#1Analyst - Investor meeting London August 1, 2005 m SUPERO flexolano TO DAHL raab karcher baustoffe POINT.P Matériaux de Construction SAINT-GOBAIN#2A First-half 2005 results B BPB plc mmmm SAINT-GOBAIN#3First-half 2005 results 1 First-half 2005 highlights 2 First-half 2005 results 3 Operating performance in first-half 2005 4 Outlook and targets for second-half 2005 mmmm SAINT-GOBAIN#41 First-half 2005 highlights mmmm SAINT-GOBAIN#5Saint-Gobain in H1 2005: key figures Change Change H1-2005/ €m H1-2005/ H1-2004 H1-2004 at constant exchange rates* Net sales 16,877 +7.0% +7.4% Operating 1,372 +4.6% +4.9% income Business income 1,268 +10.5% +10.5% Net income, 642 +10.9% excluding capital gains Net income 632 +13.9% * average exchange rates for H1-2004 mmmm SAINT-GOBAIN#6H1-2005: A difficult start followed by a vigorous second quarter > Organic growth*: 2.0% at end-June 2005 * -0.7% 4.1% 2.0% Q1-2005/ Q1-2004 Q2-2005/ Q2-2004 H1-2005/ H1-2004 on a like-for-like basis mmmm SAINT-GOBAIN#7H1-2005: A buoyant economic climate despite a harder-than-expected first quarter Rising energy costs Europe: > Stable manufacturing markets > Business in residential construction markets remained buoyant in France, Scandinavia, Spain and Portugal US: > Satisfactory industrial growth > Strong household demand (consumption and housing) Emerging countries and Asia: > Robust growth in the Group's main markets > Adverse impact of bad weather on first-quarter 2005 results in Eastern Europe mmmm SAINT-GOBAIN#8Operations launched since start-2005 > Further acquisitions: around 30 transactions bringing onboard more than €1bn in full-year sales > Expansion in Asia and emerging countries Various capital investments in Russia, Eastern Europe and China Acquisition of a controlling interest in Hankuk Glass Industries (Korea) > Disposals: concrete products (Stradal), glass bricks, Ibiden JV mmmm SAINT-GOBAIN#92 First-half 2005 results mmmm SAINT-GOBAIN#102. First-half 2005 results A. Group B. Update on asbestos-related claims in the United States mmmm SAINT-GOBAIN#11Saint-Gobain: Key H1 figures (Єm) H1-2004 TH1-2005 % Change Net sales 15,768 16,877 +7.0% Operating income 1,312 1,372 +4.6% Non-operating costs * (133) (108) -18.8% Other business income and expenses (31) 4 n.m. Business income * 1,148 1,268 +10.5% Interest and other financial charges, net (261) (266) +1.9% Income taxes (316) (359) +13.6% Minority interests (19) (16) -15.8% Net income * 555 632 +13.9% Net income, excl. capital gains * 579 642 +10.9% Cash flow, excl. taxes on capital gains * 1,252 1,360 +8.6% Capital expenditure Net debt *Including pre-tax asbestos-related charge of €54m in H1-05 (€50m in H1-04) 554 598 +7.9% 7,431 7,463 +0.4% mmmm SAINT-GOBAIN#12Net sales (€bn) 15.8 +5.4% -0.4 % +2.4% +2.0% on a like-for-like basis - 0.4 % 16.9 H1-2004 Structure Volumes Prices Currency sales H1-2005 sales . Strong increase in prices • Significant contribution from acquisitions mmmm SAINT-GOBAIN +7.0%#13Sales price trends % annual change on a comparable structure basis Group composite index Current prices in local currencies +0.8% 2003/2002 +1.7% 2004/2003 +2.4% H1-05/H1-04 Continuing strong upward trend in sales prices mmmm SAINT-GOBAIN#14■ Volume trends % annual change on a comparable structure basis Group composite index +1.7% +2.9% H1-2005/ H1-2004 2003/2002 2004/2003 -0.4% Recovery in sales volumes during the second quarter mmmm SAINT-GOBAIN#15* Operating income (in €m) +4.6%* 1,372* 1,312* 8.3% Operating income 10.5% % of sales 4.8% H1-2004 +4.9% * at constant exchange rates 8.1% Total Group 10.4% Excl. Distribution 4.9% Distribution H1-2005 Including costs relating to the Group Savings Plan and stock options (€23m in H1-04, €26m in H1-05) mmmm SAINT-GOBAIN#16Interest and other financial charges (in €m) +1.9% 261 266 H1-2004 H1-2005 mmmm SAINT-GOBAIN#17Net income (in €m) * 555* +13.9% 632* H1-04 H1-05 Net income, excl. capital gains 579* +10.9% 642* H1-04 H1-05 Strong growth in net income Including pre-tax asbestos-related charge of €54m in H1-05 (€50m in H1-04) mmmm SAINT-GOBAIN#18Net debt and equity (in €m) ■Net debt* ☐ Equity Interest cover Net-debt-to-cash-flow (12m) Net debt/equity 7.4 10.8 10.9 6.2 7.5 12 '06/30/2004 12/31/2004 06/30/2005 5.0 5.1 5.2 37% 42.4% 36.6% 69% 57% 62% mmmm SAINT-GOBAIN#19Operating working capital (in Єm and number of days) 5,360 In €m □ Number of days 65 d 5,625 5,336 60 d 60 d * French GAAP ** IFRS 06/30/03* 06/30/04* 06/30/05** Continuing tight rein on working capital mmmm SAINT-GOBAIN#20Cash flow and capital expenditure In Єm (excl. taxes on capital gains) 1,252* 554 €698m* 1,360* 598 €762m* 7.9% 3.5% 8.1% 3.5% (% of sales) H1 2004 ☐ Cash flow H1 2005 ■Capital expenditure • Ongoing high levels of cash flow • Continued capital spending in emerging countries Including pre-tax asbestos-related charge of * €54m in H1-05 (€50m in H1-04) mmmm SAINT-GOBAIN#21Investments and disposals > Bolt-on acquisitions Building Distribution ☐ High-Performance Materials > Development in emerging countries (historic businesses) > Other investments > Disposals Total €374m €337m €37m €174m €15m €563m €95m mmmm SAINT-GOBAIN#222. First-half 2005 results A. Group B. Update on asbestos-related claims in the United States mmmm SAINT-GOBAIN#23Update on asbestos-related claims against CertainTeed in the United States Λ First-half 2005 litigation trends Current status of US asbestos legislation mmmm SAINT-GOBAIN#24Asbestos-related litigation against CertainTeed in the US First-half 2005 litigation trends > Number of new claims continues to level out Slight drop in pending claims > Average cost of settlements in line with prior ranges > Additional charge of €54 million to the provision in H1-2005 mmmm SAINT-GOBAIN 4#25Asbestos-related litigation against CertainTeed in the US New claims filed - First-half 2005 2003 2004 Q1 2005* Q2 2005* Total * estimated 62,000 18,000 6,000** 4,000 ** including 3,000 mass claims in KY 62,000 New claims (last 12 months) 23,000 19,000 18,000 | (**) '12/31/03 6/30/2004 12/31/2004 6/30/2005 > Claims fell or leveled out in virtually all States > Mississippi: only 300 new claims filed in H1-2005 mmmm SAINT-GOBAIN 5#26Asbestos-related litigation against CertainTeed in the US Claims resolved - First-half 2005 2003 2004 Q1 2005* Q2 2005* Resolved 54,000 Pending 108,000 20,000 106,000 102,000 7,000** 6,000 100,000 ** after 3,000 claims transferred to an "inactive docket" > The number of claims resolved was slightly higher than the number of new claims → pending claims - 100,000 2 Last 12 months 06/30/04 12/31/04 03/31/05* 06/30/05* Average cost $2,700 $2,900 $3,000 › Average settlement cost currently under US$ 3,000 $2,500 * estimated mmmm SAINT-GOBAIN 6#27Asbestos-related litigation against CertainTeed in the US Pending claims New claims/Resolved claims 140,000 New claims 120,000 Resolved claims --Pending claims 100,000 80,000 90,000 80,000 70,000 60,000 50,000 60,000 40,000 30,000 40,000 20,000 20,000 10,000 0 0 2000 2001 2002 12m, end June 2003 2003 12m, end June 2004 2004 12m, end June 2005 Ave. cost per claim $2,800 $1,950 $2,100 $2,100 $2,700 $2,900 $2,500 mmmm SAINT-GOBAIN#28Asbestos-related litigation against CertainTeed in the US Legislation reform update Federal reforms State reforms > May 26, 2005: bipartisan vote the Senate Judiciary by Committee on the Asbestos Trust Fund bill Since then, much debate between the bill's advocates and opponents > Uncertainty surrounding the date of the Senate plenary vote (not before Fall 2005) > Favorable developments in several States ■ Legislation (TX, FL, GA, OH) Judicial decisions (NY, MS, IL) > Medical/restrictions criteria (jurisdiction, proof of medical impairment, exposure to products, etc.) > Potential favorable long-term impact on pending and new claims in these States (see Mississippi) mmmm SAINT-GOBAIN#293 Operating performance in first-half 2005 mmmm SAINT-GOBAIN#30Organic growth at end-June 2005 % change in H1-2005/H1-2004 net sales on a like-for-like basis +2.3% +1.4% Group average: +2.0% Building Distribution HPM CPA* +3.3% * CPA = Ceramics, Plastics and Abrasives ** = CP Construction Products +0.9% +0.8% +3.9% Flat Glass Packaging CP** Building Materials +6.4% Insulation +6.1% Pipe -3.9% Reinforcements -4.2% mmmm SAINT-GOBAIN#31Flat Glass Net sales (in €m) Operating income (in Єm and as % of sales) +4.2% 2,329 2,236 240 -2.9% 233 10.7% 10.0% H1-2004 H1-2005 H1-2004 H1-2005 +0.8% on a like-for-like basis mmmm SAINT-GOBAIN#32Packaging Net sales (in €m) Operating income (in Єm and as % of sales) 1,978 -0.1% 246 1,977 -10.2% 221 12.4% 11.2% H1-2004 H1-2005 H1-2004 H1-2005 +0.9% on a like-for-ilke basis mmmm SAINT-GOBAIN#33Construction Products Net sales (in €m) +4.1% 3,096 2,973 Operating income (in Єm and as % of sales) 267 +6.0% 283 Building 1,361 7.5% 7.6% 1,293 Materials 11.4% 11.6% Insulation 964 1,045 726 700 8.3% 8.4% Pipe H1-2004 H1-2005 H1-2004 +3.9% on a like-for-like basis 9.0% H1-2005 9.1% mmmm SAINT-GOBAIN#34High-Performance Materials Net sales (in €m) Operating income (in Єm and as % of sales) +1.3% 2,383 2,415 271 +8.8% 249 Ceram. 11.8% 13.4% Plastics 1,752 1,788 Abrasives Reinfor. 644 638 6.5% 4.9% H1-2004 H1-2005 H1-2004 H1-2005 +1.4% on a like-for-like basis 10.4% mmmm SAINT-GOBAIN 11.2%#35Building Distribution Net sales (in €m) Operating income (in Єm and as % of sales) +13.7% 7,364 363 +16.7% 6,474 311 4.8% 4.9% H1-2004 H1-2005 H1-2004 H1-2005 +2.3% on a like-for-like basis mmmm SAINT-GOBAIN#36Cash flow by sector (in Єm and as % of sales) H1-04 TH1-05 274 258 254 256 260 263 258 240 233 214 3.5% 10.5% 11.4% 13.3% 8.9% 11.2% 3.3% 10.1% 11.8% 8.7% Distrib. HPM Flat Glass Packaging mmmm SAINT-GOBAIN CP#37Capital expenditure by sector (in Єm and as % of sales) H1-04 TH1-05 164 107 131 106 90 148 101 89 106 104 1.8% 4.4% 7.0% 5.1% 3.6% 1.7% 3.8% 6.6% 4.5% 3.4% Distrib. HPM Flat Glass Packaging mmmm SAINT-GOBAIN CP#38Cash flow and capital expenditure (in Єm and as % of sales) Capital expenditure 258 254 260 233 96 127 148 Free cash flow 274 170 144 164 131 106 104 1.8% 4.4% 7.0% 89 4.5% 3.4% Distribution HPM Flat Glass Free cash flow = Cash flow - Capital expenditure *CP Construction Products Packaging CP mmmm SAINT-GOBAIN#39Organic growth by geographic area (end-June 2005) % change in like-for-like sales: H1-2005/H1-2004 +3.6% Group average: +2.0% -1.3% +6.0% +5.1% France Other western European countries North America Emerging countries and Asia mmmm SAINT-GOBAIN#40Operating income by geographic area (in €m and as % of sales) TH1-04 H1-05 490 440 436 417 259 269 200 173 7.6% 6.9% 9.4% 12.0% 7.6% 6.6% 9.1% 8.7% France other western North America Emerging European countries and Asia countries mmmm SAINT-GOBAIN#41Capital expenditure by geographic area (in Єm and as a % of sales) TH1-04 H1-05 115 125 183 184 106 93 150 196 2.1% 2.8% 3.7% 9.9% 2.6% 3.2% 9.0% 2.1% France other western North America Emerging European countries and Asia countries mmmm SAINT-GOBAIN#42Cash flow and capex by geographic area (in Єm and as % of sales) 480 Capital expenditure 448 Free cash flow 355 264 224 203 7 131 125 2.1% 184 2.6% 196 93 3.2% 9.9% France other western North America European countries Emerging countries and Asia Free cash flow = Cash flow - Capital expenditure mmmm SAINT-GOBAIN#43Developments in the Building Distribution Sector in H1-2005 > 24 acquisitions bringing onboard €540m in full-year sales > 59 new stores opened, including our first store in Shanghai, China ("La Maison") > Three new geographic leadership positions: ▪ WAV-A-Keramika: Sanitas Troesch: Optimera: no. 1 in Slovakia/ranked 2 in Czech Republic no. 1 in Switzerland (bathroom distribution) no. 1 in Norway (general distribution) 2005 sales > €15bn mmmm SAINT-GOBAIN#44Developments in the HPM Sector in H1-2005 > Strong expansion in Asia and emerging countries: - Five new plants in Asia and Eastern Europe - First-half net sales: €629m (up 15.8% on H1-2004) > Large-scale projects underway to boost organic growth: Diesel vehicle particulate filter: Construction of the first two lines in Rodental (Germany) Refractors for LCD glass: Installation of the world's largest isostatic press in Buckhannon (USA) Proppants: Upgrade in capacity at Fort Smith (USA) and acquisition of Guanghang Proppants (China) mmmm SAINT-GOBAIN#45Developments in historic businesses in emerging countries during H1-2005 > Capital expenditure up 36% > Flat Glass: - start-up of float-line in China in April 2005 - float-line in India (Sept. 2005) > CP: - float-line in Romania - Insulation: Russia Romania . China - Building Materials (mortars): Brazil Thailand Turkey mmmm SAINT-GOBAIN#46Summary of first-half 2005 Hike in sales prices offset rising raw materials and energy costs > Upturn in sales volumes during Q2 > Growth remains driven by: - High-Performance Materials - Building Distribution Operating income up 8.8% Operating income up 16.7% > Solid balance sheet structure mmmm SAINT-GOBAIN#474 Outlook and targets A. Outlook for second-half 2005 B. Targets for FY 2005 mmmm SAINT-GOBAIN#48Outlook for second-half 2005 Macro-economic environment Europe: > Capital spending and production set to remain buoyant Continued boom in the construction market in France, Spain and Scandinavia. Slight decline in the UK. > German economy still hit by sluggish construction market and flat domestic demand mmmm SAINT-GOBAIN#49Outlook for second-half 2005 Macro-economic environment US: > Continued satisfactory levels of industrial activity > Residential construction market expected to remain buoyant until year-end > Sustained household consumption, despite rising energy costs Emerging countries: Vigorous growth expected across all sectors in Asia and Eastern Europe mmmm SAINT-GOBAIN#50Outlook for second-half 2005 Saint-Gobain's businesses HPM and Building Distribution Sectors to continue expansion > Ongoing robust performance of High-Performance Materials Strong growth in Building Distribution Other Sectors: well-positioned overall > Further progress in all businesses in the Construction Products Sector > Prices set to level out in Flat Glass, bolstered by robust growth in emerging countries and the solid performance of the automotive industry Packaging hit by the tension in certain markets and by energy costs in the US mmmm SAINT-GOBAIN#51Continuation of the upturn observed in Q2 > Full-year effect of acquisitions in the Building Distribution Sector > Overall, the European and US housing markets are set to hold firm > Favorable price effects and productivity gains > Robust growth in emerging countries mmmm SAINT-GOBAIN#52Targets for FY 2005 Confirmation of 2005 target: 6% growth in operating income, at constant exchange rates*, thanks to a continuation of the favorable trends observed in Q2 > Sustained high levels of free cash flow * I average exchange rates for 2004 mmmm SAINT-GOBAIN#53A First-half 2005 results B BPB plc mmmm SAINT-GOBAIN#54Why have we approached BPB? SAINT-GOBAIN#55Why have we approached BPB? The opportunity to create a leader in building interior solutions > Building interior solutions (partitions, ceilings, insulation,...), the core business of SG Insulation and BPB, presents attractive characteristics for Saint-Gobain : - Growth - High profitability and strong free cash flow generation - Multi-regional markets > A combination of BPB and SG Insulation would create a leader in this market mmmm SAINT-GOBAIN#56BPB : the leader in plasterboard BPB is a leading producer of plasterboard and related systems, and has a global footprint ●Leader in Western Europe Strong market positions in North America Strong presence in high-growth emerging markets (Central and Eastern Europe, Asia) 2005 sales: £2.3 billion (€3.4 billion), up 6.7% versus 2004 Operating profit of £308 million representing a 13.3% margin 2005 sales by region. N. America 22% C. and E. Europe 15% Emerging Markets 6% N. and W. Europe 25% S. Europe 32% 2005 sales by product Other construction materials 19% Plasters. 16% Plasterboard and accessories 65% Source: annual report Year to March 2005 mmmm SAINT-GOBAIN#57Strong complementarities with our 'Construction Products Sector' > We target the same client base (contractors, distributors, installers) > We offer complementary products > Our respective geographical locations can facilitate rapid expansion in emerging markets mmmm SAINT-GOBAIN#58Why are we considering sizeable acquisitions now? Saint-Gobain is now in a position to pursue a more aggressive acquisition strategy, thanks to: ллл A sound financial position > A more favourable evolution of the asbestos issue > Attractive interest rates environment A new stage in external growth mmmm SAINT-GOBAIN#59What next? > On 22 July, Saint Gobain made an approach to BPB to buy the company for 675p a share in cash > Our proposal was fully financed and subject to very limited due diligence. It was rejected by BPB. While we were surprised by their response and disappointed that the management of BPB did not wish to enter into discussions with us, our objective remains to agree a recommended deal with BPB > We have noted BPB's trading statement and are currently assessing the situation and continue to evaluate our options in respect of BPB > We will only do a deal at a price we believe adds value to our shareholders > We have identified other sizeable growth opportunities that are consistent with our new acquisition strategy mmmm SAINT-GOBAIN#60Analyst - Investor meeting London, August 1, 2005 m SUPERO flexolano TO DAHL raab karcher baustoffe POINT.P Matériaux de Construction SAINT-GOBAIN