1. The slides could be incomplete without the oral commentary.
The attached slides were used at the Analyst Presentation by John Hirst and Andrew Fisher on the 19th March 2003.
The slides could be incomplete without the oral commentary.
Others with many years experience have said the worst for 30 years! Plus cycle/inventory correction. Simultaneous economic demand slow down!

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

3. Connecting with our Customers
Premier Farnell plc
Connecting with our Customers

4. Preliminary Results AGENDA
For the financial year ended 2nd February 2003
AGENDA
Introduction - John Hirst, Group Chief Executive
Financial Results - Andrew Fisher, Group Finance Director
Strategy and Progress - John Hirst
Questions

5. Perspective Where we were 12 months ago (18th March 2002)
Unprecedented electronics slowdown- worst for 30 years
Economic slowdown
11th September
External view on markets more optimistic - pace and timing uncertain
Counting on little help from the market

6. Action we took Mitigate downturn and win share How it worked out
Early cost reduction; then tight control maintained
Determined progress on key initiatives
Focus on customers and customer service
How it worked out
False dawn in Spring optimism evaporated - all countries
Markets remained flat/soft for the rest of year, except Asia

7. For the financial year ended 2nd February 2003
Preliminary results
For the financial year ended 2nd February 2003

8. Andrew Fisher
Group Finance Director

9. Financial Summary 52 weeks ended 2nd February 2003
Sales £759.0m - up 1.2%
Operating profit £82.9m - operating margin 10.9% (before goodwill amortisation)
Tight working capital controls
Cash flow, financial gearing and EPS benefits from preference share conversion
Net debt at £209.2m - interest cover 5.3 times
Dividend maintained at 9.0p

10. Financial Summary
* Continuing businesses year on year sales per day growth at constant exchange rates

11. Q4 Group Result
† Adjusted to eliminate 53rd week (s: £16.8m, op: £1.7m) and impact of exchange rates (s: £9.1m, op: £0.8m)
* Continuing businesses year on year sales per day growth at constant exchange rates

12. Financial Summary Group
Second half sales progression
* Continuing businesses at constant exchange rates
† Gross margin is measured after net cost of freight, packaging, discounts and inventory adjustments

13. Financial Summary Group
Stable operating margin: robust gross margins and tight cost management
* Continuing businesses at constant exchange rates
† Gross margin is measured after net cost of freight, packaging, discounts and inventory adjustments

14. MDD
Americas Sales Per Day $m
2000/1
2001/2
2002/3

15. MDD
Americas Sales Per Day $m
2000/1
2001/2
2002/3

16. Americas SPD and year on year growth rates
MDD
Americas SPD and year on year growth rates
Underlying sales run rate stable $m
2000/1
2001/2
2002/3

17. Year on year sales growth in second half
MDD
Europe & Asia Pacific SPD and year on year growth rates (excluding Buck & Hickman)
Year on year sales growth in second half
20% £k
10% 0%
-10%
-20%
2000/1
2001/2
2002/3

18. UK SPD and year on year growth rates (excluding Buck & Hickman)
MDD
UK SPD and year on year growth rates (excluding Buck & Hickman)
Year on year sales growth in second half
20% £k
10% 0%
-10%
-20%
2000/1
2001/2
2002/3

19. Buck & Hickman SPD and year on year growth rates
MDD
Buck & Hickman SPD and year on year growth rates
Rapid development of sales
20%
10% £k 0%
-10%
-20%
2000/1
2001/2
2002/3

20. Mainland European SPD and year on year growth rates
MDD
Mainland European SPD and year on year growth rates
Year on year sales growth in second half £k
2000/1
2001/2
2002/3

21. Asia Pacific SPD and year on year growth rates
MDD
Asia Pacific SPD and year on year growth rates £k
2000/1
2001/2
2002/3

22. E-commerce SPD £k
2000/1
2001/2
2002/3

23. Continuing businesses
Industrial Products Division
Continuing businesses
£m / /2
Full year Q Full year
Turnover
Year on year SPD growth* % %
Operating profit
Operating margin % % %
* Continuing businesses year on year sales per day growth at constant exchange rates

24. Profit and loss account
£m / /2
Operating profit*
Interest (15.7) (15.9)
Exceptional item (4.8) (11.0)
Profit before tax
Tax (18.2) (21.4)
Profit after tax
Preference dividend (10.8) (26.1)
Attributable to ordinary shareholders
Adjusted EPS † p p
* Includes goodwill amortisation
† Excluding amortisation of goodwill and disposals

25. Taxation £m 2002/3 2001/2 Underlying charge 29.9% 20.1 30.5% 22.1
Credits relating to prior year (1.0) (0.7)
Disposals (0.9)
Tax rates calculated on profit before tax and goodwill amortisation and disposal of business

26. Summarised cash flows £m 2002/3 2001/2 Operating profit 80.3 86.9
Depreciation (net of gains on disposals)
Amortisation of goodwill
Net pension credit (6.8) (6.7)
Working capital
Operating cash flow
111% %
Net capital expenditure (23.2) (23.5)
Interest & preference dividend (26.6) (41.7)
Tax (12.7) (27.4)
Free cash flow

27. Strong collection performance and credit controls
Debtor days
Strong collection performance and credit controls
Days
2001/2
2002/3

28. Inventory £m 2001/2 2002/3 Belgium warehouse
At 2002/3 year end exchange rates

29. Capital expenditure £m 2002/3 Front office systems 10.8 IT 7.7
Other
Total
Sale of fixed assets (1.7)
Net capital expenditure

30. Movement in net debt £m Full year Opening net debt (236.4)
Free cash flow
Ordinary dividends (28.1)
1.4
Disposal of business
Capital reorganisation (9.2)
Issue of ordinary shares
Cash outflow (3.8)
Translation
Closing net debt (209.2)
US$ Senior Notes due 2003 & (189.0)
Net borrowings and other loans (20.2)
(209.2)

31. Debt profile
Gross debt at 2 February 2003

32. Exchange Rates Translation impact Transaction impact
US $, 1 cent ~ £0.2 m profit (2002/3 average rate $1.53)
Euro, 1 cent ~ £0.1 m profit (2002/3 average rate €1.58)
Translation impact
Transaction impact
Euro, 1 cent ~ £0.15 m profit

33. Pensions - Defined Benefit Schemes

34. Summary Year on year and sequential sales growth
Robust gross and operating margins
Strong free cash flow
Strong balance sheet
Sound pension funding

35. Preliminary Results JOHN HIRST Group Chief Executive
For the financial year ended 2nd February 2003
JOHN HIRST
Group Chief Executive

36. Consistent themes over the last 2 years
Leadership - ‘Strengthening the bench’
Group COO, Global Account Director, VP Marketing (NA), VP Strategy (NA), Group Director Strategic Marketing & Planning
Improving the way we do business
Costs, gross margin stability, working capital
Technology - websites, Siebel, Publication Systems, Q20
Enhancing customer service
Service level focus, eProcurement, web, Product Find, Product Watch, vendor managed inventory
Customer, market, segmentation, focused direct mail, telemarketing
Focus on and global approach to key accounts

37. Strategy for Growth
Achieving growth through managing the customer base more
effectively
Sales & Profits Growth
Higher Customer
Spend
New Markets
New Customers

38. MDD - Strategy for Growth
Achieving Growth through 
Sales & Profits Growth
Higher Customer
Spend
New Markets
New Customers
Global and Major Accounts
Customer Service
Product Range
International Expansion
Segmentation
Acquisition
Branding

39. MDD - Strategy for Growth
Achieving Growth through 
Sales & Profits Growth
Higher Customer
Spend
New Markets
New Customers
Global and Major Accounts
Customer Service
Product Range
International Expansion
Segmentation
Acquisition
Branding

40. MDD - Strategy for Growth
Achieving Growth through 
Sales & Profits Growth
Higher Customer
Spend
New Markets
New Customers
Product Range
International Expansion
Segmentation
Acquisition
Global and Major Accounts
Customer Service
Branding

41. MDD - Progress despite conditions
Product Range
46k Products added in MDD last year
More this year
Newark & Farnell Direct
Product Find (NIC)
International Expansion
Italy / Austria / Mexico / China
Product Range, International Expansion

42. MDD - Progress despite conditions
Segmentation
Europe and Americas Regional Initiatives
Education
Health and Safety
Design and Maintenance Engineers
Government
Global
Major Accounts
eProcurement Early Adopters
Segmentation, Acquisition

43. MDD - eCommerce -Americas£k
Americas - sales up 8.5% YoY
eProcurement sales up 52%
43 new eProcurement partnerships
42 underway

44. MDD - eCommerce - Europe and Asia Pacific£k
Farnell - sales up 82%
CPC web sales up 240%
65 new eProcurement partnerships
36 underway

45. MDD - Progress despite conditions
Acquisition
Acquired small German Distribution business
Buck & Hickman
Q4 sales YoY up 16%
Contract wins in collaboration with Farnell and CPC
VMI - valuable tool
Vauxhall / Rolls-Royce - major successes
Segmentation, Acquisition

46. MDD - Progress despite conditions
Major Account success
US Government +12% YoY despite budget approval delay
Large potential
Americas - National accounts up 3% YoY
37 Wins in year
7 Americas
19 UK
11 Mainland Europe and Asia
Global & Major Accounts, Customer Service

47. MDD - Progress despite conditions
Major Account - Reasons for success
Wide product range - reliably and swiftly available
eProcurement flexibility - improved productivity
Vendor managed inventory solutions - cost reduction
Vendor reduction
Focused approach - more difficult for competitors
Global & Major Accounts, Customer Service

48. MDD - Progress despite conditions
Customer Service
Vendor Managed Inventory
Americas Stockrooms
Europe and Asia Pacific Stockrooms
Product Find on Website in US and 6 million products in UK
Product Watch introduced in Europe and Asia Pacific
Logistics
Chicago closed - Liege opened
Gaffney - ISO 14001
Global & Major Account, Customer Service

49. MDD - Progress despite conditions
Rebranding Strategy - InOne
Major investment programme substantially complete
Customer and segment understanding progressing fast
Wide range of services developed and available across MDD
Businesses working together across boundaries
Customer access to millions of products, thousands of suppliers worldwide
Now is the time to re-brand - tell the market again of our improvements and capabilities
Retain existing brand equity
Branding

50. If we take a closer look at the InOne family you can see:
The concept of the suffix - how well the name InOne works in that way - brings something new and different but retains the current brand name.
MCM has some way to go to build some of the capabilities the new brand represents - so it is endorsed
The colours were carefully selected - to fit with the new image overall and fit with local management views. They also work well together.
We repeat the same visual identity and brand positioning in every way we touch our customers and suppliers
Let’s have a look at some of that work in more detail …

51. Newark Many positives Marketing Initiatives Major account sales
Government Services Agreement (GSA)
eProcurement, Web, Stockroom successes
Marketing Initiatives
Brand change
Siebel in March
New products in 2003 to segments - including doubled passives range
Direct Mail expansion

52. Industrial Products Division
Akron Brass
Excellent performance
Sales ahead in declining market
International sales progress
TPC
New product sales 16% of total
Expanding in Mexico and Canada
New segments
Kent
Sales force restructured
New products introduced
Productivity improving

53. Outlook No discernible change in market conditions in immediate term
Accelerated efforts to gain share
Strong position further enhanced for market turn

54. Summary Positioning the business in difficult markets
More robust through the cycle
Tight control of costs
Gross margins maintained
Enhanced offering to customers - driving key initiatives
Key accounts, eCommerce and VMI successes
Market share gains
Capital structure enhanced
Acquisitions add range, opportunities and value
Buck & Hickman strong growth
Strong position further enhanced for market turn

55. Connecting with our Customers
Premier Farnell plc
Connecting with our Customers