Notes to the Financial Statements

2.1 Guarantees, assets pledged in favor of third parties

	31.12.2017	31.12.2016
	MCHF	MCHF
Guarantee notes, MEUR 500, 0.688%, due 30.03.2021	584.4	536.8
Guarantee Revolving Facility, due 06.11.2022	500.0	0.0
Guarantee Term Loan Facility, MEUR 0 (PY: MEUR 120), due 10.02.2018¹	0.0	128.8
Guarantee Revolving Facility, due 19.11.2019¹	0.0	300.0
Guarantee GRI Pensions	0.1	0.1
¹ early cancellation in 2017

The guarantees are limited to the distributable reserves of the company.

2.2 Significant investments

	2017 Ownership in %	2017 capital stock	2016 Ownership in %	2016 capital stock

Geberit Holding AG, Rapperswil-Jona	100	TCHF 39 350	100	TCHF 39 350
Geberit Reinsurance Ltd., Guernsey	100	TEUR 2	100	TEUR 2

The investments are stated separately at the respective acquisition costs, less any adjustments required. The indirect investments are shown in the Notes to the Consolidated Financial Statements in the Note 33.

2.3 Share capital

The share capital of Geberit AG consists of 37,041,427 ordinary shares with a par value of CHF 0.10 each.

	2017	2016
Number of shares issued	pcs.	pcs.
January 1	37,041,427	37,798,427
Capital reduction as at June 2016	0	-757,000
December 31	37,041,427	37,041,427

2.4 Capital contribution reserves

From the total of MCHF 25.7 shown as at 31.12.2017 the amount of MCHF 4.2 was confirmed by the Swiss tax authorities and is therefore available for withholding tax free distribution.

2.5 Treasury shares

Treasury shares held by Geberit AG or by companies in which Geberit AG holds a majority interest:

	Number of registered shares	High	Average	Low
		in CHF	in CHF	in CHF
Balance at December 31, 2016	239,869
Purchases share buyback program 2017 - 2020	205,250	484.20	447.08	423.65
Other Purchases	35,000	439.47	434.85	429.40
Sales	-88,479	483.59	438.46	401.50
Balance at December 31, 2017	391,640
Number of treasury shares held by Geberit AG	205,250

The Board of Directors of Geberit AG decided in March 2017 to initiate a share buyback program. Over a maximum period of three years, shares amounting to a total of a maximum of CHF 450 million will be repurchased, less withholding tax. As at December 31, 2017, in total 205’250 shares equal to MCHF 91.8 were repurchased under the program.

The legal reserves for treasury shares were recorded at cost.

2.6 Bonds

Geberit has the following bonds outstanding:

a bond of MCHF 150 with a term of four years and a coupon of 0.05%, due 17.04.2019
a bond of MCHF 150 with a term of eight years and a coupon of 0.3%, due 17.04.2023

2.7 Shareholdings of members of the board of directors and of the group executive board

As of the end of 2017 and 2016, members of the Board of Directors held the following shares in the company:

	A. Baehny Chairman	H. Reuter Vice Chairman	F. Ehrat	T. Hübner	J. Tang-Jensen	E. Zehnder-Lai	Total
2017
Shareholdings Board of Directors
Shares	56,812	8,318	2,281	858	2,511	0	70,780
Options	55,231	0	0	0	0	0	55,231
Share of voting rights	0.15%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	0.0%	0.19%

	A. Baehny Chairman	H. Reuter Vice Chairman	R. Aalstad	F. Ehrat	T. Hübner	J. Tang-Jensen	Total
2016
Shareholdings Board of Directors
Shares	56,219	7,649	0	1,776	394	2,131	68,169
Options	55,231	0	0	0	0	0	55,231
Share of voting rights	0.15%	< 0.1%	0.0%	< 0.1%	< 0.1%	< 0.1%	0.18%

As of December 31, 2017, there were no outstanding loans or credits between the company and members of the Board of Directors

As of the end of 2017 and 2016, the Group Executive Board held the following shares in the company:

	Maturity	Average exercise price in CHF	C. Buhl CEO	R. Iff CFO	M. Baumüller	M. Reinhard	E. Renfordt-Sasse	K. Spachmann	R. van Triest	Total
Percentage potential share of voting rights options			0.15%	0.11%	< 0.1%	0.10%	< 0.1%	< 0,1%	< 0,1%	0.57%
¹ Purchase ratio 1 share for 1 option
2017
Shareholdings Group Executive Board
Shares			6,212	32,840	2,850	2,500	2,452	12,407	200	59,461
Percentage voting rights shares			< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	0.16%

Call options¹
End of vesting period:
Lapsed	2018-2023	306.01	7,474	9,172	2,922	3,783	4,779	3,236	10	31,376
2018	2021-2024	357.20	5,745	7,091	784	7,261	2,631	6,140	50	29,702
2019	2022-2026	382.28	11,302	7,484	697	7,989	4,074	6,647	2,596	40,789
2020	2023-2027	398.85	13,053	7,427	1,926	7,895	3,664	6,632	4,602	45,199
2021	2024-2027	398.85	12,776	7,299	1,878	7,770	3,567	6,554	4,592	44,436
2022	2027	435.95	6,270	3,176	1,504	3,314	1,504	2,926	2,006	20,700
Total options			56,620	41,649	9,711	38,012	20,219	32,135	13,856	212,202

	Maturity	Average exercise price in CHF	C. Buhl CEO	R. Iff CFO	M. Baumüller	M. Reinhard	E. Renfordt-Sasse	K. Spachmann	R. van Triest	Total
¹ Purchase ratio 1 share for 1 option
2016
Shareholdings Group Executive Board
Shares			4,588	31,812	1,343	2,500	2,336	8,691	40	51,310
Percentage voting rights shares			< 0.1%	< 0.1%	< 0,1%	< 0.1%	< 0.1%	< 0.1%	< 0,1%	0.14%

Call options¹
End of vesting period:
Lapsed	2017-2022	242.80	1,633	0	3,046	0	1,990	7,314	0	13,983
2017	2020-2023	306.01	5,841	9,172	995	9,308	2,789	8,013	10	36,128
2018	2021-2023	330.95	5,339	6,834	687	7,011	2,477	6,140	10	28,498
2019	2022-2026	355.45	10,896	7,227	600	7,739	3,920	6,647	2,556	39,585
2020	2023-2026	361.75	6,377	3,994	325	4,331	2,006	3,706	2,556	23,295
2021	2026	361.75	6,100	3,866	277	4,206	1,909	3,628	2,546	22,532
Total options			36,186	31,093	5,930	32,595	15,091	35,448	7,678	164,021
Percentage potential share of voting rights options			< 0,1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	0.44%

As of December 31, 2017, there were no outstanding loans or credits between the company and members of the Group Executive Board

2.8 Significant shareholders

According to the information available to the Board of Directors, the following shareholders have attained or exceeded the threshold of 3% of the share capital of Geberit AG:

	31.12.2017	31.12.2016
Black Rock, New York (notification dated: 08.07.2017)	4.99%	4.94%
Capital Group Companies, Inc., Los Angeles (notification dated: 25.11.2017)	< 3.00%	4.84%

2.9 Employees

In Geberit AG no employees are employed.

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