SIA Presentation

1
SIA Presentation

• Andrew Lindberg
• Managing Director
• 17th March 2004

2
Overview

• About AWB
• Landmark
• Growth Opportunities
• Outlook
• Questions

3
About AWB
Market Cap A1,636 million
(A4.84 _at_ 16/03/04) Shares on issue 338
million Shareholders equity A932 million
(as at
30/09/03) Listed on ASX 22 August
2001 Index inclusion SP / ASX 100
(75 weighted) Average
daily volume 417,000 shares
(average since listing)

• AWB Limited is Australias leading agribusiness
  and one of the worlds largest wheat managing and
  marketing companies.
•  AWB is the exclusive manager and marketer of all
  Australian bulk wheat exports.
• With the acquisition of Landmark, AWB now offers
  a unique one-stop shop for Australian farmers.
  Landmark provides customers with rural
  merchandise, livestock, wool marketing, agronomy,
  insurance, real estate and rural financial
  services. It has 100,000 customers, 2,000
  employees and 430 offices around Australia.

4
AWB Evolution
2003
Landmark acquisition
2001
Listed on ASX
1999
Privatised

• Wheat Industry Fund converted to B class shares
• A class shares issued to wheat growers
• Government guarantee of AWB borrowings removed

1998
Corporatised
1989
Domestic market deregulated and Wheat Industry
Fund established
1939
Australian Wheat Board established as a statutory
authority
5
Landmark acquisition is consistent with AWBs
strategy
Vision Australias leading global manager of
agricultural commodity assets and services
6
Landmark
7
Landmark strengthens AWBs core wheat business
achieves substantial diversification in rural
financial services

• Integration, synergy benefits and building of
  growth platforms is a major focus in 2003-04
• Landmark distribution network and Rabobank
  relationship are 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

8
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
• Supply chain cost savings
• Consolidation of procurement functions
• Leveraged logistical capability
• Overhead cost savings
• Consolidation of AWB and Landmark head office and
  network functions, where appropriate

9
AWB and Landmark
Distribution Network

• Acquisition of Landmark dramatically expands
  AWBs foot print across rural Australia
• Better able to service customers and complement
  Single Desk marketing/risk management activities
• Platform to leverage growth for AWB financial
  services business

AWB office locations (49)
Landmark outlets (430)
10
Growth Opportunities
11
Harvest finance market

• Environment becoming increasingly competitive
• Traditional players NAB, Rabo
• Others players Westpac, ANZ
• 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

12
The financial services opportunity
30b of agribusiness lending in three broad
segments
Farmers
Corporations
Product set
Segment B 65,000 SME agribusiness
customers 20b loans
Segment C 5,000 Corporate Enterprise 8b loans
Finance to all agribusiness
Harvest finance to grain growers
Segment A 30,000 Grain / Broadacre 2b loans
Turnover
Small lt200k
Medium 200k-1m
Large gt1m
Source ABARE, ABS, RBA, APRA, Jun 2002. Neil
Clark Assoc.
13
Competitive opportunities
Competitors vary in their primary focus
Major Banks
Large
Rabo
Value Proposition 2 Finance led
Value Proposition 1 Commodity led
Oppor-tunity 1
Regionals

• 60 RFM/RFOs
• Understanding of agribusiness risk
• Rural distribution
• Product bundling
• Brand appeal to agribusiness
• Balance sheet strength, funding, liquidity
  capacity

• 300 agronomists
• Broad product range
• Rural distribution
• Product bundling
• Brand appeal to agribusiness
• Balance sheet strength, funding, liquidity
  capacity

Oppor-tunity 2
Landmark
ERB
Small
Profitability
High
Low
14
Growth in Agribusiness lending
Bns
50
10 CAGR
40
30
20
10
0
1997
1998
1999
2000
2001
2002
2003(f)
2004(f)
2005(f)
2006(f)
Source ABARE, ABS, RBA, APRA, Jun 2002. Neil
Clark Assoc., Bank Annual Reports. (f)
forecast
CAGR Compound Annual Growth Rate
15
Outlook
16
AWB is well positioned for 2003/04

• Increase in Crop size
• Australian wheat production rebounds to
  approximately 25 million tonnes
• Positive impact on business streams
• Growth Potential in Financial Services
  Insurance
• Four Pool Payment Options available this year
  forecast 70 take up of total tonnes available
  for these options
• Cross selling between AWB Loan products and
  Landmark products to customers has commenced
• Insurance will benefit from the integrated
  business model, mainly via cross selling to AWB
  growers
• Fully Operational Grain Centres
• All 21 Grain Centres are operational
• AWB GrainFlow has received more than 1.8 million
  tonnes

17

• Strong Chartering Business
• - Pool tonnes chartered to double in 2003/04
• Rebound in merchandise and fertiliser
• - Demand for farm inputs and fertiliser expected
  to recover due to increased availability of land
  after the heavy de-stocking during drought.
• Merchandise and fertiliser earnings to be at
  least 10 higher than previous year
• Slower recovery on livestock
• Due to major de-stocking during drought, it will
  take a few years to recover to pre drought levels
• However, livestock prices forecast to increase by
  at least 5

2003-04 NPAT forecast is 110-120 million (pre
goodwill amortisation, including one off costs)
18
Questions