Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Provisions for claims and litigation 7.1.1 At December 31, 2016 and 2015, provisions for claims and against the Group. These provisions are described in further litigation mainly covered asbestos-related lawsuits filed detail in Note 7.2 “Contingent liabilities and litigation”. clean-up costs. protection measures, as well as site rehabilitation and These provisions cover costs relating to environmental Provisions for restructuring costs 7.1.3 Provisions for restructuring costs amounted to €99 million at including net additions of €32 million during the year. The December 31, 2016 (€139 million at December 31, 2015), (€21 million), the United Kingdom (€12 million), and France provisions primarily concern Benelux (€33 million), Germany (€10 million). Provisions for personnel expenses 7.1.4 employees that are unrelated to the Group’s reorganization These provisions primarily cover indemnities due to plans. They are determined on a statistical basis using a range of warranties granted to customers mainly in the United States. made in prior years in the business and region concerned. In criteria and take into account contractual warranty payments risks. addition, specific provisions may be set aside for identified These provisions cover the Group’s commitments under Provisions for other contingencies 7.1.6 amounted to €281 million (€307 million at December 31, 2015) At December 31, 2016, provisions for other contingencies States (€60 million), France (€40 million) and Brazil and mainly concerned Germany (€98 million), the United (€41 million). Investment-related liabilities 7.1.7 purchase minority interests, liabilities relating to the Investment-related liabilities correspond to commitments to shareholder puts. acquisition of shares in Group companies, and minority In 2016, changes in investment-related liabilities primarily concerned minority shareholder puts. Contingent liabilities and litigation 7.2 Asbestos-related litigation 7.2.1 described below. The situation regarding ongoing asbestos-related litigation is Asbestos-related litigation in France 7.2.1.1 Inexcusable fault lawsuits a) In France, further individual lawsuits were filed in 2016 by former employees (or persons claiming through them) of Provisions for environmental risks 7.1.2 Provisions for customer warranties 7.1.5

out asbestos-related Everite and Saint-Gobain PAM which in the past had carried 2016, a total of 805 such lawsuits had been issued against the occupational diseases they have or had. As at December 31, 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. 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”. settlement of these lawsuits totaled approximately Compensation paid by Everite and Saint-Gobain PAM in €1.7 million. Concerning the 44 lawsuits outstanding against Everite and have been decided but the compensation awards have not Saint-Gobain PAM at December 31, 2016, the merits of three fiber-cement operations for of these 44 lawsuits have been completed in terms of both yet been made, pending Appeal Court rulings. A further four liability and quantum, but liability for the payment of compensation has not yet been assigned. Out of the 37 remaining lawsuits, at December 31, 2016 the stages, with four in the process of being investigated by the procedures relating to the merits of 33 cases were at different Social Security courts. The last four actions have been French Social Security authorities and 29 pending before the any time within a two-year period. canceled but the plaintiffs may request their restoration at filed since the outset of the litigation by current or former In addition, as of December 31, 2016, 221 similar suits had been employees of thirteen other French companies of the Group the Group), in particular by current or former employees who (excluding suits against companies that are no longer part of against heat from furnaces. used equipment containing asbestos to protect themselves 89 of these cases, the employer was held liable for As of December 31, 2016, 164 lawsuits had been completed. In “inexcusable fault”. totaled approximately €2.5 million. The compensation definitively paid by these companies two cases were still at the investigation stage by the French With regard to the 57 suits outstanding at December 31, 2016, including 25 pending before the Social Security courts and 16 Social Security authorities, 41 were being investigated - completed in terms of liability but are still pending with regard before the Appeal Courts. In addition, seven suits had been which one was pending before the French Social Security to the quantum or liability for paying the compensation, of suits have been canceled but the plaintiffs may request their court and five before the Appeal Courts. The seven remaining Anxiety claims b) operate or have operated facilities classified as containing Eight of the Group’s French companies, including six that from those described above. asbestos, are subject of damages claims that are different restoration at any time within a two-year period.

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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