Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Actuarial gains and losses 4.3.3.4 arising on pension obligations owing to changes in actuarial The €366 million actuarial gain breaks down as €1,474 million relating to a decrease in the asset ceiling. corresponding to the increase in plan assets and €2 million assumptions and experience adjustments, €1,106 million Plan assets 4.3.3.5 primarily in the United States, the United Kingdom and Plan assets have been progressively built up by contributions, the United States in September 2016. one-off contribution of USD 640 million (€578 million) paid in 2016 totaled €732 million (€116 million in 2015), including a Germany. Contributions paid by the Group into these plans in calculated using the discount rate. United Kingdom) than the estimated return of €278 million €1,106 million higher (including €1,016 million arising in the decrease of €94 million in 2015. This actual return is increase of €1,384 million in plan assets, compared with a Actual returns on equity and bond markets generated an equity. assets would have an impact of approximately €46 million on A 0.5-point increase or decrease in the actual return on plan (55%), with the remaining 18% invested in other asset classes. Plan assets are mainly composed of equities (27%) and bonds Projected contributions to pension plans for 2017 are estimated at around €130 million. Employee benefit expense 4.3.3.6 benefit plans (excluding other employee benefits) is as The cost of the Group’s pension and other post-employment follows:

Defined contribution plans 4.3.4

incurred. Contributions to defined contribution plans are expensed as represented an estimated €628 million (€600 million in 2015), Contributions to defined contribution plans for 2016 plans mainly in France (€129 million in 2015), and €79 million for government-sponsored supplementary pension schemes, pension schemes (€399 million in 2015), €131 million for including €418 million for government-sponsored basic (€72 million in 2015). corporate-sponsored supplementary pension

Share-based payments 4.4 Group Savings Plan 4.4.1

setting the subscription price to the Chief Executive Officer of events. The Board of Directors delegates authorization for ten-year lock-up, except following the occurrence of certain on local legislation, and are subject to a mandatory five- or through the employee saving plan’s mutual funds, depending subscription price. These shares are held either directly or able to invest in Saint-Gobain shares at a preferential of three months’ service in the Group. Eligible employees are present. Eligible employees must have completed a minimum in France and most other countries where the Group is decision, subject to a 20% discount, in accordance with Paris over the 20 trading days preceding the date of the the opening prices for the Saint-Gobain share on Euronext Compagnie de Saint-Gobain. It corresponds to the average of deliberations of the Board of Directors. applicable laws, the Shareholders’ Meeting resolutions and the of the lock-up for the employee is defined as the cost of a on restricted stock (i.e., stock subject to a lock-up). The cost measured by reference to the fair value of a discount offered The compensation cost recorded in accordance with IFRS 2 is employee stock purchase plan open to all Group employees The Group Savings Plan (Plan Épargne Groupe) is an rate that would be charged by a bank to an individual with an purchase with debt. The borrowing cost is estimated at the number of shares on the spot market and financing the stock forward five or ten years and then purchasing the same two-step strategy that involves first selling the restricted recognized in full at the end of the subscription period. consumer loan repayable at maturity. The cost of the plans is average risk profile for a general-purpose, five- or ten-year issued to employees under the PEG at an average In 2016, 4,653,810 new shares with a par value of €4 were transaction fees. capital increase of €136 million (€144 million in 2015), net of subscription price of €32.44 in 2015), representing a share subscription price of €29.42 (4,449,939 shares at an average 2016 and 2015, net of the lock-up cost of €26 million The cost recorded in the income statement amounted to nil in (€24 million in 2015).

2016

2015

(in € millions)

Service cost

189

211

Interest cost

382

390

Return on plan assets

(278)

(296)

and settlements Past service cost, plan curtailments administration costs Employee contributions and plan

(14)

(44)

(1)

(1)

PENSIONS, LENGTH-OF-SERVICE AWARDS AND OTHER POST-EMPLOYMENT BENEFITS

278

260

226

SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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