Compagnie de Saint-Gobain S.A.

Good evening, everybody. I hope that you have received our press release and that you have been able to go through the highlights. So, together with Maud, our CFO, we will present our Q1 2026 sales performance. BankBank sales decreased 2.3% in Q1 in local currencies and also like-for-like, with good performance. given the unfavorable weather conditions in January and February in North America and in Europe. We delivered strong growth in Asia Pacific at 9% in local currencies. Europe was nearly stable and the Americas decreased as expected due to weather effects and the weakness also in new construction. The geopolitical situation has changed since our full year results at the end of February. I remind everyone that our Middle East presence is limited to 1% of good sales. Our priority has and continues to be the safety of our teams in the region. Since the start of the conflict, the raw materials and energy environment has become inflationary. We know how to manage this as we have done it very well in recent years. and we are confident to deliver a slightly positive price-cost spread for 2026 as planned. Our commercial teams and our key account managers are present with our customers, supporting them to be more than ever their partner of choice, limiting also the volatility that our customers experience. Our objective is to continue to deliver on the margin for the group while strengthening customer satisfaction and intimacy for long-term loyalty and our performance for Saint-Gobain. We have a very solid and seasoned supply chain organization combining the local nature of our business and also our global purchasing capabilities. Our R&D capabilities allow us to adapt formulations and use our large-scale footprint as needed. Of course, each crisis and situation is different, but you have seen how we manage it in 21-22. We are thus well-placed to manage inflation and supply chain, and I'm confident to continue to outperform in such a changing environment. We have no crystal ball on how long the Middle East conflict will last and its impact on the macroeconomic environment. So far, we have not seen any significant impact on demand overall, and we are confident about the structural needs and megatrends that underpin the strategic direction of our plan lead and grow. We will continue to focus on delivering our strategic objectives of lead and grow, looking for opportunities across our broad geographical footprint, driving our performance thanks to our competitive advantages, being proactive also in terms of cost, and continuing to focus on our growth priorities. You know them, deepening our solutions offering, expanding in non-residential and infrastructure, and continuing to optimize our portfolio. Indeed, we have taken further steps to enhance our portfolio in the first quarter with three Bolton acquisitions in construction chemicals. We continue to see a strong dynamic in this area, one of our target areas for growth investment, as you know. In Q1, we are performing construction chemicals with 4.3% growth in local currencies and organic growth of plus 1.7%. On the portfolio, we have also announced the divestment of our ventilation distribution business in the Nordics. We will continue, as we told you end of February already, we will continue to be active on both acquisitions and divestments in line with our target of more than 20% portfolio rotation between 2026 and 2030. I now hand over to Maud, who will discuss our first quarter sales in more details.

Thank you Benoit and good evening everyone. I'm pleased to give you some more details on our Q1 sales release and starting with Q1 sales growth. As usual, let's get first the technical effects covered off. In Q1, we had a negative currency effect of minus 2.6% due to the depreciation of the US dollar and Asian currencies against the Euro. Based on spot rates, we expect Q2 foreign exchange to be slightly negative and therefore H1 to remain negative. The effect of profit is much more significant. But remember that foreign exchange is purely a translation effect for Saint-Gobain. Sales were down 2.3% in Q1 in local currencies and like-for-like, a smaller decrease than expected. March was better than expected, not easy to read, but likely thanks to a good catch-up in regions affected by adverse weather in January and February, and also in anticipation of price increases. The scope effect was neutral for the quarter, with the impact of phosphoric and ceramics acquisitions in construction chemicals offset by our continued portfolio rotation streamlining, divestments of distribution businesses in Belgium and Brazil, and dry mortars and off-site construction in Germany. We saw a continuation of Q4 volume trends, but with North America and Europe impacted by the unfavorable weather conditions in January and February. Growth in local currencies accelerated in Asia-Pacific to 9%. Prices were stable at group level with a high comparison basis in the Americas in the context of a flattish inflation environment in January and February. And given the conflict in the Middle East, we now expect raw materials and energy inflation for 2026. Our commercial teams, as Benoit said, are on the ground with our customers, country by country, pushing for price increases needed. And it's a strong attribute of Saint-Gobain to know how to deliver on pricing while supporting our customers through a time of volatility. We currently expect around mid-single-digit inflation on our $12 billion energy, transportation, and raw materials bill for the full year. we remain confident to deliver a slight positive price-cost spread for the full year. Now, on energy specifically, I would add that we are much less energy intensive than some may think, with an energy bill below 4% of group sales, around half electricity and half gas. So our gas bill represents less than 2% of group sales. We are well-hedged for this year and beyond. And in volatile times, we like to be hedged around 75%, and this is a good indication for this year, including Q2. Now, let us look by segment. Sales in Europe were down 0.9%, like for life in Q1, resilient, despite the unusual weather conditions in January and February. Northern Europe was down 1.7%, like for like, with different trends from one country to another, and starting with Eastern Europe, which saw good growth, driven by Poland and the Czech Republic, especially in industrial solutions and light construction. Activity remained mixed in the Nordics, not helped by the negative weather conditions, and the UK started the year down in a soft market. Germany saw good growth in construction chemicals but decreased overall, and this was due to restructuring measures taken in 2025 to optimize our platform for growth. Turning now to Southern Europe, which was stable over the quarter. We continued to outperform in France thanks to the success of our solution strategy supported by AI tools, which are accelerating cross-selling and specified sales. As a result, sales in France were down only 0.8% light for light, despite the record rainfall and flooding in January and February. And new construction continued to grow with good advanced indicators. Pay in Italy grew slightly, once again driven by market share gains in interior solutions. We specified complete solutions for the renovation of the Kachina-Monloué historic buildings in Milan, bringing energy efficiency and comfort benefits for occupants. The Middle East and Africa region was stable over the quarter, where Turkey was strong, but the Middle East itself was affected by the conflict. Moving on to the Americas. The Americas region saw a 7% decrease in volumes, similar to Q4 2025, despite the unfavorable weather conditions in North America. The price effect was down 1.5% against a high comparison basis. Starting with North America, was down 11.3% like for like, continuing the volume trend seen in Q4. Activity in March picked up after a slow start to the year due to the harsh winter. New construction remained weak. Q1 was also affected by a high comparison basis, given that H1 2025 benefited from roofing demand linked to 2024 storms. Pricing was down in Q1 on a high comparison basis. As Q1 2025, so price increases at the start of the year. Price increases were implemented as planned in April across different product categories. We saw growth and further market share gains in construction chemicals. And lastly, I'll just highlight one interesting example of non-residential solutions. Our North American teams are specifying solutions for 180 data centers projects currently versus 80 last years. We bring construction speed, safety, resilience, sustainability, and performance to these customers in particular. Latin America now decreased 1.6% like for like. We saw volume growth but lower pricing given the adjustments due to the drop in energy costs in Q1. we are methodically rolling out our solutions offering country by country and final market. From individual and multifamily residential, through hotels, health and education facilities, to transport and mining infrastructure, as well as data centers. We continue to gain market share in Brazil in light construction and construction chemicals. Mexico and Central America are benefiting from the success of Cemex which again grew double digit. Lastly, moving to Asia Pacific which grew 9% in local currencies and 7% like for like in Q1. All main countries grew as well as industrial solutions where the group is very well positioned in terms of value added and innovation. India delivered another strong performance with double-digit volume growth and market share gains, driven by its complete, innovative, and sustainable solutions. We won new projects in non-residential and infrastructure, for example, the Pune Metro or the high-speed train line between Mumbai and Ahmedabad, thanks notably to fast-track in construction chemicals. We have developed as well an AI-augmented technology vendor program to enhance product expertise and accelerate cross-selling. Southeast Asia continued to be dynamic, benefiting from the widening of its specified brands, especially for infrastructure projects, such as the Changi Airport in Singapore and data centers. Vietnam has launched the first zero-carbon production of cement boards, scope one and two, using biomass and renewable electricity. Australia returned to growth in an improving new construction market, benefiting from its expanded solutions offering, and China continued the good growth trends seen since H2 2025. So to sum up Q1, sales were down 2.3% in local currencies and like-for-like with a better month of March. Given the more inflationary environment due to the Middle East conflict, We have been pushing for price increases that will materialize over Q2 with additional price increases tailored to the evolution of the situation and full realization in H2. We are confident that we will deliver a slight positive spread for the year. And, of course, we remain focused on continuing to deliver strong operational performance. Benoit, I now hand it over to you for the conclusion.

Thank you, Maud. A few comments. So, you know, we drive the business for profitable growth. In an uncertain macroeconomic and geopolitical backdrop, we are well positioned to deliver a strong performance. We have a balanced footprint with hopefully one-third of our results coming from each of North America, Western Europe, and Asia emerging markets. This is a real strength. It gives us the ability to capture growth opportunities in multiple geographies. There are clear structural needs and strong megatrends in construction across multiple end markets and geographies, and I'm confident that we have the right local business model to thrive and to overcome any external shock. Our country CEOs are proactive and hands-on. very experienced also, and focused on a small set of priorities, pricing, cost management, and our performance. So we confirm our 2026 outlook in a contrasted macroeconomic and uncertain geopolitical landscape. The group expects an EBITDA margin of more than 15% in 2026, with the first half affected by the extreme weather conditions at the start of the year in Europe and in North America. Thank you for your attention. And now, Maud and I are happy to answer any question you may have.