AWB LIMITED’S INITIAL PUBLIC OFFER Monday 9 July 2001.
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Transcript of AWB LIMITED’S INITIAL PUBLIC OFFER Monday 9 July 2001.
AWB LIMITED’S INITIAL PUBLIC OFFER
Monday 9 July 2001
Trevor Flugge
Chairman, AWB
¨
HISTORY OF AWB
• 60 years experience in marketing Australian wheat
• 1989 – Domestic market deregulated and Wheat
Industry Fund established
• 1998 – AWB corporatised
• 1999 – AWB privatised as grower owned and
controlled corporation
AUSTRALIAN WHEAT INDUSTRY
Australia exports 80% of its total average wheat production
Wheat production is about 20 - 21 million tonnes per year
WHEAT GROWING AREAS
AWB OVERVIEW
AWB activities account for:
• 3% of Australia’s total exports
• 12% of Australia’s total farm exports
• Average 17 million tonnes of bulk wheat exported per
year
• Markets to 50 countries
• Total revenues of approx $5.5 billion (of which $3.5 -
$4 billion related National Pool sales)
GLOBAL WHEAT TRADE
1999/2000 total wheat trade -100 million tonnes
Canada19%Canada19%Other
8%Other8%
Argentina9%Argentina9%
Australia18%Australia18%
USA30%USA30%
EU16%EU16%
AWB STRENGTHS
Expertise in:
• Pool Management Services
• Financial & Risk Management for Wheat Growers
• Domestic Marketing of Wheat and other Grains
• Investments in Distribution Infrastructure
CORPORATE STRUCTURE
Dual class
• 35,000 A class shareholders
– 1 share each with weighted voting
• 64,500 B class shareholders
– 242 million shares issued
BENEFITS OF LISTING
• Fair value for existing shareholders
• Increased liquidity
• New equity to fund future development
• Increased commercial disciplines
AWB LIMITED’S INITIAL PUBLIC OFFER
Andrew LindbergChief Executive and Managing Director, AWB
AWB’S BUSINESS STREAMS
2001F EBIT$9.3m
Pool Management Services
2001F PBT$80.2m
Finance and Risk Management Products
2001F EBIT$70.3m
Grain Acquisition and Trading
2001F EBIT($3.0m)
Grain Technology
2001F EBIT$15.4m
Supply Chain and Other Investments
AWB’S FINANCIAL RESULTS
• Full Year 1999/2000 - $63.3 million
• Net Assets at 31 March 2001 of $648 million
• Half Year 2000/2001 - $52.4 million (increase of 25%)
• Half Year Dividend - 14 cents (Fully Franked)
AWB INVESTMENT HIGHLIGHTS
• Significant expertise and scale in global wheat marketing
• One of the largest integrated global wheat managers
• Large existing customer base
• Manager of Single Desk
• Potential to broaden range of products, services and customers in Australia & overseas
• Strong balance sheet and dividend paying capacity
AWB LIMITED’S INITIAL PUBLIC OFFER
Paul Ingleby
Chief Financial Officer, AWB
AWB FINANCIAL FORECASTS
• Full Year 2000/2001 Forecast - $79.4 million (increase
of 25%)
• Full Year Dividend = 22 cents (Fully Franked)
• Pro-forma Net Assets at March 2001 of $743 million
THE OFFER
• Offered to clients of the Lead
Manager and Retail Brokers and
institutional investors
• Underwritten by UBS Warburg
Existing Shareholder
Offer
• Open to existing A and B class
shareholders
• Top-up, cash-out and New A
class shareholder components
Employee Offer
• Open to all existing employees
of AWB
• Guaranteed minimum allocation
of 1,000 shares
Up to $20 million non-underwritten
$80 millionunderwritten
Public and Institutional
Offers
OFFER HIGHLIGHTS
• Application Price = $3.15
• Share Issue = up to 31.8 million
• Amount raised = up to $100 million
• Market Capitalisation Post Offer = $860 million
• Dividend Yield (Fully Franked) = 7.0%
• Price to Earnings Multiple = 9.7 times
OFFER TIMETABLE
Offer Opens 23 July
Offer Closes 15
August
ASX Listing 22
August
AWB LIMITED’S INITIAL PUBLIC OFFER
Monday 9 July 2001