Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Investor Presentation (January 2019)
30 slides from Compagnie De Saint-gobain Sa's investor presentation, January 2019
Slide 1: Accelerating the Transformation of the Group
ACCELERATING THE TRANSFORMATION OF THE GROUP
Slide 2: Acceleration of portfolio rotation, new organization, profitability targets
ACCELERATION OF PORTFOLIO ROTATION >€3bn sales disposal program well underway NEW ORGANIZATION Closer to the markets + more agile + leaner ACCELERATED PATH TO NORMATIVE PROFITABILITY TARGETS €250m new savings in addition to the existing program >100 bps margin improvement in total than
Slide 3: Transform & Grow
0 q TRANSFORM *! 2 GROW
Slide 4: An active and value creating portfolio management
An active and value creating A leaner and more portfolio agile organization management 4/
Slide 5: An active and value creating portfolio
On track to deliver the objective of >€3bn sales disposed by the end of 2019 with €1bn of proceeds and ~40 bps impact on operating margin More than 10 business units targeted for divestment Criteria: standalone value, synergies with Saint- An active and Gobain, timing value creating A renewed, l
Slide 6: Continuation of our successful acquisition policy
Continuation of our successful acquisition policy > €500m per year over 2017-2020 Clear value creation threshold An active and ROCE > WACC by year 3 value creating AExcellent renewed, recent track record leaner portfolio ~100 acquisitions 2013-2017 and more agile management <6 x EBITDA a
Slide 7: A leaner and more agile organization
An active and value creating A leaner and more portfolio agile organization management 7/
Slide 8: More aligned with its markets, more agile, more synergistic
… more aligned with its markets … more agile … more synergistic 8/
Slide 9: More aligned with its markets
… more aligned with its markets … more agile … more synergistic 9/
Slide 10: New organization: 4 regions and High Performance Solutions
4 Regions in charge of businesses serving local markets Distribution, Construction Products, Architectural Glass A High Performance Solutions unit in charge of businesses serving worldwide markets High-Performance Materials, Automotive Glass 10 /
Slide 11: Regional organization is efficient way to exploit unique assets
Products and services travel only short distances and are supplied locally Ultra-quick reactivity & logistics are essential to success In-depth knowledge of customer (architects, contractors, applicators, distributors, end-users…) and of local market specifics is a must Digital is breaking t
Slide 12: Market organization for High Performance Solutions
Products and services are of high unit value and can travel long distances Mobility Life Science Added value based on co-innovation with customer: tailor-made technological solutions Intimacy with the application and with the customer is key – digital is reinforcing this need and opening new o
Slide 13: H1-2018 sales by business and geographical area
Sales by business Sales by geographical area 4% 12% 18% 25% 13% 20% 31% 35% 42% High Performance Solutions France Northern Europe Region Other Western Europe Southern Europe – MEA Region Emerging markets and Asia Americas Region North America Asia-Pacific Region 13 / H1-2018 figures
Slide 14: H1-2018 operating income by business and area
OI by business OI by geographical area 6% 13% 14% 21% 36% 33% 19% 33% 25% High Performance Solutions France Northern Europe Region Other Western Europe Southern Europe – MEA Region Emerging markets and Asia Americas Region North America Asia-Pacific Region 14 / H1-2018 figures
Slide 15: New organization breakdown and Industry/Distribution split
Industry / Distribution breakdown New organization breakdown in European Regions Sales and operating income (%) Asia-Pacific High Performance Northern Europe and Southern Europe & MEA +0.6% / OI 9.1% Solutions Americas +7.6% / OI 14.3% 4% +9.8% / OI 7.9% 12% 18% 32% Industry 61% Southern Europe MEA
Slide 16: More agile
… more aligned with its markets … more agile … more synergistic 16 /
Slide 17: P&L business units
P&L business units (countries or businesses) P&L business units (countries or businesses) TODAY On 01/01/2019 17 /
Slide 18: Quick decision making and simplified management
Quick decision making → From 3 levels of approval to 1 for most decisions Business models adapted to market / country specifics → From “one size fits all” management to “tailor made” management Reduced management structure → From a matrix to a simplified and direct line of management 18 /
Slide 19: New executive leadership team
Claire PEDINI SREEDHAR N. Benoit BAZIN Antoine VIGNIAL Pierre-André de CHALENDAR Senior Vice-President Chief Financial Officer Chief Operating Officer Corporate Secretary in charge of Chairman and Chief Executive Officer Corporate Social Responsibility Human Resources and Digital Transformation Laur
Slide 20: More synergistic
… more aligned with its markets … more agile … more synergistic 20 /
Slide 21: For our customers: same offer plus much more
For our customers: the same Saint-Gobain offer … Strong brands Strict arm’s length principle between industry and distribution businesses … plus much more Better services optimized logistics and digital services A better offer market knowledge, innovation capability, Saint-Gobain transversal sol
Slide 22: Synergies between our local businesses
Leverage the unique local density of our businesses across the full Saint-Gobain portfolio Seize growth opportunities while offering a seamless customer journey ILLUSTRATION: SYNERGIES BETWEEN OUR LOCAL BUSINESSES UK: Saint-Gobain prefab frame Finland: a unique customer France: saint-gobain.fr, leve
Slide 23: Synergies between our global businesses
Better address our global markets to develop cross-selling Leverage our global reach to follow our customers worldwide ILLUSTRATION: SYNERGIES BETWEEN OUR GLOBAL BUSINESSES Glass products from Sekurit, Bearings and Seals Glass cockpit windows and Radomes Adhesives, Abrasives and Tapes Synergies in d
Slide 24: A central organization for certain key functions
A central organization for certain key functions… Industrial Performance … to achieve selected identified goals Operational benchmarks & standards, supply chain, excellence programs & Critical mass Industry 4.0, strategic investments Marketing & Development Expertise Strategic product management & S
Slide 25: Successful transfers and collaborations in R&D
ILLUSTRATION: SUCCESSFUL TRANSFERS AND COLLABORATIONS BETWEEN BUSINESSES IN R&D Fire-resistant plasterboard developed Sage Glass@ Electrochromic Glazing Transversal Program on acoustics: External Thermal Insulation thanks to Ceramics expertise in first developed by Sekurit for Ferrari Insulation, Mo
Slide 26: New savings program: €250m by 2021
New program: €250m by 2021 Levers: Streamlining of the central organization Synergies between businesses within countries: e.g. logistics, back office… 250 Reduction of SG&A and fixed costs 120 Accelerated decision making and 50 empowerment Accelerated implementation starting 1/1/2019 2019 2
Slide 27: Substantial growth acceleration: >100 bps margin by 2021
An active and value creating A leaner and more portfolio agile organization management SUBSTANTIAL GROWTH ACCELERATION >100 BPS OF ADDITIONAL OPERATING MARGIN BY 2021 27 /
Slide 28: Transformation timeline
July November January December December 2018 2018 2019 2019 2020 Initial Details of the New Disposals target Transformation fully announcement organization organization reached implemented disclosed in place > €3bn sales >100 bps profitability divested impact in 2021 28 /
Slide 29: Acceleration of portfolio rotation, new organization, profitability targets
ACCELERATION OF PORTFOLIO ROTATION >€3bn sales disposal program well underway NEW ORGANIZATION Closer to the markets + more agile + leaner ACCELERATED PATH TO NORMATIVE PROFITABILITY TARGETS €250m new savings in addition to the existing program >100 bps margin improvement in total than
Slide 30: Transform & Grow
0 q TRANSFORM *! 2 GROW