Notes to the Financial Statements

2.1 Guarantees, assets pledged in favor of third parties

	31.12.2018	31.12.2017
	MCHF	MCHF
Guarantee notes, MEUR 325 (PY: MEUR 500), 0.688%, due 30.03.2021	365.8	584.4
Guarantee Revolving Facility, due 06.11.2022	500.0	500.0
Guarantee GRI Pensions	0.1	0.1

The guarantees are limited to the distributable reserves of the company.

2.2 Significant investments

	2018 Ownership in %	2018 capital stock	2017 Ownership in %	2017 capital stock

Geberit Holding AG, Rapperswil-Jona	100	TCHF 39 350	100	TCHF 39 350
Geberit Reinsurance Ltd., Guernsey	100	TEUR 2	100	TEUR 2

The investments are stated separately at the respective acquisition costs, less any adjustments required. The indirect investments are shown in the Notes to the Consolidated Financial Statements in the Note 33.

2.3 Share capital

The share capital of Geberit AG consists of 37,041,427 ordinary shares with a par value of CHF 0.10 each.

	2018	2017
Number of shares issued	pcs.	pcs.
January 1	37,041,427	37,041,427
December 31	37,041,427	37,041,427

2.4 Capital contribution reserves

From the total of MCHF 25.7 shown as at 31.12.2018 the amount of MCHF 4.2 was confirmed by the Swiss tax authorities and is therefore available for withholding tax free distribution.

2.5 Treasury shares

Treasury shares held by Geberit AG or by companies in which Geberit AG holds a majority interest:

		Prices per share
	Number of registered shares	High	Average	Low
		in CHF	in CHF	in CHF
Balance at December 31, 2017	391,640
Purchases share buyback program 2017 - 2020	445,551	452.95	414.53	375.17
Other Purchases	250,000	467.09	434.01	412.25
Sales	-88,009	467.30	435.44	412.90
Balance at December 31, 2018	999,182
Number of treasury shares held by Geberit AG	650,801

The Board of Directors of Geberit AG decided in March 2017 to initiate a share buyback program. Over a maximum period of three years, shares for a total amount of maximum CHF 450 million will be repurchased, less withholding tax. As at December 31, 2018, in total 650’801 shares for a total amount of MCHF 276.5 were repurchased under the program.

The legal reserves for treasury shares were recorded at cost.

2.6 Bonds

Geberit has the following bonds outstanding:

a bond of MCHF 150 with a term of four years and a coupon of 0.05%, due 17.04.2019
a bond of MCHF 150 with a term of eight years and a coupon of 0.3%, due 17.04.2023

2.7 Shareholdings of members of the board of directors and of the group executive board

As of the end of 2018 and 2017, members of the Board of Directors held the following shares in the company:

	A. Baehny Chairman	H. Reuter Vice Chairman	F. Ehrat	T. Hübner	J. Tang-Jensen	E. Zehnder-Lai	Total
2018
Shareholdings Board of Directors
Shares	70,778	9,023	2,798	1,343	2,920	363	87,225
Options	41,864	0	0	0	0	0	41,864
Share of voting rights	0.19%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	0.24%

	A. Baehny Chairman	H. Reuter Vice Chairman	F. Ehrat	T. Hübner	J. Tang-Jensen	E. Zehnder-Lai	Total
2017
Shareholdings Board of Directors
Shares	56,812	8,318	2,281	858	2,511	0	70,780
Options	55,231	0	0	0	0	0	55,231
Share of voting rights	0.15%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	0.0%	0.19%

As of December 31, 2018, there were no outstanding loans or credits between the company and members of the Board of Directors

As of the end of 2018 and 2017, the Group Executive Board held the following shares in the company:

	Maturity	Average exercise price in CHF	C. Buhl CEO	R. Iff CFO	M. Bau- müller	E. Renfordt- Sasse	K. Spach- mann	R. van Triest	M. Ziegler	Total
2018
Shareholdings Group Executive Board
Shares			7,404	31,564	3,078	1,546	12,500	300	2,416	58,808
Percentage voting rights shares			< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	< 0.1%	0.16%

Call options¹
End of vesting period:
Lapsed	2020-2024	332.00	13,219	8,836	3,706	6,166	807	60	2,857	35,651
2019	2022-2026	394.76	11,600	7,665	754	4,074	6,766	2,621	980	34,460
2020	2023-2027	409.97	13,351	7,608	1,983	3,664	6,751	4,627	921	38,905
2021	2024-2028	409.97	19,945	10,746	3,462	5,161	9,684	6,653	2,548	58,199
2022	2025-2028	434.08	13,439	6,623	3,088	3,098	6,056	4,067	2,071	38,442
2023	2028	432.20	6,871	3,266	1,527	1,594	3,011	2,036	1,696	20,001
Total options			78,425	44,744	14,520	23,757	33,075	20,064	11,073	225,658
Percentage potential share of voting rights options			0.21%	0.12%	< 0.1%	< 0.1%	< 0.1%	< 0,1%	< 0,1%	0.61%
¹ Purchase ratio 1 share for 1 option

	Maturity	Average exercise price in CHF	C. Buhl CEO	R. Iff CFO	M. Bau- müller	M. Rein- hard	E. Renfordt- Sasse	K. Spach- mann	R. van Triest	Total
2017
Shareholdings Group Executive Board
Shares			6,212	32,840	2,850	2,500	2,452	12,407	200	59,461
Percentage voting rights shares			< 0.1%	< 0.1%	< 0,1%	< 0.1%	< 0.1%	< 0.1%	< 0,1%	0.16%

Call options¹
End of vesting period:
Lapsed	2020-2023	306.01	7,474	9,172	2,922	3,783	4,779	3,236	10	31,376
2018	2021-2024	357.20	5,745	7,091	784	7,261	2,631	6,140	50	29,702
2019	2022-2026	382.28	11,302	7,484	697	7,989	4,074	6,647	2,596	40,789
2020	2023-2027	398.85	13,053	7,427	1,926	7,895	3,664	6,632	4,602	45,199
2021	2024-2027	398.85	12,776	7,299	1,878	7,770	3,567	6,554	4,592	44,436
2022	2027	435.95	6,270	3,176	1,504	3,314	1,504	2,926	2,006	20,700
Total options			56,620	41,649	9,711	38,012	20,219	32,135	13,856	212,202
Percentage potential share of voting rights options			0.15%	0.11%	< 0.1%	0.10%	< 0.1%	< 0.1%	< 0.1%	0.57%
¹ Purchase ratio 1 share for 1 option

As of December 31, 2018, there were no outstanding loans or credits between the company and members of the Group Executive Board

2.8 Significant shareholders

According to the information available to the Board of Directors, the following shareholders have attained or exceeded the threshold of 3% of the share capital of Geberit AG:

	31.12.2018	31.12.2017
Black Rock, New York (notification dated: 01.08.2018)	4.98%	4.99%
Marathon Asset Management, London (notification dated: 20.12.2018)	3.02%	< 3.00%

2.9 Employees

In Geberit AG no employees are employed.