Renishaw plc

Annual Repor t

2026

About us

Who we are

We are a world leader in sensors and

systems for measurement and manufacturing.

Our purpose

Transforming

Tomorrow

Together

We innovate with our customers to make

theproducts of the future, transforming

theircapabilities through unparalleled levels

of precision, productivity and practicality.

Our strategy

– Deliver innovation-led organic growth

through disciplined investment and

focused execution.

– Focus on attractive markets with durable

growth potential, enabled by long-term

customer relationships.

– Build a manufacturing technology

powerhouse by growing our market-

leading positions, scaling our emerging

product lines, and diversifying into

close-adjacent markets.

– Accelerate growth through targeted

acquisitions.

Our culture

Our founders set out to build a company that

stood apart – proudly independent, grounded

ina love of engineering and manufacturing,

with long-term thinking and never losing sight

of doing interesting, pioneering work.

This ethos is ingrained in our culture, which

isbuilt on our values of innovation, inspiration,

integrity and involvement. Thesevalues guide

the way we behave and the decisions we

make, both as a business and as individuals.

Where we operate

We are a global business. We work closely

withour customers around the world to solve

complex engineering and science challenges

and improve their products and processes.

We have three segments: Industrial Metrology

(IM), Position Measurement (PM), and

Specialised Technologies (ST). You can find

anoverview of these on pages 14 to 20.

We operate in three regions: APAC, EMEA

andthe Americas. Most of our R&D and

manufacturing takes place in the UK, and

wehave other major manufacturing sites

inIreland and India.

Sales

locations Revenue

APAC

30 £381.9m

(FY2025: £337.7m)

EMEA

20 £214.9m

(FY2025: £207.8m)

Americas

7 £219.0m

(FY2025: £167.5m)

CONTENTS

Contents

Strategic report

2 Chair’s statement

4 Chief Executive Officer’s review

7 Our strategy for long-term growth

10 Our business model

11 Our key performance indicators

14 Segment review

21 Chief Financial Officer’s review

23 Risk management

33 Viability statement

34 How we engage with stakeholders

37 ESG review

49 Climate-related Financial Disclosures statement

56 Non-financial and sustainability

informationstatement

Governance report

58 Directors’ Corporate Governance Report

60 Board of Directors

63 Executive Committee

71 Section 172 statement

77 Nomination Committee Report

84 Audit Committee Report

90 Directors’ Remuneration Report

122 Other statutory and regulatory disclosures

125 Directors’ responsibilities

Financial statements

128 Independent Auditor’s Report

139 Financial statements contents

140 Consolidated income statement

141 Consolidated statement of comprehensive

incomeand expense

142 Consolidated balance sheet

143 Consolidated statement of changes in equity

144 Consolidated statement of cash flow

145 Notes (forming part of the Consolidated

financialstatements)

185 Company balance sheet

186 Company statement of changes in equity

187 Notes to the Company financial statements

Shareholder information

198 10-year financial record

199 Glossary

200 Shareholder information

We use abbreviations and trademarks within this document.

Forbrevity, we don’t define or identify these every time they

areused; please refer to the glossary on page 199 for this

information. In our narrative commentaries in this report,

asanexample, FY2026 means the financial year ended

30 June2026. Other dates in our narrative commentary,

suchas2026, refer to the calendar year.

FY2026 financial highlights

Record year with accelerating revenue

growth and higher operating margins

£815.8m

Revenue

(FY2025: £713.0m)

14.4%

17.3%

Revenue growth at actual/constant exchange rates

— Strong demand from customers in semiconductor

and aerospace and defence sectors

— Significant growth from emerging product lines

18.7%

Adjusted operating profit margin

(FY2025: 15.7%)

— Strong operating margin improvement with all

segments nowprofitable at this level

— Cost reduction and revenue growth offsetting

adverse currency impact and impairments

£168.0m

Adjusted profit before tax

(FY2025: £127.2m)

Statutory profit before tax £150.0m

(FY2025:£118.0m)

79%

Adjusted cash flow conversion from

operatingactivities

(FY2025: 91%)

— Lower capital expenditure

— Increase in working capital to support growth

17.5%

Return on invested capital

(FY2025: 13.2%)

— Higher profit after tax, and stable levels

ofinvested capital

— Benefiting from previous investments

inmanufacturing

82.0p

Total dividend per share for the year

(FY2025: 78.1p)

— Excluding special dividend of 70.0p per share

Note 29, Alternative performance measures, defines how each

ofthese measures is calculated.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Chair’s statement

This has been a strong year for Renishaw, with

growing demand from key sectors driving record

sales and profit, despite the impact of ongoing

geopolitical uncertainty on international trade.

Thissuccess is a clear demonstration that Renishaw’s

strategy for long-term organic growthis working.

Atthe heart of that growth model isa strong focus on

innovation, which is helping the business to develop

more efficient, easier-to-use products that address

significant trends in our markets, while continuing

tosolve specific customerchallenges.

This year’s performance is also thanks to our talented

people, led by our Chief Executive Officer, Will Lee,

and his executives. The team and our people across

the world have reacted quickly to increased demand

from key markets, and shown great resilience and

agility in the face of supply chain pressures.

Todothis following the cost reduction programme

atthe beginning of the year istestament to their

commitment to the business, ourcustomers and

eachother, and I would like tothank everyone for

their achievements.

Continuing to evolve the Board

We made some key changes to the Board this year,

with John Shipsey appointed as our new Chief

Financial Officer and Executive Director in

April2026,after Allen Roberts stepped down in

December 2025. The Board and I would like to

thankAllen for his exemplary 46 years at Renishaw.

Also, my thanks toRob Macdonald, who served as

Interim Group Finance Director during this transition.

Rob has done an outstanding job during an extremely

important andbusy period for Renishaw.

Also in April 2026, I was honoured to accept the role

of permanent Chair of Renishaw and retain my role

asChair of the Nomination Committee.

In September 2025, we welcomed Camille Deer

tothe Board as a Non-executive Director. Like our

other founding family Board representatives, Non-

executive Director Richard McMurtry, and Observer

Ben McMurtry, Camille has approached the role with

considerable engagement, eager learning and

openness. She has also brought fresheyes and

excellent questions to the Board’s discussions this

year, reflecting the culture and valuesthat our two

founders, John Deer and the late Sir David McMurtry,

instilled in the business over many years. The Board

welcomed the formation ofa joint family holding

company in November 2025 and believes it gives

Renishaw a clear structure tobuild on David and

John’s legacy for long-termsuccess. For more

information see page 58.

I believe the Board’s evolution over the past two years

has strengthened our leadership at a time of changing

risks and opportunities in our global markets.

Anindependent review of the Board, conducted

onRenishaw’s behalf by Fidelio Partners in the year,

confirms my confidence and demonstrated that we

are working well together. This review also provided

recommendations on areas for improvement, which

we discuss in more detail on pages 81 to 82.

A clearer business structure to

accelerate growth

The Board has been impressed with the executive

team’s collaborative approach to responding tothe

rapid changes in customer demand this year.

While our performance reinforces the Board’s

confidence in Renishaw’s strategy for long-term

growth, we must ensure the business is agile

enoughto make the most of future opportunities,

whilenavigating markets that can be highly cyclical.

TheBoard has, therefore, supported the Executive

Committee’s work to reshape Renishaw’s structure

around three segments. The Board believes these

changes provide greater clarity and enable greater

efficiency across the business.

A strong Executive Committee and clearer

reportingstructure have had a positive impact

onBoard discussions, with a deeper focus on

keytopics, suchas strategy, organisation and

productivity. Thecreation of the Specialised

Technologies segment has been particularly helpful,

giving the Board a much clearer view of opportunities

and challenges in new or developing businesses.

TheBoard has also benefited from greater

engagement with our three regional presidents,

whoI’d like to thank for helping us better understand

the trends driving specific international markets.

At the beginning of the year, the Board oversaw the

implementation of acost reduction programme.

Recognising the programme’s impact on colleagues

across the Group, the Board received regular

updates on how the business has supported our

people during this period.

Renishaw plc Annual Report 2026

Strategic report

CONTENTS

A maturing approach to stakeholder

engagement

Our investors have welcomed Renishaw’s more

transparent reporting structure. Together with

ourstrengthened investor engagement programme,

which now includes in-person results presentations,

they see this transparency as a positive sign that the

business is evolving its approach to communicating

with key stakeholders.

This year we paid an interim dividend of 16.8p per

share (FY2025: 16.8p) and are proposing a final

dividend of 65.2p per share (FY2025: 61.3p),

resulting in a total dividend for the year of 82.0p per

share, a 5% increase on the previous year. In addition

to the final dividend, we have also approved a special

dividend of 70.0p per share as an interim dividend.

As well as our increasing engagement with investors,

Renishaw’s external profile is growing in other ways.

For example, this year Richard McMurtry, Will Lee

andI met with several key UK government department

officials, including through hosted site visits. These

meetings were an important opportunity to discuss

Renishaw’s role in the UK economy and industrial

strategy, aswell as to demonstrate some

ofourproducts.

It was also a pleasure to attend EMO Hannover

withthe founder families in September 2025.

Heldevery two years, this is a huge, five-day

manufacturing technology event. It was a great

opportunity to see our industry in action and talk

toRenishaw colleagues, business partners and

customers, some of whom have worked with us for

decades. These events give the Board a unique

insight into the business, and I was particularly proud

to be a small part of the launch of our Equator-X

gauge. Since then, Equator-X has gone on to become

one of our big success stories this year (see page 16).

I’ve also enjoyed spending time with many of our

UKengineering and manufacturing teams during

theyear. As Chair, and an engineer, I’m privileged

tosee many of the next-generation products in

development. My particular thanks to our three

business segment directors, Louise Callanan

(Specialised Technologies), Derek Marshall (Industrial

Metrology) and Steve Oakes (Position Measurement),

forintroducing me to our world-leading products,

engineers and scientists. My regular visits to our

largest manufacturing site in Miskin, Wales, have also

been exciting as volumes increased during the year,

and quality was enhanced by the use of our own

products in the production process.

Looking ahead

It has been a pleasure to work alongside my

colleagues this year, and Ibelieve we’re continuing

tobuild aBoard that blendsdeep experience in the

businesswith fresh perspectives. We will need more

ofboth in the coming year as we implement the

recommendations of the Board review, and continue

to support and challenge the Executive Committee.

Indoing so, I believe Renishaw can build on the

successes of the past year, while continuing to

navigate our customers’ changing needs and

stayingalert to the challenges and opportunities

wesee ahead of us.

Sir David Grant

Chair

22 September 2026

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Accelerating demand in many of our markets this

year, including the semiconductor and aerospace

and defence sectors, has helped deliver strong

revenue growth across our segments and regions,

with particular progress in our emerging product

lines. This performance reflects the strength of

ourstrategy forlong-term organic growth. It also

highlights the significant benefits of our commitment

to, and investment in, innovation to address large

structural trends, such as increasing precision in

manufacturing processes and rising industrial

automation to tackle skills shortages.

There have been challenges along the way,

withflatdemand in some of our traditional markets.

Throughout, our people have shown great resilience,

while continuing to navigate geopolitical uncertainty

and increasing trade protectionism, and supporting

our cost reduction programme. This is exemplified

byoursales, service and manufacturing teams,

whoresponded quickly to changing customer needs.

Iwould like to join Sir David in thanking all our

peoplefor their commitment this year.

Strong financial performance in FY2026

Turning to this year’s headline figures, at a Group

level, our total revenue for the year was £815.8m,

compared with £713.0m in FY2025. Revenue at

constant exchange rates*, excluding the impact

offorward contracts, increased by 17.3%.

This is our first year of reporting on our three

segments: Industrial Metrology (IM), Position

Measurement (PM) and Specialised Technologies

(ST). We saw solid growth in IM, with a substantial

proportion coming from our emerging metrology

products. In PM, we delivered strong sales growth

from our established encoder product line, and

weare seeing pleasing opportunities in our emerging

encoder products, which allow us to address

newmarkets.

Additive manufacturing (AM) products were the

keydriver of performance improvement in ST.

Aswellas achieving multiple machine orders from

existing customers, we are gaining market share,

particularly in aerospace and defence. We explain

our new structure and give more performance details

in our Segment review on pages 14 to 20.

Each of our three regions had a positive year.

InAPAC, revenue grew, by 17% at constant

exchangerates, to£381.9m, mainly driven by

demandfor position encoders from semiconductor

and electronics manufacturing equipment builders.

The semiconductor market undergoes multi-year

business cycles, and our sales and manufacturing

teams have worked hard to capitalise on thecurrent

AI-driven upturn. Demand was also strong in the

region for our Equator shopfloor gauging systems,

particularly from consumer electronics subcontract

manufacturers. Revenue forthe Americas grew,

by35% at constant exchange rates, to £219.0m,

ledby strong demand forhigh-value capital

equipment sales, suchas our 5-axis CMMs and

ourmetal AM machines. The aerospace and defence

and power generation sectors were themain drivers

here, with the automotive sector strengthening in the

second half ofthe year. InEMEA,revenue grew,

by3% atconstant exchange rates, to £214.9m,

withgood growth in revenue for AMmachines and

position encoders, while demand for IM products

waslower, especially in the automotive sector.

Adjusted* profit before tax for the year was £168.0m

(FY2025: £127.2m). Adjusted earnings per share

was179.5p (FY2025: 137.8p). Adjusted measures are

the ones the Board uses to measure our underlying

trading performance. Statutory profit before tax was

£150.0m (FY2025: £118.0m), leading to Statutory

earnings per share of 163.5p (FY2025: 115.2p).

Readmore in the Chief Financial Officer’s review

onpage 21.

Chief Executive Officer’s review

Segment

FY2026

revenue

£m

FY2025

revenue

£m

Variance at actual

exchange rates

Variance at constant

exchange rates

Industrial Metrology 447.4 430.6 3.9 6.7

Position Measurement 260.9 207.4 25.8 29.2

Specialised Technologies 107.5 75.0 43.1 45.8

Total 815.8 713.0 14.4 17.3

*Note 29, Alternative performance measures, defines how each of these measures is calculated.

Renishaw plc Annual Report 2026

CONTENTS

Strong strategic progress underpinned

by innovation

Everything we do at Renishaw is guided by our

purpose of Transforming Tomorrow Together and

underpinned by our strategy, which we set out on

pages 7 to 9. This year’s performance reflects

theprogress we’re making against our three strategic

priorities – growing our existing markets, increasing

the value of the technology that we sell, and extending

into new, high-growth markets – asIexplain below.

Our long-term commitment to innovation is a key

driver across these priorities, helping us to unlock

theopportunities that arise from thebig structural

trends Imentioned earlier, and, inturn, to deliver

ourstrategy.

Growing in our existing markets

We saw strong growth in our existing markets this

year driven by one of the biggest trends shaping the

world around us. The exponential growth in demand

for AI processing has triggered unprecedented

demand for semiconductors. Since our encoders are

used across the semiconductor production process,

this represents a sweet spot for Renishaw because

itrelies on increasing levels of precision and

automation, and we have worked hard to win more

customers that supply this market. Our established

calibration product line has also benefited from

growing demand for increasingly precise machinery.

We continue to see rising competition, particularly in

China, from rivals offering ‘good enough’ products at

attractive prices. We are responding by developing

strategies to compete in entry-level markets.

Increasing technology value

We also made strong progress against our second

strategic priority, where we aim to increase revenue

by capturing a greater proportion of the investment

made by our end-user customers. Market response

toour new Equator-X 500 gauging system has been

really positive, with significant orders secured

precisely because it addresses the common

shopfloor challenges we know customers are

grappling with.

Our innovation in software is also helping our

progress in increasing the value of the technology

wesell. We are developing solutions that make

iteasier for customers to use our products, and

alsomake it easier for us to sell our higher-value

technology systems. For example, this year we

launched our new MODUS IM Equator software to

help Equator and Equator-X gauging system users

maximise productivity. This software is our latest

stepin improving the functionality and customer

experience of our metrology systems.

In November 2025, I had the pleasure of attending

the launch of our new AM software at the Formnext

showin Frankfurt, Germany. Called LIBERTAS,

thesoftware enables customers to precisely print

complex shapes without the need for additional

supports. The customers I spoke to at the show were

really excited about this development, many telling

me that together with our recent TEMPUS technology,

we’ve leapfrogged the competition here. Increased

interest in AM from sectors including consumer

electronics shows the potential for Renishaw to

expand into new, high-growth markets for this line,

and validates the long-term investment we’ve

madehere.

We’re also seeing strong initial interest for our new

Strada Intelligent Raman Microscope. Its entirely

motorised system, significantly faster auto-alignment

capabilities, remote access options and seamless

workflows, means industrial and multi-user

laboratories can now access advanced

chemicalanalysis.

Extending into new markets

Our third strategic priority is to diversify into close-

adjacent markets where we have strong market

understanding and brand awareness. Our recently

launched ASTRiA inductive encoder is designed to

give precise position feedback in harsh operating

environments and is already proving popular in

arange of markets, including aerospace and

defence. This is a great example of where our

focuson R&D and a new minimum viable product

approachhas helped bring a product to market

faster, allowing us to take advantage of an exciting,

sizeable opportunity that we were not previously

ableto address.

Understanding and addressing

customerneeds

We’re proud of the long-term relationships we’ve

builtwith customers over the years. It’s always

apleasure when I get the chance to meet them,

whether visiting their factories or at the various

tradeevents that I attend during the year across

ourthree regions. Understanding our customers’

challenges is an important aspect of how we

developthe innovative solutions to address their

needs, and something that our sales and

engineeringteams do throughout the year.

One of the biggest emerging conversations is

aroundthe impact of AI. This is an area of strategic

importance toRenishaw due to our role in supporting

the manufacturing of advanced semiconductors,

andwecontinue to develop the next generation

ofposition encoders to meet the needs of this

demanding sector. AI also affects our business in

other ways, helping our people to innovate and be

more productive, while also heightening cyber risks.

Find out more

about our

MODUS IM

software and

Equator-X

gauging system

Find out more

about our

ASTRiA

inductive

encoder

Find out more

about our

Strada Raman

microscope

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Chief Executive Officer’s review continued

A simpler, more focused Renishaw

While the benefits of innovation are clear in this

year’sperformance, our new structure has also

helped, with three segments that are more closely

linked to our customers and end-user markets.

Aswell as giving investors a better understanding

ofour business, thechanges support the continued

delivery of our strategy, with a single leader for

eachsegment accountable for every stage of

productdelivery.

The new structure is having an impact on the

Executive Committee as well, with our new segment

directors, Louise Callanan (ST), Derek Marshall (IM)

and Steve Oakes (PM), bringing renewed focus to

ourdiscussions. At the same time, our two newest

colleagues, Group Human Resources Director,

ClareNicholls, and Chief Financial Officer,

JohnShipsey, have brought fresh external

perspectives, complementing the deep expertise

ofother Committee members to help plan the next

phase of our growth and innovation.

We continue to manage our business portfolio

tofocus on core products. During the yearwe

completed the closure of the drug delivery aspect

ofour neurological product line and we are

continuingto seek a new owner for the remaining

neurosurgical activities.

Responding to employee feedback

While restructuring the business has brought many

positives, I know this has not been the easiest year

for colleagues. The combination of our cost reduction

programme, followed by the rapid rise in demand for

some of our products, has created extra pressure

onour people and processes. So I am particularly

pleased that so many employees responded to our

latest engagement survey. A 78% participation rate

isgood in any year, as was the 85% who responded

positively when asked if they feel proud towork

forRenishaw.

We’re addressing several key points raised in

thesurvey, including helping people feel better

connected toourstrategy, developing clearer

careerpathways, and making it easier for them to

dotheir job so that we can accelerate our growth.

Simplifying our processes to

accelerategrowth

We are committed to simplifying and clarifying our

operating model – our blueprint for what we do and

how we work – while retaining what makes us special.

Our new One Renishaw initiative is focused on

developing common processes in our sales, logistics

and finance functions, supported by our new global

ERP solution, Microsoft Dynamics 365. While we

havefaced challenges with deploying this system,

our dedicated team has worked incredibly hard and

hasdone afantastic job supporting our customers

during theyear.

Refreshing our ESG strategy

I’ve spent time this year working with colleagues

torefresh our environmental, social and governance

(ESG) strategy. The purpose of this review was to

refine ourgoals, remove outdated elements and

streamline our targets while retaining the ambition of

our original strategy. We explain these changes and

provide an update on ourprogress in our ESG review

on pages 37 to 48. We continued to make progress

against our strategy this year, most notably by

reducing the emissions intensity of the aluminium

andsteel we bought in FY2026 by more than 20%

(versus FY2025), againsta target of 15%.

Looking ahead

We made excellent progress in FY2026, with growth

in all three segments. We are well positioned in

attractive markets that offer substantial through-cycle

growth opportunities. Our innovation-led strategy to

deliver outperformance is also delivering results, with

significant progress in our emerging product lines.

FY2027 has started strongly as we continue to benefit

from the current upturn in demand for semiconductor

manufacturing equipment. We expect further strong

progress on revenue and profit in the year ahead.

Will Lee

Chief Executive Officer

22 September 2026

Renishaw plc Annual Report 2026

CONTENTS

Our strategy for

long-term growth

We are building a manufacturing technology powerhouse, and our strategy aims

to fulfil our purpose of Transforming Tomorrow Together by creating long-term

value forall our stakeholders. We target an expanding range of high-growth

markets for our portfolio of sensor- and software-enabled systems products.

Our strategy: driving consistent

outperformanceseepage 9

Growing in

existing markets

Increasing

technology value

Extending into

new markets

STRATEGIC

PRIORITIES

Fitment levels,

cross-sales and

new customers

Systems, software

and smart

factorysolutions

Robotics

andindustrial

automation

Our ESG strategy see page 37

Our strategy is underpinned by a robust

risk management framework.

See pages 23 to 32.

We measure our progress against KPIs

thatreflect financial and non-financial

performance. See pages 11 to 13.

Manufacturing

machine

performance

Electrification, AI

anddigitalisation

Industrial

automation

Decarbonisation

and supply chain

resilience

Our opportunity: markets growing atmore than

a year see page 8

£7bn

Total addressable

market

Future

R&D in

attractive

close-adjacent

markets

Emerging

Rapid share

gain to grow

profit %

Established

Number 1 or 2

market share

Profitable and

growing

PORTFOLIO

GROWTH

1 Estimated weighted average through-cycle demand growth of Renishaw’s addressable markets.

2 Unaudited management estimates from a combination of external market research and our own market knowledge.

3 Emerging portfolio products operate in more fragmented markets with significant opportunity to gain market share; they are typically below the scale needed

to generate our target level of return.

4 Established portfolio products have a strong, profitable market position (number one or two market share) in growing markets.

FOCUSED

EXECUTION

Commercial

focus

Innovation Supply chain

Targeted

acquisitions

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Our strategy for long-term growth continued

Our opportunity

We pursue innovation-led growth in emerging and established

markets with acombined addressable value of £7bn, and where

manufacturing and societal trends contribute to attractive

through-cycle growth rates of at least 5%.

MANUFACTURING TRENDSCHANGES IN WIDER SOCIETY

Manufacturing machine performance

A relentless drive to improve the precision,

speedand capability of manufacturing

equipment to make the advanced products

ofthe future.

Industrial automation

Industrial processes are becoming more

automated as manufacturers grapple

with skilled labour shortages and aim

tobecome more productive.

Electrification, AI and digitalisation

As the world becomes more electrified and

connected, and as AI’s capabilities expand,

weare seeing sweeping changes in the

transportation, electronics and

semiconductor industries.

Decarbonisation and supply

chainresilience

The drive to decarbonise and secure their

supply chains is forcing manufacturers to

rethink how they procure, design, make

and support future products.

Established

products:

Metrology

sensors and styli

Open encoders

Calibration

Spectroscopy

Emerging

products:

Metrology

systems and

software

Additive

manufacturing

Enclosed

encoders

Industrial

automation

Inductive

encoders

£7bn

Total addressable

market

Our opportunity: well positioned in marketsgrowing at more than 5% a year

Renishaw plc Annual Report 2026

CONTENTS

Our three strategic focus areas

To make the most of the opportunities presented by our attractive growth markets,

we’ve identified three strategic priorities to help us create value and grow market

share ahead of ourcompetition.

Our focus on these areas is set within a rigorous risk management framework,

whichincludes our approach to climate risk (see page 26), and is underpinned

byourESG strategy (see pages 37 to 48).

Our strategy: driving consistent outperformance

STRATEGIC

PRIORITY

Growing in existing markets Increasing technology value Extending into new markets

WHY IT DRIVES

PERFORMANCE

We aim to increase revenue per

machine tool, capturing more ‘share

of wallet’ from machine tool builders

by driving up probing fitment levels

and offering higher-value sensors.

We also aim to win new machine

builder customers, particularly in

position encoders.

By building systems sales we

capture agreater proportion of

end-user investment and access

long-term servicerevenues.

We also aim to expand our software

offering, which enables systems

sales and creates a revenue stream

inits ownright.

We aim to diversify into close-

adjacent markets, seeking

opportunities where wehave market

understanding and brandtraction.

HIGHLIGHTS FROM

FY2026

Strong growth in demand for

optical encoders in the

semiconductor sector.

Introduced 1.5D optical encoders

forprecision motion applications,

such as advanced packaging

andhybrid bonding, and a next-

generation laser encoder range

providing ultra-precise motion

controlfor wafer inspection.

Developed a new generation

ofmachine tool probing systems,

enabling advanced on-machine

metrology for high-value components,

and enhanced 5-axis motorised

probe heads for CMMs.

Accelerated adoption of AM

supported by platform innovations,

including our patented TEMPUS

technology, which offers production

speeds up to three times faster than

conventional single laser systems,

and LIBERTAS, which enables

advanced laser control.

Continued to develop our range

ofshopfloor flexible gauges

withthecommercialisation of

ourEquator-X gauge and our

MODUSIMEquator software.

Strong growth in demand for our

ASTRiA inductive encoders, which

complement our magnetic andoptical

encoders to offerrobust andaccurate

position measurement inharsh

environments, including robotics,

aerospace and defence, and

medicaldevices.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Our resources Delivering value for...

Our business model

We work with our customers to understand their technological challenges, then design,

manufacture and sell innovative products and processes to solve them.

Our business model helps us focus our resources and make the most of our strengths

todeliver value for all our stakeholders.

Customer relationships

We’re able to invest in long-term relationships with our

customers. This helps us to understand their needs and

design solutions to solve their challenges.

People

Our team of more than 5,200 talented people around

theworld are committed to delivering our purpose

andstrategy.

Supplier relationships

Our global and local suppliers provide us with the

high-quality components and materials we need,

aswellassupporting our infrastructure and operations.

Research and development

Our strong IP portfolio and significant commitment to

R&Dexpenditure help set us apart from competitors

anddeliver long-term value.

Financial resources

We’ve funded our growth and infrastructure by reinvesting

our profits. We also have a strong cash position, helping

usto fund future development and deliver our strategy.

Our customers

— £114m spent on developing new products and improving

ourexistingproducts.

— 57 locations worldwide providing local customer support and

technicalexpertise.

Our shareholders

— Total dividends of £59.7m for the year (FY2025: £56.9m), excluding

special dividend of 70.0p per share.

— Continued evolving our investor relations engagement,

includingintroducing in-person results presentations in London.

Our people

— £327m in salaries, bonuses, social security and pensions contributions.

— Continued developing functional competency frameworks to support

talent reviews and succession planning.

Our suppliers

— £20m committed to global capital expenditure projects.

— More than 600 global suppliers for direct goods and services

toUKmanufacturingoperations.

Our communities

— Ongoing education outreach programme reached around

12,500students.

— £0.3m in charitable donations during the year.

Our planet

— 7% reduction in Scope 1 and 2 emissions versus FY2025.

— Self-generated 8.5% of our global electricity consumption through

renewable sources.

Innovative

engineering

Using our understanding from

ourcustomers andworld-class

engineering, wedesign

innovative products that meet

these challenges andprovide

precision, productivity

andpracticality.

Routes to market

We have local support and

technical experts based in

ourmain markets, helping

ustorespond quickly to

ourcustomers’ and

endusers’needs.

High-quality

manufacturing

We then manufacture the

majority of these products

ourselves, while sub-

contracting manufacture of

simpler versions of some

patented products.

Customer

needs

We work closely with our

customers to understand

the challenges they

faceinmanufacturing,

materialsanalysis

andhealthcare.

Renishaw plc Annual Report 2026

CONTENTS

Through-cycle revenue growth %

9.5

2.4

3.8

7.6

6.9

FY2022 FY2023 FY2024 FY2025

FY2026

Why we measure this

Understanding revenue growth through cycles in our key markets

helps us to add context to our performance and focus on

sustainable growth.

How we measure this

Compound annual revenue growth rate over a rolling

five-yearperiod.

How we performed

Key markets have strengthened and our emerging product lines

continue to grow. Our IM segment has grown at an average rate

of more than 5% over this timeframe, while both our PM and ST

segments have grown more than 10%.

Five-year revenue compound annual growth rate Target range

Revenue £m

815.8

713.0

691.3

688.6

671.1

FY2022

FY2023

FY2024

FY2025

FY2026

Why we measure this

Revenue growth helps us to assess the relevance of our

products for solving customer problems. It also indicates growth

in market share and helps generate profits, which we reinvest in

the business and use to pay dividends to our shareholders.

How we measure this

Revenue generated from operations, at actual rates of exchange.

How we performed

Revenue grew to a record £815.8m, an increase of 14.4% from

FY2025 at actual exchange rates and 17.3% at constant exchange

rates. We achieved particularly strong growth in sales of position

encoders and additive manufacturing systems, while demand

formetrology sensors and spectroscopy systems wasflat.

Our key performance indicators

We use financial and non-financial key performance indicators (KPIs) to measure

progress against our strategy.

Adjusted operating profit & Adjusted profit before tax £m

168.0

152.9

127.2

112.3

122.6

108.7

141.0

130.4

163.7

161.4

FY2022

FY2023

FY2024

FY2025

FY2026

Why we measure this

These measures help the Board understand the underlying

trading performance of the Group.

How we measure this

Adjusted operating profit and Adjusted profit before tax are

defined in Note 29 on page 180.

How we performed

Adjusted operating profit increased by 36.2% to £152.9m and

Adjusted profit before tax increased by 32.0% to £168.0m this

year. Both metrics were boosted by increased margin from higher

sales and our cost reduction programme.

Adjusted operating profit Adjusted profit before tax

Adjusted operating profit margin %

24.1

18.9

15.7 15.7

18.7

FY2022 FY2023 FY2024 FY2025

FY2026

Why we measure this

As a relative rather than absolute measure, this helps us assess

our financial efficiency. Our target is to exceed 20%.

How we measure this

Adjusted operating profit (see Note 29 on page 180),

asapercentage of revenue.

How we performed

We achieved a 3.0%pt improvement in this metric this year.

Currency headwinds of 2.2%pt and impairments of 0.7%pt

wereoffset by 5.9%pt of organic margin improvement from

acombination of cost reduction and operating leverage,

supportedby our 17.3% constant currency revenue growth.

Wecontinue to focus on productivity and organic growth

todriveour margin into our target range.

Adjusted operating profit margin Target range

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Our key performance indicators continued

Total engineering costs £m

107.8

100.9

115.7

106.8

98.1

100.6

90.2

85.8

78.6

FY2022

FY2023

FY2024

FY2025

FY2026

Why we measure this

Investing in engineering is fundamental to our growth, helping

usto develop innovative new products and evolve our existing

products to maintain their competitiveness.

How we measure this

Annual expenditure on engineering, including R&D that has been

capitalised in the year, and net of amortisation on capitalised R&D.

How we performed

Reduced spend following operating cost reductions during

theyear, excluding non-recurring costs relating to restructuring

(seeNote 4 on page 153). We continue to deliver new products

tomarket, with a strong pipeline of new products in development.

Included in Consolidated income statement Gross expenditure

Dividend per share in respect of the year pence

82.0

78.1

76.2

72.6

FY2022

FY2023

FY2024

FY2025

FY2026

Why we measure this

To track the underlying performance of the business and measure

how profit growth translates into improving shareholder returns.

How we measure this

Interim dividend paid in the year, plus the proposed final dividend.

These measurements do not include special dividends.

How we performed

We paid an interim dividend of 16.8 pence per share in FY2026

and the Directors propose a final dividend of 65.2 pence per

share. This would bring the overall dividend per share to

82.0 pence, 5% higher than the total dividend for FY2025.

In addition to the final dividend, we have also approved a special

dividend of 70.0p per share as an interim dividend.

Adjusted cash flow conversion from operating activities %

120

100

FY2022 FY2023 FY2024 FY2025

FY2026

Why we measure this

To assess our efficiency in converting our operating profitbefore

tax into cash and cash equivalents. Our target is toexceed 70%.

How we measure this

Adjusted cash flow from operating activities as a percentage

ofAdjusted operating profit. Adjusted cash flow from operating

activities is defined in Note 29 on page 180.

How we performed

This metric fell to 79% this year from 91% in FY2025, but remained

within our target range. This reduction was driven by an increase

in working capital to support rapid growth throughout the year.

Operating cash conversion ratio Target range

Return on invested capital (ROIC) %

26.0

18.4

13.6

13.2

17.5

FY2022 FY2023 FY2024 FY2025

FY2026

Why we measure this

This helps us understand how well we’re creating value from our

investments. Our target is to exceed 15%.

How we measure this

Adjusted profit after tax before post-tax net financial income,

asapercentage of invested capital. We have updated how

ROICis defined this year, resulting in prior year restatements

–seeNote 29 on page 180.

How we performed

We exceeded our ROIC target this year, improving by 4.3%pt to

reach 17.5%. This is due to higher profits after tax, offset by a small

increase in average invested capital.

Return on invested capital Target range

Renishaw plc Annual Report 2026

CONTENTS

Global voluntary employee turnover %

5.7

5.9

6.2

6.8

10.7

FY2022

FY2023

FY2024

FY2025

FY2026

Why we measure this

The success of our strategy relies on our people feeling that

Renishaw is a great place to work, grow and contribute.

How we measure this

The number of voluntary leavers (excluding voluntary redundancy

and mutually agreed severance, if applicable) in the year,

asapercentage of our total headcount.

How we performed

Voluntary employee turnover slightly reduced this year. This figure

excludes voluntary leavers under our cost reduction programme

during the year. We continue to pursue arange of activities to

promote employee engagement. Moreinformation can be found

on pages 34, and 43 to 46.

Statutory GHG emissions tCO

e per £m revenue

4.7

5.8

6.1

8.1

10.1

FY2022

FY2023

FY2024

FY2025

FY2026

Why we measure this

This helps us to ensure that we are doing business responsibly

and tracks our progress against our Net Zero targets.

How we measure this

Tonnes of Scope 1 and 2 (‘Statutory’) carbon dioxide equivalent

(CO

e) emissions from our operations, per £m of revenue, using

the market-based method. See how we calculate our data

onpage42.

How we performed

Our Net Zero strategy continues to reduce our GHG emissions/£m,

with a 19% reduction in emission per £m revenue in FY2026. While

thiswas largely driven by higher revenues this year, we were also

pleased to reduce our statutory emissions in absolute terms.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Industrial

Metrology

Measurement and control

ofprecision component

manufacturing processes

Routes to market:

– Probes and styli mostly

through machine builders

and distributors, plus

end-user projects and

consumables.

– CMM & gauging systems

and calibration products

mostly sold to end users.

Specialised

Technologies

Novel technologies in high

growth sectors

Routes to market:

– Primarily direct sales

toendusers.

Segment review

In July 2025 we organised our business into three segments – Industrial Metrology,

PositionMeasurement and Specialised Technologies – to bring together products with similar

end-user markets and demand drivers. Together, they help Renishaw pursue innovation-led

growth in established and emerging markets with a combined addressable value of £7bn.

Each segment director is now a member of the Executive Committee, supporting Renishaw’s

strategic focus and sharing examples of good practice from their part of the Group.

Below we provide an overview of each segment, followed by a deeper review of their markets,

opportunities and performance during the year throughout the rest of this section.

Position

Measurement

Precision motion control

ofrobots, machinery and

factory automation

Routes to market:

– Encoder sales mostly to

machine builders who

integrate encoders into

their equipment.

Share of Group

revenue

FY2026

revenue growth

(at constant fx)

Five-year revenue

growth rate

FY2026

adjusted

operating profit

FY2026

adjusted operating

profit margin

Addressable

market value

Industrial Metrology 55% 6.7% 5.5% £76.7m 17.1% £3.4bn

Position Measurement 32% 29.2% 10.0% £71.5m 27.4% £2.3bn

Specialised Technologies 13% 45.8% 12.1% £4.7m 4.4% £1.3bn

Revenue for FY2026

£4 47.4m

Revenue for FY2026

£260.9m

Revenue for FY2026

£107.5m

Renishaw plc Annual Report 2026

CONTENTS

Industrial Metrology (IM) is our largest segment,

making sensors, measurement systems and software

that allow customers to precisely measure machines

and machined parts, generate inspection reports and

control their production machines. Our products are

used throughout the production process – directly

onmetal-cutting machines, onthe shopfloor nearby,

and in quality assurance laboratories. Our calibration

systems are used to fine-tune the production and

set-up of precision machines, and to check their

continued operation in arangeof applications.

Ourindustrial automation products enhance the

accuracy and productivity ofrobots, which are

increasingly used within machining operations.

Our customers

Our customers work in key manufacturing sectors,

including aerospace and defence, automotive, and

consumer electronics, and rely on our products to

support highly repeatable, efficient processes to

make complex parts with tight tolerances. We provide

sensors tomanufacturers of machines that service

these sectors, as well as complete metrology systems

to end users. Because of our long track record of

innovation, reliable products and excellent support,

many of our customers have been working with us

fordecades. We’re proud of the close relationships

we have with them to help develop solutions that

meet their needs and commercial goals.

Our FY2026 performance

The segment saw solid growth this year, with good

performance in our APAC and Americas regions.

Revenue for IM products increased by 3.9% to

£447.4m at actual exchange rates (FY2025: £430.6m)

and was 6.7% higher atconstant exchange rates.

This year’s performance was underpinned by strong

year-on-year revenue growth and a growing order

book for our emerging metrology systems and

software product lines. We continued to see good

demand for 5-axis AGILITY co-ordinate measuring

machines (CMMs) in the Americas, reflecting the

continuing trend towards measurement as a means

ofautomating manufacturing processes. Revenue

was also bolstered by growth inenergy infrastructure

to support AI data centres.

Sales of shopfloor gauging systems in the consumer

electronics sector in APAC increased significantly.

Our established machine calibration product line

alsodelivered strong year-on-year growth, boosted

by higher demand from semiconductor manufacturing

equipment builders.

By contrast, sales of CMM and machine tool sensors

were flat, with improved demand in APAC offset by

continued weakness in EMEA where demand from

machine tool and CMM builders supplying the

automotive sector remained subdued.

Adjusted operating profit for the segment was 1.6%

higher at £76.7m, with an adjusted operating margin

that was 0.4%pt lower at 17.1%.

Industrial Metrology

Find out more

about our

CMMs and

CMM probe

systems

Find out more

about our

probe systems

for machine

tools

Find out more

about our

machine

calibration and

optimisation

products

Find out more

about our

industrial

automation

solutions

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Segment review continued

Driving organic growth through

innovation

We had an outstanding response to the launch

ofournew Equator-X 500 gauging system and

MODUS IM Equator software at the EMOHannover

trade show in September 2025. Sincethen, interest

has surged thanks to our focus on addressingcommon

shopfloor challenges, including product variety and

frequent design changes. Our manufacturing and

sales teams are now expanding their capacity to

support growing customer demand.

In our calibration product line, we introduced our

newXK20 alignment laser system and accompanying

CARTOXK20 app, targeted at builders of large and

complex machine tools. We continue toinnovate our

products for machine tools, for example with our

third-generation NC4+ Blue laser tool setter. This

enables detection ofminute defects in cutting tools

toensure good surface finish and enhanced part

quality, with lower running costs.

At the end of the year we also introduced two new

probe systems that will help customers bring more

automated inspection processes directly onto

machine tools, saving time and reducing the

requirement for specialist off-machine equipment

andtraining. The RUP60 uses ultrasonic technology

to measure the thickness of parts on the machine,

removing the need to move parts to specialist

equipment or perform manual inspection.

TheRMP400S, meanwhile, is a versatile, multi-

purpose probe thatallows users to automatically

switch between touch-trigger, scanning and surface

finish measurement depending on the application.

Bothnew products will have their full market

introductions at trade shows in autumn 2026.

The trends affecting our markets

We are seeing significant global investment

indefence applications, as well as increased

reinvestment in internal combustion engine

manufacturing, particularly in the USA. Demand

forpower generation to run data centres is having

animpact, with more diesel and turbine generators

being manufactured to provide back-up power

sources. We continued to see lower overall demand

from machine tool builders, but with that demand

concentrated on higher-value, 5-axis machines.

Thisbenefits Renishaw since our reputation for

precision and reliability in fully automated

productionmeans our products are often

chosenforthese machines.

More broadly, the trend towards more automation

and‘smart’ factories continues to grow across our

sectors, with an increasing number of customers

incorporating measurement into shopfloor processes.

Our newer metrology software is supporting this

trend, incorporating functionality that allows data from

measurement machines and computer numerically

controlled (CNC) machines across a factory to be

used to improve the automation of process control.

Sustainability remains a growing issue as our

customers develop their own goals and targets.

Ourautomated measurement tools help, since they

improve manufacturing efficiency, which reduces

both waste material and energy use.

In a climate of geopolitical uncertainty, security of

supply remains high on the agenda and customers

continue to diversify their supply chains across

multiple regions. Our global subsidiary network helps

us respond to this trend by enabling the rapid transfer

of engineering knowledge and experience around

theworld.

Looking ahead

Incorporating our calibration products and industrial

automation products for robots into IM has helped

create efficiencies because of similar technologies,

customer applications and external demand drivers.

We have helped customers set up and maintain their

machine tools for many years and are now applying

that same knowledge and expertise to support users

of robots.

The structural changes within IM will also help us

unlock new opportunities to meet customer demand

for greater productivity, precision and automation in

the manufacture of increasingly complex products.

For example, we see significant opportunity to

develop new tools that will help increase the precision

and accuracy of robot arms in industries such as

carmanufacturing.

We will continue to work closely with our customers

across multiple industries to develop solutions

thatmeet continuing demand for manufacturing

processes with greater efficiency, flexibility and

reduced waste.

Meanwhile, the RMP400S and RUP60 probes

areimportant new high-value sensors that support

the trend towards fully integrating metrology within

manufacturing processes, as well as the rising use

of5-axis machine tools for complex components.

These will help our strategic aim to grow our existing

markets and we look forward to their successful

global introduction in the coming year.

Derek Marshall

Director of Industrial Metrology

Industrial Metrology continued

Renishaw plc Annual Report 2026

CONTENTS

Position Measurement (PM) makes products that

enable customers to improve control and precision

intheir machines in a wide variety of applications.

Our position encoders provide electronic feedback

on machine motion to ensure accuracy and enable

automated operation.

Our customers

Our customers work in highly demanding sectors

thatrequire speed, precision and reliability, and we

work closely with them to develop products that meet

their specific needs for a wide range of applications.

This includes semiconductor chip production,

flatpanel display manufacturing and robotics.

Our encoders are used at all stages ofthe

semiconductor production process, from

manufacturing silicon wafers to packaging and

testing individual devices. The semiconductor

sectoris highly cyclical and we are currently seeing

a‘super cycle’, which is driving very high levels of

investment across the entire supply chain.

We maintain a strong pipeline of new products to

serve these rapidly changing markets, and carefully

manage our established product lines to continuously

improve or retire them as needed.

Many of our experts have worked for Renishaw for

along time and their knowledge has helped us build

deep, longstanding relationships. Our credibility is

reinforced by the fact we use PM products to

manufacture our IM and ST products.

Our FY2026 performance

Revenue for the segment increased by 25.8% to

£260.9m at actual exchange rates (FY2025: £207.4m)

and by 29.2% at constant exchange rates.

We delivered strong sales growth from our

established open optical encoder product line,

resulting largely from AI-driven demand from the

semiconductor industry. Our magnetic position

encoder product line also grew strongly, driven

bydemand from industrial automation and robotics.

Additionally, both product lines experienced

asignificant increase in their order books.

Meanwhile, sales of laser encoders, which are

primarily used in semiconductor wafer inspection

applications, were slightly down relative to a strong

previous year. However, we saw strong growth in

ourorder book as the year progressed.

Adjusted operating profit was 53% higher at £71.5m,

resulting in an adjusted operating margin that was

4.9%pt higher at 27.4%.

Winning new customers through

innovation

We saw strong interest in our new ASTRiA product

line, which we launched in FY2025. This is our first

inductive encoder, which provides accurate and

robust position measurements in demanding

operating environments. We’re now working

closelywith prospective customers, primarily in

theaerospace and defence sector, to meet their

requirements. We launched the ASTRiA encoder as

aminimum viable product, which enabled us to bring

it to market faster. Positive reaction from customers,

the majority ofwhom are new to Renishaw, has given

us the confidence toinvest in developing additional

variants totake advantage of market opportunities.

At the end of FY2025 we introduced our next

generation of laser encoders, which offer improved

metrology performance and ‘plug-and-play’

functionality, making them easier to install and

service, and therefore reducing machine downtime.

Thenew range is suitable for a wide range

ofsemiconductor manufacturing applications,

andwhiletwo of the new encoders are direct

replacements for existing products, the RLE300

laserencoder provides even higher metrology

performance. This will enable us to target customers

supplying the most demanding applications,

including lithography. Reaction to the new range has

been very positive but given the time taken to adopt

new products and the long lead times associated

with the development of machinery for thesector,

wedo not expect to see a significant contribution

from the new range in FY2027.

Position Measurement

Find out more

about our

encoders for

position and

motion control

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Segment review continued

The trends affecting our markets

One of the biggest trends to affect the segment

thisyear wasthe exponential rise in demand for

AIprocessing in datacentres, which relies heavily

onmicroelectronics, semiconductors and

opticalcouplers.

We also continued to benefit from increasing levels

ofindustrial automation, including rising demand

fromthe battery manufacturing sector.

As already noted, growing global investment in

aerospace and defence applications over the past

12to 18 months has drivensignificant interest in our

new ASTRiA inductiveencoder.

More generally, the segment continues to be

affectedby broader economic and geopolitical

trends, with export control an area ofcontinued

complexity. However, these same factors present

newopportunities as industrialised nations continue

to invest in reshoring semiconductor manufacturing

toreduce their reliance on the dominant

geographicalsources ofsupply.

Similarly, competition from low-cost manufacturers,

particularly in Asia, continues to grow. Our reputation

for innovation and quality helps us but we are

committed to increasing automation in our own

production processes to meet the cost, flexibility

andlead times necessary to remain competitive.

We are using highly automated processes to

buildsome of our newer large-volume products.

Thiswill enable us to flex our manufacturing output

torespond to the inherently cyclical demand in

someof our key end markets, including

semiconductor manufacturing.

Position Measurement continued

Looking ahead

With demand in the semiconductor sector expected

to remain strong, our focus over the next year will

beto continue supporting our customers who supply

this sector, and to take advantage ofthe multiple

opportunities that we have to grow revenue.

Wecontinue, therefore, to invest in increasing

production capacity while focusing on adopting

greater levels of automation in our own processes.

Tohelp achieve this we are re-allocating resources

from other areas of our business, including short-term

secondments. Our design and purchasing teams are

also working hard to minimise the impact ofsupply

chain challenges, including redesigning some

existing products to use alternative components for

those that are in short supply.

Over the coming year, the segment will continue to

build on the early success of the ASTRiA encoder

byexpanding the range of sizes available to meet

theimmediate demands of our new customers in the

aerospace anddefence sector. We will also focus

ondesigning automated processes that will allow

ustorapidly scale manufacturing of this exciting new

product. Aspreviously mentioned there has been

apositive market reaction to our next generation of

laser encoders and a full market launch is planned

forautumn 2026 at global semiconductor exhibitions.

Over the year we will also retire some of our older

encoder products to focus on newer solutions with

more modern features, and which are easier to

produce using automated processes.

Steve Oakes

Director of Position Measurement

Renishaw plc Annual Report 2026

CONTENTS

Our Specialised Technologies (ST) segment provides

capital equipment and after-sales support inthree

main areas: additive manufacturing (AM),

spectroscopy and neurological.

Our AM machines incorporate high-powered lasers

tomake complex 3D metal components. They are

supported by our software solutions, whichenable

them to be integrated with other ‘smart’ manufacturing

technologies, such as computer-aided design tools.

Our spectroscopy product division designs and

manufactures high-powered Raman spectrometers

that are used to analyse the chemical and structural

properties of materials. We are a leading global

manufacturer of laboratory Raman microscopes, and

provide highly configurable products that allow our

customers to meet their specific needs. Our current

focus is on products that are versatile and easy-to-

use and targeted at maturing industrial applications.

Our neurological product division makes

neurosurgical robots, accessories and planning

software to supportclinicians in planning and

delivering neurological procedures with a high

degree of precision and predictability.

Our customers

Our AM customers primarily work in the aerospace

and defence and healthcare sectors. Cost-per-part

remains abarrier to widespread adoption in other

more price-sensitive, highly agile markets, like

consumer electronics, but interest there is growing,

thanks toour longstanding focus on manufacturing

machines that boost productivity and maximise cost

effectiveness. We aim to be a trusted partner with

scalable solutions and close relationships between

our AM application and service engineers and

keycustomers.

Our Raman spectrometers are used by customers

inarange of sectors, including academia,

pharmaceuticals, high-tech materials research

anddevelopment, forensics and cultural heritage.

We’reseeing increasing interest in industrial sectors

as we introduce new, easier-to-use instruments like

our new Strada microscope.

In neurological, we provide hospitals with faster,

moreprecise surgical products that help increase

procedural efficiency and support accurate delivery

of neurological interventions. Our products also help

surgeons to plan a procedure ahead of surgery,

saving time in the operating theatre.

Our FY2026 performance

Revenue for ST products increased by 43.1% to

£107.5m at actual exchange rates (FY2025: £75.0m)

and grew by 45.8% at constant exchange rates.

Sales of AM systems were significantly higher

thanFY2025, with a growing order book for FY2027.

Demand was particularly strong from the aerospace

and defence sector in both the Americas and

EMEAregions.

Demand for our spectroscopy systems was lower

than FY2025, with improvements in the Americas

offset by lower sales in APAC and EMEA. This is

largely a result of lower demand from government-

funded research organisations (academia).

While we completed the closure of our loss-making

drug delivery business in FY2026 and continue

toinvestigate opportunities to exit the remaining

neurosurgery activities, performance in our

neurological product line was strong, with

agrowingorder book.

We achieved adjusted operating profit for the

segment of £4.7m, with anadjusted operating profit

margin of 4.4%, from aloss of £9.9m in FY2025.

Thisimprovement was primarily due to the increase

inAM revenue.

Specialised Technologies

Find out more

about our

additive

manufacturing

systems

Find out more

about our

spectroscopy

systems

Find out more

about our

neurological

products

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Segment review continued

Specialised Technologies continued

Driving greater productivity and

precision through innovation

In AM we saw strong interest in our RenAM 500

series machines, boosted by the faster production

speeds made possible by using our TEMPUS

technology. Availablein a range of specifications,

themachines give customers greater choice and

flexibility to suit their initial budget, with the

possibilityto upgrade inthe future. As a result,

wesaw accelerating interestinthe use ofAM for

high-volume manufacturing applications.

We continued to make productivity improvements

tothe series this year, previewing our new LIBERTAS

softwarethat allows customers to precisely print

complex shapes without the need for additional

supports. Thishelps reduce the quantity of material

and energyneeded to make a component. We also

introduced long-life filters, which reduce operating

and labour costs.

In spectroscopy, we launched our new Strada

Intelligent Raman Microscope, with significant

interestfrom potential customers. The Strada

systemcombines the sensitivity of our research-

grade Raman spectrometers with user-friendly

software andhighlevels of automation, giving users

the ability torapidly conduct advanced chemical

analysis inboth industrial and multi-user laboratories.

In our neurological business, we introduced a new

headholder accessory that supports accurate

alignment of the surgical plan with patient anatomy

during image-guided neurosurgical procedures.

The trends that affect our markets

We’ve seen particularly strong demand for our AM

products from the aerospace and defence sector

thisyear, where the design freedom and productivity

the technology offers makes it ideal for printing

intricate, high-value components. Demand from

themedical sector remains strong, too.

We saw rising interest in emerging AM markets,

including the consumer electronics sector. This is

particularly exciting as we see significant volume

production applications for our products. We use

AMin our own processes and therefore understand

the challenges associated with adopting AM,

including the need for a cultural shift to optimise

partdesign foradditiverather than subtractive

manufacturing. Forexample, we’re using the

technology to manufacture some of the

componentsin our Stradamicroscope.

Academia is our biggest spectroscopy market.

However, it relies heavily on government funding,

andcontinues to be affected by geopolitical

uncertainty. Industrial applications offer exciting

growth opportunities, often seeded by previous

research activities. We see increasing demand in

areas like battery development and semiconductors,

where our systems can be used to monitor production

processes. Demand is also rising in healthcare

tosupport studies for early cancer detection,

diagnosing diseases and drug discovery.

Ourbroader product portfolio is positioned to

takeadvantage of these emerging opportunities.

Demand continues to grow for image-guided and

robotic-assisted neurosurgical procedures that

support greater procedural precision and workflow

efficiency. As previously announced, we believe

these opportunities would be better realised by

finding a new, more strategically aligned owner

forthe business.

Looking ahead

While their products are different, AM and

spectroscopy are working together to address

common production challenges, share expertise

andstreamline certain day-to-day processes and

functions. We also see significant prospects for

bothin the after-sales market.

We remain excited about AM’s disruptive potential

and see significant growth opportunities to address

global megatrends like industrial automation,

decarbonisation and electrification. Productivity,

costeffectiveness and consistency remain key

challenges, particularly as customer expectations

grow. So we continue working closely with

international committees to develop standards,

andwith software partners to maximise the value

ofdigital workflows. We’re also working with our own

process and design engineers to further incorporate

AM into our own manufacturing operations.

We continue to focus on developing our next

generation system, which we believe will deliver

astep-change in the economics of AM production,

by maximising build productivity and increasing

levels of processautomation.

We see a significant opportunity for Raman

spectrometers in industrial markets. Key to this will

beramping up our production capabilities to meet

growing interest in the Strada microscope, and

developing customer relationships.

While we seek a new owner for our neurological

business, we continue to respond to opportunities

tomaximise its value, and remain focused on our

ability to meet customer demands.

Louise Callanan

Director of Specialised Technologies

Renishaw plc Annual Report 2026

CONTENTS

25.0

20.0

15.0

10.0

FY2025

adjusted

operating

proﬁt margin

15.7%

Cost

reduction

programme

2.5%

Operating

leverage

4.4%

Impairments

(0.7%)

Gross margin

% (excluding

engineering)

(0.9%)

Currency

(2.2%)

FY2026

adjusted

operating

proﬁt margin

18.7%

Increase Decrease Total

Adjusted operating proﬁt margin

It is a privilege to have joined Renishaw as Chief Financial

Officer. I am grateful to my colleagues across the Group for

theirwarm welcome and support.

I take no credit for the strong FY2026 results, but I very much

look forward to contributing, with Will and the wider team,

tothenext chapter in Renishaw’s growth.

Record financial performance

We achieved another year of record revenue of£815.8m

(FY2025: £713.0m), an increase of 14.4%. SeeWill’s review

onpages 4 to 6, the Segment review on pages14 to 20,

andNote2 on pages 148 to 150 forfurther detail.

At constant exchange rates*, revenue would have been

17.3%higher than the previous year. The difference from

actualexchange rates is driven by a reduction inforward

contract income compared to H1 FY2025, where significant

gains were made from contracts taken out soon afterthe

2022UK ‘mini Budget’.

Adjusted* operating profit increased by 36.2% to £152.9m

(FY2025: £112.3m), with adjusted operating margin

increasingfrom 15.7% to 18.7% (see infographic below).

Our cost reduction programme and restructuring ofour

neurological product line in H1 delivered around £20m

ofcostsavings during FY2026, equivalent to 2.5% of

operatingmargin improvement.

Gross margin (excluding engineering costs and adjustingitems)

reduced to 59.6% of revenue, from 61.7% in the previousyear.

Excluding the impact of currency, this equated toareduction

of0.9% in operating margin, primarily driven by product and

geographic mix.

On the other hand, positive operating leverage contributed

a4.4% improvement in operating margin, as sales volumes

grewfaster than engineering, distribution and administrative

expenses (excluding adjusting items).

This improvement was net of an increase in performance

relatedbonuses of £6.9m. The impact of US tariffs, net of

refunds, has not beensignificant to our financial performance.

Impairments of £8.8m (FY2025: £2.8m) reduced operating

margin by 0.7%, of which £5.3m was due to reprioritising

resource away from a new encoder product, following

asignificant increase in demand for other encoder products.

Theremaining £3.5m relates to investment properties in

Sloveniaand the UK.

Currency had an adverse effect of 2.2% on operating margin

atactual exchange rates. Atconstant exchange rates, adjusted

operating profit would havebeen 62.6% higher than last year.

Weaim to hedge a significant proportion ofour anticipated Euro,

US Dollar, HK Dollar and Japanese Yen cash inflows over

atwo-year period. From July 2026 we removedour previous

forward rate caps that could result in unhedged periods. This

increases certainty over forward positions, although wemaintain

some flexibility over coverage. See Note 25 Financial instruments

on pages 171 to 176 for more information on our coverage

andhedging policies.

After financial income less expense (excluding adjusting items)

and share of profits of joint ventures of £15.1m (FY2025: £15.0m),

adjusted profit before tax was a record £168.0m (FY2025: £127.2m).

Statutory operating profit was £135.3m (FY2025: £107.9m), with

adjusting items mostly relating to the cost reduction programme.

Statutory profit before tax was £150.0m, compared with £118.0m

in the previous year. See Note 29 on pages 180 to 183 for

reconciliations of adjusted profit measures.

The FY2026 effective tax rate decreased to 20.7% (FY2025:

29.0%) mostly as a result of the reversal of historical and

non-recurring tax matters. The underlying effective tax rate

of22.2% was 1%pt higher than the previous year, due to

higherprofits achieved in the UK.

Adjusted earnings per share was 179.5p (FY2025: 137.8p)

andstatutory earnings per share was 163.5p (FY2025: 115.2p).

Chief Financial Officer’s review

* Note 29, Alternative performance measures, defines how each of these measures is calculated.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

Strategic report

CONTENTS

STRATEGIC REPORT

Chief Financial Officer’s review continued

Maintaining a strong financial position

Our liquidity position further improved during the year,

withcashand cash equivalents and bank deposit balances

at30 June 2026 of £291.0m (30 June 2025: £273.6m).

Our cash conversion from operating activities fell to 79% this

year from 91% in FY2025 but remained above our target of 70%.

The reduction was driven by rising working capital required to

support rapid growth in orders through the year, with increases

in both inventories and trade receivables. We invested less in

capital expenditure this year, totalling £38.3m (FY2025: £46.3m),

which was mainly plant and equipment tosupport manufacturing

productivity and additional capacity.

Our capital allocation strategy remains to maintain a strong

financial position, generate cash to invest in organic growth,

andprovide regular returns to shareholders. Weare committed

to R&D investment in new products and processes, and may

seek to accelerate growth in the future with targeted acquisitions.

We continue to value having cash in the bank to protect from

downturns and react swiftly where investment or market capture

opportunities arise.

Our return on invested capital (ROIC) improved by 4.3%pt to

17.5% dueto higher profit after tax and stable levels of invested

capital. We have benefitted from our strong asset base following

recent investment in our manufacturing facilities, which has

enabled us topursue profitable growth opportunities.

This year we paid an interim dividend of 16.8p per share

(FY2025: 16.8p) and are proposing a final dividend of 65.2p per

share (FY2025: 61.3p), resulting in a total dividend for theyear

of82.0p per share, a 5% increase on the previousyear.

Inaddition to the final dividend, we have also approved

aspecialdividend of 70.0p per share as an interim dividend.

Looking forward

We have had another successful year, and I believe that we can

continue to build on current momentum. We are expanding the

capacity of our encoder production lines to meet customer

demand, and we expect a short-term payback on this investment.

While markets are positive, it is also vital that we enhance the

underlying performance of our business by making the right

investments in our infrastructure. Our new global ERP system

isapriority. We have strengthened the governance of this

programme to address deployment challenges, and to ensure

that planned productivity improvements are realised.

We are increasingly focused on cash generation and return

oninvestment, with opportunities to improve our performance

inboth metrics. We have changed the remuneration policy for

our senior team to include an increased weighting for annual

cash conversion, and to incentivise achievement of our ROIC

target over a three-year period.

The 2027 financial year has started strongly, and we expect

tomake further improvements to our operating margins in the

year ahead.

John Shipsey

Chief Financial Officer

22 September 2026

£m

200.0

150.0

100.0

50.0

Sources and uses of cash

Adjusted

operating

proﬁt

152.9

Non-cash

items

33.3

Working

capital

(excluding

adjusting

items)

(30.7)

Capital

expenditure

(net of

proceeds)

(34.5)

Adjusted

cash ﬂow

from

operating

activities

121.0

Interest

received

10.8

Income

taxes paid

(36.7)

Cost

reduction

programme

and other

adjusting

items

(18.2)

Dividends

paid

(56.8)

Net

increase

in cash

and cash

equivalents

and bank

deposits

16.7

Other

(3.4)

Increase Decrease Total

Adjusted cash ﬂow conversion: 79%

Renishaw plc Annual Report 2026

CONTENTS

Risk management

Our approach

Risk management informs our decision-making and

isembedded in our culture. A clear understanding ofthe risks

and opportunities facing our business is central to delivering

long-term value for all our stakeholders. While we are willing

totake carefully considered risks, we focus on identifying

thosethatcould have the greatest impact on our performance

orreputation and managing them appropriately. A balanced and

agile approach is therefore fundamental, not only to minimising

potential losses and safeguarding our reputation but also to

supporting effective decision-making and our strategic goals

oninnovation and growth.

Our risk management framework is dynamic, enabling us to

respond to threats while capitalising on opportunities without

exposing the business to undue levels of risk. Accordingly,

whileour risk appetite for compliance with laws and regulations

is low, we maintain a higher risk appetite for product innovation,

reflecting our experience and longstanding investment in

thisarea.

To manage risk effectively, we apply the three-lines-of-

defencemodel:

— First line: our business segments, sales teams and functions

are responsible for identifying, evaluating and managing their

own risks, including applying our policies and procedures,

such as our Code of Conduct.

— Second line: our Audit Committee, overseeing the

management committees and the Internal Controls team,

reviews the effectiveness of the risk and compliance

framework and so monitors and challenges the risk profile

ofthe business.

— Third line: our Internal Audit team gives independent

assurance by reporting on the effectiveness of the first two

lines of defence in managing our risks.

Our risk management framework incorporates top-down and

bottom-up risk reviews in alternate years to support effective

oversight of principal and emerging risks, complemented by

deep dives into selected principal risks. Together, these reviews

provide important inputs for our Risk Committee and help to

ensure that we maintain an effective system for monitoring and

developing the Group’s approach to risk, as well as our wider

risk culture.

Our risk and controls governance framework

Our risk management framework is embedded throughout

theorganisation and is designed to reflect the distinctive

characteristics of our business. Our Board retains overall

responsibility for risk management and sets the tone for the

Group’s risk appetite. It is supported by our Audit Committee,

which oversees the overall risk and control framework, and by

our Risk Committee, which monitors principal and emerging

risks. At least annually, the Board, with support from the Audit

Committee, assesses the Company’s principal risks and

uncertainties and considers any emerging risks. This includes

reviewing those risks that could threaten our business model,

future performance, solvency or liquidity.

Our Audit Committee, comprising Independent Non-executive

Directors, oversees our risk management and internal

controlframework, which is designed to manage rather than

eliminate the risk of failing to achieve our strategic objectives.

The Committee receives reports on financial and non-financial

risk matters, including compliance and financial controls,

together with internal audit reports, and engages in discussion

with our external auditor.

In light of the implementation timetable for Provision 29 of the

Corporate Governance Code 2024, together with changes to

ourinternal control framework, last year we changed our Risk

Committee’s reporting arrangements. The Risk Committee now

formally reports to the Audit Committee and meets approximately

four times each year. It reviews the outcomes of the top-down

and bottom-up risk reviews, maintains the Group Risk Register,

assesses the internal controls relevant to our principal risks,

conducts our annual risk scoring process, performs deep dives

into selected principal risks, and identifies emerging risks as

appropriate. Further information is set out on page 25.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

SECOND line of defenceFIRST line of defenceTHIRD line of defence

Top-down reviewBottom-up review

STRATEGIC REPORT

Risk management continued

The framework below outlines the governance of risk management within the Group.

The Board

— Has overall responsibility for our risk management and internal control framework.

— Promotes a culture of risk awareness and ensures risk management is embedded across the Group.

— Approves the Company’s principal risks and uncertainties.

— Considers any emerging risks.

— Sets risk appetite.

Audit Committee

— Reviews the effectiveness of our risk management and internal

controlframework.

— Receives reports on risks and internal controls from the Risk Committee,

Internal Controls team, and internal and external audit.

— Makes recommendations to the Board on principal risks and risk appetite.

— Considers and approves viability assessment scenarios.

Risk Committee

— Oversees risk management

processes and procedures,

including measures to mitigate

risks.

— Collects and consolidates risk

information from across the

business and maintains our

Group Risk Register.

— Identifies and monitors our

principal and non-principal

risksand recommends principal

risks to the AuditCommittee.

— Identifies and assesses

emerging risks.

Operational management

— Designs and implements key controls.

— Embeds risk management and controls, undertaking day-to-day risk

management using local and specialist knowledge.

— Monitors risks and controls, mitigating or escalating risks as appropriate.

— Ensures business activities are conducted in accordance with our risk

appetite and relevant policies.

— Identifies current and emerging risks specific to their function.

— Provides updates to the Risk Committee.

Internal Controls team

— Supports management in

thedesign, implementation

and monitoring of controls

toalign with risk and

riskappetite.

— Evaluates and reports onthe

effectiveness ofcontrols.

— Promotes a risk-aware

culture through training

andguidance.

Internal Audit

— Provides independent assurance over the effectiveness of our risk and control framework.

— Assesses the effectiveness of controls as part of the Internal Audit programme and

supports process and control enhancements.

— Shares executive summaries of its audits with the Audit and Risk Committees, where

significant findings are discussed and addressed promptly.

Executive Committee

— Is accountable for managing and mitigating

risks and maximising opportunities.

— Ensures that the Board’s risk appetite is

communicated across the business.

— Receives updates from the Risk Committee on

risk management processes and procedures.

Renishaw plc Annual Report 2026

CONTENTS

Overview of the year

During the year we continued embedding our updated risk

management framework. This included conducting a top-down

risk review, allowing us to better understand our principal risks.

As explained more fully below, werefocused our work on internal

controls to develop our understanding on design effectiveness.

Embedding our risk management framework

Under our risk management framework, we conduct top-down

and bottom-up reviews in alternating years. This year we carried

out a top-down review with help from our segment directors and

regional presidents. They were asked toassess the impact

ofourFY2025 principal risks on their businesses or regions.

Thisprovided valuable information on how our risks affect the

Group, as well as what we’re doing to mitigate them, giving us

amuch fuller picture and understanding of our risks. We also

considered the outcomes of the top-down review when updating

the content of our Group Risk Register, which forms the basis

ofourannual risk assessment.

Internal control framework

The Committee’s work on internal controls this year focused

ondesign effectiveness, being how well a control is designed

toprevent or detect risks. Enabled by the Board’s approval

ofadefinition of material controls, the Internal Controls team

worked with risk owners to identify controls meeting this

definition and review whether their respective material controls

are designed effectively. The Risk Committee then reviewed

theoutputs for most of our principal risks. This work not only

supports the Group’s readiness for Provision 29, but should

alsostreamline and strengthen the Risk Committee’s work going

forward by providing a more focused review of residual risk.

Risk activities during the year

We undertook a number of activities this year under our wider

risk management framework. Key activities included:

— Compliance culture: we conducted an anonymous

compliance culture survey across a significant cross-section

of the Group to understand the views and experiences of

employees on compliance across our businesses and

regions. The results of the survey will inform our priorities

andhow we develop our global compliance programme

(seepage 47).

— Cyber security: we strengthened our cyber resilience

throughadditional third-party support, including cyber

insurance with proactive services and access to specialist

cyber incident response support. We also upgraded our

phishing simulations to raise further awareness among our

colleagues of the increasing sophistication of these scams

and to strengthen our security culture. In preparation for the

EU Cyber Resilience Act, whichintroduces product security

requirements and vulnerability reporting, we are enhancing

our product design and release procedures and have

established a product security function. Both the Executive

Committee and Board received training on cyber security this

year and reviewed aninternal maturity assessment against

the UK Cyber Governance Code of Practice.

— AI: our legal and cyber security teams reported to the

Executive Committee and the Board on the risks and

opportunities of AI this year. We continue to follow an

AIgovernance process that includes conducting risk

assessments and due diligence on AI tools and

maintainingan audit trail in our AI register.

— Supply chain: to minimise our exposure to single points of

failure, plans have progressed this year to introduce greater

flexibility and reduce reliance on single source supply routes.

Where specific supplier or component risks are identified,

design owners are notified to enable focused mitigation

actions ahead of potential supply disruption. Our key site

riskdashboards, which highlight inventory position and the

potential revenue impact, help ensure inventory levels are

maintained and support the prioritisation of alternative

supplysources. The Board received an update on how

we’remanaging our supply chain during the year.

— Horizon scanning: due to the increased geopolitical

uncertainty and industry fluctuations in demand this year,

wefocused on our horizon scanning activities by tracking

market developments, including emerging trends, obtained

from various third-party sources. Regional commentaries

from our three sales regions were also presented to both

theExecutive Committee and Board on a periodic basis.

— Export control: we made significant progress this year on

customer due diligence in relation to export and sanctions

compliance, further developing our enhanced due diligence

for higher risk destinations. We have embedded these

requirements into our ERP systems with supporting process

and training to ensure risks have been identified, reviewed

and mitigated before releasing shipments.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Risk movement

Following our annual risk assessment, Supply chain dependencies

has been identified as a principal risk. Capital products growth

isno longer considered a principal risk. Noother changes have

been made to the principal risks, although the relative rankings

of certain risks have changed.

Increased risks

— Geopolitical uncertainty: this risk has increased due to

changing tariffs and trade controls in some of our major

markets, including the USA and China, as well as the impact

of conflict in the Middle East.

— Low-price competition: the appearance of competitors in

emerging markets offering comparable products for lower

prices has accelerated this year. While these competitors

stilllargely operate within their domestic markets, and have

limited international reach, this risk has still increased.

— Industry fluctuations: we have seen a significant increase

incustomer demand since October 2025 from the

semiconductor and aerospace and defence sectors,

resultingin an increase to this risk.

— Cyber: this risk has grown with the increasing use of AI

andcontinuing state-sponsored activities associated with

ongoing geopolitical tension.

— IT transformation: this risk has increased due to challenges

experienced when deploying Microsoft Dynamics 365 in the

year. While actions are underway to address these challenges

and mitigate similar issues in future deployments, they have

not yet had time to result in the needed improvement,

resulting in an increase to this risk.

— Supply chain dependencies: the continued intensification of

geopolitical tensions and trade policy actions have increased

this risk, particularly for commodities associated with rare

earth materials and those with a high dependence on certain

regions. In parallel, the global electronics market has entered

a period of renewed demand-driven constraint.

Decreased risks

While we continued to enhance our controls and the way we

mitigate our principal risks, none of our risks have decreased

insignificance this year. This reflects the ongoing complexity

ofthe external environment as well as the inherent nature of

ourbusiness.

Our emerging risks

By their nature, emerging risks are risks where the impact and

probability are difficult to assess and quantify but that could

affect our performance in the future – which is why we review these

risks each year. As part of our risk management process, the Risk

Committee monitors the emerging risks identified in the previous

year and developments in the internal and external environments.

The Committee will continue to strengthen this process in future

years, using findings from our top-down and bottom-up reviews

tohelp the Board identify any new emerging risks. Thishelps us

stay ahead of change and put in place pre-emptive mitigation

measures where possible. While emerging risks may increase

the likelihood and impact of our principal risksoccurring, we do

not currently expect them to become future principal risks.

The pace of technological change, particularly in AI and

quantum computing, has been identified as an emerging risk.

Ifadvances in AI outpace our ability to reskill, recruit and

redeploy talent, this could impair innovation, decision-making

and productivity. Inadequate controls or policies governing AI

use may also introduce security vulnerabilities, while increasingly

capable models could be exploited to identify weaknesses in IT

systems, heightening the risk of cyber attacks. Developments

inquantum and other advanced computing may also increase

longer-term cyber and intellectual property risks, including the

need for post-quantum protection of sensitive data such as R&D,

product designs and customer information, as well as potential

expectations from customers and regulators for a defined

transition roadmap. In addition, competitors’ adoption of new

technologies in design and manufacturing may give them a

competitive advantage through shorter development cycles,

lower production costs, and enhanced capabilities in pricing,

forecasting and customer targeting. We continue to closely

monitor this emerging risk via our AI governance process and

the Board and Executive Committee have considered the risks

and opportunities of AI this year.

While the climate-related opportunities facing our business

outweigh the risks, there are still limited risks, which will increase

as the effects of climate change continue to rise, and this year

we have classified climate change as an emerging risk. These

risks cover both physical risks and transitional risks. Physical

risks include exposure of our sites and operations as well as

ourvalue chain partners to extreme weather events and chronic

shifts in climate patterns. We have mature plans in place to

prepare for and mitigate these risks, such as short leases, and

several sites inareas where we have a strong regional footprint,

stock contingency plans, sourcing from established supply

chains, and reinstating production at other manufacturing

locations. Ourtransitional risks include legislation and market

pressures. With growing demand for automation and resource

efficiency in manufacturing, we could risk losing market share

and our position as an industry leader if competitors develop

more energy- or resource-efficient products. More information

onourclimate-related risks and opportunities can be found

inthe Climate-related Financial Disclosures statement on

pages49 to 55.

Priorities for the year ahead

In FY2027, we will seek to focus on the following areas:

— addressing the outputs from our material controls testing;

— developing reporting to both the Audit Committee and Board

to include material control effectiveness;

— analysing the results of the compliance culture survey and

addressing the findings;

— enhancing our third-party due diligence programme;

— developing our capital allocation framework and further

enhancing our M&A assessment and planning capability; and

— strengthening our production planning process to help better

deal with significant changes in demand.

Risk management continued

Renishaw plc Annual Report 2026

CONTENTS

Velocity

VERY LOW

Very slow impact.

Response time

adequate to

mitigateeffects

LOW

Slow impact. Robust

response to strategy

may mitigate effects

MEDIUM

Moderate time to

impact. Swift and

robust response may

mitigate effects

HIGH

Fast impact. Immediate

or near-term response

may mitigate effects

VERY HIGH

Very rapid impact with

little or no warning.

Notime, or very limited

time, to respond and

mitigate effects

Appetite

VERY LOW

Following a marginal-risk, marginal-

reward approach that represents the

safest strategic route available

LOW

Seeking to integrate sufficient

controland mitigation methods to

accommodate a low level of risk,

although this will also limit

rewardpotential

BALANCED

An approach that brings a high chance

of success, considering the risks,

along with reasonable rewards,

economic and otherwise

HIGH

Willing to consider bolder opportunities,

with higher levels of risk, in exchange

for increased business pay-offs

VERY HIGH

Pursuing high-risk, unproven

optionsthatcarry the potential

forhigh-level rewards

1 Geopolitical uncertainty

Velocity

VERY HIGH

Appetite

BALANCED

Link to strategy

All

Risk owner

Chief Executive

Officer

Risk description

We are unable or slow to respond to geopolitical changes that may affect the delivery of our growth plans.

Potential impact

— Reduced addressable market.

— Increased sales concentration

in fewer regions.

— Capital losses from stranded

assets.

— Reputational damage if key

markets become inaccessible.

— Reduced margins or

competitiveness.

— Decline in overall demand.

— Disruption to supply chain.

What we are doing to manage this risk

— Horizon scanning is undertaken to monitor market, geopolitical and

regulatory developments, with reporting to the Executive Committee

continuing to be enhanced.

— A rolling five-year strategic plan is maintained and updated to reflect

developments in the business environment.

— Scenario modelling supports the planning process, with further work

underway to simulate the impact of financial and operational crises.

— A Crisis Management Policy is in place and continues to be developed to

support crisis preparedness and response.

— Manufacturing business continuity plans are in place, supported by supply

chain risk assessments and procurement measures, and are subject to

ongoing review.

— The operating model is reviewed periodically to support alignment with the

Group’s strategy and risk appetite.

Risk movement

Increased risk

Decreased

risk

Stable risk

Link to strategy

Growth in

existing

markets

Increasing

technology

value

Extending into

newmarkets

Principal risks and uncertainties

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

2 Low-price competition

Velocity

MEDIUM

Appetite

BALANCED

Link to strategy

G, I

Risk owner

Chief Executive

Officer

Risk description

We are disrupted by emerging rivals that offer comparable products for lower prices in our markets, leading

tomargin erosion and market share loss, compounded by market access issues in markets such as China.

Potential impact

— Reduced revenue, profit and

cash generation.

— Loss of market share and/or

pricing power, but also

provides an opportunity to

expand into new market

segments.

— Reduced operatingmargins.

— Loss of reputation as

aleaderin innovation.

What we are doing to manage this risk

— Protection of intellectual property through registration, monitoring and

enforcement activities, including the safeguarding of copyrights.

— Use of distribution agreements, including arrangements providing for

exclusivity or other commercial protections.

— Key account management for major customers to support strong customer

relationships and ensure the Group’s value proposition, products and

service offering are clearly understood.

— Development of localised manufacturing strategies for selected products

and markets to support market access, reduce lead times and improve

cost competitiveness.

— Application of targeted pricing strategies for selected entry-level products

in emerging markets.

— Ongoing cost-reduction initiatives across manufacturing, supported by

product and process design improvements, including automation

whereappropriate.

— Leveraging the Renishaw brand and reputation to emphasise the

importance of quality and performance and support appropriate margins.

3 Industry fluctuations

Velocity

HIGH

Appetite

BALANCED

Link to strategy

G, I

Risk owner

Chief Executive

Officer

Risk description

We fail to respond in an agile manner to industry fluctuations in demand, leading to erosion of market position and

customer relationships (in an upturn), and margins (in a downturn).

Potential impact

— Loss of market share.

— Erosion of customer

relationships.

— Restriction on long-term

growth.

— Reduced revenue, profit and

cash generation.

What we are doing to manage this risk

— Horizon scanning uses internal and external data to monitor market

conditions and trends, supported by Executive Committee updates and

theBoard’s annual strategy review.

— The daily activity report process supports the maintenance of monthly

andfull-year forecasts, with formal quarterly reviews at regional and

Grouplevel.

— Forecasts are reviewed regularly to support decision-making and maintain

an up-to-date view of expected demand.

— Production planning reflects historical product mix, demand forecasts,

inventory levels and new product introductions.

— Annual cost budgets are set across the business and monitored monthly

byGroup Finance.

— Workforce planning includes contingency arrangements to respond to

changes in demand.

Risk management continued

Renishaw plc Annual Report 2026

CONTENTS

4 Cyber

Velocity

VERY HIGH

Appetite

LOW

Link to strategy

All

Risk owner

Chief Financial

Officer

Risk description

Cyber attacks against our business are increasing in number, complexity, and the degree to which they are

personally targeting Renishaw and our employees. We continue to face other data security threats. A successful

cyber attack or a significant data loss could severely affect our ability to operate, or lead to the loss of personal

and commercially sensitive data and expose us to reputational and financial damage.

Potential impact

— Inability to operate normal

processes for a potentially

significant period.

— Loss of intellectual property

and/or commercially sensitive

and/or personal data.

— Financial loss and reputational

damage.

— Reduced customer service.

— Diversion of management time

and an impact on business

decision-making.

What we are doing to manage this risk

— The Group maintains an information security management system certified

to ISO/IEC 27001:2022, providing a recognised framework for identifying,

assessing and managing information security, cyber security and privacy

risks. The standard comprises 93 controls across four categories:

1 Organisational controls, including governance arrangements, defined

roles and responsibilities, policies and risk assessment processes.

2 People controls, including employee training, awareness and related

personnel security measures.

3 Physical controls, including secure areas, access controls, equipment

security and environmental protection measures.

4 Technological controls, including network security, malware protection,

data encryption, data-loss prevention, monitoring and logging, and

incident response capabilities.

— Quarterly quality management reviews are undertaken by the IT & Security

leadership team to consider emerging internal and external risks, service

performance, newly identified vulnerabilities and the actions required to

address them. These reviews also monitor progress against actions arising

from internal and external assurance activities.

— Third-party penetration testing on a perpetual basis, as well as periodic

targeted exercises to find any residual gaps in our systems.

— The Board receives quarterly information security updates covering key

risks, initiatives to strengthen the cyber security framework, and the status

of assurance activities.

5 IT transformation

Velocity

MEDIUM

Appetite

LOW

Link to strategy

All

Risk owner

Chief Financial

Officer

Risk description

We fail to successfully implement Microsoft Dynamics 365 ahead of obsolescence of our existing system or with

the anticipated productivity benefits. Technical issues or poor integration with existing systems could negatively

affect our ability to operate and could mean that we do not realise productivity aspirations, leading to manual

intervention and slowing us down.

Potential impact

— Major systems disruption

causing operational delays.

— Delays in processing or issuing

invoices and customer orders,

or in procuring goods and

services.

— Increased costs, including

costs to fix technical issues

and restore or upgrade other

affected systems.

What we are doing to manage this risk

— Given the deployment challenges we encountered during the year,

wehavepaused the rollout of the existing Microsoft Dynamics 365 solution,

to assess our system configuration, our business processes, and our

programme governance. We recently re-organised our resources to better

set us up forsuccess, including through the creation of global process

owners and leads. Additionally, we are engaging third-party advisers to

undertake adiagnostic on our core solution, which we aim to configure

toallow ustoscale at pace after our pause. A programme structure

hasbeen implemented to support the management and delivery of

Microsoft Dynamics 365, which isbased on a recognised project

management framework.

— Our programme Steering Committee, which includes the CFO and Group

Operations Director, meets regularly to provide strategic direction and

oversee projectprogress.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

6 Product innovation

Velocity

MEDIUM

Appetite

HIGH

Link to strategy

G, I

Risk owner

Chief Executive

Officer

Risk description

Failure to develop our competitive position and derive value from our investment in product innovation.

Potential impact

— Failure to lead the market with

innovative products in our core

and adjacent sectors.

— Gradual loss of market share.

— Reduced revenue, profit and

cash generation.

— Inability to differentiate

ourselves from our

competitors.

— Failure to hit business plan

targets and recover investment

in R&D.

What we are doing to manage this risk

— Intellectual property protection through the registration, monitoring and

enforcement of rights, together with broader protection of the Group’s

proprietary technology and copyrights.

— A strategic plan aligned to the Group’s product innovation priorities,

including regular review and refresh to support effective capital and

resource allocation across business segments.

— A structured product innovation process incorporating feasibility

assessments, product roadmaps, stage-gate reviews and testing

procedures to support commercial viability and expected returns.

— Annual Group targets for the commercial launch of new products,

supported by performance measures and marketing activity designed

topromote growth from innovation.

— Quarterly reviews of ‘flagship’ (strategically important) projects involving

segment directors and the CEO, focusing on objectives, milestones,

resourcing, key decisions and risks.

— Regular review of market and customer insights, competitor developments

and broader industry trends, including the use of AI to develop new

products and to enhance their performance.

— Reporting to the Executive Committee and Board to inform our intellectual

property strategy.

7 Supply chain dependencies (new)

Velocity

HIGH

Appetite

LOW

Link to strategy

All

Risk owner

Group Operations

Director

Risk description

Disruption to supply of products to our customers because of interruption to or loss of a critical supplier,

leadingtoerosion of market position and customer relationships.

Potential impact

— Loss of future business and

reduced revenue, profit and

cash generation.

— Reduced margins or

competitiveness.

— Loss of market share.

— Reduced operating margins.

— Erosion of customer and

supplier relationships.

What we are doing to manage this risk

— Dual sourcing options where possible.

— Risk-based inventory policy that promotes a multi-site strategy.

— Dashboards that highlight inventory positions and potential revenue

impacttohelp maintain inventory levels and support prioritisation of

alternative supply sources.

— Product design owners are notified of supply risks to enable mitigation

actions ahead of potential supply disruptions.

— Onboarding vendor assessment procedures including a review process

toevaluate high-risk suppliers before production handover.

— Product development and innovation processes include requirements for

key supplier risk assessment and mitigations for new products and solutions.

— Supplier relationship and performance management framework in place.

Risk management continued

Renishaw plc Annual Report 2026

CONTENTS

8 Non-compliance with laws and regulations

Velocity

HIGH

Appetite

LOW

Link to strategy

All

Risk owner

Group General

Counsel &

Company

Secretary

Risk description

Failure to comply with applicable laws and regulations could result in criminal or civil liabilities for the Company and

its employees, damaging our reputation. It could also result in a breach of other contracts, including insurance and

banking arrangements, hampering our ability to operate.

Potential impact

— Potential penalties and fines,

and cost of investigations.

— Damage to reputation and loss

of future business.

— Management time and

attention diverted to deal with

reports of non-compliance.

— Inability to attract and

retaintalent.

What we are doing to manage this risk

— The Group maintains policy frameworks covering key compliance and

operational risk areas, including anti-bribery and corruption, competition

law, export controls, fraud, tax, and environmental, health and safety.

— These frameworks are supported by the Code of Conduct, policies and

procedures, risk assessments, due diligence on relevant third parties,

contractual protections, and defined approval and delegation processes.

— Mandatory e-learning and targeted training are given to employees

accordingto role and risk exposure, supported where appropriate by

specialist external advisers.

— Monitoring activities include management information, compliance

reporting, gifts and hospitality controls, whistleblowing arrangements,

auditactivity, andred-flag monitoring in selected areas.

— Board and management oversight is supported by periodic reporting,

internalreview activity, and ongoing enhancement programmes

designedtostrengthen the effectiveness and consistency of controls

across the Group.

9 Exchange rates

Velocity

MEDIUM

Appetite

BALANCED

Link to strategy

G, I

Risk owner

Chief Financial

Officer

Risk description

Exchange rate fluctuations can affect our Consolidated income statement, balance sheet and cash flow, affecting

near-term management and planning, investor understanding, and long-term performance.

Potential impact

— Significant variations inprofit.

— Reduced cash generation.

— Increased competition on

product prices.

— Increased costs.

— Adverse impact on

management decision-making.

What we are doing to manage this risk

— A Board-approved market risk management policy is in place. The strategy

isreviewed annually by Group Finance, with support from external

advisers, and its effectiveness and operating limits are monitored quarterly

by the Group Treasury Committee.

— Board-approved business plans are used to forecast future net cash flows

and determine forward contract requirements.

— Forward contract dealings and portfolios are subject to management

review and controls.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

10 People

Velocity

MEDIUM

Appetite

BALANCED

Link to strategy

All

Risk owner

Group Human

Resources

Director

Risk description

Failure to recruit, develop and retain a diverse, engaged workforce with the right talent and skills for now, and the

future, will limit our ability to achieve our strategic objectives.

Potential impact

— Delays in product delivery

andability to deliver strategic

objectives because of loss of

expertise and specialist talent.

— Loss of innovative

edgebecause of

insufficientdiversity.

— Failure to develop future

leaders and insufficient

talentprogression to

supportRenishaw’s future.

— Loss of market share,

reducedrevenue, poor

customer service and

reducedprofit.

— Reputational damage and

increase in attrition rates

because of a failure to

upholdethical standards

andbehaviours.

What we are doing to manage this risk

— We continue to review our reward strategy for all employees to ensure

remuneration practices remain competitive, support talent retention and

mitigate workforce-related risks.

— We are revising incentive arrangements for senior leaders tobetter align

activity and performance.

— An annual performance management cycle supports objective setting,

progress reviews, feedback and year-end evaluation, with reference to

defined competencies and behaviours.

— Employee potential is reviewed annually and development plans are

established where appropriate, supported by talent assessment tools.

— Roles and grades are periodically benchmarked against relevant external

markets to support the Group’s reward framework.

— Succession plans are maintained for defined management grades and

business-critical roles.

— A Group-wide employee engagement survey informs actions at both Group

and local level.

— The Group maintains policies and procedures to promote clear standards

of behaviour and support the appropriate management of issues, including

the Code of Conduct, Conflict of Interest, Diversity and Inclusion,

Grievance and Speak Up policies.

Risk management continued

Renishaw plc Annual Report 2026

CONTENTS

The Directors have assessed our prospects and viability

inaccordance with the UK Corporate Governance Code.

Thisassessment took account of our current position and

principal risks, and the details of the assessment and the

conclusion reached are set out below.

Context

In making the assessment, the Directors considered the

following factors that they felt provided important context:

Financial resources – we have significant financial resources,

with cash and cash equivalents and bank deposits at the

startofthe viability assessment period of £291.0m. We have

astronghistory of creating cash for the business. The only

external source of finance included in the viability assessment

isfinancing for a property in Japan (see Note 20 on page 164),

the repayments for which are not material. We have

nodebtcovenants.

Business model and markets – our business model includes

designing and manufacturing products ourselves, giving us the

flexibility to respond to customers’ needs and control over where

we direct our manufacturing resources. We can also direct our

sales and marketing resources where needed, should market

trends and conditions change. In addition, we are also diversified

over a range of markets, as explained on pages 14 to 20.

Business planning – our business planning process uses

atop-down approach (the ‘corporate view’), as well as detailed

forecasts from our segments and our sales regions, toensure

weconsider a range of perspectives. We also use external

sources of information, such as market trends and economic

growth rates, in our business planning process.

Risk management – we have a robust risk assessment and

management process, as set out on pages 23 to 26. As we

explain in the scenarios section below, the crystallisation of our

principal risks has been considered in the viability assessment.

Assessment period

The Directors used a three-year period, to the end of December

2029, to make their viability assessment. While a five-year business

plan has been prepared, the Directors feel that a three-year period

is more suitable for this assessment and better reflects our

business model – where we typically have short-term contracts

with customers and a short order book, and can adapt our

manufacturing to meet demand in months rather than years.

Principal risks

The Directors reviewed our principal risks and considered

whichof them could have a significant effect on the Group’s

financial position, business model and/or future performance

ifthey were to crystallise within the period to 31 December 2029.

Financial models, described below, were used to assess the

potential impact.

Financial modelling

Each of our scenarios used the same starting point, being

thepessimistic version of our five-year business plan

(withtherevenue in this pessimistic forecast also referred to

asthe ‘highlyprobable’ revenue forecast for hedge accounting).

Forcontext, revenue in the first year of this pessimistic base

scenario is lower than the FY2026 revenue of £815.8m,

whilecosts and other cash outflows still reflect ambitious

growthplans.

The three scenarios then took this same starting point and

revised the forecasts to reflect:

Scenario Summary

A significant reduction in revenue, incorporating:

— a worsening of the global economy and increasing

trade barriers;

— a disruptive event that causes both short-term

disruption and a sustained significant loss of revenue

from key customers after the event;

— a disruptive event that causes manufacturing

difficulties for certain products;

— increasing competition in China from emerging

localcompetitors;

— a strengthening of Sterling; and

— reduced growth from emerging capital equipment.

A significant increase in costs, incorporating:

— a significant fine or penalty;

— a sustained increase in inflation;

— higher import tariffs that cannot be passed on

tocustomers;

— an increase in professional fees;

— reduced operating profit margins on the sale

ofcapital equipment; and

— additional costs to respond to disruptive events.

— A combined reduction in profitability, with a reduction

in revenue less significant than scenario one and an

increase in costs less significant than scenario two.

We incorporated appropriate, realistic mitigating actions into

each scenario, such as reducing capital expenditure, bonuses

and dividends relative to the revised financial performance and

position in these scenarios.

This modelling showed that cash and cash equivalents balances

remained positive in all three scenarios and exceeded £87m

atthe end of the assessment period (31 December 2029)

ineach scenario.

We also performed a ‘reverse stress test’, identifying the

reduction in profit, after mitigating actions, needed to exhaust

cash in the assessment period. This identified a trading level

solow that the Directors felt that the events that could trigger

thiswould be highly unlikely. The Directors also concluded

thataone-off cash outflow that would exhaust the Group’s

cashandcash equivalents in the assessment period was

alsohighlyunlikely.

Outcomes, mitigating actions and upsides

The financial modelling demonstrated that, should the Group

experience ‘severe but plausible’ conditions in the period

to31 December 2029, positive cash and cash equivalents

andbank deposit balances can be maintained throughout.

Asavertically integrated business that typically funds future

growth through cash reserves, we have a good degree of control

on how we use cash, and a range of mitigating actions we can

take to respond to challenging conditions.

Conclusion

Based on this assessment, incorporating a review of the current

position, the scenarios, and our principal risks and mitigation,

theDirectors have a reasonable expectation that we will be able

to continue operating and meet our liabilities as they fall due

overthe period to 31 December 2029.

Viability statement

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

The success of our business relies on good

relationships with our various stakeholders, and

engaging with them helps us run our business and

achieve our strategic goals. We recognise that our

operations can have a significant impact – both positive

and negative – on many of them, which iswhy it’s

essential we consider their views when making

business decisions.

Over the following pages, we summarise our

stakeholder groups and give a snapshot of how

weengage with them, as well as specific activities

thisyear that helped inform our thinking. Highlights

include expanding our supplier engagement

programme to reduce emissions in our raw metals

supply chain, andincreased participation in our

latestemployee engagement survey.

For more information on how we considered our

stakeholders in some of our principal decisions this

year, see our Section 172 statement on pages 71 to 73.

Our employees

We aim to attract and retain people with the right skills to help

ussucceed, including designing and making the products our

customers need. Since diversity of thought is one of the best

ways of encouraging innovation and creativity, we are committed

to inspiring and supporting people from all backgrounds to

unlock their full potential. We are proud to bea responsible

employer and expect the same from our partners. Our employees

have shown great commitment and resilience during organisational

changes this year, and we continue to review and improve our

processes tosupport effective and sustainable ways of working.

How we engage with our employees

We want our people to tell us what we’re doing well and where

we can improve, and are committed to ensuring we have the

channels in place to help them do that. These channels also help

us communicate the steps we’re taking inresponse, and give

greater clarity about our strategic objectives. They include:

— our global employee engagement survey, which we run

in23languages;

— ‘Transforming Tomorrow Together’ hybrid webinars to

encourage two-way discussion on topics, such as design

foradditive manufacture and our ESG strategy;

— regular engagement between employees and their managers

todiscuss performance and career development;

— Board member site visits to learn more about day-to-day

operations and hear directly from employees;

— our network of UK employee resource groups;

— information screens across our sites to share key messages

with colleagues without daily access to alaptop;

— Works Forums for UK sites, with representation from different

business areas; and

— one-to-one engagement between Board members and some

senior leaders to help the Board stay connected with

employee views and support succession planning.

Outcomes from the year

— Participation in our annual global employee engagement

survey rose for the second consecutive year, with 78%

ofpeople responding (2025: 74%).

— Refreshed our internal ‘Channel R’ video leadership

communications to help employees better understand our

strategy and their role and introduced regular leadership

short videos highlighting key activities and updates from

across thebusiness.

— Executive Committee members attended internal early

careers showcase events during the year. These included one

tocelebrate National Apprenticeship Week in February 2026

and our Industrial Placement showcase in June 2026,

recognising the valuable contributions of apprentices and

placement students across the business.

— Held employee resource group roadshows in the UK inApril

and May 2026 to raise awareness, encourage greater

employee participation, and highlight each group’s

contribution to Renishaw’s Social ambition under our

ESGstrategy.

— Our Chief Executive Officer, Will Lee, Non-executive Director,

CamilleDeer, and Group Human Resources Director,

ClareNicholls, met withemployees during a visit to China

inOctober 2025.

Learn more about our focus areas on pages 43 to 46.

How we engage with stakeholders

Renishaw plc Annual Report 2026

Strategic report

CONTENTS

Our shareholders

Our shareholders are the owners of our business. We recognise

the trust they place in us and in return we aimto provide

sustainable, long-term growth. It is essential that our Board and

Executive Committee understand and consider the views of our

shareholders when making key strategic decisions.

How we engage with our shareholders

Our targeted shareholder engagement programme continues

tomature, with ongoing support from our joint corporate

brokers, UBS and Peel Hunt. Will Lee and our Group Strategy

Director, Marc Saunders, regularly engage with investors

onaone-to-one basis to discuss Renishaw’s performance,

strategy and culture, and hear their feedback. Will and Marc

share this feedback with our Board. We also receive monthly

analysis of our shareholder register from UBS. Some of the key

events in our investor relations calendar include:

— half- and full-year financial results roadshows attended

byWill, our CFO John Shipsey,and Marc to discuss

performance and strategic progress with key investors;

— our annual Capital Markets Day, attended by the Board,

alternating between London and a Renishaw site;

— conference calls and face-to-face meetings with key

shareholders, potential investors, analysts and bank

salesdesks; and

— post-results meetings with advisers to discuss market

response to our financial performance.

Outcomes from the year

— Held our first in-person interim results presentation

inLondon.

— Met with 51 institutions during our roadshows, both in

personand via conference calls. Topics included our new

segments, margin improvement, currency hedging policy

andcapital allocation.

— Held 31 one-to-one meetings with institutional investors,

including six in person. Four of these were attended

byWillLee.

— Sought targeted feedback from significant shareholders on

our plans for a new long-term incentive plan for ourleaders,

aswell as a new three-year Directors’ Remuneration Policy.

The feedback was generally supportive of the proposals,

which seek to bring our remuneration more in line with

benchmark comparators.

— Increased engagement with sell-side analysts to improve

market understanding of our business and to support

moreinformed, up-to-date consensus on key

performancemetrics.

— Held a presentation on additive manufacturing as part

ofthis year’s Capital Markets Day in June 2026 to address

specific investor questions and interest.

— Attended key investor-focused events, including the UBS

European Investor Conference in November 2025 and

PeelHunt Industrials Conference in January 2026.

Duringtheyear, Will Lee participated in ‘fireside chats’

organised by Deutsche Numis and Panmure Liberum.

Our Chief Executive Officer, Will Lee, shares his thoughts on

the year on pages 4 to 6.

Our customers

We work closely with our customers to understand their production

processes and the challenges they face so that we can make the

precise, productive and practical products they need. The fact

that many customers have been with us for decades is testament

to our team’s expertise and ability to speaktheir language.

Understanding their expectations has been more important than

ever this year as we responded to growing demand in some of

our key sectors.

How we engage with our customers

We have three different types of customers – machine builders

who fit our products, end users who buy from us directly, and

distributors/channel partners who sell our products. We carefully

select this third group based on their sector-specific experience.

While we tailor our engagement to suit the specific needs of each

customer group, our approach includes:

— our channel partner programmes in APAC and EMEA.

Theprogrammes aim to make it easier for end users to

access our products and to strengthen our customer service

and product support. Our EMEA programme hasthree

different levels of commercial partnership andadedicated

partner portal that includes up-to-date technical, marketing

and sales support materials;

— our global technology centres, which enable us to directly

support customers where they are based;

— customer visits to our UK manufacturing facilities to show how

we use our own technologies to support efficient, high-quality

production processes; and

— gathering feedback via face-to-face and digital sessions,

andevents.

Outcomes from the year

— Board members attended the biennial industrial manufacturing

trade show, EMO, held in Hannover, Germany, in September

2025. This was an opportunity to witness firsthand significant

customer interest in Renishaw’s Equator-X gauging system,

which welaunched at the event.

— Will Lee met customers in China and Japan during his most

recent visit to Asia. This included attending the Laser World

ofPhotonics China and SEMICON China trade shows.

— Hosted an EMEA sales partner conference in Germany

inOctober 2025 to discuss planning and growth with

65partner delegates from 16 EMEA countries.

— Held seminars in India for almost 400 attendees todiscuss

common shopfloor challenges anddemonstrate how our

products enable greater automationin a cost-effective way.

— Hosted more than 130 customers and partners at our

Solutions Network 2026 event in Germany in March 2026.

Theevent included live demonstrations and customer

sessions sharing insights on using our products. Feedback

was positive, with participants commenting onthe opportunity

to build new connections.

Learn more about our products and customers on pages 14 to 20.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

How we engage with stakeholders continued

Our suppliers

We aim to build effective long-term relationships with our

suppliers to access the goods and services we need

tomanufacture our products (direct suppliers), run our

operations (indirect suppliers) and support new product

development. We continue to work with suppliers to help

them adopt more responsible practices and strengthen

supply chain resilience. Our supplier engagement

programme focuses on working with key suppliers to

reducethe greenhouse gas emissions in our supply

chaintosupport our ESG ambitions.

How we engage with our suppliers

While most of our buyers are based in the UK, we also

have teams in the countries where our suppliers are

based so we can regularly engage with them in their local

time zone and language. And because we rely on tens of

thousands of different raw materials and components from

thousands of suppliers, we can’t take a ‘one-size-fits-all’

approach. Instead, we prioritise our engagement based

on certain criteria, including how much we spend with

asupplier, their risk profile and quality. We also continue

to map suppliers’ credentials against our sustainability

and compliance requirements. We focus the majority of

our day-to-day relationship management on around 250

key suppliers. Someof the ways that we engage include:

— self-assessments for all new direct – and selected

indirect– suppliers;

— regular communication via our procurement and

engineering teams to ensure a consistent, timely

supply ofquality goods and services. When a problem

occurs, we work with a supplier to ensure they have

improvement programmes and training in place;

— compliance, audit and risk management policies

andprocesses;

— awareness campaigns on compliance topics, such as

human rights, health and safety, conflict minerals and

sanctions;and

— frequent discussions with suppliers about the

challenges and supply chain risks they face.

OurBoard also receives updates on significant

mattersthat could affect our supplychain.

Outcomes from the year

— Achieved a reduction in the emissions intensity of

aluminium and steel purchased in FY2026 that

exceeded our Executive Committee target of 15%

versus FY2025.

— Building on the in-house methodology we developed

inFY2025, we created a new carbon calculator to help

more suppliers calculate and address their emissions.

— Continued using our supplier relationship management

platform to map suppliers against modern slavery and

conflict mineral risk and assess evidence from

suppliers in the UK, Ireland, India and Germany.

Wealso rolled outa new global internal review protocol

to the UK, Indiaand Ireland.

— Incorporated our new Supplier Code of Conduct into

our onboarding process for all new and reactivated

suppliers. We are now exploring options to share with

existing keysuppliers.

Learn more about the success of our supplier engagement

programme on pages 40 to 41.

Our communities

We are committed to creating positive impacts for society byinspiring

andsupporting our communities. This includes conducting business

inasocially responsible way and taking an open, honest approach

tocommunity relationships. Our science, technology, engineering and

mathematics (STEM) outreach programme is a key part of this work,

encouraging the next generation of engineers and scientists to continue

their STEM studies.

How we engage with our communities

While each country tailors its approach to suit the local area’s culture

andneeds, we focus our efforts on three keyareas:

— delivering STEM education through our outreach programme;

— participating in local community and business initiatives; and

— financial and communications support for charities and not-for-

profitorganisations.

Outcomes from the year

— Continued to deliver our STEM outreach programme by:

• delivering more than 250 outreach events reaching more than

12,500 students across 125 schools and colleges in the UK.

Thisincluded a dedicated STEMoutreach stand at MACH 2026,

amajor UKmanufacturing and engineering exhibition;

• offering week-long engineering and software work experience

places for more than 70 students;

• launching new virtual work experience to give a ‘bitesize’

introduction to working in a global engineering business;

• sponsoring students from ESF Discovery College, Hong Kong,

inthe STEM Racing Hong Kong & Macau competition.

Thecompetition brings together students to apply engineering,

design and project management skills tocreate and race

aminiature Formula 1 car.

• engaging with students at the École de technologie supérieure

inMontréal, Canada, to demonstrate our solutions and software

toengineering students; and

• participating in the 2025 National HTEC (Haas Technical Educators)

Conference at Southwestern Illinois College, USA, as well as running

technical demonstrations at colleges across the USA.

— Participated in a range of community and business

initiatives,including:

• renewing our technical partnership with British Cycling to help the

team prepare for the 2028 Olympic Games in Los Angeles, USA;

• sponsoring the Gromit Unleashed charity trail in Bristol, UK,

tosupport local hospitals;

• sponsoring a local Pride event close to our UK headquarters

inJune 2026;

• donating essential equipment, including blood collection mixers,

tothe Janakalyan Blood Bank in Pune, India;

• funding building renovations at Renuka Swarup Memorial Girls High

School for children from families on lower incomes in Pune, India;

• providing financial support to India’s RESQ Charitable Trust to

purchase vital equipment for wildlife rescue and rehabilitation; and

• employees in São Paulo, Brazil, participating in the 24th GRAACC

(Support Group for Adolescents and Children with Cancer) run

andwalk.

— Donated almost £0.3m to charitable and not-for-profit organisations.

This included £0.1m from our India charities committee to support

localorganisations.

Learn more about the new communities objective we’ve set at part of our

Social goal on pages 43 to 44.

Renishaw plc Annual Report 2026

CONTENTS

Refining our ESG strategy

The external environment has evolved significantly since we

launched our ESG strategy two years ago, growing increasingly

complex and uncertain. Our commitment to upholding high

environmental, social and governance standards remains

unchanged and we must remain agile in our response to the

changing external landscape. This year, our ESG Steering

Committee oversaw work to review our strategy and update

theambitions and targets that underpin it.

This work included engaging with key ESG stakeholders,

including some of our newest senior leaders, to hear their

viewson what is working well and where we need to simplify

ornarrow our focus. While many of the changes reflect our

growing maturity in key ESG areas, some are intended to

removeoutdated elements and refresh and streamline

ourtargets.

We also reassessed the outcomes of the double materiality

assessment we conducted in FY2024, for changes in the

business and progress made since then. This reassessment

helped inform the refinements to our ESG strategy, condensing

some of the topics originally identified.

Throughout, we have aimed to retain the ambition of our original

strategy, while creating a clear, concise set of targets focused

onour most material topics. This will enable us to track and

report on our progress with greater clarity in the years ahead.

The most significant changes have been made within our

Socialambition and supporting targets. Appointing anew

GroupHuman Resources Director this year gave us the

opportunity to reflect on our progress and ensure we have the

right tools and processes in place to create a culture where

every employee, supplier and local community can thrive.

Wegive more detailonthese changes – as well as those in other

areas of ourstrategy – within the relevant sections of this review.

Our refreshed

ESGambitions

Environment

Innovate with our customers and suppliers

toachieve more with less, workingtowards

netzero carbon emissions while minimising

allenvironmental sustainability impacts.

Social

To inspire and support people from all backgrounds

to unlock their full potential. Weare proud to be

aresponsible employer and expect the same from

our partners.

Governance

To strengthen the culture of doing business

responsibly through transparent and effective

risk-based decision-making, supported by our

corporate governance framework.

Our approach to ESG

ESG review

A strategy guided by the UN SDGs

We have aligned our ESG strategy

with the three UN SDGs that are

most material to our business.

Find out more

about our

approach to

corporate

responsibility.

Our ESG strategy is a fundamental part of doing

business responsibly. It guides day-to-day decisions

about how to lowerthe environmental impact of our

products, and how to support our employees, supply

chain partners and local communities. It alsoensures

wegovern our work in ways that deliver our purpose

ofTransforming Tomorrow Together.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

ESG review continued

How we govern our approach to ESG

Our commitment to doing business responsibly underpins

everything we do. This starts at the top with our Board and

Executive Committee, who have ultimate responsibility for

overseeing ESG-related matters. We formed ourESGSteering

Committee in FY2024 to oversee our Group ESGstrategy.

TheCommittee is chaired by our Chief Executive Officer,

WillLee, and members include our Independent Non-executive

Director, Stephen Wilson, and representatives from our larger

product divisions and commercial functions, Sustainability, HR,

Manufacturing, Legal and Finance. Asamember of our Audit

and Remuneration Committees, Stephen provides continuity

andliaison between our Board andmanagement committees.

Our Climate-related Financial Disclosures statement

onpages49to 55 describes how our Board, Executive

Committee and other committees oversee climate-related

risksand opportunities.

Good governance is essential for robust decision-making,

andprovides the foundation for delivering our environmental

andsocial ambitions. It underpins the quality and integrity of

ourdisclosures, ensuring that our ESG ambitions, targets and

performance are reported transparently and responsibly. In the

face of an increasingly complex and uncertain geopolitical

climate, it has never been more important that we stand firm on

our standards of governance andon our commitment to doing

business responsibly. Wegivea detailed illustration of our

governance frameworkonpage 68 of our Governance report.

Adapting to changing regulation

The regulatory landscape is evolving rapidly, and it’s

essentialthat we keep our reporting up-to-date and accurate.

The European Parliament’s decision to simplify and delay

implementing the EU’s Corporate Sustainability Reporting

Directive (CSRD) means we no longer fall within the legislation’s

scope. Nevertheless, the work we did to prepare for it, including

conducting a double materiality assessment, helped us better

understand our impacts and inform revisions to our ESG strategy.

In the meantime, we continue to prepare for reporting against the

International Sustainability Standards Board’s first two standards.

We also continue to monitor upcoming guidance from

organisations like the Science Based Targets initiative and

GHGProtocol, as well as the UK’s forthcoming Carbon Border

Adjustment Mechanism, to ensure our targets, actions and

reporting remain in line with requirements.

Working with others to accelerate progress

The transition to a lower-carbon future isn’t something one

company can achieve on its own. We’re proud of our track

record of working collaboratively with customers and suppliers

todrive innovation in our products and supply chain, and we’re

using that experience to form partnerships that will help deliver

our ESG strategy. We can also help accelerate the transition

byworking alongside other institutions to support collective

action. For example, we are active members of the Additive

Manufacturer Green Trade Association (AMGTA) and the

UK’sManufacturing Technologies Centre (MTC).

Renishaw plc Annual Report 2026

CONTENTS

Our environment ambition

Innovate with our customers and suppliers to

achieve more with less, working towards net

zero carbon emissions while minimising all

environmental sustainability impacts.

Our environmental targets are:

— Reduce Scope 1 and 2 emissions to

NetZeroby FY2028.

— Reduce Scope 3 emissions across our

valuechain by 50% by FY2030.

— Ensure a year-on-year reduction in total

operational energy use per £1m revenue

byFY2030.

— Reduce climate-related risks across our

globalsupply chain by FY2028.

Environment

A refreshed strategy for reaching net zero

For more than 50 years, our products and solutions have

helpedcustomers solve technological and scientific challenges.

We have also helped them lower their impact on the planet

withproducts that reduce manufacturing cycle times, scrap

andwaste. We’re also drawing on our longstanding supplier

relationships to tackle the emissions embedded within the

wholevalue chain.

We refreshed our environmental targets (see box) as part

ofreviewing our ESG strategy this year. Ourrevised targets

create a simpler, more focused plan of actionthat concentrates

on our three most material issues: energy associated with using

our products, our own operational energy consumption and

emissions from purchased goods.

As a result, we have retired our specific customer solutions

target, updated our supply chain target and created a new

operational energy reduction target. Our net zero targets, which

we set in FY2021 and have been validated by the Science Based

Targets initiative (SBTi), remain the same. They are:

— 90% reduction in absolute Scope 1 and 2 emissions by

FY2028, from an FY2020 baseline.

— 50% reduction in absolute Scope 3 emissions by FY2030

from an FY2020 baseline.

— 90% reduction in absolute Scope 3 emissions by FY2050,

from an FY2020 baseline.

We have also developed detailed climate transition plans that

setout the roadmap for achieving our ambitions. These plans

areavailable on our website at www.renishaw.com/en/climate-

related-risks-and-opportunities--48236

Our Scope 1 and 2 emissions

Scope 1 and 2 emissions make up 3% of our total GHG

emissions footprint. Reducing them means improving the

waywerun our operations – from our manufacturing facilities

toour vehicle fleet.

Our FY2026 performance

We reduced our Scope 1 and 2 emissions by 7% this year,

versus FY2025. This is the fifth consecutive fall since setting

ourscience-based targets in FY2021.

Our Scope 1 emissions fell by 8% versus FY2025. This is thanks

to our ongoing programme to switch more of our vehicle fleet

from traditional combustion engines to electric and hybrid

options. We continue to look for opportunities to keep lowering

our Scope 1 emissions by switching more of our fleet to ultra-low

emission vehicles (ULEVs), although this is a bigger challenge

insomeof the countries we work in. We’re also investigating

options to use alternative refrigerant gases in our heating and

cooling systems.

We have made significant progress in our Scope 2 emissions

since setting our science-based targets, with a 97% reduction

since our FY2020 baseline. This is largely due to the steady

increase in the proportion of renewable electricity we use at our

facilities around the world. This is via self-generated sources at

some of our manufacturing facilities in the UK, Ireland and India,

and renewable electricity contracts or certificates (RECs) that

cover the majority of our other operations. This year we saw

asmall, expected increase in our electricity consumption due

towork to electrify our transport fleet.

We have also developed our Energy Savings Opportunity

Scheme (ESOS) action plan, in line with UK government

requirements for businesses to assess and reduce their

energyuse. This has supported the delivery of several initiatives,

including the installation of rapid roller doors at our UK sites

inMiskin and Woodchester. We also continued the rollout of

sub-metering at Miskin – this gives us more granular information

about energy use and so strengthens energy monitoring and

management. The plan will help us deliver our new strategic

target to ensure a year-on-year reduction in total operational

energy use per £1 million revenue by FY2030.

While we remain committed to reducing our Scope 1 and 2

emissions, we recognise this will become increasingly

challenging, partly because our transition plan relies on

theavailability of RECs and ULEVs, adequate charging

infrastructure and a low-carbon electricity grid.

In some cases, the available reductions in Scope 1 and 2

emissions will represent a low return on the investment needed

toachieve them, compared to the potential reductions we could

make in our Scope 3 emissions from the same investment.

Where this is the case, we will prioritise activities that have

thegreatest impact on reducing our global GHG emissions.

The table overleaf shows how this work in lowering our emissions

has progressed over time.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

ESG review continued

Our Scope 3 emissions

Our Scope 3 emissions make up 97% of our total GHG

emissions footprint. Since they are indirect emissions, they are

more complex to address than our Scope 1 and 2 emissions.

Our largest source of Scope 3 emissions comes from the energy

that our products use during their service life, followed by

emissions from the materials, services and equipment needed

tomake and transport our products. Together, these sources

represent more than 87% of our total Scope 3 emissions.

Tackling our Scope 3 emissions remains a big challenge,

because reductions depend partly on decarbonising electricity

grids. Since establishing our ESG strategy, we have learnt the

importance of aligning efforts across industries. While our

products can support the transition to a lower-carbon economy,

our footprint is likely to grow as other industries rely on our

products to reduce the impact of their own operations. Andas

we work towards reducing our products’ energy consumption in

use, we will also need grid decarbonisation to keep pace with

our efforts to achieve our targets.

While some of these issues need significant societal change,

weremain focused on the areas within our control. This includes

designing products with sustainability in mind and collaborating

with key supply chain partners to gather accurate data and

implement GHG emissions reduction initiatives.

Looking ahead, we will assess the SBTi’s new Corporate

Net-Zero Standard to ensure we remain aligned with global

bestpractice and able tomaximise the impact of our emissions

reduction work.

Our FY2026 performance

Our Scope 3 emissions increased 6% versus FY2025.

Thiswaslargely due to increased sales (use of sold products)

and purchased goods and services. Our other Scope 3

categories remained consistent with previous years.

Meanwhile, we reduced the emissions intensity of the aluminium

and steel we bought in FY2026 by 20.5%. This meant we

exceeded a new internal Executive Committee target to reduce

that intensity by 15% versus FY2025. This was due to growing

maturity in our supplier engagement programme and

improvements in primary data collection, allowing us to

replaceassumptions with supplier-specific emissions data.

Designing products with sustainability in mind

We remain committed to designing and manufacturing

productsthat help our customers increase their energy

efficiencyand reduce running costs and waste.

We continue to embed sustainability into our product design

andinnovation processes, which this year included running

webinars for employees to learn more about our Design for

Sustainability guidance document and product-level carbon

calculator. Our engineers also used the calculator to assess

andaddress the cost of ownership for a number of product

development projects.

We always look for opportunities to work with our customers

andpeers to support more sustainable manufacturing, which

thisyear included strengthening our engagement with AMGTA.

This is a global, independent organisation that brings together

stakeholders from across the additive manufacturing value chain

to promote evidence-based understanding of the environmental

and resource efficiency performance of thesetechnologies.

We’ve been an AMGTA member since FY2023, and this year

contributed technical expertise and data insights to support

theresponsible adoption of additive manufacturing. We also

participated in working groups and industry forums to share

examples of good practice with our peers and promote early

consideration of sustainability in decision-making.

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2021FY2020 FY2022 FY2023 FY2024

FY2026

FY2025

Trajectory of Scope 1 and 2 emissions since our FY2020 baseline year

Total Scope 1 and 2 (tCO

Renishaw plc Annual Report 2026

CONTENTS

Working in partnership for a more responsible

supplychain

Given that our Scope 3 emissions represent the majority of

ourfootprint, we focus our supplier engagement programme

onreducing the indirect emissions of the products and

serviceswebuy.

This programme took a significant step forward in FY2025,

whenwe identified that raw metal procurement accounts for

around 29% of our purchased goods and services emissions,

with aluminium and steel being the commodities with the

highestembodied emissions. Wethen partnered with our main

metals supplier to use our in-house methodology to identify an

opportunity to transition themajority of aluminium we buy from

75% to 100% recycledcontent.

This year, we significantly expanded that work, partnering

withseven other aluminium and steel suppliers to help them

calculate their emissions and transition to lower-carbon supply

chains for these raw metals. As a result, we exceeded the

Executive Committee target mentioned above. We want to

buildon this success and have identified further opportunities

toexpand the programme, and apply lessons learnt, to other

commodities and their suppliers.

While the number of suppliers who are engaging with us is

growing, some are not as far into their sustainability journey.

Sowe continue to focus on education and engagement with

oursupply chain, and this year launched a new carbon

calculator to help more suppliers determine their footprint.

As well as giving us access to more primary data to make

moreinformed decisions, partnering with suppliers helps

increase ourresilience in an unpredictable economic climate.

For example, the work we’ve done with our aluminium and steel

suppliers has helped lower our exposure to certain tariffs.

Continuing to refine and strengthen our data

Accurate, reliable data remains essential for clear reporting,

andwe continue to strengthen the way we capture, analyse and

report on our key data. This includes integrating environmental

data into our business-as-usual processes, and increased

automation and streamlined data processes to improve the

quality and consistency of our data and free up people’s time

tofocus on achieving our targets. We also established a major

project to improve the way we capture data on the goods and

services we buy to enable more accurate Scope 3 emissions

reporting. This data is improving all the time, enabling us to

transition to lower emitting supply chains.

It’s important that our own data is as accurate and clear

aspossible as well, so we have continued working with our

manufacturing teams to help them monitor manufacturing waste

and ensure we focus on the areas where we can make the most

impact on our GHG emissions. This year, that work included

launching new calculators to help our teams map their emissions

and sources of waste more accurately.

Together with improvements in governance and calculation

methodologies, the work we’re doing in this area continues to

enhance the accuracy, consistency and clarity of our reporting,

while supporting better decision-making across the business.

Each year, as our data quality, emissions factors and

methodologies improve, we recalculate previous years so

thatwecan assess, and report on,our progress consistently

overtime. Details of any restatements and their impact are

disclosed inour ISO 14064 Greenhouse Gas Report, available

onour website.

Priorities for the coming year

Our focus over the next year will be on continuing to embed our

sustainability tools into our day-to-day operations and finding

new ways to automate and streamline some of our processes.

Aswell as looking to expand our supplier engagement

programme to other commodities we’ll explore options to feed

more aluminium waste back into the supply chain to support

amore circular economy. We will also continue to monitor and

assess guidance from key organisations, including SBTi and the

GHG Protocol to ensure our metrics – and the way we report

them – remain in line with their requirements and expectations.

Inaddition to monitoring absolute GHG emissions against our

science-based targets, we’re developing an emissions intensity

measure covering Scope 1, 2 and 3 emissions. Finally, mindful

ofthe potential environmental impacts of AI, wewill continue to

engage internally and with suppliers to understand and control

the impact of our AI usage.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

ESG review continued

about our

commitment

toNet Zero

How we calculate our data

In line with our Group Environmental Data Policy,

we calculate our GHG emissions using the GHG

Protocol Corporate Accounting and Reporting

Standard (revised edition) and the GHG Protocol

Corporate Value Chain (Scope 3) Accounting and

Reporting Standard.

To calculate our emissions, we use the latest

IPCCGWP 100-year horizon conversion factors,

DESNZ, GHG Protocol, supplier-specific factors

and other factors taken from a respective country’s

National Inventory Report or national government/

agency/regulator. We base as much data as we

can on primary sources, such as meter readings

and utility bills. We use estimated figures for

June’s Scope 1 and 2 emissions each year to

ensure timely data capture, then update this

datain the next Annual Report.

Data for previous years has been subject to

arefinement due to improvements in data

capturemethodologies, official retrospective

updates to carbon emissions factors, and the

correction of historical data errors.

Our ‘statutory emissions’ mean our Scope 1 and 2

emissions, and we use the market-based

methodology to account for our efforts in

generating and purchasing low-carbon energy.

The location-based method is provided for

disclosure only. All our emissions data for FY2023,

FY2024 and FY2025 has been externally assured

and received limited assurance against the

ISO14064-1:2019 standard – which means our

data has been deemed as accurate, materially

correctand a fair representation of GHG data

andinformation.

Total statutory emissions tCO

FY2026

3.8k 0.07k 3.8k

FY2025

4.2k 0.06k 4.2k

FY2024

4.1k 0.09k 4.2k

FY2023

4.4k 1.1k 5.5k

FY202

Scope 1 Scope 2

4.2k 2.8k

7.0k

Group energy consumption kWh

FY2026

42.2m 16.8m 59.0m

FY2025

40.6m 17.4m 58.0m

FY2024

38.7m 17.9m 56.6m

FY2023

38.5m 18.7m 57.2m

FY202

33.9m 18.4m 52.3m

UK Non-UK

Total measured Scope 2 GHG emissions tCO

e location-based

FY2026

10.3k

FY2025

10.4k

FY2024

10.2k

FY2023

9.5k

FY202

9.9k

Energy source kWh

FY2026

46.5m 12.5m 59.0m

FY2025

45.6m 12.5m 58.0m

FY2024

41.6m 12.5m 56.7m

FY2023

37.2m 20.0m 57.2m

FY202

Renewable Non-renewable

29.8m 22.5m 52.3m

Statutory GHG emissions tCO

e per £m revenue

FY2026

4.7

FY2025

5.8

FY2024

6.1

FY2023

8.1

FY202

13.3

Our emissions and energy data

The Companies Act 2006 (Strategic Report and

Directors’ Report) Regulations 2013 required

quotedcompanies to report their annual emissions

and an intensity ratio in their Directors’ Report.

The2018 Regulations added requirements to

disclose annual energy use and GHG emissions,

andrelated information.

*Baseline year.

Renishaw plc Annual Report 2026

CONTENTS

Our social ambition

To inspire and support people from all

backgrounds to unlock their full potential.

Weare proud to be a responsible employer

andexpect the same from our partners.

Our social targets are:

— 40% women in global senior management.

— 10% of UK senior management to be from

ethnicminorities.

— Identify and mitigate human rights risk, within

our own operations and within Tier 1 supply

chains, globally by 2028.

— To develop a global employee and community

engagement programme.

Social

Refreshing our social ambition and

peopleagenda

Our financial and strategic success this year would not have

been possible without our talented people. Thanks to their

expertise, we have continued to manufacture products that

deliver precision, productivity and practicality to our customers,

whilenavigating an increasingly complex geopolitical landscape.

This, together with work to reorganise ourbusiness and reduce

costs, has also made it achallenging year, and we’re proud of

the resilience and care they have shown – for our business,

customers and each other – throughout the period.

Employee wellbeing has remained a key focus during the year,

supported by our well-established network of mental health

firstaiders. This included access to confidential counselling

foremployees to discuss personal or work-related challenges

and dedicated wellbeing resources, including digital tools and

webinars. We run frequent communications campaigns to raise

awareness of and encourage conversations about important

wellbeing topics, aswell as to highlight the resources available

tosupport our people. We also held a dedicated event for

earlycareers employees in January 2026 tohighlight the

importance of wellbeing in supporting performance,

resilienceand engagement.

Following the appointment of our new Group Human Resources

Director, Clare Nicholls, we took time this year to reflect on our

social ambition, targets and broader people agenda, alongside

awider review ofour ESG strategy. In some cases this meant

pausing certain activities, such as our UK employee listening

sessions, to apply what we’ve learnt and refine our priorities,

given the changes we’ve made to the business.

A simpler set of social targets

We have now refreshed our social ambition around three key

areas: our employees, people working in our supply chain,

andour communities, both within our workforce and in the

areaswhere we operate. These changes better reflect our

evolving business, while remaining ambitious and true to the

values and the vision first set out by our founders.

Throughout the rest of this section, we explain the steps we’ve

taken to refresh our social goal and strategic targets, followed

byinformation about our broader, ongoing work to support,

protect and engage with our people.

Helping people from all backgrounds unlock

theirpotential

As innovators, we have always viewed difference as a strength.

But diversity of thought can only thrive in a culture where

everyone has an equitable chance of realising their full potential.

Setting diversity targets are a helpful way of tracking and

reporting on progress and we remain committed to the two

aspirational targets we set in our original ESG strategy:

— women to globally represent 40% of our senior management;

and

— people from ethnic minority backgrounds to represent

10%ofour UK-based senior management, with senior

management and ethnic minority defined by the Parker

Review Guidance for Companies: June 2025.

Currently 22% of our senior management roles are filled

bywomen and 1.8% by employees from ethnic minority

backgrounds. Diversity at senior leadership level decreased

slightly during the year due to changes in Executive Committee

composition and reporting structures, rather than a reduction in

ethnic minority representation. These targets were benchmarked

externally and improving representation remains a priority.

We have made progress in some areas: women represent

40%of our Board, while our early careers programme is

thriving,with good representation across gender, ethnic

andsocioeconomic backgrounds.

However, we always knew our targets were ambitious, and we

stillhave more to do to break down barriers at other levels of the

business. So we will continue to review barriers to progression

and opportunities to support greater diversity across the

workforce during FY2027. We will also commission aspecialist

gender equity consultancy to help assess barriers and

recommend actions for achieving our aspirational targets.

Byfocusing on gender first, we believe we can make the

biggest, fastest impact against our ambition and then apply

thelessons we learn to other aspects of diversity, including our

ethnicity target.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

ESG review continued

Our employee

resource groups

Our UK network of employee-led

resource groups are essential in

helpingus achieve our social ambition.

These groups meet regularly. We have

the following four groups:

— LGBTQIA+ network

— Progress (Women’s health network)

— Neurodiversity network

— Culture network

While we’ve taken time to refine our approach, we’ve also

continued to introduce new measures to support our ambitions,

including further enhancing our paternity leave in response

tofeedback from our FY2025 listening sessions.

Our gender diversity statistics*

Women % Men % Undisclosed %

Board

4 40 6 60 – –

Executive Committee

2 20 8 80 – –

Senior managers

14 22 49 78 – –

Senior managers

and

subsidiary directors

16 15 91 85 – –

All employees 1,340 26 3,788 72 126 2

*All figures as at 30 June 2026.

1 Including the Executive Directors.

2 As defined by the Parker Review Guidance for Companies: June 2025.

3 As defined by the Companies Act 2006.

4 Means statutory directors.

Identifying and mitigating human rights risks

We operate in a complex global value chain, with around

5,200employees and 3,000 suppliers. Asaresponsible

businesswe want to help make that value chainmore

sustainable, which includes a commitment to respecting

humanrights, set out inourupdated target (seeboxon

page43).

For our own operations, this year we introduced new due

diligence checks in our global recruitment and payroll

processes, launched mandatory modern slavery awareness

training and a global communications campaign to help our

employees recognise and report modern slavery concerns.

As well as strengthening our own operations, we have continued

addressing risks in our supply chain. This includes introducing

anew Supplier Code of Conduct to our onboarding process for

all new and reactivated suppliers.

Meanwhile, our global supplier relationship management

platform has become an invaluable tool in engaging with

suppliers on key supply chain compliance topics. For example,

as well as mapping suppliers against modern slavery risks,

we’renow using the platform to store assessment records,

providing evidence of our due diligence approach, and to

assess and rate the evidence provided by suppliers. To date,

we’ve mapped 100% of our UK and Ireland suppliers, with

84%of those in scope now assessed. We have also assessed

100% of our suppliers in India, and more than half in Germany.

We’re also mapping suppliers against conflict mineral risk,

sincesome of our products rely on critical minerals that are

oftenlocated in parts of the world that are at higher risk of

humanrights abuses and conflict.

We are proud of the longstanding relationships we’ve built

withmany of our supply chain partners, and, wherever possible,

wework with them to address specific risks when they arise.

Weare supported in this work by new ‘health check’ dashboards

on our supplier relationship management platform.

Inspiring and supporting our local communities

One of the best ways that we can deliver our purpose of

Transforming Tomorrow Together is by creating positive

impactsfor society and inspiring and supporting our

communities. Our new target to develop a global employee

andcommunity engagement programme formalises the work

we’ve done over many years to support our people and the

communities where we operate.

Our science, technology, engineering and mathematics (STEM)

outreach programme is key to this work, helping to inspire the

next generation of engineers and scientists. In the UK, this

included hosting all-female STEM sessions for International

Women in Engineering Day 2026 at our site in Miskin, Wales,

andrunning outreach in some Gloucestershire libraries.

We also have a thriving community outreach programme in India.

While originally developed in response to requirements for public

limited companies to donate a certain percentage of profits to

community activities, the way the team has developed the

programme is one of the best demonstrations of Renishaw’s

values and purpose. This includes developing long-term

partnerships with charities and community-based organisations

to support projects that fund infrastructure improvements and

provide essential equipment. For example, this year we provided

funds for key equipment at a specialist cancer hospital and

donated essential equipment to a blood bank, and to non-profit

healthcare organisations. We also supported infrastructure

upgrades for academic institutions, provided sewing equipment

to help local women build new skills and income, and supported

a new sewing machine training unit for a school in Pune

dedicated to helping underprivileged and socially excluded

children. Our employees also get involved, sharing their expertise.

We intend to build on these great examples of supporting our

communities to create a more formal programme, and will share

progress in future annual reports.

Renishaw plc Annual Report 2026

CONTENTS

An evolving people agenda

Our people, their expertise and ideas, are at the core of our

reputation for innovation, manufacturing and customer service.

Unlocking their full potential requires more than social targets

– itrequires us to create an environment where individuals and

teams can perform at their best. This means clear expectations,

effective leadership, meaningful development opportunities

anda culture where people feel valued, supported and able

tocontribute.

Listening and responding to employee feedback

In April 2026, we ran our third annual global employee

surveyand were pleased to see participation increase to

78%(FY2025: 74%). This level of participation provides

astrongfoundation forunderstanding employee experience

andidentifying where we need to improve. Employees

continuetoshow pride in our products, services and values,

saytheyexperience high levels of trust and respect at work,

andspeakhighly of our caring and ethical culture. However,

ourengagement score fell slightly to 71% (FY2025: 74%), with

feedback reinforcing themes that are critical toour long-term

success. Employees said they wanted greater clarity about

career development, stronger collaboration acrossteams,

simpler processes and a clearer understanding ofhow they

improve their reward and pay. They also want leaders

tocommunicate more openly about our business priorities

andstrategy.

We are committed to making sure that our people see visible,

effective change as a result of the feedback. We communicated

the results from the survey in all geographies by the end of June

and are finalising action plans to address root cause issues.

Managers have been given training and guidance on how to

interpret their results and identify simple, actionable changes

intheir area that make a real difference to the experience of

theirpeople.

We continued to strengthen our approach to internal leadership

communications to encourage stronger, more authentic

connections between employees and leaders. For example,

several senior leaders participated in conversational ‘Channel R’

videos during the year, sharing insights on issues that matter to

our employees in plain language, such as our business strategy

and celebrating key successes. Employees at all levels of the

business can share progress on their work via our internal social

media channels.

Our Board continues to engage with employees during site

visits.For example, our Non-executive Director, Camille Deer,

visited China with our Chief Executive Officer, Will Lee, and

Group Human Resources Director, Clare Nicholls, inOctober

2025. Camille met senior leaders, joined sales colleagues on

customer visits, and attended a team meeting where she shared

insights into her Non-executive Director role. The visit provided

opportunities to hear employee views, with keythemes shared

with the Board.

Developing capability for the future

Creating opportunities for people to grow and progress is

essential to attracting, retaining and developing talent, and

weknow from employees that we still have work to do here.

Overthe past few years, we have established global reward,

development and performance management tools and

processes and so we have taken time this year to review

whatisworking well, and where we have gaps.

We have continued to make progress during this review, including:

— embedding a regular cycle of performance management

conversations to give employees more opportunities to

discuss their aspirations, strengths and areas for

improvement with their manager;

— conducting succession planning for key roles in our

globalbusinesses;

— expanding our leadership development programmes globally,

starting with training for first-line leaders as they take on

greater responsibility; and

— appointing a Head of Talent & People Development to lead

the creation of an effective, global approach to capability

development and career growth.

Our early careers programme remains an important source

offuture talent. During the year, we refined our approach to

workforce planning and intake forecasting to ensure we are

recruiting a sufficient and sustainable pipeline of early careers

talent for the future needs of the business. We have continued

toinvest in support for our early careers cohorts, including

dedicated coordinators who providementoring and pastoral

support, helping participants successfully transition from

education into employment andbuildlong-term careers at

Renishaw. Furthermore, we introduced a new work-readiness

programme covering topics such as responsible AI use,

resilience, financial wellbeing and communication skills.

Startingbefore onboarding, this builds engagement and

asenseof belonging before and during the early careers journey.

Our engineering apprenticeship programme was recently

awarded the NextGen Makers Gold Kitemark, recognising

excellence in apprenticeship delivery (incorporating positive

feedback from colleagues across England and Wales).

Keeping people safe and healthy in ouroperations

We recognise the importance of providing and promoting safe

and healthy working practices, and integrate health and safety

into our daily activities through a robust management system.

Weare committed to identifying potential hazards and making

sure we have effective controls to minimise their risk.

We review our high-risk areas every year and low-risk areas

every two years. Every site, regardless of activity, is assessed

against our occupational environmental, health and safety policy.

We also monitor incident and accident data to identify and

address trends.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

ESG review continued

This year our accident statistics indicate that the leading cause

of injury was minor cuts and abrasions to hands, caused by

contact with tools and equipment. So, in the coming year we will

focus on designing and implementing a hand injury behavioural

safety programme to deliver across our high-risk areas.

We recorded 239 accidents (FY2025: 197) against a year-end

headcount of 5,254 (FY2025: 5,342), giving us an accident

frequency rate of 27.32 per million hours worked (FY2025: 22.15).

This remains very low compared to the average for the UK

manufacturing sector of 241.20 per million hours worked.

Wehadeight reportable accidents under the UK RIDDOR

reporting requirements during the year. This equates to a rate

of0.09 per 100,000 workers. This is slightly higher than FY2025

and reflects the challenges our people have had to navigate this

year. Nonetheless, it remains significantly lower than the UK

manufacturing sector, which has an average rate of 490 per

100,000 workers.

Many of this year’s incidents were minor near misses,

withourpeople reporting 354 near misses (FY2025: 349).

Proactive near-miss reporting is an essential part of a strong

healthand safety culture. However, on assessing this year’s

reports we found that almost all of them were the result of human

factors rather than a lack of policy or process. So in the coming

year, weplan to increase our focus on behavioural safety to help

reduce this trend.

Priorities for the coming year

Meaningful change takes time and we are committed to

continuously improving our people approach while delivering

oursocial targets.

Our focus in FY2027 and beyond will be on delivering against

employee engagement action plans while continuing to build

thepeople capabilities needed for the long-term success

ofRenishaw.

Starting with our senior leaders, we will simplify, clarify and

strengthen the connection between company performance,

individual contribution and reward outcomes. As a proud

‘talentbuilder’, we will continue to invest in both our early careers

and adult talent pipelines, identifying and removing barriers to

progression and focusing on conversations and tools that help

managers unlock the potential in their people.

We will continue to strengthen our internal culture and

community by helping leaders at all levels to communicate

welland connect teams as we continue to grow.

Protecting the health, safety and wellbeing of our people

remainsa fundamental priority and we will further our journey

towards a zero harm workplace by strengthening a behavioural

safety approach in our manufacturing areas.

Renishaw plc Annual Report 2026

CONTENTS

Our governance ambition

To strengthen the culture of doing business

responsibly through transparent and effective

risk-based decision-making, supported by our

corporate governance framework.

Our governance targets are:

— Promote transparency and accountability in

decision-making throughout the organisation.

— Embed developments to our risk and internal

control framework during FY2027.

— Continue to evolve and embed our Code of

Conduct to support our values and purpose.

— Maintain a zero-tolerance policy on bribery

andcorruption.

— Continue to embed a compliance culture of

doingbusiness responsibly.

Download

ourCode of

Conduct

Governance

Continuing to refine our governance approach

Strong governance is at the heart of our business strategy,

including our approach to ESG, and is more important than

everas we continue navigating a complex and uncertain

geopolitical landscape. As a global business with96% of

salesoutside the UK, we need a clear, robust governance

framework that supports agile decision-making, while protecting

our valuesand purpose. The revisions we made to our strategic

governance targets – alongside our wider ESG strategy review

– are designed to support that aim (see above).

Strengthening our compliance culture

A strong governance framework is only truly effective if people

understand the expectations it sets out, how to use it and what

todo if they have a concern. While our global employee

engagement survey provides a snapshot of employee

understanding of key compliance topics, we wanted to better

understand the day-to-day barriers and opportunities our

peoplecome across in relation to compliance.

In June 2026, we asked a significant cross-section of our global

workforce to take part in an independent, anonymous survey to

share their understanding ofour compliance culture and ideas

for how we can improve across all businesses and regions.

Thesurvey has given us a deeper understanding of howwe can

empower our people to continue to strengthen ourcompliance

culture and mitigate the challenges they face.

The results of the compliance culture survey indicated strong

employee awareness of compliance policies. However, employees

were less clear on how to navigate compliance processes in

practice. The findings also highlighted a supportive, values-led

culture, with little evidence of resistance to compliance

requirements. Both the qualitative and quantitative feedback

indicated a desire for more regular compliance training and

practical examples tailored to employees’ day-to-day roles.

Proposed actions include developing team-specific compliance

guidance and process maps, incorporating more regular

compliance updates into departmental communications,

andsimplifying policies where possible.

Managing our risks and controls

As we explain on pages 23 to 26, this year our approach torisk

and control has continued to mature. Building on previous work

todesign our framework, this year we agreed a definition

ofmaterial controls and our approach to testing them.

Reviewingtheir design is well underway, and will be followed

bya pilot process for testing and documenting how well these

controls areworking in practice (their ‘operating effectiveness’).

Cyber security is a principal risk for Renishaw and remains

akeyarea of focus as we continue to prepare for the introduction

of the European Cyber Resilience Act (CRA). While the CRA

represents a significant change in terms of legal requirements

onproducts, it is a good illustration of how we are weaving

compliance into our commercial strategy, ensuring we provide

our customers with efficient, yet cyber-secure hardware and

software. As well as retiring certain products, we have

enhancedour cyber-security controls on others to prepare

forCRA compliance.

The accelerating use of AI has led us to implement more robust

digital security controls, including the maintenance of a Group-

wide AI register. We have a strict governance process in place,

blocking AI sites by default, maintaining an AI register and

arobust approvals process for specific use cases. We continue

to monitor this rapidly evolving area to ensure we comply with

emerging laws and risks.

Other key areas of focus this year included our anti-fraud

programme and export control framework. In the former,

wehavebegun anew assessment to better understand our

fraud risks and how they are evolving. In the latter, we refreshed

our policy for ‘high-risk’ destinations to respond toongoing

geopolitical uncertainty and UK government advice,

andenhanced our customer due diligence in these locations.

As well as helping us navigate an increasingly complex global

supply chain, these steps help support our Know Your Customer

procedures and our target of maintaining a zero-tolerance policy

to bribery and corruption.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Revising our Code of Conduct

Our Code of Conduct (Code) sets out our expectations onanyone

whoworks for and with Renishaw. Translated into 14languages,

itexplains what we mean by ‘doing business responsibly’, and

gives guidance on how to make good decisions, behaviours

towatch out for and our supportingpolicies.

We ask all new employees to acknowledge that they have read

and understood the Code as part of their onboarding process.

The results of our compliance culture survey indicate

avaluesled culture supportive of doing business responsibly.

While thisis reassuring, we need to support our Code and the

associated policies with practical process maps to ensure our

colleagues identify and understand the requirement relevant

fortheir roles.

We are currently refreshing our Code to ensure our expectations

remain clear and the guidance on how to do business

responsibly is fit for purpose. We plan to publish the revised

Code in early2027.

Whistleblowing

Our Code is supported by our Speak Up Policy, which sets

outour commitment to ensuring everyone feels able to raise

aconcern, and what to do if they witness or suspect unlawful

orunethical behaviour, without fear of retaliation. The policy

includes details of our independent, confidential whistleblowing

portal and global hotline, Speak Up, and anyone working

fororwith Renishaw can raise a concern. This year, we logged

29 cases (FY2025: 27). No significant trends were identified from

the cases reported, although a small cluster of conduct-related

reports was noted in Mexico and China, with a majority ofclosed

cases found to be unsubstantiated.

In FY2026, we also launched a new Supplier Code of Conduct

for ourUK suppliers. As part of our broader supplier

engagement programme, the Supplier Code of Conduct sets

outour expectations of our suppliers covering key compliance

topics such as bribery and corruption. We have incorporated the

Supplier Code of Conduct into our onboarding process for all

new and reactivated suppliers and are now exploring options

toshare with existing key suppliers.

Number of Speak Up cases reported

FY2022

FY2023

FY2024

FY2025

FY2026

Priorities for the coming year

As a responsible business, we will continue to strengthen our

governance and compliance framework by progressing our

workon material control design and effectiveness testing,

launching our revised Code of Conduct, and responding

tofeedback from our compliance culture survey.

In particular, we will focus on enhancing our Know Your

Customer procedures and improving decision-making

processes to strengthen clarity and accountability.

We will also continue preparing for the introduction of the

European CRA, and monitoring cyber security and the

rapidlyevolvingAI landscape.

ESG review continued

Renishaw plc Annual Report 2026

CONTENTS

Climate-related Financial

Disclosuresstatement

Renishaw recognises the climate emergency and understands that both physical changes to the climate and the transition to

alower-carbon economy pose risks and opportunities for our business. This statement provides information on how we identify,

assess and manage those risks and opportunities. The disclosures below meet the expectations of our stakeholders and the

requirements of UKLR 6.6.6R(8) and are broadly aligned with IFRS S2 Climate-related Disclosures.

Recommended disclosures table

The table below provides an index on where to find more information on key disclosure requirements throughout this Annual Report,

in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

TCFD recommendations and recommended disclosures Progress* Read more

Governance

a. Describe the Board’s oversight of climate-related risks and opportunities pages 53, 59, and 68

b. Describe management’s role in assessing and managing climate-related risks

and opportunities

pages 53, 59, and 68

Strategy

a. Describe the climate-related risks and opportunities the organisation has

identified over the short, medium and long term

pages 50 to 53

b. Describe the impact of climate-related risks and opportunities on the

organisation’s businesses, strategy and financial planning

pages 53 to 55

c. Describe the resilience of the organisation’s strategy, taking into consideration

different climate-related scenarios, including a 2°C orlowerscenario

pages 53 to 54

Risk

management

a. Describe the organisation’s processes for identifying and assessing climate-

related risks

page 50; see more

onpages23 to 32

b. Describe the organisation’s processes for managing climate-related risks page 50; see more

onpages23 to 32

c. Describe how processes for identifying, assessing and managing climate-

related risks are integrated into the organisation’s overall riskmanagement

page 54

Metrics and

targets

a. Disclose the metrics used by the organisation to assess climate-related risks

andopportunities in line with its strategy and risk management process

page 55; see more

onpages30 to 42

b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 emissions, andthe

related risks

page 55, see more

onpage42

c. Describe the targets used by the organisation to manage climate-related risks

and opportunities against targets

page 55

*Consistent with the TCFD recommendations

Renishaw plc Annual Report 2026

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CONTENTS

STRATEGIC REPORT

Climate-related Financial Disclosures statement continued

Updating our climate-related scenario analysis

As part of ongoing work to strengthen the way we identify, assess and manage our climate-related risks and opportunities

wecarried out a new deep-dive assessment this year. The basis for this assessment was a series of scenario analysis workshops

with stakeholders from across the business, including representatives from our sales regions, product divisions, manufacturing and

procurement, as well as corporate functions such as HR, Finance, Legal and Sustainability. During the sessions, we considered

threescenarios, over three time horizons, to assess the climate-related physical and transitional risks and opportunities facing

ourbusiness. As a result, we identified 68 climate-related risks and opportunities, which we consolidated into consistent themes.

Wescored each theme based on geography, likelihood of occurrence and potential impact, to create a shortlist of five risks and

fiveopportunities. This shortlist was approved by our ESG Committee and then financially quantified, with support from our finance

and strategy colleagues, to assess affected revenue projections based on a range of factors.

How we conducted our scenario analysis

The tables below set out the scenarios, time horizons and types of risks and opportunities that we considered.

Scenario Description

1.5°C Paris-aligned

scenario

— RCP1.9/SSP1-1.9, PRI IPR: 1.5°C Required Policy Scenario

— Action is taken around the world to align with the aims set out in the 2015 Paris Agreement,

limitingtemperature increases to as close to 1.5°C compared to pre-industrial levels as possible.

— There are some physical changes, however they are largely controlled, but achieving this goal has

required substantial shifts in policy and behaviour.

— Net zero is achieved by 2050.

2°C Paris upper limit

scenario

— RCP3.4/SSP2-4.5, PRI IPR: Forecast Policy Scenario

— Some of the ambitions set by the Paris Agreement are met, with slow, incremental improvements but

noconsistent action or commitment globally.

— Physical impacts are clearer to see, and there is greater inconsistency in policy directions around the

world, increasing burden on multinational companies.

— Emissions start to fall around 2050.

3+°C Business as usual

scenario

— RCP6.0/ SSP3-7.0

— Economies around the world continue to be powered by fossil fuels and promises made by global

leaders and businesses have been largely ignored.

— Global warming has accelerated and is well past key tipping points by 2035. Physical consequences

are tangible, and increasingly catastrophic.

— Emissions keep rising and have doubled by 2100.

Time horizon Timeframe Link to business-planning horizons

Short term 0 to 2 years (to 2028)

Aligned with Group risk management framework and analyst

financialforecasts.

Medium term 2 to 10 years (to 2036)

Aligned with timeframes used for longer-term internal business

planningpurposes.

Long term More than 10 years

(Beyond 2037)

Aligned with planning horizons for long-lived infrastructure assets, andinline

with our global target for reaching net zero.

Category Description

Physical risks

Risks related to the physical impacts of climate change, both event-driven (acute) and longer-term (chronic)

shifts in climate patterns, which may have financial implications for companies.

Transition risks

Growing external pressures to transition to a lower-carbon economy result in changes to the regulatory

ormarket environment, in ways that could negatively affect company costs, revenue or market share.

Opportunities

A shifting business landscape in a changing world that opens new markets and investment opportunities

or allows revenue growth.

Renishaw plc Annual Report 2026

CONTENTS

Assessing our opportunities and risks

Below we give details on four of the climate-related opportunities and one risk that we assessed, including our approach and

assumptions, as well as the likely impact and our response. The results are presented as a percentage of our current Group

revenueas shown in the following key:

Negligible <1% Low 1 to 3% Medium 3 to 10% High >10%

Opportunity: Increased importance of Renishaw technology for manufacturing continuity and efficiency

Increasing need for automation and flexibility in manufacturing drives growth

forRenishaw, as resource efficiency and greater disruptions to supply chains

increase pressures on the manufacturing sector.

Scenario 1.5°C 2°C 3+°C

Timeframe

Short (0-2 yrs)

Medium (2-10 yrs)

Long (10+ yrs)

How we assessed the

opportunity

We projected revenue tied directly to manufacturing from Industrial Metrology (IM), and estimated

the scale of the opportunity by considering the proportion of revenue assumed attributable to

climate-related factors.

Key assumptions

The proportion of IM revenue influenced by the following customer considerations:

— increased scrutiny on waste;

— automation;

— flexibility across a global footprint;

— material competition; and

— decarbonisation.

Impact on Renishaw

Growing demand for more automation in manufacturing presents global growth opportunities

forRenishaw.

Our response

We continue to invest in research and development for our IM technologies, and maintain our close

ties to manufacturing customers and original equipment manufacturers to ensure we provide them

with the products they need to adapt to a changing world.

Opportunity: Market shifts due to the adoption of green technologies

Increasing sales to customers from industries such as battery technology, carbon

capture, clean energy production, electric vehicle manufacturing andother green

industries offset potential losses in existing markets suchastraditional internal

combustion engine manufacturing and aeronauticalindustries.

Scenario 1.5°C 2°C 3+°C

Timeframe

Short (0-2 yrs)

Medium (2-10 yrs)

Long (10+ yrs)

How we assessed the

opportunity

We assessed revenue from customers in green technologies and those that serve them, including

semiconductors, energy, precision manufacturing and automotive sectors, against accelerated

adoption ofgreen technology projections.

Key assumptions

The proportion of relevant revenue that is open to new bidding and the following growth factors:

— increased growth in green technologies as a result of a global shift to decarbonisation; and

— the proportion of sales driven by Renishaw’s position as a trusted leader in these areas.

Impact on Renishaw

Growth in green technologies that Renishaw already supports offset any potential losses from

existing industries that are harder to decarbonise and that may shrink under scenarios 1 and 2.

Our response

We continue to invest in research and development and maintain close relationships with customers

driving the global transition to net zero.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Climate-related Financial Disclosures statement continued

Opportunity: Growth in additive manufacturing

Increased sales of our AM products, as global adoption increases, driven by

agrowing need for flexibility as customers navigate increasingly localised and

frequently disrupted supply chains. Sales also driven bythe unique advantages

of AM to enable novel technologies and applications.

Scenario 1.5°C 2°C 3+°C

Timeframe

Short (0-2 yrs)

Medium (2-10 yrs)

Long (10+ yrs)

How we assessed the

opportunity

We assessed revenue projections from our AM product line against the proportion of sales driven by

climate-related impacts.

Key assumptions

The proportion of relevant revenue affected by the need for:

— novel solutions that are only possible through AM; and

— increased flexibility due to supply chain disruptions, localisation of, and rising demand for

faster,manufacturing.

Impact on Renishaw

We expect growth in AM to drive a large proportion of our future growth.

Our response

We continue to invest in research and development in our leading AM products, as well as

expanding our own use of AM and engaging with industry peers through our membership of AMGTA.

Opportunity: Reshoring and relocation of global manufacturing

Increased sales in EMEA and Americas as well as emerging markets in APAC

asmanufacturing moves closer to the point of consumption, or towards the

location of key commodities, due to greater disruption of logistics or customers’

desire to improve supply chain resilience.

Scenario 1.5°C 2°C 3+°C

Timeframe

Short (0-2 yrs)

Medium (2-10 yrs)

Long (10+ yrs)

How we assessed the

opportunity

We compared revenue projections for manufacturing sales in IM, Position Measurement (PM) and

AM against climate-related factors.

Key assumptions

The proportion of relevant revenue that is affected by:

— the proportion of sales that are for new customers, and not tied to existing machine tool designs;

and

— the proportion of new sales driven by relocation of manufacturing away from centralised global

hubs as a result of primary or secondary impacts of climate change:

• For scenario 1, this is an increased drive to relocate for efficiency gains.

• For scenarios 2 and 3 this is driven largely by a need to shore up supply chains and avoid

global disruptions.

Impact on Renishaw

As manufacturing becomes more localised, the growth in manufacturing facilities creates more

opportunities to sell our products, as customers look for flexible systems that can support production

anywhere in the world.

Our response

We continue to invest in research and development for our manufacturing customers, and retain

aglobal footprint to ensure we can work alongside customers wherever they are located.

Renishaw plc Annual Report 2026

CONTENTS

Risk: Cost of ownership

Losing out to competitors who might offer more energy- or resource-efficient

products that are cheaper, simpler or more sustainable to operate.

Scenario 1.5°C 2°C 3+°C

Timeframe

Short (0-2 yrs)

Medium (2-10 yrs)

Long (10+ yrs)

How we assessed the

opportunity

We combined revenue from product lines that are open to tender and identified as at risk from

acompetitor product that is outperforming ours in terms of resource or energy efficiency.

Key assumptions

The proportion of relevant revenue that is affected by:

— the proportion of sales that are new, and not tied to existing designs; and

— the proportion of potential sales volume considered at risk from a competitor potentially

outperforming a Renishaw product on energy or resource efficiency.

Impact on Renishaw

We could lose market share and our position as an industry leader as a result of a more energy-

orresource-efficient competitor product.

Our response

We continue to invest in research and development for new and existing products and are

committed to designing and manufacturing products that help our customers increase their energy

efficiency and reduce running costs and waste. We continue to embed sustainability into our product

design and innovation processes, which include Design for Sustainability guidance and aproduct-

level carbon calculator (see page 40).

Governance

We have a robust governance structure in place to ensure that we effectively assess and manage our climate-related risks and

opportunities at the appropriate levels of the business, as shown on page 24.

Our Board is ultimately responsible for overseeing Renishaw’s ESG strategy (see our ESG review on pages 37 to 48), which includes

reviewing and approving our climate-related risks and opportunities. The Board delegates day-to-day oversight to ourESGSteering

Committee. The Committee is chaired by our Chief Executive Officer, Will Lee, and includes our Independent Non-executive Director,

Stephen Wilson, and representatives from across Renishaw with relevant skills and experience. TheESGCommittee is also

responsible for sharing information and expertise with our Audit Committee and Risk Committee tosupport themwith our climate-

related responsibilities.

Our Audit Committee reviews the effectiveness of our risk management and climate-related assurance across the Group (page84).

Our Risk Committee supports the Group in identifying and managing our climate-related risks and opportunities (pages23 to 32).

Our Remuneration Committee ensures that our remuneration policies are aligned with our strategic objectives, which include

specific ESG objectives that form part of the incentive opportunity for Executive Directors and the Senior Leadership Team

(pages112 to 115).

Strategy

Renishaw has complied with the recommendations of the TCFD since FY2023, with year-on-year improvements in our disclosures

ever since. This year we conducted a new deep-dive assessment of our climate-related risks and opportunities to prepare for

changes tothe UK listing rules that are expected to replace the now disbanded TCFD’s recommendations with the UK Sustainability

Reporting Requirements S2 (see page 50).

Impact of climate-related risks and opportunities on our business

As the climate-related opportunities facing our business outweigh the risks, we remain focused on ensuring we are well positioned

tocapitalise on them while remaining competitive. This is best demonstrated through our longstanding commitment to innovation

and investment in research and development to create products that reduce manufacturing cycle times, scrap and waste to help

customers reduce their impact on the planet.

We constantly monitor the legislative landscape to ensure we are prepared for any climate-related changes, and maintain close

relationships with customers to ensure we understand the impact that market shifts have on their business. We are seeing

increasedgrowth in new markets, as wider technology shifts occur. For example, we’re seeing increasing sales for encoders in

areas like battery technology and electric vehicle production. We also continue to enjoy growth in our AM product line as more

customers recognise the benefits of AM, including minimising material waste and localising production to cut shipping emissions.

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

Climate-related Financial Disclosures statement continued

While we are aware of planned and existing carbon taxation schemes, such as the UK Carbon Border Adjustment Mechanism

(CBAM), our current financial calculations suggest they will not have a material financial impact on the business.

Despite Renishaw’s global footprint, our exposure to physical risks is limited. This is because our major manufacturing sites are

located in the UK, where we have mature plans in place to prepare for and mitigate the impact of any climate-related disruption to

our operations. Our non-manufacturing sites located in the most exposed geographies are typically short leases, giving us flexibility

to adapt to changes in the frequency or severity of climate-related events. Sites that are not on short leases are in areas where we

have a strong regional footprint, so our customers would still have access to our sales and support teams in the event of disruption.

Our highest-risk manufacturing site is Pune, India, which could be affected by wildfires and heat stress. This, in turn, could affect

ourability to produce the volume of cables and tool-setting arms we need. To mitigate this risk, we have implemented an inventory

contingency plan, ramping up sourcing from other established supply chains and drawing on our experiences during the COVID-19

pandemic to quickly reinstate production at our other manufacturing locations.

We have continued to develop our climate transition plans, which describe our net zero targets and our strategy for successfully

transitioning to a lower-carbon economy (www.renishaw.com/en/climate-related-risks-and-opportunities--48236).

Resilience of our business strategy

We are committed to developing products that help the world reach net zero and have aligned our business strategy and planning

with a 1.5°C to 2°C scenario as set out under the Paris Agreement. This ensures we can adapt to changing government and market

requirements as the global transition to net zero occurs, regardless of pace or shifts in public opinion. We continue to invest in new

products and upgrading existing product lines to deliver the most efficient manufacturing possible for our customers globally.

While our physical risks increase under a 3+°C scenario, as well as over a longer time horizon, we believe we have the capacity

toadjust our business strategy if these risks become more extreme and frequent. We have already taken steps to mitigate against

potential impacts. For example, we have equipped our UK manufacturing sites with flood defences and early warning systems,

aswell as ensuring we have some duplication of manufacturing to ensure continuity in the event of climate-related disruption.

We believe our business strategy is robust and considers the potential impacts of these climate-related trends. Our strategy will

continue to be informed by the work we are doing to identify, assess and manage climate-related risks and opportunities.

Risk management

Our Risk Committee is responsible for overseeing the management of our climate-related risks. The Committee uses top-down

andbottom-up reviews to score all risks, including climate-related risks. Since FY2025, we have included risk velocity in our

management and identification process.

The Committee has reviewed our CFD assessment of climate-related risks and opportunities, and this year upgraded ‘climate

change risk’ to emerging. Climate change is considered alongside a grouped sustainability risk category, which includes risks

associated with legislation. This year, climate change has been upgraded to an emerging risk by the Risk Committee. More details

on this risk can be found on page 26.

Our Director of Group Strategy, Marc Saunders, is the owner of the Sustainability risk category. We do not currently consider

Sustainability a principal risk due to the time horizon we consider for core risk assessment. Our risk register details the riskswe have

identified at an organisational level; more information about organisational risks is available in our Risk report on pages 23 to 32.

Managing supply chain climate risk

We continue to integrate climate-related risks into our procurement strategy. We are implementing a supplier risk assessment

programme to assess climate-related risk alongside other factors, such as financial health, political uncertainty or exclusive

sourcingstatus. We will begin with our highest-value suppliers, meaning suppliers who provide materials for our high-revenue-

generating products. We will use our supplier engagement programme (see page 36) to work with suppliers located in a country

identified as high risk by the Notre Dame Global Adaptation Initiative’s country rankings (https://gain.nd.edu/our-work/country-index/

rankings/), to help them identify therisks they face and ensure they have appropriate mitigation plans in place. These plans could

include dual sourcing, orarequirement to hold a certain level of inventory.

Assessing risk at our sites

Alongside assessing our supply chain risk, we are refining how we assess risk in our owned and leased sites, informed by previous

chronic or acute events that have affected those sites, as well as their existing mitigations and disaster relief plans. Our aim is to

equip site teams with the information they need, rather than maintaining a centralised database that doesn’t inform site-level

decision-making.

Renishaw plc Annual Report 2026

CONTENTS

Metrics and targets

Having reassessed our climate-related risks and opportunities, we can now quantify and monitor the financial value associated with

them. We will continue to update and review our quantifications, and use them to guide business strategy to ensure we maximise the

opportunities presented to us, and minimise risk exposure.

We have set targets to reduce our greenhouse gas emissions across our full value chain, which have been validated by the Science

Based Target initiative (SBTi). Our approved targets, which are aligned to a 1.5°C scenario, are summarised in the table below:

Near-term

50% reduction in absolute Scope 3 emissions by FY2030 from an FY2020 baseline

Net zero

90% reduction in absolute Scope 1 and 2 emissions by FY2028 from an FY2020 baseline

90% reduction in absolute Scope 3 emissions by FY2050 from an FY2020 baseline

We use the following cross-industry TCFD metrics to track and report on our climate-related risks and opportunities:

— Scope 1, 2 and 3 GHG emissions – pages 39 to 42;

— energy use – pages 39 to 42;

— climate-related executive management remuneration – pages 111 to 115;

— potential revenue associated with climate-related trends – pages 51 to 53;

— strategic objectives for the FY2026 annual incentive opportunity for our Executive Directors and Senior Leadership Team,

including progress against the Executive Committee’s target to reduce Scope 3 emissions, centred on our purchased metals

(Cat. 1) – page 114.

Our climate-related risk metrics

Climate-related risk metrics FY2026 FY2025 FY2020

Scope 1 emissions (CO

3,774

4,090 4,155

Scope 2 emissions (CO

e) (market-based)

63 2,822

Scope 2 emissions (CO

e) (location-based)

10,345

10,421 9,885

Scope 3 emissions (CO

128,687

121,364 94,512

Total statutory emissions (CO

3,846

4,153 6,977

Statutory GHG emissions (tCO

e per £m revenue)

4.7

5.8 13.7

Renishaw plc Annual Report 2026

STRATEGIC REPORT

CONTENTS

STRATEGIC REPORT

We are required by sections 414CA and 414CB of the Companies Act 2006 to include in our Annual Report certain non-financial

andsustainability information. The table below shows where this information can be found in this report.

Our business model is set out on page 10 and our non-financial KPIs are disclosed on page 13.

Reporting

requirement(s) Further information Policies Related principal risk(s)

Climate-related

financial

disclosures

— Climate-related Financial Disclosures

statement (pages 49 to 55)

— n/a — Product innovation (page 30)

— Low-price competition (page28)

— Non-compliance with laws and

regulations (page 31)

— Supply chain dependencies

(page30)

Environmental

matters

— ESG review – Environment

(pages39to42)

— How we engage with stakeholders

(pages 34 to 36)

— Group Environmental Data Policy

— Group Management of

WastePolicy

— Code of Conduct

— Product innovation (page 30)

— Low-price competition (page28)

— Non-compliance with laws and

regulations (page 31)

— Supply chain dependencies

(page30)

Our employees

— How we engage with stakeholders

(page 34)

— ESG review – Social (pages 43 to 46)

— Directors’ Corporate Governance

Report (pages 66 to 67)

— Section 172 statement (pages 72 to 73)

— Other statutory and regulatory

disclosures (page 123)

— Equality, Diversity and

InclusionPolicy

— Speak Up Policy

— Group Occupational Health

andSafety Policy

— Code of Conduct

— People (page 32)

Social matters

— How we engage with stakeholders

(pages 34 to 36)

— ESG review – Social (pages 43 to 46)

— Directors’ Corporate Governance

Report (pages 66 to 67)

— Section 172 statement (pages 72 to73)

— Other statutory and regulatory

disclosures (page 123)

— Equality, Diversity and

InclusionPolicy

— Speak Up Policy

— Group Environmental Health

andSafety Policy Manual

— Code of Conduct

— People (page 32)

Respect for

human rights

— How we engage with stakeholders

(pages 34 to 36)

— ESG review – Social (page 44)

— Directors’ Corporate Governance

Report (page 67)

— Group Modern Slavery and

HumanTrafficking Policy

— Equality, Diversity and

InclusionPolicy

— Speak Up Policy

— Code of Conduct

— People (page 32)

— Non-compliance with laws and

regulations (page 31)

Anti-corruption

and anti-bribery

— ESG – Governance (pages 47 to 48)

— Directors’ Corporate Governance

Report (page 67)

— Group Anti-Bribery and

CorruptionPolicy

— Gifts and Hospitality Policy

— Code of Conduct

— Non-compliance with laws and

regulations (page 31)

— Supply chain dependencies

(page30)

The Strategic Report on pages 2 to 56 was approved by the Board on 22 September 2026 and signed on its behalf by:

Sir David Grant

Chair

Section 172 statement

Our Section 172 statement on pages 71 to 73 describes how the Directors have had regard to stakeholders’ interests and other

matters when discharging Directors’ duties set out in Section 172 of the Companies Act 2006. It includes examples of how

stakeholders’ interests were considered in the principal decisions taken during the year. Details of our engagement with

stakeholders are in the How we engage with stakeholders section on pages 34 to 36.

Non-financial and sustainability information statement

Renishaw plc Annual Report 2026

Strategic report

CONTENTS

58 Directors’ Corporate Governance Report

60 Board of Directors

63 Executive Committee

71 Section 172 statement

77 Nomination Committee Report

84 Audit Committee Report

90 Directors’ Remuneration Report

122 Other statutory and regulatory disclosures

125 Directors’ responsibilities

Governance report

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport

The year in review

The Board had another busy and productive year in FY2026,

supporting and challenging the Executive Committee and

evolving our composition. In this Governance Report,

weoutlineour key activities and outcomes, the work of our

Committees, theCompany’s governance structures, and how

wecomplied with regulatory requirements – including the

UKCorporate Governance Code 2024 (Governance Code),

whichapplies tothe Company for the first time this year

(exceptProvision 29, which will apply from FY2027).

Although Board attention this year was often on the changing

and complex international geopolitical events that influence

ourcustomers and markets, we ensured that governance,

leadership and resources remained effective. The Board

addressed leadership succession, shareholder engagement,

business productivity, risk management, material controls,

ESGmatters, people and culture, and the ongoing development

of our resilient strategy tosustain long-term success.

As part of that long-term success, and as announced on

26 November 2025, the families of the Company’s founders –

thelate Sir David McMurtry and current Non-executive Director

John Deer – established a joint family holding company,

DeltamHoldings Limited (Deltam), to hold 50.25% of the

issuedshare capital of Renishaw. Establishing Deltam

facilitatesagenerational transfer of the business within the

families, reaffirming their commitment to Renishaw and their

intention to be long-term shareholders of the Company, which

Ivery much support. The discretionary trusts established for the

benefit of Richard McMurtry, Ben McMurtry and Yvette Pridmore

have a72.12% interest in Deltam and the Deer parties 27.88%

inaggregate. More information is set out on pages 123 to 124.

A summary of the Board’s activities during the year and its

principal decisions can be found on pages 70 to 73.

Changes to the Board

Appointing a Chief Financial Officer

Following a comprehensive search process, more details of

which can be found in the Nomination Committee Report on

page 83, John Shipsey joined the Company as Chief Financial

Officer (CFO) and Executive Director with effect from 13 April

2026. John brings significant board and executive leadership

experience, having held the role of CFO at various listed

andprivate companies, including 12 years at Dyson Limited,

fiveyears at Smiths Group plc and two years at Featurespace

Limited. John also held finance and strategy rolesat Diageo plc

earlier in his career and served as a non-executive director of

Dechra Pharmaceuticals PLC.

John’s deep understanding of the industrials sector and its

associated performance drivers will be key to supporting the

Board’s increased focus on strategy and risk, as will his strong

track record of leading high-performing finance functions.

Welook forward to him strengthening both the Board and

Executive Leadership team.

Appointing a permanent Chair

I was honoured to accept the role of permanent Chair from

8 April 2026, for a period of up to two years, and so also retain

my role as Chair of the Nomination Committee. I look forward

tocontinuing to work with the rest of the Board through this

important period of evolution for the Company and to helping

provide stability, along with our new Senior Independent Director.

Appointing a Senior Independent Director

Following my appointment, the Board appointed Juliette Stacey

as our new Senior Independent Director, from 8 April 2026.

Juliette first joined Renishaw as an Independent Non-executive

Director in January 2022. As well as Chair of the Audit

Committee, she is also a member of the Nomination and the

Remuneration Committees.

Appointing Camille Deer as a Non-executive Director

We also announced the appointment of Camille Deer as

aNon-executive Director, with effect from 1 September 2025.

Camille has been an excellent addition to the strength of our

Board, enriching discussions this year. I am confident that her

appointment will prove to be invaluable in helping to guide the

strategic direction of the business, while – in addition to the

jointfamily holding company, Deltam – also demonstrating the

continued commitment of the founding families to the future

ofRenishaw.

Overseeing risk and controls

I was pleased with the progress made in developing the Group’s

risk and control maturity, moving from framework design to

embedding. We achieved key milestones in progressing towards

Provision 29 by defining what a material control is for the Group,

setting the standard for effectiveness of these controls and how

they’ll be tested, and have focused the risk owners on whether

the controls they are responsible for are designed effectively.

Embedding the desired culture

We continue to monitor and embed our desired culture, including

doing business responsibly. Weundertook work this year to

refresh our Code of Conduct, with a target launch date of

January 2027, and conducted our first Group compliance culture

survey and third employee engagement survey – see more on

pages 47 to 48, and 45 respectively. We also recruited a new

Group Human Resources Director, Clare Nicholls, who is

reassessing key priorities.

Renishaw plc Annual Report 2026

CONTENTS

Refreshing the ESG strategy

ESG has become increasingly important across Renishaw in

thepast few years. This year our ESG strategy was refreshed

torefine our goals, remove outdated elements and streamline

our targets while retaining the ambition of our original strategy.

The Board approved the refreshed ESG strategy, and the

ESGSteering Committee continues to oversee progress

againstit. More details on delivery against the refreshed

strategyare given in the ESG Review on page 37.

Building relationships with stakeholders

Long-term success depends on strong relationships with all

ourstakeholders. In the UK, Board members attended our

2025AGM at our headquarters in November 2025 and the

Capital Markets Day in London in June 2026, giving us the

chance to meet with shareholders and other market participants.

The Board monitors the Company’s increased interaction with

the investment community, which we discuss on page 35.

Visits by Board members to China this financial year provided

important industry context for strategic Board decisions in our

largest market. We held a Board meeting at our site in Miskin,

Wales, and our Directors took time to visit trade shows,

includingEMO Hannover – the largest machine tool and

factoryautomation conference in the world – in September 2025.

Theyalsoattended some of our productdivisions’ showcase

events, where there was an opportunity to interact with our

employees. These visits providedthe Board with valuable

insights into the experiences ofour people, suppliers,

customersand competitors, complementing

management’sinsights.

Our engagement with stakeholders, including our people,

provides the Board with enhanced context and background

when making decisions. Pages 34 to 36 of our Strategic Report

explain more about how we engage with stakeholders, while our

Section 172 statement on pages 71 to 73 explains more about

how we consider the views of our stakeholders in ourdecision-

making process.

External Board performance review

This year we commissioned an externally facilitated Board

performance review, conducted by Fidelio, in accordance

withthe Governance Code. The review confirmed that the

Boardand its Committees operate effectively, with Directors

demonstrating strong commitment and constructive challenge.

Actions identified will inform our next cycle of development

andour improvement agenda. Details of the performance review,

including the areas identified for improvement, and the progress

made against last year’s actions, can be found in the Nomination

Committee Report on pages 81 to 82.

Focusing on diversity and inclusion

We continued to focus on diversity and inclusion this year,

through our Board-approved global Equality, Diversity

andInclusion (EDI) Policy. This includes the Board’s

responsibilities in relation to EDI and reflects the Financial

Conduct Authority’s (FCA) requirements for diversity

atBoardand Board Committee level.

Looking ahead

In FY2027, the Board will focus on:

— continuing to support the Group’s growth plans by

overseeingits key strategic focus areas for growth and

supporting management with the development of our

operating model;

— continuing the search for the Company’s next Chair, with the

aim of making an appointment by 2028;

— implementing the Board effectiveness action plan;

— continuing to increase engagement with investors;

— overseeing our talent pipeline at Executive Committee level

and one level below;

— overseeing climate change and ESG matters, including

improving ourdiversity across all levels of the business; and

— complying with Provision 29, and monitoring how culture

supports the way of operating throughout the Group.

The progress we have made in the past couple of years

providesus with a sound platform from which we look forward

with confidence. The 2026 AGM will be held on 25 November

2026, and I look forward to meeting many of you then.

Sir David Grant

Chair

22 September 2026

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

Sir David Grant

Chair

Date appointed to the Board April 2012

(Independent Non-executive Director from April 2012 to

October 2013; Senior Independent Director from October

2013 to June 2024; Interim Non-executive Chair from

June2024 to April 2026)

Areas of expertise

Engineering, people, science/technology

Contribution, skills and experience

— Various previous leadership positions at international

engineering companies and government-related science

and technology bodies.

— Extensive engineering experience andrecognised for his

contributions toindustry.

— Contributes to talent recruitment, increasing diversity

anddevelopment ofthe workforce.

External appointments None

Will Lee

Chief Executive Officer

Date appointed to the Board August 2016 (Group Sales and

Marketing Director from August2016 to February 2018)

Areas of expertise

Sales and marketing, strategy, engineering,operations

Contribution, skills and experience

— Effective and strong leadership and management, both

technical and commercial, with an acute awareness

oftheindustry and its opportunities andchallenges.

— Maintains a wide breadth of knowledge, aswell as

strongstakeholder relationships that continue to develop

the business.

— Joined in 1996 and since then has held various senior

management positions in engineering, operations, and

sales and marketing, resulting in an in-depth understanding

of the Group’s business, products and markets.

External appointments None

John Deer

Non-executive Director

Date appointed to the Board July 1974

(Executive Deputy Chairman from July 1974 to January 2020)

Areas of expertise

Manufacturing, strategy, international development

andoperations

Contribution, skills and experience

— Co-founder of Renishaw, contributes toBoard leadership

and strategic decisions for growing the business.

— Extensive manufacturing and quality experience, contributes

to the delivery ofefficient, high-quality manufacturing.

— Strategic vision, and commercial and international

experience.

External appointments None

John Shipsey

Chief Financial Officer

Date appointed to the Board April 2026

Areas of expertise

Finance, IT, strategy, risk and controls

Contribution, skills and experience

— Extensive international financial leadership experience

across global listed and private companies.

— Deep expertise in capital allocation, business

transformation, governance and investor engagement.

— Strong track record of improving financial performance,

strengthening controls and supporting complex strategic

transactions, including acquisitions and divestments.

External appointments None

Board of Directors

Renishaw plc Annual Report 2026

CONTENTS

Juliette Stacey

Senior Independent Director

Date appointed to the Board January 2022 (Independent

Non-executive Director from January 2022 to April 2026)

Areas of expertise

Finance, M&A, strategy, corporate governance,

internalcontrols, compliance

Contribution, skills and experience

— Qualified as a chartered accountant with an in-depth

understanding of finance, M&A andstrategy.

— Career experience in finance, as well asexecutive roles

inboth listed and non-listed company environments.

— Roles as chair of audit committees at other listed

companies brings a wider industry perspective.

External appointments

— Senior independent director and audit committee chair

ofFuller, Smith & Turner plc.

— Non-executive director and audit committee chair of

Sanderson Design Group plc.

— Non-executive director of Hardwicke Investments Limited.

— Non-executive director and audit committee chair of

Willmott Dixon Holdings Limited.

Catherine Glickman

Independent Non-executive Director

Date appointed to the Board August 2018

Areas of expertise

People, remuneration, pensions, strategy

Contribution, skills and experience

— Breadth of human resources experience in other listed

companies is particularly valued by the Board.

— Skilled at developing reward structures thatalign

leadership motivation with Groupstrategy.

— Extensive HR, remuneration and pensions experience,

aswell as previous international experience with

Genusplc and Tesco plc.

External appointments

Non-executive director of East of England Ambulance

Service NHS Trust.

Professor Dame Karen Holford

Independent Non-executive Director

Date appointed to the Board September2023

Areas of expertise

Engineering, research and development, science/technology,

people and diversity

Contribution, skills and experience

— Engineering experience across industry

andhighereducation.

— Leadership and strategic advisory positions, including

within government-related science and technology bodies.

— Skilled at advancing diversity in theworkforce.

External appointments

Chief executive and vice-chancellor of Cranfield University.

Stephen Wilson

Independent Non-executive Director

Date appointed to the Board June 2022

Areas of expertise

Software, finance, strategy, business development,

ITtransformation, internationaldevelopment

Contribution, skills and experience

— Extensive experience in the software sector, including

strategic, financial, business development and

ITtransformation.

— Career experience in finance and businessdevelopment,

including inglobalbusinesses.

— Executive and non-executive roles inlisted

companyenvironments.

External appointments

— Non-executive director and audit committee chair of

Canonical Holdings Ltd.

— Member of the Council of the University of Cambridge.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

Audit Committee

Nomination Committee

Remuneration Committee

Committee Chair

Board of Directors as at

22September 2026

Read more extensive Board biographies at

www.renishaw.com/directors

Former officers during FY2026

Allen Roberts

Group Finance Director

Appointed October 1980

Stepped down November 2025

Board of Directors continued

Richard McMurtry

Non-executive Director

Date appointed to the Board July 2024

Areas of expertise

Engineering, robotics, product development

Contribution, skills and experience

— Highly experienced director of various businesses.

— Career experience in overseeing and developing the

future of innovation.

— Trained as an engineer with significant involvement in

product development and robotic systems.

External appointments

Director at Leviathan Engineering Limited and

MoorendLimited.

Kasim Hussain

Group General Counsel & CompanySecretary

Appointed July 2024

Areas of expertise

Risk, compliance, corporate governance, M&A

Contribution, skills and experience

— Adviser to the Board and senior leadership on all matters

of risk andgovernance.

— Responsible for leading the global Legal, Compliance

and Company Secretarial teams.

— Specialist in M&A and strategy.

— Substantial experience in a listed environment.

External appointments None

Camille Deer

Non-executive Director

Date appointed to the Board September 2025

Areas of expertise

IP strategy, innovation pipeline, riskmanagement

Contribution, skills and experience

— IP strategy and portfolio management, innovation pipeline

management, IP due diligence and risk management.

— Purpose-driven innovation and processes and

frameworks topromote IP awareness inthe workplace.

— Experienced in licensing revenue models and related

commercial negotiations.

External appointments

Senior IP Manager at VividQ Ltd.

Renishaw plc Annual Report 2026

CONTENTS

Dave Wallace

Group Operations Director

Appointed January 2008

Contribution, skills and experience

— Responsible for global manufacturing and supply,

Groupcommercial development, quality and product

compliance, engineering and intellectual property.

— Deep insight into Renishaw’s products, markets

andproduct development, aswell as strong

managementskills.

— Worked in various functions of the business, including

asDirector and General Manager for the CMM Products

Division, and previously held Executive Committee

responsibility for industrial metrology products.

Clare Nicholls

Group Human Resources Director

Appointed September 2025

Contribution, skills and experience

— Responsible for defining and overseeing the

implementation of our people strategy, and developing

talent, culture and capability. Also responsible forHR

services, internal communications, and health and

safetyglobally.

— Globally experienced HR leader in the manufacturing

andengineering sector, skilled in business transformation,

culture and engagement, and talent development.

— 25 years’ experience working for companies aligned to

Renishaw’s chosen markets. Joined from TT Electronics,

where she most recently held the post of EVP Human

Resources. Before TT, worked atBoeing across its

non-US business and for Tata Steel and its predecessors

across Europe.

Marc Saunders

Group Strategy Director

Appointed April 2024

Contribution, skills and experience

— Responsible for Group strategy, M&A, investorrelations,

sustainability and external communications.

— Experienced leader of strategic planning processes for

listed businesses.

— Worked in various technical, commercial and

corporatefunctions atRenishaw, including leadership

ofadditive manufacturing applications, UKSales and

Group Marketing.

Executive Committee

Louise Callanan

Director of Specialised Technologies

Appointed October 2025

Contribution, skills and experience

— Leads Renishaw’s Specialised Technologies segment

(additive manufacturing, spectroscopy and neurological).

— Brings extensive experience in driving the Group’s

strategic vision and long-term growth.

— Held a range of senior technical and commercial roles

during a 30-year career at Renishaw, including

Operations Manager to the CEO.

— Supports the Group in delivering world-class product

design, applications and service that meet evolving

global technology demands.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

Other members of the Executive Committee

Will Lee* (Chair)

Chief Executive Officer

See page 60 for biography

John Shipsey*

Chief Financial Officer

See page 60 for biography

Kasim Hussain

Group General Counsel & Company Secretary

See page 62 for biography

* These members of the Executive Committee were also

BoardDirectors during FY2026.

Former Executive Committee members

during FY2026

Allen Roberts

Group Finance Director

Stepped down November 2025

Diane Canadine

Group HR Director

Stepped down August 2025

Executive Committee continued

Rob Macdonald

Interim Group Finance Director

Appointed December 2025

(stepping down 30 September 2026)

Contribution, skills and experience

— Joined Renishaw as UK Finance Manager in June 1999

and has since held a range of senior roles within the

Finance team.

— Has led the finance function on most of Renishaw’s

acquisitions and divestments, working closely with

subsidiaries worldwide.

— Is a qualified chartered accountant and a member

oftheInstitute of Chartered Accountants in England

andWales (ICAEW).

Steve Oakes

Director of Position Measurement

Appointed October 2025

Contribution, skills and experience

— Leads the Position Measurement segment, driving

innovation and strategic growth in optical, magnetic,

inductive and laser encoder systems.

— Joined Renishaw in 1987 as an engineering student and

has since held key operational, commercial and business

management roles across the CMM, machine tools and

encoder divisions.

— Serves as a Board Director at RLS d.o.o. Slovenia,

aRenishaw associate company.

— Acts as the Senior Leadership Team’s sponsor for EDI,

championing inclusive practices across the organisation.

Derek Marshall

Director of Industrial Metrology

Appointed October 2025

Contribution, skills and experience

— Leads Renishaw’s Industrial Metrology segment, with

teams across our range of application and product

development disciplines.

— More than 20 years’ experience at Renishaw, spanning

software and electronics development, business

management and strategic operations.

— Serves as a Board Director of Metrology Software

Products Limited, which contributes to the Group’s

software portfolio.

Renishaw plc Annual Report 2026

CONTENTS

Reporting against the Governance Code

To avoid duplication in this report, the table below provides cross-references to explanations

elsewhere in this report on how we have sought to apply the principles and comply with the

provisions of the Governance Code. We report against other relevant Governance Code principles

and provisions within this Directors’ Corporate Governance Report.

Topic Page(s)

Company purpose (Principle B) IFC

Values (Principle B and Provision 2) IFC, 33, 44, 45

Culture (Principle B and Provision 2) IFC, 33, 44, 45, 47, 48

Workforce engagement (Principle D and Provision 5) 34, 45, 47, 66, 81

Other stakeholder engagement (Principle D and Provision 5) 35 to 36

Strategy and business model (Principle A and Provision 1) 7 to 10

Board decisions and outcomes (Principle C) 71 to 73

Sustainability (Principle A and Provision 1) 37 to 56

Capital allocation 22

Workforce policies and practices (Principle E and Provisions 2 and 6) 43 to 46, and 56

Risk management (Principle O and Provisions 28 and 29) 23 to 32

Scope of disclosures

In this Directors’ Corporate Governance Report, we have

incorporated:

— the Audit Committee Report (page 84);

— the Nomination Committee Report (page 77); and

— the Directors’ Remuneration Report (page 90).

This report is structured in accordance with the five sections of

the Governance Code, and we describe how we have applied its

principles. The 2024 Governance Code applied to the Company

for the first time in FY2026, except for Provision 29, which will

apply from FY2027. Accordingly, Provision 29 of the 2018

Governance Code continued to apply in respect of this financial

year. The Governance Code can be viewed at www.frc.org.uk.

We report on the operation of our business in the following ways:

The Group’s business and likely future developments

The Chair’s statement (pages 2 to 3), the Chief Executive

Officer’s review (pages 4 to 6) and other sections of the Strategic

Report give a review of the Group’s business and likely future

developments. Results are also reported by segment in Note 2

tothe Financial statements, together with an analysis of revenue

by geographical market.

Management Report

The Strategic Report includes a management report, as required

by the FCA’s Disclosure Guidance and Transparency Rules (DTR).

Directors’ Report

The Directors’ Corporate Governance Report and Other statutory

and regulatory disclosures, as set out on pages 122 to 124,

together form the Directors’ Report. The Company has chosen

toinclude matters in the Strategic Report that are required to be

included in the Directors’ Report. These are cross-referred to in

the Directors’ Corporate Governance Report and Other statutory

and regulatory disclosures as applicable and are incorporated

by reference into the Directors’ Report.

Directors’ Corporate Governance Report

The Company’s corporate governance practices are set out in

the Directors’ Corporate Governance Report (on pages 58 to 76),

which forms part of the Directors’ Report, as required by the DTR.

Shareholder information

Certain information, which the FCA’s UK Listing Rules (UKLR)

require that the Company provides to its shareholders,

iscontained in the Directors’ Corporate Governance Report

(pages58 to 76), the Directors’ Remuneration Report (pages90

to121), and Other statutory and regulatory disclosures (pages

122 to 124). This includes information relatingto arrangements

with controlling shareholders.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

Stakeholder engagement, including the AGM

Shareholders

The AGM takes place at the Company’s headquarters or one of

our other main sites, and we send our shareholders appropriate

advance notice of the meeting. The Chairs of the Audit, the

Remuneration and the Nomination Committees are available

forquestions during and after the meeting.

Each year, different resolutions are proposed for each

substantially separate issue, and all resolutions are taken on

apoll. We report on the number of votes lodged in respect of

each resolution, the balance for and against each resolution,

andthe number of votes withheld. This information is published

via a Regulatory Information Service (RIS) and on our website

following the meeting.

At our 2025 AGM, the Board greatly appreciated the opportunity

to speak with attending shareholders. We also have a Q&A

facility, which allows shareholders to submit questions via email

before the meeting. This helps them to engage with the Board,

even when they cannot attend the AGM. At the 2025 AGM, the

Board was pleased that all resolutions were passed with a high

level of support from shareholders. Details of this year’s AGM

can be found in the Notice of Annual General Meeting.

The Company’s overall approach to shareholder engagement is

set out on page 35. Renishaw has continued to strengthen this

engagement, including working with our joint corporate brokers,

UBS and Peel Hunt, to develop a targeted engagement

programme with key existing and potential investors. This year

this included half- and full-year financial results roadshows

attended by our Chief Executive Officer and Director of Group

Strategy, as well as a Capital Markets Day in London attended

by the Board. Feedback from investor discussions is shared

withthe Board. The Board continues to monitor progress with

engagement mechanisms and regularly reviews our evolving

approach to investor relations.

Wider stakeholders

The Board remains committed to engaging effectively with wider

stakeholders to ensure we continue delivering value for them.

Our Independent Non-executive Director Catherine Glickman

remains our designated employee engagement ambassador.

Catherine has extensive HR and remuneration experience, and

the Board believes her background and expertise make her

ideally suited for this role, ensuring our employees’ views reach

the boardroom. Catherine gives the Board helpful feedback from

workforce engagement activities, including joining employee

briefings. Clare Nicholls, our Group Human Resources Director,

and Catherine are working on strengthening the Board’s

employee engagement programme. The Board receives regular

briefings on recruitment, retention and the progress of our key

people projects. In light of this, the Board considers that this

engagement mechanism remains the most appropriate

forRenishaw.

1 Board leadership and

Companypurpose

Purpose, values and culture

Renishaw’s purpose of Transforming Tomorrow Together, as well

as its values of innovation, inspiration, integrity and involvement,

help guide the Board and our people when making decisions.

These principles will help Renishaw grow and evolve without

losing focus on what is important.

A strong culture is needed to ensure Renishaw can achieve its

purpose. The Board is responsible for monitoring and assessing

culture. The Chair sets the culture for the Board, promoting

openness and debate. This informs the culture that the Chief

Executive Officer embeds throughout the business with the

support of the Directors.

Our Code of Conduct (Code) is our global guide on how to

dobusiness responsibly, addressing issues that might arise

forour stakeholders. It is aligned with our core values, acts as

atop-level summary of our key policies, and sets out how we

expect our employees, and other key stakeholders, to act in

theirdaily working lives. Throughout FY2026, the Board received

updates on key issues related to the Code and monitored

compliance, including via the Company’s whistleblowing facility.

Communications and activities continue around theGroup to

engage and educate employees on how to use the Code in

day-to-day business conduct. See pages 47 and 48 for more

information about the Code.

Employees are invited to share their feedback on compliance

through our employee engagement survey. This year wealso

conducted our first Group compliance culture survey. Gathering

feedback is an integral part of how we monitor, reassess and

embed an appropriate culture, so this feedback isshared with

senior leadership to help shape future communications and

workprogrammes. Engagement with employees and

management continues to help the Board understand

Renishaw’s culture. Some of the ways in which the Board

hasengaged with employees, and the outcomes of that

engagement, are set out on page 34.

Renishaw plc Annual Report 2026

CONTENTS

The Board also takes a close interest in the Group’s customers,

the challenges they face and how best Renishaw can support

them. The Board receives regular updates on conversations

thatWill Lee, our Chief Executive Officer, and senior colleagues

have with our customers. In FY2026, members of the Board

visited China and held a Board meeting at our facility in Miskin,

Wales. Directors also visited trade shows, including EMO

Hannover inSeptember 2025, as well as some ofour product

divisions’ showcase events, where there was an opportunity

tointeract withour employees.

More details on other stakeholder engagement activities can be

found on pages 34 to 36. Details of how the Board considered

stakeholders in discussions and decision-making can be found

on pages 71 to 73.

Anti-bribery and corruption

Renishaw is committed to acting professionally, fairly and with

integrity in all its business dealings and relationships wherever

we operate, and to implementing and enforcing effective

systemsto counter bribery and corruption. Renishaw’s policy

isto conduct all its business in an honest and ethical manner.

We take a zero-tolerance approach to bribery and corruption,

which is communicated to third parties with whom we do

business. Our Group Anti-Bribery and Corruption Policy prohibits

the offering, paying, solicitation and receipt of bribes in any form.

In addition, Renishaw’s Gifts and Hospitality Policy requires any

giving or receipt of gifts, benefits or hospitality to be reasonable

and proportionate. We maintain a Gifts and Hospitality Register

and have a straightforward process for employees to seek

approval when needed.

We require third parties to sign up and adhere to anti-bribery

andcorruption clauses, and to comply with anti-bribery and

corruption laws, in all relevant Group companies’ standard terms

and conditions, and standard form and negotiated agreements

(including relationship agreements such as agency, distribution

and consultancy agreements). Anti-bribery and corruption

training is mandatory for all employees.

The Group has due diligence procedures for onboarding

third-party agents and distributors designed to address bribery

and corruption risks, which includes third-party screening.

Employee whistleblowing

The Board encourages our people to raise concerns about

suspected unlawful or unethical behaviour and outlines

itsexpectations in our whistleblowing policy. The Group’s

confidential whistleblowing hotline service, Speak Up, is there

forpeople to raise any concerns about suspected unlawful

orunethical behaviour. The service is also available to officers,

suppliers, customers, consultants, contractors, volunteers and

job applicants, and any third parties who provide services for

oron behalf of the Group. This year we logged 29 cases,

compared with 27 in FY2025, all of which were promptly

followedup.

All cases are reviewed by our triage coordinators (currently the

Interim Group Finance Director and the Group General Counsel

& Company Secretary), unless the matter is about them. In this

instance, a case is allocated to an appropriate investigator.

Everymatter reported is investigated, unless it is considered

outside the scope of Speak Up (for example, if someone raises

an issue that falls under our Grievance Policy). Regular

meetingsare held with key stakeholders to track the progress

ofinvestigations to help ensure cases are closed in a timely

manner. The Board monitors the operation of this policy and

concerns raised.

Conflicts of interest

The Board has a Conflicts of Interest Policy and a Register

ofSituational Conflicts. This includes procedures for the

disclosure and review of any conflicts and potential conflicts,

andauthorisation by the Board (if considered appropriate).

TheBoard reviews all authorisations granted, and their

associated terms, every year. New disclosures are made

whereapplicable.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

2 Division of responsibilities

Governance structure

While the Board has overall responsibility for governance across the Group, it delegates certain matters to its three

formally constituted Committees: the Audit Committee, the Remuneration Committee and the Nomination Committee.

Our Executive Committee is responsible for the operational management of our businesses. It meets once a month and

is chaired by the Chief Executive Officer. The Executive Committee also comprises the Chief Financial Officer and other

members of senior management, as noted on pages 63 and 64. It considers the performance and strategic direction of

our business segments, performance against objectives and other matters of general importance to the Group.

The following chart outlines the governance structure.

Our governance framework

Board Committees

Board

Management Committees

Accountable to shareholders for the long-term sustainable success of the Group. Sets Renishaw’s strategy and priorities and oversees their

delivery to enable sustainable long-term growth. Maintains a balanced approach to risk within a framework of effective internal controls and

considers the interests of our diverse stakeholder groups. Oversees alignment of Renishaw’s purpose, vision, values and evolving culture

and risk with the Group strategy.

Risk Committee

Will Lee, Chair

Supports the Board, together with the

AuditCommittee, to provide oversight and

control of all significant risks across the

Group and to develop its risk management

strategy. Oversees the current and future

risk exposures and risk strategy, develops

and monitors the effectiveness of the risk

management framework, including risk

appetite, risk policies, and key processes

and controls, and promotes a risk-aware

cultureacross the Group.

Read more in the Audit Committee Report

from page 84.

Renishaw plc Annual Report 2026

CONTENTS

Board and Committee meetings

The table below shows the number of meetings of the Board and its Committees, alongside Directors who

attended and the number of meetings they were eligible to attend, during FY2026.

Director Board

Audit

Committee

Nomination

Committee

Remuneration

Committee

Sir David Grant 11/11 N/A 7/7 N/A

John Deer 8/11

N/A N/A N/A

Will Lee 11/11 N/A N/A N/A

John Shipsey 3/3

N/A N/A N/A

Juliette Stacey 10/11

5/5 7/7 6/6

Catherine Glickman 11/11 5/5 6/7

6/6

Stephen Wilson 10/11

5/5 7/7 6/6

Professor Dame Karen Holford

9/11 4/5 7/7 6/6

Richard McMurtry 11/11 N/A N/A N/A

Camille Deer 10/10

N/A N/A N/A

Allen Roberts 4/4

N/A N/A N/A

1 John Deer was unable to attend certain Board meetings due to health issues.

2 John Shipsey was appointed with effect from 13 April 2026 and so was not eligible to attend any meetings held between 1 July 2025

and 12 April 2026.

3 Juliette Stacey was unable to attend an unscheduled Board meeting that was convened at short notice and for which her feedback

was collated ahead of the meeting.

4 Catherine Glickman was unable to attend a Nomination Committee meeting due to an unavoidable commitment.

5 Stephen Wilson was unable to attend an unscheduled Board meeting that was convened at short notice and for which his feedback

was collated ahead of the meeting.

6 Professor Dame Karen Holford was unable to attend two Board meetings (one being an unscheduled meeting that was convened

atshort notice and for which her feedback was collated ahead of the meeting) and one Audit Committee meeting due to

unavoidablecommitments.

7 Camille Deer was appointed with effect from 1 September 2025 and so was not eligible to attend any meetings held between

1 July2025 and 31 August 2025.

8 Allen Roberts stepped down as a Director with effect from 26 November 2025.

The table below sets out the Board and Committee meetings that occurred in FY2026.

July 2025

August 2025

September 2025

October 2025

November 2025

December 2025

January 2026

February 2026

March 2026

April 2026

May 2026

June 2026

Key

Board

Audit Committee

Nomination Committee

Remuneration Committee

Unscheduled meeting

The formal schedule of matters reserved for the Board includes:

— the approval of half- and full-year results, and trading statements;

— company and business acquisitions and disposals;

— major capital expenditure;

— borrowing facilities;

— reviewing the effectiveness of workforce engagement mechanisms;

— reviewing whistleblowing policy and processes;

— maintaining a sound and effective risk management and internal

controlframework;

— forecasts, business plans and budgets;

— material agreements;

— director and company secretary appointments and removals;

— patent-related disputes and other material litigation; and

— major product development projects.

The formal schedule of matters reserved for the

Board and the terms of reference for each of the

Audit Committee, Nomination Committee and

Remuneration Committee are available at

www.renishaw.com/corporategovernance.

Theseterms of reference are reviewed annually

andupdated where necessary.

A framework of delegated authorities maps out

thestructure below the Board and includes the

matters reserved to the Executive Committee.

Italso includes the level of authorities given to

management below the Executive Committee.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

The Board’s key activities during the year

Below is a high-level summary of the activities of the Board during the year. For an in-depth look into some

key decisions made by the Board in FY2026, see our Section 172 statement on pages 71 to 73.

Risk management and internal control

— Approved our 2026 principal risks and considered

emergingrisks.

— Considered reports on compliance with financial,

regulatory, corporate responsibilities and

sustainability commitments.

— Received regular updates on cases arising from the

confidential whistleblowing hotline.

— Considered the results of our FY2026 global

employee engagement survey and the introduction

ofthe Group compliance culture survey.

— Reviewed global supply chain resilience.

Governance and stakeholders

— Oversaw the FY2026 externally facilitated Board

performance review by Fidelio and approved the

subsequent action plan.

— Considered the implications of the establishment of

ajoint family holding company, Deltam Holdings

Limited, by the families of the Company’s founders,

thelate Sir David McMurtry and current Non-executive

Director John Deer.

— Received updates on key governance matters,

including the EU Cyber Resilience Act, AI, revision

ofUK Listing Rules, the new Economic Crime and

Corporate Transparency Act and Directors’ duties.

— Reviewed an internal maturity assessment against the

UK Cyber Governance Code of Practice.

— Received externally facilitated training by Herbert Smith

Freehills Kramer LLP.

— Reviewed our registers of Directors’ situational

conflicts and related parties.

— Considered investor relations practices and engaged

with theinvestor community on Capital Markets Day.

— Approved our Modern Slavery Statement.

— Considered cyber risk and received regular updates

on the threat landscape and mitigations.

— Received updates from our corporate broker UBS

oninvestor relations.

Strategy

— Guided the process for divesting the drug

deliverybusiness.

— Reviewed and approved our strategic objectives.

— Received updates from the Executive Committee

onprogress towards the FY2026 objectives.

— Reviewed the sales and competition strategy

duringthe Board Strategy Day.

— Directors visited China and attended trade fairs/shows

to better understand dynamic geographical markets

andsectors.

Operational/commercial

— Received regular flagship project updates as well as

key innovation pipeline updates.

— Received regular regional sales and Group

manufacturing capacity updates because of

strongdemand.

— Received updates on the global ERP implementation

programme.

Financial

— Approved our half- and full-year results, as well as our

interim and final dividends, and a special dividend to

be paid on 3 December 2026.

— Reviewed and approved our tax strategy.

— Reviewed and approved trading updates, including

revenue and profit ranges.

— Reviewed and updated our five-year financial plan.

— Approved the revised hedging strategy.

Leadership and people

— Approved the appointment of a permanent Chair,

CFO, new Senior Independent Director and new

Group Human Resources Director.

— Reviewed plans for Board-level succession planning.

— Developed a new Remuneration Policy including

aLong-Term Incentive Plan, both subject to

shareholder approval at the 2026 AGM, following a key

shareholder consultation exercise conducted in 2026.

— Reviewed and approved the employee pay increase

and bonus proposal for FY2026.

Renishaw plc Annual Report 2026

CONTENTS

Section 172 statement

Directors are required by Section 172 of the Companies Act

2006 to act in a way that they consider, in good faith, is most

likely to promote the success of the Company for the benefit

ofits members as a whole. In doing so, they must also have

regard to wider responsible business behaviour, including:

— the likely consequences of any decision in the long term;

— the interests of the Company’s employees;

— the need to foster the Company’s business relationships

withsuppliers, customers and others;

— the impact of the Company’s operations on the community

and the environment;

— the desirability of the Company maintaining a reputation for

high standards of business conduct; and

— the need to act fairly between members of the Company.

Not only is this the Directors’ statutory duty, but it is also

therightway to conduct business to achieve long-term,

sustainable success. Effective and inclusive decision-making

isat the heart of Renishaw’s governance structures and is

afoundation for effective value creation over the longer term.

During this financialyear, with continuing global economic

uncertainty andgeopolitical conflicts, balancing the needs

andexpectationsofstakeholders has continued to be an

importantand challenging task.

The Board takes its role of fulfilling its obligations to those

affected by Renishaw’s business very seriously, through

stakeholder consideration and engagement. It has ensured

thatsuch consideration is embedded throughout the business,

with the Executive Committee and senior management actively

engaged in communication and engagement initiatives.

How has the Board had regard to

Section172matters?

Engagement with employees, suppliers and customers during

the year is explained on pages 34 to 36. Details of how the

Board operates, and matters considered by the Board, are

setout in the Directors’ Corporate Governance Report from

page58. The Directors regularly consider reports on health

andsafety, the environment and security. This supports the

Directorsin their decision-making, helping them understand

theimpact those decisions have on local communities and the

environment. It is critical to Renishaw’s success that high

standards of business conduct are promoted.

The Legal and Secretariat, Quality, Compliance, HR and

Sustainability teams also report regularly to the Board.

Thenon-financial and sustainability information statement on

page 56 identifies policies and guidelines governing Renishaw’s

approach to climate-related financial disclosures, environmental

matters, people, anti-corruption and anti-bribery, social matters

and human rights. Considering the long-term effect of the

decisions made by the Board is an integral part of the approval

of strategy, and strategic progress this year is disclosed

onpage9.

How did the Directors discharge their Section

172 duty during the year?

The Directors recognise that the decisions they make today

willaffect the business in the long term. It is acknowledged that

different stakeholders have different needs, so the Board tries

tounderstand these needs and priorities through engagement

toinform its decision-making. This, together with considering

thelong-term consequences of decisions and maintaining

ourvalues and reputation for high standards of business

conduct, underpins the way the Board operates and its

governance framework.

In understanding the needs and priorities of stakeholders,

theBoard also acknowledges that situations may arise where

stakeholder groups have conflicting priorities. When this

happens, the Board considers the priorities of each group.

TheBoard assesses them individually and collectively from

theperspective of the strategic objectives and the continued

long-term sustainable success of the business.

This statement, together with pages 66 and 67, explains how

theDirectors have:

— engaged with employees, shareholders, customers,

suppliersand communities; and

— considered:

• employees’ interests;

• the need to act fairly between members of the Company;

• the need to foster business relationships with suppliers,

customers and communities;

• the impact of Renishaw’s operations on the community

and environment;

• Renishaw’s reputation for high standards of business

conduct; and

• the outcomes of those considerations on the principal

decisions taken during the financial year.

In this statement, principal decisions of the Board are defined

asthose taken in this financial year, which relate to matters of

keystrategic importance, and which are significant to any of

Renishaw’s key stakeholders.

Principal decisions in FY2026

The following pages set out three examples of how the Board

considered key stakeholders, Section 172 duties and other

matters when making its principal decisions in FY2026.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Chief Financial Officer appointment

What was the principal decision? Which stakeholders and matters were considered?

Appointing a new CFO. Shareholders and investors, customers, suppliers, our

companies, people and business partners, as well as the

long-term sustainable success of the Company.

How were the above stakeholders and matters considered?

Strong talent and leadership are key to Renishaw’s ongoing success and delivering our strategy. Ensuring

succession ofkey leadership roles will position Renishaw to continue producing strong returns and growth for our

shareholders and wider stakeholders, while implementing our strategy. The Board considered a range of factors

during the process of finding and recruiting a CFO, including ongoing alignment with the Group’s purpose, culture

and strategy. The Board was mindful throughout its decision-making of the long-term impact that such a decision

would have on the future success of the Company, including through investor and employee sentiment.

What was the outcome?

The Company was pleased to announce that, following a comprehensive search process, the Board had

appointed JohnShipsey as Chief Financial Officer and Executive Director, with effect from 13 April 2026.

For more information on the CFO’s appointment, see page 83.

Long-Term Incentive Plan

What was the principal decision? Which stakeholders and matters were considered?

Proposed changes to the Directors’ Remuneration

Policy including the introduction of a Long-Term

Incentive Plan (LTIP).

Shareholders and other market participants, our

companies, regulators, employees, customers, suppliers

and the long-term sustainable success of the Company.

How were the above stakeholders and matters considered?

The Board reviewed the current Remuneration Policy including the alignment of reward design with the Company

strategy. Inconsidering changes it considered:

— feedback provided by shareholders and shareholder representative agencies via a consultation exercise;

— the views of Non-executive Directors;

— our business and talent strategy;

— prevailing market practice; and

— remuneration arrangements in place for the wider Renishaw workforce.

The Board discussed potential changes with the Company’s advisers, including its remuneration advisers and

joint brokers. Italso listened to feedback provided in the 2026 employee engagement survey.

What was the outcome?

As part of the design of a new Directors’ Remuneration Policy, the Board approved changes to introduce an LTIP

– subject toshareholder approval at the 2026 AGM and effective from FY2027. The aim is to strengthen alignment

of reward to the Company strategy and ensure ongoing market competitiveness, contingent on business

performance delivery.

The changes to the Directors’ Remuneration Policy (including the introduction of LTIP awards cascaded to senior

leaders across the business) are intended to ensure we can continue to attract and retain high-calibre executives

and align them to sustained performance delivery.

For more information on the LTIP, see pages 98 and 103.

Directors’ Corporate GovernanceReport continued

Renishaw plc Annual Report 2026

CONTENTS

ERP implementation

What was the principal decision? Which stakeholders and matters were considered?

Commissioning an external review of our programme

to implement a new enterprise resource planning

(ERP) system.

Employees, shareholders, customers and the long-term

sustainable success of the Company.

How were the above stakeholders and matters considered?

With our current ERP system near the end of its supported life, it is critical that we successfully implement

itssuccessor.

Renishaw UK Sales Limited went live on the new ERP system in October 2025, but encountered significant

difficulties. Thanksto the dedication and professionalism of our employees there was no material impact on

customers, but productivity gains have not been realised.

Given the importance of the programme, the Board commissioned a third-party expert to conduct a review.

What was the outcome?

The recommendations of the third-party expert were approved by the Board, and are already being applied to

theprogramme. We have reorganised our resources, including establishing global process owners and leads,

and developed our project management framework.

Project governance has been strengthened and a steering committee, which includes the CFO and Group

Operations Director, will oversee the revised implementation framework.

For more information on our IT transformation, see pages 26 and 29 of the Risk management section.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

This year’s external Board performance review concluded that

the Board remains effective. More details can be found on

pages81 and 82.

The terms of appointment of the Non-executive Directors set

outthe expected time commitment, as well as the requirement

todiscuss any changes to other significant commitments with

the Chair and Chief Executive Officer in advance. The terms

areavailable for inspection at the Company’s AGM and its

registered office on written request.

Neither of the Executive Directors hold a directorship in

aFTSE100 company.

The Board considers that Renishaw’s Non-executive Directors

demonstrate commitment to their roles and dedicate sufficient

time to their Company duties. Each of the Independent Non-

executive Directors provides support to the Board, particularly

on areas related to their skills and experience, which for

Catherine Glickman is HR matters, for Juliette Stacey is finance,

for Stephen Wilson is the software sector, global business and

investor relations, and for Professor Dame Karen Holford is

engineering and research and development. More details of

theircontribution, skills and experience are summarised in their

biographies on pages 60 to 62.

Senior Independent Director and Non-executive Directors

Juliette Stacey was appointed as the Company’s Senior

Independent Director on 8 April 2026 and is available to discuss

material concerns with shareholders, or, where this channel has

failed to resolve concerns or this contact is inappropriate, the

Company Secretary may be contacted, who will direct enquiries

to the appropriate Director. Juliette was originally appointed

asan Independent Non-executive Director of the Company on

1 January 2022 and has been Chair of the Audit Committee and

served as a member of the Nomination and the Remuneration

Committees since her appointment.

During the year, the Non-executive Directors and Chair met

without the Executive Directors on several occasions in private

sessions to discuss performance, corporate governance and

other matters. The Independent Non-executive Directors

alsoregularly met in private sessions without the other

Directorspresent.

2 Division of responsibilities

continued

Composition and commitment of the Board

The Governance Code provides that at least half a board,

excluding the chair, should be independent non-executive

directors. At the date of this report, the Board comprises 10

Directors: the Chair, two Executive Directors, four Independent

Non-executive Directors and three Non-executive Directors.

Accordingly, four of the nine Directors excluding the Chair (44%)

are considered to be independent. More details are set out in

theCompliance statement on page 76.

Catherine Glickman, Juliette Stacey, Stephen Wilson and

Professor Dame Karen Holford are the Non-executive Directors

considered to be independent in character and judgement,

andthere are no relationships or circumstances that are likely

toaffect their judgement. Sir David Grant was considered

independent on appointment as Chair.

Sir David Grant’s tenure

Sir David Grant was first appointed to the Board as

anIndependent Non-executive Director in April 2012.

FollowingSir David McMurtry’s decision to step down as

Executive Chairman of the Company in 2024, the Board

concluded that it was in the best interests of the Company

for Sir David Grant, as the then Senior Independent Director,

to remain on the Board as Interim Chair to provide continuity

and facilitate succession planning. In April 2026, the Board

decided to appoint Sir David as its permanent Chair,

foraperiod of up to two years. The Board considered that

Sir David had consistently demonstrated the competencies

and leadership required of the Chair and that his permanent

appointment isin the best interests of the Company and its

shareholders at this time.

Before his appointment as permanent Chair, the Nomination

Committee conducted a rigorous review of Sir David Grant’s

independence, effectiveness and commitment given his

service on the Board for 14 years. Sir David did not

participate in these discussions. Following recommendation

by the Nomination Committee, the Board concluded that

SirDavid continued to be independent in character

andjudgement, and there were no relationships or

circumstances that are likely to affect, or could appear

toaffect, his judgement. Considering this assessment,

SirDavid Grant was considered to be independent on

appointment as permanent Chair for the purposes of

Provision 9 of the Governance Code.

The Board considers that the appointment of Sir David

aspermanent Chair for a period of up to two years while

anew independent Chair is identified will provide continuity

and stability during an important period of evolution for the

Company. Inaddition tohis deep understanding of the

Company’s business and his expertise in engineering,

SirDavid will be able to serve as a mentor to the newly

appointed Directors.

Renishaw plc Annual Report 2026

CONTENTS

Division of responsibilities

There was a clear division of responsibilities at Board level

throughout FY2026. This ensured that there was an appropriate

balance of power and authority, so there is no one person

withunfettered powers of decision-making. The Board and

ExecutiveCommittee each meet on a regular basis to make

decisions of significance to our business segments and review

management actions.

You can find written statements of the key responsibilities of our

Chief Executive Officer, Chair and Senior Independent Director

at www.renishaw.com/corporategovernance.

Director development

The Company offers its Directors the opportunity to attend

formaltraining courses regarding their duties. The Company also

provides them with guidance notes, papers and presentations on

changes to law and regulations, as appropriate. Non-executive

Directors are invited to attend internal events, which are a great

way to keep up to date with product development and marketing

initiatives. These events are also an opportunity for the Non-

executive Directors to engage with business units and functions.

This year, members of the Board received two external training

sessions. The first, from Herbert Smith Freehills Kramer LLP,

covered updates on audit and corporate governance, reforms

tothe UK listing regime and recent developments in directors’

duties. The second training session was led by UBS and

covered relevant updates on investor relations and

marketsentiment.

Business leaders – including from the finance and legal

functions, segments and sales regions – give regular

presentations at Board meetings to update the Directors

ontheirareas of responsibility, including updates regarding

products, performance, legal compliance and business

strategies. These also give the Directors the chance to

discusslatest developments, and currentand future initiatives.

As new Directors joining us this year, Camille Deer and

JohnShipsey were given tailored induction packs and bespoke

induction programmes. These inductions included subsidiary

and site visits, as well as briefings by both senior managers

andexternal advisers. As part of our continuing development

programme, we also offer opportunities to attend external

tradeshows and make visits to overseas subsidiaries.

Information and support

Board members receive business updates, financial information

and forecasts with relevant commentaries in advance of each

Board meeting. These allow the Directors to review financial

performance, current trading and key business initiatives.

Directors also have access to the Company Secretary, who

advises the Board on all governance matters. Where necessary,

the Directors have access to independent professional advice,

atthe Company’s expense, to discharge their responsibilities

asDirectors. The Company maintains liability insurance for

theDirectors and officers and has entered into indemnities,

asdisclosed in Other statutory and regulatory disclosures

onpage122.

3 Composition, succession

andevaluation

Nomination Committee

A description of the membership and activities of the

NominationCommittee, as well as the Board’s commitment

todiversity, can be found on pages 77 to 83.

Election and re-election of Directors

In accordance with the Governance Code, all the Directors

retirefrom the Board at each AGM and continuing Directors offer

themselves for re-election or, in the case of any Director who was

first appointed to the Board since the last AGM, election to office.

4 Audit, risk and internal control

Audit Committee

A description of the membership and activities of the Audit

Committee is set out on pages 84 to 89.

Financial and business reporting

The respective responsibilities of the Directors and auditor in

connection with the financial statements are set out in Directors’

responsibilities on page 125 and the Independent Auditor’s

Report on pages 128 to 138.

Risk management and internal control

The Board is responsible for risk management and internal

control, and for reviewing the effectiveness of this framework.

The Group has an established process for the review of business

risks throughout the Group, which includes the Risk Committee.

More information on Renishaw’s risk management and internal

controls can be found in the Risk management section on

pages23 to 26. Any framework of internal control is designed

tomanage rather than eliminate the risk of failure to achieve

business objectives and can only give reasonable, but not

absolute, assurance against material misstatement or loss.

The Board has overseen a robust assessment of the principal

and emerging risks that Renishaw faces, including those that

would threaten the Group’s business model, future performance,

solvency or liquidity. Renishaw’s principal risks and uncertainties,

and information on how these are being managed or mitigated,

as well as the procedures in place to identify and manage

emerging risks, can be found on pages 27 to 32. The Board

issatisfied that thereis an ongoing process for identifying,

evaluating and managing the significant risks that the Group

faces. This is regularly reviewed and accords with the FRC

Corporate Governance Code Guidance (2024). The Board

verifies thatnecessary action has been or is being taken to

remedy anysignificant failings or weaknesses identified from

itsreview.

The Board reviews the effectiveness of the Company’s risk

management and internal control framework via the Audit

Committee. See pages 84 to 89 for more information on the

AuditCommittee’s work.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Corporate GovernanceReport continued

Going concern

The Directors have assessed the Group’s position as a going

concern and updated the assessment before signing this report.

The Board considered the Group’s forecast profits and cash

flows for the period from the date of approval of the Annual

Report to 31 December 2027 (the ‘going concern period’).

TheBoard is satisfied that the Group has adequate resources

tocontinue operating as agoingconcern for the foreseeable

future, and that no material uncertainties exist with respect to

thisassessment. The Board therefore considers it appropriate

tocontinue to adopt the goingconcern basis in preparing the

consolidated financial statements. For more information,

seepages 87 and 147.

Viability statement

The Board approved the Company’s viability statement on

page33.

5 Remuneration

The methods used to apply the Governance Code principles

relating to remuneration are set out in the Directors’

Remuneration Report. A description of the membership and

activities of the Remuneration Committee is set out on page 110.

Compliance statement

The Board considers that it has complied with the provisions

ofthe Governance Code throughout FY2026, except in relation

to the following matters:

— Provision 19 (that the chair should not remain in post beyond

nine years from the date of their first appointment). As noted

on page 74, Sir David Grant was first appointed to the Board

as an Independent Non-executive Director in April 2012 and

has now served on the Board for more than 14 years. He was

appointed as Interim Non-executive Chair on 1 July 2024 and

as permanent Chair on 8 April 2026 for a period of up to two

years. The Board concluded that it was in the Company’s

best interests for Sir David to take on this role to provide

continuity and stability during an important period of evolution

for the Company. The Board considered that Sir David had

consistently demonstrated the competencies and leadership

required of the Chair. In addition to his deep understanding

ofthe Company’s business and his expertise in engineering,

Sir David will be able to serve as a mentor to newly appointed

Directors and support the recruitment of a new independent

Chair. As noted on page 74, the Nomination Committee

conducted a rigorous review of Sir David’s independence,

effectiveness and commitment before his appointment as

permanent Chair, and concluded that he continued to be

independent in character and judgement for the purposes

ofProvision 9 of the Governance Code.

— Provision 11 (that at least half the board, excluding the chair,

should be non-executive directors whom the board considers

to be independent). As at the date of this report, four of the

nine Directors excluding the Chair (44%) are Independent

Non-executive Directors, down from 50% following Camille

Deer’s appointment as a Non-executive Director on

1 September 2025. The Board acknowledges this shortfall

butconsiders that at all times there has been sufficient

Independent Non-executive Director oversight on the Board.

— Provision 12 (that the board should appoint one of the

independent non-executive directors to be the senior

independent director). As noted on page 74 and reported

lastyear, as a result of Board changes that took place

in2024and the Board’s intention to appoint a new Senior

Independent Director once a new Chair was appointed, there

was no Senior Independent Director in post until 8 April 2026,

when Juliette Stacey was appointed to the role, coinciding

with Sir David Grant’s appointment as permanent Chair.

Sir David Grant

Chair

22 September 2026

Renishaw plc Annual Report 2026

CONTENTS

Our priorities for FY2027

Over the coming year, our focus will be on:

— succession plans for senior management and strengthening

the pipeline of future talent atExecutive Committee level

andbelow;

— monitoring the diversity initiatives and progress against

Boardand senior management diversity targets;

— continuing our search for a new Chair;

— continuing to monitor progress against the outcomes of the

Board performance review in relation to the Committee; and

— reviewing the Board composition and skills, backgrounds

andexperience.

Sir David Grant

Chair of the Nomination Committee

22 September 2026

The year in review

FY2026 was an important year for Renishaw for Board and

Executive Committee succession.

John Shipsey joined the Board as Chief Financial Officer and

Executive Director; Juliette Stacey was appointed to the role

ofSenior Independent Director; Camille Deer, granddaughter

ofJohn Deer, joined the Board as a Non-executive Director;

andIaccepted the role of permanent Chair for a period of up

totwo years. More information on Board changes during the

yearis set out onpage 58.

The Executive Committee was further strengthened during the

year with the appointment of Clare Nicholls as our new Group

Human Resources Director. Clare succeeds Diane Canadine

who retired inAugust 2025. Our three segment directors,

LouiseCallanan (Specialised Technologies), Derek Marshall

(Industrial Metrology) and Steve Oakes (Position Measurement)

were also appointed as Executive Committee members.

Meeting Board diversity targets

We improved Board diversity during FY2026. Following the

appointment of Camille Deer as a Non-executive Director on

1 September 2025, the proportion of female Directors increased

from 33% to 40%. We also appointed Juliette Stacey as Senior

Independent Director on 8 April 2026. As a result, the Board

meets the UK Listing Rules targets of at least 40% female

representation and one senior Board position held by a woman.

As part of our future Board recruitments, we will ensure

candidates from broad and diverse backgrounds are included

inthe shortlist, while continuing to appoint on merit against

objective criteria.

External Board performance review

During the year, we engaged Fidelio to conduct an independent

review of the Board. I outline the process and results in detail

onpages 81 to 82. I am pleased to report that the review

confirmed that the Board and its Committees have operated

effectively inaperiod of transition, with Directors demonstrating

strong commitment, constructive challenge and an openness

tofurther enhance effectiveness. It also confirmed that the

Boardhas provided the right support to the founder families’

representative Directors as they build their understanding

oftheCompany.

The review provided recommendations on areas for

improvement, too, including stronger emphasis on topics like

strategy and risk. The recommendations are a good opportunity

to challenge ourselves to go further, and I’m particularly keen

toensure that we continue to deepen our strategic discussions.

By doing so, we can better support the Executive Committee

through the shifts in Renishaw’s competitive, geopolitical and

digital landscape and provide the appropriate challenge to

ensure the business is set up for long-term success.

Nomination Committee Report

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Nomination Committee Report continued

Key activities

The Committee’s key areas of focus during FY2026 included:

Skills assessment and succession planning

— Oversaw the selection process and recommended the

appointment of John Shipsey as Chief Financial Officer,

following Allen Roberts stepping down from his role as Group

Finance Director in November 2025.

— Recommended the appointment of Sir David Grant as

permanent Chair from 8 April 2026, following a process led

by Catherine Glickman as the longest-serving Independent

Non-executive Director. Sir David Grant did not participate

inthe Committee’s decision relating to his appointment.

— Recommended the appointment of Juliette Stacey to the role

of Senior Independent Director from 8 April 2026.

— Continued the search for a new independent Chair of the

Board, under the leadership of Juliette Stacey following her

appointment as Senior Independent Director.

— Recommended the appointment and oversaw the induction

of Camille Deer as a Non-executive Director.

— Recommended the reappointment of John Deer.

— Reviewed the structure, size and composition of the Board

and its Committees.

— Considered succession planning for the Board and

Executive Committee.

— Considered the appointment of a new Group Human

Resources Director, along with the appointment to the

Executive Committee of the Director of Specialised

Technologies, Director of Position Measurement and Director

of Industrial Metrology.

— Reviewed and supported the creation of a new Group Sales

and Marketing Director role on the Executive Committee.

— Reviewed talent and succession plans for key senior

operational and executive roles.

Governance

— Reviewed the Committee’s terms of reference.

— Reviewed the time commitment required of the Non-

executive Directors and evaluated whether sufficient time

was being committed to deliver their duties.

— Assessed the independence of each Non-executive Director,

agreeing that all Non-executive Directors (excluding

JohnDeer, Richard McMurtry and Camille Deer)

wereindependent.

— Recommended the Board support Directors standing for

election or re-election at the 2025 AGM.

— Reviewed and approved the FY2025 Nomination

CommitteeReport.

Board performance review

— Arranged the FY2026 external Board performance review.

— Reviewed the results of the performance review in relation

tothe Committee’s own performance, and any items relating

tothe composition of the Board and succession planning.

Role and responsibilities

The Committee operates under terms of reference, which

arepublished at www.renishaw.com/corporategovernance.

TheCommittee is primarily responsible for:

— reviewing the size, structure and composition – including

thebalance of skills, knowledge, experience and diversity

– of the Board and its Committees (taking into consideration

the outcome of the Board performance review), and

recommending changes to the Board, as appropriate;

— overseeing succession planning for the Board and other

senior management. In doing so, it considers how to create

apipeline for succession that promotes diversity, inclusion

and equal opportunity. The Committee also takes into

account the leadership skills and expertise required in the

future to achieve the Group’s strategic goals;

— recommending to the Board its policy on equality, diversity

and inclusion (EDI) as it applies to the Board and its

Committees, objectives, appointments and link tostrategy;

— leading the process for new Board appointments and

nominating candidates for appointment;

— reviewing the performance of Directors, and making

recommendations to the Board on their re-election at the

AGM; and

— overseeing the annual Board performance review process.

Members and attendance

The Committee is chaired by Sir David Grant. The other four

members are the Independent Non-executive Directors. Only

Committee members are entitled to attend meetings, although

the Committee Chair regularly invites the CEO to attend, unless

discussions are due to take place about his role. The Committee

met on seven occasions during FY2026.

Attendance for each of the members at these meetings is set

outin the table below:

Committee member Attended

Sir David Grant (Chair) 7/7

Juliette Stacey 7/7

Catherine Glickman 6/7

Stephen Wilson 7/7

Professor Dame Karen Holford 7/7

Renishaw plc Annual Report 2026

CONTENTS

Board composition

The Committee has considered the composition of the Board,

including the tenure and independence of the Non-executive

Directors, together with the balance of skills, experience

anddiversity.

Additionally, the external Board performance review conducted

during the year included an assessment of Board composition

and the Board’s skills. The review confirmed that the Board

hasstrong finance, engineering and innovation expertise,

andidentified opportunities to further strengthen experience

inmanufacturing, customer industry anddigital technology.

TheCommittee will seek to address these areas through

futureBoard recruitment. The Committee believes there is

ahealthy mix of tenure lengths that balance experience with

fresh perspectives.

The Committee recognises the importance of independent

Non-executive Directors in providing effective challenge and

oversight. While less than half of the Board are currently

independent, this will be taken into account as part of ongoing

Board composition and succession planning.

Time commitments

The Committee recognises the importance of all the Directors

having the time needed to perform their roles effectively and

avoiding overboarding. At its meeting held in September 2025,

the Committee reaffirmed the expected time commitment for

non-executive roles and considered the external commitments

ofthe Directors, including the number and nature of the roles.

The Committee also considered the external commitments of

Camille Deer and John Shipsey before their appointments.

The Committee concluded that the Directors were dedicating

sufficient time to their roles, as evidenced by their Board and

Committee attendance record, time spent mentoring senior

management and, in the case of Catherine Glickman, engaging

with employees. A register of Directors’ external commitments

isalso maintained by the Company, which is monitored during

the year.

Diversity

The Committee appreciates the benefits that all forms of diversity

(including aspects beyond gender and ethnicity) can bringto

Board discussions, through wide-ranging perspectives and

experience. The Committee recognises that for the engineering

sector to achieve its full potential, it is important that it mirrors

thesociety in which it operates.

The Group’s Equality, Diversity and Inclusion (EDI) Policy and

standards are applied when reviewing the composition of the

Board and its Committees, overseeing succession planning,

recommending changes totheBoard and Senior Leadership

Team, and nominating candidates for appointment. Recruitment

consultants hired bythe Company are chosen on the basis that

they will present adiverse list of candidates, including women

and people from ethnic minority backgrounds.

Under the Group’s EDI Policy, the Board is responsible for

developing a diverse pipeline for succession to senior

management and Board roles, which it does with the help

oftheCommittee. The Board is also responsible for working

towards greater diversity atBoard level, having regard to the

targets set out in the UK Listing Rules (UKLR), being:

(i) at least 40% of the individuals onthe Board are women;

(ii) at least one of the positions of Chair, Chief Executive Officer,

Senior Independent Director or Chief Financial Officer is held

by a woman; and

(iii) at least one individual on the Board is from a minority ethnic

background.

The Committee will continue to focus on improving all forms

ofdiversity at senior management level across the Group and

monitor the EDI initiatives taking place throughout the Group,

including policies to support a diverse intake into the industry.

Renishaw’s approach to diversity across the Group more widely

is set out on pages 43 to 44.

For the purposes of the UKLR, the gender identity and

ethnicbackground of the Board and executive management

(asat 30 June 2026) is reported in the tables on the following

page. Thedata was collected by a combination of pre-existing

internal records and asking each member of the Board and

executive management to indicate their gender and ethnicity

according tothe categories presented in the tables. References

to executive management include the members of the Executive

Committee (including the Executive Directors).

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Nomination Committee Report continued

Role

Executive

Non-executive

Gender

Female

Male

Tenure

0-3 years

4-8 years

9+ years

Information regarding Board members (as at 30 June 2026)

Gender representation of the Board and executive management as at 30 June 2026

Gender identity

Number

of Board

members

Percentage of

the Board

Number of senior

positions on the

Board (Chair, CEO,

SID ,CFO)

Number in

executive

management

Percentage of

executive

management

Men 6 60 3 8 80

Women 4 40 1 2 20

Not specified/prefer not to say – – – – –

Ethnic representation of the Board and executive management as at 30 June 2026

Ethnic background

Number

of Board

members

Percentage of

the Board

Number of senior

positions on the

Board (Chair, CEO,

SID ,CFO)

Number in

executive

management

Percentage of

executive

management

White British or other White

(includingminority-white groups) 10 100 4 9 90

Mixed/Multiple ethnic groups – – – – –

Asian/Asian British – – – 1 10

Black/African/Caribbean/Black British – – – – –

Other ethnic group – – – – –

Not specified/prefer not to say – – – – –

Board diversity

As shown in the table below, during FY2026 the proportion

ofwomen Directors increased from 33% to 40% following the

appointment of Camille Deer as a Non-executive Director on

1 September 2025, while Juliette Stacey was appointed as

Senior Independent Director on 8 April 2026. Asaresult, the

Company met the UKLR targets of 40% women and having

oneof the senior Board positions (Chair, Chief Executive Officer,

Senior Independent Director or Chief Financial Officer) held

byawoman. However, the Company has not yet met the

UKLRtarget of having a director on the Board from aminority

ethnic background.

The Committee remains committed to ensuring candidates

frombroad and diverse backgrounds (including candidates

whomay not have prior listed-company experience) are

includedin shortlists in current and future recruitment searches

while continuing to appoint on merit against objective criteria.

Byensuring a diverse range of candidates are included on

shortlists for Board appointments, the Committee is hopeful

thatthe Board will align with the remaining UKLR target in

duecourse.

The Committee believes that the current Directors bring

adiverse range of perspectives, and that they continue

tofulfiltheir roles effectively considering their experience,

skillsandcompetencies.

Renishaw plc Annual Report 2026

CONTENTS

Board performance review

The Board conducts an annual review of its performance

andeffectiveness to identify opportunities for improvement.

TheBoard last conducted an external review in FY2023.

Internalreviews were subsequently undertaken in FY2024

andFY2025. Accordingly, an external review was conducted

inFY2026, inlinewith the Governance Code.

Progress on key findings from the FY2025 review

The 2025 Annual Report reported on the FY2025 internal

Boardperformance review. Progress on the main outcomes

isoutlined in the table below.

FY2026 Board performance review

The Nomination Committee commissioned an external

performance review of the Board and its Committees during

FY2026, in line with the Governance Code. The Chair, supported

by the Group General Counsel & Company Secretary, led the

selection process for anindependent board evaluator, meeting

with a number of specialist providers. Following this process,

theBoard approved the appointment ofFidelioPartners LLP

(Fidelio) to undertake the review. Fideliohas no other connection

with the Company or its Directors and had not previously been

engaged by Renishawtoconduct a Board performance review.

Senior management diversity

There were some changes in the Executive Committee

duringthe year. Clare Nicholls joined as theGroup Human

Resources Director on 1 September 2025. InOctober 2025,

Louise Callanan, Director of Specialised Technologies,

SteveOakes, Director of Position Measurement, and

DerekMarshall, Director ofIndustrial Metrology were appointed

to the Executive Committee. As a result, as shown inthe table

onpage 80, asat30 June 2026 the proportion ofwomen on

theExecutive Committee increased to 20% (30 June 2025: 17%),

while the ethnic diversity representation onthe Executive

Committee decreased to 10%.

Senior management, being the Executive Committee (including

Executive Directors) and their direct reports (excluding those

inadministrative or non-managerial roles), is made up of 49 men

and 14 women (22%). UK-based senior management consisted

of 57 people, of whom 1 (1.8%) self-identified as being from an

ethnic minority.

Renishaw has set a target of 40% women in senior management

across the Group, and an ethnic-minority target of 10% of

UK-based senior management. However, we always knew

ourtargets were ambitious. In FY2027 we will commission

aspecialist gender equity consultancy to recommend actions

forachieving our targets. These targets are also part of our ESG

strategy, which is monitored by the ESG Steering Committee. It is

hoped this increased focus and greater accountability at various

levelsof the business will result in more diversity in our senior

management in the coming years. See page 43 for more details.

Key findings from the FY2025 Board performance review

Strategy Culture and workforce engagement Board composition

Actions

forFY2026

Hold two strategy sessions

annually, usingexternal

facilitators where

appropriate.

Non-executive Directors to have higherlevels of workforce

engagement through an increased number of

communication sessions.

Focus on broadening the

range of skills and expertise

on the Board as part of new

Director recruitment.

Progress

made in

FY2026

A full-day strategy session

was held in March 2026.

More actions have

beenincorporated into

thebroader strategy

discussions underpinning

the FY2026 Action Plan.

Clare Nicholls, Group Human Resources Director, and

ourdesignatedemployee engagement ambassador

andRemuneration Committee Chair, Catherine Glickman,

areworking on strengthening the Board’s employee

engagement programme.

Following conversations with employees duringa visit

toChina in October 2025, our Non-executive Director

Camille Deer shared common themes with theBoard.

The Board has appointed

JohnShipsey as Chief

Financial Officer, who

bringsadeep understanding

of the industrials sector

andits associated

performance drivers.

Key findings and actions from the FY2026 Board performance review

Strategy

Strengthen Board and Executive

succession planning Board’s oversight of risk Strengthen stakeholder engagement

Actions

for FY2027

Continuing to evolve the

process for development

of corporate strategy

between the Executive

and Non-executive

Directors.

Review and strengthen key

capability areas within the

Board and Executive skills

matrix, to support future

succession requirements.

Strengthen Board oversight

of risk through scheduled

deep-dive reviews of key

principal risks, as well as

through enhanced risk

reporting to theBoard.

Develop and review amap

ofour stakeholder groups,

agree who is responsible for

engaging with each group, and

establish a consistent, effective

approach to that engagement.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Nomination Committee Report continued

Succession planning

Succession planning, both for the Board and senior

management, has been a priority for the Committee this year,

asdescribed on page 77.

The Committee continues to prioritise the appointment of

anewChair. Theappointment of an appropriate new Chair in

due course will be critical in preserving the culture andvalues

established bySir David McMurtry and John Deer, while guiding

the Board through the opportunities and challenges ahead.

During the year, the Executive Committee was strengthened

through a number of new appointments, as detailed on page77.

The Committee is also supporting the recruitment ofaGroup

Sales and Marketing Director.

Building on the diversity targets for senior management

onpage43, the Committee has increased its focus on

improvingthe diversity of the talent pool. With the help of the

Chief Executive Officer, the Committee has been reviewing

succession plans and leadership development initiatives for

theExecutive Committee and the senior management pipeline.

This has led to identifying development areas and individuals

who show potential as possible future leaders.

In reviewing the length of each Director’s tenure, the Committee

was mindful that several Directors have held their positions for

significant periods of time. This was taken into consideration

when looking at succession plans. Despite Sir David Grant

having served on the Board since April 2012, the Board

considers it in the Company’s best interests for him to continue

as Chair in the period of transition before a new Chair joining

theGroup in due course. In addition to his deep understanding

of the Company’s business and his expertise in engineering,

SirDavid will be able to serve as a mentor to the newly appointed

Directors. More details of the rationale for SirDavid’s appointment

as permanent Chair are set out on page74.

The review was conducted between January and May 2026

andwas facilitated by Gillian Karran-Cumberlege, Head

ofBoardAdvisory, and Alistair Stranack, Partner at Fidelio.

Thescope andobjectives of the review were agreed with

Fideliofollowingconsultation with the Chair and the Group

General Counsel & Company Secretary. Fidelio was asked

toconduct acomprehensive assessment of the effectiveness

oftheBoard and its Committees due to a period of significant

transition, driven primarily by internal leadership changes and

evolving market dynamics.

The review methodology included a detailed questionnaire

completed by each Director, followed by individual interviews

guided by the responses. Fidelio also conducted interviews

withthe Group General Counsel & Company Secretary,

Executive Committee members, Remuneration Committee

adviser and jointcorporate brokers, UBS and Peel Hunt.

Fidelioobserved theoperation of the Board and its Committees

by attending meetings, as well as a Board strategy session,

assilent observers. In addition, it reviewed Board and

Committee papers and key governance documentation.

TheGroup General Counsel & Company Secretary ensured

thatFidelio had full access to information and appropriate

support throughout the process. Fidelio presented its findings

and recommendations tothe Board in May 2026.

A board effectiveness action plan (FY2026 Action Plan) was

compiled and agreed by the Committee forrecommendation to

the Board based on the performance review’s recommendations.

A phased implementation plan was then developed, with progress

to be reported periodically to the Board and acomprehensive

review of delivery against the plan scheduled as part of the

FY2027 internal Board effectiveness review.

The external review concluded that the Board operates

effectively in discharging its responsibilities. In particular,

ithighlighted the Chair’s steady and effective leadership

duringaperiod of transition at shareholder, Board and Executive

Committee level. The review also identified a number of areas,

asset out in the table on page 81, where further enhancements

could be made to support continued Board effectiveness,

aswellas highlighting the importance of continued progress

inareas identified in previous reviews, notably succession

planning and employee engagement.

The Group General Counsel & Company Secretary is

responsible for tracking the actions and reporting back to the

Board periodically on progress made. Fidelio has reviewed

thedisclosures made in this Annual Report regarding the

Company’s Board performance reviewexercise.

Renishaw plc Annual Report 2026

CONTENTS

Board appointment process

The Board has an established process for identifying and

evaluating candidates for appointment to the Board and senior

management roles. Equally, Board and senior management

appointments are subject to the principles set outin the EDI

Policy, which formalises the Group’s commitment to diversity at

all levels (more information on this policy is set out on page 79).

The EDI principles are discussed with recruitment consultants

toensure they are accounted for when preparing a longlist of

candidates for discussion.

Appointing a Chief Financial Officer

Allen Roberts stepped down from his position as Group

Finance Director at the end of the 2025 AGM. Overseen by

the Committee, a search for a Chief Financial Officer

wasundertaken.

Having identified the desired skills and experience sought

from the new Chief Financial Officer, the Committee engaged

Russell Reynolds Associates as external search consultants.

Russell Reynolds Associates does not have any other

connection with the Company or the Directors, except where

ithas undertaken previous recruitment processes for other

Board positions. It is a signatory of the Voluntary Code of

Conduct for Executive Search Firms.

A shortlist of candidates was compiled and, following

acomprehensive interview and referencing process,

JohnShipsey’s appointment was recommended to the Board.

TheBoard approved John’s appointment as Chief Financial

Officer and Executive Director with effect from 13 April 2026.

John was given a tailored induction pack and bespoke

induction programme, as described on page 75.

These established processes are being used to support

futurerecruitment.

An external search consultancy was not used in connection

withthe appointment of Camille Deer. Also, our standard

procedure for Board appointments was adapted for her

appointment. The Nomination Committee carefully considered

her appointment and concluded that her judgement and

experience would add value to the Board and its discussions.

Information regarding the inductions for Camille and John is set

out on page 75.

All Non-executive Directors are appointed to the Board for an

initial three-year period subject to annual performance review

and re-election by shareholders at the AGM.

Sir David Grant

Chair of the Nomination Committee

22 September 2026

Engaging external recruitment consultants to assist

with the recruitment

Agreeing role specifications for the proposed

appointment

Consultants reviewing a longlist of candidates and

reducing to a shortlist

Reviewing a shortlist of diverse candidates provided

by the consultants

Inviting the preferred candidate to meet the

wholeBoard

Recommending the preferred candidate to

the Board

Preparing a bespoke induction programme based on

the individual’s role and experience

Interviewing the candidate or candidates who best fit

the role specification against objective criteria, with

due regard to the benefits of diversity on the Board

Appointing a subcommittee of the Board to oversee

the process

Evaluating the balance of skills, knowledge, experience

and diversity on the Board, including considering the

skills and experience required of the candidates

The Committee’s standard procedure for Board

appointments includes the following steps

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

The role of the Committee and how it works

The Audit Committee has an important role in providing assurance

over effective internal controls and financial reportingonbehalf

ofthe Board and shareholders. TheCommittee fulfils this role by

focusing on:

— external reporting, including the Annual Report;

— the risk management and internal control framework;

— the internal audit process; and

— the external audit process.

The Committee’s relationship with the Board is an important part

of how it fulfils its responsibilities, and the Board receives regular

and timely reports from the Committee Chair on these activities.

More details of the Committee’s work in these areas during the

year is set out in this report, and its terms of reference can be

found at www.renishaw.com/corporategovernance.

Committee membership and meetings

The Committee members are the Independent Non-executive

Directors. The Board considers that, as a whole, the Committee

has competencies appropriate to Renishaw’s sector and to

finance with which to fulfil its responsibilities, including relevant

professional qualifications and experience in senior finance

roles. The Independent Non-executive Directors’ biographies

can be found on page 61.

Committee member Attended

Juliette Stacey (Chair) 5/5

Catherine Glickman 5/5

Stephen Wilson 5/5

Professor Dame Karen Holford 4/5

Committee effectiveness

The effectiveness of the Audit Committee formed part of the

Board performance review described on pages 81 to 82.

Thisfound the Audit Committee to be thorough in its approach,

with robust discussions regarding Provision 29 and the rollout

ofMicrosoft Dynamics 365 in particular.

Introduction

In what was a strong and productive year for the business,

theAudit Committee continued to oversee the preparation

ofourfinancial statements and developments to our risk

andcontrol environment.

We welcomed the implementation of the updated global

financestrategy, including the consolidation of the global

financeorganisation. We were pleased to welcome our new

CFO,JohnShipsey, and anticipate further development of our

approach to strategy and risk, and of our finance organisation,

withhis input.

The Committee continued to review and challenge

management’s approach to financial reporting. In particular,

wefocused on employee benefits and tax provisioning, and

theimpact of implementing an enterprise resource planning

(ERP) system.

Building on last year’s work to oversee the development of

theGroup’s internal control framework, the Committee has

thisyearmonitored the shift from developing to embedding,

andweachieved key milestones in our programme towards

Provision29 reporting in FY2027.

The Committee monitored the evolution of the Internal Audit

strategy, as the scope of the Internal Audit function increased

tocover more of the Group’s risks, and as we seek to meet the

Global Internal Audit Standards.

We led a competitive external audit tender process this year,

which resulted in reappointing EY as Renishaw’s external auditor.

We continue to work closely with our lead audit engagement

partner and are satisfied with the effectiveness of the external

audit during the year.

We expect the continued progress made in risk and controls

toposition us well in FY2027, as we embed material control

assessments and reporting.

Juliette Stacey

Chair of the Audit Committee

22 September 2026

Audit Committee Report

Renishaw plc Annual Report 2026

Governance report

CONTENTS

Key activities

External reporting, including

the Annual Report

Risk management and

internal control Internal audit External audit

— Reviewing the Annual Report

and Interim Report before

publication.

— Discussing and challenging

management’s assessment

ofsignificant judgements,

estimates and financial

reporting topics.

— Assessing whether the Annual

Report is fair, balanced and

understandable.

— Reviewing the assumptions

and financial modelling for the

viability and going concern

assessments.

— Reviewing the Risk

Committee’s assessment of

principal and emerging risks.

— Reviewing the effectiveness

of internal controls.

— Reviewing management’s

work in preparing for the

reporting requirements of

Provision 29, including

approving the definition of

‘material controls’.

— Monitoring the introduction

of a new global ERP system,

Microsoft Dynamics 365.

— Monitoring and informing

the continued evolution of

the Internal Audit strategy.

— Agreeing the scope and

resourcing of Internal

Audit’s work.

— Evaluating Internal Audit’s

findings and monitoring

the responses from

management.

— Conducting a review

onthe effectiveness of

Internal Audit.

— Reviewing EY’s audit plan,

including its scope and

methodology, ahead of the

FY2026 audit.

— Discussing with EY its

progress and findings

throughout the audit.

— Conducting a review of the

effectiveness of EY and its

audit process.

— Reviewing any non-audit

services and the

corresponding policy.

— Conducting a competitive

external audit tender process.

The Committee also oversaw the implementation of the new finance strategy, approved in the previous financial year.

External reporting

Our Committee regularly reviews significant financial reporting matters and judgements made in preparing the financial statements.

We also carefully consider the full Annual Report. In all instances, our Committee provides its opinion to the Board and makes

recommendations for approval as appropriate, in line with its terms of reference.

Our work this year on these areas of external reporting is set out below.

Significant accounting judgements and estimates

Research and development projects

Description Our review and conclusions

The Group undertakes a significant amount of R&D work each

year, and two key decisions are needed to determine the

appropriate accounting treatment for related costs.

The first decision is a judgement as to whether expenditure

duringthe year on R&D activities meets the requirement for this

expenditureto be capitalised.

The second decision, for projects that have met the criteria for

capitalisation, is to estimate the discounted future cash flows of

theproject and compare this to its capitalised development costs.

Ifthe future cash flows are lower than the capitalised development

cost, animpairment should be recognised.

We reviewed the costs of the projects capitalised in the year, and

agreed that they had been capitalised at the appropriate point

intheir development.

We also reviewed the discounted future cash flows for these

projects and the ones that had previously been capitalised,

together with the key assumptions behind these forecasts.

Wethenreviewed the headroom between the capitalised costs

andthe discounted future cash flows.

We agreed with management’s assessment that an impairment

of£3.8m was needed in respect of an encoder project, following

areprioritisation of engineering resource to other encoder projects

and products in high demand.

Inventories

Description Our review and conclusions

The Group holds a significant amount of inventory (£181.7m

at30 June 2026). Estimates of future demand are used to

determine the provision needed for slow-moving and potentially

obsolete inventory, so that inventory is appropriately valued

atthelower ofactual cost and net realisable value.

At 30 June 2026, the inventory provision was £27.4m.

We reviewed the year-end provision in both absolute terms and

asaproportion of gross inventory, and also compared this to

previous periods.

Overall, we concluded that the provision was appropriate.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Audit Committee Report continued

Uncertain tax positions

Description Our review and conclusions

The Group is subject to a range of tax legislation that varies

byjurisdiction and can be complex. There can also be

uncertainties arising from tax-related case law.

There are instances where judgement needs to be applied

astowhether torecognise a tax liability.

We reviewed management’s assessment of tax risks and conclusions

on uncertain tax positions, and discussed management’s tax

governance framework.

We also reviewed where external advisers were used to ensure that

management had sought appropriate advice.

We agreed with management’s assessment that provisions for tax

liabilities of £6.6m were required (FY2025: £9.2m), with related

interest of £5.3m (FY2025: £4.9m).

Defined benefit pension schemes

Description Our review and conclusions

To determine the value of the defined benefit (DB) pension

schemes’ liabilities, management needs to estimate the present

value of the future obligations. Assumptions of discount rates,

inflation rates and mortality rates are used in this estimate

andaredetermined by management in consultation with

independent actuaries.

Management also needs to determine the appropriate

accounting treatment for past service costs.

We reviewed the assumptions of discount rates, inflation rates and

mortality rates, including the movement in these since FY2025.

Wealso confirmed with management that these assumptions had

been determined in consultation with independent actuaries.

We reviewed management’s accounting treatment for matters that

may affect past service costs, including discussing professional

advice obtained by management.

We also reviewed the findings of a detailed review of all schemes

across our Group, given the complexity of this area, and concluded

that these are being appropriately accounted for at 30 June 2026.

Adjusting items in Alternative Performance Measures

Description Our review and conclusions

The Group’s Alternative Performance Measures (APM) policy

allows for specific items to be excluded from APMs, and also

forother ‘infrequently occurring events’ that can significantly

affect profit and earnings. This year, management needed to

apply significant judgement in determining which items should

be ‘adjusted for’ inthe APMs.

We reviewed management’s treatment of significant events during

the year, including whether they were ‘infrequently occurring’

andwhether they significantly affect profit and earnings. We also

reviewed whether the adjusting items met the principles of the

Group’s APM policy.

We agreed with management’s assessment. The ‘adjusting items’

areshown on page 180.

We agreed with management’s assessment that key estimates and judgements relating to cash flow hedges, goodwill and the

recognition of redundancy costs reported in FY2025 no longer represent key judgements or estimates in FY2026. This is for three

reasons, respectively:

— our hedging policy largely protects against ineffectiveness and we have not experienced hedge ineffectiveness for several years;

— goodwill is no longer considered to carry a significant risk of material adjustment to the carrying value in the financial year;

— our redundancy costs were fully recognised in FY2026.

Renishaw plc Annual Report 2026

CONTENTS

Going concern and viability

Our Committee reviewed the financial modelling undertaken

bymanagement and used by the Board in making its going

concern and viability assessments. This review included

assessing the basis of the severe-but-plausible downside

scenarios and how they addressed the principal risks, and

thekey assumptions and main mitigating actions included

ineach scenario. We confirmed with management that cash

balances were positive in each month in the assessment period.

We also reviewed the reverse stress tests that management

hadpreparedfor the period to 31 December 2027 and

31 December 2029 for going concern and viability respectively,

noting that the sustained falls in revenue (and therefore profit

andoperating cash flows) in the reverse stress tests are so low

as to be highlyunlikely.

We also considered the lack of significant external borrowing,

the absence of covenants and the current trading performance

of the Group. Overall, we concluded that the use of the going

concern basis for preparing the financial statements is

appropriate, and supported the viability assessment that the

Board reviewed and authorised.

Accounting policies and disclosures

Our Committee reviewed significant accounting policies

andchallenged management’s approach to employee

benefitsand tax provisioning. Following the restatement

requiredin the previous year to recognise a defined benefit

pension scheme, wehave reviewed management’s updated

assessment on post-employment benefits in every country.

Weare satisfied thatthe FY2026 financial statements reflect

these benefits appropriately.

We also reviewed management’s approach to presentation and

disclosures, including the appropriateness ofthe APMs.

Climate risk and Climate-related Financial Disclosures

We reviewed this year’s Climate-related Financial Disclosures

reporting. This included receiving an update from the ESG

Steering Committee on its review process and reviewing

management’s work in assessing the impact of climate

changeon the financialstatements.

Fair, balanced and understandable assessment

The Audit Committee reviewed whether the FY2026

AnnualReport, taken as a whole, was fair, balanced and

understandableand also whether it provided the information

necessary for shareholders to assess the Company’s position

and performance, business model and strategy. In making its

assessment, the Committee considered:

— that the fair, balanced and understandable requirements

werea key part of the Annual Report project team’s focus;

— the involvement of senior management and the Board in

preparing and reviewing the Annual Report, and explicitly

asking whether they felt that the Annual Report was fair,

balanced and understandable;

— the use of corporate reporting specialists to support the

drafting and review of the Strategic Report and Corporate

Governance Report; and

— the engagement of our remuneration and legal advisers,

andcorporate reporting specialists, in reviewing the

AnnualReport.

Following its review, the Audit Committee confirmed to the

Boardthat the FY2026 Annual Report was fair, balanced

andunderstandable, and the Board’s statement is set out

onpage125.

Risk and internal controls

The Board has overall responsibility for the Group’s approach

torisk management and internal control. The Risk Committee

has operational responsibility for risk management, and the

Board has delegated responsibility to the Audit Committee

forthe oversight of this work and the effectiveness of

internalcontrols.

Following the publication of the UK Corporate Governance Code

2024 and the development of our risk and control framework

inrecent years, preparations are well under way to ensure

compliance with the requirements of Provision 29 for the

year ending 30 June 2027. During the year, the Committee:

— approved management’s definition of a material control;

— discussed and approved a preliminary list of material

controls;

— reviewed the outputs of testing the design effectiveness for

asample of material controls;

— approved the methodology for determining material control

effectiveness;

— approved the assurance strategy across each principal risk,

with highest levels of assurance agreed for cyber security,

ITtransformation, compliance with laws and regulations,

andfinancial reporting.

We also reviewed updates to key compliance policies, including

an updated financial controls manual, a new tax governance

framework and a draft anti-fraud policy, and reviewed

management’s progress with the implementation of the new

ERPsystem.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Audit Committee Report continued

External audit

Appointment, reappointment and tendering

As a ‘public interest entity’, we are required to put our

externalaudit contract out to tender at least every 10 years.

Having reviewed external requirements and guidance at the

May2025 Committee meeting, we approved a project plan

attheJuly 2025 meeting. Management supported the

Committee’s work here, and the tender process is set outbelow.

— A desktop review of potential firms was conducted in

September and October 2025, which included a review

ofthelatest FRC Audit Quality Reports.

— From this review, four firms received a request for proposal

(RFP) in November 2025, including the incumbent and

one‘challenger’ firm.

— The RFP outlined the selection criteria, audit scope,

keymilestones in the process, and more information

suchasmeetings and access to a secure data room.

— Meetings were held between the participating firms and

theAudit Committee Chair, and with members of the

FinanceLeadership Team,in November and December

2025, and each firm alsotouredour site in Miskin, Wales.

— Management received proposals in early January 2026

andprepared a comparison of these, which was sent to

theCommitteealongside the proposals themselves.

— Fee proposals, and management’s scoring on the

agreedassessment criteria, were provided separately so

thatthe Committee could review the proposals in isolation.

The assessment criteria covered audit approach, audit

service, capability and competence, and behaviour and

deliverables. Fees were considered from the perspective

ofwhether they supported the proposed auditapproach

andscope, and whether they were transparent.

— Following review of the proposals, a shortlist of three firms

was invited to in-person interviews with the selection panel

ofthree Committee members. These interviews took place in

London in February 2026 and were supported by the Interim

Group Finance Director and Group Financial Controller.

— The selection panel carefully considered the proposals

andthe in-person interviews, and we kept theother

Committee member informed of progress. Afterrobust

discussions, we agreed recommendations fortheBoard.

— At the March 2026 Board meeting, the Committee

recommended two of the shortlisted firms, and the

Boardagreed to reappoint EY for the FY2027 audit.

EY’sproven audit quality was a key factor in this decision.

For internal controls over financial reporting (ICFR), the Committee

oversees the effectiveness of the approach through areview of

thenow twice-yearly ICFR self-assessments, and anew testing

programme carried out by the Internal Controlsteam.

For non-financial controls, we oversee the effectiveness of

theapproach through principal risk owners providing self-

assessments to the Committee to say that they are not aware

ofany significant deficiencies in the key controls for their

respective risks. This year we also reviewed the pilot testing

forasample of material controls under the new definition

andmethodology. Following this review, we challenged

management to improve our Know Your Customer and IT

programme controls.

A consolidated review of design and operational effectiveness

ofall material controls will be the basis of the Committee’s

oversight in FY2027 and beyond. This revised approach has

been enabled by the progress made this year in embedding the

risk and control framework, and by ensuring that management

and the Risk Committee are focused on material controls and

allworking to a common definition and testing approach.

Whistleblowing

The Committee oversees the Group’s whistleblowing process.

This is set out in more detail on page 67, with the Committee

reviewing significant whistleblowing incidents and their outcomes.

Internal audit

Internal Audit work is performed in-house, led by the Group

Internal Audit Manager. The Internal Audit strategy was updated

last year, which included a wider remit across business risks.

Internal Audit’s work was integrated into the Risk Committee

during the year, with the work plan partly informed by that

committee. The Audit Committee agreed the team’s work plan

atthe start of the financial year, checking progress against

oragreeing changes to this plan during Committee meetings.

This year, the Internal Audit team reviewed our product

innovationprincipal risk, completed its review of production

planning processes and reviewed certain legal compliance

areas. Risk owners have considered the outcomes of

thesereviews and integrated them into work streams

whereappropriate.

The Committee has continued to monitor progress against the

updated Global Internal Audit Standards, and acknowledge

thatmore work is needed to reach these Standards.

At the end of each financial year, the Committee assesses

theeffectiveness of the Internal Audit function. In this review,

theCommittee considers whether the quality, experience and

expertise of the function is appropriate for the business. It also

considers the actions management has taken to implement

Internal Audit’s recommendations. This year’s review concluded

that while there was no material ineffectiveness of the function in

the context of the Group’s risk management and internal control

framework as a whole, there were areas for improvement and the

Committee will oversee progress on these matters in FY2027.

Renishaw plc Annual Report 2026

CONTENTS

After considering these matters, our Committee was satisfied

with the effectiveness of the external audit process, and

recommended to the Board that EY be reappointed at the

Company’s AGM on 25 November 2026.

Juliette Stacey

Chair of the Audit Committee

22 September 2026

Independence and objectivity

Both the Group and EY act to ensure that EY is independent

andobjective. The Group has a non-audit services policy,

whichwas reviewed during the year to confirm its continued

appropriateness. Some non-audit work is permitted by the

policyin line with the FRC’s Guidance on Audit Committees and

the requirements of the FRC’s Revised Ethical Standard 2019.

EY requires non-audit work to be approved by the Group’s

leadaudit partner before the work starts; approval is not

grantedif the lead audit partner concludes there is a risk to the

independence and objectivity of the audit. Separation of EY’s

specialist teams also ensures that members of the audit team

donot perform non-audit work for the Group.

This year, EY’s fees for non-audit work were £46,000. This was

for four engagements: Wotton Travel Limited’s annual ABTA

reporting, a tax assurance engagement for Renishaw Metrology

Systems Limited as required by local law, a limited statutory

examination for Renishaw AG, and review procedures for VAT

s56a certification for Renishaw UK Sales Limited.

Quality and effectiveness

The external auditor is invited to attend our Audit Committee

meetings and report its plan for the full-year audit and interim

results review. As the Committee Chair, I meet with the lead

auditpartner on a regular basis. The Committee meets with

thelead audit partner at least annually, without management

present, to allow both Committee members and the external

auditor to raise any issues directly.

The FRC’s Audit Committees and the External Audit: Minimum

Standard (Standard) sets out how the Committee should assess

the effectiveness of the external audit, in the context of the

Group’s circumstances. The Committee’s review of the

effectiveness of the FY2026 external audit reflects the points

thata Committee should undertake in line with the Standard,

andconsidered:

— the quality and scope of EY’s audit plan, and an evaluation

ofdelivery and performance against the plan;

— EY’s identified risks to audit quality and how these had

beenaddressed;

— the skills, mindset, efficiency and performance of the

auditteam;

— the communication between the Group and EY;

— EY’s understanding of the Group’s business and industry

sector; and

— the FRC’s Annual Review of Audit Quality, published in

July2026.

The Committee also confirms that it met all the relevant

requirements of the Standard in FY2026.

Renishaw plc Annual Report 2026

GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Our current and previous Remuneration Policies reflected

thefact that the founders of the business – John Deer and

thelate Sir David McMurtry – were Executive Directors prior

tobecoming Non-executive Directors in 2020 and 2024

respectively, with direct controlling shareholding of the business.

The context for our current Executive Directors is different to

ourhistoric founder appointments: we wanted to ensure that our

reward design encouraged leaders to take a long-term mindset

to investing in research and development, bringing profitable

new technologies to the market.

Finally, we reviewed the shareholding in Renishaw of our CEO,

Will Lee. The current incentive approach – an annual bonus

coupled with some mandatory share deferral – has enabled Will

to align to the shareholder experience through Renishaw share

ownership, but the level held was below our stated guideline

level at the end of FY2025 (81% of salary vs aguideline of

200%). For an executive who has been in role foreight years,

wewould like a structure that generates a stronger

alignmentthrough shareholding, subject toassociated

performance delivery.

Proposed changes

These findings meant that we believed that changes

wererequired to support us in achieving our stated goals.

Wedeveloped a number of alternative approaches andevolved

a straw-model for amendments to our Policy, mostimportantly

tointroduce a Long-Term Incentive Plan for oursenior leaders.

This was something already allowable under ourPolicy for new

joiners, but not permissible for incumbent Executive Directors.

We discussed these proposals across our shareholder base;

thisreport shows the range of feedback we received and how

we have used it to evolve and shape our final proposed Policy.

Iwould like to thank all shareholders and proxy voting agencies

who contributed to ourengagement process and who shared

their views and perspectives on proposed changes.

In summary, our key proposed changes are:

— Introduction of a Long-Term Incentive Plan (LTIP) for senior

leaders in the business. This will take the form of awards

ofPerformance Shares with vesting based on Company

performance against defined targets over a three-year

period, with a holding period post-vesting for Executive

Directors of two years. Maximum awards permissible would

be 225% of salary. We do not intend to usethis level for

awards in FY2027, maintaining headroom within our Policy

forthe future, as needed. Our intention is to cap awards

forFY2027at 200% and 175% of salary for the CEO and

CFOrespectively.

— Reduction in annual bonus opportunity permissible under

thePolicy. This is currently 225% of salary and will reduce to

175%. Again, we do not intend to use this full opportunity for

FY2027, with maximum awards for each Executive of 150%

ofsalary. (Thisrepresents a reduction from 200% of salary

forWill compared to FY2026, alongside the introduction

ofthe LTIP).

I am pleased to present the report of the Remuneration

Committee for the year ended 30 June 2026.

Introduction and context

Our Directors’ Remuneration Policy was last approved by

shareholders in November 2023 and is scheduled for renewal

atthe forthcoming AGM. As a Committee, we have spent

significant time over the past year considering the current policy

design and evaluating how effectively it aligns executives with

driving business performance and sharing in success through

their reward. Our conclusion is that changes to the Policy are

required to drive sustained growth, to encourage long-term

decision-making in pursuit of shareholder value creation,

andtoensure our Policy is capable of securing and retaining

theright calibre of talent for future success.

Full details of our activities to consider changes to our current

Remuneration Policy are summarised in this letter and are

explained in further detail on pages 94 to 98, followed by

theproposed new Policy, whichwe will be asking shareholders

to support at the AGM.

Our Remuneration Policy review

We identified three goals to underpin our Policy review process:

1 Strengthen the linkage of reward to our strategy.

Renishawisa business founded on innovation, and our

ability to accelerate innovation to drive future growth is key

tofuture success.

2 Ensure market competitiveness. We wanted to assess

thecompetitiveness of our existing arrangements and

understand any quantum and/or structural variations

toprevailing market practice.

3 Drive alignment of executives with the shareholder

experience. We believe that executives should be materially

aligned to the business they lead and wanted to understand

the progress of our current approach in developing and

maintaining appropriate levels of shareholding.

Our findings and reference points

Our existing Policy already acknowledges differences

comparedto prevailing market norms, in particular the

absenceof a long-term incentive plan within our reward

structure. Market insight – provided by our remuneration

consultants – confirmed that a structure solely reliant on an

annual bonus was highly unusual, but also that the overall

resultant target levels of reward were materially below market

practice against each of the different comparator groups we

considered. Full details of the market insight we reviewed are

provided later in this report.

These findings were also borne out by our own experience

ofbringing external talent into the business.

Directors’ Remuneration Report

Committee Chair’s statement

Renishaw plc Annual Report 2026

CONTENTS

We are pleased that this superior profit delivery was also

accompanied by robust performance against the strategic

metrics we set (which are disclosed in detail later within the

report). These covered key areas such as successful delivery

ofproduct launches during the year, operational excellence

delivery and arange of ESG-linked metrics. Our final

assessment for strategic metrics was an award of 15.5% out

ofthe 20%, resulting in total awards of 95.5% of maximum,

thehighest seen for a number ofyears.

Will Lee was the only Executive Director who participated in

theAnnual Bonus during FY2026. Senior Leadership Team

members are aligned in the same way toCompany performance

and experienced similar outcomes (asa percentage of maximum

opportunity available).

We were satisfied that the formulaic outcomes under our annual

incentive were a fair reflection of actual business performance

and no discretion was used by the Committee to modify them.

Additionally, we have comprehensive malus and clawback

policies in place, as expected under the UK Corporate

Governance Code. These were not used over the reporting

period and would be subject to disclosure in the event they

wereused in the future.

As required under our existing Policy, 62.5% of the total award

will be deferred into shares for three years for Will, with half

subject to enhanced recovery provisions. This will be considered,

as in prior years, through a subjective assessment by the

Committee, considering business and personal performance over

the three-year deferral period. We will make this determination

looking to ensure that awards made following theend of FY2026

are a fair reflection of underlying performance of the business

over the next three years.

Wider workforce reward and bonus awards

We reviewed the latest gender pay gap disclosure covering

ourUK employees and noted a further reduction in our pay

gapyear on year. Our mean pay gap currently stands at 16.1%

having reduced from 25.6% in 2018. We see growing numbers

ofwomen in our upper pay quartiles, and while there is more

progress to be made in Renishaw (and across our industry

sector more broadly), these are positive steps in the right

direction. Ensuring higher participation levels of women in

middleand senior levels of the business is a key driver of

furtherreductions in our pay gap.

The business continues to invest in reward and seeks to drive

fairness in the way people are remunerated. During the year

theCommittee received updates on reward, highlighting current

competitiveness of certain employee groups, and reviewing

proposals for future changes.

The Committee reviewed proposals for investment in base pay

with reviews effective for most employees from January 2026.

The overall average investment was 3.8%, ahead of the increase

made to our CEO of 3%.

Illustrations of the expected impact on target levels of

remuneration are shown on the following pages. They increase

our target reward position from below lower quartile against

identified comparator groups to around market median,

conditional on delivery against the performance targets

wehaveset.

We have discussed with shareholders the absolute change

inthelevel of target reward for the CEO under the new Policy,

and the expected associated cash flow impact as a recipient

under the Policy. We have looked to adopt a path to support

change that isfair to the incumbent, combining a reduction in

annual bonus quantum with reduction (but ongoing mandating)

of bonusdeferral into deferred shares, all alongside the

introduction of anLTIP. Our approach rebalances the overall

reward package towards sustained long-term delivery without

anexpected cash flow disadvantage to incumbents.

Our assessment is that the revised target remuneration levels

areappropriate, and note that any value realised from LTIP

awards is only realisable five years from the point of grant.

Weconsidered whether any additional actions were required

through a transition, such as interim additional awards of shares

or a staged approach to quantum change. Both approaches

were discounted by the Committee having heard feedback from

shareholders, and a belief that a five-year horizon was already

asubstantial timeframe for changes to be realised.

The new Policy consciously includes additional potential

headroom within the incentive opportunity, which will not be

usedduring FY2027. This allows us to further evolve quantum

ifneeded to ensure ongoing market competitiveness over the

lifeof the next Policy or to reflect significant increases in

business scale and complexity.

We have also taken the opportunity to strengthen our

shareholding guideline through the new Policy. It will remain

at200% of salary for each Executive Director for FY2027,

andwill be increased further to align with LTIP award levels

if,atany stage over the life of the Policy, an award level of

greaterthan 200% (up to the Policy limit of 225%) was

awardedto an Executive.

We will also use the introduction of the LTIP to simplify some

other aspects of our Policy; full descriptions of these changes

are provided on page 94. Many changes reflect the previous

absence of an LTIP, and were design variations to prevailing

market practice that we no longer feel are needed, given the

rebalancing of overall reward design.

Reward outcomes for FY2026 for Executive

Directors and Senior Leadership Team members

FY2026 has been a strong year for the business. We experienced

high demand from semiconductor and electronics manufacturing,

and aerospace and defence, resultingin revenue growth over

FY2025 of 14.4% and Adjusted profit before tax growth of 32.1%.

The annual incentive was weighted 80% towards Adjusted PBT

and 20% against defined strategic metrics. Our final Adjusted

PBT outcome of £168.0m exceeded the maximum profit

targeton the scale set at the start of the year, resulting in

maximum awards under this metric (80% out of a possible 80%).

Renishaw plc Annual Report 2026

GOVERNANCE REPORTGOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors’ Remuneration Report continued

Conclusion

The proposed Remuneration Policy has been considered in

depthby theCommittee and through shareholder discussions.

We believe it strengthens the alignment of our executive

leadership to our strategy and encourages them to make

long-term decisions in the interest of shareholders, accelerating

innovation into future returns. We have heard clear support for

the proposed changes to our Policy. I would like to thank all

shareholders for their constructive input to our process and

forenabling us to evolve and finalise our Policy proposals,

whichIhope you will support at our forthcoming AGM.

Catherine Glickman

Chair of the Remuneration Committee

22 September 2026

In line with our historic practice, the business sets aside an

agreed share of our profits to award to eligible employees

through our profit share arrangement, which was reviewed and

discussed with the Committee. Given our superior profit delivery

in FY2026 overall awards are materially higher than in FY2025,

with a minimum award for UK colleagues of £1,000 (prorated),

exceeding the minimum applied in the prior year of £900.

Wemade the decision to increase the formulaic profit share

calculation to recognise the contribution of staff to the impressive

performance across the global business. Individual awards

under the profit share are determined based on the seniority

ofindividuals and their respective performance during FY2026.

Proposed implementation of Policy for

FY2027and beyond

Current salaries as at end of FY2026 for Will Lee and

JohnShipsey were £787,470 and £525,000, respectively.

Thesewill next be reviewed in December 2026, with any

changes effective from 1 January 2027. Changes will be

considered with reference to the wider level of pay investment

across our UK employees.

We have used our Policy review to simplify the implementation

ofthe Annual Bonus, and reflect changes informed by

feedbackwe received through shareholder consultation.

Keychanges include:

— adjusted profit delivery will continue to be our primary

performance metric (60% of overall assessment);

— increased weighting linked to the cash conversion metric

(from 2% to20%);

— use of fewer strategic metrics, each with a larger

minimumweighting than in prior years, covering ESG

andproduct launches;

— adjustments to deferral levels to drive consistency and

interaction with our shareholding guideline for Executive

Directors; and

— reduction in opportunity level for our CEO (from 200%

ofsalary to 150%).

Subject to shareholder approval at the November AGM,

wewillmake the first awards of Performance Shares under

ourLTIP linked to the three-year performance period beginning

1 July 2026 and ending 30 June 2029 (FY2027–FY2029

inclusive). Targets have been set covering Adjusted earnings

pershare (EPS), Return on invested capital (ROIC) and Strategic

metrics. Details of the choice of performance metrics, associated

weightings and the targets are included in the Annual Report

onRemuneration.

We are also seeking approval at this year’s AGM for a new

shareplan to enable the granting of LTIP awards andfuture

deferred bonus share awards to senior leaders in the business.

This reflects the new Policy and typical practice. A summary

oftheprincipal terms ofthe new rules will be included in the

Notice of Annual General Meeting.

Committee Chair’s statement continued

Renishaw plc Annual Report 2026

CONTENTS

Remuneration at a glance FY2026

Reward outcomes for FY2026 – alignment of pay and performance

FY2026 annual bonus

Details show annual bonus outcomes for Will Lee, Chief Executive Officer. He was the only Executive Director participating in the

Annual Bonus duringFY2026.

— Overall award 95.5% of maximum

— Overall Bonus outcome = £1,482k

— In line with current Policy, 62.5% of award deferred into shares for three years, with half subject to enhanced recovery provisions.

Financial

80%

Strategic

20%

Adjusted PBT

FY2026

Weighting 80%

Threshold

(10% of max)

Point A

(20% of max)

Point B

(60% of max)

Maximum

(100% of max)

Actual

(100% of max)

£115m £127m £145m £160m £168m

Threshold Target Maximum

ESG – Responsible business (Weighting 6%)

Actual

(77.5% of max)

Product innovation (Weighting 8%)

Operational excellence (Weighting 6%)

Outcomes vs Policy Scenarios (CEO) £k

Maximum

776 84 1,552 2,412

Single Figure FY2026

776 1,482 84 2,342

Target

776 776 84 1,636

Fixed

776 84 860

Salary Annual bonusBeneﬁts and pension

Shareholding progression (CEO)

Target = 200%

FY2019

22%

26%

FY2020

32%

FY2021

41%

FY2022

43%

FY2023

99%

FY2024

81%

FY2025

180%

FY2026

Single Figure history

Single Figure – CEO

FY2026 FY2025

Base Salary £776k £752k

Pension and benefits £84k £105k

Annual Bonus £1,482k £619k

Total £2,342k £1,478k

Reduction in benefit values reflect alignment of pension contribution

to prevailing rate of UK workforce effective 1 January2025.

Renishaw plc Annual Report 2026

GOVERNANCE REPORTGOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Remuneration at a glance FY2026 continued

Directors’ Remuneration Report continued

Proposed remuneration design for FY2027

Policy implementation for FY2027 – Executive Directors

Details show planned implementation of our Remuneration Policy during FY2027. Introduction of Long-Term Incentive Plan awards

are subject to approval by shareholders of revised Remuneration Policy at 2026 AGM.

Fixed remuneration

CEO CFO

Salary

CEO salary as at 1 July 2026 = £787,470 CFO salary as at 1 July 2026 = £525,000

(Salaries will next be reviewed effective 1 January 2027.)

Pension

9% of salary, aligned to the prevailing rate of the UK workforce.

Benefits

Range of benefits including car allowance, private health care, permanent health insurance and life assurance.

Nochanges to core benefits provided from FY2026.

Variable remuneration

CEO CFO

Annual bonus

Maximum 150% of salary

Assessment:

Financial metrics (80% weighting) and Strategic (20% weighting).

Delivery:

Mandatory deferral of part of awards into shares for three years: 50% deferral (reducing to 33% when

shareholding requirement is met at point of award).

Performance

SharePlan

(PSP)awards

Award of 200% of salary Award of 175% of salary

Assessment:

Financial metrics (80% weighting) and Strategic metrics (20%).

Delivery:

Vesting after three years, with shares subject to further two-year holding period.

Linkage of performance measures to strategy

Strategic theme Performance measure

Annual

bonus PSP

Product innovation

Launch and commercialise new products

tostrengthen our market position.

Product launch delivery

Driving innovation

Operational excellence

Well-run business with efficient processes. ‘One Renishaw’

ESG

Responsible business that takes care

ofour people and planet in line with

ourvalues.

e intensity reduction

Employee engagement

Growth

Organic growth generates the profits forus

to reinvest in our future.

Adjusted operating profit growth

Cash conversion

Return on invested capital (ROIC)

Adjusted earnings per share growth

Renishaw plc Annual Report 2026

CONTENTS

Remuneration Policy

Approaching our Policy review

The Committee acknowledges our existing Remuneration Policy differs in approach to prevailing market practice. The current policy

reflects the history of Renishaw as a business led by its founders who were Executive Directors, became Non-executive Directors

and were direct controlling shareholders. This changed with the sad passing of Sir David McMurtry in December 2024 and the

establishment of Deltam Holdings Limited, a joint family holding company, in November 2025.

Whilst the existing Policy contains provisions to make changes for new appointments, we believe that it is important to consider the

design and competitiveness of reward for all participants, including incumbent Executive Directors.

We agreed a set of guiding principles to support our discussions and considerations:

Guiding principles

Design Evaluation Implementation

— Align and motivate leaders towards

collective goals and enable them

toshare in success generated.

— Support investment in innovation for

the future to drive growth.

— Encourage a long-term performance

mindset, built around creation of

shareholder value.

— Understand market competitiveness of

existingreward structure and current variations

tomarket practice.

— Have honest and open conversations around

performance metrics, including our ability to set

long-term targets with confidence.

— Engage and listen to our shareholders carefully,

understand their views and preferences, and

beguided by what we ultimately believe is right

for Renishaw.

— Ensure future Policy motivates incumbents but

could also attract the right calibre of talent when

needed (whether from within or externally).

— Look for simplicity: to ensure

understanding and build trust

ofleaders.

— Ensure that future design motivates

leaders both annually and over the

longer term.

— Manage any change for incumbent

employees openly and sensitively.

Finally, we determined that any change should fulfil the following goals:

Appropriate link with strategy Ensuring market competitiveness Alignment with shareholders

Seek opportunities to strengthen the

alignment of reward to our stated strategy,

rewarding sustained businessdelivery.

Ensure our reward is appropriately placed

against the market.

Continued belief that senior leaders

shouldhave significant alignment to the

shareholder experience through material

shareholding in thebusiness.

Context for goal

Existing use of Annual Bonus (only) has

scope to incentivise short-term delivery

and not prioritise investment in pursuit of

future sustained growth.

Context for goal

Absence of long-term incentive plan for

incumbent Executive Directors (but with

existing scope within current Policy for

inclusion for a newhire).

Current target reward package for CEO

below lowerquartile against identified

comparatorgroups.

Context for goal

Actual shareholding level for existing CEO

isbelow the stated guideline of 200%.

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Remuneration Policy continued

Defining comparator groups

We considered two comparator groups to understand the competitiveness of current Renishaw Executive Director reward against

the market, both in terms of expected quantum and the underlying mix of elements of the reward package.

Existing CEO remuneration vs comparators

Industrial peers group FTSE 250 subset

Group

characteristics

An original group reviewed contained 19 UK listed

industrialcompanies, including some both far larger

andsmaller than Renishaw.

We evolved this to look at a subset of 11 companies between

one third and three times the scale of Renishaw (based on

average market capitalisation overthe prior 12months).

Renishaw was placed just below the median of this group

based on market capitalisation. The companies were:

— Renishaw, Chemring, Rotork, Vesuvius,

OxfordInstruments, Spirax, Bodycote, Weir Group,

IMI,Qinetiq,Spectris and Babcock.

Contained FTSE 250 companies with 12-month

average market capitalisation between £1.5bn

and£3bn, excluding financial services companies.

Renishaw’s 12-month market capitalisation

average at point of analysis was £2.2bn,

justabovethe median ofthe group (£2.1bn).

Renishaw CEO

(target reward)

Target reward level of £1,645,000 (based on annual salary of £787,000, pension contribution level of 9% and

target annual bonus of 100% of salary, with no LTIP).

Resulting market

insight (target

reward)

Target level of

reward (£’000)

Lower quartile 1,792

Median 2,273

Upper quartile 2,552

Target reward for Renishaw CEO (£1,645,000) was

thelowestof any company in the comparator group,

around£150,000 below the lower quartile level.

Target level of

reward (£’000)

Lower quartile 1,751

Median 2,368

Upper quartile 3,001

Target reward for Renishaw CEO was also below

thelower quartile of this group.

Structural

observations

(Renishaw vs

comparator group)

— CEO base salary (£787,470) placed between median

(£771,000) andupper quartile (£811,000).

— Existing target annual bonus level around upper

quartileagainst group (median = 87.5% of salary,

upperquartile = 98%).

— Renishaw was the only company without a long-term

incentive in place, resulting in total reward positioned

below lower quartile.

— Base salary just below market median of

£797,000.

— Target bonus: median = 75% of salary,

upperquartile= 100% of salary.

— Target long-term incentive for identified group:

median= 100% of salary, upper quartile =

145%ofsalary.

Overall insight Target reward levels for CEO were below desired positioning, and with a heavy skew towards annual performance

only, in contrast to prevailing market practice.

1 We took a long-term approach to considering the market capitalisation of Renishaw against comparators, using 12-month averages through to December 2025.

Itis noted that the current market capitalisation of Renishaw is well in excess of these levels, and was £3.7bn at 30 June 2026.

2 This was defined as the value of annual salary and pension, plus the expected or target value of annual bonus awards and long-term incentives (where used).

Insight for CFO Role

Similar conclusions were found when reviewing reward arrangements of the previous CFO against market data, and were used to

inform the design and implementation of the package for our current CFO (John Shipsey) when he joined the business in April 2026.

Full details of his reward arrangements are covered within the Annual Report on Remuneration. We noted that, of the shortlisted

external candidates for the CFO position, all had been participants in long-term incentive plans in previous companies, and this

wasan expected constituent of a potential reward package.

Our conclusions and goals of change

Our conclusion was that changes were required to enable us to address our desired goals. While we had some flexibility under

ourcurrent Policy to support CFO recruitment (or that of another Executive Director), we were concerned around the overall target

remuneration levels for our CEO vs market comparators, and the potential for subsequent package variation across our executive

team. Our vision was for something that united people towards common business goals. We believe that we should make changes

to the Policy to recognise the change in the Executive Director roles, and that of the Executive Leadership team more broadly.

Thenew Policy will reinforce the vision and values of the founders, with the focus on long-term innovation of products that are

valuedby our customers, responsible investment and cash management, delivering organic growth and sustained profitability.

Renishaw plc Annual Report 2026

CONTENTS

Shareholder engagement

We discussed our proposed changes with family members, including the Directors of Deltam Holdings Limited, and

alsoapproached our top 13 institutional shareholders. In total, this covered around 75% of our issued share capital.

Additionally,weengaged with shareholder proxy agencies to discuss our proposals.

To support discussions, we shared an outline of proposed changes for discussion and input including:

— introduction of a performance-based LTIP, delivered in shares with vesting subject to performance against targets;

— rebalancing of CEO reward (lowering Annual Bonus opportunity alongside introduction of an LTIP);

— standardised deferral of 50% of Annual Bonus award earned for Executive Directors into Company shares

(reducingto33%where shareholding guidelines were met or exceeded).

What we heard through consultation

Themes through

consultation

Key discussion topics The way we have reflected shareholder discussions within our

proposedPolicy

LTIP introduction

— Change for incumbent CEO.

— Transition to combination of

Annual Bonus and LTIP.

Reduction in Annual Bonus opportunity for CEO for FY2027 to 150% of

salary (from 200% in FY2026), with a reduced level of deferral into shares

(from 62.5% to50%, or 33% where shareholding requirement met).

This is designed to preserve cash flow to Will through the change,

subjectto performance delivery.

Overall target levels of reward increase to around market median levels.

First PSP performance period is FY2027–FY2029 inclusive, with shares

vesting subject to further two-year holding period.

Strategic assessment

within Annual Bonus

— Use of strategic metrics

(including ESG).

— Removal of formal underpin

requiring threshold profit

attainment before any awards

made under strategic

elements.

Some investors sought confirmation that ESG metrics would remain

withinincentive assessment. We will include this within Annual Bonus

assessment for FY2027.

Another theme was a desire to have fewer metrics within the overall

design, sothat key deliverables were highlighted rather than a very

detailed scorecard. We have reduced the number of metrics within the

Annual Bonus for FY2027, witha minimum weighting of 5% of the total

opportunity for any individual metric.

We will continue to retain an overriding ability for the Committee to adjust

award outcomes and override formulaic outcomes.

Long-term assessment

metrics

— Choice of metrics.

— Approach to strategic

assessment.

— Absence of Total Shareholder

Return (TSR) as a proposed

performance metric.

Shareholders were supportive of the range of metrics and the balance

this created. We heard endorsement for the respective combination of

EPS and ROIC performance and agreed an EPS weighting of 50% and

afinal ROIC weighting of 30% as part of our implementation for FY2027

(an increase from the 25% weighting weinitially discussed).

Several shareholders highlighted a desire for inclusion of a TSR metric,

which would align with typical market practice. We have discussed this

point in depth as a Committee and have decided not to include this within

the proposed structure. We want metrics where delivery is based on

achievement within the control of Renishaw participants, rather than by

reference to relative performance against others. We believe this will be

motivational for participants, and, through analysis, have found very few

companies that would represent effective comparators to Renishaw for

TSR assessment.

We have decided to use two strategic elements to determine assessment

for the FY2027 PSP awards: covering innovation and operational

excellence. More details are provided later in the report, andwe believe

that these are aligned with our stated strategy and provide the right

balance of motivation to senior leaders across the business.

Long-term assessment

targets

— Performance through the

economic cycle.

We discussed the way we set targets for EPS delivery with a desire to

reward sustained earnings growth over the medium term in line with our

stated growth aspirations. We will look to set targets in line with our

external guidance, while recognising that volatility of EPS outcomes in

particular years may make some three-year performance periods more

stretching than others, reflecting the base-year performance.

We will assess ROIC delivery based on the average performance over

therespective three-year performance period, with actual targets set with

reference to our externally stated guidance.

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Remuneration Policy continued

What we heard through consultation continued

Themes through

consultation

Key discussion topics The way we have reflected shareholder discussions within our

proposedPolicy

Deferral into shares of

Annual Bonus awards

— Extent of deferral of bonus

awards into shares.

— Interaction with minimum

shareholding requirement.

— Removal of ‘enhanced

recovery provisions’ for share

awards to CEO from FY2027.

Conversations covered evolving market practice around reductions and,

in some cases, waiving of deferral requirements once minimum

shareholder guidelines had been met. Many shareholders werekeen

thatdeferral remained in place, and we heard support for anapproach

whereby deferral levels were standardised with further reduction where

shareholding guidelines were met. Shareholders indicated this felt

arobust balance alongside the introduction of anewLTIP.

Our proposals maintain and standardise deferral into shares at 50% ofthe

bonus earned (with a reduction to 33% where shareholding guidelines are

met or exceeded by the individual).

Post-cessation Policy

— Tapering of post-cessation

holding requirement within

existing Policy.

Removal of tapering of post-cessation requirements after 12 months.

Therefore any future Executive Director leavers will be required to

maintain their shareholding requirement for two years post-cessation

ofemployment (or actual shareholding at exit if lower).

Key changes of our proposed new Policy

Proposed Policy change Intended route to implement for FY2027

Introduction of an LTIP for all Executive Directors.

Maximum permitted awards of 225% of salary.

Vestingafterthree years with vested shares subject

tofurther two-year holding period.

Awards made as Performance Shares, with vesting

linkedtoattainment against targets set at start of

performance period.

Malus and Clawback provisions attached to awards

(asdisclosed in more detail within notes to thePolicytable).

— Subject to approval from shareholders at the November 2026 AGM,

we will make first award with performance targets based on the

three-year period beginning 1 July 2026 (FY2027–FY2029).

— LTIP award levels for CEO of 200% of salary, and 175% of salary

forCFO.

— The long-term incentive award will be made following the November

AGM. Wewill make this using prevailing salaries of participants at the

time of award and use the same share price as was used to determine

the deferred annual bonus award for Will in respect of his deferred

Annual Bonus award from FY2026 (scheduled to be awarded in

October 2026).

— These awards will vest (to the extent of performance achieved) in

October2029 (aligned to the vesting date of the Annual Bonus award)

and wethen expect to align all grants and vestings to occur at the

same point in future years.

— Any awards vesting from the Long-Term Incentive Plan will be subject

to further two-year holding period before scheduled release.

Reduction in maximum level of Annual Bonus permissible

under Policy (from 225% to 175%).

— Maximum award level of 150% for FY2027 for both Executive Directors.

Deferral of Annual Bonus into shares standardised for

Executive Directors at 50% of award (reducing to33%

where shareholding guideline met at point ofaward).

— 50% of Annual Bonus earned deferred into Company shares for three

years (reduced to 33% if shareholding guideline met at point of award).

Removal of formal underpin whereby no awards couldbe

made under strategic metrics ifathresholdlevel of profit

isnot met.

— We will remove this underpin but continue to retain overriding

abilityforthe Committee to adjust award outcomes and override

formulaicoutcomes.

Clarification of shareholding guideline. — Requirement of 200% of salary (or level of PSP award in event this

ishigher during the life of the Policy).

— Assessed based on average share price over last quarter of the

respective financial year (rather than year-end share price).

There are a number of additional changes we have made to the way we will implement the Policy (not to the Policy itself) designed

todrive simplicity, transparency and operational efficiency. These are described within the Annual Report on Remuneration.

Renishaw plc Annual Report 2026

CONTENTS

How our proposals reposition target reward levels for our CEO

These changes mean that the reward structure more closely aligns with our strategy and wider market practice, with the majority

ofvariable reward linked to three-year performance delivery. The reduction in Annual Bonus combined with the introduction of

along-term incentive plan means that overall target levels of reward are higher, with target reward levels moving to around median

against the comparator groups we identified, as shown below.

Renishaw

858

667

638

705

783

839

858

911

879

803

961

999

1,026

100%

75%

88%

75%

100%

88%

75%

88%

75%

100%

90%

1,645

1,674

1,691

88%

1,825

100%

2,025

100%

2,175

100%

2,235

100%

2,371

120%

2,431

125%

2,439

125%

2,891

125%

3,024

125%

3,032

Current

Company

Fixed: Base and pension Target annual bonus % Target LTI %

Company

Renishaw

Proposed

Company

CEO Target Remuneration

Current and Proposed Vs Comparator Group £k.

Shows industrial group comparator companies 1/3rd to 3 x Renishaw market cap.

CEO Target

Remuneration

Industrials

group £k

FTSE 250 excluding

Financial Service £k

(market cap £1.5-3bn)

Lower quartile 1,792 1,751

Median 2,273 2,368

Upper quartile 2,552 3,001

Notes/assumptions

— Renishaw target reward assumes 50% of Annual Bonus opportunity

and50%vesting of PSP award

— Shows reduction of Annual Bonus opportunity for CEO from

200%to150%from FY2027, alongside introduction of PSP award

— Renishaw current CEO target reward = £1,645k. Proposed target

reward=£2,235k

— Market data was analysed in December 2025 and does not reflect

anysubsequent changes to reward within comparator organisations.

Incentive design for CEO – FY2027

Introduction of long-term incentive from FY2027, coupled with reduction in annual bonus opportunity.

Current – FY2026

Annual Bonus only

FY2027 Implementation

Balance of Annual Bonus + Performance Share Plan Award

Annual Bonus:

Maximum = 200% of salary

Assessment weighted 80%to profit

delivery, 20% to annual strategic metrics

Compulsory deferral of 62.5% of award

into shares

Annual bonus:

Maximum = 150% of salary

Weighting: 80% financial metrics,

20%strategic

50% of award deferred into Company

shares for three years (reduced to 33%

where shareholding requirement met)

Performance Shares (PSP):

Grant = 200% of salary

Weighting: 80% financial metrics,

20%strategic

Shares vest after three years, followed

by two-year holding period

Current target total

Remuneration £1,645k

Future target total

Remuneration £2,235k

Renishaw plc Annual Report 2026

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Remuneration Policy continued

Remuneration Policy

Introduction

This section of the Directors’ Remuneration Report sets out the proposed Directors’ Remuneration Policy of the Company

(seepages100 to 109 inclusive), to be approved at the 2026 AGM. If approved by shareholders, this Policy will come into force

afterthe 2026 AGM, for a period of up to three years. The 2026 Policy was determined by the Committee after reviewing market

practice and the alignment of the existing Policy to Company strategy, and after an extensive consultation exercise with

shareholdersearlier in 2026.

To ensure conflicts of interest are managed, the Committee ensures no Director determines the Policy regarding their own

remuneration. The specific way we propose to implement this Policy for FY2027, subject to Shareholder approval at our AGM

inNovember 2026, is provided in our Annual Report on Remuneration, beginning on page 110.

Policy objectives

Our objectives are to ensure that our Remuneration Policy:

— can attract and retain Directors of the calibre needed to lead a complex and international business such as Renishaw;

— avoids unnecessary complexity, so that all stakeholders (including participants) are clear on any performance targets set and

what they need to do to achieve them;

— encourages a long-term mindset and associated decision-making, designed to link reward outcomes to sustainable growth

delivery and value creation for shareholders, consistent with the Company’s purpose and values;

— considers and is commensurate with pay and reward across the Group; and

— has appropriate mechanisms to ensure that reward outcomes are determined and finalised in the context of wider business

performance and the shareholder experience.

Proposed Remuneration Policy table for Executive Directors

Base salary

Purpose and link tostrategy

To provide a competitive remuneration package tomotivate and retain Executive Directors of the

required calibre tohelp the Group meet its objectives to deliver the Group’s strategy.

Operation

Salaries are normally reviewed and set annually and effective from 1 January in line with the effective

date forthe wider workforce. Base salary is set in the context of pay for similar roles in industrial peers

and in UK-listed companies of similar sizeand complexity.

Opportunity

Base salary increases will normally be capped at the level of salary increases for the broader workforce

in the Executive Director’s home market, unless the Committee in its absolute discretion determines that

circumstances warrant ahigher increase.

Example circumstances include:

— to reflect a significant change in aDirector’s role or responsibilities;

— if (in shareholders’ interests) a Director was intentionally appointed on asalary that is below what the

Committee considers to be the appropriate level of market salary and their subsequent performance

in the role warrants a higher salary increase; or

— if a Director's salary is no longer market competitive due to significant market movements.

The rationale for any such higher increase will be disclosed in the relevant annual report on remuneration.

Performance measures

Not applicable.

100

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Proposed Remuneration Policy table for Executive Directors

Benefits

Purpose and link tostrategy

To provide market-competitive benefits thatmotivate and retain Executive Directors and enable them to

give maximum attention totheir role.

Operation

Benefits provided on an ongoing basis include:

— a car or car allowance;

— private medical insurance;

— life assurance; and

— long-term disability cover.

If, on the appointment of a new Executive Director, relocation is required to the Director’s place of work,

reasonable and proportionate relocation support may beprovided.

Additional benefits may be provided in the future taking into account individual circumstances,

includingbut not limited to payment of financial and adviser fees, expatriate allowances, housing

allowances and tax equalisation. This may include a gross up to reflect any tax or social security due

toreimbursed expenses.

If the Company establishes an ‘all employee’ share plan, any Executive Director may participate on the

same basis as any other qualifying employee.

Opportunity

The maximum level of benefits will be set at alevel that the Committee considers appropriate, taking into

account the nature and location of the role and the individual circumstances of the Executive Director.

Benefits in respect of the year under review are disclosed in the Annual Report on Remuneration.

Performance measures

Not applicable.

Pension

Purpose and link tostrategy

To provide a pension contribution/allowance inline with the wider workforce of the local market of the

Executive Director and to motivate and retain Executive Directors of the required quality to meet the

Group’s objectives.

Operation

Executive Directors receive pension contributions into the Company’s defined contribution scheme,

orallor part delivered asa cash allowance paidin lieu.

Will Lee is a deferred member of the Company’s defined benefit scheme, which closed for future

accruals on 5 April 2007.

Opportunity

The maximum contribution to the defined contribution scheme or, where applicable, additional salary

payment inlieu of contributions, is set at a level not exceeding that available to the majority of the wider

UK workforce or the local market of the Executive Director (currently 9% of base salary in the UK).

The Committee retains discretion to determine the approach and calculation of the wider workforce

pension level, including, if relevant, the methodology for international directors.

Performance measures

Not applicable.

101

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Remuneration Policy continued

Proposed Remuneration Policy table for Executive Directors

Annual bonus

Purpose and link tostrategy

To incentivise and reward achievement of the Group’s financial goals and delivery of strategic aims.

Deferral of part of any award into shares enhances alignment with shareholders.

Operation

Targets are normally reviewed annually, and any payout is determined by the Committee after the

year end, taking into account performance achieved against the stated targets.

To the extent that the performance criteria has been met, 50% of the bonus earned will be compulsorily

deferred into Company shares for three years, reducing to 33% where the shareholding guideline is met

at the end of the financial year to which the reward relates.

Dividends may accrue on deferred shares over the deferral period and, if so, will be paid as additional

shares on vesting. Thenumber of additional shares may be calculated assuming reinvestment into

shares on such basis as the Committee determines.

The Committee sets Group performancetargets.

In the case of financial measures, for achieving an appropriately stretching levelof threshold

performance, up to 25% of the maximum opportunity is earned, increasing typically on a straight-line

basis to a target at which 50% of the maximum opportunity would be earned, and to acap at which the

maximum opportunity could be earned.

For strategic measures, payouts are determined by the Committee between 0% and 100% based on

theCommittee’s assessment of the extent to which the relevant metric or objective has been met.

Malus and Clawback provisions apply to both the cash and deferred portion of the Annual Bonus

(assetout in the Notes to the Policy table from page 104).

Opportunity

Maximum of up to 175% of salary ispermissible forExecutive Directors under the Policy.

Performance measures

Based on Group performance.

The Committee may introduce other metrics (financial and strategic) to reflect the Group’s priorities

oradjust or substitute performance measures applying to existing annual incentive opportunities to

appropriately reflect underlying performance.

Any strategic metrics shall not form more than 25% of the overall bonus opportunity.

Changes from existing Policy

Reduction in maximum opportunity permissible under the Policy to175% of salary (currently 225%).

Thismaximum applies to all Executive Directors.

Deferral of awards into shares for three years standardised at 50% of bonus earned (currently 62.5% for

CEO and 50% for other Executive Directors), with further reduction to 33% if the shareholding guideline

is met atthe end of the performance year to which awards relate.

Removal of ‘Enhanced recovery provisions’ applying to part of Annual Bonus delivered in shares,

withcontinued protection existing through malus and clawback provisions.

102

Renishaw plc Annual Report 2026

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Proposed Remuneration Policy table for Executive Directors continued

Long-term incentive

Purpose and link tostrategy

To align the interests of senior leaders and shareholders in growing the value of the Group over the

longterm.

Encourages sustained performance delivery over time.

Operation

Executive Directors are able to receive annual awards of Renishaw plc shares either in the form of

conditional shares or nil-cost options.

Awards granted will normally have a performance period of three years.

Vesting will occur to the extent that performance has been achieved against the targets usually

determined priorto grant. Targets are set to ensure that they are appropriately stretching and aligned

tothe Group’sstrategy.

Dividends may accrue on deferred shares over the deferral period and, if so, will be awarded as

additional shares on vesting. The number of additional shares may be calculated assuming reinvestment

into shares on such basis as the Committee determines.

Shares that vest are normally subject to a further two-year holding period for Executive Directors.

Theholding period may operate on the basis of (i) the LTIP award vesting following the assessment

ofperformance but that, other than as regards sales of shares to cover tax and social security liabilities,

the shares acquired must be retained until the end of the holding period; or (ii) release of the shares

being deferred until the end of the holding period.

Malus and Clawback provisions apply to the long-term incentive in certain circumstances (as set out in

the Notes to the Policy table from page 104).

Opportunity

Maximum of up to 225% of salary for Executive Directors in respect of a financial year.

Awards will typically be expressed against a stated performance range, describing performance

required to deliver threshold, and maximum awards, and the way vesting outcomes are determined

between these points.

For financial measures, a maximum of up to 25% vesting will apply for achievement of

thresholdperformance.

For strategic measures, payouts are determined by the Committee between 0% and 100% based on

theCommittee’s assessment of the extent to which the relevant metric or objective has been met.

Performance measures

Details of specific metrics used for each award and the performance scale adopted will be disclosed

within the relevant annual report on remuneration.

Changes from existing Policy

Introduction of new reward element within Policy.

Shareholding guidelines

Purpose and link tostrategy

Supports the alignment of Executive Director and shareholder interests.

Operation

Each Executive Director is expected to build up and maintain a level of share ownership of at least 200%

of base salary, or level of long-term incentive award (expressed as a percentage of salary) ifhigher.

Executive Directors’ shareholdings are reviewed annually by the Committee to ensure progress is being

made towards achievement of the guideline level of shareholding.

Until the prevailing minimum shareholding guideline is met, all released vested share awards (after sales

to meet estimated tax liabilities) must be retained.

Progress against the guideline is calculated annually as at 30 June, using shares held by the

individual(orspouse). Additionally, deferred bonus shares and LTIP awards for which the performance

assessment has been carried out (i.e. LTIP shares in a holding period and/or LTIP awards which are

exercisable but that have not been exercised) count towards the guideline on a net of assumed tax basis.

Thecalculation ordinarily uses the average ofthe Company share price over the three months prior

to30 June toallow for any short-term share price volatility.

The Committee retains the discretion to modify the application of this guideline in appropriate circumstances.

Opportunity

Not applicable.

Performance measures

Not applicable.

Changes from existing Policy

Amendment such that shareholding guideline would be increased in the event that a PSP award in

respect of a financial year in excess of200% wasmade to the participant.

Confirmation that calculation against guideline will be performed using an average share price of the last

quarter ofthe financial year.

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CONTENTS

GOVERNANCE REPORT

Directors’ Remuneration Report continued

Remuneration Policy continued

Proposed Remuneration Policy table for Executive Directors continued

Post-employment shareholding Policy

Purpose and link tostrategy

Supports the principle of long-term share ownership that is promoted by the UK Corporate

GovernanceCode.

Operation

Executive Directors will be required to maintain a personal shareholding in Renishaw at a level of at least

the lower of their actual shareholding and the level of their minimum shareholding guideline for two years

following cessation of employment.

The Committee retains the discretion to modify the post-employment shareholding requirement in

appropriate circumstances – for example, on a change of control, or if a conflict of interest arises with

anExecutive Director’s next appointment, or in compassionate circumstances.

Opportunity

Not applicable.

Performance measures

Not applicable.

Changes from existing Policy

Post-employment holding of prevailing shareholding requirement (or lower if actual holding is lower)

foraperiod of two years post-cessation of employment, with removal of tapering after one year

contained in existing Policy.

To support ongoing administration, any unvested deferred bonus shares for good leavers would be

vested on the second anniversary of cessation of employment (aligned to the post-employment Policy).

Notes to the Policy table

Malus and clawback

In line with the Governance Code, the Committee has agreed

malus and clawback provisions for incentive awards, which

areincluded within associated participant communication and

associated documentation and Plan rules. These provisions

apply to the Annual Bonus, deferred bonus shares and

LTIPawards.

The Committee retains discretion to amend payouts should

anyformulaic outcome not reflect the Committee’s assessment

ofoverall business performance, or if the Committee

considersthe formulaic outturn is not appropriate in the

contextof circumstances that were unexpected, unforeseen,

orinappropriate for any other reason.

Part or all of any awards made under the Annual Bonus or

LTIP(whether paid in cash or deferred/awarded in shares)

maybe subject to these provisions in the event of any:

— material financial misstatement;

— error in calculation;

— gross misconduct on the part of the participant;

— corporate failure;

— material loss;

— reputational damage; and/or

— other exceptional circumstance as determined by the

Remuneration Committee.

The timing of potential application of these provisions is shown

below and is designed to reflect the timing of determination

ofawards under the respective Plans, and the underlying

performance periods upon which awards were based.

These provisions are set to reflect a timeframe in which the

Company's financial reporting, audit and risk procedures would

typically identify one of the malus and clawback trigger events.

The Committee retains the discretion to extend the clawback

period in the event of an ongoing investigation.

Malus Clawback

Annual Bonus

– cash award

Up to point of cash

payment (usually in

September following

completion of

performance year).

Aligned to annual

bonus share

deferral period.

Annual Bonus

– deferred shares

Up to the end of

thedeferral period

(threeyears after

awardof shares

following completion

ofthe respective

performance period).

None post end of

the deferral period.

Shares awarded

under LTIP

During vesting period. To the end of the

holding period.

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Policy for the remuneration of employees

moregenerally

The Group aims to provide a remuneration package that is

competitive in an employee’s country of employment, which

isappropriate to promote the long-term success of the Group.

The Company intends to apply this Policy fairly and consistently

ensuring that it can compete successfully in the marketplace

andsufficiently retain and motivate employees. In respect

oftheExecutive Directors, a greater proportion of the

remuneration package is ‘at risk’ and determined by reference

toperformance conditions.

The Committee does not consult directly with employees as part

of the determination of the Policy for Executives but does receive

regular oversight and updates on wider workforce reward

policies and practices.

Approach to performance metric selection and target

setting under variable reward plans

The Committee reviews the use of performance metrics at the

start of each respective performance period. Metrics chosen

typically align with the strategic KPIs of the Group (see pages

11to 13). On occasion, we may complement these with other

metrics designed to focus leadership on specific themes or

objectives, aligned to the overall pursuit of our stated strategy.

Metrics and weightings between them may change over

successive awards and this will be disclosed in the Annual

Report on Remuneration along with an associated rationale

forthe change.

Our long-term metrics are intended to drive alignment between

strategic execution and long-term value creation for our

shareholders. We use multiple metrics, designed to reflect

sustained delivery of financial and strategic performance.

Targets are set against a performance scale. The way these

willbe set may differ (depending on the specific metric) but

willbe informed by a combination of internal and external

forecasts ofthe business itself, and on occasion with reference

to performance ranges adopted for companies of similar size

and/or complexity. We set targets designed to be achievable, but

where maximum awards represent superior levels of performance.

Weretain the right to vary or adjust or substitute measures

ortargets in the event that material events happen during the

performance period that were not foreseen when the targets or

measures were set, with agoal of ensuring that revised targets

ormeasures are no less difficult to satisfy than the original

targets when set.

Use of discretion

The Committee has the ability to apply discretion to amend

thePolicy with regard to minor or administrative matters where

itwould, in the opinion of the Committee, be inappropriate to

seek or await shareholder approval. Additionally, it has the ability

to apply discretion to ensure that the actual implementation is

consistent with the guiding aims set out in this report.

Examples include (but are not limited to):

— Amendment to formulaic outcomes under incentive plans.

The Committee retains the right to adjust overall formulaic

outcomes (up or down) to ensure resultant awards are

afairreflection of overall Company achievement and

thestakeholder experience over the respective

performanceperiod.

— Honouring of legacy commitments to individuals. Example

situations could include the ability for the Committee to

makeremuneration payments and payments for loss of

officewhere the terms were agreed before this Policy

cameinto effect orat a time when the individual was not

aDirector of the business, provided these terms were not

agreed in anticipation of the individual becoming a Director

ofthebusiness.

— Minor changes to the Policy. This could include minor

changes such as in response to regulatory, exchange

control,administrative or tax purposes to take account of

achange in legislation, where making a change would be

disproportionate to the level of discretion being exercised.

Any use of discretion would be fully disclosed to shareholders,

usually within the next published Annual Report on Remuneration.

All discretions under any share plan established by the

Companywill be available to the Committee under this Policy,

except where explicitly limited by this Policy. Share plan awards

may be settled, in whole or in part, in cash, although the

Committee would only settle an Executive Director’s award

incash in appropriate circumstances, such as where there is

aregulatory restriction on the delivery of shares or in respect

ofthe tax liability arising in connection with an award.

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Directors’ Remuneration Report continued

The Committee will not offer non-performance-related incentive

payments (for example a ‘guaranteed sign-on bonus’).

Salary, pension and benefits

For an external hire, base salary will be set in line with the

factorsset out in the Policy table, taking into account the

individual’s experience and the amount required to attract the

individual to join the Company. Pension and benefits will be

provided in line with the Policy table.

Where a new Executive Director is required to relocate from

theirhome location to take up their role, the Committee may

provide reasonable relocation assistance and other appropriate

allowances if business needs require it.

Variable remuneration

Variable remuneration will ordinarily be provided in accordance

with the Policy table and up to a maximum of 400% of salary. Any

award in respect of forfeited remuneration asdescribed below is

excluded from the maximum permitted variable remuneration.

Forfeited remuneration

The Committee may make payments or awards to buyout

remuneration forfeited by new hires in connection with leaving

aprevious employer. Any such buyout awards would ordinarily

have a fair value no higher than that of the awards being

replaced and would be structured as far as possible to

replicatethe remuneration being forfeited, in terms of any

vestinghorizons or performance linkage.

Approach to recruitment remuneration

When agreeing the remuneration package for a new Executive

Director, the Committee will ordinarily apply the Policy for

existingExecutive Directors to ensure a consistent approach.

The Committee retains discretion to award other elements of

paythat it considers are appropriate. However, this discretion

iscapped and is subject to the limits referred to below.

Circumstances in which these other elements may be

awardedinclude:

— an interim appointment being made to fill an Executive

Director role on a short-term basis;

— if exceptional circumstances require that the Chair or

aNon-executive Director takes on an executive function

onashort-term basis; and

— if an Executive Director is recruited at a time in the year when

it would be inappropriate to provide a bonus for that year as

there would not be sufficient time to assess performance.

Subject to the limit on variable remuneration set out in the text

to the right, the quantum in respect of the months employed

during the year may be transferred to the subsequent year so

that reward is provided on a fair and appropriate basis.

The Committee may also alter the performance criteria and

deferral period applicable to the annual incentive opportunity

ifthe Committee considers that the circumstances of the

recruitment merit such alteration. Any use of this discretion

wouldbe accompanied by a full rationale in the relevant annual

report on remuneration.

Minimum

100%

880

39%

25%

35%

2,257

24%

32%

43%

3,634

20%

27%

53%

4,421

Target

Fixed pay Annual bonus Long-term (PSP)

Maximum Maximum plus

50% share

price growth

Minimum

100%

592

41%

27%

32%

1,445

26%

34%

40%

2,299

21%

29%

50%

2,758

Target Maximum Maximum plus

50% share

price growth

CFO (£k)CEO (£k)

Assumptions

Fixed – Shows the value of fixed pay using a salary value of £787k for the CEO and £525k for the CFO, with expected benefit values based

onour Policy. Pension contributions reflect wider workforce levels in the UK of 9% of salary. Assumes no awards under variable plans.

Target – Calculation as per fixed with awards of 50% of maximum under the Annual Bonus and PSP. Annual bonus opportunity for both

CEOand CFO of 150%. PSP award for the CEO of 200% of salary with an award to the CFO of 175% of salary.

Maximum – Calculation as per fixed with full awards under Annual Bonus and PSP.

Maximum plus share price growth – As maximum, but assumes a 50% share price increase between award and vesting for the PSP award.

Illustrations of application of Remuneration Policy

The bar charts below for each Executive Director show illustrative remuneration for the financial year ending 30 June 2027 under

different performance scenarios, subject to approval of the revised Policy at the 2026 AGM.

Illustration of the application of Remuneration Policy

Remuneration Policy continued

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Provision Policy

Notice period

12 months’ notice by either party. No obligation to pay a specific amount in compensation for loss of office.

Pension

Pension will continue to apply until the termination date. Payment in lieu of notice will be considered up to a period

of12 months. Payments in lieu of notice include base salary, pension and benefits and may be paid in instalments

and subject to mitigation. The Committee may determine that certain benefits should be continued instead of

making apayment in lieu of them.

Benefits

Benefits will continue to apply until the termination date; payment in lieu of notice will be considered up to a period

of12 months. The Committee has discretion to determine that certain benefits should continue to be provided rather

than making a payment in lieu of notice.

If the Company establishes an ‘all employee’ share plan, the treatment of any awards under it on cessation

ofemployment and on a change of control of the Company or other relevant event would be determined in

accordance with the rules of the plan.

In appropriate circumstances, the Committee may continue the provision of certain benefits (for example,

privatemedical insurance) for a period following cessation.

Treatment of

annual incentive

plan awards

No annual incentive is payable for the financial year, unless the Committee determines otherwise in certain

‘goodleaver’ circumstances. These include ill health, death, disability, retirement in agreement with the Committee,

redundancy or any other reason as the Committee in its absolute discretion may determine. For ‘good leavers’,

anypayment would normally be prorated for time and reflect the Company’s performance against the targets

setatthe start of the year. It would also take into account the circumstances of the individual’s loss of office.

TheCommittee retains discretion to pay any bonus earned for the year of cessation wholly in cash, but would

dosoonly in circumstances it considers compassionate, such as in the event of death or ill health.

Unvested deferred share awards normally lapse, unless the Committee determines otherwise for a ‘good leaver’.

Insuch cases, unvested awards would normally vest on the earlier of their scheduled vesting date or two years post

leaving with no proration, although theCommittee may elect to apply time-proration adjusting awards to reflect the

time employed during the deferral period. The Committee has discretion to determine that deferred bonus share

awards will vest at cessation of employment in appropriate circumstances.

Unvested awards normally vest early on a change of control of the Company or other relevant event in accordance

with the rules of the Plan.

Treatment of

LTIPawards

Awards usually lapse on cessation of employment, unless the Committee determines otherwise for a ‘good leaver’.

In such cases the number of shares would normally be prorated to reflect the period employed within the three-year

performance period, with vesting usually occurring on the scheduled vesting date and subject to the original

performance conditions set by the Committee. Vested LTIP awards would be released at the end of the originally

envisaged holding period or, at the discretion of the Committee, on the later of the end of the performance period

and two years post cessation.

The Committee has discretion to determine that LTIP awards will vest/are released at cessation and/or to amend

time pro-rating in appropriate circumstances.

On a change of control or other relevant event, LTIP awards will be treated in accordance with the Plan rules.

Other payments

In appropriate circumstances, payments may also be made to a departing Director in respect of accrued

holidaypay, and outplacement and legal fees.

Exit Payments Policy

The Executive Directors’ service contracts reflect the Company’s

Policy regarding notice periods. No payment will be made for

atermination by the Company for a breach by the Executive

Director of their service contract. In other cases, payment in

lieuofnotice will be considered up to the 12 months’ notice

period tocover base salary, benefits and pension contributions.

Ifadditional compensation is required to be considered,

suchason a settlement agreement, the Committee will consider

all relevant commercial factors affecting the specific case.

Where a buyout or other one-off award is made, the leaver

provisions would be determined at the time of the award. The

Committee reserves the right to make additional exit payments

where such payments are made in good faith in discharge of

anexisting legal obligation (or by way of damages for breach of

such an obligation) or by way of settlement or compromise of any

claim arising in connection with the termination of a Director’s

office or employment. Asummary of the key elements of the

approach for cessation ofemployment is set out below.

Existing obligations

When an internal appointment is made, any pre-existing

obligations will be honoured, and payment will be permitted

under the Policy.

Service contracts

The Executive Directors’ service contracts are for an indefinite

period and require 12 months’ notice of termination by either

party. There are no obligations in any Executive Director’s

servicecontract, or Non-executive Director’s letter of

appointment, that would require the Company to pay

aspecificamount of compensation for loss of office.

Directors’ service contracts are available for inspection at

theCompany’s registered office upon written request to the

Company Secretary.

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CONTENTS

GOVERNANCE REPORT

Directors’ Remuneration Report continued

Remuneration Policy continued

Legacy remuneration arrangements

The Committee reserves the right to make remuneration

payments and payments for loss of office notwithstanding that

they are not in line with the provisions set out on page 107 where

the terms of payments were agreed:

— before the Policy came into effect (provided that, in the case

of any payments agreed on or after 16 October 2014 they

arein line with any applicable shareholder-approved

Directors’ Remuneration Policy in force at the time they were

agreed or were otherwise approved by shareholders); or

— at a time when the relevant individual was not a Director

ofthe Company and, in the opinion of the Committee,

thepayment was not in consideration for the individual

becoming a Director of the Company.

For these purposes, ‘payments’ includes the satisfaction of

variable remuneration and, in relation to an award over shares,

the terms of the payment are ‘agreed’ no later than the time the

award is granted.

Statement of consideration of employment conditions

elsewhere in the Group

The Committee takes into account the pay and employment

conditions of the Group in the country in which the Executive

Director resides and is satisfied that the approach taken is fair

and reasonable based on market conditions and practice, and

the best interests of shareholders. When considering the annual

salary review, the average base salary increases awarded to

employees provide a guide when determining the salaries ofthe

Executive Directors (located in the same country).

Statement of consideration of shareholder views

The Committee undertook an extensive shareholder

engagementexercise with key stakeholders during 2026 and

used feedback and insight from this engagement (including

frommeetings and written responses) to finalise the design

oftheproposed Policy as described on pages 97 to 98.

Thefeedback indicated broad support for the proposals

presented and gave an opportunity to discuss specificpoints

within the Policy in more detail.

We remain committed to meaningful shareholder engagement

onremuneration and are grateful to all who engaged with us

andthe feedback we received. We will continue to monitor

trends and developments in corporate governance and market

practice to ensure the structure of executive remuneration

remains appropriate for Renishaw and aligned to the objectives

ofour Remuneration Policy.

External appointments held by Executive Directors

Subject to approval from the Board, Executive Directors may

hold non-executive director positions with other organisations

and may retain fees paid for such a role. Details of any

appointment and associated fees will be included within the

Annual Report on Remuneration.

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Non-executive Directors’ Policy table

The fees for any Non-executive Chair would be determined by the Committee and the fees for other Non-executive Directors

aredetermined by the Chair and the Executive Directors. Set out below is a table summarising the approach to fees for the

Non-executive Directors.

The Non-executive Directors are appointed for an initial three-year period subject to annual performance review and re-elections at

subsequent AGMs, unless terminated earlier by either party on one month’s written notice. Appointments will not normally continue

beyond nine years in office, although there may be exceptions where a certain skillset is difficult to replace and/or to allow Renishaw

to conduct a comprehensive recruitment exercise. In the event of the appointment of a Non-executive Chair, a longer notice period

may be agreed of up to six months.

Non-executive Director fees

Purpose and link tostrategy

To provide a competitive fee to attract and retain Non-executive Directors of the required calibre to meet

the Group’s objectives.

Operation

Fees are set taking into account the responsibilities of the role, the expected time commitment and

prevailing market rates.

Additional fees will be payable for chairing of Board Committees and assuming the role of Senior

Independent Director.

Additional fees may also be paid for other Board responsibilities, roles or time commitments, if this is

considered appropriate.

Non-executive Directors cannot participate in any of the Company’s performance-based share plans

orannual incentive schemes although their fees may be paid in cash or shares (which may include

anon-performance based nil or nominal cost award over Company shares, which may incorporate

aright to dividend equivalents over the award’s vesting period).

Fees are reviewed at appropriate intervals, usually on an annual basis, with reference to fees payable

tonon-executive directors of companies of a similar size and complexity.

Non-executive Directors do not receive incentive pay or share awards and do not currently receive any

benefits or pension arrangements.

Travel and other reasonable expenses (including fees incurred in obtaining professional advice in

thefurtherance of their duties) incurred in the course of performing their duties are reimbursed to

Non-executive Directors (including any associated tax liability).

Opportunity

Maximum: basic fees are subject to the aggregate limit set in accordance with the Company’s Articles

ofAssociation, as amended by shareholder approval from time to time.

Performance measures

Not applicable.

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Directors’ Remuneration Report continued

Advisers

The Committee uses independent advisers as needed and our

current adviser is Deloitte LLP (Deloitte). Deloitte is a founder

member of the Remuneration Consultants Group and, as such,

voluntarily operates under the code of conduct in relation to

executive remuneration consulting in the UK. The Committee

hasundertaken a review and continues to believe that the

advicereceived from Deloitte is objective and independent

andis satisfied that Deloitte does not have any connections

withtheCompany or any individual Directors that may impair

itsindependence.

Total professional fees and expenses paid to Deloitte for advice

received was £47,850.

Deloitte was appointed by the Committee in March 2021

following a competitive tender process and has provided

otherremuneration and tax advice during FY2026.

Key activities of Committee during FY2026

Governance

— Reviewed and approved the Directors’ Remuneration Report.

— Reviewed external adviser relationship and contribution.

— Undertook effectiveness evaluation/process.

— Reviewed the Committee’s terms of reference.

Remuneration Policy and its operation

— Discussed proposals for changes to the existing Remuneration

Policy and approved changes to be discussed with

shareholders through consultation.

— Considered shareholder feedback and finalised design of

revised Policy to be tabled for approval at the 2026 AGM.

— Approved the Executive Directors’ and Senior Leadership

Teamsalaries.

— Finalised performance outcomes for FY2025, considering

financial and strategic outcomes against targets.

— Determined targets and incentive structure for FY2026.

— Approved grants of deferred shares in respect of FY2025

Annual Bonus awards.

— Determined remuneration arrangements for appointment

ofCFO.

— Approved the structure of the Annual Bonus plan for FY2027

and ongoing approach to target setting.

— Approved intended application of LTIP within the business and

the way this will be introduced and communicated.

People

— Received update on elements of remuneration available to the

wider workforce.

— Approved people objectives for FY2026.

— Reviewed the gender pay gap statistics.

— Approved the wider employee pay review.

— Approved the employee bonus proposal for FY2026, including

changes to Annual Bonus design for senior leaders for FY2027.

What does the Committee do?

The Committee is responsible for setting competitive

remuneration arrangements and incentive structures that attract,

retain and motivate talented people. These responsibilities are

set by the Board and formally recorded in the terms of reference,

which are available at www.renishaw.com/corporategovernance.

Specifically, the Committee is responsible for:

— designing the framework and policy for executive

remuneration;

— determining the remuneration for each of the Executive

Directors and other senior management;

— ensuring that suitable financial and strategic objectives

underpin reward structures and encourage strong

performance; and

— reviewing workforce remuneration and related policies.

To avoid duplication, the table below cross-refers to

disclosuresgiven elsewhere of how we have sought to

complywith Provision 41 of the Governance Code.

Topic Page(s)

An explanation of the strategic rationale for executive

directors’ remuneration policies, structures and any

performance metrics.

90-92

Reasons why the remuneration is appropriate using

internal and external measures, including pay ratios

and pay gaps.

118-119

Whether the remuneration policy operated as intended

in terms of company performance and quantum,

and,if not, what changes are necessary.

90-92

What engagement has taken place with shareholders

and the impact this has had on remuneration policy

andoutcomes.

97-111

What engagement with the workforce has taken place

toexplain how executive remuneration aligns with

wider company pay policy.

111

To what extent discretion has been applied to

remuneration outcomes and the reasons why.

115

Members

All members of the Committee are Independent Non-executive

Directors: Catherine Glickman (Chair), Juliette Stacey, Stephen

Wilson and Professor Dame Karen Holford. The Committee met

six times in FY2026, and we set out in Key activities on this page

a summary of the topics discussed in those meetings.

During FY2026, Kasim Hussain, Group General Counsel &

Company Secretary, acted as secretary to the Committee.

Executive Directors and other individuals including the Group

Human Resources Director may attend Committee meetings

byinvitation (toadvise on the remuneration and performance

ofsenior management and to take part in specific discussions),

although they do not take part in any specific discussions that

directly relate to their own remuneration.

Annual Report on Remuneration

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Statement of consideration of shareholder views

The Committee continues to value insight from shareholders on

remuneration. During FY2026 we have carried out an extensive

consultation process to discuss proposed changes to our

Remuneration Policy. We are proposing material changes to

ourPolicy at the 2026 AGM to strengthen the alignment of our

reward structure with our business strategy, and to ensure

market competitiveness. Full details of our proposed changes,

and the way we have consulted with shareholders, is included

onpages 94 to 98.

Committee meeting attendance record

Committee member Attended

Catherine Glickman (Chair) 6/6

Juliette Stacey 6/6

Stephen Wilson 6/6

Professor Dame Karen Holford 6/6

Statement of consideration of employment conditions

elsewhere in the Group

The Terms of Reference for the Committee mean that the

Committee also directly determine reward for the Senior

Leadership Team.

The Committee receives an annual update on reward across

thebusiness including wider remuneration policies in operation.

Through reviewing these the Committee is able to ensure

alignment between the wider workforce and the Executive

Directors. This enables the Committee to satisfy itself that any

approach taken or changes considered for Executive Director

reward are fair and reasonable, reflect wider market conditions,

are in the interest of shareholders and align with the culture and

wider reward approach in operation. This was particularly

important when considering proposed future changes to our

Remuneration Policy described elsewhere within this disclosure.

We are comfortable that the broader reward framework continues

to operate well, and that there is clear progression in reward

where people progress into larger roles within the business.

The expected balance between fixed and variable reward

changes at more senior roles, with a higher component linked to

delivery of performance outcomes. Our Senior Leadership team

participate in an annual bonus arrangement, using the same

performance metrics as those used for Executive Directors,

andincluding mandatory deferral of part of any award earned

into company shares.

Most employees below our Senior Leadership Team participate

in our Profit Share arrangement. The application of our standard

formula would have led to material increases in award levels for

participants over FY2025. We discussed and agreed further

investment in respect of FY2026 to recognise the superior

performance during the year, with a minimum award of £1,000

(prorated) for any participant. Final awards are a combination

ofseniority of the individual and their respective performance

during the year.

During the year the Committee discussed the average base

salary increases for employees in the UK, and this was used as

aguide when determining pay increases for Will Lee and other

Senior Leadership Team members. Contributions to a pension

plan for Executive Directors have mirrored the prevailing rate

forUK employees since 1 January 2025 (currently 9%).

We continue to monitor the impact of our current reward policies

and practices, such as through our gender pay gap disclosure

inthe UK. The Company continues to focus on benchmark

activity to assess competitiveness of reward against other

companies and the way that transparent job-grading systems

and frameworks can provide career pathways for colleagues.

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Annual Report on Remuneration continued

Remuneration Policy: Implementation in FY2026

Ahead of the Annual Report on Remuneration, we have summarised below the key remuneration outcomes for FY2026. The current

Policy (under which reward was implemented for FY2026) can be found at www.renishaw.com/en/financial-reports--22583. Toensure

conflicts of interest are managed, the Committee ensures no Director determines the Policy regardingtheir ownremuneration.

Summary for Executive Directors

Purpose and link to strategy Implementation in FY2026

Base salary

To provide a competitive remuneration

package to motivate and retain Executive

Directors of the required calibre to help

theGroup meet its objectives to deliver

theGroup’s strategy.

The salary level for Will Lee was reviewed in November 2025, and increases were effective

from 1 January 2026. Will Lee received an increase of 3% (to £787,466). This was slightly

lower than the average increase effective January 2026 for the wider workforce of 3.8%.

The joining salary for John Shipsey was £525,000.

Benefits

To provide market-competitive benefits

thatmotivate and retain Executive

Directors and enable them to give

maximum attention to their role.

Benefits provided this year included a car allowance and private medical insurance.

Thetotal values are set out in the Annual Report on Remuneration on page 114.

Pension

To provide a pension contribution/

allowance in line with the wider workforce

of the home country of the Executive

Director, and to motivate and retain

Executive Directors of the required

qualityto meet the Group’s objectives.

From 1 January 2025 Executive Directors are entitled to receive contributions or cash

equivalents available to the majority of the UK wider workforce (currently 9% of salary).

Annual incentive

To incentivise and reward execution

oftheGroup’s objectives, reward

outperformance and encourage

ExecutiveDirector share ownership.

Assessment is based 80% against Adjusted PBT and 20% against strategic objectives,

which this year were focused on product innovation; environmental, social and governance,

including targets on carbon intensity reduction; and operational excellence, including cash

conversion. These drive long-term growth, new product development and our work on

sustainability, specifically on our environmental targets, and are all linked to the strategy

andvalues of the Group, which underpin our culture and drive behaviours consistent with

ourpurpose.

Neither Allen Roberts (former Group Finance Director) nor John Shipsey (incoming CFO

whojoined the business in April 2026) participated in the annual incentive arrangements

forFY2026.

Maximum opportunity for Will Lee was 200% of salary, with 62.5% deferred into Company

shares for three years.

FY2026 Adjusted PBT was £168.0m: this was above the threshold, paying out at 80% of

the80% maximum. Strategic performance was strong, with a formulaic outturn of 15.5%

ofapossible 20%. Given the high weighting towards profit delivery, the overall outcome

wasanannual bonus award of 95.5% of maximum. See page 93 for full details ofthe

targetsandawards.

Minimum shareholding guideline

Supports the alignment of Executive

Director and shareholder interests.

Each Executive Director is expected to build up and maintain a level of share ownership

ofatleast 200% of base salary. Neither Executive Director currently meets the minimum

shareholding guideline.

Post-employment shareholding policy

Supports the principle of long-term share

ownership and alignment of interests with

shareholders.

Executive Directors will be required to maintain a personal shareholding in Renishaw

atalevel of at least the lower of their actual shareholding and the level of their minimum

shareholding guideline for one year after they step down from the Board, and 50% of

thatlevel for another year.

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Remuneration of the Directors in FY2026

This section of the report sets out the remuneration of the Directors in FY2026. Details of how the Committee intends to implement

the revised Remuneration Policy for FY2027 are set out on pages 94 to 95. During FY2026, the Policy operated as intended in terms

of performance and quantum. The information on pages 113 to 121 has been audited where required under the regulations and is

indicated as audited where applicable.

This Directors’ Remuneration Report has been prepared in accordance with Schedule 8 to the Large and Medium-sized Companies

and Groups (Accounts and Reports) Regulations 2008 (as amended), UKLR 6.6 of the UK Listing Rules and the Governance Code.

Single total figure table (audited) – Executive Directors

Salary Benefits Pension Annual Bonus

Total remuneration

FY2026

£’000

FY2025

£’000

FY2026

£’000

FY2025

£’000

FY2026

£’000

FY2025

£’000

FY2026

£’000

FY2025

£’000

FY2026

£’000

FY2025

£’000

Will Lee 776 752 22 22 62 83 1,482 619 2,342 1,476

Allen Roberts

241 476 10 20 17 52 – 294 268 842

John Shipsey

115 – 5 – 10 – – – 130 –

Total 1,132 1,228 37 42 89 135 1,482 913 2,740 2,318

1 The value of the bonus includes both the value of the annual cash bonus and the face value of deferred shares to be awarded in respect of the relevant financial

year. Deferred shares will normally vest on the third anniversary of grant, subject to continued employment and, for Will Lee, enhanced recovery provisions, where

applicable. The treatment of Allen Roberts’ deferred shares in connection with his departure from the business is described on page 121.

2 Due to an error in the administration of the pension arrangements, pension contributions were overpaid in the FY2025 year. Accordingly, pension contributions

were adjusted during FY2026 to ensure that the total pension allowance payable reflects alignment with the contributions made to the majority of the UK

workforce at 9% from 1 January 2025.

3 Allen Roberts stepped down from his position as Group Finance Director on 26 November 2025 and was employed until 31 December 2025 to enable an

effectivetransition of responsibilities. Payments in the above table show salary and benefits through to 31 December 2025. He received further payments linked

to cessation of employment that are disclosed on page 121.

4 John Shipsey commenced employment on 13 April 2026. The values in the single figure table show his salary and benefits for the period of joining through to

30 June2026.

Single total figure table (audited) – Non-executive Directors

Fees Expenses Total remuneration

FY2026

£’000

FY2025

£’000

FY2026

£’000

FY2025

£’000

FY2026

£’000

FY2025

£’000

John Deer 83 80 1 1 84 81

Catherine Glickman 85 80 0 0 85 80

Sir David Grant 325 325 3 1 328 326

Juliette Stacey 87 80 1 1 88 81

Stephen Wilson 83 80 5 1 88 81

Professor Dame Karen Holford 83 80 1 0 84 80

Richard McMurtry 83 80 0 0 83 80

Camille Deer

69 – 0 – 69 –

Total 899 807 11 4 910 811

1 The Non-executive Directors are not eligible for any variable remuneration and only receive fixed remuneration.

2 Camille Deer was appointed to the Board effective 1 September 2025.

Summary for Non-executive Directors

Purpose and link to strategy Implementation in FY2026

Non-executive Directors’ fees

To provide a competitive fee to attract

andretain Non-executive Directors of

therequired calibre to meet the

Group’sobjectives.

Basic fees were subject to the aggregate limit set in accordance with the Company’s Articles

of Association, as amended by shareholder approval from time to time. Fees were reviewed

in December 2025 and increased by 3% to £84,360 with effect from 1 January 2026.

Therewas no increase to the Chair’s fee of £325,000.

Additionally, in line with the provisions of the existing Policy, the Board agreed that an

additional fee would be payable with effect from 7 April 2026 for those performing the role

ofChair of the Remuneration Committee, Chair of the Audit Committee or Senior Independent

Director. This fee will be £8,000 per annum, and the prorated value for the FY2026 year is

shown within the data tables below for the respective Directors. The Board further agreed that

the basic fees for Non-executive Directors would remain unchanged until 1 January 2029.

None of the Non-executive Directors received any additional fees or bonuses.

113

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CONTENTS

GOVERNANCE REPORT

Directors’ Remuneration Report continued

Annual Report on Remuneration continued

Benefits (audited)

Car allowance

£’000

Other

£’000

Will Lee 20 2

Allen Roberts 10 0

John Shipsey 4 0

Total pension entitlements (audited)

Will Lee is a member of our closed UK defined benefit scheme. The normal retirement age is 65. On death, pension benefits would

pass to that member’s dependants.

Since the closure of the defined benefit scheme, contributions have been made to a defined contribution scheme or paid in cash.

At 30 June 2026

Value of defined benefit

pension entitlement

£’000 per year

Pension

contributions in

respect of FY2026*

£’000 per year

Will Lee 12 62 (paid in cash)

*As disclosed in the single figure table.

Annual incentive outcomes for FY2026

The incentive opportunity is based on financial and strategic objectives, although the award is only payable provided the financial

threshold is met (irrespective of performance against the strategic objectives). The financial objective, based on stretching Adjusted

PBT targets, comprised 80% of the award, while the strategic objectives comprised 20%.

Full details of the financial objectives, strategic objectives and performance against them are set out in the following tables.

Financial objectives

Threshold Profit point A Profit point B Maximum Achieved in FY2026

Adjusted PBT £115m £127m £145m £160m £168m

% of bonus payable for Adjusted PBT performance 10%

(12.5% of

maximum)

20%

(25% of

maximum)

60%

(75% of

maximum)

80%

(100% of

maximum)

80%

(100% of

maximum)

Bonus awards calculated on a straight-line basis between the points in the above table.

Strategic objectives

Strategic metrics were worth up to 20% of the total annual bonus opportunity. Performance against the targets set is shown in the

table below with associated outcomes as determined by the Committee, resulting in 15.5% awarded out of a possible 20%.

Strategic objective Performance outcome against targets

% of bonus

payable

Outcome

(%of bonus

paid out)

Product innovation

— Product launches

— Emerging product line

profitability

— Three major product launches during year (Modus IM for Equator,

Stradaand RMP400S) – at top of range set by the Committee.

— Profitability of the emerging CMM and gauging systems product line

improved substantially during the year, exceeding the stretch target

forthis metric.

8% 8%

Environmental, social and

governance(ESG)

— CO

e reduction from

purchased metals

— Employee engagement

— Significant non-conformances

— CO

e reduction was at the top of set performance range (20% actual

reduction against target of 15%).

— Engagement score reduction during year (below threshold level set by

Committee) with no award for this metric.

— No significant non-conformances during year, achieving maximum award

for this metric.

6% 4%

Operational excellence

— Delivery performance

— Cash conversion

— Cost of product quality

(CoPQ)

— Delivery performance was below the target range, with no award for

thismetric.

— Outcome of 79% was at the target level with the range set by the

Committee, resulting in a partial award for this metric.

— Quality costs fell throughout the year and represents superior performance

to the range set by the Committee, leading to amaximum award.

6% 3.5%

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Final Annual Bonus outcome

The maximum opportunity for FY2026 was 200% of salary for Will Lee with 62.5% of any bonus earned to be deferred into shares

forthree years. Half of the deferred shares will be subject to continued employment, while the other half will be subject to continued

employment and the enhanced recovery provisions described in the Committee Chair’s statement. Neither Allen Roberts nor

JohnShipsey participated in the Annual Bonus forFY2026.

Performance for FY2026 has resulted in the following awards:

Executive Director

Cash bonus

£’000

Deferred into shares

£’000

Total

£’000

Will Lee 556 926 1,482

When considering the outcomes, the Committee has taken a holistic view, including in relation to the employee and wider

stakeholder experience, in addition to performance relative to the targets and objectives set. The Committee considers that the

levelof payout reflects the overall performance of the Group in the year and is appropriate. The Committee has not exercised any

discretion in relation to remuneration outcomes for Executive Directors.

Proposed Implementation of Policy for FY2027: Executive Directors

Base salary – Salaries for both Will Lee and John Shipsey will next be reviewed during FY2027 with any changes effective from

1 January 2027. This timing aligns to pay review activity across the wider business.

Benefits – No changes are proposed to the range of benefits provided.

Pension – Both Executive Directors receive pension contributions of 9% in line with the contributions available to the majority of the

wider UK workforce.

Annual Bonus

Maximum award opportunity for each Executive Director is 150% of salary. Calculations will be determined using annual salary as

at1 April 2027. Targets have been set for each of the metrics below, and these and the associated performance achieved against

them will be disclosed in the following Annual Report on Remuneration.

Metric Link to strategy Weighting

Adjusted operating profit at constant currency Growth 60%

Cash conversion Growth 20%

Product launch delivery Product Innovation 10%

e intensity reduction ESG 5%

Employee engagement ESG 5%

Approach to Annual Bonus for FY2027

We have made some changes to the way we will implement our Annual Bonus for FY2027, alongside the introduction of our

proposed new Remuneration Policy.

— Reduction in opportunity level for CEO (from 200% in FY2026 to 150% for FY2027). This opportunity level will apply to both

Executive Directors.

— Reduced number of metrics, with minimum weighting for any metric of 5%. This has been done to simplify the design and

focus participants on key deliverables.

— Increase in weighting of a cash metric (cash conversion) to represent 20% of the total bonus opportunity.

— Use of an amended metric to assess profit delivery: Adjusted operating profit at constant currency. This is an existing

Alternative Performance Measure and aligns to our desire to measure annual performance at constant rates, and excludes

bank interest, aligning participants to core trading performance.

— Removal of rigid underpin requiring achievement of threshold profit performance before any awards under the annual bonus

are payable. (Malus and clawback provisions will remain unchanged, along with Committee ability to overwrite or amend

formulaic outcomes.)

— A deferral level into shares of 50% of the bonus earned (previously 62.5% for CEO), with a reduction in deferral to 33% where

Executive Directors meet or exceed the minimum shareholding requirement.

— Dividend equivalent shares will be added at the point of vesting.

— Bonuses calculated with reference to annualised salary as at 1 April 2027.

The overall balance between financial and strategic metrics will remain unchanged at 80% financial and 20% strategic.

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Annual Report on Remuneration continued

Long-Term Incentive Plan

This element will be awarded subject to approval from shareholders for our revised Remuneration Policy at the 2026 AGM. The value

of awards that will be made in FY2027 will be 200% of salary for the CEO and 175% of salary for the CFO. Awards will bemadeover

Company shares with vesting linked to Company performance over the three-year period ending 30 June 2029 (FY2027–FY2029

inclusive). Awards will be made based on prevailing annual salary at the point of award.

Subject to shareholder approval, awards will be made following the AGM. These awards will vest in October 2029 following the

assessment of the performance conditions and a two-year holding period will apply. We will use the same share price as used

forthedeferred Annual Bonus award to determine the number ofshares awarded to participants under the LTIP following the

2026AGM.

In future years we expect to make all share awards (both deferred Annual Bonus awards and LTIP grants) at the same time.

Dividend-equivalent shares will be added on vesting (to the extent performance targets are achieved).

Performance targets for FY2027 grants

Targets for the FY2027 grant are shown in the table below. In line with our proposed Policy, the Committee will retain overall

discretion to adjust the level of vesting generated by performance against the targets up or down to ensure alignment with business

performance over the period.

Metric Weighting Choice of metric, target determination and commentary

Adjusted Earnings per share

(EPS)

50%

Why EPS?

Measures our ability to grow earnings in a sustained way over time and align with the

shareholder experience.

Threshold Stretch

EPS growth

3% 13%

Award level 0% 100%

Straight-line vesting between points in the above table.

1 Growth in adjusted earnings per share over the FY2026 value, expressed as acompound annual

growth rate.

Return on Invested Capital

(ROIC)

30%

Why ROIC?

Assessing our efficiency in allocating capital to profitable investments.

Threshold Stretch

ROIC

13% 19%

Award 0% 100%

Straight-line vesting between points in the above table.

1 ROIC is an existing KPI as shown on page 12. ROIC will be calculated for each of the years in the

performance period and then averaged to determine awards against the performance scale shown.

Product Innovation

10%

Why Innovation?

Progression of defined products categorised as emerging in maturity over the

three-year period covering all major parts of the business.

The outcome will be a subjective assessment by the Committee at the end of three

years against performance metrics and an assessment scale set in advance.

(Thespecific targets will not be disclosed in advance for commercial sensitivity reasons.)

See page 94 for more details of how this will be assessed.

Operational Excellence

10%

Why Operational Excellence?

Encouraging and aligning the business to improve efficiency in the way it operates,

manage the cost base and deliver key change initiatives.

As with Product Innovation, defined targets were set at the start of the three-year period,

being to achieve key milestones in the One Renishaw programme. Overall outcomes will

be determined by the Committee against set criteria, and full details will be provided in

the Annual Report onRemuneration following determination of outcomes. This will

describe the targets set, actual performance realised and factors used by the

Committee to make their awarddetermination.

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A similar methodology will be adopted to assess operational excellence against predefined targets that will not be disclosed in

advance due to commercial sensitivity.

Proposed implementation of Policy for FY2027 – Non-executive Directors

Basic fees for Non-executive Directors will remain unchanged until 1 January 2029. We will continue to pay an additional fee

of£8,000 a year for those Directors who chair a Board Committee or who assume the role of Senior Independent Director.

TSR performance graph

The graph below shows our TSR performance, compared with the FTSE 250 Index. The Committee believes this is the

mostappropriate broad index for comparison, because Renishaw is a member of this index. TSR performance was rebased

to100at30 June 2016.

TSR performance

100

150

200

250

300

2016 2017 2018 2019 2020 2021 2022 2023 2024 20262025

RenishawValue of £100 invested on 30 June 2016 FTSE 250 Financial year ended 30 June

Spotlight on product innovation within PSP assessment

Why is innovation so important for us as a business?

Since its inception, Renishaw has been an innovator in measuring and manufacturing systems, developing world-leading products

ofhigh accuracy and precision. Accelerating the rate of innovation is a fundamental driver of future shareholder value creation.

Ourrecent focus has been on profitability within our emerging product lines, and we want this to be a strategic lever within our

incentivedesign to unite leaders.

What criteria will the Committee use to assess performance over the three years?

The Committee will make an assessment based on the progression of a defined group of key products of emerging maturity

categorisation over a three-year period across all major parts of the business. Progress will consider key performance

indicatorsincluding:

— aggregate product-line profitability of defined group achieved vs plan over the three years;

— status of identified group of products at end of year three (including reaching number one or two in market share, or profitability ≥20%)

Nil award Threshold (2–4%) Target (5–7%) Stretch (8–10%)

— Progress behind target

ineach product.

— Limited market

shareimprovement.

— Improved aggregate

profitability but below

forecast plan.

— Strong market share

progression across individual

products, withslower

progression elsewhere.

— Overall profitability of

basketin line with plan.

— Solid gains in profitability.

— Growth in key accounts.

— Profitability ahead of

agreedplan.

— Strong market share growth.

— Superior individual product

performance within overall

identified group of products.

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GOVERNANCE REPORT

Annual Report on Remuneration continued

Directors’ Remuneration Report continued

Chief Executive Officer total remuneration

The table below sets out information relating to the remuneration of the Chief Executive Officer for each of the years in question:

Year

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Will Lee (from 1 February 2018)

Single figure of total remuneration (£’000) 594 653 601 1,488 1,770 802 821 1,476 2,342

Annual incentive award (includes annual cash

bonus and deferred equity incentive) % of maximum 95 0 0 100 100 0 0 41 95.5

Long-term incentive vesting % of maximum n/a n/a n/a n/a n/a n/a n/a n/a n/a

Sir David McMurtry (until 31 January 2018)

Single figure of total remuneration (£’000)

668 1,207 818

Annual bonus payout % of maximum 0 77 100

Long-term incentive vesting % of maximum n/a n/a n/a

1 The remuneration shown is on a prorated basis for the period when Sir David McMurtry stepped down and Will Lee took office to the end of the financial year.

2 Represents the total remuneration received by Sir David McMurtry in relation to this role.

Chief Executive Officer pay ratio

The tables below and on the next page set out the Chief Executive Officer pay ratios as at 30 June in the financial years 2020 to 2026.

The report will build up over time to show a rolling 10-year period. The ratios compare the single total figure of remuneration of the

Chief Executive Officer with the equivalent figures for the lower-quartile (P25), median (P50) and upper-quartile (P75) employees.

Ratiosare presented based on the UK workforce.

We believe that the ratio values are consistent with the Company’s approach to pay and reward. Values have been calculated on the

same basis as for the CEO’s single figure table, with no adjustments made. Overall remuneration for the employees ranked at P25,

P50 and P75 has increased, recognising continued investment in base pay and higher outcomes under the Company profit share

scheme. The increase in the CEO ratio value from the prior year reflects the higher weighting towards variable pay within the

rewardpackage compared to the identified comparator employees, and the corresponding strong performance outcomes for the

year ending 30 June 2026 resulting in a higher overall single figure value. The Committee will continue to monitor the ratios on an

annual basis.

Total remuneration

Financial year Method Employee remuneration Pay ratio

P25 P50 P75 P25 P50 P75

FY2026 Method A

£35,734 £46,567 £61,441 65.5 50.3 38.1

FY2025 Method B £33,140 £45,735 £58,070 44.5 32.3 25.4

FY2024

Method B £30,551 £42,363 £56,783 26.9 19.4 14.5

FY2023 Method B £27,484 £45,554 £55,940 29.2 17.6 14.3

FY2022 Method B £31,099 £42,246 £48,457 56.9 41.9 36.5

FY2021 Method B £28,438 £37,720 £45,170 52.3 39.4 32.9

FY2020 Method B £27,476 £35,619 £51,563 21.9 16.9 11.6

1 We have elected to move to Method A to determine this calculation from FY2026. This is a more statistically robust approach and provides consistency

betweenthe reporting basis for Executive Directors and employees, calculating total remuneration for all UK employees on the same single figure basis as the

Executive Directors.

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CONTENTS

Base salary

Financial year Employee remuneration Pay ratio

P25 P50 P75 P25 P50 P75

FY2026 £31,740 £41,178 £52,450 24.4 18.8 14.8

FY2025 £29,918 £40,675 £52,145 25.1 18.5 14.4

FY2024 £27,035 £38,153 £49,750 26.7 18.9 14.5

FY2023 £24,134 £39,10 0 £48,205 2 9.1 18.0 14.6

FY2022 £27,213 £36,276 £41,331 24.6 18.5 16.2

FY2021 £24,420 £32,670 £42,480 23.0 17.2 13.2

FY2020

£24,650 £32,634 £47,092 20.5 15.5 10.7

1 Where necessary, adjustments were made to the underlying data to reflect a reduction in working hours during April 2020 to June 2020 in connection with the

COVID-19 pandemic. The reductions in salary and employer pension contributions during this time have been added back to give a full-time equivalent figure.

Noother adjustments were made to the underlying data.

Statement of Directors’ shareholding and share interests

The interests of Directors who have served on the Board at any time during the year and their connected persons in the Company’s

ordinary shares as at 30 June 2026 are set out below. There have been no changes to those interests between 30 June 2026 and

the date of signing of this Annual Report.

Number of ordinary

shares of 20p each

beneficially owned

Unvested and

subject to continued

employment

(awarded under the DAEIP)

Minimum

shareholding

guideline

Current

shareholding

(% salary)

Minimum

shareholding

guideline met

Will Lee 22,16 3 10,544 2x salary 180.4% Below

Allen Roberts

15,732 4,010 2x salary n/a n/a

John Shipsey – – 2x salary 0% Below

John Deer 1,878,161

n/a n/a n/a n/a

Catherine Glickman 675 n/a n/a n/a n/a

Sir David Grant – n/a n/a n/a n/a

Juliette Stacey – n/a n/a n/a n/a

Stephen Wilson 1,500 n/a n/a n/a n/a

Professor Dame Karen Holford – n/a n/a n/a n/a

Richard McMurtry 4,988 n/a n/a n/a n/a

Camille Deer – n/a n/a n/a n/a

Total 1,923,219 14,554

1 Current shareholdings for comparison with the shareholding requirements for Executive Directors are calculated based on annualised salary as at 30 June 2026

and by reference to the closing share price on 30 June 2026 (5,120p), and, in line with the Policy, include the net-of-assumed-tax shares subject to DAEIP awards.

2 Allen Roberts ceased employment on 31 December 2025, and his shareholding is shown at this point. He continues to have alignment to Renishaw share

performance through deferred awards under the DEAIP and post-cessation shareholding obligations as disclosed within this report.

3 These interests were non-beneficially held by John Deer but in respect of which he has voting rights.

119

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GOVERNANCE REPORT

Directors’ Remuneration Report continued

Annual Report on Remuneration continued

DAEIP awards granted during the year

Will Lee and Allen Roberts were eligible to receive share awards under the DAEIP in respect of deferred awards under the Annual

Bonus from FY2025 as summarised in the table below.

Director Date of grant Number awarded Award price

Award value

£’000

% of FY2025

Annual Bonus award Vesting date

Will Lee 22 October 2025 10,544 £36.71 387 62.5% 23 October 2028

Allen Roberts 22 October 2025 4,010 £36.71 147 50% 23 October 2028

1 Award price based on average closing middle market price over the five business days preceding the award date.

2 Awards for Allen Roberts will vest in line with the ordinary vesting date in 2028, consistent with his disclosed leaving arrangements.

Summary of scheme interests

At the end of FY2026 the Executive Directors had the following beneficial interests in share awards:

Will Lee

Grant date Award Vesting period

Share price

at grant

Number

at 30 June

2025

Granted

in year

Lapsed

in year

Dividend

equivalents

added in year

Exercised

in year

Number

at 30 June

2026

26 October 2022 DAIEP 26 October 2022

to27 October 2025 £35.08 14,324 – – 881 (15,205)

Nil

22 October 2025 DAIEP 22 October 2025

to23 October 2028 £36.71 – 10,544 – – 10,544

Total 14,324 10,544 881 (15,205) 10,544

1 Dividend equivalents were added at 24 October 2025 in shares ahead of scheduled vesting on 27 October 2027.

2 On vesting, 7,172 shares were sold to cover an estimate of tax and national insurance liabilities, with the remaining shares retained by the individual.

John Shipsey (commenced employment 13 April 2026)

John recently joined the business and does not hold any shares in Renishaw as at 30 June 2026.

Allen Roberts (ceased employment 31 December 2025)

Grant date Award Vesting period

Share price

at grant

Number

at 30 June

2025

Granted

in year

Lapsed

in year

Dividend

equivalents

added in year

Exercised

in year

Number

at 30 June

2026

26 October 2022 DAIEP 26 October 2022

to27 October 2025 £35.08 9,115 – – 560 (9,675)

Nil

22 October 2025 DAIEP 22 October 2025

to23 October 2028 £36.71 – 4,010 – – 4,010

Total 9,115 4,010 560 (9,675) 4,010

1 On vesting, 4,370 shares were sold to cover an estimate of tax liabilities, with the remaining shares retained by the individual.

Executive Directors serving as non-executive directors of other companies

During the year, none of the Executive Directors were paid to serve as a non-executive director of any other company.

Relative importance of spend on pay

The following table sets out the total amount spent in FY2026 and FY2025 on remuneration to all Group employees and on dividends

to shareholders:

FY2026

£’000

FY2025

£’000

Change

Employee remuneration 326,614 306,853 6%

Shareholder dividends paid* 56,842 55,424 3%

*Excludes dividends declared but not yet paid.

Except as shown above, no other distributions have been made to shareholders, or other payments or uses of profit or cash flow,

which affect the understanding of the relative importance of spend on pay.

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CONTENTS

Payments to past Directors and loss-of-office payments (audited)

Allen Roberts stood down from his position as Group Finance Director on 26 November 2025 after 46 years of service, and ceased

employment on 31 December 2025. Details of the determination of his leaving terms were disclosed in our 2025 Annual Report and

there have been no subsequent changes to these arrangements. The respective treatment and associated payments, where

applicable, are disclosed within this Annual Report and summarised below.

Value Disclosure

Salary and benefits to date

ofcessation of employment

duringFY2026

Breakdown: Salary = £241.k, Benefits = £10.8k, Pension = £16.9k.

Total = £268.7k.

Included within single

figure table.

Annual bonus for FY2025

(cashelement)

£147,000 Paid through payroll

inOctober 2025,

disclosed in 2025 Annual

Report on Remuneration.

Pay in lieu of salary and

contractualbenefits for 12 months

£54 6,197 Paid through payroll

inJanuary 2026.

Annual bonus award linked to

FY2025 performance deferred

intoshares

Face value of shares of £147,000 on award (50% of total FY2027

annual bonus value).

Award of 4,010 shares

granted on 22 October

2025, with vesting on

23 October 2028.

FY2026 Annual Incentive

Allen was not eligible to participate in the Annual Bonus for FY2026. n/a

Additional compensation for

lossofoffice

Allen received an additional payment of £1,179,543. This payment

includes £733,407 calculated on a basis consistent with Renishaw’s

enhanced redundancy package terms, £266,593 agreed as part of

the overall settlement of the arrangements relating to his departure

from the business and £179,543 in lieu of an annual bonus for the

period of his active service to 31 December 2025.

Paid through payroll in

January 2026.

Accrued holiday/legal fees/

privatemedical insurance

Accrued holiday = £22,456

Legal fees = £9,000

Ongoing private medical cover will be provided to

31 December2029.

Accrued holiday and legal

fees paid through payroll

in January 2026.

1 The post-employment shareholding requirement will continue to apply to shares acquired pursuant to deferred annual equity awards granted after 30 September

2020. The recovery provisions (covering malus and clawback) under the Policy will continue to apply to relevant remuneration (whether paid in cash or deferred

into shares).

No other payments to past Directors or other loss-of-office payments were made during the year.

Statement of voting at general meeting

At the AGM held on 29 November 2023, votes cast in respect of the Directors’ Remuneration Policy were as follows:

Resolution Votes for % for

Votes

against % against

Total

votes cast

Votes

withheld

Approval of Remuneration Policy 61,006,328 95.50 2,875,973 4.50 63,882,301 15,204

At the AGM held on 26 November 2025, votes cast in respect of the Directors’ Remuneration Report were as follows:

Resolution Votes for % for

Votes

against % against

Total

votes cast

Votes

withheld

Approval of Remuneration Report 61,452,801 95.57 2,849,504 4.43 64,302,305 118,644

This report was approved by the Board and has been signed on its behalf by:

Catherine Glickman

Chair of the Remuneration Committee

22 September 2026

121

Renishaw plc Annual Report 2026

GOVERNANCE REPORTGOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

Directors and their interests

The Directors who served on the Board during the year are

listedon pages 60 to 62. In accordance with the provisions of

the Governance Code, all Directors will retire and, being eligible,

offer themselves for re-election to office or, in the case ofany

Director who was first appointed to the Board since thelast

AGM, election to office at the AGM to be held on Wednesday,

25 November 2026. Details of these Directors areshown on

pages 60 to 62 and full biographical details are available at

www.renishaw.com/directors.

The rules on appointment, reappointment and retirement

byrotation of the Directors and their powers are set out in the

Company’s Articles of Association. There are no powers given

tothe Directors that are regarded as unusual.

The Directors’ interests in our share capital (with the equivalent

number of voting rights), as notified to the Company, are listed

onpage 119. There has been no change in the holdings shown

on page 119 in the period 1 July 2026 to 22 September 2026.

Directors’ and officers’ indemnity insurance

andDirectors’ indemnities

Subject to the provisions of the Companies Act 2006, the

Company’s Articles of Association provide for the Directors

andofficers of the Company to be appropriately indemnified.

Inaccordance with the Company’s Articles of Association and

tothe extent permitted by law, Directors (excluding John Deer)

have been granted an indemnity in respect of loss and liability

incurred because of their office. Neither the Company’s

indemnity nor insurance provides cover if a Director is proven

tohave acted dishonestly, fraudulently or negligently. Copies

ofall indemnities granted are available for inspection at the

Company’s registered office.

The Company also maintains insurance for its Directors and

officers in respect of their acts and omissions during the

performance of their duties.

Responsibility statement

As required under the Financial Conduct Authority’s (FCA)

Disclosure Guidance and Transparency Rules (DTR), astatement

made by the Board regarding the preparation of the financial

statements is set out on page 125.

Share capital and change of control

Details of the Company’s share capital, including rights and

obligations, is given in Note 26 to the financial statements.

TheCompany is not a party to any significant agreements

thatmight terminate on a change of control.

A shareholder authority for the purchase by the Company of

amaximum of 10% of its own shares existed during FY2026.

However, the Company did not purchase any of its own

sharesduring that time.

Auditor

A resolution to reappoint Ernst & Young LLP as the auditor

oftheCompany will be proposed at the forthcoming AGM.

Review of the business

A review of the business and likely future developments is

givenin the Chair’s statement, the Chief Executive Officer’s

review and other sections of the Strategic Report. Segmental

information by geographical market is given inNote2 to the

financial statements.

The principal activities of the Company are the design,

manufacture, sale, distribution and service of manufacturing

technologies products and services, and analytical instruments

and medical devices, as outlined on pages 14 to 20 of the

Strategic Report. The Group has overseas subsidiaries to

manufacture, market and distribute some of the Group’s

products and to support customers in the following major

markets outside the UK:

— Americas: Brazil, Canada, Mexico and USA;

— APAC: Australia, China, Hong Kong, India, Japan, Malaysia,

Singapore, South Korea and Taiwan; and

— EMEA: Austria, Czech Republic, Finland, France, Germany,

Hungary, Ireland, Israel, Italy, the Netherlands, Poland,

Spain,Sweden, Switzerland, Turkey and UAE.

There are also representative offices in Indonesia, Slovakia,

Thailand and Vietnam.

In addition, in Slovenia the Group has a joint venture, RLS Merilna

tehnika d.o.o. (RLS), and a subsidiary that designs andarranges

the procurement of application-specific integrated circuits.

More information is available at www.renishaw.com.

Research and development

The Group continues to invest significantly in developing future

technologies, with R&D activities located primarily in the UK.

Wedevelop technologies that lead to patented products and

methods to help deliver our strategy. More information on R&D

expenditure is contained in Note 4 to the financial statements.

The amount of R&D expenditure capitalised, the amount

amortised and impairment charges in the year are given

inNote12.

Dividends

The Directors propose a final dividend of £47.5m or 65.2p per

share, which, together with the interim dividend of £12.2m

or16.8p per share, gives a total dividend for the year of £59.7m

or 82.0p per share. Last year, the Board agreed a total dividend

for the year of £56.9m or 78.1p.

In addition, a special dividend of 70.0p per share has been

approved by the Directors as an interim dividend. Shareholder

approval for this special dividend is not required.

As of 30 June 2026, 31,085 shares were held by the Renishaw

plc Employee Benefit Trust (EBT). These shares may be used

tosatisfy awards made to employees under the Company’s

employee share plan – namely, the Renishaw Deferred Annual

Equity Incentive Plan (DAEIP). Under the terms of the EBT,

anydividends payable on these shares are waived.

Other statutory and

regulatorydisclosures

122

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CONTENTS

There are no agreements with employees providing for

compensation for any loss of employment that may occur

because of a takeover bid.

Suppliers, customers and other stakeholders

Details on how the Directors have had regard to the need to

promote the Group’s relationships with suppliers, customers

andothers are set out on pages 71 to 73. The effect of that

consideration on the Directors’ principal decisions during

FY2026 is also contained in that section.

Political donations and expenditure

No political donations were made or expenditure incurred

duringthe year.

Events after the balance sheet date

For material events affecting the Company since the

year end(30 June 2026), see Note 26 on page 177

(relatingtothe approval of a special dividend).

Financial risk management, objectives

andpolicies

Descriptions of the following can be found in Note 25 to the

Consolidated financial statements on pages 171 to 176:

— the use of financial instruments;

— the Group’s financial risk management objectives

andpolicies;

— policies in relation to hedge accounting; and

— exposure to market risk, including credit and liquidity risk.

Controlling shareholders

The UK Listing Rules (UKLR) contain certain requirements for

listed companies with controlling shareholders. A controlling

shareholder is a shareholder who individually or with any of

theirconcert parties exercises or controls 30% or more of the

votes that may be cast on all or substantially all the matters

atacompany’s general meeting.

As announced on 26 November 2025, the families of the

Company’s founders, the late Sir David McMurtry and John Deer

(Non-executive Director), have established a joint family holding

company, Deltam Holdings Limited (Deltam), to hold 50.25%

ofthe issued share capital of Renishaw. Deltam is therefore

acontrolling shareholder for the purposes of the UKLRs.

The Company has been informed that the families have

enteredinto arrangements to govern the operation of Deltam,

which include provisions relating to the exercise of voting rights

attached to the Renishaw shares held by Deltam. Under those

arrangements, the Deer family representatives on the Deltam

board can require all such shares to be voted against any

specialresolution of the Company, and the McMurtry family

representatives can require all such shares to be voted in favour

ofany ordinary resolution of the Company. In other circumstances,

ifthe Deltam board of directors cannot agree onhow to vote the

Renishaw shares held by Deltam, then the Deltam board shall

cast the votes as it sees fit. This may include casting some votes

in favour and some votes against the relevant resolution.

Disclosure of information to auditor

The Directors who held office at the date of approval of this

statement confirm that, so far as they are each aware, there is

norelevant audit information of which the Company’s auditor

isunaware. Each Director has taken all the steps that they

oughttohave taken as a director to make themselves aware

ofany relevant audit information and to establish that our

auditoris aware of that information.

Annual General Meeting

The notice convening the AGM is enclosed with an explanation

of our proposed resolutions. At the meeting, the Company will

seek shareholder approval for, among other things, the ability

tomake market purchases of its ordinary shares, up to a total

of10% of the issued share capital.

Substantial shareholdings

The table below discloses the voting rights that have been

notified to the Company under the requirements of the FCA’s

DTR 5 as at 30 June 2026. Please note that these holdings may

have changed since being notified to the Company. However,

notification of any change is not required until an applicable

threshold is crossed.

Substantial shareholdings

% of issued

share capital

Number

of shares

Deltam Holdings Limited 50.25% 36,575,098

There have been no changes notified to the Company in

theholdings shown above in the period 1 July 2026 to

22 September 2026.

Employees

The retention of our highly skilled people is essential to our future.

The Directors place great emphasis on continuing the Company’s

training programmes and competitive rewards. Health and safety

matters are another key area of focus, and well-established

systems of safety management are in place throughout the

Groupto safeguard employees, customers andothers.

Employment policies are designed to provide equal

opportunities irrespective of race, religion, gender, age,

socioeconomic background, disability or sexual orientation.

TheCompany gives full and fair consideration to applications

foremployment from people with disabilities, where suitable,

forappropriate vacancies. Employees who become disabled

while with the Company will be given every opportunity to

continue their employment through reasonable adjustments

totheir working conditions and equipment. Where this is not

possible, the Company offers retraining for other positions.

Theywill also be afforded opportunities to continue training

andgain promotion on the same basis as any other employee.

Details on how the Directors have engaged with employees

andhad regard to their interests are set out in various sections

ofthis Annual Report, including pages 34, 45, 47, 66 and 81.

Information provided to employees on the performance of the

business, consultation with employees and performance

incentives is set outin various sections of the Annual Report,

including page 111.

123

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GOVERNANCE REPORT

CONTENTS

GOVERNANCE REPORT

One of the requirements for companies with controlling

shareholders is that the election or re-election of independent

directors at the AGM is subject to a dual vote of (i) the

shareholders as a whole; and (ii) the independent shareholders,

being any person entitled to vote on the election of directors

whois not a controlling shareholder of the company. Another

requirement is that the listed company is able to carry on the

business that it carries out as its main activity independently

from its controlling shareholders at all times.

For the purposes of UKLR 6.6.1(13), the Board confirms that the

Company continues to carry on the business that it carries out as

its main activity independently from its controlling shareholders

at all times.

Greenhouse gas emissions and energy

consumption

Disclosures concerning GHG emissions and energy

consumption are set out on page 42.

Other statutory and regulatory disclosures continued

Disclosure of information under UKLR 6.6.1R

The information that fulfils the reporting requirements under this rule can be found on the pages identified in the table below:

Section Topic Location

(1) Interest capitalised Not applicable

(2) Publication of unaudited financial information Not applicable

(3) Details of long-term incentive schemes for individual directors Directors’ Remuneration Report, starting on page 90

(4) Waiver of emoluments by a director Not applicable

(5) Waiver of future emoluments by a director Not applicable

(6) Non-pre-emptive issues of equity for cash Not applicable

(7) As item (6), in relation to major subsidiary undertakings Not applicable

(8) Parent participation in a placing by a listed subsidiary Not applicable

(9) Contracts of significance Not applicable

(10) Provision of services by a controlling shareholder Not applicable

(11) Shareholder waivers of dividends Other statutory and regulatory disclosures, starting on page 122

(12) Shareholder waivers of future dividends Other statutory and regulatory disclosures, starting on page 122

(13) Statement in relation to controlling shareholders Other statutory and regulatory disclosures, starting on page 122

Signed on behalf of the Board.

Kasim Hussain

Group General Counsel & Company Secretary

22 September 2026

Renishaw plc

Registered number 01106260

England and Wales

124

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CONTENTS

The Directors are responsible for the maintenance and

integrityof the corporate and financial information included

onthe Company’s website. Legislation in the UK governing

thepreparation and dissemination of financial statements may

differfrom legislation in other jurisdictions.

Under applicable law and regulations, the Directors are also

responsible for preparing a Strategic Report, Directors’ Report,

Directors’ Remuneration Report and corporate governance

statement that comply with the relevant laws and regulations.

Directors’ confirmations

Each of the Directors, whose names and functions can be

foundon pages 60 to 62, confirms that, to the best of

theirknowledge:

— the financial statements, prepared in accordance with the

applicable set of accounting standards, give a true and fair

view of the assets, liabilities, financial position and profit or

loss of the Group and of the Company and the undertakings

included in the consolidation taken as a whole; and

— the Strategic Report and the Directors’ Report include a fair

review of the development and performance of the business

during the year and the position of the Group and of the

Company at the year end, together with a description of

theprincipal risks and uncertainties that they face.

The Directors consider that the Annual Report, taken as

awhole,is fair, balanced and understandable, and provides

theinformation necessary for shareholders to assess the

Group’sposition and performance, business model and strategy.

Signed on behalf of the Board.

John Shipsey

Chief Financial Officer

22 September 2026

Statement of Directors’ responsibilities

inrespect of the Annual Report and

Financialstatements

The Directors are responsible for preparing the Annual Report

and the Group and Company Financial statements in accordance

with applicable law and regulations.

Company law requires the Directors to prepare Group

andCompany Financial statements for each financial year.

Underthat law the Directors are required to prepare the

Groupfinancial statements in accordance with UK-adopted

international accounting standards, and have elected to prepare

the Parent company financial statements in accordance with

United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law)

including Financial Reporting Standard 101, ‘Reduced

Disclosure Framework’.

Under company law the Directors must not approve the

Financialstatements unless they are satisfied that they give

atrue and fair view of the state of affairs of the Group and the

Company and of their profit or loss for that period.

In preparing each of the Group and Company Financial

statements, the Directors are required to:

— select suitable accounting policies and then apply

themconsistently;

— make judgements and accounting estimates that are

reasonable and prudent;

— state whether they have been prepared in accordance

withapplicable accounting standards; and

— prepare the financial statements on the going concern basis

unless it is inappropriate to presume that the Group and the

Company will continue in business.

The Directors are responsible for keeping adequate accounting

records that are sufficient to show and explain the Company’s

transactions and disclose with reasonable accuracy at any

timethe financial position of the Group and the Company and

enable them to ensure that the financial statements comply

withthe Companies Act 2006. They are also responsible for

safeguarding the assets of the Group and the Company and

hence for taking reasonable steps for the prevention and

detection of fraud and other irregularities.

Directors’ responsibilities

125

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GOVERNANCE REPORT

CONTENTS

128 Independent Auditor’s Report

139 Financial statements contents

140 Consolidated income statement

141 Consolidated statement of comprehensive

incomeand expense

142 Consolidated balance sheet

143 Consolidated statement of changes in equity

144 Consolidated statement of cash flow

145 Notes (forming part of the

Consolidatedfinancialstatements)

185 Company balance sheet

186 Company statement of changes in equity

187 Notes to the Company financial statements

Financial statements

Renishaw plc Annual Report 2026

FINANCIAL STATEMENTS

127

FINANCIAL STATEMENTS

Independent Auditor’s Report to the members of

Renishawplc

Opinion

In our opinion:

— Renishaw plc’s Group financial statements and Parent company financial statements (the “financial statements”) give a true and

fair view of the state of the Group’s and of the Parent company’s affairs as at 30 June 2026 and of the Group’s profit for the year

then ended;

— the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;

— the Parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice; and

— the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Renishaw plc (the ‘Parent company’) and its subsidiaries (the ‘Group’) for the

year ended 30 June 2026 which comprise:

Group Parent company

Consolidated income statement for the year then ended Balance sheet as at 30 June 2026

Consolidated statement of comprehensive income and expense for

theyear thenended

Statement of changes in equity for the year then ended

Consolidated balance sheet as at 30 June 2026 Related notes C31 to C52 to the financial statements including

material accounting policy information

Consolidated statement of changes in equity for the year then ended

Consolidated statement of cash flow for the year then ended

Related notes 1 to 30 to the financial statements, including material

accounting policy information

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law

andUK adopted international accounting standards. The financial reporting framework that has been applied in the preparation

ofthe Parent company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101

“Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Ourresponsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial

statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide

abasis for our opinion.

Independence

We are independent of the Group and Parent in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, including the FRC’s Ethical Standard (‘FRC ES’) as applied to listed public interest entities,

andwehave fulfilledour other ethical responsibilities in accordance with these requirements.

Non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group nor the Parent company, with the

following inconsequential exceptions and we remain independent of the Group and the Parent company in conducting the audit.

These exceptions related to the provision of XML formatting services of the local audited statutory financial statements for the

year ending 30 June 2021 and translation of the German GAAP financial statements, including the audit opinion, for the years

ended30 June 2022, 30 June 2023 and 30 June 2024 to a subsidiary in Germany.

For audit periods covering 30 June 2021 to 30 June 2025, we note this is a breach under FRC ES 2019 as the service is not

permitted under paragraph 5.40. For the audit period ending 30 June 2026, we note this is a breach under FRC ES 2024

paragraph5.40.

The services were performed by EY Germany with a total fee across all the six years of service delivery of less than £5k.

Weconsidered that the provision of the service did not create a self-review threat as the prohibited service could only be

deliveredonce the audit has been completed and there was therefore no risk of self-review. Appropriate mitigation also existed

asthe individuals who performed the prohibited services were not part of the audit engagement team. We informed the Audit

Committee of the inadvertent breach in September 2026. We considered this to be a minor breach of the FRC ES and we consider

that an objective, reasonable and informed third party would not conclude that our independence was impaired, and we remain

independent of Renishaw plc in conducting the audit.

128

Renishaw plc Annual Report 2026

CONTENTS

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Group and Parent

company’s ability to continue to adopt the going concern basis of accounting included the following procedures:

— Understanding the process undertaken by management to perform the going concern assessment including the evaluation

ofthe ongoing impact of current global macro-economic factors.

— Obtaining management’s going concern assessment, including the cash flow forecasts for the going concern period, which

covers the period to 31 December 2027. We verified these forecasts were consistent with the Board-approved forecasts ensuring

the operating profit, working capital adjustments and resultant cashflows in the going concern assessment matched those in the

forecasts. The Group has modelled a base scenario, based on the pessimistic version of the business plan; and three ‘severe

but plausible’ downside scenarios linked to the principal risks identified by management reflecting: a significant reduction in

revenue; a significant increase in costs; and a combined reduction in profitability. The Group has also modelled a reverse stress

test based on liquidity in order to determine how much additional downside in trading could be absorbed before the Group

exhausted its cash and cash equivalents and bank deposit balances.

— Assessing the appropriateness of the duration of the going concern assessment period being the period to 31 December 2027;

— Evaluating the key assumptions underpinning the Group’s cash flow forecasts. In particular we compared the revenue growth

projections to external industry forecasts and latest economic data to search for indicators of contradictory information;

— Considering the results of management’s reverse stress test, assessing whether such a scenario was remote with reference

tomanagement’s forecasts, the Group’s historic trading and other information obtained throughout the audit, such as how the

Group has responded to market challenges;

— Assessing the historical accuracy of management’s forecasting for the past 3 years, by comparing the Group’s actual results

toBoard approved budgets and re-forecasts to further challenge the prospective financial information included in the going

concern assessment;

— Testing the clerical accuracy of the model used to prepare the Group’s going concern assessment and the appropriateness

ofthe model for this purpose; and

— Assessing the appropriateness of the Group’s disclosures regarding the going concern basis of preparation.

We observed that the Group held cash and cash equivalents and bank deposits of £291.0m and had borrowings of £2.0m at

30 June 2026 which are not subject to financial covenants. Management’s reverse stress test indicated the Group would have to

suffer a trading level so low, before it depleted its cash and cash equivalents and bank deposit balances, that the Directors consider

that the probability of the events occurring that could trigger this would be remote. The Directors also concluded that the risk of

aone-off cash outflow, that would exhaust the Group’s cash and cash equivalents and bank deposit balances in the assessment

period, was also remote.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the Group and Parent company’s ability to continue as a going concern

forthe period to 31 December 2027.

In relation to the Group and Parent company’s reporting on how they have applied the UK Corporate Governance Code, we have

nothing material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the

Directors considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections

ofthis report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the

Group’s ability to continue as a going concern.

129

Renishaw plc Annual Report 2026

FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Overview of our audit approach

Audit scope

— We performed an audit of the complete financial information of five components and audit procedures

onspecific balances for a further four components and specified procedures on three other components.

— The components where we performed full, specific or specified audit procedures accounted for 93%

ofAdjusted profit before tax, 88% of Revenue and 86% of Total assets.

— We performed centralised procedures on the following accounts and/or transactions: goodwill, elimination

of intercompany balances and intercompany transactions during the year, dividends and distributable

reserve testing and consolidation journals.

— For certain accounts the audit procedures were completed by a combination of ourselves, as the primary

team, and by component auditors. These included cash and cash equivalents, borrowings, right of use

assets and lease liabilities, finance lease receivables, investment properties, derivatives, reimbursement

right, pension asset and liabilities, current tax assets and liabilities, deferred tax assets and deferred

taxliabilities.

Key audit matters

— Revenue recognition – the risk of management override through inappropriate manual journals to revenue

— Valuation of the defined benefit pension liabilities

— Completeness of provision for uncertain tax positions and related tax disclosures

Materiality

Overall Group materiality of £8.4m which represents 5% of Adjusted profit before tax.

An overview of the scope of the Parent company and Group audits

Tailoring the scope

We have followed a risk-based approach when developing our audit approach to obtain sufficient appropriate audit evidence on

which to base our audit opinion. We performed risk assessment procedures, with input from our component auditors, to identify

andassess risks of material misstatement of the Group financial statements and identified significant accounts and disclosures.

When identifying components at which audit procedures needed to be performed to respond to the identified risks of material

misstatement of the Group financial statements, we considered our understanding of the Group and its business environment,

thepotential impact of climate change, the applicable financial framework, the Group’s system of internal control at the entity level,

the existence of centralised processes, applications and any relevant internal audit results.

We determined that centralised audit procedures can be performed on all components in the following audit areas goodwill,

elimination of intercompany balances and transactions during the year, dividends and distributable reserve testing, and

consolidation journals.

We then identified five components as individually relevant to the Group due to: (i) relevant events and conditions underlying the

identified risks of material misstatement of the Group financial statements being associated with the reporting components or

(ii)apervasive risks of material misstatement of the Group financial statements or (iii) a significant risk or an area of higher assessed

risk of material misstatement of the Group financial statements being associated with the components. Additionally, we assessed

afurther four components of the Group as individually relevant due to materiality or financial size of the component relative

totheGroup.

For all nine of these individually relevant components, we identified the significant accounts where audit procedures needed to be

performed at these components by applying professional judgement, having considered the Group significant accounts on which

centralised procedures will be performed, the reasons for identifying the financial reporting component as an individually relevant

component and the size of the component’s account balance relative to the Group significant financial statement account balance.

We then considered whether the remaining Group significant account balances not yet subject to audit procedures, in aggregate,

could give rise to a risk of material misstatement of the Group financial statements. We selected three components of the Group

toinclude in our audit scope to address these risks.

Having identified the components for which work will be performed, we determined the scope to assign to each component.

Of the 12 components selected, we designed and performed audit procedures on the entire financial information of five components

(“full scope components”). For four components, we designed and performed audit procedures on specific significant financial

statement account balances or disclosures of the financial information of the component (“specific scope components”). For the

remaining three components, we performed specified audit procedures to obtain evidence for one or more relevant assertions.

Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of

ourreport.

Independent Auditor’s Report to the members of Renishawplc continued

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Involvement with component teams

In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the

components by us, as the Group audit engagement team, or by component auditors operating under our instruction.

The primary audit team continued to follow a programme of planned visits that has been designed to ensure that the Senior Statutory

Auditor or her delegate visits key locations on a rotational basis. During the current year’s audit cycle, visits were undertaken by the

primary audit team to the component teams in China, Hong Kong, Japan, India and Ireland. These visits involved discussing the

audit approach with the component team and any issues arising from their work, meeting with local management, attending

planning and closing meetings and reviewing relevant audit working papers on risk areas. The primary audit team interacted

regularly with the component teams where appropriate during various stages of the audit, reviewed relevant working papers and

were responsible for the scope and direction of the audit process. Where relevant, the section on key audit matters details the level

of involvement we had with component auditors to enable us to determine that sufficient audit evidence had been obtained as

abasis for our opinion on the Group as a whole.

This, together with the additional procedures performed at Group level, gave us appropriate evidence for our opinion on the Group

financial statements.

Climate change

Stakeholders are increasingly interested in how climate change will impact Renishaw plc. The Group has determined that the

mostsignificant future impacts from climate change on its operations will be from extreme weather events, increasing competitive

pressures for more energy and resource efficient products, and the growing adoption of additive manufacturing and other

technologies supporting decarbonisation and electrification. These are explained on pages 49 to 55 in the required Climate-related

Financial Disclosures statement and on page 26 in the Risk management section, including principal risks and uncertainties.

TheGroup has also explained its climate commitments on pages 37 to 42. All of these disclosures form part of the “Other information,”

rather than the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of

considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the course of the

audit or otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.

In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any

consequential material impact on its financial statements.

Note 1 of the financial statements explains how management reflected the impact of climate change in the financial statements

including how this aligns with their commitment to the aspirations of the Paris Agreement to achieve net zero emissions by 2050.

TheGroup has concluded that climate change did not have a material effect on the accounting judgements and estimates, nor on

the carrying value of assets and liabilities for the year ended 30 June 2026 but recognises that climate change may pose a greater

risk to the Group over time.

Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s

assessment of the impact of climate risk, physical and transition, their climate commitments and the effects of material climate

risksdisclosed on pages 37 to 42. We also evaluated management’s assessment of the impact of climate change on the significant

judgements and estimates disclosed in Note 1. This assessment considered whether the impact of climate change has been

appropriately reflected in asset values, including goodwill, capitalised development costs, and deferred tax assets, where these

aresensitive to future cash flows, as well as in inventories, right-of-use assets, and the useful economic lives and residual values

ofproperty, plant and equipment, in accordance with the UK-adopted International Accounting Standards. As part of this evaluation,

we performed our own risk assessment, supported by our climate change internal specialists, to determine the risks of material

misstatement in the financial statements from climate change which needed to be considered in our audit.

We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and

associated disclosures. Where considerations of climate change were relevant to our assessment of going concern, these are

described above.

Based on our work we have not identified the impact of climate change on the financial statements to be a key audit matter or to

impact a key audit matter.

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial

statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to

fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of

resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit

of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.

Risk

Revenue recognition – the risk of management override through inappropriate manual journals to revenue

(2026: £815.8 million, 2025: £713.0 million)

Refer to the Accounting policies (page 148); and Note 2 of the Consolidated Financial Statements (page 148)

As revenue is a key performance indicator for external communication and an input into management’s earnings considerations, there

isan incentive for management to manipulate the revenue recognised through manual journals posted throughout the year, to improve

financial performance.

We consider that the vast majority of the Group’s revenue transactions are non-complex by nature, with revenue recognised at a point

intime with no significant judgement required to be exercised by management.

The risk level is consistent with prior year.

Our response to the risk

We obtained an understanding of the processes and assessed the design and implementation of key controls for each of the material

revenue streams.

To test the appropriateness of revenue recognition throughout the period, we performed the following audit procedures:

— For components which together contributed 80% of total Group revenue, we used data analytics on all in scope components to

analyse all of the revenue transactions recorded in the year at those components. We also tested the correlation between revenue,

trade receivables and cash and performing tests of detail over non-correlated transactions.

— For one in-scope component contributing approximately 8% of Group revenue, where we did not use data analytics, we performed

substantive testing by selecting samples of revenue transactions recorded throughout the year and agreeing them to supporting

documentation and cash receipts, thereby assessing whether the relevant revenue recognition criteria had been met.

— Verified that cash receipts that correlate to trade receivables are recorded accurately, and relate to revenue, through testing a sample

of cash journal entries to cash received during the period and testing a sample of trade receivable balances at year end to debtor

confirmations or cash received post year end or evidence of delivery of goods to the customer.

— For all in scope components, we obtained and reviewed breakdowns of all manual journals and for all material revenue journals and

asample of non-material revenue journals we agreed the journal entries to underlying documentation to verify the appropriateness

ofthe revenue being recognised.

— Assessed for evidence of management bias by testing all material manual journals either side of the year end and agreeing journal

entries to appropriate supporting evidence.

— For in scope components, we performed analytical procedures to compare revenue recognised with our expectations, management’s

forecasts and, where possible, external market data.

— Used data analytics to identify potential instances of management override, by performing searches for:

i. manual journals based on the transaction type

ii. journals recorded outside of normal working hours

iii. journals posted by inappropriate individuals

These journals were then agreed to underlying supporting documentation and business rationale, selecting those journals based

onrisk and materiality considerations.

Revenue at the in scope components where these procedures were performed represents 88% of the total revenue balance.

In addressing this key audit matter, audit procedures were performed by a combination of the Primary Team and each of the component

audit teams under our supervision.

Key observations communicated to the Audit Committee

Based on the procedures performed, revenue recognised in the period is appropriate. Our procedures performed did not identify any

unsupported manual adjustments to revenue nor any unexplained anomalies from our revenue analytics.

Our procedures did not identify instances of inappropriate management override across the Group.

Independent Auditor’s Report to the members of Renishawplc continued

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Valuation of the defined benefit pension liability (2026: £166.0 million, 2025: £151.3 million)

Refer to the Audit Committee Report (page 86); Accounting policy (page 166); and Note 23 of the Consolidated Financial Statements

(page 166)

There is an increased risk of material misstatement relating to the valuation of the Group’s UK, Ireland and Germany defined benefit

pension obligations due to the size and nature of the schemes, the level of judgement involved in estimating the key assumptions

tocalculate the liability and the fact that relatively small movements in these assumptions can result in a material impact to the

financialstatements.

At the time of the buy-in transaction for the UK scheme, a drafting error was identified in the 2015 trust deed relating to the Defined

Contribution (DC) underpin, which requires further evaluation to determine whether it affects the valuation of defined benefit liabilities

inthe current our prior years.

Our response to the risk

We obtained an understanding of the processes and assessed the design and implementation of key controls for estimating the defined

benefit pension liability.

To test the appropriateness of the defined benefit pension liability, our audit procedures included:

— Evaluating the competence and objectivity of management’s external actuarial specialists.

— Assessing the completeness and accuracy of the member data used by the actuaries to estimate the scheme liabilities, by testing

theclerical accuracy of the member data schedules, checking changes to the participants in the year and performing an analytical

review of the year-on-year movements in the data.

— Involving EY actuarial specialists as part of our audit team to:

i independently estimate an acceptable range for each of the significant assumptions used in estimating the UK, Irish and German

scheme liabilities, which included the discount rate; rate of inflation; and mortality assumptions. We compared each of the

significant assumptions used by management’s actuarial specialist to our independent acceptable range.

ii Perform a roll forward of the UK, Ireland and Germany scheme liabilities from 30 June 2025 to 30 June 2026 and independently

reconcile the output to the amounts calculated by management’s external actuarial specialist.

— Evaluating the legal advice obtained by management in relation to the drafting error in the trust deed related to the defined

contribution underpin. We challenged management’s assessment regarding the potential impact, if any, of this matter in relation to the

value of the pension liability recorded in the financial statements. This included obtaining legal confirmation directly from

management’s specialist.

— We evaluated the completeness of the Group’s defined benefit pension liabilities through a review of employee benefit arrangements

across the Group, challenging management’s assessment of scheme classifications and assessing whether any additional

obligations required recognition under IAS 19.

— Evaluating whether the disclosures in the Group financial statements are in accordance with those required by IAS 19.

We performed centralised procedures, which covered 93% of the defined benefit pension liability balance. In addressing this key audit

matter, audit procedures were performed by the Primary Team alongside EY specialists from the UK and Germany.

Key observations communicated to the Audit Committee

Our audit procedures did not identify evidence of material misstatement regarding the valuation of the defined benefit pension liability.

We concluded that the disclosures provided in Note 23 to the Group financial statements are in accordance with those required by IAS 19,

Employee Benefits.

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Completeness of provision for uncertain tax positions and related tax disclosures

Refer to the Audit Committee Report (page 86); Accounting policy (page 152); and Note 7 of the Consolidated Financial Statements

(page152)

The group has recognised an uncertain tax position provision of £7.1m (FY2025: £9.2m) and associated interest of £5.8m (FY2025: £4.9m)

relating to specific legacy arrangements.

The Group is subject to a range of tax legislation that can vary by jurisdiction and tax compliance for global businesses is

increasinglycomplex.

There is judgement in relation to (i) whether a provision is required for an uncertain tax position; (ii) the quantum of the associated

provision; and (iii) whether the provision and related interest should be disclosed as “adjusting items”.

The risk level is consistent with prior year.

Our response to the risk

In responding to the identified key audit matter, we completed the following audit procedures:

— Obtained management’s assessment paper regarding potential uncertain tax positions and reviewed the underlying evidence

toconclude on management’s key judgements set out in their paper, including advice received from management’s specialist

— Reviewed correspondence between the Group and relevant tax authorities in relation to open tax matters

— Involved our tax specialists to perform a review of the specialist advice obtained by management alongside a review of underlying

documents associated with the uncertain tax positions

— Assessed the level of provision recorded for uncertain tax positions in light of third-party evidence obtained and the views of our tax

specialists who developed their own point estimates

— Read the related disclosures in the Annual Report and Accounts and evaluated the adequacy of these in light of whether it was

appropriate for these matters to be included as ‘adjusting items’ and whether the associated disclosure was clear.

In addressing this key audit matter, audit procedures were performed by a mix of the Primary Team, UK and overseas tax specialists and

overseas component teams under our supervision.

Key observations communicated to the Audit Committee

Based on our procedures, we concluded that the provisions for uncertain tax positions and the disclosures in the Annual Report and

Accounts for the year ended 30 June 2026 are appropriate.

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Our application of materiality

We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the

audit and in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the

economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our

audit procedures.

We determined materiality for the Group to be £8.4 million (2025: £6.4 million), which is 5% (2025: 5%) of Adjusted profit before tax.

We believe that Adjusted profit before tax provides us with the metric which is used most prevalently by Group management in their

internal and external reporting and is the most relevant performance measure to the stakeholders of the Group.

We determined materiality for the Parent company to be £9.1 million (2025: £8.4 million), which is 1% (2025: 1%) of Equity.

During the course of our audit, we reassessed initial materiality to reflect actual results being higher than the forecast used to

calculate planning materiality and performed our testing at this revised level.

Performance materiality

The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level

the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was

that performance materiality was 75% (2025: 75%) of our planning materiality, namely £6.3 million (2025: £4.7 million). We have set

performance materiality at this percentage due to our expectation of misstatements being low.

Audit procedures were undertaken at component locations for the purpose of responding to the assessed risks of material

misstatement ofthe Group financial statements. The performance materiality set for each component is based on the relative

scaleand risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component. In the

current year, the range of performance materiality allocated to components was £0.4m to £3.9m (2025: £0.3 million to £3.2 million).

Reporting threshold

An amount below which identified misstatements are considered as being clearly trivial.

We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £0.4 million

(2025:£0.3 million), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view,

warrantedreporting on qualitative grounds.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light

ofother relevant qualitative considerations in forming our opinion.

Starting basis

— Statutory profit before tax – £150.0m

Adjustments

— Adjust for non-recurring items – £18.0m, comprising:

• Cost reduction programme – £14.9m

• Loss of office – £2.0m

• Closure of drug delivery business – £0.7m

• Interest payable on historical tax matters – £0.4m

Materiality

— Totals £168.0m adjusted profit before tax

— Materiality of £8.4m (5% of materiality basis)

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Other information

The other information comprises the information included in the Annual Report, including the Strategic report set out on pages 2 to 56,

the Governance report set out on pages 57 to 125 and Shareholders’ information set out on pages 198 to 200, other than the

financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the

Annual Report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated

inthis report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated.

Ifwe identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise

to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there

is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the

Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

— the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are

prepared is consistent with the financial statements; and

— the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent company and its environment obtained in the course

ofthe audit, we have not identified material misstatements in the Strategic report or the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report

toyouif, in our opinion:

— adequate accounting records have not been kept by the Parent company, or returns adequate for our audit have not been

received from branches not visited by us; or

— the Parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement

with the accounting records and returns; or

— certain disclosures of Directors’ remuneration specified by law are not made; or

— we have not received all the information and explanations we require for our audit

Corporate Governance Statement

We have reviewed the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate

Governance Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Code

specified for our review by the UK Listing Rules.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate

Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:

— Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material

uncertainties identified set out on page 76;

— Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period

isappropriate 76;

— Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets

itsliabilities 76;

— Directors’ statement on fair, balanced and understandable set out on page 125;

— Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 75;

— The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems set

out on page 75; and

— The section describing the work of the Audit Committee set out on page 84.

Independent Auditor’s Report to the members of Renishawplc continued

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Responsibilities of directors

As explained more fully in the Directors’ responsibilities statement set out on page 103, the Directors are responsible for the preparation of

the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine

isnecessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group and Parent company’s ability to continue as

agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the

Directors either intend to liquidate the Group or the Parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is

ahighlevel of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud

is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery

or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities,

including fraud is detailed below.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the

Company and management.

— We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the

most significant are those that relate to the reporting framework (UK adopted international accounting standards, United Kingdom

Generally Accepted Accounting Practice, the Companies Act 2006, the UK Corporate Governance Code) and the relevant tax

compliance regulations in the UK and overseas jurisdictions in which the Group operates. In addition, we concluded that there

are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the

financial statements being the Listing Rules of the London Stock Exchange, the Bribery Act 2010, UK Economic Crime and

Corporate Transparency Act including the Failure to Prevent Fraud Legislation, Occupational Health and Safety Regulations,

General Data Protection Regulation and export controls as well as, for the Group’s overseas components, thenon-UK equivalent

of these legislative frameworks.

— We understood how Renishaw plc is complying with those frameworks by reading internal policies and codes of conduct and

assessing the entity level control environment, including the level of oversight of those charged with governance. We made

enquiries of management, internal audit, the Group’s legal counsel and those responsible for legal and compliance procedures.

We corroborated our enquiries through our review of board minutes and papers provided to the Audit Committee and noted that

there was no contradictory evidence.

— We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur

byconsidering the programmes and controls that the Group has established to address risks identified by the entity, or that

otherwise prevent, deter and detect fraud; how senior management monitor those programs and controls, evaluating conditions

in the context of incentive and/or pressure to commit fraud, considering the opportunity to commit fraud and the potential

rationalisation of the fraudulent act, and by making enquiries of senior management, including the Chief Financial Officer, Interim

Group Finance Director, GroupFinancial Controller, Group Internal Audit Manager, Group Head of Internal Controls, Regional

Presidents, Group Company Secretary & General Counsel and Chair of the Audit Committee. We planned our audit to identify

risks of management override, tested higher risk journal entries and performedaudit procedures to address the potential for

management bias, particularly over areas involving significant estimation. Further discussion of our approach to address the

identified risk of management override, related to revenue recognition, is set out in the key audit matters section of our report.

— Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations.

Ourprocedures involved making enquires of management, including the Group’s internal and external legal counsel, internal

audit, internal controls and component management, of known instances of non-compliance or suspected non-compliance with

laws and regulations; attendance at audit committee meetings; review of committee and board meeting minutes, including board

meeting minutes for full scope components to identify any known or potential non-compliance with laws and regulations; journal

entry testing, with a focus on journals meeting our defined risk criteria based on our understanding of the business; and review of

the volume and nature of matters reported through the whistleblowing hotline during the year and post year end period. We also

completed procedures to conclude on the compliance of significant disclosures in the Annual Report with the requirements of

the relevant accounting standards, UK legislation and the UK Corporate Governance Code. We communicated regularly with the

full scope and specific scope component teams and attended key meetings with the component audit teams and local

management in order to identify and communicate any instances of non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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FINANCIAL STATEMENTS

Other matters we are required to address

— Following the recommendation from the Audit Committee we were appointed by the Parent company on 13 October 2016 to audit

the financial statements for the year ending 30 June 2017 and subsequent financial periods.

The period of total uninterrupted engagement including previous renewals and reappointments is ten years, covering the years

ending 30 June 2017 to 30 June 2026.

— The audit opinion is consistent with the additional report to the Audit Committee.

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to

stateto them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for

theopinions we have formed.

Helen McLeod-Jones (Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

Bristol

22 September 2026

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Introduction

The Directors are responsible for preparing the Annual Report and the Group and Company financial statements in accordance with

applicable law and regulations. The full statement of Directors’ responsibilities can be found on page 125.

The notes (forming part of the financial statements) provide additional information required by statute, accounting standards or other

regulations to assist in a more detailed understanding of the primary financial statements.

Financial statements contents

Consolidated financial statements

Primary statements

140 Consolidated income statement

141 Consolidated statement of comprehensive income and expense

142 Consolidated balance sheet

143 Consolidated statement of changes in equity

144 Consolidated statement of cash flow

Notes (forming part of the financial statements)

145 1. Accounting policies

148 2. Revenue disaggregation and segmental analysis

150 3. Employee costs

151 4. Cost of sales

151 5. Financial income and expenses

152 6. Profit before tax

152 7. Ta xation

155 8. Earnings per share

155 9. Property, plant and equipment

156 10. Right-of-use assets

157 11. Investment properties

158 12. Intangible assets

161 13. Investments in joint ventures

162 14. Leases (as lessor)

162 15. Cash and cash equivalents and bank deposits

163 16. Inventories

163 17. Provisions

164 18. Contract liabilities

164 19. Other payables

164 20. Borrowings

165 21. Leases (as lessee)

166 22. Changes in liabilities arising from financing activities

166 23. Employee benefits

170 24. Share-based payments

171 25. Financial instruments

177 26. Share capital and reserves

178 27. Capital commitments

179 28. Related parties

180 29. Alternative performance measures

184 30. Business combinations

Company financial statements

Primary statements

185 Company balance sheet

186 Company statement of changes in equity

Notes to the Company financial statements

187 C.31. Accounting policies

189 C.32. Property, plant and equipment

190 C.33. Right-of-use assets

190 C.34. Investment properties

191 C.35. Long-term loans to Group undertakings

191 C.36. Intangible assets

191 C.37. Investments in subsidiaries

191 C.38. Investments in joint ventures

192 C.39. Deferred tax

192 C.40. Inventories

192 C.41. Trade receivables

192 C.42. Other receivables

193 C.43. Provisions

193 C.44. Leases (as lessee)

193 C.45. Other payables

193 C.46. Employee benefits

194 C.47. Share capital

194 C.48. Related parties

194 C.49. Capital commitments

195 C.50. Subsidiary undertakings

197 C.51. Joint ventures

197 C.52. Ultimate parent undertaking

Financial statements

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FINANCIAL STATEMENTS

		Adjusted	Adjusting	Statutory	Adjusted	Adjusting	Statutory
		total	items	total	total	items	total
		2026	2026	2026	2025	2025	2025
from continuing operations	notes	£’000	£’000	£’000	£’000	£’000	£’000
Revenue	2	8 15 , 7 7 9	–	8 15 , 7 7 9	713 , 0 4 4	–	713 , 0 4 4
Cost of sales	4	(4 3 0 , 4 2 3)	(9,63 5)	(440,058)	(3 7 9, 6 5 0)	(4 , 3 7 9)	(384, 029)
Gross profit		385,356	(9,6 35)	3 75 ,7 21	333,394	(4 , 3 7 9)	3 2 9 , 015
Distribution costs		(15 6 ,13 5)	(3, 3 5 0)	(1 59, 48 5)	(14 4 , 0 3 1)	–	(1 4 4 , 0 3 1)
Administrative expenses		(76 ,3 25)	(4, 5 8 6)	(8 0 , 911)	( 7 7, 0 9 9)	–	(7 7, 0 9 9)
Operating profit		152,896	(17, 5 7 1)	13 5 , 3 2 5	112 , 2 6 4	(4 , 3 7 9)	1 0 7, 8 8 5
Financial income	5	13 ,1 7 9	2 ,45 0	15 , 6 2 9	16 , 517	–	16 , 51 7
Financial expenses	5	(2 ,1 6 1)	(2 , 8 69)	(5,030)	(5, 0 8 8)	(4 , 8 5 2)	(9 , 9 4 0)
Share of profits of joint ventures	13	4,040	–	4,04 0	3,5 38	–	3,53 8
Profit before tax		1 67 ,954	(17, 9 9 0)	14 9 , 9 6 4	1 2 7, 2 3 1	(9, 23 1)	1 1 8, 000
Income tax expense	7	(3 7, 2 6 1)	6, 257	(3 1, 0 0 4)	(27 ,01 0)	(7, 2 3 3)	(3 4, 24 3)
Profit for the year		130,693	(11,7 3 3)	118 ,9 6 0	10 0 , 2 21	(16 ,4 6 4)	8 3 ,75 7
Profit attributable to:
Equity shareholders of the parent company				118 , 9 6 0			8 3 ,7 5 7
Non-controlling interest	26			–			–
Profit for the year				118 , 9 6 0			8 3 ,7 5 7
		pence	pence	pence	pence	pence	pence
Dividend per share arising in respect of the year	26			82.0			7 8 .1
Dividend per share paid in the year	26			7 8 .1			76 . 2
Earnings per share (basic and diluted)	8	17 9 . 5	(16 . 0)	16 3 . 5	13 7. 8	(2 2 . 6)	115 . 2

See Note 29 Alternative performance measures for more details on Adjusting items.

Dividend per share arising in respect of the year excludes the special dividend of 70.0p per share.

Consolidated income statement

for the year ended 30 June 2026

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CONTENTS

		Adjusted	Adjusting	Statutory	Adjusted	Adjusting	Statutory
		total	items	total	total	items	total
		2026	2026	2026	2025	2025	2025
	notes	£’000	£’000	£’000	£’000	£’000	£’000
Profit for the year		130,693	(11,7 3 3)	118 ,9 6 0	10 0 , 2 21	(16 ,4 6 4)	8 3 ,75 7
Other items recognised directly in equity:
Items that will not be reclassified to the Consolidated income statement:
Remeasurement of defined benefit pension scheme
assets/liabilities/reimbursement right	23	7, 6 9 2	–	7, 6 9 2	2, 777	–	2, 777
Deferred tax on remeasurement of defined benefit
pension scheme assets/liabilities/reimbursement right		(1, 6 15)	–	(1, 6 15)	(3 74)	–	(3 74)
Total for items that will not be reclassified		6,077	–	6,077	2,4 0 3	–	2,4 0 3
Items that may be reclassified to the Consolidated income statement:
Exchange differences in translation of overseasoperations	26	(4 7 3)	–	(47 3)	(6 , 2 9 5)	–	(6, 2 9 5)
Exchange differences in translation of overseas
jointventure	26	19 0	–	19 0	16 9	–	16 9
Changes in fair value of cash flow hedges	25,26	(12 , 2 0 8)	–	(12 , 2 0 8)	5,80 4	–	5,8 04
Deferred tax on changes in fair value of cashflowhedges	7,26	3,052	–	3,0 52	(1,4 51)	–	(1, 4 51)
Total for items that may be reclassified		(9,4 3 9)	–	(9, 4 3 9)	(1, 7 7 3)	–	(1, 7 7 3)
Total other comprehensive income and expense, net of tax		(3, 3 6 2)	–	(3 , 3 62)	630	–	630
Total comprehensive income and expense for theyear		1 2 7, 3 3 1	(11, 7 3 3)	115 , 5 9 8	1 0 0, 8 51	(1 6 ,4 6 4)	84 ,3 87
Attributable to:
Equity shareholders of the parent company				115 , 5 9 8			8 4, 3 87
Non-controlling interest	26			–			–
Total comprehensive income and expense for theyear				115 , 5 9 8			84, 3 87

Consolidated statement of comprehensive

incomeandexpense

for the year ended 30 June 2026

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

		2026	2025
	notes	£’000	£’000
Non-current assets
Property, plant and equipment	9	3 3 7, 9 4 7	3 3 8, 2 87
Right-of-use assets	10	10 , 9 6 6	12 , 2 18
Investment properties	11	19 , 5 8 3	11, 5 6 6
Intangible assets	12	52 ,2 24	50,550
Investments in joint ventures	13	2 6 ,1 2 5	2 7, 6 9 2
Finance lease receivables	14	10 ,7 6 4	11 , 9 5 0
Employee benefits	23	12 ,12 8	11 , 4 4 3
Reimbursement right	23	14 , 5 6 6	12 , 9 0 9
Deferred tax assets	7	2 2, 879	22,4 32
Derivatives	25	1, 6 5 2	7, 8 7 8
Total non-current assets		508,834	5 0 6,925
Current assets
Inventories	16	18 1,74 3	15 9 ,4 6 5
Trade receivables	25	16 1, 5 5 4	12 8 , 4 6 4
Finance lease receivables	14	7, 1 8 7	5 ,1 9 5
Current tax		18 , 3 2 8	6,4 5 3
Other receivables	25	49,9 52	4 0 ,7 3 2
Derivatives	25	7,1 5 0	14 , 3 4 5
Bank deposits	15, 25	14 2 , 6 4 9	1 86,226
Cash and cash equivalents	15, 25	14 8 , 3 0 1	87,420
Total current assets		71 6,864	628,30 0
Current liabilities
Trade payables	25	38, 238	25,94 3
Contract liabilities	18	2 6 , 3 11	14,669
Current tax		11 , 6 9 2	11 , 3 0 3
Provisions	17	9, 58 8	8, 978
Derivatives	25	1,073	15 0
Lease liabilities	21	4 , 315	3,992
Amounts payable to joint venture	13	15 , 9 4 8	14 , 5 3 0
Borrowings	20	670	76 4
Other payables	19	68, 000	5 7,1 3 2
Total current liabilities		17 5 , 8 3 5	1 3 7, 4 6 1
Net current assets		54 1, 029	49 0, 83 9
Non-current liabilities
Lease liabilities	21	7, 2 0 3	8 ,7 6 9
Borrowings	20	1, 316	2 ,12 0
Employee benefits	23	20,201	2 1 ,1 3 1
Deferred tax liabilities	7	36 ,971	3 8 ,7 8 4
Derivatives	25	40	1, 0 9 6
Total non-current liabilities		65 ,7 31	71, 9 0 0
Total assets less total liabilities		9 8 4 ,13 2	9 25,8 64
Equity
Share capital	26	14 , 5 5 8	14 , 5 5 8
Share premium		42	42
Own shares held	26	(1, 0 9 4)	(2 ,1 4 0)
Currency translation reserve	26	(3 ,9 2 9)	(3 ,6 4 6)
Cash flow hedging reserve	26	6 ,10 8	15 , 2 6 4
Retained earnings		969 ,365	9 0 1 ,17 0
Other reserve	26	(3 4 1)	1 ,1 9 3
Equity attributable to the shareholders of the parent company		9 8 4 ,70 9	926,441
Non-controlling interest	26	(57 7)	(57 7)
Total equity		9 8 4 ,13 2	9 25,8 64

These financial statements were approved by the Board of Directors on 22 September 2026 and were signed on its behalf by:

Will Lee John Shipsey

Chief Executive Officer Chief Financial Officer

Consolidated balance sheet

at 30 June 2026

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CONTENTS

			Own	Currency	Cash flow			Non-
	Share	Share	shares	translation	hedging	Retained	Other	controlling
	capital	premium	held	reserve	reserve	earnings	reserve	interest	Total
Year ended 30 June 2025	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Balance at 1 July 2024	14, 5 5 8	42	(2 , 9 6 3)	2,48 0	10 , 911	870,4 3 4	1, 3 8 0	(57 7)	896,265
Profit for the year	–	–	–	–	–	8 3 ,7 57	–	–	8 3 ,75 7
Other comprehensive income andexpense
(net of tax)
Remeasurement of defined benefit pension
schemeassets/liabilities/reimbursement right	–	–	–	–	–	2,4 0 3	–	–	2,4 0 3
Foreign exchange translation differences	–	–	–	(6 , 2 9 5)	–	–	–	–	(6 , 2 9 5)
Foreign exchange related to joint venture	–	–	–	16 9	–	–	–	–	16 9
Changes in fair value of cash flow hedges	–	–	–	–	4,3 5 3	–	–	–	4,35 3
Total other comprehensive income
and expense	–	–	–	(6,126)	4,3 5 3	2,4 03	–	–	630
Total comprehensive income
and expense	–	–	–	(6,126)	4,3 5 3	8 6 ,1 6 0	–	–	8 4,3 87
Share-based payments charge	–	–	–	–	–	–	79 0	–	79 0
Distribution of own shares	–	–	97 7	–	–	–	(97 7)	–	–
Purchase of own shares	–	–	(15 4)	–	–	–	–	–	(15 4)
Dividends paid	–	–	–	–	–	(5 5 , 4 2 4)	–	–	(5 5 , 4 2 4)
Balance at 30 June 2025	14 , 5 5 8	42	(2 ,14 0)	(3,646)	15, 2 6 4	9 01,17 0	1,1 9 3	(57 7)	925,864
Year ended 30 June 2026
Profit for the year	–	–	–	–	–	118 , 9 6 0	–	–	11 8 , 9 6 0
Other comprehensive income andexpense
(net of tax)
Remeasurement of defined benefit pension
schemeassets/liabilities/reimbursement right	–	–	–	–	–	6 ,07 7	–	–	6, 077
Foreign exchange translation differences	–	–	–	(47 3)	–	–	–	–	(4 7 3)
Foreign exchange related to joint venture	–	–	–	19 0	–	–	–	–	19 0
Changes in fair value of cash flow hedges	–	–	–	–	(9, 156)	–	–	–	(9, 156)
Total other comprehensive income
andexpense	–	–	–	(2 8 3)	(9,156)	6 ,07 7	–	–	(3,362)
Total comprehensive income
and expense	–	–	–	(2 8 3)	(9,156)	12 5 , 0 37	–	–	115 , 5 9 8
Share-based payments charge	–	–	–	–	–	–	4 91	–	4 91
Distribution of own shares	–	–	2,02 5	–	–	–	(2, 0 2 5)	–	–
Purchase of own shares	–	–	(97 9)	–	–	–	–	–	(97 9)
Dividends paid	–	–	–	–	–	(5 6 , 8 4 2)	–	–	(56 , 8 4 2)
Balance at 30 June 2026	14 , 5 5 8	42	(1, 0 9 4)	(3, 92 9)	6 ,1 0 8	969,365	(3 41)	(57 7)	9 8 4 ,1 3 2

Consolidated statement of changes in equity

for the year ended 30 June 2026

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CONTENTS

FINANCIAL STATEMENTS

		2026	2025
	notes	£’000	£’000
Cash flows from operating activities
Profit for the year		118 , 9 6 0	8 3 ,7 5 7
Adjustments for:
Depreciation and impairment of property, plant and equipment, right-of-use assets, andinvestment properties	9,10,11	3 3 ,7 19	2 9,0 57
Loss/(profit) on sale of property, plant and equipment	9	10 7	(1 ,083)
Amortisation and impairment of intangible assets	12	8,65 3	6,68 9
Loss on disposal of intangible assets	12	1, 0 17	–
Share of profits from joint ventures	13	(4 , 0 4 0)	(3 , 5 3 8)
Defined benefit pension schemes service and administrative costs	23	2,4 38	1 ,833
Financial income	5	(15 , 6 2 9)	(1 6 , 517)
Financial expenses	5	5,030	9,9 4 0
Fair value gain on acquisition of subsidiary	30	(35 9)	–
Share-based payment expense	24	4 91	79 0
Tax expense	7	31, 0 0 4	3 4, 24 3
		62 , 4 31	61, 414
(Increase)/decrease in inventories		(2 2 , 2 3 1)	2,4 6 3
Increase in trade, finance lease and other receivables		(47 ,709)	(11, 0 2 5)
Increase in trade and other payables		38,548	16 , 52 5
Increase in provisions		71	1 ,1 2 9
		(3 1, 3 2 1)	9, 0 9 4
Defined benefit pension scheme contributions	23	(2 ,8 5 9)	(16 2)
Income taxes paid		(3 6 , 6 8 1)	(6 , 2 07)
Cash flows from operating activities		110 , 5 3 0	1 4 7, 8 9 6
Investing activities
Purchase of property, plant and equipment, and investment properties	9,11	(3 8 , 3 4 2)	(4 6 , 2 7 3)
Sale of property, plant and equipment		3,885	4 ,8 87
Development costs capitalised	12	(9,896)	(9, 999)
Purchase of other intangibles	12	(5 0)	(28 6)
Decrease/(increase) in bank deposits	15	43 ,57 7	(9 0 , 6 8 4)
Interest received	5	10 , 7 7 3	12 , 2 16
Acquisition of a subsidiary, net of cash acquired	30	1, 9 6 0	–
Dividends received from joint ventures	13	9 57	1, 5 0 0
Cash flows from investing activities		1 2,864	(12 8, 6 3 9)
Financing activities
Repayment of borrowings	20	(7 3 1)	(7 9 4)
Amounts received as deposit from joint venture	13	1,3 04	5,98 3
Interest paid	5	(938)	(1,140)
Repayment of principal of lease liabilities	22	(4 , 9 6 0)	(4 , 2 8 4)
Own shares purchased	26	(9 79)	(1 5 4)
Dividends paid	26	(56 , 8 4 2)	(5 5 , 4 24)
Cash flows from financing activities		(6 3,14 6)	(5 5, 813)
Net increase/(decrease) in cash and cash equivalents		60, 248	(3 6 , 5 5 6)
Cash and cash equivalents at the beginning of the year		87 ,420	12 2 , 2 9 3
Effect of exchange rate fluctuations on cash held		633	1, 6 8 3
Cash and cash equivalents at the end of the year	15	14 8 , 3 0 1	87,420

Cash and cash equivalents and bank deposits at the end of the year were £291.0m (2025: £273.6m). See Note 15 for more details.

Consolidated statement of cash flow

for the year ended 30 June 2026

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CONTENTS

1. Accounting policies

This section sets out our principal accounting policies that relate to the financial statements as a whole, along with the

critical accounting judgements and estimates that management has identified as having a potentially material impact on

the Group’s consolidated financial statements. Where an accounting policy is applicable to a specific note in the financial

statements, the policy is described within that note.

Basis of preparation

Renishaw plc (the Company) is a company incorporated in England and Wales. The Group financial statements consolidate those

of the Company and its subsidiaries (together referred to as the Group, and ‘we’) and equity account the Group’s interest in joint

ventures. The parent company financial statements present information about the Company as a separate entity and not about

the Group.

The Group financial statements have been prepared and approved by the Directors in accordance with UK-adopted International

Accounting Standards (IAS). The parent company financial statements have been prepared in accordance with Financial Reporting

Standard 101 ‘Reduced Disclosure Framework’.

The consolidated financial statements are presented in Sterling, which is the Company’s functional currency and the Group’s

presentational currency, and all values are rounded to the nearest thousand (£’000).

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Group

financial statements. Page 147 sets out the critical estimates (that have a significant risk of material adjustment in the next year) and

key judgements (that have a significant effect on the financial statements) made by the Directors in applying the accounting policies.

Basis of consolidation

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns

from its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing control,

the Group takes into consideration potential voting rights that are exercisable. The acquisition date is the date on which control is

transferred to the acquirer. The financial statements of subsidiaries are included in the consolidated financial statements from the

date that control commences until the date that control ceases. Losses applicable to the non-controlling interests in a subsidiary

are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

Joint ventures are accounted for using the equity method (equity-accounted investees) and are initially recognised at cost.

The Group’s investments include goodwill identified on acquisition, net of any accumulated impairment losses.

The consolidated financial statements include the Group’s share of the total comprehensive income and equity movements of equity

accounted investees, from the date that significant influence commences until the date that significant influence ceases. When the

Group’s share of losses exceeds its interest in an equity accounted investee, the Group’s carrying amount is reduced to £nil and

recognition of further losses is discontinued (except to the extent that the Group has incurred legal obligations or made payments

on behalf of an investee).

Intragroup balances and transactions, and any unrealised income and expenses arising from intragroup transactions, are eliminated

on consolidation. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment

to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only

to the extent that there is no evidence of impairment.

Foreign currencies

On consolidation, overseas subsidiaries’ results are translated into Sterling at weighted average exchange rates for the year

by translating each overseas subsidiary’s monthly results at exchange rates applicable to the respective months. Assets and

liabilities denominated in foreign currencies at the balance sheet date are translated into Sterling at the foreign exchange rates

prevailing at that date. Differences on exchange resulting from the translation of overseas assets and liabilities are recognised

in Other comprehensive income and expense and are accumulated in equity.

Monetary assets and liabilities denominated in foreign currencies are reported at the rates prevailing at the time, with any gain or

loss arising from subsequent exchange rate movements being included as an exchange gain or loss in the Consolidated income

statement. Foreign currency differences arising from transactions are recognised in the Consolidated income statement.

Notes (forming part of the consolidated financial statements)

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Notes continued

1. Accounting policies continued

New, revised or changes to existing accounting standards

The following accounting standards and amendments became effective as at 1 January 2025 and has been adopted in the

preparation of these financial statements, with effect from 1 July 2025:

— amendments to IAS 21, Lack of exchangeability.

This has not had a material effect on these financial statements.

At the date of these financial statements, the following standards and amendments that are potentially relevant to the Group,

and which have not been applied in these financial statements, were in issue but not yet effective:

— IFRS 18 Presentation and Disclosures in Financial Statements (endorsed by the UK); and

— IFRS 19 Subsidiaries without Public Accountability: Disclosures (not yet endorsed by the UK); and

— amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity; and

— amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments; and

— amendments to IAS 21 – Translation to a Hyperinflationary Presentation Currency; and

— annual improvements to IFRS – Volume 11.

The adoption of these standards and interpretations in future periods is not expected to have a material impact on the financial

statements of the Group.

The Group has applied the temporary exception issued by the International Accounting Standards Board from the accounting

requirements for deferred taxes in IAS 12 arising from the Organisation for Economic Co-operation and Development’s (OECD)

international tax reform. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities

related to Global Minimum Tax income taxes.

Alternative performance measures

The financial statements are prepared in accordance with UK-adopted International Accounting Standards (IAS) and applied in

accordance with the provisions of the Companies Act 2006. In measuring our performance, the financial measures that we use

include those which have been derived from our reported results, to eliminate factors which distort year-on-year comparisons.

These are considered non-GAAP financial measures. We believe this information, along with comparable GAAP measurements,

is useful to stakeholders in providing a basis for measuring our operational performance. The Board uses these financial measures,

along with the most directly comparable GAAP financial measures, in evaluating our performance (see Note 29).

Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate

of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interest in

the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at

fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred

and included in administrative expenses.

The Group determines that it has acquired a business when the acquired set of activities and assets includes an input and

a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered

substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce

with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue

producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability

to continue producing outputs.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and

designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value

and any resulting gain or loss is recognised in the Consolidated income statement.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised

for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the

fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group reassesses whether it has

correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the

amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired

over the aggregate consideration transferred, then the gain is recognised in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment

testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating

units that are expected to benefit from the combination.

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CONTENTS

1. Accounting policies continued

Critical accounting judgements and estimation uncertainties

The preparation of financial statements in conformity with UK-adopted IAS requires management to make judgements, estimates

and assumptions which affect the application of policies and reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable

under the circumstances. The results of this form the basis of making judgements about carrying values of assets and liabilities that

are not readily apparent from other sources. Actual results may therefore differ from these estimates. The estimates and underlying

assumptions are reviewed on an ongoing basis.

The areas of critical accounting judgements and estimation uncertainties that have a significant risk of causing a material adjustment

to the carrying amount of assets and liabilities in the next financial year are summarised below with further details included within

accounting policies as indicated.

Item	Key judgements (J) and estimates (E)	Page
Taxation	J – Whether uncertain tax positions need to be recognised	152
Research and development costs	J – Whether a project meets the criteria for capitalisation	158
Capitalised development costs	E – Estimates of future cash flows for impairment testing	158
Inventories	E – Determination of net realisable value	163
Defined benefit pension schemes	E – Valuation of defined benefit pension schemes’ liabilities	166
Defined benefit pension schemes	J – Whether past service costs need to be recognised	166
Adjusted performance measures	J – Whether items are appropriate to exclude from adjusted measures	180

Climate change

We have considered the potential effect of physical and transitional climate change risks when preparing these consolidated

financial statements and have also considered the effect of our own Net Zero commitments. Our consideration of the potential effect

of climate change on these consolidated financial statements included reviewing:

— discounted cash flow forecasts, used in accounting for goodwill, capitalised development costs, and deferred tax assets;

— useful economic lives and residual values of property, plant and equipment;

— planned use of right-of-use assets; and

— expected demand for inventories.

We also considered the estimated capital expenditure needed in the next five years to deliver our Net Zero plan.

Overall, we do not believe that climate change has a material effect on our accounting judgements and estimates, nor on the

carrying value of assets and liabilities in the consolidated financial statements for the year ended 30 June 2026. We will continue

to review this, and update our accounting and disclosures if the position changes.

Going concern

In preparing these financial statements, the Directors have adopted the going concern basis. The decision to adopt the going

concern basis was made after considering:

— the Group’s strategy and business model, disclosed on pages 7 to 10;

— the Group’s financial resources and strategies, disclosed on pages 21 to 22;

— the Group’s risk management processes and principal risks, disclosed on pages 23 to 32; and

— the process undertaken to review the Group’s viability, including scenario testing, disclosed on page 33.

The financial models for the viability review were based on the pessimistic version of the five-year business plan, but covering

a period to 31 December 2029. For context, revenue in the first year of this pessimistic base scenario is lower than the FY2026

revenue of £815.8m, while costs and other cash outflows still reflect ambitious growth plans. In the going concern assessment,

the Directors reviewed this same version of the business plan but to 31 December 2027, as well as the ‘severe but plausible’

scenarios used in the viability review, again to 31 December 2027. These scenarios reflected a significant reduction in revenue,

a significant increase in costs, and a third scenario incorporating both a reduction to revenue and an increase in costs but to

a lesser degree than the first two scenarios. In each scenario the Group’s cash balances remained positive throughout the period

to 31 December 2027.

The Directors also reviewed a reverse stress test for the period to 31 December 2027, identifying what would need to happen

in this period for the Group to deplete its cash and cash equivalents and bank deposit balances. This identified a trading level

so low that the Directors feel that the events that could trigger this would be remote. The Directors also concluded that the risk of

a one-off cash outflow that would exhaust the Group’s cash and cash equivalents and bank deposits balances in the assessment

period was also remote.

Based on this assessment, incorporating a review of the current position, the scenarios, the principal risks and mitigation, the

Directors have a reasonable expectation that the Group will be able to continue operating and meet its liabilities as they fall due

over the period to 31 December 2027, being the going concern period.

147

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Notes continued

2. Revenue disaggregation and segmental analysis

As previously announced, and disclosed on Page 14, the Group has reorganised into three new segments, which

have replaced the Manufacturing technologies and Analytical instruments and medical devices segments. The new

segments group together product lines with similar end-user markets, which more closely align reporting segment

performance with external market data and demand drivers. Our new reporting segments are Industrial Metrology,

Position Measurement and Specialised Technologies. We also manage our business by geographical region.

The results of these segments and regions are regularly reviewed by the Board to assess performance and allocate

resources, and are presented in this note.

Accounting policy

The Group generates revenue from the sale of goods, capital equipment and services. These can be sold both on their own

and together.

a) Sale of goods, capital equipment and services

The Group’s contracts with customers consist both of contracts with one performance obligation and contracts with multiple

performance obligations.

For contracts with one performance obligation, revenue is measured at the transaction price, which is typically the contract value

except for customers entitled to volume rebates, and recognised at the point in time when control of the product transfers to the

customer. This point in time is typically when the products are made available for collection by the customer, collected by the

shipping agent, or delivered to the customer, depending upon the shipping terms applied to the specific contract.

Contracts with multiple performance obligations typically exist where, in addition to supplying products, we also supply services

such as user training, servicing and maintenance, and installation. Where the installation service is simple, does not include

a significant integration service and could be performed by another party then the installation is accounted for as a separate

performance obligation. Where the contracts include multiple performance obligations, the transaction price is allocated to each

performance obligation based on the relative stand-alone selling prices. The revenue allocated to each performance obligation

is then recognised when, or as, that performance obligation is satisfied. For installation, this is typically at the point in time when

installation is complete. For training, this is typically the point in time when training is delivered. For servicing and maintenance,

the revenue is recognised evenly over the course of the servicing agreement except for ad-hoc servicing and maintenance which

is recognised at the point in time when the work is undertaken.

b) Sale of software

The Group provides software licences and software maintenance to customers, sold both on their own and together with

associated products. For software licences, where the licence and/or maintenance are provided as part of a contract that

provides customers with software licences and other goods and services, then the transaction price is allocated on the same

basis as described in a) above.

The Group’s distinct software licences provide a right of use, and therefore revenue from software licences is recognised at the

point in time when the licence is supplied to the customer. Revenue from software maintenance is recognised evenly over the

term of the maintenance agreement.

c) Extended warranties

The Group provides standard warranties to customers that address potential latent defects that existed at point of sale and

as required by law (assurance-type warranties). In some contracts, the Group also provides warranties that extend beyond the

standard warranty period and may be sold to the customer (service-type warranties).

Assurance-type warranties are accounted for by the Group under IAS 37 ‘Provisions, Contingent Liabilities and Contingent

Assets’. Service-type warranties are accounted for as separate performance obligations and therefore a portion of the transaction

price is allocated to this element, and then recognised evenly over the period in which the service is provided.

d) Contract balances

Contract assets represent the Group’s right to consideration in exchange for goods, capital equipment and/or services that have

been transferred to a customer, and mainly includes accrued revenue in respect of goods and services provided to a customer

but not yet fully billed. Contract assets are distinct from receivables, which represent the Group’s right to consideration that

is unconditional.

Contract liabilities represent the Group’s obligation to transfer goods, capital equipment and/or services to a customer for which

the Group has either received consideration or consideration is due from the customer.

e) Disaggregation of revenue

The Group disaggregates revenue from contracts with customers between: goods, capital equipment and installation, and

aftermarket services; reporting segment; and geographical location.

Management believe these categories best depict how the nature, amount, timing and uncertainty of the Group’s revenue

is affected by economic factors.

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2. Revenue disaggregation and segmental analysis continued

Our Industrial Metrology reporting segment consists of our sensors, measurement systems and software that allow customers to

precisely measure machines and machined parts, generate inspection reports and control their production machines. Our Position

Measurement reporting segment consists of encoders that enable customers to improve control and precision in their machines.

Our Specialised Technologies reporting segment represents all other product lines within the Group, which consists of additive

manufacturing (AM), spectroscopy and neurological product lines. The Industrial Metrology and Position Measurement reporting

segments aggregate product offerings with similar economic characteristics, similar production processes and similar customer

bases. More details of the Group’s products and services are given in the Strategic Report.

	Industrial	Position	Specialised
	Metrology	Measurement	Technologies	Total
Year ended 30 June 2026	£’000	£’000	£’000	£’000
Revenue	447,446	260,940	107,393	815,779
Depreciation, amortisation and impairment	20,031	18,358	3,983	42,372
Research and development expenditure	35,906	17,911	11,298	65,115
Statutory operating profit	66,357	67,230	1,738	135,325
Cost reduction programme	9,098	3,833	1,994	14,925
Loss of office payable to an Executive Director	1,244	416	320	1,980
Closure of drug delivery business	–	–	666	666
Adjusted operating profit	76,699	71,479	4,718	152,896
Share of profits of joint ventures	432	3,608	–	4,040
Net financial income	–	–	–	11,018
Adjusted profit before tax	–	–	–	167,954

	Industrial	Position	Specialised
	Metrology	Measurement	Technologies	Total
Year ended 30 June 2025	£’000	£’000	£’000	£’000
Revenue	430,565	207,43 0	75,049	713,044
Depreciation, amortisation and impairment	22,768	8,219	4,759	35,746
Research and development expenditure	41,480	17,766	9,664	68,910
Statutory operating profit/(loss)	74,130	46,010	(12,255)	107,88 5
Closure of drug delivery business	–	–	2,059	2,059
Closure of Edinburgh research facility	1,378	618	324	2,320
Adjusted operating profit/(loss)	75,508	46,628	(9,872)	112,264
Share of profits of joint ventures	488	3,050	–	3,538
Net financial income	–	–	–	11,429
Adjusted profit before tax	–	–	–	127,231

There is no allocation of assets and liabilities to the segments identified above. Depreciation, amortisation and impairments are

allocated to segments on the basis of the level of activity, unless a specific adjustment relates to a segment.

The following table shows the analysis of non-current assets, excluding deferred tax, derivatives, employee benefits, and reimbursement

right by geographical region:

	2026	2025
	£’000	£’000
UK	285,555	286,14 5
APAC	35,687	38,797
EMEA	91,051	86,445
Americas	45,316	40,876
Total non-current assets	457,609	452,263

No overseas country had non-current assets amounting to 10% or more of the Group’s total non-current assets.

The following table shows the disaggregation of Group’s revenue by category:

	2026	2025
	£’000	£’000
Goods, capital equipment and installation	739,355	642,378
Aftermarket services	76,424	70,666
Total Group revenue	815,779	713,044

Aftermarket services include repairs, maintenance and servicing, programming, training, extended warranties, and software

licences and maintenance. The Group’s revenue by category includes £11.3m (2025: £19.2m) of forward currency contract gains.

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FINANCIAL STATEMENTS

2. Revenue disaggregation and segmental analysis continued

The analysis of revenue by geographical market was:

	2026	2025
	£’000	£’000
APAC	381,911	337,721
UK (country of domicile)	29,986	34,017
EMEA, excluding UK	184,871	173,751
EMEA	214,857	207,768
Americas	219,011	167,555
Total Group revenue	815,779	713,044

Revenue in the previous table has been allocated to regions based on the geographical location of the customer. Countries with

individually significant revenue figures in the context of the Group were:

	2026	2025
	£’000	£’000
China	220,106	186,495
USA	192,912	142,860
Germany	59,253	55,682
Japan	50,964	49,273

There was no revenue from transactions with a single external customer which amounted to more than 10% of the Group’s total revenue.

3. Employee costs

The remuneration costs of our people account for a significant proportion of our total expenditure.

The aggregate employee costs for the year were:

	2026	2025
	£’000	£’000
Wages and salaries	262,976	247,070
Compulsory social security contributions	33,129	30,514
Contributions to defined contribution pension schemes	30,509	29,269
Share-based payment charge	491	790
Total payroll costs	327,105	307,6 4 3

Wages and salaries and compulsory social security contributions include £18.0m (2025: £11.1m) relating to performance bonuses,

£16.1m (2025: £3.2m) relating to redundancy costs, and £2.0m (2025: £nil) relating to loss of office payable to an Executive Director.

Redundancy costs include £14.9m (2025: £nil) related to the cost reduction programme, initiated in FY2025. The cost of the

voluntary and compulsory redundancies have been recognised in FY2026 based on relevant accounting standards.

The average number of people employed by the Group during the year was:

	2026	2025
	Number	Number
UK	3,251	3,491
Overseas	1,806	1,848
Average number of employees	5,057	5,339

Key management personnel have been assessed to be the Directors of the Company and the Senior Leadership Team (SLT), which

was an average of 23 people (2025: 22 people).

The total remuneration of the Directors and the SLT was:

	2026	2025
	£’000	£’000
Short-term employee benefits	9,263	6,322
Post-employment benefits	521	489
Share-based payment charge	491	790
Total remuneration of key management personnel	10,275	7,601

Short-term employee benefits include £1.9m (2025: £0.8m) relating to performance bonuses payable in cash and £1.7m (2025: £nil)

related to loss of office payable to an Executive Director (excluding employer social security contributions).

The share-based payment charge relates to share awards granted in previous years, not yet vested. Shares equivalent to £2.3m

(2025: £0.9m) are to be awarded in respect of FY2026. See the Directors’ Remuneration Report for further details.

Notes continued

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4. Cost of sales

Our cost of sales includes the costs to manufacture our products and our engineering spend on existing and new

products, net of capitalisation and research and development tax credits.

Accounting policy

We receive both government grants and RDEC (tax credits) for research and development projects. For research projects,

where the costs have not been capitalised, we recognise a deduction against expenditure within Cost of sales in the

Consolidated income statement (having initially recognised the grant in the Consolidated balance sheet if it was received in

advance of the related expense). Where a grant or RDEC is received for capitalised development costs, we initially recognise

it in the Consolidated balance sheet and then release it to match the amortisation within Cost of sales. Both types are only

recognised when we have reasonable assurance that any grant conditions will be met.

Included in cost of sales are the following amounts:

	Adjusted	Adjusting	Statutory	Adjusted	Adjusting	Statutory
	total	items	total	total	items	total
	2026	2026	2026	2025	2025	2025
	£’000	£’000	£’000	£’000	£’000	£’000
Production costs	329,506	2,609	332,115	272,814	–	272,814
Research and development expenditure	61,622	3,493	65,115	68,910	–	68,910
Other engineering expenditure	46,171	2,617	48,788	46,770	4,379	51,149
Gross engineering expenditure	107,793	6,110	113,903	115,680	4,379	120,059
Development expenditure capitalised (net of amortisation)	(5,441)	–	(5,441)	(5,574)	–	(5,574)
Development expenditure impaired	3,804	–	3,804	1,818	–	1,818
Development expenditure disposed	–	916	916	–	–	–
Research and development tax credit	(5,239)	–	(5,239)	(5,088)	–	(5,088)
Total engineering costs	100,917	7,026	107,943	106,836	4,379	111,215
Total cost of sales	430,423	9,635	440,058	379,650	4,379	384,029

Production costs include raw materials and components, labour, subcontractor costs, and allocated overheads associated with

manufacturing our products.

Research and development expenditure includes the payroll costs, material costs and allocated overheads attributed to projects

identified as relating to new products or processes. Other engineering expenditure includes the payroll costs, material costs and

allocated overheads attributed to projects identified as relating to existing products or processes.

5. Financial income and expenses

Financial income mainly arises from bank interest on our deposits. We are exposed to realised currency gains and losses

on translation of foreign currency denominated intragroup balances and offsetting financial instruments.

Included in financial income and expenses are the following amounts:

	2026	2025
Financial income	£’000	£’000
Bank interest receivable	9,419	11,741
Currency gains	3,208	–
Fair value gains from one-month forward currency contracts	–	3,360
Interest on pension schemes’ assets	552	503
Other interest income	2,450	913
Total financial income	15,629	16,517

	2026	2025
Financial expenses	£’000	£’000
Currency losses	–	3,899
Fair value losses from one-month forward currency contracts	895	–
Lease interest	617	685
Interest payable on amounts owed to joint ventures	282	371
Interest on pension schemes’ liabilities	173	–
Interest payable on borrowings	35	49
Other interest payable	3,028	4,936
Total financial expenses	5,030	9,940

Currency losses relate to revaluations of foreign currency-denominated balances using latest reporting currency exchange rates.

The gain recognised in FY2026 largely relates to a depreciation of Sterling relative to the US dollar, affecting US dollar-denominated

intragroup balances in the Company. Rolling one-month forward currency contracts are used to offset currency movements on

certain intragroup balances, with fair value gains and losses being recognised in financial income or expenses (see Note 25).

The net currency movement of foreign currency-denominated balances and one-month forward currency contracts was a gain

of £2.3m (2025: loss of £0.5m). Other interest income includes a credit of £2.5m (2025: £nil) and interest payable includes a charge

of £2.9m (2025: £4.9m) for historical and non-recurring tax matters (see Note 7).

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FINANCIAL STATEMENTS

6. Profit before tax

Detailed below are other notable amounts recognised in the Consolidated income statement.

Included in the profit before tax are the following costs/(income):

		2026	2025
	notes	£’000	£’000
Depreciation and impairment of property, plant and equipment, right-of-use assets, and investment properties	9,10,11	33,719	29,057
Loss/(profit) on sale of property, plant and equipment	9	107	(1,083)
Amortisation and impairment of intangible assets	12	8,653	6,689
Loss on disposal of intangible assets	12	1,017	–
Fair value gain on acquisition of subsidiary	30	(359)	–
Grant income	–	(2,001)	(3,280)

These costs/(income) can be found within cost of sales, distribution costs and administrative expenses in the Consolidated income

statement. Further detail on each element can be found in the relevant notes.

Costs within Administrative expenses relating to auditor fees are:

	2026	2025
	£’000	£’000
Audit of these financial statements	985	899
Audit of subsidiary undertakings pursuant to legislation	606	589
Other assurance	–	–
All other non-audit fees	46	33
Total auditor fees	1,637	1,521

7. Taxation

The Group tax charge is affected by our geographic mix of profits and other factors explained in this note. Our expected

future tax charges and related tax assets are also set out in the deferred tax section, together with our view on whether

we will be able to utilise the tax assets in the future.

Accounting policy

Tax on the profit for the year comprises current, deferred and global minimum taxes. Tax is recognised in the Consolidated

income statement except to the extent that it relates to items recognised directly in Other comprehensive income, in which case

it is recognised in the Consolidated statement of comprehensive income and expense. Current tax is the expected tax payable

on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any

adjustment to tax payable in previous years.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting

purposes and the amounts used for taxation purposes. The following temporary differences are not provided for:

— the initial recognition of goodwill;

— the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business

combination; and

— differences relating to investments in subsidiaries, to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of

assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognised to the extent it is probable that future taxable profits (including the future release of deferred

tax liabilities) will be available, against which the deductible temporary differences can be used, based on management’s

assumptions relating to the amounts and timing of future taxable profits. Estimates of future profitability on an entity basis are

required to ascertain whether it is probable that sufficient taxable profits will arise to support the recognition of deferred tax

assets relating to the corresponding entity.

Key judgement – Whether uncertain tax positions need to be recognised

The Group is subject to a range of tax legislation that can vary by jurisdiction, and tax compliance for global businesses is

increasingly complex. The objective of our tax strategy is to comply with all applicable tax laws and regulations in the territories

that the Group operates in. However sometimes the tax treatment of transactions and events can be uncertain.

Where this is the case, judgement is needed in how these uncertain tax treatments should be reflected in preparing the financial

statements, particularly as such topics are often complex and can take several years to resolve. The nature and potential value

of the issues under review were significant and were a key judgement for management.

Notes continued

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7. Taxation continued

The following table shows an analysis of the tax charge:

	2026	2025
	£’000	£’000
Current tax:
UK corporation tax on profits for the year	15,022	7,550
UK corporation tax – prior year adjustments	(2,324)	2,778
Overseas tax on profits for the year	18,612	16,018
Overseas tax – prior year adjustments	(376)	6,166
Global minimum tax	803	757
Total current tax	31,737	33,269
Deferred tax:
Origination and reversal of temporary differences	(667)	2,077
Prior year adjustments	81	(1,203)
Derecognition of previously recognised tax losses and excess interest	202	323
Recognition of previously unrecognised tax losses and excess interest	(349)	(223)
	(733)	974
Tax charge on profit	31,004	34,243

The effective tax rate for the year is lower (2025: higher) than the UK standard rate of corporation tax of 25.0% (2025: 25.0%).

The differences are principally due to differences in tax rates in overseas subsidiaries and prior year adjustments explained

as follows:

	2026	2025
	£’000	£’000
Profit before tax	149,964	118,000
Tax at 25.0% (2025: 25.0%)	37,491	29,500
Effects of:
Different tax rates applicable in overseas subsidiaries	(5,800)	(4,648)
Permanent differences	1,493	1,439
Global minimum tax	803	757
Companies with unrelieved tax losses	29	7
Share of profits of joint ventures	(1,010)	(885)
Tax incentives	(7)	(123)
Prior year adjustments	(2,619)	7,741
Recognition of previously unrecognised tax losses and excess interest	(349)	(223)
Derecognition of previously recognised tax losses and excess interest	202	323
Irrecoverable withholding tax	286	720
Deferred tax on unremitted earnings	471	(425)
Other differences	14	60
Tax charge on profit	31,004	34,243
Effective tax rate	20.7%	29.0%

We operate in many countries around the world and the overall effective tax rate (ETR) is a result of the combination of the varying

tax rates applicable throughout these countries. The FY2026 ETR has reduced mainly due to a prior year adjustment of £2.6m

(2025: £7.7m charge) relating to historical and non-recurring tax matters. The tax matters relate to specific legacy arrangements

which we would not expect to recur. Applicable accounting standards require a provision for tax and the associated interest of £5.3m,

however, we continue to seek resolution to these matters which would reduce these amounts.

The Group’s future ETR largely depends on the geographic mix of profits and whether there are any changes to tax legislation in

the Group’s most significant countries of operations.

The Finance (No 2) Bill 2023, that includes Pillar Two legislation, was substantively enacted on 20 June 2023 for IFRS purposes.

The Pillar Two rules came into effect for accounting periods beginning on or after 1 January 2024. The rules continue to apply to

the Group.

The Group has accrued Global minimum tax of £0.8m (2025: £0.8m) in respect of Ireland. This is due to the statutory corporate

income tax rate of 12.5% on trading income being lower than the global minimum tax rate of 15%. The impact on the effective tax

rate of the Group was 0.5% for FY2026 (2025: 0.6%). The Group will continue to assess the future impact of Pillar Two based on the

latest guidance and law changes of each jurisdiction in which it operates, to ensure compliance.

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FINANCIAL STATEMENTS

7. Taxation continued

Deferred tax assets and liabilities are offset where there is a legally enforceable right of offset and there is an intention to net settle

the balances. After taking these offsets into account, the net position of £14.1m liability (2025: £16.4m liability) is presented as

a £22.9m deferred tax asset (2025: £22.4m asset) and a £37.0m deferred tax liability (2025: £38.8m liability) in the Consolidated

balance sheet.

Where deferred tax assets are recognised, the Directors are of the opinion, based on recent and forecast trading, that the level of

profits in current and future years make it more likely than not that these assets will be recovered.

Deferred tax balances at the end of the year were:

		2026			2025
	Assets	Liabilities	Net	Assets	Liabilities	Net
	£’000	£’000	£’000	£’000	£’000	£’000
Property, plant and equipment	1,023	(35,336)	(34,313)	574	(33,086)	(32,512)
Intangible assets	–	(5,071)	(5,071)	–	(4,655)	(4,655)
Intragroup trading (inventories)	20,470	–	20,470	16,262	–	16,262
Intragroup trading (fixed assets)	1,143	–	1,143	1,12 9	–	1,129
Defined benefit pension schemes	5,671	(2,345)	3,326	6,128	(2,380)	3,748
Reimbursement right	–	(4,224)	(4,224)	–	(3,744)	(3,744)
Derivatives	–	(2,036)	(2,036)	–	(5,088)	(5,088)
Tax losses	1,156	–	1,156	1,545	–	1,545
Other	7,110	(1,653)	5,457	7,66 3	(700)	6,963
Balance at the end of the year	36,573	(50,665)	(14,092)	33,301	(49,653)	(16,352)

Other deferred tax assets include temporary differences relating to inventory provisions totalling £2.4m (2025: £2.6m), other provisions

(including bad debt provisions) of £1.2m (2025: £0.6m), and employee benefits relating to Renishaw plc £0.6m (2025: £1.0m) and

Renishaw KK of £nil (2025: £0.7m), with the remaining balance relating to several other smaller temporary differences.

The movements in the deferred tax balance during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	(16,352)	(13,233)
Movements in relation to property, plant and equipment	(1,801)	(3,115)
Movements in relation to intangible assets	(416)	(588)
Movements in relation to intragroup trading (inventories)	4,208	1,115
Movements in relation to intragroup trading (fixed assets)	14	28
Movements in relation to defined benefit pension scheme assets/liabilities/reimbursement right	713	146
Movements in relation to tax losses	(389)	(278)
Movements in relation to other	(1,596)	1,718
Movements in the Consolidated income statement	733	(974)
Movements in relation to the cash flow hedging reserve	3,052	(1,451)
Movements in relation to the defined benefit pension scheme assets/liabilities/reimbursement right	(1,615)	(374)
Movements in the Consolidated statement of comprehensive income and expense	1,437	(1,825)
Currency adjustment	90	(320)
Balance at the end of the year	(14,092)	(16,352)

Deferred tax assets of £1.2m (2025: £1.5m) in respect of losses are recognised where it is considered likely that the business will

generate sufficient future taxable profits. Deferred tax assets have not been recognised in respect of tax losses carried forward of

£5.5m (2025: £5.0m), due to uncertainty over their offset against future taxable profits and therefore their recoverability. These

unrecognised losses are held by Group companies in Brazil, the UAE and the USA, where there is no time limitation on their utilisation.

In determining profit forecasts for each Group company, the key variable is the revenue forecast, which has been estimated using

consistently applied external and internal data sources. Sensitivity analysis indicates that a reduction of 5% to relevant revenue

forecasts would result in an impairment to deferred tax assets recognised in respect of losses and intragroup trading (inventories)

of around £nil. An increase of 5% to relevant revenue forecasts would result in additions to deferred tax assets in respect of tax

losses not recognised of around £0.3m.

It is likely that the majority of unremitted earnings of overseas subsidiaries would qualify for the UK dividend exemption.

However, £88.0m (2025: £73.7m) of those earnings may still result in a tax liability principally as a result of withholding taxes

levied by the overseas jurisdictions in which those subsidiaries operate. These tax liabilities are not expected to exceed £6.0m

(2025: £5.2m), of which £0.5m (2025: £nil) has been provided on the basis that the Group expects to remit these amounts.

Notes continued

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8. Earnings per share

Basic earnings per share is the amount of profit generated in a financial year attributable to equity shareholders,

divided by the weighted average number of shares in issue during the year.

	2026	2025
Statutory profit after tax attributable to shareholders (£’000)	118,9 60	83,757
Number of shares (72,788,543 allotted, called-up and fully paid ordinary shares)	72 ,757,446	72,734,797
Basic earnings per share	163.5p	115.2p
Diluted earnings per share	163.5p	115.2p

The number of shares excludes 31,097 (2025: 53,746) shares held by the Employee Benefit Trust (EBT). On this basis, earnings per

share (basic and diluted) is calculated as 163.5 pence (2025: 115.2 pence).

There is no difference between the weighted average earnings per share and the basic and diluted earnings per share. For the

calculation of adjusted earnings per share see Note 29.

9. Property, plant and equipment

The Group makes significant investments in distribution and manufacturing infrastructure. During the year we have

invested in our capital equipment to support manufacturing output and the rapid growth in our order book.

Accounting policy

Freehold land is not depreciated. Other assets are stated at cost less accumulated depreciation and accumulated impairment

losses, if any. Depreciation is provided to write off the cost of assets less their estimated residual value on a straight-line basis

over their estimated useful economic lives as follows: freehold buildings, 50 years; building infrastructure, 10 to 50 years; plant

and equipment, 3 to 25 years; and vehicles, 3 to 4 years.

	Freehold			Assets in the
	land and	Plant and	Motor	course of
	buildings	equipment	vehicles	construction	Total
Year ended 30 June 2026	£’000	£’000	£’000	£’000	£’000
Cost
At 1 July 2025	274,628	309,054	5,962	34,539	624,183
Additions	4,088	23,492	580	10,182	38,342
Acquisition of a subsidiary	1,466	289	51	–	1,806
Transfers	24,892	7,175	–	(32,067)	–
Transfers to Investment properties	(14,090)	(453)	–	–	(14,543)
Disposals	(1,735)	(31,057)	(1,187)	–	(33,979)
Currency adjustment	411	1,039	62	–	1,512
At 30 June 2026	289,660	309,539	5,468	12,654	617, 321
Depreciation
At 1 July 2025	53,790	227,715	4,391	–	285,896
Charge for the year	5,463	17,5 63	446	–	23,472
Acquisition of a subsidiary	134	276	38	–	448
Impairment	–	1,500	–	–	1,500
Transfers to Investment properties	(2,692)	(322)	–	–	(3,014)
Disposals	(170)	(28,818)	(999)	–	(29,987)
Currency adjustment	369	668	22	–	1,059
At 30 June 2026	56,894	218,582	3,898	–	279,374
Net book value
At 30 June 2026	232,766	90,957	1,570	12,654	337,947
At 30 June 2025	220,838	81,339	1,571	34,539	338,287

Loss on disposals of Property, plant and equipment amounted to £0.1m (2025: £1.1m profit).

The Group has recognised an impairment of £1.5m (2025: £1.0m). This year’s charge relates to tangible assets used in producing

a new encoder product following a reprioritisation of resource, resulting from the significant increase in demand for our other

encoder products.

Additions to assets in the course of construction comprise £7.9m (2025: £11.2m) for land and buildings and £2.3m (2025: £4.2m)

for plant and equipment.

At 30 June 2026, properties with a net book value of £nil (2025: £48.7m) were subject to a fixed charge to secure the UK defined

benefit pension scheme liabilities (see Note 23 for further information on the release of the charges).

Transfers to investment properties of net book value £11.5m (2025: £1.8m) were made during the year (see Note 11).

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FINANCIAL STATEMENTS

9. Property, plant and equipment continued

	Freehold			Assets in the
	land and	Plant and	Motor	course of
	buildings	equipment	vehicles	construction	Total
Year ended 30 June 2025	£’000	£’000	£’000	£’000	£’000
Cost
At 1 July 2024	255,536	278,189	6,099	56,593	596,417
Additions	6,374	23,258	1,220	15,421	46,273
Transfers	19,032	18,443	–	(37,475)	–
Transfers to Investment properties	(2,795)	(597)	–	–	(3,392)
Disposals	(725)	(7,819)	(1,206)	–	(9,750)
Currency adjustment	(2,794)	(2,420)	(151)	–	(5,365)
At 30 June 2025	274,628	309,054	5,962	34,539	624,183
Depreciation
At 1 July 2024	49,460	216,838	5,079	–	271,377
Charge for the year	5,275	17,497	470	–	23,242
Impairment	989	–	–	–	989
Transfers to Investment properties	(1,179)	(439)	–	–	(1,618)
Disposals	(270)	(4,619)	(1,057)	–	(5,946)
Currency adjustment	(485)	(1,562)	(101)	–	(2,148)
At 30 June 2025	53,790	227,715	4,391	–	285,896
Net book value
At 30 June 2025	220,838	81,339	1,571	34,539	338,287
At 30 June 2024	206,076	61,351	1,020	56,593	325,040

10. Right-of-use assets

The Group leases distribution properties, plant and equipment, and cars from third parties and recognises an associated

right-of-use asset where we are afforded control and economic benefit from the use of the asset.

Accounting policy

At the commencement date of a lease arrangement the Group recognises a right-of-use asset for the leased item and a lease

liability for any payments due. Right-of-use assets are initially measured at cost, being the present value of the lease liability plus

any initial costs incurred in entering the lease and less any incentives received. See Note 21 for further detail on lease liabilities.

Right-of-use assets are subsequently depreciated on a straight-line basis from the commencement date to the earlier of the end

of the useful life or the end of the lease term.

	Leasehold	Plant and	Motor
	property	equipment	vehicles	Total
Year ended 30 June 2026	£’000	£’000	£’000	£’000
Net book value
At 1 July 2025	8,653	74	3,491	12,218
Additions	564	7	2,870	3,441
Depreciation	(2,316)	(39)	(2,642)	(4,997)
Currency adjustment	256	1	47	304
At 30 June 2026	7,157	43	3,766	10,966

	Leasehold	Plant and	Motor
	property	equipment	vehicles	Total
Year ended 30 June 2025	£’000	£’000	£’000	£’000
Net book value
At 1 July 2024	9,899	66	4,781	14,746
Additions	1,746	49	841	2,636
Reductions	–	–	(12)	(12)
Depreciation	(2,541)	(43)	(2,049)	(4,633)
Currency adjustment	(451)	2	(70)	(519)
At 30 June 2025	8,653	74	3,491	12,218

Notes continued

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11. Investment properties

The Group’s investment properties consist of properties in India, Ireland, Slovenia, Spain, Switzerland and the UK,

which are occupied by rent-paying third parties. During the year, we have transferred properties from Property,

plant and equipment to Investment properties following a change in use in Slovenia, Spain and the UK.

Accounting policy

Where property owned by the Group is held to earn rentals or for long-term capital growth it is recognised as investment property.

Where a property is part-occupied by the Group, portions of the property are recognised as investment property if they meet

the above description and if these portions could be sold separately and reliably measured. If the portions could not be sold

separately, the property is recognised as an investment property only if a significant proportion is held for rental or

appreciation purposes.

The Group has elected to value investment properties on a cost basis, initially comprising of the purchase price and any directly

attributable expenditure. Depreciation is provided to write off the cost of assets on a straight-line basis over their estimated useful

economic lives, being 50 years. Amounts relating to freehold land are not depreciated.

	2026	2025
	£’000	£’000
Cost
Balance at the beginning of the year	15,211	12,103
Transfers from Property, plant and equipment	14,543	3,392
Acquisition of a subsidiary	350	–
Currency adjustment	(109)	(284)
Balance at the end of the year	29,995	15,211
Depreciation
Balance at the beginning of the year	3,645	1,818
Charge for the year	247	193
Transfers from Property, plant and equipment	3,014	1,618
Impairment	3,503	–
Currency adjustment	3	16
Balance at the end of the year	10,412	3,645
Net book value	19,583	11,566

The Group has recognised impairments of £3.5m (2025: £nil) following a market value assessment of properties in Slovenia and

the UK.

The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase,

construct or develop investment properties.

Amounts recognised in the Consolidated income statement relating to investment properties:

	2026	2025
	£’000	£’000
Rental income	1,249	945
Direct operating expenses (including repairs and maintenance)	(334)	(218)
Profit	915	727

The fair value of the Group’s investment properties totalled £27.8m at 30 June 2026 (2025: £18.4m). Fair values of each investment

property have been determined within the last three years by independent valuers who hold recognised and relevant professional

qualifications and have recent experience in the location and category of each investment property being valued. These valuations

have been assessed to be materially appropriate at 30 June 2026.

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FINANCIAL STATEMENTS

12. Intangible assets

Our Consolidated balance sheet contains significant intangible assets, mainly goodwill (which arises when we acquire

a business and pay a higher amount than the fair value of its net assets) and capitalised development costs. We make

significant investments in the development of new products, a key part of our business model, and some of these costs

are initially capitalised and then written off over the lifetime of future sales of that product.

Accounting policy

Goodwill arising on acquisition represents the difference between the cost of the acquisition and the fair value of the net

identifiable assets acquired, net of deferred tax. Identifiable intangibles are those which can be sold separately or which arise

from legal rights regardless of whether those rights are separable.

Goodwill is stated at cost less any accumulated impairment losses. It is not amortised but is tested annually for impairment or

earlier if there are any indications of impairment. The annual impairment review involves comparing the carrying amount to the

estimated recoverable amount and recognising an impairment loss if the recoverable amount is lower. Impairment losses are

recognised in the Consolidated income statement.

Intangible assets such as customer lists, patents, trademarks, know-how and intellectual property that are acquired by the Group

are stated at cost less amortisation and impairment losses. Amortisation is charged to the Consolidated income statement on

a straight-line basis over the estimated useful lives of the intangible assets. The estimated useful lives of the intangible assets

included in the Consolidated balance sheet reflect the benefit derived by the Group and vary from five to 10 years.

Expenditure on research activities is recognised in the Consolidated income statement as an expense as incurred. Expenditure on

development activities is capitalised if: the product or process is technically and commercially feasible; the Group intends and has

the technical ability and sufficient resources to complete development; future economic benefits are probable; and the Group can

measure reliably the expenditure attributable to the intangible asset during its development.

Development activities involve a plan or design for the production of new or substantially improved products or processes.

The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads.

Other development expenditure is recognised in the Consolidated income statement as an expense as incurred.

Capitalised development expenditure is amortised over the useful economic life appropriate to each product or process, ranging

from five to 10 years, and is stated at cost less accumulated amortisation and less accumulated impairment losses. Amortisation

commences when a product or process is available for use as intended by management. Capitalised development expenditure

is removed from the balance sheet 10 years after being fully amortised.

All non-current assets are tested for impairment whenever there is an indication that their carrying value may be impaired.

An impairment loss is recognised in the Consolidated income statement to the extent that an asset’s carrying value exceeds

its recoverable amount, which represents the higher of the asset’s fair value less costs to sell and its value-in-use. An asset’s

value-in-use represents the present value of the future cash flows expected to be derived from the asset or from the cash-

generating unit to which it relates. The present value is calculated using a discount rate that reflects the current market

assessment of the time value of money and the risks specific to the asset concerned.

Goodwill and capitalised development costs are subject to an annual impairment test.

Key judgement – Whether a project meets the criteria for capitalisation

Product development costs are capitalised once a project has reached a certain stage of development, being the point at which

the product has passed testing to demonstrate it meets the technical specifications of the project and it satisfies all applicable

regulations. Judgement is required to assess whether the new product development has reached the appropriate point for

capitalisation of costs to begin. These costs are subsequently amortised over their useful economic life once ready for use.

If a product becomes obsolete, the accumulated capitalised development costs would need to be immediately written off in the

Consolidated income statement.

Key estimate – Estimates of future cash flows used for impairment testing

Determining whether capitalised development costs are impaired requires an estimation of the value-in-use of the project.

To calculate the value-in-use we need to estimate the future cash flows of the project and select the appropriate discount rate

for each project.

Notes continued

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12. Intangible assets continued

		Internally		Intellectual
		generated		property and
		development	Software	other intangible
	Goodwill	costs	licences	assets	Total
Year ended 30 June 2026	£’000	£’000	£’000	£’000	£’000
Cost
At 1 July 2025	19,882	189,572	12,505	4,879	226,838
Additions	1,095	9,896	7	43	11,041
Disposals	–	(19,038)	(3,637)	–	(22,675)
Currency adjustment	278	–	(40)	6	244
At 30 June 2026	21,255	180,430	8,835	4,928	215,448
Amortisation
At 1 July 2025	9,028	152,407	11,956	2,897	176,288
Charge for the year	–	4,455	179	215	4,849
Impairment	–	3,804	–	–	3,804
Disposals	–	(18,122)	(3,536)	–	(21,658)
Currency adjustment	–	–	(41)	(18)	(59)
At 30 June 2026	9,028	142,544	8,558	3,094	163,224
Net book value
At 30 June 2026	12,227	37,886	277	1,834	52,224
At 30 June 2025	10,854	37,165	549	1,982	50,550

		Internally		Intellectual
		generated		property and other
		development	Software	intangible
	Goodwill	costs	licences	assets	Total
Year ended 30 June 2025	£’000	£’000	£’000	£’000	£’000
Cost
At 1 July 2024	20,258	187,941	12,197	4,864	225,260
Additions	–	9,999	286	–	10,285
Disposals	–	(8,368)	–	–	(8,368)
Currency adjustment	(376)	–	22	15	(339)
At 30 June 2025	19,882	189,572	12,505	4,879	226,838
Amortisation
At 1 July 2024	9,028	154,531	11,751	2,607	177,917
Charge for the year	–	4,426	191	254	4,871
Impairment	–	1,818	–	–	1,818
Disposals	–	(8,368)	–	–	(8,368)
Currency adjustment	–	–	14	36	50
At 30 June 2025	9,028	152,407	11,956	2,897	176,288
Net book value
At 30 June 2025	10,854	37,165	549	1,982	50,550
At 30 June 2024	11,230	33,410	446	2,257	47,3 4 3

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FINANCIAL STATEMENTS

12. Intangible assets continued

Goodwill

Goodwill has arisen on the acquisition of several businesses and has an indeterminable useful life. It is therefore not amortised

but is instead tested for impairment annually and at any point during the year when an indicator of impairment exists.

During the year, the Group acquired the remaining 30% of Metrology Software Products Limited (MSP) increasing its ownership

percentage to 100%. The acquisition resulted in goodwill of £1.1m being recognised (see Note 30 for more information on the

business combination).

In FY2026, the Group has reorganised into three new segments (see Note 2). In accordance with IAS 36.87, goodwill has been

reallocated to the revised cash generating units (CGUs) that are expected to benefit from the business combination in which the

goodwill arose. The CGUs used for goodwill impairment testing have been reallocated to the product lines, namely Industrial

Metrology (IM), Position Measurement (PM), Additive manufacturing (AM), Spectroscopy (SPD) and Neurological (NPD), as set

out below.

The reallocation was performed using a relative value approach, consistent with IAS 36. The product lines represent the lowest

level at which goodwill is monitored for internal management purposes and are not larger than our segments before aggregation.

The reallocation of goodwill is not a change in accounting policy under IAS 8, with no retrospective impairment test performed.

The analysis of goodwill according to CGU is:

	2026	2025
	£’000	£’000
Industrial Metrology (IM)	10,008	n/a
Neurological (NPD)	2,219	n/a
Total goodwill	12,227	10,854

Goodwill has arisen principally on the acquisitions of Renishaw Fixturing Solutions, LLC (IM), itp GmbH (IM), Renishaw Mayfield

SARL (NPD) and Metrology Software Products Limited (IM).

The recoverable amounts of acquired goodwill are based on value-in-use calculations. These calculations use cash flow projections

based on the financial business plans approved by management for the next five financial years. The cash flows beyond this

forecast are extrapolated to perpetuity using a nil growth rate on a prudent basis, to reflect the uncertainties over forecasting

beyond five years.

The following pre-tax discount rates have been used in discounting the projected cash flows:

		2026		2025
	2026	Long-term	2025	Long-term
CGU	Discount rate	growth rate	Discount rate	growth rate
Industrial Metrology (IM)	15.8%	0.0%	n/a	n/a
Neurological (NPD)	22.4%	0.0%	n/a	n/a

The Group’s post-tax weighted average cost of capital, calculated at 30 June 2026, is 12.1% (2025: 11.6%). Pre-tax discount rates

for the IM CGU are calculated from this basis, given that they are aligned with the wider Group’s industries, markets and processes.

The NPD CGU has a higher risk weighting, reflecting the less mature nature of this product group.

CGU specific five-year business plans have been used in determining cash flow projections. Within these plans, revenue forecasts

are calculated with reference to external market data, past performance, and new product launches, consistent with revenue forecasts

across the Group. Production costs, engineering costs, distribution costs and administrative expenses are calculated based on

management’s best estimates of what is required to support revenue growth and new product development. Estimates of capital

expenditure and working capital requirements are also included in the cash flow projections. The key estimate within these business

plans is the forecast revenue growth, given that the cost bases of the businesses can be flexed in line with revenue performance.

Given the average revenue growth assumptions included in the five-year business plans, management’s sensitivity analysis involves

modelling a reduction in the forecast cash flows utilised in those business plans and therefore into perpetuity.

For there to be an impairment in the IM or NPD CGUs, the pre-tax discount rate would need to increase to at least 727% and 40%

respectively, or there would need to be a reduction to forecast cash flows of 98% and 50% respectively.

Internally generated development costs

The key assumption in determining the value-in-use for internally generated development costs is the forecast unit sales over the

useful economic life, which is determined by management using their knowledge and experience with similar products and the

sales history of products already available in the market. Resulting cash flow projections over five to 10 years, the periods over which

product demand forecasts can be reasonably predicted and internally generated development costs are written off, are discounted

using pre-tax discount rates, which are calculated from the Group post-tax weighted average cost of capital of 12.1% (2025: 11.6%).

There were impairments of internally generated development costs in the year of £3.8m (2025: £1.8m). This includes a £3.7m

impairment of a new encoder product following a reprioritisation of resource, resulting from the significant increase in demand for

our other encoder products.

In addition, there was a £0.9m loss on disposal of the drug delivery intangible asset, following the decision to close the drug delivery

business. For the largest projects, comprising 98% of the net book value at 30 June 2026, a 10% reduction to forecast unit sales,

or an increase in the discount rate by 1%, would not result in an impairment.

Notes continued

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13. Investments in joint ventures

Where we make an investment in a company which gives us joint control but not full control, we account for our share

of their post-tax profits in our financial statements. We have one remaining joint venture arrangement, RLS, following the

acquisition of the remaining 30% interest in MSP.

The Group’s investments in joint ventures (all investments being in the ordinary share capital of the joint ventures), whose accounting

years end on 30 June, were:

	Country of incorporation and	2026	2025
	principal place of business	Ownership %	Ownership %
RLS Merilna tehnika d.o.o. (RLS) – joint venture	Slovenia	50.0	50.0
Metrology Software Products Limited (MSP) – joint venture	England & Wales	100.0	70.0

During the year, the Company acquired the remaining 30% of MSP, increasing its ownership percentage to 100%. In accordance

with IFRS 10, the control requirements have now been met and MSP has been consolidated in the Group’s financial statements as

at 30 June 2026; see Note 30 for more information on the business combination.

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	27,692	25,485
Dividends received	(957)	(1,500)
Share of profits of joint ventures	4,040	3,538
Acquisition of subsidiary	(4,840)	–
Currency adjustment	190	169
Balance at the end of the year	26,125	27,6 92

Renishaw International Limited (RIL) has a 14-day notice deposit agreement with RLS. Interest is payable by RIL to RLS at a market

rate on a monthly basis. Under this agreement, RIL held EUR 18.5m (£15.9m equivalent) as at 30 June 2026 (2025: £14.5m).

The amount is recognised as ‘Amounts payable to joint venture’ in the Consolidated balance sheet.

Summarised financial information for joint ventures:

	RLS		MSP
	2026	2025	2026	2025
	£’000	£’000	£’000	£’000
Assets	58,795	52,093	–	6,258
Liabilities	(6,546)	(5,526)	–	(532)
Net assets	52,249	46,567	–	5,726
Group’s share of net assets	26,125	23,284	–	4,008
Revenue	44,885	38,045	3,431	3,389
Profit for the year	7,216	6,10 0	617	697
Group’s share of profit for the year	3,608	3,050	432	488

For the nature of the activities, see Other statutory and regulatory disclosures.

The financial statements of RLS have been prepared on the basis of Slovenian Accounting Standards.

The financial statements of MSP have been prepared on the basis of FRS 102.

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FINANCIAL STATEMENTS

14. Leases (as lessor)

The Group acts as a lessor for Renishaw-manufactured equipment on finance and operating lease arrangements.

This is mainly for high-value capital equipment such as our additive manufacturing machines.

Accounting policy

Where the Group transfers the risks and rewards of ownership of lease assets to a third party, the Group recognises a receivable

in the amount of the net investment in the lease. The lease receivable is subsequently reduced by the principal received, while an

interest component is recognised as financial income in the Consolidated income statement. Standard contract terms are up to

five years and there is a nominal residual value receivable at the end of the contract.

Where the Group retains the risks and rewards of ownership of lease assets, it continues to recognise the leased asset in Property,

plant and equipment. Income from operating leases is recognised on a straight-line basis over the lease term and recognised

as revenue, rather than other revenue, as such income is not material. Operating leases are on one to five year terms.

The total future lease payments are split between the principal and interest amounts below:

		2026			2025
	Gross		Net	Gross		Net
	investment	Interest	investment	investment	Interest	investment
	£’000	£’000	£’000	£’000	£’000	£’000
Receivable in less than one year	8,253	1,066	7,187	6,027	832	5,19 5
Receivable between one and two years	7,812	951	6,861	5,416	572	4,844
Receivable between two and three years	3,689	271	3,418	4,120	317	3,803
Receivable between three and four years	417	16	401	2,669	154	2,515
Receivable between four and five years	87	3	84	803	15	788
Total future minimum lease payments receivable	20,258	2,307	17,951	19,035	1,890	17,145

Finance lease receivables are presented as £10.8m (2025: £11.9m) non-current assets and £7.2m (2025: £5.2m) current assets in

the Consolidated balance sheet.

The total of future minimum lease payments receivable under non-cancellable operating leases were:

	2026	2025
	£’000	£’000
Receivable in less than one year	1,508	1,13 8
Receivable in more than one year	2,580	1,323
Total future minimum lease payments receivable	4,088	2,461

During the year, £1.3m (2025: £1.4m) of operating lease income was recognised in revenue.

15. Cash and cash equivalents and bank deposits

We have always valued having cash in the bank to protect the Group from downturns and enable us to react swiftly to

investment or market capture opportunities. We currently hold significant cash and cash equivalents and bank deposits,

mostly in the UK and spread across several banks with high credit ratings.

Accounting policy

Cash and cash equivalents comprise cash balances, and deposits with an original maturity of less than three months or with an

original maturity date of more than three months where the deposit can be accessed on demand without significant penalty for

early withdrawal and where the original deposit amount is recoverable in full.

Cash and cash equivalents

An analysis of cash and cash equivalents at the end of the year was:

	2026	2025
	£’000	£’000
Bank balances and cash in hand	148,092	87,138
Short-term deposits	209	282
Balance at the end of the year	148,301	87,420

Bank deposits

Bank deposits at the end of the year amounted to £142.7m (2025: £186.2m), of which £22.0m matures in July 2026, £1.8m

in August 2026, £26.0m in September 2026, £1.8m in October 2026, £50.0m in December 2026, £20.0m in January 2027,

£1.0m in February 2027 and £20.0m in March 2027.

During the year bank deposits of £186.2m matured, of which £60.0m in July 2025, £20.0m in September 2025, £65.0m in

December 2025 and £30.0m in May 2026.

Notes continued

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16. Inventories

We increased our inventories during the year to support rapid growth in orders, and remain committed to high customer

delivery performance.

Accounting policy

Inventory and work in progress is valued at the lower of actual cost on a first-in, first-out (FIFO) basis and net realisable value.

In respect of work in progress and finished goods, cost includes all production overheads and the attributable proportion of

indirect overhead expenses that are required to bring inventories to their present location and condition. Overheads are absorbed

into inventories on the basis of normal capacity or on actual hours if higher.

Key estimate – Determination of net realisable inventory value

Determining the net realisable value of inventory requires management to estimate future demand, especially in respect of

provisioning for slow-moving and potentially obsolete inventory. When calculating an inventory provision, management generates

an estimate of future demand for individual inventory items (capped at 3 years) based upon the higher of 12 months of historical

usage or 12 months of demand from customer orders and manufacturing build plans. A 50% provision is calculated where actual

holdings represent between 3 to 5 years’ worth of future demand, and 100% is calculated where actual holdings represent over

5 years’ worth of future demand. Adjustments are made where needed, for example where it is highly likely that there will be an

increase in sales beyond the 12-month demand period or where there are obsolescence programmes.

An analysis of inventories at the end of the year was:

	2026	2025
	£’000	£’000
Raw materials	62,440	56,911
Work in progress	37,758	31,623
Finished goods	81,545	70,931
Balance at the end of the year	181,743	159,465

At the end of the year, the gross cost of inventories which had provisions held against them totalled £27.4m (2025: £29.4m).

During the year, the amount of write-down of inventories recognised as an expense in the Consolidated income statement was

£0.1m (2025: £1.0m).

Inventories in Renishaw plc account for 61% (2025: 61%) of the total Inventories of the Group. A 10% reduction in the estimate of

future demand for all Renishaw plc inventory items would result in an increase in the inventory provision of £0.3m (2025: £0.4m).

17. Provisions

A provision is a liability recorded in the Consolidated balance sheet, where there is uncertainty over the timing or amount

that will be paid.

Accounting policy

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable

that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be

made of the amount of the obligation.

The Group provides a warranty from the date of purchase, except for those products that are installed by the Group where the

warranty starts from the date of completion of the installation. This is typically for a 12-month period, although up to three years

is given for a small number of products. A warranty provision is calculated on the basis of historical returns and internal quality

reports and is included in the Group financial statements.

Warranty provision and other provision movements during the year were:

	Warranty		Other
	2026	2025	2026	2025
	£’000	£’000	£’000	£’000
Balance at the beginning of the year	2,826	2,997	6,152	–
Created during the year	2,783	3,281	3,505	6,152
Unused amounts reversed	–	(924)	(2,450)	–
Utilised in the year	(1,928)	(2,528)	(1,300)	–
	855	(171)	(245)	6,152
Balance at the end of the year	3,681	2,826	5,907	6,152

The warranty provision has been calculated on the basis of historical return-in-warranty information and other internal reports.

It is expected that most of this expenditure will be incurred in the next financial year and all expenditure will be incurred within three

years of the balance sheet date.

Other provisions comprises interest payable liabilities of £5.3m (2025: £4.9m) for historical and non-recurring tax matters (see Note 7

for further details) and other provisions of £0.6m (2025: £1.3m). The £1.3m onerous contract provision recognised in FY2025 has

been fully utilised.

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FINANCIAL STATEMENTS

18. Contract liabilities

Contract liabilities represent the Group’s obligation to transfer goods, capital equipment and/or services to a customer

for which the Group has either received consideration or consideration is due from the customer. Our balances mostly

comprise advances received from customers and payments for services yet to be completed.

Balances at the end of the year were:

	2026	2025
	£’000	£’000
Goods, capital equipment and installation	2,087	813
Aftermarket services	9,405	8,251
Deferred revenue	11,492	9,064
Advances received from customers	14,819	5,605
Balance at the end of the year	26,311	14,669

The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied at the end of the year is

£23.2m (2025: £14.7m). Of this, £1.7m (2025: £1.5m) is not expected to be recognised in the next financial year.

19. Other payables

Separate from our trade payables and contract liabilities, which directly relate to our trading activities, our Other payables

mostly comprises amounts payable to employees, or relating to employees, and payroll taxes and social security.

Balances at the end of the year were:

	2026	2025
	£’000	£’000
Payroll taxes and social security	7,905	7,484
Performance bonuses	18,055	11,047
Holiday pay and retirement accruals	5,792	11,091
Indirect tax payable	6,548	5,278
Deferred research and development tax credit (RDEC)	2,473	1,131
Tariff refund payable	5,680	–
Other creditors and accruals	21,547	21,101
Total other payables	68,000	57,132

Holiday pay accruals are based on a calculation of the number of days’ holiday earned during the year, but not yet taken.

Deferred research and development tax credit relates to amounts received for capitalised development costs which cannot

be recognised (see Note 4). Certain retirement accruals have been transferred to Employee benefits (see Note 23).

Other creditors and accruals includes a number of other individually smaller accruals.

20. Borrowings

The Group’s only source of external borrowing is a fixed-interest loan facility entered into to directly finance the purchase

of a distribution facility in Japan in FY2019.

Third-party borrowings at 30 June 2026 consist of a loan entered into on 31 May 2019 by Renishaw KK, with original principal

of JPY 1,447m (£10.5m). Principal of JPY 12m is repayable each month, with a fixed interest rate of 0.81% also paid on monthly

accretion for the first five years. This loan was extended for an additional five years in May 2024, with a fixed interest rate of 1.41%

payable for the remaining term, at which time the principal will have been repaid in full. There are no covenants attached to this loan.

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	2,884	3,522
Interest	35	49
Repayments	(731)	(794)
Currency adjustment	(202)	107
Balance at the end of the year	1,986	2,884

Borrowings are held at amortised cost. There is no significant difference between the book value and fair value of borrowings.

This is estimated by discounting contractual future cash flows, which represents level 2 of the fair value hierarchy defined in Note 25.

Notes continued

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21. Leases (as lessee)

The Group leases distribution properties and cars from third parties and recognises an associated lease liability for the

total present value of payments to which the lease contracts commit us to.

Accounting policy

At the commencement date of a lease arrangement the Group recognises a right-of-use asset for the leased item and a lease

liability for the value of lease payments to be made over the lease term. Lease liabilities are initially measured at the present

value of the lease payments that are not paid at the commencement date, discounted using the incremental borrowing rate of

the applicable entity. The lease liability is subsequently measured at amortised cost using the effective interest method. It is

remeasured if there is a change in future lease payments arising from a change in an index or rate (such as an inflation-linked

increase), or if there is a change in the Group’s assessment of whether it will exercise an extension or termination option.

When this happens, there is a corresponding adjustment to the right-of-use asset. Where the Group enters into leases with

a lease term of 12-months or less, these are treated as ‘short-term’ leases and are recognised on a straight-line basis as an

expense in the Consolidated income statement. The same treatment applies to low-value assets, which are typically IT equipment

and office equipment.

Undiscounted future lease liabilities are analysed as below:

	Leasehold	Plant and	Motor
	property	equipment	vehicles	Total
2026	£’000	£’000	£’000	£’000
Due in less than one year	2,431	18	2,259	4,708
Due between one and two years	1,913	13	1,218	3,144
Due between two and three years	1,220	11	495	1,726
Due between three and four years	219	4	159	382
Due between four and five years	104	–	6	110
Due in more than five years	4,275	–	–	4,275
Total future minimum lease payments payable	10,162	46	4,137	14,345
Effect of discounting	(2,611)	(2)	(214)	(2,827)
Lease liabilities	7,5 51	44	3,923	11,518

	Leasehold	Plant and	Motor
	property	equipment	vehicles	Total
2025	£’000	£’000	£’000	£’000
Due in less than one year	2,490	34	1,985	4,509
Due between one and two years	2,110	18	1,303	3,431
Due between two and three years	1,667	12	501	2,180
Due between three and four years	1,135	11	80	1,226
Due between four and five years	182	4	2	188
Due in more than five years	4,358	–	–	4,358
Total future minimum lease payments payable	11,942	79	3,871	15,892
Effect of discounting	(2,916)	(4)	(211)	(3,131)
Lease liabilities	9,026	75	3,660	12,761

Lease liabilities are also presented as a £4.3m (2025: £4.0m) current liability and a £7.2m (2025: £8.8m) non-current liability in the

Consolidated balance sheet.

Amounts recognised in the Consolidated income statement relating to leases were:

	2026	2025
	£’000	£’000
Depreciation of right-of-use assets	4,997	4,633
Interest expense on lease liabilities	617	685
Expenses relating to short-term and low-value leases	76	395
Total expense recognised in the Consolidated income statement	5,690	5,713
Total cash outflows for leases	5,653	5,364

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FINANCIAL STATEMENTS

22. Changes in liabilities arising from financing activities

£’000	1 July 2025	Cash flows	Other	Currency	30 June 2026
Lease liabilities	12,761	(4,960)	3,388	329	11,518
Borrowings	2,884	(731)	35	(202)	1,986
Amounts payable to joint venture	14,530	1,022	282	114	15,948
	30,175	(4,669)	3,705	241	29,452

£’000	1 July 2024	Cash flows	Other	Currency	30 June 2025
Lease liabilities	15,022	(4,284)	2,564	(541)	12,761
Borrowings	3,522	(794)	49	107	2,884
Amounts payable to joint venture	8,475	5,612	371	72	14,530
	27,019	534	2,984	(362)	30,175

See Notes 20, 21 and 13 for further details on borrowings, leasing activities and amounts payable to joint venture.

23. Employee benefits

The Group operates a number of retirement benefit schemes for its employees, including both defined benefit and defined

contribution. The Group’s three principal contributory pension schemes are in the UK, Ireland and Germany. The three

schemes represent 93% and 96% of liabilities and assets, including reimbursement right, respectively.

Accounting policy

Defined benefit pension schemes are managed by trustees who are independent of the Group. Investment assets of the schemes

are measured at fair value using the bid price of the unitised investments, quoted by the investment manager, at the reporting

date. For buy-in insurance contracts, where the income received from a policy matches exactly the benefit payments due to the

members it is covering, the value attributable to the contract to be recognised as an asset is the equivalent IAS 19 value of the

corresponding liabilities. Reimbursement assets are measured at fair value, quoted by the insurance company, at the reporting

date. Reimbursement assets are not classified as a plan asset as they are not a qualifying insurance policy.

Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high-

quality corporate bond of equivalent term and currency to the liability. Remeasurements arising from defined benefit schemes

comprise actuarial gains and losses, the return on scheme assets (excluding interest) and the effect of the asset ceiling (if any,

excluding interest). The Company recognises them immediately in Other comprehensive income and all other expenses related

to defined benefit schemes are included in the Consolidated income statement.

The pension schemes’ surpluses, to the extent that they are considered recoverable, or deficits are recognised in full and presented on

the face of the Consolidated balance sheet under Employee benefits. Where a guarantee is in place in relation to a pension scheme

deficit, liabilities are reported in accordance with IFRIC 14 ‘The Limit on a Defined Benefit Asset, Minimum Funding Requirements and

their Interaction’. To the extent that contributions payable will not be available as a refund after they are paid into the plan, a liability is

recognised at the point the obligation arises, which is the point at which the minimum funding guarantee is agreed. Overseas-based

employees are covered by a combination of state, defined benefit and private pension schemes in their countries of residence.

For defined contribution schemes, the amount charged to the Consolidated income statement represents the contributions

payable to the schemes in respect of the accounting period.

Key estimate – Valuation of defined benefit pension schemes’ liabilities

Determining the value of the future defined benefit obligation requires estimation in respect of the assumptions used to determine

the present values. These include future mortality, discount rate and inflation. Management makes these estimates in consultation

with independent actuaries.

Key judgement – Whether past service costs need to be recognised

Management also need to determine the appropriate accounting treatment for past service costs, and do so in consultation with

independent legal advisers and actuaries.

Defined contribution schemes

The total pension cost of the Group for the year was £30.5m (2025: £29.3m), of which £0.1m (2025: £0.1m) related to Directors and

£6.9m (2025: £6.2m) related to overseas schemes.

The Renishaw pension fund

The Renishaw pension fund (UK scheme) was closed to new members on 5 April 2007, at which time the scheme ceased any future

accrual for existing members.

At 30 June 2026, the UK scheme was in a net surplus position of £6.6m (2025: surplus £7.6m), and is therefore presented in

non-current assets in the Consolidated balance sheet. The Trust Deed and Rules allow the UK scheme to recognise an

unconditional right to a refund of any surplus.

The Trustees of the UK scheme previously undertook a buy-in and insured around 99% of the UK scheme’s liabilities by purchasing

an insurance policy. This contract was effective from 19 October 2023 and is held in the name of the Trustee. The value of the contract

is recognised as a UK scheme asset for the purposes of IAS 19. In line with IAS 19.115, for a buy-in insurance contract such as this,

the income received from the policy matches exactly the benefit payments due to the members it is covering, the value attributable

to the contract to be recognised as an asset is the equivalent IAS 19 value of the corresponding liabilities.

Notes continued

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23. Employee benefits continued

The latest full actuarial valuation of the UK scheme was carried out as at 30 September 2024 and updated to 30 June 2026 by

a qualified independent actuary.

The latest full actuarial report prepared in September 2024 showed a surplus of £3.2m, which is based on funding to self-sufficiency

and uses prudent assumptions. IAS 19 requires best estimate assumptions to be used, resulting in the IAS 19 net surplus being

higher than the actuarial surplus.

The previous deficit funding plan for the UK scheme has ended, as the actuarial deficit (calculated on a self-sufficiency basis)

has been eliminated. The net book value of properties subject to fixed charges under this agreement at 30 June 2026 was £nil

(2025: £48.7m). The charge was released on 5 January 2026, following completion of the latest full actuarial valuation for the

period ending 30 September 2024.

The Renishaw (Ireland) Limited pension fund

The Renishaw (Ireland) Limited pension fund (Ireland scheme) was closed to new members on 31 December 2007, at which time

the scheme ceased any future accrual for existing members.

At 30 June 2026, the Ireland scheme was in a net asset position of £5.5m (2025: £3.8m), and is therefore presented in non-current

assets. The rules of the Ireland scheme do not restrict the recognition of any surplus.

Under the Ireland defined benefit pension scheme deficit funding plan, a property owned by Renishaw Ireland (DAC) is subject to

a registered fixed charge to secure the Ireland defined benefit pension scheme’s deficit.

The Renishaw GmbH pension fund

The Renishaw GmbH pension fund (Germany scheme) was closed to new members on 30 June 2012. The scheme is open to future

accrual for existing members.

At 30 June 2026, the Germany scheme had an actuarial value for liabilities of £14.6m (2025: £21.1m), which is presented gross

in non-current liabilities. The Germany scheme does not have any plan assets, rather a reimbursement right asset of £14.6m

(2025: £12.9m) which is separately disclosed in the Consolidated balance sheet in assets. The Germany scheme presented

a surplus of £0.3m (2025: £8.2m deficit) before an asset ceiling adjustment recognised to restrict the reimbursement right asset.

Other plans

Other plans of the Group include various pension plans, other post-employment and long-term employee benefit plans in several

countries of operation. Some of the plans are funded, with assets backing the obligations, whilst others are operated on an unfunded

basis. The benefits provided, the approach to funding and the legal basis of the plans reflect their local territories.

The results of the most recent actuarial valuations for the various plans have been updated to 30 June 2026 to determine the

amounts to be included in the Group’s consolidated financial statements.

Assumptions

Major assumptions used by actuaries for the UK, Ireland and Germany schemes were:

		30 June 2026			30 June 2025
	UK	Ireland	Germany	UK	Ireland	Germany
	scheme	scheme	scheme	scheme	scheme	scheme
Discount rate	5.90%	4.30%	4.40%	5.55%	4.00%	3.90%
Rate of increase in pension payments	2.85%	2.25%	2.30%	2.85%	2.25%	2.00%
Rate of increase in salary	n/a	n/a	2.80%	n/a	n/a	2.50%
Inflation rate (RPI)	3.05%	2.25%	n/a	3.05%	2.25%	n/a
	2.05% 1			2.05% 1
Inflation rate (CPI)	3.05% 2	2.25%	2.30%	3.05% 2	2.25%	2.00%
Retirement age	65	65	67	65	65	67
Scheme duration	14	22	17	15	22	19

1 Pre-2030 2 Post-2030

The life expectancies from the retirement age for these schemes implied by the mortality assumption at age 65 and 45 are:

		30 June 2026			30 June 2025
	UK	Ireland	Germany	UK	Ireland	Germany
	scheme	scheme	scheme	scheme	scheme	scheme
Male currently aged 65	22.3	21.7	n/a	21.1	21.0	n/a
Female currently aged 65	24.5	24.0	n/a	23.5	23.5	n/a
Male currently aged 45	23.0	22.7	n/a	21.8	21.9	n/a
Female currently aged 45	25.3	25.1	n/a	24.4	24.6	n/a

For the UK scheme, the mortality assumption used for FY2026 is the SAPS4 base tables and CMI 2025 model, with long-term

improvements of 1% per annum. Adjustments have been made to both the core base tables and CMI 2025 model to allow for the

scheme’s membership profile and best estimate assumptions of future mortality improvements.

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FINANCIAL STATEMENTS

23. Employee benefits continued

Assets and liabilities recognised in the Consolidated balance sheet

The assets and liabilities in the defined benefit pension schemes were:

	30 June	% of	30 June	% of
	2026	total	2025	total
	£’000	assets	£’000	assets
Market value of assets:
Insurance contract	127,680	81	118,158	83
Index-linked gilts	8,709	6	5,815	4
Credit and fixed income funds	7,635	5	7,924	6
Equities	5,614	4	4,295	3
Multi-asset funds	4,582	3	4,640	3
Cash and other	3,712	1	781	1
	157,932	100	141,613	100
Actuarial value of liabilities	(166,005)	–	(151,301)	–
Deficit in the schemes	(8,073)	–	(9,688)	–
Deferred tax thereon	3,326	–	3,748	–

Note C.46 gives the analysis of the UK scheme.

The reimbursement right asset is not classified as a plan asset as it is not a qualifying insurance policy. It is not included in the

table above.

Equities are held in externally-managed funds and primarily relate to UK and US equities. Credit and fixed income funds, and

index-linked gilts, relate to UK, US and Eurozone government-linked securities, again held in externally-managed funds. The fair

values of these equity and fixed income instruments are determined using the bid price of the unitised investments, quoted by the

investment manager, at the reporting date and therefore represent level 2 of the fair value hierarchy defined in Note 25. Multi-asset

funds are also held in externally-managed funds, with active asset allocation to diversify growth across asset classes such as

equities, bonds and money-market instruments. The fair value of these funds is determined on a comparable basis to the equity

and fixed income funds, and therefore these funds are level 2 assets. Cash and other at 30 June 2026 mostly comprises amounts

held in a Sterling and Swiss Franc bank account, in which the principal is preserved and same day liquidity is available.

No scheme assets are directly invested in the Group’s own equity.

Movements in the schemes’ assets, liabilities and reimbursement right

The net surplus of the Group’s defined benefit pension schemes, including the reimbursement right, on an IAS 19 basis,

has increased from £3.2m at 30 June 2025 to £6.5m at 30 June 2026, primarily as a result of actuarial movements.

The movements in the schemes’ assets, liabilities and reimbursement right were:

	Reimbursement
	right	Assets	Liabilities	Total
Year ended 30 June 2026	£’000	£’000	£’000	£’000
Balance at the beginning of the year	12,909	141,613	(151,301)	3,221
Transfers in	–	1,300	(6,520)	(5,220)
Contributions paid by employer	1,769	1,090	–	2,859
Contributions paid by employee	–	68	(68)	–
Current service cost	–	–	(1,160)	(1,160)
Past service cost	–	–	(202)	(202)
Interest on pension schemes	502	7,586	(7,709)	379
Remeasurement gain/(loss) under IAS 19	(325)	14,622	(6,605)	7,692
Scheme administration expenses	–	(1,076)	–	(1,076)
Benefits paid	(289)	(7, 271)	7,560	–
Balance at the end of the year	14,566	157,932	(166,005)	6,493

‘Transfers in’ represent other plans which were previously recognised in Other payables, within Holiday pay and retirement accruals.

The prior period comparative has not been restated as the schemes are not material to the Group.

Notes continued

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23. Employee benefits continued

	Reimbursement
	right	Assets	Liabilities	Total
Year ended 30 June 2025	£000	£’000	£’000	£’000
Balance at the beginning of the year	12,116	153,134	(163,638)	1,612
Contributions paid	–	162	–	162
Interest on pension schemes	–	7,4 65	(6,962)	503
Remeasurement gain/(loss) under IAS 19	1,498	(12,267)	13,546	2,777
Scheme administration expenses	(705)	(1,128)	–	(1,833)
Benefits paid	–	(5,753)	5,753	–
Balance at the end of the year	12,909	141,613	(151,301)	3,221

The analysis of the amount recognised in the Consolidated statement of comprehensive income and expense was:

	2026	2025
	£’000	£’000
Actuarial gain/(loss) arising from:
Changes in demographic assumptions	(2,887)	–
Changes in financial assumptions	9,057	14,857
Experience adjustment	(12,775)	187
Return on plan assets excluding interest income	13,961	(12,267)
Adjustment for the asset ceiling	336	–
Total amount recognised in the Consolidated statement of comprehensive income and expense	7,692	2,777

The cumulative amount of actuarial gains and losses recognised in the Consolidated statement of comprehensive income and

expense was a loss of £56.3m (2025: loss of £63.9m).

Sensitivity analysis for key assumptions

For the three schemes, a guide to the sensitivity of the value of the respective liabilities is as follows:

Approximate effect on liabilities	UK scheme	Ireland scheme	Germany scheme
Discount rate: Increase/decrease by 0.5%	-£9.3m/+£10.3m	-£1.1m/+£1.3m	-£1.1m/+£1.2m
Inflation: Increase/decrease by 0.5%	+£8.0m/-£6.9m	+£1.3m/-£1.1m	+£0.9m/-£0.8m
Mortality: Increased/decreased life by one year	+£3.9m/-£4.0m	+£0.3m/-£0.4m	n/a

Reimbursement right

The Group has recognised a reimbursement right in respect of its pension obligation for the Germany scheme. At 30 June 2026,

the value of the reimbursement right was £14.6m (2025: £12.9m). This asset relates to an insurance policy that reimburses the Group

for pension payments made to scheme members. The reimbursement right is not classified as a plan asset as it is not a qualifying

insurance policy. The insurance policy is held with a regulated insurer and covers a portion of the pension benefits payable under

the plan. The reimbursement right is considered virtually certain and has been measured at fair value.

Contingent liabilities

Benefits in the UK scheme are subject to a defined contribution (DC) underpin at the point of retirement or transfer out. Historically,

this has been allowed for in the accounts in a consistent manner to current administrative practice and the triennial funding

valuations. During the buy-in process, it was identified that the drafting of the DC underpin in the UK Fund Rules may require that the

DC underpin is applied in a manner which is different to the current administrative practice. The Trustee and Company are currently

seeking legal clarification and advice on this issue, with the intention of correcting the Rules to match current administrative practice.

No provision for this matter has been made at 30 June 2026, as management continue to assess that it is unlikely that there will be

an increase in liabilities, and due to the uncertainty of legal treatment and therefore any potential impact on liabilities.

In June 2023, the High Court ruled that certain historic amendments made to the rules of the Virgin Media pension scheme were

invalid without the scheme’s actuary having provided the associated Section 37 certificates. This judgment was upheld by the Court

of Appeal in July 2024, which has implications on other schemes that were contracted-out on a salary-related basis, and made

amendments between 6 April 1997 and 5 April 2016. The UK scheme was contracted out until 5 April 2007 and amendments were

made during the relevant period and as such the ruling could have implications for the UK scheme. Under the Pensions Schemes

Act 2026, which came into force on 29 April 2026, the Trustees will be able to retrospectively validate amendments if required.

The Company and the Trustees have commenced a review of all amending documents between 6 April 1997 and 5 April 2016 for

the scheme to determine whether proper procedures were undertaken at the time of the amendments by the Trustees, actuaries

and administrators. The Trustee and Company continue to seek legal advice on this matter and will act appropriately to obtain

retrospective actuarial confirmation where appropriate. At the date of approving these financial statements, the possible

implications, if any, for the UK scheme not having all Section 37 certificates have not been investigated in detail. Accordingly, no

amendments for this matter have been included in the IAS 19 actuarial valuation as the impact, if any, cannot be reliably assessed.

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FINANCIAL STATEMENTS

24. Share-based payments

During FY2026, the Group provided share-based payment arrangements to certain employees in accordance with the

Renishaw plc deferred annual equity incentive plan. As set out in the Remuneration Committee’s Chair statement on

page 90, we will be seeking shareholder approval for a new share plan at the 2026 AGM to enable the Group to grant

Long-term incentive plan awards and deferred bonus share awards to senior leaders in the business.

Accounting policy

Renishaw shares are granted in accordance with the Renishaw plc deferred annual equity incentive plan (DAEIP). Other than

DAEIP awards granted to Executive Directors, the share awards are subject only to continuing service of the employee and are

equity settled. For Executive Directors, if an opportunity of more than 150% of salary is awarded, half of the deferred shares will

be subject to continued employment, while the other half will be subject to continued employment and the enhanced recovery

provisions described in the Committee Chair’s statement. The fair value of the awards at the date of grant, which is estimated to

be equal to the market value, is charged to the Consolidated income statement on a straight-line basis over a three-year vesting

period, with appropriate adjustments made to reflect expected or actual forfeitures. The corresponding credit is to Other reserve.

The number of shares to be awarded is calculated by dividing the relevant amount of annual bonus under the DAEIP by the

average price of a share during a period determined by the Remuneration Committee. The period cannot be more than five

dealing days, ending on the dealing day before the award date. These shares must be purchased on the open market and

cannot be satisfied by issuance of new shares or transfer of existing treasury shares.

The Renishaw Employee Benefit Trust (EBT) is responsible for purchasing shares on the open market on behalf of the Company

to satisfy the DAEIP awards. These are held by the EBT until transferring to the employee, which will normally be on the third

anniversary of the award date, subject to continued employment. Malus and clawback provisions can be operated by the

Committee within three years of the award date. During the vesting period, no dividends are payable on the shares. However,

upon vesting, employees will be entitled to additional shares or cash, equivalent to the value of dividends paid on the awarded

shares during this period. This amount is accrued over the vesting period.

Own shares held are recognised as an element in equity until they are transferred at the end of the vesting period, and such

shares are excluded from earnings per share calculations.

The total cost recognised in the FY2026 Consolidated income statement in respect of the DAEIP was £0.5m (2025: £0.8m).

See Note 26 for reconciliations of amounts recognised in Equity.

Shares equivalent to £2.3m (2025: £0.9m) are to be awarded in respect of FY2026. See the Directors’ Remuneration Report for

further details.

Notes continued

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25. Financial instruments

The Group has exposure to credit risk, liquidity risk and market risk arising from its use of financial instruments.

This note presents information about the Group’s exposure to these risks, along with the Group’s objectives, policies

and processes for measuring and managing the risks.

Accounting policy

The Group measures financial instruments such as forward exchange contracts at fair value at each balance sheet date

in accordance with IFRS 9 ‘Financial Instruments’. Fair value, as defined by IFRS 13 ‘Fair Value Measurement’, is the price that

would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the

measurement date. This note provides detail on the IFRS 13 fair value hierarchy.

Trade and other current receivables are initially recognised at fair value and are subsequently held at amortised cost less any

allowance for expected credit losses according to IFRS 9. Trade and other current payables are initially recognised at fair value

and are subsequently held at amortised cost.

Financial liabilities in the form of loans are initially recognised at fair value and are subsequently held at amortised cost.

Financial liabilities are assessed for embedded derivatives and whether any such derivatives are closely related. If not closely

related, such derivatives are accounted for at fair value in the Consolidated income statement.

Foreign currency derivatives are used to manage risks arising from changes in foreign currency rates relating to overseas sales

and foreign currency-denominated assets and liabilities. The Group does not enter into derivatives for speculative purposes.

Foreign currency derivatives are stated at their fair value, being the estimated amount that the Group would pay or receive to

terminate them at the balance sheet date, based on prevailing foreign currency rates.

Changes in the fair value of foreign currency derivatives which are designated and effective as hedges of future cash flows are

recognised in Other comprehensive income and in the Cash flow hedging reserve, and subsequently transferred to the carrying

amount of the hedged item or the Consolidated income statement. Realised gains or losses on cash flow hedges are therefore

recognised in the Consolidated income statement within revenue in the same period as the hedged item.

Hedge accounting is discontinued when the hedging instrument expires or when the hedging instrument or hedged item

no longer qualifies for hedge accounting. If the forecast transaction is still expected to occur, but is no longer highly probable,

the cumulative gain or loss in the cash flow hedge reserve remains in that reserve until the transaction occurs. If the forecast

transaction is no longer expected to occur, the cumulative gain or loss in the cash flow hedge reserve is immediately reclassified

to the Consolidated income statement.

Changes in fair value of foreign currency derivatives, which are ineffective or do not meet the criteria for hedge accounting in

IFRS 9, are recognised in the Consolidated income statement within Gains/losses from the fair value of financial instruments.

In addition to derivatives held for cash flow hedging purposes, the Group uses short-term derivatives not designated as hedging

instruments to offset gains and losses from exchange rate movements on foreign currency-denominated assets and liabilities.

Gains and losses from currency movements on underlying assets and liabilities, realised gains and losses on these derivatives,

and fair value gains and losses on outstanding derivatives of this nature are all recognised in Financial income and expenses

in the Consolidated income statement.

Fair value

There is no significant difference between the fair value of financial assets and financial liabilities and their carrying value in the

Consolidated balance sheet. All financial assets and liabilities are held at amortised cost, apart from the forward foreign currency

exchange contracts, which are held at fair value, with changes going through the Consolidated income statement unless the

contracts are subject to hedge accounting.

The fair values of the forward foreign currency exchange contracts have been calculated by a third-party expert, discounting

estimated future cash flows on the basis of market expectations of future exchange rates, representing level 2 in the IFRS 13 fair

value hierarchy. The IFRS 13 level categorisation relates to the extent the fair value can be determined by reference to comparable

market values. The classifications are: level 1 where instruments are quoted on an active market; level 2 where the assumptions

used to arrive at fair value have comparable market data; and level 3 where the assumptions used to arrive at fair value do not have

comparable market data.

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FINANCIAL STATEMENTS

25. Financial instruments continued

Credit risk

The Group’s liquid funds are substantially held with banks with high credit ratings and the credit risk relating to these funds is

therefore limited. The Group carries a credit risk relating to non-payment of trade receivables by its customers. The Group’s policy

is that credit evaluations are carried out on all new customers before credit is given above certain thresholds. Risk is spread across

a large number of customers with no significant concentration on one customer or one geographical area. The Group establishes

an allowance for impairment in respect of trade receivables where recoverability is considered doubtful.

An analysis by currency of the Group’s financial assets at the year end is as follows:

	Trade and finance					Cash and cash equivalents
	lease receivables		Other receivables			and bank deposits
	2026	2025	2026	2025	2026	2025
Currency	£’000	£’000	£’000	£’000	£’000	£’000
Pound Sterling	15,788	17,076	29,650	30,438	229,882	223,491
US Dollar	84,894	50,034	9,975	970	9,235	11,322
Euro	32,764	30,669	3,712	3,525	21,784	5,153
Chinese Yuan	11,910	13,592	1,001	512	14,741	17,069
Japanese Yen	8,992	13,181	81	136	4,788	2,730
Other	25,157	21,057	5,533	5,151	10,520	13,881
	179,505	145,609	49,952	40,732	290,950	273,646

The above Trade and finance lease receivables, Other receivables and Cash and cash equivalents and bank deposits are

predominantly held in the functional currency of the relevant entity, with the exception of £26.1m (2025: £13.2m) of US Dollar-

denominated trade receivables being held in Renishaw (Hong Kong) Limited and £1.3m (2025: £1.6m) of Euro-denominated

trade receivables being held in Renishaw UK Sales Limited, along with some foreign currency cash balances which are of

a short-term nature.

The ageing of trade receivables past due at the end of the year was:

	2026	2025
	£’000	£’000
Past due zero to one month	20,155	13,601
Past due one to two months	9,039	5,935
Past due more than two months	10,421	8,538
Balance at the end of the year	39,615	28,074

Movements in the provision for impairment of trade receivables during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	5,894	4,479
Changes in amounts provided	5,015	3,215
Amounts used	(452)	(1,800)
Balance at the end of the year	10,457	5,894

The Group applies the simplified approach when measuring the expected credit loss for trade receivables, with a provision matrix

used to determine a lifetime expected credit loss.

For this provision matrix, trade receivables are grouped into credit risk categories, with category 1 being the lowest risk and

category 5 the highest. Risk scores are allocated to the customer’s country of operation, their type (such as distributor, end user and

OEM), their industry and the proportion of their debt that was past due at the year end. These scores are then weighted to produce

an overall risk score for the customer, with the lowest scores being allocated to category 1 and the highest scores to category 5.

The matrix then applies an expected credit loss rate to each category, with this rate being determined by adjusting the Group’s

historical credit loss rates to reflect forward-looking information.

Notes continued

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25. Financial instruments continued

Where certain customers have been identified as having a significantly elevated credit risk these have been provided for on

a specific basis. Both elements of expected credit loss are shown in the matrix below and have been shown separately so as not

to distort the expected credit loss rate.

	Risk category 1	Risk category 2	Risk category 3	Risk category 4	Risk category 5	2026	Total
Year ended 30 June 2026	£’000	£’000	£’000	£’000	£’000		£’000
Gross trade receivables	15,016	44,558	105,987	5,749	701		172,011
Expected credit loss rate	0.79%	0.86%	0.93%	1.00%	1.07%		0.89%
Expected credit loss allowance	119	382	968	57	7		1,533
Specific loss allowance	6	–	7, 352	1,566	–		8,924
Total loss allowance	125	382	8,320	1,623	7		10,457
Net trade receivables	14,891	44,176	97,667	4,126	694		161,554

	Risk category 1	Risk category 2	Risk category 3	Risk category 4	Risk category 5	2025	Total
Year ended 30 June 2025	£’000	£’000	£’000	£’000	£’000		£’000
Gross trade receivables	14,397	31,663	82,780	5,518	–		134,358
Expected credit loss rate	0.55%	0.61%	0.66%	0.71%	–		0.65%
Expected credit loss allowance	80	192	531	39	–		842
Specific loss allowance	–	–	4,730	322	–		5,052
Total loss allowance	80	192	5,261	361	–		5,894
Net trade receivables	14,317	31,471	77,519	5,157	–		128,464

Finance lease receivables are subject to the same approach as noted above for trade receivables.

Derivative assets are assessed with reference to the credit risk of the banks that are counterparties to the forward contracts.

Other receivables include mostly prepayments and indirect tax receivables. Prepayment balances are reviewed at each reporting

date to confirm that prepaid goods or services are still expected to be received, while tax balances are reviewed for recoverability.

Other receivables at the year end comprised:

	2026	2025
	£’000	£’000
Indirect tax receivable	13,403	10,959
Software maintenance	9,238	10,181
Bank interest receivable	3,436	4,790
Tariff refund receivable	8,556	–
Grants	1,130	885
Research and development tax credit recoverable	263	1,224
Contract assets	2,523	1,509
Other prepayments	11,403	11,18 4
Total other receivables	49,952	40,732

The maximum exposure to credit risk is £526.1m (2025: £482.2m), comprising the Group’s trade, finance and other receivables,

cash and cash equivalents and bank deposits, and derivative assets.

The maturities of non-current other receivables, being only derivatives, at the year end were:

	2026	2025
	£’000	£’000
Receivable between one and two years	1,652	7,878
	1,652	7,878

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FINANCIAL STATEMENTS

25. Financial instruments continued

Liquidity risk

Our approach to managing liquidity is to ensure, as far as possible, that we will always have sufficient liquidity to meet our liabilities

when due, without incurring unacceptable losses or risking damage to the Group’s reputation. We use monthly cash flow forecasts

on a rolling 12-month basis to monitor cash requirements.

With Cash and cash equivalents and bank deposits at 30 June 2026 totalling £291.0m, and £110.5m cash flows generated from

operating activities in the year, the Group remains in a strong liquidity position.

In respect of Cash and cash equivalents and bank deposits, the carrying value is materially the same as fair value because of the

short maturity of the bank deposits. Bank deposits are exposed to interest rate risk as both fixed and floating rates may fluctuate

over time, impacting the Group’s interest income. A decrease of 1% in interest rates would result in a reduction in interest income

of approximately £2.8m.

The contractual maturities of financial liabilities at the year end were:

				Contractual cash flows
	Carrying	Effect of	Gross
	amount	discounting	maturities	Up to 1 year	1-2 years	3-5 years
Year ended 30 June 2026	£’000	£’000	£’000	£’000	£’000	£’000
Trade payables	38,238	–	38,238	38,238	–	–
Other payables	68,000	–	68,000	68,000	–	–
Borrowings	1,986	44	2,030	694	684	652
Amounts payable to joint venture	15,948	–	15,948	15,948	–	–
Lease liabilities	11,518	2,827	14,345	4,708	3,144	6,493
Forward exchange contracts	1,113	–	1,113	1,073	40	–
	136,803	2,871	139,674	128,661	3,868	7,14 5

					Contractual cash flows
	Carrying	Effect of	Gross
	amount	discounting	maturities	Up to 1 year	1-2 years	3-5 years
Year ended 30 June 2025	£’000	£’000	£’000	£’000	£’000	£’000
Trade payables	25,943	–	25,943	25,943	–	–
Other payables	57,132	–	57,132	57,132	–	–
Borrowings	2,884	85	2,969	764	754	1,451
Amounts payable to joint venture	14,530	–	14,530	14,530	–	–
Lease liabilities	12,761	3,131	15,892	4,509	3,431	7,952
Forward exchange contracts	1,246	–	1,246	150	1,096	–
	114,496	3,216	117,712	103,028	5,281	9,403

Notes continued

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25. Financial instruments continued

Market risk

The Group operates in several foreign currencies with the majority of sales being made in these non-Sterling currencies, but with

most manufacturing being undertaken in the UK, Ireland and India.

A large proportion of sales are made in US Dollar, Euro and Japanese Yen. The Group enters into US Dollar, Euro and Japanese Yen

derivative financial instruments to manage its exposure to foreign currency risk, including:

i. forward foreign currency exchange contracts to hedge a significant proportion of the Group’s forecasted US Dollar, Euro and

Japanese Yen revenues over the next 24 months; and

ii. one-month forward foreign currency exchange contracts to offset the gains/losses from exchange rate movements arising from

foreign currency-denominated intragroup balances of the Company held in US Dollar, Euro, Japanese Yen and Canadian Dollar.

The amounts of foreign currencies relating to these forward contracts and options are, in Sterling terms:

	2026		2025
	Nominal value	Fair value	Nominal value	Fair value
	£’000	£’000	£’000	£’000
US Dollar	340,768	3,786	299,987	18,954
Euro	152,143	2,258	146,500	613
Japanese Yen	12,956	1,582	21,947	1,354
Canadian Dollar	4,670	63	5,133	56
	510,537	7,689	473,567	20,977

The following are the exchange rates which have been applicable during the financial year:

		2026			2025
	Average	Year end	Average	Average	Year end	Average
	forward	exchange	exchange	forward	exchange	exchange
Currency	contract rate	rate	rate	contract rate	rate	rate
US Dollar	1.27	1.32	1.34	1.28	1.37	1.30
Euro	1.14	1.16	1.15	1.14	1.17	1.19
Chinese Renminbi	n/a	9.00	9.33	n/a	9.80	9.35
Hong Kong Dollar	n/a	10.37	10.45	n/a	10.75	10.12
Japanese Yen	175	215	207	178	198	193
Canadian Dollar	n/a	1.88	1.85	n/a	1.87	1.82

Hedging

In relation to the forward currency contracts in a designated cash flow hedge, the hedged item is a layer component of forecast

sales transactions. Forecast transactions are deemed highly probable to occur and Group policy is to hedge around 75% of net

foreign currency exposure for USD, EUR and JPY up to two years. The hedged item creates an exposure to receive USD, EUR or

JPY, while the forward contract is to sell USD, EUR or JPY and buy GBP. Therefore, there is a strong economic relationship between

the hedging instrument and the hedged item. The hedge ratio is 100%, e.g. £10m nominal value of forward currency contracts are

used to hedge £10m of forecast sales. Fair value gains or losses on the forward currency contracts are offset by foreign currency

gain or losses on the translation of USD, EUR and JPY based sales revenue, relative to the forward rate at the date the forward

contracts were arranged. Foreign currency exposures in Hong Kong Dollar (HKD) and USD are aggregated and only USD forward

currency contracts are used to hedge these currency exposures. Sources of hedge ineffectiveness according to IFRS 9 Financial

Instruments include:

— changes in timing of the hedged item;

— reduction in the amount of the hedged sales considered to be highly probable;

— a change in the credit risk of Renishaw or the bank counterparty to the forward contract; and

— differences in assumptions used in calculating fair value.

No contracts became ineffective during the year. A decrease of 10% in the highly probable forecasts would result in no

ineffective contracts.

From July 2026 we updated our Group hedging policy. Going forward, we will use HKD forward currency contracts to hedge HKD

foreign currency exposure, instead of using USD forward currency contracts. We have removed our previous forward currency

contract rate caps which could result in unhedged periods. This increases certainty over forward positions, although we maintain

some flexibility over coverage based on management’s judgement over prevailing forward rates. We will hedge net foreign currency

exposure, subject to a minimum and maximum net foreign currency coverage of 30% and 60% respectively between one and two

years and 60% and 90% respectively in the period up to one year, for USD, HKD, EUR and JPY.

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FINANCIAL STATEMENTS

25. Financial instruments continued

For both the Group and the Company, the following table details the fair value of forward foreign currency derivatives according to

the categorisation of instruments noted on page 175:

	2026		2025
	Nominal value	Fair value	Nominal value	Fair value
	£’000	£’000	£’000	£’000
Forward currency contracts in a designated cash flow hedge (i)
Non-current derivative assets	171,644	1,652	137,417	7,878
Current derivative assets	243,654	6,952	218,870	13,606
Current derivative liabilities	2,863	(419)	19,339	(37)
Non-current derivative liabilities	11,180	(40)	33,559	(1,096)
	429,341	8,145	409,185	20,351
(Losses)/gains recognised in the Consolidated statement of comprehensive income and expense	–	(12,208)	–	5,804
Forward currency contracts not in a designated cash flow hedge (ii)
Current derivative assets	27, 253	198	56,873	739
Current derivative liabilities	53,943	(654)	7,509	(113)
	81,196	(456)	64,382	626
(Losses)/gains recognised in Financial income/(expense) in the Consolidated income statement	–	(895)	–	3,360
Total forward contracts and options
Non-current derivative assets	171,644	1,652	137,417	7,878
Current derivative assets	270,907	7,150	275,743	14,345
Current derivative liabilities	56,806	(1,073)	26,848	(150)
Non-current derivative liabilities	11,180	(40)	33,559	(1,096)
	510,537	7,689	473,567	20,977

The total recognised in Revenue in the Consolidated income statement relating to cash flow hedges previously recognised through

Other comprehensive income amounted to £11.3m gain (2025: £19.2m gain).

For the Group’s foreign currency forward contracts at the balance sheet date, if Sterling appreciated by 5% against the US Dollar,

Euro, Japanese Yen and Canadian Dollar, this would increase pre-tax equity by £20.2m and increase profit before tax by £3.9m,

while a depreciation of 5% would decrease pre-tax equity by £22.4m and decrease profit before tax by £4.2m.

Notes continued

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26. Share capital and reserves

The Group defines capital as being the equity attributable to the shareholders of the Company, which is captioned on the

Consolidated balance sheet. The Board’s policy is to maintain a strong capital base, ensuring the security of the Group,

and to maintain a balance between returns to shareholders, with a progressive dividend policy. This note presents figures

relating to this capital management, along with an analysis of all elements of Equity attributable to shareholders and

non-controlling interests.

Share capital

		2026	2025
		£’000	£’000
72,788,543	allotted, called-up and fully paid ordinary shares of 20p each	14,558	14,558

The ordinary shares are the only class of share in the Company. Holders of ordinary shares are entitled to vote at general meetings

of the Company and receive dividends as declared. The Articles of Association of the Company do not contain any restrictions on

the transfer of shares nor on voting rights.

Dividends paid

Dividends paid comprised:

	2026	2025
	£’000	£’000
FY2025 final dividend paid of 61.3p per share (2024: 59.4p)	44,619	43,205
Interim dividend paid of 16.8p per share (2025: 16.8p)	12,223	12,219
Total dividends paid	56,842	55,424

A final dividend of 6 5. 2p per share is proposed in respect of FY2026, which will be payable on 3 December 2026 to shareholders

on the register on 30 October 2026.

A special dividend of £51.0m or 70.0p per share has been approved by the Directors as an interim dividend. The dividend will

be paid on 3 December 2026 to shareholders on the register on 30 October 2026. Shareholder approval for this special dividend

is not required.

Own shares held

The EBT is responsible for purchasing shares on the open market on behalf of the Company to satisfy DAEIP awards (see Note 24).

Own shares held are recognised as an element in equity until they are transferred at the end of the vesting period.

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	(2,140)	(2,963)
Acquisition of own shares	(979)	(154)
Disposal of own shares on vesting of awards	2,025	977
Balance at the end of the year	(1,094)	(2,140)

In December 2024, 4,902 shares were purchased on the open market by the EBT at a price of £31.40, costing a total of £153,923.

The fair value of the awards at the grant date, being 23 October 2024, was £162,177. A total of 656 vested early in FY2025, based

on the performance conditions being met. The remaining shares will vest on 23 October 2027, with no forfeitures expected at

30 June 2026.

In December 2025, 27,437 shares were purchased on the open market by the EBT at a price of £35.79 costing a total of £978,749.

The fair value of the award at the grant date, being 22 October 2025, was £997,194. Total shares of 586 vested on 31 March 2026,

based on the performance conditions being met. Total shares of 1,747 will vest on 31 March 2027, with the remaining shares of

25,104 vesting on 22 October 2028. No forfeitures are expected at 30 June 2026.

Other reserve

The other reserve relates to share-based payments charges according to IFRS 2 in relation to the DAEIP, along with historical

amounts relating to investments in subsidiary undertakings not eliminated on consolidation.

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	1,193	1,380
Disposal of own shares on vesting of awards	(2,025)	(977)
Share-based payments charge in respect of awards	491	790
Balance at the end of the year	(341)	1,193

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FINANCIAL STATEMENTS

26. Share capital and reserves continued

Currency translation reserve

The currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of

the overseas operations and currency movements on intragroup loan balances classified as net investments in overseas operations.

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	(3,646)	2,480
Loss on net assets of foreign currency operations	(473)	(6,295)
Loss in the year relating to subsidiaries	(473)	(6,295)
Currency exchange differences relating to joint ventures	190	169
Balance at the end of the year	(3,929)	(3,646)

Cash flow hedging reserve

The cash flow hedging reserve, for both the Group and the Company, comprises all foreign exchange differences arising from the

valuation of forward exchange contracts which are effective hedges and mature after the year end. These are valued on a mark-to-

market basis, are accounted for in Other comprehensive income and expense and accumulated in Equity, and are recycled through

the Consolidated income statement and Company income statement when the hedged item affects the income statement, or when

the hedging relationship ceases to be effective. See Note 25 for further detail.

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	15,264	10,911
Gain on contract maturity recognised in revenue during the year	(11,315)	19,176
Revaluations during the year	(893)	(13,372)
Deferred tax movement	3,052	(1,451)
Balance at the end of the year	6,108	15,264

Non-controlling interest

Movements during the year were:

	2026	2025
	£’000	£’000
Balance at the beginning of the year	(577)	(577)
Balance at the end of the year	(577)	(577)

The non-controlling interest represents the minority shareholdings in Renishaw Diagnostics Limited – 7.6%.

27. Capital commitments

At the end of a financial year, we typically have obligations to make payments in the future, for which no provision

is made in the financial statements. We have committed to renovating and expanding a warehouse in Germany, which

includes expenditure on sustainability initiatives, enhancements to our Miskin manufacturing facility and capital

equipment to support manufacturing output.

Authorised and committed capital expenditure at the end of the year:

	2026	2025
	£’000	£’000
Freehold land and buildings	9,312	13,856
Plant and equipment	11,015	6,411
Motor vehicles	124	129
Total committed capital expenditure	20,451	20,396

Notes continued

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28. Related parties

The Group reports transactions with related parties, which mostly comprise our joint venture company.

Joint ventures and other related parties had the following transactions and balances with the Group:

	2026	2025
	£’000	£’000
Purchased goods and services from the Group during the year	906	219
Sold goods and services to the Group during the year	27,425	22,794
Interest paid from the Group during the year	282	371
Paid dividends to the Group during the year	957	1,500
Amounts owed to the Group at the year end	210	223
Amounts owed by the Group at the year end	19,638	17,462

Amounts owed by the Group include a 14-day notice deposit agreement with RLS for EUR 18.5m (£15.9m equivalent) as at 30 June

2026 (FY2025: £14.5m); see Note 13 for further details. The total interest payable on amounts owed to joint ventures during the year

was £0.3m (FY2025: £0.4m). There were no bad debts relating to related parties written off during FY2026 or FY2025.

Purchased goods and services from the Group during the year include an operating lease arrangement with McMurtry Automotive

Limited for a property owned by the Group. The operating lease commenced on 1 April 2025 and has a 10-year term. The rental

income is £187,500 per annum. The property is classified as investment properties in the Consolidated balance sheet, with the

rental income and direct operating expenses recognised in Consolidated income statement. At 30 June 2026, rental income of

£187,500 (FY2025: £46,875) has been recognised, with no amounts owed to the Group.

As announced on 26 November 2025 the families of the Company’s founders – the late Sir David McMurtry and current Non-executive

Director John Deer – established a joint family holding company, Deltam Holdings Limited (Deltam), to hold 50.25% of the issued

share capital of Renishaw. Deltam is therefore a controlling shareholder for the purposes of the UKLRs. See page 123 of the

Governance Report for further details in relation to this.

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FINANCIAL STATEMENTS

29. Alternative performance measures

In accordance with Renishaw’s alternative performance measure (APM) policy and ESMA Guidelines on Alternative

Performance Measures (2015), this section defines non-IFRS measures that we believe give readers additional useful

and comparable views of our underlying performance.

Key judgement – Whether items are appropriate to exclude from adjusted measures

Our APM policy allows us to adjust for ‘infrequently occurring events that can significantly affect profit and earnings’. This year,

we’ve had to carefully consider the nature and intention of some events and transactions, to determine whether they should be

‘adjusted for’.

We continue to report Revenue at constant exchange rates, Adjusted profit before tax, Adjusted profit after tax, Adjusted earnings

per share, Adjusted operating profit (including by segment), Adjusted operating profit at constant exchange rates, Adjusted cash

flow conversion from operating activities, and Return on invested capital as APMs. These are calculated consistently with previous

years, except for Adjusted cash flow conversion from operating activities and Return on invested capital. Adjusted cash flow

conversion from operating activities now adjusts for the cash effect of the adjusting items. The cash impact of adjusting items on

previously reported metrics is not material and therefore has not been restated. Return on invested capital has been updated to

reflect how the Board monitors efficiency in allocating capital to profitable activities, with the comparatives restated. Adjusted

operating profit by segment has been represented following the reporting segment change (see Note 2).

Aside from Revenue at constant exchange rates, all other APMs exclude infrequently occurring events which impact our financial

statements, recognised according to applicable IFRS, that we believe should be excluded from these APMs to give readers

additional useful and comparable views of our underlying performance.

Revenue at constant exchange rates is defined as revenue recalculated using the same rates as were applicable to the previous

year and excluding forward contract gains and losses.

	2026	2025
Revenue at constant exchange rates:	£’000	£’000
Statutory revenue as reported	815,779	713,044
Adjustment for forward contract (gains)/losses	(11,315)	(19,176)
Adjustment to restate current year at previous year exchange rates	9,759	–
Revenue at constant exchange rates	814,223	693,868
Year-on-year revenue growth at constant exchange rates	17.3%	n/a

Year-on-year revenue growth at constant exchange rates for FY2025 was 3.7%.

Adjusted profit before tax, Adjusted profit after tax, Adjusted earnings per share and Adjusted operating profit are defined as the

profit before tax, profit after tax, earnings per share and operating profit after excluding some or all of the following:

— costs relating to the cost reduction programme (a);

— costs relating to the loss of office payable to an Executive Director (b);

— costs relating to the closure of the drug delivery business (c);

— Other interest payable related to liabilities recognised for historical and non-recurring tax matters (d); and

— Taxation prior year adjustment related to historical and non-recurring tax matters (d).

a) Restructuring costs, where applicable during the year, are excluded from adjusted measures on the basis that they do not

frequently recur. In FY2025, the Group initiated a cost reduction programme to achieve labour cost savings. The cost of the

voluntary and compulsory redundancies has been recognised in FY2026 based on relevant accounting standards. The Group

has recognised redundancy payments of £14.9m. The amounts have been recognised in Cost of sales, Distribution expenditure

and Administrative expenditure within the Consolidated income statement.

b) There may be other items which do not frequently recur, and which it may be appropriate to exclude from adjusted measures.

The Group Finance Director stepped down from the position on the 31 December 2025. The Group recognised costs related

to the loss of office of £2.0m in the period, as detailed on page 121 of the Directors’ Remuneration Report. As the loss of office

does not relate to current year trading performance, the amounts have been excluded from adjusted measures. The amounts

have been recognised in Administrative expenses within the Consolidated income statement.

c) Restructuring costs, where applicable during the year, are excluded from adjusted measures on the basis that they do not

frequently recur. In FY2025, the Group made the decision to close the drug delivery business. In FY2026, the Group incurred

further costs, following the decision to sell the drug delivery business. The Group has recognised income of £0.3m related to

the sale, and a loss on disposal of intangible assets of £0.9m. The amounts have been recognised in Cost of sales within the

Consolidated income statement.

d) There may be other items which do not frequently recur, and which it may be appropriate to exclude from adjusted measures.

During FY2026, the Group recognised net interest charge of £0.4m and a Taxation release of £2.6m relating to historical and

non-recurring tax matters. The tax matters relate to specific legacy arrangements which we would not expect to recur.

Applicable accounting standards require a provision for tax and the associated interest, however we continue to seek resolution

to these matters which would reduce these amounts. As the historical and non-recurring tax matters do not relate to current year

trading performance, the amounts have been excluded from adjusted measures. The amounts have been recognised in Financial

income and expenses and Income tax expense within the Consolidated income statement.

Notes continued

180

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CONTENTS

29. Alternative performance measures continued

	2026	2025
Adjusted profit before tax:	£’000	£’000
Statutory profit before tax	149,964	118,000
Cost reduction programme	14,925	–
– reported in production costs	2,859	–
– reported in engineering costs	6,110	–
– reported in distribution costs	3,350	–
– reported in administrative expenses	2,606	–
Loss of office payable to Executive Director	1,980	–
– reported in administrative expenses	1,980	–
Closure of drug delivery business	666	2,059
– reported in production costs	(250)	–
– reported in engineering costs	916	2,059
Closure of the Edinburgh research facility	–	2,320
– reported in engineering costs	–	2,320
Other interest payable on historical and non-recurring tax matters	419	4,852
– reported in financial income	(2,450)	–
– reported in financial expenses	2,869	4,852
Adjusted profit before tax	167,954	127,231

	2026	2025
Adjusted profit after tax:	£’000	£’000
Statutory profit after tax	118,9 60	83,757
Cost reduction programme (net of tax)	11,301	–
Loss of office payable to Executive Director (net of tax)	1,485	–
Closure of drug delivery business (net of tax)	500	1,544
Closure of Edinburgh research facility (net of tax)	–	1,740
Other interest payable on historical and non-recurring tax matters (net of tax)	1,031	4,026
Prior year adjustment taxation charge on historical and non-recurring tax matters	(2,584)	9,15 4
Adjusted profit after tax	130,693	100,221

	2026	2025
Adjusted earnings per share:	pence	pence
Statutory earnings per share	163.5	115.2
Cost reduction programme (net of tax)	15.5	–
Loss of office payable to Executive Director (net of tax)	2.0	–
Closure of drug delivery business (net of tax)	0.7	2.1
Closure of the Edinburgh research facility (net of tax)	–	2.4
Other interest payable on historical and non-recurring tax matters (net of tax)	1.4	5.5
Taxation prior year adjustments	(3.6)	12.6
Adjusted earnings per share	179.5	137.8

	2026	2025
Adjusted operating profit:	£’000	£’000
Statutory operating profit	135,325	107,8 8 5
Cost reduction programme	14,925	–
Loss of office payable to Executive Director	1,980	–
Closure of drug delivery business	666	2,059
Closure of the Edinburgh research facility	–	2,320
Other interest payable on historical and non-recurring tax matters	–	–
Adjusted operating profit	152,896	112,264

181

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CONTENTS

FINANCIAL STATEMENTS

29. Alternative performance measures continued

Adjustments to segmental operating profit:

	2026	2025
Industrial Metrology	£’000	£’000
Operating profit	66,357	74,130
Cost reduction programme	9,098	–
Loss of office payable to Executive Director	1,244	–
Closure of Edinburgh research facility	–	1,378
Adjusted Industrial Metrology operating profit	76,699	75,508

	2026	2025
Position Measurement	£’000	£’000
Operating profit	67, 23 0	46,010
Cost reduction programme	3,833	–
Loss of office payable to Executive Director	416	–
Closure of Edinburgh research facility	–	618
Adjusted Position Measurement operating profit	71,479	46,628

	2026	2025
Specialised Technologies	£’000	£’000
Operating profit	1,738	(12,255)
Cost reduction programme	1,994	–
Loss of office payable to Executive Director	320	–
Closure of drug delivery business	666	2,059
Closure of Edinburgh research facility	–	324
Adjusted Specialised Technologies operating profit	4,718	(9,872)

Adjusted operating profit at constant exchange rates is defined as Adjusted operating profit recalculated using the same rates as

applied to the previous year and excluding forward contract gains and losses.

	2026	2025
Adjusted operating profit at constant exchange rates:	£’000	£’000
Adjusted operating profit	152,896	112,264
Adjustment for forward contract (gains)/losses	(11,315)	(19,176)
Adjustment to restate current year at previous year exchange rates	9,800	–
Adjusted operating profit at constant exchange rates	151,381	93,088
Year-on-year adjusted operating profit increase at constant exchange rates	62.6%	–

For FY2025 year-on-year adjusted operating profit at constant exchange rates was an increase of 1.2%.

Notes continued

182

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CONTENTS

29. Alternative performance measures continued

Adjusted cash flow conversion from operating activities is calculated as Adjusted cash flow from operating activities as a proportion

of Adjusted operating profit. This is useful for the Board to measure how efficient we are at converting operating profit into cash.

	2026	2025
Adjusted cash flow conversion from operating activities:	£’000	£’000
Statutory cash flow from operating activities	110,530	147,896
Cash effect of adjusting items	18,207	–
Income taxes paid	36,681	6,207
Proceeds from sale of property, plant and equipment and intangible assets	3,885	4,887
Purchase of property, plant and equipment and intangible assets	(48,288)	(56,558)
Adjusted cash flow from operating activities	121,015	102,432
Adjusted operating profit	152,896	112,264
Adjusted cash flow conversion from operating activities	79.1%	91.2%

Adjustments to operating profit as reported totalled £17.6m (2025: £4.4m), resulting in an operating cash outflow of £16.9m

(2025: £nil). The cash effect of adjusting items includes an operating cash outflow of £1.3m (2025: £nil) relating to FY2025

adjusting items.

Return on invested capital (ROIC) is the Adjusted profit after tax before net financial income (net of tax) as a percentage of the

Average invested capital in the year.

Invested capital is defined as total equity, excluding cash and cash equivalents, bank deposits, net employee benefits (including

reimbursement right asset and deferred tax), borrowings, amounts owed to joint ventures and lease liabilities. This is useful for the

Board to measure our efficiency in allocating capital to profitable activities. Average invested capital in the year is the average of the

invested capital at the beginning of the year and at the end of the year.

Adjusted profit after tax before net financial income is calculated as follows:

		Restated
	2026	2025
	£’000	£’000
Adjusted profit after tax	130,693	100,221
Net financial income (net of tax)	(8,574)	(8,845)
Adjusted profit after tax before net financial income	122,119	91,376

		Restated	Restated
	2026	2025	2024
Return on invested capital (ROIC):	£’000	£’000	£’000
Total equity	984,132	925,864	896,265
Less cash and cash equivalents	(148,301)	(87,420)	(122,293)
Less bank deposits	(142,649)	(186,226)	(95,542)
Add net employee benefits	8,073	9,688	10,504
Less reimbursement right	(14,566)	(12,909)	(12,116)
Add/(less) deferred tax on net retirement benefit & reimbursement right asset	898	(4)	(232)
Add borrowings	1,986	2,884	3,522
Add lease liabilities	11,518	12,761	15,022
Add amounts owed to joint ventures	15,948	14,530	8,475
Invested capital	717,039	679,168	703,605
Average invested capital	698,104	691,387	671,844
Return on invested capital	17.5%	13.2%	13.6%

183

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Notes continued

30. Business combinations

On 9 June 2026, the Group acquired the remaining 30% of the issued share capital of Metrology Software Products Limited (MSP),

which supplies software used in Renishaw products and standalone software. The Group previously held a 70% shareholding in

MSP, with MSP accounted for as a joint venture as the control requirements of IFRS 10 were not satisfied. The acquisition has

secured the supply of software for the benefit of the Group and our customers.

The total purchase consideration, being cash paid, was £2.2m for the remaining 30% of MSP. There is no contingent consideration.

The fair value of assets and liabilities recognised on acquisition is as follows:

	Fair value
	recognised on
	acquisition
	£’000
Cash	4,198
Property, plant & equipment	1,358
Investment properties	350
Trade receivables	677
Other receivables	120
Inventories	47
Current tax receivable	121
Trade payables	(59)
Other payables	(271)
Contract liabilities	(196)
Deferred tax	(2)
Net identifiable assets acquired	6,343
Goodwill	1,095
Net assets acquired	7,438

Acquisition costs of £0.1m arose as a result of the transaction. These have been recognised as part of administrative expenses in the

Consolidated income statement.

The Group’s share of net assets previously recognised as an investment in a joint venture was £4.8m (see Note 13). This amount

included £0.4m of Goodwill previously recognised against the investment in joint venture.

As the business combination has been recognised in stages, a fair value gain of £0.4m has been recognised in the Consolidated

income statement.

Goodwill of £1.1m has been recognised, being the value of expected synergies arising from the acquisition. Goodwill is allocated

entirely to the Industrial Metrology product line.

The acquisition accounting for MSP has taken place as if the Group acquired MSP on 30 June 2026 as the movement between the

acquisition date, 9 June 2026, and the year end was not material to the Group.

184

Renishaw plc Annual Report 2026

CONTENTS

notes

2026

£’000

2025

£’000

Assets

Property, plant and equipment C.32 227,348 2 27,712

Right-of-use assets C.33 2,574 2,788

Investment properties C.34 10,549 6,658

Long-term loans to Group undertakings C.35 16,838 5,937

Intangible assets C.36 40,525 39,278

Investments in subsidiaries C.37 302,614 299,028

Investments in joint ventures C.38 − 1,453

Employee benefits C.46 6,626 7,59 6

Derivatives 25 1,652 7,878

Total non-current assets 608,726 598,328

Current assets

Inventories C.40 116,410 100,610

Trade receivables C.41 65,810 43,669

Current tax 13,513 4,939

Other receivables C.42 26,243 27,172

Derivatives 25 7,031 13,777

Bank deposits 15 135,000 145,000

Cash and cash equivalents 63,942 15,621

Total current assets 427, 949 350,788

Current liabilities

Trade payables 27,858 17,4 8 0

Provisions C.43 3,089 1,859

Lease liabilities C.44 521 452

Derivatives 25 689 37

Other payables C.45 55,239 47,660

Total current liabilities 87,39 6 67,488

Net current assets 340,553 283,300

Non-current liabilities

Deferred tax liabilities C.39 39,442 40,616

Lease liabilities C.44 2,191 2,475

Long-term loans from Group undertakings 30 80

Derivatives 25 40 1,096

Total non-current liabilities 41,703 44,267

Total assets less total liabilities 9 07,576 8 37,361

Equity

Share capital C.47 14,558 14,558

Share premium 42 42

Own shares held 26 (1,094) (2,140)

Cash flow hedging reserve 26 6,108 15,264

Retained earnings 887,843 807,984

Other reserve 119 1,653

Total equity 907,576 8 37,361

The Company reported a profit for the financial year ended 30 June 2026 of £136,922,000 (2025: £74,402,000).

These financial statements were approved by the Board of Directors on 22 September 2026 and were signed on its behalf by:

Will Lee John Shipsey

Chief Executive Officer Chief Financial Officer

Company balance sheet

at 30 June 2026

Financial statements

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Year ended 30 June 2025

capital

£’000

premium

£’000

Own

held

£’000

Cash flow

hedging

reserve

£’000

Retained

earnings

£’000

Other

reserve

£’000

Total

£’000

Balance at 1 July 2024 14,558 42 (2,963) 10,911 789,315 1,840 813,703

Profit for the year – – – – 74,402 – 74,402

Other comprehensive income andexpense (net of tax)

Remeasurement of defined benefit pension scheme

assets/liabilities – – – – (309) – (309)

Changes in fair value of cash flow hedges – – – 4,353 – – 4,353

Total other comprehensive income andexpense – – – 4,353 (309) – 4,044

Total comprehensive income andexpense – – – 4,353 74,093 – 78,446

Share-based payments charge – – – – – 790 790

Distribution of own shares – – 977 – – (977) –

Purchase of own shares – – (154) – – – (154)

Dividends paid – – – – (55,424) – (55,424)

Balance at 30 June 2025 14,558 42 (2,140) 15,264 8 07,9 84 1,653 837,361

Year ended 30 June 2026

Profit for the year – – – – 136,922 – 136,922

Other comprehensive income andexpense (net of tax)

Remeasurement of defined benefit pension scheme

assets/liabilities – – – – (221) – (221)

Changes in fair value of cash flow hedges – – – (9,156) – – (9,156)

Total other comprehensive income andexpense – – – (9,156) (221) – (9,377)

Total comprehensive income andexpense – – – (9,156) 136,701 – 127,545

Share-based payments charge – – – – – 491 491

Distribution of own shares – – 2,025 – – (2,025) –

Purchase of own shares – – (979) – – – (979)

Dividends paid – – – – (56,842) – (56,842)

Balance at 30 June 2026 14,558 42 (1,094) 6,108 887,843 119 907,576

Company statement of changes in equity

for the year ended 30 June 2026

186

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CONTENTS

C.31. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation

tothe financial statements of the Company.

Basis of preparation

The financial statements have been prepared in accordance with the Companies Act 2006 and Financial Reporting Standard 101

‘ReducedDisclosure Framework’ (FRS 101).

The Company has applied the exemptions available under FRS 101 in respect of the following disclosures:

— a cash flow statement and related notes;

— comparative period reconciliations for share capital, tangible fixed assets and intangible fixed assets;

— disclosures in respect of transactions with wholly-owned subsidiaries;

— disclosures in respect of capital management;

— the effects of new but not yet effective IFRS; and

— disclosures in respect of the compensation of key management personnel.

As the consolidated financial statements of the Company include the equivalent disclosures, the Company has also taken the

exemptions under FRS 101 available in respect of certain disclosures required by IFRS 13 ‘Fair Value Measurement’ and the

disclosures required by IFRS 7 ‘Financial Instruments: Disclosures’.

The financial statements have been prepared on the historical cost basis, except for the fair value of financial instruments.

Historicalcost is based on the fair value of the consideration given in exchange for the assets. The principal accounting policies

areset out below.

Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own profit and

lossaccount.

Critical accounting judgements and estimation uncertainties

The areas of critical accounting judgements and estimation uncertainties that have a significant risk of causing a material adjustment

to the carrying amount of assets and liabilities in the next financial year for the Company are consistent with those oftheGroup,

(assummarised on page 147), in addition to those described below.

Expected credit loss

In accordance with IFRS 9, an expected credit loss model is used to determine a credit loss provision against the carrying value

ofcertain trade receivables. Application of this model to the loans to Group undertakings within the Company requires estimation

bymanagement. The provision has been calculated based on the size of the loan, the probability of default and the loss estimated

toarise if a default occurred.

Going concern

In preparing these financial statements, the Directors have adopted the going concern basis. The decision to adopt the going

concern basis was made as part of the assessment of the Group’s going concern status, details of which are set out on page 147.

Having considered the impact on the Company of the same factors set out on page 147, and the Company’s business model,

riskmanagement and principal risks, and significant financial resources and cash balances, the Directors have a reasonable

expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period to

31 December 2027, being the going concern period. Accordingly, they continue to adopt the going concern basis in preparing

these financial statements.

Investments

Investments in subsidiary and associated undertakings are stated at cost less any provision for permanent impairment losses.

Property, plant and equipment

Property, plant and equipment assets are stated at cost less accumulated depreciation. Depreciation is provided to write off the cost

of assets less their estimated residual value on a straight-line basis over their estimated useful economic lives as follows:

— freehold buildings, 50 years, and building infrastructure, 10 to 50 years;

— plant and equipment, 3 to 25 years;

— motor vehicles, 3 to 4 years; and

— no depreciation is provided on freehold land.

Notes to the Company financial statements

187

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

C.31. Accounting policies continued

Investment properties

Where property owned by the Company is held to earn rentals or for long-term capital growth it is recognised as investment property.

The Company has elected to value investment properties on a cost basis, initially comprising of the purchase price and any directly

attributable expenditure. Depreciation is provided to write off the cost of assets on a straight-line basis over their estimated useful

economic lives, being 50 years. Amounts relating to freehold land are not depreciated.

Right-of-use assets

At the commencement date of a lease arrangement, the Company recognises a right-of-use asset for the leased item and a lease

liability for any payments due. Right-of-use assets are initially measured at cost, being the present value of the lease liability plus

anyinitial costs incurred in entering the lease and less any incentives received. Right-of-use assets are subsequently depreciated

on a straight-line basis from the commencement date to the earlier of the end of the useful life or the end of the lease term.

Lease liabilities

At the commencement date of a lease arrangement, the Company recognises a right-of-use asset for the leased item and a lease

liability for any payments due. Lease liabilities are initially measured at the present value of the lease payments that are not paid

atthe commencement date, discounted using the incremental borrowing rate. The lease liability is subsequently measured at

amortised cost using the effective interest method and is remeasured if there is a change in future lease payments arising from

achange in an index or rate (such as an inflation-linked increase) or if there is a change in the Company’s assessment of whether

itwill exercise an extension or termination option. When this happens there is a corresponding adjustment to the right-of-use asset.

Where the Company enters into leases with a lease term of 12 months or less, these are treated as ‘short-term’ leases and are

recognised on a straight-line basis as an expense. The same treatment applies to low-value assets, which are typically IT equipment

and office equipment.

Intangible assets

Expenditure on research activities is recognised in the income statement as an expense as incurred. Expenditure on development

activities is capitalised if the product or process is technically and commercially feasible and the Company intends and has the

technical ability and sufficient resources to complete development, future economic benefits are probable and the Company can

measure reliably the expenditure attributable to the intangible asset during its development. Capitalised development expenditure

isamortised over the useful economic life appropriate to each product or process, ranging from five to 10 years, and is stated at

cost less accumulated amortisation and less accumulated impairment losses.

Inventories

Inventories are valued at the lower of actual cost on a first-in, first-out (FIFO) basis and net realisable value. Cost comprises direct

materials and labour plus overheads applicable to the stage of manufacture reached.

Taxation

The charge for taxation is based on the Company’s profit for the year. Deferred tax is provided on temporary differences between

thecarrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax assets are recognised to the extent that it is regarded as probable that they will be recovered.

Employee benefits

The Company operated a contributory pension scheme, of the defined benefit type up to 5 April 2007, after which this scheme was

closed for future accruals to existing members and was closed to new members. Since 5 April 2007, the Company has operated

adefined contribution scheme.

For the defined contribution scheme, the amount charged as an expense represents the contributions payable to the scheme

inrespect of the accounting period.

The scheme is managed by trustees who are independent of the Company.

Pension scheme assets in the defined benefit scheme are measured at fair value using market value. Pension scheme liabilities are

measured using a projected unit method and discounted at the current rate of return on a high-quality corporate bond of equivalent

term and currency to the liability. The expected return on the scheme’s assets and the interest on the scheme’s liabilities arising from

the passage of time are included in other finance income.

The pension scheme’s surplus, to the extent that it is considered recoverable, or deficit is recognised in full and presented on the

face of the balance sheet. Where a guarantee is in place in relation to a pension scheme deficit, liabilities are reported in accordance

with IFRIC 14. To the extent that contributions payable will not be available as a refund after they are paid into the plan, a liability

isrecognised at the point the obligation arises, which is the point at which the minimum funding guarantee is agreed.

Accruals are made for holiday pay, based on a calculation of the number of days holiday earned during the year but not yet taken,

and also for performance bonuses, if applicable.

Notes to the Company financial statements continued

188

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CONTENTS

C.31. Accounting policies continued

Derivative financial instruments

In accordance with its treasury policy, the Company does not hold or issue derivative financial instruments for speculative purposes.

The Company uses forward exchange contracts to hedge its exposure to foreign exchange risk arising from operational and

financing activities. Forward exchange contracts are recognised at fair value, being the estimated amount that the Company

wouldpay or receive to terminate them at the balance sheet date based on prevailing foreign currency rates. Changes in the fair

value of foreign currency derivatives which are designated and effective as hedges of future cash flows are recognised in Other

comprehensive income and in the currency hedging reserve, and subsequently transferred to the carrying amount of the hedged

item or the income statement. The ineffective part of any gain or loss is recognised in the income statement immediately.

Other financial instruments

Loans to Group undertakings are initially recognised at fair value and are subsequently held at amortised cost using the effective

interest rate method. Where such intercompany loans are repayable on demand, the Company determines whether any impairment

provision is required by assessing the company’s ability to repay the loan. Where it is determined that a recipient company does

nothave the capacity to repay the loan at the balance sheet date, or the loan is not repayable on demand, an expected credit loss

model is used to calculate the impairment provision required.

Trade and other current receivables are initially recognised at fair value and are subsequently held at amortised cost less any

provision for bad and doubtful debts. Trade and other current payables are initially recognised at fair value and are subsequently

held at amortised cost.

Warranty

The Company provides a warranty from the date of purchase, except for those products that are installed by the Company where

thewarranty starts from the date of completion of the installation. This is typically for a 12-month period, although up to three years

isgiven for a small number of products. A warranty provision is calculated on the basis of historical returns and internal quality

reports and is included in the Company financial statements.

Foreign currencies

Transactions in foreign currencies are translated at the rate of exchange prevailing at the date of the transaction. Monetary assets

andliabilities denominated in foreign currencies at the balance sheet date are translated into Sterling at the foreign exchange rate

prevailing at that date. Foreign exchange differences arising on such translation are recognised in the income statement.

C.32. Property, plant and equipment

Year ended 30 June 2026

Freehold

land and

buildings

£’000

Plant and

equipment

£’000

Motor

vehicles

£’000

Assets in the

course of

construction

£’000

Total

£’000

Cost

At 1 July 2025 171,503 243,865 2,13 5 28,609 446,112

Additions 1,625 14,117 269 7,559 23,570

Transfers 20,129 6,994 − (27,12 3) −

Transfers to investment properties (6,953) (316) − − (7,269)

Disposals (1,694) (26,600) (625) − (28,919)

At 30 June 2026 184,610 238,060 1,779 9,045 433,494

Depreciation

At 1 July 2025 32,456 183,811 2,133 – 218,400

Charge for the year 3,451 11,960 61 − 15,472

Impairment − 1,500 − − 1,500

Transfers to investment properties (2,310) (210) − − (2,520)

Disposals (171) (25,910) (625) − (26,706)

At 30 June 2026 33,426 171,151 1,569 – 206,146

Net book value

At 30 June 2026 151,184 66,909 210 9,045 227, 34 8

At 30 June 2025 139,047 60,054 2 28,609 2 27,712

At 30 June 2026, properties with a net book value of £nil (2025: £48.7m) were subject to a fixed charge to secure the UKdefined

benefit pension scheme (UK Scheme) liabilities. The charges were released on 5 January 2026, following completion of the latest

full actuarial valuation of the UK Scheme at 30 September 2024 (see Note 23).

189

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

C.32. Property, plant and equipment continued

Additions to assets in the course of construction comprise:

2026

£’000

2025

£’000

Freehold land and buildings 5,487 8,065

Plant and equipment 2,072 4,130

7,5 59 12,19 5

C.33. Right-of-use assets

Year ended 30 June 2026

Leasehold

property

£’000

Motor

vehicles

£’000

Total

£’000

Net book value

At 1 July 2025 1,821 967 2,788

Additions − 400 400

Depreciation (20) (594) (614)

At 30 June 2026 1,801 773 2,574

Year ended 30 June 2025

Leasehold

property

£’000

Motor

vehicles

£’000

Total

£’000

Net book value

At 1 July 2024 1,842 1,008 2,850

Additions – 404 404

Depreciation (21) (445) (466)

At 30 June 2025 1,821 967 2,788

C.34. Investment properties

2026

£’000

2025

£’000

Cost

Balance at the beginning of the year 8,933 7,012

Transfers from Property, plant and equipment 7, 2 6 9 1,921

Balance at the end of the year 16,202 8,933

Depreciation

Balance at the beginning of the year 2,275 1,148

Charge for the year 148 123

Transfers from Property, plant and equipment 2,520 1,004

Impairment 710 –

Balance at the end of the year 5,653 2,275

Net book value 10,549 6,658

The Company has recognised impairments of £0.7m (2025: £nil) following a market value assessment of a property.

Amounts recognised in the income statement relating to investment properties:

2026

£’000

2025

£’000

Rental income 743 562

Direct operating expenses (including repairs and maintenance) (173) (145)

Profit for the year 570 417

The fair value of the Company’s investment properties totalled £14.6m at 30 June 2026 (2025: £10.0m). Fair values of each

investment property have been determined within the last three years by independent valuers who hold recognised and relevant

professional qualifications and have recent experience in the location and category of each investment property being valued.

These valuations have been assessed to be materially appropriate at 30 June 2026.

Notes to the Company financial statements continued

190

Renishaw plc Annual Report 2026

CONTENTS

C.35. Long-term loans to Group undertakings

Amounts owed by Group undertakings at 30 June 2026 amounted to £16.8m (2025: £5.9m). This included expected credit loss

provisions of £24.5m (2025: £32.4m).

These amounts are unsecured and accrue variable interest.

C.36. Intangible assets

Year ended 30 June 2026

Internally

generated

development

costs

£’000

Software

licences,

intellectual

property and

other intangible

assets

£’000

Total

£’000

Cost

At 1 July 2025 183,744 16,539 200,283

Additions 9,897 43 9,940

Disposals (13,482) (3,638) (17,120)

At 30 June 2026 180,159 12,944 193,103

Amortisation

At 1 July 2025 147,49 4 13,511 161,005

Charge for the year 4,455 332 4,787

Impairment 3,804 – 3,804

Disposals (13,482) (3,536) (17,018)

At 30 June 2026 142,271 10,307 152,578

Net book value

At 30 June 2026 37,888 2,637 40,525

At 30 June 2025 36,250 3,028 39,278

There were impairments of internally generated development costs in the year of £3.8m (2025: £1.0m).

C.37. Investments in subsidiaries

Movements during the year were:

2026

£’000

2025

£’000

Balance at the beginning of the year 299,028 298,174

Additions 2,240 854

Transfers from investments in joint ventures 1,453 –

Disposals (107) –

Balance at the end of the year 302,614 299,028

During the year, the Company acquired the remaining 30% interest in Metrology Software Products Limited (MSP) for £2.2m,

increasing its ownership to 100%. The investment in joint ventures has been transferred to investments in subsidiaries

(seeNoteC.38). Details of the Company’s subsidiaries are given in Note C.50.

C.38. Investments in joint ventures

Investments in joint ventures at 30 June 2026 were £nil (2025: £1,453,000), following the transfer to Investment in subsidiaries

(seeNote C.37). Details of the Company’s joint ventures are given in Note C.51.

191

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FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

C.39. Deferred tax

Balances at the end of the year were:

2026 2025

Assets

£’000

Liabilities

£’000

Net

£’000

Assets

£’000

Liabilities

£’000

Net

£’000

Property, plant and equipment − (31,924) (31,924) – (30,528) (30,528)

Intangible assets − (5,072) (5,072) – (4,475) (4,475)

Defined benefit pension scheme − (1,657) (1,657) – (1,899) (1,899)

Derivatives − (2,036) (2,036) – (5,088) (5,088)

Other 1,247 − 1,247 1,374 – 1,374

Balance at the end of the year 1,247 (40,689) (39,442) 1,374 (41,990) (40,616)

Deferred tax assets and liabilities are offset where there is a legally enforceable right of offset and there is an intention to net settle

thebalances. After taking these offsets into account, the net position of £39.4m liability (2025: £40.6m liability) is presented as

adeferred tax liability in the Company’s balance sheet. Where deferred tax assets are recognised, the Directors are of the opinion,

based on recent and forecast trading, that the level of taxable profits in current and future years make it more likely than notthat

these assets will be recovered.

Movements during the year were:

2026

£’000

2025

£’000

Balance at the beginning of the year (40,616) (35,596)

Movements during the year 1,174 (5,020)

Balance at the end of the year (39,442) (40,616)

C.40. Inventories

An analysis of inventories at the end of the year was:

2026

£’000

2025

£’000

Raw materials 46,820 42,912

Work in progress 37,375 30,748

Finished goods 32,215 26,950

Balance at the end of the year 116,410 100,610

At the end of the year, the gross cost of inventories which has provisions held against them totalled £17.1m (2025: £18.1m).

C.41. Trade receivables

An analysis of trade receivables at the end of the year was:

2026

£’000

2025

£’000

Trade receivables 22 13

Amounts owed by Group undertakings 65,788 43,656

Balance at the end of the year 65,810 43,669

C.42. Other receivables

An analysis of other receivables at the end of the year was:

2026

£’000

2025

£’000

Software maintenance 8,627 10,138

Indirect tax receivable 8,006 6,279

Other prepayments 9,610 10,755

Balance at the end of the year 26,243 27,172

Notes to the Company financial statements continued

192

Renishaw plc Annual Report 2026

CONTENTS

C.43. Provisions

Warranty provision movements during the year were:

2026

£’000

2025

£’000

Balance at the beginning of the year 1,859 2,266

Created in the year 3,165 2,100

Used in the year (1,935) (2,507)

1,230 (407)

Balance at the end of the year 3,089 1,859

The warranty provision has been calculated on the basis of historical return-in-warranty information and other quality reports.

Itisexpected that most of this expenditure will be incurred in the next financial year and all expenditure will be incurred within

threeyears of the balance sheet date.

C.44. Leases (as lessee)

Lease liabilities are analysed as below:

Year ended 30 June 2026

Leasehold

property

£’000

Motor

vehicles

£’000

Total

£’000

Total future minimum lease payments payable

3,715 870 4,585

Effect of discounting (1,831) (42) (1,873)

Lease liability 1,884 828 2,712

Year ended 30 June 2025

Leasehold

property

£’000

Motor

vehicles

£’000

Total

£’000

Total future minimum lease payments payable

3,756 1,113 4,869

Effect of discounting (1,862) (80) (1,942)

Lease liability 1,894 1,033 2,927

C.45. Other payables

An analysis of other payables due within one year at the end of the year was:

2026

£’000

2025

£’000

Amounts owed to Group undertakings 20,162 21,328

Other taxes and social security 4,047 4,023

Other creditors and accruals 31,030 22,309

Balance at the end of the year 55,239 47,6 60

Other creditors and accruals include £11.3m (2025: £6.9m) relating to performance bonus accruals.

C.46. Employee benefits

The Company operated a defined benefit pension scheme, which, at 5 April 2007, ceased any future accrual for current members

andwas closed to new members. Employees of the Company now participate in a defined contribution scheme.

The total pension cost of the Company for the year was £22.4m (2025: £21.7m), of which £0.1m (2025: £0.1m) related toDirectors.

The latest full actuarial valuation of the scheme was carried out at 30 September 2024 and updated to 30 June 2026 by a qualified

independent actuary.

The major assumptions used by the actuary for the scheme are disclosed in Note 23, along with relevant sensitivities.

The assets and liabilities in the scheme were:

30 June 2026

£’000

% of total

assets

30 June 2025

£’000

% of total

assets

Market value of assets:

Insurance contract 127,679 94 118,158 93

Credit and fixed income funds 7,148 5 7,924 6

Cash and other 682 1 776 1

135,509 100 126,858 100

Actuarial value of liabilities (128,883) − (119,262) –

Surplus in the scheme 6,626 − 7,59 6 –

Deferred tax thereon (1,657) − (1,899) –

193

Renishaw plc Annual Report 2026

FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

C.46. Employee benefits continued

The movements in the scheme were:

Year ended 30 June 2026

Assets

£’000

Liabilities

£’000

Total

£’000

Surplus in scheme at the beginning of the year

126,858 (119,262) 7,59 6

Interest on pension scheme 6,851 (6,457) 394

Remeasurement gain/(loss) under IAS 19 9,016 (9,309) (293)

Scheme administration expenses (1,071) − (1,071)

Benefits paid (6,145) 6,145 −

Surplus in scheme at the end of the year 135,509 (128,883) 6,626

Year ended 30 June 2025

Assets

£’000

Liabilities

£’000

Total

£’000

Surplus in scheme at the beginning of the year

139,131 (130,414) 8,717

Interest on pension scheme 6,936 (6,516) 420

Remeasurement gain/(loss) under IAS 19 (12,477) 12,065 (412)

Scheme administration expenses (1,129) – (1,129)

Benefits paid (5,603) 5,603 –

Surplus in scheme at the end of the year 126,858 (119,262) 7,596

The analysis of the amount recognised in Other comprehensive income and expense was:

2026

£’000

2025

£’000

Actuarial gain/(loss) arising from:

Changes in demographic assumptions (2,765) –

Changes in financial assumptions 6,193 11,759

Experience adjustment (12,737) 306

Return on plan assets excluding interest income 9,016 (12,477)

Total recognised in Other comprehensive income and expense (293) (412)

C.47. Share capital

2026

£’000

2025

£’000

72,788,543 allotted, called-up and fully paid ordinary shares of 20p each 14,558 14,558

The ordinary shares are the only class of share in the Company. Holders of ordinary shares are entitled to vote at general meetings

of the Company and receive dividends as declared. The Articles of Association of the Company do not contain any restrictions on

the transfer of shares nor on voting rights.

C.48. Related parties

During the year, related parties, these being the Group’s joint ventures (see Note 13), had the following transactions and balances

with the Company:

2026

£’000

2025

£’000

Purchased goods and services from the Company during the year 636 23

Sold goods and services to the Company during the year 2,673 2,526

Amounts owed by the Company at the year end − 237

Amounts owed to the Company at the year end 93 9

As announced on 26 November 2025 the families of the Company’s founders – the late Sir David McMurtry and current

Non-executive Director John Deer – established a joint family holding company, Deltam Holdings Limited (Deltam), to hold

50.25%of the issued share capital of Renishaw (see Note 28).

C.49. Capital commitments

Capital commitments at the end of the year, for which no provision has been made in the financial statements, were £15.0m

(2025:£9.1m).

Notes to the Company financial statements continued

194

Renishaw plc Annual Report 2026

CONTENTS

C.50. Subsidiary undertakings

The following are the subsidiary undertakings of Renishaw plc as at 30 June 2026, all of which are wholly-owned and held by

asubsidiary undertaking, unless otherwise stated. The country in which each subsidiary has its registered/principal office is its

domicile and country of incorporation. The accounting year end for each subsidiary undertaking is 30 June unless otherwise stated.

The shareholdings in all the subsidiary undertakings are in the ordinary share capital of those undertakings unless otherwise stated.

The principal activities for all the subsidiary undertakings are those of the Company, as set out in the Other statutory and regulatory

disclosures, except as indicated below:

Dormant company * 31 March year end

Finance company

31 December year end

Holding company

†

Ordinary-A shares

Travel agency

‡

Ordinary-C shares

Company Registered Office

Owned by Renishaw plc

MTT Investments Limited

New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR

United Kingdom

Renishaw Advanced Materials Limited

Renishaw International Limited

Renishaw Medical Limited

Renishaw PT Limited

Renishaw Software Limited

Renishaw Transducer Systems Limited

Renishaw UK Sales Limited

Wotton Travel Limited

Measurement Devices Limited

272 Bath Street, Glasgow, Scotland, G2 4JR

United Kingdom

Renishaw Diagnostics Limited

†‡

272 Bath Street, Glasgow, Scotland, G2 4JR

United Kingdom

Renishaw Tehnicni Inženiring d.o.o. 4th Floor, Faculty of Electrical Engineering, University of Ljubljana,

Tržaška cesta 25, Ljubljana, 1000

Slovenia

Renishaw Neuro Solutions Limited Wotton Road, Charfield, Wotton-under-Edge, Gloucestershire, GL128SP

United Kingdom

Metrology Software Products Limited New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR

United Kingdom

Owned by MTT Investments Limited

MTT Technologies Limited

New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR

United Kingdom

Owned by Renishaw International Limited

itp GmbH Rathausstraße 75-79, 66333, Völklingen

Germany

OOO Renishaw

(not actively trading) Kantemirovskaya Ulitsa, 58, 115477, Moskva,

Russian Federation

Renishaw (Austria) GmbH Industriestraße 9, Top 4.2, 2353, Guntramsdorf

Austria

Renishaw (Canada) Limited 2196 Dunwin Drive, Mississauga, Ontario, L5L 1C7

Canada

Renishaw (Hong Kong) Limited Ever Gain Plaza Tower 2, 28/F, 88 Container Port Road, KwaiChung

Hong Kong

Renishaw (Ireland) DAC Swords Business Park, Mountgorry, Swords, County Dublin, K67 FX67

Ireland

Renishaw (Israel) Limited HaTnufa Street 3, Kraytek Building, PO Box 4, Yokne’am Illit, 2069204

Israel

Renishaw (Korea) Limited RM#1314, Woolim e-Biz Center, 28 Digital-ro 33-gil, Guro-gu, Seoul

Republic of Korea

Renishaw AB Biskop Henriks väg 2, 176 76, Järfälla

Sweden

Renishaw AG Stachelhofstrasse 2, 8854, Siebnen, Schübelbach

Switzerland

Renishaw Benelux BV Nikkelstraat 3, 4823 AE, Breda

Netherlands

195

Renishaw plc Annual Report 2026

FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Company Registered Office

Renishaw GmbH (5.1% owned by Renishaw plc) Karl-Benz Straße 12, 72124, Pliezhausen

Germany

Renishaw Gulf Measuring & Control Systems Trading

LLC

Office 501, 5th Floor, Block B, Business Village, Port Saeed, Deira, Dubai

United Arab Emirates

Renishaw Healthcare, Inc. 137 N Oak Park Ave, Ste 215, Oak Park, IL 60301

United States

Renishaw Hungary Kft Gyár utca 2, Budaörs, 2040

Hungary

Renishaw Ibérica S.A.U. Gavà Park, Carrer de la Recerca, 7, Gavà, 08850, Barcelona

Spain

Renishaw K.K. 4 Chome-29-8 Yotsuya, Shinjuku-ku, Tokyo, 160-0004

Japan

Renishaw Latino Americana Ltda.

Alameda Juari, 361, Tambore, Barueri, São Paulo, 06460-090

Brazil

Renishaw Metrology Systems Limited

S.No.283, Hissa no.2, S.No.284, Hissa no.2 & 3A, Raisoni Industrial Estate,

Village Mann, Taluka Mulshi, Pune, 411057

India

Renishaw México S. de R.L. de C.V.

(0.001%ownedby Renishaw, Inc.)

Iridium 5004, Parque Industrial Milenium, Apodoca, Nuevo León, 66600

Mexico

Renishaw Oceania Pty Limited c/o KPMG, Tower Two, Collins Square, 727 Collins Street, Docklands VIC 3008

Australia

Renishaw Oy c/o WaBuCo Oy, Energiakuja 3, Helsinki, 00180

Finland

Renishaw S.A.S. 15 Rue Albert Einstein, 77420, Champs-sur-Marne

France

Renishaw S.p.A. Via dei Prati 5, 10044 Pianezza, Torino

Italy

Renishaw s.r.o. Olomoucká 1164/85, Brno-Černovice, Brno, 627 00

Czech Republic

Renishaw Sp. z o.o. ul. Osmańska 12, 02-823, Warszawa

Poland

Renishaw Teknoloji Çözümleri LŞ Turgut Özal Blv. No:193, Şerifali Mahallesi, Dudullu Osb, Ümraniye,

İstanbul,34775

Turkey

Renishaw US Holdings, Inc.

262 Chapman Rd, Suite 240, Newark, DE 19702

United States

Renishaw, Inc. 137 N Oak Park Ave, Ste 215, Oak Park, IL 60301

United States

Owned by Renishaw (Hong Kong) Limited

Renishaw (Malaysia) Sdn. Bhd. Upper Penthouse, Wisma RKT, 2, Jalan Raja Abdullah, Chow Kit, 50300

KualaLumpur, Wilayah Persekutuan

Malaysia

Renishaw (Shanghai) Management Company Limited

288 Jiang Chang San Lu, Zhabei Qu, Shanghai, 20436

China

Renishaw (Shanghai) Trading Company Limited

286 Jiang Chang San Lu, Zhabei Qu, Shanghai, 20436

China

Renishaw (Singapore) PTE Limited 988 Toa Payoh North, #06-07/08, 319002

Singapore

Renishaw (Taiwan) Inc 2F. No. 2, Jingke 7th Road, Nantun District, Taichung, 40852

Taiwan

Owned by Renishaw US Holdings, Inc.

Renishaw Fixturing Solutions, LLC 405 W. Greenlawn Ave, #g11, Lansing, Michigan, 48910

United States

Renishaw Properties, Inc. 262 Chapman Rd, Suite 240, Newark DE 19702

United States

C.50. Subsidiary undertakings continued

Notes to the Company financial statements continued

196

Renishaw plc Annual Report 2026

CONTENTS

Company Registered Office

Owned by Renishaw Medical Limited

Renishaw Medical AM Solutions Limited

New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR

United Kingdom

Owned by Renishaw Neuro Solutions Limited

Renishaw Mayfield SARL 31 Rue Ampère, 69680, Chassieu

France

Subsidiary audit exemption

Renishaw plc has issued a guarantee over the liabilities of Metrology Software Products Limited (04468819) as at 30 June 2026

under Section 479C of the Companies Act 2006 (the Act), which qualifies Metrology Software Products Limited to take the statutory

audit exemption as set out within Section 479A of the Act for the period ended 30 June 2026.

C.51. Joint venture

The following is a joint venture of Renishaw plc at 30 June 2026. The country in which the entity has its registered/principal office

isits domicile and country of incorporation. The accounting year end of the joint venture is 30 June unless otherwise stated.

Theshareholding shown is in the ordinary share capital of the undertaking unless otherwise stated. The principal activity of the

jointventure is consistent with that of the Company, as described in the Other statutory and regulatory disclosures.

Company Registered Office

Owned by Renishaw International Limited

RLS Merilna tehnika d.o.o. (50%) Poslovna cona Žeje pri Komendi, Pod vrbami 2, Komenda, 1218 Slovenia

C.52. Ultimate parent company

The Company is a subsidiary undertaking of Deltam Holdings Limited which is the immediate and ultimate parent company

incorporated in GreatBritain and registered in England and Wales.

At the date of approving these Consolidated financial statements, the consolidated financial statements of Deltam Holdings Limited

are not yet complete. Once completed they will be available to the public and may be obtained from DeltamHoldings Limited,

Carpenter Court, 1 Maple Road, Bramhall, Stockport, Cheshire, United Kingdom, SK7 2DH or from Companies House.

C.50. Subsidiary undertakings continued

197

Renishaw plc Annual Report 2026

FINANCIAL STATEMENTS

CONTENTS

FINANCIAL STATEMENTS

Results

2026

£’000

2025

£’000

2024

£’000

2023

£’000

2022

£’000

2021

£’000

2020

£’000

2019

£’000

2018

£’000

2017

£’000

Overseas revenue 785,793 679,027 653,345 649,674 639,540 538,636 482,784 539,915 580,940 509,212

UK and Ireland revenue 29,986 34,017 37,956 38,899 31,536 26,923 27,431 34,044 30,567 27,595

Total revenue 815,779 713,044 691,301 688,573 671,076 565,559 510,215 573,959 611,507 536,807

Adjusted operating profit 152,896 112,264 108,667 130,407 161,406 118,568 51,700 93,711 143,045 108,733

Adjusted profit before tax 167,954 127,231 122,594 140,983 163,742 119,666 48,614 103,862 145,081 109,079

Taxation (excluding

adjusted items) 37,2 61 27,010 25,705 28,126 28,685 23,611 11,547 16,557 20,942 12,819

Profit for the year

(excluding adjusted items

and tax on adjusted items) 130,693 100,221 96,889 112,857 135,057 96,055 37,0 67 87,305 124,139 96,260

Capital employed

2026

£’000

2025

£’000

2024

£’000

2023

£’000

2022

£’000

2021

£’000

2020

£’000

2019

£’000

2018

£’000

2017

£’000

Share capital 14,558 14,558 14,558 14,558 14,558 14,558 14,558 14,558 14,558 14,558

Share premium 42 42 42 42 42 42 42 42 42 42

Reserves 969,532 911,264 881,665 875,564 800,570 688,730 532,264 568,677 533,994 429,214

Total equity 984,132 925,864 896,265 890,164 815,170 703,330 546,864 583,277 548,594 443,814

Statistics 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017

Overseas revenue as a

percentage of total revenue 96.3% 95.2% 94.5% 94.4% 95.3% 95.2% 94.6% 94.1% 95.0% 94.9%

Adjusted earnings

pershare 179.5p 137.3p 133.2p 155.1p 185.5p 132.0p 51.0p 119.9p 170.5p 132.4p

Proposed dividend

(thetotal of the final and

interim dividend) 82.0p 78.1p 76.2p 76.2p 72.6p 66.0p 0.0p 60.0p 60.0p 52.0p

Note

The results and adjusted earnings per share for the years 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 exclude certainitems. These were:

− 2017 (£8.0m pre-tax gain), 2018 (£10.1m pre-tax gain), 2019 (£6.1m pre-tax gain), 2020 (£21.6m pre-tax loss), 2021(£23.0mpre-taxgain)

and 2022 (£8.3mpre-tax loss) and 2023 (£5.5m pre-tax gain) gains and losses from financial instruments not effective for cash flowhedging;

− 2020 (£23.8m loss), 2022 (£1.7m gain) and 2023 (£0.7m) restructuring costs;

− 2021 (£3.2m loss) and 2022 (£0.2m gain) third-party FSP costs;

− 2022 (£11.7m loss) UK defined benefit pension scheme past service cost;

− 2023 (£2.1m loss) US defined benefit pension scheme past service cost;

− 2024 (£nil);

− 2025 (£2.3m pre-tax loss) closure of Edinburgh research facility, (£2.1m pre-tax loss) closure of drug delivery business, (£4.9m pre-tax loss) other interest

payable on historical and non-recurring tax matters. (£9.2m loss) on prior year adjustment taxation charge on historical and non-recurring tax matters and

(£1.9mgain) taxation on adjusting items;

− 2026 (£14.9m pre-tax loss) cost reduction programme, (£2.0m pre-tax loss) loss of office payable to Executive Director, (£0.7m pre-tax loss) closure of drug

delivery business, (£0.8m pre-tax gain) other interest payable on historical and non-recurring tax matters, (£5.4m gain) prior year adjustment taxation charge

onhistorical and non-recurring tax matters, and (£3.7m gain) taxation on adjusting items.

The proposed dividend for FY2026 excludes the special dividend of 70.0p per share.

10-year financial record

198

Renishaw plc Annual Report 2026

CONTENTS

AGM

Annual General Meeting

artificial intelligence

additive manufacturing (3D printing)

APAC

Asia Pacific

APM(s)

alternative performance measure(s)

carbon dioxide equivalent

Company

Renishaw plc

CMM

co-ordinate measuring machine

CNC

computer numerically controlled

CPI

consumer price index

DESNZ

Department for Energy Security and Net Zero

DTR

the FCA’s Disclosure Guidance and

Transparency Rules

EBT

Employee Benefit Trust

EMEA

Europe, Middle East and Africa

EPS

earnings per share

ERP

enterprise resource planning

ESG

environmental, social and governance

EUR

Euro

electric vehicle

Ernst & Young LLP

FCA

Financial Conduct Authority

FRC

Financial Reporting Council

FSP

formal sale process

foreign exchange

GBP

Great British Pound or Pound Sterling

GHG

greenhouse gas

GMP

Guaranteed minimum pension

Group

Renishaw plc and its subsidiaries

GWP

global warming potential

HKD

Hong Kong Dollar

ICE

internal combustion engine

IFRIC

International Financial Reporting

Interpretations Committee

IFRS

International Financial Reporting Standards

intellectual property

IPCC

International Panel on Climate Change

Glossary

ISO/IEC 270001

International standard for information

securitymanagement

JPY

Japanese Yen

kilowatt – an amount of power equal to

1,000watts

kWh

kilowatt hour – an amount of energy equivalent

todelivering 1kW of power for anhour

LTIP

Long-Term Incentive Plan

M&A

mergers and acquisitions

NCI

non-controlling interest

OCI

other comprehensive income

OEM

original equipment manufacturer

P&L

profit and loss account

PBT

profit before tax

PSP

Performance Share Plan

RDEC

research and development tax credit

RIS

Regulatory Information Service

RIDDOR

Reporting of Injuries, Diseases and

Dangerous Occurrences Regulations 2013

SBTi

Science Based Targets initiative

Scope 1

direct GHG emissions occur from sources

that are owned or controlled by the Group.

For example, emissions from combustion

inowned or controlled boilers, generators,

vehicles, etc.

Scope 2

GHG emissions from the generation of

purchased electricity consumed by

theGroup

Scope 3

indirect GHG emissions are a consequence

of the activities of the Group, but that occur

from sources not owned or controlled by

theGroup

tCO

Tonnes of carbon dioxide equivalent

TCFD

Task Force on Climate-related Financial

Disclosures

TSR

Total shareholder return, calculated as

change inshare price, assuming dividends

are immediately reinvested

ULEV

ultra-low emission vehicle

UKLR

The FCA’s UK Listing Rules

UN SDG

United Nations Sustainable Development Goal

USD

United States Dollar

Trademarks

The following registered and unregistered trademarks, which are owned by Renishaw plc and its subsidiaries, appear throughout

this Annual Report.

AGILITY

ASTRiA

™

CARTO

™

Equator

™

Equator-X

™

MODUS

™

MODUS

™

IM Strada

RenAM

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199

Renishaw plc Annual Report 2026

SHAREHOLDER INFORMATION

CONTENTS

SHAREHOLDER INFORMATION

Ordinary shares

The Company has one class of ordinary 20p shares listed on

theLondon Stock Exchange under code RSW, ISIN number

GB0007323586.

Registrars

For all enquiries about shareholders’ holdings, transfer and

registration of shares, and changes of name and address,

contact the Company’s registrars, Equiniti Limited:

Equiniti

Highdown House

Worthing

West Sussex

BN99 6DA

Telephone: +44 (0)371 384 2169

Website: www.shareview.co.uk

Calls are charged at the standard geographic rate. Calls outside

the UK will be charged at the applicable international rate. Lines

are open from 8:30am to 5:30pm (UK time), Monday to Friday

(excluding English and Welsh public holidays).

AGM

Our 2026 AGM will be held on Wednesday, 25 November

2026at our headquarters at New Mills, Wotton-under-Edge,

Gloucestershire, GL12 8JR at 10am. Further details can be

foundin the Notice of Meeting, which is set out in a separate

circular to shareholders. Shareholders holding shares in the

Company through a nominee service should arrange to be

appointed as a corporate representative or a proxy in respect

oftheir shareholding in order to attend and vote at the meeting.

Financial reports

The Annual Report and copies of previous financial reports are

available at www.renishaw.com/investor. The half-year results

and the preliminary announcement of the full-year results are

published on our website promptly after they have been

releasedthrough a Regulatory Information Service.

Electronic communications

All shareholder communications, including the Company’s

Annual Report, are made available on the Renishaw website,

and you may opt to receive email notifications informing you

when shareholder communications are available to view and

download rather than receiving paper copies through the post.

Receiving communications electronically provides certain

advantages to shareholders and Renishaw, including accessing

documents more quickly, reducing our environmental impact

andreducing the cost of printing and delivery of documents.

Ifyou would like to sign up for this service, visit Equiniti’s

Shareview Portfolio website. You may change the way you

receive communications at any time by contacting Equiniti.

Dividend mandate

Shareholders can arrange to have their dividends paid directly

into their bank or building society account by completing a bank

mandate form. This is the most secure and efficient method of

payment. A mandate form can be obtained from Equiniti or you

will find one on your last dividend confirmation.

Shareholder information

Financial calendar

Annual General Meeting

25 November 2026

Half year

31 December 2026

Half-year results

February 2027

Trading update

May 2027

Final dividend and special dividend

Ex-div date 29 October 2026

Record date 30 October 2026

Payment date 3 December 2026

Interim dividend (provisional)

Ex-div date 4 March 2027

Record date 5 March 2027

Payment date 6 April 2027

Registration details and Company Secretary

Group General Counsel & Company Secretary

Kasim Hussain

Registered office

New Mills

Wotton-under-Edge

Gloucestershire

GL12 8JR

Telephone: +44 (0)1453 524524

Email: companysecretary@renishaw.com

Website: www.renishaw.com/investor

Registered number

01106260 (England and Wales)

Auditor and corporate advisers

Auditor

Ernst & Young LLP

Solicitors

Norton Rose Fulbright LLP

Herbert Smith Freehills Kramer LLP

Corporate brokers

UBS

Peel Hunt

Principal bankers

Lloyds Bank

BNP Paribas

HSBC

Citibank

Shareholder information

200

Renishaw plc Annual Report 2026

CONTENTS

Shareholder profile

Shareholdings %

1 1 – 5,000 1.00

2 5,001 – 25,000 2.23

3 25,001 – 50,000 2.57

4 50,001 – 100,000 4.67

5 100,001 – 500,000 15.16

6 500,001 – 1,000,000 9.43

7 1,000,001 – 3,000,000 14.69

8 more than 3,000,000 50.25

Share fraud

We are aware some of our shareholders have received

unsolicited calls or correspondence, offering to buy or sell

theirshares for a price in excess of the current market price.

Thecallers can be very persuasive and extremely persistent

andoften have professional websites and telephone numbers

tosupport their activities. These callers will sometimes imply

aconnection to Renishaw and provide incorrect or misleading

information. Please be aware this is likely to be a scam – the

safest thing to do is hang up.

You are advised to be wary of unsolicited advice or offers to

buyshares.

See www.fca.org.uk/consumers/protect-yourself-scams for

further advice.

Find out more or report suspected fraud to the FCA on their

consumer helpline 0800 111 6768 (overseas callers dial

+44207066 1000) or using the share fraud reporting form

available at www.fca.org.uk/consumers/report-scam.

If you have already paid money to share fraudsters contact

Report Fraud on 0300 123 2040 (overseas callers dial

+44300123 2040) or their online fraud reporting tool at

www.reportfraud.police.uk/guide-to-reporting. If you live in

Scotland, you should report to Police Scotland by calling 101,

orcontact Advice Direct Scotland on 0808 164 6000.

Cautionary note and safe harbour: this Annual Report has

been prepared for the purpose of assisting the Company’s

shareholders to assess the strategies adopted by the

Company and the potential for those strategies to succeed

and no one, including the Company’s shareholders, may

relyon it for any other purpose.

This Annual Report has been prepared on the basis of the

knowledge and information available to the Directors at the

time. Given the nature of some forward-looking information,

which has been given in good faith, the Company’s

shareholders should treat this information with due caution.

201

Renishaw plc Annual Report 2026

SHAREHOLDER INFORMATION

CONTENTS

Design, editing and production by Falcon Windsor

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Printed at Pureprint Group, ISO 14001. FSC

certified and CarbonNeutral

This document is printed on Revive 100% Recycled Silk. These papers have been exclusively supplied

byDenmaur Independent Papers, which has offset the carbon produced by the production and delivery

ofthem to the printer.

These papers are 100% recycled and manufactured using de-inked post-consumer waste. All the pulp is

bleached using an elemental chlorine free process (ECF). Printed in the UK by Pureprint using its pureprint

environmental printing technology. Vegetable inks were used throughout. Pureprint is a CarbonNeutral

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(FSC

) chain-of-custody certified.

If you have finished with this document and no longer wish to retain it, please pass it on to other interested

readers or dispose of it in your recycled paper waste. Thank you.

Renishaw plc

New Mills, Wotton-under-Edge,

Gloucestershire GL12 8JR

United Kingdom

T: +44 (0)1453 524524

E: uk@renishaw.com

For more information visit: