1

Group Results 2002Analysts’ Presentation, London

10 March 2003

Richard Nelson, Chief Executive OfficerBill Spencer, Chief Financial Officer

2

Financial Highlights

£53.9mProfit before tax

5.2 penceProposed final dividend

27.1 penceEarnings per share*2

Up from 15.5% in 2001

Up 10% @ actual exchange ratesUp 15% @ constant exchange rates

Up 2% @ actual exchange ratesUp 6% @ constant exchange rates

16.7%Operating margin

£76.9mOperating Profit*1

£461.1mTurnover

*1 Operating profit is stated before goodwill amortisation and exceptional items (EBITA)*2 Basic EPS before exceptional items

3

Operating ProfitTranslation Exposure

• Up to 80% of operating profits are in US dollars or pegged/linked currencies

• 1% change in the average exchange rate = 0.8% change in operating profit

• Average exchange rate 2002 £1 = $1.50

4

Profitability

7.2 times3.4 timesInterest cover

─(15.5)Exceptional finance charges

65.553.9Profit before tax

(10.5)(22.2)Net interest payable

─15.6Exceptional items

76.076.0Operating profit

Pro-formaActual2002 - £m

5

Taxation

29.7%

(16.0)

53.9

Actual

29.9%Effective tax rate

(19.6)Tax

65.5Profit before tax

Pro-forma2002 - £m

6

Basic Earnings per Share

27.727.8Basic underlying EPS* in pence

27.2123.733.6(4.3)

(16.0)53.9

Actual

27.1Basic EPS in pence153.4Divided by shares in millions41.6Shareholders’ earnings(4.3)Less minorities

(19.6)Taxation65.5Profit before tax

Pro-formaYear 2002 - £m

* Excluding goodwill amortisation and exceptional items

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Dividends

4.2 timesActual dividend cover

3.5 timesPro forma dividend cover

7.8 pence5.2 penceDividend per share

Full Year Equivalent

December Final 2002

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Operating Cash Flow

5.9%6.9%Operating working capital to sales %

(6.8)(10.7)Change in operating working capital

5.7%5.1%Capital expenditure to sales %

76%78%Operating cash flow to operating profit%

52.960.2Operating cash flow(25.8)(23.6)Capital expenditure

85.594.5EBITDA

200120022002 - £m

Operating cash flow excludes exceptional cash inflow and is after capital expenditure

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Cash Generation

(8.7)13.6Exceptional cash flow

27.157.1Free cash flow*1

(3.5)(4.0)Dividends paid to minorities

(13.6)(12.7)Taxation

52.960.2Operating cash flow

20012002£m

*1 Before servicing of finance, acquisitions and investments

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Capital Structure

Pro forma 2002 interest cover = 7.2 times

630%

50.4

317.4

(23.7)

341.1

2001

237.5Borrowings

92%Net debt to shareholders equity

181.3Shareholders’ funds*

166.9Net debt

(70.6)Cash balance

2002£m

* Excludes goodwill written off to reserves of £264.7m (2001 £286.1m) when Intertek was acquired in 1996

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Trend in Turnover*

349 356390

434461

0

50

100

150

200

250

300

350

400

450

500

1998 1999 2000 2001 2002

At Constant Exchange Rates

CAGR = 7.2%

£m

* Continuing business

338 351

398

451 461

0

50

100

150

200

250

300

350

400

450

500

1998 1999 2000 2001 2002

At Actual Exchange Rates

CAGR = 8.1%

£m

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Trend in Operating Profit*

46.849.4

58.6

66.7

76.9

0

10

20

30

40

50

60

70

80

1998 1999 2000 2001 2002

At Constant Exchange Rates

CAGR = 13.2%

£m

45.048.9

61.0

69.876.9

0

10

20

30

40

50

60

70

80

1998 1999 2000 2001 2002

At Actual Exchange Rates

CAGR = 14.3%

£m

* Continuing business before goodwill amortisation and exceptional items

13

Richard NelsonChief Executive Officer

Operating Performance 2002

Analysts’ Presentation – 10 March 2003

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Testing, Inspection & Certificationof Products and Commodities

Growing Market• More products, shorter lifecycles• Increasing safety and quality standards• Migration of sourcing to Asia• Trend to outsourcing• Low cost, high value

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World Leader & High Barriers to Entry

• Laboratory network for local testing• Safety labels, accreditations, reputation• Local labour developed over many years• Customer focus (turnaround time,

responsiveness)• Strong compliance

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Operating Performance - Overview

15.4%16.7%Margin

15%66.776.9Operating profit

6%434.4461.1TurnoverGrowth %20012002

£m @ constant 2002 exchange rates

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Labtest(Consumer Goods)

£m @ constant 2002 exchange rates

31.0%33.5%Margin

22%33.941.5Operating profit

13%109.3123.8Turnover

Growth %20012002

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Labtest (Consumer Goods)

Drivers• Widening ranges of products• Increasing quality and safety requirements• Expansion in China with lower prices and costs• Strong growth in India and Turkey • USA improved textile and toy testing• In fill acquisitions (ISO 9000)

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Caleb Brett(Oil & Chemical)

£m @ constant 2002 exchange rates

9.8%9.4%Margin

(1)%16.516.3Operating profit

3%168.4172.8Turnover

Growth %20012002

20

Caleb Brett(Oil & Chemical)

Drivers• Cargo related (77%) of total sales

– Secure but mature market– 2002 Competitive

• Outsourcing (23%) of total sales– Growth in EBITA– Prospects increasing well– Higher margin– In fill acquisitions

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ETL SEMKO(Electrical)

£m @ constant 2002 exchange rates

12.4%13.4%Margin

13%12.414.0Operating Profit

5%99.9104.7Turnover

Growth %20012002

22

ETL SEMKO(Electrical)

Drivers• Growth in safety testing and HVAC • Telecoms downturn (8% of business, 10% in

‘01), cost base being monitored• Growth in Asia (19% of business, 17% in’01)• High profit margins in Asia (20% +)• In fill acquisitions (low market share)

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FTS(Foreign Trade Standards)

£m @ constant 2002 exchange rates

16.0%18.9%Margin

24%9.111.3Operating profit

5%56.859.8Turnover

Growth %20012002

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FTS(Foreign Trade Standards)

Drivers• High shipments to Nigeria, (about 1/3 of division)• Additional products in SASO programme (about

1/3 of division)• Eight other contracts• Kuwait scheduled start Q2, 2003• Potential New Contracts

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Summary

• Business going well, in line with expectations at the time of float

• Infill acquisitions being pursued– Caleb Brett outsourcing– ETL SEMKO expansion– Systems certification

• Organic growth prospects