Intertek Group plc Annual Report & Accounts 2023

Visit: intertek.com/investors

01 Let's make the world amazingtogether
06 Chief Executive Ocer's letter
11 Our strategy
16 Our business model
17 Who we are
18 What we do
20 Where we operate
22 How we do it
24 How we create value
26 Key performance indicators
30 Financial review
36 Operating review
36 Consumer Products
40 Corporate Assurance
43 Health and Safety
46 Industry and Infrastructure
49 World of Energy
52 Principal risks and uncertainties
58 TCFD statement
67 Non-ﬁnancial and sustainability information statement

Book one: Strategic Report

Let's make the world amazing together and deliver sustainable growth and value for all

We are pleased to share our Annual Report & Accounts in a unique, three-book format:

Book one: Strategic Report
Where we discuss our growth opportunities and strategic performance.
Book two: Sustainability Report
Where we discuss our environmental, social and governance progress.
Book three: Financial Report
Where we record our ﬁnancial activities, performance and position.

These separate, but connected books, with their interconnected themes and narratives, allow us to present what weachieved in 2023 in a systemic, end-to-end framework. They have beendesigned to make it easier for our stakeholders to fully understand our business, how we bring quality, safety and sustainability to life, what we oerour clients and society, and the opportunities ahead of us.

Intertek Group plc Annual Report & Accounts 2023 | 01

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Let's make the world amazing together

As a purpose-led organisation, we are energised about makingthe world a better placethroughthe partnerships we have built over the years withall our stakeholders: our people, customers, communities and shareholders. We are purpose-led and have a strong track record of value creation for all stakeholders. We believe that working in partnership and understanding the needs of each stakeholder is what it takes to create sustainable growth and value for all. We are proud of the progress we have made over the years and equally there isso much more we can do to make the world a much better place. We are truly energised about the future growth opportunities to give our clients an Amazing ATIC Advantage, bringing quality, safety and sustainability to life inall parts of the global economy. Our people look forward to capitalising on thestrong partnerships we have with ourcustomers, suppliers, shareholders and communities to do so. Let’s make the world amazing together.

Intertek Group plc Annual Report & Accounts 2023 | 02

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Let's make the world amazing together Continued

To ﬁnd out more about how we create a supportive and inclusive culture for all of our colleagues
Read pages 10-17 in Book two

We believe in the power of diversity, equity and inclusion. Our success is based on a well-established culture oftrust among colleagues who bring passion and energy together with their highly skilled technical expertise to exceed the expectations of their customers. We deeply value the rights of our people across all our operations and throughout our business relationships. We want everyone to feel safe and engaged, with access to limitless personal growth opportunities.

Creating amazing opportunities for our 44,000 people to thrive, always striving to oer the best customer service to our clients

Colleagues

"To know that what we're doing is making a real dierence — that'spretty empowering."
— Vinu Abraham, Building & Construction, US

87 (2022: 80) ATIC Engagement Index score

Intertek Group plc Annual Report & Accounts 2023 | 03

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Let's make the world amazing together Continued

We provide our customers with our industry leading ATIC solutions to ensure their products meet rigorous quality, safety, regulatory, brand and sustainability standards. With our expertise, they are able to power ahead safely, to navigate complex regulatory landscapes, gain access to new global markets, and demonstrate systemic and end-to-end assurance on all aspects of their sustainability operations. Our clients are increasing their focus on Risk-based Quality Assurance to operate with higherstandards on quality, safety and sustainability in each part of their value chain, triggering a higher demand for ourATIC solutions, which are powered byourScience-based Customer Excellence ATIC Advantage.

To ﬁnd out more about the amazing work we are doing for our customers
Read the operating review on pages 36–51

Supporting 400,000+ clients with innovative solutions that enable them to operate with higher standards on quality, safety and sustainability in each part of their value chain

Customers

Intertek Group plc Annual Report & Accounts 2023 | 04

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Let's make the world amazing together Continued

Intertek people are always working toenrich the communities in which weoperate by actively engaging in relevantinitiatives such as community programmes, volunteer activities, partnerships with charities and social development projects. Through these eorts and making use of our Science- based expertise, we are able to address speciﬁc local social and environmental needs, contributing to community wellbeing and supporting sustainable practices that will help build an ever better world.

Supporting and enhancing our communities and the environment across our global network of state-of-the-art operations in morethan 100 countries

Communities

Solar-powered street lights for ruralGurugram, India
In partnership with local charity Deep Welfare Organisation, we installed solar-powered street lights in ﬁve villages in Gurugram, beneﬁtting around 36,000 people.

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Let's make the world amazing together Continued

As a purpose-led business focused on growth, Intertek delivers sustainable long-term value for our stakeholders. Weoperate a dierentiated, high-quality growth business with excellent fundamentals and intrinsic defensive characteristics, giving our customers the Intertek Science-based ATIC Advantage tostrengthen their businesses.

Financial Data Tables

Item	2023-12-31	2022-12-31	2021-12-31
Issued capital
Share premium
Reserve of exchange differences on translation
Miscellaneous other reserves
Retained earnings
Equity attributable to owners of Parent
Noncontrolling interests

Item	2023-01-01 to 2023-12-31	2022-01-01 to 2022-12-31	2021-01-01 to 2021-12-31
Adjusted Results Member
Separately Disclosed Items Member

Item	2023-12-31	2022-12-31
iso4217:GBP
iso4217:GBPxbrli:shares

Book one: Strategic Report

Chief Executive Officer's letter

Our approach to value creation is based on the compounding effect, year after year, of margin accretive revenue growth, strong cash generation and disciplined investments in high-growth and high-margin sectors. With our high-quality compounder earnings model, we are focused on delivering sustainable growth and value, harnessing the attractive structural growth drivers present across our global markets and unlocking the significant value growth opportunity ahead. Operating a high-quality earnings model with a proven track record of sustainable value creation over the long term.

Shareholders
9% CAGR 2015-2023 total shareholder return

To find out more about how we create long-term value for our shareholders, read our financial highlights on page 8.

In doing so, we have continued to provide our many hundred thousand clients the comprehensive ATIC solutions they need, making us their most trusted and valued partner in meeting their Risk-based TQA needs. With our constant focus on improving our reach, our insight and our capabilities, we continued to deepen existing relationships and attract new ones. We launched our AAA differentiated growth strategy in 2023, taking an evolutionary approach, building on our strengths to accelerate growth for all, benefitting from the increased investments of our clients in Total Quality Assurance. We will capitalize on our proven high-quality earnings model to unlock the significant value growth opportunity ahead, while reinventing and improving ourselves in those areas where we can make an even greater difference than we are achieving today. At Intertek, our purpose-led approach is making the world ever better, delivering sustainable growth and value for every stakeholder as an amazing force for good – from our people to our clients, our communities and our shareholders – all the time. The Science-based Customer Excellence of our talented colleagues around the world gives us a unique competitive advantage, enabling our clients everywhere to power ahead safely and sustainably. During the year we invested further in our industry-leading ATIC (Assurance, Testing, Inspection and Certification) customer value proposition that we pioneered in 2016, creating the concept of Risk-based Total Quality Assurance ('TQA') that redefined our industry. It’s an approach that was ahead of its time then and that has underpinned our success in bringing quality, safety and sustainability to life, making us mission critical to our clients and society.

Intertek Virtuous Economics

GDP+ organic revenue growth in real terms
Margin-accretive revenue growth
Strong free cash flow
Investments in high-growth and high-margin sectors
Disciplined capital allocation

Chief Executive Officer's letter Continued

As we move through 2024, our good to great journey continues as we consistently add to our core areas of excellence and expertise. During 2023, we made progress embedding recent acquisitions, making new ones, and launching new innovations and centres of excellence throughout the business. We are well positioned to help the world operate with ever-higher quality, safety and sustainability standards. We are working harder than ever before to ensure that everybody, everywhere has the opportunity to benefit from the quality excellence that our TQA solutions deliver, enabling clients to resolve the complex operating challenges they face.

Results in 2023

I would like to recognise all my colleagues for their unwavering support enabling us to deliver a strong 2023 performance in revenue growth, margin, EPS, cash and ROIC. Our revenue grew by 7.1% at constant currency driven by a LFL revenue growth of 6.2%, the highest in the last 10 years, and the contribution of our acquisitions. Our systemic performance management drove strong profit conversion with margins rising 60bps at constant currency, driving EPS growth of 11.0% at constant currency. Cash conversion at 122% was excellent. We have delivered our highest ever cash from operations of £749m resulting in our net debt declining by £127m to £611m. We have a strong balance sheet giving us the ability to invest in growth. ROIC increased by 250bps to 20.5%. Our clients are increasing their focus on Risk-based Quality Assurance to operate with higher standards on quality, safety and sustainability in each part of their value chain, triggering a higher demand for our ATIC solutions which are powered by our Science-based Customer Excellence ATIC Advantage.

Over the last nine years, from 2014-2023, we have delivered a CAGR of 5.3%, 6.1% and 6.0% for revenue, operating profit and EPS, notwithstanding the impact of Covid. In May 2023, we unveiled our Intertek AAA differentiated growth strategy to capitalise on the best-in-class operating platform we have built and target the areas where we have opportunities to get better. Our highly engaged, customer-centric organisation is laser-focused to take Intertek to greater heights putting our AAA strategy in action and continuing to deliver sustainable growth and value for all stakeholders. Based on our positive momentum, we expect the Group will deliver a robust performance in 2024 with mid-single digit LFL revenue growth at constant currency, margin progression and a strong cash flow performance. We are on track to get back to our peak margin of 17.5% and beyond in the medium-term, capitalising on the revenue growth acceleration we are seeing for our ATIC solutions, our disciplined performance management and our investments in high growth and high margin segments. We believe in the value of accretive disciplined capital allocation. In recognition of our highly cash generative earnings model, our strong financial position, the Board’s confidence in the attractive long-term growth prospects for the Group and its ability to fund continued growth investments, we are increasing our targeted dividend payout ratio to circa 65% of earnings from 2024.

High-quality earnings model

Our proven, cash-generative earnings model is at the core of what makes us successful. It is based on the delivery of our unique TQA value proposition. The profitable delivery of ATIC services to customers operating in the structurally attractive Consumer Products, Corporate Assurance, Health and Safety, Industry and Infrastructure, and World of Energy sectors is dependent on our capital-light business model, and entrepreneurial and Customer 1st culture, which also enables us to respond quickly to new growth opportunities. To maximise returns, we continue to invest in high-growth, high-margin areas and maintain a disciplined approach to capital allocation.

Financial highlights

Metric	2023 Value	2022 Value
Revenue	£3,329m	£3,193m
Like-for-like revenue¹	£3,301m	£3,193m
Adjusted free cash flow¹,²	£378m	£386m
Adjusted operating profit¹,²	£551m	£520m
Statutory operating profit	£486m	£452m
Return on Invested Capital¹	20.5%	18.0%
Dividend per share³	111.7p	105.8p
Adjusted diluted EPS¹,²	223.0p	211.1p
Adjusted operating margin¹,²	16.6%	16.3%
Statutory operating margin	14.6%	14.2%
Statutory diluted EPS	183.4p	178.4p

Strategic highlights

Revenue of £3,328.7m, +7.1% at constant currency and +4.3% at actual rates
Highest LFL revenue growth in the last 10 years with 6.2% LFL revenue growth at constant currency
LFL of 8.2% in Corporate Assurance, Health and Safety, Industry and Infrastructure, and World of Energy combined; Consumer Products LFL of 1.3%
JLA, SAI and CEA acquisitions performing well, and Controle Analítico and PlayerLync integrations on track
Adjusted operating profit of £551.1m, +10.9% at constant currency and +6.0% at actual rates
Adjusted operating margin of 16.6%, +60bps at constant currency and +30bps at actual rates
Adjusted diluted EPS of 223.0p, +11.0% at constant currency and +5.6% at actual rates
Daily cash discipline delivers an all-time high operating cash flow of £749.0m with cash conversion of 122%
Strong balance sheet; net debt reduced by £127m to £611m, and leverage ratio improved to 0.8x
ROIC of 20.5%, +250bps year-on-year at constant currency and at actual rates
Cost reduction programme delivered savings of £13m in 2023 and £10m expected in 2024
Proven high quality compounding model; On track to deliver our medium-term margin target of 17.5%+
Robust 2024 outlook: Mid-single digit LFL at constant currency, margin progression and strong cash flow
Full Year dividend of 111.7p up 5.6% year-on-year; increasing targeted dividend payout to circa 65% from 2024
Definitions of the alternative performance measures, metrics and constant rates can be found in Book three, page 64.
Adjusted operating profit, adjusted operating profit margin, adjusted diluted earnings per share (‘EPS’) and adjusted free cash flow are non-GAAP measures. Adjusted measures are stated before Separately Disclosed Items, which are described in note 3 to the financial statements in Book three, page 11. Reconciliations between statutory and adjusted measures, as well as return on invested capital and cash conversion, are shown in the Financial Review.
Chief Executive Officer's Letter

Dividend per share for 2023 is based on the interim dividend paid of 37.7p (2022: 34.2p) plus the proposed final dividend of 74.0p (2022: 71.6p).

As a purpose-led organisation, we are energised about making the world a better place through the partnerships we have built over the years with all our stakeholders.
The Science-based Customer Excellence of our talented colleagues gives us a unique competitive advantage, enabling organisations to power ahead safely and sustainably.
Our clients are increasing their focus on Risk-based Quality Assurance to operate with higher standards across their value chain, triggering a higher demand for our ATIC solutions.
We launched our AAA differentiated growth strategy to accelerate growth for all, benefiting from the increased investments of our clients in Total Quality Assurance.
We will capitalise on our proven high-quality earnings model to unlock the significant value growth opportunity ahead, while improving ourselves in those areas where we can make an even greater difference.
We are well positioned to continue to deliver sustainable growth and value for all our stakeholders.
Levels of Hazard Observations increased, reflecting greater levels of activity across our sites as well as greater awareness and reporting of health & safety overall.
Since 2015, we have used the Net Promoter Score (‘NPS’) process to listen to our customers, enabling us to improve our customer service over the years consistently.
We are driving environmental performance across our operations through science-based reduction targets to 2030. Our rigorous monthly performance management of climate-related action plans delivered operational market-based emissions reductions of 10.8% against 2022 and 36.7% against our base year 2019.
In 2023, our greenhouse gas ('GHG') emissions reduction targets were validated by the Science Based Targets initiative ('SBTi').
We recognise the importance of employee engagement in driving sustainable performance for all stakeholders, and we measure employee engagement against our Intertek ATIC Engagement Index. Our 2023 score was 87 (2022: 80).
Our voluntary permanent employee turnover improved to a low rate of 12.3% (2022: 14.0%).

Intertek Group plc Annual Report & Accounts 2023

Book Three: Financial Report
Book Two: Sustainability Report
Book One: Strategic Report

Chief Executive Officer's Letter Continued

Delivering best-in-class digital experience on intertek.com

In Action
At the end of 2023, we proudly launched our redesigned website intertek.com, a higher energy and more immersive platform for a best-in-class customer experience. Built on cutting-edge technology, the website is more user-friendly, with easier and faster navigation, and hosts a range of rich content, giving visitors increased insight into the Science-based Expertise behind our unique, industry-leading ATIC solutions. The new design has been tailored to a range of different audiences, meaning that customers, investors, analysts, employees and even casual visitors can all come away with a greater appreciation of how Intertek is helping to bring quality, safety and sustainability to life, every day. To stay up-to-date with our latest news and developments, visitors can sign up for online alerts.

Visit: intertek.com

Building a safer and more sustainable world by harnessing the increased demand for our ATIC solutions

In a post-Covid world, corporations are investing more in quality, safety and sustainability, accelerating the demand for our ATIC industry-leading solutions. We operate in an industry with compelling structural growth drivers. As the global population grows, regulation becomes more complex and consumers focus more than ever before on safety, performance and quality. As a result, the need for end-to-end traceability continues to become more urgent and the transition to renewable energy increasingly important and rapid.

Based on our customer research, these attractive structural growth drivers are being augmented by the following set of emerging trends.

Higher investments in safer supply

Covid-19 has proved to be a catalyst for many corporations to improve the resilience of their supply chains. We are seeing a significant change of focus from our clients when it comes to managing their value chains, as they recognise the need for better data throughout their supply chains, tighter risk management with razor-sharp business continuity planning, and a more diversified portfolio strategy. All this means they are more prepared to invest in their processes, technology, training and independent assurance.

Higher investments in innovation

Our clients have also realised that they need to invest more in product and service innovation. That’s the only way they can meet the changing needs of their customers. In a 2023 survey by Capgemini, 67% of Research & Development leaders expect to increase their investments in R&D. For us, these investments in innovation add up to a higher number of Stock Keeping Units, or SKUs, and tests per SKU. SKUs are vital tools for retailers and wholesalers, allowing them to identify products and monitor stock levels across systems and channels.

A step change in sustainability

Sustainability is the movement of our time, and the demand for clear and transparent sustainability-related information is growing with every government regulation. Consumers are looking for companies they can trust, and ones that align with their own values. Meanwhile investors are seeking more transparency, and stakeholder expectations are rising. With our industry-leading Total Sustainability Assurance solutions, we provide a unique end-to-end solution that includes our wide variety of sustainability services and independent certifications to meaningfully demonstrate commitment to sustainability.

Higher growth in the world of energy

The growth opportunities in the world of energy are truly exciting, as the demand for energy grows and the transition to greener energy accelerates. Having seen the recent concerns over energy security and given the under-investments in traditional oil and gas exploration and production in the last decade, along with the lack of scale for renewables, investments for production in both sectors are set to increase. This is a significant opportunity for Intertek, and we're working to lead the way with our science-based fuels innovation and sustainability solutions.

Increase in new clients

There is also significant growth in the number of companies globally, largely due to the lower barriers to entry in many sectors for any brand with e-commerce capabilities. So many of these young companies have one key thing in common – a lack of Quality Assurance expertise. This makes them perfect clients for our Global Market Access solutions and, as a decentralised customer-focused organisation, we have an amazing track record of winning new clients and maintaining long-term client relationships.

Chief Executive Officer's Letter Continued

Intertek ‘AAA’ differentiated growth strategy

We have made strong progress between 2014 and 2023 delivering sustainable growth and value for our stakeholders, and we are very excited about the significant growth value opportunity ahead, capitalising on our Science-based Customer Excellence TQA advantage. At our Capital Markets Event last year, we unveiled our Intertek AAA differentiated growth strategy to capitalise on the best-in-class 5x5 operating platform we have built in recent years and to target the areas where we have opportunities to get better.

Our Intertek AAA differentiated growth strategy is about continuing our good-to-great journey and unlocking the significant value growth opportunity ahead by being the best and creating significant value for every stakeholder every day. We want to be the most trusted TQA partner for our customers, the employer of choice with our employees, to demonstrate Sustainability Excellence everywhere in our community and deliver sustainable growth and value for our shareholders.

To seize the significant growth value opportunity ahead we will be laser-focused on three strategic priorities and three strategic enablers. Our strategic priorities are defined as Science-based Customer Excellence TQA, Brand Push & Pull, and Winning Innovations, and our three strategic enablers are based on 10X Purpose-based Engagement, Sustainability Excellence and Margin Accretive Investments. We will both further improve where we are already strong and address the areas where we can get better.

At the Capital Markets Event we set out how our passionate, innovative and customer-centric organisation is energised to take Intertek to greater heights delivering AAA performance for all stakeholders. We are focused on delivering value consistently, targeting mid-single digit LFL revenue growth, margin accretion to return to our 17.5% peak margin and beyond, strong cash generation and a more agile organisation while pursuing disciplined investments in attractive growth and margin sectors.# Intertek Group plc Annual Report & Accounts 2023

Book one: Strategic Report

Chief Executive Officer's letter

See our business model on pages 16-25.

Our high-quality portfolio is poised for faster growth:
* The depth and breadth of our ATIC solutions positions us well to seize the increased corporate needs for Risk-based Quality Assurance.
* All of our global business lines have plans in place to seize the exciting growth drivers in each of our divisions.
* At the local level, our country-business mix is strong, with the majority of our revenues exposed to fast-growth segments.
* Geographically, we have the right exposure to the structural growth opportunities across our global markets.

Visit: intertek.com/investors/capital-markets-event-presentations/

Customers
Be the most trusted TQA partner

Sustainability Excellence everywhere
Employer of choice every day
Sustainable growth and value
Community
Shareholders
Employees

Continued

AAA means giving our clients an 'Amazing ATIC Advantage' to make their businesses stronger. It’s about being the absolute industry champion by providing clients with the best ATIC solutions. We want to be the most trusted TQA partner for our customers, the employer of choice for our employees, to demonstrate Sustainability Excellence everywhere in our community and deliver significant growth and value for our shareholders.

Our strategic priorities
Our AAA differentiated growth strategy

Our strategic enablers

We will reach our goals by implementing our AAA differentiated growth strategy to unlock the significant value growth opportunity ahead. To achieve this ambition, we will focus on three goals:
* 10X purpose-led engagement in every team
* Higher revenue with existing customers
* Step up the acquisition of new clients

Science-based TQA
Customer Excellence
We invest in the skills we need to deliver operational excellence and superior customer service

Brand Push & Pull
We are leveraging the strength of our brand to become a B2B2C brand, a real first in our industry
Winning Innovations
Our innovative solutions help clients resolve their quality, safety and sustainability challenges

10X Purpose-based Engagement
Working with Gallup, we’re giving our teams the data they need to unleash their full potential

Sustainability Excellence
Our integrated control and compliance approach ensures we deliver on all aspects of sustainability
Margin Accretive Investments
Our investments help us leverage our scale and ensure our portfolio is poised for faster growth

Introducing our Amazing ATIC Advantage good to great strategy
Being the best for every stakeholder all the time

Our goals

Intertek Group plc Annual Report & Accounts 2023
12
Book three: Financial Report
Book two: Sustainability Report
Book one: Strategic Report

Chief Executive Officer's letter

Continued

Leading the industry through innovation and M&A
True to our pioneering spirit, we at Intertek continue to constantly reinvent ourselves, delivering winning ATIC solutions which allow our clients to resolve the complex Quality Assurance challenges they face. That’s why we launched Global Market Access ('GMA'), a one-stop digital knowledge platform which helps retailers of soft goods, hard goods and personal protective equipment better understand and comply with regulations across the world, facilitating significant improvements in consumer safety. Likewise, the launch in Türkiye of our pioneering new platform iCare has made it possible for fashion manufacturers to access real-time information about the status and progress of their submitted samples in just a few clicks, meaning they can effortlessly manage all their testing projects through one centralised platform, accessible 24/7. We also set up several new centres of expertise, including our state-of-the-art Battery Xcellence Centre in Mestre, near Venice in Italy, and our Electrification Centre of Excellence in Plymouth, Detroit, allowing us to meet rising demand from two of the world’s fastest growing sectors for Intertek’s Science-based TQA solutions. Another highlight from 2023 was the introduction of advanced PhotonAssay technology into our Minerals laboratory in Tarkwa, Ghana – a revolutionary new technique that delivers faster results and uses fewer hazardous chemicals than other testing procedures, minimising our impact on the environment. Finally, we have also seized a number of attractive growth opportunities, strengthening our portfolio in high-growth, high-margin areas through recent acquisitions like SAI Global Assurance, JLA Brasil Laboratório de Análises de Alimentos S.A., Clean Energy Associates LLC and Controle Analítico Análises Técnicas Ltda that have allowed us to further expand our share of the global Quality Assurance market and have been successfully integrated and are performing well and in line with our expectations. The acquisition of PlayerLync Holdings Inc., a leading provider of training and learning content to frontline workforces at some of the world’s leading brands, leaves us exceptionally well-placed to take advantage of fast-growing market demand for software-based, technology- enabled People Assurance services. These developments reflect the commitment we share at Intertek to drive continuous innovation which powers new growth opportunities and helps to make our world a safer, more sustainable, and amazing place. We will continue to look at M&A opportunities in attractive high-margin and high-growth areas to broaden our ATIC portfolio of solutions with new services we can offer to our clients and to expand our regional coverage.

Read more about our innovations in the Operating review on pages 36-51.

Intertek Group plc Annual Report & Accounts 2023
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Book three: Financial Report
Book two: Sustainability Report
Book one: Strategic Report

Chief Executive Officer's letter

Continued

Sustainability at the heart of everything we do
Nowhere is the growth acceleration we are seeing stronger than in the area of sustainability. This is the movement of our time and is central to everything we do at Intertek – anchored in our Purpose, our Vision, our Values, and now in our AAA differentiated growth strategy as well. Sustainability is important to all stakeholders in society who are consistently demanding faster progress and greater transparency in sustainability reporting. Companies everywhere therefore continuously need to upgrade and reinvent how they manage their sustainability agenda, particularly with regard to how they disclose their performance. This is why, under our global Total Sustainability Assurance ('TSA') programme, we provide our clients with proven independent, systemic and end-to-end assurance on all aspects of their sustainability strategies, activities and operations.

The TSA programme comprises three elements:
* Intertek Operational Sustainability Solutions
* Intertek ESG Assurance
* Intertek Corporate Sustainability Certification

Visit: intertek.com/sustainability/

Our TSA approach uses the deep scientific, engineering and auditing expertise of our sustainability teams to meet our clients' needs; with industry-agnostic, industry-specific or tailored solutions; with holistic solutions covering everything from consulting and gap assessment, to training, to regulatory reporting and corporate certification; and with actual, real-world improvements in sustainability in their operations and value chains. At Intertek, we live by the same values that our wide range of sustainability services enable our clients to embrace. We have also committed to ambitious science-based targets to reduce our own operational emissions and attain net zero carbon emissions across our entire footprint by 2050. I am particularly pleased that during the year we received validation from the Science-Based Targets initiative ('SBTi') for our targets relating to reducing greenhouse gas ('GHG') emissions. I am delighted that in validating these targets, the SBTi has found that we are in line with the ambition to restrict global temperature increases to 1.5°C above pre-industrial levels by 2050. I am also happy to report that our rigorous monthly performance management of climate-related action plans delivered operational market-based emissions reductions of 10.8% against 2022 and 36.7% against our base year 2019. Among other key developments during the year, we received AAA accreditation from the MSCI ESG ratings and were included for the seventh consecutive year in the FTSE4Good index. These and many other initiatives, challenges and achievements relating to the environment are described in depth in our Sustainability Report. We continued to deliver progress on our health & safety performance, with a low Total Recordable Incident Rate. We also recorded an employee-engagement score of 87 against our Intertek ATIC Engagement Index, compared with 80 in 2022. And our voluntary permanent employee turnover during the year stood at the low rate of 12.3% compared to 14.0% in 2022.

Read more about Sustainability Excellence in Book two.

Total Sustainability Assurance
TSA is a global programme that leverages our footprint in over 100 countries and covers all industries. We have built a team of sustainability experts in every major region, who can help with both a global and local perspective. Read more about how we help our clients meet their sustainability goals in the Sustainability Report, Book two, pages 18-25.

Intertek Operational Sustainability Solutions enable companies to understand, achieve and validate their existing and emerging sustainability goals for their products, assets, facilities, systems, processes and the environment. Providing independent verification of sustainability disclosures and reporting, Intertek ESG Assurance enables companies to identify areas of risk and impact, define their sustainability strategies and prepare ESG reports.# Intertek Group plc Annual Report & Accounts 2023

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Chief Executive Officer's letter

Continued You’ll be amazed

As an industry pioneer, on our good to great journey, we have been focused across all of our business lines on making Intertek the global icon for Total Quality Assurance. It is to bring awareness of the sheer scope of our amazing people’s expertise that we have launched the ‘You’ll be amazed where you find Intertek’ campaign, the industry’s first ever brand campaign that reaches out directly to consumers, highlighting the mission-critical role that Intertek plays in areas from pioneering cancer research to ensuring the safety of wind turbines and helping to assure that the fuel inside Air Force One is fit for flight before take-off.

By targeting a consumer audience for the first time, the campaign aims to create awareness outside a purely business-to-business environment. This campaign celebrates that Intertek has a positive impact on all aspects of modern life, by shining a light on the incredible work of our colleagues through social media content and stories. By helping to make our brand a household name for quality, safety and sustainability around the world, it will place us more front-of-mind for new decision makers as we become the B2B2C brand icon for Total Quality Assurance.

Connect with our 'You'll be amazed' campaign
intertek.com/amazed
linkedin.com/company/intertek

Intertek Group plc Annual Report & Accounts 2023
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Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Chief Executive Officer's letter

Continued Our amazing people

I would like to highlight the contribution of our truly amazing people, who once again have delivered a strong performance for our company, our clients, our shareholders and society as a whole. Across the organisation, our people are truly engaged about the opportunity we have to deliver on our Purpose of bringing quality, safety and sustainability to life. This genuine commitment and customer-centric passion is at the heart of our culture, and our determination to be the agents of positive change around the world is evident in everything we do.

We have a highly disciplined approach to performance management, which underpins our operational excellence and continuous improvement approach in everything we do. Our commitment to excellence involves the constant measurement of our progress against a range of operational metrics, using data intelligence to meticulously gauge and understand our customer service levels and turnaround times. This approach, along with our unwavering focus on quality at every site, is crucial to our ability to deliver constant improvement, with our commitment to operational and health & safety excellence to ensure that our customers always receive a superior service.

Our ability to do this comes down to the incredible energy of our 44,000 people across the world, and I thank each and every one of them for their unwavering support, applying their Science-based Customer Excellence that powers our AAA differentiated growth strategy.

Looking ahead: let’s make the world amazing together

The world has made tremendous progress in the last 50 years to operate with higher quality, safety and sustainability standards. As I look ahead to 2024 and beyond, I am confident that we will continue to benefit from the acceleration in growth for our ATIC solutions as our clients increase their investments in safer supply chains, innovation and sustainability. What we do is mission critical for the world’s supply chains to operate safely 24/7. We are purpose-led and passionate about bringing quality, safety and sustainability to life, leveraging our differentiated, high-energy, people-centric culture to focus on maintaining our strong track record of delivering sustainable value for all stakeholders. This makes us a force for good, committed to helping the world become amazing now and into the future.

We have been a pioneer for more than 130 years, providing Total Quality Assurance to give our customers the peace of mind they need to operate safely and make their businesses stronger with our ATIC solutions. Our ATIC services are provided to all industries, touching almost every aspect of life from the ordinary to the incredible, with a global network of state-of-the-art operations in more than 100 countries. I am truly proud to be working alongside them all to make the world amazing.

Read more about our culture and people in the Sustainability Report, Book two pages 10-17.

During the year, we also announced the establishment of a new Group Executive Committee to take advantage of the exciting growth opportunities ahead, in a world where companies are increasing their focus on Risk- based Quality Assurance to make their businesses stronger. Read more about our Group Executive Committee on page 53 in the Directors' Report in Sustainability Report, Book two.

Our goal is to have fully engaged employees working in a safe environment. As we work with our clients to make the world amazing together, we are energised by the future growth opportunities we can unlock by bringing our clients the benefits of our Science-based Customer Excellence Advantage. That’s how we’ll continue to bring quality, safety and sustainability to life in all parts of the global economy, building on the uniquely strong partnerships we have in place – not only with our customers, but also with our people, suppliers, shareholders and communities.

Let’s make the world amazing together!

André Lacroix
Chief Executive Officer

Intertek Group plc Annual Report & Accounts 2023
16

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Our business model

How we apply

Intertek’s unrivalled Total Quality Assurance is delivered consistently with precision, pace and passion. Science-based Customer Excellence is what makes us different.

Who we are

We are passionate about our Purpose and committed to being ever better. Our people are guided by science, and sustainability is central to everything we do.

What we do

We report revenue, operating profit and margin in five divisions: Consumer Products, Corporate Assurance, Health and Safety, Industry and Infrastructure, and World of Energy.

Where we operate

The industry-leading solutions we provide are delivered with an unwavering commitment to our customers and by investing in our global network.

How we create value

We are a force for good in the world, and our solutions create meaningful and sustainable long-term value for a broad range of stakeholders.

to create sustainable value our passionate culture, science-based expertise, and resources

Page 17
Page 18
Page 20
Page 22
Page 24

Intertek Group plc Annual Report & Accounts 2023
17

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Our business model

Continued

Who we are

We are passionate about our Purpose and 'Doing Business the Right Way'. We strive to make the world a better, safer and more sustainable place for all, now and for future generations.

As the world changes, supply chains are rapidly growing in size and complexity, bringing unprecedented levels of risk. As a result, it can become more difficult for businesses to operate safely and sustainably while delivering quality products and services. In these challenging times, companies need a trusted partner, which is why we provide our clients with a unique risk-based approach to Quality Assurance. We call this Total Quality Assurance and only Intertek offers it.

Ever better

As a company we are committed to becoming ever better in everything we do. That means more than simply seeking ways to constantly improve our operations for enhanced efficiency and effectiveness. It means investing in our Science-based Customer Excellence approach to provide superior services, enabling our 400,000+ clients to become ever better too.

Our people, culture and values

We value diversity and our core strength is, and always will be, our people. We are guided by science, and it’s the way our colleagues combine passion and innovation with customer commitment that sets us apart. Our decentralised operating culture is built around strong values. These values are inspirational and help us to drive sustainable growth for all. They guide our behaviours every single day, underpinning the way we work, guiding decision making and connecting colleagues across the world. Sustainability is central to everything we do and we demonstrate our commitment and passion to help our clients make a difference, as well as bettering ourselves every day.

Read more about Sustainability Excellence in Book two

Our Values

We are a global family that values diversity.
We always do the right thing, with precision, pace and passion.
We trust each other and have fun winning together.
We own and shape our future.
We create sustainable growth. For all.

Our Purpose

Bringing quality, safety and sustainability to life.

Our Vision

To be the world’s most trusted partner for Quality Assurance.

Intertek Group plc Annual Report & Accounts 2023
18

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Our business model

Continued
At Intertek, we bring our clients the benefits of our unique risk-based assurance solution: Total Quality Assurance. For more than 130 years, we’ve been a pioneer, innovating to mitigate risk and bring quality and safety to organisations.# From our beginnings, certifying grain cargoes and then testing and ensuring the safety of Thomas Edison's products, we have become a global force for good: today, we are an industry leader committed to bringing quality, safety and sustainability to life with precision, pace and passion. Our work covers everything from testing toys to inspecting power stations, from supporting excellence in electric mobility to promoting circularity in tourism, from certifying vaccines to providing end- to-end Quality Assurance across every aspect of an organisation’s operations and supply chain. Our innovation-led, end-to-end value proposition supports our clients 24/7, providing a unique and fully integrated portfolio of Assurance, Testing, Inspection and Certiﬁcation ('ATIC') services in a way that delivers complete peace of mind across all products, services and operating systems.

What we do

But the ATIC solutions we oer gs we offer go beyond the quality and safety of a corporation’s physical components, products and assets. They go to the heart of the reliability of their operating processes and quality management. We call this Total Quality Assurance because it enables our clients to mitigate risk at every stage of their operations. In short, we help our clients operate in safety and make their businesses stronger, making the world amazing – a better, safer and more sustainable place for everybody.

End-to-end ATIC services

Enabling our customers to identify and mitigate intrinsic risk in their operations, their supply and distribution chains and quality management systems.

Assurance

Assurance goes beyond testing, inspection and certiﬁcation to look at the underlying elements that make a company and its products successful. Intertek’s assurance solutions provide total peace of mind to our clients that their operating procedures, systems and people are functioning properly to provide competitive advantage. Our extensive auditing, performance benchmarking and supply chain services provide insight into every aspect of a company's operations, right across the value chain, enabling informed business decisions. Our training services ensure workforce competencies are current and relevant. Our experts around the globe bring their knowledge to clients on assessing overall performance, the quality and productivity of laboratories, identifying and mitigating risks, streamlining manufacturing processes and supply chains, and so much more.

Inspection

Validating the speciﬁcations, value and safety of our customers’ raw materials, products and assets. Independent third-party inspections help our clients around thewore world protect their ﬁnancial, branding and legal interests throughout the entire supply chain. We oe. We offer inspection services to manufacturers, retailers, traders, plant operators, governments and other buyers and sellers of materials and products. Inspections help minimise the risk of defective products by ensuring they meet customer standards as well as industry and government regulations. This serves to protect business interests, manage risk and ensure quality products are manufactured and delivered to their ﬁnal destination at the correct speciﬁcations. Our experienced inspectors help identify products and shipments which may contain non-standard or non-compliant components and materials. We also support the end-to-end life management of facilities such as power plants and oil reﬁneries.

Certiﬁcation

Formally conﬁrming that our customers’ products and services meet all trusted external and internal standards. Intertek maintains extensive global accreditations, and we are recognised for our testing and certiﬁcation services. With both international and local proﬁciency, Intertek brings the qualiﬁcations customers need to get products in front of the right eyes. We os. We offer certiﬁcation programmes that achieve market entry into a variety of global destinations, programmes for a more eco-friendly environment, and programmes to verify social accountability compliance for companies and their suppliers. We help clients showcase and maintain products’ safety and performance. Our leadership and expertise in regulatory standards and certiﬁcations keep clients ahead of changes and challenges, and our knowledge of the process from sourcing to market position creates eates efficient, cost-eect-effective solutions that meet best industry practices.

Testing

Evaluating how our customers’ products and services meet and exceed quality, safety, sustainability and performance standards. Intertek’s testing services support the quality, performance, regulatory compliance, safety, benchmarking, evaluation, validation, analysis, and other requirements for products, components, raw materials, sites, and facilities. Our ﬁeld and in-house laboratory testing services provide the dataoua our clients need to optimise the production process and get products to market quickly and economically. Our experts and global resources are equipped to meet testing, timelines and product needs. As regulations change and technology is created or innovated, our knowledge and industry expertise ensure products and businesses are prepared to meet evolving demands.


Assurance (21% Group revenue)	Visit: intertek.com/assurance/
Inspection (25% Group revenue)	Visit: intertek.com/inspection/
Certiﬁcation (8% Group revenue)	Visit: intertek.com/certiﬁcation/
Testing (46% Group revenue)	Visit: intertek.com/testing/

Intertek Group plc Annual Report & Accounts 2023

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Our business model Continued

Most trusted partner forQuality Assurance

Our leading ATIC solutions are mission critical for the world to operate safely. To become the most trusted partner for Quality Assurance, our Science- based TQA Experts always work to deliver end-to-end quality, safety and sustainability solutions that exceed customer expectations. This clearly sets us apart, meaning our clients can rely on us to always deliver rapid and accurate insight feedback.

Customer promise

Total Quality Assurance expertise delivered consistently with precision, pace and passion, enabling our customers to power ahead safely. We underpin this commitment with thousands of customer interviews every month, ensuring we understand their priorities and continuously invest in the mission-critical innovation they need.

Intertek’s innovation-led, end-to-end value proposition helps organisations to mitigate risk at every stage and operate safely, eectively and with complete peace of mind in a complex world.

Research & development

Consumer management

Distribution & retail channels

Component suppliers

Transportation

Manufacturing

Raw materials sourcing

Our TQA value proposition

Intertek Group plc Annual Report & Accounts 2023

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Our business model Continued

Consumer Products


£935.8m	26.4 %	£477.5m	28 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin
£246.8m	14 %	£109.4m	22.9 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin

Global Business Units

Softlines
Hardlines
Electrical & Connected World

Corporate Assurance


£477.5m	28 %	£246.8m	14 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin
£109.4m	22.9 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin

Global Business Units

Business Assurance
Assuris
Structural growth drivers
- Sustainability
- Supply chain resilience
- Enterprise cyber-security
- People Assurance
- Regulatory Assurance

Structural growth drivers

Growth in brands, SKUs & e-commerce
Regulation
Sustainability
Technology
Growing middle classes

Five divisions, one focus – to drive amazing growth in high-margin sectors

To reﬂect the value creation drivers identiﬁed in the Intertek AAA dierentiated growth strategy, we have enhanced our segmental disclosures and are reporting our revenue, operating proﬁt and margin inﬁve divisions.

Where we operate

Intertek Group plc Annual Report & Accounts 2023

Book three: Financial Report

Book two: Sustainability Report

Book one: Strategic Report

Our business model Continued

World of Energy


£728.6m	22 %	£65.6m	9.0 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin

Global Business Units

Caleb Brett
Transportation Technologies
Clean Energy Associates

Structural growth drivers

Renewable energy
Energy consumption
Population growth/social mobility
EV/Hybrid
Greener fuels

Industry and Infrastructure


£860.5m	26 %	£86.1m	10.0 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin

Global Business Units

Industry Services
Minerals
Building & Construction

Structural growth drivers

Energy consumption
Energy transition
Population growth
Infrastructure investment
Greener buildings

Health and Safety


£326.3m	10 %	£43.2m	13.2 %
Revenue	Percentage of Group revenue	Adjusted operating proﬁt	Adjusted operating margin

Book one: Strategic Report

Our business model

Global Business Units

AgriWorld
Food
Chemicals & Pharma

Structural growth drivers

Healthier foods
Growing populations
Sustainable food sourcing
Regulations
New molecules

Continued

As the world becomes more complex and interconnected, our customers face increased risks to quality, safety and sustainability. As the global leader in Risk-based Quality Assurance, we are uniquely positioned to help customers gain an advantage by mitigating risk. We enable them to grow by building trusted relationships, listening to their needs, developing insights and using our data-science to create amazing, innovative Total Quality Assurance solutions that make the world better, safer and more sustainable. But it’s not just what we do that makes us unique. The way in which we do it and how we engage with our customers

1,000+ Laboratories and offices
44,000 Employees
100+ Countries
100+ Languages
3,000 Auditors
150,000+ Audits

How we do it

Our global network also have a powerful positive impact. Our expertise is guided by science and delivered with an unwavering commitment to give our clients an Amazing ATIC Advantage. The interviews we carry out every month through our Net Promoter Score programme, measure the percentage of customers likely to recommend our services. This is an invaluable tool in helping us get to know our customers, understand their evolving needs and ensure we deliver an incredible service at every Intertek site. Every one of our 44,000 employees in our global network, based in more than 100 countries, works hard to understand the challenges our customers face. Then, by working in close partnership with one another, we can collectively focus on making the world amazing, together.

Continued

Our Science-based TQA experts provide clients with innovative ATIC solutions in our industry-focused Centres of Excellence.

Our Centres of Excellence

Electriﬁcation Centre of Excellence in Plymouth, US: Supporting the transition towards electric mobility

What it is: Strategically located near Detroit in the epicentre of the automotive industry, our Electriﬁcation Centre of Excellence in Plymouth, Michigan, oers some of the most extensive testing capabilities in North America for electric vehicle batteries and supply equipment. Through science- based Total Quality Assurance solutions, this facility plays acrucial role in supporting manufacturers in the transition to greener transport.

Customer beneﬁt: With sales of electric vehicles growing rapidly, our Electriﬁcation Centre of Excellence helps meet the automotive industry’s increasing need forregulatory support and safety and validation testing. As electriﬁcation technologies continue to advance, the facility will support the safety, performance and functionality of electric vehicles, battery packs, charging systems and their related components.

Visit: intertek.com/automotive/detroit

Minerals Global Centre of Excellence in Perth, Western Australia

A technology and innovation centre with afocus on automation and sustainability to provide our Minerals clients with faster, safer, higher quality, and more ecient analytical solutions. Located in Perth Australia, a key hub for the minerals and mining industry, this state-of-the-art lab gives our customers access to trusted expertise across the minerals supply chain.

Maison Centre of Excellence in Florence, Italy

Based in Lastra a Signa, the heart of Italy's garment manufacturing district, Intertek's Maison Centre of Excellence isour innovative experiential space and adjacent world-class lab where science meets luxury. Bringing together – virtually or face to face – our industry experts, forward-thinking luxury and fashion brands, industry leaders, academics and ahost of textile industry participants to collaborate and take bold new ideas and turn them into reality.

Electric Vehicle ('EV') Centre of Excellence in Milton Keynes, UK

Our EV Centre of Excellence testing facility in the UK supports manufacturers to develop next- generation electric propulsion systems, fromhigh- speed motor testing to full vehicle validation capabilities. Our global network of automotive testing facilities can support manufacturers and suppliers with a wide portfolio of bespoke solutions and capabilities, such as engine andhybrid testing, EV ﬂuids, and fuel, additive and lubricant testing.

Battery Xcellence Centre

What it is: Our new 'Battery Xcellence Centre' in Mestre, Italy, features the latest technologies for testing battery and energy storage systems, along with unrivalled industry expertise. With equipment including battery cyclers, climatic and salt-spray chambers, anti-ﬁre containers and an altitude test chamber, the centre meets the testing needs for transportation and storage safety, functional safety, and performance for a wide range of cells and battery packs. This state-of- the-art facility in Italy joins our global network of specialist centres strategically located in key markets including the USA, China, Taiwan, India, Hong Kong and Europe.

Customer beneﬁt: On the road to net zero, energy storage is increasingly critical, and this new facility helps customers in Italy and the South Europe region navigate the rapidly evolving regulatory environment for batteries and battery-operated products. Our Italian team will support businesses across a range of sectors – including automotive, transportation, energy and consumer goods – in taking their products from design to compliance evaluation and global market access.

Visit: intertek.com/batteries

Supporting sustainableenergy solutionsworldwide

Continued

Our Purpose is to bring quality, safety and sustainability to life. Here,we explain how we do this for our Stakeholders.

Section 172 statement

In its discussions and decisions during the year, the Board of Directors has acted in the way that it considers, in good faith, would be most likely to promote the success of the Group for the beneﬁt of its members as a whole (having regard to stakeholders and the matters set out in sub-sections 172(1) (a)–(f) of the 2006 Companies Act). Details of how the Board has engaged with stakeholders and how it has had regard to their interests is set out in Book two. Section 172 is set out on pages 56–61 in Book two

How we create value

Customers

We support 400,000+ clients with innovative solutions that enable them to operate with higher standards on quality, safety and sustainability in each part of their value chain.

Why they are important to us
Our customers are at the centre of everything we do, and delivering the highest standards of customer service is a crucial aspect of becoming the world’s most trusted TQA partner.

How we engage
We continuously engage and build our relationships with customers, and closely analyse our NPS data.

How they have beneﬁtted in 2023
* Communication, partnership and 24/7 support
* Refreshed intertek.com to provide best-in-class digital customer experience
* Fast development of innovative Risk-based Quality Assurance solutions
* Training and webinars from all business lines, covering allindustries
* Digital customer portals for improved eciency, productivityand visibility
* Digital directories providing our clients' customers with access to product and supply chain information

People

We create amazing opportunities for our 44,000 people to thrive, always striving to oer the best customer service to our clients.

Why they are important to us
Our people are our most valuable asset and are critical to our success. Customer-centric and passionate about what they do, they deliver sustainable value through unmatched expertise and quality of work for our customers every day.

How we engage
We create a high-performance, growth-oriented, inclusive and caring culture with clear, transparent communication and regular recognition, in which each colleague has a personal growth plan.

How they have beneﬁtted in 2023
* Launch of Champions engagement programme
* Consistent performance management approach, talent development and growth planning
* '10X Leadership' development events and '10X Coaching' for executives
* Training sessions on diversity, equity and inclusion through our MOSIAC programme
* Enriched extensive learning and development material through Lucie, our global Learning Management System
* Engaging employee communication channels

Investors

We operate a high-quality earnings model with a proven track record of sustainable value creation over the long-term.

Why they are important to us
Delivering for our investors drives our ongoing success, enabling us to deliver for all stakeholders today and tomorrow.

How we engage
We engage with existing and potential investors and sell-side analysts through regular trading updates, investor conferences and roadshows throughout the year.

Communities

We support and enhance our communities andthe environment across our global network ofstate- of-the-art operations in more than 100countries.

Governments and regulators

Governments and regulators expect compliance with all global, regional and local regulation, responsible business practices and collaboration on the transition to net zero.# Intertek Group plc Annual Report & Accounts 2023

Book one: Strategic Report

Key performance indicators

The Group uses a variety of key performance indicators (‘KPIs’) to monitor performance and measure the financial impact of the Group’s strategy. Where applicable, KPIs are based on adjusted measures in order to provide a meaningful and consistent year-on-year comparison. An explanation and reconciliation of statutory to adjusted performance measures is given on page 33. A glossary of performance measures is provided in Book three, page 64.

Financial

Key performance indicators

Key performance indicators	2022 Adjusted constant rates	2023 Adjusted constant rates	2022 Adjusted actual rates	2023 Adjusted actual rates	2022 Statutory actual rates	2023 Statutory actual rates
Revenue 1 (£m)	3,193	3,301	3,193	3,329	3,193	3,329
Revenue growth	6.2%	3.4%	7.1%	4.3%
Operating proﬁt 1,2 (£m)	520	551	452	486	452	486
Operating margin 1,2 (%)	10.9%	7.5%	6.0%	5.6%
Diluted earnings per share 2 (pence)	211.1	223.0	178.4	183.4	178.4	183.4
Dividend per share 3 (pence)	105.8	111.7
Cash ﬂow from operations 2 (£m)	722	749	704	726	704	726
Adjusted free cash ﬂow 2 (£m)	386.3	378.4
Return on invested capital at constant rates 1,4 (%)	16.3	16.6	14.2	14.6

Continued

Revenue 1 (£m)
Revenue growth measures how well the Group is expanding its business and includes currency impacts.

Operating proﬁt 1,2 (£m)
Measures proﬁtability of the Group and includes currency impacts.

Diluted earnings per share 2 (pence)
A key measure of value creation for the Board and for shareholders.

Like-for-like revenue (£m)
Revenue growth, including acquisitions following their 12-month anniversary of ownership and excluding the historical contribution of any business disposals/closures excluding acquisitions and disposals.

Operating margin 1,2 (%)
Measures proﬁtability as a proportion of revenue.

Dividend per share 3 (pence)
Measures returns provided to shareholders.

Cash ﬂow from operations 2 (£m)
Shows the ability of the Group to turn proﬁt into cash.

Return on invested capital at constant rates 1,4 (%)
Measures how eectively the Group generates proﬁt from its invested capital.

Adjusted free cash ﬂow 2 (£m)
Measures the cash available to shareholders.

Non-ﬁnancial

Health & safety

	2020	2021	2022	2023
Total Recordable Incident Rate ('TRIR')	0.7	0.6	0.4	0.3

Total Recordable Incident Rate ('TRIR')
Recordable incidents include medical treatment incidents, lost time incidents and fatalities per 200,000 hours worked.

Why we measure it
A reduction in incidents is an important measure of the eectiveness of our safety culture. It also lowers rates of absenteeism and costs associated with work-related injuries and illnesses.

Target TRIR of less than 0.5 per 200,000 hours worked.

Customer satisfaction

	2020	2021	2022	2023
Average NPS interviews per month	89	80	80	87

Average NPS interviews per month
The average number of Net Promoter Score ('NPS') interviews carried out each month.

Why we measure it
Customers are our priority. Since 2015, we have used the NPS process to listen to our customers. These insights give us a deep understanding of what our customers need and want, fuelling our innovations.

Target
We will continue to aim to conduct at least 6,000 NPS interviews per month.

Operational emissions

	2020	2021	2022	2023
Operational emissions (in tCO2e)

Operational emissions (in tCO2e)
With the adoption of our new near-term absolute emissions reduction targets, we now measure our environmental performance against this. Operational emissions comprise our scope 1, scope 2 and scope 3 (business travel and employee commuting).

Why we measure it
We measure our carbon emissions to reduce our impact on the environment and increase operational eciency. We track both location- based and marked-based scope 2 emissions.

Target
2030: Reduce absolute scope 1, scope 2 and scope 3 (business travel and employee commuting) by 50% vs 2019 base line.

Voluntary permanent employee turnover and employee engagement

	2020	2021	2022	2023
Employee voluntary turnover (% of permanent employees)	9%	13%	14%	12.3%
Intertek ATIC Engagement index score	89	80	80	87

Voluntary permanent employee turnover and employee engagement
Voluntary permanent leavers are employees who choose to leave the Group themselves. This does not include employees on a ﬁxed-term contract.
Intertek ATIC Engagement Index – based on the key drivers of sustainable value creation and which measures engagement on a monthly basis in every operation with the following metrics: Net Promoter Score, Customer Retention, Quality, Voluntary Permanent Employee Turnover and Total Recordable Incident Rate.

Why we measure it
Ensuring employees are engaged is essential to talent retention and we measure and monitor this closely at a global and local level through our voluntary turnover rate.

Target
We aim to keep our voluntary permanent turnover rate below 15% and increase our Intertek ATIC Engagement Index to 90.

Gender balance

	2020	2021	2022	2023
Women in senior management (%)

Gender balance
Percentage of women in senior management roles (Group Executive Committee and their direct reports).

Why we measure it
We promote diversity in all its forms, including gender, age, sexual orientation and disability, as well as having an ethnic and social make-up that reﬂects broader society. Achieving better gender balance is a driver of progress.

Target
2025: We aim to increase the proportion of women in senior leadership roles to 30%.

Compliance training

	2020	2021	2022	2023
Training completion by eligible employees 1 (%)

Compliance training
Completion of annual compliance training by eligible employees (online or face to face, when available) during the training window.

Why we measure it
Our commitment to the highest standards of integrity and professional ethics is embedded in the Group’s culture through the integrity principles set out in our Code of Ethics. Every year, to support continuing understanding in this area, our people are required to complete our comprehensive training course.

Target
We aim to achieve 100% completion of our annual compliance training by eligible employees.

1. Eligible employees include those with access to the LUCIE training platform and those receiving compliance training face to face. New joiners complete training throughout the year as part of their induction.

We measure our success by tracking both non-ﬁnancial and ﬁnancial key performance indicators that reﬂect our strategic priorities. We continue to review the sustainability areas that are most material and relevant to our stakeholders and have set ourselves targets in those areas that are aligned to our corporate strategy.

Key performance indicators

Strong 2023 performance in revenue, margin, EPS, cash and ROIC
Disciplined performance management focused on margin accretive revenue growth with strong cash conversion and capital allocation to drive strong returns on invested capital

Adjusted

Key performance indicators	2022 Adjusted	2023 Adjusted
Revenue (£m)	3,193	3,329
Revenue growth	7.1%	4.3%
Operating proﬁt (£m)	520	551
Operating margin (%)	10.9%	7.5%
Diluted earnings per share (pence)	211.1	223.0
Dividend per share (pence)	105.8	111.7
Cash ﬂow from operations (£m)	722	749
Adjusted free cash ﬂow (£m)	386.3	378.4
Return on invested capital at constant rates (%)	16.3	16.6