2. Organizational profile

Geberit Group.

Geberit offers customers high-quality system solutions for applications in private residential construction and public buildings. The systems are used in both renovation projects and new buildings.

The product area Sanitary Systems comprises all sanitary technology found in buildings (with the exception of pipes) and is divided into four product lines: Installation Systems, Cisterns and Mechanisms, Faucets and Flushing Systems and Waste Fittings and Traps. The product area Piping Systems comprises all piping technology found in buildings for drinking water, heating, gas and other media and is divided into the product lines Building Drainage Systems and Supply Systems. The product area Sanitary Ceramics comprises nearly all relevant equipment in the bathroom and is divided into the product lines Bathroom Ceramics and Ceramics Complementary Products.

For further information on the product range, see www.geberit.com > Products > Product range.

For 2016 net sales by product area and product line, see Business Report > Business and financial review > Financial Year 2016 > Net sales.

The Geberit Group has its headquarters in Rapperswil-Jona (CH).

Geberit has its own representatives in 49 countries. The products are sold in over 122 countries throughout the world. Following the integration of the former Sanitec Group, the company has 33 specialised production companies in 14 different countries close to the most important sales markets and a central logistics centre in Pfullendorf (DE).

For a list of the countries in which Geberit operates, see Financial Report > Consolidated financial statements Geberit Group > Notes > Note 33.

Geberit AG, the parent company of the Geberit Group, is a stock corporation (AG) under Swiss law.

In terms of market cultivation, Geberit relies on a three-stage distribution channel. Numerous products are distributed via the wholesale trade. Dealerships then sell them to plumbers and present them at exhibitions where end customers can gain information. At the same time, Geberit provides plumbers and sanitary planners with intensive support through training and advice. This leads to increased demand for Geberit products from wholesalers.

With the integration of the ceramics business in its tried-and-tested sales structures, Geberit substantially strengthened its presence in many markets. Since the beginning of 2016, each market has been serviced by one local sales company only. The more than 800 advisors deployed throughout Europe no longer focus on specific product areas, but rather on different customer segments, such as the wholesale trade, plumbers and planners, architects and exhibitions. This means that sales representatives must have very broad product knowledge in order to provide comprehensive support to their customers.

For net sales by markets and regions as well as by product areas and product lines, see Business Report > Business and financial review > Financial Year 2016 > Net sales.

The Geberit Group’s market capitalisation reached CHF 15,429 million as of the end of 2016 (previous year CHF 12,859 million). For the consolidated balance sheet with details of current assets, non-current assets, equity and liabilities, see Financial Report > Consolidated financial statements Geberit Group > Balance sheet. In 2016, net sales amounted to CHF 2,809.0 million (previous year CHF 2,593.7 million).

At the end of 2016, the Group had 11,592 employees (previous year 12,126 employees). For the number of business sites, see G4-6.

At the end of 2016, the Geberit Group employed 11,592 staff worldwide, which is 534 employees or 4.4% less than in the previous year. This is mainly because fewer people are employed in the ceramic plants due to efficiency-enhancing measures and synergies.

For key figures on the workforce by employment type, employment contract, region and gender, see Key figures sustainability > Employees and society.

There are currently 9,014 employees (corresponding to 78% of the workforce) who are covered by collective agreements (e.g. collective labour agreements, wage agreements). In Germany, Austria, Switzerland, France, Italy, Ukraine, Finland and Sweden, over 90% of employees are subject to a collective labour or wage agreement. While collective agreements with employees have been in place in China since 2016, there are still none in the USA.

See chapter Suppliers.

There was a significant change in 2015 due to the acquisition of the Sanitec Group. The divestment of the Koralle business was implemented in the reporting year as of the end of June 2016. See Financial Report > Consolidated financial statements Geberit Group > Notes > Note 2.

The precautionary approach plays an important role for Geberit as a production company. This approach is described in the Geberit Code of Conduct.

The Geberit Group has a Group certificate in accordance with ISO 9001 (quality), ISO 14001 (environment) and OHSAS 18001 (occupational health and safety) that is valid until the end of 2018. All 17 Geberit production plants and 13 of the 16 former Sanitec plants are certified to ISO 14001. By the end of 2018, all new plants will be integrated into the Geberit management system and certified according to ISO 9001 and 14001, as well as OHSAS 18001. Five plants have already been certified according to ISO 50001. Furthermore, all Geberit companies implemented the European Energy Efficiency Directive 2012/27/EU in 2015.

In the environmental area, the company remains committed to its ambitious goals of improving the relative environmental impact and relative CO₂ emissions by 5% annually. In addition, a long-term CO₂ target was developed in 2016 that is compatible with the two-degree target set out in the Paris Agreement (science-based). It comprises a reduction of absolute CO₂ emissions (Scopes 1 and 2) by 6% between 2015 and 2021 to under 240,000 tonnes (based on organic growth).

In the area of occupational safety, the aim is to halve the frequency and severity of accidents by 2025 based on the reference year 2015.

The Geberit Production System (GPS 2.0) was implemented at all new plants in the reporting year. Best-practice standards in production will be uniformly implemented using methods such as SMED (Single Minute Exchange of Dies), TPM (Total Production Maintenance), 5S (Workplace Organisation Methodology) and CIP (Continuous Improvement Process).

An extensive system for the control and management of all risks involved in business activities is in place throughout the Group. For further information, see Business Report > Corporate Governance > Board of Directors > Information and control instruments vis-à-vis the Group Executive Board.

Geberit has been a formal member of the UN Global Compact since October 2008 and was a founding member of the local Swiss network in 2011. The company has been a member of the Transparency International organisation since June 2000 and supports its objectives for combating corruption. Since 2007, Geberit has voluntarily applied the comprehensive guidelines of the Global Reporting Initiative (GRI) for sustainability reporting and has thereby made an active contribution towards ensuring transparency and comparability in this reporting.

Geberit has cooperated with the non-profit organisation Swiss Water Partnership since 2012. This platform seeks to bring together all those involved in the topic of water supply (from academic, economic as well as public and private spheres) to collectively address future challenges and promote international dialogue on water.

Geberit is involved in various associations and organisations that make a contribution toward sustainability. In addition, various Geberit companies are members of national associations on topics such as green building, environmentally friendly production, energy, waste management and employee protection. For major commitments, see www.geberit.com > Company > Sustainability > UN Global Compact and Memberships.