A long-term investor
Wendel is a hands-on investor and shareholder that assists sector-leading companies in their long-term development. Wendel's business model combines the entrepreneurial passion born of a long family tradition with a culture of performance and accountability.
Materis
Chemicals for construction
87 industrial facilities in 24 countries • 9,300 employees • 360 sales outlets for paints and decoration products
| (in millions of euros) | 2007 | 2008 | Δ |
| Net sales | 1,817 | 1,867 | +2.8% |
| Adjusted operating income (1) | 227.4 | 214.6 | -5.6 % |
| as a % of net sales | 12.5% | 11.5% | |
| Net income from business sectors (2) | 46 | 33 | -28% |
| Net financial debt | 1,765 | 1,781 |
(1) Adjusted operating income before accounting entries on
goodwill allocation, management fees and non-recurring items.
(2) Defined on the “Key Figures” page.
How Wendel is involved
• Management Board:
Bernard Gautier beginning April 20, 2009, Jean-Michel Ropert, Stéphane Bacquaert, Patrick Bendahan (managers)
• Appointments and Compensation Committee:
Bernard Gautier (Chairman) beginning April 20, 2009
• Audit Committee: Jean-Michel Ropert (Chairman), Stéphane Bacquaert
Why we invested
Materis is a leader in specialty materials. It is n°1 worldwide in Aluminates, n°1 in France in Admixtures, n°1 in France and Italy in Paints, and n°2 in Portugal and co-leader in France in Mortars. Its high-value-added products are quite innovative on the market. Emerging markets (Asia, Latin America and the Mediterranean rim) and the renovation and non-residential markets offer new sources of growth.
How Wendel has helped Materis expand
Since 2006, Materis has successfully integrated 30 acquisitions while unlocking numerous synergies that are sources of future growth. Materis innovates constantly to enhance its development. For example, working groups across the lines of the Group’s various activities have helped adapt products to new standards, design niche products that combine organic and mineral technologies, and offer solutions better adapted to users’ working conditions and the environment. The "24H de l’innovation" initiative, which brought together the scientific and marketing communities, produced some progress-generating ideas for Materis.
*In equity and shareholder loans
Remarkable resiliency in a glum economic environment
In 2008, Materis’ net sales rose 2.8% to €1,867 million. After a fast-growing first half in 2008, Materis ran into the sharp downturn in the global economic and financial environment. It nonetheless generated 1.6% internal growth through innovation and improvements in product mix and through its ability to pass on higher raw material and energy prices in its sale prices. Brisk business in emerging markets helped mitigate somewhat the declines in mature countries on the construction market, particularly in Spain, Portugal and the US.
Adjusted operating income came to €214.6 million for 2008, with the operating margin falling by 1 point, as manufacturing costs (sourcing, production and logistics) rose faster than sales. Overheads and depreciation rose in line with net sales. Net financial debt increased by €16 million in 2008, €25 million of which resulted from external growth.
Outlook
Materis is aggressively pursuing it adjustments in order to preserve its margins in the midst of a slumping and highly volatile global economic context. This will include a 33% reduction in investments in 2009. Materis will step up its initiatives in innovation and organic growth in order to partly offset its shrinking volumes through a constant improvement in its product mix and its price premium.
