Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Saint-Gobain shares held or controlled by Compagnie de Saint-Gobain and Saint-Gobain Corporation are shown as a deduction from equity under “Treasury stock” at acquisition cost. The liquidity agreement signed with Exane BNP Paribas on November 16, 2007 and implemented on December 3, 2007 for a period up to December 31, 2007 has been automatically renewed since that date. (2,335,918 shares at December 31, 2015). In 2016, the Group acquired 12,246,156 shares (15,050,261 shares in 2015) directly on the market and sold 1,706,031 shares (1,223,943 shares in At December 31, 2016, 1,891,955 shares were held in treasury 2015). Lastly, 10,984,088 shares were canceled in 2016 (13,000,000 shares in 2015). For the purposes of a compensation plan set up in January 2008 for certain employees in the United States,

Compagnie de Saint-Gobain shares are held by a trust administered by Wachovia Bank, National Association. In the consolidated financial statements, these shares are treated as being controlled by Saint-Gobain Corporation.

Earnings per share 9.2.

Group outstanding during the period. Basic earnings per share are calculated by dividing net income by the weighted average number of shares of the Diluted earnings per share are calculated by adjusting earnings per share and the average number of shares outstanding for the effects of all potential dilutive common shares, such as stock options and performance shares.

Basic and diluted earnings per share are as follows:

2016

2015

Basic

Diluted

Basic

Diluted

Income (in € millions) Group share of net income from continuing operations

1,311

1,311

374

374

Group share of net income from discontinued operations

0

0

921

921

GROUP SHARE OF NET INCOME

1,311

1,311

1,295

1,295

Number of shares Weighted average number of shares in issue

554,624,285

562,001,188

Weighted average number of shares assuming full dilution

557,163,247

564,780,983

Earnings per share (in €) Earnings per share from continuing operations, Group share

2.36

2.35

0.66

0.66

Earnings per share from discontinued operations, Group share

0.00

0.00

1.64

1.63

EARNINGS PER SHARE, GROUP SHARE

2.36

2.35

2.30

2.29

instruments. The Group’s dilutive instruments include stock The weighted average number of shares assuming full dilution is calculated based on the weighted average number of shares outstanding, assuming conversion of all dilutive

options and performance share grants corresponding to a weighted average of 694,913 and 1,844,049 shares, respectively, at December 31, 2016.

NOTE 10

TAXES

Income taxes 10.1.

The pre-tax income of consolidated companies is as follows:

adjustments to current taxes recorded in previous financial periods. respect of income for a given period, calculated by reference to the tax rates that have been enacted or substantively enacted at the end of the reporting period, plus any Current income tax is the estimated amount of tax payable in

2016

2015

(in € millions)

Net income

1,352

1,346

Less: Share in net income of equity-accounted companies

36

43

Net income from discontinued operations

0

929

Income taxes

(416)

(248)

COMPANIES PRE-TAX INCOME OF CONSOLIDATED

1,732

622

250

SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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