Annual Report - AWB Limited

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Highlights• Strongest result to date with EBITDAup 66%, to $90m• Improved processes, margin controland efficiency gains• National relaunch of the Landmark brandFertiliser gross profit was $39.5m, up 73% (excluding Hi-Fert).The business benefited from strong early demand as farmers builtup reserves in the first half of the year, particularly across SouthAustralia and Western Australia. On the east coast of Australia,the business buys, holds and sells fertiliser and benefited fromthe price rally. On the west coast, the business on-sells fertiliserand makes a volume gain when agricultural activity is buoyant, asin the first half of the financial year.LivestockLivestock gross profit was $61.8m, up 7%. The livestock businesswas impacted by lower national sales as stock was held back torebuild herds. The strong Australian dollar also affected exportvolumes. Overall, cattle volumes were down 1% and sheepvolumes were down 4.4%. The business benefited froma range of process changes to improve commission controls.WoolWool gross profit was $11.2m, down 21%. Bale volumes sold weredown 13.6% on the pcp, particularly in Western Australia. Volumeswere down generally across the market due to the continuedreduction in flock numbers.Real EstateGrowing high-value client relationships has also been a focusduring the year. With 13,000 clients generating more than 80%of Landmark’s EBIT, this is one of the keys to building a sustainablebusiness. The business is working to improve merchandisestandards, ranging and density and provide better retail trainingfor customer facing employees. Supporting this work is extensiveresearch into customer segmentation and the national relaunchof the Landmark brand.In addition, the business introduced a national rewards program– Landmark Rewards – where customers earn points every timethey make a purchase from the program range at participatingLandmark outlets.Merchandise and FertiliserMerchandise gross profit was up 34% to $172.1m, generatedby a combination of improved margin management and price.Improved weather conditions drove an early start to the seasonon the east coast of Australia and record global commodity pricesand chemical and fertiliser prices increased business activity.Real Estate gross profit was $22.7m, up 6%, due to stronger salesin the pcp in Victoria and Queensland. The business also secureda large proportion of the iconic rural properties offered for saleduring the year including S Kidman & Co in the Western AustraliaKimberley, Clyde Agricultural properties in Queensland and NewSouth Wales and Tipperary in the Northern Territory.Other investmentsThe contribution to net profit from our joint venture businesses –Hi-Fert, RD1 and AWH – was $18.5m, up 68%.Landmark Rural Services’ share of the Profit After Tax (PAT) ofHi-Fert was $10.2m, as a result of rising fertiliser prices andincreased volume. Landmark has a 50% share in this joint venture.Landmark Rural Services’ share of the PAT from the RD1 jointventure with Fonterra was $2.1m on the back of strong globalmilk prices. RD1 is New Zealand’s largest retailer of agriculturalproducts and services to the dairy sector with a national networkof more than 50 branches.Landmark Rural Services’ share of AWH’s PAT was $3.2m andreflects the reduced wool volumes in the market during the year.AWH is Australia’s only complete end-to-end service provider fromfarm gate to ship, handling approximately two-thirds of Australia’sannual wool clip.www.awb.com.au 13
Financial Services (EBITDA)2004 44.52005 31.82006 37.52007 32.52008 42.1Financial Services (EBITDA)5044.54037.542.13031.832.52010014 www.awb.com.au
Page 7 and 8: 6 www.awb.com.auFrom Peter Polson,C
Page 9 and 10: From Gordon Davis,Managing Director
Page 11 and 12: AWB todayOur client base extends to
Page 13: Landmark Rural ServicesRural Servic
Page 17 and 18: Commodity ManagementCommodity Manag
Page 19 and 20: CorporateCredit ratingsAWB maintain
Page 21 and 22: People and communityPeopleThe busin
Page 23 and 24: 22 www.awb.com.auManagement team
Page 25 and 26: 24 www.awb.com.au
Page 27 and 28: Governance at AWBAWB’s Board and
Page 29 and 30: process was conducted within the co
Page 31 and 32: Information is regularly communicat
Page 33 and 34: Recommendation 9.3 - Clearly distin
Page 35 and 36: AWB Limited BoardPeter Polson Non-e
Page 37 and 38: 36 www.awb.com.au
Page 39 and 40: AWB LIMITED Directors’ reportYour
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AWB LIMITED Notes to and forming pa
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120 www.awb.com.auAWB LIMITED Indep
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AWB LIMITED Australian Securities E
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AWB LIMITED Notes124 www.awb.com.au
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AWB Limited ABN 99 081 890 459380 L
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Annual Report - AWB Limited

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