Good morning everyone and thanks for joining us. Today, I plan to - PDF document

Good morning everyone and thanks for joining us. Today, I plan to speak for a little longer than usual. I will discuss how we have reacted to Covid-19, responding quickly to the needs of our employees and our customers. I will cover trading in the first four months of the year which has demonstrated the defensive characteristics of our earnings model. I will explain why we believe we are well positioned to navigate an unprecedented pandemic and benefit from attractive growth opportunities post-Covid 19. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 1

In a few short weeks, Covid-19 has had a big impact in our lives and in our communities. On behalf of everyone at Intertek, I salute healthcare and frontline workers around the world for their magnificent response. I lead a business that, at its core, is about bringing Quality, Safety and Sustainability to life. Our role at Intertek has never been more relevant in making the world a better, safer and more sustainable place. In short, Covid-19 has magnified the great importance of Intertek ’ s role in society. We have remained open 24/7 since Day 1 to make sure the supply chains of our clients operate safely. We are, of course, not immune to the impact of the Global Pandemic However, I am confident in our ability to navigate what will be a challenging 2020 for the world. Let me explain why … Intertek Group plc. 2020 May Trading Statement, 21 May 2020 2

We are a strong company with a track record of consistent value creation. Intertek is a global leader in the attractive Quality Assurance market: • We have a Global Network of well invested state-of-the-art operations in 100 + countries run by innovative subject matter experts - a significant pool of intellectual capital • We benefit from diversified revenue streams both geographically and across several end-markets verticals, where we operate at scale with market- leadership positions • We provide our clients with a real depth and breadth of ATIC Quality Assurance Solutions • We run a high- performance and passionate organisation, with engaged talents leading with an Ever-Better mindset • We operate a high-margin and strongly cash generative Earnings model with a disciplined capital allocation policy. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 3

We entered 2020 with a strong momentum and a track record of consistent value creation over the last 5 years. Indeed, between 2014 and 2019: • Our revenue has grown by 43% • Our operating margin has increased from 15.5% to 17.2% • Our adjusted EPS has grown by 60% • Our cash generation has more than doubled • Our ROIC has progressed from 16.3% to 22.8% • Our employee productivity has increased 21% Intertek Group plc. 2020 May Trading Statement, 21 May 2020 4

Intertek has long operated with a strong balance sheet based on a financial policy of keeping leverage within a range of 1.5-2 x net debt: EBITDA on IAS 17 basis. At the end of 2019, the Group had a net debt of £629m, equivalent to just 1.0 x net debt: EBITDA, down from 1.4x in the prior year, reflecting our continued strong cash generation. This debt has a long duration maturity profile, the Company having refinanced in January 2020 and extended its Revolving Credit Facility to US$850m with a syndicate of 8 banks for a 5-year term. On December 31 2019, the Company had undrawn committed borrowing facilities of c.£325m. In addition, we have confirmed that we are in a position to draw down on the Bank of England’s CCFF facility, should we need to do so. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 5

The Group operates a progressive dividend policy with a targeted payout ratio of circa 50%. Intertek ranks 2nd highest in the FTSE100 in-terms of dividend progression since the IPO in 2002. The 2019 dividend of 105.8p is up YoY by 6.8% and we will pay our final dividend of 71.6p or £115m on 11th June 2020. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 6

Our sustainable performance, inspired by our purpose of Bringing Quality, Safety and Sustainability to Life, demonstrates our core strengths: • Our Total Quality Assurance customer proposition • Our Powerful Portfolio • Our High-Quality compounder Earnings model • Our passionate customer centric organisation • Our disciplined performance management. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 7

Being agile and fast is paramount in today ’ s environment. Now, I would like to explain how fast we have adapted, enabling us to respond decisively to an unprecedented situation. Cast your minds back a few short weeks. When we all got back from Christmas, none of us could foresee what was going to happen in 2020. On the 16th and 17th of January, I was in China myself. In Guangzhou and Shanghai to be precise, meeting with our top clients to thank them for their business and present our innovative solutions for 2020. Covid-19 was already in the news at that time. But it wasn ’ t yet on the agenda of every company. That all changed just a week later... The city of Wuhan and the Hubei province went into lockdown on 23 January – just as the Chinese New Year celebrations were due to start. Back in London, on Sunday 26th January I called our China team to discuss the immediate actions and priorities. We set up a daily call to ensure efficient communication. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 8

We started preparing our health & safety approach for when our people will return to work. And we agreed that the senior team from China should not join our global conference early February. We were right to get organised. The very next day, the Chinese New Year holiday was deferred until the third of February. And then it was announced that the return to work would be on the 10th. So, from the 10th February, we had two main priorities. First, to make sure all the right processes were in place to protect the health and safety of our employees. To do this, we implemented a specific Covid-19 health and safety policy to protect all of our colleagues. And second, to ensure we could give our clients all the help they needed to resume their operations. As I ’ m sure you have noticed, ever since the 3rd February, we ’ ve been posting regular updates on these 2 areas on our websites to keep all our stakeholders informed. Then things took another step up … Intertek Group plc. 2020 May Trading Statement, 21 May 2020 9

On 22 February, my Italian MD told me about the risk of the pandemic in Italy. We immediately put in place the same health & safety policy we had in China. When I gave you an update on the 3rd of March, this is what I said: “ At Intertek, we are not immune to the impact of the Coronavirus and our 2020 performance will be affected by the temporary disruption to the supply chains of our clients in China and any impact it might have on global trade activities.” Since then – and particularly since the 9th March – the situation has evolved very rapidly. First, a pandemic was declared in Europe – and then worldwide. As a result, lockdown initiatives have created significant disruptions for just about every citizen and every company around the world. At Intertek, we ’ ve rapidly implemented globally the health & safety policy we developed for China. We ’ ve asked everybody who can work from home to do so. And we ’ ve followed our business continuity planning procedures to remain open for our clients given the mission-critical importance of our ATIC services to ensure that supply chains operate safely in every country. I ’ m very proud of the speed at which we ’ ve adapted. We have been very responsive to a fast-changing environment. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 10

To make sure we communicate fast and make the right decisions I host a call every day with all regional leaders. On these calls, we discuss five operational priorities: • Health and safety • Customer service and Revenue management • Margin management • Cash management • Internal communication Intertek Group plc. 2020 May Trading Statement, 21 May 2020 11

Every time, health and safety come first. Our Covid 19 health & safety policy covers the following areas globally: 1. The use of personal protection equipment, including face masks 2. Hygiene, control and prevention measures 3. Social distancing and restrictions on gatherings 4. The sanitisation of facilities 5. Guidance for visitors to our facilities 6. Guidance for our employees who work at client premises 7. Restrictions on international travel 8. Guidance on what to do if you feel unwell. 9. Working from home for non-billable employees 10. Health monitoring for employees who are unwell Intertek Group plc. 2020 May Trading Statement, 21 May 2020 12

Our second priority is Customer Service. We are a passionate and customer-centric organisation, providing our customers with the best possible service. What we do every day to make sure the supply chains of our clients operate safely in all countries is mission-critical. The Covid 19 lockdown measures have created huge operational challenges for all of our clients. Maintaining our operations open 24/7 is therefore vital for our customers. We ’ ve kept all our operations open - with the exception of China, Hong Kong and India for a few weeks. Since day 1, we have increased the frequency of communication with our clients to make sure we understand their needs quickly. Our clients are truly valuing Intertek’s commitment to providing uninterrupted customer service. Intertek Group plc. 2020 May Trading Statement, 21 May 2020 13