Solar Smart EnergyBusiness Plan and Capital Raise · FY2027–FY2036

Important notice and disclaimer

This document is confidential and is issued for information purposes only.

Purpose of this document

This business plan has been prepared by the directors of Solar Smart Energy (Pty) Ltd (“the Company”) for the sole purpose of assisting existing shareholders and prospective investors in evaluating a proposed subscription for ordinary shares. It does not constitute an offer to the public as contemplated in the Companies Act 71 of 2008, and is directed only at persons falling within the exemptions contained in section 96 of that Act.

Forward-looking statements

The financial projections contained in this document are forward-looking statements. They reflect the directors' current expectations of future events and are based on the assumptions set out in the Financial Assumptions section. Those assumptions concern matters that are partly or wholly outside the Company's control — including exchange rates, electricity tariff paths, import duties, interest rates and customer demand. Actual results will differ from those projected, and the differences may be material. Nothing in this document should be construed as a guarantee, forecast or warranty of future performance.

No advice

Neither this document nor any part of it constitutes financial, investment, legal, tax or accounting advice. Each recipient must make its own independent assessment and should consult its own professional advisers. The Company, its directors and its advisers accept no liability for any loss arising from reliance on this document.

Basis of preparation

The projections have been prepared on the going-concern basis using accounting policies consistent with IFRS for SMEs. They have not been audited, reviewed or otherwise reported on by the Company's independent auditors. All monetary amounts are stated in nominal South African Rand unless otherwise indicated. Where United States Dollar amounts are shown, they are a presentational convenience converted at a fixed rate of R18.50 to US$1.00 and do not represent a forecast of future exchange rates.

Confidentiality

This document and its contents are confidential. By accepting delivery, the recipient agrees not to reproduce, distribute or disclose it, in whole or in part, without the prior written consent of the Company, and to return or destroy it on request.

Table of contents

53 pages. Figures may be displayed in Rand or United States Dollars using the currency selector in the toolbar.

Executive summary

A profitable, cash-generative solar business scaling from regional installer to national platform.

Solar Smart Energy (Pty) Ltd imports solar photovoltaic modules, inverters, batteries and mounting systems from Tier 1 international manufacturers and designs, installs, commissions and maintains those systems for South African commercial, industrial and residential customers. The Company controls the value chain from port of entry to roof, which is the single most important structural advantage in this market: it captures the import margin, the engineering margin and the installation margin on the same kilowatt.

The Company is seeking in new ordinary equity to fund a national scale-up. The capital is not required to prove the model — it is required to remove the two constraints that currently cap growth: import working capital and installation capacity outside the Western Cape.

Why this market, and why now

South African rooftop solar has passed 9,100 MW of installed capacity — more than every utility-scale renewable project ever contracted by the state combined. This was not built by government. It was built by private businesses and households responding to a simple arithmetic problem: grid electricity now costs roughly R3.00 per kilowatt-hour and rises at double-digit rates each year, while rooftop solar delivers energy at roughly R0.95 per kilowatt-hour over its life.

That spread is the whole business. It does not depend on load-shedding returning, on subsidy, or on sentiment. It depends only on the tariff continuing to rise faster than the installed cost of solar — which has been true every year for a decade and is embedded in the utility's own multi-year price determinations.

Where the money goes

of the raise funds the import inventory float that lets the Company buy containers rather than pallets; opens Gauteng and KwaZulu-Natal branches in provinces that together hold roughly half the national installed base; the balance funds installation capability, the Solar-as-a-Service asset seed, systems and transaction costs.

Summary financial performance

Ten-year trajectory: growth funded from operations after year two.

What the shape of these numbers means

Three things are worth reading off the table above. First, the EBITDA margin starts thin — 3.9% in FY2027. That is normal and honest for an engineering and construction business carrying a national overhead before national volume arrives. Anyone presenting a first-year solar EPC margin of twenty percent is either not building the overhead or not telling you something.

Second, the margin expansion to 18.3% by FY2036 is not driven by charging customers more. It is driven by mix: maintenance contracts and Solar-as-a-Service grow from nothing to 14.4% of revenue, and those streams carry margins two to four times the installation business.

Third, cash never goes negative. The minimum closing cash balance across the ten years is , and peak net debt is . The plan does not require a second equity round.

The investment opportunity

Terms of the proposed subscription for ordinary shares.

Market context

South Africa's electricity economics have permanently repriced distributed generation.

The tariff is the market

South Africa's electricity price has risen faster than inflation in every year since 2008. The April 2026 determination lifted average residential rates by roughly 13.7% to approximately R3.00 per kilowatt-hour. Commercial and industrial tariffs, once network charges, demand charges and time-of-use penalties are included, land materially higher for many users.

Against this, a well-engineered commercial rooftop system delivers electricity at approximately R0.95 per kilowatt-hour on a levelised basis over a twenty-five year module life. The resulting payback period has compressed to under five years for most commercial users — and under four years for high-consumption, high-daytime-load businesses such as cold storage, manufacturing, retail centres and agriculture.

Scale of the installed base

Rooftop photovoltaic capacity in South Africa reached approximately 9,107 MW by June 2026, having passed the 8 GW mark earlier that year. For context, the total operational solar capacity contracted under the state's REIPPPP and RMIPPPP procurement programmes combined is approximately 2.8 GW. Private rooftop deployment is now more than three times the size of the entire public renewable procurement programme.

Total installed solar capacity in the country is forecast to rise from approximately 9.8 GW in 2026 to close to 17 GW by 2031 — implying roughly 7 GW of new capacity to be designed, imported, installed and maintained over the plan's first five years.

Installed rooftop PV capacity, gigawatts. Historical figures from National Transmission Company of South Africa estimates; 2027 onward interpolated from published industry forecasts of approximately 17 GW total installed solar by 2031.

Where the capacity sits

Gauteng accounts for approximately 30% of the national installed base. Gauteng, KwaZulu-Natal and the Western Cape together account for roughly 60%. The Company's current operations are concentrated in the Western Cape — meaning it is presently addressable to well under half of its own market. Correcting that is the primary purpose of this raise.

Market segmentation and sizing

Four addressable segments, ranked by margin quality rather than headline size.

Sizing the addressable opportunity

The Company's serviceable market is defined by the intersection of three constraints: geography (provinces with a physical branch), segment (commercial and residential rooftop) and project scale (systems between 5 kWp and 3 MWp). On the forecast national build of roughly 7 GW over FY2027–FY2031, the Company plans to capture the installed volumes below.

Market research: methodology

How the demand assumptions in this plan were tested before they were relied on.

The volume and pricing assumptions underpinning Sections 28 to 37 were not derived from industry commentary. A structured research programme was commissioned between September and December 2025 and refreshed in May 2026, combining primary field research with secondary data. The methodology is set out below so that a reviewer can judge the weight the findings deserve.

Primary research

Secondary research

• National Transmission Company of South Africa — published estimates of installed distributed generation capacity by province.
• Statistics South Africa General Household Survey — household solar adoption and income segmentation.
• NERSA determinations and Eskom tariff schedules — the multi-year price path and time-of-use structures underlying every payback calculation in this plan.
• Integrated Resource Plan and Department of Mineral Resources and Energy publications — national capacity outlook.
• South African Photovoltaic Industry Association and international module pricing indices — installed cost and equipment price deflation.
• Companies and Intellectual Property Commission filings and published financial statements of listed and large private competitors, where available.

Market research: findings

What buyers actually said, including the findings that were unhelpful.

Commercial purchase drivers

Respondents ranked seven factors in importance when selecting a solar installer. The results below are the proportion of the 214 commercial respondents placing each factor in their top three.

Barriers among businesses that evaluated and declined

Residential findings

Market sizing and geographic priority

Addressable market built from the bottom up, and the share this plan actually requires.

The plan therefore requires the Company to capture 4.9% of its serviceable market and 2.2% of the national build over five years. Revenue share exceeds capacity share because residential systems generate roughly twice the revenue per megawatt of commercial arrays.

Geographic prioritisation

Regulatory and fiscal framework

The rules governing generation, connection, importation and taxation.

Generation licensing

The licensing threshold for embedded generation was raised to 100 MW in 2021 and subsequently removed for most self-generation, replaced by a registration regime administered by NERSA. Systems within the Company's project range require registration, not licensing — a materially lower administrative burden and a direct enabler of the commercial rooftop market.

Grid connection and compliance

Grid-tied systems must comply with NRS 097-2-1, incorporate certified anti-islanding protection, and be registered as Small-Scale Embedded Generation with the relevant distributor. Eskom has extended its SSEG registration fee waiver for systems up to 50 kW to 30 September 2026, and is introducing a prepaid metering option for residential generators. Every installation is issued with a Certificate of Compliance by a registered installation electrician.

Section 12B capital allowance

Section 12B of the Income Tax Act 58 of 1962 permits a taxpayer carrying on a trade to deduct 100% of the cost of qualifying photovoltaic assets not exceeding 1 MW in the year the asset is first brought into use. Arrays above 1 MW are written off on a 50/30/20 basis over three years. The threshold was confirmed by National Treasury in the 2025 Budget and will not be revised.

The enhanced Section 12BA allowance, which provided a once-off 125% deduction, applied only to assets brought into use between 1 March 2023 and 28 February 2025 and was not renewed. This plan assumes no benefit from Section 12BA.

Section 12B matters to the Company in two ways. As a sales argument, it reduces the effective cost of a commercial system by 27% of qualifying capital cost at the corporate tax rate, shortening customer payback by roughly a year. As a tax position, the Company's own Solar-as-a-Service assets qualify, producing an accelerated first-year deduction and a deferred tax liability that unwinds over the asset life. This treatment is applied explicitly in the tax computation.

Importation

Photovoltaic modules enter South Africa free of customs duty. Inverters, batteries and certain balance-of-system components attract duty at rates between zero and 20% depending on tariff heading, plus VAT at 15% on the landed value. All imports are subject to SABS and NRCS letter-of-authority requirements where applicable. The Company's customs position is managed by an appointed clearing agent under a standing power of attorney, with tariff classifications reviewed annually by its tax advisers.

Competitive landscape

A fragmented market with a widening quality gap.

South African solar installation is severely fragmented. Thousands of small installers compete on price at the residential end, while a small number of engineering firms and independent power producers contest large commercial and utility-scale work. The middle of the market — 100 kWp to 3 MWp commercial rooftop — is where the Company competes, and it is structurally under-served.

The structural advantage: vertical integration

Most competitors sit on one side of a margin split. Distributors earn roughly 14–16% on equipment and stop. Installers buy that equipment at retail and earn perhaps 15–18% on what remains. The Company does both, which is why its blended commercial gross margin of approximately 18.3% in FY2027 is achievable without pricing above the market.

Company overview

History, legal structure and current operating base.

How the business reached this point

Vision, mission and strategic objectives

What the Company is building, and how progress will be measured.

Operating values

• Engineer first. Every system is designed by a qualified engineer against the customer's actual load profile, not sized from a rule of thumb and a roof photograph.
• Own the outcome. Installation crews are employed, not subcontracted. When a system underperforms, there is one company to call.
• Price honestly. Quotations state assumptions, yields and degradation openly. Savings projections are modelled, not promised.
• Build people. The binding constraint on this industry is skilled installers. The Company trains its own and expects to lose some to competitors — and trains more.

Strategic objectives to FY2031

Business model and revenue streams

Five streams, deliberately sequenced from transactional to recurring.

Import and supply chain strategy

The capability the raise is principally intended to fund.

Sourcing

The Company procures modules from manufacturers appearing on the BloombergNEF Tier 1 list, which screens for bankability rather than price. Inverters and battery systems are sourced from a deliberately narrow panel of three approved manufacturers — narrow because after-sales support, firmware maturity and local spares availability matter more over a twenty-year asset life than the two or three percent that a fourth supplier might shave off landed cost.

Supplier selection is governed by a formal approved-vendor process assessing manufacturing capacity, warranty enforceability in South African law, third-party test certification, insurance-backed product warranties and financial standing. Approved vendors are re-assessed annually.

The import cycle

Currency management

Approximately 68% of cost of sales is denominated in United States Dollars. The Company's treasury policy requires that at least 75% of committed foreign currency exposure is hedged by forward exchange contract at the point of order confirmation, with the balance left open to avoid over-hedging orders that may be varied or cancelled. Unhedged exposure is reported to the board monthly. Customer quotations carry a 30-day validity and an explicit currency adjustment clause beyond that period.

Inventory discipline

Inventory is held at 72 days of cost of sales in FY2027, reducing to 58 days by FY2036 as demand forecasting improves and branch replenishment replaces single-point holding. Stock is insured at replacement value in transit and in store. Slow-moving lines above 120 days are cleared through the distribution channel rather than written down — one of the strategic reasons the distribution stream exists.

Engineering and delivery capability

How a project moves from enquiry to a system under maintenance contract.

Quality and safety

All installation electricians hold a valid wireman's licence; all installers carry PV GreenCard accreditation. The Company operates a documented Health and Safety Management System compliant with the Occupational Health and Safety Act 85 of 1993 and the Construction Regulations 2014, with working-at-height competency mandatory for every crew member. The FY2027–FY2031 target is a lost-time injury frequency rate below 0.45 per 200,000 hours worked.

Products and technical specification

Standardised system architectures, deliberately limited in number.

Indicative FY2027 pricing excluding VAT. Commercial pricing equates to approximately per megawatt installed, consistent with the revenue model. Residential pricing includes battery storage, which is why it exceeds the R15,000–R18,000 per kilowatt commonly quoted for storage-free systems.

Standard component specification

Sales and marketing strategy

Two distinct motions for two distinct buyers.

Marketing investment and unit economics

Blended acquisition cost across both segments. Commercial acquisition cost is substantially higher per unit than residential but is spread across an average contract value roughly thirty times larger.

Brand position

The Company competes on engineering credibility, not price. This is a deliberate and uncomfortable choice: it forfeits the bottom third of the residential market and a meaningful share of price-driven commercial tenders. It is made because that is where warranty claims, underperformance disputes and reputational damage concentrate — and because a maintenance annuity can only be built on systems the customer is satisfied with.

Customer segments and value proposition

Who buys, why they buy, and what they are actually buying.

What the customer is actually buying

It is tempting to describe the value proposition as “cheaper electricity”. That is incomplete and, for the commercial buyer, not the decisive argument. What a commercial customer buys is a twenty-year fixed price for a portion of an input cost that has risen at double digits annually for fifteen years. Solar does not merely reduce the electricity bill. It converts an unpredictable, escalating operating cost into a known, depreciating capital asset.

Objection handling

• “Load-shedding is over.” Correct, and irrelevant. The case rests on tariff arbitrage, not outage avoidance. The tariff has risen every year regardless.
• “Panel prices keep falling — we should wait.” Module cost is now roughly a third of installed system cost; a further 10% module deflation moves total cost by around 3%, while a single year's deferral forfeits a full year of savings that typically exceeds 20% of system cost.
• “We may not own the building in ten years.” Addressed by the Solar-as-a-Service structure, where the Company owns the asset and the occupier simply buys cheaper electricity with no capital outlay.

Marketing roll-out plan: phasing

Four phases over thirty months, sequenced to branch openings rather than to the calendar.

The marketing programme is deliberately subordinated to operational readiness. Demand generated ahead of installation capacity does not convert — it produces quotations that age, customers who go elsewhere, and a reference base of disappointed enquirers. Each phase below is therefore gated on a physical capability being in place.

Phase objectives and measures

Marketing channel plan and budget

Twelve channels, each carrying a lead target and an implied cost per enquiry.

Brand, website, content and marketing automation carries no direct lead target because it is enabling expenditure. Its return is measured through conversion rate improvement across the other eleven channels rather than through attributed enquiries.

Channel notes

• Outbound sales development is the largest single commercial channel because the research found that businesses which proceed are credibility-led, and credibility is established in conversation rather than in advertising. Two sales development representatives are budgeted in the personnel line, not here; this budget covers data, tooling and sequencing.
• The energy audit is sold at and credited in full against any subsequent installation. It is a qualification instrument, not a revenue line: a business willing to pay for an audit has budget authority and intent, and audit-originated opportunities are assumed to convert at roughly double the general rate.
• The referral programme pays on a completed residential installation. At an implied cost per enquiry of it is the cheapest residential channel, and it scales with the installed base rather than with spend — which is why its share rises through the plan.
• Conferences and events carry the highest commercial cost per enquiry at . They are retained at modest weight because the research identified specification by electrical consultants as a material influence, and those relationships are formed at sector events.

Campaign calendar

Twenty-four months, timed to the tariff cycle rather than to the seasons.

FY2027

FY2028

Always-on activity

• Reference site programme — every commercial installation above 250 kWp is photographed, monitored and written up, with customer consent negotiated at contract stage rather than requested afterward.
• Performance reporting as marketing — quarterly performance-ratio reports to every maintenance customer, which the research indicates is the principal driver of the referral and attach rates the model depends on.
• Search and content — continuous investment in ranking for commercial-intent terms, which compounds and is the primary reason cost per enquiry declines through the plan.
• Channel partner enablement — quarterly technical briefings for electrical consultants and accredited independent installers.

Marketing funnel economics and key indicators

The arithmetic connecting marketing spend to the installation volumes in the model.

Lifetime value and return on acquisition

Marketing key performance indicators

Solar-as-a-Service programme

Converting installation capability into owned, contracted, annuity assets.

Under Solar-as-a-Service the Company funds, owns, operates and maintains the system, and the building occupier signs a fifteen-year power purchase agreement to buy the electricity it produces at a tariff set below the prevailing grid rate and escalating more slowly. The customer pays no capital, carries no technical risk, and starts saving in month one.

Operations and branch rollout

Sequencing national coverage against demonstrated demand.

Installation capacity model

Installed volume is a function of crews, not of demand. Each commercial crew comprises a site supervisor, two qualified electricians and four installers, and delivers approximately 1.35 MW per year at target productivity. Residential crews of three deliver approximately 95 systems per year.

Systems

The Company operates an integrated ERP covering quotation, bill of material, procurement, inventory by branch and serial number, project costing, field service scheduling and warranty tracking. Every installed system carries a serialised asset record linking modules, inverter and batteries to the installation, the crew and the maintenance contract — which is what makes warranty administration and the maintenance annuity operationally possible at scale.

Staffing plan and payroll schedule

Headcount by role, fully costed, and the month-by-month build to 100 people.

Payroll is the Company's largest controllable cost and the binding constraint on growth. It is presented in two parts because it sits in two places in the income statement: direct installation labour is a cost of sales and moves with volume, while overhead and support payroll is an operating expense and is largely fixed once committed.

Overhead and support payroll — FY2027 (operating expenditure)

Ties to the personnel and directors' emoluments line of in Section 32. Costs are fully loaded, including employer contributions to UIF, the Skills Development Levy, medical aid subsidy and retirement funding. No share-based payment charge is included; the proposed employee incentive scheme is described in Section 25.

Direct installation payroll — FY2027 (cost of sales)

Direct labour of represents 15.3% of cost of sales, the balance being imported equipment, mounting systems, cabling, and logistics. Crews are permanently employed rather than contracted, which raises fixed cost and is the reason installed quality can be warranted.

Month-by-month headcount build — FY2027

Management team

Executive capability against the demands of the plan.

Board of directors following the transaction

Capability gaps the Company acknowledges

Two gaps are recognised and provided for. The Company has no executive with asset finance experience, which becomes material as the Solar-as-a-Service fleet scales from FY2029; a Head of Asset Finance is budgeted from FY2028. It also lacks a dedicated human resources function, which is a serious omission for a business planning to more than quintuple headcount; an HR Director is budgeted from FY2027.

Governance, compliance and transformation

The control environment an institutional investor should expect.

Board and committees

The board meets quarterly and comprises five directors, of whom two are independent non-executives and one is investor-appointed. It operates under a formal charter with a documented schedule of matters reserved for board approval. Two committees are constituted:

• Audit and Risk Committee — chaired by an independent non-executive, meeting quarterly, responsible for financial reporting integrity, the risk register, internal control, external audit and treasury policy compliance.
• Remuneration and Nomination Committee — meeting twice yearly, responsible for executive remuneration, incentive design and succession.

Financial control

Transformation and B-BBEE

The Company is currently a Level 4 contributor. Many commercial customers — particularly listed corporates, state-owned entities and their suppliers — apply preferential procurement weightings that materially affect tender outcomes. Improving to Level 2 by FY2029 is therefore a commercial objective as much as a transformational one.

The path comprises an employee share ownership plan covering 12% of ordinary shares held by a trust for the benefit of employees below management grade; the apprenticeship programme described in Operations, which generates skills development points; enterprise and supplier development directed at black-owned electrical subcontractors and transport providers; and a management control plan targeting 50% black representation at senior management by FY2030.

Statutory compliance

The Company maintains compliance with the Companies Act 71 of 2008, the Income Tax Act, the Value Added Tax Act, the Customs and Excise Act, the Occupational Health and Safety Act, the Basic Conditions of Employment Act, the Labour Relations Act, the Protection of Personal Information Act, the Consumer Protection Act and the National Credit Act where applicable. A compliance calendar is maintained by the Chief Financial Officer and reported to the Audit and Risk Committee quarterly.

Risk analysis and mitigation

The eighteen risks the directors consider material, assessed candidly.

Environmental, social and governance impact

Measurable outcomes, stated as quantities rather than intentions.

Environmental

By FY2036 the Company's cumulative installed base of 511 MW is expected to generate approximately 895 GWh annually. Applying South Africa's grid emission factor of approximately 0.93 tonnes of CO₂e per megawatt-hour — among the highest of any major economy, given the coal-dominated generation fleet — this displaces roughly 832 kilotonnes of CO₂e each year.

The Company operates a documented end-of-life policy: modules and inverters removed during maintenance or repowering are returned to an accredited e-waste recycler, and battery units are returned to the manufacturer under take-back arrangements. Packaging waste at the central warehouse is separated and recycled, and the FY2029 target is 90% diversion from landfill.

Social

The apprenticeship programme trains 48 people annually from FY2028 in a scarce, portable, nationally recognised trade. Not all will remain with the Company; the directors regard training electricians who subsequently join competitors as an acceptable cost of operating in an industry constrained by a national skills deficit.

The employee share ownership plan places 12% of ordinary shares in trust for employees below management grade, so the workforce that builds the installed base participates in the value it creates. Beyond direct employment, the customer impact is a reduction in electricity cost for businesses operating in an economy where energy cost is a documented constraint on employment.

Governance

Governance arrangements are set out in Section 25. For ESG purposes the material commitments are: an independent chair; a majority-independent Audit and Risk Committee; annual external audit; a formal risk register reviewed quarterly; a whistle-blower facility operated by an independent third party; and an anti-bribery policy with mandatory annual declaration by all employees involved in procurement or tendering.

Financial assumptions

Every projection in this document derives from the assumptions on this page.

Macroeconomic

Revenue

Margin and cost

Working capital, capital and funding

Assumptions are stated on a nominal basis. The most sensitive assumptions — installation volume and gross margin — are stress-tested in Section 38.

Start-up and capital expenditure schedule

Every Rand of capital expenditure, itemised, with the life over which it is written off.

FY2027 capital expenditure — itemised

Ties to the investing outflow in Section 33. Depreciation is straight line to nil residual, producing the FY2027 charge of in Section 30. Solar-as-a-Service generating assets are capitalised separately from FY2029 ( in that year) and are depreciated over twenty years against the contracted tariff income described in Section 21.

Capital expenditure over the plan

Projected income statement

Ten years to FY2036, prepared on the accrual basis.

Taxation comprises current tax and the deferred tax arising from the Section 12B accelerated allowance on Solar-as-a-Service assets. The reconciliation is set out in Section 35.

Revenue and gross margin analysis

Where the revenue comes from and where the margin is actually earned.

Reading the margin bridge

The blended gross margin rises from 19.4% to 29.6% across the plan. It is worth being precise about what causes this, because a reviewer is entitled to be sceptical of a margin that expands by twelve percentage points.

Roughly a third of the expansion comes from within-segment improvement — the commercial installation margin rises from 18.3% to 21.5% through procurement scale and crew productivity, which is modest and defensible. The remaining two thirds come from mix: maintenance revenue at roughly 52% margin and Solar-as-a-Service at 78% cash margin grow from nothing to 14.4% of revenue.

Operating expenditure analysis

Overhead as a proportion of revenue, and the operating leverage it produces.

Operating leverage

Overhead falls from 15.5% of revenue in FY2027 to 11.3% in FY2036. This is the second driver of margin expansion, alongside mix. The mechanism is straightforward: head office engineering, finance, technology and executive costs are largely fixed against volume, while branch costs scale with revenue but at a lower rate than revenue itself.

The directors regard approximately 62% of the overhead base as genuinely fixed within a twelve-month horizon — principally salaried personnel, premises and technology. This figure is used explicitly in the break-even and sensitivity analysis in Section 38, and it is the reason a volume shortfall damages this business faster than a margin shortfall of equivalent Rand value.

Projected cash flow statement

The statement on which the adequacy of this raise is judged.

The FY2027 opening balance comprises the subscription proceeds together with of existing shareholders' funds.

Monthly cash flow forecast: FY2027

Month one to month twelve. The annual statement hides the point of maximum strain; this does not.

Monthly cash flow forecast: FY2028

Month thirteen to month twenty-four, covering the KwaZulu-Natal launch.

Reconciliation to the annual statements

From FY2029 the forecast reverts to an annual basis. Monthly modelling beyond twenty-four months implies a precision the underlying assumptions cannot support.

Projected balance sheet

Financial position at each year end.

Deferred taxation

The deferred tax liability arises because Section 12B permits a 100% deduction of qualifying Solar-as-a-Service asset cost in the year the asset is brought into use, while the asset is depreciated over twenty years for accounting purposes. The resulting temporary difference is recognised at 27% and unwinds over the asset life. It is a non-cash liability and reverses gradually; it is disclosed separately here because it materially affects the tax charge in the income statement without affecting tax paid in the cash flow statement.

Assessed losses, where they arise, are carried forward and offset against subsequent taxable income subject to the 80% limitation contained in section 20 of the Income Tax Act.

Working capital and funding structure

The mechanics of the cash cycle this raise is designed to fund.

Funding sources

Debt service capacity

Debt service cover is calculated as EBITDA less tax paid, divided by interest and scheduled principal. The minimum across the plan is 4.69×, comfortably above the 1.30× covenant typically imposed on facilities of this nature.

Ratio analysis

Profitability, liquidity, efficiency and return.