Saint Gobain - Registration document 2016

5 2016 RESULTS AND OUTLOOK FOR 2017 1. Financial Results

1.

Financial Results

The 2016 consolidated financial statements were approved and adopted by Saint-Gobain’s Board of Directors at its meeting of February 23, 2017. The consolidated financial statements were audited and certified by the Statutory Auditors.

2016 KEY FIGURES

SALES €39.1bn

OPERATING INCOME €2.818m operating margin: 7.2%. +50bp

ACTUAL

LIKE-FOR-LIKE

ACTUAL

LIKE-FOR-LIKE

+6.9%

+10.8%

-1.3%

+2.6%

FREE CASH FLOW €1,258m

NET DEBT €5,644m

RECURRING NET INCOME €1,398m EPS: €2.53€. +21.1% +20.0% ACTUAL

+29.0%

1.4 X EBITDA

CHANGES BASEDON 2016 VS. 2015

STRONG PROGRESS IN RESULTS Organic growth of 2.6% led by volumes; prices stable, with a progression of 0.6% in H2; ‹ Negative 2.9% currency impact on sales (with a negative 2.3% impact in H2); negative 1.0% Group structure impact; ‹ Further rise in operating income up 10.8% like-for-like, and operating margin up to 7.2% from 6.7%; ‹ Further strong 20.0% increase in recurring net income (1) ; ‹ 29.0% increase in free cash flow (2) to €1,258 million; ‹ Acceleration of acquisitions in H2, totaling €362 million over the full year; ‹ Increase in net debt to €5.6 billion, due namely to optimization of pension costs; buyback and cancelation of 11 million shares ‹ during the year; 2016 dividend increased to €1.26, to be paid wholly in cash. ‹

1.1

OPERATING PERFORMANCE

the depreciation of the pound sterling – and to a lesser extent a significant 2.9% negative currency impact due namely to Latin American currencies – against the euro. The Group reported 2016 sales of €39,093 million , including time-lag between the impact of disposals made to optimize The negative 1.0% Group structure impact reflects the

Prices stabilized over the year, gaining 0.6% in the second months to December 31, at the same pace as the first half. the second half), volumes continued to increase in the six constant number of working days (negative calendar effect in growth in all of our Business Sectors and regions. Based on a On a like-for-like basis, sales were up 2.6%, driven by volume

the acquisitions carried out mostly at the end of the period. the Building Distribution portfolio in late 2015/early 2016 and half amid an uptick in inflation.

material non-recurring provisions. Recurring net income: net attributable income from continuing operations excluding capital gains and losses on disposals, asset write-downs and (1) non-recurring provisions, less capital expenditure of continuing operations. Cash flow from continuing operations excluding the tax impact of capital gains and losses on disposals, asset write-downs and material (2)

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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