1. 1 ROCA www.roca.es

2. 2 Structure

3. 3 Product Offer: Everything for the complete bathroom sanitary ware furniture bathtubs / shower trays shower enclosures whirlpools / multifunctionals taps accessories tiles Withdrawn from: heating and air-conditioning

4. 4 Due to flat core markets and the “digestion” of Laufen our growth stopped after 2000 Note: PF = Pro Forma

5. 5 The true core of our Group, Roca Sanitario, has an EBIT margin on industry benchmark level

6. 6 World-wide CSW production

7. 7 Cost leader in CSW

8. 8 N° 3 in the „world market“ Total value as basis: 5,2 billion Euro (ASP)

9. 9 N° 3 in Europe Total value as basis: 2,2 billion Euro (ASP)

10. 10 Actual Strategy

11. 11 Strategic Goal To overtake Kohler and American Standard to become the world wide market leader in the bathroom business

12. 12 Actual Strategy: PRODUCTS concentration on the bathroom business (divest all other product fields)

13. 13 Main brand - world-wide - entire product spectrum Positioning: Functionality and Quality Main brand for central Europe concentration on CSW (but also bathtubs, shower trays and furniture) Positioning: Design and Quality Actual Strategy: BRANDS Regional brands with high market share in their region

14. 14 Actual Strategy: MARKETS core markets (ES, PT, CH, AT) to hold the high market share in CSW at least constant and to diversify in other bath product categories target markets (FR, DE, NL, IT and UK) to enter in these markets via price-aggressive offers in the project business (e.g. in F) or in the DIY (e.g. IT, F) or via acquisition of a company (e.g. in IT) potential markets (East-Europe, Asia, Russia) build up production capacities in „coming or new“ markets or buy regional market positions by acquisition of attractive regional brands

15. 15 S W O T (only Roca team)

16. 16 Strengths Management: International-minded Ability to handle big (Laufen) and parallel acquisitions Brands high brand awareness in core markets as ES, PT, CH, AT strong regional brands in CZ, SK, BG as well as ES and PT Product range strong position in the Professional segment in the core markets Markets one sales force selling CSW, furniture, taps, bathtubs Production international production in low cost countries (cost-leader!) good allocation geographically General independent company high profit margin and funds from divestments allow further acquisitions / international product development and communication investments

17. 17 Strengths Management: International-minded Ability to handle big (Laufen) and parallel acquisitions Brands high brand awareness in core markets as ES, PT, CH, AT strong regional brands in CZ, SK, BG as well as ES and PT Product range strong position in the Profi segment in the core markets Markets one sales force selling CSW, furniture, taps, bathtubs Production international production in low cost countries (cost-leader!) good allocation geographically General independent company high profit margin and funds from divestments allow further acquisitions / international product development and communication investments Weaknesses Management: Lack of focus outside CSW (e.g. loss of Ariston market shares) Brands brand ROCA is very product orientated, no lifestyle and emotion for the products used in the showroom business Product range no international „design taste“ in the ROCA range weak position in premium segment and Wellness offer Markets weak position in important CSW markets like DE, UK, I

18. 18 Opportunities Markets good attack position for high potential markets such as East-Europe, USA and Asia attractive markets for high profit margins and good volumes in Europe like DE, UK, IT, Benelux and Scandinavia Production use low-cost production facilities for Profi and Mainstream segments Distribution attractive for world-wide distributers because of ubiquity Communication opportunity now to build brand in terms of communication as basic abilities are solid

19. 19 Opportunities Markets good attack position for high potential markets such as East-Europe, USA and Asia attractive markets for high profit margins and good volumes in Europe like DE, UK, IT, Benelux and Scandinavia Production use low-cost production facilities for Profi and Mainstream segments Distribution attractive for world-wide distribution because of ubiquity Communication opportunity now to build brand in terms of communication as basic abilities are solid. Threats Competitors strong final consumer brand V&B and Duravit strong position of AS and Kohler in USA and Asia Distribution Entry of international wholesale groups (e.g. Wolseley, Saint Gobain) on Iberian market with own preferred suppliers Legal Legal action against trade policy of tying trade in Spain (“Roquistas”)

20. 20 Future Strategy To be defined: Strategic goals Brands Communication Distribution & Logistics Strategic Alliances