Notes to the Consolidated Financial Statements

1. Basic information and principles of the report

2. Changes in Group structure

3. Summary of significant accounting policies

4. Risk assessment and management

5. Management of capital

6. Marketable securities

7. Trade accounts receivable

8. Other current assets and current financial assets

9. Inventories

10. Property, plant and equipment

11. Other non-current assets and non-current financial assets

12. Goodwill and intangible assets

13. Short-term debt

14. Other current provisions and liabilities

15. Long-term debt

16. Derivative financial instruments

17. Retirement benefit plans

18. Participation plans

19. Deferred tax assets and liabilities

20. Other non-current provisions and liabilities

21. Contingencies

22. Capital stock and treasury shares

23. Earnings per share

24. Other operating expenses, net

25. Financial result, net

26. Income tax expenses

27. Research and development expenditures

28. Cashflow figures

29. Segment reporting

The Geberit Group consists of one single business unit, the purpose of which is to develop, produce and distribute sanitary products and systems for the residential and industrial construction industry. All products are distributed using the same distribution channel – wholesale – in general to plumbers, who resell the products to the end users. Products are produced by plants that specialize in particular production processes. As a general rule, one specific article is produced at only one location. Distribution is carried out by country or regional distribution subsidiaries, which sell to wholesalers. A distribution subsidiary is always responsible for the distribution of the whole range of products in its sales area. The main task of the distribution subsidiary is local market development, which comprises as a main focus the support of plumbers, sanitary planners and wholesalers. Research and development of the whole range of products is carried out centrally by Geberit International AG. All corporate tasks are also centralized at Geberit International AG.

Due to the unity and focus of the business, the top management (Group Executive Board) and the management structure of the Geberit Group are organized by function (overall management, products, sales, finance). The financial management of the Group by the Board of Directors and the Group Executive Board is based on sales by markets and product lines and on the consolidated income statements, balance sheets, and statements of cashflows.

Segment reporting is therefore prepared according to IFRS 8.31 et seq. (one single reportable segment) and the valuation is made according to the same principles as the consolidated financial statements. The geographical allocation of sales is based on the domicile of customers.

The information is as follows:

  2014 2013
  MCHF MCHF
Sales by product lines    
Installation Systems 878.6 830.5
Cisterns and Mechanisms 265.7 251.1
Faucets and Flushing Systems 122.9 120.6
Waste Fittings and Traps 97.1 95.4
Sanitary Systems 1,364.3 1,297.6
     
Building Drainage Systems 349.6 324.8
Supply Systems 690.5 669.2
Piping Systems 1,040.1 994.0
     
Total sales 2,404.4 2,291.6
Customer bonuses and cash discounts 315.3 291.7
Total revenue from sales 2,089.1 1,999.9
     
Operating cashflow (EBITDA) 657.1 592.8
Margin in % sales 27.3% 25.9%

  2014 2013
  MCHF MCHF
Sales by markets    
Germany 881.2 842.0
Switzerland 309.7 290.5
Italy 177.4 174.9
Other Europe 825.8 791.4
Other markets 210.3 192.8
Total sales 2,404.4 2,291.6
Customer bonuses and cash discounts 315.3 291.7
Total revenue from sales 2,089.1 1,999.9
     
Operating cashflow (EBITDA) 657.1 592.8
Margin in % sales 27.3% 25.9%

  2014 2013
  MCHF MCHF
Share of sales by customers    
Customers with more than 10% of sales: customer A 406.0 362.1
Total > 10% 406.0 362.1
     
Remaining customers with less than 10% of sales 1,998.4 1,929.5
Total sales 2,404.4 2,291.6
Customer bonuses and cash discounts 315.3 291.7
Total revenue from sales 2,089.1 1,999.9

30. Related party transactions

31. Foreign exchange rates

32. Subsequent events

33. Additional disclosures on financial instruments

34. Group companies as of December 31, 2014