Slide 1: GrainCorp Limited and AWB Limited Proposed Merger
For personal use only GrainCorp Limited and AWB Limited Proposed Merger: Creatingg shareholder value and buildingg a stronger, g , more resilient company 6 August g 2010
Slide 2: Strategic Rationale
For personal use only S Strategic i Rationale R i l Stronger St competitive titi position iti ini domestic d ti and d international i t ti l markets k t Creates the largest g diversified rural services business in Australia Industry‐leading positions in grain storage and handling, rural mercha
Slide 3: Complementary businesses across the value chain
For personal use only C Complementary l b i businesses across the h value l chain h i Storage Ports Rail freight Grains Grains Malting Chartering Oilseeds Oilseeds Flour Milling Storage, Strategic Distribution Production Handling & Origination Marketing Processing Sourcing & Advice Ports Fertiliser
Slide 4: Landmark – Australia's market leading rural services business
For personal use only Landmark – Australia’s market leadingg rural services business MERCHANDISE FERTILISER LIVESTOCK WOOL REAL INSURANCE FINANCIAL ESTATE SERVICES PARTNERSHIP 1.8M Cattle $1.1B Turnover 10M Sheep $700M Turnover 400,000 Bales 1.0M Tonnes Clearing Sales $350M $1.03B $163M $1B Revenue
Slide 5: Merged Co well positioned in Australian grains
For personal use only M Merged d Co C wellll positioned ii d in i Australian A li grains i Landmark’s ‘touch‐points’ complementary to GrainCorp’s upcountry customers Grain storage, handling, logistics and port elevators Grain accumulation, domestic and international grain marketing AWB is Au
Slide 6: Well established malting and milling businesses
For personal use only W ll established Well bli h d malting l i and d milling illi b businesses i Malting – GrainCorp Malt Milling – Allied Mills • Supply leading international brewers • 10 flour milling / mixing facilities and scotch whisky distillers • Australia s largest human Australia’s • Stron
Slide 7: Timing of the Announcement
For personal use only Ti i off the Timing h Announcement A Gavilon discussions – exclusivity ended 30 June 2010 New N GrainCorp G i C CEO – commenced d on 30 JJuly l 2010 Integration of the GrainCorp Malt companies GNC shareholder consultation 7
Slide 8: Process Timing
For personal use only Process Process Timing • Merger Implementation Deed Executed • ACCC submission b i i E l A Early Aug‐10 10 • ACCC public comment phase Aug/Sep‐10 • AWB scheme of arrangement documents issued Mid Sep‐10 • ACCC and regulatory approvals Oct‐10 • AWB shareholder vote Oct‐10 • Merge
Slide 9: Public Matters
For personal use only P bli Matters Public M Grain a buying buy g and a d exporting e po g competition co pe o • A stronger competitor and a more competitive marketplace Storage and Handling • Open access across th O the network t k • + 10% capacity and anticipated + 5% market share Ports • AC
Slide 10: Risks
For personal use only Ri k Risks Iraq litigation in the US Ex AWB employee civil cases • GNC not liable for any fines as erroneously reported Comfort through due diligence and familiarity with the risks 10
Slide 11: Synergies
For personal use only S Synergies i Merger synergy benefits in excess of $40m Expected to be fully captured in second year Cost synergies across a range of areas: • Consolidation of executive, listing costs and related overhead • Duplication of functions, especially Head Office • Savings i in
Slide 12: Dividends
For personal use only Di id d Dividends Intention for GNC and AWB shareholders to receive a fully franked final dividend and a fully franked special dividend following merger completion Future dividend profile • GNC dividend p policyy to pay p y between 40% and 60% of cumulative net profits p af
Slide 13: Disclaimer
For personal use only Di l i Disclaimer • This presentation contains certain forward‐looking statements with respect to the financial condition, results off operations and business off GrainCorp and AWB (“the (“ parties”) ”) and certain plans and objectives off the parties. All such forward‐looking