SLIDE 1 – AGA FOODSERVICE GROUP, PRELIMINARY RESULTS 2003

WBM :

SLIDE 2 – PRELIMINARY RESULTS PRESENTATION

Good morning and welcome to our preliminary results presentation. This morning I shall report on a sound trading performance and what we have achieved with the acquisitions we have made over the last 3 years. Shaun will discuss our financial performance and our proposals to use financial resources effectively. Pivotal to our progress in 2004 will be the emerging benefits of our two-year new product development plan, epitomised by the Falcon Infinity Fryer and the electric Aga – you can see here today. Stephen will explain why they are so significant to the Group. I will set out our overall plans and comment on current trading and the big ideas for the next 3 years - making the Group an upscale cooking and refrigeration appliance major and being the commercial appliance company of choice for businesses with a focus on energy, the environment and CSR commitments.

SLIDE 3 – 2003 : SUMMARY OF PERFORMANCE

A key feature of 2003 was the excellent progress made in the UK by the consumer products businesses, particularly Aga-Rayburn and Rangemaster. Their progress more than compensated for the downturn at Domain in the US . In foodservice, the geographical mix was reversed with a strong US performance balancing weak European numbers caused by major accounts in the supermarket and restaurant sectors minimising new investment. Consequently, the operating profits were ahead but not quite as far ahead as we had envisaged at the start of the year. Patchy markets did not put us off pressing on with our investment programmes and integration processes to create a strong business structure and product ranges, to the benefit of the long term even though we knew we were not optimising short term operating results.

SLIDE 4 – TURNOVER & OPERATING PROFIT 2003

A rain check at the end of the year encouragingly still showed we achieved healthy growth - 19% increase in turnover, 7% ahead at the operating profit level and EPS up 10%. We finished the year with a strong balance sheet having made major commitments to higher inventories to support international sales, the research and development programme and having spent £16.1 million on acquisitions. You will also note that turnover has doubled since we sold the Pipes business. In presenting the businesses we now divide the operations into four segments – UK and European Consumer, US Consumer, UK and European Foodservice and US Foodservice - the pattern we will use for segmental reporting under International Accounting Standards from 2005.

SLIDE 5 – UK & EUROPEAN CONSUMER (I)

The European Consumer operations were the best performers in 2003 with turnover ahead 12% (all organic) and operating profits 21% ahead at £17.5 million. The operations show a strong 3 year growth trend in both operating profits and return on sales, highlighting the benefits of the resources committed at Aga and Rangemaster for product development and marketing in that period.

SLIDE 6 – UK & EUROPEAN CONSUMER (II)

Aga-Rayburn's profits have increased 70% in the last 3 years on turnover up 30%. Aga-Rayburn achieved Project 10,000 in terms of both sales and orders (up nearly 10% on 2002) with 10% of sales coming from the Six-Four Series launched in 2002. 18% of unit sales were outside the UK . The average unit selling price of heat storage Agas increased over 3% - showing Aga has pricing power - as customers continued to trade up to our larger 3 and 4-oven models. Aga's own retail shops did well and Aga Shops within Fired Earth did particularly well. Our cookware business has, for example, grown over four times in the last three years to be a vibrant £5 million product grouping led by Aga branded products and accessories.

Rangemaster was also a noteworthy success. From being a weak business in 2000/2001, which led to the restructuring in 2002, it is now making over 6% return on sales. The improvement comes from the focus on higher value added products backed by quality marketing and exciting new product introductions. Our mould-breaking 90cm double oven models have become a key signature. Fired Earth saw revenue up 11%, which is above the increase in operating profits. At Fired Earth the 10 inspirational stores, which offer our broadest product range incorporating Aga shop-in-shops, were the best performers, driving growth in turnover.

SLIDE 7 – US CONSUMER

In the US, profits fell. Domain's contribution was down from £2.5 million to £0.5 million. The cost of Aga Ranges was £0.5 million and this netted out the contribution from Northland-Marvel acquired in September 2003. We still implemented our plans for Domain even though 2003 proved the worst year for a generation for the home fashions industry. We have invested in 5 major new stores over 15 months adding 25% to selling space while keeping to the existing distribution infrastructure and overhead cost base, and bringing the chain to 31 stores. This expansion will provide renewed impetus in 2004. In 2003, LFL stores' sales fell 7% in line with the market, although the total business was flat year on year. Domain is increasingly looking to source from the Far East and this will positively impact later this year. Aga Domain stores, of which 12 have Agas - 7 with kitchen demonstration areas - are catching the imagination. They are part of the US national structure which incorporates over 100 live Agas – which generated record sales of over 600 Agas in 2003. With the Six-Four Series and the Rangemaster Elan now available to sell as part of the overall US range and with an effective lead management system in place, Aga is now firmly established in the US. Northland-Marvel continues to trade well and has enhanced our status with dealers as a US cooker/fridge business comparable to SubZero and Viking. Our carefully prepared and paced plan to move into US markets is in good shape.

SLIDE 8 – UK & EUROPEAN FOODSERVICE

UK and European foodservice markets were quiet. Our central objective is to reproduce the breadth of product and market position we have in some areas, in all our markets. Our plan is to escape from being simply a cyclical player and to create a stronger business better able to address the vagaries of markets and major customer spend. The 2003 results, which saw profits go from £9.5 million to £8.9 million on turnover up from £106.7 million to £143.3 million, show we are not there yet. In 2003 we had to deal with low spending across Europe by supermarkets and in the UK by pub/restaurant chains as they busied themselves with sector reorganisations. Point of difference comes from product and from service where in 2003 we won new work with Sainsbury's, Somerfield, Tesco and Whitbread. Service provision fits in with our pitch to offer “know-how”.

On the continent we worked closely with Bongard to strengthen its operations in testing markets. We de-layered senior management, focused on production efficiencies and moved out of a loss-making product area. One-off costs incurred were £1.5 million – giving profits for the continuing Bongard operations of £2.7 million. Ahead of the prior year.

SLIDE 9 – US FOODSERVICE

In the US, we saw the benefits of prior year reorganisations and investment. Operating profits were £5.4 million on turnover of £42.4 million up from £3.5 million on turnover of £43.0 million. Good progress was seen at Victory, the refrigeration operation, which enjoyed its best year since acquisition in 1999. Belshaw, the doughnut equipment maker, continued to perform well with its new innovative thermoglaze lines, which heat frozen doughnuts. The overall effort to provide a comprehensive bakery offering using the strengths of the European manufacturing operations has been seen in the ranges now available to our US customer base.

To examine how these numbers translated into the overall reported results, I shall hand over to Shaun.

SMS

SLIDE 10 – PROFIT & LOSS ACCOUNT (I)

Good morning. Looking at the Profit & Loss Account, the acquisition numbers, turnover of £8.3m and profit before goodwill amortisation of £0.7m, relate to the contribution of Northland-Marvel from the date of its acquisition on 6th September.

There are some detailed features of the accounts worth noting. As stated at the half year, we hope to maintain a reasonable flow of income from other sources - seen in 2003 in a property gain of £1.3 million on the sale of Falcon's factory in Scotland. 2003 was a year in which we invested further in our core businesses. To achieve ambitious sales targets requires new product development and high research and development expenditure. As part of this and in line with some other major appliance manufacturers, and in anticipation of International Accounting Standards which will be mandatory
by 2005, we have capitalised project specific development costs under SSAP 13 - totaling £2.7 million in the year. The major investments were by Aga and Falcon on the electric Aga and the Infinity Fryer respectively. We have restated prior year figures by £0.6 million as a consequence. In total we
amortised £0.3 million of capitalised costs in 2003.

The annual goodwill charge rose to £8.0 million in 2003 with goodwill now valued in the balance sheet at £137 million. 'Discontinued operations' is the loss at Becker - the oil oven subsidiary of Bongard closed in the year. The substantial costs of a Dutch social plan have been provided for and form part of the disposal of businesses number.

SLIDE 11 – PROFIT & LOSS ACCOUNT (II)

Moving on from profit before tax and interest of £27.0 million, net interest income was £0.9 million. Cash deposits at the year end totaled £52 million. Most of the cash deposits remain in sterling and are currently invested at an average rate of 4%.

On tax – tax rates remain well below the UK standard rate, reflecting caution in prior years and careful international tax planning. The 2003 charge is cautiously prepared and a complete return to UK standard rates remains unlikely before 2006.

SLIDE 12 – BALANCE SHEET

Net assets employed in the Group have increased to £282 million.

As part of our Bongard reorganisation we discontinued the production and sale of oil ovens by Becker and refocused the team in Holland on selling other Group products. At the same time as providing for the costs of a Dutch social plan, we were able to release some of the provisions carried forward from the 2001 Etex transaction which are no longer required. The balance remains at £10 million and is now principally related to pension charges since the potential tax and legal issues, dating back to the late 90s, and most Etex-related contractual issues are now resolved. Investments have grown to £5.8 million since we have increased our holding in Grange to 40.7%. Net cash in the balance sheet was just under £30 million.

SLIDE 13 – OPERATING CASHFLOW

Looking more specifically at the operating cashflow. In the year, the operating cash inflow was £23.9 million. We invested £17.8 million on capital expenditure, including £5 million on Falcon's new factory. As previously highlighted, most of this cash will be recouped in the first half of 2004. Depreciation increased from £6.7 million to £8.1 million. 2003 is likely to have been a peak investment year with the onus switching to marketing and distribution in the current year, although accelerating programmes to increase production of the Infinity Fryer internationally would alter this. Working capital increased by £10.3 million to support the effort to have stock available in overseas markets to enable our businesses to act as indigenous suppliers. ‘Provision movements' includes £3.2 million in relation to pensions.

SLIDE 14 – THE PENSION SCHEME

Under SSAP 24 the scheme is in surplus. The ongoing charge for current members is around £4.5 million and this is offset by spreading the surplus and by provisions set up in 2001 for this purpose. Turning to FRS 17, assets at the end of 2003 were £634 million whilst liabilities are calculated at £662 million – a gross deficit of £27.9 million down from £65.1 million at the end of 2002 – reflecting the detailed actuarial valuation concluded last summer. It is of note that the net deficit of £19.6 million is less than 7% of the net assets of the Group. The ongoing charge is likely to fall as leavers reduce the pensionable payroll. The cautious asset allocation – only 40% in equities – with bond yields a key factor in determining liabilities, and also cautious demographics set against scheme-specific experience, suggests that the position of the scheme should continue to strengthen steadily in the years ahead. This should mean that, as was the objective right back to 2001, the earnings progression of the business should not be significantly affected by pension funding increases.

SLIDE 15 – INTERNATIONAL ACCOUNTING STANDARDS

Touching now on International Accounting Standards. We have been planning ahead for their introduction and for measuring the comparatives from 2004. We have already addressed segmental reporting - as seen in today's presentation - research and development and pensions. The only other major change for us would be no more amortisation of goodwill through the profit and loss account which last year accounted for £8 million. Overall, we see the new standards as positive for us.

SLIDE 16 – USE OF FINANCIAL RESOURCES

Now looking to our financial resources. We had £30 million in net cash at the end of 2003 and the net worth of the Group was £282 million. We have invested £130 million in acquisitions in the last 3 years and have also made significant capital and development expenditure. We have continued to keep our investment strategy under review. The onus is on maximising returns from the investments made and the timeframe for further investment has, therefore, been extended. We also plan to have a sustained progressive dividend policy and to take opportunities to buy shares back. You will have seen that for the second year running, we have raised the dividend by 20% and that there is scope for further double digit increases. In addition, we will make share buy-backs during the course of 2004. We are maintaining the standard authority to buy back up to 10% of our shares. Some of these shares may be taken into treasury. We continue to investigate acquisition opportunities, particularly where these hasten the expansion of our existing businesses. Taken overall, we would expect that by the end of 2004 we will have net debt on the balance sheet and still have scope, within cautious financial parameters of interest cover and EBITDA to net debt, to sustain progress over the following 2 years of our 3 year plan. I will now hand you over to Stephen to discuss our new products.

S RENNIE

SLIDE 17 – AGA RAYBURN

Thank you Shaun. We are deliberately setting out to be a product-led group in the consumer and foodservice markets.

We now have the strongest product portfolio we have ever had. To succeed in our markets, wherever possible, we must be not, ‘me too' but ‘me only'.

In consumer operations we are establishing ourselves, from our UK base, as a leader and innovator in upscale cooking and refrigeration.

Aga-Rayburn is at the heart of our operations and it has a growing product range. The electric Aga is, we believe, the breakthrough product for us internationally. When solid fuel fell away in the 1950s and ‘60s so did Aga sales, other than in the UK where Aga-Rayburn developed oil and gas versions. Until now, however, there has not been a mainstream electric version. This is now available in 2-oven and later this year in a 4-oven model. It works on a 13 amp plug and has an industrial quality element and thermostat to control the heat. It has no moving parts and requires servicing only once every 5 years. Constraints of flues, the availability of gas and oil and the maintenance required to burn fossil fuels are removed. It is the quintessential Aga. We expect that it will represent eventually one third of UK sales and a majority of overseas sales. We also have a new all-electric ceramic top Six-Four series cooker to create a new electric generation of ‘Iron Age' products. For the first time we have the products to take Aga worldwide.

SLIDE 18 – CONTEMPORARY OPPORTUNITIES

As an appliance producer we want to be in all markets from retro to ultra contemporary. This is seen with Rayburn, whose current advertising focuses on its rural roots but which will be complemented this year with an additional modern styling – the most radical rethink ever for Rayburn – as seen on this slide. It will, still, have the Rayburn benefits of being programmable and having a boiler which will provide hot water and central heating. It should do for Rayburn what we have done for Rangemaster with the arrival of the Elite, which goes beyond current competitive design to redefine the contemporary stainless steel look by providing rounded edges – a technical breakthrough made possible by the investment in 5-axis laser, acquired last year.

We are also bringing the breadth of US refrigeration to Europe . In the US , an ice maker is de rigeur and a wine fridge standard. With Marvel we have the best available products to bring to Europe and there will be Aga, Falcon and Rangemaster options.

SLIDE 19 – AGA STUDIO

In upscale cookers and refrigeration we are market leaders. What we are now planning for the next 3 years is a programme to create retail space primarily outside the UK where the product can be seen as a grouping. Aga studios are being created where our brands are shown against a backcloth of paint and tiles provided by Fired Earth and in displays using Grange and Domain furniture that show our products in lifestyle settings and not as exiles from an electrical wholesaler. We see the studio idea as giving us the market recognition overseas which will help create a focus for our products and enable the kitchen specialist to encourage customers to move to our product range and not default to built-in appliances.

We have identified cities and partners to help achieve the objectives. In the US , Domain will manage stand-alone Aga shops as well as Aga shops in Domain; Grange will provide space in New York and other major cities.

We will develop around the established outlets of Fired Earth and Grange. In Paris , Grange already operates an Aga Shop and has a Rangemaster studio. We have a Rangemaster development manager in France seeking displays as well as stand-alone studios and we have an energetic distributor in Holland doing the same.

SLIDE 20 – INFINITY FRYER

In foodservice, we have created a strong international structure which can enable us to take product to market. We wanted a category-leading product and now we have it with the Infinity Fryer. It is said by the the engineering director of one of the world's largest fast food chains to be the most interesting new product for 20 years. At a time when the key challenges facing our customers are not just cost but waste, energy consumption, fuel and toxic emissions, consistent food quality and providing healthy product – we are introducing a product which addresses them all. The Infinity Fryer has adapted technology from Aga-Rayburn with a pre-mix burner and a patented unique heat transfer system which ensures oil is heated quickly and evenly. Cooking times are 20% lower than the competition. It uses less oil and critically it maintains oil quality. You use less and change it less often. Oil disposal is a major sector issue, and from October, in the UK , cannot be used in animal feed - where 70% of it goes at present. This is a major breakthrough. It has a filtration system built in as standard, which not only improves oil quality but also addresses the key health and safety questions for fast food outlets using inexperienced staff to manage complex filtration procedures.

SLIDE 21 – THE INFINITY FRYER : CALCULATOR (I)

SLIDE 22 – THE INFINITY FRYER : CALCULATOR (II)

Operating costs plummet. At around £2,000 the fryer is cost competitive.

SLIDE 23 – THE INFINITY FRYER

Further, work with oil suppliers and nutritionists shows that fat content, in particular content of free fatty acids, is reduced. This has received independent verification by the Global Environmental Analysis Group. With public health such an important issue for governments this is a crucial feature of the product. We estimate that there are over half a million fryers purchased worldwide every year. We sold 1,000 fryers last year. We expect to sell nearly 3,000 this year in the UK without a major chain account win. We have, however already acquired Falcon's new factory in Stirling with fryer expansion in mind and we are already looking to produce at our US and European facilities. It is natural to be cautious about a new product that is being brought to market but the campaign we have devised for it, highlighting that it is a revolution, shows that we are ready for a great change at Falcon.

SLIDE 24 – GLYCOL REFRIGERATION

SLIDE 25 – ALL PRODUCTS : ALL MARKETS

These products will then help drive sales through the structure we have in place. The “cement” money, ie centrally funded projects designed to test the market opportunities and productive capacities of Group companies, increased last year. We have enhanced our processes and completed the e.catalogue so that it is now available in all countries. We are leveling up to have all products available in all markets and to be as strong as we are in the UK in France and the US in particular. With Panera Bread, for example, now sourcing products from our plants in New Jersey , Swansea , Strasbourg and Venice , we have come a long way in a short time.

We spoke at the time of the interims of the objective of having over 10% of foodservice sales in 2004 made by companies selling products produced by another Group company. This target remains achievable.

We have a strong product offering to take to customers internationally. Aga Foodservice “Know-How” is reflected in our work to modernise the approach and indeed attitude in the sector towards fulfilling customer needs – capital cost down is not the only game. Further, we have a really strong service support organisation which can not only provide breakdown cover but give substance to preventative maintenance and whole life costing initiatives. There are products and geographical expansion that fits the established patterns. Hence, product development combining with strength in manufacturing which we discussed last September, gives confidence moving into 2004.

W B MCGRATH:

SLIDE 26 – DEVELOPMENT PLANS – CONSUMER 2006

Moving to our development plans for 2004 and beyond. The basic themes remain the same but with the core strengthened in product and geographical terms we can set some new specific objectives.

With Project 10,000 achieved in 2003, the new target is ‘Project 15' – sales of 15,000 Aga branded cookers by 2006. The attractions of the operational gearing are as before. Unit costs should not increase up to that sales level. We have the products to support the growth, notably with the electric generation. As with Project 10,000 where we spent £3 million on the retail structure and on advertising, so with ‘Project 15', investment is needed. The same applies to Rangemaster, which is to be taken outside the UK and to Marvel which is being brought to Europe . We are looking at store developments where we can show all our upscale products together led by Aga under the Aga fascia. We intend to invest at least an additional £12 million in the next 3 years in marketing and in supporting the development of the international distribution structure. We are expecting around two-thirds of this will be in capital and the rest to be shown as an identifiable revenue cost. The peak year will be in 2005.

SLIDE 27 – RETAIL EXPANSION

We see stores like Cobham, High Wycombe , Natick , Princeton and Lyon , which are performing well as models, and development will be largely with our established retailing connections. The targets by geographical area are to take such inspirational stores from 10 to 15 in the UK and to have at least 15 such outlets - either owned or dealer operated under Aga fascias - in both the US and Europe by the end of 2006. All this is in addition to displays in kitchen studios and electrical chains which will continue to increase.

SLIDE 28 – FOODSERVICE 2006

In foodservice, the immediate focus is to make as big a success of the new products as they warrant. A rebound in UK spending by larger accounts would provide impetus. An anchor product is the key to success. We have a sales target for 2003 of 3,000 for the Infinity Fryer. International sales in future years above that level would start to have an appreciable impact on our foodservice operations.

We have in foodservice a considerable number of product and geographical opportunities. We will take them once we are satisfied that we have made a success of steps already taken, notably at Bongard - success being reflected in sales of appreciable volumes of products produced outside France. The launch by Bongard of the Infinity Fryer and Belshaw doughnut equipment, through its established distributor structure, is a good test. We are already seeing our larger customers looking to us to reflect their geographic reach, most notably in bakery and we can follow them. In so doing, we have a core of products and have put the resources into being the commercial equipment supplier of choice for customers who look not just to price, but to the environmental impact through energy consumption, waste and working conditions for employees. A review of the commitment made by major customers in their CSR statements, from both the public and private sectors, highlights how important these areas are to leading companies. We can help them answer the question: “Where is the beef?” that matches their aspirations. Similarly, the investor community's commitment to CSR should mean our efforts are germane to their own approach. We will be making those points to customers, regulators and shareholders alike in the next few weeks. Here then, is an example of where regulation is having an impact through to suppliers and in turn by customers – joined up thinking in practice.

SLIDE 29 – CURRENT TRADING

The better the current trading, the more obviously persuasive the longer term plan sounds. We continue to be pleased with the European consumer operations. Aga home survey numbers – the best lead indicator – are up over 20% on last year. The Six-Four; the 3-oven Aga and now the electric Aga all introduced in the last 2 years, are accounting for 20% of orders so far this year. Rangemaster has started 2004 at a cracking pace in both cookers and sinks; Fired Earth has a strong marketing programme and its 20-year celebration involves original works in Fired Earth paints by ten of the country's leading artists – as can be seen on this slide. In the US , Domain's overall orders are, to the end of February, up over 15% on last year – the new Aga Domain stores providing the growth. In foodservice the patterns of 2003 continued at the start of 2004, although major accounts are now spending more. A contract for Athens Olympic Stadium will give a sporting second and third quarter boost.

We are then confident that the business we have will grow further this year. We have the confidence to invest in them further to take them to a materially higher and sustainable level of profitability where manufacturing capacity is used to best effect and we have outstanding retail outlets for the consumer business and look to major international accounts to provide the core revenues for our foodservice operations.

SLIDE 30 – SUMMARY

In summary we feel that 2003 was a hard year but one in which we made real progress. We now have in place a product portfolio which can drive the business forward with the electric Aga and Infinity Fryer in the vanguard. We know how we can put our products before the customers. We will use all policy levers and are mindful of the need to achieve improved returns for shareholders – hence the increased dividend and buy back. We have a well-paced investment programme in view. We are pleased with the progress of the last three years. We have a clear view of what we can achieve over the next 3 years – and we expect exciting times ahead.

SLIDE 30 – CLOSING SLIDE