Targets and strategy

Ambitious medium-term goals

Geberit has made the setting of standards in sanitary technology worldwide its goal and aims to entrench these standards in the long term by acting sustainably. This approach is to be reflected among other things in sales growth that outstrips the industry average. Basically, Geberit is aiming to achieve its sales targets while at the same time maintaining its industry leadership in terms of profitability and the ability to generate high cashflows. In the medium term, average currency-adjusted sales growth of 4 to 6% and an operating cashflow margin of between 23 and 25% should be achieved annually. These targets will be reassessed following the completion of the Sanitec acquisition. A communication in this regard will follow in due time.

Further growth through acquisitions has not been ruled out. However, any potential acquisition will have to satisfy strict strategic and financial criteria.

Medium-term contributions to growth will come from products already launched on the market, new product launches, the AquaClean business and from local product adaptations. Overall, around one-third of growth should result from products that have been launched in the past three years and from the AquaClean business.

In geographical terms, the core European markets generated around 70% of sales at an already high level of market penetration and – compared to the growth of the Group – slightly below-average growth rates. On the other hand, in the emerging markets inside and outside Europe, the great market potential and a lower market penetration should pave the way for above-average growth and market share gains.

A concerted internationalization strategy for the AquaClean business has been pursued since the beginning of 2009 with the objectives of establishing shower toilets as a product category in Europe and strengthening Geberit’s position as the market leader in this category.

In addition, further contributions to growth will be generated in the context of geographic expansion from products adapted to the specific local needs outside the core European markets.

in order to be prepared for the expected growth, Geberit also intends to invest on a normalized basis around CHF 100 million annually in property, plant and equipment in the coming years. However, major upcoming projects will see CHF 120 - 130 million invested in property, plant and equipment in 2015 and 2016. These statements are based on the current structures at Geberit; the impact of Sanitec’s integration is not taken into account in these figures.


In accordance with its vision, Geberit aims to achieve sustained improvement in the quality of people’s lives through innovative solutions in sanitary technology. Its proven, focused strategy for doing so is based on the four strategic pillars “Focus on sanitary technology”, “Commitment to innovation”, “Selective geographic expansion” and “Continuous optimization of business processes”. These are practiced daily by the highly motivated and qualified employees.

  • With regard to focusing on sanitary technology, Geberit centers on those business areas in the sanitary industry for which in-depth know-how and core competencies are available within the company. Essentially, these are sanitary and piping systems for the transport of water in buildings. Here, superior-quality, integrated, water-saving sanitary systems are offered.
  • Continuously optimizing and extending the product range is crucial for future success. Innovation strength is founded on basic research in areas such as hydraulics, statics, fire protection, hygiene and acoustics. The insights gained are systematically applied in the development of products and systems for the benefit of customers.
  • The accelerated penetration of markets such as France, the United Kingdom, the Nordic Countries, Eastern Europe and the Iberian Peninsula is an important factor for long-term success. Outside Europe, Geberit concentrates on the most promising markets. These include North America, China, Southeast Asia, Australia, the Gulf Region and India. With the exception of North America and Australia, the company mainly engages in project business in these regions. In this respect, the company always adheres strictly to the existing high standards in terms of quality and profitability.
  • A further strategic focus relates to the continuous optimization of business processes. This is intended to ensure a leading, competitive cost structure in the long term and is partly achieved through Group-wide projects and partly through employees identifying improvement potential in their day-to-day work, thus making a major contribution toward positive development.

Strategic success factors

The success of the Geberit Group is based on a series of success factors. The most important are:

  • a clear, long-term strategy
  • the focus on the sanitary industry
  • significant sustainable growth drivers (refer to graphic  Source of organic growth contribution)
  • an attractive competitive position
  • an innovative product range, developed in accordance with customer needs
  • a proven push-and-pull business model
  • a stable management structure
  • a lean, high-performance organization with optimized processes
  • a unique corporate culture

Value-oriented management

Value orientation aspects are considered in many areas of the company.

The remuneration model for Group management as a whole involves a remuneration portion that is dependent on the company’s performance and which is calculated on the basis of four equally weighted key figures – including the return on operating capital. In addition to the salary, there is an annual option plan for the Group Executive Board and other management members. Allotments under the option plan are also linked to a target figure for return on operating capital. Details can be found in the  Remuneration Report and in the  Corporate Governance section.

Investments in property, plant and equipment above a certain amount are approved only if strict criteria are met. In this context, it is mandatory that an investment return be achieved that exceeds the cost of capital plus a premium.

In the interests of value-oriented management, Group-relevant projects are tracked over the long term following project completion and the achievement of objectives is evaluated. To this end, a controlling report is discussed annually by the Group Executive Board.