Profile

SGS provides tailored testing, inspection and certification solutions to its customers - making their commercial activities safer, greener and more efficient. Its worldwide network consists of 97,000 employees at 2,650 offices and laboratories.

14.5 %
Portfolio value 03/31/2023
27.9 %
Net dividend 12/31/2022
Investment case

The TIC sector is characterized by attractive fundamentals:

  • Global need for safety, security and traceability across industries
  • Expansion and ageing of infrastructure
  • Outsourcing of "control activities"
  • Continued development of regulations and compliance demands
  • Growing complexity of products
  • High barriers for entry
  • Multiple M&A opportunities.

In this sector, SGS offers a particularly attractive profile:

  • World market leader and #1 in most of its activities
  • Best in class profitability, returns and cashflow generation
  • Diversified portfolio of services and regions
  • Ideally positioned to take advantage of growth and consolidation opportunities
  • Resilient across economic cycles
  • Solid balance sheet in support of M&A and attractive shareholder remuneration.
  • Board of Directors 2/9*
  • Remuneration and Nomination Committee 1/3*