Intertek Group plc · LSE:ITRK
Intertek — Investor Presentation (September 2009)
23 slides from Intertek's investor presentation, Sep 15, 2009
Slide 1: Investor Presentation September 2009
Investor Presentation September 2009 For further information contact: Aston Swift VP Investor Relations aston.swift@intertek.com @ +44 (0)20 7396 3400
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains certain for forward-looking ard 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
Slide 3: Profile
Profile • Origins O i i off company go back b k tto 1885 • Floated May 2002 on London Stock Exchange • Entered FTSE 100 in March 2009 • Market capitalisation of £2.0bn on 15 September 2009 • Network of laboratories and offices in more than 100 countries • Over O 24 24,000 000 people l • ITRK.L; ITRK
Slide 4: Our industries
Our industries Our organisation Industries we operate in What we do Supporting our customers in their global trade Our organisation The The industries industries we we operate operate in in What Whatwe wedodo Aerospace & Automotive Testing Consumer Goods Building Products Chemical Inspection Commerc
Slide 5: Financial highlights
Financial highlights For the six months For the twelve months to 30 June 2009 to 31 December 2008 £622.3m £1,003.5m +36.1% at actual +29.4% at actual R Revenue +10.5% at constant +18.7% at constant + 6.1% at constant organic +12.3% at constant organic £103.5m £164.7m Operating O ti + 50.7% at actual
Slide 6: Highlights continued
Highlights continued For the six months For the twelve months to 30 June 2009 to 31 December 2008 £117.1m £194.0m Operating cash flow 1 Up 106.5% Up 30.1% £87.7m £138.6m Profit before tax Up 49 49.9% 9% Up 31 31.0% 0% Diluted adjusted EPS 2 40.2p 67.1p Up p 49.4% Up p 37.5% 1. Operating cash flow is
Slide 7: TIC Industry composition
TIC Industry composition TIC Industry Intertek Total > $100bn Compulsory Third Party ~ 10% Global/ Supply Obligation Chain ~ 45% In house/Outsourced > $50bn Voluntary ~ 45% Regional/ Statutory > $50bn $50b www.intertek.com 7
Slide 8: The growth drivers
The growth drivers www.intertek.com 8
Slide 9: A highly resilient business model
A highly resilient business model • Main M i growth th drivers di iindependent d d t off economic environment • Customer penetration is low • Barriers to entry are high • Balanced portfolio of industries, geographies and customers • Global network www.intertek.com 9
Slide 10: The TIC industry by revenue
0.0 0.5 1.0 1.5 2.0 SG S 2.5£bn B V D ek ra TU V Su d In te rt ek www.intertek.com D TU N V V R he in la nd TU V Ll N or oy d d' s re gi st er A pa ve Eu ro fin s U L A pp lu s C G or L e La bs NV 10 The TIC industry by revenue
Slide 11: Consumer Goods
Consumer Goods 26 1% 26.1% 51 9% 51.9% of Group of Group Revenue Profit Paul Yao Source 2009 1H Revenue & Adjusted Operating Profit Textiles; Toys; Hardlines; Food www.intertek.com 11
Slide 12: Margin improvement: Consumer Goods
Margin improvement Consumer Goods £m @ constant exchange Half Year Organic Change rates 2009 change Revenue 162.5 20.2% 15.9% O Operating ti profit fit 53 7 53.7 29 1% 29.1% 27 3% 27.3% Margin 33.0% +220 bps +310 bps www.intertek.com 12
Slide 13: Commercial & Electrical
Commercial & Electrical 20 1% 20.1% 17 2% 17.2% of Group of Group Revenue Profit Gregg Tiemann Source 2009 1H Revenue & Adjusted Operating Profit Home Appliances; Lighting; Medical; Building; IT & Telecom; HVAC; Automotive www.intertek.com 13
Slide 14: Difficulties in some industries: Commercial & Electrical
Difficulties in some industries Commercial & Electrical £m @ constant exchange Half Year Organic Change rates 2009 change Revenue 125.2 2.5% (0.7)% O Operating ti profit fit 17 8 17.8 7 9% 7.9% (5 5)% (5.5)% Margin 14.2% +70 bps -60 bps Includes £0.5m restructuring www.intertek.com 14
Slide 15: Oil, Chemical & Agri (including Government Services)
Oil, Chemical & Agri (including Government Services) 33 0% 33.0% 19 6% 19.6% of Group of Group Revenue Profit Jay Gutierrez Source 2009 1H Revenue & Adjusted Operating Profit Petroleum; Chemical; Agriculture www.intertek.com 15
Slide 16: Good top line: Oil, Chemical & Agri
Good top line Oil, Chemical & Agri £m @ constant exchange Half Year Organic Change rates 2009 change Revenue 205.6 4.5% 4.5% O Operating ti profit fit 20 3 20.3 (10 6)% (10.6)% (10 6)% (10.6)% Margin 9.9% -160 bps -160 bps www.intertek.com 16
Slide 17: Analytical Services
Analytical Services 10 8% 10.8% 6 3% 6.3% of Group of Group Revenue Profit Dr. Andrew Swift Source 2009 1H Revenue & Adjusted Operating Profit Oil & Gas; Lubricants; Chemical; Pharmaceutical www.intertek.com 17
Slide 18: Steady progress: Analytical Services
Steady progress Analytical Services £m @ constant exchange Half Year Organic Change rates 2009 change Revenue 66.9 5.4% 3.8% O Operating ti profit fit 65 6.5 4 8% 4.8% 7 1% 7.1% Margin 9.7% -10 bps +30 bps www.intertek.com 18
Slide 19: Industrial Services
Industrial Services 6 5% 6.5% 3 5% 3.5% of Group of Group Revenue Profit Stefan Butz Source 2009 1H Revenue & Adjusted Operating Profit Industrial; Systems Certification; Health & Environment www.intertek.com 19
Slide 20: Building scale: Industrial Services
Building scale Industrial Services £m @ constant exchange Half Year Organic Change rates 2009 change Revenue 40.2 67.5% 13.8% O Operating ti profit fit 36 3.6 200 0% 200.0% 75 0% 75.0% Margin 9.0% +400 bps +100 bps www.intertek.com 20
Slide 21: Minerals
Minerals 3 5% 3.5% 1 5% 1.5% of Group of Group Revenue Profit Marc Hoffer Source 2009 1H Revenue & Adjusted Operating Profit Mining and Exploration www.intertek.com 21
Slide 22: Reduced demand: Minerals
Reduced demand Minerals £m @ constant exchange Half Year Organic Change rates 2009 change Revenue 21.9 0.9% (3.3)% O Operating ti profit fit 16 1.6 (44 8)% (44.8)% (40 7)% (40.7)% Margin 7.3% -610 bps -490 bps www.intertek.com 22
Slide 23: Outlook
Outlook • An excellent half year result • Expect good organic revenue growth for full year • Demonstrates resilience of business model • Medium and longer term outlook positive • A Acquisition i iti opportunities t iti opening i up www.intertek.com 23
Intertek Group — Investor Presentation (September 2009) on 6ix