Chairman's Introduction

Creating value through leadership in Interventional Medicine Our vision is to be a global leader in Interventional Medicine.

This drives our growth strategy to expand our portfolio of minimally invasive products throughorganic development and acquisitions, and to invest in activities that support sustained product growth. Our Interventional Oncology and Interventional Vascular businesses are performing well. We were pleased to add Roxwood Medical’s specialty catheters into the Interventional Vascular portfolio in October 2017. The earlier-stage assets, Varithena® and the PneumRx® Coils, continue to progress towards key milestones. The fact that the market for the Coils is taking longer to develop than expected, has resulted in an impairment charge of approximately £145m in our results for the year, and we took the decision to reduce costs and to focus on activities to build long-term value. The Pharmaceuticals business has delivered another good performance and continues to generate significant cash that is available for reinvestment. All rights to Vistogard® were returned to Wellstat Therapeutics Corporation following a legal ruling, and we recorded a charge of £57.7m in our full year results to cover the associated damages and costs.

Board changes

Strong corporate governance and leadership is an essential part of BTG's strategy and we strive to maintain the best talent capable of achieving the highest standards.

During the year, Rolf Soderstrom stepped down as Chief Financial Officer (CFO) and as an Executive Director of the Company. The Board is grateful to Rolf for his significant contributions since joining BTG in 2008. I am delighted that Duncan Kennedy has been appointed as his successor. Duncan joined BTG as Group Financial Controller in 2005 and most recently led our Interventional Oncology business. He brings a wealth of financial and commercial experience and we welcome him to the Board.

After almost eleven years, Giles Kerr has announced his intention to step down from the Board at this year’s Annual General Meeting (AGM). During the year we appointed Anne Thorburn who, having previously been Chief Financial Officer of Exova Group PLC, brings an extensive range of international financial management, risk, audit and M&A experience.

We also were pleased to appoint Gregory Barrett to the Board in November 2017. Greg has extensive commercial experience in the US MedTech industry, with a focus on Interventional Medicine therapies. Anne and Greg’s strong track record will be of great benefit to BTG as we continue to implement our growth plans. Further details on the changes to the Board can be found in the corporate governance report on page 37.

With more than 90% of current revenues earned in US dollars, we are going to switch from reporting in Sterling to reporting in US dollars starting with our Interim Results in November 2018. This will help reduce volatility in our reported results caused by exchange rate movements.

Outlook

In the year ahead we expect ongoing growth in our Interventional Oncology and Interventional Vascular businesses, with Pharmaceuticals and Licensing providing strong cash flows that are available for reinvestment.

I continue to be excited by BTG's journey. We are building leading positions in our chosen markets, by providing differentiated, minimally invasive therapies and by investing in activities that help our customers treat more patients. With our financial resources and capabilities, I am confident our strategy will create long-term value for all our stakeholders.

Our products make a real difference to our customers and to their patients’ lives. This is the main motivation for colleagues throughout BTG. I would like to thank all of our employees for their dedication and professionalism, which enable us to serve more physicians and patients every year.