SIA Presentation

Andrew Lindberg

Managing Director

17th March 2004

Overview

• About AWB

• Landmark

• Growth Opportunities

• Outlook

• Questions

About AWB• AWB Limited is Australia’s leading

agribusiness and one of the world’s largest wheat managing and marketing companies.

•  AWB is the exclusive manager and marketer of all Australian bulk wheat exports.

• With the acquisition of Landmark, AWB now offers a unique one-stop shop for Australian farmers. Landmark provides customers with rural merchandise, livestock, wool marketing, agronomy, insurance, real estate and rural financial services. It has 100,000 customers, 2,000 employees and 430 offices around Australia.

Market Cap: A$1,636 million (A$4.84 @ 16/03/04)

Shares on issue: 338 million

Shareholder’s equity: A$932 million

(as at 30/09/03)

Listed on ASX: 22 August 2001

Index inclusion:S&P / ASX 100

(75% weighted)

Average daily volume: 417,000 shares (average since listing)

AWB Evolution

2001 Listed on ASX

1999 Privatised

1998 Corporatised

1989 Domestic market deregulated and

Wheat Industry Fund established

1939 Australian Wheat Board established as 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

Landmark acquisition is consistent with AWB’s strategyVision: “Australia’s leading global manager of agricultural commodity assets and

services”

Australian other grains

Australian other commodities

Australian wheat

International wheat

International other grains & commodities

Producers Relation-

ships

End-users Relation-

ships

Rural Services

Agricultural inputs and technology

Finance & Risk Mgmt.

Acquisition & Trading

Supply Chain

Milling & Processing

Pool Mgmt.

Val

ue

add

ing

pro

du

cts

an

d s

ervi

ces

Agricultural Commodities

In

teg

rate

d V

a lu

e C

ha i

n

Shipping

Landmark

Landmark strengthens AWB’s core wheat business & achieves substantial diversification in rural & financial services

• Integration, synergy benefits and building of growth platforms is a major focus in 2003-04

• Landmark distribution network and Rabobank relationship are growth enablers in Financial Services

• AWB will continue to strengthen its grain business by seeking arrangements with bulk handlers allowing competitive access to ports and by securing end user demand

• Strong focus on cost and capital management will help prioritise business opportunities, whether in existing business streams or beyond

The acquisition of Landmark creates a unique ‘one stop shop’ for the farmer

Enhanced access to global markets for Australian agriculture • Access to over 40 countries around the world

Cross-selling• Cross-selling of products and services to farmers and international customers

Supply chain cost savings• Consolidation of procurement functions

• Leveraged logistical capability

Overhead cost savings• Consolidation of AWB and Landmark head office and network functions, where

appropriate

AWB and Landmark

•Acquisition of Landmark dramatically expands AWB’s foot print across rural Australia:

• Better able to service customers and complement Single Desk marketing/risk management activities

• Platform to leverage growth for AWB financial services business

AWB office locations (49)

Landmark outlets (430)

Distribution Network

Growth Opportunities

• Environment becoming increasingly competitive‑ Traditional players – NAB, Rabo

‑ Others players– Westpac, ANZ

‑ AWB product enhancements for 2003

• Performance & take up rates‑ 70% market share

‑ Majority Harvest Loan, but other product use increasing

• Cross sell opportunities between AWB & Landmark‑ Product bundling

‑ Landmark finance staff to sell AWB Harvest Finance

Harvest finance market

The financial services opportunity

Segment ‘C’

5,000 Corporate Enterprise$8b loans

Segment ‘B’65,000 SME agribusiness

customers$20b loans

Harvest finance to grain growers

Small<$200k

Finance to all agribusiness

Medium$200k-$1m

Large>$1m

Turnover

‘Farmers’ ‘Corporations’

Product set

Segment ‘A’30,000 Grain / Broadacre

$2b loans

$30b of agribusiness lending in three broad segments

Source: ABARE, ABS, RBA, APRA, Jun 2002. Neil Clark & Assoc.

Competitive opportunities

Competitors vary in their primary focus

Profitability HighLow

Small

Large

Value Proposition #2:Finance led

Major BanksRabo

ERB

Oppor-tunity 1

Oppor-tunity 2

• 60 RFM/RFO’s• Understanding of

agribusiness risk• Rural distribution• Product bundling• Brand appeal to

agribusiness• Balance sheet

strength, funding, liquidity capacity

Value Proposition #1:Commodity led

• 300 agronomists• Broad product range• Rural distribution• Product bundling• Brand appeal to

agribusiness• Balance sheet

strength, funding, liquidity capacity

Landmark

Regionals

Growth in Agribusiness lending

0

10

20

30

40

50

1997 1998 1999 2000 2001 2002 2003(f) 2004(f)2005(f) 2006(f)

10% CAGR

$Bn’s

Source: ABARE, ABS, RBA, APRA, Jun 2002. Neil Clark & Assoc., Bank Annual Reports. (f) = forecast

CAGR: Compound Annual Growth Rate

Outlook

AWB is well positioned for 2003/04• Increase in Crop size

- Australian wheat production rebounds to approximately 25 million tonnes

- Positive impact on business streams

• Growth Potential in Financial Services & Insurance

- Four Pool Payment Options available this year; forecast 70% take up of total tonnes available for these options

- Cross selling between AWB Loan products and Landmark products to customers has commenced

- Insurance will benefit from the integrated business model, mainly via cross selling to AWB growers

• Fully Operational Grain Centres

- All 21 Grain Centres are operational

- AWB GrainFlow has received more than 1.8 million tonnes

• Strong Chartering Business- Pool tonnes chartered to double in 2003/04

• Rebound in merchandise and fertiliser

- Demand for farm inputs and fertiliser expected to recover due to increased availability of land after the heavy de-stocking during drought.

- Merchandise and fertiliser earnings to be at least 10% higher than previous year

• Slower recovery on livestock

- Due to major de-stocking during drought, it will take a few years to recover to pre drought levels

- However, livestock prices forecast to increase by at least 5%

2003-04 NPAT forecast is $110-$120 million(pre goodwill amortisation, including one off costs)

Questions