1 / 21

AWB LIMITED’S INITIAL PUBLIC OFFER

AWB LIMITED’S INITIAL PUBLIC OFFER. Monday 9 July 2001. Trevor Flugge Chairman, AWB. ¨. HISTORY OF AWB. 60 years experience in marketing Australian wheat 1989 – Domestic market deregulated and Wheat Industry Fund established 1998 – AWB corporatised

lei
Download Presentation

AWB LIMITED’S INITIAL PUBLIC OFFER

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AWB LIMITED’S INITIAL PUBLIC OFFER Monday 9 July 2001

  2. Trevor FluggeChairman, AWB ¨

  3. HISTORY OF AWB • 60 years experience in marketing Australian wheat • 1989 – Domestic market deregulated and Wheat Industry Fund established • 1998 – AWB corporatised • 1999 – AWB privatised as grower owned and controlled corporation

  4. AUSTRALIAN WHEAT INDUSTRY Australia exports 80% of its total average wheat production Wheat production is about 20 - 21 million tonnes per year WHEAT GROWING AREAS

  5. AWB OVERVIEW AWB activities account for: • 3% of Australia’s total exports • 12% of Australia’s total farm exports • Average 17 million tonnes of bulk wheat exported per year • Markets to 50 countries • Total revenues of approx $5.5 billion (of which $3.5 - $4 billion related National Pool sales)

  6. GLOBAL WHEAT TRADE 1999/2000 total wheat trade -100 million tonnes EU16% Canada19% Other8% Argentina9% USA30% Australia18%

  7. AWB STRENGTHS Expertise in: • Pool Management Services • Financial & Risk Management for Wheat Growers • Domestic Marketing of Wheat and other Grains • Investments in Distribution Infrastructure

  8. CORPORATE STRUCTURE Dual class • 35,000 A class shareholders • 1 share each with weighted voting • 64,500 B class shareholders • 242 million shares issued

  9. BENEFITS OF LISTING • Fair value for existing shareholders • Increased liquidity • New equity to fund future development • Increased commercial disciplines

  10. AWB LIMITED’S INITIAL PUBLIC OFFER

  11. Andrew Lindberg Chief Executive and Managing Director, AWB

  12. AWB’S BUSINESS STREAMS Pool Management Services 2001F EBIT$9.3m Finance and Risk Management Products 2001F PBT$80.2m Grain Acquisition and Trading 2001F EBIT$70.3m Grain Technology 2001F EBIT($3.0m) Supply Chain and Other Investments 2001F EBIT$15.4m

  13. AWB’S FINANCIAL RESULTS • Full Year 1999/2000 - $63.3 million • Net Assets at 31 March 2001 of $648 million • Half Year 2000/2001 - $52.4 million (increase of 25%) • Half Year Dividend - 14 cents (Fully Franked)

  14. AWB INVESTMENT HIGHLIGHTS • Significant expertise and scale in global wheat marketing • One of the largest integrated global wheat managers • Large existing customer base • Manager of Single Desk • Potential to broaden range of products, services and customers in Australia & overseas • Strong balance sheet and dividend paying capacity

  15. AWB LIMITED’S INITIAL PUBLIC OFFER

  16. Paul InglebyChief Financial Officer, AWB

  17. AWB FINANCIAL FORECASTS • Full Year 2000/2001 Forecast - $79.4 million (increase of 25%) • Full Year Dividend = 22 cents (Fully Franked) • Pro-forma Net Assets at March 2001 of $743 million

  18. THE OFFER Public and Institutional Offers • Offered to clients of the Lead Manager and Retail Brokers and institutional investors • Underwritten by UBS Warburg $80 million underwritten Existing Shareholder Offer • Open to existing A and B class shareholders • Top-up, cash-out and New A class shareholder components Up to $20 million non-underwritten Employee Offer • Open to all existing employees of AWB • Guaranteed minimum allocation of 1,000 shares

  19. OFFER HIGHLIGHTS • Application Price = $3.15 • Share Issue = up to 31.8 million • Amount raised = up to $100 million • Market Capitalisation Post Offer = $860 million • Dividend Yield (Fully Franked) = 7.0% • Price to Earnings Multiple = 9.7 times

  20. OFFER TIMETABLE Offer Opens 23 July Offer Closes 15 August ASX Listing 22 August

  21. AWB LIMITED’S INITIAL PUBLIC OFFER Monday 9 July 2001

More Related