Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Investor Day (September 2023)
69 slides from Compagnie De Saint-gobain Sa's investor day presentation, Sep 22, 2023
Slide 1: Investor Meeting, September 22, 2023
INVESTOR MEETING SEPTEMBER 22, 2023 1 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 2: Strategy
STRATEGY Benoit BAZIN Chief Executive Officer 2 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 3: Delivering consistently strong performance
01 A successful strategic transformation 02 Our growth journey in North America DELIVERING CONSISTENTLY STRONG PERFORMANCE 3 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 4: A lean organization with local empowerment
A lean organization 90% of CEOs native to their country with local empowerment In-depth understanding of local markets Rapid-decision making Value-creation driven decisions aligned with local performance Solutions-based approach with the development of a full range offer in each country Consistent d
Slide 5: A balanced geographical exposure and continued dynamic investment
Since Last 12 transformation A balanced geographical exposure months2 Continued dynamic investment Share of Group operating income of growth capex allocated in North 30% North America 2/3 America, Asia & emerging countries Asia & emerging 18% 32% x2 countries New lines and plants in North 24% in € +
Slide 6: Continued dynamic optimization of Group profile
Since Last 12 Continued dynamic optimization transformation 1/3 of sales rotated1 months2 of Group profile €2.0bn (JV in Turkey) ~20% EBITDA / Sales CRYSTALS STEEL CERAMICS €3.4bn DISTRIBUTION IN <5% POLAND AND DENMARK (France, Portugal, Switzerland) EBITDA / Sales 1. Transactions completed or signe
Slide 7: A €5.3bn sales platform with global coverage
A €5.3bn1 sales platform Strong synergies between & with global coverage Operations: freight cost reduction purchasing: backward integration and industrial optimization of polymerization with EMEA NORTH AMERICA ASIA-PACIFIC New production line on a Bolt-on acquisitions leveraging Saint-Gobain site i
Slide 8: Strong performance 2018 to 2022
DYNAMIC EXCELLENT MARGIN RECURRING NET FREE CASH FLOW VALUE CREATION SALES GROWTH OPERATING INCOME INCOME DOUBLED GENERATION TRIPLED (ROCE) UP 50% +270 +540 +23% x2 x3 bp bp €51.2bn €41.8bn €5.3bn 16.1% €3.8bn €3.3bn €3.2bn 10.7% €1.7bn €1.2bn 7.7% 10.4% 7.7% 10.4% 2018 2022 2018 2022 2018 2022 2018
Slide 9: Delivering consistently strong performance
01 A successful strategic transformation 02 Our growth journey in North America DELIVERING CONSISTENTLY STRONG PERFORMANCE 9 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 10: Structural housing needs and light construction
Structural housing needs Housing units needed in North America by 2030 to meet demand ~20m Of which ~14m in the US1 and ~6m in Canada2 Led by demography and new building usage Light construction for new builds Share of light construction in North America ~90% Supported by need to save time, money an
Slide 11: We are delivering on synergies and value-creation
Building a leading position in Completing our Canadian offer with Becoming a worldwide leader in gypsum in the United-States exterior solutions construction chemicals We are delivering on synergies and value-creation 11 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 12: Annual growth capex in North America
Annual growth capex in North America >x4 +317% GYPSUM - NET-ZERO PRODUCTION1 ~$300m GYPSUM (PALATKA, FL) (MONTREAL, CANADA) $72m 2018 2023E ROOFING (PEACHTREE CITY, GA) GLASS MAT (OXFORD, NC) 1. Scope 1 & 2 12 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 13: North America now: sales, operating income, investment
• Now in sales • our size in Canada • US: Operating Income contributor for Group • Invested in growth 13 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 14: Our Grow & Impact strategy
OUR GROW & IMPACT STRATEGY Mark RAYFIELD CEO North America 14 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 15: Our growth journey in North America
01 A successful strategic transformation 02 Our growth journey in North America 15 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 16: North America region organization
STRAT. BUSINESS NORTH AMERICA REGION ROOFING* SIDING* LEGAL FINANCE HR & COMMS DEVELOPMENT Mark Rayfield Carmen Bodden Joe Bondi Kendall Combs LaToya Hackney Eric Placidet Magda Dexter INTERIOR COMMERCIAL BUILDING SHARED RESEARCH & CANADA PURCHASING SOLUTIONS ENVELOPE SERVICES DEVELOPMENT Jay Bachma
Slide 17: North America at a glance
North America More than Over 2022 sales* Malvern, PA 9,500 80 118 Years $7.3 Headquarters Employees Manufacturing With businesses Billion Facilities In operations * In North America Region, pro forma with annualized sales of acquisitions (Kaycan and GCP) NORTH AMERICA TOWN HALL 2023 17 17 NORTH AMER
Slide 18: US$7.3bn sales, #1 building materials manufacturer in North America
US$7.3bn Sales1 +16% Only North American Sales CAGR 18-221 manufacturer offering a full breadth of building materials for 18% PLASTERBOARD ACOUSTIC CEILINGS INSULATION light construction Operating margin1 Preferred brand for contractors and homeowners, partnered with leading distribution channels Po
Slide 19: Recent acquisitions: Continental, Kaycan, GCP, BP of Canada
GYPSUM SIDING BUILDING ENVELOPE ROOFING Continental Kaycan GCP BP of Canada Synergies ahead of target in Closed Sept 1 Synergies ahead of target in year 1 Value creation in year 2 – one year 1 year ahead of target Completes exterior offering in Completes building envelope Canada Completes siding off
Slide 20: $6 billion invested in North America since 2018
$6 billion invested in North America region since 2018 Saint-Gobain acquires Saint-Gobain announces Saint-Gobain announces Saint-Gobain Saint-Gobain Continental Building $118 million expansion $100m expansion of completes acquisition completes acquisition Products of CertainTeed roofing roofing plan
Slide 21: Nearly doubled sales, tripled operating income
Nearly doubled sales Tripled Operating Income Dynamic Excellent Sales growth Operating margin $7.3bn $1.3bn $4.0bn $0.4bn 15.5% 1 2018 2022 Pro forma 1 2018 2022 Pro forma 1. 2022 pro forma with annualized sales of acquisitions (Kaycan and GCP) 21 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 22: A bright future in North America
01 A successful strategic transformation 02 A bright future in North America 22 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 23: Adoption of light construction
20m housing units needed to meet 2030 North American demand Adoption of light construction Construction Megatrends of all construction products spend Population Growth ~90% in North America is on light construction ~14m ~6m New ways of working Housing units Housing units needed needed Demand for lig
Slide 24: 24 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
24 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 25: Exterior and interior solutions
Underlayments Roofing shingles Wood fiber insulation EXTERIOR SOLUTIONS Roofing membranes Siding (vinyl, metal, Waterproofing engineered wood) membranes Shakes Accessories Fireproofing Ceilings Plasterboard Glass wool insulation 25 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023 INTERIOR SOLUTIONS
Slide 26: Complete roofing system and exterior solutions
RESIDENTIAL SOLUTIONS (ROOFING & SIDING) COMMERCIAL SOLUTIONS A complete roofing system to simplify installation and maximize performance Combine products to create building envelopes that facilitate Siding and other exterior solutions work together to optimal performance and long-term occupant comf
Slide 27: Increasing share of wallet with cross-selling
Since 2018, CertainTeed USA has leveraged GCP, Kaycan, and BP of Canada will combine to create one sales team for residential exterior solutions in US one sales team for residential exterior solutions in Canada EXTERIOR SOLUTIONS Achieving Customer Centricity through improved sales coverage, custome
Slide 28: Reducing CO2 emissions
Reducing C02 Emissions Site Decarbonization Product Sustainability Through PPA 2019 Blooming Grove Wind 250MW Montreal Electrification 2022 Cottonwood Bayou Solar 200MW First North American zero- Extending the life of shingles to pave our roads carbon scope 1 & 2 gypsum 2023 Danish Fields Solar 100M
Slide 29: Aiming higher: strategic priorities
AIMING HIGHER STRATEGIC PRIORITIES A COMPLETE PORTFOLIO AND OFFERING Continue to deliver on recent acquisitions and value-creation Execute strategic growth capex CUSTOMER-CENTRIC INNOVATION Increase sustainability of our solutions and reach our net zero carbon target Trust, Empowerment, and Collabor
Slide 30: Interior Solutions
INTERIOR SOLUTIONS Jay BACHMANN VP AND GM, INTERIOR SOLUTIONS 30 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 31: Value creation
Value Creation Value Creation Enhanced Footprint New Product Development $50 million in cost synergies and Increased Saint-Gobain’s presence in Enhanced Saint-Gobain’s ability to performance improvements growth regions in the United States, harness its global R&D and product delivered ahead of sched
Slide 32: Gypsum, ceilings and insulation markets
>$8bn Gypsum Market >$3bn Ceilings Market >$11bn Insulation Market Need for new housing and demographic Commercial growth with specialty ceilings Stricter building codes increasing insulation shifts to the United States sunbelt playing a larger role demand 32 NORTH NORTH AMERICA INVESTORMEETING AMER
Slide 33: Solutions for every part of the home and commercial building
SOLUTIONS FOR EVERY PART OF THE HOME SOLUTIONS FOR EVERY COMMERCIAL BUILDING 33 NORTH NORTH AMERICA INVESTORMEETING AMERICA INVESTOR MEETINGSEPTEMBER SEPTEMBER 2023 2023
Slide 34: Product portfolio crosses the same channels
Commercial Offsite Construction Contractors Architects Distribution Retail Our product portfolio crosses the same channels and gives Saint-Gobain an advantage in service and solutions 34 NORTH NORTH AMERICA INVESTORMEETING AMERICA INVESTOR MEETINGSEPTEMBER SEPTEMBER 2023 2023
Slide 35: Innovate on ease and speed of installation
No-Coat Pro Machine = Faster GlasRoc Sheathing is a lightweight, paperless MaxPro fiberglass system combines fiberglass drywall finishing gypsum board with a water-resistant core and technology with a powerful blowing machine fully embedded glass mat for exterior and patented hose that increases spe
Slide 36: Acoustic comfort, fire performance, water resistance
Acoustic comfort Fire performance Water resistance System performance System performance System performance Partition Sound Transmission Mechanical strength time for Mechanical strength water (STC) system failure absorption & weather durability We help architects and contractors address their issues
Slide 37: Capacity expansions and circular economy pilots
28 billion square feet Gypsum Pilots Circular Economy Program in Buchanan, New York Palatka, Florida expansion of 1bn square feet Capacity expansion in Strongsville, Ohio for wood ceilings Increase production capacity in Chowchilla, California 37 NORTH NORTH AMERICA INVESTORMEETING AMERICA INVESTOR
Slide 38: Better serve customer needs with one voice
Create sustainable Create a Expand capacity Create systems solutions that solve continuous where our that improve the the design needs of improvement customers need it Better serve the architects and culture to better ease and speed of customer needs contractors serve the installation for with one v
Slide 39: Exterior Solutions
EXTERIOR SOLUTIONS Carmen BODDEN VP AND GM, CertainTeed Roofing 39 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 40: US housing and roofing system
• The housing in the United States is primarily detached and for single family • Most roofs have a ‘steep slope’ or pitch • Weatherproofing layers and shingles are attached to timber framing, creating a lightweight, durable roofing system • System solutions comprise more than 80% of sales 40 NORTH N
Slide 41: Siding materials and innovation
Aluminum PVC Wood Stone CertainTeed leads the vinyl and polymer siding industry in innovation, quality, performance, design, and service 41 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 42: Homeowner reasons for choosing exterior solutions
Homeowner Reasons for Choosing Exterior Solutions Aesthetics and Value • Color & Design • CertainTeed manufactures • Cost both roofing and cladding materials Performance • Quality & Warranty • Easy, coordinated design and • Water and Wind resistance color decisions for • Fire, algae or impact v home
Slide 43: Purpose of raw materials in shingles
Purpose of Raw Material GRANULES Granules • Protection from ultraviolet rays • Adds color for aesthetics • Can reflect sun to reduce energy costs ASPHALT Asphalt: long-lasting waterproofing Limestone GLASS MAT • Mechanical stabilizer • Fire resistant Glass mat • Mechanical strength ASPHALT • Water r
Slide 44: Shingles lowest installed cost and carbon footprint
Shingles have the lowest installed cost of Shingles offer one of the lowest carbon footprints all roofing products among common roofing products Installed cost of a typical roof* (US$ in thousands) Carbon emission factor of roofing products from extraction to manufacturing (in kg CO2e per m2 product
Slide 45: New plants in fast growing Southern US
1 Population Growth >3% +1.5% to +2.9% 0% to +1.4% <0% Expansions in process Delivery of new plants in fast growing Southern US Source: US Census Bureau 2019-2022 Population Change by State 45 NORTH NORTH AMERICA INVESTOR AMERICA TOWN HALLMEETING 2023 SEPTEMBER 2023
Slide 46: Roof age and weather drive roofing demand
Roof Age and Weather are >80% of roofing demand US Residential Single Family Completions Reason for Roof Replacement (Avg. 2012-2021) 2 500 000 9% 2 000 000 >12m homes 1 500 000 27% 1 000 000 500 000 64% - 2000 2001 2002 2003 2004 2005 2006 2007 2008 Age Weather Other / Insurance • Average roof life
Slide 47: New plants and enhanced service capabilities
Delivery of new plants and enhanced service capabilities Ennis, TX Bryan, TX Glass Mat Plant – Shingle Raw Expanding Shingle Plant Serving Growing Markets Material • Investment in Peachtree City, • 15% of US shingle demand is in • New industry standard for glass Georgia Texas mat plants – focus on l
Slide 48: Innovation for zero-carbon transition and new markets
Processes and solutions for Solutions to minimize the use Light construction systems Materials and solutions a zero-carbon transition of natural resources to grow new markets x x Solar Roofing and Roofs to Roads Polymer Modified Asphalt Shingles for Engineered Performance Solar Reflective Shingles S
Slide 49: Roofing and solar convergence
The US residential solar market is The Inflation Reduction Act (IRA) Convergence of roofing and solar massive and growing is turbocharging the growth creates immense pull 14m new install over next 10 years 30% solar tax credit through 2032 Certified contractors 33% CAGR over the past 10 years Key pa
Slide 50: Shingle recycling into roads
Shingle remanufacture and reuse into roads Paving • Asphaltica technology is a novel way to recycle asphalt shingles into paving • Support industry wide commitment to reduce shingle Pellets landfill waste by 50% • Minimize use of virgin raw materials End of Life Ground Shingles Shingles Leading the
Slide 51: Roofing ready to grow
Shingles Shinglesare thethe are preferred roofing preferred CertainTeed exterior solutions are solution in North roofing America solution with America in North strong designed to work together demand fundamentals with strong demand fundamentals Roofing is ready to grow with new Strong innovation foc
Slide 52: Making the world a better home
THE WORLDWIDE MAKING THE WORLD A LEADER IN LIGHT & BETTER HOME SUSTAINABLE CONSTRUCTION 2021-2025 NORTH 52 NORTH AMERICA AMERICA INVESTORMEETING INVESTOR MEETINGSEPTEMBER SEPTEMBER 2023
Slide 53: Plant tour introduction
PLANT TOUR INTRODUCTION 53 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 54: Plant tour groups
Plant Tour Product Displays Please check the back of your badge to determine your group: Group Group A B 54 NORTH NORTH AMERICA INVESTOR AMERICA TOWN HALLMEETING 2023 SEPTEMBER 2023
Slide 55: INVESTOR SEPTEMBER 2023 55 NORTH
55 NORTH NORTH AMERICA INVESTOR AMERICA TOWN HALLMEETING 2023 SEPTEMBER 2023
Slide 56: Your safety is our first priority
Your safety is our first priority! Remain in the Aisles Stay with your Tour guide Watch for Vehicles Keep hands clear of machines Wear Protective Equipment Stay Alert 56 NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 57: Saint-Gobain Research North America
SAINT-GOBAIN RESEARCH NORTH AMERICA Todd DiNoia VP Innovation & R&D, SGNA NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023
Slide 58: Safety instructions for laboratory visit
• If an alarm sounds, please wait and listen for instructions for Building location • If Building is evacuated, please follow your host to the outside meeting point • Eye protection is required in all laboratories • You will not have safety shoes, so please do not approach equipment or attempt to pi
Slide 59: Global R&D centers
8 Global R&D Centers Development of solutions to meet the Partnerships with start-ups, Marketplaces, product as a specific needs of our local and global scientific and academic service, licensed customers cooperation, internal venturing technologies, etc. Over SGR Over 350 8 100 Years of innovation
Slide 60: Saint-Gobain Research North America, Northborough
Researchers at SGR North America are preparing our future by designing tomorrow's products and processes across a wide variety of markets and technologies. North America Approximately More than More than Northborough, MA 350 100 30 36% 500 Innovation Center Researchers with Researchers Nationalities
Slide 61: Research focus areas
Light construction Process and solutions for systems for a zero-carbon performance and transition well being CUSTOMER Materials and Solutions to minimize solutions to grow the use of natural new markets resources 61 NORTH NORTH AMERICA INVESTORMEETING AMERICA INVESTOR MEETINGSEPTEMBER SEPTEMBER 2023
Slide 62: Fundamental material science and processing competencies
Fundamental material science & processing competencies across broad range of solutions Mechanics, Materials Science, Physics, Chemistry, Optics, Mathematics, Engineering 62 NORTH NORTH AMERICA INVESTORMEETING AMERICA INVESTOR MEETINGSEPTEMBER SEPTEMBER 2023 2023
Slide 63: Building science, polymer and material science capabilities
Building Assembly, Design, and Fabrication Building Polymer & Science Material (Fire, Thermal Science Moisture, Acoustics) Rapid- Prototyping to Pilot-Scale Digital Tools, Advanced Data Science, Processing for Life-Time Sustainability Analysis Green Chemistry & Circular Solutions 63 NORTH NORTH AMER
Slide 64: Nova External Venturing
Nova External Venturing Driving borderless innovation for sustainable growth by connecting startups with the resources and experience of Saint-Gobain. Saint-Gobain University Network International network of collaborations with the academic world Government Agencies Connections with government fundi
Slide 65: University network and start-up collaborations
ACADEMIC NETWORK OF COLLABORATION START-UP COLLABORATIONS Saint-Gobain University Network Maintain strong Digital Connectivity external focus to identify top Industrial Electrification of startups locally in Energy Transition Sustainability Transportation areas of active And investment Digitization
Slide 66: Government agencies, supplier innovation, sustainable construction
Leveraging Government Agencies Supplier Innovation Connections with government funding agencies and national Strategic partnerships with top material suppliers to leverage supplier technical laboratories in U.S. and Canada expertise, capabilities, and resources as extension of R&D Sustainable constr
Slide 67: Innovation: a key engine for growth and impact
Innovation: A key engine for growth and impact Great people and excellent capabilities Create more value for our customers Reinforce solutions offer Leverage fully our local and global expertise Invest in long-term horizon NORTH AMERICA INVESTOR MEETING SEPTEMBER 2023 67 NORTH AMERICA INVESTOR MEETI
Slide 68: Q&A and group sessions
GROUP A GROUP B Benoit Bazin and Todd DiNoia Mark Rayfield and Sreedhar, N. 1 - Innovation in Materials and Processing 4- Interior Products, Exterior Building Technology for Circular Economy (B3) Envelope, Building Sciences (B5) 2 - Innovative Light Construction Assembly 1 - Innovation in Materials
Slide 69: 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