SIG plc | Preliminary Results for the year ended 31 December March 2012

– Moving in the right direction Sales up by 8% - continued market outperformance Operating margin +40bps and PBT +27% to £81.7m Increased focus on core markets after divestment of 3 businesses Delivering additional efficiency savings New branches performing strongly - sales > £100m Presentation based on continuing operations, unless specifically stated. Significant improvement in debt and ROCE +230bps

Financial Review Doug Robertson | Group Finance Director

4 Good progress on key financials Change Revenue*£2,744.8m£2,545.4m+7.8% Gross margin*25.6%25.4%+20bps Operating profit*£95.6m£77.8m+22.9% Operating margin*3.5%3.1%+40bps Profit before tax*£81.7m£64.2m+27.3% Basic EPS*9.4p7.4p+27.0% Dividend per share2.25p-- Net debt£115.9m£185.0m-37.4% Return on Capital Employed (post-tax)7.9%5.6%+230bps * On an underlying basis, excluding other items relating to the amortisation of acquired intangibles, impairment charges, restructuring costs, profit and loss arising on sale of businesses, trading profits and losses associated with disposed businesses and gains and losses on derivative financial instruments.

Significant improvement in operating profit £m 2011 FY Change 2011 H H1 Revenue Mainland Europe1, % UK & Ireland1, % Group2, % 1,401.11,343.7 Operating profit* Mainland Europe % UK & Ireland % Group** % * On an underlying basis, excluding other items relating to the amortisation of acquired intangibles, impairment charges, restructuring costs, profit and loss arising on sale of businesses, trading profits and losses associated with disposed businesses and gains and losses on financial instruments. ** Adjusted for parent company costs. 5 NB: Continuing operations

6 Group revenues up by nearly 8% %£m Price Volume Constant currency Exchange* Total £m * Euro/£ conversion rate of 2011: & 2010: NB: Continuing operations

PBT growth driven by sales increase and improved gross margin 7 £m Increased staff and fuel costs16.7 Investment in organic growth11.1 Other0.4 £m NB: Underlying PBT from continuing operations

8 Significant reduction in net borrowings £m Cash inflow from trading (Increase)/reduction in working capital (17.6)6.7 Cash inflow from operations Interest and tax (25.0)(26.9) Net capex (15.5)(12.0) Free cash flow Dividends (4.4)- Proceeds from sale of businesses Exchange and fair value movements (5.7)12.1 Other (7.0)(2.5) Decrease in borrowings Opening debt (185.0)(254.5) Closing debt(115.9)(185.0)

9 Working capital at historic low Cash conversion ahead of target Stock days4142 Debtor days42 Creditor days3435 Working capital / sales8.2%8.6% Cash conversion*116%155% Medium term cash conversion* (last 3 years)170%150%  Working capital/sales ratio at historic low for the Group  Continued tight control of bad & doubtful debt  Well ahead of medium term cash conversion target of 100% * Excludes cash costs on restructuring and one-off pension payments.

Strengthened balance sheet Leverage now less than 1x 10

Debt facilities and covenants  £250m revolving credit facility  repayment March 2015  £234m private placement notes  repayment in 2013/2016/2018 CovenantActual Interest cover>3x7.2x Leverage<3x0.9x Total facility of £484m 11

Increasing returns on capital employed SIG ROCE* SIG WACC* Targeting ROCE to exceed WACC in 2012 ROCE is a key area of management focus and we are making good progress towards returning SIG to economic profitability * post-tax 12

2012 Financial objectives  Drive ROCE above WACC  Continue to improve operating margin  Contain growth in fixed costs c.2%  Maintain strong balance sheet and leverage < 1x  Ensure medium term cash conversion ahead of target  Restore progressive dividend policy 13

Chris Davies | Chief Executive Business Review and Outlook

Delivered on key objectives Financial Improve operating margins and return on capital Strengthen the balance sheet Reinstate dividend Operational To outperform the market, without sacrificing gross margin Leverage the network Drive efficiencies Strategic Invest in organic growth Increased focus on three core markets, divesting non-core operations Restructure UK business consistent with Mainland Europe 15

16 Trading highlights – Mainland Europe Germany & AustriaFrance Poland & Central Europe  Sales +14.5% to £605.2m (+12.9% cc)  Gross Margin +30bps  Good growth in residential market, particularly new-build  Non-residential market remained sluggish  All SIG divisions performed strongly  Sales +9.7% to £165.6m (+11.3% cc)  Gross Margin -50bps  Polish market grew strongly - SIG sales +9.1% (+11.5% cc) and GM +20bps  Consolidated Central Europe management team so now operates as a single region  Sales +9.1% to £616.6m (+7.5% cc)  Gross Margin +20bps  Good growth in residential market  Also some pick up in non-residential activity  Both SIG divisions performed strongly SIG is geographically well diversified and operates in the more resilient economies of Northern Europe Benelux*  Sales +9.8% to £156.4m (+8.2% cc)  Gross Margin +10bps  Benelux remained challenging with market volumes declining  Good performance by SIG given economic conditions * Including international air handling business, headquartered in the Netherlands. Mainland Europe: Sales +11.3% to £1,543.8m (10.1% cc) & Gross Margin +20bps to 24.9%

17 Trading highlights – UK & Ireland United Kingdom  Sales +3.9% to £1,123.7m and Gross Margin +30bps  UK distribution sales +3.7% and +3.0% in H2  Residential market slightly positive  Non-residential broadly flat - commercial sector regionalised with London & South East robust, weaker elsewhere  Public sector starting to weaken towards end of 2011  SIG Energy Management - some improvement in H2 as Energy suppliers began to react to CERT requirements Ireland  Sales +0.9% to £77.3m (-0.5% cc) and Gross Margin +10bps  Market conditions remain challenging  SIG made a small underlying operating profit in 2011 Majority of £5m efficiency savings identified from closure of 15 branches in UK & Ireland. Initiatives currently being implemented - full benefit realised in UK & Ireland: Sales +3.7% to £1,201.0m & Gross Margin +30bps to 26.5%

SIG outperformed the market by nearly 3% in Source: company estimates.  SIG consistent market outperformance of c.3% p.a.  Two-thirds of outperformance attributed to existing sites; one-third new branches  Existing branches outperformance driven by new sales resources and increased cross-selling

Investment in organic growth  Investment in organic growth is a strategic priority for SIG  Carefully targeted branch opening programme - maintained even during recent downturn  Further 18 branches opened during 2011  14 in Mainland Europe, of which 7 were in France & 4 in Germany  4 in the UK, including 2 Builders Express branches  Going forward expect to open a further new branches p.a.  Flex depending on suitable opportunities and economic environment  Focus on traditional formats in Mainland Europe and Builders Express in UK  More targeted towards residential markets  Strategy working, with new branches opened performing strongly 19

Performance of new branches New branches opened contributed > £100m sales and c.4% RoS in 2011 With a typical branch taking on average 5-6 years to reach full maturity there is still significant growth to come 20

New formats – Builders Express in the UK  Targeting new customers and filling gaps in SIG’s current coverage  Differentiation based on service, technical expertise and multi-specialist offering  c.85% of products sourced from SIG’s existing specialist range  Typical branch sales £1.5m – £2m p.a. at maturity  Targeting minimum six further sites in 2012, with a focus on London and South East England 21 5 sites opened to date Gloucester Gatwick Farnborough Brentford Maidstone

Restructured UK business and divested non-core operations Insulation & Energy Management SIG Managed as one operating unit Mainland EuropeUK & Ireland Interiors Exteriors Insulation & Energy Management Interiors Exteriors Scaffolding Interiors Manufacturing Safety & Workwear Divested Managed as one operating unit 22

Benefits of new structure  SIG now has a clear strategic focus on its three core markets of insulation & energy management, interiors and exteriors  Divestments have reduced the Group’s risk profile and upgraded the business portfolio  UK & Ireland structure now consistent with Mainland Europe  Simplified organisation - maximum of 3 business streams and 2 divisions per country  Improve cross-selling opportunities and help drive further synergy savings  Rebranding opportunities 23

Pillars of profit recovery in current low growth environment 24 Outstanding customer service Sales outperformance Gross margin enhancement Technical expertise of employees Availability/range of specialist stock Speed/reliability/ mode of delivery Improved customer communications Focus on core markets Increased cross- selling Expanding branch network/new formats UK national initiatives Increasing residential exposure Bolt-on acquisitions Price management programmes Control of mix Use of better IT systems Improved procurement Operational efficiency £3m savings 2011 £5m identified 2012 Further site sharing Leveraging UK network Continuous improvement programme 2012 cost inflation c.2% Investment in growth Focus on financial returns Maintain focus on cash conversion & working capital Target annual RoS improvement in all businesses Target annual ROCE improvement

Recent trading and outlook  Following recent initiatives SIG enters the year as a leaner, stronger and more focused organisation  Sales per day in constant currency so far this year c.1% ahead of strong comparators - despite severe weather across Mainland Europe in February  Current uncertainties in the macroeconomic environment persist  Consequently the Group continues to expect market volumes to be slightly down overall in 2012  Group has a solid platform on which to build and is targeting further market outperformance  New branches expected to make a significant contribution to growth 25

26 Summary Organic growth strategy working well Increased focus on core markets Outperforming markets and delivering further efficiencies Reinstated dividend Good delivery on key objectives in 2011

Appendices

28 Strong balance sheet * On a total basis including divested businesses, excludes defined benefit pension liability and contingent consideration. ** Based on covenant calculation. £m Net Capex Depreciation Capex / Depreciation0.53x0.33x Net working capital* Net debt Net debt / EBITDA ratio**0.9x1.6x Interest cover**7.2x5.8x  Net debt reduced by £69m compared to 31 December 2010  Improving leverage and interest cover

Divested businesses £m 2011 (to date of disposal) 2010 (full year) Revenue Gross profit Gross margin37.9%37.8% Underlying operating profit / (loss)0.3(1.7)  Divested businesses were SIG’s Interiors Manufacturing, Safety & Workwear and Scaffolding; all based in the UK 29

Other items £m Amortisation of acquired intangibles Impairment charges Net loss on sale of businesses22.7- Operating (profit) / loss attributable to businesses divested in 2011 (0.3)1.7 Restructuring costs* Losses on derivative financial instruments Total * Expected annualised cost savings of £5m

31 Markets supplied by SIG Source: Company estimates. RMI: Repairs, Maintenance and Improvement Industry (non-construction) Residential Non-residential 38% 62% New Build RMI 48% 52% 51% 49%

32 SIG Sales sector split 2011 Insulation and Building Environments (2010: 45%) Interiors (2010: 23%) Exteriors (2010: 32%)

Return on capital employed ROCE calculated on a post-tax basis as: Underlying operating profit less tax Average net assets plus average net debt 33

34 Operating cost movement 2010 v 2011 Investment in organic growth £m (3.0) 0.4 NB: Underlying operating costs from continuing operations

Trading sites movement 31 Dec 2010 Closed/ merged OpenedTransferDisposed 31 Dec 2011 UK350(17)4-(19)318 Ireland14(2)---12 UK & Ireland364(19) France Germany & Austria Benelux*28(1)1 -27 Poland63(4)1--60 Central Europe30(8)1--23 Mainland Europe384(13) Group Total748(32)18-(19)715 *Includes international air handling business, headquartered in the Netherlands. 35