1. S-Curve The Calculations, Parameters and Formulas

2. © 2008 Business Connexion (Pty) Ltd System Parameter Functions WE17PUWE17PU – Cash flow default values WE23PUWE23PU – Cash flow default values per service type WD16PUWD16PU – Default CPAB Index values NOTE: the function will always look for the default values for the specific service type and if not found, then go to the system default values

3. © 2008 Business Connexion (Pty) Ltd WE23PU – Cash flow default values per Service Type No values entered for any service types

4. © 2008 Business Connexion (Pty) Ltd WE17PU – System cash flow default values Values to be used for ALL service types

5. © 2008 Business Connexion (Pty) Ltd WD16PU – Default CPAB Index Values Values entered per YEAR

6. © 2008 Business Connexion (Pty) Ltd Input Values Contract period (WD01PU/WJ02PU) Cash flow indicator (WE13PU/WE54PU) Financial tender date (WE01PU)

7. © 2008 Business Connexion (Pty) Ltd DATES Dates will be used and/or calculated in the sequence they appear from first to last depending if the date exist in the system

8. © 2008 Business Connexion (Pty) Ltd First delivery date (WG03PU) Actual first Delivery date Projected first delivery date Projected contractual first delivery date

9. © 2008 Business Connexion (Pty) Ltd Tender Date Tender award date (WG03PU) Tender validity extension date (WG01PU) Tender validity date (Actual/Projected) (WG01PU) Tender advert extension date (WG01PU) Tender advert date (Actual/Projected) (WG01PU) Financial tender date (WE01PU) NOTE: TODAY NOTE: if the service status is between 3 and 4B and the tender date is smaller than today’s date, tender date = TODAY

10. © 2008 Business Connexion (Pty) Ltd First payment and Cash flow start dates (START DATE) Actual date on which the first construction payment was made Site hand over date (Actual/Projected) (WG03PU) Tender award date (WG03PU) Tender validity extension date (WG01PU) Tender validity date (Actual/Projected) (WG01PU) Tender dateTender date (as calculated previously) NOTE: TODAY NOTE: if no actual payments were made in the 1st financial year, and the date is smaller than today, Start date = TODAY

11. © 2008 Business Connexion (Pty) Ltd Cash flow amount and -date Last accepted authorized amount and – date Last accepted estimate amount and – date NOTE: NOTE:If an estimate is used, the following is applicable; Amounts are escalated and the cash flow date, tender date and cash flow amounts as above are used for the calculated years and amounts

12. © 2008 Business Connexion (Pty) Ltd Last payment date Last actual payment verification date Last actual payment registration date NOTE: NOTE: if last payment date = 0, calculate the new contract period with the following formula Contract period (WD01PU/WJ02PU) * ((100 + % contract extension) / 100)

13. © 2008 Business Connexion (Pty) Ltd End date If start date smaller than actual first delivery date (indicator = Y, WG03PU) Actual first delivery date If start date greater or equal actual first delivery date Actual first delivery date + contract period If contract period less than 16 and last payment date = 0 Add 42 If contract period is less than 4 and projected Subtract 42

14. © 2008 Business Connexion (Pty) Ltd OTHER FORMULAS AND CALCULATIONS NOTE: NOTE: “Year” (current or previous) refers to a financial year and not a fiscal year

15. © 2008 Business Connexion (Pty) Ltd General Expenditure Previous Years = Contractor/ Supplier/Conveyancer/Lessor expenditure – previous years + Journals – previous years Expenditure Current Year = Contractor/ Supplier/Conveyancer/Lessor expenditure – current year + Journals – current year Total Expenditure = Expenditure previous years + Expenditure current year Expenditure per year = Contractor/Supplier/ Conveyancer/Lessor expenditure per year + Journals per year (10 values) Cash flow years = number of years before the current financial year

16. © 2008 Business Connexion (Pty) Ltd General (continue) Contract value = nett tender amount + VAT on tender amount (WG03PU) T-Value (year) = Number of days between first – and last day of the specific year / Contract period 2 (10 values) Retention value = (Retention represent percentage / 100) * Cash flow amount Balance = Cash flow amount – Retention value Balance 1 = Cash flow amount – Total Expenditure

17. © 2008 Business Connexion (Pty) Ltd Contract Period If cash flow amount > 999.99 and cash flow date greater or equal than 19840201 Cash flow year = 1984 Amount A = cash flow amount / (CPAB-value (year) / 100) * (cash flow month – 2) / 12 + 1 Cash flow year greater than 1984 Amount A = cash flow amount / (CPAB-value (year) / 100) * (cash flow month / 12) + 1) Repeat the following until the cash flow year = 1984 Subtract 1 from cash flow year Amount B = Amount A / (CPAB-value (year) / 100) + 1 This is only calculated when contract period was NOT entered

18. © 2008 Business Connexion (Pty) Ltd Contract Period - continue Add Amount B to Amount A If cash flow year = 1984 Amount B = Amount A / ((CPAB-value (year) / 100) * (10 / 12) + 1) Add Amount B to Amount A If cash flow amount > 999.99 and cash flow date < 19840201 Use the cash flow date Use a variable date of 19840228 Cash flow amount = Amount B Use the escalation formula to create yearly amounts If the cash flow amount < 1000 Escalation amount = cash flow amount

19. © 2008 Business Connexion (Pty) Ltd Contract Period - continue If Amount B > 0 Amount C = Natural logarithm of Amount B Amount D =.66 * (exponent of Amount C to.0776) Projected contract period = exponent of 10 to Amount D Contract period type = 3

20. © 2008 Business Connexion (Pty) Ltd Escalation Formula If tender date >= cash flow date If tender year = cash flow year Amount A = estimate * CPAB-value (year) / 100 * ((tender month – estimate month) / 12) Amount B = Amount A + Estimate Amount If tender year not = cash flow year Amount A = Estimate * CPAB-value (year) / 100 * ((12 – Estimate month) / 12) Amount B = Amount A + Estimate Amount Repeat the following until the tender year = cash flow year Add 1 to tender year Amount A = Amount B * CPAB-value (year) / 100 Add Amount A to Amount B If tender year = cash flow year Amount A = Amount B * (CPAB-value (year) / 100) * (Estimate month / 12) Add Amount A to Amount B Cash flow amount = Amount B

21. © 2008 Business Connexion (Pty) Ltd Contract retention If contract value > 0 Contract retention = contract value * percentage contract retention / 100 If contract value = 0 Contract retention = cash flow amount * percentage contract retention / 100

22. © 2008 Business Connexion (Pty) Ltd Retention calculation If retention year = 1 If financial year month > 3 Add retention value to current year cash flow If financial year month < 4 Add retention value and balance to next year cash flow If retention year = 2 If financial year month > 3 Add retention value to current year cash flow If financial year month < 4 Add retention value and balance to next year cash flow Add retention amount and balance to current year + 2 cash flow

23. © 2008 Business Connexion (Pty) Ltd Retention calculation (continue) If retention year = 3 Amount A = retention value / 24 If financial year month = 3 Cash flow current + 1 = (retention value / 2) + balance Cash flow current + 2 = retention value + balance If financial year month not = 3 If financial year month > 3 Month A = 12 – (financial year month – 3) If financial year month < 4 Month A = 3 – financial year month Amount B = Amount A * Month A Add Amount B to cash flow amount for Month A Add 1 to current year Add 12 to Month A Cash flow latest year = Balance + Amount A * Month A Cash flow latest year + 1 = Balance + Retention value Repeat for each financial year If year > current year Add previous year cash flow amount to latest year cash flow amount

24. © 2008 Business Connexion (Pty) Ltd T-Value 2 (year) calculation T-Value 2 (year) = number of days between cash flow start – and end dates If T-Value 2 (year) > Intersection Amount A = T-Value 2 (year) – Intersection Amount B = (Slope – 1) / (1 – Intersection) Cash flow (year) = Amount A * (Slope – Amount B) + Intersection + Balance If T-Value 2 (year) <= Intersection Amount A = Slope – 1 Amount B = Amount A / Intersection Cash flow (year) = T-Value 2 (year) * (2.000000 – Slope + Amount B * T-Value 2 (year)) + Balance

25. © 2008 Business Connexion (Pty) Ltd CASH FLOW CALCULATIONS Theoretical and Actual Cash flow

26. © 2008 Business Connexion (Pty) Ltd Theoretical Cash flow Contract days = number of days between start – and end dates Repeat for each financial year If T-Value (year) > Intersection Amount A = T-Value (year) – Intersection Amount B = (Slope – 1) / (1 – Intersection) Amount C = Amount A * (Slope – Amount B * Amount A) + Intersection If T-Value (year) <= Intersection Amount A = Slope – 1 Amount B = Amount A / Intersection Amount C = T-Value (year) * (2.000000 – Slope + Amount B * T-Value (year)) Cash flow (year) = Amount C * Balance Do retention calculationretention calculation This is only calculated when NO actual expenditure exist

27. © 2008 Business Connexion (Pty) Ltd Calculated (Actual) Cash flow Cash flow amounts for previous financial year always equals actual expenditure for that year. Determine balance of the cash flow amount by cash flow amount – total previous expenditure This is only applicable when actual expenditure exist and construction is not completed (service status < 7A)

28. © 2008 Business Connexion (Pty) Ltd Calculated (Actual) Cash flow – continue Retention greater than 0 If 1st delivery actual or end date less than current financial year Add cash flow amount balance to cash flow latest financial year OR If 1st delivery projected or end date greater or equal to current financial year or end date less than today Add cash flow amount balance to cash flow current year OR If balance 1 less than=0 Add retention value to cash flow amount OR If end date year greater than financial year Add balance 1 to cash flow amount OR

29. © 2008 Business Connexion (Pty) Ltd Calculated (Actual) Cash flow – continue Retention > 0 (continue) If end month greater than 3 Month A = 15 – end month If end month less than 4 Month A = 3 – end month Amount A = (Balance 1 / 12) * Month A Add Amount A to cash flow amount Amount B = Balance 1 – Amount A * Month A Add Amount B to cash flow for next financial year OR Amount A = (cash flow amount – (cash flow decrease percentage / 100) * cash flow amount Amount B = cash flow amount – Amount A If Balance 1 greater than 0 Cash flow amount = expenditure current year + retention value OR

30. © 2008 Business Connexion (Pty) Ltd Calculated (Actual) Cash flow – continue If retention value greater than> balance 1 Repeat for each financial year If T-Value (year) greater than Intersection Amount A = T-Value (year) – Intersection Amount B = (slope – 1) / (1 – Intersection) Cash flow (year) = Amount A * (Slope – Amount B) * Amount A) + Intersection + Balance If T-Value (year) less or equal to Intersection Amount A = Slope – 1 Amount B = Amount A / Intersection Cash flow (year) = T-Value (year) * (2.000000 – Slope + Amount B * T- Value (year)) + Balance If retention less or equal to Balance 1 Do T-Value 2 (year) calculationT-Value 2 (year) calculation Amount A = (Cash flow latest financial year + total expenditure) ? 2 Amount B = Amount A / Cash flow latest financial year

31. © 2008 Business Connexion (Pty) Ltd Calculated (Actual) Cash flow – continue CF-Time = days between start – and end dates / Amount B If CF-Time + start date greater than end date Balance 2 = Balance – total expenditure Do T-Value 2 (year) calculationT-Value 2 (year) calculation If retention > 0 Do retention calculationretention calculation

32. © 2008 Business Connexion (Pty) Ltd Conclusion To make changes to the “formula” you only need to add additional parameters per Service type This cash flow can only be manipulated when actual amounts and dates exist See Cashflow presentation to get an idea on the impact of the parameters and dates on the system.