Responsible for People and the Environment Contents Preface

BLANCO GmbH + Co KG Sustainability report for 2010/2011

May 2012

Responsible for people and the environment Contents Preface...... 3

Company profile...... 4 Company details - fiscal years 2010/2011...... 4 Production sites...... 5 Chronicle...... 6 Environmental guidelines...... 7 Employee guidelines...... 8

Communication...... 9 Compliance guideline – Code of Conduct...... 9 New Internet – new Intranet...... 10 Company guide...... 10 Prizes and awards...... 11 Clubs and culture...... 11

Strategy and management system...... 12 Environmental and quality management systems...... 12 Ideas management...... 13 Energy management...... 14 Risk management, aims and methods...... 14 Sustainability programme 2010-2013 ...... 15

Products and technology...... 16 Products...... 16 Customer service...... 18 Technology...... 19

Effects on the environment...... 20 Energy...... 20 Electricity...... 20 Solar energy...... 21 Heating oil / natural gas...... 22 Compressed air...... 24 Waste...... 24 Water / waste water ...... 25 Emissions...... 26 Transport / traffic...... 26 Soil...... 27 Raw materials and supplies...... 28

Employees...... 29 Apprenticeship...... 29 Special commitment to the next generation...... 30 Advanced training...... 31 Working time models...... 31 Childcare...... 32 Partial retirement...... 32 Events for staff...... 32 Anniversary celebrations...... 33 Retirement celebrations...... 33 Introduction of company clothing...... 33 Canteen...... 33 Accident prevention ...... 34 Health management...... 34 Sports...... 35

2 As an economically strong company that is aligned to the future, BLANCO has the Preface freedom to address ecological and social issues, and to support them to the best of its ability. At BLANCO, the three spheres of action – economy, ecology, social environment – are all of equal status, rather than being grouped hierarchically.

The publication of the third sustainability report clearly illustrates that sustainability is fi rmly anchored in the corporate strategy.

The report presents the company‘s activities over the reporting period, and provides an overview of planned measures.

rüdiger böhle achim Schreiber wolfgang Schneider CFO CEO and Chairman CTO of the executive Environmental Offi cer Board of Directors

3 Company profile BLANCO represents competence in every aspect of the sink centre, and in this field is one of the leading suppliers in the world. With a comprehensive range of sinks, bowls, mixer taps, waste separation and organisation systems and accessories, the company has a wide and comprehensive choice for every market segment with perfectly mat- Company details ched solutions to suit any requirement. – Fiscal years 2010/2011

Production sites BLANCO is based in Oberderdingen (Baden-Wuerttemberg) in the South of Germa- Chronicle ny. The main production sites are in the surrounding area. BLANCO maintains close Environmental guidelines contacts with its markets through its international subsidiaries and marketing partners Employee guidelines of many years‘ standing in over 100 countries.

One particularly notable aspect at BLANCO is the outstanding loyalty of its employees. This is based largely on the respectful and appreciative manner with which our staff treat each other plus a highly-developed corporate culture and strong value orientation.

Company details - fiscal years 2010/2011

Shareholders The EGO Blanc and Fischer Group holds a 69.3% majority share in BLANCO. Three members of the Heinz Blanc family hold 30.7%.

Employees 2010 approx. 1200 worldwide 2011 approx. 1200 worldwide

Turnover 2010 € 242 million worldwide 2011 € 252 million worldwide

Sales BLANCO is an international company that sells its products all over the world. The export share is 61%.

Head office and administration Oberderdingen

Production sites Sinsheim, Sulzfeld, Toronto/Canada, Istanbul/Turkey, Bruchsal

Sales companies BLANCO has direct representations in Germany, Austria, Switzerland, Belgium, France, GB, the Ukraine, Russia, the USA, Canada, China and India, and has partners of many years‘ standing in approx. 100 other countries.

4 Production sites Company profile

Sinsheim – Centre of excellence for composite sinks Silgranit™ sinks consist of approx. 80% quartz sands, bound in an acrylic matrix Company details with colour pigments and other additives that are responsible for the material proper- – Fiscal years 2010/2011 ties. The production stages in Sinsheim consist of processing the raw materials, the curing process and the mechanical processing of blanks in a washing station before the Production sites items are packed and loaded directly from the loading ramps. Throughput times have Chronicle been reduced in recent years Environmental guidelines from 5 to 3 days. An adjoining Employee guidelines hall was purchased in 2011 to increase the production site.

Toronto/Canada – production site for composite sinks As in Sinsheim, only SILGRANIT™ sinks are manufactured in Toronto. The manufacturing process is largely identical.

Sulzfeld – centre of excellence for stainless steel sinks Stainless steel sinks and products of the premium brand SteelArt are made from blank materials using deep-drawing processes or complicated welding processes. Depending on the particular product, the various steps in the production process may consist of the deep-drawing process and packaging, or may include additional cutting, grinding and polishing processes and the subsequent washing, laser etching and automatic palleting on the loading ramp.

Istanbul/Turkey – production site for ceramic sinks Sinks for the highest standards are made from natural raw materials in processes that require a high level of skill.

Bruchsal - European logistics centre The majority of sinks are sent to the customer or our international subsidiaries and representatives from the logistics centre in Bruchsal. This is where the sinks and accessories are assembled and packed individually for the customer.

5 Company profile Chronicle

1925 On 20 January, Heinrich Blanc sets up Blanc & Co. in Oberderdingen, and commences the serial production of tin-plated copper water troughs. Company details – Fiscal years 2010/2011 1937 BLANCO changes its entire production over to pure aluminium. Production sites New products such as water kettles and ladles are included in its delivery Chronicle programme. Environmental guidelines 1951 The company‘s finest hour dawns when it commences the production of sinks Employee guidelines and sink top covers in Nirosta (stainless steel). It also manufactures other appli- ances for the large-scale catering kitchen industry and bottles for propane gas.

1967 In November, the company produces its 3 millionth sink. New additions to the delivery programme: profiled and smooth table tops and inset sinks.

BLANCO sets great store in the training of the next generation. It opens a modern, future-orientated training centre for commercial trainees in Kürnbach.

1985 December: production commences of SILACRON® sinks.

1990 A new production hall for manufacturing sinks in composite materials is taken into operation in Sinsheim in the spring.

1994 BLANCO‘s 25 millionth domestic sinks leaves the conveyor.

The Sinsheim plant is the first company division to receive certification to ISO 9002.

1995 BLANCO acquires a production works for composite sinks in Toronto/Canada that is integrated in BLANCO Canada Inc.

1996 The award for environmentally aware company management 1996/1997 is received from the Arbeitsgemeinschaft Selbstständiger Unternehmer e.V. ASU.

The Sinsheim plant undergoes the first „eco“ audit.

1999 The fully-automated press line makes the Sulzfeld plant the most modern production facility for stainless steel sinks in the world.

2001 In Pforzheim, the local transfer group of the „Caux Round Table“ by Frank Straub appears in public for the first time.

2006 The 40 millionth sink leaves the conveyor.

The award for exemplary environmental awareness is received from the state Baden-Wuerttemberg.

Frank Straub receives the CRT Award for ethical business.

2007 Launch of BLANCO Agil: BLANCO GmbH + Co KG and BLANCO CS GmbH + Co KG become independent companies in the middle of the year.

2008 The new logistics centre in Bruchsal commences operation.

Opening of the ceramic sink production facility in Istanbul.

B.A.U.M. e.V. presents the environmental officer with the environmental award for excellent practical services to sustainable development.

Launch of an energy management programme under the logo „Enerfit“.

Move-in of new admin premises in Oberderdingen.

2009 Frank Straub moves to the Administration Board and becomes Chairman.

Achim Schreiber becomes the company‘s CEO.

Commencement of extensive restructuring measures in the stainless steel sinks division.

2010 Stainless steel production merges in Sulzfeld

2011 Solar system in Bruchsal with a peak output of 900 kW is taken into operation

6 Environmental guidelines Company profile

The environmental guidelines have been adapted to the company‘s strategy.

Company details – Fiscal years 2010/2011 The principle Production sites The preservation and protection of our environment is part of our corporate policy. We Chronicle are aware that consistent consideration of ecological requirements is the only way to Environmental guidelines secure the company‘s economic success for the long term. Protection of the environ- Employee guidelines ment, quality and occupational safety are integrated in our management system.

Our products and processes Our products and production processes are all designed to be environmentally friendly, which enables us to contribute actively to the long-term preservation of a liveable environment. Which is why we are pleased that the environmental compatibility, durability and reusability of products are increasingly becoming a key Our products and processes should be factor in economic competition. environmentally friendly and save resources. The observation of legal requirements as a minimum is ensured by regular We want to contribute actively to protecting and fully recorded monitoring measures. Furthermore, we also aim to redu- and improving our environment. ce the environmental effects of our production facilities and products to an economically responsible minimum. This is an area where we want to lead We want to behave in way that clearly the way in the industry. demonstrates that economy and ecology are not a contradiction in terms. We consistently include ecological findings in the development of new (Extract from our Corporate guidelines) products and procedures, in the optimisation of existing ones, and in the selection of raw materials.

Our customers Our customers‘ demand for environmental compatibility, durability and reusability are checked and incorporated in our products whenever possible.

We comply with their desire for increased information on the ecological aspects of our production programme in an open, dialogue-orientated information policy.

7 Company profile Our suppliers The choice of supplier is of the utmost importance in complying with our ecological standards, which is why we instruct them in our environmental guidelines and policies, and the consequences thereof, from the outset. Of course, suppliers who address Company details environmental issues actively and with commitment have the advantage. – Fiscal years 2010/2011 Production sites Chronicle The public Environmental guidelines We believe it is our duty to provide the public with comprehensive, fair information on Employee guidelines our activities. Openness, a willingness to communicate and a thorough understanding of our responsibilities are the yardsticks.

Our employees To us, occupational safety is an inherent component in a complete concept. A controlled documented risk assessment of the workplace helps to establish and eliminate weak areas.

We expect our employees to have a conscious and consistent awareness of their responsibility for the environment. We provide the knowledge that is required for this in specific basic and advanced training measures.

Employee guidelines

The Corporate Guidelines – People, Teamwork and Leadership communicate how BLANCO‘s employees perceive themselves and behave in their professional world and in their dealings with each other.

The aim is that employees should identify with the contents. Employees are expected to observe these guidelines.

Furthermore, we also aim to reduce the environmental effects of our production facilities and products to an economically responsible minimum. (Extract from our Environmental guidelines)

8 Communication Communication

BLANCO uses every means of communication that the modern media world has to offer. In addition to the classic brochures, press releases and the Internet, the Compliance guideline biennial sustainability report is of particular importance to us. It enables us to show – Code of Conduct how BLANCO has developed in this area. It confirms that the actual creation of modern New Internet – new Intranet and innovative products is as important as the products themselves are. Company Guide Prizes and awards This report illustrates the extent to which our aims have been achieved, what the past Clubs and culture two years have brought and what is to be addressed over the coming years.

Any questions or criticisms concerning BLANCO, be they from authorities, neighbours, customers or suppliers, are dealt with without delay. The communication channels are defined, so all questions are dealt with.

„BLANCO Horizonte“ is published four times a year, and in it BLANCO - and BLANCO CS - offer information on everything to do with company life. It offers a platform for employees and their issues, and is also inform about new products, production processes and trade fair activities. Everyone is welcome to speak, whether in an interview or to talk about their hobbies.

However, rather than wait for external instructions, BLANCO is proactive within the realms of its possibilities. Platforms are provided by the company‘s involvement in the working groups „Environment and Energy“ of the Chamber of Industry and Com- merce, „Product-relevant environmental care“ and „Chemicals policy“ of the ZVEI, in the network REACH@Baden-Württemberg, in DIN standards committees and the expert committees of the AMK (Arbeitskreis moderne Küche) and membership of B.A.U.M. (Bundesdeutscher Arbeitskreis für umweltbewusstes Management).

Compliance guideline – Code of Conduct

BLANCO has always expected ethically correct, law-abiding behaviour of its employees and partners. The Compliance Guideline - Code We act with integrity and respect of Conduct was drawn up to support employees in observing these requirements. It not only explains the applicable legal requirements ethical values. using examples, but provides specific codes of behaviour for emplo- (Corporate Guidelines – People, Teamwork and Leadership) yees to implement the main ethical expectations of the CAUX ROUND TABLE DEUTSCHLAND e.V. (CRT). It states clearly how to behave towards the compe- titors, customers and suppliers, for instance with regard to the ban on price fixing, and on the granting and accepting of benefits such as gifts and discounts.

The guideline applies to all employees in the national and international companies of the BLANCO Kitchen Technology Group.

It is important to BLANCO that ethical principles be observed in business life, and en- couraged of its suppliers and partners. The Code of Conduct approved by BLANCO has a key role here, which commits suppliers and partners to the appropriate behaviour, Furthermore, we also aim to reduce the environmental effects of and in particular to avoiding any and all kinds of discrimination and exploitation of its employees. our production facilities and products to an economically responsible minimum. (Extract from our Environmental guidelines)

9 Communication New Internet – new Intranet

One of the main forms of communication is the Internet. We currently provide information there in eight languages; other languages are currently being worked on, or are Compliance guideline – planned. Code of Conduct New Internet – new Intranet In its new website, the company presents itself as well as its products. Target groups Company Guide should be able to obtain as much information on BLANCO as possible. The contribu- Prizes and awards tions provide a good overview of BLANCO‘s expectations of itself and others. Clubs and culture

Internally, the new Intranet provides staff with extensive support and standards for their daily work. It is easier to navigate around the new website, and it also enables every employee to compile his or her Intranet with the information that is of relevance to them.

Company Guide

The new online Company Guide was released for all staff in the middle of December 2011, and it is accessible via the Intranet.

Important rules, communication standards, personal development and health management at BLANCO - these are just some of the themes in the online Company Guide to provide greater clarity and easier orientation within the company. The Company Guide is not only intended for new members of staff; all staff will benefit from this new offer. It offers valuable support for orientation within the world of BLANCO, and thus makes it easier to achieve the planned results.

The introductions for the individual chapters describe the content, and contain direct links to the required documents. Details are also provided of a contact who will help in the event of questions or suggestions.

The support of all BLANCO employees will help to turn the platform into an important factor in internal communications.

10 Prizes and awards Communication

„German Standards - Brands of the Century“, issue 2010 BLANCO was included as one of the 281 brands in the Compliance guideline – 2010 issue of the industry compendium „German Stan- Code of Conduct dards - Brands of the Century“. New Internet – new Intranet Every German embassy and Goethe Institute contains Company Guide copies of this weighty tome, which is intended to give fo- Prizes and awards reign guests a clear insight into the German economical Clubs and culture landscape and the „Made in Germany“ standards.

Performance rating BLANCO was the overall winner in the „Performance rating“ „markt intern“, the industry information service, called upon its readers to submit their ratings of the performances and services provided by their various suppliers. BLANCO received an overall rating of “1” in 2010.

Award from the Association of Medium-Sized Specialist Kitchen Dealers in Germany - Award for Innovation 2011 For the fourth time in a row, BLANCO received an award for innovation from the Federal Association of Medium-Sized Specialist Kitchen Dealers. BLANCO‘s Combi- Colours concept came second in the category Kitchen Accessories. The BMK award for innovations is held in particularly high regard by the industry, since the jury is made up entirely of specialist kitchen dealers. This year, some 400 dealers took part in the national vote.

Highlights of the industry BLANCO is one of the „Highlights of the industry“. The aim of the major initiative by the Sparkasse Pforzheim Calw and nine other instigators was to find companies with specific competences and/or who demonstrated an exemplary level of commitment. BLANCO received an award in the category „Ethics“. BLANCO has been rooted in the region for decades, and is particularly aware of, and accepts, its global corporate responsibility.

Prestige Partner Award from the Canadian RONA Group With an order completion rate of over 96%, double-digit growth, good profit margins and a complaints rate of less than one percent, our Canadian subsidiary is now one of the most successful suppliers in the RONA Group. RONA is Canada‘s biggest provider of building and garden equipment, and employs over 30,000 people in around 950 locations.

Clubs and culture

Together with its sister companies BLANCO CS and E.G.O., BLANCO supports countless social and cultural facilities in the surrounding communities. Examples include the municipal library in Sulzfeld, the Villa Sonnenschein daycare centre We are aware that we have a particular in Oberderdingen, and a number of other nurseries or schools. It also provides financial support for a number of sports clubs. level of social responsibility to our region. (Extract from our Corporate guidelines)

11 Strategy and Environmental and quality management systems management- In the past, „management systems“ were established in various subjects. Some have standards and certifications, whereas the meaning of the word applies for others. At system BLANCO, the management system refers to a generally valid procedure that includes the documentation and improvements.

Environmental and Certifications quality management systems • DIN EN ISO 9001 - quality management for the entire company since 1996 Ideas management (before that, after 1994, to DIN EN ISO 9002) Energy management • DIN EN ISO 14001 - the environmental management system for the site in Risk management, Sinsheim since 2000 (before then, EMAS - Environmental Management and aims and methods Audit Scheme since 1996). Sustainability programme 2010-2013 The company‘s entire certification is checked in accordance with DIN EN ISO 50001 - Energy Management. However, even if the systems are not certified, the sites all work in accordance with the requirements in the standards. The Management Manual com- bines all the management systems and describes how they are maintained and further improved. Audits are carried out systematically to check that the requirements are observed and to demonstrate the potential for improvement. Reports are submitted quarterly to the management, and are the basis of the evaluation and decision-making prior to the implementation of measures for improvement.

MANAGEMENT PROCESSES Measurement, analysis, improvement | Resource management | Strategy, policy, planning, targets

CORE PROCESSES Definition Development Procurement Production Sales Logistics After Sales

KSM

Development Procurement Definition KSV Production KSV Sales KSV Logistics KSV After Sales KSV KSV KSV KSV

KSA

I n p ut Development Procurement Definition KSC Production KSC Sales KSC Logistics KSC After Sales KSC out p ut KSC KSC KSC

KMIB

KZUB

Customer | Investor Society Market Employee KRES Customer | Investor Society Market Employee

One significant improvement in handling is the database update for the processes and documents. Since 2010, all documentation has been tested, adapted and improved. This process is to be completed by the end of 2012. As before, all the sequences and the corresponding documents will be available through the Intranet. Particular attention is paid to the clear presentation, focusing on the essential and better selectability.

12 Ideas management Strategy and Motivated and creative employees are the key to a company‘s success. In order to fully management- utilise the potential, it is important that they are able to bring their knowledge and ideas to the company. Ideas management creates incentives and implements the process system in order to make the evaluation and implementation of these ideas easy and effective.

A process improvement can and should develop out of lots of tiny steps, and must be Environmental and lived by every member of staff. This makes it a company‘s mission statement that is quality management systems lived on the inside: Ideas management • the desire for continuous improvement Energy management • supported by every person in the organisation Risk management, • motivation from the acquired acknowledgement. aims and methods Sustainability programme Cleanliness and order are particularly important, and are represented in „6S“ with 2010-2013 the 6 steps towards permanent order – sorting, tidying, cleanliness, standardisation, discipline and familiarisation. This not only incorporates the production area, but the administration and its numerous documents, files and forms as well.

Ideas management is divided into two areas:

KVP (Continuous process of improvement): The suggestions prepared in the „continuous process of improvement“ concern a staff member‘s area of activity. They are worked out alone or in a group, and no bonuses are given. • 2010 = € 806,077 saved • 2011 = € 644,419 saved

BVW (Employee suggestion scheme): The classic „employee suggestion scheme“ in which employees are financially involved in saving or the awarding of prizes to particularly good ideas even if they cannot be quantified in money. • 2010 = € 198,292 saved and € 44,263 rewards to staff • 2011 = € 472,940 saved and € 95,707 rewards to staff

Chart showing the received proposals for improvement

BVW KVP BVW KVP BVW KVP BVW KVP 800

600

400

200

147 109 136 671 123 676 127 486 0 2008 2009 2010 2011

There is also an annual raffle with wonderful prizes for all KVP and BVW suggestions submitted.

13 Strategy and Energy management management- The ENERFIT programme was created in 2008 and a number of programmes initiated, and next on the agenda is the introduction of energy management to DIN EN ISO system 50001. 2010 and 2011 saw the completion of preparatory work, such as a Bachelor‘s thesis on „Development of the systematic procedure for the implementation of energy management for possibly certification in line with the ENERFIT programme“, which Environmental and should culminate in certification within the next year or two. quality management systems Ideas management The energy management is integrated in the current management system. Energy management Risk management, BLANCO presented its ENERFIT programme to aims and methods the „Environment and Energy“ working group at an Sustainability programme event organised by the Chamber of Commerce in 2010-2013 2011.

Risk management, aims and methods

Corporate activities are always associated with opportunities and risks. Not all risks can be avoided. They should therefore be recorded, evaluated, monitored and then preven- ted, no later than at the time when they become significant to the company‘s economic situation. The aim of proper risk management is to secure the company‘s assets and safeguard its continued existence.

Risk management is a continuous process that calls for prompt and flexible responses to constantly changing risk situations, all year round. To this end, it is necessary to defi- ne clear processes and responsibilities and establish structured procedures.

In addition to continuous monitoring by those responsible for risk in the various divisi- ons, the risk elements that introduce the annual update of risk management should also periodically be examined.

BLANCO uses a software tool for the standardised recording, evaluation and aggrega- tion of risks. The software in question is a proven solution offered by a management consultancy that specialises in risk management. This system facilitates the inclusion of company details (e.g. planning, annual accounts) for the concrete and company- specific risk evaluation.

The software supports the monitoring of defined measures, the continuous standardised local compilation of all risks and the clear presentation of the overall risk position.

14 Sustainability programme 2010 – 2013 Strategy and

The sustainability programme is the result of our environmental and social objectives, management- and is determined annually with the management and plant managers. The degree of performance is checked every four months. system

Aims Actions Location Environmental and Machinery, equip- Construction of a second raw materials tank Sinsheim 1 quality management systems ment, buildings Installation of a sprinkler system in the entire plant Sinsheim 1 Ideas management Absolutely no waste water in the washing systems Sulzfeld 3 Energy management Risk management, Water pollution Other sections in the restoration of the waste water Sulzfeld / 2 control channels Oberderdingen aims and methods Sustainability programme Legal security Development of the legal register all 2 2010-2013 Energy management Windows renovated to father improve heat insulation Sinsheim 3 Preheating of ambient air in raw parts processing Sinsheim 1 using waste heat from a dry cooler Planning of a photovoltaic system on the hall roof Bruchsal 1 2010 + 2011 Implementation of a complete energy management all 2 system; processing in the „ENER-FIT“ project Introduction/development of the building control all 2 system Emission reduction Extension of the recovery of raw materials to the Sinsheim 3 overpressure exhaust of the material transportation containers

Energy management Realignment of energy management to all 2 DIN EN ISO 50001 Level sensors on all heating oil tanks and all 2 connection to the building control system Additional energy provided by a combined heat and Sinsheim 3 power plant (gas turbine) Cooling power without external energy level 2 Sinsheim 3 Optimise ventilation of the milling cabins Sinsheim 3

Check the efficiency of a combined heat and power Sulzfeld 2 plant Emission reduction Dry brushing system for blanks Sulzfeld 3 Short routes in the procurement of raw materials Canada 2 Health Stop smoking - Give It Up 2012“ - launched in March Canada 3

2012 + 2013 management 2012 with the support of the „Canadian Cancer Socie- ty“ programme „Healthy Eating“ initiative with quarterly Canada 2 training programme Training for managers on the subject of Canada 3 Health and Safety at Work Employee loyalty Extension of retirement arrangements all 3 Bringing in the Talent programme all 3 next generation Water Check drinking water pipeline and update as required all 3 Waste Tool to further reduce returns from customers Bruchsal 3

1 = complete, 2 = in progress or permanent, 3 = open

The personal objectives of the involved members of staff are derived from these objectives.

15 Products and Products technology When the REACH directive came into force, the new European legislation for the regis- tration, evaluation, authorisation and restriction of chemicals, BLANCO consulted all its Products main pre-suppliers to establish whether any of the products they supply contain any Customer service critical substances. Of the greatest significance are the „SVHC“ – Substances of Very Technology High Concern – on the list that are checked, or substances from the appendices that are banned or require approval before they can be used. BLANCO fulfils its obligation to provide customers with information by publishing regularly updated information in the Internet.

The product range not only comprises sinks in various materials, but also the matching mixer taps, waste separation systems and cleaning products. Various accessories such as cutting and chopping boards, detergent dispensers, sensor-controlled pop-ups and multifunctional colanders are available to complete the sink.

Sinks and their materials Stainless steel integrates beautifully in any kitchen environment. The durability, and the fact that the material is 100% recyclable, more than justifies the amount of energy required for producing it. New items are 90% recyclable.

BLANCO utilised the full extent of its material competence and its experience as a sink specialist in the development of SILGRANIT™ PuraDur™ II. SILGRANIT™ PuraDur™ II is our own development, and has been available on the market since 2009. Independent test institutes test its resilience and ease of maintenance. Today, SILGRANIT™ PuraDur™ II sinks are the world‘s highest-selling sinks made of a composite material.

Ceramic sinks complete the product range. Since 2009, these sinks have come from the BLANCO plant in Istanbul.

All our sink materials are easy-care, resilient, heat- and acid-resistant and 100% non- fading, and independent test institutes check them to ensure that they are safe for use with food.

Mixer taps Without water to drink, we would not survive. That is why hygiene and safety have the highest priority at BLANCO. BLANCO uses only certified materials in all the water-conducting parts of its mixer taps. Voluntary certification by DVGW CERT GmbH (certification body of the German Scientific and Technical Association for Gas and Water) confirms BLANCO‘s adherence to the requirements of the German drinking water regulation.

BLANCO mixer taps meet the requirements of noise class 1 for the development of noise when drawing water.

Innovation is often found in the details. Although they may appear insignifi- cant at first, they do offer a distinct advantage. Mixer taps come with a little dirt filter for the angle valve. This stops the taps from dripping and makes them last longer.

16 Products Products and Waste systems in the kitchen technology Packaging, paper, rubbish – waste separation starts in the kitchen. Built-in solutions under the sink are extremely popular. The Blancoselect waste system is an innovative Products solution by BLANCO that is customised to fit the size of the base unit - and the Customer service customer‘s requirements. As the systems fit in any 30, 45 or 60 cm wide sink cabinet, Technology they can be added to any sink cabinet at any time to create order and clarity.

Cleaning/care products BLANCO offers a range of cleaning/care products that are specially designed for their sink materials. They are made in accordance with the terms of the Detergents and Cleaning Products Act. Because the sink materials are inherently easy to clean, only small amounts of detergent are required.

Packaging It goes without saying that packaging materials should be as environmentally neutral as possible. A works standard on this subject came into force in 2000, approving cardboard packaging and PE foils as packaging materials. The use of polystyrene increased as the requirements for stability of the packaging changed. Not only did it reduce the amount of damage during transportation and the costs for replacements, but polystyrene also had a number of advantages compared with other packaging materials: it is easy to recycle and, thanks to its low inherent weight, reduces the amount of energy required for transportation.

Transportation damages in percent

As always, though, the rule is only to use as much plastic for packaging as is absolutely necessary. It is easy to separate the individual packaging materials so they can be recycled appropriately.

Needless to say, BLANCO accepts all the costs for the customer‘s disposal of these materials in accordance with the packaging ordinance.

17 Products and Customer service technology BLANCO also offers a range of additional services for trade partners. The training courses for sales staff and correct installation are very popular, and the courses at Products the training centre in Oberderdingen are a special highlight. Customers can go online Customer service to order spare parts, accessories and cleaning/care products from „SOS“, our online Technology service system.

All shipments have been made through our logistics centre in Bruchsal since 2011. This bundles the shipping volume and reduces the CO2 level, as there is less traffic associated with the logistics services.

In the past, any returned sinks were forwarded to Bruchsal so the reasons for the complaint could be evaluated. Since then, however, our customer services technicians have been trained in evaluation so that returns are only necessary in specific cases. It is important to establish the reasons for the complaint, since that can provide us with information we can then use to improve our products, packaging and logistics.

18 Technology Products and The automation of manufacturing processes has been a subject for discussion in the technology industry for decades. At BLANCO, increasing quantities was usually the reason for automation. Due to spatial restrictions in the locations, any increase in capacity usually Products had to be achieved on the same area. Examples of this are cleaning, finishing (applying Customer service the foam sealant and attaching fixing brackets), labelling and packing the stainless steel Technology sinks in the middle segment, inserting composite sinks in the milling machine and cleaning system, and stacking the packaged sinks. Part automation of the casting process in the composite sink production division commenced at the end of 2011. Workplace design was just as important in the production concepts as increasing productivity. In Sinsheim, for instance, some members of staff have been working in physically deman- ding positions for over 20 years. These individuals should benefit in particular from the relief provided by automation.

„E+S“, the team responsible for environmental care and occupational safety, is involved in the selection of new systems and in the design and evaluation of production processes. The process „Evaluation of work equipment, procedures and processes“ controls the sequence and leads to an evaluation of environmental aspects. The environmentally relevant systems are included in a system register. It also manages the completed measurements, such as the exhaust systems and waste water treatment plants.

„ExiSt“ – Excellence in Steel – is the motto for the comprehensive redesign of the production sequences in Sulzfeld. Returning the entire production area for SteelArt sinks to the Sulzfeld works in 2010 entailed the redesign of several production processes: • Increased use of laser technology in welding processes • Optimisation of the grinding processes for reworking welded seams using modern machines and sanding belts • Enclosure of production processes to avoid danger from optical radiation and emissions • Stainless steel blanks allocated in an automated shelving system (paternoster lift) • Optimum utilisation of exhaust systems and adjustment of air quantities to requirements. This reduces the amount of energy required for the systems and the costs for heating the air.

BLANCO‘s R&D department has further optimised the formulations for its composite sinks in the past two years. Using „natural sands“ instead of dyed granules meant that one existing silo could be reused. This means that a large proportion of the sands are now delivered in silo vehicles instead of Big Bags.

The construction of a second tank in Sinsheim for the raw acrylate material for the composite sinks increased both the capacity and the level of safety by making other systems redundant.

19 Effects on the Energy environment The ENERFIT programme that was established in 2008 has been further developed in the past two years. Many of the possible improvements that had been identified are already in the projection or implementation stages. Energy Electricity

Solar energy Electricity Heating oil / natural gas

Compressed air More and more areas are being connected to the central building control system. Waste However, this can only be done if the corresponding measurement options have been Water / waste water installed. Emissions

Transport / traffic The electricity consumptions of all the locations can be called up at any time on the Soil online electricity consumption portal. This helps us to identify output peaks and major Raw materials and supplies electricity consumers, but also indicates where electricity is being wasted. New software helps by recording consumption.

The air quantities of the exhaust systems have been adjusted to actual requirements, especially in Sulzfeld. The focus was on saving energy for the operation of the exhaust systems and for heating the fed-in air in winter, and in particular observing the workplace limits for staff.

Particular attention was paid to switching off equipment in downtimes. These systems were automated if possible; otherwise equipment operators are asked to cooperate.

The coffee/tea kitchens in many of the buildings were redesigned and fitted with new fully automatic coffee machines. This helped to reduce the „proliferation“ of coffee machines and the high energy consumption that resulted from having numerous machines. One side effect of bundling is the reduction in the risk of fire.

The works in Canada now only uses low-energy bulbs. As the result of a programme introduced by the Ontario Power Authority in 2011, 70,000 kWh are saved annually.

The use of frequency converters and more efficient motors on various systems also helped to reduce energy consumption.

Exterior lighting was changed to low-energy sodium bulbs; LED lights are currently being tested. Timed, motion or daylight-controlled lighting has already been installed in a number of halls. The possibility of changing the hall lighting to LEDs is also being investigated, although it is not yet possible to achieve adequate lighting with the currently available technology.

20 Solar energy Effects on the The plans for the construction of the new logistics centre in Bruchsal included a solar environment system on the roof. This made it instantly possible to heat cold water using solar energy. The photovoltaic system was to follow as quickly as possible. The available tech- nologies and installation procedures were closely compared. It transpired that slightly Energy staggering the installation had significant advantages. The latest technology enables Electricity solar modules to be set up without penetrating the roof membrane. This is important Solar energy for achieving a certain amount of flexibility concerning the period of use and maintaining Heating oil / natural gas the seal on the roof. The weight of comparable modules including their fixation elements Compressed air has been reduced by almost 50% over the past 3 years. Otherwise there was a signi- Waste ficant increase in energy yield. The installed modules are monocrystaline in structure, Water / waste water which means the yields are particularly good even in low-light operation. Emissions Transport / traffic There are 3680 modules on the 16,000 m² of the roof with a peak output of 900 kWp. Soil The system relieves the atmosphere of more than 600 metric tonnes of carbon dio- Raw materials and supplies xide emissions every year. In terms of the average electricity consumption of private households, the 933,000 kWh/a of energy produced by the photovoltaic system could supply around 250 four-person households with environmentally friendly electricity.

21 Effects on the Heating oil / natural gas environment Heating oil is used for heating the offices and production halls, and for hot water, in Oberderdingen, Sinsheim and Sulzfeld. Natural gas is used for heating in Bruchsal. A solar system provides the hot water here. Energy Improvements in the building insulation continued with the renovation of the administra- Electricity tion building in Oberderdingen and the refurbishment of a further hall roof in Sulzfeld. Solar energy Other building work is being planned, and includes the administration area in Sinsheim Heating oil / natural gas and the removal of the container office in Oberderdingen. Compressed air Waste A number of heating pumps were replaced by high-efficiency pumps with rev controls. Water / waste water At the same time, flow temperatures were lowered and time controls fitted. Emissions Transport / traffic The heating oil consumption for heating the building is still declining. Installing level Soil indicators and connection to the central building control system will make it possible to Raw materials and supplies evaluate deflections in some of the locations from 2012. The aim is to achieve the appropriate heating in the rooms and production halls. Some rarely frequented warehouse halls are being heated less. Heat recovery means that heat can be reused; implemented for instance in Sinsheim in a dry cooling system or in ventilation systems, it has also been possible to reduce heating energy.

Heating oil consumption for heating the building

* Bruchsal: 2008 Occupation of the new logistics centre Oberderdingen: first itemisation by company in 2008

The increase in energy consumption on the production sites in 2008 was due to a significant increase in production and the associated longer manufacturing times.

The diesel pumps for the sprinkler systems in Bruchsal and Sinsheim have to complete a weekly trial run.

22 Heating oil consumption in Sulzfeld for the production processes is at a consistently low Effects on the level. This is partly due to loads, but largely to the optimisation of production sequences and processes. Most energy is required for heating the cleaning processes for stainless environment steel sinks. The possibility of bundling the existing heating systems in a combined heat and power plant is being examined in an overall concept for cooling and heating in Sulzfeld. Energy Electricity Heating oil consumption for production processes at the Sulzfeld plant Solar energy Heating oil / natural gas Compressed air Waste Water / waste water Emissions Transport / traffic Soil Raw materials and supplies

The overall energy requirement for the production of a composite sink in Sinsheim has remained stable at a low level for years. The slight increase in 2009 was due to the significantly lower quantities, because certain consumptions such as heating or air conditioning for halls are not linked to production quantities. The air conditioning in Sinsheim is necessary because the production processes are highly dependent on temperature. Higher hall temperatures can change the polymerisation reaction, which in turn results in more waste.

Total energy consumption per sink at the Sinsheim plant

kWh/sink

Natural gas is used for heating and cooling in Canada. Changing the cooling from com- pressors to fresh-air cooling for 7 months of the year enabled the company to reduce its energy consumption by 400,000 kWh a year.

23 Effects on the Compressed air environment In Sulzfeld, a modern compressor now provides the exact amount of compressed air. Reducing the pressure in the mains network has proved successful and will be continued, as will the regular checks for leakages during system downtimes. Energy Electricity Solar energy Heating oil / natural gas Waste Compressed air Waste All of the waste at the distribution centre in Canada is collected in separate containers Water / waste water and recycled. The company‘s own baler compresses cardboard boxes which can then Emissions be sold on to a recycler. Almost all of the waste from the plants in Germany is also re- Transport / traffic cycled. Potentially risky waste, such as oils or solvents, is recycled in modern systems. Soil Raw materials and supplies The following graphic illustrates the development in waste quantities per manufactured sink in Sinsheim. This is based on the amount of waste that is associated directly with the produced sink blanks. The slight increase in the past two years is the result of changes in some of the raw materials, and the further increase in variance in colours and in the quantities made in sequence on one tool.

Waste development per produced sink at the Sinsheim plant

kg/sink 4,00

3,50

3,00

2,50

2,00

1,50

1,00

0,50

0 3,42 2,75 1,75 1,35 1,38 1,26 1,62 1,51 2004 2005 2006 2007 2008 2009 2010 2011

Separating the waste is essential for efficient recycling. If at all possible, waste is first to be avoided. The labelling and colour coding of the waste containers makes it easier for staff to sort waste, and reduces mistakes. It is particularly important to keep and sort hazardous waste separately. Special storage facilities are available in Sulzfeld, Sinsheim and Oberderdingen for flammable waste.

24 Water / waste water Effects on the In Bruchsal and Oberderdingen water is only used in social areas. The Sinsheim and environment Sulzfeld plants operate cleaning stations for the sinks. There is as yet no differentiation between water quantities for the various areas. At the moment, the options for moderni- sation of the entire drinking water supplies are being investigated. It will also be possible Energy to observe individual major consumer units more closely at the same time. Electricity Solar energy The company‘s waste water purification system in Sulzfeld is still in operation. The Heating oil / natural gas amount of water being treated continues to decline. Other projects had to be given Compressed air priority over the installation of water-free technology in the older of the two cleaning Waste stations for stainless steel sinks, but remain a declared target. Water / waste water Emissions Water consumption at the Sulzfeld plant Transport / traffic Soil m3 Raw materials and supplies

The increase in water consumption in 2010 was due to a burst pipe in the drinking water supply. The water consumption is now monitored by the central building control system. This means that any unusually high consumption is noted, and therefore rec- tified, more quickly.

The water used for washing the composite sinks is recirculated, and there is virtually no waste water. The water consumption is due to evaporation in the drying unit.

Rainwater from large areas of the courtyard area in Sulzfeld flows into a retention pool that is designed as a pond. The pond has been stocked with fish (carp, tench, goldfish, ide, roach) that are looked after by staff. The BBQ on the shore of the pond is available to staff.

In Bruchsal, rainwater flows from the roof into a seepage pool, in Oberderdingen it goes directly into a passing stream.

These measures reduce the amount of rainwater that flows into the communities‘ se- wage works.

25 Effects on the Emissions environment Emissions from hazardous substances, dust and noise in the production workplaces are reduced as much as possible by the following measures: • Room and object extractions, some with extractor systems Energy • Housings • Closed production processes Electricity • Substitutions for hazardous substances Solar energy • Use of processes, systems and equipment with low emissions Heating oil / natural gas Compressed air The legally required measurements of the workplace concentration of hazardous sub- Waste stances and of the noise level are carried out in all the relevant workplaces. The results Water / waste water are recorded in a comprehensive registry. The aim is to keep emissions as low as pos- Emissions sible for staff - and well below the levels required by law. Transport / traffic Soil Ear protection is compulsory for staff working in some of the areas with noisy Raw materials and supplies procedures. Options for reducing noise levels are regularly sought here in line with noise reduction measures.

Dust, substance and noise emissions into the environment are monitored.

Transport / traffic

All BLANCO‘s goods are transported by forwarding agents. When contracting, we look for modern, low-emission vehicle fleets. All our main service providers use vehicles that are equipped in accordance with the EURO 5 standard.

In order to fully utilise the loading height of trucks, it is accepted in logistics that pallets need to be repacked in the logistics centre before being stored on the shelves. Four ceramic sinks arrive from Istanbul stacked on top of each other, but only three can be stored on the shelves. Repacking is still economical and environmentally friendly, as this means that more sinks can be transported in the truck per freight.

Stainless steel waste is loaded onto the rail track at the company‘s own loading point in Sulzfeld and taken directly to the steelworks.

The company car guideline now prescribes both the amount of fuel consumed and the

maximum permitted CO2 output. The guideline is adapted to the state of the art every year. Rail travel is preferred for longer business journeys.

Meeting rooms in Oberderdingen, Sinsheim and Toronto contain the technical equipment required for video conferences. This means that staff are able to take part in

meetings on large screens, rather than cause considerable CO2 emissions by travelling by air or car.

Another popular system is Netviewer, software that transmits screen contents via the Internet. This means that screen contents can be shared with any user who has Internet access - even users outside the BLANCO network.

The new bicycle storage facility in Sulzfeld encourages staff to „get on their bikes“ to come to work.

26 Soil Effects on the Measured by the standards of the time, perchloroethylene was until the 70s the best environment and most recommended degreasing agent. As it evaporates easily and does not burn, it was easy to handle. Much later it was found out that perchloroethylene can damage the health, and easily penetrates even concrete. BLANCO‘s stainless steel Energy products have to be greased for the production process, and so have to be degreased Electricity afterwards. Chlorinated hydrocarbons („Per“ and „Tri“) were used for this purpose in the Solar energy 60s and 70s. For many years, work has been underway in Sulzfeld and Oberderdingen Heating oil / natural gas to balance the damage caused to the soil and groundwater by the degreasing plants. Compressed air Waste Water / waste water Sulzfeld Emissions Since 2002, the excavations for a construction project have been rehabilitated by Transport / traffic phytoremediation (the biological breakdown of chlorinated hydrocarbons by plants; Soil BLANCO uses poplars). Soil samples taken in 2010 confirmed the excellent progress Raw materials and supplies of this rehabilitation. The project will probably be concluded in a few years‘ time.

Filter pipes have been laid at a depth of 5 to 8 m at the centre of the contamination, and air is drawn through them. The air, which is enriched with hazardous materials, is cleaned by active carbon. The decontamination plant was converted in 2010. It was adjusted to the significantly lower discharge quantities.

Any contamination that has penetrated as far as the groundwater is rehabilitated by pumping off the groundwater and then cleaned with active carbon.

It is not yet known when the decontamination measures will be complete.

Oberderdingen Investigations carried out in 2010 and 2011 showed that there is no soil or groundwater damage on the premises of BLANCO GmbH + Co KG that requires decontaminating. Due to the spatial proximity to the premises of BLANCO CS GmbH + Co KG and E.G.O. GmbH, extensive investigations were required in order to establish the causes. The groundwater cleaning system mentioned in the last report is still in operation. It is under the control of BLANCO CS GmbH + Co KG and E.G.O. GmbH.

The measures are all carried out in coordination with the area administration. The owners of the neighbouring properties and the community are included in the process.

27 Effects on the raw materials and supplies environment At home in Germany, BLANCO also feels committed to the region when awarding contracts to service providers. There are often relations and contracts that last for many years. The focus is on partner reliability and integrity. Preference is given to Energy suppliers and service providers from the region, as long as this is economically viable. The purchasing department commits all suppliers to observing the list of banned Electricity substances and substances to be avoided. This list can be found in the suppliers‘ Solar energy portal in the Internet, and reflects the current legal situation. One particular challenge Heating oil / natural gas that the coming years will bring is the various requirements associated with the REACH Compressed air Directive. The European chemical law is testing more and more materials. This can Waste result in some materials disappearing from the market because the manufacturers are Water / waste water unwilling to accept the costs for approval. BLANCO checks in good time to ascertain Emissions whether their auxiliary and operating materials contain any critical substances in order Transport / traffic to search for alternatives with the suppliers if necessary. Soil Raw materials and supplies BLANCO Canada aims to purchase all its necessary raw materials in North America and minimise transportation routes. The company has gone a long way towards achieving this goal in recent years. As the controlled polymerisation process of the composite sinks depends largely on the quality of the raw materials used, extensive testing is required before approved raw materials can be replaced.

28 Apprenticeship Employees

At 31.12.2011, BLANCO was providing training for 47 youngsters, 31 trainees and 16 students from the Co-operative University. BLANCO sets the very highest stan- Apprenticeship dards in training so that it can recruit the next generation from its own ranks. When Special commitment to they first start their training, the trainees find out more about the company‘s guidelines, the next generation structures, products and productions during their orientation week. They learn social and method competence as well as professional competence. Teamwork, organisati- Advanced training on, communication and presentation are on the agenda at training camp. The trainees‘ Working time models social competence is developed during their first year of training in a „social week“. Childcare The trainees provide a week‘s support for a social/non-profit institution such as the Partial retirement Seniorenzentrum Haus Edelberg in Oberderdingen, the Tafelladen Bruchsal, the Bretten Events for staff kindergarten for children with disabilities or the Lebenshilfe Bruchsal-Bretten facility. Anniversary celebrations Retirement celebrations Second-year trainees and DH students spend a day on a high ropes course to encou- Introduction of company clothing rage team performance. In feedback sessions after the events, the trainees discuss Canteen observations and experiences. The aim of the feedback is to put into practice what has Accident prevention been learnt, and implement it in daily working life. Health management Sports Trainees work in a number of self-organised teams, such as the trade fair team, the „6S project team“ and our young enterprise – BLANCOjuniorshop – to develop responsibility and initiative.

Trainees on the trade fair team organise recruiting events. This includes the trade fair layout, which should address the „young target group“. The trainee task teams are compiled by trainees. The concept is passed on from year to year, which calls for a high level of teamwork, resource planning, information and communication from an early stage.

The „6S project team“ consists of commercial trainees from the second year of training. The team‘s aim is to introduce „6S“ in BLANCO‘s offices. Under the motto of „Cleanliness and order“, the trainees train administration staff on the subject, and help tion isa C om la st ri with the introduction of structures and standards. The level of success is measured u ty C

permanently in pre- and post-audits.

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p The BLANCOjuniorshop is a fixed part of trainee and DH student training. The junior e i

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operation level is not only intended to be a valuable part of training, but to make im- i

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portant training content tangible through the active operation of the company. Like s

a classic company, the junior operation has an organisation chart with all the main

departments. The trainees take over as heads of department. The fact that they are C z

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a then involved in this project by their own responsibility is a tremendous success for the s t s S

whole company.

The focus is on the development, production and marketing of own products through the BLANCOjuniorshop. The products appeal for their quality. Every item is handmade, which means they are all unique.

Attractive products such as a book rest, clothes hangers, BBQ tongs and shoe horns are thought up in the think tank. An elegant wine holder and bottle of regional red wine were sold as a Christmas offer. And quite literally went down extremely well - stocks sold out very quickly.

29 Employees Special commitment to the next generation

Heinrich Blanc Sponsorship Award 2011 The Heinrich Blanc Sponsorship Award was presented for the fifth time in 2011. The Apprenticeship prize is worth € 5000, and is presented in Special commitment to acknowledgement of excellent Bachelor‘s the next generation or Master‘s theses, or similar final papers, Advanced training with innovative product ideas, product Working time models concepts or management strategies that Childcare make an important contribution to the re- Partial retirement inforcement of small- and medium-sized Events for staff companies in Germany. Anniversary celebrations Retirement celebrations Introduction of company clothing Canteen Accident prevention Health management American Field Service (AFS) Sports BLANCO encourages intercultural encounters, and every year sends one or two youngsters abroad for a year in association with the AFS. The partial scholarship is available to youngsters in the region who wish to spend a year living abroad. They learn about the company before they depart, and there is a final presentation and experiences are exchanged on their return.

„Girl´s Day“ BLANCO is particularly keen to see women in jobs that used to be thought of as “only for the men”, and so it participates in the national „Girls‘ Day“ initiative. Young girls are given an insight into the facets of metal processing, and work on a project with the support of trainees and trainers. They are also given information on everything to do with BLANCO and their options for technical training professions.

TECHNOlino TECHNOlino is based on an initiative by Südwestmetall, and is intended to introduce very young children to the natural sciences and technology. BLANCO cooperates with nine regional crèche facilities, where research corners have been set up and scientific experiences are carried out. The children also visit BLANCO‘s training centre to learn about metal properties through play – the programme includes bending, drilling, filing, scratching and hammering.

30 Advanced training / qualification Employees

Its staff is the most important factor in BLANCO‘s success. Active encouragement is an important contribution to achieving the company‘s goals. The focus is on individual Apprenticeship concepts that take the employees‘ requirements into account and encourage strengths Special commitment to for active personal development. The requirement for advanced training is established the next generation in talks about performance and objectives. Advanced training The new database is an intuitive IT tool that can be used to book internal training Working time models courses and external offers of measures from training partners. The programme is tai- Childcare lored to BLANCO‘s requirements, and contains measures in the fields of professional Partial retirement competence, method competence, management and health. The programme has re- Events for staff cently been increased, in particular the offer. The focus is on emotional and physical Anniversary celebrations fitness. Retirement celebrations Introduction of company clothing Another important factor in personal development is the implementation of BLANCO Canteen corporate standards, team development, coaching, internationalism, languages and Accident prevention special professional excellence. The qualification offensive „BLANCO Ada-Schein“, Health management which qualified the company‘s training officers as BLANCO Trainee Coaches, has been Sports a tremendous success. Around 50 members of staff have taken up the internal offer in the past three years.

The BLANCO management programme was launched in September 2011. The focus is on the further development of management staff and on current topics such as personnel management, management by objectives, matrix communication, strategic thinking, change management, and motivating and encouraging staff. The programme is long-term, and covers every management level. The aim of the programme is the long-term development of management, and the professionalization and improvement of cooperation.

BLANCO supports employees with a migration background in a language qualification programme. We offer staff free language courses in German in order to improve cooperation and make them feel more integrated in the company by improving communication. Providing specific support for migrants, in particular in the working world, is going to be of increasing importance, in particular in the light of demographic developments.

Working time models

Various working time models have been implemented at BLANCO by agreement with employees and the Works Council. We offer 2, 3 and 5-shift operations, and production areas with only early shifts. Our 5-shift operations work 24 hours a day, 7 days a week.

„Flexitime“ is available for indirect and direct employees with whom a flexitime option has been agreed. Employees are free to decide when to start and end their daily working time.

Non-tariff staff work on trust, which means they are responsible for their daily working time – no time records are kept – and do so in line with their contract of employment and the current rules on flexitime.

31 Employees Childcare

Balancing family and work is an issue that is of particular importance to BLANCO. The company has been supporting crèche places since 2009 so that the children of Apprenticeship employees from other communities or towns who would not be entitled to a place in Special commitment to a crèche there can be accommodated in Oberderdingen. BLANCO subsidises every the next generation crèche place that is taken up by an employee‘s child. Advanced training Working time models Parents have the option of choosing between a crèche place with extended opening Childcare times, all-day care and a mixed-age group. Places can be booked on two, three or five Partial retirement set days per week. Events for staff Anniversary celebrations The first children of BLANCO staff are already being looked after in a crèche. This shows Retirement celebrations that there is a need for childcare, and that it will be used more and more. Optimum Introduction of company clothing support can be given to combining family and profession – and parents can be sure that Canteen their children are being well looked after. Accident prevention Health management Sports Partial retirement

In 2010 and 2011, any interested members of staff who met the requirements for partial retirement were offered a partial retirement contract. At 31.12.2011, BLANCO had a total of 72 of these partial retirement contracts.

Events for staff

Staff from every Oberderdingen location come to join in the annual end-of-year celebrations. The annual summer party in Oberderdingen is another opportunity to get to know colleagues away from work. In 2011, BLANCO CS surprised the attendees with a show creation of 400 desserts by five top chefs from the German National Team of Chefs. They were preparing for the „IKA – Olympiade of Chefs 2012“, and among the novelties they demonstrated was molecular cuisine in the form of a sweet wine sorbet that had been flash frozen in nitrogen. Performances by artists and the opportunity to „shake a leg“ on the dance floor completed the event.

Canada thanks its workforce with two annual barbecues and a Christmas meal at the end of the year – which also includes little gifts for everyone. The Canadians celebrate birthdays with cake.

„We all live Blanco“ Frank Straub

32 Anniversary celebrations Employees

Every autumn there is an anniversary celebration for employees who have been with the company for 25, 40 and 50 years. Burg Ravensburg in Sulzfeld is the delightful setting Apprenticeship for the management to receive guests and their partners, and they are acknowledged Special commitment to in a personal speech by their direct manager. the next generation In recognition of their tireless efforts and years of commitment, these members of staff receive a gift from the company and a certificate from the Chamber of Commerce and Advanced training Industry. Working time models Countless culinary highlights and the musical accompaniment guarantee that no one Childcare will forget the evening in a hurry. Partial retirement Events for staff Canada acknowledges 5, 10, 15, 20 and 25 year company anniversaries with gifts and Anniversary celebrations bonuses. Retirement celebrations Introduction of company clothing Canteen Retirement celebrations Accident prevention Health management Every two years there is a party for pensioners, which is an opportunity to meet up with Sports former colleagues and the management.

Due to the pleasingly large number of guests – there were 310 in 2011 – the celebration has for years been held in the Aschingerhalle in Oberderdingen. Buses are laid on to take participants from their home towns to the venue. The celebration starts with coffee and cake, and is rounded off in the evening by a buffet meal and fringe programme.

Introduction of company clothing

The company‘s employees represent the company they work for, and so we have decided that all staff in the production departments should wear the same company clothing, which will be provided free of charge.

Canteen

An external catering company with the JOB&FIT seal of the Deutsche Gesellschaft für Ernährung e.V. (DGE) runs the company‘s two restaurants in Oberderdingen. Staff are offered one JOB&FIT dish every day that is guaranteed to be a balanced and healthy choice.

Staff at Sulzfeld and Sinsheim can pre-order meals from a catering service in advan- ce. Staff at Bruchsal are welcome to use the excellent canteen run by a neighbouring company.

Canada runs healthy eating programmes with nutritional and health advice, and they are to be further developed in 2012.

33 Employees Accident prevention

One figure that reveals a company‘s accident situation is the number of reportable accidents at work per 1 million working hours. Due to the high risks inherent with sharp- Apprenticeship edged stainless steel sheets, this figure has always been high at BLANCO. The inten- Special commitment to sive search for the best possible material for gloves for the many different requirements the next generation here has resulted in a dramatic drop in the accident rate since 2010. As always, most Advanced training accidents are to the hands and arms, and the consequences of tripping and falling. Working time models Childcare Reportable working accidents: 2008 2009 2010 2011 Partial retirement Events for staff per 1 million working hours 31,84 36,74 23,10 22,81 Anniversary celebrations absolute figures 49 49 30 28 Retirement celebrations Introduction of company clothing Canteen Unfortunately, the options for influencing the quantity and severity of accidents on the Accident prevention way to work are a little more limited. Driver safety training required by the professional Health management association offers employees the opportunity to learn how to control their vehicles even Sports in difficult situations, and is an important factor in prevention. Driver safety training is included in our trainees‘ training schedules, and is a very popular option.

Health management

BLANCO has been addressing the subject of health for some time because the popu- lation is going to have to work longer due to demographic change and because fewer junior employees are being taken on.

In the best case, specific preventative healthcare can help to avoid many diseases if they are detected early enough. Together with our sister company E.G.O., BLANCO operates a company medical service with two occupational health practitioners and two medical assistants. This means that any statutory occupational health screening can be provided here, on our own premises. This includes regular checks for forklift drivers, staff who work at a computer screen, testing the hearing of staff who work in noisy areas, and the required examinations of staff who work with certain hazardous substances. In Canada, statutory occupational health screening is carried out in coordination with the Ministry of Labour.

In addition to the company medical services, on certain days of the week staff can also visit a dentist on the E.G.O. site. As well as offering regular dental checks and hygienist services, the dentist also provides dental treatment that is covered by employees‘ statutory health insurance.

Pre-employment medical examinations are compulsory for new BLANCO employees. The reintegration of employees after a long illness is extremely important. In 2011, a health steering committee was set up to control strategic health issues. Representa- tives from HR, the works council, occupational safety, the medical services and the various sites meet at regular intervals.

In Bruchsal, initial measures arising from the completion and analysis of a staff survey have been implemented, and a health team has been set up with representatives from the workforce.

Healthcare is extremely important to BLANCO. The company works on behalf of its employees in several areas.

34 In 2011, BLANCO carried out its second bowel cancer prevention campaign. Staff Employees were told about the screening programme in posters and notices. February‘s pay slips included a letter telling staff about the reasons for the campaign and how it would be carried out. Employees were able to request a test kit from the co-operations partner Apprenticeship straight away. A total of 135 employees ordered the test kit. The returns rate was 58%. Special commitment to BLANCO paid all the associated costs. the next generation

BLANCO is offering skin cancer screening for all staff for the first time in 2012. Staff will Advanced training be informed of the campaign in the middle of 2012 in notices and posters, and also in a Working time models personal letter to be included with their payslips. Dates are scheduled with an external Childcare dermatologist in all the works. Partial retirement Events for staff Both in Germany and in Canada, inoculations are also a part of workplace health pro- Anniversary celebrations motion, for instance if travelling abroad on business, or the annual flu vaccination. Staff Retirement celebrations who are travelling abroad on business can also be given a travelling first-aid kit, and Introduction of company clothing receive extensive advice on the country they are going to from medical services. Canteen Accident prevention Smoking is banned in all BLANCO buildings. The only exceptions are a few marked Health management smoking areas, special smokers‘ cabins (with air filtering) and smoking rooms. Once a Sports year, BLANCO offers a stop smoking course to help make it easier for staff who wish to quit. A complete ban on alcohol was issued in 2008. Managers can approve exceptions for specific celebrations at their discretion.

Due to increasing demands in today‘s working society, the upper management level was trained in recognising stress and strain in staff. BLANCO is also in contact with a psychologist whom managers can refer to specific members of staff if they suspect there is a need.

The integration of the seriously disabled in the working environment is regulated by law. Here too, BLANCO is aware of its commitment to people in the region. The proportion of severely disabled employees was 4.3% in 2011. BLANCO also supports Lebenshilfe Bruchsal-Bretten by allocating contracts to them.

Sports

BLANCO is increasing its offer of exercise in order to prevent back complaints. In addition to the back school for beginners and advanced practitioners in Oberderdingen, the logistics centre in Bruchsal has also been offering a course of spinal exercises on its premises that is extremely popular both with staff and managers on shift changeovers. Other staff prefer to take advantage of the cooperation with a regional gym.

Company sports groups for Nordic walking and jogging are currently being set up in Germany. If any groups or individuals book to take part in specific sporting events, BLANCO will support them by paying the fees and providing some of the equipment.

A „Walking Club“ was founded in Canada in the spring of 2011. Here too, the company subsidises memberships for any staff and their families who join a local fitness club.

35 BLANCO GmbH + Co KG Flehinger Strasse 59 D-75038 Oberderdingen Germany Tel.: +49 (7045) 44-81100 Fax: +49 (7045) 44-81299 www.blanco-germany.com [email protected] 06-2012 · printed on Inapa Infinity silk FSC Mix Credit GFA-COC-001147 06-2012 · printed on Inapa Infinity silk FSC Mix Credit