Slide 1: GrainCorp Half Year Results 2004
GrainCorp Half Year Results 2004 GrainCorp Growing Solutions 27 May 2004
Slide 2: GrainCorp - Half Year Highlights
GrainCorp - Half Year Highlights = $12.5 million profit after tax, up 27.5% = Dividend of 27 cents per share declared including special dividend = 11.1 million tonnes of receivals, up by 516.7% » 2.1 million tonnes of exports, up by 133.3% * EBITDA of $54.1 million up from $42.2 million, up 28.2% «
Slide 3: GrainCorp - Half Year Highlights
GrainCorp — Half Year Highlights = Grain carry over forecast 2.6 million tonnes * Grain Marketing records Half Year earnings of $7 million * RPS Interim Dividend of $3.245 per share paid on 31 March 2004 * Capital Expenditure at $15.2 million, on track for Full Year forecast $30 million
Slide 4: Half Year vs Full Year NPAT
Half Year vs Full Year NPAT 70 + 50 + $ millions 30 + 10 r a - F -10 + 4999 2000 2001 2002 2004 Forecast @ Half Year Profit f@ Full Year Profit
Slide 5: Revenue
Revenue millions # 300 - 1999 2000 2001 2002 2003 HY04 m@ Other O Marketing @ Storage & Handling
Slide 6: EBITDA, PAT & Receivals
$ millions EBITDA, PAT & Receivals 40 20 00 80 60 40 20 (20) -- 1999 2000 C= EBITDA 2001 2002 20 31-Mar-04 Ms PAT =O Receivals 2004 (forecast) $24-$26m Tonnes (millions)
Slide 7: Earnings Per Share
Earnings Per Share Oo = 100 = wo & 50 Q 2 5s oO oO -50 6 year FY
Slide 8: Debt/Equity Ratio
Debt/Equity Ratio 180% 160% 140% 120% + 100% 80% 60% 40% 20% 0% 169% Target range 40-60% . 95% GrainCorp Average 81% 60% (Full Year) 66% 63% 36% 23% | 1999 2000 2001 2002 2003 31-Mar-04 = 2004 Forecast @ Debt/Equity Ratio
Slide 9: Assets, Debt and Equity
$ Millions Assets, Debt and Equity _@TotalAssets m Shareholders Equity oO Total Debt 1999 2000 2001 2002 2003 31-Mar- 2004 04 Forecast Average Total Assets growth to 31 March 2004: 36%
Slide 10: Rewarding our shareholders — above average
Rewarding our shareholders — above average 10.0% BASX 200 (Cash Yield) 8.0% BGNC Dv. Yield (Fully Franked) 6.0% 4.0% 0.0% 1999 2000 2001 2002 27-May-04 GNC dividend yield does not include special dividend Total shareholder return since listing in 1998: 63.9% Average dividend yield 1998 — 27 May 2004
Slide 11: Capital Management
Capital Management Special Dividend — GrainCorp will issue a special half- year dividend of 10 cents payable alongside the ordinary interim dividend of 17 cents per share on 1 July 2004 Dividend Re-investment Plan (DRP) — currently approved by shareholders and may be re-activated at the discretion o
Slide 12: Investing in GrainCorp — performance over time
4500 4000 + 3500 + 3000 2500 + 2000 Investing in GrainCorp — performance over time — GNC Share Price (rhs) 12 mt harvest 11. 1mt harves, —— ASX 2060 {Ihs)} | Purchase of Mitling Australia Hh \ with Cargill | { 14.0 13.0 12.0 41.0 10.0 9.0 8.0 7.0 6.0
Slide 13: GrainCorp — Our business today
GrainCorp — Our business today GrainCorp Storage og: Primary Farm Inputs & handling Grain Marketing Logistics Receive | ff Buys sell | ‘Road. Milling/Mixing foe . Manage Pools Rail Wheat, maize | Finance : Export Export Logistics soya & rice / "Expansion of core business in Storage and Handling «" G
Slide 14: GrainCorp Storage & Handling
GrainCorp Stora Additional 1.8 million .tonnes through Ports since Grainco 11.1 million tonnes in receivals at 31 March 2004 Forecast receivals at 11.6 million tonnes ange of products $15.2 million in Capital rough ports: Expenditure at 31 March | 2004 woodchips Forecast Capital . Expenditure for St
Slide 15: GrainCorp Marketing
GrainCorp Marketing * Recorded $7 million contribution for Half Year 2004 * Building international expertise and portfolio of clients # Introduction of an open permit system for export and domestic sorghum, canola and domestic malt barley — charge of $5 per tonne permit fee to authorised buyers = Su
Slide 16: Allied Mills
Allied Mills Wheat Specialt : Site Milling Mixing ining Tennyson v Toowoomba v v Dalby v Summer Hill v ‘ockhampton Tamworth Vv v Kingsgrove v Brisbane Albury v k Tennyson Ballarat v v Kensington v v worth Bridgewater v : ° ydney ~ : Kingsgrove and Mile End Summer Hill Nth Fremantle = y v B A State o
Slide 17: Allied Mills - Environment
Allied Mills - Environment Impact of drought on grain prices and production margins «» Purchase of Goodman Fielder by Burns Philp has brought changes in the structure of that business " Ongoing focus on customer relationships - Burns Philp — long term supply agreement and positive relationship - Com
Slide 18: Domestic Market Shares — Human Consumption Flour
Domestic Market Shares — Human Consumption Flour at May 2004 90 5 80 5 ha 54.4% 60 J 4/o 50 4 x 40 5 30 4 20 5 a 0 ; 1 1 1 1 1 1 Biscuit Specialty Premixes Bakers Specialty Durum Allied flour flour Flour grain flour Mills Total Market Share
Slide 19: Products & Sales Channels
Products & Sales Channels Sales Volumes by Sales Channel F03 Distributors & Franchises 8% Export 3% Mill Run Commercial Customers 18% Customers 24% Baking Australia 27% Bakery Route Trade 15% In Store Bakeries 7% GFCF 6% Burns Philp Sales EA
Slide 20: Allied Mills - Performance
Allied Mills - Performance Half-year contribution of $1 million including interest earned Forecast $3-4 million contribution for Full Year 2004 Restructuring costs will impact on performance until changes are completed — earnings growth expected to follow restructuring period Ownership of primary pr
Slide 21: Restructuring - Human Resources
Restructuring - Human Resources 844.4 786.4 Co LI C_] 667.7 DC] L_| Co | 558 119 reduction 110 reduction | _ SS IM Goodman Fo3 End Headcount Fielder Actual FO04 reforms 27-May-04
Slide 22: Operating Cost Reductions (from base year 02)
Operating Cost Reductions (from base year 02) Site Costs have led to FTE reductions * Focus on.support services levels + Warehouse reductions from Cost to Serve Project + Least Delivered Cost plan in QLD / Victoria + Return of Toll milling * Site structure changes * Closure of Rocky plant at end FY0
Slide 23: Allied Mills' Long Term Strategy
Allied Mills’ Long Term Strategy Business heat Procurement R&D/ A Storage & Manufacturing Outbound Technical Fea sg Logistics . Inbound Logistics Service + AGA structure to «Focused milis (bulk «In line with + Targeted «+ Customer product — reduce costs ibagged & premix) manufacturing customers solu
Slide 24: Crop Outlook 2004
Crop Outlook 2004 « Planted area — the area north of Dubbo which represents 40% of the Eastern grain growing regions is now largely planted. « Recent rains mean further plantings will commence in NSW and parts of Victoria " Crop forecast — up to 27.2 million tonne national crop, including doubling i
Slide 25: Queensland — contribution so far
Queensland — contribution so far Forecast $10-12 million in integration benefits for first year - $7 million in synergies already achieved through: Staff numbers reduced by 143 Successful integration of systems Operational and marketing efficiencies 1.8 million tonnes of grain and non-grain receival
Slide 26: GrainCorp Outlook — 2003/2004
GrainCorp Outlook — 2003/2004 Consolidate business operations Total winter grain receivals 10.8 million tonnes (12 million tonnes average) Low carry-in of 1.4 million tonnes (prior year 4.6 million tonnes) will impact 2003/04 performance Capital expenditure projected for 2004 (around $30 million) is
Slide 27: GrainCorp Outlook — 2003/2004
GrainCorp Outlook — 2003/2004 » Unknown variables include - Export tonnages - Total summer crop harvest receivals - Grain trading margins and throughput - Demand for farm inputs « Profit forecast $24 — 26 million.
Slide 28: Questions
Questions