AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center...

33
ANNUAL REPORT - BUSINESS REVIEW

Transcript of AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center...

Page 1: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

AnnuAl report - business review

Page 2: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.
Page 3: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs is the world’s leAdinG inspection, verificAtion, testinG And certificAtion compAny. sGs is recoGnised As the GlobAl benchmArk for quAlity And inteGrity. with more thAn 75 000 employees, sGs operAtes A network of over 1 500 offices And lAborAtories Around the world. we Are continuAlly pushinG ourselves to deliver innovAtive solutions.innovAtions from sGs hAve trAnsformed the wAy businesses operAte. from our foundAtions creAtinG trust Across the GrAin trAdinG routes of europe, to developinG todAy’s cuttinG edGe technoloGies for the oil And GAs industry, we strive to provide independent And vAlued services thAt Go beyond our customers’ expectAtions.

04 sGs nvirocrop

10 sGs minerAls services

18 sGs Applied technoloGy & innovAtion center

28 sGs e-mobility

34 sGs vitroloGy

40 sGs intron

46 sGs environmentAl services

Page 4: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

32

When conceptualising the topic for this annual report, I immediately

thought of the quote by the late Steve Jobs: “Innovation distinguishes

between a leader and a follower.” It is a sentiment that is echoed in

my vision for SGS, and you will find that very quote, if you look closely

enough, on page 27 of this report. SGS has been innovating and leading

since 1878, when we transformed trading across Europe by offering

the first-of-its-kind grain auditing service.

Today, we are continuing to innovate solutions and services to help

businesses work smarter. We do this by listening to what our customers

need, and responding with a solution that makes an immediate difference.

I make sure this happens every day by asking the brightest minds at

SGS to deliver services that go beyond our customers’ expectations.

I encourage their innovation by giving our big thinkers the space, time and

freedom to do what they do best – lead. They lead everyone around them

in pursuit of new paths and opportunities to seek out the most beneficial

solutions for our customers.

I harness the power of our unique global network, and our intimate local

knowledge, by recognising innovation in the 75 000 employees and

1 500 offices and laboratories that make up SGS. This annual report

shows how SGS innovates new solutions in facilities from Australia to

Scotland. You will discover the benefits of our SGS services in sectors

as diverse as precision farming, green building and cell-based assays.

In reading the interviews of a few of our innovators, one thing will

become clear: SGS has unique abilities as an independent third-party

service provider, abilities unequalled in size or scope. Which is why,

in 2012, SGS continued to be the world’s leading inspection, verification,

testing and certification company.

christopher kirkChief Executive Officer

there is nothinG new About innovAtion At sGs

sGs innovAtors

our vision

We aim to be the most

competitive and the

most productive service

organisation in the world.

Our core competencies

in inspection, verification,

testing and certification

are being continuously

improved to be best-in-class.

They are at the heart of

what we are. Our chosen

markets will be solely

determined by our ability

to be the most competitive

and to consistently deliver

unequalled service to our

customers all over the world.

our vAlues

We seek to be epitomised

by our passion, integrity,

entrepreneurship and our

innovative spirit, as we

continually strive to fulfil our

vision. These values guide

us in all that we do and are

the bedrock upon which our

organisation is built.

75 000employees

1 500offices and laboratories

1global network

Page 5: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs nvirocrop

smArter fArminG

cobus burGer

Managing Director, SGS NviroCrop

Globally, agriculture faces the challenge of keeping pace with human

population growth and the threat of climate change. Cobus Burger,

Managing Director of SGS NviroCrop, knows nature holds the key to

sustainable crop production. He innovates to discover nature’s secrets.

Page 6: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

76

sGs nvirocrop

An AttrActive proposition

“Farming is not ‘cool’ and that’s a problem,” begins Cobus, looking out over his crop test fields in South Africa. “The average age worldwide of a commercial farmer is 56 years. Young people are not interested because farming is no longer attractive. Here at SGS NviroCrop, we are trying to change that. We deliver services that provide operating leverage and sustainability for both large-scale operations and small-scale community farms. By making farming profitable, we make it attractive again. That means more farmers, more crop production and better food security: it’s a win-win situation for everyone.”

workinG with nAture

As a part of SGS Seed and Crop Services, the innovations from SGS NviroCrop provide a platform for selling smarter farming practices worldwide. Their ability to make farming more attractive and sustainable is based on introducing new precision farming techniques. Cobus has made this his specialist subject for the last 21 years. He knows how to accurately identify the weakest link in crop yields and quality, and he delivers this knowledge through his services for SGS customers. His innovations in precision farming techniques are helping farmers learn how to work with nature and not against it.

precision fArminG – whAt is it?

Why is precision farming so successful for SGS customers? Cobus explains it like this, “Precision farming works because we fertilise just the right amount, in just the right areas. Our innovation is that we use satellite technology, GPS and sampling techniques to view everything happening at ground level. What is exciting is that this allows us to determine all the variables in the soil. From this knowledge we create chemical maps and soil maps that illustrate our recommendations for variable rate fertilising. We then know where to apply less fertiliser or more fertiliser, depending on high or low potential areas respectively. By doing this, we avoid the risk of polluting the aquifer and create a more sustainable farming environment. The business advantages we supply are to lower input costs and at the same time increase the yield potential for our customers. Put simply, we create better profit margins. When you realise nature is full of variables waiting to be discovered, and you find a way to unlock and interpret these, you can make any innovation in agriculture successful. This is one of the most underestimated principles in farming. At SGS NviroCrop, we get it. We approach agriculture and seed and crop innovation as a holistic business challenge.”

it is from innovAtions like this, And mAny others from sGs nvirocrop, thAt sGs is beinG noticed Across southern AfricA As An orGAnisAtion deliverinG proGress, trust And A reAl commitment to A better future.

Smarter farming for Cobus

Burger is all about developing

a real understanding of how to

use things differently. He enjoys

finding the newest technologies

and developing ways of adapting

them so that they function better.

Knowledge for Cobus, you sense,

is about getting hands-on in the

very soil he wants to improve.

He embodies the vision of a better

tomorrow by working smarter

today. At SGS NviroCrop, all of

the 18 expert agronomists have

that same drive to create new

ways of working. Cobus and his

team have positioned SGS as

a leader in Southern Africa for

consulting in precision farming

techniques. Their holistic approach

is already providing tangible

and sustainable results that are

beginning to resonate across the

continent. Making a difference is

their priority, in months not years,

because they know that is what

keeps innovation in the spotlight.

Page 7: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

98

sGs nvirocrop

the future of precision AGricultureWatch out for these innovations over, on or in a crop field near you soon:

unmAnned drones equipped with cameras to deliver a bird’s eye view for specialist ‘zone detection’ software

perforAted pipes installed in order to tackle salt build up due to poor quality irrigation, generating proper water drainage systems that can increase yields by up to 40%

yield prediction models from combining satellite imagery with yield maps to let farmers accurately predict yields during the second part of the growing season

innovAtion vAlues

Cobus looks at the ‘value’ of innovation in three ways:

the motivAtion it Gives his teAm to keep creAtinG new solutions: “You must have passion – the will to make a difference. I want my team here at SGS NviroCrop to make a difference and strive every day to innovate and develop new services for SGS. We keep everybody here involved as the results start to come in. Everyone stays in the loop and remains personally connected to projects. I want people here to care about what they do. Our business model has to reflect this, as positive results drive our organic growth.”

the vAlue for sGs beyond mere revenue GenerAtion: “Revenue, profit – these cannot always be the main factor. Some of our projects may not bring huge financial benefits but they add value to our customers’ businesses. They help develop a desire to continue working with SGS. We then become the default ‘go to’ organisation for trusted innovation.”

AttrActinG the next GenerAtion of innovAtion tAlent: “It is very important for me to bring new talent to SGS. Young people with a fresh outlook that bring ideas we have not even considered. Young innovators are still experimenting, creating the difference we value so highly here. By joining SGS, they suddenly get the opportunity to be supported in their thinking. We offer a globally respected network within the industry. At SGS, new innovators can have an impact that has worldwide reach.”

Crop test fields in Potchefstroom, South Africa

228% increase to operating leverage over two years for McCain’s chip potatoes

247% increase to operating leverage over one

year for a major citrus orchard

1% increase in farming efficiencies has

the potential to save over $1 billion

locAl benefits

Holistic thinking means Cobus and his team of expert agronomists go beyond unlocking the variables of soil. They also develop new business partnerships throughout Southern Africa that promote SGS at a local level. For instance, small-scale farmers in South Africa have to rely on what is available to them for seed and fertiliser. Cobus sees this as an opportunity for SGS to offer an innovative new service. “We connect the small-scale farming communities in South Africa directly to the major international fertiliser companies. In negotiation with the fertiliser companies, we obtain free fertiliser samples for the communities we partner with, and in return they allow us to investigate the actual performance of the fertiliser in their particular region. As each region is unique, in terms of soil property, we can then help the fertiliser companies create a compound specifically tailored for each community. In parallel, we run education programmes with the farmers to explain why the testing process is going to ultimately benefit them in the long-term. On completion of the study, when they get the chance to purchase their unique fertiliser compound, they get a quality product specific to their region. This helps them to farm and grow crops in a more efficient, productive and sustainable way. Other farmers around their community see this and want to know how it happened? It is a very positive way for SGS to interact with the local farmers and communities.”

Page 8: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs minerAls services

productivity enhAncements? Just Add robots ken litJens

Vice President, SGS Minerals Services SEAP

Page 9: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

1312

sGs minerAls services

A robot’s best friend is Ken Litjens,

Vice President of SGS Minerals

Services in South East Asia Pacific

(SEAP). His innovative use of

existing robotic technologies has

created new opportunities and a

new workforce for SGS. Not to

replace the present workforce,

but to make their lives better, safer

and more productive.

Ken is kept busy in SEAP. Maybe it

was this continued demand on his

time that spurred him to seek out

and improve on automated robotic

systems for SGS Geochem. His

innovation was borne out of

necessity: there were simply too

few workers available for the jobs

Ken needed filled.

In Perth, the highly competitive

hub of mining in Australia, Ken

no longer has to worry as much

about recruitment. Thanks to his

automated robotic systems his

existing workforce now benefits

from better working conditions

and increased job satisfaction.

He has managed to orchestrate a

team that provides SGS customers

in SEAP with exactly what he

was aiming for – productivity and

quality improvements.

the mininG industry in perth is truly unique

Page 10: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

1514

sGs minerAls services

ken’s robots

Ken’s push for innovation in productivity with SGS Geochem has been affectionately dubbed: ‘Ken’s robots’. He elaborates, “We did not invent the automation behind SGS Geochem, or the robots, but what we did was take the technology that was available at the time to the next level. Automated systems only work as intelligently as their design allows, and luckily for SGS there are some very talented scientists in my team. We tailored our automated systems specifically to solve the needs of our customers. The mining industry in Perth is truly unique in the way it has embraced the use of robotic automation.”

Automation has major benefits, as Ken reveals, “It means we can eliminate a lot of the manual handling jobs our people have to do on a daily basis. When someone literally has to crush rocks for a living, or weigh a thousand samples in a shift, their safety and their motivation are both at risk. So, just the improvement in working conditions for people here at SGS is a great plus. Work becomes more interesting for them because they are free to invest time elsewhere.” The benefit in other ways is not lost on Ken either, “The best thing is, with a robot the work always gets done as fast as you need it, with no sick days or operational health and safety issues.”

The benefit of Ken’s robots, beyond productivity, is the reduction in the chance of error on the job. “If you think about human error, it is random,” explains Ken, “and so because of this it is difficult to eradicate. With a robot any error is systematic, so it is easier to notice errors and easier to fix them. The way we have

specifically developed our technologies allows us to be at the forefront of what is possible and to continuously improve our service. That is what makes our service innovative and in demand by more and more mining companies in SEAP.”

from pit to port

“A mantra of our minerals business for the past ten years has been: ‘From Pit to Port’,” continues Ken. “What that means is we provide a service to our customers from the mine all the way through to delivering goods to their final destination. Not many other companies can do that. SGS has the global reach and services to achieve this. For instance, we have grassroots exploration tools that help our customers find new resources and identify prospective areas. We can get involved at the very earliest stages of exploration and then move on to define resources for drilling, design flow sheets and explain the best way to extract the metal from the ore. Our metallurgy division provides onsite expertise, while our laboratories provide data to optimise the mining process. We have the ability to get that extra 1% or 2% of productivity. If you do the math on plant processing that may be 20 or 30 million tonnes a year, it adds up to quite a profit.” Ken’s involvement does not stop there. “We are also involved with the process of selling the commodity, confirming that it makes it onto the trucks, and ensuring what is supposed to be there is in the right quantity and quality at loading and unloading. Finally, we ensure the safe delivery of the product to the end of the supply chain.”

benefits Across sGs

While Ken is primarily concerned with operations in SGS Minerals, he understands the wider benefits that SGS services offer. His close integration with other SGS colleagues helps him with this. “Mining has a few challenges to overcome such as its environmental impact or reducing work place incidents. I try to educate businesses on the sheer breadth of services from SGS. Many of our customers we work with are amazed when they realise we can minimise their environmental footprint, and prove it; or realise they can come to us for comprehensive health and safety programmes, or a range of systems and certification trainings. SGS’ global size, and the level of service offerings, gives the businesses I talk to one major benefit – they can use SGS for everything and only have one creditor on their books.”

smArter thinkinG

As SGS customers have become more in need of new ways to optimise their businesses, so Ken has ensured his team has risen to the challenge. “The businesses we partner with are smart,” admits Ken, “so we have got to be just as smart. When a business asks for a breakdown on how the latest spectral analysis techniques can improve their operations, I want everyone on my team to be in a position to have that conversation with them. My team

shares knowledge so that any one of us can talk about QEMSCAN™ or MMI™ technology or any of the other cutting edge solutions we offer at SGS. That makes people trust SGS. We are seen across the mining industry as experts in our field and that is important in a sector as competitive as minerals.” Ken proactively encourages different divisions across SEAP to talk to each other and keep up-to-date on new advances in the industry. “If we say we are leaders, we need to lead. We need to know what the ‘next’ big thing is, or what has changed, and how that impacts our customers.”

locAl knowledGe

Ken has travelled to places in the world he would never have dreamt of visiting if it were not for his work with SGS. “The geographical spread of the minerals business and our involvement as leaders in this sector means we have in excess of 200 laboratory sites around the globe. There are 100 laboratory sites for SGS Geochem alone, of which 40 are commercial laboratories. Some of the places we go to are remote. I have travelled to many of the places where our laboratories are now located around the world. It is often during the business development phase, long before the SGS infrastructure is in place, and so you may end up miles from a city, town or village. This gives you a chance to really understand and connect on a local level. I meet the local workers and get stuck into working with the soil and dirt, and it makes a real difference. When you position yourself, as SGS does, as a ‘local’ global company it is important to visit and know what it means to work in these places.”

fly me to the moon

One place Ken has not visited yet, but that is definitely on his wish list, is as remote as it gets. “If there is the opportunity to set up mining operations on the moon, I know SGS will be involved,” states Ken. “Hopefully, it will happen sooner rather than later so I can be a part of that history.” With Ken’s enthusiasm, and down-to-earth outlook, it certainly wouldn’t be a surprise to see him get there. For now, he has his robots to take him to other worlds – of productivity.

in the minerAls business, And especiAlly in lAborAtory testinG, we hAve scientists with inquirinG minds thAt strive to discover new knowledGe.

if we sAy we Are leAders, we need to leAd. we need to know whAt the ‘next’ biG thinG is, or whAt hAs chAnGed, And how thAt impActs our customers.

At sGs, we Are chAllenGed to innovAte And follow our ideAs throuGh to completion.

Page 11: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

1716

sGs mmi™

SGS MMI™ is an advanced geochemical surface exploration technique that is proven to find mineral deposits in new or previously explored locations. SGS is the sole provider of MMI™ technology, with 15 years of experience in continuously researching and developing MMI™ and innovating new capabilities. As market leaders in ion extraction technology and geochemical exploration, mining companies worldwide partner with SGS and use MMI™ to pinpoint gold, base metals, nickel, uranium, rare earths and rare metals, kimberlite intrusives, and other buried elements. MMI™ uses state-of-the-art analytical analysis and sophisticated chemical processes to help target exploration drilling by providing information on the depth at which alteration and mineralisation is occurring. With exceptional low limits of detection (in the parts per billion range), made possible by the latest generation ICP-MS Dynamic Reaction Cell™ (DRC II™) technology, MMI™ significantly decreases exploration time and costs.

qemscAn™ from sGs

Quantitative Evaluation of Materials by Scanning Electron Microscopy, or QEMSCAN™ for short, is the most powerful process mineralogical tool currently employed in the minerals industry. It is configured to measure mineralogical variability based on chemistry at the micrometer-scale. SGS experts in applied and process mineralogy use QEMSCAN™ to aid strategic decision-making in acquisition, exploration, feasibility, and plant operations. QEMSCAN™ consists of cutting edge components that utilise back-scattered electron (BSE) signal intensity and Energy Dispersive X-ray Signal (EDS). These combine to create a unique, flexible minerals identification and measurement technology, which provides: bulk modal analysis; particle maps; locked and liberated textural analysis; size-by-size and mineral-by-mineral chemical assay; and trace mineral hunt and search capabilities. As the industry leader in integrating High Definition Mineralogy services, such as QEMSCAN™, SGS is continuing to deliver innovative technologies and solutions that create advantage.

sGs minerAls services

sGs minerAls services in AustrAliA

sGs metAllurGy is recognised globally as the world’s leading developer of laboratory and pilot plant testing programmes for improving metallurgy operations. Proven experience in creating bankable, sustainable flow sheets and practical technical solutions allows SGS Metallurgy to continue innovating new approaches for the processing industry in geometallurgy, process modelling, production forecasting, and advanced control systems.

sGs Geochem provides innovative and unique services in exploration and process control sampling. With a network of NATA accredited laboratories, process automation and robotic sample preparation, SGS Geochem is responsible for the exclusive MMI™ technology and a comprehensive range of mine site laboratory services.

sGs coAl And tech services has NATA accredited coal laboratories servicing all major coal ports in Australia. SGS Coal and Tech Services provides quality control at mine sites, borecore and power plant evaluation, and mechanical sampling design and commissioning across a range of bulk particulate materials.

sGs AdvAnced systems is the hub of SGS Minerals’ advanced process control and online diagnostic solutions. SGS Advanced Systems offer a wide range of expert systems for unit operations, including: crushing; grinding; beneficiation; flotation; dewatering; induration; and drying – ensuring metallurgical operations are stabilised and optimised to maintain improved throughput and recoveries, 24/7.

sGs minerAls trAde delivers inspection and supervision services to the mining industry. For anyone who needs to sell, buy or transport material anywhere in the world, SGS Minerals Trade is a trusted partner for independent verification and certification of product quality and quantity.

Page 12: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs Applied technoloGy & innovAtion center

i invent to chAnGe the wAy industries work in the future wAyne krielDirector, Applied Technology & Innovation Center (ATIC)

Page 13: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

2120

sGs Applied technoloGy & innovAtion center

After more than four decades in

the oil and gas industry, Wayne

Kriel, Director of the Applied

Technology & Innovation Center

(ATIC), is once again bringing new

impetus to technological advances

in the upstream sector. As a

result, SGS Upstream Services

is changing the perception of

the global oil and gas industry

by introducing innovative

technologies for onsite real time

sampling and testing. SGS is

now a visible industry player and

leading innovator in technologies

and services that are forcing the

oil and gas industry to not only

rethink what is possible in testing,

inspection and certification but

to reassess SGS’ role in all their

upstream operations. This truly

differentiates SGS as a provider

of innovative technology driven

services. An achievement that

mirrors Wayne’s motto: “Don’t aim

to be competitive in an industry,

aim to innovate to change the way

that industry works, forever.”

chAllenGinG ideAs

The ATIC team’s inventive genius and astute business minds help the development of new technologies. Their creativity in developing novel solutions for the upstream sector means SGS customers can overcome their most challenging sampling and measurement problems. Wayne explains how the ATIC started, “The idea for the ATIC originated from a conversation with Alim Saidov, EVP of SGS Oil, Gas & Chemicals and Environmental Services. The conversation centred on how to create new opportunities for SGS in the upstream sector. We knew there was a gap in the market for truly innovative services. What the ATIC offered us was the chance to develop our innovations into solutions for our customers.”

The ATIC originally consisted of a small elite group that included some of the leading innovators in the industry. Collectively, they knew that while the oil and gas industry prides itself on new exploration it is surprisingly slow in developing new ideas and technologies. Wayne continues, “Right from the start that gave us an advantage – we were interested in bringing these new solutions to life. I had already had success in turning ideas into new and profitable business services, so based on these past innovations, SGS gave its full support as we began working to turn SGS into a leading innovator in the upstream sector. For SGS, the ATIC really did represent a truly unique new way of thinking, both in terms of business and innovation.”

onsite innovAtions

Early on, it was decided that the ATIC should focus its efforts on services that offer onsite real time sampling and testing solutions. Wayne explains why, “Our customers were asking us to develop a faster alternative to fixed laboratory PVT analysis. In most cases, the transportation of samples to land-based PVT laboratories would take at least three weeks, which was too long for many of our customers. We looked at more immediate ways to generate results for them. Our idea was to take all the capabilities of a land-based laboratory and create a portable laboratory that could be easily installed at a production field or platform. The attraction of this solution was that it removed the need for our customers to transport samples altogether. In placing the laboratory on site, the issues sometimes associated with shipping, contamination or timeframes were eradicated. So, the first real innovation from the ATIC was to provide a solution called the FluidPro PAL™.”

Creating an onsite laboratory that delivered results equal to, or in some cases better than, fixed laboratories is an innovation many in the industry thought impossible. But the challenge of the impossible is something that drives Wayne and his team to prove otherwise. “We knew we could deliver the FluidPro PAL™ but what we didn’t realise was how in demand the service would eventually become. We have now built a fleet of complete FluidPro PAL™ laboratories, and have them stationed in Angola, Kazakhstan, Brazil, Mexico, Asia, and many locations in the Middle East. Our customers find the laboratories

invaluable to their operations and wonder how they managed without them for so long. When a PAL,” as Wayne refers to them, “goes out, most of the time it does not come back until after the full development project is completed. For example, we sent one on a three-month trial and it has now been in service for three years.” It sounds an obvious and simple idea – transfer the capabilities of a fixed laboratory into a portable one, take it to some of the remotest places on earth and power it up – but it took Wayne and the ATIC to finally realise what many people in the oil and gas industry said could not be done.

Just the beGinninG

For Wayne, the FluidPro PAL™ is just the start of what the ATIC is capable of innovating. He has completed many more projects and developed unique sampling and measurement tools, including: MiniPVT™; AutoGOR™; Rapid Deployment Kit™; GC/GOR™; GasPro™; and IonPro™. Each project has made a significant impact, in a very short time frame, across the entire upstream sector. The ATIC’s ability to redefine SGS as an innovator is being proven with the release of each new technology and service. The ATIC presents the perfect blueprint for innovation at SGS: a shared vision and collective passion to create solutions that others believe impossible. As a result, SGS has gone from being relatively unknown in the applied technology world of upstream, to being the company that everyone wants to work with. By listening to the needs of SGS customers worldwide, the ATIC is now creating global business solutions of the future.

in the oil And GAs industry, new explorAtion is pushinG boundAries. the chAllenGe is to Achieve AccurAte AnAlysis in the most remote plAces Around the world. compAnies need to know exActly whAt they hAve found, preferAbly As soon As they find it. wAyne kriel, director of the sGs Applied technoloGy & innovAtion center, mAkes this possible in every corner of the Globe. his new technoloGies for sGs upstreAm Are settinG new benchmArks for the industry, boostinG the GlobAl demAnd for innovAtive sGs services.

<18 inches of bench space required for the

MiniGOR™ Flash Separator

5% precision from consecutive

sampling results with SGS Methanol-in-Crude Systems

Page 14: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

2322

The ATIC offers SGS customers a unique ‘idea-to-service’ facility. It houses state-of-the-art laboratories

and immediate access to skilled prototype fabrication in one location. This allows any of the ATIC team to

sketch out an idea of what they need and simply walk it along the corridor to the fabrication office.

ideAThe ATIC has inhouse fabrication capabilities so is able to immediately create working prototypes. This

allows the team to develop and test new technologies until they are ready to be deployed, giving the ATIC

a leading advantage when it comes to getting innovations into the hands of SGS customers.

prototypeOne example of this ‘idea-to-service’ is the SGS MiniGOR™. An SGS customer mentioned to the ATIC

team that they had problems transporting samples. The process always compromised their samples

before they got to the laboratory for analysis. The ATIC team suggested eliminating the transportation

process by analysing the samples directly on the platform. This avenue had already been considered, but

was not believed to be possible. For the ATIC team, it was another chance to invent the ‘impossible’. In

just three months, they had researched, tested and delivered a working prototype that provided accurate

onsite sampling.

productionThe innovation of the SGS MiniGOR™ proved so successful that it was soon being requested worldwide.

This ability to perform inhouse innovation ensures R&D stays within the walls of the ATIC, and new tech-

nologies and their advantages remain solely in the hands of SGS, and SGS customers.

sGs Applied technoloGy & innovAtion center

lee williAmsCompetency Team Leader, Applied Technology & Innovation Center (ATIC)

Lee Williams is one of the original

team members of the ATIC. He

is responsible for developing

new services in flow assurance,

production chemistry, enhanced oil

recovery, geochemistry, and other

areas. He knows what makes the

ATIC different.

creAtinG innovAtion synerGy

“These days there is a lot of technology that you can buy straight off the shelf,” explains Lee. “With advances in electronics and detection and measurement systems, our industry has been revolutionised but only a few are really bringing these advantages together. Here at the ATIC, we do exactly that, we look at how to make what was a single function apparatus perform multiple functions. Our innovations also come from exploring ways to automate functions to make them accessible to non-experts. We challenge ourselves to make new systems portable, and user friendly, so they can be employed anywhere in the world. We try to bundle as much advantage into a single unit as possible in order to reduce equipment, the number of individual operations needed per task and the risk of error in results. That is the benefit to our customers from our thinking and expertise here at the ATIC – we combine portability and multifunctionality in a single unit.” Lee knows that the freedom the ATIC team has been given by SGS to innovate is what makes the difference. “SGS encourages and supports ideas that bring new business to the SGS Group. There is no complicated chain of approval, SGS very quickly approves our proposals. It does this because we only target those ideas

that will be commercially viable. We have unique insight into what will be a globally sought-after product. Our customers want what comes out of the ATIC because our people look at more creative ways to make solutions happen. For example, the AutoGOR™ and the CycloneSeparator™ are the kind of innovations developed at the ATIC that go beyond a mere solution. Innovations like these give our customers a next level advantage in day-to-day operations.” Lee is convinced that the ATIC creates an innovation synergy that is seldom found anywhere else in the industry. His success in delivering technologies that go beyond expectations is proof of the creative mindset fostered at the ATIC.

we try to bundle As much AdvAntAGe into A sinGle unit As possible.

Page 15: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

2524

sGs Applied technoloGy & innovAtion center

19

S39.098

SOLUTION

22

V47.867

VERIFICATION

15

O30.974

OPTIMISATION

5

E10.811

EVALUATION

12

L24.305

LIQUEFACTION

4

DDEDICATION

9.0122

sGs GAspro™

SGS GasPro™ is a fully portable automated sampling solution for product quality validation in the commercial fuel and gas industry. It analyses natural gas, LNG, LPG or chemical gas, and supplies immediate results calibrated to the specific needs of an operation. The ATIC team developed it as a fully portable process gas chromatograph, sized to meet check-in luggage regulations, with a simple to use touch screen menu that offers a truly go-anywhere solution.

sGs rApid deployment kit™

SGS Rapid Deployment Kit™ delivers live sample composition (water, gas and oil), trace contaminant, base oil contamination, and physical properties measurement. Developed by the ATIC, and incorporating industry-standard methods and SGS patented technologies, it provides a wide range of testing options. SGS Rapid Deployment Kit™ samples everything from formation brine samples to pipeline gas samples at well sites.

sGs ionpro™

SGS IonPro™ is a comprehensive water chemistry analysis and data interpretation service. It simplifies complex data so that reservoir engineers in facilities, process design and production operations can act quickly to reduce risk and maximise efficiencies in operations. SGS IonPro™ utilises proprietary ion chromatography (IC) and wet chemistry field procedures to give the full picture of what is happening in oilfield water chemistry.

sGs AutoGor™

SGS AutoGOR™ provides analysis of reservoir fluids via a small, portable and environmentally controlled enclosure that can be installed in almost any geographic location – onshore or offshore. It combines high precision pumps, sensors and meters, with an automated operating system for reliable and trusted results. Simple and easy to use, SGS AutoGOR™ requires minimal training to operate while maximising the opportunities to receive results where and when needed.

Page 16: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

2726

we Are inventors, innovAtors And free thinkers. we love to be in the lAborAtory developinG new ideAs every dAy.

sGs Applied technoloGy & innovAtion center

GrAhAm mullinGs

Research Chemist, Applied Technology & Innovation Center (ATIC)

Innovation at the ATIC extends to

the way new hires are onboarded.

Graham Mullings, recruited two

years ago as a recent chemistry

graduate, is one such example.

A briGht future

Graham had to find his feet quickly as an applied research chemist at the ATIC. “Coming to the ATIC from college was like night and day,” reveals Graham. “In college, we were told what was needed pretty much everyday. Here at the ATIC, you are briefed, given a budget and from there on it is up to you to come up with the solution. That is an amazing opportunity for a college graduate. It is daunting to be placed in that situation straight from college but at the same time it is an incredible challenge.” Graham is typical of the new hires that Wayne brings into the ATIC and the challenges they face from day one to begin their own path to innovation. “Working at the ATIC is a chance to learn from some of the best in the business,” continues Graham, “they represent an elite group in upstream. I can tap into knowledge from laboratory testing to field work, petroleum engineering to chemistry and get over 25 years experience in each area. I’ve been sent all over the world working with the FluidPro PAL™. I’ve witnessed first-hand how big SGS

is globally. Right now, I’m working on automating our GC/GOR™ so that it can be operated anywhere, by anyone, and when completed it will really change the game in the upstream sector. If you had told me I would be doing this two years ago, I probably would not have believed you.” Wayne knows that bringing new hires like Graham into the ATIC, and getting them up-to-speed from day one, is exactly how SGS can keep pushing the boundaries of what is possible in upstream technological innovation.

if you hAd told me i would be doinG this two yeArs AGo, i probAbly would not hAve believed you.

Page 17: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs e-mobility

rechArGinG A new GenerAtion

mAtthiAs popp

Vice President, SGS Consumer Testing Services, Automotive

The history of E-Mobility is not new. People have experimented, developed and mass-produced electric vehicles for nearly 120 years. The question is: what innovation is still missing for success? Matthias Popp, Vice President for SGS Consumer Testing Services, Automotive, believes he has the answer – integration.

Page 18: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

3130

sGs e-mobility

focus on the future

“We are responsible for creating new test technologies for OEMs, particularly in the field of electro-mobility, or E-Mobility,” is how Matthias explains his team’s role in SGS. “Since 2008, we have seen that due to various factors, such as the financial crisis and an increase in oil prices, the automotive industry has suffered difficulties in selling large volumes of conventional combustion vehicles. With declining profits and increasing green policies from governments globally, the automotive sector has renewed its interest in electric vehicles. A similar thing happened during the 1970s when oil prices threatened productivity and profits. In fact, even now, if you look at Asia, Europe and the USA the push for innovations in electric vehicles and hybrids has mirrored a gradual paradigm shift away from fossil fuels to renewables. Perhaps for SGS in 2012, this is a timely change in perception – the last time sales in electric cars peaked was exactly one hundred years ago, in 1912.”

creAtinG An electric lAndscApe

While electric vehicles may not be anything new, for E-Mobility to become a serious global player in the automotive market many areas still need revisiting. If only to make sure that, this time around, E-Mobility is accepted at the consumer level. Matthias and his team provide leading OEMs with dedicated services that generate consumer confidence and trust. “We have specific teams here in Munich that specialise in different areas of E-Mobility. Our homologation group is working with OEMs to speed up the development and type approval process for products. This allows OEMs to get cars to market quicker and more efficiently, helping to keep prices down, which is important for the consumer.” Matthias continues, “We have a team who carry out state-of-the-art battery testing. SGS has invested heavily in this area and the result is a purpose-built €10 million battery test house. This gives us a real edge over our competitors as we can offer OEMs the opportunity to research, develop and test the safety of future innovations in battery technology. Our functional safety group is ensuring computer controlled systems, which are quickly becoming the heart of electric cars, can deliver safety even in the event of software or hardware failure.” This is easier said than done, especially when some electric cars now rely on up to four independent, but interconnected, motors and battery systems for their drive system.

Matthias and his team also consider how the electric landscape needs to change in order to keep vehicles at full power. “We have a team solely dedicated to innovating testing techniques that safeguard the infrastructure for making electric vehicles viable. For instance, we develop and certify the test charge stations which are now popping up everywhere from people’s homes to fast food drive-ins. Our team helps OEMs meet the safety compliance requirements for these charge stations. Requirements that are continually-evolving in order to cover new challenges against misuse, deterioration due to environmental elements, and acts of vandalism.”

It seems the collective knowledge and experience at the E-Mobility Innovation Centre in Munich really does offer OEMs a one-stop solution for SGS services. Matthias is hoping his integral safety approach can once again make the difference in helping this emerging sector of the automotive industry to recharge interest in innovation.

We have a different focus

on technology. We challenge

conventional thinking, in

order to create unique

engineering solutions.

kArim kortländer

Manager, Alternative Drive Systems

We ask our customers novel

questions. Ones they haven’t

thought of yet. That allows

us to bring innovation to our

customers’ technologies.

JAn huber

Manager, Customer Service, EMC & Safety

Electric cars have silently graced the roads of Europe and the USA since the 1890s – only a decade or so after SGS was established in 1878. They proved so popular even Clara Ford, wife of Henry, owned a 1914 Detroit Electric: before her husband changed the automotive landscape forever with his now legendary ‘Model T’. Matthias Popp and his team at the SGS E-Mobility Innovation Centre in Munich are hoping to change that landscape once again.

Matthias is combining the knowledge of a number of individual SGS divisions – automotive, chemical, energy, and industrial manufacturing industries – to create a single ‘integral safety approach’ for E-Mobility. His aim is to bring all of SGS’ expertise together in one place and offer a one-stop solution for functional safety, homologation, battery testing, and safety testing of electric vehicle innovations. In 2012, nearly 100 years since the Detroit Electric rolled down the road, Matthias believes the time to go back to an electric future is now.

Page 19: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

3332

sGs e-mobility

10million euros invested by SGS

1000volt 600 amp traction battery

testing capabilities

50times gravitational acceleration

shock testing

2000m2 of floor space housing the

most up-to-date battery testing equipment

500kilos the weight of a single high-

performance (up to) 1000 volt battery

-40to 160 degrees Celsius climatic chamber ‘extreme temperature’ test environment

12test benches for simulation of battery

drivecycle and lifecycle scenarios

300kilo newton force shaker for vibration

and shock testing

5special rooms for overload, crush,

drop, and penetration safety testing of traction batteries

co2 limits are forcing a rethink by OEMs and their R&D departments, prompting hybridisation and electrification of whole fleets of new vehicles

chArGinG while drivinG is a radical new way of approaching E-Mobility which is innovating new ways of keeping electric vehicles on the road without the need for stopping to recharge

Autonomous drivinG may become reality, where you no longer ‘drive’ but instead ‘travel in’ your vehicle as it takes you safely to your destination

enerGy storAGe systems in new batteries to allow people to ‘connect to grid’ at home and supply electricity stored in their vehicles back to the grid for peak shaving grid demand

rAdicAl new bAtteries produced specifically for decentralised energy storage and based on e-mobility technologies offer more households the chance to live ‘off the grid’ via solar or wind charging

drivinG new leGAl frAmeworks of the future kArim kortländer

Manager, Alternative Drive Systems

Karim Kortländer is an expert in non-conventional drive technologies for vehicles that run on hybrid, pure electric, hydrogen liquefied gas, and the many other drive technologies hidden away in R&D laboratories around the world. Karim consults on how to bring these new drive innovations to market.

“We are kind of technical lawyers,” he begins, “We help manufacturers understand and navigate the regulatory environment so that they can develop products that get to market faster. We have two roles, advising our customers and sitting on technical working groups for standardisation and regulation.”

The latter role enables Karim and the E-Mobility team to stay ahead of the competition by being involved directly with the process of drafting new regulations. “We aim to develop testable and non-design restrictive frameworks for these new regulations, which we hope will guarantee the safety of passengers and the environment. The goal is to ensure all future drive systems for vehicles maintain, or even improve on, today’s accepted safety levels. However, we also have to ensure that when new technologies are safe, we can prove this, even when faced with the restrictions of out-dated regulations,” explains Karim. “The problem with today’s regulatory framework is that it slows down innovation. We have amazing new technologies but the legal framework to certify them is partially obsolete. It was set up at a time when the kind of technologies we are now innovating were not even considered in people’s wildest dreams. For instance, think of what computing was decades ago and what it is now. Mobile phone technology is another example of massive technological leaps in a short time frame. That leap in technology is just waiting to happen in the automotive world. For instance, imagine a car in the future: you simply get in, say a destination and relax for the rest of the journey. Through the integrated use of

GPS networks, predicted traffic flows, intelligent drive dynamics, and active safety systems – the car makes the journey for you.”

The technologies for making this kind of vehicle already exist. One thing stopping the car of the future being manufactured is the regulatory framework for determining ‘responsibility’ in the event of an accident. “That is our job,” recognises Karim, or as he puts it, “We negotiate the best path for our customers with regards to the current regulations. My skill is in dissecting the content of a particular regulation’s ‘protection mechanism’ and transferring this to future technologies. I guess you could say we align new technologies and future regulations. This benefits our partners in vehicle manufacturing, R&D development, and the many research institutes and universities SGS collaborates with worldwide.”

E-Mobility team in Munich: Jan Huber, Martin Schmidt, Matthias Popp, Jürgen Böck, and Karim Kortländer

sGs is workinG with stAkeholders to formulAte the new reGulAtory frAmework for AlternAtive drive trAins.

Page 20: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs vitroloGy

innovAtion is infectious Archie lovAtt

Scientific Director, SGS Vitrology

Ever since his childhood, Archie Lovatt, Scientific Director at

SGS Vitrology, has dreamed of searching for cures to diseases and

ways to make the human condition better. Now his cutting edge

thinking protects us. He ensures new vaccines and medicines are

safe from viral contamination.

Page 21: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

3736

For SGS Life Science Services,

Archie develops novel multi-

million pound R&D test methods.

His pioneering work helps

biopharmaceutical companies

distribute safe, uncontaminated

human biological medicines

to millions of people around

the globe every day. Archie

and his team provide SGS

customers with a unique mix of

world-class customer service,

unparalleled scientific ability and

decades of innovation within the

biopharmaceutical testing market.

You don’t have to spend long in his

presence to believe him when he

says, “Ever since my early years

in school, this is what I’ve always

wanted to do – help treat mankind

of the future. That is why I became

an innovator. Innovation will cure

diseases that we currently have no

treatments for.”

preferred pArtner

“What inspires me to innovate is being able to dream up new methods”, explains Archie from the SGS Vitrology laboratory in Glasgow, Scotland. “I joined the biotech industry in the mid 90s and have played a key role in developing services that represent the gold standard of quantitative real time polymerase chain reaction (qPCR) assays.” Together with his team, Archie has been responsible for the innovation of hundreds of assays, many of which are redefining the biopharmaceutical testing market.

Archie realises his cutting edge innovations are only one-half of any solution. Today, businesses in the biopharmaceutical industry demand a comprehensive range of services when choosing to partner with a laboratory. Archie ensures SGS is their preferred choice by bringing his tireless work ethic to continually improve technical regulatory services, business development services and the molecular biology assay R&D pipeline.

creAtinG synerGies

“The reach of SGS around the world means we can contribute to the validation and creation of novel medicines that will become the next generation of biopharmaceutical products,” explains Archie. “More and more top selling human medicines are becoming biological in nature. With the introduction of powerful new technologies, such as deep sequencing for the detection of unknown viruses, what we are working on today at SGS can become the new standard. Our innovations,” states Archie, “may replace conventional methods of creating medicines in the near future.”

sGs vitroloGy

Archie amazes me every

time customers require new

projects and products. He’s

able to see opportunities

in new technologies and

find solutions that make

immediate impact.

mArGAret temple

CEO, SGS Vitrology

Archie encourages honest

and open communication

at SGS Vitrology. I value

his thinking and input on

my ideas. It is inspiring

to be a part of his highly

professional, hard-working

and interactive team.

John blAck

Molecular Biology Manager, SGS Vitrology

The core strength of the SGS Vitrology laboratory is in providing access to a range of industry leading bioanalytical services in one place. Globally, SGS customers benefit from service offerings that include: primer design; assay validation to International Conference on Harmonisation (ICH) guidelines; standardisation; and Good Laboratory Practice (GLP)/Good Manufacturing Practice (GMP) documentation to support regulator drug submissions. These services deliver the critical assurances SGS customers in the biopharmaceutical industry need when developing new human biological medicines. By having them in one place, a synergy is created where solutions exceed expectations.

innovAtion And business

Archie recognises that science and business are inexorably linked. “We initiate at least three to five major test developments per year. Currently, we are working on a wide range of nucleic acid detection methods. From these, probably over 30 different virus detection methods will eventually be applied and launched as new SGS products in 2013. In all my work, I am highly motivated by both innovation and business. Turnover, growth and development targets all need to be considered. Accurate costing of projects and market intelligence ensures high profitability – we cannot afford to innovate otherwise.”

Archie lovAtt is As infectious As the contents of the test tubes, viAls And syrinGes surroundinG him. the core strenGth of the sGs vitroloGy lAborAtory is in providinG Access to A rAnGe of industry leAdinG bioAnAlyticAl services in one plAce.

652ft2 of state-of-the-art GLP/GMP

laboratory facilities allow SGS Vitrology to deliver a comprehensive range of biosafety

services such as: virology; cell and molecular biology; and microbiology and

electron microscopy

30years experience in a quality

regulated environment

38employees

Page 22: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

3938

sGs life sciences

Stephen Armstrong has a broad business perspective in his role as Global Business Controller and Head of Global Operational Excellence & Acquisitions for SGS Life Science Services. He works with the global team on a wide range of innovations and developments in what is a continually evolving industry sector. His role demands he stays at the cutting edge. “We are working heavily on innovative strategies because the entire medical and pharmaceutical industry is changing dramatically,” he explains. “Pharmaceuticals being developed today have been in the process of changing for the past 10 to 20 years. The industry is moving away from small molecules that can be assembled with traditional chemistry towards a new area of biologics.”

One of the early examples of biologics was in the creation of synthetic insulin for diabetic patients. Biologics are basically large molecule medications created using living cells or by replicating living processes. Stephen sees this as the future. “These medicines are what the industry is moving towards more and more, and so in response, SGS has to rapidly innovate to keep pace. We are adapting our laboratories that traditionally did small molecule testing, both on the pharmaceuticals themselves and the materials that go into them, in order to be able to offer services developed for these large molecules.” While it might sound fairly simple to upgrade a laboratory, it is far from easy. Stephen provides this analogy, “It’s like owning a motorcycle repair shop and suddenly being asked to work on jet engines. It is really a very different area of science we are faced with now. And very different skill sets that we need to be up-to-speed on.”

The fact that SGS works with customers throughout the biologics value chain is testament to the planning and innovations that Stephen and the team around him are successfully delivering. He knows creatively innovating services and facilities, plus making astute acquisitions such as SGS Vitrology and SGS M-Scan,

allows SGS Life Science Services to stay ahead of the competition.

Stephen realises that SGS’ proactive acquisitions policy greatly increases SGS service offerings.“ Companies like SGS Vitrology and SGS M-Scan have a key role in the development of new drugs known as monoclonal antibodies. For SGS, this is important as these will be increasingly coming onto the market in the coming years. These drugs use

the body itself to fight disease by directly accessing the technology that human life is based on. The difficulty and danger is that this also means contaminants like viruses can creep in, so we need to ensure the drugs always maintain the highest quality.”

Stephen knows his fellow colleagues at SGS keep the value chain for biologics production safe. “Archie Lovatt and the team at SGS Vitrology are world leaders in biosafety, and the great work that the SGS M-Scan team does allows us to characterise and understand proteins and their behaviour. Across both these areas, our technologies put us at the forefront of industry innovation. We support our customers in the services they require so that they can lead the progression of medical science, and in doing so, we help to bring the safest and highest quality of medications to market.”

For Stephen and the team at SGS Life Science Services, quality is not just a buzzword. “In this industry, quality means something much more profound than perhaps it does in other industries. Pharmaceuticals have to be at the highest level of quality because, quite literally, people’s lives depend on it.” It is thinking like this that inspires everyone in SGS Life Science Services to be better at what they do. “We all play a part in developing cures for diseases that are very difficult to treat. Maybe in 20 or 30 years diseases like cancer will be reduced to chronic, but treatable, illnesses with less of an effect on people’s day-to-day lives. I think the sector of biologics and biopharmaceutical proteins offers us a real chance to make this a reality. And the opportunities for pharmaceutical development in this sector are high for both emerging and mature markets. To be a part of helping in any way possible is what drives my motivation and passion to keep innovating.”

complete expertise dr rAbiA hidi

Director of Biomarkers and Biopharmaceutical Testing, SGS Laboratory Services

Dr Rabia Hidi is the Director of Biomarkers and Biopharmaceutical Testing for SGS Laboratory Services. She is responsible for ensuring SGS customers get the laboratory solutions they need. In early 2012, SGS Life Science Services opened a new Cell-based Assay Facility in Poitiers, France. This new facility provided an opportunity to further develop and expand the services offered by Dr Rabia and her team. “We could see there was a demand for new services within the biological testing and biomarkers area. We simply needed a facility that matched our skills in this sector. The new Cell-based Assay Facility allowed us to quickly transfer our existing knowledge in order to develop applications for biosimilar services. SGS aided us in this process by investing in two of the latest generation BD Flow Cytometry Systems. These are the most up-to-date systems available

that integrate cutting edge software in their design to allow more detailed analysis of clinical studies. With this investment in technology we have been able to facilitate cross-comparison of data between laboratories, and provide a host of other enhanced analyses.” The result of this forward thinking by SGS is that the facility in Poitiers has already had an impact in growing new business. Of course, new facilities and technologies only provide a springboard for creating new business opportunities, Dr Rabia knows it is equally about how they are put to use. “This new facility is truly state-of-the-art. We have the staff, technologies and expertise to meet all the needs of our customers. We have brought together an expert team of scientists who are leading the newest innovations in the biomarkers area. Their remit is to focus on developing new immunoassays and find ways to optimise the immunoassays that currently exist.” Dr Rabia ultimately knows why her team and their work in Poitiers continues to be in such high demand. “We continue to work on new immunoassays until they are fit for validation and provide a complete solution to meet whatever challenge is presented to us. Our expertise and the trust our customers put in our ability to create novel ways to solve their problems is what makes us unique.”

the biG picture

stephen ArmstronG

Global Business Controller & Head of Global Operational Excellence & Acquisitions, SGS Life Science Services

700validated bioanalytical methods,

ready for use on request

35years of experience in global contract

servicing make SGS a trusted supplier of integrated solutions including: preclinical

activities to Phase I-IV clinical trials; bioanalytics and biosafety; biologics characterisation; and quality control

testing services

19worldwide SGS laboratories

provide analytical and bioanalytical solutions to global pharmaceutical and

biotechnology firms

2000clinical trials performed every year by over

1 500 SGS employees enable our customers to improve efficiencies in drug

development timelines and decision making

1393ft2 of new facilities in Mumbai bring the latest Q-TOF hybrid quadrupole

mass spectrometer, in-process sample testing, water system validation, and

biopharmaceuticals testing capabilities for mycoplasma and endotoxin

sGs sAmple processinG centre

SGS customers in North America asked for a trusted and faster method to access industry-leading biosafety, cell-based assay and immunogenicity analyses. SGS developed a new Sample Processing Centre based in Lincolnshire, IL. This new service, with integrated Biosafety Level 2 capabilities, means SGS customers now have a centralised receiving point to send their biologics samples. Once delivered, there is complete peace of mind in the safety of samples and integrity of sample results. SGS handles the biologic sample receipt, processing and onward shipment to one of their three GLP-certified biologics and vaccine testing laboratories in Europe – such as SGS Vitrology. SGS’ highly experienced team is known worldwide for their pioneering work in the field of bioanalytical services.

sGs clinicAl phArmAcoloGy unit

New clinical trials at SGS’ Clinical Pharmacology Unit in Antwerp, Belgium, are now benefiting from the implementation of a new eSource automation system. This new system helps SGS customers to overcome the specific challenges involved in Phase I clinical studies: customer access to study data, frequent changes to trial design, and the rapid pace of study set-up and execution. The eSource system (Oracle Health Sciences LabPas) is a centralised software tool that helps manage volunteer recruitment and electronic study data capture. The system reduces the risk of errors when entering data as all processes are automated. With the opportunity to share and review real time data online, this system allows clinical trials to be streamlined, saving time and costs as a result.

this new fAcility is truly stAte-of-the-Art. we hAve the stAff, the technoloGies And expertise to meet All the needs of our customers.

Page 23: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs intron

buildinGs speAk to meron leppers

Consultancy Manager, SGS INTRON

What if your building could talk?

Let you know how to optimise

energy savings or alert you if the

materials used within it are not

strong enough? Ron Leppers,

Consultancy Manager at SGS

INTRON, listens to buildings

every day so he can develop

the construction materials of

the future.

Page 24: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

4342

sGs intron

Having building materials that tell

you how they feel is a challenging

idea to grasp. But for Ron Leppers

it is simply another avenue down

which to drive his innovation.

Together with his team, he has

established a purpose-built

Sustainability Test Centre for SGS

that develops future green building

systems and products; a centre

SGS believes will ultimately define

what is possible in terms of

energy savings.

Ron’s thinking is what separates

SGS from its competitors in

construction and materials

engineering consultancy.

New business developments,

realised through openness to

entrepreneurial thinking, allow for

growth in innovative environmental

solutions across the construction

sector. Solutions from SGS

such as sulphur concrete, phase

change concrete, and many others

have already proven to reduce

greenhouse gas (GHG) emissions

in constructions and infrastructure.

deliverinG promises

For Ron, the idea behind the Sustainable Test Centre was a simple one. “If a supplier is going to introduce a new product to the market it has to deliver what it promises. The consumer has to see it working. But more than that, green building products must fit together within the overall system. They need to communicate with each other and enhance that system.”

To bring his vision to reality, SGS provided the necessary funding to help Ron begin his research. “We conducted a market survey of around 200 construction companies: small companies and large organisations. We asked them what was their next step in terms of product development. We wanted to know what help they needed to reach their targets. Could they get there on their own? Or did they need help? They were all unanimous in wanting assistance.”

This study was Ron’s first insight into how green building challenges could become a growth area for SGS. “The companies we spoke to were really happy somebody wanted to develop this idea of ‘living systems’ for green buildings. That gave us the confidence to request funding for the Sustainable Test Centre.”

Ron and his team managed to bring 90% of the companies he interviewed on board with his vision. His promise was to take their ideas and products to the next level of development. Ron explains how, “Our expertise here at SGS INTRON is our knowledge and experience of how materials work in real life. The Sustainable Test Centre means we can carry out development, testing and certification for our customers and get their products onto the market in the shortest possible time.”

A simple motivAtion

Ron had his own personal experience of energy and cost saving challenges. In fact, it was the initial seed of his idea for the Sustainable Test Centre, as he elaborates, “I had invested a lot of time and money into building my own house as an energy saving enterprise, and it wasn’t delivering. I had searched for the newest and best products on the market, and all the product marketing I had read told me I would save money. There was one problem though: I wasn’t.” It was not that the products individually did not work. The problem Ron discovered was that they would not work together. “My energy bills were at least 20% short of my potential energy savings. I went back to the suppliers and invited them to visit my house. We worked together on the problem. We changed things, adapted things and enhanced things. After one year of continual improvements, my house finally began working and delivering optimal savings. What we did was unique. We made separate individual products ‘talk’ to each other and work together.”

Greener buildinG

SGS is helping to lower the environmental footprint and operating cost of buildings around the world. Through investigating additional considerations, such as the type of activities taking place inside the building and changes to the surrounding environment, the benefits of self-regulating systems constructed with materials that control heat, lighting and energy usage is finally being realised. For SGS, and the companies it partners with, this new approach to greener building systems is truly revolutionary.

never forGet to hAve fun

The fact Ron’s idea has proved such a success is not a surprise to anyone at SGS, and every day he continues to attract new customers. “Here at SGS INTRON, we do mechanical tests, physical tests, chemical tests, biological tests, and environmental tests – when our customers visit us they are always surprised by the scope of our expertise. And that is always good fun.” Fun is certainly something Ron and all his colleagues believe in. “It is fun to be able to innovate around subjects we find interesting. At SGS INTRON, we do that. The result is that we develop new and unexpected things that inspire others. That is what drives us: creating tomorrow’s inspiration.”

Ron is not just an

out-of-the-box thinker,

he turns the box over so he

can climb onto it and see

further than anyone else.

Gert vAn der weGen

Director, SGS INTRON

the compAnies we spoke to were reAlly hAppy somebody wAnted to develop this ideA of ‘livinG systems’ for Green buildinGs. thAt GAve me the confidence to develop the sustAinAble test centre.

130 employees across three business

groups deliver certification, testing and consultancy on building materials

At sGs intron, we develop new And unexpected thinGs thAt inspire others.

we view our customers’ proJects As An investment thAt we must provide A return on.

when business listens, buildinGs Answer

sustAinAble test centre

Solutions are why businesses seek partnership with the Sustainable Test Centre. Green building entrepreneurs rely on SGS to add the missing ingredient to their idea. They trust SGS to add significant value, turning an idea into a profitable business venture. SGS’ vision of connecting green building products to achieve integrated solutions is an attractive one. Many new products are under development that create the difference in an increasingly environmentally aware society. Which is why SGS is in demand by global organisations, small businesses, academic research institutes, and governmental organisations worldwide.

Page 25: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

4544

Robert knows that Europe

is only at 30% of its 70%

waste recycling target for

2020. I see a huge potential

in his thinking. Globally,

SGS can be the solution

leader for waste.

rico vAn selst

Director of Business Development, SGS INTRON

robert hAverkort

Senior Consultant, SGS INTRON

Robert Haverkort is a Senior Consultant with SGS INTRON. He specialises in finding solutions for sustainability and durability in concrete constructions. Last year his innovations earned SGS significant fees from helping SGS customers manage waste material. Robert explains, “Waste is one of our biggest profit centres. We have a unique view on waste, for us waste is an opportunity to turn something worthless into a valuable product.

Over 30 years ago, slag was just waste and no one knew what to do with it. We researched it, predicted its performance, and tested and certified its use in concrete. In the end, we managed to replace 70% of the raw material in concrete with slag. Today, slag has a value of approximately $130 per tonne, and slag concrete is the most widely used type of concrete in the Netherlands. We turned waste into a high value product – we’ve done the same for fly ash, municipal waste, rubber tires, and other waste.”

wA$te not

sGs intron

rethink Accepted rico vAn selst

Director of Business Development, SGS INTRON

For Rico, innovation is all about rethinking the accepted approach. “We have an entrepreneurial way of doing business. Our consultancy work is based on finding solutions for our customers. There is no hourly rate because we no longer work like that. We sell solutions for a fixed fee. We find out the budget our customers have in mind and we propose a solution based on that budget. In this way, everyone involved is clear on what is to be delivered. We view our customers’ projects as an investment that we must provide a return on.” Doing things differently also means handling interactions in the office in a new way. “We don’t ask each other how work is going. Everyone knows co-workers, in all companies, are reluctant to actually quantify their day-to-day performance. Everything is a grey mist of answers to questions such as ‘how is it going?’ Answers are always along the lines of ‘ok, good, not bad, on track’. So instead, we invented a ‘weather reporting system’. Now we translate achievements into a weather forecast. If a project outlook is ‘bright and sunny’, we don’t worry. But when things are ‘possible thunderstorms’, we prepare for that. Thinking differently helps us act differently.” For Rico, business development depends on this. “We want people to be different, to be entrepreneurial and free to celebrate their individuality. Everyone at SGS INTRON can have the gadget, desk, or environment that best inspires innovation. We aim to empower by how we act every day. Innovation is in the DNA of our company and our people.”

Page 26: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

sGs environmentAl services

my love remAins unchAnGed, it must be chemistrypAul pui

Business Manager, SGS Environmental Services

Page 27: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

4948

sGs environmentAl services

A pArtner to believe in

For non-routine chemical analysis, Paul’s work and that of his team is now highly valued by the chemicals industry in Australia. “We have built our department into a profitable and sought-after service provider. What we do here is unlike anything else in Australasia. Chemistry does not change, it is the same whether you use it for mining, environmental services, occupational hygiene, or pharmaceutical monitoring – in the end it is simple chemistry; albeit, with our clever thinking to make it work properly.” It is precisely because of this clever thinking that SGS customers from across all industries rely heavily on the services Paul and his team deliver to them. They help reduce risk and increase safety in the potentially hazardous chemicals arena. “When a chemical plant is in trouble, our customers do not care how much it is going to cost them to fix things because they need the problem solved, and solved quickly. They know it is imperative to ensure all potential environmental and human health issues are avoided. Because of this, SGS is available 24/7 so that when they call us, at anytime of the day or night, we respond. We go in and we solve whatever needs addressing, before it is too late.”

A commitment to being available whenever needed has created a unique relationship for SGS with businesses across Australia. “My goal is for our customers to think of SGS as an extension of their own business. We want them to think of our service as their applied research laboratory. If we deliver everything they need, then they will never go anywhere else,” explains Paul. The continued call for his team’s experience is testament to the fact that SGS services have been readily adopted by the industrial chemicals industry in Australia.

my GoAl is for our customers to think of sGs As An extension of their own business. we wAnt them to think of sGs As their Applied reseArch lAborAtory. if we deliver everythinG they need, then they will never Go Anywhere else.

motivAtion And breAkthrouGhs

Paul and his team innovate every time they respond to a new issue because no two problems are alike. Every job that calls on their expertise demands a novel solution. This daily challenge keeps their motivation and passion to find solutions for SGS customers as strong as ever, especially for Paul, even after nearly 15 years. “I have to continuously innovate. I am not doing academic research or run of the mill analysis. No one here does. We are all here because we get challenged every day on high-end complex projects that require we find a solution. When you solve a problem, when you have that breakthrough in thinking, you are rewarded with tremendous satisfaction in your job. That is all the motivation we need.” Paul’s motivation is clear to see in his smile as he returns once again to his lab – and his unchanging love of chemistry.

AreA of science more thAn Any other hAs helped mAnkind – chemistry. it hAs helped to Grow better crops, mAnufActure new technoloGicAl products And produce fAster ActinG medicines. pAul pui, business mAnGer At sGs environmentAl services, works 24/7 to identify chemicAl risks And protect AGAinst disAster. In everyday life we are surrounded

by chemicals and chemical

processes. They are a part of what

we eat and wear, and the buildings

we live and work in. Chemicals

have made daily life better for

everyone but if mismanaged

they pose a significant risk.

Paul Pui works in the specialist

SGS Industrial and Analytical

Services Projects Group of SGS

Environmental Services, Australia.

He has decades of experience in

managing chemicals and knows

first-hand how to keep them

safe. Paul uses his knowledge of

chemistry to get the best results

for SGS customers. He is well

versed in the chemical analysis

needs of big business, and he

knows intimately the demands of

both local and global chemicals

organisations. His unique

experience and innovative thinking

has positioned SGS as a preferred

partner in the industrial chemicals

industry. Paul’s work allows SGS

to provide much needed services

to the Australian chemicals

industry: an industry that has

undergone a radical restructuring

in recent decades.

An outsourcinG solution

Paul’s forward thinking allowed him to see where the chemicals industry was heading during its restructuring process – outsourcing. He predicted a demand for third-party independent laboratory facilities. SGS had all the right expertise, and a trusted reputation, which Paul recognised would be a perfect fit in the new outsourcing culture. “With SGS, I knew it would be possible to offer exactly what organisations were going to need. I had twenty plus years of experience in high-end non-routine work. Together with SGS, I could realise my vision of creating the number one laboratory service in Australia for non-routine third-party chemical analysis. We now have a team with a unique skill set, expert business knowledge, in-depth health and safety training, and a comprehensive understanding of all the relevant market regulations. This has allowed us to capitalise on a niche market and create an innovative outsourcing solution for the chemicals business here in Australia.”

Paul brings a calm and

quiet sense of assurance to

everyone in the laboratory.

When he’s around you want

to learn what he knows.

dr pier victor GArlAndo

Analytical Team Leader, Industrial & Analytical Services Projects Group

Working here is exactly

what being a scientist for

me is about. We get to

do new, exciting and

challenging research that

makes a difference.

dr peter novellA

Laboratory Manager, Industrial & Analytical Services Projects Group

Page 28: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

5150

sGs environmentAl services

sGs dioxin AnAlysis services

SGS provides testing for trace quantities of dioxins in everything from air to food. Dioxins form as a byproduct of chemical and combustion processes. Due to their nature as an unintended part of the manufacturing process, dioxin levels are extremely low: in most cases at around one million times less than other environmental hazards. For SGS customers, dioxins pose a highly persistent environmental risk that can accumulate in the environment and cause a significant health risk by contaminating the food chain. SGS supplies a fast, effective and efficient service that reliably analyses dioxin content based on high-resolution gas chromatography and mass spectrometry. With over 16 000 analytical samples being processed every year, SGS is able to provide a proven, expert team of scientists wherever needed. SGS is accredited to certify that environmental standards are being met in the EU, USA and Australia, and offers an analysis and certification service that is second-to-none in the environmental sector.

sGs multi trAce®

SGS has developed a smart tool for qualitative and quantitative environmental investigation. Faster than conventional test methods, SGS MultiTrace® is able to target 350 compounds (organic micro pollutants and POPs) via an integrated sample processing flow. This enables SGS to tailor the analysis to local and international environmental testing regulations. SGS MultiTrace® is accredited to EN-ISO 17025 for validity, accuracy and precision in the results it offers SGS customers. An integrated laboratory service, with intelligent multicomponent screening, means SGS provides objective and scientific answers based on the most up-to-date technology available. For the most extensive analysis and assessment of soil and ground water samples nothing comes close to matching SGS MultiTrace® for cost-effectiveness, reliability and speed of results.

Page 29: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

5352

sGs benefits

quAlityOur customers rely on our independent third party inspection, testing and auditing solutions to ensure products, services and processes comply with the latest quality standards. Our global network of state-of-the-art facilities provides information to certify and verify quality worldwide.

efficiencyOur tailored business solutions help our customers implement processes and systems that make business operations faster, simpler and more efficient. We deliver unrivalled efficiency results from locally accessed SGS experts, who draw on the global experience of the entire SGS network.

sAfetyWe help organisations develop effective health and safety systems to protect employees, generate consumer confidence and enhance trust in business operations. We support our customers in adhering to best practices and complying with local, national and international regulations.

productivityOur training and outsourcing solutions ensure productivity keeps pace with developments in our customers’ organisations. In the short-term, we help by outsourcing our world-class productivity experts. In the long-term, we deliver focused training to develop specialist skills in our customers’ existing personnel.

reduced riskWe provide our customers with independent and impartial services that enable them to identify, manage and reduce risk. Our experts deliver risk management solutions, drawing on our testing and inspection capabilities to verify risk prevention measures are in place. Across a wide range of industries we assist with compliance to international risk management standards.

trustOur global reputation for independence and integrity enables us to build trust wherever needed. We provide transparent and unbiased inspection, testing, verification and certification solutions so our customers can give assurance in their products, processes, systems and services.

sustAinAbilityWe help our customers take ownership for building a more responsible and sustainable future. We encourage environmental responsibility and reduce the risk of corruption in our customers’ projects. Our services assist in developing sustainable facilities and production, as well as better working and social environments.

speed to mArketCompliance with the requirements of target markets is key to increasing speed to market. Our consultancy, testing and certification services help our customers overcome the complex challenges of understanding and meeting market demands anywhere in the world, whatever the industry or sector.

72.97 basic earnings per share in CHF

800 cash flow from

operating activities in CHF million

10.2 organic revenue growth in %1

30 proposed ordinary dividend in CHF

28 additional dividend per share in CHF

5 000 new employees and 150 new offices

and laboratories

5.6 total revenue in CHF billion

16.3 total revenue up in %

176 total cash consideration in CHF million

for the acquisitions

556 net profit for the year in CHF million

2012 the first year a single business sector

exceeded one billiion in revenues: Oil, Gas & Chemicals Services

18 acquisitions in 11 countries

1. Constant currency basis.

Page 30: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

5554

chemicAl

Industrial chemicals companies

trust SGS to provide the

services they need to remain

innovative, sustainable, efficient

and competitive.

Our services help to control chemical use according to the tolerance levels in place for an industry. We offer a comprehensive range of chemical solutions as well as asset integrity management services, lean optimisation programmes, project lifecycle services and technical support to help businesses run more smoothly, profitably and effectively. We have the knowledge, experience and global reach to assist with staff training or the provision of extra staff. We support our customers in meeting complex industry requirements, dealing with intricate equipment and sometimes difficult and dangerous logistics. Our services are designed to augment our customers’ existing processes and procedures and are delivered by our experienced operatives and qualified scientists.

construction

We ensure construction sites are

safe, processes run efficiently and

reliable materials are sourced.

Partnering all organisations constructing buildings or infrastructure, we determine how best to add value to all stages of both small and large scale construction projects. Our Geotechnical Services and Environmental Services conduct construction feasibility, risk assessment and management studies. We perform chemical and physical testing of the durability of materials and provide materials certification, checking suppliers and materials at source. In addition, we offer equipment services and an AHEAD asset management system to keep track of machines and other assets. Once a building is complete, we provide facilities management, waste management and inspection requirements, including energy audit certification. Thanks to our wide-ranging knowledge of construction and engineering, we ensure our customers realise projects on time, on budget and within all safety regulations.

consumer Goods & retAil

Our consultancy and cross-

business services help to facilitate

quality, compliance, safety and

sustainability across global

supply chains.

Manufacturers, importers, exporters and retailers of consumer products rely on our expertise to enable them to meet the challenge of delivering trusted consumer products. We help organisations to reduce risk, improve efficiency and ensure compliance with contractual or regulatory requirements throughout the supply chain. We provide a broad and detailed understanding of consumer goods and retailing, supporting our customers in building stronger and more resilient businesses. With our support, our customers gain a competitive edge by developing products, processes and supply chains that surpass expectations.

we test sAfety in everythinG from perfumes to pAints to toys.

we build efficient And sustAinAble businesses.

we deliver quAlity, compliAnce And sAfety to GlobAl supply chAins.

sGs by industry

AGriculture & food

Our services deliver end-to-end

supply chain solutions that

reduce risk, ensure quality and

improve productivity.

We play a key role in protecting the integrity of global food production through our agricultural goods tracking from field to fork. Consumers want assurance of safety and quality at every stage of the process. We safeguard their interests through our involvement from primary production to the point of processing or custody transfer. We assist with legislation compliance, ensure correct storage, shipping, packing and distribution, and assess products throughout diverse agricultural and food supply chains. Through our comprehensive range of cost-effective solutions we continuously improve safety, quality and sustainable development. Further to this, our approach to delivering services to our customers is harmonised across the largest independent network of experts in the world.

Automotive

We help every player in the

automotive industry improve

performance and reduce risk.

Our services focus on the design, construction and operation of motor vehicle inspection solutions that limit damages and increase automotive safety. We manage supply chains to provide reliable vehicles, cost reductions, shorter delivery times and improvements in build quality and efficiency. At the same time, our logistics and supply chain security, and dealership and workshop audits, keep aftermarket and distribution operations in line with brand guidelines. We increase safety and reduce the environmental impact of road traffic through our vehicle inspections to national requirements, testing and calibration of speed safety cameras, traffic management, driver examination and vehicle axle load control. Across our worldwide network we have the resources and expertise to deliver independent, accurate and secure vehicle and automotive solutions.

we Grow consumer trust in sAfety And quAlity from field to fork.

we drive performAnce And sAfety worldwide.

sGs services

Our specialist teams deliver

trusted results in world-

leading services, covering

virtually all industries. We

audit across the entire value

chain, providing benefits in all

business sectors. We ensure

our customers’ projects,

products, processes and

operations meet and exceed

regulations and standards,

and we provide the

verification and certification

needed to trade in target

markets around the world.

Our consultancy services

inform organisations as to

market demands, while our

outsourcing solutions provide

the expertise, experience

and resources that enable

our customers to meet their

goals. We use state-of-the-art

examination methodologies

with unsurpassed accuracy

to perform inspections that

reduce risk and control

quality and quantity, while at

the same time we conduct

testing of raw materials,

components and products

in our global network of

facilities. Our industry

experts also deliver world-

class training, specifically

designed for the precise

needs of our customers,

providing the right skills

and knowledge to

maximise efficiency and

improve productivity.

Page 31: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

5756

life sciences

Our services provide analytical,

bioanalytical and clinical trial

testing, along with process

management, enabling

pharmaceuticals to swiftly reach

those that need them with minimal

cost and maximum safety.

Our services get pharmaceuticals and medical devices to market quickly, while adhering to best practices and conforming to national and international regulations. We offer vital support and expertise throughout every stage of the drug development cycle. Partnering with SGS, our customers receive access to comprehensive biopharmaceuticals services and our in-depth knowledge of the medical device regulatory environment. Our staff-training covers pharmaceuticals, medical devices and health, beauty and wellness; with courses tailored to the requirements of individuals and businesses. There is no industry more heavily regulated than the development, testing and distribution of medicines and medical devices and our customers trust us to help them navigate the complexities.

loGistics

We work closely with our industry

partners to find innovative

solutions to develop and grow

businesses through processes

that work better, faster and

more profitably.

Designed to ease the process of freight forwarding, whether by sea, rail or road, our services include extensive import and export assistance. Our solutions encompass marine services such as cargo and vessel services, plant and terminal operations (PTO), import control services and international customs data exchange. For customers moving freight by rail or road, our essential solutions include terminal manning and weighbridge management services. We examine the operation of the interconnected processes and by using various tools and technologies we help to streamline operations and improve operating efficiencies. To support the logistics process we have a wide range of audit, certification and training services designed to help our customers run better businesses.

mininG

As a strategic partner, we provide

testing, technology, trade services

and consulting to help deliver

growth and lean efficiencies.

Our expertise in mining covers steel manufacturing processes, coal and coke trading, risk reduction and maximising profits and efficiencies in precious or base metal mining or extraction. We are a trusted third-party service due to our exploration, production, industrial applications, and decommissioning and closure solutions. Our services, delivered by our team of specialists, include advice on the most suitable technologies for a project and flow sheets to chart project progress. We work with customers to meet the challenges of this dynamic sector by improving speed to market and ensuring market developments and advances in technology are embraced.With our global network and cutting-edge facilities, SGS is trusted to provide transparent and unbiased support, helping organisations to flourish.

we protect sAfety And costs in phArmAceuticAl And medicAl devices development.

we creAte pArtnerships thAt streAmline operAtions And improve efficiencies.

we find solutions thAt reduce risk And deliver competitive AdvAntAGe.

sGs by industry

enerGy

We ensure regulations are met,

safety is considered at every

stage and environmental impact

is limited.

We support organisations involved in both renewable energy generation and conventional power plants drawing on our petroleum, gas, electrical power, coal and renewable energy industries expertise. Our independent inspectors verify and validate everything from petroleum fuel quality to stock levels. We support natural gas extraction and coal gas manufacture, as well as electrical power generation. For the coal industry our services cover exploration to decommissioning and we assist renewable energy organisations with hydroelectric power, wind power and solar power generation. Across all sectors we risk assess projects and support our customers through sales and distribution processes. Used on a standalone basis, or alongside existing working processes and methodologies, our services help energy companies run efficient, profitable and reliable businesses.

finAnce

Our services help organisations

ensure they have the right advice

to reduce the risks in project

finance decisions.

We evaluate lending, assess risk management, facilitate trade, and provide audit, certification and verification solutions along with finance training. For investment or borrowing on a new project, acquisition or venture, we inform on whether an investment or lending decision is viable and sound. Our teams deliver due diligence services throughout a project’s development phase; and for implementation phases we offer comprehensive monitoring, technical and financial risk management, as well as guarantee and collateral services. For financiers or banks providing funding to facilitate trade, we inspect, test and verify cargo and goods and perform collateral management and trade documentation assistance. Our knowledge of local, national and international standards and legislation enables us to meet the financial challenges facing any organisation.

industriAl mAnufActurinG

Our testing and conformity

assessments ensure processes

and projects meet all quality and

performance requirements and

minimise environmental impact.

Industrial manufacturers across a wealth of business areas, from pharmaceuticals to farm machinery, aerospace to automotive, and everything in between, rely on SGS for independent advice on growth strategy execution and market best practices. Whether an organisation is fabricating components or finished products to be sold directly to consumers, we understand its operations from process control to logistics. Due to the complex nature of manufacturing attention to national and international compliance with quality, health and safety legislation is essential. We ensure both products and processes comply with specific regulations related to the area of manufacturing. Our experts are skilled at helping our customers build more competitive and profitable businesses through our trustworthy, reliable and independent services.

we drAw on expert knowledGe for the full finAnciAl picture.

we mAke businesses more productive And profitAble.

we power processes from renewAbles to conventionAl enerGy GenerAtion.

Page 32: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

5958

sGs themes

environment

Our international team of experts provides guidance on everything from complying with environmental regulations to assessing environmental performance. We support and enhance reputations through state-of-the-art laboratory analyses, knowledgeable consultants, and specialised environmental and climate change services. The environment is at the top of the agenda for governments, civil society and citizens and is increasingly important for business and purchase decision-making, legislation and standards. We help with every aspect of environmental responsibility covering air, soil, water, waste, climate change and financial services. We also provide third-party assurance that goods exist and the right quality and quantity are delivered.

heAlth & sAfety

Our services make working environments as safe as possible by carefully performing risk assessments and executing preventative measures. Occupational health and safety is a major consideration for successful businesses. We ensure that organisations have effective occupational health and safety systems in place to protect employees, generate customer confidence and enhance business reputations. Quality, Health, Safety & Environment (QHSE) policies also protect co-workers, family members, employers, customers, suppliers, nearby communities and other members of the public who are impacted by a workplace environment. We help with occupational or industrial hygiene, assessing working environments with regard to air quality, dust, noise and vibration, technical due diligence and hazardous substances. We are also experienced at environmental audits and economic and social sustainability evaluations.

risk mAnAGement

Our specialist risk management teams identify and quantify specific risks and make decisions about how to manage and mitigate them in the future. Whatever industry an organisation operates in, ensuring the safe execution and maintenance of all projects, operations and business activities, including trade, is a necessity. We draw on more than 50 years of risk management experience to deliver solutions for a broad range of economic sectors: agriculture to life sciences, mining to finance. Covering all aspects of risk management, equator principles monitoring and issues relating to cost management, we ensure our customers achieve identifiable schedule milestones and key performance indicators. We review transactions making sure they are secure and in full compliance with rules, regulations and industry best practices.

sustAinAbility

Our services focus on providing a more responsible, balanced and sustainable future. We help organisations ensure that they and their partners have efficient and manageable processes and systems in place, which comply with stakeholder requirements. We offer services covering everything from environmental responsibility and ensuring sustainable facilities and production, to minimising the risk of corruption and developing a better working or social environment. We can audit environmental management systems and undertake due diligence checks as part of certification programmes. We also help with supply chain management, social responsibility, traceability and training. As the world’s leading testing, inspection, certification and verification company we offer unrivalled experience, expertise and a global reach.

trAde

Our experts cover all aspects of trade activity to assess the associated risks in order to mitigate and minimise liability for successful trade transactions. Managing the risks associated with trade and financing trade is a complex process that needs practical and objective planning. We certify that products are compliant and that the commodities bought are of the specified quality and in the correct quantity. We provide the independent control and assurance that allows banks and the finance world to supply loans and letters of credit to those who trade. For countries upgrading their institutional infrastructure, we maintain a smooth flow of commerce in and out of their borders. Plus, we collate independent information for import and export tax purposes. Our services help global trade to function as efficiently and fairly as possible and ensure trust between trade partners.

trAininG courses & seminArs

People who are given proper training and support in their professional development are likely to be more motivated, proud of their position and responsibilities, and more skillful, knowledgeable and productive. Over the years, SGS has trained professionals at some of the biggest companies and government organisations in the world. Our training and development solutions are designed to help organisations and individuals improve personal competence and skills: core enablers of sustainable business development and competitive advantage. The courses we offer address learning objectives in areas such as quality and safety improvement, compliance, sustainability, the safety of products and systems, risk management and brand protection.

oil & GAs

Our robust technology,

knowledge-based approach and

dedication to quality and safety

allow us to provide innovative

solutions to every part of the oil

and gas industry.

Whether our customers are exploring, extracting, refining, transporting or marketing oil, gas, oil sands or other hydrocarbons, they turn to us for specialist advice and tailored solutions. We support upstream activities such as applied mineralogy, metering, measuring or hydrocarbons allocation with services that can be used independently or as packages. Our downstream services support distribution and retail, as well as the design and execution of optimisation processes and global trade inspection. Throughout both sectors our services enrich the value chain and impact on everything from transport fuel and heating products, to plastics, fertilisers and pharmaceuticals. Organisations partner with SGS to support them in achieving efficient processes and in maximising production.

public sector

We offer verification and

technology-based solutions,

covering compliance assessment,

government revenue, trade

facilitation, good governance and

sustainable development.

We cannot replace public infrastructure but our expertise in public protection through border control is unrivalled, while our road safety solutions offer everything needed to ensure an effective transport system. Our e-government services touch on almost every aspect of everyday life and we have a broad range of quality management systems and health, safety and environment solutions. Our services are tailor-made to integrate and enhance existing policies and processes, or to act standalone as part of a broader package. By working with us, public sector organisations are able to improve customer experience while reducing costs, timescales and backlogs.

we ensure sustAinAble development of public sector services.

we enrich quAlity And vAlue in the explorAtion, extrAction And distribution of hydrocArbons.

sGs by industry

Page 33: AnnuAl report - business review - SGS · 2016-02-17 · sGs Applied technoloGy & innovAtion center 28 sGs e-mobility 34 sGs vitrolo Gy 40 sGs intron 46 sGs environment Al services.

www.sGs.com

© S

GS

Gro

up

Man

agem

ent

SA

– 2

013

– A

ll ri

ght

s re

serv

ed

- SG

S is

a r

eg

iste

red

trad

emar

k of

SG

S G

rou

p M

anag

emen

t S

A