IMI PLC — AGM Information 2022

Mar 25, 2022

IMI plc Lakeside Solihull Parkway Birmingham Business Park Birmingham B37 7XZ

Registered in England and Wales No. 714275

25 March 2022

Dear Shareholder

Notice of Annual General Meeting

I have pleasure in inviting you to the Annual General Meeting of IMI plc (the 'Company'), which will be held at the Crowne Plaza Hotel, Pendigo Way, Marston Green, Birmingham on 5 May 2022 commencing at 10am (a map can be found on page 11). The formal Notice of Meeting is set out on pages 2 to 5 of this circular followed by explanatory notes on pages 6 to 9. A summary of the principal terms of the IMI US Stock Purchase Plan are contained on page 10.

COVID-19

As at the date of this letter, we are planning to hold an "in person" Annual General Meeting and shareholders are welcome to attend. We will follow any local and/or UK Government advice/guidance in place at the time of the meeting or as otherwise required by the meeting venue. This may include face covering requirements and social distancing measures within public spaces. If we need to change the arrangements for the Annual General Meeting after the date of this letter, we will communicate with shareholders before the meeting through our website (www.imiplc.com) and where appropriate, by RNS announcement.

We trust that all our shareholders will understand the need for precautions and contingency planning in light of Government public health guidelines on COVID-19.

Voting

Shareholders are strongly encouraged to vote by proxy as attendance at the meeting to vote in person may not be possible or prudent due to COVID-19 risk. Instructions on proxy voting are included in this circular.

As in previous years and in line with best practice, voting will be on a poll. The Board believes that voting on a poll will result in the most accurate reflection of the views of shareholders by ensuring that every vote is recognised, including all proxy votes. On a poll, each shareholder has one vote for every share held.

Recommendation

The directors consider that all the resolutions to be put to the Annual General Meeting are in the best interests of the Company and are most likely to promote the success of the Company for the benefit of its shareholders as a whole. The directors unanimously recommend shareholders to vote in favour of the resolutions as they intend to do in respect of their own shareholdings (except in respect of those matters in which they are interested).

Yours faithfully

Lord Smith of Kelvin

Chair

This document is important and requires your immediate attention

If you are in any doubt about its contents or as to the action you should take, you are recommended to consult your stockbroker, bank manager, solicitor, accountant or other independent professional adviser authorised under the Financial Services and Markets Act 2000. If you have sold or transferred all your shares in IMI plc, please pass this document and the accompanying proxy form to the purchaser or transferee, or to the person who arranged the sale or transfer, so they can pass these documents to the person who now holds the shares.

Notice of Meeting

Notice is hereby given that the 60th Annual General Meeting of IMI plc will be held at the Crowne Plaza Hotel, Pendigo Way, Marston Green, Birmingham on Thursday, 5 May 2022 at 10am for the following purposes:

To consider and, if thought fit, to pass the following resolutions, which will be proposed as ordinary resolutions:

• 1. To receive the report of the directors and the accounts of the Company for the year ended 31 December 2021, together with the report of the auditor of the accounts.
• 2. That a final dividend at the rate of 15.8p per share be declared for the year ended 31 December 2021 payable on 13 May 2022 to shareholders on the register at the close of business on 8 April 2022.
• 3. That the Annual Directors' Remuneration Report, which is set out on pages 114 to 129 of the Annual Report and Accounts for the year ended 31 December 2021, be approved.
• 4. That Lord Smith of Kelvin be re-elected as a director of the Company.
• 5. That Thomas Thune Andersen be re-elected as a director of the Company.
• 6. That Caroline Dowling be re-elected as a director of the Company.
• 7. That Katie Jackson be re-elected as a director of the Company.
• 8. That Dr Ajai Puri be re-elected as a director of the Company.
• 9. That Isobel Sharp be re-elected as a director of the Company.
• 10. That Daniel Shook be re-elected as a director of the Company.
• 11. That Roy Twite be re-elected as a director of the Company.
• 12. That the maximum fees of Directors permitted under article 60 of the Company's Articles of Association be increased from £750,000 to £1.25m.
• 13. That Deloitte LLP be re-appointed as the Company's auditor until the conclusion of the next general meeting of the Company at which accounts are laid before the meeting.
• 14. That the Audit Committee on behalf of the Board be authorised to determine the auditor's remuneration.
• 15. That:
• (a) the directors be authorised to allot shares in the Company or grant rights to subscribe for, or convert any security into, shares in the Company:

• (i) in accordance with article 7 of the Company's articles of association, up to a maximum nominal amount of £24,800,000 (such amount to be reduced by the nominal amount of any equity securities (as defined in article 8 of the Company's articles of association) allotted under paragraph (ii) below in excess of £24,800,000; and

• (ii) comprising equity securities (as defined in article 8 of the Company's articles of association), up to a maximum nominal amount of £49,600,000 (such amount to be reduced by any shares allotted or rights granted under paragraph (i) above) in connection with an offer by way of a rights issue (as defined in article 8 of the Company's articles of association);

• (b) this authority shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution, or, if earlier, at the close of business on 1 July 2023; and
• (c) all previous unutilised authorities under Section 551 of the Companies Act 2006 shall cease to have effect (save to the extent that the same are exercisable pursuant to Section 551(7) of the Companies Act 2006 by reason of any offer or agreement made prior to the date of this resolution which would or might require shares to be allotted or rights to be granted on or after that date).
• 16. That, in accordance with Sections 366 and 367 of the Companies Act 2006, the Company and all companies that are subsidiaries of the Company at any time during the period for which this resolution has effect be and are hereby authorised to:
• (a) make political donations to political parties or independent election candidates not exceeding £50,000 in total;
• (b) make political donations to political organisations other than political parties not exceeding £50,000 in total; and
• (c) incur political expenditure not exceeding £50,000 in total;

during the period beginning with the date of the passing of this resolution and ending at the conclusion of the next Annual General Meeting of the Company or 1 July 2023, whichever is the earlier, provided that the aggregate amount of any such donations and expenditure referred to in (a), (b) and (c) shall not exceed £50,000 (and may consist of sums in any currency converted into sterling at such rate as the directors may in their absolute discretion determine). For the purposes of this resolution the terms 'political donations', 'political parties', 'independent election candidates', 'political organisations' and 'political expenditure' shall have the meanings set out in Sections 363 to 365 of the Companies Act 2006.

• 17. That:
• (a) the rules of the IMI US Stock Purchase Plan (the "US Stock Purchase Plan Rules"), the principal terms of which are summarised in the Appendix to this notice of annual general meeting and which are produced in draft to this meeting and, for the purposes of identification, have been initialled by the Chair, are hereby approved and adopted; and
• (b) the directors be and are hereby authorised to do all such acts and things as they consider necessary or desirable to implement the US Stock Purchase Plan Rules.

To consider and, if thought fit, to pass the following resolutions, which will be proposed as special resolutions:

• A. That if ordinary resolution 15 is passed (and in substitution for all subsisting authorities to the extent unused), the directors be authorised to allot equity securities (as defined in article 8 of the Company's articles of association) for cash under the authority given by that resolution and/or to sell ordinary shares held by the Company as treasury shares for cash as if Section 561 of the Companies Act 2006 did not apply to any such allotment or sale, such authority to be limited to:
• (a) allotment in connection with an offer of securities (but in the case of the authority granted under ordinary resolution 15(a) (ii) by way of rights issue only); and
• (b) the allotment of equity securities or sale of treasury shares (otherwise than under paragraph (a) above) up to a nominal amount of £3,900,000;

such authority to expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution or, if earlier, at the close of business on 1 July 2023 but, in each case, prior to its expiry the Company may make offers and enter into agreements, which would, or might, require equity securities to be allotted (and treasury shares to be sold) after the authority expires and the Board may allot equity securities (and sell treasury shares) under any such offers or agreements as if the authority had not expired.

• B. That if ordinary resolution 15 is passed, the Board be authorised, in addition to any authority granted under special resolution A, to allot equity securities (as defined in article 8 of the Company's articles of association) for cash under the authority given by that resolution and/or to sell ordinary shares held by the Company as treasury shares for cash as if Section 561 of the Companies Act 2006 did not apply to any such allotment or sale, such authority to be limited:
• (a) only for the purposes of financing (or refinancing, if the authority is to be used within six months after the original transaction) a transaction which the Board of the Company determines to be an acquisition or other capital investment of a kind contemplated by the Statement of Principles on Disapplying Pre-Emption Rights most recently published by the Pre-Emption Group prior to the date of this Notice; and
• (b) to the allotment of equity securities or sale of treasury shares up to a nominal amount of £3,900,000;

such authority to expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution or, if earlier, at the close of business on 1 July 2023 but, in each case, prior to its expiry the Company may make offers and enter into agreements, which would, or might, require equity securities to be allotted (and treasury shares to be sold) after the authority expires and the Board may allot equity securities (and sell treasury shares) under any such offers or agreements as if the authority had not expired.

• C. That, in accordance with the Companies Act 2006, the Company is generally and unconditionally authorised to make market purchases (within the meaning of Section 693 of the Companies Act 2006) of ordinary shares of 28 4/7p each in the capital of the Company ('ordinary shares') on such terms and in such manner as the directors of the Company may from time to time determine provided that:
• (a) the maximum aggregate number of ordinary shares that may be purchased under this authority is 26,000,000;
• (b) the minimum price which may be paid shall be 28 4/7p per ordinary share (exclusive of expenses, if any, payable by the Company in connection with the purchase);
• (c) the maximum price (exclusive of expenses, if any, payable by the Company in connection with the purchase) which may be paid for an ordinary share purchased under this authority shall not be more than the higher of:
• (i) 105% of the average of the middle market prices shown in the quotations for ordinary shares in the London Stock Exchange Daily Official List for the five business days before the day on which that ordinary Share is purchased; and
• (ii) the amount equal to the higher price of the last independent trade of an ordinary share and the highest current independent bid on the trading venues where the purchase is carried out;
• (d) the authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution or, if earlier, at the close of business on 1 July 2023 unless renewed before that time save that the Company may make a contract or contracts to purchase ordinary shares under this authority before its expiry which will or may be executed wholly or partly after the expiry of this authority, and may make a purchase of ordinary shares in pursuance of any such contract; and
• (e) all existing authorities for the Company to make market purchases of ordinary shares are revoked, except in relation to the purchase of shares under a contract or contracts concluded before the date of this resolution and which has or have not yet been executed.
• D. That, in accordance with the Company's articles of association, a general meeting (other than an annual general meeting) may be called on not less than 14 working days' notice.

By order of the Board

Louise Waldek

Company Secretary

25 March 2022

Registered Office: Lakeside, Solihull Parkway, Birmingham Business Park, Birmingham B37 7XZ www.imiplc.com

Additional Information

• 1. A member may appoint a proxy to exercise all or any of his/ her rights to attend and to speak and vote on his/her behalf at the meeting. A member may appoint more than one proxy in relation to the Annual General Meeting provided that each proxy is appointed to exercise the rights attached to a different share or shares held by that member. A proxy need not be a member of the Company but must attend the Annual General Meeting to represent you. A proxy could be the Chair, another director of the Company or another person who has agreed to represent you.
• 2. To be valid, any proxy form or other instrument appointing a proxy and power of attorney or other authority, if any, under which it is signed or a notarially certified or office copy of such power or authority must be received by post or (during normal business hours only) by hand by Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA not later than 48 hours before the time fixed for the meeting or any adjournment thereof. Completion and return of the form of proxy will not prevent a member from attending and voting at the meeting instead of the proxy if they so wish. Amended instructions must also be received by Equiniti by the deadline for receipt of proxy forms. A member must inform Equiniti in writing of any termination of the authority of a proxy.
• 3. As an alternative to completing and returning the printed form of proxy, a member may submit your proxy appointment electronically by accessing www.sharevote.co.uk where full details of the procedure are given. For security purposes, members will need their voting ID, task ID and shareholder reference number as printed on the form of proxy in order to validate the submission of their proxy appointment on-line. Any such proxy appointment must be received not later than 48 hours before the time fixed for the meeting or any adjournment thereof. To appoint more than one proxy electronically, please contact Equiniti on 0371 384 2040 (from overseas +44 (0)371 384 2040. Lines are open 8.30am to 5.30pm, Monday to Friday (excluding public holidays in England and Wales)).
• 4. If a member has more than one holding registered in his/ her name he/she should receive no more than one copy of the Annual Report and one form of proxy which will be valid in respect of all his/her shareholdings. A form of proxy is enclosed. To request a form of proxy please contact Equiniti on 0371 384 2040 (from overseas +44 (0)371 384 2040. Lines are open 8.30am to 5.30pm, Monday to Friday (excluding public holidays in England and Wales)).

• 5. Any person to whom this Notice is sent who is a person nominated under Section 146 of the Companies Act 2006 ('CA 2006') to enjoy information rights (a 'Nominated Person') may, under an agreement between him/her and the shareholder by whom he/she was nominated, have the right to be appointed (or to have someone else appointed) as a proxy for the Annual General Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may, under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights.

• 6. The statement of rights of shareholders in relation to the appointment of proxies in notes 1, 2 and 3 above to this Notice of Annual General Meeting does not apply to Nominated Persons. The rights described in these sections can only be exercised by the shareholders of the Company. Nominated Persons are reminded that they should contact the registered holder of their shares (and not the Company) on matters relating to their investments in the Company.

• 7. The Company specifies that only those shareholders registered in the register of members of the Company as at 6.30pm on 3 May 2022 (or, in the event of any adjournment, at 6.30pm on the date which is two days before the time of the adjourned meeting) shall be entitled to attend (in person or by proxy) or vote at the meeting or any adjourned meeting in respect of the number of shares registered in their name at that time. Changes to entries on the register of members made after the relevant deadline shall be disregarded in determining the rights of any person to attend or vote at the meeting.
• 8. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the Annual General Meeting to be held on 5 May 2022 and any adjournment(s) thereof by using the procedure described in the CREST manual. CREST personal members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.

In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a 'CREST Proxy Instruction') must be properly authenticated in accordance with Euroclear UK & Ireland's specifications and must contain the information required for such instructions as described in the CREST manual (available at www.euroclear. com). The message, regardless of whether it constitutes the appointment of a proxy or relates to an amendment to the instruction given to a previously appointed proxy must, in order to be valid, be transmitted so as to be received by the issuer's agent (ID RA19) by the latest time(s) for receipt for proxy appointments specified in the Notice of Annual General Meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Application Host) from which the issuer's agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time any change of instructions to proxies appointed through CREST should be communicated to the appointee through other means.

CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear UK & Ireland does not make available special procedures in CREST for any particular messages. Normal system timings and limitations will apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take, (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure that his/her CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsor(s) or voting service provider(s) are referred, in particular, to those sections of the CREST manual concerning practical limitations of the CREST system and timings. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in regulation 35(5)(a) of the Uncertificated Securities Regulations 2001 (as amended).

• 9. Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of the same powers as the corporation could exercise if it were an individual member provided that they do not do so in relation to the same shares.
• 10. As at 15 March 2022 (being the last practicable business day prior to the publication of this Notice) the Company's issued share capital consists of 274,929,215 ordinary shares, carrying one vote each of which 14,248,836 are held in treasury. Therefore, the total exercisable voting rights in the Company as at 15 March 2022 are 260,680,379.
• 11. Copies of the renewed US Stock Purchase Plan rules, service contracts of executive directors, letters of appointment for non-executive directors, directors' deeds of indemnity and a copy of the Company's articles of association are available for inspection at the Company's registered office on each business day during normal business hours and will also be available at the place of the Annual General Meeting from at least 15 minutes prior to the meeting and until the conclusion of the meeting.

• 12. It is possible that, pursuant to requests made by members of the Company under Section 527 of the CA 2006, the Company may be required to publish on its website a statement setting out any matter relating to: (a) the audit of the Company's accounts (including the auditor's report and the conduct of the audit) that are to be laid before the Annual General Meeting; or (b) any circumstance connected with an auditor of the Company ceasing to hold office since the previous meeting at which annual accounts and reports were laid. The Company may not require the shareholders requesting any such website publication to pay its expenses in complying with Sections 527 or 528 of the CA 2006. Where the Company is requested to place a statement on a website under Section 527 of the CA 2006 it must forward the statement to the Company's auditor not later than the time when it makes the statement available on the website. The business which may be dealt with at the Annual General Meeting includes any statement that the Company has been required under Section 527 of the CA 2006 to publish on its website.

• 13. A member attending the meeting has the right to ask questions relating to the business being dealt with at the meeting in accordance with Section 319A of the CA 2006. The Company must answer any such question but no such answer need be given if: (a) to do so would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information; (b) the answer has already been given on a website in the form of an answer to a question; or (c) it is undesirable in the interests of the Company or the good order of the meeting that the question be answered.

• 14. A copy of this Notice of Annual General Meeting and other information required by Section 311A of the CA 2006 can be found at www.imiplc.com.
• 15. Members who have general queries about the meeting should address such questions, in the first instance, to the Company's Registrars, Equiniti 0371 384 2040 (from overseas +44 (0)371 384 2040. Lines are open 8.30am to 5.30pm, Monday to Friday (excluding public holidays in England and Wales)). Members may not use any electronic address provided in this Notice of Annual General Meeting or any related documents to communicate with the Company for any purposes other than those expressly stated.
• 16. Voting at the meeting on all resolutions will be conducted by way of a poll rather than a show of hands. The Company considers this to be a more transparent method of voting as member votes will be counted according to the number of shares held. As soon as practicable following the meeting, the results of the voting at the meeting and the number of proxy votes cast for and against and the number of votes actively withheld in respect of each of the resolutions proposed at the meeting will be announced via a Regulatory Information Service and also placed on the Company's website.

Explanatory notes to the resolutions in the Notice of Annual General Meeting

The Annual Report and Accounts and final dividend (ordinary resolutions 1 and 2)

The directors are required to present to shareholders at the Annual General Meeting the Annual Report and Accounts for the year ended 31 December 2021 ('Annual Report 2021'), together with the Directors' and Auditor's reports on the Annual Report 2021, and this is provided for in ordinary resolution 1.

Ordinary resolution 2 follows the directors' recommendation for the declaration of a final dividend in respect of 2021 of 15.8p per share payable on 13 May 2022 to shareholders on the register on 8 April 2022. The level of dividend proposed is aligned with the dividend policy announced with the interim results in July 2021.

The Annual Directors' Remuneration Report (ordinary resolution 3)

The Annual Directors' Remuneration Report, included in the 2021 Annual Report on pages 114 to 129, will be put to shareholders for approval at the Annual General Meeting (ordinary resolution 3). This vote on the former is advisory, and the directors' entitlement to remuneration is not conditional on it.

Re-election of directors (ordinary resolutions 4 to 11)

In accordance with the 2018 UK Corporate Governance Code, all serving directors voted into office at last year's Annual General Meeting will retire and seek re-election at the Annual General Meeting.

Specific reasons why the contribution of the directors is, and continues to be, important to the Company's long term sustainable success are: (i) following formal performance evaluations for those serving in 2021, each director evaluated is considered to make an effective and valuable contribution to the Board and the committees on which they sit and each continues to demonstrate commitment to their role (details of the Board evaluation process can be found on page 100 of the Annual Report 2021), (ii) all directors continue to demonstrate a level of expertise and experience that the Chair considers important to the future needs of the Board. In particular this relates to strategy input, sector expertise, corporate governance experience and/or experience of international markets, and (iii) each director has demonstrated an ability to effectively contribute to the Company both at, and outside of, Board meetings.

Biographical details of all directors can be found on pages 82 and 83 of the Annual Report 2021. This includes a statement for each director advising why their contribution is and continues to be important to the Company's long term success.

Lord Smith of Kelvin, Chair from 2015

Lord Smith was appointed to the Board on 7 May 2015 and has significant UK and international board experience with an extensive knowledge of both engineering and manufacturing, a strong track record in private equity, mergers and acquisitions and specialist capability in finance.

Lord Smith is currently non-executive Chairman of Scottish Enterprise and non-executive Chairman of the British Business Bank plc.

Extensive international business, sector and board level experience enables Lord Smith's valuable leadership of the Board and drives his commitment to robust corporate governance.

Thomas Thune Andersen, Senior Independent Director

Thomas Thune Andersen was appointed to the Board on 1 July 2018 and is an experienced business leader in sectors including oil, energy, marine and critical infrastructure, has broad experience as a non-executive director of various public companies and has special interest in ESG matters in particular corporate governance and climate change issues.

Thomas is currently Chairman of Lloyds Register Group, Chairman of Orsted A/S, non-executive Director of Green Hydrogen Systems, Member of the Danish Committee for Good Corporate Governance, Non-executive director of BW Group Ltd and Chairman of VRK Holdings A/S.

Thomas brings a wealth of international business and board level experience to his role as Senior Independent Director and draws on his broad knowledge and personal interest in sustainability and culture when performing his designated employee engagement and ESG activities.

Caroline Dowling, non-executive Director

Caroline Dowling was appointed to the Board on 1 January 2020 and has a successful executive career in the technology sector with an industry-leading Fortune Global 500 company with operations in 30 countries. Caroline has senior executive leadership roles across international operations including supporting complex supply chains.

Caroline is currently non-executive Director of DCC plc, nonexecutive Director of Tyndall National Institute and non-executive Director of CRH plc.

Caroline brings substantial, global board level experience and expertise in digital, technology and supply chain management. Her experience serving on remuneration committees enables her to chair the Remuneration Committee effectively.

Katie Jackson, non-executive Director

Katie Jackson was appointed to the Board on 1 July 2018 and has senior executive experience in major oil companies and investment banking, specialist knowledge of the Oil & Gas sector and excellent corporate finance experience including mergers and acquisitions.

Katie is currently Executive Vice President Acquisition, Divestment and New Business Development at Royal Dutch Shell.

Drawing on her broad, international business and executive experience, Katie shares valuable insights on strategy, M&A and new business development.

Dr Ajai Puri, non-executive Director

Dr Ajai Puri was appointed to the Board on 1 March 2021 and is experienced in international business, expert in innovation, science and technology and marketing. Ajai holds a PhD in Food Science and worked for The Coca-Cola Company in a variety of roles in research and development, innovation, consumer marketing and general management, rising to Senior Vice President.

Ajai is currently non-executive Director of Britannia Industries Limited, India, non-executive Director of Olam International Limited and member of the Audit, Capital and Investment, Corporate Responsibility and Sustainability Committee.

Ajai brings significant global business and board level experience, as well as expertise in driving innovation and developing new business to support delivery of the Group's strategy.

Isobel Sharp, non-executive Director

Isobel Sharp was appointed to the Board on 1 September 2015 and has governance and transactions experience including time as a member of the UK Accounting Standards Board and the Reporting Review Panel and has worked with many international businesses on strategy, risk and sustainability matters.

Isobel is currently non-executive Director and Audit Committee Chair of The Bankers Investment Trust PLC and Member of the International Advisory Board at Edinburgh University Business School.

Isobel contributes her extensive financial experience and a strong understanding of the audit and regulatory landscape to chair the Audit Committee effectively and bring a strong focus on governance.

Daniel Shook, Finance Director

Daniel Shook was appointed to the Board on 1 January 2015 and has extensive financial management experience, extensive knowledge of complex process manufacturing across a range of industrial sectors and strong international perspective, having worked in a number of key geographies during his time with two leading global businesses.

Daniel is currently non-executive Director and Chair of Audit Committee of Ultra Electronics Holdings plc.

Daniel contributes his considerable global, financial and business development experience from large multinational companies to drive strong financial leadership and support the growth of the Group.

Roy Twite, Chief Executive

Roy Twite was appointed to the Board on 1 February 2007 and Chief Executive in 2019.

Roy has proven organisational and engineering expertise, management capability having run all of IMI's divisions and extensive knowledge of end-markets and customer base.

Roy is currently non-executive Director of Halma plc.

Drawing on his general management and operational experience, Roy brings clear strategic leadership and a deep understanding of the engineering sector, the Group's divisions and stakeholders to lead and inspire the Group.

Increase in the fee limit permitted to be paid to Directors (ordinary resolution 12)

The current maximum fees permitted to be paid to non-executive Directors under the Company's Articles of Association is limited to £750,000. This can be changed by Ordinary Resolution of the Company in general meeting. The current limit has been in place since 2010. Resolution 12 seeks shareholder approval to increase this limit from £750,000 to £1.25m. This proposed increase takes account of current and anticipated remuneration levels and will also provide greater flexibility should any future growth of the Board be desirable.

Auditor

(ordinary resolutions 13 and 14)

The Company is required to appoint an external auditor at each general meeting at which accounts are laid before its shareholders to hold office until the conclusion of the next such meeting.

The Audit Committee has reviewed the effectiveness, independence and objectivity of the external auditor, Deloitte LLP, on behalf of the Board, who now recommend the re-appointment.

Resolutions 13 and 14, respectively, propose the re-appointment of Deloitte LLP as the Company's auditor and authorise the Audit Committee on behalf of the Board to set its remuneration.

Explanatory notes to the resolutions in the Notice of Annual General Meeting

Authority to allot securities (ordinary resolution 15)

Authority was granted to the directors at the Annual General Meeting of the Company held on 6 May 2021 under Section 551 of the Companies Act 2006 ('CA 2006') to allot ordinary shares or grant rights to subscribe for or convert any security into ordinary shares in the Company. The directors consider it appropriate to renew this authority at the forthcoming Annual General Meeting for a period expiring at the conclusion of the Annual General Meeting to be held in 2023 or, if earlier, on 1 July 2023.

Paragraph (a)(i) of ordinary resolution 14 will allow the directors to allot ordinary shares up to a maximum nominal amount of £24,800,000, representing approximately one third (33.33%) of the Company's existing issued share capital (excluding shares held in treasury), calculated as at 15 March 2022 (being the latest practicable date prior to publication of this Notice). In accordance with institutional guidelines issued by The Investment Association, paragraph (a)(ii) of ordinary resolution 15 will allow the directors to allot, including the ordinary shares referred to in paragraph (a)(i) of ordinary resolution 15, additional ordinary shares in connection with a pre-emptive offer by way of a rights issue to ordinary shareholders up to a maximum nominal amount of £49,600,000, representing approximately two thirds (66.67%) of the Company's existing issued share capital (excluding shares held in treasury), calculated as at 15 March 2022.

The proposed new authority will expire at the conclusion of the 2023 Annual General Meeting of the Company or, if earlier, on 1 July 2023. It is the current intention to renew this authority annually. The directors have no present intention of exercising this authority. However, if they do exercise it, they intend to follow best practice as regards its use, as recommended by The Investment Association.

As at 15 March 2022, the Company's issued share capital amounted to £78,551,204 comprising 274,929,215 ordinary shares of 28 4/7p each and the Company held 14,248,836 ordinary shares in treasury, representing approximately 5% of the Company's issued share capital.

Authority to make political donations and incur political expenditure (ordinary resolution 16)

Subject to limited exceptions, the Companies Act 2006 imposes restrictions on companies making political donations to any political party or other political organisation or to any independent election candidate or incurring political expenditure unless they have been authorised to do so at a general meeting.

The resolution in this connection passed at last year's Annual General Meeting is due for renewal.

Neither the Company nor any of its subsidiaries has any intention of making any political donation or incurring any political expenditure under the terms of the proposed resolution. However, the CA 2006 defines 'political party', 'political organisation', 'political donation' and 'political expenditure' widely and grey areas remain which lead many UK public limited companies to seek shareholder approval for what may inadvertently amount to a political donation.

Accordingly, in line with best practice, the Company wishes to ensure that neither it nor its subsidiaries risks any breach of the CA 2006 through the undertaking of routine activities, which would not normally be considered to result in the making of political donations and political expenditure being incurred. The proposed authority will expire at the conclusion of the 2023 Annual General Meeting of the Company or, if earlier, on 1 July 2023.

Adoption of the IMI US Stock Purchase Plan (the "US Stock Purchase Plan") (ordinary resolution 17)

Grants of options under the US Stock Purchase Plan to US tax-resident employees are intended to qualify for beneficial tax treatment pursuant to Section 423 of the United States Internal Revenue Code 1986 (as amended). One of the conditions for options granted under the US Stock Purchase Plan to qualify for the intended beneficial tax treatment is that the establishment of the US Stock Purchase Plan, and specifically the maximum number of shares which may be the subject of options pursuant to the US Stock Purchase Plan, be approved by the Company's shareholders.

Shareholder approval is being sought to approve (i) the establishment of the US Stock Purchase Plan and (ii) the maximum limit on the number of shares which may be issued pursuant to options granted under the US Stock Purchase Plan (which shall be 10% of the Company's issued share capital on 15 March 2022 (being the latest practicable date before the date of this document) and therefore 27,492,922 shares in the capital of the Company in order to satisfy the requirements of the relevant US legislation.

The US Stock Purchase Plan operates within the overall 10% dilution limit which applies to the other share plans operated by the Company.

The Company will manage its capacity within this limit carefully and may use new issue shares, treasury shares and shares purchased in the market to satisfy options.

The main provisions of the US Stock Purchase Plan are summarised in the Appendix to this notice of annual general meeting.

Disapplication of statutory pre-emption rights (special resolutions A and B)

Special resolutions A and B will allow the directors to allot equity securities for cash pursuant to the authority under ordinary resolution 15, or by way of a sale of treasury shares, without in the first instance offering them to existing shareholders in proportion to their holdings. The authority sought will authorise the directors to issue shares in connection with: (a) a rights issue or other pre emptive offer and otherwise to issue shares for cash up to a nominal value of £3,900,000 which includes the sale on a non pre-emptive basis of any shares the Company holds in treasury for cash. This amount represents just under 5% of the total ordinary share capital in issue at 15 March 2022 (being the latest practicable date prior to publication of this Notice); and in addition, (b) the financing (or re financing, if the authority is to be used within 6 months after the original transaction) for an acquisition or other capital investment which the Board determines to be as contemplated by the Pre Emption Group's Statement of Principles, to issue shares for cash up to a nominal value of £3,900,000 which includes the sale on a non pre- emptive basis of any shares the Company holds in treasury for cash. This amount also represents just under 5% of the total ordinary share capital in issue at 15 March 2022.

This dis-application authority is in line with guidance with the Pre Emption Group's Statement of Principles. The authority will expire at the conclusion of the 2023 Annual General Meeting of the Company or, if earlier, on 1 July 2023. It is the current intention to renew this authority annually.

The directors have no present intention of exercising their authority under special resolutions A and B and further confirm that they have no present intention to issue more than 7.5% of the issued share capital of the Company for cash on a non pre-emptive basis pursuant to the authority in special resolution A in any rolling three- year period without prior consultation with the shareholders.

Purchase by the Company of its own shares (special resolution C)

Renewal of the authority for the Company to purchase its own shares will be sought at the Annual General Meeting. The resolution is to authorise the Company to buy back up to 26,000,000 ordinary shares. The resolution specifies the maximum number of ordinary shares which may be purchased, representing nearly 10% of the Company's issued ordinary share capital as at 15 March 2022 (excluding shares held in treasury) and the maximum and minimum prices at which they may be bought, exclusive of expenses, reflecting the requirements of the Companies Act 2006 and the Listing Rules. The directors have no present intention of exercising the authority to purchase the Company's ordinary shares and would only exercise this authority if they were satisfied that any purchase is in the interests of shareholders and will result in an increase in earnings per share of the ordinary share capital in issue after the purchase.

The directors would also give careful consideration to the gearing levels of the Company and its general financial position. The purchase price would be paid out of distributable profits. This authority will expire at the conclusion of the 2023 Annual General Meeting of the Company or, if earlier, on 1 July 2023. It is the current intention to renew this authority annually.

The CA 2006 enables certain listed companies to hold shares in treasury, as an alternative to cancelling them, following a purchase of own shares. Shares held in treasury may subsequently be cancelled, sold for cash or used to satisfy share options and share awards under employee share schemes.

Once held in treasury, the Company is not entitled to exercise any rights, including the right to attend and vote at meetings in respect of the shares. Further, no dividend or other distribution of the Company's assets may be made to the Company in respect of the treasury shares.

Accordingly, if the directors exercise this authority to purchase shares, the Company will have the option of holding those shares in treasury. Following a purchase of own shares by the Company, the directors may consider holding them in treasury.

The total number of ordinary shares in respect of which there are options or warrants or awards that are outstanding under the Company's share schemes and which are to subscribe for ordinary shares or which could result in the subscription of ordinary shares as at 15 March 2022 (being the latest practicable date prior to publication of this Notice) was 310,843. The proportion of issued ordinary share capital (excluding treasury shares) that the options represented on this date was approximately 0.11% and the proportion of issued ordinary share capital (excluding treasury shares) that they will represent if the full authority to purchase shares (being sought) is used is approximately 0.12%.

Notice of general meetings (special resolution D)

The CA 2006 provides that the notice period required for general meetings of the Company is 21 days. However, shareholders may approve a shorter notice period, which cannot however be less than 14 clear days for general meetings, other than annual general meetings that must be held on at least 21 clear days' notice. It is proposed to seek renewal of the authority that was granted to the directors at the Annual General Meeting in 2010 to call general meetings other than an Annual General Meeting on not less than 14 working days' notice. The authority granted by this resolution, if passed, will be effective until the Company's next Annual General Meeting, when it is intended that a similar resolution will be proposed. The flexibility offered by this resolution will be used where, taking into account the circumstances (and noting the guidance issued by ISS), the directors consider this appropriate in relation to the business of the meeting and in the interests of the Company and shareholders as a whole.

Summary of the principal terms of the IMI US Stock Purchase Plan (the "US Stock Purchase Plan")

The US Stock Purchase Plan is an all-employee savings related stock purchase plan similar in nature to the IMI Sharesave Plan. The US Stock Purchase Plan has been designed to qualify under section 423 of the US Internal Revenue Code of 1986 (as amended) giving US participants' tax and social security benefits on any gains made under the US Stock Purchase Plan.

Eligibility

Any employee or full-time director of the Company's group is eligible to participate in the US Stock Purchase Plan, although participation can be restricted to employees who have completed a qualifying period of service.

Savings

Participants must make contributions to a savings contract related to their options granted under the US Stock Purchase Plan. Savings contracts may not exceed 24 months in length. The total contributions a participant can make under the US Stock Purchase Plan (when aggregated with any contributions he makes under any similar plan operated by the Company's group) will be limited to an aggregate of \$500 per fortnightly pay period (or such other amount as the Board shall determine).

Grant of options

Options may be granted over shares or American Depository Receipts representing such shares ('Option Shares'). Option Shares used in connection with the US Stock Purchase Plan may be newly issued Option Shares, treasury Option Shares or Option Shares purchased in the market.

The exact number of Option Shares can be determined either at the time of grant based on the projected proceeds on maturity of the related savings contract or at the end of the specified savings period based on the total contributions that an employee has made over that period. In either case, at the end of the savings period, the options will become exercisable and Option Shares can be purchased. It is the current intention that the number of Option Shares subject to options will be calculated at the time options are granted.

No options may be granted later than ten years after the date on which the US Stock Purchase Plan is approved by shareholders.

In any event, no options may be granted in a given calendar year over Option Shares worth in excess of \$25,000 (at the time of grant). In practice, the maximum number of Option Shares that a participant may acquire in any 27 month period during the life of the US Stock Purchase Plan may not exceed the number of Option Shares which could have been bought with 24 monthly contributions made at the maximum level permitted (currently \$500 per fortnightly pay period) at 85% of the fair market value of an Option Share at the time of grant of an option.

Option price

The price payable for each Option Share shall be determined by the Board, provided that it is not less than the lower of 85% of the fair market value of an Option Share on (i) the date of grant or (ii) the date of exercise. In practice, it is intended to set the option price by reference to the fair market value at the date of grant, which reflects the way in which the IMI Sharesave Plan operates. Unless the Board determines otherwise, the option price set on grant will be calculated by reference to the Company's share price over the preceding ten dealing days.

When the option price is set by reference to the Company's share price at the time of grant, the option price will be determined by reference to dealing days which fall within six weeks of the announcement by the Company of its results for any period or the adoption of the US Stock Purchase Plan or at any other time when the Board considers the circumstances justify offering options under the US Stock Purchase Plan.

Exercise of options

Provided that an option holder is still an employee of the Company's group at the end of the relevant savings period, he can generally exercise his option and acquire Option Shares at that time. Options will become exercisable at the maturity of the savings contract and, to the extent they are not exercised or have not already lapsed, they will lapse no later than 27 months from the date of grant.

Earlier exercise is permitted, however, in the following circumstances:

• (i) following cessation of employment by reason of death, injury, disability, redundancy, retirement, the business or company that the employee works for ceasing to be part of the Company's group or any other reason the Board in its discretion determines;
• (ii) in the event of a takeover, amalgamation, reconstruction or winding-up of the Company, except in the case of an internal corporate re-organisation when the acquiring company makes an offer to exchange existing options for equivalent new options over shares in a new holding company; and/or
• (iii) if the Board considers it appropriate, in the event of a demerger, special dividend or other similar event is proposed which, in the opinion of the Board, would affect the market value of Option Shares.

Except where stated above, options will lapse on cessation of employment and/or directorship with the Company's group.

The exercise of options will only be permitted to the extent of participants' savings, unless the Board determines otherwise. Where the Board allows participants to 'top up' their savings (for example, to take account of exchange rate fluctuations), where an option is exercised early, the number of Option Shares in respect of which it may be exercised may be time pro-rated to reflect the proportion of the savings contract which has elapsed prior to exercise, unless the Board determines otherwise.

Adjustment of options

If there is a variation in the Company's share capital then the Board may make such adjustment as it considers appropriate to the number of Option Shares under option, the option price, the amount payable on exercise or the maximum number of Option Shares that may be used in connection with the US Stock Purchase Plan.

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