SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

9

Financial and accounting information 2017 Consolidated financial statements

Impact on income of financial 8.4.7.

The average internal rate of return for the main component of long-term debt before hedging (bonds) was 3.2% in 2017, compared with 3.9% in 2016. The table below presents the breakdown by interest rate (fixed or variable) of the Group’s gross debt at December 31, 2017, taking into account interest rate, currency and cross-currency swaps: (inɸ€ millions) Gross debt after hedging Variable rate Fixed rate Total EUR 1,219 7,264 8,483 Other currencies 153 438 591 TOTAL 1,372 7,702 9,074 (in %) 15% 85% 100% Accrued interest and other financial liabilities 165 TOTAL GROSS DEBT 9,239

instruments not qualifying for hedge accounting

The fair value of derivatives classified as financial assets and liabilities at fair value through profit or loss represented a gain of €2 million in 2017 compared to a loss of €5 million in 2016. Changes in the fair value of the initial hedge are offset in the income statement against the unwinding of the hedge taken out in connection with the acquisition of a controlling interest in Sika. Embedded derivatives 8.4.8. The Saint-Gobain Group regularly analyzes its contracts in order to separately identify financial instruments classified as embedded derivatives under IFRS. At December 31, 2017, no embedded derivatives deemed to be material at Group level were identified. Group debt structure 8.4.9. The weighted average interest rate on total gross debt under IFRS and after hedging (interest rate swaps, currency swaps and cross-currency swaps) was 2.8% at December 31, 2017, compared with 3.4% at December 31, 2016.

Financial assets and liabilities 8.5. Financial assets and liabilities are classified as follows in accordance with IFRS 7: At December 31, 2017:

Financial instruments at fair value according to the IFRSb7 hierarchy

Financial instruments at fair value

b

b

Other financial instruments

b

b

(inɸ€ millions)

Assets and liabilities measured at fair value (fair value option)

Total financial instru- ments measured

Financial instru- ments through profit or loss

Total financial instruments measured

Liabilities at amortized cost

Loans and recei- vables

Balance sheet headings and

Available- for-sale financial assets

Total financial instru- ments

Qualifying derivatives

at fair value

at fair value

classes of instrument

Level 1 inputs

Level 2 inputs

Level 3 inputs

Notes

Trade and other accounts receivable Loans, deposits and surety Available-for-sale and other securities

(3)

0

6,425

6,425

0

(6)

0

512

512

0

(6)

0

101

101

0

Derivatives recorded in assets

83

24

107

107

107

107

Cash and cash equivalents TOTAL ASSETS

3,284 3,284

3,284 3,391

3,284 1,626 1,658

3,284 3,391

83

24

101 6,937

0 10,429 1,626 1,765

0

Trade and other accounts payable (3)

0

(9,818) (9,818)

0

Long- and short-term debt

0

(9,169) (9,169)

0

Derivatives recorded in liabilities TOTAL LIABILITIES

(11)

(94)

(105)

0

(105)

(105)

(105)

(11)

(94) (70)

0

(105) 3,286

0

0 (18,987) (19,092)

0 (105)

0 0

(105) 3,286

TOTAL

72

3,284

101 6,937 (18,987) (8,663) 1,626 1,660

262 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017