1. Queensland Rural Press Club April 20 2007

2. 2 My initial observations of AWB Good company with a sound diversification strategy (Landmark / rural financial services/ overseas offices in India, Geneva and Brazil) however it faces many challenges: –Lack of employee engagement –Reputation fallout from Oil-for-Food Inquiry –High cost base

3. 3 One thing I didn’t count on was the severity and prolonged drought – affected both National Pool and Landmark. However recent indications from the Bureau of Meteorology have indicated that El Nino is dissipating It is hopeful we will go back to more normal rainfall this year –great relief to AWB and Australia’s hard working farmers. Drought

4. 4 Three stage action plan To address the above issues and position the company for the future: Stage One – Manage our business performance Stage Two – Consolidate and reshape our business Stage Three – Our sustainable growth agenda

5. 5 Stage One We were focused on managing the Oil-for-Food Inquiry and the impact of the drought Focused on operational performance – getting the basics right I started a cultural change program And we took measures to improve governance and rebuild our reputation with shareholders, growers and customers.

6. 6 Stage Two In the first half of this year – we will consolidate and reshape our business to accommodate changes arising from the Government’s review of wheat marketing. Stage two will focus on: –Efficiency –People and Organisation –Business strategy –Communication and reputation

7. 7 Stage Three Later this year and beyond- we will focus on a sustainable growth agenda. This is based on: –Mitigating seasonal and cyclical volatility –Proactive capital allocation –Growing the business

8. 8 Management action to date Some of the major projects we have started to improve business performance: Management renewal Change in leadership Project Simplicity Reducing coast base and business complexity and improving organisational effectiveness Project Focus Improving the performance of the rural services network focusing on customer management, business unit structure and reducing cost base Values Program Engaged over 600 employees to commit to a set of values The values have been agreed throughout the organisation and the roll out is in progress.

9. 9 Communication & Reputation 1.When I arrived the Oil-for-Food Inquiry was coming to its conclusion –Prolonged negative coverage –Priority was to quarantine the past and focus on the immediate business priorities 2. The bad news, and focus on the past, alienated many key stakeholders –Needed to rebuild relationships

10. 10 Communication & Reputation con’t 3. As a result, adopted a new strategy (which remains in progress) – Quarantine legacy issues from the business – Appoint new leadership team to change culture – Focus on pressing business issues 4.Early signs of improvement –New leadership team stabilising the business –Constitutive relationships with key stakeholders being built – we are listening and acting –Meeting with a broader range of stakeholders – especially growers and customers – who are lynchpin of our future business success

11. 11 Communication and reputation con’t As a result, I have met with: Employees –Over 50% of employees domestically and internationally Investors –Most institutional domestic and offshore investors Customers –Key International customers in Asia and Middle East

12. 12 Communication and reputation con’t Growers –Most grower bodies –Many Australian wheat farmers as I start to travel around regional Australia – listening / taking on board their concerns Government –Working on temporary and future arrangements The outcome of these initiatives will take some time to bear fruit. In the short term, we will still be affected by seasonal and cyclical conditions.

13. 13 Next Steps Business planning for future wheat marketing arrangements –Our immediate challenge is to manage through the Government review of wheat marketing. –We are hoping for clarity as soon as possible. –Until we have certainty about future arrangements, it would not to prudent to hedge 2007/08 wheat crop. –We simply do not want to expose growers or shareholders to any unmanageable risks. –With this mind we released an unhedged Estimate Pool Return for the 2007/08 season for benchmark APW wheat pay grade

14. 14 Next Steps con’t Improving business performance –Ongoing focus on business efficiencies –Continued work on capital returns Consolidate operating model –Accountability –Culture and values

15. 15 Single Desk Our position remains that the current wheat marketing arrangements are a legislated mandate and that AWB has fulfilled the ultimate objective of the legislative mandate – to maximise net returns to wheat growers. AWB’s IPSOS grower survey shows that a majority of wheat growers continue to support those arrangements. The key findings of the IPSOS survey are: –Over 80% of wheat growers, both small and large, support retention of the Single Desk wheat export marketing arrangements; –Two out of three growers still feel positive about AWB management of those arrangements; and –Wheat growers satisfaction with the services provided by AWB grain marketers has actually increased from 64% to 72%.

16. 16 Single Desk con’t Over 3,700 growers attended the wheat marketing meetings recently and the Committee has received over 1,000 submissions. Over 75% of growers at the Committee meetings support the single desk. There is a small minority who want status quo at one end and at the other there is a small minority which want total deregulation. The vast majority of growers support a single desk system for selling wheat however they do want some change. AWB told committee that further changes to Single Desk arrangements for marketing Australian wheat overseas are warranted - but they should be gradual and linked to the global trade reform timetable, and structural adjustment within the domestic grains industry, to ensure wheat growers are globally competitive and financially viable.

17. 17 Single Desk con’t To further this process AWB recommends a de- merger of AWB Limited and AWB International as a sensible evolution of the current arrangements. De-merger to split AWB International as a wholly grower-owned company from AWB Limited, with market contestability in the provision of services to the Single Desk determined by AWB International. –Functions –Contestable service provision Final proposal / model up to independent Board of AWBI and growers to determine

18. 18 Single Desk con’t / Conclusion We believe the de-merger will provide a smooth transition to the scheduled National Competition policy review in 2010. Thank you Any questions