Slide 1: Half Year Results 2003
Half Year Results 2003 May 2003 Braincorp.
Slide 2: GrainCorp - What We Do
GrainCorp - What We Do Storage Transport Primary & handling Logistics Processing Buy & Sell “Seed *Storage and handling remains the core business but the benefits of diversification are already becoming obvious *Grain Trading continues to increase its share of revenue - and is performing well *Our s
Slide 3: Business - Key Assets
Business - Key Assets « 18 million tonnes of permanent and bunker storage capacity with a replacement value exceeding $2 billion « Nearly $300 million invested in modernising facilities since 1996 « 4 seaboard terminals in NSW and Victoria ~ Newcastle, Port Kembla, Geelong and Portland plus access t
Slide 4: Half Year 2003 Result Highlights
Half Year 2003 Result Highlights e {.8 million tonnes of receivals, down 84% « 0.9 million tonnes of exports, down 76% « Revenue $304.7 million, down 20% « $42.2 million EBITDA, down 46% « $9.8 million after tax profit, down 74% « Earnings per share of 24 cents, dawn 74% « No dividend declared Cost
Slide 5: EBITDA, PAT & Receivals
EBITDA, PAT & Receivals 14.6 42.6 10.6 HY03 8.0 6.0 4.0 2.0 Forecast full year toss $ rillions Tonnes (Millions) 1999 2600 2001 2062 Mmm EBITDA CI PAT —@—Receivals Grantor, GrainCorp Half Year Results, May 2003 *Despite the effects of the drought, this graph demonstrates the consistent growth in our
Slide 6: Revenue
Revenue mw Other 700 O Marketing 600 ™@ Storage & Handling 500 $ millions 1999 2060 2061 2062 HY03 *Marketing this half year accounts for over 62% of revenue at $190 million. *Marketing is a high turnover, low margin activity designed primarily to complement the storage and handling business - Grain
Slide 7: Earnings Per Share
Earnings Per Share cents per share 4999 2000 2004 2002 2003 GrainCorp Half Year Results, May 2003 *Earnings were 24 cents per share. “We have consistently achieved strong returns. *Long term maintainable EPS performance reflects the underlying strength of the business
Slide 8: Cash-flow Performance
Cash-flow Performance SMillion Net cash-flow from operating activities 76 Sale of AWB shares 32 108 Investment in Allied Mills 71 Loans to associates 52 Capital expenditure (4Y02 $31 million) 7 Financing 7 Final Dividend 01/02 18 Income tax paid 35 160 Increase in net borrowing $2 Eroniby Botations
Slide 9: Assets, Debt & Equity
Assets, Debt & Equity 700.0 600.0 500.0 400.0 300.0 200.0 100.0 a.0 $ millions 1833 2000 2004 2002 HYGS wTotaAssets oO SharehotdersEquity es Tota Debt GrainCorp Half Year Results, May 2003 *Consistent growth in total assets and shareholder equity *Increased assets reflect capital investment in the b
Slide 10: Gross Return on Assets & Equity
Gross Return on Assets & Equity Ea GROA Half Year EH GROA Full Year @ GROE Half Year @ GCROE Fuil Year percent 1999 2000 2001 2002 2003 Brovdng Balagoas Despite the volatility inherent to agribusinesses GrainCorp has delivered: *Gross return on assets consistently over 20% °A consistent Return on Eq
Slide 11: Allied Mills
Allied Mills « Strong and effective working relationship with our joint venture partner Cargill Australia « Successful integration with broader operations « Quality assets - exceeded due diligence projections « Contribution of Allied Mitls has been EPS positive after inclusion of one off integration
Slide 12: Allied Mills
Allied Mills « Chatlenging first six months due to drought « Focus on customer relationships Burns Philp - long term supply agreement Commercial customers retained « implementing strategies to optimise product mixes and supply chain efficiencies tig feehleres
Slide 13: Forecast - The Environment
Forecast - The Environment « otal grain receivals forecast 1.9 million tonnes « Costs are being managed « Capital expenditure projected to be $10 million for 2003, down from $40 million in 2002 * Unknown variables include Final planting for 2003/04 harvest - carrently 70% with variable sowing condit
Slide 14: Forecast - Performance
Forecast - Performance « Forecast loss after tax of $19-206 million for 12 months to 30 September 2003 « GrainCorp will remain operating cash-flow positive « Export out-loading forecast |.0 - 1.2 million tonnes « Domestic out-loading forecast 4.4 - 4.6 million tonnes « Carry over forecast 0.6 millio
Slide 15: Grainco - Merger Discussions
Grainco - Merger Discussions * GrainCorp and Grainco announced the commencement of merger discussion on 5 February 2003 « Opportunity to merge makes strategic and commercial sense for both companies - builds on existing partnerships « Due diligence process complete « ACCC have expressed no objection
Slide 16: Strategic Direction
Strategic Direction « Core business in storage & related activities « Shift in focus from agri-business to agri-food business « Emphasis on improving value for both shareholders & clients « Competitive advantage by creating value in linkages between these related businesses Merchandising Grain Farm
Slide 17: Questions
Brancorp, Questions : Abvochiy Sa