June 2003

AWB Limited

2003 Half-year results impacted by drought

• Net profit after tax of $29.9m, down 61%

• Total operating revenue of $1.03b, down 34%

• Earnings per share of 10.9 cents, down 61%

• Interim dividend of 14 cents per share

• Drought impacted wheat crop of 9.7 million tonnes

• Loan book peaked at $1.6b in December 2002

• Gross Pool Value at $1.3b

Statement of financial performance

$million

For the 6 months ended

31-Mar-03

For the 6 months ended

31-Mar-02 Change

Revenue from ordinary activities 1,030.3 1,559.7 (34%)

Cost of sales (883.0) (1,354.1) (35%)

Borrowing costs (42.7) (42.3) 1%

Depreciation & amortisation (12.2) (5.6) 118%

Other (52.4) (50.4) 4%

Share of net profit of associates 2.8 1.9 47%

Operating profit before tax 42.8 109.2 (61%)

Net profit 29.9 77.1 (61%)

Cashflow$million

For the 6 months ended

31-Mar-03

Operating profit before tax 42.8

Tax paid (39.2)

Depreciation & amortisation 12.2

Working capital changes 19.3

Increase in net cash & short term deposits (195.1)

Purchase of non-current assets (49.1)

Purchase of investments (121.7)

Dividends paid (30.2)

Net new equity 1.9

Decrease in loan book 250.1

Increase in debt (109.0)

Capital expenditure

$million

For the 6 months ended

31-Mar-03

For the 6 months ended

31-Mar-02 Change

Grain centres construction 40.7 8.6 373%

System Development &

Other Plant & Equipment

8.4 18.3 (54%)

Total 49.1 26.9 83%

Depreciation 12.2 5.6 118%

Statement of financial position$million As at 31-Mar-03 As at 31-Mar-02

Assets

Cash 61.9 11.7

Receivables 1,721.3 2,987.1

Investments 381.8 109.9

Inventories 310.8 169.3

Property, plant & equipment 206.9 126.2

Other 52.8 18.4

2,735.5 3,422.6

Liabilities

Payables 121.1 188.6

Interest bearing liabilities 1,746.6 2,355.8

Provisions 8.8 47.3

Other 43.1 41.5

1,919.6 2,633.2

Net Assets 815.9 789.4

Business operations

$million

For the 6 months ended

31-Mar-03

For the 6 months ended

31-Mar-02Change

Pool Management Services 8.3 1.8 361%

Grain Acquisition & Trading 15.0 52.5 (71%)

Grain Technology (2.5) (0.9) 178%

Supply Chain & Other Investments 2.8 22.5 (88%)

Interest expense (18.6) (10.4) 79%

Finance & Risk Management 35.5 50.7 (30%)

Corporate 2.3 (7.0) 133%

Operating profit before tax 42.8 109.2 (61%)

Net profit after tax 29.9 77.1 (61%)

Outlook• AWB is forecasting full-year NPAT result in the range of $40-

$45m

• AWB has forecast 2003-04 wheat production between 22-24mt, around 10-15% above the 5 year average. The 2002-03 El Niño is officially finished

• Stable dividend payment for 2002-03 despite reduction in earnings. The Board intends to maintain a stable dividend policy

• Strategic investment in Futuris Limited

• Capital management and ring fencing

• Expand Finance and Risk Management products

• Further growth and diversification – aim to be less than 80% reliant on the wheat crop by end of 2004

Global supply and demand

• 2003-04 world wheat production

is forecast to rebound strongly

following a 5% fall in 2002-03

due to limited production in

Australia, Canada and US

• Carryover stocks are at

relatively low levels,

representing approximately

three months supply.

• Production in other major

exporting countries are forecast

to increase

530

540

550

560

570

580

590

600

610

620

2000-01 2001-02 2002-03(f) 2003-04(z) 2004-05(z)

(mt)

0

50

100

150

200

250(mt)

World Production

World Consumption

World stocks (ending)

(f) = forecast. (z) = projection. Source: ABARE 2003

Global export market share 2003-04

EU15% Canada

14%

Argentina9%

All other20%

Australia16%

USA26%

• Australian, Canadian and US wheat crops expected to rebound significantly

• 2003-04 total exports by major exporting countries forecast to increase to 79.3mt, an increase of 17mt from 2002-03

• Major wheat exporting countries continue to face competition from non-traditional exporters in 2003-04

(above figures are forecasts). Source: USDA May 2003

Non-traditional exporters• Non-traditional exporters have increased their export program over the last

two years due to good production, large carryover stocks and increased investment in transport and infrastructure

• However, some of these exporters will produce significantly lower tonnage in 2003-04, reducing total exports by non-traditional exporters to only 13.2mt compared with 34.9mt in 2002-03

0

2

4

6

8

10

12

14

(mt)

Russia Ukraine Kazakhstan EasternEurope

India Pakistan

2001-02

2002-03(e)

2003-04(f)

(f) = forecast. (e) = estimate

Source: USDA May 2003

Key issues

• Iraq

• Strategic investment in Futuris

• Senate inquiry into WEA Funding

• Future of the Single Desk system

AWB will continue supplying Iraq

• Wheat supply is continuing via the UN Oil-For-Food program under direction from the World Food Program

• The UN Oil-For-Food program has been extended to September 2003

• The UN and the US administration will continue to honour contracts previously awarded

• Australian wheat is widely used and recognised throughout the Middle East region as a clean quality white wheat

• Australia has been supplying Iraq with this wheat for more than 54 years. AWB expects to retain a strong market share in Iraq in the future

Strategic investment in Futuris

• AWB currently owns 14.2% in Futuris – we are the largest single shareholder

• The primary objective is to maximise the value of our investment and to pursue opportunities with Elders (namely, their distribution network)

• In order to increase stake above 15%, we have lodged an application to the Treasurer.

• We expect a decision to be made by the end of June 2003

• This is all about keeping our options open

Senate inquiry into WEA Funding

• The main purpose of the amendment to the Bill is about the ongoing funding to support the continuing operation of the WEA

• However, the process has given a forum to the anti Single Desk campaigners; trying to dismantle the Single Desk

• AWB has participated and cooperated fully with the inquiry

Single Desk

• The 2004 WEA Review is limited to a review on AWBI’s performance as manager of the Single Desk

• It will not incorporate National Competition Policy (NCP) principles or the broader industry issues

• The Single Desk system legislation will be reviewed in 2010 under the NCP principles

• This was confirmed by Minister Truss at the Grains Week conference in March 2003.

QUESTIONS

For more information contact:

Delphine Cassidy

Head of Investor Relations

Ph: +61 3 9209 2404

Email: dcassidy@awb.com.au

www.awb.com.au