Babcock Regulatory News (BAB)

28 January 2016

Babcock International Group PLC (Babcock or the Group)

Babcock announces CEO succession

Babcock, the UK's leading engineering support services company, today announces that Peter Rogers will retire on 31 August 2016. Peter was appointed Chief Executive of the Group in August 2003. During his 13-year tenure Babcock has grown from a small cap business to a FTSE 100 company with a turnover of £4.5 billion in 2014/15, delivering an increase of some 1200 per cent in total shareholder return over the period.

The Board is pleased to announce that Archie Bethel will succeed Peter as Chief Executive. Currently Chief Executive of the Marine & Technology division, Archie has been an integral part of Peter's senior management team since joining Babcock in 2004 and has overseen the successful development and growth of the Group's Marine & Technology business both in the UK and overseas. To ensure a smooth handover of responsibilities, Archie will take the role of Chief Operating Officer from 1 April 2016 until Peter's retirement.

The Board is also pleased to announce that Archie will be succeeded by John Howie who is currently Managing Director of Naval Marine with responsibility for the management of Babcock's submarine, warship and naval base operations, and a member of the divisional executive. John will take the role of Chief Executive of the Marine & Technology division with effect from 1 April 2016, and will join the Group's Executive Committee.

Babcock Chairman Mike Turner said:

"Peter has been an outstanding Chief Executive. Under his leadership, Babcock has grown into one of the UK's leading businesses, whilst maintaining an enviable track record of delivery to customers and shareholders.

"I am delighted that Archie will be taking the role of Chief Executive. Archie has overseen the successful growth of the Group's largest division from a £273 million business in 2004 to a £1.6 billion business today, whilst reinforcing our reputation of being trusted to deliver increasingly complex and critical engineering programmes. Our thorough succession planning process, which involved close consideration of potential internal and external candidates, confirmed that he is the right person, with the right skills and experience to lead the Group as it continues to develop and achieve its strategy over the coming years."

Peter Rogers said:

"It has been a privilege to lead Babcock. This is a unique company staffed by great people and I am very proud of what we achieved together. I'm delighted that the Board has chosen Archie to succeed me. Archie has played a vital part in our success to date, and his skills, expertise and deep understanding of the business make him the ideal person to drive future growth both in the UK and internationally."

Archie Bethel said:

"I'm looking forward to taking on my new role. Our business model is proven and, together with my colleagues, I look forward to continuing to implement our strategy to deliver profitable growth and significant returns for shareholders as we continue to expand both at home and abroad."

S430(2B) Companies Act 2006

Pending his stepping down as Chief Executive on 31 August 2016, Peter Rogers will continue to be remunerated in accordance with the Company's remuneration policy. Details of the remuneration and the extent to which any of it will fall due for payment after he has ceased to be a director will be disclosed in the Directors' Remuneration Report that will form part of the Company's Annual Report and Accounts to be published in June 2016, and will also then be made available on the Company's website. As regards the share awards that he currently holds, he will, consistent with the terms of the Company's remuneration policy, retain these after his retirement and they will vest (subject, where applicable, to the performance conditions attached to them) on their normal vesting dates under the rules of the applicable share schemes. No payments fall to be made to Peter by way of compensation for loss of office.

Enquiries

Nick Hasell

Notes to Editors

Peter Rogers, CBEPeter joined the Board of Babcock as Chief Operating Officer in 2002 and became Chief Executive in 2003. Until 30 April 2015, Peter was Senior Independent Director, and latterly Deputy Chairman, of Galliford Try plc. He is a former Director of Courtaulds PLC and Acordis BV. He has also served as a President of Aerospace Defence Security (ADS).Archie Bethel, CBEArchie has been a member of Babcock's senior management team since joining the Company in 2004. He started his career working internationally as an engineer in the oil industry, where he held senior roles before becoming Chief Executive of Scottish Enterprise Lanarkshire. Prior to joining Babcock he was Chief Operating Officer at Motherwell Bridge, a major engineering firm.

John HowieJohn joined Babcock in 2001 as Managing Director of Babcock Naval Services Ltd, where he led the team which secured a contract to provide specialist support services at HMNB Clyde. John was appointed as Managing Director - Warships in 2007, with responsibility for providing support to the Royal Navy surface fleet and for Babcock's role in the Aircraft Carrier project. John is President of Scottish Engineering, a member of the Advisory Board for Strathclyde University Business School and a Director of the Society of Maritime Industries.