Interim Results6 months to June 30th, 2012

Highlights

Group revenues up 5% to €1.05bn

Exchange rate benefit

Underlying operating profit up 19% to €31.3 million

Underlying profit before tax up 18% to €23.8 million

UK merchanting revenues up 4%

Irish merchanting revenues fall by 9%

Self-help measures improve profitability

2

Revenue by Geographic Area Revenue by Business Segment

€1.05bn €1.05bn

Revenue by Business Segment and Geography

Manufacturing2%

Retailing9%

UK76%

Ireland 23%

Belgium1%

Merchanting 89%

3

Operating Environment

Uneven recovery in economy

Economy in mild recession

Consumer spending weak due to pressure on take-home pay

RMI Market reasonably stable despite macro economic weakness

Merchanting UK

Merchanting Ireland

Retailing

Modest economic growth driven by exports

Further contraction in merchanting volumes to historically low levels

Weakness in DIY Market due to the austerity programme, deleveraging by consumers and adverse weather conditions

4

Merchanting UK Merchanting Ireland

Retailing

Self-Help Measures

Cost reductions and development of the hire division in Buildbase

Sales initiatives in Plumbase to increase market share

Developing turnover in more recently opened Selco stores

Integration of specialist businesses engaged in the distribution of indoor construction products and bathroom products

Significant cost reductions

Branch consolidations

Examinership - Atlantic Home Care

Manufacturing

Closure of CPI

5

UK Merchanting

Revenue 780,547 712,648 9.5% 3.8%

Operating profit 37,532 31,859 17.8% 11.6%

Operating margin 4.8% 4.5%

2012 2011€’000 €’000

% Change

ReportedConstant Currency

Economy has slipped back into a mild recession

Lending to households has tightened and interest costs have moved higher

Labour market resilient – private sector employment up

Housing transactions increased

Trading

Merchanting market declines by an estimated 4%

Growth in average daily like for like turnover of 1.4%

Business traded ahead of the market

Increased turnover and profit in Buildbase, Selco, Plumbase and Macnaughton Blair

Specialist brands exposed to housing and infrastructure markets performed strongly

Market

6

Irish Merchanting

Revenue 136,369 149,399 (8.7%)

Operating profit 897 1,060 (15.4%)

Operating margin 0.7% 0.7%

2012 2011€’000 €’000

% Change

Economy forecast to show modest growth in 2012

Domestic demand weak as household spending continued to decline

Housing market has declined to an unsustainable level - completions forecast at 5,000 units this year

RMI market down due to fall in discretionary spending

Turnover declined by 8.7%

Improved market position – a number of competitors reduce capacity and exit market

Gross margin maintained despite competitive pressure and overheads cut by 10% (€4m)

Profitability close to last year’s level despite sharp fall in turnover

Branch consolidations in Dublin, Cork and Limerick

TradingMarket

7

Retailing

Revenue 98,223 112,085 (12.4%)

Operating loss (3,523) (431)

–

2012 2011€’000 €’000

% Change

Retail spending continued to decline

Weak labour market and falling disposable incomes weigh on demand

Improvement in consumer confidence not translating into increased spending

Trading

Turnover down by 12.4%Trading affected by decline in consumer spending and heavy rainfall in April and June which reduced demand for outdoor productsFall in transactions by 10% - average transaction values down by 2.4% - change in mixGlasnevin and Blanchardstown stores extendedExaminer appointed to Atlantic Home CareAtlantic Home Care operating loss of €2.2m

Market

8

Belgium & Manufacturing

Economy to flat line in 2012 – performing ahead of other European economies

New housing and RMI markets weaken

Turnover growth from two acquisitions completed in the second half of 2011

Other acquisition opportunities under review in consolidating market

Current annualised turnover of JV is €55m

Manufacturing

Division returned to profitability

Volumes lower in UK mortar market due to fall in housing starts and adverse weather conditions in the second quarter

CPI closed

Continuing manufacturing business in Ireland operated at close to breakeven

Belgium

9

Half-Year Results Pre - Exceptional Items & Amortisation

Revenue 1,054.5 1,008.1 4.6% 0.6%

Operating profit 31.3 26.2 19.3% 11.5%

Operating margin 3.0% 2.6% –

Finance expense (net) 7.4 6.0 23.3%

Profit before tax 23.8 20.2 18.1%

Adjusted earnings per share 8.1 cent 7.2 cent 11.6%

Dividend 3.0 cent 2.75 cent 9.1%

2012 2011 €m €m

% Change on prior period

Reported Constant Currency

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Revenue Analysis

1,008

1,055

Merchanting

UK Merchanting

€m

11

Operating Profit Analysis

26,213

31,262

Merchanting

€’000

* % movements are against H1 2011 12

Cash Flow

31

55

44

€m

13

Free Cash Flow and Net Debt

226

201

14

Net Debt & Shareholders’ Equity

Gearing 52% 50% 35% 26% 23% 20%

2007 2008 2009 2010 2011 2012

15

Total Group debt facilities amount to €452m of which €112m was undrawn at 30 June 2012

Weighted average maturity profile of 3.4 years

Offer to roll €85m to 2015*

Debt Facilities Maturity Profile

16

Debt Covenants

EBITDA - 12 month rolling adjusted €101.2m €101.5m €97.4m

EBITDA interest cover 7.1 times 7.7 times 7.2 times

Minimum interest cover 3.0 times 1.0 times 3.0 times

Shareholders’ equity (as defined) €1,071m €1,131m €1,094m

Minimum shareholders’ equity €789m €788m €783m

Debt to equity ratio 19% 22% 21%

Debt to equity ratio limit 85% 85% 85%

Significant headroom on covenantsNet debt reduced to €200.6m at 30 June 2012 (31 December 2011: €225.9m)Cash deposits were €138.5m at 30 June 2012 (31 December 2011: €134.6m)Undrawn committed revolving term bank facilities were €112m at 30 June 2012 (31 December 2011: €120m)

First Half First Half FY2012 2011 2011

17

Summary Balance Sheet

Property, plant and equipment 583.2 581.1 2.1

Intangibles 578.4 568.6 9.8

Financial assets 0.1 0.1 –

1,161.7 1,149.8 11.9

Working capital 166.4 172.6 (6.2)

Income and deferred tax (38.3) (37.8) (0.5)

Retirement benefit obligations (57.7) (33.6) (24.1)

Provisions (40.6) (42.3) 1.7

1,191.5 1,208. 7 (17.2)

Net debt (200.6) (225.9) 25.3

Shareholders’ Funds 990.9 982.8 8.1

30 June 31 Dec 2012 2011 Change€m €m €m

Change€m

18

Acquisitions and Developments

Macnaughton Blair acquired Brooks two branch merchanting business in Northern Ireland

The Belgian JV benefitted from two single branch acquisitions completed in second half of 2011

Two merchanting branches were opened under the Jacksons and Plumbase brands

Selco opened a new branch in Hanworth, South East London in July and further branch openings are planned

19

Strategic Focus

Continued margin growth in UK merchanting branches

Development of Selco branch network

Selectively participate in further consolidation in UK merchanting market

Responding to challenging market conditions in Ireland

Development of merchanting business in third geography

Maintaining strong cash generation and balance sheet

20

Second Half Outlook

Outlook for the UK economy is uncertain

Consumers to benefit from low inflation and interest rates

UK RMI market conditions to remain challenging

Demand is expected to remain weak in Irish merchanting and DIY markets

Emphasis on self-help measures to increase operating profit

21

Summary and Conclusion

Continued operating profit improvement in difficult markets

Portfolio of resilient businesses with improving market positions

High operating cash flow, reduced cost base and spare capacity in branch network

Good platform to benefit from any recovery in market conditions from cyclical lows

22

Locations

Merchanting UKMerchanting Ireland

DIY Ireland

.co.uk

Belgium

Manufacturing

23

Supplementary Information

Historic Lows

Housing Starts & Completions – GB 2002 - 2011

Significant pent-up demand

182,390

220,810

168,120

211,910

129,260

106,660

129,350

134,980

25

Historic Lows

House Completions – Ireland 1990 - 2012

Current activity is at an unsustainably low level

26

Estimated UK Merchanting League Table

Sector Turnover £12 billion plusIndependents £4.6 billion plus

3rd Largest Builders Merchant

Circa 2,000 independents

27

Operating Margin History (Core – Before Central Costs)

2007 7.3% 10.8% 8.7%

2008 4.5% 5.5% 4.9%

2009 3.2% -1.7% 1.6%

2010 4.1% 0.4% 3.0%

2011 4.1% 0.7% 3.2%

2012 (H1) 4.8% -1.3% 3.4%

2011 (H1) 4.5% -0.4% 3.2%

*Includes Belgium from 2011

Year UK ROI Group*

28

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For Further Information

Gavin Slark Chief Executive Officer

Colm Ó Nualláin Finance Director

Charles Rinn Group Financial Controller / Secretary

Address: Grafton Group plc,Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18

Telephone: +353 1 216 0600

Fax: +353 1 295 4470

Email: email@graftonplc.com

Web: www.graftonplc.com