Saint-Gobain // Universal Registration Document 2021

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Financial and accounting information 2021 Consolidated Financial Statements

Contingent liabilities and litigation 9.2 Antitrust law and related proceedings 9.2.1 9.2.1.1 Investigation by the Swiss Competition Commission in the sanitary products wholesale industry In November 2011, the Swiss Competition Commission ( Commission suisse de la concurrence ) opened an investigation into anti-competitive practices in the sanitary products wholesale industry. In May 2014, the Commission Secretariat issued a notice of complaints against Sanitas Troesch and other wholesalers in the industry alleging that Sanitas Troesch and some of its competitors had, among other things, agreed in 2005 and 2012 to lower gross prices. The total fine imposed on all companies involved is CHF 80 million. For Sanitas Troesch, the fine is CHF 28.8 million. Sanitas Troesch appealed this decision on May 2, 2016 and continues to firmly refute the claims made. The hearing took place before the Federal Administrative Court on January 21, 2020 and the date on which the Federal Administrative Court will issue its decision is not yet known. However, a provision for claims and litigation was recognized at December 31, 2015 in an amount equivalent to the fine (unchanged as at December 31, 2021). 9.2.1.2 Investigation by the French Competition Authority in the building insulation products industry On July 28, 2014, the French Competition Authority sent a statement of objections to Saint-Gobain Isover and Compagnie de Saint-Gobain (as parent company of the Saint-Gobain Group). A hearing took place on May 11, 2016, whereupon the Competition Authority sent the case back for further investigation in light of the arguments put forward by Saint-Gobain Isover and Compagnie de Saint-Gobain. In October 2018, Saint-Gobain Isover and Compagnie de Saint-Gobain received a second statement of objections, in which the Competition Authority alleges anti-competitive practices in the building insulation products market, between 2001 and 2013. Saint-Gobain Isover and Compagnie de Saint-Gobain rejected the allegations in their response to the second statement of objections filed in January 2019. A new report was sent by the Authority at the end of 2019, which gave rise to comments in response from Saint-Gobain Isover and Compagnie de Saint-Gobain on February 11, 2020. The hearing before the Competition Authority was held on October 6, 2020. By decision dated January 14, 2021, the French Competition Authority considered that the alleged anti-competitive practices were not established and dismissed all the objections notified. Actis appealed this decision to the Paris Court of Appeal on February 26, 2021, following which the other parties, including Saint-Gobain Isover and Compagnie de Saint-Gobain filed incidental appeals. Hearing is expected to occur end of 2022.

Provisions for claims, litigation 9.1.1 and environmental risks

These provisions cover costs relating to litigation, environmental protection measures, as well as site rehabilitation and clean-up costs. They cover in particular PFOA-related proceedings and the antitrust lawsuit in the Distribution sector in Switzerland. Litigation provisions amounted to €155 million at December 31, 2021. These provisions are described in further detail in note 9.2 “Contingent liabilities and litigation”. The decrease in provisions for claims and litigation at December 31, 2020 primarily reflected the deconsolidation of DBMP LLC, which carried on its books the legacy asbestos-related claims against the former CertainTeed Corporation. The offsetting entry for this decrease was a rise in provisions for other risks, which mainly results from the financing commitments undertaken by CertainTeed LLC in favor of DBMP LLC (see note 9.2.2.2 discussing asbestos-related liabilities in the United States). Provisions for restructuring costs 9.1.2 and personnel expenses Provisions for restructuring costs and personnel expenses amounted to €163 million at December 31, 2021 (December 31, 2020: €222 million). These provisions cover restructuring transactions (personnel costs and other charges linked to reorganization plans), as well as provisions for personnel expenses unrelated to restructuring plans, in particular provisions for severance payments. Provisions for customer warranties 9.1.3 These provisions cover the Group’s commitments under warranties granted to customers mainly in the United States. They are determined on a statistical basis using a range of criteria and take into account contractual warranty payments made in prior years in the business and region concerned. In addition, specific provisions may be set aside for identified contingencies in the context of a specific claim. Provisions for other contingencies 9.1.4 At December 31, 2021, provisions for other contingencies amount to €580 million (December 31, 2020: €524 million) and mainly concern the United States (€427 million), France (€52 million) and Brazil (€68 million). Investment-related liabilities 9.1.5 Investment-related liabilities correspond to commitments to purchase minority interests, liabilities relating to the acquisition of shares in Group companies, and minority shareholder puts. In 2021, changes in investment-related liabilities primarily concerned liabilities relating to the acquisition of equity interests.

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 316

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