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

16 January 2019

DIPLOMA PLC

APPOINTMENT OF NEW CHIEF EXECUTIVE OFFICER

Diploma PLC ("the Company") is pleased to announce that Johnny Thomson will join the Board on 25 February 2019 as Chief Executive Officer.

Johnny has worked for Compass Group PLC for the last nine years. During the past three years he was both Group Finance Director of Compass Group PLC and a member of the Board of Compass Group PLC. He has also been Regional Managing Director of both Latin America and CAMEA (Central Asia, Middle East & Africa). Prior to these roles Johnny led Compass Group's businesses in Latin America.

Johnny began his career at PricewaterhouseCoopers LLP after which he joined Hilton Hotels in a senior executive role. He joined Compass in 2009 and left the Group at the end of 2018. Johnny has lived and worked in Europe, North America, Asia and across Latin America.

As previously announced, John Nicholas, who has been interim Executive Chairman since 29 August 2018, will relinquish his executive responsibilities and resume his non-Executive Chairman role immediately following this appointment.

John Nicholas, Chairman of Diploma PLC commented:

"I am delighted to welcome Johnny Thomson to Diploma. Johnny has extensive experience of working in a decentralised business with a core focus on service and distribution and a proven record of supplementing organic growth with bolt on acquisitions. He brings international experience and a successful track record for delivering results. I look forward to working closely with him during the next phase of Diploma's evolution and growth."

Johnny Thomson commented:

"I am excited to be joining Diploma as Chief Executive. The business has a strong track record of customer service, growth and shareholder returns. I look forward to leading such a strong and experienced team in developing the Group's significant potential."

For further information, please contact:

Additional Information

1. As Chief Executive Officer of Diploma PLC, Johnny Thomson will receive an annual salary of £670,000 and a pension allowance of 15% of salary. Johnny Thomson will also be eligible to participate in the Company's Annual Bonus Plan up to a maximum of 125% of salary and Long Term Incentive Plan ("LTIP") up to 175% of salary. Awards made under the Annual Bonus Plan and the LTIP will not be pro-rated in the year ending 30 September 2019 for time served.

2. To facilitate the recruitment, the award under the LTIP for the three-year performance period ending 30 September 2021 will be at the exceptional level of 250% of salary. In addition LTIP awards in respect of the three year performance period beginning 1 October 2019 and 1 October 2020 will be at a similar level, subject to Remuneration Committee discretion. 

3. Johnny Thomson will be required to comply with the Company's shareholding requirements.

4. All these remuneration arrangements are consistent with the Directors' Remuneration Policy as approved by shareholders at the AGM on 17 January 2018.

5. No further information is required to be disclosed pursuant to Listing Rule 9.6.13 in respect of Johnny Thomson's appointment as a Director of the Company.

NOTE TO EDITORS:

Diploma PLC is an international group of businesses supplying specialised technical products and services to the Life Sciences, Seals and Controls industries.

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. 1,800 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. 13% p.a. through a combination of underlying growth and acquisitions. Diploma is a member of the FTSE 250 with a market capitalisation of ca. £1.4bn.

Further information on Diploma PLC, together with a copy of this Announcement, is available at www.diplomaplc.com

LEI: 2138008OG17VYG8FGR19