Final Results

Compagnie de Saint-Gobain
21 March 2003





 press
      release



                FINAL RESULTS FOR 2002:

                . STRONG OPERATING PERFORMANCE:


                - Sales up 1.1% on a comparable basis

                - Operating income advances 0.2% on a comparable basis

                - Operating margin holds firm at 8.5%

                - Strong free cash flow, at EUR 1,257 million (excluding taxes on capital gains).


                . NET INCOME (excluding capital gains) remains stable at EUR 1,051 million.


                . NET DEBT FALLS 10% to EUR 7 billion.


                . DIVIDEND RECOMMENDED FOR APPROVAL BY THE AGM:
                  euro 1.13 per share, up 0.4%






At its meeting of Thursday, March 20, 2003, the Board of Directors of
Saint-Gobain reviewed the Group's consolidated financial statements for 2002.



Note: Within the Housing Products Sector, the Pipe Division's distribution
operations have been transferred, as from January 1, 2002, to the Building
Materials Distribution Division, in order to set up a European organization for
sales of materials in engineering markets.

This transfer does not affect overall consolidated Group income as presented
below, but it does impact sales and operating income data by division presented
in the Appendix.




The Group's key consolidated data, which confirm the estimates published at the
end of January, are as follows:



                                                                2001              2002               %
                                                                                                  change
                                                          in EUR millions   in EUR millions


Net sales                                                         30,390           30,274           -0.4%
Operating income                                                   2,681            2,582           -3.7%
Dividend income                                                       32               22          -31.3%
Interest and other financial charges, net                           (603)            (504)         -16.4%
Non-operating costs                                                 (122)           (252*)       + 106.6%
Income before profit on sales of non-current assets and            1,988            1,848           -7.0%
taxes
Profit on sales of non-current assets, net                            84                3          -96.4%
Provision for income tax                                           (721)             (612)         -15.1%
Amortization of goodwill                                           (184)             (169)          -8.2%
Share in net results of equity investees                               7                4          -42.9%
Net income before minority interests                               1,174            1,074           -8.5%
Minority interests                                                   (40)             (34)           -15%
Net income                                                         1,134            1,040*          -8.3%
Earnings per share (in EUR)                                       3.33(1)             3.05          -8.4%
Net income excluding capital gains                                 1,057             1,051*         -0.6%
Earnings per share excluding capital gains (in EUR)               3.10(1)             3.08          -0.6%
Cash flow from operations                                          2,733             2,673*         -2.2%
Cash flow excluding capital gains                                  2,765             2,688*         -2.8%
Capital expenditure                                                1,430             1,431           0,1%
Investments in securities                                            848               789          -7.0%
Net debt                                                           7,792             7,012           -10%




* of which charge for CertainTeed asbestos-related litigation: EUR 100 million,
before tax.



(1)    EPS for 2001 has been restated to take into account the four-for-one
stock split carried out on June 27, 2002.





Saint-Gobain's 2002 performance, achieved against the backdrop of a challenging
economic environment, testifies to the Group's resilience and its swift reaction
to changing business conditions.



The Glass Sector posted the strongest like-for-like growth within the Group in
2002, driven by high sales volumes across the board. Profitability eased back
slightly however, due to a contraction in sales prices in the Flat Glass and
Insulation/Reinforcements divisions which could not be offset by the significant
increase in earnings for Containers.



Business and earnings in the High-Performance Materials Sector - which slowed
considerably during the first half - continued to contract in the second half of
the year, albeit less significantly. Markets linked to industrial investment
remain severely depressed both in Europe and the United States and the
electronics market has not yet shown any tangible signs of recovery.



The Housing Products Sector continued down the same growth track as in the first
half, slightly outstripping average growth for the Group as a whole and boosting
profitability. The Building Materials division reaped the benefits of the
buoyant construction market in the United States. The Building Materials
Distribution division continued to expand, fuelled by organic growth and bolt-on
acquisitions, and continued to leverage synergies. Operating margin for the
division surged to 4.9%, from 4.5% in 2001 (pro forma, including full-year
contributions from pipe distribution operations). Full-year Pipe division sales
slipped slightly however, but the division reported a strong recovery in the
fourth quarter, led by the first deliveries under the Abu Dhabi contract.



                          *             *                *



Asbestos claims in the United States: The number of new claims filed against
CertainTeed in 2002 was slightly higher than in 2001 (67,000 compared with
60,000). This increase was due to an exceptional surge in the number of claims
filed in Mississippi at the end of the year following the introduction of a new
law more favorable to defendants as from January 1, 2003.

44,000 claims were settled during the year, leaving approximately 107,000
outstanding claims at December 31, 2002.

At December 31, 2002 the Group's total cover for asbestos-related claims against
CertainTeed amounted to EUR 426 million (USD 447 million), comprised of
insurance policies and provisions, including the EUR 100 million charge booked
in 2002. This cover represents approximately 4 to 5 years of indemnity payments
at the current rate.

In 2003, several factors may have a positive impact on the number of new claims
filed, particularly newly introduced or expected amendments to legislation in
certain states.



                             *             *             *



Analysis of the Group's 2002 key consolidated data:



Group sales dipped 0.4% in 2002. Based on a comparable Group structure, sales
contracted 1.8% in euros and increased 1.1% in local currencies. This rise was
mainly attributable to higher sales prices  in most of the Group's divisions (up
1.1% overall). Sales volumes, which declined slightly over the first nine months
of the year, were unchanged for the year as a whole, after a recovery in the
fourth quarter.

France accounted for 30% of total sales, with other European countries
contributing 41.5%, North America 21.5% and other countries 7.0%.



Operating income contracted 3.7%, but rose 0.2% on a comparable structure and
exchange rate basis. Operating margin was 8.5% compared with 8.8% in 2001. The
change was wholly due to a sharp decrease in profitability for the
High-Performance Materials Sector. The modest drop in margins for the Flat Glass
and Insulation/Reinforcements divisions was more than offset by growth reported
by most of the other Group divisions.

Profitability increased in North America, Brazil, the United Kingdom and Spain,
but lost ground in other European countries.



Net interest and other financial charges fell 16.4%, mainly thanks to a
reduction in both net debt and interest rates, combined with the impact of a
weaker US dollar against the euro during the second half of the year. Interest
expense was covered 5.1 times by operating income for the year ended December
31, 2002, compared with 4.4 times for the prior year.



Non-operating costs stood at EUR 252 million in 2002, compared with EUR 122
million in 2001. This increase was primarily due to a EUR 100 million charge
recorded for CertainTeed asbestos-related litigation in the United States and,
to a lesser extent, to an increase in reorganization costs for the
High-Performance Materials Sector.



Profit on sales of non-current assets amounted to EUR 3 million. Capital gains
made on the disposal of certain non-strategic Group assets were almost totally
offset by capital losses and asset write-downs.



Goodwill amortization dropped 8.2%, as the Group wrote off in full certain cases
of badwill.



Minority interests fell 15%, reflecting the purchase of minority interests in
Saint-Gobain Cristaleria and several Brazilian subsidiaries in 2001 and in
Lapeyre in 2002.



Net income contracted 8.3% in 2002 to EUR 1,040 million. Based on the
341,010,680 shares outstanding at December 31, 2002, earnings per share (EPS)
amounted to EUR 3.05, an 8.4% contraction from EUR 3.33 in 2001. In line with
the commitments made by the Group, new shares issued in the course of the year
(in particular those issued under the Group Savings Plan) were offset at the end
of the year by the cancellation of an equivalent number of shares. Total capital
stock at December 31, 2002 was therefore practically unchanged in relation to
December 31, 2001 (341,034,512 shares adjusted for impact of the June 27, 2002
stock split).



Excluding profit on sales of non-current assets, net income came to EUR 1,051
million, only 0.6% lower than the EUR 1,057 million recorded in 2001. Based on
the 341,010,680 shares outstanding at December 31, 2002, earnings per share
excluding capital gains dipped 0.6% to EUR 3.08 compared with the 2001 figure of
EUR 3.10.



Excluding both capital gains and the asbestos-related charge, net income would
be up 5.7%.



Cash flow from operations inched back to EUR 2,673 million, after the EUR 100
million Certain Teed asbestos-related litigation charge (before tax) in the
United States, down 2.2% against the previous year. Excluding the EUR 15 million
in tax on profit on sales of non-current assets, cash flow from operations
contracted by 2.8% to EUR 2,688 million, compared with EUR 2,765 million in
2001.



Capital expenditure on plant and equipment came to EUR 1,431 million, on a par
with the 2001 figure of EUR 1,430 million, and represented 4.7% of sales, as in
2001.



Free cash flow (cash flow minus capital expenditure on plant and equipment)
totaled EUR 1,242 million compared with EUR 1,303 million a year earlier.
Excluding the EUR 15 million in tax on profit on sales of non-current assets,
free cash flow stood at EUR 1,257 million, 5.8% lower than the 2001 figure of
EUR 1,335 million.



Investments in securities totaled EUR 789 million, including EUR 350 million for
the purchase of minority interests in Lapeyre and EUR 159 million for share
buybacks.



Net debt (excluding financial instruments) stood at EUR 7 billion at December
31, 2002, down 10% on the prior-year figure.




                           *             *              *


Annual General Meeting



The Board of Directors also reviewed the accounts of Compagnie de Saint-Gobain,
the parent company. Net income amounted to EUR 596 million for the year ended
December 31, 2002, against EUR 1,093 million for 2001.



At the General Meeting of the Company's shareholders, called for June 5, 2003,
the Board will recommend the distribution of EUR 380 million (which accounts for
36.2% of net income excluding capital gains), against EUR 378 million last year.
The dividend per share would therefore amount to EUR 1.13, an increase of 0.4%
over last year. To this would be added a tax credit of EUR 0.565, giving a total
of EUR 1.695 per share. Based on today's closing share price, this dividend
represents a gross yield of 6.7%. The dividend will be paid entirely in cash as
from June 23, 2003.



In addition, the Board of Directors will recommend that the General Meeting
confirm the November 21, 2002 appointment as director of Sehoon Lee, Co-Chairman
of the South Korean companies Hankuk Glass Industries and Hankuk Sekurit. The
General Meeting will also be asked to re-elect as director Gerard Mestrallet,
Chairman and Chief Executive Officer of Suez, and to elect as director Paul
Kerhuel, Chairman of the Saint-Gobain employee-shareholders Association, to
replace Jean-Maurice Malot, and Denis Ranque, Chairman and Chief Executive
Officer of Thales, to replace Mr Bernard Esambert, whose term expires at the
meeting and is not seeking re-election.




                         *             *             *



Outlook: the current geopolitical events give rise to significant uncertainty as
regards global economic trends. During the two first months of the year, Group
sales have been in line with the target of moderate growth for the full year,
despite increased exchange-rate fluctuation.





                        *             *               *



Next results announcements:



-          First quarter 2003 sales: Thursday, April 24, 2003, after the close
of the Paris Stock Exchange;

-      Final results for the first half of 2003: Thursday July 24, 2003, after
the close of the Paris Stock Exchange;





March 20, 2003.



                         Investor Relations Department


Tel.: Florence TRIOU-TEIXEIRA [phone] - mailto:  [e-mail]
Tel.: Alexandre ETUY          [phone] - mailto: [e-mail]

                                Fax: [phone]







Appendix:

Results by Business Sector, Division and Geographic Area
(in millions of euros)



                                                                change on     change on a       change on
I. SALES                                    2001       2002      an actual     comparable      a comparable
                                                                structure   structure basis   structure and
                                                                   basis        in euros      currency basis
1degrees)By sector and division:
Glass (1)                                  11,813     11,818      +0.0%          -0.8%            +2.8%
Flat Glass                                 4,478      4,423       -1.2%          -1.3%            +2.3%
Insulation and Reinforcements              3,274      3,329       +1.7%          -0.8%            +1.6%
Containers                                 4,070      4,076       +0.1%          +0.0%            +4.3%
High-Performance Materials (1)             4,018      3,637       -9.5%          -9.3%            -4.8%
Ceramics and Plastics & Abrasives          4,018      3,637       -9.5%          -9.3%            -4.8%
Housing Products (1)                       14,824     15,102      +1.9%          -0.5%            +1.3%
Building Materials                         3,184      3,074       -3.5%          -3.5%            +1.9%
Building Materials Distribution proforma   10,521     10,953      +4.1%          +0.8%            +1.5%
- (a)
Building Materials Distribution proforma   10,061     10,533      +4.7%          +1.7%            +2.4%
- (b)
Pipe proforma-(a)                          1,397      1,344       -3.8%          -3.8%            -2.2%
Pipe proforma-(b)                          1,782      1,710       -4.0%          -4.0%            -3.9%
Internal sales                              -265       -283
2degrees)By geographical area:
France                                     9,095      9,439       +3.8%          +2.0%            +2.0%
Other European Countries                   12,944     13,068      +1.0%          -1.3%            -1.2%
North America                              7,180      6,785       -5.5%          -4.6%            +0.7%
Rest of the world                          2,293      2,195       -4.3%          -7.0%            +15.2%
Internal sales                             -1,122     -1,213
GROUP TOTAL                                30,390     30,274      -0.4%          -1.8%            +1.1%

(1) including inter-division eliminations
(a 2001 proforma including the Pipe Distribution activity in the Building Materials Distribution Division
(b) 2002 proforma including the Pipe Distribution Activity in the Pipe Division





II. OPERATING INCOME                        2001       2002       change

1degrees)By sector and division:
Glass                                      1,357      1,325       -2.4%
Flat Glass                                  551        495        -10.2%
Insulation and Reinforcements               402        351        -12.7%
Containers                                  404        479        +18.6%
High-Performance Materials                  392        244        -37.8%
Ceramics and Plastics & Abrasives           392        244        -37.8%
Housing Products                            915       1,004       +9.7%
Building Materials                          294        335        +13.9%
Building Materials Distribution proforma    475        534        +12.4%
- (a)
Building Materials Distribution proforma    490        539        +10.0%
- (b)
Pipe proforma-(a)                           146        135        -7.5%
Pipe proforma-(b)                           131        130        -0.8%
2degrees)By geographical area:
France                                      870        841        -3.3%
Other European Countries                    979        923        -5.7%
North America                               580        586        +1.0%
Rest of the world                           252        232        -7.9%
GROUP TOTAL                                2,681      2,582       -3.7%

(a 2001 proforma including the Pipe Distribution activity in the Building Materials Distribution Division
(b) 2002 proforma including the Pipe Distribution Activity in the Pipe Division




III. CASH FLOW                              2001       2002       change

1degrees)By sector and division:
Glass                                      1,560      1,614       +3.5%
Flat Glass                                  613        622        +1.5%
Insulation and Reinforcements               448        436        -2.7%
Containers                                  499        556        +11.4%
High-Performance Materials                  330        246        -25.5%
Ceramics and Plastics & Abrasives           330        246        -25.5%
Housing Products                            768        814        +6.0%
Building Materials                          297        247*       -16.8%
Building Materials Distribution proforma    321        414        +29.0%
- (a)
Building Materials Distribution proforma    339        420        +23.9%
- (b)
Pipe proforma-(a)                           150        153        +2.0%
Pipe proforma-(b)                           132        147        +11.4%
2degrees)By geographical area:
France                                      797        794        -0.4%
Other European Countries                   1,024      1,050       +2.5%
North America                               593        513        -13.5%
Rest of the world                           319        316        -0.9%
GROUP TOTAL                                2,733      2,673       -2.2%

(a 2001 proforma including the Pipe Distribution activity in the Building Materials Distribution Division
(b) 2002 proforma including the Pipe Distribution Activity in the Pipe Division

* after the CertainTeed asbestos-related charge of EUR 100 m before tax


IV. CAPITAL EXPENDITURE                     2001       2002       change
ON PLANT AND EQUIPMENT
1degrees)By sector and division:
Glass                                       827        869        +5.1%
Flat Glass                                  361        377        +4.4%
Insulation and Reinforcements               229        198        -13.5%
Containers                                  237        294        +24.1%
High-Performance Materials                  173        160        -7.5%
Ceramics and Plastics & Abrasives           173        160        -7.5%
Housing Products                            429        401        -6.5%
Building Materials                          134        135        +0.7%
Building Materials Distribution proforma    252        227        -9.9%
- (a)
Building Materials Distribution proforma    247        224        -9.3%
- (b)
Pipe proforma-(a)                            43         39        -9.3%
Pipe proforma-(b)                            48         42        -12.5%
2degrees)By geographical area:
France                                      368        309        -16.0%
Other European Countries                    534        575        +7.7%
North America                               316        316        +0.0%
Rest of the world                           212        231        +9.0%
GROUP TOTAL                                1,430      1 431       +0.1%

(a 2001 proforma including the Pipe Distribution activity in the Building Materials Distribution Division
(b) 2002 proforma including the Pipe Distribution Activity in the Pipe Division






press
    release





                      Saint-Gobain's acquisitions in 2002:
  Expenditure of EUR 232 million for additional sales of about EUR 546 million



The purpose of this press release is to recapitulate the acquisitions (not
including buybacks of Compagnie de Saint-Gobain stock) carried out by the Group
in 2002, particularly those which were not specifically announced at the time.
The sales figures provided below are based on estimated full-year data for 2002.



The Group continued to pursue its external growth strategy in 2002, through 56
transactions, most of them bolt-on acquisitions in Building Materials
Distribution. These acquisitions represented an aggregate investment in
securities or assets of EUR 232 million, for additional full-year sales of
approximately EUR 546 million. The net debt acquired in connection with these
transactions totaled EUR 19 million.



In line with the Group's development strategy, the majority of these
acquisitions concerned the high-growth businesses, Building Materials
Distribution as well as Ceramics and Composites. Investment in these two areas
totaled EUR 198 million, for additional full-year sales of EUR 486 million.



The Group also bought out all minority interests in its listed subsidiary
Lapeyre, for a total outlay of EUR 350 million, as well as most minority
shareholders of Construmega in Brazil, which is also part of the Building
Materials Distribution division.




•        Building Materials Distribution: acquisitions of EUR 117 million for
additional annual sales of EUR 382 million



In 2002, the Division continued its external growth through 41 bolt-on
acquisitions in France, the United Kingdom, Germany and the Netherlands. 



France:



The Point P group carried out 24 external growth operations, adding EUR 186
million to its full-year sales.



Point P acquired the following companies, which brought 56 sales outlets:



-         several general distributors (total sales acquired came to EUR 100
million), among them CBA in Southwestern France, Lexcellent and Bial
Weimerkirsch (Eastern France), Rosset (region of Lyon) and Audouard (South);



-         specialized traders (total sales acquired totaling EUR 86 million),
such as:



•         in Interior Decoration: Isopar (mainly in the Paris area) and Negoce
de l'equipement (Paris area)

•         In Civil Engineering/Sealing Materials: Comptoir Materiaux Modernes
(Paris area)

•         In Heavy Construction and Ready-mixed Concrete: BCIO (Brittany,
Western France), Benez (Central France).



United Kingdom:



Drawing upon the Point P business model, Saint Gobain Building Distribution
carried out several bolt-on acquisitions in the United Kingdom. Ten companies
were bought in 2002, representing full-year sales of EUR 93 million at 25 sales
outlets.



These businesses are mainly specialized traders: Merton Timber and Morgan Timber
& Boards in Wood/Paneling/Carpentry, Ceramic Tile Distributors in Ceramic
Tiling, Neville Lumb & Cowen Baratt in Plumbing & Heating. A few general
distributors were also acquired, among them EGN Services, North Staffs Builders'
Merchants.



Netherlands and Germany:



In the Netherlands, Raab Karcher took over Van Ditshuizen, a general distributor
with sales of EUR 36 million and four sales centers.



In Germany, 6 external growth transactions brought in sales of EUR 67 million
and 11 outlets, with the general distributors Pellen and Weingart as well as
Terdenge & Moller, a company specialized in ceramic tiles. Five outlets were
also purchased from the Muhl group.




•        Ceramics and Composites: acquisitions of EUR 81 million for additional
annual sales of EUR 104 million



In Ceramics & Plastics: EUR 18 million invested



The Division continued to bolster its positions, particularly in emerging
countries, with the following highlights:



-         In Venezuela, the purchase of the assets of Silicon Carbide de
Venezuela was finalized.



-         In India, Palakkad-based CUMI Universal sold its fused-cast ceramics
plant to the Division.



-         In Germany, the Division bought the MWK group's Silicon Carbide
operations, which generate sales of EUR 13 million.





In Reinforcements: EUR 63 million invested



The Group signed an agreement giving it a majority stake in a division of Nippon
Sheet Glass in Japan, bringing EUR 78 million in annual sales.




•        Historic businesses: acquisitions of EUR 34 million for additional
annual sales of EUR 60 million



For the historic businesses, acquisitions are used to extend the Group's reach
in emerging countries and/or in downstream operations, as required by the
strategic focuses that have been set out by the Group.



The main transactions have concerned the following divisions:



Flat Glass: EUR 10 million invested



In the United Kingdom, Saint-Gobain, through its Solaglas subsidiary, acquired
Windowcare UK, a market leader in the field of window frame repairs, working
with PVC, aluminum and wood materials.



Building Materials: EUR 18 million invested



Saint-Gobain Weber took over Batec in Romania, a company specialized in glues
for ceramic tiling. In the Netherlands, Saint-Gobain Weber acquired Metzger,
which produces powders.



In the United States, CertainTeed brought into its fold the California-based
windows manufacturer Marshall Vinyl Windows.





March 20, 2003





                         Investor Relations Department



Tel. : Florence TRIOU-TEIXEIRA   [phone] - mailto: [e-mail]
Tel. : Alexandre ETUY            [phone] - mailto: [e-mail]

                                     Fax : [phone]






                      This information is provided by RNS
            The company news service from the London Stock Exchange