SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

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Financial and accounting information 2017 Consolidated financial statements

Provisions for claims and litigation 7.1.1. At December 31, 2017 and 2016, provisions for claims and litigation mainly covered asbestos-related lawsuits filed against the Group. These provisions are described in further detail in Note 7.2 "Contingent liabilities and litigation". Provisions for environmental risks 7.1.2. These provisions cover costs relating to environmental protection measures, as well as site rehabilitation and clean-up costs. Provisions for restructuring costs 7.1.3. Provisions for restructuring costs amounted to €79 million at December 31, 2017 (December 31, 2016: €99 million), including net additions of €40 million during the year. The provisions primarily concern Benelux (€26 million), Germany (€18 million), and the United Kingdom (€12 million). Provisions for personnel expenses 7.1.4. These provisions primarily cover indemnities due to employees that are unrelated to the Group’s reorganization plans. Provisions for customer warranties 7.1.5. These provisions cover the Group’s commitments under warranties granted to customers mainly in the United States. They are determined on a statistical basis using a range of criteria and take into account contractual warranty payments made in prior years in the business and region concerned. In addition, specific provisions may be set aside for identified risks. Provisions for other contingencies 7.1.6. At December 31, 2017, provisions for other contingencies amounted to €235 million (December 31, 2016: €281 million) and mainly concerned the United States (€59 million), France (€46 million), Germany (€43 million) and Brazil (€39 million). Investment-related liabilities 7.1.7. Investment-related liabilities correspond to commitments to purchase minority interests, liabilities relating to the acquisition of shares in Group companies, and minority shareholder puts. In 2017, changes in investment-related liabilities primarily concerned minority shareholder puts. Contingent liabilities and litigation 7.2. Asbestos-related litigation 7.2.1. Current legal actions related to asbestos are described below. Asbestos-related litigation in France 7.2.1.1. Inexcusable fault lawsuits a) In France, 10 further individual lawsuits were filed in 2017 by former employees (or persons claiming through them) of

Everite and Saint-Gobain PAM which in the past had carried out fiber-cement operations for asbestos-related occupational diseases they have or had. As at December 31, 2017, a total of 815 such lawsuits had been issued against the two companies since 1996 with the aim of obtaining supplementary compensation over and above the amounts paid by the French Social Security authorities in this respect. As of December 31, 2017, 775 of these 815 lawsuits had been completed in terms of liability and quantum as well as in terms of liability for the payment of compensation. In all these cases, the employers were held liable on the grounds of “inexcusable fault”. Compensation paid by Everite and Saint-Gobain PAM in settlement of these lawsuits totaled approximately €3 million. Concerning the 40 lawsuits outstanding against Everite and Saint-Gobain PAM at December 31, 2017, seven have been completed in terms of both liability and quantum, but liability for the payment of compensation has not yet been assigned. Out of the 33 remaining lawsuits, at December 31, 2017 the procedures relating to the merits of 28 cases were at different stages, with two in the process of being investigated by the French Social Security authorities and 26 pending before the Social Security Courts or the Appeal Courts. The last five actions have been canceled but the plaintiffs may request their restoration at any time within a two-year period following their cancellation. In addition, as of December 31, 2017, 228 similar suits had been filed since the outset of the litigation by current or former employees, or persons claiming through them, of 13 other French companies of the Group (excluding suits against companies that are no longer part of the Group), in particular by current or former employees who used equipment containing asbestos to protect themselves against heat from furnaces. As of December 31, 2017, 191 lawsuits had been completed. In 110 of these cases, the employer was held liable for “inexcusable fault”. The compensation definitively paid by these companies totaled approximately €6.1 million. With regard to the 37 suits outstanding at December 31, 2017, two cases were still at the investigation stage by the French Social Security authorities, 34 were being investigated – including 24 pending before the Social Security Courts, eight before the Appeal Courts and two before the Civil Supreme Court (Court of Cassation). Lastly, one suit has been canceled but the plaintiff may request its restoration at any time within a two-year period following its cancellation. Anxiety claims b) Eight of the Group’s French companies, including six that operate or have operated facilities classified as containing asbestos, are subject of damages claims that are different from those described above.

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