SGS is the world leader in inspection, verification, testing and certification
Share capital (09/30/2020) 18.9 %
Voting rights (09/30/2020) 18.9 %
Stake value (09/30/2020) € 3,272 M
Dividend (12/31/2019) € 87.2 M
Investment year
2013
Business area
Testing, Inspection and Certification (TIC)
Sales
CHF 6,600 M
Employees
94,000
Registered office
Geneva, Switzerland
 
Profile

SGS provides tailored inspection, verification, testing and certification solutions to its customers to make their commercial activities faster, simpler and more efficient. Its worldwide network consists of more than 94,000 employees at more than 2,400 offices and laboratories.

Portfolio value 09/30/2020
17.3 %
Net dividend 12/31/2019
17.9 %

Excluding the reimbursements by the French tax authorities of withholding taxes which had been applied to Total and ENGIE dividends

Investment case

The industry is characterised by high barriers to entry, fragmentation and attractive fundamentals:

  • Global need across industries for safety and traceability
  • Expansion and ageing of infrastructure
  • Outsourcing of activities
  • Development of regulations and compliance demands
  • Growing complexity of products
  • New digital growth areas including e-commerce
  • Consolidation in multiple sectors

In this sector, SGS offers a particularly attractive profile:

  • World leader
  • Best in class profitability, returns and cash flow generation
  • Diversified portfolio
  • Ideally positioned to take advantage of growth opportunities
  • Resilient across economic cycles
  • Board of Directors 3/10*
  • Audit Committee 1/4*
  • Remuneration and Nomination Committee 1/4*
  • Governance and Compliance Committee 1/4*