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  1. Investor Presentation December, 2004

  2. 2003 2003 Where we have come from … “Australia’s Leading Agribusiness” AWB acquired Landmark from WES Landmark acquisition 2001 WES acquired IAMA, merged it with Wesfarmers Dalgety to form Wesfarmers Landmark 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 1993 WES acquired Dalgety Farmers, merged it with Wesfarmers Rural to form Wesfarmers Landmark 1985 Wesfarmers Rural expands to eastern states 1998 Corporatised 1984 The Cooperative listed on ASX as Wesfarmers Limited (WES) 1989 Domestic market deregulated and Wheat Industry Fund established 1950 The Cooperative diversified with a rural focus Australian Wheat Board establishedas a statutory authority 1939 1914 Westralian Farmers Cooperative established 1840 Frederick Dalgety began servicing farmers in western Victoria; the well known Dalgety business eventually covered all States 1915 Australian Wheat Board created during World War I

  3. Market capitalisation: $1.6 billion A class shareholders: 26,161 64,383 Shares on issue: 342 million Institutional investors: 25.89% Shareholder’s equity: $1 billion Growers / retail shareholders: 73.20% Index inclusion: S&P/ASX 100 (75% IWF) Employee shareholders: 0.91% What we have achieved … B class shareholders:

  4. What we have achieved … • 90th largest company in Australia with market capitalisation of $1.6 billion, and revenues of $9 billion (incl Pool revenue) shareholder funds of $1 billion • Consistently out performed the S&P / ASX 200 since listing • Top quartile TSR (total shareholder return) last three years • Weathered the worst drought in 100 years • Success in Iraq – 1.5m tonnes renegotiated • AWB constructed 21 grain centres with a total capacity of over 3m tonnes • Positioned to tap into growing Asian markets • Integration of Landmark 95% complete • EBIT enhancements for 2003/04 of $13 million exceeded target of $5-10 million • Strategic focus on customer management, introduction of CMS system • Progressive business expansion

  5. 100,000 customers Grain $5-$6b revenue Fertiliser 1.2m tonnes Livestock 2.0m cattle 11m sheep Wool 500k bales Real Estate $800m sales Finance & Insurance $2.0b loan book $300m on deposit $120m premium 2,700 employees 431 outlets What we are today … Merch $1.2b sales

  6. What we are today … Australia’s leading agribusiness • Markets approx. 18 mmt wheat internationally representing 16% of total world wheat trade • Largest supplier of farm inputs and rural merchandise • Handles approx. 20% of national wool clip • Handles approx. 20% national livestock trading • Annual turnover in excess of $4.0b • Finance Loan book in excess of $2.5b • Over 2,700 staff in Australia and overseas • US/ Euro commercial paper issued this financial year totals USD3.8b • FX spot transactions (ytd Sep 03) totals USD20b

  7. Group structure AWB Limited Commercial operations Pooling operations Pool Management Services Finance & Risk Management Grain Acquisition & Trading Supply Chain & Other Investments Grain Technology Landmark

  8. Financial objectives Return on equity - Achieve 15% return on equity for the AWB Group in the medium term Solid EPS growth - Landmark acquisition to be more than 35% EPS accretive (pre-goodwill, post synergies, post one-off costs) by 2005-06 Stable dividend payment - Expect to maintain dividend payment at current levels for 2004-05 Improve quality of earnings - Reduce exposure to crop by achieving more than 20% of PBT not related to Australian wheat by 2004-05

  9. Leading position in Australian rural services People and Capability Leading rural financial services and insurance provider Australia’s leading global grain trading business Targets will be achieved by implementing three dominant business strategies AWB’s overarching goal is to implement anIntegrated Business Model...

  10. Three growth areas • Fertiliser and merchandise are the main areas targeted for growth • Cross selling • Leverage buying power in the network • Improve merchandise and supply chain effectiveness Leading position in Australian rural services • Increase product base – build on AWB’s natural advantage to provide a wider range of products, better interest rates, and streamline credit processes • Specific areas targeted for growth include lending, deposits, wealth management and general insurance Leading rural financial services and insurance provider • Continue to focus on mandate to maximise grower returns • Expand the suite of commodities, origins and risks managed • Strengthen the differentiated position for Australian wheat Australia’s leading global grain trading business

  11. Strengthen core business, in particular preserve and enhance the value of the Single Desk system Grow and diversify to improve the quality of the earnings base and reduce wheat harvest volatility The way ahead … “To be both the primary producer’s and end-use consumers’ business partner of choice” • Acquisition expected to achieve target 15% ROE by FY2005 • EPS accretive in FY 2004 and by more than 35% in FY2006 • % of PBT not related to Australian wheat: >20% in 2004/05 • Landmark will diversify AWB’s earnings base and reduce volatility of AWB’s earnings • AWB Group will achieve 15% ROE in the medium term

  12. APPENDICES 1. 2004 Full Year Results Slide 13 2. Rural services Slide 38 3. Network operations Slide 51 4. Wheat prices, futures & global supply Slide 62 5. Financial services Slide 71 6. Trading Slide 79

  13. APPENDIX 1:2004 Full Year Results

  14. AWB has delivered a strong result • Exceeded profit guidance (2003-04 forecast) • Strong revenue growth • Significant progress on the integration of Landmark • Strong balance sheet • Quality credit ratings • Positive outlook for next year

  15. Result highlights • Net profit after tax (pre goodwill and amortisation) of $134.7 million, up 191% (exceeded forecast of $110 - $120 million pre goodwill and amortisation). Net profit after tax of $96.9 million, up 121%, post goodwill and amortisation • Total operating revenue of $5.3 billion, up 142% • Landmark integration targets exceeded, with $13 million achieved in revenue, cost synergies, and finance growth • Earnings per share (pre goodwill and amortisation) of 40.1 cents, up 139%. Earnings per share of 28.8 cents, up 81.1%, post goodwill and amortisation • Final dividend of 11 cents per share, fully franked, amounting to 25 cents per share for 2003-04 • Significant contribution from Grain Acquisition and Trading, particularly Chartering • AWB Harvest Finance loan book peaked at $1.6 billion in February 2004 • Landmark loan book balance of $1.1 billion at 30 September 2004 (record high) • Gross Pool Value currently estimated at $4.8 billion for the 2003-04 Pool ($1.3 billion in 2002-03) • Australian wheat production rebounded to 25.2 million tonnes (9.7 million tonnes in 2002-03)

  16. Statement of financial performance 1OEI = Outside Equity Interests * Post goodwill and amortisation

  17. Change in debt position * Net of proceeds

  18. Capital expenditure • 3 year building program for grain centres has been completed • Expenditure on system development and other PP&E is related to IT, upgrades, motor vehicles (Landmark) • New building costs relate to the relocation of Head Office in January 2004 (new building is leased)

  19. Statement of financial position

  20. A-IFRS Impacts • Employee share schemes, including performance rights, to be expensed • Goodwill to be subject to annual impairment testing rather than amortised • Asset impairment testing will allow for fair value or discounted cash flows as recoverable amount • Inventories held as a commodity trader will be able to be measured at fair value less costs to sell • Financial instruments will be subject to prescriptive classifications and hedge accounting requirements. May lead to more fair value recognition in P&L and Balance Sheet • Deferred tax liabilities and assets will incorporate the tax consequences of transactions recognised in the balance sheet

  21. Business operations (PBT) 1OEI = Outside Equity Interests * Post goodwill and amortisation

  22. Business operations - performance +$69m -$10.8m -$24.6m -$35.2m +$10.5m - $6.1m - $14.7m +$56.3m $96.9m + $8.6m $43.9m * * Note: + / – change is PBT * Post goodwill and amortisation

  23. Pool Management Services Agrifood and Research & Development (formerly Grain Technology) • Agrifood technology and R&D now reported under Pool Management Services (the Seeds business is now in Landmark) • AWB will continue to fund a significant R&D program for the long term benefit of the company – this is an important investment for the future

  24. Grain Acquisition & Trading Domestic Trading • Increased its PBT contribution by 104%, with 3.2 million tonnes of wheat traded and 953,000 tonnes of other grains traded domestically Chartering • Chartering division contributed $48 million PBT to the Trading division’s result, with freight volumes increasing by 83% compared to the previous year • Successfully employed a long physical trading strategy in a rising freight market • Chartering strategy was backed by robust risk position management, with limits monitored daily AWB Geneva • Significant improvement to PBT contribution with over 2.0 million tonnes traded, which is a 67% increase on the previous year’s tonnage • Significant contribution by Chartering

  25. Supply Chain & Other Investments GrainFlow • Record receivals of 1.8 million tonnes for AWB GrainFlow, up from 185,000 tonnes in 2002-03, mainly due to improved seasonal conditions Melbourne Port Terminal (JV with Australian Bulk Alliance) • Throughput of over 1.3 million tonnes, up 177% from the previous year Overseas Investments • Overseas investments performed well • AWB has determined to divest its interest in Vietnam Flour Mills • AWB will continue to explore other overseas investment opportunities

  26. Finance & Risk Management Financial Services • Market share has been maintained by offering a varied combination of products, and the interest rate spread has been maintained • Tonnage underwritten increased to 11.7 million tonnes as a result of improved seasonal conditions RiskAssist, Basis Pool and OTC (over-the-counter) operations • Decreased PBT contribution from the risk management businesses due to a decline in popularity of the Basis Pool product and a return to more normal market conditions (compared with 2002-03 and 2001-02) • Growth in RiskAssist sales to Australian and International customers Treasury • Treasury management contributed PBT of $6.5 million which was $4.0 million below the previous year due to a return to normal market conditions

  27. Finance & Risk Management (continued) -$9.9m +$7.8m $36.1m -$4.0m $30.0m

  28. Landmark • All activities (except Wool operations) have outperformed when compared with the previous year • Merchandise & Fertiliser sales increased by 10%, margins also improved • Livestock gross profit increased by 17% due to higher cattle prices and increased sheep volumes • Wool gross profit reduced by 8% due to lower wool prices • Real Estate sales value increased by 31% due to increased demand for prime rural property • Finance gross profit increased by 54% with the loan book balance of $1.1 billion (record high) and IBD’s increasing to $304 million • Insurance gross written premiums increased by 20% • AWB Seeds – gained over 60% of available wheat variety licences over the past 5 years, and captured 7 new licences during 2003-04 (chick pea and lupin varieties)

  29. Landmark - gross profit growth across product lines Gross profit $million 1 2003-04 2002-03 1 Only one month incorporated in AWB Group’s results in 2002-03

  30. Corporate Corporate items • Costs include governance, compliance, shareholder services and strategic development • Integration and restructuring costs associated with Landmark of $8.0 million Group funding interest • Group funding interest revenue of $4.8 million • Interest previously earned from surplus capital now reported under “Corporate” - significantly lower than the previous year due to funding requirements for the Landmark acquisition Miscellaneous Revenue items • $5.3 million profit on sale of Ceres House (Melbourne) and Grains House (Adelaide) • $7.4 million in Futuris dividends Corporate items includes corporate overheads, miscellaneous revenue items, and the net result from group funding

  31. Integration achievements and on going initiatives • Integration achievements thus far • Network consolidation and re-branding of all branches • Back office consolidation - relocation of critical staff to Melbourne • Recruitment of finance and insurance specialists • Incentive program implemented for all staff • AFS license and transfer of IBD arrangements with 85% retention rate • Phase 1 procurement completed with improved terms and conditions negotiated • Launch of Fastrak Finance • At least 95% of the way through the integration stage, and 15% of the way through the growth stage • Ongoing initiatives • Implementation of the Integrated Business Model due to take place over the next year • Financial Services will continue to focus on product development to improve overall offer to the customer • Grain Marketers and key branch staff will continue to focus on cross-sell opportunities • The final Procurement category - IT will be finalised by the middle of next year

  32. The first year synergy result of $13m exceeded the target $5-10m EBIT uplift Revenue, cost synergies and finance growth (EBIT) FY forecast $30 - 40m $13m (actual) FY forecast $20 - 25m 2004-05 2005-06 2003-04

  33. With the integration of AWB & Landmark now achieved, the focus is on creating value and implementing the Integrated Business Model

  34. Dividend Final dividend of 11 cents per share • Full dividend = 5.2% yield (as at 18/11/04) Dividend dates: • Ex dividend date – 29 November 2004 • Record date – 3 December 2004 • Payment date – 17 December Dividend Reinvestment Plan (changes) • DRP shares will be sourced by a combination of an on-market purchase of shares and new issue • Nil discount offered • Pricing period will be of 7 days trading immediately after the record date (3 December 2004), therefore from 6 December 2004 to 14 December, 2004 inclusive • DRP election form must be received by 3 December 2004

  35. AWB remains focused on its financial objectives AWB will focus on achieving solid financial growth, stable dividend payments, efficient capital management, improved quality of earnings and 15%* return on equity in the medium term (subject to normal seasonal conditions) Landmark integration • Focus on further integration and achieving earnings targets of $20-25 million EBIT in 2004-05, and $30-40 million in 2005-06 Finance & Insurance businesses • Continue with current strategy of leveraging strong relationships with AWB and Landmark customers to offer the full range of lending, deposit and insurance products Landmark - Livestock, wool and merchandise • Sheep flock forecast to grow 4.3% during 2004-05, though we do expect some lagging impact from the previous drought on overall volumes of livestock and wool • Cattle numbers are expected to reach 27.6 million head, and the sheep flock is forecast to reach 99.5 million head in 2004-05, (Source: MLA) • Australian wool volumes are forecast to increase to 470 million kilograms greasy in 2004-05 (Source: ABARE) • The market for merchandise and fertiliser is promising, and meat prices look set to remain strong * Pre goodwill and amortisation

  36. Global wheat market and opportunities Wheat production forecast • Estimated by AWB to be between 20 - 22 million tonnes in 2004-05 Global wheat market outlook – production, consumption and price • World ending stocks forecast to increase for the first time in five years with world wheat production expected to reach 616 million tonnes in 2004-05 as a result of good crops in both the major and non traditional exporting countries • World wheat consumption forecast to be 605 million tonnes, with human consumption demand increasing at a long term trend of 1% • Production and export supply from the Russia and the Ukraine are likely to increase • Production risk premium has been removed from the market and this has seen Kansas futures decline from in excess of US$4 bushel to US$3.40 bushel • APW National Pool return currently estimated to be $200 per tonne (weaker currency is supportive to price) Markets • AWB has a clear strategy to generate more value from the Australian wheat crop through an increasingly differentiated market position • AWB will focus on opportunities in various markets including China and Iraq

  37. Earnings forecast for 2004-05 Based on current seasonal and market conditions: • AWB’s 2004-05 earnings forecast is expected to be comparable to the 2003-04 earnings • AWB will focus on achieving Return on Equity target of 15% (pre goodwill and amortisation) in the medium term.

  38. APPENDIX 2:Rural Services

  39. A period of change • 2003 • Growth phase • Nationalised structure • Merchandise sales recovery • East Coast fertiliser expansion • Drive wool and livestock growth and productivity • National finance and insurance expansion • 2004 • Integration and growth • Capture cost and revenue synergy benefits • Centralise head office function • Expansion of financial services and growth • Drive wool, livestock and merchandise growth and productivity • Network optimisation • Account management • 2001 & 2002 • Merger Dalgety & IAMA • Achievement synergies • Maintain revenue in existing businesses • Establish new brand identity • Capture merchandise and logistics opportunities OBJECTIVE 2004-05: Integrated Business Model

  40. Merchandise • Merger of Wesfarmers Dalgety and IAMA in 2001 resulted in Landmark becoming Australia’s largest rural merchandise distributor • Stores across Australia stock a range of animal health, cropping, fencing, fertiliser and farm hardware product • Merchandise products are distributed via 230 company owned branches, 47 franchises and 120 members and agents, and supported by over 200 agronomists Australia wide

  41. Merchandise overview … a generic strategy will be important

  42. Fertiliser • Significant supplier of fertiliser distributing over 1 million tonnes per annum, as well as retailing liquid, trace element and specialist fertilisers • The major fertiliser products are globally traded commodities, resulting in: • Limited scope for differentiation between retail outlets; and • Importer traders ensuring world price movements rapidly flow through to domestic price (i.e. volatility)

  43. Fertiliser overview … growing market share and volume is important

  44. Livestock • One of Australia’s largest marketers of livestock • Operating in all States and Territories throughout Australia • Handles 20% of livestock trading in Australia • Core business is sale of livestock through saleyards - 70% sold via auction • Livestock trading is also a part of the business • Landmark supplies processors, supermarket processors, lot feeders and live export markets

  45. Livestock overview … prices are expected to remain strong

  46. Wool • Handle approximately 25% of the National Wool Clip (500,000 bales) • Provide traditional broking / auction selling services as well as a comprehensive range of Risk Management products • 50% interest in Australian Wool Handlers ‘AWH’ (with Elders) –wool handling • Not involved in any downstream processing

  47. Wool overview … increased throughput is the key

  48. Landmark real estate has two main activities: Real Estate - Rural property sales - Residential property sales

  49. Real Estate overview … good platform to grow residential market share

  50. Outlook • Opportunities exist to grow in most activities • Commodity prices expected to remain strong • Real Estate values expected to plateau