Slide 1: Full Year Results 2002
Full Year Results 2002 pia ae? sil Ss
Slide 2: Business - What we do
Braingorp Business - What we do YX MS ‘canary Solan GrainCorp | ee Storage Grain Marketing|] Merchandising Transport Primary & handling Logistics Processing Receive |] Buy & Sell Buy & Sell Milling Store | |Manage Pools Seed Wheat, maize Move || Logistics Chemicals Logistics soya & rice Export | Exp
Slide 3: Business - Key Assets
Graincarp Business - Key Assets ©) *A significant advantage that GrainCorp has is the low cost of entry when we purchased the assets from the Government ‘We are continuing the process of rationalising the number of receival sites to gain greater efficiencies *Capital investments are made only where
Slide 4: 2002 Result Highlights
2002 Result Highlights ®© ‘Beowsny Soltiond «This has been a strong result with profits up nearly 11% on last year. «This increase in profit was achieved with slightly lower grain receivals than the previous year. “We have maintained our strong dividend payments in line with published policy. ¢We sa
Slide 5: EBITDA, PAT & Receivals
EBITDA, PAT & Receivals tna 4 wn no & 2 0.0 L eo 80 80S = 60 60 = 40 3 = 40 20 2006 o 4 - 97/98 98/99 99/00 o0/o1 1/02 EBITDA COPAT —@— Reveals «This graph illustrates the increase in profit after tax despite the slightly lower receival figure. «lt also demonstrates the consistent growth in our busi
Slide 6: Revenue
Revenue @ Other O Marketing m@ Storage & Handling MilionS 95/96 96/87 97/98 B8/SS 99/00 O0/01 61/02 Revenue has increased significantly for both the Storage and Handling business and for Marketing Marketing this year accounts for over 60% of revenue. The profit for marketing activities increased by
Slide 7: Share Information and Structure
Graincorp Share Information (Ss ‘Teowing Sotllons hare Information and Structure Grain Growers Public Association Shareholders | 8.3m Ordinary Shares SCIEUS AIEWIPIO Wig LE 1 Foundation Share i ~ a SIS Foundation Share confers certain key rights + Allows Grain Growers Association to appoint six dire
Slide 8: Earnings Per Share
Graincorp Earnings Per Share Y) _Gentspershare 9506 = 9687 = 7B = eBis9 = 990 noir ots02 «Earnings were 121.2 cents per share - Up nearly 11% on the previous year. “We have consistently achieved strong returns. *Long term maintainable EPS performance reflects the underlying strength of the business
Slide 9: Dividends
Grancarp Dividends ©) ‘Eevwrlng Sala “We have maintained our strong dividend payment rate *Full year dividend payment based on 65% PAT dividend payment policy. This policy means that means shareholders will track the performance of the company. “This year’s yield is 8.4% (This figure to be revised o
Slide 10: Cashflow Performance
Cashflow Performance @ Debt Servicing OTax @ Dividend Payments @ Capital Expenditure & Capital Structure Utilisation of Cash Graincorp © MS ‘Growing Soltione «This company is characterised by the ability to generate strong cashflow. «We have invested nearly $300 million in capital to ensure our oper
Slide 11: Cashflow - Historical Chart
Cashflow - Historical Chart $ Millions = 1998 1999 2000 2001 2002 @ Dividends Paid B Borrowing Costs @ Capital Expend ture DO Cash from Operations «Strong cashflow since merger in 2000 «Two years of strong receivals in both Victoria and New South Wales has seen the business generate in excess of $20
Slide 12: Assets, Debt & Equity
Graincorp Assets, Debt & Equity © Aicgwang Sotatina $ Millions 1998 1999 2000 2661 2002 @ Votal Assets DShareholders Equity Total Debt «Consistent growth in total assets and shareholder equity “At year end we have a relatively conservative debt to equity ratio of 65% This does not include off balanc
Slide 13: Gross Return on Assets and Equity
Grancorp f Teauleg Sa Gross Return on Assets and Equity 1998 19999 2060 2061 2002 —@— Return on Shareho ders’ Funds somo GPOSS Return on Assets ame Long term average targets Despite the volatility inherent to agribusinesses GrainCorp has delivered: «Gross return on assets consistently over 20% “A co
Slide 14: Financial Scorecard 2001/02
Financial Scorecard 2001/02 “We have extracted the savings we planned from the synergies associated with the merger with Vicgrain “We have increased our Profit After Tax even though our receivals were slightly down on the previous year. “We have scaled back Capital Expenditure and intend to maintain
Slide 15: Outlook - Industry
Outlook - Industry «Grains industry continues to grow and productivity increases «The above table shows a progressive increase in the planted area and production of grain in NSW and Victoria « Australia has competitive advantages which strengthen the industry such as a reputation for quality and eff
Slide 16: Outlook - Wheat Crop
Outlook - Wheat Crop Production figures New South Wales and Victoria Drought Year EE Following Year ees Year Average _Kilo-tonnes «Historical production figures show that every bad year is generally followed by at least an average year and in some cases a very good year. *Our strategic planning assu
Slide 17: Outlook - GrainCorp Growth
Outlook - GrainCorp Growth $ Millions “sel 1998 1999 2000 2001 2002 @ Receivals O Exports ‘While there is clearly more competition in the industry with increased vertical integration and competitors entering non-traditional areas, the industry itself is growing. «Growth in productivity, capital inve
Slide 18: Forecast - The Environment
Forecast - The Environment «The most recent forecast issued was at the end of October immediately prior to commencement of harvest for 2 million tonnes of grain «Flexible costs are being managed - reduction in casual/seasonal workforce - tightening of operating costs generally *Capital expenditure h
Slide 19: Forecast - Performance
Grantor Forecast - Performance i) *Receivals for the coming year will be severely affected by the drought «The performance depends on a number of ‘unknowns’: -the actual size of the harvest currently underway - the size of the summer crop - the possible demand for imports that will provide a partial
Slide 20: Strategic Direction
GratnCorp. * . . Teg Strategic Direction gy) Right-size Core Business Differentiate Core Business Supply Chain Competition Growth Opportunities RIGHTSIZE CORE BUSINESS *Silo capacity positioning «Reduce and reorganise overhead cost “Target capital DIFFERENTIATE CORE BUSINESS «Develop point of differ
Slide 21: Strategic Scorecard 2001/02
Grainborp Strategic Scorecard 2001/02 w equag Stations «GrainCorp has delivered on strategic initiatives we have committed to. “We have reduced the number of receival centres and have focussed our capital expenditure investment on the 20% of sites that receive the bulk of grain each harvest. “We hav
Slide 22: www.graincorp.com.au
www.graincorp.com.au