Presentation to Ridley Agribusiness Investor Forum

An Introduction to AWB

Andrew Lindberg15 November 2000

Covering today….

• Australian Wheat Industry• Structure & Business• Financial Results• Challenges• Growth and Diversified Profit Streams• Key Industry Considerations• Solid Foundation for Future Success• Board & Management

• 40,000 wheat growing properties

• Geographically fragmented

• 21 million tonnes of wheat production• 20 per cent of wheat grown is

consumed domestically – about 4.5m tonnes

• Balance of wheat is exported

Australian Wheat Industry

Australia’s Wheat Market Share

One of the largest wheat exporters in the world

Wheat Export Volume (1)

Exporter (m Tonnes)

Canadian Wheat Board 19.4

AWB 17.1

Cargill (2) 13.7

ADM (2) 4.5

Conagra (2) 1.9

1/ 99-00, expected export volume2/ U.S. exports onlySource: USDA

AWB is ….

AWB’s Structure

• Unlisted public company (1 July 1999)

• Dual class– 37,000 A class shareholders

• 1 share each with weighted voting

– 67,000 B class shareholders• 241m shares issued

• 425 employees, 30 offices in Australia and oversees

A W B ( In te rn a tion a l) L im ited(N a tion a l E xpo r t P oo l)

T rad ing G ro up A W B F in a nce L im ited

A W B L im ited

S ha reh o lde rsA C la ss - g ro w e r co n tro l

B c la ss - eq u ity inv e sto rs

AWB’s Structure

Global Manager of Australian Grain...

VISIONGrains managed by AWB are the world grains of choice

MISSIONAWB is the leading global manager of Australian grain

OBJECTIVEMaximise value for growers, customers, and shareholders

Financial Results• ½ year to 31 March 2000

– Operating Revenue: $1b– NPAT: $41.8m– EPS: 17 cents

• Full year to 30 September 2000– Operating Revenue: $1.7-$1.8b(est)– Related Revenue: $5.5b (est)– NPAT: $62-64m (est)– EPS: 26 cents (est)– DPS: 22 cents (declared)– Shareholders equity: $625-630m

AWB Faces Three Challenges...

Business Strategy

StakeholderSatisfaction

OrganisationalCapability

WINNING

AWB is Building Strong Positions Across Each Link of the Value Chain

AWB

Seed Acquisition Storage Handling Shipping Trading Marketing RiskMgmt

Milling

The Wheat Industry Supply Chain Suffers Significant Inefficiencies

GrowersBHCs

Customer

Information flows

Product flows

AWB transport

orders

AWB orders, &BHC inventory &

movement reports

AWB forecasts &

price signals

TransportCompanies

1. Most customer orders are by telephone

2. Most transport and BHC orders are by telephone, fax or manual e-mail

4. No access to actual grower production or delivery data

5. Most information flows are NOT automated

Customer orders

3. Most inventory and movement data are controlled by service providers• Limited access by AWB• Low data integrity due to manual systems

Growth and Diversified Profit Streams

Asset & Risk Management

Strategic Investments

Trading Performance

Australian Export Wheat Harvest Value

0%

20%

40%

60%

80%

100%

2000 2003

• Information Advantage

• System Management

• Regulation

Key Industry Considerations

• Strengthening our organisational capability

• Strong and sustainable position within the industry

• Strong profit growth in the core business

• Reducing earnings volatility

Solid Foundation for Future Success

• Trevor Flugge - Chairman

• Rob Barry – Deputy Chairman

• Paul Ingleby – CFO

• Tim Goodacre – Group GM Trading

• Peter Geary – GM Export Pools

Board & Management