1. ANNOUNCEMENT OF PRELIMINARY RESULTS YEAR ENDED 31 MARCH 2006 1 June 2006

2. BOB LAWSON CHAIRMAN

3. AGENDA Welcome Bob Lawson Current trading
Progress on strategy delivery
Regional overview
Financial performance
Bob Lawson
Ian Mason
Simon Boddie

4. CURRENT TRADING
Since the year end, Group revenue growth has remained strong at around 9%. The International business has grown by around 15% and the UK business has been flat. As planned, gross margins are lower than the equivalent period last year, largely due to actions taken to improve competitiveness

5. IAN MASON GROUP CHIEF EXECUTIVE

6. STRATEGY ANNOUNCED IN MAY 20051
Focus separately on two distinct customer groups
Electronic and electromechanical (EEM)
Maintenance, repair and operations (MRO) 2
Implement the Enterprise Business System (EBS) 3
Create a lower cost infrastructure
An update on developments, one year into the three year plan

7. EEM STRATEGY PROGRESS Extended product range performed well
Allied products available in Europe
Launched new leading edge technologies
Wireless and Displays
Aligned offer with customer needs
new packaging options
enhanced search and presentation
Planned strategy actions
all EEM products available worldwide
massively increase EEM product range
further improve customer service

8. EBS IMPLEMENTATION PROGRESS
Successful UK implementation over Christmas 2005
UK, International supply and Group processes
over 1 million customer orders so far!
European roll out underway and planned to be largely complete in 2006/07
accelerated roll out of established template
learning and confidence from France and UK implementations
Asia Pacific EBS roll out will be complete with China implementation in 2006/07
EBS provides the essential systems platforms to support strategy delivery
focus on benefits delivery

9. LOWER COST INFRASTRUCTURE
Sales growth to drive economies of scale
high fixed cost infrastructure
good cost leverage in International businesses
Cost reduction initiatives identified to achieve £10m target over 3 years
£4.4m of annualised cost reduction achieved
includes removal of c.110 roles
one-off reorganisation costs of £3.7m
further actions planned in 2006/07 including EBS enabled benefits
Costs being systematically redeployed to front end sales and marketing

10. BUSINESS PORTFOLIO Contribution Revenue % of Group % of revenue Europe
£268m
32%
22.4% US
£138m
17%
14.0%
Asia Pacific
£69m 8%
10.4%
International
£475m
57%
18.2% UK
£354m
43%
27.4%
Group
£829m
100%
22.1%

11. INTERNATIONAL Revenue growth full year : 12% second half : 15%
current trading : 15%
Improvements in all regions
Gross margin reduction
Good operating cost leverage
Contribution increased by £9m

12. EUROPE Revenue growth full year : 8% second half : 11%
current trading : 12%
Improvements throughout Europe
especially France, Germany and Italy
EEM strategy implementation
extended range sales growth
realigning marketing spend to EEM
‘halo’ effect on existing products
Successful MRO trial in Germany
Addressing key customer barriers
price perception
flexibility

13. GROSS MARGIN POSITION
Targeted price reductions and increased discount flexibility to improve the competitiveness
maintained overall price position and fixed price catalogue
continued to implement and develop market price framework
eg pass on commodity price increases quickly
specific customer and large order discounts delivering growth
Significant net cost price reductions achieved
supplier negotiation and range rationalisation particularly in MRO
ongoing programme of margin recovery
Net impact is a reduction in gross margin
high US growth and product mix have also impacted gross margin
Managing trade-off between gross margin, sales and gross profit
greater focus on increasing gross profit
rate of gross margin decline will slow as competitive position adjusted

14. IMPROVING COMPETITIVENESS
Operating Company
Product Range

15. US Revenue growth full year : 18% second half : 22%
current trading : 22%
Continuation of proven growth strategy
expansion of field sales
55 local branches
expansion of product range
marketing programmes developed with suppliers
improved customer service levels
Gross margin stabilised in H2 at 36%
New warehouse on track for mid 2007

16. ASIA PACIFIC (INCLUDING JAPAN)
Revenue growth
full year : 14%
second half : 16%
current trading : 17%
Strong growth in all regions
N Asia 21%, S Asia 19%, Australasia 12%, Japan 11%
Japan sales growth recovered well in H2
Thailand sales office to open in mid 2006
Solid foundations built across the Asia Pacific region
potential to accelerate growth in China

17. CHINA ACCELERATION RS currently has a leading position in China
Same Day Offer in Shanghai, Beijing and Wuhan
high ‘intangible’ value from official permissions and relationships
Research with RS customers identified they have three primary customer needs
wide range of products
assured delivery
knowledgeable local sellers
Four point plan for meeting these needs and driving growth in China:
product range expansion
increased stock levels to improve delivery service
further sales offices and resource to enhance face to face selling
marketing investment to drive customer acquisition
Additional P&L investment of £1.5m in 2006/07

18. UK Revenue change full year : -3% second half : -2%
current trading : flat
Successful implementation of EBS
Continued manufacturing decline
Increased discount flexibility
strong large order growth
several large account wins
Strong e-Commerce growth and now 28% of sales

19. UK STRATEGY
Objective is to generate a sustainable profit and enable future growth
The objective will be realised through the implementation of the Group strategy
built on core strengths: range, availability, order facilitation and reliable delivery
develop new MRO strategy on behalf of the Group
2 shop fronts leveraged off a common infrastructure
Significant changes to the operational approach to deliver the strategy
rationalisation of MRO offer with increased RS own-brand
greater price and discount flexibility with gross profit focus
migration of business to web and reduce other channel costs
changing role of the salesforce
Cost base will be reduced through targeted initiatives, reducing complexity and EBS benefits
Getting on with implementation

20. PROCESSES Product Management reorganised to align with the strategy
developing EEM and rationalising MRO ranges
effective cost price management IS
aligned structure to post-EBS world
upgraded supporting infrastructure
Supply Chain
good stock and service level control
MPP
continued catalogue and production process cost reduction HR
culture change programme
more customer focused and quicker to act

21. e-COMMERCE Revenue growth: 29% % revenue: Group 25% Asia Pacific 27%
Germany now c.40% e-Commerce
particularly strong e-Procurement growth
e-Commerce is enabling the strategy implementation
allows low cost offer of extended range
allows rapid product introduction,
discontinuation and price change
enables global availability of products
% revenue: Group 25% Asia Pacific 27%
UK 28% (including Japan 53%)
Europe 28% US 8%

22. SIMON BODDIE GROUP FINANCE DIRECTOR

23. Unless otherwise stated
This has been prepared using International Financial Reporting Standards (IFRS)
Changes in revenue are adjusted for exchange rates and the number of trading days
Changes in profit, cash flow, debt and share related measures, such as earnings per share, are at reported exchange rates
In order to make clear the costs of the EBS project and the underlying performance of the business, EBS costs have been disclosed separately. Therefore, unless explicitly stated, measures based on operating costs, contribution and process costs exclude EBS
A charge of £7.7m was incurred in the year for items excluded from headline profit. Key performance measures such as return on sales, EBITDA and ROCE use headline profit figures

24. INCOME STATEMENT 1

25. THE 5 MAIN MOVEMENTS IN PROFIT

26. INTERNATIONAL
Contribution growth: Europe £3.6m, US £3.5m and Asia Pacific £1.7m

27. UK

28. Profit and loss account
EBS
Profit and loss account
Cash flow
(£m)
2005/06
Change
Depreciation
(6.8)
(1.2)
(25.1)
(15.9)
Project and support
(12.4)
(10.5)
6.8
1.2
Local business costs
(5.9)
(4.2)
Stock
(7.0)
Capital expenditure
(12.7)
0.3
Cash flow impact
(38.0)
(21.4)
2006/07
Estimated
low 20’s
c(20)
capex similar to 2005/06
half of 2005/06 stock unwinds due to European roll out

29. GROUPWIDE PROCESS COSTS
One-off IS costs: groupwide technology upgrade, IS restructuring

30. INCOME STATEMENT 2

31. RoHS: THE IMPACT Takes effect from 1 July 2006 for products
used in production
70,000 RoHS compliant products currently
available in Europe
RS among the first to achieve BSI RoHS
trusted kitemark (in UK and Benelux)
Limited examples of dual stocking where
customer demand for compliant stock is
particularly strong
Additional provision of £4m made in 2005/06

32. CASH FLOW 1

33. WORKING CAPITAL (£m) 2005/06 2004/05 Stock (12.8) (13.6)
Stock turn maintained at 2.5 times despite EBS stock £7m
Debtors
(14.6)
9.3
Higher sales and timing of Easter
Creditors
13.2
(3.7)
Higher purchases and accruals (eg reorganisation costs)
Movement in working capital
(14.2)
(8.0)

34. CAPITAL EXPENDITURE (£m) 2005/06 2004/05 EBS 12.7 13.0
Other computer systems
4.0
5.5
Other
8.4
5.3
Net capital expenditure
25.1
23.8
Net capex / depreciation
1.0x
1.1x
2006/07 outlook
£40m+ : European EBS roll out and US warehouse

35. CASH FLOW 2 (£m) 2005/06 2004/05 Free cash flow 26.9 61.1
2004/05
Free cash flow
26.9
61.1
Dividends paid
(80.0)
Cash outflow
(53.1)
(18.9)
Exchange differences
(7.2)
(2.0)
New finance lease liabilities
(5.1) -
Increase in net debt
(65.4)
(20.9)
Net debt
(120.8)
(55.4)
Pension deficit (net of deferred tax)
(29.7)
(32.4)
Financial ratios remain strong with high interest cover

36. PENSIONS UPDATE Defined benefit schemes in UK, Ireland and Germany
all closed to new entrants
all other schemes are defined contribution
Under IAS 19, combined gross deficit of £41.8m at 31 March 2006
of which UK £35.0m
UK deficit lower than last year
improving bond yields greater than impact of people living longer

37. IMPROVING PERFORMANCE
To substantially improve the Group’s medium term financial performance
need to grow profit and cash in 2006/07
Plans in place and management committed to deliver
International growth and cost leverage
sustainable profit and enable future growth in the UK
lower cost infrastructure enabled by EBS
improved cash delivery to restore a covered dividend

38. SAFE HARBOUR STATEMENT
This presentation contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Electrocomponents plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. 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. Although Electrocomponents plc believes that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors, which may be beyond the control of Electrocomponents plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be listed, Electrocomponents plc has no intention or obligation to update forward-looking statements contained herein.

39. QUESTIONS

40. APPENDIX

41. CONTINENTAL EUROPE (£m) 2005/06 2004/05 Change Revenue 267.9 243.5
8.3%
Contribution
59.9
56.3
3.6
% of revenue
22.4%
23.1%
(0.7)% points

42. NORTH AMERICA (£m) 2005/06 2004/05 Change Revenue 137.5 112.8 18.0%
Contribution
19.2
15.7
3.5
% of revenue
14.0%
13.9%
0.1% points

43. ASIA PACIFIC (INCLUDING JAPAN)
(£m)
2005/06
2004/05
Change
Revenue
69.5
58.8
14.5%
Contribution
7.2
5.5
1.7
% of revenue
10.4%
9.4%
1.0% points

44. JAPAN (£m) 2005/06 2004/05 Change Revenue 18.6 17.0 11.2% Contribution
1.8
1.5
0.3
% of revenue
9.7%
8.8%
0.9% points

45. ASIA PACIFIC (EXCLUDING JAPAN)
(£m)
2005/06
2004/05
Change
Revenue
50.9
41.8
15.8%
Contribution
5.4
4.0
1.4
% of revenue
10.6%
9.6%
1.0% points