Slide 1: PSI acquisition: Strategic expansion in US growth markets
PSI acquisition: Strategic expansion in US growth markets 14 OCTOBER 2015 André Lacroix Edward Leigh Chief Executive Officer Chief Financial Officer www.intertek.com
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains certain forward-looking statements with respect to the financial condition, results, operations and business of Intertek Group plc. These statements and forecasts involve risk and uncertainty because they relate to
Slide 3: PSI acquisition
PSI acquisition Intertek has agreed to acquire Professional Service Industries, Inc. (“PSI”) for $330m1 on a cash and debt free basis, equivalent to a 7.6x multiple based on LTM2 EBITDA of $43m PSI is a US industry leader in materials testing and assurance for the commercial and civil constructi
Slide 4: An industry leader in materials testing and assurance for the commercial and civil construction markets
An Industry leader in materials testing and assurance for the commercial and civil construction markets Founded in 1961, 2,400 people PSI reported 20141 revenue of $254m, EBITDA of $40m, and operating profit of $29m An industry leader in testing and assurance for the US commercial and civil co
Slide 5: Exciting macro and sector growth opportunities
Exciting macro and sector growth opportunities US economic growth US construction US pipelines US: Real GDP US: Total construction starts non- US: Projected pipeline capacity residential / non-building1 15-17E additions2 CAGR $20tn $18.8tn 300 12,000 11,055 miles $18.4tn $17.9tn 1,880 12.7% 10,000 B
Slide 6: Well balanced and diversified portfolio
Well balanced and diversified portfolio Revenue mix By service type Geotechnical Geotechnical NDT Services Services CONSTRUCTION Construction NDT Property & Materials Testing Environmental Services Materials Testing Construction services Hotel Other Property & by end market Infrastructure Utilities
Slide 7: Service complementarity
Service complementarity Broad spectrum of services across construction/building project lifecycle Project Lifecycle Site Selection Product Facilities Property Construction & Design Qualification Management Transfer Soil mechanics Geotechnical Foundation design Pavement design Services Earthw
Slide 8: Building scale in growing markets
Building scale in growing markets Build scale and leadership position in adjacent US growth markets • Strengthen Intertek’s US business in growth sectors of the economy 01 • Expands geographic presence through PSI’s US-wide branch network • Significant revenue and cost synergies • Strong PSI managem
Slide 9: A value accretive transaction
A value accretive transaction Attractive • Price: $330m1 at completion financial terms • LTM EBITDA2 $43m, 7.6x multiple • Attractive revenue growth prospects for PSI Delivering • Expect PSI margin to improve by +300bps over three years value for • Impact on Intertek EPS: 2016 accretive; good long t
Slide 10: Strategic expansion in US growth markets
Strategic expansion in US growth markets Acquisition of a US industry leader in materials testing and 01 assurance for the commercial and civil construction markets Build scale in US construction market with significant growth 02 potential Combine Intertek’s Building business with PSI’s construction
Slide 11: PSI acquisition: Strategic expansion in US growth markets
PSI acquisition: Strategic expansion in US growth markets 14 OCTOBER 2015 André Lacroix Edward Leigh Chief Executive Officer Chief Financial Officer www.intertek.com