1. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 1

2. September 5, 2015 BRIAN STANDBRIDGE UK OPERATIONS & EMEA SOURCING DIRECTOR IDEAL STANDARD INTERNATIONAL OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 14 OCTOBER 2010

3. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 3 Introduction Privately owned company employing over 10,500 European HQ in Brussels Operations in Europe, Middle East, Africa and Latin Americas Brands UK - Main manufacturing warehouse site at Armitage, Rugeley - Employing over 50% of 1,200 UK employees

4. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 4 Recently – the site has developed from a multi level casting facility to single level (2000). It has seen a progressive removal of all plaster moulds (the last of which was removed in 2004). Combined with the introduction of automation.

5. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 5 History in the UK o1999 / 2000 Acquisition of Armitage Shanks in the UK and Ceramica Dolomite (Italy) o2000 – to date Consolidation of ‘general purpose ’ sites o£7.5m manufacturing investment and £2.5m warehouse investment oFocused Commitment of American owners to plant in Armitage village (Rugeley) on producing bulk of UK sales in a single plant.

6. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 6

7. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 7 Key Strategy for the Plants Evolution oConversion to 100% pressure casting facility (UK & Italy) oInstallation of 3 generation of pressure casting equipment based on technology available 1. Pressure Cast – manual demoulding/finishing 2. Pressure Cast – robot demoulding / manual finishing 3. Pressure Cast – 100% robot demould / finishing o24x7 Plant – 350 days / year oBalanced flow – all machines integrated in flowline production facility with transportation elimination and 100% robotic glaze application oInstallation of best practise recycling equipment for glaze usage.

8. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 8 Key Strategic aims … Equipment installed in quest of strategy of:-  Highest productivity plant in ISI  Lowest material usage – highest yield and zero waste  Tighter process control – quality and yield  Produced locally, sold locally, supported locally  Lowest carbon footprint (UK manufactured)  Cost position towards goal of « CHINA + SHIPPING »

9. 2000200220012003200420052006200720092008 Pre 2000 Dorst & Porvair basin pressure casting machines 16 x glaze application robots Bead milling Glaze preparation unit 1 x Porvair 4 part bowl Pressure casting machine 1 x Porvair 4 part bowl Pressure casting machine 1 x Porvair 5 part bowl Pressure casting machine Xtract glaze reclamation unit SACMI automated tank cell 1 x Porvair COBR & WHB Pressure casting machine 1 x Porvair FFC basin & ped Pressure casting machine 492451395378323303306300297286 Headcount reduction ( redeployment/natural wastage / voluntary) Capacity growth from 1,35m to 1,9m pcs (+40%) Introduction of new technology Continuous Introduction of Footprint

10. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 10 KEY ACHIEVEMENTS – BEFORE / AFTER TRADITIONAL PLANT CONVERTED AUTOMATED PLANT RoSPA Gold medal Winners Reduction of recordable incidents Over -90% Now Single Digit per year Safety Culture Safety Record Poor Claims Culture Customer Lead Times long (2 weeks) with backlog variation Manufacturing leads times from 5 days to below 36 hours Inventory Reduction – 28% Mould changed daily Next day delivery introduced Variability of Quality Yields and Conformance of products 15% higher FPY Highest FPY in Group Return on Sales halved (Warranty)

11. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 11 KEY ACHIEVEMENTS – BEFORE / AFTER TRADITIONAL PLANT CONVERTED AUTOMATED PLANT Typically 30% labour needed Engineering based plant with Ceramic knowledge Manually-intensive plant. Craft style skills Mixed technologies Batch produced Traceability difficult Standard flow technology (UK/Italian produced) Continuous 24x7 operations Barcoded 100% Tranxfer production Real time fully integrated SAP Energy-intensive (drying) Material intensive (Moulds, clay, waste) Energy consumption units/1000’s Gas = 62% average Electricity = 58% average Mould life > 50k Materials = 75% Zero waste philosophy

12. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 12 16,250 Co 2 /annum Rugeley plant Traditional plant Asian Sourced Product Saving

13. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 13 WE BELIEVE … Made in Staffordshire Highest productivity and reliability Pride in quality and lifetime guaranteed! Loyal (15 year average) and skilled workforce who are keen and adaptable to change. Can be used in a large company ‘balance’ exchange rates No 25% labour inflation No 40% transportation inflation Best solution for CHINA + SHIPPING SUMMARY

14. September 5, 2015 OPPORTUNITIES WITH ROBOTICS AND FACTORY AUTOMATION 14