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Brambles Industries (BI.)

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Wednesday 23 August, 2006

Brambles Industries

Final Results

Brambles Industries PLC
23 August 2006

Brambles Industries plc

Company Number: 4134697
23 August 2006

      Brambles reports very strong results for the year ended 30 June 2006


Brambles today reported a 29% increase in comparable operating profit before
special items for its continuing operations of CHEP and Recall to US$771.3
million.  As a result of lower average debt levels, profit before tax and
special items for continuing operations showed an even greater improvement, 40%
(41% higher in constant currency) above 2005.



Including discontinued operations, profit after tax before special items was up
42% (44% in constant currency) to US$647.1 million.  In 2006, special items
after tax totalled US$817.3 million.  Profit after tax and special items was
US$1,464.4 million compared with US$448.8 million in 2005.



In November 2005, Brambles announced that it would focus on its premium growth
businesses of CHEP and Recall and divest its other businesses.  The divestment
programme has been largely completed with gross divestment proceeds totalling
US$3.6 billion.  A profit on sale of US$1,071.6 million has been recognised in
the 2006 results, excluding the impact of Cleanaway UK which is expected to be
completed within the next two months.



Dividends totalling 48.0 Australian cents (19.364 pence) have been declared
including a special dividend of 34.5 Australian cents (13.918 pence).  The
special dividend comprises 21.0 Australian cents (8.472 pence) in recognition of
the success of the divestment programme, and 13.5 Australian cents (5.446 pence)
in lieu of the 2007 interim dividend.



Highlights of the key financial results for the year include:
Year ended 30 June                                              2006     2005      %chg.             %chg.
                                                                                              (Constant Currency)
(IFRS US$ millions)
Continuing operations
Sales revenue                                                3,522.1  3,274.8          8                              8
Comparable operating profit (before special items)             771.3    599.8         29                             29
Profit before tax (before special items)                       659.5    469.7         40                             41
Profit after tax (before special items)                        430.1    309.3         39                             40
Profit after tax and special items                             362.6    313.1         16
Group
Sales revenue                                                5,915.7  5,963.8        (1)                              1
Profit after tax (before special items)                        647.1    454.5         42                             44
Special items                                                  817.3    (5.7)
Profit after tax and special items                           1,464.4    448.8        226
Earnings per share (before special items) (US cents)            38.3     26.8         43                             45
Earnings per share (US cents)                                   86.7     26.4        228
Free cash flow                                                 559.7    622.2
Net debt                                                     1,690.1  2,208.3
Dividends - Declared* (pence)
2006 Second Interim Dividend                                   5.446    4.815         13
Special Dividend#                                             13.918        -
Total                                                         19.634    4.815

Interim Dividend - Paid                                        4.887    4.156         18

2006 Total Dividends                                          24.251    8.971

* Total dividend declared for Brambles Industries Limited shareholders is 48.0
Australian cents and is detailed on page 3
# Special Dividend includes an amount in lieu of the 2007 Interim Dividend that
would normally be paid in April 2007

The Chief Executive Officer of Brambles, David Turner, said: 'We have had a very
good year.  We have delivered a strong improvement in profit, an excellent
outcome from our divestment programme and increased dividends.

'We embarked upon a major restructuring of the company while at the same time
achieving excellent trading results.  The US$3.6 billion from the asset sales
significantly exceeded our expectations.

'Operationally, CHEP had another very strong performance with profits up by 32%
while Recall showed significant improvement in the second half.  In our
continuing operations, we have again increased sales and profits and delivered
another year of strong cash flow.

'The final dividend has been increased to 13.5 Australian cents and we have
declared a special dividend of 34.5 Australian cents, which includes 13.5
Australian cents in lieu of the 2007 interim dividend and 21.0 Australian cents
in recognition of the success of the divestment programme.

'We have an entrenched value-based management philosophy in Brambles which is
driving continuous improvement through all aspects of our business.

'With the decision to focus our efforts on our premium growth businesses of CHEP
and Recall, we are entering into an exciting period of sustainable growth.  We
will find greater opportunities to expand within existing geographies and also
into new markets.

'Despite higher oil prices and some uncertainty around the world, our businesses
are performing very well and we expect to have another good year in 2007,' 
Mr Turner said.

Outlook

A priority over the next several months is to complete the Unification of the
dual listed companies structure (DLC) and list the new company, Brambles
Limited, on the Australian Stock Exchange with a secondary listing on the London
Stock Exchange.  Subject to shareholder and court approval, Brambles remains on
track to complete this process by early December.

Overall, CHEP is expected to deliver another year of good performance in 2007.

CHEP Americas is expected to show robust growth in sales with ongoing
operational improvements.

CHEP Europe is expected to deliver another strong performance with continued
margin expansion and steady sales growth.

CHEP Rest of World continues to trade well.

Recall is expected to build on improvements seen in the second half of 2006.
Recall North America should benefit from new customer contracts.  Recall Europe
is expected to perform well.  In Asia-Pacific, the integration of AUSDOC
continues as planned.

'The outlook for Brambles remains positive. We expect to build on the momentum
of recent years and in the early part of the current financial year Brambles is
performing well.  In 2007, we expect further good progress in both CHEP and
Recall as well as solid cash generation,' Mr Turner said.

                                       2


                                   Highlights

Group

•         The Unification of the DLC structure is expected to be completed in
early December, subject to shareholder and court approval.

•         The divestment programme has raised US$3.6 billion, of which US$1.2
billion had been received by 30 June 2006. These proceeds have been applied to
the acquisition of AUSDOC (US$191 million), share buy-backs (US$645 million),
and the balance used to reduce debt.  A further US$1.3 billion from the sale of
Cleanaway Australia and New Zealand and Industrial Services Australia was
received on 5 July 2006.

•         Following the divestment programme, the Cash Alternative to be offered
to shareholders if Unification is approved, has been set at a maximum of US$2.2
billion.

•         Brambles has declared dividends totalling 48.0 Australian cents
(19.364 pence) per share payable on 12 October 2006 and consisting of:

-           a 2006 Final Dividend of 13.5 Australian cents, fully franked for
Brambles Industries Limited (BIL) shareholders and an equivalent second interim
dividend of 5.446 pence for Brambles Industries plc (BIP) shareholders; and

-           a Special Dividend of 34.5 Australian cents (13.918 pence), payable
to both BIL and BIP shareholders (fully franked for BIL shareholders) consisting
of:

•               13.5 Australian cents (5.446 pence) in lieu of the 2007
Interim Dividend that would normally be paid in April 2007; and

•               21.0 Australian cents (8.472 pence) in recognition of the
success of the divestment programme.

Continuing operations

•         CHEP sales were 7% higher at US$3 billion (8% in constant currency)
and comparable operating profit improved by 32% to US$703.8 million.  Capital
expenditure increased by US$55.7 million to US$549.0 million and included an
initial spend of US$15 million on improving the efficiency of the inspection and
repair process by the installation of 11 Perfect Plants.  Return on capital
invested rose to 25% while cash flow from operations (after net capital
expenditure) was US$67.1 million higher at US$672.2 million;

•         CHEP Americas' comparable operating profit increased by 59% (56% in
constant currency) to US$324.9 million on the back of solid sales growth of 12%
(10% in constant currency).  The US business continued to benefit from strong
asset control and improved operational efficiencies;

•         CHEP Europe grew comparable operating profit by 17% (20% in constant
currency) to US$263.6 million.  Sales grew by 2% (6% in constant currency).
Europe benefited from restructuring and pricing initiatives aimed at aligning
the customer use of pallets and the cost to serve.  Recently introduced
activity-based pricing is resulting in fewer pallets being sent to smaller
distributors and contributing to improved asset control and cost recovery;

                                       3

•         CHEP Rest of World sales were 8% higher (9% in constant currency) and
comparable operating profit 11% higher (12% in constant currency) to US$115.3
million;

•         Recall sales were 10% higher at US$565.7 million and comparable
operating profit improved by 16% to US$97.5 million (15% higher in constant
currency).  Excluding the impact of the AUSDOC acquisition, sales were 4%
higher.  Operating profits even excluding AUSDOC showed a significant
improvement in the second half as compared to the first half.

Discontinued operations

•         The performance of the divested businesses is shown under discontinued
operations;

•         Under International Financial Reporting Standards (IFRS),
depreciation, amortisation and the recognition of the share of profits of joint
ventures and associates cease once an asset is reclassified as being held for
sale.  The impact of this accounting requirement resulted in comparable
operating profit for discontinued operations receiving a net benefit of US$92.7
million in the year ended 30 June 2006. In addition, comparisons to the previous
year are not meaningful due to a number of these businesses being sold part way
through the year;

•         Sales for discontinued operations were US$2.4 billion with comparable
operating profit of US$310.5 million;

•         During the year, the divestments of Cleanaway Germany, Brambles
Industrial Services Northern Hemisphere, the remaining Regional Businesses and
Recall Italy were completed, generating gross proceeds (before tax, costs and
fees) of US$1.2 billion and profit on sale of US$214.5 million before tax.

•         The divestment of Cleanaway Australia and Industrial Services
Australia for US$1.3 billion was announced on 19 June 2006 and completed on 5
July 2006 and the profit on sale of US$857.1 million before tax has been
recognised in these results; and

•         The divestment of Cleanaway UK for US$1.1 billion was announced on 30
June 2006 and is subject to approval from the relevant competition authority. A
decision is expected in the next two months.  The profit on sale will not be
recognised until this condition precedent has been met.  Until the completion
date, the operating profits of Cleanaway UK will continue to be reported in
Brambles' results and be shown under discontinued operations.

Notes:

Continuing operations refers to CHEP, Recall and Corporate.

All US$ figures are presented in IFRS and quoted at actual exchange rates.

Constant currency relative performance is calculated by translating both current
period and comparable period results into US$ at the actual monthly exchange
rates applicable for the comparable period.  Its purpose is to show relative
performance between periods before the translation impact of currency
fluctuations.

Where only one percentage comparison appears, the actual and constant exchange
rate calculations give the same rounded result.

Comparable operating profit is profit before finance costs, tax and special
items.

Special items comprise impairments, exceptional items, fair value adjustments
and amortisation of acquired non-goodwill intangible assets (other than
software).  Exceptional items are items of income or expense which are
considered to be outside the ordinary course of business and are, either
individually or in aggregate, material to Brambles or to the relevant business
segment.

Free cash flow is cash flow generated by the business after net capital
expenditure, finance costs and tax but excluding the net cost of acquisitions
and proceeds from business disposals.

Return on capital invested is defined as comparable operating profit divided by
average capital invested. Average capital invested is calculated as a 12 month
average of net assets before tax balances,  cash and borrowings but after adding
back accumulated pre-tax special items.

Unification refers to the process by which it is proposed that Brambles Limited
or a wholly owned subsidiary of Brambles Limited will acquire all Brambles
Industries Limited and Brambles Industries plc shares under a scheme of
arrangement.





                                       4



For further information, contact:
Australia
Investors   John Hobson, Head of Investor Relations                             +61 (0)2 9256 5216
                                                                                +61 (0)414 239 188 (mobile)
Media       Michael Sharp, Vice President Corporate Affairs                     +61 (0)2 9256 5255
                                                                                +61 (0)439 470 145 (mobile)
UK
Investors   Sue Scholes, Head of Investor Relations                             +44 (0)20 7659 6012
Media       Richard Mountain, Financial Dynamics                                +44 (0)20 7269 7291



                Brambles is globally headquartered in Australia





An analysts' briefing will be held in Sydney at 10.00am on 23 August 2006.  This
will be webcast and available with supporting slides on www.brambles.com.



                                       5




Brambles


PRELIMINARY FINAL REPORT
for the year ended 30 June 2006


Index                                                                                                              Page


Summary of consolidated results

Results for announcement to the market                                                                                1
Trading performance                                                                                                   4
Operational review                                                                                                    5
Outlook                                                                                                              15

Consolidated financial information

Consolidated income statement                                                                                        16
Consolidated balance sheet                                                                                           17
Consolidated statement of recognised income and expense                                                              18
Consolidated cash flow statement                                                                                     19
Notes to the consolidated financial information
     1  Basis of preparation                                                                                         20
     2  Business segment analysis                                                                                    22
     3  Profit from ordinary activities - continuing operations                                                      24
     4  Special items - continuing operations                                                                        25
     5  Discontinued operations                                                                                      26
     6  Business combination                                                                                         30
     7  Income tax                                                                                                   32
     8  Earnings per share                                                                                           33
     9  Dividends                                                                                                    34
    10  Issued and quoted securities                                                                                 35
    11  Changes in equity                                                                                            35
    12  Cash flow statement - additional information                                                                 36
    13  Equity-accounted investments                                                                                 38
    14  Net tangible assets backing                                                                                  38
    15  Contingent liabilities                                                                                       39
    16  Events after balance sheet date                                                                              39

Statement of compliance                                                                                              40








Brambles
SUMMARY OF CONSOLIDATED RESULTS

for the year ended 30 June 2006

Results for announcement to the market

                                                                                                              % change
At actual exchange rates                                                2006                 2005            at actual
                                                                        US$m                 US$m             fx rates

RESULTS BEFORE SPECIAL ITEMS 1

Continuing operations
Sales revenue                                                         3,522.1              3,274.8                 8%
Operating profit                                                        771.3                599.8                29%
Profit before tax                                                       659.5                469.7                40%
Profit after tax                                                        430.1                309.3                39%

Profit from discontinued operations                                     217.0                145.2                49%

Profit for the year                                                     647.1                454.5                42%

Profit attributable to members of the parent entities                   646.1                452.7                43%

Basic earnings per share (cents)                                         38.3                 26.8                43%



STATUTORY RESULTS

Continuing operations
Sales revenue                                                         3,522.1              3,274.8                 8%
Operating profit                                                        701.1                606.0                16%
Profit before tax                                                       589.3                475.9                24%
Profit after tax                                                        362.6                313.1                16%

Profit from discontinued operations                                   1,101.8                135.7               712%

Profit for the year                                                   1,464.4                448.8               226%

Profit attributable to members of the parent entities                 1,463.4                447.0               227%

Basic earnings per share (cents)                                         86.7                 26.4               228%



Net capital expenditure on property, plant
and equipment                                                           608.3                665.7

Free cash flow 2                                                        559.7                622.2

Free cash flow after dividends                                          263.0                365.7

Net debt                                                              1,690.1              2,208.3



Dividend                                                                                       BIL                  BIP

Interim dividend paid 13 April 2006 (per share)                                       11.5 A cents          4.887 pence

Dividends payable 12 October 2006:
 - Amount declared (per share)                                                        48.0 A cents         19.364 pence
 - Franked amount (per share)                                                         48.0 A cents                    -
 - Record date                                                                            22/09/06             22/09/06



1  Special items comprise impairments, exceptional items, fair value adjustments and amortisation of acquired
   non-goodwill intangible assets (other than software).
2  Free cash flow is cash flow generated after net capital expenditure, excluding the net cost of acquisitions and
   proceeds from business disposals.



                                    1 of 40



Brambles



RESULTS BY BUSINESS SEGMENT

AT ACTUAL AND CONSTANT CURRENCY EXCHANGE RATES

                                                        2006        at prior year           2005             % change
                                                      actual             fx rates         actual          at constant
Sales                                                   US$m                 US$m           US$m             currency

CHEP                                                 2,956.4              2,985.6        2,762.6                  8%
Recall                                                 565.7                565.0          512.2                 10%
Continuing operations                                3,522.1              3,550.6        3,274.8                  8%

Cleanaway                                            1,771.9              1,834.8        1,895.3                 (3%)
Brambles Industrial Services                           441.5                451.0          559.2                (19%)
Regional Businesses                                    160.8                160.6          216.1                (26%)
Other                                                   19.4                 20.1           18.4                  9%
Discontinued operations                              2,393.6              2,466.5        2,689.0                 (8%)

Total                                                5,915.7              6,017.1        5,963.8                  1%

Comparable operating profit 1

CHEP                                                   703.8                706.6          534.3                 32%
Recall                                                  97.5                 96.9           84.4                 15%
Corporate                                              (30.0)               (27.3)         (18.9)               (44%)
Continuing operations                                  771.3                776.2          599.8                 29%

Cleanaway                                              241.5                249.6          135.2                 85%
Brambles Industrial Services                            62.8                 64.0           68.0                 (6%)
Regional Businesses                                      5.2                  5.1           14.2                (64%)
Other                                                    1.0                  1.1           (1.4)
Discontinued operations                                310.5                319.8          216.0                 48%

Total                                                1,081.8              1,096.0          815.8                 34%

Reconciliation to statutory
profit after tax

Comparable operating profit
from continuing operations                             771.3                776.2          599.8                 29%

Net finance costs                                     (111.8)              (112.9)        (130.1)                13%

Profit before tax and special items from
continuing operations (PBTA)                           659.5                663.3          469.7                 41%

Tax expense on PBTA                                   (229.4)              (230.7)        (160.4)               (44%)

Profit after tax, before special items (PATA),
from continuing operations                             430.1                432.6          309.3                 40%

Special items from continuing
operations, after tax                                  (67.5)                                3.8

Profit from continuing operations, after tax           362.6                               313.1

Profit from discontinued operations, after tax       1,101.8                               135.7

Profit for the period                                1,464.4                               448.8

Basic earnings per share (US cents)                     86.7                                26.4
Earnings per share on PATA (US cents)                   38.3                                26.8

BVA (Brambles Value Added) 1
from continuing operations                                                    347            179
1 Refer to notes on page 3



                                    2 of 40




Brambles


RESULTS BY BUSINESS SEGMENT
AT ACTUAL AND CONSTANT CURRENCY EXCHANGE RATES - continued

                                                    2006                      2005                            % change
                                                  actual                    actual                           at actual
Operating profit 1                                  US$m                      US$m                            currency

CHEP                                               703.8                     534.3                                32%
Recall                                              72.8                      90.6                               (20%)
Corporate                                          (75.5)                    (18.9)
Continuing operations                              701.1                     606.0                                16%

Cleanaway                                        1,235.9                     135.2                               814%
Brambles Industrial Services                        51.0                      68.0                               (25%)
Regional Businesses                                 66.2                      14.2                               366%
Other                                              (25.5)                     (1.4)
Discontinued operations                          1,327.6                     216.0                               515%

Total                                            2,028.7                     822.0                               147%

1  Operating profit is on a statutory basis and includes special items. Operating profit on a constant currency basis
   is not presented. There were significant profits on business divestments reported in 2006 and translation of such
   profits at the exchange rates applicable in the comparable period would be misleading.


Special items
Special items comprise impairments, exceptional items, fair value adjustments and amortisation of acquired non-goodwill
intangible assets (other than software). Exceptional items are items of income or expense which are considered to be
outside the ordinary course of business and are, either individually or in aggregate, material to Brambles or to the
relevant business segment.

Comparable operating profit
All references to comparable operating profit are to profit before special items, finance costs and tax, which the
Directors consider to be a useful measure of underlying business performance.

Constant currency translation of foreign currency results
In the commentary, comparative trading measures have been presented in constant currency, by translating both current
and comparable period results into US dollars at the actual monthly exchange rates applicable for the comparable period
so as to show relative performance between the periods before the translation impact of currency fluctuations. In the
statutory financial statements, foreign currency results have been translated at the applicable actual monthly exchange
rates ruling in each period.

Free cash flow
Free cash flow is cash flow generated after net capital expenditure but excluding the net cost of acquisitions and
proceeds from business disposals.


Free cash flow reconciles to statutory cash flow as follows:                                  2006                 2005
                                                                                              US$m                 US$m

Net cash inflow from operating activities                                                 1,189.1              1,291.2
Net cash inflow/(used) in investing activities                                              255.1               (707.3)
Net cash (used)/inflow from acquisitions and disposals                                     (884.5)                38.3
Free cash flow                                                                              559.7                622.2



Brambles Value Added (BVA)



Brambles Value Added (BVA) represents the value generated by a business over and
above the cost of the capital it uses to generate that value. BVA is denominated
in US dollars using Brambles' IFRS results. It is calculated as comparable
operating profit (COP) less (average capital invested (ACI), at fixed June 2005
exchange rates, multiplied by Brambles' weighted average pre-tax cost of capital
(WACC)).



BVA = COP - (ACI x WACC).



                                    3 of 40




TRADING PERFORMANCE - CONTINUING OPERATIONS



Sales revenue for continuing operations was US$3.5 billion, an increase of 8% in
both actual and constant currency.  Sales growth continued in both CHEP (up 7%)
and Recall (up 10%) which in constant currency terms were 8% and 10% higher
respectively.



Comparable operating profit for continuing operations was US$771.3 million
compared with US$599.8 million in the previous year, an increase of 29% in both
actual and constant currency.



Profit before tax and special items for continuing operations was US$659.5
million compared with US$469.7 million in the previous year, an increase of 40%
(41% in constant currency).



CHEP again performed strongly with sales and profit growth in all regions.
Comparable operating profit was US$703.8 million, an increase of 32% in both
actual and constant currency.



CHEP Americas maintained its strong sales growth with an increase of 12% (10% in
constant currency) while comparable operating profit was US$324.9 million, an
increase of 59% (56% in constant currency).  A combination of volume growth,
operational efficiencies and lower irrecoverable pooling equipment provisioning
contributed to the excellent results.



CHEP Europe's sales grew by 2% (6% in constant currency).  Volumes for the year
remained flat as the implementation of activity-based pricing was completed.
Comparable operating profit increased 17% to US$263.6 million (20% in constant
currency) as the impact of pricing and cost improvements were partly offset by
higher irrecoverable pooling equipment provisioning.



CHEP Rest of World continued to deliver solid sales growth with an increase of
8% (9% in constant currency).  Comparable operating profit increased by 11% to
US$115.3 million (12% in constant currency).



Recall's performance improved significantly in the second half of 2006 compared
with both the first half and also the previous year.  Comparable operating
profit for the year was 16% higher (15% in constant currency) at US$97.5
million.  The improvement in the second half included the benefit of the AUSDOC
acquisition for a full six months and Recall Europe showing further gains.
Lower recycled paper prices adversely impacted sales and profitability in North
America.



Brambles Value Added (BVA) increased sharply by US$168 million to US$347
million, as a result of improved profitability and continued tight capital
management.  This is the third successive year of significant BVA growth.



TRADING PERFORMANCE - DISCONTINUED OPERATIONS



On 29 November 2005 Brambles announced that it would focus on the premium growth
businesses of CHEP and Recall.  As a consequence, in this set of results,
Cleanaway, Brambles Industrial Services, Regional Businesses and Recall Italy
are all shown as discontinued operations.  These businesses have been
progressively divested during 2006, and because of the timing of these sales,
the 2006 results for discontinued operations are not directly comparable with
the previous year.



Under International Financial Reporting Standards (IFRS), depreciation,
amortisation and the recognition of the share of profits of joint ventures and
associates cease once an asset is reclassified as being held for sale.  The
impact of this accounting requirement resulted in the comparable operating
profit of discontinued operations receiving a net benefit of US$92.7 million in
the year ended 30 June 2006.  Excluding this net benefit from the 2006 reported
results for discontinued operations may provide a more meaningful comparison
with the previous year.  In this commentary, the use of the term 'underlying'
refers to profits excluding this net benefit.



Sales of the discontinued operations were US$2.4 billion.



The reported comparable operating profit was US$310.5 million compared with
US$216.0 million in the previous year due to a strong improvement in
profitability of both Cleanaway UK and Australia.  The underlying profit
improvement in Cleanaway UK was US$40.7 million (104% in constant currency) and
for Cleanaway Rest of World, which includes Australia, was US$6.5 million (20%
in constant currency).



                                    4 of 40



TRADING PERFORMANCE - GROUP



Profit after tax before special items at US$647.1 million was 42% higher (44% in
constant currency) than the previous year.



Profit after tax before minorities was US$1,464.4 million and included special
items of US$817.3 million.



Earnings per share before special items increased by 43% (45% in constant
currency) to 38.3 US cents.



Free cash flow was US$559.7 million and again exceeded dividends paid during the
year, which increased to US$296.7 million.  Free cash flow generation in 2006
was again strong, albeit lower than in 2005 by US$62.5 million, reflecting
restructuring costs incurred and the divestment of discontinued operations.



OPERATIONAL REVIEW



Throughout the following sections of text, all amounts quoted are at actual
exchange rates and relative performance is calculated in constant currency.
References to 2007, 2006 and 2005 are to the financial years ending 30 June
2007, 30 June 2006 and 30 June 2005 respectively.  The underlying constant
currency performance is shown in the table on page 2 and a definition of
constant currency is shown on page 3.



                                    5 of 40



Continuing operations



CHEP


                                                                                   % change
                                       2006              2005                              constant
                                       US$m              US$m                   actual     currency
Sales revenue                       2,956.4           2,762.6                        7            8
Comparable operating profit 1         703.8             534.3                       32           32
Profit Margin (%)                        24                19
Cash flow from operations (after
net capital expenditure)              672.2             605.1



1 A definition of comparable operating profit and a reconciliation to statutory
operating profit of US$703.8 million (2005: US$534.3 million) are shown on page
3.



CHEP continued to deliver good progress in sales (US$2,956.4 million, up 8%)
with growth in all regions.  Comparable operating profit grew to US$703.8
million (up 32%) with ongoing cost initiatives continuing to be a significant
factor behind the excellent profitability improvement.  Cash flow from
operations increased to US$672.2 million despite an increase in pallet purchases
to support growth.



The continued tight asset management, improved asset productivity, cost
improvement and service quality resulted in BVA for CHEP increasing by US$173
million to US$356 million.



The CHEP 'Perfect Plant' initiative is aimed at sharing best practice across
CHEP's entire service centre network and should deliver annualised cost savings
of approximately US$100 million within the next three to five years. During the
year, eleven Perfect Plant facilities began operating and five more commenced
operations in the first two months of the current financial year.  These
facilities are now performing as expected.  While the focus will remain on the
largest facilities, it is anticipated that operational enhancements will be
implemented at the majority of facilities currently operated.



CHEP has recently established a small presence in the People's Republic of China
(PRC).  A number of CHEP's customers in other regions have operations in the PRC
and the supply chain in this market is rapidly evolving.  The capital
requirements to support this expansion within the next few years are expected to
be modest.  In the long term, this represents an exciting opportunity for CHEP
as the supply chain becomes more sophisticated and continues its strong rate of
growth.



CHEP AMERICAS


                                                                                   % change
                                             2006                 2005                   constant
                                             US$m                 US$m         actual    currency
Sales revenue                             1,326.2               1,188.2            12          10
Comparable operating profit                 324.9                 204.7            59          56
Profit Margin (%)                              24                    17
Cash flow from operations (after
net capital expenditure)                    296.9                 234.2



Sales in the Americas were US$1,326.2 million, an increase of 10%.  CHEP sold
its Reusable Plastic Container (RPC) assets in the USA during the year as it was
felt unlikely that satisfactory returns could be generated in this market.
Adjusted for the sale of these assets, the underlying sales growth was 11%.
Comparable operating profit grew strongly and was 56% higher at US$324.9
million.  Higher volumes, operational efficiencies, improved asset productivity
and lower irrecoverable pooling equipment provisioning contributed to the profit
performance for the year.  In Latin America, both sales and comparable operating
profit grew in excess of 30% with all four markets growing strongly.



Operating cash flow after net capital expenditure was US$296.9 million, an
increase of US$62.7 million compared with the previous year.  Capital
expenditure increased by US$66.5 million to US$304.3 million in support of
continued strong volume growth, and the initial investment in several Perfect
Plants.



Volume growth continued to be the main driver of sales as CHEP continued to
improve its penetration in all markets.  In 2006, CHEP USA doubled the number of
new customers signed to 360 compared with the previous year.



                                    6 of 40



The value of CHEP's service offering to customers improved as lumber prices rose
in North America, adversely impacting the cost of the alternative white wood
pallet. CHEP's growth rate of new customers is expected to remain strong.



There were further operational improvements in asset control, greater asset
responsibility by distributors and a reduction in losses identified at pallet
audits resulting in a lower level of irrecoverable pooling equipment provision
expense in CHEP USA.  The control ratio for 2006 stood at 98.4% compared with
97.3% for the previous year.  Continuous improvements in asset management have
resulted in a reduced cycle time for pallets through the supply chain and over
the past two years in the USA, the asset turn has increased by about 10%.



Transportation efficiencies in CHEP Americas improved with a further US$10
million reduction due to the planning process and inventory positioning.  The
expansion of Total Pallet Management (TPM) contracts minimises the return of
undamaged pallets back to the CHEP Service Centre, allowing delivery directly
from a distributor to a CHEP customer. Higher oil prices have had only a modest
impact on CHEP USA as fuel surcharges enable higher fuel costs to be passed
through to customers.



Increased volume was the main driver of higher Service Centre costs..  Damage
and conditioning ratios (i.e. the percentage of pallets returned to CHEP
requiring repair) in CHEP USA reduced in the second half compared with the
higher levels seen in the six months to December 2005.



CHEP EUROPE


                                                                                                % change
                                                      2006                       2005                    constant
                                                      US$m                       US$m         actual     currency
Sales revenue                                      1,252.7                    1,225.0              2            6
Comparable operating profit                          263.6                      225.5             17           20
Profit Margin (%)                                       21                         18
Cash flow from operations (after
net capital expenditure)                             282.9                      273.7



Sales in CHEP Europe were US$1,252.7 million, 6% higher than the previous year
with revenue growth in pallets, RPCs and automotive crates.  Pallet volumes
remained flat with the growth in sales reflecting activity-based pricing which
has been progressively introduced across Europe.



Comparable operating profit of US$263.6 million was 20% higher than the previous
year. The opening of eight Perfect Plants across Europe (in UK, Belgium, France
and Spain) contributed to lower service centre costs, down by US$9 million.



Overheads increased slightly to support asset productivity initiatives which
have resulted in a further improvement in the control ratio to 95.2% from 94.4%
last year.  However, the irrecoverable pooling equipment provision expense was
higher reflecting the outcomes of audits during the year.



Continuing benefits from the introduction of Manugistics facilitated transport
cost savings of $3 million notwithstanding higher oil prices.



Following the successful completion of activity-based pricing, CHEP Europe is
now well positioned to focus on increasing volumes and profitable growth.
Recent customer satisfaction surveys have shown a strong improvement in two key
markets (United Kingdom and France).  There is still more to do on customer
satisfaction but these early indications are encouraging and further progress is
expected over the next two years.  The combination of Perfect Plants and
Six-Sigma process improvement techniques should contribute to further
improvements in profits and hence BVA.



                                    7 of 40

CHEP - Rest of World


                                                                                                    % change
                                                           2006                     2005                   constant
                                                           US$m                     US$m          actual   currency
Sales revenue                                             377.5                    349.4               8          9
Comparable operating profit                               115.3                    104.1              11         12
Profit Margin (%)                                            31                       30
Cash flow from operations (after
net capital expenditure)                                   92.4                     97.2



Sales in the CHEP businesses in the Rest of World grew steadily to US$377.5
million, an increase of 9% over the previous year.  Sales and profit for the
South African business grew strongly.  Australia continued to grow sales and
profit while Automotive containers was subdued as the automotive car
manufacturers suffered from higher levels of competition, the effect of higher
fuel prices, and a greater proportion of automotive component parts
manufacturing was shifted to offshore production.



Comparable operating profit was US$115.3 million, 12% above the previous year.



During the year, a new Perfect Plant was commissioned in South Africa. In 2007,
the latest technology will be deployed at two new facilities; one in Australia
and one in South Africa.  In addition, IT systems will be upgraded across
Asia-Pacific and Africa in 2007 at a cost of approximately US$10 million.
Following this, all major CHEP markets will be operating on the same IT
platform.



                                    8 of 40



RECALL


                                                                                                  % change
                                                        2006                        2005                  constant
                                                        US$m                        US$m        actual    currency
Sales revenue                                          565.7                       512.2            10          10
Comparable operating profit 1                           97.5                        84.4            16          15
Profit Margin (%)                                         17                          16
Cash flow from operations (after
net capital expenditure)                                77.3                       112.9
                                                                                  


1 A definition of comparable operating profit and a reconciliation to statutory
operating profit of US$72.8 million (2005: US$90.6 million) are shown on page 3.



Sales in Recall were US$565.7 million, an increase of 10%.  The AUSDOC
acquisition, which was made in November 2005, contributed to the increase in
sales.  Excluding acquisitions made during the year, principally AUSDOC,
Recall's underlying organic sales growth was 5%.  In North America, Secure
Destruction Services (SDS) was adversely impacted by lower average recycled
paper prices for the year while Document Management Solutions (DMS) sales were
affected by the loss of a large customer in the first half. Although there was a
modest recovery of paper prices in the second half of the year, the average
paper price for the year was approximately US$17 per tonne lower than the
previous year which adversely impacted both sales and profit.



Comparable operating profit was US$97.5 million, 15% higher than the previous
year, and reflected a positive contribution from AUSDOC (US$10 million) for
seven months of the financial year.  Recall North America delivered a solid
uplift in profit in the second half on the back of improved pricing, reduced
customer churn and strong cost control.



North America has invested considerable resources in sales and marketing to
address the large unvended (or not yet outsourced) DMS and SDS market.  The
benefits of this investment are beginning to be reflected in a significant
increase in new accounts and should contribute to a stronger organic growth rate
and profitability over the coming years.  The ongoing focus on service quality
and risk management has been a major factor in these account wins.



The strategic decision to focus on countries and businesses in Europe capable of
delivering adequate returns over the long term resulted in the sale of Recall
Italy.  Recall Europe continued to improve on its 2005 results with trading
improvements in France, Spain and the UK which included a gain on the disposal
of a property.



In Australia, AUSDOC was acquired for A$260 million (US$191 million) with effect
from 29 November 2005.  The integration of this business is progressing well and
is expected to deliver significant operational benefits.  The new purpose-built
mega-centre at Greystanes in Sydney (4.4 million carton capacity), is now fully
operational. Its construction will enable the rationalisation of seven
facilities across the Sydney region.



Elsewhere, in Asia, strong growth in carton holdings was achieved in Thailand,
Taiwan and Hong Kong.  The business in India was temporarily affected by
flooding in Mumbai.  The Asian region achieved a steady growth in profit in 2006
and will continue to selectively look at acquisition opportunities. Volume
growth in South America remained strong.



                                    9 of 40



Discontinued operations



Following the decision to focus on CHEP and Recall and divest the other
businesses, the reported results for the year ended 30 June 2006 are not
directly comparable with the previous year.



Businesses were progressively sold during 2006.  Sales and profits are included
in Brambles' results up until the following dates:



-        Eurotainer                           30 September 2005

-        BIS Northern Hemisphere              29 December 2005

-        Cleanaway Germany                    12 April 2006

-        Interlake                            24 April 2006

-        TMF                                  27 April 2006

-        TCR                                  22 May 2006

-        Cleanaway Australia                  19 June 2006

-        Industrial Services Australia        19 June 2006

-        Recall Italy                         20 June 2006



Under IFRS, depreciation, amortisation and the recognition of the share of
profits of joint ventures and associates cease once a decision has been taken to
reclassify an asset as being held for sale. This resulted in an increase in the
reported profit of US$92.7 million.  Excluding this benefit from the 2006
reported results for discontinued operations may provide a more meaningful
comparison with the previous year.  In this commentary, the use of the term 
'underlying' refers to profits excluding this benefit.



CLEANAWAY


                                                                                                 % change
                                                        2006                      2005                  constant
                                                        US$m                      US$m        actual     currency
Sales revenue                                        1,771.9                   1,895.3           (7)          (3)
Comparable operating profit 1                          241.5                     135.2            79          85
Cash flow from operations (after
net capital expenditure)                               172.9                     150.5



1 A definition of comparable operating profit and a reconciliation to statutory
operating profit of US$1,235.9 million (2005: US$135.2 million) are shown on
page 3.



Sales in Cleanaway were US$1,771.9 million.



Comparable operating profit increased to US$241.5 million reflecting the
substantial efforts by management to deliver the potential of these businesses
and the impact of the IFRS treatment of depreciation (US$70.9 million).  Strong
underlying profit growth was achieved by both Cleanaway UK and Australia
reflecting the significant improvement in these businesses from management
initiatives focusing on profitable growth.



UK



In the UK, sales were US$914.5 million, an increase of 5%. Underlying profit
grew to US$81.2 million, an increase of 104% as management actions continued to
gain traction.



On 30 June 2006 Brambles agreed to sell Cleanaway UK to Veolia ES Holdings plc,
a subsidiary of Veolia Environnement S.A. for a total cash consideration of £595
million (US$1,102 million).  In addition, Veolia has assumed responsibility for
the defined benefit pension funds of Cleanaway UK, which had an FRS17 deficit of
£56 million (US$104 million) as at 30 June 2005.  The sale is conditional upon
approval from the relevant competition authority which is expected within two
months.  Profit on sale will be recognised in 2007.



                                    10 of 40



Rest of World (Australia/New Zealand/Asia)



Sales in Rest of World were US$381.3 million.  The underlying profit in
Cleanaway Rest of World grew to US$39.7 million and was 20% higher than the
previous year driven by a strong performance by the Australian business.



The sale of Cleanaway Australia and New Zealand and Industrial Services
Australia to an affiliate of Kohlberg Kravis Roberts & Co. for A$1.8275 billion
in cash (US$1.34 billion) was executed unconditionally on 19 June 2006 and
completed on 5 July 2006.  The pre-tax profit on the sale of US$857.1 million
was recognised in 2006.



The sale of Cleanaway Asia is currently in progress and it is expected to be
sold during the first half of 2007.



Germany



In Germany, sales were US$476.1 million and underlying profit was US$49.7
million.



On 12 April 2006, Brambles completed the sale of Cleanaway Germany to SULO, a
German waste management company.



BRAMBLES INDUSTRIAL SERVICES


                                                                                                  % change
                                                        2006                       2005                 constant
                                                        US$m                       US$m       actual    currency
Sales revenue                                          441.5                      559.2          (21)        (19)
Comparable operating profit 1                           62.8                       68.0           (8)         (6)
Cash flow from operations (after
net capital expenditure)                                (4.5)                      39.0



1 A definition of comparable operating profit and a reconciliation to statutory
operating profit of US$51.0 million (2005: US$68.0 million) are shown on page 3.



Sales in Brambles Industrial Services were US$441.5 million and underlying
profit was US$42.9 million.



On 29 December 2005, Brambles sold the Northern Hemisphere operations to Harsco
Corporation.



As noted above, the sale of Industrial Services Australia to an affiliate of
Kohlberg Kravis Roberts & Co. was completed on 5 July 2006.



REGIONAL BUSINESSES


                                                                                                   % change
                                                         2006                       2005                 constant
                                                         US$m                       US$m       actual    currency
Sales revenue                                           160.8                      216.1          (26)        (26)
Comparable operating profit 1                             5.2                       14.2          (63)        (64)
Cash flow from operations (after
net capital expenditure)                                  3.7                       12.5



1 A definition of comparable operating profit and a reconciliation to statutory
operating profit of US$66.2 million (2005: US$14.2 million) are shown on page 3.



All the Regional Businesses were divested prior to the end of June 2006.



                                    11 of 40



SPECIAL ITEMS AND BUSINESS DISPOSALS



There are a number of special items associated with the restructuring and
divestment programme, which are split between continuing and discontinued
operations.  Special items from continuing operations for 2006 totalled a loss
of US$70.2 million before tax and principally comprised restructuring and
Unification costs of US$45.5 million and AUSDOC integration costs of US$21.3
million.



Special items from discontinued operations for 2006 totalled a gain of
US$1,017.1 million before tax.  The after-tax gain for special items in the
period was US$884.8 million.



Special items for continuing and discontinuing operations was an after-tax gain
of US$817.3 million.



With the completion of the divestment process and the proposed Unification
occurring in the first half of financial year 2007, a pre-tax gain on the sale
of Cleanaway UK of approximately US$700 million and further Unification costs
are expected to be recognised in 2007.



FINANCIAL POSITION



Cash flow from operations after net capital expenditure for continuing
operations improved by US$33.5 million to US$733.0 million compared with the
previous year.  The cash flow improvement resulted from stronger trading
partially offset by higher capital expenditure to support the business growth in
CHEP and the initial expenditure on Perfect Plants.



The cash flow from operations after net capital expenditure for the Group for
the period was US$900.7 million, similar to the previous year. The improvement
in continuing operations was offset by a lower cash generation by discontinued
operations.



Net finance costs were US$111.8 million, some US$18.3 million lower than the
previous year, largely as a result of lower average debt levels.



Net debt was reduced by US$518.2 million to US$1,690.1 million at 30 June 2006.
Proceeds from the divestment programme were partially offset by share buybacks
totalling US$645.2 million.  Since Brambles announced its intention to conduct
on-market buybacks or purchases of ordinary shares, Brambles Industries plc has
bought back a total of 59,562,443 ordinary shares and Brambles Industries
Limited has bought back 20,679,697 ordinary shares for cancellation.



Key financial coverage ratios continued to improve with net debt/EBITDA at 1.1
times (2005: 1.6 times) and gearing falling to 36.4%.



Net debt levels have continued to decline significantly since 30 June 2006 with
the receipt of US$1.3 billion on 5 July 2006 from the completion of the sale of
Cleanaway Australia and Industrial Services Australia.



CAPITAL EXPENDITURE



Capital expenditure on property, plant and equipment for continuing operations
in 2006 was US$586.4 million, US$53.3 million higher than the previous year.
This reflected additional pallet purchases to support CHEP's growth, expenditure
on the Perfect Plant initiative and the impact of higher lumber costs in North
America.



Capital expenditure in CHEP increased US$55.7 million to US$549.0 million
compared with the previous year.  CHEP America's capital expenditure increased
US$66.5 million to US$304.3 million.  CHEP Europe's capital expenditure
increased US$6.0 million to US$180.5 million.  Capital expenditure for CHEP Rest
of World declined US$16.8 million to US$64.2 million.



Capital expenditure in Recall for the full year was US$37.0 million, a decrease
of US$2.6 million compared with 2005.



Capital expenditure within discontinued operations was US$198.2 million, a
decrease of US$54.3 million.



                                    12 of 40




TAXATION



Brambles' effective tax rate for continuing operations was 34.8% of profit
before tax and special items, reflecting the geographic mix of earnings and the
rising proportion of profits from Europe and the USA.  Overall, the Group tax
rate for 2006 was 33.3% of profit before tax and special items.



At the time of the announcement that Brambles would focus on CHEP and Recall and
sell the other assets, it was expected that the tax payable on the divestments
would be minimal.  With the sales proceeds significantly exceeding expectations,
US$131.3 million of tax is now expected to be payable on the total gross
proceeds of US$3.6 billion.



DIVIDENDS



The Board has declared dividends totalling 48.0 Australian cents (19.364 pence)
per share and has reaffirmed its progressive dividend policy.



In addition to the 2006 Final Dividend of 13.5 Australian cents (5.446 pence),
the Board declared a Special Dividend of 34.5 Australian cents (13.918 pence).
The 2006 Final Dividend and Special Dividend will be fully franked for BIL
shareholders.



This Special Dividend includes 13.5 Australian cents (5.446 pence) in lieu of
the 2007 Interim Dividend (for the period up to 31 December 2006). The 2007
Interim Dividend would normally be paid in April 2007, however it is being
brought forward as Brambles Limited, the new holding company of the Group if the
Unification is approved, will only be permitted to declare dividends out of
profits generated by it subsequent to Unification. This means that the first
dividend paid by Brambles Limited post-Unification would be the final dividend
for 2007, which is scheduled to be paid in October 2007.



The remainder of the Special Dividend, consisting of 21.0 Australian cents
(8.472 pence) is in recognition of the success of Brambles' divestment
programme.



The dividends can be summarised as follows:



Brambles Industries Limited

-        2006 Final Dividend of 13.5 Australian cents per share, fully franked;

-        Special Dividend of 34.5 Australian cents per share, fully franked,
consisting of:

•         13.5 Australian cents in lieu of the 2007 Interim Dividend that
would normally be paid in April 2007; and

•         21.0 Australian cents in recognition of the success of the
divestment programme.



These dividends will be paid on 12 October 2006 to those shareholders registered
on 22 September 2006.  Brambles Industries Limited will go ex-dividend on 18
September 2006.



Brambles Industries plc

-        2006 Second Interim Dividend of 5.446 pence per share,

-        Special Dividend of 13.918 pence per share, consisting of:

•         5.446 pence in lieu of the 2007 Interim Dividend that would normally
be paid in April 2007; and

•         8.472 pence in recognition of the success of the divestment
programme.



These dividends will be paid on 12 October 2006 to those shareholders registered
on 22 September 2006.  Brambles Industries plc will go ex-dividend on 20
September 2006.

                                    13 of 40

FRANKING CREDITS



The capacity of Brambles to frank future dividends has been significantly
reduced as a result of the divestment of the Australian businesses of Cleanaway
and BIS, as Australian tax paid on the operating profits of the Cleanaway and
BIS businesses in Australia had previously been a source of franking credits for
BIL.



Currently BIL pays dividends to BIL Shareholders and BIP pays dividends to BIP
Shareholders, with the quantum of dividends being equalised on a per-share basis
as required by the DLC Structure.  Unification, which is subject to court and
shareholder approval, will result in Brambles Limited becoming the single
holding company of the Brambles Group, paying dividends to all Brambles
shareholders.



With the divestment of the Australian businesses and the enlarged shareholder
base being paid dividends from the Australian holding company post Unification,
Brambles' future dividends are expected to be franked to between 20% and 30% for
the near term.



Post Unification, the unfranked components of Brambles' dividends paid to
non-Australian residents are expected to be exempt from Australian dividend
withholding tax in the near to medium term, due to the mix of Brambles' income
from sources outside Australia.



UNIFICATION


The objective remains to unify the dual-listed companies structure under a
single Australian holding company (called Brambles Limited), with a primary
listing on the ASX and a secondary listing on the LSE, by early December 2006.



Unification is to be effected by way of schemes of arrangement and will require
court approval in both Australia and the United Kingdom as well as shareholder
approval by shareholders of both BIL and BIP at separate Extraordinary General
Meetings.



It is intended that a Cash Alternative will be provided as part of the
Unification, under which shareholders will be able to tender all or part of
their shareholdings to Brambles Limited.  The maximum amount which Brambles
Limited will make available under the Cash Alternative is US$2.2 billion.



The full terms and conditions of the schemes (including the Cash Alternative)
will be set out in the Information Memorandum and related documentation to be
sent to shareholders. The Information Memorandum is expected to be sent to
shareholders on 29 September 2006.



Upon completion of the Cleanaway UK sale, the asset disposal programme will have
generated total gross proceeds of US$3.6 billion.  This outcome is substantially
above original expectations and has resulted in surplus capital, some of which
has been used in on-market share buy backs (US$645.2 million). While maintaining
a conservative financial structure, the Group will also be able to pay a Special
Dividend (US$416.2 million) and fund the Cash Alternative on Unification
(maximum US$2.2 billion).



                                    14 of 40



SHAREHOLDER MEETINGS



The respective Annual General Meetings and Extraordinary General Meetings for
BIL and BIP will be held on the same days.  These dates are shown in the table
below.



KEY DATES


Brambles Industries Limited                                   Date                   Location
  Information Memorandum mailed                              29 September 2006
  Annual General Meeting                                       9 November 2006      Melbourne
  Extraordinary Meeting                                        9 November 2006      Melbourne

Brambles Industries plc
  Information Memorandum mailed                              29 September 2006
  Annual General Meeting                                       1 November 2006        London
  Extraordinary Meeting                                        1 November 2006        London

Unification completion                                     Early December 2006



OUTLOOK



A priority over the next several months is to complete the Unification of the
dual listed companies structure and list the new company, Brambles Limited, on
the Australian Stock Exchange with a secondary listing on the London Stock
Exchange.  Subject to shareholder and court approval, Brambles remains on track
to complete this process by early December.

Overall, CHEP is expected to deliver another year of good performance in 2007.

CHEP Americas is expected to show robust growth in sales with ongoing
operational improvements.

CHEP Europe is expected to deliver another strong performance with continued
margin expansion and steady sales growth.

CHEP Rest of World continues to trade well.

Recall is expected to build on improvements seen in the second half of 2006.
Recall North America should benefit from new customer contracts.  Recall Europe
is expected to perform well.  In Asia-Pacific, the integration of AUSDOC
continues as planned.

The outlook for Brambles remains positive.  We expect to build on the momentum
of recent years and in the early part of the current financial year Brambles is
performing well.  In 2007, we expect further good progress in both CHEP and
Recall as well as solid cash generation.

                                    15 of 40




Brambles


Consolidated income statement
for the year ended 30 June 2006

                                                  2006                                   2005
                                      Before                  Result         Before                    Result
                                     special    Special 1     for the       special     Special 1     for the
                                       items        items        year         items         items        year
                             Note             US$ million                             US$ million

Continuing operations
Sales revenue                2, 3    3,522.1             -    3,522.1       3,274.8              -    3,274.8
Other income                  3        126.6             -      126.6         121.8              -      121.8
Operating expenses           3, 4   (2,881.0)        (70.2)  (2,951.2)     (2,799.5)           6.2   (2,793.3)
Share of results of joint
   ventures and associates    13         3.6             -        3.6           2.7              -        2.7
Operating profit                       771.3         (70.2)     701.1         599.8            6.2      606.0

Finance revenue                          8.1             -        8.1           7.2              -        7.2
Finance costs                         (119.9)            -     (119.9)       (137.3)             -     (137.3)
Net finance costs                     (111.8)            -     (111.8)       (130.1)             -     (130.1)

Profit before tax                      659.5         (70.2)     589.3         469.7            6.2      475.9

Tax expense                  4, 7     (229.4)          2.7     (226.7)       (160.4)          (2.4)    (162.8)

Profit from
   continuing operations               430.1         (67.5)     362.6         309.3            3.8      313.1

Profit from
   discontinued operations    5        217.0         884.8    1,101.8         145.2           (9.5)     135.7

Profit for the year                    647.1         817.3    1,464.4         454.5           (5.7)     448.8

Profit attributable to:
- Minority interest                      1.0             -        1.0           1.8              -        1.8
- Members of the parent entities       646.1         817.3    1,463.4         452.7           (5.7)     447.0


Earnings per share (cents)    8
Total
- basic                                                          86.7                                    26.4
- diluted                                                        85.2                                    26.2
Continuing operations
- basic                                                          21.5                                    18.5
- diluted                                                        21.1                                    18.4


1  Special items comprise impairments, exceptional items, fair value adjustments and amortisation of acquired
   non-goodwill intangible assets (other than software).  Exceptional items are items of income or expense which are
   considered to be outside the ordinary course of business and are, either individually or in aggregate, material to
   Brambles or to the relevant business segment.  Refer to Notes 4 and 5.



                                    16 of 40



Brambles


Consolidated balance sheet
as at 30 June 2006
                                                                                                   2006           2005
                                                                                        Note       US$m           US$m
ASSETS
Current assets
Cash and cash equivalents                                                                         129.4          188.1
Trade and other receivables                                                              16     2,056.6        1,098.0
Inventories                                                                                        26.3           66.0
Derivative financial instruments                                                                    7.1              -
Other assets                                                                                       41.5           66.8
                                                                                                2,260.9        1,418.9
Assets classified as held for sale                                                       5        648.8            9.3
Total current assets                                                                            2,909.7        1,428.2

Non-current assets
Other receivables                                                                                   8.8           29.9
Equity-accounted investments                                                                       23.1          126.6
Property, plant and equipment                                                                   2,916.7        3,934.2
Goodwill                                                                                          562.1          938.5
Intangible assets                                                                                 155.1          133.6
Deferred tax assets                                                                                17.6          135.8
Derivative financial instruments                                                                    4.1              -
Other assets                                                                                        0.6           15.0
Total non-current assets                                                                        3,688.1        5,313.6
Total assets                                                                                    6,597.8        6,741.8

LIABILITIES
Current liabilities
Trade and other payables                                                                          757.8        1,029.2
Borrowings                                                                                         59.4           25.9
Derivative financial instruments                                                                    0.3              -
Tax payable                                                                                       235.5           94.3
Provisions                                                                                        126.0          177.7
                                                                                                1,179.0        1,327.1
Liabilities directly associated with assets classified as held for sale                  5        331.5              -
Total current liabilities                                                                       1,510.5        1,327.1

Non-current liabilities
Borrowings                                                                                      1,760.1        2,370.5
Provisions                                                                                         37.8           99.0
Retirement benefit obligations                                                                     64.0          189.0
Deferred tax liabilities                                                                          265.9          357.1
Other liabilities                                                                                   6.5           11.8
Total non-current liabilities                                                                   2,134.3        3,027.4
Total liabilities                                                                               3,644.8        4,354.5
Net assets                                                                                      2,953.0        2,387.3

EQUITY
Contributed equity                                                                       10       957.2        1,080.0
Reserves                                                                                          457.5          474.7
Retained earnings                                                                               1,534.4          824.9
Parent entities interest                                                                        2,949.1        2,379.6
Minority interest                                                                                   3.9            7.7
Total equity                                                                             11     2,953.0        2,387.3



                                    17 of 40

Brambles


Consolidated statement of recognised income and expense
for the year ended 30 June 2006
                                                                                                   2006           2005
                                                                                                   US$m           US$m

Actuarial gains/(losses) on defined benefit pension plans:
- Gains/(losses) in the year                                                                       26.8           (9.2)
- Entities disposed, taken to profit                                                                7.3              -

Exchange differences on translation of:
- Foreign operations                                                                               69.4           65.5
- Entities disposed taken to profit                                                              (135.2)             -

Cash flow hedges:
- Gains taken to equity                                                                             7.8              -
- Transferred to profit or loss                                                                    (3.2)             -

Income tax:
- On items taken directly to or transferred directly from equity                                   (8.6)           1.8
- On items transferred to profit or loss                                                           (1.5)             -

Net (expense)/income recognised directly in equity                                                (37.2)          58.1

Profit for the year                                                                             1,464.4          448.8

Total recognised income and expense for the year                                                1,427.2          506.9

Attributable to:
Minority interest                                                                                   1.0            1.8
Members of the parent entities                                                                  1,426.2          505.1
                                                                                                1,427.2          506.9

Adjustment on initial adoption of IAS 32 / AASB 132 and
IAS 39 / AASB 139:
- Taken to retained earnings                                                                       (2.2)             -
- Taken to reserves                                                                                 2.0              -
                                                                                                   (0.2)             -




                                    18 of 40



Brambles


Consolidated cash flow statement
for the year ended 30 June 2006
                                                                                            2006                 2005
                                                                      Note                  US$m                 US$m

Cash flows from operating activities
Receipts from customers                                                                  6,785.9              6,640.1
Payments to suppliers and employees                                                     (5,271.9)            (5,080.7)
Cash generated from operations                                                           1,514.0              1,559.4
Dividends received from joint ventures and associates                                       16.1                 13.5
Interest received                                                                            8.4                  6.3
Interest paid                                                                             (127.9)              (118.9)
Income taxes paid                                                                         (221.5)              (169.1)
Net cash inflow from operating activities                              12                1,189.1              1,291.2

Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired                                         (199.8)               (33.6)
Proceeds from disposal of businesses                                                     1,084.3                 12.0
Acquisition of investments in joint ventures and associates                                    -                (16.7)
Increase in other investments                                                               (2.9)               (11.6)
Disposals of other investments                                                               2.2                 20.2
Purchases of property, plant and equipment                                                (784.6)              (785.6)
Proceeds from sale of property, plant and equipment                                        176.3                119.9
Purchases of intangible assets                                                             (24.2)                (7.8)
Loan outflows with joint ventures and associates                                            (2.0)                (7.1)
Loan inflows with joint ventures and associates                                              5.8                  3.0
Net cash inflow/(used) in investing activities                                             255.1               (707.3)

Cash flows from financing activities
Proceeds from borrowings                                                                 3,330.2              2,507.5
Repayments of borrowings                                                                (3,940.2)            (2,711.9)
Net (outflow)/proceeds from hedge borrowings                                                (5.3)                 1.0
Proceeds from issue of ordinary shares                                                      64.0                 10.9
Buyback of ordinary shares                                                                (645.2)                   -
Dividends paid to Brambles' shareholders                                9                 (296.7)              (256.5)
Dividends paid to minority interests                                                        (0.6)                (0.7)
Net cash used in financing activities                                                   (1,493.8)              (449.7)

Net (decrease)/increase in cash and cash equivalents                                       (49.6)               134.2
Cash and cash equivalents at beginning of the year                                         188.0                 50.6
Effect of exchange rate changes                                                             (9.0)                 3.2
Cash and cash equivalents at end of the year                           12                  129.4                188.0



                                    19 of 40

Brambles

Notes to the consolidated financial information

for the year ended 30 June 2006



Note 1. Basis of preparation



Brambles Industries Limited (ABN 22 000 129 868) (BIL) and Brambles Industries
plc (registered number 4134697) (BIP) and their controlled entities are referred
to collectively throughout this Preliminary Final Report as Brambles.

Key features of the DLC structure

The dual-listed companies (DLC) structure is essentially a contractual
arrangement between BIL and BIP under which they operate as if they were a
single economic enterprise, while retaining their separate legal identities, tax
residencies and stock exchange listings. The arrangement, which was implemented
in 2001, 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 shareholders.

On 29 November 2005, Brambles announced a corporate reorganisation to unify BIL
and BIP. It is envisaged that a newly formed Australian company, Brambles
Limited, will acquire all the outstanding shares in BIL and BIP on a one-for-one
basis under separate schemes of arrangement (Schemes). BIL and BIP shareholders
will therefore have the same economic interest in Brambles Limited as they
currently have under the DLC structure. Brambles Limited will have its primary
listing on the Australian Stock Exchange and a secondary listing on the London
Stock Exchange. The Schemes will require separate approval by BIL and BIP
shareholders, relevant regulatory authorities and courts in Australia and the
United Kingdom. Unification is anticipated to occur in December 2006, after all
approvals have been obtained. The proposed unification had no impact on the
preparation of the financial statements at 30 June 2006.

Basis of accounting

The financial statements on which this financial information is based, have been
prepared in accordance with International Financial Reporting Standards as
adopted for use in the European Union (IFRS) and Australian Equivalents to
International Financial Reporting Standards (AIFRS), and in accordance with the
requirements of the Corporations Act 2001 and with those parts of the Companies
Act 1985 applicable to companies reporting under IFRS. They comply with
applicable accounting standards and other authoritative pronouncements of the
International Accounting Standards Board (IASB), the Australian Accounting
Standards Board (AASB), the International Financial Reporting Interpretations
Committee (IFRIC) and the Urgent Issues Group (UIG).

Generally, AIFRS are identical to IFRS except that in certain instances AIFRS
require additional disclosures to be made or prohibit accounting treatments
permitted by IFRS. Throughout the financial statements reference is made to IFRS
which should be read to include AIFRS. Accounting policies have been selected to
ensure concurrent compliance with both IFRS and AIFRS.

It is the first time that Brambles has prepared full year financial statements
under IFRS. As such, the financial statements are covered by IFRS 1: First-time
Adoption of IFRS and AASB 1: First-time Adoption of AIFRS. IFRS have been
consistently applied except for those relating to financial instruments.
Brambles has used the exemption available under IFRS 1 and AASB 1 to apply IAS
32 / AASB 132: Financial Instruments: Disclosure and Presentation and IAS 39 /
AASB 139: Financial Instruments: Recognition and Measurement from 1 July 2005.

In the prior year, the Annual Report of BIL was prepared under Australian GAAP
(AGAAP) and the Annual Review of BIP under UK GAAP. In preparing the financial
statements under IFRS, management has amended certain accounting and valuation
methods that previously applied under UK GAAP and AGAAP. This financial
information should be read in conjunction with the consolidated financial report
of Brambles for the half-year ended 31 December 2005 within which are set out
Brambles' significant accounting policies under IFRS and explanations of the
impacts of the transition from AGAAP and UK GAAP to IFRS.


                                    20 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006



Note 1. Basis of preparation - continued

In preparing these first full year financial statements under IFRS, the
following adjustments have been made to the unaudited 2005 full year results
that were reported within the consolidated financial report for the half year
ended 31 December 2005:

•        Retirement benefit obligations at 30 June 2005 have been reduced by
US$52.5 million and deferred tax assets decreased by US$15.7 million, with a
corresponding decrease of US$52.5 million (US$36.8 million after tax) in the
actuarial loss on defined benefit plans reported in the 2005 consolidated
statement of recognised income and expense. The amounts previously reported were
based on the fund membership data and actuarial information available at the
time of preparing the 2005 Annual Report and Annual Review. Better quality fund
membership data and revised actuarial estimates as at 30 June 2005 were received
in April 2006 and have been reflected in the 2005 financial results; and

•        Other non-current liabilities at 30 June 2005 have increased by US$4.6
million, with a corresponding decrease of US$1.4 million in deferred tax
liabilities as a result of a changed interpretation of IAS 17 / AASB 117: Leases
in relation to operating leases with contractually fixed rental increases. The
expense recognition of such operating lease payments is now on a straight-line
basis over the life of the lease, rather than on the basis of the cash flow in
the lease, which was the treatment previously applied by Brambles. There was no
material impact on profits for the year ended 30 June 2005.



Foreign currency

The principal exchange rates affecting Brambles were:
                                            US$:A$        US$:euro            US$:£
Average           2006                      0.7474          1.2246           1.7889
                  2005                      0.7532          1.2686           1.8557
Year end          30 June 2006              0.7425          1.2813           1.8525
                  30 June 2005              0.7615          1.2116           1.7960



Rounding of amounts

As Brambles is a company of a kind referred to in ASIC Class Order 98/0100,
relevant amounts in the financial statements and Directors' Report have been
rounded to the nearest hundred thousand US dollars or, in certain cases, to the
nearest thousand US dollars.

References to 2006 and 2005 are to the financial years ended 30 June 2006 and 30
June 2005 respectively.

                                    21 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 2.  Business segment analysis

Brambles' material continuing business segments are CHEP (pallet and container pooling) and Recall (information
management).

Discontinued operations comprise Cleanaway (waste management), Brambles Industrial Services, Regional Businesses and
Recall's Italian operations, which were either divested in 2006 or are currently being divested.

Intersegment revenue during the year was immaterial.


                                                                          Total revenue                Sales revenue
                                                                           2006      2005               2006      2005
                                                                           US$m      US$m               US$m      US$m

CHEP                                                                    3,078.8   2,874.6            2,956.4   2,762.6
Recall                                                                    569.9     522.0              565.7     512.2
Continuing operations                                                   3,648.7   3,396.6            3,522.1   3,274.8

Cleanaway                                                               1,796.2   1,912.3            1,771.9   1,895.3
Brambles Industrial Services                                              444.7     573.8              441.5     559.2
Regional Businesses                                                       161.2     217.1              160.8     216.1
Other                                                                      19.4      18.6               19.4      18.4
Discontinued operations                                                 2,421.5   2,721.8            2,393.6   2,689.0

Total                                                                   6,070.2   6,118.4            5,915.7   5,963.8

                                                                           Comparable                 Special items,
                                     Operating profit 1                operating profit 2               before tax
                                            2006        2005               2006      2005               2006      2005
                                            US$m        US$m               US$m      US$m               US$m      US$m

CHEP                                       703.8       534.3              703.8     534.3                  -         -
Recall                                      72.8        90.6               97.5      84.4              (24.7)      6.2
Corporate                                  (75.5)      (18.9)             (30.0)    (18.9)             (45.5)        -
Continuing operations                      701.1       606.0              771.3     599.8              (70.2)      6.2

Cleanaway 3                              1,235.9       135.2              241.5     135.2              994.4         -
Brambles Industrial Services                51.0        68.0               62.8      68.0              (11.8)        -
Regional Businesses                         66.2        14.2                5.2      14.2               61.0         -
Other                                      (25.5)       (1.4)               1.0      (1.4)             (26.5)        -
Discontinued operations                  1,327.6       216.0              310.5     216.0            1,017.1         -

Total                                    2,028.7       822.0            1,081.8     815.8              946.9       6.2



1 Operating profit is segment revenue less segment expense and excludes net finance costs.
2 Comparable operating profit is profit before special items, finance costs and tax which the Directors consider to be
  a useful measure of underlying business performance.  The difference between comparable operating profit and
  operating profit in the segment report is due to special items.
3 Operating profit for the Cleanaway segment includes the gain on disposal of both Cleanaway Australia and Industrial
  Services Australia as they were divested as one transaction.



                                    22 of 40

Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 2.  Business segment analysis - continued
                                                            Capital expenditure                      Depreciation
                                                          (including acquisitions)                 and amortisation
                                                                 2006                2005             2006       2005
                                                                 US$m                US$m             US$m       US$m

CHEP                                                            555.3               484.1            360.7      361.3
Recall                                                          144.7                50.6             50.2       30.4
Corporate                                                         1.3                 0.2              1.1        1.3
Continuing operations                                           701.3               534.9            412.0      393.0

Cleanaway                                                       106.6               165.6             54.7      145.6
Brambles Industrial Services                                     71.6                86.7             21.1       48.5
Regional Businesses                                               8.7                14.7              4.4       16.0
Other                                                             0.6                 1.6              0.5        2.3
Discontinued operations                                         187.5               268.6             80.7      212.4

Total                                                           888.8               803.5            492.7      605.4

                                                               Segment assets                     Segment liabilities
                                                                  2006                2005             2006       2005
                                                                  US$m                US$m             US$m       US$m

CHEP                                                          3,445.8             3,364.9            588.4      598.6
Recall                                                          941.4               705.2            131.9      110.4
Corporate 4                                                   1,382.3                23.6            272.1       94.6
Continuing operations                                         5,769.5             4,093.7            992.4      803.6

Cleanaway                                                       610.2             1,478.4            321.9      531.6
Brambles Industrial Services                                        -               504.6                -      108.3
Regional Businesses                                                 -               166.0                -       45.2
Other                                                               -                31.9                -       18.0
Discontinued operations                                         610.2             2,180.9            321.9      703.1

Segment assets and liabilities                                6,379.7             6,274.6          1,314.3    1,506.7

Cash and borrowings                                             129.4               188.1          1,819.5    2,396.4
Current tax balances                                              9.6                16.7            244.6       94.3
Deferred tax balances                                            41.6               135.8            266.4      357.1
Equity-accounted investments                                     37.5               126.6                -          -
Total assets and liabilities                                  6,597.8             6,741.8          3,644.8    4,354.5



4  Corporate assets include a US$1,341.6 million receivable in respect of business disposals which was settled in cash
   on 5 July 2006.



                                    23 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 3.  Profit from ordinary activities - continuing operations
                                                                                              2006                 2005
                                                                                              US$m                 US$m
a) Revenue and other income - continuing operations
Sales revenue                                                                             3,522.1              3,274.8

Net gains on disposals of property plant and equipment                                       29.1                 15.4
Other operating income                                                                       97.5                106.4
Other income                                                                                126.6                121.8

Total revenue                                                                             3,648.7              3,396.6

b) Operating expenses - continuing operations
Employment costs                                                                            697.1                663.2
Service suppliers:
- Transport                                                                                 636.3                560.1
- Repairs and maintenance                                                                   231.2                227.0
- Subcontractors and other service suppliers                                                436.8                428.8
Raw materials and consumables                                                               176.1                184.1
Occupancy                                                                                   147.4                136.3
Depreciation of property, plant and equipment                                               364.1                358.5
Irrecoverable pooling equipment provision expense                                            93.7                114.7
Amortisation of:
- Software                                                                                   30.6                 31.5
- Acquired intangible assets (other than software)                                           14.6                  1.3
- Deferred expenditure                                                                        2.7                  1.7
Other                                                                                       120.6                 86.1
                                                                                          2,951.2              2,793.3

c) Net foreign exchange gains and losses - continuing operations
Net losses included in operating profit                                                      (0.5)                (0.3)
Net gains included in net finance costs                                                       0.1                  7.2
                                                                                             (0.4)                 6.9

                                    24 of 40

Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 4.  Special items - continuing operations
                                                                                          2006
                                                                                          US$m
                                                                              Before tax      Tax             After tax
Amortisation of acquired intangible assets (other than software)                   (3.4)     1.0                  (2.4)
Exceptional items:
- Restructuring and unification costs 1                                           (45.5)     0.5                 (45.0)
- AUSDOC integration costs 2                                                      (21.3)     1.2                 (20.1)
Special items from continuing operations                                          (70.2)     2.7                 (67.5)

                                                                                          2005
                                                                                          US$m
                                                                              Before tax      Tax             After tax
Amortisation of acquired intangible assets (other than software)                   (1.3)     0.4                  (0.9)
Exceptional items:
- Gain on disposal of investment 3                                                  7.5     (2.8)                  4.7
Special items from continuing operations                                            6.2     (2.4)                  3.8


1 During 2006, Brambles incurred advisers' fees (US$33.4 million) and redundancy and office closure costs (US$12.1
  million) in connection with the restructuring, future direction for the restructured Group and the DLC unification
  that was announced on 29 November 2005. Further amounts were incurred within discontinued operations.
2 The majority of the brands and software acquired as part of the AUSDOC acquisition during 2006 will not be required
  under Recall ownership, as the AUSDOC operation is being immediately integrated with Recall's existing operations. In
  accordance with the requirements of IFRS 3 / AASB 3: Business Combinations, the brands and software acquired were
  fair valued at acquisition date without regard to the acquirer's intentions for those assets. The intangible assets
  were fully amortised in 2006 over their effective life to Recall. The accelerated amortisation expense in 2006
  amounts to US$14.7 million, of which US$11.2 million relates to the AUSDOC brand and US$3.5 million relates to
  software. Other restructuring and integration costs of US$6.6 million were also incurred. No further integration
  costs are expected.
3 In March 2005, Recall sold its investment in Hyland Software for net proceeds of US$19.6 million, resulting in a
  profit on sale of US$7.5 million.



                                    25 of 40

Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006



Note 5.  Discontinued operations

a)  Description

On 29 November 2005, Brambles announced that it would focus on growing the CHEP
and Recall businesses and that it would divest all its other businesses. The
divestments of Brambles Industrial Services Northern Hemisphere, Cleanaway
Germany, Cleanaway Australia, Industrial Services Australia, Recall Italy and
Regional Businesses were recognised in 2006. The contract for the divestment of
Cleanaway UK for proceeds of US$1,102.2 million was signed in June 2006 and is
expected to be completed in the first half of 2007, subject to regulatory
clearance. The sale process for Cleanaway Asia is underway. All these businesses
are presented as discontinued operations in this financial report.


b)  Income statement and cash flow information - discontinued operations                             2006        2005
                                                                                                     US$m        US$m

Total revenue                                                                                     2,421.5     2,721.8
Operating expenses                                                                               (2,121.7)   (2,519.9)
Share of results of joint ventures and associates (Note 13c)                                         10.7        14.1
Profit before tax and special items                                                                 310.5       216.0
Special items                                                                                     1,017.1           -
Profit before tax from discontinued operations                                                    1,327.6       216.0

Tax expense:
- On profit before tax and special items                                                            (93.5)      (70.8)
- On special items                                                                                 (132.3)          -
- Special tax items                                                                                     -        (9.5)
Total tax expense from discontinued operations                                                     (225.8)      (80.3)

Profit for the year from discontinued operations                                                  1,101.8       135.7

Net cash inflow from operating activities                                                           245.6       355.8
Net cash used in investing activities                                                              (131.2)     (238.2)
Net cash used in financing activities                                                                (0.6)       (0.7)
Net increase in cash from discontinued operations 1                                                 113.8       116.9


    1 Net increase in cash from discontinued operations excludes proceeds from disposal of businesses.



                                    26 of 40

Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006



Note 5.  Discontinued operations - continued


c)  Special items - discontinued operations                                                          2006
                                                                                                     US$m
                                                                                         Before tax      Tax  After tax
Exceptional items:
Gain / (loss) recognised on completed disposals (Note 5d) :
- Eurotainer 1                                                                                61.0    (16.3)      44.7
- BIS Northern Hemisphere 2                                                                    0.7      1.1        1.8
- Cleanaway Germany 3                                                                        179.3     (7.2)     172.1
- Interlake 4                                                                                (19.5)     6.1      (13.4)
- TMF 5                                                                                        8.8     (1.3)       7.5
- TCR 6                                                                                       10.7        -       10.7
- Cleanaway and Industrial Services Australia 7                                              857.1   (113.7)     743.4
- Recall Italy 8                                                                             (26.5)       -      (26.5)
                                                                                           1,071.6   (131.3)     940.3

Loss on remeasurement to fair value less costs to sell 9                                     (25.0)       -      (25.0)
Costs incurred on disposal activity yet to close 10                                          (11.2)       -      (11.2)
Restructuring and unification costs 11                                                       (12.5)    (2.8)     (15.3)
Other restructuring costs 12                                                                  (5.8)     1.8       (4.0)
                                                                                             (54.5)    (1.0)     (55.5)

Special items from discontinued operations                                                 1,017.1   (132.3)     884.8

                                                                                                     2005
                                                                                                     US$m
                                                                                         Before tax      Tax  After tax
Exceptional items:
- Tax on Cleanaway Germany 13                                                                    -    (28.5)     (28.5)
- Tax on Meineke Car Centers, Inc 14                                                             -     19.0       19.0
Special items from discontinued operations                                                       -     (9.5)      (9.5)


1  On 21 December 2005, Brambles completed the sale of Eurotainer and received proceeds of US$105.5 million, resulting
   in a pre-tax profit on sale of US$61.0 million, including a foreign currency translation reserve (FCTR) credit of
   US$13.6 million.
2  On 29 December 2005, Brambles completed the sale of BIS Northern Hemisphere business and received proceeds of
   US$238.2 million, subject to a working capital adjustment, resulting in a pre-tax profit on sale of US$0.7 million,
   net of an FCTR charge of US$3.4 million.
3  On 12 April 2006, Brambles completed the sale of Cleanaway Germany and received proceeds of US$738.5 million,
   resulting in a pre-tax profit on sale of US$179.3 million, including an FCTR credit of  US$74.3 million.
4  On 24 April 2006, Brambles completed the sale of Interlake and received proceeds of US$41.5 million, subject to a
   working capital adjustment, resulting in a net pre-tax loss on sale of US$19.5 million.
5  On 27 April 2006, Brambles completed the sale of TMF, its French logistics business, and received proceeds of
   US$19.4 million, resulting in a pre-tax profit on sale of US$8.8 million, including an FCTR credit of US$0.8
   million.
6  On 22 May 2006, Brambles completed the sale of TCR and received proceeds of US$32.7 million, resulting in a pre-tax
   profit on sale of US$10.7 million, including an FCTR credit of US$0.1 million.



                                    27 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 5.  Discontinued operations - continued

7  On 19 June 2006, Brambles announced the sale of Cleanaway and Industrial Services Australia, including its shares in
   Enviroguard, with no material conditions precedent to completion. The sale completed on 5 July 2006 and Brambles
   received proceeds of US$1,341.6 million, resulting in a pre-tax profit on sale of US$857.1 million, including an
   FCTR credit of US$56.3 million. This transaction has been recognised in 2006 since effective control passed on
   execution of the contract. For segment reporting purposes, the proceeds have been included in the Cleanaway segment.
8  During 2006, it was decided to sell Recall's Italian operations, which were previously recorded in the Recall
   segment. An impairment loss of US$14.0 million was recognised in the first half to reduce the carrying amount of the
   disposal assets to estimated fair value, less costs to sell. A further US$6.0 million loss was recognised in the
   second half on completion of the sale on 20 June 2006 for proceeds of US$9.3 million. This resulted in a net pre-tax
   loss on sale of US$26.5 million, including an FCTR charge of US$6.5 million.
9  During 2006, a divestment programme commenced to sell Cleanaway Asia, which is expected to close in 2007. A loss of
   US$25.0 million has been recognised to reduce the carrying amount of the disposal assets to estimated fair value
   less costs to sell.
10 During 2006, costs of US$11.2 million, principally advisers' fees, were incurred in relation to the divestment of
   Cleanaway UK, the sale agreement for which was signed on 30 June 2006 and which is expected to complete, subject to
   regulatory clearance, in 2007.
11 During 2006, Brambles incurred redundancies, office closure and other expenses associated with the closure of its
   Brambles Industrial Services headquarters of US$12.5 million in connection with the restructuring and the DLC
   unification that was announced on 29 November 2005. Further amounts were incurred within continuing operations.
12 During 2006, restructuring costs of US$5.8 million, principally redundancies, were incurred by Cleanaway UK.

13 During 2005, a detailed review was undertaken of the allocation of goodwill and related tax balances to the
   underlying subsidiaries of Cleanaway Germany. As a result, an additional deferred tax liability of US$28.5 million
   was recognised.
14 During 2005, the tax liability arising on the sale of Meineke Car Care Centers, Inc. in 2004 was reassessed, leading
   to a reduction in the liability of US$19.0 million.



                                    28 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 5.  Discontinued operations - continued
d) Details of disposal transactions recognised in 2006

The contribution of divested operations to profit after tax, excluding the net gains on disposal, was:     2006   2005
                                                                                                           US$m   US$m

Eurotainer                                                                                                 20.8    6.1
BIS Northern Hemisphere                                                                                    13.4   15.8
Cleanaway Germany                                                                                          64.0    7.8
Interlake                                                                                                   2.9    2.0
TMF                                                                                                         1.7    0.8
TCR                                                                                                         0.6    1.1
Cleanaway and Industrial Services Australia                                                                83.6   51.4
Recall Italy                                                                                                0.7   (2.8)


                                                                                                             2006
The profit on sale after income tax was:                                                                     US$m

Cash consideration received                                                                               1,063.0
Cash and cash equivalents disposed                                                                           81.5
Costs settled in cash                                                                                        40.6
Deferred consideration, received 5 July 2006                                                              1,341.6
Total disposal consideration                                                                              2,526.7

Carrying amounts of assets and liabilities sold:
- Cash and cash equivalents                                                                                  81.5
- Receivables                                                                                               286.7
- Inventories                                                                                                33.4
- Other assets                                                                                               26.4
- Current and deferred tax assets                                                                            39.2
- Property, plant and equipment                                                                             870.3
- Goodwill and intangible assets                                                                            409.2
- Equity-accounted investments                                                                               80.0
- Trade and other payables                                                                                 (200.6)
- Current and deferred tax liabilities                                                                     (119.2)
- Retirement benefit obligations                                                                            (23.1)
- Provisions                                                                                                (54.1)
- Debt                                                                                                      (10.8)
Carrying amount of net assets sold                                                                        1,418.9

Equity reserves brought to account on disposal:
- Retirement benefit obligations (net of tax)                                                                 4.5
- Foreign currency translation reserve taken to profit or loss                                             (135.2)
- Outside equity interest                                                                                    (4.6)
Net impact on equity reserves                                                                              (135.3)

Gross gain on disposal                                                                                    1,243.1
Disposal costs                                                                                             (157.5)
Impairment loss in first half                                                                               (14.0)
Gain on sale before income tax                                                                            1,071.6




                                    29 of 40

Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 5.  Discontinued operations - continued
e)  Carrying amounts of assets and liabilities - discontinued operations                                          2006
                                                                                                                  US$m
Assets
Property, plant and equipment                                                                                    338.7
Goodwill and intangible assets                                                                                    92.6
Receivables                                                                                                      160.3
Other assets                                                                                                      18.6
Segment assets (Note 2)                                                                                          610.2
Equity-accounted investments                                                                                      14.4
Current and deferred tax assets                                                                                   24.2
Total assets                                                                                                     648.8

Liabilities
Trade and other payables                                                                                         133.7
Retirement benefit obligations                                                                                    85.0
Provisions                                                                                                       103.2
Segment liabilities (Note 2)                                                                                     321.9
Current and deferred tax liabilities                                                                               9.6
Total liabilities                                                                                                331.5







Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 6.  Business combination

On 13 October 2005, Brambles announced it had agreed to purchase 100% of the issued share capital of AUSDOC Holdings
Pty Limited, an information management business, based in Melbourne, Australia. Change of control was effective on 29
November 2005, following regulatory approval of the transaction.

For the period from 29 November 2005 to 30 June 2006, AUSDOC contributed revenues of US$33.7 million and operating
profit after tax of US$5.7 million, before an exceptional expense of US$18.6 million. These results are included within
the Recall business segment. If the acquisition had occurred on 1 July 2005, Brambles' revenues and profit after tax
for 2006 would have been US$23.3 million higher and US$1.6 million lower respectively, after allowing for finance
costs.


The fair value of the AUSDOC assets acquired, liabilities assumed                            2006
and goodwill were as follows:                                                                US$m

Cash paid                                                                                   189.9
Direct costs relating to the acquisition                                                      3.3
Total purchase consideration                                                                193.2
Fair value of net identifiable assets acquired                                               92.6
Goodwill                                                                                    100.6



The goodwill is attributable to the profitability of the acquired business and
anticipated synergies with Recall's existing operations. The fair values of
assets and liabilities acquired, including intangibles such as customer lists,
were established using professional valuers, where relevant. The fair values
amounts shown below differ from those reported at the half-year, which were only
provisionally determined.



                                    30 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 6.  Business combination - continued
                                                                                  Acquiree's
                                                                             carrying amount                 Fair value
On acquisition of AUSDOC, assets acquired and liabilities assumed were:                 US$m                       US$m

Cash and cash equivalents                                                                2.0                        2.0
Trade and other receivables                                                              5.7                        5.7
Inventories                                                                              0.2                        0.2
Other current assets                                                                     1.1                        1.4
Property, plant and equipment                                                           29.7                       34.8
Intangible assets                                                                       65.3                       57.3
Current and deferred tax assets                                                          1.6                        1.6
                                                                                       105.6                      103.0
Trade and other payables                                                               (5.4)                      (5.4)
Provisions                                                                             (2.8)                      (3.4)
Current and deferred tax liabilities                                                   (1.6)                      (1.6)
                                                                                       (9.8)                     (10.4)

Net assets                                                                              95.8                       92.6

                                                                                                                  2006
Cash outflow on acquisition of AUSDOC was as follows:                                                             US$m

Cash and cash equivalents acquired                                                                                  2.0
Cash consideration                                                                                              (193.2)
Net cash outflow                                                                                                (191.2)



In addition to the AUSDOC acquisition, there were a number of other
acquisitions, the impacts of which are immaterial in aggregate.



                                    31 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 7.  Income tax
                                                                                                2006             2005
                                                                                                US$m             US$m
Amounts recognised in the income statement
Current income tax - continuing operations:
UK tax charge
- Corporation tax                                                                               36.9             42.3
- Prior year adjustments                                                                         0.3              1.0
Other jurisdictions' tax charge
- Corporation tax                                                                              146.4            111.1
- Prior year adjustments                                                                         2.1              6.7
                                                                                               185.7            161.1
Deferred tax - continuing operations:
- Origination and reversal of temporary differences                                             44.0             12.8
- Previously unrecognised tax losses                                                           (11.0)            (2.2)
- Prior year adjustments                                                                         8.0             (8.9)
                                                                                                41.0              1.7

Tax expense - continuing operations                                                            226.7            162.8

Tax expense - discontinued operations                                                          225.8             80.3
Total income tax expense recognised in the income statement                                    452.5            243.1

Amounts recognised in the statement of recognised income and expense
- Actuarial gain/(losses) on defined benefit pension schemes                                     8.6             (1.8)
- Gains on revaluation of cash flow hedges                                                       1.5                -
Tax expense recognised directly in equity                                                       10.1             (1.8)

Profit before tax - continuing operations                                                      589.3            475.9

Tax at 30% (2005: 30%) 1                                                                       176.8            142.8
Effect of tax rates in other jurisdictions                                                      18.0             11.6
Prior year adjustments                                                                          10.4             (1.1)
Items not subject to taxation                                                                   (4.6)            (2.5)
Prior year tax losses written-off                                                                0.9                -
Current year tax losses not recognised                                                           5.0              2.8
Prior year tax losses recouped                                                                 (10.7)            (2.2)
Other                                                                                           30.9             11.4
Tax expense - continuing operations                                                            226.7            162.8
Tax expense - discontinued operations                                                          225.8             80.3
Total income tax expense                                                                       452.5            243.1

1 The statutory tax rate was 30% for Australia and the UK.



                                    32 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 8.  Earnings per share
                                                                             2006                                 2005
                                                                         US cents                             US cents
Earnings per share
- basic                                                                      86.7                                 26.4
- diluted                                                                    85.2                                 26.2
From continuing operations
- basic                                                                      21.5                                 18.5
- diluted                                                                    21.1                                 18.4
From discontinued operations
- basic                                                                      65.2                                  7.9
- diluted                                                                    64.1                                  7.8

Weighted average number of shares used as the denominator:                   2006                                 2005
                                                                          million                              million
Weighted average number of ordinary shares outstanding during
 the year used in the calculation of basic earnings per share             1,688.8                              1,691.8
Adjustment for share options and performance share rights                    27.9                                 13.4
Weighted average number of ordinary shares outstanding during
the year used in the calculation of diluted earnings per share            1,716.7                              1,705.2

Options granted under the employee option plans are considered to be potential ordinary shares and have been included
in the determination of diluted earnings per share to the extent to which they are dilutive.



                                    33 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 9.  Dividends
a) Dividends paid during the year                              Interim         Final          Interim            Final
                                                                  2006          2005             2005             2004
Brambles Industries Limited
Dividend per share (in Australian cents)                          11.5          11.5             10.0             10.0
Franked amount at 30% tax (in Australian cents)                   11.5          11.5             10.0             10.0
Cost (in US$ million)                                             83.9          87.1             74.7             66.7
Payment date                                                  13/04/06      13/10/05         14/04/05         14/10/04

                                                                              Second
                                                               Interim       interim          Interim          Interim
                                                                  2006          2005             2005             2004
Brambles Industries plc
Dividend per share (in pence)                                    4.887         4.815            4.156            3.918
Cost (in US$ million)                                             61.2          64.5             58.0             49.5
Payment date                                                  13/04/06      13/10/05         14/04/05         14/10/04

b) Dividends declared after reporting date
                                                                              Special            Final
                                                                             dividend             2006            Total
Brambles Industries Limited
Dividend per share (in Australian cents)                                        34.5             13.5             48.0
Franked amount at 30% tax (in Australian cents)                                 34.5             13.5             48.0
Cost (in US$ million)                                                          245.2             96.0            341.2
Payment date                                                                                                  12/10/06
Last date for receipt of election notices under BIL's                                                         22/09/06
     Overseas Shareholders Dividend Plan

                                                                                                Second
                                                                              Special          interim
Brambles Industries plc                                                      dividend             2006            Total
Dividend per share (in pence)                                                 13.918            5.446            19.364
Cost (in US$ million)                                                          171.0             66.9             237.9
Payment date                                                                                                  12/10/06
Dividend record date                                                                                          22/09/06

The special dividend declared on 23 August 2006 includes 13.5 Australian cents (5.446 pence) in lieu of the 2007
interim dividend that would normally be paid in April 2007 and 21.0 Australian cents (8.472 pence) in recognition of
the success of the divestment programme.

As these dividends had not been declared at the reporting date, they are not reflected in the financial statements.



                                    34 of 40





Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 10. Issued and quoted securities
                                                              Options                  Ordinary securities
Brambles Industries Limited                                    Number                                Number        A$m
At 1 July 2005                                            54,836,814                           969,040,322    1,212.4
Issued during the year                                     4,104,985                             8,916,924       65.1
Exercised during the year                                 (8,916,924)                                   -          -
Lapsed during the year                                    (6,444,635)                                   -          -
Shares purchased on-market and cancelled                          -                            (20,679,697)    (222.0)
At 30 June 2006                                           43,580,240                           957,277,549    1,055.5

Brambles Industries plc                                                                              Number         £m
At 1 July 2005                                            16,949,603                           724,125,805       87.3
Issued during the year                                     1,699,481                             2,790,341        9.3
Exercised during the year                                 (2,790,311)                                   -          -
Lapsed during the year                                    (2,395,263)                                   -          -
Shares purchased on-market and cancelled                          -                            (59,562,443)      (3.0)
At 30 June 2006                                           13,463,510                           667,353,703       93.6

Brambles                                                                                             Number       US$m
At 1 July 2005                                            71,786,417                         1,693,166,127    1,080.0
Issued during the year                                     5,804,466                            11,707,265       64.0
Exercised during the year                                (11,707,265)                                   -          -
Lapsed during the year                                    (8,839,898)                                   -          -
Shares purchased on-market and cancelled                          -                            (80,242,140)    (170.4)
Foreign exchange differences                                      -                                     -       (16.4)
At 30 June 2006                                           57,043,750                         1,624,631,252      957.2



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 11. Changes in equity                                                                              2006      2005
5, 50, 33, 0, 5, 26, 33, 0 5, 51, 33, 0, 8, 0, 33, 0 5, 51, 33, 0, 8, 0, 33, 0 5, 51, 33, 0, 8, 0,      US$m      US$m
33, 0



Total equity at 1 July                                                                               2,387.3   2,110.4

Total recognised income and expense for the year                                                     1,427.2     506.9

Adjustment on initial adoption of IAS 32 / AASB 132
and IAS 39 / AASB 139                                                                                   (0.2)       -

Long term incentive plan:
- Performance shares to be issued                                                                       26.6      16.3
- Shares issued                                                                                        (12.4)     (2.1)
- Income tax                                                                                             8.1       1.7

Transactions with equity holders in their capacity as equity holders:
- Dividends paid                                                                                      (296.9)   (256.1)
- Issues of ordinary shares, net of transaction costs                                                   48.2       8.9
- Premium on issue of ordinary shares                                                                   15.4       1.9
- Shares purchased on-market and cancelled                                                            (645.2)       -

Minority interest:
- Dividends paid                                                                                        (0.6)     (0.7)
- Other                                                                                                  0.1       0.1
- On disposal of subsidiaries                                                                           (4.6)       -

Total equity at 30 June                                                                              2,953.0   2,387.3



                                    35 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 12. Cash flow statement - additional information
a) Reconciliation of cash
For the purpose of the cash flow statement, cash comprises:                          2006             2005
                                                                                     US$m             US$m

Cash at bank and in hand                                                            113.4            176.7
Short term deposits                                                                  16.0             11.4


Bank overdrafts                                                                        -              (0.1)
                                                                                    129.4            188.0


b) Borrowing facilities and credit standby arrangements
Total facilities:
- Committed borrowing facilities                                             3,198.6                          3,613.3
- Loan notes                                                                   425.0                            425.0
- Credit standby/uncommitted arrangements                                       65.1                             44.8
                                                                             3,688.7                          4,083.1
Facilities used at reporting date:
- Committed borrowing facilities                                             1,351.3                          1,958.8
- Loan notes                                                                   425.0                            425.0
- Credit standby/uncommitted arrangements                                       21.2                             12.6
                                                                             1,797.5                          2,396.4
Facilities unused at reporting date:
- Committed borrowing facilities                                             1,847.3                          1,654.5
- Credit standby/uncommitted arrangements                                       43.9                             32.2
                                                                             1,891.2                          1,686.7

                                                                                2006                             2005
Total credit facilities by currency:                                        millions                         millions
- US dollar                                             US$                  1,595.4                          1,895.5
- Sterling                                                £                    783.9                            664.4
- Euro                                                    €                    431.6                            754.7
- Other                                                 US$                     88.1                             79.9

c) Non-cash financing or investing activities
Apart from that disclosed in Note 16, there were no financing or investing transactions during the year which have had
a material effect on the assets and liabilities of Brambles that did not involve cash flows.



                                    36 of 40





Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 12. Cash flow statement - additional information - continued

d) Reconciliation of profit after tax to net cash flows from operating activities              2006               2005
                                                                                               US$m               US$m

Profit after tax                                                                            1,464.4              448.8

Adjustments for:
- Depreciation and amortisation                                                               492.7              605.4
- Irrecoverable pooling equipment provision expense                                            93.7              114.7
- Loss on remeasurement to fair value less costs to sell                                       25.0                 -
- Net profit on disposal of property, plant and equipment                                     (35.3)             (36.3)
- Net profit on disposal of businesses and investments                                         (5.0)              (2.4)
- Net profit after tax on completed disposals of discontinued operations                     (940.3)                -
- Costs incurred on disposal activity yet to close                                             11.2                 -
- Joint ventures and associates                                                                 1.8               (3.3)
- Equity-settled share-based payments                                                          26.2                8.4
- Finance costs                                                                                (7.6)              17.4
Movements in operating assets and liabilities, net of acquisitions and disposals:
- Increase in trade and other receivables                                                      (5.1)             (38.8)
- Decrease in prepayments                                                                       1.6                 -
- Decrease/(increase) in inventories                                                            1.9               (9.8)
- Decrease in deferred tax                                                                     50.8               22.4
- Decrease/(increase) in trade and other payables                                             (50.0)              96.7
- Increase in tax payable                                                                      49.0               51.5
- Increase in provisions                                                                       12.1                7.6
- Other                                                                                         2.0                8.9
Net cash inflow from operating activities                                                   1,189.1            1,291.2



                                    37 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006



Note 13. Equity-accounted investments



a) Joint ventures

Brambles has investments in the following joint ventures, all of which are
unlisted jointly controlled entities, which are accounted for using the equity
method and have a 30 June balance date.


                                                                                            % interest held
                                                             Place of                      at reporting date
Name (and nature of business)                                incorporation                     2006               2005

CISCO - Total Information Management Pte. Limited            Singapore                           49%                49%
(Information management)
Enviroguard Pty Limited 1                                    Australia                           -                  50%
(Waste management)
Eurotainer SA 1                                              France                              -                  50%
(Tank container leasing)
General de Archivo Y Deposito, SA                            Spain                               49%                30%
(Document management services)
Hsiung Wei Company Limited 1                                 Taiwan                              50%                50%
(Waste management)
SA TCR International NV 1                                    Belgium                             -                  50%
(Airport handling equipment)

1     Reported within discontinued operations.


b) Associates
Cleanaway Germany, which was sold in 2006, had investments in associates, all operating in the waste management
business in Germany, none of which was individually material.
c) Share of results of joint ventures and associates                                             2006             2005
                                                                                                 US$m             US$m
Continuing operations
Profit from ordinary activities before tax                                                        4.4              3.4
Income tax on ordinary activities                                                                (0.8)            (0.7)
Profit for the year                                                                               3.6              2.7

Discontinued operations
Profit from ordinary activities before tax                                                       14.1             19.7
Income tax on ordinary activities                                                                (3.4)            (5.6)
Profit for the year                                                                              10.7             14.1

Profit for the year                                                                              14.3             16.8

Note 14. Net tangible assets backing                                                             2006             2005
                                                                                             US cents         US cents
Net tangible assets backing based on 1,624.6 million shares
(2005: 1,693.2 million shares)                                                                  131.7             77.2

Net tangible assets backing per share is calculated by dividing total equity attributable to the members of the parent
entities less goodwill and intangible assets by the number of shares on issue at year end.



                                    38 of 40



Brambles

Notes to the consolidated financial information - continued

for the year ended 30 June 2006


Note 15. Contingent liabilities
Brambles has given vendor warranties in relation to businesses sold in 2006 and is in the process of agreeing working
capital adjustments as required under the Interlake sale agreement. Brambles has recognised the financial impact of
such vendor warranties and adjustments on the basis of information currently available. A contingent liability exists
for any amounts which may ultimately be borne by Brambles which are in excess of the amounts provided at 30 June 2006.
Otherwise, there have been no material changes in Brambles' contingent liabilities as set out in the 2005 Annual Report
and 2005 Annual Review.



Note 16. Events after balance sheet date
On 5 July 2006, the US$1,341.6 million receivable in respect of business disposals included in the 30 June 2006 balance
sheet was settled in cash. Other than this, there have been no events that have occurred subsequent to 30 June 2006
that have had a material impact on Brambles' financial performance, position or cash flows.

                                    39 of 40

Brambles


STATEMENT OF COMPLIANCE

This report is based upon financial statements which have been audited.

The audit report, which is unqualified, will be made available with the Brambles 2006 Annual Report.



C A van der Laan de Vries
Company Secretary
23 August 2006



                                    40 of 40



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