Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

options, based on observed behavior of option holders; assumptions relating to the average holding period of ‹ dividend information dating back to 1988; expected dividends, as estimated on the basis of historical ‹ long-term government bonds; a risk-free interest rate corresponding to the yield on ‹ the effect of any stock market performance conditions, ‹ IFRS 2 share-based payment expense. which is taken into account in the initial measurement of

is four years. income statement over the vesting period of the options, which The cost calculated using this method is recognized in the of options granted in 2016 amounted to €1 million. amounted to €1 million in both 2016 and 2015. The fair value Stock option expense recorded in the income statement

fulfillment of the performance criteria attached to certain plans: The table below summarizes information about stock options outstanding at December 31, 2016, after taking into account partial

Exercisable options

Non-exercisable options

Total options outstanding

(in months) contractual life Weighted average

(in €) Exercise price

of options Number

(in €) Exercise price

of options Number

of options Number

Type of options

Grant date

2007

64.72

3,403,171

11

3,403,171

Subscription

2008

25.88

1,702,822

23

1,702,822

Subscription

2009

36.34

809,868

35

809,868

Subscription

2010

35.19

0

47

0

Subscription

2011

31.22

0

59

0

Subscription

2012

27.71

29,716

71

29,716

Subscription

or purchase* Subscription or purchase* Subscription or purchase* Subscription or purchase* Subscription

2013

83

38.80

237,250

237,250

2014

95

34.13

234,550

234,550

2015

107

39.47

224,950

224,950

2016

119

40.43

280,000

280,000

TOTAL

5,945,577

976,750

6,922,327

2013, 2014, 2015 and 2016 plans: see above. *

when options are exercised is recorded in “Capital stock” for For subscription options, the sum received by the Company recorded under “Additional paid-in capital”. balance - net of directly attributable transaction costs - the portion representing the par value of the shares, with the had not yet vested. 976,750 options (with an average exercise price of €38.30) exercisable (at an average exercise price of €49.55) and At December 31, 2016, 5,945,577 stock options were grants Performance shares and performance unit 4.4.3 The Group set up a worldwide share grant plan in 2009 (performance conditions), which are described below. The conditions) with the Group as well as performance criteria criteria based on the grantee’s period of service (service categories of employees. These plans are subject to eligibility performance share plans have also been set up for certain This plan ended in the first half of 2014. Since 2009, whereby each Group employee was awarded seven shares. after deducting the present value of forfeited dividends on these criteria as well as the lock-up feature. It is determined IFRS 2 share-based payment expense takes into account the country. period, which ranges from two to four years depending on the performance shares and are recognized over the vesting

transactions, the granted instruments are initially measured at stipulates that for cash-settled share-based payment fair value at the grant date, then remeasured at the end of rights. The expense is recognized over the vesting period of the pro rata to the rights that have vested at the reporting date. each reporting period, with the expense adjusted accordingly as well as the fact that the units are cash-settled. IFRS 2 payment expense therefore takes into account these factors, service and performance conditions. The IFRS 2 share-based certain employees in France. These plans are also subject to Since 2012, performance unit plans have been set up for Saint-Gobain since 2009. Various performance share plans have been set up by Four performance plans were outstanding at December 31, 2016. The plans approved by the Board of Directors in 2013, and senior managers of the Group within and outside France. November 24, 2016 concerns managerial-grade employees The plan approved by the Board of Directors on employees and senior managers of the Group outside France. 2014 and 2015 solely concern certain managerial-grade The vesting period for the plans is four years and the shares All plans are subject to service and performance conditions. will be delivered the day after the end of the vesting period. Performance share plans a)

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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