GRAINCORP LIMITED — Regulatory Filings 2014

Aug 31, 2014

==> picture [46 x 56] intentionally omitted <==

1 September 2014

The Manager Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

Via Market Announcements Platform

Dear Sir/Madam,

GrainCorp Limited (ASX: GNC)

Investor Presentation

The attached Investor Presentation will be used by GrainCorp for the purpose of a series of planned investor meetings in the USA and Asia during September.

The presentation includes early commentary regarding the next winter crop which is relevant to GrainCorp’s 2015 financial year.

Yours sincerely,

Gregory Greer Company Secretary

GrainCorp Limited

Level 28, 175 Liverpool Street Sydney NSW 2000 PO Box A268 Sydney South NSW 1235 T 02 9325 9100 F 02 9325 9180

==> picture [596 x 14] intentionally omitted <==

ABN 60 057 186 035

graincorp.com.au

Investor Presentation September 2014

==> picture [721 x 46] intentionally omitted <==

==> picture [721 x 394] intentionally omitted <==

GrainCorp is Australia’s leading agribusiness

 

Integrated Business Model with an international “end-to-end” grain supply chain connecting consumers to growers

 

Unique portfolio of local storage and logistics assets and local and international downstream processing assets linked by a global Marketing platform

Global exposure to attractive grain industry fundamentals with strong demand growth for grain and processed grain coupled with origination   advantages

 Strategic initiatives aimed at reducing variability and delivering substantial increase in underlying EBITDA by end FY16increase in underlying EBITDA by end FY16  Track record delivering corporate objectives and strategy execution  

Strategic initiatives aimed at reducing variability and delivering substantial increase in underlying EBITDA by end FY16increase in underlying EBITDA by end FY16

2

Delivering on our corporate objectives

==> picture [721 x 313] intentionally omitted <==

----- Start of picture text -----

1 2 3
Improving Managing Delivering
returns variability growth
Return on Equity % EBITDA by segment [(1)] EBITDA - $M
414
395
350
Allied
6%
212
Oils
160
17%
S&L
41%
23%MaltMalt Dividends – cents per share
Marketing
13%
----- End of picture text -----

==> picture [721 x 266] intentionally omitted <==

----- Start of picture text -----

414
395
350
Allied
6%
212
Oils
160
17%
S&L
41%
23%MaltMalt Dividends – cents per share
Marketing
13%
Majority of EBITDA growth
from non-S&L businesses
----- End of picture text -----

1. FY13 EBITDA.

3

Strength of our integrated business model

• →

• Wheat, barley, canola representing 35% of global traded grains and oilseeds

• Three core • Focus on “drier climate” grains where

• grains we have a comparative advantage through origination, freight differentials and technical expertise

• “End to end” grain supply chain presence

• Three • Create and capture value in our core

• integrated grains along the grain chain, with

• grain deep insight into consumer

• activities requirements in these grains

• Australasia, North America and →

• Europe supply over 50% of global trade in our core grains

• Three

• operating

• geographies

• Provide market insight and price risk management with multi-origin capability to our consumers

==> picture [140 x 126] intentionally omitted <==

----- Start of picture text -----

Global grains traded [(1)]
Other
8% Wheat
30%
Corn
23%
Barley
3%
Canola
Sorghu 2%
Soybean m
32%
2%
----- End of picture text -----

==> picture [243 x 90] intentionally omitted <==

----- Start of picture text -----

Marketing
Storage &
Processing
Logistics
----- End of picture text -----

4

1. Excludes rice.

Diversification strategy and targeted investment to manage variability and deliver growth

Retrospective proforma EBITDA[(1)] ($M)

==> picture [721 x 326] intentionally omitted <==

----- Start of picture text -----

Post 2008 single Earnings initiatives
wheat desk included progressively
removal from FY13
Storage &
Logistics [(2)]
Marketing [(3)]
Majority of EBITDA
Malt /Flour [(4)]
growth from non-
S&L businesses
Oils [(5)]
5-year
FY09 FY10 FY11 FY12 FY13
Average
Country
9.6mmt 7.4mmt 14.9mmt 12.2mmt 10.4mmt 10.9mmt
Receivals
Grain
5.2mmt 3.5mmt 8.1mmt 10.6mmt 8.3mmt 7.1mmt
Exports
----- End of picture text -----

1. EBITDA for all segments except Allied Mills which is 60% share of NPAT.

2. Includes Country & Logistics, Ports and Corporate (excludes discontinued businesses).

3. Marketing Statutory EBITDA.

4. GrainCorp 60% share of Allied Mills NPAT plus Malt EBITDA actual for FY10 to FY12 and prior FY09 EBITDA.

5. Oils EBITDA FY09 to FY12 based on prior Gardner Smith year ended 31 March (pro forma for acquisitions, excluding grain trading) and prior Integro Foods year ended 30 June (pre synergies). FY13 EBITDA year ended 30 September 2013.

5

Our values and focus on safety

==> picture [721 x 388] intentionally omitted <==

----- Start of picture text -----

Values Safety Performance – LTIFR [(1)]
• Rolling 12 month average LTIFR [(1)] 43% lower
than same time last year (as at end March)
•
Lead indicators focusing on near miss
reporting, line leadership reviews and
significant risk reviews are improving for all
business units
----- End of picture text -----

1. Measured as Lost Time Injury Frequency Rate (“LTIFR”) calculated as the number of Lost Time Injuries per million hours worked. Includes permanent and casual employees and GrainCorp controlled contractors.

6

GrainCorp journey

==> picture [721 x 69] intentionally omitted <==

----- Start of picture text -----

2008 2009 2010 2011 2012 2012 – 2016
----- End of picture text -----

==> picture [721 x 68] intentionally omitted <==

----- Start of picture text -----

Shareholding
Creation of Malt Creation of Strategic
structure and market Malt acquisition
GrainCorp Malt acquisitions GrainCorp Oils initiatives
deregulation
----- End of picture text -----

• Removal of Grain • Acquisition of • Acquisition of • Acquisition of Schill • Acquisition of • Gamechangers  Grower’s United Malt Brewcraft USA Malz expands Gardner Smith and initiatives across Foundation Share Holdings creating a adding capacity to malting presence Integro Foods Storage & Logistics,

• • Removal of new business unit GrainCorp Malt’s into Germany creating a new Marketing and Malt Australian bulk GrainCorp Malt - ability to service • Acquisition of assets business unit • Asset Optimisation wheat export the fourth largest the craft brewing of Kirin Malt GrainCorp Oils,  initiatives in Oils monopoly single commercial malt market in North Australia expands Australia’s leading and Storage & desk  GrainCorp producer in the America malting presence integrated edible Logistics receives bulk wheat world. into Western oils business with • Port Flexibility  export accreditation • Company Australia crushing plants, LTAs and diversified to now • Acquisition of edible oil refining anticipated include malt Norton Organics in facilities and bulk regulation changes processing plants in USA, Canada, UK, UK liquid terminalsAustralia and New in • Regeneration  to Germany and Zealand reduce network complexity and

• Australia supply chain cost

• $51M EBITDA Growth $395M[FY13]

• <$400M Market Capitalisation ~$2B[Sep-14]

7

Grain storage and logistics assets and capabilities

Our eastern Australia grain network

Assets and capabilities

• Project Regeneration announced June 2014  focussed investment to reduce complexity and better serve customer – targeting $5/t reduced rail costs

• Investment in network a necessary response to increasing port capacity in eastern Australia.

• Approximately 180 upcountry receival sites with ~20mmt of storage capacity

• 7 bulk ports with ~15mmt elevation capacity

• • 2 packing facilities handling containerised grain exports

• Manage 12+ grain trains with more than 4mmt rail freight capacity, including 4 company owned trains

• Largest bulk exporter of eastern Australian grain

• • 150+ active grain buyers competing in our network

• →

• Infrastructure network cannot be easily replicated replacement value substantially greater than book value

• Infrastructure presence supported and linked by domestic and international grain Marketing capability

8

Global portfolio of grain processing and complementary facilities

• Produce ~35% of Australia’s malt

• Produce ~35% of Australia's flour[(1)]

• Produce ~40% of Australia’s canola oil and ~40% of Australasia’s refined edible oil

• Import and export ~40% of Australasia’s edible oil through 12 bulk liquid terminals

• World’s 4[th] largest commercial maltster with ~1.4mmt capacity across 17 plants → the largest maltster in Canada (~50% share) and a leading malster in UK, USA and Germany

Our international portfolio of processing and complementary assets

==> picture [183 x 242] intentionally omitted <==

----- Start of picture text -----

UK /
Germany
Canada / US
----- End of picture text -----

==> picture [155 x 16] intentionally omitted <==

----- Start of picture text -----

1.Through our 60% JV share of Allied
Mills.
----- End of picture text -----

==> picture [461 x 266] intentionally omitted <==

----- Start of picture text -----

Australia / China
New Zealand
Malting facility
Oilseed crushing facility
Edible oil refining facility
Flour milling facility [(1)]
9
Bulk liquid terminal GrainCorp Marketing presence
----- End of picture text -----

Strategic initiatives  projects announced and underway

Earnings growth Gamechangers Asset Optimisation Port Flexibility Project Regeneration[(1)] Reshape Localised Oils network 3 Year Port Storage & Logistics country cluster optimisation Protocol network operation End-to-end Bulk liquid Ports Code of Rail loading Marketing export terminals growth Conduct improvements logistics Malt S&L non-grain LTAs introduced; Plan announced in June 2014. Good progress on Gamechangers; Oils Ports code of Good progress on reshaping synergies on track; Oils network conduct  network and export logistics optimisation and bulk liquid terminals expected in offering and designing rail projects underway September 2014. loading.

$515M capex commitment from FY12

10

1.Project Regeneration is expected to be EPS neutral in the near term in a normal season.

Capex supporting safety, network efficiencies and strategic initiatives

– Capex[(1)] $M

Depreciation & Amortisation – $M

==> picture [721 x 219] intentionally omitted <==

----- Start of picture text -----

141 119
122
112
106 91
78
72
62
66
----- End of picture text -----

• Stay-in-business capex increased from FY12 due to inclusion of Oils

• Growth capex reflective of investment to progress growth initiatives

• Depreciation & amortisation higher from FY12 due to inclusion of Oils and recent capex program

• FY14 capex will include ~$90M to $110M growth capex associated with progressing our earnings growth initiatives (approximately half in Oils network optimisation and bulk liquid terminals projects announced in February 2014)

• Excluding acquisitions.

11

Strong and flexible balance sheet

==> picture [721 x 300] intentionally omitted <==

----- Start of picture text -----

–
Core Debt $M GrainCorp Oils
acquisition
Schill Malz
acquisition Short-term
debt less
9
Marketing
and Oils
inventories
26
43
Long-term
debt
Cash
FY12
FY11 HY12 FY12 HY13 [(4)] FY13 HY14
Pro forma [(3)]
9 218 16 320 415 411 422 Core Debt [(1)]
1% 13% 1% 16% 20% 19% 19% Core Gearing [(2)]
Core Debt /
0.05x 0.53x 0.04x 0.67x 0.99x 1.04x 1.26x
EBITDA
----- End of picture text -----

• HY14 Core Debt[(1)] of $422M

• Flexible balance sheet → Core Gearing of 19% (in line with strategic target of <25%), debt facilities matching with asset life

• Core Debt = Total Debt less Cash less Marketing and Oils grain and oilseed inventory.

• Core Gearing = Core Debt / (Core Debt plus Equity).

• FY12 Pro forma Core Debt / EBITDA includes Oils acquisition debt and FY12 EBITDA as detailed in the ASX Announcement dated 28 August 2012. 4. HY EBITDA based on last twelve months (“LTM”) as at Mar-13. Includes Oils LTM.

12

Other Updates

CEO Announcement

Ports Flexibility

• Announcement of Mark Palmquist as Managing Director and CEO in August 2014.

• Commencing 1 October 2014.

• Ports mandatory code of conduct expected to be released by the Department of Agriculture in September 2014.

• GrainCorp to continue seeking further deregulation of its grain port terminals where competition exists.

Project Regeneration

Next Winter Crop

• Project announced in June 2014 - additional $200m investment over three years.

• Good progress implementing the plan  closing sites, cluster meetings complete, ~80 FTE reduction and designing rail loading improvements.

• “ExportDirect” and network of around 180 sites to be open for coming harvest.

• Expected to be EPS neutral in the near term in a normal season.

  • Winter crop of 16.4mmt[(1)] currently forecast (does not include summer crop forecast) which is approximately an average crop.

  • However, winter crop profile expected to be heavily skewed to southern regions where competition is greater, similar to FY14.

  • Winter crop dependent on weather during next few months.

• See details in Appendices.

• Eastern Australia’s wheat, barley and canola production estimates, using the average of Australian Crop Forecasters’ August 2014 report and ABARES June 2014 report. (Does not include summer crop forecast.)

13

Questions

==> picture [721 x 393] intentionally omitted <==

Appendices

==> picture [720 x 391] intentionally omitted <==

Global exposure to attractive grain industry fundamentals

Global grain demand

Global malt demand

Global canola oil demand

  - Australian canola oil exports have trebled in the past 10 years, in line with global trade growth

• Global malt export trade has doubled in the past 40 years

• Global grain trade has doubled in the past 40 years

• Demand growth to 2020 expected to be driven by developing world

• Global trade of our core grains expected to double by 2050, driven by Middle East and North Africa (“MENA”), eastern Africa and Asia

• Global demand growth supported by changing consumer preferences

East and North Africa • Supported by strong global (“MENA”), eastern Africa demand for scotch whisky • Strong demand from Asia and Asia Global Grain Trade[(1)] Global Malt Trade[(2)] Global Canola Oil Trade[(3)] Population (billion) Global (mmt) Barley & canola trade (mmt) Rest of World (mmt) Wheat trade (mmt) Asia & Africa (mmt)

==> picture [721 x 68] intentionally omitted <==

1. Source: GrainCorp estimates based on UN (Population Revisions 2010) and FAO. 2. Source: USDA and IGC. 3. Source: USDA. kmt is thousand metric tonnes.

16

Origination advantages to supply global demand growth markets

Wheat Imports to 2050[(1)]

Demand growth in proximate regions

==> picture [321 x 366] intentionally omitted <==

----- Start of picture text -----

Current wheat imports (mmt)
Wheat import growth to 2050 (mmt)
Wheat import growth to 2050 (%)
98%
200% 90%
140%
MENA Sub-Saharan Sub- Asia (ex-
Africa Continent China)
Middle
North Africa
East
Asia
Sub-
Saharan
Africa
----- End of picture text -----

• Australia has freight advantages to importdependent and growth markets for grain and processed grains (malt and canola oil)

• For example Middle East, Africa and Asia expected to account for ~85% of the ~110mmt increase in global wheat trade to 2050

Australian grain quality advantages

• Eastern Australia produces high quality grain grades highly sought in global growth regions

• Australian wheat (and barley) has strong quality advantages such as:

• Wheat → dry, clean, mid-high protein, white with high flour extraction. Ideal for Asian noodles and Arabian flat breads

• →

• Barley dry, clean with desirable characteristics. Ideal for Chinese malt and MENA feed markets

17

1. Sources: USDA, US Wheat Associates.

Project Regeneration – Overview

Project Overview	• Additional $200m(1) investment in the Storage & Logistics network over three years – upgrade of rail capability at primary sites and 3 new sites • Focus on~180upcountry receival sites with storage capacity of~20mmt
Rationale	• Efficient and more reliable logistics for export grain • Strengthen Storage & Logistics network by reducing cost, simplifying operations and focusing investment on fewer sites • Enhancing the attractiveness of our network for growers, export customers and
Focused	domestic customers - targeting$5/treduced rail costs • Improve competitiveness in an evolving eastern Australia competitive landscape 1. Reshaping the country network 2. Localised cluster operation 1 2
investment	3. End-to-end export logistics offering 3 4
Timing	4. Rail loading improvements • Reshaping network, cluster operations and logistics model in place for next harvest optimal time given low carry-out volumes into FY15 • Funding for sidings – track owner support to upgrade
Other	• To be funded from cashflow and debt facilities. Incremental ~$15m capex in FY14 • Expected to be EPS neutral in the near term in a normal season • Rail capability upgrades – over next three years (ie FY14 – FY16)

1. Includes Restructuring costs of $4m to be reported as significant item in FY14 earnings

18

Reducing supply chain cost

1. Reshaping the country network

2. Localised cluster operations

Challenge

Response

Costly supply chain

• ~180 sites receive 90% of all delivered grain

• Long tail of high cost smaller sites

• Low volume sites

• Average site cost is 50% higher

• Average receivals is <10K tonnes

Reconfigure the network to ~180 sites

• Primary sites are export focused on rail

• Major sites focused on domestic outload

• Flex sites to meet segregation requirements

Localised cluster operations

• Network of 34 clusters

• New country structure linked to clusters

Outcome

• Simplified and more efficient network to retain delivered grain

• Lower operating costs - reduction of ~80 full time roles

• Resources concentrated on fewer sites (grain handling equipment, employees, future stay-inbusiness capex)

19

Reducing supply chain complexity

3. End-to-end export logistics offering

4. Rail Loading upgrades

Challenge

Response

Complex supply chain

• Fragmented and inefficient logistics

• grain lost to road and reduced market share

• Only 11 sites can quickly handle and load an export unit train

• most export trains shunted across 2-3 sites

==> picture [194 x 203] intentionally omitted <==

Upgrading rail capability at 68 primary sites

• 3 new primary sites

• New rail outloading bins and equipment

• Siding extensions

End-to-end logistics offering – “ExportDirect”

• Bundled handling and transport for export grain  simplified and more reliable export logistics

• Optimal positioning of grain for export rail outload or domestic rail and road outload

Outcome

• Faster train cycle times  point-to-point unit trains of 40+ wagons loaded at primary sites

• Potential to return up to 1mmt to rail

20

Network and operating model

Our eastern Australia grain network

Network Clusters & “ExportDirect”

• Buyers can compete for export or domestic grain at any site

• Swapping grain between sites to:

• maximise export rail task from primary sites

• move rail or road grain from the most suitable site

Bundled handling and transport

21

Rail capability investment

Investment in Primary sites

• Emerald area • Dalby area • Wyalong area New Sites	Modular assets 1. Rail bin loaders 2. Fast elevators 3. Pre-position bin Update assets • Speed elevators • Convert bins • New systems Track owner support required • Siding extension • Crossovers Brownfield Rail Siding Greenfield
	Conceptual only

22

Eastern Australia competitive landscape

Upcountry Storage	Capacity
GrainCorp	~20mmt
Competitors	~10mmt
On-farm	~10mmt
Total	~40mmt
Production / Exports
Eastern Australia grain production	~18mmt
Domestic demand	~10mmt
Exportable surplus	~8mmt

Grain Export	Capacity
GrainCorp	~15.0mmt
Competitors(1)	~5.0mmt
Container exports	~3.5mmt
Total	~23.5mmt

QLD On farm storage Other bulk handlers Domestic demand

NSW Other bulk handlers On farm storage Domestic demand

Upcountry Storage

Competitors

Ports

GrainCorp Port (all regulated) Competing Port (regulated) Competing Port (unregulated) Announced Port (unregulated)

VIC Other bulk handlers On farm storage Domestic demand

1. Including competing ports announced at Port Kembla and Geelong.

23