Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Q1 2021 Earnings Presentation
66 slides from Compagnie De Saint-gobain Sa's earnings presentation, 2021
Slide 1: Recent Results and Outlook
SAINT-GOBAIN nN o nN 4 RECENT RESULTS AND OUTLOOK F 880.00 : os sama a AAA
Slide 2: Agenda
01 FIRST-QUARTER 2021 SALES 02 2020 HIGHLIGHTS 03 2020 ACHIEVEMENTS 04 2020 RESULTS 05 STRATEGY 2
Slide 3: Record organic growth in Q1 2021
Record organic growth in Q1 2021 with a very good start to the year: up 14.3% on Q1 2020 and up 9.0% on Q1 2019 Strong volume growth, up 11.7% on Q1 2020 and up 5.8% on Q1 2019, reflecting good momentum on underlying markets and market share gains Acceleration in the price increase to 2.6% on Q1 202
Slide 4: Q1 2021 sales change
2021/2020 2021/2019 +14.3% +9.0% like-for-like like-for-like +11.7% +10.9% Exchange rates: depreciation of the US dollar, the Brazilian real and other emerging country currencies +2.6% Structure: acquisition of Continental +0.4% Building Products Q1 2021 / Q1 2019: organic growth 9,363 -3.8% 10,379
Slide 5: Quarterly like-for-like growth: prices and volumes
H1/H1: -12.3% H2/H2: +4.8% +14.3% Prices Volumes +6.4% +11.7% +3.2% +4.6% +0.6% +0.2% +2.3% +1.8% +2.6% +0.9% Acceleration in the price increase in a -5.5% more inflationary cost environment -4.9% -19.4% Strong volume growth -19.2% Q1-2020/ Q2-2020/ Q3-2020/ Q4-2020/ Q1-2021/ Q1-2019 Q2-2019 Q3-2019
Slide 6: Q1 sales change: High Performance Solutions
2021/2020 2021/2019 +11.8% +2.7% like-for-like like-for-like +11.4% +5.8% +0.3% +0.4% -6.3% 1,712 1,811 Q1-2020 sales Exchange Structure Prices Volumes Q1-2021 sales rates Mobility Other ind. Change in sales on a like- 2021/2020 +10.3% +12.6% for-like basis 2021/2019 -1.2% +5.2% 6/
Slide 7: Q1 sales change: Northern Europe
2021/2020 2021/2019 +5.1% +4.8% like-for-like like-for-like +2.8% +5.2% +2.3% +0.3% -0.2% 3,219 3,387 Q1-2020 sales Exchange Structure Prices Volumes Q1-2021 sales rates Nordics UK Germany Change in sales on a like- 2021/2020 +2.0% +9.2% +3.5% for-like basis 2021/2019 +6.4% -0.3% +4.5% 7/
Slide 8: Q1 sales change: Southern Europe
2021/2020 2021/2019 +19.7% +9.5% like-for-like like-for-like +17.8% +18.2% +1.9% -0.8% -0.7% 2,983 3,526 Q1-2020 sales Exchange Structure Prices Volumes Q1-2021 sales rates France Spain-Italy Change in sales on a like- 2021/2020 +21.8% +13.5% for-like basis 2021/2019 +10.7% +2.2% 8/
Slide 9: Q1 sales change: Americas
2021/2020 2021/2019 +22.3% +23.9% like-for-like like-for-like +15.3% +10.4% +7.0% +3.1% -15.0% 1,370 1,512 Q1-2020 sales Exchange Structure Prices Volumes Q1-2021 sales rates North America Latin America Change in sales on a like- 2021/2020 +17.5% +34.8% for-like basis 2021/2019 +19.5% +33.0% 9/
Slide 10: Q1 sales change: Asia-Pacific
2021/2020 2021/2019 +31.8% +15.4% like-for-like like-for-like +29.2% +23.7% +2.6% -7.9% -0.2% 337 417 Q1-2020 sales Exchange Structure Prices Volumes Q1-2021 sales rates 10 /
Slide 11: 2021 outlook by segment
High Performance Solutions: continued sequential improvement in industrial markets. Businesses related to customer investment should rally steadily during the year, although are expected to remain down on the good level recorded in 2018 Northern Europe: continued outperformance in construction and s
Slide 12: 2021 outlook: profitable growth and margin
Improvement in the Group’s profitable growth profile: continuation of its portfolio optimization (divestments and acquisitions) outperformance versus the market thanks to its range of integrated solutions strategy of differentiation and innovation to develop solutions for sustainability and performa
Slide 13: Agenda
01 FIRST-QUARTER 2021 SALES 02 2020 HIGHLIGHTS 03 2020 ACHIEVEMENTS 04 2020 RESULTS 05 STRATEGY 13
Slide 14: 2020 key figures
2020 H2-2020 actual like-for-like actual like-for-like Sales -10.4% -3.8% -2.5% +4.8% €38.1bn Operating income -15.8% -12.3% +15.8% +22.4% €2,855m Op. margin 7.5%, -50 bps Op. margin 10.0%, +160 bps actual actual EBITDA -9.3% +13.3% €4,415m EBITDA margin 11.6%, +20 bps EBITDA margin 13.7%, +200 bps
Slide 15: Responsible management of the health crisis
Responsible management of the health crisis with regard to all of the Group’s stakeholders Solid achievements in ESG, with new commitments for 2030: 2030 CO2 targets validated by the SBT* initiative, reduction of 4% in our CO2 emissions compared to 2019, internal carbon price increased to €50/t 10Mt
Slide 16: 2020 results highlights
Strong 4.8% organic growth in H2, accelerating to 6.4% in Q4 Sharp rebound in operating income in H2 2020, up 22.4% like-for-like, with a record operating margin of 10% (up 160 bps versus H2 2019) Record recurring net income in H2, up 23.4% to €1,198 million Increase of 20 bps in EBITDA margin to 11
Slide 17: Agenda
01 FIRST-QUARTER 2021 SALES 02 2020 HIGHLIGHTS 03 2020 ACHIEVEMENTS 04 2020 RESULTS 05 STRATEGY 17
Slide 18: Health protection, financial strength, cost savings
1 2 3 Health Financial Cost protection strength savings Barrier gestures in our Strong balance sheet €250m “Transform & Grow” plants, offices, distribution savings delivered Selective Capex outlets Fast action on several Best-in-class cash New ways of working initiatives for additional generation an
Slide 19: Actions for our communities
+3pt -22% vs. 2019 vs. 2017 Saint-Gobain employee Scope 1 + 2 CO2 Avoided extractions Actions for our engagement emissions of raw material communities1 Index2 vs. 20193 extracted -0.4 vs. 2019 Group accident frequency rate TRAR +1.2pt +€20 vs. 2019 vs. 2019 Production lines Revised internal Reductio
Slide 20: Thank you to all our teams
THANK YOU TO ALL OUR TEAMS FOR STANDING UNITED & SHOWING SOLIDARITY THROUGHOUT THE CRISIS 20 / 2020 RESULTS PRESENTATION
Slide 21: 13 acquisitions in 2020 and growth capex
Growth Capex deployment 13 acquisitions in 2020 in the context of the pandemic CONSOLIDATION OF LEADERSHIP POSITIONS TO BETTER SERVE OUR CUSTOMERS TECHNOLOGICAL NICHES Logistics center in New Life Sciences Technical textiles capacity Digital services in Nordics Distribution capacities in the USA in
Slide 22: Making Saint-Gobain stronger
Making Saint-Gobain stronger 22 / 2020 RESULTS PRESENTATION
Slide 23: Accountability and ownership
LEAN, AGILE, PERFORMANCE-DRIVEN CUSTOMER CENTRIC Accountability • Incentivized country / market CEOs • 100% of bonus aligned to country / market performance (operating income, cash flow, return) 90% Ceilings & Acoustics business in Brazil, Application Saint-Gobain Solutions in France • One line of c
Slide 24: Cost savings delivered one year ahead
€130m Streamlined organizations €120m Asia-Pacific 50 Americas High Performance Solutions Leaner central and support H2 85 Europe & central functions functions 80 Country/market synergies H1 35 & optimization 2019 2020 Total Cost savings delivered 1 year ahead of schedule 24 / 2020 RESULTS PRESENTAT
Slide 25: Divestments and acquisitions since T&G launch
€4.6bn sales divested (closed or signed) €740m sales acquired since T&G launch since T&G launch • 26 transactions of which 7 divestments closed in 2020 • 31 transactions of which 13 acquisitions closed in 2020 • €1.3bn sales closed or signed in 2020 • Driven by country CEO portfolio reviews Consolid
Slide 26: Continental Building Products integration
EBITDA incl. synergies Integration ahead of plan, exceeding expectations… Above US$ 110m objective • Management and teams successfully integrated, synergies delivered faster than expected despite operational impact of the Covid crisis: US$ 20m 23% 26% 21% • Value creation on track for Year 3 H2-2019
Slide 27: Operating margin reconciliation H2-2018 to H2-2020
Operating margin reconciliation H2-2018 8.1% Restated operating income margin post-IFRS 16 at T&G launch Portfolio +55 bps €3.4bn sales divested, profitable acquisitions for €740m sales Cost structure +60 bps T&G savings Exceptional +50 bps Price-cost spread, discretionary savings, net of additional
Slide 28: Agenda
01 FIRST-QUARTER 2021 SALES 02 2020 HIGHLIGHTS 03 2020 ACHIEVEMENTS 04 2020 RESULTS A. GROUP B. SEGMENTS 05 STRATEGY 28
Slide 29: H2 and full-year 2020 sales change
+3.4% -2.5% +1.4% H2 -4.1% -3.2% Exchange rates: depreciation of the 20,896 +4.8% 20,364 Brazilian real and other emerging (€m) like-for-like (€m) country currencies, the US dollar and the Norwegian krone 41 761 H2-2019 Exchange Structure Prices Volumes H2-2020 sales rates sales Structure: divestmen
Slide 30: Quarterly prices and volumes 2020
H1/H1: -12.3% H2/H2: +4.8% +6.4% Prices Volumes +3.2% +4.6% +0.6% +0.2% +2.3% +0.9% +1.8% -5.5% Upward trends in sales prices -4.9% generating a positive price-cost spread -19.4% Good momentum in volumes, reinforced in the post-pandemic period by increased demand on the renovation market -19.2% Q1-2
Slide 31: Operating income and price-cost spread
-15.8% actual 3,390 2,855 Sharp rebound in H2 of 22.4% like-for-like; record operating margin of 10% (up 160 bps versus H2 2019) Positive price-cost spread ~ +€160m, of which €110m in H2 Strong action on costs, with €690m in cost savings in 2020 8.0% 7.5% 2019 2020 1,752 2,028 +15.8% H2 8.4% 10.0% +
Slide 32: Structural savings and operational excellence
“Transform & Grow” structural savings Operational excellence program Savings related to Covid crisis €130m in 2020, to compensate for cost inflation €240m in 2020, of which €80m in H2 on top of €120m in 2019 €320m in 2020 (vs. €310m in 2019) €130m €320m €240m H2 50 Reduction in discretionary 110 spe
Slide 33: Operating income by half-year
2,028 1,693 1,752 1,638 1,514 827 7.3% 7.6% 4.7% 8.1% 8.4% 10.0% H1-2018 H1-2019 H1-2020 H2-2018 H2-2019 H2-2020 2018 restated for IFRS 16 33 / 2020 RESULTS PRESENTATION
Slide 34: Operating income to EBITDA
2020/ H2-2020/ 2019 2020 €m 2019 H2-2019 Operating income 3,390 2,855 -15.8% +15.8% Non-operating costs (421) (342) Disposal gains (losses) and impacts resulting (13) (58) from changes in Group structure Asset write-downs and other (403) (1,023) Business income 2,553 1,432 -43.9% +13.9% Operating in
Slide 35: Recurring net income and EPS
2020/ H2-2020/ 2019 2020 €m 2019 H2-2019 Business income 2,553 1,432 Net financial expense (496) (453) Dividends received from investments (Sika) 28 34 Income tax (631) (526) Net attributable income 1,406 456 Recurring net income 1,915 1,470 -23.2% +23.4% Recurring EPS (€) 3.53 2.74 -22.4% 35 / 2020
Slide 36: Free cash flow
3,740 -453 3,044 +64% -526 +1,148 -865 FCF conversion: 81% 2020 Finance costs Tax Capital expenditure Change in WCR Free cash flow EBITDA* excl. Sika excl. additional over a 12-month dividends capacity** period 2019: €4,188m FCF conversion: 44% €1,857m * EBITDA less depreciation of right-of-use asse
Slide 37: Net debt and shareholders' equity
19.8 20.0 18.2 18.4 Net debt Shareholders’ equity 10.5 7.3 7.2* 4.1 12-2019 12-2020 12-2019 12-2020 before IFRS 16** after IFRS 16 Net debt/shareholders’ equity 36% 22% 53% 39% Net debt/EBITDA 1.8 1.1 2.2 1.6 * €0.15bn reduction in net debt at December 31, 2020 relating to debt carried by entities i
Slide 38: ROI and ROCE
18.7% 18.4% 21.8% 22.0% 11.1% 10.4% 11.9% 11.3% 2019 2019 2020 2020 ROI ROCE ROI ROCE before IFRS 16 after IFRS 16 38 / 2020 RESULTS PRESENTATION
Slide 39: Agenda
01 FIRST-QUARTER 2021 SALES 02 2020 HIGHLIGHTS 03 2020 ACHIEVEMENTS 04 2020 RESULTS A. GROUP B. SEGMENTS 05 STRATEGY 39
Slide 40: High Performance Solutions: sales and operating income
Sales (€m) Operating income (€m) in H2 and margin (%) -10.1% -1.9% like-for-like like-for-like +0.5% 966 613 12.7% 9.4% -3.4% -0.2% -13.7% actual -10.6% o/w*: 7,584 6,544 Mobility (7%): -13.3% 13.0% 12.5% 7.4% 11.1% Other industries (10%): -7.9% 2019 sales Exchange Structure Prices Volumes 2020 sale
Slide 41: Northern Europe: sales and operating income
Sales (€m) Operating income (€m) in H2 and margin (%) -3.1% +2.0% like-for-like like-for-like -1.8% 946 788 -14.9% actual 6.3% 6.2% +0.3% -10.0% -3.4% 15,058 o/w*: 12,807 Nordics (14%): +2.8% UK (9%): -13.2% Germany (3%): -2.3% 6.0% 6.6% 4.2% 7.9% 2019 sales Exchange Structure Prices Volumes 2020 sa
Slide 42: Southern Europe: sales and operating income
Sales (€m) Operating income (€m) in H2 and margin (%) -4.9% +6.7% like-for-like like-for-like +1.1% 736 644 -0.5% 5.4% 5.2% -8.6% -3.2% actual -6.0% 13,624 o/w*: 12,454 France (24%): -4.7% Spain-Italy (4%): -8.5% 5.0% 5.8% 1.7% 8.0% 2019 sales Exchange Structure Prices Volumes 2020 sales H1-19 H2-19
Slide 43: Americas: sales and operating income
Sales (€m) Operating income (€m) in H2 and margin (%) +4.7% +15.7% like-for-like like-for-like +2.6% actual +2.4% 656 +2.3% 562 +7.2% -9.3% 5,555 o/w*: 5,697 10.1% 11.5% North America (11%): +2.8% Latin America (4%): +8.8% 2019 sales Exchange Structure Prices Volumes 2020 sales 2019 2020 rates * Sal
Slide 44: Asia-Pacific: sales and operating income
Sales (€m) Operating income (€m) in H2 and margin (%) -7.1% +2.1% like-for-like like-for-like -3.1% -19.5% 200 actual 163 -9.3% -0.8% -6.3% 1,888 1,520 10.6% 10.7% 2019 sales Exchange Structure Prices Volumes 2020 sales 2019 2020 rates 44 / 2020 RESULTS PRESENTATION
Slide 45: Agenda
01 FIRST-QUARTER 2021 SALES 02 2020 HIGHLIGHTS 03 2020 ACHIEVEMENTS 04 2020 RESULTS 05 STRATEGY 45
Slide 46: The world in 2021 and beyond
THE WORLD IN 2021 AND BEYOND More local More sustainable More digital >30% 58% -40% of the EU Recovery think that decline in FDI* Plan dedicated to construction will climate action become more digital** * Foreign Direct Investments in 2020. Source: UNCTAD, June 2020 ** % of European building materia
Slide 47: Net-zero carbon by 2050
NET-ZERO CARBON BY 2050 A- rating 47 / 2020 RESULTS PRESENTATION
Slide 48: Our achievements: ethics, governance, health & safety
Our achievements Ethics Compliance New managers trained in our Managers trained in anti-corruption Principles of Conduct & Action New whistleblowing line Governance Responsible purchasing Creation of a CSR Board Committee Contracts with partner suppliers including Independent directors on Board the
Slide 49: Our achievements: products and operations
Our achievements Contribute through our Products & Solutions Improve our operations & supply chain Worldwide leader for EPD1 in Construction CO2 emissions Water discharge ~1,300 verified EPD in 33 countries Scope 1+2: -4% vs. 2019 in real terms vs. 2019 kgCO2/€ of sales Electricity from TCFD climate
Slide 50: Our achievements: diversity and employees
Our achievements Increase diversity Engage our employees Diversity Index Engagement Index Women managers Senior managers Signed agreements vs. 17.5% in 2010 vs. 5% in 2010 Employees involved in Women on ExCo Women on Board formulation of purpose Women on average on all our Minimum share of women in
Slide 51: Solutions for sustainability and performance
For our customers: solutions for sustainability & performance Insulation systems Flooring solutions -1,200Mt Glazing solutions for mobility Refractories for high temp. CO2eq avoided emissions thanks to our insulation solutions Lightweight façade solutions Roofing solutions sold in 1 year1 Technical
Slide 52: End-to-end solutions: energy efficiency, light construction
END-TO-END ENERGY LIGHT SOLUTIONS EFFICIENCY CONSTRUCTION Sustainability & Performance 52 / 2020 RESULTS PRESENTATION
Slide 53: One-stop-shop for renovation
Energy-efficient renovation of a single-family house in France 100% solutions manufactured or distributed by Saint-Gobain +136% €600bn “Energy renovation” Potential maximum yearly key words web Annual EU spend on renovation3 -88 % * energy expense reduction 1 Mechanical ventilation search1 2 Glass w
Slide 54: Renovation of a hospital
Renovation of a hospital 100% solutions manufactured or distributed by Saint-Gobain 1 Air quality -20% * Energy consumption 2x 2/3 Expected increase Share of world * Example of Montfermeil renovation in France - 2 also includes savings enabled by consumption in people over 60 by population in urban
Slide 55: Electric mobility solutions
Saint-Gobain electric mobility solutions Well-being & energy savings Average car weight reduction -7kg thanks to Saint-Gobain solutions 1 Lightweight glazing x3 ~15% Tinted glass & repair Contribution of 2 2 Passenger transport transport sector to increase 2015-20501 world CO2 emissions2 1 3 Thermal
Slide 56: Our purpose
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Slide 57: 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
Slide 58: Appendix
SAINT-GOBAIN APPENDIX F 880.00 : os sama a AAA
Slide 59: Q1 sales change: Southern Europe, Middle East & Africa
2021/2020 2021/2019 +13.8% +9.0% like-for-like like-for-like +11.7% +12.5% +0.4% +2.1% -1.7% 3,926 4,416 Q1-2020 sales Exchange Structure Prices Volumes Q1-2021 sales rates 59 /
Slide 60: Southern Europe, ME & Africa: sales and operating income
Sales (€m) Operating income (€m) in H2 and margin (%) -3.2% +5.2% like-for-like like-for-like 749 680 -1.0% 3.9% 4.2% -14.0% +1.0% actual -9.8% -4.2% 19,006 16,347 3.6% 4.4% 1.8% 6.2% 2019 sales Exchange Structure Prices Volumes 2020 sales H1-19 H2-19 H1-20 H2-20 rates 60 / 2020 RESULTS PRESENTATION
Slide 61: Breakdown of operating income and industrial assets
Breakdown of 2020 Industrial assets Operating income at December 31, 2020 Asia-Pacific Asia-Pacific 6% HPS 6% HPS 21% 22% Americas Americas 16% 23% 28% 26% Southern 30% 22% Southern Europe - Northern Europe - ME & Africa ME & Africa Europe Northern Europe 61 / 2020 RESULTS PRESENTATION
Slide 62: 2020 sales and operating income by country
2020 Sales 2020 Operating income Group Group North America France France 15% North America 15% Latin 26% 25% America 6% Asia- Pacific 7% Latin 8% Eastern 7% America 30% Other Western Europe, European Africa & ME 12% countries 39% 10% Asia-Pacific Other Western Eastern Europe, European Africa & ME co
Slide 63: Sales by end market and segment
NEW RESIDENTIAL 1% 7% 7% 5% 2% CONSTRUCTION 22% NEW NON-RESIDENTIAL 1% 4% 3% 1% 1% CONSTRUCTION 10% 1% 21% 22% 9% RENOVATION / INFRAST. 1% 54%** MOBILITY 7% 7% OTHER INDUSTRIES 7% 7% HPS NORTHERN SOUTHERN AMERICAS ASIA-PACIFIC ~17% EUROPE EUROPE - ~15% ~4% * Saint-Gobain estimated end markets ~32% M
Slide 64: ESG indicators
Theme Saint-Gobain indicators 2019 2020 CLIMATE CO2 emissions (Mt) – scope 1+2 10.8 10.4 CO2eq avoided emissions thanks to our insulation solutions sold in 1 year (Mt) 1,200* kgCO2/€ sales 0.25 0.27 E ENERGY Renewable electricity contribution as part of electricity consumption (%) 18.2% 18.9% WATER
Slide 65: 2020 dividend and share buybacks
2020 DIVIDEND (Board’s recommendation to the June 3, Share buybacks 2021 AGM) Reduction in the number of shares €1.33 PER SHARE outstanding to 530 million at end-December Dividend yield at Dec. 31, 2020: 3.5% 2020 versus 542 million at end-December 2019 Payout ratio based on recurring net income: 48
Slide 66: October 6, 2021: new leadership team strategic vision
OCTOBER 6, 2021 Saint-Gobain new leadership team will present its strategic vision and roadmap for profitable growth: Leveraging its solutions for Sustainability and Performance With financial and ESG targets 66 / 2020 RESULTS PRESENTATION