sain t-gobain annu al report 2008 annual report

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Saint-Gobain, the world leader in the habitat and construction
markets, designs, manufactures and distributes building
materials, providing innovative solutions to meet growing
demand in emerging countries, for energy efficiency
and for environmental protection.
Growing awareness of global warming and the looming
shortage of fossil fuels are driving developed countries to pass
new regulations in favor of energy-efficient construction.
This is encouraging the introduction of innovative
construction techniques for new buildings along with
new insulation standards for renovation projects. At the same
time, emerging economies are experiencing rapid urban
development combined with exponential growth
in infrastructure needs and are looking for similar energyefficient
solutions. All of these developments represent
attractive opportunities for Saint-Gobain, which has
successfully shifted from a product culture to a market culture.
Today, we offer easy-to-use solutions aligned with local needs
and practices in every segment of the construction market,
from homes to public buildings and from newbuilds
to renovation projects.
The strategic vision announced in 2007 was deployed in 2008
with a focus on three priority objectives: inventing and
building the homes of the future, driving faster expansion in
emerging markets and responding to recession by
demonstrating operational excellence.
Building the homes of the future
Saint-Gobain intends to play a leading role in the revolution
that is about to take place in the habitat and construction
sector, by developing innovations that will make buildings
more energy efficient and help to protect the planet. Our
steady – and ongoing – research and development
commitment has already brought to market a wide array of
interior and exterior insulation solutions combining flat glass,
glass wool, plasterboard and exterior wall coating mortars.
A strong supporter of renewable energies, Saint-Gobain is
focusing on solar power solutions with a presence across the
value chain and the technology base, including photovoltaic
panels, solar concentrators and solar heating systems. In 2008,
a dedicated unit, Saint-Gobain Solar, was set up. Saint-Gobain’s
objective is to lift revenues of its whole solar-related business
from a current €150 million to €2 billion in 5 years.
At the same time, we are helping homeowners to save energy
by developing substrates for low-energy LED lamps.
The home of the future will be a comfortable, healthy haven,
protected from the aggressions of the outside world. Saint-
Gobain offers decorative solutions, such as ceiling systems
and paintable woven glass fabrics, products to improve air
quality, and sound absorbing ceiling and plasterboard panels.
Lastly, the home of the future will be built in partnership with
the main construction players, led by a new generation of
contractors skilled in energy-efficient construction techniques.
As part of our commitment to helping customers and partners
to embrace these green principles, a broad-based program was
introduced in 2008 to train builders in emerging energysaving
techniques and solutions.
This strategy is being deployed through three Sectors, each
with its own growth drivers contributing harmoniously to our
expansion.
The Innovative Materials Sector, comprising the Flat Glass and
High-Performance Materials divisions, is spearheading our
advance in over-the-horizon technologies. With its unique
portfolio of materials and processes for the habitat,
construction and industrial markets, the Sector embodies our
innovation-oriented culture and accounts for 65% of our total
Research and Development commitment.
The Construction Products Sector offers acoustic and thermal
insulation products, wall facings, roofing products, piping and
other interior and exterior building solutions that deliver a
wide range of benefits, including energy savings. Its diversified
business base provides an unrivalled referral network, a global
industrial footprint and a portfolio of high profile brands like
Isover®, PAM®, Weber®, Placo®, Gyproc® and CertainTeed®.
The Building Distribution Sector, which is sharply focused on
services for building contractors, has a strong service culture
and detailed knowledge of the construction market and how it
is changing. It plays a key role in helping contractors to
embrace new building renovation techniques.
The Packaging Sector does not form part of the strategy
and was scheduled to be divested. In light of prevailing
market conditions, however, the sale has been postponed.
The business delivered excellent results in 2008 and we
are continuing to invest in its development.
Driving faster growth in emerging markets
In line with its search for new growth in promising segments,
Saint-Gobain is continuing to expand in the emerging
economies, where the habitat and construction markets offer
substantial growth potential due to the rapid pace of urban
development and exponentially rising infrastructure needs.
For the second year running, Asia and emerging markets
contributed more to consolidated net sales than North
America, at 16% versus 12%. The aim is to lift this proportion
to one-third in 2010 from one-quarter in 2008 (excluding
Building Distribution).
Saint-Gobain - 2008 Annual Report