Landcorp - Crown Ownership Monitoring Unit

Note 36 – Risk Management (continued)Re-pricing Analysis 2009 Non-interest 0 – 6 6 – 12 One to Two to Greater thanEffective Total sensitive months months two years five years five yearsinterest rate $000 $000 $000 $000 $000 $000 $000Group 2009AssetsCash and Cash Equivalents 2.00% 30 – 30 – – – –Accounts Receivable 30,494 30,494 – – – – –Inventories 12,500 12,500 – – – – –Property intended for sale 29,268 29,268 – – – – –Livestock 218,050 218,050 – – – – –Forests 8,648 8,648 – – – – –Equity Accounted Investments 3,043 3,043 – – – – –Deferred Tax Asset 17,812 17,812 – – – – –Other Financial Assets 41,781 41,781 – – – – –Intangible Assets 2,227 2,227 – – – – –Property, Plant and Equipment 1,304,895 1,304,895 – – – – –LiabilitiesAccounts Payable and Accruals (22,957) (22,957) – – – – –Employee Entitlements 6.47% (6,628) (5,882) (746) – – – –Other Financial LiabilitiesBank loans 3.29% (181,800) – (181,800) – – – –Interest rate derivatives (7,306) – 151,199 – 3,480 (61,985) (100,000)Redeemable Preference Shares (90,408) (90,408) – – – – –Shareholders’ Funds (1,359,649) (1,359,649) – – – – –Re-pricing Profile – 189,822 (31,317) – 3,480 (61,985) (100,000)The interest rate on term borrowing as amended by off balance sheet financial instruments was 5.57% per cent.F – Sensitivity AnalysisFor the 2010 year, it is estimated that the following movements in risk factors would have resulted in the following effects on net profit beforetax. The effects are all estimated after the effect of any hedging instruments used in the year, but do not include any potential price changes infinancial instruments at balance date.The sensitivity analysis is based on exposures arising over the 2009/10 year, rather than exposures at balance date, as Landcorp’s operations arehighly seasonal and the effect of risk exposures and hedging instruments at balance date do not reflect those experienced during the year.Group Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Interest rate riskNet finance costs would have changed by:OCR higher/lower by 1% (310) / +310 (520) / +520 (310) / +310 (520) / +520Foreign currency riskRevenue would have changed by:NZD 1% higher/lower against USD (739) / +755 (595) / +607 (559) / +570 (564) / +575NZD 1% higher/lower against EUR (373) / +380 (427) / +436 (371) / +378 (425) / +433NZD 1% higher/lower against GBP (145) / +148 (155) / +159 (144) / +146 (154) / +157NZD 1% higher/lower against all currencies (1,178) / +1,202 (1,178) / +1,202 (1,073) / + 1,095 (1,142) / + 1,165Commodity price riskRevenue would have changed by:1% increase/decrease in all commodity prices +1,617 / (1,617) +1,560 / (1,560) +1,413 / (1,413) +1,398 / (1,398)93