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Sustainably enhancing quality of lifeSustainability Report 2007

Geberit AG

Schachenstrasse 77

CH-8645 Jona

T +41 (0) 55 221 63 00

F +41 (0) 55 221 67 47

www.geberit.com

Sustainably enhancing quality of life

Geberit’s objective is a sustained improvement in the quality of people’s

lives through innovative solutions in plumbing technology, thus assuming

economic, ecological, and social responsibility. This is how Geberit inter-

prets sustainability.

Geberit is the European market leader in plumbing technology and is globally

oriented. The products, systems and services are continuously being further de-

veloped and set new standards. This is only possible thanks to the top-level

performance of our employees and long-term partnerships with companies and

organizations from the fields of business, research and society. Because this

is always a matter of dialog and cooperation with people, we allow these to have

their say in our Sustainability Report 2007. Our central theme of water – in all its

manifestations – forms the backdrop for this.

Contents

2 ForewordbytheCEO

4 TheGeberitGroup

6 Ourproductsandourproductknow-how

8 Apracticedcommitmenttosustainability

12 Amarketleaderwithafocus

16 Satisfiedcustomersthankstonewstandardsinplumbingtechnology

22 Thinking,shaping,changing:workingforGeberit

28 Innovationfactoryforsustainableproducts

34 Responsiblemanagementofproductionandprocurement

40 Socialcommitment

44 CorporateGovernance

46 GlobalReportingInitiative–indexofcontents

47 Aboutthisreport

Coverpicture:ApprenticesfromGeberitPottenbrunn(AT)

“Geberithasshownthateconomicsuccess,acting

inanenvironmentallyfriendlymannerandsocialbalance

arenotacontradictioninterms.”

AlbertM.Baehny,ChiefExecutiveOfficer(CEO)

ForewordbytheCEO

Mr. Baehny, following on from 2004, Geberit is now publishing its second

Sustainability Report. Why?

Sustainabilityandsocialresponsibilityarecloselyinterrelatedandareimportant

subjectsforus.Geberithasshownthateconomicsuccess,actinginanenviron-

mentallyfriendlymannerandsocialbalancearenotacontradictioninterms.

Onthecontrary,weregardsustainabilityasanopportunitytogodownnewroads.

TheGeberitGroupwishestomaintainitstoppositionamongstitscompetitors

inthefieldofsustainabilityandthustocontinuetobearolemodelfortheindustry

infuture.

2 GeberitSustainabilityReport2007

ForewordbytheCEO

What activities are affected above all by the subject of sustainability?

Sustainabilityhasaninfluenceonourstrategicorientationandisthebasisfornumerous

decisions.Inresearchanddevelopment,wefocusonincreasingtheenvironmental

performanceofourproductsandthequalityoflifeofourcustomers.Inproduction,effi-

ciencywithoutexhaustingresourcesistraditionallyattheforefront.Wealsopayparti-

cularattentiontotheprocurementofrawmaterialsandsemi-finishedproducts,whichis

noworganizedonaglobalscale.Alsoofimportanceforusisahumanresourcespolicy

whichcanmaintaintheframeworkconditionsforgoodteamworkandvalue-oriented

leadershipatahighlevelduringperiodsofgrowth.Notonlyisourpracticedcommitment

tosustainabilityrecognizableinalloftheseactivities,butalsoourcommitmenttosocial

matters.

What has Geberit achieved in the field of sustainability over the past three years?

WehaveachievedalmostalltheobjectivessetoutintheSustainabilityReport2004;

somehaveevenbeenexceeded.Theeconomicareadistinguisheditselfthroughsus-

tainedgrowthwithhighoperatingprofitability.Intermsofproducts,wehavesucceeded

inachievingmoreeconomicwaterconsumptionandimprovedstandardsinhygiene

andacousticinsulation.Ourenvironmentalmanagementinproductionhasbeenfurther

expanded.SinceJanuary2007,wehaveheldacombinedGroupQualityandEnviron-

mentCertificateasperISO9001andISO14001.Inaddition,wehaveextendedourrisk

managementindealingswithsuppliersandcarryoutmoreprecisechecks,above

allconcerningenvironmentalandsocialrisks.Inthehumanresourcessector,wehave

evaluatedanemployeesurveyandreactedwithconcretemeasures:Wecannow

drawonaGroup-widesystemofpersonnelandsocialreporting.Newguidingprinciples

andacodeofconductarecurrentlybeingintroducedthroughouttheGroupand

implementedtogetherwithouremployees.Ourwishistoreportinatransparentand

clearlyunderstandablemanneronobjectives,measuresandresults.Thisiswhy,for

thefirsttime,wearenowpublishingtheSustainabilityReportinaccordancewiththe

guidelinesoftheGlobalReportingInitiative(GRI).

What are the fundamental challenges for the coming years?

Geberitwishestocontinueitsworldwidegrowthinfutureandtobemeasuredagainst

theyardstickofsustainability.Weshallpayparticularattentiontotwotrends:Ontheone

hand,theincreasedneedofpeoplefordesign-oriented,attractiveandlargebathrooms.

Atthesametime,wearewitnessingincreasinginterestinplumbingsystemsthatuse

lesswater,causelessnoiseandadheretohighstandardsofhygiene.Weinterpretthis

doubleneedasamandateforresponsiblecontinuationofourgrowthcourse.

GeberitSustainabilityReport2007 3

TheGeberitGroup

Acompanyhistorydatingbackmorethan130years

Salesof2.2billionSwissFrancsandanoperatingcashflowmarginof26%in2006

5,269employeesin40countries

17productionlocationsworldwide

TheGeberitGroup,withitsheadquartersinRapperswil-Jona(CH),istheEuro-

peanmarketleaderinplumbingtechnologyandisgloballyoriented.Sinceits

foundationin1874,thecompanyhasbeenoneofthepioneersintheindustry

andhasalwayssetnewtrendswithcomprehensivesystemsolutions.

In2006,Geberitachievedsalesof2.2billionSwissFrancsandcontinuedthe

pleasingandsustaineddevelopmentinprofitabilityofthepastseveralyears

withanoperatingcashflowmarginof26.1%.TheGroupemploysapproximately

5,300peopleworldwide.ThecompanyhasbeenlistedontheSwissStock

Exchangesince1999.

European market leader with a global presence

Geberithasownrepresentativesinaround40countries.Theproductsaresold

in100countriesthroughouttheworld.Thesalesemphasisisonthemain

Europeanmarkets.OutstandinggrowthperspectivesexistinCentralandEast-

ernEurope,France,UnitedKingdom,theIberianpeninsula,theNordiccoun-

tries,NorthAmerica,ChinaandSouthEastAsia.TheAsianandNorthAmerican

marketsareworkedwithproductsadaptedtoregionalrequirements.Tothis

end,localcompetencecentersexistinShanghai(CN)andChicago(US).

Thecompanyhas17specializedproductionlocationsineightdifferentcountries

closetothemostimportantsalesmarkets.Themainproductionplantsare

locatedinGermany,AustriaandSwitzerland.TheGroupalsooperatesproduc-

tionplantsintheUSAandChina.

Sales 2006 by markets

Germany(34.3%)

Italy(12.1%)

Switzerland(11.6%)

Benelux(8.4%)

Central/EasternEurope(5.9%)

Austria(5.9%)

Nordiccountries(4.2%)

UnitedKingdom/Ireland(4.1%)

France(3.4%)

Iberianpeninsula(1.7%)

MiddleEast/Africa(1.7%)

America(5.2%)

FarEast/Pacific(1.5%)


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Focused product range in the field of plumbing technology

Theproductrangewasconceivedbothfornewconstructionaswellasforreno-

vationsandmodernizations.Itincludessixproductlinesintheproductareas

ofsanitarysystems(installationandflushingsystems,wastefittingsandtraps,

public)andpipingsystems(buildingdrainagesystems,supplysystems).

Close cooperation along the entire value chain

Geberitbrandedproductsareinnovative,durableandenvironmentallyfriendly

goodsfortradecustomersandcraftsmen,aswellasforendusers.In2006,

thecompanyprovidededucationandfurthertraininginGeberitsystemsand

softwaretoolsforaround30,000plumbersandplanners,aswellasforarchi-

tects,atthecompany’sown25informationcentersinEuropeandoverseas.In

thisway,aswellasthroughdirectadvisingoftheplumbersontheconstruc-

tionsite,demandforGeberitproductsisstimulated.Inthemainsalesareaof

Europe,theproductrangeisdistributedexclusivelyviathewholesaleplumbing

trade.Inadditiontorawmaterialssuchasmetalsandplastics,semi-finished

productsandspecializedcomponentsarealsoprocuredfromexternalsources.

Geberitattachesgreatimportancetodevelopingacloseandlong-termcooper-

ationwithallsuppliers.

TheGeberitGroup

Sales 2006 by product areas and product lines

Sanitary systems (55.4%)

Installationsystems(34.1%)

Flushingsystems(10.0%)

Public(6.7%)

Wastefittingsandtraps(4.6%)

Piping systems (44.6%)

Buildingdrainagesystems(16.5%)

Supplysystems(28.1%)


Geberitofferscustomershigh-qualitysystemsolutionsforapplicationsinprivate

residentialbuildingandinpublicbuildings.Thesystemsareusedinbothreno-

vationprojectsaswellasinnewbuildings.Abroadrangeofproductsisoffered

withinthetwoproductareassanitaryandpipingsystems.Thisrangesfrom

installationsystems,concealedandexposedcisterns,includingWCandurinal

flushingsystemsaswellaslavatorytapsandtraps,throughtofreshwater,

roofdrainageanddrainagesystems.GreatimportanceisattachedtopreWall

technologywhichcreatesclearadvantagesforallpartners,inparticularduring

renovationwork.Inthisway,Geberitwishestoevenfurtherpenetrateexisting

marketsandtodevelopnewones.

Thecompanymakesresoluteandconsistentuseofitsextensiveexpertknowl-

edgeinthecreationofinnovations.Bysodoing,itmakesuseofsynergies

andoptimizestheefficiencyofentiresystems.Thismannerofthinkingandacting

isembodiedbythecentralKnow-HowInstalledidea.Amongstotherthings,

theresearchteamsconcernthemselveswithhydraulics,statics,fireprotection,

hygiene,acousticsandelectronics.

Ourproductsandourproductknow-how


TheGeberitGroup


Apracticedcommitmenttosustainability

Sustainabilityasacentralthemesince1990

Over4,500millionm3ofwatersavedthroughGeberitproductsuntil2006

Activedialogconcerningsustainabilitywithpartnersandstakeholders

HowdoesGeberitinterpretresponsibilityintermsofsustainabilityandwhich

aspectsofsustainabledevelopmenthaveaparticularinfluenceonGeberit?

Sustainabilitymeanssatisfyingtherequirementsofthepresent-daygenerationin

amannerthatwillensureagoodfoundationforfuturegenerations.Acore

questioninthisrespectistheincreasingconsumptionofnaturalresourcessuch

aswaterandenergy.

Water as a central theme

Geberit’ssustainabilitystrategyandtheobjectivesderivedfromitarebasedon

globaltrendssuchastheincreasingconsumptionofwater,ensuringhigh

standardsofhygieneaswellasontheexpectationsofinternalandexternalstake-

holders.TheUnitedNationsmillenniumgoalsonsustainabledevelopmentalso

playanimportantrole.Theyincludetheresolvetosignificantlyincreasetheshare

oftheworld’spopulationwithaccesstosafedrinkingwaterandbasicplumbing

facilities.ProductsfromGeberithelpachievethisobjective.

FirmlyestablishedenvironmentalprinciplesobligeGeberittotreatwater,energy

andotherresourcescarefully.Productionismadeasenergy-efficientandresource-

sparingaspossible.Byfarthegreatesteffectisseeninthoseproductsthat

consumewateronadailybasis.Until2006,theentiredualflushandstop-and-

go“fleetofcisterns”fromGeberit–producedsince1998andstillinoperation

today–succeededinsavingover4,500millioncubicmetersofwater.Inthis

respect,theassumptionwasmadethatthewater-savingtechnologymadeit

possibletoreplacecisternswith9-literfullflushing.Thisamountofwaterwould

besufficienttosupplyroughlyaquarterofthepopulationofAfricawithitsan-

nualbasicrequirementofwater(50litersperpersonandday).Innovative,water-

savingproductsystems,combinedwithoutstandinghygieneattributes,are

thusafocusofdiscussiononsustainabilityatGeberit.


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Sustainability strategy: objectives and principal measures Area Objective Principalmeasures2007–2009

Economy Geberitenjoyslong-termsuccessthankstoaclearbusinessstrategyanditsresoluteimplemen-tation.

Focusonplumbingtechnology

Commitmenttoinnovation

Selectivegeographicexpansion

Continuousoptimizationofbusinessprocesses

Customers Geberitoffersitscustomersafirst-classandreliableservice,andisperceivedastheleadingsystemproviderinthefieldofhygieneandwatersaving.

Promotingqualifiednext-generationplumbingprofessionalsthroughtargetededucationandfur-thertraining

Increasedapproachtothetargetgrouparchitectsandbuildingownersonthesubjectofsustainabil-ityandsustainablebuilding

Makingbetteruseofthewaterthemeforsensitiz-ingandincreasingcustomerloyalty

Employees Geberitoffersattractiveandsecurejobs.Geberitrespectshumanrightsandlabor-lawstandards.Allformsofcorruptionarerejected.

Processtowardsnewcorporatevaluespreparedjointlywithemployees

WorldwideCodeofConductintroducedin2007bymeansofGroup-wideinformation

Implementationofresultsfromemployeesurveys

Products Geberitproductsareenvironmentallyfriendly,water-savingandensurehighstandardsofhygiene.

SystematicintegrationofenvironmentalaspectsintonewdevelopmentsthroughEco-Design

Searchforalternativestotheproblematichexa-valentchromeinsurfacecoating

Ifpossible,alldisposablepartsfromalternativeplasticsorregenerate

Production Geberitoperatesaclean,safeandenergy-efficientproduction,along-livingandhigh-qualityinfra-structure,andoptimizedlogisticsintermsofenergyconsumption,emissionsandpackaging.

CertificationofallproductionplantsasperISO14001by2008

EstablishindustrialhealthandsafetydelegatealsoatGrouplevel

ImplementGroup-widestrategyonenergyefficiencyandrenewableenergies

Procurement GeberitworksexclusivelywithsupplierswhomakethecommitmenttoadheretotheCodeofConduct.

CodeofConductforsuppliersdrawnupin2007

100%ofsuppliersfromregionswithincreasedsustainabilityriskwillsigntheCodeofConductby2008

Socialcommitment Geberittakesonsocialcommitmentswithacloselinktothecorebusiness,theknow-howandthecorporatecultureandthussupportstheUNmillenniumgoals.

Long-termpartnershipwithnon-governmentalorganization(NGO)inthefieldofbasicplumbingfacilitiesasfrom2007

AccessiontotheUnitedNationsGlobalCompact2008

TheGeberitGroup


Geberitexertsaninfluenceontheenvironmentatvariouslevels.Thefocusinthe

productionplantsisonpermanentoptimizationofenergyconsumption.In2006,

all17oftheGroup’splantsusedroughlyasmuchelectricityasasmalltownof

15,000inhabitants.ForGeberit,however,byfarthegreatestinfluenceonenergy

consumptionresultsfromimprovementsintheuseoftheproductsproduced,

aboveallintoiletflushes.Overthecourseoftheirentirelifecycle,thecisterns

producedin2006willrequireatotalofaround16timesasmuchenergy–forthe

provisionanddisposalofthewaterconsumed–astheenergyconsumption

oftheproductionplantsduringayear.Consequently,savingwateralsomeans

savingenergy.

Water-savingdevelopmentsareparticularlyimportant;however,theyarenot

theonlyimportantsustainabilitythemeforGeberit.Sustainedandprofitablegrowth

isthecentraleconomicobjective.Atthesametime,thehighlevelofcustomer

satisfactionandloyaltyshouldberetained.Theover5,000employeesarepaid

inlinewithmarketratesandhaveattractivedevelopmentopportunities.In

additiontoambitiousqualityrequirements,thecooperationwithsuppliersmust

alsotakeaccountofenvironmentalaspectsandtheadherencetohighethical

standards.Soastobeabletopursuethesustainabilitythemesinanintegral

manner,GeberithasdevelopedaSustainabilityStrategywithconcreteobjectives

andmeasures.

Dialog with important partners as part of the corporate culture

Geberitmaintainsaclosedialogwithstakeholdersofparticularrelevanceforthe

workofGeberitorfundamentalforthesuccessofthecompany.Feedbackfrom

thesediscussionsflowsintothesustainabilitystrategy.Contactsinthecourseof

dailydealingswithvariouspartnersofferthebestopportunityfordialog.Addi-

tionally,forexample,customersurveyshavebeencarriedoutonacountrylevel,

thusmakingitpossibletodeterminetheprecisetrainingrequirements.Surveys

amongstemployeeshaveresultedinnewideasformanagementdiscussionsin

ordertodeterminedevelopmentopportunitiesevenmoreeffectively.Initialdis-

cussionswithnewsuppliershaveprovidedadditionalpointsofreferenceforthe

collaborationinenvironmentalandsocialmatters.Andthecontinuousexchange

ofinformationwithnon-profit-makingorganizationsandassociationshas

revealednewoptionsforsocialcommitmentsinlinewiththeGeberitculture.The

ruleapplicablefortheexchangeofinformationwithallpartnersisthatcommu-

nicationiscommittedtothemotto“clearandtrue”.

Engagement in organizations with a sustainability connection

Geberitisinvolvedinvariousassociationsandorganizationsthatmakeacontri-

butiontowardssustainability.Substantialcommitmentsintheperiodunder

reviewwere:

·Aseatonthe“Health,SafetyandEnvironment”workinggroupofTEPPFA(The

EuropeanPlasticsPipesandFittingsAssociation)

·InvolvementintheöbuAssociation(SwissAssociationforEnvironmentally

ConsciousManagement)

·MemberofTransparency,aninternationalorganizationfortheworld-wide

combatingofcorruption


ProfAlexanderJ.B.ZehnderisPresidentoftheBoardoftheSwissFederalInstitutesofTech-nology(ETHBoard)andformerDirectoroftheWaterResearchInstitute(Eawag)inDüben-dorf(CH).

Professor Zehnder, what role

does water play in sustainable

development?

Wateristhekeytosustainable

development.Mostinfectiousdis-

easesthroughouttheworldare

transmittedbycontaminatedwater.

Thequalityofdrinkingwaterand

waterforpersonalhygieneisofcen-

tralimportance.Onlyahealthy

populationcanfreeitselffrompov-

erty.Thequantityofwateravailable

isimportantforthegeneration

offoodstuffs.Roughly80percentof

theaverageamountofwatercon-

sumedbyonepersonisrequiredfor

theproductionoffood.Inthisre-

spect,weareincreasinglyrunning

upagainstlimitingfactorsamongst

thegrowingworldpopulation.

Can water-saving technology

make a fundamental contribution

towards solving the problem?

Byallmeans.Thusforexample,effi-

cientplumbingtechnologyensures

thataslittleofthepreciousand

expensivelyprocessedwateras

possibleiswasted.Water-saving

technologycontributestowards

ensuringthatwastewaterisnot

dilutedunnecessarilyandtherefore

thatwastewaterpurificationisno

moreexpensivethannecessary.

Watersavedintheplumbingfieldis

additionalwateravailableforthe

productionoffoodstuffs.

How do you estimate the role of

water scarcity and plumbing tech-

nology in Asia?

Cleanwaterthatisavailableinsuffi-

cientquantitiesisoneofthemost

importantprerequisitesforthesuc-

cessfuldevelopmentofcountries

suchasChina.Asdevelopmentis

onlyjustbeginninginmanycities,

itwouldbepossibletousethelatest

plumbingtechnologyfromthe

verybeginning.Thisisanopportu-

nityforcompaniessuchasGeberit,

wherebylocaltrainingisalso

importantinadditiontotechnical

quality.

It is often said that there is

enough water in Switzerland. Is

saving water of any importance

at all here?

Thepublicwaterinfrastructure

requiresrenewingevery50to80

years.Overthenext20years,

costsofaroundCHF150billionare

reckonedwithinSwitzerland–

thatmeansCHF15,000to20,000

perhead.Savingwaterlowersthe

quantityofwastewaterandthus

long-termcosts.Switzerlandisalso

adevelopmentmarketfortech-

nologyintheplumbingfield–tech-

nologythatisurgentlyneeded

throughouttheworldandwhichthus

offersmajoropportunitiesonthe

worldmarket.

TheGeberitGroup

ThroughthevoluntaryapplicationofthestandardsoftheGlobalReportingInitia-

tive(GRI)inthepresentreport,Geberitismakingacontributiontowardstrans-

parencyandcomparabilityinreportingonsustainability.Geberitiscurrentlynota

formalmemberoftheUnitedNationsGlobalCompact;nevertheless,itorients

itselftowardstheobjectivesofthischarterandalreadymeetsitsrequirementsto

afundamentalextent.


Wirtschaft

SinceitsInitialPublicOffering,RemoRosenauhasbeenmonitoringGeberitasananalyst,

holdsregulardiscussionswiththemanagementandvisitstheproductionplants.Sofar,

hehasbeenconvincedbythehighinnovativestrength,theoutstandingfinancialperformance

andbythefactthatactionsmatchwords.AccordingtoRosenau,Geberitcouldalso

contributetoeasingtheincreasingglobalscarcityofwaterthroughitsproducts.Asaresult,

thisshouldalsomeanexcellentopportunitiesontheworldmarketinfuture,enablingthe

creationoflong-termvalueashasbeenthecaseinthepast.

“Geberitisamasterofinnovation.”RemoRosenau,FinancialAnalyst,BankVontobel,Zurich(CH)

Uninterruptedgrowthtrendwithhighprofitability

Processesandinfrastructureonahighlevel

Geberitsharespopularamongstsustainability-consciousinvestors

TheGeberitGrouphasbeenexperiencingpleasinggrowthformanyyears,pri-

marilyasaresultoforganicgrowth,additionally,however,throughselective

acquisitions.Saleshaveincreasedbyanaverageof9.2%p.a.overthepastten

years(CAGR).Atthesametime,operativeprofitabilityhascontinuedtorise

further.Eachyear,thecompanygeneratesasubstantialamountoffreeliquid

funds.TheseareusedforfurtherinvestmentsinthefutureofGeberit.Never-

theless,thesefundsarealsoavailablefortherepaymentofdebts,fordividend

payments,therepurchaseofsharesorforacquisitions.Thankstothehealthy

financialsituation,Geberitisadependableemployeraswellasareliablepartner

forcustomers,suppliersandtheinterestedpublic.Theshareholdersparticipate

inthesuccessthroughapermanentincreaseinthevalueofthecompanyand

increaseddividendpayments.

AdecisivefactorinthesuccessofGeberitsofarisaclearstrategy,combined

withresoluteandconsistentimplementation.Thestrategywiththefourelements

setoutbelowformsthebasisforfuturesuccess:

1. Focus on plumbing technology

Geberitisfocusingonplumbingtechnology.Thecompanyhaslongandpro-

foundexpertiseinthisarea.Themainfocusofattentionisonthetransport

ofwaterinbuildings.Here,integratedplumbingtechnologyofsuperiorquality

isoffered.

2. Commitment to innovation

ForGeberit,theongoingoptimizationandextensionoftheproductrangeis

decisiveforfuturesuccess.Inadditiontomeetingcustomerrequirements,the

productrangemustsatisfythehighestenvironmentalstandards.At2.0%of

sales,ourinvestmentinresearchanddevelopmentisabovethestandardlevel

forourindustry.Around100patentshavebeenappliedforoverthepastfive

yearstoprotecttheinnovations.

Economy

Amarketleaderwithafocus

Net income 2004–2006

2006 2005 2004

EBIT 482.2 366.9 305.5

EBITDA 569.1 455.9 453.4

Netresult 355.0 262.5 194.4

Sales development 1996–2006 (inCHFmillion)

2,250

2,000

1,750

1,500

1,250

1,000

750

500

250

0

96 97 98 99 00 01 02 03 04 05 06


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Integration of Mapress into the Geberit

Group brought to a successful conclusion

In2004,theMapressproductionplantinLan-

genfeld(DE),oneoftheworld’sleadingmanu-

facturersofpressfittingsystemsmadefrom

stainlesssteel,carbonsteelandcopper,was

successfullyintegratedintotheGeberitGroup.

Around500employeesworkforGeberit

Mapresscustomersinproduction,logistics

andadministration.Marketingandsalesare

fromasinglesource.Geberithasalsofully

completedtheintegrationofMapressonthe

productsidewiththedevelopmentofan

adapterfittingforusebetweentheMepla

multilayerandtheMapresspipes.

3. Selective geographic expansion

TheacceleratedpenetrationofmarketssuchasFrance,GreatBritain,theIberian

peninsula,EasternEuropeandtheNordiccountriesisanimportantfactorin

thelong-termsuccess.OutsideofEurope,thecompanyadoptsaveryselective

approach.InadditiontoourinvolvementinNorthAmerica,Geberitiscon-

centratingpredominantlyontheprojectbusinessintheregionsChina,Singapore,

SouthKorea,AustraliaandtheUnitedArabEmirates.Inthisrespect,thecom-

panyalwaysadheresstrictlytotheexistinghighstandardsintermsofquality

andprofitability.Whenbuildingupandexpandingthelocalorganizations,dealing

respectfullywithdifferingculturesisregardedasastandardofdecencyand,

additionally,asasuccessfactor.ThismakesGeberitaninternationallyrespected

partner.

4. Continuous optimization of business processes

Geberitiscontinuouslyoptimizingbusinessprocessesandinfrastructurewitha

long-termhorizon.Withjustafewexceptions,bothareashavereachedalevel

withwhichthegrowthplannedforthemediumtermcanbemanaged.Oneof

themostimportantstrategictasksisthepermanentoptimizationofthebusiness

processes.Ontheonehand,inGroup-wideprojectsinwhich,forexample,

thelogisticsstrategyisfurtherdevelopedortheEuropeandistributionactivities

reviewed.Ontheotherhand,itistheemployeeswhorecognizeopportunities

forimprovementtimeaftertime,thusmakingadecisivecontributiontotheposi-

tivedevelopment.

Improved reputation on the capital market as a result of efforts in the field

of sustainability

Theeffortsintermsofsustainablecorporatemanagementarebeingrewarded

bythecapitalmarket.Geberitiswellrepresentedinthe–comparativelystill

smallbutconstantlygrowing–segmentofsustainabilitystockindexesandsus-

tainabilityfunds.ThusitisthattheGeberitsharenowfeaturesintheDowJones

SustainabilityIndex(DJSISTOXX),theEthibelSustainabilityIndex(ESI)and

theFTSE4GoodIndex(EuropeandGlobal).Inaddition,renownedsustainability

fundsholdtheGeberittitlesintheirportfolios.Geberit’sobjectiveistocontinue


toplayasignificantroleintheconstantlygrowinginvestmentsegments“Sus-

tainability”and“Water”.

Thesustainedpositivedevelopmentofthesharepricealsobearswitnesstoa

long-termandsuccessfulstrategyimplementation.Intheperiodbetweenthe

InitialPublicOfferinginJune1999andtheendof2006,theGeberitsharerose

byanaverageof26.0%p.a.

An overview of quantitative economic aspects

Setoutbelowisanoverviewofsomefundamentaleconomickeyfigures.Inpart,

thesewillbediscussedingreaterdepthintheensuingchapters.

(inCHFmillion) 2006 2005 2004

Direct economic value added Sales 2,183.5 1,922.9 1,906.8

Operatingresult(EBIT) 482.2 366.9 305.5

Economic values passed on Operatingexpenses,netexcludingpersonnelexpenses 924.2 854.8 906.8

Personnelexpenses 442.3 418.5 441.1

Wagesandsalaries 343.5 322.5 344.4

Pensioncontributions 17.2 19.6 11.5

Othersocialbenefits 62.0 58.9 67.6 Otherpersonnelexpenses 19.6 17.5 17.6

Paymentstoprovidersofcapital 116.2 107.5 92.8

Dividends 101.5 90.3 69.6

Interest 14.7 17.2 23.2

Taxes(incometaxespaid) 123.1 80.6 62.1Socialcommitments(contributionsanddonations) 1.9 5.0 1.9

Retained economic values Investmentsinproperty,plantandequipment 81.3 79.5 87.8Divestmentsofproperty,plantandequipment 2.6 6.3 9.2

Repurchaseofshares 179.0 0.0 0.0

Geberit wins the “Best of European Business Award” 2006

Itisnotpossibletoapplytobeconsideredfortheprize,whichisawardedbytheConsultingCompany

RolandBergerincooperationwithmediacompaniesintenEuropeancountries.Morethan1,000Swiss

companiesoperatingEurope-widewereanalyzedandassessedonthebasisofstrictcriteria.Geberit

achievedtoppositionasthestrongestgrowingSwisscompany,aboveallasaresultofthehighand

profitablegrowthbutalsothankstoitshighinnovativestrength.In2007,Geberitverynarrowlymissed

outonanotherdistinction:the“CorporateSocialResponsibility(CSR)Award”,likewiseawardedby

RolandBerger.Asaclosesecond,Geberitwaspraisedaboveallforitsmeasuresinthefieldofenviron-

mentalprotectionaswellasforitsenvironmentallyfriendlyproducts.

Economy

Development of the share price since the Initial Public Offering (inCHF)

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0 00 01 02 03 04 05 06

Geberitshare

SwissPerformanceIndex(SPI)

(Source:ThomsonFinancialDatastream)


16 GeberitNachhaltigkeitsbericht2007

WolfgangSchulztookoverthe40-year-oldplumbinginstallationbusinessfromhisfather

eightyearsago.Withastaffof20,heworksonmanymedium-sizedandlargerobjects

suchasretirementandnursinghomes.Thesecustomersarequalityorientedandwantnot

onlyconsistentandgoodqualityproductsbutalsoexpectmaximumpossiblehygiene.

WolfgangSchulzusesexclusivelyGeberitcomponents.Thereliabilityoftheproducts,the

quick,uncomplicatedinstallationandtheflexibilityofdesignoftheGeberitsystemsare

appreciatedequallyasmuchbyhisemployeesasbyhiscustomers.

“WepassoursatisfactionwithGeberitontotheenduser.”WolfgangSchulz,ManagingDirectorSchulzsanitäreAnlagen,Haigerloch(DE)

Satisfied customers thanks to new standards in plumbing technology

Geberit products are the key to design-oriented and hygienically optimized plumbing areas

Customer training courses with around 30,000 participants in 2006

Geberit as a partner for sustainable building

Geberit is not simply products. The concept Know-How Installed characterizes

the company in a fitting manner. As a knowledge-oriented company, Geberit

creates a constantly growing fund of know-how and passes this on to its cus-

tomers. Permanently optimized quality standards and reliability, as well as

quick and simple installation, are success factors for high customer satisfaction.

New marketing organization strengthens service for customers

In recent years, Geberit has taken steps to act in an even more market- and

customer-oriented manner. The strengthening of marketing at Group level took

account of the increasing internationalization of business and of the need to

exploit synergies. Cooperation between marketing, sales and product manage-

ment was further optimized with the aim of satisfying customer requirements

to an even greater extent with innovative new products.

In terms of market servicing, Geberit is placing its faith resolutely in the three-

stage distribution channel. Geberit products are distributed exclusively via the

wholesale trade. The trade subsequently sells the products to plumbers and

also maintains, for example, displays, in which the Geberit products are shown

to the end user. The partnership approach is demonstrated through joint

marketing campaigns with the wholesale trade. At the same time, Geberit

provides plumbers and planners with intensive support through training

and advising which in turn leads to an increased demand for Geberit products

at the wholesalers.

Architects and building contractors are an increasingly important target group

for the exchange of information and training, as they recognize and set trends in

the building sector. Geberit wishes to take up these trends as early as possible

and to implement them in concrete products. End users are becoming increas-

ingly important for Geberit to the extent that their need for design-oriented, com-

Customer

The business model

Geberit Organization

Wholesaler

Plumber

End user

Planner/Architect/Contractor

Push sales

Pull demand

Training/Support

Geberit Sustainability Report 2007 17

·

·

·

fortableandhygienicallyoptimizedplumbingareasisconstantlyrising.Conse-

quently,thecompany’sadvertisingexplainshowGeberitcancontributetowards

thistypeofsolution.

Setting new standards in plumbing technology with Know-How Installed

Accordingtoacustomersurvey,thetermsquality,functionality,reliabilityand

partnershipdescribethecoreofthecompany.Theproductrange,theorganization

andtherelationswithcustomersandbusinesspartnersarebestsummarized

usingtheseterms.However,thisisnotsufficientforensuringfuturesuccess.

Thefundamentalvalues“integration”,“innovation”and“knowledge”distinguish

Geberitfromtheothermarketplayers.Thesevaluescharacterizethethinking

andactionsofGeberitemployees.Theyguaranteethatthepositionasmarket

leadercanbemaintainedandthatnewstandardscanbesetinplumbing

technologytimeaftertime.Inthisrespect,theextensivespecialistknowledge

shouldbeusedresolutelyforthecreationofinnovations.Thiswillenablethe

useofsynergiesandtheoptimizationoftheefficiencyofentiresystems.Based

onthis,GeberithasdevelopedamarketingconceptinKnow-HowInstalled

withwhichthepositionofmarketleaderistobeunderlined.

Top quality thanks to professional management processes

Qualitycreatesenthusiasmandtrust.Itcanonlydevelopfromqualityawareness

andisstandardatGeberit.Qualityistheresultofcontrolledprocesses

throughoutthecompany,andissupportedbythecentralqualitymanagement

department.

Geberitstrivestowardsthezero-errorprinciple.Onthebasisofsystematic

analyses,measuresandproceduresaredevelopedwhichareintendedtoexclude

defectsonapreventativebasis.Thecompanyorientsitselftowardscustomer

requirements,statutoryregulationsandstandards.Theobjectiveistoexceed

thesetimeaftertime.Allproductspassthroughadefinedprocess.Thusfor

example,healthandsafetyrequirementsofallproductsaretestedandensured,

fromthedevelopmentstagethroughtocertificationandmanufacture,andright

throughtouse.

Over 7,200 workshop participants

TheinformationcentersinPfullendorf(DE)

andLangenfeld(DE)illustratetheintensityof

thetrainingprograms.In2006,atotalof

545workshopswereorganizedatthesetwo

locations,duringwhich4,758plumbers,

357plannersandarchitects,265wholesale

employees,1,473representativesofvoca-

tionalschoolsandtechnologyuniversitiesas

wellas379internationalvisitorsweretrained.

The Know-How Installed marketing concept


Inno

vatio

nQuality

FunctionalityReliabilityPartnership

Know-How

Knowled

ge

Integration

Installed

Themanagementofqualityensuresefficienthandlingofcomplaintswithintegrated

erroranalysis,theinitiationofsustainedcorrectivemeasuresandthedevelop-

mentofconceptsforcustomerservicingincooperationwiththesalesorganiza-

tions,plantsanddevelopment.Geberithasachievedahighstandardinthe

processingofcomplaints,andreactsdirectlyandinasolution-orientedmanner

ineachindividualcase.Thisisdocumentedbyfundamentalindicators:Group-

wide,therehasneverbeenanycourtjudgmentagainstGeberitinvolvingcontra-

ventionsofregulationsonthehealthandsafetyofproductsandservices,

orproductandserviceinformation.Likewise,nosignificantfineshaveeverbeen

imposedinconnectionwithGeberitproductsandservicesortheiruse.Inthe

marketingsectortoo,therearenoknownviolationsofcustomerdataprotection.

Training as a central success factor in customer relations

Nevertheless,goodproductquality,aswellasspeed,simplicityandsafetyin

installationanduse,arenotsufficientbythemselves.Activeservicingofthe

marketisextremelyimportant.Around500technicaladvisersworkinginthefield

areincontactonadailybasiswithplumbers,plannersandarchitects,inpar-

ticular.In2006,around30,000customerswereprovidedwitheducationand

furthertraininginGeberitsystemsandsoftwaretoolsinthe25informationcenters

inEuropeandoverseas.Thecompanycooperatescloselywithitscustomers

onsubjectssuchashygiene,hydraulics,staticsaswellasfireprotectionand

acousticinsulation,andoffersintensivetrainingmeasures.Inadditiontomany

customereventsorganizedbythelocalsalescompanies,numerousexhibitions

atwhichGeberitispresentserveasaplatformforkeepingupcustomercon-

tactsandcommunicatingtheinnovativestrength.Targetedtrainingmeasuresare

alsoofferedforspecialistmastercraftsman’sschoolsanduniversities,residential

buildingcompanies,contractorsandpropertymanagementcompanies,pro-

ductionengineersinlargeplantsandemployeesfrombuildingandhealthauthor-

ities.Inordertoincreasetransparency,GeberithasbeenofferingspecialLife

CycleAssessmentleafletsforvariousproductsforanumberofyears.Theseillus-

tratethemostimportantenvironmentalaspects.

Customer

Geberit on tour

InSwitzerland,Geberitlaunchedmorethan

300newproductsontothemarketin2006.

Geberitworkstogetherwithwholesalersin

ordertokeepplumbersuptodateasregards

thetopthemesandnewdevelopmentsin

theplumbingfield.Truetothemotto“Nocom-

promise”,atotalof33eventswereheld

throughoutSwitzerlandin2006.Campaigns

concerningpipingandpreWallsystems

informedaround1,900plumbersregarding

currentsolutionswhichenableadherence

tonewfireprotectionandacousticinsulation

standardsaswellasensuringhighquality

andfunctionality.


Satisfied customers as the basis for success

ThequalityofGeberitproductsandservicesisthebasisforthesuccessof

plumbersinthemarketplace.Theplumbercanbecertainthat,throughthein-

stallationofGeberitproducts,heissellinghiscustomershigh-qualityandreliable

solutions.Asanadditionalservice,Geberitofferssoftwareasasimple,target-

orientedandoperator-friendlyplatformforplanningandthepreparationofquo-

tations.Standard-conformcalculationscanbepreparedintime-savingmanner

andimplementedinquotationsoptimallytailoredtocustomerrequirements.

Thiscontributiontotheirsuccessisgreatlyappreciatedbythecustomers.Ensur-

ingcustomersatisfactionalsoincludesthetakingbackofoldproducts.Here

too,Geberitgoesbeyondthestatutoryminimumrequirementsandtakesback

electricalappliances,suchasWCcontrolunits,onavoluntarybasis.

AperceptionstudycarriedoutinsevenEuropeancountrieshasconfirmed

thatGeberitisastrong,highlyrespectedbrandinthepremiumsegment.Never-

theless,itwasalsoclearthatthecompanyhasareputationofbeingtoocon-

servative,andofnotcommunicatingandpositioningitscapabilitiesandspecialist

knowledgetoasufficientextentinthemarket.ForGeberit,thisservedasmoti-

vationtoinvestigatecommunicationwithcustomersandtoadaptitaccordingly.

Thecustomershouldbekeptbetterinformedregardingthelatestdevelopments.

TheaimistoshowwhereandhowGeberitisshapingthetrendsoftomorrow.

Shaping the future together with our partners

Geberitwishestosettrendsinplumbingtechnologytogetherwithitscustomers.

Anincreasinglyimportanttopicissustainablebuilding.Geberitmaintainsa

dialogwithleadingarchitects,forexampleconcerningthequestionofhowwater

saving,flexibleandmodularbuilding,andoptimumacousticinsulationcan

supportasustainablemannerofbuildingand,atthesametime,enableelegant

bathroomswithmaximumcomfort.Asmarketleader,Geberitisalsowell

positionedintermsoftouch-freetechnologiestorespondtotheincreasingsen-

sitizationregardinghygieneaspectswithconcretesolutions.Togetherwith

itspartners,newtrendsshouldbesetinpublicandsemi-publicWCfacilitiesas

wellasinprivateresidentialbuildings.

In Singapore saving water is a State

objective

Singaporeobtains60%ofitswaterfromneigh-

boringMalaysiaandwishestoreducethis

dependence.Consequently,thegovernment

haslaiddownwater-savingobjectives(are-

ductionindailyconsumptionfrom162liters

perpersonin2004to155litersin2012)and

wishestomakedualflushcompulsoryforall

WCapplications.Geberitofferstheproducts

requiredforthis:e.g.inthe“Pinnacle”project,

thewinningprojectinaStateinvitationtoten-

derforresidentialbuilding,orinthehigh-rise

buildingproject“TheSail”,privatelyowned

apartmentsforpeoplewithhigherexpectations.


Sustainable building at the highest level

GeberitsupportsthebuildingofthenewMonte

RosaHutinthecenterofthehighalpineSwiss

mountains.Thebuilding,planned2,795meters

abovesealevelbytheSwissFederalInstitute

ofTechnologyZurich(ETH)togetherwiththe

SwissAlpineClubSAC,combinesresearch

andtop-leveltechnologywithdesignandsus-

tainability.Meltwaterfromthesurrounding

areaisusedforthewatersupply.Theplumbing

facilities,suchastoilets,whichusepurified

wastewater,arerealizedwithGeberitknow-

howandproducts.

Photomontage:ETHZurich(CH)

Customer

MatteoThun,aninternationallyknownandre-nownedarchitectfromMilan(IT),issettingnewtrendsinsustainablebuilding.Healsousestheterm“Aestheticsoftheinvisible”incon-nectionwithGeberit.

What does sustainable building

mean to you?

Thetermisbasedonarespectful

understandingofthenatureof

nature.Forme,thismeansadapted

tothelandscape,incorporated

intothecountryside,withoutdisturb-

ingthenaturaltopography.In

organicarchitecture,buildingloca-

tion,structureandfacilitiesbecome

aunitandareinharmonywiththe

surroundingarea.

How do you implement your

sustainability philosophy?

Iendeavortoanswervariousques-

tionsformyself:Whatistheratioof

heatingenergysavedtoproduction

energyused?Whatisthesituation

asregardsthedisposalofmaterials,

howscarcearetherawmaterials?

Anexampleofthisiswoodinhigh-

riseconstruction.SincetheSecond

WorldWar,only60to70percent

usehasbeenmadeofrenewable

woodfromEuropeanforests.Ifone

weretojustunderdoubletoday’s

marketshareofwood-frameconstruc-

tion,itwouldbepossibletouse

theamountofwoodthatwould

resultfromecologicallysensibleuse

offorests.

What is behind the term

“Aesthetics of the invisible”?

Iliketoexplainthisusingtheexample

ofacompactmoduleforbathroom

andtoiletthathasbeendeveloped

inclosecooperationwithGeberit.

Thebasisforthedesignofthe“Aes-

theticsoftheinvisible”isinterface

optimization.Thismeansthatall

technicalelementsaresituated

behindthesurfaces.Theresultis

flexibilityandthepossibilityofquick

revision.

Thankstotheintegrationofallcom-

ponentsintoamoduleandbehind

smoothsurfaces,fewerdepositsof

dustanddirtresult.Theresultis

cleanlinessandhygiene.Conse-

quently,thecompactmoduleisout-

standinglywellsuitedforpublicand

semi-publicareasandtoilets,for

exampleinhotelsorairports.The

minimallanguageofform,freefrom

disturbingelements,generatesa

positiveassociationwiththeproduct

onthepartoftheuser,andalso

communicatesonapsychological

levelthatthereisnoriskofillnessor

dirt.Putbriefly:aperfectshape

whichconformstothefunctionand

identityoftheproduct.



ChristofBlatterhasbeenworkingforGeberitfornineyears.Immediatelyfollowinghisstudies,

hejoinedthecompanyasJuniorProjectManagerforthedevelopmentofEasternmar-

kets,spenttwoyearsinDubaiandhasnowbeeninMoscowforfouryears.There,hehas

successfullybuiltupthenationalrepresentationorganization.Forhim,itisimportantto

passonthesupport,theconfidenceandthefreedomthathehasreceivedfromheadquarters

tohisteam.HealsowantstoenablehisRussiancolleaguestobenefitfromthesamegood

careeropportunitiesthathehasenjoyed.HewillbereturningtoSwitzerlandshortlyandis

pleasedthataRussianemployeewillbetakingoverthecompanymanagementinMoscow.

“Iwassoongiventhenecessaryfreedom,yetIwasneverleftalone.”ChristofBlatter,HeadRepresentativeOfficeGeberitRussia,Moscow(RU)

Thinking,shaping,changing:workingforGeberit

Corporatevaluesandguidelinesmadetangible

Educationandfurthertrainingatahighlevel

Goodrelationstotheemployeerepresentatives

Withinnovativesolutionsinplumbingtechnology,Geberitwishestoimprove

people’squalityoflifeonasustainablebasis.Everyday,allemployeesworldwide

makeavaluablecontributiontotherealizationofthisvision.Highethicalstan-

dards,teamspirit,enthusiasmforthecompany,modestyandthewillingnessto

adapttoarapidlychangingenvironmentcharacterizethecorporateculture

andthuscreatethesuccess.

Toensurethissuccessinthelongterm,Geberitorientsitselftowardscentral

guidelinesandfundamentalvalues.SinceDecember2006,thesehavebeen

summarizedinthenew“GeberitCompass”andserveasaframeworkforaction

androadmapintothefutureforallemployees.Anewmanagementteamat

thetopoftheGroupandtheincreasinginternationalizationhavenecessitated

thefurtherdevelopmentofprovenguidelines.Forthisreason,thenewGeberit

Compasshasreplacedtheprevious“GeberitIdentity”.

International cooperation encourages team spirit

TheGeberitCompassstates:“Therightemployeesareourmostimportant

asset.”Asoftheendof2006,Geberitemployedatotalof5,269peoplefrom63

nationsworldwide.Inthisrespect,thereisanoticeableincreaseintheimpor-

tanceofcooperationininternationalnetworksandorganization-spanningteams.

TheGeberitCodeofConductwasdrawnupinordertotakeaccountofthis

development.Itappliesforallemployeesworldwideand–alongsidetheGeberit

Compass–formsthebasisfordailyworkandrequiresstrictadherencetolaws

andethicalstandards.Itoffersprotectionagainstworkplacebullying,sexualhar-

assment,andchildorforcedlabor,aswellasagainstdiscrimination,forexample

basedonnationality,ethnicorigin,religion,genderorsexualorientation.Unfair

businesspracticessuchascorruptionorrestrictionsonfaircompetitionare

rejected.UponintroductionoftheCodeofConduct,allemployeeswillbepro-

videdwithextensiveinformationconcerningtherightsandobligationscontained

therein.EmployeescommittoadheretothisCodeofConductand,atthe

sametime,acquiretherighttoreportviolationsinconfidenceandwithprotection

againstreprisals.

Employees


·

·

·

Personal development work in Michigan

City

TheproductionplantinMichiganCity(US)

requiredthesupportofanexperiencedMan-

ageratshortnotice.HartmutMüller,who

hadsuccessfullybuiltuptheLichtenstein(DE)

plantasManagingDirector,spontaneously

offeredhisservices.Duringhisthree-month

assignmentintheUSA,hesucceededintrans-

ferringhisknow-howtothebenefitofall

involved.Theworkininterculturalteamswas

anenrichingexperienceforbothsides.

Education and further training as a companion

Qualifiedandcommittedemployeesareindispensableforthefuturesuccessof

Geberit.Forthisreason,thecompanyattachesparticularimportancetowell-

foundededucationandfurthertrainingofallemployeesandtoequalityofoppor-

tunities.Anexampleofthisistheemploymentof80severelyhandicapped

personswithintheGeberitGroup.

AtGeberit,theprofessionalcareerofayoungpersoncanbeginwithcommercial,

industrialortechnicaltraining.Whetherplasticstechnicianorindustrialclerk:

theaimistocommunicateallskillsrequiredforexpert,independentandautono-

mousexerciseofthechosenprofession.Asoftheendof2006Geberitemployed

177apprentices.

Thecompanyanditsproductsareexplainedtonewemployeesinvariousintro-

ductionprogramswhentheytakeuptheirpositions.Theserangefromindividually

designedintroductorymeetingsinvariousdepartmentsthroughtotheweek-

longbasiccoursewhichcommunicatespracticallyrelatedGeberitknowledgein

smallgroups.

Ineverydayworkinglife,thepersonalandprofessionaldevelopmentofeach

individualemployeeisencouragedinavarietyofways.Thiscoversallareasof

work,functionsandagegroups.Opportunitiesfordevelopmentareidentified

withintheframeworkofhalf-yearlyorannualappraisalinterviewsandobjective-

agreementmeetings.Subsequently,objectivesandimplementationmeasures

aredefinedtogetherwiththesupervisor.

In2006,employeesspentanaverageof13hoursonfurthertraining.Aspartof

afurthertrainingagreement,Geberitalsosupportsemployeesstartingsupple-

mentarytrainingorpost-graduatestudies.Theaimisthecreationofacommon

basisforlong-termcooperation.Managershavetheopportunityoftakingpart

inspeciallytailoredmanagementtrainingcourses.

Employees 2006 by countries

Germany(38%)

Switzerland(19%)

China(11%)

Austria(8%)

USA(5%)

UnitedKingdom(4%)

Slovenia(4%)

Italy(2%)

Denmark(1%)

Others(8%)


Talentednext-generationmanagersareencouragedandcanpassthrougha

specificManagementDevelopmentProgramaspreparationforpositionsof

responsibilityinmiddleandseniormanagement.

Motivated employees thanks to good working conditions

Regulareducationandfurthertrainingcontributetowardshealthandsafetyat

theplaceofwork.Theverylowabsenteeismrateof2.6%throughouttheGroup

demonstratesthisinimpressivemanner.Intheperiodunderreview,just0.1%

wasaccountedforbyaccidentsatwork;theremaining2.5%wasabsenteeism

duetoillness.Eventhispercentageisverylowatmanylocationsthanksto

targetedhealthprecautions(dietaryadvising,anti-smokingtraining,sportspro-

grams,etc.).

Forallemployees,safetyattheplaceofworkincludesbeingsecureinthe

knowledgethattheirremunerationisfairandinlinewithmarketlevels.Localreg-

ulationsonminimumwagesarerespected.In2006,expenditureonwages

andsocialbenefitstotaledCHF442.3million.Shareparticipationprogramsat

attractiveconditionsenableemployeestoparticipateintheeconomicsuccess

ofthecompany.

Geberittakesemployeeinterestsseriously.Determiningtheirsatisfactionandtheir

requirementswastheaimoftheGroup-wideemployeesurveycarriedoutin

2004in23countries.Over3,300employeestookpart.Satisfactionwas70%.At

79%,supportforthecorporateobjectives–ascertainedintargetedreplieson

identification,commitmentandbindingtothecompany–waswellabovecom-

parativevaluesforgloballyoperatingcompanies.Variousimprovementmeasures

werederivedfromtheresultsofthesurveyintheindividualcountriesandim-

plemented.ThegoodworkingconditionsatGeberitincludeflexibleworkinghour

models.Thesemakeadecisivecontributiontoemployeesatisfaction,asthey

supportthebalancebetweenprivateandworkinglife.

Theshareoffemaleemployeesisaround30%,inuppermanagement,thisfigure

isjustunder5%.

Slovenian subsidiary celebrates ten years

as a member of Geberit

TheplantinRuše(SI)hasbeenpartofthe

GeberitGroupsince1997.Thecompanyis

amongstthe20largestintheregion.The

numberofemployeeshasdoubledoverthe

pasttenyears.Theplanthasdeveloped

intoafullyintegratedGeberitGrouplocation.

Theintegrationoftheemployeesranpositively

andidentificationwithGeberitishigh.

Employees

Employees 2006 by business process

Production(55.7%)

MarketingandSales(26.3%)

Administration(11.2%)

ResearchandDevelopment(3.4%)

Apprentices(3.4%)

Sales per employee(inthousandsofCHF)

Numberofemployees

Salesperemployee

04 05 06

430

410

390

370

350

330

310

290

5,600

5,500

5,400

5,300

5,200

5,100

5,000

4,900


Adopting an active approach to life after

retirement

InSwitzerland,Geberitoffersallemployeesas

wellastheirpartnersprofessionallyaccom-

paniedworkshopsinpreparationforretirement.

Themainemphasisofthetwo-and-a-half-

dayworkshopsisonchallengingparticipants

toorganizetheirnewlifeinanactiveand

individualmanner.Newideasandpossibilities

areusedtostimulateintellectualvitalityin

theinterestsofdeterminingone’sownlifestyle

awayfromdutiesandtheemployment

market.Geberitassumesallcostsforthis

popularworkshops.

Information and constant dialog

Geberit’seconomicenvironmentisbecomingincreasinglycomplexandischanging

rapidly.Thisdevelopmentisalsoreflectedinthefluctuationquota–despite

highlevelsofemployeesatisfaction,thissharewas11.8%attheendoftheperiod

underreview(includingnaturalturnover,e.g.retirement).

Thismakesforward-thinkingandactiveformulationofchangeprocessesallthe

moreimportantforthelong-termsuccessofthecompany.Open,honestand

clearcommunicationisthebasisforthis.Geberitmakesuseofvariousinternal

andexternalmeansofcommunicationandmaintainsaconstantdialogwith

theemployeesandthelocalemployeerepresentatives.Inaddition,regularinfor-

mationisprovidedoncurrentthemes,trendsandactivitiesthroughelectronic

newsletters,employeemagazines,brochuresaswellasinformationevents.

Therearenoformalregulationsastowhenandhowfrequentlytheemployees

aretobeinformed.Incasesofmajorstructuralchanges,Geberitmakesevery

efforttoinvolvetheemployeesatanearlystage.Thetake-overandsuccessful

integrationoftheGermanMapressGroupin2004providesanexemplaryillus-

trationofthis.Atthetime,around870additionalemployeesjoinedtheapproxi-

mately4,400existingGeberitstaff:amajorchallengeforallthoseinvolvedand

onethatwasmasteredsuccessfully.

WhenpartingwiththenowindependentItaliancompanyDeriplastin2005,Geberit

strivedtoachieveapartnership-likeandsociallyacceptablesolution.Success-

fully:Dismissalswereavoided.Bothcompanies,aswellastheiremployees,are

nowbenefitingfromtheclearfocusontherespectivemarketsegment.

“Sustainability means not

just being applicable once but

on a continuous basis.”

“Working with consideration

for others.”

“Leaving a good and

lasting impression.”

“Training young people

for the future.”

StatementsbyapprenticesatGeberitPottenbrunn(AT)onthekeywordsustainability


Europe Forum as a dialogue platform for

employee representatives

TheGeberitEuropeForum,heldtwiceayear,

offersrepresentativesofthecompanies

presentanopportunityforexchanginginforma-

tion.In2006,forexample,concerninga

surveyonthesubjectofpersonnelandsocial

reporting.Thiswasaboutassessingand

improvingvariousperformancesoftheindivid-

ualcompanies,includingthefieldofemployee

assessment,employeerepresentationor

healthmanagement.

Employees

HeinzAmberger,apprenticessupervisoratGeberitPottenbrunn(AT),hasacquiredexperi-encefromteachingover40apprentices.

Numerousdistinctionsdocumentthecommit-mentofGeberittotraining.In2006,forexam-ple,itwasawardedtheAnton-BenyaPrizeforoutstandingperformancesintheinstructionofapprentices.

You have been involved in

teaching apprentices for eleven

years. What aspect of your work

particularly appeals to you?

Workingwithyoungpeopleisgreat

funanditfillsmewithpridetosee

howournextgenerationcontinues

todevelopfollowingtheperiodof

training–bothprofessionallyand

personally.

What is particularly important to

you in training?

Ourapprenticesarenotunskilled

laborers.Traininghasthehighest

status.Ourtrainingisveryinten-

siveandcompany-related–with

manyinternalandexternaltraining

measuresandworkshops.And

wealsoprovidetheoreticalteaching

inourowntrainingfacilityinaddition

tothevocationalschool.Another

aspectthatisparticularlyimportant

tome,isthatweencourageyoung

peopleinsuchamannerthat

theydevelopintomatureandself-

confidentpersonalities.

How can you support the

development of their personality?

Thebestwayofgettingthrough

toyoungpeopleisviaspecialactivi-

ties,suchasour3-dayoutdoor

workshop.Thisalwayshasadiffer-

enttheme,suchasprevention

ofaddiction,theabilitytoworkina

team,fearandovercomingfear.

Theyoungpeoplecanchoosethe

themethemselves.Followingthe

workshop,theapprenticesreportto

thecompanymanagementon

theirexperiencesintheformofa

presentation.

You offer training in professions

such as electrician or plastics

technician. Can women also be-

come apprentices?

25%ofourapprenticesinPotten-

brunnarefemale;inthisrespect,it

shouldnotbeforgottenthatweonly

offertrainingintechnicalprofes-

sions.Forourselectionprocedure,

thecolorofaperson’sskin,their

nationalityorgenderareofnorele-

vance.Importantforusisthatwe

areabletorecruitcapableyoung

peoplewhomwewishtoprovide

withgoodtrainingandsubsequently

makebestuseofinourcompany.

Nevertheless,wesupportmeasures

suchastheGirls’Day,anannual

Austrianeventinwhichrenowned

companiesofferyoungwomenan

insightintotechnicalmatters.



Togetherwithexternalpartnersinuniversitiesandbusiness,theteamheadedby

AbdullahÖngöreniscarryingoutbasicresearchinthefieldsoffluidtechnology,structural

mechanics,acousticsandmeasuringtechnology.Hisdepartmentprovidesthelatest

technologiesandmethodsinordertoshortendevelopmenttimesandoptimizetheprod-

ucts.Ecologicalnecessityandthetrendtowardsreducedwaterconsumptionaretaken

seriously.ForAbdullahÖngören,makingproductsmoreefficientalwaysmeansdesigning

themforlowerconsumption.Withnew,virtualdevelopmentmethods,histeamconstantly

keepsacoupleofstepsaheadofthecompetitionasfarasthisthemeisconcerned.

“Smaller,moreefficientandquieterproductsaretheobjective.”AbdullahÖngören,HeadBasicSanitaryTechnology,GeberitJona(CH)

Innovation factory for sustainable products

Structured process and the latest methods as a basis

Saving water remains a central theme

New products fully focused on hygiene

Innovative ideas, committed employees, pronounced core competences and

well thought-out work processes make Geberit products what they are: highly

developed, reliable, lasting and optimally coordinated sanitary and piping sys-

tems. Environmental aspects are taken into consideration as early as the initial

phase of the development process. Here, Geberit sets standards for sparing use

of the resource water, with simultaneous highest comfort and maximum hygiene.

Market-oriented further development thanks to the innovation process

development

Being European market leader in plumbing technology is a distinction, achievement

and obligation at the same time. To enable Geberit to offer its customers highly

developed quality products year after year, work is continuously being carried out

on new developments and on the optimization of existing systems. This is

why the company has been practicing applied research and development for de-

cades. Many impulses come direct from the customer. The marketing and sales

experts as well as product managers monitor and analyze developments in

the markets. They identify the latest trends, evaluate them and prepare project

proposals.

Geberit operates its own “innovation factory”. Following on from the preparation

of the idea, the project managers compile interdisciplinary teams. As a result,

product managers, engineers, application engineers and technical designers, as

well as experts from procurement, marketing, sales, and environmental and

quality management, work together towards the successful realization of a proj-

ect. All new developments are prepared and optimized on the basis of the

structured “Innovation Process Development” (IPD). This ensures that optimum

use is made of the creative potential of the ideas and that the development

activities are tailored to the requirements of the market. The IPD consists of six

phases: preparation of the idea, concept, development, implementation, opti-

mization and marketing. The know-how of numerous departments and laborato-

ries as well as – if required – of external partners is incorporated.

Product development

Innovation Process Development (IPD)

Preparation of ideas

Concept

Development

Implementation

Optimization

Marketing

Geberit Sustainability Report 2007 29

·

·

·

50 years in three months

IntheGeberitplumbinglaboratory,aboveall

newlydevelopedproductsaretestedright

downtothefinaldetail.Forthistask,Geberit

hasdevelopedtestsoftware,temperature

cycleandlong-timetestingdevicesaswellas

devicesforcharacterizingsusceptibilityto

contaminationanddeposits.Stabilityunder

load,longevityandsealintegrityareatthe

forefrontofthesetests.Thecisternsaresub-

jectedtoalong-timetestinvolvingatleast

200,000flushesinthreemonths.Thiscorre-

spondstoaproductlifeofupto50years.

Eco-Design as the key to environmentally friendly products

Asarule,environmentalimpactdoesnotresultbychance.Inthedevelopment

process,earlyplanningcanensurethatasenvironmentallyfriendlymaterialsas

possiblearechosen,risksminimizedandhighefficiencyofresourcesachieved.In

concreteterms,so-calledEco-Designworkshopsareheldforallimportantproj-

ectsundertheleadmanagementoftheenvironmentandsustainabilitydepartment.

Theseworkshopsincludeasystematicproductanalysisduringalllifephases,

theinvolvementofstatutoryrequirementsaswellastheanalysisofcompetitor

products.Importantinthisrespectisthepresenceoftheentireprojectteaminclud-

ingrepresentativesofalldisciplines.Theknowledgegainedisincludedinthe

performancespecificationfortheproduct.TheaimofEco-Designistomakeeach

newproductbetterthanitspredecessorintermsofenvironmentalaspects.

The latest development methods as a basis

Geberitproductscanonlybeleadersifweusethelatestresearchmethodsas

wellasthelatestdevelopmentandtestingprocedures.Forexample,weuse:

·computer-assistedsimulationtechnologyinordertobetterunderstandtheflow

behaviorandthustooptimizehydraulics

·anefficientandseries-authenticprototypeconstructionthankstomanufac-

turingprocessessuchas3-Dprinting

·anoptimallyequippedplumbinglaboratorywithcomputer-assistedlong-time

testsofplumbingsystems,soastoensurethetraditionallyhighstrain-bearing

capacityandservicelifeofGeberitproducts

·amodernmaterialslaboratoryinordertotestchemicalandtechnicalattributes,

andtodeveloptailor-madespecialrecipesifrequired

Facilitiessuchastheindustry’sleadingbuildingtechnologyandacousticslabora-

toryensurethattheproductsarestructurallyoptimized,quietandfire-resistant,

andthussafe.Inthelaboratory,itispossible,amongstotherthings,tosimulate

thetransmissionofsoundinamulti-storyresidentialbuilding.Asaresult,itis

possibletotestandimprovenotonlyindividualcomponentsbutalsoentireinstal-

lationandpipingsystemsintermsoftheirnoiseconduct.Inthisway,wecomply

withtheconstantlyrisingneedforpeaceandquietinresidentialpremises.


Continuing the history of success in water saving

TheenvironmentalprinciplescontainedintheGeberitCodeofConductrequire

caringhandlingofwater,energyandotherresources,whichgoesbeyondthe

statutoryrequirements.ThetraditionalstrengthofGeberitproductsintermsof

watersavingshowsbyfarthegreatestleverageeffecthere.Thustherehasbeen

amassivereductionintheamountofwaterconsumedperflush–previously

over14liters.TheGeberitflush-stopmakesitpossibletoregulatetheflushing

volume.Withthedual-flushtechniquewhichhasbeenonthemarketsince

1996,flushingcanbewithalarge(6liters)orasmallquantity(3liters).1-liter

urinalswithelectronicallytriggeredflushingandwater-lessurinalswithodor

traparenewdevelopmentswithpositiveeffectsonwaterconsumptioninevery

respect.

Thehighsignificanceofthesubjectofwatersavingisalsoshownintheproduct

lifecycleassessmentofaDuofixWCelement.Dominantatover90%istheuse

phase,i.e.theconsumptionofwaterthroughflushingoftheWC.Thecalculation

tookaccountofboththeprocessingandthetransportofthewateraswellas

ofdisposalinasewageplant.Consumptionofwaterisquitesimplyalsoconsump-

tionofenergy.ThisiswhyGeberitdevelopmentengineersattachparticular

importancetooptimumwaterconsumptioninflushingsystemsandfaucets.Prod-

uctlifecycleassessmentshavealongtraditionatGeberit.Theyalsoprovide

valuableinformationintermsofimprovementmeasuresforotherproductsand

areanimportantbasisfortheEco-Design.

New products fully adapted to hygiene

Inadditiontowatersavingsofupto30%,electroniccontrolunitsforurinalsen-

abletheconsistentimprovementofhygieneinplumbingareaswhilstatthesame

timeincreasingcomfort.Automaticflushactuationandtouch-freewashbasin

faucetsinpublicWCfacilitiesusedbycountlesspeopleeveryday,areincreas-

inglyindemandandcorrespondinglypopular.Giventhewetenvironment,

electronicsinplumbingtechnologyrequireagreatdealoftechnicalskill.Here,

Geberitdistinguishesitselfthroughitsparticularlyextensiveexperience.

Remote-controlledelectronicsforlavatorytabs,enablingtheservicetechnician

1-liter urinals with Geberit technology

Hygieneandsecurityoffunctionatlowcosts

andwithlowmaintenanceareindemand

forsemi-publicandpublicplumbingareas.The

1-literurinalflushingtechnologyfromGeberit

guaranteeslowoperatingcoststhankstomini-

mumwaterconsumptionandatthesame

time,highhygienethroughflushingwithwater

followingeachuse.The1-litercompacturinal

offeredbyceramicspartnersissuitablefor

installationswithhighuserfrequencies,and

fulfilsallrequirementsintermsofprotection

againstvandalismandcleanliness.

Productdevelopment

Environmental impact of cisterns by life phase

Use(94.0%)

Rawmaterial(5.0%)

Production(0.6%)

Disposal(0.4%)


Wonders of fluid technology

Oneofthemostimportantprerequisitesfor

theperfectfunctioningofnewproductsisopti-

mizationintermsoffluidtechnology.The

flowcircuitsaswellasthepressureandspeed

distributionofthewaterareanalyzedusing

computer-assistedsimulationtechniques.The

hydraulicscanbeoptimizedaccordingly.

ThismakesGeberitproductsevenquieterand

moreeconomizingwithregardtowater

consumption,withsimultaneouslylongermain-

tenanceintervalsforthecustomer.

tocommunicatewiththefaucetusingnormalcommerciallyavailablepocket

computers,provideaninsightintothefuture.Physicallyhandicappedpersons

willnodoubtbeparticularlypleasedbytheremotetriggeringoftoiletflushes

fromthesupporthandle.

Inthefieldofdrinkingwaterhygiene,peoplearebecomingincreasinglysensitive

andstandardsstricter.Initsnewlyestablished“DrinkingWaterHygiene”depart-

ment,Geberitexchangesexperienceandinformationwithvariousdivisions

andcountries.Thedepartmentisinclosecontactwiththemarkets,customers,

universitiesandauthorities.Itorganizestrainingmeasures,preparespublica-

tions,initiatesresearchanddevelopmentprojectsandadvisesindevelopment

matters.

Safeguarding innovation in the long term

Geberitproductsarenotlaunchedontothemarketuntiltheyhavebeentested

forallpossiblefunctionalandmaterialattributes,fulfillnormal,nationalstandards

forthecountryconcernedandhavereceivedallapprovalsrequired.Theinter-

nationallyoperatingStandards/Patents/Approvalsdepartmentappliesforthe

protectedprivilegesofnewproductsandtechnicalinnovations,monitorscom-

petitionand,ifnecessary,assertsGeberit’sinterestsinlegalproceedings.It

accompaniesproductdevelopmentinallphasesoftheproject,andcanallow

country-specificrequirementstobeincorporatedintotheproductdevelopment

atanearlystagethroughitsactiveinvolvementinnational,Europeanandinter-

nationalstandardsbodies.Eachyear,Geberitappliesforpatentsforanaverage

ofaround20products,andmonitorsworldwidepatentactivitiesinthefieldof

plumbingtechnologywithgreatinterest.Thisensuresthatdevelopmenttenden-

ciesandtrendsarealwaysidentifiedatanearlystage,analyzedandtakenup,

andtheinnovationfactorykeptfullyinformed.


New products promote drinking water

hygiene

Longperiodsinpipingsystemswithoutmove-

mentcanresultinstandingdrinkingwater

becomingahygieneproblem.Duringthefilling

ofdrinkingwatersupplypipes,bacteriacan

besweptinwhichcanmultiplysignificantlyin

theperiodupuntilinitialuse.Geberitoffers

newproductstosolvetheseproblems:anauto-

matichygieneflushsystemthatflushesduring

idleperiodsthusreplacingthewaterinthe

pipes,andaGeberithygienefilterforbacteria-

freefillingandpressuretestingofnewinstalla-

tions.

Productdevelopment

DanielIrányifromTribecraftworkedwithGeberitontheTNG–ToiletNewGeneration–project.

TribecraftAGinZurich(CH)isaspin-offcompanyfromtheSwissFederalInsituteofTechnology(ETH)andspecializesintheplanning,designandengineeringofproducts.

The toilet of the future – what

could it look like?

Theprototypedevelopedreveals

possibletrendsinwatersavingand

flexibility:Featureswerenewflush-

ingtechnologyenablingwatercon-

sumptionoflessthan1literper

flush.Thetoiletcouldbeconnected

toanyexistingdrainagepipe.On

theonehand,thispermitsflexible

installation,i.e.youcanplacethe

toiletwhereveryoulike;ontheother

hand,italsoopensupadditional

opportunitiesintermsofarchitecture.

Does a project of this nature

require new points of reference

for development?

Duringtheinterdisciplinarycoopera-

tionbetweenTribecraft,theSwiss

FederalInstituteofTechnology(ETH)

andGeberit,weridourselves

completelyofnormalpracticalcon-

straints.Wedefinedtheareas

humanity,technologyandenviron-

ment,allofwhichweexamined

profoundly.Astudyoftheintercul-

turaluseoftoiletsattheInstitute

forEthnologyinBernerevealed

interestingaspectsofworldwide

customsandtaboos.

How does Geberit benefit

from such a long-term planned

project?

Today,areasofthefuturearebeing

openeduponathemeandknowl-

edge-basedbasis.Aprojectlikethis

isanimportantbuildingblockfor

afuture-orientedproductstrategy.

Innovativesolutionsarenotpossible

withoutchallenges.Geberithas

thishealthyattitudeofthinkinginan

uprightandlong-termmanner.

How can your results be used

now?

TheprototypeinstalledatGeberit

hasrevealedthatthetechnical

conceptfunctionssmoothlyeven

overanextendedperiod.There

wereinformativeindicationscon-

cerningpsychologicalandergo-

nomicaspectsoftheuseoftoilets.

Nevertheless,thecentralfactor

isthatelementsoftheTNGarealso

suitableformanyothersystem

approaches,forexampleurinal

applications.



Precision,speedandhighlyinnovativeproductioncharacterizethecomplexmanufacture

ofMeplamultilayerpipesinGivisiez.Thankstotheoptimizationofthehotwatercircuit,

therehasbeenasignificantreductioninenergyandwaterconsumptioninrecentyears.The

investmentrequiredforthiswashigh;however,itwasamortizedafterjusttwoyears.

MichelPittetalsoinvestswillinglyinemployeetrainingonsafetyandenvironmentalprotec-

tion.ThishasnotonlymadeGeberitGivisiezagoodexamplefortheSwissNational

AccidentInsuranceFund(Suva)buthasalsomadeitpossibletoincreasetheprofitability

oftheproduction.

“Investmentsinthesavingofwater,electricityandgasareamortizedquickly.”MichelPittet,ManagingDirectorGeberitProductionPlant,Givisiez(CH)

Responsiblemanagementofproductionandprocurement

Eco-efficiencyimprovedbyanaverageof9%inthelastthreeyears

Waterconsumptionreducedbytotally35%inthelastthreeyears

Riskmanagementforsupplierstakesaccountofsustainabilityaspects

InitsCodeofConduct,Geberitsetsoutthatenvironmentalaspectsflowintoall

decision-makingprocessesandactivities,andthattheenvironmentalper-

formanceisconstantlyimproved.Correspondingmeasuresinproductionand

procurementshowthatthestatutoryrequirementsarefrequentlyexceeded

inthisrespect.

Practiced environmental management shows success

AtGeberit,therehasbeenatraditionofenvironmentalmanagementsincethe

earlynineties.Thecentralenvironmentandsustainabilitydepartmentplays

animportantroleinthisrespectandcontributestowardsmakingdecisionmakers

sensitivetotheseaspects.Thepronouncedenvironmentalawarenessresults

inconstantimprovementsineco-efficiencyaswellasminimizingcostsandrisks.

Thebasisforthisisacomprehensiveenvironmentalmanagementsystem.

Sincethebeginningof2007,GeberithasbeeninpossessionofacombinedGroup

qualityandenvironmentcertificateasperISO9001andISO14001.Asofthe

endof2006,elevenEuropeanproductionlocationswerecertifiedforthefirsttime

asperISO14001;theplantsintheUSAandChinaaretofollowbytheendof

2008.

Measurementandcontroloftheenvironmentalimpacttakestheformoftheannual

corporateeco-balance.Animportantillustrationofperformanceinthisrespect

isthecalculationoftheenvironmentalimpactwhichcoversall17productionloca-

tionsworldwideandthus85%ofthegrossvalueadded.Theenvironmental

impactiscalculatedineco-pointsinaccordancewiththeSwissEcologicalScar-

cityMethod(2006version).Intheperiod2004to2006,theabsoluteenviron-

mentalimpactfellslightlyadjustedbyacquisitions.Thesameperiodsawacon-

siderableincreaseineconomicperformanceandvalueadded.Asaresult,the

environmentalimpactpervalueaddedunit(eco-efficiency)hasincreasedby9%

p.a.overthelastthreeyears.Thisisabovethe5%targetstrivenfor.

Productionandprocurement

Development environmental impact andeco-efficiency 2004–2006

Environmentalimpact Eco-efficiency

Environmentalimpact

Eco-efficiency

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

140

130

120

110

100

90

80

70

60

5004 05 06


·

·

·

Combined Group Certificate for Quality and Environment as of 2007

Eversincetheeighties,Geberithasbeenconcerningitselfwithecologicalmatters,andthemajorplants

wereenvironmentallycertifiedroughlytenyearsago.In2002,theGroupwithdrewfromre-certification

asthecost-benefitratiowasnolongerappropriateandthecertificationcompanieswereveryinflexible.

Today,thecertificationcompanieshavechangedsignificantly.Theyareincreasinglyplacingthemain

emphasisoftheirworkonthebenefitsfortheircustomersandnowofferthepossibilityofobtainingGroup

certificates.TheGroupcertificateenablesamoreefficientandthusmorecost-favorableprocedure.

ThisiswhythedecisionwastakentointroducethecombinedGroupcertificateQuality(ISO9001:2000)

andEnvironment(ISO14001:2004)worldwideatGeberitasofthebeginningof2007.Companies

benefitfromthereducedexternalauditingburdenresultingfromthenew3-yearcycle.Thisaffectsall

productionplantsandthecentralmanagementcompany.

Increased energy efficiency as the key to environmental performance

Atjustunder90%oftheenvironmentalimpact,energyconsumptionisofcentral

importanceforproduction.Themainenergyconsumediselectricityforthe

manufactureofsanitaryandpipingsystemsfromplasticmaterials.Ininjection

molding,blowingandextrusionprocesses,plasticgranulesismelteddown,

broughttothedesiredshapeandsubsequentlycooled.Absoluteconsumption

ofelectricityfellslightlyintheperiod2004to2006adjustedbyacquisitions.

Electricityconsumptionpervalueaddedunitwasevenreducedbytotally23%in

thesameperiod.Thisshowsthesuccessofsystematicenergymanagement

whichrelievestheenvironmentandsavescostsatthesametime.

Importantmeasuresincludeincreasingtheefficiencyofproductionfacilities,the

optimizationofcoolingplantsthroughtheuseofnaturalambientcold(free

cooling),improveduseofwasteheat(heatrecovery)aswellasthecarefuluseof

compressedair.Sofar,renewableenergieshavebeenusedmainlywithin

theframeworkoftheelectricitymixboughtin.Theaimistoachieveaconscious

expansionoftheirshareinfuture.Intermsoftherelativelylowconsumption

ofcombustibles,theaimisabovealltoimprovetheinsulationofthebuildings

andtoreplaceheatingoilbymoreenvironmentallyfriendlynaturalgas.Fuel

isusedbythecompany’sownfleetofvehicles.Sincethemiddleof2005,diesel

vehicleshavebeenpurchasedexclusivelywithparticulatefilters.

AtGeberit,emissionsofgreenhousegasesresultmainlyfromtheconsumption

ofenergyandaremeasuredinCO2equivalents.Theemissionsofgreenhouse

gasespervalueaddedunitfellby8%p.a.intheperiod2004to2006.By2009,

theaimistoachieveacumulative15%reductioncomparedwith2006.The

measuresfortheimplementationofthisobjectivearebasedonthethreepillars

“energysaving”,“increaseenergyefficiency”andthe“targetedexpansionof

theshareofrenewableenergycarriers”.InSwitzerland,Geberitisworkingwith

theBusinessEnergyAgencyandhasalsoobtainedcorrespondingCO2certifi-

cates.

Distribution of environmental impact 2006

Electricity(74%)

Disposal(9%)

Combustibles(8%)

Fuels(7%)

Processes(1%)

Water(1%)

Energy consumption

2006 2005 2004

Electricity(GWh) 113 112 115

Heatingoilextralight(t) 212 398 452

Naturalgas(m3) 4,786,443 4,910,388 4,810,222

Gasoline(l) 325,578 404,071 571,961

Diesel(l) 835,122 872,178 822,323


Efficient management of substances and materials

Generallyspeaking,theenvironmentalrisksemanatingfromtheproductspro-

ducedbyGeberitandthecorrespondingproductionprocessesareonthe

lowside.Asimportantenvironmentalaspectsaretakenintoconsiderationas

earlyasthedevelopmentphase,itispossibletokeeptheshareofenviron-

mentallyharmfulmaterialslow.Additionally,comprehensivemanagementof

hazardoussubstancesensuresthatproductionstaffarenotexposedtoany

unnecessaryrisks.

Around75%ofthetotalof12,000metrictonsofwastein2006floweddirectly

orindirectlyintorecyclingprocesses.Despitethis,wasteisthesecondlargest

sourceofenvironmentalimpactatGeberit.Futuremeasureswillfocusaboveall

onthefurtherreductionofmixedwasteandhazardouswaste.Theconsumption

offreshwaterandtherelatedwastewaterareoflowimportance.Nevertheless,

Geberithasanimportantrole-modelfunctionhere.Thankstotheintroductionof

closedwatercircuitsandthereplacementofdirectwatercooling,therehas

beenareductionofaround35%inthetotalconsumptionoffreshwaterinthe

period2004to2006.

Reliable and environmentally friendly logistics

Withitsnewlogisticsstrategy,GeberitisaimingatGroup-wideoptimization

oftransportroutes.Almost50%ofcustomerdeliveriesaremadefromthehighly

automatedlogisticscenterinPfullendorf(DE).Additionallogisticsservicesare

providedfromtheplantsLangenfeld(DE),Jona(CH),Pottenbrunn(AT),Villadose

(IT),Aylesford(GB)andRuše(SI).InChinaandNorthAmerica,thelocalstruc-

turesandthegloballinkwillbereviewedandoptimizedin2007aspartofthe

strategicorientation.Variousmeasureswillbetakentoreduceenvironmental

impactfromlogistics:environmentallyfriendlyvehiclesasarequirementonfreight

forwarders,bundlingoffreight,preparationofoptimumtourplansaswellas

theavoidanceofincorrectdeliveries.

Water and energy savings thanks to

process optimization

Meplamultilayerpipesaremanufacturedat

theGivisiez(CH)plant.Thefinalprocessstage

comprisestheinterlinkingofthepipesinan

autoclave.Thisiscarriedoutunderpressure

withheatingtoaround110degreesCelsius.

Previously,thewaterhadtobeletoffaftereach

passage.Theinstallationofaspecialfilter

nowmakesitpossibletorecyclethewaterfully.

Waterconsumptionpermeterofpipeis

reducedby60%andenergyconsumptionby

25%.Asaresult,ithasbeenpossibleto

reduceannualwaterconsumptionby30,000 m3.


Consumption of materials

(inmetrictons) 2006 2005 2004

Rawmaterialplastics 59,880 68,459 62,779

Rawmaterialmetal 57,491 44,383 55,639

Otherrawmaterials 1,016 1,241 n.a.

Semi-finishedproducts 29,049 24,610 21,888

Finishedproducts 56,326 45,807 30,401

Total consump-tion of materials 203,762 184,500 170,707

Waste

(inmetrictons) 2006 2005 2004

Incineration 779 675 751

Incinerationofhazardouswaste 218 173 127

Recyclingofhazardouswaste 1,447 1,312 896

Inertwastelandfill 523 314 491

Mixedwastelandfill 1,315 1,494 1,710

Recycling 7,716 7,635 7,118

Total waste 11,998 11,604 11,092

2004 2005 2006

300,000

250,000

200,000

150,000

100,000

50,000

0

Water consumption 2004–2006(inm3)

Freshwater

Wastewater


Environmentally friendly logistics with

the railways

InAustria,GeberitHuterissendingalarge

partofproductdeliveriesbyrail.Over3,600

deliveriesor1,300metrictonsaresenteach

yearviatheenvironmentallyfriendlyRailCargo

Austria.Thisformoftransportdoesnotresult

inlongerdeliverytimes.Theefficientlogistics

systemstartswiththetransportorderinthe

morning.Deliveryandfinedistributiontothe

respectivelogisticscenterarecarriedoutby

truck,themaintransportstretchistraveledat

nightbyrail.

Western Europe as the dominant procurement market

Theprocurementofrawmaterials,semi-finishedandfinishedproductswitha

worldwidepurchasingvalueofCHF676millionin2006isofgreatimportancefor

Geberit.WesternEuropeisbyfarthemostimportantprocurementmarket

withashareofaround90%.Nevertheless,thesignificanceofothermarketsis

increasing.Theworldwideprocurementpolicyhasbeendeterminedwithin

theframeworkofatotalcostapproachandtakingaccountofrisksidentified.

CurrenttrendsgiverisetoexpectationsofanincreaseinprocurementfromAsia.

High requirements on suppliers

Procurementisbasedonproveneconomicguidelines.Forexample,theriskof

reciprocaldependencybetweensupplierandGeberitshouldbekeptaslow

aspossible.IfGeberitcontributesmorethan30%tothesupplier’svalueadded,

farther-reachingcontractualmeasuresmustbeagreedinordertoprotect

bothsides.Geberitalsohashighrequirementsintermsofenvironmentaland

socialconduct.Thequalityrequirementshaveapositiveeffectonsustainability.

Theyrequirethoroughcontrolofprocessesbythesuppliers,aswellaswell-

trainedandqualifiedemployees.Theriskofpoorworkingconditionsorchildlabor

isthereforerelativelylow.Nevertheless,nothingislefttochance.Since2005,

Geberithasintroducedsystematicriskmanagementforsuppliersthatalso

assessessustainabilityrisks(includingrespectforhumanrights).Thisisimposed

onallnewsuppliersand,periodically,onthe25mostimportantsuppliersper

productgroup.Cooperationorsupplycontractsincludethebindingintegration

ofsocialandenvironmentalaspects.Inaddition,theintroductionofaCode

ofConductespeciallyforsuppliersisplannedfor2007.Buyerswillbegivencor-

respondingtrainingandthusmadeincreasinglysensitivetoenvironmental,

socialandqualityaspects.Theinternalcorporateauditdepartmentchecksthe

processinordertokeeprisksatalowlevel,particularlyinnewmarkets.

Purchasing value 2006 by region

WesternEurope(90%)

EasternEurope(3%)

America(3%)

Asia(3%)

Others(1%)



Environmental and social objectives in

China

Thehighenvironmentalandsocialstandards

ofGeberitalsoapplyforcontractpartners

worldwide.Thisincludes,forexample,aman-

ufactureroffaucetsproducinginChina.As

acontractpartner,thiscompanyhasmadethe

commitmenttoprotectitsemployeesfrom

discriminationandabuseofthelaw,aswellas

torejectchildlabor.Thedeliveryrelationmust

notbeattheexpenseofsustainablesocialand

ecologicaldevelopment.

ThomasHübnerreportsonthelong-standingsupplierrelationwithGeberit.

HübnerGmbHisamedium-sizedcompanyinMarktoberdorf(DE)withextensiveexperienceinplasticsgalvanizing.

What form does the cooperation

with Geberit take?

Geberithasbeenacustomerof

ourssince1972.Wecooperatein

thefieldofgalvanizedplasticparts

suchasactuatorplates,outletsand

traps.Inconcreteterms,this

involvesthejointdevelopment,the

productionoftheinjectionmolding

tool,theactualproductionthrough

galvanizingoftherawpartthrough

tolaserinscription,assemblyand

packingforaspecificplasticpart.

What is your recipe for success

as regards long-term business

relations?

Themotivationforallofusisvery

easilyexplained:Workingtogether

towardsagoalandpullingtogether

isfun.Thusitisthat,asregardsthe

cooperationwithGeberit,wedonot

considerourselvesashavingaclas-

sicalsupplier-customerrelation;

rather,weregardourselvesasbeing

“ateyelevel”withthecustomerina

partnership-likesense.Forexample,

wealsocarryoutajointannual

reviewofthefinalcontrolssothatno

artificialwasteisgenerated.

Environmentally friendly

galvanic processes – is that at

all possible?

Yes,butitisaprocess.Ournew

plasticgalvanizingprocessthatwe

havebeenusingsince2003,

wasamajorstepforward.Thisuses

anoticeablymoreenvironmentally

friendlyprocess.Thankstothe

shorterprocess,harmfulchemicals

thataremoredifficulttotreatin

wastewaterareavoided.Theuseof

thisprocesswasalsorecom-

mendedandwelcomedbyGeberit.

Currently,forexample,wearemak-

ingjointattemptstoswitchfrom

problematic,hexavalentchrometo

moreenvironmentallyfriendly

chrome.Thisalsobenefitsindustrial

safety.

Are environmental audits by your

customers actually a help?

Yes,forustheyprovideanimpor-

tantinsightbyanoutsideparty

whichmakesiteasiertorecognize

opportunitiesforimprovement.

Weobtainedgoodimpulsesabove

allintermsofriskmanagement.

Theseenabledustoderivedirect

measures.



TheBalmFoundationisafacilityformentallyhandicappedpeople,andperformsassembly

andpackingworkforGeberitasaprofit-orientedindustrialpartner.Theworkisnotsimplyjust

anoccupationforthehandicappedpeople;italsofulfilsthehighrequirementsintermsof

theefficientprocessingofaround250differentGeberitarticles.Geberitprovidesandmaintains

themachinesanddevicesrequired.ForKurtGüttinger,thecooperationwithGeberitis

characterizedbygoodcommunicationandlong-termpartnership.Ifaproductisdiscontinued

byGeberit,theBalmFoundationfrequentlyobtainsthecontractforthesuccessorproduct.

“Forover40years,Geberithasbeenenablingourspecialneedsemployeestoexperienceameaningfuleverydayworkinglife.”KurtGüttinger,ManageroftheIndustrialWorkshopoftheBalmFoundation,Jona(CH)

Socialcommitment

Clearcriteriaforsocialcommitment

DonationsandcontributionsofCHF8.8millionin2004–2006

Anti-corruptionmeasuresstrengthened

Geberitwishestopromotequalityoflifethroughinnovativeproducts.Innovation

andqualityoflifearethereforealsoofcentralimportanceforthecompany’s

socialcommitment.ForGeberit,highethicalstandardsareamatterofcourse.

Focus on innovation and access to basic plumbing facilities

GeberitmadedonationsandcontributionstotalingCHF8.8millionin2004

to2006.Inaddition,facilitiesforhandicappedpersonsandthelong-termunem-

ployedwereawardedorders(simpleassemblyandpackingwork)ofaround

CHF8million.DonationsofCHF1.9millionweremadein2006,amongstother

thingsformaintainingSwitzerland’sinnovativestrengththroughcontributions

totheETHZurichFoundation.InRapperswil-Jona(CH),thecompany’shead-

quarters,asubstantialcontributionwaspaidtowardsexpansionoftheindoorice

arena.Theaimofthisinvolvementistopromoteup-and-comingsportingtalent.

AtGeberit,thereisatraditionoffinancial,materialanddirectsupportoflocal

initiativesaswellasofassociationsandprojectsatthelocations.Whenitcomes

tomajorinternationalaidprojects,Geberitattachesimportanceaboveallto

ensuringthatthecombinationoffinancialsupport,donationsofmaterialandthe

transferofknow-howguaranteesasustainedeffectwiththemaximumbenefit

forthoseconcerned.Examplesofthisare:

·reconstructionofaschoolfor400orphanedchildreninBandaAceh,Indonesia,

destroyedbytheTsunami

·freematerialfortheproductionofsimplebuteffectivewaterfiltersforthepopu-

lationinVietnam

·buildingofaccommodationforaround400femaleclothing-factoryemployees

inCambodia:planningoftheentireplumbingfacilities,financing,supplyof

materialandtraining

Formanyyears,GeberithasalsobeenworkingwiththeGermanenvironmental

organizationBUND(FederalSectionBaden-Württemberg)forresponsible

handlingofwater(www.ja-zum-wasser.de).Throughallofthesecommitments,

Socialcommitment


·

·

·

Waste water tower for the Beijing

University of Technology

SavingwaterisanimportanttopicinChina.

Nevertheless,usinglesswatercreatesincreased

demandsonhydraulicsindrainagesystems.

Thewastewatertower,builtwiththefinancial

supportofGeberit,fulfilstheroleoftraining

futureengineersinthefieldofmodernwaste

watertechnology.Atthesametime,the

UniversityofBeijingalsousesthe8-meter-high

and5-meter-widedemonstrationobjectfor

scientificexchange.

Geberitwishestomakeapositivecontributiontosociety,andalsoreceives

excitingimpulsesforinnovationsandnewbusinessideas.Thesecommitments

alsohaveapositiveeffectonemployeeloyalty.Clearcriteriahavebeendrawn

upforfurtherfocusingofthesocialcommitment.Centralcriteriainthisrespect

areproximitytoplumbingtechnologyandtotheGeberitculture,internationalori-

entationaswellassupportfortheUnitedNationsmillenniumdevelopmentgoals

concerningglobalaccesstocleandrinkingwaterandfundamentalplumbing

facilities.Wearecurrentlysearchingforamainpartnerforalong-termcoopera-

tionarrangement.Alldonationsandrelatedcommitmentsareneutralfroma

partypoliticalpointofview.Geberitmakesnosignificantdonationstopartiesor

politicians,usuallymakesnopoliticalstatementsanddoesnotinvolveitselfin

politicallobbying.

A fair partner with high ethical standards

ForGeberit,faircompetitionthroughouttheworldisamatterofcourse.Price

agreements,otherformsofcartelsorothercompetition-distortingactivitiesare

rejected.Thecompanyhasneverbeenthesubjectofsignificantinvestigations

concerninganti-competitivebehaviorand,asanactivememberoftheinterna-

tionalorganizationTransparency,iscommittedtohighstandardsincombating

corruption.Auditingoftheproductionplantsandsalescompaniesbytheinternal

auditdepartmenttakesaccountofcorruptionaspects.IntheeventofTranspar-

encyindicatinganincreasedriskofcorruptionforacountry,thecompanycon-

cernedissubjectedtoaparticularlyintensiveaudit.In2006,acaseofcorruption

wasdiscoveredinSouthKoreaandledtotheinstantdismissaloftheemployee

concerned.ThenewGeberitCodeofConductcontainsclearrulingsonthe

preventionofcorruptionandonrespectforhumanrights.Allemployeesarein-

formedoftheCodeandobligedtoadheretoit.


Reconstruction of a school for 400

orphaned children following the Tsunami

IncooperationwiththeSwissRedCross,

Geberitparticipatedinthereconstructionofa

schoolfor400orphanedchildreninBanda

Aceh,Indonesia.Geberitassumedthefull

costsforallplumbingfacilitiesaswellasproject

planningandtrainingofthecraftsmenonsite.

InJanuary2007,aGeberitteamfromSinga-

poretravelledespeciallyforcorresponding

training.Asaresult,thepopulationaffectedcan

benefitfullyfromthecorecompetencesof

Geberitandsignificantlyimproveitsqualityof

life.

HeidiBucher,HeadofMarketingCommuni-cationatGeberit,spentaweekworkingintheSteinhofnursinghomeinLucerne(CH).

Today,socialcompetenceonthepartofman-agersisingreaterdemandthanever.The“SeitenWechsel”(Changeofsides)teachingprogramoftheSwissNon-Profit-MakingSociety,supportedbyGeberit,offersthepos-sibilityoffurtherdevelopingone’sownknowl-edgeandcapabilitiesinthisfieldandofgainingvaluableexperienceinasocialinstitution.

What form did your work in the

nursing home take?

Igainedaninsightintoverydiffering

areasofwork.Forexample,with

thedailyhealthreportofthehome

residentsorbyhelpingwiththe

preparationofmedicine.Apleasant

aspectofmyworkwastalkingto

thehomeresidents,modelingor

accompanyingthemonavisittoan

exhibition.

What aspect of your work in the

nursing home created a particular

impression on you?

Thedailyworkisaboutpeopleand

theirphysicalandmentalconstitu-

tion.Ifthehomeisanurseshort,

thereisanimmediateneedfora

replacement,asthecarecannotbe

postponedfordays.Thismadeit

cleartomehowunexpectedlysick-

nessescanoccur.Ontheother

hand,therewereimpressiveand

motivatingmeetingswithhomeresi-

dentsagedover80.Thatmakes

youthinkmoreaboutage.

What is your conclusion?

Thisweekwasanenrichmentfrom

apersonalpointofview.Igained

additionalunderstandingofand

respectforfellowhumanbeings

whosefrailtydoesnotmeanhaving

tosacrificeintellectualpresence,

orwhocanstillbeinterestingpersons

evenfollowingrepeatedaddiction

toalcohol.Howspecificcaretech-

niques–forexampleactivationther-

apiesorbodyhygiene–canstimu-

latethelifeofthoseincareand

facilitatemattersforthecarers,was

somethingthatimpressedme.

And compared with your other

work?

Foronceitwasnotaboutcomparing

salesfigures.Itwasabouttaking

pleasureintheemotionalandphysi-

calwell-beingofpeople.Itwasnice

alsotohavetimeforobservations.

Iamcertainthattheexperience

gainedwillflowintomyfuturework-

inglifeinavarietyofways.This

couldtaketheformofquestioning

prejudices,pursuingunusualsolu-

tionsorlisteningmoreprofoundly.

Socialcommitment


CorporateGovernance

Geberitpracticescleardecision-makingprocessesandapolicyoftransparent

information,includinginparticularasregardsCorporateGovernance.This

ensuresthatthecompanyismanagedwithalong-termorientationandthatthe

interestsofshareholdersaresafeguarded.

AnextensiveillustrationoftheCorporateGovernanceinaccordancewiththe

correspondingguidelinesoftheSwissStockExchange(SWX)isincludedin

theannualreport.Atthispoint,weshallthereforerestrictourselvestoselected

aspectsconcerningresponsible,sustainablecorporatemanagement.

Clear rules on management and control mechanisms

TheBoardofDirectorsdeterminesthestrategicobjectivesandthegeneralfunds

forachievingthese,anddecidesonmajorbusinesstransactions.TheBoardof

Directorsismadeupofsixmembers,noneofwhichisinvolvedinoperative

management.Asof31.12.2006,GünterF.KelmwasChairmanandKurtE.Feller

ViceChairman.TheBoardofDirectorshasformedtwocommittees.ThePer-

sonnelCommitteepreparesproposalsconcerninghumanresourcesdecisions,

remunerationmodelsaswellasconcerningtheannualremunerationofthe

BoardofDirectorsandGroupManagement,andsubmitsthesetothefullBoard

ofDirectors.ThecommitteeismadeupofthreemembersoftheBoardof

Directors,withtheViceChairmanasChairman.TheAuditCommitteeistheupper-

mostsupervisionbodyforinternalandexternalaudits,andmonitorsfinancial

reporting.AllmembersoftheBoardofDirectorsbelongtothiscommittee.The

ViceChairmanistheChairmanoftheCommittee.

TheremunerationoftheBoardofDirectorsispaidintheformofsharesandset

outintransparentformintheannualreport.Inordertoencouragealong-

termorientationofdecisionsoftheBoardofDirectors,thesesharesareblocked

fortwoyears.TheBoardofDirectorsreceivesadiscountontheshareprice

dependentonthesuccessofthecompany;thisdiscountcorrespondstothatof

theemployeeswithintheframeworkoftheemployeeprograms.Theperiodof

officeofamemberoftheBoardofDirectorsisthreeyears,thestatutoryagelimit

is70.Reelectionisonanindividualbasisandisstaggered.Therearenocross

interests–i.e.reciprocalseatsonboardsofdirectors.

Participatory rights of the shareholders

PersonsenteredintheshareregisterofGeberitAGasashareholderwithavoting

rightareentitledtovote.Treasurysharesdonotentitletheholdertovote.


CorporateGovernance

Onapplicationandagainstevidenceofacquisition,personsacquiringsharesare

enteredintheshareregisterasashareholderwithavotingright,provided

theyissueanexplicitdeclarationthatthesharesareheldintheirownnameand

fortheirownaccount.Theentryofsharesheldbynomineesisrestrictedas

setoutindetailintheannualreport.

TheGeneralMeetingisconvenedbytheBoardofDirectorsatthelatest20days

beforethedateofthemeeting.Thearticlesofincorporationdonotincludeany

rulesonparticipationthatdifferfromthelaw.TheGeneralMeetingcanonlypass

resolutionsconcerningmattersindicatedatthetimeofconvening.Excepted

fromthisareapplicationsfortheconveningofanExtraordinaryGeneralMeeting

orfortheperformanceofaspecialaudit.Shareholdersrepresentingshares

withanominalvalueofCHF4,000candemandinclusionofitemsontheagenda.

Thismustbedoneinwritingatleast45daysinadvance.

Group Management responsible for the implementation of the strategic

objectives

Withinthescopeofthelegallimits,theBoardofDirectorshastransferredoperative

managementofthecompanytotheChiefExecutiveOfficer(CEO)–sincethe

beginningof2005AlbertM.Baehny.TheGroupManagementbelowtheCEOis

madeupofafurtherthreememberswhoareresponsibleforthedivisionsSales,

ProductsandFinance.Themaindepartmentsresponsibleforsustainableman-

agementofthecompany–HumanResourcesandEnvironment/Sustainability–

reportdirectlytotheCEO.

TheGroupManagementprovidestheBoardofDirectorswithcomprehensive

informationconcerningfundamentalbusinesstransactions,theongoingcourse

ofbusinessandthefinancialsituationofthecompany.Reportingiscarriedout

ontheoccasionofeachmeetingoftheBoardofDirectorsaswellasinwritten,

monthlyreports.Inaddition,acomprehensivesystemforcontrollingbusiness

riskshasbeenintroducedbyorderoftheBoardofDirectors.

TheremunerationoftheGroupManagementismadeupofafixedsalary,abonus

dependentontheresultsofthecompany,aswellasanindividualperformance

component.Theremunerationissetoutinatransparentmannerintheannual

report.


GlobalReportingInitiative–indexofcontents

ThepreparationofthisreportisbasedontheguidelinesoftheGlobalReporting

Initiative(GRI).GRIhassetitselftheobjectiveofmakingglobalcorporatereport-

ingmoretransparentandmorecomparable(www.globalreporting.org).The

guidelinescoverreportingonoverridingmatterssuchassustainabilityobjectives

andstrategy.Furthermore,managementapproaches(DMA)andnumerous

performanceindicatorsinthefieldsofeconomics(EC),environment(EN),prod-

uctresponsibility(PR),laborpractices(LA),humanrights(HR)andsociety(SO)

shouldbedisclosed.Thefollowingtableincludesalistforspeciallyinterested

partiesconcerningthesectionsofthereportinwhichGRIindicatorsare

describedforGeberit.InformationonfurtherGRIindicatorsforGeberitcanbe

foundinthesustainabilitysectionofthewebsite(www.geberit.com).Thepresent

reportandthedetailedGRIContentIndexintheInternetcovertheGRIguide-

linesinfull,thusfulfillingtheA-levelofthelatestGRIG3guidelines.Thiswas

checkedandapprovedbyGRI.Inthisway,Geberitwishestounderlineitsrole

asaleaderinsustainability.

Section of the report Pages GRI points described

ForewordbytheCEO 2–3 1.1

TheGeberitGroup 4–5 2.1,2.3,2.4,2.5,2.6,2.7,2.8

Ourproductsandourproductknow-how 6–7 2.2

Apracticedcommitmenttosustainability 8–11 1.2,4.8,4.12,4.13,4.14,4.15,4.16,4.17,EC-2,EC-9,DMA-EN,EN-6,

EN-26,DMA-LA,DMA-HR

Amarketleaderwithafocus 12–15 2.9,2.10,DMA-EC,EC-1

Satisfiedcustomersthankstonewstandardsinplumbingtechnology

16–21 EC-8,DMA-PR,PR-1,PR-2,PR-4,PR-5,PR-6,PR-8,PR-9

Thinking,shaping,changing:workingforGeberit

22–27 2.9,2.10,4.8,EC-5,DMA-LA,LA-1,LA-2,LA-5,LA-7,LA-8,LA-10,LA-11,

LA-12,LA-13,DMA-HR,HR-6,HR-7

Innovationfactoryforsustainableproducts 28–33 DMA-EN,EN-6,EN-26,DMA-PR

Responsiblemanagementofproductionandprocurement

34–39 DMA-EN,EN-1,EN-3,EN-5,EN-8,EN-16,EN-18,EN-21,EN-22,

EN-29,DMA-HR,HR-2

Socialcommitment 40–43 EC-8,EC-9,HR-3,DMA-SO,SO-2,SO-3,SO-4,SO-5,SO-6,SO-7

CorporateGovernance 44–45 2.3,4.1,4.2,4.3,4.4,4.5,4.6,

GlobalReportingInitiative–indexofcontents 46 3.12

Aboutthisreport 47 3.1,3.2,3.3,3.5,3.6,3.7,3.8,3.9,3.10,3.11

Backcover 50 3.4


Aboutthisreport

ThisisGeberit’ssecondSustainabilityReport.Itexpandsonandupdatesthe

firstreportonsustainabilityfromtheSummerof2004.Throughthisreport,

Geberitisfulfillingitsstatedintentionofpublishingadetailedreportonsustain-

ablecorporatemanagementeverythreeyears.Assuch,thereportcoversthe

financialyears2004to2006.Asarule,theinformationisbasedonthisthree-

yearperiodoronthesituationasoftheendoftheperiodunderreview,i.e.

31.12.2006,asregardsvaluesforaspecificpointintime(inventoryvalues)oron

thefinancialyear2006asfarasannuallydeterminedvaluesareconcerned

(cumulativevalues).Incaseswhereindividualinformationisbasedonotherperi-

ods,thisisstatedexplicitly.

Generallyspeaking,thereportconcernstheentireGeberitGroup.Ifonlypartof

thecompanyismeantasanexampleorasaresultoftheavailabilityofdata,

thisisclearlyindicated.Allrelevanteconomic,environmentalorsocialeffectsof

thecompanybasedontheGRIguidelineshavebeendiscussedinsofaras

correspondinginformationwasavailable.Thepresentreportdiffersfromthe2004

reportintermsoftheindicatorsandmeasuringmethodsstated,abovealldue

totheuseofthenewGRIG3reportingstandardasabasis.Theguidelinesofthis

newGRIstandardwereappliedwhereverthedatasituationpermittedthis.

Geberitalsoprovidesinformationonaspectsofsustainabilityinitsannualreports.

Additionally,regularlyupdatedinformationonthesubjectisavailableintheInternet.

Allstatementsincludedinthisreportwhichdonotconcernhistoricfacts,are

futurestatementswhichgivenoguaranteewhatsoeverintermsoffutureperfor-

mances;theyincluderisksanduncertainties,including,butnotrestrictedto,

futureglobaleconomicconditions,currencyexchangerates,statutoryregula-

tions,marketconditions,activitiesofcompetitorsaswellasotherfactorsoutside

ofthecontrolofthecompany.

TheSustainabilityReport2007ispublishedinGermanandEnglish,andisalso

availableasanonlineversionintheInternet.TheprintedGermanversionis

binding.

SustainabilityReport2007 47

Concept, content:sustainservGmbH,ZurichandBoston,Geberit

Texts:sustainservGmbH,Burson-Marsteller,Zurich,Geberit

Layout and design:WirzCorporateAG,Zurich

Prepress/Press:Linkgroup,Zurich

Pictures:AndreasMader(Peoplephotog-raphy),BenHuggler,ÖBB,Geberit

Furniture:wohnbedarfag,Zurich

Paper:PlanoArt

Cert no. SQS-COC-100142

Sustainably enhancing quality of life

Geberit’s objective is a sustained improvement in the quality of people’s

lives through innovative solutions in plumbing technology, thus assuming

economic, ecological, and social responsibility. This is how Geberit inter-

prets sustainability.

Geberit is the European market leader in plumbing technology and is globally

oriented. The products, systems and services are continuously being further de-

veloped and set new standards. This is only possible thanks to the top-level

performance of our employees and long-term partnerships with companies and

organizations from the fields of business, research and society. Because this

is always a matter of dialog and cooperation with people, we allow these to have

their say in our Sustainability Report 2007. Our central theme of water – in all its

manifestations – forms the backdrop for this.

Sustainably enhancing quality of lifeSustainability Report 2007

Geberit AG

Schachenstrasse 77

CH-8645 Jona

T +41 (0) 55 221 63 00

F +41 (0) 55 221 67 47

www.geberit.com

sustainably enhancing quality of life - geberit · 2018-08-14 · sustainably enhancing quality of...

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