Saint-Gobain // Universal Registration Document 2021

6

Risks and control Risk factors

1.2

Group structural risks

1.2.1

Risks related to the Group’s

more than expected, or the cost savings may be less than expected or take longer than expected to achieve. An increase in restructuring costs and/or the Group’s inability to achieve the expected savings could have a material adverse effect on the Group’s results and outlook.

pension and similar commitments* The Group recognizes significant pension and similar obligations mainly in Western Europe (in particular in France, Germany and the United Kingdom) and in North America (United States and Canada), which for the most part are no longer open to new employees. At December 31, 2021, the total amount of pension plan commitments was to €12.4 billion (see Note 6.3 to the consolidated financial statements, Chapter 8, Section 1). The provision for pension plans recognized in the consolidated balance sheet (€2 billion at December 31, 2021) may be affected by adverse changes in the actuarial assumptions used to calculate the projected benefit obligation, by a reduction in the discount rates used to measure future commitments, a change in life expectancy or higher inflation, or a fall in the market values of plan assets, consisting mainly of equities and bonds. Risks related to cost reduction and 1.2.2 restructuring The Group has undertaken a variety of cost-cutting and restructuring initiatives. While further savings are planned, there is no guarantee that the forecast reductions will be achieved or that the related restructuring costs will not be higher than originally budgeted. In particular, certain restructuring operations and other initiatives may cost

Risks related to goodwill and 1.2.3

impairment of property, plant and equipment and intangible assets

Brands and goodwill make up a significant proportion of the Group’s intangible assets, representing (€1.7 billion and €11.2 billion, respectively, at December 31, 2021). In line with Group accounting policies, goodwill and certain other intangible assets with indefinite use lives are tested for impairment periodically and whenever there is an indication that their carrying amount may not be fully recoverable. Goodwill and other identified intangible assets may become impaired as a result of worse-than-expected Group performance, unfavorable market conditions, unfavorable legal or regulatory changes or many other factors. The recognition of impairment losses on goodwill could have an adverse effect on consolidated net income. Property, plant and equipment (€11.7 billion at December 31, 2021) represent roughly one-quarter of total assets and may become impaired in the event of adverse changes in the business (see Chapter 8, Section 1, note 7 to the consolidated financial statements).

1.3

Financial risks

The Group is exposed to financial risks, and notably a information on this liquidity risk and the other financial liquidity risk on financing. In particular, in a crisis risks to which the Group is exposed, please see note 10.1 to environment, the Group might be unable to raise the the consolidated financial statements for the fiscal year financing or refinancing needed to cover its investment ended December 31, 2021, presented in Chapter 8 of this plans on the credit or capital markets, or to obtain such Universal Registration Document. financing or refinancing on acceptable terms. For more

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 232

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