Sanitec Corporation in one sentence

2

Sanitec Corporation in one sentence

• is a European multi-brand group that

• designs, manufactures and markets bathrooms ceramics and bath and shower products,

• is based around locally well known brands

• maintains a leading position as No 1 or 2 in all its European core markets,

• strives to be a globally successful player in core growing markets

• is clearly No1 in price leadership

• and driven by profitability. We aim to have an EBIT of 15-20 %.

3

We divide our structure in Ceramics, Acrylics & Enclosures (CA&E) and Wellness, although in reality it is more generalist brands versus specialists

A lliaF R , B E (+ lo w -ra n g e D E )C S W , F u rn itu re , A c rylics

IdoF I, S E , N O , B a lt, R u ss ia

C S W , Fu rn itu re , A c rylic s , S tee l, E n clo su res

K o loP L , U A , C e n tra l E uro pe

C S W , F u rn itu re , A crylic s , E nc lo su re s , W e lln e ss

V aricorD E

C o m po s ite s in ks a n d w a sh ba s ins

K eram agD E , A T , C H , N L , B E

C S W , F u rn itu re , A c rylics , W e lln e ss

P o zzi-G in o riC S W , F u rn itu re , A c rylics

S e llesC S W , F u rn itu re , A c rylics

S p h inxN L , B E

C S W , F urn itu re , A c rylic s , E n c lo su re s , W e llne ss , T & M

T w yfo rdU K , IE

C S W , F urn itu re , A c rylic s , E n c lo su re s , W e llne ss , T & M

P an daD IY a nd lo w -ra n ge

C S W , A c rylics , E n c lo su res

C eram ics,A crylics &

E n clo su res

A lba trosM a in ly IT , a lso o the r cou n tries

A c rylic s , w h irlp o o ls , M F C

R evitaE u ro pe

A c rylic s , w h irlp o o ls , M F C

K o ra lleD E , A T , C H

E n c lo su re s , A c rylic s , w h irlp o o ls , M FC

L edaF R

E n c lo su re s , A c rylics

P an daD IY a nd lo w -ra n ge

C S W , A c rylics , E n c lo su res

W elln ess

Sanitec

4

Keramag / Varicor Allia Selles Pozzi-Ginori

Kolo

Ceramics (series)

Sphinx Ido Ifö Porsgrund Twyford

Central Europe F + BE IT Benelux

Central Eastern Europe

North East Europe UK + IE

Renova Nr. 1 (Profi)

Renova Nr. 1 Plan (Profi)

Renova Nr. 1 Pro Varicor (Profi)

Prima (Profi)Eurobase (Profi)

Royan 2 (Profi)

Bastia (Profi)

Advent (eco)

Galery (mid range)

Nova (Profi)

Sphinx 390Sully

Preciosa

Desirade

City

Join

Easy02

500

Montebianco

Ydra

Fantasia

Colibrì

No

info

rmat

ion

5

Kolo

Acrylics (series)

Sphinx Ido Ifö Porsgrund TwyfordAlbatros RevitaKoralle

Central Europe F + BE IT Benelux



Market for steel bathtubs + trays

Normaline

Prima (Profi)

Bastia (Profi)

Allia Selles

Royan 2 (Profi)

Sully

Riviera

Ethos-Albatros

Ethos-Albatros

Erica-Revita

New Vanity-Revita

No

info

rmat

ion

No

info

rmat

ion

No

info

rmat

ion

6

Kolo

Enclosures

Sphinx Ido Ifö Porsgrund TwyfordLedaKoralle

Central Europe F + BE Benelux



Twiggy Top

Edition

Supra Top

Norma Top (Profi)

Supra Top

Twiggy Top

Edition

Solid

Solid Cabins*

Cornette Cabin*6-5 Cabin*

7-3

7-4

*typical: complete shower cabin

Tendance

No

info

rmat

ion

No

info

rmat

ion

No

info

rmat

ion

7

Kolo

Wellness (whirpools + MFCs)

Sphinx Ido Ifö Porsgrund TwyfordAlliaKoralle Albatros Revita

Central Europe F + BE Benelux


North East Europe UK + IEIT

Progress Forte

Havanna (Acryl)

Accent (Acryl)

No MFC6-5 & 6-6

enclosure+MFC

Noon (Acryl)

Feel (Acryl)

Prima (Profi) Ethos

Ethos

Master Plus

My Time

Erica

New Vanity

Kalambò

No

info

rmat

ion

No

info

rmat

ion

No

info

rmat

ion

8

History/ Strategy

9

Our history (1/2)

• Our history as Sanitec started in 1990 when Wärtsilä Corporation (later Metra) merged its bathroom activities, and our group then consisted of Ido Bathroom (FI), Ifö Sanitär (SE), Porsgrund (NO) and Evac (FI).

• The success of our business model, to concentrate on the established market leader (#1 or 2), has guided us on our growth path:

– In 1991 we acquired Allia (FR)and Keramag (DE), two leading bathroom suppliers in their home markets

– In 1993 Pozzi-Ginori (IT) and Sanitec Kolo (PL) followed. Both companies are leading bathroom suppliers in their home markets

– With FAS (FR) in 1993 we ventured for the first time into the acquisition of a specialist supplier (acrylic bathtubs). In order to conserve our focus, we integrated FAS later under Allia.

– More specialists came in 1995 with Laminex (PL; acrylic bathtubs and whirlpools) and Varicor (DE; solid surface washbasins and sinks)

– In 1997 we took 50% holdings in Johnson Suisse (Malaysia), and in Lecico (Egypt), both bathroom suppliers, although tending to concentrate on ceramic sanitaryware

– With Domino (IT) in 1998 we acquired the brands Albatros and Revita for acrylic bathtubs and shower trays, whirlpools and multi-functional cabins, which was not only strong in Italy, but also in several other markets.

– In 1999 we acquired most of the Sphinx-Gustavsberg Group (but “lost” Gustavsberg to Villeroy & Boch). This brought us not only Sphinx (NL), but also Selles (FR) and Koralle (DE). In this year we also bought the remaining 50% of Johnson Suisse in Malaysia.

10

Our history (2/2)

• The year 1999 was also important in another respect, because Metra, our mother company, introduced us on the Helsinki stock exchange

• In 2001 we made our (until now) latest major acquisition with Twyford (UK).

• Later in 2001, the European private equity fund BC Partners took over the entire share capital from Metra and other share holders. In November we were therefore delisted from the stock exchange

• In 2004 we sold Evac (environmental solutions) as being a non-core activity and we decreased our participation in Lecico (Egypt) to 20% although we maintain our sourcing relationship

• In 2004 we also closed the loss-bringing CSW factory of Sanker in Slovakia and the acrylic bathtub factory in Hirzenhain (Germany). We furthermore announced the restructuring of the factory of Sphinx in Maastricht (Netherlands). We finally also announced the planning of a new acrylic factory near Kiev (Ukraine)

• In 2005 we announced:– investment of a new CSW factory in Poland

– joint venture with Hocheng from China for building a new acrylic factory

– joint venture with Santek (Russia) for the production of ceramic sanitaryware.

– A review of the Alsager plant (UK)

• In April 2005 the private equity fund EQT acquired Sanitec from BC Partners

• In 2006 we closed the shower cabin production in Norrtälje and moved it to Mörrum

11

Our history (2/2)

• In 2003 we announced an alliance with Hindustian Sanitaryware regarding the sale of Keramag in India

• In 2004 we announced a separate sales organisation for the project sector in BeNeLux

12

The main steps in our history show the consistent external growth

15

As Sanitec itself, most of our international competitors cover almost the entire spectrum of bathroom products, but often more evenly spread

Source: Sanitec research

Legend: X = minor weight in sales of companyXX = medium weight in sales of companyXXX = great weight in sales of company

Presence of main suppliers:by product group Power base

Bathtubs & trays

Showerenclosures Whirlpools

CeramicSanitaryware Hydrotherapy

Taps &Mixers

Bathroomfurniture

Installationsystems

CeramicTiles

Sanitec Europe XX X X XXX X (x) X

American Standard World XX (x) (x) XXX (x) XX (x)

Duravit Europe X (x) XXX (x) XX

Grohe Europe XXX XX

Inax Asia XX X X XXX X X XX XX XX

Kohler N-America XX (x) X XXX X X XX X (x)

Masco N-America X XXX XX XX XXX

Roca/Laufen Europe XX(ES/PT)

X X XXX X(ES/PT)

X(ES/PT)

X(ES/PT)

X(ES/PT)

X(ES/PT)

Toto Asia XX X X XXX X XX XX XX X

Villeroy & Boch Europe XX X X XXX X XX X XX

16

Our strategy

Sanitec strives for becoming a leading European provider for bathroom solutions, with the customers and market needs as the driving force of our strategy and operations. We aim to be a global and successful player in the core growing markets, particularly in Eastern Europe, Middle East and Asia.

Today, Sanitec is transforming from a decentralised group of individual companies into a single, pan European multi-brand company. We are confident that acting as an integrated group, we are stronger and are enabled to realise growth opportunities today and in the future. Simultaneously, we open up the potentials of our businesses by focusing on cost leadership and efficiency on the one side, and on innovation, flexibility and outstanding customer service on the other.

Our strong local brands with long established roots are cherished and valued as one of our key strengths. We compete both locally and globally, having the local knowledge and expertise as well as the understanding of the bigger picture to better serve our customers.

We do not strive to replace our strong brands by a global Sanitec brand. Indeed, we would not be able to protect our brand as this name has already been taken by local players in markets like France

17

Production

18

Sanitec: production in Europe only, but with sourcing from beyond (e.g. Lecico)

Production locations Sanitec (in red)Total capacity: Europe: 12 mln pcs World: 12 mln pcs

Note: flags in blue indicate sourcing partners

19

More details on our network for ceramic sanitaryware

Continent Country CompanyProduction location(s)

Capacity'000 pcs /yr

Production planned

Reference cost price Comments

E-Europe Poland New factory Kolo - 1.000 10,0 €E-Europe Poland Sanitec Kolo Kolo 1.000 10,0 €E-Europe Poland Sanitec Kolo Wloclawek 1.100 10,0 €E-Europe Russia JVE-Europe RussiaW-Europe Germany Keramag Haldensleben 1.000 23,0 €W-Europe Germany Keramag Wesel 500 23,0 €W-Europe Finland Ido Tammisaari 1.000 23,0 €W-Europe France Allia Digoin 1.000 23,0 €W-Europe France Allia La Villeneuve au Chene 500 23,0 €W-Europe France Allia Limoges 500 23,0 €W-Europe France Selles Selles-sur-Cher 550 23,0 €W-Europe United Kingdom Twyford Alsager 1.200 500 - 23,0 €W-Europe Italy Pozzi Ginori Gaeta 1.000 23,0 €W-Europe Netherlands Sphinx Maastricht 750 400 - 23,0 €W-Europe Norway Porsgrund Porsgrund 100 23,0 €W-Europe Portugal Eurocer Carregado 1.200 15,0 €W-Europe Sweden Ifö Bromölla 1.000 23,0 €E-Europe Russia JV Santek Cheboksary 250 at 50%E-Europe Russia JV Santek Novocheboksarsk 600 at 50%

18 12.400 950 20,0 €

20

More details on our network of non-CSW factories

Continent Country CompanyProduction location(s) Comments

W-Europe Germany Koralle Vlotho Shower enclosures and MFCW-Europe Austria Baduscho Margarethen am Moos Shower enclosures (2step distribution)W-Europe France Leda Bayonne Shower enclosures and cubiclesE-Europe Poland Sanitec Kolo Minsk Mazowiecki Acrylic bathtubs and whirlpoolsE-Europe Poland Sanitec Kolo Ozorkow Acrylic shower trays and shower enclosuresW-Europe Sweden Ifö Mörrum Steel bathtubs and shower cabinsW-Europe France Allia Vendome Acrylic bathtubsW-Europe Denmark Scandiaqualine Varde Whirlpools and spasW-Europe Italy Domino Spilimbergo Acrylic bathtubs, whirlpools, MFCW-Europe France Varicor Wisches Composite materials for sinks and washbasinsW-Europe Ukraine New factory Kiev Planned: Acrylic bathtubs

Asia China JV with Hocheng Acrylic bathtubs

21

Global presence of the main competitors in CSW (year 2004)

100

200

300

400

500

Europe Asia AmericaDE FR UK/IE IT BNL Sca ES/PT RU Oth

EUR JP CN IN Rest

S+OA US CA MX Rest

S-Am

Size (m€) 278 320 378 350 102 165 253 173 372 475 702 186 >700 1.209 100 124 >240

Villeroy & BochAmerican StandardDuravitEczacibasiGroheInaxJacuzzi brandsKludiKohlerMascoRocaSanitecToto

Legend: Market share (volume): > 15% Market share (volume): >2% - <5%Market share (volume): >5% - <15% Market share (volume): <2%

Ceramics(incl. sinks and

showers)

22

Turnover by brand:(in Euro)

Ido: (04) 100 Mioifö (04): 125 MioKolo (04): 52 MioSphinx (03): 128 MioKeramag (05): 118 MioKoralle (05): 36 MioTwyford (03): 111 MioAllia (04): 170 MioDomino (03): 54 MioPozzi-Gin. (03): 51 MioLecico

Year 2005

23

North-West Europe is where we are leading the market

Germany14,5%

France16,1%

UK11,6%

Benelux8,8%

Sweden8,0%

Italy8,7%

Norway5,2%

Denmark4,2%

Finland4,1%

Poland5,8%

Others13,0%

24

Our strategy products

markets

current

current

new

new

Penetration Development/Innovation

Internationalisation Diversification

25

We see great potential for us in raising the market share in bath and shower products

Avg 21 %Avg 8%

26

Our strategy

Penetration:

• keeping our No 1 or 2 market position by focussing on cost leadership and very close contact to our customers esp. Installers

• Closing the gap in European market shares between CSW 21 % and acrylics (bathtubs/ shower trays) 8%

products

markets

current new

new

current

27


markets

current

current

new

new



28

Product Leader

Price Leader Customer Leader

- best product- sets standards- determines Innovations

- has the best price- sets price standards- small assortment- cost leadership

- best overall solution- sets relationship standards- wide spectrum of performance- high service level

29

Our strategy

Development/ Innovation:

• we define ourselves not as the cutting edge innovator; but our strong industrial presence allows us to adopt innovations quickly at competitive prices

products

markets

current new

new

current

30


markets

current

current

new

new



Land Area

Total Population

Population Area

populationgrowth demand

33

Our strategy

New markets/ Internationalisation:

• exploring Eastern European markets • acrylic factory in Ukraine• CSW factory in Poland• Joint venture in Russia

• putting a foot into Near Middle East• investment in CSW factory Lecico (Egypt)• exploring booming project markets in Saudi peninsula

• first steps in Asian emerging markets• Distribution agreement in India

products

markets

current new

new

current

34

Our strategy

New markets/ Internationalisation :

• use of cross-marketing potentials by introducing our existing brands into new markets

• focussing on project sales with specialised sales forces• Northern Europe, BeNeLux, Germany, NME

• moving into new premium market segments with products like F1, Flow, Citterio

products

markets

current new

new

current

35


markets

current

current

new

new



36

We group business segments according to their underlying production process (volume vs. Complexity)

37

Our strategy

Diversification:

• we are clearly focussing on volume driven product segments in the bathroom like CSW and acrylics

• as our customers in the trade are the ones to combine the bathroom we do not focus on offering a complete bathroom; therefore we do not diversify into heating, taps, accessories, tiles etc.

products

markets

current new

new

current

38


markets

current

current

new

new



!!

!!

39

Internationality

Lifestylefull liner

Domestic market focuslow internationalisation

Product segment or niche driven

41

Backup

SWOTonly Sanitec team

43

Strengths / Stärken

• We share our expertise and competencesbetween the group production sites.

• We monitor efficiency with one standardizedbenchmarking method.

• We share knowledge and methods.• We invest in new factories in order to improve

productivity and achieve cost reduction.• We automate production processes, we copy

the best practice from one factory to the others.This leads to less starting up problems and ashorter learning curve.

• We use more systematically our existingcapacities, local factories are no longer meantfor local markets

• We roll out TPM (total productive maintenance)in all our factories, we focus on eliminatingwaste

• Our factories compete internally for newproducts

Weaknesses / Schwächen

• The sharing of knowledge and competences inautomation is a one way process from Ifö to theother factories. The “not invented here” syndromecomplicates the local acceptance.

• Too much standardization eliminates thedevelopment and growth of new ideas andmethods.

44

Chancen/ Opportunities

• The transfer/use of automation know how fromother industries will help us to develop fasterthen our competitors.

• The research of the car industry for alternativeenergy sources will help us to find solutions forthe coming energy shortage for our gas firedkilns. General Motors starts their world researchcentre for alternative environmentally friendlycars in Göteborg Sweden (close to our factoryin Brömolla). This will give a spin off effect.

Risiken/ Threats

• Due to the increasing ageing of the population inEurope we will encounter problems in recruitingcompetent technicians and operators.

• This effect might also lead to increased salarycosts

• The strong growth of the economies in China,India and Brazil creates an enormous pressureon the energy- and raw material markets andtheir prices. A shortage of oil deliveries with all itsconsequences is already expected in 2010.

• There is a shortage of competent andexperienced personnel for the automationprojects of our factories in Western Europe.

45

Strategy for low cost/high cost production

• Upper range products are produced in one or two specialized factories, smaller volumes.

• Mid and lower end products are produced in several factories, higher volumes.

• Local factories are no longer meant for local markets.• Existing old factories are closed down and substituted by smaller

automated factories. (examples: Ifö, Ido, Sphinx and Twyfords)• Cost reduction by copying the best practice to the other factories.• Automation will increase efficiency and reduce costs. (examples

in GB, NL, SE and F)

46

Sales

47


Strong and dominant position in a lot of Europeencountries. Wide range of products offering the completeassortment for bathrooms (total bath concept). Strong local focus by strong well known localbrands. Through the (local) network be quick in marketresponse and have short time to market. Decentralized R&D focused on local marketneeds. Specialist brands and production in each productcategory. Diversity of brand portfolio allows flexibilityregarding price levels (PG 1-5) and distributionchannels (traditional, DIY) Availability and delivery service


Complex product portfolio and sales organization. Expensive marketing support due to multi brand and

local approach. We competing internally e.g. ifö and ido in the market Lack or no of corporate image/identity. Hardly use of synergies in product development and

marketing; double work Too much a European company, no global player on

the market. Not investing enough in building up brand awareness

and image. Weak awareness at final customers. Risen demand of ROI in EQT, short term thinking and

focus.

48


Focusing on acquisitions and growth in newmarkets as eastern Europe and middle East. Using our big nr of production units for effectivebenchmarking of production cost and productionefficiency. Our size allows taking active part in settingstandards for CSW in Europe Technical leadership with focus on innovation. Recovery of the construction industry inGermany, France, Benelux with growing demand.

Risiken/ Threats

Rising product cost per piece in western Europe. Few acquisition objects are on the market due tohigh industry concentration rate Rapid changes in market development in easternEurope. Quick stagnation of the mature European markets,dependency on Europe. Competition is faster in setting up and organize thenew developing markets. Quality at low price from China.

49

More details on our market sharesShare of volume AT BE CH DE DK ES FI FR GR IE IT NL NO PT SE UKCeramic Sanitary Ware 5% 25% 5% 31% 68% 0% 80% 18% 2% 10% 13% 51% 61% 0% 61% 20%Baths: Synthetic 1% 1% 2% 9% 9% 16% 2% 17% 4% 8% 5%Baths: Steel 41% 42% 7% 44% 52% 22%Hydromassage Baths 0% 6% 3% 10% 2% 3% 2% 11% 1% 0% 2% 0%Shower Trays: Synthetic 3% 7% 10% 1% 3% 6%Shower Trays: Ceramic 28% 12%Shower Trays: Plastic 1%Shower Trays: Steel/C. Iron 54%Shower Enclosures 9% 2% 40% 9% 33% 20% 5% 5% 44% 23% 0%Bath Screens 8% 1% 2% 32%Conv. Shower Cubicles 8% 9% 40% 3% 49% 14% 31% 78% 28%Combined Products 10% 17% 3% 7% 3%Shower Panels 1% 0% 2% 2% 2%Bathroom furniture 1% 2% 4%Taps and Mixers 1%

Share of volume BG CZ EE HR HU LT LV PL RO RU SI SK UA AE BH OM QTCeramic Sanitary Ware 0% 18% 24% 2% 7% 4% 7% 36% 0% 2% 7% 30% 11% 0% 2% 2% 3%Baths: Synthetic 5% 2% 2% 0% 33% 1% 4% 7% 4% 1% 1% 2%Baths: Steel 2%Hydromassage Baths 10% 1% 1% 0% 0% 4% 21% 6% 3%Shower Trays: Synthetic 3% 10% 27% 3% 5% 5%Shower Trays: CeramicShower Trays: PlasticShower Trays: Steel/C. Iron 13%Shower Enclosures 0% 3% 9% 2% 16% 14% 2% 7%Bath ScreensConv. Shower Cubicles 25%Combined Products 4% 14% 3%Shower Panels 8% 0% 3% 1%Bathroom furniture 7%Taps and Mixers

50

Positioning

51


Strong local brands with long brand heritage Number 1 European ceramic supplier High brand awarenss towards consumer in

countries like Skandinavia or Netherlands, Italy High brand awarenss towards the professionals

in countries like France, Germany, Italy, UK Local brands allow an individual tailor-made

approach on country level Cooperation with top designers reinforces

brand building process Decentralized marketing structure Strong know-how of local needs is also a key

success factor in communication


High complexity in communication : each countryhas its own presentation in form of broschure,homepage, pos material – higher marketing costs

Cross selling of product lines between countriesoffers small synergies in communication

Low brand awareness towards consumer in F,Germany leads to lower pull effect of consumers

52


Globalisation of society leads to worldwidemore homogenous consumers

Development in societies: pleasure seeking,ageing of society -> senior citizens have highpurchasing power in industrialised countries

BRIC – Brasil Russia India China new youngerconsumer potentials

Risiken/ Threats

Demografy is destiny: missing young consumer inEurope

Xxxx xxx

53

Products

54


Country specified assortments e.g. showers:(Koralle/IFÖ) Ceramics: (Twyfords/Keramag)

Main focus on local mainstreamy lifestylishseries (european style potential)

Selling of design collections under differentbrand names (F 1: Keramag, Sphinx)

High presence within professional domain Cross selling products (Pozzi – Sphinx 390, Sphinx-DIY, IFÖ-Russland


Decentralised competence centers (Wellness ITA)promote development of local products ( Revita,Albatross)

different levels of requirements for cross selling products

55


High product acceptance by nationalconsumers because of well-known regionalbrands

High Flexibility Reduced „Time to market“ phase by using

existing local assortments High efficiency in the products and production

area because of a european production network Differentiation CA&E/Wellness into different

product groups such as „Volume“ and „highneed of service level“

Focus on not yet used market segments Multi national product focus allows the

integration of individual as well as differentaspects within the domain of ethic and culture

Risiken/ Threats

Loss of know how (Koralle/IFÖ) due to re-organisation

Longer process of decisions and coordination Loss of Uniqueness (F1 among different brands) xxx

56


Landesspezifische Sortimente (z.B. DuschenKoralle, IFÖ; Keramik Twyfords, Keramag,IFÖ))

Fokus auf länderspezifische, mainstreamigeGeschmackswelten ( european styl potential)

Vermarktung von Designserien unterverschiedenen Marken ( F 1 : Keramag, Sphinx)

Starker Profi-Bereich Cross -selling Produkte ( Pozzi - Sphinx 390, Sphinx

-DIY, IFÖ - Russland)


dezentrale Kompetenzzentren ( Wellness IT) fördern"landesspezifische" Produktentwicklungen ( Revita,Albatross)

unterschiedliche Anforderungsniveaus an crossselling Produkte

xxx

57


Hohe Akzeptanz bei nationalen Verbrauchern durchregional bekannte Marken

Hohe Flexibilität Time to market kürzer durch Zugriff auf

vorhandene, lokale Sortimente Hohe Produkt - und Produktionseffizienz durch

europ. Produktionsnetzwerk Differenzierung CA&E / Wellness in

"Volumenprodukte" und "beratungsintensiveProdukte"

Fokussierung auf nicht genutzte Marktsegmente Multi - nationale Ausrichtung erlaubt die Integration

individueller und ethischer bzw. kulturellverschiedener Aspekte

Risiken/ Threats

Verlust von Know How ( Koralle, IFÖ) durchNeuorganisation

Längere Entscheidungs - und Abstimmungswege Verlust von Uniqueness (F1 unter verschiedenen

Marken) xxx

58

Company DE BE FR NL CH IT PL UK FI SE NO RU AT Balt UA IE Ceramic Furniture Acryl Steel T&M Enclosures MFC Whirlpools

Allia x x x x x x

Kolo x x x x x x x x

Pozzi-Ginori x x x x

Sphinx x x x x x x x x x

Panda x x x x

Ido x x x x x x x x x x

Keramag x x x x x x x x x x x

Varicor x

Selles x x x x

Twyford x x x x x x x x x

Albatros x x x x

Revita x x x x x x x x x x x x x x x x x x

Koralle x x x x x x x

Leda x x x

Bathtubs

Markets Products

59Bild Geschäftsbericht 2004, S. 11

Sanitec divisions

60

Cross selling of brands into new markets

61

Steam lining of product portfolio


Product portfolio managment process


Group legal structure

64

Management

65


Our Management team understands the localneeds well because they are local

The management has a high degree of freedomin their decision making; this makes themindependent and much faster

Our management team is quiet young We have access to extensive management

expertise from the Wallenberg group Xxxx Xxxx


our management team has undergone somechanges (CEO and CFO)

we have a long history of overpredicting profits xxxx xxx

66


Xxxx Xxxx

Risiken/ Threats

xxxx xxxx xxx

67

Our strategy at EQT

We have created value in portfolio companies through:Sales growth Increasing sales through organic growth and acquisitions. Margin expansion Increasing operating profits. Strategic repositioning Utilizing changing industry dynamics, investing in future technologies and divesting non-core businesses, thereby creating a base for multiple expansion.Financial engineering and pay-down of debt has little impact on EQT's value creation, due to significant investments made in the businesses.

Print

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Finances

69

SWOT Finances

Cash fromsale of evac 70 Mioreduction of Lecico holdingsale of Sphinx location 45 Mio

70

Our performance used to belong to the best in our industry. The acquisition of Sphinx, but especially the burdens imposed by BC Partners drove this down to an very unsatisfactory level

994,5985,4951,1898,9

496,4570,8

630

877,3

0

200

400

600

800

1.000

1.200

1997 1998 1999 2000 2001 2002 2003 2004

Sal

es in

mln

€

Bathroom Ceramic Bath & Shower products

Evac Total

10%

5% 5%

3%

9%

13%14%14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1997 1998 1999 2000 2001 2002 2003 2004

Ebi

t mar

gin

in %

Bathroom Ceramic Bath & Shower products

Evac Total

Sanitec Corporation in one sentence

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