PRELIMINARY RESULTSYear ended 31 March 2012

29th May 2012

2

� Introduction Richard Moon

� Overview of results & outlook Nick Jefferies

� Financial review Simon Gibbins

� Operating Review Nick Jefferies

Agenda

3

Introduction

� Difficult economic conditions in Europe

� Good results

� Strategy working

� Final dividend increased by 7%

� Acquisitions performing well and adding value

4

� Introduction Richard Moon

� Overview of results & outlook Nick Jefferies

� Financial review Simon Gibbins

� Operating Review Nick Jefferies

Agenda

5

Overview of annual results

� Underlying operating profit up 9%

� Gross profit up 4%

� GM up 1.8ppts to 30.2%

� Underlying diluted EPS up 7%

� PBT up 42%

� Free cash flow of £10.5m (130% of

underlying operating profit)

� Full year dividend up 7%

1. Underlying profits exclude exceptionals, amortisation of acquired intangibles and IAS 19 charge on legacy pension fund

FY 11 FY 12

Revenue £265m £258m

Gross profit £75.2m £77.9m

Underlying Operating Profit(1)

£7.4m £8.1m

Underlying Profit before Tax(1) £7.1m £7.2m

Profit/(loss) before Tax £1.9m £2.7m

Underlying diluted EPS(1) 18.6p 19.9p

Fully diluted EPS 5.7p 7.1p

Dividend per Share 7.47p 8.0p

6

Operating Highlights

� Continued improvement in operating margins

� Despite economic conditions

� Further improvements in gross margins

� Achieved targets

� Quick response to changing market conditions

� £6m annualised cost reductions

� Recognised with 2 major supplier awards

� Sales performance

� Web transformation project progressing on track

� Acquisitions performing well and adding value

7

Outlook

Challenging conditions

� Business in good shape

� Improving Book to Bill ratio

� Growing funnel of new opportunities

� But customers cautious

� Global electronics market showing signs of

improvement

� European conditions very difficult

� Low / no visibility

� Weak European PMI data

Electronics Division Book to Bill ratio

8

� Introduction Richard Moon

� Overview of results & outlook Nick Jefferies

� Financial review Simon Gibbins

� Operating Review Nick Jefferies

Agenda

9

Gross margin improvements offset tougher sales

environment

� Gross margin has increased significantly

� FY 30.2% up 1.8ppts y-o-y

� FY reported sales down 3%

� Shift away from low margin products

– Electronics Division up 1% (1)

� European market conditions tougher

– Ave European PMI down from 57 in H2 11

to 48 in H2 12.

1. Excluding terminated non specialist products

Reported sales (£m)

Gross margin

10

Full year gross profits increase

� Gross Profit up 4% y-o-y reported

� H2 reported GP down 2%

Reported Gross Profit (£m)

£4.6m

FY: £78mFY: £75m

11

Tight cost control continues

� Like for like expenses down 3%

� Mostly in H2 (down 7%)

� Costs reduced by £6m annually (9%)

� Cost of £3.5m (of which £1.3m in 2013)

� £1.4m realised in 2012

� £4.6m benefit in 2013

FY 11 FY 12 %

Like for like 67.4 65.4 -3%

Acq/disposals 1.0 4.4

FX (0.6) -

Reported (underlying) 67.8 69.8 3%

Exceptionals

2011/12 restructuring - 2.2

Other exceptionals 4.4 1.2

Amortisation/earnout 0.5 0.8

Reported (IFRS) 72.7 74.0 2%

12

-4

-3

-2

-1

0

1

2

3

4

5

H1 10 H2 10 H1 11 H2 11 H1 12 H2 12

-2.0%

0.0%

2.0%

4.0%

Underlying operating profit

% of sales (FY)

Operating profit and margins continue to improve

despite downturn

� Full year operating profit(1) up 9% to

£8.1m

� Operating margin up 0.3ppts to 3.1%

� H2 operating margins up 0.1ppts to 3.2%

over H1 12.

1. Underlying operating profit excludes exceptionals and amortisation of acquired intangibles

H1 10

£4.6m

FY: £8.1m

Operating

Profit £m

Op Profit %

of Sales

FY: £7.4m

FY: -£0.7m

13

Profitability improvement across both divisions

Both businesses delivering profit and margin growth on lower sales

� Electronics

� Higher margin organic sales and good progress from acquisitions

� Costs rationalisation (low margin business; front end integration)

� Supply Chain

� Shift to higher margin contracts (Outsource/Enterprise)

� Sale of loss making Retail business

1. Like for like is at constant exchange rates, including acquisitions but excluding those in the year and excluding ATM Parts disposal in FY11

2. As a percentage of sales

£m

Sales Operating Operating Sales Operating Operating Reported LFL (1)

Profit Margin % Profit Margin %

Electronics 210.5 10.3 4.9% 207.1 10.8 5.2% -2% -9%

Supply Chain 54.3 1.2 2.2% 50.7 1.3 2.6% -7% -4%

Unallocated(2)

(4.1) -1.5% (4.0) -1.6%

Total 264.8 7.4 2.8% 257.8 8.1 3.1% -3% -8%

Sales Growth FY 11 FY 12

14

Earnings growth

� Interest

� Increased facilities

� Utilisation to fund acquisitions

� Tax

� Underlying effective tax rate of 18%

� Tax loss utilisation (£17m remaining)

� Underlying EPS up 7% to 19.9p

� IFRS adjs(1)(2) (FY: £4.5m)

� Restructuring £2.2m

� Acquisitions/disposals & integrations £0.9m

� Web costs £0.3m (total forecast £1.3m)

� Amortisation and legacy pension £1.1m

� IFRS EPS up 25% to 7.1p

1. Underlying operating profit excludes exceptionals of £3.4m and amortisation on acquired intangibles of £0.8m

2. Underlying finance costs excludes IAS 19 pension finance cost (FY12: £0.3m)

£m FY 11 FY 12

Operating profit(1)

7.4 8.1

Finance costs(2)

(0.3) (0.9)

PBT 7.1 7.2

Effective tax rate 23% 18%

PAT 5.5 5.9

Underlying EPS 18.6p 19.9p

IFRS adj to PBT (5.2) (4.5)

IFRS PBT 1.9 2.7

IFRS EPS 5.7p 7.1p

15

Working capital remains tightly managed

� Net working capital remains low at 12.0% of sales

� In line with last year

� DSO at 50 days (5 days better than last year)

� Inventory turns 7.6 (v 7.9x last year)

� Electronics 9.8 turns

NWC £m % of Sales

20.0

25.0

30.0

35.0

FY 09 FY 10 FY 11 FY 12

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

Working Capital % Sales

16

Strong cash generation

� Operating cash – up 12% to £10.2m

� Free cash flow generation up 98% to £10.5m

� 130% of operating profit

� Now paying tax (mainly Germany/RSA)

� Exceptionals (£3.9m) – BFI integration and 2012

restructuring. £2.5m payable in 2013.

� Acquisitions(1) – Hectronic, MTC

� Average Q4 12 net cash of £1.0m

� £19m of committed facilities (2)

1. £1.7m for Hectronic (inc £0.5m overdraft), £1.8m for MTC (inc £0.5m of cash) and £0.5m completion payment to Compotron.

2. The Group also has £13m of uncommitted facilities.

FY 12

Net cash b/f 6.7

FY12 cash flow (0.3)

FX (0.1)

Net cash c/f 6.3

FY 11 FY 12

Underlying Operating Profit 7.4 8.1

D&A + LTIPs 1.7 2.1

Operating Cash 9.1 10.2

Working capital (2.7) 3.6

Capex (1.3) (1.3)

Interest (0.3) (0.9)

Tax 0.5 (1.1)

Free cash 5.3 10.5

Exceptionals (5.1) (3.9)

Legacy pension (0.7) (0.7)

Free cash (after excep) (0.5) 5.9

Dividends (2.0) (2.2)

Acquisitions (4.4) (4.0)

Cash flow (6.9) (0.3)

17

Summary financial highlights

� Strong gross margins and resilient gross profits

� GM up 1.8ppts to 30.2%

� GP up 4% on last year

� Tight control of costs and capital

� H2 costs down 7%

� Working capital at 12% of sales

� Profits and earnings growth in a challenging environment

� Underlying op profits of £8.1m up 9%

� Underlying EPS of 19.9p up 7%

� IFRS EPS of 7.1p up 25%

� Generating cash

� £10.5m of free cash flow

� Increasing returns to shareholders

� Dividend up 7%

18

� Introduction Richard Moon

� Overview of results & outlook Nick Jefferies

� Financial review Simon Gibbins

� Operating Review Nick Jefferies

Agenda

19

Group overview - Acal

Leading supplier of Specialist Electronics

Supplying manufacturers of industrial, medical, renewable energy, transport, security

and automation equipment.

Sales by Division Profit Contribution by Division

Electronics 89%Electronics 80%

20

Market Position

� European Market leader

� Specialist industrial markets

� Highly fragmented market

Strategy

� Grow position in key markets

� Expand specialist product offer

� Increase operational efficiency

Differentiation

� Product range & features

� Technical capabilities of staff

� Custom development & build

High Volume,

Low Gross Margin

Global High Service

distributors

Global High Volume

distributors

Low Volume,

High Gross Margin

Competitive landscape

GM 30% European SpecialistAcal / BFi Optilas

Standard

components

Specialist components &

systems

Leader in specialist electronics

c.£2bn

market

Additional

Market est. £2bn

* Europartners and management estimate

21

A unique value proposition

� Only company operating on a broad scale in specialist technologies

� Multiple technologies, industrial sectors & geographies

� Market leader in Europe

� Selling solutions rather than components

� Design capabilities

� Attractive solution for customers & suppliers

� Customers - technical expertise & product knowledge

� Suppliers - access to 25k+ potential customers

� Unique products

� Around 75% of all products sold are unique (sourced / customised / designed)

Developing a higher margin business model

22

Group objectives & investment case

� Sales growth well ahead of GDP over the business cycle

� >10% CAGR

� Develop and maintain attractive operating margins

� > 5%

� Enhance organic growth with selective acquisitions

� Earnings enhancing

� Develop strong cash flow to fund future acquisitions and dividends

� FCF >60% of EBIT

� Create value by exceeding 20% ROTCE

� Upper Quartile TSR growth for shareholders

3 Yr performance

21% CAGR Electronics

3.1% from loss

4 acquisitions £22.6m,

26% Pre tax ROI

£22.4m free cash flow,

151% of u/lying op profit

21.7% FY12

Top 27%

23

3 year performance - Financial

� 3yr TSR 130% (32% CAGR)

� Top 27% of Small Cap Index

Earnings per share (p)

Free Cash Flow (£m) 1 Return on trading capital employed 2

Dividend per share (p)

1. Free cash flow before exceptional cash payments and payments to legacy pension scheme

2. Return on trading capital employed: Return = underlying operating profit; trading capital = (fixed assets excluding goodwill plus working capital)

FY09 FY10

FY10

24

3 year performance - Operational

Group Sales (£m)

Gross margin %Operating margin (%)

Specialist sales (%)

25

Acquisitions develop Group capabilities as well

as enhance performance

Acquisitions

� Acquisition spend of £22m over three years

� Return on total investments pre tax in FY12 of 26%� Including costs of integration

� Continuing to target similarly value enhancing acquisitions

FY10 FY11 FY12

26

Performance by geography – FY12

� Southern Europe

� comprises Spain 5%, Italy 6%, France 13% of sales

� decline driven by Spain – 35%

Electronics Division Sales by region Electronics Division growth rates by region

Northern Europe: UK, Nordic

Central Europe: Germany, Belgium, Netherlands

Southern Europe: France, Italy Spain Growth rates exclude discontinuations, include acquisitions

Southern Europe

27

Performance by technology – FY12

� Light & Imaging decline driven by Imaging -30%

� Spain

Light & Imaging

28

Balanced Electronics portfolio with

diversified customer and supplier base

� Largest customer accounts for <1% of Group revenue

� Top 10 customers account for <5%

� 25,000 registered customers

� Average order value £2600

� Largest supplier accounts for <3% of Group revenue

� Top 10 suppliers account for 16%

� Suppliers 11-50 account for 27% of revenue

Customers – FY12 revenue breakdown

Suppliers – FY12 revenue breakdown

29

New web will expand our customer reach

� Marketing website will bring new capabilities

� Greater product visibility

� Google optimised

� 12 countries with local languages

� Roll out during H2

� New capabilities will bring new customers

� Greater visibility

� Brand building

� Significant development investment

� Further differentiates us

30

Customer case study – Exhaust Gas Sensor

� Exhaust gas sensor for cars

� Anti-pollution measure

� Feedback to engine management system

� Sensor inserted into exhaust manifold

� Extremely challenging environment

� High temperature +500C

� High reliability

� Acal’s role:

� Supporting customer design

– Component specification

– Assembly process

� Supply components

Sensor application

31

Customer case study – Industrial data recorder

� Data recorder for Level Crossing monitor

� >8000 crossings in UK alone

� Installation into existing equipment

� Acal’s role:

� Design bespoke system to customer

specification

– Industrial computer

– Bespoke housing

� Testing for regulatory approvals

Microsystems application

32

Customer case study – Rail testing equipment

� Fibre optic cable assembly

� Rail track fault detection

� Harsh environment

� Critical application

� Acal’s role;

� Design of fibre optic cable assembly to

customer specification

� Assembly of cable and connector assembly

� On site installation of fibre optic cable

Fibre Optics application

33

Supply Chain division stable despite market

conditions

� Stable operating performance

� Profits up 8% to £1.3m

� Gross Profit increased 2%

� Sales down 4% (like for like)

� Continued improvement in business profile

� Transition to higher margin business

� Cost reductions

� New contracts progressing well and as

planned

Underlying operating profit £m

34

Summary

� Good results

� Strategy working

� Gaining market share

� Design funnel of new opportunities continues to grow

� Business in good shape

� Acquisitions contributing well

� Strong balance sheet

� Very difficult European economic conditions

� Remain cautious for the year ahead

� Well positioned to accelerate growth as and when conditions improve

APPENDIX

36

Balance sheet

� Increase in intangibles (£0.4m) and goodwill

(£4.2m) – acquisitions of Compotron,

Hectronic and MTC

� Working capital (see slide 15)

� Increase in provisions £1.6m – Q4

restructuring initiatives/contingent

consideration

� Pension – increase of IFRS liability by £1.0m

mainly due to lower gilt rates

� Movement in Net Assets

FY 11 FY 12 %

Fixed assets

PPE 3.8 3.5 -8%

Intangibles 3.7 4.1 11%

7.5 7.6 1%

Working Capital

Inventories 25.3 25.7 2%

Receivables 59.3 49.4 -17%

Payables (51.6) (45.4) -12%

33.0 29.7 -10%

Trading capital employed 40.5 37.3 -9%

Goodwill 17.4 21.6 24%

Provisions (6.1) (7.7) 26%

Tax liabilities (1.7) (1.9) 12%

Pension (5.5) (6.5) 18%

Total capital employed 44.6 42.8 0.7

Net cash 6.7 6.3 -6%

Total net assets 51.3 49.1 -4%

Net Assets

Balance at 31/3/11 51.3

Add profit after tax 2.1

Dividend paid (2.2)

Increase in net pension liability (1.0)

Share based payments 0.6

FX on net currency assets (1.7)

Balance at 31/3/12 49.1

37

Underlying to IFRS reconciliation

� Management believe that

“Underlying profitability” is a useful

measure of the underlying

profitability of the business.

� Excluded from IFRS results are:-

� exceptional costs (restructuring

and integration)

� Earn out on acquisitions

� IAS 19 pension finance charge

related to a legacy scheme

� Amortisation on acquired

intangibles

� Share based payments are

included in underlying profits

Y/e 31 March 2012 (£m)

Underlying Excep. Amort IAS19 IFRS

Gross profit 77.9 77.9

S&D costs (41.1) (41.1)

Admin expenses (28.7) (3.4) (0.8) (32.9)

Operating Profit 8.1 (3.4) (0.8) 3.9

Net finance costs (0.9) (0.3) (1.2)

Profit before tax 7.2 (3.4) (0.8) (0.3) 2.7

Taxation (1.3) 0.4 0.2 0.1 (0.6)

Profit after tax 5.9 (3.0) (0.6) (0.2) 2.1

Effective tax rate 18% 22%

Fully diluted EPS (p) 19.9 7.1

Y/e 31 March 2011 (£m)

Underlying Excep. Amort Earn out IAS19 IFRS

Gross profit 75.2 75.2

S&D costs (39.1) (39.1)

Admin expenses (28.7) (4.0) (0.3) (0.2) (33.2)

Other op expenses 0.0 (0.4) (0.4)

Operating Profit 7.4 (4.4) (0.3) (0.2) 2.5

Net finance costs (0.3) (0.3) (0.6)

Profit before tax 7.1 (4.4) (0.3) (0.2) (0.3) 1.9

Taxation (1.6) 1.4 (0.2)

Profit after tax 5.5 (3.0) (0.3) (0.2) (0.3) 1.7

Effective tax rate 23% 11%

Fully diluted EPS (p) 18.6 5.7

38

Exceptional items and IFRS adjustments

FY 11 FY 12

Electronics restructuring costs 3.6 1.8

Supply chain & other restructuring 0.8 0.4

ATM asset w/down 0.4

Acquisiton/integration costs 0.2 0.7

Disposal costs 0.2

Web set up costs 0.3

Write back of unutilised provisions (0.6)

Total Exceptionals 4.4 3.4

Compotron Earn out 0.2

Amortisation of acquired 0.3 0.8

intangibles

Legacy pension - IAS19 0.3 0.3

Underlying Adjustments 5.2 4.5

Tax impact of adjustments (1.4) (0.7)

After tax adjustments 3.8 3.8