Intertek Group Plc · LSE:ITRK
Intertek — Investor Day (October 2006)
21 slides from Intertek's investor day presentation, Oct 11, 2006
Slide 1: Intertek Investor Day
Intertek Investor Day 11 October 2006
Slide 2: Intertek Investor Day Agenda
Intertek Investor Day Agenda 11 October 2006 LEATHERHEAD LABORATORY EMC Medical Devices SUNBURY LABORATORY The Business Model and historic financials Oil, Chemical & Agri Government Services Q&A session COFFEE BREAK Commercial & Electrical Consumer Goods Q&A session LUNCH BREAK Marks & Spencer DEMON
Slide 3: Wolfhart Hauser
Intertek Wolfhart Hauser
Slide 4: We support our customers in their global trade
We support our customers in their global trade INDUSTRIES Textiles Medical Oil Fiscal Support Toys Building Chemical Standards Hardlines Industrial/HVAC Agriculture Cargo Scanning Footwear IT/Telecom Minerals Food Automotive Home Appliances DIVISION Consumer Commercial Oil Government Goods Electrica
Slide 5: The factors that make up growth
The factors that make up growth 6% plus Inter- regional trade ~40% GLOBAL TRADE
Slide 6: Global trade 6%
Global trade 6% ~40% of global trade is emerging economies mainly in Asia “ Over the next decade 1 billion new consumers will buy non-essential goods.” The Economist, 16 Sep 2006
Slide 7: The factors that make up growth
The factors that make up growth Expansion of services, regions, industries Outsourcing Quality, safety, Gaining environmental market share Increasing variety 6% plus Inter- regional trade ~40% GLOBAL SECULAR DRIVING THE TRADE DRIVERS EXPANSION INDUSTRY
Slide 8: Driving the industry: outsourcing
Driving the industry: outsourcing CURRENT GLOBAL MARKET MANDATORY
Slide 9: Driving the industry: outsourcing
Driving the industry: outsourcing MARKET OPPORTUNITY 5X BIGGER CURRENT GLOBAL MARKET MANDATORY
Slide 10: The factors that make up growth
The factors that make up growth Expansion of Acquisitions services, regions, industries Outsourcing Quality, safety, Gaining environmental market share Increasing variety 6% plus Inter- regional trade ~40% GLOBAL SECULAR DRIVING THE EXTERNAL TRADE DRIVERS EXPANSION INDUSTRY GROWTH
Slide 11: Acquisition strategy
Acquisition strategy Strengthen position in regions where we are weak Additional service lines which can be expanded globally Moving into new industries using global network to expand
Slide 12: The factors that make up growth
The factors that make up growth Growth Expansion of Acquisitions services, regions, industries Outsourcing Quality, safety, Gaining environmental market share 10% Increasing variety 6% plus Inter- regional trade ~40% GLOBAL SECULAR DRIVING THE EXTERNAL TRADE DRIVERS EXPANSION INDUSTRY GROWTH Strateg
Slide 13: Summary
Summary We do more than test … we bring value to products and brands Group is well diversified Market potential is high
Slide 14: Intertek
Intertek Driving our service industry to a new level and delivering growth
Slide 15: Bill Spencer
Intertek Bill Spencer
Slide 16: Strong track record of growth
Strong track record of growth Group revenue Constant rates .2% £600m CAGR : 10 £400m £200m £0m 1999 2000 2001 2002 2003 2004 2005 Americas EMEA Asia Group operating profit* Constant rates £120m CAGR : 13.1% £80m £40m £0m 1999 2000 2001 2002 2003 2004 2005 * Before amortisation
Slide 17: Consistent revenues with little seasonality
Consistent revenues with little seasonality Revenue £m Actual 2006 327 2005 47% 272 580 2004 48% 238 500 2003 49% 230 471 2002 50% 230 462 Constant currency basis 2006 327 5802005 48% 284 593 2004 48% 246 517 2003 49% 219 451 2002 49% 206 424
Slide 18: Strong interim 2006 results
Strong interim 2006 results The three larger divisions which account for 91% of revenues grew by 21% % of HY Revenue Profit revenues growth growth Consumer Goods 23% 12.5% 11.1% Commercial & Electrical 27% 16.6% 12.4% Oil, Chemical & Agri 41% 28.7 % 45.2% Sub total 91% 20.6% 20.5% Government Service
Slide 19: High and consistent cash generation
High and consistent cash generation Operating cash flow* to operating profit (%) 95% 85% 75% Average: 84.7% 65% 2000 2001 2002 2003 2004 2005 * After capital expenditure Working capital to sales (%) Capital expenditure to sales (%) 9% 8% 8% 7% 6% 7% 5% 6% 4% Average: 7.1% Average: 5.6% 5% 3% 2000 20
Slide 20: Continuing growth and investment
Continuing growth and investment 30 Jun 31 Dec 30 Jun Balance sheet (£m) 2006 2005 2005 Property and lab equipment 123.1 115.9 93.1 Goodwill and intangible assets 68.7 68.5 36.8 Other assets & liabilities 30.5 15.2 25.1 222.3 199.6 155.0 Shareholder funds 70.7 51.9 27.1 Minority interests 8.6 7.8 6.
Slide 21: Intertek
Intertek Driving our service industry to a new level and delivering growth