3286 GNC Ann Rep - LoR by sdfgsg234

VIEWS: 21 PAGES: 62

									                                                                                                                                                                                                                                        Brisbane
                                                                                                                                                                                                                                              Pinkenba
                                                                                                                                                                                                                                       Fisherman Island




                                                                                                                                                                                       Goondiwindi

                                                                                                                                                                        Boggabilla


                                                                                                                                             Weemelah
                                                                                                                                                                                       North Star
                                                                                                                                                           Garah
                                                                                                                                                                                  Croppa Creek
                                                                                                                                                                             Crooble
                                                                                                                                                                            Milguy

                                                                                                                             Merrywinebone         Moree                Biniguy
                                                                                                                                                                   Gravesend              Warialda
                                                                                                                                                  Gurley                                         Delungra
                                                                                                                 Cryon
                                                                                       Walgett
                                                                                                                                               Bellata
                                                                                                          Burren Junction
                                                                                                                         Merah North     Wee Waa            Edgeroi

                                   18 million tonnes storage capacity                                                                  Culgoora            Narrabri                                                                7,000
                                                                                                                 Gwabegar
                                                                                                                                                               Baan Baa
                                                                                                                                                                 Boggabri
                                                                              Coonamble                             Baradine                                                              Manilla
                                                                                                                                                  Emerald Hill                                      Westdale
                                                                              Combara
                                                                                                                                                                        Gunnedah
                                                                                     Gular                                                                 Curlewis

                                   kilometres of rail network support
                                                   Nyngan                        Armatree
                                                                                                                         Ulamambri
                                                                                                                                                                  Nea           Warral          Tamworth
                                                                                                                                                                                                                                   4 seaboard
                                                                                                                                                 a
                                                                                                                                       We lrex
                                                                                                                                             lib




                                                                     Warren            Curban                                                                                        Werris Creek
                                                                                                                                         eta




                                                                                                                          Binnaway
                                                                                                                                           i
                                                                                                                                        Ne




                                                                                                                                               Sp

                                                                                                                                                Ca Ridg
                                                                                                                                                Ta




                                                                                       Gilgandra
                                                                                                                                                     Pr




                                                                                                                                                                                     Quirindi
                                                                                                                                                  r in

                                                                                                                                                   ro
                                                                                                                                                   m
                                                                                                                                                     em mar



                                                                                                                                                       g

                                                                                                                                                       on
                                                                                                                                                       ar
                                                                                                                                                       Co



                                                                                                                                                          an
                                                                                                                                                          er




                                                                                      Balladoran
                                                                                                                                                          a
                                                       Nevertire
                                                                                                                                                           nn




                                                                                                                                                                                      Willow Tree
                                                                                                                                                             g




                                                                                                               Mendooran
                                                                                                                                                              e




                                                                                                                                                               e



                                                                                     Eumungerie
                                                                                                                                                                 ra




                                                                                          Mogriguy             Elong Elong
                                                                    Trangie
                                                                                                            Muronbung
                                             Tottenham              Mungeribar
                                                     Albert                   Narromine                       Ballimore       Birriwa
                                                                                                Dubbo                                                                 Merriwa
                                                                                                           Wongarbon

                                   terminals               Yethra

                                                                    Tullamore
                                                                                          Narwonah
                                                                                         Wyanga
                                                                                         Tomingley West
                                                                                                             Geurie
                                                                                                              Combo
                                                                                                               Wellington
                                                                                                                          Gulgong    18 Service Centres
                                                                     Gobondery            Peak Hill
                                                                       Kadungle          Mickibri     Yeoval
                         Kiacatoo
                                                                        The Troffs       Alectown West
abalong West                                Condobolin
                                                                         Trundle
                                                                                         Goonumbla                                                                                                         Maitland
                       We ibige ey
                                  n




                                                                                        Parkes
                                 al




                                                                                                    Cumnock
                         Tu goo




                                                  Ya O g
                                                                 n
                                                       ba a




e Cargelligo
                                                              wo


                                                              ai

                                                               e
                               r




                                                    rra oth
                            Bu




                                                            at

                                                           nd
                                                          nd




                                                                                                                                                                                                    Newcastle
                                                          rri
                            ll




                                               Gu an G
                         ja




                                                       bla
                                             De




                                                   ing




                                                                                                    Manildra
                                                     g




                                                                                                                                                                                                                Kooragang Island
                                                  Bo

                                                 nn




Naradhan                                                                                                       Molong
                                             rie




                                                                                                                                                                                                                Carrington
                    Youngareen
                                   13 processing facilities                      Red Bend
                                                                                                                                                                                                    and 778 permanent
                                            ga




                                                   Burcher                                            Trajere
                                       Un




          Kikoira                                                                                     Nyrang Creek
                                   Girral              Back Creek                                                                                          Lithgow
                                                                                                      Canowindra
s                                                  Lake Cowal     Wirrinya               Grenfell
s                           Buralyang
                                                   West         Caragabal                                Woodstock
               e
    W olia
           all




                                                   Wyalong
        th




                                                                                                    Cowra
        ig




                        Tallimba                                                   Greenethorpe
     ee
     Er




                                                                          Quandialla             Noonbina
                              Buddigower              Barmedman           Bribbaree
Yenda                                                                                         Koorawatha                                                                                    Sydney
                                                                          Weedallion
                                                                                             Maimuru
                                                                            Milvale
             m are n
                  B lga
                   old n
               bo lla

               m l
             Ka oo
                        o




            dle ah
                     ro




             M om
            Be han


              Pa l




                                   staff                                                                       delivering growing solutions
          iah oo
          Ar ar
Ga




                  rk




                                                             Temora
               ck
        Ar irr
                t




             n




                                                                                                        Boorowa
        oo




          wa




                                                                       Stockinbingal
      M




       ca




                                                                                             Harden
    Pu




o
                                                                     Wa
                                                        r




                                                                                                Cunningar
                                                                         Co
                                                     rra
               gG a
              Ma ong




                                                                       lle
             on er




                                                                                                                                                                            Port Kembla
                                                                        ota
       Br anm g




                                                    Ma
            G ton
           Gr rand




                                                                          Illa



                                                                           nd a
            hw n
                 r


          us ai




                                                                             m
         ola od




                                                                              be
                                                                               bo

                                                                                un
              on
               o
               r




                                                                                 en
             Na




                                                                                   dr
            m




                                                            Junee
      Co




    Arajoel         Downside                        Shepherds
                                                   Wagga
                                  ng




Boree Creek
                               ulo
                             lbr




                                            Uranquinty
                           Mi




          Lockhart
                                        The Rock
      Pleasant Hills

              Henty West            Yerong Creek
                                    Henty
      Rand
    Brocklesby                     Culcairn


wonga




                                                                                                                                                                        GrainCorp Limited 2002 Annual Report
Bellata has over 100,000 tonnes of permanent storage and over 50,000 tonnes of bunker storage.




                                                                                       Contents
                                                                                       2002 Financial Highlights                  1
                                                                                       2002 Business Highlights                   1
                                                                                       GrainCorp Products and Services            2
                                                                                       Our Storage Network                        3
                                                                                       Chairman’s & Managing Director’s Report    7
                                                                                       Investor Information                      11
                                                                                       Financial Performance                     12
                                                                                       Key Business Areas                        14
                                                                                       Review of Operations                      16
                                                                                       Supporting Our Communities                22
                                                                                       Executive Management                      23
                                                                                       Board of Directors                        24
                                                                                       Corporate Governance Statement            26
                                                                                       2002 Concise Report                       31

Annual General Meeting
GrainCorp’s 2003 Annual General Meeting will
be held at Albury, New South Wales on Friday,
28 February, 11am.

GrainCorp Limited ABN 60 057 186 035
2002 Financial Highlights                          2002 Business Highlights
• Total revenue                    $700 million    • 12 million tonnes of grain received with increased speed
                                                     and efficiency
• EBITDA                          $119.8 million
                                                   • 6.8 million tonnes of exports
• Depreciation and amortisation    $41.1 million
                                                   • Purchased the milling assets of Goodman Fielder in
• Net profit before tax            $67.8 million
                                                     partnership with Cargill Australia
• Net profit after tax             $48.6 million
                                                   • Created Bulk Terminals Australia (BTA) in partnership with
• Earnings per share                121.2 cents      Grainco Australia

• Dividend per share                 78.0 cents    • Moved into rail operation through the lease of two engines
                                                     and 40 wagons
• Dividend yield (30/09/02)               8.0%
                                                   • Expanded grain handling operations into South Australia
                                                     with the opening of a grain receival facility at Naracoorte

                                                   • Extracted $4 million cost saving from Vicgrain merger
                                                     synergies

                                                   • 1% of profit after tax dedicated to GrainCorp Foundation




                                                                                  GrainCorp Annual Report 2002     1
GrainCorp Products and Services

             Storage & Handling
             GrainCorp’s core business. Over 300 storage facilities throughout prime
             grain growing regions. Four port terminals located in NSW and VIC and
             Bulk Terminals Australia allows access to a 5th in QLD.



                                                                     Trading
            Domestic - Grain merchants provide risk management solutions,
                                      marketing and contracting alternatives.
            Export - GrainCorp is now a direct exporter of barley and canola.



             Merchandising
             GrainCorp’s 18 strategically located Service Centres offer farm input needs
             such as fertiliser, seeds, agricultural chemicals and seasonal finance.




                                                                  Transport
               Rail - GrainCorp’s move into rail is designed to offer seamless
                   operation and negotiate the supply chain from silo to port.
                Road - Extensive road operations through eastern Australia.



             Research & Development
             GrainCorp with SunPrime breeds some of the highest yielding wheat
             varieties in production. 80% of SunPrime’s pre-tax profits are
             reinvested in Research and Development.



                                                    Technical Services
                  GrainCorp provides a crop monitoring and analysis service.




             Processing
             GrainCorp entered the flour milling business through the
             purchase of a 60% equity share of Allied Mills.




                                          Community Development
                      The GrainCorp Foundation - GrainCorp contributes 1%
                            of its annual after tax profits to rural and regional
                                 communities via the GrainCorp Foundation.




                                                                                    GrainCorp Annual Report 2002   2
                                                                                                                                                                                                        Brisbane
                                                                                                                                                                                                            Pinkenba




      QLD
                                                                                                                                                                                                     Fisherman Island




                                                                                                               Goondiwindi

                                                                                                Boggabilla


                                                                 Weemelah
                                                                                                               North Star
                                                                                Garah
                                                                                                           Croppa Creek
                                                                                                        Crooble
                                                                                                       Milguy

                                          Merrywinebone                  Moree               Biniguy
                                                                                        Gravesend                 Warialda
                                                                     Gurley                                              Delungra
                              Cryon
     Walgett
                                                                   Bellata
                         Burren Junction




                                                                                                                                          NSW
                                      Merah North          Wee Waa                Edgeroi

                                                         Culgoora                 Narrabri

                              Gwabegar
                                                                                      Baan Baa
                                                                                        Boggabri
                                  Baradine                                                                        Manilla
mbara
                                                                     Emerald Hill
                                                                                               Gunnedah
                                                                                                                             Westdale
                                                                                                                                                         Northern
    Gular                                                                      Curlewis

rmatree
                                                                                      Nea                Warral          Tamworth                        Division
                                      Ulamambri
                                                                   a
                                                         We lrex
                                                               lib




      Curban                                                                                                 Werris Creek
                                                           eta




                                        Binnaway
                                                            i
                                                          Ne




                                                                                        Sp

                                                                                          Ca Ridg
                                                                                Ta




    Gilgandra
                                                                         Pr




                                                                                                             Quirindi
                                                                                           rin

                                                                                            ro
                                                                                  m
                                                                          em



                                                                                               g

                                                                                               on
                                                                                     ar
                                                                   Co



                                                                                       an
                                                                               er




    Balladoran
                                                                                                  a
                                                                      n  ne




                                                                                                              Willow Tree
                                                                                          g




                            Mendooran
                            Me
                                                                                                    e
                                                                           m
                                                                             ar
                                                                               ra




       Mogriguy             Elong Elong


romine                      Ballimore       Birriwa
              Dubbo                                                                           Merriwa
         Narwonah
                           Geurie
        Wyanga                          Gulgong
                            Combo
        Tomingley West
                             Wellington
        Peak Hill
        Mickibri    Yeoval
s       Alectown West
                                                                                                                                     Maitland
      Parkes           Cumnock
                                                                                                                          Newcastle
                                                                                                                   Kooragang Island
                 Manildra
                            Molong                                                                                 Carrington
ed Bend

                                                                                                                                                                                                Baan Baa
                                                                                                                                                                                                 Boggabri

Western Division                                                                                                  Coonamble
                                                                                                                  Combara
                                                                                                                                                        Baradine
                                                                                                                                                                                 Emerald Hill
                                                                                                                                                                                                        Gunnedah
                                                                                                                                                                                                                        Manilla
                                                                                                                                                                                                                                  Westda

                                                                                                                         Gular                                                             Curlewis
                          Cobar                                                                                                                                                                                             Tamworth
                                                                                                                                                                                                  Nea          Warral
                                                                                     Nyngan                          Armatree
                                                                                                                                                           Ulamambri
                                                                                                                                                                                  a
                                                                                                                                                                        We lrex
                                                                                                                                                                              lib




                                                                                                         Warren             Curban                                                                                 Werris Creek
                                                                                                                                                                          eta




                                                                                                                                                             Binnaway
                                                                                                                                                                            i
                                                                                                                                                                         Ne




                                                                                                                                                                                           Sp

                                                                                                                                                                                            Ca idg
                                                                                                                                                                                            Ta er




                                                                                                                           Gilgandra
                                                                                                                                                                                      Pr



                                                                                                                                                                                              rin

                                                                                                                                                                                               ro
                                                                                                                                                                                               m
                                                                                                                                                                                       em



                                                                                                                                                                                                  gR

                                                                                                                                                                                                  on
                                                                                                                                                                                                  ar
                                                                                                                                                                                Co



                                                                                                                                                                                                     an




                                                                                                                          Balladoran
                                                                                                                                                                                                     a




                                                                                          Nevertire
                                                                                                                                                                                   n




    NSW
                                                                                                                                                                                  ne




                                                                                                                                                                                                                   Willow Tree
                                                                                                                                                                                                        g




                                                                                                                                                   Mendoora
                                                                                                                                                   Mendooran
                                                                                                                                                                                                          e
                                                                                                                                                                                    m




                                                                                                                         Eumungerie
                                                                                                                                                                                       ar
                                                                                                                                                                                           ra




                                                                                                                              Mogriguy             Elong Elong
                                                                                                        Trangie
                                                                                                                                                        g
                                                                                                                                                Muronbung
                                                                               Tottenham                Mungeribar
                                                                                       Albert                     Narromine                       Ballimore       Birriwa
                                                                                                                                    Dubbo                                                            Merriwa
                                                                                                                              Narwonah         Wongarbon
                                                                                              Yethra
                                                                                                                                                 Geurie
                                                                                                                             Wyanga                           Gulgong
                                                                                                        Tullamore                                 Combo
                                                                                                                             Tomingley West
                                                                                                         Gobondery                                 Wellington
                                                                                                                              Peak Hill
                                                                                                           Kadungle          Mickibri     Yeoval
                                                          Kiac
                                                                                                            The Troffs       Alectown West
                                 Euabalong West
                                                                                                             Trundle
                                                                                                                             Goonumbla                                                                                                 M
                                                                                                                            Parkes      Cumnock
                                                                                                        a




                               Lake Cargelligo
                                                                                             ing te
                                                                                                      th




                                                                                                    nd




                                                                                                                                                                                                                                  Newcas
                                                                                                     a
                                                                                                  Oo


                                                                                                nG
                                                                    ja




                                                                                                bla
                                                                 We




            Hillston
                                                                                              ga




                                                                                                                                        Manildra
                                                                                           Bo

                                                                                          nn




                                    Naradhan                                                                                                      Molong
                                                                                        Gu
                                                                               rie




                                                       Youngareen                                                    Red Bend
                                                                            ga




                                                                                     Burc
                                                                                      urcher                                              Trajere
                                                                          Un




                                             Kikoira                                                                                      Nyrang Creek
                                                                    Girral                 ck
                                                                                         Back Creek                                                                                        Lithgow
                                                                                                                                          Canowindra
                            Rankins                                                  Lake Cowal
                                                                                              al      irrinya
                                                                                                    Wirrinya                 Grenfell
        Merriwagga          Springs                          Buralyang
                                                                                     West         Caragabal                                  Woodstock
                                                 e
                                      W olia
                                             all




                                                                                     Wyalong
                                          th




                                                                                                                                        Cowra
                                          ig




                                                         Tallimba                                                      Greenethorpe
                                       ee
                                       Er




                                                                                                               Quandialla            Noonbina
                   Tabbita                                       Buddigower              Barmedman             Bribbaree
                 Tharbogang                                                                                                       Koorawatha                                                                Sydney
                                                                                                               Weedallion
                         Griffith                                                                                                Maimuru
                                                                                Kiacatoo                                                                             Yeoval
                                                   Euabalong West                                   Condobolin                                                    West




                                                                              We ige y
                                                                                   llib ne
                                                                                         al
                                                                                                                                                                    Cumnock




                                                                                Tu goo
                                                  Lake Cargelligo




                                                                                       r
                                                                                   Bu




                                                                                                                                     nd
                                                                                                                                      a
                                                                                                                       Gu an G
                                                                                ja




                                                                                                                                 b la
                          Hillston                                                                                                                              Manildra




                                                                                                                            in g
                                                                                                                             g
                                                                                                                          Bo

                                                                                                                         nn
                                                        Naradhan                                                                                                          Molong
                                                                            Youngareen                                                      Red Bend              Trajere
                                                                                                                  er
                                                                  Kikoira                                                                                         Nyrang Creek
                                                                                           G                                                                      Ca
                                                                                                                                                                  Canowindra                                         Lithgow
                                             Rankins                                                      Lake Cowal                  nya
                                                                                                                                 Wirrinya            Grenfell
                       Merriwagga            Springs                               Buralyang
                                                                                                          West                                                     Woodstock



                                                                    e
                                                         W olia
                                                                all
                                                                                                          Wyalong

                                                             th
                           Goolgowi
                                                             ig                Tallimba                                                      Greenethorpe     Cowra
                                                          ee
                                                          Er

                                                                                                                                        ndialla            Noonbina
                                 Tabbita                                               Buddigower              Barm                      aree
                               Tharbogang Yenda                                                                                                         Koorawatha
                                                                                                                                     Weedallion
                                       Griffith                                                                                                        Maimuru
                                                                                                                                      Milvale
                                                                   m are n
                                                                        B lga
                                                                         o n
                                                                     bo lla

                                                                     m l
                                                                   Ka ldoo
                                                                              o




                                                                  dle ah
                                                                           ro




                                                              Ar Mirr m
                                                                  Be han


                                                                    Pa l
                                                                iah oo
                                                                Ar ar
                                                        Ga




                                                                         o

                                                                        rk
                                                                                                                       Temora
                                                                     ck
                                     Murrami
                                                                      t




                                                                   n
                                                                                                                                                                    Boorowa
                                                               oo




                                                                wa
                                                                                                                                 Stockinbingal
                                                             M




                                                             ca
                                                          Pu                                                                                              Harden
         Willbriggie                             Yanco




                                                                                                                                Wa
                                                                                                                  r
                                                                                                                                                           Cunningar




                                                                                                                                 Co bo
                                                                                                               rra
                                                                       gG a
                                                                      Ma ong




                                                                                                                                   lle
                                                                     on er




                                                                                                                                                                                                                                      Port Kembla




                                                                                                                                    ota
                                                                Br anm g




                                                                                                             Ma
                        Coleambally
                                                                    G ton
                                                                   Gr rand




                                                                                                                                      Illa



                                                                                                                                      nd a
                                                                    hw n
                                                                         r


                                                                  us ai




                                                                                                                                         m
                                                                 ola od




                                                                                                                                          be
                                                                                                                                           un
                                                                      on
                                                                       o
                                                                       r




                                                                                                                                            en
                                                             Na




                                                                                                                                             dr
                                                                    m




                                                                                                                      Junee
                                                               Co




                                                          Arajoel           Downside                         Shepherds




                                                                                                                                      NSW
               Morundah                                                                                   Wagga
                                                                                               g




                                                        Boree Creek
                                                                                         lon
                                                                                       ru
                                                                                      lb




                                                                                                    Uranquinty
                                                                                   Mi




                                                                  Lockhart
                                                Urana
                                                                                                   The Rock
                                                            Pleasant Hills
    niliquin
  Denil                                                                                     Yerong Creek
                                          ands
                                      Oaklan                        Henty West
           Tocumwal                                                                         Henty
                                                            Rand
Mathoura            rriga
                  Berrigan
                       g
                  Berriga                  Sanger
                                                         Brocklesby                        Culcairn                                   Central Division
Picola
                                                Yarrawonga




                                                                                                                                                                                                                                Tharbogang
                                                                                                                                                                                                                                       Griffith
                                                                               Yelta




                                                                                                                                                                                                                                                     o
                                                                                                                                                                                                                                                    ro
                                                                                                                                                                                                                                                  Ga
                                                                                                                                                                                                                                     Murrami
                                                                                                   Carwarp
                                                                                                                                                                                                            Willbriggie                    Yanco
                                                         ull
                                            r
                                       gu




                                                                                                                             nva
                                                                                                                         Robinvale
                                                      rim




                                                                                                                                                          Balranald
                                      rin




                                                                                                                                                                                                                                                                gG a
                                                                                                                                                                                                                                                                     ng
                                                     r




                                                                                                                                                                                                                                                              on er
                                Me


                                                  We




                                                                                                                                                                                                                          Coleambally




                                                                                                                                                                                                                                                                  ro
                                                                                                                                                                                                                                                            Gr nd
                                                                                                                                                                                                                                                         rra
                                                                                                                                            oo
                                                                                                                                           Kooloonong


                                                                                                                                                                                                                                                       Na




                                                                                                                                                                                                                                                             Ga
                                                                                                                          Annuello
                                                  ille




                                                                         l




                                                                                                                                                Piangil
                                                                                                                                                P
                                                                       oo
                                                 yv




                                                                                    Ouyen
                                                                    rb
                                      a
                                             rra




                                                                                                                           Manangatang
                                     ity




                                                                  de




                                                                                                       Mittyack                                                                                                                                     Arajoel        Down
                                  n
                                           Mu




                                                               Un
                               Pa




                                                                                                                                                 Nyah West
                                                                                                                                                 N                         Moulamein
                                                                                                                              Chinkapook
                                                                  ta




                                                                                                                                                                                                                  Morundah
                                                               rri
                                                             To




                                                                                        Tempy                                                                                                                                                     Boree Creek
                                                                                                                                            e             Swa
                                                                                                                                                          Swan Hill
                                                                                                          Sea Lake                                                                                                                                          Lockhart
                                                                                               Speed                                                                                                                                      Urana
                                                               Patchewollock                                                                                                       Wakool                                                            Pleasant Hills
                                                                                                              Berriw
                                                                                 Hopetoun                                                    lbert                                 Caldwell              liquin
                                                                                                                                                                                                     Deniliq
                                                                                                   Lascelles                                                                                                                      a
                                                                                                                                                                                                                                Oaklands                       Henty Wes
                                                               Yaapeet                             Woomelang                                                        Kerang                                    T
                                                                                                                                                                                                              Tocumwal          ngamong
                                                                                                                                                                                                                              Wang
                                                                                                                                                                                       Bunnaloo                                                      Rand
                                                                                                                                                                                                   Mathoura          Berriga
                                                                                                                                                                                                                     Berrigan
                                                                                                                                                                                                                     Berrig
                                                               Rainbow                 Beulah                                                                              Womboota
                                                                                                                                                                                  ot                                                               rocklesby
                                                                                                                                                                                                                                                  Br
                                                                                                          Kinnabulla            Wycheproof
                                                                                                                                    e                Gredgwin                                                                 W
                                                                                                                                                                                                                              Warragoon
                               Yanac                                                                                                                                                 ss g
                                                                                                                                                                           Barnes Crossing
                                            Netherby                                                           Birchip                                                                             Picola
                                                                    Jeparit                     Lah                                                       Boort
                                                                                                                                                                                   Echuca                                                 Yarrawonga
                                                                                                                                                Borung          Mitiamo
                                                                                                                                Charlton
                                                                                                                                                                               Rochester
                                                                                                                   ld                                                                                                     St James
                                                                                                                                                              Tandara
                                                                                                                   Cope                                                       Elmore
                                                                                                                  anwater                                    Raywood                       Colbinabbin
                              Carpolac                                                                             utherland                         te
                                                                                                                                             Bridgewater
                                                                                                                      St Arnaud                                                 Goornong                               Dookie
                                           Goroke                      Horsham         Dooen                 Marnoo                                                                          Murchison
                                                                                                                                                                    g




                                                         Natimuk                                                                                                                                  East
                                                                                                                                                                r on
                                                                                                                                                             Ma




                                                                                                          Glenorchy                  Dunolly
                                                                       Noradjuha
                           r
                         Naracoorte                                                                                                                             Moolort

                                                                                                                                                                                                               Southern
                                                                                               Willaura
                                                                                                                                             Ballarat
                                                                                                                                                                                                               Division
                                                         Hamilton
                                                                                                                                  Skipton
                                                                                                                      Westmere                               Sunshine
                                                                                                                                                                                Melbourne
                                                                                                                                     Berrybank

                                                                                                                                                Geelong
                                                Portland
Our Storage Network
GrainCorp’s acquisition of Allied Mills has added a truly national character
to the existing unrivalled network of physical grain handling assets.




Allied Mills National Business




                                                                                    F   Rockhampton



                                                                                        F    Toowoomba              Brisbane
                                                                                                S Dalby             Tennyson      F

      F   Flour Milling                                                                      F   Tamworth
                                                                          Adelaide
      M   Maize Milling             North Fremantle                       Mile End F
      R   Rice Milling               F                                                                          Sydney
                                                                                                 Albury         Summer Hill   F
      S   Soya Milling
                                                                     R   Bridgewater               M
                                                                                                                Kingsgrove
          Industrial Mixing                                                F Ballarat
                                                                                             Melbourne
          Industrial & Retail Mixing
                                                                                             Kensington     F
          Packing




                                                                                                                    QLD
                                                  Northern Division




                                                      NSW
                                                  Western Division




                                                      Central Division




                                                                                                                                      Seaboard Terminal

                                                                                            Southern Division                         Service Centre
                                                                                                                                      Storage Site



                                                                                        VIC                                           Sub Terminal
                                                                                                                                      Service Centre & Sub Terminal

                                                                                                                                      Broad Gauge
                                                                                                                                      Standard Gauge

                                                                                                                                      Dual Gauge

                                                                                                                                      Narrow Guage
Portland Terminal handles products such as wheat, barley, legumes, oilseeds and woodchips.




6    GrainCorp Annual Report 2002
Chairman’s & Managing Director’s Report




Ron Greentree               Tom Keene
Chairman                    Managing Director




The past year has been an exciting one for GrainCorp                The 2001/02 receival figure of over 12 million tonnes
with significant growth in both core operations and                 underpinned an excellent export performance of 6.8 million
related functions along the supply chain.                           tonnes. This allowed us to confirm an after tax full year profit
                                                                    of $48.6 million. We were pleased to announce a second half
All of GrainCorp’s activity has been focussed on continuing         dividend of 44 cents per share which brought the full year
to mould the Company into a modern, seamless and                    figure to a fully franked 78 cents per share. All shareholders
integrated operation. This strategy has involved an                 have been offered the opportunity to participate in the
acquisition in milling and activity in rail, partnerships in port   Company’s re-activated Dividend Re-investment Plan.
operations, capital investment and geographic expansion
into new grain growing areas. Since the last annual report
                                                                    Allied Mills - diversification and strength
GrainCorp has:
                                                                    GrainCorp entered the milling arena through the purchase of
                                                                    a 60% equity share of Allied Mills. This purchase is a key
• Purchased the milling assets of Goodman Fielder in
                                                                    plank in GrainCorp’s strategy of increasing diversification,
  partnership with Cargill Australia - now known as
                                                                    and enhancing activity along the supply chain.
  ‘Allied Mills’.

                                                                    It resulted from a rigorous assessment of growth
• Created Bulk Terminals Australia (BTA) in partnership with
                                                                    opportunities aimed at increasing and diversifying our
  Grainco Australia as a joint venture for the operation of
                                                                    earnings base. Allied Mills also presents a unique
  port facilities in Queensland and New South Wales.
                                                                    opportunity for GrainCorp to enter into the flour milling
                                                                    sector as a major player. The investment in Allied Mills
• Leased two engines and 40 rail wagons to transport grain          will be earnings per share positive, and will strengthen
  and bulk goods from country receival centres to our port          GrainCorp’s performance by helping to even out seasonal
  facilities in Victoria.                                           variations in future years.


• Continued to make strategic investments in capital to             Allied Mills is a national milling company with the largest
  ensure a modern and efficient delivery of services, bringing      single share of the milling market and an impressive list of
  capital investment to nearly $300 million since 1996.             customers. It can also look forward to a long-term supply
                                                                    arrangement with Goodman Fielder Ltd for its Baking and
• Expanded our grain handling operations into South                 Consumer Foods divisions.
  Australia with the opening of a grain receival facility at
  Naracoorte.




                                                                                                    GrainCorp Annual Report 2002     7
Our partner in the joint venture, Cargill Australia, brings a     Capital investment will continue where an appropriate rate of
wealth of experience in milling operations. Allied Mills builds   return can be demonstrated. While competition and capacity
on our existing relationship with Cargill Australia in the        is increasing, so too is the overall market as Australian
operation of grain receival centres at Red Bend and Henty         growers become more productive in yields per hectare and
in New South Wales.                                               the steady increase in hectares planted year on year
                                                                  continues.

Rail - integration opportunity
The lease of two locomotives and 40 rail wagons heralds           Expansion of Receival Network - extending our reach
GrainCorp’s entry into another segment of the grain supply        This year GrainCorp expanded its receival network into
chain.                                                            South Australia with the opening of the facility at Naracoorte.
                                                                  The receival centre is strategically located to make use of a
Transport, particularly by rail, is a critical component of       least-cost path to haul grain to GrainCorp’s terminal at
our operations. This expansion is designed to offer a             Portland in Victoria. Geographic expansion of operations
competitive, seamless service to customers from grain             will assist in managing seasonal variations and increase
accumulation right through to delivery at port.                   receivals overall.


GrainCorp took delivery of the train on 1 November 2002           In addition, our Service Centres provide a year round
which is destined for hauling grain from western Victoria to      relationship with customers and reinforce our presence during
our Victorian ports and for the domestic market. This initial     harvest. They sell fertiliser, seed, chemicals and provide
move into rail will provide a solid platform for future           information on GrainCorp storage and handling services.
expansion.

                                                                  2002/03 - looking forward
Bulk Terminals Australia (BTA) - a bigger footprint in            Droughts are a regular part of life in the agricultural sector
Queensland                                                        and have historically been followed by very good harvests.
GrainCorp’s access to port facilities now extends into            The current dry conditions have had an undeniable impact
Queensland in the form of Bulk Terminals Australia (BTA).         on everyone involved in the grains industry. With receivals
BTA is a joint venture partnership with Grainco Australia and     forecast to be well down on last year, this will clearly have
commenced operations from 1 November 2002. BTA will               an impact on GrainCorp’s business.
operate Grainco Australia’s existing port facilities in
Brisbane, at Fisherman Islands and Pinkenba, together with        However, the Company enjoys good fundamentals, solid
GrainCorp’s facilities at Carrington and Kooragang Island in      assets and a strong brand presence in the marketplace.
Newcastle under a long term licence agreement.                    Variable costs will be adjusted to reflect the needs of the
                                                                  season.
BTA provides both organisations with the ability to cooperate
to build better services at both ports. This will include
                                                                  Financial Summary                       2002         2001
sharing of knowledge, skills and intellectual property, as
                                                                                                         $’000         $’000
well as the ability to manage capital more efficiently and
                                                                  Storage and handling revenue         275,856      264,564
save costs. The partnership represents a ‘common-sense’
utilisation of existing port capacity and capital and will        Marketing revenue                    424,150      254,713
generate cost savings which improve competitiveness               Total revenue                        700,006      519,277
and can be passed back to customers.                              EBITDA                               119,771      115,005
                                                                  Borrowing costs                       10,888        11,884
Capital Investment - targeted growth                              Depreciation and amortisation         41,091        38,933
GrainCorp has invested nearly $300 million over the past six      Net profit before tax                 67,792        64,188
years to grow and rejuvenate our physical assets in strategic
                                                                  Tax                                   19,189        19,627
areas. Investment has been highly selective and targeted
                                                                  Net profit after tax                  48,603        44,561
towards ensuring that GrainCorp strengthens its competitive
position by delivering a modern and efficient service.            Earnings per share                      121.2        109.4
                                                                  Dividend per share                         78           72




8   GrainCorp Annual Report 2002
Newcastle Terminal handles products such as wheat, barley, sorghum, chickpeas and cottonseed.




GrainCorp’s strategy of supply chain and geographic                        GrainCorp is well placed to build on these strengths over the
diversification provides a solid foundation for ongoing                    next twelve months.
growth and future profitability.
                                                                           We would like to thank our staff once again for their
GrainCorp will focus on long term sustainable averages                     exceptional contribution in an active and exciting year for
and will continue to build on the successful strategy of                   GrainCorp.
expansion and diversification.
                                                                           While the 2002/03 harvest is a lean one for everyone in the
At GrainCorp we recognise that our staff are our key asset.                grains industry, GrainCorp can look forward to emerging as
The Company operates with a focus on developing their                      a stronger and more focussed operation.
skills and providing opportunities for advancement within
the Company where possible. We have maintained our                         Our expansion both geographically and along the supply
commitment to retaining the skills in our permanent staff                  chain, combined with the dynamic state of our industry,
despite the reduced harvest.                                               promises to vault GrainCorp into a new era of growth in the
                                                                           coming years.
In the past twelve months we have expanded our network of
grain merchants and continued to modernise and streamline
our corporate structure - importantly, we launched a joint
venture with Cargill that sees our grain accumulation teams
working together to buy grain for GrainCorp, Cargill Australia             Ron Greentree                       Tom Keene
and Allied Mills.                                                          Chairman                            Managing Director



                                                                                                          GrainCorp Annual Report 2002   9
Moree has received a record of 18,000 tonnes in a 24 hour period.




10   GrainCorp Annual Report 2002
Investor Information


GrainCorp’s structure is based on public ownership and                       Share Structure
grower control. Grower control is maintained through a
Foundation Share that confers defined voting rights and is                                                         Grain Growers              Public
                                                                                                                    Association            Shareholders
held by Grain Growers Association Limited. The status of




                                                                                                                                                                     31.8m Ordinary Shares
                                                                               8.3m Ordinary Shares
the Foundation Share is reviewed every five years when all
shareholders are entitled to vote. The next review is at the
2003 Annual General Meeting of GrainCorp.                                                                                     GrainCorp

                                                                                                                           1 Foundation Share
In 2002 the company undertook a buy back of shares with
a view to optimising the company’s debt/equity mix and                                                                        40.1 million
enhancing shareholder value. In total 291,434 shares were                                                                   Ordinary Shares
purchased in the buy-back, leaving around 40.1 million
ordinary shares on issue.


The company also re-activated its Dividend Re-investment
Plan (DRP) and all shareholders were invited to participate.
The DRP represents an opportunity to retain capital in the
company and allows shareholders to acquire more shares
without incurring the usual associated costs.




  Share Information                                                                                        Earnings per Share
                                                                                           200
  High share price                                     $13.75
  Low share price                                       $9.70
                                                                                           150
                                                                 Cents per Share




  Closing share price at 30.09.02                       $9.77
  Market capitalisation at 30.09.02             $391.5 million
  Interim dividend (fully franked)                   34 cents                              100
  Interim dividends paid                         $13.7 million
  Final dividend (fully franked)                     44 cents
                                                                                                      50
  Final dividends paid                           $17.6 million
  Basic earnings per ordinary share                     $1.21
  Return on equity (as at balance sheet date)            17%                                           0
                                                                                                           95/96   96/97   97/98   98/99     99/00   00/01   01/02
  Increase in shareholders’ funds                         5%
  Shareholder equity                                $287.3m
  Assets                                            $569.1m
  Debt                                              $187.6m




                                                                                                                                   GrainCorp Annual Report 2002                     11
Financial Performance
Five Year Financial History

                                                                       2002    2001    2000    1999    1998

Tonnages
Receivals                                                       (m)     12.0    12.1     8.3     6.7     5.4

Export                                                          (m)      6.8     7.2     4.7     3.7     3.7

Revenue
Storage & handling revenue                                     ($m)    265.8   253.9   166.9   121.1   117.4

Marketing revenue                                              ($m)    422.5   253.3   118.1   134.1    53.2

Other revenue                                                  ($m)     11.7    12.1    16.3     9.5    10.0

Total operating revenue                                        ($m)    700.0   519.3   301.2   264.6   180.6

Earnings
Profit from ordinary activities before
interest, tax and significant items                            ($m)     78.7    76.1    71.6    42.2    37.7

Profit from ordinary activities after
tax and before significant items                               ($m)     48.6    44.6    48.7    29.8    27.9

Significant items after tax                                    ($m)      -       -       -       -       7.3

Profit from ordinary activities after
tax and significant items                                      ($m)     48.6    44.6    48.7    29.8    35.2

Earnings per Ordinary Share *                                (cents)   121.2   109.4   155.6    95.2   112.7

Dividends
Fully franked dividend per Ordinary Share #                  (cents)    78.0    72.0    79.0    47.6    56.3

Other Information
Number of Ordinary Shares #                                     (m)     40.1    40.2    31.3    31.3    31.2

Ordinary capital                                               ($m)     96.5    99.5    57.7    57.7    57.7

Shareholders’ funds                                            ($m)    287.3   273.3   201.0   177.0   161.7

Return on shareholders’ funds
as at balance date                                              (%)     16.9    16.3    24.2    16.8    21.8

Total assets                                                   ($m)    569.1   532.8   335.1   255.1   224.8

Net tangible assets per Ordinary Share                           ($)     7.0     6.6     6.4     5.7     5.2

Total interest bearing borrowings
less cash on hand/
Total shareholders’ funds (debt to equity)                      (%)     65.3    66.0    36.3    22.7     4.1

Total liabilities/Total tangible assets                         (%)     50.2    49.6    40.2    30.6    28.1

Current assets/Current liabilities                              (%)    106.5    98.5   113.4    83.1    93.5

Notes
*Basic earnings per share
#Adjusted for 3 for 5 bonus issue and 10 for 1 share split




12    GrainCorp Annual Report 2002
                 15     Receivals & Exports                                                       150    Operating Cash Flow
                          Receivals                                                                        Dividends Paid
                          Export                                                                           Borrowing Costs
                 12                                                                               120
                                                                                                           Capital Expenditure
Million Tonnes




                                                                                                           Cash from Operations




                                                                                     $ Millions
                 9                                                                                 90


                 6                                                                                 60


                 3                                                                                 30


                 0                                                                                  0
                        1998        1999     2000      2001       2002                                    1998       1999        2000      2001        2002


                      Receival tonnes have increased by 122% over                                       Operating cashflow has increased by 40%
                      the past five years. Exports tonnes have                                          from $65.4 million to $91.3 million over the
                      increased by 84% over the same period.                                            past five years. Significant surplus cashflow
                                                                                                        available for servicing debt, rewarding
                                                                                                        shareholders and continued infrastructure
                                                                                                        and other investment activities.




                        EBITDA & PAT                                                                     Assets, Equity & Debt
            120                                                                               600
                           EBITDA                                                                           Total Assets
            100
                           PAT                                                                500
                                                                                                            Shareholders' Equity
                                                                                                            Total Debt
                 80                                                                           400
 $ Millions




                                                                                $ Millions




                 60                                                                           300


                 40                                                                           200


                 20                                                                           100


                  0                                                                                0
                           1998       1999      2000      2001      2002                                   1998      1999          2000    2001        2002


                      EBITDA has increased 113% from $58.7 million to                                   Shareholders’ equity increased from $161.7 million
                      $119.8 million over the past five years. Profit margins                           to $287.3 million over the past five years. Net debt
                      per tonne of grain handled have been maintained.                                  to equity at a moderate 65%.




                                                                                                                             GrainCorp Annual Report 2002     13
 Key Business Areas

                       Storage & Handling                                     Grain Marketing

Goals                  • To operate a competitive storage and handling        • To secure grain ownership and capture value
                         network                                                throughout the supply chain




Strategies             • Optimise the silo network through targeted capital   • To provide a highly efficient supply chain for both
                         investment                                             domestic and export clients

                       • Maintain low operating base                          • Develop and implement risk management
                                                                                strategies for producer and end clients
                       • Seek opportunities for further integration of
                         accumulation, storage and transport                  • Generate leverage for other services provided
                                                                                by GrainCorp
                       • Host an open market place at GrainCorp silos
                         to add value for customers




Achievements           • 12 million tonnes of grain received with increased   • Increased profit
                         efficiency
                                                                              • Improved trading margins
                       • 6.8 million tonnes exported through GrainCorp
                                                                              • Trading turnover continues to grow
                         terminals
                                                                              • New marketing alternatives launched
                       • Maintained low cost base with 9 million tonnes
                         of permanent storage                                 • Popularity of GrainCorp Pools resulted
                                                                                in record volumes and revenue
                       • Capital works program lifted efficiency and
                         capacity                                             • Completed the export of several bulk export
                                                                                shipments
                       • Over 1 million tonnes of grain moved on
                         GrainCorp operated trains                            • Strengthened GrainCorp presence in Western
                                                                                Australia

                                                                              • Managed Marketing Program (MMP) developed
                                                                                and added to range of contracting options
                                                                                available to grain growers




Outlook                • Greater efficiencies generated with integration of   • Seasonal conditions will result in lower trading
                         supply chain activities                                turnover

                       • Continued targeted capital investment at key sites   • Volatility in domestic and export markets resulting
                                                                                from drought (in Australia and North America)
                       • Improved customer service through additional
                          segregations, sealing, elevator speed and out-      • Continued development of the supply chain to
                          loading efficiency                                    domestic and export clients

                       • Increased handling of non-grain bulk commodities     • Develop further contracting alternatives better
                                                                                able to accommodate seasonal variability




 14     GrainCorp Annual Report 2002
Merchandising                                          Transport

• To supply a range of products and services to        • To operate competitive transport, specifically rail                       Goals
  grain producers to enhance mutual benefit              service, using State open access arrangements
  throughout the production cycle                        to add value throughout the grain supply chain
                                                         to the benefit of growers and shareholders




• Provide a clearly defined range of production        • Demonstrate a rail commitment to grain haulage                   Strategies
  input solutions to producer customers                  over branch and main line networks

• Linkage of core business activities of grain         • Provide greater reliability and customer service
  accumulation and handling                              to growers and end user customers as a fully
                                                         accredited rail operator

                                                       • Develop a consistent and reliable approach to rail
                                                         safety, scheduling, handling and on time delivery
                                                         of grain

                                                       • Seek freight rate opportunities at GrainCorp sites



• Promotion of service culture across the Company      • Achieved rail accreditation in New South Wales,              Achievements
                                                         Victoria, South Australia and Queensland
• Centres opened in West Wyalong and Coonamble
                                                       • Introduction of a single grain train to facilitate
• Continued to expand whole business - seasonal
                                                          grain supply chain efficiencies in three states
  finance, seed, fertilisers, agricultural-chemicals
                                                       • Demonstrated rail safety performance to the
• Promotion of GrainCorp farming inputs through
                                                         Australian rail standards
  branded fertiliser
                                                       • Provided a total logistics package from farm to
• Continued growth of core products in seed and
                                                         export terminals and local user customers
  fertiliser




• Service Centres will underpin GrainCorp’s year-      • Further develop rail service opportunities to                       Outlook
  round business relationship with producers             growers and end users in the deregulated grain
                                                         markets of New South Wales and Victoria
• Continue to build product and service base
                                                       • Encourage increased rail competition to force
• Continued expansion of Service Centre network
                                                         further efficiencies in the grain supply chain

                                                       • Ensure continued strategic investment in rail to
                                                         support branch line operations




                                                                                                    GrainCorp Annual Report 2002    15
Review of Operations


Storage and Handling                                            Expenditure of over $40 million in upgrading facilities
Storage and handling remains the core business for              GrainCorp continues to improve its storage facilities to
GrainCorp. Our unmatched physical assets and expansive          provide better service to both grower and end user
network continue to provide a strong competitive advantage.     customers. Over $40 million has been spent across the
GrainCorp has invested nearly $300 million in strategically     network to ensure site turn around times remain competitive
important areas over the past six years to ensure our assets    for the in-loading of grain from growers and the out-loading
provide a modern and efficient service.                         of grain to end users via rail.



Highlights                                                      Naracoorte Grain Receival Facility opened
                                                                The facility, which boasts four 20,000 tonne bunkers at an
12 million tonne receival and 6.8 million tonne
                                                                investment of $3.35 million, opened for operation in the
export figure
                                                                2002/2003 harvest. Efficiencies will be captured by the site
A 12 million tonne receival figure from last harvest resulted
                                                                through the transport of grain, via the least cost path, from
in exports of 6.8 million tonnes of grain which underpinned
                                                                Naracoorte to GrainCorp’s Port of Portland Terminal in Victoria.
GrainCorp’s performance. GrainCorp’s network of
                                                                This adds to the strategy of geographic expansion designed to
permanent grain storage facilities which can conduct
                                                                minimise exposure to unfavourable weather patterns.
outloading in all weather types assisted in ensuring export
schedules were met.
                                                                Kooragang Agri-Food Terminal
                                                                GrainCorp invested $10 million jointly with P&O Ports to
Port terminals
                                                                develop an integrated agri-food storage and loading facility
GrainCorp’s four seaboard terminals at Newcastle, Port
                                                                at Kooragang Island. The terminal allows agri-food products
Kembla, Geelong and Portland saw 7.9 million tonnes of
                                                                to be loaded directly from storage onto berthed vessels
throughput (including woodchips) over the past year.
                                                                delivering substantial cost savings.
This marks a drop of 0.5 million tonnes from the previous
year however shipments of rice, pulses, oats and maize
                                                                It is designed to load bulk agricultural products such as
are continuing to increase and exports of woodchips
                                                                cottonseed, cottonseed meal, peas and beans and other bulk
remains over one million tonnes per annum. Commodities
                                                                non-wheat grains. It may also be used for non-agricultural
shipped included wheat, barley, canola, sorghum, maize,
                                                                exports such as mineral sands and fertilisers. The multi-
chickpeas, lupins, beans, paddy rice, rice, legumes, peas,
                                                                purpose storage facility has a combined capacity of 30,000
lentils and woodchips.
                                                                tonnes. The facility will also handle imported agri-food
                                                                products, for example soya bean meal and palm kernel meal.
The biggest monthly shipment for all four ports combined
was in January 2002 with a total of 879,094 tonnes
(including 118,000 tonnes of woodchips).                        Bulk Terminals Australia (BTA)
                                                                BTA will operate Grainco Australia’s existing port facilities in
The average country outloading per month to export ports        Brisbane, at Fisherman Islands and Pinkenba and
was 571,000 tonnes (loaded in country onto rail). The largest   GrainCorp’s facilities in Newcastle at Carrington and
was 685,000 tonnes.                                             Kooragang Island.

                    Total for Year         Largest Shipment     The joint venture will lead to better utilisation of existing
                  Grain Woodchips
                                                                terminal capacity while avoiding duplication of capital
                    ‘000 tonnes                 Tonnes
                                                                investment. GrainCorp and Grainco Australia will continue
Newcastle          1,780        N/A             56,020          to compete for product with each other and with other
Port Kembla        2,300        N/A             70,744
                                                                companies along the supply chain.
Geelong            1,780        533             52,500
Portland             973        469             61,500



16   GrainCorp Annual Report 2002
Junee Sub Terminal services one of Australia’s prime grain growing regions with 150,200 tonnes of permanent storage and 170,000 of bunker storage.




Warehousing                                                                  E-commerce
Tonnes delivered into GrainCorp’s warehousing service have                   In an industry first, GrainCorp provided e-commerce
increased on the last reporting period. 31.9% of total                       solutions to growers for the transfer of warehoused grain to
GrainCorp receivals were warehoused in the 2000/01                           pool or contract. The service has proven popular with uptake
harvest compared with 38.8% during the 2001/02 harvest.                      stronger than predicted at approximately 2,000 registrations.
Warehousing provides growers with the opportunity to sell
their grain after carefully reviewing what can be complex
pricing structures for grain.




                                                                                                               GrainCorp Annual Report 2002    17
During the first year of full operation, Burren Junction’s Service Centre distributed 9,950 tonnes of fertiliser.




Grain Marketing                                                                     Growers can be certain that they are selling their grain to
                                                                                    someone who will be dealing with the end customer, and
GrainCorp’s trading division has expanded steadily since
                                                                                    customers know they are buying their grain from someone
its creation in 1995. Marketing of grain complements our
                                                                                    who deals directly with the grower. This direct link helps to
storage and handling business and provides further
                                                                                    ensure premium quality and cost efficiency.
competition in the marketplace. It is an important element
in the provision of an integrated suite of services for
GrainCorp’s customers.                                                              Suite of marketing products expanded
                                                                                    GrainCorp Marketing provides simple, transparent, cost
Highlights                                                                          effective and well managed Pool products.

Large volumes traded                                                                This year, the first Malt Barley Pool was offered in Victoria
Over the past 12 months GrainCorp Marketing has produced                            along with the successful completion of GrainCorp’s first
large trading volumes and further increased sales turnover.                         Pre-harvest Pool. The Marketing Division also launched a
Overseas client relationships have advanced with the                                new contracting alternative known as a Managed Marketing
completion of several export shipments.                                             Program (MMP). The MMP focuses on price management,
                                                                                    not prediction and uses tools to manage associated risk.
GrainCorp’s unmatched network provides the flexibility that
allows customers access to grain from a range of locations                          Network extended
and at a variety of grades. This network also offers a
                                                                                    Seven fully trained Grain Merchants were added to the
solutions orientated approach to growers combined with
                                                                                    GrainCorp network this year. They bring new skills and
fast and responsive service.
                                                                                    provide customer focused support to our growing client base.

One of the key benefits of GrainCorp Marketing is that
international customers are provided with a gateway to
Australian grain producers, accessing an integrated, efficient
supply chain.



18   GrainCorp Annual Report 2002
Merchandising                                                    Transport
Service centres provide year round contact with grower           Greater participation in grain transport logistics is a key
customers, promote a holistic package of GrainCorp services      element in GrainCorp’s competitive positioning. Our strategy of
and attract grain to our storage facilities. They are an         diversification and expansion will be significantly enhanced
important component in our strategy of diversification and       through the realisation of seamless integration from country
expansion designed to cement our presence in grain growing       storage to port.
areas. Volumes of products sold have continued to increase.
                                                                 Highlights

Highlights                                                       Geelong balloon loop
                                                                 A dual gauge rail loop connection to GrainCorp’s terminal at
Infrastructure
                                                                 Port of Geelong has recently been completed. This is the only
GrainCorp’s multi-million dollar investment in infrastructure    port in Victoria where this is available, offering significant
for the handling of farm inputs through the country storage      operational savings.
network allows quick supply during peak demand periods.
This network offers greater flexibility to customers, allowing   This dual gauge rail loop paves the way for a flow of grain
them to get what they demand, when they need it and              from the standardised rail networks in the western areas of
where they require it.                                           Victoria and the southern areas of NSW. GrainCorp’s end user
                                                                 and grower customers will benefit through a least cost path
                                                                 from farm to port. Efficiencies will be realised through time
‘Real time’ based accounting system                              saved in unloading trains that do not require shunting.
The implementation of a corporate resource system was
undertaken throughout the Service Centre network.                Investment in rolling stock
This system is an online ‘real time’ Service Centre based        GrainCorp has opened a new chapter in the grain supply
accounting system that allows all customers immediate            chain. On 1 November 2002, the Company took delivery of
access to account information.                                   two locomotives and 40 wagons. This dynamic expansion is
                                                                 designed to offer a competitive, improved service in hauling
                                                                 grain to port. Train crews have been hired for the operation of
Employee development
                                                                 the rolling stock.
A large number of GrainCorp employees started their
careers in the Merchandising Division and have progressed        The intended primary geographic area of operation for the
within the Company throughout various areas. This                train is in western Victoria, comprising two branch lines
demonstrates our commitment to staff and the opportunity         managed by Freight Australia and one mainline managed by
for their career development.                                    the Australian Rail Transport Corporation.


                                                                 Accredited rail operator
SunPrime Seeds
                                                                 In the past 12 months GrainCorp received rail operator
GrainCorp is continuing its joint investment with the Grains
                                                                 accreditation in the States of South Australia, Victoria, New
Research & Development Corporation and The University of
                                                                 South Wales and Queensland. Gaining this accreditation
Sydney to promote innovation through new wheat varieties
                                                                 removes an important hurdle in commencing intended rail
from SunPrime Seeds Pty Ltd.
                                                                 operations and will open opportunities to haul grain in the
                                                                 areas where larger parcels can be located. This strategy will
                                                                 auger well in a harvest where tonnes will be well down on
                                                                 historical averages.


                                                                 Road transport
                                                                 GrainCorp makes substantial use of road transport for hauling
                                                                 of grain where the use of rail is not appropriate. Services such
                                                                 as on farm pick-up have proven valuable in providing an
                                                                 added level of service to grower customers and securing their
                                                                 business. GrainCorp plans to develop road transport into a
                                                                 separate focussed operating division of the Company.




                                                                                                  GrainCorp Annual Report 2002   19
Technical Services                                                    Information Services
Quality of grain is a critical issue for end user customers and for   Information Services is focussed on providing effective and
growers. GrainCorp continues to invest in the latest and most         valued solutions to improve business practices by delivering
reliable equipment to ensure we can provide the best service          quality products and quantifiable business services.
offered in the market.

                                                                      Highlights
Highlights
                                                                      Web functionality
Operational efficiencies realised                                     Existing internal applications have been leveraged to
The Technical Services laboratories at Gilgandra and Parkes           deploy GrainCorp’s stock systems to external customers
have been integrated into the one laboratory at Parkes. This has      over the past twelve months. Through the redeployment
allowed greater utilisation of existing capital resources and has     of established technologies, projects undertaken by the
generated considerable operational efficiencies.                      Information Services Department are now being delivered
                                                                      to market faster.

Integration of quality standards
Technical Services have played a critical role in the creation of     Further integration of the corporate resource systems
national barley receival standards which now apply to deliveries      GrainCorp has integrated its Service Centres across the
in all the eastern states of Australia. The benefits of these         network into the enterprise resource planning system. This
national standards flow to both customers in export markets           means online invoicing, real time stock control and visibility
and to growers. Export customers are able to determine the true       of merchandise across the entire GrainCorp network are
quality of barley more accurately and growers can now find it         now available.
easier to discern differences in prices from which to base
marketing decisions.
                                                                      Upgrade of Port Kembla process control
                                                                      GrainCorp’s Information Services played an integral role in
Improvements in grain testing accuracy                                the research and development of a process control system
A further significant investment was made to purchase 18 Near         which integrates the stock system with the process controls
Infra Red (NIR) Whole Grain Analysers allowing coverage by this       at the Port Kembla terminal. A roll-out of this ‘turn-key’
type of equipment at almost all sites across the GrainCorp            system is planned across all terminals.
network. On-site testing of oil content and impurities in canola
has expanded to six sites in New South Wales in addition to the
                                                                      Implementation of second phase of Microsoft
100 per cent coverage already existing in Victoria.
                                                                      infrastructure
                                                                      The business has entered its second phase in the adoption
The benefits of more accurate testing are passed onto growers
                                                                      of Microsoft technologies. This phase is designed to provide
through the receipt of payments which reflect the true quality of
                                                                      improved security and ‘fail over’ capabilities for GrainCorp’s
the grain. This enables growers to make canola marketing
                                                                      central stock system. GrainCorp will benefit from an
decisions at the site based on immediate knowledge of
                                                                      improved ability to provide its customers true online services
moisture, oil and impurities.
                                                                      around the clock.


A new laboratory at Geelong Terminal
                                                                      Buyer to buyer services
A new quality testing laboratory at Geelong Terminal was
                                                                      Twelve of the key stock reports/inquiries along with buyer
completed and features automatic sample delivery of both rail
                                                                      transfers have been deployed through online services. These
and shipping samples directly into the laboratory testing area.
                                                                      services provide buyers with up to date information and
This state-of-the-art facility will ensure compliance with out-turn
                                                                      transaction capabilities. This initiative is in line with the
specifications for all customers utilising this seaboard terminal.
                                                                      strategic direction of improving efficiencies and lowering
                                                                      costs to the core business.




20   GrainCorp Annual Report 2002
The operators at Temora Sub Terminal, which has 136,100 tonnes of permanent storage, are capable of outloading in excess of 2,000 tonnes per hour.
Employee Relations                                              Occupational health and safety
Human Resources commenced a comprehensive strategy              GrainCorp maintains a comprehensive Occupational Health
that includes a continued focus on building the capabilities    and Safety system. The Company is pleased to report a
of our people to deliver on GrainCorp’s business strategy,      marked improvement in injury and illness statistics over the
more rigorous and effective performance management              past 12 months due to enhancements of existing and
processes at all levels and more effective communication        development of new innovative systems.
and consultation with staff.
                                                                Commitment to OH&S begins with the Board and Executive
                                                                OH&S committees extending to many regionally based
Highlights
                                                                committees. This ensures a fair representation of employees,
Training and development                                        contractors and management, consult to make decisions
Another 10 trainees graduated from GrainCorp’s traineeship      affecting the health and well-being of everyone at or around
program this year, all taking up positions within the           GrainCorp sites.
Company. Another 11 trainees were recruited this year and
can expect to complete their traineeship in 2004.               A commitment to training all staff in sound OH&S
                                                                procedures has ensured a greater awareness and ability
The Company has continued to provide training to its            to recognise and manage risk at the workplace.
existing Bulk Grain Workers providing nationally recognised
formal qualifications to a number of staff.                     The continued adoption of new and innovative OH&S
                                                                systems will ensure GrainCorp meets and exceeds
GrainCorp also introduced the Frontline Management              legislative and best practice standards in the future.
Initiative for line supervisors and managers in 2002.
23 supervisors and line managers will participate in the
                                                                Industrial relations
program over the next 12 months. Participants graduate
                                                                During the year, a review of industrial relations in our
from the program with a Certificate IV in Business (Frontline
                                                                operational areas commenced. The review of our seaboard
Management).
                                                                terminals has been completed and produced a number
                                                                of efficiencies. These included right–sizing of the award
                                                                workforce at Geelong and Sunshine and a reduction in
                                                                staffing levels on a number of specific functions at
                                                                Newcastle.




Supporting Our Communities

The GrainCorp Foundation has just completed its second          in 2002, via an assortment of worthwhile ventures. These
round of funding for 2002, its fourth round since its           have included such projects as the supply of new equipment
inception, with each round attracting interest from more        to the Warracknabeal Youth Drop-In Centre, the provision of
community-based projects.                                       two new Alpha helmets for Careflight and the purchase of
                                                                new play equipment for the children at the Junee Preschool.
The Foundation was established as an initiative of the
GrainCorp Board, with the mission to represent the              The GrainCorp Foundation is continuing its support of the
Company’s social responsibility to the communities in which     Loddon Murray Community Leadership Program, the
GrainCorp staff, shareholders and customers live and work.      University of New South Wales and the Country Education
                                                                Foundation, which is being implemented across regional and
Due to the provision that the GrainCorp Foundation would        rural Victoria and New South Wales.
receive 1% of GrainCorp’s after tax profits, the Foundation
was able to contribute over $480,000 to these communities




22   GrainCorp Annual Report 2002
Executive Management
The Executive and Senior Management teams are focussed on
growing business solutions for GrainCorp customers and
shareholders. Over the past year, the Executive reviewed business
performance and developed strategies that provide continued
business growth and position the Company for the future.




Tom Keene,                Joe Di Leo,              Nigel Hart,               Simon Bird,                Neil Johns,
Managing Director         Chief Operating          Corporate Services        Chief Financial Officer    Business
                          Officer                  Manager & Company                                    Development
                                                   Secretary                                            Manager




Sam Tainsh               Andy Single,              Kevin Lloyd,               David Titterton,          Murray Wilkinson,           Jack Tansley,
Trading Manager          Merchandise Manager       Northern Division          Western Division          Central Division            Southern Division
                                                   Manager                    Manager                   Manager                     Manager




The GrainCorp Foundation donated $50,000 to Telstra Childflight which transports critically ill children from rural areas.




                                                                                                                           GrainCorp Annual Report 2002   23
Board of Directors
The GrainCorp Board of 11 Directors is made up of six Grain
Growers Association Directors (one of whom must be the
Chairman of GrainCorp), four Directors elected by ordinary
shareholders and the Managing Director.




                               Ron Greentree     Allan McCallum    Tom Keene            Graham Barron        Nick Burton Taylor
                               Chairman          Deputy Chairman   Managing Director




R.L. (Ron) Greentree (Chairman)                                    W.G. (Graham) Barron
Grower from Merrywinebone, NSW. Principal                          Grower from Ungarie, NSW. Chairman of the Risk
of an agricultural machinery business and Director of              Management Committee and member of the Capital
BRI Australia Ltd. Chairman of Vicgrain Limited and                Works Committee.
Victorian Grain Services Limited. Chairman of the
Remuneration and member of the Capital Works
                                                                   N. (Nick) Burton Taylor AM B.Ec, ASIA, FCA, FAICD
and Equity Committees.
                                                                   Grower from Boorowa, NSW. Principal Hillgrove Pastoral
                                                                   Company. Director of Rural Press Limited, Bankstown
A.D. (Allan) McCallum (Deputy Chairman) Dip Ag.Sc                  Airport Limited, Heggies Bulk Haul Limited and The
Grower from Kerang, Victoria. Director of Vicgrain Limited         Australian Agricultural Company Limited. Member Public
and Victorian Grain Services Limited. Deputy Chairman of           Transport Union (Loco Division). Chairman of the Audit
Pivot Limited, Chairman of Nugrain Pty Limited, Chairman of        Committee, the GrainCorp Foundation and member of the
Farm Horizons Limited and President of Australian Oilseeds         Remuneration Committee.
Federation. Chairman of the Capital Works and Occupational
Health, Safety and Environment Committees.


T.B. (Tom) Keene (Managing Director) B.Ec, MAICD
Managing Director of GrainCorp Group and member
of the Risk Management Committee. Chairman of Allied
Mills Australia Pty Limited.




24   GrainCorp Annual Report 2002
Ross Flanery          Rick Freeman        David Groves        Donald              Julian Menegazzo      David Trebeck
                                                              McGauchie




R.R. (Ross) Flanery                                               D.G. (Donald) McGauchie
Grower from Harden, NSW. Commercial interests in forestry         Grower from Prairie, Victoria. Director of Reserve Bank of
and hydro-electric power. Chairman of the Equity Committee        Australia, Director of Telstra Corporation Limited, Ridley
and member of the Capital Works Committee.                        Corporation Limited, National Foods Limited and Deputy
                                                                  Chairman of Australian Wool Testing Authority Limited.
                                                                  Member of the Equity and Remuneration Committees.
R.G. (Rick) Freeman
Grower from Edgeroi, NSW. Company principal of
Norseman Machinery Imports Pty Limited. Member of                 J.A. (Julian) Menegazzo B.Sc
the Capital Works Committee. Director of GrainCorp                Grower from Balliang, Victoria. Active in horticulture
Superannuation Pty Limited.                                       marketing business. Member of the Audit Committee and
                                                                  GrainCorp Foundation.

D. (David) Groves B.Com, M.Com, CA
Chartered Accountant and Company Director. Director of            D.B. (David) Trebeck B.Sc.Agr (Hons), M.Ec.
Masling Industries Pty Limited and Equity Trustees Limited.       Consultant, Grower and Company Director from Canberra,
Active in the management of companies involved in                 ACT. Executive Chairman of ACII Tasman Pty Limited.
viticulture and investment. Member of the Equity, Risk            Director of Incitec Limited, National Grazing Services Pty
Management and Remuneration Committees.                           Limited. Member of the Audit Committee and Occupational
                                                                  Health, Safety and Environment Committees.




                                                                                                 GrainCorp Annual Report 2002   25
Corporate Governance Statement


This statement outlines the principal corporate governance       Non-executive directors comprise up to six “group”
practices that were followed by the company throughout the       directors, whom are all the directors of Grain Growers
2001/2002 financial year.                                        Association Limited (“GGA”) and up to four “elected”
                                                                 directors whom are subject to re-election by rotation at the
                                                                 Company’s annual general meeting. Group directors must be
Role of Shareholders
                                                                 members of GGA and there must be two directors appointed
The shareholders of GrainCorp Limited play an important          from each of three geographical zones across New South
role in corporate governance by virtue of their responsibility   Wales/Victoria. In subsequent years, Group directors are
for voting for the appointment of Directors. The Foundation      subject to re-election by rotation at GGA’s annual general
shareholder, Grain Growers Association Limited, who              meetings. The Chairman is elected by the group directors.
represents 14,000 grain growers is consulted on a                Details of experience and qualifications are set out on page
regular basis on the strategic direction and performance         35 of this annual report. The performance of each non-
of the Company.                                                  executive director is reviewed by the Chairman, The
                                                                 Chairman’s performance is reviewed by the full Board. An
The Board ensures that shareholders are kept fully informed      independent external consultant is retained to assist the
on developments affecting the company through:                   Chairman and Directors in this review process.


• The annual and interim results which are released through      The Managing Director automatically relinquishes his
  reports, newsletters and presentations;                        position on the Board in the event that his executive position
                                                                 with the Company ceases.
• Compliance with Australian Stock Exchange’s continuous
  disclosure listing rules;
                                                                 The Work of Directors
                                                                 In addition to the preparation for and attendance at Board
• The annual general meeting and other meetings called to
                                                                 and committee meetings, non-executive directors visit
  obtain approval for board action.
                                                                 operational sites and are involved in local and national
                                                                 industry matters. Business planning meetings, attendance
Board of Directors                                               at conferences and other industry occasions also require
                                                                 involvement of directors.
The GrainCorp Board is accountable to shareholders for the
business and affairs of the group and it sets the framework
for the Company’s long term success. It approves the             The Board reviews the objectives and performance of

Company’s goals, direction, long term strategic plans and        GrainCorp Group alliances and joint ventures. The Board
                                                                 considers it appropriate that for good corporate governance
provides overall policy guidance. The Board ensures that
                                                                 practice non-executive directors will not sit on joint venture
appropriate policies and procedures for the management of
                                                                 or alliance Boards.
business and financial risks and associated internal controls
are in place and monitors environmental and safety
performance. It also monitors compliance with laws and           Directors have access to the Company’s solicitors and
ethical behaviour.                                               auditors at the Company’s expense should they wish to
                                                                 seek advice on matters relating to their duties as directors
                                                                 of the Company, after first notifying the Board or Chairman
Size and Composition of the Board                                of the Board.
There are currently 11 directors on the Board -
10 non-executive directors, including the Chairman,              Each Director is covered by relevant company insurance
and one executive director, being the Managing Director.         policies and enters into a Deed of Indemnity with the Group.




26   GrainCorp Annual Report 2002
Condobolin is one of the biggest receival sites in NSW with a storage capacity of approximately 348,000 tonnes.




                                                                                                                  GrainCorp Annual Report 2002   27
Emoluments of Board Members                                      business and reports to the Board on any material item.
The Board recommends to shareholders, from time to time,         It develops audit policy and monitors audit functions within
a quantum of total directors fees. Non-executive annual          the companies. The BAC has, during the year, reviewed and
Directors Fees are established based on independent advice.      approved an Internal Business Audit Plan incorporating a
With the exception of the Chairman and Deputy Chairman,          comprehensive business review process in respect of
additional yearly fees are paid to directors who are members     internal audit management functions. The committee will
of committees. The Annual General Meeting of shareholders        also review any material changes in accounting policy.
in 2001 approved a total non-executive director remuneration     The Committee reports to the Board after each meeting.
pool of up to $1million annually for a three year period.
                                                                 Management, internal and external auditors are invited to
In addition to reimbursement of expenses, any allowance          attend BAC meetings to ensure that adequate controls and
paid to directors is in line with rates prescribed for members   practices are maintained throughout the Group. The BAC
of the Senior Executive Service, Australian Public Service.      reviews progress in and reports arising from the Internal
Details of current remuneration and meeting attendance can       Business Audit Plan as well as specific issues or matters
be found on pages 36 and 38.                                     which may arise from the internal and external audit
                                                                 process. The external auditors will have direct access on a
                                                                 regular basis to the BAC without management involvement.
Retiring non-executive Directors are entitled to an allowance
up to a maximum of their last three years remuneration after
nine years service (pro-rata for a lesser period with a          In addition it has oversight of financial investments.
minimum of three years).                                         GrainCorp seeks to minimise the risk that arises through
                                                                 the Company’s activities in financial risk management.

Board and Committee Agendas
                                                                 External auditors are appointed for a term of three years
The Chairman and Managing Director establish the agendas         and are not automatically reinstated. The committee plays
for Board meetings, although directors have the right to add     an active role in reviewing the adequacy of the existing
items for directors’ consideration. Each committee chairman      arrangements, and is responsible for ensuring that the
decides the length and frequency of committee meetings in        auditors have the necessary qualifications and skills and
consultation with committee members and consults with            that the scope and quality of their audit is appropriate.
management on preparation of agendas. Senior executives          The committee makes recommendations to the Board in
attend Board and committee meetings when relevant                relation to the appointment of external auditors. An Auditor
matters are under consideration. Committee chairmen report       Independence Policy has been adopted which sets out
the work of their committee to the Board on a regular basis.     the key principles to be followed by the Audit firm in its
                                                                 relationship with the Company. The BAC will conduct a
                                                                 formal assessment of external auditor performance each
Board Committees
                                                                 year and report the outcome to the Board.
The Board has established seven committees to increase its
efficiency and effectiveness. Each committee has a formal
                                                                 The Committee reviews disclosure practices of the Company
charter approved by the Board.
                                                                 to shareholders and relevant external agencies.

Board Audit Committee (BAC)
                                                                 Risk Management Committee
The BAC Committee comprises three non-executive
                                                                 The Company’s Risk Management Committee (“RMC”)
directors. Meetings are held at least four times a year.
                                                                 specifically develops and oversees policy for all risk
The committee ensures that the financial statements are
                                                                 associated with grain marketing, merchandising and other
prepared in accordance with appropriate standards and
                                                                 areas of operations. The policies specify trading limits,
statutory requirements and reviews all matters raised by
                                                                 approved risk management tools, credit management and
the internal and external auditors, risks associated with the




28   GrainCorp Annual Report 2002
delegations for authorising transactions and segregation of      The committee sets, reviews and monitors policy on all staff
duties. The committee comprises two non-executive                remuneration and other conditions of employment. The
directors, the Managing Director, the Chief Operating Officer    committee monitors a management succession plan.
and one external appointment.

                                                                 Occupational Health, Safety and Environment
Equity Committee                                                 Committee
The Equity Committee comprises four non-executive                The OHS and E Committee is comprised of one non-
directors and is responsible for recommending to the Board       executive Director, Chief Operating Officer, Company
matters pertaining to shareholders’ interest and the capital     Secretary and Risk and Safety Manager. The principal role
structure of the company.                                        of the Committee is to review and recommend to the Board
                                                                 proactive strategies for providing a safe and healthy
                                                                 workplace for all employees, growers, customers,
Capital Works Review Committee
                                                                 contractors and local communities.
The Capital Works Review Committee consists of four non-
executive directors and the Chief Operating Officer. The
                                                                 A monthly reporting system for compliance and
purpose of this committee is to review strategic operational
                                                                 performance against agreed performance objectives is
issues, including utilisation of storage, future requirements,
                                                                 reviewed by the Board.
harvest performance, service standards and overview of
capital expenditure. The committee recommends to the
Board policy on disposal, leasing and the Company’s long         Foundation Committee
term operational needs.                                          The Foundation committee will comprise seven members
                                                                 two of whom will be non-executive directors, one employee
                                                                 and four community representatives (selected by the
Remuneration and Appointments Committee
                                                                 GrainCorp Board).
The Remuneration and Appointments Committee comprises
four non-executive directors. The principal role of the
                                                                 The aim of the GrainCorp Foundation is to represent the
committee is to maintain a remuneration policy which
                                                                 Company’s social responsibility to the communities -
ensures the remuneration package of senior executives
                                                                 particularly rural and regional - in which GrainCorp staff,
properly reflects their duties and responsibilities.
                                                                 shareholders and customers live and work.
This includes ensuring that remuneration is competitive
in attracting, retaining and motivating people of the
highest quality and aligns the interests of senior               The GrainCorp Foundation seeks to create and support
management with shareholders.                                    opportunities that build on the initiative and potential of rural
                                                                 people in developing and growing communities in which
                                                                 GrainCorp operates. GrainCorp allocate 1% of after tax
The committee reviews and recommends to the Board, after
                                                                 profits annually to sponsorship activities. The primary
reference to performance and published remuneration
                                                                 objective is to provide financial support, in an objective and
surveys and market information, the remuneration of the
                                                                 programmed fashion, to the rural communities in which
Managing Director and other senior executives.
                                                                 GrainCorp is based.

The committee also reviews the non-executive directors’
remuneration arrangements and details are then submitted
to the Board for their review and subsequently to a general
meeting of GrainCorp Limited for approval by shareholders.
In determining the level of fees, survey data on fees paid by
comparable companies is considered together with changes
in the level of responsibilities.




                                                                                                 GrainCorp Annual Report 2002   29
Policies and Procedures                                          Ethical Standards
                                                                 All directors and employees are expected to act with the
Health and Safety
                                                                 utmost integrity and objectivity, striving at all times to
GrainCorp is committed to ensuring compliance with               enhance the reputation and performance of the Company.
relevant health, safety and environmental legislation. The       The Company has implemented a Code of Conduct
Board requires a best practice approach in these areas and       and Diversity and Equity Policy for all directors and
has implemented appropriate management objectives and            employees. Membership of appropriate professional
structures and a regular reporting process to ensure that this   bodies is encouraged.
objective is achieved. GrainCorp’s health, safety and
environmental policies are under continuous review and are
updated when required. In general terms, GrainCorp’s             Continuous Disclosure
policies are designed to eliminate injury to people and to       As a guiding principal GrainCorp must ensure it does not
minimise loss or damage to product stored and handled            communicate material price or value sensitive information
on behalf of customers.                                          to an external party except where that information has
                                                                 previously been disclosed to the market generally. The
                                                                 Company has adopted a continuous disclosure policy
Trading of GrainCorp Shares
                                                                 and financial markets communication policy to ensure
The following policy applies for the trading of GrainCorp        compliance with disclosure obligations.
shares by directors and employees.


That buying or selling of GrainCorp Limited shares by
                                                                 Related Party Transactions
directors, officers, all staff agreement employees,              Transactions by directors for storage, handling, testing,
contractors located at any of the company’s offices, users of    seed, sales and purchases of grain are undertaken on terms
the general ledger financial systems and related parties, who    no more favourable than available to other customers and
are aware of price sensitive information not available to the    apart from standard business transactions are reviewed
market, be restricted to the following time periods:             and approved by the Chairman of the Audit Committee
                                                                 in accordance with the corporate governance policy
                                                                 of the Company.
(i) Six weeks commencing 48 hours from the date of
     lodgement of the half yearly accounts of GrainCorp
     Limited with ASIC and the ASX.


(ii) Six weeks commencing 48 hours from the date of
     lodgement of the preliminary final report of GrainCorp
     Limited with the ASX.


(iii) Four weeks commencing 48 hours from the date of the
     Annual General Meeting of the Company.


These trading windows are open subject to an individual not
being in possession of market-sensitive information.


Each Director has entered into an agreement “Director and
disclosure of interests and transactions in Securities” with
GrainCorp Limited in accordance with ASX Listing Rules.




30    GrainCorp Annual Report 2002
2002 Concise Report
for the year ended 30 September 2002                         GrainCorp Limited (ABN 60 057 186 035) and Controlled Entities



        Contents
        Directors’ Report                                     32

        Consolidated Statement of Financial Performance       40

        Discussion & Analysis of
           Consolidated Statement of Financial Performance    41

        Consolidated Statement of Financial Position          42

        Discussion & Analysis of
           Consolidated Statement of Financial Position       43

        Consolidated Statement of Cash Flows                  44

        Discussion & Analysis of
           Consolidated Statement of Cash Flows               45

        Notes to the Consolidated Financial Statements        46

        Directors’ Declaration                                55

        Independent Audit Report                              56

        Shareholder Information                               57




                                                                                             GrainCorp Annual Report 2002   31
Directors’ Report
                                                                                      GrainCorp Limited and Controlled Entities



The directors present their report on the consolidated entity     Review of Operations
consisting of GrainCorp Limited and the entities it controlled    The consolidated entity recorded a profit after tax of
at the end of, or during, the year ended 30 September 2002.       $48.6 million (EBITDA $119.8 million) for the financial year
                                                                  compared with $44.6 million (EBITDA $115.0 million) for the
Directors
                                                                  previous year. Despite lower receivals and exports, profit
The following persons are directors of GrainCorp Limited at       after tax increased by $4 million primarily due to operational
the date of this report:                                          efficiencies and synergies from the successful merger with
R.L. Greentree (Chairman)                                         Victorian Grain Services Limited.
A.D. McCallum (Deputy Chairman)                                   A more detailed review of the operations during the financial
T.B. Keene (Managing Director)                                    year and the results of those operations appear elsewhere in
W.G. Barron                                                       the Annual Report.
N. Burton Taylor AM
R.R. Flanery                                                      Significant Changes in State of Affairs
R.G. Freeman
                                                                  Share Buy Back
D. Groves
D.G. McGauchie                                                    GrainCorp Limited (GrainCorp) commenced an on-market
J.A. Menegazzo                                                    buy back of ordinary shares on 3 October 2000 for the
D.B. Trebeck (Appointed 27 February 2002)                         period to 31 July 2002. The maximum number of shares that
                                                                  could be acquired was 4.1 million, per annum. The number
Mr P.B. Wade was a director from the beginning of the
                                                                  of shares purchased in the year to 30 September 2002 was
financial year until his retirement on 27 February 2002.
                                                                  291,434 shares bringing the overall total purchased to
Mr D.B. Trebeck was appointed as a director at the
                                                                  1,355,452 shares.
Annual General Meeting on 27 February 2002.
                                                                  Other than the above, there were no significant changes in the
Principal Activities                                              consolidated entity’s state of affairs during the year in review.
The nature and scope of the main activities undertaken by
the consolidated entity during the year were the provision of
services to the grain industry including:

• Receival, handling, storage and transportation of grain and
  other bulk commodities as an agent for marketing
  organisations, end users and growers;

• Marketing of grain and agricultural supplies and the
  operation of grain pools;

• Provision of agronomic services and farm input products.




Dividends
The following dividends have been paid or declared for payment to members:

Date                                                                                           Rate              Amount
                                                                                              (Cents)             $’000

Paid 21 December 2001 - Final for 2001                                                          29.0              11,655
Paid 28 June 2002 - Interim for 2002                                                            34.0              13,713
Declared for payment on 6 January 2003 - Final for 2002                                         44.0              17,632




32   GrainCorp Annual Report 2002
Directors’ Report
                                                                                         GrainCorp Limited and Controlled Entities



Matters Subsequent to the End of the Financial Year                  Drought
                                                                     Due to current drought conditions in most of New South Wales
Allied Mills
                                                                     and Victoria, receivals will be significantly lower in the next
GrainCorp and Cargill Australia Ltd (Cargill), a fully owned
                                                                     financial year. However, cost management measures have
subsidiary of international agribusiness company, Cargill
                                                                     been implemented to lessen the impact on next years results.
Incorporated, have bought the milling and mixing business
from Goodman Fielder Ltd. The acquisition is a joint venture         Other
between GrainCorp and Cargill and will trade as Allied Mills.
                                                                     Other than reported elsewhere in the Annual Report, no
The business was acquired on 4 October 2002 for
                                                                     other matter or circumstance has arisen since 30 September
approximately $200 million, and GrainCorp has a 60%
                                                                     2002 which has significantly affected or may significantly
ownership interest. All necessary regulatory approvals have
                                                                     affect:
been obtained by both companies.
                                                                     (a) the consolidated entity’s operations in future financial
Bulk Terminals Australia                                                 years; or
On 1 November 2002, GrainCorp joined with Grainco                    (b) the results of those operations in future financial years; or
Australia Ltd (Grainco) to form a new joint venture company
                                                                     (c) the consolidated entity’s state of affairs in future financial
called Bulk Terminals Australia (BTA) which will operate their
                                                                         years.
respective Newcastle and Brisbane terminals.

BTA, in which GrainCorp and Grainco maintain an equal                Likely Developments
shareholding, will operate GrainCorp’s existing port facilities at   All information on future likely developments is contained
Carrington and Kooragang Island in Newcastle and Grainco’s           elsewhere in the Annual Report. The directors believe that
facilities at Fisherman Islands and Pinkenba in Brisbane.            additional information as to likely developments in the
                                                                     operations of the consolidated entity in future financial years,
Tax Consolidation
                                                                     including the expected results of those operations, would likely
The first two tranches of the tax consolidation legislation          result in unreasonable prejudice to the consolidated entity.
became substantively enacted on 21 October 2002 when
the New Business Tax System (Consolidation, Value Shifting,
Demergers and Other Measures) Bill 2002 was passed by
the Senate. GrainCorp intends to adopt the legislation in the
next financial year.

The financial effect of the legislation has not been
recognised in this financial report in accordance with UIG
39 Effect of Proposed Tax Consolidation Legislation on
Deferred Tax Balances. It is not possible to disclose the
effect of the legislation in this financial report as it cannot
yet be reliably estimated.




                                                                                                       GrainCorp Annual Report 2002    33
Directors’ Report
                                                                 GrainCorp Limited and Controlled Entities



Environment
GrainCorp is committed to ensuring business practices are
conducted in an environmentally responsible manner.
Management of operations and assets are such that adverse
environmental impacts are minimised. Notwithstanding
compliance to environmental laws as a minimum standard,
GrainCorp strives to ensure best practice principles are
adopted in managing environmental issues. Strategies
include, but are not limited to:

• Development and implementation of sound environmental
  management systems to ensure legislative requirements
  are met;

• Engaging independent specialists to assess current
  practice and assist in improvement strategies;

• Develop and encourage employee awareness and
  responsibility to environmental issues;

• Monitor performance of the consolidated entity in respect
  of environmental issues and adjust processes accordingly;

• Introduce procedural guidelines to address task-specific
  environmental concerns.

An important part of the GrainCorp Environmental
Management System includes the recording of any incident
that may have a potential environmental impact. During the
financial year, no fines or penalties were imposed on any
member of the consolidated entity under environmental
regulation and all required environmental licenses and
permits are current.

Occupational Health and Safety
GrainCorp is committed to ensuring compliance with
relevant health, safety and environmental legislation. The
Board requires a best practice approach in these areas and
has implemented appropriate management objectives and
structures and a regular reporting process to ensure that this
objective is achieved. GrainCorp’s health, safety and
environmental policies are under continuous review and are
updated when required. In general terms, GrainCorp’s
policies are designed to eliminate injury to people and to
minimise loss or damage to product stored and handled on
behalf of customers.




34   GrainCorp Annual Report 2002
Directors’ Report
                                                                                          GrainCorp Limited and Controlled Entities



Information on Directors
Particulars of Directors’ beneficial interest in ordinary shares.

R.L. (Ron) Greentree (Chairman)                                                                                     757,152 shares
Grower from Merrywinebone, NSW. Principal of an agricultural machinery business and Director of
BRI Australia Ltd. Chairman of Vicgrain Limited and Victorian Grain Services Limited. Chairman of the
Remuneration and member of the Capital Works and Equity Committees.

A.D. (Allan) McCallum (Deputy Chairman) Dip Ag.Sc                                                                   126,615 shares
Grower from Kerang, Victoria. Director of Vicgrain Limited and Victorian Grain Services Limited. Deputy
Chairman of Pivot Limited, Chairman of Nugrain Pty Limited, Chairman of Farm Horizons Limited and
President of Australian Oilseeds Federation. Chairman of the Capital Works and Occupational
Health, Safety and Environment Committees.

T.B. (Tom) Keene (Managing Director) B.Ec, MAICD                                                                    170,026 shares
Managing Director of GrainCorp Group and member of the Risk Management Committee. Chairman
of Allied Mills Australia Pty Limited.

W.G. (Graham) Barron                                                                                                154,982 shares
Grower from Ungarie, NSW. Chairman of the Risk Management Committee and member of the Capital
Works Committee.

N. (Nick) Burton Taylor AM B.Ec, ASIA, FCA, FAICD                                                                 1,520,038 shares
Grower from Boorowa, NSW. Principal Hillgrove Pastoral Company. Director of Rural Press Limited,
Bankstown Airport Limited, Heggies Bulk Haul Limited and The Australian Agricultural Company Limited.
Member Public Transport Union (Loco Division). Chairman of the Audit Committee, the GrainCorp
Foundation and member of the Remuneration Committee.

R.R. (Ross) Flanery                                                                                                 223,372 shares
Grower from Harden, NSW. Commercial interests in forestry and hydro-electric power. Chairman of the
Equity Committee and member of the Capital Works Committee.

R.G. (Rick) Freeman                                                                                                 136,192 shares
Grower from Edgeroi, NSW. Company principal of Norseman Machinery Imports Pty Limited. Member
of the Capital Works Committee. Director of GrainCorp Superannuation Pty Limited.

D. (David) Groves B. Com, M.Com, CA                                                                               1,633,099 shares
Chartered Accountant and Company Director. Director of Masling Industries Pty Limited and Equity
Trustees Limited. Active in the management of companies involved in viticulture and investment.
Member of the Equity, Risk Management and Remuneration Committees.

D.G. (Donald) McGauchie                                                                                              93,543 shares
Grower from Prairie, Victoria. Director of Reserve Bank of Australia, Director of Telstra Corporation Limited,
Ridley Corporation Limited, National Foods Limited and Deputy Chairman of Australian Wool Testing
Authority Limited. Member of the Equity and Remuneration Committees.

J.A. (Julian) Menegazzo B.Sc.                                                                                       472,365 shares
Grower from Balliang, Victoria. Active in horticulture marketing business. Member of the Audit Committee
and GrainCorp Foundation.

D.B. (David) Trebeck B.Sc.Agr (Hons), M.Ec.                                                                          13,158 shares
Consultant, Grower and Company Director from Canberra, ACT. Executive Chairman of ACII Tasman
Pty Limited. Director of Incitec Limited, National Grazing Services Pty Limited. Member of the Audit
Committee and Occupational Health, Safety and Environment Committees.


                                                                                                       GrainCorp Annual Report 2002   35
Directors’ Report
                                                                                              GrainCorp Limited and Controlled Entities



The particulars of Directors’ beneficial interests in shares are as at the date of this report.

As at the date of this report, Grain Growers Association “GGA” owned 1 Foundation share and 8,253,709 ordinary shares in
GrainCorp Limited. Messrs Greentree, McCallum, Barron, Flanery, Freeman and McGauchie are directors of GGA and members
of GGA. Messrs Burton Taylor, Menegazzo and Trebeck are members of GGA and in that capacity have an interest in the above
shares owned by GGA.

Meetings of Directors
The following table sets out the number of meetings of GrainCorp’s Directors (including meetings of committees of Directors)
held during the twelve months to 30 September 2002, and the number of meetings attended by each director.

Director                                              Board Meetings                                     Committee Meetings
                                          Number held during       Number                          Number held         Number
                                            period in office       attended                   during period in office attended

Total Number of Meetings Held
R.L. Greentree                                     12                     12                           17                   16
A.D. McCallum                                      12                     12                           20                   20
T.B. Keene                                         12                     12                            5                   5
W.G. Barron                                        12                     12                           11                   11
N. Burton Taylor                                   12                     12                           11                   11
R.R. Flanery                                       12                     11                           19                   19
R.G. Freeman                                       12                     12                           13                   13
D. Groves                                          12                     12                           13                   13
D.G. McGauchie                                     12                     11                            9                   8
J.A. Menegazzo                                     12                     12                            5                   5
D.B. Trebeck (Appointed 27/2/02)                    7                      6                            2                   2
P.B. Wade (Retired 27/2/02)                         5                      2                            4                   2




36   GrainCorp Annual Report 2002
Directors’ Report
                                                                 GrainCorp Limited and Controlled Entities



Emoluments of Board Members and Senior Executives
The criteria for reviewing the emoluments of the Managing
Director and senior executive include achievement of
individual performance objectives as defined by the internal
Performance Management System, advice from external
consultants on the prevailing market for equivalent positions,
the company’s overall performance and achievement of key
strategic goals, increased and changed work loads,
increased responsibilities and interaction of the incumbent
with the Board and external parties.

The Remuneration Committee is responsible for ensuring the
emoluments of senior executives reflect their responsibilities
and performance. Further details are provided in the
Corporate Governance Statement in the Annual Report.

Non-executive annual Directors Fees from 1 March 2002 are
$44,700 per director, $111,700 for the Chairman and $74,400
for the Deputy Chairman. With the exception of the Chairman
and Deputy Chairman, additional yearly fees of $4,650 are
paid to directors who are members of committees other than
audit. The Chairman of these committees is paid $6,950.

Yearly fees for the Audit Committee are $6,000 for members
and $8,950 for the Chairman. $1,110 per meeting will be
paid to a director who chairs an ad hoc committee and
$800 per meeting to a director who is a member of an ad
hoc committee. In addition to reimbursement of expenses,
any allowance paid to directors is in line with rates
prescribed for members of the Senior Executive Service,
Australian Public Service.

Retiring non-executive Directors are entitled to an allowance
up to a maximum of their last three years remuneration after
nine years service (pro-rata for a lesser period with a
minimum of three years).

Details of emoluments paid or payable to each director of
GrainCorp Limited and each of the five executive officers
of the company and the consolidated entity receiving the
highest emoluments in the financial year are set out in the
following tables.




                                                                            GrainCorp Annual Report 2002   37
Directors’ Report
                                                                                     GrainCorp Limited and Controlled Entities



Non-Executive Directors of GrainCorp Limited
                                                                 Directors’ Fees    Superannuation                Total
                                                                  & Allowances       Contributions
                                                                        $                  $                        $
R.L. Greentree                                                      109,441                  9,056               118,497
A.D. McCallum                                                         89,375                 5,513                94,888
W.G. Barron                                                           56,679                 6,737                63,416
N. Burton Taylor                                                      55,999                 5,748                61,747
R.R. Flanery                                                          50,554                12,679                63,233
R.G. Freeman                                                          49,058                 9,757                58,815
D. Groves                                                             57,414                 4,728                62,142
D.G. McGauchie                                                        51,842                 5,226                57,068
J.A. Menegazzo                                                        49,860                 5,274                55,134
D.B. Trebeck (Appointed 27/2/02)                                      29,446                 2,473                31,919
P.B. Wade (Retired 27/2/02)                                         140,529*                 5,180               145,709

* Includes retirement benefit
Note: Directors’ fees include applicable committee fees.



Executive Director of GrainCorp Limited
                                                       Salary           Bonus      Motor              Super-      Total
                                                                                   Vehicle           annuation
Name                                                       $              $          $                   $          $
T.B. Keene
Managing Director                                      377,152          97,200     48,878             40,211     563,441



Other Executives of GrainCorp Limited
                                                       Salary           Bonus      Motor              Super-      Total
                                                                                   Vehicle           annuation
Name and position                                          $              $          $                   $          $
M. Watts, Chief Financial Officer                      362,658*         23,220          -              4,060     389,938
J. Di Leo, Chief Operating Officer                     248,818          43,200     41,010             24,435     357,463
A. Johns, Business Development Manager                 140,443          21,000     16,040             20,622     198,105
J. Tansley, Southern Division Manager                  136,875          17,273      9,091             28,594     191,833
N. Hart, Corporate Services Manager                    142,989           9,844     21,192             14,164     188,189

*Includes retirement payment and leave entitlements.
Note: Emoluments reported are those paid or payable for the 12 months ended 30 September 2002. The amounts shown include
fringe benefits tax where applicable.




38   GrainCorp Annual Report 2002
Directors’ Report
                                                                                          GrainCorp Limited and Controlled Entities



Share Options
Two additional executive options plans were approved by shareholders at the 2002 Annual General Meeting allowing a total of
940,000 shares to be acquired. The number of options granted to the Managing Director and the five most highly remunerated
executives were as follows:

Name and Position                                                                                    Number of Options
Directors
Tom Keene, Managing Director                                                                               250,000

Other Executives
M. Watts, Chief Financial Officer *                                                                           -
J. Di Leo, Chief Operating Officer                                                                         100,000
A. Johns, Business Development Manager                                                                       50,000
J. Tansley, Southern Division Manager                                                                        50,000
N. Hart, Corporate Services Manager                                                                          50,000
* Retired.

The options were granted under the executive option plans 2a and 2b.

Unissued ordinary shares of GrainCorp Limited under option at the date of this report are as follows:

Option Plan                                                        Number              Issue Price           Expiry Date

GrainCorp Executive Option Plan 2a                                 250,000                $8.85          30 September 2005
GrainCorp Executive Option Plan 2b                                 690,000               $10.93          30 September 2005



A total of 68,000 ordinary shares of GrainCorp Limited were           Rounding of Amounts to Nearest Thousand Dollars
issued during the year ended 30 September 2002 on the                 The company is of a kind referred to in Class Order 98/0100
exercise of options granted under the GrainCorp Executive             issued by the Australian Securities and Investments
Option Plan 1b. The amount paid on each of the shares was             Commission, relating to the “rounding off” of amounts in the
$6.25. No amounts are unpaid on any of the shares.                    directors’ report and financial report. Amounts in the
Since 30 September 2002, 88,000 shares of GrainCorp                   directors’ report and financial report have been rounded off
Limited were issued on exercise of options granted under              to the nearest thousand dollars in accordance with that
the GrainCorp Executive Option Plan 1c. The amount paid               Class Order.
on each of the shares was $6.25. No amounts are unpaid on
                                                                      Auditor
any of the shares.
                                                                      PricewaterhouseCoopers continues in office in accordance
Insurance of Officers                                                 with Section 327 of the Corporations Act 2001.
During the financial year, the consolidated entity has paid, or       This report is made in accordance with a resolution of the
agreed to pay, premiums to insure persons who are, or have            directors.
been, an officer of the company or a related entity, or any
past, present or future director or officer of the company,
or any of it’s subsidiaries or related entities. The contracts
prohibit disclosure of the amount of the premium paid.
                                                                      R.L. Greentree
The liabilities insured include costs and expenses that may           Chairman
be incurred in defending civil or criminal proceedings that
                                                                      Sydney
may be brought against the officers in their capacity as
                                                                      4 December 2002
officers of entities in the consolidated entity.



                                                                                                     GrainCorp Annual Report 2002   39
Consolidated

Statement of Financial Performance
for the year ended 30 September 2002                                                  GrainCorp Limited and Controlled Entities



                                                                                                      Consolidated
                                                                                                2002             2001
                                                                                                $’000            $’000
Revenue from operating activities                                                              688,284         507,203

Other revenue                                                                                   11,722          12,074

Total revenue from ordinary activities                                                         700,006         519,277


Goods purchased for resale                                                                    (401,552)        (227,566)

Raw materials and consumables used                                                             (20,132)         (22,704)

Employee benefits expense                                                                      (86,706)         (87,663)

Depreciation and amortisation expenses                                                         (41,091)         (38,933)

Borrowing costs expense                                                                        (10,888)         (11,884)

Repairs and maintenance                                                                        (13,459)         (15,199)

Other expenses from ordinary activities                                                        (58,296)         (51,140)

Expenses from ordinary activities                                                             (632,124)        (455,089)

Shares of net profits of associate accounted for using the equity method                              (90)               -

Profit from ordinary activities before income tax expense                                       67,792          64,188

Income tax expense                                                                             (19,189)         (19,627)

Profit from ordinary activities after income tax expense                                        48,603          44,561

Outside equity interests in profit from ordinary activities after income tax                          93             19

Net profit attributable to members of GrainCorp Limited                                         48,696          44,580

Total changes in equity other than those resulting from transactions with owners                48,696          44,580

                                                                                                 Cents           Cents
Basic earnings per share                                                                         121.2           109.4
Diluted earnings per share                                                                       118.2           109.0


The above statement of financial performance should be read in conjunction with the attached notes.




40   GrainCorp Annual Report 2002
Discussion and analysis of Consolidated

Statement of Financial Performance
for the year ended 30 September 2002                            GrainCorp Limited and Controlled Entities



Financial Performance Summary
Profit after tax for the year ended 30 September 2002
was $48.6 million, compared to $44.6 million for the
corresponding year. Despite lower receivals and exports,
profit after tax increased by $4 million, primarily due to
operational efficiencies and synergies from the successful
merger with Victorian Grain Services Limited. Earnings
before interest, tax, depreciation and amortisation (EBITDA)
also increased from $115.0 million to $119.8 million.

An analysis of revenue and profit after tax by segment is set
out in Note 2. A further review of the operations and results
is contained elsewhere in the Annual Report.

Storage & Handling
GrainCorp received a total of 12 million tonnes of grain,
which was slightly lower than last years 12.1 million tonnes,
and exported 6.8 million tonnes, also lower than the
7.2 million tonnes exported last year. The lower exports
contributed to a higher carryover at 30 September 2002
of 4.7 million tonnes, up from 4.4 million tonnes for the
previous year. The segmented profit for storage & handling
was $102.1 million based on revenue of $280.2 million
(2001: $263.7 million).

Marketing
For the year ended 30 September 2002, Marketing reported
a segmented profit of $7 million which was 32% higher than
the previous year’s profit of $5.3 million. This increase in
profit is a result of a significant increase in revenue from
$254.7 million to $424.2 million. The 67% increase in
revenue is due to increased trading volumes, continued
growth in market share and favourable trading conditions.

Marketing has developed close relationships with end users
of grains and improved throughput of grain through the
storage network. This is now being reflected in better
overall profitability.

Depreciation, Interest and Taxation
Increased depreciation on a higher asset base was offset
by lower borrowing costs due to a reduction in interest rates
and a lower effective tax rate.




                                                                           GrainCorp Annual Report 2002   41
Consolidated

Statement of Financial Position
as at 30 September 2002                                                                GrainCorp Limited and Controlled Entities



                                                                                                      Consolidated
                                                                                                    2002         2001
                                                                                                    $’000        $’000
Current Assets
Receivables                                                                                         95,949       63,748
Inventories                                                                                          8,588        9,416
Other                                                                                                7,991        8,611

Total Current Assets                                                                               112,528       81,775

Non-Current Assets
Receivables                                                                                            83            94
Other financial assets                                                                              25,695       25,269
Property, plant & equipment                                                                        416,402      413,115
Deferred tax assets                                                                                  6,381        3,319
Intangible assets                                                                                    8,047        9,224

Total Non-Current Assets                                                                           456,608      451,021

Total Assets                                                                                       569,136      532,796

Current Liabilities
Payables                                                                                            29,469       26,141
Interest bearing liabilities                                                                        42,401       34,449
Current tax liabilities                                                                              5,274        2,091
Provisions                                                                                          28,473       20,380

Total Current Liabilities                                                                          105,617       83,061

Non-Current Liabilities
Interest bearing liabilities                                                                       145,211      145,972
Deferred tax liabilities                                                                            15,884       14,926
Provisions                                                                                          15,137       15,501

Total Non-Current Liabilities                                                                      176,232      176,399

Total Liabilities                                                                                  281,849      259,460

Net Assets                                                                                         287,287      273,336

Equity
Contributed equity                                                                                  96,524       99,531
Reserves                                                                                            18,430       18,430
Retained profits                                                                                   172,333      154,987

Total GrainCorp Limited Interest                                                                   287,287      272,948
Outside equity interest:                                                                                    -        388

Total Equity                                                                                       287,287      273,336

The above statement of financial position should be read in conjunction with the attached notes.




42   GrainCorp Annual Report 2002
Discussion and analysis of Consolidated

Statement of Financial Position
as at 30 September 2002                                              GrainCorp Limited and Controlled Entities



Total assets increased by $36.3 million and total liabilities
increased by $22.4 million during the year ended
30 September 2002. The following key transactions were
the main movements in the balance sheet items:

Assets
• Receivables, prepayments and other current assets
  increased by $31.6 million primarily due to higher
  marketing activity levels;

• Increase in property, plant and equipment through capital
  expenditure of $43.9 million, offset by a depreciation
  charge of $40.6 million.

Liabilities
• Interest bearing liabilities required for the funding of capital
  expenditure and working capital requirements increased
  by $7.2 million;

• Increase in current provisions of $8.1 million is mainly due
  to a higher final dividend provision. For September 2002,
  final dividend declared is 44 cents per share compared to
  29 cents per share at the same time last year;

• Payables and other creditors have increased moderately,
  reflecting the increased size of GrainCorp’s business.

Shareholders Equity
Contributed equity reduced by $3 million for the year due to:

• Share buy-back of 0.3 million shares for $3.4 million, offset
  by

• 68,000 ordinary shares issued for $0.4 million on exercise
  of executive share options.




                                                                                GrainCorp Annual Report 2002   43
Consolidated

Statement of Cash Flows
for the year ended 30 September 2002                                                GrainCorp Limited and Controlled Entities



                                                                                                   Consolidated
                                                                                                 2002         2001
                                                                                                $’000         $’000
Cash Flows from Operating Activities
Receipts from customers (inclusive of goods & services tax)                                    727,417      505,510
Payments to suppliers and employees (inclusive of goods & services tax)                        (636,105)    (384,204)
                                                                                                91,312      121,306
Interest received                                                                                  238            690
Borrowing costs                                                                                 (10,924)     (11,884)
Income taxes paid                                                                               (18,299)     (23,998)

Net Cash Inflow / (Outflow) from Operating Activities                                           62,327       86,114

Cash Flows from Investing Activities
Cash acquired on merger                                                                                 -     4,192
Payments for property, plant and equipment                                                      (46,925)     (52,311)
Purchases of investments / business                                                                 (50)     (25,219)
Dividends received                                                                               1,917            571
Proceeds from sale of property, plant and equipment                                              1,760        1,833
Loans repaid by associates                                                                       1,577                -
Cash decrease on deconsolidation of group entity                                                   585                -
Loans from related parties                                                                              -         157

Net Cash Inflow / (Outflow) from Investing Activities                                           (41,136)     (70,777)

Cash Flows from Financing Activities
Proceeds from interest bearing liabilities                                                      97,300       55,655
Repayment of interest bearing liabilities                                                       (88,099)      (1,250)
Payments for shares bought back                                                                  (3,421)     (10,530)
Proceeds from executive share options exercised                                                    425            425
Purchase of Class B shares from GGA                                                                     -    (37,575)
Share buy-back transaction costs                                                                    (11)           (43)
Dividends paid                                                                                  (25,373)     (32,211)

Net Cash Inflow / (Outflow) from Financing Activities                                           (19,179)     (25,529)

Net increase / (decrease) in cash held                                                           2,012       (10,192)
Cash at the beginning of the financial year                                                     (10,618)          (426)

Cash at the End of the Financial Year                                                            (8,606)     (10,618)


The above statement of cash flows should be read in conjunction with the accompanying notes.




44   GrainCorp Annual Report 2002
Discussion and analysis of Consolidated

Statement of Cash Flows
for the year ended 30 September 2002                                                       GrainCorp Limited and Controlled Entities



Cash Flows from Operating Activities
For the year ended 30 September 2002, net cash inflow from operating activities was $62.3 million, a decrease of $23.8 million
from 2001’s net inflow of $86.1 million. The decrease is due to the higher working capital commitments of the marketing division,
which is reflected in current receivables on the statement of financial position.

Cash Flows from Investing Activities
The significant items in the net cash outflow from investing activities of $41.1 million (2001: Outflow $70.8 million) were:

                                                                                                                     $ million
Sale of property, plant and equipment                                                                                   1.8
Dividends received from investments                                                                                     1.9
Loans repaid by associate companies                                                                                     1.6
Purchase of property, plant and equipment                                                                              (46.9)



Cash Flows from Financing Activities
Net cash outflow from financing activities was $19.2 million (2001: Outflow $25.5 million). The major contributors to this years net
outflow were:

                                                                                                                     $ million
Dividends paid - 2001 final & 2002 interim                                                                             (25.4)
On-market buy back of ordinary shares                                                                                   (3.4)
Net receipts from borrowings                                                                                            9.2




                                                                                                        GrainCorp Annual Report 2002   45
Notes          to the Consolidated Financial Statements
for the year ended 30 September 2002                                           GrainCorp Limited and Controlled Entities



1.Summary of Significant Accounting Policies                  Principles of Consolidation
 This general purpose financial report has been prepared in   The consolidated financial statements incorporate the
 accordance with Accounting Standards, other authoritative    assets and liabilities of all entities controlled by GrainCorp
 pronouncements of the Australian Accounting Standards        as at 30 September 2002 and the results of all controlled
 Board, Urgent Issues Group Consensus Views and the           entities for the year then ended. The effects of all
 Corporations Act 2001.                                       transactions between entities in the consolidated entity are
                                                              eliminated in full. Outside equity interests in the results
 The principal accounting policies adopted by GrainCorp
                                                              and equity of controlled entities are shown separately in
 Limited “GrainCorp” and the consolidated entity
                                                              the consolidated statement of financial performance and
 (i.e. GrainCorp and its controlled entities GrainCorp
                                                              statement of financial position respectively.
 Services Limited “Services”, GrainCorp Operations Limited
 “Operations”, GrainCorp Victoria Pty Limited “Victoria”,     Where control of an entity is obtained during a financial
 GrainCorp National Pty Limited “National”, GrainCorp         year, its results are included in the consolidated statement
 Queensland Pty Limited “Queensland”, Victorian Grain         of financial performance from the date on which control
 Services Limited “VGS”, Vicgrain Limited “Vicgrain”,         commenced. Where control of an entity ceases during a
 Vicgrain Assets Pty Limited “Assets”, Vicgrain Finance Pty   financial year its results are included for that part of the
 Limited “Finance”) are stated to assist the general          period during which control exists.
 understanding of these statements.
                                                              Investments in associates are accounted for in the
 Unless otherwise noted, the accounting policies adopted      consolidated financial statements using the equity
 are consistent with those of the previous year.              method. Under this method, the consolidated entity’s
 Comparative information is reclassified where appropriate    share of the profits or losses of associates is recognised in
 to enhance comparability. The accounts are drawn up on       the consolidated statement of financial performance, and
 historical cost principles.                                  its share of post-acquisition movements in reserves is
                                                              recognised in consolidated reserves. The cumulative post-
 New Accounting Standards                                     acquisition movements are adjusted against the cost of
 As a result of applying the revised accounting standard      the investment. Associates are those entities over which
 AASB 1005 Segment Reporting, a number of comparative         the consolidated entity exercises significant influence, but
 amounts were represented or reclassified to ensure           not control.
 comparability with the current accounting period.




46   GrainCorp Annual Report 2002
Notes               to the Consolidated Financial Statements
for the year ended 30 September 2002                                                    GrainCorp Limited and Controlled Entities



2.Segment Information
                                                           Storage &      Marketing         Intersegment     Consolidation
                                                           Handling                          Eliminations
2002                                                         $’000          $’000                $’000            $’000

Sales to customers outside consolidated entity                 265,762    422,522                    -          688,284
Intersegment sales                                              14,397       1,628             (16,025)                   -
Total sales revenue                                            280,159    424,150              (16,025)         688,284


Share of net (loss) of associates                                  (90)             -                -                (90)
Other revenue                                                    7,888       3,834                   -            11,722
Total segment revenue                                          287,957    427,984              (16,025)         699,916


Segment result                                                 102,103       6,986                   -          109,089
Unallocated expenses                                                                                             (41,297)
Profit from ordinary activities before income tax                                                                 67,792


Income tax expense                                                                                               (19,189)
Profit from ordinary activities after income tax                                                                  48,603


Segment assets                                                 462,373     67,145                    -          529,518
Unallocated assets                                                                                                39,618
Total assets                                                                                                    569,136


Segment liabilities                                            241,150     19,541                    -          260,691
Unallocated liabilities                                                                                           21,158
Total liabilities                                                                                               281,849


Investments in associates                                            -              -                -                    -
Unallocated investments in associates                                                                                500
Total investments in associates                                                                                      500


Acquisitions of property, plant and equipment,
intangibles and other non-current segment assets                46,855         70                    -            46,925


Depreciation and amortisation expense                           40,541        550                    -            41,091


Net cash inflow from operating activities                       98,368      (7,056)                  -            91,312
Unallocated cashflows                                                                                            (28,985)
Net cash inflow from operating activities                                                                         62,327




                                                                                                   GrainCorp Annual Report 2002   47
Notes               to the Consolidated Financial Statements
for the year ended 30 September 2002                                                   GrainCorp Limited and Controlled Entities



2.Segment Information (continued)
                                                           Storage &     Marketing         Intersegment     Consolidation
                                                           Handling                         Eliminations
2001                                                         $’000         $’000                $’000           $’000

Sales to customers outside consolidated entity                 253,856   253,347                    -          507,203
Intersegment sales                                               9,834      1,366             (11,200)                  -
Total sales revenue                                            263,690   254,713              (11,200)         507,203


Other revenue                                                   10,571      1,503                   -           12,074
Total segment revenue                                          274,261   256,216              (11,200)         519,277


Segment result                                                 106,789      5,252                   -          112,041
Unallocated expenses                                                                                           (47,853)
Profit from ordinary activities before income tax                                                               64,188


Income tax expense                                                                                             (19,627)
Profit from ordinary activities after income tax                                                                44,561


Segment assets                                                 447,667    42,317                    -          489,984
Unallocated assets                                                                                              42,812
Total assets                                                                                                   532,796


Segment liabilities                                            233,046      9,397                   -          242,443
Unallocated liabilities                                                                                         17,017
Total liabilities                                                                                              259,460


Investments in associates                                            -             -                -                   -
Unallocated investments in associates                                                                               50
Total investments in associates                                                                                     50


Acquisitions of property, plant and equipment,
intangibles and other non-current segment assets                51,255        56                    -           51,311


Depreciation and amortisation expense                           38,818       115                    -           38,933


Net cash inflow from operating activities                      106,754    14,552                    -          121,306
Unallocated cashflows                                                                                          (35,192)
Net cash inflow from operating activities                                                                       86,114




48   GrainCorp Annual Report 2002
Notes           to the Consolidated Financial Statements
for the year ended 30 September 2002                                                      GrainCorp Limited and Controlled Entities



2.Segment Information (continued)
Notes to and forming part of the segment information:
a) The previous industry segments derive revenue from the following operations and activities:
   Storage and Handling: includes fees for receival, storage and testing of wheat, other grains and bulk commodities.
   Marketing: Marketing and transportation of grain and agricultural products, and the operation of grain pools.

b) Intersegment pricing is on an “arm’s length” basis.

c) The consolidated entity only operates in one geographical segment - Australia.



3.Dividends
                                                                                                           Parent Entity
                                                                                                       2002             2001
                                                                                                      $’000             $’000
Ordinary shares:
Interim dividend paid of 34 cents (2001 - 43 cents)
             Franked at 30% (2001 - 34%)                                                              13,713           17,513
Final dividend proposed of 44 cents (2001 - 29 cents)
             Franked at 30% (2001 - 30%)                                                              17,632           11,655
                                                                                                      31,345           29,168


The franked dividends proposed as at 30 September 2002 will be paid out of existing franking credits or out of franking credits
arising from the payment of income tax in the year ending 30 September 2003.

                                                                           Consolidated                    Parent Entity
                                                                        2002           2001            2002             2001
                                                                        $’000         $’000           $’000             $’000

Franking credits available
for the subsequent financial year                                      29,339         22,901           8,353            9,391

Note: The comparative for franking credits available for the subsequent financial year has been restated to reflect the changes that
took place to the dividend imputation system effective from 1 July 2002, introduced by the New Business Tax System (Imputation)
Bill 2002.

The above amounts represent the balances of the franking accounts as at the end of the financial year, adjusted for:
(a) franking credits that will arise from the payment of income tax payable as at the end of the year;
(b) franking debits that will arise from the payment of dividends proposed as at the end of the financial year; and
(c) franking credits that may be prevented from being distributed in the subsequent financial year.




                                                                                                         GrainCorp Annual Report 2002   49
Notes          to the Consolidated Financial Statements
for the year ended 30 September 2002                                                    GrainCorp Limited and Controlled Entities



4. Earnings Per Share
                                                                                                      Consolidated
                                                                                                   2002            2001
                                                                                                  Cents            Cents

Basic earnings per share                                                                          121.2            109.4
Diluted earnings per share                                                                        118.2            109.0


Weighted average number of ordinary shares used as the
denominator in the calculation of basic earnings per share.                                     40,174,806     40,756,968


Weighted average number of ordinary shares and potential ordinary shares
used as the denominator in the calculation of diluted earnings per share.                       41,202,806     40,912,968




5. Financial Instruments                                              (b) Foreign Exchange Risk
  GrainCorp and its controlled entities are parties to                  The consolidated entity hedges against exposures from
  derivative financial instruments with associated risk in the          grain futures taken in the US, Canada and Europe. When
  normal course of business in order to hedge exposure to               required to, hedging is undertaken through transactions
  fluctuations in commodity prices, foreign exchange and                entered into in foreign exchange markets. Forward
  interest rates. Their use is subject to a comprehensive set           exchange contracts and currency option contracts have
  of policies, procedures and limits approved by the Board              been used for hedging purposes. The contracts are timed
  of Directors.                                                         to mature when the grain futures expire.

(a) Commodity Price Risk
  The consolidated entity is exposed to grain price
  fluctuations through its grain trading activities. To hedge
  this commodity price risk, the consolidated entity has
  entered into grain commodity futures contracts and grain
  commodity options contracts with terms between 2 and
  16 months depending on the underlying transactions.

  At balance date, net outstanding commodity futures
  contracts had a fair value of $189,122,792 (2001 -
  $81,038,256) with various maturities up to December
  2003. If settled at balance date, these contracts would
  have resulted in a net loss of $10,279,000 (2001 - $58,882)
  which is offset by an unrecognised net gain on the
  underlying transactions being hedged.

  Commodity sold and bought options are marked to
  market at each balance date. These options with
  maturities up to April 2003, if closed out at balance date,
  would have resulted in a net gain of $1,088,873 (2001 -
  $2,453,113) which may be offset by an unrecognised net
  loss on the underlying transactions being hedged.




50   GrainCorp Annual Report 2002
Notes             to the Consolidated Financial Statements
for the year ended 30 September 2002                                                       GrainCorp Limited and Controlled Entities



5. Financial Instruments (continued)
At balance date, the outstanding foreign exchange contracts are (Australian Dollar equivalent).

                                                              2002         2002 Average            2001         2001 Average
                                                             A$’000          Exchange             A$’000          Exchange
                                                                                Rate                                 Rate

Buy US Dollars / Sell Australian Dollars
0 - 6 months                                                 41,527            0.5419               1,120           0.5594
6-12 months                                                     955            0.5016              15,563           0.5005
12-18 months                                                         -                 -              883           0.4972

Buy Australian Dollars / Sell US Dollars
0 - 6 months                                                 86,038            0.5396              66,839           0.5326
6-12 months                                                   8,008            0.5370               4,316           0.5097
12-18 months                                                    458            0.5459               2,932           0.5115

Buy Canadian Dollars / Sell Australian Dollars
0 - 6 months                                                    349            0.8596               3,730           0.8071

Buy Australian Dollars / Sell Canadian Dollars
0 - 6 months                                                 31,128            0.8327              16,277           0.7861
6-12 months                                                          -                 -              760           0.7899

Buy Euros / Sell Australian Dollars
0 - 6 months                                                  1,805            0.5540                 173           0.5781

Buy Australian Dollars / Sell Euros
0 - 6 months                                                         -                 -              244           0.5329
6-12 months                                                          -                 -            3,922           0.5736
12-18 months                                                         -                 -            1,476           0.5625


As these contracts are hedging future settlement of US, European and Canadian grain and oilseed futures, any unrealised gains or
losses on the contracts, together with the cost of the contracts, are deferred and will be recognised when the underlying
transaction occurs.



The following foreign exchange gains and losses have been deferred.

                                    2002         2001
                                   $’000         $’000
Unrealised gains                   1,614         1,105
Unrealised losses                     (936)      (6,839)
Net gain (loss)                       678        (5,734)




                                                                                                      GrainCorp Annual Report 2002   51
Notes          to the Consolidated Financial Statements
for the year ended 30 September 2002                             GrainCorp Limited and Controlled Entities



5. Financial Instruments (continued)

(c) Interest Rate Swap Contracts
 Bank loans of the consolidated entity currently bear an
 average variable interest rate of 5.42% (2001: 4.60%). It is
 the consolidated entity’s policy to protect part of the loans
 from exposure to increasing interest rates. Accordingly, it
 has entered into interest rate swap contracts under which
 the consolidated entity is entitled to receive interest at
 variable rates and is obliged to pay interest at fixed rates.
 The contracts require settlement of net interest receivable
 or payable each 90 or 180 days. The settlement dates
 coincide with the dates on which interest is payable on the
 underlying debt.

 Swaps currently in place cover 37% (2001: 40%) of the
 total borrowings outstanding. The average fixed interest
 rate is 6.81% (2001: 7.17%) and the variable rates are
 between 0.30% and 0.50% (2001: 0.30% and 0.50%
 respectively) above 90 or 180 day bank bill rate.

 At 30 September 2002, the notional principal amounts and
 periods of expiry of the interest rate swap contracts are as
 follows:

                                     2002         2001
                                     $’000        $’000
 0-1 years                          25,000        5,980
 2-3 years                          40,000       60,000



 The fair values of interest rate swaps are determined as
 the difference in present value of the future interest
 cashflow, amounting to a financial liability of $1,325,133
 (2001: financial liability $3,659,634). GrainCorp also has a
 nominal $1.5 million interest rate collar amortising until
 March 2003, with an interest cap rate of 5.95% and an
 interest floor rate of 4.95%.




52   GrainCorp Annual Report 2002
Notes           to the Consolidated Financial Statements
for the year ended 30 September 2002                                                       GrainCorp Limited and Controlled Entities



5. Financial Instruments (continued)

(d) Interest Rate Risk Exposures
The consolidated entity’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial
assets and financial liabilities is set out below:
                                     Average     Floating           Fixed interest maturing in:              Non
                                     interest    interest     1 year        over 1 year    more than       interest
                                       rate        rate       or less       to 5 years       5 years       bearing         Total
2002                                    %         $’000       $’000            $’000          $’000         $’000          $’000
Financial assets
Investments                                                                                                 25,695         25,695
Cash and deposits                                                                                                                -
Receivables                                                                                                 95,949         95,949
Interest rate collar*                  5.95                    1,500                                                        1,500
Interest rate swaps*                   5.41          65,000                                                                65,000
                                                     65,000    1,500               -              -        121,644       188,144
Financial liabilities
Bank overdrafts                        8.45           8,606                                                                 8,606
Trade and other creditors                                                                                   29,469         29,469
Bills payable                          5.42      176,100                                                                 176,100
Other loans                                                                                                    800            800
Finance leases                         7.13                     195           1,911                                         2,106
Interest rate collar*                  4.95                    1,500                                                        1,500
Interest rate swaps*                   6.81                   25,000         40,000                                        65,000
                                                 184,706      26,695         41,911               -         30,269       283,581
Net financial assets (liabilities)                                                                                        (95,437)
*notional principal
                                     Average     Floating           Fixed interest maturing in:              Non
                                     interest    interest     1 year        over 1 year    more than       interest
                                       rate        rate       or less       to 5 years       5 years       bearing         Total
2001                                    %         $’000       $’000            $’000          $’000         $’000          $’000
Financial assets
Investment                                                                                                  25,269         25,269
Cash and deposits                                                                                                                -
Receivables                                                                                                 63,748         63,748
Interest rate collar*                  5.95                    1,250          1,500                                         2,750
Interest rate swaps*                   5.20          65,980                                                                65,980
                                                     65,980    1,250          1,500               -         89,017       157,747
Financial liabilities
Bank overdrafts                        8.45          10,618                                                                10,618
Trade and other creditors                                                                                   26,141         26,141
Bills payable                          5.01      165,500                                                                 165,500
Other loans                                                                                                  1,205          1,205
Finance leases                         7.13                     826           2,272                                         3,098
Interest rate collar*                  4.95                    1,250          1,500                                         2,750
Interest rate swaps*                   7.17                    5,980         60,000                                        65,980
                                                 176,118       8,056         63,772               -         27,346       275,292
Net financial assets (liabilities)                                                                                       (117,545)
*notional principal

                                                                                                       GrainCorp Annual Report 2002   53
Notes          to the Consolidated Financial Statements
for the year ended 30 September 2002                              GrainCorp Limited and Controlled Entities



5. Financial Instruments (continued)

Reconciliation of Net Financial Assets to Net Assets
                                                                            2002           2001
                                                                            $’000          $’000

Net financial assets (liabilities) as above                               (95,437)       (117,545)
           Non-financial assets and liabilities
           Inventories                                                      8,588           9,416
           Property, plant and equipment                                  416,402        413,115
           Intangibles                                                      8,047           9,224
           Other assets                                                    14,455         12,024
           Provisions                                                     (64,768)        (52,898)
           Other liabilities                                                     -                -
Net assets per balance sheet                                              287,287        273,336




(e) Credit Risk
  The credit risk on financial assets of the consolidated
  entity which have been recognised on the statement of
  financial position, other than investments in shares, is
  generally the carrying amount, net of any provision for
  doubtful debts.

  There is potential for the current dry conditions to increase
  credit risk through counterparties not being able to meet
  their obligations. The consolidated entity considered this
  exposure and associated provisions at balance date and
  continue to monitor these risks.



6. Full Financial Report
  Further financial information can be obtained from the full
  financial report which is available free of charge, on
  request from the company. A copy may be requested by
  calling 1800 809482 (free call). Alternatively, both the full
  financial report and the concise report can be accessed
  via the internet at www.graincorp.com.au.




54   GrainCorp Annual Report 2002
Directors’ Declaration
for the year ended 30 September 2002                               GrainCorp Limited and Controlled Entities



Directors’ Declaration
The directors declare that in their opinion, the concise
financial report of the consolidated entity for the year ended
30 September 2002 as set out on pages 40 to 54 complies
with Accounting Standard AASB 1039: Concise Financial
Reports.

The financial statements and specific disclosures included in
this concise financial report have been derived from the full
financial report for the year ended 30 September 2002.

The concise financial report cannot be expected to provide
as full an understanding of the financial performance,
financial position and financing and investing activities of the
consolidated entity as the full financial report, which as
indicated in note 6, is available on request.

This declaration is made in accordance with a resolution of
the directors.




R.L. Greentree
Chairman

Sydney
4 December 2002




                                                                              GrainCorp Annual Report 2002   55
Independent Audit Report
                                                                to the members of GrainCorp Limited and its Controlled Entities



Audit Opinion                                                       The procedures included:
In our opinion, the concise financial report of GrainCorp           • testing that the information included in the concise
Limited for the year ended 30 September 2002, set out on              financial report is consistent with the information in the full
pages 40 to 55 complies with Australian Accounting                    financial report;
Standard AASB 1039: Concise Financial Reports.
                                                                    • selecting and examining evidence, on a test basis, as
This opinion must be read in conjunction with the following           required by auditing standards, to support amounts,
explanation of the scope and summary of our role as auditor.          discussion and analysis, and other disclosures in the
                                                                      concise financial report which were not directly derived
Scope and Summary of our Role
                                                                      from the full financial report. We did not examine every
The concise financial report - responsibility and content             item of available evidence;

The preparation and content of the concise financial report         • reviewing the overall presentation of information in the
for the year ended 30 September 2002 are the responsibility           concise financial report.
of the directors of GrainCorp Limited (the Company).
                                                                    Our audit opinion was formed on the basis of these

The auditor’s role and work                                         procedures.

We conducted an independent audit of the concise financial          Independence
report in order to express an opinion on it to the members of
                                                                    As auditor, we are required to be independent of the
the Company. Our role was to conduct the audit in
                                                                    Company and its controlled entities and free of interests
accordance with Australian Auditing Standards to provide
                                                                    which could be incompatible with integrity and objectivity. In
reasonable assurance as to whether the concise financial
                                                                    respect of this engagement, we followed the independence
report is free of material misstatement.
                                                                    requirements set out by The Institute of Chartered
We have also performed an independent audit of the full             Accountants in Australia, the Corporations Act 2001 and the
financial report of the Company for the financial year ended        Auditing and Assurance Standards Board.
30 September 2002. Our audit report on the full financial
                                                                    In addition to our statutory audit work, we were engaged to
report was signed on 4 December 2002, and was not
                                                                    undertake other services for the Company and its controlled
subject to any qualification. Our audit did not involve an
                                                                    entities. In our opinion the provision of these services has
analysis of the prudence of business decisions made by the
                                                                    not impaired our independence.
directors or management.

In conducting the audit of the concise financial report, we
carried out a number of procedures to assess whether in all
material respects the concise financial report is presented
fairly in accordance with Australian Accounting Standard
AASB 1039: Concise Financial Reports.                               PricewaterhouseCoopers




                                                                    P J Carney
                                                                    Partner

                                                                    Sydney
                                                                    4 December 2002




56   GrainCorp Annual Report 2002
Shareholder Information
as at 29 November 2002                                                                GrainCorp Limited and Controlled Entities



The Shareholder information set out below was applicable as at 29 November 2002.

A. Distribution of Ordinary Shares
            1 - 1,000            6,313
       1,001 - 5,000             2,929
     5,001 - 10,000                 698
   10,001 - 100,000                 410
 100,001 - and over                  27

                                10,377



B. Twenty Largest Shareholders
  The names of the twenty largest holders of each class of shares are listed below:
                                                                                               Ordinary Shares
                                                                                       Number of          Percentage of
                                                                                       shares held        issued shares
  1. Grain Growers Association Limited                                                   8,253,709              20.63
  2. NBT Pty Ltd                                                                         1,470,823               3.68
  3. DB Capital Pty Limited                                                               595,568                1.49
  4. Mr R Greentree & Mr B Harris                                                         528,640                1.32
  5. Victorian Farmers Federation Property Trust Ltd                                      499,967                1.25
  6. UBS Warburg Private Clients                                                          412,081                1.03
  7. Janvin Pty Limited                                                                   285,168                0.71
  8. Linkshore Pty Limited                                                                278,850                0.70
  9. Mr G Watsford                                                                        261,763                0.65
  10. Janvin Pty Limited                                                                  250,000                0.62
  11. Menegazzo Enterprises Pty Ltd                                                       241,783                0.60
  12. R & D Pastoral Pty Ltd                                                              230,950                0.58
  13. Mr P Menegazzo                                                                      227,867                0.57
  14. Rupert Baroona Pty Ltd                                                              200,000                0.50
  15. Ms N Der Sarkissian                                                                 174,464                0.44
  16. Mr P Cameron                                                                        173,401                0.43
  17. DB Capital                                                                          163,408                0.41
  18. Accounter Nominees Pty Ltd                                                          140,000                0.35
  19. J P Morgan Nominees Australia Limited                                               139,334                0.35
  20. Mr J Menegazzo                                                                      127,583                0.32
                                                                                       14,655,359                  37




                                                                                                 GrainCorp Annual Report 2002   57
Shareholder Information
as at 29 November 2002                                                                    GrainCorp Limited and Controlled Entities



C. Substantial Shareholders
  The following shareholder had a substantial shareholding in GrainCorp Limited shares as at 29 November 2002.

                                                                                                    Ordinary Shares
                                                                                            Number of          Percentage of
                                                                                            shares held        issued shares
     1   Grain Growers Association Limited                                                   8,253,709                20.63%



D. Voting Rights
The voting rights attached to each class of shares are set out below:

(a) Ordinary shares - on a show of hands every member present in person or by proxy shall have one vote and upon a poll each
  share shall have one vote.

(b) Foundation share:

  (i) No ordinary resolution can be passed without the affirmative role of the Foundation Share, except for the appointment of
  elected Directors;

  (ii) For a special resolution, the Foundation Share carried 75% of the total number of votes entitled to be cast.




58   GrainCorp Annual Report 2002
Enquiries                     Australian Stock Exchange
Nigel Hart                    GrainCorp shares are classified under the Miscellaneous
Company Secretary             Industrials Index (code GNC) and have been listed on the
                              Australian Stock Exchange (ASX) since 1998. Share prices
                              are reported in major daily newspapers and can be
GrainCorp Registered Office
                              accessed online at www.asx.com.au.
Level 10
51 Druitt Street
Sydney NSW 2000               Dividend Policy
Postal Address:               GrainCorp has a dividend payout ratio of 65 per cent.
PO Box A268
Sydney South NSW 1235
                              GrainCorp Website
                              www.graincorp.com.au - GrainCorp’s interactive website
Phone:       02 9325 9100
                              features the current Annual Report and full financials,
Freecall:    1800 809 482
                              plus interim financial reports. News and corporate
Fax:         02 9325 9180
                              information is regularly updated for shareholders. Details
                              of Board members and executive management team are
                              also provided.


                              Shareholder Inquiries
                              GrainCorp Limited shareholders requiring information
                              regarding their shareholdings should contact the Company’s
                              registry at:

                              Computershare Investor Services Pty Ltd
                              GPO Box 7045
                              Sydney NSW 1115
                              Telephone: 1300 855 080
                              Fax: (02) 8234 5050

                              GrainCorp sponsoring broker is:
                              ABN AMRO Morgans Limited
                              GPO Box 202
                              Brisbane QLD 4001
                              Telephone: 1800 777 946


                              Removal from Annual Report mailing list
                              Modernisation of annual reporting processes has meant that
                              some shareholders would prefer not to receive a hard copy
                              report. Shareholders can elect not to receive an Annual
                              Report (but still receive a Notice of Meeting and Proxy Form)
                              by contacting the share registry.




                              Design - The Hopkins System Pty Limited
                              Photography - Ted Sealey
                              Print Management - Intoprint
                                                                                                                                                                                                    Cobar




                                                                                                                                                                                                           Eua


                                                                                                                                                                                                           Lake
                                                                                                                                                                                      Hillston
                                                                                                                                                                                                              N



                                                                                                                                                                                                     Rankins
                                                                                                                                                                                   Merriwagga        Springs

                                                                                                                                                                                       Goolgowi
                                                                                                                                                                                             Tabbita
                                                                                                                                                                                           Tharbogang Y
                                                                                                                                                                                                   Griffith
                                                 Yelta

                                                                                                                                                                                                 Murrami
                                                                  Carwarp
                                                                                                                                                                     Willbriggie                       Yanco
                           ull
               r
             gu




                                                                                   Robinvale
                        rim




                                                                                                                     Balranald
          rin


                         r
      Me


                      We




                                                                                                                                                                                    Coleambally
                                                                                                     Kooloonong
                                                                                      Annuello
                        le




                                         ol




                                                                                                           Piangil
                   il



                                        bo
                yv




                                                     Ouyen
                a




                                        er
           rra




                                                                                      Manangatang
            ity




                                 rit Und
        n




                                                                      Mittyack
         Mu
     Pa




                                                                                                            Nyah West               Moulamein
                                                                                       Chinkapook
                                    a




                                                                                                                                                                           Morundah
                                   r
                                To




                                                          Tempy                                                                                                                                               B
                                                                                              Waitchie               Swan Hill
                                                                        Sea Lake                                                                                                                      Urana
                                 Patchewollock              Speed
                                                                                                  Ultima                                    Wakool
                                                                            Berriwillock          Meatian
                                                  Hopetoun                         Culgoa            Lalbert                                Caldwell          Deniliquin
                                                                  Lascelles                                                                                                              Oaklands
                                 Yaapeet                          Woomelang                                                   Kerang                                   Tocumwal        Wangamong
                                                                                                                                                Bunnaloo
                                                                                                           Quambatook                                       Mathoura          Berrigan      Sanger
                                  Rainbow                Beulah                                                                     Womboota
                                                                       Kinnabulla           Wycheproof         Gredgwin                                                                Warragoon
     Yanac                                                                                                                          Barnes Crossing
                Netherby                                     Brim           Birchip                                                                         Picola
                                       Jeparit                Lah                                                    Boort
                                                                                                                                                                                                      Yarraw
              ton




                                                  Watchem                                                  Borung                           Echuca
                                                                                                                          Mitiamo
          ice

                    a




                                               Warracknabeal
                                                    Massey         Charlton
                 niv
         rv




                                       Antwerp
     Se

               Ka




                                                  Litchfield
                                                   Sheep Hills                                                                          Rochester
                  Nhill                               Donald                                                                                                                        St James
       ur




                                                                                                                         Tandara
                                   ru ng
                m




                                   Dimboola Minyip Cope Cope
    lim

              ra




                                     ng
                                 Ge era




                                                                                                                                       Elmore
            Mi




                                                                                                                                                    Colbinabbin
   Lil




                                                                                                                        Raywood
                                   G




                                       Murtoa          Swanwater
                          Pimpinio                                                                      Bridgewater
    Carpolac                                    Burrum Sutherland                                                                                                               Dookie
                                                             St Arnaud                                                                   Goornong
           Goroke         Horsham     Dooen         Marnoo                                                                                            Murchison
                                                                                                                             ng




                  Natimuk                      Lubeck                                                                                                      East
                                                                                                                             ro
                                                                                                                        Ma




                                                                       Glenorchy                 Dunolly
                                        Noradjuha
Naracoorte                                                                                                               Moolort




                                                            Willaura
                                                                                                        Ballarat
                             Hamilton
                                                                                              Skipton
                                                                                 Westmere                               Sunshine
                                                                                                                                         Melbourne
                                                                                                 Berrybank

                                                                                                           Geelong
                    Portland

								
To top