UNDERSTANDING YOUR NEW STATEMENT

UNDERSTANDING YOUR NEW STATEMENT

Unit D, 1 Radcliffe Road Northwood Christchurch 8140 New Zealand Dear shareholder, 0800 200 600 help@farmlands.co.nz www.farmlands.co.nz Understanding your new statement We have now achieved a key merger benefit milestone by moving our operations onto a single accounting system. This was one of the key benefit areas highlighted in the business case to merge CRT and Farmlands. This means you will experience some changes - one of which is your new look Farmlands statement. We know any change to the presentation of billing information can be challenging. We are doing all that we can to minimise any impact on your business. We have produced this booklet to help make the transition to the new statement a little easier. Please take time to read it through and keep it on hand as a quick reference guide on what to expect and on who to contact for assistance. Key points around the change: There are changes in the format of the printed statement (explained in the following pages). Flexible soft copy options to enable you to get your information promptly in a format that you can import and arrange your billing data to your own preferences. This replaces the previous hard copy category analysis. Direct integration into common accounting software packages it is anticipated that the majority of integration will work from 1 November. However, there may be a few instances where customised interfaces will take slightly longer to put in place. A member of the Farmlands team will be in contact with you should this be the case. If you pay your Account by direct debit and make payments in advance of the direct debit being processed then you should notify the Customer Care team by emailing on help@farmlands.co.nz or phone 0800 200 600 prior to the 18th of the month in order to avoid overpaying. As always our Farmlands team would be pleased to assist you with any further questions that you may have as we move forward with these business improvements, helping us to optimise efficiencies in your co-operative. Thank you for your continued support. Kind regards, Brent Esler Chief Executive Lachie Johnstone Chairman Retail Card Finance Fuel Grain & Seed Horticulture Livestock Lubricants Nutrition Real Estate

UNDERSTANDING YOUR NEW STATEMENT Why change? In early October, Farmlands moved its operations onto one single accounting system. This change is the largest since the merger and is a big step towards long term savings through the System Consolidation programme. Your new statement The move to a single accounting system means shareholders will experience some changes one of which is the new Farmlands statement. This booklet aims to take you through the statement changes and provide you with a quick reference guide on what to expect and who to contact. When? Your new look statement came with this booklet and is dated 1 November 2014. This will show all your purchases and payments from 1 October 2014. Who can I contact? Please feel free to contact your local Farmlands store or contact us on: Phone: 0800 200 600 7.30am to 5.30pm Monday to Friday, 9.00am to 12.30pm Saturday Email: help@farmlands.co.nz Online: www.farmlands.co.nz Feedback / Future development We are continuously looking to improve our service and the information on our statements. Please feel free to provide any feedback to your local Farmlands store or email help@farmlands.co.nz

Your new look statement Rebate Journals/Adjustment Original number Rebate from prior month Queries/Held items Page 2 of 2 Page 1 of 2 Farmlands Statement Date Card Type Ref Goods Supplied 6/10/2014 1/10/2014 Modified Tax oice - IRD Approved Keep this tax invoice with all the attached supplier invoices for tax purposes Your GST calculation is on the Net Amount. Refer to attached (or previously received) invoices for further GST details to calculate and deduct GST component for non-business expenditure. Gross, Rebate and Net are GST Inclusive. A Shareholder RD 1 Rural Road 2034 3/10/2014 9/10/2014 9/10/2014 12/10/2014 27/10/2014 Date Card Type Ref Goods Supplied 20/10/2014 20/07/2014 24/10/2014 20/07/2014 16/09/2014 3/10/2014 26/10/2014 Crd 6123456 54000 7123456 1234569 C1234569 8123456 987654.10.7750 12345678 Rebates allowable over the last 12 months Share Capital Bunnings Gross Rebate Net (Incl GST) 4 x PLYWOOD CONST H3.2 2400X 9MM DD 3PLY 205.48 6.16 Farmlands Fuel Cust Ref: ASHARE 1,500 x Diesel 1,977.89 Order number: CHRIS 1 x BOOTS JOHN BULL COUGAR S11 175.00 18.08 1 x OVERTROUSER FORCE 11 XL 199.00 Total: Net Amt 355.92 GST 46.43 Order number: KIRST 1 x TUX ENERGY 25KG 76.50 1.91 Order number: KIRST - 1 x TUX ENERGY 25KG -76.50-1.91 Order number: WILL 12 x POLYWIRE 500M GALL G62007 589.32 66.77 Farmlands - Hastings (Purchaser: Bob Sharemilker) Order number: 12345 1 x PERSIL WASHING POWDER (2KG) 32.99 3.49 NCS Migration Vendor Order number: 1 x 2014 SUZUKI DR200SEL3 1 x 1 x 2014 SUZUKI DR200SEL3 Telecom (Refer oice Sent From Supplier) 122.24 4.89 NCS Migration Vendor No. 030001 Deferred Charge 5,695.40 Due 20 December 2014 Gross 84 Cumberland Street, Private Bag 1968, Dunedin 9054 Telephone (03) 477 9040 Facsimile (03) 477 9341 Email queries@farmlands.co.nz Freephone 0800 200 600 Website www.farmlands.co.nz GST No. 13-055-904 822 3,023 Member Id. 12345 Account No. 910412345 Statement Date 1 November 2014 Rebate Net (Incl GST) GST on Net Last Month's Balance 3,229.94 3229.94 0123456 Electronic 0987654 Cash Rebates Held 121212 Genesis Energy Ltd -101.00-101.00 13.17 Opening Balance 269.50 269.50 Due 121212 Genesis Energy Ltd 101.00 3.03 97.97 13.17 Jnl Default Interest 3.73 3.73 9110000 Ballance Agri- Nutrients Ltd Order number: 95010101 15 x Sulphurgain 15S 5,744.25 5744.25 749.25 15 x Freight/Stone Charge 207.00 207.00 27.00 Total: Net Amt 5,951.25 GST 776.25 4123456 Beaurepaires - BFT Wanganui 1 x PUNCTURE-TRACTOR UNDER 25 INCH 70.00 70.00 9.13 5123456 Bunnings 1 x IMPULSE NAIL GALV 50X2.87 (1000) B20557 128.63 34.97 93.66 12.22 6 x BOLT&NUT HEX HEAD M12X180 HDGALV 24.43 10.42 14.01 1.83 2 x FENCE RAIL 150X 40X4.8M RAD H3.2 RS 40.11 3.26 36.85 4.81 Total: Net Amt 144.52 GST 48.65 199.32 1977.89 156.92 199.00 74.59-74.59 522.55 29.50 117.35 15,065.57 151.07 14,914.50 GST on Net 26.00 257.99 20.47 25.96 9.73-9.73 68.16 3.85 675.00 15.30 Farmlands Statement Gross Rebate Amount Due Balance Overdue (Gross Amount) 15,065.57 151.07 14,914.50 269.50 is due 20 November 2014. Rebates/Choices are disallowed if payment is received after this date. For telephone & internet banking, Farmlands bank account is 02-0912-0025585-000. Use your name as Particulars and 9 digit Farmlands Account number as Code. Account No. 910412345 Statement Date 1 November 2014 Please detach and return with your payment. No receipt will be issued. To assist us, please detail on reverse any difference between your amount due and payment. For telephone & internet banking, Farmlands account is 02-0912-0025585-000. Use your name as 'Particulars' and 9 digit Shareholder Account number as 'Code'. Thanks for supporting your co-operative. 84 Cumberland Street, Private Bag 1968, Dunedin 9054 A Shareholder Account No. 910412345 Statement Date 1 November 2014 84 Cumberland Street, Private Bag 1968, Dunedin 9054 BALANCE: Telephone (03) 477 9040 Facsimile (03) 477 9341 Email queries@farmlands.co.nz Freephone 0800 200 600 Website www.farmlands.co.nz GST No. 13-055-904 Gross: Rebate: AMOUNT DUE: FARMLANDS14 15,065.57 151.07 14,914.50 Transactions in supplier order Address Bank Account 9 digit account number. Your original number now has 9104 in front. Amount to pay on 20 th

section will change We have changed our bank account to 02-0912-0025585-000. Don t worry if you have paid to the old account, as we would have transferred it. In the future please make sure you update your banking details for our new bank account and your new shareholder number. Your new shareholder number is the number starting with 9104 at the top of your new statement. For example, if your original shareholder number was 12345, the new number is 910412345. details and instructions are also included on the statement. The best way to make a payment and ensure all details are correct is by direct debit. Go to www.farmlands.co.nz/directdebit or phone 0800 200 600 to get a form. New bank account Total shares 12 months rebate You must pay on or before the 20 th to receive your rebates Amount to pay on 20 th Overdue amount Rebates allowable over the last 12 months Share Capital 822 3,023 Farmlands Statement Gross Rebate Amount Due Balance 15,065.57 151.07 14,914.50 Overdue (Gross Amount) 269.50 is due 20 November 2014. Rebates/Choices are disallowed if payment is received after this date. For telephone & internet banking, Farmlands bank account is 02-0912-0025585-000. Use your name as Particulars and 9 digit Farmlands Account number as Code. Direct debit If you already have an existing direct debit in place, it has been updated by the bank to reflect the new bank account, so you won t need to make any changes. Query section Should you question a purchase on your statement or there is an error, it will show at the top of your first page as a Held transaction type as outlined below. These are purchases you have queried with us by the 18th of the month and we are working to resolve. The amount to pay will be reduced until they are resolved. Queried purchases Date Card Type Ref Goods Supplied Last Month's Balance Gross Rebate Net (Incl GST) 3,229.94 3229.94 GST on Net 20/10/2014 0123456 Electronic 0987654 Cash Rebates 20/07/2014 Held 121212 Genesis Energy Ltd -101.00-101.00 13.17 Opening Balance 269.50 269.50 24/10/2014 Due 121212 Genesis Energy Ltd 101.00 3.03 97.97 13.17 Jnl Default Interest 3.73 3.73 20/07/2014 9110000 Ballance Agri- Nutrients Ltd Order number: 95010101 Statement categorisation Farmlands is also able to provide statements organised by categories, rather than date. These can be supplied electronically and will come with your original statement and a CSV file. If you are interested in receiving the electronic categorisation statement, email help@farmlands.co.nz or phone 0800 200 600.

Emailed statements and accounting software feeds Emailed statements If you currently receive your statement by email, you will continue to do so - but it will now include a separate category summary. This means you will receive three files: 1. Statement 2. Category summary 3. CSV file in Excel: the structure of your CSV file will remain the same during the transition. However, shareholders who have customised the importing of data will need to review the files. These customised options usually download to your accounting package automatically and there may be some small differences in some of the descriptions within the file. If you use these to perform specific account allocations, please be sure to review the CSV files. Accounting systems/electronic feeds 1. MYOB: There will be no change your transactional information will continue to feed into MYOB in its current format. 2. Cashmanager RURAL: No change you will continue to upload your transactional information manually via the CSV file emailed to you each month. 3. Other: No change, as other systems manually let you import the transactional information via the CSV file emailed to you each month. Future developments early next year we will be working on automating some of these feeds into Cashmanager RURAL, Xero and other software providers where appropriate. Emailed daily dispatch dockets These will continue in their current format, if requested. Please contact the Farmlands team on 0800 200 600 or help@farmlands.co.nz to arrange to have this set up. ACCOUNTING MADE EASY SMART CARD PARTNER SOLUTIONS THROUGH FARMLANDS Farmlands has negotiated Card Partner deals through accounting software businesses MYOB and Cashmanager RURAL. These new Card Partner offers provide shareholders with a great opportunity to do better business from the comfort of your own home office. MYOB MYOB supplies data feeds directly to your accounting software, as well as a smartphone app for sending invoices and chasing debtors and a feature called smart bills, which lets you kiss goodbye to the shoebox full of receipts. As a Farmlands Card Partner, MYOB is offering up to 30 percent* off MYOB accounting solutions. To find out more, visit www.myob.co.nz or call 0800 606 962. *30 percent discount applies to MYOB desktop range, providing the purchaser with 6 months free subscription services. Or purchase a subscription to AccountRight or MYOB Essentials and benefit from the online features and automatic updates and receive a 15 percent monthly discount on RRP. Cashmanager RURAL Cashmanager RURAL is focused on making business easier for you. With Farmlands, shareholders will receive premium products through Cashmanager RURAL and a minimum shareholder rebate of 2.5 percent, so you can spend more time taking care of the actual business. Cashmanager RURAL offers great budgeting, intelligent reporting and good livestock tracking. Call today on 0800 888 080 to find out your special shareholder pricing, or visit www.crssoftware.co.nz for a free trial. Farmlands is proud to keep bringing you the best deals to help your business. To find out more about great Card Partner deals in your area, visit www.farmlands.co.nz or call 0800 200 600.

Frequently asked questions Why are cash transactions my farm worker has made showing on my statement? These are now being shown on your statement as these purchases were made against your Account number by someone quoting your Account. Their name will appear with the purchase and the payment will appear at the top of the statement. An added benefit is these purchases now qualify for the annual Bonus Rebate. If you don t want these purchases to appear, please advise the person quoting your number. 20/10/2014 0123456 Electronic 0987654 Cash Rebates 987654 12 x POLYWIRE 500M GALL G62007 Farmlands - Hastings (Purchaser: Bob Sharemilker) 5 589.32 66.77 522.55 68.16 Shareholder cash purchase Order number: 12345 1 x PERSIL WASHING POWDER (2KG) 32.99 3.49 29.50 3.85 27/10/2014 In My deferred balance is higher than I expected, why is that? Deferred invoices are now being shown as Gross until they become due. When you pay, the rebate will be applied. O um x 2014 SUZU R200SEL3 1 x 1 x 2014 SUZUKI DR200SEL3 675.00 26/10/2014 12345678 Telecom (Refer oice Sent From Supplier) 122.24 4.89 117.35 NCS Migration Vendor No. 030001 Deferred Charge 5,695.40 Due 20 December 2014 15,065.57 151.07 14,914.50 15.30 Deferred balance (Gross) Why are there some transactions showing as a debit and a credit for the same amount showing on my statement? These are reversed sales transactions where the goods needed to be changed. 92 9/10/2014 1234569 9/10/2014 Crd C1234569 Order number: KIRST 1 x TUX ENERGY 25KG Order number: KIRST 76.50 1.91 74.59 9.73 Reversed sale transaction - 1 x TUX ENERGY 25KG -76.50-1.91-74.59-9.73 12/10/2014 81 ngs Why has my rebate not been applied to last month s statement? Your rebates have been disallowed, as we did not receive your payment on or before the 20th of the month. For any queries please contact your local store or email the Credit team on credit@farmlands.co.nz. Farmlands can suggest a range of payment options that will ensure your payments are received on or before the 20th of each month, so that you receive your monthly rebates. There are charges on my statement that aren t mine or I ve been overcharged for a purchase. What should I do? Please contact your local store on 0800 200 600 before the 18th of the month. They will arrange for the charge to be looked into. While this is happening, you do not need to pay the charge being queried but the remainder of the balance on your statement will still be due for payment. Direct debits will automatically be altered to reflect the queried amount, while payments by cash, cheque, credit card or internet banking will need to be altered manually by you. What happens if I have a direct debit in place but I make a manual payment? Please make the payment and contact Customer Care on 0800 200 600 so they can amend your direct debit amount. It is important you contact us prior to the 18th of the month to avoid overpaying your Account. Why is NCS Migration Vendor showing on my statement? Unfortunately when we changed systems we could not bring across the transaction description for items that were deferred and not purchased in our stores. For example, fertiliser or heavy machinery. The following illustrates these types of transactions. 1 x PERSIL WASHING POWDER (2KG) 32.99 3.49 29.50 3.85 27/10/2014.10.7750 NCS Migration Vendor Order number: 1 x 2014 SUZUKI DR200SEL3 1 x 1 x 2014 SUZUKI DR200SEL3 675.00 NCS Migration Vendor 26/10/2014 12345678 Telecom (Refer oice Sent From Supplier) 122.24 4.89 117.35 15.30

MAKE A STATEMENT, GO ELECTRONIC! From the October statement cycle, we re giving all Farmlands shareholders the option of receiving their statements electronically via email. The benefits for your farming business are: Faster - your electronic statements will arrive in your inbox sooner than a paper statement in your letterbox. Flexible - electronic statements provide you with three files: a PDF statement, a CSV file and a PDF categorisation summary that ll be organised not only by date but also category of purchase. More information - from November printed statements will no longer contain a category breakdown. Less cost - through less paper and printing costs. If you ve any questions, please contact us at help@farmlands.co.nz or on 0800 200 600. We re happy to help. How would you like to receive your Farmlands statements? Tell us your preference. I'd like to receive: Email Paper Both Account name: Shareholder number: Email: Landline: Mobile phone: Please return this form by email on help@farmlands.co.nz or fax 0800 278 329