SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

9

Financial and accounting information 2017 Consolidated financial statements

The following table shows the main features of the standard plans, the amounts invested in the plans and the valuation assumptions applied in 2017 and 2016: b 2017 2016 Plan characteristics

Juneɸ4, 2015 (17 th resolution)

Juneɸ4, 2015 (17 th resolution)

Date of shareholders' Meeting

Date of the Chief Executive Officer's decision fixing the subscription price

Marchɸ20

Marchɸ21

Plan duration (in years) Reference price (in €) Subscription price (in €)

5 or 10

5 or 10

45.89 36.72

36.77 29.42

Discount (in %)

20.00% 21.25%

20.00% 21.94%

Total discount on the date of the Chief Executive Officer's decision (in %) (a)

Employee investments (inɸ€ millions) Total number of shares subscribed Valuation assumptions (5-year maturity) Interest rate applicable to employees*

168.7

136.9

4,593,807

4,653,810

4.80% 0.19% 0.47%

5.00% -0.15% 0.50% 22.92% -0.98%

Risk-free interest rate

Repo rate

Lock-up discount (in %) (b)

21.17%

Total cost to the Group (in %) (a-b)

0.08%

A 0.5-point decline in borrowing costs for the employee would have no material impact on the 2017 share-based payment expense as calculated in accordance with IFRSɸ2. *

4.4.2. Stock option plans Compagnie de Saint-Gobain has stock option plans available to certain employees. The Board of Directors grants options allowing beneficiaries to obtain Saint-Gobain shares at a price set, at no discount, by reference to the average of the opening prices for the Saint-Gobain share over the 20 stock market trading days preceding the date of the decision by the Board of Directors. For all of the plans, options may only be exercised after four years of the grant date. During this period, none of the options received may be exercised. Options must be exercised within 10 years of the grant date. Except in specified circumstances, grantees forfeit these options if they leave the Group. Among the plans outstanding at December 31, 2017, plans launched between 2008 and 2012 offer subscription options, while the 2013 plan offers purchase options. For plans launched between 2014 and 2017, the Board of Directors has decided that it would determine the type of option (subscription or purchase) at the latest on the day before the start of the exercise period, with any options exercised prior to such decision considered as subscription options. Until 2008, options were subject to a performance condition for certain grantees only. A performance condition applies for all grantees in plans awarded since 2009. For options granted under the 2017 plan, the value used to calculate the 30% contribution sociale tax due by grantees employed by French companies in the Group is €5.06 per option granted.

The following table presents changes in the number of outstanding options: €4 par value shares Average exercise price (in €)

OPTIONS OUTSTANDING AT DECEMBERb31, 2015

11,601,857 280,000 (450,082) (4,509,448) 6,922,327 284,500 (689,997) (3,501,207)

48.69 40.43 27.50 51.40 47.97 49.38 28.39 63.99

Options granted Options exercised Options forfeited

OPTIONS OUTSTANDING AT DECEMBERb31, 2016

Options granted Options exercised Options forfeited*

OPTIONS OUTSTANDING AT DECEMBERb31, 2017

3,015,623 33.97 Including 3,403,160 subscription options granted under the 2007 plan that had not been * exercised when the plan expired, and 98,047ɸpurchase options granted under the 2013 plan that had lapsed because the performance condition had only been partly met. The cost of stock option plans is calculated using the Black & Scholes option pricing model. The following inputs were used: volatility assumptions that take into account the historical „ volatility of the share price over a rolling 10-year period, as well as implied volatility from traded share options. Periods of extreme share price volatility are disregarded;

240 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017