Bluebell asks Saint-Gobain to reorganize-May 11, 2022 11:52

(AOF) – Saint-Gobain rose 1.81% on the Paris Stock Exchange to € 52.84 per share. Meanwhile, there were rumors that Bluebell Investment had forced the group to reorganize, according to media reports. According to the Financial Times, which accessed a letter exchange dating back to December last year, the Activist Fund is specifically calling on French people to replace the 10-year group CEO Pierre Andre de Charender with an independent president. During the period.

Pierre Andre de Charender, while serving as chairman of the board, handed over the general management of Saint-Gobain to Benoit Bazin last year. However, in a letter from mid-March, Brubel said, “It’s completely best practice to have an independent chairman of a listed company without a controlling shareholder.”

The fund also criticizes Saint-Gobain’s “disappointing performance.” […] From both an operational perspective and a total shareholder return perspective, “FT reports, titles down 16% from the beginning of the year. -André de Chalendar and Benoit Bazin focus on the distribution business to split, IPO, or sell and its core business, building materials.

Bluebell believes that maintaining this activity, which sells products other than those manufactured by Saint-Gobain, has little competitive advantage. However, the latter has increased its strategic business in recent months, selling professional distribution activities in the UK or Poland, and increasing the acquisition and investment of materials such as gypsum in Africa and insulation in France and India.

Bluebell partners Marco Tarico and Giuseppe Bivona were reported by the British daily in a letter dated December 13.

Bluebell, which had already been noted for the dismissal of Danon’s CEO Emmanuel Faber in France last year, never owned more than 0.5% of the capital of Saint-Gobain.

In response to the fund’s claims, building materials specialists thanked investors for their suggestions and said they would like to continue to implement the strategy outlined in the final Investor Day, with constructive dialogue.

AOF-Details

Key Point

-1665 Founded in 1665, the world leader in housing materials.

-Sales of € 44.2 billion, divided into five branches: Northern Europe 34%, Southern Europe and Africa (including France) 32%, Americas 13% and High Performance 15%.

-54% of activities target remodeling and infrastructure (52%), ahead of new housing (22%) or industry (10%), mobility (7%), and other industries.

-Business model based on the brand’s complete portfolio and solution-based approach: Increased productivity of construction professionals, end-user well-being, customized performance and innovation for industrial customers.

-Split capital (8.3% employees), Pierre Andre de Charender, 14 board chairs, and Benoit Bazin as general manager.

-A solid balance sheet with net liabilities of € 7.3 billion (35% of equity) and free cash flow of € 2.9 billion.

Task

-Launched October 2021 “Grow & Impact” Strategic Plan: Offering an integrated and differentiated solution for decarbonization of growth / construction / industrial investment better than the market around € 1.5 billion.

-Three principles, standard forecasting, digital integration in production and customer travel, and innovation strategies with sustainable growth: built by 20 platforms shared by industrial and construction customer businesses: smart materials, robotization , Weight reduction of materials, reduction of carbon footprint in manufacturing process … / Customer experience where 90% of sales are covered by PIM, “Digital pricing” to accelerate sales / In-house, “Digital journey” open program, Partnerships with start-ups led by Datala, NOVA… / External, Partnership Centers with Research, EAGLE, WOOL2LOOP or Optivind… Participation in projects, and co-development with customers.

-Environmental strategy integrated into product delivery, 72% of the portfolio contributes to the reduction of CO2 emissions, aiming for complete neutrality by 2050, 2030 target: industry in the range of 1 billion euros 2017 Research on circular economy / solid oxygen fuel cells that reduce CO2 emissions by 33% and avoid R & D investment / raw material extraction compared to.

-After a € 2 billion acquisition and a number of dispositions in 2021, a group located in the high-growth sector, especially construction chemicals, emerged.

-The integration of Chryso and Rockwool India and the completion of the bid to acquire GPC Applied Technologies.

Task

-Circular characteristics of activity, 4/5

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Sales made in the construction sector.

-The effects of raw material and energy inflation were offset by the ability to accept higher selling prices (10.3% at 4).

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2021 quarter);

-The total cost of repairing the Genfell Tower in London, where a local subsidiary provided covers and insulation foam, is unknown.

-After achieving record financial performance in 2021, we aim to exceed the market for sales growth, € 1.8 billion in industrial investment, and further increase in operating profit.

-2021 dividend 1.63 euros, stock repurchase 400 million euros.

Integration in construction chemistry

Construction chemistry makes it possible to decarbonize cement and concrete carbon dioxide emissions by dividing them into three or four. Therefore, Saint-Gobain chose to develop in this business. The global market for this business is estimated at 60-70 billion euros. It led two major acquisitions in this area in 2021 and competed with world leader Sika. After buying France’s Chryso (formerly Materis’ concrete and cement additive) for € 1 billion, the world leader in building materials bought an American listed on NASDAQ’s GCP Applied Technologies for € 2 billion. Swiss Seeka acquired the MBCC Group with a corporate value of € 5.2 billion. The latter is much larger than GCP and has sales of € 2.7 billion, while the new acquisition of Saint-Gobain in the United States is € 1 billion.

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