1. Microbrewery in the new SUB

2. Project Costs Brewery Development Project in new Student Union Building Type of expenditureCostSource of Funding $ Structural **Architectural 100,000To be decided **Structural 55,800To be decided **Mechanical 81,000To be decided **Plumbing 81,000To be decided **Electrical 81,000To be decided Brewery Equipment * 318,178To be decided *Required Sustainability options 10,000To be decided *Optional Sustainability options 67,500To be decided **Brewery Equipment Escalation 47,727To be decided Installation costs **Architectural Fees 31,392To be decided **Srtuctural Engineering Fees 6,696To be decided **Mechanical Engineering Fees 9,720To be decided **Electrical Engineering Fees 9,720To be decided First Key Design Fees 37,000AMS Cost centre **Permit Fees 8,720To be decided **Contingency for Cost Over runs 53,727To be decided Start up Costs *Pre opening Consulting 97,016To be decided *Licence application/registration fees 4,040To be decided **HST 41,809To be decided Total Pre Opening Project Costs 1,142,045 Assumptions: 1Line items marked with * are derived from Consultants report 2Line items marked ** are based on estimates by AMS Design office

3. Summary To be decided 1,105,045Already budgetted for 37,000

4. Operating Model Scenario 1 Source : First Key report Scenario 1 : Status Quo (no Brewpub) 20142015201620172018 Totals Sales Volume Total Hectoliters 388 417 410 361 310 1,886 Net Revenue 389,675 425,771 424,117 380,434 331,886 1,951,883 Total Cost of Sales 185,809 203,021 202,232 181,403 158,254 930,719 CGS% 47.7% Gross Profit 203,866 222,750 221,885 199,031 173,632 1,021,164 Operating Costs Total Operating Costs 769 845 846 759 665 3,884 Earnings Before Interest and Taxes 203,097 221,905 221,039 198,272 172,967 1,017,280 Interest & Depreciation Net Income before Taxes $203,097$221,905$221,039$198,272$172,967 $1,017,280 Assumptions: 1No new Brew pub or Microbrewery 2Administration costs of current operation are zero

5. Operating Model Scenario 2 Source : First Key report Scenario 2 : With Brewpub 20142015201620172018 Totals Sales Volume Total Hectoliters 739 789 776 693 608 3,605 Net Revenue 629,173 697,432 697,914 629,869 554,731 3,209,119 Total Cost of Sales 249,261 264,224 265,830 255,479 240,391 1,275,185 CGS% 39.6%37.9%38.1%40.6%43.3%39.7% Gross Profit 379,912 433,208 432,084 374,390 314,340 1,933,934 Operating Costs Total Operating Costs 63,594 64,865 66,163 67,486 68,836 330,944 Earnings Before Interest and Taxes 316,318 368,343 365,921 306,904 245,504 1,602,990 Interest & Depreciation 2938327356253302330421277126650 Net Income before Taxes 286,935 340,987 340,591 283,600 224,227 1,476,340 Loan Repayment 40,000 200,000 Net Return on Project $246,935$300,987$300,591$243,600$184,227 $1,276,340 Assumptions: 1Current operations with addition of brewpub/microbrewery 2Increase of 90%+ per annum in Draft Sales 3Administration costs of current plus new operation is zero 4Equipment purchases, including installation are $405,279 5loan to finance project is $200,000, assume 5 year term, interest at Prime +2%

6. Operating Model Scenario 3 Source : AMS Finance Scenario 3 : With Brewpub, but with revised assumptionsn (50% increase in Draft Sales) 20142015201620172018 Totals Sales Volume Total Hectoliters 583 623 612 549 482 2,850 Net Revenue 500,365 552,713 552,986 502,506 443,594 2,552,164 Total Cost of Sales 245,993 260,674 262,272 252,295 237,544 1,258,779 CGS% 49.2%47.2%47.4%50.2%53.5% 49.3% Gross Profit 254,372 292,039 290,714 250,211 206,050 1,293,385 Total Operating Costs 88,594 89,865 91,163 92,486 93,836 455,944 Earnings Before Interest and Taxes 165,778 202,174 199,551 157,725 112,214 837,441 Net Income before Taxes 19,646 60,461 62,259 24,853- 16,238 150,981 Loan Repayment 110,504 552,522 Net Return on Project -$90,859-$50,043-$48,246-$85,652-$126,742 -$401,541 Assumptions: 1Current operations with addition of brewpub/microbrewery 2Increase of 50%+ per annum in Draft Sales 3Administration costs of current plus new operation is $25,000 per annum 4Equipment purchases, including installation are $ 509,653 5loan to finance project is $ 1,105,04510 year term, interest @5% 6Loan financing is available

7. Scenario 4 Source : AMS Finance Scenario 4 : With Brewpub, but with revised assumptions (50% increase in Draft Sales) 20142015201620172018 Totals Sales Volume Total Hectoliters 583 623 612 549 482 2,850 Net Revenue 500,365 552,713 552,986 502,506 443,594 2,552,164 Total Cost of Sales 245,993 260,674 262,272 252,295 237,544 1,258,779 CGS% 49.2%47.2%47.4%50.2%53.5% 49.3% Gross Profit 254,372 292,039 290,714 250,211 206,050 1,293,385 Total Operating Costs 88,594 89,865 91,163 92,486 93,836 455,944 Earnings Before Interest and Taxes 165,778 202,174 199,551 157,725 112,214 837,441 Net Income before Taxes 63,848 100,243 97,620 55,794 10,283 327,788 Assumptions: 1Current operations with addition of brewpub/microbrewery 2Increase of 50%+ per annum in Draft Sales 3Administration costs of current plus new operation is $25,000 per annum 4Equipment purchases, including installation are $ 509,653 5no loan financing, all monies from AMS Funds as directed by Council 6Loan financing is available

8. Scenario 5 Source : AMS Finance Scenario 5 : With Brewpub, but with revised assumptions (25% increase in Draft Sales) 20142015201620172018 Totals Sales Volume Total Hectoliters 486 520 511 456 400 2,374 Net Revenue 420,808 463,328 463,472 420,095 371,681 2,139,383 Total Cost of Sales 243,815 258,308 259,900 250,173 235,646 1,247,841 CGS% 57.9%55.8%56.1%59.6%63.4% 58.3% Gross Profit 176,993 205,020 203,572 169,922 136,036 891,541 Total Operating Costs 88,594 89,865 91,163 92,486 93,836 455,944 Earnings Before Interest and Taxes 88,399 115,155 112,409 77,436 42,200 435,597 Net Income before Taxes - 13,532 13,224 10,478- 24,495- 59,731 - 74,055 Assumptions: 1Current operations with addition of brewpub/microbrewery 2Increase of 25%+ per annum in Draft Sales 3Administration costs of current plus new operation is $25,000 per annum 4Equipment purchases, including installation are $ 509,653 5no loan financing, all monies from AMS Funds as directed by Council 6Loan financing is available

9. Scenario 6 Source : AMS Finance Scenario 5 : With Brewpub, but with revised assumptions (75% increase in Draft Sales) 20142015201620172018 Totals Sales Volume Total Hectoliters 679 725 713 638 552 3,309 Net Revenue 579,923 642,098 642,500 581,171 505,700 2,951,393 Total Cost of Sales 248,172 263,041 264,644 254,418 239,442 1,269,716 CGS% 42.8%41.0%41.2%43.8%47.3% 43.0% Gross Profit 331,751 379,057 377,856 326,754 266,258 1,681,677 Total Operating Costs 88,594 89,865 91,163 92,486 93,836 455,944 Earnings Before Interest and Taxes 243,157 289,192 286,693 234,268 172,422 1,225,733 Net Income before Taxes 141,227 187,262 184,763 132,337 70,491 716,080 Assumptions: 1Current operations with addition of brewpub/microbrewery 2Increase of 75%+ per annum in Draft Sales 3Administration costs of current plus new operation is $25,000 per annum 4Equipment purchases, including installation are $ 509,653 5no loan financing, all monies from AMS Funds as directed by Council 6Loan financing is available

10. Questions?