Landmark Overview Ag Inputs – Trends and Challenges

July 2011

Andrew Duperouzel – General Manager Procurement

2

Landmark Business Overview

Landmark is one of Australia’s largest providers of products and services to the rural sector with AUD$5.5b in turnover

• Specialising in merchandise, fertiliser, farm services, wool and livestock trading, insurance and real estate.

• Employing around 1,700 employees (1550 in rural Australia) servicing more than 100,000 customers through a national network of 350 Landmark Stores.

4 4

Agrium

Industrial Customers

Specialty (Turf,

Home & Garden)

Growers

15%

Retail Customers

End Use Customers

77%

Distribution and Storage Business Units and Acquisitions

8% sales to AGU Retail

Agrium Wholesale: $3-billion sales*

Royster, ConAgra, ADM retail, and UAP

Over $3 billion invested

Agrium Retail: $6-billion sales*

2.5 million tonne

storage capacity

0.11 million tonne

storage capacity

Hanfeng, Pursell, NuGro, ESN

Over $280 million invested

Agrium Advanced

Technologies: $0.3-billion sales*

Purchase for Resale

2.3 million tonne

storage capacity

Potash expansion, CMF, Egyptian Nitrogen

Over $400 million invested

13% sales to AGU Retail

*2009 Net Sales

5

Our Brand

The foundation of our branding equals our values of integrity + accountability + customer focus + teamwork being the foundation for our decision-making and behaviour

We are Australia’s leading rural service business because of our:

• Unrivalled expertise

• Enduring relationships with customers

• Commitment to and from our people

• Unsurpassed geographic coverage

• Extensive range of products and services

• Continuously innovative solutions

• Relationships with suppliers

• Unwavering commitment to the communities we serve

6

LIVESTOCK

1.6M Cattle 7.7M Sheep

$1.8B Turnover

WOOL

350,000 Bales

$420M Turnover

REAL ESTATE

$1.00B Turnover

INSURANCE

$178M Premiums

$1.0B Turnover

MERCHANDISE

1.0M Tonnes

$612M Turnover

FERTILISER

~ 1,700 employees

>350 ‘touch-points’ with Clients

202 Corporate Stores 88 Franchise & 4 JVs 56 Wholesale Members

Ag Chemical,

Fencing,

Animal Health

AWH:

50% JV

Logistics &

Warehousing

LGE:

51% JV

Landmark is a diversified Rural Services company

PROPRITARY

PRODUCTS

Ag Chemical &

Horticulture

Fertilizer

PROPRIETARY

PRODUCTS

$45M Turnover

7

Procurement Structure

General Manager – Andrew Duperouzel

Ag Chem Animal Health Seed GM / F / W Fert

Wholesale

Horticulture

Data Integrity

Landmark Rewards / Marketing

FERTILISER

9

Australia’s Total Fertiliser Consumption

Australia makes up less than 2% of the world’s fertiliser consumption,

and imports approximately 48% of its fertiliser requirements

Source: FIFA

Total fertiliser nutrient consumption (N + P2O5 + K2O)

Source: IFA

Other

7%

Asia

54%

America

23%

Africa

2%

Europe

12%

Oceania

2%

0%

20%

40%

60%

80%

100%

Product Maufactured

in Australia

0.0% 37.5% 66.9% 52.0%

Imported Product 100.0% 62.5% 33.1% 48.0%

Potassium Nitrogen Phosphorus Total

10

Major commodity straights accounted for approximately 90% of the market in 2008

0

200

400

600

800

1000

1200

AP's Urea SSP / TSP SOA Anhydrous

Ammonia

MOP

Domestic

Imported

Source: FIFA

11

Key Points

Supply and Price Aust are < 2% of total Global supply lumped in with Oceania

•This makes AUS price takers given we import 48% of our requirement

•Supply chain has transitioned to a ‘just in time’ model with stock management being the highest priority

•Supply chain ownership tightening with committed contractual off take from Manufacturer => Wholesaler => Retailer => Customer

•Communication key to managing position – Global relationship channel

Trends

•Fertiliser is in global demand

•Anticipate price volatility

•Be informed

CROP CHEMICAL

13

Crop Protection by sector: Broadacre is dominant

Rice

0%

Sugarcane

4%

Seed Treatments

3%Other

5%

Pasture

3%

Horticulture

16%

Cotton

4%

Broadacre

65%

14

Chemical volumes are still high (however lower than prior year) with prices 19% higher than prior year (despite the higher AUD)

Chemical Volume Invoiced

(2008-2011 May YTD, million L/kg)

Month of Landmark Financial Year

Ch

emic

al V

olu

me

Invo

ices

(m

illio

n L

/kg)

Oct Nov Dec Jan Feb Mar Apr May

Chemical Average Price

(2008, 2009 and 2010/ 2011 YTD, $)

30%

2008 2009

2010

17%

Glyphosate volumes are up 17% at May YTD, but prices are down 57% over the same period

Chemical volumes are up 12% on 2009 but are down 5% on 2010. Prices are up19% on 2010 but

still below 2008/09 levels

2008 2009 2010 YTD 2011 YTD

2011 12%

-5%

15

Whilst chemical prices in general are higher Glyphosate prices remain flat (and well down on prior levels. Volumes are 13% down on prior year

Glyphosate Volume Invoiced

(2008-2010/ 2011 May YTD, million L/kg)

Month of Landmark Financial Year

Gly

ph

osa

te V

olu

me

Invo

ices

(m

illio

n L

/kg)

Oct Nov Dec Jan Feb Mar Apr May

Glyphosate Average Price

(2008, 2009 and 2010/2011 YTD, $)

35%

57%

2008

2009

2010

32%

53%

Glyphosate volumes are up 53% at May YTD, but prices are down 57% over the same period

Glyphosate volumes are still high 40% vs 53% at May YTD, but prices are down 35% over the same

period

2008 2009 2010 YTD 2011 YTD

2011

40%

-13%

16

Key Point

What Landmark consider before purchasing

Crop Chemicals

• Supplier Selection/Supply continuity and availability

• Quality Control / Packaging

• Competitive Offer

• New product capability (Not just me too)

Trends

• Prices have bottomed out – slight rises anticipated

• Stock holdings minimised to avoid carryover exposure

17

Key Items

New Technology and Products

• Critical for sustainability of Australian Agriculture

• Very few suppliers have this capability

• Innovation with existing chemistry is evolving

• GM Cropping

QUESTIONS