Villeroy & Boch : Mettlach, 22 April 2015, Interim report on the first quarter of 2015:

April 2015

• Consolidated revenue up 1.2 % year-on-year to € 195.2 million.
• Operating EBIT improves by 8.0 % to € 9.5 million.
• Group result increases by 34.9 % to € 5.8 million.
• Growth and earnings targets for 2015 as a whole confirmed.

Revenue development: +1.2 % year-on-year

In the first three months of the 2015 financial year, the Villeroy & Boch Group increased its net revenue by 1.2 % year-on-year to € 195.2 million. Revenue amounted to € 195.6 million (+1.4 %) on a constant currency basis, i.e. assuming unchanged exchange rates as against the previous year. Net revenue in the Group's domestic market of Germany climbed by € 1.0 million or 1.7 % to € 60.0 million, while revenue outside Germany increased slightly year-on-year from € 134.0 million to € 135.2 million. The highest growth rate within the Group was recorded in Russia (+30.7 %), thanks in particular to very strong performance in the sanitary ware business.

Orders on hand amounted to € 61.7 million at 31 March 2015, up € 10.3 million on the start of the year. The Bathroom and Wellness Division accounted for around 65 % of this figure.

Operating EBIT up 8.0 % to € 9.5 million; total EBIT up 15.9 % year-on-year

In the first three months of the financial year, operating EBIT increased by € 0.7 million or 8.0 % to € 9.5 million. The main reasons for this development were efficiency improvements in the Group's production network and the optimisation of its revenue quality thanks to an improvement in the product, price and country mix. Taking into account the real estate project in Gustavsberg (Sweden), EBIT increased by as much as € 1.3 million or 15.9 %, because project-related expenditure had impacted earnings to the tune of € 0.6 million in the prior-year period.

Development in the divisions

The Bathroom and Wellness Division generated revenue of € 123.7 million in the first quarter of 2015, thereby repeating the prior-year level (€ 123.8 million). Revenue growth of € 2.9 million or 2.4 % was recorded on a constant currency basis. The main exchange rate effects were due to changes in the Russian rouble and the Swedish krona.

In the Group's domestic market of Germany, revenue for the first three months increased by 4.0 % to € 38.7 million. The most pronounced revenue growth was generated by Villeroy & Boch collections in the sanitary ware and bathroom furniture product categories. A substantial increase in revenue was also recorded in the Gulf States (+18.5 %). The downturns in revenue in France and Italy (both 11.4 %) were attributable to the continued weakness of the construction industry.

The Tableware Division generated revenue of € 71.5 million in the period from January to March 2015, corresponding to year-on-year growth of € 2.3 million or 3.3 %. At € 68.9 million, revenue on a constant currency basis was almost unchanged as against the previous year (€ 69.2 million). The main exchange rate effects were due to changes in the US dollar and the pound sterling.

The Group's domestic market of Germany was stable, with moderate revenue growth of 0.9 % to € 21.3 million. Outside Germany, revenue growth was recorded in the USA (+24.2 %), the Netherlands (+12.5 %) and Italy (+11.9 %) in particular. The Group also substantially increased its revenue in the Asia/Australia/Africa region (+16.4 %), a development that was attributable primarily to Japan.

Investment volume in the first quarter of 2015: € 2.9 million

The Villeroy & Boch Group made investments totalling € 2.9 million in the first three months of 2015 (previous year: € 5.3 million). 72.4 % of this figure related to the Bathroom and Wellness Division, where investments were primarily concentrated on modernisation measures and new facilities for the sanitary ware factories in Mexico, Thailand and Romania. Investments in the Tableware Division related mainly to the newly opened retail outlets in Mühlheim (Germany) and Warsaw (Poland), as well as the renovation of the store in Cookstown (Canada).

Outlook for 2015 as a whole

'The first quarter was characterised by the growth momentum resulting from the rise in private consumer spending in most euro zone countries, although this was accompanied by weak economic development in individual markets such as France and Italy,' commented Frank Göring, CEO of Villeroy & Boch AG. 'However, the continued expansion of our orders on hand, the positive customer feedback enjoyed by our new products at the Ambiente and ISH trade fairs and our expectation of moderate growth in the global economy give us grounds for optimism with regard to the rest of the year.'

Accordingly, the guidance for the 2015 financial year remains unchanged, with the company continuing to forecast an increase in consolidated revenue of between 3 and 5 % and an improvement in the operating result of more than 5 %.

The real estate project in Gustavsberg is also expected to lead to non recurring income. Total income from this project is currently forecast at € 17 million, of which € 11.8 million was already reported in the 2013 and 2014 financial years. The majority of the remainder is expected to be realised in the current financial year.

*) Return on net assets as of 31 December 2014

Contact:
Annette Engelke
Head of Press and Public Relations
Tel: +49 (6864) 81-1397
Fax: +49 (6864) 81-71331
Mobil : +49 (170) 782 44 21
E-Mail: engelke.annette(at)villeroy-boch.com

Sven Köpsel
Manager Investor Relations
Tel: +49 (6864) 81-2715
Fax: +49 (6864) 81-72715
E-Mail: koepsel.sven(at)villeroy-boch.com