Dividend proposal for the General Meeting of Shareholders of Villeroy & Boch AG

Mettlach, 10 March 2011 – The Supervisory Board and the Management Board of Villeroy & Boch AG will propose the distribution of a dividend of €0.20 per preference share and of €0.15 per ordinary share at the General Meeting of Shareholders on 13 May 2011. In addition, preference shareholders will also receive an additional payment of the minimum dividend for 2009 of €0.13 (i.e. a total of €0.33 per preference share).

The dividend reflects the pleasingly positive operative earnings situation: Consolidated EBIT before extraordinary expenses improved by around €25 million as against 2009 to €23.6 million.

As a result of the extraordinary expense of €73 million in connection with an EU antitrust fine, which the company considers unfounded and against which it is appealing, there is a consolidated net loss after taxes of more than €60 million.

The further details of the annual financial statements will be discussed at the annual press conference in Frankfurt on 24 March.


Villeroy & Boch AG: European Commission imposes fine

Mettlach, 23 June 2010 - The European Commission announced in Brussels today that it has imposed a fine totalling EUR 71.5 million on Villeroy & Boch AG, Mettlach, and its subsidiaries in Belgium, Austria and France. The decision was directed against 17 manufacturers of taps, shower screens and bathroom ceramics.

Villeroy & Boch is charged, as a manufacturer of bathroom ceramics, with participating in concerted practices in Germany, Belgium, Austria and France from 1994 to 2004.

The justification for the order imposing the fine has not yet been delivered to Villeroy & Boch. As a result, Villeroy & Boch is not at present in a position to examine the merits of the case and the fixing of the fine. The Company will undertake a review of the order and will probably appeal.

Appropriate reserves will be set aside in the semi-annual report.

 

Villeroy & Boch signs a series of measures to increase

Mettlach, 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 takes over Thai sanitaryware producer

Mettlach, 19 March 2008 - 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.