SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

2017 results and outlook for 2018 Financial results

Interior Solutions like-for-like sales moved up 5.9% over the with an acceleration over the course of the year, but year and 7.6% in the second half, spurred by growth in Asia remained behind the sharp increase in raw material and and emerging countries. Volumes continued to pick up in energy costs. This led to a decline in the margin, at 9.5% in Western Europe and especially France. Trading in North 2017 versus 10.3% in 2016. America improved in the second half. Prices rose significantly,

Exterior Solutions

ORGANIC GROWTH

OPERATING INCOME

CAPEX

+6.7%

€491m

€208m

+4.2% +2.5% VOLUME PRICE

MARGIN

8.4%

2017 VS. 2016

Sales (€m)

Operating income and margin (€m -%)

8.4%

7.9%

2,958

2,876

2,753

2,670

249

242

229

202

5

8.3%

7.6%

8.4%

8.4%

H1-2016 H2-2016 H1-2017 H2-2017

H1-2016 H2-2016 H1-2017 H2-2017

Exterior Solutions reported 6.7% organic growth in 2017, driven by an improvement in all businesses in the second half had a very good year, reporting an acceleration in growth in (up 10.1%) and particularly Exterior Products in the US. In the the second half thanks to Asia and emerging countries, with second half, this business benefited from additional an improved performance in Brazil in a construction market weather-related demand in the US, whilst the pricing that nevertheless remains uncertain. The operating margin environment remained tough. Pipe began to recover, led by moved up to 8.4% from 7.9% in 2016 despite raw material and the rise in prices amid strong inflation in raw material costs; energy cost inflation. the upturn in Brazil and the improvement in China. Mortars

volumes were down over the year, hit by the lack of major export contracts, but stabilized in the second half thanks to

101 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017