CEO statement May 2014

Annual General Meeting 2014

2

Leading markets positions in the stronger economics of Europe

Sanitec—Home of the Bathroom

Unique portfolio of leading and longstanding brands with a loyal customer base

One Sanitec—fundamentally improved industrial platform

Strategy founded on organic growth and incremental efficiency improvement

Highly experienced management with proven track record

Strong cash flows and solid financial position

Industry with significant cyclical upside

Mature and consolidated industry with high barriers to entry

Selection of products

By product area

Central & North Europe

56%

East Europe

16%

Other 28%

By geography

Sales split 2013

Bathroom ceramics

Ceramics complementary products

Key financials

(€m) 2010 2011 2012 2013

Net sales 777 771 753 702

Adj. EBITDA 77 106 108 103

% margin 9.9 13.7 14.3 14.6

Cash conversion (%) 53 78 88 82

Bathroom

ceramics 76%

Ceramics complem

entary products

24%

Leading positions in the stronger economies of Europe

Excellent geographical footprint

Source: BRG Consult ("BRG"), IMF WEO April 2014, Region East Europe figures from 2013

Market size: €2.7bn

GDP growth: 1.5%

Central Europe (31%)

Market size: €0.7bn

GDP growth: 1.9%

North Europe (25%)

Market size: €1.2bn

GDP growth: 2.3%

East Europe (16%)

Market size: €2.3bn

GDP growth: 1.2%

South Europe (17%)

Market size: €1.2bn

GDP growth: 2.6%

UK & Ireland (7%)

Sanitec market position within bathroom ceramics (by volume)

No. 1 or 2 No. 3 or 4

Clear no. 1

Unique portfolio of leading and longstanding brands

Strength of brands and customer relationships evidenced by sticky market shares

Sanitec bathroom ceramics market share in core markets by value

61 67

36 32 27 18 17 21 17 17

(%)

North

(Sweden, Finland, Norway, Denmark)

Central

(Germany, the Netherlands,

Belgium)

South

(France, Italy)

East

(Poland, Ukraine, Russia)

UK and Ireland

(UK)

Source: Management estimates based on BRG market values

Sanitec‘s national jewels

Forecast

150

180

210

240

2000 2003 2006 2009 2012 2015E

(€bn)

New build RMI

Forecast

150

200

250

300

350

2000 2003 2006 2009 2012 2015E

(€bn)

New build RMI

Industry with significant cyclical upside European bathroom fixtures market has a total market value of €8.1 billion with demand driven primarily by more resilient RMI activity

Comments Residential construction (€bn)3

Source: BRG, Euroconstruct June 2013 Notes: 1 Sanitec’s core markets by value,,Management estimate 3 Sweden, Finland, Norway, Denmark, Germany, the Netherlands, Belgium, UK, France, Italy, Poland

European bathroom fixtures Non-residential construction (€bn)3

Bathroom ceramics

Pre-wall 5%

Furniture 20%

Taps & Mixers

31%

Baths 7%

Shower 17%

Bathroom fixtures market by product (2012)1

Sanitec‘s new build vs. RMI demand exposure2

New build ~30–40%

RMI ~60–70%

Sanitec’s main market, bathroom ceramics, represents c. 20% (€1.6 billion) of the total €8.1 billion bathroom fixtures market

Long-term driver via construction market with Renovation, Maintenance and Improvement (“RMI”) being more resilient and cyclicality coming from new build

Organic growth and incremental efficiency improvement

Well articulated strategic priorities

Drive value growth through innovation, renewal and streamlining of core product portfolio

Capture growth opportunities in the fragmented CCP market by using existing ceramics platform and locally proven bundling concepts

Continued expansion in higher-growth Eastern European markets, based on our existing Eastern European footprint and a select number of national jewel brands

Continue to execute One Sanitec efficiency improvement initiatives

Sanitec’s strategy Key highlights

Markets

Western Europe Eastern Europe

Rest of world

CC

P

Bat

hro

om

ce

ram

ics Drive value through innovation

and product leadership

Pro

du

ct a

reas

Grow Eastern Europe

Grow ceramics complementary products

1 4

3

2

2

3

4

1

Exp

loit

o

pp

ort

un

itie

s

Notes:

1 Adjusted EBITDA margin

2 Reported EBITDA margin for the Bathroom and Wellness division only

3 Reported EBITDA margin, FIGURES FOR 2012

4 Adjusted EBITDA margin, pro forma adjusted for the Joyou acquisition

EBITDA margin full year 2013

3,1

9,9

7,4

11

,4 14

,6

19

,7

25

,9

0

5

10

15

20

25

30

EBITDA

margin (%)

Rovese3

Bathroom peers Ceramics peers

1 3 2 4 1

Best-in-class profitability among Ceramics peers

Source: Competitor reports

Key developments during Q1

On track to deliver on all long-term financial targets

Q1 2014 EBIT-margin

10.6% +2.9 p.p. y-o-y

Q1 Net sales in Germany

10% y-o-y

Q1 2014 Net sales

5.4% y-o-y

Q1 cash conversion 88%

Organic growth in 4 of 5 regions during Q1

One Sanitec delivers

Exceeding financial cash conversion target

Recovery in the European economy

1) Change calculated in constant currency and comparable legal structure i.e. organic change

1

Quarterly sales and profitability development

Comments Quarterly sales1 and profitability

190 181 168 177 182 175 168

184

11.1

8.9

10.0 8.5

11.0

12.1 10.7 10.6

0

2

4

6

8

10

12

14

16

18

0

50

100

150

200

250

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

(%) (EUR million)

Organic sales Adj. EBIT margin Note:

1 Net sales with comparable legal structure after the divestment of Leda in October 2012, i.e. organic change

Clear improvement in relative performance quarter over quarter since beginning of 2013

Continued successful “One Sanitec” implementation

Revenue synergies

Improved sourcing

Rightsizing benefits

Manufacturing efficiency

Sales split by geography

Comments Net sales by regions¹

Note:

1 Reported net sales, not adjusted for sale of Leda in October 2012

Recovery driven by strong performance in Central Europe

Strong performance in Central Europe driven by Germany

Strong performance in the Nordic Region

Stabilisation in South Europe

Political turmoil in East Europe

UK leading the recovery

54.8 49.4 55.9 54.2 57.2 50.6 59.4

42.2 45.1 44.9 50.4 39.8

43.3 47.6

34.2 26.7

32.3 32.2 27.8 25.4

32.1

36

29.5 26.5 28.1

31.3 27.9

26.1

13.5

12.1 12.8

11.9 13.2

13.8

13.6

5.9

5.1 4.4

5.4 6.1

6.5

4.9

0

25

50

75

100

125

150

175

200

225

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q1 2014

(€m)

Central North South East UK and Ireland RoW

6%

Q1 Y-o-Y growth

9%

(1)%

5%

4%

10%

Notes:

Change calculated vs. prior period in constant currency and comparable legal structure after e.g. divestments, i.e. organic change

Dividend and distribution of

funds policy c. 50%

The Board of Directors proposes to the AGM that no dividend be distributed from the result for the year nor from retained earnings, and that EUR 22,000,000, i.e. EUR 0.22 per share, is paid as refund of capital from the reserve for invested unrestricted equity equals 52% of profit for the period.

Growth above market +2 p.p.

(5,4) (3.9)

1.4

(10)

0

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

(%)

Relative growth

improvement

quarter by quarter

Operating margin ≥12% 8.5 11.0 12,1 10.7 10.6

0

10

20

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

(%)

Continued improved

margins y-o-y

Cash conversion >70% 53

78 88 82 88

40 60 80

100

2010 2011 2012 2013 Q1 14

(%)

Continued strong

cash conversion

Net debt/

EBITDA <2.5x 2.1

1.8 1.5 1.6

0

2

3

Q2 2013 Q3 2013 Q4 2013 Q1 2014

(x) Comfortable

headroom to our

maximum

leverage target

Strong financial performance—on track to deliver on our long-term financial targets

Update on our long–term financial targets

(10,9) 5,4

Q&A