Morris Geissler and Calin Moldovean, Intertek9th Annual Chemical/Petrochemical Strategic Sourcing SummitAmsterdam, 5 March 2014

Your Innovation. Your Success

Sustainable. Your Market Connect

Mitigate Risk. Our Mission

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R&D Performance Performance

Issues/Returns/ Recalls

Certification -Compliance

(Tech, Env, Social)

Production Distribution

End user

Supply/Value Chain

Intertek – Strategic Support for the Supply/Value Chain

Training

Advisory

Certification

Auditing

InspectionOutsourcing

QualityAssurance

Testing

CSR

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Intertek - Our extensive global network

• FTSE 100 company in the Support

Services sector

• Market capitalisation over £5 billion

• Revenue generation of over

£2.0 billion in 2012

100More than

countries

1,000More than

laboratories

and offices

35,000people

over

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Challenges

Innovation in compliance with regulations

Expertise, competencies and capabilities

Fixed cost of technical and regulatory facilities

Material- and Product-Stewardship

Faster and effective market introduction

Innovation

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Challenges

Respond to global compliance demands

Risk Validation of Products and Processes

Sustainability

Material and product Stewardship

Volunteer sustainability in your value proposition

Evaluate Health and safety solutions

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Challenges

Make decisions on data not on thought bubbles

Risk Mitigation

IP and confidentiality protected

Transfer intangible fixed cost into demand

Do a reliability check

Benchmark risk against ROI

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Partnership development through procurement

Buyer Supplier

Buyer / Account manager

BuyerSupplier

Internal organization

Relationship manager

From “Butterfly”Leveraging

To “Diamond”

Collaboration

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• Strategic Programs

• Value Creation by complementarity or added value• Development of joint initiatives

• Team: Customers & Supplier

• Supplier and data management platforms

• Define Improvement Projects to meet strategic

objectives• Plan Improvement Actions

• KPI Review meetings supported by supplier data

• Execution of actions / Projects

• Selecting the right expertise and tools/platforms• Global footprint in execution

Partnership Development Model

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How can a reliable partner help?

It allows you to innovate

Helps you to focus

Mitigates your risks

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They asked for Support from a Third Party…

10

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Innovation Case study: Regulatory Compliance Support

gComply: web-based reference of 70,000+ regulations across 175 countries.

News and Issue Management: Daily early warning for scientific

and regulatory events. Track substances, flag events and push info to others.

gComply Plus: Rule-based Red Light/Green Light compliance analysis and

reporting system; Can integrate with a company’s ERP and PLM systems for formulation checking.

Document Management: Manages all compliance documents

including questionnaires, certificates, MSDSs, lab results etc. and enables gap

analysis to identify missing or out-of-date documents. Provides a clear view of your supply chain.

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Innovation Case study: „usage of new antimicrobial for food packaging“ pilot scale study

Project included:- Pilot plant processing- Mechanical

characterization- Consultancy- Food contact compliance

study

‘Safety first’ also for lab scale experiments

• Interpretation of available safety data

• Discussions with client

• Documentation of precaution

measures

• Evaluations of experiments

• Share experiences

Lab scale compounding

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Car ComponentRaw

MaterialRequirement

13eric.ris@intertek.com

Case Study - Raw Material Selection Automotive Application

Market analyses

of local

Materials

Prototyping using

standard specimen or mass production

injection-mold

Sampling

&

Testing

Certification

& Recommendation

Selection &

processability Manufacturing

Outsourced

1 approvedmaterial

1,000 compounds

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Intertek delivers structure and transparency

Intertek delivers structure and transparency

Risk Mitigation – a Complete Solution

The next generation in Supply Chain Risk Management Services

• Supply Chain Data Analysis and Monitoring

• Supply Chain Traceability

• Predictive Risk Modelling

• Business Continuity Management

• Quality, Environmental and Health & Safety Risk Management

• Anti- Counterfeiting Monitoring

• Customised Assessments

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Supplier Risk Management Platform – Best Practice

Risk IdentificationVerification Services

Supplier OnboardingData Cleansing

ProgramManagement

Capacity Building

• Business Qualification

• Systems Qualification

• Training

An Integrated Partnership Approach with an External Service Provider

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Case Study – Industry Partnership TfS

Together for Sustainability (TfS) – “An audit for one is an audit for all”

• Founded in 2011 by six procurement officers in the German Chemical Industry

• Purpose to develop and implement a global audit program to assess and improve sustainability practices within the supply chains of the chemical industry

• Assessment results and sustainability monitoring services available on a common sustainability monitoring platform.

• Supplier scorecard automatically visible to all TfS member companies

• Intertek is one of the four approved global auditing & monitoring firms

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Business Continuity

� Ensure organizations can quickly and effectively deal with a

significant business disruption

� Minimize revenue loss, enabling organizations to maintain market share and continued investor confidence

� Establish appropriate management practices and good corporate governance

� Proactively handle potential risks and protect the

organizations brand and reputation

� Promote due diligence and overall awareness of potential risks

� Document an overall view of the organizations risk appetite

thus becoming more focused and efficient

� Making the organization more resilient and capable of serving clients during time of crisis

By partnering with Intertek you can leverage the knowledge and expertise of one of the most experienced certification bodies in the industry

By partnering with Intertek you can leverage the knowledge and expertise of one of the most experienced certification bodies in the industry

Leverage our extensive expertise in ISO 22301 and related standards

Leverage our extensive expertise in ISO 22301 and related standards

Business Benefits

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Workplace Conditions Assessment 5 modules:

1-Labor2-Hours & Wages3-Health and Safety4-Management Systems5-Environment

Workplace Conditions Assessment 5 modules:

1-Labor2-Hours & Wages3-Health and Safety4-Management Systems5-Environment

Business Benefits

• Measuring and improving working conditions

• Better decision making supported by real time

data with data mining across industry sectors

and country benchmark

• Flexible program to accommodate different company requirements such as corporate

governance and business integrity

• Community sharing program to reduce audit

fatigue

• Greater transparency and trust with WCA

being used or accepted by more than 80

global buyers

Workplace Conditions Assessment

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Think Green Initiative

Business Benefits

• Provide greater visibility through environmental commitment and performance

• Reducing environmental footprint and costs.

• Improving material efficiency through better resource management including recycling, reuse of materials, and waste reduction.

• Acquiring sustainable business practices.

Think Green Initiative includes:

2 basic assessment modules-Environmental Legal compliance-Environmental Management System

6 individual assessment modules-Water-Air Emissions-Energy-Sustainable Production-Noise Emissions-Hazardous materials, equipment and waste

Think Green Initiative includes:

2 basic assessment modules-Environmental Legal compliance-Environmental Management System

6 individual assessment modules-Water-Air Emissions-Energy-Sustainable Production-Noise Emissions-Hazardous materials, equipment and waste

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Performance Benchmark

•By global

•By country

•By industry

�Water & wastewater

�Energy

�Cost savings

�Air pollutants

�Solid waste

�Hazardous chemicals

Sustainability Data collection•High Performance

•Medium Performance

•Low Performance

•Very Low Performance

Performance Rating

Provide knowledge and insights into environmental performance and

sustainable practices

Case study: Think Green Initiative

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Good Practice

Factory 1 Factory 2 Factory 3 Factory 4

Energy

Efficiency

/Renewable

Energy =

Cost Savings

RMB2,521,440

$365,426 RMB120,000

$17,931RMB 943,426

$140,496

Rp.1,872,000,000

$187,200

Recycle heat from

air pressed generator and

reuse in dyeing

process

Solar heating

system for dormitory showers

Ro system for

Nickel recycling

Energy saving

bulbs

Good Practice Factory 1 Factory 2

Resources &

Material

Efficiency

Recycling of wastewater Raw material usage

efficiency improvement

Achieved 0.7%recycling rate

Achieved 8%solid waste reduction rate

Cost Savings through Good Practices

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Managing and reducing hazardous chemicals throughout your supply chain :

Comprehensive chemical management program

� Identify the source of hazardous chemicals

� Educate & train employees

� Implement a plan for reduction

� Demonstrate effective results

Managing and reducing hazardous chemicals throughout your supply chain :

Comprehensive chemical management program

� Identify the source of hazardous chemicals

� Educate & train employees

� Implement a plan for reduction

� Demonstrate effective results

Environmental Chemical Management

Business Benefits

• Provide greater visibility through environmental commitment and performance

• Leveraging insights for green production and sustainable purchasing.

• Achieving good corporate governance and preferred supplier status.

• Demonstrating commitment and robust ‘green’

credentials to stakeholders

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Customised Outsourced Assessment Services

Can you see through?Can you see through?

Business Benefits

• Create better suppliers based on a continuous

improvement approach

• Increase facility compliance through our

qualification programs

• Provide 2nd party audit for client specific

programs, 3rd party certifications, as well as training and capacity building options for suppliers

• Accredited to all major international auditing

standards

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Supply Chain Control – Managing Data & Risk

� Who exactly are my suppliers?

� How many direct vs. in-direct?

� My level of traceability/ trust?

� Pre-qualified for tender?

� How can I find more buyers?

� How can I register as a supplier?

� Where can I establish a trusted profile?

SuppliersBuyers

Where can I find the answers?

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Find Your Perfect Match - - TradeGood

Genuine buyersSourcing needsCompliance needsRisk and Due diligence needs

Genuine and qualified suppliersBusiness informationCapacity and capabilitiesCompliance performance

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IntertekSupply Chain

Support

Global & Responsive

New-market presence;

Fast services, locally;100 countries

Knowledge

Focused in each supply chain area &

industry

Assurance

Greater visibility & control; Integrating

multiple services

End-to-end presence

Support across the entire

chain; Innovative quality solutions

Independent view

On risk; Different angle to developer

From Quality Control to Quality Confidence

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Intertek Value Proposition

Meeting global

regulatory compliance

Meeting environmental

health and safety

standards

Meeting the sustainability

agenda

Providing solutions to manage your supply chain

Support in innovation enabling

swift market response

On demand supply of

technical and regulatory resources

www.intertek.com28

Valued Quality. Delivered.