EANS-News: Villeroy & Boch AG / interim report on the first half of 2012 (with document)

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6-month report

Subtitle: Revenue and income up in difficult economic environment

Mettlach, 23 July 2012 (euro adhoc) - Revenue in H1 up slightly year
on year at EUR363.2 million - EBIT improves by 12% as against
previous year to EUR11.9 million - Economic environment deteriorates
further

Revenue up slightly despite difficult economic environment

In the first half of 2012, the Villeroy & Boch Group generated
revenue of EUR363.2 million compared with EUR362.4 million in the
same period of the previous year.

Global economic development remained uneven. The risks as a result of
the crisis of debt and confidence in the euro zone have again
increased. Despite this, in the first half of 2012 revenue increased
slightly year on year. Revenue of EUR97.3 million was generated on
the German market, an improvement of EUR3.2 million or 3%. Revenue
outside Germany was EUR265.9 million, slightly down on the prior-year
level.

Increased orders on hand

Orders on hand totalled EUR57.2 million as at 30 June 2012. Adjusted
for the extraordinary order in the Tableware Division in the previous
year, consolidated orders on hand increased by 3%.

EBIT significantly improved (12%)

Operating earnings before interest and taxes (EBIT) amounted to
EUR11.9 million in the first half of 2012, up EUR1.3 million or
around 12% on the previous year.

The extraordinary income from the sale of the sanitary ceramic plant
in Saltillo, Mexico, from the first quarter is partially offset by
the expenses for the expansion of activities in the growth markets of
Russia and China.

Development in the divisions

In the first half of 2012, the Bathroom and Wellness Division
generated revenue of EUR245.3 million, up 1% or EUR3.5 million on the
previous year.

There were differences in terms of regional revenue development. In
the second quarter, the above-average revenue growth in Russia and
Germany continued, with year-on-year growth rates of 35% and 12%
respectively. This was also seen alongside a downturn in revenue in
Mexico, the sale of the plant in Saltillo resulting in a targeted
withdrawal from low-margin project business.

The Tableware Division generated revenue of EUR117.9 million in the
first half of 2012, down 2% year on year.

This was due to the ongoing reluctance among retailers to place
orders, particularly in Germany (-11%). Market development was
similarly difficult in Australia (-12%). By contrast, there was
encouraging revenue growth in Russia (+21%), Canada (+14%) and
Scandinavia (+9%).

Investments

The Villeroy & Boch Group made investments of EUR11.2 million in the
first half of the financial year (previous year: EUR13.8 million). Of
this figure, 63% related to the Bathroom and Wellness Division and
37% to the Tableware Division.

Outlook for the whole of the 2012 financial year

Economic risks in the euro zone intensified recently, particularly in
Southern Europe. This will further increase the level of uncertainty
among companies and consumers in the euro zone and beyond and result
in the economy weakening further in the important euro zone markets
for Villeroy & Boch during the second half of the year.

In this context, for the 2012 financial year, Villeroy & Boch is
forecasting consolidated revenue of EUR745-755 million and operating
earnings at or slightly above the earnings level of the previous year
before real estate gains (EUR27.9 million).

"Despite the difficult economic environment, in the first six months
of 2012 we slightly improved revenue year on year", declared Villeroy
& Boch CEO Frank Göring. "In the second half of the year there will
be even greater challenges. The euro zone - our main market - is
still in the middle of the crisis. We are meeting this trend in a
decisive fashion - by steadily developing our growth markets and
ongoing systematic cost discipline."

Please read the complete Press Release with Consolidated figures in
accordance with IFRS in the PDF attachment. The complete Interim
Report as a PDF-file for download: http://www.villeroy-boch.com/en/eu
o/home/the-company/investor-relations/reports.html

Attachments with Announcement:
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http://resources.euroadhoc.com/us/Ta4RTAb5
http://resources.euroadhoc.com/us/iHrAi7Vb

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/Ta4RTAb5
http://resources.euroadhoc.com/us/iHrAi7Vb

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