Geberit : Media release first information on 2022

MEDIA RELEASE

Ad hoc announcement pursuant to Art. 53 LR

First information on 2022

Currency-adjusted sales growth despite record highs of previous year

Geberit AG, Rapperswil-Jona, 19 January 2023

Taking into account the records set in the previous year, the Geberit Group posted good currency-adjusted net sales growth of 4.8% in a demanding environment. Net sales in Swiss francs decreased by 2.0% to CHF 3,392 million. For 2022 as a whole, Management expects an EBITDA margin of around 27%. The financial statements and annual report for 2022 will be released on 8 March 2023.

Net sales 2022

In 2022, net sales for the Geberit Group decreased by 2.0% to CHF 3,392 million. This slight decrease was due to negative currency effects of CHF 234 million. Local currencies saw growth of 4.8%. This growth was driven by strong sales price increases of around 9% and continued strong volume growth in the first half of the year. Volumes reached a new record level in the first half of the year due to the build-up of inventories at wholesalers. In the second half of the year, volumes declined sharply. This was caused by the anticipated reduction in wholesale inventories due to the extraordinary price increases, and also by the end of the COVID-19 induced home improvement trend from the previous year. However, the successful launches of new products and strong growth in emerging markets outside of Europe had a positive effect on volume growth. When compared with 2019 - and thus with net sales before the COVID-19 pandemic - strong growth after currency adjustments of 22% was seen across all regions.

Net sales 4th quarter 2022

Net sales in the fourth quarter reached CHF 667 million, which is equivalent to a decline of 13.6% compared to the same quarter in the previous year. After currency adjustments, the decrease came to 7.2%. These figures were positively impacted by price increases of around 13%. In contrast, volumes decreased as a result of further reductions in the high inventories at wholesalers and the exceptionally strong quarter in the previous year. In some European countries, a shift in demand from sanitary to heating solutions due to the energy crisis was also observed.

Net sales by markets and product areas

Despite a strong equivalent period in the previous year, the European markets recorded positive growth rates in all countries and regions in 2022. As a whole, these markets grew by +4.3% after currency adjustments. Double-digit growth was posted in the United Kingdom/Ireland (+13.8%), Italy (+13.5%) and the Iberian Peninsula (+10.1%). Growth rates were also experienced in Eastern Europe (+6.5%), the Nordic Countries (+5.1%), Switzerland and France (both +4.1%), the Benelux Countries (+3.7%), Austria (+3.3%) and Germany (+0.8%). The Middle East/Africa region continued to grow very strongly at +21.4%. Growth was also achieved in America (+2.8%) as well as in the Far East/Pacific region (+6.5%) which was negatively affected by lockdowns and the slowdown of building construction activity in China.

In the product areas, Piping Systems saw double-digit growth of +10.8% after currency adjustments due to larger price increases and the successful launch of the new FlowFit piping system. Installation and Flushing Systems grew by +2.0%, although they were significantly affected by the reduction in inventories at wholesalers in the second half of the year. Bathroom Systems saw an increase in net

MEDIA RELEASE

sales of +2.3% due to the strong base effect from the previous year and comparatively lower price increases.

Expectations for the operating margin for 2022 as a whole

Pressure on margins in 2022 resulted primarily from massively increased raw material and energy prices. Currency-adjusted prices for raw materials rose by +19%, and energy prices even saw an unprecedented doubling. Due to the multi-level distribution channel seen in the sanitary industry, adjustments to the sales price can only be implemented with a delay, meaning it was not yet possible to fully compensate the higher raw material and energy prices in 2022 as a whole. This has a negative impact on the margin: accordingly, an operating cashflow margin (EBITDA margin) of around 27% is expected for 2022.

Management is convinced that it can continue to achieve its medium-term targets of average annual net sales growth in local currencies of 4% to 6% and an average EBITDA margin of 28% to 30%.

The complete financial statements and annual report for 2022 will be released at the analyst and media conference in Zurich on 8 March 2023.

Please visit our website www.geberit.com for additional information.

For further information, please contact:
Geberit AG
Schachenstrasse 77, CH-8645 Jona
Christian Buhl, CEO	Tel. [phone]
Tobias Knechtle, CFO	Tel. [phone]
Roman Sidler, Corporate Communications & IR	Tel. [phone]

About Geberit

The globally operating Geberit Group is a European leader in the field of sanitary products. Geberit operates with a strong local presence in most European countries, providing unique added value when it comes to sanitary technology and bathroom ceramics. The production network encompasses 26 production facilities, of which 4 are located overseas. The Group is headquartered in Rapperswil -Jona, Switzerland. With around 12,000 employees in approximately 50 countries, Geberit generated net sales of CHF 3.4 billion in 2022. The Geberit shares are listed on the SIX Swiss Exchange and have been included in the SMI (Swiss Market Index) since 2012.

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