An Introduction to AWB

Andrew LindbergChief Executive

AWB Limited

Covering today….

• Why it’s appropriate for AWB to present today

• Australian and global wheat industry

• What AWB does and how the company will grow

• Investment attributes

• Challenges and strategies

• Corporate structure

• Regulatory issues

• 2000 financials

• Management and Board

• Listing

Why present at a financial services forum?

Breakdown of2000 Financials

NPAT of $63.3mNPAT of $63.3m

Pool Activities10%

Pool Activities10%

Trading and Other22%

Trading and Other22%

Financial and Risk Products

68%

Financial and Risk Products

68%

93%93%

55%55%

88%88%

78%78%

73%73%

Australia exports 80% of its total average wheat production

Wheat production is about 21 million tonnes

Australian wheat industry

Global wheat trade

Canada19%

Canada19%

1999/2000total wheat trade 100 million tonnes

EU16%EU

16%Other8%

Other8%

Argentina9%

Argentina9%

Australia18%

Australia18%

USA30%USA30%

• Grain technology and seeds

• Grain acquisition

• Domestic logistics

• Pool management and trading

• Risk management & finance

• International grain marketing

What does AWB do?

AWB is integratedacross the value chain

450 employees30 offices in Australia and overseas

AWB offices throughout wheat belt

Wheat Management Traded Share

AWB 18mt 18%

Cargill/Continental 18mt 18%

Canadian Wheat Board 11mt 11%

ADM 8mt 8%

Louis Dreyfus 7mt 7%

Wheat Management Traded Share

AWB 18mt 18%

Cargill/Continental 18mt 18%

Canadian Wheat Board 11mt 11%

ADM 8mt 8%

Louis Dreyfus 7mt 7%

AWB is the largest global wheat manager

Source: USDA, company reports, company interviews

Estimate of wheattonnes under management, 2000

• Financial & Risk Products

• Trading

• Pool Services

• Grain Technology

• Supply Chain

How will AWB grow?

AWB’s core business streams

Investment attributes

• Largest global wheat manager

• Unparalleled expertise in wheat marketing

• Substantial customer base

• Holder of the single desk

• Growth in Asian population & wheat product consumption

• Potential to leverage customer base to deliver a broad range of financial and risk management services

• Potential to extend the customer base to all grain producers and end users

• Scope for geographical expansion

• Strong balance sheet and dividend paying capacity

• Competition for financial services revenue with banks and other providers

• Increasing supply chain costs as a consequence of limited investment and poor contract management

• Entry of international integrated grains companies into the Australian wheat export market

• Emergence of an online global grain exchange

What challenges does AWB face?

1. Win grower mandates

2. Extract value from the supply chain

3. Secure end-user demand

4. Sustain trading out-performance

5. Lead in grain technology

Respond with 5 pronged strategy

WINNING:AWB is the

dominant Asset Manager

for Australian Grain

• Unlisted public company (1 July 1999)

• Dual class

• 35,000 A class shareholders• 1 share each with weighted voting

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

• Balance shareholder & grower interests

Corporate structure

• Domestic wheat market is fully deregulated

• Bulk export wheat is marketed by AWB via

the Wheat Marketing Act legislation

• NCC review of the Export Single Desk

• Commonwealth Government decision

• 2004 review of AWB’s export performance

Regulatory issues

• Operating revenue: $1.8 billion

• Related revenue: $3.8 billion (national pool)

• NPAT: $63 million

• EPS: 26 cents

• DPS: 22 cents

• Shareholders equity: $629 million

• ROE of 10.1%

2000 financial results

Andrew LindbergCEO

Peter GearyGroup GM Trading

Management

Jill GillinghamCIO

Paul InglebyCFO

Tim GoodacreGroup GM Sales & Marketing

Board of directors

• The Board has a commercial balance of

relevant skills• investment banking• risk management• marketing• production• logistics

• Chairman - Trevor Flugge

• Deputy Chairman - Rob Barry

• Process• pre-marketing – early June• prospectus – end June• issue – end June to end July• listing - August

• New equity raised • institutional offer• retail offer• options for existing shareholders

Listing