The attached slides were used at the Analyst Presentation by John Hirst and Andrew Fisher on the 12t

1

• The attached slides were used at the Analyst
  Presentation by John Hirst and Andrew Fisher on
  the 12th September 2002.
• The slides could be incomplete without the oral
  commentary.

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
Second quarter and half year results

• For the period ended 4th August 2002

4
Agenda

• Andrew Fisher
• Half year financial results
• John Hirst
• Strategic progress
• Performance highlights

5
Over the last 18 months we have seen

• Unprecedented electronics market decline
• Global economic recession
• We responded positively and professionally
• Robust defence of margins
• Tight control of costs and working capital
• Dedicated support of customer service
• Commitment to our strategic development
• The benefits have been
• Resilient financial performance
• Better than market sales - especially in focus
  areas
• A continually improving business

6
During the 1st Half

• Market flat overall
• Continued resilient financial performance
• Business initiatives showing good progress
• Plus
• Significant improvement in capital structure
• EPS enhanced and strategic options created

7
Andrew Fisher

• Group Finance Director

8
Financial Summary26 weeks ended 4th August 2002

• Sales 392.6m - up 1.0
• Operating profit 41.9m - operating margin 10.7
  (before goodwill amortisation)
• No visible improvement in major markets
• Tight cost and working capital controls
• Cash flow, financial gearing, EPS and dividend
  cover benefits from preference share conversion
• Net debt reduced to 213.7m - interest cover 5.4
  times

9
Financial Summary
Year on year sales per day growth at constant
exchange rates
10
Financial SummaryGroup
Continuing businesses at constant exchange rates
Note Gross margin is measured after net cost of
freight, packaging, discounts and inventory
adjustments
11
Financial SummaryGroup
Overall first half sales performance flat
Continuing businesses at constant exchange rates
Note Gross margin is measured after net cost of
freight, packaging, discounts and inventory
adjustments
12
Financial SummaryGroup
Operating margin maintained robust gross
margins and tight cost management
Continuing businesses at constant exchange rates
Note Gross margin is measured after net cost of
freight, packaging, discounts and inventory
adjustments
13
North America Sales Per Day
MDD
m
2000/1
2001/2
1999/0
2002/3
14
North America Sales Per Day
MDD
m
2000/1
2001/2
1999/0
2002/3
15
North America SPD and growth rates
MDD
m
1999/0
2000/1
2001/2
2002/3
16
Europe Asia Pacific SPD and growth
rates(excluding Buck Hickman)
MDD
20
k
0
-20
2000/1
2001/2
1999/0
2002/3
17
UK SPD and growth rates(excluding Buck Hickman)
MDD
20
k
0
-20
2000/1
2001/2
1999/0
2002/3
18
Buck Hickman SPD and growth rates
MDD
20
k
0
-20
2000/1
2001/2
1999/0
2002/3
19
European SPD and growth rates
MDD
40
20
k
0
-20
2000/1
2001/2
1999/0
2002/3
20
Asia Pacific and Rest of World SPD and growth
rates
MDD
40
20
k
0
-20
2000/1
2001/2
1999/0
2002/3
21
E-commerce SPD
k
2000/1
2001/2
2002/3
22
Gross margin progression
All businesses robust through difficult market
conditions
Farnell
Newark
CPC
BH
2000/1
2001/2
2002/3
Note Gross margin is measured after cost of
freight, packaging, discounts and inventory
adjustments
23
Profit and loss accountSecond quarter and first
half to 4th August 2002
24
Exceptional item
25
Taxation
26
Summarised cash flowsSecond quarter and first
half to 4th August 2002

• m 2002/3
• Q2 Q1 H1
• Operating profit 18.9 21.7 40.6
• Depreciation non-cash items 3.5 3.0 6.5
• Working capital 1.0 1.7 2.7
• Operating cash flow 23.4 26.4 49.8
• 119
• Capital expenditure (net)
  (3.9) (4.6) (8.5)
• Interest preference dividend
  (15.0) (0.1) (15.1)
• Tax (4.3) (2.2)
  (6.5)
• Free cash flow 0.2 19.5
  19.7

27
Operating cash flow operating profit
Continued strong cash conversion

2001/2
2002/3
28
Debtor days
Strong performance releasing further cash

2001/2
2002/3
29
Inventory
Stockturn maintained and cash released through
downturn
m
Turns
2001/2
2002/3
30
Capital expenditure

• m 2002/3
• Front office systems 3.4
• IT 3.2
• Other 2.2
• Total 8.8
• Sale of fixed assets (0.3)
• Net capital expenditure 8.5

31
Summarised cash flowsSecond quarter and first
half to 4th August 2002

• m 2002/3
• Q2 Q1 H1
• Operating profit 18.9 21.7 40.6
• Depreciation non-cash items 3.5 3.0 6.5
• Working capital 1.0 1.7 2.7
• Operating cash flow 23.4 26.4 49.8
• 119
• Capital expenditure (net)
  (3.9) (4.6) (8.5)
• Interest preference dividend
  (15.0) (0.1) (15.1)
• Tax (4.3) (2.2)
  (6.5)
• Free cash flow 0.2 19.5
  19.7

32
Movement in net debt

• m First half
• Opening net debt (236.4)
• Free cash flow 19.7
• Ordinary dividends (13.6)
• 6.1
• Disposal of business 3.2
• Capital reorganisation (9.2)
• Issue of ordinary shares 0.5
• Cash inflow 0.6
• Translation 22.1
• Closing net debt (213.7)
• US Senior Notes due 2003 2006
  (197.4)
• Net borrowings and other loans (16.3)
• (213.7)

33

• John Hirst
• Group CEO

34
Market Conditions

• Short improvement in February to March not
  maintained
• However
• Competitive advantage through strategic
  investment in talent, technology and service
• Market share gains - especially in focus segments
• Continuing build of platform for long term
  profitable growth
• and
• Markets are large and there is plenty of scope

35
Progress - facilitating activities at Group

• Continued investment in management and talent
• Major improvement in capital structure
• Conversion of 70 of preference share stock to
  89m ordinary shares
• Additional purchase on market of 644k Preference
  Shares for cancellation
• Fixed charge cover improved
• Significant EPS enhancement - 15
• Cash flow improved by 9m p.a.
• More flexible capital structure opens strategic
  options

36
MDD - Americas

• Key accounts now 12 of total sales
• 5 significant additions this half
• H 1 sales much better than market
• US Government contract showing good progress
• Integrated account management processes
  delivering
• Productivity and service benefits from transfer
  of smaller customers to call centres
• Now 163 stock room solutions in place

37
MDD - Americas

• eProcurement
• 23 eProcurement partnerships this year - now 115
• H 1 eProcurement sales 67 over last year
• 50 potential customers in discussion
• Mexico launched with 3rd Party warehouse
• Continuing service enhancement
• Pulaski warehouse closed
• Working capital improvement

38
MDD - Europe Asia Pacific

• Key accounts
• UK - 21 contracts signed including 12 new
  customers
• Farnell and Buck Hickman working together
• Key segments
• Education - share and sales improvements
• Health and safety
• Service enhancements for Design engineers etc
• Productivity and service benefits from technology
  investment
• Now 169 stock room solutions in place

39
MDD - Europe Asia Pacific

• eCommerce
• Websites rolled out to 10 new countries
• Web sales up 87 YoY
• Continuous enhancement of functionality
• eProcurement
• 79 live partnerships (39 added this year)
• 54 in discussion
• Key influence in major account wins

40
MDD - Europe Asia Pacific

• Geographic expansion
• China offices and stock
• Sales representation in Eastern Europe
• Continuing service enhancement
• Liege operational

41
Progress this year - Industrial Products Division

• Disposal completed - D-A Lubricant
• Akron
• Productivity, service and margin up
• TPC
• Automotive Steel industry
• New product sales
• Excellent operating margins
• Kent
• Sales force methods improved
• Product range increased

42
Summary

• Resilient performance in difficult markets
• Market share gains
• Significant progress on key initiatives
• Major improvement in capital structure with EPS
  and cash improvements
• Gross margins maintained
• Costs and working capital under tight control
• Strong operating cash flow conversion

43
Outlook

• Continue to manage tightly on basis of no
  improvement in market
• No discernable change in major market conditions
• Larger customer wins and market share gains
• Well positioned with particular sales potential
  as markets turn