2004 Full Year Results24 November, 2004

Andrew LindbergManaging Director

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Content

• Result highlights

• Financial performance (presented by the CFO)

• Business operations

• Landmark integration

• Dividend

• Outlook

4

AWB has delivered a strong result

• Exceeded profit guidance (2003-04 forecast)

• Strong revenue growth

• Significant progress on the integration of Landmark

• Strong balance sheet

• Quality credit ratings

• Positive outlook for next year

5

Result highlights

• Net profit after tax (pre goodwill and amortisation) of $134.7 million, up 191% (exceeded forecast of $110 - $120 million pre goodwill and amortisation). Net profit after tax of $96.9 million, up 121%, post goodwill and amortisation

• Total operating revenue of $5.3 billion, up 142%

• Landmark integration targets exceeded, with $13 million achieved in revenue, cost synergies, and finance growth

• Earnings per share (pre goodwill and amortisation) of 40.1 cents, up 139%. Earnings per share of 28.8 cents, up 81.1%, post goodwill and amortisation

• Final dividend of 11 cents per share, fully franked, amounting to 25 cents per share for 2003-04

• Significant contribution from Grain Acquisition and Trading, particularly Chartering

• AWB Harvest Finance loan book peaked at $1.6 billion in February 2004

• Landmark loan book balance of $1.1 billion at 30 September 2004 (record high)

• Gross Pool Value currently estimated at $4.8 billion for the 2003-04 Pool ($1.3 billion in 2002-03)

• Australian wheat production rebounded to 25.2 million tonnes (9.7 million tonnes in 2002-03)

Paul InglebyChief Financial Officer

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Statement of financial performance

$million

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Revenue from ordinary activities 5,344.6 2,211.9 142%

Cost of sales (4,612.1) (1,889.2) (144%)

Borrowing costs (113.9) (70.5) (62%)

Depreciation & Amortisation (83.3) (29.9) (179%)Other expenses (397.3) (165.5) (140%)Share of profits of associates 9.1 2.1 333%

Operating profit before tax 147.1 58.9 150%

Net profit after tax & OEI1 96.9* 43.9 121%

1OEI = Outside Equity Interests * Post goodwill and amortisation

8* Net of proceeds

Change in debt position

$millionFor the 12 months ended

30-Sep-04

Profit from ordinary activities before tax 147.1

Depreciation & amortisation 83.3

Write down in value of investment 2.8

Tax refund received 8.7

Finance options for growers (net) (368.3)

Purchase of property, plant and equipment* (19.7)

Purchase of controlled entities & investments (32.3)

Increase in cash & short term deposits (473.3)

Dividends paid (54.6)

Proceeds from issue & ordinary shares 75.7

Changes in working capital (208.6)

Change in debt – (increase) / decrease (839.2)

9

Capital expenditure

$million

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Grain Centres 1.9 71.0 (97%)System Development & Other Plant & Equipment 13.6 17.8 (24%)Motor Vehicles 11.6 1.1 955%

New building fit-out 8.5 3.2 166%Total 35.6 93.1 (62%)

Depreciation 56.2 27.4 53%

• 3 year building program for grain centres has been completed

• Expenditure on system development and other PP&E is related to IT, upgrades, motor vehicles (Landmark)

• New building costs relate to the relocation of Head Office in January 2004 (new building is leased)

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$million As at 30-Sep-04 As at 30-Sep-03

AssetsCash 48.2 54.8Receivables 1,725.8 1,012.6Intangibles 515.0 533.6Investments 21.4 12.9Inventories 181.0 185.4Property, plant & equipment 319.6 350.4Other financial assets 873.5 276.0Other 50.7 68.7

3,735.2 2,494.4

LiabilitiesPayables 533.9 356.6

Interest bearing liabilities 1,902.1 1,062.9Provisions 53.7 52.4Financial liabilities 141.1 66.8Other 58.2 23.7

2,689.0 1,562.4

Net Assets 1,046.2 932.0

Statement of financial position

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A-IFRS Impacts

• Employee share schemes, including performance rights, to be expensed

• Goodwill to be subject to annual impairment testing rather than amortised

• Asset impairment testing will allow for fair value or discounted cash flows as recoverable amount

• Inventories held as a commodity trader will be able to be measured at fair value less costs to sell

• Financial instruments will be subject to prescriptive classifications and hedge accounting requirements. May lead to more fair value recognition in P&L and Balance Sheet

• Deferred tax liabilities and assets will incorporate the tax consequences of transactions recognised in the balance sheet

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Business operations (PBT)

$million

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Profit before tax

Pool Management Services 27.5 18.9 46%

Grain Acquisition & Trading 81.0 24.7 228%

Supply Chain & Other Investments (9.9) (20.4) 51%

Finance & Risk Management 30.0 36.1 (17%)

Landmark 72.6 3.6 1,917%Corporate (16.3) (1.6) (919%)Software Amortisation (Landmark) (10.8) 0 n/a

Goodwill Amortisation (Landmark) (27.0) (2.4) (1,025%)

Operating profit before tax 147.1 58.9 150%

Net profit after tax & OEI1 96.9* 43.9* 121%

1OEI = Outside Equity Interests * Post goodwill and amortisation

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Business operations - performance

0

20

40

60

80

100

120

140

160

180

2002-03 NPAT PoolManagement

Serv ices

GrainAcquisition &

Trading

Supply Chain& Other

Investments

Finance & RiskManagement

Corporate Landmark SoftwareAmortisation(Landmark)

GoodwillAmortisation(Landmark)

Tax & OEI 2003-04 NPAT

($)

$43.9m+ $8.6m

+$56.3m+$10.5m - $6.1m

- $14.7m

+$69m -$10.8m-$24.6m

-$35.2m

$96.9m

Note: + / – change is PBT* Post goodwill and amortisation

**

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$million (PBT)For the 12 months ended

30-Sep-04For the 12 months ended 30-Sep-03

%Change

Pool Management Fee 32.7 23.3 40%

Agrifood and R&D (5.2) (4.4) 20%

Total Pool Management Services 27.5 18.9 46%

($million)

For the 12 months ended30-Sep-04

For the 12 months ended30-Sep-03

2002-03 Pool 2003-04 Pool Total 2001-02 Pool 2002-03 Pool Total

Base Fee 4.6 57.2 61.8 6.0 41.8 47.8

Out performance 4.1 29.4 33.5 14.0 15.3 29.3

Administration costs (62.6) (62.6) - (53.8) (53.8)

Total Pool Mgt Services 8.7 24.0 32.7 20.0 3.3 23.3

Pool Management Services

Agrifood and Research & Development (formerly Grain Technology)

• Agrifood technology and R&D now reported under Pool Management Services (the Seeds business is now in Landmark)

• AWB will continue to fund a significant R&D program for the long term benefit of the company – this is an important investment for the future

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Grain Acquisition & Trading

$million (PBT)

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Grain Acquisition & Trading 81.0 24.7 228%

Domestic Trading• Increased its PBT contribution by 104%, with 3.2 million tonnes of wheat traded and 953,000

tonnes of other grains traded domestically

Chartering • Chartering division contributed $48 million PBT to the Trading division’s result, with freight

volumes increasing by 83% compared to the previous year• Successfully employed a long physical trading strategy in a rising freight market• Chartering strategy was backed by robust risk position management, with limits monitored daily

AWB Geneva• Significant improvement to PBT contribution with over 2.0 million tonnes traded, which is a 67%

increase on the previous year’s tonnage • Significant contribution by Chartering

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Supply Chain & Other Investments

$million (PBT)

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Supply Chain & Other Investments (9.9) (20.4) 51%

GrainFlow• Record receivals of 1.8 million tonnes for AWB GrainFlow, up from 185,000

tonnes in 2002-03, mainly due to improved seasonal conditions

Melbourne Port Terminal (JV with Australian Bulk Alliance)• Throughput of over 1.3 million tonnes, up 177% from the previous year

Overseas Investments• Overseas investments performed well• AWB has determined to divest its interest in Vietnam Flour Mills • AWB will continue to explore other overseas investment opportunities

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Finance & Risk Management

million (PBT)

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Finance & Risk Management 30.0 36.1 (17%)

Financial Services• Market share has been maintained by offering a varied combination of products, and the

interest rate spread has been maintained• Tonnage underwritten increased to 11.7 million tonnes as a result of improved seasonal

conditions

RiskAssist, Basis Pool and OTC (over-the-counter) operations • Decreased PBT contribution from the risk management businesses due to a decline in

popularity of the Basis Pool product and a return to more normal market conditions (compared with 2002-03 and 2001-02)

• Growth in RiskAssist sales to Australian and International customers

Treasury• Treasury management contributed PBT of $6.5 million which was $4.0 million below the

previous year due to a return to normal market conditions

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Finance & Risk Management (continued)

05

101520253035404550

2002-03 PBT(Finance & Risk

Mgt)

FinancialServices

RiskManagement

T reasury 2003-04 PBT(Finance & Risk

Mgt)

($)

$36.1m

+$7.8m -$9.9m

-$4.0m$30.0m

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Landmark

$million (PBT)

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Landmark 72.6 44.3 64%

Key statistics – note 2002-03 12 months are for comparative purposes only. Only one month of trading (Sep 2003) included in AWB Group’s 2002-03 result. Landmark was purchased by AWB on 29 August 2003.

Sales Revenue 1,619.9 1,464.6 11%

Gross Margin 313.6 276.4 13%

• All activities (except Wool operations) have outperformed when compared with the previous year

• Merchandise & Fertiliser sales increased by 10%, margins also improved

• Livestock gross profit increased by 17% due to higher cattle prices and increased sheep volumes

• Wool gross profit reduced by 8% due to lower wool prices

• Real Estate sales value increased by 31% due to increased demand for prime rural property

• Finance gross profit increased by 54% with the loan book balance of $1.1 billion (record high) and IBD’s increasing to $304 million

• Insurance gross written premiums increased by 20%

• AWB Seeds – gained over 60% of available wheat variety licences over the past 5 years, and captured 7 new licences during 2003-04 (chick pea and lupin varieties)

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Landmark - gross profit growth across product lines

Insurance

Finance

Wool

Real Estate

Livestock

Other

Fertiliser/ Merchandise

Only one month incorporated in AWB Group’s results in 2002-03

1

1

Gross profit $million

2003-04 2002-03

Insurance

Finance

Wool

Real Estate

Livestock

Fertiliser / Merchandise

Other

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Corporate

$million (PBT)

For the 12 months ended

30-Sep-04

For the 12 months ended

30-Sep-03

%

Change

Corporate (16.3) (1.6) (919%)

Corporate items• Costs include governance, compliance, shareholder services and strategic

development• Integration and restructuring costs associated with Landmark of $8.0 million

Group funding interest• Group funding interest revenue of $4.8 million• Interest previously earned from surplus capital now reported under

“Corporate” - significantly lower than the previous year due to funding requirements for the Landmark acquisition

Miscellaneous Revenue items• $5.3 million profit on sale of Ceres House (Melbourne) and Grains House

(Adelaide) • $7.4 million in Futuris dividends

Corporate items includes corporate overheads, miscellaneous revenue items, and the net result from group funding

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Integration achievements and on going initiatives

Integration achievements thus far• Network consolidation and re-branding of all branches• Back office consolidation - relocation of critical staff to Melbourne• Recruitment of finance and insurance specialists• Incentive program implemented for all staff• AFS license and transfer of IBD arrangements with 85% retention rate• Phase 1 procurement completed with improved terms and conditions negotiated• Launch of Fastrak Finance• At least 95% of the way through the integration stage, and 15% of the way through the

growth stage

Ongoing initiatives• Implementation of the Integrated Business Model due to take place over the next year• Financial Services will continue to focus on product development to improve overall offer to

the customer• Grain Marketers and key branch staff will continue to focus on cross-sell opportunities• The final Procurement category - IT will be finalised by the middle of next year

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The first year synergy result of $13m exceeded the target $5-10m EBIT uplift

0

10

20

30

40

1

($ million)

0

10

20

30

40

1

($ million) Revenue, cost synergies and finance growth (EBIT)

$13m (actual)

FY forecast$30 - 40m

2003-04 2005-062004-05

FY forecast$20 - 25m

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With the integration of AWB & Landmark now achieved, the focus is on creating value and implementing the Integrated Business Model

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Dividend

Final dividend of 11 cents per share• Full dividend = 5.2% yield (as at 18/11/04)

Dividend dates:• Ex dividend date – 29 November 2004

• Record date – 3 December 2004

• Payment date – 17 December

Dividend Reinvestment Plan (changes)• DRP shares will be sourced by a combination of an on-market purchase of shares and

new issue

• Nil discount offered

• Pricing period will be of 7 days trading immediately after the record date (3 December 2004), therefore from 6 December 2004 to 14 December, 2004 inclusive

• DRP election form must be received by 3 December 2004

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AWB remains focused on its financial objectives

Landmark integration

• Focus on further integration and achieving earnings targets of $20-25 million EBIT in 2004-05, and $30-40 million in 2005-06

Finance & Insurance businesses

• Continue with current strategy of leveraging strong relationships with AWB and Landmark customers to offer the full range of lending, deposit and insurance products

Landmark - Livestock, wool and merchandise

• Sheep flock forecast to grow 4.3% during 2004-05, though we do expect some lagging impact from the previous drought on overall volumes of livestock and wool

• Cattle numbers are expected to reach 27.6 million head, and the sheep flock is forecast to reach 99.5 million head in 2004-05, (Source: MLA)

• Australian wool volumes are forecast to increase to 470 million kilograms greasy in 2004-05 (Source: ABARE)

• The market for merchandise and fertiliser is promising, and meat prices look set to remain strong

AWB will focus on achieving solid financial growth, stable dividend payments, efficient capital management, improved quality of earnings and 15%* return on equity in the medium term (subject to normal seasonal conditions)* Pre goodwill and amortisation

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Wheat production forecast

• Estimated by AWB to be between 20 - 22 million tonnes in 2004-05

Global wheat market outlook – production, consumption and price

• World ending stocks forecast to increase for the first time in five years with world wheat production expected to reach 616 million tonnes in 2004-05 as a result of good crops in both the major and non traditional exporting countries

• World wheat consumption forecast to be 605 million tonnes, with human consumption demand increasing at a long term trend of 1%

• Production and export supply from the Russia and the Ukraine are likely to increase

• Production risk premium has been removed from the market and this has seen Kansas futures decline from in excess of US$4 bushel to US$3.40 bushel

• APW National Pool return currently estimated to be $200 per tonne (weaker currency is supportive to price)

Markets

• AWB has a clear strategy to generate more value from the Australian wheat crop through an increasingly differentiated market position

• AWB will focus on opportunities in various markets including China and Iraq

Global wheat market and opportunities

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Earnings forecast for 2004-05

Based on current seasonal and market conditions:

• AWB’s 2004-05 earnings forecast is expected to be comparable to the 2003-04 earnings

• AWB will focus on achieving Return on Equity target of 15% (pre goodwill and amortisation) in the medium term.

QUESTIONS

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For more information contact:

Delphine CassidyHead of Investor RelationsPh: +61 3 9209 2404Email: dcassidy@awb.com.au

www.awb.com.au