Saint-Gobain // Universal Registration Document 2021

8

Financial and accounting information 2021 Consolidated Financial Statements

The table below presents right-of-use assets for lease contracts by category:

Land and buildings

Machinery and equipment

Total

(in EUR millions)

At January 1, 2020 Gross value

5,786

1,118

6,904

Accumulated depreciation and impairment

(3,389)

(561)

(3,950)

NET VALUE

2,397

557

2,954

Changes during the year New leases

589

244

833

Lease modifications

49

0

49

Disposals

(63) (67)

(14) (19)

(77) (86)

Translation adjustments

Depreciation Impairment

(462)

(213)

(675)

(23)

(7)

(30)

Assets held for sale

0

0

0

Changes in Group structure and other

(53) (30)

(13) (22)

(66) (52)

TOTAL CHANGES

At December 31, 2020 Gross value

5,549 (3,182) 2,367

1,070 (535)

6,619

Accumulated depreciation and impairment

(3,717) 2,902

NET VALUE

535

Changes during the year New leases

538

231

769

Lease modifications

10

0

10

Disposals

(46)

(18)

(64)

Translation adjustments

47

13

60

Depreciation Impairment

(463)

(216)

(679)

(11)

(3)

(14)

Changes in Group structure and other

17

8

25

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

(40)

(10)

(50)

52

5

57

5,761

1,133

6,894

Accumulated depreciation and impairment

(3,342)

(593)

(3,935)

NET VALUE

2,419

540

2,959

Impairment review 7.5 Impairment of property, plant 7.5.1

exhaustively at the level of each cash-generating unit (CGU). In 2021, the number of CGUs was reduced from 27 to 23, following various disposals and reorganizations within the Group. Assets and liabilities held for sale are carried at the lower of their fair value less costs to sell and their net carrying amount. The method used for these impairment tests is consistent with that used by the Group to value companies acquired in business combinations or acquisitions of equity interests. The carrying amount of the CGUs is compared to their value in use, corresponding to the net present value of future cash flows excluding interest but including tax. It is determined using assumptions made by management based on estimates and judgments including future changes in sales, profitability, investments and other cash flows arising from the use of the corresponding assets, as well as the discount rate applied to future cash flows. Cash flows for the last year of the business plan beyond the three-year forecast period are rolled forward over the following two years. For impairment tests of goodwill, normative cash flows (corresponding to cash flows at the mid-point in the business cycle) are then projected to perpetuity using an annual growth rate (between 1.5% and

and equipment, intangible assets, goodwill and right-of-use assets

Property, plant and equipment, right-of-use assets, goodwill and other intangible assets are tested for impairment on a regular basis and at least annually for the December 31 closing. These tests consist of comparing the asset’s carrying amount to its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use, calculated by reference to the net present value of the future cash flows expected to be derived from the asset. For property, plant and equipment, amortizable intangible assets and right-of-use assets, an impairment test is performed whenever revenues from the asset decline or the asset generates operating losses due to either internal or external factors, and no material improvement is forecast in the relevant business plan. For goodwill and other unamortized intangible assets (including brands with indefinite useful lives), an impairment test is performed at least annually based on financial forecasts. Goodwill is reviewed systematically and

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