2021 GROUP PROFILE

ENGLISH
We are SGS
We are recognized as the global benchmark for quality and integrity. Our 93,000 employees operate
a network of 2,600 offices and laboratories, working together to enable a better, safer and more
interconnected world. Wherever you are, whatever your industry, our experts worldwide provide
specialized solutions to make your business faster, simpler and more efficient.

OUR PURPOSE OUR VALUE TO SOCIETY OUR HISTORY

Our purpose is to enable a better, safer Through our integrated leadership Established in 1878, SGS transformed
and more interconnected world. approach, we strive to become an grain trading in Europe by offering
How do we do this? increasingly sustainable company, innovative agricultural inspection services.
maximizing the positive impact we have. From those early beginnings, we
We enable a better world by helping
We add more than just financial value to steadily grew in size and scope as our
businesses everywhere to work
society. All our stakeholders (employees agricultural inspection services spread
efficiently, to deliver with quality, and to
and suppliers, investors, customers, around the world.
trade with integrity and trust.
governments and industries, consumers,
We enable a safer world by ensuring During the mid-20th century, we
and communities and society) are
that your car is safe to drive, that the began to diversify and started offering
the ultimate beneficiaries. In order to
environment you work in is secure and inspection, testing and verification
measure our success, we are developing
clean, and that the food you eat is safe. services across a variety of sectors,
an innovative impact valuation model to
including industrial, minerals, oil, gas,
We enable a more interconnected world quantify our value to society.
and chemicals.
by, for example, helping new technology
to reach consumers quickly and In 1981, SGS was listed on the Swiss
affordably, by ensuring the security of IT Stock Exchange and forged an unrivaled
systems and data, and by using AI and reputation as the industry leader
the Internet of Things to help develop in finding solutions to the complex
smart cities. challenges faced every day
“We are committed to by organizations.
delivering sustainable Today, we provide worldwide,
value to society. Ensuring independent services that make a
difference to people’s lives. Our training
that our supply chain and and consultancy services complement
direct operations have a our core business of testing, inspection
positive impact beyond the and certification which are delivered
across all industries.
traditional financial benefits Through our unique global network,
is an integral part of our we deliver independent results tailored
success and leadership.” to the precise needs of each industry
or sector. Our customers trust in our
FRANKIE NG expertise, experience and resources to
CHIEF EXECUTIVE OFFICER support them in achieving outstanding
performance in everything they do.
Our continued focus on innovative ways
to deliver business benefits enables us
to help our customers improve quality,
safety, efficiency, productivity and
speed to market while reducing risk and
building trust in sustainable operations.
The benefits we deliver
QUALITY SAFETY REDUCED RISK
Our customers rely on our independent We help organizations develop effective We provide our customers with
third-party inspection, testing and health and safety systems to protect independent and impartial services that
auditing solutions to ensure products, employees, generate consumer enable them to identify, manage and
services and processes comply with confidence and enhance trust in reduce risk. Our experts deliver risk
the latest quality standards. Our global business operations. We support our management solutions, drawing on our
network of state-of-the-art facilities customers in adhering to best practices testing and inspection capabilities, to
provides information to certify and verify and complying with local, national and verify that risk prevention measures are in
quality worldwide. international regulations. place. We assist with the compliance of
international risk management standards
across a wide range of industries.

PRODUCTIVITY EFFICIENCY SPEED TO MARKET

Our training and outsourcing solutions Our tailored business solutions help our Compliance with the requirements of
ensure productivity keeps pace with customers implement processes and target markets is key to increasing speed
developments in our customers’ systems that make business operations to market. Our consultancy, testing and
organizations. In the short term, faster, simpler and more efficient. We certification services help our customers
we offer the knowledge of our deliver unrivaled efficiency results from overcome the complex challenges of
world-class productivity experts. our local experts, who draw on the global understanding and meeting market
In the long term, we deliver focused experience of the entire SGS network. demands anywhere in the world,
training to develop specialist skills in whatever the industry or sector.
our customers’ workforce.

TRUST SUSTAINABILITY
Our global reputation for independence We help our customers take ownership
and integrity enables us to build of building a more responsible and
trust wherever needed. We provide sustainable future. We encourage
transparent and unbiased inspection, environmental responsibility and
testing, verification and certification reduce the risk of corruption in our
solutions so our customers can give customers’ projects. Our services assist
assurance in their products, processes, in developing sustainable facilities and
systems and services. production, as well as better working
and social environments.
Our Focus Areas
The SGS focus areas are strategically aligned with global megatrends affecting society today.
Each focus area develops and maintains world-class expertise to support the evolving needs of
our customers. Due to our capabilities we are able to provide solutions to the challenges they
face across the globe.

CONNECTIVITY & PRODUCTS Our innovative solutions help you to We provide the world’s most
Enabling better, safer products and deliver safe, accessible, high-quality comprehensive range of integrated
services i​n a more connected world. products and services in stores and inspection, testing, certification and
online, ensure secure connectivity, advisory services, powered by the latest
As the world becomes more connected,
reduce risk, and build consumer trust. technology and digital tools. Our global
brands, manufacturers, retailers and
network of experts helps you to meet
governments must ensure the safety, HEALTH & NUTRITION increasingly complex regulations and
quality and regulatory conformity of
Enabling a better quality of life by standards in the markets you operate in.
their products and services. In addition,
assuring the quality, safety and Our services enable you to move
the growth of e-commerce, and the
sustainability of the food we eat and quickly and safely through the product
emergence of new technologies, such
healthcare products we use. development cycle, ensuring efficiency,
as 5G, Internet of Things and Artificial
Intelligence, brings the challenge The health, wellness and nutrition compliance, productivity and innovation
of more accessible, yet industries are converging, responding throughout the supply chain. This helps
secure, connectivity. to consumer demands for healthier you to protect your brand and build
lifestyles and wellbeing. As a result, consumer trust and loyalty.
We provide the world’s most
there is an increased focus on the
comprehensive range of inspection,
quality, safety, sustainability, authenticity
testing, certification and advisory
and efficacy of food, healthcare and
services, powered by leading technology
wellness products.
and digital tools. Our global network of
experts supports you at every stage –
from design, production and regulatory
compliance to the import and export
of goods.
INDUSTRIES & ENVIRONMENT Our global network of experts and We provide the world’s most
Enabling safer, more sustainable and dedicated laboratories provide essential comprehensive range of certification
environmentally friendly infrastructure, market intelligence and metallurgy, and business enhancement solutions,
transportation and industries. consulting and logistics services to help powered by the latest technology and
you reduce risk, ensure traceability, and digital tools. Our global network of
As your organization transitions towards
trade with integrity and trust. specialists provides the knowledge and
sustainable forms of energy and growing
Our solutions enable you to become expertise to help you comply with local
environmental responsibilities, you
more environmentally responsible and and international standards, and ensure
need to bridge the gap between current
ensure compliance and innovation your people have the skills, training and
business practices and meeting the
throughout the supply chain, while professional development to help your
global requirements for a better future.
enhancing productivity, safety, quality business thrive.
We provide the world’s most
and sustainability. Our innovative solutions enable you
comprehensive range of integrated
to manage risk across supply chains
inspection, testing, certification and DIGITAL & INNOVATION and deliver operational efficiency,
advisory services, powered by the latest
Enabling safer, fairer and more secure cost savings and sustainability, while
technology and digital tools. Our
access to the digital environment. increasing your value to society.
global network of experts helps you
to navigate a wide range of new In the drive towards digital
SUSTAINABILLITY
standards, regulations and transformation, organizations are
exploring innovative new technologies Enabling your organization to become
corporate responsibilities.
that will help them adapt to a new more sustainable, safe and efficient.
Our innovative solutions enable you to
market reality, where customers Organizations of all sizes face a growing
ensure the integrity, safety and reliability
demand relevant, secure content on any social and regulatory focus on climate,
of your activities, equipment and
device, anytime, anywhere. natural resources, health and wellness,
operations, while helping you take more
We provide the world’s most and responsible consumption. As
sustainable approaches to infrastructure,
comprehensive range of integrated a result, an active commitment to
transportation and business operations.
inspection, testing, certification and sustainability is expected to be at the
This helps you to protect workers and
advisory services, powered by the latest center of your organization’s value
the environment, generate customer
technology and digital tools. Our global proposition and integrated into
confidence, enhance brand reputation,
network of digital innovation centers all operational and financial
manage risk and increase
helps you to understand and harness the business models.
business efficiency.
latest trends in cybersecurity, Internet of ​​​​​​​We provide the world’s most
NATURAL RESOURCES Things and eCommerce. comprehensive range of inspection,
Enabling the sustainable management Our innovate solutions enable you to testing, certification and consulting
and efficient use of natural resources. identify and validate new innovations, services, powered by the latest
products, services and business models technology and digital tools. Aligned
Natural resources provide the
to build consumer trust and operate with the UN Sustainable Development
essential building blocks of economic
more efficiently and securely. Goals (SDGs) and Principles for
development that are pivotal to everyday
Responsible Investment, our end-to-
life. The agriculture, oil, gas and minerals
KNOWLEDGE end sustainability solutions help you to
sectors are evolving rapidly, with an
Enabling sustainable growth by redefine your sustainability journey.
increased focus on sustainability,
changing market demands, and enhancing knowledge, skills Our innovative services enable you to
environmental, social and corporate and processes. implement more efficient processes,
governance (ESG).​​​​​​​ In an increasingly globalized economy, address risks and stakeholder concerns,
organizations must keep up to date with and accomplish your sustainability goals.
We provide the world’s most
comprehensive range of integrated complex regulatory obligations and best
inspection, testing, certification and practices to reduce legal, financial and
advisory services, powered by the latest reputational risks.
technology and digital tools.
2020 financial highlights
REVENUE REVENUE BY REGION
6.1

CHF 5.6 BN 44.8%

5.6

Europe / Africa /
-8.8%1 2020 2019
Middle East
-6.5% organic*

ADJUSTED OPERATING INCOME*

978

CHF 900 MIO

900

-8.0%1
19.7%
2020 2019

35.5%
Americas

ADJUSTED OPERATING INCOME MARGIN*

Asia Pacific

16.1%
16.1 16.1

+0.2pp1,3 2020 2019

REVENUE BY DIVISION

10.1% 33.4%
KN I&E
FREE CASH FLOW*
673

CHF 758 MIO

758

+12.6% 2020 2019 13.4%

H&N

RETURN ON INVESTED CAPITAL 2,*

20% 23.1%

16.5%
25.2
20.9 C&P NR
16.5

-8.7pp3 2020 2019

1. Constant currency (CCY)*

2. 2020 ROIC at 20.9% when adjusted from SYNLAB Analytics & Services (A&S) acquisition completed on 31 December 2020
3. Percentage points
* Alternative Performance Measures (APM), refer to the “2020 Full Year APM” document
BUSINESS PRINCIPLES SUSTAINABILITY ACHIEVEMENTS

SGS’ Business Principles

are the cornerstone on
which all of our activity rests.
SGS received a rating of AAA in the For the seventh consecutive year, we
They are held to be Morgan Stanley Capital International’s received the Gold Class award in SAM’s
fundamental, overarching (MSCI) Environment Social Sustainability Yearbook for our excellent
Governance assessment for 2020. sustainability performance.
beliefs and behaviors that
guide our decisions and
allow us to embody the SGS
brand in everything we do.

SGS was rated by Sustainalytics as We rank first in the Professional

“low risk” of experiencing material Services industry in 2020 Corporate
financial impacts from ESG factors Sustainability Assessment.
for 2020.
INTEGRITY

2021

RESPECT
We received a Platinum Rating award We were awarded an A- score on the
from EcoVadis and were placed in the CDP 2020 Assessment. SGS maintained
top 1% of the evaluated companies. its status as a carbon neutral company
since 2014.
HEALTH, SAFETY &
ENVIRONMENT

SGS has been rated as PRIME by ISS We were included in the FTSE4Good
QUALITY AND ESG Corporate Rating for its excellence Index for the third time.
PROFESSIONALISM in management of environmental, social
and governance aspects.

OUR VALUE TO SOCIETY

LEADERSHIP CHF 6579MIO* CARBON NEUTRAL

Ensuring we make better decisions, SGS maintained its status as a carbon
for our business and society. neutral company
*From our direct operations and supply
chain activities in 2019
SUSTAINABILITY
Find out more about Sustainability at SGS
http://www.sgs.com/en/our-company/corporate-sustainability/sustainability-at-sgs

Contact us
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© SGS Société Générale de Surveillance SA – 2021 – All rights reserved - SGS is a registered trademark of SGS Société Générale de Surveillance SA

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