Guinness Peat Group plc

6 GUINNESS PEAT GROUP PLC • ANNUAL REPORTChairman’s StatementcontinuedCapital and DividendThe Board has declared the standard1p dividend and a 1 for 10 bonus issue(the 12th in succession, multiplying anoriginal 1990 holding 3.14 times).The share election scheme is availableand will operate, in lieu of a cashdividend, at the rate of 1 new share foreach 80 already held.Shareholders’ Funds(2000 to 2004: Adding Convertible Loan Notes(CLNs))1998 £167.1m19992000£283.9m£291.5mDirectorsTrevor Beyer has retired as a Director andwe thank him for his many years ofvaluable service.No replacement has been made at thisstage with the Chairman and Blake Nixonassuming additional responsibilities inthe UK.2001200220032004£332.9m£379.8m£441.8m £441.9m£520.4mOverall, the Directors operate as acohesive unit with regular Boardmeetings in London.OutlookThe Directors anticipate an exciting andsuccessful year for GPG in 2005.The published figure for 2001 has been adjusted for achange in accounting policy in 2002, but earlier yearshave not been re-stated.The figures for CLNs are £19.3m (2000),£15.5m (2001),£11.6m (2002),£12.0m (2003) and £6.0m (2004).Ron BrierleyCHAIRMANLondon, 28 February 2005