Interim Results 6 months to June 30 th, 2012

Highlights Group revenues up 5% to €1.05bn Exchange rate benefit Underlying operating profit up 19% to €31.3 million Underlying profit before tax up 18% to €23.8 million UK merchanting revenues up 4% Irish merchanting revenues fall by 9% Self-help measures improve profitability 2

Revenue by Geographic Area Revenue by Business Segment €1.05bn Revenue by Business Segment and Geography Manufacturing 2% Retailing 9% UK 76% Ireland 23% Belgium 1% Merchanting 89% 3

Operating Environment Uneven recovery in economy Economy in mild recession Consumer spending weak due to pressure on take-home pay RMI Market reasonably stable despite macro economic weakness Merchanting UK Merchanting Ireland Retailing Modest economic growth driven by exports Further contraction in merchanting volumes to historically low levels Weakness in DIY Market due to the austerity programme, deleveraging by consumers and adverse weather conditions 4

Merchanting UK Merchanting Ireland Retailing Self-Help Measures Cost reductions and development of the hire division in Buildbase Sales initiatives in Plumbase to increase market share Developing turnover in more recently opened Selco stores Integration of specialist businesses engaged in the distribution of indoor construction products and bathroom products Significant cost reductions Branch consolidations Examinership - Atlantic Home Care Manufacturing Closure of CPI 5

UK Merchanting Revenue780,547712,6489.5%3.8% Operating profit37,53231, %11.6% Operating margin4.8%4.5% €’000€’000 % Change ReportedConstant Currency % Change ReportedConstant Currency Economy has slipped back into a mild recession Lending to households has tightened and interest costs have moved higher Labour market resilient – private sector employment up Housing transactions increased Trading Merchanting market declines by an estimated 4% Growth in average daily like for like turnover of 1.4% Business traded ahead of the market Increased turnover and profit in Buildbase, Selco, Plumbase and Macnaughton Blair Specialist brands exposed to housing and infrastructure markets performed strongly Market 6

Irish Merchanting Revenue136,369149,399(8.7%) Operating profit8971,060(15.4%) Operating margin0.7% €’000€’000 % Change Economy forecast to show modest growth in 2012 Domestic demand weak as household spending continued to decline Housing market has declined to an unsustainable level - completions forecast at 5,000 units this year RMI market down due to fall in discretionary spending Turnover declined by 8.7% Improved market position – a number of competitors reduce capacity and exit market Gross margin maintained despite competitive pressure and overheads cut by 10% (€4m) Profitability close to last year’s level despite sharp fall in turnover Branch consolidations in Dublin, Cork and Limerick Trading Market 7

Retailing Revenue98,223112,085(12.4%) Operating loss(3,523)(431) – €’000€’000 % Change Retail spending continued to decline Weak labour market and falling disposable incomes weigh on demand Improvement in consumer confidence not translating into increased spending Trading Turnover down by 12.4% Trading affected by decline in consumer spending and heavy rainfall in April and June which reduced demand for outdoor products Fall in transactions by 10% - average transaction values down by 2.4% - change in mix Glasnevin and Blanchardstown stores extended Examiner appointed to Atlantic Home Care Atlantic Home Care operating loss of €2.2m Market 8

Belgium & Manufacturing Economy to flat line in 2012 – performing ahead of other European economies New housing and RMI markets weaken Turnover growth from two acquisitions completed in the second half of 2011 Other acquisition opportunities under review in consolidating market Current annualised turnover of JV is €55m Manufacturing Division returned to profitability Volumes lower in UK mortar market due to fall in housing starts and adverse weather conditions in the second quarter CPI closed Continuing manufacturing business in Ireland operated at close to breakeven Belgium 9

Half-Year Results Pre - Exceptional Items & Amortisation Revenue 1, , %0.6% Operating profit %11.5% Operating margin 3.0% 2.6% – Finance expense (net) % Profit before tax % Adjusted earnings per share 8.1 cent 7.2 cent 11.6% Dividend 3.0 cent 2.75 cent 9.1% €m€m % Change on prior period ReportedConstant Currency % Change on prior period ReportedConstant Currency 10

Revenue Analysis 1,008 1,055 Merchanting UK Merchanting €m 11

Operating Profit Analysis 26,213 31,262 Merchanting €’000 * % movements are against H

Cash Flow €m 13

Free Cash Flow and Net Debt

Net Debt & Shareholders’ Equity Gearing 52%50%35% 26% 23%20%

Total Group debt facilities amount to €452m of which €112m was undrawn at 30 June 2012 Weighted average maturity profile of 3.4 years Offer to roll €85m to 2015* Debt Facilities Maturity Profile 16

Debt Covenants EBITDA - 12 month rolling adjusted€101.2m€101.5m€97.4m EBITDA interest cover7.1 times7.7 times7.2 times Minimum interest cover3.0 times1.0 times3.0 times Shareholders’ equity (as defined)€1,071m€1,131m€1,094m Minimum shareholders’ equity€789m€788m€783m Debt to equity ratio19%22%21% Debt to equity ratio limit85% Significant headroom on covenants Net debt reduced to €200.6m at 30 June 2012 (31 December 2011: €225.9m) Cash deposits were €138.5m at 30 June 2012 (31 December 2011: €134.6m) Undrawn committed revolving term bank facilities were €112m at 30 June 2012 (31 December 2011: €120m) First HalfFirst HalfFY

Summary Balance Sheet Property, plant and equipment Intangibles Financial assets0.1 – 1,161.71, Working capital (6.2) Income and deferred tax(38.3)(37.8)(0.5) Retirement benefit obligations(57.7)(33.6)(24.1) Provisions(40.6)(42.3)1.7 1,191.51,208. 7(17.2) Net debt(200.6)(225.9)25.3 Shareholders’ Funds June 31 Dec Change €m€m€m Change €m 18

Acquisitions and Developments Macnaughton Blair acquired Brooks two branch merchanting business in Northern Ireland The Belgian JV benefitted from two single branch acquisitions completed in second half of 2011 Two merchanting branches were opened under the Jacksons and Plumbase brands Selco opened a new branch in Hanworth, South East London in July and further branch openings are planned 19

Strategic Focus Continued margin growth in UK merchanting branches Development of Selco branch network Selectively participate in further consolidation in UK merchanting market Responding to challenging market conditions in Ireland Development of merchanting business in third geography Maintaining strong cash generation and balance sheet 20

Second Half Outlook Outlook for the UK economy is uncertain Consumers to benefit from low inflation and interest rates UK RMI market conditions to remain challenging Demand is expected to remain weak in Irish merchanting and DIY markets Emphasis on self-help measures to increase operating profit 21

Summary and Conclusion Continued operating profit improvement in difficult markets Portfolio of resilient businesses with improving market positions High operating cash flow, reduced cost base and spare capacity in branch network Good platform to benefit from any recovery in market conditions from cyclical lows 22

Locations Merchanting UK Merchanting Ireland DIY Ireland.co.uk Belgium Manufacturing 23

Supplementary Information

Historic Lows Housing Starts & Completions – GB Significant pent-up demand 182, , , , , , , ,980 25

Historic Lows House Completions – Ireland Current activity is at an unsustainably low level 26

Estimated UK Merchanting League Table Sector Turnover £12 billion plus Independents £4.6 billion plus 3rd Largest Builders Merchant Circa 2,000 independents 27

Operating Margin History (Core – Before Central Costs) %10.8%8.7% %5.5%4.9% %-1.7%1.6% %0.4%3.0% %0.7%3.2% 2012 (H1)4.8%-1.3%3.4% 2011 (H1)4.5%-0.4%3.2% *Includes Belgium from 2011 YearUKROIGroup* 28

29 For Further Information Gavin Slark Chief Executive Officer Colm Ó NualláinFinance Director Charles RinnGroup Financial Controller / Secretary Address:Grafton Group plc, Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18 Telephone: Fax: Web: