Slide 1: Building on our strength: Half year results
Slide 2: Financial Performance HY 2006
FINANCIAL PERFORMANCE HY 2006 At 31 March 2006, 10.4 million tonnes of grain was received ex-farm, slightly below the 10.7 million tonnes forecast EBITDA of $65.2 million up from $46.3 million in the same period last year $19.4 million profit after tax (after deducting RPS dividend treated as debt i
Slide 3: Competitive Environment
COMPETITIVE ENVIRONMENT East Coast Production & Export, Domestic @ €@ € @ € 8 (Production —— Domestic Strategic Challenges - Strengthen our Business Model - Increased focus on the domestic grain market - Utilise excess port capacity with non-grain exports - Increase earnings from non- storage and ha
Slide 4: Expansion in non current assets (mergers, acquisitions, capex)
Expansion in non current assets (mergers, acquisitions, capex) Maintain strong EBITDA and cash » Interest and depreciation to support these assets has impacted NPAT GNC Assets and EBITDA CJAssets ——EBITDA Assets $M EBITDA $M 1998 1999 2000 2001 2002 2003 2004 2005 2006F
Slide 5: AIFRS Adoption
AIFRS ADOPTION Effects of AIFRS implementation AIFRS issue Expected impact on annual PBT Comment Reset Preference Shares * Reciassified as debt « Dividends treated as interest « Expense establishment costs $0.0m $(7.8)m $(0.9)m $112m shown as current liability until 30/9/06 No impact on cash flows o
Slide 6: Capital Structure
CAPITAL STRUCTURE Dividend Policy — Policy is to payout a minimum of 70% of pre mark to market profits. It will be reviewed further in 2007 Gearing — Strategy to reduce gearing over time Reset Preference Shares — Board decision on future treatment of RPS to be made prior to the reset date of 30 Sept
Slide 7: Corporate Objective and Mission
CORPORATE OBJECTIVE AND MISSION « There has been a sustained change in our business environment «» The 2006 Strategic Plan puts in place: — Achievable targets to reward shareholders — Gearing levels to be lowered over time — Strategies to strengthen our business model to meet our changing business e
Slide 8: Strengthening the Receival Network
STRENGTHENING THE RECEIVAL NETWORK Challenges — Growers are increasingly delivering their grain into larger full- service silos — Flexible service to growers and buyers — Under-utilisation of smaller sites Response — Development of 77 permanently manned primary sites — Targeting capital and resource
Slide 9: Competitive Advantage from Rail
COMPETITIVE ADVANTAGE FROM RAIL Challenges — Maintaining rail security for network and branch lines in particular, and accessing competitive rail rates — Growing road-based domestic market — Current rail loading infrastructure limits efficiency Response — Work with Export Grain Logistics and rail co
Slide 10: The Domestic Market
THE DOMESTIC MARKET Challenges 12 East Coast Domestic mag Non Human 7 Human ——Domestic % - 100% + 90% “+ 80% + 70% + 60% + 50% | 40% | 30% | 20% + 10% 1999/00 2000/01 2001/0: 2002/03 2003/04 0% 2004/05 FY0g ‘arget Increase in road based domestic market Proportion of domestic consumption of grain pro
Slide 11: The Domestic Market cont.
THE DOMESTIC MARKET cont. Response 1. GrainCorp to be the ‘first choice’ for buyers and growers Using our network to provide a superior service Strengthen relationship with end-users to PULL grain into our silos Support relationship with growers to PUSH grain into our silos Develop new value added p
Slide 12: Port Diversification and Expansion
PORT DIVERSIFICATION AND EXPANSION Challenges — Leverage the Company’s extensive port assets — Decreasing grain exports due to increased domestic consumption — Excess port capacity Response — Port diversification — continue to leverage port land, assets and skills to handle other products Flexible a
Slide 13: Increased Earnings from Other Business Units
INCREASED EARNINGS FROM OTHER BUSINESS UNITS Marketing — Strengthen skills and resources — Wool trading AG Plus — Enhanced service model — Strengthen supplier base — Increase resources for sales, service and administration AG Haul — Improve competitive position in rail freight AG Finance _ Build dep
Slide 14: Optimising Business Processes
OPTIMISING BUSINESS PROCESSES Challenges — Improving business processes and systems — Increase site connectivity — Ensure consistent and effective management information systems Outcomes — Improved stock management — Reduced operating costs GrainGorp — Administration savings y
Slide 15: Engaging Our People
ENGAGING OUR PEOPLE Challenges — Staff engagement is a pre-requisite for the execution of all strategies Response — Modernising technology systems to streamline business processes and measure performance: Strategy Maps and implementation of Balanced Scorecard - leadership, purpose, goal alignment Ch
Slide 16: Wheat Export Marketing
WHEAT EXPORT MARKETING Challenges Existing regulation of grain marketing excludes GrainCorp from wheat exports Value for growers can be improved by reforming current arrangements Wheat Australia: shipment of bulk wheat to Iraq Response Position the Company to benefit the Company and growers from pot
Slide 17: Genetically Modified Crops
GENETICALLY MODIFIED CROPS The world market for GM Crops The major GM crops grown around the world are soybean, corn, cotton and canola Canada and the United States are the only countries growing GM canola Yields for GM canola are 10 percent higher than for non-GM varieties The labelling regime can
Slide 18: Full Year after tax profit forecast $26-30 million
Full Year after tax profit forecast $26-30 million (before RPS dividend) Full Year export forecast - 5.5 million tonnes of grain - 2.3 million tonnes other e.g. woodchips, minerals etc. Full Year carry over forecast 3.7 million tonnes of grain First winter crop receival forecast will be issued end J
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