Online Annual Report 2015

Key facts 2015

£2,166m +3.5% from 2014Revenue

41,400Employees

100+Countries

£343mAdjusted Profit1

1,000Labs and Offices

Chairman's statement

“Never has there been so much focus on quality assurance from consumers, regulators, media, companies and investors.”
Sir David Reid
Chairman

Chief Executive Officer's Review

“Intertek is a growth company on a 'good to great' journey.”
André Lacroix
Chief Executive Officer

Annual Results video

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1. Adjusted operating profit is stated before Separately Disclosed Items, which are described in note 3 to the Financial Statements.
assurance

Assurance

Assurance ensures our customers identify and mitigate the intrinsic risk in their operations, supply chain and quality management systems.

testing

Testing

Testing is evaluating how products and services meet and exceed quality, safety, sustainability and performance standards.

inspection

Inspection

Inspection is validating the specifications, value and safety of raw materials, products and assets.

certification

Certification

Certification is certifying that products and services meet trusted standards.

Our Purpose

Bringing Quality and Safety
to Life.

Our Vision

To Become the World’s Most Trusted Partner for Quality Assurance.

Our Values

We want to leverage our passionate culture to deliver a superior customer service with engaged employees, excellence, diversity, innovation, agility, teamwork and collaboration.

The Quality Assurance Market

Market size

$250bn

We estimate that the wider market opportunity for our Assurance, Testing, Inspection and Certification ('ATIC') solutions is $250bn with significant growth opportunities.

It is currently dominated by in-house testing, while the external market is extremely fragmented.

We see four key attractive growth opportunities in the Quality Assurance Market

The structural growth drivers in both Assurance, and Testing, Inspection and Certification ('TIC') taking advantage of our customers' needs for Total Quality Assurance.

Growing our market share with existing customers and through providing additional services across more products or projects and a wider coverage of the supply chain.

Gaining new customers and convincing those businesses performing in-house testing that they should outsource.

Leveraging our highly cash-generative business model and strong balance sheet through selective acquisitions.

Products

Structural drivers include: quality solutions and sustainability demand, R&D, regulation, brand and supply chain expansion and risk management.

Business Lines

Softlines, Hardlines, Electrical & Wireless, Business Assurance, Building & Construction, Transportation Technologies, Chemicals & Pharmaceuticals, Product Assurance, Food and Health, Environmental & Regulatory Services

Group Revenue51%

Group Operating Profit68%

Outlook

Continuing growth from expanding investment in quality and innovation

Trade

Structural drivers include: global GDP growth, quality and quantity control requirements during transportation

Business Lines

Cargo & Analytical Assessment, Agriculture, Government & Trade Services

Group Revenue25%

Group Operating Profit22%

Outlook

Global and regional trade flow growth

Resources

Structural drivers include: capex & opex investment, increased resources activity and long-term demand for energy

Business Lines

Industry Services, Minerals

Group Revenue24%

Group Operating Profit10%

Outlook

Long-term growth

Our Total Quality Assurance Proposition

The Intertek Total Quality Solutions Proposition provides a systemic approach to supporting our customers’ Quality Assurance efforts in each of the areas of their operations including R&D, raw materials, sourcing, components suppliers, manufacturing, transportation, distribution and retail channels and consumer management.

To seize the exciting ATIC growth opportunities ahead and deliver our Total Quality Assurance Proposition, we have developed our 5x5 strategy based on 5 clear strategic priorities and 5 enablers.

Our 5 Strategic Priorities

  • Strong Brand Proposition
  • Superior Customer Service
  • Effective Sales Strategy
  • Growth- and Margin-Accretive Portfolio
  • Operational Excellence

5X5

Our 5 Enablers

  • Living Our Customer-Centric Culture
  • Disciplined Performance Management
  • Superior Technology
  • Energising Our People
  • Delivering Sustainable Results,
    Everywhere, Every Day