SGS Geological Services · SIX:SGSN

SGS Geological Services — SGS — H1 2025 Earnings Presentation

37 slides from SGS Geological Services's earnings presentation, Jul 25, 2025

  1. Slide 1: Strong H1 2025 results, Strategy 27 accelerated by ATS acquisition

    Strong H1 2025 results, Strategy 27 accelerated by ATS acquisition Géraldine Picaud CEO Marta Vlatchkova CFO Restricted Substance Testing, India 25 July 2025, Geneva

  2. Slide 2: Business highlights

    Business highlights Géraldine Picaud CEO 2 H1 2025 results | 25 July 2025 PFAS Contamination Testing, Sweden

  3. Slide 3: Strong H1 results, Strategy 27 accelerated by ATS acquisition

    Business highlights Strong H1 results Strategy 27 accelerated by ATS acquisition Strong financial performance, in line with Strategy 27 at full speed full year guidance Acquisition of Applied Technical Services (ATS)1, Solid organic sales growth of 5.3% a complementary major U.S. player: 80% of targ

  4. Slide 4: Acquisition of ATS, a complementary major U.S. player

    Acquisition of ATS Acquisition of ATS, a complementary major U.S. player Company overview Specialized provider of Testing, Inspection, Calibration and Forensics solutions in North America USD 460 million sales and USD 95 million EBITDA pre-synergies expected in 2026 Deal rationale Footprint rebalanc

  5. Slide 5: ATS at a glance

    Acquisition of ATS ATS at a glance Resilient and diversified pure U.S. player 85 Specialized, with complementary and well-balanced portfolio US locations Strong reputation, with decades of proven industry experience Present across regulated and critical end-markets Nationwide footprint with local re

  6. Slide 6: Specialized testing

    Acquisition of ATS Specialized testing End-to-end capabilities, from materials testing & products assessment to environmental simulation Advanced chemical and contaminant analysis Exposure to high-growth end-markets; high margins & efficient capital deployment ~275 specialized experts delivering tai

  7. Slide 7: Specialized inspection

    Acquisition of ATS Specialized inspection Highly advanced capabilities, ensuring integrity and reliability of critical systems Cutting-edge techniques to ensure safety and compliance of building and infrastructure Steady and recurring business; high margin and cash conversion ~825 certified experts

  8. Slide 8: Calibration

    Acquisition of ATS Calibration Precision services ensuring equipment accuracy, reliability and full traceability to national standards Comprehensive capabilities, including electrical, environmental and avionics calibration Recurring business in attractive end-markets; strong platform for future exp

  9. Slide 9: Forensics

    Acquisition of ATS Forensics Leading provider of forensic testing and engineering support for legal and insurance cases Broad capabilities spanning investigation, litigation, risk inspection, and building safety certification Advanced technologies, including Computed Tomography (CT) and 3D laser sca

  10. Slide 10: Strategic rationale and synergies

    Acquisition of ATS Strategic rationale and synergies Major milestone in Strategy 27 target to at least double North America sales, USD billion sales in North America by 2027 vs 2023 Strong complementarity, with at least USD 30 million in >2x sales in annual run rate EBITDA synergies within 3 years o

  11. Slide 11: ATS acquisition creates sustainable long-term value

    Acquisition of ATS ATS acquisition creates sustainable long-term value EV1 of USD 1 325 million, representing 11.2x 2026 EBITDA with run rate synergies Mainly financed through cash and debt, while maintaining leverage2 around 2.0x EPS accretive from year 1 SGS organic growth and AOI margin enhanced,

  12. Slide 12: Strong contribution from Sustainability services

    H1 2025 highlights Strong contribution from Sustainability services Signed partnership with The PLEDGE to support zero waste to landfill and promote circularity across food service supply chains Joined forces with CNETE to advance innovation in the battery sector in Canada and contribute to the glob

  13. Slide 13: Leading the way in Digital Trust

    Growth: Digital Trust services Leading the way in Digital Trust Achieved accreditation by ANAB, the world’s largest standards authority, to certify organizations for their responsible use of AI Entered strategic collaboration with NVIDIA, through CertX joining the Halos Lab ecosystem to advance safe

  14. Slide 14: Twelve acquisitions announced to date in 2025

    Accelerated bolt-on activity Twelve acquisitions announced to date in 2025 Representing total annual sales of more than CHF 90 million 14 H1 2025 results | 25 July 2025

  15. Slide 15: Solid organic sales growth supported by all business lines

    H1 2025 sales by business line Solid organic sales growth supported by all business lines Sales by business line1 CHF million Testing & Inspection Certification SGS Group 5.4% 4.4% 5.3% 5.3% 2.9% 1 129 3 422 6.5% 801 8.9% 672 440 380 Industries & Natural Connectivity & Health & Business H1 2025 sale

  16. Slide 16: Solid performance led by Safety and Environment

    Testing & Inspection: Industries & Environment Solid performance led by Safety and Environment CHF million H1 2024 H1 2025 I&E Sales 1 101 1 129 Total change 2.5% of which organic 5.3% 33% of which scope 1.7% of which FX -4.5% of Group Adjusted operating income 124 136 sales Adjusted operating incom

  17. Slide 17: Resilient performance

    Testing & Inspection: Natural Resources Resilient performance CHF million H1 2024 H1 2025 NR Sales 819 801 Total change -2.2% of which organic 2.9% 23% of which scope -0.3% of which FX -4.8% of Group Adjusted operating income 110 103 sales Adjusted operating income margin 13.4% 12.9% Solid organic g

  18. Slide 18: Strong performance led by Sustainability & Connectivity

    Testing & Inspection: Connectivity & Products Strong performance led by Sustainability & Connectivity CHF million H1 2024 H1 2025 C&P Sales 646 672 Total change 4.0% of which organic 6.5% 20% of which scope 1.5% of which FX -4.0% of Group Adjusted operating income 135 150 sales Adjusted operating in

  19. Slide 19: Excellent results led by Food and improvement in Pharma

    Testing & Inspection: Health & Nutrition Excellent results led by Food and improvement in Pharma CHF million H1 2024 H1 2025 H&N Sales 403 440 Total change 9.2% of which organic 8.9% 13% of which scope 2.3% of which FX -2.0% of Group Adjusted operating income 34 52 sales Adjusted operating income ma

  20. Slide 20: Performance driven by Digital Trust and ESG

    Certification: Business Assurance Performance driven by Digital Trust and ESG CHF million H1 2024 H1 2025 BA Sales 366 380 Total change 3.8% of which organic 4.4% 11% of which scope 3.0% of which FX -3.6% of Group Adjusted operating income 68 68 sales Adjusted operating income margin 18.6% 17.9% Mid

  21. Slide 21: Financial performance

    Financial performance Marta Vlatchkova CFO 21 H1 2025 results | 25 July 2025 Chemical Analysis, China

  22. Slide 22: H1 2025 key figures

    Financial performance H1 2025 key figures Sales Adjusted Operating Income CHF 3 422 million CHF 509 million +5.3% organic growth 14.9% AOI margin on sales [+2.6% reported] [+80 basis points versus H1 2024] Free cash flow excluding headquarters disposal CHF 208 million +34% versus H1 2024 22 H1 2025

  23. Slide 23: Solid organic sales growth of 5.3%

    H1 2025 sales bridge Solid organic sales growth of 5.3% Sales bridge CHF million +5.3% +1.4% -4.1% +2.6% +47 3 422 3 335 +175 -135 H1 2024 sales Organic Scope Forex H1 2025 sales 23 H1 2025 results | 25 July 2025

  24. Slide 24: Growth supported by all regions

    H1 2025 sales by region Growth supported by all regions Sales by region CHF million Testing & Inspection Certification SGS Group 5.4% 4.4% 5.3% 1.1% 6.5% 3 422 996 964 4.7% 8.4% 13.4% 403 385 294 380 Asia North Eastern Europe, Latin Europe America Business Assurance H1 2025 sales Pacific America Mid

  25. Slide 25: Strong improvement of 80 basis points to 14.9%

    H1 2025 adjusted operating income (AOI) Strong improvement of 80 basis points to 14.9% AOI margin bridge CHF million +80 basis points 14.1% 14.9% +52 +13 -27 +80 +20 -20 971 471 basis basis basis 509 points points points H1 2024 AOI Organic Scope Forex H1 2025 AOI 25 H1 2025 results | 25 July 2025

  26. Slide 26: Efficiency plans well on track

    CHF 150 million efficiency plans Efficiency plans well on track 100 m 1 50 m 1 CHF CHF Leaner operating model Procurement savings New organization Contracts renegotiation Corporate simplification Consumables harmonization Country structure simplification Indirect spend optimization Fully executed as

  27. Slide 27: Close to CHF 100 million savings realized on efficiency plans

    CHF 150 million efficiency plans Close to CHF 100 million savings realized on efficiency plans Phasing of savings impact1 CHF million 150 46 96 41 9 H1 2024 H2 2024 H1 2025 Savings H2 2025 2026 Total accounted for as efficiency of 30 June 2025 plans Leaner operating model Procurement savings 1 At 20

  28. Slide 28: Earnings per share of CHF 1.64

    Full P&L Earnings per share of CHF 1.64 CHF million H1 2024 H1 2025 Change Sales 3 335 3 422 + 87 + 2.6% Adjusted operating income 471 509 + 38 + 8.1% Amortization and impairment of acquired intangibles -15 -22 -7 Restructuring -34 -16 + 18 Gain on headquarters disposal, loss on divestments 0 34 + 3

  29. Slide 29: Excellent free cash flow generation

    Free cash flow review Excellent free cash flow generation CHF million H1 2024 H1 2025 Change EBITDA after restructuring 655 728 +73 Non-cash and non-operating items 29 -8 -37 Change in net working capital -170 -174 -4 Taxes paid -117 -124 -7 Net Capex -128 -107 +21 Lease payments -88 -87 +1 Net inte

  30. Slide 30: Outlook 2025

    Outlook 2025 Géraldine Picaud CEO 30 H1 2025 results | 25 July 2025 Quantitative Analysis for Environmental Contaminants, Spain

  31. Slide 31: Outlook confirmed

    Outlook 2025 Outlook confirmed 5% to 7% organic sales growth 1% to 2% bolt-on contribution to annual sales growth At least 30 basis points improvement in adjusted operating income margin on sales, in reported terms Strong free cash flow generation Collected Soil Sample for Testing, Portugal 31 H1 20

  32. Slide 32: Appendix

    Appendix 32 H1 2025 results | 25 July 2025

  33. Slide 33: Strong appreciation of the CHF against all major currencies

    FX impact Strong appreciation of the CHF against all major currencies Currency impact on sales growth Currency impact on adjusted operating income (CHF million) (CHF million) H1 2025 sales 3 557 H1 2025 AOI 536 at constant currency at constant currency CNY -0.6% CNY EUR -0.6% EUR USD -0.3% USD CAD -

  34. Slide 34: Solid organic sales growth of 5.0%

    Q2 2025 sales bridge Solid organic sales growth of 5.0% Q2 Sales bridge CHF million +5.0% +1.5% -7.5% -1.0% 1 758 +87 +26 1 741 -130 Q2 2024 sales Organic Scope Forex Q2 2025 sales 34 H1 2025 results | 25 July 2025

  35. Slide 35: Financial calendar

    Upcoming events Financial calendar Q3 2025 sales update FY 2025 results Annual General Meeting Virtual Zürich Zürich 23 October 2025 11 February 2026 26 March 2026 Q1 2026 sales update H1 2026 results Virtual Virtual 23 April 2026 24 July 2026 35 H1 2025 results | 25 July 2025

  36. Slide 36: Disclaimer

    SGS 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 f

  37. Slide 37: sgs.com

    sgs.com © SGS Société Générale de Surveillance SA. (2025) All rights reserved.

SGS — H1 2025 Earnings Presentation on 6ix