2Financial community – 17 January 2013BUSINESSOVERVIEW CONTENT FINANCIAL HIGHLIGHTS2012 HighlightsRevenue AnalysisOperati...
3Financial community – 17 January 2012
4HIGHLIGHTS Revenue growth of 16.3% to CHF 5.6 billion (historical rates)• 14.5% (constant currency) Organic revenue gro...
5FINANCIAL HIGHLIGHTS1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related...
6Financial community – 17 January 2013SERVICE PORTFOLIO1) Before amortisation of acquisition intangibles, restructuring, t...
7
8Financial community – 17 January 2013REVENUE GROWTH COMPOSITIONRevenuesDecember 11 Organic Acquisitions DisposalsCurrency...
9Financial community – 17 January 2013LOCAL CURRENCY GROWTH BY BUSINESS10.2%17.3%4.6%6.6%9.5%6.2%10.8%0.9%11.6%13.8%11.0%4...
10Financial community – 17 January 2013REVENUE GROWTH AND HEADCOUNTCHANGE BY REGION10.2%10.7%12.6%8.8%4.3%0.9%15.5%1.3%TOT...
11
12Financial community – 17 January 2013ADJUSTED OPERATING INCOME(1) GROWTH1) Before amortisation of acquisition intangible...
13Financial community – 17 January 2013HISTORICAL MARGIN PROGRESSION1) Before amortisation of acquisition intangibles, res...
14Financial community – 17 January 2013ADJUSTED OPERATING MARGIN(1) BY BUSINESS1) Before amortisation of acquisition intan...
15RESTRUCTURING COSTSFinancial community – 17 January 2013AGRI1.0%MIN7.1%OGC10.3%LIFE41.5%CTS6.3%SSC4.6%IND12.8%ENVI13.2%A...
16CASH FLOWFinancial community – 17 January 2013CHF million Dec 12 Dec 11PROFIT FOR THE PERIOD 590 561Non-cash items 493 4...
17Financial community – 17 January 2013CAPITAL EXPENDITUREAGRI5.9%MIN23.3%OGC19.6%LIFE4.9%CTS21.2%SSC1.3%IND8.3%ENVI5.4%AU...
18Financial community – 17 January 2013FOREIGN CURRENCY REVENUES 20122012 2011 ChangeEUR 1.2055 1.2334 (2.3)%USD 0.9380 0....
19Financial community – 17 January 2013FOREIGN CURRENCY SENSITIVITY ANALYSISEURO 1.17 1.21 1.24Revenues (47) 0 45Income (4...
20
21Financial community – 17 January 2013FINANCIAL HIGHLIGHTS (H2)1) Before amortisation of acquisition intangibles, restruc...
22Financial community – 17 January 2013LOCAL CURRENCY GROWTH BY BUSINESS (H2)9.3%14.5%3.9%7.5%9.9%6.3%10.3%4.4%12.0%8.1%9....
23Financial community – 17 January 2013ADJUSTED OPERATING MARGIN(1) BYBUSINESS (H2)17.5%20.3%14.1%11.2%26.9%20.1%10.7%10.4...
24
25AGRICULTURAL SERVICES (AGRI) Overview 2012• Strong organic growth of 11.0%, driven by positivemarkets for Trade Service...
26MINERALS SERVICES (MIN) Overview 2012• Strong markets and focused sales activity resultedin 24.2% revenue growth (13.8%...
27OIL, GAS & CHEMICALS SERVICES (OGC) Overview 2012• Strong organic growth of 11.6% sustained by solidtrade related servi...
28LIFE SCIENCE SERVICES (LIFE) Overview 2012• Double-digit organic revenue growth in laboratoryservices offset by weak Cl...
29CONSUMER TESTING SERVICES (CTS) Overview 2012• Strong organic revenue growth of 10.8% driven byAsia, South America, Eas...
30SYSTEMS & SERVICES CERTIFICATION (SSC) Overview 2012• Strong organic growth in China, South America,Africa and Eastern ...
31INDUSTRIAL SERVICES (IND) Overview 2012• Strong organic growth of 9.5%, driven by Asia,Australasia, Middle East and Afr...
32ENVIRONMENTAL SERVICES (ENVI) Overview 2012• Continued growth in most operations driven bynatural resources extraction ...
33AUTOMOTIVE SERVICES (AUTO) Overview 2012• Statutory business provided solid results in WesternEurope, Africa, North and...
34GOVERNMENTS AND INSTITUTIONS SERVICES (GIS) Overview 2012• Very strong organic growth of 17.3% driven by theincreasing ...
352013 INVESTOR HIGHLIGHTSFinancial community – 17 January 2013
36WWW.SGS.COM©SGSSA2013.ALLRIGHTSRESERVED.
SGS Group Results 2012
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SGS Group Results 2012

  1. 1. 2Financial community – 17 January 2013BUSINESSOVERVIEW CONTENT FINANCIAL HIGHLIGHTS2012 HighlightsRevenue AnalysisOperating Income AnalysisCash FlowsCurrency AnalysisSecond Half 2012 BUSINESS OVERVIEWFINANCIALHIGHLIGHTS
  2. 2. 3Financial community – 17 January 2012
  3. 3. 4HIGHLIGHTS Revenue growth of 16.3% to CHF 5.6 billion (historical rates)• 14.5% (constant currency) Organic revenue growth of 10.2% (constant currency) Adjusted Operating Income(1) up 12.9% (constant currency)to CHF 941 million resulting in a margin of 16.9% Adjusted Net Income(1) up 10.5% (constant currency)to CHF 630 million Restructuring costs net of tax of CHF 47 million Net Income for the period of CHF 556 million Basic EPS of CHF 72.97 per share Proposed dividend to shareholders of CHF 58 per share• Ordinary dividend of CHF 30 per share• Additional dividend of CHF 28 per shareFinancial community – 17 January 2013 1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs
  4. 4. 5FINANCIAL HIGHLIGHTS1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs2) Constant currency basisFinancial community – 17 January 2013CHF million 2012December2011December2011DecemberPro-forma(2)PublishedRevenue 5,578 4,874 4,797Change in % 14.5 % 16.3 %Adjusted Operating Income(1)941 833 815Change in % 12.9 % 15.4 %Adjusted Operating Income Margin (1)16.9 % 17.1 % 17.0 %Operating Income (EBIT) 843 808 790Change in % 4.3 % 6.7 %Adjusted Net Income(1)630 570 557Change in % 10.5 % 13.1 %Net Income 556 548 534Change in % 1.5 % 4.1 %Adjusted Basic EPS(1)(CHF) 82.65 73.53 75.24Basic EPS (CHF) 72.97 72.23 70.52
  5. 5. 6Financial community – 17 January 2013SERVICE PORTFOLIO1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costsAGRI6.5%MIN17.4%OGC14.8%LIFE1.8%CTS24.8%SSC7.8%IND10.7%ENVI3.6%AUTO6.7%GIS5.9%ADJUSTEDOPERATING INCOME(1)AGRI6.6%MIN15.6%OGC18.7%LIFE3.6%CTS16.8%SSC7.1%IND16.1%ENVI5.8%AUTO5.1%GIS4.6%REVENUEEUROPE /AFRICA /MIDDLE EAST47.1%AMERICAS24.4%ASIA PACIFIC28.5%REVENUE REGION
  6. 6. 7
  7. 7. 8Financial community – 17 January 2013REVENUE GROWTH COMPOSITIONRevenuesDecember 11 Organic Acquisitions DisposalsCurrencyimpactRevenuesDecember 124,797495209775,57810.2% 4.3% 0.0% 1.8% 16.3%Constant currency growth: 14.5%
  8. 8. 9Financial community – 17 January 2013LOCAL CURRENCY GROWTH BY BUSINESS10.2%17.3%4.6%6.6%9.5%6.2%10.8%0.9%11.6%13.8%11.0%4.3%1.8%6.6%10.7%2.1%2.9%0.6%10.4%1.3%TOTALGISAUTOENVIINDSSCCTSLIFEOGCMINAGRIOrganic Acquisition Disposal12.3%24.2%12.2%3.8%12.9%6.2%20.2%13.2%6.4%17.3%14.5%
  9. 9. 10Financial community – 17 January 2013REVENUE GROWTH AND HEADCOUNTCHANGE BY REGION10.2%10.7%12.6%8.8%4.3%0.9%15.5%1.3%TOTAL GROUPAsia / PacificAmericasEurope / Africa &Middle EastOrganic Acquisition Disposal10.1%28.1%11.6%14.5%Δ in EOP headcount 2012December2011DecemberΔGroup Headcount 79,268 71,220 8,048Organic Business Growth 4,738Acquisitions 3,310Disposals -Increase in Group Headcount 8,048By Region HeadcountΔHeadcountΔ%RevenuesΔ%Europe / Africa / Middle East 1,465 4.7 % 10.1 %Americas 4,436 30.9 % 28.1 %Asia / Pacific 2,147 8.3 % 11.6 %TOTAL 8,048 11.3% 14.5%
  10. 10. 11
  11. 11. 12Financial community – 17 January 2013ADJUSTED OPERATING INCOME(1) GROWTH1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costsOp. IncomeDecember 11 Organic Acquisitions DisposalsCurrencyimpactOp. IncomeDecember 128158028189419.5% 3.4% 0.0% 2.5% 15.4%Constant currency growth: 12.9%
  12. 12. 13Financial community – 17 January 2013HISTORICAL MARGIN PROGRESSION1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs5.0%10.0%15.0%20.0%25.0%Adjusted EBITDA MARGIN(1)DEC 08 DEC 09 DEC 10 DEC 11 DEC 1221.3% 22.0% 22.4% 21.3% 21.4%-5.0%10.0%15.0%20.0%Adjusted OPERATING MARGIN(1)DEC 08 DEC 09 DEC 10 DEC 11 DEC 1217.0% 17.4% 17.8% 17.0% 16.9%
  13. 13. 14Financial community – 17 January 2013ADJUSTED OPERATING MARGIN(1) BY BUSINESS1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs15.7%19.4%13.5%10.8%25.3%18.7%10.7%9.4%21.9%23.4%16.6%18.8%13.3%8.7%24.9%18.7%11.2%10.6%22.1%21.5%5.0%10.0%15.0%20.0%25.0%30.0%AGRIMINOGCLIFECTSSSCINDENVAUTOGISDecember 11 December 12
  14. 14. 15RESTRUCTURING COSTSFinancial community – 17 January 2013AGRI1.0%MIN7.1%OGC10.3%LIFE41.5%CTS6.3%SSC4.6%IND12.8%ENVI13.2%AUTO3.2%RESTRUCTURINGBY BUSINESSACTIVITYCLOSURES5.3%LOCATIONCLOSURES51.2%COSTOPTIMISATION43.5%RESTRUCTURINGBY TYPEEUROPE /AFRICA /MIDDLE EAST83.9%AMERICAS13.2%ASIA PACIFIC2.9%RESTRUCTURING2012 BY REGION
  15. 15. 16CASH FLOWFinancial community – 17 January 2013CHF million Dec 12 Dec 11PROFIT FOR THE PERIOD 590 561Non-cash items 493 433Depreciation, amortisation and impairment 281 225Share based payments 14 15Tax 218 203Other (20) (10)(Increase)/decrease in working capital (73) (84)Taxes paid (210) (220)OPERATING CASH FLOW 800 690Net (purchase)/sale of fixed assets (377) (337)Acquisition of businesses (182) (112)Other from investing activities - 6CASH FLOW FROM INVESTING ACTIVITIES (559) (443)Dividend paid to equity holders of SGS SA (497) (494)Dividend paid to non-controlling interests (24) (16)Acquisition of non-controlling interests - (2)Net cash received/(paid) on treasury shares 76 (50)Interest paid (46) (21)Net flows on interest rate swaps 37 -(Decrease)/increase in borrowings (12) 716CASH FLOW FROM FINANCING ACTIVITIES (466) 133Currency translations (5) 16INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (230) 396
  16. 16. 17Financial community – 17 January 2013CAPITAL EXPENDITUREAGRI5.9%MIN23.3%OGC19.6%LIFE4.9%CTS21.2%SSC1.3%IND8.3%ENVI5.4%AUTO2.6%GIS7.5%CAPEXBUSINESSEUROPE /AFRICA /MIDDLE EAST43.4%AMERICAS22.0%ASIA PACIFIC34.6%CAPEX REGION100200300400Capital Expenditure Depreciation & amortisation2007 2008 2009 2010 2011 2012ANNUAL CAPEXCHF million
  17. 17. 18Financial community – 17 January 2013FOREIGN CURRENCY REVENUES 20122012 2011 ChangeEUR 1.2055 1.2334 (2.3)%USD 0.9380 0.8868 5.8 %CNY 0.1487 0.1372 8.4 %AUD 0.9712 0.9144 6.2 %CAD 0.9384 0.8968 4.6 %GBP 1.4863 1.4210 4.6 %TWD 0.0317 0.0302 5.1 %CLP 0.0019 0.0018 5.1 %HKD 0.1209 0.1139 6.1 %BRL 0.4819 0.5306 (9.2)%AVERAGE RATESEUR28.4%USD14.3%CNY9.8%AUD5.8%CAD4.7%GBP3.0%TWD2.8%CLP2.8%HKD2.5%Other25.9%
  18. 18. 19Financial community – 17 January 2013FOREIGN CURRENCY SENSITIVITY ANALYSISEURO 1.17 1.21 1.24Revenues (47) 0 45Income (4) 0 4USD 0.91 0.94 0.97Revenues (24) 0 27Income (2) 0 2CNY 0.14 0.15 0.16Revenues (32) 0 42Income (10) 0 13
  19. 19. 20
  20. 20. 21Financial community – 17 January 2013FINANCIAL HIGHLIGHTS (H2)1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs2) Constant currency basisCHF million 2012H22011H22011H2Pro-forma(2)PublishedRevenue 2,927 2,571 2,452Change in % 13.9 % 19.3 %Adjusted Operating Income(1)528 465 441Change in % 13.5 % 19.7 %Adjusted Operating Income Margin (1)18.0 % 18.1 % 18.0 %Operating Income (EBIT) 470 451 427Change in % 4.2 % 10.1 %Adjusted Net Income(1)354 319 301Change in % 11.0 % 17.6 %Net income 311 307 288Change in % 1.3 % 8.0 %
  21. 21. 22Financial community – 17 January 2013LOCAL CURRENCY GROWTH BY BUSINESS (H2)9.3%14.5%3.9%7.5%9.9%6.3%10.3%4.4%12.0%8.1%9.1%4.6%0.5%7.2%11.8%2.5%4.7%0.6%9.9%1.7%TOTALGISAUTOENVIINDSSCCTSLIFEOGCMINAGRIOrganic Acquisition Disposal10.8%18.0%12.6%9.1%12.8%6.3%21.7%14.7%4.4%14.5%13.9%
  22. 22. 23Financial community – 17 January 2013ADJUSTED OPERATING MARGIN(1) BYBUSINESS (H2)17.5%20.3%14.1%11.2%26.9%20.1%10.7%10.4%23.8%23.4%18.5%19.2%14.3%9.4%26.9%20.2%12.6%12.9%22.3%20.3%5.0%10.0%15.0%20.0%25.0%30.0%AGRIMINOGCLIFECTSSSCINDENVAUTOGISDecember 11 December 121) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs
  23. 23. 24
  24. 24. 25AGRICULTURAL SERVICES (AGRI) Overview 2012• Strong organic growth of 11.0%, driven by positivemarkets for Trade Services; including grain exportsfrom Eastern Europe, India and Latin America.• Additional growth from full year impact of 2011acquisitions plus WareCare (Pest Management) andGravena (Contract Research) closed in 2012.• Almost 30% growth in seed and crop services,supported by acquired expertise and geographicalreplication throughout the network.• Successful commissioning of our flagship FoodSafety and Cold Chain facility in India. Client uptakeand market feedback positive. Outlook• Black Sea export volumes lower in H1, partiallyoffset by other origins. Crop forecasts indicaterecovery in H2.• Double digit growth for seed and crop, especiallyprecision farming and contract research. Expansionfocused on South America, Africa and Asia Pacific.• New revenues from support services to farmingprojects in Africa. Investments in Food Safetyfacilities and technical services for plant breeding.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 369.5 329.0 327.1Change in % 12.3 13.0Adj. Operating Inc.(1)61.3 51.8 51.2Change in % 18.3 19.7Margin %116.6 15.7 15.7(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  25. 25. 26MINERALS SERVICES (MIN) Overview 2012• Strong markets and focused sales activity resultedin 24.2% revenue growth (13.8% organic).• CIMM integration well underway and marginimprovements ahead of plan.• Exceptional growth in Africa, Asia and the Americas.• All segments of the service portfolio delivered strongorganic growth.• Slowdown in coal and iron ore impacted mainlyAustralia in H2.• Key project wins include– Nui Phao on-site laboratory (Vietnam)– Base Resources on-site laboratory (Kenya) Outlook• Integration of E&S Engineering Solutions acquisition.• Expect some slowdown in certain commoditymarkets.• 9 new onsite lab and 3 commercial labs willcommence operations in 2013.• Financing for greenfield exploration projects will bedifficult in the early part of the year.• Continued focus on sales process, quality and back-office efficiencies.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 868.0 698.7 677.7Change in % 24.2 28.1Adj. Operating Inc.(1)163.3 135.5 131.2Change in % 20.5 24.5Margin %118.8 19.4 19.4(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  26. 26. 27OIL, GAS & CHEMICALS SERVICES (OGC) Overview 2012• Strong organic growth of 11.6% sustained by solidtrade related services with both volume increasesand market share gains.• Outstanding growth in Upstream Services fromAustralia and Papua New Guinea onshore marketand subsurface consultancy / reserves validation.• Exceptional growth in Plant & Terminal Operationsand Cargo Treatment Services, specifically in NorthAmerica, largely offsetting reduced volumes inEurope due to terminal and refinery closures.• Margin impacted by lower volumes in Europe andthe Caribbean. Outlook• Difficult trade market in Europe and the Caribbean toremain, offset by growth in Asia and Middle East.• Continued growth in Upstream from unconventionalresources segment (shale oil and gas, biogas, tightgas, coal bed methane), Metering and Allocationprojects, as well as Cased Hole Services.• Increased gas production leading to strong growth inSGS GasPro™ Solutions and synergies withEnvironmental, Minerals and Industrial services.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 1,046.0 932.0 911.7Change in % 12.2 14.7Adj. Operating Inc.(1)139.2 126.0 123.3Change in % 10.5 12.9Margin %113.3 13.5 13.5(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  27. 27. 28LIFE SCIENCE SERVICES (LIFE) Overview 2012• Double-digit organic revenue growth in laboratoryservices offset by weak Clinical Research results.• Laboratory growth driven by expansion in:– Europe, led by the UK biologics laboratories– North America, with fully renovated QC facilities– Asia, with new state-of-art Mumbai laboratory• Full integration of Vitrology completes the Biologicsservice offering, adding Biosafety and synergies withM-Scan.• Weak results in early phase Clinical Research dueto limited number of molecules reaching trial stage. Outlook• Early phase clinical research market expected toremain weak resulting in the intended closure of theParis clinic.• Expansion of the global key account strategy toaddress the needs of large pharmaceuticalcompanies.• Further synergies expected from the integration ofnewly acquired biopharmaceutical service offerings.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 199.3 192.1 192.0Change in % 3.7 3.8Adj. Operating Inc.(1)17.3 20.8 20.7Change in % (16.8) (16.4)Margin %18.7 10.8 10.8(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  28. 28. 29CONSUMER TESTING SERVICES (CTS) Overview 2012• Strong organic revenue growth of 10.8% driven byAsia, South America, Eastern Europe and MiddleEast across the portfolio of activities.• Major contributors are Softlines, E&E and Foodthanks to further development of strategic accounts,market share gains and capacity expansion in newgeographies to align with client strategies.• Margin below prior year reflecting some labour costincreases in Asia as well as continued investmentsin new market segments and acquisitions not yetperforming to expectations. Outlook• Expanded capabilities in developing marketsegments (E&E, Auto) and new segments of activitywill drive growth in 2013.• Continued strong growth in South America and Asiaexpected to continue at current pace.• Western Europe expected to grow but at a lowerrate due to current economic conditions.• Focus on productivity efficiency programmes.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 936.2 829.1 802.0Change in % 12.9 16.7Adj. Operating Inc.(1)233.0 213.3 202.7Change in % 9.2 14.9Margin %124.9 25.7 25.3(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  29. 29. 30SYSTEMS & SERVICES CERTIFICATION (SSC) Overview 2012• Strong organic growth in China, South America,Africa and Eastern Europe, partly offset by difficultEuropean markets, particularly in Spain and Italy.• Ongoing focus on efficiency improvements inresponse to an increasingly competitiveenvironment.• Weak performance in Australia due to the loss of animportant contract within the mining industry.• New developments in training and second partyaudit services becoming an increasing source ofrevenue. Outlook• Expect solid growth across most markets,particularly in Asia, Eastern Europe and theAmericas, while Europe expected to remain weak.• Further diversification of service portfolio within thetraining and second party audit segments.• Cost optimisation with development of new ITplatform to better respond to market needs.• Improved performance of Italy and Australia thanksto 2012 restructuring.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 394.9 372.0 364.0Change in % 6.2 8.5Adj. Operating Inc.(1)73.7 70.3 68.2Change in % 4.8 8.1Margin %118.7 18.9 18.7(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  30. 30. 31INDUSTRIAL SERVICES (IND) Overview 2012• Strong organic growth of 9.5%, driven by Asia,Australasia, Middle East and Africa.• Margin stabilised despite pressure in Europe asinvestment projects are delayed.• Continued restructuring to align organisationalstructure to the new market conditions in Europe.• Five acquisitions closed in 2012, mainly benefittingthe South American and African regions.• New organisation based on 4 strategic businessunits: Oil & Gas; Power & Utilities; Infrastructure &Building; Transport, Equipment & Machinery. Outlook• Limited organic growth expected in Europe whileother regions perform well (Americas, Asia andAfrica).• Growth in the Oil & Gas segment expected mainlyin North America while growth in the Infrastructure &Building segment expected in South America.• Investments in materials testing capabilities willbecome operational in 2013.• Focus on margin improvements remains key.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 898.6 747.8 747.0Change in % 20.2 20.3Adj. Operating Inc.(1)100.3 80.1 80.0Change in % 25.2 25.4Margin %111.2 10.7 10.7(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  31. 31. 32ENVIRONMENTAL SERVICES (ENVI) Overview 2012• Continued growth in most operations driven bynatural resources extraction (minerals and oil & gas)and renewable sector development.• Accelerated market penetration through successfulacquisitions in USA, Brazil and Australia.• Full service solution (field, lab and studies)increased customer retention and profit optimisation.• Strong development in Africa with feeder labnetwork and support team located in South Africa.• European market remains tough, impacting growthand margin. Outlook• Continued growing demand for full service solutionsdriven by legislation and development projects bothin traditional and unconventional resources markets.• Further development of geographical footprint andgrowth in emerging markets (Latin America, Africa,Eastern Europe).• Increased demand for waste water & sludge testingfrom retailers and textile manufacturers.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 322.7 285.0 283.8Change in % 13.2 13.7Adj. Operating Inc.(1)34.3 26.9 26.8Change in % 27.5 28.0Margin %110.6 9.4 9.4(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  32. 32. 33AUTOMOTIVE SERVICES (AUTO) Overview 2012• Statutory business provided solid results in WesternEurope, Africa, North and South America. New RoadSafety related services rolled out in Kenya.• As anticipated, commercial activities in the USAnegatively impacted by significantly lower volumes.• Certified-Pre-Owned audits extended for Volvo andFord.• Secured tender for Identity Authentication Servicesas part of the driver’s license programme in Ireland.• Strong engine testing results in the USA with vehicletesting picking up in Q4. Outlook• Statutory business will continue to provide solidresults.• Commercial inspection volumes expected to pick upin 2013 with further increase in 2014.• Several opportunities being pursued in the statutoryfield in Asia, Africa, North and South America.• Expanding Road Safety services and commercialaudit activities.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 286.9 269.7 270.2Change in % 6.4 6.2Adj. Operating Inc.(1)63.4 58.5 59.3Change in % 8.4 6.9Margin %122.1 21.7 21.9(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  33. 33. 34GOVERNMENTS AND INSTITUTIONS SERVICES (GIS) Overview 2012• Very strong organic growth of 17.3% driven by theincreasing scale of Product Conformity Assessment(PCA) programmes.• Pre-Shipment Inspection volumes remained solidand stable on all programmes, including a renewedprogramme for Haiti.• Strong performance for TradeNet in Ghana andMadagascar and excellent start for Mozambique.• First ever Forestry monitoring programme withscanners implemented in Democratic Republic ofCongo (DRC).• New Telecom Monitoring in Rwanda and Uganda. Outlook• Continued growth from PCA programmes.• Termination of Nigeria Destination Inspectioncontract with limited impact on operating income.• Complete deployment of TradeNet in Mozambique.• Complete implementation of new mandates:• DRC and Congo (Forestry),• Ghana (Ghana Revenue Authority).• New contracts for cargo tracking and telecomsmonitoring.CHF million December2012December2011December2011Pro-forma2PublishedRevenue 256.0 218.3 221.7Change in % 17.3 15.5Adj. Operating Inc.(1)55.1 50.0 51.8Change in % 10.2 6.4Margin %121.5 22.9 23.4(2)Constant currency basis(1)Before amortisation of acquisition intangibles, restructuring, transactionand integration-related costsFinancial community – 17 January 2013
  34. 34. 352013 INVESTOR HIGHLIGHTSFinancial community – 17 January 2013
  35. 35. 36WWW.SGS.COM©SGSSA2013.ALLRIGHTSRESERVED.

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