Villeroy & Boch...

1. Villeroy & Boch. Bath and Welness DivisionPrior consent required for publication of content or extracts of the presentation.February 2010. 2009 Figures available end March 2010.

2. Villeroy & Boch... • has been a family owned company for 260 years. • was founded in 1748 by François Boch. • is today an international and renowned lifestyle • company offering solutions for private homes • and project business. • has been a public limitedcompany since 1987 and has been listed on the stock exchange since 1990. • is represented in more than 125 countries throughout • the world. Head office / Old Abbey in Mettlach

3. 260 Years Villeroy & Boch. 1748 1836 1766 1809 Beginning of ceramic production in Mettlach. Since 1842 headquarters of the international group. Following amalgamation of the 2 rivals, the company Villeroy & Boch was born. In Septfontaines, not far from the fortress of Luxemburg, the industrial production started. The ceramic manufactory was founded in Lothringen. 1982 1990 1852 1899 Beginning of tile produc- tion, followed by start-up of the mosaic production in Mettlach. Villeroy & Boch is re-structured, decentralised basis; with 3 divisions: sanitary, tiles, tableware/crystal. Start of the large scale produc- tion of sanitary goods in Merzig. Villeroy & Boch starts trading on the stock exchange. 2001 2000 1999 1998 Take-over of the Dutch Co Ucosan Holding. Formation of a new "Wellness" division. Acquisition of a Swedish sanitary and fittings producer by the name of AB Gustavsberg; take-over of Svenska Badkar AB. Take-over of the Austrian bathroom furnishings manufacturer db, the Belgian company Acomo and the Italian company Itema. Lifestyle segmentation. 250th jubilee. Evolution from ceramic producer into a lifestyle supplier with the vision of "My House of Villeroy & Boch". 2004 2005 2006 2002 Organisational restructuring: Integration of the two divisions “Bathroom & Kitchen” and “Tiles”; start-up of Project Business. German Business Innovation Award for NewWave Caffè Consolidation of the “Bath” and “Wellness” divisions. Restructuring of the “Tiles” division into a GmbH. Acquisition of 3 sanitaryware production locations in Mexico 2007 Today • Taking over of 80% of the Thai sanitary manufacturer Nahm Sanitaryware Co. Ltd. • Taking over of the German bath furniture manufacturer Sanipa • 260th jubilee Reorganization of the Villeroy & Boch Fliesen GmbH. Increase in sales and EBIT. Rise of the foreign sales up to 79 %.

4. Divisional Structure. Villeroy & Boch Tiles V&B Fliesen GmbH 49 % Division Bath and Wellness 100 % Division Tableware 100 % Tiles V&B Fliesen GmbH

5. Villeroy & Boch foundations Villeroy & Boch the leading Home Interior & Lifestyle-Brand from Europe 840,9 Mio. € Turnover (2008 only continued opoerations) 10.193 employees (annual Ø) Tablewaresince 1748 Sanitary & Wellnesssince 1848 319,8 Mio. € Turnover 2.894 employees 521,1 Mio. € Turnover6.879 employees 2009 figures will be released after Press conference March 31.

6. Villeroy & Boch Group – Business segmentsTableware is a core segment 2007 Spin-off tile business 15% 34% 38% 62% 51% 52% 14% 24%

7. Introduction: Strategy Architecture. Bathroom & Wellness Tableware Distribution Strategy Assortment Strategy Strategic Cornerstones Internationalization Strategic Goals Profitability (Net profit. ROCE) Strategic BasisCore Competence Vision, Mission, General Guidelines

8. Mission Statement of Villeroy & Boch AG. What we aim to achieve. Vision We turn your place into a captivating quality of live space Mission Steadfastly committed to meeting our customers’ needs, we provide innovative solutions with exceptional quality and service to both end consumers and project partners

9. passionate contemporary artistic cosmopolitan innovative stylish inspiring confident sensual European Culture classical/authentic empathic sustainable functional high value solid reasonable Brand values and attributesall three values have to apply to ensure for a Villeroy & Boch identity

10. Villeroy & Boch Brand Positioning. How the Brand distinguishes itself. Positioning Villeroy & Boch is the leading European premium brand in product areas concerning tableware, kitchens, and bathrooms Benefit With Villeroy & Boch products I can express myself and shape my very personal home; for me, my family and my friends Reason Why As a part of the European culture, Villeroy & Boch, based on its family tradition, cultivates daily life with high quality products for more than 260 years

11. HOME INTERIOR Franchising „the completely laid table“ Tableware, crystal, household accessories CORE COMPE- TENCE CERAMICS TABLEWARE SANITARY TILES Villeroy & Boch Lifestyle in the entire house „the single source bath-room“ Synthetics, fittings, bathroom furniture Project Business Brand Philosophy. • From a ceramic producer into a lifestyle supplier with the concept of „the single-source bathroom“ and „the completely laid table“

12. Assortment Strategy. Ceramics is core. Licenses Kitchen Table • Accessories • Cutlery • Glass • Oven dishes • China • Taps • Scent • Sinks Accessories Ceramics • Taps • CSW • Radiators • Furniture • Wellness • Sound-, lighting-systems Bathroom • Scent New Business Areas Licenses

13. POS WORLDWIDE 2009

14. Villeroy & Boch lifestyles what styles does the brand stand for ?

15. Lifestyle Metropolitan Lifestyles - Country Lifestyle Easy Lifestyle Classic

16. Metropolitan Classic Country Easy Villeroy & Boch Lifestyles. innovative innovative contemporary contemporary traditional traditional

17. Brand wheel • The values and attributes of the Villeroy & Boch brand are summarized in the Brand wheel • Consistencyeverything we do has to follow the key brand values of the brand wheel. Product, Communication, Point of Sales … • These values characterize our Products whether for daily use or special moments