20 March 2009 - Financial crisis forces the company to take action – Sites to be consolidated – Some 900 jobs eliminated worldwide – Annual savings of approx. €50 million – Costs of these measures will impact 2009 performance

In the meeting of the supervisory board that took place today, the executive board and supervisory board of Villeroy & Boch signed an extensive series of measures for its European sites. The goal is to increase the company's efficiency and productivity.

The program focuses on consolidating fields of specialisation at particular sites, creating competence centres and continuing to automate production processes. The corporate group also plans to downsize its international staff of 9250 by some 900 positions. Discussions with employee representation have been initiated.

By 2011, after all of these measures are implemented, Villeroy & Boch anticipates being able to save some 50 million euros annually. In the 2009 business year, however, the costs of these measures will total around 60 million euros and will have a strong impact on this year's performance results. Approximately 25 million euros of investments in these measures are planned for the entire corporate group in 2009 and 2010.

 

Villeroy & Boch is taking over an 80% interest in the Thai sanitaryware producer Nahm Sanitaryware Co, Ltd., which is situated in Bangkok. Conclusion of the agreement is dependent on the approval of the Thai Board of Investment.

 

This acquisition is a resolute step forward in the company’s internationalisation strategy. Approximately 80% of Villeroy & Boch sales are already being made outside Germany. The objective in purchasing Nahm Sanitaryware Co, Ltd. is to create a platform in Asian-Pacific countries in order to be in a position to develop the sales potential in the region more intensely. This local presence allows a prompt response to changes in the dynamic Asian markets.

Villeroy & Boch will continue to use the “nahm” brand in Asia. Moreover, a selection of the sanitaryware collections and ranges for special projects with the Villeroy & Boch brand will be produced in the Thai factory for the Asian market and for Australia.

 

Thailand is an attractive destination for expansion, especially on account of its reputation as a production location for quality goods and of free access to the South-East Asian markets (Asean). Nahm Sanitaryware Co, Ltd. is positioned in the medium to high quality goods segment and ranks amongst the leading sanitaryware producers in Thailand. The company employs a workforce of around 800. In 2007 it achieved sales totalling 10 million euros with annual capacity of 500,000 units.

 

 

For further information please contact:

 

 

Almut Hähner-Ural

Head of the Press Department and Public Relations

Tel: (00 49) (0) 68 64 - 81 13 97

Fax: (00 49) (0) 68 64 - 81 26 92

Mail: haehner-ural.almut@villeroy-boch.com

Philipp Schmidt

Investor Relations

Tel: (00 49) (0) 68 64 - 81 1520

Fax: (00 49) (0) 68 64 - 81 71520

Mail: schmidt.philipp@villeroy-boch.com

 

March 29th 2007

At the Supervisory Board meeting of March 29th 2007 the Supervisory Board of Villeroy & Boch AG appointed Frank Göring (45) Management Board spokesman with effect from June 1st 2007. He therefore succeeds the current Management Board Chairman, Wendelin von Boch (64), who after 40 years' service at Villeroy & Boch will become a Supervisory Board member at the General Meeting of Shareholders on June 1st of this year.

Following his degree in business administration, and executive positions in the marketing department at Procter and Gamble, Reemtsma and Hero, Frank Göring joined Villeroy & Boch in 1997 as Marketing Director of the Bathroom and Kitchen Division. On January 1st 2005 Frank Göring was appointed member of the Villeroy & Boch Management Board, holding responsibility for the Bathroom and Wellness Division.

With the appointment of Frank Göring to Management Board spokesman, operative management of the two Divisions, Bathroom and Wellness and Tableware will be transferred to Executive Committees which will report directly to the Management Board spokesman.

Management Board member Manfred Finger retains unchanged responsibility for the Finance and Personnel divisions, and also his position as Director of Human Resources.

A third organisational unit – "Corporate Development" – will be set up, in the second half of 2007, to which the departments Law, M+A/Strategic Planning, Innovation, Engineering, Purchasing and Revision will be assigned. This decision should, above all, promote strategic development in the corporate globalisation process.