SGS Geological Services · SIX:SGSN
SGS Geological Services — SGS — Shareholder Meeting (March 2024)
26 slides from SGS Geological Services's shareholder meeting presentation, Mar 26, 2024
Slide 1: Assemblée Générale Ordinaire
Assemblée Générale Ordinaire 26 March 2024, Geneva
Slide 2: Calvin Grieder, Chairman
Speaker Calvin Grieder Chairman 2 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillance SA. (2024) All rights reserved.
Slide 3: Frankie NG, Departing CEO
Speaker Frankie NG Departing CEO 3 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillance SA. (2024) All rights reserved.
Slide 4: 2023 Business Highlights
2023 Business Highlights Laboratory technicians, Health & Nutrition, Spain 4 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillance SA. (2024) All rights reserved.
Slide 5: Strong organic sales growth, margin impacted by FX
2023 highlights Strong organic sales growth, margin impacted by FX Sales / Organic growth AOI / AOI margin on sales CHF 6 622 million CHF 971 million +8.1% 14.7% Free cash flow / Change vs 2022 Earnings Per Share CHF 604 million CHF 3.00 +25.6% 1 Please refer to Alternative Performance Measures in t
Slide 6: All regions growing above their GDP growth
Regional performance All regions growing above their GDP growth 2023 sales growth constant currency Europe 2 350 5.1% 4.9% Asia Pacific 2 279 8.3% 8.3% North America 816 9.6% 9.8% Latin America 590 12.8% 13.0% Africa & Middle East 587 13.3% 13.3% TOTAL GROUP 6 622 8.1% 8.0% Sales, CHF million Organi
Slide 7: Strong growth driven by all business lines
Business lines performance Strong growth driven by all business lines 2023 sales 2023 sales growth % Group constant currency 33% Industries & Environment -0.8% 9.5% 0.3% 9.0% Natural 24% 9.6% 9.6% Testing & Resources Inspection 19% Connectivity & Products -0.6% 4.7% 0.1% 4.2% 13% Health & Nutrition
Slide 8: Strong growth driven by all business lines
2023 highlights Strong growth driven by all business lines Industries Natural Connectivity & Environment Resources & Products Strong focus on sustainability Reinforced position in minerals Prime position in growing cybersecurity Leading expertise in emerging Focus on consulting, energy transition ma
Slide 9: Consolidating leadership
2023 highlights Consolidating leadership Natural Connectivity Business Health Invest to consolidate Resources & Products Assurance & Nutrition No. 1 No. 1 (prev. Knowledge) Sales leadership No. 1 > CHF 1 billion ~90% 20% sales 30% lab sales > 50% FAIR1 > 50% applicable Become the most delivered by e
Slide 10: Driving additional returns through portfolio management
Acquisitions and disposals Driving additional returns through portfolio management Acquisitions Disposals Leansis Maine Pointe Nutrasource Automotive Asset Powertrain Testing Crop Science (Acquisition of (Acquisition of Business line: Assessment and Operations Operations the remaining the remaining
Slide 11: Leading the way in corporate sustainability
Corporate sustainability Leading the way in corporate sustainability A decade featuring at the top Highest rating for the third Top 5% of over 100,000 companies First TIC company to receive of the DJSI World and consecutive year in the MSCI recognized by Ecovadis approval for our 1.5ºC and Europe in
Slide 12: Géraldine Picaud, CEO
Speaker Géraldine Picaud CEO 12 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillance SA. (2024) All rights reserved.
Slide 13: Technical Division Manager, Health & Nutrition, France
Technical Division Manager, Health & Nutrition, France 13 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillance SA. (2024) All rights reserved.
Slide 14: Four megatrends driving market demand
Attractive TIC industry Four megatrends driving market demand Powerful Innovation in Near-shoring of Increasing sustainability digital capabilities supply chains regulation & transition & new technologies public awareness Higher demand from Strong growth driven New opportunities from Structural expa
Slide 15: Addressable market growth consistently exceeding GDP
Attractive TIC industry Addressable market growth consistently exceeding GDP Sources: TIC council, ISO association reports 15 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillance SA. (2024) All rights reserved.
Slide 16: Demand driven by regional market dynamics
Attractive TIC industry Demand driven by regional market dynamics Key growth drivers Key growth drivers Digital/Tech Food Key growth drivers Life science/Pharma Digital/Tech Consumer products Construction North Europe Environmental Asia Digital/Tech Environmental America 28% Pacific Construction Con
Slide 17: SGS is the point of reference when you need to be sure
Unique positioning within the TIC industry SGS is the point of reference when you need to be sure Gold standard solutions provider in the industry, with 145 years of established history and experience Largest number of national accreditations globally to support customers in meeting their compliance
Slide 18: Strategic priorities to create value based on three levers
Strategy 2027: Accelerating growth, building trust Strategic priorities to create value based on three levers Performance Strong Growth & agility financial profile Accountability, performance 1 Sustainability transition 1 and cash flow culture 1 Financial targets 2 Digital acceleration 2 New organiz
Slide 19: Leveraging our global network and local technical expertise
Growth Leveraging our global network and local technical expertise Capturing outstanding Rebalancing strong Demonstrated leadership growth opportunities footprint and increasing in digital trust services from sustainability proximity Group sales in North America Inspector, Natural Resources, Peru Te
Slide 20: High-performance culture, leaner corporate structure
Performance & Agility High-performance culture, leaner corporate structure Focused Executive Committee of 12 members Enhanced P&L responsibility and accountability in the network, with 6 P&L owners for Testing & Inspection (5 regions) and Certification (1 global business) New incentives introduced,
Slide 21: Streamlined leadership
New organization Streamlined leadership Géraldine Picaud Chief Executive Officer Global Functions Commercial and Operational Activities Global Business Testing & Inspection Development From Marta Steven Malcolm Teymur Charles 8 May Vlatchkova Du Reid Abasov Ly Wa Hoi Chief Asia Europe Eastern Europe
Slide 22: Accelerating growth, building trust
Financial targets Accelerating growth, building trust Adjusted Free cash flow Sales Operating Income After leases and interests margin on sales 5% - 7% Significant improvement > 50% organic growth at least 1.5 percentage points cash conversion1 Annually By 2027 By 2027 1 Free cash flow / (EBITDA – l
Slide 23: Key principles to finance Strategy 2027
Capital allocation Key principles to finance Strategy 2027 Accelerating growth, building trust Resources Use of funds Solid multi-year cash flow Growth through accretive and synergetic acquisitions Financing through debt while keeping strong credit metrics Attractive shareholder remuneration through
Slide 24: Ambitious 2027 sustainability targets
New corporate sustainability KPIs Ambitious 2027 sustainability targets Environment Social Governance Environmental Diversity, equity Education Responsible leadership and inclusion business Material progress towards At least one third 7 million hours of training 93% customer 28% reduction in Scope 3
Slide 25: Financial calendar
Financial calendar Q1 sales H1 2024 Q3 sales update results update 26 April 2024 24 July 2024 25 October 2024 Capital Markets FY 2024 Annual General Day results Meeting 20 - 21 November 2024 11 February 2025 26 March 2025 25 Annual General Meeting | 26 March 2024 © SGS Société Générale de Surveillan
Slide 26: sgs.com
When you need to be sure sgs.com