Compagnie De Saint-gobain Sa · EURONEXT:SGO
Compagnie De Saint-gobain Sa — Saint-Gobain — Shareholder Meeting (June 2016)
74 slides from Compagnie De Saint-gobain Sa's shareholder meeting presentation, Jun 2, 2016
Slide 1: General Meeting June 2, 2016
General Meeting June 2, 2016
Slide 2: Saint-Gobain today
Saint-Gobain today Claude Imauven Chief Operating Officer General Meeting, June 2nd, 2016
Slide 3: Saint-Gobain is one of the world's top leading industrial corporations
Saint-Gobain is one of the world’s top leading industrial corporations Operations in 66 countries COUNTR IES 2015 sales of 39 623 M€ 170 000 employees Saint-Gobain en 1904 Saint-Gobain en 1980 Saint-Gobain en 2016 22
Slide 4: A solid development model
A solid development model BUILDING DISTRIBUTION Diversified clientele Depth of the offer for all materials and equipment Consolidation Renovation HABITAT MARKETS INNOVATIVE CONSTRUCTION MATERIALS PRODUCTS Technology Leadership Brands Innovation INDUSTRIAL MARKETS Co-development Emerging countries En
Slide 5: Slide 5
Slide 6: A world-ranking R&D
A world-ranking R&D Product out of 4 1 Thomson Reuters More sold by Saint- Top 100 Global than Gobain did not Innovators exist 5 years ago 2011, 2012, 2013, 2014, and 2015 Chantereine Herzogenrath France Allemagne Northboro Shanghai États-Unis Aubervilliers Chine France Cavaillon France Chennai Inde
Slide 7: Innovate and differentiate for and with our customers
Innovate and differentiate for and with our customers Revolutionize usages Innovate locally Remettre Capivari avec visuel explicite Co-develop 6
Slide 8: Invest in high growth regions
Invest in high growth regions Solar Guard San Diego Weber plant in Wuhan production line 6th Brasilit plant in Float and coater Rio de Janeiro State near Chennai Acquisition of 50 % of the capital Isover plant Automotive bearings plant of Lodhia Gypsum in Tanzania in Saudi Arabia near Jakarta 7
Slide 9: Work alongside projects' influencers with a digital offer
Work alongside projects’ influencers with a digital offer Inform Plan Execute & share Architect Engineering consultant PIM* BIM** Project manager tutorial video Building industry diagnosis calculation tool professional Artisan community informative website simulation tool sharing End client * PIM :
Slide 10: Digital at the heart of the Building Distribution Sector strategy
Digital at the heart of the Building Distribution Sector strategy Omnicanal Big Data Web content & services Outiz – Dahl – Avantage Pro Point P. – a fully omnicanal brand an award winning use of Big Data services for the building industry professionals 9
Slide 11: Aim for the highest operational excellence level
Aim for the highest operational excellence level World class manufacturing Supply chain Digital manufacturing e-auctions Sales force effectiveness e-recruiting 10
Slide 12: A few numbers illustrating our progress
A few numbers illustrating our progress Operational excellence Costs savings in 2015 360 M€ 61% Investment in Industrial assets IM + CP 58% growth regions outside Western Europe* Our progress 2013 2015 in 2015 27% 24% Innovation % of new solutions IM + CP** 2013 2015 Digital Online sales and traffic
Slide 13: Saint-Gobain today
Saint-Gobain today Claude Imauven Chief Operating Officer General Meeting, June 2nd, 2016
Slide 14: Human Resources at Saint-Gobain
Human Resources at Saint-Gobain 14
Slide 15: 170,000 people working for their customers
170,000 PEOPLE WORKING FOR THEIR CUSTOMERS Employees by Sector… Innovative Materials Construction 8% Products NORTH AMERICA 14% 35% WESTERN EUROPE* EASTERN EUROPE 8% 34% 29% United Kingdom 10% 9% 35% Germany 9% FRANCE Scandinavia 7% 25% ASIA AND LATIN OCEANIA AMERICA AFRICA AND 11% 11% MIDDLE EAST
Slide 16: Businesses undergoing rapid change
BUSINESSES UNDERGOING RAPID CHANGE 16
Slide 17: Businesses undergoing rapid change
BUSINESSES UNDERGOING RAPID CHANGE 80,000 people in daily contact with our customers
Slide 18: A group undergoing rapid transformation
A GROUP UNDERGOING RAPID TRANSFORMATION 27,500 recruits worldwide in 2015 75 percent on open-term contracts 33 percent aged under 26 Acquisition of new skills and support for geographic growth
Slide 19: Promoting workplace health and safety
PROMOTING WORKPLACE HEALTH AND SAFETY TF2 - 2010-2015 Saint-Gobain Employees & Temporary Employees 15.1 Innovative Materials Employees, temporary employees, Construction Products sub-contractors as well as users and Building Distribution Group neighboring communities 9.9 Rollout of our Health an
Slide 20: Our teams' commitment
DEVELOP AN ENTREPRENEURIAL AND OPEN CULTURE CONDUCIVE TO OUR TEAMS’ COMMITMENT Develop our community of united entrepreneurs The first of our Principles: a non-negotiable commitment 84 percent of employees received a training in 2015 26 hrs training per employee in 2015. 13 percent more c/w 2014
Slide 21: Increasing our labor relations
INCREASING OUR LABOR RELATIONS Productive dialogue at the local level ● Almost 1,700 agreements signed in 2015, of which 200 in France Other 0.8% North America 0.7% Salaries South America Other agreements 9,1% 16,3% France Diversity 11,5% 4,1% 34,8% Workplace Health & Safety 5,4% 46,6% 4,7% Profes
Slide 22: Encourage mobility and internal promotion
ENCOURAGE MOBILITY AND INTERNAL PROMOTION Encourage employee mobility for mutual enrichment through knowledge of each business’s markets 1,800 managers work outside their home country 1,500 managers changed sector or professional area in 2015
Slide 23: Attract the best talent: the employer brand
ATTRACT THE BEST TALENT: THE EMPLOYER BRAND Anticipate the Group’s needs The high role of social media and digital technology in general
Slide 24: Making the most of the digital shift
MAKING THE MOST OF THE DIGITAL SHIFT Acquire new skills Digital Train our employees Travel Bring about change in working methods
Slide 25: Increase the diversity of our teams
INCREASE THE DIVERSITY OF OUR TEAMS
Slide 26: Increase the diversity of our teams
INCREASE THE DIVERSITY OF OUR TEAMS Promote gender equality (change between 2009 and 2015) 35% 29% 21.4 16.8 % 20% % 12.5% 10% 5% Managers New recruits New senior management Executives recruits
Slide 27: Increase the diversity of our teams
INCREASE THE DIVERSITY OF OUR TEAMS Promote gender equality (change between 2009 and 2015) Passport for Diversity Pursue the internationalization of management (change between 2009 and 2015) ● Percentage of non-French in the top 150 Group executives: 38% to 50% ● Percentage of expats: 54% to 67%
Slide 28: Human Resources at Saint-Gobain
Human Resources at Saint-Gobain 28
Slide 29: 2015 Results
2015 Results General Meeting June 2, 2016
Slide 30: 2015 Key Figures
2015 KEY FIGURES 2015 Figures €39,623m +3.3% Net Sales Sales growth €2,636m +4.5% Operating Income Operating Income growth €1,295m +35.9% Net Income Net Income growth -€2,424m In accordance with IFRS 5, reclassification of Net Debt decrease Verallia, in net income 30
Slide 31: Improved earnings in a contrasted economic climate
IMPROVED EARNINGS IN A CONTRASTED ECONOMIC CLIMATE WESTERN EUROPE Growth dampened by weak trading in France % Change in Sales +0.4% 2015/2014 organic growth €2,636m NORTH AMERICA Growth in construction €2,522m 6.7% markets Downturn of some 6.6% industrial markets ASIA AND EMERGING MARKETS Robust gro
Slide 32: Continue to implement operational priorities in 2015
CONTINUE TO IMPLEMENT OPERATIONAL PRIORITIES IN 2015 +0.3% Sales prices increase, in a deflationary environment €360m Yearly impact of cost-cutting program, calculated on the 2014 cost base €1.35bn Selective capital expenditure, focused primarily on growth capex outside Western Europe €434m R&D expe
Slide 33: 2015, an important year for the optimisation of the business portfolio
2015, AN IMPORTANT YEAR FOR THE OPTIMISATION OF THE BUSINESS PORTFOLIO Sale of Verallia on very good financial terms Disposals representing ~€700m in full-year sales, mainly in Building Distribution Acquisitions representing ~€300m in full-year sales, in line with Group’s strategic goals 33
Slide 34: Significant growth in Innovative Materials
SIGNIFICANT GROWTH IN INNOVATIVE MATERIALS Industrial assets Net Sales Operating Income Organic Growth in % €m and % of sales INNOVATIVE MATERIALS €1,015m 10.5% +2.2% €854m 37% 9.4% 2015 2015/2014 2014 2015 34
Slide 35: Stabilization in Construction Products
STABILIZATION IN CONSTRUCTION PRODUCTS Industrial assets Net Sales Operating Income Organic Growth in % €m and % of sales CONSTRUCTION PRODUCTS €1,020m €1,022m 8.5% 9.0% +0.5% 39% 2015 2015/2014 2014 2015 35
Slide 36: Building Distribution dampened by France
BUILDING DISTRIBUTION DAMPENED BY FRANCE Industrial assets Net Sales Operating Income Organic Growth in % €m and % of sales BUILDING DISTRIBUTION -0.6% €661m 3.5% €603m 3.2% 24% 2015 2015/2014 2014 2015 36
Slide 37: Improved performance driven by Europe (excluding France) and emerging countries
IMPROVED PERFORMANCE DRIVEN BY EUROPE (EXCLUDING FRANCE) AND BY EMERGING COUNTRIES Industrial assets and organic growth Operating Income in €m 28% FRANCE WESTERN EUROPE WESTERN EUROPE excluding FRANCE EXCLUDING 24% FRANCE 984 817 +2.1% FRANCE -4.1% 466 297 15% NORTH AMERICA -2.0% 2014 2015 2014 2015
Slide 38: A strong improvement in net income and EPS
A STRONG IMPROVEMENT IN NET INCOME AND EPS €m and % of sales Recurring Net Income Net Income €1,295m +19.7% €1,165m €973m +35.9% €953m 2014 2015 2014 2015 Recurring EPS: €2.09 (+20.1%) EPS: €2.32 (+36.5%) 10
Slide 39: A profitable group and a sound financial structure
A PROFITABLE GROUP AND A SOUND FINANCIAL STRUCTURE €2,321m €2,139m Net debt Cash Flow +8.5% €4.8bn Net Debt 2014 2015 €19.3bn 28 days Shareholders’ Equity 26 days 25% OWCR Gearing Ratio -2 days 1.2 Net Debt/EBITDA 2014 2015 39
Slide 40: A dividend offering a regular, attractive net yield
A DIVIDEND OFFERING A REGULAR, ATTRACTIVE NET YIELD €1.24 per share in cash 3.1% Dividend yield 59% June 6, 2016: ex-date Payout rate based on recurring net income June 8, 2016: payment date 40
Slide 41: 2015 Results
2015 Results General Meeting June 2, 2016
Slide 42: Saint-Gobain Strategy and Perspectives
Saint-Gobain Strategy and Perspectives
Slide 43: Pursue with our strategic axes
Pursue with our strategic axes Operational excellence Innovation & differentiation Geographical expansion 2
Slide 44: Capture the performance improvement potential
Capture the performance improvement potential Costs savings > € 4Bn 2008-10 2011-13 2014-15 2016-18 3
Slide 45: Strengthen our leadership through innovation and differentiation
Strengthen our leadership through innovation and differentiation New solutions ratio* 30% 27% 24% 2013 2015 2018 * IM + CP, share of sales related to products and solutions less than five years old and considered as new by our customers 4
Slide 46: Push forward the geographical expansion
Push forward the geographical expansion Industrial assets outside Western Europe* 2013 2015 2018 58% 61% 66% outside Western Europe Western Europe * IM + CP, based on 2013 exchange rates 5
Slide 47: Sika: perfectly matching with Saint-Gobain
Sika : perfectly matching with Saint-Gobain Sika : Saint-Gobain : Additives, joints, Glazing, ceilings, fillers, adhesives, membranes, insulation, steel piping roofing A floor to roof offer 6
Slide 48: Digital reshapes our markets and operations
Digital reshapes our markets and operations Digitalisation of Customer journey Digital factory the HR function 8
Slide 49: Corporate Social Responsibility at the heart of our development model
Corporate Social Responsibility (CSR) at the heart of our development model 11 CSR performance indicators Managers’ training to the Group Behavior and Action Principles Materialize Conformity with the CSR international standards Reduction of CO2 emissions Reduction of environmental incidents
Slide 50: Saint-Gobain, a committed actor of the COP21
Saint-Gobain, a committed actor of the COP21 Signing of the Agreement New York Support to the COP21 Paris Business & Climate Summit Paris April 2016 December 2015 May 2015 10
Slide 51: Act against climate change
Act against climate change Greenhouse gases Internal carbon pricing emitted by Saint- Gobain in 2014 2025 objectives (vs. 2010) -15% ofconsumption energy x90 Avoided emissions -20% CO2 emissions with our solutions sold in 2014 11
Slide 52: Saint-Gobain Strategy and Perspectives
Saint-Gobain Strategy and Perspectives
Slide 53: Report of the Chairman of the Nomination, Remuneration and Governance Committee
Report of Mr. Philippe VARIN, Chairman of the Nomination, Remuneration and Governance Committee on governance and the compensation of Mr. Pierre-André de Chalendar for 2015 submitted to the advisory vote of the shareholders
Slide 54: Board of Directors
BOARD OF DIRECTORS The Board of Directors is comprised (until this General Meeting) of 17 members, including: 7 independent Directors (50%, according to the criteria set by the AFEP-MEDEF Corporate Governance Code for French listed companies) 6 women (40%) 2 employee Directors 1 Director represent
Slide 55: Board of Directors' Committees
BOARD OF DIRECTORS’ COMMITTEES Number of meetings held Attendance rate in 2015 Audit and Risk Committee 75% of independent Directors, including its 5 80% Chairman Nomination, Remuneration and Governance Committee 75% of independent Directors, including its 4 100% Chairman Strategy and Corporate Soci
Slide 56: Changes in the composition of the Board of Directors (1/3)
CHANGES IN THE COMPOSITION OF THE BOARD OF DIRECTORS PROPOSED TO THE GENERAL MEETING (1/3) Proposed renewal of three Directors: • Mr. Bernard GAUTIER Member of the Nomination, Remuneration and Governance Committee (since 2008) Member of the Management Board of Wendel • Mr. Frédéric LEMOINE Member of
Slide 57: Changes in the composition of the Board of Directors (2/3)
CHANGES IN THE COMPOSITION OF THE BOARD OF DIRECTORS PROPOSED TO THE GENERAL MEETING (2/3) Appointment of a new independent Director proposed to the General Meeting: • Mrs. Iêda Gomes YELL, Founding President of Energix Strategic Ltd Mrs. Iêda Gomes YELL is Brazilian and British. She was Chief Execu
Slide 58: Changes in the composition of the Board of Directors (3/3)
CHANGES IN THE COMPOSITION OF THE BOARD OF DIRECTORS PROPOSED TO THE GENERAL MEETING (3/3) Composition of the Board of Directors assuming the appointment of Mrs. Iêda Gomes YELL is approved and the terms of office of the three Directors are renewed by this General Meeting: Independence of 54% of t
Slide 59: Summary of the components of the compensation of the Chairman and CEO
SUMMARY OF THE COMPONENTS OF THE COMPENSATION DUE OR GRANTED TO THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN RESPECT OF FISCAL YEARS 2015 AND 2014 (in euros, before social charges and income tax) Fiscal year 2015 Fiscal year 2014 Fixed compensation 1,100,000 1,100,000 Annual variable compensation 1,2
Slide 60: Summary of the compensation of the Chairman and CEO for fiscal year 2015
SUMMARY OF THE COMPONENTS OF THE COMPENSATION DUE OR GRANTED TO THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN RESPECT OF FISCAL YEAR 2015 32% 28.5% VALUE OF THE 2015 2015 FIXED PERFORMANCE COMPENSATION UNITS ALLOCATION 6.5% 33% 2015 VARIABLE VALUE OF THE 2015 COMPENSATION OPTIONS ALLOCATION COMPENSATI
Slide 61: Fixed and variable compensation of the Chairman and CEO
FIXED AND VARIABLE COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER Fixed compensation: €1,100,000 (unchanged since 2010) Variable compensation: €1,284,067 (+4.65% over 2014) Amount determined based on the achievement rate of quantitative and qualitative objectives fixed by the Board of
Slide 62: Other components of the compensation of the Chairman and CEO
OTHER COMPONENTS OF THE COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER No variable deferred compensation No multi-annual variable compensation No exceptional compensation No attendance fees from Group’s companies Company car 62
Slide 63: 2015 long-term compensation of the Chairman and CEO (1/2)
2015 LONG-TERM COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER (1/2) Common principles governing the stock options and performance units plans Demanding obligations to acquire and/or hold Saint-Gobain shares Prohibition to hedge the risk (until the cessation of his duties as Chairman and
Slide 64: 2015 long-term compensation of the Chairman and CEO (2/2)
2015 LONG-TERM COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER (2/2) from 0 to 50,000, subject to fulfillment of the following cumulative conditions: Stock options (i) a service condition; and (exercisable as (ii) a performance condition, linked to two criteria (internal and external): fr
Slide 65: Compensation for loss of office and non-compete indemnity
COMPENSATION FOR LOSS OF OFFICE AND NON-COMPETE INDEMNITY Mr. Pierre-André de CHALENDAR has resigned from his employment contract in 2010 Approved by the 2014 General Meeting Due in the event of forced departure related to a change of control or strategy Compensation for loss of office Amoun
Slide 66: Supplementary pension plan
SUPPLEMENTARY PENSION PLAN Approved by the 2014 General Meeting Applicable to all employees who joined Compagnie de Saint-Gobain prior to January 1, 1994 (i.e., as of December 31, 2015, 178 retired employees and 34 potential active employees) To benefit from the plan: Service condition : to be
Slide 67: Report of the Chairman of the Nomination, Remuneration and Governance Committee
Report of Mr. Philippe VARIN, Chairman of the Nomination, Remuneration and Governance Committee on governance and the compensation of Mr. Pierre-André de Chalendar for 2015 submitted to the advisory vote of the shareholders
Slide 68: Statutory Auditors' Reports
STATUTORY AUDITORS’ REPORTS
Slide 69: Reports on the financial statements
REPORTS ON THE FINANCIAL STATEMENTS Reports on the consolidated financial statements and on the parent company financial statements (pages 228 to 229 and 259 of the 2015 Registration Document respectively) • 1st and 2nd resolutions of the Ordinary Shareholders’ meeting o The purpose of our audit is
Slide 70: Reports on the financial statements: justification of our assessments
REPORTS ON THE FINANCIAL STATEMENTS Justification of our assessments Focus points Specific procedures o Measurement of property, o Assessing the methods applied in implementing impairment plant and equipment and tests of property, plant and equipment and intangible assets intangible assets and the e
Slide 71: Other reports: related party agreements and commitments
OTHER REPORTS Special report on related party agreements and commitments (pages 262 to 265 of the 2015 Registration Document) • 4th resolution of the Ordinary Shareholders’ meeting • Agreements and commitments to be submitted for the approval of the Annual General Meeting: - We were not informed of
Slide 72: Other reports: internal control and non-financial information
OTHER REPORTS Report on the report of the Chairman of the Board of Directors on internal control and risk management procedures (page 160 of the 2015 Registration Document) Report by one of the Statutory Auditors, appointed as an independent third party, on the consolidated environmental, labour and
Slide 73: Other reports: share capital transactions
OTHER REPORTS Special report on the share capital transactions • 13th and 14th resolutions of the Extraordinary Shareholders’ meeting • Your Board of Directors is asking your authorization to: - Grant stock options exercisable for existing or new shares to the benefit of employees and executive Dire
Slide 74: Statutory Auditors' Reports
STATUTORY AUDITORS’ REPORTS