ANNUAL GENERAL MEETINGALAN WINNEY, CHAIRMANGREG BEASHEL, ACTING CEO16 NOVEMBER 2011

MEETING AGENDA

1. Welcome and introduction (Alan Winney)2. Chief Executive’s summary (Greg Beashel)3. Chairman’s review (Alan Winney)4. Questions and answers5. Meeting business

Greg Beashel:2010/11 review & future outlook

Our strategic priorities

1. Maximising returns for members2. Enhancing product and service offerings for members3. Focus on growing our business

MARKETING

• Maximisereturns

• $500 - $550 per tonne 2011 target

• Grow supply of other origin sugar

LOGISTICS

• Efficiency and safety in all operations

• Storing andshipping other products at terminals where it makes sense to do so

FINANCING

• Access to long-term pricing

• QSL growers are pricing for 2014 season now

• Low-cost financing

PRICING

• Increase range of pricing options

• Delivering value from QSL’s pricing products

2010/11 season highlights

• Total revenues $1.7 billion• Gross surplus $11.8 million• Eight RSSAs rolled over until mid-2015• On-time, in full delivery result of 94.4%• $500 million of low-cost financing• Effectively managing AUD • Administration cost very low• Strong support from funding partners• Grew value of other origin business• Four years with zero LTIs

Surplus has supported low administration costs

• QSL delivered record gross surplus in 2010/11 - $11.8 million• Around $9 million returned direct to industry

– Finance/admin cost reductions– Funding for R&D– Lower marketing fees

• Confident we will be able to ensure surplus continues to exceed marketing fee in future

Maximising returns – pool performance

• Current Seasonal Pool return forecast at $500-550/IPS tonne

• Core focus of our business• Returns depend on both

price and cost management• “Buffer” volumes retained

for current season• More conservative

approach this year

Maximising returns – customer focus

• Two new refinery customers (Indonesia)

• Renewing sales to China• Refining distribution strategy

in Japan• Exceeding internal

benchmarks for FOB premiums

• Attracting a strong premium for Australian sugar– $8 over Thai product

Maximising returns – market outlook

• Thai flooding – minimal impact on crop• Brazil crop forecast lower than expected• India moving from net importer to net exporter• Low quality Philippines sugar moving to Japan• Global consumption continues to grow• Sugar prices remain high compared to historic levels• Floor price around US20c/lb• Volatility is here to stay – increasing speculative activity• Macro conditions remain key focus for market• AUD fluctuations remain a concern• QSL pricing locked in at around US85c

2010-11 Sugar prices

• High prices being achieved on global market

• Increased speculative activity contributing to volatility

• Natural price floor for current season around US20c/lb

AUD-USD Exchange rates

• High AUD an ongoing feature of market

• QSL locked in forward sales at around US85c

• Strong benefit as dollar continued climb through season

Enhancing product & service offering

• Improving communications to industry

– Dedicated staff to be appointed

– Focus on clear information about the marketing system

– Important to ensure all industry members fully informed about QSL products/services

• Increased range of pricing options

– Current season and forward pricing

– Tailored solutions to meet industry needs

• Delivering good value from QSL pricing products

Investing in infrastructure for growth

• Over the past three years QSL has overseen a three-fold increase in capex investment on infrastructure– 2009 – 2011 = $27.2 million– 2006 – 2008 = $8.9 million

• Investing in right improvements, at right time, to grow returns from terminals

• Mackay roof replacement• Lucinda repairs progressing well

Growing the QSL business

• Corporate activity contributes to growth in returns

• Continuing supplementary sales of other origin sugar

• Attracting a strong premium for Australian sugar on the global stage

• Meeting strong demand for our product and protecting long-term customer relationships

Alan Winney: The future of Australian sugar

Moving forward from 2010

• 2010 – once in a lifetime weather event

• System-wide issues – not designed to cope with 2.2 million tonnes

• QSL did all it could to minimise cost and impact to industry

• Could not have done anything differently

Pooling and Pricing Review

• Pooling & Pricing review showed core QSL model is very sound

• Three key recommendations made:– Crop forecasting – Tripartite communications – Tweaks to pricing and pooling system

• Making excellent progress on implementation• With these changes, 2010 should never happen again

Sugar is a changing industry

• Predictions of rapid consolidation are already a reality

• Globalisation has affected industry and spurred consolidation which will continue

• Global demand for Australian products is strong and this will remain

• Opportunity to grow production and capitalise on potential returns

QSL is ready for these changes

• QSL anticipated these changes -we have adapted and are ready

• QSL’s commercial model is strong

• We are well placed to continue maximising returns for our members

• Collectively, industry must all consider what type of sugar industry we would like to see in Australia in the near to medium term

Consolidation brings great opportunity

• Demand for Australian sugar is higher than supply – global demand growing at 2% a year

• To close production deficit and meet demand, Australian sugar needs to achieve volume growth

• Corporate investment to date shows strong commitment to industry and ability to help grow production through:– R&D investment

– Injection of needed capital

QSL’s role in this new world

QSL model is unique in the world, offering the best value for mills and growers. We are a serious player in global

commodities.

MARKETING LOGISTICS FINANCING PRICING

Protecting price transparency is key

• Over recent years we have seen around 70% of industry move to foreign ownership

• Likely to be 80% by Christmas – remaining 20% to follow?• Two or three milling group owners – we have to relate to

them effectively• New products and knowing how to use them• Who will ensure price transparency for growers?

Questions & answers

Meeting business

1. Consideration of the financial report, the Directors’ Report and Independent Auditor Report.