Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — FY2021 Earnings Presentation
68 slides from Compagnie De Saint-gobain Sa's earnings presentation, Feb 25, 2022
Slide 1: 2021 results and outlook
2021 results and outlook FEBRUARY 25, 2022 Benoit Bazin Chief Executive Officer
Slide 2: Making the World a Better Home
Making the Worlda Better Home THE WORLDWIDE LEADER IN LIGHT & SUSTAINABLE CONSTRUCTION GROWg IMPACT 2021-2025 ont WD SAINT-GOBAIN
Slide 3: All our teams are delivering on the success of Grow & Impact
ALL OUR TEAMS ARE DELIVERING ON THE SUCCESS OF GROW & IMPACT GROW & IMPACT IN MOTION ACROSS THE ORGANIZATION 83% employee engagement score 2021 results presentation 3 3
Slide 4: Showcasing sustainable solutions at World Expo 2021
SAINT-GOBAIN IS SHOWCASING SUSTAINABLE SOLUTIONS AT WORLD EXPO 2021 INNOVATIVE BUILDING SOLUTIONS FROM 11 SAINT-GOBAIN PRODUCT LINES - DUBAI Including ceilings, acoustic partitions, solar control & electrochromic glazing, 2021 results presentation 4 4 construction chemicals, high performance membran
Slide 5: Saint-Gobain is leading renovation in Europe
SAINT-GOBAIN IS LEADING RENOVATION IN EUROPE BEST-IN-CLASS OMNICHANNEL CUSTOMER JOURNEY 2021 results presentation 5 5 Weekly regular contact with 2 million tradespeople through 3,500 outlets, 500 showrooms, digital applications and logistics solutions
Slide 6: Building a worldwide platform in construction chemicals
SAINT-GOBAIN IS BUILDING A WORLDWIDE PLATFORM IN CONSTRUCTION CHEMICALS May 20, 2021 CHRYSO & GCP APPLIED TECHNOLOGIES ACQUISITIONS 2021 results presentation 6 6 Creating a major global player in construction chemicals, with >€4bn in sales
Slide 7: Accelerating on all fronts to drive sustainability
SAINT-GOBAIN IS ACCELERATING ON ALL FRONTS TO DRIVE SUSTAINABILITY ~40% OF RENEWABLE ENERGIES IN ELECTRICITY CONSUMPTION (x2 vs. 2020) Blooming Grove wind farm – Illinois, USA Photovoltaic roofs and rain water harvesting – Chennai, 2021 results presentation India 7 7
Slide 8: Driving circularity into our markets
SAINT-GOBAIN IS DRIVING CIRCULARITY INTO OUR MARKETS RENOVATION OF OFFICE BUILDING - STOCKHOLM Recycling of 100% of old glass and 100% replacement by new Cool-Lite glazing 2021 results presentation 8 8
Slide 9: 2021 Highlights
2021 HIGHLIGHTS Benoit Bazin Chief Executive Officer
Slide 10: 2021 key financial figures
2021 Sales growth +13.8% vs. 2019 (like-for-like) €44,160m Operating income +39% vs. 2019 (like-for-like) €4,507m Recurring net income +47% vs. 2019 €2,815m Strong value creation ROCE 15.3% vs. 11.1% in 2019 2021 results presentation 10
Slide 11: Environment and social highlights
ENVIRONMENT SOCIAL MAXIMIZE OUR IMPACT ~40x 26.3% net positive thanks to our solutions1 of women managers3 MINIMIZE OUR FOOTPRINT -23% 83% CO2 emissions vs. 2017 on scope 1+22 in employee engagement score 1. Solutions produced & sold in 1 year, with impact over entire product lifespan vs. scope 1-2-
Slide 12: 2021-2025 targets
2021 2021-2025 TARGETS2 Organic sales growth +3-5% Operating margin 9-11% Free Cash Flow conversion ratio >50% ROCE 12-15% 1. 2021/2019 annual average growth rate 2. Annual average through the period assuming no major economic slowdown 2021 results presentation 12
Slide 13: Acquisitions and divestments in 2021
new plants and production lines and new countries1 of acquisitions2 in 2021, with a large strategic move into construction chemicals €4bn PLATFORM of divestments2 in 2021 and divested since Transform & Grow 1. Ivory Coast, Mauritius, Kenya, Philippines, Sri Lanka 2. Sales acquired or divested 2021 r
Slide 14: 2021 Results
2021 RESULTS GROUP SEGMENTS Sreedhar N. Chief Financial Officer
Slide 15: Sales growth bridge 2021
2021/2020 2021/2019 +18.4% +13.8% like-for-like like-for-like +11.7% +15.8% Organic growth of 13.8% versus 2019 (o/w 6.2% volume growth), i.e. annual average +6.7% growth of ~6.9% over 2 years -0.4% Exchange rates: slight depreciation over the -2.2% year, despite an appreciation in H2 led by the pou
Slide 16: Quarterly organic growth vs. 2019
Quarterly organic growth vs. 2019 +18.2% +9.0% in Q1, o/w volumes +5.8% +14.7% +13.3% +14.7% in Q2, o/w volumes +9.4% with a positive +3% calendar impact +9.0% +13.3% in Q3, o/w volumes +3.6% with a negative -0.5% calendar impact +18.2% in Q4, o/w volumes +6.0% Q1-2021/ Q2-2021/ Q3-2021/ Q4-2021/ Q1
Slide 17: Group price increase
Group price increase Acceleration in prices in all segments +10.3% Amid inflation in raw material and +8.7% energy costs of ~€1.6bn in 2021, with inflation of the same order of magnitude +5.1% expected in 2022 +2.6% +0.2% +0.9% +1.8% +0.6% Q1-20/ Q2-20/ Q3-20/ Q4-20/ Q1-21/ Q2-21/ Q3-21/ Q4-21/ Q1-1
Slide 18: Operating income and margin
+250 bps 10.2% 2018-2021 Impact of the successful operational and financial transformation 7.7% Portfolio optimization 4 507 M€ Outperformance versus the markets €4,507m 2021 3 207 M€ €3,207m Continued outperformance Positive price-cost spread of €60m Additional cost savings of €150m in businesses i
Slide 19: Operating income to EBITDA
2021/ 2021/ 2019 2020 2021 €m 2020 2019 Operating income 3,390 2,855 4,507 +57.9% +32.9% Non-operating costs (421) (342) (239) Capital gains (losses) and impacts resulting from (13) (58) (67) changes in Group structure Asset write-downs and other (403) (1,023) (265) Business income 2,553 1,432 3,936
Slide 20: Recurring net income and EPS
2021/ 2021/ 2019 2020 2021 €m 2020 2019 Business income 2,553 1,432 3,936 +174.9% +54.2% Net financial expense (496) (453) (408) Dividends received from investments 28 34 1 Income tax (631) (526) (919) Net attributable income 1,406 456 2,521 Recurring net income 1,915 1,470 2,815 +91.5% +47.0% Recur
Slide 21: Free cash flow and working capital
2,904 2018-2021 New cash culture Positive impact of change in the Group’s profile 53% Optimization of capital expenditure Reduction in operating working capital requirement (operating WCR): decrease of 12 days’ sales 1,236 2021 31% Capital expenditure at 3.6% of sales compared to a target of 3.5% to
Slide 22: Net debt and net debt/EBITDA
Net debt, €bn Net debt / EBITDA 11.2 IFRS16 9.3* 2.4 7.3 2.0 IFRS16 IFRS16 1.5 8.2 1.2 4.1 4.1 2018 2021 2021pf* 2018 2021 2021pf* Launch of transformation Net debt/EBITDA ratio between 1.5x and 2.0x, in line with commitments * proforma 2021, after GCP acquisition: net debt +€2bn 2021 results presen
Slide 23: ROI and ROCE
(before tax, after IFRS16) 27.6% ROI ROCE +950 bps 15.3% 18.1% +460 bps 10.7% 2018 2021 2018 2021 Launch of Launch of transformation transformation Ahead of target: ROCE between 12% and 15% 2021 results presentation 23
Slide 24: 2021 Results: Segments
2021 RESULTS GROUP SEGMENTS Sreedhar N. Chief Financial Officer
Slide 25: Northern Europe
2021/2020 2021/2019 +15.5% +12.1% like-for-like +8.5% +17.3% like-for-like 1,100 856 +7.0% +2.4% -0.6% 12,807 15,028 5.6% +170 bps 7.3% 2020 sales Exchange Structure Price Volumes 2021 sales 2018 2021 rates Launch of transformation Change in United o/w Nordics Germany sales on a like- Kingdom for-li
Slide 26: Southern Europe, Middle East & Africa
2021/2020 2021/2019 +20.3% +13.9% like-for-like like-for-like +14.2% +12.8% 1,166 +6.1% 603 -0.5% -7.0% 12,454 14,044 4.6% +370 bps 8.3% 2020 sales Exchange Structure Price Volumes 2021 sales 2018 2021 rates Launch of transformation Change in o/w France Spain-Italy sales on a like- for-like basis 20
Slide 27: Americas
2021/2020 2021/2019 +22.3% +28.3% like-for-like like-for-like +9.3% +19.6% 1,123 +13.0% 578 +1.9% 5,697 6,815 11.2% +530 bps 16.5% -4.6% 2020 sales Exchange Structure Price Volumes 2021 sales 2018 2021 rates Launch of transformation Change in o/w North America Latin America sales on a like- for-like
Slide 28: Asia-Pacific
2021/2020 2021/2019 +28.5% +17.0% like-for-like like-for-like +22.3% +17.6% 211 194 +6.2% -2.1% -8.8% 1,520 1,787 10.4% +140 bps 11.8% 2020 sales Exchange Structure Price Volumes 2021 sales 2018 2021 rates Launch of transformation 2021 results presentation 28
Slide 29: High Performance Solutions
2021/2020 2021/2019 +14.5% +3.3% like-for-like like-for-like +13.8% +14.8% 986 931 +0.7% +1.7% -1.4% 6,544 7,511 13.4% -100 bps 12.4% 2020 sales Exchange Structure Price Volumes 2021 sales 2018 2021 rates Launch of transformation Change in o/w Construction Mobility Industry sales on a like- for-like
Slide 30: Strategic Actions
STRATEGIC ACTIONS Benoit Bazin Chief Executive Officer
Slide 31: Strategic priorities: positioning on accelerating markets
Leverage attractive positioning on accelerating markets Drive and expand customer-centric solutions Sustainability at the core of our business model Further strengthen value creation for shareholders 2021 results presentation 31
Slide 32: Saint-Gobain solutions for sustainability and performance
SAINT-GOBAIN SOLUTIONS FOR SUSTAINABILITY AND PERFORMANCE 40% of global CO2 emissions linked to construction x3 increase in resource consumption in the last 50 years +2bn urban population in emerging markets in the next 30 years 2021 results presentation 32
Slide 33: ~50% of Group sales on renovation market
ENERGY-EFFICIENT RENOVATION NON-ENERGY RENOVATION From ambition to concrete commitments Continuously strong tailwinds Member state Long-Term Renovation Strategies submitted commitments by all member states by end-2021 High levels of real-estate transactions 35m buildings to be renovated by 2030 Inte
Slide 34: European renovation commitments and regulation
BELGIUM NETHERLANDS SWEDEN NEW Commitment: decarbonization of 74% of NEW Commitment: renovation dwellings and 100% of non-residential of 1.5m buildings by 2030 Commitment: yearly decline in the share NEW buildings by 2050 of least energy-efficient buildings Regulation: EPC1 of Regulation: minimum st
Slide 35: ~40% of Group sales on light construction
Strong rationale driving light construction Light construction is becoming the new standard Construction decarbonization, 1 resource intensity reduction Light removable Green delivery -50% raw material usage partitions by waterway 2024 Time & productivity gains Village in 2 for fast urbanization the
Slide 36: Saint-Gobain solutions: construction, mobility, industry
SAINT-GOBAIN SOLUTIONS Sustainable CONSTRUCTION +18% Decarbonization technologies for global construction players increase in building labelling +17% growth for Adfors and Chryso4 certifications1 Sustainable MOBILITY +35% Technologies for glazing & electric vehicle solutions CAGR 2021-2025 of elec
Slide 37: Strategic priorities: customer-centric solutions
Leverage attractive positioning on accelerating markets Drive and expand customer-centric solutions Sustainability at the core of our business model Further strengthen value creation for shareholders 2021 results presentation 37
Slide 38: End-to-end solution for energy-efficient renovation
End-to-end solution for energy-efficient renovation F B Typical project: from energy class DPE to DPE -70% energy bill reduction Weekly regular contact with 2m tradespeople in France, Nordics and UK Attic insulation Internal partitions Double glazing Presence all along the value chain & widest offer
Slide 39: ETICS system offer for light construction
Ultimate / Vario XtraSafe water vapour barrier Intragra rain screen Full breadth system offer of building materials for Glasroc X / Rigidur H reinforced gypsum boards light construction weber.therm stone wool thermal insulation boards Adhesive mortars Decorative coatings Reinforcement mesh in base-c
Slide 40: Leadership in specialty materials and low carbon concrete
Up to 10% of energy savings of Saint-Gobain glass 100% plants equipped Advanced positions on fast-growing Service to recycle markets refractory materials SEFPRO REFRACTORIES Leadership in specialty materials SAINT-GOBAIN OUTPERFORMANCE: (ceramics, polymers & composites) n°1 market leader on refracto
Slide 41: Grow & Impact in motion across the organization
Complete offering for DIY My Home by Saint-Gobain Personalized customer journey using data LOYALTY ACQUISITION RETENTION AVERAGE BASKET ACTIVATION Thermal protection solutions Glasroc X exterior board system Complete acoustic systems for EV batteries Grow & Impact in motion across the organization 2
Slide 42: Strategic priorities: sustainability at the core
Leverage attractive positioning on accelerating markets Drive and expand customer-centric solutions Sustainability at the core of our business model Further strengthen value creation for shareholders 2021 results presentation 42
Slide 43: Decarbonized wall: early stage innovation
DECARBONIZED WALL – Early stage innovation for residential1 New building system Excavated earth providing a circular- endlessly economy solution Worksite waste reuse and optimizing recyclable worksite productivity Excavated earth construction Local Render Resources Sales outlets every 9km available
Slide 44: Towards low carbon glass
2021 Towards low carbon glass: up to 30% reduction of CO2 emissions -7% Cullet -2% Process optimization Cullet treatment to Melting processes, sensors increase its use as and automation ~€100m raw material -13% New furnace design -5% Waste heat recovery CAPEX and R&D Improved furnace lay-out Recover
Slide 45: Glass wool life cycle, endlessly recyclable
We act at every stage of the glass wool life cycle Manufacturing Distribution • 75% of production waste recycled Reduced impact of transport • >50% plants with electric furnace with waste compression by up • Up to 90% of recycled glass to 1:10 New furnace technology ENDLESSLY Reprocessing RECYCLABLE
Slide 46: Maximize our impact, minimize our footprint
MAXIMIZE OUR IMPACT MINIMIZE OUR FOOTPRINT -23% of total CO2 emissions1 vs. 2017 sustainable sales Further reduction in CO2 emissions in 2021 vs. • CO2 reduction • Circularity • Well-being 2020 despite +11.7% volumes increase Our objective: -33% in 2030 validated by SBTi New build multi-family home
Slide 47: 85% of employees recommend Saint-Gobain
2021 MILESTONES of women of women among managers1 management hires Our objective in 2025 Top Employer Bloomberg Gender Global Equality Index for the 7th consecutive year for the 4th time 85% OF OUR EMPLOYEES RECOMMEND SAINT-GOBAIN2 1. Among ~30k managers 2. Annual survey with >120k respondents, 81%
Slide 48: Strategic priorities: value creation for shareholders
Leverage attractive positioning on accelerating markets Drive and expand customer-centric solutions Sustainability at the core of our business model Further strengthen value creation for shareholders 2021 results presentation 48
Slide 49: New plants and growth capex
+3 EUROPE +6 AMERICAS New greenfield & +21 brownfield plants European North renovation America ~10% Plant in Czech Republic Glass plant in Mexico ~40% GROWTH CAPEX +7 ASIA +5 MIDDLE-EAST & AFRICA ~50% Emerging countries Growth Capex +40% in 2021 vs. 2020 Construction chemicals Plaster plant in China
Slide 50: Disciplined and value creative capital allocation
TARGETED DIVESTMENTS OF VALUE-CREATIVE ACQUISITIONS UNDERPERFORMING ASSETS Sales acquired since T&G1 EBITDA / sales Sales divested since T&G1 EBITDA / sales >20% <5% of which in 2021 of which in 2021 (China) (Germany, Denmark) Continued disciplined & value creative capital allocation 1. Deals closed
Slide 51: Value creation ahead of schedule on acquisitions
VALUE CREATION AHEAD OF SCHEDULE STRONG RESULTS AHEAD OF PLAN • Integration sales in 2021 Like-for-like + 25% vs. 2020, + 26% vs. 2019 • EBITDA • EBITDA • Value creation set at time of acquisition • Synergy guidance (run-rate • SALES GROWTH ACCELERATION • UPSIDE ON COMMERCIAL Leverage Saint-Gobain w
Slide 52: Dividends and share buybacks
2021: €1.2bn 2022: >€1.2bn 2020 DIVIDEND 2021 DIVIDEND (Board’s recommendation to the June 2, 2022 AGM) • Close to €700m paid out to shareholders • €1.63 per share (up 23% on 2020), i.e., ~€850m • Payment in cash • Payment in cash SHARE BUYBACKS SHARE BUYBACKS • €518m in share buybacks1, • At least
Slide 53: Management team and strengthened Board of Directors
A MANAGEMENT TEAM COMMITTED A STRENGTHENED TO DELIVER RESULTS BOARD OF DIRECTORS Patrick DUPIN Northern Europe Lina Ghotmeh French-Lebanese architect women international Thierry FOURNIER members Claire PEDINI Southern Europe, Middle East Human Resources & & Africa Corporate Social Responsibility Ben
Slide 54: Outlook
OUTLOOK Benoit Bazin Chief Executive Officer
Slide 55: 2022 outlook by region
Europe: supportive renovation market, requiring comprehensive solutions that increase efficiency and save time for customers, albeit with a high comparison basis in the first half Americas: upbeat market trends, particularly in residential construction in North America and in Latin America overall,
Slide 56: Forward-looking statements
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", "anticipate", "believe", "intend", "estimate", "plan" and si
Slide 57: Definitions of indicators
Indicators of organic growth and like-for-like changes in sales/operating income reflect the Group’s underlying performance excluding the impact of: changes in Group structure, by calculating indicators for the year under review based on the scope of consolidation of the previous year (Group str
Slide 58: 2021 results and outlook: appendix
2021 results and outlook FEBRUARY 25, 2022
Slide 59: Asia-Pacific
2021/2020 2021/2019 +17.9% +14.2% like-for-like like-for-like +11.1% +12.5% 1,209 +1.7% +6.8% 685 -7.1% 16,347 18,390 3.6% +300 bps 6.6% 2020 sales Exchange Structure Price Volumes 2021 sales 2018 2021 rates Launch of transformation ROCE in line with the Group average Best in class operating margin
Slide 60: Operating income and industrial assets breakdown
Breakdown of Industrial assets 2021 Operating income at December 31, 2021 Asia-Pacific Asia-Pacific 5% HPS HPS 7% 20% 23% Americas Americas 16% 25% €4,507m €16.6bn 24% Southern 29% 25% Northern Northern Europe - ME 26% Europe Southern Europe & Africa Europe - ME & Africa 2021 results presentation 60
Slide 61: 2021 sales and operating income breakdown
2021 Sales 2021 Operating income North America France France North 15% America 19% Latin 26% 24% America 6% Asia- Pacific 8% €44.2bn €4,507m Latin 10% Eastern 7% America 27% Other Western Europe, European Africa & ME 10% countries 38% 10% Asia-Pacific Other Western Eastern Europe, European Africa &
Slide 62: Sales by end market and region
NEW RESIDENTIAL 1% 7% 7% 5% 2% CONSTRUCTION 22% NEW NON-RESIDENTIAL 1% 5% 3% 2% 1% CONSTRUCTION 12% 2% 21% 21% 8% RENOVATION / INFRAST. 1% 53%** MOBILITY 6% 6% OTHER INDUSTRIES 7% 7% HPS NORTHERN SOUTHERN AMERICAS ASIA-PACIFIC 17% EUROPE EUROPE - 15% 4% * Saint-Gobain estimated end markets 33% ME &
Slide 63: ESG targets and progress
Climate Change Circular economy Health & Safety Engagement & diversity Inclusive Growth Business Ethics TARGETS 2030 2030 2030 Yearly 2025 Yearly -33% -80% non recovered 1.5 TRAR Employee engagement rate 100% countries help 100% managers trained scope 1+2 vs. 2017 waste vs. 2017 over benchmark >80%
Slide 64: Building envelope and interior solutions
Building Envelope Interior solutions 3 4 5 PLANITHERM STADIP & 6 1 PLANITHERM ONE 2 5 HABITO® 6 SCREED 7 1 7 NOVELIO 2 ETICS WEBERTHERM Distribution services Distribution 3 INTEGRA VARIO, 4 FLEX 55 ALTECH COMBLISSIMO ALTERNA IBR400 TILING 2021 results presentation 64
Slide 65: Building envelope and interior solutions
Building Envelope Interior solutions LIGHT FAÇADES F4 C STIL HABITO® 1 TF36 / ISOCOMPACT 6 DUOTECH COB OPTIMA GR32/30 Services ETICS WEBERTHERM SERVICES: RECYCLING 2 PARTITION LR/LV/wood/cork PLACO, WEBERCOLLECT, ISOVER, GLASS 7 Distribution TEMPERLY 8 ALTECH ALTERNA 3 CLADDING LITEPOINT 4 GRAFFITIG
Slide 66: Building envelope and interior solutions
Building Envelope Interior solutions 8 3 5 7 Glass ECLAZ 1 CLIMAPLUS SUN 1 2 4 7 OPTIMAX HABITO(R) + GR30 9 6 Other (distributed ventilation & electrical materials + piping) 2 SWISSPACER ULTIMATE. PLACO(R) PHONIQUE + PARPHONIC 8 FLEX 55 4 HVAC 5 Electrical kit 6 Well 9 FLOORING SOLUTIONS FACADE Serv
Slide 67: Building envelope and interior solutions
Building Envelope Interior solutions 7 11 2 1 1 VETROFLAM & VETROGARD DUOTECH, XRAY 6 9 ACOUSTIC SUPERCONTRYX 9 8 GLASROC 4 5 CEILING 3 H OCEAN, FV500 10 8 12 4 Other 10 MOTORIZED OPTIMA GR32/30 5 6 7 NOVELIO 11 2 PIVOTING DOOR FACADE F4 ISOFACADE 32/30 11 MOBILITA PROTECTIVE GLAZING CLIMAVER 12 WEB
Slide 68: Building envelope and interior solutions
Building Envelope Interior solutions HEATED ACOUSTIC 10 REVERSIBLE 11 CEILING CEILING PANELS STADIP COOL-LITE 1 PROTECT ST 2 XTREME 60-28 BRIGHT SILVER II - DIAMANT RIGITONE PIVOT DOOR 12 13 ACTIV’AIR ESV7163 Ventilation 3 SAGEGLASS 4 CONTRAFLAM 14 PRIVALITE 15 WEBER FLOOR CLIMAVER CLIMCOVER U PIPE