DGAP-News: Villeroy & Boch AG

DGAP-News: Villeroy & Boch AG:

DGAP-News: Villeroy & Boch AG / Key word(s): 9-month figures/Interim Report Villeroy & Boch AG:

21.10.2016 / 08:00 The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Press Release Mettlach, 21 October 2016



Interim report on the third quarter of 2016: Villeroy & Boch increases revenue and earnings/Goals for 2016 confirmed

* Consolidated revenue up 4.2 % on a constant currency basis and 2.8 % in nominal terms to EUR 594.7 million

* EBIT improves by 7.7 % to EUR 23.8 million

* Growth and earnings targets for 2016 as a whole confirmed



Revenue development: +2.8 % year-on-year

In the first nine months of the 2016 financial year, the Villeroy & Boch Group increased its revenue by 2.8 % year-on-year to EUR 594.7 million. On a constant currency basis, i.e. assuming unchanged exchange rates against the previous year, revenue growth amounted to 4.2 %. In its home market of Germany, the Group recorded revenue growth of EUR 10.9 million or 6.6 % to EUR 176.9 million. Revenue abroad amounted to EUR 417.8 million, up 1.3 % on the previous year. Orders on hand amounted to EUR 85.9 million as at 30 September 2016, an increase of EUR 22.6 million as against 1 January 2016. Of this figure, EUR 69.8 million was attributable to the Bathroom and Wellness Division.

EBIT improves by 7.7 % to EUR 23.8 million

EBIT for the first nine months of the financial year increased by EUR 1.7 million or 7.7 % to EUR 23.8 million. This includes non-recurring income from the sale of properties in connection with the property project in Gustavsberg (Sweden) in the amount of EUR 1.2 million (previous year: EUR 1.0 million).

Development in the divisions

The Bathroom and Wellness Division generated revenue of EUR 395.5 million in the first three quarters of 2016, an increase of 6.9 % as against the previous year. Revenue rose by 8.7 % on a constant currency basis; the main negative exchange rate effects resulted from the development of the Russian rouble, the pound sterling, the Mexican peso and the Norwegian krone. In its home market of Germany, the division recorded revenue growth of EUR 12.5 million or 11.7 % in the year to date. While the upturn in Germany was attributable in particular to the high level of demand for rimless DirectFlush WCs and bathroom furniture, the ViClean shower toilet is one of the most successful products in China (+48.4 %). Significant revenue growth was also recorded in Sweden (+8.8 %) and the Benelux countries (+8.4 %). Revenue declined in Russia (-12.1 %) and Italy (-9.3 %). The Tableware Division generated revenue of EUR 199.2 million in the first nine months of 2016, down 4.4 % on the previous year. Revenue decreased by 3.9 % on a constant currency basis; the main negative exchange rate effects resulted from the development of the pound sterling. Tableware revenue in Germany amounted to EUR 57.4 million (-2.7 %). Downturns in revenue were also recorded in the USA (-7.9 %) and the United Kingdom (-7.2 %) in particular. China saw positive performance, with revenue doubling on the back of strong project business with hotels and restaurants in particular. The division also recorded substantial revenue growth in South Korea (+21.0 %) and Russia (+17.3 %). The Group's own e-commerce business continued to enjoy positive development across all sales markets (+7.7 %).

Investment volume in the first nine months of 2016: EUR 12.9 million

The Villeroy & Boch Group made investments totalling EUR 12.9 million in the first nine months of 2016 (previous year: EUR 16.3 million). 68.2 % of the investment volume was attributable to the Bathroom and Wellness Division and related primarily to new facilities and modernisation measures at the production sites in Germany, Hungary and France. Investments in the Tableware Division also concentrated on new facilities for the plants in Merzig and Torgau, as well as the expansion of retail activities.

Outlook for 2016 as a whole

The Villeroy & Boch Group is still anticipating moderate macro-economic growth for the year as a whole. "We expect the European economy to remain robust thanks to factors including the high level of momentum on the employment market and the sustained strong performance of the construction industry. Our important home market of Germany is set to continue its solid upturn," commented Frank Göring, CEO of Villeroy & Boch AG. The forecast for the 2016 financial year remains unchanged at the end of the third quarter. Göring: "Based on our assessment of the market and the course of business in the year to date, we still expect consolidated revenue to increase by between 3 % and 6 %, with the operating result improving by between 5 % and 10 %."





Please find the complete Interim Report as a PDF-file for download here: http://www.villeroyboch-group.com/en/investor-relations/reports.html

Further inquiry note: Katrin May Press & Public Relations Tel: (+49) 6864 81-2714 Fax: (+49) 6864 81-72714 Mail: presse@villeroy-boch.com

or

Nicole Hofmann Press & Public Relations Tel: (+49) 6864 81-1365 Fax: (+49) 6864 81-71365 Mail: presse@villeroy-boch.com

---------------------------------------------------------------------------

21.10.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

---------------------------------------------------------------------------

Language: English Company: Villeroy & Boch AG Saaruferstraße 1-3 66693 Mettlach Germany Phone: +49 (0)6864 81-0 E-mail: information@villeroy-boch.com Internet: www.villeroy-boch.de ISIN: DE0007657231, DE0007657207 WKN: 765723 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------

513283 21.10.2016