Governance

Dear Shareholders

On behalf of the Board, I am pleased to present Bodycote’s Corporate Governance Statement for 2018.

The Board is mindful of the 2018 corporate governance code and changes in legislation introduced during the year and that are intended to encourage responsible corporate behaviour. We understand that these changes are aimed at ensuring that in growing a business for the long-term interest of its shareholders, a board is mindful of the company’s broader purpose and its responsibilities to a broader stakeholder group. These changes also highlight the importance of ensuring that the Company’s purpose, strategy, and values are fully aligned and clearly articulated. The Annual Report provides some information on stakeholder and stakeholder engagement and we expect to report
more fully on these matters in the 2019 Annual Report.

An Employee Advisory Committee chaired by one of our Non-Executive directors, Patrick Larmon, was introduced during 2018 and the first meeting has taken place. A variety of topics were raised by employees at the meeting and these were presented directly to the Board. A number of these are now in progress to be addressed.

The main Group-wide governance documents are our Core Values and the Code of Conduct, which set out the values and standards that we expect of our employees. These documents, together with our policies, govern how we conduct our business and set the standards that drive performance. Compliance training helps to enforce this. Board oversight, reviews and audits form part of the monitoring and supervision process. Risk processes are embedded and reviewed on an ongoing basis across the business. The important governance developments at Bodycote over the last year are detailed in the governance reporting section below.

We are committed to conducting business responsibly. By maintaining high standards of corporate governance we enhance performance underpinned by our business model. Our approach to governance is set by the Board and our Executive Committee ensures that the approach is effectively implemented across the business. Effective and robust governance remains central to the ongoing success of the Group.

My ambitions for the composition of the Board are to maintain and, where applicable, broaden the range of expertise, experience and diversity. The Board continues to ensure that effective succession plans are in place.
I encourage all shareholders to attend the AGM, which will be held at our Macclesfield head office on 24 May 2019. This event provides an excellent opportunity to meet the executive and independent Non-Executive directors.

A.C. Quinn
Chair