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Paul Ingleby, Chief Financial Officer

October 2003

Paul Ingleby, Chief Financial Officer

October 2003

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Contents

• The strategy

• Landmark – the acquisition

• The growth opportunity

• Outlook

• Appendix 1: AWB’s business

• Appendix 2: Landmark’s business

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“The strategy”

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Group Structure

AWB LimitedPooling operationsCommercial operations

Supply Chain & Other Investments

Supply Chain & Other Investments

Pool Management Services

Pool Management Services

Finance & Risk Management Products

Finance & Risk Management Products

Grain Acquisition & Trading

Grain Acquisition & Trading

Grain TechnologyGrain Technology

LandmarkLandmark

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Corporate strategy

Vision: “Australia’s leading global manager of agricultural commodity assets, services and flows”

Australian other grains

Australian other commodities

Australian wheat

International wheat

International other grains & commodities

Producers Relation-

ships

End-users Relation-

ships

Rural Services

Agricultural inputs and technology

Finance & Risk Mgmt.

Acquisition & Trading

Supply Chain

Milling & Processing

Pool Mgmt.

Val

ue

add

ing

pro

du

cts

an

d s

ervi

ces

Agricultural Commodities

In

teg

rate

d V

a lu

e C

ha i

n

Shipping

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AWB’s financial objectives

Return on equity - 15% return on equity in the medium term

Solid EPS growth (including Landmark)- EPS accretive (pre-goodwill, post synergies, post one-off costs) in 2003-04- More than 35% EPS accretive by 2005-06

Stable dividend payment- 11 cents per share for the 2003 final dividend- Expect to maintain dividend payment at current levels for 2003-04

Efficient capital management- Surplus capital utilised to part fund the acquisition of Landmark- Appropriate credit rating

Improve quality of earnings- Reduced exposure to crop size- Reduced proportion of earnings subject to principal risk

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“Landmark – the acquisition”

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Landmark strengthens AWB’s core wheat business & achieves substantial diversification in rural & financial services

• Integration, extraction of synergies and building of growth platforms will be a major focus in 2003-04

• Landmark distribution network and Rabobank relationship will be growth enablers in Financial Services

• AWB will continue to strengthen its grain business by seeking arrangements with bulk handlers allowing competitive access to ports and by securing end user demand

• Strong focus on cost and capital management will help prioritise business opportunities, whether in existing business streams or beyond

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The acquisition of Landmark creates a unique ‘one stop shop’ for the farmer

Enhanced access to global markets for Australian agriculture • Access to over 40 countries around the world

Cross-selling• Cross-selling of products and services to farmers and international

customers

Overhead cost savings• Consolidation of AWB and Landmark corporate, head office and network

functions, where appropriate

Supply chain cost savings• Consolidation of procurement functions

• Leveraged logistical capability

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AWB and LandmarkDistribution Network

• Acquisition of Landmark dramatically expands AWB’s foot print across rural Australia

- 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)

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AWB and LandmarkIndicative financial position as at acquisition date1

(A$m) AWB Proforma

Current Assets 1,573

Non Current Assets 1,087

Intangibles 591

Total Assets 2,660

Current Liabilities 1,105

Non Current Liabilities 616

Long Term Debt 585

Total Liabilities 1,721

Shareholders Equity 939

Net Working Capital (excluding Grower Loans)

378

Notes1. Subject to completion accounts2. Indicative only, following placement. Does not include equity raisings under the Share

Purchase Plan and Dividend Reinvestment Plan

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AWB and LandmarkProfit Opportunities

• Total EBIT enhancement opportunities, derived primarily from finance growth opportunities, assessed at A$5 - A$10 million in FY2004 increasing to A$30 - A$40 million by FY2006

• Detailed implementation plan has been established to pursue opportunities from Day 1

(A$m) 2004E 2006E

EBIT Growth Opportunities 5 – 10 30 – 40

AWB Management NPAT Forecastfor Merged Company1 100-110 na

EPS Accretion from Acquisition2 2%+ 35%+

Notes:1. Net profit after tax, pre goodwill amortisation including all one-off costs2. Based on AWB forecasts for FY2004 and FY2006, pre goodwill amortisation, includes all one-off

costs for FY2004

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Funding the acquisition A$250m Underwritten Equity Offer in Three

Tranches

• Institutional offer via bookbuild completed on 2 Sept 2003 with 41.1m shares issued at A$3.70. The placement was oversubscribed.

• The SPP currently on offer to retail shareholders with the offer closing 20 Oct 2003

• AWB will implement the DRP effective for the final dividend at a 5% discount, underwritten for the next three dividends to the extent that the placement and SPP raise less than A$250 million

PlacementPlacement Share Purchase Plan (SPP)

Share Purchase Plan (SPP)

Completed

Underwritten Dividend Reinvestment Plan (DRP)

Underwritten Dividend Reinvestment Plan (DRP)

Offer mailed out Commences next dividend(Dec 2003)

Commences next dividend(Dec 2003)

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“The growth opportunity”

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Harvest finance market

• Environment becoming increasingly competitive‑ Traditional players – NAB, Rabo, BHC’s

‑ Others players– WBC, ANZ, Regionals

‑ AWB product enhancements for 2003

• Performance & take up rates‑ 70% market share

‑ Majority Harvest Loan, but other product use increasing

• Cross sell opportunities between AWB & Landmark‑ Product bundling

‑ Landmark finance staff to sell AWB Harvest Finance

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The opportunity

Segment ‘C’

5,000 Corporate Enterprise$8b loans

Segment ‘B’65,000 SME agribusiness

customers$20b loans

Harvest finance to grain growers

Small<$200k

Finance to all agribusiness

Medium$200k-$1m

Large>$1m

Turnover

‘Farmers’ ‘Corporations’Product set

Segment ‘A’30,000 Grain / Broadacre

$2b loans

$30b of agribusiness lending in three broad segments

Source: ABARE, ABS, RBA, APRA, Jun 2002. Neil Clark & Assoc.

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Competitive opportunities

Competitors vary in their primary focus of attention

Profitability HighLow

Small

Large

Value Proposition #2:Finance led

Major BanksRabo

ERB

Oppor-tunity 1

Oppor-tunity 2

• 60 RFM/RFO’s• Understanding of

agribusiness risk• Rural distribution• Product bundling• Brand appeal to

agribusiness• Balance sheet

strength, funding, liquidity capacity

Value Proposition #1:Commodity led

• 300 agronomists• Broad product range• Rural distribution• Product bundling• Brand appeal to

agribusiness• Balance sheet

strength, funding, liquidity capacity

Landmark

Regionals

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Growth in Agribusiness lending

0

10

20

30

40

50

1997 1998 1999 2000 2001 2002 2003(f) 2004(f)2005(f) 2006(f)

10% CAGR

$Bn’s

Source: ABARE, ABS, RBA, APRA, Jun 2002. Neil Clark & Assoc., Bank Annual Reports. (f) = forecast

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“Outlook”

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Outlook – AWB is well positioned as Australia’s leading agribusiness

Agricultural outlook is improving - AWB forecast 22 to 24m tonnes of wheat for 2003-04- Outlook solid for finance, insurance, fertiliser and real estate

2002-03 Group NPAT forecast in the range of $40-45m

2003-04 Group NPAT forecast in the range of $100-110m- Pre goodwill amortisation, including all one-off costs

Ring fencing of National Pool- Targeted credit ratings achieved and protected

Integration of Landmark- Total EBIT enhancement opportunities, derived primarily from finance growth

opportunities, assessed at $5-$10m in 2003-04 increasing to $30-$40m by 2005-06

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Appendix 1 : AWB’s Business

• Australia's major grain marketer and one of the world's largest wheat managers and marketers – over 60 years experience in marketing Australian wheat

• AWB markets wheat and other grains to more than 40 countries and is the world’s second largest wheat exporter with 16% global market share (based on 2001-02). The AWB National Pool is a significant contributor to the Australian economy, accounting for around 3% of the total value of Australia’s exports. AWB employs more than 550 people, with a network of 43 offices in Australia and around the world

• AWB is chosen by most Australian wheat and grain growers to market and financetheir grain

• AWB operates and manages the AWB National Pool on behalf of AWB (International) Ltd via the Single Desk system Market Cap: A$1,242.3 million (A$3.95 30/9/03)

Shares on issue: 315 million

Shareholder’s equity: A$815.9 million (as at 31 Mar 2003)

ASX listing: 22 August 2001

Index inclusion: S&P / ASX 100 (75% weighted)

Average daily volume: 370,000 shares (over the last 12 months)

Introduction

A Class Shares (35,000 outstanding)

B Class Shares (315m outstanding)

• Can only be owned by current wheat growers

• One share per wheat grower with weighted voting dependant on tonnes delivered (currently 35,000 A class shareholders)

• Non-transferable

• Not entitled to receive any dividends

• Ability to control AWB through electing 7 of 12 Directors (a majority of the board)

• Shares listed on the ASX

• Can be owned by any investor, subject to 10% ownership limit (currently 60,448 B Class shareholders)

• Entitled to receive dividends

• Entitled to elect up to 4 of 12 Directors over time

• 15% of issued capital owned by Institutions

Dual Class Share Ownership Structure

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Supply Chain & Other Investments

Supply Chain & Other Investments

Chartering AWB Grainflow Offshore Investments

Pool Management Services

Pool Management Services

Base Fee Out-Performance Incentive

Finance & Risk Management

Products

Finance & Risk Management

Products

AWB National Pool Payment Options AWB Basis Pool AWB riskassist

Grain Acquisition & Trading

Grain Acquisition & Trading

Grain Contract Acquisition Products Domestic Trading Non-Wheat Trading Global Operations - Geneva

Grain TechnologyGrain Technology Agrifood Technology AWB Seeds Research & Development

AWB Business Streams

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Ring fence of National Pool operations

• Ring fence structure to be effective from 1 October 2003

• Ratings expected post 1 October 2003

- AWB Harvest Finance

S&P: A1+ (s/t) AA- (l/t) stable

Moodys: P-1

- AWB Commercial Subsidiaries

S&P: BBB stable outlook

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Capital requirements going forward

• Level of capital required to support future growth plans

• No major capital expenditure for 2003-04

• Expected maintenance capital expenditure of approximately $20-$30m per annum (to 2005-06)

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Appendix 2 : Landmark’s Business

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Overview of Landmark

Landmark is Australia’s leading rural distribution network with national coverage and significant growth opportunities

• Largest merchandise and fertiliser distribution business in Australia

• Well diversified earnings base across regions, agricultural commodities and business activities

• High growth finance business that can be further leveraged by AWB

• Strong insurance agency business

• Extensive branch network throughout regional Australia with 430 outlets and over 100,000 customers

• Lower risk agency model relative to peers

• Experienced management team which has presided over previous successful acquisitions and significant earnings growth

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Mercha-ndise

$1.1b Sales

Mercha-ndise

$1.1b Sales

430 outlets430 outlets

1,890 employees1,890 employees

Livestock

1.9mCattle

11mSheep

Livestock

1.9mCattle

11mSheep

Wool

500kbales

Wool

500kbales

Real Estate

$730msales

Real Estate

$730msales

Fertiliser

1.2mtonnes

Fertiliser

1.2mtonnes

Finance

$815mbook

Finance

$815mbook

Insurance

$119m premium

Insurance

$119m premium

100,000 customers100,000 customers

Landmark: a snapshot

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Wool Livestock

• Landmark handles approximately 25% of the National Wool Clip (600,000 bales)

• Provides traditional broking / auction selling services as well as a comprehensive range of Risk Management products

• 50% interest in Australian Wool Handlers (with BWK), 40% interest in Arcadia

• Not involved in any downstream processing

• Handles approximately 20% of livestock trading in Australia

• Provides saleyard auction services and private treaty services for livestock producers

• Supplies processors, supermarket chains, lot feeders and live export markets

• Landmark do not own feedlots or abattoirs

Overview of Landmark by business unit

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Real Estate Insurance

• Markets large rural properties, residential real estate (regional towns) and clearing sales in country areas throughout Australia

• Real estate sales of in excess of A$700 million in 2003

• Landmark offers a range of insurance cover options for rural businesses and households

• Landmark acts as an agent for WFI and CGU

• The current arrangements with WFI and CGU will remain in place

Overview of Landmark by business unit

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• Supplies a broad range of agricultural inputs, including agricultural chemicals and veterinary products, to all major agricultural sectors

• Distributed via 230 company owned branches, 50 franchises and 150 members (ie non-Landmark merchandise stores)

• Provides agronomic advice for cropping, pasture and cotton enterprises

Merchandise

Network characteristics

Branch Core regional town, full service

Franchise Smaller regional town with committed local operator

Member Wholesale supply, may be branded or non-branded

Overview of Landmark by business unit

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Fertiliser Finance

• Acts as an agent for CSBP (owned by Wesfarmers) and others in WA; IncitecPivot and Hi-Fert on the east coast

• Landmark provides a range of financial products for rural producers including seasonal and term loans, term deposits, cheque accounts and credit cards

• Acts as an agent for Rabobank and receives a proportion of the net interest on each loan and a share of a ‘bonus pool’ (precise earning arrangements are yet to be determined)

• Landmark is responsible for loan approvals, however there is one Rabobank credit manager in the Landmark credit team

• Landmark still ‘owns’ the client

• 50 Rural Finance Managers located throughout Australia

Overview of Landmark by business unit

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• Other Sales and Gross Profit are derived from the following businesses

Other

Big N Anhydrous ammonia distribution75% of other income

JRT2Cartage of sugar cane, fertiliser and

merchandise

OtherInterest margin on Deposit Notes and debtors,

rent recovery and car sales

25% of other income

Overview of Landmark by business unit

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www.awb.com.auFor more information contact:

Delphine Cassidy

Head of Investor Relations

T: +61 3 9209 2404

F: +61 3 9670 1723

E: dcassidy@awb.com.au