Saint-Gobain // Universal Registration Document 2021

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Financial and accounting information 2021 Consolidated Financial Statements

Changes in Group structure 4.2 Significant changes in the Group’s structure during 2021 and 2020 are presented below and a list of the main consolidated companies at December 31, 2021 is provided in note 15 “Principal consolidated companies”. Transactions carried out in 2021 4.2.1 In 2021, Saint-Gobain acquired 31 consolidated companies for a total purchase price of €985 million. The Group also sold 12 consolidated companies for a sale price of €187 million. 4.2.1.1 Main acquisitions in 2021 Acquisitions in 2021 represent full-year sales of around €816 million and €123 million in Ebitda. On February 19, 2021, in accordance with the ■ agreement to strengthen its partnership with El Volcan in Argentina and Peru, Saint-Gobain acquired El Volcan Soluciones Constructivas, which specializes in the production and sale of plasterboard in Peru. On March 15, 2021, Saint-Gobain announced that it had ■ acquired a majority stake in Brüggemann, one of Germany’s leading companies in the manufacture and installation of turnkey modular timber construction solutions for new construction and renovation in Germany. On July 15, 2021, Saint-Gobain completed the ■ acquisition of Russia’s Scientific and Production Company Adhesive LLC, a specialist company that controls the entire polyurethane and epoxy production cycle in order to develop, manufacture and supply a wide range of high-quality products for the construction, transportation and aerospace markets. On September 1, 2021, Saint-Gobain acquired ■ Netherlands-based Equflow BV, a leading designer and supplier of flowmeters for the single-use bioprocessing market. This acquisition expands the Group’s range of single-use fluid management solutions. On September 29, 2021, in line with its May 20, 2021 ■ announcement, Saint-Gobain announced that it had completed the acquisition of Chryso, a leading global player on the construction chemicals market thanks to its comprehensive additives solutions for sustainable construction. This acquisition, perfectly in line with Saint-Gobain’s strategy to position itself as a world leader in sustainable construction, allows the Group to strengthen its presence on the growing construction chemicals market, while benefiting from cost and sales synergies. With an enterprise value of €1,020 million, the acquisition was financed entirely out of proceeds from the Group’s disposals. The acquisition of Chryso represents pro forma full-year sales of €431 million and €87 million in Ebitda for 2021. The process of identifying and measuring the assets acquired and liabilities assumed at their fair value began in the second half of 2021 and will be completed in 2022. On September 30, 2021, Saint-Gobain completed the ■ acquisition of Romanian group Duraziv specializing in the production of adhesives and other value-added construction chemicals solutions. On September 30, 2021, in line with its May 11, 2021 ■ announcement, Saint-Gobain completed the acquisition of the French company Panofrance, a specialist distributor of timber and panels for the construction and furnishing industries.

Intragroup transactions 4.1.4 All intragroup transactions in the balance sheet and income statement are eliminated in consolidation. Translation of the financial statements of 4.1.5 foreign companies The consolidated financial statements are presented in euros, which is Compagnie de Saint-Gobain’s functional and presentation currency. Assets and liabilities of subsidiaries outside the Eurozone are translated into euros at the closing exchange rate, while income and expense items are translated using the average exchange rate for the period. The Group’s share of any translation gains or losses is included in equity under “Cumulative translation adjustments” until the assets or liabilities and all foreign operations to which they relate are sold, liquidated or deconsolidated. In this case, these translation differences are either taken to the income statement, if the transaction results in a loss of control, or recognized directly in the statement of changes in equity, if the change in minority interests does not result in a loss of control. Foreign currency transactions 4.1.6 Expenses and income from operations in currencies other than the Company’s functional currency are translated at the exchange rates prevailing at the transaction date. Assets and liabilities denominated in foreign currencies are translated at the closing rate and any exchange differences are recorded in the income statement. However, exchange differences relating to loans and borrowings between consolidated Group companies are recorded in equity, net of tax, under “Cumulative translation adjustments”, as they are in substance an integral part of the net investment in a foreign subsidiary. Hyperinflation 4.1.7 Under IAS 29, “Financial Reporting in Hyperinflationary Economies”, financial statements prepared based on historical cost must be restated. This involves applying a general price index that enables the financial statements to be presented in the measuring unit in force at the reporting date. All non-monetary assets and liabilities must therefore be adjusted for inflation in order to reflect changes in purchasing power at the reporting date. Similarly, the income statement is adjusted for inflation during the period. Monetary items do not need to be restated as they already reflect purchasing power at the reporting date. 4.1.7.1 Argentina Argentina has been classified as a hyperinflationary economy since July 1, 2018. IAS 29 therefore applies to entities using the Argentine peso as their functional currency (based on the table of indices issued by FACPCE). 4.1.7.2 Lebanon Lebanon has been classified as a hyperinflationary economy since October 2020. As from December 31, 2020, IAS 29 is therefore applicable to entities using the Lebanese pound as their functional currency. However, as the Group’s exposure to Lebanon is not material (sales in the country represent less than 1% of total Group sales), IAS 29 was not applied to the Group’s Lebanese companies in 2021.

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 286

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