213800AH5RZIHGWRJ7182022-01-012022-12-31iso4217:GBP213800AH5RZIHGWRJ7182021-01-012021-12-31iso4217:GBPxbrli:shares213800AH5RZIHGWRJ7182022-12-31213800AH5RZIHGWRJ7182021-12-31213800AH5RZIHGWRJ7182021-01-01ifrs-full:IssuedCapitalMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:SharePremiumMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:CapitalRedemptionReserveMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:ReserveOfCashFlowHedgesMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:RetainedEarningsMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:EquityAttributableToOwnersOfParentMember213800AH5RZIHGWRJ7182021-01-01ifrs-full:NoncontrollingInterestsMember213800AH5RZIHGWRJ7182021-01-01213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:IssuedCapitalMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:SharePremiumMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:CapitalRedemptionReserveMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:RetainedEarningsMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800AH5RZIHGWRJ7182021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:IssuedCapitalMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:SharePremiumMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:CapitalRedemptionReserveMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:RetainedEarningsMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800AH5RZIHGWRJ7182020-12-31ifrs-full:NoncontrollingInterestsMember213800AH5RZIHGWRJ7182020-12-31213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:IssuedCapitalMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:SharePremiumMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:CapitalRedemptionReserveMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:RetainedEarningsMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800AH5RZIHGWRJ7182022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:IssuedCapitalMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:SharePremiumMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:CapitalRedemptionReserveMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:RetainedEarningsMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800AH5RZIHGWRJ7182022-12-31ifrs-full:NoncontrollingInterestsMember
Annual Report 2022
Delivering
Growth+
Our Growth+ strategy is
specifically designed to
deliver our ambition of mid
tohigh single-digit revenue
growth and mid-20s adjusted
operating margins overtime
Delivering
Growth+
Strategic report
02 Highlights
04 Strategic roadmap
05 At a glance
06 What we do
08 Investment case
10 Chairman’s statement
12 Business model
14 Our market dynamics
16 Managing the cost of
livingcrisis
18 Chief Executive Officer’s
statement
21 Strategy introduction
22 Key performance indicators
24 Target segments
26 Customer value
28 Innovative products & services
30 Sustainability review
76 Divisional review
82 Financial review
86 Risk management
89 Principal risks and uncertainties
98 Viability statement
100 Task Force on Climate-related
Financial Disclosures
111 Non-financial information
statement
114 Section 172 statement
Corporate governance
120 Chairman’s governance
overview
122 Governance at a glance
124 Board of directors
126 Corporate governance report
142 Environmental, Social and
Governance (‘ESG’)
Committeereport
145 Audit Committee report
150 Nomination Committee report
153 Directors’ Remuneration report
182 Directors’ report
185 Statement of directors’
responsibilities for preparing
theAnnual Report and
financialstatements
Financial statements
188 Independent auditor’s report
tothe members of Rotork plc
196 Consolidated income statement
196 Consolidated statement of
comprehensive income
197 Consolidated balance sheet
198 Consolidated statement of
changes in equity
199 Consolidated statement
ofcashflows
200 Notes to the Group
financialstatements
231 Rotork plc Company balance
sheet
232 Rotork plc Company statement
of changes in equity
233 Notes to the Company
financialstatements
238 Ten year trading history
239 Share register information
240 Corporate directory
Contents
01
Rotork
www.rotork.com Annual Report 2022
A strong set of results
Orders (£m)
Revenues (£m)
Adjusted operating
profit (£m) and margin (%)
590
614
682
19 20 21 22
19 20 21 22
19 20 21 22
692
605
569
642
669
143
23.6%
128
22.5%
143
22.3%
151
22.6%
Profit before tax (£m)
Adjusted/
reported EPS (p)
Dividend per share (p)
19 20 21 22
106
124
113
119
12.5
9.8
11.3
9.2
12.7
10.9
13.0
10.3
6.3
6.4
6.7
6.2
Rotork’s 2022 results were strong. Revenues increased 12.8% year-on-year, benefiting
from higher selling price realisation and the second half’s strong recovery in deliveries.
Adjusted operating margins recovered in the second half, however not sufficiently to fully
offset the first half margin decline. In November we launched our Growth+ strategy
which is designed to deliver on our ambition of mid to high single-digit revenue growth
and mid-20s margins over time.
Financial highlights
Orders
+6.8%
Orders were 6.8% higher year-on-year on
an organic constant currency(OCC) basis
Revenues
+8.4%
Sales were 8.4% ahead year-on-year (OCC)
Adjusted operating profit
£143m
Reported operating profit was £124m
Adjusted basic EPS
12.7p
Basic EPS was 10.9p
* Adjusted figures and organic constant currency
(‘OCC’) figures are alternative performance
measures and are used consistently throughout
these results. They are defined in full and
reconciled to the statutory measures in note 2
ofthe Financial Statements.
19 20 21 22
19 20 21 22
Strategic report
02
Rotork
Annual Report 2022 www.rotork.com
Highlights
Kiet Huynh was appointedRotork’s
CEO on10 January 2022
Our Chairman MartinLamb
announced that he will step down on 28
April 2023 after nine years on the Board
Dorothy Thompson CBE
joined the Board as Chair designate
We launched our Growth+ strategy which aims to deliver
on our ambition of mid to high single-digit revenue growth
and mid-20s adjusted operating margins over time
We supported
global charities
and local causes
We were recognised as Best Overall
Company IR (Mid-Cap), at the IR
Society’s Best Practice Awards
Sustainability
We committed to net-zero for scopes
1 and 2 by 2035 and for scope 3 by 2045
Our interim greenhouse gas emissions
reduction targets were validated by
the Science Based Targets initiative
We introduced our ‘eco-transition’
portfolio consisting of our products and
services which have particular
environmental or sustainability benefits
The US signed the Inflation Reduction Act,
the largest ever piece of federal legislation
to address climate change. The Act
specifically targets methane emissions and
water management and conservation
We were ranked in the top 5% globally in
the Machinery and Electrical Equipment
industry by S&P in its highly regarded
Corporate Sustainability Assessment
03
Rotork
www.rotork.com Annual Report 2022
Strategic report Corporate governance
Financial statements
Non-financial
We launched our Growth+ strategy at a Capital Markets Event in
November 2022. Central to the strategy is Rotork’s purpose – keeping
the world flowing for future generations. Growth+ is specifically
designed to deliver our growth ambition through our three pillars of
Target Segments, Customer Value, and Innovative Products & Services,
each underpinned by our ‘Enabling a Sustainable Future’ initiative.
Delivering Growth+
VISION
To be the leader in intelligent flow control
PURPOSE
Keeping the world
flowing for future generations
Enabling a Sustainable Future
Helping customers better their own environmental performance,
whilst at the same time working to improve our own
Target Segments
Innovative Products
& Services
Customer Value
Strategic report
04
Rotork
Annual Report 2022 www.rotork.com
Strategic roadmap
The leading supplier of electric critical
duty actuators and related services to
the global Oil & Gas sector with the
largest installed base and site services
team. Our products and services are
used by customers across their
upstream, midstream and downstream
segments to automate and electrify
processes, assure safety and eliminate
fugitive emissions.
A supplier of specialist actuators and
instruments for niche applications in
thebroad chemical, process industry
and industrial sectors. The division
identifies and solves critical reliability,
efficiency and safety challenges for
customers across a broad range of
endmarkets including decarbonisation,
chemical, HVAC and mining.
Supplier of premium actuators,
predominantly electric, and gearboxes
for applications in the water and power
generation sectors. Our products and
services are used to solve water
management, quality and scarcity
challenges and in climate change
adaptation and alternative energy,
aswell as to automate, electrify and
digitalise our customers’ processes.
Sales
£283m
Sales
£198m
Sales
£160m
Sales growth
9%
Sales growth
24%
Sales growth
8%
Adjusted operating margin
22.6%
Adjusted operating margin
25.8%
Adjusted operating margin
25.2%
Read more P.76 Read more P.78 Read more P.80
At a glance
Divisional split
Rotork is a market-leading global provider of
mission-critical intelligent flow control solutions
Global presence
Americas Europe, Middle East and Africa Asia Pacific
Employees
513 1,698 1,023
Offices
10 24 29
Manufacturing facilities
3 9 4
Sales
£174m £233m £235m
Oil & Gas Chemical, Process
& Industrial
Water & Power
05
Rotork
www.rotork.com Annual Report 2022
Strategic report Corporate governance
Financial statements