#1Ո = @by Feldman_1, Getty image INVESTOR DAY MAY 17, 2017 SAINT-GOBAIN#2@by Feldman_1, Getty image AGENDA How has the Group changed since 2013? Is it time for a recovery in Saint-Gobain's end markets? Can Saint-Gobain grow faster than its markets? Is a more digitized world a threat or an opportunity? Is there more cost reduction potential beyond the existing savings plan? ▸ Will market recovery lead to operating leverage and free cash flow generation? Can Saint-Gobain create value through portfolio management? INVESTOR DAY / MAY 2017 SAINT-GOBAIN#3INVESTOR DAY / MAY 2017 2013-2017: A GROUP TRANSFORMED AND READY FOR GROWTH Pierre-André de Chalendar Chairman and Chief Executive Officer SAINT-GOBAIN#4On track to deliver most Investor Day 2013 targets 1 STRENGTHEN THE GROUP'S PROFILE Reduce capital intensity in developed countries Refocus industrial assets outside Western Europe 2 INCREASE FOCUS ON DIFFERENTIATION Strengthen our innovation pipeline Enhance the Group's online offer Increase our brand awareness Complete the disposal of Verallia Accelerate value-enhancing acquisitions Focus Building Distribution Sector on leadership positions INVESTOR DAY / MAY 2017 On track × Further progress required 3 WORK TOWARDS MANAGEMENT'S PRIORITIES Push further our cost savings programs Become a CSR reference Target attractive returns for shareholders Maintain a solid financial structure SAINT-GOBAIN#52013-2017: a Group transformed and ready for growth ▸ A renewed management team with broad international experience ▸ A coherent set of businesses aligned with a clear mission statement ▸ Robust positions in emerging countries ▸ A lighter and more disciplined Saint-Gobain Steady improvement of value creation ratios ▸ Progress on all CSR dimensions INVESTOR DAY / MAY 2017 5 SAINT-GOBAIN#6A renewed management team with broad international experience 28 10 24 18 18 3 15 1 28 27 PIERRE-ANDRÉ DE CHALENDAR CLAUDE IMAUVEN COO Chairman and CEO BENOÎT BAZIN Construction Products PATRICK DUPIN Flat Glass LAURENT GUILLOT High-Performance TOM KINISKY North America KARE O. MALO Building Distribution CLAIRE PEDINI Human Resources Materials (34 (12) 5 5 22 3 12 3 (32) 12 12 JEAN-FRANÇOIS PHÉLIZON GUILLAUME TEXIER Finance Internal Audit and Internal Control Non Saint-Gobain business experience North America Asia & Emerging countries INVESTOR DAY / MAY 2017 ANTOINE VIGNIAL FABRICE DIDIER Corporate Secretary, Marketing CSR DELPHINE GÉNY-STEPHANN BENOÎT D'IRIBARNE Germany, Austria DIDIER ROUX R&D and Innovation Corporate Planning & and Benelux - Strategy Industrial Excellence France Europe (excl. France) Corporate Building Distribution Construction Products Innovative Materials 1 Seniority at Saint-Gobain 1 Seniority since taking position SAINT-GOBAIN#7A coherent set of businesses, with strengths and opportunities in each Sector... Breadth of clients Depth of materials and solutions' selection Consolidation Renovation INVESTOR DAY / MAY 2017 INNOVATIVE MATERIALS SAINT-GOBAIN Technology Innovation Co development BUILDING DISTRIBUTION CONSTRUCTION PRODUCTS Strength Growth opportunities Leading positions and brands Emerging countries Energy savings Efficient materials SAINT-GOBAIN 7#8... and synergies creating a unique offer adapted to customers' needs SERVICE INNOVATION INNOVATIVE MATERIALS SAINT-GOBAIN BUILDING DISTRIBUTION CONSTRUCTION PRODUCTS INVESTOR DAY / MAY 2017 HIGH-EFFICIENCY MANUFACTURING Mission statement Saint-Gobain helps to create great living places and improve daily life by combining comfort and sustainability ▸ Customers request a more complex combination of innovation, products and services: "solutions" This trend is accelerating as end users gain influence in a digital world ‣ Saint-Gobain is uniquely positioned to answer this request SAINT-GOBAIN#9Customer requirements Examples of our ability to answer our customers' multi-criteria requirements BEARINGS FOR AUTO ACOUSTICAL SOLUTIONS PREFAB Customer Unfulfilled needs OEM*, part-maker Home or business owner Homebuilder, contractor Vibration control, durability Sound comfort Productivity innovation + ++ + ++ + ++ service + ++ high efficiency manufacturing + ++ + + ++ + • ++ ++ + • ++ INVESTOR DAY / MAY 2017 * Original Equipment Manufacturer SAINT-GOBAIN#10From a product-centric to a customer-centric organization FROM ΤΟ INVESTOR DAY / MAY 2017 Markets Markets Technologies Technologies LARGE COMMERCIAL BUILDINGS ADFORS ISOver SAINT-GOBAIN vetrotech SAINT-GOBAIN SAINT-GOBAIN GLASS GLASSOLUTIONS SageGlass SAINT-GOBAIN weber PAM SAINT-GOBAIN SAINT-GOBAIN MARINE Marine ISOver vetrotech /OPTIMERA/ SAINT-GOBAIN GLASSOLUTIONS SAINT-GOBAIN weber SAINT-GOBAIN Placo SAINT-GOBAIN VANGIN SAINT-GOBAIN 10#11Robust positions in emerging countries INVESTOR DAY / MAY 2017 OPERATING PROFIT IN ASIA AND EMERGING COUNTRIES (Єm) 551 2012 901 2016 BRICS Asia & other emerging countries INDUSTRIAL ASSETS OUTSIDE WESTERN EUROPE Innovative Materials + Construction Products at constant exchange rate 57% 66% 11 62% 2012 2016 2018 target SAINT-GOBAIN#12Example: the journey to build a leader in India (1) WW 19% >50% Flat Glass Abrasives Plasterboards Refractories Sales CAGR since 1996 BADDI, HP JIND BHIWADI DELHI JAIPUR Spontaneous Saint-Gobain brand awareness AHMEDABAD BARODA ‣ Saint-Gobain contributed to shape the Indian market by: Focusing on local market with 80% of sales dedicated to India KANPUR 12 NAGPUR KOLKATA JAMSHEDPUR WADA MUMBAI PUNE HYDERABAD Sales office ◉ Developing the glass HAVP* market TIRUPATI BANGALORE Construction Products Increasing plasterboard market penetration CHENNAI Glass ☐ Creating an exclusive multi-channel distribution network in Abrasives through exclusive partnerships and product innovation PALAKKAD COIMBATORE COCHIN Abrasives Ceramics & Plastics INVESTOR DAY / MAY 2017 * High Added Value Product SAINT-GOBAIN#13A lighter Saint-Gobain Capital intensity in developed countries 34% 33% 27%-29% 30% ► Downstream investments in industrial activities 13 2008* 2012* 2016 2018 target INVESTOR DAY / MAY 2017 ▸ Optimized use of capacity Lower capital intensity in Flat Glass *including Verallia SAINT-GOBAIN#14A disciplined Saint-Gobain Cost reductions in excess of €4.2bn between 2008 and 2016 (€bn) Active operating WCR management number of days, at the end of December* 2008-12 2.6 2013-16 INVESTOR DAY / MAY 2017 1.6 38d -10 days equivalent to -€1.1bn 28d 2008 2009 2010 2011 2012 2013 2014 2015 2016 *including Verallia until 2014 h SAINT-GOBAIN 14#15Steady improvement of value creation ratios +1.5pt ROCE (pre-tax) 2012-2016 x2 FCF (€bn) 2012 - 2016 8.6% 10.1% 0.6 1.3 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 INVESTOR DAY / MAY 2017 SAINT-GOBAIN 15#16Progress on all CSR dimensions DIVERSITY CIRCULAR ECONOMY INVESTOR DAY / MAY 2017 BUSINESS PRACTICES & ETHICS MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM EXECUTIVES FOLLOWING THE COMPLIANCE PROGRAM within the year following their integration (%) 87 THOUSANDS OF INDIRECT JOBS created in employment areas 460 550 HEALTH & SAFETY 33 2012 2016 2014 2016 ▸ #1 in Europe #2 Workdwide FOREIGN NATIONALS within top management (%) LOCAL VALUE CREATION CLIMATE 50 43 2012 2016 FREQUENCY OF LOST TIME AND NON-LOST TIME ACCIDENTS (TF2*) 7.6 3.5 2012 2016 number of lost time and non-lost time accidents per million of work hours SAINT-GOBAIN 16#17A strong governance with significant evolutions between 2012 and 2017 DIVERSITY CIRCULAR ECONOMY INVESTOR DAY / MAY 2017 BUSINESS PRACTICES & ETHICS MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM CLIMATE HEALTH & SAFETY LOCAL VALUE CREATION ▸ New committee: strategy and CSR ▸ Appointment of a lead independent director (Administrateur Référent)* > # Board members ► Independents 16 14 * 2012 44% 64% * 2017 2012 2017 ► Gender diversity 25% 42% 2012 2017* ▸ Non-French citizenship 19% 27% 2012 2017* open for vote at 2017 Annual Shareholders' Meeting SAINT-GOBAIN 17#18Saint-Gobain, engaged for sustainable growth... DIVERSITY CIRCULAR ECONOMY INVESTOR DAY / MAY 2017 BUSINESS PRACTICES & ETHICS MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM CLIMATE HEALTH & SAFETY ENERGY, AIR [] EMISSIONS & CLIMATE CHANGE CO2 emissions* 100 93 80 2010 2016 2025 Water discharge* WATER WITHDRAWAL & DISCHARGE 100 68 20 2010 2016 2025 LOCAL VALUE CREATION Non-recovered waste* RAW MATERIALS & 100 92 I WASTE 50 2010 2016 2025 558 sites representing ~95% of Saint-Gobain's environmental impact, (2010=100) SAINT-GOBAIN 18#19.. and acting against climate change Greenhouse gases emitted by Saint-Gobain in a given year x90 INVESTOR DAY / MAY 2017 Emissions avoided with our insulation solutions produced and sold in the same year AПA AN INTERNAL CARBON PRICE INTRODUCED IN EARLY 2016 Step up the mobilization of our Businesses ▸ Encourage disruptive innovation SAINT-GOBAIN 19#20INVESTOR DAY / MAY 2017 A MACROECONOMIC ENVIRONMENT TURNING MORE FAVORABLE Guillaume Texier Chief Financial Officer SAINT-GOBAIN 20#21Construction recovery is now underway in Western Europe Construction markets 2007 = 100 100 95 90 90 85 80 55 75 70 70 -United States 21 221 Source: Euroconstruct, IHS SAINT-GOBAIN 65 55 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 INVESTOR DAY / MAY 2017 Western Europe#22France: considerable recovery potential Construction market 2007 = 100 110 100 90 80 10 70 60 50 50 1990 1995 2000 2005 2010 2015 -1990-2007 -2007-2016 INVESTOR DAY / MAY 2017 +24% 22 Source: Euroconstruct SAINT-GOBAIN#23France: new construction has restarted Housing permits and housing starts Thousands of dwellings, 2000-2016 650 600 550 500 450 400 350 300 2000 2002 2004 2006 2008 2010 Housing permits Housing starts Source: INSEE INVESTOR DAY / MAY 2017 2012 2014 2016 Concrete blocks H2-2016 Q1-2017 yoy market change +10% trend Concrete beams +3% Roofing Insulation ~0% Partitions SAINT-GOBAIN 23 23#24France: encouraging advanced indicators, limited by employment? CONSTRUCTION COMPANIES ADVANCED INDICATORS INVESTOR DAY / MAY 2017 66 86 +20 days 76 Order backlog in working days Q1-15 Q1-16 Q1-17 43 42 April 15 April 16 April 17 -0.1 -35 Balance of -19 opinion on employment in 3 months 24 30 8 % suffering 7 from lack of demand April 15 April 16 April 17 16 April 15 April 16 April 17 % suffering from labor shortage Source: DG ECFIN, CAPEB SAINT-GOBAIN#25Germany & Nordics: encouraging outlook GERMANY Housing permits and housing completions Thousands of dwellings, 1996-2016 550 450 350 Flat permits 250 NORDICS Construction markets Volumes, 2017-2019 CAGR 5% 4% 4% 4% 4% 3% 2% 2% 2% 2% 150 Single family permits 50 0% 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Norway Sweden Finland Flat completions ■Residential ■Non-residential - Single family completions Source: Statistik der Baufertigstellungen, Euroconstruct INVESTOR DAY / MAY 2017 Source: Euroconstruct 1% Denmark ■Infrastructures SAINT-GOBAIN 25 25#26United Kingdom: construction sector resisting well CONSTRUCTION MARKETS SHOW NO SIGN OF WEAKNESS YET OUTSIDE LONDON Residential construction permits 2012 = 100 140 POSITIVE SHORT-TERM INDICATORS CONFIDENCE 52.5 HOUSING PRICES +3.8% 120 100 00 80 60 2012 2013 Average construction PMI in 2017 yoy % change 26 GOVERNMENT COMMITTING SUPPORT RESIDENTIAL INFRASTRUCTURES 2014 2015 2016 England ⚫London Shire* Housing white paper Help-to-buy Major public projects Investment plan *England excl. metropolitan areas Source: UK DGLC INVESTOR DAY / MAY 2017 SAINT-GOBAIN#27United States: potential for further improvement in new residential Housing starts Thousands of dwellings, 1964-2016 2 500 2 000 1 500 1.000 500 0 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 Long-term average 1964-2016 Flats ▸ Single family INVESTOR DAY / MAY 2017 SAINT-GOBAIN 27#28Our largest emerging countries demonstrate resilience... Construction output Positive Negative INVESTOR DAY / MAY 2017 TOTAL* Brazil China Czech Republic India Korea 2012 2013 2014 2015 2016 Mexico Poland Thailand *Construction output weighted by Saint-Gobain's 2016 sales SAINT-GOBAIN 28#29. and strong underlying dynamics DYNAMIC URBANIZATION ON ALL CONTINENTS Urbanization rate 2015 Urban population 2015-2025 India 32% 420m Sub-Saharan Africa Brazil Source: UN 48% 360m 84% 175m INVESTOR DAY / MAY 2017 +105m +163m +16m 525m 523m 191m RAPID RISE IN MIDDLE CLASSES, CONSUMERS OF OUR PRODUCTS Consumption per capita Mortars (€) Coated glass (sqm) Plasterboard (sqm) Insulation (cu. m) GDP per capita SAINT-GOBAIN 29 29#30Some of our most important industrial markets benefit from strong momentum global markets 2012-2016 CAGR AUTOMOTIVE +3% + specific long-term trends ► Electric vehicle ► Comfort AEROSPACE +5% + CO2 emissions ▸ Connectivity ► Single use HEALTHCARE +4%* + ‣ Tailor-made INVESTOR DAY / MAY 2017 * 2012-2015, OECD countries Source: IHS, Airbus, Boeing, OECD SAINT-GOBAIN 30 30#31ST 대각 6591794 m GROW FASTER THAN OUR UNDERLYING MARKETS Thomas Kinisky North America Benoît Bazin Construction Products Laurent Guillot Innovative Materials – High-Performance Materials Patrick Dupin Innovative Materials - Flat Glass INVESTOR DAY / MAY 2017 h SAINT-GOBAIN 31#32Long-term trends are positive for our businesses FLAT GLASS Autonomous cars Air transport growth 3D printing HIGH-PERFORMANCE MATERIALS INVESTOR DAY / MAY 2017 Recycling Middle classes in emerging countries Industry 4.0 Resource scarcity Climate change Healthtech 00- Ageing population CONSTRUCTION PRODUCTS Water stress Healthy housing BUILDING DISTRIBUTION Urbanization m-commerce SAINT-GOBAIN 32 32#33Critical needs of our core customer segments MULTI-COMFORT for the building end-user (homeowner, commercial building occupant) PRODUCTIVITY for the professional builder (contractor, homebuilder) TAILOR-MADE INNOVATION for the industrial company INVESTOR DAY / MAY 2017 SAINT-GOBAIN 33#34Comfort in living spaces: hugely underestimated EXTERIOR VIEW ACOUSTIC LIGHT VENTILATION Z Mental capacity and memory improved by 10-25% Sound level recommended to prevent sleep problems <35db Employee productivity improved by 18% Productivity improved as a result of better ventilation by 11% INVESTOR DAY / MAY 2017 SAINT-GOBAIN 34 34#35Saint-Gobain's unique comfort offer INVESTOR DAY / MAY 2017 At work At home In all living places SageGlass my comfort by Saint-Gobain Solargard automotive sunroof FRS Ecophon ceiling Habito SAINT-GOBAIN 35 35#36Towards a productivity revolution in construction Hourly productivity per branch in France 1994 = 100 +95% +27% Hourly productivity per branch in the UK 1994 = 100 -9% 1994 1998 2002 2006 2010 2014 1994 1998 2002 2006 2010 2014 Source: INSEE ⚫Construction INVESTOR DAY / MAY 2017 Services Industry Source: ONS Construction Services +57% 36 +29% +15% Industry SAINT-GOBAIN#37Saint-Gobain's solutions to enhance efficiency Prefab Light-weight materials Precut weber.col flex confort Celle but confect weber Bathroom cost -50% On-site work duration -99% > -40% weight ‣ -20% drying time > > -66% waste generation ‣ -20% laying time & arduousness INVESTOR DAY / MAY 2017 SAINT-GOBAIN 37 37#38Industry: a growing need for tailor-made innovation THU Refining & petrochemical Zero emission mobility 888 Biopharmaceutical manufacturing Unique process optimum CO₂ emission restrictions Sterilization 38 Diversity of reactions ▸ Catalytic support Reduced fuel capacity ▸ Weight reduction solutions (thinner glass, plastic parts) Small batch ▸ Single-use INVESTOR DAY / MAY 2017 SAINT-GOBAIN#39Saint-Gobain's open innovation approach in industrial markets CO-DEVELOPMENT, A SOURCE OF OUR TECHNOLOGICAL LEADERSHIP... High-Performance Materials sales include: ~60% of customized products ▸ of which ~2/3 co-developed 2016 R&D spend: ~€440m ► Top 100 Global Innovators for 6 consecutive years REINFORCED BY FABLABS, PILOT LINES AND SHOWROOMS DEPLOYMENT 米 INVESTOR DAY / MAY 2017 5 existing fablabs 2 additional planned in 2017 2018 Design thinking, embedded researchers at Green Town Labs, rapid prototyping, virtual and collaborative design technologies SAINT-GOBAIN 39#40INVESTOR DAY / MAY 2017 Gyproc XONIO 183 dig Mayday was 201 SOVIA ad pay 201 do Growth acceleration in Construction Products COMA Benoît Bazin Senior Vice-President in charge of the Construction Products Sector SAINT-GOBAIN 40#41Construction Products Sector 田 2016 sales: €11.9bn 13-16 CAGR*: +1.6% 2016 OP margin: 9.3% Industrial presence in 62 countries Sales presence in 74 countries GYPSUM INSULATION MORTARS EXTERIOR PRODUCTS PIPE 8 to 10 new plants per year 41 END-MARKETS 2016 14% Other industries 43% Renovation INVESTOR DAY / MAY 2017 43% New construction SALES SPLIT 2016 27% Asia & emerging countries 12% France O 28% North America 33% Other Western Europe *organic sales growth SAINT-GOBAIN#42How can Construction Products outperform its markets? Unlock unique customer-centric assets and accelerate growth 1 A market-driven organization supported by a unique portfolio of brands and strong customer intimacy 2 Setting the tone in innovation and offering integrated solutions to capture full potential from attractive building markets 3 Expanding further in emerging countries and strengthening our leading local positions INVESTOR DAY / MAY 2017 SAINT-GOBAIN 42#43Unlock unique customer-centric assets A market-driven organization Regional organization: P&L and Sales & Marketing across brands to capture local growth and leverage local synergies Acceleration of Key Account Management Coverage and joint commercial excellence programs for more efficiency ‣ Common voice for advocacy in regulation ISOver SAINT-GOBAIN PAM SAINT-GOBAIN and trends INVESTOR DAY / MAY 2017 CertainTeed SAINT-GOBAIN weber SAINT-GOBAIN SAINT-GOBAIN Ecophon SAINT-GOBAIN Gyproc SAINT-GOBAIN SAINT-GOBAIN 43#44Unlock unique customer-centric assets Customer intimacy at each step of the value chain Artex BULDI FAIT POET Building Material Trade Oscar Isover Germany 2017 Placo My Placo SAINT-GOBAIN INVESTOR DAY / MAY 2017 MyComfort BY SAINT-GOBAIN REEN BUIL DING CO DIYers End- customer Building LEED USGBC HOE BREEAM Builders merchants SAINT-GOBAIN owners Specifiers & architects Installers Prefab General contractors weber weber weber weber BIM studio ‣ Preferred supplier of our trade customers and installers with more services and digital >▸ Wide technical know-how for further prescription sales Development in new channels with broad portfolio SAINT-GOBAIN 44#45Accelerate growth Setting the tone in innovation COMPREHENSIVE PORTFOLIO ISOver Isonat ISOROC SOROC SOROC Centex PIR Thermal Sample HIGH-VALUE PRODUCTS Habito INVESTOR DAY / MAY 2017 SUSTAINABLE SOLUTIONS weber.set rapid plus E ECC SMART weber Made LESS CO EMISSION 20% ن اكسيد الكربور انبعاث اقل لثاني from recycled materials ECO SMART Lower carbon footprint SMARTPIPE ..die intelligente Lecküberwachung! SERVICES for service eber SAINT-GOBAIN 45#46Accelerate growth Capturing full potential from attractive building markets High-performance applications Ceiling #2 global player Flooring Installation services to all end-markets Facade Innovative systems INVESTOR DAY / MAY 2017 Glasro pie weber SAINT-GOBAIN ISOver SAINT-GOBAIN )) | Placo JOSI Acoustic partitions Rigips SAINT-GOBAIN PAM SAINT-GOBAIN Ventilation 46 Technical insulation Heat exchangers Soil & drain systems SAINT-GOBAIN#47Accelerate growth Expanding further in emerging countries TOTAL ~€635m INVESTOR DAY / MAY 2017 Acquisitions 2013-2016 ~50% Growth CAPEX 2013-2016 ~50% Plasterboard capacities in China, Russia, Brazil & Indonesia Insulation plant in Saudi Arabia 10 premix plants weber SAINT-GOBAIN Placo SAINT-GOBAIN Major 2017 projects Plasterboard plants construction in Vietnam & India; New premix & plasters plants in China, South East Asia, Middle East and Central America h SAINT-GOBAIN 47#48Accelerate growth Expanding further in emerging countries TOTAL ~€635m Acquisitions 2013-2016 ~50% Growth CAPEX 2013-2016 ~50% ISOROC Теплоизоляция минераловатная Ⓡ Russia, mineral wool E VĨNH TƯỜNG Vietnam, plasterboard and fibercement italcol the partner to build with. 4p LAFARGE PLACO MAROC DEMIT SSOLCROM Lodhio Gr FORTCOLA secole, cate Industries Lid E-MIX China P Hong Kong Malaysia Singapore Albania, premix JV in Morocco, gypsum plasters Slovenia, premix JV in Chile, premix Brazil, premix Tanzania, plasterboards South East Asia, premix INVESTOR DAY / MAY 2017 SAINT-GOBAIN 48#49Accelerate growth Strengthening our leading local positions 26 business clusters > €100m MATURE POSITIONS CONSOLIDATION NEW BUSINESS CLUSTERS ISOver British Gypsum weber SAINT-GOBAIN SAINT-GOBAIN Celotex SAINT-GOBAIN INVESTOR DAY / MAY 2017 . > €100m sales > 10% CAGR* RISING STARS Indonesia > 30% CAGR* 49 Argentina India Vietnam GOBAIN Qatar weber ISOver T-GOBAIN Placo eurocoustic Sonat SAINT-GO AIN CFD SAINT-GOBAIN PROTECTION INCENDIE PASSIVE STRUCTUS CertainTeed SAINT-GOBAIN BUILDING TECHNOLOGIES New businesses O UAE > 15% CAGR* = *Sales CAGR 2010-2016 period, in euros SAINT-GOBAIN#50INVESTOR DAY / MAY 2017 Growth acceleration in High-Performance Materials Laurent Guillot Senior Vice-President in charge of the High-Performance Materials Activity (HPM) SAINT-GOBAIN 50#51High-Performance Materials A key component of our customers' performance CERAMIC MATERIALS ABRASIVES PERFORMANCE PLASTICS TEXTILE SOLUTIONS 2016 sales: €4.5bn 13-16 CAGR*: +1.9% 2016 OP margin: 13.7% Zirconia beads for iPhones' surface treatment Complete solutions for car refinishing & paint protection 80% cars worldwide equipped with our Bearings END-MARKETS 2016 41% Other manufacturing 18% Construction O Chemicals & extractive industries 19% 22% Transport INVESTOR DAY / MAY 2017 SALES SPLIT 2016 34% Asia & emerging countries 7% France O 16% 43% Other Western Europe North America *organic sales growth SAINT-GOBAIN 51#52How can we accelerate HPM growth? 1 Increase share of wallet through expansion of product & service portfolio 2 Develop new applications and markets thanks to our innovations 3 Gain market shares by leveraging digital 4 Invest more in fast-growing markets INVESTOR DAY / MAY 2017 SAINT-GOBAIN 52#53Increase share of wallet through expansion of product & service portfolio INVESTOR DAY / MAY 2017 FULL PRODUCT RANGE OFFERING EXPANDED SERVICES PORTFOLIO 53 SEFPRO It's a matter of trust. Automotive aftermarket Beyond Abrasives, an integrated products and services network "We make the difference" SAINT-GOBAIN#54Develop new applications and markets thanks to our innovations INNOVATION & CO-DEVELOPMENT FOR OUR CUSTOMERS Examples of 2016 launches New products Coated veil exterior Refractories wool product line INVESTOR DAY / MAY 2017 New markets SHEERGARD "Sandwich" radomes New applications ◇ New products: >1/3 of our sales > R&D: ~4% of our sales Ceramic liquid filtration membranes ‣ ~700 first patent filings in the last 5 years h SAINT-GOBAIN 54#55Gain market shares by leveraging digital EASE OF DOING BUSINESS WITH US DIGITAL SERVICES FOR OUR CUSTOMERS ADFORS ROPORS NEW SALES CHANNELS THROUGH E-COMMERCE 2015-16 indirect +55% e-commerce sales growth for Adfors New tools for an optimized co-development process INVESTOR DAY / MAY 2017 NOVELIO See the Screen 00 DO Product Selector Find My Screen Match Helpful Videos Δ Pavement Videos Literature MENU E Nous vous assistons dans votre travail de conception. Téléchargez les documents pour vos projets. POUR LES ARCHITECTS X C amazon Try Prima =Outiz HOME DEPOT SAINT-GOBAIN 55#56Invest more in fast-growing markets (1/3) HPM current focus (about 2/3 of its investments*) METAL FABRICATION TRANSPORTATION Organic Total growth: growth: ~6% ~7% CONSTRUCTION Organic Total growth: growth: ~3% ~3% 56 GENERAL MANUFACTURING HEALTHCARE AEROSPACE Organic Total growth: growth: Organic Total growth: growth: INVESTOR DAY / MAY 2017 ~11% ~14% -8% ~10% *2013-2016 SAINT-GOBAIN#57Invest more in fast-growing markets (2/3) TOTAL ~€600m INVESTOR DAY / MAY 2017 Acquisitions 2013-2016 ~1/3 Growth CAPEX 2013-2016 ~2/3 Clean rooms for Life Science Refractory site in India Glass fiber capacity extension in Czech Republic and Mexico New billet press for Bearings SAINT-GOBAIN 57 57#58Invest more in fast-growing markets (3/3) TOTAL ~€600m INVESTOR DAY / MAY 2017 L+SIX Acquisitions 2013-2016 ~1/3 ZenPure SG Plásticos Growth CAPEX 2013-2016 ~2/3 Desde 1980 Polymer components for auto and medical Filtration systems for medical Extruded tubing in South America POLITAPE fitas adesivas Tapes for various applications in Brazil High-performance specialty adhesive tapes h-old Applied Bioprocess Containers Various acquisitions for single-use components for medical Afc Twin Bay Medical TECH PhoenixCoatings Various acquisitions for ceramic coatings in US Most of our 2013-2016 acquisitions created value in N+2 SAINT-GOBAIN 58#59INVESTOR DAY / MAY 2017 Growth acceleration in Flat Glass Patrick Dupin Senior Vice-President in charge of the Flat Glass Activity SAINT-GOBAIN 59#60Flat Glass AUTO GLASS BUILDING GLASS END-MARKETS 2016 7% Other INVESTOR DAY / MAY 2017 44% Transport 49% Construction SPECIALTY SOLUTIONS SALES SPLIT 2016 2016 sales: €5.4bn 13-16 CAGR*: +5.0% 2016 OP margin: 9.1% 1 out of 2 European cars equipped with Sekurit glazing The world's leading supplier of glazing for electric vehicles Saint-Gobain Vetrotech solutions withstand fire for up to 180 min 60 49% Asia & emerging countries 14% France O North America 1% 36% Other Western Europe *organic sales growth SAINT-GOBAIN#61How can Flat Glass grow faster than its markets? 1 Build upon our leadership in innovation for the glass industry 2 3 4 Focus building segment on high-performance glazing and glazing systems Develop innovative systems and solutions in glazing for automotive & transport Strengthen our positioning in emerging countries 5 Develop sustainability-enhancing solutions INVESTOR DAY / MAY 2017 SAINT-GOBAIN 61#62Saint-Gobain, the innovation leader in the glass industry R&D COSTS % sales, 2016 PATENTS #/year R&D Patents >4% including those invoiced to our clients >150 NEW DEVELOPMENT PROJECTS % HAVP* Float products INDUSTRY 4.0 JV High Added Value +22% 27% 33% Operational excellence Products 2012 2016 INVESTOR DAY / MAY 2017 SageGlass 62 CORNING SEKURIT smart vision *HAVP: High Added Value Products SAINT-GOBAIN#63Focus building segment on high-performance glazing and glazing systems PERFORMANCE GLAZING: FIRE RESISTANT AND BURGLAR-PROOF ADVANCED FACADES • Saint-Gobain Contraflam withstanding fire up to 180 minutes • Used for doors, partition walls, staircases, façades or skylights New line in India (2015) New products: Contraflam Mega and Ekoflam · From extra large glass panes to color changing facades • Glare minimization & energy efficiency improvement 2020 target: 130,000 m² - 25% market share INVESTOR DAY / MAY 2017 SAINT-GOBAIN 63#64Develop innovative systems and solutions in glazing for automotive & transport AUTOMOTIVE SUNROOFS SMART WINDSHIELD COLLISION DANGER • #1 player in high-performance glazing for roofing • • Major properties: optical clarity, weight and mechanical strength x2 Our sales grew 2x faster than the sunroof market between 2013 and 2016 Smart windshields developed by Sekurit Major features: OLED displays, HUDs*, rain and light sensors, cameras, antennas and other active systems On-going co-developments with 3 major OEMs INVESTOR DAY / MAY 2017 * HUD: Head-Up Display SAINT-GOBAIN 64 7.9#65Strengthen our positioning in emerging countries - automotive glazing Cuautla (2015) #1 Saltillo MEXICO (2017) Campana (2016) INVESTOR DAY / MAY 2017 #1 #1 EMEA Katowice (2015) Horowice Romania (2018) (2016) Kenitra (2017) BRAZIL & COLOMBIA Bhiwadi (2018) #3 ASIA PACIFIC Wuhan (2016) STRONG POSITIONS IN AUTOMOTIVE GLAZING O Targeted investments in emerging markets and low cost countries ▸ Further growth in China O NAFTA diversification O Morocco hub / Romania plant 65 Capacity increase New factories +23 new lines in emerging countries +2 new lines / -5 lines closed in developed countries SAINT-GOBAIN#66Strengthen our positioning in emerging countries and North America - building glass #1 MEXICO JV #1 EGYPT EGYPT #1 COLOM- BIA #1 BRAZIL JV JV ARGEN- TINA BRAZIL JV RUSSIA #1 INDIA Joint Venture (minority) Joint Venture (majority) Facades glazing through export INVESTOR DAY / MAY 2017 #2 SOUTH KOREA LEADERSHIP IN OUR KEY TARGET MARKETS ‣ Full reflective & interior glass offer ► Facades glazing for Middle East, ASEAN, India and Korea O Advanced coated glass in India, Mexico and Korea O Distribution, adjacencies & proximity services SAINT-GOBAIN 66#67Develop sustainability-enhancing solutions AUTOMOTIVE WINDSHIELDS ZOE ELECTROCHROMIC GLAZING • Thin glazing reduces overall vehicle weight, hence reducing fuel consumption and increasing vehicle range 30% 30% weight saved thanks to thin glazing • By reducing sunlight transmission while maintaining transparence, electrochromic glazing saves energy and enhances well-being for inhabitants 20% up to 20% of energy savings in buildings equipped with SageGlass INVESTOR DAY / MAY 2017 SAINT-GOBAIN 67#68ST 대각 INVESTOR DAY / MAY 2017 6591794 m 68 OPPORTUNITIES TO SEIZE IN A DIGITAL WORLD Fabrice Didier Vice-President, Marketing Kåre O. Malo Senior Vice-President in charge of the Building Distribution Sector SAINT-GOBAIN#69Digital ambition for Saint-Gobain FROM FUNDAMENTALS... ...TO DIGITAL DIFFERENTIATION OPPORTUNITIES 6 Services 5 Fablabs & showrooms 69 4 Open innovation Industry 4.0 PIM referencing & BIM Web presence & e-commerce Very advanced Strong position Starting SAINT-GOBAIN INVESTOR DAY / MAY 2017#70Digital offers new ways to address our customers' needs Web presence PERFORMANCE IN 2016 Social network Website App 115m sessions on our websites (+15% yoy) 2m followers on social networks 210 apps created +17% yoy e-sales in Building Distribution INVESTOR DAY / MAY 2017 PIM* BIM** EARLY SPECIFICATION DETAILED INFO DEDICATED TO PROFESSIONAL PUBLICS OF OUR SOLUTIONS Required number of attributes per article Professional builder x8 General public x4 Architect, industrial % of sales 60% covered by PIM Building Distribution Faster and more economical design Better quality Becoming compulsory *Product Information Management ** Building Information Modeling SAINT-GOBAIN 70 70#71Digital transformation of our operations and innovation processes Multi-task operator Industry 4.0 Fablabs & Showrooms Relation with start-ups cobot To be further developed by Benoit d'Iribarne INVESTOR DAY / MAY 2017 SZ 5 existing fablabs 2 additional planned in 2017-2018 PPL Fablab, Willich A dedicated start-up scooting team: NOVA >80 strategic deals signed over 10 years 3 partnerships with incubators (7 expected in 2017) 3 business challenges in 2016 SAINT-GOBAIN տո SAINT-GOBAIN Challenge startup Saint-Gobain Rener son logement p SAINT-GOBAIN 71#72Growth by services beyond our current playing field SAINT-GOBAIN'S CORE MARKET TOGETHER WE ●एकसाथ MAKE THE Juntos DIFFERENCE SEFPRO 47 It's a matter of trust. SERVICE ADJACENCIES CLAS Pro 0 GREEN SEKURIT PARTNER Works SUSTAINABLE BUILDING SOLUTIONS WADE THE WINNING NON CUSTOMERS BUSINESS MODEL INNOVATION K-AND-U PAM SAINT-GOBAIN echologics A Mueller TECHNOLOGIES COMPANY RSG Refinish Solutions Group HOMLY YOU Maintenance, optimization, disposal and recycling service for refractories INVESTOR DAY / MAY 2017 Business partners club Glazing simulation for building facades Services for private individuals throughout build process Non-invasive existing pipe quality assessment Comfort diagnosis service for restaurants Inventory Intermediation service for private individuals with a renovation project and building professionals management for car body shops SAINT-GOBAIN 72#73Leverage synergies to support the Group's digital transformation 00000 Data analysis capabilities datalab DATA IS CORE BUSINESS </> Software development competencies Competence hub dedicated to apps development and augmented reality Increased visibility with end-customers SAINT-GOBAIN Central team of data scientists specialized in big data analytics, located in the Paris R&D center INVESTOR DAY / MAY 2017 Saint-Gobain tower ▸ A new corporate identity to foster awareness and reach end-customers early in their journey thanks to digital SAINT-GOBAIN 73#74INVESTOR DAY / MAY 2017 Digital transformation for Building Distribution Kåre O. Malo Senior Vice-President in charge of the Building Distribution Sector SAINT-GOBAIN 74#75Building Distribution JEWSON GENERALISTS END-MARKETS 2016 Infrastructures INVESTOR DAY / MAY 2017 61% Renovation Out z SPECIALISTS hanorte SPECIALISTS FOR INDIVIDUALS SALES SPLIT 2016 3% 10% 29% New construction 56% Other Western Europe Asia & emerging countries 41% France 2016 sales: €18.2bn 13-16 CAGR*: +1.0% 2016 OP margin: 3.4% 4,100 sales outlets Close to 100m visits/year on our brands' websites More than 7m customers served each year *organic sales growth SAINT-GOBAIN 75#76Digital transformation for Building Distribution Offer a seamless omnichannel experience 1 Engage customers throughout their journey 2 Generate rich and relevant content 3 4 Deploy omnichannel capabilities Services & solutions for professionals and end-customers 5 Logistics & IT: fundamental enablers. INVESTOR DAY / MAY 2017 SAINT-GOBAIN 76#77Engage customers throughout their journey INVESTOR DAY / MAY 2017 I train & get informa- tion I look for I provide worksites quotes My client I buy the chooses product the product I want to trans- form the product I collect & I handle arrange admini- delivery strative matters I share with my com- munity I get ideas I design & I calculate I look for visualize the my budget project a trade profes- sionnal I buy or get the pro to I need help during I share with others I rate my I have a buy the work trade profes- sional dispute about the work Pre-sales Post-sales ...THROUGH DIFFERENTIATING VALUE PROPOSITION BASED ON 1 PRODUCTS 2 INFORMATION 3 SERVICES SAINT-GOBAIN 77#78Offer a seamless omnichannel experience 000 GENERATE RICH AND RELEVANT CONTENT DEPLOY OMNICHANNEL CAPABILITIES BROADEN 78 SERVICES OFFER INVESTOR DAY / MAY 2017 + REINFORCE LOGISTICS, THE KEY ENABLER SAINT-GOBAIN#79Be the reference by providing the richest and most relevant on-line content POINT.P Matériaux de Construction CHOISIR UNE AGENCE MON PANIER GROS OEUVRE COUVERTURE BPE VOIRIE TP PLATRE ISOLATION ITE MENUISERIES INTÉRIEURES MENUISERIES EXTÉRIEURES BOIS ET PANNEAUX DECORATION INTÉRIEURE DECORATION EXTÉRIEURE OUTILLAGE QUINCAILLERIE Plaque de plâtre standard Placoplatre BA13 - 2,5x1,2 m - ép. 13 mm PLACO Réf. Point.P: 1830140 Ref. PLACO: Code EAN: Unité: NF P01302500 3496250048324 Mètre carré Labels & pour aménagement intérieur. oplatre BA13 standard de Placo à 2 Elle s'utilise en cloisons, en doublages sur ossature (isolation ombles aménagés par l'intérieur), en plafonds, en logos et habillages. Sa sue cartonnée est prête à peindre. Caractéristiques techniques FICHE PRODUIT AVEC PRIX Prix(C) et disponibilité variables selon agence Prix et disponibilité à proximité Store availability Poids Longueur Largeur Hauteur 28.5 kg/Panneau plaque 2.5 m 1.2 m 13 mm Volume 39 dm3 Rich technical attributes PLACO // U01302500 FICHE PRODUIT SANS PRIX Documents Plaque de plâtre Gyproc A BA 13-2,5x1,2 m ép. 13 mm Réf. Point.P:1684739 Prix() et disponibilité variables selon agence Related products INVESTOR DAY / MAY 2017 RÉGLEMENTAIRE-DOP DOP* Prix et disponibilité à proximité C PRICES & STOCKS 24/7 ☑ HOW-TO GUIDES & VIDEOS PRODUCT GUIDES *Declaration Of Performance SAINT-GOBAIN 79#80Deploy omnichannel capabilities BUILDING QUICKLY OUR E-COMMERCE CAPABILITIES ‣ 78% of Building Distribution sales are covered by online transactional capabilities ► Recent achievements: +17 points vs. 2014 ROBUST E-SALES GROWTH +15% 2013-16 CAGR Telhanorte JEWSON Tools Direct Graham The Plumbers' Merchant raab karcher KERAMUNDO Wait der Preser BRØDRENE DAHL Ideal DAHL BATHROOMS CTD ceramic tile distributers blauwpro PRIORITY PLUMBING PLUMBING SUPPLIES MADE EASY SANITAS TROESCH Montér PLATTFORM HANDWERKER FACHMARKT Tegelgroep Nederland g galvano thas in badkame raab karcher /OPTIMERA/ LAPEYRE Outiz POINT.P Matériau de Contritk LA PLATEFORME DU BATIMENT CACNEZ DU TEMPS ET DE L'ARGENT before 2014 DİSPANO 1 PANNEAUX ENTRIES Brossette CEDEO COLELEC DÉCOCÉRAM SFIC PUM PLASTIQUES 2015 2016 LA PLATAFORMA DE LA CONSTRUCCION 2017 asturienne KPARK PASQUILL gibbs & dandy all your building needs JEWSON after 2017 INVESTOR DAY / MAY 2017 OMNICHANNEL OFFERS ROLL-OUT Nye muligheder for færdig- uddannede VVSere click & collect h SAINT-GOBAIN 80#81Better match professional customers' needs INVESTOR DAY / MAY 2017 Digital services to improve customer efficiency Simulators & configurator tools SOLU+ raabcalc scherp calculeren, professioneel offreren HHHHAME Value-added solutions & services Advanced logistic services (track & trace, jobsite logistics) Intermediation HOMLY YOU VOS TRAVAUX MÉRITENT LE BON PRO Relationships & customer orientation Loyalty clubs PÅ RØR OG VVS FAGMANN NIKK Prefab solutions Customer experience center SAINT-GOBAIN 81#82Target empowered end-customers INVESTOR DAY / MAY 2017 Tools & formats to allow inspiration Intermediation services to capture renovation needs Digital showrooms Virtual reality HOMLY YOU VOS TRAVAUX MÉRITENT LE BON PRO ◉ 2 mon maître carré SAINT-GOBAIN 82#83Logistics: a fundamental enabler - FIRST CLASS PRODUCT RANGE AND AVAILABILITY: example of Plumbing, Heating and Sanitary in France Day+1 delivery achieved for 25,000 SKUs SKU availability increased by +20% in 2 years ‣ BACKBONE OF OUR BIG-CITY STRATEGY: example of London HERTFORDSHIRE GREATER LONDON Heathrow ‣ 123 distribution centers & warehouses ► 1.2m m² > ~ €100m invested 2 in surface extension & automation since 2013 > ADVANCED LOGISTIC SERVICES INVESTOR DAY / MAY 2017 HOUNSLOW ་ ་ Purfleet Kallhäll in Sweden SAINT-GOBAIN 83#84IT: a fundamental enabler ‣ ~ €320m invested in Information Systems since 2013 ► SUPPORT CORE BUSINESS & IMPROVE PRODUCTIVITY - Significant ERP programs in most of our geographies Strong impact on salesforce efficiency, and in-branch & back office productivity ► SUPPORT E-BUSINESS AND PREPARE DIGITAL DEVELOPMENT - e-commerce platforms Major ERP projects in Nordics, UK, Germany, and France - PIM systems - CRM* tools - 3rd-party services integration INVESTOR DAY / MAY 2017 *Customer Relationship Management SAINT-GOBAIN 84#85ST 대각 INVESTOR DAY / MAY 2017 6591794 A RENEWED COST SAVINGS POTENTIAL Benoît d'Iribarne Industrial Excellence m 85 55 SAINT-GOBAIN#86Push further our excellence programs WCM BY SAINT-GOBAIN WITH THE ROLLOUT OF WCM SIGNIFICANT POTENTIAL ASSOCIATED WCP BY SAINT-GOBAIN >90% of sites included in the WCM program 83% 57% EXTENDING OUR PURCHASING ACTION PLAN SINCE 2012 CENTRALIZATION & DIGITAL EXPERTISE +46% Professional purchasers x5 E-auctions & e-tenders ~50% of best-in-class sites 18% 7% +57% In productivity (# actions/year) 2012 2016 2020 target INVESTOR DAY / MAY 2017 SAINT-GOBAIN 86#87Industry 4.0: why today? Multi-task operator Cost reduction over the last 10 years SENSORS: /3 + INTEGRATED SYSTEMS > data availability and automatically coordinated machines INVESTOR DAY / MAY 2017 00 00 cobot* € 2 PROCESSING: /60 > real time data analysis 3 ROBOTS: /2 > Automated guided vehicles and cobots 4 BANDWIDTH:/40 + AUGMENTED REALITY > augmented workers made experts * collaborative robots SAINT-GOBAIN 87#881 DATA AVAILABILITY AND AUTOMATICALLY COORDINATED MACHINES Advanced infrastructures deployment SEKURIT INVESTOR DAY / MAY 2017 SAINT-GOBAIN 88#892 REAL TIME DATA ANALYSIS Smart analytics to improve OEE*, quality, logistic flows, resource usage, predictive maintenance D 150 1728 LINENBOARD KT49 25% 89 *Overall Equipment Effectiveness SAINT-GOBAIN INVESTOR DAY / MAY 2017#903 AUTOMATED GUIDED VEHICLES AND COBOTS Number of robots to increase to 3,500 in 2020 INVESTOR DAY / MAY 2017 имм om V5.16 BA SYSTEMES www.baxystemes.com لمي SAINT-GOBAIN ww Müller Maschinentechnik Schrank Matschelan SAINT-GOBAIN 06 90#914 AUGMENTED WORKERS MADE EXPERTS Remote instructions, training, technical teams management KURIT smart vision INVESTOR DAY / MAY 2017 120172349210000 LIVE-VIEW ESTABLISHING LIVE CONNECTION SAINT-GOBAIN 91#92Industry 4.0 1900 INVESTOR DAY / MAY 2017 10 92 TDE SAINT-GOBAIN#93Industry 4.0 brings us closer to our customers INVESTOR DAY / MAY 2017 SEFPRO It's a matter of trust V Real-time interaction with the customer > Made-to-order ‣ Service ▸ Co-development SAINT-GOBAIN 93#94New savings target: €300m/year over 2017-2020 Average yearly cost savings €m 383 Two main sources of additional savings 300 267 2014-15 2016-18 2017-20 INVESTOR DAY / MAY 2017 old plan new plan > Further roll out of existing cost savings programs in Purchasing and Operations ►Progressive benefit from new digital manufacturing initiatives SAINT-GOBAIN 94#95ST 대각 INVESTOR DAY / MAY 2017 6591794 m 95 PROFIT IMPROVEMENT AND CASH FLOW ACCELERATION Guillaume Texier Chief Financial Officer SAINT-GOBAIN#96Operating leverage theory... 北 VOLUME GROWTH € OPERATING PROFIT MARGIN Building Distribution: 3.4% Other activities: 10.2% INVESTOR DAY / MAY 2017 DDD IDEAL OPERATING LEVERAGE: VARIABLE MARGIN Building Distribution: 20-30% Other activities: 35-55% 3 STRONG ASSUMPTIONS ▸ No fixed costs or SG&A added ‣ Constant price/cost spread ‣ Constant mix SAINT-GOBAIN 96#97...confirmed by experience OPERATING LEVERAGE ON POSITIVE VOLUME*, DISTRIBUTION ACTIVITIES OPERATING LEVERAGE ON POSITIVE VOLUME*, INDUSTRIAL ACTIVITIES 57% Impact of price deflation 22% 22% 8% 2014 2015 2016 INVESTOR DAY / MAY 2017 46% 97 39% 2014 2015 2016 *LFL change in Єm operating profit / LFL change in Єm sales volumes, calculated on activities delivering positive volume SAINT-GOBAIN#9816 14 12 10 8 2 Potential margin improvement in Innovative Materials Operating profit % sales ▸ HPM 12-14% IM FG 0 2011 2012 2013 2014 2015 2016 Potential INVESTOR DAY / MAY 2017 Margin improvement drivers in Flat Glass: Price ‣ Value added products ▸ Emerging countries ► Industry 4.0 Margin improvement drivers in HPM: ► Differentiated solutions ► Industry 4.0 ► Focus on growth and operating leverage SAINT-GOBAIN 98#9913 12 Potential margin improvement in Construction Products 11 10 Operating profit % sales 6 00 7 11-13% Interior Solutions ► CP Exterior Solutions Margin improvement drivers in Construction Products: ‣ Volume and operating leverage ‣ Emerging countries ▸ Value added solutions ► Industry 4.0 ► Pipe recovery 6 2011 2012 2013 2014 2015 2016 Potential INVESTOR DAY / MAY 2017 SAINT-GOBAIN 99#100Potential margin improvement in Building Distribution Operating profit % sales BD 3 2 1 4.5- 5.5% 2011 2012 2013 2014 2015 2016 Potential INVESTOR DAY / MAY 2017 Margin improvement drivers in Building Distribution: ▸ Volume recovery and operating leverage > New and digitized formats ▸ Logistics efficiency SAINT-GOBAIN 100#101Non-operating costs trending down Non-operating costs* €m 450 2012 2013 2014 - €138m -31% since 2012 since 2012 2015 312 2016 ■Restructuring costs - cash Restructuring costs - provisions Asbestos provisions Others INVESTOR DAY / MAY 2017 ▸ Asbestos: stable, but too early to point to a reduction ▸ Restructuring costs: less necessary in a better volume environment but industry 4.0 may require some restructuring ▸ Others: litigation costs highly variable, despite numerous prevention programs in place. *Excluding Flat Glass competition litigation SAINT-GOBAIN 101#102Tax rate trending down Tax rate on recurring net income* In % INVESTOR DAY / MAY 2017 34% -7pts equivalent to €140m in 2016 27% 2012 2013 2014 2015 2016 *including Verallia until 2013 SAINT-GOBAIN 102#103Operating WCR: now durably under 30 days Operating working capital* Days of sales at the end of December 59 28 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 INVESTOR DAY / MAY 2017 *including Verallia until 2013 SAINT-GOBAIN 103#104CAPEX: normative level lowered to ~ 4% 2 CAPEX % of sales 5.0 4.4 4.2 3.5 3.5% -4.5% 104 -3.5 -2.7 2004 2006 2008 2010 2012 2014 2016 INVESTOR DAY / MAY 2017 medium term SAINT-GOBAIN#105A constant push to optimize CAPEX... Bergish furnace (Insulation) Cost of CAPEX per unit output, 1999 = 100 rebuild Chennai coaters (Flat Glass) Cost of CAPEX per unit output, 2007 = 100 Coater 1 105 Coater 2 rebuild rebuild 100 70 48 100 64 1999 2006 2015 2007 2017 INVESTOR DAY / MAY 2017 SAINT-GOBAIN#106as well as defined focus areas for development CAPEX Growth in emerging countries Logistics & digital Industry 4.0 Industrialization of innovations 106 SANT-COM INVESTOR DAY / MAY 2017 IRR* > 20% *Internal Rate of Return SAINT-GOBAIN#107Net financial expense Net financial expense* €m - €270m since 2012 812 -33% since 2012 1.5 Bond debt maturities (Єbn) Cost of repaid gross debt (%) 541 0.8 1.0 <500 4.8% 4.5% 4.0% 3.4% 2016 Average cost 2012 2013 2014 2015 2016 2017 2017 2018 2019 INVESTOR DAY / MAY 2017 *including Verallia until 2013 SAINT-GOBAIN 107#108Attractive value creation for shareholders Priorities for dividend: ‣ Payment in cash ▸ Move towards normalized payout ratio of 35-40% ‣ Grow dividend Continue to reduce number of shares to 530m (2010 level) ▸ A decrease of ~20m shares vs. current 553m shares outstanding ◆ Opportunistic in terms of timing, taking into account the Group's financial position and outlook INVESTOR DAY / MAY 2017 SAINT-GOBAIN 108#109INVESTOR DAY / MAY 2017 A DYNAMIC AND VALUE-CREATING PORTFOLIO MANAGEMENT Pierre-André de Chalendar Chairman and Chief Executive Officer SAINT-GOBAIN 109#110Creating value through an efficient portfolio management FINANCIAL INVESTMENTS INVESTOR DAY / MAY 2017 DISPOSALS €0.9bn between 2013 and 2016 €0.9bn between 2013 and 2016 (excluding Verallia) Value creation on average from year 1 SAINT-GOBAIN 110#111Three complementary focus areas for small and medium-sized acquisitions INVESTOR DAY / MAY 2017 0 & 5 111 BOLT-ON ACQUISITIONS NEW GEOGRAPHIES TECHNOLOGICAL NICHES SAINT-GOBAIN#112ROCE Bolt-on acquisitions: fast materialization of cost synergies BOLT-ON ACQUISITIONS Company alone After integration INVESTOR DAY / MAY 2017 time SYNERGIES ▸ Cost (purchasing, SG&A, operations) mostly achieved in the first year EXAMPLES ▸ Building Distribution in Europe and Brazil Construction Products in countries where we have a large presence SAINT-GOBAIN 112#113Example of bolt-on acquisition: Building Distribution in Norway Optimera: 3 acquisitions Dahl: 2 acquisitions Bergen area 2014 2015 2014 2015 Ventilation: Ventilation: 2 acquisitions 1 acquisition 2016 Optimera: 1 acquisition 2016 2016 Prefab: Tiles: 2 acquisitions 1 acquisition INVESTOR DAY / MAY 2017 Optimera build-up acquisitions 2014-16 Dahl build-up acquisitions 2014-16 Trondheim area Oslo area 113 ROCE > WACC on average from year 1 for companies acquired since 2014 SAINT-GOBAIN#114ROCE New geographies: accelerate penetration of high value-added solutions in emerging markets NEW GEOGRAPHIES Company alone After integration INVESTOR DAY / MAY 2017 SYNERGIES Cost (operations) within two years EXAMPLES time Commercial (sales network capillarity, ability to serve global customers) ‣ Innovation through accelerated penetration of differentiating solutions Construction Products and Innovative Materials in emerging countries SAINT-GOBAIN 114#115Example of new geographies: entry strategy in Vietnam E8 VIXIL LUMINI8 SAINT-GOBAIN GIẢI PHÁP TOÀN DIỆN TRẦN & VÁCH NGĂN Entry in Vietnam with the acquisition of a Gypsum plant Acquisition of 14.8% of the share capital of VTI, a Gyproc customer in Vietnam ROCE > WACC from year 1 2007 May 2015 Dec. 2016 Control of the company acquired Start-up of a first fiber-cement line Construction of a second plasterboard line Gyproc plant Project for 2nd plasterboard plant INVESTOR DAY / MAY 2017 SAINT-GOBAIN 115#1165 Technological niches: go beyond current frontiers with techno bricks ROCE TECHNOLOGICAL NICHES Company alone After integration INVESTOR DAY / MAY 2017 SYNERGIES ▸ New techno bricks: expand in new markets or new geographies Digital & services: address non customers 116 (end-users) with business model innovation EXAMPLES time ▸ High-Performance Materials ► Digital and Services for all Sectors SAINT-GOBAIN#117Example of technological niche: medical segment strategy of Performance Plastics (PPL) Applied Bioprocess Containers Twin Bay Medical Dec. 2012 Nov. 2012 March 2013 American Fluorseal PPL acquisitions in medical segment since 2012 (ROCE pre-tax*) Value creation level (2016) LS 2013 2014 2015 2016 Dec. 2015 2 4 4 6 # acquisitions considered Zenpure Dec. 2013 May 2015 SG Plasticos Kunststoff- technologie INVESTOR DAY / MAY 2017 * Average cumulative ROCE from first year after acquisition SAINT-GOBAIN 117#118Boost leadership strategy with an active stream of acquisitions Small and medium size acquisitions Financial investments, €m 750 -20 500 250 ~10 ~10 ~15 ~20 ~30 XX # acquisitions 2011 2012 2013 2014 2015 2016 2017-2020 avg INVESTOR DAY / MAY 2017 h SAINT-GOBAIN 118#119Value creation through the Sika transaction EBITDA multiple including proforma synergies 10.5x 8x Dec. 14 Apr. 17 INVESTOR DAY / MAY 2017 ▸ A successful company: facts have proven us right ▸ A great strategic fit: beneficial for Saint-Gobain and for Sika ▸ A constructive project, aiming at building rather than restructuring ▸ Patience, determination and full alignment on both Saint-Gobain and SWH sides ▸ Creating value from year 3 SAINT-GOBAIN 119#120INVESTOR DAY / MAY 2017 CONCLUSION Pierre-André de Chalendar Chairman and Chief Executive Officer SAINT-GOBAIN 120#121@by Feldman_1, Getty image QUESTIONS WE ANSWERED TODAY How has the Group changed since 2013? Is it time for a recovery in Saint-Gobain's end markets? Can Saint-Gobain grow faster than its markets? Is a more digitized world a threat or an opportunity? Is there more cost reduction potential beyond the existing savings plan? Will market recovery lead to operating leverage and free cash flow generation? Can Saint-Gobain create value through portfolio management? INVESTOR DAY / MAY 2017 SAINT-GOBAIN#122Our strategy positions us ideally to benefit from several growth drivers, short term and long term 1 Good macroeconomic prospects in our main markets ▸ France, Western Europe, US 2 3 4 Continued focus on fast growing geographies and markets ► Reinforcing already strong positions in emerging countries ▸ High tech industrial markets Long term accelerating trends ‣ Comfort, productivity, co-innovation Credible growth acceleration action plans by sector ‣ Differentiation ‣ Concentrating our resources on growing areas INVESTOR DAY / MAY 2017 SAINT-GOBAIN 122#123We have credible action plans in place on all value creation levers 1 New cost savings program fully exploiting the opportunities of Industry 4.0 €1.2bn over the next 4 years 2 Strong focus on operating profit leverage as volumes recover 3 4 Optimization of all P&L and cash lines ▸ Non-operating costs, net financial expense, tax rate, working capital Active portfolio strategy creating value ‣ Confident and determined to close the Sika transaction ▸ ~€2bn in small and mid-size acquisitions from 2017 to 2020 Over €1bn in non-strategic assets disposals from 2017 to 2020 INVESTOR DAY / MAY 2017 SAINT-GOBAIN 123#124Potential for significant value creation Cash allocation 2013 - 2016 Excluding Verallia Cash generated by operations Disposals CAPEX -5.0 Acquisitions Dividends and share buybacks -3.9 INVESTOR DAY / MAY 2017 -0.9 0.9 2017-2020 TREND 9.1 " 7 7 기 لاد SAINT-GOBAIN 124#125Ո = @by Feldman_1, Getty image INVESTOR DAY MAY 17, 2017 SAINT-GOBAIN#126Disclaimer This presentation contains forward-looking statements with respect to Saint-Gobain's financial condition, results, business, strategy, plans and outlook. Forward-looking statements are generally identified by the use of the words "expect", "anticipate", "believe", "intend", "estimate", "plan" and similar expressions. Although Saint-Gobain believes that the expectations reflected in such forward looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of its future performance. Actual results may differ materially from the forward-looking statements as a result of a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond the control of Saint-Gobain, including but not limited to the risks described in Saint-Gobain's registration document available on its website (www.saint-gobain.com). Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this presentation. Saint-Gobain disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. This presentation does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Saint-Gobain. This presentation includes information pertaining to Saint-Gobain's markets and competitive positions therein. Such information is based on market data and Saint-Gobain's actual revenues in those markets for the relevant periods. Saint-Gobain obtained this market information from various third-party sources (industry publications, surveys, and forecasts) and its own internal estimates. No representation or warranty, express or implied, is made by Saint-Gobain or its managers, corporate officers, employees, contractors, representatives or advisors as to the accuracy or completeness of the information or opinions contained in this presentation that have not been independently verified. INVESTOR DAY / MAY 2017 SAINT-GOBAIN 126#127Glossary " ◉ ■ ◉ Organic growth and like-for-like changes in sales and operating income reflect the Group's underlying performance excluding the impact of: ◉ changes in Group structure: indicators for the period concerned are calculated based on the scope of consolidation for the previous period (Group structure impact); changes in exchange rates: indicators for the period concerned and those for the previous period are calculated using exchange rates for the previous period (currency impact); changes in applicable accounting policies. Operating income, operating profit: see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Operating margin: operating income expressed as a percentage of sales. Non-operating costs: see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Net financial expense: see Note 8 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Recurring net income: net attributable income from continuing operations excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions; see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint-gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Capital expenditure: investments in property, plant and equipment; see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint-gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Operating cash flow: see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Free cash flow: cash flow from continuing operations excluding the tax impact of capital gains and losses on disposals, asset write-downs and material non-recurring provisions, less capital expenditure; see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Industrial assets: see Note 3 within chapter 9 of the financial statements in the 2016 registration document (segment assets and liabilities) available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf ROCE: see Note 3 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr_2016_va.pdf WACC: see Note 5 within chapter 9 of the financial statements in the 2016 registration document, available by clicking here: https://www.saint- gobain.com/sites/sgcom.master/files/ddr 2016 va.pdf Capital intensity: industrial assets divided by consolidated annual sales EV: enterprise value 127 INVESTOR DAY / MAY 2017 SAINT-GOBAIN