RS : Trading Update (Presentation)

Q1 trading

to 30 June 2022

Continued strong performance share gains

7 July 2022 RS Group plc

(formerly Electrocomponents plc)

Disclaimer

Q1 Trading Update to 30 June 2022

Forward-lookingstatements: 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 RS Group 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 RS Group 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 RS Group 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, RS Group plc has no intention or obligation to update forward-looking statements contained herein.

2

7 July 2022

Q1 trading update to 30 June 2022

	Like-for-like revenue growth1
	Q4 to Mar 2022	Q1 to Jun 2022
EMEA	19%	16%
Americas	33%	24%
Asia Pacific	23%	13%
Group	23%	18%

Strong revenue growth

• Group like-for-like revenue: +18%
• Industrial product ranges: +21% like-for-like revenue
• RS PRO: +21% like-for-like revenue

Pricing and cost focus

• Margin benefit from improved pricing and discount model, product management work
• Strong cost control and operating leverage helping offset inflationary pressures
• Ongoing investment in operational capabilities to support growth

Responding to external pressures

• Improved pricing model
• Tight inventory commitments
• Ongoing disciplined cost management
• Journey to Greatness growth initiatives

Q1 Trading Update to 30 June 2022

7 July 2022

Note:

3

1. Like-for-like revenue growth is growth in revenue adjusted to eliminate the impact of acquisitions and the effects of changes in exchange rates and trading days year on year. Acquisitions are only included once they have been owned for a year, at which point they start to be included in both the current and comparative periods for the same number of months. 2021/22 is converted at 2022/23 average exchange rates for the period.

Acquisition of domnick hunter

1. leading distributor and service provider of major air compression, purification and filtration products in Thailand

		 Family-run business established in 1993
		 Headquartered in Bangkok, Thailand
The business			Largest independent air specialist company in
			South East Asia
		 Consideration: c. £10 million debt free, cash free
		 c. 23% of revenue from service solutions
A strong		 Parker Hannifin distributor and service partner
		(c. 35% of purchases)
service			Installation and servicing capabilities
solutions offer
		Equipment renting division
		
		 Technical expertise and capabilities
Acquisition		Market share opportunity
	Expansion of service solutions offer
rationale
	Accelerate growth within Asia Pacific
		

Q1 Trading Update to 30 June 2022	4
7 July 2022

RS Group embraces changing trends

Distribution trends*

Embrace the digital revolution

Move beyond product distribution

Become leaner and execute flawlessly

Build scale where it matters most

Compete smarter

2008/09	Metric	2021/22
36%	Group revenue from digital channel	62%
<10%	Group revenue attributed to service solutions	23%
19.4%	Adjusted operating profit conversion ratio	28.4%
18.5%	Return on capital employed	28.7%

Data, insight & wisdom | Own-brand products | Breadth of product categories

We are well positioned and able to adapt with the rapidly changing market

Q1 Trading Update to 30 June 2022	5
7 July 2022	* The coming shakeout in industrial distribution - McKinsey & Company, April 2019