Results for the financial year ending 1 February FY 14/15 (52 weeks) 88.0 (4.9) 83.1

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1 Premier Farnell plc 19 March 2015 Key Financials except for per share Results for the financial year ending 1 February 2015 FY 14/15 (52 weeks) FY 13/14 (52 weeks) Change Underlying Growth (a) Total revenue % 3.3% Adjusted operating profit (b) Adjusting items (b) Total operating profit 88.0 (4.9) (1.5) % -9.2% -0.1% -4.0% Adjusted profit before tax (b) % Total profit before taxation % Adjusted earnings per share (b) 13.8p 14.3p -3.5% Basic earnings per share 12.9p 14.0p -7.9% Free cash flow (c) % Ordinary dividend per share 10.4p 10.4p (a) (b) (c) Sales per day growth for continuing businesses and operating profit growth at constant exchange rates, unless otherwise stated. 2014/15 and 2013/14 adjusting items are outlined in the financial review. Free cash flow comprises total cash generated from operations, excluding cash flows related to adjusting items, less net capital expenditure, interest, preference dividends and tax payments. FINANCIAL PERFORMANCE Underlying sales growth of 3.3% year on year Adjusted operating profit of 88.0m flat at constant currency o Operating margin at 9.2% down 40bps o Gross profit up 1.4% at constant currency o SG&A as a % of sales down 40bps at constant currency Adjusted profit before tax of 74.0m down 3.0% Adjusted free cash flow at 3.7% of sales reflecting inventory investments Board recommends an unchanged full year dividend of 10.4p per share GLOBAL EFFICIENCY PROGRAMMES Proposed global organisational structure to deliver 10m- 12m annualised cost saving New web platform fully implemented globally to enable growth of the ecommerce channel CUSTOMER FOCUSED STRATEGY Progress to enhance proposition for three target customer segments: o Engineering customers: development kit sales up over 20% year on year o Manufacturing customers: investments completed to build small production proposition o Component manufacturers: over 90 projects for 20 semiconductor manufacturers completed Laurence Bain, Chief Executive Officer, commented: The past financial year has been a challenging period for Premier Farnell as we position ourselves for future profitable growth. The investments we have made to date will enable us to execute our strategic growth initiatives. By improving our growth trajectory, reducing costs and completing the transformation of element14, we believe that Premier Farnell is well positioned to deliver improved financial performance. We have made a satisfactory start to the year and our expectations for the current financial year remain unchanged. 1

2 For further information, contact: Laurence Bain, Chief Executive Officer Mark Whiteling, Chief Financial Officer Thomas Churchill, Investor Relations Premier Farnell plc +44 (0) Richard Mountain FTI Consulting +44 (0) Premier Farnell s announcements and presentations are published at together with business information and links to all other Group web sites. An interim management statement will be announced on 18 June 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 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 initiatives supporting the Group s strategy, the effect of legislation and regulatory enactments, recruitment and integration of new personnel, the implementation of cost saving initiatives, continued use and acceptance of e-commerce programs and systems, implementation of new IT 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 worldwide and national economies. The Group does not intend to update the forward-looking statements made herein. 2

3 Divisional Analysis Revenue MDD Division H2 14/15 H2 13/14 Underlying growth (a) FY 14/15 FY 13/14 Underlying growth (a) Europe % % APAC % % Europe & APAC % % Americas % % MDD Other % % Total MDD % % IPD Group % % % % Adjusted Operating Profit (Operating margin %) MDD Division H2 14/15 H2 13/14 Underlying growth (a) FY 14/15 FY 13/14 Underlying growth (a) Europe & APAC % % 12.3% 13.7% 13.1% 13.8% Americas % % 5.7% 5.6% 5.9% 5.7% MDD Other % % 10.1% 12.0% 10.0% 11.0% Total MDD % % 9.5% 10.4% 10.0% 10.3% IPD % % 18.4% 18.4% 18.6% 18.6% Head office (6.5) (6.2) (14.1) (13.1) Group % % 8.8% 9.7% 9.2% 9.6% Note: The revenues and operating profits in both the analysis above and the segment information in note 2 of this statement are, where appropriate, translated to sterling based on the prevailing exchange rates at the time of the underlying transactions. In order to provide a like for like comparison, the underlying growth stated above is on a constant currency basis, consistent with the way that performance is measured by the business. Current year adjusted operating profit excludes restructuring costs of 5.1m (MDD Europe and APAC 1.1m, MDD Americas 0.2m, Head office 3.8m), net gain on US property of 0.3m related to savings on expenses incurred in the prior year relocation of the MDD Americas Head Office (MDD Americas) and acquisition costs of 0.1m (MDD Americas). 3

4 PREMIER FARNELL OVERVIEW Premier Farnell plc is a global, high service technology company, predominantly engaged in the marketing and distribution of products and services in the time-critical and innovation-focused electronic components distribution sector. With over 4,500 employees, operating in 36 countries, the Group is comprised of three distinct business units that focus on specific market segments. The element14 and CPC & MCM businesses together comprise our Marketing and Distribution Division (MDD). Akron Brass is our Industrial Products Division (IPD). 2014/15 BUSINESS REVIEW Full year Group sales grew 3.3% year on year, reflecting the execution of our strategic growth initiatives and market conditions. The sales performance of each of our divisions is set out in the table below with growth rates excluding Raspberry Pi provided to aid understanding of the underlying growth rates. Sales growth (including Raspberry Pi) (excluding Raspberry Pi) Q4 H2 FY Q4 H2 FY element14 (MDD) Europe 4.6% 2.8% 1.9% 6.1% 3.8% 2.5% APAC 13.6% 13.6% 16.1% 13.5% 13.2% 15.2% Americas 0.8% 1.3% 1.1% 2.1% 3.0% 2.6% 3.8% 3.1% 2.8% 5.0% 4.3% 3.7% CPC & MCM (MDD) 9.0% 9.1% 7.9% 4.4% 5.0% 3.8% Akron Brass (IPD) -1.9% -3.8% 1.3% -1.9% -3.8% 1.3% Group 4.0% 3.3% 3.3% 4.4% 3.7% 3.5% Against a mixed economic backdrop, Europe delivered full year sales growth of 1.9% year on year. Excluding Raspberry Pi, Europe sales increased 2.5% year on year. Market conditions in the United Kingdom remain challenging, despite some encouraging manufacturing PMIs, with our business reporting a year on year sales decline of 3.4% in the second half. Continental Europe continued to perform more strongly, growing sales 5.6% year on year in the second half led by Germany, Italy, Spain, Scandinavia and Eastern Europe. Asia Pacific continues to provide the Group with long-term growth opportunities. We have continued to grow market share in the region, with full year sales up 16.1% over the prior year. Every market in the region delivered positive growth throughout the year with sales growth in the key emerging markets of China and India at 18.1% and 20.3%, respectively, whilst Australia delivered sales growth of 5.6% over the prior year. Americas element14 business delivered full year sales growth of 1.1% year on year as we began to implement plans to transform the region s performance and integrated AVID Technologies into the Group. Excluding Avid Technologies, Americas full year sales were flat year on year. We anticipate that the Americas will benefit from our proposed global organisational structure as this will enable us to better leverage our global resources to enhance the customer proposition and sales effectiveness. CPC and MCM delivered combined full year sales growth of 7.9% in 2014/15, despite a challenging market backdrop, benefitting from sales of the Raspberry Pi. This follows the transfer of Raspberry Pi business from element14 to CPC and MCM in the first half of the year, as well as the launch of the CPC catalogue at the end of the first quarter. Raspberry Pi full year sales declined 2.3% year on year as the demand for the earlier versions of the board moderated, reflecting a typical technology product lifecycle. Having invested in stock ahead of its release on 2 February 2015, we have seen good demand for the latest iteration of the Raspberry Pi from both CPC and MCM customers in the UK and North America as well as element14 customers in Continental Europe and Asia Pacific. Following a standout year in 2013/14, Akron Brass performed in line with our expectations with full year sales up 1.3% year on year. The comparators from last year s contract win with the Hindustan Petroleum Company Limited were especially strong in 4

5 the second half and Akron Brass sales declined 3.8% year on year in the period. The business is well positioned to continue its expansion into international markets and build on its market leading position in North America. 2014/15 STRATEGIC REVIEW Our 2014/15 performance in comparison to our targets reflects our journey to transform Premier Farnell, with investments made that will enable us to deliver improving future financial performance. As we execute our strategic priorities and continue our journey to build our strategic vision of becoming the global destination for electronics customers, we will create sustainable shareholder value by growing our business, delivering efficiencies, optimising profitability and delivering free cash flow. Objective Strategic priority KPI Growth Efficiency Profitability Cash Become the recognised technology experts for design services and manufacturing of development kits for global components manufacturers Build and leverage technical expertise to attract engineering customers at cutting edge of technology Grow our business with engineering and manufacturing customer base, especially in the emerging markets Evolve our operating model into a more efficient and effective global, function based structure Develop attractive ecommerce channels that enable automation of processes Optimise our business through effective management of gross margin and costs Optimise use of cash in the business and distribution of funds to shareholders through-the-cycle 6% sales growth 4% active customer growth 10% emerging markets growth >30% RONA 70% of MDD sales from ecommerce 10%-12% ROS% 6% FCF to sales Our actions through our 2014/15 financial year in relation to each of these strategic priorities are described below. Strategic objective 1: Growth Become the recognised technology experts for design services and manufacturing of development kits for global components manufacturers. 2014/15 was an important year in developing our design and manufacturing services to the global components manufacturers. Through the successful acquisition and integration of AVID Technologies, element14 is now able to offer expertise from over 200 engineers across a broad range of technologies. Component manufacturers have responded positively to our enhanced offering. Embest and AVID have completed a total of 90 projects for more than 20 semiconductor manufacturers this year and we have an encouraging pipeline of opportunity into the year ahead. Build and leverage technical expertise to attract engineering customers at the cutting edge of technology. Following last year s inventory investment to enhance our range of development kits, we have delivered sales growth of over 20% year on year in this strategically important product group. The element14 community, which provides engineers with an online hub to discuss new technologies, now has over 300,000 members globally and received over 7.4m unique visits this year. During the year, we launched phase one of our new online Design Center. Engineers are increasingly using software as the key point of differentiation in their products. We anticipate launching phase two of the Design Center in the first half which will incorporate a software store where customers can buy licences for embedded systems development tools from brands such as ARM, Timesys, Atollic as well as our exclusive online relationship with Altium s Circuit Studio and our own CadSoft EAGLE computer-aided design software. Grow our business with our engineering and manufacturing customer base, especially in the emerging markets. 5

6 Over the past two years, we have made incremental inventory investments totalling 35m principally to enhance our product range for both these customer segments, as part of establishing an overall production product proposition. In addition, we have been building the capability in our distribution centres to meet additional small volume production requirements with date and lot code traceability on over 300,000 products. Through the rollout of the new global web platform we have enhanced our primary go-to-market channel. We are now implementing further online enhancements for small volume production customers and upgrades to our mobile web experience. Group sales growth of 3.3% was short of our 6% through-the-cycle sales growth target but was ahead of the 2.6% sales growth achieved in the prior year. The active customer base exited the year 2.1% lower compared to the prior year. Significant effort is being applied to return this metric to growth, particularly as we focus on acquiring customers online having completed the rollout of the new web platform. Sales in emerging markets grew 13.1% year on year, above our strategic target of 10% sales growth. Strategic objective 2: Efficiency Focus on cost control and improving the efficiency of our operating model are constant priorities for our business. The effective management of our cost profile has enabled us to offset the majority of the gross margin decline, delivering SG&A as a percentage of sales at 27.6%, a reduction of 0.4 percentage points at constant exchange rates. We continue to measure our success in the optimisation of our global resources against a return on net operating assets (RONA) target of >30%. In 2014/15, the Group s RONA was slightly below this goal at 29.6%. Evolve our operating model into a more efficient and effective global structure. In June 2014, we reported that we had begun to move to an integrated, global organisational structure in our element14 marketing and distribution businesses. By moving to a function based structure, the business will better leverage its expertise and resources around the globe. As well as better enabling the execution of our strategy, the simplified global structure will deliver operating efficiencies and economies of scale. Following a rigorous process that involved over 70 functional experts from across the business, we have now completed the proposed design of the new global organisation. This rigorous design process enabled us to identify efficiency savings beyond those initially anticipated. We are now targeting total annual cost benefits of 10m to 12m, once the new structure is fully implemented with approximately 3m to 4m of benefit in 2015/16 and a further 7m to 8m of benefit in 2016/17. Develop attractive ecommerce channels that enable automation of processes. We took a significant step in the development of our ecommerce channels this year by completing the roll out of our upgraded global web platform. Having a single global web platform will allow the business to benefit from operating efficiencies and enable sales and marketing activity to be implemented quickly and consistently around the globe, as well as providing a better online experience for our customers. ecommerce penetration was 49.3%, down 5.8 percentage points from the prior year. This decline principally reflects the decommissioning of optical character recognition for the fully automated processing of faxes, which took place at the end of the prior year, as well as the evolving shape in our customer base as we extend our model towards the small volume production sales. While we have been investing in developing an online production proposition, we have been supporting these customers through traditional channels. Web enhancements targeted at small volume production are scheduled to go live over the coming months. This will support the Group s drive towards our objective of 70% sales via ecommerce. Strategic objective 3: Profitability Optimise our business through effective management of gross profit and costs. The Group targets an operating margin that optimises profitability through-the-cycle by seeking to maximise gross profit and managing costs both strategically, as we transform our business, and tactically in line with market conditions. Full year operating margin of 9.2% (adjusted) reflected a decline in gross margin, our planned strategic investments to enhance our customer proposition as we transform our business and ongoing focus on cost management. 6

7 A core objective of our strategy is that we will provide a customer proposition that delivers growth in sales and gross profits. We remain focused on managing gross margin in line with market conditions but we also anticipate that certain aspects of our strategy - namely the evolving customer and product mix - will result in further dilution to gross margin over time. In line with this objective, we have realigned our pricing to reflect the current competitive environment in an increasingly global marketplace and also continued to grow faster in strategically important products such as development kits and semiconductors, as well as in higher volume business and establishing our leadership in the embryonic single board computing space. Whilst this approach has led to a 0.7 percentage point decline in gross margin to 36.8%, we have delivered growth in gross profits, on a constant currency basis, up 1.4% year on year. Focus on cost control enabled us to offset the majority of the gross margin decline. Adjusted operating profit reduced by 0.1% at constant currency compared to the prior year. Strategic objective 4: Cash Optimise use of cash in the business and distribution of funds to shareholders through-the-cycle. We aim to optimise the use of cash in the business to take advantage of the strategic opportunities that arise and to enable distribution of funds to shareholders through-the-cycle. Adjusted free cash flow as a percentage of sales of 3.7% was below our through-the-cycle target of 6%, following further inventory investments to enrich our product offering for engineering and manufacturing customers. With our ability to manage working capital in response to market conditions and our commitment to maintaining the quality of earnings through this period of investment, the Board has recommended an unchanged final dividend of 6.0p per share, resulting in a full year dividend of 10.4p (2013/14: 10.4p). 2014/15 FINANCIAL COMMENTARY Adjusted operating profit for the full year was 88.0m (2013/14: 93.0m), representing a decline of 0.1% year on year at constant exchange rates. Operating margin of 9.2% (adjusted) reflected a decline in gross margin and the planned strategic investments to enhance our customer proposition completed this year, offset partly by continued focus on managing costs tightly. Adjusting items include 5.1m of restructuring costs related to our global business re-organisation, of which 2.8m were recognised in the second half. Total cost to achieve the business re-organisation is expected to be approximately 10m with the remainder recognised in 2015/16. Prior year adjusting items included restructuring costs of 3.9m, a net gain on US property disposal of 1.6m and a one-off 0.8m gain following re-measurement of the expected contingent consideration payable in respect of the Embest acquisition. Total operating profit was 83.1m for the full year, reflecting a net cost from adjusting items of 4.9m (2013/14: 91.5m, after reflecting a net cost from adjusting items of 1.5m), resulting in a year on year decline of 4.0% at constant exchange rates. Adjusted free cash flow as a percentage of sales of 3.7% for the full year reflected inventory investments, now completed, to enrich our product offering for engineering and manufacturing customers. Net cash outflow from investment in working capital was 15.1m, resulting in adjusted cash conversion at 97.5% (2013/14: 93.2%). During the year the Group purchased and cancelled 712,948 of its preference shares at a total cash cost of 11.5m. Based on the book value and fair value of the instrument at the date of purchase, the financial liability element of the preference shares was reduced by 11.5m and the equity element by 1.9m. Total consideration payable for the acquisition of AVID Technologies was 7.7m, with additional acquisition costs of 0.1m shown as an adjusting item. Of the total consideration, 0.3m relates to the fair value of net assets acquired and 7.4m relates to goodwill. Post-employment benefits liabilities increased to 70.7m from 45.1m at the end of the previous financial year due to actuarial re-measurements. The main driver of these re-measurements was the significant fall in discount rates at the end of 2014/15, as a result of weak corporate bond yields. The Group s total contribution to the scheme will reduce to 4.8m in the current financial year and is expected to be 4.4m in 2016/17. 7

8 Net financial liabilities (including preference shares) increased to 256.6m from 225.8m at the end of the prior financial year. The impact of exchange rates in the period was to increase net financial liabilities by 11.5m, principally in relation to our US$ denominated private placement notes. Net debt to adjusted EBITDA was 2.5x following the acquisition of AVID Technologies and reflecting the impact of foreign exchange movements in the year. At the year end, headroom on bank borrowings was 181.2m under facilities extended during the period to September This headroom, combined with our net cash position of 43.8m, continues to give us a secure funding position and will facilitate repayment of the preference shares on their maturity in In addition, the Group successfully refinanced $85m US Private Placement Notes due August 2016 until There were significant foreign exchange rate movements over the past 12 months. In 2014/15, the average exchange rates for sterling against the US dollar and the Euro were, respectively, 1 = US$1.64 (2013/14: 1 = US$1.57) and 1 = 1.26 (2013/14: 1 = 1.18). Prior year comparatives for revenues and adjusted operating profit benefited by 38.9m and 4.9m, respectively, as a result of the foreign exchange rates compared to 2014/15. We note the potential impact of recent volatile foreign exchange movements which, if current rates prevail in 2015/2016 ( = US$1.47; = 1.39), will have an adverse impact on the Group s reported profit of approximately 2.0m for the current financial year compared to the average rates in 2014/15. Net finance costs in 2014/15 were 14.0m (2013/14: 16.7m). This comprises net interest payable of 10.5m (2013/14: 12.4m), which was covered 8.4 times by adjusted operating profit, and a net charge of 3.5m (2013/14: 4.3m) in respect of the Company s convertible preference shares. The reduction in net finance costs reflects the repayment of the US$159m Private Placement notes in June 2013, combined with the retranslation of US$ interest charges on the Group s US$ Private Placement notes throughout the year, as well as the benefit of the repurchase and cancellation of 712,948 preference shares. Adjusted profit before tax for the full year was 74.0m (2013/14: 76.3m), a decline of 3.0% on the previous year. Total profit before tax for 2014/15 was 69.1m (2013/14: 74.8m), a decline of 7.6% on the previous year. The taxation charge represents an effective tax rate for the 2014/15 financial year on profit before tax and preference dividends of 30.0% (2013/14: 29.9%). After including adjusting items the effective rate is 29.9% (2013/14: 30.0%). We expect that the effective tax rate should reduce in 2015/16 by approximately 1% reflecting the continuing reduction in the UK tax rate. Adjusted basic earnings per share for the financial year are 13.8p (2013/14: 14.3p). Basic earnings per share after the net impact of adjusting items are 12.9p (2013/14: 14.0p). Adjusted basic earnings per share for the second half are 6.6p (2013/14: 7.2p). Basic earnings per share after the net impact of adjusting items are 6.1p (2013/14: 6.9p). The Board recommends that the final dividend is maintained at 6.0p per share (2013/14: 6.0p per share), making a total for the year of 10.4p per share (2012/13: 10.4p per share). The final dividend, subject to approval at the Annual General Meeting on 16 June 2015, is payable on 25 June 2015 to shareholders on the register at 29 May

9 Condensed Consolidated Income Statement For the second half and full year ended 1 February / / / /14 Second Second Full Full half half year year unaudited unaudited unaudited audited Notes Continuing operations Revenue Cost of sales (307.0) (294.6) (606.9) (605.1) Gross profit Net operating expenses - adjusted operating expenses (131.3) (129.7) (265.2) (269.9) - adjusting items 3 (2.5) (1.7) (4.9) (1.5) Total net operating expenses (133.8) (131.4) (270.1) (271.4) Operating profit - adjusted operating profit adjusting items 3 (2.5) (1.7) (4.9) (1.5) Total operating profit Finance income Finance costs - interest payable (6.0) (5.2) (11.2) (12.8) - preference dividends (1.5) (1.7) (2.9) (3.5) - premium on redemption of preference shares (0.2) (0.4) (0.6) (0.8) Total finance costs (7.7) (7.3) (14.7) (17.1) Total profit before taxation Taxation 4 (10.3) (11.3) (21.6) (23.4) Profit for the period attributable to owners of the parent Earnings per share Basic 5 6.1p 6.9p 12.9p 14.0p Diluted 6.1p 6.9p 12.8p 13.9p Ordinary dividends Interim - proposed 4.4p 4.4p Final - proposed 6.0p 6.0p Paid 10.4p 10.4p Impact on shareholders' funds () Condensed Consolidated Statement of Comprehensive Income For the second half and full year ended 1 February / / / /14 Second Second Full Full half half year year unaudited unaudited unaudited audited Profit for the period Items that will not be reclassified to profit or loss Remeasurements of post employment benefit obligations (24.6) (5.2) (26.7) (4.0) Deferred tax credit on remeasurements of post employment benefit obligations Total items that will not be reclassified to profit or loss (17.4) (3.9) (18.9) (3.3) Items that may be reclassified to profit or loss Net exchange adjustments 1.5 (7.8) 0.3 (5.9) Net fair value gains on cash flow hedges Total items that may be reclassified subsequently to profit or loss 2.4 (5.8) Total other comprehensive income for the period (15.0) (9.7) (18.4) (3.2) Total comprehensive income for the period attributable to owners of the parent The accompanying notes form an integral part of this unaudited condensed consolidated financial information.

10 Condensed Consolidated Balance Sheet As at 1 February February 2 February unaudited audited Notes ASSETS Non-current assets Goodwill Other intangible assets Investment held at fair value Property, plant and equipment Deferred tax assets Total non-current assets Current assets Inventories Derivative financial instruments Trade and other receivables Current tax receivable Cash and cash equivalents Total current assets LIABILITIES Current liabilities Financial liabilities 6 (6.3) (1.8) Derivative financial instruments 6 (0.2) - Trade and other payables (130.7) (118.4) Current tax payable (12.7) (12.4) Total current liabilities (149.9) (132.6) Net current assets Non-current liabilities Financial liabilities 6 (296.3) (268.8) Retirement and other post-employment benefits (70.7) (45.1) Deferred tax liabilities (0.3) (6.7) Total non-current liabilities (367.3) (320.6) NET ASSETS EQUITY Ordinary shares Equity element of preference shares Share premium Capital redemption reserve Hedging reserve Cumulative translation reserve Retained earnings (7.4) (0.4) TOTAL EQUITY Consolidated Statement of Changes in Equity For the year ended 1 February / /14 Full Full year year unaudited audited Total equity at beginning of period Profit for the period Other comprehensive expense (18.4) (3.2) Total comprehensive income Transactions with owners: Ordinary dividends paid (38.2) (38.1) Ordinary share capital subscribed Share-based payments Total transactions with owners (36.6) (35.7) Total equity at end of period The accompanying notes form an integral part of this unaudited condensed consolidated financial information.

11 Condensed Consolidated Statement of Cash Flows For the second half and full year ended 1 February / / / /14 Second Second Full Full half half year year unaudited unaudited unaudited audited Notes Cash flows from operating activities Operating profit Adjusting items: - net income statement impact cash impact (4.3) (2.2) (7.0) (6.2) Non cash impact of adjusting items (1.8) (0.5) (2.1) (4.7) Depreciation and amortisation Changes in working capital (0.7) (1.4) (15.1) (23.7) Additional funding for post retirement defined benefit plans (2.0) (0.9) (3.9) (2.6) Other non-cash movements (0.3) Total cash generated from operations Interest received Interest paid (5.3) (5.0) (10.3) (12.4) Dividends paid on preference shares (1.5) (1.7) (2.9) (3.5) Taxation paid (9.0) (8.7) (17.4) (17.5) Net cash generated from operating activities Cash flows from investing activities Net outflow from purchase of business - - (7.8) (2.2) Adjusting items: - cash impact of US property disposal (0.6) (0.1) (0.6) 3.9 Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment (2.4) (3.0) (6.2) (5.1) Purchase of intangible assets (8.2) (6.9) (14.5) (12.7) Net cash used in investing activities (11.2) (9.7) (29.1) (15.8) Cash flows from financing activities Issue of ordinary shares Purchase of preference shares - - (11.5) - Proceeds from bank loans Repayment of bank loans (35.1) (7.1) (35.1) (108.6) Dividends paid to ordinary shareholders (16.2) (16.1) (38.2) (38.1) Net cash used in financing activities (15.5) (22.9) (21.4) (118.6) Net increase/(decrease) in cash, cash equivalents and bank overdrafts (1.6) (87.0) Cash, cash equivalents and bank overdrafts at beginning of period Exchange gains/(losses) 3.3 (5.9) 2.6 (1.8) Cash, cash equivalents and bank overdrafts at end of period Reconciliation of net financial liabilities Net financial liabilities at beginning of period (240.8) (245.6) (225.8) (229.6) Net increase/ (decrease) in cash, cash equivalents and bank overdrafts (1.6) (87.0) (Increase)/ decrease in debt (0.7) 7.1 (28.2) 81.3 Purchase of preference shares Premium on redemption of preference shares (0.2) (0.4) (0.6) (0.8) Derivative financial instruments Amortisation of arrangement fees (0.4) (0.2) (0.6) (0.5) Exchange movement (16.4) 8.7 (11.5) 6.6 Net financial liabilities at end of period 6 (256.6) (225.8) (256.6) (225.8) The accompanying notes form an integral part of this unaudited condensed consolidated financial information.

12 Notes 1 Basis of preparation The unaudited condensed consolidated financial information in this report has been prepared based on International Financial Reporting Standards (IFRSs), as adopted by the European Union, and applying the accounting policies disclosed in the Group's 2013/14 Annual Report and Accounts on pages 82 to 86 except as described below. There are no new IFRS's or IFRIC's that are effective for the first time in the current year which have had a significant impact on the Group. This condensed consolidated financial information does not comprise statutory accounts within the meaning of Section 498 of the Companies Act Statutory accounts for the financial year ended 2 February 2014, were approved by the Board of Directors on 17 April 2014 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain any statement under Section 498 of the Companies Act Copies of the Company's Annual Report and Accounts are available from Premier Farnell plc, 150 Armley Road, Leeds, LS12 2QQ, England, or from the Company's website at Going concern basis After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements. Estimates The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed financial statements, the significant judgements made by management in applying thegroup s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 2 February Segment information 2014/15 Second half unaudited 2013/14 Second half unaudited Before Adjusting items After Before Adjusting items After adjusting items (Note 3) adjusting items adjusting items (Note 3) adjusting items Revenue Marketing and Distribution Division Americas Europe and Asia Pacific Other Distribution Businesses Total Marketing and Distribution Division Industrial Products Division Operating profit Marketing and Distribution Division Americas (0.7) 8.5 Europe and Asia Pacific 26.4 (0.2) Other Distribution Businesses Total Marketing and Distribution Division Industrial Products Division Head Office costs (6.5) (2.6) (9.1) (6.2) (1.7) (7.9) 42.5 (2.5) (1.7) /15 Full year unaudited 2013/14 Full year audited Before Adjusting items After Before Adjusting items After adjusting items (Note 3) adjusting items adjusting items (Note 3) adjusting items Revenue Marketing and Distribution Division Americas Europe and Asia Pacific Other Distribution Businesses Total Marketing and Distribution Division Industrial Products Division Operating profit Marketing and Distribution Division Americas Europe and Asia Pacific 57.2 (1.1) Other Distribution Businesses Total Marketing and Distribution Division 88.4 (1.1) Industrial Products Division Head Office costs (14.1) (3.8) (17.9) (13.1) (2.3) (15.4) 88.0 (4.9) (1.5) 91.5

13 3 Operating profit 2014/ / / /14 Statutory operating profit is stated after (charging)/crediting the following: Second Second Full Full half half year year unaudited unaudited unaudited audited - Restructuring costs (2.8) (2.6) (5.1) (3.9) - Net gain on US property disposal Acquisition costs - - (0.1) - - Remeasurement of the fair value of contingent consideration (2.5) (1.7) (4.9) (1.5) Due to their significance and nature, adjusted operating expenses and adjusted operating profit have been disclosed on the face of the income statement which excludes the items above. Restructuring costs incurred in the period relate to the Group s global business re-organisation and comprise the cost of redundancies completed in the period and change programme costs including consultancy in developing the proposed new organisational design. The 0.3 million net gain on US property disposal relates to savings on expenses incurred in the relocation of the MDD Americas Head Office. Acquisition costs of 0.1 million were incurred in the first half of the year in relation to the purchase of AVID Technologies. The net gain on US property disposal in prior year relates to the sale and relocation of the MDD Americas Head Office. Restructuring costs incurred in the prior year primarily relate to decisions taken to reflect re-alignment of focus on areas of greatest opportunity, drive efficiency of global operations and optimise financial performance. In addition, there was one-off gain in prior year related to a re-measurement of the fair value of contingent consideration payable in respect of the acquisition of Shenzhen Embest Technology Co Ltd. 4 Taxation The taxation charge represents an effective tax rate for the 2014/15 financial year on profit before tax and preference dividends of 30.0% (2013/14: 29.9%). After including adjusting items the effective rate is 29.9% (2013/14: 30.0%). 5 Earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the parent for the period by the weighted average number of ordinary shares in issue during the period, excluding those shares held by the Premier Farnell Executive Trust. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume issue of all dilutive potential ordinary shares, being those share options and awards with a non-market based performance condition granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the period. Reconciliations of earnings and the weighted average number of ordinary shares used in the calculations are set out below. 2014/ /14 Second half unaudited Second half unaudited Basic per Diluted per Basic per Diluted per Earnings share amount share amount Earnings share amount share amount pence pence pence pence Earnings per share Profit attributable to owners of the parent Restructuring costs Tax attributable to restructuring costs (0.8) (0.2) (0.2) (0.7) (0.2) (0.2) Net gain on US property disposal (0.3) (0.1) (0.1) (0.1) - - Tax attributable to gain on US property disposal Acquisition costs Tax attributable to acquisition costs Remeasurement of contingent consideration (0.8) (0.2) (0.2) Adjusted profit attributable to owners of the parent Number Number Weighted average number of shares 367,709, ,681,704 Dilutive effect of share options 1,322,335 3,038,534 Diluted weighted average number of shares 369,031, ,720, / /14 Full Year unaudited Full Year audited Basic per Diluted per Basic per Diluted per Earnings share amount share amount Earnings share amount share amount pence pence pence pence Earnings per share Profit attributable to owners of the parent Restructuring costs Tax attributable to restructuring costs (1.5) (0.4) (0.4) (1.1) (0.3) (0.3) Net gain on US property disposal (0.3) (0.1) (0.1) (1.6) (0.4) (0.4) Tax attributable to net gain on US property disposal Acquisition costs Tax attributable to acquisition costs Remeasurement of contingent consideration (0.8) (0.2) (0.2) Adjusted profit attributable to owners of the parent Number Number Weighted average number of shares 367,511, ,069,378 Dilutive effect of share options 1,498,900 2,763,398 Diluted weighted average number of shares 369,010, ,832,776 Adjusted earnings per share has been provided in order to facilitate year on year comparison.

14 6 Net financial liabilities 1 February 2 February unaudited audited Cash and cash equivalents Unsecured loans and overdrafts (250.1) (207.2) Net financial liabilities before preference shares and derivatives (206.3) (164.4) Preference shares (52.5) (63.4) Derivative financial instruments Net financial liabilities (256.6) (225.8) Net financial liabilities are analysed in the balance sheet as follows: Current assets Cash and cash equivalents Derivative financial instruments Current liabilities Other loans Derivative financial instruments (6.3) (1.8) (0.2) - (6.5) (1.8) Non-current liabilities Bank loans (66.4) (39.2) 5.2% US dollar Guaranteed Senior Notes payable 2017 (20.0) (18.3) 4.4% US dollar Guaranteed Senior Notes payable 2018 (38.8) (35.5) 4.8% US dollar Guaranteed Senior Notes payable 2021 (60.7) (55.4) 4.0% US dollar Guaranteed Senior Notes payable 2024 (56.5) (51.8) Other loans (1.4) (5.2) Preference shares (52.5) (63.4) (296.3) (268.8) At 1 February 2015, the Group's syndicate bank facilities totalled 250 million expiring in September Based on these facilities, the headroom on bank borrowings at 1 February 2015 was million. 7 Retirement benefit obligations The valuation of the Group's defined benefit pension schemes in the UK and the US has been updated at 1 February 2015 on an actuarial basis, applying current discount and inflation rate assumptions and incorporating the market value of assets at 1 February Remeasurements of post employment benefit obligations in the year of 26.7 million ( 18.9 million net of associated deferred tax) have been taken through the Consolidated Statement of Comprehensive Income. 8 Exchange rates The principal average exchange rates used to translate the Group's overseas profits were as follows: 2014/ / / /14 Second Second Full Full half half year year US dollar Euro Ordinary dividend The directors are proposing a final dividend in respect of the year ended 1 February 2015, of 6.0p per share which will absorb 22.0 million of shareholders' funds. As the final dividend is subject to approval at the Annual General Meeting of the Company, to be held on 16 June 2015, it has not been provided for as at 1 February Once approved, the final dividend will be paid on 25 June 2015 to shareholders on the register of members on 29 May Related party transactions The Group has not entered into any material transactions with related parties in the year.