CONNECT.
HALF-YEAR REPORT 2021

DOUBLE-DIGIT ORGANIC SALES GROWTHDISPROPORTIONATELY HIGHER OPERATING PROFITGROUP PROFIT DOUBLEDGUIDANCE INCREASED FOR FULL YEAR 2021

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FORBO HALF-YEAR REPORT 2021

The Forbo Group – a leading manufacturer of floor coverings, building and construction adhesives, as well as power transmission and conveyor belt solutions –reported net sales of CHF 623.1 million in the first half of 2021 (prior-year period:
CHF 542.3 million), representing a gratifying increase of 14.9% (14.3% in local currencies). ­Operating profit (EBIT) rose to CHF 82.1 million (prior-year period: CHF 41.1
million), an almost twofold increase. The EBIT margin improved significantly to
13.2% (prior-year period: 7.6%). Group profit doubled to CHF 63.5 million (prior-year
period: CHF 31.7 million).

Dear shareholders,
Forbo made a good start to 2021 despite the ongoing COVID-19 pandemic. The first half of the year saw a continuation of the positive trend recorded in the fourth quarter of the previous year. The markets continued to revive,
despite the fact that locally occurring outbreaks of COVID-19 around the world operationally challenged us again
with new short-notice restrictions.
Demand rose in many markets and customer segments. Our strategy of offering high-quality products and services rather than simply expanding into volume business proved successful during these challenging times. Also
under such special circumstances, we developed application-specific innovations and brought them to the market.
Our globally oriented market position, our strong brand and our long-standing, close customer relationships
helped us participate quickly and efficiently in the upswing.
Operating profits and margins increased significantly in the first half of 2021 and showed a disproportionate growthcompared to sales. This was primarily attributable to the substantial impact of the COVID-19 pandemic in theprior-year period, when from February onwards we were confronted, unexpectedly at the time, with full lockdowns
imposed at extremely short notice. Businesses forced to shut down, interruptions to supply chains and canceled
or indefinitely postponed customer projects were the order of the day. In many instances this was happening incountries where we have major production plants, assembly centers and sales organizations. This had a significant
negative impact on operational efficiency and productivity in the first half of 2020. At the same time, it was important for us to protect the health of our employees with hygiene and protection measures and adjustments to work
processes, causing additional expense. During this period, we adapted our operating structures and processes tothe prevailing circumstances.
Over the past months, due to the gratifying growth in sales, we have been able to improve utilization of our
production and assembly sites considerably, which has resulted in disproportionately higher margins. The sharp
increase in prices for raw materials since the end of 2020 had for now only a limited impact on the first half of2021, but will significantly more affect earnings in the second half-year.
Double-digit sales growth in all regions
In the first half of 2021, Forbo achieved a substantial growth in sales of 14.9% to CHF 623.1 million (prior-year
period: CHF 542.3 million), which equates to an increase of 14.3% in local currencies. Adjusted for currency effects,
this offsets the downturn from 2020. All regions contributed to this growth in local currencies: by + 14.0% in Europe,+ 12.9% in the Americas and + 17.7% in Asia/Pacific. We are still periodically affected by COVID-19 restrictions insome local markets. In most cases, the markets which were heavily affected in the prior-year period recorded thehighest increases in sales. Individual customer segments have seen varying degrees of recovery. Sales orders in
the gastronomy sector was an area to show only a moderate level of recovery, a trend that applied to both divisions.
For Flooring Systems it affected floor coverings for restaurants, hotels and bars. For Movement Systems it was
food-processing companies in the system catering.

FORBO HALF-YEAR REPORT 2021

3

Translation of local sales into the corporate currency reveals the different developments in the individual currencies. Flooring Systems recorded a generally positive currency effect, whereas for Movement Systems the currencytranslation effect was negative overall on account of the greater share made up by the weaker Japanese yen andthe US dollar.
Flooring Systems reported sales growth of 15.5% in the corporate currency (14.0% in local currencies). Projects in
the healthcare and education segments are on the increase, while demand remains moderate particularly in theoffice space and retail segments, as well as in the gastronomy business.
Movement Systems achieved a sales increase of 13.6% in the corporate currency (14.8% in local currencies). This
growth was driven in particular by the logistics segment with its expansions in e-commerce, mail distribution
centers and global courier services, as well as by a return to increased operations at airports. Renewals in the industrial production segments showed a further increase; sales of sports treadmills for fitness centers are recovering
hesitantly, however.
Disproportionately higher profitability
Operating profits increased sharply in the first half of 2021 and showed a disproportionate growth compared tosales. This effect was attributable in particular to increased utilization of production capacity to meet the growthin sales and improved productivity driven by the optimization of operating structures, and also to the cost reduction measures implemented in the second quarter of 2020. The effect was counteracted by higher prices for raw
materials.
Operating profit before depreciation and amortization (EBITDA) came to CHF 109.9 million (prior-year period:
CHF 68.4 million), corresponding to an increase of 60.7%. The EBITDA margin increased to 17.6% (prior-year period:
12.6%). Operating profit (EBIT) almost doubled to CHF 82.1 million (prior-year period: CHF 41.1 million). The EBIT
margin rose to 13.2% (comparable prior-year period: 7.6%).
Group profit
On the basis of the substantially higher operating profit, Group profit doubled to CHF 63.5 million (prior-year
period: CHF 31.7 million). Earnings per share (undiluted) increased by 104.2% to CHF 40.52 (prior-year period:
CHF 19.84).
Equity ratio remains strong
Equity at the end of June 2021 stood at CHF 677.7 million (year-end 2020: CHF 683.5 million). The equity ratio was
60.0% (year-end 2020: 61.5%).
Solid balance sheet
Net cash came to CHF 182.4 million at end of June 2021 (year-end 2020: CHF 255.9 million). The decline wasmainly due to the dividend payment and the share buyback. In addition, Forbo held treasury shares worth CHF
189.0 million, based on the share price at the end of June 2021 (year-end 2020: CHF 107.4 million based on theshare price at the end of 2020). CHF 56.4 million of these are marked for cancellation as part of the share buyback
program.
Performance of the divisions
The Forbo Flooring Systems division reported net sales of CHF 423.1 million in the first half of 2021 (prior-year
period: CHF 366.2 million). All three regions reported double-digit sales growth in local currencies: Asia/Pacificshowed the highest increase, followed by Europe and, slightly less, the Americas. In Europe, France, Italy and Spain
benefited the most from the surge in demand. Great Britain also recorded a significant market recovery. Germany,
the Netherlands, Switzerland and Eastern Europe reported a solid increase in sales. Most Nordic markets weremore or less flat year-on-year. Russia again grew strongly. In the Americas region, USA recovered with growth thatjust hit double-digits, and Canada also saw clear catch-up effects. In Asia/Pacific, the Chinese market grewsignificantly and smaller markets in Southeast Asia and South Korea also performed well, so did Turkey. The
building and construction adhesives activity reported very pleasing overall sales growth.

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FORBO HALF-YEAR REPORT 2021

Operating profit (EBIT) rose by CHF 68.9% to CHF 61.8 million (prior-year period: CHF 36.6 million). This significant
increase was attributable to the positive sales trend, the adjustment of operating structures and the strong operational leverage. In the second quarter of 2020 in particular, major production locations in France, Great Britain
and the Netherlands were seriously affected by lockdowns imposed at short notice and lengthy company closures.
The EBIT margin increased to 14.6% (prior-year period: 10.0%). In the coming months, further interesting collections
are set to be introduced and will be attractively marketed in combination with good global availability. At thesame time, the sharp increase in the cost of raw materials makes it necessary to adjust corresponding pricings on
our side and to remain flexible beside prudent cost management.
The Forbo Movement Systems division reported net sales of CHF 200.0 million in the first half of 2021 (prior-year
period: CHF 176.1 million). All three regions reported double-digit sales growth in local currencies: Asia/Pacificshowed the highest increase, followed by the Americas and, slightly lower, Europe. The countries worst hit by theprevious year’s slump in demand, such as Great Britain, France, Italy and Spain, reported above-average growth
rates. Most other markets in Europe, including Germany, Switzerland, Scandinavia and Russia, also reported apleasing rise in sales. In the Americas, the main market USA showed above-average growth following a strong
recovery in the first half of the year, Mexico also achieved good results. In Asia/Pacific, all markets showed sales
growth of varying degrees. The core Chinese market grew sharply, India also performed well in an environment
which remains challenging, so did Turkey. Australia, South Korea and Southeast Asia reported a solid rise in sales,
while Japan’s recovery proceeds at a slightly slower pace.
Operating profit (EBIT) more than doubled to CHF 25.3 million (prior-year period: CHF 10.2 million). This significant
improvement is due to the positive sales trend, the adjustment of operating structures and above all to thestrongly increased capacity utilization. Movement Systems was already affected in early 2020 by the then suddenconsequences of COVID-19, with our important production site in China having gone into full operation in 2019.
It was followed somewhat later by other major production and assembly sites in Germany, Slovakia and the USA,as well as many smaller local assembly and service sites. The EBIT margin came to 12.7% (prior-year period: 5.8%).
The focus for the second half-year will be on the market launch of the newly developed product line of homogeneous conveyor belts – these are primarily designed for the food industry – as well as the flexible sales priceadjustments in response to the cost increases in some raw materials, combined with a continuing prudent costmanagement.
Increased focus on implementing strategy after operational challenges
Even after this special pandemic year, Forbo has a solid capital structure, good liquidity, a robust cash flow, and is
free of debt. Our global presence and strong market positions, plus our broad, innovative and sustainable productportfolio enable us to persistently implementing our strategy. We have therefore continued to pursue all our
strategically important projects despite the difficult times. Following the operational challenges which dominated2020, Forbo will again increasingly focus on expansion in growth markets, targeted strengthening of our distribution organizations, selective capacity expansion in product lines with better-than-average growth, promoting
innovations – coupled with digitization advances – and capitalizing on external growth opportunities provided
added value can thereby be created.
Outlook for 2021
The pandemic will remain with us and will continue to have negative effects in certain areas in the second half ofthe year, albeit to a lesser extent. The significant base effect will be greatly diminished in the second half of theyear due to the good second-half performance in the previous year. Rising prices for raw materials and somebottlenecks in the availability of raw materials will be additional factors. These will be counteracted by the realized
adjustments on operating structures and processes along with attractive new products and services.

FORBO HALF-YEAR REPORT 2021

5With regard to guidance for the full year 2021, we are cautiously optimistic and are increasing our outlook on sales
and Group profit. Provided that there are no fundamental changes to the overall general conditions, we antici­pate
sales growth close to reaching double-digit growth figures and Group profit to be up to one-quarter higher thanin the previous year.

This E. Schneider
Executive Chairman

Forbo Holding Ltd
Baar, July 30, 2021

Stephan Bauer
CEO6

FORBO HALF-YEAR REPORT 2021

Consolidated balance sheet
and income statement
Condensed consolidated balance sheet
Unaudited, CHF m
AssetsCurrent assets
Cash and cash equivalents
Current financial assets
Trade and other receivables and accrued income
Inventories
Non-current assets
Non-current financial assets
Deferred tax assets
Property, plant, and equipment, intangible assets and goodwill
Total assets

Shareholders' equity and liabilities
Current liabilities
Current financial liabilities
Trade payables
Current provisions, accrued expenses, current tax and other liabilities
Non-current liabilities
Non-current financial liabilities
Employee benefit obligations, non-current provisions, and deferred tax liabilities
Total liabilities
Shareholders’ equity
Total shareholders' equity and liabilities

30.6.2021

31.12.2020

685.5
183.2
254.7
247.6
443.3
0.2
45.2
397.9
1,128.8

668.7
255.8
0.1
194.3
218.5
442.1
0.2
45.4
396.5
1,110.8

280.6
12.8
82.8
185.0
170.5
33.1
137.4
451.1
677.7
1,128.8

251.5
14.1
94.4
143.0
175.8
31.1
144.7
427.3
683.5
1,110.8

First half 2021
623.1
– 391.3
231.8– 149.7
82.1
– 0.1
82.0
– 18.563.5
63.5

First half 2020
542.3
– 346.1
196.2– 155.1
41.1
– 0.5
40.6
– 8.9
31.7
31.7

40.52
40.52

19.84
19.84

Condensed consolidated income statement
Unaudited, CHF m
Net sales
Cost of goods sold
Gross profit
Operating expenses
Operating profit
Financial result
Group profit before taxes
Income taxes
Group profit
Group profit attributable to shareholders of Forbo Holding Ltd
Earnings per share, total
Basic earnings per share in CHF
Diluted earnings per share in CHF

The accompanying notes are an integral part of the half-year report.

FORBO HALF-YEAR REPORT 2021

7

Consolidated comprehensive
income statement and statementof changes in equity
Consolidated comprehensive income statement
Unaudited, CHF m
Group profit
Items that will not be reclassified to the income statement:
Remeasurements of employee benefit obligations, net of taxes
Items that were or may be subsequently reclassified to the income statement:
Translation differences
Other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to the shareholders of Forbo Holding Ltd

First half 2021
63.5

First half 2020
31.7

7.3

0.9

20.1
27.4
90.9
90.9

– 26.2– 25.3
6.4
6.4

Consolidated statement of changes in equity
first half 2021
Unaudited, CHF m
January 1, 2021
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2021

Share capital

Treasuryshares0.2– 0.1

Reserves

0.2

– 0.1

1,032.8
63.5
7.3
70.8
2.8
– 68.1– 31.4
1,006.9

Share capital

TreasurysharesReserves

0.2

– 0.1

– 0.0

Translationdifferences– 349.4
20.1
20.1– 329.3

Translationdifferences

Total

683.5
63.5
27.4
90.9
2.8
– 68.1– 31.4677.7

Consolidated statement of changes in equity
first half 2020
Unaudited, CHF m
January 1, 2020
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2020

The accompanying notes are an integral part of the half-year report.

– 0.0
0.2

– 0.1

1,002.6
31.7
0.9
32.6
1.7
– 7.1
– 36.8993.0– 326.1– 26.2– 26.2– 352.3

Total

676.6
31.7
– 25.3
6.4
1.7
– 7.1
– 36.8640.8

8FORBO HALF-YEAR REPORT 2021

Consolidated cash flow statement

Condensed consolidated cash flow statement
Unaudited, CHF m
Group profit
Depreciation of property, plant, and equipment,
and amortization of intangible assets
Increase in net operating working capital
Other adjustments for non-cash items
Net cash flow from operating activities
Purchase of property, plant, and equipment, and intangible assets
Other cash flows from investing activities
Net cash flow from investing activities
Dividend payment
Purchase of treasury shares
Payment of lease liabilities
Net cash flow from financing activities
Decrease in cash and cash equivalents
Translation differences on cash and cash equivalents
Cash and cash equivalents at beginning of year
Total cash and cash equivalents as at June 30

The accompanying notes are an integral part of the half-year report.

First half 2021
63.5
27.8

First half 2020
31.7
27.3

– 82.726.1
34.7– 10.60.2– 10.4– 31.4– 60.9– 8.9– 101.2– 76.9
4.3
255.8
183.2

– 27.39.2
40.9– 15.6
0.5– 15.1– 36.8– 7.0– 8.5– 52.3– 26.5
– 5.5
217.7
185.7

FORBO HALF-YEAR REPORT 2021

Notes to the condensed consolidated
half-year financial statements (unaudited)
01 General information
This condensed consolidated interim report of Forbo
Holding Ltd and its subsidiaries (hereinafter ‘the Group’)
covers the six-month period from January 1, 2021, toJune 30, 2021 (hereinafter ‘reporting period’), and was
prepared in accordance with International AccountingStandard 34 (IAS 34) ‘Interim Financial Reporting’. The
consolidated half-year financial statements do not include all information reported in the consolidated fullyear financial statements and should therefore be readin conjunction with the consolidated financial statements as at December 31, 2020. There were no changes
in the scope of consolidation in the reporting period.
The consolidated half-year financial statements havenot been audited by the auditors. They were approvedfor publication by the Board of Directors on July 29,
2021.
02 Group accounting principles
The accounting principles applied in the consolidated
half-year report are in line with the accounting policies
set out in the 2020 Annual Report with the exceptions
listed below:
The following relevant amended standards of the International Accounting Standards Board (IASB) were applied for the first time in the business year that began
on January 1, 2021:– Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and
IFRS 16 ‘Interest Rate Benchmark Reform – Phase 2’– Amendment to IFRS 16 ‘COVID-19-Related Rent
Concessions’Standards, interpretations or amendments that havebeen published but are not yet mandatory have notbeen adopted early. The first-time adoption of theabovementioned amended standards had no impact
on the half-year report presented here.
The preparation of the consolidated half-year financial
statements requires management to use estimatesand assumptions that may affect reported revenues,
expenses, assets, liabilities, and contingent liabilities atthe date of the financial statements. If the estimatesand assumptions used by management to the best of
its knowledge at the date of the financial statements
happen to differ from subsequent actual facts, theoriginal estimates and assumptions will be adjusted in
the reporting period in which the facts have changed.
The consolidated half-year financial statements do notcontain any significant new discretionary decisions andestimates used by management compared with theconsolidated financial statements as at December 31,
2020.
Income tax expenditure is estimated on the basis of
average actual tax rates during the current business
year.

9

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FORBO HALF-YEAR REPORT 2021

03 Segment information
The Group is a global producer of Flooring Systems andMovement Systems. The divisions correspond to theinternal management structure and are run separately
because the products that they manufacture, distribute,and sell differ fundamentally in terms of production,
distribution, and marketing.
In the Flooring Systems division, the Group develops,
produces, and sells lino­leum, vinyl floor coverings, entrance flooring systems, carpet tiles, needle felt floor
coverings, Flotex, the washable textile flooring, andbuilding and construction adhesives, as well as various
accessory products required for installing, processing,cleaning, and care of flooring. In the Movement Systems
division, the Group develops, produces, and sells high-­
quality conveyor and processing belts, as well as plastic
modular belts, and drive, timing and flat belts made ofsynthetic materials. Corporate includes the costs of theGroup headquarters and certain items of income andexpenses that are not directly attributable to a specificsegment.

The Flooring Systems and Movement Systems divisions
are reportable segments. The identification of report­able
segments is based on internal management reportingto the Executive Chairman of the Board of Directors andto the Chief Executive Officer of the Group and henceon the financial information used to review the performance of the operational units in order to reach a decision on the allocation of resources.
The Executive Chairman of the Board of Directors andthe Chief Executive Officer assess the performanceof the reportable segments based on their operating
profit (EBIT). The net financial result is not allocated tothe segments since it is Corporate Treasury that ­exercises
central control over the financial result.

FORBO HALF-YEAR REPORT 2021

11First half 2021

Unaudited, CHF m
Total sales
Inter-segment sales
Net sales to third parties
Operating profit (EBIT)
EBITDA1)
Operating assets
Capital expenditure 2)
Number of employees (June 30)

Flooring
Systems
423.1
423.1
61.8
79.2
554.6
7.0
3,055

Movement
Systems
200.1
– 0.1
200.0
25.3
35.1
326.4
3.6
2,424

Corporate/
Elimination
– 0.1
0.1

Movement
Systems
176.3
– 0.2
176.1
10.2
19.8
292.1
7.8
2,415

Corporate/
Elimination
– 0.2
0.2

– 5.0
– 4.4
19.3
0.0
40

Total
623.1
623.1
82.1
109.9
900.3
10.6
5,519

1) Operating profit before depreciation and amortization
2) Purchase of property, plant, and equipment, and intangible assets (excluding leasing)First half 2020

Unaudited, CHF m
Total sales
Inter-segment sales
Net sales to third parties
Operating profit (EBIT)
EBITDA1)
Operating assets
Capital expenditure 2)
Number of employees (June 30)

Flooring
Systems
366.2
366.2
36.6
53.8
503.3
7.8
3,003

Total
542.3

– 5.7
– 5.2
24.6
0.0
39

542.3
41.1
68.4
820.0
15.6
5,457

First half 2021
82.1
– 0.1
82.0

First half 2020
41.1
– 0.5
40.6

Unaudited, CHF m

30 June2021

31 December
2020

Total operating assets
Non-operating assets
Total assets

900.3
228.5
1,128.8

809.3
301.5
1,110.8

1) Operating profit before depreciation and amortization
2) Purchase of property, plant, and equipment, and intangible assets (excluding leasing)

Reconciliation of segment information to the income statement and balance sheet:
Unaudited, CHF m
Total segment result (EBIT)
Financial result
Group profit before tax

12

FORBO HALF-YEAR REPORT 2021

Operating assets include ‘Trade and other receivables
and accrued income’, ‘Inventories’ and ‘Property, plant,
and equipment, intangible assets and goodwill’. Nonoperating assets include ‘Cash and cash equivalents’,‘Current financial assets’, ‘Non-current financial assets’and ‘Deferred tax assets’.

The following table shows revenue broken down bygeographic region and by the two product groups thatare identical with the reportable segments.

Net sales per segment by region

Unaudited, CHF m
Regions
EuropeAmericasAsia/Pacific and Africa
Total net sales to third parties

First half 2021

Flooring Systems
First half 2020

326.9
63.0
33.2
423.1

279.0
59.7
27.5
366.2

04 Balance sheet
Details regarding the change in cash and cash equivalents can be found in the consolidated cash flow statement.
Trade and other receivables and accrued income, as
well as inventories showed an increase compared with
year-end 2020. Trade receivables in particular and inventories too were subject to the usual buildup in operating working capital in the first half of the year.
With investments in property, plant, and equipment
amounting to CHF 17.0 million (of which CHF 6.4 million for leased property, plant, and equipment) against
depreciation of CHF 25.5 million (of which CHF 8.2 million for leased property, plant, and equipment), property, plant, and equipment increased to CHF 294.6 million(of which CHF 47.1 million for leased property, plant, andequipment) in the first half of 2021 due to positive currency effects. With amortizations of CHF 2.3 million
unchanged from the previous year, intangible assets
also increased driven by positive translation effects to
CHF 103.3 million (end of previous year: CHF 100.8 million).
As in the prior-year period, the total financial liabilities
of CHF 45.9 million (end of previous year: CHF 45.2 million) contain almost exclusively leasing liabilities, ofwhich CHF 12.8 million (end of previous year: CHF 14.1
million) will fall due within less than 12 months.

Movement Systems
First half 2021
First half 2020
81.9
63.9
54.2
200.0

70.8
58.2
47.1
176.1

Trade payables decreased by CHF 11.6 million. Thischange was timing-related. The other non-financial
positions in current liabilities increased by CHF 42.0
million. This increase is primarily attributable to higher
accrued expenses as well as the withholding tax fromthe purchase of treasury shares.
Non-current non-financial liabilities fell by a total of
CHF 7.3 million due to the employee benefit obligations
contained therein. These obligations decreased due tohigher discount rates. The remeasurements of employee
benefit obligations was credited to the consolidated
comprehensive income statement.
Compared with December 31, 2020, shareholders’­equity decreased by CHF 5.8 million to CHF 677.7­million. The increase in shareholders’ equity by theamount of Group profit of CHF 63.5 million and by theother comprehensive income, net of tax, of CHF 27.4
million was offset mainly by the dividend payment of
CHF 31.4 million, the purchase of treasury sharesamounting to CHF 9.7 million and the buyback of trea­sury shares in the amount of CHF 56.9 million as part ofthe 2019 – 2022 share buyback program.

FORBO HALF-YEAR REPORT 2021

Share buyback program 2019 – 2022: at the Ordinary
General Meeting of April 5, 2019, the Board of Directorsof Forbo Holding Ltd was authorized to buy back thecompany’s own shares up to a maximum of 10% of theshare capital over a period of three years. On the basisof this authorization, the Board of Directors launched
a new share buyback program on March 22, 2021, enabling a maximum of 165,000 Forbo registered shares(equivalent to 10% of the share capital entered in theCommercial Register) to be bought back by March 31,
2022, at the latest via a second trading line of the SIX
Swiss Exchange. As part of this 2019 – 2022 share buyback program, a total of 32,200 shares (2.0% of the sharecapital) were bought back as of June 30, 2021. Theseshares are marked for cancellation.

Income tax amounted to CHF 18.5 million, corresponding to a tax rate of 22.5%. This was slightly higher than
the same period the previous year.

Due to the increase in treasury shares, the equity ratio
fell correspondingly from 61.5% on December 31, 2020,
to 60.0% on June 30, 2021.

Cash flow from operating activities came to CHF 34.7
million, which was lower than the prior-year period
despite the substantially higher Group profit. This is attributable to the usual buildup in net operating working
capital in the first half-year being absent in the first halfof 2020 for COVID-19-related reasons.

05 Income statement
Net sales increased by 14.9% to CHF 623.1 million. The
first six months of 2021 benefited from a recovery indemand in all markets and customer segments after the
COVID-19-related sales decline in the first half of 2020.
The sales increase came to 14.3% in local currencies,
with all regions contributing to the sales trend withdouble-digit growth rates.
The cost of goods sold increased due to additionalsales; higher raw material costs were also a factor in theincrease.
Operating expenses benefited from the adjustments
to processes and structures introduced last year, also
COVID-19 continued to curtail operational activities. In
addition, allowances on inventories and trade receiv­
ables remained slightly below the prior-year period.
Operating profit (EBIT) in the period under review cameto CHF 82.1 million, which was CHF 41.0 million higher
than the prior-year period.
Interest expenditure of CHF – 0.4 million for leased
property, plant, and equipment was offset by interest
income and foreign exchange gains, yielding a financial
result of CHF – 0.1 million.

The resulting Group profit came to CHF 63.5 million andwas thus CHF 31.8 million higher than in the prior-year
period.
Undiluted earnings per share on the basis of the average
number of shares in circulation amounted to CHF 40.52
in the reporting period (prior-year period: CHF 19.84).
Diluted earnings per share also came to CHF 40.52­(prior-year period: CHF 19.84).
06 Cash flow statement

As in the prior-year period, cash flow from investing
activities reflects the cash outflow for investments inproperty, plant, and equipment, and in intangible assets.
The cash flows are subject to the payment terms of the
projects and therefore differ during the course of theyear.
Cash flow from financing activities reflects the cash outflow of CHF 31.4 million for the dividend payment,
payments of CHF 8.9 million for leasing obligations, andthe purchase of treasury shares amounting to CHF 60.9
million.

13

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FORBO HALF-YEAR REPORT 2021

07 Main exchange rates applied
The following exchange rates against the CHF havebeen applied for the most important currencies concerned:
Income statement
Average exchange rate, 6 months
2021

2020

30 June2021

31 December
2020

1.09450.90801.2606
0.843014.032310.80431.06420.96591.21610.892513.7333
9.98191.09650.9212
1.27610.833814.2520
10.80141.08400.88221.20110.8552
13.5234
10.7469

Exchange rates
Euro countries
USA
United Kingdom
Japan
China
Sweden

EUR
USD
GBP
JPY
CNY
SEK

1
1
1
100
100
100

Balance sheet
On balance sheet date

08 Events after the balance sheet date
Between the balance sheet date and the date of publication of this half-year report, no events occurred that
could have a significant effect on the 2021 half-year
financial statements.

CalendarMedia and financial analysts’ conference for the 2021 business year:	
Ordinary General Meeting 2022:
Half-year report 2022:		

Thursday, March 3, 2022
Friday, April 1, 2022
Friday, July 29, 2022

Our half-year report is published in German and in English translation. The German version is authoritative.

Forbo Holding Ltd
Lindenstrasse 8
CH-6340 Baar

Forbo Management SA
Lindenstrasse 8
CH-6340 Baar

T + 41 58 787 25 25
F + 41 58 787 20 25

info@forbo.com
www.forbo.com