SGS Geological Services · SIX:SGSN

SGS Geological Services — SGS — Shareholder Meeting (March 2025)

29 slides from SGS Geological Services's shareholder meeting presentation, Mar 26, 2025

Slide 1: Assemblée Générale Ordinaire
Assemblée Générale Ordinaire Soil Collection and Analysis, Portugal 26 March 2025, Geneva
Slide 4: Delivering Strategy 27 at full speed
HIGHLY CONFIDENTIAL Delivering Strategy 27 at full speed Sample Transportation by Drone, Netherlands 4 2025 AGM | 26 March 2025 © SGS Société Générale de Surveillance SA. (2025) All rights reserved.
Slide 5: Key takeaways
Delivering Strategy 27 Key takeaways OUR PRIORITY IS GROWTH SGS Regions & Business has changed focused on growth Leaders Sustainability & Digital Trust empowered to deliver 5 2025 AGM | 26 March 2025 © SGS Société Générale de Surveillance SA. (2025) All rights reserved.
Slide 6: Largest service portfolio and global network
SGS at a glance Largest service portfolio and global network SGS labs and business facilities I December 2024 Resilient, recession-proof, not cyclical Largest number of national accreditations globally Top 3 in most activities 934 145 years of history and scientific expertise 181 EUROPE NORTH AMERIC
Slide 7: Three value drivers
Strategy 27: Accelerating growth, building trust Three value drivers People, Strong Growth performance financial and and agility ESG profile 7 2025 AGM | 26 March 2025 © SGS Société Générale de Surveillance SA. (2025) All rights reserved.
Slide 8: Three value drivers: Growth
Strategy 27: Accelerating growth, building trust Three value drivers: Growth People, Strong Growth performance financial and and agility ESG profile 1 Sustainability 2 Digital Trust 3 Portfolio focus 8 2025 AGM | 26 March 2025 © SGS Société Générale de Surveillance SA. (2025) All rights reserved.
Slide 9: Best positioned to capture sustainability opportunities
Growth – Sustainability Best positioned to capture sustainability opportunities 119 countries Global leader SIX Swiss in SGS network, with in key segments on-site expertise and including GHG Exchange SGS approved as extensive knowledge of emissions, forestry official expert reviewer clients’ global
Slide 10: Close to CHF 100 million in incremental sales in 2024
Growth: Sustainability services Close to CHF 100 million in incremental sales in 2024 Sales, CHF million New IMPACT NOW offering to support clients’ sustainability needs Group target of 1 000 > CHF 600 million Growth above market in 2024, leading to strong progress incremental sales by 2027 towards
Slide 11: Leading in a double-digit growth market
Growth – Digital Trust Leading in a double-digit growth market Largest Global leader 40+ in high assurance years of experience network cybersecurity in high security 500+ digital trust evaluations with 20% assurance testing experts and 10 market share accredited cyberlabs 60+ First First standards a
Slide 12: Over CHF 30 million in incremental sales in 2024
Growth: Digital Trust services Over CHF 30 million in incremental sales in 2024 Sales, CHF million Significant progress towards the 2027 target, with 22% growth 350 in sales compared to prior year Group target of > CHF 200 million Growth driven by high assurance cybersecurity evaluations, incrementa
Slide 13: Increasing presence in North America and Europe
Growth – portfolio geographical footprint Increasing presence in North America and Europe Benefit from favorable trends due to increased regulations and near-shoring in North America and Europe Double sales in North America by 2027 Continue to benefit from the expansion of Asia Pacific’s middle clas
Slide 14: Eleven acquisitions in 2024, four in early 2025
Successful relaunch of M&A Eleven acquisitions in 2024, four in early 2025 Representing total annual sales of ~ CHF 90 million. Average EV/EBITDA 2024 multiple of 7.5x 4 acquisitions in early 2025: • Aster Global • RTI Laboratories • Stella IMO Group • IMO Stronger-than-ever pipeline More to come 14
Slide 15: Three value drivers: People, performance and agility
Strategy 27: Accelerating growth, building trust Three value drivers: People, performance and agility People, Strong Growth performance financial and and agility ESG profile Accountability and 1 performance culture 2 New organization 3 Corporate simplification 15 2025 AGM | 26 March 2025 © SGS Socié
Slide 16: Accountability and performance culture
People, performance and agility Accountability and performance culture Talent development and retention New incentive scheme fully aligned with Group targets implemented in February Accountability and performance culture to fully leverage SGS’s recognized scientific excellence Local management empow
Slide 17: New organization with focused and efficient management team
People, performance and agility New organization with focused and efficient management team Géraldine Picaud Chief Executive Officer Global Functions P&L Leaders Global Business Testing & Inspection Development Marta James Steven Malcolm Teymur Charles Vlatchkova Roberts Du Reid Abasov Ly Wa Hoi Chi
Slide 18: CHF 150 million organizational efficiencies
People, performance and agility CHF 150 million organizational efficiencies 100m 50m CHF CHF Leaner operating model Procurement savings New organization Contracts renegotiation Corporate simplification Consumables harmonization Country structure simplification Indirect spend optimization >90% saving
Slide 19: Three value drivers: Strong financial and ESG profile
Strategy 27: Accelerating growth, building trust Three value drivers: Strong financial and ESG profile People, Strong Growth performance financial and and agility ESG profile 1 Financial targets 2 Capital allocation Corporate sustainability 3 KPIs 19 2025 AGM | 26 March 2025 © SGS Société Générale d
Slide 20: Delivering attractive shareholder returns
Strong financial profile Delivering attractive shareholder returns Mid-term financial targets Sales Adjusted Operating Income Free cash flow margin on sales After leases and interests Significant improvement 5% - 7% > 50% organic growth > 1.5% cash conversion Annually By 2027 By 2027 20 2025 AGM | 2
Slide 21: Capital allocation
Strong financial profile Capital allocation Key Principles Shareholders Free Cashflow ≥ Bolt-ons + Dividend Free cash flow, remuneration Strong investment grade maintained net of CAPEX Attractive shareholder remuneration Bolt-ons Cash in Cash out Principles for investment Principles for Shareholder
Slide 22: 2027 corporate sustainability targets and 2024 performance
Strong ESG profile 2027 corporate sustainability targets and 2024 performance Environment Diversity Education Governance Material progress At least one third 7 million hours of 93% customer towards 28% of leadership training per year satisfaction score 2027 ESG target reduction in positions held by
Slide 23: 2024 full year results
HIGHLY CONFIDENTIAL 2024 full year results Food Testing & Analysis, Philippines 23 2025 AGM | 26 March 2025 © SGS Société Générale de Surveillance SA. (2025) All rights reserved.
Slide 24: Excellent 2024 results
2024 business highlights Excellent 2024 results Strong financial performance Record sales of CHF 6 794 million, +2.6% compared to 2023 Strong organic sales growth of 7.5% Excellent progression in adjusted operating income margin, up 60 basis points (bps) to 15.3% of sales Outstanding free cash flow
Slide 25: Strong organic sales supported by all operations
2024 performance by division Strong organic sales supported by all operations Sales by region CHF million Testing & Inspection Certification SGS Group 7.6% 6.2% 7.5% 4.4% 5.8% 6 794 1 984 1 991 7.2% 14.1% 17.2% 720 770 761 568 Asia North Latin Eastern Europe, Europe Business Assurance 2024 sales Pac
Slide 26: Growth from all business lines
2024 sales performance Growth from all business lines Sales by business line CHF million Testing & Inspection Certification SGS Group 7.6% 6.2% 7.5% 8.3% 7.6% 6 794 2 261 8.2% 1 612 5.2% 1 282 878 761 Industries & Natural Connectivity & Health & Business SGS Environment Resources Products Nutrition
Slide 27: Attractive shareholder remuneration
Proposed dividend Attractive shareholder remuneration Proposed dividend Attractive shareholder remuneration through stable dividend of CHF 3.20 Scrip dividend, optional shares or cash, to be proposed at this Annual General Meeting (26 March 2025) Clinical Studies, USA 27 2025 AGM | 26 March 2025 © S
Slide 28: Key takeaways from today
Delivering Strategy 27 Key takeaways from today Our priority is growth At least At least At least CHF 600 million CHF 200 million CHF 1.4 billion incremental sales from incremental sales from sales in North America Sustainability by 2027 Digital Trust by 2027 by 2027 1% to 2% annual Free cash flow t

SGS — Shareholder Meeting (March 2025) on 6ix

SGS Geological Services — SGS — Shareholder Meeting (March 2025)

Slide 1: Assemblée Générale Ordinaire

Slide 2: Speaker: Calvin Grieder, Chairman

Slide 3: Speaker: Géraldine Picaud, CEO

Slide 4: Delivering Strategy 27 at full speed

Slide 5: Key takeaways

Slide 6: Largest service portfolio and global network

Slide 7: Three value drivers

Slide 8: Three value drivers: Growth

Slide 9: Best positioned to capture sustainability opportunities

Slide 10: Close to CHF 100 million in incremental sales in 2024

Slide 11: Leading in a double-digit growth market

Slide 12: Over CHF 30 million in incremental sales in 2024

Slide 13: Increasing presence in North America and Europe

Slide 14: Eleven acquisitions in 2024, four in early 2025

Slide 15: Three value drivers: People, performance and agility

Slide 16: Accountability and performance culture

Slide 17: New organization with focused and efficient management team

Slide 18: CHF 150 million organizational efficiencies

Slide 19: Three value drivers: Strong financial and ESG profile

Slide 20: Delivering attractive shareholder returns

Slide 21: Capital allocation

Slide 22: 2027 corporate sustainability targets and 2024 performance

Slide 23: 2024 full year results

Slide 24: Excellent 2024 results

Slide 25: Strong organic sales supported by all operations

Slide 26: Growth from all business lines

Slide 27: Attractive shareholder remuneration

Slide 28: Key takeaways from today

Slide 29: sgs.com