Scheme Meeting - Chairman's Script - AWB Limited

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• through Agrium’s Advanced technologies unit the company is committed to protecting and
preserving the environment and develops leading edge environmentally friendly controlledrelease
products to the benefit of producers around the world; and
• Agrium’s Wholesale division distributes products for farmers which enhances their crop
yields and quality. It produces 8 million tonnes of fertiliser globally (a total of 16 million
tonnes is marketed through all three business units).
Agrium have indicated that they plan to create additional value for AWB and Landmark domestic
and international customers. This will include the introduction of a range of new retail products and
services, including private label fertiliser and crop protection products that will build on Landmark’s
success and provide competitive new product lines for Australian producers.
As a growth oriented company, Agrium intends to invest in the business given its strong balance
sheet and proven growth strategy of diversification.
Agrium has stated they intend to establish the group’s regional hub in Australia for expansion into
the Asia Pacific region over time. This has the potential to deliver new international customers for
Australian producers. This is similar to Agrium’s strategy already in South America where
Argentina is used as the South American hub.
Finally, Agrium wants to retain existing, experienced management which is a policy they have
adopted with other acquisitions in South America and Europe.
They have indicated there will be no reduction in AWB’s rural footprint and service to growers.
Over time these services are likely to expand which will result in more investment in rural and
regional Australia.
To recap, your directors have unanimously formed the view that the Scheme is in the best interests
of AWB Shareholders for the following reasons:
• the Independent Expert has concluded that the Scheme is fair and reasonable and is the
best interests of AWB Shareholders in the absence of a superior proposal;
• the proposed consideration of $1.50 per share represents a significant premium to recent
trading prices on the ASX; and
• the Scheme represents an opportunity for AWB Shareholders to realise certain cash value
for their shares and is superior to other strategic options available to AWB.