Annual report and accounts 2016

Annual report and accounts 2016 Our products are working behind the scenes, in more industries than you think...

Contents

Strategic report 42 Performance – Healthcare Financial statements 01 Introduction 44 Performance – Financial review 94 Consolidated income statement 02 At a glance 48 Risk and risk management 95 Consolidated statement of comprehensive 04 Chairman’s statement 50 Principal risks and uncertainties income and expense 08 Additive manufacturing for custom solutions 52 Corporate social responsibility 96 Consolidated balance sheet 09 Our business model 54 Our strategy in action – People 97 Consolidated statement of changes in equity 10 Our markets 62 The power generation market 98 Consolidated statement of cash flow 12 Our business sectors – Metrology 99 Notes (forming part of the Governance financial statements) 14 The aerospace market 64 Introduction 121 Company balance sheet 16 The automotive market 66 Board of directors and company secretary 122 Company statement of changes in equity 18 Our business sectors – Healthcare 68 Executive Board 123 Notes to the Company financial statements 20 The healthcare market 69 International Sales and Marketing Board 22 Our strategy 70 Directors’ corporate governance report Shareholder information 23 Key performance indicators 76 Nomination Committee report 134 10 year financial record 24 Our strategy in action 77 Audit Committee report 135 Shareholder information 26 Our strategy in action 80 Directors’ remuneration report 136 Shareholder notes – Focus on delivering solutions 87 Other statutory and regulatory disclosures 28 Our strategy in action 90 Directors’ responsibilities – Global customer support 91 Independent auditor’s report 30 Our strategy in action – Efficient high-quality manufacturing 32 Our strategy in action – Continual research creating strong market positions with innovative products 34 Performance – Overview 36 Performance – Metrology 38 The consumer products market 40 The construction market Strategic report Governance Financial statements Shareholder information 01

Applying innovation to a range of our markets

Construction see pages 40–41 Consumer products see pages 38–39 Power generation see pages 62–63

Automotive see pages 16–17 Aerospace see pages 14–15 Healthcare see pages 20–21

Introduction Renishaw is a world-leading metrology company. With our highly experienced team, we are confidently driving our future growth through innovative and patented products and processes, efficient high-quality manufacturing, and the ability to provide local support in a growing number of geographies and markets. 95% of our sales are outside the UK. Our continuing investment in new product development, plant and equipment, and facilities (c.£100m in the last year) is the key to our confidence in the Group’s long-term strategy and prospects. With 4,286 skilled and motivated people, we continue to be at the leading edge of technological innovation.

For more information visit: All dates within this document refer to www.renishaw.com financial years unless stated otherwise. 02 Renishaw plc Annual report and accounts 2016 Strategic report

At a glance £436.6m £80.0m 2 016 Revenue Profit before tax in numbers

Who we are Renishaw is a world-leading metrology company operating in two key business areas, metrology and healthcare. The Group has 79 locations in 35 countries from where we distribute and support products for our global customer base, with 95% of sales outside the UK. We manufacture our products in the UK, Ireland, India, Germany, USA and France. What we do Metrology products: US office near Chicago Our technology solutions help Renishaw, Inc. to be manufacturers to maximise production consolidated into one new output, to significantly reduce the facility time taken to produce and inspect 133,000 sq ft components, and to keep their machines running reliably. In the fields of industrial