Saint-Gobain // Universal Registration Document 2021

Strategy The Group’s environment

New build remain dynamic in the coming years, with stronger growth in emerging countries, where an average growth rate of The new construction market is driven globally by almost 4% per year in volume is expected over the period population growth, urbanization and the need to replace 2020-2030 (1) , with a high level of diversity. buildings, with pressing needs in terms of carbon neutrality, circularity and productivity; the segment will Growth rate of the construction market in relation to market volume in selected emerging countries, 2020-2030 (2) . 1.2.1.2

2

6%

Egypt

Kenya

Colombia

5%

Thailand

Nigeria

4%

Romania

Malaysia

Brazil

Hungary

Turkey

3%

United Arab Emirates

South Africa

Israel

Russia

Mexico

2%

Jordan

Poland

Taiwan

Chile

South Korea

1%

0%

0

20

40

60

80

100

120

140

Sustainable mobility 1.2.2 The mobility market is influenced by long-term dynamics. The automotive sector as a whole will grow , with production of light vehicles set to increase by 9.5% in average over 2022-2024, marking a return to normal after the sharp decline recorded in 2020 and the stagnation of 2021. Electric vehicles, in which Saint-Gobain holds leading positions, will account for most of this growth. As a result, in particular, of changes in standards, the spread of restrictions imposed by metropolitan areas, and the continuation of government subsidy programs, electric vehicles are expected to represent around 50% of the market by 2030 in most developed countries (Western Europe, United Kingdom, Japan) and China, and around 40% in Brazil and India (3) . There has been a sharp acceleration in the electrification of the vehicle fleet with the announcement by the European Commission of a target of 100% sales of electric cars by 2035. All car manufacturers have since positioned themselves in relation to this deadline, by announcing their own roadmap for the electrification of their range. The “Fit for 55” strategy published by the Commission also provides for changes in the taxation of fuels and the deployment of charging infrastructure for vehicles. Consequently, we are witnessing a veritable explosion in the electric vehicle market on the continent, with an annual volume of 6.4 million expected for 2021, which would represent a growth of 98% year on year.

In the new construction market, traditional construction methods are being challenged by the rapid emergence of light construction techniques , which offer significant performance benefits in terms of consumption of raw materials (up to 50% reduction), and therefore decarbonization , and also in terms of time savings (up to 20% of the construction process on site) and therefore productivity , especially in situations of rapid urbanization. They also bring benefits in terms of well-being , thanks to improved thermal, acoustic and visual comfort. The penetration of this construction method is high because it responds to challenges both in developed countries (pressure on natural resources, search for productivity and lack of labor for professionals, expectations of modularity and environmental responsibility on the part of end users) and in emerging countries (benefits in terms of speed of construction, housing needs created by population growth). Its growth will therefore exceed that of the construction sector as a whole, offering particularly significant sources of value.

(1) IHS, September 2021. (2) IHS, September 2021. Projections for a selection of 20 emerging countries on 4 continents. Growth is indicated in terms of compounded annual growth rate. Market volume is indicated in billions of US dollars. Among this selection, underlined names refer to countries where Saint-Gobain has made significant acquisitions or investment operations in 2021 (see chapter 1, "Timeline of significant events"). (3) KPMG International, GAES 2021.

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