Saint-Gobain // Universal Registration Document 2021

Financial and accounting information 2021 Consolidated Financial Statements

In 2021, changes in Group structure relate mainly to the first-time consolidation of Chryso. Translation adjustments and restatement for hyperinflation primarily reflect the impacts of fluctuations in the US dollar, pound sterling, Chinese renminbi, Indian rupee, Mexican peso, Czech koruna, Norwegian krone, Argentine peso, Brazilian real, Canadian dollar and Turkish lira. In 2020, changes in Group structure related mainly to the first-time consolidation of Continental Building Products. Translation adjustments and restatement for hyperinflation primarily reflected the impacts of fluctuations in the Brazilian real, US dollar, Mexican peso, Indian rupee, pound sterling, Polish zloty, Russian ruble and Argentine peso. to leases The Saint-Gobain Group has chosen to apply IFRS 16 using the full retrospective method at January 1, 2019 ( i.e. , with effect from January 1, 2018) and has restated all of its leases that were identified ahead of first-time application of the standard. Entities’ historical lease contracts were restated with effect from the date on which the entities were first consolidated by the Group. The following recognition exemptions proposed by IFRS 16 have been used by the Group: leases with a lease term of 12 months or less; ■ leases where the underlying asset has a value of less ■ than USD 5,000 when new. Property leases The lease term corresponds to the non-cancelable period of the lease, plus any renewal (or termination) options that the Group is reasonably certain to exercise (or not to exercise). The Group determined whether or not lease renewal (or termination) options were reasonably certain to be exercised based on the location of, and any improvements inseparable from, the leased asset. The lease term at inception for “3/6/9-year” commercial leases in France is generally nine years. The Group did not identify any material leases with similar characteristics in other countries. Right-of-use assets linked 7.4

At December 31, 2019 and with retroactive effect from January 1, 2018, Saint-Gobain took account of the IFRIC’s November 2019 agenda decision in reviewing the terms of its automatically renewable leases, considering the importance of the underlying assets to its operations. The discount rate used to calculate the lease liability is the incremental borrowing rate. This rate is applied at the commencement of the lease or at the date of the decision to renew the lease. The Group calculated the rate applicable to each lease contract on the basis of its duration, which reflects the payment profile of the lease liability. The useful life of non-movable leasehold improvements cannot exceed the useful life of the right-of-use assets to which they relate. Leases other than property leases The main leases identified correspond to leases of vehicles, machinery and production equipment. The lease capitalization period (lease term) represents the non-cancelable period of the lease. Where leases provide for a renewal (or termination) option, the Group determined whether or not that option was reasonably certain to be exercised based on the ease with which the leased asset could be replaced and its criticality. The discount rate used to determine the lease liability is calculated using the same approach as for property leases. The interest rate implicit in the lease is used as the discount rate only in the case of non-property leases and only if this is expressly stipulated in the lease contract. Although leases can generally incorporate indexation clauses, lease liabilities are measured based solely on indexes known at the end of the reporting period. At December 31, 2021, right-of-use assets under leases relate mainly to land and buildings for €2,419 million (€2,367 million at December 31, 2020) and to machinery and equipment for €540 million (€535 million at December 31, 2020). Lease payments made under low-value and/or short-term leases, along with variable lease payments or lease payments falling outside the scope of IFRS 16, totaled €169 million in 2021 (€158 million in 2020).

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