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FY10 guidanceManagement estimate a FY10 range for continuing businesses PBT (presignificant items) of $95-115m 1 prior to equity raising benefits – expectedannualised interest benefit from equity raising of $20-25m• Commodities Management – Australia– Marginally lower result than FY09– 22Mt harvest size and regional distribution in line with historical averages (positive for GrainFlow,MPT and railfreight)– AWB pool volumes of 3.0Mt (2.6Mt in 2008/09)– Lower grain marketing and chartering profits after strong FY09 performance and reduced workingcapital• Commodities Management – Geneva– Marginally lower result than FY09– Lower chartering revenues following a strong FY09 not being fully offset by developing Black Seaorigination• Landmark– Realisation of >$25m reduction in fixed costs over 2009 base-line– A return to normalised purchasing patterns in crop chemicals will be partially offset by pricereduction due to strengthening A$ and continued oversupply– Improvements in LFS earnings across insurance and lending (the latter largely due to the increasedequity base relative to FY09 average)– Hi-Fert accounted for separately as held for sale1. Excluding significant items which are expected to be approximately $15-20m including ongoing costs associated with class actions and costs associated with wind-down of India and Brazil.Not for distribution or release in the United States or to U.S. persons24 23 September 20096. Debt refinancing1. OverviewNot for distribution or release in the United States or to U.S. persons2523 September 200937
Annexure II – Investor Presentation (continued)Debt refinancingCorporate debtfacilitiesRing-fencedfacilitiesOffshoreworking capitalfacilities• Credit approved term sheets received for corporate debt facilities– Syndicated facility - $150m limit maturing Sep-11– Inventory financing - $175m limit maturing Sep-10– Receivables securitisation - $250m limit maturing Oct-10• Core banking group retained• Management targeting maintenance of investment grade creditrating• Interest in seasonal 2009/10 Harvest Finance facility exceedsrequired capacity• Discussions well advanced for refinancing near term maturities ofLandmark Financial Services• Current Geneva facilities of US$530m across 9 lenders• Facilities are largely trade finance, inventory and receivablefacilities, that become committed once drawnNot for distribution or release in the United States or to U.S. persons26 23 September 2009Debt covenants for corporate debt facilitiesFinancial covenants provide substantial headroom• Two key covenants tested quarterly– Financial charges ratio: AdjustedEBITDA 1 / Interest 2– 2.0x at Dec-09 progressivelyrising to 3.0x from Oct-10– Leverage cover ratio: AdjustedDebt / Adjusted EBITDA 1– 4.0x at Dec-09 progressivelyreducing to 2.75x from Jul-11• AWB Group cash flows can beutilised to repay / amortisecorporate debt facilitiesProforma forecast covenant groupnet debt ($m)490313FY09 Forecast OffshoreProforma Working CapitalCorporate Group DebtNet Debt82InventoryFinancingFacility²95FY09 ForecastProformaCovenant GroupNet Debt1. Adjusted EBITDA for covenant purposes of $75-85m expected for FY09 which excludes income from Harvest Finance, offshore subsidiaries and ring-fenced Landmark Financial Services.2. Net debt for covenant purposes excludes inventory financing facility of up to $200m. Adjusted interest expense for the purposes of the financial charges ratio includes interest expense on theinventory financing facility.Not for distribution or release in the United States or to U.S. persons27 23 September 200938
Page 1 and 2: ABN 99 081 890 459To:The ManagerCom
Page 3 and 4: Important informationRETAIL INFORMA
Page 5 and 6: Letter from the Chairman2 October 2
Page 7 and 8: What should you do?1. Read this Ret
Page 9 and 10: Section 1 - Overview of the Equity
Page 11 and 12: Section 2 - How to Apply - Eligible
Page 13 and 14: Section 3 - TaxationSet out below a
Page 15 and 16: Section 4 - Important Information f
Page 17 and 18: GlossaryTerm16Definition$ or A$ or
Page 19 and 20: Annexure I - ASX Equity Raising Ann
Page 25 and 26: Annexure II - Investor Presentation
Page 37: Annexure II - Investor Presentation
Page 59 and 60: Shareholder Information Line on 130
Page 61 and 62: Corporate DirectoryAWB LimitedABN 9
Page 63 and 64: How to complete the Entitlement and
Page 65: Shareholders who are eligible to pa

Retail Entitlement Offer - Documents Mailed to ... - AWB Limited

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