Compagnie de Saint-Gobain S.A.

Good morning. It is my pleasure today to present our 2025 results together with Maud Thiodet, our CFO. Once again, we delivered a very strong performance in 2025. 2025 was the last year of our growth and impact plan, which has been a very clear success. We have demonstrated our capacity to execute year after year and deliver on strategic initiatives, value creation, margin and cash. Saint-Gobain has now an attractive business profile thanks to our decisive portfolio optimization, which will, of course, will continue. We have positioned Sangoba as the leader in sustainable construction, and we have achieved all the financial targets that we had set at our 2021 Capital Markets Day. Here are a few examples of Sangoba solutions being used around the world in iconic residential or non-residential buildings, such as this inspiring resort in Saudi Arabia. On infrastructure also, we have provided, for instance, 17 solutions at the new Noida airport in Delhi, in India, bringing clear benefits in terms of climate resilience, regulatory compliance, and fire safety. In 2025, our teams have once again delivered very well against very different market backdrops. Europe improved in the second half, returning to growth in North America. As expected, we outperformed and we delivered a broadly stable margin in the second half. In Asia and emerging markets, we delivered strong growth, up 12.6% in local currencies. And finally, we have taken new strategic steps in construction chemicals, with CEMIX and FOSROC acquisitions in particular, achieving almost 16% sales growth in local currencies. Let me congratulate and thank very warmly all our talented and very engaged teams all around the world. Now, moving to our financials, in 2025, we have delivered a strong set of results despite constructed markets. Growth in sales, up 2.1% in local currencies, with over-proportional growth in profit, both EBITDA and operating income, a robust 3.3 billion euros recurring net income, and a 4.5% increase for our proposed dividend, at 2.3 euros per share. We also continue to deliver strongly on free cash flow with a 58% conversion ratio. So a very strong set of results and very, very strong execution. Now, Maude, the floor is yours to go through all the financial metrics.

Thank you very much, Benoît. Good morning to all of you and I'm very happy to share with you our strong 2025 results this morning. I'll start with the top line. We achieved sales growth of 2.1% in local currencies. On a like-for-like basis, sales were virtually stable. They were supported in H2 by good growth in Asia Pacific and Latin America, a return to growth in Europe despite the decline in North America. Volumes were down 1.3% over the year, reflecting these mixed market trends by geography. Prices were up 0.8%, and with a positive 0.7% effect in H2 in a softer inflationary environment, inflation was broadly stable in H2. This actually reflects the added value of our solutions and disciplined execution from our local teams. Currency effect was minus 2.3% for the year. It became more negative at minus 3% in H2 with the depreciation of most currencies against the euro. And we expect similar impact in Q1 2026 of around minus 3% on sales. We had a positive scope impact of 2.6% reflecting our continued portfolio rotation and in particular Cemix, Fosrock, Bailey and CSR. Regarding operating income and margins, we delivered Overproportional operating income growth up 3.8% in local currencies and slightly up like for like. We were able to deliver a stable operating margin despite the environment and the negative currency impact. This was driven by our ability to proactively adapt our operations throughout 2025 as market conditions shifted from our initial scenario. we had a greater impact from FX on the operating income at minus close to 4%, close to double the impact on sales. This is because the depreciation versus the euro was particularly seen in regions where the margins are above the group's average. This strong margin performance reflects a very good operating performance, including a slight positive price-cost spread. Moving now to EBITDA and EPS. EBITDA rose 3.4% in local currencies with the EBITDA margin stable at 15.5%. Non-operating costs remained below our group guidance of around 250 million euros on average per year. And then as explained in July, there were more in H2 than in H1. Net financial expense was up, reflecting the rise in gross debt and less interest earned on cash placement. The tax rate on recurring net income was stable at 24%. Last, EPS increased 2.5% and 6.4% in local currencies. Now looking at cash and balance sheet. We generated free cash flows of 3.8 billion euros with a cash conversion ratio of 58% above our target of 50%. We continue to dynamically optimize the operating working capital, reducing by one day to 11 day sales at the end of 2025, despite the dilutive effect of our portfolio rotation. And in terms of capex, we remain stable at around 4.5% of sales and plan for the same this year. We also maintain in 2025 a strong financial discipline and a strong balance sheet. Our net debt to EBITDA ratio was stable at 1.4 times. And we made clear capital allocation decisions toward value creation for our shareholders, with notably 95% of our growth investment, either through growth capex and M&A, put in our high growth markets, and 1.5 billion euros returned to our shareholders through dividends and share buybacks. Now let us look at the results by region and I'll start with Europe overall where we saw a return to sales and operating margin growth in the second half. Sales were up 1.1% in local currencies and up 0.6% like for like. The margin held up well despite the lower sales in H1 driven by firm price and cost management. In terms of local dynamics in Northern Europe, a contrasted situation from one country to the other, with the UK reporting further growth with a strong outperformance thanks to our specified sales and our full solutions offering in the country. Eastern Europe was slightly up, even if Poland was impacted by weaker industrial solutions. Germany remained down, ahead of the stimulus plan in a wait-and-see attitude. And the Nordics remained mixed overall, but we won several large infrastructure projects there. Lastly, it's worth noting that we are well placed to capitalize on major infrastructure and defense spending in Central and Eastern Europe, thanks to a network of 100 plants and representing over 10% of our sales of the group sales. Now moving to Southern Europe, Middle East and Africa, we improved noticeably because in the second half sales were up 1.7%. In a market that remains uncertain, France stabilized in the second half and reported growth in the fourth quarter, driven by the rise in permits and housing starts, which should continue to support new construction. We outperformed the market in both new construction and renovation. Spain and Italy continued to show growth, with particular market share gains in interior solutions, and the Middle East and Africa achieved double-digit growth supported by the successful integration of FOSROC in construction chemicals and major infrastructure projects in Saudi Arabia and Abu Dhabi. Moving now to the Americas, sales in North America were down 4.2% over the year and by 7.3% in H2 with Q4 down 8.2%. US roofing volumes remained low as expected in Q4, down 17% given the lack of major weather events. The new construction market was down, impacting interior solutions, but construction chemicals accelerated throughout the year with market share gains. Despite this challenging environment, our North American teams outperformed the market and delivered a very good operating performance, maintaining a positive price effect and optimizing production, cost, and industrial plant maintenance. As a result, margins held firm for the full year and in the second half. Latin America delivered a strong performance, up 13.5% in local currencies and 6.9% like for like. Growth was slower in H2 on a tougher comparison basis and with prices slowing at the end of the year due to lower energy costs. The integration of Cemex in construction chemicals has been a great success with 15% growth in local currencies and clear spillover effect in Central America for the full Saint-Gobain solutions offer. The Americas region delivered a slight increase in its operating margin over the year to 17.2% and held firm at 16% in H2, as we said last October. Turning lastly to Asia-Pacific, which delivered 17% growth in local currencies and 2.4% like for like. The operating margin reached a record supported by volume growth and good pricing management. India saw double-digit growth and further market share gains with our comprehensive range of solutions. We were awarded new projects in non-residential and infrastructure with increased share of wallet thanks to our leadership in construction chemicals and the successful integration of FOSROC. Southeast Asia saw growth with a widened range of specified solutions and the delivery of 20 data centers in Indonesia and Malaysia during the year. The integration of CSR is going well both in operational performance and in the enhancement of the solutions offering for the local market. The Australian construction market remains lackluster, but leading indicators are improving. And last, China was down slightly over the year, but progressed in H2 with market share gains despite continued market weakness. So in a nutshell for Saint-Gobain, 2025 was a strong year focused on discipline and execution despite the contrasted environment. And for 2026, I can tell you that all the teams are fully committed. Priorities are crystal clear, high performance, margin, cash, portfolio rotation, and we are all set to deliver. Benoit, I leave it to you for the conclusion.

Thank you, Maud. Let me now update you on our strategy. Saint-Gobain is opening a very exciting new chapter with our strategic plan, Lead & Grow, that we announced at our Capital Markets Day last October. We benefit from strong supportive megatrends in sustainable construction, population growth and urbanization, notably in Asia and emerging countries, job site productivity and energy efficiency renovation, notably in Europe, and the adaptation of buildings and infrastructure to extreme weather, especially in North America. We have an unmatched breadth of addressable markets across residential, non-residential and infrastructure, totaling 500 billion euros. And to capture this, we are rolling out a value-enhancing solutions approach and leveraging the well-established growth compounding country platforms. Let's start with our solutions. We are the only provider of a comprehensive solutions set delivering performance and sustainability. We have everything for buildings and infrastructure from roofing to facades, flooring, partitions, ceilings, and so on. And our solutions bring thermal, acoustic, air quality, visual performance, and even productivity benefits for job sites. This is altogether a very crucial competitive advantage for Saint-Gobain. A key part of lead and grow relies on our expansion of these solutions into non-residential and infrastructure markets where we have many growth opportunities and where we can tailor and specify our technical solutions segment by segment. If I take the hospital segment, for instance, where hygiene, safety, air quality, comfort are crucial, we have a full range of air, including easy-to-clean floors and ceilings, X-ray protection plasterboard, antibacterial wall finishings, and so on. We provide technical support in high-performance and code-compliant materials, and we have dedicated local teams for the healthcare market. Similarly, data centers have their own specific requirements centered around construction speed, thermal performance, fire safety, sustainable construction. And here also, we have a full catalog of technical, specific, what we call hero products that address these needs. With our global key account management, we are currently working on an active pipeline of more than 600 data center projects in 26 countries around the world. In infrastructure, airports have their own specific requirements in terms of customer experience, regulatory compliance, and climate resilience. We have also tailored comprehensive solutions to address both the billings, which on average is 60% of a capex for an airport, and the infrastructure parts of airports. As you know, we are growing fast on infrastructure thanks to our attractive leadership in construction chemicals, which has been a very dynamic build-up in the last years. Our 6.5 billion euros leading platform across 76 countries can address all critical parts of infrastructure and buildings. As we highlighted at our Capital Markets Day, we plan to continue our acquisitions and also our capex to reach more than 9 billion euros of sales by 2030 on construction chemicals. This is a bit of a highlight by segment. Now let's look at how we deploy our solutions by region. In Europe, we see improving leading indicators with strong commitments from government, even the EU level, to address the housing crisis. Also, some rising affordability and better housing starts. On the renovation side and energy efficiency, we see policies supportive of energy efficient renovation and green value is increasingly reflected in real estate prices. We are well placed to benefit from these improving lending indicators thanks to our solutions approach across the board that brings share of wallet, cross-selling and margin benefits for Saint-Gobain. We also have very attractive digital solutions. One example is for architects on Facade specification where the clear leader The second one, as a go-to partner for thousands of craftsmens in France, we have a full suite of digital tools enhanced by AI that bring to them speed and value on quotes, regulations, invoices, deliveries, and therefore attractive stickiness and loyalty of those contractors to Saint-Gobain. In North America now, we work also on strong contractor engagement and loyalty to drive and enhance our brand reputation across our multiple products and solutions offer. We have a number one position in North America on interior and exterior solutions. This allows us to further roll out cross-selling actions And more importantly, to build up and strengthen win-win partnerships with the top national distributors across the country. In North America, we are the best player to address the increasingly extreme weather conditions with the most comprehensive climate resilient offer on the market. But the core of that offer is our leadership in roofing across U.S. and Canada. And I'm convinced that it will continue to benefit from strong fundamentals. Although, as we know, the 2025 storm season was unusually calm with no hurricanes for the first time in 10 years, there is an increasing number of extreme climate events in the U.S. Second, more than 12 million homes built in the early years of 2000 need renovation, aging of the roof. And third, we have this structural housing shortage that persists in the U.S. and in Canada. To build up on that momentum and the strong fundamental drivers of roofing, we are replacing a nearly 50-year-old line with a modern, highly competitive roofing capacity in the undersupplied region in the southeast. Altogether, I'm confident that this positions us all together on climate resilient offer, including, of course, roofing, to outperform and continue to outperform in North America, like we have demonstrated again last year, as one of the only three meaningful national players in roofing in North America. In North America, we are also expanding in non-residential and infrastructure. We are well positioned to serve fast-growing segments such as data centers, airports. I mentioned hospitals a bit earlier on. We have dedicated sales teams, and we differentiate with highly technical products like our Sage electrochromic glass. We are the only one in the world to provide that. That has been specified in 29 U.S. airports over the last two years. Altogether, I'm confident about the structural growth drivers and outperformance of Sangoba in North America and what will continue to grow in North America across the board in the coming years. Let's now look at how we are deploying our solutions in Asia and emerging countries, a very important profit pool and growth pool for Sangoba. In India, we are the undisputed number one on buildings, and we are expanding on infrastructure. Already 200 major infrastructure projects in 25. In Southeast Asia, we systematically complete our offshore country by country. And we differentiate, like in China, differentiate ourselves with high value-added solutions that represent 45% of ourselves, which brings good resilience and margin also in China. In this region, we are significantly increasing our penetration on non-residential markets also through specification. Take the fast-growing hospitality market in the Middle East. We are very well placed to service this market with our leadership positions in the Middle East and Turkey. In Mexico, nearly 30% of our sales stand for specification, and we are leveraging our widened offer, including our construction chemicals offer, thanks to the very strong profitable Cemix acquisition. So this is the view by region, after the view by segment. And as you know, to roll out our strategy, of course, quality of execution, which we have demonstrated day in, day out in the last five to six years, quality of execution is crucial. And this is what we have delivered consistently and will continue to do so. We benefit from our country-led operating model, which is well suited to our markets, of course, but well suited as well to our current geopolitical environment. This Saint-Gobain operating model has been tested and proven with proactive and empowered CEOs very close to their teams and customers. We work on all levers, commercial excellence. I highlighted quite a lot of examples by systematically tracking the rollout of our solutions. margin by proactively driving cost and productivity gains as well as positive price-cost spread based on the value that our solutions bring to our customers and cash of course this operating model by country is a great growth and value creation compounder for sangam A few examples of what we have done in the last year. Take, for example, North America, where our teams have increased our sales by 60% since 2019. Mexico, India, the Middle East, which are meaningful size for Sangoba, not only in sales, but of course in profit, where we have more than doubled our turnover over the same period. And in all these countries, Sangoba has significantly outperformed the markets. As you know, one of the very strong pillars of lead and grow is, like we have done in the past, our ongoing portfolio optimization that has brought a lot of successes. So we continue to actively steer our portfolio optimization. I'm happy to say that the integrations of FOSROC and CEMIC in construction chemicals are going very well, with 11% organic sales growth in local currencies and 20% combined EBITDA margin. We have created a lot of value in the past acquisitions, such as CREZO, GCP, and Continental, and we are on track to deliver value for our most recent acquisitions. In 2025, we rotated 1.2 billion euros of sales and our country platforms are nurturing an active pipeline as we speak. As you know, we intend to rotate through acquisitions and disposals more than 20% of our sales by 2030, keeping a strong value and continue to work, of course, on the value creation for our shareholders. Indeed, our strategy is delivering attractive shareholder returns. In 2025, total return to our shareholders from dividends and share buybacks amounted to 1.5 billion euros. If I take the last five years, we have returned over 7 billion euros to our shareholders. In 2026, the board that we had yesterday will propose to the AGM a dividend of 2.3 euros per share. Shareholder returns will continue to be a very important part of our capital allocation framework. From 26 to 2030, we plan buybacks of around 2 billion euros and dividends of around 6 billion euros, so 8 billion euros altogether for our shareholders. Now, let me finish and turn to our outlook. You can see our expectations for each geography here on the slide. In a contrasted macroeconomic environment and still uncertain geopolitical landscape, Sangoba expects an EBITDA margin of more than 15% in 2026, with the first half affected by the extreme weather conditions in Europe and North America that we have seen since the start of the year. As a conclusion, we have established a very strong track record over the last five years. Lead and grow gives us a very exciting and very powerful roadmap, very clear for the teams, for the customers, for the shareholders over the next five years. deepening our value enhancing solutions, expanding them across non-residential and infrastructure, and second, sharpening the group's business profile through portfolio rotation. All this being delivered with ongoing excellence in execution supported by our proven operating platform country by country. So I'm very confident that all this will continue to deliver Strong momentum, strong value creation for all our stakeholders. Thank you very much. And we now turn to your questions for Maud and myself. As always, we start with the questions in the room, and then we will go on the call on internet. So Elodie wants to...