Slide 1: Results announcement for year ending 30 September 2006
Results announcement for year ending 30 September 2006 30 November 2006 GrainCorp ©
Slide 2: FY06 Results
FY06 Results * Financial performance * Operating performance by business unit The road to 2009 * key strategies and targets 12 month outlook * Drought impact and management om | * Comparison to previous drought (FY03)
Slide 3: FY06 results & highlights
FY06 results & highlights 6 | FY05 Net profit aftertax | $39.5m | $13.5m ™ 193% (before RPS distribution) above mn Grain receivals extam | 1.6m: | g3mt 16% Exported grain 5.3mt | 47mt 13% Tonnes traded — S.imtonnes | 2am 11% Allied Mills _ $7.6m $4.3m 77% JV contribution : Full year dividends * Ordi
Slide 4: Other highlights for FY06
Other highlights for FY06 } Strengthening the network program completed with focus on 77 primary sites and 210 major & custom sites Project Shine annual cost savings of $10m achieved; $6m recognised in FY06 Wheat Australia (GNC,ABB&CBH) exported 350,000 tonnes to Iraq Allied Mills commenced construc
Slide 5: Financial Summary
Financial Summar § million FY 2005* Variance % Revenue 702.9 +19% EBITDA 92.2 +31% Interest — RPS - Other 24.2 -2% PBT# 18.7 +192% NPAT# 13.5 +193% EPS ROE * AIFRS accounting standards app! # before RPS distrioution of $7.8m 13.9 cents 3.3% + 458% +197% ©)
Slide 6: EBITDA & NPAT
EBITDA & NPAT — 5 YR | $ Millions ; | ' IN * a (Mn i UL (en 2005 2006 me EBITDA fam NPAT EBITDA 5yr avg NPAT 5yr avg 2 ©)
Slide 7: EBITDA performance by segment
EBITDA performance by segment | $ million PY Comments Storage & Handling : . 16% Increased ex-farm receivals & cost reductions Grain Marketing s . Strong trading performance as well as growth in | pools revenue Allied Mills / . Internal restructuring & cost reduction programs completed, and an impro
Slide 8: EBITDA growth
EBITDA growth Project . Shine Marketing Cost 1 reduction aa 5 on Net volume + direct ___| costs (S&H) : : Grantor a \ ; Not to scale ©)
Slide 9: Balance sheet
$ million 2006 =| 2005 Variance % Current assets (8666 | 219.7 +67 Non current assets . SS 610.5 -1% Total Assets 9681 | 830.2 +17% Current liabilities / : . 171.1 +103% Non current liabilities | 24245 262.4 -19% Total liabilities 56 | 433.5 429% Net assets | 396.7 +3% ee SS Grantor z * Increase rel
Slide 10: Gearing and debt to equity
FY06 FY05 Term debt /equity 46% 91% Total debt /equity 75% 116% Graincorp z Financial Year [zg Net LT Debt Zia Grain inventory eum Gearing (LT Net Debt Only)
Slide 11: Return on invested capital
Return on invested capita 2002 2003 2004 2005 Mm ROIC WACC (2006) 2006 / ©
Slide 12: Cash flow
Cash flow — 5 2002 2003 2004 2005 Dividends paid @ Net Capex 0 Surplus 2006 Cumulative cash flow $293m — dividend payments — capital expenditure (R&M / discretionary) —retire debi —acquisitions Graincorp z
Slide 13: Operating performance - Storage & Handling
Operating performance Storage & Handling. EBITDA $124.3m (up 33%) Change in EBITDA from FY05 to FY06 Consolidated storage network to 77 primary sites + 180 major & custom sites New $6m hardwood woodchip facility opened at Portland Achieved #8 20% EBITDA per tonne from FY05 improved domestic customer
Slide 14: Operating performance - Marketing
Operating performance - Marketing : EBITDA $22.7m (up 14%) New pools launched in ° WA&SA Strong EBITDA performance — Growth of pools — 11% increase in tonnes traded to 3.1 mt — Continued barley sales to Saudi Arabia Expanded domestic customer base As part of the Wheat Australia consortium, successfu
Slide 15: Operating Performance - Allied Mills
Operating Performance - Allied Mills | Completed a major 3 year Allied Mills contribution to GNC restructuring program, which reduced operating costs by $20.1m Achieved 7.6% return on investment in FYO6 improved market environment Commenced construction of a B intrest © Profit new low-cost manufactu
Slide 16: Operating performance - support business units
Operating performance — support business units AG Finance Deposit book grew substantially to $24.2m The second prospectus was released in March 2006 Successful product development and launch of harvest loans for 2006/07 harvest Range of new inventory finance and insurance products in development for
Slide 17: Targets
Targets (assuming 9.6mt receival & 3mt carry in, base EBITDA of $114m) Return on equity 210% Profit 2 $40m Domestic grain market share 250% :
Slide 18: Support
Support FY06 $120.9m businesses Network Plus additional productivity Domestic EBITDA from market fe © deregulation eae | «GMOs $114.0m +$26m new EBITDA Gaintorp Base / Not to scale
Slide 19: Increase market share
Increase market share _ Focus: New product development & expand service offering Activities: - Extend service and product range for growers, domestic grain buyers and exporters to include: - Freight, handling, finance and risk management in addition to extensive storage & handling network Process im
Slide 20: Increase network productivity
Increase network oroductivit Focus: Targeted capex & cost reduction Activities: - Rail capabilities - on demand operations - increasing in and outloading - Storage receival/outioad capability - Capex at 77 primary sites (which account for 80% of total grain receivals oe ~ Business systems developmen
Slide 21: Increase port earnings
Increase port earnings _ Focus: Asset utilisation Activities: -~ Co-location - e.g. ethanol, woodchip ~ Increase volume of existing commodities ~ Secure new bulk, dry commodities for export or import - Export facilities - New container facilities Gaintorp i
Slide 22: Other opportunities to expand trading
Other opportunities to — | expand trading | Focus: Geographic expansion (domestic & international) FY06 international trading . Vietnam 3% Activities: - International & domestic expansion - Non grain trading eg wool - Expand pools - Wheat and barley exports* Grantor z * Partly subject to changes in
Slide 23: Outlook 2006/2007
Outlook 2006/2007 2006/07 will be a challenging year due to the drought. Receivals forecast (winter & summer) 2 - 4m tonnes Financial forecast (NPAT) $20-30m loss Remain cash flow positive Business improvement opportunities — Strong summer crop plantings expected — Implementing key strategies for 20
Slide 24: Drought management
Drought management FY03 to FYO7 * Same cost base over a larger network « Similar tonnes shigher carry in (Smt) GNC $6m slower receivails im DrO\ ved « Revenues up (tariffs increased with CPI) earnings on - - Allied Mills contribution up aiter tax * Non-grain revenue up
Slide 25: Questions
Questions Gralnlorp z