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					PRESS RELEASE


GROHE grows at double-digit rates and relies on
“Made in Germany”


DÜSSELDORF, July 5, 2012. German quality and German
engineering enjoy an excellent reputation throughout the world.
They are among the most important success factors for German
companies operating on an international scale. Grohe AG,
Europe’s largest and the world’s leading supplier of single-brand
sanitary fittings, relies on innovation and quality “made in
Germany” at all its worldwide locations – and quite successfully
so. Following on from the new sales and earnings records marked
in 2011, this successful performance continues in 2012.


2011 a successful year for the GROHE Group


Since July 2011, GROHE has held a majority share in Joyou AG
through Joyou Grohe Holding AG, a joint venture in which GROHE
holds 50.1 percent. In the financial year 2011, the GROHE Group
(GROHE, Joyou) increased its consolidated sales revenues by 19
percent on the previous year to EUR 1,165 million. Even excluding
Joyou, GROHE generated record sales of EUR 1,020 million in
2011, compared to EUR 980 million in the previous year.


In Germany, Group sales revenues increased by 11 percent. The
strongest growth was achieved in the Asian market. The Group’s
adjusted EBITDA rose by approx. 16 percent to EUR 232 million in
the past financial year.


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While the market as a whole was flat, the company boosted its
consolidated sales revenues by 29 percent to EUR 345 million in
the first three months of 2012. EBITDA amounted to EUR 69
million, while the sales margin again reached 20 percent.


Financial flexibility managed professionally and pro-actively


Thanks to professional cash management, GROHE has
consistently improved the days sales outstanding and the days
payables outstanding. This has helped to create a comfortable
liquidity position which allows to respond flexibly to market
requirements. This year, GROHE has again pro-actively increased
its financial flexibility and successfully placed a secured EUR 375
million bond maturing in May 2017, with institutional investors. The
funds were used to fully redeem the EUR 300 million bond issued
in 2007, which will mature in 2014, and to redeem EUR 75 million
of the EUR 335 million bond issued in 2004, which will also
become due in 2014. With this refinancing, GROHE has
successfully expanded its debt maturity profile.


“We have a healthy balance sheet structure with an equity ratio of
over 50 percent and can rightfully say that we are excellently
positioned,” said David J. Haines, CEO of Grohe AG. “Our
sustainable growth strategy provides for further market share
gains and a stable financial development.”




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First anniversary of joint venture with Joyou


The first year of their joint venture was a great success for
GROHE and Joyou and has redefined the strategic importance of
GROHE in the water technology market. GROHE is able to
expand its market leadership in Asia and to increase its growth
opportunities thanks to improved access to the Chinese market.


The GROHE portfolio is characterised by a high percentage of
innovations and young products. This strategy is paying off, as
products that are younger than five years account for 52 percent of
the company’s revenues. Accordingly, research and development
play an important role and are constantly pushed ahead.
Moreover, the products’ time to market has been reduced
significantly, allowing GROHE to always launch the latest
technologies and set new trends.


Responsibilities of the German plants based on product
categories


GROHE has customers in over 130 countries and a global
production network comprising six plants. About 60 percent of the
finished products are made at the German plants. At the beginning
of the year, the plants were placed under central management to
ensure better coordination of the production activities. Moreover,
the responsibilities of the plants are now based on product
categories instead of technologies. This will facilitate both process
management and communication with the relevant interfaces.
Moreover, the capacity utilisation of the plants will be increased



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and synergies be improved. All told, this will help secure the
German plants in the long term.


GROHE innovations “made in Germany”


Germany sets the quality standards for all GROHE plants in the
international production network. It is the German plants which
provide stimulation and drive innovations. Germany lays the basis
for the GROHE standards that apply throughout the world. All
innovation processes are launched and coordinated here; all
products are developed in Germany and designed by the GROHE
Design Studio in Düsseldorf. Germany is home to the research
and development centre in Hemer and to the Lifetest lab in Lahr.
This is where all new products are tested in complex testing
procedures that go far beyond the relevant industrial standards.
The plants’ specialisation in product groups will also strengthen
their function as centres of competence in the global production
network. All this is underlined by the company’s new “Made in
Germany“ quality seal. The latter is designed to make it easier for
retailers, installers and consumers to understand the GROHE
quality and to appreciate the benefits of the company’s innovation
and production processes.


The key success factors include the high demands GROHE
makes on its products. Quality, design, technology and
sustainability are the core values of the brand. This is one of the
reasons why GROHE is an active member in the fight against
plagiarism. GROHE therefore cooperates closely with local and
customs authorities and has recently helped to seize and destroy



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thousands of counterfeited products in the United Arab Emirates
and China, among others.


New international brand campaign


This year has seen important innovations at GROHE not only in
manufacturing but also with regard to the brand strategy. A new
360 degrees campaign will provide inspiration and make people
curious to try and experience the innovative and unique products.
This is the first time in the history of the company that GROHE will
use TV advertising. The commercials will be shown not only on TV
but also on social networks, video portals such as YouTube, the
company’s own and its partners’ websites as well as on monitors
in retailers’ shop windows and showrooms. Berlin-based agency
dieckertschmidt has produced four commercials starring the Allure
Brilliant faucet line, the GROHE Rainshower® shower systems as
well as the GROHE Blue® and GROHE Red® kitchen systems.
Custom-composed for GROHE, the music ideally conveys the
emotions of the commercials.


The large-scale campaign will be flanked by print and online
advertisements as well as the redesigned GROHE website. While
the main focus is on the European core markets – Germany, the
Netherlands, France and Belgium – all elements will be used by
other GROHE countries in accordance with their local
requirements.


“Our campaign will make it even easier for people to relate to the
GROHE brand,“ said David J. Haines. “The idea behind it is that
every innovation started with an inspiration. This is also true of our

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products, which allow everybody to create the bathroom of their
dreams.”




About GROHE

The GROHE Group is spearheaded by Grohe Holding GmbH, Düsseldorf, and
comprises Grohe AG, Hemer, Joyou AG, Frankfurt, (fully consolidated since 1 July 2011)
and other majority shareholdings of GROHE in foreign markets.
Grohe AG is Europe’s largest and the world’s leading provider of sanitary fittings under
one brand. As a global brand for sanitary products and systems, GROHE sets standards
in quality, design, technology and sustainability, providing water to perfection.
With its headquarters in Hemer and Corporate Center in Düsseldorf, the GROHE Group
employed some 8,700 people on average worldwide in 2011 (including around 3,200 at
Joyou), of whom some 2,400 worked at GROHE in Germany. In 2011, the company’s
kitchen and bathroom fittings and showers, automatic fittings for the commercial and
contract sectors, and installation and flushing systems generated consolidated sales of
€1,165 million.
GROHE has six production plants, of which three are located outside Germany, namely
in Portugal, Thailand and Canada. The company currently generates 84 percent of its
sales outside Germany.


GROHE
Feldmühleplatz 15  40545 Düsseldorf  Phone: +49.(0)211/9130-3000  www.grohe.de

Media contact: HERING SCHUPPENER
Unternehmensberatung für Kommunikation GmbH  Kreuzstr. 60  40210 Düsseldorf
Phone: +49.(0)211.430 79-66/-89  E-mail: grohe@heringschuppener.com




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