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2 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
DISCLAIMER
Certain matters discussed in this presentation may constitute forward-looking
statements that are neither historical facts nor guarantees of future performance.
Because these statements involve risks and uncertainties that are beyond control or
estimation of SGS, there are important factors that could cause actual results to
differ materially from those expressed or implied by these forward looking
statements. These statements speak only as of the date of this document. Except
as required by any applicable law or regulation, SGS expressly disclaims any
obligation to release publicly any updates or revisions to any forward looking
statements contained herein to reflect any change in SGS Group’s expectations
with regard thereto or any change in events or conditions on which any such
statements are based.
HIGHLIGHTS
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
Q&A
HIGHLIGHTS
APPENDIX
4 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 HIGHLIGHTS
(1) Constant currency basis - (2) Before amortisation of acquisition intangibles, restructuring,
transaction and integration-related costs - (3) Cash flow from operating activities less Capex
5 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
2015 7 ACQUISITIONS
(so far…)
H1 2015 ACQUISITIONS
6 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
85,000 EMPLOYEES AROUND THE GLOBE ENABLING
REACH AND LOCAL SUPPORT
OTHER TOPIC
REVENUE ANALYSIS
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
REVENUE ANALYSIS
CURRENCY ANALYSIS
CASH FLOW
BALANCE SHEET
OPERATING INCOME ANALYSIS
Q&A
APPENDIX
8 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 FINANCIAL HIGHLIGHTS
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA (2)
REVENUE 2,752 2,661 2,805
Change in % 3.4% (1.9)%
ADJUSTED OPERATING INCOME (1) 412 399 420
Change in % 3.2% (2.0)%
ADJUSTED OPERATING INCOME MARGIN (1) 15.0% 15.0% 15.0%
OPERATING INCOME (EBIT) 333 376 397
Change in % (11.4)% (16.1)%
OPERATING INCOME (EBIT) MARGIN 12.1% 14.1% 14.1%
ADJUSTED NET INCOME (1) 275 260 275
Change in % 5.8% 0.0%
NET INCOME 214 241 255
Change in % (11.2)% (16.1)%
BASIC EPS (CHF) 28.00 31.49 33.27
9 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 REVENUE GROWTH COMPOSITION
RevenuesJUNE 2014 Organic Acquisitions Disposals
Currencyimpact
RevenuesJUNE 2015
2,805
49 42
(144)
2,752
1.8% 1.6% (0.0)% (5.3)% (1.9)%
Constant currency growth: 3.4%
H1 2014 4.0% 1.3% 0.0% (7.1)% (1.8)%
CHF MIO
10 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 BUSINESS PORTFOLIO
11 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 REVENUE GROWTH(1) BY BUSINESS
1.8%
8.4%
6.6%
5.2%
(3.3)%
6.6%
4.8%
0.4%
0.2%
(1.9)%
3.2%
1.6%
5.8%
19.7%
0.7%
0.9%
TOTAL
GIS
AUTO
ENVI
IND
SSC
CTS
LIFE
OGC
MIN
AGRI
Organic Acquisition Disposal
3.2%
(1.9)%
0.2%
0.4%
5.7%
6.6%
(2.6)%
24.9%
12.4%
8.4%
3.4%
GROWTH
H1 2015 H1 2014
8.1%
(6.0)%
8.9%
7.9%
7.3%
5.7%
8.3%
2.1%
5.3%
2.9%
5.3%
1) Constant currency basis
12 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 REVENUE GROWTH(1) BY REGION
REVENUE
S ASIA
REVENUE
S…
REVENUE
S…
1.8%
1.0%
1.4%
2.7%
1.6%
0.2%
2.1%
2.2%
TOTAL GROUP
ASIA / PACIFIC
AMERICAS
EUROPE / AFRICA &
MIDDLE EAST
Organic Acquisition Disposal
4.9%
3.5%
1.2%
3.4%
GROWTH
3.5%
7.2%
6.9%
5.3%
H1 2015 H1 2014
1) Constant currency basis
13 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
EVOLUTION OF HEADCOUNTS
Δ IN EOP HEADCOUNT JUNE 2015 JUNE 2014 Δ
GROUP HEADCOUNT 85,502 83,592 1,910
Organic Business Growth 2,660
Acquisitions 565
Disposals and Restructurings (1,315)
INCREASE IN GROUP HEADCOUNT 1,910
BY REGION HEADCOUNT
Δ
HEADCOUNT
Δ%
REVENUES
Δ%
Europe / Africa / Middle East 863 2.6% 4.9%
Americas 471 2.4% 3.5%
Asia / Pacific 576 1.9% 1.2%
TOTAL 1,910 2.3% 3.4%
OPERATING INCOME ANALYSIS
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
REVENUE ANALYSIS
CURRENCY ANALYSIS
CASH FLOW
BALANCE SHEET
OPERATING INCOME ANALYSIS
Q&A
APPENDIX
15 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 ADJUSTED OPERATING INCOME(1) GROWTH
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs
Adj. Op. Inc.June 2014 Organic Acquisitions Disposals
Currencyimpact
Adj. Op. Inc.June 2015
H1 2014 3.5% 1.4% 0.0% (9.1)% (4.2)%
CHF MIO
420
4 9
(21)
412
1.1% 2.1% (0.0)% (5.2)% (2.0)%
Constant currency growth: 3.2%
16 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 ADJUSTED OPERATING INCOME(1) PORTFOLIO
AND ADJUSTED OPERATING MARGIN(2) BY BUSINESS
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
14.8
%
13.8
%
11.1
%
8.2%
23.4
%
16.0
%
11.0
%
7.8%
19.8
%
22.6
%
15.3
%
13.3
%
10.8
%
8.6%
22.3
%
14.5
%
11.1
%
12.9
%
18.1
%
23.4
%
5.0%
10.0%
15.0%
20.0%
25.0%
AG
RI
MIN
OG
C
LIF
E
CT
S
SS
C
IND
EN
VI
AU
TO
GIS
JUNE 2014 JUNE 2015
17 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 RESTRUCTURING
OTHER TOPIC
BALANCE SHEET
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
REVENUE ANALYSIS
CURRENCY ANALYSIS
CASH FLOW
BALANCE SHEET
OPERATING INCOME ANALYSIS
Q&A
APPENDIX
19 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 CONSOLIDATED BALANCE SHEET
CHF MIO
ASSETS JUNE 2015 DEC 2014 SHAREHOLDERS' EQUITY AND
LIABILITIES
JUNE 2015 DEC 2014
Land, buildings and equipment 925 1,043 Share capital 8 8
Goodwill 1,012 1,105 Reserves 1,559 2,319
Intangible assets 208 232 SHAREHOLDERS' EQUITY 1,567 2,327
Other Long-term assets 639 268
NON-CURRENT ASSETS 2,784 2,648 NON-CONTROLLING INTERESTS 76 76
Long-term loans 2,216 1,672
Provisions and other liabilities 302 347
NON-CURRENT LIABILITIES 2,518 2,019
Unbilled revenues and inventories 318 330
Trade accounts and notes receivable 910 1,068 Accounts payable 484 511
Other receivables and prepayments 388 371 Other creditors and accruals 802 816
Marketable securities 9 9 Loans 5 18
Cash and cash equivalents 1,043 1,341 CURRENT LIABILITIES 1,291 1,345
CURRENT ASSETS 2,668 3,119 LIABILITIES 3,809 3,364
TOTAL 5,452 5,767 TOTAL 5,452 5,767
20 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 NET WORKING CAPITAL MOVEMENT
OTHER TOPIC
CASH FLOW
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
REVENUE ANALYSIS
CURRENCY ANALYSIS
CASH FLOW
BALANCE SHEET
OPERATING INCOME ANALYSIS
Q&A
APPENDIX
22 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 CONDENSED CASH FLOW
CHF MIO JUNE 2015 JUNE 2014
PROFIT FOR THE PERIOD 231 273
Non-cash items 269 264
Decrease/(increase) in working capital 9 (180)
Taxes paid (110) (97)
CORE OPERATING CASH FLOW 399 260
Non-recurring cash outflows (103) 0
CASH FLOW FROM OPERATING ACTIVITIES 296 260
Net (purchase) of fixed assets (123) (123)
Net (acquisition) of businesses (41) (17)
Investments in long-term bank deposits (310) 0
Other from investing activities 8 1
CASH FLOW FROM INVESTING ACTIVITIES (466) (139)
Dividends paid to equity holders of SGS SA (522) (499)
Dividends paid to non-controlling interests (2) (2)
Net cash (paid)/received on treasury shares (144) 31
Proceeds of corporate bonds 549 362
Interest paid (34) (28)
Net flows on interest rate swaps 16 5
(Decrease) in borrowings (12) (3)
CASH FLOW FROM FINANCING ACTIVITIES (149) (134)
Currency translation 21 (5)
(DECREASE) IN CASH AND CASH EQUIVALENTS (298) (18)
23 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 CORE OPERATING CASH FLOW
(1)Cash flow from operating activities less Capex
146 94 68 146 130 1640.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
50
100
150
200
250
300
350
400
450
2010 2011 2012 2013 2014 2015
CAPEX IN CHF MIO
NON-RECURRING CASH OUTFLOWS IN CHF MIO
FREE CASH FLOW IN CHF MIO
CORE OPERATING CASH FLOW IN % OF REVENUE
114
134176
170130
132
103
260 228 244 316 260 399
(1)
24 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 CAPITAL EXPENDITURE
OTHER TOPIC
CURRENCY ANALYSIS
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
REVENUE ANALYSIS
CURRENCY ANALYSIS
CASH FLOW
BALANCE SHEET
OPERATING INCOME ANALYSIS
Q&A
APPENDIX
26 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H1 2015 FOREIGN CURRENCY REVENUES
27 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
FOREIGN CURRENCY AVERAGE RATE CHANGE
H1 2015 VERSUS H1 2014 RATE
EUR USD CNY AUD GBP CAD TWD BRL KRW CLP
2015 1.0597 0.9483 0.1525 0.7423 1.4449 0.7691 0.0304 0.3212 0.0009 0.0015
2014 1.2214 0.8907 0.1445 0.8144 1.4867 0.8126 0.0295 0.3882 0.0008 0.0016
CHANGE (13.2)% 6.5% 5.5% (8.9)% (2.8)% (5.4)% 3.1% (17.3)% 1.6% (5.2)%
(13.2)%
6.5%5.5%
(8.9)%
(2.8)%
(5.4)%
3.1%
(17.3)%
1.6%
(5.2)%
(20.0)%
(17.0)%
(14.0)%
(11.0)%
(8.0)%
(5.0)%
(2.0)%
1.0%
4.0%
7.0%
28 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
FINANCIAL SUMMARY
Revenue growth of 3.4% despite decline in two of our
four largest businesses.
Maintained Adjusted Operating Margin(1) flat at 15.0%.
Restructuring undertaken to lower the cost base going
forward.
Improvement of free cash flow by 26.2% to CHF 164
million.
Investment of CHF 173 million in Capex / Acquisitions.
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs
BUSINESS REVIEW
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
Q&A
APPENDIX
30 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
AGRICULTURAL SERVICES (AGRI)
Sustained growth despite the curtailment of
CMA activities
Seed & Crop portfolio expansion
Double-digit growth in Laboratory
New contract with Centro de Tecnologia
Canavieira for field evaluation of GM Sugarcane
Trade activities to remain stable
New water management services to be
introduced in selected countries
South America Seed & Crop investments
coming online
Peru Fish ban lifted with reduced scope
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 173.0 167.6 180.5
Change in % 3.2% (4.2)%
ADJUSTED OPERATING INCOME(1) 26.5 24.8 26.9
Change in % 6.9% (1.5)%
MARGIN %(1) 15.3% 14.8% 14.9%
31 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
MINERALS SERVICES (MIN)
Revenues decline at slower rate with stable
growth in Trade inspections
Geo-Chemistry and Metallurgy volumes
remain low
Strong performance in East Europe and Asia
New onsite laboratory for Pavlik Gold in
Russia
Low exploration spending to continue
Demand for steel and steel making raw
materials to remain low
Alignment of costs and network consolidation,
IT solutions to boost productivity
Focus on delivering Mine & Plant Services
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 314.6 320.7 341.1
Change in % (1.9)% (7.8)%
ADJUSTED OPERATING INCOME(1) 41.7 44.2 48.0
Change in % (5.7)% (13.1)%
MARGIN %(1) 13.3% 13.8% 14.1%
32 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
OIL, GAS & CHEMICALS SERVICES (OGC)
Trade-related services benefited from the high
volatility of oil price
Strong decline in Upstream business
Growth in Oil Condition Monitoring from high
sample volume in Asia Pacific and Middle East
Oxy Oman: Two-year well testing contract
Growth in laboratory outsourcing from project
in India
New Fuel Integrity Programmes to be
implemented in Africa
Well testing services and sub-surface
consultancy trend expected to remain in line
with H1
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 554.4 553.4 576.2
Change in % 0.2% (3.8)%
ADJUSTED OPERATING INCOME(1) 60.1 61.7 67.0
Change in % (2.6)% (10.3)%
MARGIN %(1) 10.8% 11.1% 11.6%
33 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
LIFE SCIENCE SERVICES (LIFE)
Strong results in Laboratories
Key growth investments in Italy, India and
USA
Expanded service offerings in USA, France
and China
Margins impacted by Clinical research
Ebola vaccine testing for a pharmaceutical
company
Growth to continue in Laboratories services
with increasing volume and improved margin
Further focus on Key Account Management
and Sales structures to maintain pipeline
Additional investment in new scope and
capacities across most laboratories
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 100.2 99.8 107.5
Change in % 0.4% (6.8)%
ADJUSTED OPERATING INCOME(1) 8.6 8.2 9.0
Change in % 4.9% (4.4)%
MARGIN %(1) 8.6% 8.2% 8.4%
34 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
CONSUMER TESTING SERVICES (CTS)
Resilient growth despite market conditions
Double-digit growth in wireless/mobile device,
automotive parts testing with new models and
products and excellent growth in CPCH
Strong Food growth due to consumer focus on
food safety and recalls
Acquisition of SVA Ltd. expands testing scope
and footprint in the Food sector
E&E to keep growing from recent investments
in Wireless and Bluetooth
Secure new retailers in the USA and South
America
Growth in Automotive, Food and CPCH
segments in Asia from strong local markets
and local regulations
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 534.6 505.9 511.0
Change in % 5.7% 4.6%
ADJUSTED OPERATING INCOME(1) 119.3 118.5 116.1
Change in % 0.7% 2.8%
MARGIN %(1) 22.3% 23.4% 22.7%
35 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
SYSTEMS & SERVICES CERTIFICATION (SSC)
Healthy growth of 6.6% driven by training
activity and management system certification
Solid global performance, especially Africa
Cost pressure from increasing labour costs in
China
Several new contracts secured with leading
hotel groups
Growth is expected to remain at same level
during H2
Margin expected to recover following one-off
training and system setup costs in H1
Continue to expand centralised back-office
activities to improve quality and efficiencies
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 196.5 184.4 193.6
Change in % 6.6% 1.5%
ADJUSTED OPERATING INCOME(1) 28.5 29.5 30.4
Change in % (3.4)% (6.3)%
MARGIN %(1) 14.5% 16.0% 15.7%
36 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
INDUSTRIAL SERVICES (IND)
Oil prices impact revenues in the Americas,
and in South East Asia Pacific
Solid double-digit growth in China and Korea
Margin remained stable reflecting cost
adjustments made during the past months
In Mexico, SGS is successfully executing the
Toluca Rail construction supervision project
Revenues in H2 remain flat versus prior year
Successful renewal of major NDT contracts in
Angola and Qatar
Accelerate strategic investments in fast growth
countries especially China
Margin to remain under pressure, the Group
will implement restructuring during H2
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 426.7 438.3 472.3
Change in % (2.6)% (9.7)%
ADJUSTED OPERATING INCOME(1) 47.4 48.2 50.9
Change in % (1.7)% (6.9)%
MARGIN %(1) 11.1% 11.0% 10.8%
37 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
ENVIRONMENTAL SERVICES (ENVI)
Strong growth, increased market share and
margin improvement
Benefit from recent acquisitions, expanded
footprint in Australia and Brazil
Leader in Industrial Hygiene (IH) testing in the
USA
Significant project with ENI for testing
deepwater reservoirs
Europe to benefit from diversified portfolio and
acquired businesses
Growth in Health & Safety (H&S) and IH
sectors will accelerate the Americas and Asia
Global launch of innovative products
Positive impact of high-value contracts signed
in H1
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 175.3 140.3 152.4
Change in % 24.9% 15.0%
ADJUSTED OPERATING INCOME(1) 22.7 11.0 12.2
Change in % 106.4% 86.1%
MARGIN %(1) 12.9% 7.8% 8.0%
38 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
AUTOMOTIVE SERVICES (AUTO)
Solid results in Statutory Inspection despite
liberalization in Canary Islands
Laboratory expansion and overall strong
performance in the USA
Acquisitions in USA & France to expand
services and footprint
Exclusive Motor Vehicle Inspection Program
awarded in Uganda
Pressure on profitability in Spain with
increasing competition in Canary Islands
Operations in Africa and North America
expected to continue on positive trend
Inspection volumes expected to further
increase in Buenos Aires City and Guayaquil
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 152.0 135.2 147.4
Change in % 12.4% 3.1%
ADJUSTED OPERATING INCOME(1) 27.5 26.8 30.2
Change in % 2.6% (8.9)%
MARGIN %(1) 18.1% 19.8% 20.5%
39 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
OVERVIEW
OUTLOOK
PERFORMANCE
(1) Before amortisation of acquisition intangibles, restructuring, transaction and
integration-related costs - (2) Constant currency basis
GOVERNMENTS AND INSTITUTIONS SERVICES (GIS)
Good growth with excellent performance in
PCA and Single Window
Launch of SGS e-Valuator®
All contracts due for renewal successfully
renewed
World Bank contract in Nepal to supervise
design and implementation of a national single
window and Trade Portal
Establish GIS Telecom Solutions
Expand client base into new Government
service areas
Significant growth in Europe and Americas
As anticipated, PSI likely to decline based on
WCO/WTO guidance
CHF MIO JUNE 2015 JUNE 2014 JUNE 2014
PRO-FORMA(2)
REVENUE 124.7 115.0 123.2
Change in % 8.4% 1.2%
ADJUSTED OPERATING INCOME(1) 29.2 26.0 29.3
Change in % 12.3% (0.3)%
MARGIN %(1) 23.4% 22.6% 23.8%
OUTLOOK
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
Q&A
APPENDIX
41 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
H2 2015 OUTLOOK
(1) at stable market conditions
42 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
SGS INVESTOR DAYS
Q&A
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
Q&A
HIGHLIGHTS
APPENDIX
APPENDIX
FINANCIAL REVIEW
BUSINESS REVIEW
OUTLOOK
HIGHLIGHTS
Q&A
APPENDIX
45 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
ACRONYMS AND OTHER ABBREVIATIONS
CMA: Collateral Management Activities
CPCH: Cosmetics, Personal Care and Household
E&E: Electrical & Electronics
H&S: Health & Safety
IH: Industrial Hygiene
NDT: Non Destructive Testing
PCA: Product conformity assessment
PSI: Pre Shipment Inspection
SGS e-valuator: Facilitate and enhance trade
SGS Layer 4: Supporting the enforcement of telecommunications regulation
46 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
UPCOMING INVESTOR RELATIONS EVENTS
47 HALF-YEAR RESULTS PRESENTATION – 17 JULY 2015 © SGS SA 2015 ALL RIGHTS RESERVED
INVESTOR RELATIONS INFORMATION
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GS
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