SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

Financial and accounting information 2017 Consolidated financial statements

Non-cancelable purchase commitments 3.6.3. Non-cancelable purchase commitments include contractual commitments to purchase raw materials and services along with firm orders for property, plant and equipment and intangible assets.

Payments due by period

Total 2016

Total 2017

Due within 1 year

Due in 1 to 5 years Due beyond 5 years

(inɸ€ millions)

Property, plant and equipment and intangible assets

48

45

3

0

49

Commodities and energy

1,308

354

669

285

1,080

Services

157

63

81

13

184

TOTAL

1,513

462

753

298

1,313

Guarantee commitments 3.6.4. In some cases, the Group grants seller’s warranties to the buyers of divested businesses. A provision is set aside whenever a risk is identified and the related cost can be estimated reliably.

The Group also receives guarantees, amounting to €78 million at December 31, 2017 (December 31, 2016: €93 million).

Commercial commitments 3.6.5.

Commitment amounts by period

Total 2016

Total 2017

Due within 1 year

Due in 1 to 5 years Due beyond 5 years

(inɸ€ millions)

Security for borrowings Other commitments given

39

17 88

12

10 29 39

41

237 276

120 132

214 255

TOTAL

105

Guarantees given to the Group in respect of receivables totaled €104 million at December 31, 2017 (December 31, 2016: €105 million). At December 31, 2017, pledged assets represented €330 million (December 31, 2016: €343 million). This change is primarily due to a decrease in pledges of property, plant and equipment in Brazil. Other commitments 3.6.6. A provision for greenhouse gas emissions allowances is recorded in the consolidated financial statements to cover

any shortage between the Group’s emissions and the allowances granted. Greenhouse gas emissions allowances allocated to the Group’s companies in 2017 represented approximately 3.2 million metric tons of CO 2 . The new 2018 allowances will be added to the residual inventory of prior allocations and will cover the level of greenhouse gas emissions for the year. As a result, no provision has been recorded in this respect in the Group’s financial statements.

NOTE 4

EMPLOYEES, PERSONNEL EXPENSES AND EMPLOYEE BENEFIT

OBLIGATIONS

Employees of fully consolidated 4.1. companies b 2017

Management compensation 4.2. Direct and indirect compensation and benefits paid to members of the Board of Directors and the Group’s senior management were as follows in 2017 and 2016: (in € millions) 2017 2016 Attendance fees 1.1 1.1 Direct and indirect compensation (gross) Fixed portion 8.6 8.9 Variable portion 5.8 4.4

9

2016

Managerial-grade employees Administrative employees

28,991 75,664 71,795

27,677 74,202 70,184

Other employees

TOTAL AVERAGE NUMBER OF EMPLOYEES

176,450

172,063

Estimated cost of pensions and other employee benefit obligations (IAS 19) Share-based payment expense (IFRS 2) Termination, retirement and other benefits

The total number of Group employees for fully consolidated companies was 179,149 at December 31, 2017 and 172,696 at December 31, 2016.

3.2

3.4 8.5

11.1

0,1

0,0

TOTAL

29,9

26,3

235 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017