John AllanChief Executive, Exel plc

Highlights

Strong operating performance despite tough market

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

- Earnings per share up 14%2

- Free cash flow of £193m

Annualised new contract gains exceed £700m

Strong second half performance

Invested over £110m3 in acquisitions in 2003

1: at constant exchange rates

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

3: excludes acquired debt of £24.4m

Review of 2003

Good progress gaining new business and reducing contract losses

Record contract gains in 2003

Lower percentage of contract losses

Good mix between contract logistics

and freight management

0

100

200

300

400

500

600

700

800

2001 2002 2003

H1 H2

£m

2003

700

Net annualised gains 450

(250)

Contract Logistics

FreightMgt

% turnover 9%

210

240

8%

11%

£m

Annualised gains

Annualised losses

2002

625

350

(275)

8%

185

165

8%

7%

2003 2002

Review of 2003

Americas - Freight Management 804 2.6

Asia Pacific - Contract Logistics 105 3.1

Operating performance by segment

Year to 31 December

at constant exchange rates

Review of 2003

Americas - Contract Logistics 827 44.5 32%

Asia Pacific - Freight Management 645 34.4 25%

UK & Ireland - Contract Logistics 1,377 35.1 25%

Cont. Europe - Freight Management 568 11.3 8%

UK & Ireland - Freight Management 220 2.9 2%

Op Profit

£m

Turnover

£m

1: % of logistics operating profit

2%

Cont. Europe - Contract Logistics 412 6.3 4%

2%

Margin

trend

H1 H2% Profits1

Cash flow analysisYear to 31 December 2003

0

50

100

150

200

250

300

254.0m

WorkingCapital

3.4m

Pensions

42.1m

Sirva

26.0m

NetCapex

76.4m

Tax, Int.and other

49.3m

Dividend

68.4m

M&A

110.5m

Operatingprofit and

depreciation£m

Net cash inflow£14.1m

Free cash flow£193.0m

Review of 2003

Spread and Balance of ActivitiesTotal logistics by geography and sector

* includes Africa & Middle East

Geographic Balance Sector Focus

Other

4%Consumer

26%

Retail

19%Healthcare

5%

Technology

22%

Chemical

5%Automotive

12%

United Kingdom& Ireland

32%

Asia Pacific

15%

Americas

33%Continental

Europe*

20%

Industrial

7%

Based on 2003 full year information

Review of 2003

Strategy for growth: building on strong foundations

globalcoverage

integratedcapability

customerfocus

skilledpeople

consistentprocesses

localstrength

breadth ofsolutions

supply chainexpertise

operationalexcellence

Mission

To be the preferred supply

chain partner to our

customers

To create new value in

the supply chain for our

customers, employees

and shareholders through

consistently superior

delivery of innovative

business solutions

Strategy review

Strategic focus

Balanced growth across key sectors and regions

Priorities

Regions

Major Asian economies including China

Central and Eastern Europe

Sectors

Non-food retail, particularly in the US

Services

Seafreight including consolidation services

Strategy review

Airfreight - European #2

#1 Ireland

#1 Hungary

#1 The Netherlands

#1 Sweden

#2 UK

#3 Italy

#5 Denmark

#5 Germany

Strategy review

Outsourcing trends suggest strong market growthover the medium term

Strategy review

Exel continues to improve the standard of service

Strategy review

Exel continues to be recognised as the industry leader on all important measures

Strategy review

Exel’s focus on integrated capability is closely aligned with real customer needs

Strategy review

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

Americas 150+ new contract

logistics gains Particularly good

performances in automotive, chemical, consumer, industrial, retail

Europe 100+ new contract

logistics gains Particularly good

performances in retail and consumer

Asia Pacific 45+ new contract

logistics gains Breakthroughs in

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

Strategy review

Acquisitions strategy

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

Focus has been on developing sector capabilities and strengthening geographic presence

Company Sector Main operations in

Power Logistics Consumer and Retail US and UK

Eagle Freight Freight Management Southern Africa

Transbeynak Healthcare Turkey

Unidock's Healthcare Brazil

Cappelletti Consumer Italy

Pharma Logistics Healthcare Belgium, Italy

Fujitsu Logistics1 Technology Japan

1 Agreed in principle and not included in the above figures

Strategy review

Investing in Healthcare

Unidocks

Total Logistics Company

Invested £44m over three years; £28m on acquisitions, £16m in capex

Transbeynak

Traditional strengths in the US, Europe and Singapore

Strategy review

Relationships with leading multi-national pharmaceutical customers

Integrated logistics services covering inbound, storage, labeling, pick/pack, outbound to final customer

Warehouses in São Paulo and Rio de Janeiro

Growth of 14% per annum

Market share of over 30% in Brazil

Key facts

Strategy review

Belgium

Key location in Huizingen

Comprises 16,500 m2 warehouse space

Including 550m2 chilled storage

Additional 7,000m2 warehouse space in Turnhout

Typically 300,000 orders per annum

Italy

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

Comprises 60,000m2 of warehouse space

includes 2,000m2 of chilled storage

Typically 800,000 orders per annum

Strategy review

Growth

Sustain strong organic revenue growth

Identify and execute strategically sound, sensibly priced acquisitions

Customer Relationships

Leverage and deepen relationships with key customers globally

Underperformers

Continue to fix underperforming business units inc. US freight mgt

Technology

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

Talent

Attract, retain and develop management talent throughout Exel

2004 management priorities

Strategy review