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Sustainability Report 202305 Foreword by the Management Board 06 Financial year 2023 08 Global Presence 10 Product Segments 12 Brand Values 14 Sustainability Management 16 Facts & Figures 18 Materiality Analysis 22 Water-saving Technologies 26Duravit goes Canada 28 Greenhouse gas emissions Company Action Area Water Action Area Climate 2 Company | Content32Mine Renaturation 36Supporting Schools 38Employee Development 40Employee Satisfaction Action Area Resources Action Area People Appendix 42 About this Report 44 KPIs 58 Memberships & Associations 60 GRI - Content Index 63 Imprint 3The Duravit Group once again found itself up against a highly challenging global market environment in financial year 2023. Total global sales achieved were down year on year, albeit the previous year was a year of strong growth. We were pleased to be able to gain market share over our competitors. This accomplishment was due entirely to our employees, and we are profoundly grateful to them for their hard work through- out this challenging year. At the same time, we are continuing with our investment strategy and are staying true to our ambitious target of being climate-neutral by 2045. Our production facility at the new site in Matane/Canada will play a key role in achieving this objective. The foundation stone for this new facility was laid in July 2023 and marked one of the highlights of the previous year. We are planning to start production of large sanitary ceramic items for the North American market in 2025. The issue of sustainability is one of our five strategic pillars. This is one of our focal areas of activity alongside the topics of “Customer & Brand”, “Digitalization”, “Employees & Organization” and “Supply Chain”. After all, we operate in an energy-intensive sector, which makes us especially responsible for handling resources properly and protecting the environment. For us, the new facility in Canada is a decisive step in the direction of climate-neutral manufacturing operations. With the electric kiln powered by hydroelectric energy, we are tackling the root cause of carbon emissions that arise during firing, a process that historically was typically powered by gas. As we see it, this project is a true game-changer for our sector. Our employees are essential to our company’s success. As a future-oriented family company with global operations, a further acknowledgement of the significance of our work- force was the creation of a dedicated executive portfolio for Personnel & Organizational Development at the start of 2024. We will continue to work together toward a successful future. Dear friends of Duravit, Martin Winkle Chief Financial Officer Stephan Tahy Chief Executive Officer Thomas Stammel Chief Operating Officer Ingmar Irle Chief People Officer 5 5 Company | Foreword by the Management Board GRI 2-22 | GRI 2-23In 2023, the Duravit Group achieved total global sales of EUR 663.7 million, corresponding to a year-on-year fall of 7.3 %. All of our competitors also experienced significant falls in sales. The Duravit Group experienced its biggest declines of 2023 in Germany and Egypt (on a Euro basis). The financial per- formance of EUR 15.8 million in Egypt is attributable to the devaluation of the Egyptian pound. Sales in the local currency rose by 34.0 %. In Germany, the Duravit Group experienced a fall in sales of 13.2 %. Key markets (renovation business, newbuilds) experienced a marked slump against the back- drop of the economic situation. Further, the effects of high interest rates and above-average inflation are making them- selves felt. Sales in the export markets fell by 17.5 % year on year, largely due to the decline in sales in Europe (-9.2 %), Africa (-15.7 %), and North America (-1.5 %). Conversely, the Group enjoyed significant growth in sales in the markets China, United Arab Emirates, and Turkey. The Duravit Group achieved around 36 % (prior year: 37 %) of its sales in the Eurozone, meaning that the proportion of sales generated internationally rose from the last year’s total of 79.6 % to 80.9 %. The proportion of sales in Europe fell from 51.1 % to 49.1 %. The picture painted by the individual product segments is inconsistent: sales of ceramic products in 2023 fell by 8.9 %, while the bathroom furniture segment experienced a year- on-year decline of 24.7 %. The Bathtubs & Wellness segment fell by 10.9 %, while the Bathroom Equipment/Accessories segment experienced a decline of 7.9 %. Business with our SensoWash® shower-toilets fell by 4.7 %. The Faucets segment, which was up 63.4 %, experienced the strongest growth. The Bernstein segment grew by 2.2 %. In 2023 we launched a range of new products for different target groups, including the new product ranges “Qatego” (designed by Studio F. A. Porsche), “Vitrium” (designed by Christian Werner), and “Millio” (designed by Antonio Bullo). The “Vitrium” and “Millio” ranges position the new cast- mineral material “DuroCast” as an alternative to ceramic in the lower luxury segment. The new “Qatego” range sits within the medium price segment. Additionally, the new “D-Neo” model was launched in the “Shower-Toilet” product segment, along with the new additions of the “Wave”, “Circle”, “Manhattan” (design by Duravit) ranges in various finishes to the “Bathroom Faucets” product segment. The “Vitrium” and “Qatego” ranges represent a continuation of Duravit’s consistent strengthening of its approach and positioning as a complete bathroom supplier, as the product ranges also include bathtubs and faucets in addition to ceramics and bathroom furniture. Clear product recommen- dations make it easier for our customers to select the perfect product. We are continually analyzing our product portfolio and adapting it to the needs of our customers. The Duravit Group had an annual average of 7,239 full-time-equivalent employees, 1.2 % more than last year. In 2023, the number of employees in Germany fell by 0.4 %, while the equivalent figure in the foreign companies rose by 1.6 %. The proportion of the workforce employed abroad was 81.5 %. Economic situation 6 Company | Financial year 2023 GRI 2-3 | GRI 2-6 | GRI 201-1 | GRI 401-1TheDuravitGroupinfigures 7,239 Employees 137 Sales companies 27 Sales and marketing offices 11 Production facilities + logistics site since 1817 EUR 663.7 MILLION The Duravit Group’s total 2023 in Euro 7Headquarters in Hornberg Production facilities + logistics Sales and marketing offices Showrooms/Training Center + Virtual Showroom Duravit worldwide 1 11 27 16 8 Company | Global Presence GRI 2-1 | GRI 2-6Germany Headquarters in Hornberg Production facilities in Hornberg Meissen Schenkenzell Logistics site in Achern Achern Meissen Hornberg Schenkenzell 9Next >