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Brambles Industries (BI.)

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Wednesday 25 February, 2004

Brambles Industries

Interim Results - Part 4

Brambles Industries PLC
25 February 2004



Brambles
========

COMBINED PROFIT AND LOSS ACCOUNT (unaudited)
for the half-year ended 31 December 2003

                          First half                             First half                   Full year
                           2004                                     2003                        2003
               -------------------------------------  --------------------------------------------------
               Before                                        Before
               goodwill            Goodwill                 goodwill      Goodwill
               amortisation    amortisation             amortisation  amortisation
               & exceptional  & exceptional            & exceptional & exceptional
                       items          items      Total         items          items       Total      Total
                  £ millions     £ millions £ millions    £ millions     £ millions  £ millions £ millions
               -------------------------------------  --------------------------------------------------
TURNOVER
(including share 
of joint ventures
and associates)
- Continuing 
operations           1,545             -      1,545         1,412             -      1,412      2,909
- Discontinued 
operations               4             -          4            62             -         62         88
               -------------------------------------  --------------------------------------------------
                     1,549             -      1,549         1,474             -      1,474      2,997
Less share of
joint ventures         (26)            -        (26)          (15)            -        (15)       (31)
Less share of
associates             (23)            -        (23)          (26)            -        (26)       (51)
               -------------------------------------  --------------------------------------------------
GROUP TURNOVER       1,500             -      1,500         1,433             -      1,433      2,915

OPERATING PROFIT
Continuing 
operations
before goodwill
amortisation           162             -        162           173             -        173        347
and exceptional
items
Goodwill
amortisation             -           (18)       (18)            -           (16)       (16)       (34)
Exceptional
items                    -           (47)       (47)            -            (2)        (2)       (59)
               --------------------------------------  -------------------------------------------------
Continuing
operations             162           (65)        97           173           (18)       155        254

Discontinued             1             -          1             5             -          5         10
operations     --------------------------------------  -------------------------------------------------
GROUP OPERATING
PROFIT                 163           (65)        98           178           (18)       160        264

Share of operating
profit of:
- Joint ventures         5             -          5             4             -          4          7
- Associates             2             -          2             2             -          2          5
               --------------------------------------  -------------------------------------------------
TOTAL OPERATING
PROFIT                 170           (65)       105           184           (18)       166        276

EXCEPTIONAL ITEMS
Net profit/
(loss) on sale
of discontinued
operations               -            27         27             -            13         13         (1)
DLC costs -
continuing
operations               -             -          -             -             -          -         (2)
                -------------------------------------  -------------------------------------------------
                         -            27         27             -            13         13         (3)
PROFIT BEFORE
INTEREST AND
TAXATION               170           (38)       132           184            (5)       179        273
Net interest
payable:
- Group                (38)            -        (38)          (41)            -        (41)       (81)
- Share of
joint ventures
and associates          (1)            -         (1)           (1)            -         (1)        (2)
                -------------------------------------  ------------------------------------------------
                       (39)            -        (39)          (42)            -        (42)       (83)
                -------------------------------------  -------------------------------------------------
PROFIT ON
ORDINARY
ACTIVITIES
BEFORE TAX             131           (38)        93           142            (5)       137        190
                -------------------------------------  -------------------------------------------------
Tax on profit
on ordinary
activities             (40)            -        (40)          (45)           (2)       (47)       (72)
                -------------------------------------  -------------------------------------------------
PROFIT ON
ORDINARY
ACTIVITIES
AFTER TAX               91           (38)        53            97            (7)        90        118
                -------------------------------------  -------------------------------------------------

Equity
minority
interests                -             -          -            (1)            -         (1)        (1)

PROFIT
ATTRIBUTABLE
TO PARENT
COMPANIES'
SHAREHOLDERS            91           (38)        53            96            (7)        89        117
                -------------------------------------  ------------------------------------------------

Equity
dividends paid
and proposed           (71)            -        (71)          (60)            -        (60)      (127)
                -------------------------------------  ------------------------------------------------

TRANSFER
(FROM)/TO
RESERVES                20           (38)       (18)           36            (7)        29        (10)
                -------------------------------------  ------------------------------------------------
Basic earnings
per share
(pence)                5.4          (2.3)       3.1           5.7          (0.4)       5.3        6.9
Diluted
earnings per
share (pence)          5.4          (2.3)       3.1           5.7          (0.4)       5.3        6.9
                -------------------------------------  ------------------------------------------------

                                        15

Brambles

COMBINED BALANCE SHEET (unaudited)
as at 31 December 2003

                                              December    December        June
                                                  2003        2002        2003
                                            £ millions  £ millions  £ millions
                                            -----------------------------------
                                                    
                                             
FIXED ASSETS
Intangible assets                                  476         490         507
Tangible assets                                  2,341       2,266       2,392
                                            -----------------------------------

                                                 2,817       2,756       2,899
Investments:
Joint ventures:
- Share of gross assets                             71          58          81
- Share of gross liabilities                       (46)        (25)        (42)
                                            -----------------------------------
                                                    25          33          39
Associates                                          40          34          21
Other investments                                   10          16          14
                                            -----------------------------------

Total investments                                   75          83          74
                                            -----------------------------------

TOTAL FIXED ASSETS                               2,892       2,839       2,973
                                            -----------------------------------

CURRENT ASSETS
Stocks                                              28          44          32
Debtors                                            662         715         697
Cash at bank and in hand                            61          68          45
                                            -----------------------------------

                                                   751         827         774
                                            -----------------------------------
CREDITORS: amounts falling due within one
year:
Borrowings                                         (39)       (122)        (49)
Creditors                                         (470)       (394)       (500)
Taxation and dividends payable                    (105)       (117)       (106)
                                            -----------------------------------

                                                  (614)       (633)       (655)
                                            -----------------------------------

NET CURRENT ASSETS                                 137         194         119
                                            -----------------------------------

TOTAL ASSETS LESS CURRENT LIABILITIES            3,029       3,033       3,092

CREDITORS: amounts falling due beyond one
year:
Borrowings                                      (1,580)     (1,634)     (1,603)
Provisions for liabilities and charges            (271)       (266)       (299)
                                            -----------------------------------

NET ASSETS                                       1,178       1,133       1,190
                                            -----------------------------------

CAPITAL AND RESERVES
Share capital                                      545         456         527
Share premium account                               50          50          50
Other reserves                                      83          99          83
Combined profit and loss account                   495         523         525
                                            -----------------------------------
Equity shareholders' funds                       1,173       1,128       1,185
Equity minority interests                            5           5           5
                                            -----------------------------------

                                                 1,178       1,133       1,190
                                            -----------------------------------
                                        16

Brambles

COMBINED STATEMENT OF TOTAL
RECOGNISED GAINS AND LOSSES (unaudited)
for the half-year ended 31 December 2003

                                               First half  First half  Full year
                                                     2004        2003       2003
                                                £ millions £ millions £ millions
                                               ---------------------------------

Profit attributable to parent companies'              53         89        117
shareholders
Exchange translation differences                      (1)       (31)        60
                                               ---------------------------------

Total recognised gains for the period                 52         58        177
                                               ---------------------------------




RECONCILIATION OF MOVEMENTS IN
COMBINED SHAREHOLDERS' FUNDS (unaudited)
for the half-year ended 31 December 2003

                                                First half First half  Full year
                                                      2004       2003       2003
                                                £ millions £ millions £ millions
                                                --------------------------------
Combined shareholders' funds at the
beginning of the period                            1,185      1,129      1,129

Profit attributable to parent companies'              53         89        117
shareholders
Ordinary dividends paid and proposed                 (71)       (60)      (127)
Issue of ordinary shares, net of expenses              -          1          2
Reinstatement of goodwill due to sale of               5          -          2
businesses
Shares to be issued                                    2          -          2
Exchange translation difference:
- Brambles Industries Limited share
capital                                               16        (22)        48
- Other                                              (17)        (9)        12
                                                --------------------------------

Net (decrease)/increase in
combined shareholders' funds                         (12)        (1)        56
                                                --------------------------------

Combined shareholders' funds at the
end of the period                                  1,173      1,128      1,185
                                                --------------------------------

                                        17

Brambles


COMBINED CASH FLOW STATEMENT (unaudited)
for the half-year ended 31 December 2003

                                              First half  First half   Full year
                                                    2004        2003        2003
                                              £ millions  £ millions  £ millions
                                              ----------------------------------

Net cash inflow from operating activities            330        258        684
                                              ----------------------------------

Dividends received from joint ventures and             2          1          7
associates                                    ----------------------------------

Interest received                                      3          2          4
Interest paid                                        (37)       (42)       (83)
Interest element of finance lease
rentals                                               (1)        (1)        (1)
                                              ----------------------------------

Returns on investments and servicing of
finance                                              (35)       (41)       (80)
                                              ----------------------------------

Taxation paid                                        (41)       (74)      (131)
                                              ----------------------------------

Purchase of tangible fixed assets                   (222)      (242)      (456)
Sale of tangible fixed assets                         19         22         45
Investment loans and other financial                   1          1          2
investments                                   ----------------------------------

Capital expenditure and financial
investment                                          (202)      (219)      (409)
                                              ----------------------------------

Purchase of subsidiary undertakings and
associates                                           (27)       (44)      (106)
Net cash acquired with subsidiary                      -          2          3
undertakings
Sale of businesses                                    31         39         50
                                              ----------------------------------

Acquisitions and disposals                             4         (3)       (53)
                                              ----------------------------------

Equity dividends paid to shareholders of the
parent companies                                     (69)       (61)      (125)
                                              ----------------------------------

Net cash outflow before management
of liquid resources and financing                    (11)      (139)      (107)
                                              ----------------------------------

Management of liquid resources                        (4)        (2)        (1)
                                              ----------------------------------

Net proceeds from share issues                         -          1          2
Increase in borrowings                                28        143        118
Capital element of finance lease
rentals                                               (2)        (1)        (6)
                                              ----------------------------------

Financing                                             26        143        114
                                              ----------------------------------

Increase in cash                                      11          2          6
                                              ----------------------------------

                                        18

Brambles

MOVEMENT IN COMBINED NET DEBT (unaudited)
for the half-year ended 31 December 2003

                                          First half   First half    Full year
                                                2004         2003         2003
                                          £ millions   £ millions   £ millions
                                          --------------------------------------

Increase in cash                                  11            2            6
Increase in borrowings                           (28)        (143)        (118)
Capital element of finance lease                   2            1            6
rentals
Currency variations                               49           38           51
Increase/(decrease) in liquid resources            4            2           (1)
Other non-cash changes                            12           (5)          35
Subsidiaries acquired and sold                    (1)          (2)          (5)
                                          --------------------------------------

Total movement                                    49         (107)         (26)
                                          --------------------------------------

Net borrowings at beginning of period         (1,607)      (1,581)      (1,581)
                                          --------------------------------------

Net borrowings at end of period               (1,558)      (1,688)      (1,607)
                                          --------------------------------------



RECONCILIATION OF OPERATING PROFIT TO NET
CASH INFLOW FROM OPERATING ACTIVITIES (unaudited)
for the half-year ended 31 December 2003

                                         First half  First half    Full year
                                               2004        2003         2003
                                         £ millions  £ millions   £ millions
                                                    
                                         ------------------------------------

Group operating profit                            98         160         264

Depreciation charge                              168         157         316
Goodwill amortisation and impairment              37          16          34
Decrease/(increase) in working capital            20         (68)         27
(Decrease)/increase in provisions                 (7)        (21)          1
Other                                             14          14          42
                                         ------------------------------------

Net cash inflow from operating                   330         258         684
activities                               ------------------------------------

                                        19

Brambles

COMBINED SEGMENTAL ANALYSIS (unaudited)
for the half-year ended 31 December 2003

Brambles activities are managed along global business lines. The material
business segments are CHEP (Pallet and Container Pooling), Cleanaway (Waste
Management), Recall (Information Management) and Brambles Industrial Services.
The Regional Businesses segment comprises Interlake, TCR and Eurotainer. The
'Discontinued' segment comprises Heavy Contracting, FM Repairs and Maintenance,
Shipping and Meineke.

The 2003 interim report did not include Meineke or FM Repairs and Maintenance in
the discontinued segment. To enable meaningful comparison, the first half of
2003 has been amended accordingly. The impact of redefining the business
segments is as follows: (i) Turnover - Cleanaway £(31) million; Regional
Businesses £(10) million; Discontinued £41 million; and (ii) Operating profit -
Regional Businesses £(3) million; Discontinued £3 million.

               Turnover                         Comparable operating profit 1

             First half First half  Full year First half First half   Full year
                   2004       2003       2003       2004       2003        2003
             £ millions £ millions £ millions £ millions £ millions  £ millions

By business segment
CHEP                694        620      1,284         96        103         199
Cleanaway           518        474        964         43         50          96
Recall              137        118        258         21         19          49
Brambles Industrial 144        137        282         17         13          28
Services
Regional Businesses  52         63        121          -          3           4
Corporate             -          -          -         (8)        (9)        (17)
              ------------------------------------------------------------------
Total continuing   1,545      1,412      2,909        169        179        359
businesses
Discontinued          4         62         88          1          5          10
              ------------------------------------------------------------------

                  1,549      1,474      2,997        170        184         369
              ------------------------------------------------------------------

By geographical 
origin
Europe              817        783      1,597         83         85         181
Americas            427        426        861         39         58         104
Australia /         263        235        473         39         33          68
New Zealand
Rest of World        42         30         66          9          8          16
              ------------------------------------------------------------------

                  1,549      1,474      2,997        170        184         369
                           

1 Comparable operating profit is profit before interest, tax, goodwill
amortisation and exceptional items (EBITA before exceptionals). The difference
between comparable operating profit and profit before interest and tax is due to
goodwill amortisation and exceptional items. Goodwill amortisation by segment is
CHEP £1 million (2003: £nil), Cleanaway £7 million (2003: £7 million), Recall
£7 million (2003: £5 million), Brambles Industrial Services £2 million (2003:
£3 million), Regional Businesses £1 million (2003: £1 million). Exceptional
items by segment are CHEP £(23) million (2003: £(2) million), Cleanaway £(4)
 million (2003: £nil), Brambles Industrial Services £(3) million (2003: £nil),
Regional Businesses £(20) million (2003: £nil) and Discontinued £30 million
(2003: £13 million).

                                        20

Brambles

COMBINED SEGMENTAL ANALYSIS (unaudited) continued
for the half-year ended 31 December 2003

                 Profit before interest and tax          Non operating
                  (after goodwill amortisation         exceptional items
                      and exceptional items)

             First half First half   Full half First half First half  Full year
                   2004       2003        2003       2004       2003       2003
             £ millions £ millions  £ millions £ millions £ millions £ millions

By business segment
CHEP                 72        101        148          -          -          -
Cleanaway            32         43         76          -          -          -
Recall               14         14         37          -          -          -
Brambles Industrial
Services             12         10         23         (3)         -          -
Regional Businesses (21)         2          -          -          -          -
Corporate            (8)        (9)       (19)         -          -         (2)
              ------------------------------------------------------------------
Total continuing
businesses          101        161        265         (3)         -         (2)
Discontinued         31         18          8         30         13         (1)
              ------------------------------------------------------------------

                    132        179        273         27         13         (3)
              ------------------------------------------------------------------

By geographical origin
Europe               42         70         85         (3)        (3)       (19)
Americas             42         53         90         30          1          1
Australia /          39         48         82          -         15         15
New Zealand
Rest of World         9          8         16          -          -          -
              ------------------------------------------------------------------

                    132        179        273         27         13         (3)
              ------------------------------------------------------------------

                                        21

Brambles

COMBINED SEGMENTAL ANALYSIS (unaudited) continued
for the half-year ended 31 December 2003

                                                     Net assets

                                          First half   First half    Full year
                                                2004         2003         2003
                                          £ millions   £ millions   £ millions
                                          --------------------------------------
By business segment
CHEP                                           1,636        1,726        1,681
Cleanaway                                        671          663          675
Recall                                           333          311          335
Brambles Industrial Services                     232          233          241
Regional Businesses                               85          113          108
Unallocated                                      (66)         (59)         (75)
                                          --------------------------------------
Total continuing businesses                    2,891        2,987        2,965
Discontinued                                      (6)          14          (14)
                                          --------------------------------------

Total segmented net operating assets           2,885        3,001        2,951
                                          --------------------------------------

By geographical origin
Europe                                         1,590        1,606        1,576
Americas                                         974        1,105        1,076
Australia / New Zealand                          320          284          306
Rest of World                                     67           65           68
Unallocated                                      (66)         (59)         (75)
                                          --------------------------------------

Total segmented net operating assets           2,885        3,001        2,951
                                          --------------------------------------

Total segmented net operating assets           2,885        3,001        2,951
Net debt                                      (1,558)      (1,688)      (1,607)
Net tax liabilities                             (149)        (180)        (154)
                                          --------------------------------------

Net assets                                     1,178        1,133        1,190
                                          --------------------------------------

                                        22

Brambles

NOTES TO THE COMBINED FINANCIAL INFORMATION (unaudited)
for the half-year ended 31 December 2003

1       BASIS OF PREPARATION

The dual listed companies structure (DLC Structure) is essentially a contractual
arrangement between Brambles Industries Limited (BIL) and Brambles Industries
plc (BIP) under which they operate as if they are a single economic enterprise,
while retaining their separate legal identities, tax residencies and stock
exchange listings. It did not involve the acquisition of one company by the
other or any transfer of shares or other assets between BIL and BIP. This
structure unites the economic interests of the two shareholder groups. BIL and
BIP are referred to collectively throughout these financial statements as
Brambles.

Combined financial information has been presented in order to provide
shareholders with a fuller picture of the combined economic interests of
Brambles. It has been prepared under merger accounting principles, as set out in
Financial Reporting Standard 6: Acquisitions and Mergers. Under merger
accounting the results and cash flows of BIP and BIL have been combined from the
beginning of the 2002 financial year.

Consolidated financial information for BIP is presented on pages 29 to 32.

Where necessary, comparatives have been reclassified and repositioned for
consistency with the 2003 year-end disclosures.

Accounting policies
-------------------

The interim results for the half-year ended 31 December 2003 (First half 2004)
have been prepared on the basis of the accounting policies set out in the 2003
Annual Report and Accounts.

The accounting policies of BIP and BIL are the same under UK GAAP. A
reconciliation between UK GAAP and Australian GAAP (AGAAP) is presented in Note
6.

                                        23

Brambles

NOTES TO THE COMBINED FINANCIAL INFORMATION (unaudited) continued
for the half-year ended 31 December 2003

2       EARNINGS PER SHARE

Earnings per share (EPS) for the first half of 2004 is based on the earnings of
the half-year of £53 million (2003: £89 million) and calculated on the weighted
average number of 1,690.7 million shares in issue and ranking for dividend
(2003: 1,690.6 million shares). Diluted EPS, which takes into account options
over shares, is calculated on the weighted average number of 1,691.1 million
(2003: 1,690.7 million) shares.

EPS before goodwill amortisation and exceptional items, which the Directors
consider gives a useful additional indication of underlying performance, is
calculated on the earnings of the half-year adjusted as follows:

                                                         Earnings

                                                First half First half  Full year
                                                      2004       2003       2003
                                                £ millions £ millions £ millions
                                                ---------------------------------
Profit for the period                                   53         89        117
Included in operating profit:
- Goodwill amortisation                                 18         16         34
- Exceptional items                                     47          2         59
Non-operating exceptional items                        (27)       (13)         3
Tax attributable to exceptional items                    -          2        (19)
                                                ---------------------------------
Profit after tax before goodwill
amortisation and exceptional items                      91         96        194
                                                ---------------------------------

                                                            EPS

                                                First half First half  Full year
                                                      2004       2003       2003
                                                     pence      pence      pence
                                                ---------------------------------

Profit for the period                                   3.1       5.3        6.9
Included in operating
profit:
- Goodwill amortisation                                 1.1       0.9        2.0
- Exceptional items                                     2.8       0.1        3.5
Non-operating exceptional items                        (1.6)     (0.7)       0.2
Tax attributable to exceptional items                     -       0.1       (1.1)
                                                ---------------------------------
Profit after tax before goodwill
 amortisation and exceptional items                     5.4       5.7       11.5
                                                ---------------------------------

                                        24


Brambles

NOTES TO THE COMBINED FINANCIAL INFORMATION (unaudited) continued
for the half-year ended 31 December 2003

3       EXCEPTIONAL ITEMS

                                                 First half  First half  Full year
                                                       2004        2003       2003
                                                 £ millions  £ millions £ millions
                                                 ----------------------------------

Operating exceptional items:
- Reorganisation costs 1                                (28)        (2)       (59)
- Goodwill impairment 2                                 (19)         -          -
                                                 ----------------------------------
Total operating exceptional items                       (47)        (2)       (59)

Non-operating exceptional items:
- Profit on sale of discontinued operations 3            30         21         23
- Loss on sale of discontinued operations                (3)        (8)       (24)
                                                 ----------------------------------
Net (loss)/profit on sale of
discontinued operations                                  27         13         (1)
DLC costs                                                 -          -         (2)
                                                 ----------------------------------

Total non operating exceptional items                    27         13         (3)
                                                 ----------------------------------

Total exceptional items before tax                      (20)        11        (62)
                                                 ----------------------------------

Tax on exceptional items:
Operating exceptional items                              12          1         18
Non-operating exceptional items:
- Profit on sale of discontinued
operations                                              (13)        (3)        (2)
- Loss on sale of discontinued operations                 1          -          2
- DLC costs                                               -          -          1
                                                 ----------------------------------

Total tax on exceptional items                            -         (2)        19
                                                 ----------------------------------

Exceptional items after tax                             (20)         9        (43)
                                                 ----------------------------------


1 These costs principally comprise redundancy costs, pallet writedowns and other
related costs in CHEP Europe of £23 million (2003: £2 million), and other
restructuring costs (principally in Cleanaway) of £5 million (2003: nil).

2 Following detailed business reviews undertaken during the period, and in light
of its first half trading performance, an impairment charge of £19 million
(£17 million after tax) was booked against the carrying value of goodwill in
Interlake, which forms part of the Regional Businesses segment.

3 In August 2003, Brambles completed the sale of Meineke Car Care Centers, Inc
(Meineke) for net proceeds of £42 million. This resulted in a profit on sale of
£30 million (£17 million after tax).

                                        25

Brambles

NOTES TO THE COMBINED FINANCIAL INFORMATION (unaudited) continued
for the half-year ended 31 December 2003

4       EQUITY DIVIDENDS

An interim dividend of 4.155 pence per BIP share has been declared and will be
paid on 8 April 2004 to shareholders on the register at 19 March 2004.

                                                 First half First half  Full year
                                                       2004       2003       2003
                                                 £ millions £ millions £ millions
                                                 ---------------------------------
                                                  
BIP:
- Interim declared 4.155 pence per share
  (2003: 3.757 pence)                                    30         27         27
- 2003 second interim paid in the second half
  4.053 pence per share                                   -          -         29
                                                 ---------------------------------
                                                         30         27         56
BIL:
- Interim declared 10.0 cents per share (2003:           41         32         32
  10.0 cents)
- 2003 final paid in the second half 10.0 cents           -          -         39
  per share                                      ---------------------------------
                                                         41         32         71

Total                                                    71         59        127
                                                 ---------------------------------


5       CONTINGENT LIABILITIES

Brambles is in the process of agreeing completion accounts in respect of the
disposals of several businesses sold in current or prior periods. Brambles has
recognised the financial impact of the expected resolution of any outstanding
items on the basis of all information currently available. Until these matters
are agreed, a contingent liability exists for any costs ultimately borne by
Brambles in excess of the amounts provided at 31 December 2003.

Except for the above, there have been no other material changes in the
contingent liabilities of Brambles.

                                        26

Brambles

NOTES TO THE COMBINED FINANCIAL INFORMATION (unaudited) continued
for the half-year ended 31 December 2003

6       GAAP RECONCILIATION

(a)     First half 2004


                                                   GAAP adjustments in A$ millions
                                                   -------------------------------
                            First half First half     Joint                           First half
                                  2004       2004  ventures                     Total       2004
                               UK GAAP    UK GAAP       and                    adjust      AGAAP
                             £ million A$ million     assoc.  Goodwill Other  - ments A$ million
                            ---------------------------------------------------------------------
                             
TURNOVER (including share
of joint ventures and
associates)                      1,549     3,761          -          -       -        -     3,761
                            ---------------------------------------------------------------------

OPERATING PROFIT
Continuing operations before
goodwill amortisation and
exceptional items                  162       392          -          -       3        3       395
Goodwill
amortisation                       (18)      (44)         1         (9)      -       (8)      (52)
Exceptional items                  (47)     (113)         -          -       -        -      (113)
                            ----------------------------------------------------------------------
Continuing operations               97       235          1         (9)      3       (5)      230

Discontinued operations              1         2          -          -       -        -         2
                            ----------------------------------------------------------------------

GROUP OPERATING PROFIT
                                    98       237          1         (9)      3       (5)      232
Share of operating profit of
joint ventures
and associates                       7        17         (6)         -       -       (6)       11
                            ----------------------------------------------------------------------

TOTAL OPERATING
PROFIT                             105       254         (5)        (9)      3      (11)      243
                            ----------------------------------------------------------------------

EXCEPTIONAL ITEMS
Net profit on sale of
discontinued operations             27        67          -         13       -       13        80
                            ----------------------------------------------------------------------

PROFIT BEFORE INTEREST
AND TAX                            132       321         (5)         4       3        2       323
                            ----------------------------------------------------------------------

Net interest
payable                            (39)      (94)         2          -       -        2       (92)

PROFIT BEFORE
TAX                                 93       227         (3)         4       3        4       231
                            ----------------------------------------------------------------------

Tax                                (40)      (97)         3          2       -        5       (92)

PROFIT AFTER TAX                    53       130          -          6       3        9       139
                            ----------------------------------------------------------------------

Minority
interests                            -        (1)         -          -       -        -        (1)

ATTRIBUTABLE PROFIT                 53       129          -          6       3        9       138
                            ----------------------------------------------------------------------

                                        27

Brambles

NOTES TO THE COMBINED FINANCIAL INFORMATION (unaudited) continued
for the half-year ended 31 December 2003


6       GAAP RECONCILIATION continued


(b)    First half 2003


                                                   GAAP adjustments in A$ millions
                                                   -------------------------------
                           First half First half      Joint                             First half
                                 2003       2003   Ventures                      Total        2003
                              UK GAAP    UK GAAP        and                     adjust       AGAAP
                            £ million A$ million      assoc.   Goodwill  Other  -ments  A$ million
                           ------------------------------------------------------------------------
TURNOVER (including share
of joint ventures and
associates)                      1,474     4,191          -          -       -        -     4,191
                           ------------------------------------------------------------------------

OPERATING PROFIT
Continuing operations before
 goodwill amortisation and
 exceptional items                 173       492          -          -       1        1       493
Goodwill amortisation              (16)      (46)         1         (9)      -       (8)      (54)
Exceptional items                   (2)       (6)         -          -       -        -        (6)
                           ------------------------------------------------------------------------
Continuing operations              155       440          1         (9)      1       (7)      433

Discontinued operations              5        14          -          -       1        1        15
                           ------------------------------------------------------------------------

GROUP OPERATING PROFIT             160       454          1         (9)      2       (6)      448
Share of operating profit of
joint ventures and associates        6        17         (7)         -       -       (7)       10
                           ------------------------------------------------------------------------

TOTAL OPERATING PROFIT             166       471         (6)        (9)      2      (13)      458
                           ------------------------------------------------------------------------

EXCEPTIONAL ITEMS
Net profit on sale of
discontinued operations             13        35          -         (2)      -       (2)       33
                           ------------------------------------------------------------------------

PROFIT BEFORE INTEREST
AND TAX                            179       506         (6)       (11)      2      (15)      491
                           ------------------------------------------------------------------------

Net interest payable               (42)     (119)         2          -       -        2      (117)

PROFIT BEFORE TAX                  137       387         (4)       (11)      2      (13)      374
                           ------------------------------------------------------------------------

Tax                                (47)     (134)         4          -       5        9      (125)

PROFIT AFTER TAX                    90       253          -        (11)      7       (4)      249
                           ------------------------------------------------------------------------

Minority interests                  (1)       (1)         -          -       -        -        (1)

ATTRIBUTABLE PROFIT                 89       252          -        (11)      7       (4)      248
                           ------------------------------------------------------------------------

                                        28

Brambles Industries plc
Company No 4134697

CONSOLIDATED PROFIT AND LOSS ACCOUNT (unaudited)
for the half-year ended 31 December 2003


                                              First half First half  Full year
                                                    2004       2003       2003
                                              £ millions £ millions £ millions
                                              ---------------------------------
               
TURNOVER (including share of joint ventures 
and associates)
- Continuing operations                            1,083      1,055      2,072
- Discontinued operations                              2         10         67
                                              ---------------------------------

                                                   1,085      1,065      2,139

Less share of joint ventures and
associates - continuing operations                   (28)       (25)       (50)
                                              ---------------------------------

GROUP TURNOVER                                     1,057      1,040      2,089
                                              ---------------------------------

OPERATING PROFIT
Continuing operations before goodwill
amortisation and exceptional items                    91        110        213
Goodwill amortisation                                 (8)        (8)       (16)
Exceptional items                                    (47)        (3)       (57)
                                              ---------------------------------
Continuing operations                                 36         99        140
Discontinued operations                                1          3          7
                                              ---------------------------------
GROUP OPERATING PROFIT                                37        102        147

Share of operating profit of joint ventures and
associates
- continuing operations                                2          2          5
                                              ---------------------------------

TOTAL OPERATING PROFIT                                39        104        152

Exceptional items
Net profit/(loss) on sale of
discontinued operations                               30          -         (5)
DLC costs - continuing operations                      -          -         (2)
                                              ---------------------------------

PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST         69        104        145
AND TAX

Net interest payable                                 (33)       (33)       (70)
                                              ---------------------------------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAX              36         71         75

Tax on profit on ordinary activities                 (22)       (23)       (31)
                                              ---------------------------------

PROFIT ON ORDINARY ACTIVITIES AFTER TAX               14         48         44

Equity minority interest                              (1)       (21)       (16)
                                              ---------------------------------

PROFIT ATTRIBUTABLE TO SHAREHOLDERS                   13         27         28

Equity dividends paid and proposed                   (30)       (25)       (56)
                                              ---------------------------------

RETAINED (LOSS)/PROFIT FOR THE PERIOD
TRANSFERRED
(FROM)/TO RESERVES                                   (17)         2        (28)
                                              ---------------------------------

Basic earnings per share (pence)                     1.8        3.7        3.9
Diluted earnings per share (pence)                   1.8        3.7        3.9
                                              ---------------------------------

                                        29

Brambles Industries plc
Company No 4134697

CONSOLIDATED BALANCE SHEET (unaudited)
for the half-year ended 31 December 2003

                                           December     December         June
                                               2003         2002         2003
                                         £ millions   £ millions   £ millions
                                         --------------------------------------
FIXED ASSETS
Intangible assets                               225          239          247
Tangible fixed assets and investments         1,874        1,888        1,927
                                         --------------------------------------

                                              2,099        2,127        2,174
                                         --------------------------------------
CURRENT ASSETS
Stocks                                           19           28           20
Debtors                                         440          634          471
Cash at bank and in hand                         52           31           40
                                         --------------------------------------

                                                511          693          531
                                         --------------------------------------

CREDITORS: amounts falling due within
one year                                       (903)      (1,735)        (997)
                                         --------------------------------------

NET CURRENT LIABILITIES                        (392)      (1,042)        (466)
                                         --------------------------------------

TOTAL ASSETS LESS CURRENT LIABILITIES         1,707        1,085        1,708

CREDITORS: amounts falling due after
more than one year                             (904)        (179)        (864)
Provisions for liabilities and charges         (184)        (233)        (196)
                                         --------------------------------------

NET ASSETS                                      619          673          648
                                         --------------------------------------

CAPITAL AND RESERVES
Share capital                                    36           36           36
Share premium account                            50           50           50
Other reserves                                   83           82           83
Profit and loss account                         168          205          187
                                         --------------------------------------
Equity shareholders' funds                      337          373          356
Equity minority interests                       282          300          292
                                         --------------------------------------

                                                619          673          648
                                         --------------------------------------



CONSOLIDATED STATEMENT OF TOTAL
RECOGNISED GAINS AND LOSSES (unaudited)
for the half-year ended 31 December 2003

                                              First half First half  Full year
                                                    2004       2003       2003
                                              £ millions £ millions £ millions
                                              ---------------------------------
                                              
Profit attributable to parent companies'              13         27         28
shareholders
Exchange translation differences                      (7)        (8)         5
                                              ---------------------------------
Total recognised gains and losses for the              6         19         33
period                                        ---------------------------------

                                        30

Brambles Industries plc
Company No 4134697

CONSOLIDATED CASH FLOW STATEMENT (unaudited)
for the half-year ended 31 December 2003

                                              First half First half  Full year
                                                    2004       2003       2003
                                              £ millions £ millions £ millions
                                              ----------------------------------
                                              
Net cash inflow from operating activities            241        179        492
                                              ----------------------------------

Dividends received from associates                     1          -          2
                                              ----------------------------------

Interest received                                      1          6         20
Interest paid                                        (31)       (37)       (91)
Interest element of finance lease
rentals                                                -          -         (1)
Dividends paid to minority shareholders in
subsidiary Undertakings                                -        (26)       (36)
                                              ----------------------------------

Returns on investments and servicing of
finance                                              (30)       (57)      (108)
                                              ----------------------------------

UK corporation tax paid                               (9)       (16)       (27)
Overseas corporate tax paid                           (7)        (8)       (33)
                                              ----------------------------------

Taxation paid                                        (16)       (24)       (60)
                                              ----------------------------------

Purchase of tangible fixed assets                   (179)      (201)      (368)
Proceeds from sale of tangible fixed assets            9          7         24
Investment loans and other financial                   3          -          -
investments                                   ----------------------------------

Capital expenditure and financial
investment                                          (167)      (194)      (344)
                                              ----------------------------------

Purchase of subsidiary undertakings and
associates                                            (1)        (2)       (24)
Net cash acquired with subsidiary                      -          -          4
undertakings
Sale of businesses                                    42          -          2
                                              ----------------------------------

Acquisitions and disposals                            41         (2)       (18)
                                              ----------------------------------

Equity dividends paid to shareholders                (29)       (26)       (53)
                                              ----------------------------------

Net cash inflow/(outflow) before management
of liquid resources and financing                     41       (124)       (89)
                                              ----------------------------------

Management of liquid resources                         -          -          -
                                              ----------------------------------

(Decrease)/increase in borrowings                    (17)       125        101
                                              ----------------------------------

Financing                                            (17)       125        101
                                              ----------------------------------

Increase in cash                                      24          1         12
                                              ----------------------------------

                                        31

Brambles Industries plc
Company No 4134697


NOTES TO THE BIP FINANCIAL INFORMATION (unaudited)
for the half-year ended 31 December 2003


1       Basis of preparation

BIP was incorporated on 3 January 2001. On 7 August 2001, the support services
activities of GKN plc were transferred to BIP by way of a court approved
reduction of capital of GKN plc and the issue of ordinary shares in BIP to the
shareholders of GKN plc as part of the combination transaction.

The above transaction was accounted for as a group reconstruction under merger
accounting principles. The results and cash flows of the relevant entities were
combined from the beginning of the 2002 financial year and their assets and
liabilities combined at the amounts at which they were previously recorded.

In preparing the financial information, the results, and assets and liabilities
of the 50 per cent joint ventures (Joint Ventures) with BIL have been included
as subsidiary undertakings. As a result of the DLC arrangements, the Joint
Ventures are managed on a unified basis and are therefore deemed to be
subsidiary undertakings of BIP. The interests of BIL in the Joint Ventures have
been recognised as minority interests.


2       Accounting policies

The interim financial information for the half-year ended 31 December 2003 has
been prepared on the basis of the accounting policies set out in the 2003 Annual
Report and Accounts.


3       Combined financial information

The combined financial information presented on pages 15 to 28 forms part of the
notes to the financial information for BIP. The DLC structure unites the
economic interests of BIP and BIL shareholder groups. The Directors consider
that to provide a true and fair view of the impact of the DLC arrangements on
BIP it is necessary to provide combined financial information of the combined
businesses of BIP and BIL under merger accounting principles.



4       Status of financial information


The figures included within the financial information for the year ended 30 June
2003 (which do not constitute statutory accounts within the meaning of Section
240 of the Companies Act 1985) have been extracted from the Annual Report and
Accounts, which have been filed with the Registrar of Companies. The auditors'
opinion on those accounts was unqualified and did not contain a statement under
Section 237 of the Companies Act 1985. The interim financial information was
approved by the Board of Directors on 25 February 2004. It is unaudited but has
been reviewed by the auditors.

                                        32

Independent review report to Brambles Industries plc
====================================================

Introduction
------------

We have been instructed by the company to review the financial information which
comprises the consolidated profit and loss account, the consolidated balance
sheet, the consolidated statement of total recognised gains and losses, the
consolidated cash flow statement and the related notes, including the combined
financial information. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors' responsibilities
---------------------------

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed
---------------------

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
the Listing Rules of the Financial Services Authority and for no other purpose.
We do not, in producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent in writing.

Review conclusion
-----------------

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2003.




PricewaterhouseCoopers LLP
Chartered Accountants
London
25 February 2004

                                        33






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