Gross margin. 1,987 m revenue. 708 m revenue. Nordics

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1 Wolseley is the world s leading specialist plumbing and heating distributor. Wolseley operates in five geographic regions the United States, Canada, the Nordic region, the United Kingdom and Central Europe. We supply customers in the new; repair, maintenance and improvement (RMI) and civil infrastructure sectors. Many of our brands hold leading positions in their local markets. 13,00m Group +7.1** 28.0 Gross margin 857m Trading profit* ,728m Gross profit The financial results in this document relate to ongoing businesses only. Where we operate 8,337 m 1,987 m 1,863 m 708 m 405 m USA UK Nordics Canada Central Europe Investment case summary Our industry Our industry the specialist distribution of plumbing and heating and building materials principally to trade customers has a large customer base, a clear need for distributors in the supply chain and is highly fragmented, with no market dominated by a single player. Our markets Demand for our products may be influenced by macroeconomic factors such as gross domestic product ( GDP ), unemployment and consumer confidence. Other key factors supporting long-term growth in the markets are population growth, ageing housing stock and increased levels of comfort in homes along with sustainable development. These markets are attractive and fragmented with excellent growth opportunities. Our business We hold leading positions in many of the markets in which we operate. Our knowledge, local coverage and national scale enable us to operate efficiently and provide a high level of service to our customers. Our business has sustained gross margins, attractive returns on capital employed, a relatively high return on sales, strong cash generation and a strong balance sheet. Our strategy Our goal is to deliver long-term sustainable and profitable growth ahead of the market. We will continue to extend our leading positions in plumbing and heating, and building materials distribution. Our objective for each business unit strategy is to grow profitability faster than our competition by gaining both new customers and a greater share of our existing customers business in every branch. We ll do this by providing the best customer service, delivered by the best branch staff in the industry and by partnering with key suppliers in the industry, underpinned by a lowcost efficient operating model. 60,000 suppliers 7 US population growth in next decade 16.9 Return on gross capital employed +7.1 growth in ** 1.1 million customers 59 Sales to RMI market 6.4 trading margin 83 from businesses which are no. 1 or no. 2 in their market *This is operating profit before exceptional items and the amortisation and impairment of acquired intangibles. **Like-for-like change in.

2 Overview by region USA UK 8,337 m Market position Blended Branches 1 Waterworks 2 Fire and Fabrication 2 HVAC 3 Industrial 3 1,987 m Market position Plumbing and Heating =1 Pipe and Climate Center 1 Utilities 2 Ferguson is the market leading distributor of plumbing supplies in the USA Strong business model with large scale distribution centre network and national branch network Strong customer service and employee engagement scores The UK is focused on its core, strong businesses with market leading positions in plumbing and heating and adjacent businesses The majority of the UK s is generated from the RMI market Revenue (63 of Group) 8,337 m Trading margin 8.2 Business units 6 Branches 1,418 Employees 22,171 Revenue (15 of Group) 1,987 m Trading margin 4.5 Business units 3 Branches 758 Employees 6,331 of total 2014/15 of continuing 2015 Civil infrastructure 16 new construction 15 construction 15 RMI 28 RMI 26 of total 2014/15 of continuing 2015 Civil infrastructure 11 new construction 15 construction 8 RMI 14 RMI 52

3 Overview by region Nordics Canada 1,863 m Market position Stark Denmark (building materials) 1 Beijer Sweden (building materials) 1 Stark Finland (building materials) 2 Silvan Denmark (DIY) m Market position Blended Branches 2 Waterworks 2 The leading distributor of building materials in the Nordic region with number one market positions in Denmark and Sweden A leading retailer in Denmark and Sweden A wholesale distributor of plumbing, heating, industrial and ventilation equipment National distribution centre in Ontario and branches located in all 10 provinces across Canada Servicing residential, commercial and industrial sectors both in the RMI and new construction markets Revenue (14 of Group) 1,863 m Trading margin 3.9 Business units 5 Branches 259 Employees 6,293 Revenue (5 of Group) 708 m Trading margin 4.8 Business units 3 Branches 226 Employees 2,490 of total 2014/15 of continuing 2015 new construction 9 construction 19 RMI 14 Civil infrastructure 3 RMI 55 of total 2014/15 of continuing 2015 new construction 23 construction 21 RMI 32 RMI 24

4 Overview by region Central Europe 405 m Market positions Tobler (Switzerland) 1 Wasco (Netherlands) 4 Tobler is the leading distributor of heating and plumbing products in Switzerland, generating a substantial proportion of its sales online Wasco is a distributor of heating, plumbing and spare parts in the Netherlands, primarily serving large regional and national contractors, as well as small installers. Revenue (3 of Group) 405 m Trading margin 5.2 Business units 2 Branches 78 Employees 1,072 of total 2014/15 of continuing 2015 new construction 7 RMI 60 construction 22 RMI 11

5 Key performance indicators The Group has used the following performance indicators to assess its development against its strategic and financial objectives during the year. The Group gives prominence to different indicators as the economic environment changes. Like for like growth Gross margin Labour cost as of gross profit Trading margin Average cash-to-cash days Return on gross capital employed Employee engagement, USA Customer service, USA Injury rate Customer service There is a good correlation in our business between high customer loyalty scores in a branch and better financial performance. The process of tracking and reporting customer service differs by region, therefore an example is given for the USA, the largest region in the Group. The net promoter score has remained flat at 64.7 compared to 2014, reflecting continuing high service levels. Employees and health and safety The safety of Wolseley s people is paramount and lost time incident rates are monitored closely in each of our businesses. The Group s health and safety performance is monitored using three standard KPIs: medical injury frequency, lost workdays and vehicle collision frequency. More information is provided in the Sustainability section of the website. In addition, all of our business units measure employee engagement levels on a regular basis.

6 Senior management Ian Meakins Group Chief Executive Ian was, until April 2009, Chief Executive of Travelex Holdings Limited, the international foreign exchange and payments business. Previously he was Chief Executive Officer of Alliance UniChem plc until its merger with Boots in July Prior to that, between 2000 and 2004, he was President, European Major Markets and Global Supply for Diageo plc, spending over 12 years with the company in a variety of international management positions. John Martin Chief Financial Officer John, a chartered accountant, joined the Company as Chief Financial Officer on 1 April 2010 and assumed management responsibility for Wolseley Canada from August He was previously a partner at Alchemy Partners, the private equity group, and prior to that was Chief Financial Officer of Travelex Holding Limited and Hays plc, the business services group. John started his career at Arthur Andersen before joining The Stationery Office Group, on its privatisation, where he was Group Controller. Frank Roach Chief Executive Officer, North America Frank is Chief Executive Officer of Ferguson Enterprises, Inc. and responsible for all of the Group s businesses in the USA. He first joined Ferguson Enterprises Inc. in 1976 and has held a number of business roles. In 2005, he was appointed as Senior Vice President of the Wolseley North America management team, playing a key part in further developing and expanding the Group s North American businesses. Patrick Headon Managing Director, Wolseley UK Patrick Headon was appointed Managing Director of Wolseley UK with effect from 30 March He is responsible for the whole of the UK business. He joined Wolseley in May 2012 and was Managing Director of Wolseley Central Europe from 2013 to March Prior to joining Wolseley he held the position of CEO at Switcher SA, the Swiss clothing brand. From 2005 to 2009, Patrick was Business Development Director at ebay International. Prior to that he spent 8 years in the beverage industry in general management positions for Diageo plc.

7 Senior management Tony England Chief Information Officer Tony England was appointed Group Chief Information Officer in October He joined Wolseley in 2006 as Chief Technology Officer; in June 2007 the role expanded into the Director of Service Delivery role, responsible for establishing a group-wide IT operations and service management function. He was previously Head of Technology Development and Architecture at Standard Chartered Bank where he worked for several years. Prior to that Tony spent five years at Glaxo-Wellcome as member of the major projects team and leading Infrastructure Development function for the R&D business. Bob Morrison Group HR Director Bob Morrison was appointed Group Human Resources Director in April In this role Bob works with the senior HR management across the Group, providing leadership and direction, ensuring that our people practices and Leadership Development are fully aligned and supportive of our business strategy. Prior to joining Wolseley, Bob spent five years with Blockbuster Inc., where he was Senior Vice President of Human Resources and Operations for Blockbuster s 3,000 stores outside the United States and Canada. Additionally, from 1986 to 1994, he was the Vice President of Human Resources for Burger King Corporation s International business. From 1994 to 2001, Bob owned and operated a retained executive search firm primarily in the United States. Richard Shoylekov Group General Counsel Richard joined in November A UK-qualified lawyer, Richard has responsibility for the Group s legal affairs, risk management, governance and compliance processes, and corporate responsibility. From November 2007 until July 2015 he was also Company Secretary of. Before joining Wolseley, Richard was General Counsel and Company Secretary at Corus Group plc.

8 Financial calendar 10 November 2015 FY16 Q1 Interim Management Statement 22 March 2016 FY16 Half Year Results Investment information Wolseley s shares are traded on the LSE under the symbol WOS. Wolseley s ADRs are traded on the highest tier of the over-thecounter market in the USA, under the symbol WOSYY. 1 June 2016 FY16 Q3 Interim Management Statement Contact Subscribe Mark Fearon, Director of Group Communications and Investor Relations Wolseley Group Services Parkview 1220 Arlington Business Park Theale Near Reading RG7 4GA Nina Coad Brunswick Group LLP 16 Lincoln s Inn Fields London WC2A 3ED T: +44 (0) You can sign-up to receive alerts and content feeds when news releases are published at T: +44 (0)