Saint-Gobain // Universal Registration Document 2021

Financial and accounting information 2021 Consolidated Financial Statements

In the balance sheet, changes in net deferred tax assets and liabilities break down as follows:

Deferred taxes are offset at the level of each tax entity, i.e. , by tax group where applicable (mainly in France, the United Kingdom, Spain, Germany, the United States and the Netherlands). Deferred tax assets of €576 million were recognized at December 31, 2021 (€665 million at December 31, 2020), primarily in France (€89 million), the United States (€43 million), Germany (€183 million) and Italy (€53 million). Deferred tax liabilities of €555 million were recognized at December 31, 2021 (€360 million at December 31, 2020), including €309 million in the United Kingdom, €59 million in Switzerland, €40 million in India, and €39 million in Denmark. Deferred tax liabilities in other countries were not material. 12.3 Deferred tax assets are recognized only if it is considered probable that there will be sufficient future taxable income against which the temporary difference can be utilized. They are reviewed at the end of each reporting period and written down to the extent that it is no longer probable that there will be sufficient taxable income against which the temporary difference can be utilized. In determining whether to recognize deferred tax assets for tax loss carry-forwards, the Group applies a range of criteria that take into account the probable recovery period based on business plans and the strategy for the long-term recovery of tax losses applied in each country. The Group recognized deferred tax assets for tax loss carry-forwards for a net amount of €410 million at December 31, 2021 and €440 million at December 31, 2020. This principally relates to the United States, for which the recovery period is shorter than the maximum utilization period of 20 years, and to France, Germany and Spain, where tax consolidation generally ensures that deferred tax can be recovered. In these countries, tax losses may be carried forward indefinitely. Nevertheless, after analyzing each situation, the Group may decide not to recognize them. At December 31, 2021, deferred tax assets whose recovery is not considered probable totaled €299 million (December 31, 2020: €374 million) and a provision had been accrued for the full amount. Unrecognized deferred tax assets chiefly relate to France, China, Germany, Spain and the United States. In light of the improved situation in France, €53 million of the €60 million provision recognized at December 31, 2020 was written back in 2021. Tax loss carry-forwards

Net deferred tax asset/(liability)

(in EUR millions)

NET VALUE AT JANUARY 1, 2020 Deferred tax (expense)/benefit

385

(7)

Changes in deferred taxes relating to actuarial gains and losses (IAS 19) Liability method on actuarial gains and losses Translation adjustments and restatement for hyperinflation

4

16

(1)

Assets and liabilities held for sale Changes in Group structure and other NET VALUE AT DECEMBER 31, 2020

(3)

(89) 305 (76)

Deferred tax (expense)/benefit

Changes in deferred taxes relating to actuarial gains and losses (IAS 19) Liability method on actuarial gains and losses * Translation adjustments and restatement for hyperinflation

(196)

60

(11)

Assets and liabilities held for sale Changes in Group structure and other NET VALUE AT DECEMBER 31, 2021

0

(61)

21 In 2021, the liability method on actuarial gains and losses mainly * concerns the United Kingdom.

Changes in Group structure relate mainly to the first-time consolidation of Chryso. The table below shows the main deferred tax components:

Dec. 31, 2021

Dec. 31, 2020

(in EUR millions)

Pensions

246

465

Brands, customer relationships and intellectual property

(512)

(432)

Depreciation and amortization, accelerated capital allowances and tax-driven provisions

(693)

(644)

Tax loss carry-forwards

410 440 570 476

Other

NET DEFERRED TAX Of which: Deferred tax assets Deferred tax liabilities

21

305

8

576

665

(555)

(360)

Subsequent events NOTE 13

None.

Fees paid to the Statutory Auditors NOTE 14

Total fees paid to the Statutory Auditors and recognized in the income statement in 2021 and 2020 are detailed in the “Additional information and cross-reference tables” section of the Universal Registration Document.

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 331