Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION

3. Compagnie de Saint-Gobain annual financial statements (parent company)

Long-term debt can be analyzed as follows by currency:

2016

2015

(in EUR thousand)

Euro

7,110,306

7,246,724

Pound sterling

648,034

1,165,723

Norwegian krone

85,075

80,491

Yen

40,879

38,486

TOTAL

7,884,294

8,531,424

Main changes in bond debt in 2016 13.2 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 a €500 million private placement at maturity. The bond had paid a variable coupon consisting of 3-month Euribor +0.27%. On September 27, 2016, Compagnie de Saint-Gobain took advantage of good conditions in the debt market to lower its average borrowing costs, issuing €1 billion worth of 0% bonds maturing on March 27, 2020. a £300 million 5.625% bond at maturity. On December 15, 2016, Compagnie de Saint-Gobain redeemed Financing programs 13.3 The Group has a number of medium- and long-term financing programs (Medium-Term Notes) and short-term financing programs (Commercial Paper). At December 31, 2016, issuance under these programs was as follows:

Note that the amortization of expenses in respect of borrowing placements is prorated over the life of the borrowings in question. This is shown on the “Deferred charges” line on the balance sheet (see Note 9, deferred charges). Perpetual bonds 13.1 In 1985, Compagnie de Saint-Gobain issued 25,000 perpetual bonds each with a face value of Ecu 5,000, now €5,000. As at December 31, 2016, 18,496 perpetual bonds had been bought back and cancelled, and 6,504 perpetual bonds were outstanding, representing a total face value of €33 million. The bonds bear interests at a variable rate (average of interbank rates offered by five reference banks for euro six-month deposits). The amount paid per security in 2016 was €11.11. The bonds are not redeemable and interest on them is classified as a component of finance costs.

Authorized program at 12/31/2016

Outstanding issues at 12/31/2016

Outstanding issues at 12/31/2015

Maturities

(in EUR million)

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

an initial €1.5 billion syndicated line of credit expiring in ‹ December 2017 which was obtained in December 2012. This 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, which was obtained in December 2013. Following the exercise of the two rollover options, in December 2014 and in December 2015, this syndicated line of credit was extended by two additional years, bringing its maturity to December 2020.

In accordance with market practices, Negotiable European Commercial paper (NEU CP), US Commercial Paper and Euro-Commercial Paper are generally issued with maturities of one to six months. They are treated as variable-rate debt because they are rolled over at frequent intervals. Syndicated lines of credit Compagnie de Saint-Gobain has various syndicated lines of credit that are intended to provide a secure source of financing for the Group (including as additional backing for its short term financing programs Negotiable European Commercial paper, NEU CP, US Commercial Paper and Euro-Commercial Paper). They include:

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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