Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — FY2024 Earnings Presentation
45 slides from Compagnie De Saint-gobain Sa's earnings presentation, Feb 28, 2025
Slide 1: 2024 Results and Outlook
2024 RESULTS AND OUTLOOK February 28th, 2025
Slide 2: 2024 Highlights
2024 HIGHLIGHTS Benoit Bazin Chairman and CEO St. Regis Kanai Resort – Cancún, Mexico • Fire resistant & moisture retardant systems, plasterboard systems incorporating metal profiles, adhesives
Slide 3: Saint-Gobain solutions in landmark projects
Aosta Valley University IQHQ Research & Development District Aosta, Italy San Diego, US 9 Saint-Gobain solutions 9 Saint-Gobain solutions Sir Anerood Jugnauth Bridge Myer Horowitz Theater Port Louis, Mauritius Edmonton, Canada 3 8 Saint-Gobain solutions 7 Saint-Gobain solutions
Slide 4: Expanding our presence in high-growth markets
EXPANDING OUR PRESENCE IN HIGH-GROWTH MARKETS A key construction chemicals A leading player in Building player in India, the Middle-East materials in Australia and Asia-Pacific Major acquisitions in: • North America, Asia-Pacific and emerging markets • Construction chemicals A leading construction c
Slide 5: Low-carbon & energy-efficient solutions
LOW-CARBON & ENERGY-EFFICIENT SOLUTIONS DIFFERENTIATING OFFERING WELL-BEING AND PERFORMANCE BENEFITS OUR OFFER THROUGH SUSTAINABILITY made from 100% recycled gypsum HIGH-RECYCLED-CONTENT SOLUTIONS - 34% Scope 1 & 2 CO2 emissions1 2024 vs. 2017 67 % Carbon-free electricity in 2024 (+10% vs. 2023) 1.
Slide 6: Committed teams aiming higher
Carrefours photos ou convention + photos LinkedIn patronne Malaisie Linet ou Indonésie COMMITTED TEAMS Thailande AIMING HIGHER 89% of our employees proud to work at Saint-Gobain1 Top employer for the 10th year 1. Annual survey: >125,000 respondents 6
Slide 7: 2024 success: record results despite some challenging markets
2024 SUCCESS: RECORD RESULTS DESPITE SOME CHALLENGING MARKETS Sequential improvement €46.6bn in sales +1.6% H2-2024 vs. H2-2023 at constant exchange rates Record operating margin 11.4% vs. 11.0% in 2023 Record recurring net €3.5bn income vs. €3.4bn in 2023 Record free cash flow €4.0bn 62% cash conve
Slide 8: Consistently delivering on our strategy
CONSISTENTLY DELIVERING ON OUR STRATEGY Excellent operational execution with a new record margin despite a challenging environment in new construction in Europe Solutions approach, a key differentiator delivering increased pricing power, positive product mix and extended share of wallet Ongoing disc
Slide 9: 2024 Results – Group
2024 RESULTS Group Sreedhar N. Chief Financial Officer Ágora Caixa Forum Building – València, Spain • Complete cladding wall systems integrating Placo plasterboard and Isover insulation
Slide 10: Sales growth in H2 with a sequential improvement
SALES GROWTH IN H2 WITH A SEQUENTIAL IMPROVEMENT 2024/2023 -3.6% like-for-like +1.4% -0.6% -2.9% -0.7% -3.0% Sequential improvement in organic growth Sales growth in H2-2024 H1 H2 Like-for-like change Positive structure impact accelerating in in sales 47,944 -4.9% -2.3% 46,571 H2-2024, mainly CSR an
Slide 11: Further increase in operating margin despite a difficult environment in Europe
FURTHER INCREASE IN OPERATING MARGIN DESPITE A DIFFICULT ENVIRONMENT IN EUROPE Operating income in €bn and margin in % 5.3 5.3 5.3 4.5 Record operating margin at 11.4% and record operating income at constant exchange rates, despite volume pressure 11.4% 11.0% Increased or stable margin in all 10.4%
Slide 12: New record EBITDA margin and recurring net income
NEW RECORD EBITDA MARGIN AND RECURRING NET INCOME 2023 2024 €m EBITDA 7,001 7,205 EBITDA margin 14.6% 15.5% Operating income 5,251 5,304 Non-operating costs (236) (236) Asset write-downs and amortization of PPA (419) (524) Capital gains (losses), impacts resulting from (365) (167) changes in Group s
Slide 13: New record free cash flow generation
NEW RECORD FREE CASH FLOW GENERATION Free cash flow in €bn and conversion ratio in % 4.0 3.9 3.8 Reduction of 1 day in OWCR1 2.9 More than three-fold increase in cash generation since the transformation thanks to a now deep-rooted cash culture 62% 62% Net debt / EBITDA ratio at 1.4x 59% 53% Strong f
Slide 14: 2024 Results – Segments
2024 RESULTS Segments Sreedhar N. Chief Financial Officer The Amaryllis residence – New Delhi, India • Saint-Gobain Glass (energy-efficient solar control glazing), Gyproc (lightweight ceilings, smooth wall finish), Weber (tile adhesive, water resistance, joints)
Slide 15: Europe, Middle East & Africa: sequential improvement in sales and margin growth
EUROPE, MIDDLE EAST & AFRICA: SEQUENTIAL IMPROVEMENT IN SALES AND MARGIN GROWTH Sales (€m) Operating income (€m) and margin (%) 2,248 2,090 -0.2% -1.1% -7.6% -6.3% 8.4% 8.3% H1 H2 Like-for-like change 27,104 in sales 25,033 -7.9% -4.5% 2023 sales Exchange rates Structure like-for-like 2024 sales 202
Slide 16: Americas: sales growth and record margin
AMERICAS: SALES GROWTH AND RECORD MARGIN Sales (€m) Operating income (€m) and margin (%) +1.1% +3.9% 1,767 +4.4% 1,586 -1.6% 18.0% 16.8% H1 H2 Like-for-like change 9,805 9,439 in sales +1.2% +1.0% 2023 sales Exchange rates Structure like-for-like 2024 sales 2023 2024 Change in sales on North America
Slide 17: Asia-Pacific: sales growth, margin remaining at a record high
ASIA-PACIFIC: SALES GROWTH, MARGIN REMAINING AT A RECORD HIGH Sales (€m) Operating income (€m) and margin (%) +26.1% +0.6% +24.4% 333 267 -2.3% 12.6% 12.6% H1 H2 Like-for-like change 2,642 2,123 in sales +1.2% +0.0% 2023 sales Exchange rates Structure like-for-like 2024 sales 2023 2024 17 FY 2024 RE
Slide 18: High Performance Solutions: sequential improvement in organic growth
HIGH PERFORMANCE SOLUTIONS: SEQUENTIAL IMPROVEMENT IN ORGANIC GROWTH AND SLIGHT GROWTH IN OPERATING MARGIN Sales (€m) Operating income (€m) and margin (%) +0.4% 1,207 1,189 -2.4% -0.9% -1.9% 12.1% 12.0% H1 H2 Like-for-like change 9,840 10,083 in sales -3.5% -0.3% 2023 sales Exchange rates Structure
Slide 19: 2024 Results – Group
2024 RESULTS Group Sreedhar N. Chief Financial Officer Ágora Caixa Forum Building – València, Spain • Complete cladding wall systems integrating Placo plasterboard and Isover insulation
Slide 20: Strategy
STRATEGY Benoit Bazin Chairman and CEO Museum of The Future – Dubai, United Arab Emirates • Gyproc (Glasroc® X), Kimmco–Isover (Ecobuild insulation), Weber (flooring and façade mortars), Ecophon (Fade acoustic plaster)
Slide 21: Making the world a better home
MAKING THE WORLD A BETTER HOME WORLDWIDE LEADER IN We are strategically positioned in attractive growth markets L I G H T & S U S TA I N A B L E CONSTRUCTION We have strong action plans to consistently deliver 21
Slide 22: Megatrends driving need for sustainable construction
MEGATRENDS DRIVING NEED FOR SUSTAINABLE CONSTRUCTION ENERGY-EFFICIENT BUILDING DECARBONIZATION OF NECESSARY ADAPTATION TO SOLUTIONS CONSTRUCTION CLIMATE CHANGE -50% $4.5-5.4 trillion Ongoing implementation of EED & Embodied carbon thanks to light Annual investment needed for cities to EPBD1 in the E
Slide 23: Investing for growth in North America
INVESTING FOR GROWTH IN NORTH AMERICA, A MARKET WITH STRONG STRUCTURAL CONSTRUCTION NEEDS STRUCTURAL NEED FOR NEW BUILD AND CONTINUED INVESTMENT TO STRENGTHEN OUR RENOVATION IN NORTH AMERICA LEADERSHIP POSITION 34% #1 in Building of Group >€300m operating materials in the Growth capex US & Canada ~3
Slide 24: Reinforcing our presence in Asia & emerging markets
IN ASIA & EMERGING MARKETS WE ARE REINFORCING OUR PRESENCE TO LEVERAGE STRONG MEGATRENDS URBANIZATION SHAPING ASIAN & EMERGING CONSISTENTLY GROWING IN INDIA MARKETS 34% #1 of Group in Building +2bn operating income 2.0x Saint-Gobain sales in India over the last 6 years4 materials in India Total urba
Slide 25: In Europe we are well-positioned to resume growth
IN EUROPE WE ARE WELL-POSITIONED TO RESUME GROWTH PROGRESSIVE RECOVERY IN HOUSING LEADING COMPREHENSIVE SOLUTIONS ENHANCING SHARE OF INDICATORS DRIVEN BY LOWER INTEREST RATES WALLET AND COMPETITIVE EDGE Housing permits and starts are progressing Waterproofing membranes Insulated glazing Countries ex
Slide 26: A unique platform in construction chemicals
WE HAVE BUILT A UNIQUE PLATFORM IN CONSTRUCTION CHEMICALS MORE THAN DOUBLED SALES IN CONSTRUCTION STRENGTHENED PRESENCE IN HIGH-GROWTH CHEMICALS OVER THE PAST 6 YEARS EMERGING MARKETS Sales in construction chemicals €bn x2.3 6.51 5.3 3.5 2.8 Hotel Grand Park Royal, Puerto Vallarta – Mexico Establish
Slide 27: Unlocking synergies in construction chemicals
WE ARE UNLOCKING SYNERGIES IN CONSTRUCTION CHEMICALS STRONG DELIVERY ON & LEVERAGING OUR COMBINED OFFER TO DEVELOP OUR PRESENCE IN INFRASTRUCTURE Thierry Bernard Rob Bonnici CEO Construction Chemicals CEO FOSROC Ready-mix concrete, Concrete repair, precast admixtures mortars & protective Backward in
Slide 28: Continuously optimizing our profile for stronger profitable growth
WE ARE CONTINUOUSLY OPTIMIZING OUR PROFILE FOR STRONGER PROFITABLE GROWTH STRUCTURED OPTIMIZATION OF GROUP PROFILE 40% of sales rotated since end of 2018 Grow & Invest €6.8bn Value creative acquisitions and growth capex in Sales from value-creating acquisitions1 North America, Asia-Pacific & emergin
Slide 29: Successfully integrating our recent acquisitions
WE ARE SUCCESSFULLY INTEGRATING OUR RECENT ACQUISITIONS COMPREHENSIVE OFFER IN CANADA WITH LEADERSHIP IN THE AUSTRALIAN MARKET KAYCAN, BPC AND BAILEY ACQUISITIONS WITH CSR ACQUISITION 19% Combined 2024 EBITDA margin1 #1 #1 in Building in Building materials in materials in Canada Australia Roofing Wo
Slide 30: Developing the Group in high-growth profitable regions
WE CONTINUE TO DEVELOP THE GROUP IN HIGH-GROWTH PROFITABLE REGIONS Share of Group operating income % 34% North America >2/3 of operating income from x3 34% Asia & emerging North America, Asia and 18% in € emerging countries countries 24% 32% 58% Western Europe Before transformation Pro forma 20241 1
Slide 31: Making the world a better home
MAKING THE WORLD A BETTER HOME WORLDWIDE LEADER IN We are strategically positioned in attractive growth markets L I G H T & S U S TA I N A B L E CONSTRUCTION We have strong action plans to consistently deliver 31
Slide 32: Powerful and agile country-led organization
OUR POWERFUL AND AGILE COUNTRY-LED ORGANIZATION ENABLES US TO QUICKLY ADAPT AND OUTPERFORM Strong country-led organization Country-owned P&L and incentives Comprehensive solutions approach Local business model: buying, Constant focus on price-cost 90% of CEOs are native to their manufacturing and se
Slide 33: Deepening our solutions approach
WE ARE DEEPENING OUR SOLUTIONS APPROACH A KEY DIFFERENTIATOR IMPROVING OUR PRODUCT MIX & INCREASING OUR SHARE OF WALLET Full range of innovative Christian Bako Thierry Fournier VP Marketing & Development CEO Southern Europe, Middle-East & Africa and sustainable solutions for all building types Early
Slide 34: Value-added services to customers through digitalization
WE ARE PROVIDING VALUE-ADDED SERVICES TO CUSTOMERS THROUGH DIGITALIZATION In Vietnam In Australia In France Digital tool to streamline customer Suite of digital tools to support Unique Smartphone Door-to-door order processing for all CSR brands craftsmen in energy renovation projects QR codes applic
Slide 35: Innovation strengthens our product mix and boosts growth
OUR INNOVATION STRENGTHENS OUR PRODUCT MIX AND BOOSTS OUR GROWTH INNOVATION SHAPED BY CLIENT NEEDS HIGH VALUE-ADDED INNOVATIVE SYSTEMS GLASROC® X Strengthened gypsum boards for external applications & very humid areas Reinforced with Adfors glass grid Processes and solutions for a Light construction
Slide 36: Track record of attractive shareholder returns
TRACK RECORD OF ATTRACTIVE SHAREHOLDER RETURNS Dividend per share (€) Total Cash dividend (€m) return €5.6bn +16% CAGR 21-24 Share buyback €2.10 €2.0bn €2.00 €1.63 €1.5bn returned to shareholders in 2024, €1.33 incl. €420m share buyback Cash 1,013 1,045 dividend Dividend of €2.20 per share (+5%) 835
Slide 37: Outlook
OUTLOOK Benoit Bazin Chairman and CEO Bejo Headquarters – Warmenhuizen, Netherlands • Gyproc partition walls and metal frames, Isover glass wool insulation
Slide 38: 2025 Outlook
2025 OUTLOOK In a macroeconomic environment that remains contrasted, Saint-Gobain will continue to demonstrate a very strong operating performance in 2025. Assuming no major disruption linked to geopolitics, the Group expects the following trends: • Europe: construction markets stabilizing, with a g
Slide 39: We have delivered on all our financial objectives
WE HAVE DELIVERED ON ALL OUR FINANCIAL OBJECTIVES 2021-2025 objectives 2021-2024 average 3-5% Organic sales growth 3.9%1 9-11% Operating margin 10.8% >50% FCF conversion ratio 59% 12-15% ROCE 15.4% 1.5x-2.0x Net debt / EBITDA 1.2x TSR2 over 4 years 156% We will present our new ambitions during our n
Slide 40: Building on strong foundations to continue to outperform
WE WILL BUILD ON OUR STRONG FOUNDATIONS TO CONTINUE TO OUTPERFORM Leadership in Solutions journey with Value accretive Strong shareholder light & sustainable an increased share of capital allocation in returns construction wallet high-growth markets 40 FY 2024 RESULTS
Slide 41: 2024 Results and Outlook
2024 RESULTS AND OUTLOOK February 28th, 2025 Midfield Terminal, Abu Dhabi International Airport – United Arab Emirates • Gyproc lightweight plasterboard partition systems and fire-resistant structures
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: Appendix
APPENDIX
Slide 44: 2024 end markets sales split
2024 END MARKETS 1 SALES SPLIT NEW RESIDENTIAL 6% 5% 7% 3% 1% CONSTRUCTION 22% NEW NON-RESIDENTIAL 5% 3% 4% 1% 2% CONSTRUCTION 15% 13% 21% 10% 5% RENOVATION / INFRAST. 1% 50% INDUSTRIES 13% 13%2 NORTHERN SOUTHERN AMERICAS ASIA-PACIFIC HPS EUROPE EUROPE - 21% 5% 21% 24% ME & AFRICA 29% 1. Saint-Gobai
Slide 45: Continued state support in energy renovation
CONTINUED STATE SUPPORT IN ENERGY RENOVATION AT EUROPEAN LEVEL AT MEMBER STATE LEVEL Higher expected disbursements under MaPrimeRénov’ EED – Energy Efficiency Directive scheme in 2025 Rental ban for the worst-performing dwellings (G-class EPC) from 2025, including for tourist accommodations Requirem