Full Year Results for 2003 John AllanChief Executive John CoghlanDeputy Chief Executive and Group Finance Director Monday 1 March 2004

Full Year Results for 2003

John Allan Chief ExecutiveJohn Coghlan Deputy Chief Executive and Group Finance Director

Monday 1 March 2004

Agenda

Highlights and operating review John Allan

Financial review John Coghlan

Strategic update and outlook John Allan

Introduction

Highlights

Strong operating performance despite tough market

conditions- Turnover up 10%1 - Profit before tax up 13%1

- Earnings per share up 14%2

- Free cash flow of £193m

Annualised new contract gains exceed £700m

Strong second half performance

Invested over £110m3 in acquisitions in 2003

Highlights

1: at constant exchange rates

2: at constant exchange rates, pre goodwill amortisation, exceptional items and net return on pension schemes

3: excludes acquired debt of £24.4m

Financial summary

Highlights

Turnover - continuing operations

Operating profit1 - continuing operations

Interest

Profit before tax1

Basic earnings per share1

Pension adjusted earnings per share1

Dividend per share

Free cash flow2

Interest cover3

Balance sheet gearing4

5,068

154.4

(6.0)

148.4

34.1p

44.1p

24.7p

193.0

18x

23%

2003£m

2002£m

%change

%change

Year to 31 December at constant currency

Constant currency Actual

1: pre goodwill amortisation, exceptional items and net return on pension schemes

2: calculated at actual exchange rates

3: based on interest on net debt

4: excluding FRS17 net pension assets and liabilities

4,590

144.1

(12.1)

131.7

29.8p

37.6p

22.8p

176.3

12x

24%

+10.4

+7.1

-

+12.6

+14.4

+17.3

+8.3

+9.5

+8.3

+4.1

-

+9.7

+11.4

+14.2

+8.3

+9.5

Good progress gaining new business and reducing contract losses

Highlights

Record contract gains in 2003

Lower percentage of contract losses

Good mix between contract logistics

and freight management

0

100

200

300

400

500

600

700

800

2001 2002 2003

H1 H2

£m

2003

700

Net annualised gains 450

(250)

Contract Logistics

FreightMgt

% turnover 9%

210

240

8%

11%

£m

Annualised gains

Annualised losses

2002

625

350

(275)

8%

185

165

8%

7%

2003 2002

Contract wins continue to come from a broad spectrum of leading companies including…

Americas 150+ new contract

logistics gains Particularly good

performances in automotive, chemical, consumer, industrial, retail

Europe 100+ new contract

logistics gains Particularly good

performances in retail and consumer

Asia Pacific 45+ new contract

logistics gains Breakthroughs in

automotive and solid growth in consumer, healthcare, retail and technology

Operating review

Good second half performance

Strong second half contract logistics performance across all regions especially:- Americas (turnover up 24% to £425m, profitability up 39% to £22m) - improved performance in Continental Europe

Freight Management profitability in Continental Europe up 29% to £8m and Asia Pacific up 19% to £18m

Environmental made good progress in second half with profitability up 10% to £7.5m with margins up to 14.1%

At constant currency pre goodwill amortisation, exceptional

items and net return on pension schemes

Operating reviewOperating review

Turnover

Operating profit

Margins

2,678

82.7

3.1%

H22003

£m

H22002

£m%

change

%organicchange

2,423

73.6

3.0%

+10.5

+12.4

+8.5

+7.6

Profit Before TaxCausal change Year on Year

Operating review

0

10

20

110

120

130

140

150

Freight Management

2002PBT at

constant rates

Contract Logistics

Cory Environmental

2003PBT

Interest

£m

Freight ManagementEBIT £51m (£63m)Margin 2.3% (2.9%)

• Strong growth in second half with turnover advancing 11% and profit increasing 24%

• Strong performers included Hungary, Italy and The Netherlands

• Good growth in fashion retail and technology

• UK and Ireland’s margins improved on relatively flat turnover

Freight Management PerformanceAnalysis by Geography

Asia PacificTurnover: £645m +10%Profit: £34m +11% EMEA (including UK and Eire)

Turnover: £787m + 6%Profit: £14m -12%

AmericasTurnover: £804m - 3%Profit: £3m - 84%

• Strong margin growth despite capacity restrictions on selected routes and the impact of SARS

• Seafreight benefited from some switching of technology consumables from airfreight

• Particularly good performances in China, India, Korea and Taiwan

• First automotive gains with GM and Ford

• International operations made progress in profitability especially in Canada and Mexico

• Domestic performance held back by pricing pressure from competitive market and increases in deferred freight

• Road and rail broking volumes weak• Sea freight operations performed well

Operating review

All figures at constant currencies

AirfreightInternational airweight year on year growth v market

Exel Market1

Global airweight 1% 3%

Americas (4)% 2%

Europe (3)% 4%

Asia Pacific 6% 3%

Operating review

1: Based on analysis of published Airport data

Margin per kilo improved overall

Avoided chasing volume increases with aggressive pricing

Asia Pacific continued to gain market share

AirfreightUS Domestic Operations

US domestic markets remain challenging:

Overcapacity in network businesses and increased levels of deferred freight

Eagle: “continues to experience a shift in demand from overnight and second-day shipments toward deferred ground shipments.”

Menlo: “North American revenue per day fell by 6.8 percent on a 3.4 percent increase in weight per day and a 9.9 percent decline in yield that was due primarily to a product mix change to more second-day and deferred freight.”

Actions by Exel to improve performance are underway:

New CEO Freight Management Americas appointed

Further integration of domestic and international operations to match cost base to margin potential and to make costs more variable

- network reconfiguration programme to optimise branch locations- programme to price up or out low yield customers

Process has begun and will be largely complete by H2 2004

Operating review

12%

#2 in Asia Pacific(#1 excluding Japan)

#2 in Europe

#6 in the Americas

Exel’s major airfreight routesWeight flown on major routes

Operating review

Exel is now the world #2 in airfreight forwarding

12%2% 21%12%

17%

13%6%

5%

Seafreight

Growth market representing 15% of Exel’s Freight Management business in 2003 (13% in 2002)

Turnover up 22% to £314m (£258m in 2002)

Exel now manages >500,000TEU pa

Exel is winning market share: full container load (FCL) volumes up 18% year on year

Major increase in transpacific trade fuelled by volume growth out of China

New business wins include Lexmark, Compucom, Interceramic, Dal-Tile, Toto USA

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Q1 Q2 Q3 Q4

Exel Market

Market source: Drewry Shipping Consultants Ltd

Exel FCL % 2003 vs 2002 Growth

Operating review


Operating review

0

10

20

110

120

130

140

150

Freight Management

2002PBT at

constant rates

Contract Logistics

Cory Environmental

2003PBT

Interest

£m Contract LogisticsEBIT £89m (£67m)Margin 3.3% (2.9%)

Contract Logistics: EMEA

Strong performance across most sectors and geographies including:

Significant retail wins (House of Fraser, Marks and Spencer) and growth of non-food retail (50% pa over last 3 years)

Healthcare performing well aided by new business gains, including Bayer, Edwards Lifesciences and Tyco

Profit helped by improved performances in automotive (Spain and Sweden) and consumer activities (Belgium and Spain)

Improved profitability in technology offsetting volume reductions

France and Belgium underperformed - progress in 2004 expected

Operating review

2003

£m

20021

£m

%

change

% organic change

Turnover 1,789 1,590 12.5 10.4

Operating profit 41.4 32.8 26.2 25.0

Margins 2.3% 2.1%

1: Constant currency

Contract Logistics: The Americas

Solid performance from all sectors across the region aided by:

- Successful start up operations for Automotive (inc Goodyear),

Consumer (inc Coors, Johnson & Johnson and P&G) and Retail

(inc The Home Depot and Williams Sonoma)

- Improved performances at Chemical and Technology operations

Power now fully integrated and contributing to growth

New business wins include Continental, ExxonMobil, Goodyear Tire,

Hewlett Packard, Sears and The Home Depot

Operating review

2003 £m

20021

£m%

change% organic

change

Turnover 827 646 28.0 16.4


Margins 5.4% 4.8%


Contract Logistics: Asia Pacific

Steady growth overall, including strong performances in Australia,

New Zealand and Japan

Extended geographic reach with first operations in Indonesia

New business wins across all core sectors and geographies including

Agilent, Ericsson, Infineon, Mattel, Novartis and Texas Instruments

Named as a General Motors Supplier of the Year in recognition

of supply chain work done in Australia

Operating review

2003 £m

20021

£m%

change% organic

change

Turnover 105 90 17.1 17.1


Margins 3.0% 3.2%



Operating review

0

10

20

110

120

130

140

150

Freight Management

2002PBT at

constant rates

Contract Logistics

Cory Environmental

2003PBT

Interest

£m EnvironmentalEBIT £14m (£14m)Margin 12.8% (13.6%)

Environmental

Strong second half performance

- margins recovering to 14.1% in the last six months

Waste management operations achieved a solid result for the year:

- Increases in river-borne volumes and recycling activities partially offset loss of revenue from disposal of liquid and road borne activity at Mucking

Landfill operations helped by firming prices, contract expansion (Gloucestershire County Council) and new operations in Merseyside

Public Inquiry underway into establishing a waste to energy facility in Bexley, London. Report expected to be published later in 2004

Operating review

2003 £m

2002£m

% actual change

% organic change

Turnover 111 104 6.7 6.5

Operating profit 14.2 14.2 - (0.7)

Margins 12.8% 13.6%


Operating review

0

10

20

110

120

130

140

150

Freight Management

2002PBT at

constant rates

Contract Logistics

Cory Environmental

2003PBT

Interest

£m

Total GroupEBIT £154m (£144m) up 7%1

Margin 3.0% (3.1%)

1 based on constant currency

Financial review

John Coghlan

Deputy Chief Executiveand Group Finance Director

Profit and lossBefore goodwill and exceptional items

Financial review

Interest cover3 18x 12x

Dividend per share 24.7p 22.8p

2002

£m20031

£m

Operating profit

- Continuing 154.4 148.3

- Discontinued - (0.2)

154.4 148.1

(6.0) (12.8)Net interest

Profit before tax 148.4 135.3

%

Change

Earnings per share1 34.1p 30.6p

Year to 31 Decemberat actual exchange rates

1: pre goodwill amortisation, exceptional items and net return on pension schemes

2: as per basic earnings per share adjusted for non-cash pension service costs, after tax


Pension adjusted eps2 44.1p 38.6p

+8.3

+4.1

+11.4

+9.7

+14.2

Analysis of net interest and interest cover

2002

£m

2003

£m

(8.4) (12.8)

Financial review


Interest on net debt

Sirva - 2003 preference dividends 2.3

Net interest (6.0) (12.8)

Interest cover1 18x 12x

Other investment income 0.1


Earnings per share

2003

pence

34.1

10.0

44.1

2002

pence

30.6

8.0

38.6

Financial review


Underlying basic earnings per share

Impact of non cash pension costs

Pension adjusted earnings per share

Profit and loss

2002

£m

2003

£m

148.4 135.3

Goodwill (29.3) (25.6)

Exceptional items 0.1 0.9

Profit before tax 149.0 171.1

Financial review


Net return on pension schemes

(FRS 17 finance income)29.8 60.5

Underlying profit before tax

Exceptional items

2002

£m

2003

£m

(13.8)

Financial review

Year to 31 December at actual exchange rates

Loss on termination and disposals

(10.5)

Total exceptional items 0.1 0.9

Loss on disposal of fixed assets

Sirva: Profit on disposal at IPO and asset write back

Prior year arrears on preference dividends

18.1

6.3

0.9

Cash flow analysisYear to 31 December 2003

Financial review

0

50

100

150

200

250

300

£m

Op profit and

depreciation

£254m

WorkingCapital

£3.4m

80

100

120

140

160

180

200

O N D J F M A M J J A S O N D J F M A M J J A S O N D

Working capital management: 2001 – 2003 progress12 month moving average

2001 2002 2003

Further progress in 2004 will be more modest but underlying

positive performance should be sustained

£m

2001 £186m

2002 £136m

2003 £98m

Financial review

0

50

100

150

200

250

300

Op profit and

depreciation


Financial review

£m

£254m

WorkingCapital

£3.4m

Pensions

£42.1m

Principal UK pension schemes

Nil cash contributions to 2003

2003 FRS 17 service cost £42m

Agreed £10m p.a. cash contribution to 31/12/06 for

principal UK schemes

2004 FRS 17 pension service cost estimated at £48m

2004 net return on pension schemes estimated at £36m

(2003 : £29.8m)

Financial review


Financial review

0

50

100

150

200

250

300

£254.0m

WorkingCapital

£3.4m

Pensions

£42.1m

Sirva

£26.0m

Op profit and

depreciation£m

Sirva

c. $50m cash realised thus far

Further benefit to come - but caution on price and timing

Financial review

PBT Cash

Realised - Capital - Interest / dividends

36

160

210

30

135

179

Unrealised - estimated value at ($22/share)

14 14

$m


Financial review

0

50

100

150

200

250

300

£254.0m

WorkingCapital

£3.4m

Pensions

£42.1m

Sirva

£26.0m

NetCapex

£76.4m

Op profit and

depreciation£m

Capital expenditure

106.476.4Net capital expenditure

136%106%Gross capital expenditure as a percentage of depreciation

(30.1) (33.3)Disposal proceeds

136.5109.7Gross capital expenditure

2002

£m

2003£mYear to December 2003

106%74%

Net capital expenditure as a percentage of depreciation

Financial review

Cory Environmental 12%

Freight management 16%

Contract logistics 72%

Contract backed 65%

Total spend All contract logistics projects

Non-contract backed 35%


Financial review

0

50

100

150

200

250

300

£254.0m

WorkingCapital

£3.4m

Pensions

£42.1m

Sirva

£26.0m

NetCapex

£76.4m

Tax, Int.and other

£49.3m

Dividend

£68.4m

M&A

£110.5m

Free cash flow£193.0m

Net cash inflow £14.1m

Op profit and

depreciation£m

2003: significant movement in both US Dollar and Euro average rates

2004: guidance

PBT impact of a one cent change in:

US$ & US$ related £0.6m

€ £0.2m

Foreign exchange

Financial review

2003 Impact

rate £m

$ 1.64 (7.1)

€ 1.45 2.9

TOTAL (4.2)

In December 2003, we indicated a £4-5m YOY impact up to $1.70

Balance sheet

871.6

152.3Net debt

17.3Minority interests

(135.2)Provisions (inc. deferred tax)

702.0Shareholders’ funds

572.2Fixed assets

483.9Goodwill

871.6

26.2Working capital

21.7%Gearing

840.1

153.7

16.8

(111.4)

669.6

607.8

415.8

840.1

45.5

£m

23.0%

(129.2)Other net liabilities (158.9)

Financial review

53.7Net pensions assets 41.3

23.5%Gearing - excluding net pension assets and liabilities

24.5%

As at 31 December £m

2003 20021

1: restated

Financial review

Return on invested capital

200214.6%

200315.4%

Inclusion of non-contract backed operating leases does not change the trend

nor significantly reduce the overall return on assets

Strategic update and outlook

John AllanChief Executive

Strategic update

globalcoverage

integratedcapability

customerfocus

skilledpeople

consistentprocesses

localstrength

breadth ofsolutions

supply chainexpertise

operationalexcellence

Mission

To be the preferred supply

chain partner to our

customers

To create new value in

the supply chain for our

customers, employees

and shareholders through

consistently superior

delivery of innovative

business solutions

Exel’s revised strategy

Contract Logistics

and FreightManagement

Contract Logistics


Contract Logistics


EuropeMiddle East and Africa

Americas Asia Pacific

Global Freight Management

Global Sector Development teamsConsumer, Retail, Technology, Automotive and Healthcare

Global functionsFinance, IT, Human Resources, Marketing, Legal Services, Property and Risk

Strategic update

Exel’s organisation structure

Strategic focus

Balanced growth across key sectors and regions

Priorities

Regions

Major Asian economies including China

Central and Eastern Europe

Sectors

Non-food retail, particularly in the US

Services

Seafreight including consolidation services

Strategic update

Growth

Sustain strong organic revenue growth

Identify and execute strategically sound, sensibly priced acquisitions

Customer Relationships

Leverage and deepen relationships with key customers globally

Underperformers

Continue to fix underperforming business units inc. US freight mgt

Technology

Use technological developments to provide competitive advantage, reduce costs and create value for our customers

Talent

Attract, retain and develop management talent throughout Exel

2004 management priorities

Strategic update

Developing Exel’s growth strategy

Strategic update

Organic growth

opportunities from existing capabilities

Acquired growth

opportunities

Enhancing capabilities

through internal

investments

Increasing value created by… innovation in new services operational excellence delivery of leading IT skills

Accelerating growth through… increased customer

penetration developing new customers cross selling solution sets

Expanding through new… geographies capabilities customers and sectors


Strategic update

Acquired growth

opportunities


through internal

investments

Organic growth






Strategic update

Exel and Unilever have had a long-termrelationship: 1980’s first contracts in the UK and US 1999 re-engineered Brazilian supply

chain for Unilever home products 2002 European managed transport

service established

2003 has been a year of major developmentwith Unilever

April2003

June2003

Jan2004

June2003

2003 developments included: New operations in China, India and

Indonesia Opened major automated facility

in the UK New contract for UK facility

(opening in 2005) Additional operations in Brazil

Dec2003

Organic growth



through internal

investments


Strategic update



penetration developing new customers cross selling solution sets Acquired

growth opportunities


Acquisitions strategy

Over the last 18 months Exel has completed 6 major acquisitions totalling nearly £200m

Focus has been on developing sector capabilities and strengthening geographic presence

Company Sector Main operations in

Power Logistics Consumer and Retail US and UK

Eagle Freight Freight Management Southern Africa

Transbeynak Healthcare Turkey

Unidock's Healthcare Brazil

Cappelletti Consumer Italy

Pharma Logistics Healthcare Belgium, Italy

Fujitsu Logistics1 Technology Japan

Strategic update

1 Agreed in principle and not included in the above figures

Overview of Pharma Logistics

An Italian and Belgium pharmaceutical logistics company

Services include ambient and chilled storage, distribution, transport,

clinical trials

Italy- Leader in the Italian market- Eight operational locations in Italy handling ethical pharmaceuticals- 47 clients

Belgium- Handles 35% of all pharmaceutical and para-pharmaceutical

products distributed in Belgium- Key location in Huizingen- 50 clients

Strategic update

Strategic update

Belgium

Key location in Huizingen

Comprises 16,500 m2 warehouse space

Including 550m2 chilled storage

Additional 7,000m2 warehouse space in Turnhout

Typically 300,000 orders per annum

Italy

Eight operational locationsFour in Settala industrial park campusOne in Cerro al LambroOne at Peschiera BorromeoTwo in Rome – Pomezia and Via Collatina

Comprises 60,000m2 of warehouse space

includes 2,000m2 of chilled storage

Typically 800,000 orders per annum

http://images.google.com/imgres?imgurl=www.uol.com.br/intramed/congresso/sppt/Zambon.gif&imgrefurl=http://www.uol.com.br/intramed/congresso/sppt/ala_ats/trabalho_bras17.htm&h=158&w=296&prev=/images%3Fq%3Dzambon%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN

http://www.chiron.com/index.html

Japan presents a significant opportunity

Second largest economy in the world

Japan holds the commanding heights of global manufacturing- World’s top 24 machine tool manufacturers

- 16 Japanese, 4 European, 4 American- 17 of the world’s top 18 industrial robot manufacturers are Japanese

Logistics supply chain management now a high priority for Japanese companies

Distribution market estimated at US $400 bn p.a. (all industries)

3PL as a percentage of total distribution market still very low by comparison with Europe and USA (3%)

Economy coming out of recession

Strategic update

Strategic update

Exel’s strategy for Japan

Freight management – organic growth

Contract logistics – acquisition is preferred route to accelerate growth from existing modest base

Japanese M&A market- opportunities very limited- long gestation period- often < 100% available (minority stakes)- no standalone 3PL opportunities (all in-house logistics functions)

2004+ mission: establish the Fujitsu logistics operation as a leading supply chain platform for the technology sector in Japan

Strategic update

Essentially a 4PL using contracted suppliers for services required by

Fujitsu

624 employees/1,050 contractors

Approximately 190,000m² of storage throughout Japan (56 sites)- Factory Dedicated (23), Multi-User DCs (14), Sales Sites (19)

50% of revenue is derived from domestic road transport

630 vehicles of which 10 are owned

Approx 100% of revenue derived from Fujitsu companies

Overview of Fujitsu

RinkuRinku Center (RIL)- 24-hour CCTV- Air-conditioned

IchikawaIchikawa Logistics Center (ILC)- Air-conditioned- Refrigerated- Multi-user

FunabashiFunabashi Logistics Center (FLC)- Up to 3600m² of ventilated and

racked space

FunabashiBusiness Logistics Center (BLC)- 24-hour CCTV - Equipped a high security, steel

cage for high value cargo

NaritaNarita Logistics Center (NLC)- lair-conditioned- 24-hour CCTV - Equipped with high

security, steel cage for high value cargo

- TAPA certified

Strategic update

Exel’s contract logistics facilities in Japan

Strategic update

Fujitsu’s infrastructure

● Distribution centre

▲ Sales base

■ Factory base

Hokkaido

Tohoku

Hokuriku

Osaka

Chugoku

Shikoku

Kyusyu

Hokkaido/Tohoku

- Sapporo Butsuryu Centre ●

- Sendai Butsuryu Centre ●

- Fukushima Butsuryu Centre (Desktop PC) ■

- Kita-Kantsuo Butsuryu Centre (Oyama) ■

- Nasu Butsuryu Centre ■

- Niigata Butsuryu Centre ■ ▲

- Tsubame Butsuryu Centre ■ ▲

Metropolitan

- Tokyo Butsuryu Centre ●

- Narita Butsuryu Centre ●

- Kawasaki Butsuryu Centre ●

- FS Jigyoubu Kawasaki Butsyuryu Centre ●

- Matsudo Butsuryu Centre ▲

Metropolitan

Kyushu

- Fukuoka Butsuryu Centre ●

- SCM Centre Miyazaki ■

Chugoku/Shikoku

- Shimane Butsuryu Centre (Laptop) ■

- Hiroshima Warehouse ▲

- Takamatsu Terminal ▲

- Akashi Factory (CRT) ■ ●

Osaka

- Takatsuki Butsuryu Centre ●

Chubu/Hokuriku

- Nagano ■ ▲

- Hokuriku Butsuryu Centre (Ishikawa-ken) ■ ●

- Nagoya Butsuryu Centre ●

- Hamamatsu Butsuryu Centre ▲

Chubu

●

●

■

▲ ■

●

■

▲ ■

■

▲

▲●

■

● ■

■

●

■▲■

●●

● ■

▲


Strategic update

Organic growth


Acquired growth

opportunities





through internal

investments


Radio Frequency Identification (RFID)

Strategic update

RFID, the ‘tagging’ of products, trucks, containers etc., will potentially have a significant impact on supply chain management

Major users mandating the use of RFID technology include:- Wal*Mart, Tesco, Metro, Target and the US Department of Defence

Totes are controlled during manufacturing by RFID tags

Tags are built into the individual items

On dispatch the items are scanned onto a vehicle fitted its own RFID tag

At RDC vehicle is automatically sent to right dock

Automatic control of sortation and picking at RDC

Tags read on dispatch to update status

The delivery vehicle pays road and bridge tolls automatically

Store stock is automatically updated on receipt

On-shelf readers monitor stock and drive replenishment from back-room and RDCs

Customer cart gets read at cashier for payment

Tags can also act as security deviceRefrigerator monitors

stock and reorders items

Courier uses RFID wrist band/key fob for vehicle locks

Waste is sorted and administrated

Strategic update

RFID has the potential to be used throughout the supply chain

Radio Frequency IDentification (RFID)

Strategic update

RFID, the ‘tagging’ of products, trucks, containers etc., will potentially have a significant impact on supply chain management

Major users mandating the use of RFID technology include:- Wal*Mart, Tesco, Metro, Target and the US Department of Defence

Exel’s has committed resources to develop a leading position:- Established a cross-functional global team to evaluate RFID

implications and global opportunities- Customers will need considerable support to manage implementations- Launched a number of trials with customers:

- Selfridges (implications for UK logistics)- House of Fraser (global supply chain management challenges)

Outlook

Growth opportunities remain strong

The translation of US dollar earnings will almost

inevitably have a negative impact on reported results

However, providing emerging trends in world economic

conditions remain positive, we believe Exel is well

positioned to make good underlying turnover and profit

progress in 2004

Conclusions

Spread and Balance of ActivitiesTurnover and operating profit by geography

* includes Africa & Middle East

Turnover Operating profit

United Kingdom& Ireland

32%

Asia Pacific

15%

Americas

33%Continental

Europe*

20%

Additional information

Based on 2003 full year information


27%

Asia Pacific

27%

Americas

33%Continental

Europe*

13%

Spread and Balance of ActivitiesTotal logistics by geography and sector


Geographic Balance Sector Focus

Other

4%Consumer

26%

Retail

19%Healthcare

5%

Technology

22%

Chemical

5%Automotive

12%


32%

Asia Pacific

15%

Americas

33%Continental

Europe*

20%

Industrial

7%



Spread and Balance of ActivitiesFreight management by geography and sector



Other

7% Consumer

21%

Retail

9%

Healthcare

5%Technology

35%

Chemical

3%

Automotive

8%


10%

Asia Pacific

29%

Americas

36%

ContinentalEurope*

25%

Industrial

12%



Spread and Balance of ActivitiesContract logistics by geography and sector


Other

1%

Consumer

30%

Retail

28%

Healthcare

5%

Technology

11%

Chemical

7%Automotive

16%


51%

Asia Pacific

4%Americas

30%

ContinentalEurope*

15%

Industrial

4%




Segmental analysis as reported

Pension accounting

Year ended New Increment Movement in Year 31.12.02 acquisitions on 2002 discontinued ended(restated) Exchange 2003 acquisitions operations 31.12.03

£m £m £m £m £m £m % £m

Europe, Middle East & AfricaContract logisticsUK & Ireland 31.1 0.4 - - - 3.6 11.4 % 35.1Continental Europe & Africa 0.6 0.7 0.4 - - 4.6 100+ % 6.3

31.7 1.1 0.4 - - 8.2 25.0 % 41.4Freight managementUK & Ireland 2.6 0.1 - - - 0.2 7.4 % 2.9Continental Europe & Africa 11.7 1.7 0.7 - - -2.8 -20.9 % 11.3

14.3 1.8 0.7 - - -2.6 -16.1 % 14.2

Europe, Middle East & Africa 46.0 2.9 1.1 - - 5.6 11.5 % 55.6

AmericasContract logistics 34.5 -3.3 0.7 4.6 - 8.0 25.6 % 44.5Freight management 17.6 -1.6 - - - -13.4 -83.8 % 2.6

52.1 -4.9 0.7 4.6 - -5.4 -11.4 % 47.1Asia Pacific

Contract logistics 2.7 0.2 - - - 0.2 6.9 % 3.1Freight management 33.3 -2.4 - - - 3.5 11.3 % 34.4

36.0 -2.2 - - - 3.7 10.9 % 37.5Total Logistics

Contract logistics 68.9 -2.0 1.1 4.6 - 16.4 24.5 % 89.0Freight management 65.2 -2.2 0.7 - - -12.5 -19.8 % 51.2

134.1 -4.2 1.8 4.6 - 3.9 3.0 % 140.2

Environmental 14.2 - 0.1 - - -0.1 -0.7 % 14.2

Continuing operations 148.3 -4.2 1.9 4.6 - 3.8 2.6 % 154.4

Discontinued operations -0.2 - - - 0.2 - - -

Total 148.1 -4.2 1.9 4.6 0.2 3.8 2.6 % 154.4

Organic change

Segmental analysis with FRS17 service costs shown separately

Pension accounting

Year ended New Increment Movement in Year31.12.02 acquisitions on 2002 discontinued ended(restated) Exchange 2003 acquisitions operations 31.12.03

£m £m £m £m £m £m % £m

Europe, Middle East & AfricaContract logisticsUK & Ireland 56.5 0.4 - - - 9.9 17.4 % 66.8Continental Europe & Africa 0.7 0.7 0.4 - - 4.7 335.7 % 6.5

57.2 1.1 0.4 - - 14.6 25.0 % 73.3Freight managementUK & Ireland 6.1 0.1 - - - 0.3 4.8 % 6.5Continental Europe & Africa 12.2 1.7 0.7 - - -2.7 -19.4 % 11.9

18.3 1.8 0.7 - - -2.4 -11.9 % 18.4

Europe, Middle East & Africa 75.5 2.9 1.1 - - 12.2 15.6 % 91.7

AmericasContract logistics 34.8 -3.3 0.7 4.6 - 8.1 21.3 % 44.9Freight management 19.1 -1.6 - - -13.3 -64.3 % 4.2

53.9 -4.9 0.7 4.6 - -5.2 -8.8 % 49.1Asia Pacific

Contract logistics 2.7 0.2 1.1 - - 0.2 6.9 % 3.1Freight management 34.2 -2.4 0.7 - - 3.7 10.1 % 35.5

36.9 -2.2 1.8 - - 3.9 10.0 % 38.6Total Logistics -

Contract logistics 94.7 -2.0 1.1 4.6 - 22.9 23.7 % 121.3Freight management 71.6 -2.2 0.7 - - -12.0 -16.3 % 58.1

166.3 -4.2 1.8 4.6 - 10.9 6.4 % 179.4

Environmental 15.5 - 0.1 - - 0.2 1.3 % 15.8

FRS17 -33.5 - - - - -7.3 -21.8 -40.8

Continuing operations 148.3 -4.2 1.9 4.6 - 3.8 2.6 % 154.4

Discontinued operations -0.2 - - - 0.2 - - -

Total 148.1 -4.2 1.9 4.6 0.2 3.8 2.6 % 154.4

Organic change

Documents

Full Year Results for 2003 John AllanChief Executive John CoghlanDeputy Chief Executive and Group Finance Director Monday 1 March 2004