Compagnie de Saint-Gobain

Earnings Release • Jul 29, 2015

Paris, July 29, 2015

First-half 2015 results

Upswing in results

Following the signature of the agreement with Apollo and in accordance with IFRS 5, the Packaging business (including Verallia North America) was reclassified within "Net income from discontinued operations" in the 2014 and 2015 income statement.

• Organic growth at 0.5% (including a positive 0.5% price impact)
• Strong 4.6% positive currency impact on sales and 0.3% negative Group structure impact
• Operating income up 7.8% on a reported basis and up 1.2% like-for-like before the reclassification of Verallia
• Net debt reduced by €0.5 billion compared to June 30, 2014
• Repurchase of around 4.6 million shares over the last 3 months

(€m)	H1 2014 (restated)	H1 2015	Change
Sales	18,946	19,860	+4.8%
EBITDA	1,767	1,886	+6.7%
Operating income	1,183	1,275	+7.8%
Recurring1 net income	441	552	+25.2%
Net income2	671	558	-16.8%
Free cash flow3	647	728	+12.5%

Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain, commented:

"After a first quarter marked by a tough basis for comparison, second-quarter sales returned to volume growth, driven by the rebound in North America on the back of an upturn in Roofing and by good momentum in Asia, emerging countries and Western Europe except France and Germany. First-half operating income and our outlook for the rest of the year confirm our objective of a further like-for-like improvement in operating income in 2015 along with continuing high levels of free cash flow."

^1. Recurring net income from continuing operations, excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.

^2. Consolidated net income attributable to the Group.

^3. Free cash flow from continuing operations, excluding the tax impact of capital gains and losses on disposals, asset write-downs and material nonrecurring provisions.

Operating performance

First-half sales were up 4.8% to €19,860 million, after reclassification of the Packaging business (including Verallia North America) within "Net income from discontinued operations" in the income statement.

After this restatement (IFRS 5), changes in Group structure had a negative 0.3% impact on sales. Exchange rates continued to have a strong positive impact (4.6%), chiefly driven by the US dollar and pound sterling.

On a like-for-like basis, sales edged up 0.5%. Volumes were stable over the first half and rose 1.5% in the second quarter alone. Amid low raw material cost inflation and energy cost deflation, prices continued to rise slightly, up 0.5% over the first half.

After a slight decline in the first quarter, the three months to June 30 saw growth in all regions except France and Germany. By business, the first half confirmed the upturn in Flat Glass and the expected contraction in Exterior Solutions, related mainly to price levels in the Roofing business.

The Group's operating income climbed 7.8% on a reported basis and remained stable like-forlike versus first-half 2014 due to the absence of volume growth. Before the reclassification of the Packaging business and on a like-for-like basis, operating income moved up 1.2%. The Group's operating margin widened 0.2 points year-on-year, to 6.4%.

Performance of Group Business Sectors

Innovative Materials like-for-like sales continued to improve, up 2.6% thanks to Flat Glass. The Business Sector's operating margin moved up to 10.2% versus 9.1% in first-half 2014.

The second quarter confirmed the upbeat trends seen early in the year in Flat Glass, which posted 5.6% organic growth over the six months to June 30. Automotive Flat Glass continued to report strong gains in all regions, excluding Brazil. Construction markets remained upbeat in Asia and emerging countries, but retreated in Western Europe where prices remained stable.

Rising volumes, together with the full impact of cost savings and an improved product mix, helped drive renewed growth in the operating margin at 7.4%.

High-Performance Materials (HPM) like-for-like sales slipped 0.8% over the first half, hit mainly by the downturn in ceramic proppants. Other HPM businesses continued to deliver organic growth.

Despite this decline in organic growth, the operating margin came in at 13.5% versus 13.3% in the same period one year earlier.

Construction Products (CP) like-for-like sales advanced 0.9% over the first half. The operating margin narrowed to 8.7% versus 9.0% in first-half 2014, affected by Exterior Solutions.

• Interior Solutions posted 2.2% organic growth over the six-month period. In Western Europe, despite a slight improvement in volumes, trading continued to be affected by the market situation in France and Germany, coupled with a slight downward pressure on prices. The US, Asia and emerging countries continued to grow.
• The operating margin moved up to 9.0% versus 8.5% in first-half 2014. Exterior Solutions slipped 0.4% despite a 5.7% rally in the second quarter, due mainly to
• the Roofing business, where volumes rose sharply after a very weak start to the year. Prices for this business were down significantly on the same year-ago period, despite stabilizing quarter-on-quarter. Pipe continued to be buoyed by export contracts, but was affected by anemic demand in infrastructure markets in Western Europe and Brazil. Mortars enjoyed good organic growth in Asia and emerging countries, although growth continued to be hindered by Western Europe.

The operating margin fell to 8.3% from 9.5% in first-half 2014, due chiefly to prices for Exterior Products in the US: Roofing benefited from falling asphalt prices, mainly in the second quarter.

Building Distribution like-for-like sales stabilized in the second quarter, up 0.1%, limiting the decline over the six-month period to 1.1%. France was once again impacted by the sharp contraction in new-builds and by a renovation market yet to show signs of improvement. Germany declined over the first half, although the pace of decline slowed in the second quarter. In contrast, the UK reported further organic growth and a particularly upbeat trend emerged in the Nordic countries, the Netherlands, Southern Europe and Brazil. Overall, despite the downturn in France and Germany which together account for around half of the Business Sector's sales, the operating margin proved resilient, at 2.6% versus 2.9% in first-half 2014, thanks to the advances reported in all other regions.

Analysis by region

The Group's organic growth and margins advanced, lifted by Asia and emerging countries, and by countries in the "Other Western Europe" region.

• France was hit once again by the decline in the construction market in the second quarter, reporting negative organic growth of 3.3% for the three months to June 30 and of 4.2% over the first half. The operating margin narrowed as a result, at 2.6%.
• Other Western European countries, up 2.4% over the quarter, confirmed their organic growth, which came in at 1.7% for the first half. This performance reflects good market conditions in the UK and Scandinavia and an upturn in Southern European countries. Germany, which was still slightly down in the second quarter, retreated 3.7% on the back of sluggish renovation activity. The operating margin for the region improved, at 5.4% versus 4.7% in first-half 2014.
• North America posted 4.9% like-for-like sales growth in the second quarter, powered by the catch-up in Roofing volumes and to a lesser extent by Interior Solutions. Over the six-month period, the region posted negative organic growth of 2.2%, chiefly impacted by subdued Roofing prices and a slower pace of growth in industrial markets. The operating margin was therefore down, at 9.5% compared to 10.9% in first-half 2014.
• Asia and emerging countries continued to deliver good organic growth, which came in at 4.8% for the first six months of the year. Latin America advanced 8.2%, with Brazil proving resilient in a tough macroeconomic environment. Eastern Europe was up 4.3%, buoyed by brisk trading in the Czech Republic, while Asia advanced 0.8%, lifted by India. The operating margin rose to 10.0% of sales, compared to 8.8% one year earlier.

Verallia

Packaging (Verallia) sales moved up 2.1% at constant exchange rates excluding Verallia North America. Organic growth over the first half was driven by small volume gains in Europe and by rising prices in Latin America in an inflationary environment. The operating margin came in at 9.7%.

Analysis of the consolidated financial statements for first-half 2015

The unaudited interim consolidated financial statements were subject to a limited review by the statutory auditors. They were approved and adopted by the Board of Directors on July 29, 2015. Following the signature of the agreement with Apollo on June 6, 2015 (involving a firm and binding offer from Apollo regarding the Packaging business and exclusive talks with Apollo) and in accordance with IFRS 5, the Packaging business (including Verallia North America) is shown within "Net income from discontinued operations" in the income statement for 2014 and 2015.

	H1 2014 Restated*	H1 2015	% change	H1 2014 Published
€m	(A)	(B)	(B)/(A)
Sales and ancillary revenue	18,946	19,860	4.8%	20,446
Operating income	1,183	1,275	7.8%	1,330
Operating depreciation and amortization	584	611	4.6%	667
EBITDA (op.inc. + operating depr./amort.)	1,767	1,886	6.7%	1,997
Non-operating costs	(12)	(154)	n.s.	(16)
Capital gains and losses on disposals, asset write-downs, corporate acquisition fees and earn-out payments	(51)	(41)	-19.6%	(54)
Business income	1,120	1,080	-3.6%	1,260
Net financial expense	(336)	(328)	-2.4%	(354)
Income tax	(158)	(236)	49.4%	(212)
Share in net income (loss) of non-core business equity accounted companies	(1)	0	n.s.	(1)
Net income from continuing operations	625	516	-17.4%	693
Net income from discontinued operations	68	69	1.5%	0
Net income before minority interests	693	585	-15.6%	693
Minority interests	22	27	22.7%	(22)
Net attributable income	671	558	-16.8%	671
Earnings per share2 (in €)	1.19	0.98	-17.6%	1.19
Recurring1 net income from continuing operations	441	552	25.2%	511
Recurring1 earnings per share2 from continuing operations (in €)	0.78	0.97	24.4%	0.91
Cash flow from continuing operations3	1,045	1,195	14.4%	1,198
Cash flow from continuing operations excl. cap. gains tax4	1,010	1,185	17.3%	1,162
Capital expenditure of continuing operations	363	457	25.9%	449
Free cash flow from continuing operations 4 (excluding capital gains tax)	647	728	12.5%	713
Investments in securities of continuing operations	48	92	91.7%	48
Net debt	8,519	7,995	-6.2%	8,519

* First-half 2014 figures have been restated to reflect the impacts of IFRS 5.

1 Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.

2 Calculated based on the number of shares outstanding (excluding treasury shares) at June 30 (569,364,905 shares in 2015, including the increase in capital following payment of the stock dividend on July 3, 2015, versus 564,079,733 shares in 2014).

3 Excluding material non-recurring provisions.

4 Excluding the tax impact of capital gains and losses on disposals, asset write-downs and material non-recurring provisions.

The comments below make reference to the restated financial statements for 2014, after reclassification of the Packaging business (including Verallia North America) within "Net income from discontinued operations" in the income statement.

Consolidated sales advanced 4.8% on a reported basis. Exchange rates had a positive 4.6% impact on sales, mainly due to gains in the US dollar and pound sterling against the euro. Changes in Group structure had a negative 0.3% impact, primarily reflecting sales of small, non-core businesses. Like-for-like (comparable structure and exchange rates), sales were up 0.5%, lifted by the price effect.

Operating income climbed 7.8% on a reported basis, driven chiefly by the currency effect. The operating margin improved to 6.4% of sales versus 6.2% in first-half 2014, buoyed by an improved margin in Innovative Materials.

EBITDA (operating income + operating depreciation and amortization) was up 6.7%. The Group's EBITDA margin came out at 9.5% of sales versus 9.3% of sales in first-half 2014.

Non-operating costs totaled €154 million, with a decrease in restructuring costs compared to the same period in 2014. The first-half 2014 basis for comparison (€12 million) included the €202 million write-back from the provision to reflect the reduction in the automotive Flat Glass fine. The €45 million accrual to the provision for asbestos-related litigation involving CertainTeed in the US is unchanged from the last few half-year periods.

The net balance of capital gains and losses on disposals, asset write-downs and corporate acquisition fees was a negative €41 million versus a negative €51 million in first-half 2014, which had benefited from the €375 million capital gain on the disposal of Verallia North America. Asset write-downs also represented €452 million in first-half 2014 compared to €24 million in the six months to June 30, 2015. Business income for the period fell to €1,080 million (down 3.6% on first-half 2014 which included the one-off €202 million provision write-back).

Net financial expense improved, down 2.4% to €328 million from €336 million one year earlier, reflecting the decrease in the cost of gross debt to 3.7% at June 30, 2015 (4.4% at June 30, 2014). The improvement came despite the increase in other financial expenses mainly due to the discounting of provisions with no cash impact.

The income tax rate on recurring net income remained stable at 30%. Income tax expense totaled €236 million, up from the exceptionally low €158 million in first-half 2014 resulting from asset write-downs in the period, capital gains on the disposal of Verallia North America and the write-back of the provision for the Flat Glass fine.

Recurring net income from continuing operations (excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions) jumped 25.2% to €552 million.

Net attributable income was down 16.8% to €558 million and includes net income relating to Verallia (attributable to the Group) for €65 million (€67 million in first-half 2014).

Capital expenditure totaled €457 million (€363 million in first-half 2014), representing 2.3% of sales compared to a particularly low 1.9% of sales in the same period one year earlier.

Cash flow from operations rose 14.4% to €1,195 million; before the tax impact of capital gains and losses on disposals, asset write-downs and material non-recurring provisions, cash flow from operations was up 17.3% to €1,185 million, while free cash flow (cash flow from operations less capital expenditure) advanced 12.5% to €728 million (3.7% of sales versus 3.4% of sales in first-half 2014).

The difference between EBITDA and capital expenditure improved, up 1.8% to €1,429 million (€1,404 million in the six months to June 30, 2014), representing 7.2% of sales (7.4% in first-half 2014).

Operating working capital requirements (WCR) totaled €4,448 million at June 30, 2015 (€4,888 million in the same year-ago period), representing 40.8 days' sales, an improvement of 2.5 days year-on-year (an improvement of around 1 day excluding the impact of Verallia and exchange rates).

Investments in securities were limited, at €92 million (€48 million in first-half 2014) and correspond to small-scale acquisitions in the three business sectors.

Net debt continues to improve gradually, down 6.2% year-on-year to €8.0 billion. Net debt represents 40% of consolidated equity, compared to 46% at June 30, 2014.

The net debt to EBITDA ratio came in at 2.1 (1.9 before the reclassification of the Packaging business), compared to 2.0 at end-June 2014.

Update on asbestos claims in the US

Some 2,000 claims were filed against CertainTeed in the first half of 2015 (as in first-half 2014). At the same time, around 2,000 claims were settled (versus 3,000 in first-half 2014), bringing the total number of outstanding claims to around 37,000 at June 30, 2015, unchanged from December 31, 2014.

A total of USD 71 million in indemnity payments were made in the US in the 12 months to June 30, 2015, versus USD 68 million in the year to December 31, 2014.

2015 outlook and action plan priorities

After a first half penalized by tough prior-year comparatives, the Group will benefit from a more favorable climate in the six months to December 31:

• France should gradually stabilize.
• Regarding other Western European countries, the outlook in Germany remains uncertain; the UK and Nordic countries should continue to deliver good growth in the second half, and Spain should continue to improve significantly.
• In North America, trading should improve in the second half.
• In Asia and emerging countries, our businesses should continue to post good organic growth over the full year, despite the slowdown in Brazil.

The Group confirms its action plan priorities:

• keep its priority focus on increasing sales prices amid low raw material cost inflation and energy cost deflation;
• unlock additional cost savings of €360 million excluding Verallia (calculated on the 2014 cost base), of which €190 million in the first half;
• pursue a capital expenditure program of around €1,500 million excluding Verallia;
• renew its commitment to invest in R&D in order to support its differentiated, high valueadded strategy;
• finalize the divestment of Verallia, which should be effective before the end of the year;
• pursue its plan to acquire a controlling interest in Sika.

In line with its long-term objectives, Saint-Gobain repurchased 4.6 million shares over the last three months. To date, this almost entirely offsets the 2015 dilution resulting from the Group Savings Plan and the exercise of stock options.

Lastly, Saint-Gobain confirms its objectives and expects a further like-for-like improvement in operating income for 2015 and a continuing high level of free cash flow.

Financial calendar

• Sales for the first nine months of 2015: October 28, 2015, after close of trading on the Paris Bourse.

	Analyst/Investor relations		Press relations
Gaetano Terrasini Vivien Dardel Marine Huet	+33 1 47 62 32 52 +33 1 47 62 44 29 +33 1 47 62 30 93	Sophie Chevallon Susanne Trabitzsch	+33 1 47 62 30 48 +33 1 47 62 43 25

An information meeting for analysts and investors will be held at 8:30am (GMT+1) on July 30, 2015 and will be broadcast live on www.saint-gobain.com.

Important disclaimer – forward-looking statements:

This press release 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 forwardlooking 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 document. 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 press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Saint-Gobain.

7

For further information, please visit www.saint-gobain.com.

Appendix 1: Results by business sector and geographic area

H1 2014: restated accounts including IFRS 5 impact

I. SALES	H1 2014	H1 2015	Change on an actual structure	Change on a comparable	Change on a comparable	H1 2014
	(in EUR m)	Restated (in EUR m)		structure basis	structure and currency basis	Published	Impact
By sector and division:
Innovative Materials 1	4,484	4,922	+9.8%	+9.6%	+2.6%	4,484
Flat Glass	2,398	2,633	+9.8%	+10.0%	+5.6%	2,398
High-Performance Materials	2,091	2,297	+9.9%	+9.3%	-0.8%	2,091
Construction Products 1	5,643	6,079	+7.7%	+7.8%	+0.9%	5,643
Interior Solutions	2,954	3,197	+8.2%	+7.9%	+2.2%	2,954
Exterior Solutions	2,719	2,913	+7.1%	+7.5%	-0.4%	2,719
Building Distribution	9,287	9,338	+0.5%	+0.8%	-1.1%	9,287
Packaging (Verallia)	0	0				1,500	-1,500
Internal sales and misc.	-468	-479	n.m.	n.m.	n.m.	-468
Group Total	18,946	19,860	+4.8%	+5.1%	+0.5%	20,446	-1,500
1 including intra-sector eliminations

Group Total	18,946	19,860	+4.8%	+5.1%	+0.5%	20,446	-1,500
Internal sales	-982	-953	n.m.	n.m.	n.m.	-1,002	20
Emerging countries and Asia	3,851	4,219	+9.6%	+9.0%	+4.8%	4,024	-173
North America	2,326	2,738	+17.7%	+19.1%	-2.2%	2,641	-315
Other Western European countries	8,204	8,574	+4.5%	+4.6%	+1.7%	8,835	-631
France	5,547	5,282	-4.8%	-4.2%	-4.2%	5,948	-401
By geographic area:

II. OPERATING INCOME	H1 2014	H1 2015	Change on an actual structure	H1 2014	H1 2015	H1 2014
	Restated (in EUR m)	(in EUR m)	basis	(in % of sales)	(in % of sales)	Published	Impact
By sector and division:
Innovative Materials	409	504	+23.2%	9.1%	10.2%	409
Flat Glass	131	194	+48.1%	5.5%	7.4%	131
High-Performance Materials	278	310	+11.5%	13.3%	13.5%	278
Construction Products	508	529	+4.1%	9.0%	8.7%	508
Interior Solutions	251	288	+14.7%	8.5%	9.0%	251
Exterior Solutions	257	241	-6.2%	9.5%	8.3%	257
Building Distribution	265	242	-8.7%	2.9%	2.6%	265
Packaging (Verallia)	0	0				147	-147
Misc.	1	0	n.m.	n.m.	n.m.	1
Group Total	1,183	1,275	+7.8%	6.2%	6.4%	1,330	-147
By geographic area:
France	209	136	-34.9%	3.8%	2.6%	247	-38
Other Western European countries	382	460	+20.4%	4.7%	5.4%	442	-60
North America	253	259	+2.4%	10.9%	9.5%	298	-45
Emerging countries and Asia	339	420	+23.9%	8.8%	10.0%	343	-4
Group Total	1,183	1,275	+7.8%	6.2%	6.4%	1,330	-147

	H1 2014
Published	Impact

Impact

-330	-147
343	-4
298	$-45$
442	-60
247	-38

III. BUSINESS INCOME	H1 2014	H1 2015 (in EUR m)	Change on an actual structure	H1 2014 (in % of sales)	H1 2015	H1 2014
	Restated (in EUR m)		basis		(in % of sales)	Published	Impact
By sector and division:
Innovative Materials	359	463	+29.0%	8.0%	9.4%	359
Flat Glass	131	181	+38.2%	5.5%	6.9%	131
High-Performance Materials	228	282	+23.7%	10.9%	12.3%	228
Construction Products	323	475	+47.1%	5.7%	7.8%	323
Interior Solutions	235	258	+9.8%	8.0%	8.1%	235
Exterior Solutions	88	217	+146.6%	3.2%	7.4%	88
Building Distribution	105	196	+86.7%	1.1%	2.1%	105
Packaging (Verallia)	0	0				515	-515
Misc. (a)	333	-54	n.m.	n.m.	n.m.	-42	375
Group Total	1,120	1,080	-3.6%	5.9%	5.4%	1,260	-140

Group Total	1,120	1,080	-3.6%	5.9%	5.4%	1,260	-140
Emerging countries and Asia	211	380	+80.1%	5.5%	9.0%	214	-3
North America (a)	66	200	+203.0%	2.8%	7.3%	110	-44
Other Western European countries	182	393	+115.9%	2.2%	4.6%	240	-58
France	661	107	-83.8%	11.9%	2.0%	696	-35
By geographic area:

(a) after asbestos-related charge (before tax) of €45m in H1 2014 and €45m in H1 2015

IV. CASH FLOW	H1 2014	H1	Change on an	H1	H1	H1 2014
	Restated (in EUR m)	2015 (in EUR m)	actual structure basis	2014 (in % of sales)	2015 (in % of sales)	Published	Impact
By sector and division:
Innovative Materials	344	465	+35.2%	7.7%	9.4%	344
Flat Glass	105	221	+110.5%	4.4%	8.4%	105
High-Performance Materials	239	244	+2.1%	11.4%	10.6%	239
Construction Products	369	415	+12.5%	6.5%	6.8%	369
Building Distribution	199	188	-5.5%	2.1%	2.0%	199
Packaging (Verallia)	0	0				123	-123
Misc. (a)	133	127	n.m.	n.m.	n.m.	163	-30
Group Total	1,045	1,195	+14.4%	5.5%	6.0%	1,198	-153
By geographic area:
France	99	90	-9.1%	1.8%	1.7%	134	-35
Other Western European countries	359	470	+30.9%	4.4%	5.5%	439	-80
North America (a)	209	200	-4.3%	9.0%	7.3%	236	-27
Emerging countries and Asia	378	435	+15.1%	9.8%	10.3%	389	-11
Group Total	1,045	1,195	+14.4%	5.5%	6.0%	1,198	-153

(a) after asbestos-related charge (after tax) of €27m in H1 2014 and €27m in H1 2015

V. CAPITAL EXPENDITURE	H1 2014	H1	Change on an	H1	H1	H1 2014
	Restated (in EUR m)	2015 (in EUR m)	actual structure basis	2014 (in % of sales)	2015 (in % of sales)	Published	Impact
By sector and division:
Innovative Materials	129	165	+27.9%	2.9%	3.4%	129
Flat Glass	75	91	+21.3%	3.1%	3.5%	75
High-Performance Materials	54	74	+37.0%	2.6%	3.2%	54
Construction Products	150	183	+22.0%	2.7%	3.0%	150
Interior Solutions	79	110	+39.2%	2.7%	3.4%	79
Exterior Solutions	71	73	+2.8%	2.6%	2.5%	71
Building Distribution	76	82	+7.9%	0.8%	0.9%	76
Packaging (Verallia)	0	0				86	-86
Misc.	8	27	n.m.	n.m.	n.m.	8
Group Total	363	457	+25.9%	1.9%	2.3%	449	-86
By geographic area:
France	72	69	-4.2%	1.3%	1.3%	80	-8
Other Western European countries	95	107	+12.6%	1.2%	1.2%	139	-44
North America	63	119	+88.9%	2.7%	4.3%	83	-20
Emerging countries and Asia	133	162	+21.8%	3.5%	3.8%	147	-14
Group Total	363	457	+25.9%	1.9%	2.3%	449	-86

VI. EBITDA	H1 2014	H1 2015	Change on an actual structure	H1 2014	H1 2015	H1 2014
	Restated (in EUR m)	(in EUR m)	basis	(in % of sales)	(in % of sales)	Published	Impact
By sector and division:
Innovative Materials	626	731	+16.8%	14.0%	14.9%	626
Flat Glass	274	347	+26.6%	11.4%	13.2%	274
High-Performance Materials	352	384	+9.1%	16.8%	16.7%	352
Construction Products	732	765	+4.5%	13.0%	12.6%	732
Interior Solutions	403	448	+11.2%	13.6%	14.0%	403
Exterior Solutions	329	317	-3.6%	12.1%	10.9%	329
Building Distribution	394	374	-5.1%	4.2%	4.0%	394
Packaging (Verallia)	0	0				230	-230
Misc.	15	16	n.m.	n.m.	n.m.	15
Group Total	1,767	1,886	+6.7%	9.3%	9.5%	1,997	-230
By geographic area:
France	360	287	-20.3%	6.5%	5.4%	419	-59
Other Western European countries	570	650	+14.0%	6.9%	7.6%	674	-104
North America	327	349	+6.7%	14.1%	12.7%	372	-45
Emerging countries and Asia	510	600	+17.6%	13.2%	14.2%	532	-22
Group Total	1,767	1,886	+6.7%	9.3%	9.5%	1,997	-230

H1 2014
Published	Impact

1,198	$-153$
389	$-11$
236	-27
439	-80
134	-35

H1 2014
Published	Impact

449	-86
147	$-14$
83	$-20$
139	$-44$
80	-8

H1 2014
Published	Impact

1,997	-230
532	$-22$
372	-45
674	$-104$
419	-59

Appendix 2: Sales by business sector and geographic area - Second Quarter

Q2 2014: restated accounts including IFRS 5 impact

SALES	Q2 2014	Q2 2015	Change on an	Change on a	Change on a comparable	Q2 2014
	Restated (in EUR m)	(in EUR m)	actual structure basis	structure basis	comparable structure and currency basis		Impact
By sector and division:
Innovative Materials 1	2,309	2,537	+9.9%	+9.8%	+3.0%	2,309
Flat Glass	1,239	1,348	+8.8%	+9.3%	+5.5%	1,239
High-Performance Materials	1,073	1,193	+11.2%	+10.3%	+0.3%	1,073
Construction Products 1	2,886	3,246	+12.5%	+12.2%	+4.6%	2,886
Interior Solutions	1,502	1,656	+10.3%	+9.7%	+3.4%	1,502
Exterior Solutions	1,401	1,606	+14.6%	+14.7%	+5.7%	1,401
Building Distribution	4,926	5,023	+2.0%	+2.2%	+0.1%	4,926
Packaging (Verallia)	0	0				678	-678
Internal sales and misc.	-227	-255	n.m.	n.m.	n.m.	-227
Group Total	9,894	10,551	+6.6%	+6.9%	+2.1%	10,572	-678
1 including intra-sector eliminations
By geographic area:
France	2,863	2,743	-4.2%	-3.3%	-3.3%	3,076	-213
Other Western European countries	4,340	4,584	+5.6%	+5.6%	+2.4%	4,685	-345
North America	1,168	1,493	+27.8%	+29.2%	+4.9%	1,205	-37
Emerging countries and Asia	2,026	2,215	+9.3%	+8.7%	+5.8%	2,119	-93
Internal sales	-503	-484	n.m.	n.m.	n.m.	-513	10

Group Total 9,894 10,551 +6.6% +6.9% +2.1% 10,572 -678

Appendix 3: Consolidated balance sheet

(in € million)	June 30, 2015	Dec 31, 2014
Assets Goodwill	10,897	10,462
Other intangible assets	3,229	3,085
Property, plant and equipment	11,776	12,657
Investments in associates	374	386
Deferred tax assets	1,325	1,348
Other non-current assets	699	646
Non-current assets	28,300	28,584
Inventories	6,157	6,292
Trade accounts receivable	5,990	4,923
Current tax receivable	128	156
Other accounts receivable	1,658	1,356
Cash and cash equivalents	4,249	3,493
Assets of discontinued operations	2,253	0
Current assets	20,435	16,220
Total assets	48,735	44,804
Liabilities and Shareholders' equity
Capital stock	2,294	2,248
Additional paid-in capital and legal reserve	6,785	6,437
Retained earnings and net income for the year	10,412	10,411
Cumulative translation adjustments	(173)	(953)
Fair value reserves	318	(63)
Treasury stock	(174)	(67)
Shareholders' equity	19,462	18,013
Minority interests	406	405
Total equity	19,868	18,418
Long-term debt	8,495	8,713
Provisions for pensions and other employee benefits	3,426	3,785
Deferred tax liabilities	802	634
Provisions for other liabilities and charges	1,290	1,225
Non-current liabilities	14,013	14,357
Current portion of long-term debt	2,096	1,389
Current portion of provisions for other liabilities and charges	423	409
Trade accounts payable	5,854	6,062
Current tax liabilities	104	97
Other accounts payable	3,770	3,460
Short-term debt and bank overdrafts	1,653	612
Liabilities of discontinued operations	954	0
Current liabilities	14,854	12,029
Total equity and liabilities	48,735	44,804

Appendix 4: Consolidated cash flow statement

2014 restated accounts including IFRS 5 impact

(in € million)	H1 2014 Restated	H1 2015	H1 2014 Published
Net income of continuing operations attributable to equity holders of the parent	604	493	671
Minority interests in net income	21	23	22
Share in net income of associates, net of dividends received	(10)	(12)	(11)
Depreciation, amortization and impairment of assets	1,036	633	1,119
Gains and losses on disposals of assets	(402)	10	(399)
Unrealized gains and losses arising from changes in fair value and share-based payments	(17)	21	(17)
Changes in inventories	(463)	(250)	(475)
Changes in trade accounts receivable and payable, and other accounts receivable and payable	(1,097)	(1,128)	(1,199)
Changes in tax receivable and payable	17	24	34
Changes in deferred taxes and provisions for other liabilities and charges	(1,141)	43	(1,129)
Net cash from operating activities of continuing operations Net cash from operating activities of discontinued operations	(1,452) 68	(143) 61
Net cash from operating activities	(1,384)	(82)	(1,384)
Purchases of property, plant and equipment [ H1-2014: (363), H1-2015: (457) ] and intangible assets	(412)	(511)	(499)
Acquisitions of property, plant and equipment in finance leases	(5)	(8)	(5)
Increase (decrease) in amounts due to suppliers of fixed assets	(100)	(135)	(140)
Acquisitions of shares in consolidated companies [ H1-2014: (29), H1-2015:(85) ], net of debt acquired	(89)	(86)	(89)
Acquisitions of other investments	(19)	(7)	(19)
Increase in investment-related liabilities	1	4	1
Decrease in investment-related liabilities Investments	(1) (625)	(14) (757)	(1) (752)
Disposals of property, plant and equipment and intangible assets	35	73	35
Disposals of shares in consolidated companies, net of net debt divested	866	7	999
Disposals of other investments and other divestments	0	0	0
Divestments	901	80	1,034
Increase in loans and deposits	(55)	(84)	(57)
Decrease in loans and deposits Net cash from (used in) investment and divestment activities of continuing operations	32 253	33 (728)	34
Net cash from (used in) investment and divestment activities of discontined operations	6	(107)
Net cash used in investment and divestment activities	259	(835)	259
Issues of capital stock	408	394	408
Minority interests' share in capital increases of subsidiaries	8	12	8
Increase (decrease) in investment-related liabilities (put on minority interests)	0	0	0
Disposals of minority interests without loss of control (Increase) decrease in treasury stock	0 0	0 (104)	0 0
Dividends paid	(685)	(695)	(685)
Increase (decrease) in dividends payable	441	455	441
Dividends paid to minority shareholders of consolidated subsidiaries	(34)	(34)	(35)
Net cash from (used in) financing activities of continuing operations	138	28
Net cash from (used in) financing activities of discontinued operations	(1)	(1)
Net Cash from (used in) financing activities	137	27	137
Increase (decrease) in net debt	(988)	(890)	(988)
Net effect of exchange rate changes on net debt	(12)	(13)	(5)
Net effect from changes in fair value on net debt	(13)	33	(13)
Net effect of exchange rate changes on net debt of discontinued operations	7	(3)
Transfer of net debt in assets and liabilities of discontinued operations	0	99
Net debt at beginning of period	(7,513)	(7,221)	(7,513)
Net debt at end of period	(8,519)	(7,995)	(8,519)

Appendix 5: Results of Packaging Sector (Verallia)

I. SALES	H1 2014 (in EUR m)	H1 2015 (in EUR m)	Change on an actual structure basis	Change on a comparable structure basis	Change on a comparable structure and currency basis
Packaging (Verallia)	1,500	1,194	-20.4%	+0.7%	+2.1%
including VNA	314	0
Total	1,500	1,194	-20.4%	+0.7%	+2.1%

II. OPERATING INCOME *	H1 2014 (in EUR m)	H1 2015 (in EUR m)	Change on an actual structure basis	H1 2014 (in % of sales)	H1 2015 (in % of sales)
Packaging (Verallia)	147	116	-21.1%	9.8%	9.7%
including VNA	45	0
Total	147	116	-21.1%	9.8%	9.7%

III. BUSINESS INCOME *	H1 2014 (in EUR m)	H1 2015 (in EUR m)	Change on an actual structure basis	H1 2014 (in % of sales)	H1 2015 (in % of sales)
Packaging (Verallia)	140	112	-20.0%	9.3%	9.4%
including VNA	43	0
Total	140	112	-20.0%	9.3%	9.4%

IV. CASH FLOW	H1 2014 (in EUR m)	H1 2015 (in EUR m)	Change on an actual structure basis	H1 2014 (in % of sales)	H1 2015 (in % of sales)
Packaging (Verallia)	153	140	-8.5%	10.2%	11.7%
including VNA	27	0
Total	153	140	-8.5%	10.2%	11.7%

V. CAPITAL EXPENDITURE	H1 2014 (in EUR m)	H1 2015 (in EUR m)	Change on an actual structure basis	H1 2014 (in % of sales)	H1 2015 (in % of sales)
Packaging (Verallia)	86	67	-22.1%	5.7%	5.6%
including VNA	19	0
Total	86	67	-22.1%	5.7%	5.6%

VI. EBITDA	H1 2014 (in EUR m)	H1 2015 (in EUR m)	Change on an actual structure basis	H1 2014 (in % of sales)	H1 2015 (in % of sales)
Packaging (Verallia)	230	200	-13.0%	15.3%	16.8%
including VNA	45	0
Total	230	200	-13.0%	15.3%	16.8%

* After stop of depreciation of €18m in H1 2014 and before stop of depreciation of €14m in H1 2015

Appendix 6: Debt at June 30, 2015

Amounts in €bn

Comments

Amount and structure of net debt	€bn
Gross debt	12.2	At end of June 2015, 74% of gross debt was at fixed interest
Cash & cash equivalents	4.2	rates and the average cost of gross debt was 3.7%
Net debt	8.0
Breakdown of gross debt	12.2
Bond debt and perpetual notes	9.5
September 2015	1.0
May 2016	0.7
September 2016	0.5
December 2016	0.4	(GBP 0.3bn)
April 2017	1.3
June 2017	0.2
March 2018	0.1	(NOK 0.8bn)
October 2018	0.7
September 2019	0.9
After 2020	3.7
Other long-term debt	0.7	(including EUR 0.4bn long-term securitization)
Short-term debt	2.0	(excluding bonds)
Commercial paper (< 3 months)	0.9	Maximum amount of bond issue: €3bn
Securitization	0.3	(EUR 0.2bn equivalent in USD + EUR 0.1bn)
Local debt and accrued interest	0.8	Annual rollover; several hundreds of different sources of financing

Credit lines, cash & cash equivalents	8.2
Cash and cash equivalents	4.2
Back-up credit-lines	4.0	See breakdown below

Breakdown of back-up credit lines 4.0

All lines are confirmed and undrawn, with no Material Adverse Change (MAC) clause

		Expiry	Covenants
Syndicated line:	€2.5bn	December 2019	None
Syndicated line:	€1.5bn	December 2018	None