Saint-Gobain: 2013 Investor Meeting - Medium-term Strategy

          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
  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%
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 from 2:30pm

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 visit

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