Swallowfield plc 21 st AGM

1. Swallowfield plc21st AGM 8th November 2007

2. SHENA WINNING Chairman “Welcoming Address and Opening Remarks”

3. The Fire Exits are situated behind you and to your left. If the fire alarm sounds please leave by your nearest exit and members of staff will show you to the assembly point. • Please ensure mobile phones are switched off. • Questions will be taken after the presentations. • Buffet lunch will be served in this room at the end of the meeting. • There will an opportunity for a factory tour after lunch. More details at the end of the meeting. • Bags with product samples will be handed out at Reception, by the car park, as you leave.

4. Order for the Day • Voting on the proposed resolutions • Corporate Presentation • FY2007 Background • Financial Results FY2007 • Sales & Marketing Update • Looking Forward • Questions from the floor

5. Resolution 1 To receive and adopt the annual report and accounts for the year ended 30 June 2007

6. Resolution 1 For Against Abstain  8,249,816  0  5,868

7. Resolution 2 To approve the Directors’ Remuneration Report for the year ended 30 June 2007

8. Resolution 2 For Against Abstain  8,249,684  0  6,000

9. Resolution 3 To declare a final dividend of 1.3p per ordinary share

10. Resolution 3 For Against Abstain  8,249,616  0  6,068

11. Resolution 4 To re-elect J M Fletcher as a Director

12. Resolution 4 For Against Abstain  8,156,161  88,655  10,868

13. Resolution 5 To re-elect R T Organ as a Director

14. Resolution 5 For Against Abstain  4,981,335  3,274,349  0

15. Resolution 6 To authorise the Directors to determine the auditors’ remuneration

16. Resolution 6 For Against Abstain  8,246,816  3,000  5,868

17. Resolution 7 As an Ordinary Resolution to re-appoint Grant Thornton UK LLP as auditors

18. Resolution 7 For Against Abstain  8,244,901  0  10,783

19. Resolution 8 As an Ordinary Resolution, to authorise the Directors to allot relevant securities

20. Resolution 8 For Against Abstain  8,235,684  8,132  11,868

21. Resolution 9 As a Special Resolution, to authorise the Directors to issue equity securities for cash, subject to limitations

22. Resolution 9 For Against Abstain  8,222,684  8,132  24,868

23. Resolution 10 As a Special Resolution, to authorise the Company to purchase its own shares, subject to limitations

24. Resolution 10 For Against Abstain  8,230,684  132  24,868

25. Additional Business

26. Ian MackinnonChief Executive Officer FY2007 Background

27. Background to Results • No real change in market place • Some sector growth & some decline • Signs of easing pricing pressure at start of year have dissipated • Raw material costs increasing • Energy costs now declining • Continuous Improvement adds value • Winning some higher value opportunities

28. Phase 1 of turnaround isprogressing well • Underpin Profitability • Operating profit up 122% to £1.3m • Strengthen Balance Sheet • Net debt down £2.3m to £4.9m • Rebuild Confidence • Customers discussing long-term projects • Employee morale much improved • Dividend resumed

29. Summary of progress in last 12 months • Continued profitable trading in a difficult market • Profits and working capital management leads to further debt reduction • New customers won and new products launched • Completed strategic review of cosmetics division • Czech Republic and China – later slides • Sale & Leaseback planned • Large scale NVQ training

30. Peter HoustonGroup Finance Director Financial Results FY2007

31. Net Debt £4.9m down £2.3m Operating Profit* +122% to £1.3m EBITDA* +25% to £2.6m Revenue £45m with higher margins Pretax Profit £0.69m Earnings Per Share 3.9p Final Dividend of 1.3p *Pre Exceptional Costs of £244k Financial highlights- results better than expected

32. Operational highlights • Improved operational efficiencies • Cost control better than expected • Czech Republic on track: • From idea to production in <12 months • Sale & Leaseback progressing – but slower than expected • Focus on non-stockholding accounts • Inventories down £1.3m • Continuous Improvement in Quality, Cost, Service and Innovation showing signs of success

33. Five year summary

34. Cosmetics • Full year operating profit £0.3m before corporate costs • Overheads down by 16% in last 12 months • £2.9m of cash generated over last two years • 3 new launches in last 12 months • See later slide for Czech strategy

35. Toiletries • Noticeable improvement on last year • Lower revenue but improved margins • Restructuring enhancing profitability • Continuous improvement making a positive impact • Higher quality business coming through

36. Jane FletcherGroup Sales & Marketing Director Sales & Marketing Review

37. Profitable Sales Growth Profitable Sales Growth People Safety

38. Quality • Create and deliver solutions • Develop key partnership relationships where we are a ‘first choice supplier’ • Focus on customer service in all respects • Exploit all customer opportunities: working by accounts not product sectors • ‘Customise and tailor’ our service as required

39. Cost • Minimise stock holding and reduce working capital • Drive service and innovation in order to drive margins • Drive cost engineering across all existing business • Be prepared to walk away • ‘Tailor’ our service as required to maximise service and profitability

40. Delivery • Build on our strengths to develop new business: e.g. • Constantly improve our speed to market and speed of response

41. Innovation • Continuous focus on R&D, creativity and innovation in everything we do: • A foundation that automatically ‘matches’ to any skin tone • 100% natural formulations • The ‘ultimate’ wet, dry & emulsion base aerosol self tans • Full service design and development of gifts • Full service formulation and development of new cosmetic ranges

42. Creating and Delivering Solutions • Focus on service in all respects • Develop and build key partnership relationships, where we are the customer’s ‘first choice supplier’ • Exploit all profitable opportunities: Sales & Marketing team working by accounts not product • Build a balanced portfolio of key accounts

43. Ian MackinnonChief Executive Officer Looking Forward & Ongoing Strategy

44. Strategy updatea reminder • In essence Swallowfield is a service company • Marketing; design; formulation development; logistics; project management; procurement & sourcing as well as manufacturing • Customer intimacy is therefore vital Profitable Sales Growth People Safety

45. Main objectives for coming year • Implement Czech factory • Finalise China JV • Continue to combine cosmetics & toiletries into one fully operational and cross functional business • Greater levels of automation • Training and development

46. Czech Republic • Filling & finishing • Located in Tabor (100kms south of Prague) • Approx 5,000 sqm or 50,000 sqft • Building layout, ventilation and GMP spec set by us • Complementary to UK and Far East operations • Building on track for mid November hand-over • Production will start by January

47. Czech Republic10 June 2007

48. Czech Republic5 September 2007

49. Czech Republic2 November 2007

50. Czech Republic2 November 2007