Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Change in pension and other 4.3.3

The rate assumptions used in 2015 for the Group’s main plans were as follows:

post-employment benefit obligations

Net book value of provisions 4.3.3.1 Provisions for pensions and other employee benefit obligations consist of the following:

Eurozone Kingdom United

States United

France

(in %)

Discount rate

2.40%

2.40% 3.80% 4.25%

Salary increases

2.50% 1.50% to 2.60% 2.00%*

3.00%

Dec. 31, 2016 Dec. 31, 2015

(in € millions)

Inflation rate

1.70% 1.50% to 1.90%

2.05% 2.50%

Pension commitments

2,673

2,919

A cap applies to the reference salaries used to calculate benefit entitlements. *

Length-of-service awards

355

333

Post-employment healthcare benefits

435

451

Sensitivity of assumptions 4.3.2.2

AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS TOTAL PROVISIONS FOR PENSIONS

to an overall increase in defined benefit obligations of around €670 million. €240 million for the Eurozone plans and €510 million for the UK plans. A 0.5-point increase in the inflation rate would lead lead to an increase (decrease) in defined benefit obligations of around €250 million for the United States plans, A 0.5-point decrease (increase) in the discount rate would turnover and interest rates are used to determine the Group’s defined benefit obligations for other long-term employee The same assumptions concerning mortality, employee benefits. In the United States, retirees’ healthcare costs are projected to rise by 7.36% or 7.85% per year, depending on projected benefit obligation). the age of the beneficiary (a 1-point increase in this rate would lead to an increase of around €55 million in the related

3,463

3,703

Healthcare benefits

27

28

Long-term disability benefits

20

19

Other long-term benefits

105

99

OTHER EMPLOYEE BENEFITS PROVISIONS FOR PENSIONS AND

3,615

3,849

at December 31, 2016 (€146 million at December 31, 2015). Provisions for all other long-term benefits totaled €152 million assets: The following table shows obligations under pension and other post-employment benefit plans and the related plan

Dec. 31, 2016 Dec. 31, 2015

(in € millions)

post-employment benefit obligations - liabilities Provisions for pensions and other

3,463

3,703

Pension plan surpluses - assets

(41)

(63)

NET PENSION AND OTHER POST-EMPLOYMENT BENEFIT

3,422

3,640

OBLIGATIONS

Analysis of obligations 4.3.3.2 At December 31, 2016, pension obligations and provisions for other post-employment benefit obligations break down by major geographic region as follows:

Dec. 31, 2016 (in € millions)

France

Eurozone United Kingdom United States Rest of the World Net total

Average duration (in years)

16

16

19

13

15

16

Defined benefit obligations - funded plans

563

1,781

5,278

2,975

937

11,534

Defined benefit obligations - unfunded plans

402

126

402

200

1,130

Fair value of plan assets

(256)

(829)

(4,814)

(2,519)

(828)

(9,246)

DEFICIT/(SURPLUS)

709

1,078

464

858

309

3,418

Asset ceiling

4

4

POST-EMPLOYMENT BENEFIT OBLIGATIONS NET PENSION AND OTHER

709

1,078

464

858

313

3,422

224

SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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