Compagnie de Saint-Gobain S.A.

Good morning. It is my pleasure today to present our first half 2026 results together with Maud Tiodé, our group CFO. Once again, we delivered a very strong performance in the first half. To show our lead and grow plan in action, as always, I start with a few examples of Saint-Gobain solutions being used around the world in iconic residential or non-residential buildings, such as this Brazilian medical center. Also, this airport in Singapore, where we leveraged our waterproofing solutions to enter early in the specification stage in the project and subsequently specified 12 other Saint-Gobain solutions, both in the building and on the runways. So, lead and grow in action very actively across the board. Now moving to our financials, we have delivered strong operational execution in H1 2026. Organic sale growth up 0.7%, strong EBITDA margin at 15.4%, robust 1.7 billion euros recurring net income, and also strong free cash flow with a 65% conversion ratio on EBITDA. In the first half of 2026, we have also delivered successfully on our key lead and grow strategic priorities. On outperformance, first, all regions have been growing strongly in the second quarter and have accelerated the rollout of their solutions in non-residential and infrastructure markets. Altogether, the group has delivered plus 3.5% organic growth in the second quarter. Second priority, we continue to invest in high-growth markets. Our construction chemicals solutions have strongly outperformed. You know it's a strategic priority as well. Strongly outperformed with 8.5% organic cell growth in the second quarter. And 13 out of our 14 new lines and plans have been opened in H1 in North America, in Asia and emerging markets. So very decisive and clear capital allocation on growth markets. And finally, As you have seen, we have moved decisively on M&A with 23 acquisitions and divestments being signed or closed in the first half with around 3 billion euros of sales rotated since the beginning of the year. That is one third already, one third of our sales rotation target of more than 20% by 2030. So altogether, I'm very pleased with both the strong operational and the strong strategic execution of the group in the first half of 2026, which bodes well for the rest of the year and for all our lead and grow plan for the next five years. I now leave the floor to Maud, who will take us through our financial metrics.

Thank you, Benoit. Good morning, everyone. I'd like to give you the details of our financial performance for the first half 2026. And I will start with the top line, where we achieved sales growth of 0.7%, like for like in H1. This was driven by a robust Q2 up 3.5%, like for like, with growth in all our regions. We saw strong growth in Asia-Pacific, up 7% like-for-like, a return to growth in Europe, up 4%, and positive like-for-like growth in the Americas. Prices were up 0.8% in H1, stable in Q1, and up 1.6% in Q2. thanks to the price increases and the transportation surcharges that we passed as the cost environment turned inflationary. This reflects again the value added of our solutions and the disciplined executions of our teams. As you know, the situation in the Middle East is volatile and changing day by day. We continue to expect mid-single-digit inflation on our 12 billion raw material, transportation and energy bill, but this is a moving target for 2026. Overall, we remain confident to deliver a slight positive price-cost spread for the full year. On energy specifically, I would highlight that our energy bill is below 4% of group sales, half gas, half electricity, and we are well hedged for the year and beyond, and for this year at 75% plus in 2026. The exchange rate impact was minus 1.3% in H1, including around minus 6% in North America and Asia. It turned slightly positive in Q2. For the structural impact, it was minus 0.5% in the first half, reflecting our active management of the group's profile. We have announced or closed divestments and acquisitions close to 3 billion euros year-to-date, with an accretive impact on the margins of 40 to 50 basis points on the full year basis. We are again strengthening the profile of the group, allocating capital to our investment priorities. Regarding EBITDA and margins, we delivered strong operational execution with an EBITDA margin of 15.4%. This benefited from the return to growth in Q2, Foreign exchange still had a negative impact in H1 as the regions most impacted by the depreciation versus the euro were North America and Asia and have higher margins than the group's average. Hence, there was a dilutive effect. Depreciation increased by 3% in H1 with the recent opening of new lines and plans. Now if I move to EPS, non-operating costs were similar in H1 2025 and we continue to expect a bit below 250 million euros average per year. The capital gain and losses line is particularly low this half but should improve once we close the dial divestment. Net financial expense was slightly down, with the decrease in gross debt. The tax rate on recurring net income was 25%, and lastly, EPS decreased 2.6% in local currencies. Let's look at cash now. We generated free cash flows of 2.1 billion euros in H1 with a cash conversion ratio of 65% on EBITDA and 125% on recurring net income. Operating working capital was stable at 24-day sales in June 2026, a very good level. CAPEX was at a similar level to last year and we expect it to remain around 2 billion euros for the full year. We maintain a strong financial discipline and a strong balance sheet. The net debt ratio is 1.6 times. We once again made disciplined capital allocation decisions. towards value creation for shareholders, with 1.4 billion euros returned to shareholders in H1, including 2,292 million euros of share buyback year-to-date, reflecting our opportunistic approach to our share buyback program. And around 90% of our growth capex and investment in M&A were deployed in high-growth markets. Return on capital employed over the first half reached 13.5% in local currencies impacted in actual terms by the foreign exchange. Now let's look at the results by region starting with Europe. Looking at Europe overall, we saw a return to growth in H1, with sales up 1.7% L4L. This was driven by Q2, with L4L growth of 4.1%, the strongest growth in the region since 2022. In terms of local dynamics, first starting with Northern Europe, we delivered 3.7% organic growth in Q2, driven by all countries, with the exception of the UK, which faced a softer market. Elsewhere, Nordic countries grew, also benefiting from the mix improvement with high-value-added solutions, Germany returned to growth, supported by good trends in insulation and light construction. And Northern Europe continued to outperform with double-digit growth in Poland and in the Czech Republic, including an additional 1% point achieved thanks to cross-selling by the teams. Now turning to Southern Europe, Middle East and Africa. which delivered 4.5% organic growth in Q2, driven by new construction, industrial solutions and market outperformance. We continued to outperform in France thanks to our large offer in terms of solutions and services. Spain and Italy grew with continued market share gains in interior solutions and construction markets. The Middle East achieved double-digit growth in Q2 with a strong performance from Turkey and all the tribute going to our exceptional teams in the region. In terms of margins, Europe were flat over the half and the start of the year was affected by unfavorable weather conditions, but balanced by return to growth in Q2 and good pricing and cost management. Moving to the Americas. North America saw 1.2% organic growth in Q2, a strong improvement compared to Q1 with the normalization of weather conditions. Despite new construction remaining down, volumes were driven by roofing, plasterboard, siding, and construction chemicals, where we continued to outperform strongly with double-digit growth. Prices increased slightly year on year in Q2 and sequentially the price increases led to more substantial improvements. Latin America decreased 1.3% like for like over H1 on a high comparison basis. The region saw slight volume growth but prices below last year given lower raw material and energy prices in H1. Prices were up in May and June, however, as the environment turned inflationary. If I look now in Brazil, new construction market is soft, but we continue to gain market share in light construction and construction chemicals. Mexico and Central America continue to benefit from the double-digit growth of CEMEX. Overall, the Americas region delivered an EBDA margin of 19.5%, stable versus H2 2025, as we expected. Turning lastly to Asia-Pacific, which grew 8.4% in local currencies and 7% like for like in H1, with growth in all our major countries as well as in industrial solutions. India once again delivered double-digit growth, volume growth and further market share gains thanks to our complete, innovative and sustainable offer. We participated to a number of infrastructure and non-residential projects thanks to our particularly well-fitted construction chemicals offer from FOSROC. Southeast Asia continued to show dynamic growth with double-digit growth in Vietnam, in Indonesia, and the Philippines. Australia saw growth accelerate in Q2 in an improving new construction market. We are benefiting there from our specification model. Last, in China, once again, we outperformed, continuing our growth since H2 2025. The ABDA margin for the region reached a record of 18.5%, supported by volume growth and good price and cost management. So to sum up, we delivered robust Q2 growth with positive like for like in all our regions. Operational performance was strong with good price realization. Our priorities from here are clear. Outperformance, margin, cash and disciplined capital allocation. We are fully committed to deliver value creation for shareholders. Now, Benoit, I turn it to you for the strategy.

Thank you, Maud. Let me now give you an update on our strategy. We are the only provider of comprehensive solutions delivering both performance and sustainability across all construction markets. This is a crucial competitive advantage. And our solutions, through a push and pull dynamic, deliver value for Saint-Gobain with cross-selling, upselling and specified sales that increase our share of wallet, our mix and our margin. We have also broadened our addressable markets to target 500 billion euros across residential, non-residential and infrastructure markets. And as you know, we systematically roll out our solutions across all Our geographies. So let's start with a look at Europe first. New build is improving, driven by better affordability since 2023. We see today strong improvements in housing starts across multiple countries. We also continue to see policies that are supportive for energy efficient renovation. And importantly, this is what you have at the bottom of the slide. Green value continues to increase up eight points on average, reflected in real estate overall prices. We are well positioned with our unique one-stop shop offer. We are the partner of choice for more than 400,000 craftsmen in France with, for example, a unique customer journey dedicated to energy efficiency performance upgrades. We track our solutions on added value products, 47% of sales in Germany, on specified sales, 37% in Czech Republic. Staying in Eastern Europe, you have seen that it's a very strong dynamic as we speak for us. So in Eastern Europe, cross-selling gains generated approximately 1% of additional growth in the first half. In Europe, we also leverage our full-range offer to expand in non-residential and infrastructure markets. Take schools, for instance. We know it was a very acute topic in the last weeks in France, but across Europe they have been severely disrupted by the successive heat waves in the recent weeks. We can decrease Indoor temperatures by at least 10 degrees during a heat wave, thanks to our full range building envelope offer for summer comfort, including solar controlled glass, cool roof waterproofing, attics and facade insulation, distribution digital services and so on. Once again, climate adaptation is an urgent need. The cost of inaction starts to escalate rapidly. So climate adaptation is growing in Europe and around the world. Saint-Gobain is there to deliver the best comprehensive offer. I now turn to North America, where we are the preferred partner for our customers in residential. Our strong leadership allows us to further roll out cross-selling actions. And I can tell you that having invested more than $8 billion in the last years makes us extremely credible in the eyes of this win-win partnership with the large distributors. With our full exterior solutions, we are the best player to address the increasingly extreme weather conditions in North America. We have, for instance, a differentiated offer, including our certainty integrity roof system that exceeds the fortified standards and can reduce insurance premium by at least 22%. So a very meaningful economic impact. As a result, we have a 7% increase in our contractor engagement program and strong brand loyalty across our multiple products. In North America, we are also expanding in non-residential and infrastructure markets. We are well positioned to serve fast-growing segments such as hospitals, data centers and airports. We have established strong dedicated offers and we differentiate with highly innovative solutions, not only on building materials, but for instance, like our cheap-level liquid-cooling tubes for data centers, very, very close to the processing units. As announced this week, we have also signed a framework agreement with Microsoft to help them accelerate the build-out of their data center footprint using the full set of group integrated solutions. On infrastructure, we will soon further enrich further our offer with the recently announced Xypex acquisition in crystalline waterproofing. Let's now turn to India, Southeast Asia, where we outperform with our solutions. We have delivered double-digit sales growth in local currencies in the first half in those geographies. In India, first, where we have the undisputed number one position on buildings. That has been the case for several years already. We are expanding fast on infrastructure, with our sales being multiplied by four times last year, thanks to our leadership in construction chemicals that we have acquired with Fosrock, delivering extremely well all together in India. In Southeast Asia, we have also delivered strong sales growth in H1, leveraging dedicated specification teams and catalogs on our priority and markets. Look at Australia, where we have a number one position in interior and exterior solutions with extremely strong and iconic brands and also a very strong key account management approach across architects, builders, contractors. And we leverage all this towards the full Saint-Gobain offer accelerating in Australia and New Zealand. In Mexico, we are also accelerating on cross-selling and specification with Cemix leading the way and continuing with a double-digit sale growth now for 18 months since the acquisition in early 2025. So I've gone through the first two pillars of Lean&Grow, which are the rollout of our solutions both across geographies and also end markets. Now, the third pillar of our strategic plan is to continue to optimize with determination the profitable growth profile of the group, which has created over the last years a lot of value for our shareholders. And we continue. We continue to actively steer our portfolio optimization. We have rotated around 3 billion euros of sales since the beginning of the year, of which 2.8 billion euros with divestments and a bit more than 200 million euros in acquisitions. We continue to build and work on a healthy pipeline of value creative acquisitions. And we are always very disciplined on capital allocation with the same clear priorities day in, day out. We invest on the higher growth regions in North America, Asia, emerging countries with 90% of our acquisitions and growth cappings being invested in those regions on the first half. And we invest on construction chemicals. This is our journey towards 9 billion euros of sales by 2030. So it's both a very strong performance on organic growth plus acquisitions with very attractive ones in the first half, such as Xypex in North America that I already mentioned, AGC Waterproofing in Japan that we have announced at the beginning of this week, and also Norteiros de Europa in Dominican Republic. You know that at the core of our value creation model, we have our country platforms with experienced and empowered country CEOs compounding profitable growth. Take, for example, North America, where our teams have increased ourselves by 60% since 2019. Mexico, Eastern Europe, India, Southeast Asia, where we have multiplied our turnover by 1.5 to more than two times over the same period. All our country CEOs, I can tell you, are committed to creating value and are performing our markets by rolling out operational excellence and the full offer, the full solutions offer to all their end markets. In order to do that, our country CEOs, they are helped by multiple group expertise platforms. One of them is on AI. We leverage on artificial intelligence, the group scale, expertise, master data. We have, being a very large organization, we have a lot of data. This is extremely important to train the LLMs. And we are rapidly rolling out our advanced purpose-built AI solutions that create a significant competitive advantage for the group. In distribution, we are multiplying our sales opportunities with very fast, automated quotes. You know, it's a big job within a sales outlet to answer quotes for the craftsmen, and the faster you answer, the higher the chance for the craftsmen to win the ultimate job. This is what we call internally our Devigo solution, enhancing customer experience and salespeople productivity for, at the end, a larger average basket Saving time, so they have time to work on something else and follow up with customers, so increasing customer intimacy and also better mix in terms of sales. We also rely on in-house AI tools to increase the conversion rate of our specification sales. On R&D, another example, we leverage AI to substantially increase material discovery and time to market up to 40%. And in our plans on manufacturing, we roll out tailor-made AI tools to increase efficiency. For instance, when you have a changeover from product A to product B in manufacturing, you can use AI quite a lot. And of course, we are generalizing the use of AI tools across all support functions to boost the group efficiency. Let's now turn to outlook for the rest of the year. You can see our expectations for each geography with overall like-for-like sales growth in the second half. Europe, growth with contrasted trends by country. America's growth in an uncertain environment. And Asia-Pacific growth led notably by India We expect an EBITDA margin of more than 15% in 2026. To conclude, we are well on track to succeed in our Lead and Grow strategy, leveraging on our 2026 momentum. Lille & Gros gives us a very powerful roadmap for the next four and a half years. First, deepening and enriching our value and enhancing solutions and expanding them across non-residential and infrastructure markets where we have a lot of market share still to gain. We have seen the momentum in the first half already. And second, sharpening constantly the group's business profile through active and value-creative portfolio rotation. All this with ongoing excellence in executions supported by our proven operating model by country. So I'm very confident that all this will continue to deliver strong value creation for all Saint-Gobain stakeholders and that 2026 will be a good year for Saint-Gobain. Thank you very much. And we now turn to your questions for both Maud and myself. The tradition is to start with the questions from the room, then we will go on the call and finally with questions on the internet. So who wants to start? There are no questions in the room. I see a lot of Saint-Gobain S.A. So we will take questions from Saint-Gobain a bit later on. So let's start. Maybe, yes, Jean-Christophe, one question from the room.