A FEW WORDS FROM BENOIT BAZIN Chairman and Chief Executive Officer of Saint-Gobain 2 LETTER TO SHAREHOLDERS N°101 H1 2025 RESULTS “Our first-half 2025 performance once again demonstrates the strength of Saint-Gobain’s new profile, with growth in sales and earnings despite a certain wait-and-see environment in some markets. Asia and emerging countries continued to drive growth for the Group and Europe reported a further sequential improvement, while North America saw a slight decrease in sales. The integration of our recent acquisitions has enabled us to strengthen the quality of the Group’s profitable growth profile and benefit from balanced earnings across three geographic zones. Our decentralized operating model by country, with no direct exposure to customs tariffs, is key to the Group’s ability to withstand external shocks. Our country CEOs now oversee our entire range of solutions to accelerate the Group’s growth in each of its channels and end markets. Despite a still contrasted macroeconomic environment and ongoing geopolitical uncertainty, I am confident that 2025 will be another successful year for Saint-Gobain, thanks to our dedicated teams: I applaud their commitment. At our Capital Markets Day on October 6, we will present the Group’s new ambitions as worldwide leader in light and sustainable construction, in terms of profitable growth and outperformance as well as value creation for all of our stakeholders.” • Sales up 3.4% in H1 2025 in local currencies • Record operating margin of 11.8% •Record EBITDA and operating income in local currencies, up 7.0% and 5.0%, respectively •Recurring EPS at a record level and 63% free cash flow conversion ratio •Strategic acquisitions for €1.7 billion in construction chemicals, with Cemix (Latin America), FOSROC (India and Middle East) and other selective acquisitions (Maturix, Interstar Materials, Soquimic, Isoltech) A NEW PROFITABLE GROWTH PROFILE 2025 outlook confirmed: the Group expects an operating margin of more than 11.0% The Group continues to outperform its markets thanks to the strength of its strategic position as worldwide leader in light and sustainable construction: • An unrivalled range of sustainable and innovative solutions based on integrated systems and an industry-leading low-carbon offer; • Strong positioning in construction chemicals, with €6.5 billion in annual sales (2024 pro forma for recent changes in Group structure). The integrations of Cemix in Latin America and FOSROC in India and the Middle East in the first half strengthen Saint-Gobain’s presence in high-growth markets; • A highly effective, proven operating model by country, further strengthened since July 1, with a fully regional organization to accelerate growth of our solutions country by country in each market segment (notably residential, data centers, hospitals, schools, infrastructure); • Balanced contribution to operating income from three geographic zones: around 35% from North America, 33% from Asia and emerging countries, and 32% from Western Europe. This balanced geographic profile has been achieved thanks to the rotation of around 40% of sales since 2018; • A transformed financial profile: structurally higher margins, a free cash flow conversion ratio structurally above 50% and a two-fold increase in earnings per share since 2018.
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