Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Bonds 8.3.3 On May 31, 2016, Compagnie de Saint-Gobain redeemed a €700 million 4,875% bond at maturity. On September 14, 2016, Compagnie de Saint-Gobain redeemed paid a variable coupon consisting of 3-month Euribor +0.27%. a €500 million private placement at maturity. The bond had On September 27, 2016, Compagnie de Saint-Gobain took average borrowing costs, issuing €1 billion worth of 0% bonds advantage of good conditions in the debt market to lower its maturing on March 27, 2020. On December 15, 2016, Compagnie de Saint-Gobain redeemed a GBP 300 million 5,625% bond at maturity. bonds with a face value of ECU 5,000 (€5,000 today). In 1985, Compagnie de Saint-Gobain issued 25,000 perpetual bought back and canceled, and 6,504 perpetual bonds were outstanding, representing a total face value of €33 million. Up to December 31, 2016, 18,496 perpetual bonds had been The bonds bear interest at a variable rate (average of interbank rates offered by the five reference banks for six-month euro deposits). The amount paid out per bond in 2016 was €11.11. The bonds are not redeemable and interest on the bonds is classified as a component of finance costs. Perpetual bonds 8.3.4

Participating securities 8.3.5

translation into euros in 1999. non-voting participating securities with a face value of FRF 1,000. Their face value is now €152.45, following their In June 1983, Compagnie de Saint-Gobain issued 1,288,299 A certain number of participating securities have been face value of €92.5 million. bought back over the years. At December 31, 2016, 606,883 securities were still outstanding with an aggregate Interest on the securities ranges from 75% to 125% of the average corporate bond yield (TMO), based on the Group’s consolidated income. The amount paid out per security in 2016 was €2.05. In April 1984, 194,633 non-voting participating securities were issued with a face value of ECU 1,000 (€1,000 today). A certain number of securities have been bought back over the years. At December 31, 2016, 77,516 securities were still outstanding with an aggregate face value of €77.5 million. Interest comprises (i) a fixed portion of 7.5% paid per year per security in 2016 was €63.38, paid in two installments (€30.83 and €32.55). to consolidated net income of the previous year and to the reference six-month Libor EUR rate +7/8%. The amount paid (ii) a variable portion applicable to the remaining 40% of the nominal amount of the participating security, which is linked These participating securities are not redeemable and the interest paid on them is reported under borrowing costs. Financing programs 8.3.6 The Group has a number of medium- and long-term financing programs (Medium-Term Notes) and short-term financing programs (Commercial Paper). applicable to 60% of the nominal amount of the security, and

At December 31, 2016, issuance under these programs was as follows:

drawings Authorized

Authorized limits at Dec. 31, 2016

Balance outstanding at Dec. 31, 2016

Balance outstanding at Dec. 31, 2015

(in € millions)

Medium Term Notes

15,000

7,777

7,719

NEU CP

up to 12 months

3,000

0

0

US Commercial Paper

up to 12 months

949*

0

0

Euro Commercial Paper

up to 12 months

949*

0

0

Equivalent of USD 1,000 million based on the exchange rate at December 31, 2016. *

they are rolled over at frequent intervals. Commercial Paper (NEU CP), US Commercial Paper and Euro Commercial Paper are generally issued with maturities of one In accordance with market practices, Negotiable European to six months. They are treated as variable-rate debt since

facility was renegotiated in December 2013 and rolled over until December 2018; a second €2.5 billion syndicated line of credit expiring in ‹ December 2018 with two one-year rollover options that was contracted in December 2013. Following exercise of the two extension options in December 2014 and covenants. Based on the Group’s current credit rating for long-term debt issues, the two facilities are not subject to any hard Neither of these two lines of credit had been drawn down at December 31, 2016. December 2015, this syndicated facility was extended for a further two years, and now falls due in December 2020.

8.3.7 Syndicated lines of credit

9

programs): financing for the Group (including as additional backing for its NEU CP, US Commercial Paper and Euro Commercial Paper Compagnie de Saint-Gobain has various syndicated lines of credit that are intended to provide a secure source of an initial €1.5 billion syndicated line of credit expiring in ‹ December 2017 that was obtained in December 2012. This

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016