Australian Agricultural Company Limited · ASX:AAC

Australian Agricultural — H1 2009 Earnings Presentation

19 slides from Australian Agricultural's earnings presentation, Aug 11, 2009

1. Slide 1: Results Presentation for Half Year Ended 30 June 2009

   For personal use only Australian Agricultural Company Limited Results Presentation for Half Year Ended 30 June 2009 1 Stephen Lonie – Chairman 11 August 2009

2. Slide 2: First Half 2009 – Key Financials

   First Half 2009 – Key Financials For personal use only ƒ Net loss of $30m for first half 2009 ƒ Property and related herd sales generated $181m cash ƒ NTA per share of $2.55 (within previous guidance) ƒ Positive net cash flow of $135m enabled debt repayments of $109m (net) reducing gearing from 36%

3. Slide 3: First Half 2009 – Key Events

   First Half 2009 – Key Events For personal use only ƒ Sustained flooding, particularly in Gulf region, followed on from 2008 drought ƒ GFC continued to impact consumer demand and credit markets ƒ Exit of Elders Limited from the share register ƒ Introduction of IFFCO/Felda JV as 19.99% shareholder ƒ S

4. Slide 4: Seasonal Extremes

   Seasonal Extremes For personal use only Brunette Downs on the Barkly June 2008, before rain January 2009, wet season rainfall to date 462mm 4

5. Slide 5: Seasonal Extremes – Purchase/Transfer of breeders back to the Barkly Region

   Seasonal Extremes For personal use only Purchase/Transfer of breeders back to the Barkly Region Exhibit 1: AAco’s Land Portfolio Approximately 40k breeding Darwin cattle returned to the Barkly Delamere Mont eiinni Cairns Ant hony Lagoon Gregor y Downs Camfield Lawn Eva Downs Hill Gregor y Far m Br u

6. Slide 6: Sustained flooding in the Gulf Region in early 2009

   Seasonal Extremes For personal use only Sustained flooding in the Gulf Region in early 2009 6

7. Slide 7: 2009 – Good rainfall received YTD although severe flooding in the Gulf

   Seasonal Extremes For personal use only 2009 – Good rainfall received YTD although severe flooding in the Gulf June YTD Actual v Long Term Average Rainfall to June (background) Barkly Gulf VRG Central South 1,400 1,200 Below long term 1,000 average 800 mm Average or 600 better 400 200 - Carrum Delam

8. Slide 8: Flooding did break the drought though, providing substantial feed reserves

   Seasonal Extremes For personal use only Flooding did break the drought though, providing substantial feed reserves… Headingly – Jan 2009 8

9. Slide 9: GFC Impacts

   GFC Impacts For personal use only Volatility in USD affects cattle prices and sales for Branded beef product AUD performance against USD & JPY 1.10 120 2007 2008 to 30/6/2009 110 1.00 100 90 0.90 80 AUD:USD AUD:JPY 0.80 70 60 0.70 50 40 0.60 30 0.50 20 AUD / USD AUD / JPY 9

10. Slide 10: Cattle Prices – 2008/2009

    Cattle Prices – 2008/2009 For personal use only Prices continue to recover post June 2009 Average Monthly EYCI - Last 10 months 350 Prices continue to improve 340 up to and post balance date 330 Cents/kg DW 320 310 June Balance 300 Date 290 280 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09

11. Slide 11: Cattle Movements – Last Half Years

    Cattle Movements – Last 3 Half Years For personal use only Cattle Numbers (‘000 Head) 6 mths 6 mths 6 mths Jun-09 Dec-08 Jun-08 Opening herd 590 609 588 Opening calf accrual - 100 - 38 - 21 Opening branded cattle 490 571 567 Sales - 105 - 131 - 121 Mortality / rations - 22 - 10 - 10 Purchases 32 16

12. Slide 12: Seasonality – Calving vs Financial Year Ends

    Seasonality – Calving vs Financial Year Ends For personal use only 12

13. Slide 13: Summary Balance Sheet

    Summary Balance Sheet For personal use only 30-Jun 2009 2008 $'m $'m Cash 46.3 20.0 Livestock 379.3 421.8 Property 703.2 847.3 Other assets 46.7 53.2 Total assets 1,175.5 1,342.3 Debt - 318.9 - 428.7 Bank facilities DTL - 127.4 - 145.4 Other liabilities - 49.3 - 63.0 ƒ8m due October 2009 Total liabi

14. Slide 14: Property Valuations

    Property Valuations For personal use only ƒ Carrying value of properties held at December 2008 levels ƒ AAco’s own property sales in 2009 to Paraway at fair value validate carrying value of property portfolio ƒ Activity in 2009 dominated by large corporate transactions including CPC (Terra Firma) an

15. Slide 15: Positive Cash Flow (adjusted)

    Positive Cash Flow (adjusted) For personal use only First half 2009 First half 2008 $’m $’m Operating cash flow (36.1) 5.9 Proceeds from sale of livestock herd 32.1 - Retention monies due at completion of 8.0 - muster of sold livestock herd 1 Add back: Franking deficit tax 5.4 - Adjusted cash flow 9

16. Slide 16: Capital Management

    Capital Management For personal use only ƒ No intent to raise capital in near term ƒ Strategy to refinance existing bank facilities with new 3 year term facility well advanced ƒ Board confident of refinancing based on discussions to date and given level of available security 16

17. Slide 17: Strategic Review

    Strategic Review For personal use only ƒ Focus on 3 distinct supply chains ƒ 100 day Grainfed Beef (‘1824’ brand) domestic and export ƒ Wagyu Grainfed Beef (various brands) mainly to US and Korea ƒ Live export of cattle, mainly to Indonesia ƒ Increased asset productivity and cash returns ƒ Grow the

18. Slide 18: Outlook for H2 2009 and 2010

    Outlook for H2 2009 and 2010 For personal use only ƒ Better business conditions ƒ Improved financial performance expected with: ƒ Increased cattle prices (impacts sales and MTM) ƒ Improved asset utilisation following restocking ƒ Full period effect of cost reductions ƒForecasting a profit in H2 18

19. Slide 19: For personal use only

    For personal use only 19

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