Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Merger or Acquisition (November 2019)
15 slides from Compagnie De Saint-gobain Sa's merger presentation, Nov 13, 2019
Slide 1: Saint-Gobain to Acquire Continental Building Products
SAINT-GOBAIN TO ACQUIRE CONTINENTAL BUILDING PRODUCTS 13 November 2019
Slide 2: Customer-oriented organization and active portfolio management
1 2 A customer-oriented, lean Active and value creating and agile organization portfolio management 2/
Slide 3: Purpose of this acquisition: North American gypsum and building materials
Technologies DIVESTMENTS ACQUISITIONS Emerging Local countries Excellence Purpose of this acquisition: move to the forefront of the North American gypsum and building materials sectors 3/
Slide 4: Saint-Gobain's global footprint in gypsum
SAINT-GOBAIN’S GLOBAL FOOTPRINT IN GYPSUM 5% CAGR in sales 2013-2018 Southern Europe Asia-Pacific Northern Europe Americas - ME & Africa A well-established player in many countries but until now, under-represented in the United States 4/
Slide 5: Saint-Gobain's innovations in gypsum provide a strong platform for growth
Multi-Comfort for End-Customers Sustainability for All LOW CARBON CIRCULAR ECONOMY ACOUSTIC INSULATION HUMIDITY RESISTANCE CONSTRUCTION Recycling Lightweight systems Gypwall Quiet System Glasroc Productivity for Professionals HIGH DENSITY / AIR QUALITY OFFSITE MANUFACTURING ON-SITE SERVICES IMPACT R
Slide 6: Comprehensive construction solutions for North American customers
~$4bn 2018 sales Gypsum Insulation Ceilings Roofing Siding 62 ~7,000 Plants Employees Textile solutions Dynamic & specialty glass We provide comprehensive construction solutions to our North American customers with a unique portfolio for residential and commercial buildings 6/
Slide 7: U.S. gypsum is a large scale and growing sector
U.S. Residential Sector to Benefit from Robust Population U.S. Non-residential Sector to Benefit from Flexible Growth and Continued Recovery In Housing Starts Economics and Robust Population Growth 2 500 350 300 2 000 250 Long-Term Average 1 500 200 ~20% 1 000 Upside 150 100 500 50 0 0 1959 1961 196
Slide 8: A best-in-class gypsum player in the United States
$510m 25% $130m 95% of Sales 6 Plants Revenue EBITDA Margin EBITDA in the U.S. and 5 owned facilities (2019 consensus) (2019 consensus) (2019 consensus) 5% in Canada and 1 JV facility A well-established player in Eastern and Southeastern US Plants strategically located close to large customer ar
Slide 9: Complementary operating model and similar culture of excellence
Complementary Operating Model and Similar Culture of Excellence Best-in-class logistics and customer care, for better customer service and optimized costs Access to growing Northeast commercial areas and Florida / Georgia residential areas Strong cultural fit Leverage Saint-Gobain’s R&D capa
Slide 10: Revenue growth, EBITDA margins, ROCE and cash generation
Strong Revenue growth… … coupled with increasing EBITDA margins… (Reported revenues, in $m) (Adjusted EBITDA, in $m) 5.6% 528 402 CAGR 8.1% 151 CAGR 103 25.5% 28.6% . EBITDA Margin EBITDA Margin 2013 2018 2013 2018 … led to a significant improvement in Return on … as well as solid Cash Generation Ca
Slide 11: Pro forma sales and EBITDA
Pro forma Sales Pro forma EBITDA (In $bn) (In $m) 0.5 4.5 4.0 50 130 SALES +13% 14% EBITDA 16% EBITDA +32% EBITDA margin margin SGO Cupertino Pro Forma SGO Cupertino Run-rate synergies Pro Forma Run-rate + synergies + Saint-Gobain pro forma EBITDA margin excluding asbestos liability cost 11 /
Slide 12: $50m cost synergies secured by year 3
(In $m) • Freight optimization and improved supply chain LOGISTICS • Logistics network rationalization • Economies of scale in purchasing OPERATIONS • Optimized combined production to achieve longer runs and economies of scale • Optimization of support functions including SG&A elimination of public
Slide 13: Financial terms and financing
• $37.00 per share in cash representing a premium of 34.4% over the 60-day VWAP1 • Enterprise value of $1.4bn representing a 11.0x 2019E2 EBITDA multiple and 7.9x 2019E2 EBITDA post Financial run-rate synergies Terms • Strong expected value creation driven by $50m run-rate synergies with ROCE above
Slide 14: A value-creating acquisition
Combined group better able to serve customers and better compete Attractive growth potential in light weight construction A value-creating acquisition 14 /
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