Saint-Gobain // Universal Registration Document 2021

Financial and accounting information 2021 Consolidated Financial Statements

The table below gives an analysis, as of December 31, 2021, of the sensitivity of the Group’s pre-tax income to a 10% increase in the exchange rates of the following currencies given the subsidiaries’ residual net foreign exchange exposure:

Assuming that all other variables remained unchanged, a 10% fall in the exchange rates for these currencies at December 31, 2021 would have the opposite impact. Note 10.4 provides a breakdown of instruments used to hedge foreign exchange risk. 10.1.3.4 Saint-Gobain share price risk The Group is exposed to changes in the Saint-Gobain share price as a result of its performance unit incentive plans. To reduce its exposure to fluctuations in the share price, the Group uses hedging instruments such as equity swaps. As a result, if the price of the Saint-Gobain share changes, any changes in the expense recorded in the income statement will be fully offset by the hedges in place. Note 10.4 provides a breakdown of instruments used to hedge share price risk.

Currency of exposure (in millions of euro equivalent)

Impact on pre-tax income

EUR USD

(0.1)

1.4

Other currencies

(0.2)

TOTAL

1.1

Net financial income (expense) 10.2 Net financial income (expense) includes borrowing and other financing costs, income from cash and cash equivalents, interest on lease liabilities, interest cost for pension and other post-employment benefit plans net of the return on plan assets, and other financial income and expense. Net financial income (expense) in 2021 and 2020 includes:

2021 (240)

2020 (274)

(in EUR millions)

Borrowing costs, gross

Income from cash and cash equivalents

7

6

BORROWING COSTS, NET, EXCLUDING LEASE LIABILITIES

(233)

(268)

Interest on lease liabilities

(54)

(58)

TOTAL BORROWING COSTS, NET

(287) (190)

(326) (234) 204 (30) (105)

Interest cost – pension and other post-employment benefit obligations

Return on plan assets

160

INTEREST COST – PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS, NET

(30) (106)

Other financial expense Other financial income*

16

42

OTHER FINANCIAL INCOME AND EXPENSE NET FINANCIAL INCOME (EXPENSE)

(90)

(63)

(407)

(419)

Including €33 million of dividends received from Sika in 2020. *

8

Net debt 10.3 Long- and short-term debt 10.3.1 10.3.1.1 Long-term debt Long-term debt includes bonds,

10.3.1.2 Short-term debt Besides the current portion of long-term debt described above, short-term debt includes financing programs such as commercial paper, short-term securitization, bank overdrafts and other short-term financial liabilities including the fair value of derivatives related to debt and accrued interest on borrowings. Short-term debt, excluding derivatives related to debt, is measured at amortized cost at the end of the reporting period. Premiums and issuance costs are amortized using the effective interest rate method. 10.3.1.3 Lease liabilities Lease liabilities represent obligations to make lease payments in accordance with IFRS 16.

perpetual bonds, participating securities, long-term securitization and all other types of long-term financial liabilities, including the fair value of interest rate hedging derivatives. Under IAS 32, the distinction between financial liabilities and equity is based on the substance of the contracts concerned rather than their legal form. As a result, participating securities are classified as debt. At the end of the reporting period, long-term debt (excluding interest rate derivatives) is measured at amortized cost. Premiums and issuance costs are amortized using the effective interest method.

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