Saint Gobain - Registration document 2016

3 STRATEGIC DRIVERS FOR SUSTAINABLE GROWTH 1. Balancing the Activities to ensure the Group is resilient

in developed countries by focusing Controlling capital investments

1.1.2

investments: emerging countries. Notably through the following In 2016, Saint-Gobain also strengthened its positioning in insulation plant in Saudi Arabia, and a plasterboard factory the Construction Products Sector has set out a new ‹ production site in Wuhan, China. This is the Group's 35th in India. Saint-Gobain Weber inaugurated its new presence in Qatar through a new distribution center; plant in the country. Saint-Gobain PAM strengthened its a new coater in Mexico has also been announced; coater in India, as well as in a new line dedicated to glazing has significantly invested in a new float and a new ‹ automotive glass in the Czech Republic. An investment in within High Performance Materials, more specifically ‹ (India) was inaugurated. Saint-Gobain SEFPRO, a new refractory site in Perundurai differentiated solutions tailored to the peculiarities and The Group’s development strategy thus allows it to offer hot regions in China and the Middle East (PAMboo), to constraints of local markets: from designing pipe solutions for coming years, the Group intends to pursue its strategy of low-cost habitats in Latin America (Brasilit roofing). In the significant investing in high-growth countries.

investments resources on productivity

between 27% and 29% by 2018, specifically by reducing the 2018. The objective to increase the flexibility of Saint-Gobain’s capital intensity of Flat Glass by 15 points between 2012 and implemented by gradually refocusing the businesses on business in response to market fluctuations is being is the expansion of Sekurit’s Autover glass replacement downstream activities with low capital intensity. An example subsidiary. intensity (the ratio of industrial assets to annual sales) Saint-Gobain is seeking to reduce the Group’s capital Thus, in 2016, the Group gave priority to investments in automation, IT, productivity, and logistics. For example, PUM Glass Bâtiment France has also opened five logistics Plastiques has inaugurated a new logistics base in France. manufactures flat glass for residential and commercial platforms. The Salaise-sur-Sanne float line in France, which technical and environmental performance. buildings, has been renovated and modernized to improve its

3

DISTRIBUTION OF INDUSTRIAL ASSETS BY REGION

24% FRANCE

35% EMERGING COUNTRIES AND ASIA

26% OTHER WESTERN EUROPE COUNTRIES

15% NORTH AMERICA

Industrial investments (excluding finance lease, excluding Packaging Sector)

2016

2015

(in EUR million)

Innovative Materials

573

529

Flat glass

375

311

High-Performance Materials

198

218

Construction Products

515

528

Interior Solutions

337

312

Exterior Solutions

178

216

Building Distribution

245

231

Other

37

58

TOTAL OF THE GROUP

1,370

1,346

51

SAINT-GOBAIN - REGISTRATION DOCUMENT 2016