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					ab                                                                                                                                                 Global Equity Research
                                                                                                                                                    New Zealand
                                                                                                                                                    Agriculture
 UBS Investment Research
                                                                                                                                                    12-month rating                                                                           Neutral
 NZ Farming Systems Uruguay Limited                                                                                                                                                                                                   Unchanged
                                                                                                                                                    12m price target                                               NZ$0.44/US$0.31
                                                                                                                                                                                                            Prior: NZ$0.51/US$0.36
 Interim result. Remain Neutral                                                                                                                     Price                                                                      NZ$0.40/US$0.28

    EBIT loss slightly better than expected                                                                                                         RIC: NZS.NZ BBG: NZS NZ

 Excluding livestock revaluations the EBIT loss of US$5.5m was cUS$1.5m better                                                                                                                                             17 February 2010
 than expected. Likewise the US$7.0m bottom line loss was better than expected.
                                                                                                                                                    Trading data (local/US$)
     Guidance for EBIT loss under $10m for FY                                                                                                       52-wk range                                            NZ$0.78-0.35/US$0.44-0.18
 Management has made no change to the guidance of a maximum EBIT loss of                                                                            Market cap.                                                        NZ$0.10bn/US$0.07bn
 US$10m for the FY (assumes 25c milk price). We have assumed 28c for 2H and                                                                         Shares o/s                                                                                   244m (ORD)
 so an EBIT loss of $8.7m for FY10. Capex estimates to complete the development                                                                     Free float                                                                                                            84%
 are basically unchanged but NZS mentioned the possibility of a third bond issue                                                                    Avg. daily volume ('000)                                                                                               85
 (after the second we expect will take place in the next six months).
                                                                                                                                                    Avg. daily value (NZ$m)                                                                                                0.0
     Remain Neutral
                                                                                                                                                    Balance sheet data 06/10E
 US milk price futures indicate further modest milk price gains over the next 12
                                                                                                                                                    Shareholders' equity                                                                                NZ$0.22bn
 months and if this occurs we expect it will help sentiment, as will further
                                                                                                                                                    P/BV (UBS)                                                                                                            0.4x
 development progress. However, NZS is 4-5 years away from maturity and so we
 believe the market will continue to apply a large discount to theoretical value.                                                                   Net Cash (debt)                                                                               (NZ$0.07bn)

    Valuation: DCF US$0.34 (NZ$0.63)                                                                                                                Forecast returns

 Our current DCF valuation uses a milk price of US$0.26 /ltr for FY10 (2H                                                                           Forecast price appreciation                                                                                  +10.0%
 US$0.28), rising to a long-run price of US$0.32 /ltr by FY12. Valuation is very                                                                    Forecast dividend yield                                                                                         0.0%
 sensitive to the uncertain milk price assumption. Our price target is based on a                                                                   Forecast stock return                                                                                        +10.0%
 30% discount to our valuation.                                                                                                                     Market return assumption                                                                                        7.7%
                                                                                                                                                    Forecast excess return                                                                                       +2.3%

                                                                                                                                                    EPS (UBS, NZ$)
                                                                                                                                                                                                           06/10E                                                 06/09
                                                                                                                                                                                      From                     To                     Cons.                      Actual
                                                                                                                                                    H1                                (0.05)                (0.04)                        -                       (0.06)
                                                                                                                                                    H2E                               (0.03)                (0.03)                        -                       (0.22)
                                                                                                                                                    06/10E                            (0.08)                (0.07)                        -
 Highlights (NZ$m)                                       06/08                06/09              06/10E              06/11E               06/12E    06/11E                            (0.05)                (0.05)                        -
 Revenues                                                  10.0                 25.9                31.9                41.5                61.8
 EBIT (UBS)                                              (10.5)               (59.0)              (12.2)               (2.9)                29.4    Performance (NZ$)
 Net Income (UBS)                                        (10.4)               (69.5)              (18.0)              (12.4)                  5.6   2.50
                                                                                                                                                             Stock Price (NZ$)                                                                Rel. NZSE 50 Index
                                                                                                                                                                                                                                                                           160

 EPS (UBS, NZ$)                                          (0.04)               (0.28)              (0.07)              (0.05)                0.02    2.00
                                                                                                                                                                                                                                                                           140
                                                                                                                                                                                                                                                                           120
 Net DPS (UBS, NZ$)                                        0.00                 0.00                0.00                0.00                0.02    1.50                                                                                                                   100
                                                                                                                                                                                                                                                                           80
 Profitability & Valuation                       5-yr hist av.                06/09              06/10E              06/11E               06/12E    1.00                                                                                                                   60
                                                                                                                                                                                                                                                                           40
 EBIT margin %                                               -               -228.1                -38.3                -7.1                47.6    0.50
                                                                                                                                                                                                                                                                           20
 ROIC (EBIT) %                                               -                (21.9)                (4.2)              (1.0)                  8.5   0.00                                                                                                                   0
                                                                                                                                                           01/07

                                                                                                                                                                   04/07

                                                                                                                                                                           07/07

                                                                                                                                                                                   10/07

                                                                                                                                                                                           01/08

                                                                                                                                                                                                   04/08

                                                                                                                                                                                                           07/08

                                                                                                                                                                                                                   10/08

                                                                                                                                                                                                                              01/09

                                                                                                                                                                                                                                      04/09

                                                                                                                                                                                                                                                07/09

                                                                                                                                                                                                                                                         10/09

                                                                                                                                                                                                                                                                  01/10




 EV/EBITDA (core) x                                          -                  -3.9               -13.3               40.9                   2.9
                                                                                                                                                                           Price Target (NZ$) (LHS)                        Stock Price (NZ$) (LHS)
 PE (UBS) x                                                  -                   NM                  NM                  NM                 17.4                           Rel. NZSE 50 Index (RHS)

 Net dividend yield %                                        -                   0.0                  0.0                0.0                  4.6   Source: UBS
 Source: Company accounts, Thomson Reuters, UBS estimates. (UBS) valuations are stated before goodwill, exceptionals and other special items.                                                 www.ubs.com/investmentresearch
 Valuations: based on an average share price that year, (E): based on a share price of NZ$0.40 on 16 Feb 2010 23:38 EST


 Wade Gardiner
 Analyst
 wade.gardiner@ubs.com
 +64-9-913 4864




 This report has been prepared by UBS New Zealand Ltd
 ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 5.
 UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
 have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making
 their investment decision.
NZ Farming Systems Uruguay Limited 17 February 2010


FY10 guidance
NZS has retained its earnings guidance for a maximum EBIT loss of US$10m
(based on 25c milk price average). This appears conservative given the higher
prices achieved over the past few months of around 29 cents.

Capex and funding
NZS has guided to further capex of US$55m to complete the development of the        Capex guidance materially unchanged
farms, with most spent in the FY11 and FY12 years. This is in line with
previous capex guidance. Operating losses and working capital are in addition
to this and will need to be funded also.

NZS is planning a second bond issue – likely to again be US$30m, and                A second bond issue likely, and maybe
potentially a third bond issue if needed. In addition NZS is progressing plans      a third as well
outlined earlier for some land sales and possibly sale and leaseback of some
farms.

Our model assumes land sales of 5,500 hectares including the ~2,000 sold in
October 2009. Proceeds from this sale were US$6.85m, or close to US$3400
per hectare.

Maturity
At maturity (2014/15) NZS expects 940 kg of milk solids per hectare and EBIT        Maturity: EBIT US$35 – 40m
of US$35 – 40m. Again this assumes a 25c milk price.

Although the milk price assumption appears conservative based on current
prices, the production rate and operating cost assumptions needed to achieve that
level of EBIT create a huge level of uncertainty and risk. While they appear
conservative based on NZ farms, NZS has yet to achieve close to these levels
overall. The monitor farm, “Menafra”, provides some comfort as to what can be
achieved and appears close to the targets but NZS admitted this farm is likely to
be better than the average that can be achieved across the whole portfolio.

Assuming EBIT of $35 – 40m, then taking into account time value, management         We estimate the current share price
contract value, and remaining capex, we estimate the current share price implies    assumes 7.0x EBIT at maturity
an EBIT multiple at maturity of c7.0x. Prima facie this appears reasonable or
even low, with an implied FCF yield of c14%. However in our view it arguably
does not take into account the not insignificant risks in the company’s
assumptions.

Also with the coupon on the bonds ramping up to 15% as the milk price rises
some of the potential upside from any milk prices higher than 25c will be
transferred to bond holders at the expense of shareholders. It is not until the
coupon rate reaches its cap will shareholders be fully rewarded for higher milk
prices. From previous discussions with management we believe this cap is
reached at around 30 – 32c /ltr.

Valuation
Our DCF valuation is very sensitive to the milk price assumption. Our NZ$0.63
valuation for NZS assumes an increase in milk price from the current levels to a
long-run price of 32c by FY12. We estimate every 1c fall in the long-run milk
assumption lowers our DCF valuation by NZ$0.08.


                                                                                                                     UBS 2
NZ Farming Systems Uruguay Limited 17 February 2010


At 25c milk our valuation is just NZ$0.09 per share (we have higher operating
cost assumptions than NZS has assumed and so a lower EBIT level than US$35
– 40m).

Given our concerns over remaining development risks and the sensitivity of our
valuation we have applied a 30% discount to our valuation to set our NZ$0.44
price target. We have retained a Neutral rating.

Forecast changes
FY10

Management has made no change to the guidance of a maximum EBIT loss of
US$10m for FY10 (assumes 25c milk price). We have assumed 28c for 2H and
so an EBIT loss of US$8.7m for FY10. Due to changes in our interest cost
estimates our NPAT forecast has improved from a loss of US$13.9m
(NZ$20.1m) to a loss of US$12.8m (NZ$18.0m).

FY11 and FY12

Likewise we have made small changes to milk price and operating cost
assumptions for FY11 and FY12, plus some changes to funding and interest
costs. This sees our estimate for FY11 NPAT move from a loss of US$8.1
(NZ$11.6m) to a loss of US$8.7m (NZ$12.4m).

For FY12 we forecast a gain of US$3.8m (NZ$5.6m) vs previous estimate of
US$6.3m (NZ$9.2m).

Table 1: P&L summary

US$m                                                           UBSe

                                      1H 09   1H 10   Var %    1H 10   FY09    FY10E    FY11E

Milk revenue                            6.6    10.2   54.5%      9.3   10.0     20.6     27.8

Sale of cattle                          1.4     0.7   -47.9%     1.2    4.3      2.1      1.2

Other revenue                           0.1     0.0   -81.8%     0.0    1.5      0.1      0.1

Total operating revenue                 8.1    10.9   35.5%     10.5   15.8     22.7     29.1

Livestock revaluations                  0.2     0.8              1.5   -14.0     0.8      2.8

Total revenue                           8.3    11.7   40.8%     12.0    1.8     23.5     32.0

Operating costs                       -17.0   -14.9   -12.5%   -16.4   -35.3    -29.0    -30.6

EBITDA                                 -8.7    -3.2   -63.3%    -4.3   -33.5     -5.5     1.4

Dep / amort                            -0.8    -1.6   89.2%     -1.3    -2.4     -3.2     -3.4

EBIT                                   -9.5    -4.8   -50.1%    -5.6   -35.9     -8.7     -2.1

EBIT excl livestk revals               -9.8    -5.5   -43.6%    -7.1   -21.9     -9.5     -4.9

Net interest exp                       -1.4    -2.5   72.8%     -3.1    -6.3     -4.0     -6.6

Abnormal items                          0.0     0.0              0.0    -3.6     0.0      0.0

Tax (exp) / ben                         2.1     0.2   -88.8%    -0.1    -0.1     -0.1     -0.1

Reported NPAT                          -8.9    -7.0   -21.6%    -8.8   -45.9    -12.8     -8.7

NPAT (ex abnormals, livestk revals)    -9.1    -7.7   -15.3%   -10.3   -28.3    -13.6    -11.5

Source: NZS, UBS estimates




                                                                                                 UBS 3
  NZ Farming Systems Uruguay Limited 17 February 2010


NZ Farming Systems (NZS.NZ)
MARKET INFORMATION                                                                                COMPANY DESCRIPTION
Rating:                                                                          Neutral          NZ Farming Systems Uruguay Limited (NZS) is a dairy farm development
Price (as of 16-Feb-10): (NZ$)                                                      0.40           PROFILE-
                                                                                                  business. NZS owns 32,000 hectares and is developing 60% of the acreage into
Price Target (12 months): (NZ$)                                                     0.44          dairy units. Milk will be supplied to the local Uruguayan cooperative Conaprole,
Shares outstanding: (m)                                                            244.2          which pays for the milk in US dollars on a per-litre basis. Management fees are
Market Capital (NZ$ m):                                                             97.7          charged to NZS under a contract on the basis of asset values, which are subject
Avg. daily turnover (NZ$ m):                                                         0.0          to local valuation. As this is a development, we anticipate a lag between fees
Year end:                                                                           June          being charged upfront and the delivery of cash earnings.
Website:                                                              www.nzfsu.co.nz
Major Shareholders:                             PGG Wrightsons, Rural Portfolio Invstmt,
INVESTMENT SUMMARY                                                                                KEY RATIOS
(NZ$ m)                                        2009        2010E         2011E          2012E                                                 2009         2010E         2011E        2012E
Net profit [reported]                         (81.4)        (18.0)       (12.4)             5.6   Profitability (%)
Net profit [adjusted]                         (69.5)        (18.0)       (12.4)             5.6   Revenue growth                             157.6           23.2          30.0         49.1
EPS [reported]                                (0.33)        (0.07)       (0.05)           0.02    EBITDA margin                                <0             <0            4.8         57.2
EPS [adjusted, diluted]                       (0.28)       (0.07)        (0.05)           0.02    EBIT margin                                  <0             <0            <0          47.6
EPS Growth (%)                                      -             -            -              -   Effective tax rate                           0.0            0.0           0.0         30.0
PER [adjusted]* (x)                            (3.3)         (5.4)         (7.9)          17.4    Return on Inv Cap (post-tax)                 <0             <0            <0           6.0
Dividend                                        0.00          0.00         0.00           0.02    Return on Equity                             <0             <0            <0           2.6
Payout ratio, [EPS adj.] (%)                       -             -             -            80
Dividend Yield [Net]* (%)                        0.0           0.0           0.0            4.6   Capital Structure
Shares [period-avg, basic] (m)                244.2         244.2         244.2          244.2    Net Debt / EBITDA (x)                         <0            <0            8.6          0.2
Book value per share                           1.14          0.90          0.86           0.90    Net Debt / Common equity (%)                  8.2          32.5          51.2         74.2
Price to Book* (x)                               0.8           0.4          0.5            0.4    Net Debt / Core EV* (x)                       0.1           0.7           1.3          1.6
Equity Free Cash Flow Yield (%)              (95.2)        (56.9)        (31.8)         (35.7)    Capex / Depreciation (x)                     >10            2.7           3.8          6.8
Franking (%)                                       0             0             0              0   EBIT / Net Interest (x)                         -             -             -          1.4
PROFIT AND LOSS                                                                                   PROFIT AND LOSS [HALF YEAR]
(NZ$ m)                                       2009         2010E         2011E          2012E     (NZ$ m)                                    1H 09         2H 09         1H 10        2H 10E
Revenue                                        25.9           31.9         41.5            61.8   Revenue                                      13.2          12.7          15.4         16.5
EBITDA [adjusted]                            (55.1)          (7.7)           2.0           35.4   EBITDA [adjusted]                          (14.4)        (40.7)           0.0           0.0
Depreciation & Amortisation                   (3.9)          (4.5)         (4.9)          (6.0)   Depreciation & Amortisation                 (1.4)         (2.6)         (2.2)         (2.3)
EBIT [adjusted]                              (59.0)         (12.2)         (2.9)           29.4   EBIT [adjusted]                            (15.7)        (43.3)         (6.7)         (5.5)
Net interest                                 (10.3)          (5.6)         (9.4)         (21.4)   Net interest                                (2.3)         (8.0)         (3.5)         (2.2)
Income from associates                          0.0            0.0           0.0            0.0   Income from associates                        0.0           0.0           0.0           0.0
Other non-operating items                       0.0            0.0           0.0            0.0   Other non-operating items                     0.0           0.0           0.0           0.0
Profit before tax [adj]                      (69.3)         (17.8)       (12.3)             8.0   Profit before tax [adj]                    (18.1)        (51.2)        (10.2)         (7.7)
Tax on pre-abnormal profit                    (0.2)          (0.1)         (0.1)          (2.4)   Tax on pre-abnormal profit                    3.4         (3.6)           0.3         (0.5)
Minority Interests                              0.0            0.0           0.0            0.0   Minority Interests                            0.0           0.0           0.0           0.0
Dividends (preferred)                           0.0            0.0           0.0            0.0   Dividends (preferred)                         0.0           0.0           0.0           0.0
Net Profit [adjusted]                        (69.5)         (18.0)       (12.4)             5.6   Net Profit [adjusted]                      (14.7)        (54.8)         (9.9)         (8.1)
Abnormal Gain/(Loss) after Tax               (11.8)            0.0           0.0            0.0   Abnormal Gain/(Loss) after Tax                0.0        (11.8)           0.0           0.0
Net Profit [reported]                        (81.4)         (18.0)       (12.4)             5.6   Net Profit [reported]                      (14.7)        (66.6)         (9.9)         (8.1)
BALANCE SHEET                                                                                     ENTERPRISE VALUE*
(NZ$ m)                                       2009         2010E          2011E         2012E     (NZ$ m)                                     2009         2010E         2011E        2012E
Cash & equivalents                              6.0           16.5          24.5           7.8    Market capital                             230.2           97.7           97.7        97.7
Accounts receivable                            10.0           12.3           8.9          13.2    Net debt / (cash) [avg]                    (13.2)           4.9         (16.9)         5.7
Inventory                                       2.6            3.2           4.2           6.2    Estimated share buy backs                     0.0           0.0            0.0         0.0
Fixed assets                                 286.0          245.6          255.7         287.4    Minorities                                    0.0           0.0            0.0         0.0
Intangibles                                     0.0            0.0           0.0           0.0    Pension provisions                            0.0           0.0            0.0         0.0
Investments                                     6.9            5.9           6.0           6.1    Total Enterprise Value                     217.0          102.6           80.8       103.4
Other assets                                   43.4           45.3          57.1          84.0    (Non-core assets)                             0.0           0.0            0.0         0.0
Total Assets                                 354.9          328.9          356.3         404.7    Core Enterprise Value                      217.0          102.6           80.8       103.4
Accounts payable                               45.8           18.9          11.5          11.9    Core EV Ratios
Short & long term debt                         28.8           88.0         132.2         170.8    EV / Sales                                    8.4           3.2            1.9         1.7
Provisions & other                              2.5            2.2           2.2           2.2    EV / EBITDA                                   <0            <0            >30          2.9
Preferred securities                            0.0            0.0           0.0           0.0    EV / EBIT                                     <0            <0             <0          3.5
Total liabs & pref shares                      77.1         109.1          145.8         184.9    EV / OpFCF [post-tax]                         <0            <0            >30          2.9
Minorities                                      0.0            0.0           0.0           0.0    EV / Invested Capital                         0.8           0.4            0.3         0.3
Common equity                                277.7          219.8          210.5         219.8    DIVISIONAL BREAKDOWN
Total liabilities & equity                   354.9          328.9          356.3         404.7    (NZ$ m)                                     2009         2010E         2011E        2012E
Net cash / (debt)                            (22.8)         (71.5)       (107.7)       (163.0)    Total Revenue                                25.9           31.9         41.5         61.8
                                                                                                  EBIT                                       (59.0)         (12.2)         (2.9)        29.4
CASH FLOW
(NZ$ m)                                       2009         2010E         2011E          2012E
Operating income [EBIT, UBS]                 (59.0)         (12.2)         (2.9)           29.4
Depreciation & Amortisation                     3.9            4.5           4.9            6.0
Net change in working capital                  15.4         (29.8)         (5.0)          (5.9)
Other (operating)                               0.0            0.0           0.0            0.0
Pre-tax op cash flow                         (39.7)         (37.5)         (3.0)           29.4
Interest (paid) / received                    (3.5)          (5.6)         (9.4)         (21.4)
Tax paid                                      (0.5)          (0.1)         (0.1)          (2.4)
Other                                           0.0            0.0           0.0            0.0
Operating cash flow                          (43.6)         (43.3)       (12.5)             5.6
Capital expenditure                          (42.9)         (12.3)       (18.6)          (40.5)
Free cash flow                               (86.5)         (55.6)       (31.1)          (34.9)
Net (acquisitions) / disposals                  0.0            0.0           0.0            0.0
Dividends paid (Common)                         0.0            0.0           0.0            0.0
Shares issued/(repurchased)                     0.0            0.0           0.0            0.0
Source: UBS estimates, * Historical valuations are based on an average share price for the period. Current & future valuations are based on a share price of NZ$0.40 on 16-Feb-2010




                                                                                                                                                                                      UBS 4
NZ Farming Systems Uruguay Limited 17 February 2010




   NZ Farming Systems Uruguay Limited

NZ Farming Systems Uruguay Limited (NZS) is a dairy farm development
business. NZS owns 32,000 hectares and is developing 60% of the acreage into
dairy units. Milk will be supplied to the local Uruguayan cooperative Conaprole,
which pays for the milk in US dollars on a per-litre basis. Management fees are
charged to NZS under a contract on the basis of asset values, which are subject
to local valuation. As this is a development, we anticipate a lag between fees
being charged upfront and the delivery of cash earnings.




   Statement of Risk

This is a farming business in the early part of development with mature
production not expected until 2012 on the current land bank. Management fees
currently incentivise asset growth while farm performance is 3 years from
delivery. Earnings are sensitive to global milk prices upon which the company
has no control. Climatic risks such as drought are a threat to the business.
Business operations are located in Uruguay, creating staff operational risk.

Distributed by UBS New Zealand Ltd. An investment adviser and investment
broker disclosure statement is available on request and free of charge by writing
to PO Box 45, Auckland, NZ.



   Analyst Certification

Each research analyst primarily responsible for the content of this research
report, in whole or in part, certifies that with respect to each security or issuer
that the analyst covered in this report: (1) all of the views expressed accurately
reflect his or her personal views about those securities or issuers; and (2) no part
of his or her compensation was, is, or will be, directly or indirectly, related to
the specific recommendations or views expressed by that research analyst in the
research report.




                                                                                       UBS 5
NZ Farming Systems Uruguay Limited 17 February 2010


Required Disclosures

This report has been prepared by UBS New Zealand Ltd, an affiliate of UBS AG. UBS AG, its subsidiaries, branches
and affiliates are referred to herein as UBS.

For information on the ways in which UBS manages conflicts and maintains independence of its research product;
historical performance information; and certain additional disclosures concerning UBS research recommendations,
please visit www.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is
not a reliable indicator of future results. Additional information will be made available upon request.

UBS Investment Research: Global Equity Rating Allocations
                                                                                                   1                                2
 UBS 12-Month Rating                  Rating Category                                    Coverage                      IB Services
 Buy                                  Buy                                                      48%                             40%
 Neutral                              Hold/Neutral                                             40%                             35%
 Sell                                 Sell                                                     13%                             26%
                                                                                                   3                               4
 UBS Short-Term Rating                Rating Category                                    Coverage                      IB Services
 Buy                                  Buy                                              less than 1%                            17%
 Sell                                 Sell                                             less than 1%                            67%
1:Percentage of companies under coverage globally within the 12-month rating category.
2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within
the past 12 months.
3:Percentage of companies under coverage globally within the Short-Term rating category.
4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided
within the past 12 months.

Source: UBS. Rating allocations are as of 31 December 2009.
UBS Investment Research: Global Equity Rating Definitions
 UBS 12-Month Rating                 Definition
 Buy                                 FSR is > 6% above the MRA.
 Neutral                             FSR is between -6% and 6% of the MRA.
 Sell                                FSR is > 6% below the MRA.
 UBS Short-Term Rating               Definition
                                     Buy: Stock price expected to rise within three months from the time the rating was assigned
 Buy
                                     because of a specific catalyst or event.
                                     Sell: Stock price expected to fall within three months from the time the rating was assigned
 Sell
                                     because of a specific catalyst or event.




                                                                                                                               UBS 6
NZ Farming Systems Uruguay Limited 17 February 2010


KEY DEFINITIONS
 Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12
months.
 Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a
forecast of, the equity risk premium).
 Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are
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 Short-Term Ratings reflect the expected near-term (up to three months) performance of the stock and do not reflect any
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Equity Price Targets have an investment horizon of 12 months.

EXCEPTIONS AND SPECIAL CASES
UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management,
performance record, discount; Neutral: Neutral on factors such as structure, management, performance record, discount; Sell:
Negative on factors such as structure, management, performance record, discount.
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debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating.
When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece.



Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not
registered/qualified as research analysts with the NASD and NYSE and therefore are not subject to the restrictions contained in
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follows.
UBS New Zealand Ltd: Wade Gardiner.


Company Disclosures
 Company Name                                         Reuters   12-mo rating Short-term rating            Price        Price date
 NZ Farming Systems Uruguay
                                                      NZS.NZ         Neutral              N/A          NZ$0.40       16 Feb 2010
 Limited
Source: UBS. All prices as of local market close.
Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing
date



Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report.




                                                                                                                              UBS 7
NZ Farming Systems Uruguay Limited 17 February 2010


NZ Farming Systems Uruguay Limited (NZ$)
                                                                                                       Price Target (NZ$)                               Stock Price (NZ$)
            2.50

            2.00

            1.50

            1.00

            0.50

            0.00
                   01-Jan-05




                                                                   01-Jan-06




                                                                                                                    01-Jan-07




                                                                                                                                                                       01-Jan-08




                                                                                                                                                                                                                       01-Jan-09




                                                                                                                                                                                                                                                                       01-Jan-10
                               01-Apr-05

                                           01-Jul-05

                                                       01-Oct-05




                                                                               01-Apr-06

                                                                                           01-Jul-06

                                                                                                        01-Oct-06




                                                                                                                                01-Apr-07

                                                                                                                                            01-Jul-07


                                                                                                                                                           01-Oct-07




                                                                                                                                                                                   01-Apr-08

                                                                                                                                                                                               01-Jul-08


                                                                                                                                                                                                           01-Oct-08




                                                                                                                                                                                                                                   01-Apr-09

                                                                                                                                                                                                                                               01-Jul-09

                                                                                                                                                                                                                                                           01-Oct-09
            Buy
         Neutral
       No Rating


Source: UBS; as of 16 Feb 2010




                                                                                                                                                                                                                                                                                   UBS 8
NZ Farming Systems Uruguay Limited 17 February 2010




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