Saint Gobain - Registration document 2016

7 RISKS AND CONTROL 1. Risk factors

challenging this complaint. The hearing was held on May 11, Saint-Gobain Isover and Compagnie de Saint-Gobain are postponed to a date not yet known. 2016. The Competition Authority’s final ruling has been writ on Saint-Gobain Isover, the Centre Scientifique et In the civil law area, in March 2013 Actis served a civil liability Technique du Bâtiment, and the FILMM before the Paris Civil consequences of facts forming the subject of the Court (Tribunal de Grande Instance) for the adverse December 16, 2014, the pre-trial judge declared a stay of investigation by the Competition Authority. In an order dated Competition Authority. proceedings while waiting for the decision from the States drywall industry United States Department of Justice in the United Investigation by the Anti-trust Division of the In July 2015, the Anti-trust division of the United States Department of Justice opened a criminal investigation into agreement, in the United States drywall industry. This potential anti-competitive practices, specifically a price of class actions in the civil courts against eight drywall investigation followed complaints filed in late 2012 in the form of their customers. manufacturers in the sector, including CertainTeed, by some identified any element that might create liability for civil proceedings, CertainTeed and its attorneys have not On the basis of testimony and documents submitted in the judgment in May 2015 in order to end the civil proceedings. CertainTeed, and as a result filed a motion for summary competent court. An appeal against this decision is still This application was accepted on February 18, 2016 by the possible. c) Environmental-related litigation PFOA matters in the United States Levels of PFOA (perfluorooctanoic acid) in excess of U.S. advisories have been found in municipal water systems and Environmental Protection Agency (EPA) or state health private wells near current Saint-Gobain Performance Plastics (SG PPL) facilities in Hoosick Falls (New York) and Merrimack

(polytetrafluorethylene) have never been manufactured by Bennington (Vermont) in the United States. PFOA and PTFE purchases from third party suppliers and which in the past these plants. SG PPL is a processor of PTFE which it (New Hampshire), and two former facilities in North contained traces of PFOA. SG PPL has voluntarily provided bottled water in all three communities, installed point-of-entry treatment systems to Bennington areas, and installed carbon filtration systems on residents and businesses in the Hoosick Falls and North voluntarily committed to fund water line extensions in certain the municipal water supply in Hoosick Falls. In addition, it has on-going and the scope of responsibility for SG PPL arising communities in the Merrimack area. The investigations are these sites has not yet been established. Responsibility, if any, from environmental remediation and clean-up obligations at particular the Hoosick Falls’ site. is expected to be shared with other parties as regards in PFOA-related lawsuits alleging both health-related and New York, New Hampshire and Vermont, some of which are economic damages claims have been filed in civil courts in the timing or outcome of any such litigation, or whether any in the form of proposed class actions. It is difficult to predict On December 31, 2016, the Company established a provision and various costs. in the amount of USD 23 million in connection with defense additional litigation will be brought against SG PPL. could have or which has had, in the last 12 months, a Company and/or the Group might be threatened) which Company and/or Group. Note 7 to the Consolidated Financial significant impact on the financial or profit position of the (including pending proceedings or proceedings where the other government, court or arbitration proceedings exist Statements (see chapter 9, section 1) is related to the provision for claims and litigations. described above, to the best of the Company’s knowledge no authorities. Apart from the proceedings and litigation other claims made by their employees or by the tax Some of the Group’s companies may also be the subject of d) Other proceedings and disputes

7

1.5

INSURANCE

The Group transfers its risks to the insurance market when this is the most efficient solution. Default by one or more of the Group’s insurers could therefore lead to financial losses. purchase insurance coverage to protect its assets and The Group’s policy is to implement preventive programs and which takes into account current conditions in the insurance revenue. This policy is embedded within a Group doctrine, Risks and Insurance Department. It defines insurance criteria market. It is determined, coordinated and overseen by the

interruption, as well as general and product liability. for the most significant risks, such as property and business For other types of coverage, such as automobile fleet individual operating units on policy content, broker selection insurance, the Risks and Insurance Department advises the “high-frequency” risks, for which claims are monitored and which market to consult. These are called were renewed as 2016 policies. internally and appropriate action taken. The 2015 policies

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016