Villeroy & Boch AG · XETR:VIB3
Villeroy & Boch — Merger or Acquisition (September 2023)
21 slides from Villeroy & Boch's merger presentation, Sep 18, 2023
Slide 1: Villeroy & Boch announces the acquisition of Ideal Standard
il Villeroy & Boch 1748 announces the acquisition of iD | i & Ideal Standard , 2 fie ca a . . : ® : and joins the ranks of Europe’s largest = manufacturers of bathroom products ie _
Slide 2: Today's presenters
Today's presenters Frank Goring Chief Executive Officer Chairman of the Management Board With the company since 1997 Board Member (Bath & Wellness) since 2005 CEO since 2007 Areas of responsibility: Strategy, Legal, M & A, Compliance, Corporate Communications and Sustainability Chief Financial Offic
Slide 3: Agenda
} a Agenda 1. Key transaction highlights 2. Combination of highly complementary businesses == 3- Value creation and financial considerations
Slide 4: Strategic rationale for Ideal Standard consolidation
Strategic rationale for Villeroy & Boch and Ideal Standard consolidation C Highlights Process Villeroy & Boch has signed binding agreements to acquire all operating entities of the Ideal Standard Group. The sellers of the Ideal Standard shares are funds managed by Anchorage Capital Group and CVC Cre
Slide 5: Transaction overview
Transaction overview Villeroy & Boch = Enterprise value of approx. €600mm represents an 8.1x EV/2022 adj. EBITDA multiple = Expected annual run-rate cost and revenue synergies of €35mm leading to an EV/EBITDA multiple of 5.5x post-synergies Consideration = Ideal Standard reported sales and adjusted
Slide 6: Joining the ranks of Europe's largest manufacturers of bathroom products
Joining the ranks of Europe’s largest manufacturers of bathroom products Revenues >€1bn <€500mm cersanit CATALANO DALLMER PORN D ouscuo.ux KERMI cHANSAS = HUPPE KEUCO KALDEWEI KLUDI KWC © saiibun MGEBERIT Roca yoourit VitrA Nop) Pain ver €1.7bn in combined revenues thereof €1.4bn in bathroom product
Slide 7: Percentage of sales 2022
x% Percentage of sales 2022 ~50% ~40% ~10%
Slide 8: The combined business is well positioned to capitalise on favourable global megatrends
The combined business is well positioned to capitalise on favourable global megatrends Renovations in Accelerated spending bathroom area in housing = Industry doubling = Aging of the population = Implementation of = Lack of living space due to worldwide over medium = Trend towards single ongoing tec
Slide 9: Agenda
} a Agenda 1. Key transaction highlights 2. Combination of highly complementary businesses == 3- Value creation and financial considerations
Slide 10: Combination of highly complementary businesses
Combination of highly complementary businesses Combined business to strengthen presence across Europe and MENA Ideal Standard enhances Villeroy & Boch’s presence in the highly complementary fittings business ©) Ideal Standard Excellent combination of V & Bs premium offering for residential and Ideal
Slide 11: Complementary regional presence
Villeroy & Boch and Ideal Standard —= benefit from complementary regional presence ae Complementary regional footprint! BEBE Both Both companies are already active in Central HEB Villeroy & Boch E rope ME Ideal Standard P Villeroy & Boch is also strongly anchored in Northern Europe Ideal Standard ha
Slide 12: Complementary regional presence: revenues 2022
Villeroy & Boch and Ideal Standard benefit from complementary regional presence Complementary regional footprint! Revenues 2022 (€ mm) Combined Revenues (€ mm) BEER Both ny i 33 HB Villeroy & Boch x aa _ ME Ideal Standard @® decsendas I 176 A's Villeroy «Boch J ~ @® ideal Standarc 91 ~€ ‘Excl. UB Di
Slide 13: Combined business to strengthen presence across Europe and MENA
1) Combined business to strengthen presence across Europe and MENA Complementary regional footprint! Revenues 2022 (€ mm) Combined Revenues (€ mm) BREE Both HEB Villeroy & Boch 19 ME Ideal Standard S . @ Source: Company information Note: ' Excluding Dining & Lifestyle division and €3m of transitiona
Slide 14: Sales split percentages
1% 2% 5% 5% 13% 10% 12% 11% 48% 38% 24% 56% 8% 65%
Slide 15: Public Washrooms & Workspaces
Public Washrooms & Workspaces
Slide 16: Combination of traditional and strong brands
Combination of traditional and strong brands, highly recognized for 4) product quality and design, customer focus and innovation ©) Ideal Standard * Global recognition of Villeroy & Boch brand * Highly recognized brands in UK, Central * Excellent position in bathroom ceramics and Europe and MENA fur
Slide 17: Agenda
} a Agenda 1. Key transaction highlights 2. Combination of highly complementary businesses == >- Value creation and financial considerations
Slide 18: Potential cost and growth run-rate synergies of at least €35mm identified
Potential cost and growth run-rate synergies of at least €35mm identified e@5 RRA Growth synergies Al Operational improvement Cross-selling of a combined product portfolio via the expansion of Villeroy & Boch fittings and Ideal Standard furniture Improved overall position in the project business thr
Slide 19: Run-rate Synergies Pro-forma
35 109 ◼ 74 ◼ 2022A Run-rate 2022 Synergies Pro-forma ◼ ◼
Slide 20: Key take-aways
Key take-aways = The combination of Villeroy & Boch and Ideal Standard creates a business with ~€1.4bn sales, joining the ranks of Europe's largest manufacturers of bathroom products = The excellent geographic and product complementarity with a strong fittings business forms the basis for an improve
Slide 21: Forward-looking statements disclaimer
his presentation as well as comments and explanations in this context includes forward-looking statements on the business development of the Villeroy & Boch Group. These statements are based on assumptions relating to the development of the economic, political and legal environment in individual cou
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