1

ROCA

www.roca.es

2

Structure

G a la (ES)

Sa n ita n a (PT)

Be llav ista (ES)

S tild ux (ES)

Po o l-Sp a (PL)

R o ca Ka lev it (TR)5 0%

Eu ro pe

C a pe a (AR)

C e lite (BR)

In cep a (BR)

L o g asa (BR)

C e lima (PE)2 5%

Sa nita rio s Do min ican osC e ra mica d e l C aribe

3 1%

So u th Ame rica

Pa rrywa re (IN)Jo hn son Pe dd er

Jo h nso n Su isse (M Y)

Yin g (C N)

Asia

R o ca

L aufen

Jika (E -Eu)

Fa yan s (BG)

In ke r (H R)

C e saro m (R O)

L aufen

Roca Sanitario

C e ra m ica s d e l Fo ix

C e ram ica Belca ire

Roca Ceram ica

R ocaR oca fam ily 100%

3

Product Offer: Everything for the complete bathroom

• sanitary ware

• furniture

• bathtubs / shower trays

• shower enclosures

• whirlpools / multifunctionals

• taps

• accessories

• tiles

• Withdrawn from: heating and air-conditioning

4

Due to flat core markets and the “digestion” of Laufen our growth stopped after 2000

1.489,01.660,01.564,01.602,01.594,01.592,0

989,0895,4791,5706,7

-500

0

500

1.000

1.500

2.000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 PF

Sal

es in

m€

Roca Laufen Sanitana Divestments 2005 Acquistions 2006 Total

Note: PF = Pro Forma

5

The true core of our Group, Roca Sanitario, has an EBIT margin on industry benchmark level

14,4%15,8%13,5%

0

100

200

300

400

500

600

700

800

900

2002 2003 2004 2005

Sal

es in

m€

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Sales Roca Sanitario EBIT Roca Sanitario Margin Roca Sanitario

Margin V&B Bath & Welln Margin Sanitec

6

World-wide CSW production

7

Cost leader in CSW

Company Average Cost Price CSW

Sanitec 20 €

Duravit 17 €

Villeroy & Boch 15 €

American Standard 13 €

Kohler 12 €

ROCA 12 €

8

N° 3 in the „world market“

15,4%

14,2%

11,0%

10,6%

8,3%

6,5%

3,0%

2,9%

2,9%

1,8%

1,4%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

American Standard

Kohler

Roca

Sanitec

Toto

Villeroy & Boch

Jacuzzi

Inax

Crane

CISA

Duravit

Market shares CSW - World

Total value as basis:5,2 billion Euro (ASP)

9

N° 3 in Europe

21,4%

19,0%

14,7%

10,2%

3,5%

2,7%

2,1%

1,8%

1,6%

0% 5% 10% 15% 20% 25%

Sanitec

American Standard

Roca

Villeroy & Boch

Duravit

Kohler

Eczasibasi

Qualceram Shires

Jacuzzi Brands

Market shares CSW - Europe

Total value as basis:2,2 billion Euro (ASP)

10

Actual Strategy

11

Strategic Goal

To overtake Kohler and American Standard

to become

the world wide market leader

in the bathroom business

12

Actual Strategy: PRODUCTS

• concentration on the bathroom business (divest all other product fields)

13

Main brand - world-wide - entire product spectrum Positioning: Functionality and Quality

Main brand for central Europeconcentration on CSW (but also bathtubs, shower trays and furniture) Positioning: Design and Quality

Actual Strategy: BRANDS

Regional brands with high market share in their region

14

Actual Strategy: MARKETS

core markets (ES, PT, CH, AT)

• to hold the high market share in CSW at least constant and to diversify in other bath product categories

target markets (FR, DE, NL, IT and UK)

• to enter in these markets via price-aggressive offers in the project business (e.g. in F) or in the DIY (e.g. IT, F) or

• via acquisition of a company (e.g. in IT)

potential markets (East-Europe, Asia, Russia)

• build up production capacities in „coming or new“ markets or buy regional market positions by acquisition of attractive regional brands

15

S W O T(only Roca team)

16

Strengths

Management:

• International-minded

• Ability to handle big (Laufen) and parallel acquisitions

Brands

• high brand awareness in core markets as ES, PT, CH, AT

• strong regional brands in CZ, SK, BG as well as ES and PT

Product range

• strong position in the Professional segment in the core markets

Markets

• one sales force selling CSW, furniture, taps, bathtubs

Production

• international production in low cost countries (cost-leader!)

• good allocation geographically

General

• independent company

• high profit margin and funds from divestments allow further acquisitions / international product development and communication investments

17

Strengths

Management:

• International-minded

• Ability to handle big (Laufen) and parallel acquisitions

Brands

• high brand awareness in core markets as ES, PT, CH, AT

• strong regional brands in CZ, SK, BG as well as ES and PT

Product range

• strong position in the Profi segment in the core markets

Markets

• one sales force selling CSW, furniture, taps, bathtubs

Production

• international production in low cost countries (cost-leader!)

• good allocation geographically

General

• independent company

• high profit margin and funds from divestments allow further acquisitions / international product development and communication investments

Weaknesses

Management:

• Lack of focus outside CSW (e.g. loss of Ariston market shares)

Brands

• brand ROCA is very product orientated, no lifestyle and emotion for the products used in the showroom business

Product range

• no international „design taste“ in the ROCA range

• weak position in premium segment and Wellness offer

Markets

• weak position in important CSW markets like DE, UK, I

18

Opportunities

Markets

• good attack position for high potential markets such as East-Europe, USA and Asia

• attractive markets for high profit margins and good volumes in Europe like DE, UK, IT, Benelux and Scandinavia

Production

• use low-cost production facilities for Profi and Mainstream segments

Distribution

• attractive for world-wide distributers because of ubiquity

Communication

• opportunity now to build brand in terms of communication as basic abilities are solid

19

Opportunities

Markets

• good attack position for high potential markets such as East-Europe, USA and Asia

• attractive markets for high profit margins and good volumes in Europe like DE, UK, IT, Benelux and Scandinavia

Production

• use low-cost production facilities for Profi and Mainstream segments

Distribution

• attractive for world-wide distribution because of ubiquity

Communication

• opportunity now to build brand in terms of communication as basic abilities are solid.

Threats

Competitors

• strong final consumer brand V&B and Duravit

• strong position of AS and Kohler in USA and Asia

Distribution

• Entry of international wholesale groups (e.g. Wolseley, Saint Gobain) on Iberian market with own preferred suppliers

Legal

• Legal action against trade policy of tying trade in Spain (“Roquistas”)

20

Future Strategy To be defined:Strategic goals

BrandsCommunication

Distribution & LogisticsStrategic Alliances