Geberit AG

Good morning. I am the entity operator for this conference. Welcome to the Gaborit conference call on the third quarter results 2021. Please note that for the duration of the presentation, all participants will be in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on the telephone. This call must not be recorded for publication of broadcast. At this time, I would like to turn the conference over to Mr. Christian Buhl, CEO, a conference with Mr. Roland If, CFO, and Mr. Roman Ziegler, head of corporate communications and investment relations. Please go ahead.

Thank you for the introduction. Good morning, ladies and gentlemen, and welcome to our nine-month conference call. We will start with the third quarter key figures and then comment on the nine-month development and end with an outspoke for the rest of the year. Gerrit achieved variable results in Q3 despite the more challenging comparison phase with a strong top line growth and a lower profitability level due to strong headwinds from increased raw material prices. The last quarter in which we recorded a declining margin level was three years ago in Q3 2018, or in other words, Q3 this year was the first quarter with a declining APTA margin after 11 consecutive quarters with a continuously increasing margin level. Let me now first comment on our sales development in Q3 in more detail. Net sales increased by 8% to 855 million Swiss francs. In local currencies, net sales increased by 7% in Q3. The slowdown of growth versus H1 was driven by different base effects in the previous year with the lockdown in Q2 and catch-up effects in Q3, stock rebalancing of wholesalers this year and first signs of a weakening home improvement trend. Compared with Q3 2019 and without any base effects from the COVID-19 crisis, Next day the Q3 grew very strong in local currencies by plus 17% over the period of the last three years. In Europe, next day the local currencies increased by 6% with growth rates in almost all regions and countries. Double-digit growth rates were achieved in Venezuela with plus 29%, in Eastern Europe with plus 18%, and on the Iberian Peninsula with plus 14%. Single-digit growth rates were recorded in the Nordics with plus 6%, in Germany with plus 3%, and in Italy, UK, and France with plus 2%. In Austria and Switzerland, net sales reached previous year's levels in Q3. Outside Europe, net sales increased by 31% in Far East Pacific and declined slightly by minus 1% in America, respectively by minus 2% in Middle East Africa. The three product areas showed a different phase dynamic in the third quarter. Installation and flushing and piping systems grew with plus 12% respectively plus 8%. Bathroom systems net phase declined slightly by minus 1%. The weaker development of bathroom systems is driven by a negative phase effect from catch-up effects of the shower toilet business in Q3 last year after the temporary product interruption in Q2 and first time of a recently home improvement check. Let me turn now to the operating and financial results in Q3. The operating and financial results grew on all levels in Q3 despite substantial higher raw material prices.

APTA increased by 2% in Q3