Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Merger or Acquisition (May 2022)
17 slides from Compagnie De Saint-gobain Sa's merger presentation, May 31, 2022
Slide 1: Saint-Gobain to Acquire Kaycan Ltd
SAINT-GOBAIN TO ACQUIRE KAYCAN lTD MAY 31, 2022
Slide 2: Kaycan is a compelling strategic acquisition
1 1 KAYCAN IS A COMPELLING STRATEGIC ACQUISITION GRO W & IM PJ'CT
Slide 3: Kaycan acquisition will accelerate execution of Grow & Impact strategy
1 / KAYCAN A CQUISITION WILL ACCELERATE EXECUTION OF GRO W & SAINT-GOBAIN STRATEGY IMPJ'CT Combined, Saint-Gobain and Kaycan will have an expanded footprint in light construction in the high growth North American market WO RL DWI D E L EAD ER IN LI GHT & SU S TA I NAB LE KAYCAN C ON S T R U C T IO N
Slide 4: North America: a key growth market for Saint-Gobain
1 1 GROW & NORTH A MERICA: A KEY GROWTH MARKET FOR SAINT-GOBAIN IMPJ'CT ( Strongmarketperspectives ) (_~_ La_b_o_r_s_a_ vi_n~g_s_o_lu_t_io_n_s~_) (-~~L_ig~h_t_c_o_n_st_r_uc_t_io_n~~-) 3.8m 1 units housing supply deficit in 62o/o of commercial contractors 2 -45°/o3 of ali construction products the US
Slide 5: Kaycan acquisition will reinforce strong track record of growth in North America
1 1 KAYCAN ACQUISITION WILL FURTHER REIN FORCE A STRONG TRACK RECORD OF GROWTH IN NORTH AMERICAN REGION GRO W & IM PJ'CT US$ 5.7bn CertainTeed SAINT- GOBAIN Sa/es 2021 19°/o EBITDA margin 2021 Only North American manufacturer offering +12°/o a full breadth of Sa/es CAGR 18-21 ROOFING INSULATION buil
Slide 6: Siding applications are well positioned for growth
1 SI DING APPLICATIONS ARE WELL POSITIONED FOR GROWTH 1 GROW & IMPJ'CT CertainTeed s1o1NG SAINT-GOBAIN • . -US$ 600m in Net Sales and #2 PLAYER in North America vinyl siding SI DING • LEADING BRAND in vinyl siding, shakes, trim and millwork A KEY COMPONENT TO RESIDENTIAL LIGHT CONSTRUCTION • BEST-IN
Slide 7: Saint-Gobain is the leader in light construction in Canada
1 1... SAINT-GOBAIN IS THE LEADER IN LIGHT CONSTRUCTION IN ~ CANADA WITH A STRONG TRACK RECORD OF GROWTH GRO W & IM PJ'CT Canada is a strong and profitable country CertainTeed has leading positions in wallboard for Saint-Gobain ... and interior solutions in Canada > Leading positions in interior sol
Slide 8: Kaycan is the leading siding player in Canada
1 1 KAYCAN IS THE LEADING SIDING PLAYER IN CANADA GRO W & IM PJ'CT US$ 472m US$ 83m 17 .6°/o 12 ---1,300 2021-2022E Revenue1 2021-2022E 2021-2022E Manufacturing Plants Employees Adj. EBITDA 1 EBITDA margin 1 A BROAD EXTERIOR SOLUTIONS PLATFORM, COMPLEMENTARY WITH CERTAINTEED'S PRODUCT PORTFOLIO, WIT
Slide 9: Kaycan: track record of outstanding performance
1 1KAYCAN: TRACK RECORD OF OUTSTANDING PERFORMANCE GRO W & IM PJ'CT Strong revenue growth ... ... cou pied with increasing EBITDA margins Net Revenue (US$ m) Adj. EBITDA (US$ m) CAGR +11% / / CAGR +23% 472 / 83 310 36 2017-2018 2021-2022E1 2017-2018 2021-2022E1 1. 2021 -2022E =fiscal year starting A
Slide 10: Acquisition strengthens Saint-Gobain position in Canada
1 1 ACQUISITION STRENGTHENS SAINT-GOBAIN POSITION IN CANADA GROW & IMPJ'CT Kaycan brings leadership position in siding and an expanded portfolio of exterior solutions BE FORE A FT ER 11 900 20 1,900 Manufacturing Employees Manufacturing Employees • • • plants plants •• CertainTeed e Ceilings e Gypsu
Slide 11: Tailored go-to-market approach to maximize market share
1 1 TAILORED GO-TO-MARKET APPROACH TO MAXIM IZE MARKET SHARE G RO W & IM PJ'CT Strong integrated distribution network in Canada Strong external distributor partners in the US • ln the US, Kaycan primarily sells through 1-step specialty roofing & siding distribution and big box retail • Kaycan is the
Slide 12: Kaycan further expands exterior solutions portfolio
1 KAYCAN FURTHER EXPANDS EXTERIOR SOLUTIONS PORTFOLIO 1 GROW & IMPJ'CT CertainTeed KAYCAN *GCP waterproofing business - acquisition in progress
Slide 13: Acquisition helps drive the circular economy ecosystem
1 1 ACQUISITION HELPS DRIVE THE CIRCULAR ECONOMY ECOSYSTEM GRO W & IM PJ'CT Waste reduction ~ Recycled content ~ 100% Kaycan implemented an established Waste generated from the production Kaycan engineered wood products takeback program for post- li ne for vinyl and aluminum products are FSC certifi
Slide 14: Strong value creation supported by significant synergies
1 1 STRONG VALUE CREATION IS SUPPORTED BY SIGNIFICANT SYNERGIES GROW & IMPJ'CT Total synergies (excl. Implementation costs)- EBITDA · t • Rationalization of commercial and back-office US$ rn functions and Kaycan corporate costs 30 • Manufacturing efficiencies (World Class Manufacturing) and freight
Slide 15: Another major step in Saint-Gobain's growth and profitability journey in North America
1 1 ANOTHER MAJOR STEP IN SAINT-GOBAIN'S HIGHLY SUCCESSFUL GROWTH AND PROFITABILITY J OURNEY IN NORTH AMERICA GRO W & IM PJ'CT Pro forma sales (US$) Pro forma EBITDA (US$) >10bn -2bn ~ SAINT-GOBAIN 2018 ,. CONTINENTAL"" atJ l.DING PROOUC TS /~ ~· ,\, 1 gcp \ . ~- •/ ,_ KAYCAN Organic ~ growth SAINT-
Slide 16: Transaction overview
1 / TRANSACTION OVERVIEW GROW & IMPJ'CT • Total Enterprise Value of US$ 928m representing a 11 .2x FY 2021-2022E(1) EBITDA multiple • Net Enterprise Value of US$ -820m post US distribution divestiture resulting in a - S.Ox FY 2022E(1) EBITDA multiple including full synergies (US$ 30m) • Value creati
Slide 17: A decisive step for Saint-Gobain leadership in light & sustainable construction
1 1 A DECISIVE STEP FOR SAINT-GOBAIN LEADERSHIP IN LIGHT & SUSTAINABLE CONSTRUCTION IN NORTH AMERICA GRO W & IM PJ'CT Enrich and reinforce Siding Strengthen Group presence Very sol id team to deliver and Exterior Solutions in North America strong value creation A value-creating and growth-driven acq
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