Enabling a better, safer and more interconnected world2021 Annual Reports

Our key success factor remains the dedication and dynamism of our colleagues. It is through their hard work and commitment to supporting our customers that SGS has delivered another strong operational performance.

Annual Report

Letter to Stakeholders

SGS Executives

Implementing the next phase of our strategic evolution in 2021 is increasing the cooperation and agility across our global network. This is helping us leverage our expertise and competence, specifically in our key focus areas, and is making SGS more digital and sustainable.

Dear Stakeholders,

We were excited to start the implementation of our new strategic plan at the beginning of this year, and we have already made significant progress in deploying it across our network.

The strategic plan puts a renewed emphasis on market leadership through: digital innovation, ‘thinking sustainably’, including further integrating our non-financial and financial objectives. It also aligns SGS more explicitly to the five key TIC growth megatrends of: Connectivity, Nutrition, Health & Wellness, Sustainability & Climate, Infrastructure, and Consumer Empowerment.

We also launched our Corporate Sustainability Ambitions 2030, including our most challenging targets yet for 2023 and 2030. These are directly linked to our strategic evolution span our entire value chain, and are factored into our capital allocation and management remuneration.

Our people, our colleagues remain our key success factor and their energy and passion makes us unique. It is through their hard work and commitment to supporting our customers, that SGS has delivered another strong operational performance in 2021. At the same time, they continue to deal with personal and professional Covid-related challenges, and regrettably, for some, tragedies in their personal lives.

We are making significant investment in our employees and platform to reinforce our leadership positions in the TIC industry and build a thriving future for SGS. As we continue to execute our strategy, we are evolving into an even more sustainable, digital and data-driven company, fully capable of supporting our commitment to enabling a better, safer and more interconnected world for all our stakeholders.

Read more in our reports:

2021 Integrated Report
2021 Corporate Sustainability report

Our Five Divisions Aligned to Key TIC Megatrends

Our five divisions are closely aligned to the key TIC megatrends to better service our customers and to anticipate future demand.

Focusing investment in Connectivity to increase our competitive advantage.

Capex intensity
Net working capital intensity
Return profile
M&A appetite
High in Connectivity

Strategic objectives 2023 and beyond

  • Consolidate our leading market position
  • Leverage market growth supported by the proliferation of 5G technology and loT devices
  • Continue to build cybersecurity expertise as an integral part of our ‘total solution’
  • Focus on automotive and semiconductor industries as key opportunities
  • Continue to lead the expansion of the domestic Chinese market
  • New data services to generate first revenue by 2022

Progress during the year

  • Acquired Brightsight, which materially accelerates our global strategy to become the global TIC leader in cybersecurity
  • Connectivity & Products expanded its reach into the automotive sector with growth accelerated with the sector recovery
  • Expanded our lab capacity in 5G technology, loT device and semiconductor global network in China, Taiwan, Korea, Japan, Singapore, Vietnam, India and Germany
  • Launch of several new digital services including Truum, an e-commerce data verification service with large retail customers and the use of robotic processes to simulate consumer behavior for product performances