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Brendan Stewart. Chairman. Order of meetings. Meeting of A class shareholders to amend Articles of the AWB Limited Constitution Annual General Meeting of AWB Limited Meeting of A class shareholders (NSW/ACT region) to elect a director of AWB (International) Limited. Andrew Lindberg.
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Brendan Stewart Chairman
Order of meetings • Meeting of A class shareholders to amend Articles of the AWB Limited Constitution • Annual General Meeting of AWB Limited • Meeting of A class shareholders (NSW/ACT region) to elect a director of AWB (International) Limited
Andrew Lindberg Managing Director
Financial performance was significantly impacted by severe drought, across all business streams • Drought impacted wheat crop of 9.7 million tonnes in 2002/03 compared with 24.9 million tonnes in 2001/02 • Export volumes in the Pool fell by 77% to 4.3 million tonnes • Net profit after tax of $43.9m, down 59% • Earnings per share of 15.9 cents, down 59% • Fully franked dividend of 25 cents per share paid during 2003 • Cost control measures implemented successfully which resulted in a 12% reduction in total overheads (excluding depreciation)
AWB has consistently outperformed the S&P / ASX 200 since listing $A
The acquisition of Landmark dramatically expands AWB’s foot print across rural Australia • 430 outlets, 1950 staff and approx. 100,000 customers • Businesses include wool, livestock, merchandise, finance, real estate, insurance and fertiliser • 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)
Our focus is on the successful integration of Landmark • Team dedicated to the integration of Landmark • Targeted EBIT enhancement opportunities of $5-$10 million in 2003/04, and $30-$40 million by 2005/06 • On track to achieve year one targets and cost savings • Commenced training of Landmark Rural Financial Managers • AWB staff already selling a full suite of financial products • Consolidation of network and re-branding has commenced • Exploring opportunities to provide unique product offerings to farmers through “one-stop shop” model
Largest ever National Pool finalised reporting a record Gross Pool Value of $5.3 billion • Excellent result despite: - Volatile wheat market - War in Iraq • Strategic decision to extend pool (twice) resulted in Pool participants receiving an additional $14.60 per tonne • AWB is also on track to achieve significant Out-Performance for the 2002/03 National Pool
Ring fencing has achieved a higher short term credit rating for AWB • Ring fencing has separated the activities of the National Pool from the commercial activities of the AWB group • Ratings 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
Improvements to the supply chain with a joint venture between AWB & WA CBH • Co-operative joint venture “Grain Direct” signed in WA • Objective is to: • reduce supply chain costs for the National Pool participants; and • produce commercial investment returns for AWB • Anticipated net savings of $3.30 per tonne, per annum by 2008/09 harvest
Global trading operation, Geneva, enabled continued wheat supply to key customers during stock shortage • 1.5 million tonnes traded in its first full year of operation • Utilised successfully to manage customer demand during the drought, through other origin grain • Relationships with overseas customers retained
International marketing program CHINA Sale of 1 million tonnes of wheat to China - first sale since 1996 NEW MARKETS Focus on developing new markets, such as Sudan and Kuwait IRAQ Will continue to supply Iraq – anticipating strong competition from the US • Independent review performed – strategic plan developed • Grower participation in the future direction of AWB (International) Limited and its management of the single desk
Price trends for wheat, livestock & wool • Estimated Pool Returns for the 2004/05 harvest of $190 - $200 per tonne for APW • Prices impacted by appreciating AUD • Hedging program is well underway for 2003/04 and 2004/05 • Outlook for sheep and lamb prices is positive • Cattle industry remains buoyant • Wool market impacted by uncertain economic conditions in major markets
AWB is well positioned 2003-04 NPAT forecast is $110-$120 million (pre goodwill amortisation, including one off costs) • National wheat production forecast to be 25 million tonnes • High Pool receivals enables a greater amount of tonnage available for harvest finance products • In excess of 1.8 million tonnes through grain centres • Growth in chartering with approximately half total Pool tonnage to be sold with chartering component • On track to achieve targets through the integration of Landmark
Hamish Gidley-Baird Returning Officer
1st Meeting Special meeting of A class shareholders to amend Articles of the AWB Limited Constitution • Amendment of Articles considered are entrenched provisions • Requires a majority of at least 75% of votes being cast by A class shareholders in order for these amendment to be passed
1st Meeting 2.1 A class share redemption 2.2 Maintain “Grower” status 2.3 Retiring directors of AWB (International) Limited seeking re-election
1st Meeting Proxy position for special resolutions 2.1, 2.2 and 2.3 for A class shareholders only – as at 5pm (Melbourne time) 9th March 2004:
2nd Meeting Annual General Meeting of AWB Limited • Financial Report, Directors’ Reports & Auditor’s Report • Election of directors • Ordinary resolution • Special resolutions
2nd Meeting Election of director of AWB Limited - WA
2nd Meeting Election of director of AWB Limited - WA Laurie Marshall Winston Crane Hendy Cowen Steve Chamarette
2nd Meeting Proxy position for election of director of AWB Limited – WA as at 5pm (Melbourne time) 9th March 2004:
2nd Meeting Election of Director of AWB Limited – B class
2nd Meeting Election of Director of AWB Limited – B class Robert Barry Frank O’Connor Brett Cowell
2nd Meeting Ordinary resolution: Increase in non-executive directors’ remuneration
2nd Meeting Special resolutions:
2nd Meeting Proxy position for election of director of AWB Limited – B class - as at 5pm (Melbourne time) 9th March 2004:
2nd Meeting Proxy position for ordinary resolution to increase non-executive directors’ remuneration - as at 5pm (Melbourne time) 9th March 2004:
2nd Meeting Proxy position for four special resolutions for A & B class shareholders – as at 5pm (Melbourne time) 9th March 2004: