SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

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Financial and accounting information 2017 Consolidated financial statements

Segment information 3.2. In accordance with IFRS 8, segment information reflects the Group’s internal organization as presented to management. The Group has chosen to present segment information by sector and business in line with its internal reporting. There were no changes in the presentation of segment information in 2017 compared with prior years. Segment assets and liabilities include net property, plant and equipment, working capital, goodwill and net other intangible assets, after deducting deferred taxes on brands and land. Capital expenditure corresponds to acquisitions of property, plant and equipment and does not include the cost of acquiring non-current assets under finance leases.

Segment information is presented by sector and by business as follows: Innovative Materials (IM) Sector: „ Flat Glass, „ High-Performance Materials (HPM); „ Construction Products (CP) Sector: „ Interior Solutions: Insulation and Gypsum, „ Exterior Solutions: Industrial Mortars, Pipe and Exterior „ Products; Building Distribution Sector. „ Management uses several different internal indicators to measure operational performance and to make resource allocation decisions. These indicators are based on the data used to prepare the consolidated financial statements and meet financial reporting requirements. Intragroup (“internal”) sales are generally carried out on the same terms as sales to external customers and are eliminated in consolidation. The “Other” column includes holding companies and certain corporate support functions (tax, cash management, purchasing, etc.).

Segment information for 2017 and 2016 by sector and by business is as follows: 2017

Building Distribution Other*

Innovative Materials

Construction Products

Total

Intra- segment eliminations Total

Intra- segment eliminations Total

High- Performance Materials

Interior Solutions

Exterior Solutions

Flat Glass 5,633

(inɸ€ millions) External sales Internal sales

4,588

10,221 6,246

5,527

11,773 18,797

19 40,810

39

150

(27)

162

638

307

(94)

851

3 (1,016)

0

Net sales

5,672

4,738

(27) 10,383 6,884

5,834

(94) 12,624 18,800 (997) 40,810

Operating income Business income Share in net income of equity-accounted companies Depreciation and amortization Capital expenditure Cash flow from operations Goodwill, net Non-amortizable brands Total segment assets and liabilities Impairment of assets EBITDA

571 580

715 608

1,286 1,188

652 556

491 394

1,143

631 (32) 493 (120)

3,028 2,511

950

22

2

24

3

5

8

0

1

33

280

167

447

301

165

466

261

32 1,206

48

1

49

47

37

84

103 892 251

0

236

851 468

882 192

1,733

953 374

656 208

1,609

0 4,234 45 1,538

660

582

1,188

1,015 6,014

653

164 3,020

189

1,602

1,791 3,615

2,399

2,770

0 10,575

0

0

0

735

89

824

1,191

0 2,015

7,389

12,209

7,645

120 27,363

“Other” corresponds to the elimination of intragroup transactions for internal sales, and holding company transactions for the other captions. *

230 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017