What is a discount scheme?
• Suidwes Landbou pays its customers an annual incentive equal to 80% of the company’s profit before tax.
• The rebate per customer is determined by the business done with Suidwes Landbou on the basis of the profit per transaction.
• The rebate is paid in two parts, namely;
– 20% in cash; and
– 80% in the form of preferred shares in the Company.

Why a rebate scheme?
• The shareholders profile of Suidwes Landbou matures.
• Young farmers do not invest in primary agriculture with the same risks.
• It offers the opportunity for young farmers to aquire shares in an agricultural company without buying shares.
• The long-term result of the scheme is that the biggest clients will be the largest shareholders and therefore could control the Company.

Benefits of the scheme:
The scheme gives young farmers the opportunity to have a share in an agricultural company without paying for it in cash.
• The scheme enables Suidwes Landbou to become an extension of the farming operation.
• Suidwes shares automatically improves the client’s balance sheet.
• The client aquires ‘pension’, which also acts as a first-class security for financing.
• The largest client has the largest influence in the company.

Who qualifies for the rebate scheme?
• Any bona fide farmer who is a client of Suidwes Landbou will annually qualify for a rebate.
• A bona fide farmer is any farmer who farms within the borders of the RSA and is registered for VAT under Appendix 7 of the Income Tax Act.

Highlights of the rebate scheme:
• The rebate is calculated annually at the end of the financial year on 30 April.
• Twenty percent of the rebate is paid in cash, while the rest is used to acquire shares in the company.
• The rebates of clients who are not ordinary shareholders of Suidwes Landbou will be applied to aquire the minimum number of ordinary shares, ie 40,000 shares.
• Once a farmer aquired 40 000 ordinary shares in Suidwes Landbou, preferred shares will be issued at R5.00 per share.
• The preferred shares are redeemed upon retirement, death or after 15 years, against the issued value unless settled in full before the 15-year period has expired, in which case the price is discounted.

Where is the rebate aquired?
• The scheme applies to Suidwes Landbou’s financing, trade, mechanisation and grain storage as well as handling activities.

More detail about the scheme can be obtained from any business unit manager of Suidwes Landbou or:
• Derék Linde by 018 581 1000 of