SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

2017 results and outlook for 2018 Financial results

Strategic priorities and outlook 1.3

The Group continued to implement its strategic priorities in 2017: €290 million in cost savings versus 2016, ahead of our „ objectives, as part of the €1.2 billion cost reduction program for 2017-2020. Our focus on Industry 4.0 and digitalization is beginning to bear fruit; 28 acquisitions of small and mid-sized companies for a „ total of €641 million and disposals for a total of €213 million, as part of the portfolio optimization strategy targeting €2 billion in acquisitions for 2017-2020; 8.3 million shares bought back (€403 million) in line with „ long-term objectives, and 7 million shares canceled, thereby reducing the number of outstanding shares to 550.8 million at December 31, 2017 (553.4 million at December 31, 2016). In 2018, the Group should benefit from a supportive economic environment: further growth in France, led by the new-build market and „ by progress in renovation; progression in other Western European countries, despite „ continued uncertainty in the UK; growth in North America, in both construction markets „ and industry; good momentum in Asia and emerging countries . „

For 2018, the Group expects the following for its Business Sectors: continued growth and a good margin level in Innovative „ Materials ; better volumes and prices, focus on the price-cost spread „ in Construction Products ; Building Distribution should benefit from volume growth „ in Western Europe. Saint-Gobain will continue its disciplined approach to cash management and financial strength. In particular, it will pursue: its focus on sales prices amid continued inflationary „ pressure on costs; its cost savings program, with the aim of unlocking „ additional savings of around €300 million (calculated on the 2017 cost base); its capital expenditure program of around €1.7 billion „ (representing around 4% of sales, in line with our objectives), with a focus on growth capex outside Western Europe and also on productivity (Industry 4.0) and digital transformation, particularly in Building Distribution; its commitment to invest in R&D to support its „ differentiated, high value-added strategy; its focus on high levels of free cash flow generation . „

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The Group is targeting a further like-for-like increase in operating income in 2018.

These statements on outlook constitute either trends or objectives, and are not to be considered as projected results. Although Saint-Gobain believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of its future performance. Actual results may differ materially from the forward-looking statements as a result of a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond the control of Saint-Gobain, including but not limited to the risks described in Chapter 7, Section 1 of Saint-Gobain’s Registration Document. Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Saint-Gobain disclaims any intention or obligation to complete, update or revise these forwardlooking statements, whether as a result of new information, future events or otherwise.

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