SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

9

Financial and accounting information Compagnie de Saint-Gobain 2017 annual financial statements (parent company)

NOTE 4

EXCEPTIONAL INCOME AND EXPENSE

The Company reported a net exceptional expense of €12.3 to the accounting charge related to long term compensation million primarily due to exceptional costs incurred following plans, partially offset by a €20.6 million tax provision reversal, the cyber-attack experienced by the Group in June 2017, and mainly coming from the German branch.

NOTE 5

INCOME TAXES

a net tax profit of €28 million for the German branch; „ The French tax group generated a tax loss in 2017. The Group also has unused tax loss carry-forwards. At December 31, 2017, unused tax loss carry-forwards represented €793.9 million. Compagnie de Saint-Gobain’s permanent German establishment, which is the Group’s leading entity under the Organschaft local consolidation regime, reported a tax credit in 2017. At December 31, 2017, future tax savings corresponding to the branch’s unused tax loss carry-forwards amounted to €44.9 million. In both cases, these future tax savings have been recorded in the consolidated financial statements, but not in the parent company financial statements.

The Company recorded an income taxes profit of €14 million, corresponding primarily to: a tax charge valued at €14 million under the 2017 tax „ consolidation regime (France) This figure includes corporate taxes, additional contributions to corporate taxes, the 3% tax on dividends, and the impact of all rulings and claims on all these taxes and contributions. Income taxes recorded in Compagnie de Saint-Gobain accounts reflect its tax position towards the French tax administration, but also towards consolidated companies in its capacity as consolidating parent company.

NOTE 6

INTANGIBLE ASSETS

Intangible assets

Amortization

Accumulated at Dec. 31, 2017

Accumulated at January 1,

Gross at Dec.b31, 2017

Gross at Januaryb1,

Net at Dec. 31, 2017

2017 Increases Decreases

2017 Additions Disposals

(in EUR thousand) Purchased goodwill Other intangible assets Intangible assets in progress

567

0

0

567

567

0

0

567

0

49,284

1,616

(8)

50,892

39,275

2,767

(8)

42,034

8,858

2,114

2,408 4,024

(977) (985)

3,545

0

0

0

0

3,545

51,965

55,004

39,842

2,767

(8)

42,601

12,403

NOTE 7

PROPERTY, PLANT AND EQUIPMENT

Property Plant and Equipment

Amortization

Accumulated at Dec. 31, 2017

Accumulated at January 1,

Gross at Dec. 31, 2017

Gross at Januaryb1,

Net at Dec. 31, 2017

2017 Increases Decreases

2017 Additions Disposals

(in EUR thousand)

Land

51

0 0

0 0

51

0

0

0 0

0

51

Buildings

1,400 9,136

1,400

610

65

675

725

Other

3,896

(264)

12,768

5,397

2,203

(262)

7,338

5,430

Assets under construction Prepayments

2,451

6,913

(382)

8,982

0 0

0 0

0 0

0 0

8,982

0

0

0

0

0

13,038

10,809

(646)

23,201

6,007

2,268

(262)

8,013

15,188

Additions to assets under construction are mostly expenditures related to the construction of Compagnie de Saint-Gobain future headquarters which are the responsibility of the lessee.

284 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017