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Compagnie de Saint-Gobain25 January 2008 January 24, 2008 STRONG UPSWING IN 2007 ESTIMATED RESULTS OUTPERFORMING OBJECTIVES • SALES: +4.4% (€43,421 million); +5.8% at constant exchange rates*; +5.0% at constant structure and exchange rates* • OPERATING INCOME: +10.6% (€4,108 million); +11.4% at constant exchange rates* • RECURRING NET INCOME**: +24.2% (€2,114 million) * based on average exchange rates for 2006* * excluding capital gains, asset write-downs, and the €694 million provision for the Flat Glass fines (European Commission) 2008 OBJECTIVES • MODEST GROWTH IN OPERATING INCOME (at constant exchange rates*) AND RECURRING NET INCOME** * average exchange rates for 2007** excluding capital gains, asset write-downs, and the €694 million provision for the Flat Glass fines (European Commission) Performance of Group sectors The Saint-Gobain Group enjoyed upbeat trading activity in 2007, delivering 5%organic growth (including a 3.7% price impact and a 1.3% volume effect) despitethe slowdown observed in the second half of the year, which compares to buoyantbusiness levels in the second half of 2006. The Group's five sectors allcontributed to this performance (see appendix 1), particularly activities linkedto construction markets in Europe (Flat Glass, Building Distribution, InteriorSolutions), which enjoyed vigorous demand bolstered by new regulations promotingenergy efficiency in buildings. This strong momentum more than offset thedownturn in US construction activities. Emerging countries and Asia, whichaccount for 15% of Group sales and 19% of its operating income, continued todeliver robust growth (+16.6%) across all Group businesses. Lastly, industrialoutput and capital expenditure held firm in all regions. The Flat Glass sector turned in the Group's strongest performance, both in termsof sales (+10.4% on a reported basis and +11.2% like-for-like) and operatingincome (+49.4%). This reflects vibrant demand across all of its markets(construction and automotive industries) in Europe as well as in emergingcountries, sales price increases implemented in the construction glass business,and a rise in contributions from high value-added products. As a result, thesector's operating margin jumped to 12.8%, from 9.4% in 2006. Within the High-Performance Materials (HPM) sector, Ceramics, Plastics &Abrasives reported 4.5% organic growth on the back of healthy capitalexpenditure and industrial output worldwide. Organic growth for the sector as awhole came in at 2.2% given the 4.2% downturn in the Reinforcements business, asignificant part of which was sold to Owens Corning on November 1, 2007. Thesector's operating margin improved significantly, up to 12.3% versus 10.1% in2006. Sales for the Construction Products (CP) sector edged up 2.5% like-for-like(+2.2% on a reported basis), spurred by vigorous growth in demand across westernEurope and emerging countries (77% of total sales). This performance comfortablyoffsets - in both Interior and Exterior Solutions divisions - the downturn inthe US housing market (23% of total sales). In this more difficult climate,operating margin held up well, coming in at 11.8% (compared to 12.7% in 2006):the operating margin for the Interior Solutions division stood at 14.8% (versus16% in 2006), while Exterior Solutions reported an operating margin of 7.4%(down from 7.8% in 2006). Building Distribution delivered a 10.8% jump in sales on a reported basis,boosted partly by acquisitions carried out in 2006 and 2007, coupled with solid5.7% organic growth. Business held firm in most western European countriesexcept Germany. As in previous years, the best like-for-like sales performanceswere achieved in Scandinavia, Spain, France and, to a lesser extent, the UnitedKingdom. Emerging countries continued to enjoy robust trading conditions, withsales in excess of the billion-euro mark, bolstered by organic growth of around20% in both eastern Europe and Latin America. The Building Distribution businessalso delivered double-digit growth in operating income (+10.1%), whichrepresents 5.7% of sales. The Packaging sector posted a 5.5% rise in like-for-like sales, thanks chieflyto an increase in sales prices on the back of strong demand in Europe andemerging countries. Excluding the impact of the disposals of Calmar andDesjonqueres, operating income for the sector surged 24% and operating marginfor the year edged up to 11.1% from 9.1%. Taking into account the impact of theCalmar and Desjonqueres divestments, which were completed on July 1, 2006 andMarch 31, 2007 respectively, operating income advanced 6.6% and operating marginedged up to 11.3% in 2007 from 9.2% a year earlier. Analysis of the estimated consolidated financial statements for 2007 Based on the estimates presented at the Board of Directors' meeting on January24, 2008, unaudited key consolidated data for 2007 are set out below. The finalversion of the 2007 consolidated financial statements will be authorized forissue by the Board of Directors at their meeting of March 20, 2008. 2006 2007 % • millions • millions change (1) (2) (2)/(1) Sales and ancillary revenue 41,596 43,421 +4.4% Operating income 3,714 4,108 +10.6% Non-operating costs* (367) (290)* n.m.Provision for Flat Glass fines 0 (694)Capital gains and losses and exceptional assetwrite-downs (27) 30 n.m.Dividends received 2 2 n.m.Business income 3,322 3,156 -5.0%Net financial expense (748) (701) -6.3%Income tax (899) (926) +3.0%Share in net income of associates 7 14 n.m.Income before minority interests 1,682 1,543 -8.3%Minority interests (45) (56) +24.4% Recurring net income** 1,702 2,114 +24.2% Recurring** earnings per share (1) (in •) 4.62 5.65 +22.3%Net income 1,637 1,487 -9.2%Earnings per share (1) (in •) 4.44 3.97 -10.6% Cash flow from operations* 3,347 3,762 +12.4%Cash flow from operations excluding capital gains tax** 3,374 3,712 +10.0%Depreciation and amortization 1,717 1,875 +9.2%Capital expenditure 2,191 2,273 +3.7%Free cash flow (excluding capital gains tax)** 1,183 1,439 21.6% Investments in securities 584 965 +65.2%Net debt 11,599 9,928 -14.4% * excluding the provision for Flat Glass fines (European Commission).** excluding capital gains and losses, asset write-downs and the provision for Flat Glass fines (European Commission) (1) calculated based on the number of shares outstanding at December 31(374,216,152 shares in 2007 versus 368,419,723 in 2006). Based on the averagenumber of shares outstanding (367,124,675 shares in 2007 versus 341,048,210shares in 2006), recurring earnings per share comes out at €5.76 (compared with€4.99 in 2006), and earnings per share comes out at €4.05 (compared with €4.80in 2006). Group sales moved up 4.4%, or 5.8% at constant exchange rates. Changes in theGroup structure had a positive 0.7% impact, with contributions from acquisitionscarried out in 2006 and 2007 (essentially in the Building Distribution and CPsectors) just exceeding contributions from companies sold (mainly Calmar on July1st, 2006, Desjonqueres on March 31, 2007, and the Reinforcements & Compositesbusiness on November 1, 2007). On a like-for-like basis*, Group sales advanced5.0% or €2,059 million, including a 3.7% price impact and a 1.3% volume effect. The breakdown of like-for-like sales by geographic area presents a sharplycontrasting picture, with North America (13% of Group sales), declining 7.1%,but the rest of the world delivering sustained sales growth. Sales climbed 5.2%in France (which accounts for 28% of sales for the Group as a whole) and 6.0% inother western European countries (44% of Group sales). Emerging countries andAsia (15% of Group sales) continued to outperform other regions, reportingorganic growth of 16.5%. * Based on average exchange rates for 2006 Operating income jumped 10.6%, or 11.4% at constant exchange rates*. The Group'soperating margin, which notched up gains in each half of the year, advanced to9.5% of sales (12.0% excluding Building Distribution), compared with 8.9% ofsales in 2006 (10.9% excluding Building Distribution). With the exception ofNorth America, profitability improved across all geographic areas. Non-operating costs came in at €984 million (versus €367 million in 2006), andinclude a €200 million charge in respect of industrial restructuring measures, a€90 million charge for asbestos-related litigation involving CertainTeed in theUS (versus €272 million and €95 million, respectively, in 2006) and a €694million provision in respect of the two proceedings conducted by the EuropeanCommission into the Flat Glass sector (see the section entitled "EuropeanCommission proceedings" below). The net total of capital gains and losses and exceptional asset write-downs camein at €30 million, versus a negative €27 million in 2006. Capital gains of €394million, arising mainly on the sale of Desjonqueres, were partly offset by €364million in exceptional write-downs, including around €190 million in connectionwith the sale of the Reinforcements & Composites business. Business income shed 5% due to the factors mentioned above (non-operating costs,capital gains and losses and exceptional asset write-downs). Net financial expense was scaled back 6.3% to €701 million, compared with €748million in 2006, reflecting chiefly the fall in average net debt over the year.The interest cover ratio (operating income over interest expense) continued toimprove, at 5.9 versus 5 in 2006. Recurring net income (excluding capital gains and losses, exceptional assetwrite-downs and the provision for Flat Glass fines) surged 24.2% to €2,114million, compared with €1,702 million in 2006. Based on the number of sharesoutstanding at December 31, 2007 (374,216,152 shares compared with 368,419,723shares at December 31, 2006), recurring earnings per share comes in at €5.65, up22.3% on 2006 (€4.62). Net income was 9.2% lower year-on-year at €1,487 million, hit by the provisionfor the Flat Glass fines mentioned above. Based on the number of sharesoutstanding at December 31, 2007 (374,216,152 shares compared with 368,419,723shares at December 31, 2006), earnings per share comes in at €3.97, down 10.6%on 2006 (€4.44). Capital expenditure edged up 3.7% to €2,273 million in 2007 (€2,191 million in2006), and represented 5.2% of sales (5.3% in 2006). The Group continues tofocus its investments on emerging countries (40% of growth investments) and onmarkets linked to energy efficiency (in particular Flat Glass and CP sectors,representing more than 50% of investment outlay). Cash flow from operations (excluding provision for the Flat Glass fines) came in12.4% higher year-on-year, at €3,762 million. Before the tax impact of capitalgains and losses and asset write-downs, cash flow from operations climbed 10%,to €3,712 million, compared with €3,374 million in 2006. Free cash flow (cash flow from operations less capital expenditure) surged 28.8%to €1,489 million. Before the tax impact of capital gains and losses and assetwrite-downs, free cash flow moved up 21.6% to €1,439 million. Investments in securities amounted to €965 million in 2007. This figure does notinclude the Maxit acquisition, which was announced in August and is pendingapproval from the European competition authorities. Investments totaled €582million for the Building Distribution sector (53 acquisitions representing€1,304 million in full-year sales), and €226 million for the ConstructionProducts business. Net debt before the acquisition of Maxit stands at €9,928 million at December31, 2007, down 14.4% on end-2006 (€11,599 million) and 17.3% on June 30, 2007.At end-December 2007, 88% of the Group's debt was at fixed rates, and had anaverage maturity of five years. Net debt represents 65% of consolidatedshareholders' equity, compared with 80% at December 31, 2007. * Based on average exchange rates for 2006 * * * Update on asbestos claims in the United States Some 6,000 claims were filed against CertainTeed in 2007, versus 7,000 in 2006.Around 8,000 claims were settled over the period, bringing the number ofoutstanding claims to 74,000 at December 31, 2007, compared with 76,000 atend-2006. A total of USD 73 million indemnity payments were paid over the last12 months, compared to USD 83 million over 2006. In light of these trends, an additional provision of €90 million was recorded in2007 (versus €95 million in 2006), increasing the total coverage forCertainTeed's asbestos-related claims to USD 473 million at December 31, 2007,compared to USD 451 million at end-2006. * * * European Commission proceedings (Flat Glass) Further to its investigations in February and March 2005, the EuropeanCommission sent Statements of Objections to Saint-Gobain Glass France (glass forthe construction industry) on March 12, 2007, and to Saint-Gobain Glass France,Saint-Gobain Sekurit Deutschland and Saint-Gobain Sekurit France (automotiveglass) on April 19, 2007. The two Statements of Objections, which were also sentto Compagnie de Saint-Gobain in its capacity as parent company of theseentities, concerned an alleged breach of Article 81 of the Treaty of Rome. In summary, the Statements of Objections claim that the above-mentioned glasssubsidiaries contacted or met with one or more competitors to discuss pricingstrategies or market share stabilization, or to exchange illicit information. Following a review of the case and the objections, Saint-Gobain Glass France didnot challenge the allegations made in respect of its construction glassactivity, while Saint-Gobain Glass France, Saint-Gobain Sekurit Deutschland andSaint-Gobain Sekurit France acknowledged the claims against their automotiveglass businesses but challenge the scope given to certain such claims by theCommission. In their responses to the Commission, the companies concerned nevertheless setforth a series of arguments based on the seriousness and duration of the allegedinfringements, the amount of sales generated by the activities to be taken intoaccount in the claim, and the impact of the repeat offence. Compagnie deSaint-Gobain has formally denied any liability whatsoever for the allegationsmade in the two cases. In a decision of November 28, 2007 concerning its investigation into companiesmanufacturing glass for the construction industry, the European Commission heldthat Saint-Gobain Glass France had indeed violated Article 81 of the Treaty ofRome. Accordingly, Saint-Gobain Glass France was fined, jointly and severallywith Compagnie de Saint-Gobain, an amount of €133.9 million. Compagnie deSaint-Gobain and Saint-Gobain Glass France have decided not to appeal thisdecision. After adjusting the amount of the provision set aside in respect of this finefor Construction Glass, and revising the provision for the automotive glassinvestigation to incorporate a higher sales basis (2007 rather than 2006 sales),the €650 million provision set aside in the first half of 2007 was increased to€694 million at December 31, 2007. Strategy The Group's robust performance in 2007 highlights the efficiency of its businessmodel and the vigorous implementation of its construction-focused growthstrategy, offering innovative solutions to the fundamental challenges of ourtime: growth, energy efficiency and the environment. Following the sale ofCalmar in July 2006 and Desjonqueres in March 2007, the Group sold itsReinforcements & Composites business on November 1, 2007. In parallel, the Groupcarried out 64 acquisitions in the construction market in 2007, representing€1.6 billion in total full-year sales. For 2008 and beyond, the Group intends to press ahead with the strategic focusesunveiled in July 2007, including: - stepping up expansion efforts through growth investments inemerging countries, with the aim of generating 33% of Group sales (excludingBuilding Distribution) in these regions by 2010, - pursuing acquisition-led growth, in particular to deepen theGroup's footprint in emerging countries, enhance its potential for innovationand reinforce Building Distribution, - intensifying R&D initiatives and innovation, particularly in termsof energy and the environment. The Group therefore confirms its targets through 2010: For 2007-2010: - 5% average annual organic growth- 10% average annual growth in recurring EPS (earnings per share) For 2010: - ROI of between 22% and 25%- ROCE of between 13% and 14% 2008 outlook and objectives In 2008, the Group will have to contend with a more difficult and far moreuncertain macro-economic climate than in 2007, with a possible recession for theUS economy and growth in housing starts across Europe losing momentum duechiefly to stricter lending criteria. However, Saint-Gobain is well positionedto face these challenging business conditions: - a strong position on the European building renovation market,- global leadership on markets related to energy efficiency inbuildings, which account for almost 30% of Group sales,- significant contributions from Asia and emerging countries to Groupoperating income (around 20%, i.e. double the North American contribution in2007),- the positive impact on the Group's results of further acquisitions,- a solid financial structure and high levels of free cash flow. In view of the above, for 2008 the Group is targeting: - modest growth in operating income at constant exchange rates (averageexchange rates for 2007) and recurring net income*, - a solid financial structure and continuing high levels of free cashflow. * excluding capital gains, asset write-downs and the €694 million provisionfor Flat Glass fines (European Commission) * * * Forthcoming results announcements - Final results for 2007: March 20, 2008 after close of trading on the ParisBourse. - Sales for the first quarter of 2008: April 22, 2008, after close of trading onthe Paris Bourse. * * * Appendix 1 : Results by Business Sector and geographic area Change Change on Change on on a aI. SALES 2006 2007e an actual comparable comparable (in (in structure structure structure EUR m) EUR m) basis basis and basis currency basisBy sector anddivision:Flat Glass 5,083 5,611 +10.4% +10.5% +11.2%High Performance 4,938 4,752 -3.8% -1.6% +2.2%Materials (1)Ceramics & Plastics 3,589 3,584 -0.1% +0.4% +4.5%and AbrasivesReinforcements (2) 1,365 1,182 -13.4% -7.2% -4.2%Construction 10,876 11,112 +2.2% +0.4% +2.5%Products (1)Interior 6,424 6,628 +3.2% +1.2% +2.9%Solutions (*)Exterior 4,476 4,516 +0.9% -0.7% +2.1%Solutions (*)Building 17,581 19,480 +10.8% +5.7% +5.7%DistributionPackaging (3) 4,080 3,546 -13.1% +2.5% +5.5%Internal sales -962 -1,080 n.m. n.m. n.m.and misc.GROUP TOTAL 41,596 43,421 +4.4% +3.7% +5.0%(1) includingintra-sectoreliminations(2) of which Reinforcements and Composites businesses (sold onNovember 1st, 2007): €671m in 2006 and €593m in 2007 before interbusinesses eliminations(3) of which Desjonqueres (sold on March 31, 2007) and Calmar(sold on July 1, 2006) : €760m in 2006 and €148m in 2007(*) See Appendix 3 for details By geographicarea :France 12,528 12,931 +3.2% +5.2% +5.2%Other Western 18,448 19,905 +7.9% +5.8% +6.0%European countriesNorth America 6,790 5,793 -14.7% -14.6% -7.1%Emerging countries 5,933 6,921 +16.6% +15.7% +16.5%and AsiaInternal sales -2,103 -2,129 n.m. n.m. n.m.GROUP TOTAL 41,596 43,421 +4.4% +3.7% +5.0% Change onII. OPERATING 2006 2007e an actual 2006 2007eINCOME (in (in structure (in % of (in % of EUR m) EUR m) basis sales) sales) By sector anddivision:Flat Glass 480 717 +49.4% 9.4% 12.8%High 500 585 +17.0% 10.1% 12,3%PerformanceMaterialsCeramics & Plastics 468 485 +3.6% 13.0% 13.5%and AbrasivesReinforcements (1) 32 100 n.m. 2.3% 8.5%Construction 1,376 1,313 -4.6% 12.7% 11.8%ProductsInterior 1,028 980 -4.7% 16.0% 14.8%Solutions (*)Exterior 348 333 -4.3% 7.8% 7.4%Solutions (*)Building 1,001 1,102 +10.1% 5.7% 5.7%DistributionPackaging (2) 376 401 +6.6% 9.2% 11.3%Miscellaneous -19 -10 n.m. n.m. n.m.GROUP TOTAL 3,714 4,108 +10.6% 8.9% 9.5%(1) of which Reinforcements and Composites businesses (sold onNovember 1st, 2007): €11m in 2006 and €49m in 2007(2) of which Desjonqueres (sold on March 31, 2007) and Calmar(sold on July 1, 2006) : €72m in 2006 and €23m in 2007(*) SeeAppendix 3 fordetails By geographicarea :France 970 1,096 +13.0% 7.7% 8.5%Other Western 1,506 1,869 +24.1% 8.2% 9.4%European countriesNorth America 701 344 -50.9% 10.3% 5.9%Emerging countries 537 799 +48.8% 9.1% 11.5%and AsiaGROUP TOTAL 3,714 4,108 +10.6% 8.9% 9.5% Change onIII. BUSINESS 2006 2007e an actual 2006 2007eINCOME (in (in structure (in % of (in % of EUR m) EUR m) basis sales) sales) By sector anddivision:Flat Glass 455 -49 n.m. 9.0% -0.9% (a)High 416 333 -20.0% 8.4% 7.0%PerformanceMaterialsCeramics & Plastics 411 482 +17.3% 11.5% 13.4%and AbrasivesReinforcements (1) 5 -149 n.m. 0.4% n.m. (b)Construction 1,229 1,243 +1.1% 11.3% 11.2%ProductsInterior 989 962 -2.7% 15.4% 14.5%Solutions (*)Exterior 240 281 +17.1% 5.4% 6.2%Solutions (*)Building 979 1,069 +9.2% 5.6% 5.5%DistributionPackaging (2) 379 688 n.m. 9.3% n.m. (c)Miscellaneous -136 -128 n.m. n.m. n.m. (d)GROUP TOTAL 3,322 3,156 -5.0% 8.0% 7.3%(a) after a provision of €694m for the flat glass fines (EuropeanCommission)(b) after €190 m of asset write-downs related to the disposal ofthe Reinforcements & Composites businesses(c) after €283m of capital gainsfollowing the disposal ofDesjonqueres(d) after asbestos-related charge (beforetax) of • 90m in 2007 versus €95m in 2006(*) See Appendix 3 for details By geographicarea :France 883 816(a) -7.6% 7.0% 6.3%Other Western 1,457 1,536 +5,4% 7.9% 7.7%European (a)countriesNorth America 481 109(b) -77.3% 7.1% 1.9%Emerging 501 695 +38.7% 8.4% 10.0%countries andAsiaGROUP TOTAL 3,322 3,156 -5.0% 8.0% 7.3%(a) after a provision of €694m for the flat glass fines (EuropeanCommission)(b) after asbestos-related charge (before tax) of •90m in 2007 versus €95m in 2006 Change onIV. CASH FLOW 2006 2007e an actual 2006 2007e (in (in structure (in % of (in % of EUR m) EUR m) sales) sales) basisBy sector anddivision: Flat Glass 529 677 +28.0% 10.4% 12.1%High 432 487 +12.7% 8.7% 10.2%PerformanceMaterialsCeramics & Plastics 363 396 +9.1% 10.1% 11.0%and AbrasivesReinforcements 69 91 +31.9% 5.1% 7.7%(1)Construction 1,048 1,060 +1.1% 9.6% 9.5%ProductsInterior 726 739 +1.8% 11.3% 11.1%Solutions (*)Exterior 322 321 -0.3% 7.2% 7.1%Solutions (*)Building 817 825 +1.0% 4.6% 4.2%DistributionPackaging (2) 402 425 +5.7% 9.9% 12.0%Miscellaneous 119 288 n.m. n.m. n.m.GROUP TOTAL 3,347 3,762 +12.4% 8.0% 8.7%(1) of which Reinforcements and Composites businesses (sold onNovember 1st, 2007): €25m in 2006 and €25m in 2007(2) of which Desjonqueres (sold on March 31, 2007) and Calmar(sold on July 1, 2006) : €63m in 2006 and €14m in 2007(*) SeeAppendix 3 fordetails By geographicarea :France 733 866 +18.1% 5.9% 6.7%Other Western 1,446 1,731 +19.7% 7.8% 8.7%EuropeancountriesNorth America 573 401 -30.0% 8.4% 6.9% (a)Emerging 595 764 +28.4% 10.0% 11.0%countries andAsiaGROUP TOTAL 3,347 3,762 +12.4% 8.0% 8.7%(a) after asbestos-related charge (after tax) of • 55m in 2007versus €64m in 2006 Change onV. CAPITAL 2006 2007e an actual 2006 2007eEXPENDITURE (in (in structure (in % of (in % of EUR m) EUR m) basis sales) sales) By sector anddivision: Flat Glass 448 523 +16.7% 8.8% 9.3%High 225 238 +5.8% 4.6% 5.0%PerformanceMaterialsCeramics & Plastics 161 192 +19.3% 4.5% 5.4%and AbrasivesReinforcements 64 46 -28.1% 4.7% 3.9%(1)Construction 844 830 -1.7% 7.8% 7.5%ProductsInterior 632 621 -1.7% 9.8% 9.4%Solutions (*)Exterior 212 209 -1.4% 4.7% 4.6%Solutions (*)Building 315 353 +12.1% 1.8% 1.8%DistributionPackaging (2) 335 309 -7.8% 8.2% 8.7%Miscellaneous 24 20 n.m. n.m. n.m.GROUP TOTAL 2,191 2,273 +3.7% 5.3% 5.2%(1) of which Reinforcements and Composites businesses (sold onNovember 1st, 2007): €40m in 2006 and €22m in 2007(2) of which Desjonqueres (sold on March 31, 2007) and Calmar(sold on July 1, 2006) : €53m in 2006 and €14m in 2007(*) SeeAppendix 3 fordetails By geographicarea :France 485 536 +10.5% 3.9% 4.1%Other Western 749 698 -6.8% 4.1% 3.5%EuropeancountriesNorth America 363 368 +1.4% 5.3% 6.4%Emerging 594 671 +13.0% 10.0% 9.7%countries andAsiaGROUP TOTAL 2,191 2,273 +3.7% 5.3% 5.2% Appendix 2: Consolidated Balance Sheet in EUR millions Dec 31, 2007 Dec 31, 2006 AssetsGoodwill 9,240 9,327Other intangible assets 3,125 3,202Property, plant and equipment 12,753 12,769Investments in associates 123 238Deferred tax assets 328 348Other non-current assets 472 390 Non-current assets 26,041 26,274 Inventories 5,833 5,629Trade accounts receivable 6,211 6,301Current tax receivable 173 66Other accounts receivable 1,481 1,390Assets held for sale 105 (*) 548Cash and cash equivalents 1,294 1,468 Current assets 15,097 15,402 Total assets 41,138 41,676 Liabilities and Shareholders' equityCapital stock 1,497 1,474Additional paid-in capital and legal reserve 3,617 3,315Retained earnings and net income for the year 10,625 9,562Cumulative translation adjustments (564) 140Fair value reserves 8 (20)Treasury stock (206) (306) Shareholders' equity 14,977 14,165 Minority interests 290 322 Total equity 15,267 14,487 Long-term debt 8,747 9,877Provisions for pensions and other employee benefits 1,807 2,203Deferred tax liabilities 1,277 1,222Provisions for other liabilities and charges 923 936 Non-current liabilities 12,754 14,238 Current portion of long-term debt 971 993Current portion of provisions for other liabilities and charges 1,107 467Trade accounts payable 5,752 5,519Current tax liabilities 317 190Other accounts payable 3,425 3,336Liabilities held for sale 41 (*) 249Short-term debt and bank overdrafts 1,504 2,197 Current liabilities 13,117 12,951 Total equity and liabilities 41,138 41,676 (*) SG VTX America Plastic Appendix 3 : Construction Products sector -details The activities of the Construction Products sector are henceforthpresented in two sub-groups: Interior Solutions, (Insulation andGypsum), and Exterior Solutions, (Building Materials and Pipe). Change on Change on Change on a aI. SALES 2006 2007e an actual comparable comparables (in (in structure structure structure EURm) EURm) basis basis and currency basisInterior Solutions 6,424 6,628 +3.2% +1.2% +2.9%Insulation 2,542 2,785 +9.5% +1.9% +3.8%Gypsum 3,895 3,864 -0.8% +0.9% +2.5%internal sales -13 -21 n.m. n.m. n.m.Exterior Solutions 4,476 4,516 +0.9% -0.7% +2.1%Building Materials 2,694 2,603 -3.4% -5.2% -0.9%Pipe 1,783 1,913 +7.3% +5.9% +6.4%internal sales -1 - n.m. n.m. n.m.Eliminations -24 -32 n.m. n.m. n.m.Construction Products 10,876 11,112 +2.2% +0.4% +2.5%sector Change onII. OPERATING INCOME 2006 2007e an actual 2006 2007e (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 1,028 980 -4.7% 16.0% 14.8%Insulation 379 442 +16.6% 14.9% 15.9%Gypsum 649 538 -17.1% 16.7% 13.9%Exterior Solutions 348 333 -4.3% 7.8% 7.4%Building Materials 208 167 -19.7% 7.7% 6.4%Pipe 140 166 +18.6% 7.9% 8.7%Construction Products 1,376 1,313 -4.6% 12.7% 11.8%sector Change onIII. BUSINESS INCOME 2006 2007e an actual 2006 2007e (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 989 962 -2.7% 15.4% 14.5%Insulation 341 430 +26.1% 13.4% 15.4%Gypsum 648 532 -17.9% 16.6% 13.8%Exterior Solutions 240 281 +17.1% 5.4% 6.2%Building Materials 170 129 -24.1% 6.3% 5.0%Pipe 70 152 +117.1% 3.9% 7.9%Construction Products 1,229 1,243 +1.1% 11.3% 11.2%sector Change onIV. CASH FLOW 2006 2007e an actual 2006 2007e (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 726 739 +1.8% 11.3% 11.1%Insulation 358 447 +24.9% 14.1% 16.1%Gypsum 368 292 -20.7% 9.4% 7.6%Exterior Solutions 322 321 -0.3% 7.2% 7.1%Building Materials 204 175 -14.2% 7.6% 6.7%Pipe 118 146 +23.7% 6.6% 7.6%Construction Products 1,048 1,060 +1.1% 9.6% 9.5%sector Change onV. CAPITAL EXPENDITURE 2006 2007e an actual 2006 2007e (in (in structure (as % of (as % of EURm) EURm) basis sales) sales) Interior Solutions 632 621 -1.7% 9.8% 9.4%Insulation 145 199 +37.2% 5.7% 7.1%Gypsum 487 422 -13.3% 12.5% 10.9%Exterior Solutions 212 209 -1.4% 4.7% 4.6%Building Materials 142 133 -6.3% 5.3% 5.1%Pipe 70 76 +8.6% 3.9% 4.0%Construction Products 844 830 -1.7% 7.8% 7.5%sector Investor Relations Department Mrs Florence Triou-Teixeira Tel.: +33 1 47 62 45 19Mr Alexandre Etuy Tel.: +33 1 47 62 37 15Mr Vivien Dardel Tel.: +33 1 47 32 44 29 Fax.: +33 1 47 62 50 62 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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