Intertek : Annual Report and Accounts 2020 and Notice of 2021 Annual General Meeting

INTERTEK GROUP PLC

(the 'Company')

19 March 2021

ANNUAL REPORT AND ACCOUNTS 2020 AND NOTICE OF 2021 ANNUAL GENERAL MEETING

In accordance with Listing Rule 9.6.1R and Disclosure Guidance and Transparency Rule ('DTR') 4.1.3R, the Company announces that the following documents have been posted to shareholders and submitted to the UK Listing Authority via the National Storage Mechanism:

• • Intertek Group plc 2020 Annual Report and Accounts;

• • Notice of 2021 Annual General Meeting; and

• • Proxy Form for the 2021 Annual General Meeting.

The above mentioned documents (except for the Proxy Form) are available on our website atwww.intertek.com and will shortly be available for inspection athttps://data.fca.org.uk/#/nsm/nationalstoragemechanism. The 2020 Sustainability Report is also available on our website. The 2021 Annual General Meeting is due to be held on Wednesday, 26 May 2021 at 9.00 a.m. at Intertek Group plc, 33 Cavendish Square, London, W1G 0PS.

In compliance with DTR 6.3.5R, the information contained in the Appendix below is extracted from the 2020

Annual Report and Accounts and should be read in conjunction with the Company's 2020 Full Year Results

Announcement for the year ended 31 December 2020 issued on 2 March 2021. Both documents are available atwww.intertek.com and together constitute the material required by DTR 6.3.5R to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the 2020 Annual Report and Accounts in full. Page numbers and cross references in the extracted information refer to page numbers and cross references in the 2020 Annual Report and Accounts.

Appendix

1. PRINCIPAL RISKS AND UNCERTAINTIES

This section sets out a description of the principal risks and uncertainties that could have a material adverse effect on the Group's strategy, performance, results, financial condition and reputation.

Risk framework

The Board has overall responsibility for the establishment and oversight of the Group's risk management framework. This work is complemented by the Group Risk Committee, whose purpose is to manage, assess and promote the continuous improvement of the Group's risk management, controls and assurance systems.

This risk governance framework is described in more detail in the Directors' report on pages 80 to 81.

The Group Audit Director and the Group General Counsel, who report to the Chief Financial Officer and Chief Executive Officer respectively, have accountability for reporting the key risks that the Group faces, the controls and assurance processes in place and any mitigating actions or controls. Both roles report to the Audit Committee, attend its meetings and meet with individual members each year as required.

Risks are formally identified and recorded in a risk register which is owned by each of the Group's divisional, regional and functional risk committees. Risk registers are updated throughout the year by these risk committees and are used to plan the Group's internal audit and risk strategy.

In addition to the risk registers, all senior executives and their direct reports are required to complete an annual return to confirm that management controls have been effectively applied during the year. The return covers Sales, Operations, IT, Finance and People.

Principal risks

The Group is affected by a number of risk factors, some of which, including macroeconomic and industry-specific cyclical risks, are outside the Group's control. Some risks are particular to Intertek's operations. The principalrisks of which the Group is aware are detailed on the following pages, including a commentary on how the Group mitigates these risks. These risks and uncertainties do not appear in any particular order of potential materiality or probability of occurrence.

There may be other risks that are currently unknown or regarded as immaterial which could turn out to be material. Any of these risks could have the potential to impact the performance of the Group, its assets, liquidity, capital resources and its reputation.

Changes to principal risks

Our principal risks continue to evolve in response to our changing risk environment. For the past two years, we have included Brexit as a standalone principal risk based on the significant uncertainty around the future of the relationship between the UK and EU. Based on our assessment of the risks and impacts on our operations since the end of the Brexit transition period, we have removed Brexit as a principal risk this year. However, we continue to monitor the impact of the new trading, customs and border arrangements, including on our clients' and their supply chains - and have reflected this accordingly within our Industry & Competitive Landscape risk.

This year, based on our current assessment of its materiality, we have also included the risk of climate change within our Industry & Competitive Landscape risk. We continue to monitor the potential operational, strategic, regulatory and reputational impact of climate change and the environment.

Operational
Principal risk	Possible impact	Mitigation	2020 update
Reputation Reputation is key to the Group maintaining and growing its business. Reputation risk can occur in a number of ways: directly as the result of the actions of the Group or a Group company itself; indirectly due to the actions of an employee or employees; or through the actions of other parties, such as joint venture partners, suppliers, customers or other industry participants.	• Failure to meet financial performance expectations. • Exposure to material legal claims, associated costs and wasted management time. • Destruction of shareholder value. • Loss of existing or new business. • Loss of key staff.	• Quality Management Systems; adherence to these is regularly audited and reviewed by external parties, including accreditation bodies. • Risk Management Framework and associated controls and assurance processes, including contractual review and liability caps where appropriate. • Code of Ethics which is communicated to all staff, who undergo regular training. • Zero-tolerance approach with regard to any inappropriate behaviour by any individual employed by the Group, or acting on the Group's behalf. • Whistleblowing programme, monitored by the Audit Committee, where staff are encouraged to report, without risk, any fraudulent or other activity likely to adversely affect the reputation of the Group. • Relationship management and communication with external stakeholders.	This risk remains stable compared with 2019. The Group continues to invest in staff development, quality systems and standard processes to prevent operational failures.
Customer service A failure to focus on customer needs, to provide customer innovation or to deliver our services in accordance with our	• May lead to customer dissatisfaction and customer loss. • Gradual erosion of market share and reputation if competitors are perceived to have better, more responsive or	• Net Promoter Score ('NPS') customer satisfaction, customer sales trends and turnaround time tracking. • Global and Local Key Account Management ('GKAM'/'LKAM') initiatives in place. • Customer feedback meetings.	This risk remains stable compared with 2019.
customers' expectations and our customer promise.	more consistent service offerings.	• Customer claims/complaints reporting.
People retention The Group operates in specialised sectors and needs to attract and retain employees with relevant experience and knowledge in order to take advantage of all growth opportunities.	• Poor management succession. • Lack of continuity. • Failure to optimise growth. • Impact on quality, reputation and customer confidence. • Loss of talent to competitors and lost market share.	• HR strategy policies and systems. • Development and reward programme to retain and motivate employees. • Succession planning to ensure effective continuation of leadership and expertise.	This risk remains stable compared with 2019.
Health, safety and wellbeing Any health and safety incident arising from our activities. This could result in injury to Intertek's employees, subcontractors, customers and/or any other stakeholders affected. Wellbeing impacts on our people resulting from the COVID-19 pandemic and other similar events.	• Individual or multiple injuries to employees and others. • Litigation or legal/regulatory enforcement action (including prosecution) leading to reputational damage. • Loss of accreditation. • Erosion of customer confidence. • Wellbeing - individual or multiple instances of stress-related issues and/or illnesses, absenteeism, and related impacts on morale.	• Quality management and associated controls, including safety training, appropriate PPE (Personal Protective Equipment), Health & Safety policies (including due diligence on sub-contractors), meetings and communication. • Avoiding fatalities, accidents and hazardous situations is paramount. It is expected that Intertek employees will operate to the highest standards of health and safety at all times and there are controls in place to reduce incidents. • Business continuity planning. • Employee wellbeing programme.	The health and safety element of this risk remains stable compared with 2019. The risk related to wellbeing has increased as a result of COVID-19, which has affected both our people and their ways of working.
Industry and competitive landscape A failure to identify, manage and take advantage of emerging and future risks. Examples include the opportunities provided by new markets and customers, a failure to innovate in terms of service offering and delivery, the challenge of radically new and different business models; the failure to foresee the impact of, or adequately respond to and comply with, changing or new laws and regulations; a failure to anticipate and address the operational,	• Failure to maximise revenue opportunities. • Failure to take advantage of new opportunities. • Lack of ability to respond flexibly. • Erosion of market share. • Impact on share price. • Failure to respond to macroeconomic factors. • Sanctions and fines for non-compliance with new laws, etc.	• GKAM and LKAM initiatives in place. • Diversification of customer base. • Focus on new services and acquisitions. • Tracking new laws and regulations. • Regular strategic and business line reviews. • Development of ATIC-selling initiatives. • NPS customer research to understand customer satisfaction. • Using innovation to respond to the COVID-19 pandemic.	This risk remains stable compared with 2019. The Group continues to invest in innovation and to adapt our service delivery to meet our clients changing needs.
strategic, regulatory and reputational impact of climate change and environmental factors; and a failure to identify and take advantage of the impact of post-Brexit changes to our clients' operations and supply chains. Macroeconomic factors such as a global/market downturn and contraction/changing requirements in certain sectors.
Third-party relations A failure to optimally manage the way in which we work with third parties (including landlords, suppliers, sub-contractors or agents) from a financial, commercial, risk, governance, security or sustainability perspective. Poorly established and maintained relationships could increase the chances of poor quality work, ethical issues and a lack of control over the services Intertek is providing via third parties.	Poor quality work. • Ethical issues. • Lack of control over services being provided via third parties. • Failing to agree optional terms, including pricing with suppliers. • Contracting with suppliers whose sustainability, ethical, cyber or other standards cause a risk to Intertek, its reputation or its operations.	Third-party appointment and due diligence processes. • Standard third-party contracts. • Third-party lease reviews. • Vendor/supplier financial diligence. • Supplier Code of Conduct. • Annual reviews of quality and pricing. • Training on Code of Ethics for key third parties. • Supply chain risk review as part of compliance with Modern Slavery Act.	This risk remains stable compared with 2019.
IT systems and data security Systems integrity: major IT systems integrity issue, or data security breach, either due to internal or external factors such as deliberate interference or power shortages/cuts, etc. Systems functionality: a failure to define the right IT strategies, maintain existing IT systems or implement new IT systems with the required functionality and which are fit for purpose, in each case to	• Loss of revenue due to down time. • Potential loss of sensitive data with associated legal implications, including regulatory sanctions and potential fines. • Potential costs of IT systems' replacement and repair. • Loss of customer confidence. • Damage to reputation. • Loss of revenue/profitability if we fail to adopt an IT investment strategy which supports the Group's	• Information systems policy and governance structure. • Regular system maintenance. • Backup systems in place. • Disaster recovery plans that are constantly tested and improved to minimise the impact if a failure does occur. • Global Information Security policies in place (IT, Data Protection, CyberSecurity). • Adherence to IT finance systems controls (part of Core Mandatory Controls ('CMCs')). • Adherence to IT general controls. • Internal and external audit testing.	This risk remains stable compared with 2019.