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Annual Report 2024
Growth+
Delivering our vision
Rotork is a market-leading global provider of mission-critical intelligent flow control
solutions for oil and gas, water and wastewater, power, chemical process andindustrial
applications. Rotork helps customers around the world to improve efficiency, reduce
emissions, minimise their environmental impact and assure safety. The Group employs
about 3,500 people, has assembly facilities in 15locations and serves 170 countries
through a global service network.
Contents
Strategic report
1 Highlights of 2024
2 What we do
4 Our market dynamics
6 Business model
8 Chair’s statement
10 Chief Executive Officer's statement
14 Key performance indicators
16 Investment case
17 Our strategy
24 Divisional review
30 Financial review
34 Sustainability review
67 Risk management
70 Principal risks and uncertainties
78 Viability statement
79 Task Force on Climate-related
FinancialDisclosures
86 Non-financial and sustainability
informationstatement
Corporate governance
91 Chair’s governance overview
94 Board of directors
96 Governance highlights
98 Corporate governance report, including
our Section 172(1) statement
117 Safety and Sustainability Committeereport
121 Audit Committee report
126 Nomination Committee report
131 Directors’ Remuneration report
159 Directors’ report
163 Statement of directors’ responsibilities
Financial statements
165 Independent auditor’s report
173 Consolidated income statement
Consolidated statement of
comprehensiveincome
174 Consolidated balance sheet
175 Consolidated statement
of changes in equity
177 Consolidated statement ofcashflows
178 Notes to the Group financialstatements
205 Company balance sheet
Company statement of changes in equity
206 Notes to the Company financialstatements
Other information
211 Ten year trading history
212 Share register information
213 Corporate directory
Stay up to date with the latest news
www.rotork.com
• Revenue increased 4.9% year-on-year despite
a significant currency headwind (8.2% on an
organic constant currency basis
1
).
• Adjusted operating margins were 70bps
higher year-on-year at 23.6%.
Financial highlights
+6.1%
Orders were 6.1% higher
year-on-year (OCC)
24 744
23 724
22 682
24 754
23 719
22 642
Orders
(£m)
Revenue
(£m)
+8.2%
Revenue was 8.2% ahead
year-on-year (OCC)
24 140
23 151
22 124
24 7.75
23 7.20
22 6.70
Profit before tax
(£m)
Dividend per share
(p)
£140m
Profit before tax was
6.8%lower year-on-year
7.75p
Annual dividend increased
by7.6% year-on-year
24 15.9
23 14.6
22 12.7
Adjusted basic EPS
(p)
15.9p
Basic EPS was 12.1p
Adjusted operating
profit (£m) and margin (%)
£178m
Reported operating profit
was £136m
24 178 (23.6%)
23 164 (22.9%)
22 143 (22.3%)
Growth+
Delivering our vision
Target Segments P.18
Customer Value P.20
Innovative Products & Services P.22
The delivery of Growth+ continues and the
benefits of the strategy are evident in our
improved financial performance.
Read more inside about how our Growth+
strategy is delivering our vision.
Our Growth+ pillars
1 Adjusted figures and organic constant currency (‘OCC’) figures are alternative performance measures and are
usedconsistently throughout the Annual Report. They are defined in full and reconciled to the statutory measures
innote2to the financial statements.
rotork.com Rotork Annual Report 20241
Highlights of 2024 Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 20241
Americas
Employees 564
Offices 9
Assembly facilities 3
Revenue
£200m
EMEA
Employees 1,872
Offices 24
Assembly facilities 10
Revenue
£307m
Asia Pacific
Employees 1,057
Offices 31
Assembly facilities 4
Revenue
£247m
Rotork is a market-leading global
provider of mission-critical intelligent
flow control solutions.
Divisional split
Global presence
Offices
Assembly facilities
Oil & Gas P.24 Chemical, Process & Industrial P.26 Water & Power P.28
The leading supplier of
electric critical duty actuators
and related services to the
global oil and gas sector
with the largest installed
base and site services team.
Our products and services
are used by customers across
their upstream, midstream
and downstream segments
to automate and electrify
processes, assure safety and
eliminate fugitive emissions.
Revenue
£355m +8% YoY
Adjusted operating margin
25.9%
A supplier of specialist
actuators and instruments
for niche applications in the
chemical, process industry
and industrial sectors. CPI
identifies and solves critical
reliability, efficiency and
safety challenges for
customers across a range
ofend markets including
speciality and other
chemicals, metals and
mining, critical HVAC,
pharmaceutical, steel
andcement.
Revenue
£205m -4% YoY
Adjusted operating margin
25.8%
Supplier of premium
actuators, predominantly
electric, and gearboxes for
applications in the water and
power generation sectors.
Our products and services
are used to solve water
management, quality and
scarcity challenges and in
climate change adaptation
and alternative energy,
aswellas to automate,
electrifyand digitalise
ourcustomers’ processes.
Revenue
£194m +10% YoY
Adjusted operating margin
29.1%
Rotork Annual Report 2024 rotork.com2
What we do Strategic report Corporate governance Financial statements
The flow-control markets Rotork serves
have great potential for growth
Typical flow control applications
Our market position is driven by our technical capabilities,
thequality and reliability of our products and services and our
reputation in the market. Our products must satisfy challenging
and complex certification requirements which differ from industry
to industry and geography to geography, meaning barriers to
entry are relatively high.
Extraction
Our products are used
in the extraction of
high-value materials
such as oil and gas,
metals and minerals
Recycling
They often play a
keyroleinrecycling
processes – for
example of reclaimed
and effluent water
Transportation
Rotork products
provide critical safety
functions during
thetransportation
offluids, e.g.
viapipelines
Storage
Our products control
the flow offluids in
and out of storage
tanks and shut them
down in anemergency
Utilisation
Our products are
regularly used in the
utilisation offluids –
for example producing
hydrogen fromwater
Heating and cooling
They are used in
severeservice HVAC
applications such as
insemiconductor
fabrication plants
anddatacentres
Recovery
Rotork products have
an important role to
play in the circular
economy, e.g. carbon
capture and storage
Processing
They are used to
automate material
processing plants,
such as refineries and
chemical facilities
rotork.com Rotork Annual Report 20243
What we do continued Strategic report Corporate governance Financial statements
Global megatrends drivingourgrowth
Our growth is driven by significant long-term megatrends, from automation
to sustainability, aswell as our own self-help initiatives.
Automation
Automation is the introduction of automatic equipment
intoprocesses to improve reliability, safety and efficiency.
Webenefit from this powerful trend as our end users
upgradefrom manually-operated to automated valves.
>90%
Over 90% of Rotork sales are into the industrial
automation and control systemsmarket and benefit
from this megatrend
Electrification
Electrification is the conversion of a machine or system to
theuse of electrical power. Electrification is occurring across
many areas of industry, including flow control and actuation,
driven by emissions reduction andneed for precise control.
>50%
Electric-powered valve actuators represented over
50% of Rotork sales in 2024
Digitalisation
Digitalisation is the use of digital technologies to develop
abusiness model and provide new value to customers.
Digitalisation is a major theme in our markets–examples
include condition monitoring and remotediagnostics.
iAM
Rotork’s Intelligent Asset Management (iAM)
system analyses actuator performance data and
uses this to provide users with value addedservices
Energy security
Energy security has risen up the global priority list and has
triggered an acceleration in infrastructure spend including in
LNG liquefaction facilities, hydrocarbon storage capacity and
plant life extensions.
£100m
LNG is a Rotork targetsegment and we
estimatethe addressable market could
growto£100m intwo to three years' time
Rotork Annual Report 2024 rotork.com4
Our market dynamics Strategic report Corporate governance Financial statements
Opportunities for Rotork
Global megatrends drivingourgrowth continued
Water scarcity
Water scarcity is resulting in greater investment in
leakdetection and monitoring as well as water re-use
andrecycling. We are well placed to benefit, for
examplethrough our CK range ofwaterproof actuators.
CK/IQ3
Intelligent actuators with remote operation can
beused to manage water network pressure,
thereby reducing leakage
Water quality
The water sector is a major user of Rotork flow control
equipment and water quality challenges present us with
opportunities, for example in network infrastructure
modernisation, wastewater treatment and desalination.
£150m
Desalination is a Rotorktarget segment and
weestimate theserviceable addressable market
atapproximately £150m
Decarbonisation
We see exciting opportunities in carbon capture utilisation
and storage, and green and blue hydrogen as well as in the
production, transportation and storage of transition bridge
fuels such as LNG and low- and zero-carbon fuels.
£10-20k
A 5MW proton exchange membrane containerised
electrolyser would typically contain £10-20k of
flow control equipment of the type we provide
Sustainability
Sustainability is the societal goal of our time –
peoplesafelycoexisting over thelongterm.
Sustainabilityisamajoropportunity for us, including
throughmethane emissions and flaring elimination.
CH
4
To eliminate or reduceemissions the oil and
gassector is transitioning to electric powered
frompneumatic powered valve actuators
rotork.com Rotork Annual Report 20245
Our market dynamics continued Strategic report Corporate governance Financial statements
Opportunities for Rotork
Operating
responsibly
Enabling a
sustainable
future
Making
a positive
social
impact
Identify our customers’
automation challenges
Our customers rely on us for innovativesolutions
to control safely the flowoftheir liquids, gases
and powders. Weproactively seek out their
product andservice needs and develop solutions
thatoffer improved efficiency, assured
safetyand environmental protection and
aretailored to their precise requirements.
Innovation and development
of products and services
The innovative research and development
activities across Rotork ensure
cutting-edge products are available
for every application acrossthe markets
weserve. Our new product development
isparticularly focused on products
that help improve our customers’ efficiency
andenvironmental performance.
World class product
manufacturing
We are a global business with product
manufacturing sites located around the world.
Our factories operate to the highest
internationalstandards and supply our
qualityproducts to ourcustomers on time
andatshort notice ifrequired.
Lifecycle services
and support
We offer dedicated, expert service and
supportfrom initial inquiry to product
installation and, through Rotork
Service, long-term aftersales
care including planned and
predictive maintenance and
end-of-lifedecommissioning.
Industry-leading
application engineering
We have been widely acknowledged as the
market leader in flow control for over 60
years,recognised for our comprehensive,
high-quality range of products and solutions.
Our products are available with extensive
certifications, including for use in hazardous
areas and in safety applications.
Commitment to a
sustainable future
Read more P.34
A business model that delivers
Our customers rely on us for
innovative solutions to safely
control the flow of their liquids,
gasesand powders.
Rotork Annual Report 2024 rotork.com6
Business model Strategic report Corporate governance Financial statements
End users
Specification approval
Key to direct or indirect sales
The value we created in 2024
Own sales Our highly experienced sales
and application engineering teams
Channel partners Industrialdistributors
and manufacturer’s agents
Rotork Service Ourmarket-leading
global aftersales and service team
Specification approval Understanding
customer needs and confirming our
products meet them
OEMs Customers who incorporate
Rotorkcomponents into their products
andsystems
EPCs, contractors and integrators
Third-party infrastructure construction
and speciality automation partners
Our routes to market
20%
20%
Distributors
45%
10%
5%
OEMs/valve makers
EPCs
Own sales
Channel partners
Rotork Service
Our offering
We launched four new products in2024, including a new
range of modular electro-hydraulic actuators and Integrated
Ethernet for the IQ3 Pro family of electric actuators.
Read more P.22
4
productlaunches
Employees
We offer our employees a safe working environment,
fair pay, terms and conditions, and equality and fairness
in the workplace.
Read more P.58
£202m
wages, salaries,
etc.paid
Suppliers
We have a sizeable supply chain. Social, environmental
andethical considerations are embeddedinto
ourGlobal Supplier Excellence programme.
Read more P.47
£364m
spend with
externalsuppliers
Communities
We endeavour to make a positive social impact by being
agood corporate citizen. We are pleased topay taxes and
contribute to society in the countries inwhich we operate.
Read more P.62
£39m
corporation tax
cashpaid
The
environment
We delivered a good set ofresults across our key
environmental metrics in2024, including a 7% reduction
intotal scope 1 and market-based scope 2 CO
2
emissions.
Read more P.41
-7%
CO
2
emissions, YoY
Shareholders
We have a strong track record of creating shareholder
value and have increased our ordinary dividend each
year for more than 20 years.
Read more P.30
£63m
dividends paid
rotork.com Rotork Annual Report 20247
Business model continued Strategic report Corporate governance Financial statements
objectives. This guidance underscored the
importance of evolving our culture to support
long-term success and foster an environment
where innovation and collaboration thrive.
Through this work we further defined our core
cultural DNA by identifying our key behaviours
which will drive success: We Value Our Customers,
We Grow Together and We Win as a Team.
Our cultural DNA captures what makes Rotork
unique and establishes the foundation for how
we work, interact and succeed collectively. This
evolution is a multi-year journey to create a more
connected, customer-focused and collaborative
organisation. By aligning our practices with our
new cultural values and behaviours, we are
better positioned to address challenges, seize
opportunities, and unlock our full potential.
Board engagement with employees
The Board also sought to gather the views and
opinions of employees across the company on
broader topics. We achieved this through several
initiatives. Firstly, through site visits: in 2024,
Ivisited Rotork’s site in Rochester (US), while my
Board colleagues visited Chennai (India), Winston
Salem (US), Shanghai (China), and Manchester
(UK). We toured the facilities at each location
with regional and local leaders and engaged
with a broader group of employees through
town halls and round tables. I want to thank all
the colleagues we met for their warm welcome.
Secondly, we held focused employee sessions on
customer value and met with representatives of
each intake of our graduate programme. These
interactions provided invaluable insights into our
focus areas and fostered a deeper connection
between the Board and our employees.
By directly engaging with staff at various levels
and locations, we reinforced our commitment to
a transparent and inclusive culture, ensuring that
all voices are heard and valued as we continue
togrow and evolve.
“ 2024 was the third year of our Growth+
strategy and we continue to make
strongprogress."
Dorothy Thompson, CBE
Chair
Dorothy Thompson, CBE
Chair
2024 was the third year of our Growth+
strategy. The strategy is designed to deliver
profitable growth by targeting the right market
segments, providing value to our customers,
innovating our products and services and
enabling a sustainable future.
We made strong progress during the year.
Through the Target Segments approach we
continue to identify new market areas where
Rotork can win. Target Segments sales grew 9%
year-on-year OCC in 2024, outperforming the
Group overall, and reflecting earlier successes
under this pillar. Our Customer Value initiatives
are delivering, with our new systems and processes
helping to significantly reduce the lead times of
our more commonly ordered products. Under
the Innovative Products & Services pillar the
highlights of the year were the launches of
Integrated Ethernet functionality for the IQ3
Prorange of electric actuators and of the new
Rotork website. The website launch is another
important step in improving the customer
experience that Rotork provides.
Purpose
Our Purpose, as well as our sustainability vision, is
‘keeping the world flowing for future generations’.
Our purpose is a powerful motivator and drives
everything that we do. We want to help drive the
transition to a clean future where environmental
resources are used responsibly. We have a major
role to play in the transition to a low-carbon
economy, as well as helping preserve natural
resources such as fresh water and eliminating
energy sector methane emissions.
Culture evolution
In 2024, we progressed an extensive programme
to fully understand our culture, identifying
bothits strengths and any aspects that might
constrain our future success. The programme
included workshops with 800 employees across
27 countries. The Board actively reviewed
progress over the year and provided strategic
direction to ensure alignment with our Growth+
Growth+ is delivering
Rotork Annual Report 2024 rotork.com8
Chair’s statement Strategic report Corporate governance Financial statements
Employee engagement survey
Additionally, we conducted our annual employee
survey in partnership with a third-party provider
for the first time. This new approach enables us
to benchmark against our peers, focus our
engagement activities, and accurately measure our
progress in fostering a supportive and dynamic
workplace culture. The insights gained from the
survey are instrumental in shaping our future
initiatives and ensuring that our strategies align
with the needs and aspirations of our workforce.
As we look ahead, the Board remains committed
to nurturing a culture that supports our
Growth+ strategy, ensuring that Rotork
continues to thrive and deliver exceptional
valueto our shareholders.
Dividend and capital allocation
We have a clear and disciplined capital allocation
framework. Our priorities, in order, are organic
investment, a progressive dividend, acquisitions
and other shareholder returns. We have increased
our dividend each year for over 20 years and
have completed 30 acquisitions since 2000.
Wehave demonstrated discipline and flexibility
in using buybacks and special dividends to deliver
shareholder returns, including in March 2024 the
launch of a £50m share buyback programme
which we completed in December 2024. Net
cash at period end was £125.3m (31 December
2023: £134.4m). We remain active in looking
forsuitable acquisition opportunities, consistent
with our Growth+ strategy, and post period
endagreed to acquire Noah, a South Korean
headquartered electric actuator supplier, for
anenterprise value of £44m.
The Board is recommending a final dividend of
5.00p per share. With the 2024 interim dividend
of 2.75p, the total dividend for the year is 7.75p,
a 7.6% increase on the 2023 full-year dividend.
This equals 2.1 times cover based on adjusted
earnings per share (2023: 2.0 times). Subject to
Section 172(1) Statement
In accordance with Section 172(1) of the
Companies Act 2006, we as a Board have
aduty to promote the success of Rotork for
thebenefit of Rotork's members. In doing
so, theBoard has regard for the interests of
ourpeople, the success of our relationships
withsuppliers and customers, the impact
ofour operations on thecommunity and
the environment, the desirability of
maintaining a reputation for highstandards
of business conduct and the consequences
of decisions inthe long term. Stakeholder
considerations are woven throughout all
Board discussions and decisions.
Further information on our stakeholder
engagement, can be found on pages 106
to111 of the Corporate Governance report.
Details on how we have engaged with our
stakeholders on our sustainability strategy
canbe found on page 36.
shareholder approval, the 2024 final dividend
will be paid on 3 June 2025, to ordinary
shareholders on the register at the close of
business on 25 April 2025. The last date to
electfor the Dividend Reinvestment Plan (DRIP)
is 12 May 2025.
Consistent with the Group’s stated capital
allocation policy, the Board has decided to
return a prudent level of cash to shareholders
while retaining a strong balance sheet. As a
result, Rotork will be commencing a share
buyback programme of £50m.
Board update
Tim Cobbold stepped down as a Director of
Rotork in December 2024, having been our
Senior Independent non-executive Director and
Non-executive Director for Workforce Engagement.
We would like to thank Tim for his considerable
contribution to Rotork over the last six years, and
we wish him all the best in his role as Chair of
Spirax Group plc. I am pleased that with effect
from 1 January 2025 Andrew Heath agreed
tobecome Rotork’s Senior Independent
non-executive Director, and that Vanessa Simms
agreed to become Rotork’s Non-executive
Director for Workforce Engagement.
I was pleased to recently welcome a new
non-executive director to Rotork. Svein Richard
Brandtzæg joined the Board on 20 November
2024. Svein Richard is currently Chair of
dormakaba Holding AG, a non-executive
director of Mondi plc and also Chair of the
Council on Ethics for Norges Bank Investment
Management. Svein Richard has further
strengthened the diverse mix of skills and
experience on the Board and was appointed
Chair of the Remuneration Committee with
effect from 1 January 2025.
“ The Rotork Board knows that
delivering the Group’s purpose
and strategy would not be
possible without its people.
Ourteam isexceptional and
continually focused on delivering
customer value and innovation
ineverything it does.”
Dorothy Thompson, CBE
Chair
People
The Rotork Board recognises that achieving our
purpose and delivering on our strategy are only
possible through us having an exceptional team.
Its unwavering focus on delivering customer
value and driving innovation is truly commendable.
I am proud of how our team has embraced the
Growth+ strategy and the solid results achieved
in 2024.
On behalf of the Board, I extend our heartfelt
thanks to all Rotork colleagues for their dedication
and commitment throughout the year.
Dorothy Thompson, CBE
Chair
10 March 2025
rotork.com Rotork Annual Report 20249
Chair’s statement continued Strategic report Corporate governance Financial statements
Environmental performance
Sustainability is a major focus for Rotork. Whilst
our impact in enabling our customers to improve
their environmental performance likely exceeds
the Group's environmental footprint, the latter
isno less important. Our total scope 1 and 2
(market-based) emissions decreased by 7%
in2024 compared with 2023, reflecting the
implementation of energy efficiency projects
and investment in on-site renewable generation.
Our SBTi-validated near-term greenhouse gas
(GHG) emissions reduction targets are:
• To reduce our absolute scope 1 and 2 GHG
emissions by 42% by 2030 from a 2020
baseyear.
• To reduce our absolute scope 3 GHG
emissions from the use of sold products
by25% by 2030 from a 2020 base year.
• That at least 25% of our suppliers by
emissions covering purchased goods and
services will have science-based targets
by2027.
We target net-zero by 2035 for scopes 1 and 2
and by 2045 for scope 3.
Underlining the importance we attach to
achieving our net-zero targets, scopes 1 and 2
GHG reduction targets are included in our senior
team’s long-term remuneration opportunity.
The sustainability highlight of the year was the
opening of our new China manufacturing facility
which was designed with sustainability as a key
priority and attained a LEED Gold certification.
We completed a project to decarbonise heating
at our Manchester (UK) facility. Elsewhere we
refreshed our Task Force on Climate-related
Financial Disclosures (TCFD) approach and
disclosures and commenced our preparations
forthe EU Corporate Sustainability Reporting
Directive (CSRD), including conducting our first
double materiality assessment. Rotork is rated
AAA in the MSCI ESG ratings assessment.
“ We made strong progress in 2024,
deliveringgood OCC sales growth, healthy
marginimprovement and a particularly
strong cash flow performance."
Kiet Huynh
Chief Executive Officer
Growth+ delivering our vision
In 2024, Rotork achieved significant progress,
atestament to the seamless collaboration of our
3,500-strong team. Our commitment to health,
safety, and environmental excellence remained
unwavering, delivering outstanding results once
again. We continued to advance our Growth+
strategy, with its benefits becoming increasingly
evident. Financially, we delivered a solid
performance, with revenues growing by highsingle
digits year-on-year on an organic constantcurrency
basis, and an improved adjusted operating margin.
Health, safety & wellbeing
The safety of our people, partners and visitors
isour number one priority, and our objective
forhealth and safety is zero harm. In 2024, we
recorded a lost-time injury rate of 0.08, in line
with the 0.08 recorded in 2023. Our total
recordable incident rate was 0.22 (2023: 0.26).
In 2024, we transitioned from our internally
managed pulse survey, which primarily measured
employee satisfaction, to a comprehensive
engagement survey conducted with a third-party
partner. This strategic shift allows us to benchmark
our engagement levels against industry standards
and enhance our efforts to foster meaningful
engagement across Rotork.
We were pleased that 80% of our employees
participated in the new survey. We retained our
‘Rotork as a Place to Work’ question and scored
7.1 out of 10 in 2024.
The insights gained from this new survey will
support the work we have done in 2024 to
develop our Company culture, enabling us to
measure effectively and cultivate our cultural
initiatives in the years to come.
We have a committed team who are proud
towork at Rotork and determined to deliver
onour Growth+ ambitions. We offer our
thanksand appreciation for all their efforts
throughout 2024.
Kiet Huynh
Chief Executive Officer
Rotork Annual Report 2024 rotork.com10
Chief Executive Officer’s statement Strategic report Corporate governance Financial statements
“ The safety of our people,
partners and visitors is our
number one priority, and our
vision for health and safety
is zero harm. I want to
thankevery member of our
committed team for their
efforts in driving safety
during the year.”
Kiet Huynh
Chief Executive Officer
ourstrategy are three pillars: Target Segments,
Customer Value and Innovative Products &
Services, each underpinned by our focus on
‘Enabling a Sustainable Future’.
Our ‘Target Segments’ are key segments within
each of our divisions where there are significant
opportunities for profitable growth. We are
prioritising investment into these areas, helping
us to grow faster than our overall markets. We
have already seen significant benefits from our
focus on Target Segments which represented
around half of Group sales in 2024 and grew
9% year-on-year OCC.
Target Segment successes in Oil & Gas included
in upstream and midstream electrification and
LNG. In upstream electrification, Rotork supplied
electric actuators and related services to a North
Sea oil and gas producer for its latest platform.
The platform is designed to be remotely operated
and to require only occasional maintenance
visits. Also in upstream electrification, Rotork
received a significant order from a major oil and
gas producer for electric actuators equipped
with integral shutdown batteries which will be
retrofitted on onshore wellheads, replacing
older, less advanced models previously supplied
by a competitor. In LNG, revenues grew in the
period as earlier liquefaction orders started
toship. Rotork is positioned to support the
liquefaction capacity increase expected in
2025and beyond.
Successes in Chemical, Process & Industrial
included activity in the Target Segments of
specialty chemicals and mining. In specialty
chemicals, Rotork supplied equipment to a major
greenfield urea plant being built in Western
Australia. Demand for urea is forecast to grow
rapidly, driven by agricultural and transportation
applications. In mining, Rotork electric actuators
were selected by a customer for an important
water reuse project. When the project is
completed, the mine will no longer have to draw
water required for processing from a local river.
HSE manager, Chennai,
India, demonstrating
health and safety
practices
Growth+ strategy
The starting point of our Growth+ strategy is
ourPurpose, ‘keeping the world flowing for
future generations’. Our Purpose is a powerful
motivator and recognises the role we play in
making our world a great place to live, and the
role we play in helping improve the safety,
environmental and social performances of not
just ourselves but also our end users, customers,
suppliers and communities.
Our vision is for Rotork to be the leader in
intelligent flow control. This recognises the
ever-increasing importance of connectivity to
ourend users. Today’s intelligent flow control
systems ensure safety, are reliable, efficient and
easy to use, and play a vital role in ensuring the
uptime of our end users’ operations (including
through predictive and preventative maintenance).
Our financial ambition is to deliver mid to high
single-digit revenue growth and mid-20s
adjusted operating margins over time. Three
powerful megatrends help drive our growth:
automation, electrification and digitalisation, as
well as the trends of sustainability, decarbonisation,
energy security, water scarcity and water quality.
Our Growth+ strategy is designed to drive our
growth and to balance making investments with
achieving margin progression. At the core of
In Water & Power, examples of Target Segment
successes included in wastewater treatment
andalternative energy. The reuse of water is
increasingly common, including for irrigation
andindustrial processes. Rotork electric
actuators were chosen for a major water
reclamation project in Singapore. In alternative
energy, geothermal power has the potential to
be a bigger source of renewable energy than
wind and Rotork products play an important
rolein geothermal plants, including in a major
geothermal facility in New Zealand.
We continued to make strong progress under
the Customer Value pillar, which puts the
customer at the forefront of everything we do.
During the year we launched our new Group
website. The new website is an important step in
a multi-year programme of customer experience
improvement. In November we held the formal
opening ceremony for our new facility in China.
The 23,000m
2
facility is strategically located in
Changshu and was developed with sustainability
as a key priority. Its 2,500 roof-mounted solar
panels will generate an estimated 1,500 MWh
ofrenewable electricity annually.
In Innovative Products & Services, we launched
integrated ethernet functionality for our IQ range.
This is an important product enhancement
which further differentiates our flagship electric
actuators, extending compatibility, enabling
higher data transfer volume and speeds,
eliminating the requirement for gateway devices
and operating seamlessly with our intelligent
asset management (iAM) system. Integrated
ethernet has multiple applications across all
three Rotork sectors and the launch has been
particularly well received by water industry
endusers.
rotork.com Rotork Annual Report 202411
Chief Executive Officer’s statement continued Strategic report Corporate governance Financial statements
The downstream oil and gas sector was particularly
active in 2024, with another significant year for
net refining capacity additions globally and for
the ‘replumbing’ of hydrocarbon transportation
and storage networks necessitated by sanctions
on Russia. The near-term outlook remains positive,
with more years of net refining additions in
prospect. In the medium term, fewer additions
are expected, with investment instead targeted
at modernisation and flexibility. Refinery shutdowns
are expected to be relatively rare with refiners
choosing instead to convert sites at end of life
toproduce renewable fuels, or to industrial hubs
(for example producing low-carbon electricity
orhydrogen) orstorage depots.
The outlook for the LNG export market is
increasingly positive. The US currently has annual
export capacity of around 90m tonnes according
to Bloomberg New Energy Finance. An additional
50m tonnes is already permitted and set to be
commissioned in the next several years, with
another 180m tonnes of capacity going through
planning stages. Additional export capacity is
also under way in Qatar and Australia.
The upstream oil and gas sector grew in both
the Middle East and Europe in 2024. In the
Middle East, investment focused on major
natural gas projects in the UAE and Qatar.
Investment in Europe increased, following
several years of declines, in response to energy
security concerns. In the Americas, Mexico’s oil
and gas production was broadly unchanged
year-on-year in 2024. US unconventional
onshore activity slowed in the second half,
impacted by election uncertainty and lower
hydrocarbon prices. Following the US election,
the outlook for drilling and completion is more
positive, although higher prices may be required
for a significant pickup.
There was a generally soft backdrop to chemicals
markets in 2024, reflecting weak demand from
key end markets such as construction, automotive
and pharmaceuticals and higher energy prices
Market update
Elections played a major part in global events in
2024, with almost half of the world’s population
voting in national elections during the year
(according to Reuters). The most significant
froma market perspective was the Presidential
election in the US. The election has the potential
to have significant economic effects on global
markets, including on manufacturing and energy.
The new US government has signalled a more
local approach to its industrial strategy which
will have implications for global manufacturing.
However, we believe that any risk of increased
import tariffs to Rotork would be largely
mitigated by our predominantly local-for-local
manufacturing footprint.
Energy security and the energy transition have
been major global themes for several years
andare likely to remain so. The US’s energy
independence is expected to be of higher
priority, potentially meaning more exploration
and production activity. The energy transition
remains a priority, but with the fossil fuel
industry potentially having a greater part to play
in the transition, e.g. through LNG, biofuels,
carbon capture and hydrogen. Whilst US
emissions reduction regulations might be of
slightly lower importance at the Federal level,
these are likely to remain important at state and
industry levels.
In recent years, investment in global energy
sector infrastructure has accelerated, reflecting
both a previous period of underinvestment and
the importance of the role of hydrocarbons
inthe world’s energy mix for years to come.
Theelectrification of upstream and midstream
operations to reduce the greenhouse gas
intensity of processes that commenced with
COP26’s Global Methane Pledge (in 2021)
continues and methane emissions were again a
major topic at COP29 in Azerbaijan. The upstream
and midstream electrification sector represented
close to 10% of Rotork Group sales in 2024.
“ Our purpose recognises the
rolewe play in making our
worlda great place to live,
andthe role we play in
helping improve the safety,
environmental and social
performances of our end
users, customers, suppliers
and communities.”
Kiet Huynh
Chief Executive Officer
Daily SQDCP standup
meeting, Chennai, India
which particularly impacted the industry in
Europe, especially in bulk chemicals. However,
Rotork’s chemicals market strategy is to target
niche sectors that offer the potential for above
market growth and CPI sales into this market
grew year-on-year in 2024.
Metals and mining markets remain attractive
opportunities for Rotork. Whilst 2024 did not
see the repeat of the activity in the battery
materials sector experienced in 2023 (i.e. nickel),
the wider industry continues to invest to build
the capacity required to deliver the energy
transition and to invest in sustainability projects.
Critical HVAC refers to heating, ventilation and
air conditioning systems that are essential for
maintaining specific environmental conditions
insensitive or high-stakes environments,
including temperature, humidity and air quality.
Critical HVAC is typically specified in tunnel
ventilation, data centres, clean rooms and
industrial processes such as battery production
plants and semiconductor fabrication facilities
where the cost of downtime or failure can be
significant. Critical HVAC markets benefitted
from strong demand from data centre markets
in 2023 and 2024 and the cooling requirements
of artificial intelligence focused data centres
could represent an exciting future opportunity.
Rotork Annual Report 2024 rotork.com12
Chief Executive Officer’s statement continued Strategic report Corporate governance Financial statements
Itisapparent that tackling the climate crisis and
delivering a just energy transition at pace will
require a practical approach including a balance
of technologies, with methane emissions
reduction, LNG, carbon capture and storage,
sustainable fuels, hydrogen and direct air
capture all having significant roles to play.
Business performance
Group order intake increased 2.8% year-on-year
(6.1% on an OCC basis) to £744.3m. All three
divisions booked higher orders for the full year.
Group revenue was 4.9% higher year-on-year
(8.2% OCC) at £754.4m. Oil & Gas sales rose
8.3% (11.7% OCC), with all geographic regions
growing and Europe, Middle East & Africa
(EMEA) and Asia Pacific particularly strong. The
division’s growth was driven by the downstream
and midstream sectors with upstream sales
broadly unchanged year-on-year. CPI sales were
4.1% lower (down 1.1% OCC), with solid growth
in EMEA insufficient to offset lower sales in the
Asia Pacific and Americas regions. Water &
Power sales were up 9.5% (13.1% OCC), with
allgeographic regions delivering double-digit
growth. Both sectors grew strongly, with water
outgrowing power.
By geography, EMEA sales by destination grew
double digits (OCC) and was Rotork’s fastest
growing region. Asia Pacific revenues grew low
single digits year-on-year on an OCC basis, with
China growth ahead of the region. The Americas
region returned to growth in the second half
and full year revenues were high single digits
ahead (OCC).
In early 2025 we rebranded Rotork Site Services
under one global brand, Rotork Service. Rotork
Service is our global service network and a key
differentiator in our industry. It performed well
in 2024 with revenues growing faster than the
Group overall. Its Lifetime Management and
Reliability Services programmes have good
momentum, as does its Intelligent Asset
Management predictive analytics system.
Market update continued
The outlook for water and wastewater remains
positive with continuing investment in new and
existing infrastructure. The market is focused on
delivering water availability, improving water
quality, reducing leakage, efficient water reuse,
and automating and digitalising networks and
processes. Significant investment initiatives
worldwide are already in progress or set to
begin, including in the US, China, India, the
Middle East and the UK. The desalination
marketremains active, with projects underway
worldwide, most notably in the Middle East.
Reverse osmosis desalination is forecast to grow
high single digits over the medium term (source:
Future Market Insights).
The outlook for the global power market is
brighter than it has been for some time, driven
by electrification, economic growth, artificial
intelligence and, in the US, the repatriation of
manufacturing. In response to this accelerating
demand growth, the power generation industry
is stepping up new build activity as well as plant
modernisation, refurbishment and life extension
(including in the traditional and nuclear sectors).
Renewable energy is playing an important role
indelivering energy security as well as the energy
transition. According to the IEA, renewables’
share in final energy consumption will be nearly
20% by 2030, up from 13% in 2023. Rotork
products are specified for several applications
inoffshore wind, including in HVDC converter
cooling systems, geothermal energy plants and
concentrated solar, as well as in facilities producing
rechargeable batteries and solar panels.
Decarbonisation remains a high-potential market
for all three Rotork divisions. 2024 saw the
world’s second consecutive hottest summer on
record (according to the World Meteorological
Organization) with a number of extreme
weather events such as wildfires, droughts
andflooding. These events served to remind
usvividly of the urgency of tackling carbon
emissions and adapting to climate change.
RotorkService is managed as a separate unit
byeach of our divisions and contributed 23%
ofGroup sales (2023: 21%).
Adjusted operating profit was 8.5% higher
year-on-year (12.8% OCC) at £178.4m,
reflecting volume growth and positive net price/
mix which were partly offset by wage inflation.
Adjusted operating margins were 70bps higher
at 23.6% (100bps higher OCC) and reported
profit before tax was £140.5m. The principal
profit adjustments are costs relating to Business
Transformation and the defined benefit
schemesettlement.
Return on capital employed was 37.3%
(2023:33.9%), benefitting from an increase
inadjusted operating profit and a decrease in
capital employed. Cash conversion was 119%
(2023: 120%).
Capital allocation
We retain a strong balance sheet and had a
netcash position of £125.3m at the period end
(31 December 2023: £134.4m). This gives us
thefinancial flexibility to pursue our organic
investment plans, pay a progressive dividend and
execute our targeted M&A strategy. We regularly
review our capital needs in line with our capital
allocation strategy and have demonstrated
discipline and flexibility in using buybacks
anddividends to deliver shareholder returns.
In March 2025 we agreed to acquire Noah
Actuation (Noah) to broaden and strengthen
ourproduct offering in electric actuators. Noah
is headquartered in Seoul, South Korea and its
acquisition is fully aligned to the Growth+
strategy and to key Target Segments, especially
with Water & Power, Chemical, Process &
Industrial and upstream electrification within
Oil& Gas. We estimate that Noah will deliver
revenue and adjusted EBITDA of £17.5m and
£3.5m respectively in the twelve months to
December 2025.
Outlook
Three years into the Growth+ programme we
remain confident of delivering our financial
ambition of mid to high single digit sales growth
and mid-20s adjusted operating margins over
time. We have entered 2025 with confidence
and expect a year of progress on an OCC basis.
Kiet Huynh
Chief Executive Officer
10 March 2025
rotork.com Rotork Annual Report 202413
Chief Executive Officer’s statement continued Strategic report Corporate governance Financial statements
Financial KPIs
Sales growth, earnings quality and capital efficiency
Performance
Revenue growth %
+4.9%
Adjusted operating margin %
23.6%
Cash conversion %
119%
Return on capital employed %
37.3%
4.9
12.0
24
23
22
23.6
22.9
22.312.8
24
23
22
119
120
76
24
23
22
37.3
33.9
31.3
24
23
22
Read more about Remuneration P.131 to 158
Reasons
for choice
A key driver for the business that is
reportedfor each division and geography.
The measure enables us to track our overall
success and our progress in increasing our
market share by end market and by region.
This measure brings together the combined
effects of pricing, volume and procurement
as well as the leveraging of our operating
assets. It is also an important check on the
quality of revenuegrowth.
Our cash conversion demonstrates our
operational efficiency and enables us to
fund future growth. We consider 85%
conversion as abase level of achievement.
Itis also part of the senior management
reward system.
We use this KPI to monitor theefficiency
ofour capital allocation. We also use this
ratio internally, to help Groupmanagement
monitorefficiency within Rotork’sdivisions.
How we
calculate
Increase in revenue year-on-year divided
byprior year revenue.
Adjusted operating profit shown as a
percentage of revenue. We use adjusted
operating profit as this aids comparison
yearto year.
Cash flow from operating activities
beforetax outflows, the cash impact
ofother adjustments (including Business
Transformation costs), and thepension
charge to cash adjustment, as a percentage
ofadjusted operating profit.
Adjusted operating profit as a percentage
ofaverage capital employed. Capital
employed is defined as shareholders’ funds
less net cash held, with the pension fund
surplus/deficit net of related deferred tax
deducted/added back.
Comments
onresults
Group revenue was 4.9% higher year-on-
year despite a significant foreign exchange
headwind which strengthened through
thesecond half. Our ambition is to deliver
mid to high single digit revenue growth
year-on-year.
Adjusted operating margin was 70bps
higher year-on-year at 23.6%. Theoperating
margin was18.0%. Ourambition is to
deliver mid-20s adjusted operating margins
overtime.
Cash conversion in2024 reflects a strong
operating cash flow performance, largely
driven by improvements in working capital
including a reduction in inventory.
Return on capital employed increased
strongly during the year. Adjusted operating
profit increased by 8.5% and average capital
employed decreased by 1.6%.
Rotork Annual Report 2024 rotork.com14
Key performance indicators Strategic report Corporate governance Financial statements
Non-financial KPIs
Health, safety and environmental performance
Financial KPIs continued
8.7
14.8
13.2
24
23
22
0.22
0.26
0.53
24
23
22
-37%
-32%
-24%
24
23
22
Performance
Adjusted EPS growth %
+8.7%
Performance
Total recordable incident rate (TRIR)
0.22
Scope 1 and 2 emissions tCO
2
e
-37%
Reasons
for choice
Growth in EPS is a measure of our profit
performance, taking into account all aspects
of the income statement including the
management of our capital structure,
treasury and the Group’s tax rate.
Reasons
for choice
TRIR is used as one measure of the effectiveness
of our health and safety procedures.
Sustainability is a major focus for us.
Wetargetnet-zero by 2035 for scopes 1 and 2.
How we
calculate
Increase in adjusted basic EPS (based on
adjusted profit after tax) year-on-year
divided by the prior year adjusted basic EPS.
How we
calculate
TRIR is the number of recordable incidents
multiplied by 200,000 divided by the number
ofhours worked.
Energy usage data (scope 1 and market-based
scope2) isconverted to equivalent tonnes of
CO
2
e and compared to our 2020 baseline.
Comments
onresults
Adjusted basic EPSwas 8.7% higher
year-on-year, with the increase broadly inline
with growth in adjusted operating profit.
Comments
onresults
TRIR for 2024 was 0.22, an improvement on
the0.26 in 2023. Our proactive approach is to
continuously identify weaknesses in our safety
processes and remove or mitigate them.
Energy efficiency projects, investment in
on-site renewable generation and sourcing
ofrenewable electricity resulted in a 7%
year-on-year reduction in emissions in 2024.
rotork.com Rotork Annual Report 202415
Key performance indicators continued Strategic report Corporate governance Financial statements
Rotork: keeping the world flowing
forfuture generations
Our financial ambition is mid to high single digit
revenue growth and mid-20sadjusted operating
margins over time. We will deliver this ambition
whilstperforming for our customers, our people
and the environment.
Ambitious
growthtargets
Strong operating
leverage
Leading
returns
Highly cash
generative
Committed to
sustainability
Disciplined
capitalallocation
Targeting mid to high
single digit revenuegrowth
We are the global leader
inhighly attractive growth
markets that have high
barriersto entry and are
relatively concentrated.
Ourserved markets are
benefitting fromthe
megatrends of automation,
electrification and
digitalisation that are
transforming industry.
Weaim to outgrow them
through the implementation
ofour Growth+ strategy.
Higher sales boost
profits significantly
Our business has a high
gross margin and relatively
low variable costs meaning
high operating leverage –
higher sales boost profits
significantly and quickly.
Aswell as having high
margins and relatively low
fixed assets, the business
has a comparatively low
level of net working capital,
meaning that revenue
growth need not absorb
significant cash.
Market-leading returns
with room for upside
Our adjusted operating
profit margin was 23.6% in
2024, amongst the highest
in the industrial goods and
services sector. We target a
return tothe mid-20s over
time through operational
gearing, continuous
improvement andsourcing
and supply chaininitiatives.
We have an asset-light
business model and our
return on capital employed
(ROCE) was37.3% in 2024.
Balance sheet strength
Our Group is highly cash
generative – cash conversion
averaged 111% over the last
five years. This cash flow
enables us to fund organic
investments and paya
progressive annual dividend
and gives us the flexibility to
make strategic acquisitions.
The cash conversion of
119% in2024is largely
driven byimprovements
inworkingcapital.
Enabling a
sustainable future
Our sustainability
framework is core to
everything we do and
embedded in the Growth+
strategy through our
‘Enabling a Sustainable
Future’ initiative. Every
daywe work to help
customers better their own
environmental performance,
whilstalso working to
improveour own.
A clear capital
allocation framework
Our capital allocation
priorities are:
i) organic investment
(newproduct
development,
newmarkets,
internalsystems);
ii) ourprogressive
dividendpolicy;
iii) strategic investments;
followed by, in the
eventinthe future
wedetermine we
haveexcess cash;
iv) return of cash.
Rotork Annual Report 2024 rotork.com16
Investment case Strategic report Corporate governance Financial statements
VISION
To be the leader in intelligent flow control
PURPOSE
Keeping the world
flowing for future generations
Enabling a Sustainable Future
Helping customers better their own environmental performance,
whilst at the same time working to improve our own
Target Segments
Innovative Products
& Services
Customer Value
Our strategic pillars
Target Segments
Identifying the markets where there is significant
profitable growth opportunity
Customer Value
Improving the customer experience and
earningagreater share of their spend
Innovative Products & Services
Developing new products and services that deliver
growth and a strengthened position
Our Growth+ strategy
Growth+ is designed to deliver our ambition of mid to high single digit
revenuegrowthand mid-20s adjusted operating margins over time.
Read more P.18 to 23
rotork.com Rotork Annual Report 202417
Our strategy Strategic report Corporate governance Financial statements
Strategy
Our first Growth+ pillar is ‘target segments’.
Wehave identified key segments within each
ofour divisions where we have the right to play
and where there are significant opportunities for
profitable growth. We will prioritise investment
into these areas, helping us to grow faster than
our overall markets. The focusing on these
segments does not mean we will stop playing
inother areas – our core segments – where we
anticipate there will still be market growth.
We estimate that the segments targeted by the
Oil & Gas division will grow high single digit in
the coming years, those targeted by CPI will
grow low double digits and those targeted by
Water & Power mid to high single digit. We
estimate the combined market size of our
chosen target segments to be £4.0bn and
theircombined market growth rate to be high
single digits. Our target segments represent
around half of Group sales currently.
Target segments by division
Oil & Gas
• Upstream electrification
• Asia infrastructure growth
• LNG (energy transition bridge)
• Brownfield opportunities
Water & Power
• Water infrastructure
• Water, wastewater and treatment
• Desalination
• Alternative energy
Chemical, Process & Industrial
• Chemical
• HVAC
• Mining
Decarbonisation is a target segment
forall Rotork divisions.
Target segments
“ The benefits of the target
segment approach under
Growth+ are evident. Target
segment sales are growing
strongly, particularly in
wastewater treatment,
specialtychemicals, LNG and
upstream and midstream
oilandgaselectrification.”
Kiet Huynh
Chief Executive Officer
Progress during 2024
• Target segments represented around half of
Group sales in 2024 and grew 9% YoY OCC.
• Successes in Oil & Gas included in upstream
and midstream electrification and LNG.
Rotork is well positioned to support the
liquefaction capacity increase expected in
2025 and beyond.
• CPI successes included activity in specialty
chemicals and mining. In specialty chemicals,
we supplied equipment to a major greenfield
urea plant being built in Western Australia.
• Water & Power supplied electric actuators
toa major water reclamation project in
Singapore and to a geothermal plant in
NewZealand.
Investing in identified
markets where there is
significant profitable
growthopportunity.
18
Our strategy continued Strategic report Corporate governance Financial statements
Rotork Annual Report 2024 rotork.com
Target segments
Division: Oil & Gas
Segment: upstream and
midstreamelectrification
The oil and gas industry is increasingly looking
to electrify operations to reduce their carbon
intensity. There are two methods of electrification:
(i) replacing equipment running on hydrocarbon
fuel (e.g. diesel powered pumps) with equipment
powered by electricity; and/or (ii) converting
pneumatic or hydraulic powered systems to
electrically powered ones. The second of these
also improves energy efficiency, allows for more
compact production infrastructure, and improves
control. It can also reduce direct and/or indirect
methane emissions.
Why the focus on methane emissions?
Fugitive methane emissions from energy
production are estimated to contribute
around 6% of global greenhouse gas
emissions annually (source: Our World in
Data). Methane is a potent greenhouse gas,
significantly more powerful than CO
2
at
warming the atmosphere.
Read more: www.ccacoalition.org/resources/
fossil-fuels-factsheet-2024
Target segments continued
Supporting customers
ineliminating their
methaneemissions
Oil and gas customers are seeking zero-emission
emergency shutdown solutions for use on
existing wellheads and pipelines. Rotork
hasengineered a modular electro-hydraulic
actuator range that combines the simplicity
of electric operation with the high torque
ofhydraulics. Electro-hydraulic actuators
havezero methane emissions and low power
consumption and can be used in applications
requiring the highest safety certifications,
including for retro-fit onto existing fluid
power actuators.
Strategic report Corporate governance Financial statements
19rotork.com Rotork Annual Report 2024
Our strategy continued Strategic report Corporate governance Financial statements
Customer value
Our vision is aseamless
customer experience.
Rotork Annual Report 2024 rotork.com
Strategy
We want to put the value we provide to our
customers at the forefront of everything we do.
To achieve this we need to further improve our
company-wide processes, to streamline these
and to break down any silos. To deliver these
processes we need our highly trained teams –
wherever they are in the world – to be working
using one modern enterprise resource system.
We are working on three main areas. Go to
market enhancement is about strengthening
ourrelationships with customers and maximising
our opportunities with them. Our global supply
chain programme aims to improve our delivery
and lead times and respond to any supply chain
issues. Improved customer experience is about
re-engineering our business processes, allowing
us to quote quicker and be more responsive to
our customers.
Progress during 2024
We continued to make good progress during
theyear. Our business process re-engineering
programme is well underway with the Microsoft
Dynamics D365 rollout continuing and is already
making Rotork easier to do business with.
InNovember we held the formal opening
ceremony for our new facility in China.
The23,000m
2
facility is strategically located in
Changshu and was developed with sustainability
as a key priority. Its2,500 roof-mounted solar
panels will generate an estimated 1,500 MWh of
renewable electricity annually. We launched our
new Group website in the final quarter. The new
website is an important step in a multi-year
programme of customer experience improvement,
providing the foundation for future customer
portals that will link to our iAM technology
forpredictive maintenance and performance
ande-commerce.
“ Making Rotork easier to do
business with is a key priority.”
Lyndsey Norris
Business Transformation Director
Customer value initiatives
Go to market enhancement
• Global key account management
• Project pursuit programme
• Sales force academy
• Rotork Service network expansion
Global supply chain programme
• Lead time reduction programme
• Global transportation programme
• Global shortages programme
Improved customer experience
• Business process re-engineering
• Faster quotations; on-time delivery
Rotork Annual Report 2024 rotork.com20
Our strategy continued Strategic report Corporate governance Financial statements
Customer value continued
Responsiveness programme
Our Customer Responsiveness Programme
was completed by 400 customer service
colleagues from around the world. The
‘Creating Great Intentional Customer
Experiences’ course introduced a new
competency framework and developed the
customer relationship skills of our sales teams,
helping make us easier to do business with.
Third-party call handling system
We successfully implemented a third-party
call handling system to support our customer
service teams and other colleagues and
manage unwanted calls. The system is already
freeing up significant time during which
customer service teams can focus on
customer quotes, enquiries and orders.
rotork.com Rotork Annual Report 202421
Our strategy continued Strategic report Corporate governance Financial statements
Rotork Service training
videos being produced at
acustomer's tank
storage facility in Germany
Innovation is the
lifebloodofRotork.
“ Our success depends on
innovation and this year
we’vemade great progress
onourethernet technology.”
Ross Pascoe
Chief Technology Officer
Strategy
Innovation is the lifeblood of Rotork. Over the
last several years we have brought our teams
together and streamlined how we deliver
innovation and the development of new products
and services. Our teams are focused on projects
which are aligned with our chosen target
segments, customer value and our ‘enabling
asustainable future’ principle. Key innovation
drivers include electrification, connectivity, data
analytics and product efficiency. Additionally,
our engineers remain focused on product-in-use,
and increasingly lifecycle, emissions. Whilst we
continue to innovate and develop new products
we are always weighing ‘make versus buy’
arguments, recognising that in-house product
development is not always the fastest route
tosuccessful commercialisation.
Progress during 2024
We launched Integrated Ethernet functionality
for our IQ3 Pro range in the summer. We are the
first in the industry to bring plug-and-play digital
connectivity to explosion-proof systems – making
them safer, smarter, and easier to use. With
Integrated Ethernet, end users can connect these
systems directly to their control systems and
access real-time performance data, improving
safety and efficiency. In January 2025 we
launched Rotork Service, the successor to Rotork
Site Services. Rotork Service offers comprehensive
support to customers through four expanded
key offerings: connected services (digital offerings
including iAM), field services, reliability services
and support services.
Innovative products & services
Rotork Annual Report 2024 rotork.comRotork Annual Report 2024 rotork.com22
Our strategy continued Strategic report Corporate governance Financial statements
Innovative products & services continued
Integrated Ethernet
Integrated Ethernet functionality is an
important product enhancement for our
IQ3Pro range. Integrated Ethernet further
differentiates our flagship electric actuators,
extending compatibility, enabling higher
datatransfer volume and speeds, eliminating
the requirement for gateway devices and
operating seamlessly with our intelligent
assetmanagement system (iAM). Integrated
Ethernet has multiple applications across all
three Rotork sectors and the launch has been
particularly well received by water industry
end users.
23rotork.com Rotork Annual Report 2024
Our strategy continued Strategic report Corporate governance Financial statements
IQT3 Pro Integrated
Ethernet demonstration
at Valve World 2024
inDüsseldorf
Divisional revenue was ahead 8.3% year-on-year
and 11.7% year-on-year (OCC). The midstream
and downstream sectors grew strongly whereas
upstream sales were slightly lower due to the
non-repeat of offshore projects. Downstream
sales represented 52% of the total (49% in
2023), upstream 24% (27%) and midstream
24% (24%). Downstream sector sales were
double-digits higher year-on-year benefitting
from increased refinery and storage activity.
EMEA sales grew strongly year-on-year and the
region was the fastest growing, with Middle East
/ Africa growing robustly and the midstream
electrification sector particularly active. Americas
sales were ahead mid to high single digit whilst
APAC sales grew low double digits, driven by
strong sales growth in India.
The division’s adjusted operating profit was
£92.0m, 10.0% up year-on-year. The 40 basis
point adjusted operating profit margin improvement
reflected higher volumes which were partly
offset by adverse mix and investment in the
division’s commercial teams.
Key takeaways
• Revenue 11.7% higher OCC driven by spend
on increasing output, improving productivity
and decarbonisation.
• Downstream strength due to refinery and
storage activity.
• Adj. operating margins rose 40bps to
arecord 25.9% with higher sales partly
offsetby adverse mix.
£m 2024 2023 Change OCC change
Revenue 355.5 328.4 +8.3% +11.7%
Adjusted operating profit 92.0 83.6 +10.0% +13.6%
Adjusted operating margin 25.9% 25.5% +40bps +50bps
Oil & Gas’ focus on Target Segments during the
period delivered notable successes in electrification
,
Asia infrastructure, decarbonisation and Rotork
Service. One notable win in upstream electrification
was supplying actuators to a Netherlands-based
customer for its latest oil and gas platform,
which is not only electrified but for safety
reasons is designed to be ‘not normally manned’,
requiring only two 14-day maintenance visits per
year. In midstream, the division received follow-on
orders from a major liquefaction project in Texas
and several pipeline electrification projects including
in Asia Pacific and North America. In the
downstream, there was significant activity in
both hydrocarbon storage and refining. The
division supplied IQ3 actuators to a major tank
farm expansion in South Korea which will enable
increased LNG storage. LNG is widely seen as a
bridge fuel in the energy transition for its lower
carbon emissions compared to oil and coal, its
flexibility and its abundance. Successes in
refining included major automation/modernisation
projects in EMEA, the Americas and Asia Pacific.
Momentum in the oil and
gassector remained strong
through 2024. Hydrocarbon
prices remained broadly above
investment incentive levels
andmost sectors saw higher
customer spend, targeting
increased output, improved
productivity, electrification and
decarbonisation. The industry’s
electrification initiative
continued with increased
activity in the upstream and
midstream sectors. These
sectors represented close to
10% of Rotork Group sales in
2024. Investments to increase
the world’s LNG export
capacity remain ongoing.
Division: Oil & Gas
% of Group revenue
47%
Rotork Annual Report 2024 rotork.com24
Divisional review Strategic report Corporate governance Financial statements
Oil & Gas: case studies
Segment: Target
Sector: Upstream electrification
Region: Americas
Engineers are increasingly demanding
high-specification electric actuators for
controlling production wellheads. These
actuators enable remote operation, enhance
production efficiency and provide quick
shut-off capabilities in emergencies, such as
leaks. In 2024, Rotork received a significant
order from a major producer for electric
actuators equipped with integral shutdown
batteries. These actuators will be retrofitted,
replacing older, more basic models previously
supplied by a competitor.
Segment: Core
Sector: Gas storage
Region: Asia Pacific
LNG is widely seen as a bridge fuel in the
energy transition for its lower carbon emissions
compared to oil and coal, its flexibility and its
abundance. For LNG storage operators Rotork
is often a 'first to mind' supplier of electric
actuators for control and emergency shutdown
duties. In 2024, Rotork was pleased to supply
IQ3 actuators to a major tank farm expansion
in South Korea.
Segment: Target
Sector: Upstream electrification
Region: EMEA
Modern North Sea oil and gas production
platforms are typically electrified, connecting
to electricity networks instead of relying on
traditional diesel or gas generators. These
platforms are also highly automated. In 2024,
Rotork supplied electric actuators and related
services to a Netherlands based customer for
its latest platform, which is designed to be
‘not normally manned’ and requires only two
14-day maintenance visits per year.
rotork.com Rotork Annual Report 202425
Divisional review continued Strategic report Corporate governance Financial statements
The division delivered an encouraging second
half performance, despite economic weakness
ina number of regions including most notably
China. The division’s performance clearly
benefitted from the pursuit of its chosen
Growth+ Target Segments such as the focus on
specialty chemicals and critical HVAC (including
sales into data centres), as well as strength in
core segments including marine.
Divisional revenues were 4.1% lower year-on-year
at £205.0m and 1.1% lower year-on-year on an
OCC basis, with the decline largely the result
ofreduced mining sector large project activity,
following three years of strong sales growth. By
destination, EMEA sales grew mid to high single
digits (OCC), with all subregions higher. Asia
Pacific sales were lower, despite good growth in
India. China sales declined low single digit in the
full year (OCC) but were unchanged year-on-year
in the second half. Americas sales grew low
single digits (OCC).
The division’s adjusted operating profit was
£53.0m, 3.4% higher than prior year. Adjusted
operating margin rose 180 basis points to
25.8%. The increase in adjusted operating
margin largely reflected positive mix as well
asdisciplined cost management.
Key takeaways
• Revenue 1.1% lower OCC largely due to
reduced mining activity.
• Sales growth resumed in the second half
ofthe period.
• Solid growth in target segments chemicals
and critical HVAC.
• Adj. operating margin benefited from positive
price/mix as well as cost control initiatives.
£m 2024 2023 Change OCC change
Revenue 205.0 213.7 -4.1% -1.1%
Adjusted operating profit 53.0 51.3 +3.4% +7.4%
Adjusted operating margin 25.8% 24.0% +180bps +210bps
Rotork’s electric and fluid power actuators
andinstruments were selected by innovative
customers for use in their energy transition
projects. Rotork supplied several hundred flow
control actuators to a major greenfield urea
plant being built in Western Australia. The plant
has been designed to minimise emissions and
with the capacity to achieve net-zero carbon
by2050. Demand for urea is forecast to grow
rapidly (source: the International Renewable
Energy Agency) driven by applications including
agriculture and transportation. Rotork’s
actuators were chosen by an innovative steel
plant in Sweden which has switched to
fossil-free hydrogen to heat steel at its rolling
mill, produced on-site by a 20MW electrolyser.
In the critical HVAC market, data centres are
increasingly requiring higher levels of automation,
reliability and precision in their cooling, power
and fire protection systems. Rotork products
including actuators, gearboxes, chainwheels
andlimit switch boxes are regularly selected
forthese projects.
% of Group revenue
27%
CPI is a supplier of specialist
actuators and instruments for
niche critical applications in
the broad chemical, process
industry and industrial sectors.
The division serves awide
range of end markets including
specialty and other chemicals,
metals and mining, critical
HVAC, pharmaceutical, steel
and cement. The automation,
electrification, digitalisation and
decarbonisation megatrends
are important growth drivers.
Rotork has historically been
under-represented in several
ofthese markets and has the
opportunity to win market
share in the years ahead.
Division: Chemical, Process & Industrial
Rotork Annual Report 2024 rotork.com26
Divisional review Strategic report Corporate governance Financial statements
Segment: Target
Sector: Mining
Region: Americas
Copper is widely seen as the ‘energy
transition’ metal due to its role in renewable
energy infrastructure, energy storage systems
and electric vehicles. Rotork’s IQ3 electric
actuators were selected for critical flow
control applications in an important water
re-use project by a mining customer. When
the project is completed the mine will no
longer have to draw water from a local river.
Segment: Core
Sector: Marine
Region: APAC
Rotork enjoys a significant installed base in
the marine sector, a core segment for the
CPIdivision. In H1 2024, Rotork Service was
contacted by a customer wishing to complete
a major actuator overhaul at short notice.
TheRotork team successfully completed the
refurbishment, which included a full repaint,
and the reinstallation, enabling the vessel
todepart from dock on schedule.
Segment: Target
Sector: Specialty chemicals
Region: APAC
Demand for urea is forecast to grow rapidly
(source: International Renewable Energy
Agency) driven by applications including
agriculture (fertiliser) and transportation
(marine fuel). In 2024 Rotork supplied several
hundred flow control actuators to a major
greenfield urea plant being built in Western
Australia. The plant has been designed to
minimise emissions and with the capacity
toachieve net-zero carbon by 2050.
Chemical, Process & Industrial: case studies
rotork.com Rotork Annual Report 202427
Divisional review continued Strategic report Corporate governance Financial statements
Divisional sales were ahead 9.5% year-on-year
and 13.1% ahead year-on-year (OCC), with
water sector sales growing slightly faster than
those of the power sector. Asia Pacific sales
were ahead low double digits year-on-year
(OCC), with India’s ‘Water for All’ initiative
continuing to drive very strong revenue growth
in water in that country, and with the power
sector strong across the Asia Pacific region.
Americas sales grew robustly year-on-year with
all subregions strong and the region was Water
& Power’s fastest growing geography in the
period. EMEA sales grew low double digits
(OCC) despite lower power sector activity.
The division’s adjusted operating profit was
£56.4m, 21.3% higher year-on-year. Deliveries
benefitted from an improved supply chain
performance, particularly in the first half,
resulting in adjusted operating margin increasing
290 basis points to 29.1%.
In the water sector, Rotork is focused on helping
to ensure access to water and sanitation to all.
Growth of the water sector is driven by the
tailwinds of network automation, ageing
infrastructure, urbanisation and climate change
as well as water scarcity, quality and affordability
challenges. Growth of the global power market
is driven by electrification, economic growth,
artificial intelligence and, in the US, the
repatriation of manufacturing. The division made
good progress in its Target Segments of water
Key takeaways
• Sales grew double digits OCC with water
sector growing slightly faster than power.
• All regions delivered double digits growth OCC.
• Target Segments of desalination and water
infrastructure grew strongly.
• Adjusted operating margin +290bps.
£m 2024 2023 Change OCC change
Revenue 193.9 177.0 +9.5% +13.1%
Adjusted operating profit 56.4 46.4 +21.3% +25.8%
Adjusted operating margin 29.1% 26.2% +290bps +300bps
infrastructure (including irrigation), water
andwastewater treatment, desalination
andalternative energy during the year.
Rotork supplies electric and fluid power
actuators to many wastewater treatment plants
around the world, enabling these to provide
better quality water more efficiently. Water
&Power received additional orders in 2024
forelectric actuators to be used in a highly
energy-efficient water reclamation plant in
Singapore. Inalternative energy, offshore wind
farms generate renewable A/C electricity, which is
typically converted to high-voltage D/C electricity
(HVDC) to minimise transmission losses. This
conversion occurs on offshore platforms, which
can be as large as multiple football fields and
require critical-duty cooling systems. In 2024,
Rotork secured orders from customers for
various electric actuators, including those from
the IQ3, IQTF, BBU, and Schischek families, to
beused on platforms in the North Sea. Rotork
issupplying electric actuators to a number of
desalination projects around the world which
will provide potable water, and won new orders
from customers in the Middle East in the year.
Actuators play a critical role in desalination
plants, managing the flows of seawater and
potable water throughout the production process.
Precision control is crucial for maintaining pressures
and optimising the plant’s energy efficiency.
Water & Power is a supplier
ofpremium actuators,
predominantly electric, and
gearboxes for applications
inthe water, wastewater
andtreatment and power
generation sectors. Rotork has
significant growth opportunities
including through helping to
solve customers’ water quality
and water scarcity challenges,
aswell as the automation,
electrification and digitalisation
trends. Water and wastewater
contributed 68% of divisional
sales in the year.
Division: Water & Power
% of Group revenue
26%
Rotork Annual Report 2024 rotork.com28
Divisional review continued Strategic report Corporate governance Financial statements
Water & Power: case studies
Segment: Target
Sector: Alternative energy (power)
Region: Asia Pacific
Geothermal power, where electricity is
generated from geothermal energy, is a
renewable energy source with the potential to
surpass the global electricity generation of the
wind sector (according to the IEA). The most
significant opportunities for geothermal power
are in China, the United States and India.
Recently, Rotork’s electric actuators and
gearboxes were selected for a plant upgrade
at a major geothermal facility in New Zealand.
Segment: Target
Sector: HVDC (power)
Region: EMEA
Offshore wind farms generate renewable
A/Celectricity, which is typically converted
tohigh-voltage D/C electricity (HVDC) to
minimise transmission losses. This conversion
occurs on offshore platforms, which can be
as large as multiple football fields and require
critical-duty cooling systems. In 2024, Rotork
secured orders from customers for various
electric actuators, including those from the
IQ3, IQTF, BBU, and Schischek families.
Segment: Target
Sector: Wastewater treatment
Region: Asia Pacific
Water reclamation (or re-use) is increasingly
vital for enhancing water security and
addressing water scarcity. The recycled water
produced is used for irrigation, industrial
processes, and even drinking water. This
market holds significant potential for Rotork.
In 2024, Rotork received additional orders for
IQ3 electric actuators to be used in the highly
energy-efficient Tuas Water Reclamation
Plant in Singapore.
rotork.com Rotork Annual Report 202429
Divisional review continued Strategic report Corporate governance Financial statements
Revenue
£754m
Adjusted operating profit
£178m
Adjusted operating profit margin
23.6%
Profit before tax
£140m
The Group delivered a strong financial result
forthe year as order intake, revenue, adjusted
operating profit and adjusted operating margin
all improved. Order intake for the year was
£744.3m (2023: £723.7m), up 2.8% from the
prior year or 6.1% on an organic constant
currency (OCC) basis, with all divisions delivering
OCC growth.
Group revenue increased 8.2% on an OCC basis
to£754.4m (2023: £719.1m). On a reported basis,
revenues increased 4.9%, impacted by a foreign
exchange translation headwind of £24.1m. Double
digit OCC revenue growth in W&P of 13.1%
(9.5%reported) and O&G of 11.7% (8.3% reported)
was partially offset by a reduction in CPI of 1.1%
(-4.1% reported) which was largely due to reduced
mining project activity compared to the previous year.
Rotork Service, our global service network and
akey differentiator in our industry, performed
strongly in the year growing ahead of Group
revenues. Rotork Service is managed as a
separate unit by each of Rotork’s divisions and
contributed 23% (2023: 21%) of Group revenue.
Adjusted operating profit increased £13.9m,
or8.5%, to £178.4m, with adjusted operating
margin increasing 70bps to 23.6% (2023: 22.9%).
On an OCC basis, adjusted operating profit
increased 100bps. However adverse foreign
exchange movements of £7.1m equated to
a30bps headwind.
“ A strong financial result for the year with improvements
inorder intake, revenue and adjusted operating profit."
Ben Peacock
Chief Financial Officer
Growth+ delivering strong sales growth and margin progress
Ben Peacock
Chief Financial Officer
Financial highlights
£m 2023 Exchange Acquisitions OCC 2024 OCC change Change
Revenue 719.1 (24.1) 2.2 57.2 754.4 +8.2% +4.9%
Adjusted operating profit 164.5 (7.1) 0.9 20.1 178.4 +12.8% +8.5%
Adjusted operating margin 22.9% 23.6% +100bps +70bps
The financial review includes a mixture of GAAP measures and those which have been derived from our reported results to provide a useful
basis for measuring our operational performance. Details of these alternative performance measures are defined in full and reconciled
tostatutory measures in note 2 of the financial statements. Movements in revenue and adjusted operating profit are given on an organic
constant currency basis (see definition, which has been updated in the period, in note 2 to the financial statements) so the assessment
ofperformance is not distorted by acquisitions, disposals and movements in exchange rates.
Rotork Annual Report 2024 rotork.com30
Strategic report Corporate governance Financial statements
Financial review Strategic report Corporate governance Financial statements
Results summary
2024 2023 Change
Adjusted profit before tax £183.0m £166.3m +10.0%
Adjusted basic EPS 15.9p 14.6p +8.7%
Reported operating profit £135.9m £148.8m -8.7%
Reported operating margin 18.0% 20.7% -270bps
Reported profit before tax £140.5m £150.6m -6.8%
Reported basic EPS 12.1p 13.2p - 8.1%
Cash conversion 119% 120% —
Dividend per share 7.75p 7.20 p +7.6%
Reported operating profit for the year of
£135.9m was £12.9m unfavourable to the prior
year, with the increase in adjusted operating
profit offset by the recognition of one-time
non-cash IAS 19 settlement of £18.0m related
tothe UK defined benefit pension scheme
(seenote 26).
Net finance income was £4.6m (2023: income of
£1.9m) with the increase driven by transactional
foreign exchange gains on the Group’s hedging
of foreign exchange risk.
Adjusted profit before tax was £183.0m
(2023:£166.3m), driven by the increase in
adjusted operating profit. The reported profit
before tax was £140.5m (2023: £150.6m).
Thereconciling items between adjusted profit
before tax and reported profit before tax are
shown in the table.
Adjusted basic earnings per share was 15.9p
(2023: 14.6p), an increase of 8.7%. Reported
basic earnings per share was 12.1p (2023: 13.2p),
a decrease of 8.1%.
Adjusted items
Adjusted profit measures are presented alongside
statutory results as we believe they provide a
useful comparison of underlying business trends
and performance from one period to the next.
The Group believes alternative performance
measures, which are not considered to be a
substitute for, or superior to, International
Financial Reporting Standards (IFRS) measures,
provide stakeholders with additional helpful
information on the performance of the business.
The alternative profit measures are adjusted to
exclude amortisation of acquired intangibles,
costs related to business transformation from
implementing a new ERP system and integrating
business processes, as well as other significant
adjustments. These adjustments are made to
provide stakeholders with additional information
to assess the Group’s trading performance on
aconsistent basis. Further details on adjusted
items are provided in note 5.
Currency
The major currencies affecting the income
statement are the US dollar and the euro, both
of which weakened against sterling in 2024. The
US dollar/sterling average rate of $1.28 (2023: $1.24)
and the euro/sterling average rate of €1.18
(2023: €1.15) both provided a headwind. The
impact of these movements alongside the basket of
other currencies was a £24.1m or 3.4% headwind
to revenue and a £7.1m or 4.3% headwind to
adjusted operating profit.
The impact of currency on the Group is both
translational and transactional. Given the locations
in which we operate and the international nature
of our supply chain and sales currencies, the
impact of transaction settlement differences
canbe very different from the translation impact.
We can partially mitigate the transaction impact
through matching supply currency with sales
currency, but ultimately, we are net sellers of
both US dollars and euros. It is the net sale of
these currencies which we principally address
through our hedging policy, covering up to 75%
of net trading transactions in the next 12 months
and up to 50% between 12 and 24 months.
To estimate the impact of currency at the current
exchange rates we consider the effect of a one
cent movement versus sterling. A one euro cent
movement now results in approximately a
£250,000 (2023: £150,000) adjustment to profit
and for US dollar, and dollar-related currencies,
aone cent movement equates to approximately
a£650,000 (2023: £500,000) adjustment.
Return on capital employed (ROCE)
Our capital-efficient business model and strong
profit margins mean Rotork generates a high
ROCE. Our definition of ROCE is based on adjusted
operating profit as a return on the average net
assets excluding net cash and the pension scheme
asset/liability, net of the related deferred tax.
The average capital employed decreased 1.5%
over the year to £478.4m (2023: £485.5m).
Aswe grew revenue and expanded our adjusted
operating profit margins in the year, ROCE
increased 340bps to 37.3% (2023: 33.9%).
Adjusted earnings reconciliation
£m
Statutory
results Amortisation
Defined
benefit scheme
settlement loss
Business
transformation
costs
Other
costs
Adjusted
results
Operating profit 135.9 2.6 18.0 17.2 4.7 178.4
Profit before tax 140.5 2.6 18.0 17.2 4.7 183.0
Tax (35.7) (0.5) (4.5) (4.4) (1.1) (46.2)
Profit after tax 104.8 2.1 13.5 12.8 3.6 136.8
The table above shows the adjustments between the statutory results for the significant non-cash and other adjusting items
and the adjusted results. Note2 sets out the alternative performance measures used by the Group and how these reconcile
tothe statutory results. Further details of the adjusted items are provided in note 5.
rotork.com Rotork Annual Report 202431
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Taxation
The Group’s effective tax rate increased from
24.7% to 25.4%. Removing the impact of the
adjusted items provides a better indication of the
underlying rate and, on this basis, the adjusted
effective tax rate is 25.2% (2023: 24.5%). The
Group expects its adjusted effective tax rate to
remain higher than the standard UK rate due to
higher rates of tax in China, the US, Germany
and India.
The Group’s approach to tax continues to be
tooperate on the basis of full disclosure and
co-operation with all tax authorities and, where
possible, to mitigate the burden of tax within
thelocal legislation.
Cash generation
Cash generated from operations increased
7.5%to £212.7m (2023: £197.8m) primarily
driven by the increase in adjusted operating
profit and aconsistent cash conversion ratio
of119% (2023: 120%).
Net cash generated from operating activities
increased 19.1% to £148.8m (2023: £124.9m),
benefitting from the above and the non-repeat
of the £20m special contribution to the Rotork
Pension and Life Assurance Scheme in 2023.
However net cash generated from operating
activities was adversely impacted by an increase
in income taxes paid to £38.8m (2023: £32.8m)
and an increase in the cash flow impact of
adjusting items to £21.2m (2023: £13.5m).
Capital expenditure in the year was £14.0m
(2023: £7.3m), excluding £1.6m in capitalised
software (2023: £2.1m) and £4.3m in capitalised
1 Days’ sales outstanding is calculated on a count-back
method. The sales value including local sales taxes
isdeducted from the year-end trade receivables to
calculate the number of days sales outstanding.
product development costs (2023: £2.4m).
Capital expenditure largely related to the
completion of our new facility in China which
formally opened in November 2024. Our total
Research and Development (R&D) cash spend
was £13.4m which represented 1.8% of revenue
(2023:£13.9m and 1.9% respectively).
Net cash generated in the year was £6.4m
(2023: £36.6m). In addition to the movements
noted above, this was impacted by an increase
inshare purchases to £10.3m (2023: £2.4m) to
support future vesting of employee share plans,
dividends paid to ordinary shareholders of
£63.3m (2023: £58.8m) and the completion
ofour £50m share buyback programme
announced in 2024.
Balance sheet
The Group finished the year with a net cash
position of £125.3m (2023: £134.4m). This
included lease liabilities of £24.6m (2023: £12.0m),
the increase in the year attributed to the long-term
lease for our new facility in Changshu, China.
Net working capital in the balance sheet decreased
220bps to 25.1% of revenue (2023: 27.3%),
providing a working capital cash inflow of £7.2m
(2023: £11.9m outflow) in the year. Inventory
decreased slightly by £0.6m and trade receivables
days’ sales outstanding
1
, was largely maintained
at 56days (2023: 55 days).
During the year the Group extended liquidity
byentering into a £75m Revolving Credit Facility
(RCF) which matures in December 2027. As at
31December 2024, £nil was drawn under
theRCF.
Rotork Annual Report 2024 rotork.com32
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Financial review continued Strategic report Corporate governance Financial statements
Risk update
Geopolitical instability remains at an elevated
level with potential knock-on impacts to other
risks such as supply chain disruption. As a global
business we continue to monitor the trade
position between all locations where we are
based or have customers or suppliers and have
considered the potential impact of additional
trade barriers between these countries. Where
necessary, we will take steps to mitigate any
such changes but continue to believe they will
not materially impact the Group’s results.
Wehave included scenarios in the viability
assessment which model the impact of these
current uncertainties. The viability statement
canbe found on page 78.
Supply chain disruption risk reduced through
2024 as component shortages and constraints
reduced in comparison to prior years. Despite
this reduction, supply chain disruption continues
to be a key risk for Rotork and management
actions continue to mitigate potentially more
severe outcomes. The risk ‘decline in market
confidence’ was consolidated with the existing
‘competition’ risk, as both risks deal with
competitive forces. As a result, the competition
risk has increased. Business change risk has
reduced due to the increase in mitigating actions
to deliver our various Growth+ programmes.
Emerging risks and opportunities continue to
bemonitored and reviewed, which are those
risksand opportunities that may be ambiguous,
uncertain, and difficult to assess. Risks and
opportunities under review include those in relation
to geopolitical events, technological, social,
environmental, climate and sustainability risks.
Credit management
The Group’s credit risk is primarily attributable
totrade receivables, with the risk spread over a
large number of countries and customers, and no
significant concentration of risk. Creditworthiness
checks are undertaken before entering into
contracts or commencing trade with new
customers, and in companies where insurance
cover operates, the authorisation process works
in conjunction with the insurer, taking advantage
of their market intelligence. We maintained
coverage of the credit insurance policy during
the year and have cover in place for virtually all
of our companies at an aggregate of 80% of
receivables. Where appropriate, we use trade
finance instruments such as letters of credit
tomitigate any identified risk.
Treasury
The Group operates a centralised treasury
function managed by a Treasury Committee,
chaired by me and also comprising the Group
Financial Controller and Group Treasurer. The
Committee meets regularly to consider foreign
currency exposure, control over deposits,
funding requirements and cash management.
The Group Treasurer monitors compliance with
the treasury policies and is responsible for
overseeing all the Group’s banking relationships.
A Subsidiary Treasury Policy restricts the actions
subsidiaries can take, and the Group Treasury
Policy and Terms of Reference define the
responsibilities of the Group Treasurer and
Treasury Committee.
Where appropriate, the Group uses financial
instruments to hedge significant currency
transactions, principally forward exchange
contracts and swaps. These financial instruments
are used to reduce volatility which might affect
the Group’s cash or income statement. In
assessing the level of cash flows to hedge with
forward exchange contracts, the maximum cover
taken is 75% of net forecast flows. The Board
receives treasury reports which summarise the
Group’s foreign currency hedging position,
distribution of cash balances and any significant
changes to banking relationships.
Retirement benefits
The Group accounts for post-retirement benefits
in accordance with IAS 19, Employee Benefits.
The balance sheet reflects the net liabilities of
these schemes at 31 December 2024 based on
the market value of the assets at that date, and
the valuation of liabilities using year-end AA
corporate bond yields. We closed both the
maindefined benefit pension schemes to new
entrants – the UK scheme in 2003 and the US
scheme in 2009 – to reduce the risk of volatility
of the Group’s liabilities. In 2018 we further
reduced the risk of volatility when we completed
the closure to future accrual of both the UK
andUS schemes. Members of the defined
benefit schemes were transferred onto the
relevant defined contribution plan operating
intheir country.
In 2023, the Group made a special contribution
of £20m to the Rotork Pension and Life Assurance
Scheme (UK Scheme). This contribution, together
with some of the existing assets, was used to
purchase a bulk annuity covering the UK scheme’s
existing pensioner liabilities. This was accounted
for as a buy-in. During the year the UK Scheme
completed a further bulk annuity with the full
premium amounting to £70m, largely to cover
deferred pensioners. This second bulk annuity has
been accounted for as a settlement under IAS 19.
Further details on the risk transfer and associated
settlement loss are provided in note 26.
The IAS 19 funding position of the UK and US
schemes reduced from a net surplus of £9.1m
in2023 to a net deficit of £3.6m in 2024. The
schemes’ assets reduced in value by £28.9m
(2023: increase of £19.0m) and the schemes’
liabilities decreased by £16.1m (2023: increase
of£1.8m). The Group paid total contributions
of£4.1m over the year (2023: £26.5m).
Dividends
The Board is proposing a final dividend of 5.00p
per share. When taken together with the 2.75p
interim dividend paid in September 2024, the full
year dividend of 7.75p (2023: 7.20p per share)
represents a 7.6% increase in dividends over the
prior year.
Ben Peacock
Chief Financial Officer
10 March 2025
rotork.com Rotork Annual Report 202433
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Financial review continued Strategic report Corporate governance Financial statements
Sustainability
review
In this section
35 Sustainability framework
36 Our progress and forward-looking statement
37 Materiality overview
38 Operating responsibly
52 Enabling a sustainable future
57 Making a positive social impact
64 ESG and sustainability governance, integration
and measurement
66 Sustainability Accounting Standards Board
(SASB) Index
Our business and products can
enablethetransition to net-zero
whilepositively impacting our
peopleand local communities.
Rotork Annual Report 2024 rotork.com34
Sustainability review Strategic report Corporate governance Financial statements
Sustainability framework
A leader in sustainability
MSCI:
AAA (leader)
S&P Global CSA:
94th percentile in
Machinery and Electrical
Equipment industry
CDP Climate: B
CDP Water Security: B-
Sustainalytics ESG
Medium risk
FTSE4Good:
Constituent of the
FTSE4Good index
Operating
responsibly
Our mission: to run safe, efficient
and sustainable operations.
Read more P.38
Our commitments
SDG targets:
12.2, 12.5,
12.6
We will maintain strong
safetyperformance through
ourtotal recordable incident
rate(TRIR) as we strive for azero
harm workplace.
We will embed social,
ethicalandenvironmental
considerations into our Global
Supplier Excellence Programme.
Progress
in 2024
TRIR improved to 0.22.
SDG targets:
13.1, 13.3
We will reduce our
carbonemissions.
• Reduce emissions per £1m
revenue year-on-year.
• To reduce scope 1 and 2
emissions by 42% by 2030.
• To reduce scope 3 (use of sold
products) emissions by 25%
by 2030.
• Net-zero for scope 1 and 2 by
2035 and for scope 3 by 2045.
Progress
in 2024
37% reduction in operational
emissions vs 2020.
Our business and products
can enable the transition
tonet-zero while positively
impacting our people and
local communities.
Enabling a
sustainablefuture
Our mission: to help drive the
transition to a cleaner future,
whereenvironmental resources
areused responsibly.
Read more P.52
Our commitments
SDG target:
6.4
We will enable sustainable
management of water resources
and greater water efficiency for
our customers.
SDG target:
7.3
We will support customers’
energy and emissions reduction
and enable them to incorporate
renewable energy into
theiroperations.
SDG targets:
9.1, 9.4
We will play our part to enable
the global energy transition
andsupport a cleaner, more
sustainable future.
Progress
in 2024
30% of revenue from our
eco-transition portfolio.
Making a positive
socialimpact
Our mission: to support thriving,
fair and resilient communities.
Read more P.57
Our commitments
SDG target:
5.5
We will develop and deliver
initiatives to drive greater
genderand ethnic diversity.
SDG targets:
8.5, 8.7
We will contribute to a
fairersociety more broadly,
including ensuring 100%
ofemployees are covered
byourFair Pay Framework.
Progress
in 2024
Colleague engagement score
maintained a strong score of7.1.
rotork.com Rotork Annual Report 202435
Sustainability review continued Strategic report Corporate governance Financial statements
Our progress and forward-looking statement
Our purpose enables
ustosupport the net-zero
transition while creating
apositive impact on our
peopleand communities.
Our progress
2024 was another successful year for the
programme. We maintained our strong ESG
ratings in key benchmarks including MSCI
(AAArated), S&P Global’s Corporate Sustainability
Assessment (94th percentile for the Machinery
and Electrical Equipment industry), and CDP
Climate (B rated). The proportion of total sales
from our eco-transition portfolio increased to
30% in 2024 (29.5% in 2023) and several case
studies ofsustainable product applications are
available on pages 52 to 56.
Our preparations for the reporting requirements
of the EU Corporate Sustainability Reporting
Directive progressed this year. We launched a
double materiality assessment process in order
to identify our material impacts, risks and
opportunities. We also commissioned an assurance
readiness assessment for our greenhouse gas
reporting, specifically scopes 1, 2 and our three
largest scope 3 categories. As a result, our
assurance of scope 1 and 2 emissions in 2024
now uses the ISAE 3000 standard.
We continued our strong operational performance
in 2024. Our Health and Safety team delivered
further audit, training and engagement
programmes, successfully reducing our total
recordable incident rate (TRIR) to 0.22. We nearly
achieved our 2030 climate target for scope 1
and 2 emissions, with 2024 operational emissions
37% below our 2020 baseline (target: 42%).
Thesereductions were achieved through the
useof rooftop solar power at our new facility
inChina, the transition to an electric heating
system at our Manchester facility, and an overall
increase in the use of renewable power across
our sites. We also undertook resource efficiency
audits at 10 facilities during the year, providing
us with a project pipeline of energy, water, and
waste reduction opportunities for future years.
One of our key projects in 2025 will be the
installation of 0.4 MW of solar capacity at
ourLucca facility.
We continue to focus on managing the lifecycle
impact of our products. Following the rollout
oflifecycle assessment (LCA) software in 2023,
we undertook four LCAs in 2024. In addition,
our Procurement function established a cost
engineering team, which focuses on delivering
component-level efficiencies through design.
Our teams successfully incorporated recycled
materials into the design of our IQ3’s Integrated
Ethernet solution, and we continue to engage
with suppliers on the measurement of their
emissions and setting science-based
climatetargets.
In 2024, as our 12-month leadership programme
for senior leadership completed, we launched
the business manager programme for commercial
and operational leaders. We maintained a strong
colleague engagement score in 2024, and following
engagement with over 800 colleagues in
27countries, we developed our new corporate
values: We Value Our Customers, We Grow
Together, and We Win as a Team. Supporting
our people and communities will remain a key
priority in 2025.
Rotork Annual Report 2024 rotork.com36
Sustainability review continued Strategic report Corporate governance Financial statements
Priorities for the year ahead
• Preparing to comply with new
sustainability reporting regulations
including the EU’s Corporate Sustainability
Reporting Directive.
• Modelling our next scope 1 and 2
emissions reduction target.
• Implementing the machinery safety
auditprogramme.
• Conducting further environmental lifecycle
assessments ofproducts.
• Further engagement with suppliers on
emissions measurement.
• Launching our updated Supplier Code
ofConduct.
• Selecting a third global charity partner.
Materiality overview
Operating responsibly
1
Circular economy, including
Products in Use
2
Climate change
3
Culture, ethics andgovernance
4
Cyber and informationsecurity
5
Geopolitical risk
6
Safety, health andwellbeing
7
Supply chain, including
suppliers’GHG emissions
Enabling a sustainable future
8
Customer and
enduserrelationships
9
Energy security
10
Energy transition (net-zerofuture)
11
Environmental benefits ofproducts
12
Infrastructure, investment
andmodernisation
13
Innovation and new
productdevelopment
14
New end markets andapplications
Making a positive socialimpact
15
Brand and reputation
16
Diversity and inclusion
17
Safety benefits of products
18
Cost of living, socialcontribution
19
Stakeholder engagement
20
Talent attraction andretention
21
Training and development
Materiality matrix
Moderate High
Internal
Moderate High
External
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
17
20
21
16
18
19
Materiality overview
Rotork uses materiality assessments to monitor
changes in our stakeholders’ views on the
relative importance of major sustainability issues.
Effective management of material issues plays
animportant role in our management of risk and
inidentifying opportunities to support growth
and efficiency. Our previous materiality exercise
occurred in 2023, with results shown in
thegraphic.
CSRD and the transition to a double
materiality approach
In 2024, Rotork commissioned its first double
materiality assessment (DMA). This double
materiality approach is a requirement of the
EU’sCorporate Sustainability Reporting Directive
(CSRD), which requires consideration of both
sustainability issues that are financially material
to an organisation and issues where an
organisation has a material impact on the
environment or society. Due to complete in
early2025, the DMA has involved internal and
external stakeholder engagement including
senior leadership, customers, suppliers and
investors. This process will determine our
material impacts, risks and opportunities,
establishing which sustainability disclosures
arerequired to comply with CSRD.
rotork.com Rotork Annual Report 202437
Sustainability review continued Strategic report Corporate governance Financial statements
Operating
responsibly
Our mission
We aim to run safe, efficient
andsustainableoperations.
Our commitments
• We will aim to reduce our lost time
injury rate each year and strive for
a zero-harm workplace.
• We will embed social, ethical and
environmental considerations intoour
Global Supplier Excellence Programme.
• We will reduce carbon emissions generated
per £1m of revenue and work to implement
our net-zero roadmap.
In this section
• Safety, health and wellbeing
• Climate change and environment
• Circular economy and productresponsibility
• Supply chain management
• Culture, ethics and governance
SDGs we will progress
Rotork Annual Report 2024 rotork.com38
Sustainability review continued Strategic report Corporate governance Financial statements
Safety, health and wellbeing
Our vision for health and safety
is zero harm. This applies to
our broader agenda of health
and safety, environment and
product safety.
A safe environment for all
Rotork continues to focus on actions to maintain
and enhance the effectiveness of the safety
processes and procedures for every Rotork
working environment. Our objectives are to:
• Reduce the lost time and recordable incident
rates (LTIR and TRIR).
• Reduce our work-related ill health incidents
(included in TRIR calculation, but excludes
work-related stress cases).
• Have zero avoidable severe road incidents.
Health and safety performance
We monitor and report on key workplace safety
metrics in line with industry practice. Our
performance is measured using several KPIs
including total recordable incident rate (TRIR),
which follows the Occupational Safety and
Health Administration (OSHA) structure for
incident reporting and is a requirement of the
SASB framework. Using the OSHA structure
ensures there is consistency and integrity in
incident reporting.
We use TRIR to benchmark our performance
against other listed industrial peers. Compared
with peers' 2023 reporting, Rotork's 2024
performance was a leader amongst this group.
Operating responsibly continued
Given our improved performance in 2024, we
hope to celebrate continued success against this
metric in 2025.
Our TRIR performance in 2024 was 0.22 which is a
15% reduction from 2023’s performance of 0.26.
We also monitor:
• Lost time injury rate (LTIR) which measures
any injury that results in a day or more away
from work.
• Number of first aid injuries in the workplace.
• Near miss frequency rate (NMFR), a
requirement of the SASB framework for
safety reporting.
We maintained the LTIR performance achieved
in2023 with 2024’s LTIR remaining at 0.08.
OurNMFR reduced from 3.97 in 2023 to 3.78
in2024, a 5% reduction on the previous year.
Ourfirst aid injuries reduced by 32% from 88
in2023 to 60 in 2024. We are pleased to report
that there were no workplace fatalities in 2024.
A leading approach to
preventingincidents
We complete regular trend analysis on both
leading and lagging indicators to identify key
focus areas. Once identified, we use safety
campaigns to increase awareness and improve
control measures for the potential issue. The
campaigns include safety communications,
corrective actions including engineering control,
and tools to help reduce the risk to injury in
theworkplace. In 2024, when trend analysis
highlighted an improvement opportunity in
standardising personal protective equipment (PPE),
we completed a standardised PPE campaign.
Our health and safety risk identification and
assessment approach is collaborative. Aligned
with our Global Safety Standards, our assessment
process informs prevention and mitigation
strategies to reduce risks in our operational
environments. We also encourage employee
engagement in hazard identification through
ourSafety Spot system. It proactively drives
awareness and continuous improvement by
capturing hazards, minor near miss events and
behavioural requirements before they result in
an incident.
Another preventative tool is completing safety
Gemba walks at our facilities. Gemba is a ‘lean’
term for ‘the place where the value is created’.
From a safety perspective, this means going to
where the work takes place – on the factory
floor – and testing how our safety requirements
are applied in practice. In 2024, we completed
2,597 Gemba safety walks across all Rotork
facilities, a 47% increase from 2023.
Global annual audit programme
Having established our HSE audit programme
in2023, we more than doubled the number of
audits completed globally, which included large
factories, sales and service centres in 2024. The
majority of the minor recommendations which
were highlighted in the external audit of the
programme have been implemented during
2024, with the remaining improvements planned
for 2025. 15 audits were completed in 2024
using the new audit programme, with another
15 planned in 2025.
Employee wellbeing
Our focus on the wellbeing and mental health
ofour employees continued in 2024. Our 2024
activities are discussed further on page 59.
rotork.com Rotork Annual Report 202439
Sustainability review continued Strategic report Corporate governance Financial statements
Operating responsibly continued
Safety, health and
wellbeingcontinued
2024 performance highlights
Total recordable incident rate (TRIR)
0.22
Decrease in TRIR from 2023 to 2024
15%
Lost time injury rate
0.08
24 0.22
24 0.08
23 0.26
23 0.08
22 0.53
22 0.13
21 0.56
21 0.20
20 0.24
19 0.25
Total recordable incident rate
(TRIR)
Lost time injury rate
(LTIR)
Rotork Annual Report 2024 rotork.com40
Sustainability review continued Strategic report Corporate governance Financial statements
Priorities for 2025
• Enhance machinery safety standards through the release of a comprehensive machinery safety
audit programme.
• Development of a standardised HSE induction process for employees, contractors and visitors.
• Identify digitisation opportunities forHSEmanagement processes.
Operating responsibly continued
Climate change and environment
We remain committed to
playing our partin tackling
climate change, and weare
making progress against our
science-based climate targets.
Our approach to the environment
Environmental considerations are an integral
partof our strategy and the way we operate.
Efficient use of natural resources is a commercial
imperative, as well as an environmental one.
Weset high standards of environmental conduct
for our business and supply chain. We are
committed to reducing our emissions, energy
and water usage, and waste to landfill.
We have set science-based targets to underpin
our ambition, covering scopes 1, 2 and 3. We are
targeting net-zero by 2035 for scopes 1 and 2
and net-zero by 2045 across scopes 1, 2 and 3.
Energy and emissions performance
Overview
Scope 1 and 2 (market-based) emissions were
reduced by 7% year-on-year and are now 37%
below our 2020 baseline. Reductions reflected
energy efficiency projects, renewable electricity
contracts and the installation of an electric
heating system at our Manchester (UK) facility,
partly offset by increased scope 1 emissions in
China following the opening of the new facility.
We developed an environmental reporting tool
in 2024 to improve the efficiency of our monthly
data collection process. Our 2024 scope 1 and 2
GHG emissions and water withdrawal were
independently assured by DNV Business
Assurance Services UK Ltd (DNV).
Performance against targets
We have a science-based target to reduce
ourscope 1 and 2 market-based emissions by
42%by 2030 against a 2020 baseline, with
2024 emissions 37% below baseline. We also
measure our progress in this area by tracking
ourlocation-based carbon intensity per £1m
revenue. In 2024, our financial intensity figure
reduced by 4% year-on-year.
Our scope 1 and 2 emissions reductions were
achieved through energy efficiency initiatives,
increased use of on-site solar and the delivery
ofan electric heating project. Our renewable
electricity consumption increased to 56% in
2024 (44% in 2023).
Emissions from the use of sold products were
relatively flat, with some variance resulting from
differing ratios of specific products sold in 2024
vs 2023.
Science-based targets
2030
target 2024 2023
Scope 1 and 2
reduction vs 2020
42% 37% 32%
Scope 3 (use of sold
products) reduction
vs 2020
25% 12% 14%
2027
target 2024
Scope 3 (purchased
goods and services)
proportion of suppliers
with science-based targets
25% Engagement
ongoing
See p. 47
Our greenhouse gas emissions and associated energy use
Scope 1 and 2 greenhouse gas (GHG) (market-based) emissions were 7% lower year-on-year. The Group
has no other material GHG emissions sources to report (such as methane, nitrous oxide, sulphur
hexafluoride, HFCs or PFCs).
In 2024, two scope 3 emissions categories decreased due to methodological changes. Ourupstream
transportation and distribution emissions reduced in 2024 as the emissions data was primarily
sourced from our suppliers. This confirmed that our internal estimates in previous years were
conservative. Inaddition, our spend-based calculation of purchased goods and services emissions
yielded lower emissions due to changes to emissions factors and improved spend categorisation.
Energy use
Unit of measure 2024 2023 2022
Electricity kWh 12,319,148 11,624,714 12,255,270
Gas m
3
956,914 866,307 962,983
Other fuels and steam
1
GJ 20,895 21,726 5,840
Total energy consumption GJ 101,588 96,477 88,241
– UK energy consumption GJ 22,273 24,607 27,870
GHG emissions
Scope 1 and 2 GHG emissions
Unit of measure 2024 2023 2022
Scope 1 Metric tonnes CO
2
e 3,533 3,197 3,132
Scope 2 location-based Metric tonnes CO
2
e 3,605 3,953 4,122
Scope 2 market-based Metric tonnes CO
2
e 2,344 3,113 3,920
Total scope 1 and 2 (LB) Metric tonnes CO
2
e 7,138 7,150 7,254
– UK emissions (LB) Metric tonnes CO
2
e 1,247 1,380 1,589
Total scope 1 and 2 (MB) Metric tonnes CO
2
e 5,877 6,310 7,052
– UK emissions (MB) Metric tonnes CO
2
e 724 854 1,064
Emissions intensity (LB) tCO
2
e per £1m revenue 9.5 9.9 11.3
1 Diesel and petrol are included in this table from 2023, which represents the increase versus 2022.
rotork.com Rotork Annual Report 202441
Sustainability review continued Strategic report Corporate governance Financial statements
Operating responsibly continued
Climate change and environment continued
Energy and emissions performance continued
Our greenhouse gas emissions and associated energy use continued
GHG emissions continued
GHG accounting methodology
For Streamlined Energy and Carbon Reporting (SECR),
we report on the emission sources required under the
Companies Act 2006 (Strategic Report and Directors’
Reports) Regulations 2013 and theCompanies
(Directors’ Report) and Limited Liability Partnerships
(Energy and Carbon Report) Regulations 2018 (‘the
2018 Regulations’). For scope 1–3 emissions, we have
followed the principles of the World Resources
Institute Greenhouse Gas (GHG) Protocol, which
comprises the coverage ofcarbon dioxide, methane,
nitrous oxide, hydrofluorocarbons, perfluorocarbons
and sulphur hexafluoride. Thelocation-based
method calculates emissions using the average
emission intensity oflocal electricity grids serving
Rotork’s facilities. Themarket-based method captures
the impactof Rotork’s contractual arrangements
toprocure renewable or low-carbon energy
andenergy certificates.
The UK Government GHG Conversion Factors
forCompany Reporting have been applied, where
relevant, to calculate emissions across allscopes.
We have used additional regional emissions factors
for non-UK sites, such as those from the International
Energy Agency (IEA), the Association of Issuing
Bodies (AIB) European Residual Mixes, the US
Environmental Protection Agency and Green-e, to
calculate our scope 1 and 2 market-based footprint.
We continue to review our reporting in light of any
changes in business structure, calculation methodology
and the accuracy or availability of data.
Rotork’s scope 1 emissions come from the use of:
natural gas, diesel (on-site and off-site), liquified
petroleum gas, fuel oil, petrol and refrigerants.
Rotork’s scope 2 emissions come from the purchase
of electricity and steam. We track theconsumption
of energy in our facilities each month and, in line
with best practice, report bothour market-based
and location-based GHG emissions on a carbon
dioxide-equivalent basis.
2020 is the baseline against which we set our targets.
Scope 1 and scope 2 (location and market-based)
emissions in 2024 have been assured by DNV.
Annual energy consumption (kWh) is obtained from
both actual sources (invoices and meter readings) and
estimated sources (some office energy rates included
in monthly charge). Where conversion of units to
kWhis required, the latest conversion factors from
theUKGovernment are used. In line with the SECR
requirement to disclose the proportion of carbon
emissions andenergy associated with the United
Kingdom, we estimate that 17% of emissions and
21% ofenergy usage relates to our UK operations.
Scope 3 purchased goods and services and capital
goods were estimated based on mapping spend
data against the US EPA’s Supply Chain Greenhouse
Gas Emission Factors v1.3.
Fuel and energy-related scope 3 emissions were
calculated by applying WTT and T&D emission
factors to Rotork’s energy consumption data. Upon
review, a nominal amount of emissions previously
categorised as 'downstream leased assets' is now
classified as 'out of scope'. This category has been
removed and the 2023 total was adjusted accordingly.
Upstream transportation and distribution was
calculated using emissions data provided by suppliers.
A small proportion of freight activity – where supplier
calculations were not available – was calculated by
extrapolating the reported data based on spend.
Scope 3 waste generation in operations has been
calculated byapplying UK emission factors to waste
data collected by our facilities management team.
Business travel emissions have been calculated
using UK conversion factors, applied to distance
and nights away data for hotels, air, rail and road
transport. Employee commuting emissions were
estimated using full-time equivalents (FTEs), the
national commuting survey and UK emission factors.
Use of sold products has been calculated by applying
emissions factors to the average operational energy
usage of products over their lifetime. These emissions
factors are sourced from DEFRA, US EPA, NGAF,
IEAand carbonfootprint.com. This figure does
notinclude the well-to-tank or transportation and
distribution emissions related to product energy use.
End of life treatment has been calculated using UK
emissions factors applied to the number of products
sold by the business during the reporting period.
Emissions intensity (per £1m revenue) is calculated
by dividing location-based scope 1 and 2 emissions
by total revenue.
Scope 3 emissions
Category Unit of measure 2024 2023 2022
Purchased goods and services Metric tonnes CO
2
e 70,861 85,386 93,879
Capital goods Metric tonnes CO
2
e 181 600 271
Fuel and energy-related activities Metric tonnes CO
2
e 1,684 1,687 1,958
Upstream transportation
anddistribution Metric tonnes CO
2
e 7,899 28,881 24,108
Waste generation in operations Metric tonnes CO
2
e 196 209 205
Business travel Metric tonnes CO
2
e 4,857 5,707 4,106
Employee commuting Metric tonnes CO
2
e 962 1,870 1,894
Use of sold products Metric tonnes CO
2
e 253,939 248,465 285,588
End of life treatment of products Metric tonnes CO
2
e 1,374 1,045 638
Total scope 3 GHG emissions Metric tonnes CO
2
e 341,953 373,850 412,747
Rotork Annual Report 2024 rotork.com42
Sustainability review continued Strategic report Corporate governance Financial statements
Our commitments
Scope 1 and 2 tCO
2
e absolute reduction: we will continue to achieve significant progress
against ouremissions reduction target. In 2024, we launched a smart-metering trial which will
assess the feasibility of a rollout across the largest assembly sites within the business. Capital
projects, energy efficient practices and increased use of renewable energy will continue to reduce
our energy consumption and emissions. Investigating opportunities in paint plant optimisation,
heat recovery and electrification of heating will inform projects in future years.
Scope 3 tCO
2
e absolute reduction: we are committed to reducing the emissions resulting from
ouruse of sold products and our purchased goods and services. As these are the emissions of our
customers and suppliers, achieving reductions will involve both product design and engagement
with these stakeholders.
Operating responsibly continued
Climate change and
environmentcontinued
2024 performance highlights
Headline targets
37%
decrease in total scope 1 and scope 2 (market-based) emissions
versus 2020 baseline
9.5
tCO
2
e per £1m revenue (location-based)
The site's energy management is aided by the
facility's building management system.
Our use of renewable electricity continued to
increase in 2024, with 56% of power consumption
from renewable sources. In addition to the
solarpanels at our Changshu site, our sites in
Milwaukee and Houston (USA) transitioned to
purchasing renewable power. In 2025, we expect
to install solar panels at our Lucca (Italy) site.
Lastly, at our Manchester (UK) site, the end-of-life
gas heating system was replaced with an electric
alternative, removing the site’s primary source
ofscope 1 emissions.
Progress in 2024
During 2024, energy efficiency initiatives
continued to deliver savings. In the UK, several
sites completed equipment upgrades, controls
improvements and LED lighting installation,
achieving 95MWh of savings across the year.
Our site in Bergamo (Italy) undertook heating
and lighting optimisation projects, and our sites
in India optimised air conditioning systems and
trialled the use of variable flow drives (VFD).
Our new factory in Changshu (China) has several
energy and emissions-saving features. This LEED
Gold rated facility has nearly 1.5 MW of rooftop
solar capacity, energy-efficient painting facilities
and VFD-controlled air compressors.
rotork.com Rotork Annual Report 202443
Sustainability review continued Strategic report Corporate governance Financial statements
Reducing emissions at Manchester (UK)
Our site in Manchester has delivered a series
of emissions-saving projects over the past
three years. Solar panels were installed in
2022. Several energy-saving initiatives were
delivered over 2023-24, including LED lighting
and equipment upgrades. In 2024, the
existing boiler reached its end of life and was
replaced with a fully electric heating system.
The new system is expected to save up to
90tonnes of CO
2
e per year.
Prioritising environmental
performance at new facility (China)
Our new Changshu facility opened in 2024.
Thisfacility is rated LEED Gold and features
over 2,500 rooftop solar panels, modern
building fabric insulation, double-glazed
windows and EV charging facilities.
Operating responsibly continued
Climate change and
environmentcontinued
Water management and use
Water consumption across Rotork’s own sites
isrelatively small, predominantly comprised of
domestic and sanitary requirements. Some of
our usage is attributed to operational activities
such as paint processes, cleaning of products
and pressure testing of Rotork’s products before
shipping to our customers.
Our water withdrawal increased by 9% in
2024in comparison to 2023, largely the result
ofanunderground leak which was successfully
repaired during the period. Water management
opportunities were assessed as part of 10 resource
efficiency surveys which were undertaken in
2024. In 2025, each of the10 sites will establish
site-specific water management plans.
We have made a significant performance
improvement compared to pre-COVID years
with2024 usage down 7% against 2019.
2024 2023 2022
Total water
withdrawal
(in cubic metres) 36,130 33,269 34,045
Water stress and preservation
We completed our annual water stress risk
assessment in Q12024, to identify locations
which should be prioritised for water-use
reduction projects. We also examined risks
associated with water scarcity, flooding, water
quality and ecosystem services and determined
that only a limited number of sites are exposed
to water risks. Mitigation plans are also in
placeto protect our people, operations and
theenvironment.
Our role in water preservation
Demand for water infrastructure is strong across
both developing and developed markets. Leak
detection and water quality are a major focus of
the water industry and shortages are driving the
development of smart grids. The water network
infrastructure also requires modernisation in
many countries. Increasing regulations relating to
water quality, water reuse and sludge treatment
are driving water-related capital expenditure
across industry. Water scarcity is resulting in
greater need for recycling and desalination,
driving investment in these processes. Rising
water levels are necessitating flood defence
investment. There areapplications for Rotork’s
products in all these processes.
Waste management
We encourage all our sites to minimise the
volume of waste they produce and promote
asustainable method of waste disposal
wherepossible.
In 2024, total waste generated increased by
2%across our operations and our recycling rate
increased to 73% (72% in 2023). Our Lucca
(Italy) site team reduced hazardous waste by
optimising the cycles of the paint plant washing
tunnel, which reduced the amount of paint
waste by c.30%. In the UK, Rotork selected
anew waste collection and disposal supplier,
which will prioritise diverting waste-from-landfill
across our UK sites. Our waste performance
in2025 will benefit from the transition to this
supplier and our continued segregation of
on-sitewaste streams.
Unit of measure
inmetrictonnes 2024 2023 2022
Total waste 2,399 2,363 2,068
Waste recycled 1,744 1,712 1,428
Sent to landfill 337 396 401
Of which hazardous 23 46 56
Sent to energy recovery 318 256 239
Rotork Annual Report 2024 rotork.com44
Sustainability review continued Strategic report Corporate governance Financial statements
Circular economy and
productresponsibility
We are committed to enabling a sustainable
future, meeting our science-based emissions
reduction targets and contributing to a
low-carbon economy through our intelligent
products and services.
Materials use
We generally operate an assembly-only philosophy
across the Group, meaning that most of the
manufacturing processes to produce our products
are undertaken by our suppliers. The main
components of our products – aluminium, steel
and copper – are highly recycled and recyclable.
Components vary by product family, depending
on how they are operated – electrically,
pneumatically, or hydraulically. The weight of
material inputs also varies by product across our
portfolio. Our IQ3 actuator, one of our flagship
products, provides an example of the typical
materials we use in our electric actuator product
range. These are: metals, glass, electrical and
electronic equipment, batteries, plastics, oil/
grease and rubber.
We expect suppliers to apply the principles of
our Supplier Code of Conduct. This Code covers
our expectations of social, ethical and environmental
conduct, published on our website and included
in our standard terms. The Supplier Code of
Conduct requirements include an expectation
that suppliers calculate and publish emissions
associated with their manufacturing activities.
Our suppliers are required to certify their
adherence with product compliance regulations,
and we seek compliance from suppliers globally.
Product safety
Rotork products play an important role
insupporting customers’ safety objectives.
AllRotork products are compliant with
internationally recognised safety standards.
Many of our products are externally certified
tointernationally recognised safety standards,
approximately 50% are externally certified
foruse in hazardous locations. This includes
products that are compliant with functional
safety standards for applications such as safe
plant operation and emergency shutdown.
Product stewardship
Environmental criteria are considered as an
integral part of our product development
process. We aim to reduce the impact of our
products through the consideration of key
sustainability performance features: (i) standby
energy, (ii) in-use energy, (iii) recycled content
inproduct and packaging, (iv) recyclability of
product and packaging, (v) material reduction
(incorporating paint and adhesive reduction),
(vi)disassembly, and (vii) recovery.
In 2024, Rotork expanded its ability to undertake
product footprints. In 2023, we selected and
began to roll out lifecycle assessment (LCA)
software. In 2024, we undertook four initial
LCAs, with further studiesplanned for 2025.
This work will enableus to identify opportunities
to reduce environmental impacts and to deliver
on our sustainability commitments.
Operating responsibly continued
rotork.com Rotork Annual Report 202445
Sustainability review continued Strategic report Corporate governance Financial statements
Standby energy
reduction
In-use energy
reduction
• Recycled content
• Recyclability
2030 2045
• Material reduction
• Disassembly
• Recovery
To achieve our 2030 target of reducing
emissions from product use by 25%,
we have introduced these energy
requirements for all future products
To achieve net-zero for scope 3
emissions by 2045, we are embedding
these additional sustainable design
principles for all future products
Enabling a Sustainable Future
Helping customers better their own environmental performance,
whilst at the same time working to improve our own
Operating responsibly continued
Circular economy and product
responsibility continued
Product stewardship continued
We are particularly focused on the environmental
performance of products in their use phase, where
we have the greatest opportunity to support
apositive environmental impact. We calculate
emissions associated with the use of sold products
during the year, as part of the calculation of our
scope 3 inventory on page 42. We have set a
science-based target to reduce those emissions
by 25% by 2030 and arebuilding this into our
product development roadmaps.
Reliability Services
Rotork’s Reliability Services offering is a suite
ofservices provided by Rotork Service to help
customers manage their assets efficiently. It is
afull lifecycle asset programme that enables
customers’ critical assets to operate at peak
performance level, ensuring wider site uptime
and productivity, improved safety and reduced
environmental impacts. Reliability Services
offersa service contract model that supports
customers towards better maintained assets
delivering greater process uptime.
Intelligent Asset Management is a cloud-based
platform that sits within the Connected Services
part of Rotork’s service business. The analytics
platform collects information from the data logs
held within intelligent electric actuators, offering
anomaly detection and accurate asset health
reporting that allow a user to understand the
condition of their assets. This conditional insight
supports both predictive and preventative
maintenance strategies.
Service and maintenance programmes can be
designed several ways. One way of approaching
maintenance is to service assets on a regular
schedule, regardless of age or usage. However,
the age of a device is not the best predictor of
the likelihood of actuator or valve failure; the
precise condition of an asset is much more
accurate. Some actuators are not frequently
operated, instead providing testing or
emergency shutdown (ESD) capabilities.
Conversely, some offer constant modulating
control in harsh environments.
Specific condition monitoring, using data from
each actuator in the field, provides information
about the actual operational characteristics of
each asset. Data can be collected, analysed and
then used to optimise the delivery of maintenance.
This proactive analysis of data is key. It enables
earlier failure prediction, reduced failure risk
andcost, and a maintenance programme that is
scheduled to match risk levels. Longevity of data
capture is also important; the longer an asset
ismonitored for, the richer the data it provides
becomes. By keeping a site running at an
optimum level, customers are able to make the
most efficient use of environmental resources.
Responsible disposal at end of life
Our product manuals provide end-user advice
ondisposal when an asset reaches the end of
life stage, in accordance with environmental
standards. We provide specific guidance on the
disposal of batteries, electrical and electronic
equipment, glass, metals, plastics, oil/grease
andrubber. The majority of these are readily
recyclable, with others recyclable by specialists.
Our manuals also include detailed health
andsafety advice for the installation and
operation of products. We publish manuals
onour website in numerous languages.
See:www.rotork.com.
Due to their nature, our products typically have
along lifespan and are replaced infrequently.
Generally customers take responsibility for
disposal at end of life.
Rotork Annual Report 2024 rotork.com46
Sustainability review continued Strategic report Corporate governance Financial statements
Integrated Ethernet and
circulardesign
One of Rotork’s achievements in 2024
wasthe delivery of our Integrated Ethernet
solution. As part of incorporating sustainability
in product design, the terminal board’s
enclosure is 85% recycled nylon. The embodied
emissions of recycled nylon are 68% lower
than that of virgin nylon.
Operating responsibly continued
Supply chain management
We expect our suppliers to maintain high
standards of ethical conduct – aligned with our
environmental and social aims – to maximise
value created for us, those working in our supply
chain, our communities and the environment.
Rotork has a long-standing reputation for
integrity, fair dealing, ethical behaviour and
paying on time. As part of our Growth+
strategy, we are working to rationalise our
supply base and concentrate our spend with
strategic supply partners. We spent over £360m
with suppliers in 2024. Approximately 75%
ofour spend in 2024 was with 260 suppliers
(management estimate). Our spend on product
assembly and supply can be grouped into four
main categories, as shown by the pie chart on
the next page.
We have comprehensive quality assurance
procedures for suppliers. These include supplier
approval and component qualification processes,
supplemented by supplier visits and a vendor
rating system, to measure their performance.
Our approach
All suppliers are expected to comply with our
Supplier Code of Conduct. This describes expected
standards, including promoting equal opportunities,
human rights, freedom of association, labour
rights, environmental protection and our
zero-tolerance approach to bribery and corruption.
It applies to all suppliers globally and their own
supply chains. We will take appropriate action
against any supplier that fails to adhere to our
Code, which can include the termination of
theircontract.
We undertake due diligence on prospective
suppliers and assessments of existing suppliers
to manage modern slavery risks in our supply
chain. We engage an independent intelligence
provider to help analyse our supply base and
follow up with audits when necessary.
During 2024, we established a cost engineering
team and invested in software to measure and
optimise component design which can reduce
lifecycle GHG emissions. This software is now
integrated into our New Product Development
process to reduce emissions and optimise cost from
the design stage. The 'Design for Manufacture'
methodology identifies component design and
manufacturing process changes that enable
reduced manufacturing costs allowing suppliers
to maintain a sustainable margin and deliver
competitive pricing.
Our Supplier Code of Conduct
Our Supplier Code of Conduct sets out our
expectations of suppliers on environmental,
social and governance topics. This includes an
express right of audit, incorporating a requirement
to make supplier premises and personnel accessible
to Rotork. TheCode is applicable to all suppliers
and thirdparties globally.
Our Code includes an explicit requirement for
suppliers to pursue efforts to publicly report
greenhouse gas emissions. In addition, it
expressly sets out our requirement for suppliers
to pay wages and benefits that meet or exceed
national minimum requirements and to adhere
to working time regulations; to comply with
applicable laws and regulations relating to
faircompetition, money-laundering and the
non-facilitation of tax evasion; and to adhere
toboth the spirit and the letter of our Conflict
Minerals Policy. The Code also encourages
suppliers to align with internationally recognised
social standards, such as SA8000. The Code
isembedded in all new supplier contracts.
We have a defined, Group-wide process to
validate that suppliers are meeting the requirements
of our Supplier Code of Conduct and upholding
Rotork’s commitments to social, environmental
and ethical standards in the supply chain. The
process outlines our approach to assessment
ofsocial, environmental and ethical risks, which
includes supplier self-assessment, enhanced
surveys for suppliers scored as medium or
highrisk, and site audits for medium- and
high-risk suppliers.
Our risk scores are developed through a
combination of factors, including scores relating
to their country of operation, with country-based
index scores for human freedom, child labour,
corruption and health and safety, drawing on
internationally-recognised indices provided by
organisations such as the International Labour
Organization. The process also documents our
escalation procedures for any concerns identified,
with significant concerns to be reported to the
Legal Department.
Supply chain emissions
One of our three science-based climate targets
isa supplier engagement target which ultimately
aims to reduce the emissions associated with our
purchased goods and services. We are committed
to engaging with suppliers on the topic of emissions
measurement and data sharing, with a target
that 25% of our suppliers (by estimated emissions)
will set science-based targets by 2027. In 2023,
our procurement team engaged 84 suppliers
through four interactive webinars and targeted
one-to-one workshops which introduced the
topics of emissions measurement, reduction
andtarget setting. In 2024, we added the topic
of supplier emissions to the strategic business
reviews with suppliers, began to review
approaches for gathering supplier emissions
data, and undertook an assurance readiness
review of our current calculation approach.
Risk management
As an international group with a predominantly
out-sourced manufacturing model, our supply
chain is key to us delivering our purpose of
‘keeping the world flowing for future generations’.
Supply chain disruption is identified as a principal
risk to the business. As a result, we monitor our
supply chain very closely. Disruption could arise
for a number of reasons, for example as a result
of a tooling failure at a key supplier, a transportation
issue, or a severe weather event impacting a
keysupplier.
We identify critical suppliers and components
through our formal risk assessment process
andfocus our risk management efforts on the
suppliers that present the greatest risk to our
business. Criticality is determined via a number
of criteria, including business dependency, criticality
of the commodity supplied and financial
considerations, such as spend and contribution
to revenue. In 2023, the risk framework we use
for the assessment of supplier risk was expanded
to include a wider range of risk domains and
elements. During 2024 the framework was applied
to the top 50 suppliers across the Group and
was developed to better define our definitions
of risk and resilience, material risk domains and
risk elements, and levels of diligence that will be
applied to different types of suppliers. The risks
are captured on a centralised scorecard and
reviewed quarterly to identify if any specific actions
are required. The framework also outlines several
workstreams to improve resilience, including
single-source risk mitigation strategies, sub-tier
resilience and systematic scenario planning
andstress testing processes. During 2025,
wewill continue to expand the application
ofthe framework and implement the
resilienceworkstreams.
rotork.com Rotork Annual Report 202447
Sustainability review continued Strategic report Corporate governance Financial statements
Operating responsibly continued
Supply chain
managementcontinued
Risk management continued
Our approach to supplier sustainability focuses
on (i) key Group suppliers and (ii) highest risk
suppliers. We use a third-party software platform to
support management of supplier self-assessments
and ensure their timely completion. The platform
also includes additional ESG and compliance
modules that we ask suppliers to complete on
specific topics, such as greenhouse gas emissions
reporting. The software automates the collection
and collation of suppliers’ responses to support
our effective oversight and management of
ESGissues in the supply chain. During 2024 we
appointed additional resources to increase the
number of suppliers onboarded on the platform.
As a result we have doubled the number of
targeted suppliers, and tripled the number of
suppliers which registered and reported data
toRotork. Wehave implemented a systematic
approach to following up with non-responsive
suppliers and red flags. During 2024 we adopted
a dedicated software platform for supplier
cybersecurity checks. The service is more
targeted and has amore specific question set.
The results are reviewed by a third party which
provide recommendations to our procurement
and cybersecurity teams.
Our supplier assessment and onboarding process
ensures that potential suppliers that do not meet
the minimum standards criteria are eliminated
early from any formal tendering or engagement
process. We also provide feedback to any
companies we have assessed, even if they are
unsuccessful, to provide them with potentially
valuable development opportunities. Our Group
vendor approval questionnaire includes questions
aligned to our updated Supplier Code of Conduct.
It was updated in 2024 to improve the question
set and incorporate new requirements.
We have incorporated sustainability related
questions in our routine on-site supplier
assessments and we are continuing to
ensuresustainability elements are included
insite-level processes.
Product assembly and supply spend(2024)
Conflict minerals
Rotork does not purchase raw materials from,
orwork directly with, smelters or refineries
– wepurchase components several tiers removed
from smelters in the value chain. Our approach
istherefore based on engaging with our suppliers
to identify, manage and correct any risks. We
report transparently on our engagement and risk
management procedures to support stakeholders’
understanding of our approach.
Our Conflict Minerals Policy sets out our
commitment to not use tantalum, tin, tungsten
and gold (3TG) that directly or indirectly finances,
or benefits, armed groups in the Democratic
Republic of the Congo or adjoining countries.
The scope of the Conflict Minerals Policy also
includes other Conflict Affected and High
RiskAreas (CAHRAs). Management responsibility
forthe policy lies with our CEO. The policy is
published on our website at: www.rotork.com.
We exercise due diligence based on the ‘Responsible
Minerals Initiative’ (RMI) guidance, by mapping our
supply chain using its reporting templates and
following up any concerns raised via a corrective
action management process. Group-wide
procedures define our risk management process
and support the commitments made in our Conflict
Minerals Policy. We describe in-scope commodities;
the supplier communications approach (including
the requirement for an annual supply chain conflict
minerals survey, based on the template provided
by the RMI); and the management
approach in
the event of supplier non-conformance.
Our Group-wide conflict minerals management
procedure also describes our definition of
high-risk smelters, to guide colleagues in
interpreting the results of the supplier conflict
minerals survey, which collects information on
the smelters used by our suppliers and minerals’
country of origin.
We have a dedicated conflict minerals section
onour employee intranet to help drive awareness
of conflict minerals, the problems associated
with them, how to identify the risk of these in
the supply chain and how to respond to requests
forRotork’s conflict minerals declaration.
We also educate suppliers of commodities that
could contain 3TG about conflict minerals risks
when we request their responses to our annual
survey. If we identify and confirm that a supplier
is using a high-risk smelter, our process is to
engage with our supplier to request that they
change their source, and ultimately we may
re-source to a supplier that does not use
high-risk smelters.
Modern slavery awareness training
Our training programme aims to raise employee
awareness of modern slavery and human
trafficking risks in our business and supply chain.
It includes mandatory human rights eLearning
for our global online population, designed to
build knowledge of, and capability to identify
and manage, modern slavery risks.
See page 50 for further information about our
approach to mitigating modern slavery and human
rights risks in our business and supply chain.
Mechanical components 60%
Electronic and electrical components 14%
Other indirect categories 17%
Transportation and logistics 6%
Packaging 3%
Rotork Annual Report 2024 rotork.com48
Sustainability review continued Strategic report Corporate governance Financial statements
Priorities for 2025
• Develop our approach for requesting and
tracking supplier emissions data.
• Engage with engineering to embed the
Design for Manufacture and Lifecycle
Assessment processes.
Operating responsibly continued
Culture, ethics and governance
We strive to act ethically and in line with our
values in the way that we do business. This is
rooted in our culture and reflected in our Code
of Conduct.
Our Code of Conduct
Our Code of Conduct sets out the standards
ofbehaviour that Rotork expects from anyone
acting on Rotork’s behalf, including all permanent
employees, temporary workers and contractors.
It is designed to underpin and shape our people’s
behaviour, forming part of our desired culture,
and serving as an important reference point as
they carry out their day-to-day responsibilities
and represent our business. We expect everyone
to follow the Code and act with integrity at
alltimes.
We updated our Code of Conduct during 2024.
Key updates included new topics, the addition
ofpractical Q&A scenarios using examples that
are relevant and directly applicable to Rotork’s
business activities, and a new design to give the
Code a fresh look and feel.
The Board reviewed the updated Code of
Conduct as part of its oversight of culture
andgovernance within the organisation.
Following this our CEO, Kiet, launched the
refreshed Code in November 2024 and we
further communicated its launch via a news
article on our all-employee global intranet site.
New mandatory eLearning was developed
(which was launched in January 2025), to
improve employee awareness and understanding
of the Code and its supporting policies. Similar
in-person training has been developed on the
Code of Conduct for non-digital employees.
Boththe Code of Conduct and the associated
eLearning are available in 11 languages.
Our Code of Conduct is published on our
website at www.rotork.com/en/sustainability/
esg-reports-and-policies/rotork-code-of-conduct.
We have a number of policies that sit beneath
and support our Code of Conduct, covering
Anti-Bribery and Corruption, Speak-Up,
Confidentiality, Conflicts of Interest, Fair
Competition, Gifts and Hospitality, Data
Protection, Modern Slavery and Trade Sanctions.
These policies apply to our operations globally,
including to subsidiary companies and
jointventures.
We continue to embed our values and Code
ofConduct across our organisation worldwide.
Our Supplier Code of Conduct sets out our
coreexpectations in terms of ethical values and
behaviours of our suppliers and our suppliers’
own supply chains. Our Supplier Code of
Conduct is published on our website at
www.rotork.com/en/sustainability/esg-reports-
and-policies/supplier-code-of-conduct-policy.
Ethics and compliance training
Employee training and awareness is one of the
core elements of our Ethics and Compliance
programme. New joiners are introduced to our
values and expected behaviours during formal
induction sessions.
We have an eLearning platform that enables a
range of ethics and compliance training to be
provided to employees and provides full auditability.
This includes mandatory training on a variety of
topics, which is available in a number of languages.
As well as foundation Code of Conduct modules
and Speak Up training that re-emphasises both
the importance of speaking up if wrongdoing is
suspected and Rotork’s no-retaliation policy, our
new joiners training programme includes courses
on anti-bribery and corruption, conflicts of
interest, fair competition, modern slavery,
giftsand hospitality and data protection.
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Operating responsibly continued
Culture, ethics and
governancecontinued
Ethics and compliance training continued
As part of our commitment to good governance,
our mandatory compliance certification, launched
each year in January, asks colleagues to complete
a statement confirming compliance with our
Code of Conduct and associated policies, the
completion of all mandatory training, and any
actual or potential conflicts of interest. Any
conflicts of interest declared are reviewed,
assessed and addressed where necessary. As part
of its oversight of culture within the organisation,
the Board received an update onthe completion
of these mandatory certifications by our employees.
Human rights and modern slavery
Rotork continually looks for ways to support the
promotion of human rights within our operations
and our sphere of influence. We obey the laws,
rules and regulations of every country in which
we operate. We respect internationally-recognised
human rights, as set out in the United Nations
International Bill of Human Rights and the
International Labour Organization’s Declaration
on Fundamental Principles and Rights at Work.
These cover freedom of association, the
abolition of forced labour, equality and the
elimination of child labour.
This might include: placing appropriate
contractual obligations on a supplier; working
together with a supplier on a corrective action
plan; or ceasing to work with a supplier altogether.
Further information about the steps we take to
address modern slavery risk is set out in our 2024
Modern Slavery Statement at www.rotork.com/
en/investors/modern-slavery-statement.
Anti-bribery and corruption
Rotork has a zero-tolerance policy towards
bribery and corruption worldwide, irrespective
ofcountry or business culture. Both our Code of
Conduct and Anti-Bribery and Corruption Policy
prohibit the offering, paying or solicitation of
bribes in any form. Additionally, our Gifts and
Hospitality Policy provides guidance on the rules
relating to the giving and receiving of gifts and
hospitality. Requests to offer or accept gifts or
hospitality (over a de minimis threshold) are
recorded in our automated register, together
with whether approval has been granted.
Third-party risks
We have procedures in place to manage
third-party risks (including bribery risk) across
our operations, through each of the selection,
appointment and monitoring stages. Following
arisk-based review of our channel partners
(agents, distributors and resellers) population
undertaken in 2023, during 2024 the findings
from the review were used to enhance our
existing programme and will continue in 2025.
Our Modern Slavery Policy includes a range of
key performance indicators (KPIs), to monitor the
risk-based actions that we take to mitigate risk
and to assess the effectiveness of our control
measures. We review the KPIs annually to ensure
they remain relevant and appropriate.
The policy is supported by training that aims to
raise employee awareness of modern slavery
andhuman trafficking risks in our business and
supply chain. All employees who have access to
the eLearning platform receive our mandatory
modern slavery course. The course content
includes what modern slavery is, its forms and
key indicators, how to identify and respond to
modern slavery risks, key risk areas, and how
toreport concerns. The course also provides
targeted content for members of the Rotork
Management Board and our Procurement and
Human Resources functions. Our foundation
Code of Conduct eLearning and training for
ournon-digital employees also include a
moduleon human rights and modern slavery.
Our Supplier Code of Conduct sets out our
minimum expectations regarding human and
labour rights, among other requirements.
Weassess potential slavery and human trafficking
risks arising from supplier relationships using
anumber of different methods. These include
assessing new and existing suppliers and
conducting supplier site visits. In the event
thatan issue is identified, we will undertake
appropriate remedial action.
Sanctions
Rotork has in place an established sanctions
compliance programme that seeks to mitigate
risk relating to trade and financial sanctions;
thisincludes screening third parties through
sanctions software and monitoring changes in
legislation for restrictions on supplying products
in certain territories or to certain third parties.
With a focus on mitigating against diversion of
goods to sanctioned territories and sanctioned
persons, policies and procedures (documented in
the Sanctions Manual) were updated throughout
2024 and actions highlighted in the sanctions
risk assessment were implemented. Review and
updates to the policies and procedures were
made with reference to guidance released from
US, EU and UK regulatory authorities, including
the new Office of Trade Sanctions Implementation
which was established by the UK government in
October 2024. Further training was also provided
during 2024 and will continue throughout 2025.
Fair competition
During 2024 we reviewed our Fair Competition
Policy, and prepared updated policy wording
and an accompanying manual, which provide
more in-depth guidance for our employees.
Launch of these documents, as well as
accompanying targeted, risk-based training
torelevant employees, is planned for 2025.
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Operating responsibly continued
Culture, ethics and
governancecontinued
Our policy on political donations
Rotork is a politically neutral organisation. Our
Code of Conduct includes a section on political
donations, confirming that Rotork does not
make political donations in any part of the world,
to any political campaign, party, candidate or
their affiliated organisation. No political donations
were made during the year.
Encouraging colleagues to ‘Speak Up’
Rotork has an open and transparent culture, and
this is underpinned by our Speak Up Policy.
Our Speak Up Policy encourages the reporting
ofany suspected wrongdoing as soon as possible
and without fear of detrimental treatment
because of raising a concern. It applies to all
individuals working within, for, or with Rotork,
including suppliers.
We offer a range of channels for raising concerns.
Our policy encourages colleagues to contact
their line managers, our Head of Ethics and
Compliance, our Chief Human Resources Officer
or our Group General Counsel & Company
Secretary. We also offer an independent, global
and multilingual external reporting service
managed by Safecall. This service allows concerns
to be raised anonymously if preferred.
Theservice is available to employees, external
stakeholders and the public and is operated
24hours a day, seven days a week. Reports can
be made to a local freephone number or submitted
via Safecall’s website. All concerns raised are
investigated promptly.
In 2024, we continued to promote the
importance of speaking up and our different
Speak Up mechanisms, through mandatory
eLearning and other communication channels.
Our Speak-Up Policy is available in 11 languages
and is published on our website at www.rotork.
com/en/sustainability/esg-reports-and-policies/
speak-up-policy.
Priorities for 2025
Aiming to continuously improve, our key
priorities in 2025 are to:
• Deliver training to all Rotork employees
onour refreshed Code of Conduct.
• Launch our revised Fair Competition
Policyand manual and accompanying
employee training.
• Continue to enhance our third-party risk
management programme.
Board-level oversight
As part of its ongoing oversight of the
Company’s good governance practices and
oversight of the Company’s culture, the Board
received a detailed presentation from the Group
General Counsel & Company Secretary on
Rotork’s ethics and compliance programme at
itsAugust 2024 meeting, together with further
updates at other meetings during the year as
necessary. The Board reviews concerns reported
about suspected wrongdoing, and, where required,
agrees actions to be taken to prevent a potential
reoccurrence. The Board is updated on the
compliance training undertaken and planned
during the year, together with completion
statistics. It also reviews the results of our
employee engagement surveys, to help identify
any areas where employees feel that there is a
divergence between their experience and our
stated culture.
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Enabling a
sustainable future
Our mission
To help drive the transition to a low carbon
futurewhere environmental resources
areusedresponsibly.
Our commitments
• We play our part to enable the global
energytransition and support a cleaner,
moresustainable future.
• We support customers’ energy and emissions
reduction and enable them to incorporate
renewable energy into their operations.
• We enable sustainable management of
waterresources and greater waterefficiency
for our customers.
In this section
• Electrifying upstream oil and gas
• Ensuring supply of key transitional materials
• Advancing sustainable fuels
• Managing water resources
SDGs we will progress
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Enabling a sustainable future continued
Electrifying upstream oil and gas
As electrification of the upstream and midstream
becomes ‘business as usual’, Rotork is well
placed to support and benefit from the transition
to electric powered valve actuators and away
from the fluid power actuators used traditionally
in these sectors of the oil and gas industry.
The signatories of the Oil and Gas Decarbonization
Charter (OGDC), which represent 43% of global
oil and gas production, are aiming for (i) near-zero
upstream methane emissions by 2030 and (ii)
zero routine flaring by 2030. Electric actuation
isplaying a crucial role in achieving these aims.
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Division: Oil & Gas
Segment: Target
Sector: Upstream electrification
Region: APAC
Oil and gas producers are seeking to electrify
their operations and integrate the use of
renewable energy as an alternative to traditional
fuel sources in order to reduce their scope 1
and 2 emissions per barrel of oil equivalent
produced. In 2024 Rotork won a large order
for electric control valve actuators from a
major oil and gas exploration and production
company working to electrify operations at
amature gas field in EasternAustralia.
Division: Oil & Gas
Segment: Target
Sector: Upstream electrification
Region: EMEA
A typical oil and gas production wellhead
utilises a choke valve to control the flow
andpressure of hydrocarbons to the next
production process step. Traditionally the
choke valve has been controlled manually
using a hand wheel. A disadvantage of this
method is the risk of methane emissions
downstream (e.g. through emergency
venting) if there is an unplanned increase
inflow or pressure whilst the wellhead is
unmanned. An alternative is to use electric
actuators to control the choke. This approach
was taken by a Rotork customer for its new
oil field located in East Africa.
Enabling a sustainable future continued
Ensuring supply of key
transitional materials
The transition to low-carbon technologies will
require a reliable supply of critical metals and
minerals used in clean energy systems such
assolar and wind power, electric vehicles and
batteries, and hydrogen electrolysers. However,
the increased demand for these materials may
surpass current known resources.
Rotork products have applications across the
mining and metals value chains. In the mining
industry, applications include dewatering, HVAC
and dust control in underground mines, as well
as slurry pumping, dewatering, water management
and flotation. Additionally green hydrogen,
produced with the help of Rotork flow controls,
can facilitate the lower-impact production of
essential basic materials like steel and cement.
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Division: CPI
Segment: Target
Sector: Mining
Region: Americas
Copper is widely seen as the ‘energy
transition’ metal due to its role in renewable
energy infrastructure, energy storage systems
and electric vehicles. Rotork’s IQ3 electric
actuators were selected for critical flow
control applications in an important water
reuse project by a mining customer. When
the project is completed the mine will no
longer have to draw water from a local river.
Division: CPI
Segment: Target
Sector: Decarbonisation – hydrogen
Region: EMEA
Steel is widely viewed as essential for modern
living whilst at the same time being a difficult
to decarbonise industry. Rotork is working
together with a highly innovative customer
inNorthern Sweden which is scaling up a
production process to produce green hydrogen,
green iron and green steel. Oncethe customer
has succeeded in steel production it plans to
turn its hand to other hard-to-abate industries.
Enabling a sustainable future continued
Advancing sustainable fuels
The global aviation and maritime sectors –
responsible for 4-6% of total global emissions
– have both committed to net-zero by 2050.
Inaddition to operational efficiencies, the
increased use of lower-carbon fuels is an
important part of their transitions.
Existing sustainable fuel projects already utilise
Rotork’s network control equipment and electric
actuators. The increased use of green hydrogen
as a transport fuel is also an opportunity for
further applications of Rotork technology. Green
hydrogen is produced from water and electricity
using an electrolyser, with each electrolyser
requiring a significant amount of highly certified
flow control equipment. Decarbonising transport
offers power-to-fuel opportunities in renewable
gases, fuels, and ammonia production.
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Division: CPI
Segment: Target
Sector: Marine
Region: APAC
Leading shipowners are transitioning to
low-carbon and zero-carbon fuels such as
methanol and ammonia in order to achieve
net-zero emissions in the sector by 2050.
In2024 Rotork’s battery-backed-up electric
actuators were selected – over traditional
pneumatic powered actuators – by a major
shipping and logistics company for installation
on its latest green methanol powered
container vessels. These vessels will produce
significantly lower lifecycle emissions
compared to traditionally powered ones.
Division: CPI
Segment: Target
Sector: Decarbonisation
Region: APAC
Hydrogen has a wide range of potential
future applications, thanks to its versatility
and its clean energy properties. Possible
applications include transportation, industrial
processes (e.g. steel), power generation,
heating, and energy storage. Rotork is
supplying its fail-safe flow control solutions to
an Australia-based electrolyser manufacturer
currently building one of the world’s largest
proton exchange membrane electrolysers.
Enabling a sustainable future continued
Managing water resources
The World Economic Forum’s Global Risks Report
2025 rated extreme weather events (including
flood and drought) as the second highest risk
over the next two years and themost severe risk
over the next ten years. Atpresent, at least half
ofthe world’s population experience high water
stress for at least one month each year.
Technology will play an important role in managing
these risks through increasing efficiency, supply and
protection. Rotork technology assists water and
wastewater treatment, recycling and desalination
processes, as well as playing a role in flood defence
infrastructure. In all these applications, Rotork
provides innovative, reliable flow control solutions
to help manage water and build resilience to
extreme weather events.
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Division: Water & Power
Segment: Target
Sector: Water
Region: APAC
There is strong demand for water infrastructure
across developed and developing markets
driven by health and safety, economic
development and population growth and
migration. During 2024 Rotork commenced
amajor wastewater treatment plant upgrade
project by the Selangor river in Malaysia –
replacing a nearing-retirement Rotork system
with the latest IQ3 Pro electric actuators and
Pakscan network controllers.
Making a positive
social impact
Our mission
To support thriving, fair
andresilient communities.
Our commitments
Diversity
• We develop and deliver initiatives to drive
greater representation from diverse groups,
including gender and ethnic diversity.
Fair pay
• We contribute to a fairer society more
broadly, including by ensuring 100%
ofemployees are covered by our Fair
PayFramework.
In this section
• Brand and reputation
• Our people and culture
• Our social contribution
SDGs we will progress
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Making a positive social impact continued
We aim to support thriving,
fairandresilient communities.
We strive to make a positive social impact on
ourpeople, supply chain, and communities. By
providing high-quality employment, we contribute
significantly to economic stability. We engage
proactively and fairly with all stakeholders to
understand and address their needs. Additionally,
we support charitable causes aligning with our
sustainability goals and employees’ interests,
extending our positive impact.
We are committed to being a fair employer,
promoting equal opportunity and fostering an
inclusive workplace. Recognising that diversity
enhances business success, we actively work to
advance underrepresented groups and tackle
social inequality through targeted outreach
programmes. By nurturing talent from diverse
backgrounds, we create a culture where everyone
can thrive and contribute to our success.
This section outlines how we engage with and
support our people and communities, positively
impacting individuals and society.
Brand and reputation
Rotork’s brand is globally recognised and highly
respected. It stands for innovative, quality,
market-leading products and services.
Our brand and reputation are consistently ranked
among the most important sustainability issues
in our materiality assessments. Our sustained
success relies on building and maintaining
Rotork’s strong brand with new and existing
customers and employees.
Attracting, developing, and retaining a diverse
range of talented individuals by being an employer
of choice, providing fair and equal pay and
benefits, and demonstrating our commitment to
diversity and inclusion are central to maintaining
our market leadership and seizing new
growthopportunities.
Our people and culture
At Rotork, we strive to be a great place to work.
Engaged and committed employees are essential
to successfully delivering our strategy and
achieving sustainable business growth.
Talent management and
successionplanning
Attracting, recruiting, developing, and retaining
talented people is key to successfully delivering
our strategy.
We completed a full talent review process
in2024 to look at our skills and capabilities
throughout our entire organisation and reviewed
colleagues identified as future talent for succession
planning purposes. Our senior leaders also
completed a personal profile, which our Board
reviews as part of our talent management process.
Personal profiles (which include a comprehensive
development plan) enable us to better understand
in detail our talent pipeline and ensure the
rightdevelopment is in place for key individuals.
33% of our senior leaders are new in their role
in2024, with around half of those being
internalpromotions.
In 2024, we digitalised our performance
management process to enhance the experience
for our people and managers and ensure that
all employees' objectives are aligned with
delivering our strategy. We conducted
performance management training during the
new system's launch and refresher training
throughout the year. Our new performance
management system enabled our colleagues
totie their objectives directly to our Growth+
strategy. It provides an easy-to-use, transparent
process to support their performance and
development conversations with their managers.
2024 also saw the third intake of our global
Graduate and Internship Programmes as we
continued our commitment to developing early
career talent. We have set a target that at least
50% of participants in our schemes are diverse,
female, ethnic minority, or from other groups
currently underrepresented in our business
toincrease the diversity of our talent pipeline.
We exceeded this target in 2024 (90%). Our first
wave of graduates also rolled off the programme
into permanent positions around the business.
In 2024, we again donated unused funds from
our UK apprenticeship levy to organisations
inother industries that support young people
indeveloping new skills and capabilities.
We are proud to have a good mix of long-serving
and newer employees. 37% of employees have
been with Rotork for over ten years, while
46%joined in the last five years. We believe
themix of Rotork experience and new external
experience is integral to our success and enables
us to continue to develop and grow.
In 2024, we launched a programme to
understand our culture, identify strengths, and
uncover long-term opportunities to accelerate
growth and scalability. While our existing
values have served us well over the past five
years, this initiative provided an opportunity to
evolve, aligning more closely with our Growth+
strategic pillar “Invest in our People and
Culture” and shaping the sustainable future
ofRotork’s leadership.
To evolve and continue to build on our strong
cultural foundations, we engaged 800 employees
across 27 countries, listening to their insights
to understand our strengths and areas for
growth. This feedback was instrumental in
understanding our path to evolve from our
previous values, to defining our new cultural
DNA which will guide us forward:
We value our customers
We grow together
We win as a team
These principles will shape how we lead, grow,
and engage our people and customers, fostering
behaviours and experiences that drive success.
Our cultural DNA reflects what makes Rotork
unique while laying the foundation for
collaboration, innovation, and shared success.
In January 2025, we began introducing our
evolved Cultural DNA attributes with our
employees and leaders. Throughout 2025 and
beyond, a full roll out of a comprehensive
behaviours framework that underpins these
DNA attributes will be deployed. This will
bereinforced by actionable behavioural
competencies linked to both the “what” and
“how” of performance – empowering us to
tackle challenges, seize opportunities, and
unlock our full potential as an organisation.
This multi-year journey ensures that our culture
remains a driver of long-term success. By
embracing our evolved DNA as Rotork scales,
we are building a more customer-focused,
connected, and winning Rotork.
Cultural journey: building a stronger Rotork
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Making a positive social impact continued
Our people and culture continued
Training and development
We recognise that a strong learning culture is
essential, and we are focused on ensuring that
our people have the right skills and experience
to deliver our Company strategy.
In 2024, we completed our 12-month Leadership
Programme for our senior leadership population,
which focused on developing leadership capabilities
aligned with our values. We also launched the
Business Manager Programme for our Country
Leaders, Plant Managers, and other regional
leaders, which built on the foundations of our
Leadership Programme to develop commercial
and operational leadership capabilities.
Line managers also attended performance
management workshops, which focused on
achieving results that align with our values
andaligning reward with high performance.
We also continued to develop the learning
content and hosted functional programmes
inour learning system, learning@rotork.
Employee engagement
Employee feedback is critical in ensuring our
employees’ views are considered in decisions
made at the Board and management levels.
These insights also mean we can respond to
anyconcerns promptly and understand what
matters most to our people.
In 2024, we transitioned from our internally
managed pulse survey to a comprehensive
engagement survey, partnering with a third party.
This strategic shift enables us to benchmark our
engagement levels against industry standards
andsharpen our focus on fostering meaningful
engagement across Rotork. 80% of employees
participated in the new survey (79% in the former
pulse survey in 2023). This year, in our survey,
wecarried forward the ‘Rotork as a place to
work’ measure and maintained a strong score
of7.1/10 (7.4/10 in 2023).
As in previous years, for 2024, a portion of the
management and leadership population’s bonus
opportunity is linked to maintaining high levels
of employee engagement.
Wellbeing and mental health
We have a strong focus on our employees’
wellbeing and mental health. We continue to
increase the number of Mental Health First
Aiders (MHFAs) trained worldwide, and we now
have approximately 100 MHFAs throughout the
Group. We hosted a Mental Health First Aiders'
network session to discuss mental health at
Rotork and the support they require to help
other colleagues. We have also introduced new
learning modules to support line managers on
mental health awareness and other supporting
content for managers and employees on our
learning@rotork platform. We provide a Global
Employee Assistance Programme, which includes
mental health support and counselling 24/7 in
colleagues’ local languages.
Fair pay and benefits
All colleagues should be appropriately and fairly
rewarded for their contributions. In 2020, we
launched our Fair Pay Framework, which includes
five focus areas to guide our reward policies,
procedures, systems, and decision making and
support fair and competitive remuneration.
Our original Framework included a commitment
to pay a real living wage (rather than the minimum
wage) where this exists in a country. In 2021, we
increased our commitment and now ensure we
pay more than the living wage published in a
country. Rotork is accredited as a Living Wage
Employer by the Living Wage Foundation.
In 2024, for the third consecutive year, we
brought forward the annual pay review from
April to January for all employees, excluding
senior leaders. This adjustment continues to help
address the ongoing impact of the cost of living.
With most employees owning shares, Rotork is
proud to have well above-average employee
share ownership. Colleagues in many of our
locations receive a gift of Rotork shares each
year, giving our people an additional personal
and financial stake in our success.
All permanent employees participate in the
Rotork bonus scheme, regardless of their role
or level, after three months of service. We link
performance to reward, ensuring we recognise
those who make the most significant contribution
in line with our values. We benchmark our reward
and benefits arrangements externally in every
country we operate. We also provide pension
arrangements based on local laws and practices.
2024 achievements
• Completed a cultural assessment of our
business to understand our cultural
strengths and how we evolve.
• Completed our Leadership Training
Programme to help deliver Growth+.
• Launched our new Business
ManagerProgramme to develop our
leaders' capabilities.
• Launched our new performance
management system – Perform.
• Met our early career diversity targets for
our Graduate and Internship Schemes.
Collective bargaining
We uphold colleagues’ freedom of association
and recognise their right to collective bargaining.
Collective bargaining arrangements exist in
several of our sites and countries of operation.
Around 6% of our employees globally are
covered by union agreements. We are committed
to open and constructive engagement with our
employees and their representatives.
Diversity and inclusion
We are committed to fostering an inclusive and
diverse workforce and recognise the strategic
advantage of valuing diverse perspectives
and contributions. Our Head of Culture and
Inclusion leads our focus in this area.
As at 31 December 2024, 55.56% of our Board
are diverse (by gender or ethnicity), which signals
our focus and commitment to diversity. This
proportion changed to 62.5% from 1 January 2025.
Our Board Diversity and Inclusion Policy is
available to view at https://www.rotork.com/
en/investors/diversity-and-inclusion.
For International Women in Engineering Day in
June, we undertook a series of internal interviews
with males and females in STEM-related roles
across Rotork to share their experiences and
thoughts. We again celebrated Pride Week,
encouraging colleagues to adopt a rainbow
version of the Rotork logo in their email
signatures or to use a rainbow background
intheir Teams calls.
We relaunched our Graduate and Internship
Scheme in 2022, setting a target to ensure we
reflect the diversity of the communities in which
we operate. To increase the diversity of our
talent pipeline, we have set a target that at least
50% of participants in our schemes are female,
from ethnic minorities, or from other groups
currently underrepresented in our business.
We exceeded this in 2024 (90%).
Our Respect at Work and Equality of Opportunity
Policy reflects our responsible employer approach.
This aims to promote fair and objective treatment
across recruitment and employment, regardless
ofany protected characteristic.
Read more P.61
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Making a positive social impact continued
Our people and culture continued
Gender diversity
We are committed to increasing the number
ofwomen in our organisation at all levels.
At31December 2024, females comprised
25.0% of our workforce (2023: 23.7%), our
Board comprised 44.44% females (2023: 50%),
and the Rotork Management Board (our Executive
Committee) and its direct reports combined
comprised 25% females (2023: 23.7%). From
1January 2025, our Board was comprised of
50%females.
Our 2024 Gender Pay Report shows that the
UK's mean pay gap of -17.6% (2023: -3.3%)
continues to favour women, and our median
average pay gap is 5.8% (2023: 7.2%). This
compares to the UK’s national gender pay gap
figure of 13.1% and reflects our continued work
in this area. Our Gender Pay Report 2024 will be
published in April 2025 and will be available on
our website.
We are a member of the 30% Club, which
aims to achieve at least 30% representation
of women on all boards and C-suites globally.
We also participate in the Bloomberg Gender
Reporting Framework, a voluntary disclosure
ofgender-related metrics, demonstrating our
commitment to transparency and gender equality.
We are also a partner of the Women in Engineering
Society (WES), which aims to inspire women to
achieve as engineers, scientists, and leaders.
We are proud to have achieved the target in
the Hampton-Alexander Review of 33% female
representation on our Board. We also meet the
requirement that at least one of the Chair, Senior
Independent Director (SID), CEO, or CFO be
female. Any new appointment to the Board is
made with consideration to our Board Diversity
and Inclusion Policy. The Board is committed
toensuring its membership has diversity in its
broadest sense, and we work with search firms
that are signed up to the Voluntary Code
ofConduct.
Ethnic diversity
We have already exceeded the Parker Review
target of having at least one member from an
ethnic minority background on all FTSE 250
boards by 2024.
We remain committed to increasing ethnic
diversity at the Executive Committee (Rotork
Management Board) and its direct reports levels.
This is important in providing senior-level role
models from diverse backgrounds. However, we
cannot obtain full, accurate global ethnicity data
for our senior population from all jurisdictions
we operate, preventing us from stating a future
senior diversity target at this stage.
We strive to ensure that diversity is considered
in our talent management process. We actively
review performance, talent, and remuneration
decisions to ensure fairness. We have set a
target of having at least 50% of our early
careers programme participants come from
diverse and underrepresented groups in
ourbusiness.
Since 2019, we have published our UK Ethnicity
Pay Report alongside our UK Gender Pay Report.
Our mean pay gap is 2.4% (2023: -13.1%), and
our median pay gap is –5.4% (2023: 3.5%).
Thefull details can be found in our Gender Pay
Report for 2024, published in April 2025 and
available on our website.
Gender pay data
Gender pay gap reporting compares the hourly
pay of men and women on a specific date,
irrespective of their role or level in the
organisation. A negative percentage figure
indicates an outcome in favour of women.
The mean (average) gender pay gap calculates
the difference between men's and women’s
average hourly pay using employees' hourly pay.
Mean averages give a useful overall indication of
differences in pay; however, a small number of
highly paid individuals can significantly impact
the figure.
The median pay gap is calculated by comparing
the pay of people in the middle of the hourly pay
lists for men and women.
Rotork’s mean average pay gap in the UK has
favoured women since 2019, and our figures
remain well below the national average gender
pay gap of 13.1%.
Gender pay reporting
All Rotork employees in the UK:
At 5 April 2024 2023 2022
Mean Gender Pay Gap across all Rotork employees in the UK (17.6)% (3.3)% (8.3)%
Median Gender Pay Gapacross all Rotork employees in the UK 5.8% 7.2% 5.5%
UK’s National Gender Pay Gap
1
13.1% 14.2% 14.4%
1 Source: Office of National Statistics 2024.
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Making a positive social impact continued
Our people and culture continued
Age profile
(As at 31 December 2024)
30 to 49 57%
50 and over 31%
Under 30 12%
Ethnic origin
(As at 31 December 2024, based on
thosewhodeclaredtheirinformation)
White 53.0% Black 3.3%
Asian 36.0% Other 1.8%
Hispanic 4.9% Mixed 1.1%
Senior leaders’ ethnicity
(As at 31 December 2024, includes RMB members
andtheirdirectreports where declared)
Gender profile
(As at 31 December 2024)
Early careers diversity
(Graduate, Internship, and Apprentice Programme,
diversity figures as at 31 December 2024)
Male 75.0%
Female 25.0%
Non diverse 49%
Diverse 51%
Employees
White 73.6% Hispanic 4.4%
Asian 16.5% Mixed 2.2%
Black 2.2% Other 1.1%
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Making a positive social impact continued
Our social contribution
Rotork strives to contribute positively to the
communities in which we operate worldwide.
This is integral to our commitment to being a
good corporate citizen. Our ethos is grounded
inour values and behaviours and is part of what
makes Rotork a great place to work.
We target an annual contribution of 0.1% of
profits to our nominated charity partners and a
similar percentage to local charitable causes. Local
teams are empowered to decide how to distribute
funds and support their local communities.
Charity partner selection process
We partner with international charities that
alignclosely with our purpose, our values, and
the UNSDGs. Weselect charity partners using
fourkey parameters:
1. Accountability requirements
How will donations be used, how readily areaccounts
available, and what proportion reaches recipients?
4. How are they funded?
Are they an established and registered charity,
non-political and non-religious?
2. Fit. Do key causes align,
andwhat’stheglobal reach?
Do they align with our business and
supportourpurpose of ‘keeping the
worldflowingforfuture generations’?
3. Do they empower for the long term?
Are they involved in supporting
communitiesinthelong term?
Our global charity partners
At the end of 2024, we donated £160,000 to
our global charity partners, Renewable World
and Pump Aid, increasing the donations from
2023. These funds will be invested in 2025
inthefollowing areas:
Pump Aid
We will further our commitment to Pump Aid’s
Beyond Water initiative by establishing a shared
value partnership. Through this collaboration,
our UK-based teams will leverage their expertise
to support and enhance Pump Aid’s work in
Malawi. This partnership will support their
efforts to reach over 400,000 people across
1,000 rural villages with effective repair and
maintenance services, resulting in a 99.8%
functionality rate for water infrastructure –
farabove the national average of just 60%.
Through our support, we are investing in
upskilling and equipping local mechanics to
deliver affordable services to communities,
improving technology to predict breakdowns
and support supply chain efficiencies, and
undertaking initial repairs on non-functional
infrastructure to bring them into the Beyond
Water ecosystem. Our collaboration also
supports Pump Aid’s long-term goals, which
include expanding services to rural piped water
systems and implementing water resource
management measures that strengthen rural
communities’ resilience against the increasing
threats of drought and flooding.
Our technical expertise will back Pump Aid’s
training and assessment of mechanics while
driving supply chain improvements, forging
closer links between our global teams and
PumpAid’s team on the ground in Malawi.
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Our social contribution continued
Our global charity partners continued
Renewable World
Building on Renewable World’s current work in
Kenya’s Kajiado County through the 2024 E4H2
project, of which Rotork is a valued and vital
supporter, the E4H3 project will leverage clean
energy technologies to enhance the availability
and quality of health services for over 42,000
people in the catchment areas of 10 energy-poor,
off-grid remote health facilities. E4H3 is a
three-year initiative, starting January 2025 and
concluding December 2027. Rotork’s support
in2025 will help Renewable World deliver
round-the-clock health services powered by
clean energy for 8,400 people served by the
firsttwo targeted facilities.
E4H3 will enable the increased uptake of 24/7
healthcare at 10 facilities for the 42,000+ people
who rely on them. It will provide the necessary
solar power systems to electrify the health
facilities, promote their services within local
communities, and support staff and stakeholders
in managing facilities and technologies for the
future. This will support critical functions such as
vaccine refrigeration, lighting, laboratory testing,
and round-the-clock care. Community awareness
will also be a key component, with campaigns
conducted through ‘barazas’ (community meetings)
and medical camps to inform communities about
available health services.
Making a positive social impact continued
Additionally, the project will enhance healthcare
systems by procuring ICT equipment and providing
training for electronic medical record keeping.
This will improve access to medical records,
ensure timely reporting, and enhance the quality
of care.
By the end of 2027, the target groups which will
benefit include:
• Over 42,000 people will have access to
improved, clean, energy-enabled health
services at 10 remote health facilities.
• More than 24 health staff will be equipped
tooperate and maintain clean energy systems,
health equipment, water filtration systems,
handwashing stations, incinerators, and
improved toilet facilities.
Looking forward
In 2024, we ended our partnership with WeForest
and enjoyed working with them to advance their
goals. In 2025, we will identify a new global
charity partner through a collaborative employee
voting process. This initiative underscores our
unwavering commitment to social responsibility
and enables us to extend our positive impact to
new organisations that resonate with our team’s
values. By empowering our employees to select
the charity, we ensure that our philanthropic
efforts are meaningful and aligned with the
causes that matter most to our diverse workforce.
This collective decision making fosters a more
profound connection within our community.
Itamplifies our ability to make a significant
difference in the lives of those we aim to
supportworldwide.
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ESG and sustainability governance, integration and measurement
We use several approaches to integrate ESG
objectives into our approach to business. This
includes tying the successful delivery of social
and environmental objectives to management’s
remuneration. It also includes standardising
ourapproach by formalising sustainability
considerations and expectations within key
management and decision-making processes.
We employ a range of published codes and
policies which guide our approach. We also
commit to measuring our performance and
reporting transparently on our progress.
ESG governance
Rotork plc Board oversight
To ensure the appropriate level of governance in
this key area, at the beginning of 2024 the
Safety and Sustainability (S&S) Committee was
reconstituted under its refreshed remit and the
Committee meetings were structured to allow
the Committee to undertake a deep dive into an
important safety or sustainability focus area at
each of its meetings.
The Board receives an update on our ESG, safety
andsustainability agenda from our CEO at
everymeeting.
The Chairs of our Safety and Sustainability
Committee and Nomination Committee
alsoprovide an update on the activities of
theCommittees following their meetings.
TheBoard reviewed and approved this report,
prior to publication.
Roles of the Safety and Sustainability
Committee and the Nomination Committee
ESG topics are overseen by the Safety and
Sustainability Committee and the Nomination
Committee. The Safety and Sustainability
Committee oversees the Group’s safety
andsustainability strategy, performance,
anddisclosures.
The Company’s Diversity and Inclusion Policy,
strategy and implementation of initiatives
areoverseen by the Nomination Committee.
The Safety and Sustainability Committee and
Nomination Committee termsof reference
wereboth updated in October 2024 and are
published on our website at the following address:
https://www.rotork.com/en/investors/committees.
Safety and Sustainability Committee
membership is comprised of four independent
non-executive directors being: Andrew Heath
(Chair), Karin Meurk-Harvey, Vanessa Simms and
Janice Stipp. Our CEO has a standing invitation
to attend meetings, and other directors, the
Investor Relations Director, the Head of ESG
andSustainability, theChief Human Resources
Officer and the Global Head of HSE may also
attend meetings byinvitation. Nomination
Committee members include non-executive
directors Dorothy Thompson (Chair), Andrew
Heath, and Janice Stipp.
Rotork Management Board
Members of the Rotork Management Board
(RMB) take responsibility for elements of our
ESG agenda as follows:
• Our Chief Executive Officer has overall
responsibility for the delivery of our
ESGagenda.
• Our Chief Human Resources Officer
isresponsible for the people and
communitystrands.
• Our Chief Financial Officer is responsible for
financial and non-financial reporting, including
compliance with disclosure requirements.
• Our Operations Excellence Director is
responsible for the environmental strands
ofour agenda and the integration of ESG
within procurement.
• Our Chief Information Officer is responsible
for information and cybersecurity.
• The Managing Directors of the Oil & Gas,
Water & Power and Chemical, Process
&Industrial divisions are responsible for
ensuring our sustainability objectives
areembedded within their respective
divisional strategies.
Management Board members also have
specificresponsibilities for climate-related
matters, including to support the delivery of
ourscience-based emissions reduction targets.
See our TCFD report on pages 79 to 85 for
further details.
Group-wide policies
We have an extensive suite of ESG policies
whichgovern our approach. The key policies are
published on our website, at www.rotork.com/
en/environmental-social-governance/esg-
reports-and-policies. Our policies set out our
commitments to responsible and sustainable
business practices. They apply Group wide.
We provide training to ensure employees
understand and implement our policies. We
alsomonitor compliance with our policies, for
example through audits of higher-risk suppliers.
See page 49 for more information about
employee compliance and ethics training.
ESG integration
Key performance indicators
We measure the Group’s performance against
fivefinancial performance indicators andtwo
non-financial performance indicators: scope 1
and 2 emissions reduction and total recordable
incident rate (see page 15 of thisreport).
Link to remuneration
Our performance against these non-financial
KPIs has been linked to executive directors’
andsenior leaders’ remuneration.
Annual bonus - ESG measures
• Total recordable incident rate.
• Environmental innovation (measured through
evidence of greater positive environmental
impact through our products and increased
customer engagement on sustainability issues).
• Culture and engagement scores.
In 2024 non-financial performance represented
a10% share of the bonus opportunity for
executive directors. In order to drive increased
focus, incentives for the entire senior leadership
population (around 100 people) are also formally
linked to these measures.
Depending on their role, some individuals also
have additional sustainability targets included
intheir strategic personal objectives for the
year(15% of the bonus opportunity).
Long Term Incentive Plan - ESG measure
The LTIP awarded in 2024 included scope 1 and
2 emissions reduction as a performance metric
(see page 150).
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ESG and sustainability governance, integration and measurement continued
Integration into strategy and
businessprocesses
We are continuing to drive deeper integration of
ESG into our strategy and core business processes.
Corporate strategy
We have integrated ESG and sustainability-related
market dynamics into our Growth+ strategy.
Thisincludes embedding requirements to
enableus to meet our science-based emissions
reduction targets.
New product development
We are also creating product development
roadmaps to reduce emissions associated with
use of our sold products, to meet our emissions
reduction target and customer demand for
lower energy use/emissions products. We have
also included sustainability considerations at
each of the important checkpoints in the Rotork
Development and Launch Process for new
products. See pages 41 and 42 for more details
on our emissions reduction targets.
Governance
We formalise the integration of environmental,
social and ethical considerations into our key
governance documents. These are available
atwww.rotork.com/en/environmental-social-
governance/esg-reports-and-policies.
Our communications and ratings
We are committed to measuring our ESG
performance and reporting transparently
onprogress. We report on the delivery of our
sustainability programme through the Annual
Report and our website, and we actively engage
with the ESG indices (latest ratings on page 36).
Basis of preparation
This report has been prepared in line with the
Global Reporting Initiative (GRI) Standards: Core
option. While the implementation timelines of
forthcoming sustainability reporting regulations
may change, our future annual reportswill seek
to align with these frameworks.
We also provide disclosures against the
Sustainability Accounting Standards Board
(SASB) framework to support our
communication of financially material
sustainability information.
We shall publish our GRI index on our website
inthe first half of 2025.
Further information
Sustainability Accounting Standards Board
We have provided disclosures against the SASB
framework to support our communication of
financially material sustainability information
onpage 66.
ESG commitments
We have been a signatory to the United
NationsGlobal Compact since 2003. We work
tomeet its Principles. This report contributes
toward our United Nations Global Compact
Communication on Progress requirements.
Weare a member of the 30% Club, which
aimsto achieve at least 30% representation
ofwomen on all boards andC-suites globally.
Asat31 December 2024, Rotork’s Board had
44% female representation. From 1 January 2025,
our Board is comprised of 50% females.
Get in touch
We welcome any feedback on this report and
our sustainability agenda. Get in touch via:
esg@rotork.com.
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Sustainability Accounting Standards Board (SASB) Index
Table 1. Sustainability disclosure topics and accounting metrics
Topic Metric – quantitative Unit 2024 2023 2022
Energy
management
Electricity GJ 44,349 41,849 44,119
Natural gas
1
GJ 36,344 32,902 38,282
Diesel and petrol GJ 16,856 16,475 nr
2
LPG
1
GJ 2,677 3,736 4,674
Steam GJ 1,363 1,515 1,166
Total energy consumed GJ 101,588 96,477 88,241
Percentage grid electricity % from grid
% on-site generation
93%
7%
98%
2%
98%
2%
Percentage renewable electricity % renewable
% non-renewable
56%
44%
44%
56%
34%
66%
Workforce health and safety Total recordable incidentrate(TRIR) Rate 0.22 0.26 0.53
Fatality rate Rate — — —
Near miss frequency rate (NMFR) Rate
3.78
3.97 3.49
Topic Discussion and analysis
Materials sourcing Description of the management of risks associated withtheuse ofcritical materials n/a Annual
Report
2024,
p. 47–51
Annual
Report
2023,
p. 47–50
Annual
Report
2022,
p. 52–54
1 From 2023, the calculation of GJ transitioned to using the UK DEFRA energy conversion rates. While not material, the year-on-year percentage change of natural gas and LPG consumption in GJ differs slightly from the percentage change in their original
units (e.g. in cubic metres of gas).
2 Data not available and ‘not reported’ in prior years.
Table 2. Activity metrics
Activity metric Unit 2024 2023 2022
Number of units produced by productcategory Quantitative Commercially sensitive, not disclosed
Number of employees Quantitative, as at year end 3,493 3,342 3,234
Table 3. Sustainability disclosure topics and accounting metrics that are non-applicable toRotork
Topic Metric – quantitative
Fuel economy andemissions inusephase Sales-weighted fleet fuel efficiency for medium- and heavy-duty vehicles
Sales-weighted fuel efficiency for non-road equipment
Sales-weighted fuel efficiency for stationary generators
Sales-weighted emissions of (1) nitrogen oxides (NOx) and (2) particulate matter (PM) for: (a) marine diesel engines, (b) locomotive diesel engines, (c) on-road
medium- and heavy-duty engines, and (d) other non-road diesel engines
Remanufacturing design and services Revenue from remanufactured products and remanufacturing services
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In this section
Risk management
Description of the Group’s risk
managementprocess.
Read more on page 68
Risk appetite framework
Description of how risks are reviewed and
how the risk appetite framework is applied
tothe management of our risks.
Read more on page 69
Principal risks and uncertainties
Outline of the principal risks and
uncertainties for Rotork and the approach
taken to manage current and emerging risks.
Read more on page 70
Principal risks - detail
Detailed description of the principal risks,
movements and mitigations.
Read more on pages 72 to 77
How we manage risk
Managing the risks of our business is essential to
our purpose of ‘keeping the world flowing for future
generations’. Our approach to risk is intended to
protect the interests of all our stakeholders.
Managing business risks
The Board is responsible for determining the
nature and extent of the risks it is willing to take
in achieving our strategic objectives. Our Group
risk appetite statement sets the tone from the top
and supports decision making to mitigate, control
or accept risks. Rotork’s purpose, ‘keeping the
world flowing for future generations’, is embedded
in the way we assess risks.
Our Group risk management process reviews
those risks that could have an immediate or
longer-term impact. The Board considers risk
throughout the year including key risk indicator
dashboards and a formal review process conducted
twice a year. The Board is assisted in the oversight
of risk management by the Safety and Sustainability
Committee, the Audit Committee, and the Rotork
Management Board.
Principal risks are reviewed and managed using
the Group’s risk management framework which
incorporates both a bottom-up and top-down
assessment. Risk owners are assigned to the
most material risks and appropriate control
measures are decided based on the perceived
materiality and agreed risk appetite. Where a
new response is required to manage a risk, an
action owner is assigned who is accountable for
the delivery of the action, with support from the
Risk and Compliance team. An appropriate action
could be to perform further analysis, to put in
place controls and mitigations, or to address the
risk by identifying other opportunities.
As with all businesses, there are certain risks and
uncertainties that may impact Rotork’s ability to
achieve its objectives. The Group risk management
process is an established way of identifying and
managing risk and is part of our governance
framework as set out in our Corporate Governance
Report; see page 98. The continuous improvement
and execution of a comprehensive and robust
risk management system is of paramount
importance to Rotork.
The Group continues to build on the progress
made in recent years in relation to our risk
management framework, further integrating
itinto business practices and decision making.
In2024, the Group continued to respond to our
principal and emerging risks to provide a clear
picture to our stakeholders on how we view
andmanage the key risks to our business.
An established functional risk review process
results in a bottom-up assessment of risks.
Thebottom-up assessment process includes
areview with all central functions covering
riskidentification, mitigation and reporting,
including emerging risks, risks associated with
ESG and development of further plans to
respond to risks in accordance with risk appetite.
The risks identified in the bottom-up reviews are
consolidated before a top-down evaluation is
performed by management and then reviewed
by the Board. The consolidation process looks at
all risks identified, the impact and likelihood of
each risk and where common risk themes have
been identified. The risks identified are then
evaluated against the existing set of principal
risks and uncertainties, and management
reviews if any updates are required to the
principal risks and uncertainties.
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Risk management Strategic report Corporate governance Financial statements
Top-down
riskassessment
Ongoing risk
mitigationreviews
andcontrols testing
Rotork Board
• Oversight of risk management and internal controls
• Defines risk appetite, statements and preferences
• Promotes a risk-aware culture that emphasises integrity at all levels of business operations
• Determines our principal risks and considers emerging risks and opportunities, ensuring that risk management is embedded within the core processes of the Group
Audit Committee
• Reviews the effectiveness of
internalcontrols
• Reviews the risk management policy
• Approves the internal audit assurance plans
• Oversight of preparations for Provision 29 of
the 2024 UK Corporate Governance Code
Safety and Sustainability Committee
• Promotes appropriate risk management ofsafety and
sustainability matters
• Oversight of how we use the three pillars of our sustainability
framework (Operating Responsibly, Enabling a Sustainable
Future, and Making a Positive Social Impact) to guide our
decision making anddrive our success in line with our
riskappetite
Rotork Management Board (RMB)
• Identifies, consolidates, reports and
manages principal and key risks
• Reports to the Boardon the management
of our principal and key risks
Bottom-up
riskassessment
Divisions and functions
identify, manage and
monitor risks
Group internal audit
• Provides independent assurance over the risk management framework through audits and other assurance work performed during the year,
whichisreportedtotheAudit Committee
Group risk and compliance
• Supports the Group to identify risks and put in place appropriate mitigations
• Promotes a risk-aware culture and adherence to risk appetite
• Reports on the status of principal risks and emerging risks and opportunities periodically, including key risk indicator dashboards
Functional management
• Identifies current and emerging risks and opportunities specific to the relevant function/business unit
• Implements risk management within their designated area of accountability
Risk management process
How we manage risk continued
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Risk management continued Strategic report Corporate governance Financial statements
Risk management process
The Board sets the Group’s risk appetite preference, stating whether
we are tolerant, neutral or averse to a particular risk. These preferences
guide our approach to managing risk. The risk appetite statements
provide guiding principles to support decision making at both a Board
level and throughout the Group. During 2024, the Board reviewed the
risk appetite framework to assess the impact of changes in both the
internal and external environment.
The Board reviewed the application of risk appetite statements and
preferences by monitoring the key risk indicators which are presented
to the Board twice a year.
Rotork uses the three pillars of our sustainability
framework – Operating Responsibly, Enabling a
Sustainable Future, and Making a Positive Social
Impact – to guide our decision making and drive
our success.
The Board is responsible for determining the
nature and extent of the risks it is willing to take
in the achievement of our strategic objectives.
Our Group risk appetite statement sets the tone
from the top and supports decision making.
Therisk appetite framework provides qualitative
and quantitative insight on risks and supports
proactive mitigation planning.
1
Review and update the
risk appetite preferences
2
Identify key decisions
3
Evaluate decisions
against risk appetite
4
Review key
riskindicators
Risk appetite framework
Risk appetite statement: Rotork’s purpose, ‘keeping the world flowing for future generations’, is embedded in the way
that we assess risk. We are committed to generating stakeholder value through innovation and sustainable growth
and will only take considered risks that align with our strategic objectives and established risk appetite.
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The risks include those that would threaten the
Group’s business model, future performance,
solvency, liquidity or reputation. Leaders within
the business have continued to develop Rotork’s
risk aware culture through training and workshops
and an increased focus on mitigating actions.
Emerging risks and opportunities
Our risk management process includes consideration
of risks and opportunities that may impact
Rotork across a range of time horizons.
Emerging risks and opportunities may be
developing or already known events which are
subject to uncertainty and ambiguity and are
therefore difficult to quantify using traditional
risk assessment techniques. Emerging risks and
opportunities are often complex and volatile,
and may be uncontrollable.
Emerging risks and opportunities are identified
throughout the year on a formal basis through
functional risk workshops and with the Rotork
Management Board and the Board twice a year.
The response to each emerging risk or opportunity
is tailored to the specific scenario and emerging
risks and opportunities are managed and
monitored based on the information available.
In 2024, emerging risks identified were kept
under review and it was decided to move the
risks and opportunities associated with technology
and artificial intelligence into our current
principal risks.
The emerging risks and opportunities identified
under the emerging risk and opportunity titled
'technology' are now covered by the principal risk
titled ‘increased competition’. Rotork intends to
continue to embrace new technologies and
innovate to remain a leader in intelligent flow
control solutions in the future. Rotork reviews the
market for new or disruptive technologies and
invests in innovation to stay at the forefront of flow
control technology. As a result of the continued
and measurable risk or opportunity associated,
itwas no longer deemed to be emerging.
The risks and opportunities associated with
artificial intelligence impact a range of Rotork’s
principal risks including ‘increased competition’,
‘critical IT system failure and cybersecurity’,
‘compliance with laws and regulations’ and
‘business change management’. Rotork will
continue to protect against the negative impacts
of artificial intelligence (AI), while embracing the
positive impacts of AI. New or emerging aspects
of AI will continue to be identified as part of risk
workshops, however Rotork will manage the
risks and opportunities through business as
usualactivities and the established Group risk
management process.
The potential impact of a number of new and
emerging risks and opportunities were reviewed
and the defined responses to existing emerging
risks and opportunities assessed. The ability to
identify risks and opportunities that may have a
future impact on Rotork and our stakeholders is
fundamental to our successful risk management
process and is closely linked to the delivery of
our strategic objectives. Emerging risks and
opportunities will continue to be identified
through 2025 as we consider new developments
in the external and internal environment.
Changing stakeholder expectations
Changing stakeholder expectations remains
relevant due to the uncertainty and velocity
ofchanges. Rotork’s traditional markets may
change over the longer term as the world
transitions to new energy sources. This transition
is likely to be a net opportunity for Rotork.
Arapid shift of expectations by a wide range of
stakeholders for Rotork to no longer serve those
traditional markets, may lead to a range of risks
materialising due to the speed of the transition.
Currently, Rotork is well positioned to help
customers drive efficiency improvements,
reduceemissions and take advantage of
newand growing markets such as hydrogen.
Horizon scanning
Horizon scanning is a technique of viewing
risksand opportunities over the medium to
longer term and allows the Group to look
beyond the short term and evaluate its strategy
against possible future realities which are then
used to inform future business planning. During
2024, the Board conducted a horizon scanning
exercise to review key strategic risks against
potential future horizons.
Principal risks and uncertainties
Our risk management processes are dynamic. We continue toassess and prioritise the risks related
to our strategic objectives and their impact on the principal risks. The principal risks identified are
the result of a robust top-down and bottom-up risk assessment process.
Division: CPI
Segment: Target
Sector: Hydrogen
Region: EMEA
Hydrogen has an important role to play in
decarbonising steel production, widely
viewed as a difficult to decarbonise industry.
An innovative plant in Sweden has switched
to fossil-free hydrogen to heat steel at its
rolling mill, reducing GHG emissions to
almost zero. The hydrogen is produced
on-site by a 20MW electrolyser, the largest
inSweden. Rotork’s actuators were chosen
by the customer for its local service capability
and market leading high-quality products.
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Update on 2024 principal risks
It was determined that the risk previously
titled'decline in market confidence' should
beconsolidated with the existing ‘increased
competition’ risk. As noted in the emerging risks
and opportunities section, technology and
artificial intelligence were moved to be managed
as part of existing principal risks.
The risk landscape has continued to be complex,
with many risks interconnected. The Board
reviewed the links and connections between
risks to further understand how Rotork’s risks
may impact each other. For instance, if a
geopolitical risk were to materialise, it could
have a significant impact on our supply chain,
which could in turn impact our customers or
reputation. Tracing through these impacts
andunderstanding where the key mitigating
activities exist allows Rotork to improve the
resilience of the business by focusing efforts
onthose key mitigating activities.
2024 principal risk movements
During 2024, the Board has continued to assess
the principal risks and uncertainties and has
reviewed the effectiveness of mitigations and
responses torisks. The ‘increased competition’
riskincreased moderately as a result of the
consolidation of other risks into one. ‘Supply
chain disruption risk’ has decreased as Rotork
has not experienced the same level of disruption
or uncertainty as was present in previous periods.
‘Business change management’ risk is reported
as reduced due to the mitigations put in place
bythe business to deliver Growth+.
Key risk indicators (KRIs) were kept under review
during 2024. A KRI dashboard is presented twice
a year to the Board. Our KRI dashboard is an
Principal risks and uncertainties continued
important tool to measure the effectiveness
ofmanagement actions. More details on the
Board's oversight of audit, risk and internal
controls are set out in the Corporate Governance
Report on page 115.
Climate change
The Group has embedded the identification of
climate-related risks and opportunities into the
Group’s risk management framework. Climate-related
risks and opportunities remained as a specific
agenda item in every functional risk workshop
held in the business. The output of this work
isdescribed in more detail in the TCFD section
ofthis report on pages 79 to 85. Risks are also
identified throughout the normal course of
business and captured in detailed risk registers.
This includes an assessment of the physical risks
of climate change and the risks and opportunities
related to the transition to a low-carbon economy.
For many climate-related risks, either the severity
of the impact or the likelihood may be uncertain,
and typically these risks may materialise over
longer-term time horizons than more traditional
business risks. To account for this, we use a
horizon risk scanning methodology to assess
those risks that are more uncertain or intangible,
such as climate change. This uses a wider
timeframe than typically used, with short term
as 0–10 years, medium term as 10–25 years and
long term as 25 years and beyond. Each transition
and physical climate risk or related opportunity
has been qualitatively assessed and scored based
on the potential financial impact. The level of
potential financial impact is a function of three
criteria including vulnerability (consisting of level
of exposure, sensitivity and adaptive capacity),
likelihood and magnitude. We also assessed
opportunities in terms of the size of opportunity
and ability to execute.
The risk and opportunity assessment results
(seepages 79 to 85 were used to inform the
next stage of the climate risk assessment – the
quantification of potential financial impact for
some of the most material risks. This will be used
to further develop the continual improvement
ofrisk management responses for incorporation
into our climate transition plan.
In 2024, Rotork undertook an assessment of our
physical risks across our sites. In 2025, the results
of this work will be used to assess the quality
ofthe mitigating actions in place in each site
toaddress key risks. An assessment of Rotork’s
transition risks and opportunities also took place.
For more information see pages 79 to 85.
The Safety and Sustainability Committee has
maintained strategic oversight of the development
of our safety and sustainability strategies, including
the risks associated with climate change.
Formore information see pages 117 to 120.
Focus for 2025
In 2025 we will continue to build on the
workperformed in 2024 which will include
continual assessment of our emerging risks and
opportunities and how risk appetite is applied
tobusiness decisions.
The updated 2024 UK Corporate Governance Code
applies to Rotork with effect from 1 January 2025.
During 2024 we commenced our plans to
comply with the new Provision 29 of the Code,
which will become effective for Rotork from
1January 2026. We have begun the alignment
of what is a material risk and a material control
and, throughout 2025 testing will be conducted
across the material controls identified. The Audit
Committee is leading the process and is fully
engaged with the detailed plans. The changes to
the Code are providing the opportunity to have
a fresh look at our key risks and mitigations.
TheBoard receives regular progress reports from
the Audit Committee and provides direction as
required. Risk appetite remains an important
part of discussions and theadvancements in
riskappetite made during 2024 will continue
toinform our assessment ofmaterial risks
during2025.
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Principal risks
Economic and market conditions
1. Increased competition
2. Geopolitical uncertainty
Environment, Social and Governance
3. Health & safety
4. Compliance with laws and regulations
5. Climate commitments
6. People
Product quality and reliability
7. Major in-field product failure
Resilience
8. Supply chain disruption
9. Critical IT system failure and cybersecurity
Change management
10. Business change management
Low Medium High
Net impact
Net likelihood
Low Medium High
Change management
Economic and market conditions
Environment, Social and Governance
Product quality and reliability
Resilience
2
9
6
3
4
1
5
10
7
8
Principal risks and uncertainties continued
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1. Increased competition
Risk owner: End Market Managing Directors
Link to strategy Link to viability scenario Likelihood Impact Trend
1. Revenue decline
2. One-off costs
Medium Medium
Description
Increased competition on price, product or technological offering leading to a loss of sales globally or market share.
Update
This risk is reported as increasing as, following the Board’s review of the principal risks, it was decided to combine
therisk which was titled ‘decline in market confidence’ with this risk. The consolidation as well as transitioning the
emerging risks associated with technology and artificial intelligence into the principal risks, led to the 'increased
competition' risk increasing moderately. In terms of the underlying risk, demand remains strong, and the Growth+
strategy is delivering on the identified key areas of focus for the Group.
Key mitigating actions
• R&D investment and organic product development, or acquisition of companies with new products, to maintain
differentiation from the competition both in terms of the features and quality of our products and the services we provide.
• Product development and innovation to address new markets and new applications in existing markets.
• Geographic and end market diversification provides resilience to a reduction in any one geographic area but may
not fully mitigate a change in the larger end markets. Rotork has production or sales and service operations in many
low-cost countries.
• Small to mid-sized orders are generally less likely to come under pressure during uncertain economic times.
Weestimate that 75% of Rotork orders by value are small to mid-sized, i.e. less than £100k.
• Increased focus on service offerings to capitalise on increased demand for product maintenance.
• Global supply chain team continually works with supply partners and secures lower prices and efficiencies.
Risk appetite statement
We will invest in R&D, customer service and technology in order to retain a differentiated product portfolio.
Wewillsupport this by providing a leading service solution to our customers.
Focus for 2025
As outlined in our Growth+ strategy, we will:
• Continue our investment in innovative products and services.
• Further develop global key account management.
• Develop the strategic partnerships created with supply chain partners.
• Deliver on the initiatives within the customer value element of our Growth+ strategy.
• Understand how AI and advancements in technology can support our customer offering.
• Identify opportunities to support our customers to increase efficiency, aligned to the ‘electrification of everything’ trend.
2. Geopolitical instability
Risk owner: Chief Financial Officer
Link to strategy Link to viability scenario Likelihood Impact Trend
1. Revenue decline
2. One-off costs
3. Loss of profitability
High High
Description
Increasing social and political instability results in disruption and increased protectionism in key geographic markets.
Business disruption could impact our sales and might ultimately lead to loss of assets located in the affected region.
Update
This risk is unchanged since the prior year. The impact of geopolitical instability could possibly cause issues within
oursupply chain or customer base. Rotork continues to monitor geopolitical events closely and develop strategies
toremain resilient.
Key mitigating actions
• Regular review of global markets considering social and political risks and contingency plans. Market exit strategies
developed and implemented as required.
• Key risk indicator monitoring the percentage of revenue from high-risk markets is reported to the Board.
• The geographic spread of Rotork’s operations and customers limits the impact of any one market on the results
ofthe Group as a whole.
• Cash limits established for overseas businesses, managing our exposure to any one market in line with risk appetite.
Risk appetite statement
We will continue to operate a geographically diverse business and actively pursue opportunities and efficiency within
our global supply chain.
Focus for 2025
• Further develop scenario testing plans to deal with the impact of geopolitical tensions in the territories we do business in.
Strategy key : Target segments Customer value Innovative products & services Trend key: Increasing Unchanged Decreasing
Economic and market conditions
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Environmental, Social and Governance
3. Health & safety
Risk owner: Operations Excellence Director
Link to strategy Link to viability scenario Likelihood Impact Trend
2. One-off costs
Medium High
Description
The nature of Rotork’s core business and geographical locations involves potential risks to the health and safety of our
employees or other stakeholders.
Update
Health and safety risk is unchanged since the prior year as Rotork continued to embed a safety conscious culture.
Thehealth, safety and well-being of our colleagues and customers remains of paramount importance. The positive
results in TRIR and other measures such as the number of safety spots recorded are encouraging and maintaining
those results is a key focus for our health and safety teams globally as we work towards our vision of zero harm.
Key mitigating actions
• Compliance with relevant legislation and codes of best practice.
• Robust Health and Safety Policy and training included in all staff inductions, in addition to regular refresher training.
• Refresh of the global health and safety standards.
• Regular health and safety audits, site checks and reporting.
• Appropriate training is provided for known safety risks.
• Regular communications about accidents at work and visible key risk indicators.
• Engagement of a third party to provide international support and travel advice in all markets and geographies.
• Proactive culture of ‘safety spots’ introduced to help reduce safety issues.
• Internal assurance reviews conducted during the year.
Risk appetite statement
We are fully committed to ensuring the health and safety of all our employees and other stakeholders.
Focus for 2025
Alongside the continuation of our existing key mitigating actions we will:
• Continue to roll out specific training to colleagues toenhance their competencies and safety awareness against our
highest risks including a refresh of our induction process.
• Make continual improvements of our compliance audit programme to deliver assurance over key risk themes and topics.
4. Compliance with laws and regulations
Risk owner: Group General Counsel & Company Secretary
Link to strategy Link to viability scenario Likelihood Impact Trend
2. One-off costs
Low Medium
Description
Failure of our people or third parties who we do business with to comply with laws or regulations or to uphold our
high ethical standards and values.
Update
This risk is unchanged since the prior year. Legal and ethical compliance teams across the Group have implemented a
range ofrisk mitigations that reduce the likelihood of the risk. In 2024, the Code of Conduct was refreshed and launched.
Key mitigating actions
• We are committed to reduce our environmental impact and to comply with all legal and regulatory requirements.
• A ‘no tolerance’ culture, supported by a tone from the top, reinforcing our high ethical standards and values.
• A training programme providing appropriate learning and awareness on a range of compliance topics to relevant staff.
• Due diligence procedures in place for channel partners and acquisition targets before engaging in business relationships.
• Availability and promotion of the Speak Up Policy and hotline; no retaliation policy with concerns raised
beinginvestigated.
• Monitoring of changes in legislation, including sanctions, with appropriate safeguards put in place.
• Mandatory annual confirmation statement confirming compliance with the Code of Conduct, associated policies,
training and conflicts of interest.
• Ongoing assessment of the modern slavery risks arising in our business against specific KPIs.
• Template contract terms include requirements on third parties to comply with applicable laws.
Risk appetite statement
We have no tolerance for non-compliance with relevant laws and regulations in the markets in which we operate.
Focus for 2025
Alongside the continuation of our existing key mitigating actions we will:
• Deliver training to all Rotork employees on our refreshed Code of Conduct.
• Launch the revised fair competition policy, manual and accompanying employee training.
• Continue to enhance our third party risk management programme.
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Environmental, Social and Governance continued
5. Climate commitments
Risk owner: Chief Executive Officer
Link to strategy Link to viability scenario Likelihood Impact Trend
1. Revenue decline
2. One-off costs
3. Loss of profitability
Low Low
Description
We do not deliver against our commitment to enable a sustainable future and Rotork is not recognised by our
stakeholders as being part of the solution, leading to reputational damage.
Update
Rotork is committed to enabling a sustainable future and continues to assess new and upcoming regulations,
identifying those that are relevant for Rotork. The use of renewable energies has increased across global operations,
ashas the work to assess our suppliers’ readiness to set science-based targets.
Key mitigating actions
• Safety and Sustainability Committee sets Rotork’s sustainability strategy and provides oversight.
• Our Annual Report outlines and updates stakeholders on progress against delivering against stated targets.
• Net-zero commitment published.
• Compliance with TCFD guidelines and requirements.
• Science-based targets defined and monitored.
Risk appetite statement
Rotork is committed to enabling a sustainable future. We are responsible for our own operations and supporting our
suppliers and customers to operate responsibly and sustainably.
Focus for 2025
• Continue preparation to comply with new sustainability reporting regulations including the EU’s Corporate Sustainability
Reporting Directive.
• Conduct further environmental lifecycle assessments of products.
• Further engagement with suppliers on emissions measurement.
6. People
Risk owner: Chief Human Resources Officer
Link to strategy Link to viability scenario Likelihood Impact Trend
2. One-off costs
Medium Low
Description
Our people are critical to delivering our success and growth. An inability to attract, retain and develop key and diverse
talent could mean we fail to successfully deliver our strategic goals.
Update
Our people risk is unchanged since last year. Rotork continues to see meaningful progress across our learning and
training, talent management and culture workstreams.
Key mitigating actions
• A continued focus on building early careers talent pools through graduate, intern and apprenticeship programmes
to support our future talent.
• Introduction of our new performance management system to support our people managers and employees
through our annual performance cycle.
• A global network of Mental Health First Aiders, and a global wellbeing and employee assistance programme is
offered 24/7 in all local languages.
• Ongoing leadership development to build our leadership capabilities
• We publish our ethnicity pay as well as our gender pay report. We have a fair pay framework covering all employees
globally and have been a real living wage employer since 2020.
• An annual employee engagement survey to develop local action plans and listen to our employees and understand
where we can make improvements.
• We have a talent review process including succession planning to identify talent around the business with oversight
from the Board.
• The Rotork Benevolent Support Fund offers support to employees and ex-employees and their families facing hardship.
Risk appetite statement
We will invest in ensuring that we have the right people, with the right skills to deliver our strategy. This will include
ensuring that we maintain appropriate succession plans and develop and attract the right talent.
Focus for 2025
• Continue to evolve our culture and employee value proposition.
• Further development of Rotork's approach to talent and performance management.
• Launch our global people manager development programmes to support our culture and underpin key behaviours
within our business.
Strategy key : Target segments Customer value Innovative products & services Trend key: Increasing Unchanged Decreasing
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Product quality and reliability Resilience
7. Major in-field product failure
Risk owner: Operations Excellence Director & Chief Technology Officer
Link to strategy Link to viability scenario Likelihood Impact Trend
3. Loss of profitability
Low Medium
Description
Major in-field failure of a new or existing Rotork product potentially leading to a product recall, major on-site warranty
programme or the loss of an existing or potential customer.
Update
This risk is unchanged since last year. Rotork is committed to continue working with suppliers to drive quality and to
continually improve manufacturing processes that minimise the risk of in-field product failures.
Key mitigating actions
• An established product design review process pre-launch, using Rotork’s extensive product launch experience.
• Fitting and commissioning products wherever possible by Rotork engineers to ensure correct operation when
firstused.
• Comprehensive set of quality control procedures over suppliers. These include supplier visits, audits and a scorecard
system to measure their performance.
• Global service coverage ensures that any product failure issues will be dealt with quickly and efficiently to minimise
any reputational impact.
• Intelligent Asset Management (iAM) analytics provide actionable insight into valve conditions and help select
appropriate maintenance strategies.
Risk appetite statement
We will maintain robust quality control procedures over components purchased and over our finished products in all
ofour manufacturing locations.
Focus for 2025
Alongside the continuation of our existing key mitigating actions we will:
• Continue to improve the quality procedures throughout the product lifecycle.
8. Supply chain disruption
Risk owner: Operations Excellence Director
Link to strategy Link to viability scenario Likelihood Impact Trend
1. Revenue decline
2. One-off costs
Medium Medium
Description
Supply chain disruption which may arise such as a tooling failure at a key supplier, logistics issues, severe weather
events impacting key suppliers which would cause disruption to manufacturing at a Rotork factory.
Update
Rotork continued to see improvements in the availability of key components and less uncertainty within our supply
chains. As a result of this we reduced our supply chain disruption risk. We continue to forecast our component
requirements and proactively work with our supply chain partners.
Key mitigating actions
• Dual sourcing for key components wherever possible provides mitigation for key suppliers or a tooling failure.
• A key risk indicator measures single sourced critical components and is reported quarterly to the Board.
• Maintaining safety stock levels sufficient to protect against short-term disruption.
• Regular monitoring and replacement of our tooling at all suppliers reduces the risk of a tooling failure.
• Identification of our critical suppliers and components, and improvements in supply.
• Supply chain due diligence and monitoring of supplier quality.
• Strengthening of our risk monitoring processes, including the ways we identify and respond to early warning
signsof potential supplier failure.
• Building tactical inventories and increasing direct purchasing of key components.
Risk appetite statement
We will manage any disruption to our supply chain utilising a range of strategies dependent on the component and
risk. We will focus our mitigations on critical components and will consider geopolitical factors in decision making.
Weexpect our suppliers to adhere to our Supplier Code of Conduct.
Focus for 2025
Alongside the continuation of our existing key mitigating actions we will:
• Develop our cost engineering strategy focused on key risk areas.
• Review our geographical supply chain risk and supplier base.
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Strategy key : Target segments Customer value Innovative products & services Trend key: Increasing Unchanged Decreasing
Resilience continued
Change management
9. Critical IT system failure and cybersecurity
Risk owner: Chief Information Officer
Link to strategy Link to viability scenario Likelihood Impact Trend
1. Revenue decline
2. One-off costs
Medium High
Description
Failure to provide, maintain and update the systems and infrastructure required by the Rotork business. Failure to protect
Rotork operations, sensitive or commercial data, technical specifications and financial information from cybercrime.
Update
This risk is unchanged from last year. The Group continues to invest in risk mitigation and preventative controls.
Cyberrisk continues to evolve, and the risks associated with artificial intelligence have been considered, moving from
our emerging risks. Threat intelligence and patching plays a key role in the mitigation of this risk.
Key mitigating actions
• Established security controls, policies and procedures.
• Dedicated security team using monitoring and defence tools.
• Third party cyber maturity assessments performed regularly.
• Continuously raising cybersecurity awareness through regular training and simulated phishing attacks.
• All new IT services are designed with a ‘cloud first’ approach to improve security, resilience and availability.
• All IT services are patched in accordance with vendor support contracts and external advice.
• A disaster recovery solution (supported by third party service level agreements) is in place for all critical systems.
• Increased security and authentication controls implemented for all IT users.
• Key risk indicators and cybersecurity updates are reported to the Board.
Risk appetite statement
We will continue to review current external and internal cyber threats and respond to them to ensure that we have
appropriate technology processes and controls in place.
Focus for 2025
Alongside the continuation of our existing key mitigating actions we will:
• Drive the execution of our cybersecurity strategy in full alignment with internationally recognised standards,
strengthening protection, resilience and recovery against an increasingly complex and evolving threat landscape.
• Continue to deliver our obsolescence plan, focusing on proactively replacing and upgrading key infrastructure
components and upgrading of all user devices to maintain confidentiality, integrity, and availability of our data
andservices.
10. Business change management
Risk owner: Business Transformation Director
Link to strategy Link to viability scenario Likelihood Impact Trend
1. Revenue decline
2. One-off costs
3. Loss of profitability
Low Medium
Description
The delivery of our strategic initiatives relies upon our ability to deliver a series of key change programmes without
causing business disruption or having a negative impact to our day-to-day operations.
Update
This risk is reported as decreasing due to the increase in maturity of the mitigating actions to deliver our various
Growth+ programmes. This risk tracks the key change programmes underway in Rotork, such as the global roll-out
ofan ERP system, as the management team is focused on the delivery of the key aspects of our Growth+ strategy.
Key mitigating actions
• A dedicated function was established to focus on delivery of our key change programmes spanning finance,
ITandcommercial.
• A dedicated project management office is in place to manage key deliverables with a mix of both operational
andspecific project management experience.
• Outcomes are monitored and tracked against the initial objectives of each initiative.
• Metrics are in place to indicate and manage any impact on day-to-day operations.
• Regular governance forums are in place to report on risks and deal with issues in a timely manner.
• A resource model is in place to deliver Growth+.
Risk appetite statement
We will ensure that our change management capacity is sufficient to implement our strategy and that the business
decisions do not negatively influence our day-to-day business.
Focus for 2025
• Deliver customer value and innovative products and services.
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Assessment of Prospects
The Group’s Growth+ strategy (see pages 17
to23) and principal risks (see pages 70 to 77)
are well documented. The Group works closely
with its customers who have projects ranging
from several weeks to several years, discussing
operational plans and their longer-term capital
expenditure programmes.
Whilst the Board has no reason to believe the
Group will not be viable over a longer period,
the directors have assessed the viability of the
Group over a three-year period taking account
of the Group’s current position and the potential
impact of the principal risks.
Three years is considered an appropriate period
over which a reasonable expectation of the
Group’s longer-term viability can be evaluated
and is aligned with our planning horizon at both
Group and divisional level. The Board has considered
whether it is aware of any specific relevant
factors beyond the three-year horizon and
confirmed that there are none.
Assessment of Viability
A robust assessment of the principal and
emerging risks facing the business was
conducted through the year with the review of
the risk appetite framework and risk dashboards
contributing to a fuller consideration of those
risks which might impact the business model
orfuture performance. The directors have
considered each of the remaining principal risks,
individually and some in combination, and the
potential impact they could have in severe but
plausible scenarios. The scenarios contained
significant one-off financial shocks and
significant profit erosion impacting the Group’s
revenue. In particular, the scenarios cover different
potential impacts associated with geopolitical
instability, disruption to supply chain or to
logistics, whatever the source of that disruption,
increasing political protectionism inrespect of
trade tariffs and lower investment in the oil and
gas markets. These events occurring individually
or at once have been considered in the
modelling of the different scenarios.
Financial scenario modelling was carried out to
assess the impact of these risks on the Group’s
three-year plan, including a reverse stress test.
Assumptions were made concerning market
activity levels, the impact of the scenarios on
working capital cycles and the mitigating actions
that could be taken to reduce the cash and
financial impact of the stress-test scenarios.
Further mitigating actions not modelled that
could be taken if needed include curtailment
ofdividends or capital asset investment.
In coming to this view, the Board has considered
the current level of geopolitical instability, inherent
volatility in exchange rates and oil and other
commodity prices, the current inflationary
environment, and the nature of the industry
andthe business cycles involved.
Given the current position of the Group and
thelikely effectiveness of any mitigating actions,
the Board has assessed the impact these would
have on the business model, future performance,
solvency and liquidity over the period and have
areasonable expectation that the Group will
beable to continue in operation and meet its
liabilities as they fall due over a three-year period.
Scenario modelled Link to principal risks
Scenario 1: Revenue decline.
• 4% decline in revenue by year three.
• The Board considered events that would result in a
gradual erosion of revenue and gross margin which
would ultimately reduce operating cash generation.
• Geopolitical instability
• Increased competition
• Major in-field failure
• Climate commitments
• Critical IT system failure and cybersecurity
• Business change management
• Supply chain disruption
Scenario 2: One-off costs and no revenue growth.
• £50m one-off costs in year one and no growth
inrevenue from current levels.
• Impact of a one-off cost due to a specific issue,
accompanied by a reduction or downturn in
forecast revenue due to an interruption to
production, supply chain disruption or disruption
to a specific end market.
• Geopolitical instability
• Supply chain disruption
• Increased competition
• Health & Safety
• Compliance with laws and regulation
• Major in-field product failure
• Business change management
• Climate commitments
• People
• Critical IT system failure and cybersecurity
Scenario 3: One-off costs and revenue decline.
• £50m one-off costs in year one and a 12%
declinein revenue by year three.
• One-off cash costs as a result of a specific issue
and a permanent loss of subsequent profitability
which affects operating cash generation.
• Geopolitical instability
• Major in-field product failure
• Business change management
• Climate commitments
Scenario 4: Reverse Stress Test.
• £100m one-off costs in year one and a 14%
decline in revenue from 2024 by year three.
• There is no reasonably possible scenario that would
lead to the conditions modelled in the reverse
stress test.
• Multiple concurrent risks
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Viability statement Strategic report Corporate governance Financial statements
2024 TCFD Report Governance
Introduction
The following sections report on our implementation of the recommendations of the Task Force on
Climate-related Financial Disclosures. We support the purpose of TCFD, to standardise climate-related
disclosures that will enable financial and other partners to gain a clear view of which companies will
endure or even flourish as the environment changes, regulations evolve, new technologies emerge
and customer behaviour shifts. Better information about climate risks and opportunities will then
also flow into companies’ risk management and strategic planning processes. As this occurs, companies’
and investors’ understanding of the financial implications associated with climate change will grow,
empowering the markets to channel investment to sustainable and resilient solutions, opportunities,
and business models.
TCFD and CFD Statement of Compliance
Rotork is disclosing in accordance with the Financial Conduct Authority (FCA) UK Listing Rule
6.6.6R(8) and the Companies (Strategic Report)(Climate-related Financial Disclosure) Regulations
2022. The main disclosures are set out here, within the TCFD report, on pages 79 to 85.
Thereareadditional disclosures on pages 41 to 47 and 52 to 56. Of the TCFD’s 11 disclosure
recommendations, we are compliant with ten, and we explain the status of the remaining
recommendation below.
TCFD recommendation Status
Strategy
(b) Describe the impact of climate-related
risks and opportunities on the organisation’s
businesses, strategy and financial planning
To fully align with this recommendation, the reporting
company must publish a transition plan. As transition
plans are also an anticipated requirement of forthcoming
reporting regulations, Rotork has decided to delay the
drafting of the formal document until the respective
requirements for these schemes have been published.
However, Rotork already discloses many of the likely
requirements including its greenhouse gas emissions,
progress against science-based targets, TCFD scenario
analysis results, and climate-related remuneration target.
Recommendation (a): the Board’s
oversight of climate-related risk
andopportunities
Strategy
The Board supports the ongoing development of
Rotork’s business strategy. This year, the Board
has been particularly focused on the roadmap
toachieving our scope 1 and 2 reduction target
and future ESG reporting requirements.
Performance
The Board monitors the Group’s performance
against five key financial and two non-financial
performance indicators, including the reduction
in scope 1 and 2 emissions. Performance against
these measures is evaluated by the Board, the
Safety and Sustainability (S&S) Committee and
Remuneration Committee. The Audit Committee
retains oversight of the assurance of the
reporting and disclosures of relevant
sustainability data.
Updates: the Board met regularly during theyear
and received updates from the S&S Committee
Chair following each S&S Committee meeting.
Each update included coverage of climate-related
matters. The S&S Committee met three times
during the year and received regular reports
from our CEO and wider senior management
onthe Group’s progress towards science-based
emissions reduction targets and the related
long-term incentive targets, which underpin our
ultimate net-zero commitment. In2024, each
S&S Committee meeting included climate-related
matters (see the S&S Committee Report on
page117 for further details); these updates are
prepared by the ESG, HSE andGroup Supply
Chain teams.
Climate risk assessment: the Board reviews and
assesses current and emerging climate and
environment-related risks at Group Risk Review
meetings held twice a year. The Board provides a
top-down view of climate risks and assesses how
risks are being responded to by management.
Recommendation (b): management
team’s role in assessing and managing
climate-related risks and opportunities
As part of the overall risk management process,
management reviews and assesses current and
emerging climate and environment-related risks
at Group Risk Review meetings held twice a
year. The outcomes of these assessments are
reported to the Board.
Targets: climate strategy and targets are
proposed by the Rotork Management Board,
with support from the ESG and Sustainability
team, and are approved by the S&S Committee
and the Board. Our science-based greenhouse
gas (GHG) emissions reduction targets cover
scopes 1,2and 3.
Remuneration: in 2024, remuneration from ESG
performance metrics included a scope 1 and 2
emissions reduction measure in the LTIP. The
2025 LTIP includes a further scope 1 and 2
reduction measure.
Individuals
• Chief Executive Officer: responsible for
overseeing integration of climate considerations
within the corporate strategy and M&A-related
activity and reports directly to the Board.
• Chief Financial Officer: responsible for climate
reporting and compliance with disclosure
requirements.
• Chief Technical Officer: responsible for
realising product efficiency opportunities
within new product development and
overseeing continuous improvement and
innovation in product design to manage
ourdemand on resources and limit our
environmental impact.
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Governance continued
Strategy
Recommendation (b): management
team’s role in assessing and managing
climate-related risks and opportunities
continued
Individuals continued
• Operations Excellence Director: responsible
for the HSE and global supply chain teams,
which respectively i) oversee the implementation
of environmental and energy efficiency
projects at our manufacturing sites to deliver
energy, waste and water reduction targets,
and ii) oversee emissions reduction
opportunities in the upstream value chain,
including engaging with suppliers to set
science-based targets.
• Other members of the management team:
responsible for supporting the individuals
above and meeting their own emissions
reduction mandates. For example, our Chief
Human Resources Officer is responsible for
the development and implementation of our
fleet strategy to reduce associated emissions.
The management team is led by our CEO.
Teams
• ESG team: responsible for developing the ESG
and climate strategy and delivering related
communications and reports. Reporting to
the Chief Financial Officer, itsresponsibilities
also include (i) monitoring and addressing
stakeholder expectations inrelation to
climate issues, (ii) monitoring broader ESG
and climate-related policy developments,
and(iii) monitoring our exposure to
climate-related risks and opportunities
toensure awareness of themanagement
team and tomeet disclosure requirements.
• Health, Safety and Environment (HSE) team:
responsible for setting and adhering to
environmental standards for our operations
and collating environmental performance
data. Reporting to the Operations Excellence
Director, it is also responsible for overseeing
the implementation of the operational
components of the climate strategy set
bytheBoard.
• Global Supply Chain team: responsible for
supplier engagement on climate issues and
engaging suppliers to set science-based
targets. Reporting to the Operations
Excellence Director, the team is additionally
responsible for analysing and responding to
ESG risks and opportunities in our supply
base, including climate-related risks.
Recommendation (a): climate-related
risks and opportunities over the short,
medium and long-term
Our approach to scenario analysis
Over 2021-23, Rotork undertook an initial set of
scenario analyses. The physical risk assessment
modelled risks to our four largest assembly facilities
using the IPCC Shared Socioeconomic Pathways
(SSPs), and the transition risk assessment modelled
scenarios with data from the Network for Greening
the Financial System (NGFS) and the IEA World
Energy Outlook (WEO).
In 2024, we engaged specialists from the Marsh
Climate and Sustainability team to refresh our
quantitative climate scenario analyses. Our latest
physical risk assessment includes all Rotork
facilities in an initial risk screening to identify
facilities with potential exposure to climatic
hazards, and all assembly facilities were included
in the subsequent scenario analysis risk modelling.
Our latest transition risk assessment uses two
NGFS transition scenarios, incorporating findings
from the previous analyses.
Quantification of financial impacts
The physical risk modelling quantified the
annualimpact on net profit of future climate
scenarios against a 2020 baseline for property
damage (before any insurance coverage) and
productivity loss.
The transition risk modelling included
quantification of direct greenhouse gas
emissions costs (annual impact on net profit).
The transition opportunity modelling quantified
the incremental revenue from new market
opportunities (net present value for the
period2024–2050).
Time horizons
Our scenario analyses assess physical climate
risks using modelled timeframes of 2020–2100
(by decade) and transition risks for 2025–2050
(at 2025, 2030 and 2050).
These analyses align with our enterprise risk
management timeframes:
• Short-term (0–5 years): The five-year
timeframe aligns with our five-year strategy
andrelated strategic planning.
• Medium-term (5–10 years): The 10-year
timeframe aligns with our approach to
innovation and service development.
• Long-term (10–25 years): The 25-year
timeframe aligns with (i) the timeframe we
apply in macro and megatrend risk scenarios,
see pages 4 to 5, and (ii) our net-zero
targettimeframes.
The scenarios and their parameters
Physical risk scenarios
IPCC RCP 2.6 is a low-emissions scenario where
global warming is likely limited to below 2°C.
IPCC RCP 8.5 is a high-emissions scenario where
global warming may exceed 4°C.
Global average temperatures across these two
scenarios are not expected to diverge until
c.2040. Climate risk was modelled using the
XDIclimate model, which assesses the risk of
physical damage and operational disruption
posed by natural hazards. The model does not
incorporate site-specific protections.
Physical risks assessed
(i) Surface water flooding, (ii) Riverine flooding,
(iii) Coastal inundation, (iv) Soil movement,
(v) Extreme wind, (vi) Forest fire, (vii) Freeze
thaw, (viii) Extreme heat.
Transition risk scenarios
NGFS Net Zero 2050: a high-ambition
scenariowhich limits global warming to
1.5°C,achieving net-zero by 2050 through
significant, coordinated global climate
policiesand cross-sectoral innovation.
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Recommendation (a): climate-related risks and opportunities overtheshort,
medium and long-term continued
Our approach to scenario analysis continued
The scenarios and their parameters continued
Transition risk scenarios continued
NGFS Fragmented World: a scenario with delayed, unaligned climate policies, resulting in 2.4°C
ofwarming and significant exposure to both physical and transition risks. Countries with net-zero
targets achieve 80% of ambition and those without continue current policies. This scenario was
chosen for comparison as it is more reflective of the current policy environment.
Transition risk and opportunity categories assessed
(i) Carbon pricing, (ii) Energy technology (transition-related costs), (iii) Market shifts, (iv) Reputation,
(v) Liability, (vi) Investor sentiment
Determining climate-related materiality
A substantive financial or strategic impact on our business is defined by our risk management
process as:
• Financial: effect on net profit of >£8m and a probability of occurrence above >25%.
• Strategic: an event in the future that may limit our ability to deliver against our strategic goals.
Climate risks and opportunities
Physical risks
ID Impact Description Category Financial impact in 2050
Scope of
assessment Risk management
R1 Increased risk of property
damage from climate-
related natural hazards
atour operational sites
Losses from physical damage to
Rotork sites. The modelled impact
ismodest. Site-specific protections
are not considered by the model.
Acute
andchronic
RCP 2.6
(2°C warming)
RCP 8.5
(4°C warming)
100% of
global sites
• Rotork assets are insured against natural
hazards and business interruption.
• Asset-specific business continuity plans are in
place. Our largest operations are in the UK,
China, USA and Italy.
R2 Increased risk of productivity
loss from climate-related
natural hazards atour
operationalsites
Losses from downtime days at
Rotork sites. The modelled impact
is modest. Site-specific protections
are not considered by the model.
Acute
andchronic
RCP 2.6
(2°C warming)
RCP 8.5
(4°C warming)
100% of
global sites
Transition risks
ID Impact Description Category Financial impact in 2050
Scope of
assessment Risk management
R3 Direct GHG
emissions costs
Additional costs from carbon taxes
and fees on scope 1 and 2 emissions.
Policy
andlegal
Net Zero 2050
Fragmented World
100% of
global sites
• Rotork is proactively reducing scope 1 and 2
emissions and has nearly achieved its 2030
science-based reduction target.
R4 Reputation and
perception risk
Effect of investors' and customers'
perception of the sustainability
ofRotork's business, operations
and products.
Reputation Qualitative analysis Group level
• Reputational risk is evaluated as part of the
Group risk management process.
• Rotork regularly engages with its stakeholders.
Impact thresholds (key): Negative exposure: <£3m £3–5m £5–10m £10–20m >£20m
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Recommendation (a): climate-related risks and opportunities overtheshort,
medium and long-term continued
Climate risks and opportunities continued
Practical limitations when quantifying future risks
Please note that these quantifications are forward-looking projections which can only provide
anindicative value at risk. Physical risk values are based on place-based assumptions concerning
likelihood, magnitude and asset vulnerability which vary between future climate scenarios.
2024 updates to transition risk disclosure
• Indirect GHG emissions costs (change in our energy costs): when reassessed in the 2024 analysis
(as part of the ‘Energy technology’ assessment), these costs are not projected to be material.
• Indirect GHG emissions costs (policy & legal): While the impact of CBAM schemes was considered
in this analysis, Rotork’s exposure is not currently assessed to be material.
Transition opportunities
ID Impact Description Category Revenue impact (NPV)
Scope of
assessment Opportunity management
O1 Incremental revenue from
new market opportunities
Decarbonisation activities offer
increased demand for Rotork
products in key transitional
sectorsincluding:
• CCUS
• Battery storage
• Hydrogen
Markets
Net Zero 2050
Fragmented World
Global • As part of our Growth+ strategy, we have
identified Target Segments where we see
significant profitable growth opportunity
(including decarbonisation and HVAC) and
have established business development teams
to secure these opportunities.
Impact thresholds (key): Positive exposure: <£3m >£20m
2024 updates to opportunity disclosure
• Avoided risk from mitigation: in the previous analysis, the cost savings from scope 1 and 2 emissions reductions were noted as a potentially material opportunity. While we remain fully committed to
ournet-zero and carbon reduction targets, the latest 2024 analysis found that – as an organisation with relatively low operational emissions – the financial savings from these reduction initiatives do not
meet our materiality thresholds.
Recommendation (b): the impact of climate related risks and opportunities on
businesses, strategy, and financial planning
Integration into financial planning
The opportunities and risks (net of any insurance cover) of climate change are integrated into our
financial planning, to the extent that the likelihood of occurrence is probable.
• The expected cost of taxes (including environmental taxes), energy and capital expenditure
(including energy-saving and renewable energy projects) are incorporated into our
budgetingprocess.
• The revenue and anticipated revenue from our eco-transition portfolio factors into our financial
forecasts, including climate-related opportunities like oil and gas customers purchasing electric
actuators as part of decarbonising upstream operations.
• As part of our budgeting process, we incorporate the cost of performing risk assessments and
undertake mitigations to reduce the impact of physical risks. We purchase insurance to further
mitigate the risk of property damage from extreme weather events.
• Reputational risk is managed through our ‘climate commitments’ principal risk (p. 75), which is
incorporated within our viability assessments.
The viability assessment (p. 78) considers risks where the likelihood of risk occurrence is more
remote. The likelihood of risks occurring is monitored through our Group risk management process.
Incorporation into business strategy
Our 'enabling a sustainable future' initiative underpins the Growth+ strategy. To monitor transitional
opportunities, we began reporting on our eco-transition portfolio in 2021.
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Risk management
Recommendation (a): identifying and assessing climate-related risks
Risk management framework
Climate-related risks and opportunities are assessed and managed using the Group’s overarching
riskmanagement framework (see pages 67 to 69 for more information). Our established risk
management framework incorporates both ‘bottom-up’ and a ‘top-down’ risk identification and
review processes. The bottom-up process is carried out at functional, divisional and regional levels
and the top-down process is performed at the management and Board level.
Horizon risk methodology
For many climate-related risks, either the severity of the impact or the likelihood may be uncertain,
and typically these risks may materialise over longer-term time horizons than more traditional
business risks. To account for this, we use a ‘horizon risk methodology’ to assess those risks that
aremore uncertain or intangible, such as climate change. This uses a wider timeframe than typically
used, with short term as 0–10 years, medium term as 10–25 years and long term as 25 years
andbeyond.
Climate risk identification
Climate-related risks are identified, monitored and managed through risk workshops held with
allkey functions at least twice a year. Since 2022, in addition to the established risk management
process, additional cross-function workshops were convened to identify and contextualise
climate-related risks and opportunities that affect different functions. The potential impacts
werediscussed and ranked based on perceived business importance.
Climate risk assessment
In accordance with the TCFD recommendations, our assessment primarily focused on understanding
the potential financial impact of these risks. To achieve this, each transition and physical climate risk
or opportunity has been qualitatively assessed and scored based on the potential financial impact.
The level of potential financial impact is a function of three criteria including vulnerability (consisting
of level of exposure, sensitivity and adaptive capacity), likelihood and magnitude. We also assessed
opportunities in terms of the size of opportunity and ability to execute. The risk and opportunity
assessment results were used to inform the next stage of the climate risk assessment – the
quantification of potential financial impact for some of the most material risks.
We currently define financial materiality as affecting net profit by over £8m and probability greater
than 25%. This will be used to inform the continued development of risk management responses
forincorporation into our Climate Transition Plan.
Recommendation (b): the impact of climate-related risks and opportunities on
businesses, strategy, and financial planning continued
Incorporation into business strategy continued
The role Rotork can play in a green economy and a cleaner, more sustainable future featured
highlyinour recent materiality assessments. Our products can enable the transition to a low-carbon
world, with applications in low-carbon fuels, hydrogen, carbon capture, usage and storage, and
battery materials.
In addition, there are considerable opportunities to assist our oil and gas customers in delivering
against their ambitious net-zero commitments, including through providing products and services
that deliver reliable, energy-efficient solutions that minimise environmental impacts (for example,
through lower emissions, energy consumption and water usage). Similar opportunities present
themselves in the power, water and industrial markets. Our products have applications in the rollout
and modernisation of critical infrastructure. Water scarcity is resulting in a greater need for recycling
and desalination, and rising sea levels are necessitating flood defence investment.
Case studies illustrating the role we can play are set out on pages 52 to 56.
Recommendation (c): the climate resilience of our strategy
The scenario analysis indicates that Rotork is resilient to both the transition to a low-carbon economy
and to the more frequent, severe weather events that would accompany climate scenarios with
greater levels of warming. Our continued progress against our science-based scope 1 and 2 target
demonstrates our ability to manage the risk of future carbon taxes. Likewise, the risk of disruption
from climate-related natural hazards is assessed as 'low' with management procedures in place.
Likewise, through our ability to supply technologies that enable the transition – including hydrogen
production and electrification of oil and gas operations – we are positioned to benefit from the
transition to a 2°C scenario. For further examples of our products’ use in low-carbon technologies,
see pages 52 to 56.
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Recommendation (b): managing climate-related risks
Risk control and management
When risks are identified, a risk owner is assigned who is accountable for monitoring and managing
the risk. In some cases, climate-related risks identified may already sit as risk drivers to an existing risk.
Where a new response is required to manage a risk, an action owner is assigned who is accountable
for the delivery of the action, with support from the Risk and Compliance team. An appropriate
action could be to perform further analysis, to put in place controls and mitigations, or to address
the risk by identifying other opportunities.
Recommendation (c): how identifying, assessing and managing climate-related
risks are integrated into enterprise risk management
The Board is responsible for determining the nature and extent of the risks it is willing to take in
achieving our strategic objectives. Our Group risk appetite statement sets the tone from the top and
supports decision making to mitigate, control or accept risks. Rotork’s purpose, ‘keeping the world
flowing for future generations’, is embedded in the way we assess risks.
The Board considers climate issues in strategic and financial planning throughout the year; however,
a formal review process is conducted twice yearly. It is assisted in the assessment of climate-related
matters by the S&S Committee, the Audit Committee, and the Rotork Management Board.
Our Group risk management process reviews those risks that could have an immediate or longer-term
impact. One of our principal risks is ‘Climate Commitments’. Our Climate Commitments risk is driven
by the Group’s commitment to enable a sustainable future, and our understanding of the challenges
that are posed in delivering our targets, both internally and externally to align with the climate
science. Sustainability is a key pillar of our strategy, and we are well-positioned to support the
transition to a low-carbon economy and sustainable future. This is further outlined in our Growth+
strategy on page 17. We recognise that as a company we must live up to our promises and deliver
onthe targets we have set. This risk demonstrates that we understand that operating responsibly
isimportant for Rotork and our stakeholders. For more information see pages 106 to 111.
Climate-related risks and response options are managed using the Group’s Risk Management
Framework which incorporates both a bottom-up and top-down assessment. Climate change is a
standing agenda item at risk workshops held at least twice a year. Given the unique characteristics
ofclimate-related risks, we use our horizon risk methodology to assess risks against longer-term time
horizons relevant to climate change. Risk owners are assigned to the most material risks and appropriate
control measures are decided based on the perceived materiality and the agreed risk appetite.
Recommendation (a): climate risk and opportunity metrics
For Rotork’s 2024 update on sustainability performance, please see the Sustainability Review on
pages 34 to 66.
ID Risk Metric 2024 2023 2022
R1 Property damage
Number of
natural
catastrophe
events resulting
in a significant
financial impact
— — —
R2 Operational
disruption
R3 Direct GHG
emissions costs
Scope 1 and 2
emissions (tonnes,
marketbased)
5,877 6,310 7,052
R4 Reputation and
perception risk
MSCI ESG rating
AAA AAA AA
ID Opportunity Metric 2024 2023 2022
O1 Incremental
revenue from
new market
opportunities
% revenue from
eco-transition
portfolio
1
30% 30% 28%
1 Our ‘eco-transition portfolio’ includes: ‘Water & wastewater’, ‘Methane emissions reduction’ and‘New energies & technologies'.
These include products and services that (i) reduce (if not eliminate) methane emissions through the electrification of the
upstream oil & gas sector, (ii) enable the energy transition through applications in LNG, carbon capture and storage, biofuels,
hydrogen and offshore wind, and (iii) manage water and wastewater distribution and treatment.
Metrics and targets
Risk management continued
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Metrics and targets continued
Recommendation (b): scope 1, 2 and 3 greenhouse gas emissions and
relatedrisks
Our full Streamlined Energy and Carbon Reporting (SECR) disclosure is available on pages 41 to 42.
Recommendation (c): climate-related targets
Rotork is committed to net-zero for scope 1 and 2 by 2035 and for scope 3 by 2045. Our near-term
emissions reduction targets for scope 1, 2 and 3 emissions have been validated by the SBTi. The baseline
year for all targets is 2020.
Rotork set a market-based target to reduce scope 1 and 2 emissions by 42% by 2030 compared with
2020. This is an absolute reduction target, aligned to a 1.5ºC pathway. Market-based emissions are
reported on page 41, and Rotork aims to achieve our target through renewable energy procurement,
use of on-site solar photovoltaic generation, energy efficiency projects across our estate and our
fleet emissions reduction strategy. We are currently on track to achieve this target, with a 37%
emissions reduction in 2024 versus our 2020 baseline.
For scope 3, Rotork also set an absolute reduction target for emissions associated with the use of
sold products. Our target is to reduce emissions by 25% by 2030, in line with a well-below 2ºC
pathway. We will achieve this target through incorporating energy performance improvements into
the new product development process and through assessing energy saving opportunities of existing
products. Our ambition will also be supported by the progressive ‘greening of the grid’, as over time
our products will be powered by an increasing proportion of renewable energy during their use.
Weare on track with programme delivery, see further details on page 45.
In addition, we have set a supplier engagement target for emissions associated with purchased
goods and services. We are engaging with suppliers representing 25% of supply chain emissions
toset science-based targets by 2027, see further details on page 47.
In 2023, 2024 and 2025, the executive LTIP awards include a measure targeting reductions in scope
1and 2 emissions.
GHG emissions Tonnes CO
2
e (2024) Associated climate-related risks
Scope 1
Scope 2
(market-based)
3,533
2,344
(Limited assurance)
• Direct GHG emissions costs
Scope 3
70,861
Purchased goods
andservices
253,939
Products in use
17,153
Rest of scope 3 categories
Total GHG emissions
347,830
347,830
2024 GHGemissions
(tCO
2
e)
341,953
2024 Scope3
emissions (tCO
2
e)
Scope 1
Scope 2
Scope 3
Purchased goods and services
Products in use
Rest of scope 3 categories
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The Non-Financial Reporting Requirements in Sections 414A and 414CB of the Companies Act 2006 are addressed in this
statement using cross references to indicate pertinent sections within this report
This report refers to a range of policies that support our performance across Environment, Social and Governance topics.
ESG policies are located on our website: www.rotork.com/en/environmental-social-governance/esg-reports-and-policies.
Environmental information
Where material information can be found in the strategic report Material policies How we monitor the effectiveness of policies
Our approach to managing our environmental impacts is set out
onpages 34 to 66. Our TCFD report, prepared in accordance with
UKListing Rule 6.6.6R(8) and the Companies (Strategic Report)
(Climate-related Financial Disclosure) Regulations 2022, is set out on
pages 79 to 85. We work to measure and reduce our environmental
impact and report progress inour Annual Report, and in our separately
published GRI table.
Environmental Policy
This sets out our commitment to protecting the environment,
ecosystems and biodiversity; continually improving our
environmental and energy performance; and complying with
all applicable environmental and energy regulations. It applies
to the whole Group,including subsidiaries.
We measure performance against key environmental
metrics and report this publicly. We also include environmental
obligations in our agreements withsuppliers and monitor
performance. See the non-financial performance KPIs on
page 15 for the reductions in scope 1 and 2 emissions
in2024 versus our 2020 baseline.
The Company’s employees
Where material information is located Material policies How we monitor the effectiveness of policies
Our approach to People and Culture is set out on pages 58 to 61.
Ouremployee engagement approach is also covered in our Section
172(1) statement on pages 106 to 111 and our workforce engagement
section on pages 112 and 113. Related principal risks, on pages 70
to77, are Health & Safety, People and Business Change Management.
Board Diversity & Inclusion Policy
Sets out the Board’s approach to diversity and inclusion and
provides the framework for the Board’s approach to diversity
and inclusion in senior management roles.
Code of Conduct
Our Code, together with our values, sets out the standards of
behaviour we expect of our employees and provides guidance
about how to make ethical decisions.
Health & Safety Policy
Sets out our commitment to the planning and management
ofhealth and safety for reducing accidents and cases of
work-related ill-health. It applies Group-wide, including
toallour subsidiaries and persons working for or onbehalf
ofthe Company.
Speak Up Policy
Outlines our commitment to conducting our business with
openness, integrity and fairness, and encouraging people to
report suspected wrongdoing as soon as possible and without
fear of detrimental treatment as a result of raising a concern.
It applies to all individuals working within, for, or with Rotork,
including suppliers.
Our regular employee engagement assesses employees’
engagement and their views of Rotork as a place towork.
Surveys include questions on diversity and inclusion and
the pace of change. We conduct regular audits of our
health and safety system. We track colleague diversity at
different levels within the organisation, reviewing gender,
ethnic and age diversity among others. We also monitor
the number of contacts made through our whistleblowing
linesand the outcomes of any investigations. The Total
Recordable Incident Rate (TRIR) is one of our two key
non-financial performance indicators. Performance in 2024
and trends over time are set out on page 40.
Our Annual Confirmation Statement process, launched in
January each year, requires employees to confirm that they
have read the Code of Conduct and associated policies,
completed any mandatory training and declare any
conflicts of interest.
Rotork Annual Report 2024 rotork.com86
Strategic report Corporate governance Financial statements
Non-financial and sustainability information statement Strategic report Corporate governance Financial statements
Social and community matters
Where material information is located Material policies How we monitor the effectiveness of policies
Our contribution to the communities in which we operate,
including charitable giving, is covered on pages 62 and 63.
Ourapproach to supplier management is on pages 47 and 48
and 110 and 111.
Supplier Code of Conduct
Our Supplier Code of Conduct sets out our minimum
expectations regarding ethical behaviours and compliance with
applicable laws, including promoting equal opportunities, human
rights, freedom of association, labour rights, good environmental
practices, and our zero-tolerance approach to bribery and
corruption. It applies to all Suppliers globally and is published on
our website. Rotork also expects suppliers to apply our Code to
their own supply chains. We assess potential slavery and human
trafficking risks arising from supplier relationships using a number
of different methods. These include assessing new and existing
suppliers and conducting supplier site visits. In the event that an
issue is identified, we will undertake appropriate remedial action.
This might include placing appropriate contractual obligations on
a supplier, working together with a supplier on a corrective
action plan, or ceasing towork with a supplier altogether.
Worldwide Charity Support Policy
This policy sets out how we implement charitable giving, in
linewith our corporate responsibility aims. Every location has
authority to spend 0.1% of its prior year’s profit before tax on
charitable or good cause activities chosen by the employees of
that location.
Group Tax Strategy
Our overall tax strategy is for full disclosure and co-operation
with all tax authorities. We consider reputational, financial
andoperational risks in our approach to tax planning. We are
committed to creating an open and transparent working
relationship with tax authorities in the jurisdictions in which
weoperate, and to abiding by all applicable laws.
We capture and report data on our charitable giving and
assess the impact we have made. We audit high-risk
suppliers, as required, to ensure compliance with our
SupplierCode of Conduct.
rotork.com Rotork Annual Report 202487
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Non-financial and sustainability information statement continued Strategic report Corporate governance Financial statements
Respect for human rights
Where material information can be found in the strategic report Material policies How we monitor the effectiveness of policies
Our approach to diversity and inclusion and respect for humanrights
is covered on pages 48 to 51 and 59 to 61. OurModern Slavery
Statement is published on our Group website at www.rotork.com.
Our Code, together with our values sets out the standards of
behaviour we expect of our employees and provides guidance
abouthow to make ethical decisions. In 2024, we updated the
formatand content of our Code of Conduct and published it on
ourexternal website.
Modern Slavery Statement
Provides an update on our progress with strengthening our
modern slavery risk management framework and explains the
steps we aim to take in the coming year.
Modern Slavery Policy
Our Modern Slavery Policy provides guidance on how to
detect, prevent and report modern slavery concerns. It includes
key performance indicators to measure the effectiveness of our
control measures.
Code of Conduct
Outlines the standards of behaviour we expect from employees,
including a section covering the protection of human rights
and empowering staff to ‘Speak Up’ if they have a concern.
Respect at Work and Equality of Opportunity
Sets out our commitment to the principle of equal opportunities
to ensure that no employee or job applicant receives less
favourable treatment based on their age, race, nationality,
ethnic origin, disability, sex, sexual orientation, religion or
belief or marital status.
Conflict Minerals Policy
This policy sets out the Company’s commitment to not using
tantalum, tin, tungsten and gold that directly or indirectly
finances or benefits armed groups in the Democratic Republic
ofthe Congo, adjoiningcountries, and other conflict-affected
and high-risk areas (CAHRAs).
We deliver a range of mandatory training courses, including
Code of Conduct and Speak Up training, which include
amodule on modern slavery and human trafficking.
Wemonitor completion status and follow up with those
who have not completed training by its due date.
We also introduce new joiners to our values during
theirinduction sessions.
We review our suppliers for modern slavery risks.
Weengage an independent intelligence provider to
helpanalyse our supply base. We follow up with audits
when necessary.
We monitor the number of reports of suspected
wrongdoing received. We investigate all concerns and
analyse the outcomes for any trends or risk indicators.
We exercise due diligence based on the ‘Responsible
Minerals Initiative’ guidance, by mapping our supply chain
using their reporting templates for tantalum, tin, tungsten
and gold, andfollowing up any concerns raised via a
corrective action management process.
Rotork Annual Report 2024 rotork.com88
Non-financial and sustainability information statement continued Strategic report Corporate governance Financial statements
Anti-bribery and corruption
Where material information is located Material policies How we monitor the effectiveness of policies
Sustainability Review – culture, ethics and
governance section (pages 49 to 51),
Sustainability Review – people and culture
section (pages 58 to 63), Governance
Report (from page 90)
Code of Conduct
This sets out our zero-tolerance approach to bribery and corruption and the standards of
behaviour expected to minimise the risk of bribery, including in relation to gifts and hospitality.
Anti-bribery and Corruption Policy
We take a zero-tolerance approach to bribery and corruption. Ourpolicy and related guidance
help employees understand howbribery can impact individuals and the Company and how
toreport a potential breach.
Gifts and Hospitality Policy
Provides guidance on the rules relating to the offering and acceptance of gifts and hospitality.
Additional situational guidance and FAQs are available on our Gifts & Hospitality Sharepoint site.
Supplier Code of Conduct
Outlines our zero-tolerance policy to extortion, bribery and corruption and to offering, paying,
soliciting or accepting bribes in any form.
In addition to mandatory Code of Conduct and
Speak Up training, employees are required to
complete anti-bribery andcorruption courses on
aregular basis. We track training completion rates.
See page 49 for more information.
We investigate all concerns raised and remain alert
toriskindicators.
We have an automated approval request process.
Gifts and hospitality must be approved and recorded
in the register where they meet the approval levels
set out in the policy.
We also submit responses to the CDP Climate
and Water Security questionnaires annually.
Oursustainability reports and policies are
published at the following address: https://www.
rotork.com/en/investors/diversity-and-inclusion
and www.rotork.com/en/environmental-social-
governance/esg-reports-and-policies.
Non-financial information
Non-financial
information Section Pages
Business
model
• Business model
• Viability Statement
6–7
78
Key non-
financial
performance
indicators
• Key performance
indicators
• Sustainability Review
14–15
34–66
Information for funds applying
theSustainable Finance Disclosure
Regulation (SFDR)
Our end markets
In 2024, 47% of our sales were into Oil & Gas,
27% into Chemical, Process & Industrial and
26% into Water & Power. The most common
application of Rotork’s products and services
–across all end markets – is the control and
management of water, including for water
recovery, recycling and treatment processes.
Rotork’s products are an essential component
inprocesses for new energies and technologies
that enable climate change mitigation and
adaptation. They also contribute positively to
thesustainable use of water resources, as well
ashaving applications in flood protection.
Our ‘eco-transition portfolio’ includes three
portfolios: ‘water & wastewater’, ‘methane
emissions reduction’ and ‘new energies and
technologies portfolio’ as well as other applications
such as process water management and
gasification. We estimate that these three
portfolios represented around 30% of sales in
2024, with other applications also material but
difficult to estimate. Eco-transition portfolio
sales promote environmental or sustainability
characteristics, specifically methane emissions
elimination, water preservation, carbon capture
and new capacity renewable energy generation.
See pages 52 to 56 for case studies. For the
avoidance of doubt, Rotork does not produce
nuclear power, own fossil fuel reserves, produce
or sell tobacco or military or other weapons or
operate in the gambling sector.
Our business
• ESG ratings: Rotork is highly ranked by
numerous ESG ratings agencies, including
MSCI, Sustainalytics, S&P Global and CDP.
See page 35 for details.
• Alignment to the 2015 Paris Agreement:
Rotork has set science-based emissions
reduction targets across scopes 1 and 2 and
scope 3. We have also committed to target
net-zero by 2035 for scopes 1 and 2 and by
2045 for scope 3. See page 41 and 42 for details.
• UN 2030 Agenda for Sustainable Development:
As part of Rotork’s sustainability framework,
launched in 2021, we are targeting progress
for UN SDGs 5, 6, 7, 8, 9, 12 and 13. Rotork
was also an early signatory of the UN Global
Compact. See page 35 for details.
Further details of our ESG performance,
including on metrics such as TRIR, gender
paygap, human rights policy, anti-corruption
practices and whistleblowing are set out in the
Sustainability Review on pages 34 to 66.
Approval and signing of the Strategic Report
The Strategic Report was approved for issue by
the Board on 10 March 2025 and signed on its
behalf by:
Kiet Huynh
Chief Executive Officer
10 March 2025
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Non-financial and sustainability information statement continued Strategic report Corporate governance Financial statements
In this section
91 Chair’s governance overview
94 Board of directors
96 Governance highlights
98 Corporate governance report, including
our Section 172(1) statement
117 Safety and Sustainability
Committeereport
121 Audit Committee report
126 Nomination Committee report
131 Directors’ Remuneration report
159 Directors’ report
163 Statement of directors’ responsibilities
Corporate
governance
The Rotork Board remains
committed to the highest
standards of governance
andstakeholder engagement.
Rotork Annual Report 2024 rotork.com90
Strategic report Corporate governance Finan ial statements
Corporate governance Strategic report Corporate governance Financial statements
In a similar fashion, the Board and I were also
pleased with the progress made during 2024
onthe evolution of Rotork’s culture. My fellow
directors and I have been closely monitoring this
project and have been actively involved in
engagement with our employees, as Rotork’s
cultural DNA is evolving within the organisation.
More detail about this is set out on pages 58 to
59 and 104 to 105.
Alongside our involvement in evolving Rotork’s
culture, during the year my fellow Board members
and I engaged with Rotork’s employees during
our various site visits. We all received a warm
welcome at each site and found the opportunity
to listen to, and digest, employees’ views and
feedback highly valuable. The directors and
Iwould like tothank each of the employees
wemet for this.
Board activities in the year
A key focus for the Board this year was to
monitor the progress being made by the business
in continuing to deliver our Growth+ strategy.
Tosupport this we have reviewed, through deep
dives, our Target Segments and key markets as
well as monitoring the opportunities and risks
indepth. Our deep dives are supplemented by
adetailed update from the relevant Rotork
Management Board member at our Board
meetings. These sessions provide valuable
insightinto the opportunities and risks for
theCompany’s end markets, functions and
operations. The Target Segments approach
contained within the Growth+ strategy has
allowed us to identify new market areas and
thesuccess of this approach is evident in the
8.2% year-on-year organic constant currency
(OCC) sales growth delivered during 2024.
Sustainability remains an ongoing focus for
Rotork. The Safety and Sustainability Committee,
chaired by Andrew Heath since 1 May 2024,
maintains detailed oversight of the implementation
of Rotork’s sustainability strategy on behalf of
the Board and has kept the Board updated
during the year.
On behalf of the Board, I am
pleased to introduce Rotork’s
Corporate Governance Report
for 2024.
The aim of this report is to provide a clear
explanation of Rotork’s governance framework
and the practical application of the principles of
best practice corporate governance within the
business during the year.
Introduction
I am pleased to introduce my second report to
you as Chair of the Rotork Board. My report
describes the key activities undertaken by the
Board during 2024, within the context of our
governance arrangements. 2024 was another
successful year for the Company, as we continued
to implement the Growth+ strategy against the
backdrop of our overarching purpose and
sustainability vision to keep the world flowing
for future generations.
This purpose is a powerful motivator in all that
we do and underpins the Growth+ strategy. As
is evident within the Strategic Report set out on
pages 1 to 89, the strategy continues to deliver
positive results with strong momentum across
allthree of its strategic pillars, Target Segments,
Customer Value and Innovative Products & Services.
During 2024, the Company’s strategic ambitions
continued to be fulfilled within our strong governanc
e
framework. TheBoard and I continue to be
pleased with the extent to which Rotork is
focused on sustainability, which was clear on our
site visits during the year, in our conversations
with Rotork’s employees and at a more strategic
level within the boardroom and our discussions
as a Board, particularly during our annual off-site
strategy meeting in June 2024.
Applying the principles of the UK Corporate Governance Code 2018 (the 2018 Code)
Dorothy Thompson, CBE
Chair
“ As a Board, we consider that effective governance underpins the
successful management of the Group andenables us to focus on the
key strategic issues.”
Dorothy Thompson, CBE
Chair
rotork.com Rotork Annual Report 202491
Strategic report Corporate governance Finan ial statements
Chair’s governance overview Strategic report Corporate governance Financial statements
Board activities in the year continued
The new manufacturing facility in China was
designed with sustainability asa key priority
andthis was acknowledged bythe LEED Gold
certification it achieved. TheBoard has monitored
the progress being made to reduce the Group’s
greenhouse gas emissions in line with our
net-zero goals and has kept a keen interest in
reviewing the engagement being undertaken
with our customers and suppliers on their own
sustainability activities. Inrecognition that we
have an important role toplay in new technologies
that will support the transition to a low-carbon
economy, the Board also took time to review
how we might play ourpart through investment
in new product development in driving the
transition to a sustainable future where
resources are usedresponsibly.
As part of the Board Committee composition
changes during the year, we were keen to
ensure relevant knowledge sharing between
theCommittees asappropriate on sustainability-
related matters. Both Andrew Heath and
KarinMeurk-Harvey, who are Chair and member
respectively of our Safety and Sustainability
Committee, are also members ofour Remuneration
Committee. This assists theRemuneration
Committee during its consideration of the
sustainability targets within executive director and
senior management remuneration opportunities.
Janice Stipp, Chairof the Audit Committee, is
also now amember of the Safety and Sustainability
Committee. This link will further assist both
Committees as the business prepares for the
EUCorporate Sustainability Reporting Directive
(CSRD), the requirements of which Rotork is
expecting to be required to align with.
Following on from the achievements made in
2023, during 2024 the Board continued to focus
on oversight of the acceleration of Rotork’s
business transformation through implementing
and integrating common systems and processes
across the Group, which are supported by a
newenterprise resource planning (ERP) system.
Thistransformation will drive improved lead
The Board is always keen to understand and
respond to the views, concerns and challenges
of our people. The Board recognises that a
strong and cohesive culture underpins the
Growth+ strategy as a critical enabler for
sustainable growth, and the importance of
ensuring that the chosen culture is properly
embedded within the organisation. The Board
carefully reviewed the work underway to evolve
the Company’s culture to support its strategy.
More details about the culture initiatives,
including the engagement sessions I attended
with employees in September, are set out on
pages 104 to 105, 108 to 109 and 112 to 113.
The positive feedback received as part of these
sessions, the increased focus on bottom-up
engagement and the wider positive changes
under Kiet Huynh’s and the Rotork Management
Board’s leadership have been appreciated. The
outcomes of the enhanced employee engagement
survey undertaken during 2024 were reviewed
by the Board, alongside the initiatives being
taken by management in the areas of leadership
and talent and performance development. We
consider these critical to ensuring retention and
having motivated, well-led and productive teams
which are able todeliver the Growth+ strategy.
A summary of the key Board activities during the
year can be found on page 96 and the timeline
on page 100.
Board composition
The Nomination Committee, which I chair, keeps
the balance of skills, knowledge and experience
on the Board under regular review and is
mindful of the best practice requirements under
the UK Corporate Governance Code 2018 and
the requirements in UK Listing Rule 6.6.6R(9).
There were several changes to the Board over
the course of 2024. Whilst I was sorry to lose the
expertise of those directors who stepped down
this year, I have been delighted by the fresh
perspectives and insights brought by our new
Board members. The comprehensive induction
programmes undertaken by the directors who
times and enhanced customer experience, both
of which are important deliverables under the
Customer Value pillar of the Growth+ strategy.
The Board has been monitoring progress during
2024 and the planned deployments during 2025
andbeyond.
The Board has closely monitored innovation within
Rotork as a component of the Innovative Products
& Services pillar of the Growth+ strategy. The
Board reviewed the fully Integrated Ethernet
functionality for the IQ3 Pro range of electric
actuators, prior to their launch to market, the
modular electro-hydraulic actuators and the
newRotork website prior to its publication.
The Board regularly reviews its capital needs in
line with our disciplined capital allocation policy.
The Board’s capital deployment priorities remain
that of organic investment in the business, a
progressive dividend policy, acquisitions and a
return of cash to shareholders. The £50m share
buyback programme that was launched in
March 2024 and completed in December 2024
isillustrative of this. Alongside our intention
toundertake a further £50m share buyback
programme during 2025. With our strong
balance sheet, healthy net cash position and
good cash generation, the Board is recommending
a final dividend for 2024 of 5.0p per ordinary
share, bringing the total dividend for 2024 to
7.75p per ordinary share, a 7.6% increase on
2023. We remain active in assessing M&A
opportunities in line with our targeted M&A
strategy with the Board reviewing the M&A
strategy, pipeline and potential opportunities
throughout the year. In line with our M&A
strategy, on 10 March 2025, Rotork agreed to
acquire NOAH Actuation Co., Ltd., a leading
South Korean manufacturer of electric actuators.
Recognising the importance of understanding
the Company’s risk profile and appetite, the
Board held a number of discussions during 2024
on risk and compliance matters, with comprehensive
enterprise risk reviews including cybersecurity
and litigation risk reviews.
have joined the Board over the last year have
allowed them to get up to speed and start
actively contributing to strategic Board discussions
quickly. Further details are set out on page 128.
Jonathan Davis, who had served as Group
Finance Director since 2010, retired after
21years with the Company, formally stepping
down from the Board on 30 April 2024. During
Jonathan’s tenure, he made a very significant
contribution to the Company and the Board and
I would like to thank him for his valued efforts.
Ben Peacock was appointed as Chief Financial
Officer on 11 March 2024 and has settled in
wellsince, making a strong contribution to the
executive team, the Board and the wider business
during his inaugural year. Tim Cobbold stepped
down from the Board on 31 December 2024,
after sixyears with the Company, to become
Board Chair at Spirax Group plc.
Tim made a significant contribution to the
Boardduring his tenure, most recently in his roles
asSenior Independent Non-executive Director,
Chair of the Remuneration Committee and
designated Non-executive Director for Workforce
Engagement, and the Board and I, personally,
thank Tim for all his input. Following Tim’s
decision in May to step down from the Board
atthe end of 2024, the Nomination Committee
initiated a thorough search for a new non-executive
director during the latter part of 2024. As a
result, Svein Richard Brandtzæg was appointed
tothe Board on 20November 2024 and will
stand for election at our upcoming 2025 AGM.
Svein Richard brings with him experience gained
whilst leading a global industrial listed group and
previous non-executive roles. From 1January
2025, SveinRichard Brandtzæg succeeded Tim
as Chairof the Remuneration Committee and
became a member of the Audit Committee.
Following a search process in 2023 (led by the
Nomination Committee) Andrew Heath and
Vanessa Simms were appointed to the Board
with effect from 1 April 2024 and 21 June 2024
respectively. Andrew and Vanessa have both
brought their extensive experience in strategic
Rotork Annual Report 2024 rotork.com92
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Chair’s governance overview continued Strategic report Corporate governance Financial statements
leadership, in leading change and in delivering
organic and inorganic growth within the listed
environment to the Board since their appointments.
Andrew was appointed as Chair of the Safety
and Sustainability Committee from 1 May 2024,
as well as becoming a member of the Remuneration
and Nomination Committees. Vanessa became a
member of the Audit Committee and Safety and
Sustainability Committee from the date on which
she joined the Board. Andrew and Vanessa’s
contribution to the Board was further augmented
from 1January 2025, when Andrew succeeded
Tim Cobbold as our Senior Independent Non-executive
Director and Vanessa became our designated
Non-executive Director for Workforce Engagement.
New appointments remain subject to a formal,
rigorous and transparent process, led by the
Nomination Committee, and further details on
the procedures taken for these recent appointments
can be found on pages 127 to 128.
As I confirmed in last year’s report, Ann Christin
Andersen did not seek re-election at the Company’s
2024 AGM, retiring from the Board on 30 April
2024 in light of her appointment as CEO of
Norwegian Energy Partners. I would like to thank
Ann Christin for her contribution during her tenure.
Diversity and inclusion
Diversity, both in the boardroom and throughout
the entire Group, is taken seriously by the Board
as part of our stated commitment to nurture an
inclusive and respectful culture. The Board is
committed to ensuring that its membership
reflects diversity in its broadest sense. We believe
that in order to provide a range of perspectives,
insights and challenge in support of good decision
making and to enable achievement of strategic
objectives, a combination of skills, experience,
ethnicity, age, gender, educational and
professional background, thinking and other
personal attributes is required. The importance
of this area forms the basis for the Board’s
succession planning. You can read more about
our overall approach to diversity and inclusion
across the Group on page 60.
Stakeholders
The Board takes account of the impact of its
decisions on all our stakeholders, whether they
are our investors, customers, employees, suppliers
or the communities in which we operate, while
taking steps to secure the Group’s longer-term
success. As a trusted partner, working together
with all our stakeholders to understand their
different perspectives remains a focus for the
Board. There has been a regular two-way
dialogue with our stakeholder groups during
2024 and, on behalf of the Board, I would like to
thank them for their partnership during the year.
Our people continue to be fundamental to
Rotork’ssuccess. As the designated Non-executive
Director for Workforce Engagement during 2024
TimCobbold ensured employees’ views were
represented and their interests were considered
at the strategic level aspart of the Board’s decision
making. As I mentioned above, VanessaSimms
took over thisrole from Tim from 1 January 2025,
having already been involved in employee
engagement activities during 2024. More details
about Tim’s, Vanessa’s and the wider Board’s
engagement activities undertaken during the
yearare set out on pages 112 to 113.
Details of how the Board considered the impact
of its strategic decision making on various
stakeholder groups during the year and how the
Board engaged with stakeholders to understand
their views can be found on pages 106 to 111.
Astatement on how the directors had regard
tothe matters set out in Section 172(1) of the
Companies Act 2006 can be found on page 9.
Board performance review
Pursuant to the 2018 Code, there is a requirement
to undertake an externally facilitated Board
evaluation every three years.Given that our last
external review was undertaken in 2023, this
year we conducted aninternal evaluation of the
Board and its Committees. As part of the internal
evaluation, we sought feedback from the
directors on whether the recommendations
arising from the 2023 evaluations had been
addressed during the year. The results of the
2024 internal evaluation concluded that Rotork’s
Board, and its Committees, continue to operate
effectively. TheBoard and I together agree
thatwe have anappropriate balance of skills,
experience, capability and diversity on the Board
and that we each have sufficient time to commit
to our roles. Notwithstanding this, we are not
complacent and we have identified some priorities
for the Board and its Committees for us to take
forward during 2025 as a way of continual
improvement. Details of this can be found on
page 114.
Governance
Throughout the year, we have applied the
principles of the 2018 Code to our decision
making and have ensured that there is good
co-operation within the Group to enable us
todischarge our governance responsibilities
effectively. The application of the principles of
the 2018 Code are described throughout this
report, together with explanations and signposts
providing direction to the relevant page where
more detail can be found.
The Company’s 2018 Code corporate governance
compliance statement for 2024 is set out on
page 96.
On behalf of the Board, I would like to thank all
Rotork’s employees for their hard work during
2024. Rotork is a world class business, which
remains well placed to build on its existing
strengths and continue to deliver sustainable
growth over the coming years.
Dorothy Thompson, CBE
Chair
10 March 2025
Focus for the Board during 2025
Continued implementation of the
Growth+strategy
Continued Board oversight of the delivery
ofmid to high single-digit revenue growth
and mid-20s adjusted operating margins
over time in line with the Growth+ strategy.
Business transformation and ERP rollout
Strategic oversight of business
transformation through the implementation
and integration of common systems and
processes throughout the Group.
People and culture initiatives
Continued strategic direction and support
of the learning and development and
leadership programmes together with
cultural initiatives, which shall enhance
ourevolving culture to support the
Company’s delivery of strategic goals
andlong-term success.
Board composition continued
rotork.com Rotork Annual Report 202493
Strategic report Corporate governance Finan ial statements
Chair’s governance overview continued Strategic report Corporate governance Financial statements
A Board with experience
A
Audit Committee
N
Nomination Committee
R
Remuneration Committee
S
Safety and Sustainability Committee
Denotes Committee Chair
Committee composition and Board roles held
are asat 1 January 2025.
Oversight of strategy,
promoting the
long-term sustainable
success of the Company
and generating value
for stakeholders
continues to be the
focus of the Board.
N
N
R
S
Dorothy Thompson, CBE (64)
Chair
Kiet Huynh (46)
Chief Executive Officer
Ben Peacock (50)
Chief Financial Officer
Andrew Heath (61)
Senior Independent
Non-executive Director
Appointed to the Board
December 2022
Skills, competencies andexperience
Dorothy was previously Chief Executive
Officer of Drax Group plc, the UK
renewable power business, from 2005
to 2017, and since then has built
extensive experience in a non-executive
capacity across public and private
company boards and the UK’s central
bank. She is currently a non-executive
director of Eaton Corporation plc, a
leading global power management
company listed on the New York
StockExchange, and of InstaVolt Ltd,
aprovider of electric vehicle
charginginfrastructure. She is also
non-executive Chair of Statera Energy
Ltd, a UK energy company which
provides grid-balancing support.
Dorothy retired as Senior Independent
Director of the Bank of England in
July2022, where she had been on the
Court since 2014. From 2018 to 2021
she served as the non-executive
Chairof Tullow Oil plc and was a
non-executive director of Johnson
Matthey plc from 2007 to2016.
External appointments
Non-executive director of Eaton
Corporation plc
Appointed to the Board
January 2022
Skills, competencies andexperience
Kiet joined Rotork in 2018 as
Managing Director responsible for
theInstruments division. Following
the Group’s divisional realignment in
2019, he has led both the Chemical,
Process & Industrial and the Water &
Power divisions. Kiet has more than
17 years’ experience working as a
senior executive for world-leading
industrial companies, beginning his
career at IMI plc before moving on
toTrelleborg. He has a Master’s in
Mechanical Engineering from the
University of Birmingham. Kiet was
appointed as CEO on 10 January 2022
and has been instrumental in curating,
launching and now implementing
Rotork’s Growth+ strategy.
External appointments
None
Appointed to the Board
March 2024
Skills, competencies andexperience
Ben was appointed in March 2024,
bringing extensive experience in
financial leadership, strategic planning
and corporate governance. Prior to
joining Rotork, Ben played a key role
at The Weir Group PLC for 10 years,
most recently as Vice President,
Finance & IT for the Minerals Division.
In this role, Ben was instrumental in
shaping financial strategy, optimising
operational efficiency, and driving
digital transformation initiatives to
enhance business performance. Prior
to his tenure at Weir, Ben held finance
roles at Vodafone Group plc and Intel
Corporation. Ben is CIMA qualified
and a Fellow of The Association of
Corporate Treasurers.
External appointments
None
Appointed to the Board
April 2024
Skills, competencies andexperience
Andrew was appointed Senior
Independent Non-executive Director
from 1 January 2025 after originally
joining the Board in April 2024.
Andrew brings a wide range of
experience in delivering transformation
and shareholder value in technology-
driven businesses. He is currently
Chief Executive Officer of Spectris plc.
From 2016 to 2018, he was CEO of
Imagination Technologies Group plc,
having previously served as a
non-executive director of that
company from 2012. From 2015,
hewas CEO of Alent plc. Andrew
began his career at Rolls-Royce and
has an engineering degree from
Imperial College and an MBA from
Loughborough University.
External appointments
Chief Executive Officer of Spectris plc
Rotork Annual Report 2024 rotork.com94
Board of directors Strategic report Corporate governance Financial statements
Svein Richard Brandtzæg (67)
Non-executive director
Karin Meurk-Harvey (59)
Non-executive director
Vanessa Simms (49)
Non-executive Director for
WorkforceEngagement
Janice Stipp (65)
Non-executive director
Tim Cobbold (62)
Previous non-executive director
1
Appointed to the Board
November 2024
Skills, competencies andexperience
Svein Richard brings a strong
commercial and strategic background
in the industrial sector to Rotork having
been Chief Executive of Norsk Hydro
ASA, a Norwegian aluminium and
renewable energy company, from
2009 to 2019. Svein Richard is currently
Chair of dormakaba Holding AG and a
non-executive director of Mondi plc.
He is also Chair of the Council on
Ethics for Norwegian Bank Investment
Management. He has previously held a
number of non-executive positions,
including Chair of Veidekke ASA,
ViceChair of Den Norske Bank ASA
and Vice Chair of Swiss Steel Holding
AG. Svein Richard holds a PhD in
Chemistry from the Norwegian
University of Science and Technology
and is a fellow of the Norwegian
Academy of Technological Sciences.
External appointments
Chair of dormakaba Holding AG
Non-executive director of Mondi plc
Chair of the Council on
EthicsforNorwegian Bank
InvestmentManagement
Appointed to the Board
September 2021
Skills, competencies andexperience
Karin has an international background
in engineering, technology and
telecoms spanning over 30 years,
adding commercial expertise to Rotork’s
Board, particularly in high-growth
technology/digital markets. Karin is
currently Chief Commercial Officer of
Smart DCC Ltd, a provider of smart
meter communication network
solutions. Between 1996 and 2013,
Karin held anumber of senior roles
withEricsson and has also served
asanon-executive director of
KoralaAssociates Ltd, aprivately
ownedATM software business.
External appointments
Chief Commercial Officer of Smart
DCC Ltd
Appointed to the Board
June 2024
Skills, competencies andexperience
Vanessa brings extensive financial
expertise to the Rotork Board,
together with experience across a
diverse range of industries, including
real estate, renewable power
generation, medical devices and
telecommunications. Vanessa is
currently Chief Financial Officer at
Land Securities Group plc and was
formerly Chief Financial Officer at
Grainger plc. Prior to this Vanessa was
Deputy Chief Financial Officer at Unite
Group plc and UK Finance Director at
SEGRO plc. Mostrecently, Vanessa
was an independent non-executive
director atDrax Group plc. Vanessa
isa Chartered CertifiedAccountant.
External appointments
Chief Financial Officer of Land
Securities Group plc
Appointed to the Board
December 2020
Skills, competencies andexperience
Janice brings highly relevant sectoral
and financial expertise to the Rotork
Board, together with a global
perspective, particularly US and Asia.
Janice is currently non-executive
director and Audit Committee Chair
of Diploma PLC, a distribution
group. She is also non-executive
director of ArcBest Corporation.
Janice was formerly Senior Vice
President and Chief Financial Officer
of Rogers Corporation, a US
speciality engineered materials
technology and manufacturing
company. Prior to this, Janice held
senior financial positions in various
international manufacturing and
engineering companies. Janice is a
member of the American Institute
ofCertified Public Accountants.
External appointments
Non-executive director and Audit
Chair of Diploma PLC
Non-executive director of
ArcBestCorporation
Board tenure
December 2018 – December 2024
Skills, competencies andexperience
Tim served as a director throughout
2024 and stepped down from the
Board on 31 December 2024. During
2024, Tim was Rotork’s Senior
Independent Non-executive Director,
Chair of the Remuneration Committee
and the designated Non-executive
Director for Workforce Engagement.
Tim has extensive experience in leading
large, complex international listed
businesses, having previously served as
the Chief Executive Officer of Chloride
Group plc, De La Rue plc and, more
recently, UBM plc. Prior to this, Tim
held senior management positions at
Smiths Group/TI Group for 18 years.
He was a non-executive director at
Drax Group plc until September 2019.
External appointments
Non-executive Chair of TI Fluid
Systems plc
Non-executive Director and Chair
Designate of Spirax Group plc
1 Tim Cobbold stepped down from the Board
on 31 December 2024.
A
S
R
S
A
N
S
A
R
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Board of directors continued Strategic report Corporate governance Financial statements
Key Board activities during 2024
UK Corporate Governance Code2018 - corporate governance compliance statement
It is the Board’s view that for the financial
yearended 31 December 2024, the
Companycomplied with the principles of
the UK CorporateGovernance Code 2018
(the2018Code), with the exception of a
brief c. seven week period during which the
Audit Committee had two members rather
than the three required by Provision 24 of
the 2018 Code. No business of the Audit
Committee was required to be discussed
during that period. Further details are
included within the Audit Committee Report
on page 123.
The Company’s auditor, KPMG LLP, is required
to review whether this statement reflects the
Company’s compliance with the provisions of
the 2018 Code specified for its review by UK
Listing Rule 6.6.20R and to report if it does
not reflect such compliance. No such report
has been made.
The 2018 Code is publicly available on the
website of the Financial Reporting Council
atwww.frc.org.uk.
The Board notes that the UK Corporate
Governance Code 2024 applies to the
Company from 1 January 2025.
Progressing the
Growth+strategy
Deep dives into Target
Segments and key
business functions
Overseeing the
progress of our
sustainability
framework
Ensuring strong succession and
comprehensive onboarding of newly
appointed directors
Promoting diversity
andinclusion
Oversight of cultural
initiatives and
employeeengagement
Continued oversight and
monitoring of the
implementation of
Rotork’s Growth+
strategy, which is
designed to drive growth
through a focus on
Target Segments,
Customer Value
andInnovation.
In addition to the annual
off-site strategy meeting,
the Board undertook
focused deep dive
reviews into each of the
Target Segments (a key
pillar within the Growth+
strategy) and also the key
business functions that
support the delivery
ofthe strategy.
Overseeing thecontinued
implementation of
Rotork’s sustainability
strategy, including the
implementation of
energy efficiency projects
and investment in on-site
renewable energy.
Welcomed Ben Peacock as Chief Financial
Officer in March 2024 and approved the
appointment of three non-executive directors:
Andrew Heath (April 2024); Vanessa Simms
(June 2024) and Svein Richard Brandtzæg
(November 2024). Ensured the inductions
forBen, Andrew, Vanessa and Svein Richard
were tailored and comprehensive. The Board
continues to recognise the advantages of
having diversity of gender, social and ethnic
backgrounds and experience and cognitive
and personal strengths on the Board and
senior management.
Committed to
maintaining a diverse
and inclusive culture
onthe Board and
working to achieve a
diverse executive and
leadershipcomposition.
Involvement in the
cultural initiatives
underway withour
employees and continued
engagement with our
people on awide range
of matters to ensure
theBoard understands
their views through site
visits, webinars, direct
two-way communication
and all-employeesurveys.
Revenue growth in 2024
(OCC):
8.2%
Deep dive sessions at
Board meetings:
10
Commitment to net-zero
by:
2045
2030 target to reduce scope
1and 2 emissions by:
42%
Average non-executive directortenure:
2.4 years
Board female
representation asat
31December 2024:
44.44%
1
Board ethnicity as at
31December 2024:
22.22%
2
Director site visits:
8
1 From 1 January 2025, after Tim Cobbold had stepped down from the Board on 31 December 2024, the female Board representation was 50%.
2 Rotork exceeds the Parker Review recommendations for FTSE 250 companies. From 1 January 2025, after Tim Cobbold had stepped down from the Board on 31 December 2024, the Board ethnic representation was 25%.
Task Force on Climate-related
Financial Disclosures - statement
ofcompliance
Rotork’s statement of compliance in implementing
the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD),
required to be made under UK Listing Rule
6.6.6R(8), is set out onpage 79.
Rotork Annual Report 2024 rotork.com96
Governance highlights Strategic report Corporate governance Financial statements
Director changes
• Ben Peacock joined the Board as executive
director and Chief Financial Officer on
11March 2024 to succeed Jonathan Davis,
who stepped down from the Board on
30April 2024.
• Ann Christin Andersen stepped down from
theBoard on 30 April 2024.
• Andrew Heath was appointed as a non-executive
director with effect from 1 April 2024.
• Vanessa Simms was appointed as a
non-executive director with effect from
21June2024.
• Svein Richard Brandtzæg was appointedas a
non-executive director on20November 2024.
• Tim Cobbold stepped down from the Board
and the positions of Senior Independent
Non-executive Director and designated
Non-executive Directorfor Workforce
Engagement on 31December 2024.
• Andrew Heath was appointed Senior
Independent Non-executive Director with
effectfrom 1January 2025.
• Vanessa Simms was appointed designated
Non-executive Director for Workforce
Engagement with effect from 1 January 2025.
Board gender identity or sex as at
31December 2024
Board composition
Male – 55.56%
Female – 44.44%
Board ethnic background as at
31 December 2024
White British orother
White (including minority-
White groups) – 77.78%
Asian/Asian British
–22.22%
Independence/skills and experience
Kiet
Huynh
Ben
Peacock
Dorothy
Thompson
1
Andrew
Heath
Svein Richard
Brandtzæg
Karin
Meurk-Harvey
Vanessa
Simms
Janice
Stipp
Tim
Cobbold
2
Independence
Listed CEO/CFO experience
Sector experience
3
Engineering and innovation
Operations
International
Health and safety
Finance and banking
Strategy and M&A
Sustainability
Digital, cyber and technology
1 Dorothy Thompson was considered independent upon appointment.
2 Tim Cobbold stepped down from the Board on 31 December 2024.
3 Sector experience means experience in the flow control sector together with the oil and gas, chemical, process and industrial,
and water and power sectors, being Rotork plc’s end markets.
Directors’ skills and experience matrix
The matrix below details the directors who were considered independent and the skills and
experience that the directors, who were appointed as at 31 December 2024, brought to the
boardroom table in driving Rotork’s long-term success and supporting its purpose and sustainability
vision of keeping the world flowing for future generations. Complementary to such skills is diversity
in approach and thinking styles, which results from the varied backgrounds and experiences of the
directors. This is covered more fully in the individual biographies on pages 94 and 95.
Name 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Dorothy Thompson
Janice Stipp
Karin Meurk-Harvey
Andrew Heath
Vanessa Simms
Svein Richard Brandtzæg
Tim Cobbold
1
Chair and non-executive director Board tenure as at 31 December 2024
Board at a glance
Asian/Asian British representation was 22.22% as at
31December 2024 and exceeded the Parker Review
recommendation for FTSE 250 companies for at least one
ethnically diverse Board member by 2024. From 1 January 2025,
after Tim Cobbold had stepped down from the Board on
31December 2024, 25% of the Board were represented by
thiscategory.
Female Board representation was 44.44% as at 31
December 2024 and exceeded the target set under the UK
Listing Rules and DTRs of 40% female representation on
boards by 2024. From 1 January 2025, after Tim Cobbold
had stepped down from the Board on 31 December 2024,
the female Board representation was 50%.
1 Tim Cobbold
stepped down
from the Board on
31 December 2024.
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Governance highlights continued Strategic report Corporate governance Financial statements
Board Committees
1
The Board is supported by its principal Board Committees, each of which is responsible for overseeing and making recommendations to the Board on their respective specialist areas,
as set out below andwithin their respective Committee reports.
Our governance framework - the Board, Board Committees and Rotork Management Board
1 In addition, the Disclosure Committee of the Board oversees the disclosure of market sensitive information and other public announcements.
The Board
The Board is accountable to shareholders for the long-term sustainable success of the Group. This is achieved through setting Rotork’s strategy and priorities and overseeing their delivery in a way that
enables sustainable long-term growth, whilst maintaining a balanced approach to risk within a framework of effective internal controls and taking into consideration the interests of our diverse range
ofstakeholder groups. Oversees alignment of Rotork’s purpose, vision, values, evolving culture and risk with the Growth+ strategy.
Rotork Management Board
Led by Kiet Huynh, Rotork’s Chief Executive Officer, the Rotork Management Board is the executive committee of Rotork below Board level.
Audit Committee
Janice Stipp, Chair
To assist the Board with the discharge of its
responsibilities in relation to financial reporting,
including reviewing the Group’s annual and
half-year financial statements and accounting
policies, internal and external audits and risk
management and controls.
Read more in the Audit Committee report
onpage 121
Nomination Committee
Dorothy Thompson, Chair
To keep under review the composition, structure
and size of, and succession to, the Board and its
Committees. To oversee succession planning for
senior executives and the Board, leading the
process for all Board appointments. To evaluate
the balance of skills, knowledge, experience and
diversity on the Board.
Read more in the Nomination Committee report
on page 126
Remuneration Committee
Svein Richard Brandtzæg, Chair
To recommend the Group’s policy on executive
remuneration, determining the levels of
remuneration for executive directors, the Chair
and the Rotork Management Board. To oversee
remuneration and workforce policies and take
these into account when setting the policy for
directors’ remuneration.
Read more in the Directors’ Remuneration report
on page 131
Safety and Sustainability Committee
Andrew Heath, Chair
To oversee the implementation of Rotork’s
safety and sustainability strategies in line with
itspurpose and sustainability vision of keeping
the world flowing for future generations.
Read more in the Safety and Sustainability
Committee report on page 117
Responsibilities
The Rotork Management Board is responsible for facilitating and ensuring the development, implementation and execution of the Growth+ strategy (set by the Board) through the day-to-day operational
and functional management of the business.
Rotork Annual Report 2024 rotork.com98
Corporate governance report Strategic report Corporate governance Financial statements
1 Tim Cobbold held the role during 2024 until 31 December 2024 when Tim stepped down from the Board.
The Board
The Board is comprised of the Chair, executive directors and independent non-executive directors all supported by the Group General Counsel & Company Secretary.
Non-executive Chair
Dorothy Thompson
Leads the Board and sets its agenda; facilitates
constructive Board relations; promotes a culture
of openness and debate; sets high standards of
integrity and ensures effective governance is
maintained; supports and guides the CEO;
oversees Group performance; represents the
Group and leads relations with shareholders
tounderstand their perspectives.
Senior Independent Non-executive Director
Andrew Heath
Provides a sounding board for the Chair and
acts as an intermediary forother directors and
shareholders; leads the annual performance
evaluation of the Chair; and ensures the orderly
succession of the Chair’srole.
Chief Executive Officer
Kiet Huynh
Overall management of the Group and
leadership of the Rotork Management Board;
delivers the Group strategy; leads operational
management, business development and
growthopportunities; influences and develops
succession plans; andmanages investor relations.
Chief Financial Officer
Ben Peacock
Reports to the Board on the Group financial
performance; supports the CEO in delivering the
Group strategy and in managing investor
relations; implements Board decisions; oversees
the application of the capital allocation policy of
the Group; and isresponsible for compliance
with financial policy andcontrols.
Non-executive directors
Provide independent oversight, judgement and challenge to the executive directors on delivery
ofthe Company’s strategy within the agreed control framework and governance structure
andensure balance in the Board’s decision-making process.
Svein Richard Brandtzæg
Andrew Heath
Karin Meurk-Harvey
Vanessa Simms
Janice Stipp
Designated Non-executive Director for
Workforce Engagement
Vanessa Simms
1
Provides an effective engagement mechanism
for theBoard to understand the views of the
workforce; brings the views and experiences of
the workforce intothe boardroom; and ensures
that the views oftheworkforce are considered
in the Board’s decisionmaking.
Group General Counsel
&CompanySecretary
Stuart Pain
Advises the Board on legal and corporate
governance matters and supports the Board in
applying the Code, complying with UK listing
obligations and other statutory and regulatory
requirements; and ensures Board members
have access to the information they need.
Rotork Management Board
Members of the Rotork Management Board attend Board meetings by invitation to provide updates to the Board on operational matters and liaise with the Board outside of the formal meetings.
Thecurrent members of the Rotork Management Board are listed below.
Kiet Huynh – Chief Executive Officer
Ben Peacock – Chief Financial Officer
Keith Barnard – Managing Director, Oil & Gas
Paul Burke – Chief Information Officer
Metin Gerceker – Managing Director, Water & Power
Chris Klasner – Operations Excellence Director
Xin Man – Managing Director, Chemical, Process & Industrial
Lyndsey Norris – Business Transformation Director
Beatriz Rodriguez Gomez – Chief Human Resources Officer
Stuart Pain – Group General Counsel & Company Secretary
Ross Pascoe – Chief Technology Officer
Mike Pelezo – Director, Rotork Service
Our governance framework - roles of directors on the Board and the Rotork Management Board
rotork.com Rotork Annual Report 202499
Corporate governance report continued Strategic report Corporate governance Financial statements
The Board is responsible for determining the
Company’s strategy, purpose, culture and values,
reflecting in particular the generation of
long-term value for shareholders and Rotork’s
role in ensuring a sustainable future. It oversees
the execution of the Growth+ strategy by
management and the governance and control
framework underpinning the Company.
TheBoard is assisted by its principal Board
Committees (Audit, Nomination, Remuneration,
and Safety and Sustainability), each of which
isresponsible for reviewing and dealing with
matters within its terms of reference. The
activities and decisions made at each of the
Committee meetings are reported to the
subsequent Board meeting.
This year’s strategy meeting was held in June
atour site in Rochester (New York, US), during
which the Board reviewed in detail the ongoing
progress of the implementation of Rotork’s
Growth+ strategy, which completed its third full
year of implementation in 2024. The feedback
received during the internal Board evaluation
in2024 was that the strategy meeting was
considered valuable and productive by the
directors. More details on the Growth+ strategy
and Rotork’s business model are covered on
pages 1 and pages 6 and 7 of the Strategic
Report. The Board remains confident that the
necessary resources are in place for the business
to continue to meet its strategic objectives.
The Board is also responsible for the review and
oversight of the effective management of risk,
whilst delegating oversight of the controls
framework to the Audit Committee. The Board
has been kept fully updated on the detailed
work being undertaken by the Audit Committee
as part of the Company’s preparation for Provision
29 of the 2024 Corporate Governance Code
becoming effective from next year. TheBoard
rigorously challenges strategy, performance,
responsibility and accountability to ensure that
decisions are made effectively and in the
long-term interests of the business.
In its duty to promote the long-term success of
Rotork, the Board recognises that its responsibilities
extend not only to the creation of value for its
shareholders but also to the Company’s wider
stakeholders, including employees, customers,
suppliers and communities in which it operates. In
doing so, the Board actively sought to understand
the views of these key stakeholder groups and
the impact of its decisions on stakeholders.
Pages 106 to 111 describe how their interests
have been considered at Board-level discussions.
Division of responsibilities
All the non-executive directors have the appropriate
skills, experience in their respective disciplines and
characteristics to bring independence and objective
judgement to Board discussions. As well as acting
as Board Chair, Dorothy Thompson chairs the
Nomination Committee. As the Senior Independent
Non-executive Director throughout 2024, Tim
Cobbold provided asounding board for the Chair
in addition to actingas an intermediary for other
directors and shareholders, a role now held by
Andrew Heath since 1January 2025. InDecember
2024, as per the annual Board evaluation exercise,
the remaining non-executive directors met with
theSenior Independent Non-executive Director,
without the Chair present, to appraise the
Chair’sperformance. Further details of the review
can be found on page114.
Janice Stipp chairs the Audit Committee. Andrew
Heath has chaired the Safety and Sustainability
Committee from 1 May 2024, taking over from
Ann Christin Andersen who retired from the
Board on 30 April 2024. From 1 January 2025,
Svein Richard Brandtzæg chairs the Remuneration
Committee, a role held by Tim Cobbold during
the course of 2024. Vanessa Simms became
thedesignated Non-executive Director for
Workforce Engagement on 1 January 2025,
succeeding Tim Cobbold, who held the role
during the course of 2024. Details of the work
undertaken by Tim Cobbold in fulfilment of this
role during 2024, alongside the employee
engagement activities of other Board members,
can be found on pages 108 to 109 and 112
to113.
Private meetings of the non-executive directors
are held at each Board meeting and each year
the Chair and the non-executive directors meet
outside of the formal meeting structure, and
without the executive directors present, to
scrutinise and hold to account the performance
ofmanagement and individual executive directors.
The roles of the Chair, Senior Independent
Non-executive Director, Chief Executive Officer
and Chief Financial Officer as well as the members
of the Rotork Management Board are set out
inthe governance framework on 98.
Board leadership
Board and Board Committee meetings and Rotork’s financial calendar in 2024
Feb Mar Apr May Jun Aug Sep Oct Nov Dec
Board and Board
Committee meetings
Remuneration
Committee
Safety and
Sustainability
Committee
Board meeting
Audit Committee
Nomination
Committee
Board meeting
Nomination
Committee
Safety and
Sustainability
Committee
Annual Board
strategy meeting
Nomination
Committee
Remuneration
Committee
Board meeting
Audit Committee
Board meeting
Audit Committee
Nomination
Committee
Remuneration
Committee
Safety and
Sustainability
Committee
Board meeting
Nomination
Committee
Board meeting
Audit Committee
Nomination
Committee
Remuneration
Committee
Financial calendar
2023 full-year results
Commenced £50m
share buyback
2024 Annual
General Meeting
Q1 trading update
2023 final
dividendpaid
2024 half-year results 2024 interim
dividend paid
Q3 trading update Completed £50m
share buyback
Rotork Annual Report 2024 rotork.com100
Corporate governance report continued Strategic report Corporate governance Financial statements
Non-executive director independence
The Chair is committed to ensuring that the
Board comprises a majority of independent
non-executive directors who objectively support
and challenge management on the execution of
the Company’s strategy.
The Company maintains clear records of the
terms of service of the Chair and non-executive
directors to ensure they meet the requirements
of the 2018 Code. Neither the Chair nor any
non-executive director has exceeded their
nine-year recommended term of service. Charts
illustrating which directors are considered to be
independent and the tenure of the Chair and
each non-executive director are set out on
page97.
The Board considers all non-executive directors,
Svein Richard Brandtzæg, Andrew Heath, Karin
Meurk-Harvey, Vanessa Simms and Janice Stipp,
to be independent. Dorothy Thompson, Chair,
was considered to be independent on her
appointment. Tim Cobbold and Ann Christin
Andersen were both considered to be independent
throughout their tenure during the year.
Board effectiveness
Composition
The Board currently consists of eight Board
members, six of whom are non-executive
directors. As at 10 March 2025, female
representation on our Board was 50% with
ethnic diversity representation being 25%.
The Board members come from a variety of
professional backgrounds including engineering,
manufacturing and finance, and collectively
possess significant managerial experience, as
well as experience of being executive directors
ofother public limited companies. A more
detailed analysis of Board composition, skills and
experience can be found on pages 94, 95 and
97. In line with Provision 18 of the 2018 Code,
each director who is continuing in service is
subject to annual re-election at the AGM.
Information and support
All non-executive directors are entitled to unfettered
access to information and management across the
Group. Rotork’s executive directors understand
thedistinction between their roles as executive
managers and as Board directors.
The Board has a procedure for directors, if deemed
necessary, to take independent professional advice
at the Company’s expense in the furtherance of
their duties. All directors have access to the advice
of the Group General Counsel & Company
Secretary who supports the Board on legal and
corporate governance matters, including compliance
with the Company’s obligations under the UK
Listing Rules and other regulatory or statutory
requirements. Together with the CEO and the
Group General Counsel & Company Secretary,
theChair ensures that the Board is kept properly
informed and is consulted on all issues reserved
forit. Board papers and other information are
distributed in a timely fashion to allow directors
tobe properly briefed in advance of meetings.
In accordance with the Company’s Articles of
Association, directors, as well as the Group
General Counsel & Company Secretary, have
beengranted an indemnity by the Company to
theextent permitted by law in respect of liabilities
incurred as a result of their office. The indemnity
would not provide any coverage where they are
proved to have acted fraudulently or dishonestly.
The Company has also arranged appropriate
insurance cover in respect of legal action against
itsdirectors and officers.
Induction and ongoing
professionaldevelopment
Following appointment, each director receives a
comprehensive and formal induction to familiarise
them with their duties and Rotork’s business
operations and risk and governance arrangements.
As new directors they need to quickly absorb a
great deal of information about the business if
they are to fulfil their roles effectively from the
start. Our tailored inductions offer a swift and
thorough way to help them understand our
strategy, business, markets, products, culture
and relationships and to establish a link with
oursenior management and wider workforce.
Through these interactions, they are able to gain
an insight into the Rotork culture and values.
More detail about the tailored inductions
received by Ben Peacock, Andrew Heath,
Vanessa Simms and Svein Richard Brandtzæg
upon joining the Board during 2024 is set out
inthe Nomination Committee Report on page 128.
In order to facilitate continued awareness and
understanding of Rotork’s business and the
environment in which it operates, directors
aregiven regular updates on changes and
developments in the business, with each
member of the Rotork Management Board
presenting on their area of responsibility at
Board meetings at least annually and the Board
members undertaking eight site visits during
2024. Over the course of the year, directors will
continually update and refresh their skills and
knowledge and are able to seek independent
professional advice when required.
Conflicts of interest
Procedures are in place to identify and manage
declared actual and potential conflicts of interest
which directors (or their connected persons) may
have and are obliged to avoid under their
statutory duties and the Company’s Articles of
Association. The Board considers each director’s
situation and decides whether to approve any
conflicts based on the overriding principle that
adirector must at all times be able to consider
and exercise independent judgement to promote
the success of the Company. This procedure
hasoperated effectively throughout the year.
Authorisations given by the Board are reviewed
on an annual basis. No director has declared any
material conflicts of interest.
Responsibilities of the Board
The Board delegates certain matters to specific
Committees for more in-depth consideration,
including to the Audit, Nomination, Remuneration,
and Safety and Sustainability Committees. Each
Committee has formal, written terms of reference
which are available to download from the Rotork
website at www.rotork.com/en/investors/committees
and which are reviewed annually. AllCommittees
have at least three independent non-executive
directors within their composition. The Company
also has a Disclosure Committee. The Group
General Counsel & Company Secretary acts as
secretary to all the Committees. The number
ofBoard meetings and Audit, Nomination,
Remuneration, and Safety and Sustainability
Committee meetings held during the year can
befound on page 102.
Time commitment
All directors are expected to attend all meetings
(whether pre-planned or ad hoc) of the Board and
any Committees on which they serve, alongside the
Board strategy days and AGM. Directors are also
expected to devote sufficient time to prepare for
each Board and Committee meeting, in order to
contribute effectively to discussions.
By accepting their appointment each non-executive
director has confirmed that they are able to allocate
sufficient time to the Company to discharge their
responsibilities effectively. In accordance with the
2018 Code and the Company’s External Board
Appointments Policy, directors are also required to
seek prior approval from the Board before accepting
additional external appointments.
The Chair, through the Nomination Committee
under its terms of reference, monitors the time
commitment of the non-executive directors in
the context of both the roles held internally and
external appointments, with no issues having
been identified during the year. The 2024
internalBoard evaluation captured feedback
specifically on time commitments, meeting
preparedness and contributions by directors.
Noissues were identified.
rotork.com Rotork Annual Report 2024101
Corporate governance report continued Strategic report Corporate governance Financial statements
Board effectiveness continued
Board meetings
The Board meets regularly during the year as well
as on an ad hoc basis, as business needs dictate.
The Board met formally seven times during the
year, with video calls held in other months for
updates on key matters relating to trading and
financial performance. Attendance at each of the
Board and Board Committee meetings during the
year are shown opposite. The Chair, Chief Executive
Officer and Group General Counsel & Company
Secretary agree a structured agenda in advance of
each Board meeting. Board activities are structured
to help the Board achieve its goals and to provide
support and advice to the executive management
team on the delivery of strategy within a robust
governance framework. Throughout the year, the
Board has received regular in-depth progress
reports and presentations on current trading and
financial performance and presentations from the
Chief Executive Officer, the Chief Financial Officer
and the wider executive management team,
particularly regarding implementation updates
onour Growth+ strategy and the three pillars
contained within it, our business systems and
cultural initiatives and the development of our
people. Other regular reports have included health
and safety, litigation, ethics, compliance and
governance updates, investor relations activities,
taxand treasury updates, environmental and
sustainability issues, risk management reviews and
cybersecurity updates. Board papers are circulated
in advance of meetings, to ensure that the directors
have sufficient time to consider their content prior
to the meeting. If a director is unable to attend a
meeting due to exceptional circumstances, they still
receive the papers in advance of the meeting and
would have the opportunity to discuss with the
relevant Chair any matters on the agenda they wish
to raise. Feedback is provided to the absent director
on the decisions taken at the meeting.
The Chair meets privately with the Senior
Independent Non-executive Director and with
the non-executive directors on a regular basis.
Responsibilities of the Board continued
Board and Board Committee meeting attendance in 2024
Board director
Board
meetings
Audit
Committee
meetings
Nomination
Committee
meetings
Remuneration
Committee
meetings
Safety and
Sustainability
Committee
meetings
Number of meetings
7
Number of meetings
4
Number of meetings
6
Number of meetings
4
Number of meetings
3
See Audit
Committee Report
from P.121
See Nomination
Committee Report
from P.126
See Remuneration
Committee Report
from P.131
See Safety and
Sustainability
Committee Report
from P.117
Current directors:
Board member since
Dorothy Thompson,
Chair
December 2022 7/7 — 6/6 — —
Kiet Huynh,
Chief Executive Officer
January 2022 7/7 — — — —
Ben Peacock,
Chief Financial Officer
March 2024 6/6 — — — —
Andrew Heath, Senior Independent
Non-executive Director
1
April 2024 6/6 — — 3/3 1/1
Svein Richard Brandtzæg,
non-executive director
November 2024 1/1 — — — —
Karin Meurk-Harvey,
non-executive director
September 2021 7/7 — 2/2 4/4 3/3
Vanessa Simms,
non-executive director
June 2024 5/5 3/3 — — 1/1
Janice Stipp,
non-executive director
December 2020 7/7 4/4 6/6 1/1 —
Former directors:
Board member up to
Jonathan Davis,
Group Finance Director
April 2024 2/2 — — — —
Ann Christin Andersen,
non - execu tive dire c tor
2
April 2024 1/2 1/1 1/2 1/1 2/2
Tim Cobbold,
non-executive director
1
December 2024 7/7 4/4 6/6 4/4 2/2
1 Tim Cobbold was the Senior Independent Non-executive Director up to 31 December 2024 (stepping down from the Board on this date). Andrew Heath was appointed as Senior Independent
Non-executive Director from 1 January 2025.
2 Ann Christin Andersen stepped down from the Board on 30 April 2024. Ann Christin was unable to attend the March Board and Nomination Committee meetings due to an unforeseen and
unavoidable commitment. She received the papers in advance and provided feedback to the Board Chair which was shared at the meeting. The Board Chair then briefed her on deliberations
and outcomes following the meeting.
Rotork Annual Report 2024 rotork.com102
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Strategy and sustainability Financial Operational People and organisational Risk, governance, legal, compliance
and investor relations
Key Board
activity
• Regular deep dives into Growth+
strategic initiatives with focus on
target markets
• M&A strategy
• Acquisition pipeline and proposals
• Opportunities to accelerate growth
• Off-site strategy meeting
• Progression of sustainability strategy
in line with Rotork’s three pillars
• Regular financial
performanceupdates
• Full-year, half-year and
tradingupdates
• 2025 budget
• Cash flow, liquidity, going
concern and long-term viability
• Use of cash/capital
allocation,including share
buyback considerations
• Health and safety
• Divisional and functional reviews
• Supply chain and geopolitical
riskassessment
• ERP platform rollout update
• Capital expenditure and investment
• New product development
• Tour of Rochester (NY) facilityand
the research and development
facility in Bath
• People and culture update
• Employee engagement surveys
• Succession planning
• Board Diversity and Inclusion
Policy update
• Gender pay gap
• Employee voice in the boardroom
• Full and half-year risk reviews, including principal
and emerging risks
• AGM matters, including share allotment authority
resolutions and director re-elections
• Updated Code of Conduct
• ‘Speak Up’ reports
• Legal, Ethics and Compliance functional review
• Modern Slavery Statement
• Internal Board evaluation
• Annual review of Committee’s terms of reference
and matters reserved for the Board
• Investor Relations updates and functional review
• Consideration of 2024 UK Corporate
GovernanceCode and regulatory updates
Outcomes
• Effective monitoring and oversight
of the implementation of the
Growth+ strategy and awareness
of end-market development
• Investment in growth initiatives
• Continued monitoring of our
science-based emissions reduction
targets according to current
agreed methodology
• Agreed to acquire NOAH
Actuation Co., Ltd. in March 2025
• Continued active dialogue and
relationship building with investors
and investment community
• Publication of Annual Report
andAccounts
• Progressive final and
interimdividends
• New uncommitted revolving
credit facility
• £50m share buyback programme
completed in 2024, with the
intention to undertake an
additional £50m share buyback
programme during 2025
• Reaffirmation of capital allocation
policy and funding position
• Publication of tax strategy
• Effective Board oversight of
operations and execution of
Growth+ strategy with feedback
to management
• Use of TRIR as a KPI in place
ofLTIR
• Approval of the continued
deployment of the ERP across
theGroup on a phased basis
• Action plan to de-risk geopolitical
exposure to supply chain
• Greater understanding of new
product development process
andpipeline
• Launch of IQ3 Pro and
Ethernetproducts
• Strategic direction and
cultureinitiatives
• Use of TRIR as a KPI in place
ofLTIR
• Board endorsement of people
strategy with continued investment
in learning, career development
and leadership development
• Rollout of leadership development
programme and manager
development programme
• Gender and ethnicity pay review
• Continued support for employee
share ownership
• Oversight of risk appetite for all risks and approval
of the principal and emerging risks andrisk
appetite for inclusion in the 2024 AnnualReport
• Continued active dialogue with our shareholders
and investment community
• All AGM resolutions approved in the range
of92.54% to 99.99%
• Rollout of updated Code of Conduct to
theorganisation
• Board oversight of functional support to
thebusiness operations
• Publication of annual Modern Slavery Statement
• Focus areas from 2024 internal Board
evaluationidentified
• Updated Committee terms of reference published
on website
• Oversight of the Audit Committee’s preparation
for Provision 29
Key
stakeholder
groups
considered
CU
I
E
S
CO CU
I
E
S
CU
I
E
S
I
E
CU
I
E
S
CO
Links to
strategy
Insight into the boardroom
Key stakeholder groups
CU
Customers
I
Investors
E
Employees
S
Suppliers
CO
Communities
An insight into the breadth of matters discussed by the Board during the year are set out below:
rotork.com Rotork Annual Report 2024103
Corporate governance report continued Strategic report Corporate governance Financial statements
A focus on culture
The Board recognises the
importance of there being a
healthy and positive culture
within Rotork, which guides
responsible and ethical decisions,
actions and success.
The Board is responsible for defining and setting
Rotork’s culture from the top and leading by
example. The Board also takes an active interest
in ensuring that Rotork’s desired culture is
properly promoted throughout the Company
and monitors this as part of its considerations at
Board meetings. Our purpose, values and
cultural DNA are embedded across the business
and underpin our business model. Our new
cultural DNA has evolved from our previous
values and will guide us forward. Our cultural
DNA is that: we value our customers, we grow
together and we win as a team. These principles
will shape how we lead, grow and engage. They
are fundamental to the way we work with our
employees, customers, suppliers and other
stakeholders. They also guide the way that we
engage with the wider community.
The Board aims to ensure that our values are
embedded and integrated into decision making
and that policies and procedures, such as the
Code of Conduct and our Anti-Bribery and
Corruption Policy, maintain the behaviours we
expect as part of our culture. Where this is not
the case, the Board and management team take
appropriate action. This is achieved through
updates to the Board on, for example, compliance
matters and reports received through our ‘Speak
Up’ whistleblowing helpline. The regular employee
engagement surveys also help evaluate the
implementation of our values and culture.
We ensure our people, policies and systems are
aligned with our values, which were selected
byour people and are important in creating a
culture that we can all be proud of. These values
are aimed at engaging and motivating colleagues
and protecting their rights. We strive to provide
fair and equitable treatment, as well as
opportunities to grow, learn and progress.
The Board is satisfied that the Company’s
purpose, values, strategy and culture are aligned
and promote the long-term success of the
Company, generating and protecting value
toshareholders and other stakeholders.
Our purpose
Keeping the world flowing for future generations,
through providing innovative, high-quality,
engineered solutions and services for our
customers, helps guide our culture alongside our
values. We put quality and service at our heart.
Our Code of Conduct, which applies to all
permanent employees, temporary workers and
contractors, sets out the principles that underpin
and guide the way we conduct business. A full
version of the Code of Conduct is published on
our corporate website at: www.rotork.com/en/
sustainability/esg-reports-and-policies/rotork-
code-of-conduct.
Rotork Annual Report 2024 rotork.com104
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A focus on culture continued
How the Board monitors culture Cultural indicators
Health and safety
We have a zero harm vision which applies to our broader agenda of health and
safety, environment and product safety.
• 0.22 total recordable incident rate for 2024 (2023: 0.26).
• 0.08 lost time injury rate for 2024 (2023: 0.08).
Direct employee engagement
Tim Cobbold, who was Rotork’s designated Non-executive Director for
Workforce Engagement throughout 2024 (prior to the role being undertaken
by Vanessa Simms from 1 January 2025), brought the employee voice into
theboardroom through sharing updates on his engagement with employees.
Thisis supplemented by Rotork site visits conducted by other non-executive
directors during the year.
• Eight director site visits completed during 2024, two of which were whole
Board tours, one of the research & development facility in Bath and one of
thefacility inRochester (NY). In addition, individual non-executive directors
completed six sitevisits.
Employee engagementsurvey
During 2024, we introduced an externally managed engagement survey
partnering with a third party to enable us to compare engagement with our
peers. Feedback from the survey was shared and teams are working on action
plans to drive improvements relevant to them ensuring both ownership and
accountability. Theresults were reviewed by the Board, alongside a summary
of key actions tobuild improvements.
• 80% employee survey participation rate (2023: 79%).
Annual deep dive review of Rotork’s
people, culture and social strategies
Covering workforce insights, organisational effectiveness and areas such as
progress on diversity and inclusion, leadership and engagement, employee
mental health and well-being, community engagement and support to
external charities.
• 7.14/10 employee rating of Rotork as a place to work in 2024.
Compliance with policies and
procedures
With the assistance of its Committees, the Board oversees the effectiveness
ofanumber of its policies, for example the Code of Conduct, Anti-Bribery
andCorruption, Modern Slavery and Supplier Code of Conduct.
• Employees must undertake mandatory training, including Code of Conduct
and Speak Up, with training completion rates tracked. All employees must
sign an annual confirmation of compliance.
‘Speak Up’ whistleblowinghelpline
Enables anonymous reporting of improper behaviour to be investigated and
appropriate action taken where necessary.
• The number of reports made through the whistleblowing hotline, any trends,
andthe outcomes of investigations are monitored and reported to the Board.
Diversity and inclusion
The Nomination Committee annually reviews the Company’s policy on
diversityandinclusion, its objectives and linkage to Company strategy,
howithas been implemented and the progress on achieving theobjectives.
• 44.44% Board gender diversity as at 31 December 2024
1
.
• 22.22% Board ethnic diversity as at 31 December 2024
1
.
• 51% Early careers programme diversity in terms of gender and ethnicity.
• 17.6% mean gender pay gap in favour of females.
1 From 1 January 2025, after Tim Cobbold had stepped down from the Board on 31 December 2024, the Board gender diversity was 50% and the Board ethnic diversity was 25%.
rotork.com Rotork Annual Report 2024105
Corporate governance report continued Strategic report Corporate governance Financial statements
Our Section 172(1) statement
The Board confirms that during 2024 it has acted in the way that it considered, in good faith, would be most likely to
promote the long-term success of the Company for the benefit of its members as a whole, and in doing so has had regard
tothe matters set out in Section 172(1)(a) to (f) of the Companies Act 2006.
Board engagement with stakeholders
The Board engages directly with our employees
and shareholders; however, it is also kept
apprised of the engagement with other
stakeholder groups through a combination
ofreports from the executive directors and
members of the Rotork Management Board
tounderstand the views of key stakeholders on
day-to-day operations. The information set out
below and on pages 108 to 111 outlines the
ways in which the Board and the Company have
engaged with key stakeholders during the year,
and the outcomes of that engagement.
Methods of engagement used
bytheBoard
The main methods used by the Board to perform
its duties include:
• Oversight of our purpose, strategy, values,
and culture.
• Consideration of key risks to the business
andmitigating actions taken.
• Oversight of employee well-being
andresourcing.
• Dedicated section within Board papers
setting out the likely impact of the proposed
recommendation on relevant stakeholders.
• Review of engagement undertaken
bytheRotork Management Board and
Boardmembers.
Whilst it is not always possible to meet the
preferences of all stakeholders (whose interests
may diverge), the Board aims to ensure that all
relevant factors are considered before a decision
is taken.
Other examples of how the Board has
considered stakeholder interests and Section
172(1) matters are included within the section
detailing how the Board monitors culture on
pages 104 to 105 and employee engagement
onpages 112 to 113.
How the Board considered stakeholders’ interest as part of their key Board activities during 2024
Strategy and sustainability
• Consideration of the balance of differing stakeholders’ needs and expectations in delivering long-term sustainable value.
• Review of governance and oversight of Rotork’s sustainability strategy in the long-term interests of stakeholders.
Financial
• Investor engagement around full-year, half-year and trading updates, given interest in good governance to protect the long-term interests of all stakeholders.
• Consideration of employees’ interests.
Operational
• Consideration of stakeholders’ interests in the drive to improve efficiency and ultimately deliver an enhanced customer experience in a safety-conscious environment of ‘zero harm’.
• Consideration of geopolitical risks that impact the supply chain to protect stakeholders’ long-term interests.
People and organisational
• Employee engagement by management and taking account of the concerns and views expressed by our colleagues.
• Engagement with employees by our designated Non-executive Director for Workforce Engagement and all other non-executive directors.
• In setting the tone from the top, the consideration of employees’ interests and understanding the value of having a diverse workforce.
Risk, governance, legal, compliance
andinvestor relations
• Review of the status of key risks to the business and mitigating actions taken to protect stakeholders’ long-term interests.
• Consideration of stakeholders’ interests while supporting Growth+ strategy, including direct engagement with shareholders to seek their views.
• Consideration of employees’ interests within the business and within the supply chain relating to preventing modern slavery.
• Consideration of best practice governance procedures to protect long-term interests of all stakeholders.
Rotork Annual Report 2024 rotork.com106
Corporate governance report continued Strategic report Corporate governance Financial statements
Our Section 172(1) statement continued
Section 172(1) factor Relevant disclosure
Annual Report
page number
a. The likely
consequences
ofany decision
inthe long term
• Chief Executive Officer’s Statement
• Chair’s Statement
• Business model
• Key performance indicators
• Investment case
• Insight into the boardroom
• Engaging with our stakeholders
• Sustainability Review
See page 10
See page 8
See page 6
See page 14
See page 16
See page 103
See page 106
See page 34
b. The interests of
the Company’s
employees
• Engaging with our stakeholders
• People and culture
• Diversity and inclusion
• Non-Financial and Sustainability Information Statement
• Chair’s Statement
• How the Board monitors culture
• Directors’ Remuneration Report
See page 106
See page 58
See page 59
See page 86
See page 8
See page 104
See page 131
c. The need to foster
the Company’s
business
relationships
with suppliers,
customers
andothers
• Customer value
• Sustainability Review
• Supply chain management
• Human rights and modern slavery
• Engaging with our stakeholders
• Making a positive social impact
• Non-Financial and Sustainability Information Statement
• Chair’s Statement
• Insight into the boardroom
See page 20
See page 34
See page 47
See page 50
See page 106
See page 57
See page 86
See page 8
See page 103
Section 172(1) factor Relevant disclosure
Annual Report
page number
d. The impact of
the Company’s
operations on the
community and the
environment
• Engaging with our stakeholders
• Sustainability Review
• Making a positive social impact
• Task Force on Climate-related Financial Disclosures
• Non-Financial and Sustainability Information Statement
• Chair’s Statement
• Safety and Sustainability Committee Report
See page 106
See page 34
See page 57
See page 79
See page 86
See page 8
See page 117
e. The desirability
of the Company
maintaining a
reputation for
high standards of
business conduct
• Refreshed Code of Conduct
• Business model
• Engaging with our stakeholders
• Risk management
• Making a positive social impact
• Non-Financial and Sustainability Information Statement
• Chair’s Statement
• Our governance framework
• Conflicts of interest
• Division of responsibilities
See page 160
See page 6
See page 106
See page 67
See page 57
See page 86
See page 8
See page 98
See page 101
See page 100
f. The need to act
fairly as between
members of
theCompany
• Relations with shareholders
• Engaging with our stakeholders
See page 108
See page 106
rotork.com Rotork Annual Report 2024107
Corporate governance report continued Strategic report Corporate governance Financial statements
Our Section 172(1) statement continued
Engaging with our stakeholders
We engage proactively with
allour key stakeholder groups
in the knowledge that our
long-term success is dependent
on how we work with all
ourstakeholders.
Our policy is to understand our stakeholder
views, and to deal with issues with integrity
should they arise. Like any business, we
sometimes have to take decisions that adversely
affect one or more of these groups and, in such
cases, we always look to ensure that those
impacted are treated fairly.
This section describes our engagement with
stakeholders and the Board’s engagement with
stakeholders and forms part of our Section
172(1) Statement, set out on page 9 of the
Strategic Report.
Stakeholder group and relevant
Section 172(1) clause Stakeholder’s material issues Why we engage How we engage
CU
Customers
Our customers include those in
theoil and gas, water and power,
and chemical, process and
industrial sectors in more than
170countries globally.
s.172(1)(c) The need to foster the
Company’s business relationships
with suppliers, customers
andothers.
s.172(1)(e) The desirability
ofthecompany maintaining a
reputation for high standards
ofbusinessconduct.
• Reliability and specification
compliance of Rotork’s products.
• Clear and proactive
two-waycommunication.
• Product and service sustainability
andsafety challenges.
• Innovation and cutting-edge solutions.
• Dedicated lifecycle service and support
and best in class customer service
support throughout the life of
Rotork’sproducts.
• Receiving the highest standard of
customer order journey and Rotork’s
responsiveness and clarity on delivery
time frames.
• Digitalisation and the need for more
data from end-user assets.
• Our customer value vision is to
createa seamless and positive
customer experience.
• Placing customers at the heart of
ourbusiness is key to delivery of
ourGrowth+ strategy, the success
ofwhich is based on our ability to
understand, support and respond
toour customers’ and potential
customers’ needs.
• We believe that by putting the value
we provide to our customers at the
forefront, we will earn a greater
share of our customers’ spend based
on our wide portfolio offerings.
• To ensure the best support is
provided to customers from the
earliest stages of our relationship.
• Our teams liaise directly with our customers, and potential customers, with the
aim of providing them with an improved customer experience. We also engage
with customers globally through our expert field service engineers.
• Rotork Service (formerly called Rotork Site Services) team provides comprehensive
service solutions throughout a product’s lifecycle. We are streamlining our
business processes to allow us to quote quicker and be more responsive to our
customers’ needs.
• In order to serve a wider variety of customers and markets we also supply to our
customers via our channel partner network, which includes resellers and distributors.
• Our global supply chain programme aims to improve delivery and lead times
andto respond quickly to any supply chain issues.
• Where applicable, our online portals enable us to provide information about
Rotork Service and regular information updates to our customers.
• We work with our customers to ensure we develop the right products and services
for future needs by understanding evolving market trends and customer needs.
• We has a feedback platform, within which we encourage customers to provide
their feedback which is utilised internally by our teams.
• We engage with our customers through our Voice of Customer surveys
andregular feedback received from our sales team.
I
Investors
Rotork’s shareholders own the
business and they range from large
institutional investors to private
individual (including employee)
shareholders. All Rotork’s
shareholders are treated fairly and
have equal access to both Company
information and our Board of
directors. We also engage with the
investment community, advisers
and potential shareholders.
s.172(1)(f) The need to act fairly
between members of the Company.
• Delivery of the Growth + strategy that
aligns with Rotork’s vision, purpose,
values and culture.
• Creation of long-term and
sustainable shareholder value
andclear reporting on the
Company’sperformance.
• A return on investment, a clear
anddisciplined capital allocation
framework and a progressive
dividend policy.
• Meaningful engagement with the
Board and the upholding of good
governance practices.
• Reporting to investors on the role
Rotork is playing in driving the
transition to a cleaner future.
• The Board understands and values the
importance of engaging with our
shareholders and potential shareholders
to ensure that they are kept updated on
the Company’s performance, activities
and investment case.
• The two-way engagement enables the
Board to take shareholder views into
account within its wider strategic
decision making.
• We actively engage with the investment community through regular results and
reporting, press releases, investor events, one-to-one meetings (either in person or
virtually), roadshows, site tours, our corporate website and our AGM.
• Engagement is primarily led by our executive directors and Investor Relations Director.
• Ben Peacock (who became Rotork’s Chief Financial Officer in March 2024) met with
investors (both current and potential) and the investment and analyst community.
• The Board Chair hosted a number of face-to-face and virtual meetings with
investors during the year.
• Our 2024 AGM was held in Bath (UK) and provided an opportunity for
shareholders to interact with the Board and have any questions answered.
AllBoard members standing for election or re-election attended the 2024
AGMin person, with Kiet Huynh delivering a presentation to shareholders.
• The Board Chair and Chairs of each of our Board Committees welcome engagement
with shareholders on any matters within their remit.
• We host an annual engagement webinar for our private individual investors, which
includes a moderated Q&A session. The 2024 webinar was hosted by Kiet Huynh
and our Investor Relations Director.
• For our employee shareholders, we also offer internal communication channels.
E
Employees
We have around 3,500 employees,
working worldwide through a
network of offices and
manufacturing facilities.
s.172(1)(b) The interests of the
Company’s employees.
• Equality, fairness, recognition and
reward in the workplace.
• Clear communications and
engagement on business changes
that may affect them.
• Career development and progression.
• A continued focus on well-being,
health and safety and the
workingenvironment.
• Our people embody our culture and
values, which are critical for the
continued implementation of our
Growth+ strategy.
• Safety of our people remains our
priority and our vision for health
andsafety is to achieve zero harm.
• We ensure our employees are
informed about business changes
that may affect them.
• We continue to develop, attract
andretain talented people.
• We communicate with our employees using a variety of channels that promote
open discussion and feedback. These include our employee engagement survey,
employee forums, town halls hosted by our Chief Executive Officer and other
members of the senior management team, a colleague recognition portal, our
Company intranet, the use of online collaboration tools, factory and product
tours, annual personal development reviews and our working@rotork
emailchannel.
• Tim Cobbold, who was Rotork’s designated Non-executive Director for
Workforce Engagement during 2024, brought the views of employees into
theboardroom. This included any direct suggestions that Tim had received
viathe Board’s engagement activities. Vanessa Simms has continued this since
1January 2025, when she took over from Tim as the designated Non-executive
Director for Workforce engagement.
Rotork Annual Report 2024 rotork.com108
Corporate governance report continued Strategic report Corporate governance Financial statements
Our Section 172(1) statement continued
Outcomes of our engagement during 2024 Board engagement
Priorities for engagement
during 2025
Measurements/
metrics Further information
CU
• From customer engagement we appreciate that product downtime is a key customer concern and area where
Rotork can provide support for customers. Rotork Service, our global service network that includes our Reliability
Services and Connected Services programmes, differentiates us from our competitors. The Connected Services
programmes include our Intelligent Asset Management predictive analytics system, which helps our customers
reduce unplanned downtime.
• We have made good progress on our Customer Value pillar of our Growth+ strategy. We are implementing
andintegrating common systems and processes throughout the Group. This will improve efficiency and deliver
improved lead times and a better customer experience.
• Following the feedback from the Voice of Customer surveys, a Customer Responsiveness Project was initiated
toestablish a proactive and high-quality customer responsiveness culture within Rotork and make us easier
todobusiness with.
• Following the Voice of Customer feedback, the Customer Service Programmes team has implemented numerous
different languages for our Intelligent Asset Management reports which better supports our global audience.
• We have stepped up our customer service training with ‘Brilliant Basics’ to our customer service, sales force
andother functions. This global training started in 2024 and will continue in 2025.
• We recently launched modular electro-hydraulic actuators and IQT/IQTF battery backup variant, which support
ourcustomers’ important decarbonisation initiatives and have been well received.
• Our ‘Achieving Customer Excellence’ programme has driven a more streamlined production where the programme
is implemented. The rollout of which is ongoing.
• We have made progress on reducing lead times across our assembly sites to ensure customers receive their
ordersexpeditiously.
• We launched our Integral Ethernet-enabled actuators in 2024 to meet customer needs for enhanced networking
anddata acquisition.
• Some of our Board members, alongside many of the
senior team, attended the Valve World exhibition,
which took place in Düsseldorf (Germany), where
theyengaged directly with our customers and
otherstakeholders.
• Customer engagement, satisfaction and projects to
improve the customer experience are key topics in
Boarddiscussions.
• The Business Transformation Director presented the
business transformation initiatives to the Board in
theJune 2024 meeting. The Board discussed the
programme and agreed the next steps under it.
• Continue with the
implementation and investment
in the business transformation
programme, which will
extendto more of our sites
during 2025.
• Continue to embrace digital
technology to drive
increasedefficiency.
• Continue to focus on enhancing
the customer experience
through avariety of
customer-focusedinitiatives.
• Global customer
service training with
99% completion
• Invested £13.4m
inresearch and
development
in2024
• Silver Award
underBritain’s
MostAdmired
Companies 2024
• Recognised as one
ofthe World’s
BestCompanies
– Sustainable Growth
Chief Executive Officer’s
Statement: page 10
Customer Value: page20
Sustainability Review:
page 34
Case studies
and benefits our
customersexperienced:
www.rotork.com/
en/casestudies
I
• In 2024, our Chair, Chief Executive Officer, Chief Financial Officer and Investor Relations Director attended over 100
meetings with over150 separate institutions globally. 2024 saw an increased number of meetings with institutions based
in Continental Europe and the Middle East.
• Rotork returned £50m to shareholders via a share buyback programme, which ran from March 2024 to December2024.
• Continued with the delivery of a progressive dividend policy, with the total dividend for 2024 being 7.75p per ordinary
share, representing a7.6% year-on-year increase.
• The Growth+ strategy is delivering with revenue 8.2% higher year-on-year on an OCC basis and the Group order intake
also increasing by 6.1% year-on-year on an OCC basis.
• The 2024 AGM saw all resolutions passed, with votes in favour ranging from 92.54% to 99.99%.
• We launched our new corporate website in 2024.
• Our Chair, Chief Executive Officer, Chief Financial
Officer and Investor Relations Director regularly
communicate with existing and potential shareholders.
• The 2024 AGM provided an opportunity for the Board
tointeract with shareholders (including individual and
employee shareholders) and to answer any questions
theymay have.
• The views expressed by shareholders, potential
shareholders and the investment community are shared
with the Board at Board meetings and with the relevant
Committees, enabling the Board to take these views
intoaccount in its wider decision making. The Board
understands shareholders’ need for return on investment
and approved progressive interim and final dividends
based on the Company’s profits.
• Market and shareholder perspectives studies were
conducted, with the feedback presented to the Board
forconsideration.
• Continue to offer an extensive
investor engagement
programme, covering our full
range of shareholders. This will
continue to include further
information on the
implementation of our Growth+
strategy and provide forums
within which investors can have
their questions answered and
views heard.
• Continue to provide clear reporting
on the Company’s performance.
• Consultation on a new Directors’
Remuneration Policy due in 2026.
• Over 100 investor
meetings with
over150separate
institutions globally.
• Subject to
shareholder
approval of the
2024 final dividend,
the total dividend
for 2024 will be
7.75p per
ordinaryshare.
• £50m cash returned
during the
sharebuyback
Chief Executive Officer’s
Statement: page 10
Financial Review: page30
Highlights of 2024:
page 1
The value we created
in2024: page 7
Investment case: page 16
Sustainability Review:
page 34
Corporate Governance
Report: page 90
Share register
information: page 212
E
• During 2024, we introduced an enhanced employee engagement survey in partnership with a third-party provider,
enabling us to compare our employees’ responses with our peers and measure engagement rather than
satisfaction. Feedback from the survey was shared and teams are working on actions plans to drive improvements
relevant to them ensuring both ownership and accountability.
• We are evolving our existing culture and as part of this we have engaged with 800 employees across 27 countries
to understand our current culture and the vision for the future.
• We maintained our ‘Fair Pay’ commitment and are accredited as a Living Wage Employer by the Living Wage Foundation.
• We continued our support of World Mental Health Day, signed the Global Mental Health Pledge and participated in
International Well-being Week and we have approximately 100 Mental Health First Aiders globally.
• We launched training on neurodiversity at work and managing neurodivergent colleagues.
• Our learning management system continues to provide 182 on-demand courses, 50 of which are in multiple languages.
• We continue to enhance senior leaders’ skills, with nearly 100 leaders completing the Leadership Growth
programme and relevant leaders undertaking a Business Manager programme.
• Focusing on those in the early stage of their careers, we supported our inaugural group of tenapprentice field
service engineers, who have progressed through The Rotork Service Academy Programme. Our first cohort of
graduates completed the Graduate and Internship Programmes, with five new graduates joining in 2024.
• Our Board members actively engaged with employees
across the Company:
— Dorothy Thompson engaged with employees to
understand our current culture and how it should
evolve to support growth.
— Tim Cobbold, being the designated Non-executive
Director for Workforce Engagement during 2024,
brought the voice of employees to the boardroom.
— Vanessa Simms met with the Customer
Serviceteam.
— Karin Meurk-Harvey met with our graduates as
part of our Graduate Programme.
— Kiet Huynh hosted two all-employee webinars.
• Board reports include updates on
employeeengagement.
• Continue to ensure that our
colleagues are informed of our
Growth+ strategy and their role
in helping to deliver it.
• Continue to progress with our
cultural initiatives to enhance our
culture to support the Company’s
long-term success.
• Continue to progress action
plans following the employee
engagement survey results.
• Conduct another engagement
survey during 2025 to
understand latest levels
ofemployee engagement.
• Employees involved
in cultural
initiatives:800
• Employee
engagement survey
response rate:80%
• Rotork as a place
towork: 7.1/10
• TRIR 2024: 0.22
• Board site visits: 8
• Enrolment to
Graduate
andInternship
Programme: 5
in2024 cohort
(19in total)
Workforce engagement
inaction: page 112
Focus on culture: page104
Gender Pay Gap Report:
page 60
Diversity statistics:
page 61
People section in
Sustainability Review:
page 58
rotork.com Rotork Annual Report 2024109
Corporate governance report continued Strategic report Corporate governance Financial statements
Our Section 172(1) statement continued
Engaging with our
stakeholderscontinued
Stakeholder group and relevant
Section 172(1) clause Stakeholder’s material issues Why we engage How we engage
S
Suppliers
Our suppliers include all third
parties that provide goods or
services to the Group. This includes
all suppliers, contractors, and
consultants. We also appoint
brokers and engage corporate
advisers across a range of
professional disciplines.
s.172(1)(c) The need to foster the
Company’s business relationships
with suppliers, customers
andothers.
s.172(1)(e) The desirability
oftheCompany maintaining a
reputation for high standards
ofbusiness conduct.
• Creating and maintaining mutually
strong business relationships, via fair
procurement, ordering and contracting
processes and timelypayments.
• Clear and accessible information
about our required technical
specifications, guidance, policies and
standards. For example, the Supplier
Code of Conduct and our terms and
conditions for the purchase of goods
and supply of services to us.
• Working together in a more
collaborative way. For example,
newproduct innovations, more
economically efficient designs and
achieving sustainability goals.
• A commitment to ensuring that we
remain mutually vigilant to the risks
related to modern slavery and human
trafficking inthe wider supply chain.
• Our suppliers play an integral role in our ability to continue to deliver
products and services to our customers. We generally operate an
assembly-only philosophy, meaning that the majority of the components
inour products come from our suppliers.
• We value strong working relationships with our suppliers and regular
engagement ensures that these relationships are underpinned by clear and
open communication. This facilitates a two-way understanding of issues that
may arise and ease with which we can work together to solve them.
• Effective engagement with direct suppliers helps to facilitate a coherent supply
chain, whilst also improving our cash conversion and inventory management.
• We work closely with suppliers in relation to our scope 3 emissions and
support them in their own sustainability journeys.
• Our products can have complex certification and compliance requirements.
Granular engagement with suppliers ensures that they understand these
requirements and deliver components to our specifications.
• We constantly research and develop new or enhanced products.
Whereappropriate, we engage with our suppliers to driveinnovation
inacollaborative manner.
• We carry out on-site audits of key and high-risk suppliers, which focus on
their social, environmental, and ethical conduct, alongside their technical
andoperational capabilities. The audits form part of the Supplier Risk and
Resilience Framework.
• We engage centrally with our
strategicsuppliers with our regional
and site level supply chain and
procurement teams providing
operational level engagement.
• To help create better quality
partnerships with suppliers, we
provideimprovement roadmap tools
tothem that clarify Rotork’s processes
and ways of working.
• We continue to engage with key
suppliers in relation to our important
net-zero target by 2045 for scope 3.
Weare guiding suppliers to improve
their environmental performance
through awareness letters, meetings
and information on how to set
andvalidate their own emission
reduction targets.
• Our Speak Up Policy applies to our
suppliers and encourages suppliers to
raise concerns with us and outlines our
commitment to conduct our business
with openness, integrity and fairness.
CO
Communities
Our communities are made up
bythose who live in areas where
we have a physical presence, such
as local residents, businesses,
schools, charities
andsurroundings.
s.172(1)(d ) The impact of the
Company’s operations on the
community and the environment.
• Understanding the differing
needsand priorities of our local
communities and how we can
bestsupport them.
• Provide local employment
opportunities and investment
tohelpcommunities thrive.
• Create positive environmental
andsocialimpact enabling a
sustainable future.
• Our purpose is ‘keeping the world flowing for future generations’.
Thisrecognises the role we play in making our world a greater place
toliveand the role we play in helping improve our communities.
• One of our sustainability framework pillars is to make a positive impact
tosupport thriving, fair and resilient communities and operate responsibly
within them.
• Through our charity fundraising, our sites are able to make donations
directly into the local community in which they operate to seek to make
adifference.
• We make a positive social impact by being a good corporate citizen and
arepleased to pay our taxes to contribute to society in the countries in
which we operate.
• We understand the importance in recruiting and retaining diverse talent
from our local communities.
• We engage positively with our local
communities via investing in job
creation, using local talent and supply
chains where viable, paying our taxes
and helping to support the wider
communities in which weoperate.
• We consider the social impacts of our
business decisions carefully, including
potential social impacts.
• We offer support through the Rotork
Benevolent Support Fund, charitable
giving, volunteering at community
projects andraising mental health
awareness. Rotork currently has two
global charity partnerships, with Pump
Aid and Renewable World. In addition,
charity committees at Rotork’s sites
support causes that are expressed as
important to employees locally.
Rotork Annual Report 2024 rotork.com110
Corporate governance report continued Strategic report Corporate governance Financial statements
Our Section 172(1) statement continued
Outcomes of our engagement during 2024 Board engagement
Priorities for engagement
during2025
Measurements/
metrics Further information
S
• We continued to undertake supplier audits against our Supplier Code of Conduct, which led to certain health and
safety improvements of some suppliers.
• We engage with applicable suppliers at the design stage of our products’ manufacture. Certain suppliers simulate
casting and plastic moulding processes and provide feedback, which is used by our engineering teams to refine the
component designs, and for the supplier to design tooling that produces a high yield. This two-way engagement at
an early stage reduces the likelihood of inherent design defects supporting the operational success of ourproducts.
• We continuously review our global supply chain and operations to ensure that we are working to prevent modern
slavery in these areas.
• During 2024, actions to reduce carbon emissions were added to the performance review agenda with our strategic
suppliers. Rotork’s Supplier Risk and Resilience Framework was updated to incorporate suppliers’ actions to reduce
carbon emissions.
• We continue to forecast our component requirements and proactively work with our supply chain partners to
reduce our supply chain disruption risk.
• We work with suppliers to drive quality and to continually improve manufacturing processes that minimise the risk
of in-field product failure.
• Interaction with suppliers remains an important topic
in Board discussions (when relevant) especially in
regions experiencing, or at risk of, geopolitical
disruption and around creating a resilient supplier
base. The Board receives updates on suppliers from
the executive directors and RMB members.
• In March 2025, the Board was updated on the
prevailing procedures and policies in place to prevent
and detect modern slavery and human trafficking
within our supply chain. As part of this, the Board
approved the 2024 Modern Slavery Statement,
whichis available on our corporate website.
• In October 2024, the Safety and Sustainability
Committee reviewed the current Supplier Code of
Conduct commitments and competitor practices and
discussed further planned enhancements to the Code.
• Rotork’s progress against scope 3 emissions reduction
target and supplier engagement strategy on
sustainability more widely were reported to the
Safetyand Sustainability Committee.
• Continue to strengthen
relationships with existing and
new suppliers and increase the
number of our suppliers
engaged under our long-term
supplier agreements, to mitigate
against the supply chain security
points from Rotork’s perspective.
• Continue with our supplier
engagement programme related
to the measurement of their
emissions and sharing such data
with us. We are targeting that
25% of suppliers (by estimated
emissions) will have set
science-based targets by 2027.
• Continue to develop the
application ofour Supplier
Riskand Resilience Framework.
• Provide global e-learning on
ourSupplier Code of Conduct.
• Commence a global vendor
performance rating project
(initially with strategic suppliers)
to champion meaningful
relationships with suppliers and
drive continual improvements.
• Supplier due
diligence
assessments
undertaken: 162
• Suppliers who
completed our
moduleson supplier
sustainability survey
platform: 816
• We measure
eachsupplier’s
on-timedelivery
• Spend with external
suppliers: £364m
Divisional Review:
page24
Sustainability Review:
page 34
Our Supplier Code of
Conduct: www.rotork.
com/en/about-us/terms-
and-conditions/suppliers/
supplier-code-of-conduct
Rotork’s 2024 Modern
SlaveryStatement:
www.rotork.com/en/
investors/modern-
slavery-statement
Code of Conduct:
www.rotork.com/en/
sustainability/esg-
reports-and-policies/
rotork-code-of-conduct
CO
• We have supported Pump Aid for many years. In 2024, we took meaningful steps to deepen our ongoing
relationship with the charity, aligning with Rotork’s purpose of keeping the world flowing for future generations.
We conducted a series of workshops with Pump Aid, bringing together diverse teams to better understand its
challenges and explore ways our expertise, technical, strategic and other skills and resources could help address
itschallenges. These engagement sessions fostered mutual understanding, revealing synergies between our
organisations, and built a strong foundation for our future collaboration. During 2025, we are confident that the
groundwork laid as a result of the engagement in 2024 will enable us to develop plans that strengthen this
relationship and support Pump Aid’s vital work in the future.
• We endeavour to make a positive social impact across our global operations. Some examples include installation
ofa solar power plant at an emergency care and recovery centre in India, a donation to a school of disabled
children in South Africa, providing school furniture in Malaysia and a donation to a local shelter for vulnerable
people in Sweden. We sponsored Team Bath Racing Electric, a team from the University of Bath, to design and
build an openwheel racing car, which competed at the internal Formula Student competition.
• In India, we provided financial donations in support of freely accessible vaccination drives related to women’s
health matters, provided a digital radiography system that was needed at a community hospital, completed
maintenance projects in two government schools, sponsored midday meals at a government school, provided
school furniture and provided donations to support a programme to upskill lower income and government college
students for greater employment opportunities.
• The Safety and Sustainability Committee assists the
Board in overseeing the execution of the Company’s
sustainability and social strategy and monitoring
itsprogress.
• The Safety and Sustainability Committee received
updates from the Chief Human Resources Officer on
the various social initiatives and actions across the
Group. These covered areas such as employee
well-being and mental health, charity support and
community engagement.
• The Committee reviewed and supported the 2024
activities of the Rotork Benevolent Support Fund,
which offers support to employees and ex-employees
and their families facing financial hardship.
• Rotork’s Board maintains an active interest in the
health and safety aspects of the operational business,
with the Chief Executive Officer providing regular
reporting on health and safety to the Board.
• The Safety and Sustainability Committee Chair
updates the Board on the key issues covered
following each Committee meeting.
• Continue to ensure our
charitable partnerships have a
positive social impact, aligned
toour purpose and the UN
Sustainable Development Goals
we have identified to support.
• Continue to support our
employees incontributing to
local causes close to their hearts.
• Continue to help drive and
demonstrate progress in
ourbroader safety and
sustainability agenda.
• Continue to strengthen the
relationship with Pump Aid
andsupport its vitalwork.
• Donations to our
two global partner
charities in
2024:£160,000
• Total corporation
tax paid in
2024:£39m
Sustainability Review:
page 57
Work with Pump Aid and
Renewable World: pages
62 and 63
Sustainability Reports
and policies: www.
rotork.com/en/investors/
diversity-and-inclusion
Making a positive impact
section of our website:
www.rotork.com/en/
sustainability/social-impact
rotork.com Rotork Annual Report 2024111
Corporate governance report continued Strategic report Corporate governance Financial statements
Pursuant to his role as the Non-executive Director
for Workforce Engagement, Tim helped to
ensure our employees’ perspectives were
represented in the Board’s decision-making
process during 2024 by bringing their views
andexperiences to the boardroom and ensuring
that colleagues’ experiences and opinions were
considered as Board discussions took place
anddecisions weremade.
Each year, a structured programme of activities
involving as many Board members as possible is
undertaken. The aim is to ensure sufficient direct
engagement between Board members and
colleagues outside the line of management, to
create opportunities for feedback and provide a
voice for any concerns to the Board, to deepen
their understanding of the employee perspective
and help them monitor how Rotork’s culture
remains embedded within the organisation
amongst our employees.
The Non-executive Director for Workforce
Engagement is responsible for developing the
programme and reviewing progress during the
year with the Chief Executive Officer and the
Chief Human Resources Officer. During 2024,
Tim provided ongoing updates to the Board and
Vanessa is already doing the same during 2025.
In 2024, our approach was to increase
engagement between the Board and employees
on topics relevant to the Company and employees
and direct face-to-face communication with
employees in their work environment. Considering
the global nature of Rotork’s workforce and the
broad range of roles within that across all levels
in the organisation, the framework for 2024
comprised three streams:
• Topic-based structured meetings/engagement
with colleagues conducted online to enable
broad global participation.
• Face-to-face meetings with employees in
their work environment to allow for more
personal interactions.
• A review of data, including employee survey
outcomes and whistleblowing.
Topic-based workforce engagement
To align with the Company’s focus on Customer
Value and culture, we conducted virtual sessions
with employee groups from multiple locations,
encompassing various seniority levels and disciplines.
In September, our Board Chair, Dorothy Thompson,
engaged with employees regarding our cultural
initiatives. This engagement provided further
insight to the Board’s ongoing oversight of
culture within the Company. The objective was
togather employee perspectives and feedback
on their participation in the overall process and
to solicit their ideas on how Rotork’s culture
could evolve to support long-term growth.
Thesession revealed that employees universally
found the experience positive and appreciated
the transition from top-down to bottom-up
engagement. They also observed that Rotork’s
culture is already evolving positively under Kiet
Huynh’s leadership as Chief Executive Officer and
the guidance of the Rotork Management Board.
Similarly, Vanessa Simms met with the team
focused on Customer Responsiveness, a key
component of the Customer Value pillar within
the Growth+ strategy. In 2024, there has been a
significant emphasis on training and development
to enhance the skills of our customer service
teams across the Company. Participants in this
session included both the training programmes’
developers and the training recipients.
Theoutcomes were impressive:
• Aligned strategy and engaged team: clear
understanding of how Business Transformation’s
focus on Customer Responsiveness supports
Growth+, boosting team motivation.
• Effective training and expansion: achieved a
99% training completion rate with positive
feedback, leading the team to recommend
anorganisation-wide rollout of training and
development initiatives in this area.
• Strong KPIs and process enhancements:
implemented robust dashboards to track
improvements and multiple process changes
to enhance service quality.
In addition, recognising the importance of
developing early career talent, our non-executive
director Karin Meurk-Harvey met with a cross-section
of employees at various stages of our Graduate
Recruitment Programme – from those who had just
started the programme to those concluding their
third year. This session demonstrates that the
programme is successfully equipping future talent
with the skills and development needed for
workplace success and that our graduates were
fullymotivated andengaged.
Face-to-face employee engagement
withour Board
Throughout 2024, our Board members actively
engaged with employees across the Company
through face-to-face interactions. At the Board’s
annual strategy session at our facility in
Rochester (USA), the Board toured the facility and
engaged directly with employees from a variety
of functions including sales, customer service,
engineering and finance. The Board also toured
the research & development facility in Bath,
meeting with the engineering function. This
year, in addition to the Board’s regular visits to
our Bath site, our non-executive directors visited
other Rotork sites. Individually, six site visits were
undertaken by our non-executive directors. Tim
Cobbold, Janice Stipp, Andrew Heath and Karin
Meurk-Harvey visited Chennai (India), Winston-
Salem (USA), Shanghai (China), and Manchester
(UK), respectively. During these visits, the
directors toured the facilities with regional and
local leaders and interacted with a broader
group of employees through town halls and
round tables. The Board found these site visits
very valuable and the Board thanks all the
colleagues we met for their warm welcome.
Activities of Rotork’s designated
Non-executive Director for
WorkforceEngagement
Vanessa Simms was appointed as Rotork’s
designated Non-executive Director for
Workforce Engagement on 1 January 2025.
Priorto being appointed to the role,
Vanessa was already involved in workforce
engagement activities during 2024 and
details about this are set out below.
Workforce engagement in action
During 2024, Tim Cobbold held the position
of designated Non-executive Director for
Workforce Engagement, having held the role
since its inception in 2019. This role helps to
ensure an effective engagement mechanism
between the Board and employees so that the
voice and views of our employees continue to
be represented within the boardroom and their
interests are more fully considered at all levels
ofthe Board’s decision making.
The Board as a whole recognises that the success
of Rotork relies on our positive culture, values
and people. The Board knows that long-term
performance is built by our teams worldwide
and how our employees work together to deliver
value for all the Company’s stakeholders.
Vanessa Simms
Non-executive Director
for Workforce Engagement
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Corporate governance report continued Strategic report Corporate governance Financial statements
Face-to-face employee engagement
withour Board continued
During these sessions, we committed to
maintaining complete confidentiality and
non-attributable feedback from employees,
ensuring that all comments were only shared
with management (when necessary) and
discussed during Board meetings. Due to the
nature of their work and roles, special attention
was given to engaging with employees who may
not be easily reached through other channels, such
as email. After each meeting, Board members
summarised the key themes in a report and provided
debriefs to local or senior management to
consider the insights and any resulting actions.
Overall, Board members praised the quality and
dedication of our employees and noted the
visible improvements across the Company. These
engagements have reinforced our commitment
to a transparent and inclusive culture, ensuring
that all voices are heard and valued (including
within the boardroom) as we continue to grow
and evolve.
Data including employee surveys
andwhistleblowing
Employee engagement is a crucial measure for
the success of our organisation; receiving direct
feedback from employees is essential to
understand what is working well and where we
should focus on improving. Every year, we ask all
employees to anonymously provide their views
and measure engagement scores and feedback
across key areas.
In 2024, we moved from our previously used
internal pulse survey to an externally managed
engagement survey. This has enabled us to
establish the benchmark of our engagement
levels with other companies. We were pleased
tosee that the participation rate for the survey
in 2024 was 80%, an increase versus the prior
year. Our rating of Rotork as a ‘place to work’
remains largely consistent.
Whilst there is strong positivity about the future
direction of the business, some helpful feedback
themes emerged. Employees have expressed
that Rotork will benefit from the increased clarity
around processes and robust systems that we
are implementing to support our customers
effectively. This builds on our global ERP
deployment programme, which reviews our
global processes to support the implementation
of the new systems. We are aware of the need
to continue focusing on customer responsiveness,
which has been a key initiative for us during 2024.
Our employees also wanted further investment
in the development of our people managers and
leaders and their own career development and
growth. In 2024, we ran the Business Manager
Programme to support leaders across the world.
As we move into 2025, our people strategy will
focus further on developing our people managers,
early years careers and ensuring a strong focus
on individual performance management,
development and career planning.
The Board will continue to review employee-related
data, including whistleblowing, through our
confidential SpeakUp line.
Workforce engagement in action continued
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Annual Board evaluation
In accordance with the 2018 Code, the Board
undertakes a formal and rigorous annual
evaluation of its own performance and that of
its Committees and directors. The purpose of
the evaluation is to ensure key areas such as
theBoard’s composition, expertise, interaction,
management, key decision-making processes
and meeting focus and prioritisation continue
tobe assessed and developed.
2023 external Board evaluation
The areas identified for development during the
previous year’s external evaluation process and
the actions that we have taken during 2024
toaddress them are set out below.
2024 internal Board evaluation
During 2024, Dorothy Thompson, as Board
Chair, with the guidance and support provided
by the Group General Counsel & Company
Secretary undertook an internal evaluation of the
performance and effectiveness of the Board and
its Committees. The process was commenced in
October, pursuant to which the Chair and Group
General Counsel & Company Secretary agreed
on the appropriate key themes and topics and
curated the tailored online and anonymous
questionnaires for the Board as a whole and
each Board Committee. The questionnaires also
sought feedback on the focus areas that were
agreed upon by the Board for implementation
during 2024 following the external Board
evaluation undertaken during 2023. The Group
General Counsel & Company Secretary collated
and analysed the results and discussed them
with the Chair. The Chair also sought informal
feedback from each of the directors. Feedback
and recommended focus areas for 2025 were
presented to the December 2024 Board meeting
for consideration. Subsequently, the Board
agreed an action plan for implementation
intheyear ahead, as summarised below.
Outcome and actions for 2025
The 2024 Board evaluation demonstrates that
the Board and its Committees were operating
effectively and were focused on the appropriate
matters. The key areas identified by the internal
evaluation for increased focus and development
during the forthcoming year are set out below.
Progress against these areas will be reviewed as
part of the 2025 Board performance review
andreported on in next year’s Annual Report:
• Investigate options for relevant training for
the Board and its Committees on regulatory
developments, legislative changes and
reporting requirements (including assurance
of sustainability-related data).
• Building upon the positive feedback from
theJune 2024 strategy session, ensuring
asimilarly effective and useful session is
undertakenin 2025.
• A continued focus on the Board’s oversight of
Rotork’s culture, and how the evolving culture
is being embedded within the organisation.
• Continue to incorporate insights on customers
and competitors in relevant Board papers.
Chair’s performance evaluation
Led by Tim Cobbold, as the Senior Independent
Non-executive Director at the time, an internally
facilitated review of the Chair’s performance was
completed. Tim Cobbold and the Group General
Counsel & Company Secretary worked together
to agree the areas on which to focus and
produced an online and anonymous
questionnaire. The questionnaire was further
supported by a private meeting held between
Tim and the non-executive and executive
directors. It was concluded that Dorothy
Thompson’s performance and contribution
remained strong during her second year as
Board Chair. It was agreed that Dorothy
continued to demonstrate overall effective
leadership of the Board and continued to
promote and facilitate constructive debate
within the boardroom. Feedback from the
evaluation was shared with Dorothy. The
2025Chair’s performance review will be
conductedinternally.
Board evaluation
Focus areas identified Actions taken in 2024
Quality and value of the
induction programme and
integration process for new
Board members
A comprehensive and tailored induction programme was provided
during 2024 (and early 2025) to fully familiarise Ben Peacock,
Andrew Heath, Vanessa Simms and Svein Richard Brandtzæg with
Rotork’s business operations, sites, products, people and risk and
governance arrangements, supplemented by regular formal and
informal meetings with fellow Board members and members of
the Rotork Management Board. The feedback provided as part
ofthe 2024 internal Board evaluation was that the induction
programmes were valuable and that the Board as a whole was
cohesive and operating effectively.
Focus on continued
implementation of Growth+
The Board prioritised time during the year in overseeing and
monitoring the execution of the Growth+ strategy through review
and discussion of the issues reported in the regular updates at its
meetings and through deep dives on key strategic initiatives.
Supporting the executive
directors on the people
andculture initiatives
The Board actively reviewed and supported the people and culture
initiatives during the year. At the Board strategy session in June,
adeep dive was undertaken on progress. The Chair and various
non-executive directors became personally involved in various
initiatives, both supporting the executive directors and in
recognition that a strong and cohesive culture is a critical enabler
for sustainable growth.
Rotork Annual Report 2024 rotork.com114
Corporate governance report continued Strategic report Corporate governance Financial statements
Audit, risk and internal control
Whilst maintaining overall responsibility, the
Board delegates the establishment of formal and
transparent policies and procedures relating to
independence and effectiveness of internal and
external audit functions to the Audit Committee.
The Audit Committee scrutinises the integrity of
financial and narrative statements and considers
whether the assessment of Rotork’s position and
prospects is fair, balanced and understandable
and then recommends these statements to the
Board for approval.
A risk dashboard is presented to the Board on
abiannual basis. This includes a set of key risk
indicators which provide a means of monitoring
the Group’s risk exposures, and highlights areas
where the Group exceeds, or may potentially
exceed, risk appetite. Biannual reporting is
supplemented, as necessary, by more detailed
reporting to the Board by the executive management
team on new or evolving risks, the effectiveness
of existing mitigations and plans to further
strengthen mitigations.
The Risk and Compliance team, led by the
Headof Risk and Compliance, monitors the
effectiveness of risk management across the
Group. During the year, in order to ensure
appropriate monitoring of the implementation
of controls within the ERP change programme,
an experienced member of the Risk and
Compliance team joined the programme.
TheRisk and Compliance team is responsible
forsupporting the Group to identify risks and
put in place appropriate mitigations, promoting
a risk-aware culture, adherence to risk appetite
and reporting on the status of principal and
emerging risks periodically. The Risk and
Compliance team also operates a practice of
peer internal financial control reviews whereby
experienced professionals from across the
business, who have received specialist training
from the Risk and Compliance team, perform
financial control reviews at different entities
within the Group, the results of which are
thenreported to the Audit Committee.
PricewaterhouseCoopers LLP (PwC) leads
theGroup’s third line of defence through
theprovision of an independent internal
auditfunction.
The Board is satisfied that the main roles and
responsibilities of the Audit Committee, as set
out in Provisions 25 and 26 of the 2018 Code,
are captured within the Committee’s terms of
reference. Further details of how the roles and
responsibilities of the Audit Committee have
been discharged during 2024 are set out on
pages 121 to 125.
The Board is required to carry out a robust
assessment of the Company’s emerging and
principal risks. A summary of the assessment
undertaken by the Board and a description of
the principal risks and procedures in place to
identify and manage the emerging risks can
befound on pages 70 to 77.
The Board notes that the UK Corporate
Governance Code 2024 (the 2024 Code) applies
to the Company from 1 January 2025, with
Provision 29 of the 2024 Code applying to the
Company from 1 January 2026. Preparation in
order to comply with Provision 29 of the 2024
Code commenced during 2024, a process led by
the Audit Committee (reporting into the Board).
Risk management and internal controls
The Board is responsible for Rotork’s system
ofrisk management and internal controls.
TheBoard’s annual review of the system’s
effectiveness is completed with the assistance
ofthe Audit Committee.
How the Board operates effectively
During 2024, the Board and Audit Committee
regularly considered matters relating to the
Group’s risk management and internal control
systems. This year, areas which received
particular focus were:
• The effectiveness of internal controls.
• The continued development of the Business
Controls Framework and its integration
withthe ongoing deployment of the new
ERPsystem.
• The finance transformation programme,
including resourcing levels across the
Financefunction.
• Oversight of preparation for the 2024 Code
becoming effective.
Following the publication of the 2024 Code in
January 2024, the Audit Committee reviewed
updates from management on the Group’s
preparedness for the 2024 Code, most notably
Provision 29. Throughout the year the Audit
Committee also received updates from the
external and internal auditors and the Group
General Counsel & Company Secretary in
relation to thechanges included within the
2024Code.
During 2024, the Audit Committee maintained
oversight of management’s implementation of
enhanced controls in relation to the new ERP
system as they were incorporated into the
blueprint for future deployments.
More broadly, the effectiveness of the risk
management and internal control systems
continues to be directed, monitored and
reviewed by the Audit Committee. The Audit
Committee has reviewed the effectiveness
ofthekey elements of the Group’s systems
ofrisk management and internal controls,
whichwere in place for the year under review.
Main features of the Group’s risk
management process
The Board is responsible for determining the
nature and extent of the risks the Company
iswilling to take to achieve the Group’s
strategicobjectives.
Rotork’s Risk Management Policy documents
theGroup’s risk management processes and
theconnections between such processes
andthe day-to-day operations of the Group.
Each member of the executive team who is
adesignated risk owner has responsibility for
producing and updating detailed mitigation
plans to respond to the risks in accordance
withrisk appetite. Progress on response plans
isreported to the Board, as part of the Board’s
risk review and oversight process.
Risk appetite is expressed through a number
ofrisk dimensions and risks are monitored and
reported. A risk dashboard is presented to the
Board twice a year. It constitutes a set of key risk
indicators, which provide a means of monitoring
the Group’s risk exposures and allows the Board
to focus in more detail on risks where the Group
exceeds, or may potentially exceed, risk appetite.
An established divisional and functional risk
review process results in a bottom-up
assessment of enterprise-wide risks. These risks
are consolidated before a top-down evaluation
isperformed by management, which is then
presented to and reviewed by the Board. The
bottom-up assessment process includes a review
with all central functions and commercial and
operations teams, a focus on risk mitigation
reporting, and development of plans to respond
to risks in accordance with the Board’s risk
appetite. This process is formally completed
twice a year. Further details of the Group’s
internal control and risk management systems,
the process for identifying, evaluating and
managing the principal risks faced by the Group
during 2024, emerging risks, and the Board’s
riskappetite are set out on pages 70 to 77.
115rotork.com
Corporate governance report continued Strategic report Corporate governance Financial statements
How the Board operates effectively continued
Main features of the Group’s internal
controlsystems
Audit Committee papers and meeting minutes
aremade available to Board members who are
notmembers of the Audit Committee, unless in
the opinion of the Committee Chair it would be
inappropriate to do so. The meeting papers detail
the Audit Committee’s annual review of the
assessment of the effectiveness of the Group’s
riskmanagement and internal control systems. The
Chair and executive directors are invited to attend
Audit Committee meetings with other members of
the senior leadership team presenting or attending
as necessary. In addition, a dedicated Board Risk
Review session is held each year.
Key elements of the control environment, which
form part of the review of the effectiveness of
risk management and internal control, and
which enable Rotork to respond appropriately
toall types of business risks, include:
• The Rotork values and behaviours.
• The Code of Conduct (and training on the
Code) supported by Group-wide policies and
procedures, including authority levels and
division of responsibilities.
• Mandatory training provided to employees
throughout the year on policies and
procedures relevant to their roles.
• Ongoing monitoring of business
performance, including key risk indicators.
• Annual Confirmation Statement confirming
employees’ compliance with policies.
• Ongoing monitoring of internal audit and
business control reviews.
• A formal schedule of reserved matters for the
Board, including responsibility for reviewing
Group strategy.
• A formal Whistleblowing Policy, with an
external whistleblowing hotline, with key
matters reported to the Board.
• Defined controls and assurance processes
over, for example, financial reporting and
health and safety procedures.
During the year, work on the finance
transformation programme continued with
goodprogress on the key areas being prioritised
as follows:
• Deployment of the new ERP system
continued with enhancements made as
required and the implementation process
commencing at several other sites.
• Updates to the Business Control Framework.
As part of embedding the updated Business
Control Framework within the Group, senior
members of the Group Finance team visited
key sites around the Group in order to provide
in-person training to local management.
• Update and relaunch of the ‘Rotork Group
Accounting Policies and Procedures’, providing
further consistency and clarity, and alignment
with the updated Business Control Framework.
• Work on other aspects of the Finance
function’s target operating model will
continue during 2025.
Remuneration
The responsibility for determining remuneration
arrangements for the Chair, executive directors
and senior management, as well as oversight over
workforce remuneration, has been delegated to
the Remuneration Committee, which was chaired
by Tim Cobbold during 2024. Four meetings of
the Remuneration Committee took place in 2024.
Svein Richard Brandtzæg was appointed as Chair
of the Remuneration Committee with effect from
1 January 2025, following Tim’s retirement from
the Board on 31 December 2024.
Rotork’s remuneration policies and practices are
designed to support its strategy and promote
the long-term sustainable success of the Company.
A description of the work undertaken by the
Remuneration Committee in 2024 can be found
on pages 131 to 158.
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Safety and Sustainability Committee report
Andrew Heath
Chair of the Safety and Sustainability Committee
“ I am pleasedto present the annual report of the Committee for 2024
following its inaugural year under its reconstituted responsibilities. Safety
andsustainability remain major focus areas for Rotork. During the year, the
Committee (on behalf of the Board) oversaw the implementation of Rotork’s
safety and sustainability frameworks, which serve to promote the Company’s
long-term sustainable success and vision of keeping the world flowing for
future generations.”
Andrew Heath
Chair of the Safety and Sustainability Committee
The current members of the Safety and Sustainability Committee are:
• Andrew Heath (Committee Chair) (member and Committee Chair since May 2024)
• Karin Meurk-Harvey (member since September 2021)
• Vanessa Simms (member since June 2024)
• Janice Stipp (member since January 2025)
Safety & Sustainability (S&S) Committee role and responsibilities
The main role of the Committee is to oversee
the safety and sustainability strategy of the
Company in order to promote its long-term
sustainable success. On behalf of the Board, the
Committee oversees the work being done within
Rotork as we work towards our sustainability
vision of keeping the world flowing for future
generations and our health and safety vision of
zero harm.
At the beginning of 2024 the S&S Committee
was reconstituted under its refreshed remit and
the Committee meetings were structured to
allow the Committee to undertake a deep dive
into an important safety or sustainability focus
area, at each of its meetings. The focus areas
included: oversight of the Company’s health and
safety strategy; progress being made against our
Science Based Targets initiative (SBTi) validated
greenhouse gas (GHG) emissions reduction
targets; a detailed strategic review of the
Company’s approach to product sustainability;
and considerations related to management of
sustainability within the Company’s supply chain.
The Committee’s responsibilities include:
• Oversight of the Company’s strategic safety
and sustainability plans to ensure that
progress continues to be made by the
Company in working towards the UN
Sustainable Development Goals (SDGs) it
seeks to align with.
• Overseeing the Company’s net-zero
strategy. This includes oversight of
workstreams to achieve the Company’s
commitments, which are to target:
reducing scope 1 and 2 emissions by 42%
and scope 3 emissions by 25% by 2030,
net-zero by 2035 for scope 1 and 2 and
net-zero by 2045 for scope 3.
• Providing guidance in the Company’s
sustainability communication approach.
Including reviewing the content of its
sustainability-related disclosures, to ensure
compliance with existing, and forthcoming,
laws and regulations, and alignment with
the Company’s strategic priorities.
• Liaising closely with the Remuneration
Committee to identify safety and
sustainability targets that are aligned with
strategy and that have the potential to be
included within incentive schemes. Thereby
allowing the Remuneration Committee
todischarge its responsibility in determining
the performance targets,measures and
metrics, and their related terms.
• Oversight of the Company’s approach to
safety across its operations.
• Reviewing and recommending Company
policies relevant to its scope to the Board
for approval.
• Oversight of the Company’s social impact,
including charitable activities.
Further reading:
Sustainability Review: page 34
Sustainability Reports and policies: www.rotork.com/en/sustainability/esg-reports-and-policies
Sustainability case studies: pages 52 to 56
The terms of reference for the Safety and Sustainability Committee were last reviewed in October 2024. A copy
of the current terms of reference is published on Rotork’s website at: www.rotork.com/en/investors/committees
rotork.com Rotork Annual Report 2024117
Safety and Sustainability Committee report Strategic report Corporate governance Financial statements
Our sustainability framework
Rotork’s sustainability framework remains divided into three pillars, and each pillar is aligned with specific UN Sustainable Development Goals (SDGs)
and targets relevant to Rotork’s business. The three pillars are summarised below and set out in more detail on pages 34 to 63.
Operating
responsibly
Our mission: to run safe, efficient
and sustainable operations.
Read more on page 38
Our commitments
SDG targets:
12.2, 12.5,
12.6
We will maintain strong safety
performance, measured through
our total recordable incident rate
(TRIR) as we strive for a zero
harm workplace.
We will embed social,
ethicaland environmental
considerations into our Global
Supplier Excellence programme.
SDG targets:
13.1, 13.3
We will reduce our
carbonemissions.
• Reduce emissions per £1m
revenue year-on-year.
• To reduce scope 1 and 2
emissions by 42% by 2030.
• To reduce scope 3 (use of
sold products) emissions by
25% by 2030.
• Net-zero for scope 1 and 2by
2035 and for scope 3
by2045.
Enabling a
sustainablefuture
Our mission: to help drive the
transition to a cleaner future,
whereenvironmental resources
areused responsibly.
Read more on page 52
Our commitments
SDG target:
6.4
We will enable sustainable
management of water resources
and greater water efficiency for
our customers.
SDG target:
7.3
We will support customers’
energy and emissions reduction
and enable them to incorporate
renewable energy into
theiroperations.
SDG targets:
9.1, 9.4
We will play our part to enable
the global energy transition
andsupport a cleaner, more
sustainable future.
Making a positive
socialimpact
Our mission: to support thriving,
fair and resilient communities.
Read more on page 57
Our commitments
SDG
target:
5.5
We will develop and
delivergreater gender
andethnic diversity.
SDG
targets:
8.5, 8.7
We will contribute to a fairer
society more broadly, including
ensuring that 100% of our
employees are covered by the
fair pay framework.
How the Committee operates
The Committee is currently comprised of four
independent non-executive directors, as set
outon the previous page. The Committee was
reconstituted during the course of the year.
Firstly on 1 January 2024, when it was renamed
the Safety and Sustainability Committee thereby
embracing a refreshed remit from the Board.
Secondly, to reflect the departure of Tim Cobbold
and the appointment of new non-executive
directors tothe Company during the course
of2024. I was appointed as Committee Chair on
1 May 2024, following AnnChristin Andersen’s
retirement from the Board on 30April 2024;
andVanessa Simms joined the Committee
on21June 2024, the date on which she
wasappointed to the Board. Most recently,
Janice Stipp, Chair of the Audit Committee, was
appointed as amember of the Committee with
effect from 1January 2025, therein providing
additional continuity between the Safety
andSustainability Committee’s reporting
responsibilities and the Audit Committee’s
responsibilities, for the assurance of sustainability
reporting and disclosures.
The Committee met formally three times in
2024. Details of each member’s attendance
atthe meetings is provided on page 102.
Members of the Committee also hold
discussions (as required) outside of the formal
meetings. The Board Chair, the Chief Executive
Officer, the Operations Excellence Director, the
Chief Human Resources Officer, the Investor
Relations Director, the Head of ESG &
Sustainability, and the Global Head of HSE
attended Committee meetings by invitation.
TheGroup General Counsel & Company
Secretaryacted as secretary to the Committee.
The Committee Chair reports to the Board on
the key issues covered at each meeting.
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Activities of the Committee during
theyear
On behalf of the Board, the Committee oversaw
the Company’s safety and sustainability plans,
targets and related initiatives. The Committee
received updates from the executive team on
progress towards the aims of each of Rotork’s
three sustainability pillars that sit within its
sustainability framework. These meetings
captured reviews of ongoing safety initiatives,
emissions reduction plans, and community
engagement and charitable initiatives across
theGroup. During 2024, the Committee also
maintained oversight of preparatory workstreams
to maintain compliance with evolving sustainability
reporting regulations, such as the EU Corporate
Sustainability Reporting Directive (CSRD). The
Committee members were kept updated on
Rotork’s first double materiality exercise and plans
for the requisite third-party assurance of the
Group’s disclosures. The key areas of focus for the
Committee during the year are described below.
Review of HSE strategy
The safety of our people, partners and visitors
remains a key priority for the Board, as is our
vision for health and safety is zero harm.
At its February meeting, the Committee
reviewed the health and safety strategy and
itsalignment to the overall Growth+ business
strategy. The Committee was pleased to see the
actions and projects undertaken in relation to
health and safety across the regions (within
which Rotork has an operational presence).
Alsothe move towards the next phase of the
programme, focusing on further enhancing
andembedding abehavioural safety culture.
Inherent within our health and safety vision for
zero harm is ensuring the health and safety of
our employees and visitors. In support of this,
we are continually enhancing our ‘safety first’
culture, supported by training for all employees.
At each meeting held during the year, the
Committee received updates on the Group’s
performance against the key safety metrics, that
have been established for the Group within the
safety strategy. This included a review of the
Group’s TRIR for 2024, which was 0.22 (2023:
0.26) and the lost time injury rate (LTIR) for 2024
which was 0.08 (2023: 0.08).
Net-zero commitments
In 2021 we committed to target becoming
net-zero for our scope 1 and 2 emissions by
2035 and for our scope 3 emissions by 2045.
Work towards achieving these targets continued
during 2024.
At each meeting held during the year, the
Committee reviewed progress on Rotork’s scope
1 and 2 targets and the operational workstreams
being undertaken across the Group. The Committee
reviewed the implementation of energy efficiency
projects and investment in on-site renewable
generation. The review included how we have
taken the opportunity to enhance sustainability
as part of the new manufacturing facility in
China (which achieved LEED Gold certification)
and work towards decarbonising heating at our
Manchester (UK) facility. The Committee was
pleased to note that, overall, excellent progress
continues to be made, via the various pathways,
to achieve the goal set out in the sustainability
framework of achieving a 42% reduction in
scope 1 and 2 emissions by 2030.
In terms of scope 3 emissions, and specifically
addressing the purchased goods and services
category, the Committee reviewed and supported
the steps, being taken by management, to engage
with suppliers onemissions measurement. A
granular engagement process, which originally
commenced in 2023, continued during the year.
As part of this process, Rotork has been engaging
with its supply chain on emissions measurement
and target setting, in support of Rotork’s
net-zero commitment. More details about the
nature ofthis engagement are set out on pages
47 to48.
The Committee endorsed the steps being taken
on product development to deliver efficiency
and reduce emissions, whilst recognising that
our path to net-zero is a long-term commitment.
Further details of progress achieved during the
year towards our SBTi validated targets can be
found within the Strategic Report on pages 35
to51.
Oversight of sustainability over the lifecycle
ofour products
The Committee understands that initiatives
toimprove environmental performance must
occur both upstream and downstream, through
supporting and enabling both our customers
and our supply chain to improve their own
environmental performance. During the
Committee’s three meetings in 2024, the
Committee reviewed the supply chain compliance
programme, current Supplier Code of Conduct
commitments and also discussed further planned
enhancements. Adeep dive on this topic was
undertaken by theCommittee at its meeting
inthe autumn.
The Committee noted the progress made to
embed sustainability product requirements
intonew product development, which include
requirements that will aim to reduce the
carbonfootprint associated with our products.
Annual bonus and long-term incentive
schemes - safety and environmental
performance measures
Reflecting the importance that we attach to
achieving our safety vision of zero harm and to
achieving our net-zero targets, safety measures
are captured within the annual bonus opportunity.
Likewise scope 1 and 2 GHG emissions reduction
targets are included within our senior team’s
long-term remuneration arrangements.
At the start of 2024, as part of the initiatives
toachieve the safety vision of zero harm, the
Committee approved, and made a recommendation
to the Remuneration Committee, that the
existing LTIR bonus metric (and non-financial
health and safety KPI) should be replaced by
thetotal recordable incident rate (TRIR). The
Committee recommended this change because
TRIR represents a tougher measure of health and
safety performance, given that it measures
incidents, whether or not they result in working
time lost. The use of TRIR as a metric further
aligns to industry best practice and supports the
continuing drive to improve health and safety
performance. Additionally, the Committee
recommended that the environmental
innovation measure, to support our ‘Enabling
aSustainable Future’ pillar, should be retained.
The Committee also reviewed the environmental
performance measure for the 2024 long-term
incentive award, which aligns with Rotork’s
science-based scope 1 and 2 reduction targets.
Satisfied that the proposed measure was in
alignment with Rotork’s sustainability strategy,
the Committee endorsed the Remuneration
Committee’s determination of the environmental
performance condition attached to the 2024
long-term incentive awards. For further details,
see page 150.
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Activities of the Committee during
theyear continued
Sustainability reporting and
regulatorycompliance
As a Committee, we remain conscious of the
fast-moving developments, and compliance
requirements, within sustainability and climate-
related reporting. From the 2025 financial year
onwards, Rotork is expecting to be required to
align with the requirements of the EU Corporate
Sustainability Reporting Directive (CSRD) and
European Sustainability Reporting Standards
(ESRS) and receive third-party assurance over
material issues. However, the Committee notes
the European Commission’s recent publication
ofits “omnibus package” and is currently
reviewing the potential impact for Rotork.
The Committee supported the commencement
of a double materiality assessment, with a view
to determining Rotork’s material sustainability-
related impacts, risks and opportunities (IROs).
Rotork had already undertaken materiality
assessments in prior years, so had built a solid
foundation from which to progress towards
double materiality. Following a competitive
tender, an external firm was engaged to assist us
in carrying out the double materiality assessment.
The Committee looks forward to reviewing and
discussing the findings with management during
the coming year.
Rotork also undertook an assurance readiness
review of its greenhouse gas emissions data and
procedures. An external assurance firm reviewed
Rotork’s current procedures, and controls,
against the requirements of the International
Standard on Assurance Engagements (ISAE)
3000 standard. In 2024 reporting, scope 1 and 2
emissions have been assured against the ISAE
3000 standard.
In 2024, Rotork also refreshed its Task Force on
Climate-related Financial Disclosures (TCFD)
climate scenario analyses for physical and
transition risks, which are detailed on pages 79
to 85. The Committee reviews the disclosures
prior to them being recommended to the Board.
Social
During the year, the Committee received
updates on the various social initiatives and
workstreams across the Group. These covered
areas such as employee well-being and mental
health, charity support, and community
engagement. The Committee was pleased to
note management’s work with its global charity
partnerships, including Pump Aid, which is
further explained on page 62. The Committee
also reviewed the 2024 activities of the Rotork
Benevolent Support Fund, an independent charity
which provides support to employees, and former
employees, of Rotork and their families, who are
facing financial hardship.
Safety and Sustainability
Committeeevaluation
The Committee carried out an internally facilitated
review of its performance, as part of the overall
internal Board and Committee evaluation in 2024,
and its findings were discussed by the Committee
and the Board. It was concluded that the
Committee continued to fulfil its duties effectively.
The area identified for further emphasis, and
development, by the Committee was the need
for continual training with regard to the evolving
regulatory and reporting requirements.
Looking ahead
Oversight of the three sustainability pillars of
Rotork’s sustainability framework remains the
key strategic focus area for the Committee
during 2025. The Committee will continue
tohelp drive progress in our broader safety
andsustainability agenda. As part of the
Committee’s oversight of management’s
preparation for the upcoming regulatory
changes (including CSRD), the Committee
willreview the European Commission’s
“omnibus package” and its application to
Rotorktogether with the outcomes of the
double materiality assessment. The Committee
will continue to liaise with the Audit Committee,
where required, in its role of overseeing the
assurance of the reporting and disclosures
ofsustainability data in compliance with
regulatoryrequirements.
I have now been Chair of the Safety and
Sustainability Committee for ten months,
takingover from Ann Christin Andersen,
whostepped down on 30 April 2024. I would
like toextend my thanks to Ann Christin for
allher efforts as Chair of the Committee and
supporting Rotork’s safety and sustainability
vision and strategy. I would also like to thank
allour colleagues, across the business, for their
support towards our safety and sustainability
vision, and my fellow Board members, for their
constructive inputs and personal commitment,
to this important agenda throughout 2024
andbeyond.
Andrew Heath
Chair of the Safety and Sustainability Committee
10 March 2025
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Audit Committee report
Janice Stipp
Chair of the Audit Committee
“ During 2024, the Audit Committee key activities included oversight of the
change in external auditor and oversight of Rotork’s financial reporting,
audit process, and the Company’s system of internal controls.”
Janice Stipp
Chair of the Audit Committee
The current members of the Audit Committee are:
• Janice Stipp (Committee Chair) (member since December 2020 and Committee Chair since
May 2021)
• Vanessa Simms (member since June 2024)
• Svein Richard Brandtzæg (member since January 2025)
Committee role and responsibilities
The principal responsibilities of the Audit
Committee are toreview and report to the
Board on the:
• Integrity of financial and
non-financialreporting.
• Application of significant accounting
policies andjudgements.
• Internal audit programme, its remit,
resourcing andeffectiveness.
• Adequacy and effectiveness of the
Group’sinternal controls and risk
management systems.
• Appointment, independence and
remuneration of the external auditor.
• Effectiveness of the external audit process.
How the Committee operates
The Committee is currently comprised of three
independent non-executive directors. Certain
independent non-executive directors either
retired from or were appointed to the Board
ofthe Company during 2024 and consequently,
theCommittee was reconstituted during the
year to reflect the changes. Janice Stipp and
Vanessa Simms hold professional accounting
qualifications and are deemed to have recent
and relevant financial experience. AllCommittee
members have experience of working in complex
global industrial product businesses, a number
of which share common end markets with
Rotork. The biographies and skillsets of each
member of the Audit Committee can be found
on pages 94 and 95.
The Committee is required to meet a minimum
of three times in a year. During 2024, four
formal meetings were held. Additional formal
meetings would be held as required. Members
of the Committee hold discussions outside
ofthe formal meetings and meet with the
external auditor and Head of Internal Audit
without management present. Details of
members’ attendance at each of the meetings
are provided onpage 102. The Chief Executive
Officer, Chief Financial Officer, Group Financial
Controller, Assistant Group Financial Controller,
Head of Internal Audit and Head of Risk and
Compliance also attend the Committee
meetings by invitation. Representatives of
theexternal auditor (including the lead audit
partner) also attend meetings by invitation.
The Group General Counsel & Company
Secretary acts as secretary to the Committee.
The Committee Chair reports to the Board
onthe key issues covered at eachmeeting.
Further reading:
Risk management and internal controls - see pages 67 to 78
Audit, risk and internal control in the Governance Report - see page 115
The terms of reference for the Audit Committee were last reviewed in October 2024. A copy of the current
terms of reference is published on Rotork’s website at: www.rotork.com/en/investors/committees
rotork.com Rotork Annual Report 2024121
Audit Committee report Strategic report Corporate governance Financial statements
Key activities of the Audit Committee
during the year
Financial reporting
• Reviewed the Annual Report and Accounts
(including whether they are fair, balanced
andunderstandable and climate-related
disclosures), the Corporate Governance
Report and results announcements.
• Challenged material judgements and
estimates, going concern assumptions and
the viability statement in the Annual Report
and Accounts.
• Reviewed the half-year accounts including
material judgements, estimates and half-year
results announcement.
• Appraised the external auditor’s report on
theyear-end accounts and proposed full-year
external audit scope, key risks, materiality and all
matters associated with the financial year end.
Internal controls and risk management
• Reviewed processes and procedures for risk
management and the effectiveness of the
internal controls framework.
• Reviewed the continued development of the
Business Control Framework and integration
of this work with the design of the new
ERPsystem.
• Reviewed the business control review plan.
• Reviewed significant internal control reports,
findings and management responses.
• Ongoing monitoring of the compliance with
Group policies.
• Reviewed and approved the Group risk
management policy.
• Received updates on key matters related
tothe Whistleblowing policy.
External audit
• The Committee reviewed a revised
confirmation of the objectivity and
independence of Deloitte LLP, the Group’s
former auditor, in relation to a prohibited
non-audit service which was provided to
three of the Group’s subsidiaries in prior
years. The Committee was satisfied with the
conclusion reached by Deloitte LLP that this
was an inadvertent minor breach of the
Ethical Standard and that the services provided,
which were minor and administrative in nature,
was such that they did not compromise its
independence to conduct the audit of the
Group in prior years.
• Supported an effective transition of the
external audit service provider from Deloitte
LLP to KPMG LLP.
• Actively monitored the external audit plan and
scope of the work and considered whether
there was any reason to provide further specific
direction to the external auditor; the Audit
Committee concluded that there was not and
accordingly approved the plan.
• Considered and reported to the Board on
theexternal auditor’s independence and
objectivity and the effectiveness of the audit
process including its approach to fraud.
• Reviewed the external auditor’s management
representation letter.
• Reviewed the external auditor’s views on the
control environment.
• Reviewed and approved non-audit services
undertaken by the external auditor and the
policy on non-audit work.
• Considered audit fees and engagement terms.
Internal audit
• Reviewed and approved the internal
auditprogramme.
• Reviewed the maturity and effectiveness
ofinternal audit, its remit and resourcing.
• Reviewed the policy on the independence
ofthe internal auditor.
• Approved the internal audit charter.
• Discussed and monitored progress on
implementing recommended actions,
including overdue actions.
• Evaluated the effectiveness of the internal
audit process.
Additional matters
• Supported the effective transition to the
newChief Financial Officer.
• Reviewed the 2024 Corporate Governance
Code and oversaw management’s
preparations related to Provision 29.
• Reviewed progress of the finance
transformation programme.
• Reviewed the Committee’s effectiveness
andterms of reference.
• Approved the Audit Committee’s schedule
ofwork for 2025.
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Audit Committee Chair’s statement
I am pleased to present the report of the Audit
Committee for the year ended 31 December 2024.
This year the key areas of focus for the Audit
Committee, in addition to its usual schedule
ofwork, have been:
• Supporting the effective transition to the
newChief Financial Officer.
• Supporting the effective transition of the
external audit service provider from Deloitte
LLP to KPMG LLP.
• Reviewing progress of the finance
transformation programme including the
implementation and rollout of the new ERP
system and the impact of the integrated
controls which enhance the control environment
and maintain consistency across the Group.
Monitored management’s full implementation
of enhancements, which were identified in
2023, to the ERP control environment and the
inclusion of these controls in the blueprint
forfuture implementations.
• Reviewing progress with the proposals for
UKcorporate reform and reviewing the 2024
Corporate Governance Code (which has
applied to the Company with effect from
1January 2025). The Audit Committee
reviewed and agreed management’s plan to
implement the announced changes relating to
UK corporate reform, most notably Provision
29 of the 2024 Code, which will become
effective for Rotork from 1 January 2026.
Throughout the year the Audit Committee
received updates from management and the
external and internal auditors on how to
ensure best preparedness for Provision 29
ofthe 2024 Code.
Governance
The Audit Committee maintains an annual
schedule of work, which is kept under review
and forms the basis of its principal meetings
throughout the year. The annual schedule is
supplemented by consideration of specific
matters as and when they arise.
The Audit Committee met four times during the
year, with attendance of members shown on
page 102. Details of those who were invited to
attend the Committee meetings are set out on
page 121.
There was a brief c. seven week period in
2024before Vanessa Simms joined the Board
on21 June 2024 during which there were two
members of the Committee, rather than the
three members formally required by Provision
24of the 2018 Code. During this brief period,
no Committee meetings were scheduled or held,
nor was any relevant business required to be
discussed by the Audit Committee. The Committee
remained quorate throughout. Had a Committee
meeting been required, one of the non-executive
directors would have been co-opted as a member.
As Chair of the Audit Committee, I hold
additional regular meetings with the Chief
Financial Officer, the external audit partner,
theHead of Internal Audit, the Head of Risk
andCompliance and other members of the
management team. These meetings provide me
with a better understanding of key issues and
identify those matters which require meaningful
discussion at Audit Committee meetings.
During the year, the Audit Committee received
reports from management, the Risk and
Compliance team, the internal audit team
andthe external auditor. Through face-to-face
discussions and detailed written reports, the
Audit Committee was able to challenge,
scrutinise and ask questions where clarification
or discussion is required. Regular meetings were
also held during 2024 with the external auditor
and the Head of Internal Audit without
management present.
Financial reporting
A key role of the Audit Committee in relation
tofinancial reporting is to review the quality and
appropriateness of the half-year and year-end
financial statements with a particular focus on:
• Accounting policies and practices.
• The clarity of disclosures and compliance with
UK adopted International Financial Reporting
Standards, UK company law and the 2018 UK
Corporate Governance Code.
• Material areas in which significant judgements
have been applied or where there has been
discussion with the external auditor.
• Upon request of the Board, advising the
Board on whether the Annual Report
andAccounts are fair, balanced and
understandable and provide the information
necessary for shareholders to assess the
Company’s performance.
• Review and challenge of the judgements
applied in the timing of revenue recognition
in line with the requirements of IFRS 15
Revenue from Contracts with Customers.
• Review of alternative performance measures
to ensure that they are not given undue
prominence and challenging the nature
andvalue of significant adjusting items.
In order to assess the financial statements, the
Audit Committee receives reports from members
of the Group Finance team who are invited to
attend meetings. Through face-to-face discussions
and detailed written reports, the Audit Committee
can understand and challenge the key judgements
and estimates and how they are being recorded
and disclosed in the financial statements.
The Audit Committee also receives reports from,
and holds meetings with, the external auditor.
Ituses these reports and meetings to help
challenge management’s judgement and
understand the quality and appropriateness
ofthe financial reporting.
The principal matters of judgement and
estimation considered by the Audit Committee
in relation to the 2024 year-end accounts and
how they were addressed were:
Retirement benefit schemes: At 31 December
2024, the Group operated two defined benefit
retirement plans, both of which are now closed
to future accrual. The valuations are prepared
byan independent qualified actuary. During the
year the UK Scheme purchased a bulk annuity
covering the UK Scheme’s deferred pensioner
liabilities. As a result, all liabilities under the
scheme are now covered by bulk annuities
andtherefore the scheme has been accounted
for asa buy-out with the movement in the
valuation being recognised in the income
statement. TheAudit Committee considered
thereport from the Group Financial Controller
and was satisfied that the assumptions used for
determining the defined benefit obligation and
the associated accounting treatment of the
buy-in were appropriate.
Alternative performance measures: The
Group uses adjusted figures as key performance
measures in addition to those reported under
adopted IFRS, as management believes these
measures provide additional useful information
to assist in the comparison of the Group’s
underlying results with prior periods and
assessment of trends in financial performance.
The Audit Committee reviewed the presentation
and definitions of the alternative performance
measures in the financial statements and were
satisfied that they were not given undue
prominence. The Audit Committee reviewed and
challenged the report from the Group Financial
Controller and was satisfied that the nature and
value of significant adjusting items was appropriate.
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External auditor
KPMG LLP was formally appointed as the
Group’s external auditor by the Company’s
shareholders at the AGM on 30 April 2024, and
the year under review marks its inaugural year.
Huw Brown has acted as KPMG LLP’s lead audit
partner for Rotork for the 2024 year-end. During
the year, Huw and other members of the KPMG
LLP Group audit team visited several key Rotork
locations. They also effectively communicated
with and supervised the broader team auditing
across the Group.
The Audit Committee assesses the effectiveness
of the external audit process, the scope of the
Group audit and the quality of the audit work
throughout the year, and the independence of
the auditor. The assessment considers:
• Any issues encountered in conducting the
prior year external audit.
• The proposed external audit plan, including
identification of risks specific to Rotork.
• External audit scope and materiality threshold.
• Matters arising during the external audit
andthe communication of these to the
AuditCommittee.
• The independence and objectivity of the
external auditor including the level of
challenge provided to management.
• The FRC audit quality review report on
selected audits undertaken by KPMG LLP.
Independence
KPMG LLP confirmed to the Audit Committee
during the year that:
• The audit engagement team, and others in
the firm as appropriate, KPMG, and where
applicable, all KPMG network firms are
independent of the Group and their
objectivity is not compromised.
• It has no relationships with Rotork plc, its
directors and senior management and its
affiliates, and no other services provided to
other known connected parties, that it considers
may reasonably be thought to bear on its
objectivity and independence, together with
the related safeguards that are in place.
The Committee ensures the policy on non-audit
services has been applied.
The Group has not employed former members
of the audit team or KPMG LLP partners during
the year.
Following each Audit Committee meeting the
Audit Committee held private sessions with the
external auditor, thereby providing the external
auditor with a private forum to raise any issues
itmay deem to be of concern. The Chair of
theAudit Committee also meets with the
external audit partner and other senior
membersof the audit team ahead of each
AuditCommittee meeting.
Effectiveness
• Reviewing the external audit plan, identified
risks and audit scope with KPMG LLP.
• Reviewing the experience and expertise
ofthe audit team.
• Reviewing written reports prepared by
KPMGLLP for the Audit Committee on key
audit findings, financial reporting topics and
the control environment.
• Reviewing the nature and quality of the
external auditor’s report.
• Obtaining feedback from executive
management and the Group Finance team
onthe quality and effectiveness of the audit,
which in turn had canvassed the opinions of
various Group entities using a questionnaire
on audit quality.
• Discussing with executive management, the
Group Finance team and KPMG LLP as to
whether the audit has been delivered in line
with the plan.
• Holding discussions throughout the year
directly with the KPMG LLP lead partner and
other senior members of the audit team to
understand the work they have performed,
their knowledge of the Group’s business and
industry, and how they have maintained
independence, demonstrated professional
scepticism and challenged management’s
assumptions. Notable examples of how the
external auditor challenged management and
demonstrated professional scepticism during
the year include the audit of adjusting items
and revenue recognition.
Having completed this review, the Audit
Committee agreed that the audit process,
independence and quality of the external
auditwere satisfactory.
External audit tender
The 2023 financial year was the tenth year-end
Deloitte LLP had been appointed as external
auditor. Therefore, in line with requirements, a
competitive external audit tender process was
undertaken during 2023. Following the competitive
tender process, KPMG LLP was selected as
external auditor for the 2024 year-end. KPMG
confirmed its independence to the Committee
from 1 July 2023 and was formally appointed as
the external audit service provider for the 2024
financial year, following shareholder approval
atthe Company’s 2024 AGM on 30 April 2024.
Under current regulations the Group is required
to retender the external audit no later than for
the 2034 financial year.
Statement of compliance
The Company confirms that it has complied with
terms of The Statutory Audit Services for Large
Companies Market Investigation (Mandatory
Useof Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014
(theOrder) throughout the year.
Non-audit services
In order to safeguard the independence and
objectivity of the external auditor, the Board has
adopted a policy on non-audit services, which
restricts the work and fees available to the
external audit firm. The Audit Committee
reviews the policy annually to ensure that it
remains appropriate. The policy reflects the
FRC’s Revised Ethical Standard 2024 on
permitted non-audit services.
The policy permits the use of the external
auditor only for services identified on the list
contained in the Revised Ethical Standard. Prior
to commencing any activity the external auditor
must assess whether it meets the requirements
of their independence checks. If those checks
are satisfied and the fee is £20,000 or less,
authority is delegated to the Chief Financial
Officer to approve this proposed non-audit work
independently. However, should the fee be
above £20,000 or the total non-audit services
approved by the Chief Financial Officer exceed
£80,000 during any financial year, approval must
be approved by the Chair of the Audit
Committee. Any work that is approved is
reported to the Audit Committee.
An analysis of fees paid to KPMG LLP, including
the split between audit and non-audit, is
included in note 9 of the financial statements.
The non-audit services provided relates to the
interim review performed on the half-year results
under ISRE 2410 and other services across
subsidiaries where local law requires the
statutory auditor to provide it.
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Audit Committee report continued Strategic report Corporate governance Financial statements
Internal controls, internal audit and
riskmanagement
The Audit Committee has responsibility for
reviewing and monitoring the effectiveness
ofthe Group’s control environment, risk
management and internal audit process.
As set out in the Strategic Report, the
continuous improvement and execution of
acomprehensive and robust system of risk
management remains a key priority for Rotork.
The Audit Committee received reports at each
meeting on progress with the work. Plans for
2025 were reviewed by the Audit Committee in
December 2024 and progress will be monitored
in the coming year.
The Head of Risk and Compliance leads a team
that is responsible for risk management and
financial compliance reviews across the Group.
The core team is supplemented by Rotork’s
Finance function from other parts of the Group
who have been trained in the compliance review
process. This combined team delivered financial
and business control compliance reports for
12of our global locations during the year.
Business control reviews were paused during the
first halfof the year whilst the Business Control
Framework was reviewed and refreshed. Guidance
is provided by the Audit Committee to the Risk
and Compliance team on the nature and extent
of testing to be undertaken.
In the first half of the year Rotork’s Business
Control Framework was updated by management
and relaunched across the Group. Senior members
of the Group Finance team visited key Rotork
entities to provide in-person training on the
Business Control Framework to local
management. The Chief Financial Officer also
presented on the importance of controls at
Rotork to the senior leadership team at its
annual conference held in early 2024. This
formed part of workstreams to ensure that
Rotork is continually improving risk management
and internal controls.
The Audit Committee receives reports on
financial compliance review activity, any
significant matters arising and the management
responses. During the year, recommendations
were made for improvement to controls, which
management was charged with implementing,
none of which related to significant failings or
weaknesses. The status and effectiveness of
actions are monitored by the Head of Risk
andCompliance and regularly reported to the
Audit Committee. As a result of such activities,
increased accountability in respect of improvement
actions arising from business control reviews
isvisible.
The Risk and Compliance team continues to
manage the process for sites to confirm the
operation of key financial controls. In the fourth
quarter a confirmation process was deployed to
confirm operation of key controls in advance of
the year-end and to provide an update on the
earlier Business Control Framework activity.
Theresults of the assessment were shared
withmanagement and the Audit Committee.
Other means of assessing the internal control
systems include the risk assessment process,
theAudit Committee’s assessment of the
effectiveness of risk management and annual
letters of assurance from the divisional leadership
team. These controls sit alongside our system
ofgovernance, including key Committees that
monitor our processes and controls, such as
theAudit Committee and Safety and
Sustainability Committee.
Rotork’s Risk Management Policy documents
theGroup’s risk management processes and the
connections between those various processes
and the day-to-day operations of the Group.
Each member of the executive team who is a
designated risk owner has responsibility for
producing and updating detailed plans to
respond to risks in accordance with risk appetite.
Progress on response plans is reported to the
Board, as part of the Board’s risk review and
oversight process.
PricewaterhouseCoopers LLP (PwC LLP)
continued to provide internal audit services
throughout 2024. The function is led byan
experienced Head of Internal Audit from
PwCLLP. Risk-based internal audit reviews
havebeen completed during 2024 covering
thefollowing areas:
• Fourth-party logistics contract review.
• Governance of the business transformation
programme which includes the Group-wide
ERP implementation.
• Talent and performance management.
• Risk and compliance-led controls review.
The Audit Committee receives updates on
internal audit activity, any significant matters
arising and management responses. The status
of actions is monitored by internal audit and
regularly reported to the Audit Committee.
In selecting risk-based internal audits for the
2024 plan, the team has focused on those risks
where reliance on mitigations is most significant
whilst ensuring a broad coverage of areas over a
multi-year cycle. The Risk and Compliance team
has determined the sites to be subject to review
in 2025 based on a thorough risk assessment.
The Audit Committee reviewed the 2025
programme for risk and compliance and
internalaudit at its December meeting.
The Audit Committee confirms that it has
undertaken its annual review of the effectiveness
of the system of internal control as operated
throughout the year ended 31 December 2024.
Audit Committee evaluation
In accordance with its terms of reference, during
2024 the Audit Committee undertook an internally
facilitated review of its own performance as part
of the overall internal Board and Committee
evaluation process and its findings were discussed
by the Committee and the Board. As part of the
process, the Committee reviewed how it had
discharged its responsibilities. It was concluded
that the Committee continued to fulfil its duties
effectively and certain areas were identified for
ongoing emphasis and development by the
Committee during 2025.
Throughout the year, the Audit Committee
alsoconsidered relevant accounting and
corporate governance developments, in addition
to those in relation to risk and internal controls
discussed above.
Areas of focus for 2025
Key areas of focus for the coming year, in
addition to the usual schedule of work are:
• To review the ongoing implementation of the
ERP system and the impact of the integrated
controls to enhance the control environment
and drive consistency between locations.
• To review the implications for Rotork of
developments in the external audit process
and regulation landscape arising from wider
corporate governance reform.
• To ensure the Company’s preparedness
forProvision 29 of the 2024 Code
becomingeffective.
Janice Stipp
Chair of the Audit Committee
10 March 2025
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Nomination Committee report
Dorothy Thompson, CBE
Chair of the Nomination Committee
“ 2024 was an important year at Rotork from a Board succession
perspective, with Ben Peacock joining the Boardas Chief Financial
Officer, alongside Andrew Heath, Vanessa Simms and Svein Richard
Brandtzæg joining the Board as non-executive directors. We are
wellplaced tolook to the future, with a strong and cohesive Board
ofdirectors.”
Dorothy Thompson, CBE
Chair of the Nomination Committee
The current members of the Nomination Committee are:
• Dorothy Thompson (Committee Chair) (member since December 2022 and Committee Chair
since April 2023)
• Janice Stipp (member since December 2020)
• Andrew Heath (member since January 2025)
Further reading:
2024 internal Board evaluation process on page114
The mix of skills and experience of the current Board on page 97
Diversity and Inclusion Policy, which is published on our website: www.rotork.com/en/investors/
diversity-and-inclusion
Gender Pay Gap Report, which is published on our website: www.rotork.com/en/investors/
diversity-and-inclusion
The terms of reference for the Nomination Committee, which were last reviewed in October2024. A copy of
the current terms of reference is published on Rotork’s website at: www.rotork.com/en/investors/committees
Committee role and responsibilities
The main role of the Nomination Committee is to
lead the appointment process for the Board and
ensure that the Company maintains appropriate
succession plans for the Board and applicable
senior management to support the Company in
delivering its strategy and meeting its business
requirements. The Committee evaluates and
examines the skills and characteristics required to
ensure that the Board and senior management
have the correct balance of attributes and
knowledge to operate effectively as a whole and
to be able to deliver the long-term success of
theCompany, whilst ensuring that business is
conducted with the utmost integrity and in full
alignment with the Company’s culture, purpose
and values. Board and Committee composition
are formulated to ensure that there is an
appropriate range of diverse experience and
expertise. The Committee keeps the succession
requirements of the Company under regular
review and, as part of this responsibility, ensures
that appropriate processes are in place for
nominating, training and evaluating directors
andsenior management.
The Committee’s responsibilities include:
• Leading the process for Board appointments
and making recommendations for
appointments to theBoard.
• Ensuring that plans are in place for orderly
succession to both the Board and senior
management positions and overseeing
thedevelopment of a strong and diverse
pipeline forsuccession.
• Reviewing the structure, size and composition
and balance of the Board. This includes
anongoing review of its balance of skills,
diversity, knowledge and experience.
• Making recommendations to the Board as to
the composition of the Board’s Committees.
• Annually assessing whether non-executive
directors continue to be considered
asindependent.
• Reviewing the time commitment expected
from non-executive directors.
• Reviewing the Company’s Board Diversity
and Inclusion Policy, its objectives and
linkage to strategy, how the policy has
been implemented and progress made on
achieving the objectives set out in the policy.
• Oversight of the annual Board
evaluationprocess, including a review
ofrecommendations arising from
theevaluation.
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How the Committee operates
The Committee is currently comprised of three
independent non-executive directors and has
been comprised as such at all times throughout
2024. Certain independent non-executive
directors either retired from or were appointed
to the Board of the Company during 2024, and
consequently, the Committee was reconstituted
during the year to reflect the changes. The
Committee meets a minimum of three times in
ayear and would hold additional meetings for
any ad hoc business requirements that arise,
forexample in relation to succession planning.
Members of the Committee also hold discussions
as required outside of the formal meetings.
During 2024, the Committee met six times.
Details of members’ attendance at each of the
meetings are provided on page 102. The Chief
Executive Officer and Chief Human Resources
Officer also attend the Committee meetings
byinvitation. The Group General Counsel &
Company Secretary acts as secretary to the
Committee. The Committee Chair reports to
theBoard on the key issues covered at each
meeting. The biographies and skillsets of each
member of the Nomination Committee can be
found on pages 94 and 95.
Key activities of the Committee during
theyear
• Oversight of the onboarding of Ben Peacock
as Chief Financial Officer, following his
appointment on 11 March 2024.
• Led the orderly succession planning process
for the selection and recommended
appointment of new non-executive directors
Andrew Heath, Vanessa Simms and Svein
Richard Brandtzæg, who joined the Board
on1 April 2024, 21 June 2024 and
20November 2024 respectively.
• In parallel to the appointment of the Company’s
new non-executive directors, the Committee
reviewed, and then recommended to the
Board, the reconstitution of membership of
the Board Committees twice during the year.
The Committee was keen to ensure that the
skills and expertise of each non-executive
director were best utilised to ensure the
Committees continued to operate most
effectively and that the interaction between
each of the Committees remained effective.
• Reviewed the talent management process,
development and succession plans for
Rotork’s senior leaders.
• Reviewed and approved Rotork’s UK Gender
Pay (including ethnicity pay) Report made up
to the April 2024 snapshot date.
• Reviewed an updated Board Diversity and
Inclusion Policy and recommended the
updated Policy to the Board for approval,
andthereafter monitored performance
against targets set out within the Policy.
Succession planning
Succession planning for the Board and senior
management is continuous. During the year,
theCommittee considered the composition,
structure and size of the Board and the need
tomaintain an appropriate range of skills,
knowledge, diversity, independence and
experience to ensure that the Board and senior
management remain appropriately balanced and
complementary. The mix of skills and experience
of the current Board required to drive Rotork’s
long-term success is set out on page 97.
Additionally, the Committee reviewed the
succession plans and leadership development
programmes in place for members of the
RotorkManagement Board.
Chief Financial Officer onboarding
The process of recruitment and appointment
ofRotork’s Chief Financial Officer, Ben Peacock,
was reported fully in last year’s Nomination
Committee Report. Ben was appointed as Chief
Financial Officer on 11 March 2024, succeeding
Jonathan Davis, who was previously Group
Finance Director. Jonathan stepped down from
the Board on 30 April 2024 but remained with
the Company until 10 September 2024 to
support a smooth and successful transition.
Further details about Ben Peacock’s induction
programme are set out on page 129.
Non-executive director onboarding
The process for the recruitment and appointment
of non-executive directors Andrew Heath and
Vanessa Simms, who joined the Board on
1April2024 and 21 June 2024 respectively, was
reported in detail within last year’s Nomination
Committee Report. Upon joining the Board, both
Andrew and Vanessa received a comprehensive
and tailored induction programme, which is
more fully described on the next page.
Non-executive director appointment
In May 2024, Tim Cobbold advised that he
wouldbe stepping down from the Board on
31December 2024. Tim was Rotork’s Senior
Independent Non-executive Director, Chair of
the Remuneration Committee and the designated
Non-executive Director for Workforce Engagement.
From June onwards, the Committee determined
the criteria for the prospective new appointment,
looking at the Board’s requirements in the round,
and then oversaw the selection process of a new
non-executive director. The Committee engaged
Lygon Group to act as Rotork’s search consultants,
utilising their recent knowledge and experience
of the Rotork Board given their engagement
assearch consultants for the recruitment of
Andrew Heath and Vanessa Simms. Except
forwhere they have undertaken previous
recruitment processes (such as the recruitment
of Andrew and Vanessa), Lygon Group do not
have any other connection with the Company
orits directors. They are a signatory of the
Voluntary Code of Conduct for Executive
SearchFirms, which is a requirement of our
Board Diversity and Inclusion Policy.
The Committee considered a shortlist of
potential candidates provided by the search
consultants, taking into account the balance of
skills, diversity and experience existing on the
Board and required for the (to be) vacant roles,
together with an assessment of the time
commitment expected. Following the interview
process, the Committee recommended to the
Board the appointment of Svein Richard Brandtzæg
as a non-executive director. We werepleased
towelcome Svein Richard to our Board on
20November 2024. His expertise in leading a
global industrial group, sustainability background
and remuneration experience have maintained
the diverse mix of skills and experience on
theBoard. Svein Richard’s other public
commitments were disclosed and considered
bythe Committee prior to his appointment and
theyare disclosed on our corporate website at:
www.rotork.com/en/about-us/rotork-plc-board.
Furthermore, the Committee recommended to
the Board that Andrew Heath was best placed
tosucceed Tim Cobbold as Senior Independent
Non-executive Director from 1 January 2025.
Latterly, the Committee recommended to the
Board that Svein Richard succeed Tim as Chair
ofthe Remuneration Committee and Vanessa
Simms succeed Tim as designated Non-executive
Director for Workforce Engagement, both from
1 January 2025. Their other public commitments
were considered by the Committee prior to their
appointment to these roles. Along with Vanessa
Simms, Svein Richard will stand for election by
shareholders for the first time at the Company’s
2025 AGM.
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New non-executive director and Board roles appointment process
The Committee followed the process set out below for the recruitment of a new non-executive director and other Board roles:
Stage 1:
Building the Brief
The Committee built a specification for the new non-executive director, considering the balance
ofskills, diversity and experience of the Board and for the required role(s).
This also applied to the roles of Senior Independent Non-executive Director and designated
Non-executive Director for Workforce Engagement.
Stage 2:
Candidate Search
The Committee appointed Lygon Group as the search consultancy, from a shortlist of firms, noting
their recent knowledge of Rotork given their role as search consultants engaged during the search
for Andrew Heath and Vanessa Simms.
Stage 3:
Review, Assess
andInterview
Lygon Group provided a longlist, with the first stage interviews then conducted by the Chair.
Meetings with other Committee members were also conducted with a shortlist of candidates
toassess whether their skills and experience would be valuable to the Board as a whole.
Preferred candidates then met with other members of the Board.
Stage 4:
Committee
Recommendation to the
Board and Board Approval
The Committee discussed the feedback received and provided its proposal to the Board covering
its recommendations for anew non-executive director, Senior Independent Non-executive Director
and designated Non-executive Director for Workforce Engagement.
The Board approved the appointment of Svein Richard Brandtzæg as a non-executive director
witheffect from 20 November 2024, Andrew Heath as Senior Independent Non-executive Director
from 1 January 2025 and Vanessa Simms as designated Non-executive Director for Workforce
Engagement from 1 January 2025.
Stage 5:
Tailored Induction
Programmes
Further details on the tailored induction delivered to Andrew, Vanessa and Svein Richard are set
out in the adjacent box.
Non-executive director inductionprogrammes
Upon joining the Board, Andrew Heath, Vanessa Simms
andSvein Richard Brandtzæg all received a comprehensive
induction programme, which was designed to immerse the
director in a wide range of Rotork’s activities, including
strategy, culture, operations and governance framework.
Theprogramme included information on Rotork’s end markets
and sales channels, product training and a briefing on research
and development activities.
The induction programmes were structured so as to provide
the non-executive directors with an opportunity to establish
relationships with Rotork’s senior personnel and gain a wide
and detailed understanding of the Company.
Alongside meetings with the Chair, the Chief Executive
Officer, the Chief Financial Officer and the Group General
Counsel & Company Secretary, the non-executive directors
had detailed meetings with each of the members of the
Rotork Management Board and relevant key advisers.
The non-executive directors also undertook operational site
visits to a factory facility and training on Rotork’s products,
both of which also allowed them to meet with a range of our
employees in person. Inaddition, new directors are provided
with a range of documents and materials to supplement
theirunderstanding of the Company. Details relating to the
ongoing development and support of all directors are set out
in the Governance Report on page 101.
Rotork Annual Report 2024 rotork.com128
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Chief Financial Officer
inductionprogramme
On formally joining the Board in March 2024,
Ben Peacock commenced a robust and varied
induction process aimed at familiarising him with
the intricacies of the business. This included deep
dive briefings on the Finance, Treasury and Risk
and Internal Control functions, for which Ben
became directly responsible. From the point of
joining the Board Ben became fully immersed
inthe investor relations programme, allowing
him to meet with shareholders alongside the
wider analyst and investor community. In
addition, Ben met his fellow Board members,
received past Board papers and was briefed
onRotork’s governance framework.
Ben’s wider induction included detailed briefings
on all aspects ofRotork’s business model and
Growth+ strategy, factory tours, product training,
operational activities and locations, research and
development, end markets, key stakeholders and
sustainability activities. Alongside meeting his
fellow colleagues, Ben met with Rotork’s principal
corporate advisers, the audit partner at the
external auditor and the Head of the Internal
Audit function. Ben’s induction programme was
bolstered by Jonathan Davis remaining with
Rotork until September 2024, which enabled
athorough handover on all aspects of Ben’s
responsibilities. The Committee is pleased with
how well Ben settled in during 2024 and the
wider impact that Ben has already had.
Diversity and inclusion
The Board Diversity and Inclusion Policy
providesahigh-level summary of the Board’s
approach todiversity and inclusion in senior
management roles which is governed in greater
detail through the Group’s policies. In April, the
Committee reviewed and recommended to the
Board that the updated policy be approved. The
policy canbe found on our corporate website at
www.rotork.com/en/investors/diversity-and-inclusion
and sets out the areas of activity and
initiatives currently being undertaken and
practised by Rotork, including the diversity-
related Sustainable Development Goals,
reference to the FTSE Women Leaders Review
and the Parker Review, alongside our continued
commitment to the aims of the 30% Club. The
Committee endorsed management’s initiatives
and actions for increased focus on diversity and
inclusion undertaken throughout the business
during the year noting that, as part of our Early
careers programme, at least 51% of participants
are diverse in terms of gender and ethnicity.
TheCommittee also reviewed and approved the
publication of the Gender Pay Report figures as
at the April 2024 snapshot date, which can be
found on our website at: www.rotork.com/en/
investors/diversity-and-inclusion. Rotork also
publishes its ethnicity pay figures, which are
contained within the Gender Pay Report.
The Committee is pleased to report that
Rotorkcontinues to meet the requirements
under the FCA’s UK Listing Rules and Disclosure
Guidance and Transparency Rules (DTRs)
covering diversity and inclusion reporting for
UKlisted companies, in particular the three
specified targets: (i) at least 40% of the
company’s board of directors be women;
(ii)atleast one of the company’s senior board
positions (Chair, Chief Executive Officer, Senior
Independent Non-executive Director or Chief
Financial Officer) be held by a woman; and (iii)
atleast one member of the company’s board
befrom a minority ethnic background.
As at 10 March 2025, Dorothy Thompson held
office as Board Chair, female Board representation
was 50% and ethnic representation on the
Board was 25%. The numerical data on the
gender identity and ethnic diversity of the Board
and executive management is set out in the
tables on the next page. The data has been
collected through a voluntary survey request
mechanism, and is self-reported against the
categories set out in UK Listing Rule 6 Annex 1R.
Internal Board evaluation process
During the year an internally facilitated
evaluation of the Board, its Committees and
theChair was undertaken in line with the
Committee’s terms of reference and provisions
of the 2018 UK Corporate Governance Code.
This was facilitated by the Group General
Counsel & Company Secretary, working closely
with the Board Chair, Chairs of the Board
Committees and the Senior Independent
Non-executive Director. As part of the process,
the Committee reviewed how it had discharged
its responsibilities. An independent external
Board evaluation was undertaken in 2023, and
more details in relation to the external evaluation
can be found in the 2023 Annual Report. The
next external Board performance review is due
no later than 2026. Further details of the full
evaluation process can be found on page 114.
Nomination Committee evaluation
The Committee carried out an internally
facilitated review of its performance as part
ofthe overall internal Board and Committee
evaluation in 2024 and its findings were discussed
by the Committee and the Board. As part of the
process, the Committee reviewed how it had
discharged its responsibilities. It was concluded
that the Committee continued to fulfil its duties
effectively. The key focus area was the continued
oversight of the operational effectiveness of the
Board Committees, following their reconstitution
from January 2025.
Election and re-election of directors
Led by the Committee Chair it was concluded
that, based on an assessment of the individual
skills, relevant experience, contributions and time
commitment of the non-executive directors and
taking into account their other offices and
interests held, all those non-executive directors
standing for election or re-election in 2025
remain independent and committed to their role
and continue to be highly effective members
ofthe Board. The Board continues to be mindful
of the number of external appointments held
bydirectors. In August 2024, the Board External
Appointments Policy was reviewed. Set within
the context and expectations of the Code, it
details the Company’s approach to external
appointments for both Board and RMB
members. The emphasis is on ensuring directors
have sufficient time to meet their Rotork Board
responsibilities, including during any periods of
additional time requirements. All prospective
external appointments for non-executive or
executive directors require Board approval
following prior consultation with, and the
support of, the Chair or the Senior Independent
Non-executive Director.
The Board is recommending the election or
re-election to office of all directors at the 2025
AGM. As explained elsewhere in the Corporate
Governance Report, Vanessa Simms and Svein
Richard Brandtzæg will be standing for election
for the first time. The biographical details of the
newly appointed directors are set out in the
AGM Notice and on pages 94 and 95. Details
ofthe service agreements for the executive
directors and letters of appointment for the
non-executive directors are set out in the
Directors’ Remuneration Report on pages
142and 156.
Dorothy Thompson, CBE
Chair of the Nomination Committee
10 March 2025
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Gender identity or sex
(ii)
Gender identity or sex
Men: 55.56%
Women: 44.44%
Men: 83.33%
Women: 16.67%
Ethnic background
(iii)
Ethnic background
White British
orother White
(including
minority-White
groups):77.78%
Asian/Asian
British:22.22%
White British
orother White
(including
minority-White
groups):83.33%
Asian/Asian
British:16.67%
Rotork plc Board as at 31 December 2024
(i)
Executive management - the Rotork Management Board as at 31 December 2024
(i)
Gender identity or sex of the Board and executive management as at
31December 2024
(i)
Number of
Board members
Percentage of
the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage of
executive
management
Men 5
(ii)
55.56%
(ii)
3 10 83.33%
Women 4 44.44%
(ii)
1 2 16.67%
Not specified/
prefer notto say 0 0% 0 0 0%
Ethnic background of the Board and executive management as at
31December2024
(i)
Number of
Board members
Percentage of
the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage of
executive
management
White British or other
White (including
minority-White groups)
7
(iii)
77.78%
(iii)
3 10 83.33%
Mixed/multiple
ethnicgroups
0 0% 0 0 0%
Asian/Asian British 2 22.22%
(iii)
1 2 16.67%
Black/African/
Caribbean/Black British
0 0% 0 0 0%
Other ethnic group 0 0% 0 0 0%
Not specified/
prefer notto say
0 0% 0 0 0%
(i) Data self-reported against the categories set out in UKLR 6 Annex 1R. Rotork’s executive management is defined as the
members of the Rotork Management Board.
(ii) After Tim Cobbold had stepped down from the Board on 31 December 2024, the number of Board members identifying
asmen changed to four, meaning that from 1 January 2025 50% of the Board were represented by men and 50% by women.
(iii) After Tim Cobbold had stepped down from the Board on 31 December 2024, the number of Board members identifying
asWhite British or other White changed to six, meaning that from 1 January 2025 75% of the Board were represented
asWhite British or other White and 25% of the Board were represented as Asian/Asian British.
Rotork Annual Report 2024 rotork.com130
Nomination Committee report continued Strategic report Corporate governance Financial statements
Directors’ Remuneration report
“ I am pleased to present the 2024 Directors’ Remuneration report, which
ismy first report as Chair of the Remuneration Committee. The2024
Directors’ Remuneration report is the second falling under theCompany’s
current Remuneration Policy, which I was pleased to seereceived 98%
support from shareholders at the Company’s 2023 AGM. We continue to
operate under the framework of the approved Policy and remain confident
that it continues to align theinterests of Rotork, its shareholders and our
other stakeholders and focuses executive directors on delivery ofthe
Company’s strategicobjectives.”
Svein Richard Brandtzæg
Chair of the Remuneration Committee
The current members of the RemunerationCommittee are:
• Svein Richard Brandtzæg (Committee Chair, appointed on 1 January 2025)
• Andrew Heath (member since May 2024)
• Karin Meurk-Harvey (member since September 2021)
Committee role and responsibilities
The main role of the Committee is to establish
aremuneration policy for executive director
remuneration and determine matters relating
tothe remuneration of the Company’s
executivedirectors and the Rotork Management
Board, which are aligned with the long-term
success of the Company and its shareholders,
and enable the Company to attract, retain and
incentivise executive directors and the Rotork
Management Board.
The Committee’s responsibilities include:
• Determining individual remuneration
packages for the executive directors, the
Chair and, on the advice of the Chief
Executive Officer, the Rotork Management
Board withinthe approved Policy.
• Selecting the measures and setting the
performance criteria forthe annual bonus
and LTIP and, at the end of their performance
periods, evaluating performance against
the criteria and considering whether any
discretion should be applied when
determining the level of payment.
• Agreeing the terms and conditions to be
included in serviceagreements for executive
directors, including termination payments.
• Selecting, appointing and setting the terms
ofengagement with any remuneration
consultants who may advise the Committee.
• Monitoring the principles and structures
ofremuneration across the Group and
ensuring that there is consistency and that
there are procedures in place to monitor
fairness of application. The Committee
reviews internal relativities, pay ratios and
gender and ethnicity pay gaps, and invites
the Chief Human Resources Officer to its
meetings to provide a broader picture of
workforce remuneration.
• Taking into account guidance issued by
shareholders, their representative bodies
and proxy agencies (including the
Investment Association, Institutional
Shareholder Services and Glass Lewis).
• Taking into consideration shareholders’
interests, any views expressed by
shareholders during the year (including at
the Company’s AGM) and encouraging an
open dialogue with the Company’s largest
shareholders. Major shareholders are
consulted in advance about changes to the
Policy or any significant proposed changes
tothe way in which it is implemented.
Rotork’s key remunerationprinciples
The Remuneration Committee remains committed towards remuneration being:
• Performance driven, competitive andfair
• Motivating, affordable and proportionate
• Aligned to shareholders’ interests
• Globally relevant andtransparent
Svein Richard Brandtzæg
Chair of the Remuneration Committee
rotork.com Rotork Annual Report 2024131
Directors’ Remuneration report Strategic report Corporate governance Financial statements
Annual statement by the Chair of the Remuneration Committee
• Implementing the arrangements described
inlast year’s report in relation to Jonathan
Davis’ retirement as an executive director and
Group Finance Director from the conclusion
of the AGM on 30 April 2024. Asset out
inlast year’s report, Jonathan remained an
employee of Rotork and continued to provide
support to Ben Peacock until his retirement
date on 10 September 2024.
• A determination of the vesting levels for the
LTIPs awarded in 2021. As previously, the
Committee reaffirmed its decision that there
should be no adjustments to the LTIP targets
or in-flight LTIP awards. The Committee
determined the overall vesting level for
the2021 LTIP awards to be 13.8%, and
inthecontext of Rotork’s overall business
performance, concluded that no exercise
ofdiscretion was required in relation to
theformulaic vesting levels.
• From 2023 onwards, an environmental
measure was incorporated within the
LTIPgranted under the current approved
Remuneration Policy, which accounted for
10% of the maximum opportunity. The
measure is an absolute reduction in scope
1and 2 CO
2
emissions (2020 base year),
withtargets aligned to the accredited and
published 2030 Science Based Targets
initiative (SBTi) targets. Recognising that
(atthe point of its introduction) this was an
immature measure, the Committee monitored
the performance of in-flight awards to underpin
confidence inthe measure and the related
systems and processes for generating and
assuring performance data. In conjunction
with theSafety and Sustainability and Audit
Committees, the Committee continued to
keep the measurement, and assurance of
thetargets, under review to ensure that they
remained aligned with established protocols
and standards in this evolving area.
• During 2024, following consultation with
theSafety and Sustainability Committee, the
Committee took the decision to change the
Dear Shareholder
On behalf of the Board, I am pleased to present
the Remuneration Committee’s report for the
financial year ended 31 December 2024. This is my
first report to shareholders since being appointed
as Chair of the Committee on 1January 2025.
Tim Cobbold was Chair of the Committee for
the whole of Rotork’s 2024 financial year,
stepping down on 31 December 2024. Tim had
been Chair of the Committee since April 2019 and
I would like to express my thanks to Tim for his
diligent service as Committee Chair and his
support in ensuring a smooth handover.
2024 was another successful year for Rotork,
during which it continued to build on the strong
track record of recent years, and continued to
implement the Growth+ strategy under Kiet
Huynh’s leadership. Decisions on directors’ and
senior managers’ compensation were taken
thoughtfully during the year, having regard to
wider workforce considerations and the overall
employee experience.
Rotork’s purpose of ‘Keeping the World Flowing
for Future Generations’ is reflected in the
Company’s strategy, Growth+. Rotork’s values
and cultural DNA serve to guide the way in
which the Company’s executive team and
employees continue to drive the implementation
of Growth+, and this has been reflected in the
remuneration decisions taken during the year.
My fellow Committee members and I believe
that the current Remuneration Policy, which will
remain in force until April 2026, continues to
support the strategic goals of the business and
aligns with market practice.
Priorities and key activities for the
Committee in 2024 included:
• Determining and approving the
remuneration-related terms of Ben Peacock’s
appointment as Chief Financial Officer in
March 2024, andapproving appropriate
personal objectives for Ben, which formed
part ofhisoverall remuneration package.
health and safety measure, which accounts
for 50% of the ESG measure in the annual
bonus target for 2024. To more closely align
with industry reporting best practice for
health and safety metrics, the existing lost
time injury rate (LTIR) measure was replaced
with the total recordable incident rate (TRIR).
Thisdecision was taken given the progress
made by the Company to reduce the LTIR
and(at management’s suggestion) it was
feltappropriate to switch to the TRIR, as it
representsatougher measure of health and
safety performance. This is because the TRIR
measures incidents whether they result
inworking time lost or not (whereas LTIR
isweighted to the duration of time lost
following an event). The adoption of TRIR
therefore supports the continuing drive to
improve health and safety performance
within Rotork. TheESG measures as a whole
continue torepresent 10% of the annual
bonus opportunity and there continues to be
no overlap between the ESG measures in the
annual bonus opportunity and the LTIP.
• As part of its ongoing responsibility to
makedecisions about the remuneration of
executive directors and senior management
in the context of the pay and benefits
available to the wider workforce, the
Committee undertook an annual review of
employee payand benefits. As part of this
review, the Committee considered how
Rotork balances the need to attract and
retain talent through locally relevant pay
andbenefits offerings, whilst ensuring
equityof benefits across thebusiness.
The Committee’s approach to
remuneration in 2024
The Committee’s approach to remuneration
in2024 across Rotork in general and for the
executive directors and senior managers, for
whom the Committee is explicitly responsible,
was guided by Rotork’s key remuneration
principles. The approach was based on an
ongoing sensitive appreciation of the business’
performance and the experience of shareholders
and employees during the year. The Committee’s
specific considerations are described below.
Business performance
In the Committee’s view, as is evident in this
Annual Report and Accounts, Rotork continued
to perform well. On a reported basis 2024
adjusted operating profit was £178.4m, 8.5%
upon 2023. Whilst revenue was 4.9% higher.
Adjusted operating margins were 70bps higher.
The Committee noted that Rotork’s order intake
increased by 2.8% against 2023. Overall, the
figures demonstrate the underlying health of
thebusiness and the continued strong progress
achieved in thedelivery of the Growth+ strategy
and target segment focus.
Shareholder experience
Rotork’s share price was modestly up during
2024 and a progressive dividend was delivered
to shareholders. Rotork remains a highly
cash-generative business and consistent with its
capital allocation policy, the Company returned
£50m of cash to shareholders as part of a share
buyback programme which ran between March
and December 2024.
Employee experience
Under the leadership of the Board and the
Rotork Management Board, Rotork’s approach
continues to be to protect the health (including
mental health) and financial wellbeing of its
employees, and remains mindful of obligations
to other stakeholders. Whilst the cost challenges
linked to globally high inflation rates cooled in
many countries during 2024, we continue to
monitor the cost of living for all our employees
and the experience of our employees has again
been considered by the Committee within its
own decision making.
Rotork Annual Report 2024 rotork.com132
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
In recognition of our responsibility to help reduce
inequality and to contribute to a fairer society
more broadly, Rotork committed to a Real Living
Wage Policy in 2020 and, since then, has ensured
any employee is paid above this level where a
published rate exists in a country. Rotork is an
accredited Real Living Wage Employer.
Our Fair Pay Framework continues to guide
Rotork’s reward policies, procedures, systems
and decision making globally in support of the
commitment to deliver fair and competitive
remuneration in line with the remuneration
principles. This provides assurance that processes
are non-discriminatory and operate to help
reduce any gender or ethnicity pay gaps. All new
employees are made aware of the Framework in
their global induction. Additional training is also
provided to all decision makers within the business
to ensure that the Framework is understood and
decisions are also moderated by the HR function
to ensure fair implementation.
Overall, the Committee’s assessment of the
employee experience is that Rotork has acted
responsibly towards all employees and has
proactively supported their health (including
mental health) and their financial wellbeing
during 2024. The Committee also believes that
Rotork has maintained a pay culture, pay policies
and frameworks that support wider societal
views through 2024.
Remuneration outcomes for 2024
Salary review
As was the case in 2023, the salary review for
the directors and the Rotork Management Board
members was not brought forward to January
2024 as it was for the wider workforce, and any
changes for them took effect from 1 April 2024.
In line with the arrangements made on his
appointment (and detailed in the 2021, 2022
and 2023 Remuneration Reports), Kiet Huynh’s
salary as CEO was increased to £682,950, an
increase of 50% of the difference between his
salary and the former CEO’s salary plus an
annual increase of 4.2%, which was lower than
the average increase for the UK workforce
(excluding promotions) of 4.4%. The Committee
was aware that when both these elements were
taken together this resulted inatotal increase
ahead of that for the wider workforce in the UK.
However, as has been explained in previous
Remuneration Reports, theCommittee’s
intention was that, following his appointment
and subject to performance, Kiet’s salary would
be increased, over a period of approximately two
years, to the level of his predecessor’s salary in
2021, indexed inline with increases to the other
directors, with such increases being no higher
than those awarded tothe wider workforce. The
Committee believes Kiet’s salary review was fully
merited, given his strong performance.
Ben Peacock joined Rotork on 11 March 2024 as
Chief Financial Officer, with an annual starting
salary of £430,000. As was explained last year,
Ben’s first salary review was not intended to be
before 1 April 2025 and details about this are set
out on the following pages.
Jonathan Davis stepped down from his role as
Group Finance Director and as an executive
director following the conclusion of the AGM
on30 April 2024. Jonathan remained with the
Company as an employee to ensure a smooth
handover until he retired on 10 September 2024.
Jonathan’s salary was increased by 4.2%
(anincrease lower than that of the average
workforce increase in the UK) to £406,480
witheffect from 1 April 2024.
The Chair’s fee was increased by 4.2%, from
1April 2024 onwards, in line with the executive
directors’ increase, meaning this was also below
the average workforce increase. The Board also
determined that the non-executive director base
fee should also increase by 4.2%. No increases
were made to the supplementary fees payable
tothose directors with additional responsibilities
during 2023; therefore, from 1 April 2024
onwards a small increase in certain
supplementary fees was made.
Annual bonus
The annual bonus targets for 2024 were based
on: adjusted operating profit performance
(60%of opportunity); cash generation (15% of
opportunity); ESG measures (10% of opportunity)
including total recordable incident rate (TRIR),
together with a mix of quantitative targets
covering culture and engagement scores and
qualitative targets focused on environmental
andcustomer focused innovation; and individual
personal objectives (15% of opportunity). For full
details see pages 147 to 149.
Having reviewed performance against these
targets, including the personal objectives, the
Committee decided that the level of payout,
expressed as a percentage of the maximum
opportunity, should be 87.90% for Kiet Huynh,
88.90% for Ben Peacock, and 87.90% for
Jonathan Davis, with Ben’s and Jonathan’s
bonuses both being pro-rated for time served,
and with no need for discretion to be applied in
any instance. In approving this level of payout
for the executive directors, the Committee noted
that at this level:
• The 2024 payout results in an award, as a
percentage of the maximum opportunity, at
an average of 9.0 percentage points lower
than in 2023, compared to an adjusted
operating profit increase of 8.5%.
• The payout results in an award for the CEO
of131.85% of salary compared to 146.3%
for 2023. As the CFO joined the Company in
March 2024, the bonus payout was pro-rated
for time served and no 2023 comparative
figure is available.
• The 2024 payout for employee groups in
thewider workforce averaged 86% of the
normal maximum opportunity. The normal
maximum opportunity was exceeded because
performance hit the stretch targets that are
an element of the wider workforce bonus
scheme. This represents an increase of 8.5
percentage points on 2023, compared to an
adjusted operating profit increase of 8.5%.
Annual statement by the Chair of the Remuneration Committee continued
The Committee’s approach to
remuneration in 2024 continued
Employee experience continued
In a similar way to the change made to the
2023annual salary review, the 2024 annual salary
review, which would have ordinarily been due on
1April 2024, was brought forward to 1January 2024
for all employees below the directors and Rotork
Management Board. The average pay increase for
the UK workforce (excluding promotions) was 4.4%
in 2024, and 4.9% globally.
Salary reviews for all directors and the Rotork
Management Board remained effective from the
usual date of 1 April 2024. As a matter of policy,
normally salary reviews for executive directors
will be no higher than the average increase for
the wider workforce for the country in which
they work. However, the Remuneration Committee
retains the discretion to award higher increases
where appropriate (for example, to reflect
progression in the role or increased experience
ofthe individual).
All employees in Rotork continue to participate in
a discretionary bonus scheme with targets based
on a combination of the performance of their
localbusiness and the performance of the Group.
Bonus awards in respect of 2024, to be paid in
2025, are at an average of 86% of maximum,
reflecting our strong performance in 2024.
The business continued to support the physical
and mental health of employees through the
global Employee Assistance Programme (EAP).
Our independent charity, the Rotork Benevolent
Support Fund, maintained support for employees,
ex-employees and their families suffering hardship.
The employee response rate to the externally
facilitated annual employee engagement survey
was high, with 80% (2023: 79%) of employees
participating in the survey, demonstrating good
engagement levels. As in previous years, the
survey included the question ‘how do you rate
Rotork as a place to work?’. This question scored
7.14/10 in 2024.
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual statement by the Chair of the Remuneration Committee continued
Remuneration outcomes for 2024
continued
Annual bonus continued
The Committee was therefore satisfied that
thebonus award to the executive directors
wasaligned with Rotork’s key remuneration
principles and the performance of the business
and was appropriate and fair in comparison with
the wider workforce.
Under the Remuneration Policy, any annual
bonus awarded to executive directors greater
than 60% of maximum opportunity is deferred
in shares for three years under the Deferred
Annual Bonus Plan. Accordingly, in respect
ofthe annual bonus award for 2024, 41.85%
36.13% and 34.88% of salary (pro-rated
fortime served where relevant) for each of
KietHuynh, Ben Peacock and Jonathan Davis
respectively will be deferred in shares for three
years under the Deferred Annual Bonus Plan.
LTIP
The outturn for the 2022 LTIP award, which
vests in March 2025, is based equally on growth
in adjusted earnings per share (EPS), relative total
shareholder return (TSR) over three years and the
rate of growth in economic profit (a return on
invested capital measure) over the three financial
years to December 2024.
The outcomes of each of the performance
measures over the three-year period were as
follows. Adjusted EPS grew by 41.2% over
theperiod, exceeding the requirement of 35%
growth for maximum vesting, resulting in 100%
vesting for this part of the award. Rotork’s
relative TSR ranking within its comparator group
was insufficient for vesting of the TSR tranche.
Economic profit (ROIC) was £190.3m, exceeding
the target of £128.4m required for threshold
vesting, resulting in 67.4% vesting for this part
of the award. When taken together, this resulted
in an overall level of vesting of 55.8% for the
2022 LTIP award. Having reviewed share price
movements in the three-year period, the
Committee is satisfied that no windfall gains
were made in relation to the 2022 LTIP. The
Committee was also satisfied that no element
ofdiscretion needed to be applied against the
formulaic vesting outcomes.
During the year, LTIP awards were made to the
executive directors, a group of senior managers
and a number of less senior, high-performing
and talented employees. In accordance with
Policy, the award levels granted were 200% of
salary for the CEO and 175% of salary for the
CFO. No LTIP award was granted to Jonathan
Davis in 2024. The Committee will, at vesting,
aspart of its normal review of formulaic
remuneration outcomes, explicitly look at the
value of these awards relative to the shareholder
and employee experience over the same period.
All recipients accepted this in writing, as a
condition of receipt of the award.
Arrangements related to the
appointment of Ben Peacock as
ChiefFinancial Officer
As previously disclosed, certain elements of
BenPeacock’s remuneration from his previous
employer were bought out as part of Ben
beingappointed as Chief Financial Officer on
11March 2024. The arrangements were all in
line with the approved Remuneration Policy,
andfurther details of such arrangements can
befound on pages 143 and 144.
Overall level of remuneration in 2024
The Committee carefully considered the extent
to which the overall remuneration outturn for
executive directors, taking the salary review,
annual bonus and 2022 LTIP outturns together,
reflected the substantive performance of the
business and both the shareholder and employee
experience during the year. The Committee
wassatisfied that the overall outcome was fair,
appropriate and proportionate and in line with
the pay culture and approach within Rotork.
Full details of the targets and performance
against those targets for both the Annual Bonus
Plan and the 2022 LTIP are set out on pages
147to 150.
Looking forward to remuneration
in2025
The structure of remuneration in 2025 will be
consistent with that of 2024 and in accordance
with the current Remuneration Policy approved
by shareholders on 28 April 2023.
2025 Salary review
In reviewing the salaries of the executive
directors and Rotork Management Board, the
Committee was conscious that the average
increase for the wider workforce in the UK
(excluding promotions) was 3.9%. Following two
consecutive years of wider workforce salary
increases taking effect in January, the Company
took the decision to revert back to prior practice
and, therefore, any workforce salary increases
will now take effect from 1 April 2025. This
would re-align the timing of increases for the
workforce with (any) increases awarded to the
directors and Rotork Management Board. However,
to compensate those in theworkforce for the
time re-alignment (but not directors or senior
management), a one-off payment would be
made in April 2025, in lieu of a notional salary
increase for the first three months of the year.
Kiet Huynh, Chief Executive Officer
Kiet Huynh will receive a basic salary increase
of3.9%, in line with the wider UK workforce
increase (excluding promotions), taking his
salaryto £709,585, effective from 1 April 2025.
Ben Peacock, Chief Financial Officer
Ben Peacock was appointed as CFO with effect
from 11 March 2024, receiving an annual salary
of £430,000 from that date. As set out in last
year’s Remuneration Report, the Committee
intended that the first salary review would be
on1 April 2025. Since appointment, Ben has
developed and performed strongly in his role.
The Committee was also very conscious that
Ben’s starting salary was significantly below the
mid-market level, when benchmarked. Therefore,
the Committee has awarded Ben a basic salary
increase of 6%, taking his salary to£455,800,
effective from 1 April 2025. This is to ensure that
Ben’s salary does not fall too far below the
mid-market level. Following this increase, Ben’s
salary will be just below the lower quartile salary
level for CFOs of companies that have a similar
market capitalisation to Rotork.
2025 Chair and non-executive
directors’ fees
The Committee conducted a review of the
Chair’s and non-executive directors’ fee levels
against both relevant UK sector companies and
UK listed companies with a similar market
capitalisation to Rotork. As a result, the fee for
the Chair will increase by 18% from 1 April 2025.
The increase will bring the Chair’s fee to the
mid-market level against UK listed companies
with a similar market capitalisation to Rotork,
but would still be below that of the mid-market
level of relevant UK sector companies.
The non-executive director base fee and their
fees for additional responsibilities (excluding the
Senior Independent Non-executive Director fee)
will increase by 3.9% (in line with the wider UK
workforce increase (excluding promotions)) from
1 April 2025, as approved by the Board. The fee
for the Senior Independent Non-executive
Director will increase by 13.3% from 1 April 2025,
bringing the fee closer to the mid-market level of
relevant UK sector companies and the mid-market
level of UK listed companies with a similar
market capitalisation to Rotork. The Chair’s
andnon-executive directors’ fees effective
from1 April 2025 are set out on page158.
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
2025 Chair and non-executive
directors’ fees continued
Pensions
In Rotork, the UK basic rate of pension is 9%
butas Rotork passes on savings in National
Insurance (NI) from the sacrificed salary to
employees, the majority pension contribution
rate in the UK is 10.24% at current NI contribution
levels. In accordance with the current Remuneration
Policy, the pension allowance for the executive
directors is aligned to the contribution available
for the majority of the wider workforce. As at
the date of this report, this is 10.24%. This rate
will increase to 10.35% for both the executive
directors and the wider UK workforce from
1April 2025, in line with the changes introduced
to increase UK employer NI contribution levels.
2025 Annual bonus opportunity
In line with the current Remuneration Policy
themaximum opportunity for Kiet Huynh and
Ben Peacock will be 150% and 125% of salary
respectively. The performance metrics, which
areunchanged from 2024, will be:
• Adjusted operating profit performance (60%
of opportunity) – the bonus plan is based on
the 2025 budget approved by the Board.
• Cash generation (15% opportunity) – the
target to achieve the maximum outturn will
remain at 110%, reflecting the importance of
the sustained focus on cash generation.
• ESG (10% of opportunity) – measures will be
aligned to the three pillars of the sustainability
strategy, as set by the Safety and Sustainability
Committee, but exclude environmental
emissions reductions which will be part of the
LTIP opportunity. Half of the opportunity will
continue to be based on the TRIR health and
safety measure, with a threshold set at 0.24
and a maximum at 0.20. The other half of the
opportunity will be split across quantitative
targets set to cover culture and employee
Annual statement by the Chair of the Remuneration Committee continued
engagement scores, and qualitative targets
focusing on environmental innovation,
particularly in relation to products.
• Strategic personal objectives (15% of
opportunity) – these will be set for the
executive directors with a focus on the
continued strategic development and
innovation of the business and delivery of the
Growth+ strategy.
In accordance with the Remuneration Policy, any
annual bonus payout in excess of 60% of the
maximum opportunity will be deferred in shares
under the Deferred Annual Bonus Plan.
As is usual, executive directors will be invited to
participate and must agree in writing to all the
conditions pertaining to the Annual Bonus Plan,
including those relating to malus and clawback
and to the post-cessation of employment
shareholding arrangements that will apply to the
portion of the annual bonus deferred in shares.
2025 LTIP
In line with the current Remuneration Policy, the
maximum opportunity for Kiet Huynh as CEO
and Ben Peacock as CFO will be 200% and
175% of salary respectively.
The structure of the 2025 LTIP performance
conditions and metrics (with a three financial year
performance period) will be as set out below:
• Adjusted EPS (30% of opportunity) – the
threshold and maximum are set at 9% and
35% growth over the 2024 adjusted EPS by
the end of 2027 respectively.
• Relative TSR (30% of opportunity) – the
maximum outturn will be achieved if TSR is
inthe topquartile relative to the constituents
oftheFTSE 350 Industrial Goods and
Servicessector.
• Economic profit (ROIC) (30% of opportunity)
– performance will be measured against the
long-term plan for the business. Maximum
award will require a growth rate over the
period equivalent to more than 11.2% CAGR
in profit after tax.
• Absolute reduction in scope 1 and 2 CO
2
emissions from a 2020 base (10% of
opportunity) – maximum performance will
represent a reduction of 50% by the end of
2027 which is at least as demanding as the
path required to meet the published 2030
SBTi target. Threshold performance will
represent a reduction of 46%.
The proportion of maximum earned at threshold
performance is no more than 25% for all
fourmeasures.
The LTIP awards will attract dividend equivalents
in the form of additional shares and will be
subject to the same post-vesting holding period
requirements. The awards will be made in the
normal course following the publication of the
full-year results and subject to the executive
directors agreeing in writing to all the conditions
under which the awards are made, including the
appropriate malus and clawback and post-cessation
of employment shareholding arrangements that
will apply to these awards.
Wider workforce remuneration matters
Our key remuneration principles provide the
foundation for a fair pay agenda at Rotork and
this has been reflected in our approach to pay
and remuneration during 2024.
We look to apply the key remuneration
principles, along with our Fair Pay Framework,
consistently through the business and we seek
toensure that there is consistency in how we
structure pay so that performance measures and
incentives reinforce the right behaviours in the
business. If specific actions are necessary to
satisfy governance expectations or are required
under the Remuneration Policy, these are made
once the right remuneration structure for the
business has been set.
Our Fair Pay Framework helps ensure standards
are met throughout our operations globally,
including ensuring our approaches and decisions
are non-discriminatory.
The Committee keeps the business’ performance
on any potentially discriminatory factors under
regular review. Gender pay gap metrics are
reviewed each year before they are published, as
is the gender-based distribution of pay increases,
promotions and bonus awards. We have also
focused our attention on pay and ethnicity and
the Committee now reviews these metrics in
addition to gender-related metrics. We have
again published our ethnicity pay gap alongside
our Gender Pay Report.
Recruitment processes are reviewed to help
remove potential bias in order to help the
business have access to the whole talent pool
and to help ensure that there is no bias against
any potential employees.
The Company considers employee participation
in the success of the business to be a key part
ofthe Company’s overall remuneration strategy
which aligns the interests of employees and
shareholders and helps to recruit, retain and
motivate employees at all levels within the
Group. The Company offers discretionary annual
bonus opportunities to all employees, regardless
of role, offers share ownership schemes where
practicable and delivers a profit-sharing
programme to the vast majority of employees.
The Committee believes that this approach
provides a meaningful and important incentive
to employees in promoting share ownership at
all levels in the Group.
Notwithstanding the considerable progress that
has been made, we set ourselves high standards
and will continue to review and update our
approaches and continue to commit to doing
the right thing. More details are provided in the
‘Making a positive social impact’ section on
pages 57 to 63.
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual statement by the Chair of the Remuneration Committee continued
How the Remuneration Committee
operates and note of thanks
The Committee is currently comprised of three
independent non-executive directors and was
comprised as such at all times throughout 2024.
Certain independent non-executive directors
either retired from or were appointed to the
Board of the Company during 2024, and
consequently, the Committee was reconstituted
during the year to reflect these changes. Andrew
Heath joined the Committee on 1 May 2024 and
has brought valuable insight. There is now a
stronger link between the Committee and the
Safety and Sustainability Committee, given
Andrew’s role as Chair and Karin’s role as member
of the Safety and Sustainability Committee.
I joined the Committee as Chair on 1 January 2025,
succeeding Tim Cobbold, who stepped down
from the Board on 31 December 2024. I would
like to express my thanks on behalf of the
Committee to Tim for his diligent work during
his time on the Committee, especially during
histenure as Committee Chair since April 2019.
The Committee meets a minimum of three
timesa year and would hold additional meetings
for any ad hoc business requirements that arise.
Members of the Committee also hold discussions
as required outside of the formal meetings.
During 2024, the Committee met formally four
times. Details of members’ attendance at each
of the meetings are provided on page 102. The
Group General Counsel & Company Secretary
acts as secretary to the Committee.
The Remuneration Committee is keen to ensure
that its deliberations and decisions are undertaken
in the fullest context of the business and taking
into account how employees across the Group
are rewarded, as well as ensuring that its
decisions are made in the most transparent
manner possible. To that end, the Committee
invites the Chief Human Resources Officer to its
meetings to provide this wider context and to
ensure that all its decisions remain aligned with
Rotork’s values and culture, which we seek to
nurture within the business as it achieves the
Growth+ strategy.
The Board Chair is invited to attend meetings
and provides input relating to the performance
and remuneration of the Chief Executive Officer
and Chief Financial Officer. The Chief Executive
Officer and Chief Financial Officer are invited
toattend parts of certain meetings but are
notpresent when their own remuneration is
considered. A representative from the Committee’s
remuneration advisers, Korn Ferry, attends
Committee meetings to provide independent
remuneration and ancillary governance advice.
I would like to note my thanks to Committee
members, past and present, for their important
contribution to the operation of the Committee
throughout 2024 and to all our colleagues across
the business for their hard work and support
during the past year.
Remuneration Committee evaluation
The Committee carried out an internally facilitated
review of its performance as part of the overall
internal Board and Committee evaluation in
2024 and its findings were discussed by the
Committee and the Board. Upon joining the
Committee as Chair at the start of the year,
Iwas pleased to learn that as part ofthe review
process, the Committee reviewed how it had
discharged its responsibilities. It was concluded
that the Committee continued to fulfil its duties
effectively and had worked through issues in a
focused and thoughtful way, whilst collaborating
when necessary with the other Board Committees
especially on matters such as financial performance
and assurance ofsustainability data relevant to
remuneration arrangements. Some opportunities
for continued improvement were identified as
part of the Committee’s performance evaluation.
The key areas of focus for 2025 are to ensure an
effective and smooth handover of the Chair’s
responsibilities and to ensure the continued quality
of discussions in relation to remuneration matters.
The Terms of Reference for the Remuneration
Committee were last reviewed in October 2024.
A copy of the current Terms of Reference
ispublished on Rotork’s website at:
www.rotork.com/en/investors/committees.
Svein Richard Brandtzæg
Chair of the Remuneration Committee
10 March 2025
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Implementation of our Remuneration Policy in 2024
Purpose Element Kiet Huynh (Chief Executive Officer) Ben Peacock (Chief Financial Officer) and Jonathan Davis (previous Group Finance Director)
1
Attract and retain high-calibre
executive directors
Salary
2
£666k Ben Peacock: £347k; Jonathan Davis: £131k
Benefits Benefits comprise a car allowance, personal accident and private medical insurance, cash amounts pursuant to the sale of any unused annual leave
allowance and life assurance. Ben Peacock also received contributions towards relocation costs such as flights, temporary accommodation, use of a
relocation company and shipping costs.
Pension Fixed at rate available to the majority of the workforce in the country in which the director operates. As at the date of this report in the UK this is
10.24% of salary. This rate will increase to 10.35% for the directors and the wider UK workforce from 1 April 2025, in line with the changes to
increase UK employer national insurance contribution levels.
Drive and reward short-term performance Annual bonus 150% of salary maximum (90% salary on target). 125% of salary maximum (75% salary on target).
Based on profit, cash generation, ESG and personal targets. There is a deferral of any annual bonus earned above 60% of the maximum opportunity
for three years in Rotork plc shares.
Incentivise long-term value creation and provide
alignment with shareholders
Long Term
Incentive
Plan(LTIP)
200% of salary performance share award. For Ben Peacock only: 175% of salary performance share award.
3
Based on adjusted earnings per share (EPS), relative total shareholder return (TSR), growth in economic profit assessed over a three-year performance
period (ROIC) and absolute reduction in scope 1 and 2 CO
2
emissions with targets aligned to the accredited, published 2030 SBTi targets. A two-year
post-vesting holding period applies, together with malus and clawback provisions.
Provide alignment with shareholders
Shareholding
requirements
350% of salary. 300% of salary.
Executive directors are required to build a shareholding equal to their variable pay opportunity within five years of appointment. A requirement to
hold 200% of salary in shares will apply for two years after cessation of employment (but does not apply to shares held which were purchased with
the executive’s own funds) subject to the shares having been acquired from share awards made after the approval of the 2020 Remuneration Policy.
Total remuneration opportunity at on-target performance £1,756k Ben Peacock: £1,025k
Actual total remuneration for 2024 £2,242k Ben Peacock: £1,150k; Jonathan Davis: £612k
1 Ben Peacock was appointed as Chief Financial Officer (an executive director) on 11 March 2024 and received buy-out awards as part of his joining arrangements, which are explained on page 144. Jonathan Davis stepped down from his role as Group Finance
Director (and as an executive director) following the conclusion of the AGM on 30 April 2024. Jonathan Davis remained with the Company as an employee, ensuring a smooth handover, until he retired on 10 September 2024.
2 The figure stated reflects the actual amounts received during the financial year. As at 31 December 2024, Kiet Huynh’s annual salary was £682,950 and Ben Peacock’s annual salary was £430,000.
3 Jonathan Davis did not receive an LTIP award during 2024.
Performance outcomes for the 2024 financial year
The table below sets out how the annual bonus and LTIP awards have vested for the financial year ended 31 December 2024 based on performance against target.
Award Measure Performance Kiet Huynh Ben Peacock and Jonathan Davis
2024 annual bonus • Profit (60%)
• Cash generation (15%)
• ESG (10%)
• Personal and strategic (15%)
• 51.4% achieved
• 15.0% achieved
• 8.5% achieved
• K Huynh: 13% achieved
• B Peacock: 14% achieved
• J Davis: 13% achieved
• 87.9% of maximum awarded • 88.9% of maximum awarded to
BenPeacock
• 87.9% of maximum awarded to
JonathanDavis
2022 LTIP award • EPS growth (33%)
• TSR (33%)
• Economic profit (33%)
• 100% of maximum
• 0% of maximum
• 67.4% of maximum
• 55.8% of maximum vesting • Jonathan Davis: 55.8% of
maximumvesting
1
1 Jonathan Davis’s 2022 LTIP award was also pro-rated for time served during the performance period.
Remuneration at a glance
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How our Remuneration Policy supports Rotork’s strategy
Our Remuneration Policy has been developed to enable Rotork to recruit and appropriately reward
an executive team of the calibre required to lead our global business to deliver the superior outcomes
for all our stakeholders. We aim to pay competitively against the talent pools from which we recruit
with a significant proportion of pay linked directly to the performance of the business and delivered
in Rotork’s shares to ensure strong long-term alignment with shareholders.
Our aim is to deliver strong and sustainable margins, consistent year-on-year growth in revenues and
profit and a high return on capital which, combined with our asset-light model, delivers strong cash
generation. The financial measures in our incentive plans reflect these priorities and our long-term
financial objectives. The introduction of explicit ESG measures during 2023 reflects the strategic
importance of ESG in Rotork.
Strategic priorities Bonus LTIP
Innovation • Strategic targets • Economic profit (ROIC) measure
Operational
excellence
• Cash generation measure and
personal performance targets
• Not applicable
Growth • Profit measure • Total shareholder return measure
• Earnings per share measure
Sustainability • ESG (including safety) measures
• Deferral into shares
• Malus and clawback provisions
• Five-year time horizon (three-year performance
period and two-year holding period)
• Malus and clawback provisions
• Absolute reduction in scope 1 and 2 CO
2
emissions with targets aligned to the accredited,
published 2030 SBTi targets
Remuneration at a glance continued
Performance measures
Performance measures are used to determine the extent of any awards made under the variable
elements of the executive directors’ remuneration, both annual bonus and LTIP. The performance
measures are selected because oftheir use as key performance indicators (KPIs) to assess Company
performance and to align the interests of the directors to those of the shareholders. Non-financial
KPIs constitute part of the annual bonus award and these are selected to ensure that performance
measured by financial KPIs is not delivered at the expense of important non-financial considerations,
specifically safety and sustainability.
The measures currently used each fulfil a distinct purpose as set out below:
Measure Used in Purpose
Adjusted operating profit Annual bonus Maintains focus on annual profits.
Cash generation Annual bonus Maintains discipline on managing inventory and receivables.
ESG measures Annual bonus Focus on health and safety, employee engagement,
diversity and product environmental impact.
LTIP Absolute reduction in scope 1 and 2 CO
2
emissions (2020
base year) with targets at least as demanding asthe path
required to meet the published 2030 SBTitarget.
Strategic objectives Annual bonus Provides a balance to financial delivery which reflects
activities that contribute to the longer-term success
oftheGroup. These include environmental targets.
Adjusted earnings per share LTIP Adjusted EPS is a key measure for analysts who cover
Rotork and reflects long-term growth in profits.
Relative TSR LTIP Reflects the long-term growth in the value of
shareholders’ investment in Rotork.
Economic profit (ROIC) LTIP Captures the cost of the capital required to operate the
business and instils discipline around capital usage into
financial decision making.
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Overview of the Remuneration Policy report
This section sets out a summary of Rotork’s
Directors’ Remuneration Policy (the Policy),
which was approved by shareholders in a
binding vote at the AGM held on 28 April 2023
and became effective on that date. The
Committee’s intention is that the current Policy
will operate for the three-year period up to the
AGM held in 2026. The full Policy can be
foundin the2022 Annual Reports and
Accounts, which isavailable on the Company’s
corporate website at the following location:
www.rotork.com/en/investors/financial-
reporting-centre.
Remuneration Policy report
Directors’ Remuneration Policy
Element of
remuneration
Purpose and how it supports
thestrategy How the element operates Maximum amounts payable Framework used to assess performance
Base salary
To attract and retain
executive directors of the
right calibre and provide
acore level of reward for
therole.
Salary levels (and subsequent salary increases) are set after taking into account
the responsibilities of the role, the value of the individual in terms of skills,
experience and personal contribution, Company performance, internal relativities
and pay conditions, and external market data (benchmarked against companies
of a similar size and complexity and other companies in the same industry sector).
The Remuneration Committee also considers the impact of any increase to
salaries on the total remuneration package.
Salaries are paid monthly and normally reviewed annually (salaries are normally
reviewed in February, with any changes effective from 1 April).
Details of the current salaries of the executive
directors are set out in the Annual Report
onRemuneration.
Normally, future salary increases will be no higher
than the average increase (as a percentage of
salary) applied to the UK workforce. However, the
Remuneration Committee retains the discretion to
award higher increases if appropriate (for example,
to reflect progression in the role or increased
experience of the individual).
N/A
Benefits
To attract and retain
executive directors of the
right calibre by providing
amarket competitive level
ofbenefit provision.
The range of benefits that may be provided is set by the Remuneration
Committee after taking into account local market practice in the country where
the executive director is based or has relocated from and suitable benefits,
including compensation for increased taxation where an individual is relocating
from one country to another.
Standard benefits for executive directors’ benefits comprise a car allowance,
personal accident insurance, private medical insurance and life assurance.
Additional benefits may be provided, as appropriate, including travel benefits
forexecutives working away from their home country.
Executive directors are also entitled to participate in all-employee share plans
onthe same basis as other employees based in the same country.
Any reasonable business related expenses may be reimbursed (including any
taxifdetermined to be a taxable benefit).
There is no prescribed maximum level, but the
Remuneration Committee monitors the overall cost
of the benefit provision to ensure that it remains
appropriately proportionate.
N/A
Pension
To provide a market
competitive remuneration
package to enable the
recruitment and retention
ofexecutive directors.
The Company may fund contributions to a director’s pension as appropriate.
Thismay include contributions to a money purchase scheme and/or payment
ofacash allowance where appropriate.
No higher than the percentage of salary available
to the majority of the workforce for the country
inwhich the executive director operates.
N/A
Key remuneration principles
The Remuneration Committee remains committed towards remuneration being:
• Performance driven, competitive and fair.
• Motivating, affordable and proportionate.
• Aligned to shareholders’ interests.
• Globally relevant and transparent.
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Remuneration Policy report continued
Element of
remuneration
Purpose and how it supports
thestrategy How the element operates Maximum amounts payable Framework used to assess performance
Annual bonus
Drives and rewards
performance against annual
financial and operational
goals which are consistent
with the medium to
long-term strategic needs
ofthe business.
Bonus up to 60% of the maximum opportunity is paid in cash. Any bonus
awarded in excess of 60% of the maximum is deferred into shares for three years.
Dividend equivalents may be paid on the deferred shares on vesting. The
Remuneration Committee retains discretion to adjust the number of deferred
shares in the event of a variation in the capital of the Company and/or to settle
the award in cash.
The maximum annual bonus opportunity is 150%
of salary.
Details of the current annual opportunity are set
out in the Annual Report on Remuneration.
For each measure, normally a sliding scale of
stretching targets is set by the Remuneration
Committee. The threshold level of bonus under
each financial measure varies but accounts for no
more than one third of the maximum bonus
opportunity under any single measure.
The annual bonus is focused on the delivery of
strategically important performance measures.
These include demanding financial and non-financial
measures. Financial measures will account for
themajority.
Under the terms of the bonus plan, the Remuneration
Committee has the discretion, in exceptional
circumstances, to amend previously set targets or
to adjust the proposed payout to ensure a fair and
appropriate outcome.
LTIP
To incentivise long-term value
creation and alignment with
shareholder interests.
The LTIP permits an award of shares to be granted which vests subject to
performance and continued employment. The LTIP awards will be granted in
accordance with the rules of the plan (which includes the ability to award
dividend equivalents on shares that vest) which were approved by shareholders
in2019, and the discretions contained therein.
Awards under the LTIP may be granted in the form of conditional shares,
forfeitable shares, nil-cost options or cash (where the award cannot be settled
inshares).
Directors must retain any shares vesting (net of tax) until the fifth anniversary
ofgrant.
The maximum LTIP opportunity is 200% of salary.
Details of the current award levels are set out in
the Annual Report on Remuneration.
Awards under the LTIP are subject to performance
conditions, measured over three financial years,
currently being adjusted EPS, economic profit and
TSR. Different measures may be used for future
award cycles.
A sliding scale of targets is set for each measure
with no more than 25% of the award (under each
measure) vesting for achieving the threshold
performance hurdle.
The performance targets are set prior to the grant
of each award. Different measures, targets and/or
weightings between measures may be set for
future award cycles.
Under the LTIP rules approved by shareholders,
theRemuneration Committee has the discretion
toamend the targets applying to existing awards
inexceptional circumstances providing the new
targets are no less challenging than originally
envisaged. The Remuneration Committee also has
the power to adjust the number of shares subject
to an award in the event of a variation in the capital
of the Company.
Shareholding
guideline
To provide alignment with
shareholders by requiring
executives to build and
maintain a meaningful
shareholding in Rotork.
The executive directors are also subject to a requirement during their period of
employment to build and maintain a shareholding in Rotork equivalent to the
combined annual award opportunity under their bonus and LTIP. It is expected
that this requirement will be achieved within five years of appointment.
Following the cessation of their employment, executive directors are required
toretain for a further two years any shares held that have vested to them under
the Group’s share plans after 24 April 2020 (subject to a maximum holding
requirement of 200% of final salary).
N/A N/A
Directors’ Remuneration Policy continued
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Remuneration Policy report continued
Element of
remuneration
Purpose and how it supports
thestrategy How the element operates Maximum amounts payable Framework used to assess performance
Chair and
non-executive
directors’ fees
To attract and retain
non-executive directors
ofthe right calibre.
Fees for the Chair and non-executive directors are normally reviewed annually.
Non-executive director fees are determined by the Chair and the executive
directors. The fees for the Chair are determined by the Remuneration Committee.
The fees for the non-executive directors comprise a basic Board fee, with
additional fees paid to the Senior Independent Non-executive Director,
Committee Chairs, the Non-executive Director for Workforce Engagement, and
other similar Board responsibilities. Additional fees may be paid for additional
temporary responsibilities.
Any reasonable business-related expenses may be reimbursed (including tax
thereon if determined to be a taxable benefit).
The maximum aggregate fee level is as specified
inthe Group’s Articles of Association
(currently£1,000,000).
The fee levels are set by reference to rates in
companies of comparable size and complexity.
Thefee levels are reviewed periodically taking into
account the responsibilities of the role and the
time commitment of the individual.
N/A
Malus and clawback
The payment of any bonus is at the ultimate
discretion of the Remuneration Committee
which also retains an absolute discretion to
reclaim or withhold some, or all, of any annual
bonus paid in exceptional circumstances, such
asmisstatement of results, an error in the
calculation of the performance targets and/or
award size, gross misconduct, reputational
damage and unreasonable failure to protect
theinterests of employees and customers.
The Remuneration Committee has similar power
in respect of the LTIP and may exercise discretion
to reclaim or withhold some, or all, of a vested
LTIP award in exceptional circumstances
(thespecified situations being the same as
forthe Annual Bonus Plan).
Discretion
The Remuneration Committee retains discretion
under the Policy to operate the incentive plans
inaccordance with their detailed rules, to amend
performance conditions of in-flight incentives
and yet to be granted LTIP awards and future
bonus awards. Annually, the Remuneration
Committee will assess whether it feels the
formulaic outcomes from the incentive plans
reflect the Company’s underlying performance
and retains the ability to alter those outcomes.
Differences between the
PolicyReportand the policy
onemployee remuneration
We use the same principles (as set out at the
start of this report) to determine pay for our
executives and everyone else who works at
Rotork. We recognise that it is appropriate for
asignificant proportion of executive directors’
remuneration to be contingent on the
performance of the Group, and that such
remuneration is at risk subject to the satisfaction
of stretching performance conditions. Executive
directors and other senior managers are invited
to participate in the LTIP under which shares
areawarded subject to performance conditions
over a three-year period. We are also widening
participation in our share-based long-term
incentive schemes within the organisation.
Executive directors and other senior managers
are also invited to participate in the annual
bonus scheme which will result in a bonus
payment being made if targets are achieved,
part of which for executive directors may be
deferred in shares. Alternative or additional
incentive plans may operate from time to time
for senior managers and/or other employees.
Employees share in the success of the Group
through a profit-based bonus plan which is
linked to the performance of their business unit,
Group performance and their own individual
performance. This is coupled with the
opportunity, for eligible employees, to receive
free shares from the Company, paid from the
Company’s profits.
Approach to recruitment remuneration
We recruit our most senior leaders from a global
talent pool and our Policy provides the flexibility
for such recruitment. Base salary levels for new
executives are set after taking into account the
experience and calibre of the individual and
theirexisting remuneration package. It may be
appropriate in certain circumstances to offer
asalary which is initially lower than the market
level but having a planned series of increases
tosuch salary over subsequent years subject to
individual performance. We will be clear as to our
intentions with a candidate if we intend to adopt
such an approach for a particular reward package.
Benefits will generally be provided in accordance
with the Policy. Where an executive is required to
relocate in order to take up his/her role, we may
offer relocation expenses and assistance and/or
ongoing expatriate benefits (including tax
equalisation), the nature of which would be
determined by the individual circumstances.
The structure and level of the ongoing variable
pay element will be in accordance with the
Policy. Different performance measures may
beset initially for the annual bonus, taking into
account the responsibilities of the individual,
andthe point in the financial year that the
executive joined.
In the case of an external hire, it may be
necessary to buy out certain elements of
remuneration from an executive’s previous
employer which would be forfeited on leaving
that employer. Where we do this, it will always
be subject to the principal consideration that
making such a buy-out is in the best interests
ofthe Group. Any such payment would be
structured to take into account the form (cash or
shares), timing and expected value (i.e. likelihood
of meeting any existing performance criteria) of
the remuneration being forfeited. Replacement
share awards, if used, may be granted using
Rotork’s existing share plans to the extent
possible, although awards may also be granted
outside of these schemes if necessary and as
permitted under the UK Listing Rules.
Directors’ Remuneration Policy continued
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Remuneration Policy report continued
Service contracts and policy on
payments for loss of office
Under the executive directors’ service contracts,
up to 12 months’ notice of termination of
employment is required by either party. Should
notice be served, the executive directors can
continue to receive salary, benefits and pension
for the duration of their notice period, during
which time the Company may require the
individual to continue to fulfil their current duties
or may assign a period of garden leave. The
Company applies a general principle of mitigation
in relation to termination payments and the
service contracts expressly include the use of
monthly phased payments following termination
in lieu of notice which can be reduced to the
extent that alternative remunerated employment
is found.
The service contracts also enable the Company
toelect to make a payment in lieu of notice
equivalent in value to 12 months’ base salary only.
In the event of cessation of employment, the
executive directors may still be eligible for a
bonus at the discretion of the Remuneration
Committee, on a pro-rata basis for the period of
time served from the start of the financial year
to the date of termination and not for any period
in lieu of notice. Different performance measures
(to the other executive directors) may be set for
the bonus for the period up until departure, as
appropriate, to reflect changes in responsibility.
Any unvested shares held under the deferred
Annual Bonus Plan will ordinarily vest on the
normal vesting date, save where the departure
isas a result of summary dismissal, in which
casethe awards will lapse on cessation of
employment. The Remuneration Committee may
also determine that the shares shall vest on an
earlier date (including the date of cessation) if
the Remuneration Committee, in its discretion,
considers that the circumstances of the cessation
merit early vesting of the awards.
The rules of the LTIP set out what happens
toawards if a participant leaves employment
before the end of the vesting period. Generally,
any unvested LTIP awards will lapse when an
executive director leaves employment except in
certain circumstances. If the executive director
ceases to be employed as a result of death,
injury, retirement, transfer of employment or any
other analogous reason, they may be treated as
a ‘good leaver’ under the plan rules. The shares
for a good leaver will vest subject to an assessment
of performance, with a pro-rata reduction to
reflect the proportion of the vesting period served.
Awards for a good leaver may then vest on the
normal vesting date, unless the Remuneration
Committee determines that they should vest
early (for example, following the death of
theparticipant). In determining whether an
executive director should be treated as a good
leaver and the extent to which their award
mayvest (up to the pro-rated amount), the
Remuneration Committee will take into account
the circumstances of an individual’s departure.
Outplacement services and reimbursement of
legal costs may be provided where appropriate.
Any statutory entitlements or sums to settle
orcompromise claims in connection with
atermination would be paid as necessary.
Outstanding share awards would ordinarily vest
early on a change of control of the Company.
Inthe case of unvested awards under the LTIP,
performance would be measured to the date
ofcontrol normally with a pro-rata reduction
toreflect the proportion of the vesting or
performance period served.
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This part of the Directors’ Remuneration Report
has been prepared in accordance with Part 3 of
The Large and Medium-sized Companies and
Groups (Accounts and Reports) Regulations (as
amended) and Rule 6.6.6 of the UK Listing Rules
and explains how Rotork’s current Remuneration
Policy has been implemented during the year.
The Annual Statement and Annual Report on
Remuneration will be put to a single advisory
vote at the AGM on 2 May 2025.
Role of the Remuneration Committee
The principal role of the Remuneration Committee
is to establish the policy for remuneration of the
executive directors, the Rotork Management
Board (RMB) and the Board Chair, which is aligned
with the long-term success of the Company and
its shareholders. Italso oversees the principles
and structure of remuneration arrangements for
all employees across the Group, and seeks to
ensure that there is consistency across regions,
business lines and organisational levels. Where
possible, similar structures are used across the
Group, to ensure transparency. At all levels of
the organisation, in line with our remuneration
principles, we ensure that remuneration is
competitive and fair; at the executive level, this
means offering remuneration that is sufficiently
attractive to appropriately incentivise and retain
the leadership team to successfully run a complex
global business.
UK Corporate Governance Code -
Provision 40 disclosures
When developing the proposed Remuneration
Policy and considering its implementation,
theCommittee was mindful of the 2018 UK
Corporate Governance Code and considers
thatthe executive remuneration framework
appropriately addresses the following factors:
• Clarity – the Committee is committed
toproviding open and transparent
disclosuresregarding our executive
remuneration arrangements.
• Simplicity – remuneration arrangements for
our executives and our wider workforce are
simple in nature and well understood by both
participants and shareholders.
• Risk – the Committee considers that the
incentive arrangements do not encourage
inappropriate risk taking. Malus and clawback
provisions apply to annual bonus, LTIP and
DABP awards (and are accepted in writing by
those to whom the incentives are awarded).
The Committee has overarching discretion to
adjust formulaic outcomes to ensure that they
are appropriate.
• Predictability and proportionality – our Policy
illustrates opportunity levels for executive
directors under various scenarios for each
component of pay.
• Alignment to culture – any financial and
strategic targets set by the Committee are
designed to drive the right behaviours across
the business. The LTIP encourages our executives
to focus on making the right decisions for the
execution of our strategy and the creation
oflong-term shareholder value.
Priorities and activities of the
Remuneration Committee during 2024
Reviewed the application of our Remuneration
Policy to ensure it delivers a package that
is proportionate to the opportunity for
shareholders and aligned with their interests
• Set pay principles.
• Reviewed all elements of the Remuneration
Policy in order to ensure that it remains
globally relevant and fit for purpose and that
it aligns with (and supports) Rotork’s
culture
and values, and fits with our pay principles.
• Considered corporate governance
developments, including the incoming 2024
UK Corporate Governance Code, guidance
from institutional investors and external
remuneration trends, to ensure our
remuneration structures reflect prevailing
good practice.
• Developed the approach to the remuneration
structure for 2025.
• Reviewed the approach to the measurement
and assurance process for the environmental
measure for the 2024 LTIP awards, following
the introduction of the environmental
measure in 2023.
• Reviewed and agreed the performance
conditions and measures for the 2025
LTIPawards.
Set pay at a competitive level against the
external market and ensured remuneration
remained affordable and fair in the context
ofpay for all Rotork employees
• Reviewed the pay arrangements for
employees across the Group and considered
how these related to those for our senior leaders.
• Ensured that decisions on pay were in line
with Rotork’s Fair Pay Framework, which
guides Rotork’s reward policies, procedures,
systems and decision making globally in
support of the commitment to deliver fair
andcompetitive remuneration in line with
theremuneration principles.
• Set basic salary for executive directors and
members of the RMB for 2024.
• Reviewed the fee payable to the Chair.
Determined pay outcomes that are
performance driven
• Determined the bonus performance
outcomeagainst 2023 targets and
approvedbonus payments.
• Determined the LTIP vesting outcome against
2021 performance targets and approved vesting.
• Reviewed incentive plan outcomes and
evaluated whether it was appropriate for
discretion to be applied.
Ensured future pay is motivating, transparent
and aligned to shareholders’ interests
• Reviewed the terms of both bonus and LTIP
plans to ensure that they remain fit for
purpose and in line with developing practice
from a governance perspective.
• Selected the measures and set the performance
ranges for executive directors and other
members of senior management’s bonus
scheme for 2024. As mentioned in the 2023
report, for the 2024 bonus scheme, the
previous lost time injury rate (LTIR) measure,
which comprises half of the ESG measure
(10%) of the 2024 bonus opportunity, was
replaced with the best practice total recordable
incident rate (TRIR) health and safety measure,
for our executive directors and other members
of Rotork’s senior management’s bonus scheme.
• Approved the executive directors’ personal
objectives for 2024.
• Set LTIP performance targets and award levels
for executive directors and other members of
senior management for the 2024 LTIP.
Maintained transparency and clarity in
everything we do
Approved the Directors’ Remuneration Report
2023 and recommended that shareholders vote
in favour of the report at the Company’s 2024
Annual General Meeting.
Retirement of Jonathan Davis and appointment
of Ben Peacock
As disclosed in the 2023 report, during 2023
theCommittee reviewed and determined the
remuneration arrangements relating to the
retirement of Jonathan Davis as executive director
and Group Finance Director and the appointment
of Ben Peacock as executive director and Chief
Financial Officer. These arrangements were
implemented during 2024 and details of their
respective remuneration arrangements are
summarised below and detailed within the
relevant sections of this report.
Annual Report on Remuneration
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual Report on Remuneration continued
Appointment of Ben Peacock as executive
director and Chief Financial Officer
Ben Peacock was appointed as an executive director
and Chief Financial Officer on 11 March 2024
(the Appointment Date). Effective from his
Appointment Date, Ben Peacock received an
annual base salary of £430,000, which was
pro-rated for time served at the Company during
the year. The first salary review was not intended
to be undertaken before 1 April 2025. Details
relating to Ben’s first salary review, effective
from 1 April 2025, are set out on page134.
The benefits that Ben Peacock has received
sincehis Appointment Date remain in line with
Rotork’s current Remuneration Policy. These
comprise a pro-rated annual non-pensionable
car allowance of £13,584 (which can only be
used towards acquiring an electric, hybrid or
low-emission vehicle), alongside personal
accident and private medical insurance and life
assurance. Ben Peacock’s pension allowance,
which he has received on a pro-rata basis since
his Appointment Date, was fixed at the rate
available to the majority of the workforce in
theUK, being 10.24% of base salary.
Ben Peacock was eligible to participate in the
discretionary annual bonus scheme with his
maximum opportunity being 125% of base
salary for 2024, pro-rated for time served during
the year. The outcome of the 2024 bonus
opportunity is detailed on pages 147 to 148. Ben
Peacock was also eligible to participate in the
LTIP, with his participation level being up to
175% of base salary. The details of the LTIPs
granted to Ben Peacock during the year, and the
performance conditions attached to such LTIPs
are set out below on page 150. In line with the
approved Remuneration Policy, Ben Peacock is
also entitled to participate (as and when he
becomes eligible to do so) in the all-employee
share plans operated by the Company, which
currently include the UK Share Incentive Plan
(SIP) (partnership and free shares) and the UK
Sharesave schemes. During the year,
BenPeacock elected to participate in the
Company’s UK Sharesave scheme, and details of
the Sharesave options granted to Ben on
4October 2024 are disclosed below on page
151. In line with the SIP share plan rules,
BenPeacock was not eligible to receive an award
of free shares under the SIP share plan during
2024, as he had not met the length ofservice
requirement.
As previously disclosed, certain elements of
BenPeacock’s remuneration from his previous
employer were bought out and these arrangements
were all in line with the approved Remuneration
Policy. A cash payment of £140,568 was made
to Ben in March 2024, the amount being the
equivalent to the amount of cash bonus that
Benwas forecast to lose upon leaving his former
employer. Within last year’s Annual Report on
Remuneration, the Company also confirmed that
it intended to grant Ben Peacock a conditional
share award over ordinary shares in Rotork plc
tothe value of £230,000, to compensate for
awards that Ben forfeited as a result of leaving
his former employer. In determining the structure
of the awards granted to Ben, the form, timing
and expected value of the forfeited awards were
considered. On 11 April 2024, Ben Peacock was
granted conditional share awards over an aggregate
of 70,640 ordinary shares in Rotork plc. The
number of conditional share awards granted was
calculated using the average of the market close
price for Rotork plc ordinary shares for the five
days prior to grant, being £3.2624 per ordinary
share. The awards were made subject to malus
and clawback provisions, which were accepted
in writing at grant, and Ben’s continued
employment (subject to market-standard good
leaver provisions). The conditional share awards
granted to Ben vest in three tranches, the initial
tranche having vested on 11April 2024, with
8,811 ordinary shares being transferred to
Benon the same date. A further 31,897
conditional shares are expected to vest on
11April 2025 and the final tranche of 29,932
conditional shares are expected to vest on
18April 2026.
The Company has also made tax support for up
to three tax years available to Ben Peacock, to
assist with advice and support in completing tax
returns in both the UK and US. This support
remains subject to an annual cap of £10,000 to
be paid directly to the provider. During 2024 no
such support was claimed for. Contributions
towards relocation costs (subject to caps) from
the US to a location within 25 miles of Bath (UK)
have also been provided to Ben Peacock during
the year. During 2024 such relocation costs have
included flights, temporary accommodation,
useof a relocation company, shipping costs and
payment of incidentals against receipts. The
amounts received by Ben are disclosed as
required on page 145.
Retirement of Jonathan Davis
asexecutive director and Group
Finance Director
Jonathan Davis stepped down from his role as
Group Finance Director on 11 March 2024, when
Ben Peacock joined the Board as Chief Financial
Officer. Jonathan remained appointed as an
executive director until the conclusion of the
Company’s 2024 AGM, held on 30 April 2024,
stepping down from the Board on this date.
Jonathan continued as an employee of Rotork
until 10 September 2024 (being Jonathan’s
Retirement Date). Jonathan’s remuneration
arrangements were all in line with the approved
Remuneration Policy. The amounts received by
Jonathan until 30April 2024 are set out below in
the single figure table and related notes on page
145. Details of the payments Jonathan received
as an employee of Rotork during the period
1May 2024 to his Retirement Date are detailed
on page 146.
Jonathan received a base salary increase of 4.2%
with effect from 1 April 2024, which was in line
with the UK average salary increase of the UK
workforce (received from 1 January 2024), taking
Jonathan’s base salary to £406,480. This was
pro-rated for time served during the year until
his Retirement Date. The Committee confirmed
in last year’s report that Jonathan would be
eligible to be considered for the 2024 annual
bonus award. Jonathan received a pro-rated
annual bonus in relation to the time Jonathan
was appointed as an executive director during
2024 of £145k. £99k of which was paid in cash
and £46k of which was deferred into shares for
three years. Such figures are included within the
single figure table below.
In accordance with the respective share plans,
Jonathan was granted good leaver status with
respect to his existing DABP awards and the
2022 and 2023 LTIP awards that are due to vest
after his Retirement Date. Jonathan’s existing
LTIP awards were pro-rated for the period until
his Retirement Date and remain subject to the
achievement of the required performance
conditions, a two-year holding period and the
relevant rules. Jonathan was not granted any
LTIP awards in 2024. His outstanding awards
under the DABP and LTIP are shown on page
152. Any vesting of Jonathan’s share awards,
together with such dividend entitlements to
besettled in the form of additional shares,
continue to remain subject to the post-departure
shareholding requirements for executive
directors (up to 200% of salary for two years
from Jonathan’s Retirement Date).
Jonathan’s ability to participate in the Company’s
SIP fell away at his Retirement Date. Any shares
held within the SIP trust on Jonathan’s behalf
were removed from the trust following his
Retirement Date.
No payments for loss of office of the type specified
in Section 430(2B) of the Companies Act 2006
have been made to Jonathan Davis. The relevant
remuneration information will continue to be
included in Rotork’s Directors’ Remuneration
Report going forwards, asrequired.
Rotork Annual Report 2024 rotork.com144
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual Report on Remuneration continued
Single figure of remuneration for 2024 and 2023 (£000) (audited)
The tables below set out the single figure remuneration for the directors of Rotork for 2024 and 2023.
Executive directors (£000) (audited)
Salary Benefits
(i)
Annual bonus
(ii)
LTIP
(iii)
SIP
(iv)
Other items in the
nature of
remuneration
(v)
Pension and
related benefits
(vi)
Total remuneration Total fixed pay Total variable pay
Name 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Current executive directors:
Kiet Huynh 666 600 23 22 879 877 602 20 4 4 — — 68 61 2,242 1,584 757 683 1,485 901
Ben Peacock
1
347 — 13 — 386 — 230 — — — 141 — 33 — 1,150 — 393 — 757 —
Former executive director:
Jonathan Davis
2
131 385 12 15 145 467 306 77 4 4 — — 13 42 612 990 157 442 455 548
1 Ben Peacock was appointed Chief Financial Officer on 11 March 2024.
2 Jonathan Davis stepped down as a director on 30 April 2024. Jonathan’s fixed salary and benefits (including those related to pension) reflect the period that Jonathan was in role as an executive director.
(i) The benefit value comprises car allowance and/or benefit in kind value of company car, where applicable, private medical insurance and any cash amounts received pursuant to the sale of unused annual leave allowance in line with the Company’s Annual
Leave Trading Scheme Policy, which is available to all employees.
(ii) Of the maximum bonus opportunity, the following applied: for Kiet Huynh, £600k was paid in cash with £279k deferred into shares for three years; for Ben Peacock, £261k was paid in cash, with £125k deferred into shares for three years; and for Jonathan
Davis, £99k was paid in cash with £46k deferred into shares for three years.
(iii) The 2024 figure relates to the 55.8% vesting of the 2022 LTIP award based on performance to 31 December 2024. These awards are not eligible to vest until 24 March 2025 and, as such, an indicative share price of 321.0p (being the average closing share
price over the three-month period to 31 December 2024) has been used for the purposes of valuing these awards. This value will be restated in next year’s report. The 2023 figure relates to the 2021 LTIP award, which vested at 13.8% on 25 March 2024.
Inlast year’s report the value of these awards was calculated using the average closing share price over the three-month period to 31 December 2023, being 309.5p, and, this year, the figures have been updated using the closing price on the date of
vesting, being 326.40p. Dividend equivalents were applied to the vested 2021 LTIP awards, calculated using the same share price, on a reinvestment basis. On 11 April 2024, conditional share awards over an aggregate of 70,640 ordinary shares in Rotork plc
were granted to Ben Peacock. The conditional share awards vest in three tranches based on continued service only and so they are included in the LTIP column. The value ascribed to such awards is the average five-day closing share price of 326.24p.
(iv) Face value of SIP free share awards made during the year.
(v) Comprises a cash payment equivalent to the amount Ben Peacock was forecast to lose resultant to leaving his former employer.
(vi) Comprises payments in lieu of pension contributions.
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Annual Report on Remuneration continued
Single figure of remuneration for 2024 and 2023 (£000) (audited) continued
Chair and non-executive directors (£000)
Base fees
Additional fees/
remuneration Total remuneration
Name 2024 2023 2024 2023 2024 2023
Current Chair and non-executive directors:
Dorothy Thompson
(i)
268 194 — — 268 194
Svein Richard Brandtzæg
(ii)
7 — — — 7 —
Andrew Heath
(iii)
49 — 7 — 56 —
Karin Meurk-Harvey 64 61 — — 64 61
Vanessa Simms
(iv)
34 — — — 34 —
Janice Stipp 64 61 13 11 77 72
Former non-executive directors:
Ann Christin Andersen
(v)
21 61 3 7 24 68
Tim Cobbold
(vi)
64 61 33 18 97 79
Peter Dilnot
(vii)
— 61 — 11 — 72
Martin Lamb
(viii)
— 84 — — — 84
(i) Dorothy Thompson was appointed as Chair with effect from 1 May 2023. The2023 fees shown are pro-rated for time
servedas Chair with Dorothy Thompson’s fee also including her pro-rated non-executive base fee from 1January 2023
to30April 2023.
(ii) Svein Richard Brandtzæg was appointed to the Board on 20 November 2024.
(iii) Andrew Heath was appointed to the Board on 1 April 2024.
(iv) Vanessa Simms was appointed to the Board on 21 June 2024.
(v) Ann Christin Andersen stepped down from the Board on 30 April 2024.
(vi) Tim Cobbold stepped down from the Board on 31 December 2024.
(vii) Peter Dilnot stepped down from the Board on 31 December 2023.
(viii) Martin Lamb stepped down from the Board on 30 April 2023.
The additional fees referred to above are the supplementary fees paid in cash to the Chairs of
theAudit, Remuneration and Safety and Sustainability Committees, the Senior Independent
Non-executive Director and the designated Non-executive Director for Workforce Engagement.
Alldirectors have confirmed that, save as disclosed in the single figure of remuneration table above,
they have not received any other items in the nature of remuneration.
Total pension entitlements (audited)
No director participates in, or has a deferred benefit under, a defined benefit pension scheme.
Inaccordance with the current Remuneration Policy, the executive directors receive a cash allowance
in lieu of pension at the level of the majority of the workforce, being 10.24% from 1 January 2024.
Payments to former directors and for loss of office (audited)
Jonathan Davis stepped down as an executive director of Rotork plc following the conclusion of the
Company’s 2024 AGM on 30 April 2024. In order to ensure an orderly handover, Jonathan remained
employed by Rotork until his Retirement Date on 10 September 2024. During the 4 month and 10
day period as an employee, Jonathan continued to receive a base salary, benefits (including pension),
and remained eligible to receive an annual bonus for 2024. The amounts Jonathan received during
the period were as follows: base salary £146,437, benefits (including pension) of £20,298 and the
cash element of the annual bonus (pro-rated for time) of £109,111. Jonathan remained eligible to
participate in the Company’s SIP, including the ability to purchase monthly partnership shares under
the SIP to a maximum of £150 per month. However, all shares held by Jonathan pursuant to the
Company’s SIP were removed from the SIP trust shortly after Jonathan’s Retirement Date. Jonathan
Davis continues to hold LTIP awards granted in 2022 and 2023, which are due to vest on 24 March 2025
and 24 March 2026 respectively. The extent to which Jonathan’s 2022 LTIP award lapsed due to time
pro-rating and will vest or lapse due to satisfaction of the performance conditions attached to the
awards are set out below on page 149. Jonathan’s 2023 LTIP awards remain subject to performance
conditions and have been pro-rated for time served. There are no payments for loss of office for
Jonathan Davis.
Kevin Hostetler stepped down as an executive director during 2022. The 2021 LTIP award vested on
24 March 2024, with details set out in last year’s report. 381,271 LTIP awards were originally granted
on 24 March 2022, with 372,922 of such awards lapsing due to pro-rating for time served up to his
date of leaving Rotork, being 17 April 2022. The 8,349 awards that remain will vest at 55.8% (4,659
awards) on 24March 2025. Additional shares, representing accrued dividends in the period, will be
added upon vesting. Kevin will be required to retain the vested number of shares (net of tax and
social security) for a further period of two years.
Other than as set out above, no other remuneration payment or any payment for loss of office of
thetype specified in Section 430(2B) of the Companies Act 2006 has been made to Kevin Hostetler
or Jonathan Davis. The relevant remuneration information will continue to be included in Rotork’s
Directors’ Remuneration Report in subsequent years, as appropriate. No other payments were made
to former directors or for loss of office during the year.
Rotork Annual Report 2024 rotork.com146
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual Report on Remuneration continued
Annual bonus for 2024
Bonuses in 2024 were based on 60% on annual profit, 15% on cash generation, 10% on ESG
measures (including total recordable incident rate (TRIR)), and 15% on personal strategic objectives.
Details of performance achieved against the targets set are shown below.
Performance
required to trigger
bonus payment
Performance
required at
maximum
% payable
at maximum
performance
Performance
outcome
% bonus
awarded
Annual profit target £150m £184m 60% £178.4m 51.4%
Cash generation 85% 110% 15% 119% 15.0%
ESG measures:
environmental innovation,
culture & engagement
See below See below 5% See below 3.5%
Total recordable incident rate 0.26 0.23 5% 0.22 5%
Total 85% 75%
ESG bonus measures comprise: environmental innovation in product and customer focus to reduce
environmental impact (2%), employee engagement (2%) and culture (1%). The product and customer
innovation performance was sufficient to deliver the full 2%. The employee engagement score of
7.1met the threshold target rate of 7.1, delivering 1% of bonus. The culture score of 42% diversity
incandidates filling available roles at Rotork Management Board level and the tier below exceeded
the threshold target range of 40%, delivering 0.5% of bonus.
Personal strategic objectives, which accounted for 15% of the bonus opportunity, were set at the
start of the year for Kiet Huynh and Jonathan Davis and upon joining the Company for Ben Peacock.
The Remuneration Committee set specific and measurable targets covering a range of the Company’s
strategic priorities and assigned each an individual weighting. Performance against each of the
defined targets was assessed by the Remuneration Committee with input from the Chair and other
non-executive directors.
The objectives for all of the executive directors and the performance against them are summarised
inthe table below.
Kiet Huynh Performance summary
% payable
at maximum
% bonus
awarded
Business strategy andvision Various initiatives were undertaken to ensure
that Rotork’s Growth+ strategy continued to
deliver results and evolve (both organically
and inorganically), whilst also ensuring
alignment of the business strategy to the
macro environment, global megatrends and
key stakeholders. The Board were kept fully
updated on all aspects of such continual
strategic refinements and evaluations via
regular presentations.
3.0% 3.0%
Growth+ strategy implementation, including: 12.0% 10.0%
Customer value Delivered improved customer satisfaction
through a range of commercial and
operational improvements, evidenced by a
range of metrics and initiatives.
Innovative products
andservices
Key new products that complement the end
market growth requirements were successfully
launched to market.
People initiatives and
cultureevolution
A range of people initiatives and steps
forming part of Rotork’s cultural evolution
were achieved, including work to define
Rotork’s core cultural DNA by identifying the
key behaviours which will drive success.
Deliver further efficiencies via
the use of digital technology
Continued progress on the implementation
plan to deliver the new ERP at various Rotork
sites, thereby increasing efficiencies and
decision making. Continued enhancement
ofthe ERP subsidiary blueprint in line with
implementation plan.
Total 15.0% 13.0%
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Annual Report on Remuneration continued
Annual bonus for 2024 continued
Ben Peacock Performance summary
% payable
at maximum
% bonus
awarded
Finance strategy to
supportGrowth+
A detailed strategic review of the finance
function was undertaken to identify
opportunities for improving automation and
controls in support of the delivery of Growth+.
3.0% 3.0%
Implement finance and technology initiatives, including: 12.0% 11.0%
Data Strategy Various initiatives were completed as part of
the development of a detailed data strategy
inorder to ensure that data was leveraged to
support the Growth+ strategy. This included
enhancements to the core data architecture.
Control environment Continual enhancements were made to
Rotork’s existing control environment, to
ensure that the Business Control Framework
and related governance remained fully up to
date, and remained embedded within the
organisation globally.
Financial forecasting
andreporting
A review was undertaken, and outcomes
implemented to improve the forecasting
andbudgeting process and associated
management reporting.
Deliver further efficiencies via
the use of digital technology
Continued progress on the implementation
plan to deliver the new ERP at various Rotork
sites, thereby increasing efficiencies and
decision making, whilst ensuring that controls
are effectively implemented. Continued
enhancement of the ERP subsidiary blueprint
in line with implementation plan. The Board
have been kept fully updated on the delivery
programme and budget.
Total 15.0% 14.0%
Jonathan Davis Performance summary
% payable
at maximum
% bonus
awarded
Handover to incoming CFO A comprehensive handover was completed
with Ben Peacock to support a successful CFO
transition process, which covered all aspects
of the finance and investor relations functions
(both strategic and operational) and
introductions to key external advisers.
8.0% 8.0%
Implementation of certain discrete financial and strategic projects: 7.0% 5.0%
Continued derisking of the UK
defined benefit pension scheme
Following Board approval, the UK defined
benefit pension scheme was derisked via
abulk annuity purchase
Inorganic growth proforma Proforma templates to support the
inorganicgrowth were developed to
supportthe continued implementation of
theGrowth+ strategy and Rotork’s capital
allocation framework.
Control environment Oversight of the Business Control Framework
reviews that were scheduled, alongside
afeedback gathering exercise to ensure
continued evolution of the framework based
on lessons learned.
Total 15.0% 13.0%
Rotork Annual Report 2024 rotork.com148
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual Report on Remuneration continued
Annual bonus for 2024 continued
Having reviewed the performance of the business against these targets, including the personal
objectives, set either at the start of the year or upon joining the Company during the year (in Ben
Peacock’s case) the Committee decided that the level of payout, expressed in percentage of maximum
opportunity, should be 131.85% for Kiet Huynh, 111.13% (on a pro-rata basis) for Ben Peacock and
109.88% (on a pro-rata basis) for Jonathan Davis with no need for discretion to be applied. Asa
result, the 2024 bonus opportunity paid out for Kiet Huynh at 90%, for Ben Peacock at 75% and for
Jonathan Davis at 75% of 2024 salary (pro-rated for time served during the year for Ben Peacock and
Jonathan Davis), with 41.85% of salary for Kiet Huynh, 36.13% of salary for Ben Peacock and 34.88%
of salary (as at his Retirement Date) for Jonathan Davis (pro-rated for time served in Ben Peacock’s
and Jonathan Davis’ case) being deferred in shares under the Deferred Annual Bonus Plan respectively
with the details shown below.
Deferred Annual Bonus Plan (DABP) awards (audited)
Any bonus earned above a threshold of 60% of the maximum is deferred into share awards under
the Deferred Annual Bonus Plan, vesting on the third anniversary of grant. No further performance
conditions apply; DABP awards are subject to continued employment only and dividend equivalents
may be paid on the deferred shares on vesting. Of the 2024 bonus award, 41.85% of salary for
KietHuynh, 36.13% of salary for Ben Peacock (pro-rated for time served) and 34.88% of salary
(asat his Retirement Date) for Jonathan Davis (pro-rated for time served) will be deferred into shares
in Rotork plc for three years under the Deferred Annual Bonus Plan and are not subject to any
additional performance conditions. Of such amounts, Kiet Huynh will defer £279k, Ben Peacock
willdefer £125k and Jonathan Davis will defer £97k (of the total 2024 bonus amount awarded
forthe period during which Jonathan Davis was employed during the year).
LTIP awards vesting based on performance to 31 December 2024 (audited)
The LTIP rewards performance against the principal measures of Rotork’s long-term financial success.
Performance is measured over a three-year period using a combination of adjusted EPS, relative TSR
compared to a peer group and economic profit growth (ROIC).
The economic profit metric (ROIC) measures the post-tax profitability of the Group after a charge
hasbeen taken for the combined capital used (both debt and equity) within the business. The charge
is calculated using the weighted average cost of capital based on average capital employed in the
period. In determining capital employed, cumulative amortised goodwill and long-term pensions
liabilities are adjusted for. In determining the economic profit, adjustments are made for restructuring
costs and also, when material, for M&A activity and exchange rates movements. The target is set by
using the latest long-term financial plan approved by the Board. It targets a rate of growth of the
average economic profit over the three years of the plan over the three years preceding the plan period.
Themeasure captures the extent to which the business has earned a return above the cost of capital.
It has been shown in many other capital-intense businesses to drive improved decision making,
particularly when evaluating large-scale investment decisions, and was introduced at Rotork in 2017.
The LTIP awards granted on 24 March 2022 had a three-year performance period, which ran
from1January 2022 to 31 December 2024 and such awards were subject to the following
performance targets:
Measure Weighting Performance period Threshold target
Stretch target
(100% vesting) Performance outcome
Adjusted earnings
per share growth
(i)
33% 01/01/22
– 31/12/24
9% (25% vesting) 35% or more Adjusted EPS grew
by 41.2% over the
period, exceeding
the stretch target
of 35% for a
maximum payout.
This resulted in
100% vesting of
this tranche
TSR relative to the
constituents of the
FTSE 350 Industrial
Goods and
ServicesSector
33% 01/01/22
– 31/12/24
Median ranking
(25%vesting)
Upper quartile
ranking
andabove
Rotork’s relative
TSR ranking within
its comparator
group was
insufficient for this
tranche to vest.
Economic profit
growth (ROIC)
33% 01/01/22
– 31/12/24
Three times
the2021
economic profit
(0% vesting)
81% growth
onthreetimes
the 2021
economic profit
Economic profit
increased over the
measurement
period, exceeding
the threshold level
but not reaching
the stretch target.
This resulted in
67.4% vesting
ofthis tranche.
(i) For performance between threshold and stretch, awards vest on a pro-rata basis.
During the three-year performance period, adjusted EPS grew by 41.2%. Relative TSR performance
inthe period was insufficient for vesting. Economic profit growth (growth in profit ahead of the
return demanded by the weighted average cost of capital) increased over the performance period
by48.2%. The Remuneration Committee, therefore, approved the vesting of 55.8% of the shares
awarded under the 2022 cycle to executive directors as set out below.
2022 LTIP award
Grant date
Number of shares
under award
Number of
shares vesting
Number of shares
lapsing
Vesting/
lapse date
Kiet Huynh 24 March 2022 335,939 187,454 148,485 24 March 2025
Jonathan Davis
(i)
24 March 2022 192,246 95,412 96,834 24 March 2025
(i) Of the total number of shares lapsing, 21,256 lapsed due totime served during the performance period up to Jonathan’s
Retirement Date and 75,578 lapsed due to non-satisfaction of performance conditions attached to the award.
rotork.com Rotork Annual Report 2024149
Strategic report Corporate governance Finan ial statements
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Share awards granted in 2024 (audited)
LTIP awards (audited)
The following LTIP awards were made to the executive directors on 21 March 2024. These grants
were made at the levels permitted under the current Remuneration Policy.
Share
awards made
during 2024
(i)
Basis on which
awards made
Face value of
award (£)
(ii)
Percentage
vesting
for minimum
performance
(iii)
End of
performance
period Vesting date
Kiet Huynh 377,4 6 4 200% of
salary
£1,232,797 15.0% 31 December
2026
21 March
2027
Ben Peacock 230,404 175% of
salary
£752,500 15.0% 31 December
2026
21 March
2027
(i) Awards to both Kiet Huynh and Ben Peacock were made as nil-cost options.
(ii) The share price used to determine the number of shares under the awards was 326.6p, being the average share price
overthe five market days immediately preceding the date of the award.
(iii) Vesting if the minimum performance on adjusted EPS, TSR, capital return (economic profit) and ESG conditions are
achieved. Theperformance measures are:
a 30% based on adjusted earnings per share – adjusted EPS growth must be at least 9% for 25% vesting, increasing on
astraight-line basis to full vesting for EPS growth of 35% and above;
b 30% based on relative total shareholder return – measured relative to the constituents of the FTSE 350 Industrial Goods
and Services Sector, with 25% vesting for median performance, increasing on a straight-line basis to full vesting for
upper quartile performance and above;
c 30% based on economic profit – measures the profitability of the Group after a charge for the overall level of capital
(based on the total capital used and calculated using the weighted average cost of capital) is subtracted. It is measured
on a cumulative basis, over the three-year performance period. No payout will be received for a negative economic
profit. The threshold target (at which 0% vests) requires average economic profit over the three-year period to exceed
that generated in 2023 and the maximum target has been set such that it will require double-digit growth in post-tax
profits alongside improved balance sheet efficiencies. Details of the exact targets are considered by the Remuneration
Committee to be commercially sensitive. However, full details of the targets and how economic profit has been
calculated will be disclosed on vesting; and
d 10% ESG measures – 10% based on an absolute reduction in scope 1 and 2 CO
2
emissions with targets at least as
demanding as the path required to meet the published 2030 SBTi targets.
Conditional share awards (audited)
The following conditional share awards were granted to Ben Peacock on 11 April 2024. These grants
were made at levels permitted within the current Remuneration Policy. As disclosed in the 2023
Annual Report on Remuneration, the conditional share awards were granted to facilitate the
recruitment of Ben Peacock and compensate Ben for share awards forfeited as a result of leaving
hisprevious employer. The conditional share awards were granted subject to malus and clawback
provisions, which were accepted by Ben in writing at grant, and continued employment (subject
tomarket-standard good leaver provisions). The conditional share awards are not subject to any
performance conditions (replicating those forfeited) but a two-year post-vesting holding period applies.
Share awards made
during 2024
(i)
Face value
of award (£) Vesting date
Ben Peacock 8,811 £28,745 11 April 2024
31,897 £104,061 11 April 2025
29,932 £97,650 18 April 2026
(i) The share price used to determine the number of shares under the awards was 326.24p, being the average share price over
the five market days immediately preceding the date of the award. The first tranche vested on 11 April 2024, and the ordinary
shares were immediately transferred to Ben Peacock.
SIP share awards (audited)
In common with all eligible employees, UK-based executive directors receive an entitlement to
ordinary shares under the SIP. Under the SIP, an aggregate total of up to 4% of profits are distributed
to employees each year in the form of ordinary shares. The distribution is calculated by reference to
years of service and basic salary, capped at £3,600. Details of free share awards under the SIP made
to executive directors in 2024 are set out below.
Free share awards made during the year
Face value
of award (£)
Date of grant Number Basis on which award made
Kiet Huynh 8 April 2024 1,105 Non-performance based £3,600
Jonathan Davis
(i)
8 April 2024 1,105 Non-performance based £3,600
(i) Jonathan Davis retired as a director of the Company with effect from 30 April 2024. Jonathan remained an employee
ofRotork until 10 September 2024, after which shares were removed from the SIP Trust.
The executive directors are also eligible to elect to purchase monthly partnership shares under the
SIPup to a maximum of £150 per month.
Annual Report on Remuneration continued
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Annual Report on Remuneration continued
Summary of outstanding share awards held by executive directors (audited)
Awards held at
31 December 2023
Granted
in the year
Lapsed in
the year
Awards exercised
in the year
Awards held at
31 December 2024 Performance period
Exercise
price Date of grant Vesting date End of holding period
Kiet Huynh
LTIP
(i)
43,681 — 37,653 — 6,028 1 Jan 2021–31 Dec 2023 — 24 March 2021 24 March 2024 24 March 2026
LTIP
(i), (iii)
335,939 — — — 335,939 1 Jan 2022–31 Dec 2024 — 24 March 2022 24 March 2025 24 March 2027
LTIP
(i), (iv)
358,586 — — — 358,586 1 Jan 2023–31 Dec 2025 — 24 March 2023 24 March 2026 24 March 2028
LTIP
(i), (iv)
— 377,464 — — 377,46 4 1 Jan 2024–31 Dec 2026 — 21 March 2024 21 March 2027 21 March 2029
DABP
(ii)
— 104,067 — — 104,067 N/A — 11 March 2024 11 March 2027 11 March 2029
SIP 991 — — 991 — N/A — 9 April 2021 9 April 2024 N/A
SIP 889 — — — 889 N/A — 6 April 2022 6 April 2025 N/A
SIP 1,151 — — — 1,151 N/A — 6 April 2023 6 April 2026 N/A
SIP — 1,105 — — 1,105 N/A — 8 April 2024 8 April 2027 N/A
SAYE 9,201 — — — 9,201 N/A 195p 7 October 2022 1 June 2026 N/A
Total 750,438 482,636 37,653 991 1,194,430
(i) Nil-cost options.
(ii) Conditional share awards.
(iii) Subject equally to adjusted EPS performance (9% to 35% growth), TSR performance relative to the FTSE 350 Industrial Goods and Services Sector (median to upper quartile) and capital return (economic profit) performance over the three-year
performance period.
(iv) Subject equally to adjusted EPS performance (9% to 35% growth), TSR performance relative to the FTSE 350 Industrial Goods and Services Sector (median to upper quartile), capital return (economic profit) and, in the case of the 2023 and 2024 LTIP
awards, ESG performance over the three-year performance period.
Awards held at
31 December 2023
Granted
in the year
Lapsed in
the year
Awards exercised
inthe year
Awards held at
31 December 2024 Performance period
Exercise
price Date of grant Vesting date End of holding period
Ben Peacock
LTIP
(i), (iv)
— 230,404 — — 230,404 1 Jan 2024–31 Dec 2026 — 21 March 2024 21 March 2027 21 March 2029
Conditional
shares
(ii), (iii)
— 8,811 — 8,811 — N/A — 11 April 2024 11 April 2024 11 April 2026
Conditional
shares
(ii), (iii)
— 31,897 — — 31,897 N/A — 11 April 2024 11 April 2025 11 April 2027
Conditional
shares
(ii), (iii)
— 29,932 — — 29,932 N/A — 11 April 2024 18 April 2026 18 April 2028
SAYE — 12,394 — — 12,394 N/A 254p 4 October 2024 1 December 2029 N/A
Total — 313,438 — 8,811 304,627
(i) Nil-cost options.
(ii) Conditional share awards.
(iii) Not subject to performance conditions, but subject to continued employment condition.
(iv) Subject equally to adjusted EPS performance (9% to 35% growth), TSR performance relative to the FTSE 350 Industrial Goods and Services Sector (median to upper quartile), capital return (economic profit) and, in the case of the 2024 LTIP awards,
ESGperformance over the three-year performance period.
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Summary of outstanding share awards held by executive directors (audited) continued
Awards held at
31 December 2023
Granted
in the year
Lapsed in
the year
Awards exercised
inthe year
Awards held at
30April 2024 Performance period
Exercise
price Date of grant Vesting date End of holding period
Jonathan Davis
1
LTIP
(i)
14,219 — — — 14,219 1 Jan 2019–31 Dec 2021 — 16 May 2019 16 May 2022 16 May 2024
LTIP
(i)
169,899 — 146,453 — 23,446 1 Jan 2021–31 Dec 2023 — 24 March 2021 24 March 2024 24 March 2026
LTIP
(i), (iii)
192,246 — — — 192,246 1 Jan 2022–31 Dec 2024 — 24 March 2022 24 March 2025 24 March 2027
LTIP
(i), (iv)
211,978 — — — 211,978 1 Jan 2023–31 Dec 2025 — 24 March 2023 24 March 2026 24 March 2028
DABP
(ii)
— 54,990 — — 54,990 N/A — 11 March 2024 11 March 2027 11 March 2029
DABP
(ii)
8,544 — — — 8,544 N/A — 8 March 2021 8 March 2024 N/A
SIP 991 — — 991 — N/A — 9 April 2021 9 April 2024 N/A
SIP 1,091 — — — 1,091 N/A — 6 April 2022 6 April 2025 N/A
SIP 1,151 — — — 1,151 N/A — 6 April 2023 6 April 2026 N/A
SIP — 1,105 — — 1,105 N/A — 8 April 2024 8 April 2027 N/A
Total 600,119 56,095 146,453 991 508,770
1 Holdings are as at 30 April 2024, being the date on which Jonathan Davis stepped down from the Board.
(i) Nil-cost options.
(ii) Conditional share awards.
(iii) Subject equally to adjusted EPS performance (9% to 35% growth), TSR performance relative to the FTSE 350 Industrial Goods and Services Sector (median to upper quartile) and capital return (economic profit) performance over the three-year
performance period. The award was pro-rated for time, following Jonathan Davis’s Retirement Date.
(iv) Subject equally to adjusted EPS performance (9% to 35% growth), TSR performance relative to the FTSE 350 Industrial Goods and Services Sector (median to upper quartile), capital return (economic profit) and, in the case of the 2023 LTIP award,
ESGperformance over the three-year performance period. The award was pro-rated for time, following Jonathan Davis’s Retirement Date.
Annual Report on Remuneration continued
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Statement of directors’ shareholding and share interests (audited)
The table below shows total shareholdings of the current directors as at 31 December 2024.
Beneficially
owned shares
(i)
Unvested
DABP awards
(ii)
SIP
(iii)
% of salary
shareholding
achieved
(iv)
Unvested
LTIP awards subject to
performance targets
Current executive directors:
Kiet Huynh 39,195 104,067 3,145 47% 1,071,989
Ben Peacock
1
8,811 — — 7% 292,233
(v)
Former executive directors:
Jonathan Davis
2
545,119 54,990 3,347 463% 404,224
Current Chair and non-executive directors:
Dorothy Thompson 20,000 — — N/A —
Svein Richard Brandtzæg — — — N/A —
Andrew Heath 25,000 — — N/A —
Karin Meurk-Harvey 2,000 — — N/A —
Vanessa Simms — — — N/A —
Janice Stipp 5,000 — — N/A —
Former non-executive directors:
Ann Christin Andersen
2
2,000 — — N/A —
Tim Cobbold
2
— — — N/A —
1 Appointed 11 March 2024.
2 Jonathan Davis and Ann Christin Andersen stepped down from the Board on 30 April 2024 and Tim Cobbold stepped down from the Board on 31 December 2024. Their shareholdings are based on the shares held at the date of ceasing to be a director
ofthe Company.
(i) Includes shares held by connected persons, SIP partnership shares, SIP free shares released from the three-year trust period and vested LTIP awards which are subject to the two-year holding period. For Ben Peacock only this figure includes the conditional
share awards that vested during the year and remain subject to a two-year post-vesting holding period.
(ii) DAPB awards attract an entitlement to accrued dividends during the holding period but are only available upon release. The satisfaction of the entitlement can be in shares or cash as determined by the Remuneration Committee at the time of the
releaseconfirmation. Unvested DABP awards are included within the % of salary shareholding achieved on a net of tax and NICs basis.
(iii) SIP free share awards that remain held in the SIP Trust.
(iv) The share price used to determine the percentage of the shareholding of salary achieved is 325.9p, being the 12-month average share price as at 31 December 2024. The shareholding guideline for the executive directors is 350% of salary for the Chief
Executive Officer and 300% of salary for the Chief Financial Officer to be achieved within five years. A post-cessation holding requirement of 200% of salary was introduced under the Policy and is applicable only to share-based awards granted after the
approval of the Policy on 24 April 2020. In order to ensure adherence to the post-cessation holding requirements, executive directors will, as a condition of receiving any and each share-based award, formally accept the post-cessation requirements in
writing. The post-cessation shareholding requirement for Jonathan Davis will apply for two years from his Retirement Date and has been calculated on his salary at that date in accordance with the Policy. The percentage figure is not audited information.
The audited information relates to the disclosure of the shareholding guidelines and whether they have been met.
(v) Figure includes the second and third tranches of the conditional share awards granted to Ben Peacock during 2024 as part of his on boarding arrangements, such awards are due to vest in April 2025 and April 2026 respectively. The awards are not subject
to any corporate performance conditions, but a two-year post vesting holding period applies.
There has been no change in the directors’ interests in the ordinary share capital of the Company between 31 December 2024 and 10 March 2025.
Annual Report on Remuneration continued
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Annual Report on Remuneration continued
TSR performance graph
This graph shows the value, by 31 December 2024, of £100 invested in Rotork plc on 31 December 2014,
compared with the value of £100 invested in the FTSE 350 Industrial Goods and Services Index on
the same date. This index has been chosen as a comparator as it represents companies with similar
business operations to the Company, and is an index of which Rotork is a constituent.
£50
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
£100
£150
£200
£250
Rotork plc
FTSE 350 Industrial Goods and Services Index
Historical Chief Executive Officer remuneration table
Year Chief Executive
Chief Executive single
figure remuneration
(£000)
Annual cash bonus
as a percentage of
maximum opportunity
LTIP vesting rate
as a percentage of
maximum opportunity
2024 Kiet Huynh 2,242 87.9% 55.8%
2023 Kiet Huynh 1,584 97.5% N/A
2022
Kevin Hostetler/Kiet Huynh
(i)
1,114 46.2% 0%
2021 Kevin Hostetler 1,380 48.7% 9.4%
2020 Kevin Hostetler 2,203 69.7% 84.4%
2019 Kevin Hostetler 1,422 82.0% N/A
2018
Kevin Hostetler
(ii)
1,193 90.9% N/A
2018
Martin Lamb
(iii)
353 N/A N/A
2017
Martin Lamb
(iii)
282 N/A N/A
2017
Peter France
(iv)
681 72.0% 0%
2016 Peter France 835 45.5% 0%
2015 Peter France 696 23.4% 0%
2014 Peter France 1,092 66.0% 37.0%
(i) Kiet Huynh was appointed to the role of Chief Executive Officer on 10 January 2022. The CEO single figure remuneration
for 2022 includes both the remuneration for Kevin Hostetler from 1 to 10 January 2022 of £27,000 and for Kiet Huynh from
10 January to 31 December 2022 of £1,087,000. The annual cash bonus figure is an average of the bonus for Kiet Huynh
of46.8% and for Kevin Hostetler of 45.6%.
(ii) Kevin Hostetler was appointed to the role of Chief Executive Officer on 12 March 2018 and stood down from the Board
on10 January 2022.
(iii) Martin Lamb held the role of Executive Chairman from 28 July 2017 to 12 March 2018 and received an additional fixed
remuneration of £55,000 per month on top of his annual Chairman’s fee during this period.
(iv) Peter France resigned as Chief Executive Officer and stood down from the Board on 27 July 2017.
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Percentage change in directors’ remuneration versus employee pay
The table below shows the year-on-year percentage change in remuneration (based on salary/fee, benefits and bonus) between 2024 and 2020 of each director compared with the percentage change for
the average UK employee.
Percentage change FY24 to FY23 Percentage change FY23 to FY22 Percentage change FY22 to FY21 Percentage change FY21 to FY20
Role
Salary/fee
(i)
Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus
Current executive directors:
Kiet Huynh Chief Executive Officer 11.1 0.3 0.2 11.5 1.5 132.0 N/A N/A N/A N/A N/A N/A
Ben Peacock
1
Chief Financial Officer N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Former executive director:
Jonathan Davis
2
Executive director -65.9 -15.8 -69.2 4.6 -4.9 128.9 3.1 1.8 -6.2 1.9 N/A -10.1
Current Chair and non-executive directors:
Dorothy Thompson
3
Chair 38.7 N/A N/A 3,817 N/A N/A N/A N/A N/A N/A N/A N/A
Svein Richard Brandtzæg
4
Non-executive director N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Karin Meurk-Harvey Non-executive director 4.4 N/A N/A 4.5 N/A N/A 260 N/A N/A N/A N/A N/A
Andrew Heath
5
Non-executive director N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Vanessa Simms
6
Non-executive director N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Janice Stipp Non-executive director 6.8 N/A N/A 4.5 N/A N/A 1.9 N/A N/A 1.9 N/A N/A
Former non-executive directors:
Ann Christin Andersen
7
Non-executive director -65.7 N/A N/A 4.5 N/A N/A 3.1 N/A N/A 1.9 N/A N/A
Tim Cobbold
8
Non-executive director 21.9 N/A N/A 4.5 N/A N/A 3.1 N/A N/A 1.9 N/A N/A
All permanent employees 4.1 0.7 -3.2 8.3 14.1 116.4 5.7 13.6 49.9 4 2.6 -16.6
1 Ben Peacock joined the Board on 11 March 2024.
2 Jonathan Davis stepped down from the Board on 30 April 2024.
3 Dorothy Thompson originally joined the Board as non-executive director and Chair Designate in December 2022. The pro-rata fee increase during the FY23 was 229%; this included the Chair fee increase applied on 1 April 2023 of 5%.
4 Svein Richard Brandtzæg joined the Board on 20 November 2024.
5 Andrew Heath joined the Board on 1 April 2024.
6 Vanessa Simms joined the Board on 21 June 2024.
7 Ann Christin Andersen stepped down from the Board on 30 April 2024.
8 Tim Cobbold stepped down from the Board on 31 December 2024.
(i) Pro-rata fee increases, where applicable, were effective from 1 April 2024.
Relative importance of spend on pay
The following table shows actual expenditure of the Group and change in spend between current and prior financial periods on remuneration paid to all employees against distributions to shareholders.
2024 2023
Percentage
change
Employee remuneration (£000) 164,323 152,679 7.6%
Dividends (£000) 65,517 61,940 5.8%
Annual Report on Remuneration continued
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Annual Report on Remuneration continued
CEO pay ratio disclosure
The table below sets out Rotork’s CEO pay ratio for the 2018–2024 financial years.
Year Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2024 Option B 64:1 51:1 31:1
2023 Option B 43:1 34:1 25:1
2022 Option B 36:1 33:1 20:1
2021 Option B 43:1 38:1 28:1
2020 Option B 45:1 37:1 28:1
2019 Option B 48:1 43:1 27:1
2018 Option B 49:1 45:1 33:1
Option B has been used for the calculation of the pay ratio. Under this method, the latest gender pay
gap data has been used to identify on an indicative basis three UK employees at 25th, median and
75th percentile. This methodology has been chosen as the data is readily available and avoids the
challenge in collecting and verifying accurately the variable pay elements for all UK employees across
many subsidiaries. The figure for 2022 is lower than previous periods due to the starting salary of the
incumbent CEO who was appointed in January 2022. In line with the base salary arrangements for
the CEO (disclosed above and in previous Remuneration Reports) the CEO’s base salary level has risen
to the level of his immediate predecessor’s 2021 salary.
To provide further context, the table below shows the CEO and the employee percentile pay used to
determine the 2024 pay ratios. The main changes are due to the variable pay outturns in the last few years.
Year
CEO
£000
25th percentile
£000
Median
£000
75th percentile
£000
Total salary
(i)
666 28 36 57
Total remuneration (single figure)
(i)
2,242 35 44 73
(i) Full time equivalent.
Executive directors’ service contracts and non-executive directors’ terms
ofengagement
A summary of the operation of the executive directors’ service contracts and policy on payments
forloss of office is set out within the overview of the Remuneration Policy section on page 142.
TheChair and non-executive directors do not have service contracts; they serve under letters
ofappointment and are subject to annual re-election by shareholders at the AGM. The term of
appointment for non-executive directors and the Chair is three years and their appointments are
subject to termination on three months’ notice (up to 12 months for the Chair). In the event of
thetermination of their position, they are entitled to reimbursement of any outstanding fees and
expenses due. The dates of appointment and date of service contract (in the case of executive
directors) or date of letter of appointment (in the case of non-executive directors) for those directors
seeking election or re-election at the 2025 AGM are set out below. The service contracts and letters
of appointment may be viewed at the Company’s registered office.
Executive directors’ service contracts
Name Date of appointment to Board Date of service contract Notice period (rolling)
Kiet Huynh 10 January 2022 8 January 2022 12 months by either party
Ben Peacock 11 March 2024 11 September 2023 12 months by either party
Non-executive directors’ terms of engagement
Name Date of appointment to the Board Date of most recent letter of appointment
Dorothy Thompson (Chair) 1 December 2022 30 November 2022
Svein Richard Brandtzæg 20 November 2024 19 November 2024
Andrew Heath 1 April 2024 26 February 2024
Karin Meurk-Harvey 13 September 2021 3 December 2024
Vanessa Simms 21 June 2024 26 February 2024
Janice Stipp 1 December 2020 3 December 2024
Statement of voting at general meeting
The Remuneration Committee is committed to ongoing shareholder dialogue and takes an active
interest in voting outcomes. Where there are substantial votes against resolutions in relation to
directors’ remuneration, the Company seeks to understand the reasons for any such vote and will
report any actions in response to it. The following table sets out the binding vote at the AGM held
on 28 April 2023 in respect of the current Remuneration Policy and the advisory vote at the AGM
held on 30 April 2024 in respect of the Annual Report on Remuneration for the year ended
31December 2023.
Year Resolution Votes ‘for’ % for
Votes
‘against’ % against
Votes
‘withheld’ %
2023 To approve the
Remuneration Policy
683,772,096 98.04 13,640,012 1.96 410,841 —
2024 To approve the Annual
Report on Remuneration
678,625,474 98.73 8,729,791 1.27 182,080 —
Advisers to the Remuneration Committee
Korn Ferry has acted as adviser to the Committee since July 2020. Korn Ferry is a member of the
Remuneration Consultants Group and a signatory to its Code of Conduct. The Committee keeps the
independence of the advice provided under review and remains satisfied that Korn Ferry is sufficiently
independent to act as remuneration adviser to the Remuneration Committee. Korn Ferry provides
additional advice to the Company.
In 2024, the Company paid £40,500 (2023: £122,400) to Korn Ferry for services to the Remuneration
Committee. Figures exclude VAT and disbursements.
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Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
How we will operate the Policy in 2025
The Remuneration Committee notes that the 2024 UK Corporate Governance Code applies to the Company with effect from 1 January 2025.
Salary
Kiet Huynh will receive a salary increase of 3.9%, in line with the average workforce increase in the UK (excluding promotions), taking his annual salary to £709,585, effective from
1April2025
Ben Peacock will receive a salary increase of 6%, taking his annual salary to £455,800, effective from 1April 2025, noting that a benchmarking exercise was undertaken to ensure that
Ben’s salary does not fall too far below the mid-market level. Following this increase, Ben’s salary will be just below the lower quartile salary level for CFOs of companies that have a
similar market capitalisation to Rotork.
Benefits
Benefits comprise a car allowance, personal accident and private medical insurance and life assurance. Ben Peacock shall also be able to receive contributions towards relocation costs
related to his onboarding, in line with the Policy.
Pension
The pension allowance for the executive directors is aligned to the contribution available to the majority of the UK workforce. As at the date of this report, this is 10.24%. This rate will
increase to 10.35% for the directors and the wider UK workforce from 1 April 2025 in line with the changes introduced to increase UK employer NI contribution levels.
Annual bonus
In line with the current Remuneration Policy, the maximum opportunity for Kiet Huynh will be 150% of salary and the maximum opportunity for Ben Peacock will be 125% of salary.
Any bonus earned above 60% of the maximum opportunity will be deferred in shares for three years. Bonuses will be based on:
• Adjusted operating profit performance (60% of opportunity) – the plan is based on the 2025 Budget approved by the Board and the challenging nature of the targets and stretch
elements will be maintained.
• Cash generation (15% opportunity) – the target to achieve maximum outturn will remain at 110%, reflecting the value of a sustained focus on cash generation.
• ESG (10% of opportunity) – measures will be aligned to the three pillars of the ESG strategy. Half of the opportunity will be based on a TRIR health and safety measure with a
threshold set at 0.24 and a maximum at 0.20. The remaining 5% will be split across quantitative targets set to cover culture and employee engagement scores and qualitative targets
focusing on environmental innovation, particularly in relation to products and the positive impacts of customer engagement.
• Strategic personal objectives (15% of opportunity) – these will be set with a focus on the continued strategic development of the business with a focus on continuing delivery of the
Growth+ programme.
The specific targets relating to the bonus have not been disclosed as they are considered by the Remuneration Committee to be commercially sensitive but full details will be given on a
retrospective basis in next year’s report. The executive directors will be invited to participate and must agree in writing to the conditions pertaining to the Annual Bonus Plan, including
those relating to the post-cessation of employment shareholding arrangements that will apply to any bonus deferred in shares.
LTIP
The LTIP maximum award levels for 2025 will be 200% of salary for Kiet Huynh and 175% of salary for Ben Peacock. The awards will be subject to the following performance conditions:
• 30% will be based on adjusted EPS. Adjusted EPS growth must be at least 9% for 25% vesting, increasing on a straight-line basis to full vesting for adjusted EPS growth of 35% and
above. The targets will be based on adjusted EPS (i.e. excluding the impact of any material restructuring costs). However, the Committee will use its discretion to increase the targets
as appropriate, to take into account the Board’s expected return on any restructuring investment during the period.
• 30% will be based on relative TSR performance with 25% vesting at median, increasing to full vesting for upper quartile performance or above. The comparator group shall remain
the median to upper quartile of the FTSE 350 Industrial Goods and Services sector constituents.
• 30% will be based on economic profit. No payout will be received for a negative economic profit. The threshold target (0% vesting) will require the cumulative economic profit over
the three-year period to exceed that generated in the three year period to 2024 and the maximum target has been set such that it will require double-digit growth in post-tax profits,
alongside improved balance sheet efficiencies. Similar to adjusted EPS targets, these targets may be adjusted upwards to take into account the Board’s expected return on any
restructuring investment during the period. Details of the exact targets are considered by the Remuneration Committee to be commercially sensitive at the current time. However,
fulldetails of the targets and how economic profit has been calculated will be disclosed on vesting.
• 10% will be based on an absolute reduction in scope 1 and 2 CO
2
emissions with targets at least as demanding as the path required to meet the published 2030 SBTi target.
The awards will be granted following the publication of the 2024 results and will be made subject to executive directors agreeing in writing to all the conditions under which the awards
are made, including the post-cessation of employment shareholding arrangements that will apply to these awards. The executive directors will be required to retain any shares vesting
under the awards (net of tax) until the fifth anniversary of grant.
Annual Report on Remuneration continued
rotork.com Rotork Annual Report 2024157
Strategic report Corporate governance Finan ial statements
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Shareholding
guidelines
The executive directors are required to build and maintain a shareholding equivalent to their total variable pay opportunity (being 350% and 300% for the Chief Executive Officer and
Chief Financial Officer respectively) to be achieved within five years.
A requirement to hold shares for a period of two years post-cessation will apply, as described in the Share Ownership Policy, and is applicable only to share-based awards made after the
Share Ownership Policy was approved on 24 April 2020. In order to ensure adherence to the post-cessation holding requirements, executive directors will, as a condition of receiving any
and each share-based award, formally accept the post-cessation requirements in writing.
Non-executive
director fees
An increase to the Chair’s fee, the base Board fees and fees for additional Board responsibilities have been approved, noting that a benchmarking exercise has been undertaken and that
the increase for the wider workforce in the UK (excluding promotions) was 3.9%.
Chair: A fee increase of 18%, taking the annual fee to £320,000, effective from 1 April 2025.
1
Base Board fee: A fee increase of 3.9%, taking the annual fee to £67,300, effective from 1 April 2025.
An increase to the supplementary fees payable to those directors with additional responsibilities, as set out below:
Additional fee for chairing the Audit Committee: A fee increase of 3.9%, taking the annual fee to £14,500, effective from 1 April 2025.
Additional fee for chairing the Remuneration Committee: A fee increase of 3.9%, taking the annual fee to £14,500, effective from 1 April 2025.
Additional fee for the role of Senior Independent Non-executive Director: A fee increase of 13.3%, taking the annual fee to £12,000, effective from 1 April 2025.
2
Additional fee for chairing the Safety and Sustainability Committee: A fee increase of 3.9%, taking the annual fee to £10,400, effective from 1 April 2025.
Additional fee for undertaking the role of Non-executive Director for Workforce Engagement: A fee increase of 3.9%, taking the annual fee to £10,400, effective from 1 April 2025.
1 The increase will bring the Chair’s fee to the mid-market level against UK listed companies with a similar market capitalisation to Rotork, but would still be below that of the mid-market level of companies within the relevant UK sector.
2 The increase will bring the Senior Independent Non-executive Director’s fee closer to the medians of companies within the relevant UK sector and UK listed companies with a similar market capitalisation.
On behalf of the Board
Svein Richard Brandtzæg
Chair of the Remuneration Committee
10 March 2025
Annual Report on Remuneration continued
How we will operate the Policy in 2025 continued
Rotork Annual Report 2024 rotork.com158
Directors’ Remuneration report continued Strategic report Corporate governance Financial statements
Directors’ report
The directors present their report which
incorporates the management report required
under the Disclosure Guidance and Transparency
Rules (DTRs) for listed companies and the audited
accounts for the year ended 31 December 2024
as set out on pages 173 to 210. In compiling this
report, the directors have consulted with
themanagement of the Group.
Information required in the report
ofthe directors set out in the
StrategicReport
Information relating to the likely future
developments of the Company and its
subsidiaries and information relating to
theresearch and development activities of
theCompany and its subsidiaries, together
withadescription of the principal risks and
uncertainties that they face, are set out in
theStrategic Report on pages 70 to 77 and
areincorporated into this Directors’ Report
byreference.
Corporate governance statement
andTCFDdisclosures
The corporate governance statement, required
under Rule 7 of the DTRs, explaining how Rotork
has applied and complied with the 2018 UK
Corporate Governance Code (the 2018 Code) is
set out on page 96 and is incorporated into this
Directors’ Report by reference. A description of
the composition and operation of the Board
andits Committees, including the requisite
disclosures in relation to diversity, is set out on
pages 97 to 99 and is incorporated into this
Directors’ Report by reference. Full details of
the2018 Code can be found on the Financial
Reporting Council’s website at www.frc.org.uk/
library/standards-codes-policy/corporate-
governance/uk-corporate-governance-code/.
Rotork’s statement of compliance in implementing
the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD),
required to be made under UK Listing Rule
6.6.6R(8), is set out on page 79.
Additional disclosures
The Strategic Report can be found on pages 1to
89, and encompasses our Sustainability Report
(which is set out on pages 34 to 66). Acomplete
list of the Group’s subsidiaries has been included
on pages 208 to 210 to comply with Section 409
of the Companies Act 2006 (the Act). Other
information that is relevant to this report, and is
incorporated by reference, including information
required in accordance with the Act and UK
Listing Rule 6.6.1R, can belocated as follows:
UK Listing Rule
statement Detail Page reference
6.6.1R (3) Details of long-term
incentive schemes
Note 27 to
thefinancial
statements and
the Directors’
Remuneration
Report on
pages 131
to158
6.6.1R (11) Shareholder waivers
of dividends
Note 18 to
thefinancial
statements
6.6.1R (12) Shareholder waivers
of future dividends
Note 18 to
thefinancial
statements
6.6.1R (1-2),
(4-10) and (13)
Not applicable N/A
Principal activity
The Group manufactures intelligent flow control
equipment and instrumentation for oil and gas,
water and wastewater, power, chemical, process
and industrial applications. It operates globally
serving customers in 170 countries through a
network of offices and manufacturing facilities.
The Group employs circa 3,500 employees
worldwide and is headquartered in Bath, UK.
Company status
Rotork plc is incorporated as a public limited
company and is registered in England and Wales
with the registered number 00578327. Its
registered office is Rotork House, Brassmill Lane,
Bath, United Kingdom, BA1 3JQ. Rotork plc’s
ordinary shares are listed in the commercial
companies (equity shares) category on the
London Stock Exchange (LON:ROR) and Rotork
plc is aconstituent member of the FTSE 250
Index.Rotork plc’s legal entity identifier is:
213800AH5RZIHGWRJ718. The Company’s
share registrars are Equiniti Limited, which are
located at Aspect House, Spencer Road, Lancing,
West Sussex, BN99 6DA.
Results and dividends
The results for the year ended 31 December 2024
are set out in the financial statements on pages
173 to 177. The Board has recommended the
following dividends:
Interim dividend paid
on 23 September 2024:
2.75p per ordinary share
(2023: 2.55p)
Proposed final
dividend to be paid
on3 June 2025:
5.00p per ordinary share
(2023: 4.65p)
Total dividend
forFY24:
7.75p per ordinary share
(2023: 7.20p)
Subject to shareholder approval, the 2024 final
dividend will be paid on 3 June 2025, to ordinary
shareholders whose names appear onthe
register at the close of business on 25April 2025.
The last date to elect for theDividend Reinvestment
Plan (DRIP) is 12May 2025. The Rotork DRIP is
provided by Equiniti Financial Services Limited.
The DRIP enables the Company’s shareholders
toelect to have their cash dividend payments
used
to purchase the Company’s shares.
Moreinformation
can be found at
www.shareview.co.uk/info/drip.
Directors
The directors of the Company who held office
during the year and up to the date of signing
thefinancial statements were as follows:
Chair:
Dorothy Thompson, CBE
Executive
directors:
Kiet Huynh
Ben Peacock
Independent
non-executive
directors:
Andrew Heath
(SeniorIndependent
Non-executive Director)
Svein Richard Brandtzæg
Karin Meurk-Harvey
Vanessa Simms
Janice Stipp
The biographies and other details of each of
thecurrent directors are set out on pages 94
and 95.
Former directors who held office on the Board
during the course of 2024 included: Jonathan
Davis and Ann Christin Andersen (who both
stepped down from the Board on 30 April 2024)
and Tim Cobbold (who stepped down on
31December 2024).
Details of the interests in the Company’s shares
held by all directors who held office during the
year are set out in the Directors’ Remuneration
Report, which is incorporated by reference to
this report and can be found on page 153.
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Directors’ report Strategic report Corporate governance Financial statements
Directors’ indemnification and insurance
The Company’s Articles of Association provide
for the directors and officers of the Company
tobe appropriately indemnified, subject to the
provisions of the Act. The Company has granted
indemnities to each director and the Group
General Counsel & Company Secretary in respect
of any liabilities incurred inrelation to acts or
omissions arising in the ordinary course of their
duties, but only to the extent permitted by law.
The Company also purchases and maintains
insurance for the directors and officers of the
Company in respect of potential legal action
instigated against its directors, to the full extent
as permitted by Section 233 of the Act.
Powers of the directors
As set out in the Company’s Articles of
Association, the business of the Company is
managed by the Board which may exercise all
the powers of the Company. The powers of the
directors are also determined by prevailing UK
legislation and anyspecific authorities that the
Company’s shareholders may approve from
timeto time.
Appointment and removal of directors
The Board may appoint a director, either to fill a
vacancy or as an additional director. Any director
appointed by the Board must retire at the next
AGM of the Company and put themself forward
for re-appointment by the shareholders. In
accordance with the recommendations of the
Code, each current member of the Board will
retire from office and will submit themself for
election or re-election at the 2025 Annual
General Meeting.
In addition to any power of removal conferred
by the Companies Act 2006, the Company may
by ordinary resolution remove any director
before the expiration of their period of office
and may, subject to the Articles of Association,
by ordinary resolution appoint another person
who is willing to act as a director in their place.
Committed to the highest standards
ofethical behaviour
High ethical standards are fundamental to
theway in which we do business. Respecting
internationally-proclaimed human rights,
promoting an open and honest culture, having
azero-tolerance approach to bribery and
corruption worldwide, and selecting channel
partners and suppliers with sound reputations
inthe marketplace are important principles
thatthe Group adheres to.
Code of Conduct
A refreshed Code of Conduct was launched in
2024, which sets out the standards of behaviour
that Rotork expects from anyone acting on
Rotork’s behalf. This is supplemented by a
rangeof additional policies that sit beneath
theCode of Conduct, covering Anti-Bribery
andCorruption, Speak Up, Confidentiality,
Conflicts of Interest, Fair Competition, Gifts
andHospitality, Data Protection, Modern Slavery
and Trade Sanctions. Training is provided to
support employees’ understanding of the
Codeof Conduct and these policies.
Our Code of Conduct is published on our
corporate website at www.rotork.com/en/
sustainability/esg-reports-and-policies/rotork-
code-of-conduct.
Our suppliers must adhere to our
SupplierCodeof Conduct, which is also
published onourcorporate website at
www.rotork.com/en/terms-and-conditions/
suppliers/supplier-code-of-conduct.
Whistleblowing
Rotork encourages the reporting of any
suspected wrongdoing. Our Speak Up Policy
provides our employees and third parties (such
as our suppliers) with various ways to alert
management and directors to any concerns.
Thisincludes an independent Speak Up helpline,
which is designed to assist in facilitating the
reporting of any concerns confidentially, and
anonymously if preferred. The Company has a
strict non-retaliation policy in place to protect
those raising concerns.
All Speak Ups are investigated thoroughly,
however communicated. The Board of directors
receives updates on the nature and number of
Speak Up concerns that the Company may receive.
Our Speak Up Policy is published on our corporate
website at www.rotork.com/en/sustainability/
esg-reports-and-policies/speak-up-policy. Details
of how to use the Company’s Speak Up hotline
can be found in the Speak Up Policy or Code
ofConduct.
Anti-bribery and corruption
Rotork has a zero-tolerance policy to bribery and
corruption worldwide, irrespective of country or
business culture. Both our Code of Conduct and
Anti-Bribery and Corruption Policy make it clear
that our employees will never offer, pay or solicit
bribes in any form. Our Group Gifts and Hospitality
Policy sets out our key principles regarding the
giving and receiving of gifts and hospitality and
the process that our employees are required to
follow should they intend to offer or accept them.
We only engage channel partners and suppliers
which pass our selection process and which we
are satisfied will conduct business legally and
ethically. We monitor these relationships on
anongoing basis and take appropriate action
against any supplier that fails to adhere to the
Supplier Code of Conduct, or channel partner
whose behaviour is found not to align with our
Code of Conduct.
Modern Slavery Act
In March 2025, the Board approved an updated
Modern Slavery Act Statement which can be
found on our corporate website at www.rotork.
com/en/investors/modern-slavery-statement.
Theupdated statement was considered to reflect
Rotork’s approach to identifying, monitoring and
eradicating human slavery and trafficking in its
business and supply chain, together with the
continual improvements to be made during the
coming year.
Charitable donations
Rotork supports its chosen charities, Pump Aid
and Renewable World. Additionally, we make
various local donations to charitable causes
thatare relevant to the communities in which
Rotork’s operating sites are based. Donations are
also directed to the Rotork Benevolent Support
Fund, a charity that provides short-term financial
support to employees, former employees and
their families facing financial hardship. Further
details are provided on pages 62 to 63.
Political donations or political
expenditureincurred
No political donations were made, or political
expenditure incurred, during the year. The Group
has a policy of not making political donations
inany part of the world and this will continue.
However, it is possible that certain routine
activities undertaken by the Company and its
subsidiaries might unintentionally fall within the
wide definition of matters constituting political
donations and expenditure in the Act. Accordingly,
at the 2025 AGM, the Company is seeking a
renewal of authority to ensure that it does not
inadvertently commit any breaches of the Act
through the undertaking of routine activities
that would not normally be considered to
comprise political donations or expenditure.
Further details of the proposed ordinary
resolution are provided within the 2025
AGMNotice.
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Directors’ report continued Strategic report Corporate governance Financial statements
Use of financial instruments
An explanation of the Group policies on the
useof financial instruments and financial
riskmanagement objectives is contained
innote28 to the financial statements.
Existence of branches outside the UK
The Company has no branches outside of
theUK.
Share capital
Details of the Company’s share capital including
the rights and obligations attached to each class
of shares and the ordinary shares issued during
2024 are summarised in note 18 of the financial
statements. Ordinary shares of 0.5p each
represent over 99.9% of the Company’s total
share capital and £1 non-redeemable preference
shares represent less than 0.1% of the
Company’s total share capital.
There are no securities of the Company
carryingspecial rights with regard to the
controlof the Company.
At the Company’s last AGM held on 30 April 2024,
the shareholders authorised the Company to
make market purchases of ordinary shares
limited to just under approximately 10% of its
issued ordinary share capital at that time and
ofcertain issued preference shares, and to
allotshares within certain limits approved by
shareholders. These authorities will expire at the
2025 AGM and appropriate renewals are being
sought from shareholders at the 2025 AGM.
Further details of the resolutions proposed are
provided within the 2025 AGM Notice.
Consistent with the Group’s capital allocation
policy the Company announced a share buyback
programme on 5 March 2024, to return £50m
(excluding stamp duty and expenses) of cash to
shareholders. In accordance with the authorities
provided by shareholders atthe 2023 and 2024
AGMs respectively, the Company repurchased
15,141,358 ordinary shares with a nominal value
of 0.5p each for a total consideration of
£49,999,981.08 during the 2024 financial year.
All of the shares purchased in the share buyback
programme were subsequently cancelled. The
Company does not hold any shares in treasury.
The Company entered into irrevocable, non-
discretionary arrangements with a broker in
order to effect 2024 share buyback programme.
The Company intends to undertake a further
£50m share buyback programme during 2025.
JTC Employer Solutions Limited is a shareholder
which acts as the trustee of Rotork’s Employee
Benefit Trust (EBT). It is used to purchase
Company shares in the market from time to time
and hold them for the benefit of employees,
including satisfying outstanding awards under
the Company’s various employee share plans.
The EBT purchased a total of 3,129,279 shares
during the year for an aggregate consideration
of £10,362,788 (including dealing costs) and
released 973,309 shares to satisfy share plan
awards. As at 31 December 2024, the EBT held
3,721,518 Rotork plc ordinary shares (0.44%)
ofthe issued share capital in trust. A dividend
waiver remains in place from the trustee in
respect of the dividends payable by the Company
on the shares held in the EBT. Further details can
be found in note 18 to the financial statements.
The Company’s Articles of Association contain
customary restrictions on the transfer of shares
as applicable only in certain limited
circumstances (e.g. in relation to transfers to a
minor). Save for those provisions, there are no
restrictions on the transfer of ordinary shares in
the capital of the Company other than certain
restrictions which may be required from time to
time by law, for example, insider trading law. In
accordance with the Company’s Securities
Dealing Code, directors and certain employees
are required to seek the prior approval of the
Company in order to deal in its shares.
The Company is not aware of any agreements
between shareholders that may result in
restrictions on the transfer of securities and/or
voting rights. The Company’s Articles of
Association contain limited restrictions on
theexercise of voting rights (e.g. in relation
todisenfranchised shares following the issue
ofanotice to shareholders under Section 793
ofthe Companies Act 2006).
The Company’s share schemes each contain
provisions providing voting rights to the
schemetrustee.
Amendments to the Company’s
Articles ofAssociation
The Company’s Articles of Association may only
be amended by special resolution at a general
meeting of the shareholders and were last
updated and approved by shareholders at the
AGM held on 30 April 2021.
Change of control provisions
The £75m unsecured revolving credit facility,
under which the Company is the borrower,
contains provisions allowing the lenders to
cancel their loan commitment and require
repayment of any outstanding amounts
uponachange of control of the Company.
Compensation for loss of office
There are no agreements between the Company
and its directors or employees that provide for
compensation for loss of office or employment
that occurs because of a takeover bid, except
that provisions of the Company’s share schemes
and plans may cause options and awards granted
to employees and directors under such schemes
and plans to vest on a change of control of
theCompany.
Greenhouse gas emissions
The disclosures concerning greenhouse gas
emissions required by law are set out in the
keyperformance indicators on page 15, and
contained within the Sustainability Review on
pages 34 to 66. Our detailed greenhouse gas
footprint is set out on pages 84 to 85.
Disabled persons and
employeeengagement
The disclosures concerning the Group’s policies
on the employment of disabled persons and
how we engage with our employees are set out
on pages 59 and 106 to 113.
Engagement with suppliers
andcustomers
Details of engagement activities with our
suppliers and customers are set out on pages
110 to 111.
Relations with shareholders
The Board supports the aims of the 2018 UK
Corporate Governance Code and the UK
Stewardship Code to promote engagement and
interaction between listed companies and their
major shareholders.
The Board welcomes the opportunity for
investors and shareholders to engage directly
with the Chair and Senior Independent
Non-executive Director alongside the Chief
Executive Officer and Chief Financial Officer.
Information on how the Board has engaged with
its shareholders is set out on pages 108 to 109.
A range of online and in-person investor
relations events following the publication of
thefull-year and half-year results have been
scheduled for 2025.
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Directors’ report continued Strategic report Corporate governance Financial statements
Substantial shareholders
As at 31 December 2024, the Company had
been notified under DTR 5 of the following
interests in its shares representing 3% or more
of the voting rights in its issued share capital.
Save for the notification received from Liontrust
Investment Partners LLP on 6 March 2025 (and
captured within the table below), there were no
changes in the interests in shares notified to the
Company between 31 December 2024 and
10March 2025.
Identity
Number of
voting rights
(direct and
indirect)
% of
voting rights
BlackRock, Inc. 45,840,353 5.13
Liontrust Investment
Partners LLP 42,213,708 4.99
Wellington Management
Group LLP 42,630,396 4.96
Disclosure of information to the
externalauditor
The directors who held office at the date of
approval of this Directors’ Report confirm that,
so far as they are each aware, there is no relevant
audit information of which the Company’s
external auditor (KPMG LLP) is unaware, and
each director has taken all the steps that they
ought to have taken as a director to make
themself aware of any relevant audit information
and to establish that the Company’s external
auditor is aware of that information.
‘Going concern’ basis of preparation
After making enquiries, the directors are
satisfied that the Group has sufficient resources
to continue in operation for the foreseeable
future, being a period of not less than 12 months
from the date of this Directors’ Report. Accordingly,
they continue to adopt the going concern basis
in preparing the financial statements. In forming
this view, the directors have considered trading
and cash flow forecasts, financial commitments,
the significant order book with customers spread
across different geographic areas and industries,
available facilities and the net cash position.
Forfurther information see pages 173 to 177.
Viability statement
In line with the 2018 UK Corporate Governance
Code, the directors have carried out a rigorous
review of the prospects of the current business,
and its ability to meet its liabilities through to
atleast the end of December 2027. For further
information, see page 78 which is incorporated
into this Directors’ Report by reference.
Events after the reporting period
Details of events after the reporting period,
including the agreement to acquire NOAH
Actuation Co., Ltd. in March 2025, can be
foundin Note 33 to the financial statements
onpage 204.
Annual General Meeting
The 2025 Annual General Meeting of the
Company will be held on 2 May 2025. Full
details of the resolutions to be proposed at the
AGM, as well as shareholders’ rights with respect
to attendance, participation in the meeting and
the process for submission of proxy votes in
advance of the meeting, are set out in the Notice
of AGM. The Notice of AGM will be issued to
shareholders at least 20 working days prior to
the AGM and will also be made available on the
Company’s website. Shareholders are requested
to check the Company’s website (www.rotork.com)
for additional information and for the latest
details concerning the 2025 AGM.
External auditor
Upon the recommendation of the Audit
Committee and approval of the Board, a
resolution to re-appoint KPMG LLP as the
Company’s external auditor, alongside a
resolution to authorise the Audit Committee
todetermine its remuneration, will be proposed
at the forthcoming AGM. The external auditor
contract was last put out to competitive tender
in 2023. Pursuant to the prevailing regulations,
the Company is required to re-tender the external
auditor contract by no later than for the 2034
financial year.
The Directors’ Report was approved by the
Board on 10 March 2025.
By order of the Board
Stuart Pain
Group General Counsel & Company Secretary
10 March 2025
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Directors’ report continued Strategic report Corporate governance Financial statements
Statement of directors’ responsibilities for preparing
the Annual Report and financial statements
Directors’ responsibilities
The directors are responsible for preparing the
Annual Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare
financial statements for each financial year.
Under that law, the directors are required to
prepare the Group financial statements in
accordance with UK-adopted International
Accounting Standards. The directors have also
chosen to prepare the parent company financial
statements in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework.
Under company law, the directors must not
approve the financial statements unless they are
satisfied that they give a true and fair view of
the state of affairs of the Company and of the
profit or loss of the Company for that period. In
preparing these financial statements, International
Accounting Standard 1 requires that directors:
• Properly select and apply accounting policies.
• Make judgements and estimates that are
reasonable, relevant, and reliable and, in
respect of the parent Company financial
statements only, prudent.
• For the parent Company financial statements,
state whether applicable UK accounting
standards have been followed, subject to any
material departures disclosed and explained
in the parent Company financial statements.
• Present information, including accounting
policies, in a manner that provides
relevant,reliable, comparable and
understandable information.
• Provide additional disclosures when
compliance with the specific requirements
inIFRSs are insufficient to enable users
tounderstand the impact of particular
transactions, other events and conditions
onthe entity’s financial position and
financialperformance.
• Assess the Group and parent Company’s
ability to continue as a going concern,
disclosing, as applicable, matters related
togoing concern.
• Use the going concern basis of accounting
unless they either intend to liquidate the
Group or the parent Company or to cease
operations, or have no realistic alternative
butto do so.
The directors are responsible for keeping
adequate accounting records that are sufficient
to show and explain the Company’s transactions
and disclose with reasonable accuracy at any
time the financial position of the Company
andenable them to ensure that the financial
statements comply with the Companies Act 2006.
They are also responsible for safeguarding the
assets of the Company and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for the maintenance
and integrity of the corporate and financial
information included on the Company’s website.
Legislation in the United Kingdom governing
thepreparation and dissemination of financial
statements may differ from legislation in
otherjurisdictions.
In accordance with Disclosure Guidance and
Transparency Rule DTR 4.1.16R, the financial
statements will form part of the annual financial
report prepared under DTR 4.1.17R and 4.1.18R.
The auditor’s report on these financial statements
provides no assurance over whether the annual
financial report has been prepared in accordance
with those requirements.
Directors’ responsibility statement
pursuant to the Disclosure Guidance
andTransparency Rules
Each of the currently serving directors, whose
names and functions are listed on pages 94 and
95, confirm that, to the best of each person’s
knowledge and belief:
• The financial statements, prepared in
accordance with the applicable set of
accounting standards, give a true and fair
view of the assets, liabilities, financial position
and profit of the Group and Company.
• The Report of the Directors includes a fair
review of the development and performance
of the business and the position of the Group
and Company, together with a description of
the principal risks and uncertainties that they
face; and
• Having taken advice from the Audit Committee,
the Annual Report and financial statements,
taken as a whole, is fair, balanced and
understandable and provides the information
necessary for shareholders to assess the
Company’s position and performance,
strategy and business model.
Kiet Huynh
Chief Executive Officer
10 March 2025
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Statement of directors’ responsibilities Strategic report Corporate governance Financial statements
Financial
statements
In this section
165 Independent auditor’s report
tothemembers of Rotork plc
173 Consolidated income statement
Consolidated statement of
comprehensiveincome
174 Consolidated balance sheet
175 Consolidated statement of changes inequity
177 Consolidated statement ofcashflows
178 Notes to the Group financialstatements
205 Company balance sheet
Companystatement of changes inequity
206 Notes to the Company financialstatements
Rotork Annual Report 2024 rotork.com164
Financial statements Strategic report Corporate governance Financial statements
Independent auditor’s report
1. Our opinion is unmodified
We have audited the financial statements of Rotork plc (“the Company”) for the year ended
31December 2024 which comprise the consolidated income statement, consolidated statement
ofcomprehensive income, consolidated balance sheet, consolidated statement of changes in equity,
consolidated statement of cash flows, company balance sheet and company statement of changes
inequity and the related notes, including the accounting policies in notes 1 and (a).
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent
Company’s affairs as at 31 December 2024 and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards;
• the parent Company financial statements have been properly prepared in accordance with
UK accounting standards, including FRS 101 Reduced Disclosure Framework; and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”)
and applicable law. Our responsibilities are described below. We believe that the audit evidence we
have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent
with our report to the audit committee.
We were first appointed as auditor by the shareholders on 30 April 2024. The period of total
uninterrupted engagement is for the one financial year ended 31 December 2024. We have fulfilled
our ethical responsibilities under, and we remain independent of the Group in accordance with, UK
ethical requirements including the FRC Ethical Standard as applied to listed public interest entities.
No non-audit services prohibited by that standard were provided.
Overview
Materiality
Group financial statements as a whole £8.0m
4.4% of Normalised Group profit before tax
Key audit matters
Recurring risks
Revenue recognition
Parent Company: Recoverability of the parent Company’s debt due from
Group entities
2. Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance
inthe audit of the financial statements and include the most significant assessed risks of material
misstatement (whether or not due to fraud) identified by us, including those which had the greatest
effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts
of the engagement team. We summarise below the key audit matters, in decreasing order of audit
significance, in arriving at our audit opinion above, together with our key audit procedures to address
those matters and, as required for public interest entities, our results from those procedures. These
matters were addressed, and our results are based on procedures undertaken, in the context of,
andsolely for the purpose of, our audit of the financial statements as a whole, and in forming our
opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate
opinion on these matters.
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Report on the audit of the financial statements continued
2. Key audit matters: our assessment of risks of material misstatement continued
The risk Our response
Revenue recognition
(£754.4 million; 2023: £719.2 million)
Refer to page 123 (Audit Committee
Report), page 179 (accounting policy
and financial disclosures).
Revenue recognised in an inappropriate period
There is clear incentive and pressure for fraudulent revenue recognition driven
by the Growth+ strategy and external expectations of revenue growth which
are then reflected in internal targets.
The Group has historically recorded greater amounts of revenue than the
average month in December of each year which presents an opportunity
toconceal fraudulent revenue recognition at the period end.
Our procedures included:
• Test of detail: We agreed a sample of sales transactions prior to the year
endbased on their financial significance to purchase order and customer
confirmation of collection or delivery to assess whether the performance
obligation has been met and that revenue has been recognised in the
appropriate accounting period.
• Test of detail: We agreed a sample of post year end credit notes, based on
their financial significance, to assess that revenue has not been overstated
todate.
We performed the detailed tests above rather than seeking to rely on any of the
Group‘s controls as detailed testing is a more effective method of obtaining audit
evidence due to the timing of when the control operates.
Our results
The results of our testing were satisfactory and we considered the amount
ofrevenue recognised in the year to be acceptable.
Parent Company: Recoverability of
the parent Company’s debt due from
Group entities
(£413.2 million; 2023: £367.1) million
Refer to page 205 (financial disclosures).
Low risk, high value
The carrying amount of the intra-group debtor balance represents 90% (2023:
89%) of the parent Company’s total assets.
Their recoverability is not at a high risk of material misstatement or subject
tosignificant judgement. However, due to their materiality in the context ofthe
parent Company financial statements, this is considered to be the areathat had
the greatest effect on our overall parent Company audit.
Our procedures included:
• Assessment of risk of default: For a selection of the highest value intra-
group debtors representing 90% of the balance, we evaluated the likely risk
of default (where default is defined as the inability of the subsidiary to pay
within 30 days of the debt being called) with reference to the subsidiaries’
netasset values and forecasts of future profitability.
• Assessing subsidiary audits: We assessed the work performed by us and
thecomponent auditors of the that sample of subsidiaries and considered
theresults of that work on the subsidiaries’ profits and net assets.
We performed the tests above rather than seeking to rely on any of the parent
Company’s controls because the nature of the balance is such that we would expect
to obtain audit evidence primarily through the procedures described.
Our results
We found the intra-group debtor balances to be acceptable.
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Report on the audit of the financial statements continued
3. Our application of materiality and an overview of the scope of our audit
Our application of materiality
Materiality for the Group financial statements as a whole was set at £8.0m, determined with
reference to a benchmark of Group profit before tax, normalised to add back this year’s Business
Transformation costs of £17.2m, the Defined benefit scheme settlement loss of £18.0m and this
year’s Other costs of £4.7m as disclosed in note 5, of which it represents 4.4%. We adjusted for
these items because they do not represent the normal, continuing operations of the Group.
Materiality for the parent Company financial statements as a whole was set at £7.0m, determined
with reference to a benchmark of parent Company net assets, of which it represents 2.1%.
In line with our audit methodology, our procedures on individual account balances and disclosures
were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level
the risk that individually immaterial misstatements in individual account balances add up to a material
amount across the financial statements as a whole.
Performance materiality for the Group was set at 65% of materiality for the financial statements as
awhole, which equates to £5.2m. We applied this percentage in our determination of performance
materiality based on the level of identified misstatements, control deficiencies and changes in the
control environment during the prior period.
Performance materiality for the parent Company was set at 75% of materiality for the financial
statements as a whole, which equates to £5.2m. We applied this percentage in our determination
ofperformance materiality because we did not identify any factors indicating an elevated level of risk.
We agreed to report to the audit committee any corrected or uncorrected identified misstatements
exceeding £0.4m, in addition to other identified misstatements that warranted reporting on
qualitative grounds.
Overview of the scope of our audit
This year, we applied the revised group auditing standard in our audit of the consolidated financial
statements. The revised standard changes how an auditor approaches the identification of
components, and how the audit procedures are planned and executed across components.
In particular, the definition of a component has changed, shifting the focus from how the entity
prepares financial information to how we, as the group auditor, plan to perform audit procedures to
address group risks of material misstatement (“RMMs”). Similarly, the group auditor has an increased
role in designing the audit procedures as well as making decisions on where these procedures are
performed (centrally and/or at component level) and how these procedures are executed and
supervised. In this report we provide an indication of scope coverage on the new basis.
We performed risk assessment procedures to determine which of the Group’s components are likely
to include risks of material misstatement to the Group financial statements and which procedures to
perform at these components to address those risks.
In total, we identified 62 components, having considered our evaluation of the Group’s operational
structure, geographical locations, the presence of key audit matters and our ability to perform audit
procedures centrally.
Of those, we identified 3 quantitatively significant components which contained the largest percentages
of either total revenue or total assets of the Group, for which we performed audit procedures.
We also identified 9 components as requiring special audit consideration, owing to Group risk
relating to revenue residing in these components.
Additionally, having considered qualitative and quantitative factors, we selected 6 components with
accounts contributing to the specific RMMs of the Group financial statements.
Accordingly, we performed audit procedures on 8 components, of which we involved component
auditors in performing the audit work on 16 components. We performed audit procedures on the
items excluded from the normalised Group profit before tax used as the benchmark for our materiality.
We also performed the audit of the parent Company.
We set the component materialities, ranging from £0.8m to £4.0m, having regard to the mix of size
and risk profile of the Group across the components.
£8.0m
Whole financial statements materiality
£5.2m
Whole financial statements
performance materiality
£4.0m
Range of materiality at 18 components
(£0.8m-£4.0m)
£0.4m
Misstatements reported to the
auditcommittee
Normalised PBT
Group materiality
Normalised Group profit before tax Group materiality
£8.0m
£180.4m
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Group total current assets
Report on the audit of the financial statements continued
3. Our application of materiality and an overview of the scope of our audit continued
Overview of the scope of our audit continued
Our audit procedures covered 70% of Group revenue.
We performed audit procedures in relation to components that accounted for 68% of the total
profits and losses that made up Group profit before tax and 78% of Group total current assets.
For the remaining components for which we performed no audit procedures, no component
represented more than 3.7% of Group total revenue, the total profits and losses that made up Group
profit before tax or Group current assets. We performed analysis at an aggregated Group level to
re-examine our assessment that there is not a reasonable possibility of a material misstatement in
these components.
Impact of controls on our group audit
The Group has nine main, separate ERP IT systems relevant to our group audit. These include both
the legacy systems which have been in place for a number of years, the Group’s new ERP system
which is in use at a small number of components, as well as a consolidation system. With support
from our IT Auditors we gained an understanding of these systems.
Our testing, including further procedures in response to identified deficiencies, demonstrated that
we were able to rely on general IT controls and automated controls in relation to the consolidation
system in determining the work to be performed over certain consolidation activities. For the other
systems, we did not plan to rely on IT controls due to deficiencies and, in some cases, informalities
identified as part of our risk assessment procedures, and the diverse range of systems.
For other areas of the audit, given we did not plan to rely on the related IT controls and considering
the most efficient and effective approach for gaining the appropriate audit evidence, we took a
predominantly substantive audit approach in all areas of our audit. We adopted a data-oriented
approach to testing both manual and automated journals and used data and analytical routines to
test revenue across all components. Given that we did not rely on the related IT controls, a manual
testing approach was performed over the completeness and accuracy of data used in these routines
and in respect of system data used in our substantive testing on other transactional areas.
Group revenue
The total profits and losses that made
up Group profit before tax
Group auditor oversight
As part of establishing the overall Group audit strategy and plan, we conducted the risk assessment
and planning discussion meetings with component auditors to discuss Group audit risks relevant to
the components, including the key audit matter in respect of Revenue recognition.
We instructed component auditors as to the significant areas to be covered, including the relevant
risks detailed above and the information to be reported back.
We visited 7 component auditors in the United Kingdom, the United States, India, China, Italy,
SouthKorea and Singapore to assess the audit risks and strategy. Video and telephone conference
meetings were also held with these component auditors and others that were not physically visited.
At these visits and meetings, the results of the planning procedures and further audit procedures
communicated to us were discussed in more detail, and any further work required by us was then
performed by the component auditors.
We inspected the work performed by the component auditors for the purpose of the Group audit
and evaluated the appropriateness of conclusions drawn from the audit evidence obtained and
consistencies between communicated findings and work performed, with a particular focus on
inspecting work relating to the Revenue recognition key audit matter, the risk of management
override of controls and inventory.
Our audit procedures covered the following
percentage of Group revenue:
We performed audit procedures in relation to components that accounted for the following percentages
of the total profits and losses that made up Group profit before tax and Group current assets:
68%
78%
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70%
4. Impact of climate change on our audit
We have considered the potential impacts of climate change on the financial statements as part
ofplanning our audit.
The key factors of Rotork’s business which were relevant in our considerations were the current
andforecast levels of trade with customers in the Oil and Gas industry (and impact on continued
demand for Rotork’s products), the geographical locations of key factories and Rotork’s own
decarbonisation targets.
We have performed a risk assessment over how climate change may impact the financial statements
and our audit. We held discussions with our own climate change professionals to challenge our risk
assessment including goodwill impairment, useful economic lives of PPE and going concern.
Taking into account the extent of headroom in the goodwill impairment assessment, the remaining
useful economic lives of PPE and the nature of the Group’s products, our assessment is that climate
related risks to the Group’s strategy and financial planning did not have a significant impact on our
audit given the nature of the Group’s operations.
We have read the disclosure of climate related information on pages 34 to 66 of the front half of the
annual report and considered consistency with the financial statements and our audit knowledge.
5. Going concern
The directors have prepared the financial statements on the going concern basis as they do not
intend to liquidate the Group or the parent Company or to cease their operations, and as they have
concluded that the Group’s and the parent Company’s financial position means that this is realistic.
They have also concluded that there are no material uncertainties that could have cast significant
doubt over their ability to continue as a going concern for at least a year from the date of approval
ofthe financial statements (“the going concern period”).
We used our knowledge of the Group, its industry, and the general economic environment to
identify the inherent risks to its business model and analysed how those risks might affect the
Group’s and parent Company’s financial resources or ability to continue operations over the going
concern period. The risks that we considered most likely to adversely affect the Group’s and parent
Company’s available financial resources over this period were:
• Ability of Rotork to deliver forecast growth in 2025 and 2026 from key customers.
• Potential impact of significant one-off cash transactions impacting the liquidity of the Group.
We considered whether these risks could plausibly affect the liquidity in the going concern period by
comparing severe, but plausible downside scenarios that could arise from these risks individually and
collectively against the level of available financial resources indicated by the Group’s financial forecasts.
Our conclusions based on this work:
• we consider that the directors’ use of the going concern basis of accounting in the preparation
ofthe financial statements is appropriate;
• we have not identified, and concur with the directors’ assessment that there is not, a material
uncertainty related to events or conditions that, individually or collectively, may cast significant
doubt on the Group’s or parent Company’s ability to continue as a going concern for the going
concern period;
• we have nothing material to add or draw attention to in relation to the directors’ statement in
note 1 to the financial statements on the use of the going concern basis of accounting with no
material uncertainties that may cast significant doubt over the Group and parent Company’s use
of that basis for the going concern period, and we found the going concern disclosure in note 1
to be acceptable; and
• the related statement under the Listing Rules set out on page 162 is materially consistent with the
financial statements and our audit knowledge.
However, as we cannot predict all future events or conditions and as subsequent events may result
inoutcomes that are inconsistent with judgements that were reasonable at the time they were
made, the above conclusions are not a guarantee that the Group or the parent Company will
continue in operation.
6. Fraud and breaches of laws and regulations - ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or
conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity
tocommit fraud. Our risk assessment procedures included:
• Enquiring of directors, the audit committee, internal audit and inspection of policy documentation
as to the Group’s high-level policies and procedures to prevent and detect fraud, including the
internal audit function, and the Group’s channel for “whistleblowing”, as well as whether they
have knowledge of any actual, suspected or alleged fraud.
• Reading Board and audit committee minutes.
• Considering remuneration incentive schemes and performance targets for management and
directors, including the relevant targets for management remuneration.
• Using analytical procedures to identify any unusual or unexpected relationships.
• Our forensic professionals assisted us in identifying key fraud risk factors. This included attending
a fraud risk brainstorm and holding discussions with the engagement team.
We communicated identified fraud risks throughout the audit team and remained alert to any
indications of fraud throughout the audit. This included communication from the Group auditor to
component auditors of relevant fraud risks identified at the Group level and requesting component
auditors performing procedures at the component level to report to the Group auditor any identified
fraud risk factors or identified or suspected instances of fraud.
Report on the audit of the financial statements continued
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6. Fraud and breaches of laws and regulations - ability to detect continued
Identifying and responding to risks of material misstatement due to fraud continued
As required by auditing standards, and taking into account possible pressures to meet profit targets
we perform procedures to address the risk of management override of controls and the risk of
fraudulent revenue recognition, in particular:
• the risk that Group and component management may be in a position to make inappropriate
accounting entries; and
• the risk that revenue from the sale of goods is overstated through recording revenues in the
wrong period.
We did not identify any additional fraud risks.
Further detail in respect of revenue recognition is set out in the key audit matter disclosures in
section 2 of this report.
In determining the audit procedures we took into account the results of our evaluation and testing
ofthe operating effectiveness of some of the Group-wide fraud risk management controls.
We also performed procedures including:
• Identifying journal entries and other adjustments to test at the Group level and for selected
components based on risk criteria and comparing the identified entries to supporting documentation.
These included those posted by senior finance management, and those posted to unusual accounts.
• Assessing whether the judgements made in making accounting estimates are indicative of a
potential bias.
Identifying and responding to risks of material misstatement due to non-compliance with laws
and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material
effect on the financial statements from our general commercial and sector experience and through
discussion with the directors (as required by auditing standards), and discussed with the directors the
policies and procedures regarding compliance with laws and regulations.
As the Group is regulated, our assessment of risks involved gaining an understanding of the control
environment including the entity’s procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team and remained alert to any
indications of non-compliance throughout the audit. This included communication from the Group
auditor to component auditors of relevant laws and regulations identified at the Group level, and a
request for component auditors to report to the Group audit team any instances of non-compliance
with laws and regulations that could give rise to a material misstatement at the Group level.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Group is subject to laws and regulations that directly affect the financial statements
including financial reporting legislation (including related companies legislation), distributable profits
legislation and taxation legislation and we assessed the extent of compliance with these laws and
regulations as part of our procedures on the related financial statement items.
Secondly, the Group is subject to many other laws and regulations where the consequences of
non-compliance could have a material effect on amounts or disclosures in the financial statements,
for instance through the imposition of fines or litigation. We identified the following areas as those
most likely to have such an effect: health and safety, data protection laws, anti-bribery and money
laundering, employment law and certain aspects of company legislation recognising the nature of
the Group’s activities. Auditing standards limit the required audit procedures to identify non-compliance
with these laws and regulations to enquiry of the directors and inspection of regulatory and legal
correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or
evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have
detected some material misstatements in the financial statements, even though we have properly
planned and performed our audit in accordance with auditing standards. For example, the further
removed non-compliance with laws and regulations is from the events and transactions reflected
inthe financial statements, the less likely the inherently limited procedures required by auditing
standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these
mayinvolve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
controls. Our audit procedures are designed to detect material misstatement. We are not responsible
for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all
laws and regulations.
7. We have nothing to report on the other information in the Annual Report
The directors are responsible for the other information presented in the Annual Report together
withthe financial statements. Our opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or, except as explicitly stated
below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our
financial statements audit work, the information therein is materially misstated or inconsistent with
the financial statements or our audit knowledge. Based solely on that work we have not identified
material misstatements in the other information.
Strategic report and directors’ report
Based solely on our work on the other information:
• we have not identified material misstatements in the strategic report and the directors’ report;
• in our opinion the information given in those reports for the financial year is consistent with the
financial statements; and
• in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Report on the audit of the financial statements continued
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7. We have nothing to report on the other information in the Annual Report continued
Directors’ remuneration report
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Disclosures of emerging and principal risks and longer-term viability
We are required to perform procedures to identify whether there is a material inconsistency between
the directors’ disclosures in respect of emerging and principal risks and the viability statement, and
the financial statements and our audit knowledge.
Based on those procedures, we have nothing material to add or draw attention to in relation to:
• the directors’ confirmation within the viability statement on page 78 that they have carried out
arobust assessment of the emerging and principal risks facing the Group, including those that
would threaten its business model, future performance, solvency and liquidity;
• the emerging risks and opportunities disclosures describing these risks and how emerging risks
are identified, and explaining how they are being managed and mitigated; and
• the directors’ explanation in the viability statement of how they have assessed the prospects
ofthe Group, over what period they have done so and why they considered that period to be
appropriate, and their statement as to whether they have a reasonable expectation that the
Group will be able to continue in operation and meet its liabilities as they fall due over the
periodof their assessment, including any related disclosures drawing attention to any
necessaryqualifications or assumptions.
We are also required to review the viability statement, set out on page 78 under the Listing Rules.
Based on the above procedures, we have concluded that the above disclosures are materially
consistent with the financial statements and our audit knowledge.
Our work is limited to assessing these matters in the context of only the knowledge acquired during
our financial statements audit. As we cannot predict all future events or conditions and as subsequent
events may result in outcomes that are inconsistent with judgements that were reasonable at the
time they were made, the absence of anything to report on these statements is not a guarantee
astothe Group’s and parent Company’s longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify whether there is a material inconsistency between
the directors’ corporate governance disclosures and the financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the following is materially consistent
with the financial statements and our audit knowledge:
• the directors’ statement that they consider that the annual report and financial statements taken
as a whole is fair, balanced and understandable, and provides the information necessary for
shareholders to assess the Group’s position and performance, business model and strategy;
• the section of the annual report describing the work of the audit committee, including the
significant issues that the audit committee considered in relation to the financial statements,
andhow these issues were addressed; and
• the section of the annual report that describes the review of the effectiveness of the Group’s risk
management and internal control systems.
We are required to review the part of the Corporate Governance Statement relating to the Group’s
compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules
for our review. We have nothing to report in this respect.
8. We have nothing to report on the other matters on which we are required
toreport by exception
Under the Companies Act 2006, we are required to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate
forour audit have not been received from branches not visited by us; or
• the parent Company financial statements and the part of the Directors’ Remuneration Report
tobe audited are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
We have nothing to report in these respects.
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 163, the directors are responsible for: the
preparation of the financial statements including being satisfied that they give a true and fair view;
such internal control as they determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error; assessing the Group and
parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern; and using the going concern basis of accounting unless they either intend to liquidate
the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a
wholeare free from material misstatement, whether due to fraud or error, and to issue our opinion
in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken
onthe basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/
auditorsresponsibilities.
Report on the audit of the financial statements continued
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9. Respective responsibilities continued
Auditor’s responsibilities continued
The Company is required to include these financial statements in an annual financial report
preparedunder Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report
provides no assurance over whether the annual financial report has been prepared in accordance
with those requirements.
10. The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3
ofPart 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state
tothe Company’s members those matters we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s members, as a body,
forouraudit work, for this report, or for the opinions we have formed.
Huw Brown (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
66 Queen Square
Bristol
BS1 4BE
10 March 2025
Report on the audit of the financial statements continued
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Consolidated income statement
For the year ended 31 December 2024
2023
Note
£000
£000
Revenue
3
754,428
7 19 ,15 0
Cost of sales
(38 2 , 49 4)
(3 8 0,0 5 4)
Gross profit
371, 93 4
33 9,0 9 6
Other income
6
1,7 33
1, 4 0 5
Distribution costs
(6, 66 9)
(6 , 3 14)
Administrative expenses
(23 0, 89 6)
(184,630)
Other expenses
6
(2 4 3)
(79 0)
Operating profit
3
13 5 , 8 5 9
14 8 , 76 7
Finance income
8
7, 3 2 3
5 , 3 01
Finance expense
8
(2 , 7 2 1)
(3,4 30)
Profit before tax
9
140 ,46 1
15 0 , 6 3 8
Income tax expense
10
(35,6 63)
(3 7,15 0)
Profit for the year
10 4 ,7 9 8
113 , 4 8 8
Attributable to:
Owners of the parent
103 , 5 8 5
113,13 5
Non-controlling interests
1, 213
353
10 4 ,7 9 8
113 , 4 8 8
Basic earnings per share
19
12 .1p
13. 2p
Diluted earnings per share
19
1 2 .1p
13 . 2p
Operating profit
3
13 5 , 8 5 9
14 8 , 76 7
Adjustments to profit:
Amortisation of acquired intangible assets
5
2,6 04
2 ,11 0
Defined benefit scheme settlement loss
5
18 ,0 0 9
—
Other adjustments
5
2 1,9 3 4
13,598
Adjusted operating profit
2,3
178 , 4 0 6
16 4 , 4 7 5
Adjusted basic earnings per share
2,19
15. 9p
14 . 6p
Adjusted diluted earnings per share
2,19
15 . 8p
14 . 6p
Consolidated statement of comprehensive income
For the year ended 31 December 2024
2023
£000
£000
Profit for the year
10 4 ,7 9 8
113 , 4 8 8
Other comprehensive income
Items that may be subsequently reclassified to the income statement:
Foreign exchange translation differences
(12 , 9 1 5)
(2 0 , 2 7 1)
Effective portion of changes in fair value of cash flow hedges net of tax
(57)
1, 3 9 7
(12 , 9 7 2)
(1 8 , 8 74)
Items that may not be subsequently reclassified to the income statement:
Remeasurement gain/(loss) in pension scheme net of tax
563
(7, 7 2 2)
Expenses and income recognised in other comprehensive income
(12 , 4 0 9)
(26 ,59 6)
Total comprehensive income for the year
92 ,3 89
8 6 , 8 92
Attributable to:
Owners of the parent
9 1 ,1 0 2
86, 609
Non-controlling interests
1, 28 7
28 3
92 ,3 89
8 6 , 8 92
rotork.com Rotork Annual Report 2024173
Consolidated income statement and Consolidated statement of comprehensive income Strategic report Corporate governance Financial statements
Consolidated balance sheet
At 31 December 2024
2024 2023
Note£000£000
Non-current assets
Goodwill
11
22 4 ,7 93
2 31, 7 0 3
Intangible assets
12
31, 4 2 9
3 1,1 2 6
Property, plant and equipment
13
9 0, 302
74 , 411
Derivative financial instruments
24
12 0
20 6
Defined benefit scheme surplus
26
—
9 ,14 4
Deferred tax assets
14
22 ,0 8 4
15 , 4 5 4
Total non-current assets
36 8 ,72 8
3 62, 0 4 4
Current assets
Inventories
15
83,364
8 3,9 6 3
Trade receivables
16
14 9 , 47 9
15 2 , 8 4 2
Current tax
16
4 ,16 4
4 ,18 7
Derivative financial instruments
24
929
673
Other receivables
16
23,839
2 3,701
Cash and cash equivalents
17
149 , 9 8 3
14 6 , 3 7 2
Total current assets
411 , 7 5 8
411 ,7 3 8
Total assets
780, 4 86
7 73 ,78 2
Current liabilities
Interest-bearing loans and borrowings
20
4 , 329
3 ,1 3 1
Trade payables
23
43,838
40,5 85
Employee benefits
21
2 9 ,1 4 6
29 ,75 4
Current tax
23
15 , 9 8 2
12 , 3 8 7
Derivative financial instruments
24
362
538
Other payables
23
49,9 89
42,53 6
Provisions
22
4 ,7 57
4 , 275
Total current liabilities
14 8 , 4 0 3
133,20 6
Non-current liabilities
Interest-bearing loans and borrowings
20
20, 320
8 , 8 26
Employee benefits
21
7, 6 9 9
4 ,19 7
Deferred tax liabilities
14
4 , 037
3, 872
Derivative financial instruments
24
84
15
Provisions
22
1, 4 41
1, 3 7 1
Total non-current liabilities
33, 581
18 , 2 8 1
Total liabilities
181, 9 8 4
151, 4 8 7
Net assets
598 ,5 02
622, 2 95
2024 2023
Note£000£000
Equity
Issued equity capital
18
4 ,232
4,30 6
Share premium
21, 8 4 2
21, 0 0 4
Other reserves
495
13 , 4 6 5
Retained earnings
5 6 9 , 2 11
5 81,813
Equity attributable to the parent
5 9 5,7 8 0
620,5 8 8
Non-controlling interests
2 ,72 2
1, 7 0 7
Total equity
598 ,5 02
622, 2 95
These financial statements were approved by the Board of Directors and authorised for issue on
10 March 2025 and were signed on its behalf by:
K Huynh and B Peacock
Directors
Rotork Annual Report 2024 rotork.com174
Consolidated balance sheet Strategic report Corporate governance Financial statements
Total
IssuedCapitalattributable Non-
equityShareTranslationredemptionHedgingRetainedto owners of controlling
capitalpremiumreservereservereserveearningsthe parent
interests
Total
£000
£000
£000
£000
£000
£000
£000
£000
£000
Balance at 31 December 2022
4,30 4
19 , 9 5 9
31, 3 5 2
1, 7 16
(79 9)
5 3 1, 9 51
58 8,4 83
1, 4 2 4
5 8 9,9 07
Profit for the year
—
—
—
—
—
1 13,135
113 ,13 5
353
113 , 4 8 8
Other comprehensive income
Foreign exchange translation differences
—
—
(20, 201)
—
—
—
(20, 201)
(70)
(2 0 , 2 71)
Effective portion of changes in fair value of cash flow hedges
—
—
—
—
1, 8 41
—
1,8 41
—
1, 8 41
Actuarial loss on defined benefit pension plans
—
—
—
—
—
(9, 87 5)
(9, 875)
—
(9, 8 75)
Tax on other comprehensive (loss)/income
—
—
—
—
(444)
2 ,15 3
1, 7 0 9
—
1,70 9
Total other comprehensive (loss)/income
—
—
(20, 201)
—
1, 3 9 7
(7, 7 2 2)
(26 ,526)
(70)
(26 ,59 6)
Total comprehensive (loss)/income
—
—
(20, 201)
—
1, 3 9 7
1 0 5 , 413
86,609
283
8 6, 8 92
Transactions with owners, recorded directly in equity
Equity settled share-based payment transactions
—
—
—
—
—
2, 2 82
2,28 2
—
2, 28 2
Tax on equity settled share-based payment transactions
—
—
—
—
—
43
43
—
43
Share options exercised by employees
2
1, 0 4 5
—
—
—
—
1, 0 4 7
—
1, 0 4 7
Own ordinary shares acquired
—
—
—
—
—
(2 ,444)
(2 ,444)
—
(2, 444)
Own ordinary shares awarded under share schemes
—
—
—
—
—
3,3 8 8
3,3 8 8
—
3, 3 8 8
Dividends paid on ordinary shares
—
—
—
—
—
(58 , 820)
(5 8, 820)
—
(5 8, 820)
Balance at 31 December 2023
4,306
2 1, 0 0 4
11 , 1 5 1
1, 7 16
59 8
5 81,813
620,5 8 8
1, 7 0 7
6 22, 2 95
Consolidated statement of changes in equity
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024175
Consolidated statement of changes in equity Strategic report Corporate governance Financial statements
Total
IssuedCapitalattributable Non-
equityShareTranslationredemptionHedgingRetainedto owners of controlling
capitalpremiumreservereservereserveearningsthe parent
interests
Total
£000
£000
£000
£000
£000
£000
£000
£000
£000
Balance at 31 December 2023
4,306
2 1, 0 0 4
11 , 1 5 1
1, 7 16
59 8
5 81,813
620,5 8 8
1, 7 0 7
6 22, 2 95
Profit for the year
—
—
—
—
—
103 , 5 8 5
10 3, 58 5
1, 2 13
10 4 ,7 9 8
Other comprehensive income
Foreign exchange translation differences
—
—
(12 , 9 8 9)
—
—
—
(12 , 9 8 9)
74
(12 , 9 15)
Effective portion of changes in fair value of cash flow hedges
—
—
—
—
(76)
—
(76)
—
(76)
Actuarial gain on defined benefit pension plans
—
—
—
—
—
922
922
—
922
Tax on other comprehensive income/(loss)
—
—
—
—
19
(3 59)
(3 4 0)
—
(3 40)
Total other comprehensive (loss)/income
—
—
(12 , 9 8 9)
—
(57)
563
(12 , 4 8 3)
74
(12 , 4 0 9)
Total comprehensive (loss)/income
—
—
(12 , 9 8 9)
—
(57)
10 4 ,14 8
9 1 ,1 0 2
1, 28 7
92 ,3 89
Transactions with owners, recorded directly in equity
Equity settled share-based payment transactions
—
—
—
—
—
4 ,0 46
4,0 46
—
4 ,0 4 6
Tax on equity settled share-based payment transactions
—
—
—
—
—
9
9
—
9
Share options exercised by employees
2
838
—
—
—
—
840
—
840
Own ordinary shares acquired
—
—
—
—
—
(10 , 3 4 8)
(10, 3 4 8)
—
(10 , 3 4 8)
Own ordinary shares awarded under share schemes
—
—
—
—
—
3 ,13 4
3 ,13 4
—
3 ,1 3 4
Share buyback programme
(76)
—
—
76
—
(50 , 326)
(5 0, 326)
—
(50 , 326)
Dividends paid on ordinary shares
—
—
—
—
—
(6 3, 2 65)
(63 , 26 5)
—
(63 , 26 5)
Dividends paid to non-controlling interests
—
—
—
—
—
—
—
(272)
(27 2)
Balance at 31 December 2024
4, 232
21, 8 4 2
(1, 8 3 8)
1,7 92
541
5 6 9 , 2 11
5 9 5 ,78 0
2 ,722
59 8, 502
Detailed explanations for equity capital, the translation reserve, capital redemption reserve and hedging reserve can be seen in note 18.
Consolidated statement of changes in equity
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com176
Consolidated statement of changes in equity continued Strategic report Corporate governance Financial statements
Consolidated statement of cash flows
For the year ended 31 December 2024
2024 2024 2023 2023
Note£000£000£000£000
Cash flows from operating activities
Cash generated from operations
25
212,738
19 7, 8 4 3
Operating cash flow impacts of other adjustments
5
(21, 2 0 0)
(13 , 4 9 6)
Difference between pension charge and cash contribution
(4 ,0 07)
(26,628)
Income taxes paid
(3 8 ,757)
(32, 8 25)
Net cash flows from operating activities
14 8 , 7 74
12 4 , 8 9 4
Cash flows from investing activities
Purchase of property, plant and equipment
(13 , 9 8 3)
(7, 3 0 6)
Purchase of intangible assets
(1, 6 35)
(2, 0 8 9)
Product development costs capitalised
(4 , 3 27)
(2 , 411)
Sale of property, plant and equipment
224
1,8 8 3
Acquisition of business (net of cash acquired)
4
—
(18 , 3 9 9)
Settlement of hedging derivatives
2 ,677
937
Interest received
4 ,0 97
3,927
Net cash flows from investing activities
(12 , 9 47)
(23, 45 8)
Cash flows from financing activities
Issue of ordinary share capital
840
1, 0 4 7
Own ordinary shares acquired
(10 , 3 4 8)
(2 ,444)
Interest paid
(1, 8 8 4)
(93 6)
Repayment of lease liabilities
(4 , 2 17)
(3,6 9 9)
Share buyback programme
(50, 326)
—
Dividends paid on ordinary shares
(63 , 26 5)
(58,8 20)
Dividends paid to non-controlling interests
(272)
—
Net cash flows from financing activities
(12 9 , 47 2)
(6 4, 852)
Net increase in cash and cash equivalents
6 ,355
36,5 8 4
Cash and cash equivalents at 1 January
1 46,37 2
114 , 7 7 0
Effect of exchange rate fluctuations on cash held
(2 ,744)
(4, 9 82)
Cash and cash equivalents at 31 December
17
14 9 , 9 8 3
14 6 , 3 7 2
rotork.com Rotork Annual Report 2024177
Consolidated statement of cash flows Strategic report Corporate governance Financial statements
Except where indicated, values in these notes are in £000.
Rotork plc is a public company limited by shares, registered and domiciled in England and Wales, its
ordinary shares have a commercial companies (equity shares) category listing on the London Stock
Exchange. The consolidated financial statements of the Company for the year ended 31 December 2024
comprise the Company and its subsidiaries (together referred to as the Group). The accounting
policies contained below in note 1 and the disclosures in notes 2 to 33 all relate to the Group
financial statements. The Company balance sheet, accounting policies and applicable notes can
be found following note 33.
1. Accounting policies
The accounting policies applied in the preparation of these consolidated financial statements
are set out below. These policies have been consistently applied to the years presented, unless
otherwise stated.
Basis of preparation
The consolidated financial statements of Rotork plc have been prepared in accordance with
UK-adopted International Accounting Standards.
The consolidated financial statements have been prepared under the historical cost convention
except for defined benefit pension schemes, share-based payments and derivative financial
instruments as referred to in the respective accounting policies below.
New accounting standards and interpretations
A number of amended standards became applicable for the current reporting period. The application
of these amendments has not had any material impact on the disclosures, net assets or results of
the Group.
New standards and interpretations not yet adopted
Further narrow scope amendments have been issued which are mandatory for periods commencing
on or after 1 January 2025. The application of these amendments will not have any material impact
on the disclosures, net assets or results of the Group.
Adjustments to profit
Adjustments to profit are items of income and expense which, because of the nature, size and/or
infrequency of the events giving rise to them, merit separate presentation. These specific items
are presented as a footnote to the income statement to provide greater clarity and an enhanced
understanding of the impact of these items on the Group’s financial performance. In doing so, it also
facilitates greater comparison of the Group’s results with prior periods and assessment of trends in
financial performance. This split is consistent with how business performance is measured internally.
Adjustments to profit items may include but are not restricted to: costs of significant business
restructuring and any associated impairments of intangible or tangible assets, adjustments to the
fair value of acquisition-related items such as contingent consideration, acquired intangible asset
amortisation and other items considered to be significant due to their nature or the expected
infrequency of the events giving rise to them.
Going concern
The directors are satisfied that the Group has sufficient resources to continue in operation for a
period of not less than 12 months from the date of this report. Accordingly, the directors continue
to adopt the going concern basis in preparing the financial statements.
In forming this view, the macroeconomic conditions and the impact of geopolitical instability
on the Group, as discussed in our principal risks on pages 70 to 77, have been considered.
The directors have reviewed: the current financial position of the Group, which has net cash of
£125m, an undrawn committed revolving credit facility of £75m and unused overdraft facilities
of £33m as at the period end; the significant order book, which contains customers spread across
different geographic areas and industries; and the trading and cash flow forecasts for the Group.
A reverse stress test, where the Group’s business model would become unviable, has been performed
and the directors believe there is no reasonably possible scenario that would lead to the conditions
modelled in the reverse stress test.
The directors are satisfied that the Group has adequate resources to continue operating as a going
concern for a period of not less than 12 months from the date of this report, and that no material
uncertainties exist with respect to this assessment. The Group also has a number of mitigating
actions that it can take at short notice to preserve cash, for example reduction in capital programmes,
dividend deferral and other reductions in discretionary spend.
Consolidation
The consolidated financial statements incorporate the financial statements of the Company and its
subsidiaries for the year to 31 December 2024. The financial statements of subsidiaries are included
in the consolidated financial statements from the date that control commences until the date control
ceases. Intra-group balances and any unrealised gains or losses or income and expenses arising from
intra-group transactions are eliminated in preparing the consolidated financial statements.
Foreign currencies
The individual financial statements of each Group company are presented in the currency of the
primary economic environment in which it operates (its functional currency). For the purposes of
the consolidated financial statements, the results and financial position of each Group company
is expressed in sterling, which is the functional currency of the Company, and the presentational
currency for the consolidated financial statements.
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet
date are translated to sterling at the foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the income statement. Non-monetary assets
and liabilities that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated
in foreign currencies that are stated at fair value are translated to sterling at foreign exchange rates
at the dates the values were determined.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com178
Notes to the Group financial statements Strategic report Corporate governance Financial statements
Notes to the Group financial statements Strategic report Corporate governance Financial statements
1. Accounting policies continued
Foreign currencies continued
Assets and liabilities of foreign subsidiaries, including goodwill and fair value adjustments arising
on consolidation, are translated into sterling at rates of exchange ruling at the balance sheet date.
The revenues and expenses of foreign subsidiaries are translated to sterling at the average foreign
exchange rates for the year, this is deemed to be a reasonable approximation of the actual rate ruling
at the transaction date. Differences on exchange arising from the retranslation of the opening net
investment in subsidiaries, and from the translation of the results of those subsidiaries at average
rate, are reported as an item of other comprehensive income and accumulated in the translation
reserve. Any differences that have arisen since 1 January 2004, the date of transition to IFRS, are
presented as a separate component of equity. Translation differences that arose before the date of
transition to IFRS in respect of all foreign entities are not presented as a separate component.
Revenue
Revenue is measured based on the consideration specified in a contract with a customer. The Group
recognises revenue when it transfers control of a product or service to a customer and is shown net
of value-added tax, returns, rebates and discounts and after eliminating sales within the Group.
The transaction price is determined and known at the point of initial sale.
Revenue from the sale of actuators, gearboxes and flow control products is recognised in the income
statement when control of the goods has transferred. The timing of the transfer of control to the
customer varies depending on the nature of the products sold and the individual terms of the contract
of sale. Sales made under internationally accepted trade terms, Incoterms 2020, are recognised as
revenue when the Group has completed the primary duties required to transfer control as defined
by the International Chamber of Commerce Official Rules for the Interpretation of Trade Terms.
This is the agreed point in time when the customer has accepted and has legal title to the goods,
there is a present right to payment for the goods, and they can determine its future use and location.
The Group provides service and support through preventative maintenance contracts, on-site and
workshop service, retrofit solutions and the client support programme. Revenue in respect of on-site
and workshop service and retrofit solutions is recognised on completion of the work and after all
performance obligations have been completed. Revenue in respect of preventative maintenance
contracts and the client support programme is recognised as the services are performed in line with
the contractual terms. The stage of completion is assessed by reference to the transfer of control
over time, which usually corresponds to the contractual agreement with each separate customer and
the costs incurred on the contract to date in comparison with the total forecast costs of the contract.
The directors have assessed that these contracts are satisfied over time given that the customer
simultaneously receives and consumes the benefits provided by the Group. The nature of revenue
recognised on an over time basis is not dissimilar to that recognised on a point in time basis when
considering the factors in IFRS 15, in particular the short timeframe over which the Group’s
performance obligations are satisfied and the low level of uncertainty in those revenue
arrangements, therefore no further disaggregation is considered necessary in note 3.
No revenue is recognised if there are significant uncertainties regarding recovery of the consideration
due, associated completion costs, the possible return of goods or continuing management
involvement with the goods.
The Group has applied the practical expedient in IFRS 15.121 and therefore not disclosed the
information in IFRS 15.120 regarding unsatisfied (or partially unsatisfied) performance obligations
on contracts with a duration of one year or less.
Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date,
which is the date on which control is transferred to the Group
For acquisitions on or after 1 January 2010, the Group measures goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the acquiree; plus
• the fair value of the existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets acquired and
liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in the income
statement. The fair value of the assets and liabilities assumed are provisional for a 12 month period.
Costs related to the acquisition, other than those associated with the issue of debt or equity
securities, are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition date. If the
contingent consideration is classified as equity, it is not remeasured and settlement is accounted for
within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are
recognised in the Consolidated income statement.
Goodwill is stated at cost or deemed cost less any impairment losses. Goodwill is not amortised
but is reviewed for impairment annually. For the purposes of impairment testing, goodwill is
allocated to each of the Group’s cash generating units (CGUs) expected to benefit from the
synergies of the combination. An impairment loss is recognised whenever the carrying value
of an asset or its CGU exceeds its recoverable amount. Impairment losses are recognised in the
Consolidated income statement.
Non-controlling interests
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein.
The interest of non-controlling shareholders is initially measured at the non-controlling interests’
proportion of the share of the fair value of the acquiree’s identifiable net assets. Subsequent to
acquisition, the carrying amount of non-controlling interests is the amount of those interests
at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024179
Notes to the Group financial statements Strategic report Corporate governance Financial statements
1. Accounting policies continued
Intangible assets
i) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in the income statement in the period in which it is
incurred. Development costs incurred after the point at which the commercial and technical feasibility
of the product have been proven, and the decision to complete the development has been taken and
resources made available, are capitalised. The expenditure capitalised includes the cost of materials,
direct labour and an appropriate proportion of overheads. Capitalised development expenditure is
stated at cost less accumulated amortisation and impairment losses. Development expenditure has
an estimated useful life of up to five years and is written off on a straight-line basis.
ii) Software as a Service
For ‘Software as a Service‘ (SaaS) arrangements, the Group capitalises costs only relating to the
configuration and customisation of SaaS arrangements as intangible assets where control of the
software and associated configured and customised elements exists. An element of judgement is
involved with identifying specific elements of programme costs, however, these judgements do not
have a significant impact on the costs to be capitalised. SaaS assets are assessed to have useful lives of
10 to 15 years from the point in time they are available for use and are amortised on a straight-line basis.
iii) Other intangible assets
Other intangible assets that are acquired by the Group as part of a business combination are stated
at cost less accumulated amortisation and impairment losses. The useful life of each of these assets
is assessed based on discussions with the management of the acquired business and takes account
of the differing nature of each of the intangible assets acquired. The assessed useful lives of
intangibles acquired are as follows:
Brands 4 to 10 years
Customer relationships 2 to 8 years
Other 3 to 8 years
Amortisation is charged on a straight-line basis over the estimated useful life of the assets.
Property, plant and equipment
Freehold land is not depreciated. Long leasehold buildings are amortised over 50 years or the
expected useful life of the building where less than 50 years. Other assets are depreciated in equal
annual instalments by reference to their estimated useful lives and residual values at the following
annual rates:
Freehold buildings 2% to 4%
Short leasehold buildings period of lease
Plant and equipment 10% to 33%
Items of property, plant and equipment are stated at cost or deemed cost less accumulated
depreciation and impairment losses.
Leases
i) The Group as a lessee
For any new contracts entered into, the Group considers whether a contract is, or contains a lease.
A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset
(the underlying asset) for a period of time in exchange for consideration’. To apply this definition
the Group assesses whether the contract meets three key evaluations which are whether:
• the contract contains an identified asset, which is either explicitly identified in the contract
or implicitly specified by being identified at the time the asset is made available to the Group;
• the Group has the right to obtain substantially all of the economic benefits from use of the
identified asset throughout the period of use, considering its rights within the defined scope
of the contract; and
• the Group has the right to direct the use of the identified asset throughout the period of use.
The Group assesses whether it has the right to direct ‘how and for what purpose’ the asset is
used throughout the period of use.
ii) Measurement and recognition of leases as a lessee
At the lease commencement date, the Group recognises a right-of-use asset and a lease liability
on the balance sheet. The right-of-use asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any
costs to dismantle and remove the asset at the end of the lease, and any lease payments made in
advance of the lease commencement date (net of any incentives received). Where a lease allows for
an extension to the initial duration, this is recognised only when the extension is reasonably certain
to be exercised.
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
The Group also assesses the right-of-use asset for impairment when such indicators exist.
At the commencement date, the Group measures the lease liability at the present value of the lease
payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is
readily available or the Group’s incremental borrowing rate. Lease payments included in the
measurement of the lease liability are made up of fixed payments, variable payments based on an
index or rate, amounts expected to be payable under a residual value guarantee and payments
arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased
for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in
in-substance fixed payments. When the lease liability is remeasured, the corresponding adjustment
is reflected in the right-of-use asset, or income statement if the right-of-use asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to
these are recognised as an expense in the income statement on a straight-line basis over the lease term.
On the balance sheet, right-of-use assets have been included in property, plant and equipment and
lease liabilities have been included in interest-bearing loans and borrowings.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com180
Notes to the Group financial statements Strategic report Corporate governance Financial statements
1. Accounting policies continued
Interest-bearing loans and borrowings
Obligations for loans and borrowings are recognised when the Group becomes party to the related
contracts and are measured initially at fair value less directly attributable transaction costs. After
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost. Amortised cost is calculated by taking into account any issue costs and any discount or premium
on settlement. Borrowings are classified as current liabilities unless the Group has a right to defer
settlement of the liability for at least 12 months after the balance sheet date.
Taxation
Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised
in the income statement except to the extent that it relates to items recognised directly in equity or
in other comprehensive income, in which case it is recognised in equity or in other comprehensive
income respectively. Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment
to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The following temporary differences are not provided for: the effect of
taxable temporary differences for goodwill not deductible for tax purposes and the initial recognition
of assets or liabilities in a transaction which is not a business combination that affect neither accounting
nor taxable profits. The amount of deferred tax provided is based on the expected manner of realisation
or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively
enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits
will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent
that it is no longer probable that the related tax benefit will be realised. Both deferred and current
tax assets and liabilities are offset when criteria set out in IAS 12.71 and IAS 12.74 are met.
Inventory and work in progress
Inventory and work in progress is valued at the lower of cost and net realisable value. Cost is
calculated either on a ‘first in, first out’ or an average cost basis depending upon its nature and use.
In respect of work in progress and finished goods, cost includes all production overheads and the
attributable proportion of indirect overhead expenses which are required to bring inventories to their
present location and condition. The net realisable value in respect of old and slow moving inventory
is assessed by reference to historic usage patterns and forecast future usage.
Trade and other receivables
Trade and other receivables are initially recognised at fair value and are subsequently held at amortised
cost less any expected credit losses according to IFRS 9.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short term (with an original maturity less than
three months) deposits. Bank overdrafts that are repayable on demand form part of cash and cash
equivalents for the purpose of the consolidated statement of cash flows.
Equity
Equity comprises issued equity capital, share premium, reserves and retained earnings.
When issued equity capital is repurchased, the amount paid, including directly attributable costs,
is recognised as a change in equity. Repurchased shares are debited directly to equity and shown
as a deduction from retained earnings.
Provisions
A provision for warranties is recognised when the underlying products or services are sold. The
provision is based on historical warranty cost data, known issues and management expectations
of future costs.
Employee benefits
i) Pension plans
Where the Group operates a defined benefit pension scheme, contributions are made in accordance
with the schedule of contributions agreed with the Trustees. In respect of all remeasurements that
arise in calculating the Group’s obligation in respect of the plans, these are recognised in other
comprehensive income. The retirement benefit obligation recognised in the consolidated balance
sheet represents the deficit in the Group’s defined benefit pension schemes. Where the interest is
a net expense it is recognised within finance expenses and where it is net income it is recognised
within finance income.
The Group also operates defined contribution pension schemes. The costs for these schemes are
recognised in the income statement as incurred.
ii) Share-based payment transactions
The Rotork Sharesave Plan offers certain employees the opportunity to purchase shares in Rotork plc
at a discounted price compared with the market price at the time of grant. Details of the scheme
are given in note 27. The fair value of the right/option is recognised as an employee expense with
a corresponding increase in equity. The fair value is measured at grant date and spread over the
period between grant and maturity. The right/option reaches maturity when the employee becomes
unconditionally entitled. The fair value of the grant is measured using a Black-Scholes model, taking
into account the terms and conditions upon which the rights were granted. The amount recognised
as an expense is adjusted to reflect the actual number of share options that vest except where
forfeiture is due only to share prices not achieving the threshold for vesting.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024181
Notes to the Group financial statements Strategic report Corporate governance Financial statements
1. Accounting policies continued
Employee benefits continued
ii) Share-based payment transactions continued
The Rotork Long Term Incentive Plan grants shares to executive directors and senior managers.
These awards may vest after a period of three years dependent upon both market and non-market
performance conditions being met. Details of the grants are given in note 27. The fair value of the
award is measured at grant date, using a Monte Carlo simulation model which takes into account the
market based performance criteria, and spread over the vesting period. The fair value of the award
is recognised as an employee expense with a corresponding increase in equity for the share settled
award. The amount recognised as an expense is adjusted to exclude options that do not vest as a
result of non-market performance conditions not being met.
The Global Employee Share Plan (GESP) and the share incentive plan (SIP) are discretionary profit-linked
share schemes based on the prior year profit of the participating Rotork companies. The value of the
award to each employee is based on salary and the length of service. The value of the awards can be
up to £3,600. Shares awarded under these schemes are issued by the trustee at the cost of purchase.
The costs of providing these plans are recognised in the income statement over the period in which
the employee has earned the award.
iii) Long term service leave
The Group’s net obligation in respect of long term service leave is the amount of future benefit
that employees have earned in return for their service in the current and prior periods.
iv) Other employee benefits
The Group offers a number of discretionary bonus schemes to employees around the world.
The costs of these schemes are recognised in the income statement as the criteria are met and
service is undertaken.
Derivative financial instruments
The Group uses forward exchange contracts and swaps to hedge its exposure to foreign exchange
risk arising from operational and financing activities. These are the only derivative financial instruments
used by the Group. In accordance with its Treasury Policy, the Group does not hold or issue contracts
for trading purposes. Forward exchange contracts that do not qualify for hedge accounting are
accounted for as trading instruments.
At inception of designated hedging relationships, the Group documents the risk management
objective and strategy for undertaking the hedge. The Group also documents the economic
relationship between the hedged item and the hedging instrument, including whether the changes
in cash flows of the hedged item and hedging instrument are expected to offset each other.
Forward exchange contracts are recognised initially at fair value. Where a forward exchange contract
is designated as a hedge of the variability in cash flows of a recognised liability or a highly probable
forecasted transaction, the effective part of any gain or loss on the forward contract is recognised
directly in other comprehensive income. Any effective cumulative gain or loss is removed from equity
and recognised in the income statement at the same time as the hedged transaction. The ineffective
part of any gain or loss is recognised in the income statement immediately.
When a hedging instrument or hedge relationship is terminated but the hedged transaction is still
expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in
accordance with the above policy when the transaction occurs. If the hedged transaction is no
longer expected to take place, the cumulative unrealised gain or loss held in equity is recognised
in the income statement immediately.
Dividends
Interim dividends are recorded in the financial statements when they are paid. Final dividends
are recorded in the financial statements in the period in which they are approved by the
Company’s shareholders.
Critical judgements and key estimation uncertainties
Estimates and judgements are regularly evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under
the circumstances.
As described on pages 80 to 84, we have considered the impact of climate change and climate-related
risks and concluded that there is no material impact on the key accounting policies, estimates and
judgements that form the basis of these financial statements.
The Group makes estimates and assumptions concerning the future. The resulting estimates will, by
definition, seldom equal the actual results. The estimates and assumptions that have a risk of causing
a material adjustment to the carrying amount of assets and liabilities in the next financial year are
listed below.
i) Critical accounting judgements
There are no critical accounting judgements requiring evaluation.
ii) Key sources of estimation uncertainty
There are no key sources of estimation uncertainty in the current year. In the prior year, for the defined
benefit pension schemes, management were required to estimate the future rates of inflation, discount
rates and longevity of members, each of which may have a material impact on the defined benefit
obligations that were recorded. Sensitivities to changes in key estimates affecting the pension
schemes’ liabilities are shown in note 26.
2. Alternative performance measures
The Group uses adjusted figures as key performance measures in addition to those reported under
adopted IFRS, as management believe these measures provides stakeholders with additional useful
information to facilitate greater comparison of the Group’s underlying results with prior periods and
assessment of trends in financial performance.
The Group believes alternative performance measures, which are not considered to be a substitute
for, or superior to, IFRS measures, provide stakeholders with additional helpful information on the
performance of the business. These alternative performance measures are consistent with how the
business performance is planned and reported within the internal management reporting to the
Board. Some of these measures are also used for the purpose of setting remuneration targets.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com182
Notes to the Group financial statements Strategic report Corporate governance Financial statements
2. Alternative performance measures continued
The key alternative performance measures that the Group use include adjusted profit measures and
organic constant currency (OCC). Explanations of how they are calculated and reconciled to IFRS
statutory results are set out below.
a. Adjusted operating profit
Adjusted operating profit is the Group’s operating profit excluding the amortisation of acquired
intangible assets and other adjusting items as defined in note 1. Further details on these adjustments
are given in note 5.
b. Adjusted profit before tax
The adjustments in calculating adjusted profit before tax are consistent with those in calculating
adjusted operating profit above.
2023
Profit before tax
140,461
150,638
Adjustments:
Amortisation of acquired intangible assets
2,604
2,110
Defined benefit scheme settlement loss
18,009
—
Gain on disposal of property
—
(723)
Business Transformation costs
17,214
13,097
Other costs
4,720
1,224
Adjusted profit before tax
183,008
166,346
c. Adjusted basic and diluted earnings per share
Adjusted basic earnings per share is calculated using the adjusted net profit attributable to the
ordinary shareholders and dividing it by the weighted average ordinary shares in issue (see note 19).
Adjusted net profit attributable to ordinary shareholders is calculated as follows:
2023
Net profit attributable to ordinary shareholders
103,585
113,4 88
Adjustments:
Amortisation of acquired intangible assets
2,604
2,110
Defined benefit scheme settlement loss
18,009
—
Gain on disposal of property
—
(723)
Business Transformation costs
17,214
13,097
Other costs
4,720
1,224
Tax effect on adjusted items
(10,526)
(3,567)
Adjusted net profit attributable to ordinary shareholders
135,606
125,629
Adjusted diluted earnings per share is calculated by using the adjusted net profit attributable to
ordinary shareholders and dividing it by the weighted average ordinary shares in issue adjusted to
assume conversion of all potentially dilutive ordinary shares (see note 19).
d. Adjusted dividend cover
Dividend cover is calculated as earnings per share divided by dividends per share. Adjusted dividend
cover is calculated as adjusted earnings per share as defined in note 2c above divided by dividends
per share.
e. Total shareholder return
Total shareholder return is the movement in the price of an ordinary share plus dividends during the
year, divided by the opening share price.
f. Return on capital employed
The return on capital employed ratio is used by management to help ensure that capital is
used efficiently.
2023
Adjusted operating profit
178,406
164,475
Capital employed
Net assets
598,502
622,295
Cash and cash equivalents
(149,983)
(146,372)
Interest-bearing loans and borrowings
24,649
11,957
Pension deficit/(surplus) net of deferred tax
2,686
(6,904)
Capital employed
475,854
480,976
Average capital employed
478,415
485,507
Return on capital employed
37.3%
33.9%
Average capital employed is defined as the average of the capital employed at the start and end of
the relevant year.
g. Working capital as a percentage of revenue
Working capital as a percentage of revenue is monitored as control of working capital is key to
achieving our cash generation targets. It is calculated as inventory plus trade receivables, less trade
payables, divided by revenue.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024183
Notes to the Group financial statements Strategic report Corporate governance Financial statements
2. Alternative performance measures continued
h. Organic constant currency (OCC)
OCC results adjust for currency movements and for acquisitions and disposals.
Key headings in the income statement are reconciled to OCC as follows:
Foreign Organic constant
2023
exchange
Acquisitions
currency 2024
Revenue
719,150
(24,110)
2,209
57,179
754,428
Cost of sales
(380,054)
13,463
(895)
(15,008)
(382,494)
Gross profit
339,096
(10,647)
1,314
42,171
371,934
Overheads
(174,621)
3,526
(383)
(22,050)
(193,528)
Adjusted operating profit
164,475
(7,121)
931
20,121
178,406
During the year the calculation of OCC performance was changed from translating reporting period
results at the prior period average exchange rates to translating the prior period results at the
reporting period’s average exchange rates. This change enables greater comparability of results
over multiple previous periods. Adjustments for acquisitions and/or disposals are unchanged –
acquired businesses are not included until owned for more than one year and are then included
on an equal perimeter basis, disposed businesses are excluded entirely.
Applying the previous calculation methodology to the 2024 results does not result in a material
difference in the OCC performance for the year.
i. Cash conversion
Cash conversion is calculated as cash generated from operations (titled adjusted operating cash flow
in prior year) as a percentage of adjusted operating profit. It is monitored to illustrate how efficiently
adjusted operating profits are converted into cash. Cash generated from operations is calculated in
note 25.
2023
Cash generated from operations (note 25)
212,738
197,843
Adjusted operating profit (note 5)
178,406
164,475
Cash conversion
119%
120%
3. Operating segments
The three identifiable operating segments where the financial and operating performance is reviewed
monthly by the chief operating decision maker are as follows:
• Oil & Gas
• Chemical, Process & Industrial
• Water & Power
The Group’s customers are allocated to a segment. Sales to that customer, along with all directly
associated costs of that sale, are reported under the segment to which that customer is allocated.
Where customers sell into multiple segments, a lead segment is identified. Sales to these customers
will generally be allocated to the lead segment unless the sale is of significance and an alternative
segment has been identified, in which case it will be reported under the alternative segment.
Costs not directly attributed to a sale are allocated across the three segments. There are some costs
which are directly attributable to a segment, but most support costs and facility costs are not directly
attributable to a segment and are generally allocated based on split of revenue.
Analysis by operating segment
Chemical,
Process & Water & Corporate
Oil & Gas Industrial Power expenses Group
2024 2024 2024 2024 2024
Revenue from
external customers
355,506
205,028
193,894
—
754,428
Segment result/Adjusted
operating profit*
91,983
52,987
56,359
(22,923)
178,406
Adjusting items
(42,547)
Operating profit
135,859
Net finance income
4,602
Income tax expense
(35,663)
Profit for the year
104,798
Chemical,
Process & Water & Corporate
Oil & Gas Industrial Power expenses Group
2023 2023 2023 2023 2023
Revenue from
external customers
328,391
213,712
177,047
—
719,150
Segment result/Adjusted
operating profit*
83,627
51,253
46,445
(16,850)
164,475
Adjusting items
(15,708)
Operating profit
148,767
Net finance income
1,871
Income tax expense
(37,150)
Profit for the year
113,4 88
* Adjusted operating profit is operating profit before adjusting items (see note 5).
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com184
Notes to the Group financial statements Strategic report Corporate governance Financial statements
3. Operating segments continued
Analysis by operating segment continued
Chemical,
Process & Water &
Oil & Gas Industrial Power Group
2024 2024 2024 2024
Depreciation
6,489
3,782
4,021
14,292
Amortisation of development costs
1,283
748
794
2,825
Chemical,
Process & Water &
Oil & Gas Industrial Power Group
2023 2023 2023 2023
Depreciation
6,180
4,022
3,331
13,533
Amortisation of development costs
774
504
417
1,695
Balance sheets are reviewed by subsidiary and operating segment balance sheets are not prepared.
Therefore no further analysis of operating segments assets and liabilities is presented.
Geographical analysis
Rotork has a worldwide presence in all three operating segments. A full list of Rotork locations can
be found at www.rotork.com.
Revenue by end destination
2023
UK
54,594
48,124
Other EMEA
233,935
212,689
Total EMEA
288,529
260,813
China
112,478
111,28
4
India
49,242
40,925
Other APAC
93,555
105,290
Total APAC
255,275
257,499
USA
143,523
132,840
Other Americas
67,101
67,998
Total Americas
210,624
200,838
754,428
719,150
4. Acquisitions
There were no acquisitions in the current year.
Prior year acquisitions
On 4 August 2023, the Group acquired 100% of the share capital of Hanbay Inc. (‘Hanbay’) for
£21,107,000. Hanbay designs and manufactures precise, miniature electric actuators which offer
a compact profile and high torque design for use with small valves and instrument valves for use
in hazardous and non-hazardous applications, headquartered in Montreal, Canada. The acquisition
expands the Group’s electric actuator offering and is fully consistent with all three pillars of the Growth+
strategy and increases the percentage sales contribution of the Group’s Eco-transition portfolio.
The acquisition had the following effect on the Group’s assets and liabilities as at 31 December 2023
and were not provisional at 31 December 2023.
Fair value
Non-current assets
Property, plant and equipment
13
Intangible assets
9,379
Current assets
Inventory
695
Trade and other receivables
45
Cash
2,708
Current liabilities
Trade and other payables
(96)
Non-current liabilities
Deferred tax liability
(2,485)
Total net identifiable assets
10,259
Goodwill
10,848
Cash movements in respect of acquisitions
Purchase consideration – paid in cash
21,107
Cash held in acquired subsidiary
(2,708)
18,399
The goodwill arising from this acquisition represents the opportunity to grow through expanding the
Group’s electric actuator offering and employee know-how.
The intangible assets identified comprise customer relationships, product design and non-compete
agreements. The intangible assets have been valued by modelling the discounted cash flows attributable
to the respective asset. A discount rate of 18.0% was used. Assumptions regarding future cash flows
are based on a combination of historic performance data and management’s forecasts.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024185
Notes to the Group financial statements Strategic report Corporate governance Financial statements
4. Acquisitions continued
Prior year acquisitions continued
Acquisition costs
Acquisition costs of £384,000 were expensed in administration expenses in the income statement
in the prior year and presented as other adjustments to profit.
5. Adjusting items
Refer to note 1 for details on the adjustments to profit, including an explanation of ‘other adjustments’.
The adjustments to profit included in statutory profit are as follows:
2023
Amortisation of acquired intangible assets
(2,604)
(2,110)
Defined benefit scheme settlement loss
(18,009)
—
Gain on disposal of property
—
723
Business Transformation costs
(17,214)
(13,097)
Other costs
(4,720)
(1,224)
Other adjustments
(21,934)
(13,598)
Total adjusting items
(42,547)
(15,708)
Defined benefit scheme settlement loss
In August 2024 the UK defined benefit pension scheme transacted a second bulk annuity, covering
the benefits of the remaining UK Scheme’s membership (mainly deferred pensioners). Given all
the UK scheme’s liabilities are now insured, this second bulk annuity has been accounted for as
a settlement under IAS 19 and therefore a loss of £18,009,000 has been recognised in the income
statement. Further information can be found in note 26.
Business Transformation costs
During the year £17,214,000 (2023: £13,097,000) of costs were incurred on Business Transformation.
The multi-year transformation includes the implementation and integration of common systems and
processes throughout the Group, including a new cloud-based ERP system. This brings the total
expensed under the programme to £62,134,000. These costs were expensed as they do not meet
the capitalisation criteria under IAS 38. Costs include an allocation of personnel expenses in respect
of employees directly involved in the programme.
Over the next three years we will deploy the Business Transformation programme, including the
new ERP system, across all other Group entities at an estimated further cost of £60m to £65m.
Other costs
£4,720,000 (2023: £1,224,000) of other costs have been incurred, largely in relation to the
relocation of the Shanghai (China) facility to Changshu (China).
Income statement disclosure
All adjustments are included in administrative expenses. The adjustments are taxable or tax deductible
in the country in which the expense is incurred.
Cash flow statement disclosure
Other adjustments have a net operating cash outflow of £21,200,000 (2023: £13,496,000) and a net
investing cash inflow of £nil (2023: £955,000).
6. Other income and expenses
2023
Gain on disposal of property, plant and equipment
161
684
Other
1,572
721
Other income
1,733
1,405
2023
Loss on disposal of property, plant and equipment
(64)
(342)
Other
(179)
(448)
Other expenses
(243)
(790)
7. Personnel expenses
2023
Wages and salaries (including bonus and incentive plans)
164,323
152,679
Social security costs
22,657
21,514
Pension costs (note 26)
8,343
7,392
Share-based payments (note 27)
6,664
5,670
Increase/(decrease) in liability for long term service leave
303
(352)
202,290
186,903
2023
Average monthly number of employees during the year:
UK
972
901
Overseas
2,468
2,390
3,44 0
3,291
Personnel expenses and the average monthly number of employees during the year includes expenses
and employees that are included in Business Transformation costs within Adjusting items (note 5).
In addition to the costs shown above £18,009,000 (2023: £nil) has been recognised in the consolidated
income statement in relation to the settlement loss on the UK defined benefit pension scheme (note 26).
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com186
Notes to the Group financial statements Strategic report Corporate governance Financial statements
8. Finance income and expense
Recognised in the consolidated income statement
2023
Interest income
4,391
4,203
Net interest income on pension scheme liabilities (note 26)
215
352
Foreign exchange gains
2,717
746
Finance income
7,323
5,301
2023
Interest expense
(1,480)
(807)
Interest expense on lease liabilities (note 29)
(761)
(495)
Foreign exchange losses
(480)
(2,128)
Finance expense
(2,721)
(3,430)
Recognised in the consolidated statement of comprehensive income
2023
Effective portion of changes in fair value of cash flow hedges
721
797
Fair value of cash flow hedges transferred to income statement
(797)
1,044
Foreign currency translation differences for foreign operations
(12,915)
(20,271)
(12,991)
(18,430)
Recognised in:
Hedging reserve
(76)
1,841
Translation reserve
(12,915)
(20,271)
(12,991)
(18,430)
9. Profit before tax
Profit before tax is stated after charging/(crediting) the following:
Notes
2024
2023
Depreciation of property, plant and equipment:
– Owned assets
i
9,389
9,385
– Assets held under lease contracts
i
4,903
4,148
Amortisation:
– Acquired intangible assets
iii
2,604
2,110
– Product development costs
iii
1,928
1,409
– Software
iii
789
657
Impairment of development cost assets
iii
897
286
Inventory write downs recognised in the year
ii
5,992
2,310
Product research and development expenditure
iii
9,091
10,468
Exchange differences realised
iv
(851)
1,382
Fees payable to the Group’s auditor and their associates for*:
– For the audit of the Group’s annual accounts
1,443
1,338
– For the audit of the Group’s subsidiaries
257
106
Total audit fees
1,700
1,444
– Audit related assurance services
81
70
Total non-audit fees
81
70
Total fees
1,781
1,514
These costs can be found under the following headings in the consolidated income statement:
i) Both within cost of sales and administrative expenses
ii) Within cost of sales
iii) Within administrative expenses
iv) Within finance income and expenses
* KPMG LLP were appointed as the Group’s auditors on 30 April 2024. Audit fees payable in 2024 are to KPMG LLP and audit
fees payable in 2023 are to the Group’s previous auditor, Deloitte LLP.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024187
Notes to the Group financial statements Strategic report Corporate governance Financial statements
10. Income tax expense
2024
2023
2023
Current tax
UK corporation tax on profits for the year
6,658
4,865
Adjustment in respect of prior years
486
435
7,144
5,300
Overseas tax on profits for the year
37,459
32,091
Adjustment in respect of prior years
(1,940)
146
35,519
32,237
Total current tax
42,663
37,537
Deferred tax
Origination and reversal of other temporary
differences
(6,303)
1,187
Impact of rate change
(71)
(591)
Adjustment in respect of prior years
(626)
(983)
Total deferred tax
(7,000)
(387)
Total tax charge for year
35,663
37,150
Profit before tax
140,461
150,638
Profit before tax multiplied by the blended standard rate
of corporation tax in the UK of 25.0% (2023: 23.5%)
35,115
35,400
Effects of:
Different tax rates on overseas earnings
(177)
2,131
Irrecoverable withholding tax on dividends
3,777
2,421
Permanent differences
695
(118)
Losses not recognised
126
166
Tax incentives
(1,722)
(1,587)
Impact of rate change
(71)
(861)
Adjustments to tax charge in respect of prior years
(2,080)
(402)
Total tax charge for year
35,663
37,150
Effective tax rate
25.4%
24.7%
2024
2023
2023
Adjusted profit before tax (note 2b)
183,008
166,346
Total tax charge for the year
35,663
37,150
Amortisation of acquired intangible assets
549
286
Defined benefit scheme settlement loss
4,502
—
Business Transformation costs
4,357
3,220
Other adjustments (note 5)
1,118
61
Adjusted total tax charge for the year
46,189
40,717
Adjusted effective tax rate
25.2%
24.5%
A tax credit of £9,000 (2023: £43,000) in respect of share-based payments has been recognised
directly in equity in the year.
The effective tax rate for the year is 25.4% (2023: 24.7%). The adjusted effective tax rate is 25.2%
(2023: 24.5%) and is lower than the effective tax rate for the year principally because of the tax
treatment of expenses included in adjusting items.
The adjusted effective tax rate has increased from 24.5% in 2023 to 25.2% in 2024, principally
because of increases in tax rates in jurisdictions in which Rotork operate, including the blended
UK corporation tax rate which increased from 23.5% in 2023 to 25.0% in 2024. The consequent
increase in the adjusted effective tax rate has been partially offset by the recovery of withholding tax
relating to prior year distributions, which is also the predominant driver of the prior year adjustment
to overseas tax above. The Group expects its adjusted effective tax rate to continue to move in line
with the trends in corporate tax rates in the jurisdictions where Rotork operates. The adjusted
effective tax rate will continue to be higher than the standard UK rate due to higher rates of tax
in China, the US, Germany and India.
On 20 June 2023 legislation was substantively enacted in the UK to introduce the OECD’s Pillar Two
global minimum tax rules together with a UK qualified domestic minimum top-up tax, with effect from
1 January 2024. Under the legislation Rotork plc will be required to pay to the UK tax authorities
top-up tax on profits of its subsidiaries that are taxed at an effective tax rate of less than 15 per cent.
The Pillar Two tax charge borne by the Rotork plc does not have a material impact on its current tax expense.
The Group will continue to assess the impact of the Pillar Two income taxes legislation on its future
financial performance.
There is an unrecognised deferred tax liability for temporary differences associated with investments
in subsidiaries. Rotork plc controls the dividend policies of its subsidiaries and the timing of the reversal
of the temporary differences. The value of temporary differences associated with unremitted earnings
of subsidiaries for which deferred tax has not been recognised is £357,208,000 (2023: £320,839,000).
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com188
Notes to the Group financial statements Strategic report Corporate governance Financial statements
11. Goodwill
2023
Cost
At 1 January
253,397
249,791
Acquisition through business combinations (note 4)
—
10,848
Exchange adjustments
(7,032)
(7,242)
At 31 December
246,365
253,397
Provision for impairment
At 1 January
21,694
21,786
Exchange adjustments
(122)
(92)
At 31 December
21,572
21,694
Net book value
224,793
231,703
Cash generating units
Goodwill acquired through business combinations has been allocated to groups of cash generating
units (CGUs) that are expected to benefit from that business combination. For the Group, these are
considered to be the Oil & Gas, Chemical, Process & Industrial and Water & Power divisions. On this
basis, the value in use calculations exceeded the CGU carrying values after applying sensitivity analysis.
Discount rate
Discount rate
Cash generating unit
2024
2023
2023
Oil & Gas
11.5%
13.5%
88,864
92,326
Chemical, Process & Industrial
11.6%
13.7%
119,113
120,799
Water & Power
11.6%
13.7%
16,816
18,578
Total Group
224,793
231,703
Impairment testing
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment.
The annual impairment test was performed at 31 October 2024. The annual impairment testing
considers a range of scenarios which includes costs and risks associated with sustainability.
The key assumptions used in the annual impairment review which are common to all CGUs are
set out below:
i) Discount rates
The discount rates for the significant CGUs presented above are pre-tax rates that reflect current
market assessments of the time value of money and the risks specific to the CGU for which the
future cash flows have not been adjusted. Discount rates are based on estimations that market
participants operating in similar sectors to Rotork would make, using the Group’s economic profile
as a starting point. For each CGU, the risk premium was adjusted on a weighted average basis to
reflect the region in which the CGU carries out the majority of its business, applied a premium based
on the size of the CGU and applied a market participant tax rate in the region the CGU operates.
In calculating the discount rates, consideration was given to exclude risks that were not relevant
or which had already been reflected in the cash flows.
ii) Growth rates
Value in use calculations are used to determine the recoverable amount of goodwill allocated to
each of the CGUs. These calculations use cash flow projections from management forecasts which
are based on the budget and the Group’s three year strategic plan. The three year plan is a bottom
up process which takes place as part of the annual budget process. Once the budget for the next
financial year is finalised, years two and three of the three year plan are prepared by each reporting
entity’s management reflecting their view of the local market, known projects and experience of
past performance and expectations of future changes in the market. The Group annual budget
and the three year plan are reviewed and approved by the Board each year. The compound annual
revenue growth forecast for the Group during years one to three, used within the impairment
models, reflects the growth rates within the budget and three-year plans. Years four and five
of the forecast used within the impairment model are based on Group management judgement
and forecasts taking account for future expected changes in the market. From year six onwards,
a growth rate of 2% (2023: 2%) is used to drive a terminal value.
Sensitivity analysis
The Group has conducted an analysis of the sensitivity of the impairment test to changes in the key
assumptions used to determine the recoverable amount for each of the CGUs to which goodwill
is allocated.
There are no reasonably possible changes in assumptions that would lead to an impairment.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024189
Notes to the Group financial statements Strategic report Corporate governance Financial statements
12. Intangible assets
Product Acquired intangible assets
development Customer
Software costs Brands
relationships
Other
Total
Cost
31 December 2022
11,690
26,238
52,892
119,395
22,243
232,458
Additions
2,089
3,394
—
—
—
5,483
Acquisition through business
combinations
—
—
—
1,938
7,4 41
9,379
Exchange adjustments
—
(106)
(1,703)
(3,484)
(454)
(5,747)
31 December 2023
13,779
29,526
51,189
117,8 49
29,230
241,573
Additions
2,729
4,329
—
—
—
7,058
Exchange adjustments
—
(59)
(963)
(3,081)
(1,147)
(5,250)
31 December 2024
16,508
33,796
50,226
114,768
28,083
243,381
Amortisation
31 December 2022
—
19,930
50,564
119,142
22,243
211,879
Charge for the year
657
1,409
1,186
378
546
4,176
Impairment
—
286
—
—
—
286
Exchange adjustments
—
(105)
(1,672)
(3,537)
(580)
(5,894)
31 December 2023
657
21,520
50,078
115,983
22,209
210,447
Charge for the year
789
1,928
1,111
237
1,256
5,321
Impairment
—
897
—
—
—
897
Exchange adjustments
—
(52)
(963)
(2,957)
(741)
(4,713)
31 December 2024
1,446
24,293
50,226
113,263
22,724
211,952
Net book value
31 December 2023
13,122
8,006
1,111
1,866
7,021
31,126
31 December 2024
15,062
9,503
—
1,505
5,359
31,429
Other acquired intangible assets represent order books, intellectual property, non-compete
agreements and unpatented technology.
The amortisation charge and impairment are recognised within administrative expenses in the
income statement.
Included in the net book value of software are assets in the course of development, which are not
amortised, with a cost of £2,389,000 (2023: £917,000).
13. Property, plant and equipment
Land and Plant and
buildings
equipment
Total
Cost
31 December 2022
85,451
130,178
215,629
Additions
5,715
8,735
14,450
Disposals
(1,704)
(9,525)
(11,229)
Acquisition through business combinations
—
13
13
Exchange adjustments
(5,992)
(5,850)
(11,842)
31 December 2023
83,470
123,551
207,021
Additions
15,486
16,304
31,790
Disposals
(2,835)
(3,689)
(6,524)
Transfers
(2,026)
2,026
—
Exchange adjustments
(4,506)
(6,927)
(11,433)
31 December 2024
89,589
131,265
220,854
Depreciation
31 December 2022
34,066
102,837
136,903
Charge for the year
4,508
9,025
13,533
Disposals
(1,243)
(9,116)
(10,359)
Exchange adjustments
(4,228)
(3,239)
(7,467)
31 December 2023
33,103
99,507
132,610
Charge for the year
5,028
9,264
14,292
Disposals
(2,835)
(3,570)
(6,405)
Exchange adjustments
(3,166)
(6,779)
(9,945)
31 December 2024
32,130
98,422
130,552
Net book value
31 December 2023
50,367
24,044
74,411
31 December 2024
57,459
32,843
90,302
The net book value of land and buildings can be analysed between:
2023
Land
5,474
5,820
Buildings
51,985
44,547
Net book value at 31 December
57,459
50,367
It is the Group’s policy to test assets for impairment whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com190
Notes to the Group financial statements Strategic report Corporate governance Financial statements
13. Property, plant and equipment continued
Included in the net book value of plant and equipment are assets in the course of construction,
which are not depreciated, with a cost of £nil (2023: £1,996,000). Depreciation of these assets
will commence when the assets are ready for their intended use.
Included in the net book value of land and buildings and plant and equipment are leased assets
(see note 29).
14. Deferred tax assets and liabilities
Assets
Liabilities
Net
Assets
Liabilities
Net
2024
2024
2023
2023
2023
Property, plant and equipment
3,803
(1,900)
1,903
1,942
(1,530)
412
Intangible assets
5,933
(5,401)
532
3,111
(4,187)
(1,076)
Employee benefits
5,695
(50)
5,645
3,170
—
3,170
Inventory
6,810
(100)
6,710
5,709
—
5,709
Tax losses
1,707
—
1,707
1,646
—
1,646
Other items
3,315
(1,765)
1,550
3,577
(1,856)
1,721
Net tax assets/(liabilities)
27,263
(9,216)
18,047
19,155
(7,573)
11,582
Set off of tax
(5,179)
5,179
—
(3,701)
3,701
—
22,084
(4,037)
18,047
15,454
(3,872)
11,582
Movements in the net deferred tax balance during the year are as follows:
2023
Balance at 1 January
11,582
11,937
Credited/(charged) to the income statement
6,929
(204)
Credited directly to equity in respect of share-based payments
9
43
Impact of rate change
71
591
(Charged)/credited directly to equity in respect of pension schemes
(359)
2,153
Credited/(charged) directly to hedging reserves in respect of cash flow hedges
19
(445)
Acquired as part of business combinations
—
(2,527)
Exchange differences
(204)
34
Balance at 31 December
18,047
11,582
A deferred tax asset of £22,084,000 (2023: £15,454,000) has been recognised at 31 December 2024.
The directors are of the opinion, based on recent and forecast trading, that the level of profits in the
current and future years make it more likely than not that these assets will be recovered.
A deferred tax asset has not been recognised in relation to capital losses of £7,632,000 (2023: £7,559,000),
due to uncertainty over the offset against future capital profits in the companies concerned. There is
no expiry date in relation to this asset.
15. Inventories
2023
Raw materials and consumables
64,180
67,381
Work in progress
3,135
5,687
Finished goods
16,049
10,895
83,364
83,963
Included in cost of sales was £265,088,000 (2023: £262,201,000) in respect of inventories consumed
in the year.
16. Trade and other receivables
2023
Current assets
Trade receivables
153,501
154,870
Allowance for expected credit loss
(4,022)
(2,028)
Trade receivables – net
149,479
152,842
Current tax
4,164
4,187
Other non-trade receivables
6,406
6,683
Other taxes and social security
8,175
10,323
Prepayments
9,258
6,695
Other receivables
23,839
23,701
17. Cash and cash equivalents
2023
Bank balances
70,290
78,617
Cash in hand
12
12
Short term deposits
79,681
67,743
Cash and cash equivalents in the consolidated statement of cash flows
149,983
146,372
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024191
Notes to the Group financial statements Strategic report Corporate governance Financial statements
18. Capital and reserves
0.5p Ordinary £1 Non- 0.5p Ordinary £1 Non-
shares issued redeemable shares issued redeemable
and fully preference and fully preference
paid up shares paid up shares
2024 2024 2023 2023
At 1 January
4,306
40
4,304
40
Issued under employee share schemes
2
—
2
—
Cancelled following share buyback programme
(76)
—
—
—
At 31 December
4,232
40
4,306
40
Number of shares (000)
846,381
861,201
The ordinary shareholders are entitled to receive dividends as declared and are entitled to vote at
meetings of the Company.
Share issue
The Group received proceeds of £840,000 (2023: £1,047,000) in respect of the 321,000 (2023: 430,000)
ordinary shares issued during the year: £2,000 (2023: £2,000) was credited to share capital and
£838,000 (2023: £1,045,000) to share premium. Further details of the share awards are shown
in note 2.
Own shares held
Within the retained earnings reserve are own shares held in Rotork’s Employee Benefit Trust. The Group
acquired 3,129,000 of its own shares during the year (2023: 773,000). The total amount paid to
acquire the shares was £10,348,000 (2023: £2,444,000), and this has been deducted from shareholders’
equity. During the year, 973,000 (2023: 1,038,000) ordinary shares were released to satisfy share
plan awards. The investment in own shares held is £12,271,000 (2023: £5,056,000) and represents
3,722,000 (2023: 1,566,000) ordinary shares of the Company held in trust for the benefit of directors
and employees for future payments under the Share Incentive Plan and Long Term Incentive Plan.
The dividends on these shares have been waived.
Preference shares
The preference shareholders (see note 20) take priority over the ordinary shareholders when there
is a distribution upon winding up the Company or on a reduction of equity involving a return of
capital. The holders of preference shares are entitled to vote at a general meeting of the Company
if a preference dividend is in arrears for six months or the business of the meeting includes the
consideration of a resolution for winding up the Company or the alteration of the preference
shareholders’ rights.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation
of the financial statements of foreign operations.
Capital redemption reserve
The capital redemption reserve arises when the Company redeems shares wholly out of
distributable profits.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value
of cash flow hedging instruments that are determined to be an effective hedge.
Dividends
The following dividends were paid in the year per qualifying ordinary share:
Payment date
2024
2024
2023
4.65p final dividend for 2023 (final dividend
for 2022: 4.30p)
24 May
39,881
36,926
2.75p interim dividend for 2024
(interim dividend for 2023: 2.55p)
23 September
23,384
21,894
63,265
58,820
After the balance sheet date the following dividends per qualifying ordinary share were proposed by
the directors. The dividends have not been provided for.
2023
Final proposed dividend per qualifying ordinary share
5.0 0p
42,133
—
4.65p
—
40,046
19. Earnings per share
Basic earnings per share
Earnings per share is calculated for both the current and previous years using the profit attributable
to the ordinary shareholders for the year. The earnings per share calculation is based on 853.6m
shares (2023: 859.3m shares) being the weighted average number of ordinary shares in issue
(net of own ordinary shares held) for the year.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com192
Notes to the Group financial statements Strategic report Corporate governance Financial statements
19. Earnings per share continued
Basic earnings per share continued
2023
Net profit attributable to ordinary shareholders
103,585
113,488
Weighted average number of ordinary shares
Issued ordinary shares net of own shares held at 1 January
859,636
858,940
Effect of own shares held
82
198
Effect of share buyback programme
(6,174)
—
Effect of shares issued under Sharesave plans
102
122
Weighted average number of ordinary shares during the year
853,646
859,260
Basic earnings per share
12.1p
13.2p
Adjusted basic earnings per share
Adjusted basic earnings per share is calculated for both the current and previous years using the
profit attributable to the ordinary shareholders for the year after adding back the after-tax impact
of the adjustments. The reconciliation showing how adjusted net profit attributable to ordinary
shareholders is derived is shown in note 2.
2023
Adjusted net profit attributable to ordinary shareholders
135,606
125,629
Weighted average number of ordinary shares during the year
853,646
859,260
Adjusted basic earnings per share
15.9p
14.6p
Diluted earnings per share
Diluted earnings per share is based on the profit for the year attributable to the ordinary shareholders
and 857.0m shares (2023: 862.4m shares). The number of shares is equal to the weighted average
number of ordinary shares in issue (net of own ordinary shares held) adjusted to assume conversion
of all potentially dilutive ordinary shares. The Company has two categories of potentially dilutive
ordinary shares: those share options granted to employees under the Sharesave plan where the
exercise price is less than the average market price of the Company’s ordinary shares during the
year and contingently issuable shares awarded under the Long Term Incentive Plan (LTIP).
2023
Net profit attributable to ordinary shareholders
103,585
113,488
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares for the year
853,646
859,260
Effect of Sharesave options
798
730
Effect of LTIP share awards
2,549
2,398
Weighted average number of ordinary shares (diluted) during the year
856,993
862,388
Diluted earnings per share
12.1p
13.2p
Adjusted diluted earnings per share
2023
Adjusted net profit attributable to ordinary shareholders
135,606
125,629
Weighted average number of ordinary shares (diluted) during the year
856,993
862,388
Adjusted diluted earnings per share
15.8p
14.6p
20. Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group’s interest-bearing loans and
borrowings. For more information about the Group’s exposure to interest rate, liquidity and currency
risks, see note 28.
Notes
2024
2023
Non-current liabilities
Preference shares classified as debt
40
40
Lease liabilities
29
20,280
8,786
20,320
8,826
Current liabilities
Lease liabilities
29
4,329
3,131
4,329
3,131
Total interest-bearing loans and borrowings
24,649
11,957
Terms and debt repayment schedule
The terms and conditions of outstanding bank loans and preference shares were as follows:
Interest Year of
Currency rates
maturity
2023
Non-redeemable preference shares
Sterling
9.5%
—
40
40
40
40
Information on leases and the lease repayment profile are shown in note 29.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024193
Notes to the Group financial statements Strategic report Corporate governance Financial statements
21. Employee benefits
2023
Recognised liability for defined benefit obligations (note 26)
3,618
—
Other pension scheme liabilities
153
673
Employee bonuses
24,773
25,497
Employee indemnity provision
1,884
2,016
Other employee benefits
6,417
5,765
36,845
33,951
Non-current
7,699
4,197
Current
29,146
29,754
36,845
33,951
Defined benefit pension scheme disclosures are detailed in note 26.
22. Provisions
Warranty Other
provision
provisions
Total
Balance at 1 January 2024
4,465
1,181
5,646
Exchange differences
(99)
(1)
(100)
Charge to the income statement
731
752
1,483
Provisions utilised during the year
(559)
(272)
(831)
Balance at 31 December 2024
4,538
1,660
6,198
Maturity at 31 December 2024
Non-current
1,441
—
1,441
Current
3,097
1,660
4,757
4,538
1,660
6,198
Maturity at 31 December 2023
Non-current
1,371
—
1,371
Current
3,094
1,181
4,275
4,465
1,181
5,646
The warranty provision is based on estimates made from historical warranty data associated with
similar products and services. The provision relates mainly to products sold during the last 12 months
and the typical warranty period is 18 months.
The Other provisions are expected to be utilised within the next 12 months.
23. Trade and other payables
2023
Current liabilities
Trade payables
43,838
40,585
Current tax
15,982
12,387
Other taxes and social security
8,801
8,906
Contract liabilities
7,715
9,142
Other non-trade payables and accrued expenses
33,473
24,488
Other payables
49,989
42,536
Contract liabilities are recognised as amounts are received from customers in advance of performance
under contract, these amounts are then recognised as revenue as and when the Group performs
under the contract. Generally there is no significant time delay between receipt from customers and
performance under contract and so these liabilities remain current.
24. Derivative financial instruments
Assets Liabilities Assets Liabilities
2024 2024 2023 2023
Forward foreign exchange contracts – cash flow hedges
1,049
303
879
81
Foreign exchange swaps – cash flow hedges
—
143
—
472
Total
1,049
446
879
553
Less non-current portion:
Forward foreign exchange contracts – cash flow hedges
120
84
206
15
Current portion
929
362
673
538
The full fair value of a hedging derivative is classified as a non-current asset or liability if the
remaining maturity of the hedged item is more than 12 months, and as a current asset or liability,
if the maturity of the hedged item is less than 12 months.
There was no ineffectiveness to be recorded from the use of foreign exchange contracts.
The hedged forecast transactions denominated in foreign currency are expected to occur at various
dates. Gains and losses in respect of these derivatives recognised in the hedging reserve in equity at
31 December 2024 are recognised in the income statement in the period or periods during which the
hedged forecast transaction affects the income statement.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com194
Notes to the Group financial statements Strategic report Corporate governance Financial statements
25. Cash generated from operations
Note
2024
2023
Profit for the year
104,798
113,48
8
Income tax expense
10
35,663
37,150
Finance income
8
(7,323)
(5,301)
Finance expense
8
2,721
3,430
Operating profit
135,859
148,767
Amortisation of acquired intangible assets
2,604
2,110
Defined benefit scheme settlement loss
5
18,009
—
Other adjustments
5
21,934
13,598
Depreciation
13
14,292
13,533
Amortisation and impairment of development costs
12
3,614
2,352
Equity settled share-based payments
27
6,664
5,670
Profit on sale of property, plant and equipment
(109)
(342)
Increase in provisions
922
216
Cash generated from operations before working
capital cash flows
203,789
185,904
(Increase)/decrease in inventories
(1,437)
5,490
Increase in trade and other receivables
(1,064)
(10,488)
Increase in trade and other payables
12,017
1,399
(Decrease)/increase in employee benefits
(567)
15,538
Cash generated from operations
212,738
197,843
26. Pension schemes
i) Defined benefit pension schemes
The Group operates two defined benefit pension arrangements – the Rotork Pension and Life
Assurance Scheme (UK Scheme) and the Rotork Controls Inc. Pension Plan (US Pension Plan).
On retirement, leaving service or death, the Schemes provide benefits based on final salary and
length of service. Whether measured by assets or liabilities, the UK Scheme is more than 85%
of the overall value of the two defined benefit schemes.
The UK Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004.
A valuation of the Scheme is carried out at least once every three years to determine whether
the Statutory Funding Objective is met. As part of the process, the Company must agree with
the trustees of the Scheme the contributions to be paid to address any shortfall against the
Statutory Funding Objective.
The UK Scheme is managed by a Trustee, with directors appointed in part by the Group and part
from elections by members of the Scheme. The Trustee has responsibility for obtaining valuations of
the fund, administering benefit payments and investing the Scheme’s assets. The Trustee delegates
some of these functions to its professional advisers where appropriate. The UK Scheme which was
closed to new entrants in 2003 and was closed to future accrual from 1 April 2018.
In May 2023, the Group paid a one-off contribution to the UK Scheme of £20.0m. This was to help
facilitate the Scheme’s purchase of a bulk annuity with Aviva, covering the UK Scheme’s current
pensioner liabilities. This transaction happened in the second half of June 2023.
In August 2024 the UK Scheme transacted a second bulk annuity with Aviva, covering the benefits of
the remainder of the UK Scheme’s membership (mainly deferred pensioners). With exception of GMP
equalisation, which has still to be implemented and has therefore not been insured yet, and subject
to any issues that emerge from the ongoing data verification work for the two bulk annuities, all the
liabilities of the UK Scheme have now been insured with Aviva. However, 5% of the premium due for
the second bulk annuity has been deferred and can remain so until the data verification work has
been completed – this amount (which was just over £3.0 million at 31 December 2024) has been
included as a liability of the UK Scheme at 31 December 2024.
Given all the UK Scheme’s liabilities are now insured (except for the impact of GMP equalisation and
subject to the results of the data verification work), this second bulk annuity has been accounted for
as a settlement under IAS 19. The settlement calculations have been carried out at 19 August 2024,
which was the risk transfer date for the second transaction. The settlement loss arising at 19 August
2024 has two components. The main component results from the £17.5m difference between the
premium paid by the UK Scheme and the value of the insured liabilities measured on an IAS 19 basis.
In addition, as part of the second bulk annuity negotiations, it was established that Aviva were
unable to administer one aspect of the UK Scheme’s method for revaluing deferred members’
benefits. To enable the bulk annuity to transact, a slightly improved methodology for deferred
revaluation was agreed. This means there is also a past service cost component, equal to £0.5m.
The overall settlement loss is therefore £18.0m.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024195
Notes to the Group financial statements Strategic report Corporate governance Financial statements
26. Pension schemes continued
i) Defined benefit pension schemes continued
The US Pension Plan is subject to the ERISA funding requirements. A valuation of the Plan is carried
out annually to ensure the Funding Objective is met under ERISA by contributing at least the
Minimum Required Contribution. As part of this process the Company must contribute to the Plan
enough contributions to ensure at least the Minimum Contribution is deposited in the Trust to pay
for the accrual of benefits. The US Pension plan, which was closed to new entrants in 2009, was
closed to future accrual on 31 December 2018.
The impact of the requirement to equalise benefits of men and women for unequal GMPs was
previously estimated to be a 0.3% addition to the liabilities of the UK Scheme. In the context of the
second bulk annuity, the UK Scheme’s advisers made an updated estimate of the eventual impact
of GMP equalisation on the two buy-in contracts. The corresponding IAS 19 value of this revised
estimate is marginally higher than the previous allowance within the UK Scheme’s IAS 19 liabilities
and has been allowed for within the 2024 year-end valuation. The precise impact of GMP
equalisation is unlikely to be clear for some time.
The ongoing data verification work for the first buy-in, although not yet complete, has led the
UK Scheme’s advisers to estimate that there may be a small additional premium due as part of
the eventual true-up. This has been reflected at the 2024 year-end.
In June 2023, the High Court handed down a decision in the case of Virgin Media Limited v
NTL Pension Trustees II Limited and others relating to the validity of certain historical pension
changes. This case may have implications for other defined benefit schemes in the UK. In July 2024,
the appeal against the original decision was dismissed. The Group obtained legal advice that there is
no obligation for the Trustee to investigate historical changes made and concluded that the scheme
will be administered on the same basis as before the decision. Therefore, this has had no impact on
the value of the defined benefit obligations.
Movements in the present value of defined benefit obligations
2023
Liabilities at 1 January
146,222
144,381
Interest cost
6,637
6,704
Benefits paid
(7,782)
(7,414)
Actuarial (gain)/loss
(15,771)
3,558
Past service cost
519
—
Currency loss/(gain)
291
(1,007)
Liabilities at 31 December
130,116
146,222
Movements in fair value of plan assets
2023
Assets at 1 January
155,366
136,375
Interest income on plan assets
6,852
7,056
Employer contributions
4,129
26,475
Benefits paid
(7,782)
(7,414)
Return on plan assets, excluding interest income on plan assets
(14,849)
(6,317)
Settlement loss on assets
(17,490)
—
Currency gain/(loss)
272
(809)
Assets at 31 December
126,498
155,366
Expense recognised in the income statement
2023
Net interest income
(215)
(352)
Past service cost
519
—
Settlement loss on assets
17,490
—
17,794
(352)
This expense is recognised in the following line items in the income statement
2023
Net finance expense
(215)
(352)
Administrative expenses
18,009
—
17,794
(352)
Remeasurements over the year
2023
Experience adjustments on plan assets
(14,849)
(6,317)
Experience adjustments on plan liabilities
(336)
(2,681)
Actuarial gain/(loss) from changes to financial assumptions
15,901
(3,180)
Actuarial gain from changes to demographic assumptions
207
2,303
Experience adjustments on currency
(20)
198
903
(9,677)
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com196
Notes to the Group financial statements Strategic report Corporate governance Financial statements
26. Pension schemes continued
i) Defined benefit pension schemes continued
Reconciliation of net defined benefit obligation
2023
Net defined benefit obligation at the beginning of the year
(9,144)
8,006
Net financing expense
(215)
(352)
Past service cost
519
—
Settlement loss on assets
17,490
—
Remeasurements over the year
(903)
9,677
Employer contributions
(4,129)
(26,475)
3,618
(9,144)
Liability for defined benefit obligations
The principal actuarial assumptions at 31 December 2024 (expressed as weighted averages):
UK scheme US scheme Weighted average
(% per annum) (% per annum) (% per annum)
2023
2024
2023
2024
2023
Discount rate
5.50
4.55
5.44
4.77
5.49
4.58
Rate of increase in salaries
n/a
n/a
n/a
n/a
n/a
n/a
Rate of increase in pensions
(post May 2000)
3.00
2.90
0.00
0.00
2.59
2.50
Rate of increase in pensions
(pre May 2000)
4.60
4.60
0.00
0.00
3.97
4.00
UK rate of inflation
3.10
3.00
n/a
n/a
3.10
3.00
In the UK the Retail Price Index is used as the rate of inflation as it is a requirement of the
UK Scheme’s rules.
The split of the Schemes’ assets were as follows:
Fair value Fair value
2024 2023
Equities
—
7,825
Property
433
839
Multi-asset credit (quoted)
(15)
3,770
LDI/absolute return bonds/cash
1,412
53,690
Value of Aviva bulk annuities
111,517
74,049
Balancing premium for second bulk annuity
(3,025)
—
US deposit administration contract
16,176
15,193
Total
126,498
155,366
Actual return on Schemes’ assets (excluding settlement loss)
(7,997)
739
The UK Scheme is now primarily invested in the two Aviva bulk annuities, which have insured all
its liabilities (except for the impact of GMP equalisation and subject to the results of the data
verification work).
The only change made to the UK Scheme’s demographic assumptions at the 2024 year-end is that
future improvements in mortality are now based on the CMI_2023 core projection model, which
places a 15% weighting on 2022’s and 2023’s mortality experience (2023: CMI_2022).
By way of example the respective mortality tables indicate the following life expectancy for UK
Scheme members:
2024
Life expectancy at age 65
2023
Life expectancy at age 65
Current age
Male
Female
Male
Female
65
22.7
23.5
22.7
23.4
45
24.0
24.9
24.0
24.8
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024197
Notes to the Group financial statements Strategic report Corporate governance Financial statements
26. Pension schemes continued
i) Defined benefit pension schemes continued
Sensitivity analysis on the Schemes’ liabilities
Approximate effect on liabilities
Adjustments to assumptions
2023
Discount rate
Plus 1.0% p.a.
(16,000)
(20,700)
Minus 1.0% p.a.
18,600
24,500
Inflation
Plus 0.5% p.a.
5,600
6,700
Minus 0.5% p.a.
(5,300)
(6,400)
Life expectancy
Increase of one year in assumed life expectancy
5,000
5,100
The sensitivities disclosed are indicative of how reasonably possible changes would impact the
liabilities recognised. Further movements in assumptions would result in higher variances accordingly.
They are approximate and only show the likely effect of an assumption being adjusted whilst all
other assumptions remain the same. They focus solely on the liability impact and do not reflect likely
matching movements in the assets.
The sensitivity analysis was determined using the same method as per the calculation of liabilities
for the balance sheet disclosures, but using assumptions adjusted as detailed above.
Effect of the Schemes on the Group’s future cash flows
The Group is required to agree a Schedule of Contributions with the Trustee of the UK Scheme following
a valuation which must be carried out at least once every three years. Following the valuation of the
UK Scheme as at 31 March 2022, the Group estimates that cash contributions to the Group’s defined
benefit pension schemes during 2025 will be nil (2024: £3,667,000), although there will be a need
for further contributions when the balancing payment for the second bulk annuity becomes due.
The next triennial valuation is due with an effective date of 31 March 2025.
The weighted average duration of the defined benefit obligation for the UK Scheme is approximately
15 years.
ii) Other pension plans
The Group makes a contribution to a number of defined contribution plans around the world to
provide benefits for employees upon retirement. Total expense relating to these plans in the year
was £8,343,000 (2023: £7,392,000).
27. Share-based payments
The Group awards shares under the LTIP, the Save As You Earn scheme (Sharesave plan), the Global
Employee Share Plan (GESP) and the Share Incentive Plan (SIP). The equity settled share-based
payment expense included in the income statement for each of the plans can be analysed as follows:
2023
Sharesave plan (a)
604
539
Long Term Incentive Plan (b)
3,193
2,533
GESP/SIP profit-linked share scheme (c)
2,867
2,598
Total expense recognised as employee costs (note 7)
6,664
5,670
Volatility assumptions for equity-based payments
The expected volatility of all equity compensation benefits is based on the historic volatility (calculated
based on the weighted average remaining life of each benefit), adjusted for any expected changes
to future volatility due to publicly available information.
a) Sharesave plan
UK employees are invited to join the Sharesave plan when an offer is made each year. All the offers to
date were made at a 20% discount to market price at the time. There are no performance criteria for
the Sharesave plan. Employees are given the option of joining either the 3 year or the 5 year scheme.
3 year scheme
5 year scheme
2023
2024
2023
Grant date
4 October
6 October
4 October
6 October
Share price at grant date
330p
304p
330p
304p
Exercise price
254p
243p
254p
243p
Shares granted under scheme
422,120
407,482
170,027
115,093
Vesting period
3 years
3 years
5 years
5 years
Expected volatility
29.4%
31.1%
29.4%
31.1%
Risk free rate
3.88%
4.48%
3.87%
4.40%
Expected dividends expressed as a dividend yield
2.24%
2.26%
2.24%
2.26%
Probability of ceasing employment before vesting
2.00%
2.00%
2.00%
2.00%
Fair value
105p
97p
117p
109p
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com198
Notes to the Group financial statements Strategic report Corporate governance Financial statements
27. Share-based payments continued
Volatility assumptions for equity-based payments continued
a) Sharesave plan continued
Movements in the number of share options outstanding and their weighted average prices are as follows:
2023
Average option Average option
price per share
Options
price per share
Options
At 1 January
221p
2,460,589
220p
2,538,426
Granted
254p
592,147
243p
522,575
Exercised
261p
(321,324)
243p
(429,946)
Forfeited
226p
(207,306)
229p
(170,466)
At 31 December
223p
2,524,106
221p
2,460,589
Of the 2,524,106 outstanding options (2023: 2,460,589), 85,540 are exercisable (2023: 120,220).
The Group received proceeds of £840,000 in respect of the 321,324 options exercised during the
year: £2,000 was credited to share capital and £838,000 to share premium. The weighted average
share price at date of exercise was 326p (2023: 310p).
The weighted average remaining life of 1,680,977 (2023: 1,640,383) awards outstanding under the
3 year plan is 1.7 years. The weighted average remaining life of 843,129 (2023: 820,206) awards
outstanding under the 5 year plan is 3.2 years.
b) Long Term Incentive Plan
The LTIP is a performance share plan under which shares are conditionally allocated to selected
members of senior management at the discretion of the Remuneration Committee on an annual
basis. Following shareholder approval of the LTIP at the Company’s AGM on 18 May 2000, awards
of shares are made to executive directors and senior managers each year.
2019 LTIP plan
Following shareholder approval of the 2019 LTIP plan at the Company’s AGM on 26 April 2019,
awards of shares have been made annually to executive and senior managers. Previously, a third
of these awards vested under a TSR performance condition, a third under an EPS performance
condition and a third under a Return on Invested Capital (ROIC) performance condition. For the 2023
awards onwards, 30% of these awards vest under a TSR performance condition, 30% under an EPS
performance condition, 30% under a Return on Invested Capital (ROIC) performance condition and
10% under an ESG performance condition.
TSR measures the change in value of a share and reinvested dividends over the period of measurement.
The actual number of shares transferred will be determined by the number of shares initially allocated
multiplied by a vesting percentage. The actual number of shares transferred will be 25% at the 50th
percentile rising to 100% at the 75th percentile.
The EPS performance condition is satisfied with 25% (15% for pre 2023 awards) of the awards
vesting if the EPS growth is 9% over the vesting period up to a maximum of 100% vesting if EPS
growth exceeds 35%.
Vesting of awards under the ROIC condition is determined by calculating the growth in ROIC, on a
cumulative basis, over the performance period. For the 2022, 2023 and 2024 awards, the awards will
vest by comparing the average ROIC over the performance period against a set of pre-defined targets.
The ESG performance condition is satisfied with an absolute reduction in scope 1 and 2 CO
2
emissions
with targets aligned to the accredited, published 2030 SBTI targets.
The performance period for the 2021 awards ended on 31 December 2023. Messrs. PricewaterhouseCoopers
LLP as independent actuaries certified to the Remuneration Committee that there was a 13.8%
vesting of this award as the Group’s EPS growth was 17.1% over the performance period. The TSR
and ROIC elements of the scheme did not vest as the performance criteria were not met.
The performance period for the 2022 awards ended on 31 December 2024. Messrs. PricewaterhouseCoopers
LLP as independent actuaries certified to the Remuneration Committee that there was a 55.8% vesting of
this award as the Group’s EPS growth was 41.2% over the performance period and the Group’s growth in
economic profit was 48.2%. The TSR element of the scheme did not vest as the performance criteria were
not met.
2023
Grant date
21 March
24 March
Share price at grant date
333p
307p
Shares granted under scheme
1,651,166
1,543,337
Vesting period
3 years
3 years
Expected volatility
26.0%
28.4%
Risk free rate
4.0%
3.3%
Expected dividends expressed as a dividend yield
0.0%
0.0%
Probability of ceasing employment before vesting
5% p.a.
5% p.a.
Fair value of awards under TSR performance conditions
170p
190p
Fair value of awards under EPS and ROIC performance conditions
333p
307p
Outstanding Granted Vested Outstanding
at start of year during year
during year
Lapsed
at end of year
2021
Award
810,872
—
(110,5 45)
(700,327)
—
2022
Award
1,211,676
—
—
(94,599)
1,117,077
2023
Award
1,543,337
—
—
(153,292)
1,390,045
2024
Award
—
1,651,166
—
(34,876)
1,616,290
3,565,885
1,651,166
(110,545)
(983,094)
4,123,412
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024199
Notes to the Group financial statements Strategic report Corporate governance Financial statements
27. Share-based payments continued
2019 LTIP plan continued
The weighted average remaining life of awards outstanding is one year.
c) Global Employee Share plan (GESP) and the Share Incentive Plan (SIP)
These discretionary profit-linked shares schemes are annual schemes based on the prior year profit
of participating Rotork companies. The value of the award to each employee is based on salary and
length of service and can be up to £3,600.
28. Financial instruments
Financial risk and treasury policies
The Group Treasury department maintains liquidity, identifies and manages foreign exchange risk,
manages relations with the Group’s bankers and provides a treasury service to the Group’s businesses.
Treasury dealings such as investments, borrowings and foreign exchange are conducted only to
support underlying business transactions.
The Group has clearly defined policies for the management of credit, foreign exchange and interest
rate risk. The Group Treasury department is not a profit centre and, therefore, does not undertake
speculative foreign exchange dealings for which there is no underlying exposure. Exposures resulting
from sales and purchases in foreign currency are matched where possible and the net exposure may
be hedged.
a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s
receivables from customers and cash on deposit with financial institutions.
Management has a credit policy in place and exposure to credit risk is both monitored on an ongoing
basis and reduced through the use of credit insurance covering over 80% of trade receivables at any
time. Credit evaluations are carried out on all customers requiring credit above a certain threshold,
with varying approval levels set around this depending on the value of the sale. At the balance sheet
date there were no significant concentrations of credit risk.
Goods are sold subject to retention of title clauses, so that in the event of non–payment the Group
may have a secured claim.
The Group maintains an allowance for impairment in respect of non–insured receivables where
recoverability is considered doubtful.
The Group Treasury Committee meets regularly and reviews the credit risk associated with
institutions that hold a material cash balance. As well as credit ratings, counterparties and
instruments are assessed for credit default swap pricing and liquidity of funds.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk at the reporting date was:
Carrying amount
2023
Trade receivables
149,479
152,842
Cash and cash equivalents
149,983
146,372
299,462
299,214
The maximum exposure to credit risk for trade receivables at the reporting date by currency was:
Carrying amount
2023
Sterling
18,738
23,613
US dollar
39,076
30,291
Euro
41,558
46,378
Other
50,107
52,560
149,479
152,842
Allowance for expected credit loss against trade receivables
The following table shows the expected credit loss (ECL) that has been recognised for trade receivables:
Gross Provision Gross Provision
2024 2024 2023 2023
Not past due
122,311
—
118,229
—
Past due 0–30 days
19,261
—
23,077
(32)
Past due 31–60 days
5,339
(121)
6,684
(96)
Past due 61–90 days
1,800
(67)
2,084
(106)
Past due more than 91 days
4,791
(3,835)
4,796
(1,794)
153,502
(4,023)
154,870
(2,028)
b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall
due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Group’s reputation.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com200
Notes to the Group financial statements Strategic report Corporate governance Financial statements
28. Financial instruments continued
Financial risk and treasury policies continued
b) Liquidity risk continued
The Group is highly cash generative and uses monthly cash flow forecasts to monitor cash
requirements and to optimise its return on investments. Typically the Group ensures that it has
sufficient cash on hand to meet foreseeable operational expenses; it also maintains a £5,000,000
uncommitted undrawn overdraft facility (2023: £5,000,000) on which interest would be payable
at base rate plus 2.0% (2023: 2.0%), a €5,000,000 uncommitted undrawn overdraft facility
(2023: €5,000,000) on which interest would be payable at base rate plus 1.1% (2023: 1.1%),
a $5,200,000 uncommitted undrawn overdraft facility (2023: nil) on which interest would be
payable at the bank’s cost of funds plus 1.1% and a CNY 40,000,000 (2023: nil) uncommitted
undrawn overdraft facility on which interest would be payable the bank’s cost of funds plus
1.1%. There are additional facilities of INR 750m, payable at base rate plus 2% (2023: 2%) and
USD $10m, payable at base rate plus 1.25% (2023: 1.25%) that are used to manage local working
capital requirements and treated as overdrafts. They remain undrawn.
The Group holds a £75,000,000 committed Revolving Credit Facility which matures in December 2027.
At 31 December 2024 this committed facility was fully undrawn, resulting in £75,000,000 being available.
The following are the contractual maturities of financial liabilities, including interest payments
and excluding the impact of netting agreements:
Analysis of contractual cash flow maturities
Carrying Contractual Less than More than
31 December 2024 amount cash flows
12 months
1–2 years
2–5 years
5 years
Lease liabilities
24,609
28,795
5,212
4,613
6,846
12,124
Trade and other payables
and accrued expenses
77,311
77,311
77,311
—
—
—
Foreign exchange contracts
446
446
362
84
—
—
Non-redeemable preference shares
40
40
—
—
—
40
102,406
106,592
82,885
4,697
6,846
12,164
Analysis of contractual cash flow maturities
Carrying Contractual Less than More than
31 December 2023 amount cash flows
12 months
1–2 years
2–5 years
5 years
Lease liabilities
11,917
13,220
3,604
3,134
5,367
1,115
Trade and other payables
and accrued expenses
65,073
65,073
65,073
—
—
—
Foreign exchange contracts
553
553
538
15
—
—
Non-redeemable preference shares
40
40
—
—
—
40
77,583
78,886
69,215
3,149
5,367
1,155
Where a counterparty experiences credit stress the foreign exchange contracts may be settled on a
net basis but standard practice is to settle on a gross basis and the undiscounted gross outflow in
respect of these contracts is £88,700,000 (2023: £102,500,000) and the gross inflow is £89,300,000
(2023: £102,800,000).
c) Market risk
Market risk arises from changes in market prices, such as currency rates and interest rates, and
may affect the Group’s results. The objective of market risk management is to manage and control
market risk within suitable parameters.
i) Currency risk
The Group is exposed to foreign currency risk on sales and purchases that are denominated in a
currency other than the business unit’s functional currency. The currencies primarily giving rise to this
risk are the US dollar and related currencies and the euro. The Group hedges up to 75% of forecast
US dollar or euro foreign currency exposures using forward exchange contracts. In respect of other
non-sterling monetary assets and liabilities the exposures may also be hedged up to 75% where this
is deemed appropriate.
As part of the Group’s cash management some of the overseas subsidiaries have loan and deposit
balances where their intra-group counterparty is in the UK. The balances are typically in local
currency for the subsidiary so the UK holds a foreign currency current asset or liability which is
usually hedged through the use of foreign exchange swaps. At the balance sheet date only the
‘forward’ part of the swap remains and this is designated as a cash flow hedge to match the
currency exposure of the intercompany loan asset.
The Group classifies its forward exchange contracts (that hedge both the forecast sale and purchase
transactions and the intercompany loan and deposit balances) as cash flow hedges and states them
at fair value. The net fair value of foreign exchange contracts used as hedges at 31 December 2024
was a £603,000 asset (2023: £326,000 asset) comprising an asset of £1,049,000 (2023: £879,000)
and a liability of £446,000 (2023: £553,000). Forward exchange contracts in place at 31 December
2024 mature in 2025 and 2026.
Changes in the fair value of foreign exchange contracts that economically hedge monetary assets
and liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in
the income statement.
Sensitivity analysis
It is estimated that, with all other variables held equal (in particular other exchange rates), a general
change of one cent in the value of euro against sterling would have had an impact on the Group’s
operating profit for the year ended 31 December 2024 of £250,000 (2023: £150,000) and a change
of one cent in the value of US dollar against sterling would have had an impact on the Group’s
operating profit for the year ended 31 December 2024 of £650,000 (2023: £500,000). Larger
changes would have a linear impact on operating profit. The method of estimation, which has been
applied consistently, involves assessing the transaction impact of US dollar and euro cash flows and
the translation impact of US dollar and euro profits.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024201
Notes to the Group financial statements Strategic report Corporate governance Financial statements
28. Financial instruments continued
Financial risk and treasury policies continued
c) Market risk continued
i) Currency risk continued
Sensitivity analysis continued
The following significant exchange rates applied during the year:
Average rate
Closing rate
2023
2024
2023
US dollar
1.28
1.24
1.25
1.27
Euro
1.18
1.15
1.21
1.15
ii) Interest rate risk
The Group does not undertake any hedging activity in this area.
All cash deposits are made at prevailing interest rates and the majority is available with same day
notice, though deposits are sometimes made with a maturity of no more than three months. The
main element of interest rate risk concerns sterling, US dollar, euro and Renminbi deposits, all of
which are on a floating rate basis.
The interest rate profile of the Group’s financial liabilities (excluding leases) at 31 December was
as follows:
2023
Fixed rate financial liabilities
40
40
Floating rate financial liabilities
—
—
40
40
The fixed rate financial liabilities comprise preference shares.
The weighted average interest rate of the fixed and floating rate financial liabilities are 9.5%
(2023: 9.5%) and nil (2023: nil respectively.
The maturity profile of the Group’s fixed rate financial liabilities (excluding leases) at 31 December
was as follows:
2023
In more than five years
40
40
40
40
d) Capital risk management
The primary objective of the Group’s capital management is to ensure it maintains sufficient capital
in order to support its business and maximise shareholder value. The Group has an asset-light business
model and uses cash generated from operations to either invest organically or by acquisition. The Group
manages its capital structure and makes adjustments to it in light of changes in economic and
market conditions. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders or issue new shares.
The Group defines capital as net cash/(debt) plus equity attributable to shareholders. There are no
externally imposed restrictions on the Group’s capital structure. The reconciliation of the Group’s
definition of capital employed is shown in note 2. The Group’s reconciliation of net debt to net cash
is shown below.
Notes
2023
Total borrowings including lease liabilities
20
(24,649)
(11,957)
Total cash and cash equivalents
17
149,983
146,372
Group net cash
125,334
134,415
Reconciliation of changes in assets and liabilities arising
from financing activities
Repayment of lease liabilities
4,217
3,699
Increase in lease liabilities
(16,924)
(7,069)
Effect of exchange rate fluctuations
15
249
Changes in financial liabilities arising from financing activities
(12,692)
(3,121)
Net increase in cash and cash equivalents
3,611
31,602
Net (decrease)/increase in net cash
(9,081)
28,481
Net cash at start of year
134,415
105,934
Net cash at end of year
125,334
134,415
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com202
Notes to the Group financial statements Strategic report Corporate governance Financial statements
28. Financial instruments continued
Financial risk and treasury policies continued
e) Fair values
The fair values of financial assets and liabilities, together with the carrying amounts shown in the
balance sheet, were as follows:
Carrying Carrying
amount Fair value amount Fair value
2024 2024 2023 2023
Loans and receivables
Trade receivables
149,479
149,479
152,842
152,842
Financial assets
Cash and cash equivalents
149,983
149,983
146,372
146,372
Designated cash flow hedges
Foreign exchange contracts:
– Financial assets
1,049
1,049
879
879
– Financial liabilities
(446)
(446)
(553)
(553)
Financial liabilities at amortised cost
Trade and other payables and
accrued expenses
(77,311)
(77,311)
(65,073)
(65,073)
Preference shares
(40)
(40)
(40)
(40)
Lease liabilities
(24,609)
(24,609)
(11,917)
(11,917)
198,105
198,105
222,510
222,510
Fair value hierarchy
The fair value of the Group’s outstanding derivative financial assets and liabilities consisted of foreign
exchange contracts and swaps and were estimated using year end spot rates adjusted for the forward
points to the appropriate value dates, and gains and losses are taken to other comprehensive income,
and estimated using market foreign exchange rates at the balance sheet date. All derivative financial
instruments are categorised as Level 2 of the fair value hierarchy.
The other financial instruments are classified as Level 3 in the fair value hierarchy and are valued as follows.
Cash and cash equivalents, trade and other payables, and trade receivables are carried at their
book values as this approximates to their fair value due to the short-term nature of the instruments.
Bank loans and lease liabilities are carried at amortised cost as it is the intention that they will not
be repaid prior to maturity, where this option exists. The fair values are evaluated by the Group
based on parameters such as interest rates and relevant credit spreads.
29. Leases
The Group leases many assets including land and buildings, vehicles, machinery and IT equipment.
Information about leases for which the Group is a lessee is presented below.
Right-of-use assets
The right-of-use assets are disclosed as non-current assets and are part of the property, plant and
equipment balance of £90,302,000 at 31 December 2024.
Land and Plant and
buildings
equipment
Total
Balance at 1 January
9,230
2,216
11,446
Depreciation charge for the year
(3,717)
(1,186)
(4,903)
Additions to right-of-use assets
15,425
1,499
16,924
Right-of-use assets disposed of
—
(4)
(4)
Foreign exchange differences
(120)
434
314
Balance at 31 December
20,818
2,959
23,777
Lease liabilities
2023
Maturity analysis – contractual undiscounted cash flows
Less than one year
5,212
3,604
One to five years
11,459
8,501
More than 5 years
12,124
1,115
Total undiscounted lease liability at 31 December
28,795
13,220
Interest cost associated with future periods
(4,186)
(1,303)
Lease liabilities included in Consolidated balance sheet at 31 December
24,609
11,917
Current
4,329
3,131
Non-current
20,280
8,786
Amounts recognised in the income statement
The Group has elected not to recognise a lease liability for short term leases (leases with an expected
term of 12 months or less) or for leases of low value assets. Payments made under such leases are
expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to
be recognised as lease liabilities and are expensed as incurred.
For the year ended 31 December 2024
rotork.com Rotork Annual Report 2024203
Notes to the Group financial statements Strategic report Corporate governance Financial statements
29. Leases continued
Amounts recognised in the income statement continued
2023
Leases under IFRS 16
Interest on lease liabilities
761
495
Expenses relating to short-term leases and leases of low-value assets
2,228
2,485
Depreciation of right-of-use assets
4,902
4,148
Amounts recognised in statement of cash flows
2023
Total cash outflow for leases
6,455
6,184
30. Capital commitments
Capital commitments at 31 December for which no provision has been made in these accounts were:
2023
Contracted
1,019
933
31. Contingencies
2023
Performance guarantees and indemnities
6,509
8,194
The performance guarantees and indemnities have been entered into in the normal course of business.
A liability would only arise in the event of the Group failing to fulfil its contractual obligations.
Subsidiary audit exemptions
Rotork plc has issued guarantees over the liabilities of the following companies at 31 December 2024
under Section 479C of Companies Act 2006 and these entities are exempt from the requirements of
the Act relating to the audit of individual accounts by virtue of Section 479A of the Act.
• Bifold Fluidpower Limited (01787729)
• Bifold Group Limited (06186844)
• Flowco Limited (02891839)
• Rotork Midland Limited (02819224)
• Rotork Americas Holdings Limited (12320359)
• Rotork Controls Limited (00608345)
• Rotork Overseas Limited (01010160)
• Rotork UK Limited (01090344)
32. Related parties
The Group has a related party relationship with its subsidiaries and with its directors and key
management. A list of subsidiaries is shown on pages 208 to 210 of these financial statements.
Transactions between two subsidiaries for the sale and purchase of products or the subsidiary
and parent Company for management charges are priced on an arm’s length basis.
Key management emoluments
The emoluments of those members of the Rotork Management Board, including directors,
who are responsible for planning, directing and controlling the activities of the Group were:
2023
Emoluments including social security costs
8,234
6,713
Pension contributions
272
261
Share-based payments
1,363
1,628
9,869
8,602
No directors are members of defined contribution schemes and therefore no cash has been paid into
defined contribution schemes on their behalf.
The aggregate amount of gains made by directors on the exercise of share options was £104,000
(2023: £95,000).
The aggregate amount of remuneration for all directors can be found in the Directors’ Remuneration
Report in the Single figure table on pages 145 to 146.
33. Post balance sheet events
On 10 March 2025 Rotork agreed to acquire 100% of the equity interest in Noah Actuation Co. Ltd.,
a company headquartered in Seoul, South Korea for an enterprise value of £44m. The acquisition will
expand Rotork’s electric actuator offering and is fully aligned to the Growth+ strategy. Completion is
expected in the coming days and therefore the initial accounting for the business combination has
not yet been completed. Further information will be provided in the condensed consolidated interim
financial statements of the Group for the period ended 30 June 2025.
For the year ended 31 December 2024
Rotork Annual Report 2024 rotork.com204
Notes to the Group financial statements Strategic report Corporate governance Financial statements
2024 2023
Notes £000 £000
Non-current assets
Property, plant and equipment c 6 10
Investments d 43,205 43,205
Amounts owed by Group undertakings 355,432 322,995
Deferred tax assets e 808 284
Total non-current assets 399,451 366,494
Current assets
Amounts owed by Group undertakings 57,812 44,161
Other receivables f 280 447
Cash and cash equivalents — —
Total current assets 58,092 44,608
Total assets 457,543 411,102
Current liabilities
Trade payables 257 288
Current tax 8,008 7,888
Amounts owed to Group undertakings 108,076 29,950
Other payables g 9,023 4,876
Total current liabilities 125,364 43,002
Non-current liabilities
Preference share capital g 40 40
Total non-current liabilities 40 40
Total liabilities 125,404 43,042
Net assets 332,139 368,060
Equity
Issued equity capital i 4,232 4,306
Share premium 21,842 21,004
Capital redemption reserve 1,792 1,716
Retained earnings 304,273 341,034
Total equity 332,139 368,060
The Company reported a total comprehensive income for the financial year of £77 ,998,000
(2023:£77,489,000).
These Company financial statements, company number 00578327, were approved by the Board
ofDirectors on 10 March 2025 and were signed on its behalf by:
K Huynh and B Peacock
Directors
Issued
equity
capital
£000
Share
premium
£000
Capital
redemption
reserve
£000
Retained
earnings
£000
Total
equity
£000
Balance at 31 December 2022 4,304 19,959 1,716 319,139 345,118
Total comprehensive income for the year — — — 77,4 89 77,489
Equity settled share-based
paymenttransactions — — — 2,282 2,282
Share options exercised by employees 2 1,045 — — 1,047
Own ordinary shares acquired — — — (2,444) (2,444)
Own ordinary shares awarded under
share schemes — — — 3,388 3,388
Dividends — — — (58,820) (58,820)
Balance at 31 December 2023 4,306 21,004 1,716 341,034 368,060
Total comprehensive income for the year — — — 79,998 79,998
Equity settled share-based
paymenttransactions — — — 4,046 4,046
Share options exercised by employees 2 838 — — 840
Own ordinary shares acquired — — — (10,348) (10,348)
Own ordinary shares awarded under
share schemes — — — 3,134 3,134
Share buyback programme (76) — 76 (50,326) (50,326)
Dividends — — — (63,265) (63,265)
Balance at 31 December 2024 4,232 21,842 1,792 304,273 332,139
Rotork plc Company balance sheet
At 31 December 2024
Rotork plc Company statement of changes in equity
At 31 December 2024
rotork.com Rotork Annual Report 2024205
Strategic report Corporate governance Financial statements
Rotork plc Company balance sheet and statement of changes in equity Strategic report Corporate governance Financial statements
a) Accounting policies
The following accounting policies have been applied consistently in dealing with items which are
considered material in relation to the financial statements. Notes a to j relate to the Company rather
than the Group. Except where indicated, values in these notes are in £000.
Basis of preparation
The financial statements have been prepared under the historical cost convention.
The Company has applied Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (FRS 101)
issued by the Financial Reporting Council (FRC) incorporating the Amendments to FRS 101 issued by
the FRC in July 2015, and the amendments to Company law made by The Companies, Partnerships
and Groups (Accounts and Reports) Regulations 2015. In these financial statements, the Company
has applied the exemptions available under FRS 101 in respect of the following disclosures:
• a Cash Flow Statement and related notes;
• comparative period reconciliations for share capital and tangible fixed assets;
• disclosures in respect of transactions with wholly-owned subsidiaries;
• disclosures in respect of capital management;
• the effects of new but not yet effective IFRSs; and
• disclosures in respect of the compensation of Key Management Personnel.
Notes to the Company financial statements
The Company produces consolidated financial statements which have been prepared in accordance
with UK-adopted international accounting standards. As the consolidated financial statements of
theCompany include the equivalent disclosures, the Company has also taken the exemptions under
FRS 101 available in respect of the following disclosures:
• IFRS 2 Share Based Payments in respect of Group settled share based payments;
• the disclosures required by IFRS 7 and IFRS 13 regarding financial instruments; and
• the disclosures required by IAS 12 Income Taxes in connection with Pillar Two.
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of
other companies within the Group, the Company considers these to be insurance arrangements, and
accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent
liability until such time as it becomes probable that the Company will be required to make a payment
under the guarantee. The Company accounts for intra-group cross guarantees under IFRS 9.
As permitted by s408 of the Companies Act 2006 the Company has elected not to present its own
profit and loss account or statement of comprehensive income for the year. The profit attributable
tothe Company is disclosed in the footnote to the Company’s balance sheet.
Audit fees
Amounts receivable by the Company’s auditor and its associates in respect of services to the
Company and its associates, other than the audit of the Company’s financial statements, have not
been disclosed as the information is required instead to be disclosed on a consolidated basis in the
consolidated financial statements.
Going concern
The directors are satisfied that the Company has sufficient resources to continue in operation for a
period of not less than 12 months from the date of this report. Accordingly, the directors continue to
adopt the going concern basis in preparing the financial statements. Assumptions relating to going
concern for the Company are aligned to the Group as described on page 178.
Investments in subsidiaries
Investments are measured at cost less any provision for impairment and comprise investments in
subsidiary companies.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.
Plant and machinery are depreciated by equal annual instalments by reference to their estimated
useful lives and residual values at annual rates of between 10% and 33%. Depreciation methods,
useful lives and residual values are reviewed at each balance sheet date.
Post-retirement benefits
The Company participates in a UK Group pension scheme providing benefits based on final pensionable
salary. The assets of the scheme are held separately from those of the Company. The sponsoring
employer for the Group pension scheme is Rotork Controls Ltd. No contractual agreement or policy is
in place for charging to individual Group entities the net defined benefit cost for the plan as a whole.
As a result, in accordance with IAS 19, the amount charged to the profit and loss account represents
the contributions payable to the scheme in respect of the accounting period.
Classification of preference shares
In line with the requirements of IFRS 9, Financial Instruments, the cumulative redeemable preference
shares issued by the Company are classified as long-term debt. The preference dividends are charged
within interest payable.
Deferred taxation
Deferred tax is provided on temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. The following
temporary differences are not provided for: the initial recognition of goodwill, the initial recognition
of assets or liabilities that affect neither accounting nor taxable profit other than in a business
combination, and differences relating to investments in subsidiaries to the extent that they will
probably not reverse in the foreseeable future. The amount of deferred tax provided is based on
theexpected manner of realisation or settlement of the carrying amount of assets and liabilities,
using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits
willbe available against which the temporary difference can be utilised.
Rotork Annual Report 2024 rotork.com206
Notes to the Company financial statements Strategic report Corporate governance Financial statements
Notes to the Company financial statements Strategic report Corporate governance Financial statements
a) Accounting policies continued
Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are translated using
the rate of exchange at the balance sheet date and the gains or losses on translation are included in
the profit and loss account.
Share-based payments
The Company has adopted IFRS 2 and its policy in respect of share-based payment transactions
isconsistent with the Group policy shown in note 1 to the Group financial statements. Costs in
relation to share-based awards made to other Group company employees are recharged to each
subsidiary company.
Dividends
Interim dividends are recorded in the financial statements when they are paid. Final dividends
arerecorded in the financial statements in the period in which they are approved by the
Company’sshareholders.
Critical judgements and key estimation uncertainties
Estimates and judgements are regularly evaluated and are based on historical experience and
otherfactors, including expectations of future events that are believed to be reasonable under
thecircumstances.
The Company makes estimates and assumptions concerning the future. The resulting estimates will,
by definition, seldom equal the actual results. The estimates and assumptions that have a risk of
causing a material adjustment to the carrying amount of assets and liabilities in the next financial
year are listed below.
There are no critical accounting estimates or judgements requiring evaluation.
b) Personnel expenses in the Company profit and loss account
2024 2023
Wages and salaries (including bonus and incentive plans) 9,044 6,799
Social security costs 1,579 1,109
Pension costs 259 209
Share-based payment charge 2,067 1,799
12,949 9,916
During the year there were 42 (2023: 34) employees of Rotork plc including the two (2023: two)
executive directors.
Share-based payments
The share-based payment charge relates to employees of the Company participating in the Long Term
Incentive Plan (LTIP). The disclosures required under IFRS 2 can be found in note 26 to the Group
Financial Statements. The table below sets out the movement of share options under the LTIP for
employees of the Company.
Outstanding
at start of year
Granted
during year
Vested
during year Lapsed
Outstanding
at end of year
2021 Award 377,220 — (14,404) (362,816) —
2022 Award 639,693 — — (21,256) 618,437
2023 Award 691,961 — — (99,816) 592,145
2024 Award — 726,260 — — 726,260
1,708,874 726,260 (14,404) (483,888) 1,936,842
The weighted average remaining life of awards outstanding at the year end is one year.
c) Property, plant and equipment in the Company balance sheet
Plant and
equipment
Cost
At 1 January 2024 and 31 December 2024 19
Depreciation
At 1 January 2024 9
Charge for the year 4
At 31 December 2024 13
Net book value
At 31 December 2024 6
At 31 December 2023 10
d) Investments in the Company balance sheet
Shares in Group companies
2024 2023
At 31 December 43,205 43,205
rotork.com Rotork Annual Report 2024207
Notes to the Company financial statements Strategic report Corporate governance Financial statements
d) Investments in the Company balance sheet continued
The Company has the following investments in wholly-owned subsidiaries. The principal activities
ofall the subsidiary undertakings are those of the Group, except as indicated below:
D Dormant company H Holding company N Active non-trading company
Subsidiary Incorporated in Registered address
100% owned by Rotork plc
G.H. Chaplin & Co
(Engineers)Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Analysis Limited
N
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Cleaners Limited
N
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Control and Safety Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Instruments Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Nominees Limited
N
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Widcombe (Developments) Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Controls Limited England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Overseas Limited
H
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Rotork ControlsLimited
Rotork Actuation (Shanghai) Co., Ltd China Building G, No.260 Liancao Road, Minhang
District, Shanghai, PRC 201108
Rotork Trading (Shanghai) Co., Ltd China Room 1177, No. 400, Middle Zhejiang Road,
Huangpu District, Shanghai, PRC
Rotork Flow Technology
(Suzhou)Co., Ltd
China Building A, No. 88, Yinhe Road, Eastsouth
Street, Changshu, Jiangsu Providence, PRC
Rotork Controls (India)
PrivateLimited
India 28B, Ambattur Industrial Estate (North Phase),
Ambattur, Chennai 600 098, India
Rotork UK Limited England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Valvekits Limited
H
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Americas Holdings Limited
N
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
75% owned by Rotork ControlsLimited
Rotork Saudi Arabia LLC Saudi Arabia LC07, Al-Khobar, 31671 Dammam, Kingdom
ofSaudi Arabia
100% owned by Rotork OverseasLimited
Rotork Australia Pty Limited Australia 21-23 Décor Drive, Hallam, VIC, 3803, Australia
Rotork Controls Comercio
DeAtuadores LTDA
Brazil Condomínio Industrial Veccon Zeta Estrada
Mineko Ito n˚ 4.30, Sumaré, São Paulo,
13178-542, Brazil
15175445 Canada Inc.
1
Canada 2-6725 Millcreek Drive, Mississauga, Ontario
Canada L5N 5V, Canada
Subsidiary Incorporated in Registered address
Rotork Controls (Canada) Limited Canada 2-6725 Millcreek Drive, Mississauga, Ontario,
L5N-5V3, Canada
Rotork Andina SpA Chile Canal La Punta 8770, Bodega 32, Renca, Santiago
Bifold Group Limited
H
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Midland Limited England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Rotork Motorisation SAS France 75, rue Rateau 93126 La Courneuve Cedex, France
Rotork Controls
(Deutschland)GmbH
N
Germany Siemensstr. 33, 40721 Hilden, Germany
Rotork Germany Holdings GmbH
H
Germany Mühlsteig 45, 90579 Langenzenn, Germany
Rotork Limited Hong Kong 5/F, Manulife Place, 348 Kwun Tong Road,
Kowloon, Hong Kong
Rotork Controls Italia Srl Italy Via Portico 17, 24050, Orio al Serio,
Bergamo,Italy
Rotork Japan Co Limited Japan 2-2-24 Sengoku, Koto-ku, Tokyo, 135-
0015Japan
Rotork Middle East FZE Jebel Ali Free Zone PUB-LC 07, near R/A 08, PO Box 262903, Jebel
Ali Free Zone, Dubai, United Arab Emirates
Rotork (Malaysia) Sdn Bhd Malaysia 1-17-1, Menara Bangkok Bank, Berjaya
CentralPark, No 105, 50450 Jalan Ampang,
Kuala Lumpur, Malaysia
Rotork Actuation Sdn Bhd Malaysia 1-17-1, Menara Bangkok Bank, Berjaya
CentralPark, No 105, 50450 Jalan Ampang,
Kuala Lumpur, Malaysia
Rotork Gears Holding BV
H
Netherlands Nijverheidstraat 25, 7581 PV Losser, Netherlands
Robusta Miry Brook BV
H
Netherlands Herikerbergweg 88, 1101CM,
Amsterdam,Netherlands
Rotork Norge AS Norway Ormahaugvegen 3, 5347 Ågotnes, Norway
Rotork Polska Zoo Poland Zabrze, Plutonowego Ryszarda Szkubacza 8,
41-800 Zabrze, Poland
Rotork Rus Limited
2
Russia 127254 Moscow, Rustaveli street, 14, bld. 6,
space 1/4
Rotork Controls (Singapore)
PteLimited
Singapore 426 Tagore Industrial Avenue, Sindo Industrial
Estate, Singapore 787808
Rotork Africa (Pty) Limited South Africa 136 Kuschke Street, Meadowdale, Germiston,
Gauteng 1601 South Africa
Rotork Controls Korea Co., Ltd South Korea Room 515, 42 Jangmi-ro, Bundang-gu,
Seongnam-si, Gyeonggi-do, 13496,
RepublicofKorea,
Rotork Annual Report 2024 rotork.com208
Notes to the Company financial statements Strategic report Corporate governance Financial statements
Subsidiary Incorporated in Registered address
Rotork YTC Limited South Korea 81 Hwanggeum-ro, 89 Beon-gil, Yangchon-
eup, Gimpo-si, Gyeonggi-do, 1048,
RepublicofKorea,
Rotork Controls (Iberia) SL Spain Larrondo Beheko Etorbidea, Edificio 2, 48180
Loiu Bizkaia, Spain
Rotork Sweden AB Sweden Box 80, 791 22 Falun, Sweden
Rotork AG
H
Switzerland Fuchsacker 678, 9426 Lutzenberg, Switzerland
Rotork Inc
H
USA 675 Mile Crossing Blvd., Rochester NY 14624,
United States
Rotork Controls de Venezuela SA Venezuela Av. San Felipe Edif, La Castellana Caracas
(Chacao) Miranda Zona Postal 1060, Venezuela
Rotork Turkey Akıs¸ Kontrol
Sistemleri Ticaret Limited Sirketi
Turkey Aydınli Mh. Melodi Sk., Bilmo Küçük Sanayi
Sitesi, No:35/1-2, Tuzla, Istanbul, 34953, Turkey
100% owned by 15175445 Canada Inc
13688682 Canada Inc
1
13887987 Canada Inc
1
13887928 Canada Inc
1
Canada
Canada
Canada
2-6725 Millcreek Drive, Mississauga, Ontario
Canada L5N 5V, Canada
2-6725 Millcreek Drive, Mississauga, Ontario
Canada L5N 5V, Canada
2-6725 Millcreek Drive, Mississauga, Ontario
Canada L5N 5V, Canada
33.33% owned by each of13688682 Canada Inc,
13887987Canada Inc and 13887928Canada Inc
Hanbay Inc
1
Canada 2-6725 Millcreek Drive, Mississauga, Ontario
Canada L5N 5V, Canada
100% owned by Valvekits Limited
Circa Engineering Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Rotork Trading
(Shanghai) Co Limited
Centork Trading (Shanghai) Co. Ltd China Room C-02, 1/F, West Area No. 2 Building, No.
29 Jiatai Road, Free Trade Zone, Shanghai, China
100% owned by Rotork UK Limited
Prokits Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Flowco Limited England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Rotork Controls Italia Srl
Rotork Instruments Italy Srl Italy Via Portico 17, 24050, Orio al Serio,
Bergamo,Italy
Rotork Fluid Systems Srl Italy Via Padre Jacques Hamel, 55016 Porcari,
Lucca,Italy
Subsidiary Incorporated in Registered address
100% owned by Rotork Gears Holding BV
Rotork Gears BV Netherlands Nijverheidstraat 25, 7581,
PV Overijssel, Netherlands
Rotork BV Netherlands Mandenmakerstraat 45, 3194,
DA Hoogvliet, Netherlands
100% owned by Rotork Inc
Rotork (Thailand) Limited Thailand 35/8 Soi Ladprao 124 (Sawasdikarn), Ladprao
Road, Plubpla Sub-district, Bangkok Metropolis,
Wangtonglang District, Thailand
Rotork Controls Inc USA 675 Mile Crossing Blvd., Rochester,
NY 14624, USA
Remote Control Inc USA 77 Circuit Drive. North Kingstown,
RI 02852, USA
Ranger Acquisition Corporation
H
USA The Corporation Trust Company, Corporation
Trust Center, 1209 Orange St., Wilmington,
DE19801 USA
100% owned by Ranger Acquisition Corporation
Fairchild Industrial Products Company USA 3920 West Point Blvd, Winston-Salem,
NC27103, USA
100% owned by Fairchild Industrial Products Company
Fairchild Industrial Products
(Sichuan) Company Limited
D
China Room 1201, Complex Square, No.88 West
Shenghe No.1 Road, High Tech Zone, Chengdu,
Sichuan, China. 610041
Fairchild India Private Limited
D
India 56-C/BB, Janakpuri, New Delhi-110058 IN, India
100% owned by Bifold GroupLimited
Bifold Fluidpower (Holdings)Limited
H
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Bifold Fluidpower (Holdings) Limited
Bifold Fluidpower Limited England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
MTS Precision Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Marshalsea Hydraulics Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
Bifold Company
(Manufacturing)Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Bifold Fluidpower Limited
Fluidpower (Stainless Steel) Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Rotork Germany Holdings GmbH
Max Process GmbH Germany Rastenweg 10, 53489 Sinzig, Germany
d) Investments in the Company balance sheet continued
rotork.com Rotork Annual Report 2024209
Notes to the Company financial statements Strategic report Corporate governance Financial statements
Subsidiary Incorporated in Registered address
Schischek GmbH Germany Mühlsteig 45, 90579 Langenzenn, Germany
Rotork GmbH Germany Mühlsteig 45, 90579 Langenzenn, Germany
100% owned by Rotork AG
Schischek Limited
D
England and Wales Rotork House, Brassmill Lane, Bath, BA1 3JQ
100% owned by Robusta Miry Brook BV
Rotork Servo Controles de Mexico
S.A. de C.V
Mexico Centeotl 223, Colonia Industrial San Antonio,
Delegación Azcapotzalco, Federal District,
02760, Mexico
1 Amalgamated into Rotork Controls (Canada) Limited with effect from 1 January 2025.
2 Non-trading entity. Dormant-pending liquidation
e) Deferred tax assets and liabilities in the Company balance sheet
Deferred tax assets and liabilities are attributable to the following:
Assets
2024
Liabilities
2024
Net
2024
Assets
2023
Liabilities
2023
Net
2023
Tangible fixed assets 6 — 6 6 — 6
Employee benefits 362 — 362 203 — 203
Other items 440 — 440 75 — 75
808 — 808 284 — 284
Movements in the net deferred tax balance during the year are as follows:
2024 2023
Balance at 1 January 284 51
Credited to the income statement 524 233
808 284
There is an unrecognised deferred tax liability for temporary differences associated with investments
in subsidiaries. Rotork plc controls the dividend policies of its subsidiaries and consequently the
timing of the reversal of the temporary differences. The value of temporary differences associated
with unremitted earnings of subsidiaries for which deferred tax has not been recognised is
£357,208,000 (2023: £320,839,000).
A deferred tax asset has not been recognised in relation to capital losses of £7,632,000
(2023:£7,559,000), due to uncertainty over the offset against future capital profits in the
companiesconcerned. There is no expiry date in relation to this asset.
d) Investments in the Company balance sheet continued f) Other receivables in the Company balance sheet
2024 2023
Prepayments 271 423
Other receivables 9 24
280 447
g) Other payables in the Company balance sheet
2024 2023
Other taxes and social security 790 518
Other payables 4,207 3,054
Accruals 4,026 1,304
9,023 4,876
The Company has a £17,000,000 unused uncommitted gross overdraft facility (2023: £17,000,000)
and is part of a UK banking arrangement, see note h.
h) Contingencies in the Company
The UK banking arrangements are subject to cross-guarantees between the Company and its
UKsubsidiaries. These accounts are subject to a right of set-off. The performance guarantees and
indemnities have been entered into in the normal course of business. A liability would only arise
inthe event of the Group failing to fulfil its contractual obligations.
i) Capital and reserves in the Company balance sheet
Details of the number of ordinary shares in issue and dividends paid in the year are given in note 18
to the Group financial statements.
j) Related parties
The Company has taken advantage of the exemption not to disclose transactions with related parties
that are wholly owned by a subsidiary of the Company. The following table provides the total amount
of transactions that have been entered into with non-wholly owned related parties for the relevant
financial year and outstanding balances at the year end.
Related party 2024 2023
Rotork Saudi Arabia LLC Group charges 591 193
Amounts due by 740 193
Rotork Annual Report 2024 rotork.com210
Notes to the Company financial statements Strategic report Corporate governance Financial statements
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Revenue 754,428 719,150 641,812 569,160 604,544 669,344 695,713 642,229 590,078 546,459
Cost of sales (382,494) (380,054) (350,079) (306,394) (320,234) (357,718) (384,253) (358,090) (328,410) (296,944)
Gross profit 371,934 339,096 291,733 262,766 284,310 311,626 311,4 60 284,139 261,668 249,515
Overheads (236,075) (190,329) (168,126) (157,056) (171,207) (189,683) (188,542) (198,167) (167,891) (145,129)
Operating profit 135,859 148,767 123,607 105,710 113,103 121,943 122,918 85,972 93,777 104,386
Adjusted operating profit
1
178,406 164,475 143,245 128,080 142,543 151,005 146,015 130,162 120,588 125,272
Amortisation of acquired intangible assets (2,604) (2,110) (7,051) (9,001) (14,110) (18,841) (20,284) (27,183) (26,811) (20,886)
Defined benefit scheme settlement loss (18,009) — — — — — — — — —
Other adjustments (21,934) (13,598) (12,587) (13,369) (15,330) (10,221) (2,813) (17,007) — —
Operating profit 135,859 148,767 123,607 105,710 113,103 121,943 122,918 85,972 93,777 104,386
Net interest 4,602 1,871 495 221 (537) (2,953) (2,170) (5,386) (2,707) (2,517)
Profit before taxation 140,461 150,638 124,102 105,931 112,566 118,990 120,748 80,586 91,070 101,869
Tax expense (35,663) (37,150) (30,901) (25,686) (26,808) (29,096) (29,004) (24,973) (23,897) (27,012)
Profit for the year 104,798 113,48 8 93,201 80,245 85,758 89,894 91,744 55,613 67,173 74,857
Dividends 63,265 58,820 55,384 75,515 33,926 52,287 48,288 45,218 43,876 43,765
Basic EPS 12.1p 13.2p 10.9p 9.2p 9.8p 10.3p 10.5p 6.4p 7.7p 8.6p
Adjusted Basic EPS
1
15.9p 14.6p 12.7p 11.3p 12.5p 13.0p 12.6p 10.6p 10.0p 10.4p
Diluted EPS 12.1p 13.2p 10.8p 9.2p 9.8p 10.3p 10.5p 6.4p 7.7p 8.6p
1 Adjusted operating profit is the Group’s operating profit excluding the amortisation of acquired intangible assets and other adjusting items as defined in note 1.
The ten year trading history presented above is unaudited.
rotork.com Rotork Annual Report 2024211
Ten year trading history Strategic report Corporate governance Financial statements
The tables below show the split of shareholder and size of shareholding in Rotork plc.
Ordinary shareholder by type
Number of
holdings %
Number of
shares %
Individuals 2,725 82.23 18,004,720 2.13
Bank or nominees 547 16.51 819,890,723 96.87
Other company 18 0.54 1,769,200 0.21
Other corporate body 24 0.72 6,716,622 0.79
3,314 100 846,381,265 100
Range
Number of
holdings %
Number of
shares %
1-1,000 1,156 34.90 473,451 0.06
1,001-2,000 428 12.91 630,652 0.07
2,001-5,000 515 15.54 1,688,606 0.20
5,001-10,000 340 10.26 2,484,906 0.29
10,001-50,000 462 13.94 9,972,984 1.18
50,001-100,000 80 2.41 5,672,647 0.67
100,001 + 333 10.05 825,458,019 97.53
3,314 100 846,381,265 100
Source: Equiniti.
Dividend information
In respect of each of the last six years, the table below details the amounts of interim and final
dividends declared or, in the case of the 2024 final dividend, proposed and subject to shareholder
approval at the 2025 AGM.
Interim dividend
(p)
Final dividend
(p)
Total dividends
(p)
2024 2.75 5.00
1
7.75
2023 2.55 4.65 7.20
2022 2.40 4.30 6.70
2021 2.35 4.05 6.40
2020
2
— 6.30 6.30
2019
2
2.30 3.90 6.20
Shareholder and dividend information presented above is unaudited.
1 Subject to shareholder approval at the 2025 AGM.
2 On 31 March 2020, the Board decided to withdraw the recommendation to pay the 2019 final dividend of 3.90p per share.
This was to reflect the exceptional set of circumstances imposed by COVID-19 at the time. The Board subsequently decided
to pay the 3.90p per share in full in September 2020 as an interim dividend. To aid year-on-year comparisons the table
above presents this dividend as the 2019 Final dividend reflecting the year to which it related.
Financial calendar
11 March 2025 Preliminary announcement of annual results for 2024
24 April 2025 Ex-dividend date for proposed final 2024 dividend
25 April 2025 Record date for proposed final 2024 dividend
2 May 2025 Announcement of trading update
2 May 2025 Annual General Meeting to be held at Bailbrook House Hotel,
EveleighAvenue, London Road West, Bath, Somerset, BA1 7JD
3 June 2025 Payment date for final 2024 dividend
1
5 August 2025 Announcement of interim financial results for 2025
19 November 2025 Announcement of trading update
1 Subject to shareholder approval at the 2025 AGM.
Rotork Annual Report 2024 rotork.com212
Share register information Strategic report Corporate governance Financial statements
Rotork plc’s commitment to environmental issues is reflected in
this Annual Report, which has been printed on Symbol Freelife
Satin and Arena, an FSC
®
certified material.
This document was printed by Park Communications using its
environmental print technology, which minimises the impact
ofprinting on the environment.
Vegetable-based inks have been used and 99% of dry waste is
diverted from landfill. The printer is a CarbonNeutral
®
company.
Both the printer and the paper mill are registered to ISO 14001.
Group General Counsel
&CompanySecretary
Stuart Pain
Registered Office
Rotork plc
Rotork House
Brassmill Lane
Bath BA1 3JQ
Company Number
00578327
Registrars
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Stockbrokers
J.P. Morgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Morgan Stanley
20 Bank Street
Canary Wharf
London E14 4AD
Financial Advisers
Rothchild & Co
New Court
St Swithin’s Lane
London EC4N 8AL
J.P. Morgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Morgan Stanley
20 Bank Street
Canary Wharf
London E14 4AD
Auditor (until 30 April 2024)
Deloitte LLP
2 New Street Square
London EC4A 3BZ
Auditor (from 30 April 2024)
KPMG LLP
66 Queen Square
Bristol
BS1 4BE
Financial Public Relations
FTI Consulting
200 Aldersgate
Aldersgate Street
London EC1A 4HD
rotork.com Rotork Annual Report 2024213
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