1

2

Program

Andrew Lindberg

Paul Ingleby

Mark Allison

Marcus Kennedy

MORNING TEA

Sarah Scales

Peter Geary

Jill Gillingham

3

“Corporate Strategy – Diversification & Growth”

Andrew Lindberg, Managing Director

4

AWB’s financial objectives

Return on equity - 15% return on equity in the medium term

Solid EPS growth (including Landmark)- EPS accretive (pre-goodwill, post synergies, post one-off costs) in 2003-04- More than 35% EPS accretive by 2005-06

Stable dividend payment- 11 cents per share for the 2003 final dividend- Expect to maintain dividend payment at current levels for 2003-04

Efficient capital management- Surplus capital utilised to part fund the acquisition of Landmark- Appropriate credit rating

Improve quality of earnings- Reduced exposure to crop size- Reduced proportion of earnings subject to principal risk

5

The acquisition of Landmark is consistent with our corporate strategy

Vision: “Australia’s leading global manager of agricultural commodity assets, services and

flows”

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

6

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

• Integration, extraction of synergies and building of growth platforms will be a major focus in 2003-04

• Landmark distribution network and Rabobank relationship will be 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

7

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

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

functions, where appropriate

Supply chain cost savings• Consolidation of procurement functions

• Leveraged logistical capability

8

Outlook – AWB is well positioned as Australia’s leading agribusiness

Agricultural outlook is improving - AWB forecast 22 to 24m tonnes of wheat for 2003-04- Outlook solid for finance, insurance, fertiliser and real estate

2002-03 Group NPAT forecast in the range of $40-45m

2003-04 Group NPAT forecast in the range of $100-110m- Pre goodwill amortisation, including all one-off costs

Ring fencing of National Pool- Targeted credit ratings achieved and protected

Integration of Landmark- Total EBIT enhancement opportunities, derived primarily from finance growth

opportunities, assessed at $5-$10m in 2003-04 increasing to $30-$40m by 2005-06

9

“Capital & Risk Management”

Paul Ingleby, Chief Financial Officer

10

AWB

Limited AWB International

AWB

Harvest

Finance

Commercial businesses

AWBCommercial

Funding

Bank Facility

US CP Program

Security Trustee

Euro CP Program A$ EPN/MTN Program

Growers

$

WEA

AWBCommercialSubsidiaries

AWB

Services

Wheat export related businesses

Ring fenced operation overview

11

Ring fencing will achieve:

• Highest possible rating given AWB’s business mix and overall capitalisation

• A cost effective sustainable base for the continued operations of the Group

• Separation of the wheat export related and commercial operations of the Group for ratings purposes while retaining operating synergies

• A platform for growth and diversification

• A commercial self regulating structure for the Group’s wheat pooling operation

• Capital allocation within the Group

• Enhanced market transparency of Group operations

• Improved financial flexibility for the Group

Note: ‘Group’ refers to AWB group of entities including Landmark

12

Ring fence of National Pool operations

• Ring fence structure to be effective from 1 October 2003

• Ratings expected post 1 October 2003

- AWB Harvest Finance

S&P: A1+ (s/t) AA- (l/t) stable

Moodys: P-1

- AWB Commercial Subsidiaries

S&P: BBB stable outlook

13

Capital requirements going forward

• Level of capital required to support future growth plans

• No major capital expenditure for 2003-04

• Expected maintenance capital expenditure of approximately $20-$30m per annum (to 2005-06)

14

Risk Management

• Capital allocated to each business stream

• Business measured on RoRAC

• Risk reviewed on a regular basis

15

Landmark – the acquisition

• $718m paid. Purchase price represents good value for AWB given the cross sell opportunities between AWB and Landmark

• No other company positioned to benefit from the synergies as AWB – Landmark was worth a lot more to AWB than other companies

• Funded via cash, debt and new equity:

- Debt facility arranged before announcement

- Institutional placement $152m, Share Purchase Plan (offer closes 10 Oct) and Dividend Reinvestment Plan (up to three fully underwritten)

16

Landmark – integration

• Integration of the two businesses is governed by:

- Desire to minimise disruption to AWB and Landmark businesses during the coming grain harvest (October – February); and

- Need to achieve the synergies as outlined

• Pre completion, synergistic benefits were identified in the areas of cross selling, procurement and overhead cost savings

• Joint AWB/Landmark project team established to progress integration process. The project team reports to a Steering Committee (Landmark Board)

17

Landmark – integration (cont’d)

• Project team has:

– Launched broad communications plan to all staff across 430 locations throughout Australia

– Identified and retained key staff – assuring business continuity during integration

– Conducted meetings between AWB and Landmark counterparts across the businesses to:

Prepare plans for the next 12 months

Validate synergies previously identified

• Project Team will:

– Focus on realising procurement benefits and setting in place a cross sell strategy

18

“Landmark”

Mark Allison Managing Director, Landmark

19

Overview of Landmark

Landmark is Australia’s leading rural distribution network with national coverage and significant growth opportunities

• Largest merchandise and fertiliser distribution business in Australia

• Well diversified earnings base across regions, agricultural commodities and business activities

• High growth finance business that can be further leveraged by AWB

• Strong insurance agency business

• Extensive branch network throughout regional Australia with 430 outlets and over 100,000 customers

• Lower risk agency model relative to peers

• Experienced management team which has presided over previous successful acquisitions and significant earnings growth

20

Mercha-ndise

$1.1b Sales

Mercha-ndise

$1.1b Sales

430 outlets430 outlets

1,890 employees1,890 employees

Livestock

1.9mCattle

11mSheep

Livestock

1.9mCattle

11mSheep

Wool

500kbales

Wool

500kbales

Real Estate

$730msales

Real Estate

$730msales

Fertiliser

1.2mtonnes

Fertiliser

1.2mtonnes

Finance

$815mbook

Finance

$815mbook

Insurance

$119m premium

Insurance

$119m premium

100,000 customers100,000 customers

Landmark: a snapshot

21

Phase 1:Integration and creation of common systems

Phase 1:Integration and creation of common systems

Phase 2: Consolidating

the merger and fine-tuning the organisation

Phase 2: Consolidating

the merger and fine-tuning the organisation

Phase 3: Generating

sustainable growth

Phase 3: Generating

sustainable growth

Strategic direction

• Phase 1 was completed in 2001

• Phase 2 was the focus in 2002

• Phase 3 will focus on new business growth in 2003 and beyond

Three phases for developing Landmark:

22

Strategic direction - phase 1 & 2

The merger of Dalgety and IAMA was the key issue facing Landmark in 2001 & 2002

• Achieving synergy cost savings

• Capturing merchandise and logistics opportunities

• Maintaining revenue in the existing business

• Establishing a new brand identity in the marketplace

• Disposal of non-core businesses

23

Strategic direction – phase 3

Landmark growth

• Appropriate cost base

• Streamlined structure

• Merchandise recovery

• East coast fertiliser expansion

• Drive livestock & wool growth

• National finance & insurance

24

Key strategic issues

• Business sustainability- Commodity market cycles - Variable seasonal conditions - New product technologies- Security of member and agency structure

• Productivity and performance culture- Sales productivity consistency - Network configuration optimisation - Evolving performance culture

• Growth- Internal focus has diluted growth initiatives

25

Strategies

1. Sales productivity• Improve profitability by increasing sales productivity in all

activities

2. Network optimisation• Improve profitability and return on capital by optimising network

configuration

3. Merchandise supply chain• Capture cost & purchasing efficiencies

4. Growth• Generate growth

26

Outlook - 2004

• Improving winter crop

• Irrigation concerns for summer crops

• Low sheep and cattle numbers

• Strengthening livestock prices

• Focus on productivity in merchandise, wool, livestock & real estate

• Focus on growth for finance, fertiliser & insurance

• Continue tight management of costs and capital

• Exploit AWB Group growth opportunities

27

“Financial services”

Marcus Kennedy, Group GM Financial & Rural Services

28

Harvest finance market

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

‑ Others players– WBC, ANZ, Regionals

‑ 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

29

The 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.

30

New finance earnings

Competitors vary in their primary focus of attention

Profitability HighLow

Small

Large

Major BanksRabo

ERB

Regionals

Landmark

Size of business and lending needs

31

Competitive opportunities

Competitors vary in their primary focus of attention

Profitability HighLow

Small

Large

Value Proposition #2:Finance led

Major BanksRabo

ERB

Regionals

Landmark

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

32

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

33

Strategic investment in Grain Technology

Innovation & Research

AWB Seeds Agrifood

Developing business through technology

• Major projects:

- Graingene: to develop traits

- LongReach: to breed premium wheats

- Pipelines: to deliver niche parcels from grower to end-user

• Investment in 2003-04 will be $8m before tax

Innovative business model to deliver value to farmers at lowest cost and risk

• Captured three new licences in 2002-03

• Gained 60% of available wheat variety licences over the last five years

Delivers test results to AWB and leverages expertise in grains and related industries with external customers

34

“Maximising out-performance”

Sarah Scales, GM National Pools

35

Structure

36

Demonstrating performance

Base Fee• 1.5% of GPV

• Subject to a cap of $61.9m and a floor of $46.4m

Out-performance Incentive payment• 1.5% of GPV

• 20% of revenue generated above the WIB plus hurdle

1. USD Wheat Price

Sub- benchmark

1. USD Wheat Price

Sub- benchmark

Pool Benchmark

Pool Benchmark

2. FX (AUD/USD)Sub- benchmark

2. FX (AUD/USD)Sub- benchmark

3. Domestic Supply Chain Sub-

benchmark

3. Domestic Supply Chain Sub-

benchmark

AWB Wheat Industry Benchmark (WIB)AWB Wheat Industry Benchmark (WIB)

Note: The total Pool Management Services fees payable by AWBI to AWB are capped at 3% of GPV (except if the Base Fee floor is triggered).

37

Impact on Base Fee and OPI• US$ Wheat Price• Foreign Exchange• Crop size

A constantly changing environment

0.52 0.55 0.58 0.61 0.64 0.67 0.7

1012

1416

18

0

500

1000

1500

2000

2500

3000

3500

4000

4500

GPV (A$ million)

US$

Crop size (million mt)

38

A constantly changing environment (cont’d)

Wheat Prices and Currency

90.00

110.00

130.00

150.00

170.00

190.00

210.00

$/mt

0.45

0.5

0.55

0.6

0.65

0.7

US$

US HRW French Currency

39

2001/02

Argentina11%

Australia17%

Canada17%

USA28%

NTE20%

EU7%

2002/03

Australia11%

Canada9%

EU12%

USA24%

NTE38%

Argentina6%

A constantly changing environment (cont’d)

40

Strategies

• Vision - Increase exports to Asia to 60% by 2007-08

• Achieving the vision - Crop shaping

- Price discrimination

- Blending and site selection

- Golden Rewards – product and payment integrity

- Supply Chain optimisation

• International sales & marketing strategies- Iraq

- Premium customers & why targeted

- New markets

41

Global market outlook

• Near record low global wheat stocks to use ratio

• Short term - How do EU, EEU and FSU solve their internal deficits

• Medium / Long term – Planting and development of northern hemisphere crops

Source: USDA

(e) = Estimate

mt %

0

50

100

150

200

250

0

5

10

15

20

25

30

35

40

Global Stocks

Global STU

42

Regulatory environment - WEA Review 2004

• Wheat Marketing Amendments 2003

• 2004 Independent Panel

• Impact on growers

43

“Trading & Chartering”

Peter Geary, Group GM - Trading

44

Trading functions

• Provides international marketing service to AWBI for Australian export wheat

• Develop and offer innovative marketing products to domestic growers and international customers

• Trades wheat and other grains as principal in the domestic market. Exports canola, feed & malt barley and sorghum to international markets

• Global Trading business in Geneva trades non-Australian wheat and other grains/commodities

• Chartering business participates in global freight market

• Riskassist provides tailored grower & consumer risk management products

45

Trading business model

The business model supports a ‘solution selling’ approach

Deal Makers

Consumer“Landed”

CharteringFinanceRisk

Services

Supply/Demand

Information

Price Makers

Execution

Supplier“FOB”

FreightPositionTaking

StructuredFinance

VolatilityTrading

CommodityPositionTaking

Control

Deal Makers

Consumer“Landed”

CharteringFinanceRisk

Services

Supply/Demand

Information

Price Makers

Execution

Supplier“FOB”

FreightPositionTaking

StructuredFinance

VolatilityTrading

CommodityPositionTaking

Control

46

Planned outcomes for Trading in 2003-04

• Expand and diversify grains under management

• Develop new markets that fit grains under management strategy & add value to AWBI

• Develop other commodity experience in related agricultural industries

• Secure alliance partner for global origination capability

• Stronger consumer risk management business

• Expanded risk management client base and market share

• Increase pool tonnage sold with freight & grow 3rd party freight business

47

Domestic trading in 2003-04

• Strengthen presence in WA & SA

• Bundle product & service offering to strategic customers (including inputs)

• Expand the range of contract alternatives to growers

48

Global Trading in 2003-04

• First full year nearing completion

– On target to meet volume budget of 1.5m tonnes

– Geneva chartering strong contributor to PBT

• Strengthen skill set & capability – expand corn & soybean business

• Secure regular supply agreements in key markets – Egypt, East Coast Africa, South Africa, Indonesia

• Develop origination capability via alliance in key markets

49

Riskassist in 2003-04

• Continue to expand the grower product range – fixed basis partner pool, washouts

• Expand focus of consumer risk management advice

50

Chartering in 2003-04

• Develop vessel pool and generate fee income

• Develop 3rd party freight business

• Develop back freight opportunities

51

Growth in wheat sales sold with freight

05

10

15202530

35404550

2000-01 2001-02 2002-03 2003-04

• Chartering is a service provider for AWBI

• Active strategy of growing freight under management

• Focus on freight trading, combination cargo & 3rd party business

• Geneva freight book assists information flow

• Key freight markets in 2003-04 include Iran Indonesia, Korea & Japan

(e) = YTD estimate (f) = forecast

% of crop sold CNF

(e) (f)

52

“Supply Chain”

Jill Gillingham, Chief Operating Officer

53

Obligations of Supply Chain Management:

• To ensure grain is delivered in full, on-time, in-specification to end customers at the least cost to growers (supply chain optimisation)

• To meet our obligations under the AWB Constitution: “In relation to wheat growers who sell pool return wheat to the company or its subsidiaries, to maximise their net returns from the pools…by minimising costs as far as practicable”

Supply Chain Management

54

• Strategy:

- Compete on the East Coast

Promote competition on the east coast to the existing storage and handling monopoly operators (includes AWB GrainFlow)

- Collaborate on the West Coast

Long-term access with realistic cost base

• Results in downward pressure on S&H charges

• Lower costs for pool participants, increased out-performance for AWB Limited

Supply Chain Management

55

37.00

38.00

39.00

40.00

41.00

42.00

43.00

44.00

45.00

1999/00 2000/01 2001/02 2002/03 2003/04 2004/05

Cost reduction1999-00 to 2001-02

$3.15 per tonne$53.5 million

National Supply Chain Costs (real dollars)

A$

56

Supply Chain Investments

57

Supply Chain Investments

• Storage and Handling (AWB GrainFlow)- 21 sites strategically positioned on east coast with total capacity of 3.3 million

tonnes

- Modern, state-of-the-art facilities

- Enables efficient intake and outturn of grain

- Expect to realise between $2 and $4 per tonne savings for growers

- Commercial investment returns currently on target

• Train- Investment in 51 rail wagons, leased to operator in NSW

• Port- 50% investment in Melbourne Port Terminal

58

www.awb.com.auFor more information contact:

Delphine Cassidy

Head of Investor Relations

T: +61 3 9209 2404

F: +61 3 9670 1723

E: dcassidy@awb.com.au