RENISHAW P L C

It is the Company policy to agree appropriate terms of payment with each supplier, and to pay invoices in line with those terms subject to the timely submission of satisfactory invoices. Payment runs for each currency are made at both the middle and end of each month. To avoid invoices on the standard terms of 60 days being paid late, we endeavour whenever possible to pay these on month end 30 day terms. This approach results in the average time taken to pay invoices being 46 days compared to the standard 60 day terms.

21% of invoices due in the period were not paid within the contractual terms. Most invoices paid beyond the due date were on 30 day terms or less. Of the invoices paid beyond terms, 40% were paid on the next available bi-monthly payment run and were therefore paid within two weeks of the due date. The 21% of payments not paid within terms includes items that were still in dispute at the due date. Invoices are paid promptly once disputes are resolved.

During the reporting period, 91% of invoices were paid within 60 days. Many of the invoices paid beyond 60 days relate to either intercompany supplies or disputed invoices.

The Company is committed to dealing with its suppliers in a fair, honest and professional manner. We seek to resolve queries as quickly as possible to both party’s satisfaction prior to payment being made. Invoice queries are dealt with in the first instance by the Purchasing Department who are made aware of issues within a week of Accounts Payable receiving the invoice. Senior managers from both the Finance and Purchasing Departments review follow up activities on outstanding queries each month. An escalation process is in place whereby items not satisfactorily resolved in the first instance are elevated to the Divisional General Manager, the Head of Group Finance and ultimately to the Group Finance Director.