EANS-News: Villeroy & Boch in the 2011 financial year: (with document)

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annual result

Mettlach, 27 March 2012 (euro adhoc) - • Revenue up 4% to Euro 743
million • Operating EBIT (before special income) increases by 17% to
Euro 28 million • Proceeds of around Euro 9 million from disposal of
former plant buildings in Lübeck-Dänischburg • Group result improves
to Euro 18 million

Revenue growth despite lower demand in fourth quarter

In the 2011 financial year, the Villeroy & Boch Group generated
revenue of Euro 743 million, up 4% on the figure of Euro 714 million
recorded in the previous year. Following an encouraging first half of
the year, the spread of the government debt crisis and the shocks it
provided to an already weakened financial sector had a negative
impact on demand for consumer and investment goods around the world.
Some of the European markets that are particularly important to
Villeroy & Boch´s business were hard hit by this development. Despite
this, revenue remained unchanged year-on-year in the fourth quarter.
Revenue of Euro 208 million was generated on the German market, an
improvement of 16%, while revenue outside Germany remained at the
prior-year level of Euro 535 million. Russia and China recorded
substantial growth. This was offset by declining revenue in the USA
in particular due to the closure of unprofitable retail locations and
unfavourable exchange rates.

Significant improvement in EBIT and Group result

Operating earnings (EBIT before gains on the disposal of property)
increased as against the previous year to total Euro 28 million. This
development was driven in particular by the higher level of revenue
compared with 2010 and the reduction in production costs. The
disposal of the former plant buildings in Lübeck-Dänisch¬burg
resulted in proceeds of around Euro 9 million, meaning that EBIT
after special income increased to Euro 37 million. All in all, a
positive Group result after interest and taxes of Euro 18 million was
recorded.

Development in the divisions

Both divisions contributed to the Group´s positive business
development in 2011. The Bathroom and Wellness Division generated
revenue of Euro 462 million in the 2011 financial year (up +3%
year-on-year). Germany (+11%) and the markets in China (+64%),
Ukraine (+54%), Russia (+25%), Belgium (+7%) and the Netherlands
(+5%) were particularly strong performers. All product ranges in this
division delivered positive growth. The highest growth rates were
recorded in the area of bathroom furniture, where revenue was up 17%
year-on-year. The Tableware Division generated revenue of Euro 281
million in 2011, up 5% on the previous year. In this division, too,
development was driven in particular by business in Germany (+23%)
and was attributable to a large extent to a major project with a
supermarket chain (Euro 13 million). Total revenue in the division´s
foreign markets declined by 2% year-on-year. There was substantial
growth in Russia (+20%), the rest of Eastern Europe (+24%),
Switzerland (+16%) and Sweden (+13%), while revenue declined in the
USA and Australia in particular.

Operating cash flow

The net cash flow from operating activities amounted to Euro 34
million in 2011, up Euro 3 million on the previous year. This change
is due to the improved operating result.

Net liquidity

Net liquidity improved by Euro 22 million year-on-year to total Euro
8 million. This development was driven in particular by the current
net profit and the proceeds from the disposal of the former plant
buildings in Dänischburg.

Dividend

The Supervisory Board and the Management Board will propose to the
General Meeting of Shareholders on 16 May 2012 that the
unappropriated surplus of Villeroy & Boch AG be used for the
distribution of a dividend in the amount of Euro 0.40 per preference
share and Euro 0.35 per ordinary share.

Capital expenditure

In the 2011 financial year, the Villeroy & Boch Group invested a
total of Euro 26 million in property, plant and equipment and
intangible assets (up 8% on the previous year), 50% of which was
invested in Germany. At 69%, the majority of investment activities
related to the Bathroom and Wellness Division.

Outlook and development in 2012

"We are extremely satisfied with the past financial year. Following
our stabilisation in 2010, we have recorded revenue growth once again
and improved our operating earnings by an impressive 17%," commented
CEO Frank Göring. "In light of the recent deterioration in the
economy, we are forecasting stable business development in 2012 for
the time being, with a slight improvement in the second half of the
year. All in all, we expect operating earnings in 2012 to fall within
a range of +/- 15% compared with 2011. Unfortunately, the unresolved
government debt crisis and the fragile sentiment in the financial
sector mean that a more concrete forecast is not possible at
present." In line with this outlook, business was muted in the first
two months of 2012, with the Group recording moderate revenue growth
of 1% in January and February. Despite the difficult macroeconomic
situation, Villeroy & Boch is aiming to generate consolidated revenue
of between Euro 750 million and Euro 760 million in the 2012
financial year.

Please read the complete Press Release with Consolidated figures in
accordance with IFRS in the PDF attachment.

The complete annual report as a PDF-file for download: http://www.vil
leroy-boch.com/de/de/home/unternehmen/investor-relations/berichte.htm
l Or new!: read the online report:
www.villeroy-boch.com/annual-report

Attachments with Announcement:
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http://resources.euroadhoc.com/us/MFr1xgZ2
http://resources.euroadhoc.com/us/5C0Y01sO

Further inquiry note:
Villeroy & Boch AG
Frau Almut Hähner-Ural
Leitung Presse und Öffentlichkeitsarbeit Saaruferstraße
D-66693 Mettlach
Tel.: +49 (6864) 81-1397
E-Mail: presse@villeroy-boch.com

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/MFr1xgZ2
http://resources.euroadhoc.com/us/5C0Y01sO

company: Villeroy & Boch AG
Saaruferstraße
D-66693 Mettlach
phone: +49-(0)6864-81-0
FAX: +49-(0)6864-81-2692
mail: info@villeroy-boch.com
WWW: http://www.villeroy-boch.com
sector: Consumer Goods
ISIN: DE0007657231
indexes: CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated
dealing/prime standard: Frankfurt
language: English