Title: AWB Limited - 2004 AGM Presentation
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2Brendan Stewart
Chairman
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4Order of meetings
- Meeting of A class shareholders to amend Articles
of the AWB Limited Constitution - Annual General Meeting of AWB Limited
- Meeting of A class shareholders (NSW/ACT region)
to elect a director of AWB (International) Limited
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6Andrew Lindberg
Managing Director
7Financial performance was significantly impacted
by severe drought, across all business streams
- Drought impacted wheat crop of 9.7 million tonnes
in 2002/03 compared with 24.9 million tonnes in
2001/02 - Export volumes in the Pool fell by 77 to 4.3
million tonnes - Net profit after tax of 43.9m, down 59
- Earnings per share of 15.9 cents, down 59
- Fully franked dividend of 25 cents per share paid
during 2003 - Cost control measures implemented successfully
which resulted in a 12 reduction in total
overheads (excluding depreciation)
8AWB has consistently outperformed the SP / ASX
200 since listing
A
9The acquisition of Landmark dramatically expands
AWBs foot print across rural Australia
- 430 outlets, 1950 staff and approx. 100,000
customers - Businesses include wool, livestock, merchandise,
finance, real estate, insurance and fertiliser - 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)
10Our focus is on the successful integration of
Landmark
- Team dedicated to the integration of Landmark
- Targeted EBIT enhancement opportunities of 5-10
million in 2003/04, and 30-40 million by
2005/06 - On track to achieve year one targets and cost
savings - Commenced training of Landmark Rural Financial
Managers - AWB staff already selling a full suite of
financial products - Consolidation of network and re-branding has
commenced - Exploring opportunities to provide unique product
offerings to farmers through one-stop shop model
11Largest ever National Pool finalised reporting a
record Gross Pool Value of 5.3 billion
- Excellent result despite
- - Volatile wheat market
- - War in Iraq
- Strategic decision to extend pool (twice)
resulted in Pool participants receiving an
additional 14.60 per tonne - AWB is also on track to achieve significant
Out-Performance for the 2002/03 National Pool
12Ring fencing has achieved a higher short term
credit rating for AWB
- Ring fencing has separated the activities of the
National Pool from the commercial activities of
the AWB group - Ratings post 1 October 2003
- AWB Harvest Finance
- SP A1 (s/t) AA- (l/t) stable
- Moodys P-1
- AWB Commercial Subsidiaries
- SP BBB stable outlook
13Improvements to the supply chain with a joint
venture between AWB WA CBH
- Co-operative joint venture Grain Direct signed
in WA - Objective is to
- reduce supply chain costs for the National Pool
participants and - produce commercial investment returns for AWB
- Anticipated net savings of 3.30 per tonne, per
annum by 2008/09 harvest
14Global trading operation, Geneva, enabled
continued wheat supply to key customers during
stock shortage
- 1.5 million tonnes traded in its first full year
of operation - Utilised successfully to manage customer demand
during the drought, through other origin grain - Relationships with overseas customers retained
15International marketing program
- CHINA
- Sale of 1 million tonnes of wheat to China -
first sale since 1996
NEW MARKETS Focus on developing new markets,
such as Sudan and Kuwait
IRAQ Will continue to supply Iraq anticipating
strong competition from the US
- Independent review performed strategic plan
developed - Grower participation in the future direction of
AWB (International) Limited and its management of
the single desk
16Price trends for wheat, livestock wool
- Estimated Pool Returns for the 2004/05 harvest of
190 - 200 per tonne for APW - Prices impacted by appreciating AUD
- Hedging program is well underway for 2003/04 and
2004/05 - Outlook for sheep and lamb prices is positive
- Cattle industry remains buoyant
- Wool market impacted by uncertain economic
conditions in major markets
17AWB is well positioned
2003-04 NPAT forecast is 110-120 million
(pre goodwill amortisation, including one off
costs)
- National wheat production forecast to be 25
million tonnes - High Pool receivals enables a greater amount of
tonnage available for harvest finance products - In excess of 1.8 million tonnes through grain
centres - Growth in chartering with approximately half
total Pool tonnage to be sold with chartering
component - On track to achieve targets through the
integration of Landmark
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19- Hamish Gidley-Baird
- Returning Officer
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211st Meeting
Special meeting of A class shareholders to amend
Articles of the AWB Limited Constitution
- Amendment of Articles considered are entrenched
provisions - Requires a majority of at least 75 of votes
being cast by A class shareholders in order for
these amendment to be passed
221st Meeting
- 2.1 A class share redemption
- 2.2 Maintain Grower status
- 2.3 Retiring directors of AWB (International)
Limited seeking re-election
231st Meeting
- Proxy position for special resolutions 2.1, 2.2
and 2.3 for A class shareholders only as at 5pm
(Melbourne time) 9th March 2004
Item Direction No. of Votes
2.1 A class share redemption FOR 5,827
2.1 A class share redemption AGAINST 1,123
2.1 A class share redemption OPEN CHAIRMAN 1,414
2.1 A class share redemption OPEN OTHER 170
2.2 Maintaining Grower status FOR 6,069
2.2 Maintaining Grower status AGAINST 1,019
2.2 Maintaining Grower status OPEN CHAIRMAN 1,337
2.2 Maintaining Grower status OPEN OTHER 159
2.3 Retiring directors of AWB (International) Limited seeking re-election FOR 5,729
2.3 Retiring directors of AWB (International) Limited seeking re-election AGAINST 1,103
2.3 Retiring directors of AWB (International) Limited seeking re-election OPEN CHAIRMAN 1,436
2.3 Retiring directors of AWB (International) Limited seeking re-election OPEN OTHER 174
24 251st Meeting
261st Meeting
271st Meeting
281st Meeting
291st Meeting
301st Meeting
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322nd Meeting
Annual General Meeting of AWB Limited
- Financial Report, Directors Reports Auditors
Report - Election of directors
- Ordinary resolution
- Special resolutions
332nd Meeting
- Election of director of AWB Limited - WA
342nd Meeting
- Election of director of AWB Limited - WA
Laurie Marshall
Winston Crane
Hendy Cowen
Steve Chamarette
352nd Meeting
- Proxy position for election of director of AWB
Limited WA as at 5pm (Melbourne time) 9th March
2004
Item 1.2a Total
Open Chairman 114
Open Other 39
36 372nd Meeting
382nd Meeting
392nd Meeting
402nd Meeting
412nd Meeting
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432nd Meeting
- Election of Director of AWB Limited B class
442nd Meeting
- Election of Director of AWB Limited B class
Robert Barry
Frank OConnor
Brett Cowell
452nd Meeting
- Ordinary resolution
- Increase in non-executive directors remuneration
462nd Meeting
1. Casual vacancies for B class directors
2. A class share redemption
3. Maintaining Grower status
4. Retiring directors of AWB (International) Limited seeking re-election
472nd Meeting
- Proxy position for election of director of AWB
Limited B class - as at 5pm (Melbourne time)
9th March 2004
Election of a B class director Election of a B class director Election of a B class director
Item 1.2b Direction No. of Votes
Mr Robert Barry FOR 38,150,375
Mr Robert Barry AGAINST 9,186,724
Mr Robert Barry OPEN CHAIRMAN 10,502,081
Mr Robert Barry OPEN OTHER 503,369
Mr Frank OConnor FOR 4,600,436
Mr Frank OConnor AGAINST 28,017,908
Mr Frank OConnor OPEN CHAIRMAN 10,495,227
Mr Frank OConnor OPEN OTHER 503,369
Mr Brett Cowell FOR 23,424,725
Mr Brett Cowell AGAINST 21,298,228
Mr Brett Cowell OPEN CHAIRMAN 10,502,164
Mr Brett Cowell OPEN OTHER 503,369
482nd Meeting
- Proxy position for ordinary resolution to
increase non-executive directors remuneration -
as at 5pm (Melbourne time) 9th March 2004
Item Direction No. of Votes
1.3 Increase in non-executive directors remuneration FOR 36,172,225
1.3 Increase in non-executive directors remuneration AGAINST 25,606,614
1.3 Increase in non-executive directors remuneration OPEN CHAIRMAN 6,672,294
1.3 Increase in non-executive directors remuneration OPEN OTHER 587
492nd Meeting
- Proxy position for four special resolutions for A
B class shareholders as at 5pm (Melbourne
time) 9th March 2004
Item Direction No. of Votes
1.4a Casual vacancies for B class directors FOR 49,854,424
1.4a Casual vacancies for B class directors AGAINST 12,576,303
1.4a Casual vacancies for B class directors OPEN CHAIRMAN 11,633,878
1.4a Casual vacancies for B class directors OPEN OTHER 564,342
1.4b A class share redemption FOR 50,953,885
1.4b A class share redemption AGAINST 9,996,307
1.4b A class share redemption OPEN CHAIRMAN 11,279,371
1.4b A class share redemption OPEN OTHER 564,087
1.4c Maintaining Grower status FOR 48,948,401
1.4c Maintaining Grower status AGAINST 12,307,750
1.4c Maintaining Grower status OPEN CHAIRMAN 11,249,676
1.4c Maintaining Grower status OPEN OTHER 559,793
1.4d Retiring directors of AWB (International) Limited seeking re-election FOR 50,394,009
1.4d Retiring directors of AWB (International) Limited seeking re-election AGAINST 10,134,066
1.4d Retiring directors of AWB (International) Limited seeking re-election OPEN CHAIRMAN 11,491,057
1.4d Retiring directors of AWB (International) Limited seeking re-election OPEN OTHER 604,614
50 512nd Meeting
522nd Meeting
532nd Meeting
542nd Meeting
552nd Meeting
562nd Meeting
572nd Meeting
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592nd Meeting
Financial Report, Directors Reports Auditors
Report
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613rd Meeting
Meeting of A class shareholders (NSW/ACT region)
to elect a director of AWB (International) Limited
623rd Meeting
- Election of Director of AWB (International)
Limited NSW/ACT region
Ian Donges
633rd Meeting
- Proxy position for election of director of AWB
(International) Limited NSW/ACT region as at
5pm (Melbourne time) 9th March 2004
Item 3 Direction No. of Votes
Election of Mr Ian Donges to the office of Director of AWB (International) Limited for NSW/ACT YES 1,099
Election of Mr Ian Donges to the office of Director of AWB (International) Limited for NSW/ACT NO 38
Election of Mr Ian Donges to the office of Director of AWB (International) Limited for NSW/ACT OPEN CHAIRMAN 173
Election of Mr Ian Donges to the office of Director of AWB (International) Limited for NSW/ACT OPEN OTHER 11
64 653rd Meeting
663rd Meeting
673rd Meeting
683rd Meeting
693rd Meeting
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