Saint Gobain - Registration document 2016

7 RISKS AND CONTROL 1. Risk factors

1.4

LEGAL RISKS

1.4.1

Risk of regulatory changes

actions have been canceled but the plaintiffs may request pending before the Social Security courts. The last four their restoration at any time within a two-year period. investigated by the French Social Security authorities and 29 different stages, with four in the process of being In addition, as of December 31, 2016, 221 similar suits had been employees of 13 other French companies of the Group filed since the outset of the litigation by current or former used equipment containing asbestos to protect themselves the Group), in particular by current or former employees who against heat from furnaces. (excluding suits against companies that are no longer part of “inexcusable fault”. 89 of these cases, the employer was held liable for As of December 31, 2016, 164 lawsuits had been completed. In totaled approximately €2.5 million. The compensation definitively paid by these companies With regard to the 57 suits outstanding at December 31, 2016, Social Security authorities, 41 were being investigated – two cases were still at the investigation stage by the French procedures relating to the merits of 33 cases were at Out of the 37 remaining lawsuits, at December 31, 2016 the Social Security court and five before the Appeal Courts. The compensation, of which one was pending before the French may request their restoration at any time within a two-year seven remaining suits have been canceled but the plaintiffs regard to the quantum or liability for paying the completed in terms of liability but are still pending with before the Appeal Courts. In addition, seven suits had been including 25 pending before the Social Security courts and 16 asbestos, are subject of damages claims that are different operate or have operated facilities classified as containing from those described above. Eight of the Group’s French companies, including six that operating, which previously manufactured materials industrials facilities, that have been closed or are still containing asbestos or used protection and insulation “Facilities classified as containing asbestos” are defined as ministerial decree on the official list of facilities whose current equipment containing asbestos and are included by benefits paid to asbestos workers (ACAATA). or former employees are entitled to the early-retirement by current or former employees claiming compensation for At December 31, 2016, a total of 822 suits had been brought to asbestos. None of these plaintiffs were suffering from an various damages suffered as a result of their alleged exposure receiving the ACAATA benefit. Of these 822 suits, 585 have asbestos-related disease and some of them were not been terminated. Three plaintiffs had their claims dismissed, (bureau de jugements des Conseils de prud’hommes), five are Appeal Courts, eight before the competent labor tribunals canceled but the plaintiffs may request their restoration at pending before the Court of Cassation and 110 have been remaining 237 suits, 97 are pending before the competent compensation is €7.6 million at December 31, 2016. Of the exposed to an asbestos risk, the total amount of while for the 582 others who were recognized as having been period. Anxiety claims

regulations applicable to classified sites. France, for example, Group plants are subject to the laws and regulations of the country where such sites are located. In required to comply with the specific national laws and materials and products it uses in its activities may change in a Laws and regulations applicable to the Group and to the Group companies that operate industrial sites are generally could have an impact on its financial position, although the The Group is not subject to any specific regulations that introduction of stricter regulations or more diligent manner that may be unfavorable to the Group. The under which the Group operates its businesses, which could enforcement of existing regulations may affect the conditions activities or act as a brake on business growth. More increase its operating expenses, limit the scope of its rapid or significant regulatory changes in the future with a generally, the Group cannot guarantee that there will be no results. material adverse effect on its business, financial position or a) Asbestos-related litigation Current legal actions related to asbestos are described below. Asbestos-related litigation in France Inexcusable fault lawsuits In France, further individual lawsuits were filed in 2016 by Everite and Saint-Gobain PAM which in the past had carried former employees (or persons claiming through them) of supplementary compensation over and above the amounts two companies since 1996 with the aim of obtaining paid by the French Social Security authorities in this respect. 2016, a total of 805 such lawsuits had been issued against the occupational diseases they have or had. As at December 31, As of December 31, 2016, 761 of these 805 lawsuits had been cases, the employers were held liable on the grounds of completed in terms of both liability and quantum. In all these “inexcusable fault”. Compensation paid by Everite and Saint-Gobain PAM in settlement of these lawsuits totaled approximately €1.7 million. Concerning the 44 lawsuits outstanding against Everite and out fiber-cement operations for asbestos-related have been decided but the compensation awards have not Saint-Gobain PAM at December 31, 2016, the merits of three of these 44 lawsuits have been completed in terms of both yet been made, pending Appeal Court rulings. A further four compensation has not yet been assigned. liability and quantum, but liability for the payment of administrative procedures Risks associated with legal and 1.4.2

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016