Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — H1 2024 Earnings Presentation
39 slides from Compagnie De Saint-gobain Sa's earnings presentation, Jul 26, 2024
Slide 1: H1 2024 Results and Outlook
H1 2024 RESULTS AND OUTLOOK July 26th, 2024 UAE Pavilion World Expo
Slide 2: H1 2024 Highlights
H1 2024 HIGHLIGHTS Benoit Bazin Chairman and CEO Fraunhofer IEE Institute Germany
Slide 3: Light & Sustainable Solutions for Residential
Paris 2024 Olympics – Athletes’ Village 14 Saint-Gobain solutions LIGHT & SUSTAINABLE SOLUTIONS FOR RESIDENTIAL Portum Towers – Bratislava, Slovakia 3 7 Saint-Gobain solutions
Slide 4: Light & Sustainable Solutions for Non-Residential
Hotel St. Martin – Rome, Italy 11 Saint-Gobain solutions LIGHT & SUSTAINABLE SOLUTIONS FOR NON-RESIDENTIAL Meta Headquarters – Gurugram, India 4 7 Saint-Gobain solutions
Slide 5: Light & Sustainable Solutions for Renovation
Comprehensive solutions for renovation of Victorian houses, UK Leveraging world-class testing facility at the University of Salford LIGHT & SUSTAINABLE SOLUTIONS FOR RENOVATION University of Alberta – Canada 5 8 Saint-Gobain solutions
Slide 6: Light & Sustainable Solutions for Infrastructure
Ariane – French Guiana Meta 6Headquarters – Gurugram, Space Center India Comprehensive range 7 Saint-Gobain of high-performance solutions construction chemicals LIGHT & SUSTAINABLE SOLUTIONS FOR INFRASTRUCTURE Hotel Martin––Brazil St.Airport Floripa Rome, Italy 6 11 10Saint-Gobain Saint-Gobainsoluti
Slide 7: H1 2024: Strong Results Despite a Challenging Environment
H1 2024: STRONG RESULTS DESPITE A CHALLENGING ENVIRONMENT Sales €23.5bn -4.9% like-for-like Record operating margin 11.7% vs 11.3% in H1 2023 Strong recurring net income €1.7bn Record levels of free €2.5bn cash flow 75% cash conversion ratio Paris 2024 Olympics – Athletes’ Village – Paris, France 7
Slide 8: Continues to Drive Success
CONTINUES TO DRIVE SUCCESS increasing year-on-year even in a challenging environment and continued Solutions approach increasing our Don’t show bricks reinforcing product mix and Significant milestones in strategic repositioning towards and Fraunhofer IEE Institute Germany 8 H1 2024 RESULTS
Slide 9: Expanding Presence in High-Growth Markets
EXPANDING Acquisition of Acquisition of FOSROC1 in PRESENCE IN CSR in construction HIGH-GROWTH Australia chemicals MARKETS ~€2bn sales Pic with some plasterboard also ~€450m EBITDA (including €100m of synergies in year 3) Change the image – same one as before or other Acquisition of Bailey in Canada
Slide 10: H1 2024 Results: Group
H1 2024 RESULTS Group Sreedhar N. Chief Financial Officer CNESST HQ Quebec 10
Slide 11: First-Half 2024 Sales
FIRST-HALF 2024 SALES 2024/2023 -4.9% like-for-like -0.3% -0.8% Sequential improvement in volumes -1.0% -6.0% Prices stable sequentially -3.9% Structure impact turned positive in Q2 with the continuous optimization of the 24,954 Change Q2-2024/Q2-2023 23,464 Group’s profile (€m) FX Structure Price V
Slide 12: New Record Operating Margin
NEW RECORD OPERATING MARGIN Operating income in €bn and margin in % 2.8 2.8 2.8 Further improvement in operating margin, 2.4 reaching a new record-high of 11.7% 11.7% Operating income resilient in a difficult 11.3% environment 11.0% Positive price-cost spread 10.7% Proactive cost management H1-2021
Slide 13: New Record EBITDA Margin
NEW RECORD EBITDA MARGIN H1-2023 H1-2024 €m EBITDA 3,738 3,652 EBITDA margin 15.0% 15.6% Operating income 2,813 2,751 Non-operating costs (55) (125) Asset write-downs and impacts resulting from (150) (138) changes in Group structure Capital gains (losses) and other (314) (26) Net financial expense (
Slide 14: Record Levels of Free Cash Flow Generation
RECORD LEVELS OF FREE CASH FLOW GENERATION Free cash flow in €bn and conversion ratio in % 2.5 2.2 Very good cash conversion ratio of 75% New reduction in OWCR* 75% Strong cash culture 65% H1-2023 H1-2024 * Operating Working Capital Requirement 14 H1 2024 RESULTS
Slide 15: H1 2024 Results: Segments
H1 2024 RESULTS Segments Sreedhar N. Chief Financial Officer Forest Campus, Warsaw Poland 15
Slide 16: Europe, Middle East & Africa
EUROPE, MIDDLE EAST & AFRICA: SEQUENTIAL IMPROVEMENT IN VOLUMES, CLOSE TO A LOW POINT; OPERATING MARGIN STABLE AT A RECORD LEVEL 1,259 -0.3% 1,125 -2.3% -10.5% -7.9% Change in volumes Q1 Q2 by quarter -8.2% -3.7% 8.7% 8.7% 14,397 12,890 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sa
Slide 17: Americas: Sales Growth in North America and Record Operating Margin
AMERICAS: SALES GROWTH IN NORTH AMERICA AND RECORD OPERATING MARGIN +1.2% +3.8% 945 +2.3% 852 +0.3% 19.0% 17.8% 4,784 4,967 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sales H1-2023 H1-2024 Change in sales on North America Latin America a like-for-like basis +4.1% -7.6% 17 H1 2024 R
Slide 18: Asia-Pacific: Organic Sales Growth and Record Operating Margin
ASIA-PACIFIC: ORGANIC SALES GROWTH AND RECORD OPERATING MARGIN -0.3% 130 134 +1.2% +1.9% -3.4% 13.0% 12.5% 1,036 1,033 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sales H1-2023 H1-2024 18 H1 2024 RESULTS
Slide 19: High Performance Solutions: Sequential Improvement in Organic Growth
HIGH PERFORMANCE SOLUTIONS: SEQUENTIAL IMPROVEMENT IN ORGANIC GROWTH AND STABLE OPERATING MARGIN -0.2% -3.8% -0.1% 633 610 -3.5% Change in sales on Q1 Q2 a like-for-like basis by quarter -5.4% -1.6% 12.3% 12.3% 5,163 4,969 H1-2023 sales Exchange rates Structure like-for-like H1-2024 sales H1-2023 H1
Slide 20: Strategy
STRATEGY Benoit Bazin Chairman and CEO Fraunhofer IEE Institute Germany
Slide 21: We have repositioned the Group on strong markets
We have repositioned the Group 01 on strong markets 02 We have all the levers to outperform 21
Slide 22: Continued Repositioning Towards High-Growth Markets
CONTINUED REPOSITIONING TOWARDS HIGH-GROWTH MARKETS of sales rotated Share of Group operating income since end of 2018 35% North America 1 x3 Asia & emerging 18% 32% in € countries + 24% ~20% EBITDA / Sales of growth capex in North America, 58% 33% Western Europe Asia & emerging €9.4bn countries Bef
Slide 23: Structural Need for New Build & Renovation in North America and Emerging Markets
STRUCTURAL NEED FOR NEW BUILD & RENOVATION IN NORTH AMERICA AND EMERGING MARKETS 35% of Group ASIA & 32% of Group NORTH AMERICA operating profit EMERGING MARKETS operating profit Structural housing shortage Increasing levels of urbanization additional urban population in Asia current housing supply
Slide 24: Leadership Positions Established in Canada & Australia
LEADERSHIP POSITIONS ESTABLISHED IN CANADA & AUSTRALIA Paul Dalton CEO, CSR Collaboration in sales, distribution and product development, driving growth and market share gains in the US and Canada Enhanced customer offering with complementary solutions. Unlocking technical & procurement synergies in
Slide 25: Further Strengthening Our Growth Platform in Construction Chemicals
FURTHER STRENGTHENING OUR GROWTH PLATFORM IN CONSTRUCTION CHEMICALS DELIVERING WELL ON & AND SOON REINFORCING OUR POSITION WITH Know-how deployment across geographies for technical applications, e.g. tunnels Highly complementary geographic footprint with exposure to the high-growth markets of India,
Slide 26: Well-Positioned on the Resilient European Renovation Market
WELL-POSITIONED ON THE RESILIENT EUROPEAN RENOVATION MARKET WITH OUR COMPREHENSIVE SOLUTIONS • Recovery in household confidence • EED1 – compulsory decline in energy consumption in • Lower mortgage rates to support existing home public buildings transactions • EPBD1 – renovation of least performing
Slide 27: We have all the levers to outperform
01 We have repositioned the Group on strong markets 02 We have all the levers to outperform 27
Slide 28: Structural Effectiveness Through Our Country-Led Organization
STRUCTURAL EFFECTIVENESS THROUGH OUR COUNTRY-LED ORGANIZATION 90% of CEOs native to their country Constant focus on price-cost management Country CEOs shaping tailor-made Proactive operational action plans to adjust solutions adapted to local nuances cost structure to market changes Agile decision-m
Slide 29: Leading One-Stop-Shop for Construction Solutions
LEADING ONE-STOP-SHOP FOR Mike Chaldecott CEO Saint-Gobain UK CONSTRUCTION SOLUTIONS & Ireland LOW-CARBON METAL FRAMES ROOF STEEL TRUSSES • Unique testing capabilities to FRAME PARTITIONS – demonstrate solution effectiveness REINFORCED ACOUSTIC, THERMAL, PLASTERBOARD MOISTURE & FIRE PROTECTION • Cus
Slide 30: Outperformance Through Differentiated Solutions
OUTPERFORMANCE THROUGH DIFFERENTIATED SOLUTIONS ENVEOVENTS CHRONO insulated exterior façade for thermal and acoustic comfort Reduction in energy consumption of the COOL-LITE® XTREM building double glazing with reinforced thermal insulation and solar control WEBER ETICS2 for external insulation Incre
Slide 31: Outperformance Through Innovation
OUTPERFORMANCE THROUGH INNOVATION country launches worldwide sales 8 by end-2024 3x 2023 vs. 2019 recycled 81 country launches 80% material 10 patents filed Group marketing & development team rolling out innovations across the Group 31 H1 2024 RESULTS
Slide 32: Outperformance Through Low-Carbon Offers
OUTPERFORMANCE THROUGH LOW-CARBON OFFERS CARBON INDICATOR 3.79 kg CO2 eq./sqm over 50 years Learn more Low-carbon plasterboard Low-carbon glass with Low-carbon production Additives and admixtures Publication of carbon with 70% lower carbon 42% lower carbon of siding (96% lower for low-carbon cement
Slide 33: The Group Is Strongly Positioned to Continue to Outperform
THE GROUP IS STRONGLY POSITIONED TO CONTINUE TO OUTPERFORM Square CSR house Value accretive capital Innovative and value- Leadership in sustainable allocation in high-growth added solutions enabling construction markets customer success 33 H1 2024 RESULTS
Slide 34: Outlook
OUTLOOK Benoit Bazin Chairman and CEO Fraunhofer IEE Institute Germany
Slide 35: 2024 Outlook
2024 OUTLOOK • Europe: resilience in renovation; new construction remaining difficult before gradually reaching a low point country by country • Americas: construction to hold firm in North America (new build and renovation); recovery expected in Latin America • Asia-Pacific: good growth led mainly
Slide 36: 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 37: H1 2024 Results and Outlook
H1 2024 RESULTS AND OUTLOOK July 26th, 2024 Luma Foundation France
Slide 38: 2023 End Markets Sales Split
2023 END MARKETS1 SALES SPLIT NEW RESIDENTIAL 7% 7% 7% 2% CONSTRUCTION 23% NEW NON-RESIDENTIAL 4% 3% 3% 1% 2% CONSTRUCTION 13% 14% 21% 9% 5% RENOVATION / INFRAST. 1% 50% INDUSTRIES 14% 14%2 NORTHERN SOUTHERN AMERICAS ASIA-PACIFIC HPS EUROPE EUROPE - 19% 4% 21% 25% ME & AFRICA 31% 1. Saint-Gobain est
Slide 39: Continued State Support in Energy Renovation
CONTINUED STATE SUPPORT IN ENERGY RENOVATION NETHERLANDS NORWAY DENMARK • Office buildings required to have minimum C class EPC • Publication in Oct-23 of an energy efficiency action plan DKK 30bn allocated from the National Building fund for • Additional borrowing capacity for energy renovations fo