Board Performance Evaluation

In compliance with the Code, a performance evaluation was again conducted by external facilitator David Mensley of EquityCommunications Limited. Neither Mr Mensley nor EquityCommunications Limited has any connection to the Company and they are completely independent.

The performance evaluation process was undertaken in the late autumn of 2016. Having agreed an itinerary of matters for appraisal, EquityCommunications Limited prepared a questionnaire which included questions about Board administration, the role of the Chairman, strategy, risk oversight, succession planning and the Board committee structure. The questionnaire was completed by all Board members and the Company Secretary. A report on the outcome of the evaluation exercise was prepared by EquityCommunications Limited and was presented to the Board at its January 2017 meeting.

The independent report concluded from the feedback to their questionnaire that we operated an extremely unified, highly functional Board.

The evaluation recognised the drive to continue the progress made to date in certain key areas such as people development and strategy.

The Chairman has evaluated the performance of individual Directors through informal discussions and observations. The Senior Independent Non-Executive Director and the other Non-Executive Directors have met, without the Chairman present, to appraise his performance.

Overall the Board considered the performance of each Director to be effective and concluded that both the Board and its committees continue to provide effective leadership and exert the required levels of governance and control. The Board will continue to review its procedures, effectiveness and development in the year ahead.