SGS Geological Services · SIX:SGSN

SGS Geological Services — SGS — FY2019 Earnings Presentation

56 slides from SGS Geological Services's earnings presentation, Jan 28, 2020

  1. Slide 1: SGS Group Results: 2019 Full Year Results Presentation

    SGS GROUP RESULTS 2019 FULL YEAR RESULTS PRESENTATION

  2. Slide 2: Disclaimer

    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 facto

  3. Slide 3: Highlights, Financial Review, Business Review, Outlook, Q&A, Appendix

    HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  4. Slide 4: Strong adjusted operating income growth and strong ROIC

    STRONG ADJUSTED OPERATING INCOME GROWTH AND STRONG ROIC 2019 HIGHLIGHTS CHF 6.6 BN CHF 1 063 MIO CHF 702 MIO CHF 870 MIO 25.5% CHF 80 1.2% CCY 1 4.6% CCY 1 1.7% 2.6% organic 1 6.6 6.5 1 063 702 690 870 25.5 80 78 1 016 24.2 796 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 ADJUSTED OPE

  5. Slide 5: Long-term shareholder value creation

    LONG-TERM SHAREHOLDER VALUE CREATION REVENUE ADJUSTED FREE CASH FLOW OPERATING INCOME1 870 6.7 6.6 1 050 1 063 796 6.0 6.3 969 738 706 5.7 917 919 658 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 RETURN ON PAYOUT RATIO3 NET PROFIT INVESTED CAPITAL2 25.5% 94.5% 97.8% 664

  6. Slide 6: Strategic focus on higher value-added services through portfolio evolution

    STRATEGIC FOCUS ON HIGHER VALUE-ADDED SERVICES THROUGH PORTFOLIO EVOLUTION ACQUISITIONS LEANSIS PRODUCTIVIDAD FLORIAAN B.V. TESTING, ENGINEERING AND (MAJORITY STAKE) CONSULTING SERVICES, INC. Business line: CBE Business line: EHS Business line: IND Country: SPAIN Country: NETHERLANDS Country: USA CH

  7. Slide 7: Strategic focus on higher value-added services: acquisitions and partnerships

    STRATEGIC FOCUS ON HIGHER VALUE-ADDED SERVICES THROUGH PORTFOLIO EVOLUTION ACQUISITIONS AND STRATEGIC PARTNERSHIPS PT WLN INDONESIA DMW ENVIRONMENTAL SAFETY LTD. ARGUS INTERNATIONAL, INC. (MAJORITY STAKE) (MAJORITY STAKE) Business line: EHS Business line: EHS Business line: CBE Country: INDONESIA Co

  8. Slide 8: Strategic focus on higher value-added services: disposals

    STRATEGIC FOCUS ON HIGHER VALUE-ADDED SERVICES THROUGH PORTFOLIO EVOLUTION DISPOSAL SIGNED DISPOSALS EFFECTIVE Q1 2020 PETROLEUM SERVICES LIFE ACTIVITIES IN ITALY PEST MANAGEMENT AND FUMIGATION CORPORATION (PSC) Business line: OGC Business line: AFL Business line: AFL Country: USA Country: ITALY Cou

  9. Slide 9: Financial Review

    HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  10. Slide 10: Good adjusted operating income growth followed by improvement of the margins

    GOOD ADJUSTED OPERATING INCOME GROWTH FOLLOWED BY AN IMPROVEMENT OF THE MARGINS 2019 FINANCIAL HIGHLIGHTS DECEMBER DECEMBER 2018 Change DECEMBER Change (CHF million) 2019 CCY1 in CCY 1 % 2018 in % REVENUE 6 600 6 522 1.2 6 706 (1.6) ADJUSTED OPERATING INCOME2 1 063 1 016 4.6 1 050 1.2 ADJUSTED OPERA

  11. Slide 11: Financial Review: Revenue

    HIGHLIGHTS FINANCIAL REVIEW REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW SECOND HALF 2019 FINANCIAL SUMMARY BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  12. Slide 12: Moderate organic revenue growth

    MODERATE ORGANIC REVENUE GROWTH 2019 REVENUE GROWTH COMPOSITION CHF MIO 2.6% 1.1% (2.5%) (2.8%) (1.6%) 72 (165) 171 (184) 6 706 6 600 Constant currency growth 1.2% REVENUE ORGANIC ACQUISITIONS DISPOSALS CURRENCY REVENUE DECEMBER 2018 IMPACT DECEMBER 2019 FULL YEAR RESULTS PRESENTATION © SGS SA 2020

  13. Slide 13: Organic growth across the majority of the portfolio

    ORGANIC GROWTH ACROSS THE MAJORITY OF THE PORTFOLIO 2019 REVENUE GROWTH BY BUSINESS GROWTH1 2019 (0.2%) 3.8% 0.3% AFL 3.9% 3.7% MIN 3.7% (13.5%) 2.9% OGC (10.6%) 5.4% 0.3% CRS 5.7% 1.5% 11.7% CBE 13.2% 2.3% 0.6% IND 2.9% 4.6% 2.5% EHS 7.1% (3.7%) 0.2% TRP (3.5%) (4.8%) 0.4% GIS (4.4%) (2.5%) 2.6% 1.

  14. Slide 14: Organic growth led by Asia/Pacific

    ORGANIC GROWTH LED BY ASIA/PACIFIC 2019 REVENUE GROWTH1 BY REGION GROWTH1 2019 (0.2%) 1.6% 0.7% EUROPE/AFRICA/ 2.1% MIDDLE EAST (9.5%) 2.3% 2.8% AMERICAS (4.4%) 4.4% 0.2% ASIA/PACIFIC 4.6% (2.5%) 2.6% 1.1% TOTAL GROUP 1.2% Organic Acquisitions Disposals 1. Constant currency (CCY). FULL YEAR RESULTS

  15. Slide 15: Headcount decreased by 5%

    HEADCOUNT DECREASED BY 5% FTE1 END OF PERIOD FTE1 AVERAGE BY REGION 1 350 (2 260) 97 368 529 (4 326) 96 492 (690) (2 145) 837 94 494 92 661 Decrease: (4 707) (4.8%) Decrease: (1 998) (2.1%) DEC. ORGAN. COST ACQUI. DISPOS./ DEC. DEC. EUR./AFR./ AMERICAS ASIA/ DEC. 2018 OPTIMIS. RESTR. 2019 2018 MID.

  16. Slide 16: Financial Review: Adjusted Operating Income

    HIGHLIGHTS FINANCIAL REVIEW REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW SECOND HALF 2019 FINANCIAL SUMMARY BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  17. Slide 17: Good organic adjusted operating income growth

    GOOD ORGANIC ADJUSTED OPERATING INCOME GROWTH 2019 ADJUSTED OPERATING INCOME1 GROWTH CHF MIO 4.8% 1.3% (1.5%) (3.4%) 1.2% 13 (15) (34) 49 1 063 1 050 Constant currency growth 4.6% ADJ. OP. INC. ORGANIC ACQUISITIONS DISPOSALS CURRENCY ADJ. OP. INC. DECEMBER 2018 IMPACT DECEMBER 2019 1. Before amortiz

  18. Slide 18: Margin improvement across the majority of businesses

    MARGIN IMPROVEMENT ACROSS THE MAJORITY OF BUSINESSES 2019 ADJUSTED OPERATING INCOME MARGIN1, 2 30% 27.9% 25.8% 25.7% 25% 20.0% 20.4% 20% 17.3% 16.2% 16.0% 16.1% 17.0% 15.3% 15.6% 16.1% 15% 13.2% 12.0% 12.4% 11.2% 10.9% 10% 9.4% 9.0% 5% 0% AFL MIN OGC CRS CBE IND EHS TRP GIS TOTAL GROUP 20182 2019 1.

  19. Slide 19: Financial Review: Balance Sheet

    HIGHLIGHTS FINANCIAL REVIEW REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW SECOND HALF 2019 FINANCIAL SUMMARY BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  20. Slide 20: 2019 Consolidated Balance Sheet

    2019 CONSOLIDATED BALANCE SHEET ASSETS EQUITY AND LIABILITIES (CHF million) DEC 2019 DEC 2018 (CHF million) DEC 2019 DEC 2018 PPE owned and leased 1 537 969 Equity holder of SGS SA 1 514 1 668 Goodwill and other intangible assets 1 468 1 426 Non-controlling interests 81 75 Other non-currents assets

  21. Slide 21: Financial Review: Cash Flow

    HIGHLIGHTS FINANCIAL REVIEW REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW SECOND HALF 2019 FINANCIAL SUMMARY BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  22. Slide 22: Strong cash flow generation

    STRONG CASH FLOW GENERATION 2019 CONDENSED CASH FLOW (CHF million) DECEMBER 2019 DECEMBER 2018 PROFIT FOR THE PERIOD 702 690 Non-cash and non-operating items 756 554 (Increase)/decrease in working capital (3) 95 Taxes paid (306) (265) CASH FLOW FROM OPERATING ACTIVITIES 1 149 1 074 Net purchase of f

  23. Slide 23: Further improvement of operating NWC and controlled level of capex

    FURTHER IMPROVEMENT OF OPERATING NWC AND CONTROLLED LEVEL OF CAPEX OPERATING NET WORKING CAPITAL CAPEX IN % OF THE REVENUE IN % OF REVENUE1, 2 150 1.7% 1.6% 0.6% 0.3% 2.0% 400 4.8% 4.8% 4.5% 4.4% 5.5% 5.0% 350 125 4.5% 1.5% 300 302 304 4.0% 100 288 290 99 99 250 3.5% 3.0% 75 1.0% 200 2.5% 150 2.0% 5

  24. Slide 24: Financial Review: Second Half 2019 Financial Summary

    HIGHLIGHTS FINANCIAL REVIEW REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW SECOND HALF 2019 FINANCIAL SUMMARY BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  25. Slide 25: Strong margin increase in H2 2019

    STRONG MARGIN INCREASE IN H2 2019 REVENUE GROWTH EVOLUTION AOI MARGIN EVOLUTION 5.0% 18.0% 17.6% 4.0% 3.9% 17.0% 3.5% 16.7% 3.0% 16.1% 2.6% 16.0% 15.6% 2.0% 1.7% 1.2% 15.0% 14.6% 1.0% 14.4% 14.0% 0.0% 13.0% -1.0% (1.5)% -2.0% 12.0% H1 2019 H2 2019 FY 2019 H1 H2 FY Organic Total CCY 2018 2019 FULL YE

  26. Slide 26: Financial Review: Financial Summary

    HIGHLIGHTS FINANCIAL REVIEW REVENUE ADJUSTED OPERATING INCOME BALANCE SHEET CASH FLOW SECOND HALF 2019 FINANCIAL SUMMARY BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  27. Slide 27: Structural optimization and portfolio management

    STRUCTURAL OPTIMIZATION AND PORTFOLIO MANAGEMENT · Completion of structural cost optimization program for a total cost of CHF 73 million and expected annualized savings of above CHF 90 million · Implemented EVA recovery plans started to contribute positively to our recent performance · Recently anno

  28. Slide 28: Financial summary

    FINANCIAL SUMMARY · Revenue growth1 of 1.2% of which 2.6% organic · Increase in Adjusted Operating Income1,2 of 4.6%, reaching a historical mark, and stronger Adjusted Operating Income Margin at 16.1% · Profit for the period increased by 1.7% to CHF 702 million · Net Investment of CHF 448 million in

  29. Slide 29: Business Review

    HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  30. Slide 30: Growth across the portfolio: Agriculture, Food and Life (AFL)

    GROWTH ACROSS THE PORTFOLIO AGRICULTURE, FOOD AND LIFE (AFL) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Solid organic growth supported by all · REVENUE 1 074 1 034 3.9 1 063 1.0 business verticals ADJUSTED OPERATING Trade growth supported by b

  31. Slide 31: Solid performance: Minerals (MIN)

    SOLID PERFOMANCE MINERALS (MIN) ·· DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Overall solid growth despite a softer mining market · REVENUE 753 726 3.7 750 0.4 Trade and Inspection delivered strong organic growth ADJUSTED OPERATING 128 117 9.4 1

  32. Slide 32: Stabilizing market supports demand: Oil, Gas and Chemicals (OGC)

    STABILIZING MARKET SUPPORTS DEMAND OIL, GAS AND CHEMICALS (OGC) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Disposal of Plant and Terminal Operations ·· REVENUE 1 075 1 203 (10.6) 1 220 (11.9) in Netherlands and the USA completed successfully A

  33. Slide 33: Electrical & Electronics leading the growth: Consumer and Retail (CRS)

    ELECTRICAL & ELECTRONICS LEADING THE GROWTH CONSUMER AND RETAIL (CRS) ·· DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2,3 in CCY % 20183 in % Strong organic growth across business units REVENUE 1 021 966 5.7 987 3.4 Electrical & Electronics driven by gains in safety A

  34. Slide 34: Accelerated strategic diversification: Certification and Business Enhancement

    ACCELERATED STRATEGIC DIVERSIFICATION CERTIFICATION AND BUSINESS ENHANCEMENT (CBE) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2,3 in CCY % 20183 in % Double-digit growth driven by acquisitions in · REVENUE 447 395 13.2 404 10.6 technical consultancy field ADJUSTED

  35. Slide 35: Margin improvement while maintaining growth: Industrial (IND)

    MARGIN IMPROVEMENT WHILE MAINTAINING GROWTH INDUSTRIAL (IND) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Outstanding margin recovery combined with growth · REVENUE 930 904 2.9 940 (1.1) in most markets served ADJUSTED OPERATING Slight decline i

  36. Slide 36: Strength of portfolio confirmed: Environment, Health and Safety

    STRENGTH OF PORTFOLIO CONFIRMED ENVIRONMENT, HEALTH AND SAFETY (EHS) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Momentum in all business units and good · REVENUE 540 504 7.1 517 4.4 margin progress ADJUSTED OPERATING Recent acquisitions booste

  37. Slide 37: Underlying drivers remain strong: Governments and Institutions

    UNDERLYING DRIVERS REMAIN STRONG GOVERNMENTS AND INSTITUTIONS (GIS) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Top and bottom line impacted by unanticipated REVENUE 260 272 (4.4) 284 (8.5) changes in import and transit policies and delays · AD

  38. Slide 38: Strategic reorganization of the business: Transportation

    STRATEGIC REORGANIZATION OF THE BUSINESS TRANSPORTATION (TRP) · DECEMBER DECEMBER Change DECEMBER Change OVERVIEW (CHF million) 2019 2018 CCY2 in CCY % 2018 in % Testing services delivered moderate growth offset · REVENUE 500 518 (3.5) 541 (7.6) by declines in Regulated and Field services ADJUSTED O

  39. Slide 39: Transportation strategic business review

    TRANSPORTATION STRATEGIC BUSINESS REVIEW · A strategic review of TRP was completed in 2019 · Its activities will be integrated into multiple business lines, mainly GIS and IND · Provide a more natural home, generate operational synergies and reinvigorate the growth profiles of services FULL YEAR RES

  40. Slide 40: Outlook

    HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  41. Slide 41: Guidance 2020

    GUIDANCE 20201 SOLID ORGANIC HIGHER ADJUSTED ROBUST REVENUE GROWTH OPERATING INCOME2 CASH FLOW 1. At stable market conditions. – 2. Before amortization of acquired intangibles and non-recurring items. FULL YEAR RESULTS PRESENTATION © SGS SA 2020 41 28 JANUARY 2020 ALL RIGHTS RESERVED

  42. Slide 42: 2020 Outlook

    2020 OUTLOOK · To deliver solid organic growth · To accelerate mergers and acquisitions and remain disciplined on returns · To achieve an adjusted operating income margin of above 17% by end of period supported by network optimization · To ensure strong cash conversion · To maintain best-in-class re

  43. Slide 43: Q&A

    HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  44. Slide 44: To register for questions

    TO REGISTER FOR QUESTIONS PRESS* AND 1 ON YOUR TELEPHONE

  45. Slide 45: Appendix

    HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  46. Slide 46: Moderate organic revenue growth in H2 2019

    MODERATE ORGANIC REVENUE GROWTH IN H2 2019 H2 2019 REVENUE GROWTH COMPOSITION CHF MIO 1.7% 1.7% (4.9%) (2.6%) (4.1%) 57 (162) 57 3 400 (93) 3 259 Constant currency growth (1.5%) REVENUE ORGANIC ACQUISITIONS DISPOSALS CURRENCY REVENUE H2 2018 IMPACT H2 2019 FULL YEAR RESULTS PRESENTATION © SGS SA 202

  47. Slide 47: Organic revenue growth across the majority of the portfolio in H2 2019

    ORGANIC REVENUE GROWTH ACROSS THE MAJORITY OF THE PORTFOLIO IN H2 2019 H2 2019 REVENUE GROWTH BY BUSINESS GROWTH1 2019 (0.2%) 2.8% 0.4% AFL 3.0% 2.2% MIN 2.2% (26.7%) 2.2% OGC (24.5%) 5.3% 0.2% CRS 5.5% 3.4% 19.6% CBE 23.0% (2.0%) 0.4% IND (1.5%) 4.3% 4.3% EHS 8.6% (2.8%) 0.0% TRP (2.8%) (5.1%) 0.7%

  48. Slide 48: Strong margin improvement in IND, OGC and EHS in H2 2019

    STRONG MARGIN IMPROVEMENT IN IND, OGC AND EHS IN H2 2019 H2 2019 ADJUSTED OPERATING MARGIN1, 2 BY BUSINESS 35% 30% 26.6% 26.4% 27.0% 25% 22.1% 22.3% 20% 18.6% 18.0% 18.0% 17.6% 17.3% 16.7% 15.2% 15.3% 15% 14.1% 14.0% 13.2% 12.8% 11.7% 10.1% 10.2% 10% 5% 0% AFL MIN OGC CRS CBE IND EHS TRP GIS TOTAL G

  49. Slide 49: Adjusted operating income margin improvement in H2 2019

    ADJUSTED OPERATING INCOME MARGIN IMPROVEMENT IN H2 2019 H2 2019 FINANCIAL HIGHLIGHTS (CHF million) 2019 H2 2018 H2 CCY Change in CCY 1 % 2018 H2 Change in % REVENUE 3 259 3 307 (1.5) 3 400 (4.1) ADJUSTED OPERATING INCOME2 574 552 4.0 569 0.9 ADJUSTED OPERATING INCOME MARGIN2 17.6% 16.7% 16.7% OPERAT

  50. Slide 50: Well-balanced portfolio

    WELL-BALANCED PORTFOLIO 2019 REVENUE PORTFOLIO Change 1 Change 1 3.9% (0.3%) 0.4% 16.3% GIS AFL 7.6% (0.3%) TRP 0.3% 11.4% MIN 8.2% 0.5% EHS (2.1%) 16.3% OGC 14.1% 0.2% IND 6.7% 0.6% 0.7% 15.5% CBE CRS 1. Constant currency basis. FULL YEAR RESULTS PRESENTATION © SGS SA 2020 50 28 JANUARY 2020 ALL RI

  51. Slide 51: Well-balanced contribution

    WELL-BALANCED CONTRIBUTION 2019 ADJUSTED OPERATING INCOME1 PORTFOLIO Change 1, 2 Change 1, 2 4.2% (3.3%) (0.2%) 16.2% GIS AFL 6.2% (1.6%) TRP 0.5% 12.0% MIN 6.3% 0.9% EHS 0.2% 11.3% OGC 10.5% 2.5% IND 8.6% 0.8% 0.2% 24.7% CBE CRS 1. Before amortization of acquired intangibles and other non-recurring

  52. Slide 52: EUR, USD and CNY represent 55% of 2019 revenue

    EUR, USD AND CNY REPRESENT 55% OF 2019 REVENUE 2019 FOREIGN CURRENCY REVENUES 26.5% 12.9% EUR USD 14.9% CNY 26.0% 3.8% OTHER TWD 3.6% CAD 2.4% 2.7% RUB GBP 2.5% AUD 2.3% 2.4% BRL CLP FULL YEAR RESULTS PRESENTATION © SGS SA 2020 52 28 JANUARY 2020 ALL RIGHTS RESERVED

  53. Slide 53: EUR, GBP and CNY strengthened in 2019

    EUR, GBP AND CNY STRENGTHENED IN 2019 FOREIGN CURRENCY AVERAGE RATE CHANGE 2019 VERSUS 2018 RATE 5.0% 2.5% 1.6% 0.0% (0.9%) (0.8%) (2.5)% (1.9%) (2.8%) (2.9%) (5.0)% (3.7%) (5.5%) (7.5)% (6.7%) (6.3%) (10)% EUR USD CNY TWD CAD CLP GBP BRL AUD RUB 2019 1.1129 0.9938 0.1440 0.0322 0.7489 0.0014 1.2688

  54. Slide 54: Upcoming investor relations event dates

    UPCOMING INVESTOR RELATIONS EVENT DATES ANNUAL GENERAL MEETING DIVIDEND PAYMENT DATES OF SHAREHOLDERS Ex-Date: Thursday, 26 March 2020 Tuesday, 24 March 2020 Record data: Friday, 27 March 2020 Geneva, Switzerland Payment date: Monday, 30 March 2020 2020 HALF YEAR RESULTS Tuesday, 21 July 2020 INVEST

  55. Slide 55: Investor relations information

    INVESTOR RELATIONS INFORMATION SGS SA CORPORATE OFFICE MEDIA RELATIONS 1 place des Alpes Daniel Rufenacht P.O. Box 2152 SGS SA CH – 1211 Geneva 1 1 place des Alpes t +41 (0)22 739 91 11 P.O. Box 2152 f +41 (0)22 739 98 86 CH – 1211 Geneva 1 e sgs.investor.relations@sgs.com t +41 (0)22 739 94 01 www.

  56. Slide 56: © SGS Group Management SA – 2020 – All rights reserved – SGS is

    © SGS Group Management SA – 2020 – All rights reserved – SGS is a registered trademark of SGS Group Management SA. WWW.SGS.COM

SGS — FY2019 Earnings Presentation on 6ix