ELECTROCOMPONENTS 2019 half-year financial results

ELECTROCOMPONENTS 2019 half-year financial results 20 November 2018

SAFE HARBOUR This presentation contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Electrocomponents plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. 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. Although Electrocomponents plc believes that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors, which may be beyond the control of Electrocomponents plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be listed, Electrocomponents plc has no intention or obligation to update forward-looking statements contained herein. 2

OVERVIEW Above market, sustainable growth and strong execution 9.8% like-for-like (1) revenue growth, continuing to drive share gains in large, fragmented market Adjusted (2) operating profit margin rose 1.5 percentage points aided by higher gross margin and cost control Strong growth in profit before tax, earnings and free cash flow Further improvement in customer experience Group NPS (3) up 3.8% IESA acquisition performing well >30% revenue growth and encouraging new contract wins Good progress on PIP II (4) positioning the Group to drive continued growth and superior returns (1) Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2018 converted at 2019 average exchange rates for the period. Revenue is also adjusted to eliminate the impact of trading days year on year. (2) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax. (3) Rolling 12-month Net Promoter Score a measure of customer satisfaction. (4) Second phase of Performance Improvement Plan (PIP). 3

AGENDA 1 FINANCIAL RESULTS David Egan CFO 2 PERFORMANCE IMPROVEMENT PLAN 3 4 BECOMING FIRST CHOICE REGIONAL PERFORMANCE Lindsley Ruth CEO 5 ACCELERATING OWN-BRAND GROWTH 6 7 VALUE-ADDED SERVICES IESA CURRENT TRADING & OUTLOOK 4

1 FINANCIAL RESULTS Significant progress

FINANCIAL HIGHLIGHTS > > > Strong revenue growth Improving profitability EPS and dividend growth Like-for-like revenue growth (%) Adjusted operating profit ( m) Adjusted EPS (p) 12.2 9.7 9.8 81.2 104.0 25.9% 13.0 17.2 30.5% RS Pro Digital Group H1 2018 H1 2019 Like-for-like change H1 2018 H1 2019 Like-for-like change Gross margin (%) Adjusted operating profit margin (%) 43.4 44.4 11.4 9.9 0.7 pts 1.4 pts 5.25 Dividend per share (p) 5.30 H1 2018 H1 2019 Like-for-like change H1 2018 H1 2019 Like-for-like change H1 2018 H1 2019 Significant growth in profit and earnings per share (1) Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2018 converted at 2019 average exchange rates for the period. Revenue is also adjusted to eliminate the impact of trading days year on year. (2) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax. (3) 2019 At Half-year the year Results end it was announced that in the normal course of business, the interim dividend would be equivalent to 40% of the prior year full-year dividend. 6

DRIVING OPERATIONAL EXCELLENCE GROSS MARGIN Progress > Going forward > 1.0 percentage point improvement 0.3 percentage point accretion from IESA acquisition 0.7 percentage point like-for-like improvement Driven by our own actions to: Grow higher-margin products, including RS Pro Improve discount discipline and pricing Foreign exchange broadly neutral Tougher H2 gross margin comparatives (gross margin was 43.4% in H1 2018 and 44.5% in H2 2018) but on track to deliver stable gross margin in our base business (1) in the full year We are focused on initiatives to drive gross margin: Growing higher-margin products: Accelerating new product introductions at RS Pro 5,400 new products in 2018 5,290 new products in H1 2019 On track for > 10,000 new products in 2019 Controls and process more discipline on discounting Pricing dynamic pricing tool to be rolled out in EMEA in H2 Smarter purchasing: Today strategic supplier engagement Tomorrow global sourcing initiatives Shifting our culture to focus on profitability (1) Base excludes the post-acquisition results of IESA. 7

Adjusted operating profit margin DRIVING OPERATIONAL EXCELLENCE OPERATING PROFIT MARGIN Operating profit margin We are focused on improving our operating profit margin towards best-in-class mid-teen operating profit margin Revenue growth, higher gross margin and improvement in adjusted operating profit conversion ratio to 25.7% (H1 2018: 22.7%) drove a 1.5 percentage point improvement in adjusted operating profit margin to 11.4% (H1 2018: 9.9%) 14% 13% 12% 11% 10% 9% 8% 7% 6% 9.9% 0.1% 2.7% 0.6% 0.6% 0.9% 0.2% 0.2% 11.4% FY18 H1 IESA Revenue Growth Gross Margin Inflation Digital People Other FY19 H1 Revenue growth and gross margin improvement Market growth and market share gains, plus improving product mix Disciplined investment In H1 we saw the annualisation of the step up in digital and innovation investment made in H2 2018. Despite this, adjusted operating costs grew at 7.8% on a like-for-like basis, below revenue growth of 9.8%. Adjusted operating costs as a percentage of revenue fell to 33.0% (H1 2018: 33.5%) 8

SUMMARY INCOME STATEMENT Highlights Revenue saw an adverse impact from currency ( 7.5 million); this was partially offset by a positive impact from extra trading days ( 4.3 million) Net finance costs increased to 3.9 million (H1 2018: 2.2 million) Adjusted PBT excludes: 5.4 million labour-related restructuring costs 1.8 million amortisation of intangible assets arising on acquisition of IESA H1 2019 adjusted tax rate of 24% (H1 2018: 28%) m H1 2019 H1 2018 Reported Adjustments Adjusted (1) Reported Adjustments Adjusted (1) Revenue 911.8-911.8 823.8-823.8 Operating profit 96.8 7.2 104.0 77.9 3.3 81.2 Net finance costs (3.9) - (3.9) (2.2) - (2.2) Share of profit of JV 0.1-0.1 - - - Profit before tax 93.0 7.2 100.2 75.7 3.3 79.0 Income tax expense (23.0) (1.2) (24.2) (21.2) (0.6) (21.8) Profit for the period 70.0 6.0 76.0 54.5 2.7 57.2 Earnings per share (p) 15.9 1.3 17.2 12.4 0.6 13.0 (1) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax. 9

CASH FLOW Highlights m H1 2019 H1 2018 Cash generated from operations increased to 68.8 million (H1 2018: 44.8 million) Working capital as a percentage of sales increased by 1.5 percentage points to 22.7% Like-for-like increase was 0.3 percentage points Balance relates to acquisition of IESA H1 2019 capex was 0.9 times depreciation (H1 2018: 0.7 times) expect the full year to be around 1.7 times Adjusted operating cash flow conversion (1) 55.3% (H1 2018: 44.5%) Net debt increased to 139.0 million (H1 2018: 124.5 million) Additional short-term investment of around 30 million in fast-moving inventory in H2 to ensure we can maintain customer service during the UK s exit from the EU EBITDA 111.8 90.7 Movement in working capital (49.1) (50.7) Movement in provisions 2.2 2.4 Other 3.9 2.4 Cash generated from operations 68.8 44.8 Net interest paid (3.2) (2.5) Income tax paid (20.3) (16.2) Net cash from operating activities 45.3 26.1 Net capital expenditure (14.5) (9.4) Free cash flow 30.8 16.7 Add back cash effect of adjustments (2) 3.2 0.7 Adjusted free cash flow 34.0 17.4 (1) Adjusted operating cash flow conversion is adjusted free cash flow before income tax and net interest paid as a percentage of adjusted operating profit. (2) Adjusted excludes the impact of substantial reorganisation cash flows. 10

2 PERFORMANCE IMPROVEMENT PLAN PHASE II Setting ourselves up to drive continued success

PERFORMANCE IMPROVEMENT PLAN II - UPDATE Objective To build an even more customer-centric, lean and scalable platform for growth Simple Customer Centric New simpler regional structure in place More activities and decision making taking place closer to the customer Scalable Good progress at building a scalable platform to support growth 12

Suppliers Customers PERFORMANCE IMPROVEMENT PLAN II - UPDATE Corporate Services Simple New regional model More activities closer to customers and suppliers Increased accountability On track to deliver: 4 million of savings in year to March 2019 12 million of cumulative annualised savings by March 2021 EMEA Americas Asia Pacific Regional focus: Sales Product & Inventory Marketing & Digital People Finance Group Finance Group HR Group Legal Corporate Development Commercial Services Technology Sourcing Pricing RS Pro Electronics Supply Chain 13

PERFORMANCE IMPROVEMENT PLAN II - UPDATE Scalable Global shared services strategy New regional centre of expertise (CoE) opened for Asia Pacific in Foshan, China Today 100 people in finance, customer services and inventory H2 expansion digital content teams, Australia / New Zealand support functions Building the engine to support continued growth and drive improved service at lower cost Shared services Automation Customer-centric supply chain EMEA regional shared service CoE in Corby Focus today is finance and customer services but scope to expand over time Establishing regional CoE in the Americas Global automation Pilots complete, third party automation partner identified and on track to deliver our first automated solution this financial year Identifying standardised transactional activities across the business which could be automated Plans to scale the use of automation across the business Optimise and invest in supply chain Global track and trace capability now live Launching global project to optimise transportation 14

3 BECOMING FIRST CHOICE Sustainable growth and superior returns over the longer term

OUR MISSION Becoming first choice More than just a slogan Fundamental development of the entire organisation Delivering a customer-centric, scalable and agile business capable of driving sustainable growth Sustainable growth and superior financial returns over the long term 16

WHICHEVER WAY YOU LOOK AT IT, OUR MARKETPLACE IS LARGE Our market today Large Highly fragmented Traditional competition Largely offline businesses Regional / local players and / or vertical sub-category specialists (1) MRO is Maintenance Repair and Operations. (2) HSE is the High Service Electronics market. (3) B2B is Business to Business. (4) A&C is Automation and Control. (5) OEM is an Original Equipment Manufacturer. (6) IPE is Interconnect, Passive and Electromechanical. c. 300bn Global Electronic component market Source: DiscoverIE $140bn US MRO (1) market Source: Fastenal $570bn Global MRO (1) market Source: W.W. Grainger Our market is large and highly fragmented. We have significant scope to grow market share organically and via acquisition c. 400bn Global MRO (1), HSE (2) market Source: Electrocomponents c.$1 trillion US B2B (3) e-commerce market Source: Forrester Research $155bn Global A&C (4) market Source: Business Wire $800bn US MRO (1) & OEM (5) market Source: WESCO $343bn Semiconductor and IP&E (6) market Source: Avnet 17

Multiple of UK manufacturing GDP A SIGNIFICANT OPPORTUNITY TO TAKE SHARE Our differentiation Global scale Digital leadership / expertise One-stop shop Range and inventory availability 20 15 10 We have significant potential to grow the number of customers we serve. We have > 160K customers in the UK, over 2x that of the US, despite the fact that the US market is > 9x the size of UK 200,000 150,000 100,000 Customers Technical expertise and valueadded services 5 50,000 0 UK Germany Japan US China 0 Manufacturing GDP (1) Number of customers We are focused on driving growth in customer numbers (1) Source: Oxford Economics. 2017 manufacturing value-added output, real US$, at constant 2010 prices and exchange rates. 18

WE ARE FOCUSED ON DRIVING SHARE IN A FRAGMENTED MARKET Increasing spend with existing customers Growing our customer base Organic investment and acquisitions to accelerate strategy We will be disciplined in our allocation of strong cash flow between investment in business to drive sustainable growth and superior returns for shareholders 19

4 REGIONAL PERFORMANCE Driving share in the regions

ANOTHER STEP FORWARD IN CUSTOMER / SUPPLIER EXPERIENCE Customercentric Driving a best-in-class online experience Optimised and simplified online navigation Scaled data-driven personalisation making online experience more relevant to the user Introduced solution-orientated bundles to provide customers with all the associated parts to build a solution Further acceleration in our mobile first strategy with improved mobile experience faster page loads and search improvements Other customer and supplier improvements Continuous improvement project to drive a better returns process Significant reduction in the time to launch new products from an average of 162 days in Q1 2018 to 27 days in Q2 2019 Improvement in our on time to promise (OTTP) delivery of back orders (1) with a 25% improvement in monthly OTTP during the current financial year (1) Back orders are when stock is not held at the time the order is placed. All our regions saw improved customer Net Promoter Scores in H1 21

Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Customers DRIVING MARKET SHARE Strong revenue growth across board > Increasing average order value across existing and new customers > Like-for-like revenue growth % 725,000 Digital marketing step-up 190 EMEA Americas Asia Pacific 9.3 9.6 10.9 650,000 575,000 500,000 Average order value (AOV) we are selling more to our customer base and growing our customer count via digital and more effective marketing 180 170 160 Average order value 0 4 8 12 FY2016 FY2017 FY2018 H1 2019 Estimated market growth Estimated market share gains Average order value (AOV) Customer numbers When we are first choice, our research shows customers spend 25% more with us 22

REGIONAL PERFORMANCE EMEA Highlights 9.3% like-for-like revenue growth Strong market share gains All sub-regions in growth Selling more to existing customers Improved customer experience NPS up 4.3% Broader offer and value-added services Better utilisation of our sales resource Data-driven website personalisation and solution - based selling Adding new customers Brand awareness and digital marketing Gross margin improvement and tight cost control 16.6% like-for-like operating profit growth and further improvement in operating profit margin to 15.5% m H1 2019 H1 2018 Like-for-like change (1) Northern Europe revenue 254.2 217.8 10.8% Southern Europe revenue 171.7 158.7 6.6% Central Europe revenue 126.0 112.6 10.8% Emerging Markets revenue 23.8 22.2 7.4% EMEA revenue 575.7 511.3 9.3% EMEA operating profit 89.1 73.5 16.6% EMEA operating profit margin (%) 15.5% 14.4% 0.9 pts (1) Like-for-like adjusted for currency and to exclude the impact of acquisitions; revenue also adjusted for trading days. Significant market share gains driving growth 23

REGIONAL PERFORMANCE Americas Highlights Double-digit like-for-like revenue growth Half market / half share gain Selling more to existing customers Improved customer experience NPS up 2.7% Range expansion 19,500 new stocked products in H1, warehouse expansion project Automation and Control focus driving share m H1 2019 H1 2018 Like-for-like change (1) Revenue 240.2 222.8 10.9% Operating profit 31.4 25.8 25.6% Operating profit margin (%) 13.1% 11.6% 1.6 pts Introducing RS Pro to our customer base Adding new customers Brand awareness and digital marketing Geographic expansion (Mexico) Gross margin improvement Discount discipline RS Pro expansion 25.6% like-for-like growth in operating profit, improved operating profit margin (1) Like-for-like adjusted for currency; revenue also adjusted for trading days. Strong growth, gross margin improvement and tight cost control 24

REGIONAL PERFORMANCE Asia Pacific Highlights 9.6% like-for-like revenue growth Outgrowing the market: Australia / New Zealand, South East Asia Growing more in line with market: China / Japan We have fixed many of the basics Improved customer experience NPS up 18.2% Restructured cost base m H1 2019 H1 2018 Like-for-like change (1) Revenue 95.9 89.7 9.6% Operating profit / (loss) 0.7 (3.9) 115.9% Operating profit / (loss) margin (%) 0.7% (4.3)% 5.7 pts Opened shared service centre in Foshan We need to build our capabilities to grow Strengthen local leadership team Improve local online experience Develop and build local offer Good progress on RS Pro Local reseller strategy Profitable in H1. Need to drive scale to improve profitability longer term (1) Like-for-like adjusted for currency; revenue also adjusted for trading days. Fixed basics, investing to build capabilities to drive faster growth 25

6 ACCELERATING OWN-BRAND GROWTH

RS PRO BECOMING FIRST CHOICE FOR QUALITY AND VALUE Outperforming Group growth Revenue growth accelerated to 12.2% in H1 Focused on key markets Strong today: UK > 20% of revenue and France around 15% of revenue Opportunities: Americas, Germany, Italy and China New channels to market Reseller partnerships IESA opportunities Data-driven range expansion 10,000 new products in 2019 Expand range in A&C and IP&E Localise range in T&C Longer term we aspire to generate 20% of revenue from RS Pro 27

5 VALUE-ADDED SERVICES IESA ACQUISITION

VALUE-ADDED SERVICES BECOMING FIRST CHOICE IESA acquisition Strong initial contribution 11 million revenue and 2.8 million adjusted operating profit in first four months of ownership by Group > 30% like-for-like revenue growth during first four months Accretive to Group gross margin and Group operating profit margin Encouraging new business pipeline with contract wins from blue chip clients On track to cover our cost of capital in first full year of ownership Deepens customer relationships Extends value-added services Fast growing and accretive 29

VALUE-ADDED SERVICES BECOMING FIRST CHOICE Significant potential IESA has 80 blue chip customers across 7 countries Further growth with IESA s existing client base UK and overseas Potential to sell IESA s services to RS and Allied customers over time 2018 France Scope to deepen the supplier relationship between RS, RS Pro and IESA 2001 Ireland 2007 2008 Germany 2016 Singapore Sweden Slovakia 30

7 CURRENT TRADING AND OUTLOOK Well positioned to show continued strong progress in current financial year

AN ENCOURAGING START TO H2 2019 We have seen around 7% like-for-like revenue growth in the first seven weeks of the second half While the external environment in some of our key markets is uncertain, we are focused on driving market share We are tightly managing our costs, while investing to drive longer-term growth We are on track to deliver savings of 4 million in the year to 31 March 2019 and 12 million of savings by March 2021 We continue to make strong progress in full year 32

SUMMARY Well positioned to continue to drive sustainable growth and superior returns for shareholders We have a significant market opportunity We have invested in talent and are building a simple, scalable model so we are well placed to exploit it We will continue to drive share gains via: A relentless focus on the customer Leadership in digital Expansion of our range and value-added service offering We will look to use value accretive acquisitions to accelerate our strategy We remain excited by the significant opportunity for continued growth and improvement 33

8 Q&A Thank you for your continued interest in Electrocomponents

9 APPENDIX

STORY IN A NUTSHELL 1 SIGNIFICANT MARKET OPPORTUNITY We estimate the overall high-service electronics and industrial market in which we operate is valued a c. 400bn Growing at GDP+ Highly fragmented but beginning to see consolidation Digitally immature but digital transition now starting 2 DRIVING MARKET SHARE GAINS Market-leading customer service Leadership in digital Strong supplier relationships, product knowledge and technical expertise Best-in-class sales process and go-to-market approach Value-added services Differentiation with technology, innovation and data-led insight 3 BUILDING A LEAN AND SCALABLE MODEL We aim to maintain stable and where possible grow our gross margin We are committed to using shared services and automation to lower our cost to serve while continuing to drive improved service Since 2015, we have increased our adjusted operating profit conversion ratio from 15.3% to 25.7% at H1 2019, and our long-term goal is to further improve this ratio to 30% Over the same period, we have increased adjusted operating profit margin from 6.7% to 11.4% at H1 2019 and our long-term aspiration is to achieve a mid-teen adjusted operating profit margin 4 STRONG CASH GENERATION We are a highly cash-generative business We will be focused on disciplined reinvestment both organic and inorganic to accelerate top-line growth We are committed to growing our dividend while improving dividend cover and generating attractive returns for our shareholders c. 400bn market opportunity >2X market growth is our goal 30% adjusted operating profit conversion ratio is our goal > 80% adjusted operating cash flow conversion 36

PERFORMANCE OVER TIME Since the change in management in April 2015 and the launch of the first Performance Improvement Plan in November 2015, Electrocomponents has delivered significantly improved financial results Adjusted operating profit margin has increased from 6.7% in 2015 to 11.4% in H1 2019 The Group has also consistently grown adjusted operating profit and adjusted earnings per share over this period Return on Capital Employed has also benefited since the company s turnaround strategy, rising from 13.4% in H1 2016 to 26.4% in H1 2019 Adjusted operating profit ( m) 95.9 104.0 75.5 81.2 57.7 48.2 33.8 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 Adjusted earnings per share (p) 15.4 17.2 11.9 13.0 7.4 9.1 5.2 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 Return on Capital Employed (ROCE) 28.6% 26.4% 25.2% 22.0% 17.6% 13.4% 14.5% H1 16 FY16 H1 17 FY17 H1 18 FY18 H1 19 (1) Adjusted excludes amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax. (2) ROCE is adjusted operating profit for 12 months expressed a percentage of net assets excluding net debt and retirement benefit obligations. 37

BASIS OF PREPARATION Unless otherwise stated: Figures have been prepared using International Financial Reporting Standards as adopted by the European Union Adjusted measures of profitability and cash flow exclude amortisation of intangible assets arising on acquisition of businesses, substantial reorganisation costs, asset write-downs, one-off pension credits or costs, significant tax rate changes and associated income tax Like-for-like change excludes the impact of acquisitions and the effects of changes in exchange rates on translation of overseas operating results, with 2018 converted at 2019 average exchange rates for the period. Revenue is also adjusted to eliminate the impact of trading days year on year Changes in profit, cash flow, debt and share-related measures such as earnings per share are, unless otherwise stated, at reported exchange rates Sign conventions: % changes in revenue and costs are positive if improving profit and negative if reducing profit A net charge of 7.2 million (H1 2018: 3.3 million) was reported for items excluded from adjusted profit before tax 38

GUIDANCE POINTS Trading days Expect around 9 million positive impact on revenue from additional trading days in the year to March 2019 Other guidance points Capex: 40 million Allied warehouse expansion project will mean capex to depreciation running at closer to 1.7x in 2019 and 2020 Stock turn: 2019 will be c. 2.5x given additional potential inventory investment to maintain service during the UK s exit from the EU 2019 effective tax rate: 24% Cash tax rate: to converge with profit and loss rate over time Remain committed to a progressive dividend policy. In the normal course the interim dividend will be equivalent to 40% of prior year full-year dividend Foreign exchange Currency movements decreased H1 2019 adjusted profit before tax by 0.8 million If November rates persist we would expect around a 0.7 million benefit on adjusted profit before tax in the full year * Foreign exchange rates (average for the period) H1 2019 rates H1 2018 rates 2019 rates* Euro 1.13 1.14 1.13 USD 1.33 1.29 1.31 * 2018 adjusted profit before tax converted at 2019 forecast average rates, using 16 November 2018 closing rates extrapolated for rest of year. 39

GROUP FINANCIAL HIGHLIGHTS ( m) H1 2018 H1 Like-forlike 2017 H1 2019 H1 2018 Change Adjusted cash generated from operations 45.5 change 82.1 Revenue ( m) 911.8 823.8 10.7% 9.8% Net interest paid (2.5) (2.6) Gross profit ( m) 404.8 357.4 13.3% 11.9% Adjusted Income tax operating paid profit ( m) 104.0 81.2 (16.2) 28.1% (9.2) 25.9% Adjusted PBT net ( m) cash inflow from operating activities100.2 79.0 26.826.8% 70.3 24.9% Adjusted Net capital EPS expenditure (p) 17.2 13.0 (9.4) 32.3% (8.4) 30.5% Adjusted free cash flow ( m) 34.0 17.4 95.4% Adjusted (1) free cash flow 17.4 Net debt ( m) 139.0 124.5 61.9 Outflow related to restructuring (0.7) (3.0) Like-for-like Free cash flow revenue post restructuring growth (%) 9.8 13.3 16.7 58.9 Gross margin (%) 44.4 43.4 1.0 pts 0.7 pts Net debt (124.5) (140.9) Adjusted operating profit margin (%) 11.4 9.9 1.5 pts 1.4 pts Adjusted operating profit conversion (%) 25.7 22.7 3.0 pts 2.8 pts Adjusted operating cash flow conversion (%) 55.3 44.5 Net debt to adjusted EBITDA (x) 0.6 0.7 Return on capital employed (%) 26.4 25.2 40

KEY PERFORMANCE INDICATORS KPI Changes We have changed our Net Promoter Score from RS to Group We are changing Group Lost Time Accident frequency to All Accidents H1 2019 H1 2018 Change Like-for-like revenue growth (%) 9.8 13.3 (3.5) pts Group Net Promoter Score 52.5 50.6 3.8% Adjusted operating profit conversion (%) 25.7 22.7 3.0 pts Adjusted operating profit margin (%) 11.4 9.9 1.5 pts Adjusted EPS (p) 17.2 13.0 32.3% Return on capital employed (%) 26.4 25.2 1.2 pts Adjusted operating cash flow conversion (%) 55.3 44.5 All Accidents 26 29 Driving an improved performance for customers, suppliers and shareholders 41

Adjusted operating cost ( m) ADJUSTED OPERATING COSTS Cost discipline Like-for-like adjusted operating cost growth of 7.8%, less than revenue growth of 9.8%. Adjusted operating cost as percentage of revenue fell to 33.0% (H1 2018: 33.5%) Improvement in adjusted operating profit conversion ratio to 25.7% (H1 2018: 22.7%) 310 300 290 280 270 260 250 Like-for-like change 2.0% 1.4% 0.6% 3.0% 0.7% H1 FY18 FX IESA Inflation Volume FTEs Digital Other H1 FY19 Inflation 2.0% inflationary rises in wages Volume-related costs During H1 2019 we saw higher variable costs driven by revenue growth Disciplined investment Annualisation of the increased investment seen during H2 2018 in areas such as digital, talent and innovation 42

NET DEBT MOVEMENTS Strong balance sheet Net debt rose to 139.0 million, 74.0 million higher than at 31 March 2018 with the increase largely due to the acquisition of IESA and associated loans In May 2018 the Group arranged a new 120 million two-year loan Net debt: EBITDA 0.6x (H1 2018: 0.7x) Pension Combined deficit 66.1 million (September 2017: 100.9 million) m H1 2019 H1 2018 Net debt at 1 April (65.0) (112.9) Adjusted free cash flow (1) 34.0 17.4 Acquisition of business (30.9) - Cash and cash equivalents acquired with business 1.0 - Loans acquired with business (42.0) - Cash effect of adjustments (3.2) (0.7) Equity dividends paid (35.4) (32.2) New shares issued 2.1 0.3 Purchase of own shares by Employee Benefit Trust - (1.3) Translation differences 0.4 4.9 Net debt at 30 September (139.0) (124.5) (1) Adjusted excludes the impact of substantial reorganisation costs. 43

IMPACT OF FOREIGN EXCHANGE Translation Exposure Reported profit sensitivity to a one cent movement in: Euro: 1.3 million USD: 0.4 million Euro and USD movements to Sterling to $ to 1.50 1.40 1.30 1.20 1.10 1.00 Transaction Exposure Group treasury maintains 3-6 month hedging to smooth impact of currency movements Key exposures: net buyer of US dollars, net seller of euros and other currencies Gross margin impacted over time from weakening in sterling versus: USD: negative impact Euro and other currencies: positive impact 44