1. Macquarie Emerging Leaders Conference 2002
Macquarie Equities Emerging Leaders Conference
Andrew Lindberg Managing Director & Chief Executive 1st May 2002
© AWB Limited May 2002

2. Overview Highlights for the first half of 2002 Business Operations
Business Drivers
Growth Strategy
Challenges & Opportunities
Full Year Outlook

3. Highlights – first half 2002

4. Highlights – first half 2002
Wheat crop exceeded expectations > 24 million tonnes
Near record pool prices
Continued strong earnings from our trading, finance and risk management areas
Growth in our pool management and chartering business
Rail freight agreement signed with FreightCorp
JV signed with Syngenta for wheat breeding

5. Business Operations

6. Pool management services
The national pool represents about 80% of total wheat produced in Australia
Aggregate and internationally market pooled wheat
The national pool is operated by AWB International (AWBI). AWB provides services to enable AWBI to operate the pool and in return receives payments for these services
2002 wheat tonnes for export >18million
2002 Gross Pool Value >$4.5 billion
OUTLOOK
New performance-based fee model, which will reward AWB on a commercial basis from 2001/02
Increased earnings for pool management services in 2001/02
2002/03 Australian wheat planting forecast to be > 2001/02

7. Grain acquisition and trading
Contract acquisition products
Suite of comprehensive pre-harvest contract products including Multi V
Domestic trading
Buying for cash and delivering to domestic customers
Buying for cash and delivering to the National Pool
Non wheat exports
OUTLOOK
Strong earnings for grain acquisition and trading in 2001/02
Implementation of new contract acquisition products for 2002/03 harvest
Increase grains under management

8. Supply chain and other investments
Chartering
Agent of chartering services to the national pool, shipping consolidation services, and trading of shipping capacity
Domestic investments
7 grain centres and Melbourne Port Terminal
Overseas investments
Flour and feed milling investments in Egypt, Vietnam and China
Grain importing investment in Japan
OUTLOOK
Continue to invest in supply chain and other investments
Increased earnings for supply chain and other investments in 2001/02

9. Finance and risk management products
Provision of limited recourse finance secured against a grower’s wheat delivery to an AWB managed pool
Provision of risk management products (effectively derivatives that manage pool risk exposures and cash flows) that allow growers to tailor their risk exposure
Products include: Harvest loans and underwriting, Basis Pool, and Riskassist
OUTLOOK
Major new products to be launched in 2002 that offer more flexible and competitive range of financial and risk management options to growers
Similar to 2000/01 earnings

10. Grain technology
Primary role is the development of a proprietary position for AWB in plant genetics and new cereal varieties
Agrifood Technology, AWB Seeds, and AWB Research
OUTLOOK
Joint venture with world leading life science company, Syngenta, to develop new wheat varieties
Expectation for breakeven in 2 to 3 years

11. (interest, tax & corporate)
Business Operations $m
120
+11.1
(9.7)
(17.6)
+39.6
(2.2)
105 90
83.7 75
63.3
(0.8) 60 45 30 15
2000
Pool
Mgt
Services
Grain
Acquisition
& Trading
Grain
Tech
Supply
Chain
& Other
Invest.
Finance
& Risk
Mgt
Other
(interest, tax & corporate)
2001

12. Dividends and Earnings
Macquarie Emerging Leaders Conference 2002
Dividends and Earnings
Earnings per share
Dividends per share
(c)
(c)
34.1c
22c
22c
26.2c
Capital expenditure
Return on equity
($m)
(%)
60.0
($m)
58.1
($m)
12.8%
10.1%
35.8
($m)
© AWB Limited May 2002

13. Business Drivers

14. Business Drivers Australian wheat production
Global wheat production and consumption
Wheat price performance against benchmarks
Trading volumes and margins
Chartering volumes and margins
Tonnage delivered to finance and risk products
Supply chain volume and margins
Interest margins

15. Australian wheat productionmt
Trendline
Production
Production forecasts & projections
Source: ABARE March 2002
(f) = ABARE forecast (z) = ABARE Projection

16. Global wheat production & consumptionmt
Production
Production forecasts
Consumption
Source: Economic Research Service, USDA March 2001
& ABARE March 2002 (f) = forecasts

17. Wheat production forecast – major producers
Source: USDA Jan 2002

18. Growth Strategy

19. Four engines of growth AWB Future
Vision: Grains managed by AWB are the world grains of choice
Mission: AWB is a leading integrated global grains manager
Objective: Maximise value for growers, customers, and shareholders
Financial & risk management
AWB
Future
Core wheat business
Broadening range & volume
of grains under management
Processing & branded products
2002

20. Challenges & Opportunities

21. Challenges & Opportunities
Grains industry consolidation and increased efficiency
Increased competition in grain accumulation trading
Competition for financial services with banks and other providers
To reduce supply chain costs
Middle East uncertainty
Argentinean economic / political instability
Trade reform

22. Full Year Outlook

23. Full Year Outlook Strong underlying fundamentals
Close to growth markets in Asia
Strong brand and customers reach
Experienced in competition
Commercial management driving strategy
Strong balance sheet
But still more to do ….

24. NPAT for the years ended 30 September 2000 to 2002
Forecast 2002
NPAT for the years ended 30 September 2000 to 2002 $m
100 to 110
20-30%
83.7
63.3

25. Interim Results – 31 March 2002
2001/02 half year results released Wednesday 22nd May
Analyst briefing at 2:00pm Wednesday 22nd May
Institutional briefings in Melbourne 23rd May
Institutional briefings in Sydney 24th May

26. Macquarie Emerging Leaders Conference 2002
For more information contact:
Michael Thomas
Head of Investor Relations
Ph:
© AWB Limited May 2002