Lightyear - LIGHTYEAR — CFO Financial Command

ALERT

Mr. Khan

The cost structure appears disciplined on the surface but is carrying unpriced liabilities that Finance will not see until they compound into a balance sheet shock. The trajectory brief exposes an eight-week bleed with leakage accelerating 70% and compliance collapsing while health still reads 89; that gap means deferred problems are surfacing outside the financial control layer, with no provision for the SAR 1.5 million monthly leakage or the 178 compliance units about to trigger penalty drawdowns. Reclassify all compliance overdue beyond 7 days as accrued liability, open a dedicated provision for Iron Law renewals at SAR 172K monthly, and require Finance sign-off on any rental contract where idle cost exceeds 20% of contract value.

▲ IMPROVING

Trajectory — 12-Month Signal

This fleet has turned the corner and is now compounding gains across every dimension, with health climbing 12 points while waste falls 36% year-over-year. The strongest signal is sustained discipline through February and March when idle units briefly spiked yet leakage and waste continued their decline, proving the team is retiring the right iron and sweating the active assets harder. At current velocity, leakage drops below SAR 1.4M within 90 days, but only if replacement capital flows to retire the remaining 341 Iron Law units before maintenance costs reverse the waste curve.

Monthly Burn

Moderate Waste

Productive 65%

Waste 35%

Annual

SAR 186.3M/yr

Spend Composition

● Productive65%

● Rental Waste1%

● Owned Idle8%

● Ghost/Leakage27%

Monthly Cost by Owner

■ Company ■ Rental ■ Lease

Waste Decomposition

Idle Rental Spend SAR 143K

Owned Idle/Brkdown SAR 1.2M

Leakage (missed rev) SAR 1.5M

Ghost Fleet Carry SAR 2.6M

Total Waste/Mo SAR 5.5M

Monthly Burn

SAR 15.5M

All owners combined

Total Exposure

SAR 13.3M

Unpriced balance sheet liability

Waste in Burn

35%

SAR 5.5M/mo non-productive

▲ 4% 7d▼ 3% QoQ

Recoverable (12mo)

SAR 31.9M

3 levers, board approval

Company Burn

SAR 9.7M

62% of total fleet cost

▲ 2% QoQ

Rental Burn

SAR 3.5M

23% · 17 idle units

▼ 5% QoQ

Iron Law Flags

341 assets

SAR 172K/mo over lease alt

▼ 4% QoQ

Compliance Exposure

SAR 1.6M

150 assets with expired docs

▼ 18% 7d▼ 26% QoQ

02 — Decision Engine: Financial Recovery

Expired Docs

178

Unquantified liability

operating illegally

Value Actions

346

Ranked by net 12mo

execution ready

Recurring Recovery

SAR 14.7M

per year — opex only

salvage excluded

Liquidation

SAR 23.0M

one-time salvage

cash proceeds

Execution Cost

SAR 275K

to unlock 53× return

53:1 ROI (12mo)

Monthly Leakage by Action Type — Liability Register

Type	Description	Count	Monthly Leakage	Net 12mo Recovery	Share of Total
TERMINATE	Terminate Idle Rentals	15	SAR 129,517/mo	SAR 1,554,204	11% of total
SWAP	Internal Swap — Return Rental	108	SAR 250,343/mo	SAR 2,729,025	19% of total
DISPOSE	Dispose — TCO Breached	117	SAR 728,449/mo	SAR 8,741,388	60% of total
REPLACE	Replace — Iron Law	106	SAR 137,123/mo	SAR 1,645,476	11% of total
TOTAL			SAR 1,222,508/mo	SAR 14,670,093

Top 5 — Highest Net 12-Month Value Actions

Salvage shown separately — never blended into recurring

1

RENT-0086 TERMINATE

Crawler Crane

Madinah Tech Hub · Feasibility 90% · confirm contract notice period

SAR 22,293/mo

Net 12mo

SAR 267,516

2

RENT-0384 TERMINATE

Bulldozer

Al Balad Heritage · Feasibility 90% · confirm contract notice period

SAR 18,626/mo

Net 12mo

SAR 223,512

3

SSCL-0186 DISPOSE

Crawler Crane

Taqnia Industrial · Feasibility 100%

SAR 14,535/mo

+ SAR 244,357 salvage (one-time)

Net 12mo

SAR 174,420

4

SSCL-0181 DISPOSE

Crawler Crane

Al Wajh Airport · Feasibility 80% · active asset — line up replacement before disposal

SAR 16,687/mo

+ SAR 482,611 salvage (one-time)

Net 12mo

SAR 200,244

5

SSCL-1020 DISPOSE

Bulldozer

Saihat Logistics · Feasibility 100%

SAR 13,229/mo

+ SAR 435,800 salvage (one-time)

Net 12mo

SAR 158,748

03 — Cost Structure & Trajectory

Monthly Cost by Equipment Type

Crawler Crane⚑ 5 iron SAR 1.1M

Dumper⚑ 19 iron SAR 1.1M

Chain Excavator⚑ 15 iron SAR 936K

Bulldozer⚑ 5 iron SAR 879K

Boom Truck⚑ 6 iron SAR 719K

Mobile Crane⚑ 12 iron SAR 702K

Bus⚑ 8 iron SAR 588K

30-Day Cost & Depreciation Trend

— Total Cost — Depreciation — Rental Idle

Company Cost Components

■ Depreciation ■ Fuel ■ Maintenance

Cost Direction Signals

Total Fleet Burn

MoM ▲ 0%

Depreciation

MoM → 0%

Rental Idle Waste

MoM → 0%

Iron Law Count

MoM → 0%

Fleet Market Value

MoM → 0%

90-Day Cash Exposure Projection — At Current Slope 12-month trajectory engine · SAR/month

Monthly Burn

SAR 15,501,962 → SAR 15,335,680

now → in 90 days · −SAR 166,282/mo

Idle Leakage

SAR 1,531,384 → SAR 1,399,351

now → in 90 days · −SAR 132,033/mo

Rental Idle Cost

SAR 325,611 → SAR 235,192

now → in 90 days · −SAR 90,419/mo

Total Waste

SAR 5,245,448 → SAR 4,755,902

now → in 90 days · −SAR 489,546/mo

04 — Liability Register

Total Unpriced Balance Sheet Exposure

SAR 13.3M

Iron Law excess + compliance fines + idle rental carry + ghost fleet

Dispose Candidates

128 assets

SAR 9.7M annual carry

Iron Law — Annual Cost vs Market Value by Type

When annual cost exceeds market value: replace

■ Annual Cost ■ Market Value

TCO Dispose — Annual Carry Cost by Type

Age >7yr + cost >MV + idle/breakdown. Pure liability.

Mobile Crane (5 units, avg 14.0yr) SAR 726K/yr

Dumper (6 units, avg 14.3yr) SAR 698K/yr

Wheel Excavator (5 units, avg 15.0yr) SAR 630K/yr

Crawler Crane (3 units, avg 14.0yr) SAR 570K/yr

Boom Truck (5 units, avg 14.2yr) SAR 522K/yr

Telehandler (7 units, avg 14.1yr) SAR 509K/yr

Idle Rental Carry — By Supplier SAR 143K/mo total

Supplier	Idle Units	Monthly Waste	Annual Exposure	Action
Al Watan Machinery Rental	5	SAR 46K	SAR 551K	TERMINATE
Arabian Gulf Rentals	4	SAR 39K	SAR 466K	TERMINATE
Eastern Province Fleet Co.	3	SAR 22K	SAR 264K	TERMINATE
Hejaz Rental Services	3	SAR 20K	SAR 236K	TERMINATE
Safa Mobility Group	1	SAR 9K	SAR 111K	TERMINATE
Al Jazeera Vehicle Services	1	SAR 7K	SAR 86K	TERMINATE

05 — Cash Recovery Opportunities

Total 12-Month Recoverable (3 Levers)

SAR 31.9M

Liquidation capital + swap savings + Iron Law lease conversions

Optimised Projection Saves

SAR 3.0M

vs flat-line scenario

Lever 1 — Liquidate

SAR 27.7M

Capital recovery — sell bottom 15% fleet

+ Annual cost freed: SAR 12.6M

Eligible units: 182

Age >7yr + idle/breakdown. Authority: CFO + Asset Director sign-off.

Lever 2 — Terminate Idle Rentals

SAR 1.7M

Annual rental spend on idle units

Monthly recovery: SAR 143K

Idle rental units: 17

Contract review required. Notify suppliers 30 days prior per standard terms.

Lever 3 — Swap & Iron Law Exit

SAR 4.2M

Annual saving from swaps + Iron exits

Swap saving/mo: SAR 174K

Iron Law saving/mo: SAR 172K

Deploy 117 internal swap(s). Convert 341 Iron assets to lease. COO executes, CFO approves budget.

12-Month Cash Flow Projection — 3 Scenarios

Base: current burn + compliance front-load | Optimistic: swaps M3 + Iron exits M4 | Conservative: 3%/mo cost creep no action

■ Base ■ Optimistic ■ Conservative

Annual Base

SAR 187.9M

Annual Optimistic

SAR 184.9M

Annual Conservative

SAR 235.5M

06 — Supplier & Contract Intelligence

Monthly Spend by Supplier

Idle Waste Concentration by Supplier

Supplier Contractual Exposure Summary

Supplier	Units	Monthly Spend	Annual Commitment	Idle Units	Idle Waste/Mo	Risk
Arabian Gulf Rentals	57	SAR 525K	SAR 6.3M	4	SAR 39K	LOW
Najd Equipment Hire	59	SAR 507K	SAR 6.1M	0	—	LOW
Al Watan Machinery Rental	58	SAR 474K	SAR 5.7M	5	SAR 46K	LOW
Riyadh Fleet Solutions	47	SAR 433K	SAR 5.2M	0	—	LOW
Hejaz Rental Services	52	SAR 407K	SAR 4.9M	3	SAR 20K	LOW
Safa Mobility Group	47	SAR 401K	SAR 4.8M	1	SAR 9K	LOW
Eastern Province Fleet Co.	51	SAR 396K	SAR 4.7M	3	SAR 22K	LOW
Al Jazeera Vehicle Services	39	SAR 376K	SAR 4.5M	1	SAR 7K	LOW

⚑ Over-market rental detected: SAR 923K/year above benchmark rate across 43 units. Renegotiate at next contract renewal.

07 — Forward Exposure & Compliance Liability

Compliance Exposure

● TUV (78) SAR 1.2M

● MVPI (42) SAR 210K

● License (30) SAR 240K

Total SAR 1.6M

Ghost Fleet & Untracked Liabilities

Ghost Assets

418

Monthly Carry

SAR 2.6M

3-Month Audit Risk

SAR 7.9M

Lease Remaining

SAR 6.4M

Lease early termination liability: SAR 6.4M total remaining commitment across 552 lease assets.

30-Day Compliance Countdown

10 items

Sedan

TUV · Est. SAR 15K

EXP

EXPIRED

Bus

TUV · Est. SAR 15K

EXP

EXPIRED

Food Truck

MVPI · Est. SAR 5K

EXP

EXPIRED

Bulldozer

MVPI · Est. SAR 5K

EXP

EXPIRED

Crawler Crane

TUV · Est. SAR 15K

EXP

EXPIRED

Dumper

DRV-TUV · Est. SAR 8K

EXP

EXPIRED

Dyna Side Body

MVPI · Est. SAR 5K

EXP

EXPIRED

Dumper

DRV-TUV · Est. SAR 8K

EXP

EXPIRED

Manlift

TUV · Est. SAR 15K

EXP

EXPIRED

Dumper

DRV-TUV · Est. SAR 8K

EXP

EXPIRED

Lightyear AI

CFO — FINANCIAL INTELLIGENCE

✕

Ask me anything about the fleet — Iron Law flags, disposal candidates, swap opportunities, compliance exposure, or capital recovery strategy.

POWERED BY LIGHTYEAR INTELLIGENCE ENGINE