The attached slides were used at the Analyst Presentation by John Hirst and Andrew Fisher on the 9th

1

• The attached slides were used at the Analyst
  Presentation by John Hirst and Andrew Fisher on
  the 9th September 2003.
• The slides could be incomplete without the oral
  commentary.

2
Cautionary Statement for Purposes of the "Safe
Harbor" Provisions of the United States Private
Securities Litigation Reform Act of 1995 The
U.S. Private Securities Litigation Reform Act of
1995 provides a "safe harbor" for forward-looking
statements. This press release contains certain
forward-looking statements relating to the
business of the Group and certain of its plans
and objectives, including, but not limited to,
future capital expenditures, future ordinary
expenditures and future actions to be taken by
the Group in connection with such capital and
ordinary expenditures, the introduction of new
information technology and e-commerce platforms,
the expected benefits and future actions to be
taken by the Group in respect of certain sales
and marketing initiatives, operating efficiencies
and economies of scale. By their nature
forward-looking statements involve risk and
uncertainty because they relate to events and
depend on circumstances that will occur in the
future. Actual expenditures made and actions
taken may differ materially from the Group's
expectations contained in the forward-looking
statements as a result of various factors, many
of which are beyond the control of the Group.
These factors include, but are not limited to,
the implementation of cost-saving initiatives to
offset current market conditions, the ability to
recruit and retain management personnel,
integration of new information systems, continued
use and acceptance of e-commerce programs and
systems and the impact on other distribution
systems, the ability to expand into new markets
and territories, the implementation of new sales
and marketing initiatives, changes in demand for
electronic, electrical, electromagnetic and
industrial products, rapid changes in
distribution of products and customer
expectations, the ability to introduce and
customers' acceptance of new services, products
and product lines, product availability, the
impact of competitive pricing, fluctuations in
foreign currencies, and changes in interest rates
and overall market conditions, particularly the
impact of changes in world-wide and national
economies.
3
Second quarter and half year results

• For the period ended 3rd August 2003

4
Agenda

• Andrew Fisher
• Half year financial results
• John Hirst
• Strategy and divisional review

5
Andrew Fisher

• Group Finance Director

6
Financial Summary26 weeks ended 3rd August 2003

• Sales 390.6m - up 3.1
• Operating profit 36.4m - operating margin 9.3
  (before goodwill amortisation and one off
  branding costs)
• No evidence of improvement in major markets
• Investment in working capital to support product
  range expansion
• Net debt at 228.9m - interest cover 4.9 times
• Unchanged interim dividend

7
Financial SummaryGroup
Continuing businesses at constant exchange
rates Gross margin is measured after net
costs of freight, packaging, discounts and
inventory adjustments Before goodwill
amortisation and one-off branding costs
8
Like for like sales per day growth
9
Americas SPD and year on year growth rates
MDD
m
2001/2
2002/3
2003/4
10
Europe Asia Pacific SPD and year on year growth
rates(excluding BuckHickman InOne)
MDD
k
2003/4
2001/2
2002/3
11
UK SPD and year on year growth rates(excluding
BuckHickman InOne)
MDD
k
2001/2
2002/3
2003/4
12
BuckHickman InOne SPD and year on year growth
rates
MDD
k
2001/2
2002/3
2003/4
13
Mainland Europe Asia Pacific SPD and year on
year growth rates
MDD
k
2001/2
2002/3
2003/4
14
E-commerce SPD - Restated prior year EDI
k
2001/2
2003/4
2002/3
2000/1
15
Financial SummaryGroup
Continuing businesses at constant exchange
rates Gross margin is measured after net
costs of freight, packaging, discounts and
inventory adjustments Before goodwill
amortisation and one-off branding costs
16
Gross margin progression
MDD (excl BHIO)
BHIO
2000/1
2001/2
2002/3
2003/4
Note Gross margin is measured after cost of
freight, packaging, discounts and inventory
adjustments
17
Financial SummaryFirst half incremental SGA
costs
18
Financial SummaryIndustrial Products Division
Continuing businesses at constant exchange rates
19
Profit and loss accountSecond quarter and first
half to 3rd August 2003
20
Taxation
21
Summarised cash flowsSecond quarter and first
half to 3rd August 2003

• m 2003/4
• Q2 Q1 H1
• Operating profit 16.4 16.3
  32.7
• Depreciation (net of gains on disposals) 4.7
  4.4 9.1
• Amortisation of goodwill 0.6 0.7 1.3
• Net pension credit (1.4) (1.4) (2.8)
• Working capital (8.9) (5.7)
  (14.6)
• Operating cash flow 11.4 14.3
  25.7
• Net capital expenditure
  (4.4) (3.5) (7.9)
• Interest preference dividend
  (9.9) (0.4) (10.3)
• Tax (2.6) (4.2) (6.8)
• Free cash flow (5.5) 6.2 0.7

22
Debtor days

Days
2001/2
2002/3
2003/4
23
Inventory
Newark InOne new product
Liege warehouse
m
2001/2
2002/3
2003/4
At 2003/4 Q2 end exchange rates
24
Capital expenditure

• m 2003/4
• Front office systems 3.0
• IT 2.2
• Liege warehouse 1.4
• Other 2.7
• Total 9.3
• Sale of fixed assets (1.4)
• Net capital expenditure 7.9

25
Movement in net debt

• m First half
• Opening net debt (209.2)
• Free cash flow 0.7
• Ordinary dividends (18.1)
• (17.4)
• Disposal of business 0.8
• Capital retirement (2.3)
• Translation (0.8)
• Closing net debt (228.9)
• US Senior Notes due 2006, 2010 2013 (236.1)
• Other loans (25.4)
• Cash and short term deposits
  32.6 (228.9)

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Debt profile
- - - - - - Amount drawn at 3 August 2003
27
John Hirst

• Group CEO

28
What weve done - Talent, Technology and Service

• Talent
• Laurence Bain appointed to Board, Stephen Canham
  - MD, Europe Asia Pacific
• Enhanced leadership quality
• Technology
• Product and customer data bases
• Publication management system
• Siebel CRM systems in UK/US - others to follow
• eCommerce - eProcurement flexibility
• Information for customers and suppliers

29
Service and Services

• Logistics simplification in Americas and Europe
• Focus on product ranges and service levels
• Development of new services
• VMI/Stockroom solutions
• Product Find - NIC sourcing
• Product Watch - obsolescence
• eProcurement
• and all during possibly the longest down turn in
  the history of
• electronics industry

30
Further Actions

• Portfolio rationalisation Maintenance
  Inc.
• Acquisition Merkelbach
• Entry to new markets Mexico, China, Austria,
  Italy, Spain
• Key account focus Vauxhall, Rolls-Royce,
  Lockhead,
• successes Motorola, etc.
• Market segmentation HS, Government, Education,
  Design Engineers
• Rebranding InOne

31
Market trends - as differentiation increases
Differentiation
Customer experience
Service
Product
Commodity
Profits
32
Our AimThrough the quality of the customer
experience build closer relationships

• Core proposition
• Broad range of products
• Always in stock
• Swift and reliable delivery
• Value added services
• eCommerce (web and eProcurement)
• Vendor managed inventory
• Product Watch - obsolescence
• Product Find - sourcing
• and many more
• To WIN the hearts and minds of the engineers AND
  the
• corporation

33
Our AimThrough the combination of Premier
Farnell and customers technology

• Enable customers to
• Drive down their total procurement costs
• Increase their productivity and efficiency
• Spend more of their time on core tasks
• Thus delivering
• Economic benefit
• Peace of mind
• Appropriate for all customers - large and small

34
Progress - First half

• IPD
• Akron
• European and Australia successes
• OEM market strong in first half
• New product development continues
• TPC
• Sales per day 3.4 in difficult market
• New products and Mexican sales progress
• KENT
• Progress in most countries
• New products success

35
Progress - First half

• MDD
• Newark InOne Direct Ship in Europe and Asia and
  Farnell InOne in Americas
• Re-branding plans smoothly implemented
• CRM software - tangible benefit
• 7 globally managed accounts
• Punch out for Motorola - China

36
Progress - First half

• MDD - Americas
• Sales volatile in difficult market (SPD -3.4)
  (Jan-June NEDA semis -6 overall -4)
• US Government sales 17
• 254 Stockrooms Managed
• 130 eProcurement partnerships
• McCain, Proctor Gamble, Daimler Chrysler 48
  potential
• 42K new products - semis, passives and
  electromechanical
• Siebel implemented
• training proceeding
• campaigns underway

37
Progress - First half

• MDD - Americas
• Mexico and Brazil sales progress
• MCM sales growth in Q2

38
Progress - First half

• MDD - Europe Asia Pacific
• Market remains difficult - SPD 8.4
• UK SPD 10.8, BHIO 23.1
• Mainland Europe - SPD 2.3
• increases in Germany and Netherlands
• Asia - SPD 15.1, Australasia - SPD 2.9
• Major account sales up in many countries
• UK 112 ? Holland 8
• France 19 ? Australia
  6
• HS segment sales 42

39
Progress - First half

• MDD - Europe Asia Pacific
• Siebel - benefits now accruing to Farnell InOne
  UK business
• Website - SPD 75
• 168 UK Stockrooms managed
• eProcurement partnerships 121 (59 potential)
• Pirelli, TNO, Disneyland
• Liege on schedule for full operation in September

40
Outlook

• No evidence yet of improvement in North America
• European markets still weak
• Focus on customer experience
• service
• value added services
• product range
• Control of costs
• Ready for 2004

41
Summary

• Extensive capabilities in place
• Use of CRM to develop sales
• Major accounts developing using services
• 252 eProcurement partnerships achieved
• 100 in discussion
• Stockrooms managed
• Americas 254
• Europe Asia Pacific 168
• Segment progress
• Absorbed 5 million of fixed cost
• Poised for market improvement