Compagnie de Saint Gobain : 2021 Universal Registration Document - PDF

CONTENTS

Chairman's message 2

Chief Executive Officer's

message 3

Saint-Gobain Today 5

1. Saint-Gobain in figures 6

2. Saint-Gobain's DNA 13

3. Highlights of 2021 20

4. The Group's activities 24

5. Organization and governance 33

Strategy 37

1. The Group's environment 39

• 2. Saint-Gobain's vision: to be the worldwide leader in light and

  sustainable construction 53

• 3. The action: a strategic plan

  based on six priorities 54

4.

The financial approach: allocating the Group's resources

efficiently 66

An efficient and

responsible Group 69

• 1. Demonstrate ethics and

  responsibility 70

• 2. Maximize the contribution for the planet and communities 80

• 3. Achieve excellence in operations 96

• 4. Promoting a healthy, open and

  engaging work environment 107

2021 results and outlook

for 2022 121

1. Financial results 123

2. Non-financial results 134

Corporate governance 153

• 1. Composition and operation of

  the governing bodies 154

• 2. Compensation of the management and governing

  bodies 181

• 3. Company stock traded

  by corporate officers 221

4. Report of the Board of Directors on corporate governance (Articles L.225- 37 et seq. and L.22-10-10 et seq. of the French

Commercial Code) 222

5.

Statutory Auditors' special report on related-party

agreements 223

Risks and control 227

1. Risk factors 228

2. Internal control 238

Capital and ownership 7 255

structure

1. Capital stock 256

• 2. Stock market

  information/Securities market 264

• 3. Information policy and financial

  calendar 269

4.

Dividends 271

Financial and 8 accounting information

• 1. 2021 Consolidated FinancialStatements 274

• 2. Statutory Auditors' report on the consolidated financialstatements

• 3. Compagnie de Saint-Gobain 2021 annual financial statements

  (parent company) 339

• 4. Statutory Auditors' report on the financial statements 364

• 5. Management report Compagnie de Saint-Gobain annual financial

  statements 368

6. Five year financial summary 371

Additional information and cross-reference

tables 373

1. Additional information 374

2. CSR Information 381

3. Cross-reference tables 389

4. Glossary 398

The elements of the annual financial report are identified in the table of contents by the AFR icon The Non-Financial Performance Declaration is identified by the EFPD icon EFPD

273 AFR

335

2021 UNIVERSAL REGISTRATION DOCUMENT

Including the annual financial report

www.saint-gobain.com

On March 22, 2022, the French version of this Universal Registration Document was filed with the French Financial Markets Authority (Autorité des marchés financiers, AMF), the competent authority pursuant to (EU) Regulation No. 2017/1129, without prior approval, in accordance with Article 9 of said regulation.

The French version of this Universal Registration Document may be used for the purposes of a public offer of securities or the admission of securities to trading on a regulated market if it is supplemented with a securities note and, if required, a summary note, as well as all updates made to the Universal Registration Document. The whole is then approved by the AMF in accordance with (EU) Regulation No. 2017/1129.

This English-language version of the Universal Registration Document is a free translation of the original French version of the Universal Registration Document made available on the Company's website. It is not a binding document. In the event of a conflict of interpretation, reference should be made to the French version which is the authentic text. The auditors' report applies to the French version of the Management Report and the financial statements.

SAINT-GOBAIN

UNIVERSAL REGISTRATION DOCUMENT 2021

1

Governance, strategy, social and environmental commitment: in 2021, Saint-Gobain opened a new chapter in its history and achieved a historic performance that I would like to salute here. Our Group has once again demonstrated its resilience and its unwavering ability to reinvent itself. This performance is the result of the ever-renewed commitment of Saint-Gobain teams on all continents, around an ambitious and demanding purpose. It is also the translation of a consistent strategy and a clear vision; finally, it is the result of a historical culture of transmission, based on trust and empowerment of all. With such assets, the

Message from Pierre-André de Chalendar

Chairman of the Board of Directors of Saint-Gobain

Group is ready to pursue profitable and sustainable growth. As Chairman of the Board of Directors, I am delighted by this for our employees, for our customers and for all our stakeholders.

The 2021 figures, announced on February 24, highlight Saint-Gobain's financial performance as well as its progress in terms of

Saint-Gobain has a unique business model that combines profitable performance and contribution to sustainable development.

corporate social responsibility. These results open a new page in the Group's history, and build on the profound and successful transformation of the company, initiated at the end of 2018 through the Transform & Grow plan. They also reflect Saint-Gobain's determination to create value by taking into account, more than ever, the interests of all its stakeholders. Guided by the strength of its purpose, Making the World a Better Home, the Group has a unique business model that combines profitable performance and contribution to sustainable development. The non-financial key performance indicators show strong environmental and social progress in 2021, enabling Saint-Gobain to reduce its

footprint while maximizing its positive impact across its entire value chain. I would like to remind you that the Group, which had already announced its target to reduce its CO2 emissions by 20% between 2010 and 2025, is committed to achieving the target of "net zero emissions" by 2050.

The Board of Directors is pleased with this progress as well as with this strategy implemented by Senior Management. In this respect, I am pleased with the Board's decision to follow my proposition and appoint Benoit Bazin to succeed me as Chief Executive Officer. This transition reflects Saint-Gobain's

image; it underlines its trust in talent and its commitment to the transmission of its values and vision.

I am also delighted by the quality of the collaboration between the Group's governance bodies and within its Board of Directors, whose work benefits from the broad international experience and diversity of its members, keeping with Saint-Gobain's global dimension and

diversity.

The Board of Directors is thus very confident in the Group's ability to fully achieve its growth and development objectives in 2022 and well beyond.

Message from Benoit Bazin

Chief Executive Officer of Saint-Gobain

2021 was an outstanding year for Saint-Gobain, marked by the successful execution of our Grow & Impact plan, in the service of our strategy to position the Group as the worldwide leader in light and sustainable construction; a year of commitment, with the acceleration of our strategy in terms of corporate social responsibility. Saint-Gobain achieved record financial performance in 2021 and was able to make the most of a very dynamic market environment. Made possible by the very high level of commitment of the teams worldwide, this robust momentum allows the Group to continue to move forward and aim for another year of growth in 2022.

The 2021 results, underlined by a strong increase in the share price, are first and foremost the result of the expertise and unfailing mobilization of all Saint-Gobain employees, under the responsibility of a new management team. With 50% non-French, eight nationalities and nearly 40% women, this new Executive Committee reflects the wealth and diversity of our talent on a global scale.

This is also the result of two major developments. First, a new organizational structure. This is based on the complete success of our Transform & Grow competitiveness plan, undertaken three years ago and which has created an organization with simplified governance, a rapid decision-making process and a widespread culture of trust, empowerment and collaboration. Local leaders, who are native to their country in more than 90% of cases, now control all of Saint-Gobain's activities within their scope, as close as possible

in 2020, it is this approach that has led us to develop a global leadership in construction chemicals, thanks in particular to the two significant acquisitions announced in 2021, Chryso and GCP Applied Technologies.

The challenge underlying all these transactions is the same: to make Saint-Gobain an ever stronger Group and to consolidate our performance in terms of growth - superior to that of our markets - and profitability. The trends such as climate change, the scarcity of natural resources, rapid urbanization in emerging countries, digitalization and changes in lifestyles require the widespread adoption of new construction methods, which are innovative, more frugal and respectful of the circular economy; they call for effective solutions for the renovation of buildings and the comfort of their users; and for the decarbonization of industry. These three vectors of structural growth are the development areas of Saint-Gobain, which has the broadest range of solutions on the market and an unrivalled positioning.

Because our strategy is implemented in an integrated manner, our operational performance systematically takes into account environmental, social and governance criteria. We are resolutely deploying our CSR strategy, which is at the heart of our development model. The Group has an ambitious CO2 roadmap for 2030; details of the reduction of our direct and indirect emissions, contained in this roadmap, have been validated by the SBTi (Science-Based Targets initiative). Minimizing our footprint and maximizing the positive impact of our solutions are the two aspects of Saint-Gobain's

to their teams and customers. This new multi-local organization allows the Group to develop an offering of integrated solutions and systems that enhances the full scope of its range of activities in each country. Saint-Gobain

Saint-Gobain is able to provide answers to complex market issues.

is thus able to provide solutions to complex market issues, driven by requirements for both performance and contribution to sustainable development. Positioned by country as close as possible to its customers, the Group anticipates their expectations by combining its expertise, developing new products and services, implementing all its innovation know-how and exploiting the wealth of data it generates throughout the value chain.

The second major change concerns the optimization of our business profile, through the disposal of the least performing assets, and the acquisition of high-growth and profitable companies, perfectly aligned with our strategy. After the successful acquisition of Continental Building Products

day-to-day actions. We have been included in the "Climate Change A List" established by CDP. Emissions avoided thanks to the environmental performance of the solutions sold by the Group in one year are 40 times larger than its current carbon footprint. In addition, thanks to the attractiveness of the Saint-Gobain brand as an employer, for the 7th consecutive year we have been recognized as a "Top Employer Global", a distinction that reflects the exceptional level

of commitment of our employees around the world. We can be proud of that, and I would like to congratulate and thank them.

In this context, and excluding major impacts of the geopolitical situation, I am confident in our ability to continue to progress in 2022, by achieving another year of growth, both financial and extra-financial, thanks to our very good positioning on markets which are structurally buoyant over the long-term.