Sanitec Corporation in one sentence

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2. Sanitec Corporation in one sentence • is a European multi-brand group that • designs, manufactures and markets bathrooms ceramics and bath and shower products, • is based around locally well known brands • maintains a leading position as No 1 or 2 in all its European core markets, • strives to be a globally successful player in core growing markets • is clearly No1 in price leadership • and driven by profitability. We aim to have an EBIT of 15-20 %. 2

3. We divide our structure in Ceramics, Acrylics & Enclosures (CA&E) and Wellness, although in reality it is more generalist brands versus specialists 3

4. Ceramics (series) Central Eastern Europe North East Europe Central Europe F + BE IT Benelux UK + IE Sphinx Twyford Keramag / Varicor Allia Selles Pozzi-Ginori Kolo Ido Ifö Porsgrund Join Renova Nr. 1 (Profi) Eurobase (Profi) Advent (eco) Prima (Profi) Royan 2 (Profi) Nova (Profi) No information Easy02 Galery (mid range) Renova Nr. 1 Plan (Profi) Bastia (Profi) Sully Sphinx 390 500 Montebianco Preciosa Renova Nr. 1 Pro Varicor (Profi) Ydra Desirade City Fantasia 4 Colibrì

5. Acrylics (series) Central Eastern Europe North East Europe Central Europe F + BE IT Benelux UK + IE Koralle Allia Selles Albatros Revita Sphinx Twyford Kolo Ido Ifö Porsgrund Market for steel bathtubs + trays Royan 2 (Profi) Erica-Revita Prima (Profi) Ethos-Albatros No information No information No information Normaline Sully Bastia (Profi) Riviera New Vanity-Revita Ethos-Albatros 5

6. Enclosures Central Eastern Europe North East Europe Central Europe F + BE Benelux UK + IE Koralle Leda Sphinx Twyford Kolo Ido Ifö Porsgrund Supra Top Supra Top Solid 7-4 No information No information No information Tendance Twiggy Top Twiggy Top 7-3 Solid Cabins* 6-5 Cabin* Edition Norma Top (Profi) Cornette Cabin* *typical: complete shower cabin 6 Edition

7. Wellness (whirpools + MFCs) Central Eastern Europe North East Europe IT Central Europe F + BE Benelux UK + IE Koralle Allia Albatros Revita Sphinx Twyford Kolo Ido Ifö Porsgrund Noon (Acryl) Accent (Acryl) Ethos Prima (Profi) Erica No information No information No information Feel (Acryl) Havanna (Acryl) Ethos New Vanity No MFC 6-5 & 6-6 enclosure+MFC Kalambò Progress Forte Master Plus My Time 7

8. History/ Strategy 8

9. Our history (1/2) • Our history as Sanitec started in 1990 when Wärtsilä Corporation (later Metra) merged its bathroom activities, and our group then consisted of Ido Bathroom (FI), Ifö Sanitär (SE), Porsgrund (NO) and Evac (FI). • The success of our business model, to concentrate on the established market leader (#1 or 2), has guided us on our growth path: • In 1991 we acquired Allia (FR)and Keramag (DE), two leading bathroom suppliers in their home markets • In 1993 Pozzi-Ginori (IT) and Sanitec Kolo (PL) followed. Both companies are leading bathroom suppliers in their home markets • With FAS (FR) in 1993 we ventured for the first time into the acquisition of a specialist supplier (acrylic bathtubs). In order to conserve our focus, we integrated FAS later under Allia. • More specialists came in 1995 with Laminex (PL; acrylic bathtubs and whirlpools) and Varicor (DE; solid surface washbasins and sinks) • In 1997 we took 50% holdings in Johnson Suisse (Malaysia), and in Lecico (Egypt), both bathroom suppliers, although tending to concentrate on ceramic sanitaryware • With Domino (IT) in 1998 we acquired the brands Albatros and Revita for acrylic bathtubs and shower trays, whirlpools and multi-functional cabins, which was not only strong in Italy, but also in several other markets. • In 1999 we acquired most of the Sphinx-Gustavsberg Group (but “lost” Gustavsberg to Villeroy & Boch). This brought us not only Sphinx (NL), but also Selles (FR) and Koralle (DE). In this year we also bought the remaining 50% of Johnson Suisse in Malaysia. 9

10. Our history (2/2) • The year 1999 was also important in another respect, because Metra, our mother company, introduced us on the Helsinki stock exchange • In 2001 we made our (until now) latest major acquisition with Twyford (UK). • Later in 2001, the European private equity fund BC Partners took over the entire share capital from Metra and other share holders. In November we were therefore delisted from the stock exchange • In 2004 we sold Evac (environmental solutions) as being a non-core activity and we decreased our participation in Lecico (Egypt) to 20% although we maintain our sourcing relationship • In 2004 we also closed the loss-bringing CSW factory ofSanker in Slovakia and the acrylic bathtub factory in Hirzenhain (Germany). We furthermore announced the restructuring of the factory of Sphinx in Maastricht (Netherlands). We finally also announced the planning of a new acrylic factory near Kiev (Ukraine) • In 2005 we announced: • investment of a new CSW factory inPoland • joint venture with Hocheng from China for building a new acrylic factory • joint venture with Santek (Russia) for the production of ceramic sanitaryware. • A review of the Alsager plant (UK) • In April 2005 the private equity fund EQT acquired Sanitec from BC Partners • In 2006 we closed the shower cabin production in Norrtälje and moved it to Mörrum 10

11. Our history (2/2) • In 2003 we announced an alliance with Hindustian Sanitaryware regarding the sale of Keramag in India • In 2004 we announced a separate sales organisation for the project sector in BeNeLux 11

12. The main steps in our history show the consistent external growth 12

13. As Sanitec itself, most of our international competitors cover almost the entire spectrum of bathroom products, but often more evenly spread Legend: X = minor weight in sales of company XX = medium weight in sales of company XXX = great weight in sales of company Source: Sanitec research 15

14. Our strategy Sanitec strives for becoming a leading European provider for bathroom solutions, with the customers and market needs as the driving force of our strategy and operations. We aim to be a global and successful player in the core growing markets, particularly in Eastern Europe, Middle East and Asia. Today, Sanitec is transforming from a decentralised group of individual companies into a single, pan European multi-brand company. We are confident that acting as an integrated group, we are stronger and are enabled to realise growth opportunities today and in the future. Simultaneously, we open up the potentials of our businesses by focusing on cost leadership and efficiency on the one side, and on innovation, flexibility and outstanding customer service on the other. Our strong local brands with long established roots are cherished and valued as one of our key strengths. We compete both locally and globally, having the local knowledge and expertise as well as the understanding of the bigger picture to better serve our customers. We do not strive to replace our strong brands by a global Sanitec brand. Indeed, we would not be able to protect our brand as this name has already been taken by local players in markets like France 16

15. Production 17

16. Sanitec: production in Europe only, but with sourcing from beyond (e.g. Lecico) Production locations Sanitec (in red) Total capacity: Europe: 12 mln pcs World: 12 mln pcs Note: flags in blue indicate sourcing partners 18

17. More details on our network for ceramic sanitaryware 19

18. More details on our network of non-CSW factories 20

19. Global presence of the main competitors in CSW (year 2004) 500 400 300 200 100 Europe Asia America Ceramics (incl. sinks and DE FR UK/IE IT BNL Sca ES/PT RU Oth JP CN IN Rest US CA MX Rest showers) EUR S+OA S-Am Size (m€) 278 320 378 350 102 165 253 173 372 475 702 186 >700 1.209 100 124 >240 Villeroy & Boch American Standard Duravit Eczacibasi Grohe Inax Jacuzzi brands Kludi Kohler Masco Roca Sanitec Toto Legend: Market share (volume): > 15% Market share (volume): >2% - <5% Market share (volume): >5% - <15% Market share (volume): <2% 21

20. Year 2005 Turnover by brand:(in Euro)Ido: (04) 100 Mioifö (04): 125 MioKolo (04): 52 MioSphinx (03): 128 MioKeramag (05): 118 MioKoralle (05): 36 MioTwyford (03): 111 MioAllia (04): 170 MioDomino (03): 54 MioPozzi-Gin. (03): 51 MioLecico 22

21. North-West Europe is where we are leading the market 23

22. Our strategy products current new Penetration Development/ Innovation current markets new Internationalisation Diversification 24

23. We see great potential for us in raising the market share in bath and shower products Avg 21 % Avg 8% 25

24. Our strategy products current new current • Penetration: • keeping our No 1 or 2 market position by focussing on cost leadership and very close contact to our customers esp. Installers • Closing the gap in European market shares between CSW 21 % and acrylics (bathtubs/ shower trays) 8% markets new 26

25. Our strategy products current new Penetration Development/ Innovation current markets new Internationalisation Diversification 27

26. - best product - sets standards - determines Innovations Product Leader Price Leader Customer Leader - has the best price - sets price standards - small assortment - cost leadership - best overall solution - sets relationship standards - wide spectrum of performance - high service level 28

27. Our strategy products current new current • Development/ Innovation: • we define ourselves not as the cutting edge innovator; but our strong industrial presence allows us to adopt innovations quickly at competitive prices markets new 29

28. Our strategy products current new Penetration Development/ Innovation current markets new Internationalisation Diversification 30

29. Land Area

30. Population Area Total Population populationgrowth demand

31. Our strategy products current new current • New markets/ Internationalisation: • exploring Eastern European markets • acrylic factory in Ukraine • CSW factory in Poland • Joint venture in Russia • putting a foot into Near Middle East • investment in CSW factory Lecico (Egypt) • exploring booming project markets in Saudi peninsula • first steps in Asian emerging markets • Distribution agreement in India markets new 33

32. Our strategy products current new current • New markets/ Internationalisation : • use of cross-marketing potentials by introducing our existing brands into new markets • focussing on project sales with specialised sales forces • Northern Europe, BeNeLux, Germany, NME • moving into new premium market segments with products like F1, Flow, Citterio markets new 34

33. Our strategy products current new Penetration Development/ Innovation current markets new Internationalisation Diversification 35

34. We group business segments according to their underlying production process (volume vs. Complexity) 36

35. Our strategy products current new current • Diversification: • we are clearly focussing on volume drivenproduct segments in the bathroom like CSW and acrylics • as our customers in the trade are the ones to combine the bathroom we do not focus on offering a complete bathroom; therefore we do not diversify into heating, taps, accessories, tiles etc. markets new 37

36. Our strategy products current new Penetration Development/ Innovation current !! markets new Internationalisation Diversification !! 38

37. Internationality Product segment or niche driven Lifestyle full liner Domestic market focus low internationalisation 39

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39. Backup 41

40. SWOTonly Sanitec team

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43. Strategy for low cost/high cost production • Upper range products are produced in one or two specialized factories, smaller volumes. • Mid and lower end products are produced in several factories, higher volumes. • Local factories are no longer meant for local markets. • Existing old factories are closed down and substituted by smaller automated factories. (examples: Ifö, Ido, Sphinx and Twyfords) • Cost reduction by copying the best practice to the other factories. • Automation will increase efficiency and reduce costs. (examples in GB, NL, SE and F) 45

44. Sales 46

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47. More details on our market shares 49

48. Positioning 50

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