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

Key risks (continued)Loss of accreditation• AWB’s ability to export wheat is dependent on accreditation by the Wheat Export Authority. If AWB were to lose this accreditation it would not be able to exportwheat, which would significantly impact future earningsStrategic initiatives• AWB is currently engaged in strategic initiatives involving its Commodities and Financial Services businesses and its shareholding in Hi-Fert. Potentialtransactions involving these businesses would lead to a change in the sources of AWB’s earnings and result in variability in earnings over time• The review of strategic initiatives involve ongoing and potential future transaction costs and involve significant amounts of management’s timeWinding down of Brazil and India operations• As previously announced, AWB is in the process of winding down its Brazil and India operations. While AWB has provided an estimate of one-off losses/costsassociated with this process for the year ended 30 September 2009, the Company is exposed to the potential for losses to exceed this amountRefinancing requirements• AWB is exposed to risks relating to the availability and terms of the refinancing of existing debt instruments and facilities• In the case that some or all of these facilities are refinanced, they may be on less favourable terms for AWB than is currently the caseCredit ratings• AWB maintains a dual credit rating structure whereby AWB Harvest Finance (“AWBHF”) and AWB Limited are separately rated by Standard & Poor’s. On 23 July2009, Standard & Poor’s affirmed the investment grade ratings of AWBHF and AWB Limited. AWBHF has a short term rating of A-1 and a long term rating of A(CreditWatch negative). AWB Limited has a long term rating of BBB- (CreditWatch negative). AWB expects that the successful completion of the equity raisingdescribed in this presentation will strengthen AWB’s credit rating profile• AWB’s available and cost of funding is exposed to potential changes in either of these credit ratingsImpact of interest rate changes• AWB’s interest cost on floating rate debt is exposed to changes in benchmark interest rates• AWB manages its exposure to adverse fluctuations in floating interest rates by entering into interest rate hedging instruments, however the impact of interest ratehedging may be negative depending on the direction, timing and magnitude of movements in underlying ratesNot for distribution or release in the United States or to U.S. persons38 23 September 200945