Saint-Gobain // Universal Registration Document 2021

Financial and accounting information 2021 Consolidated Financial Statements

Estimates and assumptions 1.2 The preparation of consolidated financial statements in compliance with IFRS requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported in the balance sheet and the disclosure of contingent assets and liabilities in the notes to the financial statements, as well as the reported amounts of income and expenses during the period. These estimates and assumptions are based on past experience and on various other factors in the prevailing economic and financial environment which makes it difficult to predict future business performance. Actual amounts may differ from those obtained through the use of these estimates and assumptions. The main estimates and assumptions described in these notes concern the measurement of employee benefit obligations and share-based payment (note 6 “Employees, personnel expenses and employee benefit obligations”), asset impairment tests (notably the assumptions used in the tests relating to the Group’s commitments to reduce After being severely affected by the Covid-19 pandemic in the first half of 2020, trading in the second half of 2020 was almost back to normal levels for most of the Group’s businesses. In a macroeconomic and health environment which remains affected by uncertainties, the Group delivered a solid operating performance throughout 2021 and enjoyed good momentum in its main markets, especially renovation in Europe and construction in the Americas and in Asia-Pacific. These trends may change in the coming months depending on how the coronavirus pandemic evolves in terms of duration and magnitude, vaccination progress and available medical treatment, and the resulting consequences for the Group’s partners (customers, suppliers, etc.).

its net carbon emissions) and the determination of lease terms (note 7 “Intangible assets, property, plant and equipment, and right-of-use assets”), provisions for other liabilities and charges (note 9 “Other current and non-current liabilities and provisions, contingent liabilities and litigation”), the measurement of financial instruments (note 10 “Financing and financial instruments”), and taxes (note 12 “Tax”). Due to the mainly local nature of the Group’s operations, Brexit did not have a direct material impact on the financial statements. However, it does give rise to a degree of macroeconomic uncertainty that could affect business in the United Kingdom and, therefore, Group entities operating in the country. In the context of the ongoing coronavirus pandemic, the estimates and assumptions used in 2021 take into account uncertainties as to the development of the health situation going forward. However, these are expected to have a limited impact on the Group’s businesses.

Impacts of the Covid-19 pandemic NOTE 2

Impact on current operating items As in 2020, the costs of the measures taken in response to the Covid-19 crisis were included in full within operating income. However, these costs were not material in 2021. Operating income includes, as in 2020, business travel cost savings resulting from the reduction in, or cancellation of, business trips in most countries where the Group does business. Impairment review in light of the Covid-19 pandemic No impairment was recognized in connection with the Covid-19 pandemic in 2021 (see note 7.5.2).

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