REG - Compagnie St-Gobain - Annual Financial Report

Compagnie de Saint Gobain SAAnnouncement

29/02/2024 17:30

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RNS Number : 0494F  Compagnie de Saint-Gobain  29 February 2024

The worldwide leader

in light & sustainable construction

 

2023 ANNUAL RESULTS
 
Record operating margin

and free cash flow

 

·    Good resilience in sales, down 0.9% like-for-like despite a difficult
environment in new construction in Europe

·    Record operating margin of 11.0% (up in all Regions) and record
operating income at constant exchange rates

·    Record free cash flow of €3.9bn, with a cash conversion ratio of
62%

·    34% reduction in CO(2) emissions vs 2017 (scope 1 and 2)

·    Total shareholder return (TSR) of 51% in 2023, with €1.6bn of share
buybacks and dividends. Dividend of €2.10 (+5%) recommended for 2023

·    2024 outlook: despite a context which remains difficult in certain
markets, the Group expects a double-digit operating margin for the fourth
consecutive year

 

 

Benoit Bazin, Chief Executive Officer of Saint-Gobain, commented:

 

"In a difficult macroeconomic environment with lower volumes, Saint-Gobain
once again demonstrated the strength of its "Grow & Impact" strategy and
of its positioning as the worldwide leader in light and sustainable
construction. Our cost actions and well-managed pricing helped drive an
improvement in the operating margin and in free cash flow generation, which
both reached all-time highs. Thanks to strict capital allocation in terms of
both capex and acquisitions, the Group now generates almost two-thirds of its
earnings in North America, emerging countries and Asia-Pacific, and I am
delighted with the strong contribution that our planned acquisition of CSR in
Australia would bring. Supported by the impressive agility and dedication of
our teams, Saint-Gobain is outperforming and demonstrating its resilience in
contrasting markets, benefiting from its proximity to customers and its unique
range of comprehensive innovative solutions. Saint-Gobain is determined to
remain at the forefront of sustainable construction with the launch of
low-carbon solutions, while reducing its own CO(2) footprint, which is now 34%
lower than in 2017 (scope 1 and 2).

 

I am confident that 2024 will be another successful year for Saint-Gobain,
thanks to good momentum in the fast-growing North American, Asian and emerging
markets and to the seamless integration of our recent acquisitions,
particularly in construction chemicals. In Western Europe, renovation will
continue to show resilience, while new construction will remain difficult but
will gradually reach a low point country by country, in a market that remains
structurally healthy given its construction needs. In this context, in 2024 we
expect a double-digit operating margin for the fourth consecutive year."

Success of the "Grow & Impact" strategic plan

 

An attractive profitable and sustainable growth profile

 

The "Grow & Impact" plan rolled out as from 2021 has placed the Group on a
financial trajectory that has seen an acceleration in growth of its results,
cash flow and value creation, delivering on all the objectives set three years
ago:

·    Strong organic growth of 6.4% per annum on average(1), supported by
an unrivalled range of sustainable solutions accounting for almost
three-quarters of Group sales;

·    Creation of a world leader in construction chemicals, with annual
sales of €5.7 billion (pro forma for recent acquisitions and divestments),
thanks to strong organic growth and the 30 acquisitions carried out in the
last three years;

·    Pro forma operating income well-balanced between the three geographic
zones: 32% in North America, 31% in Asia and emerging countries and 37% in
Western Europe;

·    Record profitability and value creation, with on average over three
years: an operating margin of 10.5%, a free cash flow conversion ratio of 58%
and a ROCE of 15.8%;

·    Significant efficiency gains thanks to the organization by country
with 90% of CEOs native to their country, resulting in close proximity to
customers, stronger pricing power and enhanced results-driven accountability
for local teams;

·    Record-high shareholder return: €4.1 billion returned to
shareholders over a three-year period through share buybacks and dividends.
With almost €1.6 billion in shares bought back over three years, the Group
is ahead of the €2 billion target it had set for the five-year period
2021-2025.

 

Sustainability is at the heart of the Group's strategy

 

Saint-Gobain is rolling out its range of high-performing sustainable
solutions, aimed at maximizing the positive impact for its customers,
including:

·    Low-carbon solutions: ORAÉ(®), the world's first-ever low-carbon
glass (42% less CO(2)), and Glasroc(®) X and H plasterboard reinforced with
Adfors fiber glass mat with a carbon footprint two to three times lower than
traditional alternatives;

·    Solutions for the circular economy: Placo(®) Infinaé 13
plasterboard made with over 50% recycled plaster;

·    Solutions reducing carbon emissions for our customers: Chryso
EnviroMix(®), allowing a 50% reduction in CO(2) emissions from concrete.

 

Saint-Gobain is also making rapid progress in minimizing its environmental
footprint, notably thanks to several innovations in its production processes:

·    Start-up of the world's first-ever 100% electric production of
plasterboard in Norway, using 100% renewable electricity;

·    World's first-ever test production of glass in a furnace powered by
over 30% hydrogen in Germany;

·    Very-low-carbon production of siding in the US (with 100%
renewably-sourced electricity), plasterboard in India (thanks to the use of
biomass) and acoustic ceilings in Finland (via the use of biogas and recycled
glass).

 

In 2023, Saint-Gobain invested €223 million in capital expenditure and
research & development for decarbonization. Its investment decisions are
underpinned by the internal carbon prices (in force since 2016) that have once
again been raised from €75 to €100 per tonne for capex investments and
from €150 to €200 per tonne for research & development projects.
Thanks to these efforts, the Group was able to reduce its scope 1 and 2 CO(2)
emissions by 34% (to 8.8 million tonnes) and together with the growth in its
earnings, carbon intensity per euro of sales and EBITDA fell by 44% and 56%,
respectively, in 2023 versus 2017.

 

 1. Average organic growth over 2021-2023: +6.9% in 2021 (+13.8% for 2021/2019
 divided by two), +13.3% in 2022 and -0.9% in 2023.

 

 

Saint-Gobain has also increased the proportion of carbon-free electricity that
it uses, which reached 57% of its consumption in 2023 (versus 52% in 2022).
Thanks to eight new renewable electricity supply agreements (Power Purchase
Agreements or Virtual Power Purchase Agreements) signed since the start of
2023 (US, India, France, South Africa, Egypt, Italy, Sweden and China), around
two-thirds of the electricity used by the Group will be carbon-free by 2025.

 

In terms of safety, the Group's accident frequency rate with and without lost
time (TRAR, including subcontractors and temporary staff) was 1.3 (down 18%
year-on-year) and has been halved over the past five years.

 

Lastly, stakeholder engagement at Saint-Gobain increased once again in 2023:

·    87% of Group employees took part in the me@Saint-Gobain survey, with
an 83% engagement rate and a strong feeling of belonging for 89% of employees
(versus an average benchmark of 73%);

·    As the global industry leader, the Group launched the Sustainable
Construction Observatory in 2023, with three Sustainable Construction Talks
held during the year (Paris, New York during Climate Week and Dubai during
COP28);

·    Saint-Gobain also supported around 100,000 trade professionals in
France in 2023 in the area of training and certification, including in the RGE
(Recognized Guarantor of the Environment) certification; over 80% of building
projects eligible for the MaPrimeRénov' household stimulus package use the
advisory and estimation tool CAP RENOV developed and commercialized by
Saint-Gobain.

 
Group operating performance

 

Like-for-like sales showed good resilience, down 0.9%, supported by advances
in Asia-Pacific, the Americas and High Performance Solutions, in contrast to
the difficult macroeconomic environment in Europe. The Group continued to
outperform its main markets thanks to the pertinence of its strategic
positioning at the heart of energy and decarbonization challenges, and the
strength of its local organization by country, offering comprehensive
solutions to its customers.

 

In a less inflationary environment, Group prices were up 4.6% over the year
(up 0.8% in the fourth quarter), generating a positive price-cost spread once
again.

 

In line with the Group's expectations for the year announced at the start of
2023, volumes were down by 5.5% over the year (down 4.5% in the fourth
quarter), reflecting a contrasting situation: a marked decline in new
construction but good resilience overall in renovation. In each local market,
the Group is taking the proactive commercial and industrial measures necessary
to maintain its strong operating performance.

 

On a reported basis, sales were down by 6.4% to €47.9 billion, with a
negative currency effect of 2.3% and a negative Group structure impact of
3.2%. The Group structure impact results from the ongoing optimization of the
Group's profile, both in terms of disposals - mainly in distribution (UK,
Poland and Denmark), glass processing activities, Crystals & Detectors and
ceramics for the steel industry - and in terms of acquisitions, mainly in
construction chemicals (GCP Applied Technologies, Impac in Mexico, Matchem in
Brazil and Best Crete in Malaysia), exterior products in Canada (Kaycan and
Building Products of Canada) and insulation (U.P. Twiga in India).

 

Thanks to its recent acquisitions and investments, the Group has successfully
strengthened its position in North America, Asia and emerging countries, as
well as in construction chemicals. Construction chemicals overall delivered
solid 3.4% organic growth in 2023.

 

The integration of recent acquisitions is proceeding well, and synergies have
been confirmed and successfully put in place:

·    Taken together, Chryso and GCP improved their EBITDA margin by more
than 400 basis points compared to 2022 and generated €50 million in
synergies, ahead of targets. Chryso created value from year two - one year
earlier than expected - thanks to its excellent operating performance and a
seamless integration: the business reported EBITDA of €121 million and
continues to deliver an industry-leading margin. GCP met its target of US$170
million in EBITDA for 2023, as expected for the first full year since its
acquisition;

·    Kaycan reported C$101 million in EBITDA in 2023 and also unlocked
synergies, particularly in procurement, ahead of targets;

·    The integration process is proceeding in line with expectations for
Building Products of Canada, acquired in September 2023.

 

Operating income was €5,251 million, a record-high at constant exchange
rates (2022 rates). The operating margin reached a new record-high of 11.0% in
2023 (versus 10.4% in 2022), representing an increase of 330 basis points
since the launch of the Group's transformation at the end of 2018. Despite a
difficult macroeconomic environment, all Regions reported operating margin
growth, once again testifying to the Group's resilience.

 

Segment performance (like-for-like sales)

 

Northern Europe: record margin despite lower sales

 

The Region was down 5.9% in 2023 amid a sharp slowdown in new construction,
while renovation (around 55% of sales) proved more resilient. The Region's
operating margin hit a new annual record-high of 8.2% (versus 7.8% in 2022),
thanks to an optimized business profile and very well managed costs and
industrial efficiency.

 

In Nordic countries, the sharp fall in new construction, particularly in
Sweden and Norway, was partly offset by our exposure to renovation.
Saint-Gobain further differentiated its offer in 2023, with the commercial
launch of Klima plasterboard manufactured at its Fredrikstad plant in Norway
using 100% hydroelectric power. The UK outperformed a downbeat market,
benefiting from strong sales momentum thanks to the success of its local
organization and comprehensive range of solutions along with a newly optimized
portfolio. Germany continued to suffer in a difficult macroeconomic
environment which weighed on new construction; Saint-Gobain launched a
closed-loop recycling service for Isover insulation and Rigips plasterboard in
the country in 2023. In Eastern Europe, volumes progressed in the fourth
quarter, driven by our comprehensive range of interior and exterior solutions.

 

Southern Europe - Middle East & Africa: resilient sales and margin growth

 

The Region's sales held up well (down 0.9%) owing to renovation (nearly 70% of
sales), while new construction continued its decline. The operating margin for
the Region performed well, at 8.1% (versus 8.0% in 2022), thanks to very well
managed costs and industrial efficiency.

 

Amid a sharp decline in new construction, Saint-Gobain continued to outperform
in France thanks to its exposure and extensive expertise in renovation,
supported by regulatory tailwinds and the increase in stimulus measures, both
for private housing (the MaPrimeRénov' household renovation package, which
was raised from €2.7 billion for 2023 to €4 billion for 2024) and for
programs related to public and commercial buildings. The Group continues to
enhance its offering, with dedicated initiatives for major eco-certified
projects, high value-added low-carbon solutions, and white papers on its
complete offering for healthcare and educational facilities and the renovation
of multi-family housing.

 

In line with the introduction of the Extended Producer Responsibility (EPR)
regulation in 2023 on end-of-life management of construction waste, the Group
has ramped up its recycling services with Saint-Gobain Glass(®) Recycling,
Placo(®) Recycling and Isover(®) Recycling, thanks to the start-up of a
new-generation furnace for recycling glass wool from construction waste at
Chemillé.

In Spain and Italy, sales were up in broadly resilient construction markets,
and the Group launched Placotherm(®) Integra, a comprehensive light façade
solution offering thermal insulation and acoustic protection using Glasroc(®)
X technology.

Middle East and Africa enjoyed strong growth, especially in Turkey - where the
acquisition of Dalsan created a new leader in light and sustainable
construction solutions - and in Egypt, where the Group's growth accelerated
thanks to the acquisition of Drymix in construction chemicals. Saint-Gobain
also enhanced its building envelope offering in Saudi Arabia through its
acquisition of Izomaks in construction chemicals (waterproofing products).

 

 

Americas: sales growth in North America and record margin

 

The Region delivered 1.9% organic growth in 2023, driven by the
outperformance in North America. Operating income hit a new record-high
(€1.6 billion), along with its operating margin at 16.8% (versus 16.1% in
2022), supported by well-managed costs and productivity, and the upturn in
volumes in North America.

 

-  North America reported 5.3% organic growth over the year (8.7% as
reported, including the integration of Kaycan, Building Products of Canada and
GCP's waterproofing membranes) in a new construction market that has
stabilized. Good momentum in the second half of the year drove a significant
rise in volumes and Saint-Gobain saw further market share gains thanks to its
comprehensive, differentiated range of interior and exterior light
construction solutions. The integrations of GCP and Kaycan are making
particularly good progress, enabling us to achieve the expected synergies. The
Building Products of Canada acquisition was completed more quickly than
expected, as of September 2023, allowing Saint-Gobain to reinforce its
leadership in Canada in construction materials with a comprehensive range of
interior and exterior solutions. In light of the favorable growth outlook,
capital expenditure increased in North America, totaling over €350 million
in 2023.

 

-  Latin America was down by 7.3% in 2023. Despite a difficult macroeconomic
climate throughout the year in Brazil, the volume decline eased towards the
end of the period - thanks to the outperformance of light construction
solutions - and some macroeconomic indicators are improving (falling interest
rates, inflation under control, stimulus plan). Saint-Gobain saw market share
gains in Mexico and benefited from the highly successful integration of Impac
(construction chemicals: waterproofing). Other countries benefited from an
increase in sales prices, an enriched mix, and a geographic footprint and
product range extended by bolt-on acquisitions. The Group has successfully
replaced 25% of its natural gas with biogas at its glass plant in Jacarei near
São Paulo, and 100% at its mortars plant in Rio de Janeiro.

 

Asia-Pacific: good sales momentum and record margin

 

The Region reported 5.3% organic growth over the year, with good momentum in
volumes and a record operating margin at 12.6% (versus 12.1% in 2022).

 

India posted another year of outperformance thanks to its comprehensive and
innovative range of solutions, the successful integration of recent
acquisitions in insulation and the start-up of new capacity (plasterboard,
glass and construction chemicals). Saint-Gobain plays a pioneering role in
promoting low-carbon buildings in India: the Group has launched the first
low-carbon production of plaster and the first low-carbon glass in the
country, with a 40% reduction in CO(2) emissions (scope 1 and 2).

In a difficult construction market in China, the Group continued to capture
market share and increase volumes, thanks to its light construction solutions
and its differentiated range of products and services (moisture resistance,
fire resistance, improved air quality, digital marketing). The Group
inaugurated its fourth plasterboard factory and its fifth gypsum factory, in
Yuzhou (Henan province), thereby expanding its footprint towards inner China.

In South-East Asia, Malaysia, Singapore, Indonesia and the Philippines
reported strong growth, driven by an enriched range of solutions and recent
acquisitions (Best Crete in construction chemicals and Hume Cemboard
Industries in light construction in Malaysia). Vietnam outperformed a
difficult market in 2023 thanks to the rollout of personalized logistics and
digital services.

 

 

High Performance Solutions (HPS): sales and margin held firm

 

HPS delivered 2.6% organic growth, benefiting from innovation efforts, a
recovery in automotive and an increase in sales prices. The operating margin
remained stable at 12.0%, with good cost management offsetting the negative
mix effect in Mobility.

 

-  Businesses serving global construction customers saw sales grow 23% as
reported, due mainly to the GCP integration. Chryso continued to post a strong
performance, with 9.1% organic growth driven by infrastructure projects and
innovation for decarbonizing construction. Business picked up pace for GCP,
thanks to the successful implementation of integration synergies, in
particular vertical integration in polymerization. In 2023, three new
acquisitions were carried out to complete the portfolio of technological
solutions and accelerate geographic expansion; four new plants or production
lines were opened (Romania, India, Turkey and France) - notably leveraging
Saint-Gobain's global presence to start up new production facilities in record
time at existing Group sites - and the construction of 10 new facilities began
(notably in the US, Mexico, Brazil, the Philippines and Australia).

However, Adfors' reinforcement solutions contracted due to their greater
exposure to new construction in Europe.

 

-  The Mobility business outperformed, buoyed by the increase in sales
prices, its technological expertise and its position in electric vehicles -
accounting for 38% of sales at the end of the year. Momentum remained upbeat
in the Americas and Asia and volumes rebounded in Europe against a weak
comparison basis.

 

-  Businesses serving Industry were driven by sales prices and by demand for
cutting-edge materials and decarbonization technologies, despite a slowdown in
industrial markets. In France in the fourth quarter, the Group inaugurated a
new automated production line reducing energy requirements by 65% to
manufacture Cruciforms(®) refractories - which are essential for our glass
customers' decarbonization processes. The recent acquisition of Glass Service,
a leading provider of digital solutions for glass furnaces, particularly in
the field of control and optimization systems, completes our offer for these
customers.

 

 

 

 

Analysis of the 2023 consolidated financial statements

 

The 2023 consolidated financial statements were approved by Saint-Gobain's
Board of Directors at its meeting of February 29, 2024. The consolidated
financial statements were audited and certified by the statutory auditors.

 in € million                                                                    2022    2023    % change
 Sales                                                                           51,197  47,944  -6.4%
 Operating income                                                                5,337   5,251   -1.6%
 Operating margin                                                                10.4%   11.0%
 Operating depreciation and amortization                                         2,048   1,986   -3.0%
 Non-operating costs                                                             -262    -236    9.9%
 EBITDA                                                                          7,123   7,001   -1.7%
 Capital gains and losses on disposals, asset write-downs and impact of changes  -493    -784    -59.0%
 in Group structure
 Business income                                                                 4,582   4,231   -7.7%
 Net financial expense                                                           -405    -425    -4.9%
 Dividends received from investments                                             1       1       n.s
 Income tax                                                                      -1,082  -1,060  2.0%
 Share in net income of associates                                               5       9       n.s
 Net income before non-controlling interests                                     3,101   2,756   -11.1%
 Non-controlling interests                                                       98      87      -11.2%
 Net attributable income                                                         3,003   2,669   -11.1%
 Earnings per share(2) (in €)                                                    5.84    5.26    -9.9%
 Recurring net income(1)                                                         3,335   3,242   -2.8%
 Recurring(1) earnings per share(2) (in €)                                       6.48    6.39    -1.4%
 EBITDA                                                                          7,123   7,001   -1.7%
 Depreciation of right-of-use assets                                             -716    -692    3.4%
 Net financial expense                                                           -405    -425    -4.9%
 Income tax                                                                      -1,082  -1,060  2.0%
 Capital expenditure(3)                                                          -1,940  -2,029  4.6%
      o/w additional capacity investments                                        830     837     0.8%
 Changes in working capital requirement                                          -19     278     n.s
 Free cash flow(4)                                                               3,791   3,910   3.1%
 Free cash flow conversion(5)                                                    59%     62%
 ROCE                                                                            16.1%   15.9%
 Lease investments                                                               764     828     8.4%
 Investments in securities net of debt acquired(6)                               3,783   1,306   -65.5%
 Divestments                                                                     501     947     89.0%
 Consolidated net debt                                                           8,232   7,393   -10.2%

 

1.     Recurring net income = net attributable income excluding capital
gains and losses on disposals, asset write-downs and material non-recurring
provisions

2.     Calculated based on the weighted average number of shares
outstanding (507,282,902 shares in 2023; 514,372,413 shares in 2022)

3.     Capital expenditure = investments in tangible and intangible assets

4.     Free cash flow = EBITDA less depreciation of right-of-use assets,
plus net financial expense, plus income tax, less capital expenditure
excluding additional capacity investments, plus change in working capital
requirement

5.     Free cash flow conversion ratio = free cash flow divided by EBITDA,
less depreciation of right-of-use assets

6.     Investments in securities net of debt acquired = €1,306 million
in 2023, of which €1,073 million in controlled companies

 

EBITDA came in at €7,001 million, close to its all-time high of 2022. EBITDA
includes lower non-operating costs of €236 million.

 

The net balance of capital gains and losses on disposals, asset write-downs
and the impact of changes in Group structure represented an expense of €784
million. It reflects €238 million in asset write-downs essentially relating
to site closures and disposals (€292 million in 2022), €181 million in
Purchase Price Allocation (PPA) intangible amortization (€116 million in
2022), and €365 million in disposal losses and impacts relating to changes
in Group structure, mainly translation adjustments on UK distribution assets
sold in March 2023.

 

Recurring net income was €3,242 million. The tax rate on recurring net
income was 25%.

 

Capital expenditure totaled €2,029 million, with around 70% of growth capex
invested in North America, Asia and emerging countries. The Group opened 23
new plants and production lines focused on the fast-growing markets of
construction chemicals and light construction.

 

Free cash flow came in at a new record-high of €3,910 million - a three-fold
increase compared to 2018. The conversion ratio was 62% (59% in 2022),
reflecting very good management of operating working capital requirement
(WCR), which represented 13 days' sales at end-2023 compared to 15 days'
sales at end-2022.

 

ROCE was 15.9% in 2023, resulting in strong value creation for our
shareholders.

 

Investments in securities totaled €1,306 million, with Building Products of
Canada (roofing) the largest acquisition for around €900 million.
Divestments totaled €947 million, mainly reflecting the sale of distribution
activities in the UK for €803 million.

 

Net debt fell 10.2% to €7.4 billion. The net debt to EBITDA ratio was 1.1
versus 1.2 at end-2022.

 

 

Attractive shareholder return policy

 

In 2023, the dividend paid and share buybacks carried out represented €1.6
billion:

·    A dividend of €1,013 million was paid in respect of 2022;

·    An amount of €542 million was allocated for share buybacks in 2023
(net of employee share creation), reducing the number of shares outstanding to
502 million at end-2023 (511 million at end-2022).

 

Saint-Gobain's Board of Directors decided to recommend to the Shareholders'
Meeting on June 6, 2024 the payment of a cash dividend up 5% to €2.10 per
share for 2023 (€2.00 in 2022).

The ex-dividend date has been set at June 10 and the dividend will be paid on
June 12, 2024.

 

In 2024 the Group expects to complete - one year earlier than expected - its
five-year €2 billion share buyback program announced in 2021, i.e. €420
million of share buybacks in 2024.

 

2024 outlook and strategic priorities

 

In a geopolitical and macroeconomic environment that remains challenging,
Saint-Gobain will continue to demonstrate its resilience and its excellent
operating performance, thanks to its focused strategy and its proactive
commercial and industrial initiatives.

 

Saint-Gobain expects some of its markets to remain difficult in 2024,
especially in the first half of the year owing to a high comparison basis,
with a contrasting situation between Europe and the rest of the world:

·    Europe: resilience in renovation; new construction remaining
difficult before gradually reaching its low point country by country;

·    Americas: construction to hold firm in North America (new build and
renovation); recovery expected during the year in Latin America;

·    Asia-Pacific: good growth in most countries;

·    High Performance Solutions: Construction Chemicals to see dynamic
growth; Mobility to hold firm and a contrasting situation on industrial
markets in terms of demand.

 

 

Against this backdrop, in 2024 the Group will continue to implement the
strategic priorities set out in its "Grow & Impact" plan for 2021-2025:

 

1) Continue our initiatives focused on profitability and free cash flow
generation

·    Constant focus on the price-cost spread;

·    Productivity initiatives and swift adjustments from country to
country where necessary;

·    Capital expenditure slightly above 4% of sales, with strict
allocation to high-growth markets.

 

2) Outperform our markets by strengthening our profitable growth profile

·    Enrich our comprehensive range of integrated, differentiated and
innovative solutions offering sustainability and performance for our
customers;

·    Continue our value-creating targeted acquisitions and divestments
dynamic, and benefit from the successful integration of recent acquisitions.

 

3) Continued focus on our ESG roadmap as leader in sustainable construction

·    Promote our positive-impact and low-carbon solutions among our
customers;

·    Extend the decarbonization of construction to the entire value chain,
playing our full role as leader in light and sustainable construction.

 

 

 

Despite a context which remains difficult in certain markets,

in 2024 Saint-Gobain expects a double-digit operating margin

for the fourth consecutive year

 

 

 

 

 

 

 

 

Financial calendar

An information meeting for analysts and investors will be held at 8:30am (GMT
+1) on March 1, 2024 and will be streamed live on Saint-Gobain's website:
www.saint-gobain.com (http://www.saint-gobain.com)

·    Sales for the first quarter of 2024: Thursday April 25, 2024, after
close of trading on the Paris stock exchange

·    UK site visit: Tuesday July 2, 2024

 Analyst/investor relations                Press relations
 Vivien Dardel:         +33 1 88 54 29 77  Patricia Marie:   +33 1 88 54 26 83
 Floriana Michalowska:  +33 1 88 54 19 09  Laure Bencheikh:  +33 1 88 54 26 38
 Alix Sicaud:           +33 1 88 54 38 70
 James Weston:          +33 1 88 54 01 24

First-half 2024 results: Thursday July 25, 2024, after close of trading on the Paris stock exchang

 

Glossary:
- 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 year (Group
structure impact);

•     changes in foreign exchange rates, by calculating indicators for
the year under review and those for the previous year based on identical
foreign exchange rates for the previous year (currency impact);

•     changes in applicable accounting policies.

 

- EBITDA = operating income plus operating depreciation and amortization, less
non-operating costs.

- Operating margin = operating income divided by sales.

- ROCE (Return on Capital Employed) = operating income for the year adjusted
for changes in Group structure, divided by segment assets and liabilities at
year-end.

- ESG = Environment, Social, Governance.

- Purchase Price Allocation (PPA) = the process of assigning a fair value to
all assets and liabilities acquired and of allocating the residual goodwill as
required by IFRS 3 (revised) and IAS 38 for business combinations. PPA
intangible amortization relates to amortization charged against brands,
customer lists, and intellectual property, and is recognized in "Other
operating expenses and asset impairment".

- Pro forma = sales or operating income including the full-year impact of
changes in Group structure.

- TRAR = total recordable accident rate with and without lost time for 1
million hours worked for the Group's employees, temporary workers and
permanent subcontractors.

- TSR = total shareholder return, including changes in the share price,
dividends received and reinvested in shares and transactions in the Company's
shares.

 

All indicators contained in this press release (not defined in the footnotes)
are explained in the notes to the consolidated financial statements as at
December 31, 2023, available by clicking here:
https://www.saint-gobain.com/en/news/full-year-2023-results
(https://www.saint-gobain.com/en/news/full-year-2023-results)

 

Net
debt
Note 10

Non-operating costs                        Note 5

Operating income                            Note
5

Net financial expense                      Note 10

Recurring net income                       Note 5

Business income                             Note 5

Working capital requirement              Note 5

 

 

Important disclaimer - forward-looking statements:

This press release 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
similar expressions. Although Saint-Gobain believes that the expectations
reflected in such forward-looking statements are based on reasonable
assumptions as at the time of publishing this document, investors are
cautioned that these statements are not guarantees of its future performance.
Actual results may differ materially from the forward-looking statements as a
result of a number of known and unknown risks, uncertainties and other
factors, many of which are difficult to predict and are generally beyond the
control of Saint-Gobain, including but not limited to the risks described in
the "Risk Factors" section of Saint-Gobain's Universal Registration Document
and the main risks and uncertainties presented in the half-year 2023 financial
report, both documents being available on Saint-Gobain's website
(www.saint-gobain.com (http://www.saint-gobain.com) ). Accordingly, readers of
this document are cautioned against relying on these forward-looking
statements. These forward-looking statements are made as of the date of this
document. Saint-Gobain disclaims any intention or obligation to complete,
update or revise these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable laws
and regulations.

This press release does not constitute any offer to purchase or exchange, nor
any solicitation of an offer to sell or exchange securities of Saint-Gobain.

For further information, please visit www.saint-gobain.com
(http://www.saint-gobain.com)

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