PRELIMINARY RESULTS

Year ended 31 March 2010

2 June 2010

2

Agenda

Introduction Richard Moon

Operational review Nick Jefferies

Financial review Paul Neville

Strategy and current trading Nick Jefferies

3

A year of change and progress

Trading improves with return to profitability and growth in order book

Acquisition of BFi Optilas completed and will achieve > £4.4m p.a. (€5m) operational savings

Specialisation strategy progressively implemented across Electronics division and repositions the Group

Supply Chain stable following acquisition of SSE

Strong net cash position of £13.9m at end of March 2010

Maintained full year dividend of 7.0p (final 4.67p)

4

Agenda

Introduction Richard Moon

Operational review Nick Jefferies

Financial review Paul Neville

Strategy and current trading Nick Jefferies

5

Highlights

Second half much better than first half, return to profitability

Improving sales trends

Significant operational improvements

Positive operating cash flow, strong net cash position

BFi Optilas trading profitably from day one, integration proceeding well

Specialisation strategy making good progress

Continued trading improvement since the year end

6

Improved operating performance

H1 2009 H2 2009 H1 2010 H2 2010

Op Profit /Loss £m Sales £m

0.7

Return to profitability in second halfRecovery in volumes – 11% sequential (excluding BFi)

Benefit of cost savings made in H1

Return to year on year growthGroup Orders increased 16% in March

Group Sales increased 6% in March

Customer order pipeline up 22% (Electronics)

BFi Optilas included for 4 monthsProfitable from day one (£0.7m)Sales of £30.5m

Increasing sales, combined with decisive action to reduce operating expenses and working capital and increased gross margins, returns Group to profitability. Enhanced by BFi acquisition.

7

Improved gross margins

Gross margin increased 1.1% points year-on-year

Underlying margin stable in second half

BFi enhances Group gross margin by c.0.2%c.0.4% annualised

Specialisation strategy focuses on higher margin products

8

Reduced operating expenses

£m Operating expenses reduced by 12% on comparable basis, £5.9m year-on-year

£1.1m associated exceptional cost

H2 operating expenses maintained at H1 level despite increased volumes

Further cost reductions underway in Supply Chain

BFi expenses of £8m for the 4 months13% reduction year-on-year

Note: Operating Expenses (adjusted) are at constant exchange rates and include SSE for comparable periods

9

BFi Optilas integration proceeding to plan

Mid way through integrationPlan to complete by March 2011On track to achieve synergies p.a. > £4.4m (€5m), c.10% of combined cost base

Maintaining separate trading divisionsAcal Technology and BFi OptilasCommon warehouses, IT, F&A

Opportunities for additional revenueSelective cross selling of product offerIncreased attractiveness to new suppliers

Includes BFi on a like for like basis

10

Lower working capital

Working capital reduced by £10.1m, 38% since 31 March ’09

Reduced to 12.7% as a percentage of sales (including acquisitions)

Operating cash flow before exceptional and pension payments positive £9.5m

Specialisation strategy reduces requirements for uncommitted inventory

Working capital defined as net inventory, trade debtors plus other receivables less trade payables and other payable

£m

11

Agenda

Introduction Richard Moon

Operational review Nick Jefferies

Financial review Paul Neville

Strategy and current trading Nick Jefferies

12

Profit and Loss Account

£m H1 FY10 H2 FY10 FY 10 FY09 Change

Revenue- Existing- Acquisition – BFi

71.5

71.5

79.630.5

110.1

151.130.5

181.6

165.4

165.4

-8.6%

+9.8%

Gross Margin 27.4% 27.6% 27.6% 26.5% +1.1%

Operating (loss) / profit (adjusted) (1.7) 1.2 (0.5) 0.4

Exceptional items (0.4) (4.3) (4.7) (33.1)

Finance (cost)/income (excluding IAS19) (0.2) - (0.2) 0.5

(Loss) / profit before tax (adjusted) (1.9) 1.2 (0.7) 0.8

Loss before tax (2.7) (3.6) (6.3) (32.6)

Taxation (0.1) (0.2) (0.3) (4.4)

Basic loss per share excluding exceptional items (9.5p) 1.3p (8.2p) (3.8p)

Dividends per share relating to period 2.33p 4.67p 7.0p 7.0p

Operating performance (H2)

- Sales improvement (+11%)- Gross margin improvement (+0.2pts)- Operating expense reduction

Interest charge- H2 reduced to zero

Tax charge- Small charge reflects profits in UK and

unrelieved losses in mainland Europe. - £24m losses to c/fwd

EPS H2 to profit of 1.3p per share reducing loss for year to 8.2p per share

Dividend maintained at 7p per share

13

Divisional results - sales

£m H1 FY10

H2 FY10 FY10 FY09

AbsoluteChange

UnderlyingChange

Electronics (Acal) 39.4 42.5 81.9 103.7 -21.0% -23.5%

BFi 30.5 30.5

Electronics Total 39.4 73.0 112.4 103.7

Supply Chain 29.2 32.8 62.0 54.2 14.4% -5.6%

Medical 2.9 4.3 7.2 7.5 -4.0% -7.7%

Revenue (reported)

Revenue (exc. BFi)H2 on H1 increase

71.5

71.5

110.1

79.6

11.3%

181.6

151.1

165.4

165.4

9.8%

-8.6% -16.3%

H2 on H1 sales increase excl BFi of 11.3%- Electronics 8% excl BFi- Supply Chain 12%- Medical 48%

Year on year underlying decline 16.3%Absolute decline 8.6%

FX impact 2.5%

SSE acq’n in Jan 09 5.2%

Underlying decline 16.3%

Underlying revenue reflects:Electronics- Market decline 16%- Loss of Linear Tech franchise 8%

Supply Chain 6%Medical 8%

14

Divisional results – adjusted operating profit

£m H1 FY10 H2 FY10 FY10 FY09

Electronics (Acal) (1.5) 0.6 (0.9) 0.9

BFi 0.7 0.7

Electronics Total (1.5) 1.3 (0.2) 0.9

Supply Chain 0.6 0.6 1.2 1.1

Medical 0.3 0.5 0.8 1.0

Unallocated costs (1.1) (1.2) (2.3) (2.6)

Adjusted operating (loss)/ profit (1.7) 1.2 (0.5) 0.4

H2 operating profit of £1.2m reduces full year operating loss to £0.5m

- All divisions profitable in H2

Electronics profit in H2 of £1.3m includes £0.7m BFi for 4 months

- Sales in H2 increased 8% on H1- Opex reduced during year by £4.7m (18%)

Supply Chain profit up £0.1m

- Underlying sales 6% down after adj for SSE acquisition in prior year

Medical H2 improvement on H1 but delayed NHS expenditure gives lower full year result than prior year

Adjusted operating profit – operating profit before share-based payments, amortisation of intangible assets and exceptional items

15

Exceptional operating items

£m FY 2010

FY2009

Integration restructuring costs 2.4 -

Other restructuring costs 1.9 2.6

Goodwill impairment 0.3 41.8

Sale of investment in MessageLabs 0.1 (15.9)

Other - (0.8)

Operating exceptionals 4.7 27.7

Integration restructuring costs primarily relate to provision for closure of Netherlands warehouse and other office closures as well as certain termination costs

-Total synergy savings forecast p.a. > £4.4m (€5m)

Other restructuring costs relate to;- Expense reductions £1.1m- Director terminations /other £0.8m

Goodwill relates to impairment of ATM Parts Company Ltd in Supply Chain division

16

Balance sheet

£m 31 March2010

31 March 2009

Var

Prop, plant & equip 3.9 4.7 (0.8)

Intangible assets 16.5 15.0 1.5

Working capital 30.8 26.7 4.1

Tax (including deferred) (0.2) (2.6) 2.4

Provisions (7.5) (4.0) (3.5)

Pensions (5.5) (5.7) 0.2

Net cash 13.9 24.5 (10.6)

Net assets 51.9 58.6 (6.7)

Movements in net assets: £’m

Loss after tax (6.6)

Translation differences (0.6)

IAS 19 / LTIP (0.2)

Purchase of MI (0.4)

New share capital 2.7

Dividends (1.6)

(6.7)

• Balance sheet reflects BFi acquisition and maintains strong net cash balance of £13.9m

• Working capital – underlying reduction (31 March 2010 includes £14m for BFi)

• Provisions include certain synergy provisions for exceptional costs

17

Pension Update

IAS 19 pension liability £5.5 million (31 March 09: £5.7 million)

Update on Fund Actuarial Valuation

Triennial actuarial valuation at Dec 2009 agreed at £11.2m deficit (previous estimate £15m)

New funding from 1 April 2010

- for two years at reduced 50% rate of £0.65m from 1 April 2010

- followed by further 10 years starting at £1.5m indexed by 3% p.a. to £2.0m for y/e 2022

18

Working capital balances

Working capital- Underlying reduction of £8.6m (32%)

Inventories

- £8.0m (32%) reduction since 31 March 09

- Electronics reduced by 48% since 1 Jan 09

- Turns increased from 5.3 to 7.5

Receivables- Group Days Sales Outstanding maintained at 51 days

-Excluding BFi reduced by 5 days to 46 days

Working Capital as % of sales

Working capital as % of sales- Including BFi annualised is12.7% due to larger European debtors

19

Movement in net cash

£mFY10

Underlying FY10 FY09

Operational cash flow 5.2 8.2 (2.4)

Capital expenditure less disposals 0.3 (0.8) (1.2)

Proceeds from sale of investments 1.0 - 15.1

Acquisitions (11.7) - (4.4)

Interest (net)/associate dividends (0.2) (0.2) 0.8

Dividends paid (1.6) (2.0) (4.8)

Tax (3.1) (0.7) (3.4)

Net cash flow (10.1) 4.5 (0.3)

Exchange /other 0.5 (0.8)

Debt acquired (1.0) -

Net cash movement (10.6) (1.1)

Opening cash 24.5 25.8

Net cash at 31 March 13.9 24.5

Underlying net cash flow before exceptionals positive of £4.5m

20

Financial highlights

Strong net cash position at £13.9m

Operating cash inflow before pension and exceptionals of £9.5m

Underling net cash inflow of £4.5m

Working capital reduced giving significantly improved KPI’s

Triennial pension deficit valuation and funding resolved satisfactorily

21

Agenda

Introduction Richard Moon

Operational review Nick Jefferies

Financial review Paul Neville

Strategy and current trading Nick Jefferies

22

Strategy – Building Europe’s leading specialist electronics distributor

Competitive landscapeHigh Volume,Low Gross Margin

Global High ServiceRS, Farnell

Digikey

Global High VolumeArrowAvnetFuture

European SpecialistAcal / BFi Optilas

Low Volume,High Gross Margin

GM<10%

GM 30%

GM 50+%

Group Strategy

1. Specialised distributionDifferentiated, market niches

2. Higher marginsAvoids commodities

3. EuropeanInfrastructure scale

4. Organic and acquisitive growthComplementary Electronics

DifferentiatorsOperate in market nichesProduct rangeCustom value addTechnical knowledge of staff

General components Specialist components & systems

23

Operating in multiple niche markets

Magnetics & Power

Custom power solutions

EMI Shielding

Magnetic Components

Thermal Interface

Communication

RF & MW Components

Fibreoptic components

Wireless Modules

Imaging

IR Thermal Imagers

High Speed cameras

Modules

Software

Electromechanical

Cabling and assemblies

Advanced Connectors

Photonics

Lasers & DiodesOptics & Optical-MechanicsLaser Beam AnalysisScanners & ModulationSpectroscopyPhotometry

Speciality Semiconductors

Reprogrammable FPGAs

Solid state storage

Microcontrollers

Microsystems

Single board computers

Server blades

I/O boards

Sensors

Sensors & Transducers

Accelerometers

Rotary Signal Transmitters

24

Group profile has changed significantly with the acquisition of BFi Optilas

Before BFi With BFi

Electronics division accounts for 72% of Group sales

Increasing further since year end

Electronics maintains separate trading divisionsAcal TechnologyBFi OptilasOperating on one infrastructure

Six month sales Oct 09 to March 10

25

Electronics – Balanced geographic profile

With BFiBefore BFi

Common Group strategyDirection & objectivesEuropean business unitsLocal implementation

Six month sales Oct 09 to March 10

26

Strategy implementation – making progress one year on

The Electronics strategy is:

Increasing specialist product sales 55% 57% 78%(as a proportion of total)

Balancing product mix 33% 29% 21%(proportion of largest product group)

Building sales outside UK 54% 57% 70%

Increasing gross margin 26.5% 27.4% 27.8%(Group gross margin including Electronics)

Acal last yearYr ended Mar 09

Acal nowYr ended Mar 10

Acal+ BFi* nowYr ended Mar 10

* BFi included pro rata for 12 months

27

Electronics returning to growth

Pipeline of customer orders up 22% (at 31 March 2010)

Low point June 2009 (including acquisitions)

Further increase since year end

Growth rates will slow as comparator improvesSecond half

Includes acquisitions on a like for like basis

28

Current trading

Continued improvement in Group trading since year end

Sales increased by c.18% (underlying)

Supply Chain exit from major customer contract

Electronics division continues to improveSales increased by c.20%Continued strong customer order pipeline

Group underlying trading

Q1 FY10 = April + May 2009, Q1 FY11 = April + May 2010

Includes BFi on a like for like basis

29

Summary

Specialisation strategy creates clear competitive position by focusing on multiple niche markets

Implementation of strategy making good progress

Acquisition of BFi brings clear benefits, integration proceeding to plan

Improving sales trends and growing order book

Continued trading improvements since the year end

30

Appendices

31

Cost reductions

Overheads - £mFY10

FY 09 Underlying

(Reduction)/increase

VarianceExchange

VarianceOther

FY09Reported

Electronics excl BFi 21.9 26.6 (4.7) (1.0) - 25.6

Electronics incl BFi 29.9

Supply Chain 16.5 17.7 (1.2) (0.1) (3.8) 13.8

Medical 1.9 1.6 0.3 (0.1) - 1.5

Head Office 2.3 2.6 (0.3) - - 2.6

Total including BFi 50.6

Total excluding BFi 42.6 48.5 (5.9) (1.2) (3.8) 43.5

• Group savings of £5.9m (at constant exchange with comparable SSE), primarily in Electronics and Supply Chain

- Electronics 18% reduction, Supply Chain 7% reduction

• Further reductions in FY11 for synergies and Supply Chain restructuring

32

Operating cash flow

£m FY10 FY09

Operating loss before exceptionals (0.8) 0.3

Depreciation and amortisation 1.5 1.9

Working capital 8.6 (0.8)

Movement in provisions /other 0.2 (0.4)

Operating cash flow before pension and exceptionals 9.5 1.0

Pensions (1.3) (1.3)

Exceptional cash flows (3.0) (2.1)

Operating cash flow 5.2 (2.4)

Underlying operating flow before exceptionals and pension payments £9.5m

Operating cash flow positive at £5.2m compared to prior year outflow