Saint-Gobain // Universal Registration Document 2021

8

Financial and accounting information 2021 Consolidated Financial Statements

Employees, personnel expenses and employee NOTE 6 benefit obligations

6.1

Employees of fully consolidated

6.3

Provisions for pensions and other

companies

employee benefits Description of defined benefit plans 6.3.1

Average headcount

2021

2020

After retirement, some of the Group’s former employees are eligible for pension benefits in accordance with the applicable laws and regulations in the respective countries in which the Group operates. There are also additional pension obligations in certain Group companies, both in France and in other countries. The Group’s obligation for the payment of pensions and length-of-service awards is determined at the end of the reporting period by independent actuaries using the projected unit credit method (taking into account changes in salaries until retirement) and the economic conditions in each country. This obligation may be financed by pension funds, with a provision recognized in the balance sheet for the unfunded portion. When plan assets exceed the defined benefit obligation, the excess is recognized in other non-current assets under “Net pension assets”. The asset ceiling corresponds to the maximum future economic benefit. Changes in the asset ceiling are recognized in equity. Actuarial gains and losses result from changes in actuarial assumptions, experience adjustments and the difference between the funds’ actual and estimated (calculated) rates of return. They are recognized against equity as and when they arise. The interest cost of these obligations and the return on the related plan assets are measured by the Group using the discount rate applied to estimate the obligation at the beginning of the period, and are recognized as financial income or expense. The Group’s main defined benefit plans are described below. In France, employees receive length-of-service awards on retirement based on years of service and the calculation methods prescribed in the applicable collective bargaining agreements. In addition to length-of-service awards, there are three defined benefit plans, all of which are final salary plans. These plans were closed to new entrants by the companies concerned between 1969 and 1997. Effective March 1, 2012, a defined benefit plan complying with Article L.137-11 of France’s Social Security Code ( Code de la sécurité sociale ) was set up by Compagnie de Saint-Gobain. Pursuant to an order of July 4, 2019 issued in the wake of France’s PACTE Law setting out an action plan for business growth and transformation, this plan was closed and any vested rights frozen at December 31, 2019. In 2021, two new plans were set up pursuant to Article L. 137-11-2 resulting from the PACTE Law, effective January 1, 2020. Under these plans, final payments are made to a third-party insurer who takes on responsibility for the liability. In 2021, the Group applied the IFRIC agenda decision, “Attributing Benefit to Periods of Service”, which changes the method for calculating obligations under certain defined benefit plans. Since the impact of applying this agenda decision was not material at January 1, 2021, the 2020 financial statements have not been restated.

Managerial-grade employees Administrative employees

29,007 69,398 68,475

29,027 70,658 68,775

Other employees

TOTAL AVERAGE NUMBER OF EMPLOYEES

166,880 168,460

Closing headcount The total number of Group employees for fully consolidated companies was 167,816 employees at December 31, 2021 and 167,552 employees at December 31, 2020. 6.2 Direct and indirect compensation and benefits paid to the members of the Board of Directors and to the Group’s senior management were as follows in 2021 and 2020: Management compensation

2021

2020

(in EUR millions)

Directors’ compensation

1.1

1.0

Direct and indirect compensation (gross) Fixed portion

8.7 5.5

8.1 5.2 6.6

Variable portion

Share-based payment expense (IFRS 2) TOTAL EXCLUDING ESTIMATED COST OF PENSIONS AND OTHER EMPLOYEE BENEFIT OBLIGATIONS (IAS 19) Estimated cost of pensions and other employee benefit obligations (IAS 19)*

16.2

31.5

20.9

5.7

1.8

TOTAL 22.7 The year-on-year rise in the expense for 2021 is due to the transfer * of obligations to a third-party insurer falling within the scope of Article L. 137-11 of the French Social Security Code. 37.2

Total gross compensation and benefits paid in 2021 to Saint-Gobain management by the French and foreign companies in the Group (excluding any long-term cash settled compensation) amounted to €14.2 million (2020: €13.3 million), including €5.5 million in gross variable compensation (2020: €5.2 million). Provisions for pensions and other post-employment benefit obligations (defined benefit obligations [DBO] in respect of length-of-service awards and pensions) accruing to Group management totaled €31 million at December 31, 2021 (December 31, 2020: €46 million). The decrease in this item reflects changes during the year as well as the transfer of obligations to a third-party insurer falling within the scope of Article L. 137-11 of the French Social Security Code, as taken up in the PACTE Law.

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 298

www.saint-gobain.com