Saint Gobain - Registration document 2016

2 ONE AMBITION: TO IMPROVE THE WELL-BEING OF ALL 1. The Group and its environment

1.3

THE CHALLENGE OF POPULATION GROWTH AND URBAN

DEVELOPMENT

population was living in towns and cities, a figure that will Since 2011, the global population has exceeded the 7 billion mark and is expected to reach 9.7 billion by 2050 (1) . This demographic growth is accompanied by rapid urbanization. In 2014, there were 17 countries where more than 90% of the

for housing and infrastructure, particularly in currently mid-sized cities that are destined to become megacities (1) . have almost doubled by 2050 (1) . The rural exodus today is concentrated in Asia and Africa, resulting in growing demand

DEMOGRAPHIC GROWTH AND URBANIZATION (1)

9.5 bn

7.2 bn

65%

4.5 bn

WORLD POPULATION

52%

2.5 bn

1.7 bn

40%

RATE OF URBAN DEVELOPMENT

30%

20%

1910

1950

1980

2013

2050

In developing countries faced with the persistence of slums, access to housing is a major social and economic challenge that calls for appropriate solutions. At the same time, the emergence of a vast middle class, including in Africa, is

purchasing power of the people and with increasingly high comfort requirements. stimulating new demand in conjunction with increased

1.4

THE CHALLENGE OF THE DIGITAL TRANSFORMATION

with their stakeholders (customers, staff and suppliers). to avoid new intermediations. For differentiation, it is no longer just the company’s product that counts, but the services that go along with it. Digital technology is reshaping the competitive balance and the way that businesses interact early 2000s. China, which became the world’s largest market for B2C online sales in 2015, is catching up quickly in the B2B segment (2) . The low cost of investment to launch an online commerce platform has reduced barriers to entry, while asymmetry of information between sellers and customers is falling. Companies must now be closer to their end customers Digital technology is redefining trade, with a very high annual growth rate for e-commerce throughout the world since the

Digital technology is also revolutionizing the way that factories are organized and is producing a major, gradual change in production methods, by providing real-time access to a wealth of information on industrial facilities that are now interconnected and enabling extensive analysis of these data. Progress can thus be seen on two fronts: on the one hand, in the increase in productivity that results from reductions in stock, breakdowns, lost time and scrap material and on the other, in improved flexibility of production processes. Industry 4.0 opens the doors to mass customization, which relies in particular on locating assets as close as possible to end customers.

World Urbanization Prospects: The 2014 Revision, Highlights - United Nations. (1) Unlocking the Potential of e-commerce for Developing Countries, 2015 Information Economy Report, United Nations Conference on Trade and (2) Development (UNCTAD), 2015.

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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