Saint-Gobain // Universal Registration Document 2021

Financial and accounting information 2021 Consolidated Financial Statements

Stock option plans 6.4.2 Until 2018, Compagnie de Saint-Gobain operated stock option plans for certain employees. Under these plans, the Board of Directors granted options allowing beneficiaries to obtain Saint-Gobain shares at a price set, at no discount, by reference to the average of the opening prices for the Saint-Gobain share over the 20 stock market trading days preceding the date of the decision by the Board of Directors. For all of the plans, beneficiaries must wait at least four years from the grant date to exercise any options. None of the options received may be exercised until this four-year period has lapsed. Options must be exercised within 10 years of the grant date. Except in specified circumstances, grantees forfeit these options if they leave the Group. Among the plans outstanding at December 31, 2021, the 2012 plan offers subscription options, while the 2013, 2015, 2016 and 2017 plans offer purchase options. For plan launched in 2018, the Board of Directors has decided that it would determine the type of option (subscription or purchase) at the latest on the day before the start of the exercise period, with any options exercised prior to such decision considered as subscription options. A performance condition applies for all beneficiaries under current plans. No stock options plan has been launched since 2019.

The following table presents changes in the number of outstanding options:

Average exercise price (in EUR)

€4 par value shares

OPTIONS OUTSTANDING AT DECEMBER 31, 2019

1,057,522

40.12

Options granted Options exercised Options forfeited

(212,998)

40.43

OPTIONS OUTSTANDING AT DECEMBER 31, 2020

844,524 40.04

Options granted Options exercised Options forfeited*

(151,173) (83,875)

38.59 49.38

OPTIONS OUTSTANDING AT DECEMBER 31, 2021 39.11 Including 66,875 options granted under the 2017 stock option plan * that lapsed because the performance conditions were not met, and 17,000 lapsed after they had been withdrawn. 609,476

The cost of stock option plans is calculated using the Black & Scholes option pricing model. The following inputs were used: volatility assumptions that take into account the ■ historical volatility of the share price over a rolling 10-year period, as well as implied volatility from traded share options. Periods of extreme share price volatility are disregarded; assumptions relating to the average holding period of ■ options, based on observed behavior of option holders; expected dividends, as estimated on the basis of ■ historical dividend information dating back to 1988; a risk-free interest rate corresponding to the yield on ■ long-term government bonds; the effect of any stock market performance conditions, ■ which is taken into account in the initial measurement of IFRS 2 share-based payment expense. The cost calculated using this method is recognized in the income statement over the vesting period of the options, which is a maximum of four years. Under IFRS 2, the expense attributable to the amortization of stock options granted under previous plans totaled €0.4 million in 2021 (€0.7 million in 2020).

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