Villeroy & Boch Group is committed to its Code of Conduct and especially the corporate core values outlined therein:

• Professional integrity
• Openness
• Fairness
• Responsibility
• Loyalty
• Honesty

To transfer these values into operations, Villeroy & Boch Group has implemented a Compliance Guideline (“Compliance Richtlinie”), providing principles to compliance. For Villeroy & Boch Group’s tax function, this means that activities are carried out based on the commitment to operate in accordance with international and local laws and regulations. Villeroy & Boch Group’s values described above are also to be reflected in Tax Management for the group. To comply with those values, Villeroy & Boch Group aims act as a responsible global taxpayer.

Therefore, this Guideline was designed to create transparency, to define a binding position to tax compliance and to ensure integrity towards employees, customers, business partners and the countries in which Villeroy & Boch Group operates as well as respective tax authorities.

Villeroy & Boch Group understands that tax is embedded various aspects of commercial operations. Generally, tax follows business developments and needs. The Tax function aligns its goals to the needs of commercial operations globally (Guiding Principle: Tax follows business).

Therefore, Villeroy & Boch Group generally sets up group structures with economic substance to

optimize its value chain. Although tax opportunities in terms of reorganizations are considered, the main aim of restructurings are not tax planning or tax optimization (Guiding Principle: Tax Planning according to the intention of tax rules or no pure tax optimization).

Besides delivering competence in the field of ceramics and excellent product quality, Villeroy & Boch Group’s customers, investors and regulators expect the business operations to be conducted in
accordance with these values and in compliance with applicable law. As a listed company, Villeroy & Boch Group attaches particular importance to the global reputation of its brand. This reputation can only be preserved if the tax compliance strategy in this Guideline is pursued (Guiding Principle: Minimizing reputation risks).

The aim of Villeroy & Boch Groups’ tax strategy is to achieve full tax compliance. Villeroy & Boch Group pays taxes at the appropriate level in each country along its value chain. By implementing a Tax CMS,Villeroy & Boch Group highlights the importance to fully comply with tax regulations. The Tax CMS contributes significantly to ensure the achievement of this objective (Guiding Principle: Compliance).

The guiding principles for the tax strategy of Villeroy & Boch Group are summarized below:

The Villeroy & Boch Group acts as a responsible taxpayer with respect to its tax strategy and principles described above