Final results for 2007: confirmation of the figures published at the end of January 2008

March 20, 2008





FINAL RESULTS FOR 2007: CONFIRMATION OF THE FIGURES PUBLISHED AT THE END OF JANUARY 2008

Strong upswing in 2007 results outperforming targets

► 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 Flat Glass fines (European Commission)


2008 objectives: continuing growth drive

► MODEST GROWTH IN OPERATING INCOME (at constant exchange rates*) AND RECURRING NET INCOME**


* based on average exchange rates for 2007
* * ** excluding capital gains, asset write-downs and the Flat Glass fines (European Commission)

2007 DIVIDEND***: €2.05 PER SHARE, UP 20.6%

*** dividend recommended by the Board of Directors for 2007 to be put to the vote of the Annual General Meeting on June 5, 2008




The Group’s 2007 consolidated financial statements were adopted by Saint-Gobain’s Board of Directors at its meeting of Thursday March 20, 2008.


2007 consolidated financial statements

The key consolidated data for the Group, as well as the results by business sector and geographical area set out in the appendix, are the same as the estimated figures published at the end of January (**), and are summarized below:

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 asset write-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 weighted average number of shares outstanding (367,124,675 shares in 2007 versus 341,048,210 shares 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 €4.80 in 2006).

All of the comments published at the end of January (**) regarding the Group’s consolidated financial statements therefore apply to the final figures.



(**) The press release published at the end of January 2008 detailing the Group’s estimated 2007 results is available on the Saint-Gobain website (www.saint-gobain.com).


Annual General Meeting

The Board of Directors also adopted the accounts of Compagnie de Saint-Gobain, the Group’s parent company.

At the Annual General Meeting called for June 5, 2008, the Board will recommend a dividend payout of €758* million, representing 36% of recurring net income, and equivalent to a dividend per share of €2.05, up 20.6% on 2006. Based on the closing share price on March 20, 2008 (€47.47), this dividend would represent a net yield of 4.3%. The dividend will be paid entirely in cash on June 19, 2008.

* This amount is based on the number of shares with dividend right as of February 29, 2008



2008 outlook and objectives

The Group confirms its objectives as published at the end of January 2008:

- modest growth in operating income at constant exchange rates (average exchange rates for 2007) and recurring net income**;

- a solid financial structure and continuing high levels of free cash flow.

** excluding capital gains, asset write-downs and Flat Glass fines (European Commission)



Forthcoming results announcement

- Sales for the first quarter of 2008: April 22, 2008, after close of trading on the Paris Bourse.


* * *

Investor Relations Department

Florence Triou-Teixeira Tel.: +33 1 47 62 45 19
Alexandre Etuy Tel.: +33 1 47 62 37 15
Vivien Dardel Tel.: +33 1 47 62 44 29
Fax: +33 1 47 62 50 62


Appendix 1 : Results by Business Sector and geographic area






Change on Change on a Change on a
I. SALES 2006 2007 an actual comparable comparable
(in EUR m) (in EUR m) structure structure structure and
basis basis currency
basis
By sector and division:
Flat Glass 5,083 5,611 +10.4% +10.5% +11.2%
High Performance Materials (1) 4,938 4,752 -3.8% -1.6% +2.2%
Ceramics & Plastics and Abrasives 3,589 3,584 -0.1% +0.4% +4.5%
Reinforcements (2) 1,365 1,182 -13.4% -7.2% -4.2%
Construction Products (1) 10,876 11,112 +2.2% +0.4% +2.5%
Interior Solutions (*) 6,424 6,628 +3.2% +1.2% +2.9%
Exterior Solutions (*) 4,476 4,516 +0.9% -0.7% +2.1%
Building Distribution 17,581 19,480 +10.8% +5.7% +5.7%
Packaging (3) 4,080 3,546 -13.1% +2.5% +5.5%
Internal sales and misc. -962 -1,080 n.m. n.m. n.m.
GROUP TOTAL 41,596 43,421 +4.4% +3.7% +5.0%
(1) including intra-sector eliminations
(2) of which Reinforcements and Composites businesses (sold on November 1st, 2007): €671m in 2006 and €593m in 2007 before inter businesses eliminations
(3) of which Desjonquères (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 geographic area :
France 12,528 12,931 +3.2% +5.2% +5.2%
Other Western European countries 18,448 19,905 +7.9% +5.8% +6.0%
North America 6,790 5,793 -14.7% -14.6% -7.1%
Emerging countries and Asia 5,933 6,921 +16.7% +15.7% +16.5%
Internal sales -2,103 -2,129 n.m. n.m. n.m.
GROUP TOTAL 41,596 43,421 +4.4% +3.7% +5.0%





Change on
II. OPERATING INCOME 2006 2007 an actual 2006 2007
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:
Flat Glass 480 717 +49.4% 9.4% 12.8%
High Performance Materials 500 585 +17.0% 10.1% 12,3%
Ceramics & Plastics and Abrasives 468 485 +3.6% 13.0% 13.5%
Reinforcements (1) 32 100 n.m. 2.3% 8.5%
Construction Products 1,376 1,313 -4.6% 12.7% 11.8%
Interior Solutions (*) 1,028 980 -4.7% 16.0% 14.8%
Exterior Solutions (*) 348 333 -4.3% 7.8% 7.4%
Building Distribution 1,001 1,102 +10.1% 5.7% 5.7%
Packaging (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 on November 1st, 2007): €11m in 2006 and €49m in 2007
(2) of which Desjonquères (sold on March 31, 2007) and Calmar (sold on July 1, 2006) : €72m in 2006 and €23m in 2007
(*) See Appendix 3 for details

By geographic area :
France 970 1,096 +13.0% 7.7% 8.5%
Other Western European countries 1,506 1,869 +24.1% 8.2% 9.4%
North America 701 344 -50.9% 10.3% 5.9%
Emerging countries and Asia 537 799 +48.8% 9.1% 11.5%
GROUP TOTAL 3,714 4,108 +10.6% 8.9% 9.5%

Change on
III. BUSINESS INCOME 2006 2007 an actual 2006 2007
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:
Flat Glass 455 -49 (a) n.m. 9.0% -0.9%
High Performance Materials 416 333 -20.0% 8.4% 7.0%
Ceramics & Plastics and Abrasives 411 482 +17.3% 11.5% 13.4%
Reinforcements (1) 5 -149 (b) n.m. 0.4% n.m.
Construction Products 1,229 1,243 +1.1% 11.3% 11.2%
Interior Solutions (*) 989 962 -2.7% 15.4% 14.5%
Exterior Solutions (*) 240 281 +17.1% 5.4% 6.2%
Building Distribution 979 1,069 +9.2% 5.6% 5.5%
Packaging (2) 379 688 (c) n.m. 9.3% n.m.
Miscellaneous -136 -128 (d) n.m. n.m. n.m.
GROUP TOTAL 3,322 3,156 -5.0% 8.0% 7.3%
(a) after a provision of €694m for the flat glass fines (European Commission)
(b) after €190 m of asset write-downs related to the disposal of the Reinforcements & Composites businesses
(c) after €283m of capital gains following the disposal of Desjonquères
(d) after asbestos-related charge (before tax) of € 90m in 2007 versus €95m in 2006
(*) See Appendix 3 for details

By geographic area :
France 883 816(a) -7.6% 7.0% 6.3%
Other Western European countries 1,457 1,536(a) +5,4% 7.9% 7.7%
North America 481 109(b) -77.3% 7.1% 1.9%
Emerging countries and Asia 501 695 +38.7% 8.4% 10.0%
GROUP TOTAL 3,322 3,156 -5.0% 8.0% 7.3%
(a) after a provision of €694m for the flat glass fines (European Commission)
(b) after asbestos-related charge (before tax) of € 90m in 2007 versus €95m in 2006

Change on
IV. CASH FLOW 2006 2007 an actual 2006 2007
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:

Flat Glass 529 677 +28.0% 10.4% 12.1%
High Performance Materials 432 487 +12.7% 8.7% 10.2%
Ceramics & Plastics and Abrasives 363 396 +9.1% 10.1% 11.0%
Reinforcements (1) 69 91 +31.9% 5.1% 7.7%
Construction Products 1,048 1,060 +1.1% 9.6% 9.5%
Interior Solutions (*) 726 739 +1.8% 11.3% 11.1%
Exterior Solutions (*) 322 321 -0.3% 7.2% 7.1%
Building Distribution 817 825 +1.0% 4.6% 4.2%
Packaging (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 on November 1st, 2007): €25m in 2006 and €25m in 2007
(2) of which Desjonquères (sold on March 31, 2007) and Calmar (sold on July 1, 2006) : €63m in 2006 and €14m in 2007
(*) See Appendix 3 for details

By geographic area :
France 733 866 +18.1% 5.9% 6.7%
Other Western European countries 1,446 1,731 +19.7% 7.8% 8.7%
North America 573 401 (a) -30.0% 8.4% 6.9%
Emerging countries and Asia 595 764 +28.4% 10.0% 11.0%
GROUP TOTAL 3,347 3,762 +12.4% 8.0% 8.7%
(a) after asbestos-related charge (after tax) of € 55m in 2007 versus €64m in 2006

Change on
V. CAPITAL EXPENDITURE 2006 2007 an actual 2006 2007
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:

Flat Glass 448 523 +16.7% 8.8% 9.3%
High Performance Materials 225 238 +5.8% 4.6% 5.0%
Ceramics & Plastics and Abrasives 161 192 +19.3% 4.5% 5.4%
Reinforcements (1) 64 46 -28.1% 4.7% 3.9%
Construction Products 844 830 -1.7% 7.8% 7.5%
Interior Solutions (*) 632 621 -1.7% 9.8% 9.4%
Exterior Solutions (*) 212 209 -1.4% 4.7% 4.6%
Building Distribution 315 353 +12.1% 1.8% 1.8%
Packaging (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 on November 1st, 2007): €40m in 2006 and €22m in 2007
(2) of which Desjonquères (sold on March 31, 2007) and Calmar (sold on July 1, 2006) : €53m in 2006 and €14m in 2007
(*) See Appendix 3 for details

By geographic area :
France 485 536 +10.5% 3.9% 4.1%
Other Western European countries 749 698 -6.8% 4.1% 3.5%
North America 363 368 +1.4% 5.3% 6.4%
Emerging countries and Asia 594 671 +13.0% 10.0% 9.7%
GROUP 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

Assets
Goodwill 9,240 9,327
Other intangible assets 3,125 3,202
Property, plant and equipment 12,753 12,769
Investments in associates 123 238
Deferred tax assets 328 348
Other non-current assets 472 390

Non-current assets 26,041 26,274

Inventories 5,833 5,629
Trade accounts receivable 6,211 6,301
Current tax receivable 173 66
Other accounts receivable 1,481 1,390
Assets held for sale 105 (*) 548
Cash and cash equivalents 1,294 1,468

Current assets 15,097 15,402

Total assets 41,138 41,676

Liabilities and Shareholders' equity
Capital stock 1,497 1,474
Additional paid-in capital and legal reserve 3,617 3,315
Retained earnings and net income for the year 10,625 9,562
Cumulative translation adjustments (564) 140
Fair 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 9,877
Provisions for pensions and other employee benefits 1,807 2,203
Deferred tax liabilities 1,277 1,222
Provisions for other liabilities and charges 923 936

Non-current liabilities 12,754 14,238

Current portion of long-term debt 971 993
Current portion of provisions for other liabilities and charges 1,107 467
Trade accounts payable 5,752 5,519
Current tax liabilities 317 190
Other accounts payable 3,425 3,336
Liabilities held for sale 41 (*) 249
Short-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 henceforth presented in two sub-groups: Interior Solutions, (Insulation and Gypsum), and Exterior Solutions, (Building Materials and Pipe).

Change on Change on a Change on a
I. SALES 2006 2007 an actual comparable comparables
(in EURm) (in EURm) structure structure structure and
basis basis currency
basis
Interior 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 sector 10,876 11,112 +2.2% +0.4% +2.5%


Change on
II. OPERATING INCOME 2006 2007 an actual 2006 2007
(in EURm) (in EURm) structure (as % of sales) (as % of sales)
basis
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 sector 1,376 1,313 -4.6% 12.7% 11.8%


Change on
III. BUSINESS INCOME 2006 2007 an actual 2006 2007
(in EURm) (in EURm) structure (as % of sales) (as % of sales)
basis
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 sector 1,229 1,243 +1.1% 11.3% 11.2%


Change on
IV. CASH FLOW 2006 2007 an actual 2006 2007
(in EURm) (in EURm) structure (as % of sales) (as % of sales)
basis
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 sector 1,048 1,060 +1.1% 9.6% 9.5%


Change on
V. CAPITAL EXPENDITURE 2006 2007 an actual 2006 2007
(in EURm) (in EURm) structure (as % of sales) (as % of sales)
basis
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 sector 844 830 -1.7% 7.8% 7.5%