Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — Q3 FY2003 Earnings Presentation
16 slides from Australian Agricultural's earnings presentation, May 6, 2003
Slide 1: ee SSR SRS ES Vesa an oo aU UH LL LLL LLL LLL a
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Slide 2: Strongly rising average cattle prices in February 2003
e Strongly rising average cattle prices in February 2003 subsequent to widespread rains e YTD FYO3 cattle revenue higher than YTD FY02: — Higher volume cattle sold — Higher mark to market cattle value appreciation — Positive impact from Aronui feedlot acquisition e Increased confidence in full year
Slide 3: Operational Performance
‘ ) Operational Performance ye LD a ¢ Continuing to manage seasonal conditions, dry conditions easing after “average” wet season e Herd numbers seasonally lower at 378,000 however breeding herd numbers increased by 3% since 31 Dec 02 ¢ Cattle prices have increased across FY03 as anticipated e Aronui
Slide 4: AACo weighted average indicator price and sales volume
(001 = L0, Uer ‘20d ODWy) 2 2S Q Q ° foo) _ ror) t \ oO N ~ 1 t code €0-9e4 eo-uer 20928 ZO-AON Z0-0 Z0-des zo-Bny zo-inr zo-unr Zo-Aew Zoudy Solid price rises since Dec 02 ZOE Z0-994 zo-uer 40-080 LO-AON 40220 Lo-des Lo-Bny Lo-nr Lo-unr Lo-Aew Lowdy Loe 10-984 Lo-uer 7000 + 6000 + 5000 + 4000 + 300
Slide 5: Queensland Cattle Market Index
Queensland Cattle Market Index «Strong price -— rises in Jub Aug- Sep- Oct Nov Dec- Jan Feb- Mar Apr- Source: NLRS February 2003 post rains. «Expectation of slight easing of prices to June 2003, but fundamentals underlying good prices remain strong
Slide 6: Herd Market Value - Change from December 2002
= Herd Market Value — = Change’ from oT | December 2002 a“ As at 31 March 2003 % Price Change Since Herd Number 31 Dec 02 Trading Cattle 181,174 15% Breeding Cattle 197,244 5%' Total 378,418 1 — Breeding females (175,000) were revalued upward 5% at 31 March 2003. Stud Cattle and Herd Bulls (22,000)
Slide 7: Australian Rainfall Deciles
Rainfall Dacile Ranges: Highest on Record ye, Very Much 7 Above Average | Above Average 4 BRISBANE 23 Ly} Very Much Below Average Lowest on Record Australian Rainfall Deciles 1 February to 30 April 2003 Distribution Based on Gridded Data Product of the National Climate Centre | hlted/wavw.bom.gov.au
Slide 8: Polkinghornes and 1824 beef
POLKINGHORNES oc “Testers The Jaffle Pie Coa. 1824 — Now selling 1824 beef in 20 restaurants in the Brisbane area Roll out 1824 distribution to Melbourne on the back of Chefs Partner/Bidvest distribution alliance Polkinghornes — Third retail store open at Victoria Gardens, Melbourne. Larger floor sp
Slide 9: Third quarter results for months ending March 2003
For 9 months ending 31 March 2003 millions ~ % change 3rd Qtr 02 SGARA Cattle Revenue ($) 73.3 A 15% EBIT ($) 21.1 V 8% Beef sold (kgs) 24.3 A 27%
Slide 10: Valuation review and interim dividend
e Valuation review process of AACo properties underway e Fully franked interim dividend of 2c per share declared e Dividend reinvestment plan discount of 2% introduced with interim dividend
Slide 11: Beef export market outlook
Japanese beef demand continuing to improve, but wholesale prices will be volatile due to short-term increased import tariff US beef prices to remain strong, offsetting recent AUD/USD increases and imports forecast to increase as a result of lower US cow slaughter Top-end Asian beef consumption (Wagy
Slide 12: Operating cash flows and FY03 NPAT expectation
By 2 a e Operating cash flows impacted by additional drought-related costs — supplementary feeding, grain and cattle expenses e Expectation of FY03 NPAT in the region of 10% down on 2002 result of $20.6 million
Slide 13: {fons
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Slide 14: US Cow and Japan Ox export prices
US Cow Acikg cwt 300 275 250 JN 225 / 175 nw Nf \ pV 7 WWW 150 02 02 O2 O02 O02 O2 02 03 03 «(03 T , ; r , T T T ; , Jun Jub Aug- Sep- Oct Now Dec- Jan- Feb- Mar- Apr- 03 Achkg ewt 350 325 300 275 250 225 200 Japan Ox (ws /\ A [ nf Vwv fr dun Jul Aug- Sep- Oct Nov Dec- Jan- Feb- Mar- Apr- 02 02 02 0
Slide 15: Queensland Cattle Market Index explanation
The Queensland Cattle Market Index (QCMI) is a useful benchmark indicator of cattle prices received by AACo for its trading cattle. The National Livestock Reporting Service (www.nlrs.com.au) produces the QCMI, a daily price index, which comprises a wide selection of slaughter cattle from six represe
Slide 16: EEE
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Australian Agricultural Company — Q3 FY2003 Earnings Presentation on 6ix