Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Merger or Acquisition (2007)
17 slides from Compagnie De Saint-gobain Sa's merger presentation, 2007
Slide 1: Acquisition of Maxit
Acquisition of Maxit Saint-Gobain doubles the size of its mortars activity
Slide 2: Agenda: Strategic environment
Acquisition of Maxit I. Strategic environment I. Mortars market II. Weber and Maxit II. Strategic opportunity III. Financial information and timetable 2
Slide 3: Strategic environment: Mortars market
Acquisition of Maxit I. Strategic environment I. Mortars market II. Weber and Maxit II. Strategic opportunity III. Financial information and timetable 3
Slide 4: The mortars market (1/2)
The mortars market (1/2) « premix » Wide range of industrial preparations used in construction Prepared in the factory rather than directly on the construction site Masonry mortar Components: sand, gravel, cement, gypsum, additives, coloring… Wide range of added value products Sealant coating Produc
Slide 5: The mortars market (2/2)
The mortars market (2/2) Europe and emerging countries: €10 bn estimated market Growth 4000 In emerging countries: replacement of 3000 on-site production by « premix » 2000 In developed countries: growth in technically-advanced applications 1000 0 es a m e a ria y ly n e x si ic in an lu nc ai do It
Slide 6: Saint-Gobain's industrial mortars business
Saint-Gobain’s industrial mortars business Key figures 4,600 employees worldwide 80 industrial sites in 27 countries 2006 sales: ~ €1 billion Worldwide leader in wall facings and tile adhesives Strategy Product innovation Penetration of industrial products Recent geographical expansion South Africa
Slide 7: Maxit key figures: present in 30 countries
2006 sales by business equipment 7% expanded clay 21% Key figures 5,130 employees worldwide 103 industrial sites in 30 countries 2006 sales: €1.2 billion premix 72% Present in 30 countries 2006 sales by country German market leader other 18% Strongly positioned in specialized mortars Scandinavia in
Slide 8: Other activities
Other activities Expanded clay (2006 sales: €255 million) Replaces granules (lightweight, insulating) Filtration uses Expanded clay Product largely specific to Northern Europe Equipment (2006 sales: €80 million) Supplying construction equipment (pumps, projection equipment, mixers) Competitive advan
Slide 9: Strong growth in Europe and emerging countries
Strong growth in Europe and emerging countries 1 200 1 100 1 000 1 000 900 900 800 800 700 700 600 600 500 500 2002 2003 2004 2005 2006 2007 E 2002 2003 2004 2005 2006 2007E Sales Sales 2002-2007e CAGR: ~ +9% p.a. 2002-2007e CAGR: ~ +6% p.a. 9
Slide 10: Strategic opportunity
Acquisition of Maxit I. Strategic environment I. Mortars market II. Weber and Maxit II. Strategic opportunity III. Financial information and timetable 10
Slide 11: Benefits of the acquisition
Benefits of the acquisition Opportunity to double the size of a business fitting perfectly into Saint-Gobain’s strategy Related to housing products Profitable and low capital-intensive Strong growth, particularly in emerging countries Strong service and innovation components Synergies with other Gro
Slide 12: Example of synergies: External Thermal Insulation Compounds Systems (ETICS)
Example of synergies: External Thermal Insulation Compounds Systems (ETICS) Glass mesh cloth (textiles solutions) A market of more than €1 bn in Europe An accelerated growth in Central and Eastern Europe Finishing coat An insulating solution Base coat for eliminating thermal embedding the mesh bridg
Slide 13: Excellent geographical complementarity
Excellent geographical complementarity Italy 9% Germany Scandinavia 8% other 18% 32% UK 6% Eastern Europe 14% Spain 4% Benelux 4% Spain 12% Russia- France 29% Baltic countries 9% Brazil 11% Switzerland Germany 7% 26% other 11% 2006 Sales 2006 Sales €1 bn €1.2 bn Leadership positions Maxit: in German
Slide 14: Excellent geographical complementarity
Excellent geographical complementarity Strong Weber position Strong Maxit position Weber and/or Maxit presence
Slide 15: Excellent business complementarity
Excellent business complementarity other other sealing tile wall facings adhesives wall facings HAV* flooring flooring plaster tile concrete adhesives flooring mortar * High Added Value 2006 Sales Premix 2006 Sales €1 bn €0.9 bn Weber strong points: tile adhesives, one-coat mortar Maxit strong point
Slide 16: Financial information and timetable
Acquisition of Maxit I. Strategic environment I. Mortars market II. Weber and Maxit II. Strategic opportunity III. Financial information and timetable 16
Slide 17: An attractive acquisition
An attractive acquisition Approximately €30 million per year in cost synergies with Weber: Savings in selling, general and administrative expenses Purchasing (cement, sacks, vehicles, IT, etc.) Investment savings (pooling of manufacturing facilities) Major development synergies: cross-selling based