November 15, 2012

GrainCorp reported a 19% rise in net profit for the fiscal year ended September 30, 2012.

GrainCorp also provided an update on its strategy, including growth initiatives to deliver incremental underlying EBITDA of approximately US$110 million over the next four years.

GrainCorp Managing Director and Chief Executive Officer Alison Watkins said the sustained improvement in financial performance in the 2012 financial year had been driven by strong volumes, amplified by the substantial progress made in capturing value from the company's integrated assets and global operations.

Its Storage & Logistics successfully handled receivals of 12.2 million tonnes (2011: 14.9 million tonnes) on top of the six million tonne carry-in; along with a record export task of 10.6 million tonnes (2011: 8.1 million tonnes).

Their Marketing reported another strong result in 2012 having traded a record 6.9 million tonnes of grain, including increased international sales of 4.4 million tonnes to more than 80 customers in over 25 countries.

Watkins said that the current eastern Australia harvest was generally proceeding positively, "Production forecasts average about 18.3 million tonnes. 2013 volumes will be supported by strong export demand and the above-average carry-in of 4.3 million tonnes."

The company has provided a detailed update on its strategy and detailed growth initiatives targeting incremental underlying EBITDA of approximately US$110 million by the end of 2016, through a capex allocation of ~US$250 million.

Pertaining to the indicative, nonbinding proposal from ADM on October 19 to acquire the outstanding shares in GrainCorp at a price of US$11.75 per share in cash, the GrainCorp board has determined that the Proposal materially undervalues GrainCorp and has advised ADM accordingly.