Saint-Gobain: 2013 Investor Meeting - Medium-term Strategy PR Newswire PARIS, November 27, 2013 PARIS, November 27, 2013 /PRNewswire/ -- Today, Saint-Gobain held a meeting for investors and financial analysts to discuss its medium-term strategy. Three pillars help drive the Group's strategy The Group's priority is to focus on high-growth, high value-added markets in habitat and industry. oInnovative Materials constitute the locomotive of innovation of the Group, in particular thanks to their diversified markets in sustainable habitat and high-tech industrial applications, increasingly co-developed with our customers; oConstructionProducts - whose differentiation versus commodity products continues to progress - are seeing their markets grow faster than GDP per capita in both mature and emerging countries. With leadership positions and strong brands, Construction Products have a balanced global presence and spearhead the Group's drive into newly emerging markets; oBuilding Distribution with its deep knowledge of local markets, ingrained culture of customer focus and well-recognized brands, holds top-ranking positions on the growing renovation market and provides a strong accelerator for the Habitat strategy. 2013-2018 strategy Saint-Gobain will continue to roll out its strategy over the next five years, focusing on three main areas: oImproving the Group's growth potential by focusing more sharply on high value-added, asset-light activities; expanding its footprint in emerging countries; and further strengthening its business portfolio, particularly through the disposal of Verallia; oCreating a stronger presence in differentiated products and solutions, with R&D efforts focused on local projects co-developed with its customers and on the fast-growing markets of sustainable habitat and industrial applications. Marketing initiatives will also be stepped up with an ambitious digital strategy and by the development of ever stronger brands; oContinuing to work towards management's priorities of achieving operational excellence, with an additional cost savings plan over 2014-2015; further progress in Corporate Social Responsibility; attractive returns for shareholders; and a persistently solid financial structure. This vision for Saint-Gobain development going forward is based on strategic leadership positions that will allow the Group to create value for its shareholders and be one of the strongest and best-positioned companies in materials and construction technologies. 2013-2018 strategic goals For each of these strategic focuses, the Group has set itself the following goals over the next five years: 1.Strengthen the Group's profile to raise its potential for organic growth: 2.Reduce capital intensity in developed countries to 27%-29% 3.Focus investments outside Western Europe so that two-thirds of Innovative Materials and Construction Products industrial assets are located there 4.Complete the Group's business refocus by disposing of Verallia and stepping up small or mid-scale acquisitions: €4bn in acquisitions 5.Focus Building Distribution development on leadership positions 1.Increase the Group's focus on differentiation: 2.Concentrate R&D and marketing on local, co-developed innovations: +50% co-developments and partnerships 3.Improve internal differentiation ratio (to reach 53% of Group sales) and new solutions ratio (target 30% of Innovative Materials and Construction Products sales) 4.Step up development on highly innovative industrial markets to reach between €750m and €1bn in additional sales in new High-Performance Materials niche segments 5.Boost market demand for higher value-added solutions by supporting sustainable construction 6.Enhance the Group's online offer to reach over €1.5bn of sales, or 15% of Building Distribution sales, on the relevant markets in 2018, versus 5% currently 7.Better associate the Group's brands with innovation, with a 5 point increase in average brand awareness 1.Continue to work towards management's priorities: 2.Continuously seek operational excellence: €800m in additional cost savings in 2014-2015 3.Make further progress in the Corporate Social Responsibility area 4.Target attractive returns for shareholders 5.Maintain a solid financial structure Discover all of the presentations on http://www.saint-gobain.com from 2:30pm onwards. About Saint-Gobain Saint-Gobain, the world leader in habitat markets, designs, manufactures and distributes high-performance building materials, bringing innovative solutions to meet today's global challenges, including growth, energy and the environment. With 2012 sales of €43.2 billion, Saint-Gobain operates in 64 countries and has nearly 193,000 employees. For more information about Saint-Gobain, please visithttp://www.saint-gobain.com. Analyst/Investor relations Gaetano TERRASINI Vivien DARDEL Alexandra BAUBIGEAT +33-1-47-62-32-52 +33-1-47-62-44-29 +33-1-47-62-30-93 Press relations Sophie CHEVALLON Susanne TRABITZSCH +33-1-47-62-30-48 +33-1-47-62-43-25 SOURCE Saint-Gobain
Saint-Gobain: 2013 Investor Meeting - Medium-term Strategy
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