Agribusiness Banking Chris Horan – Senior Partner Agribusiness, Waikato Nick Coster – Partner Agribusiness, Morrinsville Laura Brown – Senior Associate, Hamilton

Information Required by the bank Finance requirement – building additional shed. Financial analysis. Timing - when do key events take place? Operational outline – staffing, trading, product mix etc. Marketing strategy & target market. Key risks and mitigates. Contingency plan, what are our fall back options and what triggers them? Goals and aspirations, how do we measure success?

Strategic Capital Project – Building additional calf shed? What is required? Building 5 bay shed = $15,000 Machinery New Quad = $15,000 Other Sundry – additional feeders, troughs, hay = $5,000 Total loan required = $35,000

Strategic Capital Project – Shed build Statement of Position – Chris and Karin   Assets Liabilities Land & Buildings $ 1,000,000 Term Loan $ 600,000 Stock $ 25,000 Working Capital $ 20,000 Plant & Machinery $ 70,000 Investments/Shares $ 250,000 Sundry Total Assets $ 1,370,000 Total Liabilities $ 620,000 Total Equity $ 750,000 Total Equity % 54%

Debt Servicing – Break out exercise Assumptions: Current shed, 8 bays, capacity 130 calves per run, 2 runs per year. 5 bay shed capacity? How many more calves could I do? 10% death rate.

Outcomes of proposal: Should I do build the shed? Where could results improve? What are the threats to making it a success? What type of loan should I consider? Other questions?