Etex

Annual Report 2019

1 About Etex
Our company & strategy

Message to shareholders 12

A collaborative, Key events 2019 16

Our stakeholders 18
Strategy 20

agile and customer-

focused company,
aimed at inspiring
ways of living.
10 11
 About Etex Etex
Message to shareholders Annual Report 2019

In 2019, we have
delivered on all of our Jean-Louis de Cartier de
Marchienne, Chairman of
the Board of Directors

strategic priorities Paul Van Oyen,

Chief Executive Officer

Through relentless strategic execution and group-wide commitment to our

three-pillar agenda, Etex made significant strides forward in 2019 toward its ambition:
to establish ourselves as a lightweight construction specialist in order to meet global
challenges and be a key player in the transformation of the construction industry.

Advancing Progress on our six strategic pillars we have successfully strengthened our
Creaton brand.
on our three- Last year, Etex made notable achievements
related to the six key strategic pillars defined Our Promat passive fire protection and
pillar agenda by our leadership team. The group’s thermal insulation solutions are world leaders
GBP 140-million investment – the largest in in quality, innovation and performance. Last
The future success of our company hinges its history – on a new plasterboard factory year, we launched a comprehensive brand
on three priorities defined in 2018: profitable in Bristol (UK) underlines our confidence in awareness campaign with clear segmentation
growth, operational performance and the strong potential of the British market and and positioning, accelerated our innovation
engaged people. All of our concrete strategic the commitment to our customers. This new, strategy in all business segments and unrolled
initiatives and decisions are both driven and state-of-the-art plant will feature energy- and a digital knowledge centre to share know-how
enabled by this three-pillar agenda, which resource-efficient production technologies. and best practices.
requires the dedication of every single Etex
colleague around the world. In order to maximise our position in fibre We have also reached four important digital
cement, the Exteriors division was launched milestones in 2019: the creation of a dedicated

Profitable growth
in January 2019. It centralises the production
capabilities, resources and technologies
digital team, the launch of communication
platform Hubster, the introduction of a
Our deepest gratitude
of all our fibre cement activities, achieving Building Information Modelling (BIM)
When it comes to embracing a dynamic global
Financial results greater agility, alignment and customer automation tool, and the fast rollout of
environment, harnessing its opportunities and
centricity. While 2019 was a transitional year, Salesforce.
transforming the world in the process, we cannot do
We recorded remarkable financial results in robust foundations in quality, innovation and
this without our people. We extend our deep appreciation
2019 as a group, with mixed divisional results branding were laid, paving the way for a Last but not least, we have decided to create a
to all of our employees for their commitment to our
adding up to record top-line growth. Our promising future. new division dedicated to lightweight, dry and
ambitions and willingness to adopt new ways of
Building Performance, Residential Roofing and modular building technologies. Operational
working, thinking and acting to transform Etex
Industry divisions delivered strong growth, In Residential Roofing, we have divested since January 2020, New Ways combines our
into the building materials company of the future.
while Exteriors was down in the context of a two large businesses last year, Marley Ltd expertise in fibre cement and plasterboard
transitional year. Both the REBITDA and net (UK) and Umbelino Monteiro (Portugal). solutions with new methods of construction
Our heartfelt gratitude also goes to our
recurring profit (Group share) of Etex have This decision is fully aligned with our strategy, that are faster, more sustainable, resource
shareholders, partners and customers for
recorded double digit growth, while the net as roofing tiles and components fall outside friendly and affordable than traditional
their continuing trust in Etex.
financial debt has decreased with more than the scope of our ambition to become a approaches. The division specialises in
EUR 360 million year-on-year, to reach its global player in lightweight and modular two core modular building technologies,
lowest level since 2011 (read more on p. 15). construction. In Germany and Eastern Europe, wood and steel framing.

12 13
 About Etex Etex
shareho
Message to shareholders Annual Report 2019

The currently ongoing coronavirus crisis

will obviously have a major impact on our
How did our On a like-for-like basis, Etex’s revenue grew
by 4.9% to EUR 2,940 million.
performance in 2020, although it is currently
impossible to accurately determine it. We are confident
businesses Building Performance recorded significant
2019 was a record year in
terms of Etex’s net recurring
that our financial position, strong balance sheet at the
end of 2019 and available financial resources will allow
perform in 2019? like-for-like revenue growth of 8.0%, with
strong performance in almost all geographies.
profit (Group share),
which increased by 12.7%
us to face the situation. We are determined to Excluding the two businesses divested in 2019, to EUR 187 million. This strong
take all the necessary measures to protect our Residential Roofing recorded a like-for-like performance was achieved even in the
employees, to support our customers by revenue increase of 3.9%, mainly thanks to face of increased net financial charges
keeping our business running, and to the strong performance of the Creaton brand primarily due to the newly recognised lease
continue to Inspire ways of living. in Eastern Europe. The Exteriors division debt. Cash generation reached EUR 152 million
experienced a transitional first year, with a before dividends, acquisitions and business
3.1% like-for-like reduction of revenue disposals – also a performance milestone.
attributable to Northern Europe, Germany,

Op
Operational
perrational Latin America and the United States. The
revenue of the Industry division grew by
Etex’s net financial debt decreased strongly
to EUR 331 million at the end of December
performance
pe
erfo
ormance e 4.3% like-for-like, with strong revenue growth
recorded for the third year running.
2019, despite the impact of additional lease
debt caused by compliance with new lease
accounting rules. The reduction can be
New
w organisational
organ
nisational structure • Kick-off of the seven workstreams: Building a sustainable, socially responsible
Like-for-like, Etex achieved a 15.6% attributed mainly to proceeds from the sale of
manufacturing, supply chain, finance, organisation founded on integrity
REBITDA improvement over 2018, reaching Residential Roofing businesses in the UK and
Etex’s new structure was discussed in human resources, SAP, CRM and master
EUR 483 million. This performance is mainly Portugal and the continuing favourable effects
the 2018 annual report and continues
continue to data Our new global code of conduct, ‘The Etex
attributable to the combination of the increase of the non-recourse factoring programme set
be highly relevant to our 2019 results.
result • Simplification of strategic Way’, was launched in 2019. It clarifies Etex’s
in volumes and an improved gross profit. up in 2015.
A common theme throughout this y year’s and forecasting processes commitment to safety, ethics, integrity
Overheads have been contained following the
report is the increasing unity, align
alignment, • Opening of a Shared Services and its enhanced focus on compliance. It
execution of restructuring measures decided More details on our 2019 performance on
agility and focus that this new struc
structure Centre in Vilnius, Lithuania sets out the minimum standard to which
at the end of 2018. p. 26.
has given us. The creation of the Ne
New Ways • Go-live of first robot all colleagues must adhere so that Etex
division is a huge achievement on ththis front. for process automation can maintain its high ethical standards in
• Redesign of the performance all countries in which it operates. Our new
As part of our transformation journe
journey management process code is supplemented by an e-learning
towards a customer-centric organis
organisation, a module guiding employees through the
Supply Chain function has been created
cre at Relentlessly committed to zero accidents key principles that everyone should follow
group level, with the appointment o of a Head at all times. Completing this module is now
of Supply Chain in July 2019. Subseq
Subsequently, Safety was, is and will continue to be our top an integral part of the performance review Engaged people
a Supply Chain Center of Excellence is being priority, as illustrated by our cycle of all white-collar employees.
implemented to harmonise and improve
imp “Safety is key, it’s up to you and me” Introducing the Etex Awards Acting on our sense of purpose Fostering talent for the future
processes to world class levels. By driving
d slogan. Etex facilities around the world set Sustainalytics issued a report granting Etex
these processes we will improve botboth our new records for accident-free days – with an environmental, social and governance Responding to the results of our first global Last year, Etex partnered with non-profit The young talent today will be the Etex leaders
efficiency and our ability to partner with nine sites celebrating at least ten years of (ESG) rating score of 19.9. Etex ranks 9th employee engagement survey in 2018, organisation Techo, a Latin American of the future. To shape, develop and inspire
customers, as well as delight them. accident-free operations in 2019. out of 118 peers in Building Products we introduced the Etex Awards in 2019: housing initiative fighting poverty in our emerging talent, we organised the second
(Industry Group). The report states that three levels of recognition for individuals countries across the region, to build safe, edition of the Etex Explorer programme in
One
e Etex:
Etex: a movement in motion
motiion 19.73 safety training hours and 5.8 safety Etex is at low risk of experiencing material and teams that deliver exceptional beautiful, affordable and resilient modular 2019 in collaboration with Vlerick Management
conversations per employee were recorded, financial impacts from ESG factors, due to performance, significant financial impact homes for families in Peru. Our call for School (Belgium). Through this intensive
In 2018, we introduced One Etex: a g
global and corrective actions were taken following its low exposure and average management or breakthroughs on Etex’s strategic Etex volunteers generated a tremendous week-long programme, our most promising
movement that aims to align proce
processes, 86% of accidents, serious event reports and of material ESG issues. goals. 405 Etex Impact Awards and response, with over 400 candidates young colleagues have learned more about
activities and collaboration within our near misses. The gravity rate of accidents 66 Etex Excellence Awards were presented applying to participate. Together with Techo themselves, our organisation and the path to
organisation to take performance an
and decreased from 0.40 in 2018 to 0.11 last Targeting excellence in purchasing in 2019. Due to the outbreak of the experts, the Etex volunteers demonstrated sustainable profitable growth.
customer focus to new heights. After
Afte year, while the number and frequency of COVID-19 sanitary crisis, the presentation our shared commitment to ‘Connect and
launching the project at our annual Senior accidents remained steady. Moving forward, Last year, Etex continued its journey towards of the first Etex CEO Award has been Care’ by improving the living conditions of
Leaders Meeting, we reached severa
several we remain committed to becoming purchasing excellence, strengthening postponed until Q2 this year. nine families in the Ventanilla district near Paul Van Oyen,
milestones last year: a zero-accident organisation. category management and harmonising Lima. Moving forward, we will continue Chief Executive Officer
purchasing processes. These measures led to build on our collaboration with Techo
to material savings of EUR 47 million and and set up new projects embodying our Jean-Louis de Cartier de Marchienne,
will be amplified in 2020. “Inspiring ways of living” purpose. Chairman of the Board of Directors

14 15
 About Etex Etex
Key events 2019 Annual Report 2019

Milestones AUGUST | Etex announces the

sale of Marley Ltd, our subsidiary

of an
and the leading UK manufacturer and
FEBRUARY | Etex launches Cedral Terrace,
supplier of roofing tiles and components,
a new application for fibre cement boards
to Inflexion. This transaction is fully in line
for beautiful, durable and easy to install and
with the strategy of Etex focused on lightweight
maintain terrace planks. With this innovation

inspiring
construction and enables us to concentrate on
Etex carves out its own niche on the
our core businesses: plasterboards, fibre
European terrace plank market.
cement and passive fire protection
Read more p. 45 solutions.
SEPTEMBER | 80 customers

year Read more p. 53 from 9 countries gather in our

Innovation & Technology Centre in Avignon,
France, for the Innovation Days,
an international, cross-border discussion
about innovation.

Read more p. 34
MARCH | Etex partners with
Techo, an international NGO, to
help local communities build homes OCTOBER | Thanks to a strong
for vulnerable families. Sixteen volunteers focus on sales excellence, Etex signs
from all over the world help construct several an agreement with the Dangote Group
houses near Lima, Peru, contributing to our refinery in Nigeria. As part of this strategic
first global corporate social responsibility initiative, the Industry division will supply
(CSR) initiative. Promat Fendolite fire protection and
thermal insulation solutions.
Read more p. 88
NOVEMBER | E2E, the Chile-
Read more p. 63
based joint venture founded by
APRIL | On the occasion of the
Etex and Arauco, signs a share purchase
World Safety Day 2019, Etex takes its
agreement to acquire a majority stake in
safety insights beyond factory walls. Facilities
Etex Awards
Recognising and rewarding hard work
PASSION FOR
EXCELLENCE
Tecverde Engenharia, a Brazilian innovative
worldwide invite family members, partners,
CONNECT
AND CARE

PIONEER
TO LEAD

building company specialised in wood-

installers and dealers to participate
frame construction systems.
to local activities around safety. JULY | Etex launches the
Etex Awards, a global Read more p. 70
The Etex Way
Code of Conduct
safety, ethics, compliance & integrity Read more p. 78 reward and recognition
programme promoting Inspiring ways of working.
Does one of your colleagues work hard every day to create inspiring ways of living?
Then nominate him/her for an ‘Etex Award’. Just fill in the form that you can download
on Etex Core. Or get the paper version of this form in your working area and/or at your
local HR department.

ownership of line management Because outstanding performance and

extraordinary contributions
deserve recognition and a reward.

to stimulate our culture of people

1

management and feedback. Etex employees, DECEMBER | Three members

managers and Executive Committee of the Executive Committee
APRIL | Etex publishes its new code of
members can nominate their colleagues are leaving the company: Joëlle
conduct, The Etex Way, with the goal of
and teams. Boxus, Chief Human Resources Officer, JANUARY 2020 | To respond to
developing and maintaining a strong safety,
Alexander Carnevale, Chief Performance global macro trends like rapid
ethics and compliance culture. The Etex Way Read more p. 84 Officer, and Per-Olof Algotsson, Head of urbanisation, shortage of skilled
provides guidance in identifying
Building Performance. Their successors are labour and large housing deficits,
risky situations and key
respectively Louise Cail, Didier Staquet Etex creates a new division dedicated to
recommendations on how AUGUST | Etex sells
and Neil Ash. All three of them are new ways of construction and specialised in
to deal with them. Umbelino Monteiro, its clay
former Etex executives. modular construction. New Ways
tile business in Portugal, to roofing
will shape the building industry of
specialist Edilians as part of its strategy Read more p. 96
tomorrow by further developing
to focus on its lightweight construction
new construction methods.
core business areas in the context of
the ongoing residential roofing market Read more p. 70
consolidation across Europe.

Read more p. 53
16 17

17
 About Etex Etex
Our stakeholders Annual Report 2019

Financial
Our
Our commitment How we connect and collaborate

Optimally balancing sustainable Etex’s shareholders are presented with relevant information
stakeholders growth and profit while about our business during our annual shareholders' meeting.
guaranteeing transparent Full-year and half-year results as well as strategic decisions
Shareholders, investors

stakeholders
communication about our are communicated to our financial stakeholders through
and financial institutions.
performance press releases and other documents published on our
and outlook. website.

Customers, employees, partners, suppliers, shareholders, investors,

local communities... Our stakeholders are the drivers of what we do.
Internal Our commitment How we connect and collaborate

Maximising their safety, Our local businesses maintain a dialogue between more than
They help us determine the steps towards the future, not only when stakeholders collaborating openly and 13,000 employees in 42 countries through tailored communication
it comes to product and commercial excellence, but also in terms of transparently, and facilitating channels. We engage with our employees at group level through
Current and future employees,
personal and professional our new intranet platform Etex Core, events, webinars and various
sustainability and positive global impact. Providing them with relevant Senior Leaders and trade unions.
development. communication campaigns.
and accurate information about Etex is paramount to build a trust-based
Etex’s Senior Leaders from around the world gather annually and
relationship and to reach a higher level of transparency. attend webinars hosted by the Executive Committee every two
months. These events encourage our leaders to ensure that every
single one of our employees is informed.

In 2019 a Business Council was established, bringing together the

Executive Committee and various Senior Leaders. The Business
Council meets each quarter.

External Our commitment How we connect and collaborate

Diligently establishing and As specialists within their geographies, our local businesses
stakeholders building upon sustainable design and implement optimal communication channels with their
and transparent surrounding communities.
Local communities, NGOs, relationships.
At group level, we partner with international NGO Selavip, which
suppliers and the media.
supports housing projects for underprivileged people in Africa,
Our corporate
Asia and Latin America. We also launched our first group-wide
communications team
corporate social responsibility initiative in collaboration with Techo,
can be reached at
a community-building non-profit organisation. In March 2019,
info@etexgroup.com 16 Etex volunteers from various countries, divisions and levels
have worked together with their Peruvian colleagues as well as
with Techo. Together, they have successfully built 10 lightweight
construction houses in just a couple of days (see p. 88).

Press relationships are nurtured at a local level. Belgian and

foreign journalists are also in direct contact with Etex’s corporate
communications team.

Commercial Our commitment How we connect and collaborate

Proactively meeting their needs Each of our local businesses shares information with its customers,
stakeholders by offering superior products suppliers and other commercial stakeholders which suits their
in form and function, and needs. On group level, our Innovation & Technology Centre in
Architects, builders, construction
empowering them to Avignon, France, invited some 80 customers from nine countries
firms, distributors, contractors,
construct the most to co-innovate during our annual Innovation Days event, last year.
installers, specifiers and
efficient, ambitious Our purchasing team engages with our largest suppliers at
homeowners.
and inspiring projects. group level.

18 19

19
 About Etex Etex
Strategy Annual Report 2019

Our continuing Our

3 values
Developing people and
meaningful relationships
Connect
and Care

journey towards
a promising future Doing the right thing and
Passion for
Excellence

enjoying outperformance

In last year’s annual report, we presented an overview of the

megatrends driving our industry, the Etex purpose, our shared values
and our six strategic pillars. This year, we discuss the progress we have
made throughout 2019 on these six pillars as we solidify Etex’s role as a
focussed, global player in the building materials and solutions industry. Pioneer
to Lead
Driving valuable
change

Revisiting At the very core of the Etex essence is a

single purpose: inspiring ways of living.
efficient, and resource-saving benefits to the
entire supply chain via innovation, modular
our purpose, By leveraging our expertise and global
presence and by working as one to put our
technologies and lightweight construction. Empowering colleagues
through unity and

challenges, customers at the centre of everything we

do, we strive to inspire people worldwide
Beautiful
Our unique drylining, siding, façade and
shared values Engaged
people
opportunities to build living spaces that are safe,
sustainable, smart and beautiful.
terrace solutions offer aesthetic appeal,
personalisation and architectural freedom.
and strengths Safe In achieving our purpose, we face challenges
Etex’s innovative fire protection, as well as opportunities. In the midst of
plasterboard, fibre cement and insulation global megatrends such as population
Continuously improving
solutions protect buildings, infrastructure, growth, resource scarcity, regulatory
processes and
home appliances and even vehicles complexity, disruptive technologies and committing to safety Operational
from damage. housing crises, Etex is already the leader in performance
fire protection, insulation and fibre-cement
Sustainable solutions, and holds strong positions in all of
Our world-leading insulation, our markets and geographies.
lightweight and thermally efficient
products, and modular building
technologies optimise resource
By building on our strengths, we believe that
we are fully equipped with the resources,
Our 3
use. We strive to reduce waste
and boost efficiency in our
focus, talent and drive to harness industry
disruption, paving the way for agility,
strategic Innovation through
close collaboration with
own factories as well. partnerships and ever-more-effective
solutions. As part of this approach, we are
priorities our customers Profitable
growth
Smart convinced that lightweight and modular
Etex products and building technologies hold critical keys
solutions bring to a safer, smarter, more beautiful and
affordable, sustainable world.

20 21
 About Etex
Strategy

About Etex
Strategy

6 pillars of focussed components subjected to seismic and fire

following earthquake).
Following a comprehensive brand survey

growth: summarising and under the new tagline ‘Together,

creating a safe and sustainable future’,
the Industry division launched a brand
awareness campaign and new website

our progress in 2019 last year. The goal was to sharpen the
way Promat is commercialised worldwide.
There is now clear segmentation and brand
positioning which is shared throughout the
entire Promat sales organisation (see p. 64
for more details).

In order to become a more focussed player in our industry that is We are accelerating the execution of
prepared to meet the challenges of today’s dynamic world, we have our innovation strategy in all core business 5. Developing digital
segments, reducing project cycles where capabilities in key areas
defined six initiatives for strategic execution. In the following section, possible and prioritising most promising of the value chain
we highlight our key advancements in 2019. innovations. We have launched the
PROMETECT TF-X fire board for 2019 was a capstone year for
tunnels and PROMASTOP FC-MD for Etex in terms of digital capabilities 6. Making targeted investments
fire stopping applications. development. Four important in lightweight and modular
milestones were reached: construction methods
1. Managing our strong position applications for architectural, residential
In order to share fire safety expertise and
in plasterboard and agricultural customers, the goal of this
best practices within Etex, the Minerva 1. Introducing a dedicated digital team Etex’s future lies in lightweight, dry and
new division is to optimise synergies in
knowledge centre was launched in 2019. Beginning with a digital strategy rooted modular construction techniques. Not only
In 2019, we committed to the biggest production and go-to-market strategies,
Moving forward Promat will intensify in the Etex purpose, we formed a cross- do these industrialised building technologies
investment in the history of Etex in the UK, unlocking greater agility, alignment and
investments in digital solutions, bringing divisional, cross-functional digital team. and approaches optimise the use of water
Europe’s largest plasterboard market. This customer centricity (see p. 40 for more
new value to our customers and improving and raw materials, they are also faster,
new plasterboard factory in Bristol – a GBP details).
their experience with fire protection. New 2. Hubster launch cleaner, more affordable, high performing
140-million investment – will bring us even
initiatives will focus on improving efficiency, This new digital platform will be the and easily customisable.
closer to our customers and empower us to As innovation is also part of our history since
high quality and uncompromised safety. foundation for everything we do at
harness a growing lightweight construction day one, we extended our activities into
Etex. It centralises information, content, As of January 2020, Etex’s participation
and plasterboard market (see p. 33 for more decking with Cedral Terrace: a beautiful,
4. Continuing to develop our roofing apps and tools and interconnects both in E2E, the Etex-Arauco joint venture that
details). durable material that offers a unique
position processes and people. In May 2020, develops and manufactures wood-framing
experience (see p. 45 for more details).
high rise buildings, airports, tunnels and a Hubster-based customer portal will end-to-end building solutions, and EOS, a
In 2020, we will focus on fully
Moving forward, our strategy is to build commercial projects all over the world. In line with our strategic decision to become be launched, empowering our customers steel framing business acquired by Etex in
commercialising this residential product.
on our existing stronghold markets in Last year we delivered the single largest a world-leading player in lightweight and through self-service and fostering 2016, are now the domain of our brand new
Europe and Latin America, strengthening order of fire boards in our history for the modular construction, we have divested deeper relationships. division, New Ways. Further underlining
In the building boards segment, we
our position there. Managing our margins Gaasperdammertunnel in Amsterdam, two large Residential Roofing businesses Etex’s commitment to lightweight and
have successfully maintained our position
efficiently will be crucial here, as illustrated the Netherlands. Our passive fire protection last year. 3. Building Information Modelling (BIM) modular, E2E also finalised the acquisition of
in markets where we are the leader.
by the favourable global results of the solutions were installed in the new Deloitte Etex’s new BIM factory project kicked off Brazilian wood-based framing technology
In the other markets, we have improved
Building Performance division last year Office building in Luxembourg as well Marley Ltd, our leading UK business for the last year. This powerful tool will automate pioneer Tecverde in early 2020.
our profitability through added
(see p. 32 for more details). as in the new Montlégia hospital in production of roofing tiles and components, BIM creation anywhere in the world,
value applications.
Liège, Belgium. was sold to Inflexion in August. The same enabling Etex to respond to local needs In gathering the expertise and technologies
2. Maximising our fibre cement position month, our Portuguese clay tile business as they emerge. In rethinking the value of these important modular and lightweight
3. Strengthening our Promat brand Through the Promat brand, Etex actively Umbelino Monteiro was acquired by chain, BIM will offer Etex a significant building businesses, we solidify our goal of
As a result of the January 2019 launch of contributes to European fire safety roofing expert Edilians. Both are strong strategic advantage. shaping the future of construction – first in
the new Exteriors division, all Etex activities Promat is Etex’s world-leading brand organisations and construction industry parent companies and will provide new Europe and Latin America, and then across
related to fibre cement now share the same for passive fire protection and thermal safety standards. We have been selected as opportunities to these companies (see 4. Fast rollout of Salesforce the globe.
production capabilities, resources, network insulation, offering expertise and solutions technical partner for the European Research p. 53 for more details). Etex will Salesforce was successfully launched
and technologies. As our fibre cement to help make the world a safer place. These Project EQUFIRE (Multi-hazard performance continue to seek win-win opportunities to 34% system users, ten months after See p. 70 for more details on the New Ways
activities cover both façade and roofing solutions can be found in hospitals, schools, assessment of structural and non-structural in line with its strategy. the project started. division.

22 23
Discover all things Etex

Corporate Presentation
April 2019
Getting the detailed scope of…

P A R T I P A R T I I P A R T I I I

Who we are What we do What drives us

An international building materials Providing our customers with Creating a journey for our employees,
company with deep-rooted local aesthetically and technically superior customers, local communities and
presence. building materials. shareholders.

You’ll learn about our You’ll get to know our divisions You’ll find out about our
• International industrial company • Building Performance • Sense of purpose
with proven track record • Exteriors • Journey towards a promising future
• Customer centricity originating from • Industry • Belief in responsibility as a
our local anchorage conscious choice
• Residential Roofing
• Experienced management backed
up by family owners
• Sustainable profitable growth

2 Corporate presentation
PA R T I

Who we are
Proven track record spanning over a century
A story of geographic expansion

1905 1937 1950

Alphonse Emsens To safeguard Asia soon follows

sets up a fibre overseas export with a fibre
cement factory in markets, Eternit cement plant in
Belgium and installs its first the Philippines
founds Eternit fibre cement plant
in South America 1949
1930s

Eternit expands The building sector

and sets up new revives after WW2
branches in and Eternit opens
Europe a fibre cement
plant in Africa

“I like this image of a tree with a robust trunk that

grows new branches every year, while the existing
branches grow stronger.”
4 Corporate presentation – Jean-Marie Emsens, grandson of Etex’s founder
Proven track record spanning over a century
A story of product and technological diversification

1951 1957 1972 1978 1981 1985 1988

Ceramic
Passive fire
Vinyl floors Plasterboards Concrete tiles Plastics floor and Clay tiles
protection
wall tiles

5 Corporate presentation
 Growth by targeted acquisitions…
Strengthening our core business
Glynwed Pipe Systems (UK)
4,000

Cape Calsil Group (UK) Lafarge Gypsum (Europe and Latin America)

3,500
Pladur (Spain)
Marley (UK)
3,000

Meindl (Germany)
Creaton (Germany) Lafarge Gypsum (South
Revenue (in ‘000)

2,500 Ivarsson (Denmark) Africa)

Etex (France)

2,000

Eternit (Germany)

1,500 Microtherm (Belgium)

Euronit (Spain)
1,000

Split of the group into two entities

500 • Etex retaining all building material activities
• Aliaxis taking over the activities in plastics for the plumbing sector
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

6 Corporate presentation
… and continued organic development
Major greenfield investments around the globe

Brazil
Over the last
years investments
have been made in the
maintenance
of existing and the
construction of
Romania
new production
facilities

Peru

Indonesia

7 Corporate presentation
An international industrial company
Selective presence • Local anchorage • Major employer

Innovation & Technology

Countries Employees Factories Revenue
Centres

42 14,458 3 113 € 2.897

billion

8 Corporate presentation
sentation
Market intimacy as the cornerstone of our structure

4 global divisions – each targeting a well-defined business segment

Etex Etex
Building Etex Exteriors Etex Industry Residential
Performance Roofing

Plasterboards, plasters Architectural, High performance Concrete and

and formulated residential and insulation and clay tiles,
products, fibre cement agricultural fibre fire protection roof components
boards, passive fire cement materials solutions for industrial and systems
protection and players
associated products,
and dry construction
solutions

9 Corporate presentation
Customer intimacy is a cornerstone of our business

Our four divisions make and sell quality building solutions for

…and many more

10 Corporate presentation
An integrated R&D organisation
More than 30 million euro are invested in innovation annually

Tisselt
Sint-Niklaas

Burton upon Trent 3

Kapelle-op-den-Bos
Kapelle-op-den-
-Bo 6 affiliated
Innovation &
application 140
Technology
& development R&D employees
Centres
centres
(ITC)
Heidelberg
Paris
Avignon

Linz

Kuala Lumpur

ITC ITC ITC

Avignon, France Kapelle-op-den-Bos, Belgium Tisselt, Belgium

Roofing, façade & High-performance

Dry construction
dry construction insulation & Passive fire protection

11 Corporate presentation
A secure supply of various raw materials
Mix of own quarries and purchased resources

Fibres Cement Clay and gypsum Other

Sourced from a Widely available from Either we own the Such as paper, sand,
limited number of several suppliers quarries or we secure mica, coatings,
companies with long- supply via long-term wollastonite,
term relationships contracts vermiculite,...

18% 13% 8% 61%

Purchased materials

12 Corporate presentation
A well-defined governance structure
Board of Directors optimise performance while managing risks

} 12

Risk and audit Selection &

Strategy CSR
committee remuneration
committee committee
committee

(from left to right : Johan Van Biesbroeck , Teodoro Scalmani, Paul Van Oyen, Bernadette
Spinoy, Christian Simonard, Guillaume Voortman, Gustavo Oviedo, Jean-Louis de Cartier de
Marchienne, Pascal Emsens, Pierre Vareille, Caroline Thijssen, Philippe Vlerick)

Family shareholders’ representatives Other members

• Jean-Louis de Cartier de Marchienne, chairman • Paul Van Oyen, managing director
• Pascal Emsens, director • Gustavo Oviedo, director
• Christian Simonard, director • Teodoro Scalmani, director
• Caroline Thijssen, director • Bernadette Spinoy, director
• Guillaume Voortman, director • Johan Van Biesbroeck, director
• Pierre Vareille, director
• Philippe Vlerick, director
13 Corporate presentation
An experienced Executive Committee
Balanced between business and support functions

Paul Van Oyen • CEO and responsible for Etex Industry Division,
Communications, CSR and Legal
2011 - Head of the Fire Protection & Insulation Division Support functions
2007 - Managing Director for Eastern Europe
2004 - Business Development Manager Alex Carnevale • Chief Performance Officer and responsible for EHS,
Purchasing and Engineering
2014 - Business consulting
Business functions 2009 - Vice President Global Operations at AlliedSignal
2004 - Vice President and Managing Director Europe at AlliedSignal
Michael Fenlon • Head of Etex Exteriors Division
Mel de Vogue • CFO and responsible for IT
2010 - Managing Director of Etex cladding unit
2002 - Managing Director at Etex company Tegral 2013 - Co-CEO at Tessenderlo
1998 - Factory Manager at Etex company Tegral 2009 - CFO at Tessenderlo
2004 - CFO of Arjowigginse

Joëlle Boxus • Chief Human Resources Officer

Paul Van Oyen • Head of Residential Roofing Division a.i. 2005 - HR Manager at Kraft Foods
2009 - Global HR Director and member of the Executive Board of Directors at
Cargill Cocoa and Chocolate
2018 - Global HR Director Specialty Chemicals and Global Compliance Leader
at AkzoNobel

Per-Olof Algotsson • Head of Etex Building Performance Division Carla Sinanian • Chief Strategy Officer
2014 - GM and MD Global Downstream business, Owens Corning
2010 - Business and Managing Director EIMEA, H.B Fuller 2015 – Partner Deloitte Touche Tohmatsu
2000 – GM and MD EU fibres and global glass textiles, Johns Manville 2014 - Global Head of Business Unit Marketing & Strategy
2007 - VP of Strategy & Key Accounts, Global Sales & Marketing Philips NXP

14 Corporate presentation
Translating the trust we receive into profitable growth
Key figures

Revenue Recurring operating cash flow (REBITDA)

in million euro in million euro
3,500 500
3,000 2,897
2,500
400 405
2,000 300
1,500 200
1,000
100
500
0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Net recurring profit (Group share) Net financial debt

in million euro in million euro
200 1,000

150 166 750

584
100 500

50 250

0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

15 Corporate presentation
2018 results in detail
Consolidated income statement

16 Corporate presentation
2018 results in detail
Consolidated statement of cash flow

17 Corporate presentation
2018 results in detail
Consolidated statement of financial position

18 Corporate presentation
PA R T I I

What we do
Etex Building Performance
Solutions and brands

Products and solutions Main brands

Plasterboards for internal and Fibre cement boards for internal and
external applications external applications

Dry construction for prefabrication

Fire protection systems
and modular projects

20 Corporate presentation
Etex Building Performance
Who we are and where we want to go

Who we are Our ambition

Top 3 plasterboards Player in Europe and in To be a leading expert in dry construction by

Latin America leveraging unequalled technical know-how
to develop solutions today for the buildings
of tomorrow
Selected presence for fibre cement boards in
Europe, Indonesia and China with leading
positions in Latin America and Nigeria
What is dry or lightweight
construction?
The worldwide reference supplier for passive
fire protection solutions • Combines interior building boards
and exterior cladding boards on
timber or steel frames
• Is faster and more cost-efficient

21 Corporate presentation
Etex Building Performance
Stakeholders and markets

Main stakeholders Main markets

From highly-specified projects… (Multi-) residential Sports and leisure

• Architects
• Technical specifiers
Industrial Healthcare
• Main contractors

… to general sales Hotels Education

• Installers
• Builders
• Distributors Offices Tunnels

22 Corporate presentation
Etex Building Performance
Trends and competitors

Main trends Main competitors

Increasing use of modular and prefabricated building

methods, as customers want faster delivery

Growing demand for energy savings

and sustainable products

Rising use of digital technology to help customers

(Building Information Modelling)

23 Corporate presentation
Etex Building Performance ICE Conference & Congress
An essential part of eye-catching references Centre: some of Europe’s best
acoustics

Where
Krakow, Poland

When
2014

Who
Siniat

Applications
70,000 m2 of plasterboards
Acoustic ceilings
Balcony cladding
Staircase cladding

Watch the video

Architect - Ingarden & Ewý Architekci

24 Corporate presentation
Etex Building Performance Expo Milano: where
An essential part of eye-catching references sustainability and
efficiency reign

Where
Milan, Italy

When
2015

Who
Siniat

Applications
750,000 m2 of plasterboards
19 out of 53 pavilions

Photographer - Anna Positano

25 Corporate presentation
Architect - POSCO Engineering Co, Ltd.
Etex Building Performance Port Miami Tunnel
An essential part of eye-catching references

Where
Florida, USA

When
2014

Who
Promat

Application
51,934 m² of fire protection
boards and fire protection spray

Image used with the courtesy of Bouygues

26 Corporate presentation
Photographer - Daniel Azoulay
Etex Building Performance Moduplak temporary and
permanent dry construction
housing solutions

Where
Chile

When
2017

Who
Tejas de Chenas

Application
Wooden or steel frames
and finished with corrugated
sheet roofs

27 Induction programme
Etex Building Performance The Hong Kong-Zuhai-Macau
Bridge (HZMB) and tunnel
An essential part of eye-catching references

Where
China and Hong Kong

When
2015

Who
Promat

Applications
Fire-resistant boards and
applications

28 Induction programme
Etex Exteriors
Materials and brands
Materials
Fibre cement corrugated
Architectural fibre cement Residential fibre cement materials for Fibre cement corrugated
sheets low income
façade materials façade, roof and terrace sheets in agricultural roof
residential

Main brands

29 Corporate presentation
Etex Industry
Solutions and brands

Products and solutions Main brands

Calcium silicate insulation Microporous insulation Engineering services

Cementitious sprays Intumescent materials

37 Corporate presentation
Etex Industry
Who we are and where we want to go

Who we are Our ambition

We develop and manufacture thermal insulation To be the leading reference in selected

and fireproofing products and solutions fields of industrial business

Based on…
Calcium silicate, microporous materials, aerogel and
spray technology for industrial customers

For…
renewable energy, oil and gas, heavy industry,
marine, railway and aerospace

38 Corporate presentation
Etex Industry
Stakeholders and markets

Main stakeholders Main markets

• Installers Renewable energy Railway

• Contractors
• Engineering offices Oil and gas Aerospace
• Plant owners
• OEM manufacturers Marine OEM

39 Corporate presentation
Keeping all employees safe and sound
How safety remains key

Frequency rate
30 One goal - Zero accidents
25
20
2020 target numbers:
15
Frequency rate: < 1.0
10
Gravity rate: < 0.10
5
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Frequency rate : number of accidents per one million worked hours

Gravity rate

0.60
0.50
0.40
0.30
0.20 Safe equipment Safe procedures Safe behaviour
0.10 make sure machines implement global boost safety
0.00 are safe to operate guidelines awareness and
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Gravity rate : gives an indication of employees’ absence after an accident. and standards individual
The higher the rate, the more severe the accidents.
responsibility
55 Corporate presentation
Safety results have improved pointedly over the last decade
The number of companies without accidents keeps growing
Cartagena, Colombia, Araripina, Brazil
1 year without a lost time accident 14 years without a lost time accident
February 2019 December 2018

Fibrolith, Germany Ferrybridge, Siniat UK

1000 days without a lost time accident
Four years without a lost time accident
April 2017
November 2017

56 Induction programme
How we foster strong community bonds
Teaming up with global NGO Selavip and local partners

Ecuador Nigeria

Helping rebuild homes and lives Shelter in Owerri

Donating modular housing packs in the aftermath of the 7.8 Helping build lightweight construction homes for 8 displaced
earthquake in April 2016. refugee families.

Peru Indonesia

A safe home in Lima Improved living conditions in Tegalsari

Contributing to a safe home and hosting a Christmas party for Supplying building materials for the renovation of 50 homes in a
young girls, victims of abuse. disadvantaged neighbourhood.
57 Corporate presentation
Getting the detailed scope of…

P A R T I P A R T I I P A R T I I I

Who we are What we do What drives us

An international building materials Providing our customers with Creating a journey for our employees,
company with deep-rooted local aesthetically and technically superior customers, local communities and
presence. building materials. shareholders.

You’ll learn about our You’ll get to know our divisions You’ll find out about our
• International industrial company • Building Performance • Sense of purpose
with proven track record • Exteriors • Journey towards a promising future
• Customer centricity originating from • Industry • Belief in responsibility as a
our local anchorage conscious choice
• Residential Roofing
• Experienced management backed
up by family owners
• Sustainable profitable growth

58 Corporate presentation
Discover all things Etex

Corporate Presentation
April 2019