Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — 9M 2024 Earnings Presentation
45 slides from Compagnie De Saint-gobain Sa's earnings presentation, October 2024
Slide 1: Recent Results and Outlook
RECENT RESULTS AND OUTLOOK October 2024 UAE Pavilion World Expo
Slide 2: 9-Month and Q3 2024 Sales
9-MONTH AND Q3 2024 SALES Fraunhofer IEE Institute Germany
Slide 3: Sequential Improvement in Sales in Q3 2024
SEQUENTIAL IMPROVEMENT IN SALES IN Q3 2024 Sequential improvement in organic growth Significant contribution from recent acquisitions in North America, Asia-Pacific and construction chemicals, with a positive 3.4% structure impact Don’t show bricks Further increase in operating margin expected in 20
Slide 4: 9-Month 2024 Sales
9-MONTH 2024 SALES 2024/2023 -3.9% like-for-like +0.5% -0.7% -0.8% -4.1% -3.1% Change Q3-2024/Q3-2023 36,520 35,039 (€m) FX Structure Price Volumes (€m) -1.3% +3.4% -0.5% -1.5% 9M-2023 Exchange Structure Price Volumes 9M-2024 sales rates sales 4 9M-2024 SALES
Slide 5: Europe, Middle East & Africa: Sequential Improvement in Sales
EUROPE, MIDDLE EAST & AFRICA: SEQUENTIAL IMPROVEMENT IN SALES -0.2% -1.6% -8.7% -6.9% Change Q3-2024/Q3-2023 FX Structure like-for-like 20,682 18,876 -0.2% -0.1% -4.5% 9M-2023 sales Exchange rates Structure like-for-like 9M-2024 sales Change in France Nordics Germany UK Spain-Italy 9M sales on a lik
Slide 6: Americas: Slight Organic Growth
AMERICAS: SLIGHT ORGANIC GROWTH +1.1% +3.1% +3.1% -1.1% Change Q3-2024/Q3-2023 FX Structure like-for-like 7,264 7,490 -3.6% +4.5% +0.8% 9M-2023 sales Exchange rates Structure like-for-like 9M-2024 sales Change in 9M sales North America Latin America on a like-for-like basis +2.7% -3.8% 6 9M-2024 SAL
Slide 7: Asia-Pacific: Good Resilience in Organic Sales
ASIA-PACIFIC: GOOD RESILIENCE IN ORGANIC SALES +18.3% +0.5% +15.8% -3.0% Change Q3-2024/Q3-2023 FX Structure like-for-like 1,587 1,838 -2.0% +49.0% -0.9% 9M-2023 sales Exchange rates Structure like-for-like 9M-2024 sales Change in 9M sales Asia-Pacific India on a like-for-like basis -3.9% +6.0% 7 9M
Slide 8: High Performance Solutions: Slight Organic Growth in Q3
HIGH PERFORMANCE SOLUTIONS: SLIGHT ORGANIC GROWTH IN Q3 +0.0% -2.9% -0.8% -2.1% Change Q3-2024/Q3-2023 FX Structure like-for-like 7,624 7,404 -1.8% +0.0% +0.7% 9M-2023 sales Exchange rates Structure like-for-like 9M-2024 sales Change in 9M sales Construction Mobility Other ind. on a like-for-like ba
Slide 9: 2024 Outlook
2024 OUTLOOK Despite a context which remains difficult in certain markets, Saint-Gobain expects a further increase in its operating margin in 2024 9 9M-2024 SALES
Slide 10: H1 2024 Highlights
H1 2024 HIGHLIGHTS Fraunhofer IEE Institute Germany
Slide 11: Light & Sustainable Solutions for Residential
Paris 2024 Olympics – Athletes’ Village 14 Saint-Gobain solutions LIGHT & SUSTAINABLE SOLUTIONS FOR RESIDENTIAL Portum Towers – Bratislava, Slovakia 11 7 Saint-Gobain solutions
Slide 12: Light & Sustainable Solutions for Non-Residential
Hotel St. Martin – Rome, Italy 11 Saint-Gobain solutions LIGHT & SUSTAINABLE SOLUTIONS FOR NON-RESIDENTIAL Meta Headquarters – Gurugram, India 12 7 Saint-Gobain solutions
Slide 13: Light & Sustainable Solutions for Renovation
Comprehensive solutions for renovation of Victorian houses, UK Leveraging world-class testing facility at the University of Salford LIGHT & SUSTAINABLE SOLUTIONS FOR RENOVATION University of Alberta – Canada 13 8 Saint-Gobain solutions
Slide 14: Light & Sustainable Solutions for Infrastructure
Ariane – French Guiana Meta 6Headquarters – Gurugram, Space Center India Comprehensive range 7 Saint-Gobain of high-performance solutions construction chemicals LIGHT & SUSTAINABLE SOLUTIONS FOR INFRASTRUCTURE Hotel Martin––Brazil St.Airport Floripa Rome, Italy 14 11 10Saint-Gobain Saint-Gobainsolut
Slide 15: H1 2024: Strong Results Despite a Challenging Environment
H1 2024: STRONG RESULTS DESPITE A CHALLENGING ENVIRONMENT Sales €23.5bn -4.9% like-for-like Record operating margin 11.7% vs 11.3% in H1 2023 Strong recurring net income €1.7bn Record levels of free €2.5bn cash flow 75% cash conversion ratio Paris 2024 Olympics – Athletes’ Village – Paris, France 15
Slide 16: Continues to Drive Success
CONTINUES TO DRIVE SUCCESS increasing year-on-year even in a challenging environment and continued Solutions approach increasing our Don’t show bricks reinforcing product mix and Significant milestones in strategic repositioning towards and Fraunhofer IEE Institute Germany 16 H1 2024 RESULTS
Slide 17: Expanding Presence in High-Growth Markets
EXPANDING Acquisition of Acquisition of FOSROC1 in PRESENCE IN CSR in construction HIGH-GROWTH Australia chemicals MARKETS ~€2bn sales Pic with some plasterboard also ~€450m EBITDA (including €100m of synergies in year 3) Change the image – same one as before or other Acquisition of Bailey in Canada
Slide 18: H1 2024 Results: Group
H1 2024 RESULTS Group CNESST HQ Quebec 18
Slide 19: First-Half 2024 Sales
FIRST-HALF 2024 SALES 2024/2023 -4.9% like-for-like -0.3% -0.8% Sequential improvement in volumes -1.0% -6.0% Prices stable sequentially -3.9% Structure impact turned positive in Q2 with the continuous optimization of the 24,954 Change Q2-2024/Q2-2023 23,464 Group’s profile (€m) FX Structure Price V
Slide 20: New Record Operating Margin
NEW RECORD OPERATING MARGIN Operating income in €bn and margin in % 2.8 2.8 2.8 Further improvement in operating margin, 2.4 reaching a new record-high of 11.7% 11.7% Operating income resilient in a difficult 11.3% environment 11.0% Positive price-cost spread 10.7% Proactive cost management H1-2021
Slide 21: New Record EBITDA Margin
NEW RECORD EBITDA MARGIN H1-2023 H1-2024 €m EBITDA 3,738 3,652 EBITDA margin 15.0% 15.6% Operating income 2,813 2,751 Non-operating costs (55) (125) Asset write-downs and impacts resulting from (150) (138) changes in Group structure Capital gains (losses) and other (314) (26) Net financial expense (
Slide 22: Record Levels of Free Cash Flow Generation
RECORD LEVELS OF FREE CASH FLOW GENERATION Free cash flow in €bn and conversion ratio in % 2.5 2.2 Very good cash conversion ratio of 75% New reduction in OWCR* 75% Strong cash culture 65% H1-2023 H1-2024 * Operating Working Capital Requirement 22 H1 2024 RESULTS
Slide 23: H1 2024 Results: Segments
H1 2024 RESULTS Segments Forest Campus, Warsaw Poland 23
Slide 24: Europe, Middle East & Africa: Sequential Improvement in Volumes
EUROPE, MIDDLE EAST & AFRICA: SEQUENTIAL IMPROVEMENT IN VOLUMES, CLOSE TO A LOW POINT; OPERATING MARGIN STABLE AT A RECORD LEVEL 1,259 -0.3% 1,125 -2.3% -10.5% -7.9% Change in volumes Q1 Q2 by quarter -8.2% -3.7% 8.7% 8.7% 14,397 12,890 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sa
Slide 25: Americas: Sales Growth in North America and Record Operating Margin
AMERICAS: SALES GROWTH IN NORTH AMERICA AND RECORD OPERATING MARGIN +1.2% +3.8% 945 +2.3% 852 +0.3% 19.0% 17.8% 4,784 4,967 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sales H1-2023 H1-2024 Change in sales on North America Latin America a like-for-like basis +4.1% -7.6% 25 H1 2024 R
Slide 26: Asia-Pacific: Organic Sales Growth and Record Operating Margin
ASIA-PACIFIC: ORGANIC SALES GROWTH AND RECORD OPERATING MARGIN -0.3% 130 134 +1.2% +1.9% -3.4% 13.0% 12.5% 1,036 1,033 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sales H1-2023 H1-2024 26 H1 2024 RESULTS
Slide 27: High Performance Solutions: Sequential Improvement in Organic Growth
HIGH PERFORMANCE SOLUTIONS: SEQUENTIAL IMPROVEMENT IN ORGANIC GROWTH AND STABLE OPERATING MARGIN -0.2% -3.8% -0.1% 633 610 -3.5% Change in sales on Q1 Q2 a like-for-like basis by quarter -5.4% -1.6% 12.3% 12.3% 5,163 4,969 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sales H1-2023 H1
Slide 28: Strategy
STRATEGY Fraunhofer IEE Institute Germany
Slide 29: We Have Repositioned the Group on Strong Markets
We have repositioned the Group 01 on strong markets 02 We have all the levers to outperform 29
Slide 30: Continued Repositioning Towards High-Growth Markets
CONTINUED REPOSITIONING TOWARDS HIGH-GROWTH MARKETS of sales rotated Share of Group operating income since end of 2018 35% North America 1 x3 Asia & emerging 18% 32% in € countries + 24% ~20% EBITDA / Sales of growth capex in North America, 58% 33% Western Europe Asia & emerging €9.4bn countries Bef
Slide 31: Structural Need for New Build & Renovation in North America and Emerging Markets
STRUCTURAL NEED FOR NEW BUILD & RENOVATION IN NORTH AMERICA AND EMERGING MARKETS 35% of Group ASIA & 32% of Group NORTH AMERICA operating profit EMERGING MARKETS operating profit Structural housing shortage Increasing levels of urbanization additional urban population in Asia current housing supply
Slide 32: Leadership Positions Established in Canada & Australia
LEADERSHIP POSITIONS ESTABLISHED IN CANADA & AUSTRALIA Paul Dalton CEO, CSR Collaboration in sales, distribution and product development, driving growth and market share gains in the US and Canada Enhanced customer offering with complementary solutions. Unlocking technical & procurement synergies in
Slide 33: Further Strengthening Our Growth Platform in Construction Chemicals
FURTHER STRENGTHENING OUR GROWTH PLATFORM IN CONSTRUCTION CHEMICALS DELIVERING WELL ON & AND SOON REINFORCING OUR POSITION WITH Know-how deployment across geographies for technical applications, e.g. tunnels Highly complementary geographic footprint with exposure to the high-growth markets of India,
Slide 34: Well-Positioned on the Resilient European Renovation Market
WELL-POSITIONED ON THE RESILIENT EUROPEAN RENOVATION MARKET WITH OUR COMPREHENSIVE SOLUTIONS • Recovery in household confidence • EED1 – compulsory decline in energy consumption in • Lower mortgage rates to support existing home public buildings transactions • EPBD1 – renovation of least performing
Slide 35: We Have All the Levers to Outperform
01 We have repositioned the Group on strong markets 02 We have all the levers to outperform 35
Slide 36: Structural Effectiveness Through Our Country-Led Organization
STRUCTURAL EFFECTIVENESS THROUGH OUR COUNTRY-LED ORGANIZATION 90% of CEOs native to their country Constant focus on price-cost management Country CEOs shaping tailor-made Proactive operational action plans to adjust solutions adapted to local nuances cost structure to market changes Agile decision-m
Slide 37: Leading One-Stop-Shop for Construction Solutions
LEADING ONE-STOP-SHOP FOR Mike Chaldecott CEO Saint-Gobain UK CONSTRUCTION SOLUTIONS & Ireland LOW-CARBON METAL FRAMES ROOF STEEL TRUSSES • Unique testing capabilities to FRAME PARTITIONS – demonstrate solution effectiveness REINFORCED ACOUSTIC, THERMAL, PLASTERBOARD MOISTURE & FIRE PROTECTION • Cus
Slide 38: Outperformance Through Differentiated Solutions
OUTPERFORMANCE THROUGH DIFFERENTIATED SOLUTIONS ENVEOVENTS CHRONO insulated exterior façade for thermal and acoustic comfort Reduction in energy consumption of the COOL-LITE® XTREM building double glazing with reinforced thermal insulation and solar control WEBER ETICS2 for external insulation Incre
Slide 39: Outperformance Through Innovation
OUTPERFORMANCE THROUGH INNOVATION country launches worldwide sales 8 by end-2024 3x 2023 vs. 2019 recycled 81 country launches 80% material 10 patents filed Group marketing & development team rolling out innovations across the Group 39 H1 2024 RESULTS
Slide 40: Outperformance Through Low-Carbon Offers
OUTPERFORMANCE THROUGH LOW-CARBON OFFERS CARBON INDICATOR 3.79 kg CO2 eq./sqm over 50 years Learn more Low-carbon plasterboard Low-carbon glass with Low-carbon production Additives and admixtures Publication of carbon with 70% lower carbon 42% lower carbon of siding (96% lower for low-carbon cement
Slide 41: The Group Is Strongly Positioned to Continue to Outperform
THE GROUP IS STRONGLY POSITIONED TO CONTINUE TO OUTPERFORM Square CSR house Value accretive capital Innovative and value- Leadership in sustainable allocation in high-growth added solutions enabling construction markets customer success 41 H1 2024 RESULTS
Slide 42: Important Disclaimer – Forward-Looking Information
IMPORTANT DISCLAIMER – FORWARD-LOOKING INFORMATION This presentation contains forward-looking statements with respect to Saint-Gobain’s financial condition, results, business, strategy, plans and outlook. Forward-looking statements are generally identified by the use of the words "expect", "anticipa
Slide 43: Recent Results and Outlook
RECENT RESULTS AND OUTLOOK October 2024 Luma Foundation France
Slide 44: 2023 End Markets Sales Split
2023 END MARKETS1 SALES SPLIT NEW RESIDENTIAL 7% 7% 7% 2% CONSTRUCTION 23% NEW NON-RESIDENTIAL 4% 3% 3% 1% 2% CONSTRUCTION 13% 14% 21% 9% 5% RENOVATION / INFRAST. 1% 50% INDUSTRIES 14% 14%2 NORTHERN SOUTHERN AMERICAS ASIA-PACIFIC HPS EUROPE EUROPE - 19% 4% 21% 25% ME & AFRICA 31% 1. Saint-Gobain est
Slide 45: Continued State Support in Energy Renovation
CONTINUED STATE SUPPORT IN ENERGY RENOVATION NETHERLANDS NORWAY DENMARK • Office buildings required to have minimum C class EPC • Publication in Oct-23 of an energy efficiency action plan DKK 30bn allocated from the National Building fund for • Additional borrowing capacity for energy renovations fo