1

‘The Transformation of AWB’Andrew Lindberg, Managing Director

‘The Transformation of AWB’Andrew Lindberg, Managing Director

2

Volatile trade flows

Volatile trade flows

‘Flat’ global demand

‘Flat’ global demand

Global trade distortedGlobal trade distorted

World Wheat Prices Over Time

A tough industry: global wheat market realities

3

Australian growers disadvantaged

High Exposure To World Price Volatility

Unprotected By Subsidies

Wheat Producer Subsidy Estimates: 1999-2001(A$/tonne)

925

147170

0

50

100

150

200

Aus Can US EU

21 30 3355

87

0

50

100

Aus Can Arg US EU

Domestic Consumption As % Total Wheat Production: 1995-2000

(%)

4

Global wheat trends

500

520

540

560

580

600

620

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04(

e)

2004

-05(

f)

(Pro

duct

ion

and

cons

umpt

ion

- m

illion

to

nnes

)

0

50

100

150

200

250

(End

ing

stoc

ks -

milli

on to

nnes

)

World production World consumption World ending stocks

2003-04(e) 2004-05(f)World production 549.61 588.67World consumption 587.93 594.15World ending stocks 128.75 123.36

Source: USDA, May 2004

5

Australia’s competitive position in the world wheat markets

Total wheat production for 2003-04(e) and 2004-05(f)

Argentina

9%

EU

15%Canada

14%

Australia

16%

USA

27%

All other

19%

Major exporters – estimated wheat market share for 2004-05(f)

Source: USDA, May 2004

0

20

40

60

80

100

120

140

Aus

tral

ia

EU

-25

Chi

na

Indi

a

Uni

ted

Sta

tes

Rus

sia

Can

ada

Pak

ista

n

Tur

key

Arg

entin

a

Kaz

akhs

tan

Ukr

aine

All

Oth

er

(Milli

on to

nnes

)

2003-04(e) 2004-05(f)

6

2001 Listed on ASX

1999 Privatised

1998 Corporatised

1989 Domestic market deregulated and Wheat Industry Fund established

1939 Australian Wheat Board establishedas a statutory authority

- Wheat Industry Fund converted to B class shares

- A class shares issued to wheat growers

- Government guarantee of AWB borrowings removed

2003 Landmark acquisition

AWB Evolution

“Shareholders’

equity has grown

from around $600

million in 1999 to

over $1 billion as

at 31 March 2004”.

7

TO…

FROM…

Australian Wheat Board to AWB Limited

•a statutory authority•government owned and backed•wheat marketing authority

2.50

2.80

3.10

3.40

3.70

4.00

4.30

4.60

4.90

5.20

31-A

ug-0

1

30-S

ep-0

1

31-O

ct-

01

30-N

ov-0

1

31-D

ec-0

1

31-J

an-0

2

28-F

eb-0

2

31-M

ar-

02

30-A

pr-

02

31-M

ay-0

2

30-J

un-0

2

31-J

ul-02

31-A

ug-0

2

30-S

ep-0

2

31-O

ct-

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30-N

ov-0

2

31-D

ec-0

2

31-J

an-0

3

28-F

eb-0

3

31-M

ar-

03

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pr-

03

31-M

ay-0

3

30-J

un-0

3

31-J

ul-03

31-A

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3

30-S

ep-0

3

31-O

ct-

03

30-N

ov-0

3

31-D

ec-0

3

31-J

an-0

4

29-F

eb-0

4

31-M

ar-

04

30-A

pr-

04

31-M

ay-0

4

(AUD)

AWB S&P/ASX 200

Market capitalisation:Market capitalisation:

Shares on issue:Shares on issue:

Shareholder’s equity:Shareholder’s equity:

Index inclusion:Index inclusion:

Approx. $1.7 billionApprox. $1.7 billion

338 million338 million

Approx. $1 billionApprox. $1 billion

S&P/ASX 100 (75% IWF)S&P/ASX 100 (75% IWF)

•public company, listed in August 2001•75% grower owned; 25% institutional investors•grain company

8

AWB's success - the 'differentiation' strategy

Developing Market Access

Developing Market Access

Differentiating Products

Differentiating Products

Creating Origin-Specific Demand

Creating Origin-Specific Demand

• Developing new markets for higher quality wheat

• Increased proportion of high quality wheat - without significant price spread decline

• Strong share in markets with freight advantage• Grown or maintained share of stable and high

growth markets

Improving ProductivityImproving

Productivity • Reduced / contained supply chain costs

9

Grain Company to Australia’s Largest Agribusiness

430 outlets430 outlets

2,500 employees2,500 employees

Finance

$2.0b loan book

$300mon deposit

Finance

$2.0b loan book

$300mon deposit

100,000 customers100,000 customers

RealEstate

$800m sales

RealEstate

$800m sales

Wool

600kbales

Wool

600kbales

Livestock

2.0mcattle

11m sheep

Livestock

2.0mcattle

11m sheep

Fertiliser

1.2mtonnes

Fertiliser

1.2mtonnes

Merch

$1.2bsales

Merch

$1.2bsales

Grain company

$5-$6brevenue

Grain company

$5-$6brevenue

Insurance

$120m premium

Insurance

$120m premium

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Australia’s leading Agribusiness

Primary producer Business partner of choice End use customer

Our vision

delivered by..

Comprehensive product / service offering

managedthrough an...

Grain Marketing

andHandling

CharteringRisk

Manage-ment

FinancialServices

InsuranceMerchan-

diseAgronomy Wool Real EstateLivestock

IntegratedValue Chain

to ensure thatAWB is the…

BusinessPartnerof choice

Seedsand R&D

Farminputs

DomesticSupplyChain

Acquisitionand

TradingFreight

OffshoreSupplyChain

End usedemand

Millingand

Processing

The Integrated Business Model

11

AWB Limited

Pooling operationsCommercial operations

Supply Chain & Other InvestmentsSupply Chain & Other Investments

Pool Management ServicesPool Management Services

Finance & Risk Management Finance & Risk Management

Grain Acquisition & TradingGrain Acquisition & Trading

Grain TechnologyGrain Technology

LandmarkLandmark

Group structure

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• Financial Performance

• Commercial skills and culture

• Diversified agribusiness

• Positive outlook for Australian agriculture

AWB is focused on delivering value…

13

QUESTIONSQUESTIONS