HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW HIGHLIGHTS OUTLOOK Q&A APPENDIX

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2 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 factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements. These statements speak only as of the date of this document. Except as required by any applicable law or regulation, SGS expressly disclaims any obligation to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in SGS Group s expectations with regard thereto or any change in events or conditions on which any such statements are based. 2

3 HIGHLIGHTS FINANCIAL REVIEW HIGHLIGHTS BUSINESS REVIEW OUTLOOK Q&A APPENDIX

4 H HIGHLIGHTS (1) Constant currency basis - (2) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (3) Cash flow from operating activities less Capex 4

5 H ACQUISITIONS ACQUISITIONS (so far ) 5

6 85,000 EMPLOYEES AROUND THE GLOBE ENABLING REACH AND LOCAL SUPPORT 6

7 HIGHLIGHTS REVENUE ANALYSIS OPERATING INCOME ANALYSIS REVENUE ANALYSIS BALANCE SHEET CASH FLOW CURRENCY ANALYSIS OTHER TOPIC FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

8 H FINANCIAL HIGHLIGHTS CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE 2,752 2,661 2,805 Change in % 3.4% (1.9)% ADJUSTED OPERATING INCOME (1) Change in % 3.2% (2.0)% ADJUSTED OPERATING INCOME MARGIN (1) 15.0% 15.0% 15.0% OPERATING INCOME (EBIT) Change in % (11.4)% (16.1)% OPERATING INCOME (EBIT) MARGIN 12.1% 14.1% 14.1% ADJUSTED NET INCOME (1) Change in % 5.8% 0.0% NET INCOME Change in % (11.2)% (16.1)% BASIC EPS (CHF) (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 8

9 H REVENUE GROWTH COMPOSITION 1.8% 1.6% (0.0)% (5.3)% (1.9)% CHF MIO (144) Constant currency growth: 3.4% 2,805 2,752 Revenues JUNE 2014 Organic Acquisitions Disposals Currency impact Revenues JUNE 2015 H % 1.3% 0.0% (7.1)% (1.8)% 9

10 H BUSINESS PORTFOLIO 10

11 H REVENUE GROWTH (1) BY BUSINESS GROWTH H H AGRI 3.2% 3.2% 8.1% MIN (1.9)% (1.9)% (6.0)% OGC 0.2% 0.2% 8.9% LIFE 0.4% 0.4% 7.9% CTS 4.8% 0.9% 5.7% 7.3% SSC 6.6% 6.6% 5.7% IND (3.3)% 0.7% (2.6)% 8.3% ENVI 5.2% 19.7% 24.9% 2.1% AUTO 6.6% 5.8% 12.4% 5.3% GIS 8.4% 8.4% 2.9% TOTAL 1.8% 1.6% 3.4% 5.3% Organic Acquisition Disposal 1) Constant currency basis 11

12 H REVENUE GROWTH (1) BY REGION REVENUE S GROWTH H H REVENUE S EUROPE / AFRICA & MIDDLE EAST 2.7% 2.2% 4.9% 3.5% REVENUE S ASIA AMERICAS 1.4% 2.1% 3.5% 7.2% ASIA / PACIFIC 1.0% 0.2% 1.2% 6.9% TOTAL GROUP 1.8% 1.6% 3.4% 5.3% Organic Acquisition Disposal 1) Constant currency basis 12

13 EVOLUTION OF HEADCOUNTS Δ IN EOP HEADCOUNT JUNE 2015 JUNE 2014 Δ GROUP HEADCOUNT 85,502 83,592 1,910 Organic Business Growth 2,660 Acquisitions 565 Disposals and Restructurings (1,315) INCREASE IN GROUP HEADCOUNT 1,910 BY REGION HEADCOUNT Δ HEADCOUNT Δ% REVENUES Δ% Europe / Africa / Middle East % 4.9% Americas % 3.5% Asia / Pacific % 1.2% TOTAL 1, % 3.4% 13

14 HIGHLIGHTS REVENUE ANALYSIS FINANCIAL REVIEW OPERATING INCOME ANALYSIS OPERATING BALANCE INCOME SHEET ANALYSIS CASH FLOW BUSINESS REVIEW CURRENCY ANALYSIS OUTLOOK Q&A APPENDIX

15 H ADJUSTED OPERATING INCOME (1) GROWTH 1.1% 2.1% (0.0)% (5.2)% (2.0)% CHF MIO 4 9 (21) 420 Constant currency growth: 3.2% 412 Adj. Op. Inc. June 2014 Organic Acquisitions Disposals Currency impact Adj. Op. Inc. June 2015 H % 1.4% 0.0% (9.1)% (4.2)% (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs 15

16 AGRI MIN OGC LIFE CTS SSC IND ENVI AUTO GIS 14.8% 13.8% 11.1% 8.2% 23.4% 16.0% 11.0% 7.8% 19.8% 22.6% 8.6% 10.8% 11.1% 13.3% 15.3% 14.5% 12.9% 18.1% 22.3% 23.4% H ADJUSTED OPERATING INCOME (1) PORTFOLIO AND ADJUSTED OPERATING MARGIN (2) BY BUSINESS 25.0% 20.0% 15.0% 10.0% 5.0% JUNE 2014 JUNE 2015 (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 16

17 H RESTRUCTURING 17

18 HIGHLIGHTS BALANCE SHEET REVENUE ANALYSIS OPERATING INCOME ANALYSIS BALANCE SHEET CASH FLOW CURRENCY ANALYSIS OTHER TOPIC FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

19 H CONSOLIDATED BALANCE SHEET CHF MIO ASSETS JUNE 2015 DEC 2014 SHAREHOLDERS' EQUITY AND LIABILITIES JUNE 2015 DEC 2014 Land, buildings and equipment 925 1,043 Share capital 8 8 Goodwill 1,012 1,105 Reserves 1,559 2,319 Intangible assets SHAREHOLDERS' EQUITY 1,567 2,327 Other Long-term assets NON-CURRENT ASSETS 2,784 2,648 NON-CONTROLLING INTERESTS Long-term loans 2,216 1,672 Provisions and other liabilities NON-CURRENT LIABILITIES 2,518 2,019 Unbilled revenues and inventories Trade accounts and notes receivable 910 1,068 Accounts payable Other receivables and prepayments Other creditors and accruals Marketable securities 9 9 Loans 5 18 Cash and cash equivalents 1,043 1,341 CURRENT LIABILITIES 1,291 1,345 CURRENT ASSETS 2,668 3,119 LIABILITIES 3,809 3,364 TOTAL 5,452 5,767 TOTAL 5,452 5,767 19

20 H NET WORKING CAPITAL MOVEMENT 20

21 HIGHLIGHTS CASH FLOW REVENUE ANALYSIS OPERATING INCOME ANALYSIS BALANCE SHEET CASH FLOW CURRENCY ANALYSIS OTHER TOPIC FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

22 H CONDENSED CASH FLOW CHF MIO JUNE 2015 JUNE 2014 PROFIT FOR THE PERIOD Non-cash items Decrease/(increase) in working capital 9 (180) Taxes paid (110) (97) CORE OPERATING CASH FLOW Non-recurring cash outflows (103) 0 CASH FLOW FROM OPERATING ACTIVITIES Net (purchase) of fixed assets (123) (123) Net (acquisition) of businesses (41) (17) Investments in long-term bank deposits (310) 0 Other from investing activities 8 1 CASH FLOW FROM INVESTING ACTIVITIES (466) (139) Dividends paid to equity holders of SGS SA (522) (499) Dividends paid to non-controlling interests (2) (2) Net cash (paid)/received on treasury shares (144) 31 Proceeds of corporate bonds Interest paid (34) (28) Net flows on interest rate swaps 16 5 (Decrease) in borrowings (12) (3) CASH FLOW FROM FINANCING ACTIVITIES (149) (134) Currency translation 21 (5) (DECREASE) IN CASH AND CASH EQUIVALENTS (298) (18) 22

23 H CORE OPERATING CASH FLOW CAPEX IN CHF MIO NON-RECURRING CASH OUTFLOWS IN CHF MIO FREE CASH FLOW (1) IN CHF MIO CORE OPERATING CASH FLOW IN % OF REVENUE 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% (1) Cash flow from operating activities less Capex 23

24 H CAPITAL EXPENDITURE 24

25 HIGHLIGHTS REVENUE ANALYSIS OPERATING INCOME ANALYSIS CURRENCY BALANCE ANALYSIS SHEET CASH FLOW CURRENCY ANALYSIS OTHER TOPIC FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

26 H FOREIGN CURRENCY REVENUES 26

27 FOREIGN CURRENCY AVERAGE RATE CHANGE H VERSUS H RATE 7.0% 6.5% 5.5% 4.0% 3.1% 1.6% 1.0% (2.0)% (5.0)% (8.0)% (2.8)% (5.4)% (5.2)% (11.0)% (8.9)% (14.0)% (17.0)% (20.0)% (13.2)% (17.3)% EUR USD CNY AUD GBP CAD TWD BRL KRW CLP CHANGE (13.2)% 6.5% 5.5% (8.9)% (2.8)% (5.4)% 3.1% (17.3)% 1.6% (5.2)% 27

28 FINANCIAL SUMMARY Revenue growth of 3.4% despite decline in two of our four largest businesses. Maintained Adjusted Operating Margin (1) flat at 15.0%. Restructuring undertaken to lower the cost base going forward. Improvement of free cash flow by 26.2% to CHF 164 million. Investment of CHF 173 million in Capex / Acquisitions. (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs 28

29 HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

30 AGRICULTURAL SERVICES (AGRI) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 3.2% (4.2)% ADJUSTED OPERATING INCOME (1) Change in % 6.9% (1.5)% MARGIN % (1) 15.3% 14.8% 14.9% OVERVIEW Sustained growth despite the curtailment of CMA activities Seed & Crop portfolio expansion Double-digit growth in Laboratory New contract with Centro de Tecnologia Canavieira for field evaluation of GM Sugarcane Trade activities to remain stable New water management services to be introduced in selected countries South America Seed & Crop investments coming online Peru Fish ban lifted with reduced scope OUTLOOK (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 30

31 MINERALS SERVICES (MIN) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % (1.9)% (7.8)% ADJUSTED OPERATING INCOME (1) Change in % (5.7)% (13.1)% MARGIN % (1) 13.3% 13.8% 14.1% OVERVIEW Revenues decline at slower rate with stable growth in Trade inspections Geo-Chemistry and Metallurgy volumes remain low Strong performance in East Europe and Asia New onsite laboratory for Pavlik Gold in Russia OUTLOOK Low exploration spending to continue Demand for steel and steel making raw materials to remain low Alignment of costs and network consolidation, IT solutions to boost productivity Focus on delivering Mine & Plant Services (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 31

32 OIL, GAS & CHEMICALS SERVICES (OGC) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 0.2% (3.8)% ADJUSTED OPERATING INCOME (1) Change in % (2.6)% (10.3)% MARGIN % (1) 10.8% 11.1% 11.6% OVERVIEW Trade-related services benefited from the high volatility of oil price Strong decline in Upstream business Growth in Oil Condition Monitoring from high sample volume in Asia Pacific and Middle East Oxy Oman: Two-year well testing contract OUTLOOK Growth in laboratory outsourcing from project in India New Fuel Integrity Programmes to be implemented in Africa Well testing services and sub-surface consultancy trend expected to remain in line with H1 (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 32

33 LIFE SCIENCE SERVICES (LIFE) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 0.4% (6.8)% ADJUSTED OPERATING INCOME (1) Change in % 4.9% (4.4)% MARGIN % (1) 8.6% 8.2% 8.4% OVERVIEW Strong results in Laboratories Key growth investments in Italy, India and USA Expanded service offerings in USA, France and China Margins impacted by Clinical research Ebola vaccine testing for a pharmaceutical company OUTLOOK Growth to continue in Laboratories services with increasing volume and improved margin Further focus on Key Account Management and Sales structures to maintain pipeline Additional investment in new scope and capacities across most laboratories (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 33

34 CONSUMER TESTING SERVICES (CTS) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 5.7% 4.6% ADJUSTED OPERATING INCOME (1) Change in % 0.7% 2.8% MARGIN % (1) 22.3% 23.4% 22.7% OVERVIEW Resilient growth despite market conditions Double-digit growth in wireless/mobile device, automotive parts testing with new models and products and excellent growth in CPCH Strong Food growth due to consumer focus on food safety and recalls Acquisition of SVA Ltd. expands testing scope and footprint in the Food sector OUTLOOK E&E to keep growing from recent investments in Wireless and Bluetooth Secure new retailers in the USA and South America Growth in Automotive, Food and CPCH segments in Asia from strong local markets and local regulations (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 34

35 SYSTEMS & SERVICES CERTIFICATION (SSC) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 6.6% 1.5% ADJUSTED OPERATING INCOME (1) Change in % (3.4)% (6.3)% MARGIN % (1) 14.5% 16.0% 15.7% OVERVIEW Healthy growth of 6.6% driven by training activity and management system certification Solid global performance, especially Africa Cost pressure from increasing labour costs in China Several new contracts secured with leading hotel groups OUTLOOK Growth is expected to remain at same level during H2 Margin expected to recover following one-off training and system setup costs in H1 Continue to expand centralised back-office activities to improve quality and efficiencies (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 35

36 INDUSTRIAL SERVICES (IND) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % (2.6)% (9.7)% ADJUSTED OPERATING INCOME (1) Change in % (1.7)% (6.9)% MARGIN % (1) 11.1% 11.0% 10.8% OVERVIEW Oil prices impact revenues in the Americas, and in South East Asia Pacific Solid double-digit growth in China and Korea Margin remained stable reflecting cost adjustments made during the past months In Mexico, SGS is successfully executing the Toluca Rail construction supervision project OUTLOOK Revenues in H2 remain flat versus prior year Successful renewal of major NDT contracts in Angola and Qatar Accelerate strategic investments in fast growth countries especially China Margin to remain under pressure, the Group will implement restructuring during H2 (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 36

37 ENVIRONMENTAL SERVICES (ENVI) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 24.9% 15.0% ADJUSTED OPERATING INCOME (1) Change in % 106.4% 86.1% MARGIN % (1) 12.9% 7.8% 8.0% OVERVIEW Strong growth, increased market share and margin improvement Benefit from recent acquisitions, expanded footprint in Australia and Brazil Leader in Industrial Hygiene (IH) testing in the USA Significant project with ENI for testing deepwater reservoirs OUTLOOK Europe to benefit from diversified portfolio and acquired businesses Growth in Health & Safety (H&S) and IH sectors will accelerate the Americas and Asia Global launch of innovative products Positive impact of high-value contracts signed in H1 (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 37

38 AUTOMOTIVE SERVICES (AUTO) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 12.4% 3.1% ADJUSTED OPERATING INCOME (1) Change in % 2.6% (8.9)% MARGIN % (1) 18.1% 19.8% 20.5% OVERVIEW Solid results in Statutory Inspection despite liberalization in Canary Islands Laboratory expansion and overall strong performance in the USA Acquisitions in USA & France to expand services and footprint Exclusive Motor Vehicle Inspection Program awarded in Uganda OUTLOOK Pressure on profitability in Spain with increasing competition in Canary Islands Operations in Africa and North America expected to continue on positive trend Inspection volumes expected to further increase in Buenos Aires City and Guayaquil (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 38

39 GOVERNMENTS AND INSTITUTIONS SERVICES (GIS) PERFORMANCE CHF MIO JUNE 2015 JUNE 2014 JUNE 2014 PRO-FORMA (2) REVENUE Change in % 8.4% 1.2% ADJUSTED OPERATING INCOME (1) Change in % 12.3% (0.3)% MARGIN % (1) 23.4% 22.6% 23.8% OVERVIEW Good growth with excellent performance in PCA and Single Window Launch of SGS e-valuator All contracts due for renewal successfully renewed World Bank contract in Nepal to supervise design and implementation of a national single window and Trade Portal OUTLOOK Establish GIS Telecom Solutions Expand client base into new Government service areas Significant growth in Europe and Americas As anticipated, PSI likely to decline based on WCO/WTO guidance (1) Before amortisation of acquisition intangibles, restructuring, transaction and integration-related costs - (2) Constant currency basis 39

40 HIGHLIGHTS FINANCIAL REVIEW OUTLOOK BUSINESS REVIEW OUTLOOK Q&A APPENDIX

41 H OUTLOOK (1) at stable market conditions 41

42 SGS INVESTOR DAYS 42

43 HIGHLIGHTS FINANCIAL REVIEW Q&A BUSINESS REVIEW OUTLOOK Q&A APPENDIX

44 HIGHLIGHTS FINANCIAL REVIEW APPENDIX BUSINESS REVIEW OUTLOOK Q&A APPENDIX

45 ACRONYMS AND OTHER ABBREVIATIONS CMA: CPCH: E&E: H&S: IH: NDT: PCA: PSI: Collateral Management Activities Cosmetics, Personal Care and Household Electrical & Electronics Health & Safety Industrial Hygiene Non Destructive Testing Product conformity assessment Pre Shipment Inspection SGS e-valuator: Facilitate and enhance trade SGS Layer 4: Supporting the enforcement of telecommunications regulation 45

46 UPCOMING INVESTOR RELATIONS EVENTS 46

47 INVESTOR RELATIONS INFORMATION 47

48 SGS SA ALL RIGHTS RESERVED.