Electrocomponents plc becoming RS Group plc

Our Journey
to Greatness
Investor Event
30 March 2022
Welcome:
Our Journey to Greatness
Lindsley Ruth
Chief Executive Officer
Our story: past, present and future
 We needed to fix the house

But, we had
strong people
who wanted
change

We were • Bureaucratic, passive, reactive

• Inflexible, not agile
• Strategy over execution
• Talkers not doers
• A sleeping giant
 We put in place our
Performance Improvement Plan

Best customer Accountable

Operate
and supplier and responsive
for less
experience organisation

Superior results for customers, suppliers and shareholders

 We have balanced our
health and wealth aspirations
HEALTH
Employee engagement
Employee turnover
Leadership development
Customer satisfaction
HEALTH
Customer numbers
On time to promise
Inventory availability
Voice of supplier
Health and safety
Innovation
WEALTH
First Choice Happy Zone Revenue growth
Digital growth
Cost of sales
Life in the Fast Lane
Operating profit
Capital expenditure
Net debt to adjusted EBITDA
Middle of the Road
Return on capital employed
Earnings per share
Danger Zone Share price
Employee productivity
WEALTH
 We set out our strategic priorities

DESTINATION 2025
We want to accelerate our
ambitions, moving from the
good business we are
today to a truly great one
We have
become adaptable
and proven we
are resilient
VOLATILITY VALIDATION

x
UNCERTAINTY UNDERSTANDING

COMPLEXITY COLLABORATION

AMBIGUITY AMBITION
 Our history of resilience

Group revenue: 1972 - 2021

“……US-China trade
“…macroeconomic talks and
“Turmoil in the Far
conditions negotiations around £2bn
deteriorated Britain’s exit from the revenue
East, less than significantly…” EU…”
“…rising rate of buoyant economies
inflation, the in much of
increased cost Europe…”
of borrowing, the “Exceptionally tough
conditions in all
£1bn
high value of
geographic revenue
sterling…” markets, particularly
in the electronic and
telecommunications
“…a million manufacturing
unemployed, sectors”
the miners strike, £0.5bn
electric power “In a period of revenue
cuts, railway recession…”
troubles…” £0.1bn
revenue
1976

1997

2002
1972
1973
1974
1975

1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996

1998
1999
2000
2001

2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
We are focused on the triple bottom line:
People, Profit and Planet
1. Advancing sustainability
• Net zero in direct operations by 2030, value chain before 2050
• Commitment to Science Based Targets initiative (SBTi) and
business ambition for 1.5oC

2. Championing education and innovation

• Buildings skills and fostering innovation with 1.5 million engineers
and innovators

3. Empowering our people

• Working towards 40% women and 25% ethnically diverse
leaders

4. Doing business responsibly

• ESG targets embedded in employee rewards, supplier
objectives and sustainability-linked loans
We want to become first choice
for all our stakeholders
We nurture talent and build a
high-performance, purpose-led
culture

We generate sustainable We are their go-to partner in

shareholder value Our vision: seamlessly providing product
to become and service solutions
first choice
for all our
stakeholders

We are their go-to partner,

We inspire a more inclusive, providing global market reach
diverse and sustainable world and insight to expand revenue
and develop new products
We have become a
purpose-led
organisation

OUR PURPOSE:

Making amazing happen for a better world

drives our people to inspire to make a
difference, innovate to make more possible
and deliver to make it happen. Every day.

…and that starts with me

 The Dash – Linda Ellis
I read of a man who stood to speak
At the funeral of a friend.
He referred to the dates on the tombstone
From the beginning...to the end.
He noted that first came the date of birth
And spoke the following date with tears,
But he said what mattered most of all
Was the dash between those years.
For that dash represents all the time
That they spent alive on earth
And now only those who loved them
Know what that little line is worth
For it matters not, how much we own,
The cars, the house, the cash.
What matters is how we live and love
And how we spend our dash.
So, think about this long and hard.
Are there things you'd like to change?
For you never know how much time is left
That can still be rearranged.
If we could just slow down enough
To consider what's true and real
And always try to understand
The way other people feel.
And be less quick to anger
And show appreciation more
And love the people in our lives
Like we've never loved before.
If we treat each other with respect
And more often wear a smile,
Remembering this special dash
Might only last a little while.
So, when your eulogy is being read
With your life's actions to rehash...
Would you be proud of the things they say?
About how you spent YOUR dash?
The future
Our individual brands do not
reflect our increasingly
integrated Group

Global integrated
omni-channel
solutions partner
for industrial B2B
customers
We have one
purpose-led brand:
RS Group plc
ONE BRAND, ONE TEAM, ONE CULTURE

Global integrated omni-channel solutions

partner for industrial B2B customers
 The RS Way

Unchanged strategy,
just greater ambition
Unlocking global efficiency,
scalability and operating leverage
We have greater confidence
in our long-term opportunity

• Significant change in our culture and mindset

• Our business model is aligned to the changing
market, with our enablers driving our
outperformance
• We are ready to fully capitalise on our position
and strengths to become a great business

Our confidence is built on:

• Having the right people
• Providing a great user experience
There is much
• Delivering great execution
more to come…
Who we are
Why we are outperforming
Our opportunity
David Egan
Chief Financial Officer
 We know who we are

We are a global integrated omni-channel

solutions partner for industrial B2B customers
We help designers, builders and maintainers of industrial
equipment and operations work safely and sustainably

c. 1.2m >2,500 14 >700,000 3m c. 60,000 c. 75%

customers across suppliers distribution centres stocked products unstocked products parcels of Group revenue from
>130 countries globally distributed daily industrial product range

18 / 14,767 c. £210 c. 64% c.13% c. 20% 75 <1%

Sustainalytics average order of Group revenue of Group revenue of Group revenue employee share of a highly
companies globally value from digital* from own-brand from solutions engagement score fragmented market

* like-for-like
Our outperformance has been driven by
delivering:
Growth accelerators:
Cultural transformation: Operational efficiency:
Compelling value
High-performance, World-class capability
purpose-led culture proposition and
and execution
customer experience

Supporting a Investing in a scalable ⚫ Being easy to do

⚫
purpose-led culture
⚫
global network business with Financial
performance:
⚫ Committed to
⚫ Leveraging cross- ⚫ Offering a deep
driving sustainability
Group expertise and and broad product Profitable
– for a better world
opportunities range with strong revenue
availability growth
⚫ Providing product
and service
solutions
Cultural transformation:
High-performance,
purpose-led culture

• People first with wellbeing a Retention Employee

priority rate: engagement
c. 90% 75
• Agility to move online during
pandemic

• Flexibility as we move to hybrid Network of

working model trained
mental
• Investing in our people health first
aiders
Operational efficiency:
World-class capability and execution

⚫ Investing in a scalable global network

– c.£95 m investment in distribution centre
(DC) expansion to double capacity
– Improved automation and energy
efficiency
– 3 million sq ft of DC capacity supporting
mid-term growth aspirations
– Core to Brexit and COVID-19 resilience
– Buying and storing products closer to
customers to reduce freight miles

⚫ Leveraging cross-Group expertise and

opportunities
– Group-wide Centres of Expertise
– Insight-led data analysis to improve
customer loyalty and value
 Growth accelerators:
Compelling value proposition and
customer experience

Being easy to do Offering a deep and broad product Providing product and
business with range with strong availability service solutions
Digital capabilities allow Strong supplier relationships ensure continuity of Product and service solutions for
customers to self-serve supply despite global supply chain disruption design, inventory, procurement
and maintenance
Extensive product range offering alternative and
10k live chat visits sustainable product substitutions
per month* Onsite services drive customer
100% Our order availability loyalty and retention
80%
1m personalisation clicks Acquisitions expanded our
per month* 60%
solution offerings
Supplier delivery performance
40%

20%
2.8m technical document 19 new integrated supply
downloads per month* 0%
Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
contracts signed over last year

* RS website
Our outperformance
Financial performance:
Profitable revenue
growth
⚫ 2 x revenue since 2014/15*

Cultural Operational Growth ⚫ More than 3 x adjusted

transformation: efficiency: accelerators: operating profit since
High-performance, Compelling value
World-class
proposition and
2014/15*
purpose-led capability and
culture execution customer
experience ⚫ £725m adjusted free cash
flow since 2014/15*

⚫ 24.7% ROCE in H1 2021/22

* Using consensus estimate for 2021/22
Our value generating opportunities

1. 2. 3. 4.
There is enormous Our differentiated We are making Acquisitions will
growth opportunity business model amazing happen for accelerate organic
with <1% share of a will improve further a better world growth
c. £400bn+ on our Journey to with our and comfortably
fragmented market GREATness high-performance, beat our cost of
• Culture • Wisdom purpose-led culture capital within
• Customer • Solutions three years
experience • Execution

We are more confident in delivering stronger revenue and high-quality profitable growth
enhanced by strategically aligned acquisitions with a mid-teen adjusted
operating profit margin and at least 20% ROCE
There is enormous
growth opportunity
Dr Barry Lawrence
Professor of Industrial Distribution
Texas A&M University
Market trends

• Margin pressures
New markets, new applications Disruption &
• Innovation and differentiation innovation
Value creation & expansion of distributor functions Value-added
services
• Digitization of sales process + eCommerce Need of new
Impact on customer experience capabilities
• Disruptors
Consolidation, M&A, marketplaces
• Capability development
Sales, marketing, talent
• Value-added services Digital
Solutions led transformation
• New technologies and analytics
Big Data, AI, ML, Industry 4.0 & Smart Factories, IIoT
Total Available Market & Serviceable Available Market
for different market segments that RS Group serves
Global Market Serviceable Available
Market segment
2021 ($bn) Market 2021($bn)
Electronics 788 539
Electrical 518 380

Automation & Control 365 261

Facilities & Management 630 578

Mechanical & Fluid Power 97 73
Single Board Computing 3 1.8

Others 111 71
Source: GlobeNewswire (Automation & Control, Mechanical & Fluid Power), Grand View Research (PPE), PR Newswire (SBC), Mordor Intelligence (MRO)
Market share & revenue of RS Group in 2021
according to different market segments
Global market ($bn)
3
RS Group revenue for that market segment, 97
based on Texas A&M estimates ($bn) 0.13
111 0.14
365 0.08
518 0.58
630 788 0.58
0.13 0.53

Mechanical &
Automation &
Management

Single Board
Fluid Power

Computing
Electronics
Facilities &

Electrical

Control

Others
(MRO)

Our
0.021% 0.067% 0.112% 0.159% 0.19% 0.281% 4.231%
share
Serviceable available market in different
regions that RS Group serves ($bn)
400 340 400 200
286 150
300 300 150
200 113 200 100 60
86 51
100 100 42 52 50
0 0 0
Asia Americas EMEA Asia Americas EMEA Asia Americas EMEA
Pacific Pacific Pacific

Electronics Electrical Automation & Control

300 60 0.8 0.7 40

225 0.6 31
41 0.5
164 0.6 30 21
200 40
89 21 0.4 20
100 20 11 9
0.2 10
0 0 0 0
Asia Americas EMEA Asia Americas EMEA Asia Americas EMEA Asia Americas EMEA
Pacific Pacific Pacific Pacific

Facilities & Management Fluid & Mechanical Power Single Board Computing Other
Observations
• RS Group is well positioned to grow

• The markets are growing at a significant

rate

• RS Group has developed and acquired

capabilities to support growth opportunities

• RS Group has the operational strength and

strategic vision to take advantage of the
consolidating market

• The market opportunity is immense and

RS Group has proven its capabilities to
take the advantage
Our differentiated
business model

Our journey to GREATness

 Becoming great requires:

G R E A T
Galvanising a Realising world-class Extending our Accelerating to Transforming our
high-performance, customer wisdom, insight a solutions-led, executional
purpose-led culture experience and data innovative business capabilities
Jordan Barry Mike England Abigail Brockbank Doug Moody Sean Fredericks
Jessie Dearien Darshan Vaghela Simon Hilton Ellen Li

Powered by systems, processes and technology

Our journey to greatness: making amazing happen for a better world

Galvanizing a
high-performance
purpose-led culture
Jordan Barry
Chief People & Culture Officer

G
The importance of a
purpose-led culture
Make culture our greatest
differentiator

• Everyone understands our purpose and the

part they play
• We have the skills and mindset to get us there
• People show up as themselves
• We’re famous for a great candidate A place where everyone
experience is proud and excited
• Our leaders are human and authentic –
passion, humility and trust to come to work
Our achievements so far:

• Top 50 Inclusive UK Employees

• Improvement to 75 employee
engagement score

• My Academy for people to

connect, learn and grow globally

• Programmes to unite leaders

around passion, humility and trust

• Future Shaper programme to find

and develop our global talent We’ve done some
amazing
things
A Global People Plan to get us there

Attract, Create a An employee Simplify and

develop and purpose-led and candidate streamline our
retain the culture that experience people
right talent empowers and which sets us structure to
excites apart scale at pace
G : Galvanizing a high-performance
purpose-led culture

Our journey to greatness

Delivering • 100% leaders provided with ongoing
greater learning & training, with 33% focused
agility and on developing leadership skills

operational • c. 90% retention rate

ownership • By 2030, working towards:
– 40% woman leaders
– 25% ethnically diverse
Realising world-class
customer experience
Mike England
Chief Operating Officer

Jessie Dearien
VP Digital & Marketing, Americas

R
“Service with
a smile”

It’s in our DNA

Our framework to accelerate growth

Cultural transformation Product

FIRST CHOICE
Customer experience
choice

Operational efficiency Product

Understand and
our service
Growth accelerators: customers
Compelling value solutions
proposition and customer
experience

Ease of
doing
Financial performance
business
We know our industrial B2B customers
They design, build and maintain industrial equipment and operations, safely and sustainably

Isaac, the Machine & Panel Builder

CORPORATE “I get a great sense of pride when I see a
finished machine go off to a customer
Integrating working the way they want it.”

Mick, the Maintenance Engineer

KEY Consolidating “I’m holding everything up by not
getting machines back online, it
could cost us thousands.”

STANDARD Isabella, the Buyer

Transactional “I work hard to ensure that the
guys have everything they
need, when they need it.”

c. 1.2m customers
 Giving industrial B2B customers what they need
Product
choice
We have built a unique range
of electronic and industrial
products for customers
• >700k stocked products
• >3m non-stocked
• >80k RS PRO products
Distribution centre
expansion has doubled
our capacity in Europe
and Americas
* RS website
Product
and
service
solutions
We have built a portfolio of
services solving problems
and adding value
• c. 20% revenue from service
solutions
• 1.2m DesignSpark members
• Global integrated supply
Solutions across Design,
Procurement, Inventory
and Maintenance
Ease of
doing
business
We have built a technology-
enabled experience powered
by a human touch when
required
• c. 64% digital share
• 15m web visits per month*
• 10k live chats per month*
Built a global, responsive
website with over 15m
visitors per month
Delivered through world-class customer experience
Omni-channel What we offer Voice of the
Customer
7,000 customer
Corporate
interactions per
month across
32 markets

Service
Product
Human

Digital
Key Voice of the
Supplier
Harnessing the
knowledge and
experience of over
Standard
2,500 suppliers
globally
Realising world-class customer
experience creates
competitive advantage
Value equation
Global Customer Count Growth
2019 - 2021

Graph 1
Corporate Key Standard

Global Average Order Value Growth

Becoming first choice
2019 - 2021
is not something we
Graph 2 can award ourselves.
It must be earned.
Corporate Key Standard

Resulting in high quality profitable growth

Our journey to greatness
Understanding our customers’ needs

Our insight allows us to understand and anticipate what our customers need

Product and service

Product choice Ease of doing business
solutions

Data-driven range Accelerated Connected and

optimisation and deployment of services, personalised omni-channel
enhanced capabilities global integrated experience with
to accelerate range supply, new solutions world-class technology
expansion and eco-systems and human touch

ONE BRAND, ONE TEAM, ONE CULTURE

R : Realising world-class customer
experience

World-class
Our journey to greatness
customer • Data led, range optimisation
experience and expansion
through agility • Accelerated deployment
and brilliant of service solutions
basics • Personalised omni-channel
experience
Extending our
wisdom, insight
and data
Abigail Brockbank
Senior Director Data & Insight
Transformation
Darshan Vaghela
Data Sciences Manager

E
Our path to wisdom Wisdom comes from combining people,
knowledge, judgement and data to
uncover rich insight and execute brilliantly

WISDOM

Continue to invest in our data & insights A source of competitive advantage

capability to ensure we stay ahead of our INVESTING unique in this industry, generating a huge
IN OUR DIGITAL
competitors and differentiate ourselves PRESENCE amount of data
CAPABILITY

Driving commercial value and operational Transforming over 100 billion data records
impact through application of insight into insights we can act upon
APPLIED
Monetising our data to drive new revenue OUR DATA 150 data points per customer enable us to
INSIGHTS
streams understand them and their behaviour

THE CALIBRE
OF OUR
PEOPLE

Our people use their deep customer and

supplier experience to make great
decisions
The unique way we operate INVESTING
IN OUR
WISDOM

DIGITAL
PRESENCE
CAPABILITY

APPLIED OUR DATA

INSIGHTS

THE
CALIBRE
OF OUR

We know more about our customers than our competitors do

PEOPLE

Our digital
presence
• Turning data into • Collective industry
meaningful insights The calibre experience
• Understanding cause
Our data of our • Deep customer and
and effect
people supplier relationships
• Predicting likely future • Great judgement and
outcomes decision making
Differentiator
Applying wisdom to become first WISDOM

choice
INVESTING DIGITAL
IN OUR PRESENCE
CAPABILITY

APPLIED OUR DATA

INSIGHTS

THE
CALIBRE
OF OUR
PEOPLE

Commercial

Applying insight, knowledge

and analysis to generate
greatest value as we become Operational
first choice

Revenue
generating
Customer life cycle management
Customer value
High Propensity
Prospects
Predictive model to score
website visitors’ propensity
to convert using
clickstream data to drive
more effective and
targeted paid digital
marketing activity
Prospects
HiPo New
Contacts
Predictive model to
identify high potential
new customers Priority
Matrix
To highlight the biggest
commercial opportunities Significant
across the whole base Decline
Predictive and reactive
Unsupervised clustering models to highlight
to predict longer term high value risk
customer potential
New Develop Retain
Customer life cycle stages
 Driving value through every customer interaction
Data …and algorithms …that generate outcomes …to help drive relevant actions
Marketing

Joined-up and consistent communications / activities

“We know which relevant products we should put in
front of Bob as well as opportunities to cross-sell… we
can also identify the lifecycle stage he is in and guide
him through the journey promoting relevant solutions
Transactions to tie him in”
Commercial

Value based initiatives / strategies

Sales
Customer “I’ve been alerted that this customer is very likely to
Attributes churn… and I can see that he has a very high lifetime
value and high existing spend…. I will contact Bob
Data today”
Science and
Clickstream ML Engine Operational
Customer Services
“I can see Bob is likely to complain about delivery…
he’s been a customer for 5 years and has a high NPS…
‘Bob’ maybe I can offer him some support to deal with the
Product issue before it becomes a problem…”

Revenue
generating Other use case examples…
3rd Party
• Sales / Customer Services – Next best actions
• Stock profiling and demand forecasting – Supply Chain
• Marketing mix modelling / Attribution modelling
• Much more specific and targeted promotion of
solutions
• ‘Always on’ marketing based on data / scientific
models
59
Our insight driven INVESTING
IN OUR
WISDOM

DIGITAL
PRESENCE

organisation journey
CAPABILITY

APPLIED OUR DATA

INSIGHTS

THE
CALIBRE
OF OUR
PEOPLE

Commercial

• Data
• Technology Operational First choice
• People

Revenue
generating
 E : Extending our wisdom, insight and data

Our journey to greatness

Data driven • Continuously growing our wisdom
insights support
Making consistently better decisions
all of our key •
than our competition
decisions
• Creating unique predictive insights
Accelerating to
a solutions-led
innovative
business
Doug Moody
Chief Services Officer
Simon Hilton
SVP Business Development & Marketing

A
Accelerating to
a solutions-led
innovative
business
Doug Moody
Chief Services Officer
Simon Hilton
SVP Business Development & Marketing

A
Customers seek simplicity and reduced process costs…

DESIGN PROCURE BUILD MAINTAIN

£ !

2:1
PAY IDENTIFY
supplier a requirement

INVOICE 09 01 SEARCH
& find
match &
product
approval
08 02

RECEIVE 07 03 REQUEST
& book in a quotation
delivery

06 Process cost Product cost

04
05
PLACE RAISE
your order a purchase
order
REQUEST
authorisation
Customers seek simplicity and reduced process costs…

DESIGN PROCURE BUILD MAINTAIN

£
PAY
!
IDENTIFY
supplier a requirement MAINTAIN CONTRACT

INVOICE 09 01 SEARCH
& find UPGRADE
09 01 PROJECT
match &
product MANAGE
approval
08 02 08 02

RECEIVE 07 03 REQUEST 07 03
& book in a quotation REVIEW COMMISSION
delivery

06 04 06 04
05 05
PLACE RAISE STOCK OPTIMISE
your order a purchase
order
REQUEST MONITOR
authorisation

We can create significant value for our customers across the life cycle
 Solutions make us first choice

PRODUCTS SOLUTIONS SERVICES

Becoming first choice

Suppliers Customers RS Group
VALUE

Product support Omni-channel experience Loyalty

Optimised use of products Lower total cost of ownership Additional recurring revenue
Customer knowledge Improved productivity Increased share
Industrial focused partner Enhanced sustainability Insights
 Being solutions led: seizing and
expanding the opportunity

INNOVATE
Disruptive business models
Solutions revenue

“You know the parts I buy regularly and

EVOLVE
you know the manufacturer really well, let
Value propositions
me know when something’s going
obsolete and we can proactively plan”
GROW
(Maintenance Engineer, Germany)
Services Innovating solutions
“Know our industry. Provide the solutions to solve customers’
to our real-world problems in the way you
do business with us” (Electronic Design challenges
Engineer, UK)
Breadth of solutions
Solutions to span our customers’ life cycle

Design Procurement Inventory Maintenance

Specify
Maintain Protect
Compare
Research Install Improve

Procure
Partner

• Calibration
• Technical Support • RS eProcurement Solutions • RS ScanStock ® • Lubrication
• Virtual Demo Lab • RS PurchasingManager™ • RS VendStock ® • Condition Monitoring
• Prototyping services • RS ConnectPoint® • RS Plus™ • Oil Analysis
• DesignSpark • MyMRO • Stores Management • RS Industria
Our solutions highlights

RS Industria asset monitoring

Virtual Demo Lab scalable design support

Integrated supply indirect business

process outsourcing

Procurement & Inventory Solutions

Creating value
through innovative
and digitally-enabled
solutions
 Painful to efficient with our integrated supply solutions
Direct simplicity Indirect pain points

DIRECT
INPUTS

▪ People ▪ Processes
▪ Procurement ▪ Systems
▪ Inventory ▪ Costs
ADD ▪ Transactions
INDIRECT
VALUE Integrated
INPUTS
supply

▪ 99.9% on time stores delivery

▪ 80% less transaction cost
▪ 40% less overhead cost
▪ £250k working capital reduction
PRODUCT ▪ £2m product and process savings

20% Transactions 80% Transactions 10% Transactions

80% Spend 20% Spend 16% Spend

 Integrated supply solutions
stimulates value creation…
Insights allows
RS Group
to better integrate:
“You know the parts I buy regularly and
you know the manufacturer really well, let
Products
me know when something’s going
Insight Services
obsolete and we can proactively plan”
(Maintenance Engineer, Germany) Partners

and produce:

Innovation
New value streams
Recurring revenue

…by moving from transactional

to long-term strategic partner
Solutions drive partnership and significant
revenue growth
UTILITIES PROCESS
MANUFACTURER

GROW
v v Service solutions

Apr- Apr- Apr- Apr- Apr- Apr- Apr- Apr- Apr- Apr-
17 18 19 20 21 17 18 19 20 21

v
EVOLVE
GLOBAL DISCRETE Value propositions
ONLINE MANUFACTURER
RETAILER
v v
INNOVATE
Apr- Apr- Apr- Apr- Apr-
Apr- Apr- Apr- Apr- Apr-
17 18 19 20 21
Disruptive business models
17 18 19 20 21
: Solution implementation
 A : Accelerating to a solutions-led
innovative business

Integrated Our journey to greatness

solutions • GROW existing services

creates long- • EVOLVE value propositions

term customer
• INNOVATE to disrupt
value and
loyalty
 Accelerated by innovation developed around four key themes

DIGITISATION DATA SUSTAINABILITY TECHNOLOGY

Creating new services Gathering site & asset Addressing Exploring emerging
to enhance data and turning it challenges with technology to find
digitisation in the into insight that solutions to improve new commercial
workplace creates value outcomes opportunities

e.g. digital tools for industrial e.g. intelligent asset e.g. energy management e.g. digital replicas; mixed
engineers management via RS Industria and renewables reality manufacturing

Delivered through a global ecosystem built to create long-term competitive advantage

Internal innovation Strategic innovation Open innovation and
owned by RS partnerships incubator network
Transforming our
executional
capabilities
Sean Fredericks
President, Asia Pacific
Ellen Li
Chief Finance Officer, Asia Pacific

T
Case study: Asia Pacific

China Japan
market size: market size:
£82bn £29bn

South East Asia

market size: £9bn

Australia &
New Zealand
market size:
£4bn
78
 Setting business fundamentals for sustainable
high performance
Purpose-led culture
Focus on having the right people
for the job with the right tools
Create an empowering culture
Process
Enhanced accountability and
decision-making
Improved employee
engagement
66% of leaders promoted
Results
internally
Diverse workforce with 64%
women, across 19 nationalities,
with 42% in leadership roles
Operational efficiency
Improve efficiency and building
organisational capability
Fully aligned operating plans
and individual performance
objectives
Local execution leveraging
Group experience through
Centre of Expertise
Lean and scalable model
SG&A improvement
Growth accelerators
Design a local, value-driven
strategy
Execute locally on the ground
by people who know their
market, culture and business
Developing services strategy
Aligned go to market strategy
Enhanced customer experience
…and keep raising the bar
Financial performance
Drive simplicity, transparency
and accountability of results
Clear accountability and results
tracking
Celebrate the success as one
team
Improved revenue and
operating profit
Success stories: reducing our carbon footprint

• Reducing our carbon footprint is one

of our four global goals of our ESG
2030 action plan

• We moved most inter-group freight

from air to sea, reducing our CO2
emissions

• Additionally, COVID-19 has

significantly increased freight costs,
making low value orders unprofitable

• A small order handling charge was

implemented, driving a higher
average order value and
significantly improving freight
recovery
The Asia Pacific story: business health
indicators
Revenue (£m) Net Promoter Score (NPS)
• Focus on resetting good
business fundamentals
to deliver a strong
performance despite
COVID-19

• Aligned strategy has

(1)
17/18 18/19 19/20 20/21 21/22E 17/18 18/19 19/20 20/21 21/22

driven significant Operating profit margin (%) Employee engagement

improvement in
employee engagement

• We continue to evolve
to ensure we stay
ahead of the market
(1)
17/18 18/19 19/20 20/21 21/22E 18/19 19/20 20/21 21/22

1. 2021/22E reflects consensus estimates. Source: electrocomponents.com/investors.

 T : Transforming our executional capabilities

Our journey to greatness

• Enhanced customer experience
Execution is
key to our • Expanded product and service
solutions portfolio
success
• Scalable operating model
Break
Our Journey
To Greatness
Investor Event
30 March 2022
We are making
amazing happen
for a better world
Andrea Barrett
VP Social Responsibility and Sustainability
Creating long term value for all our stakeholders

Empowering and exciting our

people to drive our journey to
greatness

Guiding future investments

with confidence in our A strategic partner enabling our
strategy and strong ESG
Our customer’s ESG goals
approach vision:
First
Choice

Building skills with young Positively positioning our supplier’s product

engineers and fostering and service solutions to customers and
sustainable innovation raising supply chain standards
 Strong progress against our ESG goals
Championing Empowering Doing business
Advancing
education & our people responsibly
sustainability
innovation
TODAY
• 62% reduction in Scope 1 • 200+ universities supported • Global employee • Signatories to the UN
and 2 emissions since worldwide to build skills engagement score: 75 Global Compact
2014/15 and driving product sales
• 44% Board are female • New ethical trading
• Partnered with The including our Chair declaration and
• Science based targets
Washing Machine Project partnership with Sedex
• 67% renewable electricity

TOMORROW
• Cleaner and greener • Global engagement of • High-performance, • ESG performance
distribution model. Net young engineers and purpose-led culture, objectives for strategic
zero by 2030. innovators via universities diverse team driving our suppliers
and DesignSpark journey to greatness
• Sustainable product and
service solutions

ESG performance objectives to be added to our global annual incentive programme

Top tier ESG ratings recognise our progress
ESG ratings and disclosures Frameworks and disclosures

• Company of the Year: plc awards

• Sustainalytics rating: Global top 50 ESG
companies
• MSCI ESG rating: A
• CDP Climate change leadership score: A-
• EcoVadis rating: Gold medal
• FTSE4Good Index score: 3.2/5
 Helping our customers be more sustainable

Design Build Maintain

Specify
Maintain Protect
Compare
Research Install Improve

Procure RS Industria condition

Partner monitoring optimises
DesignSpark hot bed of sustainable operational performance
engineering and design for c. 1.2m and sustainability
engineers and innovators RS sustainable product solutions help
customers cut energy and carbon from their IESA and Synovos integrated
operations supply makes supply chains
more efficient
Three key ways our purpose and ESG is driving
our journey to greatness

1. Strong purpose and 2. Ambitious 2030 ESG 3. Focus on offering

ESG approach is creating action plan is delivering product and service
stakeholder value and results and receiving solutions that help our
differentiation recognition customers be more
sustainable
Acquisitions will
accelerate our
organic ambitions
Michael Cramb
SVP Corporate Development
Where we have come from: then and now
Six years ago:
• Decades off the field / no experience
• Not on sellers’ radars
• No target list
• Limited firepower
• No investor mandate
M&A was something we read about
in the papers after the event
Fast forward to today:
• Strong organic track record
• Back on the field with
acquisitions
• Clear, prioritised view of
targets and markets
• Growing M&A and
integration capabilities
• Firmly on sellers’ radars
• Very significant firepower
Back in contention
Strategy led prioritisation

M&A decision linked

directly to strategy:
• Attractive market opportunity?
• Make or buy?
• Value creation potential?
• Availability?

Buy Build
Clear criteria help maintain discipline

Key focus areas:

1. Product and service solutions
2. Product expansion
3. Geographic expansion Good Sound
strategic acquisition
fit economics
Disciplined approach
• Shareholder value,
not accounting driven
• Culture fit critical
• ESG lens on every transaction
Value
creation Target can be
sweet successfully
spot integrated

Culture eats synergies for breakfast

Balanced track record
Product and
service Product Geographies
solutions
May
2018 
£25m
Jan
2019  EBITDA acquired

10x
Dec
2020  average EBITDA
multiple
(pre synergy)
Jan
2021   Good mix
of rationales
Feb
2021


We have seen significant change over the last 6 years in intention,

capability and capacity
Our acquisition pipeline is full of exciting
opportunities
• Network drives opportunities
• Best opportunities regional with very few global
• See greatest opportunity today in:
• Americas Hundreds
on radar
• Product and services solutions
• Constantly review small number of very Tens
large targets of contacts

• Last 12 months no transactions reflects

disciplined approach 10-15
close looks
• Many attractive opportunities: with £2bn+
of EBITDA coming to the market from more
than 20 businesses over next 18 months c.3 active discussions
2/3 off market
Acquisitions will accelerate
our organic ambitions

We remain Our journey to greatness

disciplined • Exciting pipeline

but excited • M&A increasing role in strategy

about the
• Many opportunities under review
opportunities
we see
Journey to greatness:
Driving stronger revenue
and high-quality
profitable growth
David Egan
Chief Financial Officer
 Long-term track record of strong performance
through the cycle
Revenue (£m) Adjusted operating profit (£m)(1)
3000 400
• Consistent growth in
revenue, profit margin 2000
300
and earnings through
200
cycle
1000
100

• Profitable growth 0 0
illustrated by 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22E (2) 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22E (2)
expanding margin
profile
Adjusted operating profit margin (%)(1) Adjusted earnings per share (pence)
15% 60
• Consensus estimates:
10% 40
• 31% EPS growth
on a two-year 5% 20
comparative
• 58% EPS growth on 0% 0
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22E(2) 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22E (2)
a one-year basis
1. Numbers pre 19/20 not restated for adoption of IFRS 16.
2. 2021/22E reflects consensus estimates. Source: electrocomponents.com/investors.
 Consistent cash generation and balance sheet
resilience drives ROCE and shareholder returns
Adjusted free cash flow (£m)(1) Net debt to adjusted EBITDA (x)(1)
160 2x
• Cash generation
provides financial 120

flexibility
80 1x

• Well capitalised 40

0 0x
• Drives returns on 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22E
(3)
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
H1
capital and
shareholder returns
Return on capital employed (%) (2) Dividend per share (pence)
30% 20

15
20%
10
10%
5

0% 0
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22E (3)
H1
1. Numbers pre 19/20 not restated for adoption of IFRS 16.
2. ROCE based on monthly average capital employed from 2016/17.
3. 2021/22E reflects consensus estimates. Source: electrocomponents.com/investors.
The building blocks of our strategy
are unchanged
Improve operating

The RS Way efficiencies

Drive geographic Stronger
expansion revenue
Increase product to drive high
and service solutions
quality
Improve customer
experience profitable
Grow B2B customer growth
base
Develop specialist
own-brand
Broaden product
range
Strengthen financial
position

Increased confidence to capture greater opportunities

1
0
5
RS Group will deliver a powerful combination of
stronger revenue growth and high quality returns
Driving stronger high Maintaining our strong return
quality profitable growth discipline

Targeting stronger Delivering >20% ROCE

revenue growth

Strong cash generation

and conversion

Increased focus
Robust working capital control
on M&A

Well invested capital

and operating base
Mid-teen adjusted
operating profit M&A to drive revenue synergies
margin target and comfortably beat cost of
capital by year three
Capital allocation will prioritise investment to
accelerate high quality growth
• Targeted investment to accelerate profitable growth,
prioritising:
1) organic investment
Investment for future 2) inorganic opportunities with required returns which
growth opportunities comfortably beat cost of capital by end of year three
• No significant increase in operating costs and capital
expenditure required

• Strong and resilient balance sheet

Stable balance sheet • Net debt to adjusted EBITDA up to 2x on acquisition

• Progressive dividend policy

Shareholder returns
• Share buybacks or special dividends as and when appropriate
 Delivering our strategic ambitions are
encapsulated in our scorecard
Cultural transformation: Operational efficiency: Growth accelerators: Financial performance:
High-performance, World-class capability Compelling value proposition Stronger profitable growth
purpose-led culture and execution and customer experience

⚫ High-performance teams ⚫ Scalable global network
⚫ Purpose driven culture ⚫ Best in class purchasing
⚫ Keep everyone safe & supplier management
⚫ Lean processes
⚫ Increase diversity
⚫ Agile technology
⚫ Driving sustainability
- for a better world ⚫ Data and insight led
to drive efficiencies
⚫ Brand recognition
⚫ Best omni-channel
experience
⚫ Broad product portfolio
⚫ Compelling own-brand
offer
⚫ Product and service
solutions portfolio
⚫ Innovate for the future
⚫ Stronger revenue growth
⚫ Strategically aligned
acquisitions to
accelerate growth
⚫ Mid-teen adjusted
operating profit margin
⚫ 30% adjusted operating
profit conversion
⚫ >20% ROCE

⚫ Value accretive M&A ⚫ Strong cash conversion

1
Our scorecard sets out our action plan which is used to drive accountability 0
8
Our value generating opportunities

1. 2. 3. 4.
There is enormous Our differentiated We are making Acquisitions
growth opportunity business model amazing happen will accelerate
with <1% share will improve further for a better world organic growth
of a c. £400bn+ on our Journey with our high- and comfortably
fragmented market to GREATness performance, beat our cost of
purpose-led culture capital within
three years

We are more confident in delivering stronger revenue and high-quality profitable growth
enhanced by strategically aligned acquisitions with a mid-teen adjusted
operating profit margin and at least 20% ROCE
Summary:
Our journey in 5’
Chris Westfall
Close
Lindsley Ruth
 We have greater confidence
in our long-term opportunity
My focus is to:

ONE BRAND, ONE TEAM, ONE CULTURE

• Significant change in our culture and mindset

• Well positioned within a changing market

• Continuing our strategic plans to become

great and fulfil our vision of being first choice
for all stakeholders

• We are ready to fully capitalise on our

position and strengths to become a great
business
 A Company’s Dash – Linda Ellis
There is a date that marks the
beginning followed by a date
seldom foreseen, and a single
dash to represent what happens
in between.
Throughout the “dash” of a
company, generations take their
turn -- and history shows,
successful are those,
who adapt...
and grow...
and learn.
copyright 2022
Many have come before us,
and many will follow when we
leave.
We are one era of our business
with high goals to achieve.
When we focus on what’s
important:
true priorities at-hand, we realize
we’re blessed, as we invest in our
people, our product, our brand.
Giving back to the community
while building prosperity and
growth, creating a culture that
demonstrates how a company can
do both.
We are each a link in a chain
made strong by our connection.
Together, we weather the winds of
change that blow in our direction.
It’s true, we seek the profit,
thus, we won’t deny the cash,
but all that matters in the end
is the way we spent our dash.
Questions
Our Journey
To Greatness
Investor Event
30 March 2022