Living our values Transforming our business

164 Pages·2015·6.06 MB·English

Who we are
UDG Healthcare plc
UDG Healthcare plc is a leading
international provider of services
to the healthcare industry.
Operating in 20 countries,
we improve the lives of thousands
of patients around the world
every day, thanks to powerful
partnerships with clients, healthcare
providers, manufacturers and
government agencies.
UDG Healthcare House
Living our values
Magna Drive
Magna Business Park
Citywest Road
Transforming our business
Dublin 24
Ireland
T: [phone] UDG Healthcare plc annualreport2015.udghealthcare.com
F: [phone] Annual Report and Accounts 2015
www.udghealthcare.com
UDG Healthcare plc Annual Report and Accounts 2015
2015 was a key year in UDG Healthcare’s
What we do How we do it
development as we continued to deliver tangible
strategic and financial progress. Demand for our
Our focus is on three main areas: What unites us is our values
specialist services from our healthcare industry and our common purpose.
We share one aim – to help
Commercial & Medical Services clients is growing and we enter the next phase
our clients succeed.
of the company’s development in a strong financial
Packaging Services
position. We look ahead with confidence as we are
Supply Chain Services
well positioned to advance our strategy and create
Partnership
further shareholder value through increasing our
We build on trust through
delivering on our promises.
market positions.
Read more on page 16
Brendan McAtamney
Chief Operating Officer
Ingenuity
We are committed to solving
problems and resourceful
thinking every day.
Our brands
Read more on page 18
Quality
Ashfield Sharp For us only the best
is good enough.
A global leader in commercial A global leader in commercial Read more on page 20
and medical services and clinical trial packaging
• Contract sales and marketing services
services (CSO) • Commercial packaging
• Healthcare communications • Clinical trials packaging
• Medical affairs and and logistics
regulatory services • Serialisation solutions
Energy
Where we operate
Read more on page 26 Read more on page 30
We achieve our clients’ goals
with imagination and passion.
Ashfield Commercial Read more on page 22
& Medical Services
Argentina, Austria, Belgium, Brazil,
Canada, Denmark, Finland, France,
Germany, Italy, Japan, Norway, Portugal,
Republic of Ireland, Spain, Sweden,
Turkey, United Kingdom, United States
Aquilant UnitedDrug
Expertise
Sharp Packaging Services
A leading distributor of specialist A market leader in distribution Belgium, the Netherlands, Together we have a wealth
medical and scientific products services in Ireland and United Kingdom, United States of knowledge and skills built
and services Northern Ireland over many years.
• Medical device sales • Pharma wholesale Aquilant Specialist Healthcare Services Read more on page 24
and distribution • Pre-wholesale – bulk distribution Republic of Ireland, the Netherlands,
• Scientific products sales, United Kingdom
distribution and service
United Drug Supply Chain Services
Northern Ireland, Republic of Ireland
Read more on page 36 Read more on page 34
Strategic Report Directors’ Report Financial Statements
2015 Highlights Contents
Strategic Report
Results reflecting our 2015 Highlights 01
Following a Strategic Path 02
Market Opportunity 04
transformative journey Our Strategic Model 06
Chairman’s Statement 08
Chief Executive’s Review 10
Operational highlights Financial highlights Strategy 12
Operating profit * (€m) Profit before tax * Key Performance Indicators 14
Case Study
€120.3m +24% – Partnership 16
– Ingenuity 18
– Quality 20
– Energy 22
Operating profits * Operating margin * – Expertise 24
Operational Review 26
+17% 5.2% – A &s Mhfeiedldic aClo Smermviecrecsia l 26
up 34 bps – Sharp Packaging Services 30
Ashfield operating profit * Adjusted diluted earnings per share * (EPS) – Supply Chain Services 34
Corporate Social Responsibility 38
Finance Review 44
+38% +21%
Risk Report 48
Sharp operating profit * Proposed increase in dividend Directors’ Report
Board of Directors 50
Corporate Governance 52
+55% +9%
Audit Committee Report 57
Directors’ Remuneration Report 61
Supply Chain operating profit * Cash inflow from operating activities Nomination Committee Report 79
Risk, Acquisitions & Finance
Committee Report 81
–23% €137.4m
Report of the Directors 83
Financial Statements
* A ll references to ‘operating profit’ and ‘adjusted earnings per share’ included in the Strategic Report are stated excluding Independent Auditor’s Report 86
the amortisation of acquired intangible assets, transaction costs and exceptional items. Group Income Statement 90
Group Statement of
Operating profit (€m)* TNhoen h-GigAhAligPh itnsf dorismclaotsieodn above include continuing and Comprehensive Income 91
120.3 discontinued operations, adjusted for amortisation Group Statement of
125 59.9 of acquired intangible assets, transaction costs, and Changes in Equity 92
100
84.4 3924.75 14032.3.6 tmeFhxineca egnspeuctnrioaelnrs Ra atlhel yipat etao macrctrsien. p ngTt oheStdet ar Gaencqdrcouaouirudpens drt ( eiunIpFngoRd prSetrsr)i n Icwnceihtrpeitlcraenhisna r( tfeGiopnAnraeaAnslcP ei)an lt Group BCalsahn Fcelo Swh Seteatt ement 943
76.8 20.6 under which the Group reports. The Group believes that Notes forming part of the
20.1 the presentation of these non-GAAP measures provides Group Financial Statements 95
75
12.3 15.5 15.7 19.1 29.6 uicnosvenefjsutlno scrutsip owpnilt ewhm iateh mn otoaurlr ei nI mFfRoerSam nfiaintaigonfnuc ilwa ulh ninidcfheor,r swmtahanetidnoi nvi,ge p worfoe tdvhi edin e s Comparenhye Sntsaitveem Inecnot mofe 142
50 44.4 48.3 46.1
40.2 Gunrdouerpl yaindg fitins adnivcisailo annsd. operating performance of the Choamnpgaensy i nS tEaqteumitye nt of 143
30.8 Company Balance Sheet 144
25 fTohre tshee n folnlo-GwAinAgP p fuinrpanocsieasl: measures are primarily used Company Cash Flow Statement 145
0 2011 2012 2013 2014 2015 • trtoe sesuevltat sdlu oirafet oec utohrr eo a phneisdrt aomtriaoicnaasl g;aenmd epnlat nrenmedu unnerdaetriolynin; gan d NComteps afonrym Finga npcaiartl Sotf attheem ents 146
• to communicate the Group’s performance to the Financial Calendar 157
� � � � � � Ashfield Commercial & Medical Services investment community. Contacts for Shareholders 158
Sharp Sharp Packaging Services Please see further information and definitions on page 159. Additional Information 159
UnitedDrugSupply Chain Services Glossary 160
Annual ReporUt DanGd HAcecaoltuhnctasr 2e 0p1l5c 01
oF lloniw g a tS ratecig aP th
Building leadership positions
evO r teh past 15 ey ars ew ah ev eb en om niv g rf o m deam nd uf lli f em nt to
deam nd creatoi n . si hT transti oi n ah s eb en pmi leem nted trh ou hg ub sni ess
strateg y and acuq si ti oi ns eh lpni g us to ub li d , epx and and rg o w
our capalib ti ei s , terrti orei s and leaderspih posti oi ns.
FROM
DEMAND
FULFILMENT
SOLUTIONS ...
2008
Acuq ri ed aSh rp Corporatoi n
twi h state-ot- f eh a- rt
2005 packangi g af cli ti ei s
Acuq ri ed nI 2oF cus , twi h Asefih ld ni teh US .
nI 2oF cus eb conim g teh sU’K No1.
2000 Contract Sales Organsi atoi n. Acuq ri ed nI of rMed2 010
ni
sAa ctluqehe risUK , e eam dnr tek Aetrs. niefih l g dteh eH caoltnch tarraec t
emAdllciai anlc cea si ll acceuq nri terde c2ni a0 tp0eh 7a US libati eidsd ani n g d amacordek umdtni rci g eglaostabeoi la nehrsca h lattonch a dr e
allonwi g entr y ni to teh US am rek t. our raneg o f sercvi es.
Acuq ri ed packangi g plants ni Wti h teh acuq si ti oi n o f
eB luig m and teh Neteh rlands. oW rldevE nts , ew eb caem
teh No1. specai lsi t prodvi er
Monvi g ni to eev nt am naeg em nt , o f ni ternatoi nal eh altch are
rP ocon si acuq ri ed to sercvi e teh em etni gs and eev nts.
sU’K eh altch are eev nts am rek t.
02 UAnDnGu aHl Reaelpthocrat raen dp lAc ccounts 2015
Strategic Report Directors’ Report Financial Statements

... TO DEMAND
CREATION
SOLUTIONS
2016 ONWARDS
nO 1 8 eS pteebm r 2015 GDU eH altch are
announced an agreeem nt to sell teh
nU ti ed rD u g Suppl y ahC ni ub sni esses
2014
and MAAST to MceK sson suejb ct to
Knowledeg oP ni t360 si U GD
UGD eH altch are sah reoh lder approav l
eH altch ares’ lareg st acuq si ti oi n
and copm etti oi n autoh rti y clearance .
to date and Asefih ld eb coem s
2012
At an E xtraordni ar y eG neral Meetni g
a gloab l am rek t leader ni
Acuq ri ed ahP rem x x , addni g
o f teh Copm an y on 1 3 cO toeb r 2015 ,
eh altch are coum nci atoi ns .
true ni ternatoi nal reac h and
sah reoh lders autoh rsi ed teh dri ectors
dept h to our Contract Sales
to copm lete teh dsi posal . ehT transactoi n
Acuq ri ed aG llai rd and Nyex on ,
Organsi atoi n capalib ti . y
ream ni s suejb ct to copm etti oi n clearance
deiv rsfinyi g our eh altch are
ciwh h si epx ected yb uJ ne 2016 .
coum nci atoi ns portof loi
Acuq ri ed lBi care ni teh
to ni clude scei ntcfi RP .
US and teh UK addni g
sTih transactoi n si teh culnim atoi n
addti oi nal clni ci al trai l
o f 15 ey ars o f stratecgi deev lopem nt
Sold our 50 % sah re ni nU rDi u g
and suppl y cah ni
yb teh rG oup . tI si conssi tent twi h
sDi trubi toi n rG oup.
packangi g epx ertsi e.
our strateg y to of cus on gehih r growt ,h
gehih r am rngi ni ternatoi nal eh altch are
2015
Moev to sole lsi tni g on
sercvi es ub sni esses , and progresses
oF ram lsi ed oj ni t ev nture twi h C M IC ,
London tS oc k Ecx ah neg
teh rG oups’ transof ram toi n to a om re
creatni g C MIC Asefih ld , deleiv rni g
( F T SE 250 . )
of cused ni ternatoi nal eh altch are
contract sales solutoi ns ni aJ pan.
sercvi es ub sni ess . UGD eH altch are
2013
si ew ll posti oi ned to deev lop and
nI ev sted ni epx ansoi n o f aSh rp
nU ti ed rD u g plc eb coem s
strengteh n esix tni g am rek t posti oi ns
US af cli ti . y
UGD eH altch are plc.
ni Asefih ld , Auq li ant and aSh rp .
UDG Healthcare plc 03
Annual Report and Accounts 2015
aM rek t pO portunti y
An exciting market,
Outsourcing
great opportunities
Our clei nts are outsourcni g
more twi h ef ew r partners
ni ternatoi nally
eH altch are spendni g li w l contni ue to ni crease oev r teh
conim g ey ars , ni creasni g to 1$ .3 trli loi n lg oab ll y y b 201 . 9
ah P ram ceutci al sales , am rek tni g and pacak nig g outsourcni g
si eov lniv g due to cah nnig g product portof loi s and cah nnig g
operatoi nal om dels ni teh oib pah ram , deciv e and eh altch are
ni dustrei s . ehT se dny acim s are creatni g sng i cif i ant
opportunti ei s of r G D U eH altch are and ti s dsiv i oi ns .
ehT rG oup si ew ll placed to capti alsi e on teh se trends . Increase in new
product approvals
TRENDS DRIVE NEED FOR INTERNATIONAL
REACH AND SECTOR EXPERTISE
Durni g 2015 pah ram ceutci al copm anei s ni creasni gl y turned to lareg , nI creased reuq ri eem nt
ni ternatoi nal sercvi e prodvi ers ni teh ri searc h of r epx ertsi e , lf elib ix ti y of r um lt-si taek oh lder
and conssi tenc y o f uq alti y and copm lai nce across teh ow rld . Wti h um lt-i
countr y coem rcai lsi atoi n deals ni creasni g and a desri e to pmi leem nt and um lt-icah nnel
ni noav toi ns rf o m one am rek t across teh clei nts’ coem rcai l of otprni t , coum nci atoi ns, especai ll y
sercvi e prodvi ers owh can prodvi e ghi h standards o f uq alti y and of r specai lt y products
copm lai nce across teh am oj r am rek ts are trh nivi . g
Teh re ah s eb en an acceleratoi n ni ne w om lecular entti y approav l
ni recent ey ars as a result o f ne w tecnh oloegi s ni teh researc h and
deev lopem nt process . rP oduct approav ls are ni creasni g of r ne w
of rum latoi ns and of r specai lt y dsi eases , and as suc ,h coem rcai lsi atoi n
reuq ri es sopsih tci ated packangi g and coum nci atoi n solutoi ns . Global healthcare
Serialisation o f pah ram ceutci al products si drnivi g uf rteh r consoldi atoi n spend to increase to
noi e vf psatecdkangi ni g o tueh stseo tuerccnh ni o g tloegi tseh . lWih sec eaem ler ngi p g lam arey ek rts , niah cev l uendojni e yg aSh dr p , owh ah ev SReraida lmisaotrieo nabout $1.3 trillion by 2019
sgni cfi ant ni ev stem nt and epx loratoi n , teh estalb si eh d am rek ts o f teh serialisation
US , Europe and aJ pan retani a donim ant sah re o f teh gloab l eh altch are on page 16.
spend . UGD eH altch are si ew ll placed ni teh se am rek ts trh ou gh aSh rps’ U S and UE ream ni
presence ni teh US and Europe and Asefih lds’ presence ni teh US , lareg st am rek ts
Europe and aJ pan.
Teh US am rek t ni partci ular ream ni s stratecgi all y pmi ortant of r ob t h
pah ram ceutci al copm anei s and outsource sercvi e prodvi ers . Teh
susb tantai l reev nue dereiv d rf o m specai lt y em dci ni es si drnivi g ni creased
of cus rf o m pah ram ceutci al clei nts , ob t h ni supportni g eh altch are
proef ssoi nals to di entfi y patei nts owh are approprai te of r treatem nt ,
and supportni g patei nts and teh ri carers to ensure teh y understand
teh ri dsi ease and oh w to taek teh ri em dci ni es . eivG n teh copm letix y
o f specai lt y and rare dsi eases and teh deleiv r y em cah nsi sm o f am n y Specialty disease
treatem nts , am n y o f ciwh h are ni ej ctalb e , teh re si an ni creased of cus on management
sopsih tci ated coum nci atoi ns and um lt-icah nnel support , tah t prodvi e
sercvi es ‘eb oy nd teh pli l . ’ Teh se sercvi es ni ov lev sales people , clni ci al dominates spend in US
educators (ob t h ni person and reom tel ) y avi contact centres , and onlni e
support and engaeg em nt tools . UGD eH altch are si a am oj r plaey r ni
teh se am rek ts and si no w ew ll placed to support clei nts twi h an extenseiv Specai lt y represents
raneg o f eh altch are sercvi es.
approx . 1 % o f prescrpi toi ns
1So urI McS Inesst: itute of r Healthcare Inof ram tci s , Ma y 2015 ; I M S Healt h, Natoi nal Sales eP rspectiev s , December 201 ;4 ub t 30> % o f dru g
constant US$ used. spend ni US
2 I MS Marek t Prognossi Ma y 2015 ; at e-amx nufacturer prci e leev ls , not ni cludni g reab tes and dsi counts .
Contani s audited + unaudited data . US$ used of r Argentni a , eV nezuela , gNei rai & Ukrani e due to yhperni flatoi n.
3 oF recasted.
4 I M S Healt h, Natoi nal Sales eP rspectiev s , June 2015.
04 UAnDnGu aHl Reaelpthocrat raen dp lAc ccounts 2015
Strategic Report Directors’ Report Financial Statements

2005 2015 Future
Less outsourcing Increased Preferred providers
but w it h more outsourcing for multi-countr y
partners wit h less partners deals
New molecular entities launched globally 2005–2014 1 New brand spending growth US$bn 1
50 30
2.0
21
13.4
25
40 12
17 9 17 20
11
30 15 12
16
9 13
9 14 15
1.4
1200 512 16 8 5 413 8 180 714 12 11 E xsi tni g mecah nsi m 10 061..7173 12107..902 21025..3603 20126..1380 83.18 mO VHeItriV headrlci hesni peeasctitai si lt y
7 7 5
6 O rpah n Oncolog y
Ne w mecah nsi m rT aditoi nal
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 2010 2011 2012 2013 2014
Total global spending on drugs will reach $1.3 trillion by 2019 2
1,500 7% 6% 5% 3% 5% 8% 4–7% 3–6% 3–6% 3–6% 3–6%
EU 1,200
US $155bn
$373bn 900
600
300
0 2009 2010 2011 2012 2013 2014 20153 20163 20173 20183 20193
Global sales
Hepatitis, diabetes, oncology drive spending growth – US spending growth by therapy area and segment (MAT June 2015) 4
Viral Hepatitis $9.6
Diabetes $8.4 Patent Expiries
Oncology $5.8
Generic
Autoimmune $5.6
Protected Brands
Multiple Sclerosis $2.7
HIV Antivirals $2.1 New Brands
Respiratory $1.8
Nervous System $1.3
Anticoagulants $1.3
Vaccines $1.3
Ne w rb ands
GI Products $1.2 P rotected brands
Dermatologics $1.2 Generci
aP tent expri ei s
UDG Healthcare plc 05
Annual Report and Accounts 2015
Sales US$bn
Our Strategic Model
Creating value...
UDG Healthcare plc is a leading international provider of services to the
healthcare industry. The Group is organised and managed in three separate divisions,
each focused on providing a specific area of specialist services to healthcare companies.
• � � � � � � � � - � � � � � � � � �
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How we create value What makes us different
Our strategy is to capitalise on an increasing trend by We strive to create strong market offerings which can provide clients
pharmaceutical, biotech and medtech companies to outsource with a range of specialist capabilities within each of our areas of operation.
non-core and specialist activities on an international basis. We work in partnership with the client to create a bespoke solution to
To achieve this we provide specialist skills and technical best address their objectives. We operate with a quality and governance
capabilities to clients across local and international markets. framework which reflects the industry standards and allows clients to
outsource with confidence.
06 UAnDnGu aHl Reaelpthocrat raen dp lAc ccounts 2015
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Strategic Report

...Growing sustainably
The strategy of the Group is to focus on maximising and growing shareholder value
from outsourced commercialisation services, by capitalising on its existing strong market
positions, driving higher levels of growth and profitability through a combination of organic
growth supplemented by strategic acquisitions, which will drive increasing
returns on capital employed for the Group.
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People at the core Delivering value
Attracting and retaining talented leaders is essential for Successful delivery of our strategy will result in increased
UDG Healthcare to sustain its growth model. shareholder value through share price appreciation and
dividends. Disciplined financial management and cash
generation will allow for ongoing reinvestment in the
business to sustain the growth model and capitalise
on the opportunity to grow our services.
Annual ReporUt DanGd HAcecaoltuhnctasr 2e 0p1l5c 07
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ahC ri am ns’ tS ateem nt
Transformation
and transition
tS ron g orag nci rg owt h aceih ev d , a transof ram toi nal dsi posal arg eed
and a eih C f eEx cutevi transti oi n announced ni a ub s y ey ar.
Teh ey ar to 30 Septeebm r 2015 ah s rb outgh ev r y sgni cfi ant eW antci pi ate a som ot h transti oi n , ub t ah ev also agreed
progress ni teh oj urne y o f transof ram toi n I ah ev eb en twi h aLi m tah t eh lwi l ream ni as a consultant and Board
artci ulatni g ni teh se reports oev r teh past seev ral ey ars . em ebm r untli Septeebm r 201 6 to retani sih stratecgi ni stghi
nI 201 ,4 ew sold our sah re o f our UK dsi trubi toi n ub sni ess , as ew plan teh reni ev stem nt o f teh capti al rf eed trh oug h
and ni our stratecgi plannni g ew ah d di entefi d tah t teh locgi teh MceK sson transactoi n.
o f retani ni g our rI si h dsi trubi toi n and owh lesale ub sni esses
aw s ni creasni gl y uq estoi nalb e , despti e teh m eb ni g teh 2015 FINANCIAL PERFORMANCE AND DIVIDEND
of undatoi n o f teh rG oup . Sellni g teh ‘af lim y sli ev r ’ si neev r eTh ek y of cus o f our strateg y ah s eb en to deev lop ub sni esses
an eas y decsi oi n and eb ni g teh clear am rek t leader si rarel y ciwh h can dreiv stroneg r organci growt .h lWi h e 2015
a ab d tnih g, ub t sgni cfi ant cah neg s ni teh rI si h am rek t , ah s seen ecx eptoi nal currenc y om ev em nts ciwh h ah ev
dreiv n yb teh nfi ancai l pressures on teh rI si h eh alt h syste ,m sgni cfi antl y ob osted teh eh adlni e growt h rates , ew are
teh donim atoi n o f ni ternatoi nal am rek ts yb gloab l plaey rs , ev r y pleased to ah ev aceih ev d a constant currenc y growt h
and teh ni creasni g gloab lsi atoi n o f teh pah ram ceutci al o f 9% ni aduj sted EPS .
suppl y cah ni , connvi ced us tah t teh se ecx ellent ub sni esses
ow uld eb eb tter owned yb a gloab l plaey r . An opportunti y As an acuq si ti eiv copm an , y and as a conseuq ence o f our
to of llo w tsih locgi arose sooner tah n ew ah d planned , transof ram toi n oj urne , y ew tend to ah ev ecx eptoi nal
ub t twi h an attracteiv ofef r eb of re us , ew ah d no dficfi ult y cah reg s or gani s ey ar-oney- ar . Last ey ar ew ah d an
recoem ndni g ti s acceptance to sah reoh lders at our ecx eptoi nal gani o f €51.4 lim loi n . sTih ey ar ew ah ev an
E xtraordni ar y eG neral Meetni g on 1 3 cO toeb r 2015 . ecx eptoi nal cah reg o f €1 .46 lim loi n arsi ni g am ni l y rf o m
Teh cah lleneg aeh ad si to reni ev st teh proceeds ni uf rteh r ni tegratoi n and ratoi nalsi atoi n actoi ns ew ah ev taek n ,
deev lopem nt o f our Asefih ld and aSh rp ub sni esses , and ew epx ect to ah ev a lareg ecx eptoi nal gani next ey ar
contni ue to dreiv stron g organci growt h and replace teh ewh n teh MceK sson transactoi n si consuam ted.
protfi s o f teh Suppl y ahC ni ub sni ess as soon as posslbi e
twi oh ut copm rosim ni g on our ek y ni ev stem nt crti erai Cas h eg nerated rf o m operatoi ns aw s €1 4. 3 7 lim loi n .
o f ( i ) stratecgi coeh rence , (i i ) stron g growt h potentai l Our return on capti al epm loey d (ROCE) as denfi ed
and i(i) i a return on ni ev stem nt o f 15 % twi nih trh ee ROCE on paeg 1 4 aw s 12 %,.6 up rf o m 11 .%8 last ey ar.
ey ars o f acuq si ti oi n. For more
information Teh ecx ellent results of r 2015 enalb e us to propose a
eTh transof ram toi n rf o m an rI si h & KU suppl y cah ni ub sni ess on ROCE, ddivi end ni crease o f 9% to 110. c . eW acknowledeg tah t
to an ni ternatoi nal pah ram ceutci al serciv es ub sni ess eb ag n turn to page 14. actual EPS growt h sgni cfi antl y ecx eeded 9% ub t as
ni 2000 tiw h teh acuq si ti oi n o f Aseif h ld , a teh n sam ll KU em ntoi ned , tsih extra growt h aw s dreiv n yb currenc y
oC ntract aS les uO tsourcni g ) O CS (ub sni ess . aTh t si also translatoi n efef cts , and ti ow uld tuh s eb ni approprai te
ehw n aLi m tFi eGz rald eb caem O CE and eh ah s speareh aded to ub li d our ddivi end ab se on tsih .
teh stratecig deev lopem nt o f teh rG oup trh ou hg teh last
15 ey ars , culnim atni g ni teh senim al sale o f our ornig i al core CORPORATE GOVERNANCE
ub sni ess . aLi m ah d ni dci ated to em ehw n I assuem d teh ahC ri Elseewh re ni tsih report ew dsi cuss ni om re detali oh w
ni 2012 tah t eh ddi not see smi h el f serniv g as O CE of r um c h ew ah ev og ne aob ut ensurni g proper og ev rnance , ub t ni
om re tah n 15 ey ars and ehw n teh cM eK sson transactoi n soh rt tsih ey ar ah s eb en ecx eptoi nall y ub s y of r teh Board.
aw s nif all y arg eed , eh tuh s decdi ed ti represented a peref ct Teh stratecgi deev lopem nt o f teh rG oup , successoi n
o‘b oe- k nd ’ to sih tenure . uD e to sih coem ndalb e openness , plannni g ciwh ( h teh owh le non-eex cuteiv Board engaeg s
teh oB ard ah d planned of r tsih , and aw s ni a posti oi n to ni , ) teh consdi eratoi n o f teh am oj r dsi posal and , latterl , y
uq ci lk y decdi e on teh apponi tem nt o f rB endan cM Atanm e , y teh O C E successoi n all reuq ri ed sgni cfi ant dsi cussoi n and
ohw ah d oj ni ed us as eihC f pO eratni g cfiO f er tow ey ars aog , deab te . I eb lei ev teh Board operated ev r y ew ll trh oug h
as sih successor rf o m Aprli 201 .6 soem o f teh om st pmi ortant decsi oi ns an y Board can
consdi er , none o f ciwh h ew re n‘ odded trh ough ’ ub t rateh r
eneg ndered eh alt yh deab te and deep consdi eratoi n o f
alternateiv s eb of re consensus aw s reaceh d.
08 UAnDnGu aHl Reaelpthocrat raen dp lAc ccounts 2015