Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Merger or Acquisition (June 2023)
19 slides from Compagnie De Saint-gobain Sa's merger presentation, Jun 12, 2023
Slide 1: Saint-Gobain to Acquire Building Products of Canada Corp.
SAINT-GOBAIN TO ACQUIRE BUILDING PRODUCTS OF CANADA CORP. JUNE 12, 2023
Slide 2: Building Products of Canada acquisition fully aligned with Saint-Gobain strategy
Building Products of Canada acquisition fully aligned with Saint-Gobain strategy on light and sustainable construction Strengthen Group presence in North America with a leading position in Canada Enrich our product portfolio to offer complete solutions for the Canadian market Value-creating and grow
Slide 3: Together, a comprehensive portfolio of solutions for the growing Canadian market
Leading supplier of Leading roofing position in sustainable wood fiber Canada insulation Together, Saint-Gobain and Building Products of Canada offer a comprehensive portfolio of solutions for the growing Canadian market 3
Slide 4: #1 building materials manufacturer in North America
US$7.3bn Sales1 +16% Only North American Sales CAGR 18-221 manufacturer offering a full breadth of building materials 20% for light construction PLASTERBOARD INSULATION ACOUSTIC CEILINGS EBITDA margin1 Preferred brand for contractors and homeowners, partnered with leading distribution channels Power
Slide 5: Population Growth Supports New Build and Renovation
Strong Population Growth Aging Housing Stock Market Perspectives Supports New Build Supports Renovation 1 units needed by 2030 in Population increase due to 3 of Canada’s single family 5.8m Canada to meet demand >400k /year3 high immigration (~1% of 75% housing stock >20 years old ~4% CAGR 2 2022 Ca
Slide 6: Canada is a growing and profitable country for Saint-Gobain
Canada is a growing and profitable country for Saint-Gobain has a leading position in interior Saint-Gobain… solutions and siding in Canada But a very limited presence in roofing with no C$1.4bn +25% 18% manufacturing capability in Canada Sales1 Sales CAGR 18-221 EBITDA margin1 Siding …with strong c
Slide 7: Building Products of Canada: broad exterior solutions platform
C$435m C$111m 25% 3 460 2022 Revenues 2022 EBITDA 2022 EBITDA margin Manufacturing Plants Employees A broad exterior solutions platform, complementary to CertainTeed’s product portfolio One of only 2 roofing manufacturers STRONG POSITION in shingles in Canada established domestically with NATIONAL R
Slide 8: We have built a comprehensive offer in 18 months while doubling in size
We have built a comprehensive offer in 18 months while doubling in size 11 21 24 Manufacturing Manufacturing Manufacturing plants plants plants Exterior Exterior solutions Exterior solutions solutions C$0.9bn C$1.4bn C$1.8bn 2022 PF1 2022 PF2 2022 PF2 Interior solutions Interior Interior solutions s
Slide 9: Building Products of Canada brings leadership position in roofing
Building Products of Canada brings leadership position in roofing and completes Saint-Gobain’s exterior solutions portfolio Lightweight and sustainable 100% recyclable and Ceilings Siding Roofing and made of recycled wood Gypsum wood fiber Insulation Serves growing demand for Building envelope susta
Slide 10: Exterior and interior solutions
Roofing shingles Wood fiber insulation EXTERIOR SOLUTIONS Roofing membranes Siding (vinyl, metal, Waterproofing engineered wood) membranes Shakes Accessories Ceilings Plasterboard Glass wool insulation INTERIOR SOLUTIONS 10
Slide 11: Roofing: a key component for light construction
ROOFING • US$2.7bn in revenues and LEADING PLAYER in the US with DOUBLE-DIGIT ANNUAL GROWTH1 ROOFING • 85% SALES in renovation and remodeling (non-discretionary repairs) A KEY COMPONENT FOR LIGHT CONSTRUCTION • PREFERRED BRAND for contractors and homeowners driven by reputation for quality and servi
Slide 12: Shingles have the lowest installed cost and a low carbon footprint
Shingles have the lowest installed cost Shingles offer one of the lowest carbon footprint of all roofing products among common roofing products Installed cost of a typical roof1 Carbon emission factor of roofing products [US$ in thousands] [kg CO2 equivalent per m2 product] Shingles Natural slate Ti
Slide 13: CertainTeed US leveraged one commercial team for exterior solutions
Since 2018, CertainTeed USA has leveraged CertainTeed US one commercial team for residential exterior solutions Combined back office and ease-to-do business across all exterior solutions Interior Exterior solutions solutions Much improved sales coverage and customer territory management Gypsum Roofi
Slide 14: A trusted player, recognized for the quality of its products
A trusted player, recognized for the quality of its products Leverage our innovation for Leverage Saint-Gobain Drive sustainability unique full-range solutions technologies for roofing • • Leverage CertainTeed Enrich Building Products of Canada offer • Lighter and stronger shingles circular economy
Slide 15: Value creation in year 2: synergies ahead of plan
Value creation in year 2 Synergies ahead of plan Synergies ahead of plan Successful integration and Notably in purchasing savings Notably in supply chain and synergies exceeding plan manufacturing efficiencies Highly experienced local teams committed to delivering on value creation 15
Slide 16: Cost synergies
Total synergies (excl. Implementation costs) – • Align contracts on best rates for key inputs and further reduce prices with economies of scale EBITDA impact Procurement ✓ CertainTeed purchase volumes >8x greater than Building Products of Canada C$ m • Backward integration on various critical raw ma
Slide 17: Transaction terms, financing and process
• Enterprise Value of C$1,325m, i.e. 11.9x 2022 EBITDA multiple, 8.2x including full synergies (C$50m) FINANCIAL • Value creation by Year 3 TERMS • EPS accretive from Year 1 • Acquisition financed fully in cash FINANCING • Limited impact on net debt to EBITDA ratio (+0.1x), leverage remaining below
Slide 18: A value-creating and growth-driven acquisition
Enrich and reinforce Roofing Strengthen Group presence Very solid team to deliver and Exterior Solutions in North America strong value creation A value-creating and growth-driven acquisition for Saint-Gobain’s shareholders and customers 18
Slide 19: Grow: Impact
/ GROW: IMPACT /