AWB Limited - 2004 Annual Report

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2004 31. FINANCIAL INSTRUMENTS (continued) (b) Foreign exchange risk The consolidated entity enters into forward exchange contracts and options, in accordance with board approved limits for the following purposes; to hedge (or hedge a proportion of ) sale and purchase commitments denominated in foreign currencies and for trading purposes. The following table sets out the gross value to be settled under foreign currency contracts, the weighted average exchange rates and the settlement periods of outstanding contracts for the consolidated entity. All amounts are stated at the Australian dollar equivalent. Consolidated 2004 2003 2004 2003 Forward exchange contracts Weighted average rate $'000 $'000 Settlement not later than one year Buy US dollars, Sell Australian dollars 0.7025 0.6432 235,888 358,582 Sell US dollars, Buy Australian dollars 0.7046 0.6437 (366,669) (478,215) Buy US dollars, Sell euro – 1.1268 – 360,820 Sell US dollars, Buy euro – 1.1242 – (339,212) Buy euro, Sell US dollars – 1.1242 – 350,749 Sell euro, Buy US dollars – 1.1268 – (372,246) Buy Canadian dollars, Sell Australian dollars 0.9215 0.8918 62,440 43,406 Sell Canadian dollars, Buy Australian dollars 0.9252 0.8729 (103,665) (51,050) Buy US dollars, Sell Canadian dollars – 1.4142 – 148 Sell Canadian dollars, Buy US dollars – 1.4142 – (155) Buy Canadian dollars, Sell US dollars 1.2990 1.5040 6,541 411 Sell US dollars, Buy Canadian dollars 1.2990 1.5040 (6,390) (370) Buy CHF francs, Sell US dollars 1.2641 1.3434 332 2,238 Sell US dollars, Buy CHF francs 1.2641 1.3434 (328) (2,203) Buy GBP pounds, Sell Australian dollars – 2.4444 – 2,444 Sell GBP pounds, Buy Australian dollars – 2.4588 – (2,459) Sell euro, Buy Australian dollars 1.2641 – (1,765) – Sell New Zealand dollars, Buy Australian dollars 1.0666 – (1,000) – Total not later than one year (174,616) (127,112) Settlement later than one year but not later than two years Buy US dollars, Sell Australian dollars 0.6987 0.6190 1,069 1,233 Sell US dollars, Buy Australian dollars 0.6921 0.6172 (1,296) (1,236) Buy Canadian dollars, Sell Australian dollars 0.8696 0.8849 1,438 1,729 Sell Canadian dollars, Buy Australian dollars 0.8896 0.8823 (8,146) (1,678) Total later than one year but not later than two years (6,935) 48 Total (181,551) (127,064) 92
31. FINANCIAL INSTRUMENTS (continued) (b) Foreign exchange risk (continued) Consolidated 2004 2003 2004 2003 Currency options Weighted average strike rate $'000 $'000 Not later than one year Buy Australian dollar Call, US dollar Put 0.7345 0.6729 56,445 60,108 Buy Australian dollar Put, US dollar Call 0.6914 0.6460 (14,514) (18,075) Sell Australian dollar Call, US dollar Put 0.7481 0.6779 (33,720) (38,967) Sell Australian dollar Put, US dollar Call 0.6804 0.6380 37,119 39,892 Total 45,330 42,958 The net deferred costs and exchange gains and losses on foreign exchange hedges of anticipated foreign currency sales and purchases recognised in the statement of financial position and the timing of their anticipated recognition as part of sales and purchases are: Consolidated Net deferred gains/(losses) 2004 2003 $'000 $'000 Not later than one year (1,655) 2,117 Later than one year but not later than two years 83 – (1,572) 2,117 The consolidated entity enters into foreign exchange transactions with external counterparties on behalf of AWB (International) Limited. For all such deals a back to back transaction is entered into with AWB (International) Limited. The following table sets out the gross value to be settled under foreign currency contracts, the weighted average exchange rates and the settlement periods of outstanding contracts in the consolidated entity on behalf of AWB (International) Limited. All amounts are stated at the Australian dollar equivalent. Consolidated 2004 2003 2004 2003 Forward exchange contracts: Weighted average rate $'000 $'000 Settlement not later than one year Buy US dollars, Sell Australian dollars – 0.6462 – 160,392 Sell US dollars, Buy Australian dollars 0.6977 0.6404 (1,301,580) (1,639,580) Buy US dollars, Sell euro 1.2330 1.1254 9,254 349,642 Sell US dollars, Buy euro – 1.1180 – (11,511) Buy euro, Sell US dollars – 1.1180 – 11,968 Sell euro, Buy US dollars 1.2330 1.1254 (9,306) (361,218) Total not later than one year (1,301,632) (1,490,307) Settlement later than one year but not later than two years Sell US dollars, Buy Australian dollars 0.6809 – (149,856) – Total later than one year but not later than two years (149,856) – Total (1,451,488) (1,490,307) 93
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Annual Report 2004
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Who We Are AWB Limited (AWB) is Aus
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Finance AWB harvest finance book pe
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Five Year Summary 2004 2003 2002 20
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Chairman’s and Managing Director
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To continue building its capability
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Pool Management Services Highlights
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AWB National Pool participants. AWB
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Landmark Highlights Integrated Land
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the integration, Landmark has reloc
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Finance and Risk Management Highlig
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Finance Limited, a wholly owned, ba
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Grain Acquisition and Trading Highl
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through the AWB Geneva office, both
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Supply Chain & Other Investments Hi
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The Five Star Feed Mill, located on
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Our People AWB employs over 2,700 p
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More than 70% of AWB’s employees
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Our Social Commitment Together with
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Social service providers While not
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7. Richard Fuller General Manager,
Page 43 and 44: Independence All of the current 11
Page 45 and 46: Services Agreement Committee The Se
Page 47 and 48: its observance provides the foundat
Page 49 and 50: Promotion Committee and Founding Ch
Page 51 and 52: 1. Brendan Stewart Chairman, Non-ex
Page 54 and 55: DIRECTORS' REPORT Your directors su
Page 56 and 57: DIRECTORS' REPORT (continued) REMUN
Page 58 and 59: DIRECTORS' REPORT (continued) DIREC
Page 60 and 61: DIRECTORS' REPORT (continued) DIREC
Page 62 and 63: STATEMENT OF FINANCIAL PERFORMANCE
Page 64 and 65: STATEMENT OF CASH FLOWS FOR THE YEA
Page 66 and 67: NOTES TO AND FORMING PART OF THE FI
Page 106 and 107: INDEPENDENT AUDIT REPORT TO THE MEM
Page 108 and 109: SHAREHOLDER COMMUNICATION FINANCIAL
Page 110 and 111: GLOSSARY AWB Basis Pool AWB Basis P
Page 112: Head Office 380 La Trobe Street Mel
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AWB Limited - 2004 Annual Report

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