Change to the Malt Market

Rob Wicks Business Unit Manager Barley and Malt Joe White Maltings

• BdiltiBlltVitiiBegan producing malt in Ballarat, Victoria in 1858 • CtlltltiAtliCurrently largest malt company in Australia with 8 plants in 6 states • Became par t of ABB G rai n i n 2004 Malting Process Clean and Grade Barley ↓ Steepp( (24 hours) ↓ Germinate (96 hours) ↓ Kiln (24 hours )

Malt is a friable grain with which when mashed in water at suitable temperatures will provide sufficient amino acids and carbohydrates to nourish yeast and produce beer. ( may wish to add hops for bitterness) How is it made Previously a Labour Intensive Industry Now a capital intensive industry Cost inputs (% Malt Price)

• BlBarley in ma lt – 70% • Energy, water and effluent – 5%

It’s all about the barley World Barley for Malt Malt Price Influences • Beer Market • Barley Market •Maltinggpy Capacity TOP TEN BREWERS As at end of 2007

Yanjing Molson-Coors . hl) ll Tsingtao Brewery Brewery Group Group Carlsberg lume (mil lume oo Baltic Beverages Holding BBH Heineken uction V dd Anheuser Busch-Busch

Pro InBev SABMiller

0 50 100 150 200 250 300

Source : The Barth Report 2007 Beer Production

700

600

hl 500 2004 400 2005 d'n, mil 300 2006 2007 200 eer Pro BB 100

0 Africa America Asia Oceania EuropeCIS Chinese Beer Production Barley Supply

Barley P roduction

Australia

Africa 200 Far east Asia 15 0 Near east A sia 10 0 Ot her

50 N&C America

0 CIS 2004 2005 2006 2007 2008e Europe Malting Barley Exports

• Europe, Australia and Canada key to Malting Barley price Toppgp Ten Malting Companies

Rahr

Greencore

JWM

BoortmaltCofco Russky Solod Existing Planned Supertime United MaltCargill Malt Holdings Inc. Holdings Soufflet

Malteurop (incl. ADM) 0 500 1,000 1,500 2,000 2,500 Malting Capacity ('000 mt)

• Top t en malti ng compani es prod uce approxi mat el y 9 ,400 , 000m t = 44% global malt production • Top ten brewing companies produce over 60% of global beer production Malt Exports Russia

Russian MaltMalt Imports Imports

600,000 500, 000000 400,000 s ne 300 ,000 nn

To 200,000

100,000 0 2002 2003 2004 2005 2006 2007 Japan’s Imported Malt (1991~2008) SOURCE; KIRIN, RMI CONFERENCE 2007

900 (in 1, 000mt) Max.Volume (1992) 806,226t Total Quantity 800 2006(()Estimate) 700

600

500

400 Launch of New genre 300 by Kirin & Asahi 200 Launch of Happoshu by Kirin

100

0 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06

708 OVERVIEW OF INVESTMENTS / DIVESTMENTS 2003-2006 (III) Source; Malteurope RMI Conference 2007

Metric Tonnes INCREASE OF DECREASE OF NET CAPACITY CAPACITY E.-U.-27 490 000 970 000 - 480 000 EAST EUROPE 1 040 000 ? + 1 000 000 NORTH AM. 420 000 570 000 - 150 000 SOUTH AM. 230 000 - + 230 000 AUSTRALIA 100 000 40 000 + 60 000 CHINA 500 000 100 000 + 400 000 2 780 000 1 685 000 1 100 000

2003 2006 WORLD BEER PRODUCTION 1 478 Mio hl 1 675 Mio hl 197 Mio hl + 2 200 000 T of malt Malt Processing Fee; source SABMiller RMI conference 2007

Australian Maltsters

Australian Malt Production

900 800 700 MALTEUROPE 600 BBM 500 KIRIN 400 ADMALT 1000MT 300 MALTCO 200 JWM 100 0 1995 2000 2004 2007 2008 JWM Plant Locations

Brisbane

Tamworth Perth

Adelaide Ballarat

Delacombe Lake Gardens Devonport

Pt Adelaide Cavan Asian Markets

Asia MaltMalt ImportsImports

900000 800000 Vietnam 700000 Thailand 600000 Singapore 500000 nes Philippines nn 400000

To 300000 Malaysia 200000 Korea 100000 Indonesia 0 India 2000 2001 2002 2003 2004 2005 Future

Threats • Energy and water prices relative to competitors. • CtitifChiCompetition from China. Oppor tunit ies • Superior access to quality Barley • Proximity to high growth markets in Asia Thank You

• Questions