Management Presentation 27 th September 2002

1. Management Presentation 27th September 2002

2. Corporate Strategy Andrew Lindberg Managing Director 27th September 2002

3. Our financial objectives are clear • Target: • 15% ROE • Consistent trend EPS growth • Stable dividend • Improve quality of earnings • Efficient capital management

4. 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

5. In order to achieve our objectives, AWB has clearly defined strategies Maximise value for growers, customers & shareholders

6. 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

7. 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

8. 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

9. 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

10. 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

11. QUESTIONSCorporate Strategy

12. Capital Management, Risk Management & Financial Services Paul Ingleby Chief Financial Officer 27th September 2002

13. Efficient capital management

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. QUESTIONSCapital Management, Risk Management & Financial Services

22. Grower Interface Tim Goodacre Group General Manager Corporate 27th September 2002

23. 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

24. 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

25. 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

26. QUESTIONSGrower Interface

27. National Pool and the Pool Services Management Model Sarah Scales General Manager National Pool 27th September 2002

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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)

34. 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

35. QUESTIONSNational Pool and the Pool Services Management Model

36. Grain Acquisition & Trading Peter Geary Group General Manager Trading 27th September 2002

37. 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

38. 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

39. 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

40. 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

41. 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

42. QUESTIONSGrain Acquisition & Trading

43. Supply Chain Investments & Chartering Jill Gillingham Chief Operating Officer 27th September 2002

44. Agenda • Objectives for supply chain • Outline of supply chain strategy • Examples of returns • Chartering

45. 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

46. 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

47. Expenditure on AWB grain centres* * 17 Grain centres have been announced

48. Grain Centres – Dimboola Grain Centre • Investment of $11.3m in 1999 Note: WDV = written down value

49. Grain Centres – Standard new site • Investment of $7.3m for each site

50. 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.