Diploma Regulatory News (DPLM)

DIPLOMA PLC

12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: +44 (0)20 7549 5700

FACSIMILE: +44 (0)20 7549 5715

FOR IMMEDIATE RELEASE

6 February 2020

DIPLOMA PLC

DIRECTORATE CHANGE

Diploma PLC, the international group supplying specialised products and services, is pleased to announce the appointment of Barbara Gibbes as Chief Financial Officer Designate. Barbara will join the Company on 2 March 2020 and, after a period of transition, will join the Board as Chief Financial Officer on 22 June 2020. Nigel Lingwood will step down from the Board on 22 June and continue to facilitate a successful handover until he leaves the Group, as previously announced, on 30 September 2020.

Barbara is a chartered accountant having qualified with Deloitte LLP before progressing to Director in Audit and Assurance. She has since held senior finance positions at Management Consulting Group PLC, Domino's Pizza Group plc and Intu Properties plc.

Commenting on the appointment, Johnny Thomson, Chief Executive of Diploma said:

"I am delighted to welcome Barbara to Diploma. She has a wealth of experience and a strong track record in fast paced, decentralised, service-orientated environments. She has strategic vision, strong commercial acumen and a track record of execution. I have no doubt that Barbara is an excellent fit for Diploma, and I am really excited about working with her to deliver our strategic objectives and the next phase of growth."

Barbara Gibbes said:

"I am looking forward to joining Diploma. The business has an excellent track record of value-added customer service and strong returns, and I look forward to working with Johnny and the management team to further develop and realise the Group's potential."

For further information, please contact:

Additional Information:

1. As Chief Financial Officer of Diploma PLC, Barbara will receive an annual base salary of £340,000. In line with the Directors' Remuneration Policy, the Remuneration Committee will review the level of the salary over the next few years and, subject to individual performance, will consider making increases to her base salary to reflect increasing skill and experience.

2. Barbara will receive a pension allowance of 4% of base salary, aligned with the majority of the Group's UK workforce. This is subject to review and alignment if the contribution level for the majority of the UK workforce increases.

3. Barbara will also be eligible to participate in the Company's Annual Performance Bonus Plan up to a maximum of 125% of base salary. The Award made under the Annual Performance Bonus Plan for the year ending 30 September 2020 will be pro-rated for time served (including as CFO Designate) and 50% of any bonus awarded (net of tax) will be used to buy shares which will be subject to deferral until Barbara meets the minimum shareholding requirement of 200% of base salary.

4. Barbara will also be eligible to participate in the Company's long-term incentive plan, the Performance Share Plan ("PSP"). She will be granted a pro-rated award under the PSP for the performance period 1 October 2019 to 30 September 2022 at the level of 100% of base salary (100% of base salary is the pro-rated award for time served (including as CFO Designate) based on a typical grant of 175% of base salary). At the discretion of the Remuneration Committee, it is anticipated that future awards will typically be granted at the level of 175%. PSP awards will be subject to a post-vesting two-year holding requirement. Barbara will be required to comply with the Company's shareholding requirements.

5. All these remuneration arrangements are consistent with the terms of the Directors' Remuneration Policy which is set out in the 2019 Annual Report & Accounts and was approved by shareholders at the AGM on 15 January 2020.

6. In the last 5 years Barbara was (but is no longer) a director of Prozone Intu Properties Limited and of Intu Debenture Plc, both publicly quoted companies. No other information is required to be disclosed pursuant to Listing Rule 9.6.13 in respect of the Board's decision to appoint Barbara Gibbes as a director of the Company.

NOTE TO EDITORS:

Diploma PLC is an international group supplying specialised products and services to a wide range of end segments in our three Sectors: Life Sciences, Seals and Controls.

Diploma's businesses are focussed on supplying essential products and services which are funded by the customers' operating rather than their capital budgets, providing recurring income and stable revenue growth.

Our businesses then design their individual business models to closely meet the requirements of their customers, offering a blend of high quality customer service, deep technical support and value adding activities. By supplying essential solutions, not just products, we build strong long term relationships with our customers and suppliers, which support attractive and sustainable margins.

Finally we encourage an entrepreneurial culture in our businesses through our decentralised management structure. We want our managers to feel that they have the freedom to run their own businesses, while being able to draw on the support and resources of a larger group. These essential values ensure that decisions are made close to the customer and that the businesses are agile and responsive to changes in the market and the competitive environment.

The Group employs ca. 2,100 employees and its principal operating businesses are located in the UK, Northern Europe, North America and Australia.

Over the last ten years, the Group has grown adjusted earnings per share at an average of ca. 16% p.a. through a combination of organic growth and acquisitions. Diploma is a member of the FTSE 250 with a market capitalisation of ca. £2.2bn.

Further information on Diploma PLC can be found at www.diplomaplc.com

 LEI: 2138008OG17VYG8FGR19