PACIFICA GROUP LIMITED

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• PACIFICA GROUP LIMITED
• FINANCIAL RESULTS FOR THE
• HALF YEAR ENDED 30 JUNE 2000

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OPERATING FINANCIAL SUMMARY FOR THE HALF YEAR
ENDED 30 JUNE 2000

• 
  millions
  change
• 
  2000 1999
• 1st Half 1st Half
• SALES 517.8 437.3 18
• EBIT before INTANGIBLES 43.3 39.9
• EBIT after INTANGIBLES 39.8 36.6 9
• NET INTEREST (11.1) (11.3)
• PROFIT before TAX 28.7 25.3 13
• TAX EXPENSE (7.7) (8.8)
• OUTSIDE EQUITY INTERESTS (4.2) (1.6)
• PROFIT AFTER TAX pre ABNORMALS 16.8 14.9 12

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HALF YEAR 2000 ABNORMAL ITEMS

• Pre-Tax After Tax
• mill mill
• Australian Government Investment
• Incentive 5.4 3.8
• - 1999 entitlement
• Rationalisation of Lionweld Kennedy
  (France) (2.3) (2.3)
• Net Abnormal Profit 3.1 1.5

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HALF YEAR 2000

• 2000 1999
• 1st Half 1st Half
• EARNINGS per SHARE cents 11.5 10.5 9.5
• (before Abnormals)
• INTERIM DIVIDEND per SHARE cents 8.5 7.0
• FRANKING 60 75
• BOOKS CLOSE 22 SEPTEMBER 2000
• DIVIDEND PAID 6 OCTOBER 2000
• Dividend Reinvestment Plan discount reduced from
• 2.5 to zero effective this dividend

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HALF YEAR 2000HISTORICAL TRACK RECORD
PROFIT AFTER TAX millions
EARNINGS PER SHARE cents
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HALF YEAR 2000ASIAN BUSINESSES
Strong Asian Recovery - All Divisions
contributed to ongoing recovery
1st Half 1996 1997 1998 1999 2000 Sales 33.7 37.
5 24.9 36.9 51.0 millions EBIT 3.9 4.7 0.9 0.8
5.7 millions EBIT/Sales 11.6 12.5 3.6 2.1
11.1
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HALF YEAR 2000OPERATING CASH FLOW

• 2000 1999
• millions 1st Half 1st Half Change
• EBIT before equity profits 34.3 32.4
• Depreciation/Amortisation 32.9 27.3
• Cash EBIT 67.2 59.7 7.5 mill
• Bendix Dividends 9.9 9.1
• Net Interest Payments (11.2) (11.6)
• Tax Paid (6.5) (3.1)
• PL Cash Flow 59.4 54.1 5.3 mill
• Change in Working Capital 10.8 (1.6)
• Abnormal Items (2.3) -
• OPERATING CASH FLOW 67.9 52.5 15.4 mill
  
• GCFPS 46.3c 37.0c 25
• Debt/Equity 61 64
  
• Net Debt 285 mill 277 mill
  
• Comparative 31/12/99

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HALF YEAR 2000CAPITAL EXPENDITURE
57 million spent as follows
Automotive
PBR Knoxville
PBR Columbia
Construction
Export/Offshore Business
Plastics
Domestic Business
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HALF YEAR 2000TAX RATE ANALYSIS
2000 1999 1st Half 1st Half BASE
CORPORATE RATE 34 36 PACIFICA NORMALISED
RATE 33.2 41.5 (Excl. Associate company
profits abnormals) Major Items Overseas tax
rate differentials - 3.3 - 2.0 Research
Development - 1.3 - 1.4 Investment/Development
allowances - 0.5 - 0.8 Goodwill 5.0
5.5 Non deductible depreciation 1.3
1.3 Sundry - 2.0 2.9 - 0.8 5.5
includes reduction due to tax payable by JV
partners (LLC structure)

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• John MacKenzie
• President
• PBR International

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HALF YEAR 2000PBR INTERNATIONAL
2000 1999 1st Half 1st
Half change Sales millions 360.2 280.0 29 EBIT
millions 35.8 28.9 24 EBIT/Sales 9.9 10.3
OVERVIEW

• The North American car / light truck market
  continued to drive sales for PBR Knoxville and
  exports from PBR Australia
• PBR Malaysia and Thailand sales and profitability
  were very strong
• PBR Australia margins were impacted by higher
  aluminium prices and currency impact on imports
• PBR Knoxville continued to meet demand, quality
  and delivery targets but was unable to improve
  productivity. Substantial inefficiencies were
  incurred due to a suppliers plant explosion
  causing huge disruptions to raw material flow
• Friction Materials contribution was strong

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HALF YEAR 2000PBR INTERNATIONAL
AUSTRALIA

• Car sales were slightly up on last year with
  General Motors, Toyota and MMAL export
  performance overcoming Fords shortfall and
  overall concerns on the GST introduction
• PBR Australia exports were up 20 on last year
  with USA and Thailand strong, offsetting a
  decline in Korea. Exports are now in excess of
  50 of total PBR Australia production
• Friction Materials continued their strong
  performance however Aftermarket hard parts sales
  were flat

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HALF YEAR 2000PBR INTERNATIONAL
ASIA

• An excellent result in Thailand with a strong
  export performance on the Ford Mazda light truck.
  Domestic sales are now also improving
• PBR Malaysia performance was very strong on an
  increase in domestic demand for Proton vehicles
• Korean sales were down with Daewoo continuing to
  lose market share domestically
• The first contract for Banksia through our
  licensees in Japan should be confirmed in the
  near future. While this initial volume will be
  small, prospects are very encouraging

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HALF YEAR 2000PBR INTERNATIONAL
USA - KNOXVILLE

• An explosion at PBR Knoxvilles major supplier -
  Intermet - stopped casting supply in February.
  Tooling had to be remade and supply moved to
  other plants. This necessitated a 7 day
  operation for the entire first half with
  continued interruptions and was a major cause of
  frustration and inefficiency
• Volumes continued to increase as GM introduced
  more models and GMs Mexican plant came on line
• As a result, the planned efficiency improvements
  were not able to be commenced until 4th July
  holiday period

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HALF YEAR 2000PBR INTERNATIONAL
USA - KNOXVILLE (Cont)

• Management struggled under this huge pressure and
  additional support and skills have now been
  installed in PBR Knoxville. Peter Slaski,
  Director of Manufacturing, PBR Australia is now
  heading up production with supervisory and
  technical support from Australia
• Additional capacity is now being installed and by
  October PBR Knoxville is planned to be producing
  on 5 days
• PBR Knoxville cost base was impacted by
  outsourcing casting capacity to Australia and
  continued rising aluminium costs for the half.
  PBR Columbia is now the casting supplier and the
  aluminium price has plateaued

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HALF YEAR 2000PBR INTERNATIONAL
USA - COLUMBIA

• PBR Columbia is now casting calipers for PBR
  Knoxville and will move quickly to a 3 shift
  casting operation to meet demand. Production of
  calipers is on target for December this year
• The initial program volumes have increased and
  annual sales are now expected to be USD90
  million in year 2004. Capital requirements are
  now forecast to be USD60 million to cover this
  increase in volume

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HALF YEAR 2000PBR INTERNATIONAL
R D

• The Auriga launch at the SAE Show in March was
  very encouraging. Prototype orders were received
  from Daimler Chrysler in the USA, and these are
  now being delivered
• Opportunities for Europe are also under review
• Developments of a heavy duty Banksia and an
  electronically operated Banksia are on track and
  interest in the USA and Europe is growing

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HALF YEAR 2000PBR INTERNATIONAL
ACIS - Automotive Competitiveness and Investment
Scheme

• New Australian Government support scheme that
  commences 2001
• Eligible component producers accrue entitlements
  commencing Jan 1 1999
• Grants are based on 3 year rolling averages based
  on two variables
• - eligible production capacity (capital
  expenditures) (25 rate)
• - eligible R D / Engineering
  expenditures (45 rate)
• Grants are in the form of duty credits
• - used internally
• - sold on market
• Scheme will operate for 5 years commencing 1
  January 2001
• Scheme is capped at AUD 2 billion for total
  automotive industry

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HALF YEAR 2000PBR INTERNATIONAL
ACIS - Automotive Competitiveness and Investment
Scheme (Cont) Uncertainties

• Government can implement modulation
• Eligibility of expenditures
• Market value of entitlements if sold
• Timing of expenditures

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HALF YEAR 2000PBR INTERNATIONAL
ACIS - Automotive Competitiveness and Investment
Scheme (Cont) Pacifica treatment

• We have taken up a conservative estimate (70)
• We have treated 1999 as low key abnormal
• We have taken H1 2000 above the line
• - entitlements carry commercial sensitivities
• - quantification must remain confidential
• Structure of calculation / modulation and
  progressive entitlements will make future trends
  uncertain

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• Construction Products Division

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HALF YEAR 2000CONSTRUCTION PRODUCTS DIVISION
2000 1999 1st Half 1st Half
change Sales Revenue
millions 83.8 92.0 - 9 EBIT
millions 0.5 4.0 - 88 EBIT/Sales
0.6 4.4

• OVERVIEW
• Subdued sales conditions in all markets
• - AUST / NZ down 14
• - UK down 11
• - Asia up 10

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HALF YEAR 2000CONSTRUCTION PRODUCTS DIVISION
2000 1999 1st Half 1st Half
change Sales Revenue
millions 83.8 92.0 - 9 EBIT
millions 0.5 4.0 - 88 EBIT/Sales
0.6 4.4

• OVERVIEW (cont.)
• Melwire restructuring is on plan
• LWK France losses totalled 1.3 million
• There is a greater need to work the network
  internationally

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HALF YEAR 2000CONSTRUCTION PRODUCTS DIVISION

• AUSTRALIA / NEW ZEALAND
• No major project work - particularly Qld WA
• Millmerran Power Station commenced June
• Our concentration is on expanding the product
  range through the existing network
• cast covers
• drainage products
• aluminium screens
• Melwire restructuring benefits commence in H2
• Clayton property sold 3.5 million
• all major equipment moved to Qld
• WA move takes place early September

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HALF YEAR 2000CONSTRUCTION PRODUCTS DIVISION

• ASIA
• Regional management structure is working
  effectively
• Continuous signs of market improvement
• All units increased sales
• Webforge Thailand and Wuxi (China) remain the
  only soft spots - moderate losses

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HALF YEAR 2000CONSTRUCTION PRODUCTS DIVISION

• EUROPE / MIDDLE EAST
• Strong UK currency is impacting Access export
  activity and domestic margins
• cost reduction opportunities exist
• Highways division performing satisfactorily on
  lower activity levels
• Contracting division major projects skewed to H2
• France operation totally unacceptable
• provision for restructuring booked as abnormal H1
• Middle East close to break-even - new factory
  fully commissioned
• market demand is confirmed
• Senior management changes taking place in UK

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Summary of Actions taken
Melwire - Closure of Clayton site H1 - Shift of
production to Qld WA - Replace fine gauze
production with imports
UK - Senior management changes - Restructure /
closure of France - Review of UK cost structure
SALES H1 2000
Asia - Maximise regional management

co-ordination
Total Division - Market more as an international
network
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• Viscount Plastics

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HALF YEAR 2000VISCOUNT PLASTICS
2000 1999 1st Half 1st Half
change Sales Revenue
millions 73.8 65.2 13 EBIT
millions 4.7 4.9 - 4 EBIT/Sales
6.3 7.5

• OVERVIEW
• Flat Australian sales have led to restructuring
  costs of 675,000 included in this result.
  EBIT/Sales would have been 7.2
• Increases in raw material costs have put pressure
  on margins in Asia and New Zealand particularly

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HALF YEAR 2000VISCOUNT PLASTICS
2000 1999 1st Half 1st Half
change Sales Revenue millions 73.8
65.2 13 EBIT millions 4.7
4.9 - 4 EBIT/Sales 6.3 7.5

• OVERVIEW (cont.)
• Materials Handling sales down including Megabin
  pipeline effect
• Asian sales up 60 driven by strong packaging
  demand,
• particularly in China

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HALF YEAR 2000VISCOUNT PLASTICS

• AUSTRALIA
• Sales revenue up 7 after raw material selling
  price increases but volume down 6
• Nulili acquisition performing well
• Packaging, Automotive and Industrial sales flat
  and no significant upside from Sydney Olympics
• Megabin sales solid but down 20 on 1999
  introductory year
• Slower than planned introduction of new products
• NEW ZEALAND
• Sales down 13 even after price increases
• Materials Handling product pools have reached
  capacity
• Continued growth in Packaging products

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HALF YEAR 2000VISCOUNT PLASTICS

• ASIA
• Sales up 60
• EBIT / Sales 10 despite some margin loss as
  large raw material cost increases not yet fully
  recovered
• All Asian sites now profitable
• Asia 27 of Divisions sales, EBIT and Fixed
  Assets
• We are expanding capacity in Malaysia and both
  China operations

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• PACIFICA GROUP LIMITED
• FINANCIAL RESULTS FOR THE
• HALF YEAR ENDED 30 JUNE 2000