SUMMER 2016 | 1

I would like to thank all of you for providing so much valuable input in the re-cent employee surveys. Due to the feedback and follow up discussions with

employee focus groups, we have gained a deeper insight into how we can make the SGS experience more rewarding and fulfilling.

A few key themes were consistent-ly highlighted by a large number of our team members across the re-gion. Initial steps have been taken in parts of the region, progress is being made, and further plans are being implemented. Communication – Clearly there is much more we need to do to engage employees, communicate more ef-fectively, and provide information people want. In Mexico City, the leadership has kicked off town hall meetings, and conducted a more in-depth survey of its support func-tions. We are already seeing some best practices in Canada migrate south to the US, including a video introduction from the newly appoint-ed MD, Dave Smercina. We would really like to build on this newsletter with more interactive forums. While many of the round table forums and leadership visits and site walk through were productive, we believe we can better utilize social media for internal and external communica-tion.

Along with helpful responses to this newsletter, we have many em-ployees in the country active on Yammer, the SGS social networking

site. Across the network, more fre-quently and in greater numbers the internal monitors are broadcasting information such as service anniver-saries, upcoming events, safety tips, quality milestones and employee health insurance reminders.

Sustainability – The interest and participation in volunteerism and community support is impressive. Because of your input, we are also working toward a charitable giving program that will directly affect our employees on both the giving and receiving end. The program is cur-rently in development with an aim toward having it up and running in the first quarter of 2017.

Large, medium and small volunteer projects occur throughout the year enabling SGS employees to give back to the communities in which we do business and raise our fam-ilies. In the case of devastating natural disasters, the community outreach takes us across state and national borders.

Growth and Development – I believe we can do more at all man-agement levels to better understand how our team members are doing, what future interests and devel-opment they would like to pursue, and what personal aspects should be considered in supporting career development such as location pref-erences. I am pleased that these discussions are beginning to occur more regularly in some areas of the business, but there is much more to do in order to ensure it is wide-spread and resulting in true career development.

INSIDE THIS EDITION

New MD for SGS USA

Pg. 2

Louisiana Floods

Pg. 3

SGS Canada AGRI opens new lab

Pg. 4

75th Anniversary of Lakefield, Ontario

Pg. 5

Be Healthy for Life

Pg. 6

Partnering to Win - Spectra Energy

Pg. 7

Perseverance pays off for SGS employee

Pg. 8

There are approximately 8000 team members across the region. Many are well-trained with high levels of experience. But this is not some-thing we can take for granted. Tai-lored training programs and suc-cession is not only essential to our success as a business, it has been strongly emphasized in all of the feedback we received.

THANK YOU for your feedback, keep it coming, and please don’t wait until the next survey if there is something we need to hear now.

EMPLOYEE SURVEYS PROVIDE DEEPER INSIGHT AND RENEWED FOCUS

SUMMER 2016 | 2

As some of you may have already heard or perhaps read in the recent an-nouncement from Kimmo

Fuller, I have accepted the role of Managing Director for SGS United States.

Just a bit of background on me, I’ve worked for SGS for over 30 years, the past 3 years as the Managing Di-rector for SGS Canada. Prior to that, I was in a variety of roles in the Min-erals business in the US. So I come back to the US with an understand-ing of how the business is organized and I am familiar with many of the people in it. A lot has changed in the last 3 years and I am excited to start working with the various groups to better understand the businesses.

Having spent my career in SGS, as you might expect I am very passion-ate about the company. SGS has the right values and focus. And I also know the work we do is important. It adds value not only to our custom-ers but to our communities and so-ciety as well.

SGS has recognized the potential and is committed to invest and grow the business in the US, the world’s largest economy. For all of us, this will be an especially exciting time to be part of this business and contrib-ute our talent and energy towards growing our business together.

Along with growth we will focus on fulfilling the goal of being the most competitive and the most productive service organization in the world. I believe these goals align perfectly with the values you and I share as Americans.

We seek to be driven by passion, integrity, innovation and the en-trepreneurial spirit that anything is possible. To this day, I still wake up every morning knowing that every day spent at SGS is an opportunity to grow.

Our growth and improvement will be underpinned by our commitment to the health and safety of our work-force.

I believe health and safety are em-bedded into the culture of SGS and as such, I am confident we will con-tinue the journey to make improve-ments in this area. Always stay fo-cused and take care of yourself and your colleagues.

SO WE BEGIN THIS JOURNEY TOGETHER

My personal philosophy in life is to lead by example and my commit-ment to you is that I will work every day towards helping us grow and im-prove. I know we have great people in this company and I look forward to renewing acquaintances with former colleagues and making new ones.

I would like to end with the same piece of advice I gave to my col-leagues in Canada in my farewell. I urge you to enjoy your time here. I have always believed that SGS is a company where you can turn a job into a career and a career into a pas-sion.

Thank you for your time and see you soon.

I have always believed that SGS is a company where you can turn a job into a career and a career into a passion.

IT’S HOMECOMING FOR NEW MANAGING DIRECTOR OF SGS USA

CLICK TO WATCH DAVE’S MESSAGE TO SGS USA OR SCAN WITH YOUR MOBILE DEVICE.

SUMMER 2016 | 3

In mid-August, Baton Rouge and surrounding parishes received pro-longed rainfall that resulted in un-precedented flooding and a national emergency declaration.

Some areas received as much as 31 inches of rain in less than 15 hours, which has been labeled a 1,000 year flood event. Many of the areas that flooded were not considered flood zones, so the residents did not carry flood insurance. Thousands of businesses and schools are now closed while they attempt to renovate buildings and replace vehicles. Thankfully, our SGS office buildings were unaffected, however over 200 SGS employees lost their homes and/or vehicles to floodwaters. Colleagues have united to assist each other with temporary housing, cleanup, meals, donations, and work responsibilities.

An SGS employee relief fund has been set up to aid employees affect-ed by the flood. Donations are com-pletely voluntary and are not tax-de-ductable.

Please be sure to include your name and return address (if it differs from the information on your check).

Deadline for donations is September 30, 2016. Make checks payable to:SGS NA Disaster Relief AccountMemo: 30821467 - 021000089

Mail checks to:SGS Petroleum Service CorporationAttn: Claire McCrary725 Main StreetBaton Rouge, LA 70802

HISTORIC FLOOD AFFECTS LOUISIANA SGS EMPLOYEES

PHOTO CREDIT: CASEY SUTTON

Cassey Sutton, Operations Coordinator in St. Rose, LA, saved over 250 people on his own boat that he built himself.

PHOTO CREDIT: SGS USA

SGS Petroleum Service Corporation employees rallying together to assist their colleagues Kedrick and Tracy Jackson with the “gutting” of their home.

PHOTO CREDIT: SGS USA

SGS Petroleum Service Corporation co-workers Brett Murray and Jonosha Jackson assisting Keisha Tassin with the removal of sheetrock from her home in the aftermath of the flood.

SUMMER 2016 | 4

GUELPH, ON - Consumers want more information about their food, not less. Food processors want to know the ingredients they are buy-ing will meet consistency standards. And exporters want to sell a quality product that will maintain Ontario’s status as a reliable source for com-modities. The new Grains Analytical Testing Laboratory will meet all of these needs within the cereal grains value chain.

“What customers are looking for is a greater level of transparency of the food chain,” says Don Slobodzian, vice president of agriculture and food, SGS Canada. “We all know that wheat has many handoffs in the value chain and it transforms in the value chain. Every time it has a hand off, those customers are looking for science and a depth of knowledge in the quality attributes of the ingredi-ents they are buying.”

The Guelph, Ontario based Grains Analytical Testing Laboratory is a joint venture between Grain Farm-ers of Ontario and SGS Canada. It is the first time a producer organization and a private company have joined to open a lab of this nature in Canada. “The lab will help Grain Farmers of Ontario identify new marketing op-

portunities for our farmer-members by gaining a better understanding of the quality of Ontario cereal crops,” explained Mark Brock, chair of Grain Farmers of Ontario, at the grand opening of the lab in July. “The lab will also provide technical expertise to interpret analytical data and help position Ontario as a top supplier of high quality cereal commodities.”

The lab has full commercial capabili-ties for Ontario, Canadian, and North American millers and processors. It is equipped to conduct rheological testing, physical dough and bake testing, and protein level testing.

“There is no one test that is more relevant than another. It is a pack-age of information that needs to be considered and how it relates to end use,” notes Paolo Santangelo, commercial manager of the Grains Analytical Testing Laboratory. “For example, farmers tend to believe that high protein is what is wanted, but that isn’t necessarily the case depending on what the wheat is be-ing used for. Every process needs different parameters, values that we will obtain from these tests.” Know-ing which cereal varieties are meet-ing the needs of industry will help farmers plan their crop rotations and

help with their ability to market their grains.

“The ability to market the wheat crop is critical with world wheat production at an all-time high,” says Brock. “Ontario is a small player when it comes to production, but has been able to differentiate itself through consistently high quality products. The lab will not only help to meet the immediate needs of the industry, but will also help position Ontario in the future as a leader in domestic and export markets.”

“You need to continue to improve and innovate, and you need to con-tinue to ensure that you have great relationships with customers,” says Slobodzian. “One of the fundamen-tals in a good relationship is trust and transparency in the pipeline and so this is an opportunity for produc-ers within Ontario to know that they are going to have the confidence of global importers and food ingredient processors and a strong market for their product.”

In the future, the lab will also offer quality tests for corn and soybeans to provide value to all of our farm-er-members and ensure we are max-imizing the potential of these com-modities in domestic and international markets.

QUALITY ASSURANCE GRAINS ANALYTICAL TESTING LAB OPENS

CLICK TO WATCH A VIDEO OF THE GRAND OPENING OR SCAN WITH YOUR MOBILE DEVICE

PHOTO CREDIT: SGS CANADA On Monday, July 11, SGS Canada and Grain Farmers of Ontario officially opened the Grains Analytical Testing Laboratory. Located in Guelph, ON, this game changing facility will serve farmers across Canada and beyond.

SUMMER 2016 | 5

1941: Bill Hubler convinced the American Nepheline Corporation (ANC) to form a separate company focused on processing nepheline syenite. Housed on the grounds of an abandoned cement factory, initial operations started with only four employees. By 1944, a small re-search group had been established at the site to supply design engi-neers with reliable data for plant de-sign or equipment specification and generate sufficient data, as required for feasibility studies.

1950: After adopting the ‘Lakefield Research’ moniker and growing to seven employees, the site began to focus on specific areas of innovation and diversification to help the min-ing industry. From the 1950’s to the 1990’s, the Lakefield site added ex-tensive pilot plant abilities for miner-al processing and hydrometallurgical purposes, increased the analytical and mineralogy footprint to support metallurgical programs and stand alone projects, and formed an envi-ronmental analysis group to support the increased environmental regula-tion.

1990: Lakefield Research footprint grew to satisfy the mining industry on a global platform. During the de-cade, the mandate of the analytical group expanded under Russ Calow to provide custom assaying and consulting services to the mining, processing and environmental sec-tors. The growth eventually led to the creation of separate geochem-ical and environmental business lines.

1995: The senior management group at Lakefield bought Lakefield Research from Falconbridge and em-barked on a brief but very exciting 7 year adventure as private company, Lakefield Research Limited. New laboratory testing businesses were established in Chile, Brazil, Africa, Australia and the UK, while the most dramatic changes occurred right here on the Lakefield site. The struc-tural changes, along with significant global expansion as a private com-pany after 1995, led to enormous growth at the Lakefield site, with staff numbers peaking at over 500, along with a great many additions to our physical facilities and equipment inventories.

2002: The Lakefield Research foot-print globally had grown to over 1,000 staff members including engi-neers, geologists, biologists, chem-ists, financial professionals and sup-port staff. That same year, Lakefield Research was purchased by SGS and quickly became the flagship op-eration for SGS Minerals in Canada. SGS proved to be very supportive of the operations on the Lakefield site and the changes since 2002 have been good for the staff and the ser-vices offerend in Lakefield.

2016: SGS Canada Inc. celebrates 75 years of providing metallurgical and analytical testing to the min-ing industry globally. Over the past 75 years, the mining industry has turned to the Lakefield site for indus-try trusted, bankable metallurgy and geochemical analysis. SGS has in-vested handsomely in the Lakefield site, and Lakefield is now a world class metallurgical, analytical, tail-ings and storage facilities to support all of our activities and to accommo-date further growth in the next min-erals “boom cycle”.

SGS CANADA LAKEFIELD MILESTONE ANNIVERSARY

SUMMER 2016 | 6

BE HEALTHY FOR LIFE:BENEFIT FROM HEALTH REWARDS

Have you taken advantage of Health Rewards for you and/or your spouse? You can reduce your 2017 employee contributions up to $500 maximum per covered individual. Get a Health Provider Screening (MD) form by calling 1-866-868-5484 or go to https://register.wellness-inc.com/sgs.

Follow these easy steps:

• Register under Health Provider Screening Form • Enter self-reported information• Complete the data release consent and the participation consent• Then click Download Selected Form • Print the individually personalized Health Provider Screen-ing form and take it with you to your doctor’s appointment.

Call an Advocate4me representative using the phone number on your UHC ID card to find a physician near you and schedule a physical. Don’t forget to take your Health Provider Screening form with you. Once you have your biometric screening and physical, talk to your doctor about your numbers so you understand your current health and how you can improve your health. If applicable, review the alternative activities avail-able to receive rewards like calling a telephonic health coach at 1-800-478-1057.

Alternative Activities are:• Telephonic Coaching• Enroll in the Healthy Pregnancy Program• Preventive Screenings• Disease Management (Diabetes, Asthma, Congestive Heart Failure, Coronary Artery Disease) • Annual Physical

Now, sign in to www.myuhc.com and complete the RALLY Health Survey. Keep a confirmation of the completed Survey.

To review your rewards, go to www.myuhc.com, click on Rally, click on the Rewards tab, and click on View Details.

Your doctor’s appointment, biomet-ric screening, completion of the RALLY Health Survey and any alternative activity you engage in, must be completed by October 15th,. The one exception to this date is the Health Provider Screen-ing form must be sent from your doctors office (don’t forget the form needs to be signed by the doctor!) to United Healthcare by October 31st. The fax number to UHC is 855-845-2605.

Ok, now that you just increased your paycheck for next year, have you in-creased your 401(k) contribution?

INFORMATION APPLIES TO US EMPLOYEES ONLY

SUMMER 2016 | 7

Spectra Energy Corp, located in Houston, Texas, is a natural gas transmissions company with several major natural gas, oil, and natural gas liquid pipelines across North Ameri-ca and Canada.

Spectra Energy requires petroleum hydrocarbon analyses on samples collected along its pipeline systems. These liquid samples can produce contamination and corrosion issues within pipeline systems and thus cause concerns. Spectra Energy an-alyzes the samples for certain con-taminants and compositional analy-sis to aid in the identification of the source of these liquids.

Analysis turnaround times for the samples collected along Spectra Energy’s pipeline systems were his-torically very slow. Samples were being shipped from sample points in Canada to labs located in the United States, which involved a very diffi-cult and slow process. These sam-ples were also being subcontracted by SGS Accutest to other petroleum testing laboratories.

With the SGS integration of Accut-est, these samples are now being performed by SGS OGC labs located in Texas, and Nova Scotia, Canada. SGS Accutest facilities in Houston, TX and Dayton, NJ continue to pro-vide environmental analytical lab support to Spectra Energy, and are assisting the SGS OGC facilities with sample logistics, reporting and more.

Spectra Energy has seen improve-ments in sample analysis turnaround times, and the logistics and safety involved in sample shipments.

This winning SGS partnership also allows the client a “one-stop shop-ping” option for its analytical testing needs and reduces its number of approved vendors. Anticipated new SGS revenue for these projects is in the $100,000 per year range.

“Both our ability to collaborate within SGS and the high quality of our work on every front gives us a tremendous opportunity to grow our business, and it has definitely begun,” Wayne Boling, National Ac-count Manager, SGS Accutest – La-fayette, said. Truly a win-win-win for Spectra Energy-SGS Accutest-SGS OGC.

SGS ACCUTEST PARTNERS WITH SGS OGC TO DRAMATICALLY IMPROVE CLIENT TURNAROUND TIME

As the SGS integration continues, more and more collaboration is tak-ing place among business units re-sulting in a new awareness of the breadth and depth of our services. This results in more crossover busi-ness, increased revenue, and more satisfied and loyal clients. SGS EHS US is collecting collaboration stories we call “Partnering to Win” and are pleased to share our latest.

PARTNERING TO WIN

SUMMER 2016 | 8

HOUSTON, TEXAS - There are several advantages of attending a two-year school before heading off to a four-year university and one of the big-gest benefits is cost-savings.

Traditionally four-year institutions were the reputable choice for stu-dents after high school graduation, yet today many are opting to attend community colleges. With cost sav-ings being a major benefit, smaller class sizes is also at the top of list for students choosing community colleges.

Returning back to school, John Woodard of The Woodlands, said he went back to college after dropping out because he felt something was missing. The benefit of going to a two-year school, said Woodward, is it allows you to pace yourself before taking on more aggressive four-year college classes. Woodward went to a four-year college after high school, which he described as a miserable attempt for him.

After years of being out of school, he decided to major in business tak-ing classes at LSC-Montgomery and LSC-Kingwood.

“I wish now I had gone to a two-year school after high school. It’s a gradu-al progression; it is not like jumping with both feet into the fire. A two-year school gives you that intermedi-ate step,” said John.

“Attending LSC helped me to pre-pare for a four-year university. For in-stance the school helped me devel-op my writing skills and in business there is a lot of writing.”

John began with SGS back in 1994 as a field inspector in the Oil, Gas and Chemicals business. “I always felt that I could offer more, do more and the key to making sure that hap-pened was pursuing further educa-tion,” shared John.

In the fall of 2014, Woodwards re-ceived a Smith Hutson Scholarship to attend Sam Houston State Uni-versity and attend the Woodlands location.

He graduated SHSU and was ac-cepted into their graduate program; he plans on earning a Master of Business Administration degree.

Woodward once did not believe he was smart enough to go to college and now is excelling academically.

After excelling in his math classes at LSC, Woodard said it was a pivotal point for him. “I saw a path forming; I set goals, took baby steps and cel-ebrated all milestones leading to my degree. If I can do it anybody can do it,” he said.

He is now Area Manager for SGS, based out of Jacinto Port in the Houston, Texas area. Among oth-er things, he is responsible for the overall financial growth, health and safety and administration of employees and operations.

“I hate to use the word unlimited, but that is what it feels like SGS offers you. Unlimited opportunities to grow,” he concludes.

PHOTO CREDIT: SGS USAJohn Woodward lives in Kingwood. After years of being out of school he decided to go back and attended LSC-Montgomery and is now a graduate of Sam Houston State University and was recently accepted into their graduate program.

SGS EMPLOYEE, JOHN WOODWARD, IS LIVING PROOF THAT PERSEVERANCE PAYS OFF.

SUMMER 2016 | 9

This past July, SGS North America kicked off our NAM Innovation ini-tiative designed to drive business growth within our current TIC indus-try as well as beyond the current boundaries of this industry. We’ll do this by developing an ecosystem of communication across NAM to pro-mote and encourage ideas from our entire employee base.

Members of our NAM Innovation ecosystem will be working directly with Stephanie Hawkins, our NAM Global Innovation Team representa-tive, to submit ideas for evaluation. Approved ideas are subject to global funding and all participants will be recognized for their contribution in varying degrees depending on the success of the idea.

In order to qualify, ideas should rep-resent either continuous (extensions of our current service offerings) or disruptive (radical change of direc-tion) innovation within our business. We are specifically looking for ideas that may lead to new service offer-ings for SGS.

By press time, Canada will have hosted two Dragon’s Den events to generate ideas for Innovation this year, Mexico is launching an Innova-tion contest this month, and the US is promoting Innovation via individual business lines.

Stay tuned for more information and lots of Innovating in 2017!

In the meantime, send any ideas you may have to:

Stephanie.Hawkins@sgs.com

Ideation > Evaluation > Execution > AwardOUR GLOBAL INNOVATION PROCESS CONSISTS OF FOUR KEY STAGES

SGS NAM KICKS OFF INNOVATION CHALLENGE

We are specifically looking for ideas that may lead to new service offerings for SGS.

WE WANT TO HEAR FROM YOU! If you have any questions or contribution to this newsletter, please contact: VIOLA.CHAPA@SGS.COM NEXT ISSUE: Fall 2016 to be released approximately in November.