Response to Davies Report

The Board currently consists of five Executive and seven non-executive Directors. Two of the seven non-executive Directors are women but all of the Executive Directors are men, which translates to a relatively low level of gender diversity.

The Board supports the aspirations set out in the 2011 Davies Report ‘Women on Boards’ that women should make up at least 25 per cent of board positions, but to achieve this within the timeframe contemplated would restrict future Board appointments to women only, which may not be in the best interest of the Company.

However we continue to seek to address the problem of lack of gender diversity in the Senior Management pipeline. At the end of 2015, 12 per cent of Senior Managers were women. The Board most recently discussed diversity at its meeting in December 2015 and agreed to prepare a specific plan to improve both gender and ethnic diversity, including key performance indicators that would be used to determine an element of performance-related pay for Senior Executives, in 2016.