Yeastie Boys Love Money

02

DEAR POTENTIAL YEASTIE BOYS AND GIRLS,

Six years ago we set out on a journey that saw us break the conventional models of

brewing and traditional beer styles. With the support of people like you we have not

only survived but thrived.

Now things are getting even more exciting, because in 2015 we are making a major

play into the northern hemisphere – establishing the brewing and distribution

channels that will allow us to capitalise on the demand our unique beers have

generated there over the past few years.

This is a pretty big move, and we’ve had to think hard about what we want and how

we wish to achieve it. We want to grow Yeastie Boys in a way that retains the ideas

and energy of a start-up, but has the wisdom and manners of a learned gentleman.

We want to be as excited in five years’ time as we were at day one… as we are right

now. And that’s why we want you to become a part of Yeastie Boys.

Our supporters have been asking us for years if there’s a way they can help us grow.

Well, now there is. We’re looking for investors, but not traditional investors who

seek to buy in with their exit plan already mapped out. We’re looking for people

who wonder where (and how far) we can go if we have the map to the future and no

predetermined off-ramp in mind.

Equity crowdfunding is an obvious choice for Yeastie Boys. Not only will it enable

the people who love our beer and believe in our capabilities to be part of Yeastie

Boys’ future, it will also support Anna Guenther and the team at PledgeMe. Like us

PledgeMe have disrupted the long-accepted means of business in their own industry

and have been instrumental in bringing about change.

Yeastie Boys stand for change. Please come stand with us as we land in the

Northern Hemisphere.

SlÁinte mhath

Stu McKinlay Sam Possenniskie

Founder & Creative Director Founder & Directive Creator

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Yeastie Boys in a nutshell

Invited to Wetherspoon International Real Ale Festival 2 times (the only NZ brewery to do so)

145% revenue growth Forecast in 2015/16 from UK operation

900+ British pubs served Yeastie Boys

beer in 2014(and again in 2015)

More than

1,000,000British customers exposed to Yeastie

Boys as a part of Wetherspoon

international Real Ale festival in 2014 (and again in 2015)

since inception

0.5 full time staff to August 2014

11countries supplied in 2014

6further countries lined

up for 2015

$666k turnover

2014/15

most prestigious international awards by a New Zealand brewery in the last decade

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04

Yeastie Boys in a nutshell 3Share Offer Overview 6 The opportunity 6

The challenge 7

Return on investment 9 Rewards 9

Returns 10

Share types 11

The Yeastie Advantage 12 The New World remix 12

Mind-bending innovation 12

Puffed chests, gold medallions 13

Lean, nimble and sticking to our knitting 15

More press per litre 15

Collaborative in the morning, competitive in the afternoon 15

Upstanding business citizens 16

Strategic Plan 18 UK Production 18 United Kingdom 18

Scandinavia 19

Continental Europe 19

USA, Eastern seaboard 19

New Zealand and Pacific Rim 21 New Zealand 21

Australia 21

China 21

Hong Kong 21

Japan 22

Southeast Asia 22

Canada 22

Central and South America 22

USA, Western seaboard 22

Yeastie People 23 The Boys 23

Production partners 24

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Collaborators 24

Management & Board of Directors 26

Advisory Board 27

Product Range 28 Sessionables 28

Classics 28

Annuals 29

Seasonals 29

Can the Bottle 30

Distributors 31 Agents 32

Suppliers 33

Compliance 33

Other support 33

Sponsorship 33

The Craft Beer Market 35 Yeastie Boys market 35 Annual growth 35

Market forecast 36

USA market comparison 37

Craft Beer is not a bubble 39

Financials 41 Share Offer 41

Financial Position 43 Loans 43

Audit 43

Future finance 44

Risks 44

Additional info 48 Other disclosures 48

About PledgeMe 48

Legal information 48

Contacts 49

Appendix - Financials 50

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Share Offer OverviewThe opportunityThey savour our wine, they eat our produce, and the lucky ones even hop on an aeroplane to visit the source – that wild, Hobbity country so very far away but frequently voted the world’s best travel destination.

Now it’s time for New Zealand beer to shine in the United Kingdom and Europe.

Yeastie Boys has already had some time in the limelight. In early 2014 our flagship Gunnamatta was served in more than 900 pubs across England, Scotland and Wales as a part of the Wetherspoon International Real Ale Festival. Around a million people visited those pubs during that fortnight, and many of them told us they want more.

We’re more than happy to oblige, so we’ve accepted an invitation to brew another beer for this year’s festival, in May. We also recently sent a consignment of our New Zealand brewed beer to Britain, which was pre-sold before it was halfway there. We’ve followed up with a second and third shipment that are on the ocean waves as we write this.

To truly open up the taps, though, and create a sustainable place in the European market, we need to brew our beer over there.

OUR PLAN: TO BECOME THE

LEADING NEW ZEALAND

BEER IN UK AND EUROPE.

We intend sticking to our current model – brew the best beer we can and forge the right path to market to ensure it gets to consumers in the best possible condition.

So, while other New Zealand breweries focus on producing beer in New Zealand, and exporting to markets on the other side of the world, we will grow our business by producing beer in Europe for Europe.

This model removes significant costs in moving product (beer, air and glass) and the lag between brewery and consumer. In total, we expect to reduce costs by 25%, and delivery time by 6–8 weeks.

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We’re unashamedly pinching multinational methods to give the craft beer drinker a better experience. After all, the magic of our beer is in the bottle or the keg, not in the endless weeks sloshing about on ocean waves. If we can produce our beer to the same high standard on the other side of the world, it’s a no-brainer, right?

To achieve this, we’ll work with people we know and trust – people with whom we have long-standing relationships with, in production, distribution, and retail. People who educate, influence and sell to the public.

We’ll establish a beachhead in London, led by Stu who will need to be there to oversee brewing and initial brand development. We will rally our efforts behind the groundswell of appreciation for New Zealand craft beer – champion, charm and seduce – then capitalise with the assistance of a representative who knows the British market and understands our product. From there we plan to expand into Europe.

Pot Kettle Black – Champion

Beer, Hong Kong International Beer Awards

2014

Pot Kettle Black – Champion Beer, Asia Beer Awards 2012

Gunnamatta – Champion Beer, Great Australasian Beer SpecTAPular

2012

The challengeIf you’re reading this you’ve probably already noticed that this craft beer thing is really taking off in New Zealand (and the world). Perhaps you’ve enjoyed a few of our beers in the pub or at home. And maybe you’ve known Sam and I since we first started this journey towards discovering more interesting flavours.

The rise in New Zealand beer has come as no surprise to us, as we’ve been living and breathing the excitement of craft beer since before the turn of the century.

World-class beer is our passion, which is why we started Yeastie Boys six years ago. Since then we have grown an incredibly distinctive stable of beers, a trail blazing business model, and a

reputation for innovation and quality. We’ve formed excellent relationships within the industry, and worked with peers and collaborators to develop the entire craft beer market.

Along the way we’ve been bombarded with requests for our beer from all corners of the globe, but we’ve been hamstrung by an inability to meet demand. People have asked whether they could help us by investing, and we said

we’d tell them when the day came. We’ve not been in a hurry – we’ve been working out where our place is – but that day has finally come.

Following our successful collaboration with England’s Adnams Brewery in February 2014 – which saw our flagship beer Gunnamatta served in more than 900 pubs across the UK and rated the best international beer in the Wetherspoon International

WE WANT TO RAISE UP TO $500K TO PULL OFF ONE OF THE GREATEST SNEAKY COUPS IN BRITISH BREWING HISTORY – STU, YEASTIE BOYS.

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Real Ale Festival – we believe it’s time to lift our eyes to the horizon and seize the opportunity that has presented itself.

The UK and Europe beckons right now. Consumers know about New Zealand beer, our hops, and our exciting craft brewing and bar scene, but as yet they’ve had little chance to sample the goods. They’re demanding a lot more than the drips we’ve fed them thus far. With a massive population base and appreciation of modern beer styles still in their infancy, the scene is set for a successful market entry with excellent growth prospects.

We need funds to develop our business in the UK and Europe

while still maintaining our growth plans here in New Zealand. We’re not looking to invest in land, a building or stainless steel. This money is to make more beer, so we can satisfy the rapidly growing appetite for our product, and to help fund a London-based business development manager to promote our brand, our beer, and Kiwi craft beer as some of the best in the world.

We’re inviting you to invest in success by buying up to 12.5% of Yeastie Boys – the funds we’ve budgeted to take us to the next level.

Help us make it big!

WE HAVE NEW ZEALAND HOPS, WE HAVE NEW

ZEALAND BREWERS, BUT WE DON’T HAVE ENOUGH BRILLIANT NEW ZEALAND BEERS HERE. – JANE

PEYTON, BRITAIN’S BEER SOMMELIER

OF THE YEAR

UK pRODuCtIONNZ pRODuCtION

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Return on investmentIn the lead-up to this share offer, we canvassed potential shareholders on what they considered ideal rewards and returns on their investment. What we discovered was that you wanted to be part of something – to receive unique shareholder benefits rather than a mixed-box of beer (though more than one person asked for colourful pants).

Rewards

All Yeastie Boys shareholders receive:

•Partownershipofoneofthemostdynamic and well-respected brewing companies in the world

•Fullvalueshareswithequalrightsaround dividends, and any other financial disbursements, for all shareholders (where applicable)

•Alifelong10%shareholderdiscounton merchandise through our online store (our beer will be available through the store in the near future, too)

•Firstrightsonpurchasingbottles(orcans) of limited release beers usually only available on tap

•AninvitationtotheYeastieBoysAGMand After Party (business up front, party at the back, as you’d expect)

Shareholders with 2,000 to 19,999 shares receive (all of the above plus):

•Aninvitationtoanannualbrewday,ateither our Invercargill home base or a collaboration at one of our many friend’s breweries

Shareholders of 20,000 or more shares receive (all of the above plus):

•Alifelong20%shareholderdiscounton merchandise through our online store

•Ordinaryshares–withfullvotingrights

Note: These rewards are subject to the rules imposed by the Companies Act 1993 and to you remaining a shareholder.

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Returns

We aim for a future where all of our shareholders receive attractive rewards and healthy dividends, while we continue to create wonderful beers and work in this fantastic industry for the rest of our lives.

We are, however, pragmatic. Should the opportunity present itself, we’d certainly not rule out straight

capital returns if a deal arose that was too good for our shareholders to miss. This may include an initial publicoffering(IPO)oratradesale(partialorfull).

As you can see, we’re not just pragmatic, we’re up front and honest. You’ll find no dirty politics around Yeastie Boys.

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Share types

The law’s an ass but it’s an important aspect of this offer and your rights as a shareholder are important to us.

We agree with our trusted advisors that our small business can remain infinitely more nimble without the added burden of costs associated with being a Code Company (i.e. having to comply with the Takeovers Code).

This means we’ve structured this share offer to ensure we end up with less than 50 voting share parcels.Ourconstitutionisconstructedinsuchaway to ensure all of our shares have the same value and all shareholders rights are protected. We believe this is fairer for all concerned.

Investor class shares carry the same rights as ordinary shares in terms of dividends and other distributions, but not the right to vote. Although they are ‘non-voting’ in a general sense, these shareholders still have a right to vote in specific limited circumstances, namely any decisions:

•thataffectrightsattachedtothose Investor shares

•toputtheCompanyintoliquidation

•forthedisposalofthewhole,oramaterial part, of the property, business, and undertaking of the Company

Investor class shareholders will have the added assurance that there will (hopefully) be some new investorswhoholdOrdinaryclassshares.Thosenew ordinary shareholders will be unrelated to the founding shareholders, and will get to vote on shareholder matters more generally.

Ofcourse,allshareholdersalsohavetheprotections afforded to them in the Companies Act. Broadly, these protections are encapsulated in duties imposed on directors – the directors are required to act in good faith and in what they believe to be the company’s best interests (which generally correlates with the best interests of the shareholders), and the procedural rules that relate to specific types of transaction.

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The Yeastie AdvantageBefore we talk about our strategic plan, let’s look at all the reasons why Yeastie Boys shares are a sound investment.

The New World remixSo, every brewer says their beers are different, but how many really are?

Oursare.YeastieBoysbeersaredifferentiatedbytheiringredientsand the way they are made. We use peat, we use tea. We create candi-sugar from botrytised viognier and ferment it. We know and respect the classic styles, but we’re always looking for original aroma and flavour, in beers that constantly surprise and delight. We call it the ‘New World remix’.

Mind-bending innovationWe’re not scared to rock the boat, to push boundaries. It’s the cornerstone of our enterprise, and a driver of our success.

Some cases in point… our 100% peat-smoked golden ale Rex Attitude won the Morton Coutts Trophy for Innovation at the Brewers Guild of NewZealandAwards.OurEarlGreyIPAGunnamattawasproclaimedchampion beer at the Great Australasian Beer SpecTAPular and kicked offsomethingofatrendofteainbeer.Ourdebutbeer,ahoppyportercalled Pot Kettle Black – deemed outrageously mind-bending on first release – is now a benchmark of its style.

‘STU IS A MASTERMIND OF UNUSUAL AND EXPERIMENTAL

BEERS’ – MICHAEL DONALDSON, TOAST 2014

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Fortunately for us, innovation breeds innovation. Folks approach us regularly with their crazy ideas, some of which aren’t so crazy after all and might just hit the taps sometime down the line. We’ve found it pays to keep an open mind, while making friends with other brewers, winemakers, tea blenders, maltsters and a mad scientist or two. Watch this space – new ideas are brewing!

Puffed chests, gold medallionsOverthelastsixyearswehavewonmoremedalsthanwecancount,and when we win big, we win BIG! In fact, we boast some of the biggest awards won by any New Zealand brewer in the last couple of decades.

•MortonCouttsTrophyforInnovation,BrewersGuildof New Zealand Awards 2011

•AustralasianBreweryoftheYear,WorldofBeer2012

•BestinClass,Stouts/Porters,BrewersGuildofNewZealand Awards 2009 (Pot Kettle Black; surely the only time Three Boys OysterStouthaseverbeenbeaten!)

•ChampionBeer,BeerfestAsia,Singapore2012 (Pot Kettle Black; #1 of 350+ beers)

•ChampionBeer,HongKongBeerAwards2014 (Pot Kettle Black; #1 of 500+ beers)

And, just as importantly, we’ve captured the imagination of the people drinking beer:

•People’sChoiceatBeervana2009 (Pot Kettle Black, #1 of 100+ beers)

•GreatAustralasianBeerSpecTAPular2012 (Gunnamatta, #1 of 80+ breweries)

‘STU IS THE FERRAN ADRIÀ OF BREWING…’

- MARTIN TOWSHEND, TOWNSHEND BREWERY,

NZ CHAMPION BREWERY 2014.

‘WELL MADE – SPECIAL BEER. I LOVED THIS!!!’ –

JUDGE 8, BREWERS GUILD OF NEW

ZEALAND AWARDS 2014 (ON THE SLY

PERSUADER)

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Lean, nimble and sticking to our knitting We’re small, lean and nimble. With just Sam and Stu directing the entire operation, and one more role coming online, we can make decisions fast and keep developing. Between us, we possess the brewing and business skills to grow swiftly with relatively little investment.

Most importantly, with the opportunities that abound in new markets, our growth potential is not bound by the investment in stainless steel. We don’t need to – we work with brilliant breweries who have plenty of capacity, and another few in mind should we need more.

More press per litreAnecdotal evidence suggests that Yeastie Boys receives more press coverage per litre brewed than any breweryintheworld.Ofcoursethisisimpossibletoqualifywithoutspendingtens(ifnothundreds)ofthousands of dollars on pointless research. As one media industry analyst (and craft beer geek) who diligently watches all the beer news says: ‘I think they would definitely be in the conversation, if not number 1.’

We work hard with journalists across various media – brewing, business, travel and lifestyle – to ensure that our story, and that of New Zealand craft brewing in general, gets aired. We’ve received coverage in all sorts of magazines, newspapers, book and blogs, and of course on social media channels where Stu is particularly active. For a business with little marketing budget, these contacts are invaluable in spreading the Yeastie Boys’ love.

Collaborative in the morning, competitive in the afternoonWe’re interested in changing the game, not just playing it. We pride ourselves on working with others to make the craft beer world a better place.

We collaborate not just as brewers, but as business people. For example, we’re currently leading the establishment of a Kiwi craft beer collective that will engage someone on the ground in London to educate the trade, nurture relationships with industry influencer’s, and ensure great New Zealand beer is regularly available in that part of the world. We also work with other breweries on export possibilities, in the knowledge that there is strength (and more stable long-term supply) in a wide and strong product portfolio.

Ourdreamisadomesticmarketinwhich98breweriescontrolallbut3%ofthemarket,ratherthanthecurrent situation where three breweries control 98%. Now that you’ve asked, Yeastie Boys currently produces a meagre 0.5% of the 23 million litres a year of ‘craft beer’ sold in New Zealand. We’re not on a mission to shoulder other businesses out of the market, or to cut prices for volume and market share, but to work with others in growing the wider craft beer sector. We believe we’re better to remain 0.5% of a market that grows fivefold than to double or triple our share of a static or declining market.

‘FOR BEER THAT IS BOLD AND FLAVOURFUL AND DELICIOUSLY IRREVERENT, THE YEASTIE BOYS ARE MY CHOICE AS AUSTRALASIAN BREWERY OF THE

YEAR.’ – STEPHEN BEAUMONT, WORLD OF BEER 2012

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Upstanding business citizensWe take our business relationships as seriously as we take the quality of our beer. We’re not into mucking anyone around.

Overthelastsixyearswe’veproven that we’re here for good beer, and for good business. We’re not looking for uber-growth or a get-rich-quick solution. We want to build our brand in a rewarding, modern way, and we want to bring you along for the ride.

Oh,anddidwementionhowmuch we love beer?

‘…PRETTY MUCH

THE BEST HUMAN

WE KNOW.’ – JESSICA

DUCEY & MEGAN

WHELAN, AFTER

WORKING WITH STU

ON THE 2015 CRAFT

BEER CALENDAR

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Strategic PlanUK ProductionThe United Kingdom and Europe are the focus in the short to medium term of our strategic plan, and form the cornerstone of this share offer.

We have received significant interest from retailers and distributors in United Kingdom during the last few years. This interest increased significantly following Gunnamatta’s appearance at the Wetherspoon International Real Ale Festival in early 2014. It was during our trip to the festival that we investigated the possibility of production in Britain, with positive results.

Yeastie Boys have been invited back to Wetherspoon International Real Ale Festival in May 2015, which will see our beer (and name) in 900 pubs across Britain. This coincides perfectly with our schedule for release of UK-brewed Yeastie Boys beer, meaning we’ll have a positive answer when people begin asking where else they can get our beer. The timing couldn’t be more bang on.

Yeastie Boys’ Head Boy, Stu McKinlay, will spend up to six months in Britain to get this venture off the ground – to oversee initial brewing and promote the Yeastie Boys’ message and brand to leading craft beer influencers. After that, Yeastie Boys will be represented by a UK-based business development manager.

United KingdomProduction

Contract brewing our beer range allows us to brew closer to market and to grow rapidly, without the lead-time of building and installing new equipment, then brewing and shipping consignments all the way to the UK.

Production in the UK reduces our cost to distributors by approximately 25% when compared to brewing in New Zealand. It also decreases minimum lead time, between order and delivery, by approximately eight weeks.

OurUKbrewingpartnerisprominentScottishcraftbrewerBrewdog–the fastest growing food and drinks manufacturer in Britain over the last three years. Their facilities will allow us to brew the same kind of beer styles we currently produce in New Zealand to the highest standard (and in very high volumes, at speed, if required).

Import/Distribution

OurfirstshipmenttoInstilDrinks,anarmofBibendumPLB,willarrivein early February. With a turnover of £300M, and genuine national reach in both the on and off-trade, Bibendum PLB are a major player in the British drinks business. They also have relationships with a vast array ofregionalsub-distributorsacrossBritain.InstilDrinks’abilitytoactasboth importer and distributor allows us to bolster UK production with unique seasonal beers out of New Zealand.

OurbeerwillcontinuetobedistributedinScotlandbyANewWave,with whom we already have a strong relationship. A distributor for the south of England has yet to be appointed.

‘THE BUZZ

TERM OF THE

LAST TWO

YEARS HAS

BEEN ‘CRAFT

BEER’’ – THE

CASK REPORT,

BRITAIN

2013–14

‘CRAFT BEER HAS GONE MAINSTREAM THIS YEAR BECAUSE OF THE

NUMBER OF BARS STOCKING IT, THE NUMBER OF CRAFT-BEER BARS

OPENING, THE NUMBER OF MY FRIENDS TALKING ABOUT IT AND THE

AMOUNT OF PRESS COVERAGE IT IS GETTING.’ – PETE BROWN, BEER

WRITER AT PUB RETAIL SUMMIT, UK 2013

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Kiwi Craft Beer Collective

Yeastie Boys is leading the formation of a New Zealand craft beer collective – a group focused on the marketing and business development of New Zealand craft beer in the UK market. This collective comprises some of New Zealand’s leading craft brewers: Yeastie Boys, 8 Wired, Tuatara, Renaissance and Three Boys. It isintendedthataLondon-basedbrandambassador/businessdevelopment officer will be contracted to represent our collective interests. #CraftedTogether

London first, then the world

With a population of more than eight million people (13 million in the wider metropolitan area), a burgeoning craft beer scene and a wide sphere of influence as a style-setter, London is the obvious place to establish our beachhead. The lessons learned and contacts gained will be utilised for our expansion across the UK, then Europe.

ScandinaviaWe have had genuine interest from Scandinavian importers and distributors, but as yet have not engaged in any tenders for their monopoly-based system.

We have recently begun exporting beer to SR Wine in Norway, an agent for several New Zealand wineries operating both inside and outside the monopoly.

Sweden is shaping up as a potential giant for demand of our UK-brewed product, with both our Scottish distributor and brewing partner maintaining strong links with two Swedish distributors. We intend to investigate our best options for Sweden in mid-2015.

Continental EuropeContinental Europe is also an emergent craft beer market, with blossoming scenes in Spain and Netherlands, and a well-established one in Italy (where we have already sent a container of beer). At this stage we intend to monitor these markets and investigate distribution opportunities as they present themselves.

USA, Eastern seaboardOurUSAimporter,SheltonBrothers,isbasedinMassachusettsandhasstrong logistics links with the UK and Europe, the source of much of theirinventory.DuetothecomplexitiesandcostsoflabelinglawsintheUSA, a very competitive and regulation-heavy local market, we currently only send limited stocks of our beers there. We continue to investigate this market, which may be better served in the future via our UK brewing facility.

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New Zealand and Pacific RimOurproductioninNewZealandwillservicesaleschannelsin New Zealand, Australia, Asia and the Pacific Rim.

New ZealandNew Zealand is our birthplace, the spiritual home of Yeastie Boys and the place from which we draw our inspiration. It always will be.

Production facility

We have a long history of winning awards and acclaim for beers brewed at Invercargill Brewery, since our first batch there in 2008. While we utilised a couple of other breweries in 2013 to keep up with demand, all our beer has been produced in Invercargill since their facility was expanded and upgraded in 2014. With their current capacity we envisage this to continue in 2015 and beyond.

Distribution

In May 2014 we took on an excellent new New Zealand distributor – Federal Merchants. Together, we’re working hard with them to grow our domestic sales, particularly in the rapidly increasing Auckland market. The results have been great – we’ve doubled bottle sales and are now selling more beer in New Zealand than all other markets combined, and there’s still plenty of room to grow.

AustraliaAustralia is an easy location for us to get beer to and a simple place to do business. Australians get Yeastie Boys, as well as New Zealand craft beer in general, which accounts for the esteem in which we are held by this consumer base. Australia is our most important export market in the Pacific Rim, and we intend to investigate the possibility of brewing and appointing a business development representative there within the next couple of years.

ChinaIn many ways, China is as scary as it is promising, but it remains a majorfocusofourinternationalmarketingeffortsfrom2015.Ourfirstshipment into Shanghai – a trial order that recently left the country – is as big as a regular order from one of our established markets. We’re pretty excited about what lies ahead, particularly after we featured at the Beijing Invitational Craft Beer Festival in November. Yeastie Boys was one of only three Australasian breweries to be invited, and we expect our festival appearance will greatly enhance the awareness of our beer within this potentially significant market.

Hong KongThe beer scene in Hong Kong appears to be an up-and-comer, with positive growth in both the local and expatriate community. Although country of origin is a significant factor in consumer choice, education is required here as little is known of New Zealand beer. It is likely that, alongside China and Japan, Hong Kong will be a future focus of our growth in Asia.

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JapanJapan’s craft beer scene is more mature than that of most other Asian countries due to the emergence of domestic craft breweries and an influx of American product. We have currently sent a small amount of beer to Japan and have received interest in another shipment in the near future.

Southeast Asia Still in its infancy, the southeast Asian craft beer scene was initially driven mostly by expat drinkers but is gaining traction with locals. We have an excellent relationship with Taps Beer, our Malaysian distributor, which is currently exploring expansion into the Singapore and Thailand craft markets. We expect this market to evolve slowly but with promising long term potential.

CanadaLike Scandinavia, Canada holds great potential if the best-fit route to market is secured. Although we have strong interest from Canadian distributors, talks have so far been only tentative due to the country’s complex labeling regulations and the powerful influence of provincial monopoliesinbuyingpatterns.Withfocus,andtherightimport/distribution partner, Canada could develop into a strong export market for our product.

Central and South AmericaWe have received serious enquiries from both Mexico and Brazil, both of which have burgeoning craft beer scenes. We have yet to pursue these opportunities as in both instances the demand would place a burden on our current supply. With focus, and the best partners in place, this region could evolve into a significant market.

USA, Western seaboardWe’vejustshippedourfirstconsignmentofbeerintoOakland,California, having previously shipped all USA consignments into Boston. This is much more logical, and sustainable, cutting down both costs and delivery time. The west coast is also far more accessible for us in regards to attending beer events and promotional opportunities.

WeaimtoattendOregonBrewfestinJuly2015–oneoftheUSA’smostimportant beer festivals – where we have been invited as a part of a New Zealand group. This will enable us to assess the future for our beer in the USA market.

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Yeastie PeopleThe BoysThe Yeastie Boys are Stu McKinlay and Sam Possenniskie, who came together in 2008 to push the boundaries of beer as we know it.

But let’s go back a bit…

Stu and Sam dreamed the dream, like so many others, over more than a couple of pints in dark corners of their favourite pubs. No one really expected it to happen. They went their separate ways in the world and updated one another, periodically, on what was happening in their respective beer scenes at the opposite ends of the earth. Eventually they were reunited and, over a couple more beers, decided to chance their arm and try something quite unusual.

Stu had already been brewing on his back porch, way back when it was possible to try every new commercial beer in the country and know almost every craft beer drinker and brewer in the land. He immersed himself in the industry, rapidly gaining the respect that earned him a position on the executive committee of the Brewers Guild of New Zealand before he even set foot in the

commercial industry. He’d already been earmarked as someone who could change the industry.

At that stage he started a homebrewing company, just to make sure he had all of the ingredients he could possibly ever need on hand. You may have heard of it: Liberty Brewing. He adopted this business out to his friend, Joseph Wood, when Yeastie Boys got too busy for him to handle both. Joe Wood has developed Liberty into one of the most loved breweries in the country.

Stu wanted to brew beers not currently available in New Zealand. His skill meant he soon became sick of people turning up to his house with empty flagons and he spotted an opportunity to sell the stuff (if, for nothing else than to sort out the friends from the freeloaders).

Then, in a lightbulb moment, he realised how underutilised many of New Zealand’s craft breweries were. He struck up a handshake agreement with his friend Steve Nally of Invercargill Brewery, which would see Yeastie Boys brewing in Nally’s plant.

Six years on, Yeastie Boys is a multiple award-winning Wellington based meta-brewery with a whole book of stories to tell. We’re having just that little bit more fun than most, despite receiving regular hate mail – a sure indicator that we are pushing the boundaries in the right direction. Reassuringly, we also receive love letters too!

‘I HATE YOU, DIE IN A SEA OF SARS.’ – THE ONLY QUOTABLE LINE FROM ‘CRITIQUE OF YEASTIE BOY REX’, EMAIL FROM CUSTOMER, DECEMBER 2011

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Production partners All Yeastie Boys beer is currently contract brewed by our friends at Invercargill Brewery who now make so much beer for us they have moved and expanded their plant to cope with our demand – now more than 50% of their total output. With their capacity now doubled and the infrastructure to expand twenty-fold, our beer will continue to be brewed in Invercargill for the foreseeable future.

Invercargill Brewery has produced many award-winning beers – not only for Yeastie Boys, but also beers released under their own brand and others made under contract. Just as importantly, though, Invercargill holds true to the same ideals that we do. Their business charter places people at the very top of their list of five key principles – People, Planet, Produce, Plans and Profit.

CollaboratorsWe love to collaborate with brewers at home and abroad. Yeh, ok, we admit that it’s sometimes a bit like a dog pissing on a lamp post (we all like to leave our mark behind after visiting another beer city) but it’s certainly one of the most fun and creative parts of our business.

Breweries (or businesses) we’ve collaborated with:

Liberty Brewing (NZ) Adnams (England)

T Leaf T (NZ, tea merchant) Firestone Walker (USA)

Panhead Custom Ales (NZ) 8 Wired (NZ)

Renaissance (NZ) Lobethal Bierhaus (AUS)

EagleBay(Aus) MoonDog(AUS)

Young Henrys (AUS) Wheaty Brewing Corps (AUS)

ToOl(Denmark) MagicRock(England)

Birra del Borgo (Italy) Sixpoint (USA)

DoctorsOrders(Aus) PrettyThings(USA)

Galbraith’s Alehouse (NZ) Townshend Brewery (NZ)

Gladfield Malt (NZ, maltster) Ben Middlemiss (NZ)

Queenstown Brewers (NZ) Invercargill Brewery (NZ)

Some Young Punks (AUS, winemakers)

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Management & Board of Directors YeastieBoys’managementandBoardofDirectorsiscurrentlymadeupof our two founding fathers – Stu McKinlay and Sam Possenniskie.

Stu and Sam are the yin and yang of the New Zealand beer scene, the two halves of the black-and-white cookie. If Stu is the Richard Hadlee of Yeastie Boys, appealing loudly and taking wickets, then Sam is certainly the line and length of Ewen Chatfield.

Stu McKinlay, Head Boy/Creative Director

Founder, head boy (and occasional wearer of brightly-coloured pants) Stu McKinlay is the fire-starter at Yeastie Boys. He oversees everything from the design of the beers, through the naming and conceptual design of the packaging and marketing collateral, to market development and publicity.

He’s also often picked as a spokesperson and poster boy for the craft beer scene in New Zealand. While he has twice held roles on the executive committee of the Brewers Guild of New Zealand, Stu prefers his benevolent dictator role at Yeastie Boys.

Sam Possenniskie, Directive Creator

Founder, and occasional grower of outrageous beards, Sam Possenniskie is the rock of Yeastie Boys. For every fire started by Stu, Sam is on the lookout to see if a moderate dousing needs to take place.

Sam’s 20-plus years in the banking sector, and MBA to boot, sees him perfectly schooled to oversee the finances, logistics, and commercial wheeling and dealing. He is a safe and trusted pair of hands, has a well-respected palate, and is known to surprise people with fine public speaking when Stu lets him get a word in.

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Advisory BoardThe Yeastie Boys’ advisory board has been appointed to usher the company through the next stage of growth. They know the brand and the business model, understand what drives the company, and contribute new skill sets and ways of thinking to the mix.

Steve Napier, Chair & Governance

Steve Napier is a full time board member with a background in share analysis and equities management. Steve has a wealth of business experience in a wide variety of industries and has served on boards rangingfromtheOhopeBeachCommunity Board to the Government Superannuation Fund Authority. Steve has worked with Yeastie Boys for 18 months, and has been a fan of their product for many years.

Rachel Taulelei, Leadership and Sustainability

Rachel Taulelei is the founder and managing director of Yellow Brick Road, co-founder of Wellington’s City Market, a leader in sustainable business and an inspirational entrepreneurial thinker. She has considerable experience on boards and trusts across the country. We chased Rachel hard for a role on our advisory board as she typifies the ideals the Yeastie Boys hold dear – values-based business (in both the economic and moral definitions) and wider-industry focus. Rachel will also be able to help source kaimoana for the AGM. Bonus!

Graham Pearce, UK AttachÉ and Growth Consultant

GrahamPearceisaDirectorat KPMG Corporate Finance in Leeds, England. He’s the wild card (and, perhaps, wild child) of the advisory board. His knowledge of craft beer skyrocketed while seconded to KPMG in Wellington in2013/2014,resultinginhisevolution to becoming a true advocate for great beer. Graham came into the fold via New Zealand Trade and Enterprise’s Better By Capital programme. His skill set includes helping businesses grow via private equity, mergers and acquisitions. (We aren’t planning to acquire any craft breweries in the near future, so feel free to breathe easy.)

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Coming soon: Stairdancer (Pacific Ale)

Classics

Pot Kettle Black

Fresh and hoppy, yet rich and black. Mindbendingly delicious and a true original.

Gunnamatta

Boldly floral – much like your granny’s bedroom – with stonefruit and citrus notes and a long, dry finish.

Digital IPA

A classic Kiwi IPA – clean malt, citrus notes and tropical hops with a bold bitterness.

Rex Attitude

Innocuous gold but very bold – leather, tweed, kippers, whisky and cigars. You have been warned!

Coming Soon: Divine Hammer (Red Ale)

White Noise

A delicate session-strength beer with hints of orange blossom, coconut, vanilla and a refreshingly dry finish.

Minimatta

The beer geeks’ perfect afternoon tea – solid malt backbone, citrus aromatics, and a quenchingly dry finish.

Product RangeSessionables

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Annuals

Her Majesty

The first half of our annual anniversary series. These beershaverangedfromaBelgian-styleDubbelin2010 through to a double IPA in 2014.

His Majesty

The other half of our annual anniversary series. These beers have ranged from an IPA in 2009 through to a triple stout porter in 2014.

PKB Remix

An annual, ever-changing play on our flagship beer, Pot Kettle Black. We’ve brewed an American hopped version, a couple using different dark malts, a session-strength remix and (in 2014) a version aged in pinot noir port barrels.

xeRRex

Ourannualbatchofimperial-strengthRexAttitudeis dedicated to all the peat freaks who have let us know how much they enjoy Rex – your love helps us soldier on.

SeasonalsWe produce regular seasonals and special releases, which range from our take on classic styles through to the most experimental offerings we ever release.

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BAD BOTTLES

More expensive than cans.

A bottle opener on your key ring might make you cool when nobody else has one but what

about that unsightly bulge in your pocket.

Prone to breakage – which is not great in your house, or at the beach, but even worse

in a brewery!

Brown bottles always clashes with the lovely colours we like to use.

Bottles can’t be satisfactorily crushed underfoot after emptying.

Takes up so much room – think of all those parties where you wished you had a second

recycling bin.

GOOD CANS

Protective! A perfect barrier against light and oxygen – beer baddies.

Portable! We can get 30–40% more beer on pallet, which cuts out dollars when sending beer around New Zealand and exporting.

Beauty! Almost 100% of the vessel is available for artwork.

Cooler! Cans chill much faster in the fridge than bottles.

Cheaper! Printed cans are significantly cheaper than bottle + label + cap.

Safer! You can throw a can in a chilly bin, or chuck it to a friend, and it might foam up but will never smash.

Fun! You can’t shotgun a bottle…

Can the bottle!Yes, folks, cans are the future of good beer. Much like the screwcap was to wine bottles, all those years ago, we’ll all be looking back in ten years’ time and wondering what took us so long to can the bottle.

We’re currently investigating canning machines to see if we can afford one that is good enough for our beer.

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DistributorsBrewing and packaging is only half the job, of course, so we rely on experienced distributors around the world to keep the freight on track, the shelves stocked, and the taps flowing with beer in the best possible condition.

1. Federal Merchants (New Zealand)Federal Merchants are a leading, independent, New Zealand-owned beverage distributor set to become the preeminent distributor of craft beer in New Zealand within the next two years. Established in 1999, they reckon they haven’t come across a company as hard to woo into their portfolio as Yeastie Boys. After a year of Federal grooming us, and some pretty close analysis of the numbers, we took the plunge. We haven’t looked back – bottle sales are up 50% and are expected to rise considerably more this coming summer with the introduction of our first multi-packs.

2. Phoenix Beers (Australia)Phoenix Beers is Australia’s leading craft beer importer and distributor, distributing breweries as mammoth as Weihenstephaner and Sierra Nevada, andasirreverantasMoonDog(theyevenmakeusblush!).OuragreementwithPhoenixlatein2012signaled our first foray into larger scale distribution, and since then we’ve learnt a great deal about the route to market. We’ve enjoyed excellent success with Phoenix Beers and have ambitious plans for growth in 2015 and beyond.

3. Taps Beer (Malaysia)Taps Beer of Kuala Lumpur have been importing Yeastie Boys into their bars for just over a year. Since then they have developed significant brand presence for our product in what is a small but growing Malaysian beer scene, and are now moving into distribution across Malaysia, Singapore and Thailand.TapsBeerhaveMalaysian-basedowner/operators as well as Australian-based owners, so understand the Australasian market better than anyone else in South East Asia. We believe they will be a big player in this potentially lucrative market.

4. Red Willow (Hong Kong)Although a new player in the Hong Kong craft beer scene, Red Willlow is an experienced distributor of wine and spirits. In the six months since they have been importing our beers we have seen strong interest in our product, no doubt buoyed by Pot Kettle Black’s award of ‘Champion Beer’ at the 2014 Hong Kong International Beer Awards. We believe there is great potential for our beer in this market.

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5. A New Wave (Scotland) & 10. (England)Their name perfectly describes their approach and their portfolio speaks for itself – A New Wave distributes some of the very best new wave breweries in UK’s blossoming beer scene, both established and up-and-comers. They get craft beer, are passionate promoters of New World styles, and have been instrumental in helping us understand the complicatedUKmarket.OurfirstshipmenttoANewWave sold out before getting halfway to Scotland and a second one is en route as of January 2015.

6. Shelton Brothers (USA)Not only is our longest-standing export relationship with Shelton Brothers, they are the importers and distributors of our favourite beers in the world – beerslikeJollyPumpkinandDeRanke,whoproducethe kind of beers that make us weak at the knees. This keeps Yeastie Boys in excellent company. As Shelton Brothers import European beer into the USA, we have them pegged as potential importers of both our European and New Zealand-produced beer.

7. SR Wines (Norway)OurNorwegiandistributor,SRWineofNorway,operates both within the Norwegian monopoly and outsideitintheHORECA(hotel,restaurant,cafe)market. In signing an agreement with them we have followed the due diligence of New Zealand wineries, who report incredibly positive results from this relationship. The first shipment of our beer arrived just before Christmas; we’re keen on building a solid long-term relationship into the future.

8. Whisk-e Limited (Japan)Whisk-e Limited are, as the name would suggest, a business that specialises in importing and distributing Scotch whisky. They have recently begun building a small but very serious craft beer portfolio from the best breweries in Britain, Scandinavia, Italy and New Zealand, Yeastie Boys amongst them.

9. Kingfoods (China)The New Zealand Trade Centre recently facilitated a sizeable order of Yeastie Boys beer to China within their second consignment of New Zealand beer to Kingfoods, Shanghai. The turnaround between Kingfoods first two orders suggests this is a company with significant potential to be one of our larger partners in the long-term.

AgentsNew Zealand Trade Centre (Japan & China)The New Zealand Trade Centre is an export trading company focussed on delivering New Zealand products to the world, with a significant focus on Asian markets. We are currently represented by their partners in both Japan and China.

11. Lotus Exports (New Caledonia)Lotus Exports currently export our beer, along with that of other craft brewers and wineries, to New Caledonia. Some people ask ‘why?’ And we ask ‘why not?’

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SuppliersGladfield Malt

We’re new to Gladfield Malt, New Zealand’s craft malting facility, but we’re excited about their malt products as well as their passion and professionalism. The team at Gladfield are uncompromising in their quest for the best product – from the management of their own farm soils where the majority of their barley is grown, through to the continual upgrade of their malting and roasting facilities.

Cryer Malt

Cryer Malt supplies us with German, English and Scottish malts. These old-world maltsters are a step ahead of the new world, especially in the source of the raw ingredients (barley, wheat and rye) that we use in our beers. The beauty of using these ingredients, the baseline for all of our beers, is that it makes our recipes easier to convert to production in the northern hemisphere.

New Zealand Hops

Besides the occasional seasonal beer using imported hops, Yeastie Boys are proud users of (virtually) 100% New Zealand hops. We love the unique flavours and aromas they lend our beer, and the somewhat unusual characteristics that make them tricker to blend than their well-documented American and European cousins. New Zealand Hops look after us, as local brewers, which means we have less need to contract into hop futures.

T leaf T

John van Gorp, of Wellington tea blenders T Leaf T, thought Stu was a crackpot when he first approached the company to investigate the use of tea in Yeastie Boys beers. We’re now one of their largest customers and the biggest buyer of Earl Grey tea in New Zealand.

ComplianceThere are people who shake their heads, wondering why we’d give up a good paying office job for this life, while simultaneously wishing they’d done it themselves and helping us jump through the right hoops. They include:

•MinterEllisonRuddWatts(legal)

•KPMG(business)

•ANZBank(banking)

•IanL.PossenniskieBCACACPP(accounting)

Other supportOtherorganisationswhoregularlyhelpuswithnetworking and business development are:

•NewZealandTradeandEnterprise

•GrowWellington

•PositivelyWellingtonTourism

SponsorshipThe Arts Foundation – www.thearts.org

The Yeastie Boys has a multi-year deal sponsoring The Arts Foundation.

The Arts Foundation has developed the annual New Zealand Art Awards to focus New Zealand’s attention on the achievements of artists and to reward and encourage artists with financial awards. The recipients include some of this country’s finest dancers, choreographers, musicians, composers, writers, visual artists, actors, film practitioners and more.

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The Craft Beer MarketWe like to think New Zealand is important in the beer world, but we’re virtually insignificant.

We’re never going to compete on volume – we export about as muchbeerastheDominicanRepublic,andaboutan80thofthatofMexico. Most of our current export volume is factory-brewed beer that could hardly be differentiated from what comes out of Mexico or the DominicanRepublic.

However, we can compete on quality, and that’s why this is the way of the future. Like our counterparts in the wine industry, we can differentiate ourselves by what is inside our bottles as much as what is said on the label.

Yeastie Boys marketAnnual growth

We’ve achieved steady growth with New Zealand production over the last six years, without a single employee.

We expect this growth to continue based on the work we’re undertaking with Federal Merchants (e.g. multi-packs, new beers, sales staff on the ground) and new export market opportunities.

For the last couple of years we have applied the brakes to export sales, as Invercargill Brewery embarked on their expansion programme. With this expansion now complete, we can pursue the export opportunities we’ve kept on hold.

Yeastie Boys Revenue 2008 - 2015

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Yeastie Boys Revenue Forecast Split (%), by Region 2014 - 2018

We aim to more than double our revenue in the first year of commencing production in UK. There is a good opportunity to raise this even higher if we engage with distributors in another European country or two.

Yeastie Boys Revenue Forecast 2016 - 2018

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USA market comparisonComprehensive analyses of the United Kingdom’s burgeoning craft beer market is difficult to find. Like New Zealand’s craft beer scene, growth stories tend to be either brewery specific or anecdotal.

However, it’s useful to look at the USA market – widely considered to be 10 or more years ahead of the rest of the craft beer world. ‘Craft beer’ there has almost reached the point of normalisation, so much so that the term itself is almost irrelevant. The market data (via Brewers Association industry surveys) is second to none.

There has been solid and sustained year-on-year growth in the USA craft beer market, by volume, for the last two decades. In the last decade, as sales of traditional beer stalled (or even fell), craft beer has also attained a sizeable increase in market share.

Source: Brewers association

For the year ending 2013, craft beer sales were up 17.2% by volume, in a market that is diminishing overall. Craft beer made up 7.8% of total market volume and, more significantly, made up 14.3% of total market spend (almost double the spend, per unit, of mainstream beer).

In New Zealand the market volume is probably 2-4% or less, comparable to where the USA was in the early 2000’s. In the UK that percentage is probably even lower.

‘CGA STRATEGY HAS GENERATED THE

FIRST TOTAL MARKET VIEW OF CRAFT BEER PERFORMANCE IN THE

GREAT BRITAIN ON TRADE, QUANTIFYING SALES NOW WORTH

£225M WITH GROWTH OF 79% IN THE LAST

12 MONTHS (TO SEPTEMBER 2013).’ – CGA STRATEGY,

ENGLAND

U.S. craft beer market annual volume U.S. craft beer market share

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Source: Brewers association

US Beer Volumes (Millions of barrels)

Source:DemeterGroup,StateoftheCraftBeerIndustry2014

U.S. BeeR Sales 2013

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Craft Beer is not a bubbleEvery time a new brewery or craft beer-focussed pub is opened, we get a load of amateur industry commentators asking when the bubble will burst when in fact all signs indicate that craft beer growth is tracking sustainably.

Source: Brewers Association, The craft beer (non) bubble

One of These is noT a BubbLe...

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Are we comparing apples with apples here? We can never be 100% certain but we’re closer than the infographic below.

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Yeastie Boys Shareholding

Pre-offer Post-offer (if fully subscribed)

Name Shares % Name Shares %

Stu McKinlay 1,575,000 45.00 Stu McKinlay 1,575,000 39.37

Sam Possenniskie 1,575,000 45.00 Sam Possenniskie 1,575,000 39.37

Fritha Burgin 175,000 5.00 Fritha Burgin 175,000 4.38

Anna Possenniskie 175,000 5.00 Anna Possenniskie 175,000 4.38

- - - New shares 500,000 12.50

TOTAL 3,500,000 100% 4,000,000 100%

FinancialsShare Offer Numbers & types of shares

We are offering a minimum of 350,000 shares (to close the offer) and up to a maximum of 500,000 shares at $1 each. This represents up to 12.5% of Yeastie Boys.

SharetypesincludeOrdinaryshares(forparcelsof20,000sharesandabove)andInvestorshares(parcelsof less than 20,000 shares).

Share breakdown – Pre and Post Offer

Beer production, UK

This cash funds the first four months of beer production in UK, before income from sales begins to flow in.

International Travel

Travel and associated living costs for setting up brewing and business development in Britain.

Operating Expenses, UK

OperatingexpensesinUKwillneedtobecoveredinthelagperiod between arriving to brew and income flowing through.

New key staff, NZ

To enable key staff to move from NZ to UK for set-up purposes, anOperationsManagerwillneedtobeemployedtohandleNZbusiness. This budget covers the income lag period for the first four months of their role.

Business Development Manager, UK

Yeastie Boys are committed to contributing to a UK-based BrandAmbassador/BusinessDevelopmentManagerfortheKiwi Craft Beer Collective (20% share from each brewery). This covers the first third of the year, before UK income can be used to pay for this role.

$290,000

$40,000

$35,000

$30,000

$15,000

Liquidity of shares

Yeastie Boys are committed to ensuring shareholders have a means of selling their shares, if and when required. At present this process will be managed manually by Yeastie Boys via the PledgeMe shareholder portal. With changes to financial rules in New Zealand, we are expecting an appropriate and affordable share trading platform to become available in the future.

How capital will be investedAll of the monies raised in this share offer are for the brewing of beer and associated business development.

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New Zealand and Pacific Rim growth

To develop other markets from NZ production, we will need to cover the up-front costs of production. While some of this can be met by apportioning a percentage of revenue to this growth, an amount of working capital will allow us to take on these markets immediately.

Cost of Share Offer

Raising this capital incurs compliance costs in the form of PledgeMe fees, legal fees and business consulting.

$50,000

$40,000

Valuation

The valuation of Yeastie Boys was undertaken by our current board of directors.

We sought advice from people in the financial services industry, our lawyers, and have consulted members of our advisory board.

We are comfortable that the valuation reflects a fair value for our current market position and, importantly, the growth potential we have developed through our initial forays into Europe.

Valuation Comparisons (NZD, unless specified)

MarketValue(M)Revenue(M)PricetoSalesPricetoEBITDA

YeastieBoys 3.50 0.67 5.25 N/A*

Renaissance 5.00 1.50 3.33 29.00

BrewDog (£)111.10 10.70 10.38 231.00

42Below 136.00 17.00 8.00 N/A*

Stolen Rum 14.00 2.40 5.83 unknown^

Moa 12.64 4.60 2.75 N/A*

Little World Beverages (Little Creatures) (AU) 391.70 85.75 4.57 19.40

*NoprofitestimatedforYeastieBoys2014/15.Noprofitmadeby42BeloworMoaattimeofvaluations.^ Private equity raise. No figures available but press infers Stolden Rum not yet profitable at the time of valuation.

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Statement of Financial Performance - Forecasts 2016-2018Silver Forecast (NZ$’000s)

Forecast Forecast Forecast Estimated Actual Actual

FYE’18 FYE’17 FYE’16 FYE’15 FYE’14 FYE’13

Income 3,161 2,282 1,642 666 549 419

Cost of Sales 2,377 1,708 1,227 500 420 354

Gross Income 784 574 415 166 129 65

Gross Margin 25% 25% 25% 25% 23% 16%

OperatingExpenses 609 479 462 166 118 78

EBITDA 175 95 -47 0 11 -13

DepreciationandAmortisation 0 0 1 1 0 0

EBIT 175 95 -48 -1 11 -13

Interest Income 0 0 0 3 1 1

Income Tax -49 -27 0 -1 -3 0

NonDeductibleExpense -1 -1 -1 -1 -1 0

Net Income 125 67 -49 0 8 -12

Statement of Financial Position - Forecasts FY 2016-2018

Silver Forecast (NZ$’000s)

Forecast Forecast Forecast Estimated Actual

FYE’18 FYE’17 FYE’16 FYE’15 FYE’14

Assets

Cash 81 61 84 468 86

Current Assets 923 792 679 291 164

Fixed Assets 0 0 1 3 0

Total Assets 1,004 853 764 762 250

Liabilities

Current Liabilities 158 115 83 32 11

Non-Current Liabilities 186 203 213 213 222

Total Liabilities 344 318 296 245 233

Equity 660 535 468 517 17

Financial Position

LoansShareholder loans of $180,582 are owed to the current shareholders at the time of this offer. The intent is that these loans are paid back from operating income, only when the business is profitable, and that no more than 10% of total EBIT will be used for these payments.

AuditWe have not yet conducted an audit, due to the fact thatweareasmallcompanyrunbytwoowner/operator couples. We will do so under our new shareholding structure – from the financial year 2015/16onwards–andarelikelytousetheservicesof KPMG (who are currently engaged for advice on international trade).

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Risk

Cashflow

We have no fixed assets so borrowing cash isn’t as easy as it might be if we need to grow rapidly to cope with UK demand.

New Zealand or Scottish contract brewery becomes unavailable.

Although unlikely, given that both breweries are well established, the loss of production in either one of our current breweries would result in the inability to produce for some period of time.

Loss of key staff.

Losing either one of Sam or Stu would be a significant issue for Yeastie Boys.

Mitigation

We’re currently investigating options.

This could involve another equity raise (we are able to raise up to $2m per annum via equity crowdfunding).

Non-equity funding options may include equity debt funding, debt issuance, bank loans or finance companies.

Either one of these breweries could take up some (or all) of the slack created by the other one being out of production.

In New Zealand we have a few back-up options that areavailableatrelativelyshortnotice.Oneortwoofthese could double as an interim production facility for export demand, should we be unable to produce in Scotland.

OnceinBritain,wewillhavetheopportunitytofindback-up options for British production.

Both Sam and Stu can fulfill each other’s roles to the point of keeping the business running in the short to medium term.

We intend to add to our strong management team over the next year, which will reduce excess workload on Stu and Sam, will allow us to concentrate on the jobs we do best, and to reduce associated risks around burnout. This will lessen the risk of losing key staff.

Future financeThe money raised from this offer is intended to provide Yeastie Boys with the necessary funds to meet our medium full-year forecast for 2016. We are currently investigating options for short-term finance if the demand for our beer significantly outstrips the amount we can finance with this share offer.

These may include equity debt funding, debt issuance, bank loans or finance companies.

Should opportunities requiring significantly increased production arise, and the board of directors deem it necessary, we may raise more money to fund further growth. Yeastie Boys constitution ensures that all current shareholders have the pre-emptive right to purchase further shares (and, as such, avoid dilution of their shareholding), unless the issue is approved by an ordinary resolution.

RisksRunning a business and, as such, investing in one is an inherently risky business. We have highlighted a number of strengths, throughout this document, but one we have not mentioned is that we are self-aware… We do the best we can to mitigate risks or minimise their impact should they arise. Here are a number of risks that we’re cognisant of.

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Foreign exchange volatility

Exporting from New Zealand, and funding a British brewing operation from New Zealand, meansrevenue/costsareaffectedbyforeignexchange fluctuations.

Distancefromourkeymarkets

Long shipping distances to many of our existing markets is costly and, as such, we need to avoid as much as possible.

We’re still new to the British market.

While they speak the same language, and drink beer through the same orifice, there are historical intricacies and differences in British drinking culture that can only be learned in time.

We already have documentation of key contacts and processes around the production and distribution of our beer, so someone could undertake the operational running of the business with minimum involvement from current management.

Ourbusinessmodelwillsomewhatoffsetriskitself.

A lower NZ dollar aids export options by reducing our relative costs to overseas importers. In a scenario where this plays out for an extended period, we could look at producing in New Zealand and exporting while the rate remains the same.

A higher NZ dollar makes the production of beer in Britain, or other markets, relatively cheaper. If this scenario plays out over an extended period, we could possibly export to other countries from Britain.

We are proactively reducing this risk by brewing our beer closer to the market in which it will be sold.

We are also interested in looking at this in other markets, should the quality of brewing be acceptable and the market demand high enough to justify it. Australia is already a market on our mind for this – especially with our keg beer, which are 30L one-way kegs, currently being taxed significantly higher in export kegs than 50L domestic kegs.

A switch in packaging, from bottles to cans, will also reduce the shipping costs associated to our beer by up to 40%.

We are new and have a lot to learn about the emerging craft beer market in Britain, as well as the European markets we may consider dealing with.

The key to mitigating risks here is to ensure we have lined up the correct route-to-market, which we are currently doing via the Kiwi Craft Beer Collective representative and the engagement with Bibendum PLB as our key distribution partner. We intend to employ similar tactics in European markets.

Risk Mitigation

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New Zealand is still associated with low cost bland beer.

There is a need to educate consumers that not all beer from New Zealand is bland, amber lager with a name that bares no real association to its actual style.

New Zealand doesn’t have a strong alcoholic beverage export reputation besides wine, we need to educate that there is more to New Zealand than wine.

We’re confident that tasting our beer, as well as those beers from the other breweries in our Kiwi craft beer collective, will change opinions.

Before we can achieve this, however, we need to get the beer into the hands of people who influence and educate. There is a groundswell of craft beer savvy influencers in the UK already, who have been very excited by the presence of the small amount ofbeerwe’veleakedintothemarket.Ourplanisto bolster this with events and education during LondonBeerWeek(February)andacrossSpring/Summer 2015.

We intend to contract a business development manager in London, as a part of the long term plan of our craft beer collective.

Stu intends to spend six months in Britain, while the early brews are taking place, to ensure the initial education of the Yeastie Boys brand and beer to thedistributionchain,publicans/retailersandkeyindustry influencers.

Risk Mitigation

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What if?People all ask… What will you do if we don’t raise the money? We’ll have a beer, a bit of a cry, and then we’ll carry on making awesome beer.

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Additional infoOther disclosures

The Yeastie Boys management team and advisory board are aware of no other disclosures that affect this offer.

About PledgeMe

PledgeMe helps Kiwis turn their dreams into reality through crowdfunding. Crowdfunding is a model of raising money. Take a goal you want to achieve. Turn to your crowd of friends, family, and fans. Ask them to make pledges to your project, and if you combine all that love, it’s more than your goal, you’ve made it!

Legal informationA note from Yeastie Boys: This offer document has been prepared by Yeastie Boys Limited. We have utilised information that we believe to be reliable as at the date of this document. The purpose of this document is solely for information purposes to assist recipients in making their own evaluation of whether they wish seek more information regarding Yeastie Boys’ intended offer on PledgeMe. Nothing in this offer document constitutes an offer capable of acceptance. PledgeMe is licensed and regulated by the Financial Markets Authority and, if Yeastie Boys Limited proceeds to make an offer, any such offer will only be capable of acceptance on PledgeMe’s website. The details of the offer may differ from the information in this document.

A note from PledgeMe:Any share offer is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks. You may lose your entire investment, and must be in a position to bear this risk without undue hardship. New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.

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ContactsYeastie Boys

Stu McKinlay, Head Boy

M: +64 274186639

E: [email protected]

W: www.yeastieboys.co.nz

T: @yeastieboys.

F:www.facebook.com/yeastieboys

PledgeMe

AnnaGuenther,Co-founderandCEO

M: +64 27 2543185

E: [email protected]

W: www.pledgeme.co.nz

T: @pledgeme

F:https://www.facebook.com/pledgeme

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Gold Forecast ($’000s)



Income 5,963 3,979 2,618 666 549 419

Cost of Sales 4,527 3,007 1,977 500 420 354

Gross Income 1,436 972 641 166 129 65

Gross Margin 24% 24% 24% 25% 23% 16%


EBITDA 791 352 45 0 11 -13


EBIT 791 352 44 -1 11 -13


Income Tax -221 -99 -12 -1 -3 0


Net Income 569 252 31 0 8 -12

Silver Forecast ($’000s)



Income 3,161 2,282 1,642 666 549 419

Cost of Sales 2,377 1,708 1,227 500 420 354

Gross Income 784 574 415 166 129 65

Gross Margin 25% 25% 25% 25% 23% 16%


EBITDA 175 95 -47 0 11 -13


EBIT 175 95 -48 -1 11 -13


Income Tax -49 -27 0 -1 -3 0


Net Income 125 67 -49 0 8 -12

Appendix - FinancialsStatement of Financial Performance, 2016-2018 – Gold / Silver / Bronze Forecasts

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Bronze Forecast ($’000s)



Income 2,227 1,659 1,236 666 549 419

Cost of Sales 1,671 1,240 924 500 420 354

Gross Income 556 419 312 166 129 65

Gross Margin 25% 25% 25% 25% 23% 16%


EBITDA 59 -60 -150 0 11 -13


EBIT 59 -60 -151 -1 11 -13


Income Tax -17 0 0 -1 -3 0


Net Income 41 -61 -152 0 8 -12

Notes on forecasts:

•Gold–Verygoodstart,moderategrowth.UKmarketissuccessful;aScandinavianmonopolytenderiswonand retained; one or two other medium-to-large European market is picked up; NZ-brewed beer is picked up in a couple of other medium-to-large markets.

•Silver–Solidstart,moderategrowth.UKmarketimmediatelyhitssimilarvolumestoNewZealand;UKbrewed sales grow steadily, either through decent contracts or small-medium European markets developing.

•Bronze–Slowstart,moderategrowth.UKmarketprovestoughertocrackthanexpected;NootherEuropean markets are developed; New Zealand brewed sales continue to increase at current rates (no new medium or large markets are picked up).

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“That’s all folks”

Yeastie Boys Love Money

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