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2015 Half Year Results – Intertek

Intertek · Aug 3, 2015 · 36 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2015 Half Year Results – Intertek – slide 1
    2015 Half Year Results Presentation 3 AUGUST 2015 Andr Lacroix Edward Leigh Chief Executive Officer Chief Financial Officer www.intertek.com
  2. 2015 Half Year Results – Intertek – slide 2
    Agenda Performance 01 Highlights Andr Lacroix Chief Executive 02 Financial results Edward Leigh Finance Director 03 Business update Andr Lacroix Chief Executive 3 www.intertek.com
  3. 2015 Half Year Results – Intertek – slide 3
    Andr Lacroix Chief Executive Performance Highlights 2015 Half Year Results Presentation www.intertek.com
  4. 2015 Half Year Results – Intertek – slide 4
    Improved performance Total revenue up 3.5% at actual rates, up 1.4% at constant currency Organic revenue up 0.9% at constant currency, up 170bps sequentially Operating Profit1 up 7.9% at actual rates, up 3.4% at constant currency…
  5. 2015 Half Year Results – Intertek – slide 5
    Good growth in Products & Trade divisions Organic revenue growth1 Revenue growth1 1,090 12 (26) Group 1,080 +0.9% reported 3 1,070 10 1,055 5 1,060 11 m 1,055 1,050 Group ex Industry 1,046 +2.5% 1,040 1,060 contract exits…
  6. 2015 Half Year Results – Intertek – slide 6
    Improved momentum in Products and Trade divisions Organic revenue growth1 5% 4.1% 4% 2.8% 3% 2.5% 2.2% 2% 2.4% 1% 0.9% 0% -1% (0.5%) (0.8%) -2% H2 13 H1 14 H2 14 H1 15 Group Group Ex Industry Services 7 1. At…
  7. 2015 Half Year Results – Intertek – slide 7
    Well diversified portfolio H1 Revenue 20151 H1 Operating Profit 20151 15% 19% 29% 38% 18% 23% 26% 8% 6% 18% Consumer Goods Commerical & Electrical Chems & Pharma Commodities Industry & Assurance 8 1. Revenue &…
  8. 2015 Half Year Results – Intertek – slide 8
    Margin discipline Group margin Divisional margin +30bps1 increase in operating margin Variance to H115 H114 Consumer Goods 32.0% 0bps Cost discipline Commerical & Electrical 15.3% 0bps H1 organic cost flat Chems & Pharma 11.5%…
  9. 2015 Half Year Results – Intertek – slide 9
    Sustained growth in cash and dividend Free cash flow Cash conversion Dividend 100 100% 20 17.0 78.8 79% 16.0 80 80% 15.0 15 64% 13.0 m 60 60% 10.7 51% (pence) 47.1 48% 10 40% 40 40% 22.4 17.3 5 20 20% 9.4 0…
  10. 2015 Half Year Results – Intertek – slide 10
    Edward Leigh Chief Financial Officer Financial results 2015 Half Year Results Presentation www.intertek.com
  11. 2015 Half Year Results – Intertek – slide 11
    Key Financials YoY % Actual Constant Constant 2015 Rates Rates Organic2 Revenue 1,060m 3.5% 1.4% 0.9% - excluding low-value contract exits 2.5% Operating profit1 164m 7.9% 3.4% 3.0% Operating profit margin1 15.5% 60bps 30bps…
  12. 2015 Half Year Results – Intertek – slide 12
    % 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 13 H1 2014 14.9% Consumer Goods 0bps Commercial & Electrical 0bps Chems & Pharma 20bps Commodities Operating Margin bridge Industry & Assurance 80bps…
  13. 2015 Half Year Results – Intertek – slide 13
    H1 2015 performance Products Organic Change at Change at change at m H1 15 actual constant constant Consumer Goods Revenue 196.2 11.4% 5.7% 5.7% Operating Profit 62.8 12.9% 5.5% 5.5% Margin 32.0% 40bps 0bps 0bps Organic Change…
  14. 2015 Half Year Results – Intertek – slide 14
    H1 2015 performance Commodities and Industry & Assurance Organic Change at Change at change at m H1 15 actual constant constant Commodities Revenue 277.2 5.5% 4.4% 4.6% Operating Profit 36.8 37.3% 33.3% 32.3% Margin 13.3% 310bps…
  15. 2015 Half Year Results – Intertek – slide 15
    Currency analysis: Revenue Local currency to GBP H1 15 H1 14 USD 8.4% 1.53 1.67 25% CNY 7.0% 9.53 10.25 EUR 12.3% 1.37 1.22 HKD 8.3% 11.87 12.94 5% 60% AUD 6.6% 1.95 1.83 10% CAD 3.3% 1.89 1.83 BRE 17.4% 4.51 3.84 INR…
  16. 2015 Half Year Results – Intertek – slide 16
    Cash flow, tax and investment m actual exchange rates H1 2015 H1 2014 Cash Flow Adjusted operating profit(1) 164.4 152.3 Depreciation/amortisation +3% 41.6 37.3 Free cash flow up 67.3% Working capital (43.3) (46.6) Net capex 42.0m;…
  17. 2015 Half Year Results – Intertek – slide 17
    Financial guidance FY2015 guidance Interest charge 27-29m Effective tax rate 24.5-25.5% Minority interest 14-15m Diluted shares (as at 30 June 2015) 161.8m Capex 90-100m Net Debt 580-600m 18 Based on adjusted results, management…
  18. 2015 Half Year Results – Intertek – slide 18
    Andr Lacroix Chief Executive Business update 2015 Half Year Results Presentation www.intertek.com
  19. 2015 Half Year Results – Intertek – slide 19
    Initial impressions A growth company in a growth market, organically and by acquisition Essential quality assurance for customers Strong market positions and attractive portfolio A high-margin, strongly cash generative financial…
  20. 2015 Half Year Results – Intertek – slide 20
    Structural organic growth drivers Group Operating Profit1 Products 67% CG, C&E and C&P Food & Business Assurance Mid-long term 51% of Group revenue TIC organic revenue growth Trade 23% Cargo & Analytical Global Government…
  21. 2015 Half Year Results – Intertek – slide 21
    Structural organic growth drivers Group Operating Mid-Long term TIC Profit 1 Structural Growth Drivers organic revenue growth Quality solutions for end-products, their components, processes and R&D Continuing growth from Product…
  22. 2015 Half Year Results – Intertek – slide 22
    Resources: Insight from 2008-09 OIL PRICE TIS (OIL & GAS INFRASTRUCTURE) TIS Peak ORGANIC REVENUE Oil Price Peak 140 110 TIS Oil Price 100 TIS Organic Revenue indexed to 100 120 Trough Trough 90 100 Brent Oil Price…
  23. 2015 Half Year Results – Intertek – slide 23
    Group Outlook 2015 2015 Mid-long term FY organic revenue growth rate Continuing growth from expanding improved on prior year quality demands, regulation and innovation in Products Continuing good growth in products-related and…
  24. 2015 Half Year Results – Intertek – slide 24
    Consumer Goods Good growth with stable margin H1 Trading H2 Outlook & Strategic Highlights 5.7% Organic Revenue Growth Continued good growth expected in H2 32.0% Margin Continuous network investment, aligning to customers global supply…
  25. 2015 Half Year Results – Intertek – slide 25
    Commercial & Electrical Good growth with stable margin H1 Trading H2 Outlook & Strategic Highlights 5.4% Organic Revenue Growth Continuation of H1 growth trend 15.3% Margin Continued brand investment in quality, performance testing for…
  26. 2015 Half Year Results – Intertek – slide 26
    Chemicals & Pharma Margin accretive growth H1 Trading H2 Outlook & Strategic Highlights 3.2% Organic Revenue Growth Good growth expected in line with H1 11.5% Margin, up 280bps performance Leading positions in helping clients to develop…
  27. 2015 Half Year Results – Intertek – slide 27
    Commodities Margin accretive growth H1 Trading H2 Outlook & Strategic Highlights 4.6% Organic Revenue Growth Continuous good growth in H2 13.3% Margin, up 290bps Measuring the quality of commodities being explored, produced and traded.…
  28. 2015 Half Year Results – Intertek – slide 28
    Industry & Assurance Mixed performance H1 Trading H2 Outlook & Strategic Highlights Organic Revenue (8.2)% Continuing good growth in BA, Food and Agri; 8.2% Margin, (300)bps Oil & gas capex to remain challenging Margin self-help with…
  29. 2015 Half Year Results – Intertek – slide 29
    Performance management priorities Engaged and empowered organisation driven by a 01 common purpose Outstanding client relationships, based on operational 02 excellence and superior customer service Financial discipline to…
  30. 2015 Half Year Results – Intertek – slide 30
    Capital allocation priorities 01 Investing for organic growth: capex and working capital Sustainable returns to shareholders: Progressive 02 dividend policy with circa 40% pay-out ratio 03 M&A in growing sectors with good…
  31. 2015 Half Year Results – Intertek – slide 31
    Summary A growth company in a growth market, organically and by acquisition High margin, strongly cash generative financial model Highly skilled and passionate organisation, strong customer relationships, deep local…
  32. 2015 Half Year Results – Intertek – slide 32
    2015 Half Year Results Presentation 3 AUGUST 2015 Andr Lacroix Edward Leigh Chief Executive Officer Chief Financial Officer www.intertek.com
  33. 2015 Half Year Results – Intertek – slide 33
    Appendix 2015 Half Year Results Presentation www.intertek.com
  34. 2015 Half Year Results – Intertek – slide 34
    Separately disclosed items m actual exchange rates H1 2015 H1 2014 Adjusted operating profit(1) 164.4 152.3 Separately disclosed items: Amortisation of acquisition intangibles (10.5) (10.3) Acquisition and disposal costs (0.2)…
  35. 2015 Half Year Results – Intertek – slide 35
    Adjusted EPS m actual exchange rates H1 2015 H1 2014 Adjusted operating profit 164.4 152.3 7.9% Net interest expense (14.6) (11.4) Profit before tax 149.8 140.9 Tax 24.7% (24.5%) (37.0) (34.5) Profit after tax 112.8 106.4…
  36. 2015 Half Year Results – Intertek – slide 36
    Divisional Performance Summary H1 2015 Revenue Margin m constant Organic Organic exchange rates H1 15 Change change H1 15 Change change Consumer Goods 196.2 5.7% 5.7% 32.0% 0bps 0bps Commercial & Electrical 194.6 5.4% 5.4% 15.3%…

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