SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

Financial and accounting information 2017 Consolidated financial statements

would lead to an increase of around €35 million in the related projected benefit obligation). Breakdown of and changes in pension 4.3.3. and other post-employment benefit obligations Net book value of provisions 4.3.3.1. Provisions for pensions and other employee benefit obligations consist of the following: (inɸ€ millions) Dec.b31, 2017 Dec.b31, 2016 Pension commitments 2,076 2,673 Length-of-service awards 361 355 Post-employment healthcare benefits 350 435

The rates used in 2017 for the Group's main plans are the following:

United Kingdom

United States

France Eurozone

(in %)

Discount rate

1.70% 1.70% 2.45% 3.60%

1.50% to

Salary increases

2.50%

2.40% 2.00%*

3.00%

1.40% to 1.80% 2.30% 2.50%

Inflation rate

1.50%

A cap applies to the reference salaries used to calculate benefit entitlements. *

The rates used in 2016 for the Group's main plans are the following:

TOTAL PROVISIONS FOR PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS

United Kingdom

United States

France Eurozone

(in %)

2,787

3,463

Discount rate

1.80% 1.80% 2.60% 4.10%

Healthcare benefits

25 15

27 20

1.40% to

Long-term disability benefits Other long-term benefits

Salary increases

2.50%

2.40% 2.00%*

3.00%

100

105

1.40% to 1.55% 2.35% 2.50%

PROVISIONS FOR PENSIONS AND OTHER EMPLOYEE BENEFITS

Inflation rate

1.50%

2,927

3,615

A cap applies to the reference salaries used to calculate benefit entitlements. *

Provisions for all other long-term benefits totaled €140 million at December 31, 2017 (€152 million at December 31, 2016). The following table shows net obligations under pension and other post-employment benefit plans and the related plan assets: (inɸ€ millions) Dec.b31, 2017 Dec.b31, 2016 Provisions for pensions and other post-employment benefit obligations - liabilities 2,787 3,463 Pension plan surpluses - assets (161) (41) NET PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS 2,626 3,422

Sensitivity of assumptions 4.3.2.2. A 0.5-point decrease (increase) in the discount rate would lead to an increase (decrease) in defined benefit obligations of around €190 million for the US plans, €215 million for the Eurozone plans and €475 million for the UK plans. A 0.5-point increase in the inflation rate would lead to an overall increase in defined benefit obligations of around €610 million. The same assumptions concerning mortality, employee turnover and interest rates are used to determine the Group’s defined benefit obligations for other long-term employee benefits. In the United States, retirees’ healthcare costs are projected to rise by 7.02% or 7.44% per year, depending on the age of the beneficiary (a 1-point increase in this rate

Analysis of obligations 4.3.3.2. At December 31, 2017, pension obligations and provisions for other post-employment benefit obligations break down by major geographic region as follows: Dec.b31, 2017 (inɸ€ millions ) France Eurozone United Kingdom United States Rest of the World Net total AVERAGE DURATION (IN YEARS) 16 17 18 13 15 16 Defined benefit obligations - funded plans 685 1,750 5,018 2,662 866 10,981 Defined benefit obligations - unfunded plans 297 116 0 315 188 916 Fair value of plan assets (261) (741) (4,899) (2,535) (838) (9,274) DEFICIT/(SURPLUS) 721 1,125 119 442 216 2,623 Asset ceiling 3 3 NET PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS 721 1,125 119 442 219 2,626

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237 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017