1. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 1 Villeroy & Boch. Bath and Welness Division Prior consent required for publication of content or extracts of the presentation. February 2010. 2009 Figures available end March 2010.

2. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 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 limited company 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. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 3 260 Years Villeroy & Boch. 1748 The ceramic manufactory was founded in Lothringen. 1836 Following amalgamation of the 2 rivals, the company Villeroy & Boch was born. 1852 Beginning of tile produc- tion, followed by start-up of the mosaic production in Mettlach. 1899 Start of the large scale produc- tion of sanitary goods in Merzig. 1982 Villeroy & Boch is re-structured, decentralised basis; with 3 divisions: sanitary, tiles, tableware/crystal. 1990 Villeroy & Boch starts trading on the stock exchange. 1998 250th jubilee. Evolution from ceramic producer into a lifestyle supplier with the vision of "My House of Villeroy & Boch". 2000 Acquisition of a Swedish sanitary and fittings producer by the name of AB Gustavsberg; take-over of Svenska Badkar AB. 2004 2001 Take-over of the Austrian bathroom furnishings manufacturer db, the Belgian company Acomo and the Italian company Itema. Lifestyle segmentation. 2005 German Business Innovation Award for NewWave Caffè 1766 In Septfontaines, not far from the fortress of Luxemburg, the industrial production started. 2002 1999 Take-over of the Dutch Co Ucosan Holding. Formation of a new "Wellness" division. Acquisition of 3 sanitaryware production locations in Mexico Consolidation of the “Bath” and “Wellness” divisions. Restructuring of the “Tiles” division into a GmbH. Organisational restructuring: Integration of the two divisions “Bathroom & Kitchen” and “Tiles”; start-up of Project Business. 2007 2006 1809 Beginning of ceramic production in Mettlach. Since 1842 headquarters of the international group.  Taking over of 80% of the Thai sanitary manufacturer Nahm Sanitaryware Co. Ltd.  Taking over of the German bath furniture manufacturer Sanipa  260th jubilee Today Reorganization of the Villeroy & Boch Fliesen GmbH. Increase in sales and EBIT. Rise of the foreign sales up to 79 %.

4. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 4 Divisional Structure. Villeroy & Boch Tiles V&B Fliesen GmbH Division Tableware 100 % Division Bath and Wellness 100 % Tiles V&B Fliesen GmbH 49 %

5. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 5 Villeroy & Boch foundations 319,8 Mio. € Turnover 2.894 employees 521,1 Mio. € Turnover 6.879 employees Villeroy & Boch the leading Home Interior & Lifestyle-Brand from Europe 840,9 Mio. € Turnover (2008 only continued opoerations) 10.193 employees (annual Ø) Tableware since 1748 Sanitary & Wellness since 1848 2009 figures will be released after Press conference March 31.

6. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 6 Villeroy & Boch Group – Business segments Tableware is a core segment 62% 14% 24% 15% 34% 51% 38% 52% 2007 Spin-off tile business

7. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 7 Introduction: Strategy Architecture. Internationalization Distribution Strategy Strategic Goals Profitability (Net profit. ROCE) Strategic Basis Core Competence Vision, Mission, General Guidelines Assortment Strategy Bathroom & WellnessTableware Strategic Cornerstones

8. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 8 Mission Statement of Villeroy & Boch AG. What we aim to achieve. Steadfastly committed to meeting our customers’ needs, we provide innovative solutions with exceptional quality and service to both end consumers and project partners We turn your place into a captivating quality of live space Vision Mission

9. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 9 The House of Villeroy & Boch. Bundling/Placing Products in Living Spaces. Cooking, dining, living:  Elegant / attractive and balanced full assortment  Occasion-related solutions  Products for cooking, serving, eating and decorating Bathroom  Harmonious and balanced assortment  Complete product range  Aesthetic & functional solutions

10. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 10 European Culture confident inspiring sustainable passionate artistic innovative sensual empathic high value reasonable solid functional classical/ authentic stylish contemporary cosmopolitan Brand values and attributes all three values have to apply to ensure for a Villeroy & Boch identity

11. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 11 Villeroy & Boch is the leading European premium brand in product areas concerning tableware, kitchens, and bathrooms With Villeroy & Boch products I can express myself and shape my very personal home; for me, my family and my friends 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 Positioning Benefit Reason Why Villeroy & Boch Brand Positioning. How the Brand distinguishes itself.

12. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 12 Brand Philosophy. From a ceramic producer into a lifestyle supplier with the concept of „the single-source bathroom“ and „the completely laid table“ „the completely laid table“ „the single source bath- room“

13. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 13 Assortment Strategy. Ceramics is core. Bathroom Kitchen Cutlery Table New Business Areas Glass Taps Radiators China Wellness Furniture Sinks Taps CSW Oven dishes Accessories Ceramics Accessories Sound-, lighting-systems Scent

14. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 14 POS WORLDWIDE 2009

15. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 15 Villeroy & Boch lifestyles what styles does the brand stand for ?

16. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 16 Lifestyles - Country Lifestyle Classic Lifestyle Metropolitan Lifestyle Easy

17. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 17 Villeroy & Boch Lifestyles. traditional contemporary innovative traditional contemporary innovative Classic Metropolitan Country Easy

18. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 18 Brand wheel The values and attributes of the Villeroy & Boch brand are summarized in the Brand wheel Consistency everything 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

19. Villeroy & Boch AG - Tableware Division Presentation – 2010 02 19