Saint-Gobain // Universal Registration Document 2021

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Financial and accounting information 2021 Consolidated Financial Statements

Operating free cash flow 5.3.3 Operating free cash flow (OFCF) represents the surplus cash generated from the entity’s operations and is calculated as operating income plus non-operating income and expense and changes in working capital, less operating depreciation and amortization, investments in property, plant and equipment and intangible assets, and right-of-use assets. Return on capital employed 5.3.4 Return on capital employed (ROCE) corresponds to annualized operating income adjusted for changes in the scope of consolidation (based on 12 months’ of operating income for acquired companies and with no operating income taken into account for divested companies), expressed as a percentage of total assets at the year end. Total assets include net property, plant and equipment, working capital, net goodwill, other intangible assets and assets and liabilities held for sale, but exclude deferred tax assets arising on non-amortizable brands and land. Recurring net income 5.3.5 Recurring net income corresponds to income after tax and non-controlling interests but before disposal gains or losses, asset impairment, material non-recurring provisions and the related tax and minority interests.

Recurring net income totaled €2,815 million in 2021 (2020: €1,470 million). Based on the weighted average number of shares outstanding at December 31 (526,244,506 shares in 2021 and 536,452,195 shares in 2020), recurring earnings per share amounted to €5.35 in 2021 and €2.74 in 2020. The difference between net income and recurring net income corresponds to the following items:

2021 2,521

2020

(in EUR millions)

GROUP SHARE OF NET INCOME Less: Gains (losses) on disposals of assets Impairment of assets and other

456

(7)

(28)

(272)

(1,007)

Changes in provisions for non-recurring items

0

(42)

Impact of non-controlling interests Tax on disposal gains and losses, asset impairment, non-recurring provisions and write-downs of deferred taxes on tax loss carry-forwards GROUP SHARE OF RECURRING NET INCOME

(1)

1

(14)

62

2,815 1,470

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 294

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