# Chairman's statement

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-cyclical-auto-parts/LSE_ABDP.L_2021/LSE_ABDP.L_2021.mmd` · pages 8-14_

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Chairman's statement continued

## Board changes

The primary change to the Board structure during the year was the retirement of AB Dynamics' founder and Non-Executive Chairman, Tony Best. Tony founded the business in 1982 and took the Company public through the IPO in 2013. The Board would like to express our sincere thanks to Tony for his substantial contribution to the development of the Group and wish him a long and happy retirement.

I initially accepted the role as interim Chairman during Tony Best's extended leave of absence on 23 February 2021 and was appointed Non-Executive Chairman on 1 July 2021 (for more details refer to the Nomination Committee report on page 75). Following my appointment, my role as Chair of the Remuneration Committee passed to Richard Hickinbotham and I became Chair of the Nomination Committee. Louise Evans continues in her role of Chair of the Audit & Risk Committee, in addition to taking on the new role of Chair of the Environmental, Social and Governance (ESG) Committee.

## ESG

The Board is committed to ongoing improvements in all aspects of ESG and formed a new Board committee during the year, chaired by Louise Evans with membership including myself, the Chief Executive Officer, Chief Strategy Officer, Group HR Director and Company Secretary. Further information on our approach to ESG can be found on pages 36 to 49 and the activities of the ESG Committee are summarised on page 79.

## Corporate governance

Strong corporate governance and risk management is an essential element of the Board's activities and is key to ensuring ongoing stability and growth of the Group. I am pleased to confirm that AB Dynamics plc is in compliance with the Quoted Companies Alliance (QCA) Code as required under the AIM rules. The Board takes into consideration feedback provided by various ratings agencies in setting policies and in developing our ESG strategy as part of our continuous improvement in corporate governance. I report separately on the Group's approach to governance and its procedures in the Statement of Corporate governance which can be found on pages 63 to 74.

## Dividend

Based on the strong second half of the financial year and the Board's confidence in continued growth and delivery in 2022, the Board is recommending a final dividend of 3.2p per share payable on 28 January 2022 subject to shareholder approval at the AGM. The ex-dividend date will be 30 December 2021 and the record date will be 31 December 2021. The total dividend for the year will therefore be 4.8p per share, which is an increase of over the prior year of 10%, resuming the Board's progressive dividend policy after dividend increases were paused during the COVID-19 pandemic.

## Outlook

AB Dynamics operates within markets that are supported by long-term regulatory and structural growth drivers in automotive and holds an enviable position in the sectors in which it operates. These market growth drivers, coupled with the ongoing investments in all areas of the business, provide the Board with strong confidence that the outlook remains positive.

## Q&A

## Firstly, you've been appointed as the new Chairman – what have been the highlights so far?

Well, we've all been through a pretty tough year, but it's been the resilience of AB Dynamics that has really impressed me. Our strong second half and robust forward order book are a testament to the team's hard work. Navigating this challenging year with my Board colleagues has been an energising experience and a real highlight for me.

I was delighted to see this reflected in the results of our first independent Board evaluation, which showed that despite the Board being relatively new, we have gelled very quickly and are very focused on key issues and opportunities.

## Describe the culture at AB Dynamics

It's a culture characterised by engineering excellence and an enterprise with high value products and services sold to some of the most knowledgeable and discerning customers. A real surprise and delight for me has been that we have set up a small cross functional group to distill from this culture the In addition to the growth in our core markets, significant opportunities exist in the Group's new strategic development with ABD Solutions, details of which can be found on pages 14 to 15. This initiative greatly expands the Group's addressable market and provide growth potential in adjacent market sectors to diversify and build a broader-based business.

Our continued strategic clarity and ongoing investments provide a strong platform for future growth and the Board remains confident in delivering continued progress in the forthcoming year.

Richard Elsy CBE,
Chairman
24 November 2021