SGS is a leading inspection, verification, testing and certification company established in 1878. It aims to be the most competitive and productive service organization in the world with core competencies in inspection, verification, testing and certification. SGS has over 80,000 employees operating over 1,650 offices and laboratories worldwide. It provides services across various industries including agriculture, automotive, aviation, construction, chemicals, consumer goods, energy, finance, industrial manufacturing, life sciences, logistics, mining, oil and gas, public sector. In 2014, SGS reported total revenue of CHF 5.9 billion, net profit of CHF 629 million, and proposed a dividend of CHF 68 per share.
2. INTRODUCTION
OUR VISION
We aim to be the most competitive and
the most productive service organisation
in the world. Our core competencies
in inspection, verification, testing and
certification are being continuously
improved to be best-in-class. They are
at the heart of what we are. Our chosen
markets will be solely determined by our
ability to be the most competitive and
to consistently deliver unequalled service
to our customers all over the world.
OUR VALUES
We seek to be recognised by our
passion, integrity, entrepreneurialism
and our innovative spirit, as we
continually strive to fulfil our vision.
These values guide us in all that we
do and are the bedrock upon which
our organisation is built.
OUR HISTORY
Established in 1878, SGS
transformed grain trading in Europe
by offering innovative agricultural
inspection services.
From those early beginnings, we
steadily grew in size and scope as
our agricultural inspection services
spread around the world.
During the mid 20th century, we
began to diversify and started offering
inspection, testing and verification
services across a variety of sectors,
including industrial, minerals, oil, gas,
and chemicals.
In 1981, SGS was listed on the Swiss
Stock Exchange and forged an
unrivalled reputation as the industry
leader in finding solutions to the
complex challenges faced every day
by organisations.
Our consultancy, outsourcing and
training services complement our core
inspection, verification, testing and
certification services in delivering these
solutions across all industries.
Through our unique global network
we deliver independent results tailored
to the precise needs of each industry
or sector. Our customers trust in our
expertise, experience and resources to
support them in achieving outstanding
performance in everything they do.
Today, our focus is on innovative ways
to deliver business benefits. This
enables us to help our customers
improve quality, safety, efficiency,
productivity and speed to market,
while reducing risk and building trust
in sustainable operations.
SGS is the world’s leading inspection, verification,
testing and certification company. SGS is
recognised as the global benchmark for quality
and integrity. With more than 80,000 employees,
SGS operates a network of over 1,650 offices and
laboratories around the world.
We provide competitive advantage, drive
sustainability and deliver trust. At SGS, we are
continually pushing ourselves to deliver innovative
services and solutions that help our customers
move their businesses forward.
3. THE BENEFITS WE DELIVER
SAFETY
We help organisations develop effective health and safety systems to protect
employees, generate consumer confidence and enhance trust in business
operations. We support our customers in adhering to best practices and complying
with local, national and international regulations.
QUALITY
Our customers rely on our independent third party inspection, testing and auditing
solutions to ensure products, services and processes comply with the latest quality
standards. Our global network of state-of-the-art facilities provides information to
certify and verify quality worldwide.
TRUST
Our global reputation for independence and integrity enables us to build trust
wherever needed. We provide transparent and unbiased inspection, testing,
verification and certification solutions so our customers can give assurance in
their products, processes, systems and services.
SUSTAINABILITY
We help our customers take ownership of building a more responsible and sustainable
future. We encourage environmental responsibility and reduce the risk of corruption
in our customers’ projects. Our services assist in developing sustainable facilities and
production, as well as better working and social environments.
PRODUCTIVITY
Our training and outsourcing solutions ensure productivity keeps pace with
developments in our customers’ organisations. In the short-term, we offer the
knowledge of our world-class productivity experts. In the long-term, we deliver
focused training to develop specialist skills in our customers’ existing personnel.
EFFICIENCY
Our tailored business solutions help our customers implement processes and
systems that make business operations faster, simpler and more efficient. We deliver
unrivalled efficiency results from our local experts, who draw on the global experience
of the entire SGS network.
REDUCED RISK
We provide our customers with independent and impartial services that enable them
to identify, manage and reduce risk. Our experts deliver risk management solutions,
drawing on our testing and inspection capabilities to verify risk prevention measures
are in place. We assist with compliance to international risk management standards
across a wide range of industries.
SPEED TO MARKET
Compliance with the requirements of target markets is key to increasing speed
to market. Our consultancy, testing and certification services help our customers
overcome the complex challenges of understanding and meeting market demands
anywhere in the world, whatever the industry or sector.
4. SGS BY INDUSTRY
AGRICULTURE AND FOOD Ensuring safe, sustainable and high quality products
Consumers want assurance of safety and quality at every stage of the food
production process. Our services build trust, reduce risk and maintain efficiency
across diverse agriculture and food supply chains. We offer solutions for agrochemicals,
seed, biofuels, fertilisers, food and forestry. Our services protect the integrity of
our customers’ brands by assessing quality, adding value and securing safe and
sustainable global supply chains. From primary production to the point of processing
or custody transfer we assist with legislation compliance, correct storage, shipping,
packing and distribution as well as import and export product inspection.
AUTOMOTIVE Driving performance and safety worldwide
For governments, manufacturers, traders, financial institutions and insurance
companies, improving performance and reducing risk in the automotive industry
is essential. We guide build quality improvements and verify that efficiency is
maximised. As a result, reliable vehicles are consistently delivered. We support
our customers in achieving shorter delivery times with reduced costs. Our vehicle
inspection services increase automotive safety and minimise environmental impact.
We ensure brand guidelines are met throughout aftermarket and distribution
operations by providing dealership and workshop audits, along with logistics and
supply chain security services. Our global network of offices, laboratories and vehicle
testing centres offers a truly unique and independent proposition.
AVIATION Enhancing safety, quality, reliability and trust
We offer a comprehensive range of services to the aviation and aerospace industries.
Our expert aviation consultancy and risk services provide airline safety ratings and
confidential insight into root causes of error. Our leading expertise in quality and supply
chain assurance means customers can trust in the quality of aerospace manufacturing
and infrastructure. Our project management, inspection and materials services keep
airport construction on time and in budget. We provide professional trainings and audits
to ensure ground operations for fuelling, cargo handling and maintenance meet or exceed
best practice. From airport hygiene to airline food safety, passenger experience to
check-in gate, we are continually delivering to the highest standards of safety and quality.
CONSTRUCTION Ensuring safety and performance where we live
Safe, efficient and trusted processes are essential when constructing buildings
or infrastructure. Our construction industry experience means our customers can
minimise environmental impact and public inconvenience. We support our customers
in implementing effective scheduling, budgeting, site safety and logistics, plus assist
in sourcing quality materials and personnel. We conduct studies in construction
feasibility, risk assessment and management. Our services ensure quality in global
supply chains by performing chemical and physical testing of materials. Our asset
management system tracks machines and equipment, while our inspection services
provide facility, waste and energy audits.
Our aim is to surpass customer expectations as the world’s leading
inspection, verification, testing and certification company.
CHEMICAL Innovation and efficiency in everything from perfumes to paints
The chemicals industry converts raw materials into literally tens of thousands of
consumer products every day. Industrial chemicals companies trust our services
to reduce risk and eliminate potential health hazards. We ensure quality in chemical
components and the safety and compliance of finished products. Our consultancy
services deliver turnkey laboratory design, commissioning and operations assistance
in dealing with intricate equipment or logistics. We support our customers in
improving productivity and efficiency through our asset integrity management services,
optimisation programmes and project life cycle services.
5. CONSUMER GOODS AND RETAIL Generating trust throughout the supply chain
Our services enable manufacturers, importers, exporters and retailers to gain a
competitive edge. We ensure trusted, ethical and environmentally conscious goods
such as food, electronics, textiles, toys, footwear and housewares reach consumers.
Our laboratories conduct material and functionality testing to verify and certify that
products perform exactly as our customers claim. We inspect processes at every
stage of production and undertake retail store audits to ensure our customers’ brands
are represented correctly. We help our customers develop products, processes and
supply chains that consumers trust every day.
ENERGY Powering processes from renewables to conventional energy
Across all operations the energy sector has to meet regulations, consider safety
and limit environmental impact. We support the energy sector with a comprehensive
range of independent inspections and audits across the petroleum, gas, electrical
power, coal and renewable energy industries. We reduce risk in all operations, from
exploration to decommissioning for the oil, gas and coal industries. In renewables,
we consult on sustainability across hydroelectric, wind and solar power. Our expertise
maximises productivity and increases efficiency in sales and distribution processes.
Through our solutions we help the energy sector innovate to find tomorrow’s energy, today.
FINANCE Delivering expert knowledge for the full financial picture
Trust in the viability of an investment or lending decision is critical before investing
or borrowing on a new project, acquisition or venture. Our due diligence services
reduce risk in a project’s development phase, while in the implementation phase we
provide comprehensive monitoring, technical and financial risk management services.
We provide assurance through guarantee, collateral and trade documentation
services. With knowledge of national and international standards and legislation we
can accurately evaluate our customers’ lending options and support their project
finance decisions.
INDUSTRIAL MANUFACTURING Making manufacturing more productive and profitable
Our expertise allows manufacturers to improve productivity, follow best practices
and streamline operational processes or logistics. Industrial manufacturers,
from pharmaceuticals to farm machinery and aerospace to automotive, trust in
our independent testing and conformity services. Our advice on the fabrication of
components along with our finished product assessments enable our customers to
achieve performance standards throughout manufacturing. We support manufacturers
in meeting all national and international quality, health and safety legislation, at the
same time as providing advice on minimising environmental impact.
LIFE SCIENCES Protecting safety and costs in product development
In the pharmaceuticals, biopharmaceuticals and medical devices industries products
must conform to all national and international regulations, as well as industry best
practices. Our services enable high quality, safe and compliant products to reach
the market in the shortest possible timescales. We provide vital support and
expertise for medicines and medical devices throughout every stage of development,
testing, production and distribution. With the largest network of contract analytical
laboratories in the world and state-of-the-art clinical trials facilities, our customers
trust in our expert knowledge to support them with reliable results.
6. SGS BY INDUSTRY
LOGISTICS Streamlining operations and improving efficiencies
We help logistics service providers make the process of freight forwarding by sea, rail
or road as productive and efficient as possible. Our customers look to us for innovative
solutions for plant and terminal operations. We provide international customs data
exchange and we support cargo, vessel and import controls with interconnected
processes. Our services assist import and export controls, terminal manning and
weighbridge management services. We streamline our customers’ operations through
our audit, certification and training services in order to improve efficiencies.
MINING Improving speed-to-market, optimising recoveries
We act as a strategic partner in the mining industry, providing testing, technology
and trade solutions. Our services promote growth and deliver efficiencies across
exploration, production, industrial applications, decommissioning and closure. We offer
technical advice in steel manufacturing processes and act as a strategic partner in coal
and coke trading. We also help to maximise profits in precious or base metal mining
or extraction. Our consultancy services deliver transparent and unbiased support in
new technologies and provide accurate data to track the progress of projects.
OIL AND GAS Enriching quality and value in exploration, extraction and distribution
Access to independent expertise in both the upstream and downstream sectors
is key to maximising the value chain in this sector. Our customers in the oil and gas
industry trust our dedication to quality and safety. We provide tailored solutions for
exploring, extracting, refining, transporting and marketing oil, oil sands, gas, or other
hydrocarbons. Our specialist advice and knowledge supports upstream activities
such as applied mineralogy, metering, measuring and hydrocarbons allocation.
Our downstream services support distribution and retail as well as the design
and execution of optimisation processes and global trade inspection.
SGS SA
1 place des Alpes
P.O. Box 2152
1211 Geneva 1
Switzerland
AWARDS AND RECOGNITIONS
SXI Switzerland
Sustainability 25 Index®
PUBLIC SECTOR Facilitating international trade and sustainable development
Public sector organisations require solutions designed to work in harmony with the
processes and policies they already have in place. Our unrivalled border control
services for scanner installation, transit monitoring and risk profiling support the public
sector in reducing risk worldwide. Our e-government solutions enhance international
trade and revenue processing. We improve public infrastructure through independent
road safety services that increase the efficiency of transportation systems. Our
customers trust in our knowledge of quality, health, safety and environment issues
to comply with complex regulations. We improve quality and maximise productivity
across the public sector.
Contact SGS Investor
and Media Relations:
www.sgs.com/IR
Careers at SGS:
www.sgs.com/careers
CONTACT US
SPI Select Dividend 20
Index SMI Indices®
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t +41 (0)22 739 91 11
www.sgs.com/contact
7. FINANCIAL HIGHLIGHTS FROM 2014
1. Constant currency basis.
REVENUE BY
REGION
Asia Pacific
29.6 %
Europe / Africa /
Middle East
46.0 %
Americas
24.4 %
BUSINESS REVIEW 2014
REVENUE BY
BUSINESS
Agricultural Services
6.6 %
Governments and
Institutions Services
4.2 %
Minerals Services
11.9 %
Automotive Services
5.2 %
Oil, Gas and
Chemicals Services
20.4 %
Environmental
Services
5.8 %
Life Science Services
3.6 %
Industrial Services
16.6 %
Consumer
Testing Services
18.6 %
Systems and
Services Certification
7.1 %
5.9total revenue in CHF billion
629
net profit for the year
in CHF million
68proposed dividend
per share in CHF
5.4total revenue up in % 1
10acquisitions