Here we are registered to participate in the Saint-Gobain shareholders’ meeting, which is being held at Salle Pleyel in Paris. We have the proxies of 296 readers ofInvest unable to move, for 54,964 shares.
After a film presenting the company, the president, Pierre-André de Chalendar, opens the session. The scrutineers are the employee fund and BNP Paribas Asset Management. Sign language translation is provided. The Chairman is pleased that the AGM is being held face-to-face, for the quality of the shareholder dialogue, and suggests meeting for a drink after the meeting.
The floor is with the general manager, Benoit Bazin. He says that in 2021 organic growth was 13.8% compared to 2019, with an operating margin of 10.2%, compared to 8% two years earlier, and a return on capital employed of 15, 3%, compared to 11.1% in 2019. The strategic plan is to be the leader in sustainable construction. A massive innovation effort is needed in construction. The building is responsible for 40% of CO2 emissions. To meet the European Commission’s reduction targets, the renovation rate must be doubled.
Half of the turnover is achieved in renovation, in conjunction with two million craftsmen. The trend is also towards light or frugal construction (40% of sales). New construction methods make it possible to reduce raw materials by 50% and construction time by 20%. Investments and R&D costs dedicated to decarbonization represent 100 million euros per year. The scope changes regularly. Since 2018, the group has bought 3.5 billion euros in turnover with an EBITDA margin of around 20% and sold 6 billion euros in invoices with a margin of less than 5%. The leader recalls the recent announcement of the takeover of the Canadian Kaycan for 928 million dollars. The speech is punctuated by short videos.
Very happy new year 2022
For 2022, Benoît Bazin recalls, as revealed this morning, that first-half operating profit will be above its record level for the first half of 2021, again with a double-digit margin. Innovation produces its effects on prices. He concludes that ” 2022 will be a very good year and passes the microphone to the financial director, Sreedhar N., an Indian who speaks perfect French. He explains that the objectives of the 2021-2025 plan are to obtain organic growth of 3% to 5% (after 6.1% in 2021) with an operating margin between 9% and 11% (compared to 10.2% ) and a return on capital employed of 12% to 15% (15.3% last year).
The Deputy CEO, HRD and Head of CSR, Claire Pedini, says that the group’s impact on the environment is very high since the solutions proposed allow the avoidance of 1,300 million tonnes of CO2 each year.
Low carbon glass
For example, and this is a world first, Saint-Gobain produced zero-carbon glass for 100,000 windows. And Chryso admixtures (a company formerly with Lafarge) make it possible to produce low-carbon concrete.
Shareholders are now attending a CSR round table moderated by a journalist who asks how to reconcile financial and extra-financial performance. Five leaders participate. Sreedhar says that this is an investment for the future (recalling the figure of 100 million per year) and that the role, the influence of the financier within the company, is crucial for CSR. Claire Pedini believes that Saint-Gobain and other companies are more advanced than some governments in the fight against global warming.
A speaker talks about the successful production test of zero-carbon flat glass. Biogas replaced natural gas and green electricity was used. And the raw materials that emit by reacting with each other have been replaced by recycled glass (cullet, a strategic raw material). A video explains this in detail. A range of low-carbon glass (70% less) will be marketed in the second half. Furnaces must be adapted to new energies. This is the biggest technological revolution in flat glass for 50 years.
The debate also concerns recruitment, in a tight market where efforts are needed to attract young people and retain them. Saint-Gobain has created an apprentice training center (CFA) for young people who do not come from a traditional school curriculum.
It is now Jean-Dominique Senard, Lead Director, who talks about the work and operation of the Board of Directors. He says that ” the Chairman-CEO couple works wonderfully well “.
We are now listening to the speech of Anne-Marie Idrac, chair of the appointments and compensation committee. She specifies that it is proposed to vote for the renewal of Pierre-André de Chalendar’s term of office for only two years, until the June 2024 AGM. , an annual bonus of up to 170% and the cap on equity compensation is 100%.
An auditor describes his work, in particular on the evaluation of litigation and provisions related to asbestos and pension commitments.
We are then detailed the resolutions on the agenda.
Two and a half hours after the start of the meeting, it’s finally time for questions from the audience… Question on polystyrene. This activity was sold, the group preferring glass, wood or even rock wool.
A question about the war in Ukraine. Is the group ready to rebuild or will American companies, as often, have priority? Benoit Bazin says the group will participate as soon as possible. It has projects and more than 49 Ukrainian employees, some of whom have been hired or hosted in Poland and Romania.
Question on the insulation of residential Haussmann buildings, which consumes interior surface. The answer, given the thickness of the walls, is that it is best to think about changing the joinery and windows.
Question on the renewal of the president. Pierre-Andre de Chalendar says that he “ don’t try to hang on », that he has other projects in life, but that the council asked him, as well as the CEO, and that he accepted for a maximum of two years.
Question also on the possible sale of distribution activities, after that of Lapeyre. This company was geared towards end customers (B2C), while the group is targeting craftsmen and professionals.
We go to the vote with a quorum of 69.43%.
The dividend is voted unanimously (99.99%). The term of the president is renewed with a score of 94.75%. The CEO’s compensation policy is accepted with 83.09% of the votes cast.