41.8 98.7 265.3
Capex / revenue % 156 23 13 9 5 4 4 3 3 3

Appendix B — Senior Debt Amortisation Schedules

IDC senior facility — R280m, 11.50%, 8-year, 1-year principal grace

  Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Opening 280 280 240 200 160 120 80 40 0 0
Interest 32.2 32.2 27.6 23.0 18.4 13.8 9.2 4.6 0.0 0.0
Principal 40.0 40.0 40.0 40.0 40.0 40.0 40.0
Closing 280 240 200 160 120 80 40 0 0 0

DBSA development loan — R180m, 10.75%, 10-year, 1-year principal grace

  Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Opening 180 180 160 140 120 100 80 60 40 20
Interest 19.4 19.4 17.2 15.1 12.9 10.8 8.6 6.5 4.3 2.1
Principal 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0
Closing 180 160 140 120 100 80 60 40 20 0

Fleet instalment finance — asset-backed, 12.25%, 5-year tranches

  Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Drawdowns 105.3 96.5 102.4 87.8
Interest 12.9 24.7 34.7 40.5 33.0 23.4 13.8 6.8 2.1
Principal 21.1 40.4 60.8 78.4 78.4 57.3 38.0 17.6
Closing balance 105 181 243 270 191 113 56 18

Appendix C — Year 1 Quarterly Ramp Profile

Year 1 revenue of R420m is back-loaded: fleet arrives and depots
commission through the first three quarters, and the SA–Zambia corridor
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.

R m Q1 Q2 Q3 Q4
Revenue 42 78 128 172
Cash opex (58) (74) (96) (118)
EBITDA (16) 4 32 54
Fleet & depot capex (220) (180) (140) (115)

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

The downside compounds a prolonged corridor disruption (Kasumbalesa
closure plus a Lobito share-shift reducing productive trips), fuel-cost
escalation without full pass-through, and rate softening: revenue −22%
against base each year, with operating leverage compressing EBITDA by
~40%. The revolver and fleet-finance requirements roughly double; the
debt-service reserve is fully consumed through Year 3.

R m Y1 Y2 Y3 Y4 Y5
Revenue (−22%) 328 616 1,030 1,568 2,184
EBITDA (−40%) 35 85 179 288 454
EBITDA margin % 10.6 13.8 17.4 18.4 20.8
Depreciation (83) (107) (130) (154) (166)
Interest (revolver 2x) (64) (86) (94) (80) (58)
Profit before tax (112) (108) (45) 54 230
Taxation (3) (13)
NPAT (112) (108) (45) 51 217
Cumulative NPAT (112) (221) (266) (215) 2
Downside reading

In the downside the enterprise remains a going concern but is
loss-making into Year 3 and wholly dependent on the debt-service reserve
and lender forbearance through the ramp. Cumulative losses trough near
R300m against R320m of equity — a thin margin that argues for the larger
equity/reserve buffer recommended in Section 13, and for take-or-pay
contract floors before drawdown. This is the case lenders should size
security and reserves against.

Appendix E — Assumptions Register

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

# Assumption Value Basis
1 Revenue Y1–Y5 ◆ R420m → R2,800m Sponsor; SOM cross-check §3.4
2 EBITDA Y1–Y5 ◆ R58m → R756m Sponsor; margin 13.8%→27.0%
3 Revenue growth Y6–Y10 14% → 4% Analyst maturity glide
4 Steady-state EBITDA margin 27.2–27.8% Within sponsor 22–31% band
5 Initial fleet ◆ 220 combinations Sponsor; R420m fleet budget
6 Year 5 fleet ◆ 520+ combinations Sponsor
7 Revenue per combo (Y5) ~R5.4m Utilisation × premium mining rates
8 Capex programme ◆ R655m + R125m WC Sponsor §6.5
9 Ongoing capex R115–180m p.a. Fleet growth + 7-yr replacement
10 Fleet depreciation 7-year straight line Heavy high-utilisation long-haul
11 Infra / warehousing dep. 20-year Analyst
12 IDC facility R280m, 11.50%, 8y, 1y grace Analyst structuring
13 DBSA facility R180m, 10.75%, 10y, 1y grace Analyst structuring
14 Fleet finance 75% LTV, 12.25%, 5y Standard asset-backed trucking finance
15 Revolver rate 11.75% Prime-linked WC facility
16 Corporate tax 28% + s20 (80% cap) Income Tax Act, FY2023+ rate
17 Net working capital 16% of revenue Transit bonds, DSO, consumables §12
18 Minimum operating cash R20m Analyst liquidity floor
19 Exit multiple 6.0x EV/EBITDA Y10 Logistics corridor 5–8x
20 No dividends in horizon Full retention Conservative; funds deleveraging
21 Fuel pass-through Partial via clauses Contract-dependent; downside stresses it

Appendix F — Combined-Shock DSCR Matrix

Single-variable sensitivities understate corridor risk because shocks
correlate. The matrix shows Year 3 DSCR (base 1.31x — the first
covenant-test year) under simultaneous productive-trip (utilisation) and
rate shocks, holding fleet at base. Cells at or above 1.30x are viable
without support.

Y3 DSCR (x) Rate +5% Rate base Rate −5% Rate −10%
Trips +10% 1.62 1.48 1.34 1.20
Trips base 1.44 1.31 1.18 1.05
Trips −10% 1.26 1.14 1.01 0.88
Trips −20% 1.08 0.97 0.85 0.72

Reading: the first covenant test survives modest single shocks but
fails under combined utilisation-and-rate stress — precisely the profile
of a serious corridor disruption. This is the quantitative case for the
funded debt-service reserve, the covenant holiday to Year 3, and
take-or-pay contract floors that stabilise both trips and rates. From
Year 4 the widening cover (1.69x rising to 2.47x) absorbs these shocks
comfortably.

Appendix G — Debt-Service Reserve Mechanics

The reserve resolves the ramp-period DSCR problem in Section 12.5.
Approximately R110 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.

R m Y1 H1 Y1 H2 Y2 H1 Y2 H2 Y3 (ref)
Opening reserve 110.0 82.0 54.0 30.0 8.0
Senior debt service due 26.0 26.0 30.0 30.0 64.4 (full yr)
CFADS contribution −2.0 −2.0 6.0 8.0 84.3 (full yr)
Reserve drawn 28.0 28.0 24.0 22.0
Closing reserve 82.0 54.0 30.0 8.0 8.0 released

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 R84.3m against total debt service of R64.4m restores cover
above 1.30x at the first unaided test, consistent with Figure 18.

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 XSMLT Nexus Logistics (Pty) Ltd.