stakeholder engagement Stakeholder engagement

We are a global company providing power solutions for customers in civil and defence aerospace, as well as the marine and energy markets. We support our customers through a worldwide network of offices, manufacturing and service facilities in more than 50 countries.

We seek to develop our customer relationships through long-term service contracts where we can grow strong business collaboration and host a regular programme of customer site visits.

Close collaboration with our suppliers is critical to our continued success. With more than 70 per cent of our manufacturing costs in our supply chain, suppliers make a vital contribution to our performance. We encourage them to work openly and collaboratively with us as we continually improve our operations.

We seek to build strategic relationships with governments in our key market. National governments are often our customers.

National governments and the EU set the legislative and policy framework within which our business must be conducted. They are also a potential source of funding and support for research and technology (R&T), research and development (R&D), manufacturing, education and training initiatives, as well as for certain capital projects.

We engage in dialogue to try to align our own business needs with the political, social, economic, industrial and commercial requirements of the national government and the EU.

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We have a firm, long-standing commitment to the communities in which we operate around the world.

Our community investment activities support our strategy and future success, particularly in the areas of: recruitment and employee retention, employee engagement, professional development and our reputation in the community.

We work closely with partners in the wider community who have a deep understanding of the issues we wish to address. This helps to ensure that our programmes make a real difference to the communities and people who benefit from our activities.

Communications with shareholders regarding business strategy and financial performance are coordinated by a dedicated Investor Relations department that reports to the Chief Financial Officer. Communications regarding the general administration of shareholdings are coordinated by our Company Secretariat, reporting to the Company Secretary.

The two primary written sources of information about our Group for shareholders are the website link to IR section on website and the published annual report link to annual report.

We conduct a dedicated investor relations programme with institutional investors. This includes various formal events during the year, as well as a regular series of one-to-one and group meetings. The purpose of these events is to highlight a particular issue, theme or announcement that we believe warrants further explanation or clarification. The events also provide opportunities for shareholders to meet members of our senior management team to discuss topics of interest. Examples of these events in 2012 were: the preliminary and half-yearly results announcements; the AGM; the update given at the Farnborough International Airshow on trends in the civil and defence aerospace businesses; visits to our sites; and industry conferences.

The one-to-one and group meetings provide additional context around our business strategy and financial performance. This allows shareholders to consistently and fairly value the Group’s businesses.

In 2012, around 340 meetings took place with over 320 separately identifiable institutional investors. Of those meetings, our Chief Executive attended 25 meetings and the Chief Financial Officer 50 meetings. From a regional perspective, the majority of meetings took place in the UK (approximately 200). Sixty meetings occurred in the US and Canada, and a further 35 meetings took place in Europe. Our Chairman also meets institutional investors from time to time when requested.