Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Investor Day (October 2021)
152 slides from Compagnie De Saint-gobain Sa's investor day presentation, Oct 6, 2021
Slide 1: Capital Markets Day 2021
| Capital Markets Day 2021 oon WD SAINT-GOBAIN
Slide 2: Strategy: Be the worldwide leader in light & sustainable construction
Capital Markets Day SAINT-GOBAIN STRATEGY Be the worldwide leader in light & sustainable construction Benoit Bazin Chief Executive Officer
Slide 3: Carbon neutrality commitments and government stimulus
>70% worldwide GDP committed to carbon neutrality targets >€1 trillion of government stimulus post-COVID focused on renovation & construction >80% share of investors with ESG policy (active or under development) Sources: World Bank (IFC – Green building), World Green Building Council, Country stimul
Slide 4: Construction's CO2 emissions and resource consumption
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 Source: World Green Building Council, World Bank, UN projections 2015-2050 Capital Markets Day - 6 October 2021 3
Slide 5: Grow & Impact 2021-2025
Making the Worlda Better Home BE THE WORLDWIDE LEADER IN LIGHT & SUSTAINABLE CONSTRUCTION GROWg IMPACT 2021-2025 ont WD SAINT-GOBAIN
Slide 6: Solution-driven & innovative leader steering structural market shifts
Solution-driven & Focused strategy towards New powerful business innovative leader steering light & sustainable governance & culture, structural market shifts construction truly multi-national Capital Markets Day - 6 October 2021 5
Slide 7: Leverage positioning, outperform markets, strengthen shareholder value
Leverage attractive positioning on accelerating markets • Renovation in Europe • Light construction adoption in North America & emerging markets • Accelerated sustainability momentum on industrial markets Outperform underlying markets • Drive towards customer-centric solutions • Focus on performance
Slide 8: Green deal stimulus and building standards
Green deal Upward revision of Transformed stimulus building standards building usage Including renovation Fit for 55 Package Energy Performance +2 days of Buildings Directive in work from home per week vs pre-pandemic2 €9.1bn1 €6.8bn 2020 Climate & energy bill Mandatory energy efficiency Standard by
Slide 9: From traditional heavy build to light construction
From traditional heavy build… …to light construction Capital Markets Day - 6 October 2021 8
Slide 10: Light construction market growth
In all geographies Strong rationale Light construction growth = Construction growth + Penetration of light construction Construction decarbonization, 1 resource intensity reduction -50% raw material usage Saint-Gobain light construction Market size Time & productivity gains 2 for fast urbanization U
Slide 11: Sustainable construction, mobility and industry
Sustainable construction Sustainable mobility Sustainable industry Decarbonization technologies Technologies for glazing & Specialty materials for industrial for global construction players electric vehicle solutions processes decarbonization Capital Markets Day - 6 October 2021 10
Slide 12: Market growth by region 2021-2025
Western North Emerging Global Europe America countries markets3 Market growth1 (2021-2025) 2-4% 2-4% 4-6% 3-4% • with • • Robust • Accelerated We will make EU fit for 55 with technologies for the most of light construction unprecedented Market drivers • Upward revision of • stru- • structural trends
Slide 13: Average organic growth target
Acceleration of underlying markets Saint-Gobain outperformance 3-5% Average organic growth target 2021-25* Excluding any major economic slowdown Saint-Gobain organic growth *Average organic sales growth target over 2021-2025 including 2021 normalized vs 2019 Capital Markets Day - 6 October 2021 12
Slide 14: Leverage positioning, outperform markets, strengthen shareholder value
Leverage attractive positioning on accelerating markets • Renovation in Europe • Light construction adoption in North America & emerging markets • Accelerated sustainability momentum on industrial markets Outperform underlying markets • Drive towards customer-centric solutions • Focus on performance
Slide 15: Building-related CO2 emissions and decarbonization levers
Building-related CO2 emissions Available decarbonization levers Light construction (including 12% 25% out of 40% manufacturing & distribution) CONSTRUCTION 40% Renovation & building CONSTRUCTION Carbon neutral resource & production of world CO2 envelope USAGE emissions 28% USAGE Energy mix decarboni
Slide 16: Widest range in the construction industry: usage
Widest range in the construction industry EXTERNAL RENOVATION INTERIOR SYSTEMS INSULATION SOLUTIONS 28% USAGE FLOORING SYSTEMS FAÇADES & GLAZING DIGITAL SERVICES of world CO2 emissions WATERPROOFING ROOFING DISTRIBUTION >50% of Group sales Capital Markets Day - 6 October 2021 15
Slide 17: Widest range in the construction industry: construction
Widest range in the construction industry FAÇADE SOLUTIONS INTERNAL PARTITIONS LIGHT STRUCTURES 12% CONSTRUCTION INSULATION SYSTEMS CEILINGS KITTING SERVICES of world CO2 emissions CLADDING SOLUTIONS OFF-SITE NET-ZERO CO2 PLANT 40% of Group sales Capital Markets Day - 6 October 2021 16
Slide 18: Differentiation & outperformance
Off-site Light Building Partition systems manufacturing façades Science modeling Systems High performance Smart glazing connected to ETICS systems systems Building Management Common logistics Intermediation Aftermarket & kitting services platforms sales Services along the value chain Unmanned Recycl
Slide 19: Sustainability and performance
Sustainability Performance Green Well-being Economic value User experience • CO2 & ENERGY SAVINGS • HEALTH & SAFETY • PRODUCTIVITY • AESTHETICS & DESIGN • RESOURCES & CIRCULARITY • COMFORT • FINANCIAL BENEFIT • TRUSTED SOLUTIONS • Visual • Acoustic • Thermal • Air quality 72% sustainable sales* *Ana
Slide 20: Offer designed to maximize dedicated benefits
Craftsmen (General Property Manager/ Developer Architect/Civil Engineer Contractor if any) Tenant or Owner Ease of collaboration Supply services Customized product Total cost of ownership Technical performance Ease of installation Energy efficiency Training/project On-time delivery Price management
Slide 21: Use cases demonstrating value brought by Saint-Gobain
Single-family home renovation Multi-family home new build Single-family home new build Construction in North America School or hospital renovation Office new build Green mobility Construction in emerging markets Multi-family home renovation Multi-family home new build Glass furnaces Renovation & lig
Slide 22: Answering carbon neutrality, circularity, urbanization, productivity
Carbon neutrality, circularity, urbanization, productivity… …Saint-Gobain will answer with & multi-national presence to … …supported by a performance-driven Capital Markets Day - 6 October 2021 21
Slide 23: Leverage positioning, outperform markets, strengthen shareholder value
Leverage attractive positioning on accelerating markets • Renovation in Europe • Light construction adoption in North America & emerging markets • Accelerated sustainability momentum on industrial markets Outperform underlying markets • Drive towards customer-centric solutions • Focus on performance
Slide 24: Time-to-market, pay-back, differentiation
Time-to-market Decarbonize the world Drive circularity Pay-back Differentiation Enhance health Increase performance and well-being for our customers Capital Markets Day - 6 October 2021 23
Slide 25: Largest access to customer touch points across the value chain
We have the largest access to customer touch points across the value chain Innovation End-of-life Offer enrichment Project support Distribution recycling Co-development Production Delivery/logistics Digital services Unlock value out of all our data Capital Markets Day - 6 October 2021 24
Slide 26: Maximize our impact, minimize our footprint
Maximize Minimize our impact & our footprint for our customers, from our solutions sold in 1 year 1. ~1,300 Mt on all 3 scopes, >100x on scope 1 & 2 Capital Markets Day - 6 October 2021 25
Slide 27: Sustainability roadmaps and World Class Manufacturing
Sustainability roadmaps Productivity & World Class Manufacturing program Capex & footprint optimization Capital Markets Day - 6 October 2021 26
Slide 28: Country CEOs and employee shareholders
Lars Gaustad Peter Göran Moeller Dahlin 90% CEOs native Mike Olli to their country Raimund Nikula Paul Chaldecott Heinl Sheng Full local ownership on Saint- Joanna Greg Czynsz- Lee Gobain business in their country Peter Piechowiak Giffinger Shaping local construction Tomas Thierry ecosystems with ad
Slide 29: Execution speed and customer centricity
Execution speed & quality OUTPERFORMING ORGANIC SALES GROWTH VS PEERS1 • Lean organization 2.6 pts • One-boss principle for fast decision-making 2.2 pts • Trust, Empowerment, Collaboration 1.3 pt Customer centricity -1.6 pt -2.1 pts • 80% of countries have joint specification team 2017 2018 2019 202
Slide 30: Incentives aligned to country performance
Yearly bonus: 100% aligned to own country performance (vs ‘solidarity in a matrix’ in past) on EBITDA, ROCE & Cash (2x weight of financial KPIs vs past) Long-term incentives for top 2,300 managers1 60% Group ROCE 20% Group share price vs CAC 40 only if outperformance 20% Group ESG quantitative objec
Slide 31: Leverage positioning, outperform markets, strengthen shareholder value
Leverage attractive positioning on accelerating markets • Renovation in Europe • Light construction adoption in North America & emerging markets • Accelerated sustainability momentum on industrial markets Outperform underlying markets • Drive towards customer-centric solutions • Focus on performance
Slide 32: Speed of execution and focus on growth & cash
Speed & consistency of execution Focus on growth & cash Alignment of management accountability & compensation Strategic pruning of the business profile through M&A Capital Markets Day - 6 October 2021 31
Slide 33: 2021-2025 mid-term actions and long-term ambition
2021-2025 mid-term actions Long-term ambition Emerging countries Leverage renovation in Europe using our footprint & solutions leadership 25% Expand light construction in North America through our Geographical solutions range for both residential & commercial exposure (as % of Group sales) 55% Expan
Slide 34: Portfolio, M&A and capex priorities
Regular perimeter review Value creative acquisitions Capex for growth 1 Performance Growth, margin, cash 1 Consolidation of leadership positions 1 Greenfields & brownfields in growing markets Notably North America and Asia 2/3 of growth capex allocated outside Western Europe Strategic alignment Offe
Slide 35: ESG at the core, best-in-class financials
ESG at the core Best-in-class financials organic growth margin cash generation Disciplined capital allocation focused on returns Attractive shareholder returns (dividends & buybacks) Capital Markets Day - 6 October 2021 34 Capital Market Day - 6 October 2021 34
Slide 36: A management team committed to deliver results
A MANAGEMENT TEAM COMMITTED TO DELIVER RESULTS Patrick DUPIN Northern Europe Claire PEDINI Human Resources and Corporate Social Responsibility Thierry FOURNIER Southern Europe, Middle East & Africa Laurence PERNOT Communication Benoit BAZIN Chief Executive Officer Javier GIMENO Latin America SREEDHA
Slide 37: Presentation parts and speakers
Part 1: Grow & Impact, 2025 Strategy Benoit Bazin Part 2: Solutions in Action Region/HPS CEOs Part 3: ESG - Maximize our impact, Minimize our footprint Claire Pedini Part 4: Operational Excellence in our DNA Benoit d'Iribarne Part 5: Digital Acceleration Ursula Soritsch-Renier Part 6: Solution-
Slide 38: Americas
Capital Markets Day AMERICAS Mark Rayfield Javier Gimeno CEO North America Region CEO Latin America Region
Slide 39: Americas profile
Americas profile €6.3bn sales1 16.2% operating margin1 • #1 in USA and Canada 21,500 employees 116 plants • #1 in Brazil and Argentina 1. Last 12 months at end-June 2021 Capital Markets Day - 6 October 2021 38
Slide 40: North America
Capital Markets Day NORTH AMERICA Mark Rayfield CEO North America Region
Slide 41: North America profile and business overview
North America profile Business overview Only North American manufacturer offering full breadth of building materials for Light Construction 16.0% operating margin1 $5.1bn sales 8,300 employees 61 plants Preferred brand of contractors and homeowners 1. Last 12 months at end-June 2021 Capital Markets
Slide 42: Strong market perspectives in North America
Strong market perspectives Light construction Labor saving solutions 3.8m1 units housing supply deficit ~45%2 of all construction products 37%3 of contractors are concerned spend in North America is in about growing workforce residential light construction shortages Structural housing needs led by L
Slide 43: Winning in North America
Winning by: Unleashing full potential in North America 1 with Transform & Grow platform: operational excellence, agility, scale, and leverage US light construction: Solutions for growth: Expanding our #1 position in light residential solutions new build single-family home construction in the US and
Slide 44: Gypsum consolidation and operational leverage
Build on successful Deliver strong leverage gypsum consolidation with operational excellence Value creation in year 2 Revenue Synergies delivered faster Operating Profit income (>$40m est. in 2021, >$50m est. in 2022) SG&A 7x 2021 EBITDA est. 2017 2018 2019 2020 2021 Entry into retail across broad S
Slide 45: One face to the market
One face to the market Comprehensive market approach Comprehensive commercial market offer Over 3,000 distinct touchpoints a week – Singular 360 view of our customers Residential team approach Diversity at all levels drives innovation Collaborating to and retention build strategic retail partnership
Slide 46: Customer intimacy and market leadership
Customer intimacy Market leadership Organization matches the needs of customers Larger share of wallet per home with wide range of aesthetic… Exterior residential solution with siding & roofing color complementing pallets …and more sustainable solutions Future solar aesthetic versus traditional roof
Slide 47: Products & services: single-family home new build
SOLUTION USE CASE Single-family home new build1 24 Products & services $100k savings over 30 years 95% thermal comfort satisfaction Index Single-family home new build – North Canton, Ohio Our differentiating attributes • Minimizing total cost of ownership - lower maintenance 99.5% costs and energy b
Slide 48: Latin America
Capital Markets Day LATIN AMERICA Javier Gimeno CEO Latin America Region
Slide 49: Latin America profile and key strengths
Latin America profile Key strengths Broadest portfolio with leading brands 16.8% operating margin1 €1.8bn sales Interior solutions Exterior solutions 13,200 employees 55 plants in 9 countries Façades Ceilings Optimized footprint with dense industrial & logistics networks and strong local joint ventu
Slide 50: Engaged organization and comprehensive market approach
Highly engaged Comprehensive Brand loyalty earned by organization market approach highest standards • Joint multi-brands sales force Synergies by verticals & dedicated • Price premium for all key Saint-Gobain sales teams: brands • Unique solution offering • for façades • ~25%1 of Latin America consu
Slide 51: Products & services: multi-family home new build
SOLUTION USE CASE Multi-family home new build1 1,055t 1 13 Products & services CO2 eq 3 months saved with lightweight avoided with the façade, -79% materials avoided construction through light partitions, fewer method workers required 2 -50% noise disturbance (-10dB, divided by 2) Through constructi
Slide 52: Gaining market share and enriching product range
Continue gaining market shares Enrich product range & innovate • By verticals: solutions for schools, hospitals, offices +14% organic sales CAGR 2019 - 2021 • With specialty products +2.5 pts market share in Latin America vs 2018 • With marketplaces to digitalize construction sector 15 new lines lau
Slide 53: Offer enrichment and market positions
Brazil Top Full range #1 #1 #1 #2 5 of light 35 plants Glass Construction Gypsum Insulation Roofing construction chemicals & ceilings Argentina / #1 #1 #1 #2 Chile / Peru 13 plants Glass Construction Insulation Gypsum chemicals Mexico #2 #4 4 plants Glass Gypsum Offer Colombia 3 plants #1 #2 Enrichm
Slide 54: Americas 2021-2025 targets
North America 2021 - 2025 Further consolidate our leadership position in light construction Expand our range for growing Average organic residential & commercial markets 4-6% sales growth Latin America Leverage our brands to answer middle-class housing expectations 13-15% Operating margin Expand our
Slide 55: Asia-Pacific
Capital Markets Day ASIA-PACIFIC Santhanam B. CEO Asia-Pacific and India Region
Slide 56: Asia-Pacific profile
Asia-Pacific profile Leading position in fast-growing countries €1.7bn sales1 12.4% operating margin1 2 17 1 10,100 employees 29 23 72 Plants in 11 countries Excellent brand equity Innovative solutions for hot/humid climate #1 India #3 China2 #1 Vietnam #2 Indonesia #2 Thailand 1. Last 12 months at
Slide 57: Urbanization, digitalization, light construction
Urbanization Digitalization Light construction 60% 2.7 billion Speed & quality of construction world’s population & largest mobile internet users in 20252 middle class1 Skills & resources 51% $2 trillion shortage urbanization rate2 e-commerce market in 20253 1. World population review - 2021 2. Stat
Slide 58: Winning with comprehensive solutions
Winning with comprehensive solutions Multi-family homes Lodha World One - Mumbai, India Integrated performance solutions for office new build Home solutions for Office spaces new build Single-family homes multi-family & single-family homes Value chain digitalization - China Digitalization of solutio
Slide 59: Products & services: office new build
SOLUTION USE CASE Office new build1 13.7kt 1 CO2 eq 76% time reduction for avoided with installation and 1900+h EE improvements of training 16 Products & services (over 50 years) 2 +26% average 9% (-€52k) energy savings per luminosity year compared with standard glass (heat gain reduction) 3,760t 3
Slide 60: Winning with new business models
Winning with new business models • Leading position on the fast growing residential market • Rising consumption pattern – larger homes, superior interiors Opportunity • Solutions for homeowners & developers • Partnerships with digital aggregators & franchisees • End-to-end digitally integrated desig
Slide 61: Winning with digitalization
Winning with digitalization • Digitalization of customer journey • Fast acceleration of points of sales in Tier 1, 2, 3 cities Opportunity Digital sales platform • Scale up successes across Asia • E-commerce capability of China & India • Unified CRM & Data analytics garage of India How we are • Leve
Slide 62: Brand, market shares, footprint and digital capabilities
TRUSTED BRAND 68% spontaneous awareness +17% HIGH MARKET SHARES >50% in glass & gypsum MANUFACTURING FOOTPRINT +27 new plants in 2001-2021 DIGITAL CAPABILITIES 1,400 digital experts World Glass Complex - India Capital Markets Day - 6 October 2021 61
Slide 63: Offer enrichment in Asia-Pacific
Full range India #1 #1 Top Top of light 29 plants 5 5 Building glass Gypsum Construction Ceiling construction chemicals China #1 #3 17 plants Gypsum Gypsum Construction plaster plasterboard chemicals Vietnam #1 #1 7 plants Ceiling Gypsum & Construction cement board & Metal framing chemicals Offer #2
Slide 64: Asia-Pacific key takeaways
Key takeaways 2021 - 2025 Expand our unique position • Saint-Gobain brand equity & talent Average organic • Unmatched range for warm & humid climate 8-10% sales growth • B2B2C approach • Digital native and technology mindset Roll out on fast-growing markets 13-15% Operating margin • India • China •
Slide 65: Europe
Capital Markets Day EUROPE Thierry Fournier Patrick Dupin CEO Southern Europe, Middle East CEO Northern Europe Region and Africa Region
Slide 66: Europe profile and key strengths
Europe profile Key strengths €28bn sales1 8.4% operating margin1 • #1 in light construction and renovation • Strong local footprint Manufacturing in all main countries 93,200 employees 3,500 distribution outlets • Brand & technology leadership 2m customers • Leading builder’s merchants 100% covered
Slide 67: Optimized portfolio and light structure
An optimized portfolio… …and a light structure Active reshaping in the past two years Lean countries ~30 divestments ~€150m structural savings ~€4.5bn sales in SG&A, plant and logistics fixed costs Regular review of businesses going forward Country ownership to drive joint sales forces Capital Marke
Slide 68: Strong renovation market trend
Strong market trend… …aligned with our positioning • Stimulus packages and new regulations • “More at home” new ways of living and working New residential Renovation construction • Unprecedented savings on European personal accounts 23% 12% 65% % sales2 New non-residential construction Renovation gr
Slide 69: Circularity, bio-sourced and off-site manufacturing
Circularity Bio-sourced Off-site manufacturing • Resource preservation & securing • Strong end-consumer perception • Manpower productivity and lower risk • Regulations & market push • Carbon neutrality for production • Positive environmental impact • Distribution as waste collector • New constructio
Slide 70: One-stop provider, common go-to-market, customer proximity
INTERIOR EXTERNAL RENOVATION INNOVATIVE AND COMPLETE SYSTEMS INSULATION SOLUTIONS Multiple set of RANGE OF OFFER 1 Being the one-stop provider for the widest range comprehensive solutions FLOORING SYSTEMS FAÇADES & GLAZING DIGITAL SERVICES of professional customers and needs TECHNICAL CEILINGS DISTR
Slide 71: Products & services: single-family home renovation
Solution use case Single-family home renovation1 274t Products & services 33 All sold & delivered by CO2 eq avoided with energy Through building energy efficiency and sustainable efficiency products and services improvements Attic insulation (over 50 years) Integra Vario Exterior insulation Weberthe
Slide 72: Products & services: multi-family home new build
SOLUTION USE CASE Multi-family home new build1 21 Products & services 3 months time saved Save building time thanks to off-site wood construction Ventilation duct Waterproofing Climaver Window triple glazing Climatop Eclaz External insulation 60% recyclable materials Up to 90% of the whole building
Slide 73: Winning with an innovative & complete offer range
Winning with an innovative 1 & complete offer range Mix enrichment Combined offer and systems Foundation of our business model Value proposition enrichment “ We grow our waterproofing and flooring systems thanks to our construction chemical “ Our off-site lightweight offer is allowing us to tackle t
Slide 74: Sustainability and resource efficiency offers
Winning with an innovative 1 & complete offer range Sustainability Resource Efficiency at same performance preservation on job-site Smart bubble technology launch allowing for 25% Pre and post consumer glass waste recycling Off-site offer allowing for time saving on job sites lighter plasterboard se
Slide 75: Winning with common go-to-market
2 Winning with common go-to-market Big projects specification Specific offer by market segment A reshaped organization • Common sales force across products & brands Montparnasse tower Saint-Gobain Solutions catalogue and • Specification teams retrofit, Paris offer for schools in the Netherlands by m
Slide 76: Winning with customer proximity
3 Winning with customer proximity Key priorities to leverage our position • Keep customer at the heart • Capture largest share of renovation wallet A remarkable network of 3,500 outlets of our • Use data day-to-day to enrich operations customer experience and • grow Drivecustomer base the ecosystem
Slide 77: Europe key takeaways
Key takeaways 2021 - 2025 Leverage our unique footprint along the value chain to take the largest share of renovation market Average organic 3-4% sales growth Outperform with ever-growing set of solutions 7-9% Operating margin Enrich our offer to develop new ways of construction Capital Market Day -
Slide 78: High Performance Solutions
Capital Markets Day HIGH PERFORMANCE SOLUTIONS David Molho CEO High Performance Solutions
Slide 79: HPS profile and growing end-markets
HPS profile Growing end-markets Construction Mobility Industry €7.1bn sales1 12.3% operating margin1 49,100 employees ~ 20% ~ 35% ~ 45% 240 plants of HPS sales2 of HPS sales of HPS sales #1 or #2 in all our Sustainability & performance main markets worldwide Unique materials expertise + Power of inn
Slide 80: Key trends: construction
Key trends Decarbonization New materials Performance • Leadership position in construction chemicals • #1 in glass fiber textile solutions (concrete admixture & cement additives) • Cross-selling across ETICS1, interior and • Innovative solutions for Sustainability façade solutions & Performance • On
Slide 81: Key trends: mobility
Key trends Electrification Connected vehicle Autonomous driving • #1 in electric vehicle glazing • Global portfolio of solutions (~20% of sales on electric vehicle by end 2021) in battery systems and electric motors • Leader in enhanced glazing and high value- • Co-development with global customers
Slide 82: Key trends: industry
Key trends Performance Clean energy Recycling Health & well-being • Innovation with industry leaders • #1 in high performance glass refractories • Advanced positions on fast-growing worldwide markets (biopharma, 5G, H2, electric • Leadership in specialty materials (ceramics, batteries) abrasives, po
Slide 83: Global footprint and specialty materials platform
Global balanced Specialty materials From products to solutions footprint innovation platform Global R&D Fueling innovation Repair and monitoring services for the Group Manufacturing close Co-development Connected products - IoT to customers Multi-material Resilience and flexibility Data-based servic
Slide 84: HPS key takeaways
Key takeaways 2021 - 2025 Leadership position on fast growing markets: sustainable construction, mobility & industry Average organic 4-5% sales growth Innovation platform for the Group in specialty materials and advanced solutions 13-14% Operating margin Committed to delivering attractive value crea
Slide 85: ESG: Maximize our impact, minimize our footprint
Capital Markets Day ESG MAXIMIZE OUR IMPACT, MINIMIZE OUR FOOTPRINT Claire Pedini Human Resources and Corporate Social Responsibility
Slide 86: ESG pillars
Build a decarbonated Drive circularity Pioneer the home into our markets highest standards Empower our local Foster an open & engaging work Act without any ecosystems environment compromise Capital Markets Day - 6 October 2021 85
Slide 87: ESG ratings and recognition
ESG SCORING AGENCIES INDICES & THIRD-PARTY RECOGNITION Ranked Low ESG Risk Top 6% of industry Ranked A Ranked Climate Change A- Top 3% of companies ranked Ranked Prime (C+) Top 10% of industry Capital Markets Day - 6 October 2021 86
Slide 88: Maximize our impact: avoided emissions
Maximize our impact Up to 70% 10% additional energy savings insulation with with External Eclaz® vs Thermal standard double Insulation glazing Systems (ETICS) ~1,300 Mt avoided emissions for customers1 = ~ 40x the Group carbon footprint (all 3 scopes) 95% heat loss x3 Road life reduction with using
Slide 89: Minimize our footprint: emissions
Minimize our footprint -15% energy consumption in Power Purchase glass factory in Agreement Italy1 Scopes 1&2 to be reduced by 33% in 2030 vs 2017 Evoluvert eco- transport Water withdrawal strategy to decrease: -18% reduce logistics since 2017 emissions 1. Organic Rankine Cycle turbine 2. Scope 1 &
Slide 90: Maximize our impact: circularity
Maximize our impact Waste-to-value: 50% of raw mat. contribution to avoided with industry-wide light façades recycling initiatives Objective: 75% sustainable sales by 2025 Life cycle management: >99% recovered gypsum refractory waste recycling Capital Markets Day - 6 October 2021 89
Slide 91: Minimize our footprint: waste
Minimize our footprint 10.1Mt virgin non-renewable raw materials 92% production avoided in waste recovered production process Objective: reduce non-recovered waste by 80% in 20301 Substitution of all 1,500 EPD2 : 1st plastic bags with issuer worldwide paper packaging for in construction mortars in B
Slide 92: Maximize our impact: well-being
Maximize our impact Acoustic comfort, Indoor air disturbance quality1: divided by 2: Activ’Air Ecophon plasterboard ceilings Objective: 75% sustainable sales by 2025 Controlled Ergonomic hydrothermal materials comfort: Vario for installers: membrane webercol 1. -70% formaldehyde gas Capital Markets
Slide 93: Minimize our footprint: health and safety
Minimize our footprint 100% roll-out of No lost time Health indicator accident in 82% (noise) of our sites1 Program to be rolled out worldwide from 2021 to 2023 Ergonomic risk: Mental Well-Being manual handling program risk to be eliminated 1. In 2020 Capital Markets Day - 6 October 2021 92
Slide 94: Inclusive growth, ethics, engagement and diversity
Inclusive growth Business ethics Double the rate of craftsmen Ethics and trainings to Compliance Day RGE1 certification Employee engagement and diversity 84% of our 25% women employees managers, 38% recommend on Executive Saint-Gobain Committee 1. Environmental Protection Certification in France Cap
Slide 95: ESG into management processes
ESG = 10% in STI1 for all executives, Embed 20% for all 2,300 beneficiaries of LTI2 ESG into ESG part of all capex validation management processes Board + ExCo ESG Committees Orchestrate the >22K employees in 41 ESG-linked communities Local ESG 75€/t CO2 price in capex, 150€/t in R&D decisions roadm
Slide 96: Composite sustainability progress indicator
Aggregating progress on 4 sustainability KPIs with one unique indicator Exhaustive list of KPIs reported in our annual Composite Sustainability progress Report Scope 1+2 indicator1 CO2 emissions Virgin raw materials > Climate change avoided Non-recovered waste 50 100 > Circular economy Progress 2030
Slide 97: Maximize our impact, minimize our footprint
Maximize Minimize our impact & our footprint from our solutions sold in 1 year 1.~ 1,300 Mt all 3 scopes, >100x on scope 1 & 2 Capital Markets Day - 6 October 2021 96
Slide 98: Operational excellence in our DNA
Capital Markets Day OPERATIONAL EXCELLENCE IN OUR DNA Benoît d’Iribarne Technology and Industrial Performance
Slide 99: Manufacturing savings, growth capex, net-zero plants
Delivering manufacturing and supply chain savings Prioritizing growth capex while optimizing maintenance capex Pioneering the next generation of net-zero carbon plants Capital Markets Day - 6 October 2021 98
Slide 100: Key levers of our Performance Roadmap
Key levers of our Performance Roadmap Productivity 35% Weight & formulation 25% Equipment 20% effectiveness Energy savings 10% Supply chain 10% Our World Class Manufacturing program boosts performance and fosters growth Capital Markets Day - 6 October 2021 99
Slide 101: Connected operators, automation and digital hub
>60% of our main sites are using our manufacturing digital hub Connected operators Automation Manufacturing digital hub sites 22,000 operators 4000+ robots With our digital suite, our shop floor team feels really empowered. Glass Operation Engineer, Jhagadia, India Capital Markets Day - 6 October 20
Slide 102: Optimization in production and supply chain
In production In supply chain Gypsum block process optimization Transport control tower Gypsum block production in Staviany, Czech Republic Transport & logistics in Brazil What we do H ow i t i m p a c t s What we do H ow i t i m p a c t s Smart correlation of Real-time planning process, quality & e
Slide 103: Growth capex and maintenance capex
Capital expenditure as a % of sales Growth capex Maintenance capex 1-2% 3.0% ~2.5% 1-1.5% Debottlenecking Greenfield 2015-2019 2021-2025 2015-2019 2021-2025 Strongly leverage our growth capex Save 20% on maintenance capex • Debottlenecking: additional growth • Footprint optimization leverage • Equip
Slide 104: New plants in growth markets
Plasterboard plant in India Glass plant in Mexico Mortars plant in Malaysia Roofing plant in Brazil Plaster plant in China Capital Markets Day - 6 October 2021 103
Slide 105: Path to 33% CO2 reduction by 2030
• Lighter products 100% • Industry 4.0 Performance Roadmap • Green investment1, recycling • Green energy • Power Purchase Agreements 66% -33% 2017 2020 vs Volume 2030 vs 17 growth 17 1. Enhanced by our 75€/t internal CO2 price for CapEx, 150€/t for R&D Capital Markets Day - 6 October 2021 104
Slide 106: Net-zero carbon gypsum and glass
Net-Zero Carbon gypsum Net-Zero Carbon glass Close collaboration with our ecosystems through partnerships Industrial test on a Saint-Gobain float line First Net-Zero Carbon gypsum Advanced industrial trials with biomass and plasterboard factory in Norway: 2023 hydrogen in flat glass factories Capita
Slide 107: Digital acceleration
Capital Markets Day DIGITAL ACCELERATION Ursula Soritsch-Renier Digital and IT
Slide 108: Future of construction
Source: Future of construction, World Economic Forum Capital Markets Day - 6 October 2021 107
Slide 109: E-commerce acceleration
Our focus How it impacts x3 +9% +18% Revenue from Basket size New omnichannel1 increase2 customers3 Where we stand E-COMMERCE ACCELERATION 30% 100% online sales in 20204 online sales in 2020 Fast digitization of customer interactions through digital platforms development 1. Dahl DK, revenue from cus
Slide 110: Unique data exploration
Our focus How it impacts1 Saint-Gobain Customer SALES2 Increased with churn optimization CUSTOMER INTIMACY MARGIN3 Pushing SOLUTIONS with pricing optimization across full Saint-Gobain portfolio Where we stand Advanced data analytics deployed in Distribution UNIQUE DATA EXPLORATION Leveraged through
Slide 111: Digital rendering
Our focus How it impacts1 Saint-Gobain Customer NEW PRODUCTS DATA SCIENCE DEVELOPED to drive marketing and leveraging digital rendering product development in North America Roofing FASTER TIME TO CUSTOMER INTIMACY MARKET with continuous feedback with visualization replacing plant trials and demo hom
Slide 112: Kitting and advanced custom deliveries
Our focus How it impacts1 Saint-Gobain Customer +30% -30% revenues on installation time associated material2 Specification -20% influence waste generated (zero waste) Where we stand Roll-out in: KITTING AND ADVANCED 20% CUSTOM DELIVERIES Design in BIM-environment, tailor-made cutting, Penetration cu
Slide 113: Digitally enabled construction site monitoring
Our focus How it impacts1 Saint-Gobain Customer Market share >90% growth reduction in rework Recognition as the Reputation for solutions expert quality of work Where we stand DIGITALLY ENABLED CONSTRUCTION SITE MONITORING >80% On-site sensors to monitor environmental conditions and improve construct
Slide 114: New digital services
Our focus How it impacts1 Saint-Gobain Customer Craftsmen journey +5pts higher sales Time saving Finish quote growth1 +15pts NPS score2 Training & information Quantify Look for material Buy Customer loyalty New jobs; loyalty points training needs products Look for Simulate energetic Where we stand n
Slide 115: Digital approach: foundational, explorative, scale-up
Foundational Explorative Scale-up Strategic moves Data as a service Apply inspiring & Scale promising POCs1 Software and data expertise Modular pre-approved promising technologies Productize components platforms Act as a catalyst for local pilots 1. Proof of Concept Capital Markets Day
Slide 116: Digital key takeaways
We are building an integrated digital powerhouse to support Saint-Gobain’s ambition Digital will be the cornerstone of the accelerated impact of our solutions We are tapping into our unique data goldmine Capital Markets Day - 6 October 2021 115
Slide 117: Solution-driven innovation
Capital Markets Day SOLUTION-DRIVEN INNOVATION Anne Hardy Innovation
Slide 118: Unique customer proximity
Developer Architects and engineers Total cost of ownership, Technical support, ease of collaboration, on-time delivery, specification influence, labeling schemes support to anticipate regulations support, product sampling Thousands of daily customer connections Consistent inflow of data points Owner
Slide 119: Innovation across sustainability and performance
Sustainability Off-site design ETICS on Light Façades Living laboratories Construction chemicals Performance Solar 3.0 3D printed structures Innovative coated glass Open innovation De-construct Design Produce Use and re-use Capital Markets Day - 6 October 2021 118
Slide 120: Off-site design platform and Solar 3.0
Innovative solutions Impact Economic customization combining Off-site design prefabrication with customer choice platform Pre-manufactured value1 to Design platform for enhance productivity manufacturing customizable prefabricated solutions Net-zero operational carbon and user comfort capable design
Slide 121: ETICS on light frame façades and 3D printing
Innovative solutions Impact ETICS1 on light Lighter enabling faster and safer construction than concrete walls2 frame façades Systems combining High Less embedded CO2 than Performance Solutions & concrete solutions Construction businesses Rapid deployment dedicated to meeting the needs of fast urban
Slide 122: Living laboratories and innovative coated glass
Innovative solutions Impact Living Increase in employee productivity laboratories Better concentration with Using building science for 31% acoustics strategy1 living spaces (construction & mobility) Higher employee energy levels when 32% exposed to outside views1 Partnering to offer cutting edge des
Slide 123: Construction chemicals and open innovation
Innovative solutions Impact Construction 46% Less CO2 than comparable products chemicals Mortar adhesive reducing 28% Less water than comparable products CO2 and need for natural resources Less raw materials than 25% comparable products Open innovation 100% Re-usable modular interior walls Worldwid
Slide 124: Customer proximity, building science, transversal technologies
Transversal Customer proximity Building science Open innovation technologies 10+ years of research into the Transversal capabilities Emphasis on specialty impact of environmental Through our partnerships materials, sustainability conditions on user and ventures and digital experience 20+ global plat
Slide 125: Robust innovation platform
Strong drivers Robust innovation platform to make it happen Recognized TOP 100 • New organization unlocks GLOBAL INNOVATOR1 customer-centric innovation • Move from PRODUCTS to SOLUTIONS 400 patents filed every year • Accelerate time to market & optimize return on innovation 1 OUT OF 4 PRODUCTS sold
Slide 126: Innovation key takeaways
Key takeaways Sustainable innovation is a driver of growth and impact for Saint-Gobain Our innovation model is geared towards customer centricity Innovation fuels our transition from products to solutions Capital Markets Day - 6 October 2021 125
Slide 127: Financial performance
Capital Markets Day FINANCIAL PERFORMANCE Sreedhar N. Chief Financial Officer
Slide 128: Free cash flow growth and capital allocation
Accelerating growth in 01 free cash flow generation 02 Disciplined capital allocation Capital Markets Day - 6 October 2021 127
Slide 129: 2021-2025 financial targets
Organic sales growth Grow and outperform Accelerated Profit & Cash Operating margin Double-digit margin ambition Generation FCF conversion Nurture cash culture Invest in growing markets, value creative acquisitions, Disciplined ROCE Capital fix or divest underperforming businesses Allocation Net deb
Slide 130: Accelerating growth in free cash flow generation
Accelerating growth in Disciplined 01 free cash flow generation 02 capital allocation Capital Markets Day - 6 October 2021 129
Slide 131: Free cash flow and conversion rate
Free Cash Flow (in €bn) and conversion rate (as a % of EBITDA) 3.5 100 3.0 90 3.0 Higher organic growth 80 2.5 70 Increased operating income 2.0 1.9 81%* 60 81%* 50 1.5 Reduced non-operating costs 1.2 40 30 1.0 44% 44% Optimized maintenance capex and working 20 0.5 31% 31% capital 10 0.0 0 2018 2019
Slide 132: Operating margin target
Operating margin as a % of sales 9-11% Volume growth leverage 10.4% 7.7% 9.5%* Positive price-cost spread and mix premium Operational excellence Portfolio rotation 2018 Last 12-month Target at end-June 2021 2021-2025 High Performance Solutions 13-14% Best in class operating margin with similar ROCE
Slide 133: Reduction of non-operating costs
Non-operating costs in €m 462 421 342 Decrease in restructuring costs Litigation, prevention programs & compliance trainings 2018 2019 2020 Litigations & prevention Restructuring costs Target a reduction of non-operating costs to ~€250m on average Capital Markets Day - 6 October 2021 132
Slide 134: Total capex
Total capex in €bn as a % of sales 1.9 1.8 Maintenance, IT, digital and CO2 capex: ~2.5% of sales 1.6 Footprint & cost optimization Maintenance Predictive maintenance capex 3.0% 3.0% Growth capex: 1 to 2% of sales 2.3% Asia and Americas, renovation market in Europe, high potential global markets Gro
Slide 135: Quality of working capital
Operating working capital (in days of sales) Focus on quality of working capital 29 27 Faster rotation of inventory 23* Reduction in overdue receivables Optimize the payment terms based on local benchmarks Right level of stock to serve the customers 2018 2019 2020 Target operating working capital: <
Slide 136: Disciplined capital allocation
Accelerating growth in 01 free cash flow generation 02 Disciplined capital allocation Capital Markets Day - 6 October 2021 135
Slide 137: Portfolio management examples
Glass examples Distribution examples Grow & Invest India, Mexico France, Nordics Restructure & Optimize Closure of Spanish plant 11% of outlets closed in the UK Divest Hangkuk Glass Korea Germany, Netherlands, Spain CEOs accountable for value creation from all assets Capital Markets Day - 6 October
Slide 138: Cash allocation 2016-2020 and 2021-2025
2016-2020 cash allocation 2021-2025 in €bn Free Cash Flow Accelerated growth in free cash flow generation with +9.4 >50% conversion on average vs ~40% in the past Growth capex -2.5 1 to 2% of sales (IRR hurdle rate >20%) Dividends -2.8 30% to 50% payout Share buybacks* -1.3 €2bn by 2025 Acquisitions
Slide 139: Net debt / EBITDA and credit rating
Before IFRS 16 After IFRS 16 2.1 2.4 1.8 2.2 1.6 Net debt / 1.1 EBITDA 2018 2019 2020 2018 2019 2020 Net debt / EBITDA target range 1.0 to 1.5 1.5 to 2.0 Credit rating BBB or BBB+ (S&P), Baa2 or Baa1 (Moody’s) Capital Markets Day - 6 October 2021 138
Slide 140: Attractive shareholder returns
30-50% dividend payout as a % of recurring net income Accelerating Free Cash Flow Generation Payment in cash Focus on growth and profitability Targeting sustainable growth in the Attractive Disciplined Capital Allocation dividend over the 2021-2025 period Shareholder Invest in growing markets Return
Slide 141: Conclusion
Capital Markets Day CONCLUSION Benoit Bazin Chief Executive Officer
Slide 142: 2021-2025 targets summary
100 score on internal ESG index • By 2030, starting from 50 basis in 2017 >75% sustainable sales • Capital allocation to steer sustainable sales Organic sales growth • Versus ~1.5% organic growth in past years Operating margin • Versus ~7% operating margin in past years ROCE • Versus ~10% ROCE in pa
Slide 143: Shareholder value creation with ESG leadership
Solution-driven & Worldwide leader in Multi-national business innovative leader steering light & sustainable governance & culture of structural market shifts construction performance Shareholder value creation with ESG leadership Capital Markets Day - 6 October 2021 142
Slide 144: Thank you
/ GROWsz. IMPACT THANK YOU /
Slide 145: Forward-looking statements disclaimer
ENGLISH 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
Slide 146: 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 half-year perio
Slide 147: Appendix
Capital Markets Day APPENDIX
Slide 148: 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 Capital Markets Day - 6 October 2021 147
Slide 149: 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 150: 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 151: 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 152: 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