Philippe CROUZET, President of the Building Distribution Sector

Agenda

SGBD at a glance

N°1 distributor of building materials in Europe:3,720 branches – 24 countries – 66,000 employees

Main markets

Saint-Gobain’s largest & youngest business (1996)

A positive contribution to the Group’s organic growth

1996–2005: 10 years of over 20% annual growth

SGBD management team

SGBD business model

Our business:

Our markets: A favorable environment for distribution

Good market potential, with heterogeneous growth rates

Diversified professional customer base (1)

Diversified professional customer base (2)

New trends among craftsmen customers

New trends among individual customers

SGBD’s business model

The fundamentals of our business model

SGBD’s answer: multi-formats & multi-brands

5 flagship brands, federating both specialist and generalist formats

Fundamentals: organic growth and external growth

Fundamentals: organic growth and external growth

Strong annual organic growth: +5.4% (1997-2005)

Value-creating external growth

Rapid value creation of bolt-on acquisitions

Dahl: example of a major acquisition, with quick value creation

Steady increase in return on operating assets

Fundamentals: balance between centralization and decentralization

Fundamentals: implementation of European synergies

An organization based on European Filières

An organization based on European Filières

Our strategy for profitable growth

Organic growth drivers

Organic growth: +5% annual growth target on average

Organic growth drivers

New products & services: major trends

New products & services: wood-frame housing

Organic growth: greenfield branch openings

Organic growth: development of our human resources

Development of human resources: a continuous effort to integrate new employees and insure their commitment

Development of human resources: a proven track record of SGBD’s ability to integrate acquisitions

Growth Strategy international development

A strategy consistent with Saint-Gobain’s development in the construction markets

International development

International development: Spain

International development: Poland

International development: Nordic countries

International development: South America

Growth strategy

International procurement in SGBD

Leverage from European partnership and purchases

Private label development

Private label development: a heterogeneous potential

Supply chain: the best solution for each market’s needs

Building 2010

A balanced growth based on our track record

2005-2010: a further double-digit growth

The professional answer