Letter from the Chairman on Governance

Michael redmond letter

Dear Shareholder

On behalf of the Board I am pleased to present Dechra's Corporate Governance report for the year ended 30 June 2013.

The 2012/2013 financial year has seen a number of changes to the Board from both an Executive and Non-Executive perspective. In terms of Executive Director changes, Simon Evans tendered his resignation as Group Finance Director after 15 years' service with the Company. During his tenure on the Board, Dechra developed from a UK based veterinary wholesale company into an international veterinary pharmaceuticals business. I would like to thank Simon for his significant contribution to the growth of Dechra and wish him well in his future.

Following Simon's resignation, JCA Group were retained to commence the search for a high calibre finance professional who could work alongside the Chief Executive Officer to continue to develop and progress the Group strategy. I was delighted that in April Anne-Francoise Nesmes agreed to join Dechra as its Chief Financial Officer. Anne-Francoise has an impressive financial career, the majority of which has been spent with GlaxoSmithKline during a 15 year period. I am sure that her experience and financial acumen will be invaluable to Dechra. I would like to take this opportunity to thank Paul Sandland, the Group Financial Controller, who in the interim period between Simon's resignation and Anne-Francoise's appointment, fulfilled the role of acting Group Finance Director with professionalism and commitment.

I am also pleased to report the appointment of Tony Griffin as an Executive Director in November 2012. Following the Eurovet acquisition in spring 2012, the Board identified the requirement for additional resource at Executive Director level and considered that Tony provided the relevant experience to assist in the development and implementation of the Group strategy, particularly given his extensive career in the veterinary pharmaceuticals industry.

In terms of new Non-Executive Director appointments, I am pleased to welcome both Julian Heslop and Ishbel Macpherson to Dechra. Each of whom has a wealth of relevant experience, which will bring valuable insight to the Board as we take Dechra forward into its next stage as a pure play veterinary pharmaceuticals business.

I would like to express my gratitude to Neil Warner who, after over ten years as a Non-Executive Director of Dechra, has expressed his intention to stand down at the 2013 Annual General Meeting. Over the years Neil has provided a valuable contribution as both a Board member and Chairman of the Audit Committee, in particular in terms of finance, risk and governance. On behalf of the Board I wish him well in his future.

The Board is currently undertaking its 2012/2013 evaluation. Following a discussion as to process it has been agreed that an internal evaluation will be held this year but the Board will seek to carry out an external evaluation for 2013/2014. Details of the findings and action points arising from the 2011/2012 evaluation are detailed in the report.

Following the move to our new head office in Northwich, Cheshire it has been decided to hold this year's Annual General Meeting at the new premises. This Meeting provides Shareholders with the opportunity to meet with the Board on an informal basis and I hope that you will be able to attend.

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

Michael Redmond
Non-Executive Chairman
3 September 2013