Media Release

9 September 2002

Toll growth delivers results

Toll Holdings is well positioned to continue along its strong growth path, announcing another record profit after tax of $74.2 million for the year to 30 June 2002, up 51% on the previous year.

"On all key measures the company's performance has been outstanding and the capacity is clearly there to pursue further strategic growth opportunities", Managing Director Paul Little said.

EBIT (excluding equity share of Pacific National results) improved by 45% to $102.1 million and EBIT margin grew 14% to 5.01% compared to the previous year. Revenues grew by 27% to $2.04 billion.

Mr Little noted that the results had been achieved during a period of tight economic and competitive conditions, during which the company completed a major acquisition and was integrating others.

"The results reflect strong organic growth and continuing cost efficiency, as well as the benefit of acquisitions," Mr Little said.

"We are particularly pleased with the progress of the Pacific National rail business and the expansion of our port operations in Australia and New Zealand."

Since its acquisition in February 2002, Toll's equity-accounted share of earnings after tax in Pacific National was $7.9 million, boosted by strong volumes, particularly in the Grain and Intermodal divisions.

Highlighting the company's capacity for further growth, Mr Little said that over $440 million had been invested in acquisitions and new capital expenditure during the year, providing major growth platforms.

Operating cashflows (pre interest and tax) grew 26% over the year. Subsequent to the funding of the Pacific National acquisition net corporate debt fell sharply to $214 million at the end of June.

Including subordinated convertible notes of $115 million as equity, gearing was 41% at the end of the year, enabling the company to aggressively pursue further growth opportunities.

Fully diluted earnings per share grew 35% for the year to $1.06 per share and Toll announced a record final dividend of 22 cents per share fully franked, an increase of 22% over the previous year.

The company also announced the retirement of Chairman Mr Peter Rowsthorn after 15 years in the position. Deputy Chairman Mr John Moule has been appointed Chairman.

"Mr Rowsthorn has made an outstanding contribution to the development of the company and we wish him well in retirement," Mr Little said.

The 2003 year has begun strongly, with results in line with budget and with the company well positioned to continue to generate solid cashflow and earnings growth.

For further information contact:

Paul Little	Neil Chatfield
Managing Director	Chief Financial Officer
Toll Group	Toll Group
Ph: 03 9694 2820	Ph: 03 9694 2820
Mobile: 0418 335 053	Mobile: 0419 566 847

Click here to view Results Presentation