2005 Half Year Results Wednesday, 25 May 2005

1. 2005 Half Year Results Wednesday, 25 May 2005

2. Content • Half year review and highlights (Andrew Lindberg) • Financial performance (Paul Ingleby) • IFRS update (Paul Ingleby) • Business operations (Andrew Lindberg) • Integration update (Andrew Lindberg) • Outlook and strategy (Andrew Lindberg)

3. Half year review and highlights Andrew Lindberg Managing Director, AWB Limited

4. Solid result in a tough environment Financial Result - half year ended 31st March 2005 * * Outside Equity Interests

5. Half year highlights • Net profit after tax of $91.3 million, up 69%, underlying net profit after tax of $66.6 million, down 3% • Earnings per share of 26.6 cents, with an interim dividend of 16 cents per share (fully franked) • Profit on sale of investment in Futuris of $55.2m ($41.8m after tax) • Landmark integration on track to deliver year two synergy targets • Pool performed well given tough global environment • Expansion of international trading with a new office in New Delhi, India • Harvest loan book peaked at $1.1 billion • Landmark lending book was nearly $1.3 billion • Increased merchandise and fertiliser sales by 6% nationally • Establishment of strategic partnership in fertiliser with Elders & WMC Resources

6. “demonstrating strength through diversification” Despite a 17% decrease in wheat production over 2003/04 harvest, earnings have dropped by only 3% *NPAT pre significant items

7. Strong yield for shareholders Shareholder Summary: “AWB continues to be a strong yield stock”

8. Financial Performance Paul Ingleby Chief Financial Officer, AWB Limited

9. Statement of financial performance

10. Statement of financial position

11. Cashflow *property, plant & equipment

12. Capital expenditure

13. IFRS update

14. A-IFRS impact • First A-IFRS compliant reporting will be 31 March 2006 • Project is managed in accordance with a documented governance and monitoring structure • Project is on schedule and AWB expects to fully comply • Major impacts: • Goodwill impairment test • Expense share based payments • No hedge accounting for derivatives • Grain trading inventory at fair value

15. A-IFRS Analysis - High Impact

16. A-IFRS Analysis - Low Impact • Addresses areas where widespread external publicity has created uncertainty, but assessment has confirmed as low impact at AWB • Embedded derivatives (AASB 139) • Comprehensive high level review by contract type • Detailed review of high risk contracts • No embedded derivatives identified • Income Tax (AASB 112) • Dependency on first consolidated tax return balance sheet • Comprehensive review indicates no material impact • FCTR (AASB 121, AASB 1) • No transfer of cumulative translation differences to opening retained earnings as AWB has no intent to divest • Landmark acquisition accounting (AASB 3, AASB 1) • No value in reopening acquisition • Pool Accounting • Not consolidated – remains a special purpose reporting entity with ASIC exemption from annual and interim financial reporting • UIG Action Alert 05-02, Commodity Pooling Arrangements, “The UIG received a presentation from representatives of AWB … given the now consistent presentation of financial reports of pool managers in relation to commodity pools, members agreed that the UIG need not address these issues further at this time.”

17. A-IFRS financial impact

18. Business Operations Andrew Lindberg Managing Director, AWB Limited

19. Pool Management Services • 2004 Wheat Marketing Review findings showed that the Single Desk is being well managed by AWB • Following recommendations from the review, the performance based remuneration model has been refined • As out-performance is reported, Pool Management Services expects improved earnings in the second half of 2005 • Strong sales performance “challenging environment… strong performance”

20. Trading • Trading operates on a “fund of funds” basis • There has been a return to more normal freight market conditions • AWB Geneva continues to be a strong revenue platform for the group • New office opened in New Delhi, India • Australia grain trading reduced its EBIT contribution on lower volumes and margins (mainly due to seasonal conditions) • Livestock trading (previously managed in the Landmark business) contributed strong revenue growth to the Group “presence in both domestic and international grain markets”

21. Supply Chain & Other Investments • Receivals through the Grain Centres were down 0.5 million tonnes to 1.3 million tonnes due to adverse seasonal conditions coupled increased competitive pressures • Melbourne Port Terminal and overseas investments (Five Star Flour Mills in Egypt and AWB Zennoh in Japan) maintained their EBIT contributions at a similar level to the prior year • Efficiencies within the supply chain positively impacts the Pool Services management fee “adverse seasonal conditions impact results”

22. Finance & Risk Management • Contribution by Financial Services decreased while Risk Management increased • Market share and margins were maintained in a highly competitive environment, although wheat production and export prices declined • AWB’s risk management businesses (AWB Riskassist, Basis Pool and the over-the-counter options desk in AWB’s Portland, USA office) provided increased contribution to the result mainly due to increased activity in Portland, USA office “highly competitive environment… but still the market leader”

23. Rural Services (Landmark) • Higher earnings across all activities (other than wool) plus the recognition of profit on the sale of assets was partially offset by higher overhead costs (predominantly incentive payments, training and motor vehicle costs) • Merchandise and fertiliser sales increased by 6% • Livestock profitability remained comparable due to higher cattle prices offset by reduced volumes and lower sheep prices offset by increased volumes • Real Estate sales increased through increased prices driven by increased demand for prime rural properties • Finance profitability increased 4% due to growth in the loan book • Insurance profitability increased 3% due to 1% growth in gross written premium “lowest cost full service distribution network”

24. Corporate • Combination of head office costs offset by miscellaneous revenue items • Corporate overheads decreased mainly due to non-recurring integration and restructuring costs associated with the Landmark acquisition incurred in the prior year • Dividends from Futuris of $4 million

25. EBIT summary of business operations

26. Integration update

27. On track to deliver year two synergy targets Integrated Business Model “generating new revenue growth opportunities” Integration 1. Customer Management Integrated customer management developed across the distribution network combining systems and processes to better understand and serve our customers Back office integration is complete, our focus has shifted to implementation of the IBM 2. Product Development New products and bundles being developed incorporating products from across Landmark and AWB range to better meet our customers needs 3. Channel Strategy Channel management to optimise AWB-Landmark’s combined distribution network

28. Outlook and strategy

29. Outlook – 2004/05 Earnings: • AWB’s 2005 earnings forecast is expected to be comparable to 2004 earnings, assuming improved seasonal conditions on the east coast to compliment the excellent start in the west Dividend: • Increase in interim dividend to 16 cents per share, fully franked • Final dividend expected to be no less than 11 cents per share, fully franked • Full year dividend to increase from 25 cents per share in 2004, to at least 27 cents per share in 2005

30. Outlook - global wheat market • Production is slightly down and stocks remain tight • New crop conditions around the world are good • FSU rebound after poor 2003/04 crop has contributed to increasing major exporter carry out stocks • Markets have retraced from highs of 367 cents per bushel set in mid March to around 310 cents per bushel • 21-23 million tonnes is expected from 2005/06 domestic harvest subject to improved seasonal conditions on the east coast • Current conditions in WA are excellent • Solid performance in international grain trading business

31. Outlook – other commodities Livestock: • Beef prices expected to tail off with increased export competition from North and South America • Lamb prices set to remain positive with increased demand from export markets Real Estate: • Rural real estate market remains promising Financial Services: • Strong medium term growth is forecast for the financial services business Merchandise & Fertiliser: • Merchandise & Fertiliser sales dependent on rain on the east coast

32. The platform for growth • Focused on delivering shareholder value: • Solid financial growth • Stable dividend payments • Efficient capital management • Improved quality of earnings

33. QUESTIONS

34. www.awb.com.au For more information contact: Delphine Cassidy Head of Investor Relations Ph: +61 3 9209 2404 Email: dcassidy@awb.com.au