Saint-Gobain // Universal Registration Document 2021

Financial and accounting information 2021 Consolidated Financial Statements

Certain retail or manufacturing brands acquired are treated as intangible assets with indefinite useful lives as they have a strong national and/or international reputation. These brands are not amortized but are tested systematically for impairment on an annual basis. Other brands are amortized over their useful lives, not exceeding 40 years. Customer relationships are amortized over the attrition period used to value these assets. Costs incurred to develop software in-house – primarily configuration, programming and testing costs – are

recognized as intangible assets. Patents and purchased computer software are amortized over their estimated useful lives, not exceeding 20 years for patents and three to five years for software. Research costs are expensed as incurred. Development costs meeting the recognition criteria under IAS 38 are included in intangible assets and amortized over their estimated useful lives (not exceeding five years) from the date when the products to which they relate are first marketed.

Changes in other intangible assets during 2021 and 2020 are analyzed below:

Intellectual property and customer relationships Software

Total intangible assets

Other

Brands

(in EUR millions)

At January 1, 2020 Gross value

2,876 (843) 2,033

86

1,365 (972)

636

4,963

Accumulated amortization and impairment

(14)

(425)

(2,254)

NET VALUE

72

393

211

2,709

Changes during the year Acquisitions

34 (1)

80 (2) (8)

114 (3)

Disposals

Translation adjustments and restatement for hyperinflation

(51)

(46) (42)

(11)

(116) (181)

Amortization*

(8)

(113)

(18)

Impairment

(450)

(12)

(3)

(465)

Transfers

81

(81) (4)

0

Changes in Group structure and other

3

458

5

462 (15)

Assets held for sale TOTAL CHANGES At December 31, 2020 Gross value

(7)

0

(8)

0

(513)

370

(25)

(36)

(204)

2,062 (542) 1,520

496 (54) 442

1,323 (955)

536

4,417

Accumulated amortization and impairment

(361)

(1,912) 2,505

NET VALUE

368

175

Changes during the year Acquisitions

41

69

110 (3) 80

Disposals

(4)

1

Translation adjustments and restatement for hyperinflation

37

31

8

4

Amortization*

(8) (4)

(47) (25)

(121)

(18)

(194) (40)

Impairment

(9)

(2)

Transfers

56

(56)

0

8

Changes in Group structure and other

160

93

4

(7) (2) (11)

250

Assets held for sale TOTAL CHANGES At December 31, 2021 Gross value

(1)

(3)

185

52

(26)

200

2,294 (589) 1,705

651

1,411

548

4,904 (2,199)

Accumulated amortization and impairment

(157) 494

(1,069)

(384)

NET VALUE 2,705 “Amortization” includes amortization charged against intangible assets within the scope of purchase price accounting, representing €52 million in * 2021 (2020: €46 million). 342 164

The breakdown of brands, intellectual property and customer relationships by segment is provided in the segment information tables in note 5 “Information concerning the Group’s operating activities”. In 2021, changes in Group structure relate mainly to brands and customer relationships acquired as a result of the Chryso acquisition for €158 million and €48 million, respectively. They also include customer relationships acquired as a result of the MS Techniques, Transluminal and Duraziv acquisitions for a total amount of €23 million,

as well as Saint-Gobain Brüggemann Holzbau GmbH intellectual property for €10 million. Impairment losses were recognized against certain individual assets for a total of €40 million. In 2020, changes in Group structure related mainly to customer relationships acquired as a result of the Continental Building Products acquisition for €422 million. Impairment losses were recognized for a total of €465 million.

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 307