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2© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
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 APPENDIX
SGS SERVICE
> Productivity
Management Services
CONSUMER BENEFIT
> Lower prices at
the checkout
4© SGS SA 2017
ALL RIGHTS RESERVED
1. Constant currency basis – 2. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 3. Profit for the period / (Non current assets + Net Working Capital).
2016 HIGHLIGHTS
6.0% 1
CHF 6.0 BN
FX (1.2)%
15.4%
CHF 919 MIO
2.4% 1
19.3%
19.7% 
CHF 
1.0 BN
5.7%
CHF 
70 
CHF 68 
REVENUE
GROWTH
RESTRUCTURING
ADJUSTED
OPERATING
INCOME
MARGIN2
CASH FLOW
FROM
OPERATIONS
ROIC3
IN %
PROPOSED
DIVIDEND
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
CHF 
49 MIO
CHF 64 MIO
5© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 ACQUISITIONS AND STRATEGIC PARTNERSHIPS
ACCUTEST LABORATORIES
(ASSETS)
USA
CARGO COMPLIANCE
COMPANY
NETHERLANDS
THE LAB (ASIA)
(51% STAKE)
HONG KONG
MATROLAB GROUP
SOUTH AFRICA
CYBERMETRIX
USA
BATEMAN PROJECTS
(ASSETS)
SOUTH AFRICA
SUZHOU SAFETY-TECH
(51% STAKE)
CHINA
FIRSTRANK
(75% STAKE)
CHINA
6© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Minority equity stake.
2016 ACQUISITIONS AND STRATEGIC PARTNERSHIPS
EECOLAB
CHILE
AGFLOW 1
(15% STAKE)
SWITZERLAND
UNIGEO AGRICULTURA
DE PRECISÃO
(75% STAKE)
BRAZIL
COMPLIANCE
CERTIFICATION SERVICES
TAIWAN
LABORATORIOS
CONTECON URBAR
COLOMBIA AND PANAMA
IPS TESTING
USA
TRANSPARENCY-ONE 1
(20% STAKE)
USA
SPECHUB
PANAMA
7© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 ACQUISITIONS AND STRATEGIC PARTNERSHIPS
BIOPREMIER
(70% STAKE)
PORTUGAL
C-LABS SA
SWITZERLAND
LAAGRIMA
MOROCCO
ROOS+BIJL
NETHERLANDS
AXYS ANALYTICAL
SERVICES
CANADA
8© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
SUBSEQUENT EVENTS
SENSIMA INSPECTION
(CHF 3 MIO LOAN)
SWITZERLAND
BF MACHINERY AND
CBF ENGINEERING
AUSTRALIA
LABORATOIRE LCA
MOROCCO
9© SGS SA 2017
ALL RIGHTS RESERVED
EUROPE, AFRICA
AND MIDDLE EAST
AMERICAS
ASIA PACIFIC
1. End of period.
92 300 EMPLOYEES1
AND 2 000 OFFICES & LABORATORIES
AROUND THE GLOBE ENABLING REACH AND LOCAL SUPPORT
450
22 100
1 150
37 900
400
32 300
Offices, Labs
& Multi-labs
Employees
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
CONSUMER BENEFIT
> A more secure internet
SGS SERVICE
> Digital Services 
11© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
2016 FINANCIAL HIGHLIGHTS
(CHF million) DECEMBER 2016
DECEMBER 2015
PRO-FORMA2
DECEMBER 2015
REVENUE 5 985 5 644 5 712
Change in % 6.0 4.8
ADJUSTED OPERATING INCOME1
919 898 917
Change in % 2.4 0.2
ADJUSTED OPERATING INCOME MARGIN1
15.4 15.9 16.1
OPERATING INCOME (EBIT) 816 803 822
Change in % 1.6 (0.7)
OPERATING INCOME (EBIT) MARGIN 13.6 14.2 14.4
PROFIT FOR THE PERIOD 586 561 584
Change in % 4.5 0.3
PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF SGS SA 543 527 549
Change in % 3.0 (1.1)
BASIC EPS (CHF) 71.54 69.17 71.99
ADJUSTED BASIC EPS (CHF)1
83.00 79.07 81.95
REVENUE
ADJUSTED
OPERATING
INCOME
BALANCE
SHEET
CASH FLOW
CURRENCY
SECOND
HALF 2016
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
SGS SERVICE
> Digital Services 
CONSUMER BENEFIT
> A more secure internet
13© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 REVENUE GROWTH COMPOSITION
REVENUE
DECEMBER 2015
CHF MIO
2015
ORGANIC
2.0%
ACQUISITIONS
1.6%
DISPOSALS
0.0%
CURRENCY
IMPACT
(6.5)%
REVENUE
DECEMBER 2016
(2.9)%
5 712
203
139
(1) (68)
5 985
2.5% 0.0%3.5% (1.2)% 4.8%
Constant currency growth: 6.0%
14© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 BUSINESS PORTFOLIO
4.6%
GIS
0.2% 0.0% 15.6%
AFL
18.3%
OGC
10.6%
MIN
8.2%
TRP
0.5%
(0.4)%
7.8%
EHS
1.2%
(1.6)%
14.9%
IND
(0.1)%
5.4%
CBE
0.1% 0.1% 14.6%
CRS
2016 REVENUE
Change1
Change1
1. Constant currency basis.
15© SGS SA 2017
ALL RIGHTS RESERVED
2.9%
0.4%
16.7%
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Constant currency basis.
2016 REVENUE GROWTH1
BY BUSINESS
AFL
MIN
OGC
CRS
CBE
IND
EHS
TRP
GIS
TOTAL
Organic Acquisitions Disposals
8.1%
3.5%
5.0%
1.6%
(0.2)%
(2.5)%
1.6%
(2.6)%
4.5%
(0.1)%
4.7%
9.1%
6.9%
7.9%
10.0%
2.5%
GROWTH
2016 2015
6.1%
2.6%
(2.1)%
6.3%
9.1%
5.5%
23.6%
12.9%
10.0%
6.0%
8.2%
 (1.8)%
(2.6)%
2.9%
7.3%
(0.8)%
17.4%
13.5%
12.0%
3.6%
16© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 REVENUE GROWTH1
BY REGION
EUROPE / AFRICA /
MIDDLE EAST
AMERICAS
ASIA / PACIFIC
TOTAL GROUP
9.5%
3.5%
Organic Acquisitions Disposals
Revenue %
1. Constant currency basis.
3.3%
0.1%
1.3%3.2%
2.5%
1.9%
2016 2015
GROWTH
5.2%
9.6%
4.5%
6.0%
5.0%
4.6%
0.8%
3.6%
17© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
EVOLUTION OF HEADCOUNTS
HEADCOUNT END OF PERIOD
2 188 3 074 (955)
HEADCOUNT AVERAGE
2015
2015
2016
2016
85 90387 962
89 62692 269
89 62692 269
HEADCOUNT
AVERAGE HEADCOUNT % REVENUE %
Europe/Africa/
Middle East
2 097 6.0 5.2
Americas 1 559 7.8 9.6
Asia/Pacific 67 0.2 4.5
TOTAL 3 723 4.3 6.0
BY REGION
3 723 INCREASE
4.3%
4 307 INCREASE
4.9%
GROUP HEADCOUNT END OF PERIOD
ORGANIC
BUSINESS
GROWTH ACQUISITIONS
DISPOSALS AND
RESTRUCTURING
GROUP HEADCOUNT AVERAGE
APPENDIX
REVENUE
ADJUSTED
OPERATING
INCOME
BALANCE
SHEET
CASH FLOW
CURRENCY
SECOND
HALF 2016
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A
SGS SERVICE
> Digital Services 
CONSUMER BENEFIT
> A more secure internet
19© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items.
2016 ADJUSTED OPERATING INCOME1
GROWTH
ADJ. OP. INC.
DECEMBER 2015
2015
ORGANIC
1.2%
ACQUISITIONS
2.0%
DISPOSALS
0.0%
CURRENCY
IMPACT
(6.4)%
ADJ. OP. INC.
DECEMBER 2016
(3.2)%
917
20
2
- (20)
919
0.2% 0.0%2.2% (2.2)% 0.2%
Constant currency growth: 2.4%
CHF MIO
20© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
2016 ADJUSTED OPERATING INCOME1
PORTFOLIO
Change2
Change2
7.2%
GIS
0.7% 0.0% 16.0%
AFL
12.7%
OGC
9.9%
MIN
8.5%
TRP
(0.5)%
0.3%
6.0%
EHS
0.7%
(1.4)%
9.1%
IND
(1.4)%
6.3%
CBE
0.9% 0.7% 24.3%
CRS
21© SGS SA 2017
ALL RIGHTS RESERVED
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
ADJUSTED OPERATING MARGIN1
BY BUSINESS
30%
25%
20%
15%
10%
5%
0%
AFL CRSMIN CBE TRPOGC IND GISEHS
16.3%
14.0%
11.3%
25.8%
16.2%
11.1%
12.8%
18.5%
23.2%
15.7%
14.3%
10.6%
25.6%
17.7%
9.4%
11.8%
16.0%
24.2%
20152
2016
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
22© SGS SA 2017
ALL RIGHTS RESERVED
PROCUREMENT EFFICIENCY
PROCUREMENT SAVINGS BY REGION PROCUREMENT SAVINGS BY NATURE
57 57
60
50
40
30
20
10
0
Americas Asia Pacific EAME
TARGET 2016
17
18
19
22
18
20
ACTUAL 2016
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
19%
OPEX cost
avoidance
16%
CAPEX
65%
OPEX P&L
23© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 RESTRUCTURING
CHF
49MIO IN RESTRUCTURING
RESTRUCTURING BY BUSINESS RESTRUCTURING BY REGION
24.7%
Asia / Pacific
9.6%
Americas
65.7%
Europe / Africa
/ Middle East
15.2%
AFL
59.0%
OGC
TOTAL
6.9%
MIN
10.1%
TRP
0.9%
EHS
6.2%
IND
0.8%
CBE
0.9%
CRS
54.7%
OGC
ASSET
WRITE-DOWN
4.3%
OGC
OTHER
REVENUE
ADJUSTED
OPERATING
INCOME
BALANCE
SHEET
CASH FLOW
CURRENCY
SECOND
HALF 2016
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
SGS SERVICE
> Digital Services 
CONSUMER BENEFIT
> A more secure internet
25© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Restated figures (cf note 2 of the 2016 annual report) –
2. Profit for the period / (Non current assets + Net Working Capital).
2016 CONSOLIDATED BALANCE SHEET
(CHF million) DEC 2016 DEC 20151
Land, buildings and equipment 972 964
Goodwill 1 195 1 088
Intangible assets 246 218
Other Long-term assets 325 347
NON-CURRENT ASSETS 2 738 2 617
Unbilled revenues and inventories 290 288
Trade accounts and notes receivable 997 917
Other receivables and prepayments 340 338
Marketable securities 9 244
Cash and cash equivalents 975 1 490
CURRENT ASSETS 2 611 3 277
TOTAL 5 349 5 894
ROIC2
19.3% 19.7%
(CHF million) DEC 2016 DEC 20151
Share capital 8 8
Reserves 1 765 1 898
SHAREHOLDERS’ EQUITY 1 773 1 906
NON-CONTROLLING INTERESTS 80 75
Long-term loans1
1 719 1 723
Provisions and other liabilities 289 338
NON-CURRENT LIABILITIES 2 008 2 061
Accounts payable 641 526
Other creditors and accruals 846 832
Loans1
1 494
CURRENT LIABILITIES 1 488 1 852
LIABILITIES 3 496 3 913
TOTAL 5 349 5 894
ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES
NET DEBT (736) (482)
REVENUE
ADJUSTED
OPERATING
INCOME
BALANCE
SHEET
CASH FLOW
CURRENCY
SECOND
HALF 2016
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
SGS SERVICE
> Digital Services 
CONSUMER BENEFIT
> A more secure internet
27© SGS SA 2017
ALL RIGHTS RESERVED
2016 CONDENSED CASH FLOW
(CHF million) DEC 2016 DEC 2015
PROFIT FOR THE PERIOD 586 584
Non-cash items 560 541
(Increase)/decrease in working capital 75 160
Taxes paid (207) (223)
CORE OPERATING CASH FLOW1
1 014 1 062
Pension funds special contribution - (103)
CASH FLOW FROM OPERATING ACTIVITIES 1 014 959
Net (purchase) of fixed assets (276) (286)
Net (acquisition) of businesses (172) (104)
Decrease/(increase) in marketable securities and other 247 (235)
CASH FLOW FROM INVESTING ACTIVITIES (201) (625)
Dividends paid to equity holders of SGS SA (517) (522)
Dividends paid to non-controlling interests (39) (34)
Transaction with non-controlling interests (4) (2)
Net cash received on treasury shares (161) (147)
(Reimbursments)/Proceeds of corporate bonds (491) 549
Interest paid (58) (55)
Net flows on interest rate swaps - 16
(Decrease)/increase in borrowings (3) (15)
CASH FLOW FROM FINANCING ACTIVITIES (1 273) (210)
Currency translation (55) 25
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (515) 149
FREE CASH FLOW2
738 658
1. Before cash flows related to pension fund special contribution –
2. Cash flow from operating activities net of capital expenditures.
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
28© SGS SA 2017
ALL RIGHTS RESERVED
2016 NET WORKING CAPITAL MOVEMENT
AVERAGE 2010 – 2014 2015 2016
CHF 
75 MIO
CHF 
160 MIO
CHF 
(66) MIO
TOTAL 2015 – 2016 IMPROVEMENT
CHF 
235 MIO
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
29© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 OPERATING CASH FLOW
1. Cash flow from operating activities less net Capex – 2. Operating cash flow / Adjusted EBITDA.
1 200
1 100
1 000
900
800
700
600
500
400
300
200
100
0
2012
67.6%
2013
75.8%
2014
74.4%
2015
80.5%
2016
84.6%
948798 912 959 1 014
Net CAPEX
in CHF MIO
Free cash flow1
in CHF MIO
Operating cash flow
in % of revenue
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
386
357 305
301
276
412
591 607
658 738
ADJ. CASH CONVERSION RATIO2
30© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 CAPITAL EXPENDITURE
CAPEX BY REGION
ANNUAL CAPEX CHF MIO
400
300
200
2011 20152012 20162013 2014
Capital
Expenditure
Depreciation and
amortisation
CHF 
288 MIO
CHF 
288 MIO
4.0%
GIS
15.0%
TRP
6.8%
EHS
12.2%
IND
1.3%
CBE
17.3%
AFL
17.0%
OGC
7.4%
MIN
19.0%
CRS
CAPEX BY BUSINESS
33.9%
Asia / Pacific
19.4%
Americas
46.7%
Europe / Africa
/ Middle East
31© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Net Capex.
CASH SOURCES AND USES IN 2016
SOURCES USES
CHF 1.0 BN
CHF 1.1 BN
ORGANIC CASH FLOW GENERATION COVERING 90% OF USES
OPERATING CASH
FLOW GENERATION
GROWTH OPPORTUNITIES
•	Organic growth1
•	 M&A
SHAREHOLDERS RETURNS
•	Dividends paid
•	Share buy-back programme
CHF 0.4 BN
CHF 0.7 BN
REVENUE
ADJUSTED
OPERATING
INCOME
BALANCE
SHEET
CASH FLOW
CURRENCY
SECOND
HALF 2016
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
SGS SERVICE
> Digital Services 
CONSUMER BENEFIT
> A more secure internet
33© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
2016 FOREIGN CURRENCY REVENUES
MAJOR CURRENCIES
26.6%
OTHER
2.3%
HKD
2.4%
AUD
2.7%
BRL
3.1%
GBP
3.1%
CLP
3.3%
CAD
25.9%
EUR
14.4%
USD
12.8%
CNY
3.4%
TWD
34© SGS SA 2017
ALL RIGHTS RESERVED
EUR USD CNY TWD CAD CLP GBP BRL AUD HKD
2016
2015
CHANGE
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
FOREIGN CURRENCY AVERAGE RATE CHANGE
FY 2016 VERSUS FY 2015 RATE
4%
2%
0%
(2)%
(4)%
(6)%
(8)%
(10)%
2.0% 2.3%
(3.2)%
0.7%
(1.4)% (1.3)%
(9.2)%
1.1%
(3.4)%
2.2%
1.0901
1.0691
2.0%
0.9849
0.9626
2.3%
0.1483
0.1532
(3.2)%
0.0305
0.0303
0.7%
0.7436
0.7545
(1.4)%
0.0015
0.0015
(1.3)%
1.3360
1.4719
(9.2)%
0.2838
0.2937
(3.4)%
0.7327
0.7244
1.1%
0.1269
0.1242
2.2%
REVENUE
ADJUSTED
OPERATING
INCOME
BALANCE
SHEET
CASH FLOW
CURRENCY
SECOND
HALF 2016
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
SGS SERVICE
> Digital Services 
CONSUMER BENEFIT
> A more secure internet
36© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
H2 2016 FINANCIAL HIGHLIGHTS
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
(CHF million) 2016 H2
2015 H2
PRO-FORMA2
2015 H2
REVENUE 3 084 2 932 2 960
Change in % 5.2 4.2
ADJUSTED OPERATING INCOME1
508 497 505
Change in % 2.2 0.6
ADJUSTED OPERATING INCOME MARGIN1
16.5 17.0 17.1
OPERATING INCOME (EBIT) 422 480 489
Change in % (12.1) (13.7)
OPERATING INCOME (EBIT) MARGIN 13.7 16.4 16.5
PROFIT FOR THE PERIOD 309 337 353
Change in % (8.1) (12.4)
PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF SGS SA 289 320 335
Change in % (9.7) (13.7)
37© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
H2 2016 REVENUE GROWTH COMPOSITION
REVENUE
H2 2015
CHF MIO
H2 2015
ORGANIC
2.2%
ACQUISITIONS
1.6%
DISPOSALS
0.0%
CURRENCY
IMPACT
(7.6)%
REVENUE
H2 2016
(3.8)%
2 960
107
46
(1) (28)
3 084
1.6% 0.0%3.6% (1.0)% 4.2%
Constant currency growth: 5.2%
38© SGS SA 2017
ALL RIGHTS RESERVED
4.0%
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
H2 2016 REVENUE GROWTH1
BY BUSINESS
1. Constant currency basis.
AFL
MIN
OGC
CRS
CBE
IND
EHS
TRP
GIS
TOTAL
Organic Acquisitions Disposals
7.7%
3.6%
16.1%
3.6%
2.8% 1.2%
(0.2)%
(2.9)% 0.4%
2.9%3.9%
7.5%
(4.8)%
4.4%
8.3%
11.7%
1.6%
(0.1)%
GROWTH
2016 2015
4.0%
3.7%
(2.5)%
6.8%
7.5%
2.9%
20.5%
11.9%
11.7%
5.2%
10.4%
(1.6)%
(4.8)%
2.6%
8.4%
1.5%
11.0%
14.6%
15.5%
3.8%
39© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
H2 2016 ADJUSTED OPERATING MARGIN1
BY BUSINESS
30%
25%
20%
15%
10%
5%
0%
AFL CRSMIN CBE TRPOGC IND GISEHS
18.9%
14.9%
12.0%
26.8%
17.3%
11.3%
12.6%
20.1%
23.5%
17.2%
15.6%
11.3%
26.6%
20.2%
9.3%
13.0%
16.1%
28.4%
H2 20152
H2 2016
40© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
FINANCIAL SUMMARY
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring
items – 2. Profit for the period / (Non current assets + Net Working Capital).
··Revenue growth of 6.0% of which 2.5% organic
··Increase in Adjusted Operating Income1
on a constant
currency basis by 2.4%
··Investment of CHF 448 million in Capex and Acquisitions
··Operating cash flow of 1.0 billion
··Return on Invested Capital (ROIC2
) of 19.3%
··Proposed dividend of CHF 70 
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
SGS SERVICE
> Polymer Testing
CONSUMER BENEFIT
> More responsive
carbon fibre products
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
AGRICULTURE, FOOD AND LIFE (AFL)
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 934.9 880.9 892.4
Change in % 6.1 4.8
ADJUSTED
OPERATING INCOME¹
147.2 144.0 146.8
Change in % 2.2 0.3
MARGIN %¹ 15.7 16.3 16.5
OVERVIEW
··Solid growth from Food, Life and Trade activities
··Strong testing services drove Food in Asia and
high demand for certification
··Slow input market impacted Seed & Crop
··Double-digit growth in Life laboratories
··Strategic investment in Transparency One
and AgFlow
OUTLOOK
··Recent investments and strong demand for
food safety will drive growth
··Strong organic growth expected in Life laboratories
··Acquisition of Unigeo along with new services
will benefit Seed and Crop portfolio
··Trade activities to remain strong
42© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
MINERALS (MIN)
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
OVERVIEW
··Double-digit growth from high sample volumes
in Geochem laboratories
··Energy performed well, particularly in Russia,
Colombia and Vietnam
··Solid results in Trade services from steel and
raw materials and fertilizer activities
··Reduced exploration spend impacted Metallurgy
OUTLOOK
··Commodity prices expected to stabilise
··Increased interest to continue in on-site
laboratories activities
··More opportunities expected for new mine
and plant services
··Well positioned to benefit from expected
market improvement
(CHF million) 2016
2015
PRO-FORMA2
2015
REVENUE 635.0 618.9 632.8
Change in % 2.6 0.3
ADJUSTED
OPERATING INCOME¹
90.9 86.6 89.6
Change in % 5.0 1.5
MARGIN %¹ 14.3 14.0 14.2
43© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
OIL, GAS AND CHEMICALS (OGC)
OVERVIEW
··Trade-related activities remained flat
··Solid results in Sample Management segment
and Oil Condition Monitoring
··Plant and Terminal Operations (PTO) remained stable
··Upstream services continued to be impacted
by market conditions
OUTLOOK
··Oil and Gas market expected to stabilise
··Price volatility and increased trade volume
to benefit Trade-related activities and PTO
··Non-Inspection-related testing to remain flat
··Upstream services to focus on production market
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 1 098.4 1 122.2 1 126.4
Change in % (2.1) (2.5)
ADJUSTED
OPERATING INCOME¹
116.4 126.5 128.6
Change in % (8.0) (9.5)
MARGIN %¹ 10.6 11.3 11.4
44© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
CONSUMER AND RETAIL (CRS)
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
OVERVIEW
··Solid results from Central and Eastern Europe
and Asia
··Strong growth in Softlines and Hardlines
··Cosmetics, Personal Care and Household performs
well in China, Germany and North America
··Robust performance in Electrical & Electronics
despite challenges in Wireless testing market
OUTLOOK
··Strong performance in most regions despite impact
of Wireless activity
··Strong growth to continue in Softlines and Hardlines
··Significant growth in Restriction of Hazardous
Substance testing
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 872.8 821.2 826.1
Change in % 6.3 5.7
ADJUSTED
OPERATING INCOME¹
223.6 212.0 215.7
Change in % 5.5 3.7
MARGIN %¹ 25.6 25.8 26.1
45© SGS SA 2017
ALL RIGHTS RESERVED
CERTIFICATION AND BUSINESS ENHANCEMENT (CBE)
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
OVERVIEW
··Strong organic growth driven by all activities
··High demand for ISO 9001:2015 and
ISO 14001 standards
··Solid growth in industry-specific technical training
and new on-line courses
··Double-digit growth in performance management
··Germany returns to growth and profitability
OUTLOOK
··Performance to remain healthy across portfolio
··Training activities to deliver double digits
··Management System Certification to get boost
from new ISO 2015 standard
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 324.1 297.0 298.6
Change in % 9.1 8.5
ADJUSTED
OPERATING INCOME¹
57.5 48.2 48.7
Change in % 19.3 18.1
MARGIN %¹ 17.7 16.2 16.3
46© SGS SA 2017
ALL RIGHTS RESERVED
INDUSTRIAL (IND)
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
OVERVIEW
··Acquisitive growth drives revenues offsetting
weak organic performance
··Double-digit growth in laboratory testing with added
capabilities in construction and calibration testing
··Low capital investment and spending affected
Energy and Construction activities impacting
organic growth
OUTLOOK
··Energy sector to remain challenging
··Low investment and high competition expected
in Infrastructure and Construction
··Manufacturing sector to grow in single digits
··Laboratory services will maintain single-digit growth
trend, both organically and acquisitively
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 890.9 844.2 852.4
Change in % 5.5 4.5
ADJUSTED
OPERATING INCOME¹
83.6 93.9 95.5
Change in % (11.0) (12.5)
MARGIN %¹ 9.4 11.1 11.2
47© SGS SA 2017
ALL RIGHTS RESERVED
ENVIRONMENT, HEALTH AND SAFETY (EHS)
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
OVERVIEW
··Strong results in Europe from high volume/high
margin laboratory contracts
··Acquisitions strengthen presence and global service
portfolio in the USA
··High single-digit growth in South America
with strong demand for dioxins testing
··Margin pressure continued in Australia
OUTLOOK
··Continued focus on Health & Safety and
Testing services
··New regulations to accelerate Marine
services revenue
··Optimisation of Accutest network will
improve margins
··New opportunities for drones in field services
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 464.3 375.7 375.6
Change in % 23.6 23.6
ADJUSTED
OPERATING INCOME¹
54.9 48.0 48.0
Change in % 14.4 14.4
MARGIN %¹ 11.8 12.8 12.8
48© SGS SA 2017
ALL RIGHTS RESERVED
TRANSPORTATION (TRP)
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items –
2. Constant currency basis – 3. Restated figures due to the change in business structure.
OVERVIEW
··Solid performance in Regulated services particularly
in Vehicle Inspection services
··Strong performance in commercial
inspection activities
··Growth in testing services with solid results
from China, France, India and USA
··Successful replication of services from acquisitions
OUTLOOK
··Tightening of exhaust emissions regulations
will drive growth
··Shift to connectivity and digitalisation will support
solid supply chain solutions growth
··Positive outlook for Regulated services in Africa
and South America
··Focus on acquisitions in the Aerospace sector
(CHF million) 2016
2015
PRO-FORMA2, 3
20153
REVENUE 489.8 433.7 447.6
Change in % 12.9 9.4
ADJUSTED
OPERATING INCOME¹
78.5 80.4 82.1
Change in % (2.4) (4.4)
MARGIN %¹ 16.0 18.5 18.3
49© SGS SA 2017
ALL RIGHTS RESERVED
GOVERNMENTS AND INSTITUTIONS (GIS)
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
1. Before amortisation of acquisition intangibles, restructuring and other
non-recurring items – 2. Constant currency basis.
OVERVIEW
··Growth in PCA with two new programmes
in Cameroon and Gabon
··Enhanced e-Gov programme deployed in Ghana
··100% scanning programme using SGS Dtect®
deployed in Cameroon
··High import volumes drove Single Window
solutions performance
OUTLOOK
··Improved cost control measures and modernisation
of inspection services
··Reinforcement of centralised solutions
··Extension of Single Window in Ghana
··Good prospects for SGS Dtect®
··New innovative services: SGS e-waste
monitoring solutions, SGS e-tax solution,
SGS land management solution
(CHF million) 2016
2015
PRO-FORMA2
2015
REVENUE 274.7 249.8 260.0
Change in % 10.0 5.7
ADJUSTED
OPERATING INCOME¹
66.6 58.0 62.3
Change in % 14.8 6.9
MARGIN %¹ 24.2 23.2 24.0
50© SGS SA 2017
ALL RIGHTS RESERVED
HIGHLIGHTS FINANCIAL
REVIEW
BUSINESS
REVIEW
OUTLOOK Q&A APPENDIX
CONSUMER BENEFIT
> Trusting that purchases
made online are up
to scratch
SGS SERVICE
> E-Commerce Quality
Control Service
52© SGS SA 2017
ALL RIGHTS RESERVED
SOLID ORGANIC
REVENUE GROWTH
HIGHER ADJUSTED
OPERATING INCOME ROBUST CASH FLOW
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
GUIDANCE 20171
1. At stable market conditions.
53© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
OUTLOOK 2020
··Mid single digit organic growth on average with
improvement over the period supported by the new
focused structure and new strategic initiatives
··Accelerating M&A activities with acquired revenue over
the period in the range of CHF 1 billion
··Adjusted Operating Income Margin of at least 18% by
end of the period supported by the new focused structure,
new strategic and efficiency improvement initiatives
··Strong cash conversion
··Solid returns on invested capital
··Solid dividend distribution, in line with improvement
in net earnings
54© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
UPCOMING EVENT DATES
ANNUAL GENERAL MEETING
OF SHAREHOLDERS
Monday, 21 March 2017
Geneva, Switzerland
2017 HALF YEAR RESULTS
Monday, 17 July 2017
INVESTOR DAYS (IN ASIA)
Thursday and Friday
26 and 27 October 2016
DIVIDEND PAYMENT DATES
Ex-Date: 23 March 2017
Record data: 24 March 2017
Payment date: 27 March 2017
55© SGS SA 2017
ALL RIGHTS RESERVED
FULL-YEAR RESULTS PRESENTATION
23 JANUARY 2017
SGS SA CORPORATE OFFICE
1 place des Alpes
P.O. Box 2152
CH – 1211 Geneva 1
t +41 (0)22 739 91 11
f +41 (0)22 739 98 86
e sgs.investor.relations@sgs.com
www.sgs.com
CORPORATE DEVELOPMENT,
COMMUNICATIONS & INVESTOR RELATIONS
Jean-Luc de Buman
SGS SA
1 place des Alpes
P.O. Box 2152
CH – 1211 Geneva 1
t +41 (0)22 739 93 31
f +41 (0)22 739 92 00
www.sgs.com
STOCK EXCHANGE TRADING
SIX Swiss Exchange
COMMON STOCK SYMBOLS
Bloomberg: Registered Share: SGSN.VX
Reuters: Registered Share: SGSN.VX
Telekurs: Registered Share: SGSN
ISIN: Registered Share: CH0002497458
Swiss security number: 249745
STOCK EXCHANGE LISTING
SIX Swiss Exchange, SGSN
INVESTOR RELATIONS INFORMATION
©SGSGroupManagementSA–2017–Allrightsreserved–SGSisaregisteredtrademarkofSGSGroupManagementSA.
WWW.SGS.COM

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SGS 2016 Full Year Results Presentation

  • 1.
  • 2. 2© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 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.
  • 3. HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Productivity Management Services CONSUMER BENEFIT > Lower prices at the checkout
  • 4. 4© SGS SA 2017 ALL RIGHTS RESERVED 1. Constant currency basis – 2. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 3. Profit for the period / (Non current assets + Net Working Capital). 2016 HIGHLIGHTS 6.0% 1 CHF 6.0 BN FX (1.2)% 15.4% CHF 919 MIO 2.4% 1 19.3% 19.7%  CHF  1.0 BN 5.7% CHF  70  CHF 68  REVENUE GROWTH RESTRUCTURING ADJUSTED OPERATING INCOME MARGIN2 CASH FLOW FROM OPERATIONS ROIC3 IN % PROPOSED DIVIDEND FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 CHF  49 MIO CHF 64 MIO
  • 5. 5© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 ACQUISITIONS AND STRATEGIC PARTNERSHIPS ACCUTEST LABORATORIES (ASSETS) USA CARGO COMPLIANCE COMPANY NETHERLANDS THE LAB (ASIA) (51% STAKE) HONG KONG MATROLAB GROUP SOUTH AFRICA CYBERMETRIX USA BATEMAN PROJECTS (ASSETS) SOUTH AFRICA SUZHOU SAFETY-TECH (51% STAKE) CHINA FIRSTRANK (75% STAKE) CHINA
  • 6. 6© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Minority equity stake. 2016 ACQUISITIONS AND STRATEGIC PARTNERSHIPS EECOLAB CHILE AGFLOW 1 (15% STAKE) SWITZERLAND UNIGEO AGRICULTURA DE PRECISÃO (75% STAKE) BRAZIL COMPLIANCE CERTIFICATION SERVICES TAIWAN LABORATORIOS CONTECON URBAR COLOMBIA AND PANAMA IPS TESTING USA TRANSPARENCY-ONE 1 (20% STAKE) USA SPECHUB PANAMA
  • 7. 7© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 ACQUISITIONS AND STRATEGIC PARTNERSHIPS BIOPREMIER (70% STAKE) PORTUGAL C-LABS SA SWITZERLAND LAAGRIMA MOROCCO ROOS+BIJL NETHERLANDS AXYS ANALYTICAL SERVICES CANADA
  • 8. 8© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 SUBSEQUENT EVENTS SENSIMA INSPECTION (CHF 3 MIO LOAN) SWITZERLAND BF MACHINERY AND CBF ENGINEERING AUSTRALIA LABORATOIRE LCA MOROCCO
  • 9. 9© SGS SA 2017 ALL RIGHTS RESERVED EUROPE, AFRICA AND MIDDLE EAST AMERICAS ASIA PACIFIC 1. End of period. 92 300 EMPLOYEES1 AND 2 000 OFFICES & LABORATORIES AROUND THE GLOBE ENABLING REACH AND LOCAL SUPPORT 450 22 100 1 150 37 900 400 32 300 Offices, Labs & Multi-labs Employees FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017
  • 10. HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX CONSUMER BENEFIT > A more secure internet SGS SERVICE > Digital Services 
  • 11. 11© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. 2016 FINANCIAL HIGHLIGHTS (CHF million) DECEMBER 2016 DECEMBER 2015 PRO-FORMA2 DECEMBER 2015 REVENUE 5 985 5 644 5 712 Change in % 6.0 4.8 ADJUSTED OPERATING INCOME1 919 898 917 Change in % 2.4 0.2 ADJUSTED OPERATING INCOME MARGIN1 15.4 15.9 16.1 OPERATING INCOME (EBIT) 816 803 822 Change in % 1.6 (0.7) OPERATING INCOME (EBIT) MARGIN 13.6 14.2 14.4 PROFIT FOR THE PERIOD 586 561 584 Change in % 4.5 0.3 PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF SGS SA 543 527 549 Change in % 3.0 (1.1) BASIC EPS (CHF) 71.54 69.17 71.99 ADJUSTED BASIC EPS (CHF)1 83.00 79.07 81.95
  • 12. REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW CURRENCY SECOND HALF 2016 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Digital Services  CONSUMER BENEFIT > A more secure internet
  • 13. 13© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 REVENUE GROWTH COMPOSITION REVENUE DECEMBER 2015 CHF MIO 2015 ORGANIC 2.0% ACQUISITIONS 1.6% DISPOSALS 0.0% CURRENCY IMPACT (6.5)% REVENUE DECEMBER 2016 (2.9)% 5 712 203 139 (1) (68) 5 985 2.5% 0.0%3.5% (1.2)% 4.8% Constant currency growth: 6.0%
  • 14. 14© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 BUSINESS PORTFOLIO 4.6% GIS 0.2% 0.0% 15.6% AFL 18.3% OGC 10.6% MIN 8.2% TRP 0.5% (0.4)% 7.8% EHS 1.2% (1.6)% 14.9% IND (0.1)% 5.4% CBE 0.1% 0.1% 14.6% CRS 2016 REVENUE Change1 Change1 1. Constant currency basis.
  • 15. 15© SGS SA 2017 ALL RIGHTS RESERVED 2.9% 0.4% 16.7% FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Constant currency basis. 2016 REVENUE GROWTH1 BY BUSINESS AFL MIN OGC CRS CBE IND EHS TRP GIS TOTAL Organic Acquisitions Disposals 8.1% 3.5% 5.0% 1.6% (0.2)% (2.5)% 1.6% (2.6)% 4.5% (0.1)% 4.7% 9.1% 6.9% 7.9% 10.0% 2.5% GROWTH 2016 2015 6.1% 2.6% (2.1)% 6.3% 9.1% 5.5% 23.6% 12.9% 10.0% 6.0% 8.2%  (1.8)% (2.6)% 2.9% 7.3% (0.8)% 17.4% 13.5% 12.0% 3.6%
  • 16. 16© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 REVENUE GROWTH1 BY REGION EUROPE / AFRICA / MIDDLE EAST AMERICAS ASIA / PACIFIC TOTAL GROUP 9.5% 3.5% Organic Acquisitions Disposals Revenue % 1. Constant currency basis. 3.3% 0.1% 1.3%3.2% 2.5% 1.9% 2016 2015 GROWTH 5.2% 9.6% 4.5% 6.0% 5.0% 4.6% 0.8% 3.6%
  • 17. 17© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 EVOLUTION OF HEADCOUNTS HEADCOUNT END OF PERIOD 2 188 3 074 (955) HEADCOUNT AVERAGE 2015 2015 2016 2016 85 90387 962 89 62692 269 89 62692 269 HEADCOUNT AVERAGE HEADCOUNT % REVENUE % Europe/Africa/ Middle East 2 097 6.0 5.2 Americas 1 559 7.8 9.6 Asia/Pacific 67 0.2 4.5 TOTAL 3 723 4.3 6.0 BY REGION 3 723 INCREASE 4.3% 4 307 INCREASE 4.9% GROUP HEADCOUNT END OF PERIOD ORGANIC BUSINESS GROWTH ACQUISITIONS DISPOSALS AND RESTRUCTURING GROUP HEADCOUNT AVERAGE
  • 18. APPENDIX REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW CURRENCY SECOND HALF 2016 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A SGS SERVICE > Digital Services  CONSUMER BENEFIT > A more secure internet
  • 19. 19© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items. 2016 ADJUSTED OPERATING INCOME1 GROWTH ADJ. OP. INC. DECEMBER 2015 2015 ORGANIC 1.2% ACQUISITIONS 2.0% DISPOSALS 0.0% CURRENCY IMPACT (6.4)% ADJ. OP. INC. DECEMBER 2016 (3.2)% 917 20 2 - (20) 919 0.2% 0.0%2.2% (2.2)% 0.2% Constant currency growth: 2.4% CHF MIO
  • 20. 20© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. 2016 ADJUSTED OPERATING INCOME1 PORTFOLIO Change2 Change2 7.2% GIS 0.7% 0.0% 16.0% AFL 12.7% OGC 9.9% MIN 8.5% TRP (0.5)% 0.3% 6.0% EHS 0.7% (1.4)% 9.1% IND (1.4)% 6.3% CBE 0.9% 0.7% 24.3% CRS
  • 21. 21© SGS SA 2017 ALL RIGHTS RESERVED 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. ADJUSTED OPERATING MARGIN1 BY BUSINESS 30% 25% 20% 15% 10% 5% 0% AFL CRSMIN CBE TRPOGC IND GISEHS 16.3% 14.0% 11.3% 25.8% 16.2% 11.1% 12.8% 18.5% 23.2% 15.7% 14.3% 10.6% 25.6% 17.7% 9.4% 11.8% 16.0% 24.2% 20152 2016 FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017
  • 22. 22© SGS SA 2017 ALL RIGHTS RESERVED PROCUREMENT EFFICIENCY PROCUREMENT SAVINGS BY REGION PROCUREMENT SAVINGS BY NATURE 57 57 60 50 40 30 20 10 0 Americas Asia Pacific EAME TARGET 2016 17 18 19 22 18 20 ACTUAL 2016 FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 19% OPEX cost avoidance 16% CAPEX 65% OPEX P&L
  • 23. 23© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 RESTRUCTURING CHF 49MIO IN RESTRUCTURING RESTRUCTURING BY BUSINESS RESTRUCTURING BY REGION 24.7% Asia / Pacific 9.6% Americas 65.7% Europe / Africa / Middle East 15.2% AFL 59.0% OGC TOTAL 6.9% MIN 10.1% TRP 0.9% EHS 6.2% IND 0.8% CBE 0.9% CRS 54.7% OGC ASSET WRITE-DOWN 4.3% OGC OTHER
  • 24. REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW CURRENCY SECOND HALF 2016 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Digital Services  CONSUMER BENEFIT > A more secure internet
  • 25. 25© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Restated figures (cf note 2 of the 2016 annual report) – 2. Profit for the period / (Non current assets + Net Working Capital). 2016 CONSOLIDATED BALANCE SHEET (CHF million) DEC 2016 DEC 20151 Land, buildings and equipment 972 964 Goodwill 1 195 1 088 Intangible assets 246 218 Other Long-term assets 325 347 NON-CURRENT ASSETS 2 738 2 617 Unbilled revenues and inventories 290 288 Trade accounts and notes receivable 997 917 Other receivables and prepayments 340 338 Marketable securities 9 244 Cash and cash equivalents 975 1 490 CURRENT ASSETS 2 611 3 277 TOTAL 5 349 5 894 ROIC2 19.3% 19.7% (CHF million) DEC 2016 DEC 20151 Share capital 8 8 Reserves 1 765 1 898 SHAREHOLDERS’ EQUITY 1 773 1 906 NON-CONTROLLING INTERESTS 80 75 Long-term loans1 1 719 1 723 Provisions and other liabilities 289 338 NON-CURRENT LIABILITIES 2 008 2 061 Accounts payable 641 526 Other creditors and accruals 846 832 Loans1 1 494 CURRENT LIABILITIES 1 488 1 852 LIABILITIES 3 496 3 913 TOTAL 5 349 5 894 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES NET DEBT (736) (482)
  • 26. REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW CURRENCY SECOND HALF 2016 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Digital Services  CONSUMER BENEFIT > A more secure internet
  • 27. 27© SGS SA 2017 ALL RIGHTS RESERVED 2016 CONDENSED CASH FLOW (CHF million) DEC 2016 DEC 2015 PROFIT FOR THE PERIOD 586 584 Non-cash items 560 541 (Increase)/decrease in working capital 75 160 Taxes paid (207) (223) CORE OPERATING CASH FLOW1 1 014 1 062 Pension funds special contribution - (103) CASH FLOW FROM OPERATING ACTIVITIES 1 014 959 Net (purchase) of fixed assets (276) (286) Net (acquisition) of businesses (172) (104) Decrease/(increase) in marketable securities and other 247 (235) CASH FLOW FROM INVESTING ACTIVITIES (201) (625) Dividends paid to equity holders of SGS SA (517) (522) Dividends paid to non-controlling interests (39) (34) Transaction with non-controlling interests (4) (2) Net cash received on treasury shares (161) (147) (Reimbursments)/Proceeds of corporate bonds (491) 549 Interest paid (58) (55) Net flows on interest rate swaps - 16 (Decrease)/increase in borrowings (3) (15) CASH FLOW FROM FINANCING ACTIVITIES (1 273) (210) Currency translation (55) 25 INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (515) 149 FREE CASH FLOW2 738 658 1. Before cash flows related to pension fund special contribution – 2. Cash flow from operating activities net of capital expenditures. FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017
  • 28. 28© SGS SA 2017 ALL RIGHTS RESERVED 2016 NET WORKING CAPITAL MOVEMENT AVERAGE 2010 – 2014 2015 2016 CHF  75 MIO CHF  160 MIO CHF  (66) MIO TOTAL 2015 – 2016 IMPROVEMENT CHF  235 MIO FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017
  • 29. 29© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 OPERATING CASH FLOW 1. Cash flow from operating activities less net Capex – 2. Operating cash flow / Adjusted EBITDA. 1 200 1 100 1 000 900 800 700 600 500 400 300 200 100 0 2012 67.6% 2013 75.8% 2014 74.4% 2015 80.5% 2016 84.6% 948798 912 959 1 014 Net CAPEX in CHF MIO Free cash flow1 in CHF MIO Operating cash flow in % of revenue 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 386 357 305 301 276 412 591 607 658 738 ADJ. CASH CONVERSION RATIO2
  • 30. 30© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 CAPITAL EXPENDITURE CAPEX BY REGION ANNUAL CAPEX CHF MIO 400 300 200 2011 20152012 20162013 2014 Capital Expenditure Depreciation and amortisation CHF  288 MIO CHF  288 MIO 4.0% GIS 15.0% TRP 6.8% EHS 12.2% IND 1.3% CBE 17.3% AFL 17.0% OGC 7.4% MIN 19.0% CRS CAPEX BY BUSINESS 33.9% Asia / Pacific 19.4% Americas 46.7% Europe / Africa / Middle East
  • 31. 31© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Net Capex. CASH SOURCES AND USES IN 2016 SOURCES USES CHF 1.0 BN CHF 1.1 BN ORGANIC CASH FLOW GENERATION COVERING 90% OF USES OPERATING CASH FLOW GENERATION GROWTH OPPORTUNITIES • Organic growth1 • M&A SHAREHOLDERS RETURNS • Dividends paid • Share buy-back programme CHF 0.4 BN CHF 0.7 BN
  • 32. REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW CURRENCY SECOND HALF 2016 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Digital Services  CONSUMER BENEFIT > A more secure internet
  • 33. 33© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 2016 FOREIGN CURRENCY REVENUES MAJOR CURRENCIES 26.6% OTHER 2.3% HKD 2.4% AUD 2.7% BRL 3.1% GBP 3.1% CLP 3.3% CAD 25.9% EUR 14.4% USD 12.8% CNY 3.4% TWD
  • 34. 34© SGS SA 2017 ALL RIGHTS RESERVED EUR USD CNY TWD CAD CLP GBP BRL AUD HKD 2016 2015 CHANGE FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 FOREIGN CURRENCY AVERAGE RATE CHANGE FY 2016 VERSUS FY 2015 RATE 4% 2% 0% (2)% (4)% (6)% (8)% (10)% 2.0% 2.3% (3.2)% 0.7% (1.4)% (1.3)% (9.2)% 1.1% (3.4)% 2.2% 1.0901 1.0691 2.0% 0.9849 0.9626 2.3% 0.1483 0.1532 (3.2)% 0.0305 0.0303 0.7% 0.7436 0.7545 (1.4)% 0.0015 0.0015 (1.3)% 1.3360 1.4719 (9.2)% 0.2838 0.2937 (3.4)% 0.7327 0.7244 1.1% 0.1269 0.1242 2.2%
  • 35. REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW CURRENCY SECOND HALF 2016 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Digital Services  CONSUMER BENEFIT > A more secure internet
  • 36. 36© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 H2 2016 FINANCIAL HIGHLIGHTS 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. (CHF million) 2016 H2 2015 H2 PRO-FORMA2 2015 H2 REVENUE 3 084 2 932 2 960 Change in % 5.2 4.2 ADJUSTED OPERATING INCOME1 508 497 505 Change in % 2.2 0.6 ADJUSTED OPERATING INCOME MARGIN1 16.5 17.0 17.1 OPERATING INCOME (EBIT) 422 480 489 Change in % (12.1) (13.7) OPERATING INCOME (EBIT) MARGIN 13.7 16.4 16.5 PROFIT FOR THE PERIOD 309 337 353 Change in % (8.1) (12.4) PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF SGS SA 289 320 335 Change in % (9.7) (13.7)
  • 37. 37© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 H2 2016 REVENUE GROWTH COMPOSITION REVENUE H2 2015 CHF MIO H2 2015 ORGANIC 2.2% ACQUISITIONS 1.6% DISPOSALS 0.0% CURRENCY IMPACT (7.6)% REVENUE H2 2016 (3.8)% 2 960 107 46 (1) (28) 3 084 1.6% 0.0%3.6% (1.0)% 4.2% Constant currency growth: 5.2%
  • 38. 38© SGS SA 2017 ALL RIGHTS RESERVED 4.0% FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 H2 2016 REVENUE GROWTH1 BY BUSINESS 1. Constant currency basis. AFL MIN OGC CRS CBE IND EHS TRP GIS TOTAL Organic Acquisitions Disposals 7.7% 3.6% 16.1% 3.6% 2.8% 1.2% (0.2)% (2.9)% 0.4% 2.9%3.9% 7.5% (4.8)% 4.4% 8.3% 11.7% 1.6% (0.1)% GROWTH 2016 2015 4.0% 3.7% (2.5)% 6.8% 7.5% 2.9% 20.5% 11.9% 11.7% 5.2% 10.4% (1.6)% (4.8)% 2.6% 8.4% 1.5% 11.0% 14.6% 15.5% 3.8%
  • 39. 39© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. H2 2016 ADJUSTED OPERATING MARGIN1 BY BUSINESS 30% 25% 20% 15% 10% 5% 0% AFL CRSMIN CBE TRPOGC IND GISEHS 18.9% 14.9% 12.0% 26.8% 17.3% 11.3% 12.6% 20.1% 23.5% 17.2% 15.6% 11.3% 26.6% 20.2% 9.3% 13.0% 16.1% 28.4% H2 20152 H2 2016
  • 40. 40© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 FINANCIAL SUMMARY 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Profit for the period / (Non current assets + Net Working Capital). ··Revenue growth of 6.0% of which 2.5% organic ··Increase in Adjusted Operating Income1 on a constant currency basis by 2.4% ··Investment of CHF 448 million in Capex and Acquisitions ··Operating cash flow of 1.0 billion ··Return on Invested Capital (ROIC2 ) of 19.3% ··Proposed dividend of CHF 70 
  • 41. HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX SGS SERVICE > Polymer Testing CONSUMER BENEFIT > More responsive carbon fibre products
  • 42. FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. AGRICULTURE, FOOD AND LIFE (AFL) (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 934.9 880.9 892.4 Change in % 6.1 4.8 ADJUSTED OPERATING INCOME¹ 147.2 144.0 146.8 Change in % 2.2 0.3 MARGIN %¹ 15.7 16.3 16.5 OVERVIEW ··Solid growth from Food, Life and Trade activities ··Strong testing services drove Food in Asia and high demand for certification ··Slow input market impacted Seed & Crop ··Double-digit growth in Life laboratories ··Strategic investment in Transparency One and AgFlow OUTLOOK ··Recent investments and strong demand for food safety will drive growth ··Strong organic growth expected in Life laboratories ··Acquisition of Unigeo along with new services will benefit Seed and Crop portfolio ··Trade activities to remain strong 42© SGS SA 2017 ALL RIGHTS RESERVED
  • 43. FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 MINERALS (MIN) 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. OVERVIEW ··Double-digit growth from high sample volumes in Geochem laboratories ··Energy performed well, particularly in Russia, Colombia and Vietnam ··Solid results in Trade services from steel and raw materials and fertilizer activities ··Reduced exploration spend impacted Metallurgy OUTLOOK ··Commodity prices expected to stabilise ··Increased interest to continue in on-site laboratories activities ··More opportunities expected for new mine and plant services ··Well positioned to benefit from expected market improvement (CHF million) 2016 2015 PRO-FORMA2 2015 REVENUE 635.0 618.9 632.8 Change in % 2.6 0.3 ADJUSTED OPERATING INCOME¹ 90.9 86.6 89.6 Change in % 5.0 1.5 MARGIN %¹ 14.3 14.0 14.2 43© SGS SA 2017 ALL RIGHTS RESERVED
  • 44. FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. OIL, GAS AND CHEMICALS (OGC) OVERVIEW ··Trade-related activities remained flat ··Solid results in Sample Management segment and Oil Condition Monitoring ··Plant and Terminal Operations (PTO) remained stable ··Upstream services continued to be impacted by market conditions OUTLOOK ··Oil and Gas market expected to stabilise ··Price volatility and increased trade volume to benefit Trade-related activities and PTO ··Non-Inspection-related testing to remain flat ··Upstream services to focus on production market (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 1 098.4 1 122.2 1 126.4 Change in % (2.1) (2.5) ADJUSTED OPERATING INCOME¹ 116.4 126.5 128.6 Change in % (8.0) (9.5) MARGIN %¹ 10.6 11.3 11.4 44© SGS SA 2017 ALL RIGHTS RESERVED
  • 45. FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 CONSUMER AND RETAIL (CRS) 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. OVERVIEW ··Solid results from Central and Eastern Europe and Asia ··Strong growth in Softlines and Hardlines ··Cosmetics, Personal Care and Household performs well in China, Germany and North America ··Robust performance in Electrical & Electronics despite challenges in Wireless testing market OUTLOOK ··Strong performance in most regions despite impact of Wireless activity ··Strong growth to continue in Softlines and Hardlines ··Significant growth in Restriction of Hazardous Substance testing (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 872.8 821.2 826.1 Change in % 6.3 5.7 ADJUSTED OPERATING INCOME¹ 223.6 212.0 215.7 Change in % 5.5 3.7 MARGIN %¹ 25.6 25.8 26.1 45© SGS SA 2017 ALL RIGHTS RESERVED
  • 46. CERTIFICATION AND BUSINESS ENHANCEMENT (CBE) FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. OVERVIEW ··Strong organic growth driven by all activities ··High demand for ISO 9001:2015 and ISO 14001 standards ··Solid growth in industry-specific technical training and new on-line courses ··Double-digit growth in performance management ··Germany returns to growth and profitability OUTLOOK ··Performance to remain healthy across portfolio ··Training activities to deliver double digits ··Management System Certification to get boost from new ISO 2015 standard (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 324.1 297.0 298.6 Change in % 9.1 8.5 ADJUSTED OPERATING INCOME¹ 57.5 48.2 48.7 Change in % 19.3 18.1 MARGIN %¹ 17.7 16.2 16.3 46© SGS SA 2017 ALL RIGHTS RESERVED
  • 47. INDUSTRIAL (IND) FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. OVERVIEW ··Acquisitive growth drives revenues offsetting weak organic performance ··Double-digit growth in laboratory testing with added capabilities in construction and calibration testing ··Low capital investment and spending affected Energy and Construction activities impacting organic growth OUTLOOK ··Energy sector to remain challenging ··Low investment and high competition expected in Infrastructure and Construction ··Manufacturing sector to grow in single digits ··Laboratory services will maintain single-digit growth trend, both organically and acquisitively (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 890.9 844.2 852.4 Change in % 5.5 4.5 ADJUSTED OPERATING INCOME¹ 83.6 93.9 95.5 Change in % (11.0) (12.5) MARGIN %¹ 9.4 11.1 11.2 47© SGS SA 2017 ALL RIGHTS RESERVED
  • 48. ENVIRONMENT, HEALTH AND SAFETY (EHS) FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. OVERVIEW ··Strong results in Europe from high volume/high margin laboratory contracts ··Acquisitions strengthen presence and global service portfolio in the USA ··High single-digit growth in South America with strong demand for dioxins testing ··Margin pressure continued in Australia OUTLOOK ··Continued focus on Health & Safety and Testing services ··New regulations to accelerate Marine services revenue ··Optimisation of Accutest network will improve margins ··New opportunities for drones in field services (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 464.3 375.7 375.6 Change in % 23.6 23.6 ADJUSTED OPERATING INCOME¹ 54.9 48.0 48.0 Change in % 14.4 14.4 MARGIN %¹ 11.8 12.8 12.8 48© SGS SA 2017 ALL RIGHTS RESERVED
  • 49. TRANSPORTATION (TRP) FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis – 3. Restated figures due to the change in business structure. OVERVIEW ··Solid performance in Regulated services particularly in Vehicle Inspection services ··Strong performance in commercial inspection activities ··Growth in testing services with solid results from China, France, India and USA ··Successful replication of services from acquisitions OUTLOOK ··Tightening of exhaust emissions regulations will drive growth ··Shift to connectivity and digitalisation will support solid supply chain solutions growth ··Positive outlook for Regulated services in Africa and South America ··Focus on acquisitions in the Aerospace sector (CHF million) 2016 2015 PRO-FORMA2, 3 20153 REVENUE 489.8 433.7 447.6 Change in % 12.9 9.4 ADJUSTED OPERATING INCOME¹ 78.5 80.4 82.1 Change in % (2.4) (4.4) MARGIN %¹ 16.0 18.5 18.3 49© SGS SA 2017 ALL RIGHTS RESERVED
  • 50. GOVERNMENTS AND INSTITUTIONS (GIS) FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 1. Before amortisation of acquisition intangibles, restructuring and other non-recurring items – 2. Constant currency basis. OVERVIEW ··Growth in PCA with two new programmes in Cameroon and Gabon ··Enhanced e-Gov programme deployed in Ghana ··100% scanning programme using SGS Dtect® deployed in Cameroon ··High import volumes drove Single Window solutions performance OUTLOOK ··Improved cost control measures and modernisation of inspection services ··Reinforcement of centralised solutions ··Extension of Single Window in Ghana ··Good prospects for SGS Dtect® ··New innovative services: SGS e-waste monitoring solutions, SGS e-tax solution, SGS land management solution (CHF million) 2016 2015 PRO-FORMA2 2015 REVENUE 274.7 249.8 260.0 Change in % 10.0 5.7 ADJUSTED OPERATING INCOME¹ 66.6 58.0 62.3 Change in % 14.8 6.9 MARGIN %¹ 24.2 23.2 24.0 50© SGS SA 2017 ALL RIGHTS RESERVED
  • 51. HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX CONSUMER BENEFIT > Trusting that purchases made online are up to scratch SGS SERVICE > E-Commerce Quality Control Service
  • 52. 52© SGS SA 2017 ALL RIGHTS RESERVED SOLID ORGANIC REVENUE GROWTH HIGHER ADJUSTED OPERATING INCOME ROBUST CASH FLOW FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 GUIDANCE 20171 1. At stable market conditions.
  • 53. 53© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 OUTLOOK 2020 ··Mid single digit organic growth on average with improvement over the period supported by the new focused structure and new strategic initiatives ··Accelerating M&A activities with acquired revenue over the period in the range of CHF 1 billion ··Adjusted Operating Income Margin of at least 18% by end of the period supported by the new focused structure, new strategic and efficiency improvement initiatives ··Strong cash conversion ··Solid returns on invested capital ··Solid dividend distribution, in line with improvement in net earnings
  • 54. 54© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 UPCOMING EVENT DATES ANNUAL GENERAL MEETING OF SHAREHOLDERS Monday, 21 March 2017 Geneva, Switzerland 2017 HALF YEAR RESULTS Monday, 17 July 2017 INVESTOR DAYS (IN ASIA) Thursday and Friday 26 and 27 October 2016 DIVIDEND PAYMENT DATES Ex-Date: 23 March 2017 Record data: 24 March 2017 Payment date: 27 March 2017
  • 55. 55© SGS SA 2017 ALL RIGHTS RESERVED FULL-YEAR RESULTS PRESENTATION 23 JANUARY 2017 SGS SA CORPORATE OFFICE 1 place des Alpes P.O. Box 2152 CH – 1211 Geneva 1 t +41 (0)22 739 91 11 f +41 (0)22 739 98 86 e sgs.investor.relations@sgs.com www.sgs.com CORPORATE DEVELOPMENT, COMMUNICATIONS & INVESTOR RELATIONS Jean-Luc de Buman SGS SA 1 place des Alpes P.O. Box 2152 CH – 1211 Geneva 1 t +41 (0)22 739 93 31 f +41 (0)22 739 92 00 www.sgs.com STOCK EXCHANGE TRADING SIX Swiss Exchange COMMON STOCK SYMBOLS Bloomberg: Registered Share: SGSN.VX Reuters: Registered Share: SGSN.VX Telekurs: Registered Share: SGSN ISIN: Registered Share: CH0002497458 Swiss security number: 249745 STOCK EXCHANGE LISTING SIX Swiss Exchange, SGSN INVESTOR RELATIONS INFORMATION