DGAP-News: Villeroy & Boch AG / Key word(s): Final Results Villeroy & Boch in the 2013 financial year 07.02.2014 / 11:30 --------------------------------------------------------------------- Press Release Mettlach, 7 February 2014 * Group result up 63 % year-on-year at Euro 24 million (previous year: Euro 15 million) * Operating EBIT up 17 % to Euro 36 million, EBIT including real estate income amounts to Euro 43 million (+40 %) * Consolidated revenue unchanged year-on-year at Euro 745 million Consolidated revenue unchanged year-on-year - highest growth recorded in Germany The Villeroy & Boch Group generated revenue of Euro 745 million in the 2013 financial year, in line with the figures it recorded in the previous year (+0.2 %). Revenue adjusted for currency effects increased by Euro 8 million or 1.3 %. The Group recorded its highest revenue growth in its domestic market of Germany, where revenue rose by Euro 10 million year-on-year to Euro 213 million. Elsewhere in Europe, the Group achieved notable revenue growth in Spain (+8 %) and Scandinavia (+3 %). The weakness of the construction industry led to lower revenue in the Netherlands (-7 %), France (-6 %) and Italy (-4 %) in particular. Outside Europe, business in the Asia/Pacific/Africa region developed positively (+5 %). The encouraging revenue performance in China (+4 %) was responsible for this to a large extent. In the Americas region, technical effects in connection with the change to the distribution model in the Bathroom and Wellness Division in particular meant that revenue declined by 13 %. Operating result up 17 % on the previous year, group result increases by 63 % to Euro 24 million Based on constant revenue, the operating result (EBIT) increased by Euro 5 million or 17 % year-on-year to Euro 36 million. This was achieved through productivity and quality improvements in production as well as systematic cost discipline in the area of administration and the other income generated, particularly from the settlement of pension obligations and exchange rate hedges. Taking into account the non-recurring income of Euro 7 million from the sale of plant buildings in Gustavsberg (Sweden), consolidated EBIT amounted to Euro 43 million, an increase of 40 % on the previous year. Group result improved by 63 % to Euro 24 million. Development in the divisions The Bathroom and Wellness Division generated revenue of Euro 456 million in the 2013 financial year (-2 % year-on-year). In Germany, revenue improved by 2 % in line with the development of the construction industry. Revenue growth in Europe was also recorded in Sweden and Finland (both +7 %). By contrast, the downturn in the construction industry led to lower revenue in the Netherlands (-12 %) and France (-9 %). The operating result (EBIT) increased by around 23 % to Euro 28 million as a result of productivity and quality improvements in production and systematic cost management in the area of administration. The Tableware Division generated revenue of Euro 289 million in 2013, up 4 % on the previous year. There was particularly encouraging revenue development in Germany (+10 %), which was largely attributable to the extremely good sales of new products as well as increased marketing efforts. Revenue growth was also recorded in the Eastern Europe region (+16 %), Sweden (+10 %), Spain (+8 %) and Switzerland and the Netherlands (both +7 %). Villeroy & Boch used this growth to strengthen its position in a competitive market environment through offensive marketing activities and to make investments in strategically important markets and sales channels. As a result, the operating result (EBIT) increased only slightly by Euro 0.2 million year-on-year to Euro 8.4 million. Operating cash flow and net liquidity In 2013, the cash flow from operating activities improved by Euro 11 million to Euro 32 million. This was primarily due to the reduction in receivables from customers and inventories, which totalled Euro 8 million. This was also the reason for the Euro 5 million increase in net liquidity to Euro 9 million as of the reporting date. Dividend The Supervisory Board and the Management Board will propose to the General Meeting of Shareholders on 21 March 2014 that the unappropriated surplus of Villeroy & Boch AG be used to distribute a dividend in the amount of Euro 0.42 per preference share and Euro 0.37 per ordinary share, Euro 0.02 more than in the previous year in each case. Investments As in the previous year, the company invested Euro 26 million in property, plant and equipment and intangible assets in the 2013 financial year. Of this figure, 58 % was invested outside Germany. At approximately 70 %, the majority of investment activities related to the Bathroom and Wellness Division. Assessment of the company's position 'We exceeded our earnings target for the 2013 financial year by some distance and again improved our profitability,' commented Frank Göring, CEO of Villeroy & Boch AG. The company expects to see an improvement in economic development in 2014, particularly in its key sales markets in the euro zone. 'We are aiming to increase revenue by between 3 and 5 % on the back of the economic upturn and the further expansion of the distribution network in our growth markets,' Göring explained. 'We expect our operating result to be slightly higher than the forecast revenue growth of 5 %.' Please find the annual financial report 2013 on http://www.villeroyboch-group.com/en/investor-relations/annual-report-2013 .html Further inquiry note: Annette Engelke Head of Press & Public Relations Tel: (+49) 6864 81-1397 Fax: (+49) 6864 81-71331 Mail: [email protected] End of Corporate News --------------------------------------------------------------------- 07.02.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Villeroy & Boch AG Saaruferstraße 1-3 66693 Mettlach Germany Phone: +49 (0)6864 81-0 E-mail: [email protected] Internet: www.villeroy-boch.de ISIN: DE0007657231 WKN: 765723 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 251422 07.02.2014