SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

Strategic drivers for sustainable growth Allocating resources efficiently to drive Group performance

Controlling capital investments in 1.1.2 developed countries by focusing resources on productivity gains Saint-Gobain’s objective is to reduce the Group’s capital intensity, particularly in the sectors where capital investments are significant. In developed countries, the Group gave priority to productivity investments in Industry 4.0, automation, IT, and logistics. For example, Flat Glass is developing an enhanced Industry 4.0 program for its sites, to which it is devoting a large part of its investment. Saint-Gobain Building Distribution invested in particular in logistics with, for example, a new logistics base in Norway.

Flat Glass is making significant investments in a new „ Sekurit plant in Saltillo (Mexico) and in a new coater in Cuautla (Mexico); within High Performance Materials, Saint-Gobain Ceramic „ Materials set out a new grains and powders plant in Paraguay, while Saint-Gobain Abrasives is investing in a new maker in India and Brazil and Saint-Gobain Adfors increases its production capacities in Czech Republic. The new building market in the United States has remaines dynamic and the Group continued to invest there in 2017. For example, CertainTeed is making significant investments in a limestone crushing unit in Jonesburg, Missouri (USA) and in a new generation siding line in Jackson, Michigan (USA). Saint-Gobain is also developing in niche markets and adjacent high value-added markets, which offer significant potential in the US. To this end, in 2017, Saint-Gobain is heavily investing in its Performance Plastics plant sites in Portage, Wisconsin (USA) and San Diego, California, (USA). In the coming years, the Group intends to pursue its strategy of significant investing in high-growth countries and thereby achieve the critical mass that will afford it real competitive advantage.

3

DISTRIBUTION OF INDUSTRIAL ASSETS BY REGION AT DECEMBER 31, 2017

13% NORTH AMERICA

24% FRANCE

28% OTHER WESTERN EUROPEAN COUNTRIES

35% ASIA AND FAST-GROWING COUNTRIES

Industrial investments (excluding finance lease) (in EUR million)

2017

2016

Innovative Materials

660 468 192 582 374 208 251

573 375 198 515 337 178 245

Flat Glass

High-Performance Materials

Construction Products

Interior Solutions Exterior Solutions

Building Distribution

Other

45

37

TOTAL OF THE GROUP

1,538

1,370

51 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017