1. 1

2. 2 Preliminary Results For The Year Ended 31 July 2004 27 September 2004 This presentation contains certain forward-looking statements as defined under US legislation (Section 21E of the Securities Exchange Act of 1934). By their nature, such statements involve uncertainty; as a consequence, actual results and developments may differ from those expressed in or implied by such statements.

3. 3 Charlie Banks Group Chief Executive

4. 4 Operating Highlights Eighth consecutive year of record results with sales above £10 billion UK sales break £2 billion and Canada tops C$1 billion Group organic sales growth of 13.1%, includes 25.8% at Stock and 15.0% at Ferguson, (including benefits of commodity price inflation) Ferguson achieves a 6.8% trading margin, beating its 6.0% target a year ahead of schedule Improvement in trading margin achieved in each of the businesses in the US, UK, France and Italy Restructuring complete in Stock, Brossette and Ferguson Market share gains in key markets

5. 5 Steve Webster Group Finance Director

6. 6 Financial Highlights Sales up 23.2% to £10.1 billion (2003: £8.2 billion) Trading profit up 30.9% to £619.2 million (2003: £472.9 million) Currency translation effect reduces sales by £400.1 million (4.9%) and trading profit by £21.5 million (4.5%) Group trading margin up from 5.8% to 6.1% Pre-tax profit (before goodwill amortisation) up 31.2% to £598.1 million Effective tax rate reduced to 27.1% EPS (before goodwill amortisation) up 32.0% to 74.84 pence Gearing 49.5% (2003: 46.6%) Working capital to sales ratio down from 15.4% to 15.2% of sales Return on gross capital employed 18.4% (2003: 16.7%) Total dividends up 12.3% Strong sales, profit and ROGCE growth

7. 7 Summary of Results

8. 8 Currency Effect Reduces sales by £400.1 million (4.9%) Reduces trading profit by £21.5 million (4.5%) 20042003 Currency Effect US $ Profit & Loss1.75221.5951-9.0% Balance Sheet1.81981.6076-11.7% Euro Profit & Loss1.46351.5039+2.8% Balance Sheet1.51441.4171-6.4% 10% currency movement affects profit before tax by 7.9%

9. 9 Increase in Interest Charge Interest cover 27 times (2003: 26 times)

10. 10 Cash Flow

11. 11 Working Capital Cash Flow Improved working capital to sales ratio from 15.4% to 15.2% of sales

12. 12 Cash Flow Generation

13. 13 Acquisitions Six acquisitions agreed since year end for £143 million will add sales of £205 million in a full year

14. 14 Branch Numbers

15. 15 Balance Sheet

16. 16 Provisions Estimated liability for asbestos litigation is £27.9 million (2003: £26.2 million)

17. 17 Pensions Actuarial review of UK scheme - £6 million additional charge for 2004/05

18. 18 European Distribution

19. 19 NA Plumbing & Heating Distribution

20. 20 US Building Materials Distribution

21. 21 Average Lumber Prices 1995 - 2004 Year to July 2004 price of $378 - up 31.7% (2003: $287)

22. 22 International Accounting Standards Introduce for year ending 31 July 2006 Goodwill Intangibles Property leases Share options Pensions Deferred tax Dividends Introduce for year ending 31 July 2006 Goodwill Intangibles Property leases Share options Pensions Deferred tax Dividends

23. 23 Financial Highlights Summary Sales up more than 20% and profits and earnings up more than 30% Increase in Group’s trading margin Improved working capital to sales ratio Significant increase in ROGCE Strong balance sheet Sales up more than 20% and profits and earnings up more than 30% Increase in Group’s trading margin Improved working capital to sales ratio Significant increase in ROGCE Strong balance sheet

24. 24 Charles Banks Group Chief Executive

25. 25 Operational Review Europe Wolseley UK Strongest economy in Europe Re-branding to Wolseley UK and restructuring to two office locations Sales increased 11.5% to £2.1 billion Organic growth of 6.3% Increase in gross margin Trading margin increased from 7.6% to 7.8% 97 new locations added Distribution centres drive to increased efficiency Completed Brooks acquisition in Ireland to complement Heatmerchants

26. 26 Operational Review Europe Wolseley France French market showing signs of improvement Wolseley France sales up £1.0 billion to £1.6 billion Brossette sales up 6%, with more than 3% organic growth Trading margin back over 6% Branch and management structure and distribution network reorganised PBM performed ahead of expectations with sales and profits up Underlying trading margin higher before absorbing the additional costs of restructuring and branch re-branding programme More scope for synergies

27. 27 Operational Review Europe Rest of Continental Europe Markets in Continental Europe mainly flat Market slow in Austria but business achieves double-digit profit increase Sales up more than 10% in The Netherlands despite slow market Restructuring branches and logistics More diverse product offering for RMI market Italian organic sales growth of more than 9%, trading profit up 30% and trading margin of 5% for the first time Sales and profits up more than 10% in Luxembourg Tobler, in Switzerland, sales ahead and profits up more than 30% Rest of Continental Europe Markets in Continental Europe mainly flat Market slow in Austria but business achieves double-digit profit increase Sales up more than 10% in The Netherlands despite slow market Restructuring branches and logistics More diverse product offering for RMI market Italian organic sales growth of more than 9%, trading profit up 30% and trading margin of 5% for the first time Sales and profits up more than 10% in Luxembourg Tobler, in Switzerland, sales ahead and profits up more than 30%

28. 28 Operational Review North American Plumbing & Heating Outstanding performance with increased market share and strong organic sales and profit growth Benefit of commodity price inflation Residential and remodelling held up well Industrial & commercial soft but commercial likely to improve Benefits of being a single plumbing and heating company evident New Distribution Centre opened in Washington State in November, next one will open in Iowa this financial year Sales up 18% (15% organic) Net margins of 6.8%, beating 6% target a year early 50 new XpressNet branches to be rolled out this year US

29. 29 Operational Review North American Plumbing & Heating Strong performance with increased market share – C$1 billion of sales for first time Strong organic sales growth of 5% Good residential market supported by low interest rates Canada

30. 30 Operational Review US Building Materials Distribution Resilient housing market overall supported by good job opportunities and low interest rates NOVA re-engineering project complete Consolidated purchasing, payables and credit across districts Cost saving of more than $5 million achieved in 2004 Deeper focus on customer segments, reducing reliance on new housing, and expanding value-added products Helped by higher lumber and structural panel prices although expect these to trend down Synergies with Ferguson on indirect spend and market initiatives Further improvement in sales and margins to come

31. 31 Corporate Review Common IT platform (SWIFT project) Design and development Common financials implemented in 18 months Pilots being developed and branch warehouse management system being tested People European graduate recruitment European team Learning centres Sourcing and procurement Sarbanes-Oxley

32. 32 Outlook Good start to year UK RMI market will continue to drive growth and should be some benefit from government spending France improving and although Continental Europe is expected to remain flat, companies expected to show profitable growth US housing demand expected to remain strong and commercial sector may improve. RMI market positive Upward trend in US Building Materials should continue Environment in Canada remains positive Some uncertainty relating to commodity pricing and exchange rates Optimistic about future Committed to double digit sales and profits growth target

33. 33 Appendices

34. 34 NA Plumbing and Heating Hawaii Alaska Ferguson, FNW and Westburne US 2004 - 773 Branches 8-9% overall market share Wolseley Canada (formerly Westburne) 2004 - 235 Branches 27% market share Distribution Centre Proposed Distribution Centre

35. 35 Stock Building Supply 2004-236 Branches 2-3% market share US Building Materials

36. 36 Wolseley UK 19% market share 2004 - 1,459 branches Brossette 16% market share 1992 - 199 branches 2004 - 417 branches PBM acquired 2003 8% market share 2004 - 293 branches Heatmerchants 10% market share 1999 - 20 branches 2004 – 54 branches Brooks acquired 2004 7% market share 2004 – 18 branches ÖAG 20% market share acquired 1994 Austria 1994 - 47 branches 2004 - 62 branches Czech Republic 1994 - 4 branches 2004 - 22 branches Hungary 1994 - 6 branches 2004 - 25 branches Manzardo 2% market share acquired 1999 1999 - 7 branches 2004 - 23 branches Tobler 24% market share acquired 2003 2004 - 22 branches Wasco 15% market share acquired 2002 2004 - 11 branches CFM 30% market share acquired 2000 2 branches Electro-Oil International acquired 1993, 3 locations European Distribution

37. 37 Group Sales & Operating Profit NA Plumbing and Heating 37.9% US Building Materials 20.2% UK 20.0% Continental Europe 21.9% Year Ended 31 July 2004 US Building Materials 16.8% NA Plumbing and Heating 40.7% UK 25.4% Continental Europe 17.1% Sales Operating profit

38. 38 Business Drivers New residential housing RMI Industrial Industrial & Commercial RMI Residential

39. 39 Plumbing & Heating Installers 33% Building Contractors 37% Utilities 7% HVAC 6% Mechanical Contractors 11% Industrial 6% Our Diverse Customer Mix

40. 40 Branches

41. 41 Acquisitions History

42. 42 Monthly Lumber Prices 2000 - 2004 Year to July High – May 2004 at US$456 Low – January 2001 and November 2002 at US$271

43. 43 US Housing Starts Source: US Census Bureau Starts (000s)

44. 44 New Residential Construction Activity in the US Total US Housing Starts, 1900–2005E Source: US Census, National Association of Home Builders (NAHB) 0 500 1,000 1,500 2,000 2,500 1900190719141921192819351942194919561963197019771984199119982005E Starts (000s) Single Family StartsMulti-Family Starts 1900-1945 Average Single Family Starts = 280 1946-2002 Average Single Family Starts = 1,102 1946-2002 Average Total Starts = 1,491 1900-1945 Average Total Starts = 414

45. 45 New Residential Construction Activity in the US Source:US Census Bureau, UBS Warburg estimates Average New Single–Family Home Sizes and Average Real Selling Price per Square Foot, 1950–2002 1,050 1,250 1,450 1,650 1,850 2,050 2,250 2,450 19501954195819621966197019741978198219861990199419982002 (Square Feet) 55 60 65 70 75 80 85 90 95 100 ($/Square Foot) Average Square FeetAverage Real Selling Price/Square Foot

46. 46 New Residential Construction Activity in the US Immigration by Decade, 1820–2010E Source:The Immigration and Naturalization Service, Statistical Yearbook; Joint Center for Housing Studies at Harvard University 0 1 2 3 4 5 6 7 8 9 10 1820s1840s1860s1880s1900s1920s1940s1960s1980s2001- 2010E People (mm)

47. 47 New Residential Construction Activity in the US Average Housing Starts (in thousands), 2001–2010 2001–2010 Household Growth 12,500 + Replacement of Lost Units 3,200 Change in Vacancies 2,100 = Total Housing Demand 17,800 + 2001–2010 Housing Demand 17,800 – Estimated Manufactured Home Activity 2,600 = 2001–2010 Projected Housing Starts 15,200 Source:Joint Center for Housing Studies at Harvard University

48. 48 Repair and Remodeling Activity in the US Residential Repair and Remodeling Expenditure vs Expenditures for New Residential Construction, 1970–2005E Source:US Census Bureau, UBS Warburg estimates, Joint Center for Housing Studies at Harvard University 0 50 100 150 200 250 300 350 19701975198019851990199520002005E ($bn) Residential Repair and Remodeling ExpendituresNew Residential Construction

49. 49 Repair and Remodeling Activity in the US Residential Maintenance and Repair Expenditures vs Expenditures for Remodeling and Alterations, 1970–2005E Source:US Census Bureau, UBS Warburg estimates, Joint Center for Housing Studies at Harvard University 0 20 40 60 80 100 120 140 160 19701975198019851990199520002005E ($bn) Residential Maintenance and Repair ExpenditureRemodeling and Alterations Expenditures

50. 50 Repair and Remodeling Activity in the US Alterations Adjusted Implied Total Housing Starts of New Housing Started, 1970–2005E Source:US Census Bureau, UBS Warburg estimates, Joint Center for Housing Studies at Harvard University 1970 Equivalent Square FeetSquare Footage Effect of Home Size Increases Alterations Adjusted Incremental Square Feet 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 19701975198019851990199520002005E (Square Feet)

51. 51 Wolseley Group Total - Sales & Profits Sterling Millions 1982-2004 13% £10bn £8bn £6bn £4bn £2bn 0 £1,000m £800m £600m £400m £200m 0

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