TIDMCOD
RNS Number : 9046Q
Compagnie de Saint-Gobain
23 February 2023
The worldwide leader
in light & sustainable construction
Record 2022 results
-- All financial performance indicators at a record high in 2022
(growth, operating income, margin, recurring net income, free cash
flow, ROCE)
-- Profound transformation of the Group's profile towards
fast-growing markets: one-third of sales rotated in the past four
years, increasing its exposure to North America and emerging
countries and taking construction chemicals sales to EUR5.3bn
-- 27% reduction in CO(2) emissions versus 2017 (scopes 1 and 2), -5% in 2022 versus 2021
-- Shareholder return: EUR1.35bn in 2022 (share buybacks and
2021 dividend). Dividend of EUR2.00 (+23%) recommended for 2022
-- 2023 outlook: further execution of the "Grow & Impact"
strategy, with the operating margin to remain in the 9%-11%
range
(EURm) 2021 2022 Change
Sales 44,160 51,197 +15.9%
Operating income 4,507 5,337 +18.4%
Operating margin (%) 10.2% 10.4% +20 bps
Recurring EPS (EUR) 5.35 6.48 +21.1%
Free cash flow 2,904 3,791 +30.5%
ROCE (%) 15.3% 16.1% +80 bps
Benoit Bazin, Chief Executive Officer of Saint-Gobain,
commented:
"In an unsettled geopolitical, energy and macroeconomic
environment in 2022, the Group once again delivered record results.
Over the last four years of its transformation, Saint-Gobain has
outperformed, achieving a two-fold increase in its earnings per
share, a structural improvement of 240 basis points in its
operating margin, and a three-fold increase in its cash flow
generation. The Group's profile has been profoundly optimized:
one-third of the Group's scope has changed in the past four years
and over 60% of our earnings now come from North America and
emerging countries. As the worldwide leader in light and
sustainable construction, the Group draws on its innovation
capabilities and expertise to provide solutions to the considerable
challenges posed by the climate and energy crises, which are
structural growth drivers for Saint-Gobain for the coming
decades.
I am confident that 2023 will be a good year for Saint-Gobain.
Our roadmap is clear: disciplined execution of the "Grow &
Impact" strategic priorities, leveraging the strength of our
operating model against the backdrop of a slowdown in new
construction but good resilience in renovation. I know I can rely
on the dedication and talent of our teams, who do everything
possible to best serve their customers and who monitor their
performance in real time within our organization by country. In
this context, in 2023 we are targeting an operating margin of
between 9% and 11%, in line with the objectives set out in our
"Grow & Impact" plan for 2021-2025."
A new, resilient growth profile
2018-2022: years of profound transformation for the Group
- 23% increase in sales in a context of a profound change in
Group structure, with one-third of sales rotated since 2018: EUR9
billion in divestments and almost EUR4 billion in acquisitions;
- Sharp improvement in the operating margin in 2022 versus 2018
(270 basis points), including a structural gain of 200 basis points
in the period - set to rise to 240 basis points on a full-year
basis after the disposal of the UK distribution business - thanks
to cost savings related to the new organization and the
optimization of the Group's profile;
- Significant efficiency improvements thanks to our new
organization, reflected especially in close proximity to customers,
stronger pricing power and an enhanced culture of results-driven
accountability for local teams.
(EURm) 2018 2022 Change
Sales 41,774 51,197 +23%
Operating income 3,207 5,337 +66%
Operating margin
(%) 7.7% 10.4% +270 bps
Recurring EPS (EUR) 3.18 6.48 x 2
Free cash flow 1,236 3,791 x 3
ROCE (%) 10.7% 16.1% +540 bps
2021-2022: successful deployment of the "Grow & Impact"
strategic plan
The first two years of the plan successfully met the new
financial trajectory set out in "Grow & Impact", with an
acceleration in results, cash flow and value creation, exceeding
objectives across the board:
- Strong organic growth of 10% per annum on average(1) ,
benefiting from an unrivalled offer of sustainable solutions
accounting for almost three-quarters of Group sales;
- A world leader in construction chemicals, with annual sales of
EUR5.3 billion (pro forma basis for changes in Group structure in
2022), thanks to strong organic growth and recent acquisitions
(Chryso, GCP, Impac in Mexico, Brasprefer and Matchem in Brazil,
IDP Chemicals in Egypt, Best Crete in Malaysia, Choksey Chemicals
in India, and Urumix in Uruguay);
- Operating income now well-balanced between the three
geographic zones (pro forma basis for changes in Group structure in
2022): 30% in North America, 32% in Asia and emerging countries and
38% in Western Europe;
- Record financial results, with on average over two years: an
operating margin of 10.3%, a free cash flow conversion ratio of 56%
and strong value creation with a ROCE of 15.7%;
- Record-high shareholder return: EUR2.6 billion over two years
through share buybacks and dividend payouts. With over EUR1 billion
in shares bought back over two years, the Group is ahead of its
EUR2 billion buyback target over five years (2021-2025).
1. Average organic growth in 2021 and 2022: +6.9% in 2021 (+13.8% for 2021/2019
divided by
two) and +13.3% in 2022.
Sustainability is at the heart of the Group's strategy
As worldwide leader in light and sustainable construction,
Saint-Gobain has a key role to play in building a carbon-neutral
economy. The Group made further significant progress on
environmental and social matters in 2022, allowing it to reduce its
footprint while maximizing the positive impact of its range of
solutions, in line with its "Grow & Impact" strategy. The
solutions sold by Saint-Gobain across the globe in one year result
in around 1,300 million tons of avoided CO(2) emissions over their
lifespan, i.e., more than 100 times its scope 1 and 2
footprint.
Saint-Gobain achieved three world-firsts during 2022:
- Zero-carbon production (scopes 1 and 2) of glass in France;
- Zero-carbon production (scopes 1 and 2) of plasterboard in Sweden;
- Very low carbon production (scopes 1 and 2 down 93% versus
average) of insulation (glass wool) in Finland.
The Group has reduced its scope 1 and 2 CO(2) emissions by 27%
since 2017, including a 5% reduction in 2022 (to 9.8 million tons),
in line with the 33% emissions reduction target through to 2030
validated by the Science-Based Targets initiative (SBTi).
Growth decoupled from its CO(2) emissions: carbon intensity per
euro of sales and EBITDA fell by 42% and 57%, respectively, in 2022
versus 2017, reflecting the Group's objective of maximizing its
positive impact for the environment while minimizing its
footprint.
We stepped up our commitment to the circular economy, reducing
our non-recovered waste by 37% versus 2017. Saint-Gobain rolled out
ORAÉ(R), the world's first low carbon glass featuring 70% of cullet
(recycled glass), as well as Placo(R) Infini 13, the first
plasterboard made with over 50% of recycled gypsum.
In 2022, in line with its commitment, Saint-Gobain finalized the
roll-out of its "CARE by Saint-Gobain" social protection and
prevention program. The program provides cover for the Group's
employees, in all countries where it operates, supporting them
during different stages of their lives (maternity and paternity
leave, medical and hospitalization costs for the entire family,
life insurance).
In terms of safety, our accident frequency rate with and without
lost time (TRAR or total recordable accident rate) fell by 19%
between 2021 and 2022, and has been almost halved in the last five
years.
The year's progress was recognized by the following major
independent organizations:
- SBTi validated Saint-Gobain's 2050 target and confirmed that
the Group's net-zero carbon trajectory is in line with the Paris
agreement;
- CDP "A List": second consecutive year;
- Bloomberg Gender-Equality Index 2023: fifth consecutive year;
- Top Employer Global 2023: eighth consecutive year, with only
15 companies worldwide globally recognized.
Group operating performance
Like-for-like sales rose 13.3%. This performance - supported by
strong momentum in all our segments with double-digit organic
growth in each - was driven by the Group's worldwide leadership in
light and sustainable construction.
Leveraging the added value offered by its solutions and its
dynamic local organization as close to its customers as possible,
Saint-Gobain was able to protect its operating margin, generating a
positive price-cost spread over 2022 as a whole and in each half of
the year, thanks to a 14.6% price increase overall (13.8% increase
in the second half against a higher comparison basis). This agility
enabled the Group to effectively manage energy and raw material
cost inflation, which represented about EUR3 billion in 2022 versus
2021.
The Group reported a slight decline in volumes, down 1.3% over
the year as a whole and down 2.3% in the second half (with a
negative working day effect of around 0.5% for this latter
period).
On a reported basis, sales jumped 15.9% to EUR51.2 billion, with
a positive currency effect of 3.6% over the year as a whole (2.4%
in the fourth quarter). The Group structure impact reduced sales by
1.0% over the year as a whole but was positive in the second half,
adding 1.3% to sales.
The Group resolutely continued to optimize its profile in 2022,
in terms of both divestments, with EUR3.8 billion in sales divested
or in the process of being divested - namely distribution in the UK
and Poland, glass processing and Crystals & Detectors
businesses - and in terms of acquisitions, with EUR1.9 billion in
sales acquired, mainly GCP Applied Technologies (GCP) in October
2022 and Impac in Mexico in April 2022 in construction chemicals,
Kaycan in North America in August 2022 in exterior products, and
Rockwool India Pvt Ltd. in February 2022 in insulation.
The disposal of all remaining UK distribution brands (around
EUR2.7 billion in sales in 2022) will be finalized by the end of
March 2023.
The integration of recent acquisitions is proceeding seamlessly,
and all synergies have been confirmed and are being put in
place:
- Chryso: 20% growth in sales and EUR100 million in EBITDA for
2022, maintaining an industry-leading EBITDA margin;
- Kaycan: USD 84 million in EBITDA for 2022 as a whole;
- GCP: EBITDA forecast at USD 170 million in 2023 for the first
full year.
Operating income rose sharply to a new record high of EUR5,337
million, up 18.4% as reported versus 2021 and up 13.3% at constant
exchange rates (up 11.7% like-for-like). Operating income is 66%
higher than in 2018.
The Group's operating margin hit a new record high, at 10.4% in
2022 (versus 10.2% in 2021), representing an increase of 270 basis
points since the launch of the Group's transformation at the end of
2018.
Segment performance (like-for-like sales)
Northern Europe: good growth in sales driven by renovation;
record operating margin
Northern Europe was up 12.4% in the year against a strong
inflationary backdrop, with a slight decrease in volumes amid a
slowdown in new construction. Renovation remained at a good level,
supported by stimulus measures and stricter energy performance
regulations. The Region's operating margin came in at a new record
high of 7.8% (versus 5.6% in 2018), thanks to an optimized business
profile and sound management of the price-cost spread.
Nordic countries outperformed their market thanks to their
successful presence across the entire construction value chain.
Trade professionals continued to see full order books. Our
Fredrikstad factory in Norway, the world's first carbon-neutral
plasterboard plant, will start production by the end of first-half
2023. The UK put in a satisfactory performance amid a more
pronounced slowdown in the market in both new construction and
renovation. The country has been very active in optimizing its
portfolio, with about EUR3.4 billion in sales divested or in the
process of being divested (all distribution brands and glass
processing) over the past two years. In Germany, where the market
slowed in the second half owing to fears regarding inflation and
the energy supply, the Group benefited from its solid positions in
energy efficiency renovation. Despite a slowdown in the second
half, Eastern Europe posted an excellent performance in 2022 - led
by Poland and Romania - benefiting from its leadership positions. A
renewable electricity supply agreement has been signed in Poland
which will cover around 45% of Saint-Gobain Poland's electricity
needs from 2025.
Southern Europe - Middle East & Africa: good sales growth
driven by renovation; very good margin level
Sales in Southern Europe - Middle East & Africa were up by
12.6% in a strongly inflationary environment, with volumes down
slightly over the year on the back of a slowdown in new
construction. Note that the Region delivered a good fourth-quarter
performance with stable volumes, thanks to its continued
outperformance on the more resilient renovation market, where
demand was driven by stricter regulations, government stimulus
measures and faster payback for energy efficiency renovation
projects. Operating income hit a new record high with an operating
margin of 8.0% (versus 4.6% in 2018), thanks to a highly optimized
post-transformation profile, good management of the price-cost
spread, productivity gains and a tight rein on costs.
In France, the Group strengthened its presence on the renovation
market, where trade professionals continue to see healthy order
books - thanks mainly to a favorable regulatory environment, public
building programs and household stimulus packages (MaPrimeRenov').
Saint-Gobain's presence across the entire value chain - the
market's first low-carbon glass solutions, digital apps for
customers, a focus on collection and recycling, training centers
for trade professionals - confirms the Group's position as
undisputed leader in energy efficiency renovation.
Spain and Italy delivered robust growth with a further increase
in volumes, thanks to their commercial organization by sales
channel and range of light and sustainable construction solutions.
Benelux held firm in a more difficult market and benefited from the
development of innovative solutions improving our clients'
productivity. Middle East and Africa continued to see robust
growth, benefiting from the opening of three new construction
chemicals plants (Kenya, South Africa, Oman) and by upbeat markets,
particularly in the Gulf States and Egypt.
Americas: good sales growth driven by comprehensive light
construction solutions; robust margin
The Americas Region delivered 13.9% organic growth, despite a
slowdown in new construction in the second half of the year.
Operating income for the Region hit a new record high of EUR1.5
billion with a 30% increase in absolute terms; the US now
represents the Group's biggest market in terms of operating income.
The Region achieved an operating margin of 16.1% (versus 11.2% in
2018), supported by good momentum from recent acquisitions, cost
and sales synergies and a clear positive raw material and energy
price-cost spread.
- North America progressed by 15.0%, driven by the development
of a comprehensive range of solutions, by good momentum in light
construction solutions, and by a strong presence in renovation.
2022 saw the launch of MaxPro, a new blowing wool to insulate
attics. Although new construction slowed, the structural need for
more housing, as well as the number of construction projects
currently in progress, should help limit the slowdown. Our teams
made good progress on the integration of Kaycan and of GCP's
specialty construction materials business (waterproofing
membranes), helping to speed up implementation of the expected
synergies, confirm the sales development opportunities and
reinforce Saint-Gobain's leading position in construction materials
in North America. After a renewable wind farm energy supply
agreement executed in 2021, in 2022 the Group signed a new contract
based on solar energy: together these agreements will cover over
60% of Saint-Gobain's electricity needs in North America by the end
of 2024.
- Latin America reported 11.0% growth in a macroeconomic
environment that remains challenging in Brazil. Growth in all
countries of the Region was supported by higher sales prices, an
enriched offer and mix, and a geographic footprint and product
range enhanced by bolt-on acquisitions country-by-country in
construction chemicals (Impac in Mexico, Brasprefer in Brazil in
waterproofing, and Urumix in Uruguay - Saint-Gobain's first
facility in the country) and in insulation (Termica San Luis in
Argentina).
Asia-Pacific: strong sales growth and record margin
The Asia-Pacific Region reported 23.6% organic growth, led by
India and South-East Asia. The operating margin came in at an
annual record high of 12.1% (compared to 10.4% in 2018), supported
by good momentum in volumes and by a positive raw material and
energy price-cost spread.
India delivered an excellent performance in 2022, thanks to
further market share gains and an innovative, integrated range of
solutions rolled out to new customers. Around 85 "MyHome by
Saint-Gobain" showrooms presenting our range of solutions to a new
consumer market will soon be operational in the country. To remain
in step with market growth, Saint-Gobain has inaugurated a new
plasterboard plant which will be powered by biomass in 2024,
continued to expand in construction chemicals and made preparations
for the opening of its sixth float glass plant in 2023. The
successful integration of Rockwool India Pvt. Ltd. (stone wool
insulation) and the definitive agreement to acquire U.P. Twiga
Fiberglass Ltd. (glass wool insulation) complete the Group's
leading positions in façade and interior solutions. Despite
disruptions owing to the health situation, China posted moderate
growth mainly driven by prices, benefiting from its distinctive
positioning on the growing light construction and renovation
markets. In South-East Asia, the Group continues to enjoy a strong
growth dynamic and to outperform the market - particularly in
Vietnam and Malaysia - supported by a diversified offering in
construction chemicals with two new production lines opened in 2022
(Vietnam and Philippines). In addition, the acquisition of Best
Crete in Malaysia at the end of the year enhances our resin-based
flooring solutions.
High Performance Solutions (HPS): acceleration in sales
growth
HPS sales were up by 14.3%, benefiting from an acceleration in
prices in the second half and from good volume growth (up 5.0% in
2022), thanks mainly to the recovery in automotive in Europe in the
second half. The operating margin came in at 12.0%, down slightly
year-on-year owing to a negative mix effect and to the gradual
catch-up in prices in Mobility in a strongly inflationary
environment.
- Businesses serving global construction customers achieved
record sales and outperformed the market with 19.5% growth. They
continued to benefit from upbeat trends in textile solutions for
external thermal insulation systems (ETICS). The very strong trends
in Chryso sales and results continued, driven by decarbonization in
the construction sector, growth capex (fifth additives plant in
India) and targeted acquisitions (Matchem in Brazil, IDP Chemicals
in Egypt). The new Construction Chemicals organization integrating
GCP has been in place since October 1, 2022 and will help to
accelerate implementation of the expected synergies.
- The Mobility business saw sales progress 14.9% over the year,
with an acceleration in the second half at 24.4%, supported by both
a gradual catch-up in sales prices and by a rebound in volumes. The
business continued to enjoy upbeat momentum in the Americas, India
and China. Thanks to its technological lead in solutions for
electric vehicles - which accounted for 30% of our sales at the end
of the year - and to its high value-added solutions, the Mobility
business continues to outperform the automotive market.
- Businesses serving Industry grew 12.8%, supported by
activities relating to investment cycles such as ceramics, which
benefited from strong demand for innovation in specialty materials
and new decarbonization technologies. Against this backdrop,
Valoref, a pioneer in ceramic recycling in Europe, increased its
sales by almost 50% in 2022 by expanding its operations
internationally into India and China, and is now targeting North
America.
Analysis of the 2022 consolidated financial statements
The 2022 consolidated financial statements were approved by
Saint-Gobain's Board of Directors at its meeting of February 23,
2023. The consolidated financial statements were audited and
certified by the statutory auditors.
in EUR million 2021 2022 % change
Sales 44,160 51,197 15.9%
Operating income 4,507 5,337 18.4%
Operating margin 10.2% 10.4%
Operating depreciation and amortization 1,934 2,048 5.9%
Non-operating costs -239 -262 -9.6%
EBITDA 6,202 7,123 14.9%
Capital gains and losses on disposals,
asset write-downs and impact of changes
in Group structure -332 -493 -48.5%
Business income 3,936 4,582 16.4%
Net financial expense -408 -405 0.7%
Dividends received from investments 1 1 n.s.
Income tax -919 -1,082 -17.7%
Share in net income of associates 4 5 n.s.
Net income before non-controlling
interests 2,614 3,101 18.6%
Non-controlling interests 93 98 5.4%
Net attributable income 2,521 3,003 19.1%
Earnings per share(2) (in EUR) 4.79 5.84 21.9%
Recurring net income(1) 2,815 3,335 18.5%
Recurring(1) earnings per share(2)
(in EUR) 5.35 6.48 21.1%
EBITDA 6,202 7,123 14.9%
Depreciation of right-of-use assets -679 -716 -5.4%
Net financial expense -408 -405 0.7%
Income tax -919 -1,082 -17.7%
Capital expenditure(3) -1,591 -1,940 -21.9%
o/w additional capacity investments 516 830 60.9%
Changes in working capital requirement -217 -19 91.2%
Free cash flow(4) 2,904 3,791 30.5%
Free cash flow conversion(5) 53% 59%
ROCE 15.3% 16.1%
Lease investments 769 764 -0.7%
Investments in securities net of
debt acquired(6) 1,352 3,783 179.8%
Divestments 322 501 55.6%
Consolidated net debt 7,287 8,232 13.0%
------------------------------------------ ------- ---------
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 (514,372,413 shares in 2022; 526,244,506 in 2021).
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 = EUR3,783
million in 2022, of which EUR3,684 million in controlled
companies.
EBITDA climbed 15% to a new record high of EUR7,123 million (up
53% compared to 2018). EBITDA includes EUR262 million in
non-operating costs.
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 EUR493 million (versus an expense of
EUR332 million in 2021). It reflects EUR292 million in asset
write-downs mainly relating to disposals (UK distribution in
particular), EUR116 million in Purchase Price Allocation (PPA)
intangible amortization, and EUR85 million in disposal losses and
impacts relating to changes in Group structure.
Recurring net income hit a new record high of EUR3,335 million
(up 18%). The tax rate on recurring net income was 25%.
Capital expenditure totaled EUR1,940 million (up 22%), driven by
a 61% increase in growth capex, of which almost 70% was in North
America and emerging countries. Capital expenditure represented
3.8% of sales in 2022. The Group opened 17 new plants and
production lines to bolster its leading positions on the
fast-growing markets of construction chemicals and light
construction, particularly in Asia (India, Philippines, Vietnam,
China), Africa and the Middle East (Kenya, Zimbabwe, Oman), Latin
America (Mexico, Brazil) and Europe (Czech Republic with a 3D
printing site, Poland).
Free cash flow came in at a record EUR3,791 million - a rise of
31% and a three-fold increase compared to 2018 - with a free cash
flow conversion ratio of 59% (versus 53% in 2021 and 31% in 2018).
This reflects strong growth in EBITDA and very good management of
operating working capital requirement (WCR), which represented 15
days' sales at end-December 2022 compared to 17 days' sales at
end-December 2021.
ROCE hit a new all-time high of 16.1% (versus 15.3% in 2021 and
10.7% in 2018), resulting in strong value creation for our
shareholders, exceeding or meeting the 12%-15% objective in all our
segments.
Investments in securities of controlled companies net of debt
acquired totaled EUR3,684 million (versus EUR1,319 million in
2021), primarily reflecting the acquisition of GCP in construction
chemicals - but also Impac in Mexico, Matchem and Brasprefer in
Brazil, Urumix in Uruguay, and IDP Chemicals in Egypt - as well as
Kaycan in exterior products in North America and Rockwool India Pvt
Ltd. in insulation in India. In total, acquisitions made by the
Group in 2022 represent approximately EUR1.9 billion in full-year
sales and approximately EUR300 million in EBITDA.
Divestments totaled EUR501 million, corresponding essentially to
the sale of specialized distribution activities in the UK, Crystals
& Detectors and ceramics for the steel market.
Net debt was EUR8.2 billion. Net debt as a percentage of
consolidated equity was stable at 35% at December 31, 2022. The net
debt to EBITDA ratio also remained stable year-on-year at 1.2, half
its end-2018 level.
Attractive shareholder return policy
In 2022, Saint-Gobain returned a record EUR1.35 billion to its
shareholders, representing a total yield of 5.8% based on its
closing share price at December 31, 2022 (EUR45.65):
- Around EUR 835 million was paid by the Group to its
shareholders in respect of the dividend for 2021;
- EUR520 million was allocated for share buybacks in 2022 (net
of offsetting employee share creation) in order to reduce the
number of shares outstanding to 511 million at December 31, 2022
from 521 million at December 31, 2021.
In 2023, the Group plans to return over EUR1.4 billion in total
to shareholders:
- At today's meeting, Saint-Gobain's Board of Directors decided
to recommend to the Shareholders' Meeting on June 8, 2023 a cash
dividend up 23% to EUR2.00 per share for 2022 (versus EUR1.63 in
2021). This dividend represents 31% of recurring net income.
The ex-dividend date has been set at June 12 and the dividend
will be paid on June 14, 2023;
- The Group will allocate at least EUR400 million for share
buybacks in 2023 (net of offsetting employee share creation) - in
order to further reduce the number of its outstanding shares - in
line with the objectives set out in its "Grow & Impact"
plan.
2023 outlook and strategic priorities
In an uncertain geopolitical and macroeconomic environment, the
Group will continue to outperform its markets thanks to the
pertinence of its strategic positioning at the heart of energy and
decarbonization challenges.
In 2023 the Group's focus will be on consolidating its high
operating performance level, supported by its resilience and
ability to swiftly adapt to local market developments. Action plans
are overseen by country CEOs in order to optimize in real time
their P&Ls in terms of sales prices, fixed and variable costs,
or production capacities.
Saint-Gobain expects a moderate slowdown in its markets in 2023,
with contrasting trends: a decline in new construction in certain
regions but good resilience overall in renovation:
- Europe: resilience in renovation while new construction
slows;
- Americas: slowdown in new construction, partly mitigated by
demand on the renovation market;
- Asia-Pacific: good growth in most countries;
- High Performance Solutions: good momentum supported by ongoing
improvement in automotive.
Against this backdrop, in 2023 the Group will continue to
implement the strategic priorities set out in its "Grow &
Impact" plan for 2021-2025:
1) Consolidate our initiatives focused on profitability and
performance: maintain a very good operating margin level and strong
free cash flow generation
- Constant focus on the price-cost spread;
- Productivity initiatives and swift adjustments of fixed and
variable costs where necessary;
- Maintaining an optimized operating working capital requirement
while ensuring a good level of inventories to best serve
customers;
- Capital expenditure of just over 4% of sales, consistent with
the Group's objective of between 3.5% and 4.5% of sales, with
strict allocation to high-growth markets.
2) Outperform our markets and continue to strengthen our
profitable growth profile
- Enrich our comprehensive range of integrated, differentiated
and innovative solutions offering sustainability and
performance;
- Continue our targeted acquisition and divestment dynamic, and
benefit from the integration of recent acquisitions.
3) Accelerate our engagement in building a carbon-neutral
economy
- Enrich our positive-impact and low-carbon solutions;
- Accelerate decarbonization across the value chain:
optimization of manufacturing processes, development of the
circular economy, partnerships in renewable energies and ESG
emissions reduction roadmaps at our suppliers and partners.
Amid a moderate market slowdown,
in 2023 Saint-Gobain is targeting an operating margin of between 9% and 11%,
in line with the "Grow & Impact" strategic plan target
Financial calendar
An information meeting for analysts and investors will be held
at 8:30am (GMT +1) on February 24, 2023 and will be streamed live
on Saint-Gobain's website: www.saint-gobain.com
- Sales for the first quarter of 2023: Thursday April 27, 2023,
after close of trading on the Paris stock exchange.
- First-half 2023 results: Wednesday July 26, 2023, after close
of trading on the Paris stock exchange.
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 in 2022.
- 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.
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, 2022, available by clicking
here :
https://www.saint-gobain.com/en/news/full-year-2022-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 2022 financial report, both documents being available on
Saint-Gobain's website ( 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 .
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END
ACSNKNBKOBKDQBB
(END) Dow Jones Newswires
February 23, 2023 12:05 ET (17:05 GMT)
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