SGO: Breakfast with CFO

Research evidence excerpt

SGO: Breakfast with CFO

EQUITY RESEARCH QUICK TAKE

RBC Europe Limited

Oliver Dyson (Analyst)

Anthony Codling (Analyst)

June 18, 2026

Compagnie de Saint-Gobain

Breakfast with CFO

NXT PA: SGO | EUR 78.88 | Outperform | Price Target EUR 95.00

Sentiment: Neutral

Our view:

Wednesday morning we hosted a breakfast with Saint Gobain's CFO Maud Thuaudet. The tone was confident and constructive,

with the year progressing as planned. Below we summarise the key themes discussed over breakfast

Strategy: M&A & Portfolio Rotation

Management confirmed ~€3bn of divestitures signed or completed over the past six months, continuing the reshaping of the

Group's profile. Key points on capital allocation:

Divestitures: The Nordic distribution business was sold at an attractive >20x EBIT multiple to highly motivated buyers. SGO still

retains just over €1.5bn of Nordic distribution sales and its French distribution business (Point.P), which management views as

core given its scale (5-6x larger than the number 2 player in the market), strong integration with manufacturing, and solid ROCE.

The Group has also fully exited Brazilian distribution.

M&A pipeline: The pipeline is described as "good" with no bottleneck on valuation or availability – it is simply a matter of timing

and relationship-building with targets. The Group prefers bilateral discussions over auction processes. Four construction chemicals

acquisitions have been completed YTD, consistent with the bolt-on consolidation strategy in this fragmented ~€100bn market.

Geographic focus: In emerging markets, the approach is bolt-ons, family businesses and JVs to build platform scale. In mature

markets (North America, Europe), the focus is on acquiring differentiated "hero products" from companies that can subsequently