Contents:

REPORT COVERAGE MARKET SECTORS By Type of Fuel Product Sectors Boilers Radiators Pumps Controls MARKET TRENDS More Efficient and Environmentally Friendly Products Declining Demand for Space-Heating Products Gas Versus Other Fuels Fluctuating Oil Prices Solid-Fuel Heating in Decline Radiator Trends Pumps and Controls ECONOMIC TRENDS Population Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006 Gross Domestic Product Table 2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006 Inflation Table 3: UK Rate of Inflation (%), 2002-2006 Unemployment Table 4: Actual Number of Unemployed Persons in the UK (million), 2002-2006 Household Disposable Income Table 5: UK Household Disposable Income Per Capita (£), 2002-2006 MARKET POSITION The UK Overseas 2. Market Size THE TOTAL MARKET Table 6: The Total UK Market for Domestic Heating by Value at Current Prices (£m at msp), 2002-2006 Figure 1: The Total UK Market for Domestic Heating by Value at Current Prices (£m at msp), 2002-2006 Table 7: The Total UK Market for Domestic Heating by Sector by Value at Current Prices (£m at msp and %), 2006 Figure 2: The Total UK Market for Domestic Heating by Sector by Value at Current Prices (%), 2006 BY MARKET SECTOR Table 8: Ownership of Central Heating in Great Britain by Type (000 households and %), 2001-2005 Boilers Table 9: The UK Central-Heating Boilers Sector by Volume and Value at Current Prices (000 units and £m at msp), 2002-2006 Space Heating Table 10: The UK Space-Heating Sector by Value at Current Prices (£m at msp), 2002-2006 Radiators Table 11: The UK Central-Heating Radiators Sector by Value at Current Prices (£m at msp), 2002-2006 Controls Table 12: The UK Heating-Controls Sector by Value at Current Prices (£m at msp), 2002-2006 Pumps Table 13: The UK Central-Heating Pumps Sector by Value at Current Prices (£m at msp), 2002-2006 OVERSEAS TRADE Table 14: UK Overseas Trade in Heating Components and Products by Type by Value (£m), 2005 and 2006 Intra-EU Trade Table 15: UK Intra-EU Trade in Heating Components and Products by Type by Value (£m), 2005 and 2006 Extra-EU Trade Table 16: UK Extra-EU Trade in Heating Components and Products by Type by Value (£m), 2005 and 2006 Principal Trade Partners Imports Table 17: UK Imports of Heating Components and Products by Type and Country of Source by Value (£m and %), 2006 Exports Table 18: UK Exports of Heating Components and Products by Type and Country of Destination by Value (£m and %), 2006 3. Industry Background RECENT HISTORY Corporate Activity Energy Efficiency Gas and Electricity Supply Current Developments NUMBER OF COMPANIES Table 19: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Central-Heating Radiators and Boilers by Turnover Sizeband, 2002 and 2006 EMPLOYMENT Table 20: Number of UK Local Units Engaged in the Manufacture of Central-Heating Radiators and Boilers by Employment Sizeband, 2006 REGIONAL VARIATIONS IN THE MARKETPLACE Table 21: Number of Local Units Engaged in the Manufacture of Central-Heating Radiators and Boilers by Region (number and %), 2006 DISTRIBUTION Boilers and Radiators Heating Controls Electrical Heating Appliances Fuel HOW ROBUST IS THE MARKET? Table 22: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Central-Heating Radiators and Boilers by Age of Business (number and %), 2006 LEGISLATION Part L Building Regulations Price Controls Heating Installations Product Standards Table 23: SEDBUK Bands and Efficiency Ranges (%), 2007 KEY TRADE ASSOCIATIONS The Association of Controls Manufacturers Association of Manufacturers of Domestic Electrical Appliances Association of Plumbing and Heating Contractors Boiler and Radiator Manufacturers Association Ltd Building Research Energy Conservation Support Unit Combined Heat and Power Association Council for Registered Gas Installers Domestic Appliance Service Association Heating & Hotwater Information Council Heating and Ventilating Contractors' Association Heating, Ventilating & Air Conditioning Manufacturers Association HETAS Ltd Institute of Domestic Heating & Environmental Engineers Institute of Plumbing and Heating Engineering LP Gas Association National Association of Chimney Engineers National Association of Chimney Sweeps National Fireplace Association Oil Firing Technical Association Plumbing and Heating Industry Alliance Society of the British Gas Industry Solid Fuel Association Underfloor Heating Manufacturers' Association 4. Competitor Analysis THE MARKETPLACE MARKET LEADERS Baxi Holdings Ltd Company Structure Current and Future Developments Financial Results BBT Thermotechnology UK Ltd Company Structure Current and Future Developments Financial Results Danfoss Randall Ltd Company Structure Current and Future Developments Financial Results Honeywell Control Systems Ltd Company Structure Current and Future Developments Financial Results Ideal Stelrad Group Ltd Company Structure Current and Future Developments Financial Results MTS (GB) Ltd Company Structure Current and Future Developments Financial Results Quinn Radiators Ltd Company Structure Current and Future Developments Financial Results Rettig (UK) Ltd Company Structure Current and Future Developments Financial Results Vaillant Ltd Company Structure Current and Future Developments Financial Results Vokera Ltd Company Structure Current and Future Developments Financial Results OTHER COMPANIES Boilers Alpha Heating Innovation Ferroli Ltd GAH (Heating Products) Ltd Grant Engineering (Ireland) Ltd Halstead Boilers Ltd HRM Boilers Ltd Johnson and Starley Ltd Lennox Industries Malvern Boilers Ltd Mistral Boilers Ltd Ravenheat Manufacturing Ltd Sime Ltd Strebel Ltd Trianco Heating Products Ltd Viessmann Ltd Warmflow Engineering Co Ltd Radiators Heat Line Vogue (UK) Ltd Zehnder Ltd Pumps and Controls Grundfos Pumps Ltd Horstmann Controls Ltd Pegler Ltd Siemens Building Technologies UK Sunvic Controls Ltd Yorkshire Fittings Ltd Others Glen Dimplex OUTSIDE SUPPLIERS TO THE INDUSTRY Energy Suppliers Table 24: UK Energy Consumption by Domestic Users by Fuel Source (000 tonnes of oil equivalent and %), 2001-2005 Installers Builders' and Plumbers' Merchants MARKETING ACTIVITY Table 25: Main Media Advertising Expenditure on Domestic Heating Products (£000), Years Ending December 2005 and 2006 Table 26: Main Media Advertising Expenditure on Residential Energy Supply (£000), Years Ending December 2005 and 2006 Exhibitions and Trade Shows 5. Strengths, Weaknesses, Opportunities and Threats 6. Buying Behaviour THE HOUSING MARKET Housing Park Table 27: Accommodation in Great Britain by Type (%), 2005 Table 28: Dwelling Stock in Great Britain by Tenure (000 dwellings and %), 2005 New Housebuilding Table 29: Number of Housebuilding Starts and Completions in Great Britain by Sector, 2001/2002-2005/2006 Table 30: Housebuilding Completions in Great Britain by Type of Property and Number of Bedrooms (%), 2001/2002-2005/2006 Table 31: The Largest Builders in the UK by Number of Homes Sold, 2006 Property Transactions Table 32: Residential Property Transactions in Great Britain by Region by Volume and Value (000 and £m), 2001-2005 HOUSEHOLD EXPENDITURE ON FUEL Table 33: UK Household Expenditure on Fuel at Current Prices (£m and %), 2002-2006 Average Household Expenditure CONSUMER PENETRATION Ownership of Central Heating Table 34: Ownership of Central Heating by Type of Fuel (% of households), 2005 and 2006 By Region Table 35: Ownership of Central Heating by Tyep of Fuel by Region (% of households), 2006 By Social Grade Table 36: Ownership of Central Heating by Type of Fuel by Social Grade (% of households), 2006 Purchasing Patterns Table 37: Purchase of Central-Heating Systems in the Past 12 Months by Type of Fuel (% of households), 2006 LIFESTYLE CHANGES ENERGY PRICES Table 38: Fuel Price Index for the Domestic Sector (index 1990=100), 2002-2006 Table 39: Comparison of Average Central-Heating Costs in Great Britain by Type of Fuel (£ per year†), 2002/2007 7. Current Issues THE ROLE OF THE INTERNET INTERNATIONAL MARKETS THE IMPACT OF THE EURO THE POLITICAL SCENE PRODUCT DEVELOPMENT CONSUMER DEMAND CORPORATE ACTIVITY 8. The Global Market EUROPE Table 40: Concentration of Manufacturers of Domestic-Heating Equipment in Selected European Countries (number), 2007 REGIONAL VARIATIONS 9. Forecasts INTRODUCTION The Economy Population Table 41: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011 Gross Domestic Product Table 42: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011 Inflation Table 43: Forecast UK Rate of Inflation (%), 2007-2011 Unemployment Table 44: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011 FORECASTS 2007 TO 2011 Table 45: The Forecast UK Market for Domestic Heating by Value at Current Prices (£m at msp), 2007-2011 Figure 3: The Forecast UK Market for Domestic Heating by Value at Current Prices (£m at msp), 2007-2011 MARKET GROWTH Figure 4: Growth in the UK Market for Domestic Heating by Value at Current Prices (£m at msp), 2002-2011 FUTURE TRENDS Demographics Market Segmentation Boilers Space Heating Radiators Controls Globalisation Product Development and Technological Change 10. Company Profiles Baxi Holdings Ltd Bbt Thermotechnology Uk Ltd Danfoss Randall Ltd Honeywell Control Systems Ltd Ideal Stelrad Group Ltd Mts (gb) Ltd Quinn Radiators Ltd Rettig (uk) Ltd Vaillant Ltd Vokera Ltd 11. Consumer Confidence METHODOLOGY KEY FINDINGS THIS QUARTER THE WILLINGNESS TO BORROW Confidence Improves Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007 Willingness to Borrow Slips Slightly Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007 SPENDING FROM SAVINGS Slight Increase in Spending from Savings Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007 Saving Grows in Relative Importance Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007 11. Further Sources Associations General Sources Government Publications Other Sources Bisnode Sources

Companies Mentioned

- The Association of Controls Manufacturers - Association of Manufacturers of Domestic Electrical Appliances - Association of Plumbing and Heating Contractors - Boiler and Radiator Manufacturers Association Ltd - Building Research Energy Conservation Support Unit - Combined Heat and Power Association - Council for Registered Gas Installers - Domestic Appliance Service Association - Heating & Hotwater Information Council - Heating and Ventilating Contractors' Association - Heating, Ventilating & Air Conditioning Manufacturers Association - HETAS Ltd - Institute of Domestic Heating & Environmental Engineers - Institute of Plumbing and Heating Engineering - LP Gas Association - National Association of Chimney Engineers - National Association of Chimney Sweeps - National Fireplace Association - Oil Firing Technical Association - Plumbing and Heating Industry Alliance - Society of the British Gas Industry - Solid Fuel Association - Underfloor Heating Manufacturers' Association - Alpha Heating Innovation - Ferroli Ltd - GAH (Heating Products) Ltd - Grant Engineering (Ireland) Ltd - Halstead Boilers Ltd - HRM Boilers Ltd - Johnson and Starley Ltd - Lennox Industries - Malvern Boilers Ltd - Mistral Boilers Ltd - Ravenheat Manufacturing Ltd - Sime Ltd - Strebel Ltd - Trianco Heating Products Ltd - Viessmann Ltd - Warmflow Engineering Co Ltd - Heat Line - Vogue (UK) Ltd - Zehnder Ltd - Grundfos Pumps Ltd - Horstmann Controls Ltd - Pegler Ltd - Siemens Building Technologies UK - Sunvic Controls Ltd - Yorkshire Fittings Ltd - Glen Dimplex - Baxi Holdings Ltd - Bbt Thermotechnology Uk Ltd - Danfoss Randall Ltd - Honeywell Control Systems Ltd - Ideal Stelrad Group Ltd - Mts (gb) Ltd - Quinn Radiators Ltd - Rettig (uk) Ltd - Vaillant Ltd