6-K 1 sanitec_6k-3.txt SANITEC INTERNATIONAL SA FORM 6-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 333-102846 For the month of April 2004 Sanitec International S.A. 19-21 boulevard Prince Henri L-1724 Luxembourg RC Luxembourg B 82 055 Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F Form 20-F |X| Form 40-F |_| Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes |_| No |X| Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes |_| No |X| Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes |_| No |X| SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Sanitec International S.A. (Registrant) By: /s/ Timo Lehto ------------------------- Name: Timo Lehto Title: Principal Financial Officer and Director 14 April 2004 FORWARD-LOOKING STATEMENTS This release includes forward-looking statements. All statements other than statements of historical fact included in this release, including, without limitation, those regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, and future developments in the markets where we participate or are seeking to participate, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "plan", "potential", "predict", "project", "should", or "will" or the negative of such terms or other comparable terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. These risks, uncertainties and other factors include, among other things, those listed under "Risk Factors" in our annual report on Form 20-F, filed with the SEC on June 24, 2003, as well as those included elsewhere in this release. Important factors that could cause our actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others: o our ability to service our existing indebtedness; o our ability to fund our future operations and capital needs through borrowing or otherwise; o our ability to implement successfully our business strategy, including our ability to integrate our recently acquired businesses, exploit cross-selling opportunities, pursue growth opportunities and restructure our production network, and our ability to realize financial benefits from cost-saving initiatives; o our expectations with respect to European economic and general industry conditions; o our ability to establish and maintain production and supply channels; o our ability to compete effectively in a highly competitive environment; and o our expectations about growth in demand for our products. We do not intend to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf, are expressly qualified in their entirety by cautionary statements contained throughout this report. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. PRESS RELEASE 14 April 2004 Published Wednesday 14 April 2004 at 14:45 CET SANITEC COMPLETES THE DIVESTMENT OF EVAC Sanitec Corporation has today successfully completed the divestment of its Evac Environmental Solutions business to the French Zodiac Group, as announced on 18 March 2004. The enterprise value of the transaction is EUR 60 million and some EUR 50 million of cash proceeds will be applied to repayment of Sanitec's senior debt. The divestment will allow Sanitec to focus on its core business as a leading European provider of bathroom solutions. For additional information, please contact: Sanitec Corporation Mr Timo Lehto, Senior Vice President & CFO, Sanitec Corporation Tel. +358 9 7095 402 Mobile +358 50 2756 e-mail timo.lehto@sanitec.com SANITEC GROUP IS A EUROPEAN MULTI-BRAND GROUP THAT DESIGNS, MANUFACTURES AND MARKETS BATHROOM CERAMICS AND BATH AND SHOWER PRODUCTS. IN 2002 SANITEC'S NET SALES AMOUNTED TO EUR 985.4 MILLION AND THE GROUP EMPLOYS AROUND 8,000 PEOPLE. THE COMPANY IS THE LARGEST OR SECOND LARGEST SUPPLIER IN ALL ITS MAIN MARKETS. MOST OF THE 30 PRODUCTION PLANTS ARE IN EUROPE WHEREAS THE SALES AND MARKETING NETWORK OPERATES WORLD-WIDE.

CONSOLIDATED STATEMENTS OF OPERATIONS, JANUARY - SEPTEMBER 2003 (see also page 12) (Amounts in millions of euro) POOL ACQUISITION NETHERLANDS B.V. SANITEC INTERNATIONAL S.A. (1) ------------- ----------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - January 1 - January 1 - January 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 ---------------------------------------------------------------------------------------------------------------------- NET SALES 251.5 508.6 745.5 985.4 Other operating income 0.9 3.6 4.5 7.5 Operating expenses: Cost of products sold - materials and consumables (77.9) (157.1) (235.4) (308.8) Personnel (78.8) (157.8) (226.0) (299.5) Outside services (24.0) (49.1) (71.6) (94.6) Depreciation and writedowns (11.1) (27.8) (38.8) (51.4) Amortization of goodwill (11.1) (22.3) (33.6) (44.1) Other operating expenses (37.2) (74.6) (108.0) (142.4) ---------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT 12.3 23.5 36.6 52.1 Other income (expenses): Equity in income (loss) of associated companies 0.1 0.2 0.2 0.5 Other income and expenses, net (21.0) (54.5) (77.0) (100.4) ---------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTERESTS (8.6) (30.9) (40.2) (47.8) Income taxes (5.6) (13.6) (18.5) (26.4) Minority interests (0.2) (0.3) (0.5) (0.6) ---------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) (14.4) (44.8) (59.2) (74.8) ====================================================================================================================== EBITDA 34.5 73.6 109.0 147.6

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. (1) -------------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from January 1 - January 1 - January 1 - March 31, June 30, September 30, 2003 2003 2003 ----------------------------------------------------------------------------------------------------------- NET SALES 241.9 487.1 713.8 Other operating income 1.6 2.8 4.1 Operating expenses: Cost of products sold - materials and consumables (73.7) (150.9) (225.6) Personnel (75.6) (150.4) (216.3) Outside services (22.0) (42.6) (62.4) Depreciation and writedowns (11.4) (22.2) (32.9) Amortization of goodwill (11.0) (21.8) (32.5) Other operating expenses (34.7) (73.3) (107.3) ----------------------------------------------------------------------------------------------------------- OPERATING PROFIT 15.1 28.7 40.9 Other income (expenses): Equity in income (loss) of associated companies 0.5 2.0 3.7 Other income and expenses, net (24.3) (46.1) (69.6) ----------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTERESTS (8.7) (15.4) (25.0) Income taxes (5.7) (12.4) (18.7) Minority interests (0.2) (0.4) (0.6) ----------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) (14.6) (28.2) (44.3) =========================================================================================================== EBITDA 37.5 72.7 106.3

CONSOLIDATED BALANCE SHEETS, ASSETS POOL ACQUISITION (Amounts in millions of euro) NETHERLANDS B.V. SANITEC INTERNATIONAL S.A. (1) ----------------- ---------------------------------------------------- (unaudited) (unaudited) (unaudited) At March 31, At June 30, At September 30, At December 31, 2002 2002 2002 2002 ------------------------------------------------------------------------------------------------------------------------- Fixed assets and other long-term investments Intangible assets, net: Goodwill 760.2 751.7 746.3 721.5 Other intangible assets 30.5 43.1 44.6 45.1 ------------------------------------------------------------------------------------------------------------------------- 790.7 794.8 790.9 766.6 Property, plant and equipment, net: Land 52.4 54.6 55.0 73.1 Buildings 95.1 90.8 90.5 111.0 Machinery and equipment 102.8 96.9 94.9 100.9 Other tangible assets 6.7 6.5 6.2 6.2 Advances paid and construction in progress 16.3 18.7 20.3 11.2 ------------------------------------------------------------------------------------------------------------------------- 273.4 267.5 266.8 302.4 Long-term investments and receivables: Investment securities 1.0 1.1 1.1 0.8 Other receivables 10.0 9.5 9.6 9.2 ------------------------------------------------------------------------------------------------------------------------- 11.0 10.6 10.7 10.0 Investments in associated companies 40.1 35.2 35.6 33.8 ------------------------------------------------------------------------------------------------------------------------- TOTAL FIXED ASSETS AND OTHER LONG-TERM INVESTMENTS 1,115.2 1,108.1 1,104.0 1,112.8 Current assets: Inventories: Finished goods 85.2 83.3 76.9 78.2 Work in progress 17.9 19.0 18.9 21.9 Raw material 60.0 59.3 58.4 56.5 ------------------------------------------------------------------------------------------------------------------------- 163.1 161.6 154.3 156.6 Trade accounts receivable 182.5 189.2 176.7 154.5 Loans receivable 6.4 7.1 6.4 6.0 Prepaid expenses and accrued income 40.4 29.9 26.7 22.1 Deferred tax assets 5.8 4.9 4.7 - Other current assets 13.9 13.7 13.3 14.4 Cash and cash equivalents 51.6 29.3 54.0 34.6 ------------------------------------------------------------------------------------------------------------------------- 300.7 274.1 281.9 231.6 TOTAL CURRENT ASSETS 463.9 435.7 436.2 388.2 TOTAL ASSETS 1,579.1 1,543.8 1,540.2 1,501.0 =========================================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. (1) ----------------------------------------------- (unaudited) (unaudited) (unaudited) At March 31, At June 30, At September 30, 2003 2003 2003 ----------------------------------------------------------------------------------------------------- Fixed assets and other long-term investments Intangible assets, net: Goodwill 707.7 696.6 685.5 Other intangible assets 43.5 43.2 41.4 ----------------------------------------------------------------------------------------------------- 751.2 739.8 726.9 Property, plant and equipment, net: Land 72.4 71.1 71.1 Buildings 106.8 104.2 101.7 Machinery and equipment 94.4 94.3 87.4 Other tangible assets 5.9 5.8 5.6 Advances paid and construction in progress 12.4 11.9 21.8 ----------------------------------------------------------------------------------------------------- 291.9 287.3 287.6 Long-term investments and receivables: Investment securities 0.5 0.4 0.4 Other receivables 9.2 9.6 9.9 ----------------------------------------------------------------------------------------------------- 9.7 10.0 10.3 Investments in associated companies 33.0 33.0 34.1 ----------------------------------------------------------------------------------------------------- TOTAL FIXED ASSETS AND OTHER LONG-TERM INVESTMENTS 1,085.8 1,070.1 1,058.9 Current assets: Inventories: Finished goods 80.7 83.3 79.3 Work in progress 23.1 23.1 22.1 Raw material 58.0 57.8 55.9 ----------------------------------------------------------------------------------------------------- 161.8 164.2 157.3 Trade accounts receivable 179.5 187.6 178.8 Loans receivable 5.5 5.1 5.3 Prepaid expenses and accrued income 20.0 21.7 18.6 Deferred tax assets - - - Other current assets 23.1 12.1 14.4 Cash and cash equivalents 14.1 15.3 31.3 ----------------------------------------------------------------------------------------------------- 242.2 241.8 248.4 TOTAL CURRENT ASSETS 404.0 406.0 405.7 TOTAL ASSETS 1,489.8 1,476.1 1,464.6 =====================================================================================================

CONSOLIDATED BALANCE SHEETS, SHAREHOLDERS' EQUITY AND TOTAL LIABILITIES (Amounts in millions of euro) POOL ACQUISITION NETHERLANDS SANITEC INTERNATIONAL S.A. (1) B.V. -------------- --------------------------------------------------- (unaudited) (unaudited) (unaudited) At March 31, At June 30, At September 30, At December 31, 2002 2002 2002 2002 ------------------------------------------------------------------------------------------------------------------ Shareholders' equity: Share capital 30.0 10.0 10.0 10.0 Share premium funds 120.0 140.1 140.1 140.1 Other reserves (0.3) (8.4) (6.5) (9.6) Retained earnings (deficit) (17.3) (23.9) (24.6) (25.0) Net income (loss) for the period (14.4) (44.8) (59.2) (74.8) ------------------------------------------------------------------------------------------------------------------ TOTAL SHAREHOLDERS' EQUITY 118.0 73.0 59.7 40.7 Minority interests 4.0 2.9 3.1 3.2 Provisions 97.9 98.8 96.0 94.1 Non-current liabilities: Long term debt, excluding current installments 734.7 732.9 733.2 719.6 Shareholder loans and subordinated loans 372.2 378.7 378.7 405.0 Deferred tax liabilities - - - 7.9 ------------------------------------------------------------------------------------------------------------------ 1,106.9 1,111.5 1,111.9 1,132.5 Current liabilities: Current debt 19.5 13.0 3.6 4.9 Current installments of long-term debt 15.4 22.2 23.7 26.1 Trade accounts payable 86.9 93.0 83.9 92.5 Accrued expenses and deferred income 111.7 115.2 143.2 94.6 Other current liabilities 18.8 14.2 15.1 12.4 ------------------------------------------------------------------------------------------------------------------ 252.3 257.6 269.5 230.5 TOTAL LIABILITIES 1,359.2 1,369.2 1,381.4 1,363.0 SHAREHOLDERS' EQUITY AND TOTAL LIABILITIES 1,579.1 1,543.8 1,540.2 1,501.0 ==================================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. (1) --------------------------------------------------- (unaudited) (unaudited) (unaudited) At March 31, At June 30, At September 30, 2003 2003 2003 ------------------------------------------------------------------------------------------------- Shareholders' equity: Share capital 10.0 10.0 10.0 Share premium funds 140.1 140.1 140.1 Other reserves (15.1) (15.7) (16.5) Retained earnings (deficit) (102.6) (104.6) (104.2) Net income (loss) for the period (14.6) (28.2) (44.3) ------------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 17.8 1.6 (14.9) Minority interests 3.3 3.5 3.1 Provisions 92.3 95.9 94.4 Non-current liabilities: Long term debt, excluding current installments 719.5 700.0 700.0 Shareholder loans and subordinated loans 405.0 410.0 410.0 Deferred tax liabilities 9.8 10.2 10.6 ------------------------------------------------------------------------------------------------- 1,134.3 1,120.2 1,120.6 Current liabilities: Current debt 3.3 6.4 2.9 Current installments of long-term debt 25.8 31.6 31.1 Trade accounts payable 86.9 89.7 75.8 Accrued expenses and deferred income 98.0 96.7 113.9 Other current liabilities 28.1 30.5 37.7 ------------------------------------------------------------------------------------------------- 242.1 254.9 261.4 TOTAL LIABILITIES 1,376.4 1,375.1 1,382.0 SHAREHOLDERS' EQUITY AND TOTAL LIABILITIES 1,489.8 1,476.1 1,464.6 =================================================================================================

CONSOLIDATED STATEMENTS OF CASH FLOWS, JANUARY - SEPTEMBER 2003 POOL ACQUISITION NETHERLANDS (Amounts in millions of euro) B.V. SANITEC INTERNATIONAL S.A. -------------- ------------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - January 1 - January 1 - January 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 ---------------------------------------------------------------------------------------------------------------------- Cash flow from operating activities: Operating profit 12.3 23.5 36.6 52.1 Intangibles, property, plant and equipment, net Depreciation, amortization and writedown 22.1 50.1 72.4 95.5 Selling profit / (loss) of fixed assets 0.0 (0.2) (0.3) 0.5 ---------------------------------------------------------------------------------------------------------------------- Cash flow before working capital changes 34.5 73.4 108.7 148.1 Changes in working capital Current assets, non-interest bearing, (increase) / decrease (15.2) (27.7) (11.9) 1.0 Inventories, (increase) / decrease (0.9) (2.8) 4.9 1.5 Current liabilities, non-interest bearing, increase/ (decrease) (16.7) (10.2) (25.6) (36.0) ---------------------------------------------------------------------------------------------------------------------- (32.7) (40.6) (32.6) (33.5) Cash flow from operating activities before financial items and taxes 1.7 32.8 76.1 114.6 Interest expenses paid (11.3) (30.5) (36.0) (66.5) Interest income received 1.6 2.6 3.6 4.3 Other financial income received and paid 3.2 5.8 9.7 1.4 Income taxes paid (6.9) (8.7) (11.1) (14.7) ---------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM OPERATING ACTIVITIES (A) (11.7) 2.0 42.3 39.1 ====================================================================================================================== Cash flow from investing activities: Investments in tangible and intangible assets (7.7) (39.7) (49.6) (63.7) (1) Proceeds from sale of tangible and intangible assets 2.3 3.2 3.3 5.4 ---------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM INVESTING ACTIVITIES (B) (5.4) (36.5) (46.3) (58.3) ======================================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. ----------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from January 1 - January 1 - January 1 - March 31, June 30, September 30, 2003 2003 2003 -------------------------------------------------------------------------------------------------- Cash flow from operating activities: Operating profit 15.1 28.7 40.9 Intangibles, property, plant and equipment, net Depreciation, amortization and writedown 22.4 44.0 65.4 Selling profit / (loss) of fixed assets - - (0.1) -------------------------------------------------------------------------------------------------- Cash flow before working capital changes 37.5 72.7 106.2 Changes in working capital Current assets, non-interest bearing, (increase) / decrease (36.1) (34.1) (25.3) Inventories, (increase) / decrease (8.3) (11.2) (3.9) Current liabilities, non-interest bearing, increase/ (decrease) (0.3) 4.5 (7.8) -------------------------------------------------------------------------------------------------- (44.7) (40.8) (37.0) Cash flow from operating activities before financial items and taxes (7.2) 31.9 69.2 Interest expenses paid (8.2) (25.5) (30.3) Interest income received 0.9 1.5 2.2 Other financial income received and paid 2.6 1.0 2.6 Income taxes paid (5.0) (9.4) (13.9) -------------------------------------------------------------------------------------------------- CASH FLOW FROM OPERATING ACTIVITIES (A) (16.9) (0.5) 29.8 ================================================================================================== Cash flow from investing activities: Investments in tangible and intangible assets (5.2) (12.4) (22.8) Proceeds from sale of tangible and intangible assets 0.3 4.1 4.3 -------------------------------------------------------------------------------------------------- CASH FLOW FROM INVESTING ACTIVITIES (B) (4.9) (8.3) (18.5) ==================================================================================================

POOL ACQUISITION (Amounts in millions of euro) NETHERLANDS B.V. SANITEC INTERNATIONAL S.A. ------------------ --------------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - January 1 - January 1 - January 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 ---------------------------------------------------------------------------------------------------------------------------- Cash flow from financing activities: Loans receivable, (increase) / decrease (0.6) (0.2) (0.2) (0.3) Current loans increase / (decrease) (1.4) (6.0) (15.4) (9.7) New long term loans 2.9 280.2 280.2 280.2 Amortization of long term loans -- (276.3) (276.3) (283.9) Dividends paid -- (1.2) (1.2) (1.2) Other changes, including exchange rate changes (0.3) (0.6) 2.9 0.8 ---------------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM FINANCING ACTIVITIES (C) 0.7 (4.1) (10.0) (14.1) ---------------------------------------------------------------------------------------------------------------------------- CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C), INCREASE / (DECREASE) (16.4) (38.7) (14.0) (33.3) ============================================================================================================================ Cash and cash equivalents at the beginning of period 68.0 68.0 68.0 67.9 Cash and cash equivalents at the end of period 51.6 29.3 54.0 34.6 ---------------------------------------------------------------------------------------------------------------------------- Reconciliation of cash and cash equivalents As previously reported 68.0 68.0 68.0 68.0 Foreign exchange adjustment 0.0 0.0 0.0 (0.1) ---------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at the beginning of period 68.0 68.0 68.0 67.9 Change in cash and cash equivalents (16.4) (38.7) (14.0) (33.3) ---------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 51.6 29.3 54.0 34.6 ============================================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. ------------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from January 1 - January 1 - January 1 - March 31, June 30, September 30, 2003 2003 2003 ---------------------------------------------------------------------------------------------------- Cash flow from financing activities: Loans receivable, (increase) / decrease 0.3 0.2 (0.4) Current loans increase / (decrease) (1.7) 1.6 (2.0) New long term loans 3.2 3.2 3.2 Amortization of long term loans -- (13.7) (13.7) Dividends paid -- -- (0.6) Other changes, including exchange rate changes 1.7 0.8 2.1 ---------------------------------------------------------------------------------------------------- CASH FLOW FROM FINANCING ACTIVITIES (C) 3.5 (7.9) (11.4) ---------------------------------------------------------------------------------------------------- CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C), INCREASE / (DECREASE) (18.3) (16.7) (0.1) ==================================================================================================== Cash and cash equivalents at the beginning of period 32.4 32.0 31.4 Cash and cash equivalents at the end of period 14.1 15.3 31.3 ---------------------------------------------------------------------------------------------------- Reconciliation of cash and cash equivalents As previously reported 34.6 34.6 34.6 Foreign exchange adjustment (2.2) (2.6) (3.2) ---------------------------------------------------------------------------------------------------- Cash and cash equivalents at the beginning of period 32.4 32.0 31.4 Change in cash and cash equivalents (18.3) (16.7) (0.1) ---------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 14.1 15.3 31.3 ====================================================================================================

CONSOLIDATED STATEMENTS OF CASH FLOWS, JULY - SEPTEMBER 2003 POOL ACQUISITION NETHERLANDS (Amounts in millions of euro) B.V. SANITEC INTERNATIONAL S.A. --------------- ---------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - April 1 - July 1 - October 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 -------------------------------------------------------------------------------------------------------------------- Cash flow from operating activities: Operating profit 12.3 11.1 13.2 15.5 Intangibles, property, plant and equipment, net Depreciation, amortization and writedown 22.1 28.0 22.3 23.1 Selling profit / (loss) of fixed assets 0.0 (0.2) (0.1) 0.8 -------------------------------------------------------------------------------------------------------------------- Cash flow before working capital changes 34.5 38.9 35.3 39.4 Changes in working capital Current assets, non-interest bearing, (increase) /decrease (15.2) (12.4) 15.8 12.9 Inventories, (increase) / decrease (0.9) (1.9) 7.7 (3.4) Current liabilities, non-interest bearing, increase/ (decrease) (16.7) 6.5 (15.4) (10.4) -------------------------------------------------------------------------------------------------------------------- (32.7) (7.9) 8.0 (0.9) Cash flow from operating activities before financial items and taxes 1.7 31.0 43.4 38.5 Interest expenses paid (11.3) (19.1) (5.5) (30.5) Interest income received 1.6 1.0 1.0 0.7 Other financial income received and paid 3.2 2.6 3.9 (8.3) Income taxes paid (6.9) (1.8) (2.4) (3.6) -------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM OPERATING ACTIVITIES (A) (11.7) 13.7 40.3 (3.2) -------------------------------------------------------------------------------------------------------------------- Cash flow from investing activities: Investments in tangible and intangible assets (7.7) (32.1) (9.8) (14.1) Proceeds from sale of tangible and intangible assets 2.3 0.9 0.1 2.1 -------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM INVESTING ACTIVITIES (B) (5.4) (31.1) (9.7) (12.0) ====================================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. ---------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from January 1 - April 1 - July 1 - March 31, June 30, September 30, 2003 2003 2003 ------------------------------------------------------------------------------------------------- Cash flow from operating activities: Operating profit 15.1 13.6 12.2 Intangibles, property, plant and equipment, net Depreciation, amortization and writedown 22.4 21.6 21.4 Selling profit / (loss) of fixed assets - - (0.1) ------------------------------------------------------------------------------------------------- Cash flow before working capital changes 37.5 35.2 33.5 Changes in working capital Current assets, non-interest bearing, (increase) /decrease (36.1) 2.0 8.8 Inventories, (increase) / decrease (8.3) (2.9) 7.3 Current liabilities, non-interest bearing, increase/ (decrease) (0.3) 4.8 (12.3) ------------------------------------------------------------------------------------------------- (44.7) 3.9 3.8 Cash flow from operating activities before financial items and taxes (7.2) 39.1 37.3 Interest expenses paid (8.2) (17.3) (4.8) Interest income received 0.9 0.6 0.7 Other financial income received and paid 2.6 (1.6) 1.6 Income taxes paid (5.0) (4.4) (4.5) ------------------------------------------------------------------------------------------------- CASH FLOW FROM OPERATING ACTIVITIES (A) (16.9) 16.4 30.3 ------------------------------------------------------------------------------------------------- Cash flow from investing activities: Investments in tangible and intangible assets (5.2) (7.2) (10.4) Proceeds from sale of tangible and intangible assets 0.3 3.8 0.2 ------------------------------------------------------------------------------------------------- CASH FLOW FROM INVESTING ACTIVITIES (B) (4.9) (3.4) (10.2) =================================================================================================

POOL ACQUISITION NETHERLANDS (Amounts in millions of euro) B.V. SANITEC INTERNATIONAL S.A. --------------------- -------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - April 1 - July 1 - October 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 --------------------------------------------------------------------------------------------------------------------------- Cash flow from financing activities: Loans receivable, (increase) / decrease (0.6) 0.3 0.0 (0.1) Current loans increase / (decrease) (1.4) (4.6) (9.4) 5.7 New long term loans 2.9 277.3 (0.0) 0.0 Amortization of long term loans 0.0 (276.3) 0.0 (7.6) Dividends paid 0.0 (1.2) 0.0 0.0 Other changes, including exchange rate changes (0.3) (0.3) 3.5 (2.1) --------------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM FINANCING ACTIVITIES (C) 0.7 (4.8) (5.9) (4.1) --------------------------------------------------------------------------------------------------------------------------- CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C), INCREASE / (DECREASE) (16.4) (22.2) 24.7 (19.3) =========================================================================================================================== Cash and cash equivalents at the beginning of period 68.0 51.6 29.3 54.0 Cash and cash equivalents at the end of period 51.6 29.3 54.0 34.6 --------------------------------------------------------------------------------------------------------------------------- Reconciliation of cash and cash equivalents As previously reported 68.0 51.6 29.3 54.0 Foreign exchange adjustment 0.0 0.0 0.0 (0.1) --------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at the beginning of period 68.0 51.6 29.3 53.9 Change in cash and cash equivalents (16.4) (22.2) 24.7 (19.3) --------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 51.6 29.3 54.0 34.6 ===========================================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. ----------------------------------------------- (unaudited) (unaudited) (unaudited) Period from Period from Period from January 1 - April 1 - July 1 - March 31, June 30, September 30, 2003 2003 2003 -------------------------------------------------------------------------------------------------------- Cash flow from financing activities: Loans receivable, (increase) / decrease 0.3 (0.1) (0.6) Current loans increase / (decrease) (1.7) 3.3 (3.6) New long term loans 3.2 -- -- Amortization of long term loans -- (13.7) -- Dividends paid -- -- (0.6) Other changes, including exchange rate changes 1.7 (0.9) 1.3 -------------------------------------------------------------------------------------------------------- CASH FLOW FROM FINANCING ACTIVITIES (C) 3.5 (11.4) (3.5) -------------------------------------------------------------------------------------------------------- CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C), INCREASE / (DECREASE) (18.3) 1.6 16.6 ======================================================================================================== Cash and cash equivalents at the beginning of period 32.4 13.7 14.7 Cash and cash equivalents at the end of period 14.1 15.3 31.3 -------------------------------------------------------------------------------------------------------- Reconciliation of cash and cash equivalents As previously reported 34.6 14.1 15.3 Foreign exchange adjustment (2.2) (0.4) (0.6) -------------------------------------------------------------------------------------------------------- Cash and cash equivalents at the beginning of period 32.4 13.7 14.7 Change in cash and cash equivalents (18.3) 1.6 16.6 -------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 14.1 15.3 31.3 ========================================================================================================

CONSOLIDATED STATEMENTS OF OPERATIONS, JULY - SEPTEMBER 2003 (Amounts in millions of euro) POOL ACQUISITION NETHERLANDS B.V. SANITEC INTERNATIONAL S.A. -------------- ----------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - April 1 - July 1 - October 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 -------------------------------------------------------------------------------------------------- NET SALES 251.5 257.1 236.9 239.9 Other operating income 0.9 2.7 0.9 3.0 Operating expenses Cost of products sold - materials and consumables (77.9) (79.2) (78.3) (73.4) Personnel (78.8) (79.0) (68.3) (73.5) Outside services (24.0) (25.1) (22.5) (23.0) Depreciation and writedowns (11.1) (16.8) (11.0) (12.5) Amortization of goodwill (11.1) (11.2) (11.3) (10.5) Other operating expenses (37.2) (37.4) (33.3) (34.5) -------------------------------------------------------------------------------------------------- OPERATING PROFIT 12.3 11.1 13.2 15.5 ================================================================================================== EBITDA 34.5 39.1 35.5 38.5 ==================================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. --------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from October 1 - January 1 - April 1 - July 1 - December 31, March 31, June 30, September 2002 2003 2003 30, 2003 -------------------------------------------------------------------------------------------- NET SALES 239.9 241.9 245.2 226.7 Other operating income 3.0 1.6 1.2 1.3 Operating expenses Cost of products sold - materials and consumables (73.4) (73.7) (77.2) (74.7) Personnel (73.5) (75.6) (74.8) (65.9) Outside services (23.0) (22.0) (20.6) (19.8) Depreciation and writedowns (12.5) (11.4) (10.8) (10.7) Amortization of goodwill (10.5) (11.0) (10.8) (10.7) Other operating expenses (34.5) (34.7) (38.6) (34.0) -------------------------------------------------------------------------------------------- OPERATING PROFIT 15.5 15.1 13.6 12.2 ============================================================================================ EBITDA 38.5 37.5 35.2 33.6 ============================================================================================

CONSOLIDATED SEGMENT INFORMATION (Amounts in millions of euro) POOL ACQUISITION NETHERLANDS SANITEC INTERNATIONAL S.A. B.V. ---------------- --------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Period from Period from Period from Period from January 1 - April 1 - July 1 - October 1 - March 31, June 30, September 30, December 31, 2002 2002 2002 2002 ------------------------------------------------------------------------------------------------ Net Sales Bathroom Ceramics 159.5 160.7 149.5 150.0 Bath and Shower Products 74.0 79.0 69.5 71.1 Vacuum Sewage Systems 17.9 17.5 17.9 18.8 ------------------------------------------------------------------------------------------------ TOTAL NET SALES 251.5 257.1 236.9 239.9 EBITDA Bathroom Ceramics 23.4 25.7 25.2 25.4 Bath and Shower Products 9.6 12.5 9.0 12.0 Vacuum Sewage Systems 1.5 0.9 1.3 1.1 ------------------------------------------------------------------------------------------------ TOTAL EBITDA 34.5 39.1 35.5 38.5 Net sales by region Central Europe (1) 46.5 42.7 45.9 40.0 South-West Europe 41.1 39.6 32.5 29.2 UK and Ireland 24.9 27.3 27.0 31.2 Benelux 22.9 22.6 18.6 20.6 Southern Europe 19.8 24.1 18.9 20.4 Central Eastern Europe (1) 17.4 19.2 20.5 17.4 North-East Europe 54.9 57.6 49.7 55.7 Export 6.1 6.5 5.9 6.6 Evac 17.9 17.5 17.9 18.8 ------------------------------------------------------------------------------------------------ TOTAL 251.5 257.1 236.9 239.9

NET INDEBTEDNESS (Amounts in millions of euro) POOL ACQUISITION NETHERLANDS B.V. SANITEC INTERNATIONAL S.A. --------------- ------------------------------------------- At At At At March 31, June 30, September 30, December 31, 2002 2002 2002 2002 ------------------------------------------------------------------------------------------------------ Total debt 1,141.7 1,146.7 1,139.3 1,155.6 (including shareholder loan and PIK loan) Cash and bank balances (-) 51.6 29.3 54.0 34.6 Shareholder loan (-) 312.2 312.0 312.0 334.3 PIK loan (-) 60.0 66.7 66.7 70.7 ------------------------------------------------------------------------------------------------------ TOTAL NET DEBT (1) 717.9 738.7 706.6 716.0 Interest bearing receivables / short-term (-) 6.0 6.3 6.0 5.9 Interest bearing receivables / long-term (-) 9.1 9.0 9.1 9.0 ------------------------------------------------------------------------------------------------------ NET INDEBTEDNESS (EXCLUDING SHAREHOLDER LOAN AND PIK LOAN) 702.7 723.4 691.5 701.1 ------------------------------------------------------------------------------------------------------ Shareholder loan (+) 312.2 312.0 312.0 334.3 PIK loan (+) 60.0 66.7 66.7 70.7 NET INDEBTEDNESS (INCLUDING SHAREHOLDER LOAN AND PIK LOAN) 1,074.9 1,102.1 1,070.2 1,106.1 ======================================================================================================

DEVELOPMENT OF NET INDEBTEDNESS AND EXPLANATION ON NET CASH MOVEMENT FOR OPERATING, INVESTING AND FINANCING ACTIVITIES JULY - SEPTEMBER 2003. (Amounts in millions of euro) SANITEC INTERNATIONAL CHANGE S.A. ---------------------------------------------------------------------------------------------- NET INDEBTEDNESS (INCLUDING SHAREHOLDER LOAN AND PIK) JUNE 2003 1,118.4 Change of net indebtedness Increase/(Decrease) of interest bearing debt (4.0) (Increase)/Decrease of interest bearing loan receivable (0.9) (Increase)/Decrease in cash and cash equivalents (16.0) Increase/(Decrease) of net indebtedness July - September 2003 (20.9) ---------------------------------------------------------------------------------------------- NET INDEBTEDNESS (INCL. SHAREHOLDER LOAN AND PIK) SEPTEMBER 2003 1,097.5 ---------------------------------------------------------------------------------------------- Uses/sources ---------------------------------------------------------------------------------------------- Uses/sources cash effective Cash flow from operating activities 30.3 Cash flow from investing activities (10.2) Other variances 0.8 20.9 ---------------------------------------------------------------------------------------------- DECREASE OF NET INDEBTEDNESS JULY - SEPTEMBER 2003 20.9 ==============================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. ----------------------------------------- December 31, 2002 September 30, 2003 -------------------------------------------------------------------------------------------- LONG TERM DEBT INCLUDING CURRENT PORTION Senior A 267.9 254.3 Senior B 108.9 108.4 Senior C 108.9 108.4 High Yield Bond 260.0 260.0 -------------------------------------------------------------------------------------------- 745.7 731.1 Short-term and overdrafts 4.9 2.9 PIK On-Loan I 70.7 75.7 Shareholder On-Loan I 334.3 334.3 -------------------------------------------------------------------------------------------- TOTAL 1,155.6 1,144.0 ============================================================================================

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. ------------------------------------------------------------------- 2003 2004 2005 2006 2007 Thereafter Total ------------------------------------------------------------------------------------------------ Liabilities: Long-term debt: Senior loan 11.4 39.2 48.2 58.2 67.2 246.9 471.1 Weighted av. Rate 4.8% 4.8% 4.8% 4.8% 4.8% 5.1% 4.9% PIK loan -- -- -- -- -- 75.7 75.7 Rate -- -- -- -- -- 13.0% 13.0% Weighted av. Rate 4.8% 4.8% 4.8% 4.8% 4.8% 6.9% 6.1% Interest rate swaps: Variable to fixed -- 50.0 108.6 200.0 -- -- 358.6 Average pay rate -- 4.1% 4.3% 4.0% -- -- 4.1% Interest rate options: Sold floors: -- 50,000 -- -- -- -- 50,000 Weighted av. Strike: -- 2.8% -- -- -- -- 2.8% Bought caps: -- 50,000 -- -- -- -- 50,000 Weighted av. Strike: -- 4.5% -- -- -- -- 4.5% ------------------------------------------------------------------------------------------------

(Amounts in millions of euro) SANITEC INTERNATIONAL S.A. --------------------------------------------------------------------------------------- December 31, 2002 September 30, 2003 ------------------------------------------- ----------------------------------------- Avg. Avg. Contract Carrying Fair Maturity Contract Carrying Fair Maturity Amount Value Value (months) Amount Value Value (months) ----------------------------------------------------------------- ----------------------------------------- IRS (Euribor) 330.0 (1.4) (8.0) 40.2 330.0 (9.8) (10.7) 31.1 IRS (GBP -Libor) 30.7 0.0 (0.9) 36.2 28.6 0.0 (0.6) 27.1 Interest rate options 100.0 0.0 (0.2) 24.0 100.0 0.0 (0.4) 14.9 Foreign exchange forwards 150.8 0.0 0.3 2.8 150.9 0.0 2.3 2.8 Foreign exchange options 4.2 0.0 0.0 0.7 18.6 0.0 0.1 3.5

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