1

ROCA

www.roca.es

2

Structure

G ala (ES)

Sa n itan a (PT)

Be llav ista (ES)

S tild ux (ES)

Poo l-Spa (PL)

R o ca Ka lev it (TR)50%

Euro pe

C a pea (A R)

C e lite (BR)

In cepa (B R)

L og asa (BR)

C e lima (PE)25%

Sanita rio s Do min ican osC e ra mica de l C aribe

31%

So u th Ame rica

Parryw are (IN)Jo hn son Pe dder

Jo hnso n Su isse (M Y)

Yin g (C N)

Asia

R o ca

Laufen

Jika (E -Eu)

Fa yan s (BG)

Inke r (H R )

C e saro m (R O)

L aufen

Roca Sanitario

C e ra m ica s d e l F o ix

C e ram ica Belca ire

Roca Ceram ica

R ocaR oca fa m ily 10 0%

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• Withdrawn from: heating and air-conditioning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

Sale

s 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

Sale

s in

m€

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Sales Roca Sanitario EBIT Roca Sanitario Margin Roca SanitarioMargin 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

StrengthsManagement:

• 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

StrengthsManagement:

• 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

WeaknessesManagement:

• 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