Directors' Remuneration Policy – Clarification

Renishaw plc (the "Company")

Clarification in respect of the proposed 2020 Directors' Remuneration Policy (the "Policy")

In advance of its 2020 Annual General Meeting (2020 AGM), the Company wishes to clarify for shareholders certain aspects of the Policy, as set out in the Annual Report 2020, which will be subject to a binding shareholder vote at the 2020 AGM to be held on Wednesday 30 September 2020.

The Company has engaged with a number of its key shareholders and proxy voting agencies after being made aware of concerns about elements of the Policy, specifically the shareholding requirement for non-CEO executive directors (EDs), at 50% of salary, falling significantly below market practice and the Policy providing for discretion to award long-term incentives on the appointment of new EDs with no specified cap.

On the minimum in-post shareholding requirement, the Remuneration Committee has agreed that, should future EDs be appointed to the Board, their shareholding requirement would be aligned with that of the Chief Executive at 200% of salary. The Company is therefore prepared to commit that, in line with the Chief Executive shareholding, future ED appointments will be required to hold 200% of salary.

On the long-term incentive point, the Policy provides that the aggregate of all incentive opportunities (as a percentage of salary) will not exceed market median, and for an individual ED, total remuneration will not exceed upper quartile. Given this is our policy, and to reassure shareholders on what the maximum award opportunity could be under any long-term incentive for a new ED appointment, for the period of the current policy (3 years), we will commit to the maximum that could be awarded as an LTIP being 200% of salary.

The Annual Report 2020 and the Notice of Annual General Meeting 2020 are available on the Company's website at www.renishaw.com/investor.

For further information, please contact:

Jacqueline Conway

General Counsel & Company Secretary

24 September 2020