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Management Presentation 27 th September 2002. Corporate Strategy. Andrew Lindberg Managing Director 27 th September 2002. Our financial objectives are clear. Target: 15% ROE Consistent trend EPS growth Stable dividend Improve quality of earnings Efficient capital management.

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slide1

Management Presentation

27th September 2002

corporate strategy

Corporate Strategy

Andrew Lindberg

Managing Director

27th September 2002

our financial objectives are clear
Our financial objectives are clear
  • Target:
    • 15% ROE
    • Consistent trend EPS growth
    • Stable dividend
    • Improve quality of earnings
    • Efficient capital management
the global asset manager model defines long term growth as being both vertical and horizontal

Milling & Processing

International other grains & commodities

  • Customer Relation-ships

Shipping

International wheat

Finance & Risk Mgmt.

Solid domestic base enables domestic value chain integration and international growth

Pool Mgmt.

Australian other commodities

Value adding products and services

Grain Acq. & Trading

  • Grower Relation-ships

Supply Chain

Australian other grains

Rural Services Inputs

Australian wheat

Seed & Grain Tech.

The global asset manager model defines long term growth as being both vertical and horizontal
in order to achieve our objectives awb has clearly defined strategies
In order to achieve our objectives, AWB has clearly defined strategies

Maximise value for growers, customers & shareholders

specific near term initiatives will support our strategies
Specific near term initiatives will support our strategies
  • Diversify domestically and offshore
    • Expand finance & risk management offerings
    • Strengthen position in Asia and Middle East and develop global trading business (Geneva)
    • Step up investigation of M&A opportunities
  • Increase grains under management
  • Strengthen our rural services base
  • Supply chain investments that provide commercial returns
  • Active capital management
  • Ensure effective cost control
in 2001 02 awb strengthened its core business
In 2001/02 AWB strengthened its core business …
  • Strengthen core business to sustain performance
    • Further improvement to a key under-performing business area - Chartering
    • Strengthening of the performance of the Single Desk and implementation of new performance based remuneration model
    • Broaden financial and risk services to growers and customers
    • Strengthen grower/rural services and financial advisory networks
    • Development of AWB supply chain network with capacity of around 3mt
    • Development of superior grain varieties through a JV with Syngenta
    • Establishment of new business processes, systems and product development capability
slide8

Diversification … through acquisitions, other grain trading, non-pool chartering and global trading will result in a lower reliance on Australian wheat receivals

NPAT Diversification ($m)

3%

10%

20%

Other grain and non-Aust wheat & Diversification

90%

80%

97%

Wheat related

(f) = AWB forecast (p) = AWB Plan

m a activity is important to assist diversification
M&A activity is important to assist diversification

Environment

Initiatives

Planned Outcomes

  • Review of management of Single Desk in 2004
  • Increased competition from domestic and global players
  • Rationalisation of domestic supply chain
  • Opportunities in other commodities, other grains
  • Offshore opportunities
  • Less than 80% reliant on wheat by 2004/05
  • 15% ROE target
  • Establishment of platforms for further growth and diversification
  • Efficient capital management
  • Further pursue and review opportunities in the value chain, other grains, other commodities
  • Assess other opportunities for strategic fit as they become available
  • Continue to manage current overseas investments
investment highlights
Investment highlights
  • Significant expertise and scale in global wheat marketing
  • One of the largest integrated global wheat managers
  • Large existing customer base
  • Manager of the Single Desk
  • Potential to broaden range of products, services and customers in Australia and overseas
  • Strong balance sheet and dividend paying capacity
capital management risk management financial services

Capital Management, Risk Management & Financial Services

Paul Ingleby

Chief Financial Officer

27th September 2002

capital allocation
Capital allocation

Capital is allocated (notionally to businesses)

  • Main businesses that use capital are:
    • Finance & Risk Management Products
    • Grain Acquisition & Trading
    • Supply Chain & Other Investments
  • Other business streams include:
    • Grain Technology
    • Pool Management Services
capital management
Capital management
  • We allocate capital using a top-down and bottom-up approach
  • We consider a range of factors such as targeted credit rating, value at risk and the universe of agricultural operations and product companies
  • As an indication, for 2001/02 we allocated:
    • Finance & Risk Management Products $150m
    • Grain Acquisition & Trading $200m
    • Supply Chain & Other Investments $100m
  • Other main capital uses include corporate assets
  • As we diversify we will allocate capital accordingly
capital management cont
Capital management (cont)
  • Capital management means getting maximum value from capital through leverage within risk range
  • We target rating levels and to some extent this will determine if we have excess capital
  • We are continually looking at ways to grow the business
      • Organically
      • Investments in end use assets
      • Investments in supply chain
      • Acquisitions
capital management cont1
Capital management (cont)

Commercial Paper

  • We fund the company and therefore businesses through 3 commercial paper (CP) programs – AUD, US & EURO
  • We have a relationship bank panel of 16 throughout the world. These banks provide liquidity support i.e. ability to fund company at all times even when markets are tight
  • Last year AWB issued over $US5b in CP
  • We are an active participant in the FX, Options and Swaps markets
capital management cont2
Capital management (cont)
  • We are constantly looking at the mix of capital and debt in relation to the opportunities available to us
  • Depending on the range and size of these opportunities we will consider the structure of the balance sheet for maximum value to shareholders
  • This will include raising some long term debt (none currently) which could take the form of medium term notes, private placement, or hybrid securities.
  • We will consider a share buy back if this makes sense for shareholder value
risk management
Risk management

AWB comprises of a range of businesses with a range of risk profiles.

AWB has a focus on risk management:

  • Corporate Risk Board Committee (CRBC)
  • Corporate Risk Review Committee (CRRC)
  • Corporate Risk Unit (CRU)

Key factors are:

  • Physical sales
  • Foreign exchange management
  • Wheat price management
  • Administration
  • Governance
financial services product range has been expanded to provide more flexibility to growers
Financial services product range has been expanded to provide more flexibility to growers

Environment

Initiatives

Planned Outcomes

  • Reliant on value of national wheat export crop
  • Increase in cash purchases decreases market available for loans
  • Increased competition from banks, particularly NAB, ANZ and CBA
  • Expand financial services to offer more cashflow choices for grain marketing decisions
  • Opportunity to introduce wealth creation products and strategies to growers
  • New Group GM of Financial Services, Marcus Kennedy
  • Expand loan products:
    • Harvest Loan
    • Flexible Drawdown Loan
    • Pre Delivery Loan
  • New payment products:
    • Advanced Payment
    • Deferred Payment
  • Strengthening of grower services network
  • 6 new Regional Financial Services Managers as on-ground product experts
  • Pool payment options take-up above 65%
  • Enhanced relationship with growers from more flexible product suite
  • Improved skill set and product knowledge of staff in marketing financial services
  • Improve ‘time to market’
  • Wealth creation pilot program
grower interface

Grower Interface

Tim Goodacre

Group General Manager Corporate

27th September 2002

grower profile
Grower profile
  • 35,000 grain growers
  • Average wheat yield = 1.91* tonnes per hectare
  • Average wheat grower cash income = $113,503*
  • Average size of grain cropping per farm = 500ha
  • Average wheat tonnage produced per grower = 600t
  • Average wheat delivered to AWB per grower = 480t
  • Grower attitudes**
    • 88% support the Single Desk
    • 88% support AWB’s management of the Single Desk

*Average over 3 years to 2001-02, source = ABARE ** Independent Survey, 2002

the relationship with growers will be enhanced by a stronger rural presence
The relationship with growers will be enhanced by a stronger rural presence

Environment

Initiatives

Planned Outcomes

  • Increased competition by banks and bulk handlers
  • New more flexible suite of AWB products
  • Growers perceive AWB is heading in the right direction
  • 88% grower support for Single Desk marketing
  • Expanded grower services network
    • 63 AWB regional staff (plus 6 financial advisers)
    • 25 AWB regional offices
    • 10 agencies
  • Continue to enhance existing deep relationship with growers
  • Maximise market penetration
  • Retention of Single Desk beyond 2010
strategy to further enhance grower relations
Strategy to further enhance grower relations

Formation of Grower Relations Division with mission to:

  • Maintain and build grower support for AWB and AWB managed Single Desk
  • Further align AWB with the commercial needs of growers
national pool and the pool services management model

National Pool and the Pool Services Management Model

Sarah Scales

General Manager National Pool

27th September 2002

slide28

Relationship of the WEA, AWB & AWBI

AWB

Business services

Monitor performance of AWBI

Wheat Export Authority

Wheat marketing

AWBI

Export markets

Wheat deliveries

Pool payments

Growers

performance based remuneration
Performance Based Remuneration

Environment

Initiatives

Planned Outcomes

  • About 50% decreased crop value in 2002/03 compared to 2001/02
  • 2002-03, second year of OPI arrangements
    • First year of OPI entitlement from previous year
  • Review of management of Single Desk in 2004
  • Focus on performance improvement
  • Management of the relationship with the WEA
  • OPI implementation
  • Retention of Single Desk beyond 2010
  • Performance based remuneration system fully integrated into business
  • Continued maximisation of returns to growers through pool out-performance

Note: OPI = Out Performance Incentive

slide30

AWB(I)’s Mandate

Maximise net returns to National Pool Growers

  • Maximise USD FOB price obtained
  • Minimise USD/AUD rate
  • Minimise domestic supply chain costs deducted from growers

Actively manage the main harvest risk exposures

  • Management of wheat price, currency and domestic supply chain cost exposures

Total harvest coverage

  • Accept delivery of all grades of Australian wheat (subject to minimum quality standards)
  • Sell all Australian wheat delivered to the National Pool in the pool period
slide31

AWB(I)’s Pool Management Performance Benchmark - WIB

  • WIB designed to measure AWBI performance consistent with mandate
  • Integrated nature of risk and return
    • Price
    • FX
    • Supply Chain costs
  • Applicable to market:
    • World/Competitor prices
    • Liquidity, demand, capacity constraints.
  • Seasonal pool basis – applicable to management and growers

1. USD Wheat Price

Sub- benchmark

WIB Pool Benchmark

2. FX (AUD/USD)

Sub- benchmark

3. Domestic Supply Chain Sub- benchmark

slide32

A performance hurdle is necessary to reconcile AWB(L) decision making ability with the full AWB(I) mandate

Hurdle Components

Freight advantage:

  • Reflect price advantages/ disadvantages available to any Australian wheat exporter

Single Desk Advantage:

  • Reflect the market power available to any manager of the Single Desk System
slide33

Performance Based Remuneration Model

The performance based remuneration model has a two-tiered payment system consisting of:

  • Base Fee
    • 1.5% of Gross Pool Value(GPV)
    • Subject to a cap of AUD$60m and a floor of AUD$45m (CPI indexed)
    • Effectively covers operating costs to provide services to AWB(I)
    • Reduces risk to both AWB(I) and AWB(L)
  • Out-Performance Incentive (OPI)
    • Calculated as 20% of revenue generated above the WIB plus hurdle: = [GPV – {WIB + HURDLE}] x 20%

Total cap of 3% of GPV, limiting risk to AWB(I)

slide34

Conclusion

  • Consistent with the Pool mandate:
    • Strives for out-performance within defined risk parameters - balancing grower risk and grower rewards (Pool Returns)
    • Does not strive for maximum returns regardless of risk
  • Transparent, objective, auditable
  • Provides incentive to the manager to maximise grower returns
  • Grower preference: reflects main revenue and cost drivers for the National Pool & links AWB(L) remuneration to Pool Performance
  • Practically applicable to the business & consistent with industry standards
  • Quantifies and limits remuneration risk to AWB(I) and AWB(L)
  • Encourages AWB(L) to invest in achieving out-performance
grain acquisition trading

Grain Acquisition & Trading

Peter Geary

Group General Manager Trading

27th September 2002

domestic and global trading
Domestic and global trading

Grain Acquisition & Trading

Domestic

Global

  • Contract Acquisition Products
    • 70 Regional based representatives
    • 2 million tonnes committed prior to harvest 2001/02
  • Domestic Trading
    • Wheat and other grains
    • 50 domestic customers
    • Grain traders
    • Pool transfers
    • Normally trade 4.5 to 5 million tonnes
  • Non Wheat exports
    • Canola, sorghum, barley
  • Establish global trading business in Geneva
  • Establishing new trade flows with new customers
  • 02/03 opportunity to supply existing customers other origin wheat
  • Global trading to trade 1.5 million tonnes in 2002/03
our domestic trading strategy
Our domestic trading strategy
  • Grain is predominately accumulated incrementally from growers
  • Grain is physically priced with customers or priced in the derivatives market leaving a basis position to trade
  • AWB also trades with other grain companies which increases the volume of grain trade and liquidity to close physical positions
  • Positions will be built and transferred to the Pool in the appropriate circumstances
  • Major factors impacting trading strategy for growers in 02/03
    • Domestic regional shortages in high domestic demand areas
mix of traded grain
Mix of traded grain

mt

2002/03 we could see:

  • Forward contracting approaching 2000/01 levels
  • East coast cash prices are outstripping national pool returns and will be primarily trade for cash
  • Transfers to the pool, (other than on east coast) but at reduced levels

(p) = AWB projection

trading risks and how we manage them
Trading risks and how we manage them
  • Local production – volume traded
  • Price volatility – production in exporters & importer
  • Foreign exchange exposure – active management
  • Hedging is used to price physical exposures (not to speculate)
  • Basis trading – requires correctly positioning physical product in line with movements in basis
  • Drought conditions result in contract washouts
    • replacement cost to protect position
    • credit risk of collecting washout settlement
grower demand for risk products increasing
Grower demand for risk products increasing

Environment

Initiatives

Planned Outcomes

  • Grower demand for risk products increasing
  • Opportunity to expand the range of contract alternatives to growers
  • Opportunity, as part of trading group, to provide solution selling to end users
  • Expanded range of risk management products:
    • Basis Pool
    • Riskassist – Basis Pool Products
    • Riskassist – Fixed Basis Contracts
    • Riskassist – Consumer Risk Services
  • Increased take-up of Riskassist
  • Stronger relationship with growers
  • Contribution to securing end user demand through solution selling
supply chain investments chartering

Supply Chain Investments & Chartering

Jill Gillingham

Chief Operating Officer

27th September 2002

agenda
Agenda
  • Objectives for supply chain
  • Outline of supply chain strategy
  • Examples of returns
  • Chartering
objectives for supply chain
Objectives for supply chain
  • Reduce costs
  • Improve efficiency
  • Secure grain for the long-term
  • Commercial return on capital invested

Strategy

East Coast:

Compete

West Coast:

Collaborate

domestic supply chain strategy
Domestic supply chain strategy

Environment

Initiatives

Planned Outcomes

  • Supply chain costs of $1.4b
  • Domestic supply chain inefficient
  • Old infrastructure BHCs have geographic monopolies and employ traditional uniform pricing structures
  • Freight companies with traditional monopolies have also employed uniform pricing structures
  • Susceptible to competition from new entrants with modern infrastructure and differential pricing
  • New grain centres built
  • On farm storage pilot being conducted during the 2002/03 harvest in Southern NSW
  • Investment in NSW rail and grain handling infrastructure via joint rail freight agreement with FreightCorp
  • Purchase of rail wagons – leased to Freight Australia
  • Port options being investigated
  • JV / Merger options being investigated with CBH and Grain Pool of WA
  • Supply chain optimisation
  • Deliver a return on investment above weighted average cost of capital
  • OPI for supply chain sub-benchmark
  • Increase AWB’s ability to access the wheat flow
  • Strategic hedge against deregulation
expenditure on awb grain centres
Expenditure on AWB grain centres*

* 17 Grain centres have been announced

grain centres dimboola grain centre
Grain Centres – Dimboola Grain Centre
  • Investment of $11.3m in 1999

Note: WDV = written down value

grain centres standard new site
Grain Centres – Standard new site
  • Investment of $7.3m for each site
current investments melbourne port terminal
Current Investments – Melbourne Port Terminal
  • Investment of $18.6m in 2000

Note: AWB’s financial year differs from the contract period. High payment rates for initial tonnages are spread between alternate years leading to the variation in financial results shown above.

current investments rail wagons
Current Investments – Rail Wagons
  • Investment of $5.4m in 2001
chartering contract flow
Chartering contract flow

One Parcel of Grain

Three AWB Contracts

Customer

1

CFR or FOB+FR

National Pool/Trading

  • Freight offer by
  • Chartering
  • “Market on the Day”
  • No margin
  • Net of Adcom

2

FR

Chartering

Chartering

Position Takers

plus Success Fee

FR

3

External

objective is to increase non pool chartering
Objective is to increase non-pool chartering

Environment

Initiatives

Planned Outcomes

  • Pool chartering dependent on size of export crop
  • Market conditions putting pressure on trading margins
  • Opportunity to expand non pool business
  • Opportunity to increase market penetration of chartering through global trading
  • Increase pool tonnes sold CFR
  • Build a chartering program to achieve economies of scale thereby enabling globally competitive rates for non pool chartering
  • Develop freight function in Geneva to complement Global Trading
  • Increase tonnes sold CFR to around 55% by 2004/05
  • Triple non pool chartering tonnes by 2004/05 (to 1.6mt)
  • Charter 2.0 million tonnes from Geneva office by 2003/04
summary
Summary
  • Reduce costs
  • Improve efficiency
  • Secure grain for the long-term
  • Commercial return on capital invested
wheat receivals currently have significant impact on profit
Wheat receivals currently have significant impact on profit

+/- $6 - 7m

+/- $1m

+/- $3m - 4m

+/- $2m - 3m

opportunity to introduce wealth creation products and strategies to growers
Opportunity to introduce wealth creation products and strategies to growers
  • $3.5-$5B in gross pool value per annum
  • Each crop farm has $70,000 in liquid assets ($31k shares, $17k deposits)
  • Average balance of Farm Management Deposit account is $40,000 (medium/long term investment product)
  • Succession planning issues for growers
  • AWB has strong brand name with growers
  • Pilot program in 2003

Source: ABARE, Australian Farm Surveys Report 2001. Dept of Fisheries, Agriculture and Forestry Australia

strengthening our financial services manufacturing and distribution capability
Strengthening our financial services manufacturing and distribution capability
  • Marcus Kennedy, new Group General Manager Financial Services
    • Strong financial services background
  • Grower Services Division
    • 63 regional staff, 25 regional offices and 10 agencies
  • 6 new Regional Financial Services Managers
    • On-ground product experts
  • Product Development Division
    • Improving ‘time to market’ capability
  • New SAP system which enables products to be built in-house rapidly
awb national pool
AWB National Pool

International Sales & Marketing

AWB Limited manages AWB National Pool to maximise net pool returns to growers and provide Pool Management Services

Managing the Wheat Supply Chain

AWB Pool Management Services

Risk Management Services

Research & Development

Grower Services

awb national pool1
AWB National Pool

Maintains “paddock to plate”

Customers

Growers

National Pool

Integrated value chain

AWB Limited

Increases competition & drives cost savings

Freight

Receival & BulkHandling

Port

slide70

Managing to achieve AWB(I)’s Mandate

Management behaviour consistent with mandate:

  • Maximise Pool Returns within defined risk parameters
  • Performance Monitoring Models drives behaviour
  • Performance Monitoring Models consistent with mandate
  • Remuneration also drives behaviour
  • Remuneration therefore consistent with mandate and performance assessment of achieving mandate
management of paddock to plate marketing
Management of “paddock to plate” marketing
  • National Pool generates value for growers through managing the value chain from farm-gate to end user
  • “Line of sight” is maintained between customer and grower to ensure customers get the product they want and growers are rewarded for providing the product
  • National Pool shapes the quality profile of the crop by:
    • Setting receival standards
    • Developing binning and segregation strategies
    • Operating payment programs like Golden Rewards
  • National Pool meets customers’ growing requirements through sophisticated site selection of cargoes based on specific quality attributes of the grain from a region or even receival point.
  • Uses its customer relationships, its marketing ability and its confidence to back up the quality of the product to extract premiums and maintain and enhance market share
integrated management of the value chain
Integrated management of the value chain
  • In an effort to achieve cost reductions, the National Pool is becoming involved in tactical management of the supply chain
    • Strategic management of grain flows
    • Direct negotiation with service providers
    • Coordinating interface between storage and handling, freight and port services
  • Tactical management is increasingly allowing the National Pool to manage logistics and select most efficient distribution channels for specific parcels of grain
  • National Pool returns all value generated back to growers in full – efficiency gains, blending and swap revenues
driving competition in the supply chain
Driving competition in the supply chain
  • National Pool involvement at the tactical level critical to it carrying out its marketing program today and into the future.
  • New players prepared to invest in new assets eg. AWB, ABA, movement across borders
  • Incumbents investing in up grades and new sites to maintain their market position
  • Similar reductions have been seen where competition has been introduced in rail freight services
    • In NSW, have witnessed savings of between 8.3% and 17.5% depending on the level of competition on freight routes
  • These are real savings being passed on to growers in the form of lower costs
  • A more efficient industry will benefit all participants
slide74

USD Wheat Price Sub-benchmark

  • The benchmark aims to represent average USD price achieved for a passively managed portfolio of Australian Wheat (of known grade mix and volume) sold into global markets (of known global demand)
  • It has three core elements:
    • an expected price for Australian wheat based on the market prices of world traded wheat grades that can be related to Australian wheat prices
    • a sell-down (allocation to market) profile which takes account of capacity and demand constraints
    • a return from wheat price hedging in accordance with the Hedging Policy
slide75

FX (AUD/USD) and Supply Chain

Sub-benchmarks

FX Sub-Benchmark:

  • The FX benchmark aims to represent the currency outcome a passive manager could expect to achieve given the AWB(I) FX mandate and a passively managed $US wheat price exposure

Supply Chain Sub-Benchmark:

  • The Supply Chain benchmark, unlike export wheat and FX, there is no ‘market’ in supply chain services. AWB is the price maker.
  • The benchmark index aims to reflect the expected/passive outcome for supply chain costs,
  • It adjusts for cost changes outside the control of the pool manager, such as those caused by different harvest sizes.
  • It has three main components, Freight Costs, Bulk Handling costs & Port Costs
awb geneva office established
AWB Geneva office established

Business activities

  • Australian wheat sales
  • Non Australian wheat and feed-grain sales
  • Freight
  • Structured finance products/services
  • Risk management products/services

Investment structure

  • 100% AWBL ownership
  • US$20m capital investment via AWBL

Tonnes traded

  • 1.5mt in 2003

Management

  • Skill and capability of core team is strong
  • Office of 12
supply chain history in australia
Supply chain history in Australia
  • Established more than 60 years ago yet remains remarkably unchanged
  • Minor cost savings, competition and efficiency gains achieved in this time
  • Competition in the supply chain has historically been limited – only small number of new entrants
  • Incumbents still enjoy monopoly or near monopoly positions in their markets
  • Incumbents enjoy high profit margins on storage and handling business – up to 50%
  • BHC’s charge uniform prices across storage facilities leads to inefficient use of infrastructure
supply chain costs demand attention
Supply chain costs demand attention

On-Farm Storage & Transport

$250m

$50.45 supply

chain cost

Feed Wheat

$40m

Total supply chain costs = $1.4 billion

Domestic Customer

Milling Wheat

$100m

Land-Based

$750m

Export Customer

Sea-Freight

$260m

Note: based on wheat production of 24 million

slide81

Objective is to maximise asset utilisation

  • Grain consolidation facilities (GCF) provide coverage to all of network – including branchlines
  • GCFs resolve Port access issues
  • GCFs create two supply chains to allow train cycling on a 24 hour basis

Branchline Shuttle Trains

Werris Creek GCF

High capacity Shuttle Trains

Branchline Shuttle Trains

Stockinbingal GCF

High capacity Shuttle Trains

typical efficiency drivers for grain train transport
Typical efficiency drivers for grain train transport

*AWB grain centre sites designed for optimal interface with rail transport providers

longreach plant breeders jv
LongReach Plant Breeders JV

Research & Germplasm Enhancement

AWB Market Intelligence, Syngenta Technology, Genomics, Cereal Chem, Disease Biology, DNA Diagnostic, and Product Quality Performance Trends

GrainGene AWB/GRDC/CSIRO/Syngenta

Specific research projects

Commercial Breeding

Long Reach Plant Breeders

Product Development

Seed, Product Development & Distribution

AWB Grain Technology, AWB Seeds, Syngenta Seeds, Agrifood, Grain Development, Seeds Management, Distribution, End Product & Processing R&D

Grower Services & Supply Chain Management

Crop Management Solutions

Market Feedback (direction from AWB)

Bundles of grower products & services under collaboration agreement: Seed, Agronomic Inputs, Finance & Risk Mgt, Contract Production systems

Grain Products

Risk Mgt Marketing Customer Mgt

AWB Product Management: Acquisition, Segregation Mgt, Logistics, Marketing, Technical Services, Agrifood

Millers, End Users, Consumers

el ni o patterns generally last 12 18 months
El Niño patterns generally last 12 & 18 months

Price

($AUD)

Volume

(mt)

El Niño

El Niño

El Niño

El Niño

El Niño

f

Production: 5 yr ave = 21.1 mt 10 yr ave = 19.0 mt 20 yr ave = 17.3 mt

Area: 5 yr ave=11.8 m/ha 10 yr ave=10.7 m/ha 20 yr ave=10.4 m/ha

Source: ABARE f = forecast. Note: 5 – 20 yr averages include 2002-03 forecast

international supply demand
International supply & demand
  • 2002-03 world consumption expected to again exceed world production
  • 2002-03 carryover stocks forecast to decline for the fourth consecutive year
  • EU is the only majorexporting country forecast to increase production for 2002-03.
  • Continued competition from minorexporting countries despite production forecast to be slightly less than 2001-02.

Prod & Cons (mt)

Closing Stocks(mt)

2002-03 Global Prod 597mt, Cons 604mt

Source: USDA June 2002 & ABARE March 2002 (mt) = million tonnes (f) = forecast (z) = Projection

senior management1
Senior management

Office of the MD

Jean-Luc Boulanger

GM, Strategy &

Performance Mgt.

Richard Fuller

Company Secretary

Michael Thomas

Head of Investor Relations

Andrew LindbergMD, 49 Joined AWB 2000

Tim Goodacre

Group GM, Corporate, 48

Joined AWB 1990

Responsible for Grower Services, Public Affairs and HR.

Marcus Kennedy

Group GM, Financial Services, 43

Joined AWB 2002

Responsible for Financial Services & Product Development.

Paul Ingleby

CFO, 50

Joined AWB 1998

Responsible for Finance & Admin, Treasury, Trade Finance, Risk Mgt & Compliance, Legal, and Commercial Managers.

Sarah Scales

Group GM National Pool, 36

Joined AWB 1992

Responsible for managing National Wheat Pools and the Single Desk.

Peter Geary

Group GM, Trading, 41

Joined AWB 1985

Responsible for Domestic & Global Trading and International Sales & Marketing.

Jill Gillingham

Chief Operating Officer, 52

Joined AWB 2000

Responsible for Information Systems, Supply Chain Mgt, Chartering and Grain Technology.

Charles Stott

Group GM, Bus. Development, 43

Joined AWB 2000

Responsible for Investments, Mergers and Acquisitions.

slide91

For more information contact:

Michael Thomas

Head of Investor Relations

Ph: +61 3 9209 2064

Email: mthomas@awb.com.au