27th Jul 2007 07:00
Compagnie de Saint-Gobain26 July 2007 July 26, 2007 STRONG FIRST-HALF 2007 GROWTH - SALES: up 6.0% to €21,779 million up 6.9% like-for-like* - OPERATING INCOME: up 15.3% to €2,093 million up 16.6% like-for-like* - RECURRING NET INCOME**: up 31.2% to €1,067 million Net income amounts to €465 million, taking into account the €650 million provision for the Flat Glass fines (European Commission). * based on average exchange rates for first-half 2006** excluding capital gains, asset write-downs and the €650 million provision for the Flat Glass fines (European Commission) 2007 TARGETS RAISED - DOUBLE-DIGIT GROWTH IN OPERATING INCOME (at constant exchange rates***) - GROWTH IN RECURRING NET INCOME OF AT LEAST +20% ** excluding capital gains, asset write-downs and the Flat Glass fines (European Commission) *** based on average exchange rates for 2006 Performance of Group sectors All of the Group's business sectors saw a rise in like-for-like sales (constantGroup structure and exchange rates) in the six months to June 30, 2007 (seeAppendix 1). Organic growth for the Group came in at +6.9% (including a +3.7%price impact and a +3.2% volume effect). Business trends observed in the firstquarter - which had been boosted by particularly favorable weather conditions -generally held firm over the three months to June 30, 2007. Vigorous construction markets in Europe, bolstered by the impact of regulationspromoting energy efficiency in the building industry, more than offset thesignificant downturn in the US housing market. Trading momentum remained verystrong in Asia and emerging countries (organic growth of 19%), where the swiftexpansion of the Group continues apace. Demand related to capital spending andindustrial output also remained largely robust. The Flat Glass sector delivered the Group's strongest growth in like-for-likesales, which surged +12.9%. Construction in Europe is on an upward trend, with ahigh capacity utilization rate, a very favorable pricing environment andvigorous growth in coated glass for thermal insulation. Sales of automotiveglass performed well over the first half of the year. The operating margin forthe sector jumped to 13.1%, versus 9.1% in the same year-ago period. High-Performance Materials reported +2.4% like-for-like sales growth, with a+5.1% advance in the Ceramics & Plastics and Abrasives businesses on the back ofrobust industrial capital spending. The operating margin for these businessescontinued to advance, coming in at 14.0% for first-half 2007 compared to 13.8%for the same year-ago period, while the Reinforcements business delivered animproved 6.7% operating margin versus 3.2% for first-half 2006 despite a dip insales (down -4.5% on a like-for-like basis). Overall, the sector's operatingmargin represented 12.1% of sales versus 10.8% of sales over the six months toJune 30, 2006. Construction Products (CP) posted +4.1% like-for-like growth (+3.4% on areported basis) and its operating margin held up well, edging up to 13.1%(versus 12.9% in first-half 2006). Buoyant demand in construction markets acrossEurope and in emerging countries (76% of sales) more than offset the significantslowdown in US construction (24% of sales): - Interior solutions businesses (insulation and gypsum) reported solidorganic growth of +6.6%. The upbeat trading environment in Europe, which wasfurther boosted by energy-efficiency measures in the building industry, offsetthe fall in volumes and prices in the US. The operating margin for thesebusinesses advanced to 15.9% (versus 15.8% in the year-earlier period). - Exterior solutions businesses (exterior fittings, mortars and pipe)posted very modest +0.8% growth. US activities (siding and roofing products inparticular) reported a sharp downturn, while sales of mortars and pipe in Europeand emerging countries performed well. The operating margin for exteriorsolutions businesses remained virtually unchanged year-on-year, at 8.7%. The Building Distribution sector posted a strong +13.3% rise in sales on areported basis, buoyed by acquisitions made in 2006 and solid organic growth of+8.7%. Building on favorable first-quarter trading conditions, the businessdelivered robust sales in France, Scandinavia, and southern and central Europe,and improved its performance in the UK. The sector delivered a further increasein its operating margin, which came in at 5.2% compared to 5.0% in first-half2006 and 4.9% in the first six months of 2005. Like-for-like sales for the Packaging sector climbed +6.5%, thanks to the salesprice increases implemented over the last few months and robust volumes inEurope, which resulted in maximum utilization of existing production capacity.Excluding Calmar and Desjonqueres, which were sold on July 1, 2006 and March 31,2007, respectively, operating income for the sector surged by almost +25%, withthe operating margin advancing nearly two percentage points from 9.2% in thefirst six months of 2006 to 11% in first-half 2007. Analysis of the interim consolidated financial statements for first-half 2007 The interim consolidated financial statements set out below were authorized forissue by the Board of Directors on July 26, 2007: H1 2006 H1 2007 % In • millions In • millions change (1) (2) (2)/(1) Sales* 20,551* 21,779* +6.0% Operating income 1,815 2,093 +15.3% Non-operating costs** (157) (776)** n.m.Capital gains and losses and exceptional asset 13 3 n.m.write-downsDividends received 1 n.m.Business income 1,671 1,321 -20.9%Net financial expense (374) (351) +6.1%Income taxes (479) (491) +2.5%Share in net income/(loss) of associates (2) 8 n.m.Income before minority interests 816 487 -40.3%Minority interests (19) (22) +15.8% Recurring net income *** 813 1,067 +31.2% Recurring earnings per share *** 2.40 2.93 +22.1%Net income 797 465 -41.7%Earnings per share (in •) 2.35 1.28 -45.5% Cash flow from operations 1,643 1,932 +17.6%Cash flow from operations excluding capital gains tax 1,672 1,883 +12.6%Depreciation and amortization 887 1,005 +13.3%Capital expenditure 811 822 +1.4%Investments in securities 346 432 +24.9%Net debt 13,738 12,007 -12.6% * including ancillary revenue of €145 million in first-half 2007, versus€134 million in first-half 2006 ** including a €650 million provision for the Flat Glass fines (EuropeanCommission) *** excluding capital gains, asset write-downs and the provision for the FlatGlass fines (European Commission) Group sales advanced +6.0% on an actual structure basis. Like-for-like*, Groupsales moved up €1,395 million, or 6.9%, including a 3.7% price effect and a 3.2%volume impact. Changes in the scope of consolidation had a small 0.5% positiveimpact, while the impact of currency fluctuations was a negative 1.4%,reflecting mainly changes in the value of the US dollar. The breakdown of like-for-like sales by geographic area reveals vigorous tradingin France (up +6.5%) and other western European countries (up +9.2%). The downturn witnessed in the US (-7.2%), due to a correction of the housing market, is largely in line with the trend observed in the second half of 2006 and first quarter of 2007. The emerging countries and Asia region delivered the Group's strongest organic growth, at +19%. By geographic area, France accounted for 29% of first-half sales, with otherwestern European countries contributing 44%, North America 13%, and the emergingcountries and Asia 14%. * Based on average exchange rates for first-half 2006 Operating income jumped +15.3% or +16.6% at constant exchange rates*. TheGroup's operating margin leapt to 9.6% of sales (12.6% excluding BuildingDistribution), versus 8.8% of sales in the six months to June 30, 2006 (11.1%excluding Building Distribution). With the exception of North America, allgeographic areas reported profitability gains. Non-operating costs came in at €776 million in first-half 2007 (versus €157million in first-half 2006) and include a €78.5 million charge for restructuringcosts, a €47.5 million charge for asbestos-related litigation involvingCertainTeed in the US (versus €50 million in first-half 2006) and lastly, a €650 million charge to the provision set aside in respect of the two proceedingsconducted by the European Commission into the Flat Glass sector. Further to its investigations in February and March 2005, the EuropeanCommission sent Statements of Objections to Saint Gobain Glass France (glass forthe construction industry) on March 12, 2007, and to Saint-Gobain Glass France,Saint-Gobain Sekurit Deutschland and Saint-Gobain Sekurit France (automotiveglass) on April 19, 2007. The two Statements of Objections, which were also sentto Compagnie de Saint-Gobain in its capacity as parent company of theseentities, concerned an alleged breach of Article 81 of the Treaty of Rome. The Statements of Objections claim that the above-mentioned glass subsidiariescontacted or met with one or more competitors to discuss pricing strategies ormarket share stabilization, or to exchange illicit information. Following a review of the case and the objections, Saint-Gobain Glass France isnot challenging the allegations made in respect of its construction glassactivity, while Saint-Gobain Glass France, Saint-Gobain Sekurit Deutschland andSaint-Gobain Sekurit France have acknowledged the claims against theirautomotive glass businesses but are challenging the scope given to certain suchclaims by the Commission. In their responses to the Commission, the companies concerned nevertheless setforth a series of arguments based on the seriousness and duration of the allegedinfringements, the amount of sales generated by the activities to be taken intoaccount in the claim, and the impact of the repeat offence. Compagnie deSaint-Gobain has formally denied any liability whatsoever for the allegationsmade in the two cases. Based on the arguments set forth, the Group decided toset aside a total provision of €650 million in its accounts at June 30, 2007. Capital gains and losses and exceptional asset write-downs came in at €3million, compared with €13 million in the same year-ago period. Capital gains of€252 million arising mainly on the sale of Desjonqueres, were almost fullyoffset by exceptional asset write-downs (€249 million, including around €190million relating to the planned sale of the Reinforcements and Compositesbusiness). Business income fell back -20.9%, after taking into account the above-mentionedfactors (non-operating costs, capital gains and losses and exceptional assetwrite-downs. Net financial expense improved +6.1% to €351 million compared with €374 millionin the first six months of 2006, reflecting mainly the reduction in net debt. Recurring net income (excluding capital gains and losses, exceptional assetwrite-downs and the provision for the Flat Glass fines) advanced +31.2% to€1,067 million compared with €813 million in the year-earlier period. Based onthe average number of shares outstanding at June 30, 2007 (364,639,299 shares),recurring earnings per share amounts to €2.93, up +22.1% on June 30, 2006(€2.40). Net income came in at €465 million, down -41.7% on the year-earlier period dueto the provision for the Flat Glass fines indicated above. Based on the averagenumber of shares outstanding at June 30, 2007, (364,639,299 shares), earningsper share amounts to €1.28, a fall of -45.5% on June 30, 2006 (€2.35). * Based on average exchange rates for first-half 2006 Cash flow from operations stands at €1,932 million, up +17.6% on first-half2006. Excluding the tax impact of capital gains and losses and assetwrite-downs, cash flow from operations advanced 12.6% to €1,883 million, versus€1,672 million for first-half 2006. Capital expenditure edged up +1.4% to €822 million, as against €811 million inthe six months to June 30, 2006, representing 3.8% of first-half 2007 salesversus 3.9% of sales for first-half 2006. Strong growth-driven capital spendingin Construction Products and Flat Glass businesses continued apace, accountingfor just over 50% of total capital expenditure. By geographic area, emergingcountries and Asia continue to account for a significant part of growthinitiatives and represent around 30% of total Group capital spending, double thecontribution of these businesses to sales. Investments in securities totaled €432 million in first-half 2007, including€285 million relating to the Building Distribution sector, where 34 acquisitionsbrought in €560 million in full-year sales, and €72 million relating to theConstruction Products sector. Net debt stands at €12,007 million at June 30, 2007, an increase of 3.5% onend-2006 (€11,599 million) and a fall of 12.6% compared with the same year-agoperiod. Net debt represents 80% of consolidated shareholders' equity, comparedwith 107% at end-June 2006. * * * Update on asbestos claims in the United States Some 4,000 claims were filed against CertainTeed in the first six months of 2007(around 7,000 claims over the last 12 months), broadly in line with the numberof new claims recorded in 2006. Around 5,000 claims were settled over theperiod, bringing the number of outstanding claims at June 30, 2007 to 75,000,versus 76,000 at December 31, 2006. Total damages paid over the last 12 monthstotaled USD 78 million at end-June 2007, compared to USD 83 million at December31, 2006. * * * 2007 outlook and targets The Group expects its markets in Europe, Asia and emerging countries to remainrobust in the second half of the year. Despite the fact that no swift turnaroundseems likely in the US construction market, the global trading environmentshould remain largely favorable. Accordingly, the Group is raising its targetsfor 2007: - Double-digit growth in operating income at constant exchangerates (average exchange rates for 2006) - Growth in recurring net income of at least +20% - excludingcapital gains and losses and the Flat Glass fines (European Commission). These objectives take into account the sale of Desjonqueres at March 31, 2007and of the Reinforcements and Composites business in second-half 2007. * * * Strategy Following the sale of its plastics packaging business (Calmar) in 2006 and itsglass flasks business (Desjonqueres) in the first six months of 2007, the Grouphas recently announced its intention to sell its Reinforcements and Compositesbusiness before the end of the year (2006 sales of €715 million, representingaround 60% of total sales for the Reinforcements business) to Owens Corning. TheWichita Falls plant, which delivered sales of around €180 million for theReinforcements and Composites business in 2006) will be the subject of aseparate sale agreement. The Group intends to press ahead with its strategy by carrying out acquisitionsin the construction, energy and environment markets, by pursuing its R&D andinnovation initiatives, and stepping up its geographic expansion efforts inemerging countries. The Group believes it is ideally placed to meet its ambition of worldwideleadership in the construction markets, offering innovative solutions thataddress the fundamental global concerns of growth, energy and the environment. This clear market strategy will also allow Saint-Gobain to leverage growthsynergies in a more integrated Group and unlock significant cost savings ofaround €300 million in 2010. By 2010, the Group expects its growth and profitability momentum to gather pace,with 5% annual growth in sales (excluding acquisitions and currency impacts) anddouble-digit annual growth in earnings per share. The Group has lifted itstargets as from 2010 and is tabling ROI of between 22%-25% (versus 20%previously) and ROCE of between 13%-14% (versus 12% previously). * * * Forthcoming results announcements Sales for the first nine months of 2007: October 25, 2007, after close oftrading on the Paris Bourse. * * * Investor Relations departmentFlorence Triou-Teixeira Tel.: +33 1 47 62 45 19Alexandre Etuy Tel.: +33 1 47 62 37 15 Fax: +33 1 47 62 50 62 Appendix 1 : Results by Business Sector and geographic area H1 H1 Change on Change on a Change on aI. SALES 2006 2007 an actual comparable comparable (in EUR (in EUR structure structure structure and m) m) basis basis currency basisBy sector and division:Flat Glass 2,498 2,797 +12.0% +12.0% +12.9%High Performance 2,544 2,486 -2.3% -1.5% +2.4%Materials (1)Ceramics & Plastics and 1,833 1,825 -0.4% +0.8% +5.1% AbrasivesReinforcements 718 667 -7.1% -7.6% -4.5%Construction Products (1) 5,460 5,644 +3.4% +1.9% +4.1%Interior Solutions (2) 3,183 3,393 +6.6% +4.8% +6.6%Exterior Solutions (2) 2,288 2,267 -0.9% -2.0% +0.8%Building Distribution 8,401 9,522 +13.3% +8.8% +8.7%Packaging 2,129 1,871 -12.1% +3.6% +6.5%Internal sales and (481) (541) n.m. n.m. n.m.misc.GROUP TOTAL 20,551 21,779 +6.0% +5.5% +6.9% By geographic area :France 6,357 6,706 +5.5% +6.5% +6.5%Other Western European 8,887 9,920 +11.6% +9.5% +9.2%countriesNorth America 3,634 2,981 -18.0% -14.2% -7.2%Emerging countries and 2,762 3,289 +19.1% +16.5% +19.0%AsiaInternal sales (1,089) (1117) n.m. n.m. n.m.GROUP TOTAL 20,551 21,779 +6.0% +5.5% +6.9%(1) including intra-sectoreliminations(2) See Appendix 3 fordetails H1 H1 Change on H1 H1II. OPERATING INCOME 2006 2007 an actual 2006 2007 (in EUR (in EUR structure (in % of sales) (in % of sales) m) m) basis By sector and division:Flat Glass 228 366 +60.5% 9.1% 13.1%High Performance 276 300 +8.7% 10.8% 12,1%MaterialsCeramics & Plastics and 253 255 +0.8% 13.8% 14.0% AbrasivesReinforcements 23 45 n.m. 3.2% 6.7%Construction Products 704 739 +5.0% 12.9% 13.1%Interior Solutions (*) 503 541 +7.6% 15.8% 15.9%Exterior Solutions (*) 201 198 -1.5% 8.8% 8.7%Building Distribution 418 494 +18.2% 5.0% 5.2%Packaging 205 212 +3.4% 9.6% 11.3%Miscellaneous (16) (18) n.m. n.m. n.m.GROUP TOTAL 1,815 2,093 +15.3% 8.8% 9.6% By geographic area :France 491 565 +15.1% +7.7% +8.4%Other Western European 695 926 +33.2% +7.8% +9.3%countriesNorth America 407 234 -42.5% +11.2% +7.8%Emerging countries and 222 368 +65.8% +8.0% +11.2%AsiaGROUP TOTAL 1,815 2,093 +15.3% +8.8% +9.6%(*) See Appendix 3 fordetails H1 H1 Change on H1 H1III. BUSINESS INCOME 2006 2007 an actual 2006 2007 (in EUR (in EUR structure (in % of sales) (in % of sales) m) m) basis By sector and division:Flat Glass 216 (328) n.m. 8.6% -11.7% (a)High Performance 232 43 -81.5% 9.1% 1.7%MaterialsCeramics & Plastics and 220 233 +5.9% 12.0% 12.8% AbrasivesReinforcements 12 (190) n.m. 1.7% n.m. (b)Construction Products 664 727 +9.5% 12.2% 12.9%Interior Solutions (*) 498 540 +8.4% 15.6% 15.9%Exterior Solutions (*) 166 187 +12.7% 7.3% 8.2%Building Distribution 411 494 +20.2% 4.9% 5.2%Packaging 229 462 (c) n.m. 10.8% n.m.Miscellaneous (81) (77) (d) n.m. n.m. n.m. (d)GROUP TOTAL 1,671 1,321 -20.9% 8.1% 6.1%(a) after a provision of €650m for theflat glass fines (European Commission)(b) after €190 m of asset write-downsrelated to the disposal of theReinforcements & Composites businesses(c) after €253m ofcapital gains followingthe disposal ofDesjonqueres(d) after asbestos-relatedcharge (before tax) of • 47.5min H1 2007 versus €50m in H12006(*) See Appendix 3 fordetails By geographic area :France 442 (36) (a) -108.1% 7.0% -0.5%Other Western European 737 928 +25.9% 8.3% 9.4%countriesNorth America 277 160 (b) -42.2% 7.6% 5.4%Emerging countries and 215 269 +25.1% 7.8% 8.2%AsiaGROUP TOTAL 1,671 1,321 -20.9% 8.1% 6.1%(a) after a provision of €650m for theflat glass fines (European Commission)(b) after asbestos-related charge(before tax) of • 47.5m in H1 2007versus €50m in H1 2006 H1 H1 Change on H1 H1IV. CASH FLOW 2006 2007 an actual 2006 2007 (in EUR (in EUR structure (in % of sales) (in % of sales) m) m) basis By sector and division: Flat Glass 261 347 +33.0% 10.4% 12.4%High Performance 211 304 +44.1% 8.3% 12.2%MaterialsCeramics & Plastics and 167 207 +24.0% 9.1% 11.3% AbrasivesReinforcements 44 97 +120.5% 6.1% 14.5%Construction Products 552 577 +4.5% 10.1% 10.2%Interior Solutions (*) 369 392 +6.2% 11.6% 11.6%Exterior Solutions (*) 183 185 +1.1% 8.0% 8.2%Building Distribution 310 380 +22.6% 3.7% 4.0%Packaging 225 211 -6.2% 10.6% 11.3%Miscellaneous 84(a) 113 n.m. n.m. n.m.GROUP TOTAL 1,643 1,932 +17.6% 8.0% 8.9% By geographic area :France 414 494 +19.3% 6.5% 7.4%Other Western European 658 852 +29.5% 7.4% 8.6%countriesNorth America 304 224 (a) -26.3% 8.4% 7.5%Emerging countries and 267 362 +35.6% 9.7% 11.0%AsiaGROUP TOTAL 1,643 1,932 +17.6% 8.0% 8.9%(a) after asbestos-related charge (after tax)of • 29m in H1 2007 versus €33m in H1 2006(*) See Appendix 3 fordetails H1 H1 Change on H1 H1V. CAPITAL EXPENDITURE 2006 2007 an actual 2006 2007 (in EUR (in EUR structure (in % of sales) (in % of sales) m) m) basis By sector and division: Flat Glass 166 166 +0.0% 6.6% 5.9%High Performance 76 73 -3.9% 3.0% 2.9%MaterialsCeramics & Plastics and 61 57 -6.6% 3.3% 3.1% AbrasivesReinforcements 15 16 +6.7% 2.1% 2.4%Construction Products 306 301 -1.6% 5.6% 5.3%Interior Solutions (*) 250 230 -8.0% 7.9% 6.8%Exterior Solutions (*) 56 71 +26.8% 2.4% 3.1%Building Distribution 134 147 +9.7% 1.6% 1.5%Packaging 119 125 +5.0% 5.6% 6.7%Miscellaneous 10 10 n.m. n.m. n.m.GROUP TOTAL 811 822 +1.4% 3.9% 3.8% By geographic area :France 147 167 +13.6% 2.3% 2.5%Other Western European 310 259 -16.5% 3.5% 2.6%countriesNorth America 113 161 +42.5% 3.1% 5.4%Emerging countries and 241 235 -2.5% 8.7% 7.1%AsiaGROUP TOTAL 811 822 +1.4% 3.9% 3.8% Appendix 2: Consolidated Balance Sheet in EUR millions June 30, 2007 Dec 31, 2006 AssetsGoodwill 9,402 9,327Other intangible assets 3,180 3,202Property, plant and equipment 12,436 12,769Investments in associates 114 238Deferred tax assets 405 348Other non-current assets 577 390 Non-current assets 26,114 26,274 Inventories 6,079 5,629Trade accounts receivable 7,381 6,301Current tax receivable 73 66Other accounts receivable 1,363 1,390Assets held for sale 789 548Cash and cash equivalents 1,203 1,468 Current assets 16,888 15,402 Total assets 43,002 41,676 Liabilities and Shareholders' equityCapital stock 1,495 1,474Additional paid-in capital and legal reserve 3,604 3,315Retained earnings and net income for the year 9,738 9,562Cumulative translation adjustments 137 140Fair value reserves (7) (20)Treasury stock (215) (306) Shareholders' equity 14,752 14,165 Minority interests 290 322 Total equity 15,042 14,487 Long-term debt 9,795 9,877Provisions for pensions and other employee benefits 1,803 2,203Deferred tax liabilities 1,401 1,222Provisions for other liabilities and charges 1,496 936 Non-current liabilities 14,495 14,238 Current portion of long-term debt 637 993Current portion of provisions for other liabilities and 473 467chargesTrade accounts payable 5,824 5,519Current tax liabilities 275 190Other accounts payable 3,200 3,336Liabilities held for sale (*) 278 249Short-term debt and bank overdrafts 2,778 2,197 Current liabilities 13,465 12,951 Total equity and liabilities 43,002 41,676 (*) Reinforcement and Composites and Flasks Businesses Appendix 3 : Construction Products sector - details The activities of the Construction Products sector are henceforthpresented in two sub-groups: Interior Solutions, (Insulation andGypsum), and Exterior Solutions, (Building Materials and Pipe). H1 H1 Change on Change on Change on a aI. SALES 2006 2007 an actual comparable comparables (in (in structure structure structure EURm) EURm) basis basis and currency basisInterior Solutions 3,183 3,393 6.6% 4.9% 6.6%Insulation 1,224 1,399 14.3% 6.1% 7.8%Gypsum 1,964 2,004 2.1% 4.4% 6.1%internal sales -5 -10 n.m. n.m. n.m.Exterior Solutions 2,288 2,267 -0.9% -2,0% 0.8%Building Materials 1,383 1,313 -5.1% -5.6% -1.4%Pipe 905 954 5.4% 3.5% 4.0%internal sales - - n.m. n.m. n.m.Eliminations (11) (16) n.m. n.m. n.m.Construction Products 5,460 5,644 3.4% 2.0% 4.1%sector H1 H1 Change on H1 H1II. OPERATING INCOME 2006 2007 an actual 2006 2007 (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 503 541 7.6% 15.8% 15.9%Insulation 169 228 34.9% 13.8% 16.3%Gypsum 334 313 -6.3% 17.0% 15.6%Exterior Solutions 201 198 -1.5% 8.8% 8.7%Building Materials 120 99 -17.5% 8.7% 7.5%Pipe 81 99 21.6% 9.0% 10.4%Construction Products 704 739 5.0% 12.9% 13.1%sector H1 H1 Change on H1 H1III. BUSINESS INCOME 2006 2007 an actual 2006 2007 (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 498 540 8.4% 15.6% 15.9%Insulation 165 226 37.0% 13.5% 16.2%Gypsum 333 314 -5.7% 17.0% 15.7%Exterior Solutions 166 187 12.7% 7.3% 8.2%Building Materials 106 95 -10.4% 7.7% 7.2%Pipe 60 92 53.3% 6.6% 9.6%Construction Products 664 727 9.5% 12.2% 12.9%sector H1 H1 Change on H1 H1IV. CASH FLOW 2006 2007 an actual 2006 2007 (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 369 392 6.2% 11.6% 11.6%Insulation 168 231 37.5% 13.7% 16.5%Gypsum 201 161 -19.9% 10.2% 8.0%Exterior Solutions 183 185 1.1% 8.0% 8.2%Building Materials 111 100 -9.9% 8.0% 7.6%Pipe 72 85 18.1% 8.0% 8.9%Construction Products 552 577 4.5% 10.1% 10.2%sector H1 H1 Change on H1 H1V. CAPITAL EXPENDITURE 2006 2007 an actual 2006 2007 (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 250 230 -8.0% 7.9% 6.8%Insulation 43 65 51.2% 3.5% 4.6%Gypsum 207 165 -20.3% 10.5% 8.2%Exterior Solutions 56 71 26.8% 2.4% 3.1%Building Materials 39 52 33.3% 2.8% 4,0%Pipe 17 19 11.8% 1.9% 2.0%Construction Products 306 301 -1.6% 5.6% 5.3%sector Appendix 4 : Interior Solutions andExterior Solutions The activities of the Construction Products sector are henceforth presented intwo sub-groups: Interior Solutions, (Insulation and Gypsum), and ExteriorSolutions, (Building Materials and Pipe). I. SALES First nine Full-Year Q1 2007 H1 2007 months 2006(in EUR m) of 2006 Interior Solutions 4,795 6,424 1,680 3,393Exterior Solutions 3,420 4,476 1,047 2,267Internal sales (17) (24) (7) (16)Construction Products 8,198 10,876 2,720 5,644sector II. OPERATING INCOME First nine Full-Year Q1 2007 H1 2007 months 2006(in EUR m) of 2006 Interior Solutions 1,028 541Exterior Solutions 348 198Construction Products 1,376 739sector III. BUSINESS INCOME First nine Full-Year Q1 2007 H1 2007 months 2006(in EUR m) of 2006 Interior Solutions 989 540Exterior Solutions 240 187Construction Products 1,229 727sector IV. CASH FLOW First nine Full-Year Q1 2007 H1 2007 months 2006(in EUR m) of 2006 Interior Solutions 726 392Exterior Solutions 322 185Construction Products 1,048 577sector V. CAPITAL EXPENDITURE First nine Full-Year Q1 2007 H1 2007 months 2006(in EUR m) of 2006 Interior Solutions 632 230Exterior Solutions 212 71Construction Productssector 844 301 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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