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A Strong Start to the Next Stage of Our Strategic Evolution

Ad Hoc AnnouncementsAd hocMay 27, 2021

“Today we communicate the next phase of our strategic evolution, which further aligns SGS to customer demand and the key TIC megatrends of Connectivity, Nutrition, Health & Wellness, Sustainability & Climate, Infrastructure and Consumer Empowerment. It also further integrates our non-financial and financial objectives.

“This next strategic step has been developed in close collaboration with our global network and has already been successfully implemented. As a result, we expect to grow our revenues at a high-single digit compound annual growth rate (CAGR) and our AOI at a CAGR of over 10% for the planning period (2020-23) in constant currency. Furthermore, I would like to thank all our colleagues for delivering a strong start to 2021 and the plan, which sets us firmly on the path of enabling a better, safer and more interconnected world for all our stakeholders,” said Frankie Ng, Chief Executive Officer of SGS.

Our Investor Days and How We Measure Our Success

Our virtual investor days will focus on the next stage in our strategic evolution. During the event, Frankie Ng, our CEO, and Dominik de Daniel, our CFO, will present the Group strategic roadmap to 2023 and beyond. Members of our Operations Council and SGS management will also present the divisional building blocks that support the delivery of our 2023 ambitions, which include ambitious financial and non-financial targets for the next three years:

Strategic Roadmap 2023

Current Trading

The hard work, commitment and entrepreneurism of our employees, in what remains a challenging environment, supported by our focused capital allocation policy has resulted in a strong start to 2021.

Our January-April revenue growth in constant currency was 15%, which comprises organic growth of 10% and 5% from acquisitions. Compared to 2019, on an organic basis, revenues were flat. From a divisional perspective, Knowledge, Health & Nutrition and Connectivity & Products have all shown a very strong organic performance, above the Group average. Industry & Environment grew organically in high single digits and Natural Resources at a low single digit. From a regional perspective, all regions returned to organic growth over the period.

We are pleased with our constant currency Adjusted Operating Income (AOI) performance, which, as expected, is materially ahead of the prior year. Profitability has also increased compared to the comparable period in 2019 reflecting the structural optimization measures taken.

FY 2021 Outlook Remains Unchanged

  • Solid organic growth normalizing for the impact of COVID-19
  • Improving the Adjusted Operating Income margin
  • Strong cash conversion
  • Maintaining best-in-class organic return on invested capital
  • Accelerate investment into our strategic focus areas with M&A as a key enabler
  • At least maintain or grow the dividend

The Format and Agenda of the Investor Days

SGS is hosting its virtual investor day today, May 27, and a ‘speed-dating’ event on May 28 for analysts and investors to get to know our senior management team.

Agenda and Event Information

For further information, please contact:

Toby Reeks
SVP Corporate Communication, Sustainability & Investor Relations
t: +41 79 641 83 02

About SGS

We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for quality and integrity. Our 89,000 employees operate a network of 2,600 offices and laboratories, working together to enable a better, safer and more interconnected world.

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P.O. Box 2152 1211,

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