presentation to ridley agribusiness investor forum an introduction to awb andrew lindberg 15...
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Presentation to Ridley Agribusiness Investor Forum
An Introduction to AWB
Andrew Lindberg15 November 2000
Covering today….
• Australian Wheat Industry• Structure & Business• Financial Results• Challenges• Growth and Diversified Profit Streams• Key Industry Considerations• Solid Foundation for Future Success• Board & Management
• 40,000 wheat growing properties
• Geographically fragmented
• 21 million tonnes of wheat production• 20 per cent of wheat grown is
consumed domestically – about 4.5m tonnes
• Balance of wheat is exported
Australian Wheat Industry
Australia’s Wheat Market Share
One of the largest wheat exporters in the world
Wheat Export Volume (1)
Exporter (m Tonnes)
Canadian Wheat Board 19.4
AWB 17.1
Cargill (2) 13.7
ADM (2) 4.5
Conagra (2) 1.9
1/ 99-00, expected export volume2/ U.S. exports onlySource: USDA
AWB is ….
AWB’s Structure
• Unlisted public company (1 July 1999)
• Dual class– 37,000 A class shareholders
• 1 share each with weighted voting
– 67,000 B class shareholders• 241m shares issued
• 425 employees, 30 offices in Australia and oversees
A W B ( In te rn a tion a l) L im ited(N a tion a l E xpo r t P oo l)
T rad ing G ro up A W B F in a nce L im ited
A W B L im ited
S ha reh o lde rsA C la ss - g ro w e r co n tro l
B c la ss - eq u ity inv e sto rs
AWB’s Structure
Global Manager of Australian Grain...
VISIONGrains managed by AWB are the world grains of choice
MISSIONAWB is the leading global manager of Australian grain
OBJECTIVEMaximise value for growers, customers, and shareholders
Financial Results• ½ year to 31 March 2000
– Operating Revenue: $1b– NPAT: $41.8m– EPS: 17 cents
• Full year to 30 September 2000– Operating Revenue: $1.7-$1.8b(est)– Related Revenue: $5.5b (est)– NPAT: $62-64m (est)– EPS: 26 cents (est)– DPS: 22 cents (declared)– Shareholders equity: $625-630m
AWB Faces Three Challenges...
Business Strategy
StakeholderSatisfaction
OrganisationalCapability
WINNING
AWB is Building Strong Positions Across Each Link of the Value Chain
AWB
Seed Acquisition Storage Handling Shipping Trading Marketing RiskMgmt
Milling
The Wheat Industry Supply Chain Suffers Significant Inefficiencies
GrowersBHCs
Customer
Information flows
Product flows
AWB transport
orders
AWB orders, &BHC inventory &
movement reports
AWB forecasts &
price signals
TransportCompanies
1. Most customer orders are by telephone
2. Most transport and BHC orders are by telephone, fax or manual e-mail
4. No access to actual grower production or delivery data
5. Most information flows are NOT automated
Customer orders
3. Most inventory and movement data are controlled by service providers• Limited access by AWB• Low data integrity due to manual systems
Growth and Diversified Profit Streams
Asset & Risk Management
Strategic Investments
Trading Performance
Australian Export Wheat Harvest Value
0%
20%
40%
60%
80%
100%
2000 2003
• Information Advantage
• System Management
• Regulation
Key Industry Considerations
• Strengthening our organisational capability
• Strong and sustainable position within the industry
• Strong profit growth in the core business
• Reducing earnings volatility
Solid Foundation for Future Success
• Trevor Flugge - Chairman
• Rob Barry – Deputy Chairman
• Paul Ingleby – CFO
• Tim Goodacre – Group GM Trading
• Peter Geary – GM Export Pools
Board & Management
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