Remuneration Committee Chairman Tony Rice

Tony Rice
Non-Executive Chairman


Dear Shareholder

On behalf of the Board, I am pleased to present Dechra's Governance report for the year ended 30 June 2018.


Dechra established a Code of Conduct in August 2009, which set out the standards of conduct to be adopted by all employees. However, in light of recent acquisitions and the growth of the Group, it was agreed that the Code of Conduct would be updated and relaunched. During the year, the Board approved the revised Code of Conduct, which encompasses the Group's Values, the standards of conduct to be adopted by all Dechra businesses worldwide and an overview of how to raise a concern. For further details please refer to Corporate Goverance.

Managing Governance

The Board recognises that excellence in corporate governance is important in order to generate and protect value for our investors. Our governance structure is designed to maintain effective control and oversight of our business whilst at the same time promoting the entrepreneurial spirit that has underpinned Dechra's success to date.

In our Corporate Governance Report we aim to provide a clear and meaningful explanation of how the Board leads the Group and discharges its governance duties, including how we apply the provisions of the UK Corporate Governance Code (the Code).


We have a strong and balanced Board with a range of complementary skills to support the strategic and operational direction of the Group. There were no membership changes in the Board or Committees during the year.

The Senior Executive Team (SET) has the responsibility for the overall leadership of the Group, driving the successful implementation and execution of the strategy. Further details of the SET can be found in Senior Executive Team.

Board Effectiveness

As Chairman, I am responsible for the leadership of the Board and ensuring its effectiveness in all aspects of its role. During the 2018 financial year we undertook an external evaluation of the Board, its committees and individual Directors. I am delighted to report that the overall outcome from the evaluation was that the Board and its individual Directors are performing effectively, and that the Board is dynamic and consistent with the organisational culture of openness. The findings from this evaluation are detailed in the Corporate Governance.

During the year the Board formalised its policy on diversity. The Board is proud of the diversity within the Group and monitors and reviews our position in this area. Further details can be found in the Nomination Committee Report.


We are required by the Code to include an assessment of the viability of the Company. This is covered in the Corporate Goverance. Further details can be found in the Audit Committee Report on how the Audit Committee have assisted the Board in reviewing the financial reporting and internal financial control effectiveness, and managing the relationship with the external auditor.


Our Remuneration Policy is designed to promote the long term success of the Group and to reward the creation of long term value to shareholders. Further details can be found in the Letter from the Remuneration Committee Chairman and the Directors' Remuneration Report.

Relations with Shareholders

The Annual General Meeting will be held in London on 19 October 2018 and I would like to invite our shareholders to attend. It will provide you with an opportunity to meet the Board and ask any questions that you may have in respect of the Group's activities.

Finally, should you have any questions in relation to the report, please feel free to contact me or the Company Secretary.

Tony Rice
Non-Executive Chairman
3 September 2018