Intertek Group Plc · LSE:ITRK
Intertek — Merger or Acquisition (May 2021)
11 slides from Intertek's merger presentation, May 13, 2021
Slide 1: Intertek Expands Its Global Assurance Offering with the Acquisition of SAI Global Assurance
INTERTEK EXPANDS ITS GLOBAL ASSURANCE OFFERING WITH THE ACQUISITION OF SAI GLOBAL ASSURANCE A global leader in Assurance across the world 13 May 2021
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
Slide 3: Executive Summary
EXECUTIVE SUMMARY • The ATIC industry is expected to grow faster in the post COVID-19 world given the increased corporate focus on risk-based quality assurance • Assurance is mission critical to addressing the increased corporate focus on risk and is a capital-light, high- growth and high-margin ser
Slide 4: COVID-19 Has Made the Case for Total Quality Assurance Stronger
COVID-19 HAS MADE THE CASE FOR TOTAL QUALITY ASSURANCE STRONGER TESTING, INSPECTION & CERTIFICATION PROVIDES QUALITY & SAFETY CONTROLS SUPPLY PRODUCTION DISTRIBUTION RETAIL TIER 3 TIER 2 TIER 1 3RD PARTY OWNED TRANSPORTATION DISTRIBUTION CENTRES IN-STORE ONLINE CONSUMER ASSURANCE TESTING TESTING RIS
Slide 5: Increased Corporate Focus on Risk Post COVID-19
INCREASED CORPORATE FOCUS ON RISK POST COVID-19 SAFER SUPPLY LOW CARBON SOCIETY BETTER PERSONAL SAFETY • Increased supply resilience • Mandatory ESG disclosures • Higher health, safety, well-being • Faster access to critical supplies • Carbon emission reductions standards everywhere • Improved suppl
Slide 6: The ATIC Industry Will Grow Faster Post COVID-19
THE ATIC INDUSTRY WILL GROW FASTER POST COVID-19 GLOBAL ATIC MARKET GROWTH OPPORTUNITY 01 $50BN CUSTOMER RETENTION Currently 02 outsourced CUSTOMER PENETRATION 03 $200bn ATIC CROSS- SELLING Currently in-house 04 NEW CUSTOMER WINS Untapped 05 potential CUSTOMER OUTSOURCING 6
Slide 7: Attractive Opportunity to Scale Up in Assurance
ATTRACTIVE OPPORTUNITY TO SCALE UP IN ASSURANCE Assurance Financial highlights • Part of the wider SAI Global Group owned by • Transaction consideration: A$855m Baring Private Equity Asia • Funded by newly arranged certain funds facilities • Audit and Standards businesses part of the acquisition • 2
Slide 8: Scaling Up with a High-Quality Asset
SCALING UP WITH A HIGH-QUALITY ASSET… Audit c. 65%1 of revenue Inform c. 30%1 of revenue • Provider of audit, inspection, and certification services for Management Systems, 3rd party accredited schemes, 2nd party • Offers access to over 1.5m audits and Product Certification technical Standards aggre
Slide 9: Bringing Complementary Geographies and Services
…BRINGING COMPLEMENTARY GEOGRAPHIES AND SERVICES Global footprint very complementary Additional services • Expand Agriculture & Food Industry Supply Chain assurance capabilities • Complements focus on Milton Keynes, UK St Petersburg, Russia providing wider ATIC services Toronto, Canada Warsaw, Polan
Slide 10: A Value Accretive Transaction with Excellent Strategic Fit
A VALUE ACCRETIVE TRANSACTION WITH EXCELLENT STRATEGIC FIT Given the increased corporate focus on risk, assurance services are key to mitigate systemic risk and address end-market concerns Corporate concerns Assurance solution (examples) Safer supply Supply chain audit Low carbon society Car
Slide 11: Intertek: Total Quality. Assured.
intertek Total Quality. Assured.