SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

5

2017 results and outlook for 2018 Financial results

c)

Building Distribution

ORGANIC GROWTH

OPERATING INCOME

CAPEX

+3.6%

€631m

€251m

+1.9% +1.7% VOLUME PRICES

MARGIN

=

3.4%

2017 VS. 2016

INDUSTRIAL ASSETS AT END-2017

2017 SALES

46%

25%

Sales (€m)

Operating income and margin (€m -%)

3.4%

3.4%

9,456

383

363

9,344

9,144

9,104

253

248

2.8%

4.0%

2.7%

4.1%

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

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

Building Distribution posted 3.6% organic growth for the in the first half, with prices rising but volumes down. Germany year, with 4.1% in the second half. Trading in France and Brazil contracted slightly. The operating margin for 2017 continued to recover, led by good momentum in new-builds remained stable at 3.4%, despite the impact of the and the progress in renovation. Nordic countries enjoyed cyber-attack and of the acceleration in digital investments, robust growth throughout the year, as did the Netherlands edging up to 4.1% in the second half (versus 4.0% in and Spain. The UK grew at the same rate in the second half as second-half 2016).

102 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017