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AWB LIMITED’S INITIAL PUBLIC OFFER

AWB LIMITED’S INITIAL PUBLIC OFFER. Monday 9 July 2001. Trevor Flugge Chairman, AWB. ¨. HISTORY OF AWB. 60 years experience in marketing Australian wheat 1989 – Domestic market deregulated and Wheat Industry Fund established 1998 – AWB corporatised

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AWB LIMITED’S INITIAL PUBLIC OFFER

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  1. AWB LIMITED’S INITIAL PUBLIC OFFER Monday 9 July 2001

  2. Trevor FluggeChairman, AWB ¨

  3. HISTORY OF AWB • 60 years experience in marketing Australian wheat • 1989 – Domestic market deregulated and Wheat Industry Fund established • 1998 – AWB corporatised • 1999 – AWB privatised as grower owned and controlled corporation

  4. AUSTRALIAN WHEAT INDUSTRY Australia exports 80% of its total average wheat production Wheat production is about 20 - 21 million tonnes per year WHEAT GROWING AREAS

  5. AWB OVERVIEW AWB activities account for: • 3% of Australia’s total exports • 12% of Australia’s total farm exports • Average 17 million tonnes of bulk wheat exported per year • Markets to 50 countries • Total revenues of approx $5.5 billion (of which $3.5 - $4 billion related National Pool sales)

  6. GLOBAL WHEAT TRADE 1999/2000 total wheat trade -100 million tonnes EU16% Canada19% Other8% Argentina9% USA30% Australia18%

  7. AWB STRENGTHS Expertise in: • Pool Management Services • Financial & Risk Management for Wheat Growers • Domestic Marketing of Wheat and other Grains • Investments in Distribution Infrastructure

  8. CORPORATE STRUCTURE Dual class • 35,000 A class shareholders • 1 share each with weighted voting • 64,500 B class shareholders • 242 million shares issued

  9. BENEFITS OF LISTING • Fair value for existing shareholders • Increased liquidity • New equity to fund future development • Increased commercial disciplines

  10. AWB LIMITED’S INITIAL PUBLIC OFFER

  11. Andrew Lindberg Chief Executive and Managing Director, AWB

  12. AWB’S BUSINESS STREAMS Pool Management Services 2001F EBIT$9.3m Finance and Risk Management Products 2001F PBT$80.2m Grain Acquisition and Trading 2001F EBIT$70.3m Grain Technology 2001F EBIT($3.0m) Supply Chain and Other Investments 2001F EBIT$15.4m

  13. AWB’S FINANCIAL RESULTS • Full Year 1999/2000 - $63.3 million • Net Assets at 31 March 2001 of $648 million • Half Year 2000/2001 - $52.4 million (increase of 25%) • Half Year Dividend - 14 cents (Fully Franked)

  14. AWB INVESTMENT HIGHLIGHTS • Significant expertise and scale in global wheat marketing • One of the largest integrated global wheat managers • Large existing customer base • Manager of Single Desk • Potential to broaden range of products, services and customers in Australia & overseas • Strong balance sheet and dividend paying capacity

  15. AWB LIMITED’S INITIAL PUBLIC OFFER

  16. Paul InglebyChief Financial Officer, AWB

  17. AWB FINANCIAL FORECASTS • Full Year 2000/2001 Forecast - $79.4 million (increase of 25%) • Full Year Dividend = 22 cents (Fully Franked) • Pro-forma Net Assets at March 2001 of $743 million

  18. THE OFFER Public and Institutional Offers • Offered to clients of the Lead Manager and Retail Brokers and institutional investors • Underwritten by UBS Warburg $80 million underwritten Existing Shareholder Offer • Open to existing A and B class shareholders • Top-up, cash-out and New A class shareholder components Up to $20 million non-underwritten Employee Offer • Open to all existing employees of AWB • Guaranteed minimum allocation of 1,000 shares

  19. OFFER HIGHLIGHTS • Application Price = $3.15 • Share Issue = up to 31.8 million • Amount raised = up to $100 million • Market Capitalisation Post Offer = $860 million • Dividend Yield (Fully Franked) = 7.0% • Price to Earnings Multiple = 9.7 times

  20. OFFER TIMETABLE Offer Opens 23 July Offer Closes 15 August ASX Listing 22 August

  21. AWB LIMITED’S INITIAL PUBLIC OFFER Monday 9 July 2001

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