Company Strategy

SIG seeks to become the leading distributor of specialist building products in Europe. Its strategy is to develop and grow in its three core markets of Insulation and Energy Management, Interiors and Exteriors by combining the reputational strengths of its local brands with the scale efficiencies and know-how of a multinational group. Moreover, with its focus on specialist expertise and high customer service levels, SIG aims to continue to outperform its markets and thereby generate sustainable long term growth in shareholder value.

Growth Drivers

The main driver of demand for SIG’s products in the new build residential and non-residential markets is construction activity, which in turn is largely determined by economic growth. Conversely, demand for construction products in the RMI market tends to be more constant and in some markets can even be counter-cyclical to the macroeconomy.

Although current economic conditions are subdued, SIG believes that the medium to long term drivers for its products remain strong given that the current relatively low levels of residential and private non‑residential building activity do not appear sustainable when compared to demographic growth trends. Given the Group’s strong market position in the majority of the countries in which it operates, SIG believes that it is well positioned to benefit from any upturn in demand over the medium term.

Other demand drivers in addition to macroeconomic conditions described above are detailed as follows:

Insulation and Energy Management

• The need for reducing energy consumption and related costs, particularly given recent higher energy prices.
• Increasingly stringent government regulation across Europe aimed at lowering energy usage and reducing greenhouse gas emissions.

Exteriors

• The replacement of old/damaged roofs gives rise to an ongoing RMI requirement, providing a core product demand.
• Demand for new products to reduce building exterior maintenance costs.
• Growth of specialist distribution as the main supply route in the market.

Interiors

• Increasingly stringent fire and acoustic regulations, which as well as driving demand also benefits the larger specialist suppliers who can provide the necessary technical expertise.
• Increased demand for integrated solutions.
• Demand for higher standards of internal fit outs.