SGS SA» Currency translation exposures particularly ... The stable outlook reflects primarily the solid positioning in ... Despite a significant exposure to

CORPORATES

CREDIT OPINION25 January 2018

Update

RATINGS

SGS SADomicile Switzerland

Long Term Rating A3

Type LT Issuer Rating - DomCurr

Outlook Stable

Please see the ratings section at the end of this reportfor more information. The ratings and outlook shownreflect information as of the publication date.

Analyst Contacts

Martin Hallmark 44-20-7772-1953Senior Credit [email protected]

Zineb Benchemsi 44-20-7772-1726Associate [email protected]

Richard Etheridge 44-20-7772-1035Associate MD-Corporate [email protected]

SGS SAUpdate to Credit Opinion Following 2017 Results

SummarySGS SA (SGS or the company) is the market leader in the global testing, inspection andcertification (TIC) industry. The sector has solid growth fundamentals driven by a range offactors, in particular the increase in private consumption and demand for higher productquality in emerging markets, together with increasing regulation and focus on matters ofhealth, safety, food and environmental standards globally.

SGS has a relatively high level of sector and geographic diversity which helps to supportstability of earnings, delivering positive annual organic revenue growth throughout theeconomic cycle. However it also has substantial exposures to cyclical sectors, notably withinthe oil, gas and chemicals division (representing approximately 18% of revenues in 2017)and the minerals and mining division (11% of 2017 revenues). Pressure on these sectors hascontained growth since 2013 however recoveries commenced in 2017 and with a positiveeconomic outlook for the majority of SGS's markets and positive sector fundamentals thisshould stimulate growth in the mid-single digits over the next 12-18 months.

The TIC industry is poised for significant technological change as developments in roboticsand sensors, digitalisation, artificial intelligence, crowdsourcing and blockchain are set totransform TIC services and how they are delivered. This has the potential to disrupt themarket in the medium term however leading players such as SGS are well placed to adaptand take advantage of the opportunities it will present. We expect substantial businesstransformation and additional investment as SGS develops its ongoing technology strategy.

The company achieves high adjusted operating margins (15.3% in 2017, reported basis),and the company targets further margin growth of 2.7 percentage points through to2020. Cyclical upturn, and initiatives in procurement, productivity and digitalisation areexpected to support this. However we envisage some challenges to reach this target comingfrom price pressure in certain commoditised testing, investments in the business modeland technology and the potential need to share some margins with both customers andtechnology providers.

The company delivers high levels of operating cash flows and has conservative balancesheet and financial policies. At 31 December 2017 reported net leverage was 0.6x. Moody's-adjusted gross leverage was 1.9x and we expect this to remain in the range 1.7x-1.9x, withacquisitions and shareholder distributions likely to be financed largely from existing cashgeneration.

https://www.surveygizmo.com/s3/1133212/Rate-this-research?pubid=PBC_1109283

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 1

Organic revenues are expected to benefit from a sustained recovery in cyclical segments% change in organic revenues (LHS) and Moody's-adjusted leverage (RHS), 2015-2019 (f)

2.1x

1.7x

1.9x1.8x

1.7x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2015 2016 2017 2018 (f) 2019 (f)

Leverage Group Cyclical Segments Non-Cyclical Segments

Moody's Forecasts

Revenue growth of cyclical segments represented by Oil, Gas & Chemicals, Minerals and Industrials Divisions; non-cyclical segments represented by all other divisionsSource: Company reports, Moody's estimates

Credit Strengths

» Strong long-term track record of growth through the cycle and positive long-term industry growth dynamics

» Market leadership, global reach and sector diversity

» Cost saving opportunities offsetting price pressure in mature segments and costs of internal systems and business development

» Low leverage, high operational cash generation and solid liquidity

Credit Challenges

» Exposure to oil and gas and minerals sectors with fluctuations in capital investment cycles and commodity prices

» Increasing digitalisation and technological changes within the market

» Currency translation exposures particularly to depreciating emerging markets currencies

Rating OutlookThe stable outlook reflects primarily the solid positioning in the A3 category and our expectation that the company will generatecontinued positive organic growth, that the long-term growth outlook of the industry is sustained and that the company maintainsconservative financial policies with low leverage and solid liquidity.

Factors that Could Lead to an UpgradePositive pressure on the ratings could arise if (1) Moody's-adjusted leverage falls comfortably below 2x on a sustainable basis; (2)EBITDA margins remain stable; and (3) the company maintains a conservative financial policy.

Factors that Could Lead to a DowngradeNegative ratings pressure could develop if (1) Moody's-adjusted leverage increases above 2.5x on a sustainable basis; (2) there is amaterial decline in EBITDA margins; or (3) the company adopts more aggressive financial policies in relation to leverage, shareholderdistributions and/or liquidity.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page onwww.moodys.com for the most updated credit rating action information and rating history.

2 25 January 2018 SGS SA: Update to Credit Opinion Following 2017 Results


Key Indicators

Exhibit 2

12/31/2012 12/31/2013 12/31/2014 12/31/2015 31/12/2016 [2]31/12/2017 [3] 31/12/2018F [3] 31/12/2019F

Revenue (USD Billion) $5.9 $6.3 $6.4 $5.9 $5.9 $6.6 $7.0 $7.4

EBITA Margin 17.6% 17.5% 16.8% 16.9% 15.5% 15.5% 15.8% 15.9%

Debt / EBITDA 1.5x 1.3x 1.7x 2.1x 1.7x 1.9x 1.8x 1.7x

EBITA / Interest 16.1x 16.8x 16.3x 15.3x 16.7x 15.8x 17.0x 18.2x

RCF / Net Debt 53.0% 69.0% 60.7% 27.8% 37.6% 43.4% 40.8% 38.9%

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.[2] Preliminary data, based on 2017 unaudited accounts.[3] This represents Moody's forward view, not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestituresSource: Moody's Financial Metrics™

Company ProfileSGS is the global leader in the testing, inspection and certification market. The company is headquartered in Geneva, Switzerland and islisted on the Swiss Stock Exchange. The company's market capitalisation was CHF19.4 billion as at 23 January 2018.

SGS operates a network of approximately 2,400 offices and laboratories worldwide and employs over 95,000 staff. In 2017 thecompany reported revenues of CHF6.3 billion and adjusted operating income of CHF969 million.

Detailed Credit ConsiderationsLong-term track record of positive organic growth and positive long-term growth fundamentalsSGS has delivered positive organic revenue growth through the cycle, with a low of 1.3% in 2009 and positive growth in each of thelast 10 years. This reflects the company's high sector, geographic and customer diversity and its entrenched positions with customers.Customer retention rates are very high supported by the company's strong reputation, the low relative cost of its services andintegration of upstream laboratory activities into customer operations.

Exhibit 3

Organic revenue growth has remained positive over the last 10 years

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Company

Despite a significant exposure to cyclical sectors, as detailed further below, SGS benefits from high levels of sector diversity and stronglevels of growth within the TIC sector as a whole. This is driven by a range of factors, in particular increasing regulation and regulatorydemand for independent testing, increasing customer focus on regulatory compliance and risk management, greater demand forproduct quality amongst emerging markets consumers, the growing complexity and globalisation of supply chains, and growingconcerns over environmental, health and safety and food standards. These factors have historically driven growth (excluding cyclicalfactors) in the mid to high single digits. Positive changes in regulatory regimes, in particular in vehicle emissions testing in Europe and inenvironment and health and safety in the US are likely to provide continued positive growth momentum.



High levels of sector and geographic diversitySGS is organised as nine divisions operating across a diverse range of sectors and geographies. Revenues are spread across Europe,Middle East and Africa (EMEA, 44.4% of 2016 revenues), Asia Pacific (30.0%) and Americas (25.6%). Emerging markets in totalrepresent approximately 50% of revenues and are a key driver of growth due to increasing trade flows, improving product qualitystandards and growth in private consumption.

The largest customers include oil majors, national governments, retailers and energy companies, whilst customer concentration islow. The diversity of revenues has enabled the company to achieve long-term positive organic growth at a group level over periods ofconstraints in capital investment and in commodities-related markets.

Leading market position and higher growth rates and diversification than the leading competitorsSGS is the global leader in the TIC market, with the highest levels of growth and sector diversity amongst the top three global players.Bureau Veritas and Intertek are the #2 and #3 players respectively and closest competitors in terms of sector coverage, and SGS hasthe lowest exposure to upstream oil and gas segments amongst the top three companies. The company also competes with a numberof more sector-focused operators such as Eurofins (food and biopharma), ALS Group (minerals and life sciences), Core Labs (oil andgas) and Applus (automotive and industrial). Beyond the major players the market is highly fragmented with over 25,000 commerciallaboratories as well as in-house and government-run operations.

SGS is the leading player in the majority of its divisions including Oil, Gas and Chemicals Services (OGC) (the company estimatedapproximately 30% global market share in 2014), minerals (45%), consumer testing (10%), agricultural (60%), automotive (20%) andsystems and services certification (10%), and with a circa 5% share in the fragmented industrial segment.

Increasing digitalisation and technological changes within the marketThe TIC sector is well-suited to technological innovation and is expected to see considerable change both in the way services aredelivered and in the digitalisation of its customer base. Innovations in robotics, automation, the use of sensors, data analytics, artificialintelligence, crowdsourcing and blockchain are expected to change the industry over the next five years. In addition the growth of e-commerce is changing the nature of TIC requirements with sourcing, fraud detection and assurance and cyber-security key serviceelements.

These changes are expected to bring opportunities but also the threat of disruption. Virtual TIC brokers or a crowdsourcing model mayprovide field inspections at lower costs than the networks of existing providers. The larger e-commerce providers such as Amazon andAlibaba may seek to self-certify and limit the demand for independent testing.

However we view the larger TIC companies such as SGS as well placed to respond to these challenges, with their scale, strengthof reputation, global networks and long-term customer relationships enabling companies to invest in and commercialise newtechnologies. We also expect third party testing to gain share supported by its greater reliability and the complexity of digital supplychains.

SGS is adapting its offering in response to these changes with an investment programme to improve its technology platform anddevelop its business model as well as through selective technology-driven acquisitions. We expect that the costs of this transformation,and the potential need to share some of the industry margins with technology providers, may make the company's margin ambitionschallenging.

Exposure to cyclical oil and gas and minerals marketsWhilst there is a broad sector diversity SGS is exposed to certain commodity markets, in particular the oil & gas and minerals & miningsectors. The OGC division represented approximately 18% of group revenues in 2017, with significant additional exposure to thesector within the industrial division (14% of 2017 revenues). SGS's exposure is spread across the entire value chain from explorationand production, distribution, refining and retail. Approximately 2% of group revenues are derived from upstream exploration andproduction activities which are most exposed to variations in the oil price. The minerals sector represented approximately 11% of2017 group revenues, and has shown significant volatility historically, as it has gradually moved upstream from trade inspection togeochemistry services for exploration.



Exhibit 4

Organic revenue growth for cyclical sub-sectors over the last 10 years

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mineral Oil, Gas and Chemicals Industrial

Source: Company

The OGC and minerals divisions recovered strongly in 2017 following prolonged downturns, since 2013 and 2014 respectively. Inparticular the minerals division grew revenues by 5.2% organically in 2017, after annual reductions averaging 3.5% since 2013. Arecovery in upstream exploration and production supported growth of the OGC division where organic revenues grew 3.2% in 2017.However the industrial division continued to decline in 2017 driven by late-cycle effects as volume reduction and price pressure affectproduction plant maintenance contracts.

We expect oil and gas companies to maintain relatively stable / low growth in capital expenditure in 2018 and for the OGC division tomaintain its low single digit revenue growth. We forecast the metals and mining sectors to remain stable in 2018 after the recovery in2017 with stable prices, supported by a positive economic outlook across emerging markets in particular with solid growth in Chineseindustrial production.

In total the OGC, minerals and industrials divisions represented 43% of 2017 revenues, a gradually declining proportion of the totalgroup as the company continues to diversify and shift towards other sectors. The remaining business continued to record solid results,with approximately 6.2% organic revenue growth in 2017.

Exposure to emerging market currencies and risks of ongoing currency depreciation against the swiss francCurrency movements have had a significant impact on historic trading results, as the company has very limited trading activity in CHF(approximately CHF20 million revenues and CHF100 million costs in 2014). Adverse currency movements have been experienced ineach year since 2009 except for 2012 and 2017.

The largest currency exposures are to the euro (26% of 2017 revenues), US dollar (14%), and the Chinese renminbi (13%), and aroundhalf of revenues are in emerging markets currencies. The high emerging markets exposure is likely to give rise to long-term currencydepreciation given the higher inflation rates in these economies. The company seeks to mitigate these risks through both inflation andcurrency indexation in a proportion of its contracts.



Exhibit 5

Currency effects have reduced revenues by just under 2% on average since 2012Annual revenue impact of currency movements 2008-2017

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Currency impact on revenues Average 2008-17 Average 2012-2017

Source: Company presentations, Moody's analysis

In 2017 SGS benefited from favourable currency movements against the Swiss Franc, notably through the recovery of the Brazilian Realand the Euro, in total adding 0.7% to revenue growth.

As a result of exposure to depreciating emerging markets currencies we expect that SGS will continue to experience currencydepreciation reducing revenue growth by an average rate of around 1-2% per annum, although with significant annual variations.

Low leverage and high operational cash generationLeverage is low with Moody's-adjusted gross leverage of 1.9x at 31 December 2017, after adjusting for pensions and operating leases.The company retains significant levels of cash and marketable securities of approximately CHF1.4 billion at 31 December 2017 andnet leverage is only 0.6x on a Moody's-adjusted basis. Cash generation is strong with low debt servicing costs and leading to reportedoperating cash (before capex) conversion of between 79% and 85% of EBITDA over 2015-2017.

The company's financial policy remains conservative. The company plans to accelerate its M&A activity in the next three years, witha target of acquiring revenue of CHF1 billion over 2016 to 2020, of which approximately CHF300 million has been added through to2017. However this remains low in the context of cash generation and the conservative balance sheet. Similarly dividend distributionsand the company's share buyback programmes tend to be financed from internally generated cash with limited requirements foradditional debt funding. Whilst the company has not stated a leverage target, we expect it to maintain a conservative financialstructure with leverage in the range 1.7x to 1.9x on a Moody's-adjusted basis.

Requirement for strong governance and control environment to protect reputationThe company's reputation as a trusted provider is critical to its success and any decline its standing, through poor quality of testing orweakness in its control environment could have a material effect. The company has a strong control culture to protect its reputation.It operates staff rotation, has a matrix reporting structure with local country managers and divisional heads, and carries out internalaudit procedures including random inspections and issuing anonymous samples to test quality and accuracy of results. Quality issuescontinue to be relatively limited and isolated in nature.

Liquidity AnalysisThe company has a solid liquidity position with balance sheet cash and marketable securities of approximately CHF1.4 billion at 31December 2017. It also has CHF600 million committed facilities available until 2021 which were undrawn as at 31 December 2017.



Rating Methodology and Scorecard FactorsThe principal methodology used in rating SGS was the Business and Consumer Service Industry Rating Methodology published inOctober 2016. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Exhibit 6

Business and Consumer Service Industry Grid [1][2]

Factor 1 : Scale (20%) Measure Score Measure Score

a) Revenue (USD Billion) $6.6 Baa $7-7.2 Baa

Factor 2 : Business Profile (20%)

a) Demand Characteristics A A A A

b) Competitive Profile A A A A

Factor 3 : Profitability (10%)

a) EBITA Margin 15.5% Ba 15.5% - 16% Ba

Factor 4 : Leverage and Coverage (40%)

a) Debt / EBITDA 1.9x A 1.7x - 1.9x A

b) EBITA / Interest 15.8x Aa 17x - 18x Aa

c) RCF / Net Debt 43.4% A 35% - 40% Baa

Factor 5 : Financial Policy (10%)

a) Financial Policy A A A A

Rating:

a) Indicated Rating from Grid A3 A3

b) Actual Rating Assigned A3

Current

12/31/2017

Moody's 12-18 Month Forward View

As of 1/23/2018 [3]

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. [2] Based on unaudited accounts as of 12/31/2017.[3] This represents Moody's forward view; not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestitures.Source: Moody's Financial Metrics™



APPENDIX

Exhibit 7

SGS SA Summary Financial Metrics and ProjectionsIn CHF million 2015 2016 2017

[1]2018 proj

[2]2019 proj

[2]

INCOME STATEMENT

Revenue 5,712 5,985 6,349 6,718 7,214

EBITDA 1,344 1,308 1,384 1,469 1,574

EBIT 916 884 957 1,020 1,105

Interest Expense 63 56 62 62 62

BALANCE SHEET

Cash & Cash Equivalents 1,490 975 1,383 1,160 963

Total Debt 2,845 2,287 2,659 2,657 2,657

CASH FLOW

Capital Expenditures 434 408 400 434 449

Retained Cash Flow (RCF) 376 493 550 587 641

RCF / Debt 13.2% 21.6% 20.7% 22.1% 24.1%

Free Cash Flow (FCF) 69 132 82 132 165

FCF / Debt 2.4% 5.8% 3.1% 5.0% 6.2%

PROFITABILITY

% Change in Sales (YoY) -2.9% 4.8% 6.1% 5.8% 7.4%

EBIT Margin % 16.0% 14.8% 15.1% 15.2% 15.3%

EBITDA Margin % 23.5% 21.9% 21.8% 21.9% 21.8%

INTEREST COVERAGE

EBIT / Interest Expense 14.5x 15.7x 15.4x 16.4x 17.8x

EBITDA / Interest Expense 21.3x 23.3x 22.2x 23.7x 25.4x

(EBITDA - Capex) / Interest Expense 14.4x 16.0x 15.8x 16.7x 18.1x

LEVERAGE

Debt / EBITDA 2.1x 1.7x 1.9x 1.8x 1.7x

Debt / (EBITDA - Capex) 3.1x 2.5x 2.7x 2.6x 2.4x

Net Debt / EBITDA 1.0x 1.0x 0.9x 1.0x 1.1x

[1] - Preliminary data incorporating Moody's estimates[2] - This represents Moody's forward view, not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestituresSource: Moody's Financial Metrics™, Moody's projections

Ratings

Exhibit 8Category Moody's RatingSGS SA

Outlook StableIssuer Rating -Dom Curr A3

Source: Moody's Investors Service



© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDITRISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THERELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITYMAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGSDO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’SOPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVEMODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’SPUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOTPROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THESUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATIONAND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FORPURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FORRETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACTYOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW,AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTEDOR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANYPERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSESAND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as wellas other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information ituses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However,MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for anyindirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use anysuch information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses ordamages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of aparticular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatorylosses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for theavoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents,representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCHRATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (includingcorporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating,agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintainpolicies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO andrated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually atwww.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s InvestorsService Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intendedto be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, yourepresent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly orindirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion asto the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be recklessand inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or otherprofessional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’sOverseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a NationallyRecognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by anentity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registeredwith the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferredstock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it feesranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

REPORT NUMBER 1109283


http://www.moodys.com

Documents

SGS SA» Currency translation exposures particularly ... The stable outlook reflects primarily the solid positioning in ... Despite a significant exposure to