CONNECT.
HALF-YEAR REPORT 2023

SOLID FIRST HALF YEAR 2023 DESPITE DIFFICULTMARKET ENVIRONMENT AND NEGATIVE CURRENCY EFFECTS
NET SALES IN LOCAL CURRENCIES SLIGHTLY BELOWSTRONG PRIOR-YEAR PERIODMEASURES TO INCREASE EARNINGS PROVE EFFECTIVE
EBIT MARGIN INCREASEDCONFIRMATION OF GUIDANCE FROM SPRING 2023

2

FORBO HALF-YEAR REPORT 2023

The Forbo Group – a leading manufacturer of floor coverings, building and­construction adhesives, as well as power transmission and conveyor belt solutions –reported net sales of CHF 615.2 million in the first half of 2023 (prior-year period:
CHF 667.3 million), representing a decrease of 2.2% in local currencies (7.8% in thecorporate currency). Operating profit (EBIT) declined by 4.3% to CHF 75.2 million(prior-year period: CHF 78.6 million). The EBIT margin rose to 12.2% (prior-year­period: 11.8%). Group profit saw a decline of 4.8% to CHF 57.4 million (previous
year: CHF 60.3 million). Cash flow from operating activities improved significantly
and came to CHF 33.0 million (prior-year period: CHF – 10.0 million).

Dear Shareholders,
As expected, the first half of 2023 was affected by geopolitical and macroeconomic challenges that also had an
impact on our businesses. Compared with the strong performance in the first half of 2022, there was a significant
slump in demand and an associated decline in volumes. In addition, strong negative currency effects and significant
rises in personnel and energy cost had to be offset. We focused on realizing measures previously announced to
improve profitability and implementing operational and strategic projects. We aligned our operating structures tothe lower volumes, reduced inventories, and applied the necessary sales price increases. This resulted in an increasein cash inflow. The first half of 2023 showed some improvements over the final months of 2022, e­ specially in termsof volume and margin development.
We overcame the challenges faced in an extremely demanding environment, and increased profitability slightly incomparison to the strong first half of 2022.
Major impact of currency effects on net sales and earnings
The conversion of local results into the corporate currency exposed us to considerable currency-related negative
impacts in the areas of net sales (CHF 37 million) and EBIT (CHF 5 million). Both divisions were affected to asimilar degree. The Japanese yen, the Chinese renminbi, the Swedish krona, and the pound sterling all ­contributed,
along with the euro and the US dollar. The euro was the main driver for the majority of the impact.
Net sales in local currencies down slightly in comparison with strong first half of 2022
With net sales of CHF 615.2 million in the first half of 2023 (prior-year period: CHF 667.3 million), Forbo registereda slight decrease in local currencies of 2.2% (– 7.8% in the corporate currency). Compared with a strong first halfyear in 2022, the net sales development in local currencies for the regions were as follows: Asia/Pacific + 3.1%,
Europe – 2.0%, and the Americas – 6.3%. It was not possible to fully offset the clearly discernible downturn indemand and volumes through price adjustments.
Flooring Systems reported a decline in net sales of 3.4% in local currencies (– 8.8% in the corporate currency).
Demand continues to be affected by the shift away from renovation projects to energy-saving projects in­response to the energy crisis. In addition, the construction industry remains generally sluggish due to the effects
of inflation on construction cost and higher interest rates.
Movement Systems achieved net sales at the previous year’s level in local currencies (+ 0.3%, – 5.6% in the­corporate currency). Following some years of growth, demand in the logistics segment is still at a reduced level,
as the requirement for new e-commerce and parcel centers is not as strong as during the time of the p­ andemic.
Processing belts for the food industry, for industrial production segments, and for processing raw materials wereincreasingly in demand. On the other hand, there was no sign yet of a discerning recovery in China, a key market
for Movement Systems.

FORBO HALF-YEAR REPORT 2023

3

Profitability increased despite decline in volumes and strong negative currency effects
Operating profit before depreciation and amortization (EBITDA) came to CHF 102.8 million (prior-year period:
CHF 106.3 million), corresponding to a decline of 3.3%. The EBITDA margin increased to 16.7% (prior-year period:
15.9%). Operating profit (EBIT) reduced by CHF 4.3% to CHF 75.2 million (prior-year period: CHF 78.6 million) andthe EBIT margin rose to 12.2% (prior-year period: 11.8%).
Despite the decrease in volumes (– 8%) due to continuing muted demand (especially in Flooring Systems),
negative currency effects, and significantly higher personnel and energy cost, profitability increased slightly incomparison with the first half of 2022. This was the result of adjusting operating structures, optimizing sales andproduction planning processes, introducing measures to increase efficiency, and implementing sales price­increases (+ 6%). Furthermore, inventories were reduced.
Group profit
On the basis of the lower operating profit, a slightly higher financial result, and a more or less unchanged tax
rate, Forbo posted a Group profit of CHF 57.4 million (prior-year period: CHF 60.3 million), corresponding to a
decline of 4.8%. Earnings per share (undiluted) reduced by 4.8% to CHF 40.54 (prior-year period: CHF 42.60).
Equity ratio remains strong
Equity at the end of June 2023 stood at CHF 545.3 million (year-end 2022: CHF 550.1 million), corresponding to
a decrease of 0.9%. The equity ratio was 55.9% (year-end 2022: 57.3%).
Solid balance sheet
At the end of June 2023, Forbo had net cash amounting to CHF – 17.6 million (year-end 2022: CHF + 21.4 million).
The decline was mainly due to the dividend payout and share purchases. In addition, Forbo holds treasury sharesworth CHF 106.6 million, based on the share price at end-June 2023. Cash flow from operating activities improved
significantly and, due to optimized management of the operating working capital, came to CHF 33.0 million(prior-year period: CHF – 10.0 million).
Performance of the divisions
The Forbo Flooring Systems division reported net sales of CHF 415.9 million in the first half of 2023 (prior-year
period: CHF 456.2 million). In a very challenging market environment for the construction industry, where­construction activity is being held back by inflationary cost and higher interest rates, the distribution of sales inlocal currencies among the three regions was as follows: Asia/Pacific + 6.0%, Europe – 3.4%, and the Americas– 7.9%. In Europe, some core markets such as France, Germany, Switzerland, and Sweden recorded a decline in
net sales to some extent. The Netherlands and the United Kingdom remained more or less at the previous year’slevel. ­Southern and Eastern Europe contributed positively to net sales. In the Americas, the key US market ­mainly
impacted the decline in net sales, which was due in particular to muted demand in the education ­segment. In
Asia/Pacific, net sales presented a mixed picture. Australia, South Korea, and Southeast Asia were growth drivers;
however, Japan and China saw a decline.
The building and construction adhesives activity reported healthy sales growth in an increasingly challenging
market environment.
Operating profit (EBIT) reduced by CHF 9.8% to CHF 52.5 million (prior-year period: CHF 58.2 million). The main
reasons for this decrease lay in the market-driven negative volume growth and the corresponding decline incapacity utilization, the significantly higher personnel and energy cost, and negative currency effects. The sales
price adjustments were sufficient to cover the inflation-related cost increases but not to the full extent of thedecline in volumes. As far as the price of raw materials is concerned, a slight easing of pressure has been discernible
in the meantime. The EBIT margin decreased accordingly to 12.6% (prior-year period: 12.8%). Along with ­continued
improvements to profitability, the focus for the second half of 2023 will be on the introduction of innovativecollections coupled with marketing activities via the well-established digital channels, as well as on the­construction of the Flotex manufacturing plant in the USA.

4

FORBO HALF-YEAR REPORT 2023

The Forbo Movement Systems division reported net sales of CHF 199.3 million in the first half of 2023 (prior-year
period: CHF 211.1 million). The three regions recorded the following changes in local currencies: Europe + 3.5%,
Asia/Pacific + 1.3%, and the Americas – 5.0%. In Europe, Germany, Scandinavia, France, and Southern Europe were
the growth drivers, whereas Switzerland, the United Kingdom, and the Netherlands registered declining demand.
In the Americas, the USA mainly impacted the decline, especially as a result of reduced orders in the logistics
segment, with its above-average importance for the country. Asia/Pacific showed a mixed trend. Growth drivers
were Japan, Southeast Asia, and Australia. India and South Korea recorded a slight downturn.
Operating profit (EBIT) decreased slightly by CHF 0.7% to CHF 27.2 million (prior-year period: CHF 27.4 million).
The decline in volumes coupled with the negative currency effects were key factors along with the significantly
higher personnel and energy cost. These were mitigated by the optimized alignment of sales and production
planning as well as sales price adjustments. The EBIT margin improved accordingly to 13.6% (prior-year period:
13.0%). The focus for the second half of the year will be on optimizing operational processes and inventory,
commissioning the additional production line in China, launching the modernization of the production plant inJapan, and expanding the new Fullsan product line (homogenous belts).
Systematic implementation of proven strategy
Our activities focus on clearly defined business areas and market segments in which we are or aspire to be
globally leading. This is achieved through our clear customer focus, an excellent standard of service, innovation,
sustainability, digital transformation, and a strong global brand. We will continue to remain committed to thisproven strategy and gauge our medium- and long-term prospects to be positive.
On this basis, we contribute to the reduction of the global carbon footprint with sustainable, high-quality­products and innovative solutions in both divisions, and, thanks to our technical expertise and global presence,
we are well placed to forge ahead with the strategic focus areas.

FORBO HALF-YEAR REPORT 2023

5

Confirmed outlook for 2023
In view of our solid and healthy financial foundation, proven strategy, and leading market positions, we are wellequipped with the successfully implemented measures to reaffirm the outlook presented in the spring of 2023.
This is despite the very negative currency effects and ongoing muted demand. By contrast with the striking
downturn in volumes experienced in the fourth quarter of 2022, a slight recovery has been noted since thebeginning of 2023, which should lead to a moderate increase in net sales in local currencies for 2023 as a whole.
Assuming there is no significant change in the geopolitical and economic environments, we anticipate slightly
higher net sales in local currencies for the full year 2023 compared with the previous year, and a Group profit in
the magnitude of CHF 130 million, if foreign exchange rates remain at the levels seen in the first half of 2023.

This E. Schneider
ChairmanForbo Holding Ltd
Baar, July 28, 2023

Jens Fankhänel
CEO

6

FORBO HALF-YEAR REPORT 2023

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

June 30, 2023

December 31, 2022

601.2
45.9
250.0
305.3
374.6
340.7
32.1
1.8
975.8

571.6
46.7
208.7
316.2
388.6
352.5
34.3
1.8
960.2

308.6
78.2
68.1
162.3
121.9
26.1
95.8
430.5
545.3
975.8

291.6
39.0
102.5
150.1
118.5
26.6
91.9
410.1
550.1
960.2

First half 2023
615.2
– 399.4
215.8– 140.6
75.2
– 1.2
74.0
– 16.6
57.4
57.4

First half 2022
667.3
– 434.3
233.0– 154.4
78.6
– 0.7
77.9
– 17.6
60.3
60.3

40.54
40.54

42.60
42.60

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 2023

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 2023
57.4

First half 2022
60.3

– 3.5

21.8

– 12.9– 16.441.0
41.0– 13.5
8.3
68.6
68.6

Consolidated statement of changes in equity
first half 2023
Unaudited, CHF m
January 1, 2023
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2023

Share capital

Treasuryshares0.1– 0.0

Reserves

0.1

– 0.0

947.3
57.4
– 3.5
53.9
2.3
– 15.5– 32.6955.4

Share capital

TreasurysharesReserves

0.2

– 0.1

Translationdifferences– 397.3– 12.9– 12.9– 410.2

Translationdifferences

Total

550.1
57.4
– 16.441.0
2.3– 15.5– 32.6545.3

Consolidated statement of changes in equity
first half 2022
Unaudited, CHF m
January 1, 2022
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2022

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

– 0.1

0.1

0.1

– 0.0

882.7
60.3
21.8
82.1
2.0
– 24.7– 35.3906.8– 361.0– 13.5– 13.5– 374.5

Total

521.8
60.3
8.3
68.6
2.0
– 24.7– 35.3532.4

8

FORBO HALF-YEAR REPORT 2023

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
Payment of lease liabilities
Increase in current financial debt
Purchase of treasury shares
Dividend payment
Net cash flow from financing activities
Increase/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 2023
57.4
27.6
– 61.09.0
33.0– 10.7
0.6– 10.1– 9.5
38.5– 16.6– 32.6– 20.2
2.7
– 3.5
46.7
45.9

First half 2022
60.3
27.7
– 106.8
8.8– 10.0
– 8.7
0.6
– 8.1
– 8.4
50.1
– 27.5– 35.3– 21.1– 39.2
0.6
93.3
54.7

FORBO HALF-YEAR REPORT 2023

Notes to the condensed consolidated ­half-year financial statements (unaudited)
01 General information
This condensed consolidated interim report ofForbo Holding Ltd and its subsidiaries (hereinafter ‘theGroup’) covers the six-month period from January 1,
2023 to June 30, 2023 (hereinafter ‘reporting period’)and was drawn up in accordance with International
Accounting Standard 34 (IAS 34) ‘Interim Financial
Reporting’. The consolidated half-year financial­­statements do not include all information reported in
the consolidated full-year financial statements andshould therefore be read in conjunction with the­consolidated financial statements as at December 31,
2022. During the prior-year period, the two sales­organizations Forbo Tema S.r.l. and Realbelt GmbH in
the Movement Systems division were absorbed bytheir parent companies Forbo Siegling Italia S.p.A. andForbo Siegling GmbH, respectively, for the purpose of
simplifying the Group structure.
The consolidated half-year financial statements havenot been audited by the auditors. They were approvedfor publication by the Board of Directors on July 27,
2023.

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 2022 Annual Report with the following
exceptions:
The following new and amended relevant standards
and interpretations of the International AccountingStandards Board (IASB) were applied for the first time in
the business year that began on January 1, 2023:– IFRS 17 ‘Insurance Contracts’– Amendments to IAS 8‘Definition of Accounting Estimates’– Amendments to IAS 1 and IFRS Practice Statement 2‘Disclosure of Accounting Policies’– Amendments to IAS 12 ‘Deferred Tax related to Assets
and Liabilities arising from a Single Transaction’Standards, interpretations or amendments that havebeen published but are not yet mandatory have notbeen adopted early. The first-time adoption of theabove-mentioned revised standards and interpretations
had no material impact on the half-year report­presented here.
The preparation of the consolidated half-year financial
statements requires management to use estimates andassumptions that may affect reported revenues,­expenses, assets, liabilities, and contingent liabilities atthe date of the financial statements. If the estimates andassumptions used by management to the best of its
knowledge at the date of the financial statements­happen 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,
2022.
Income tax expenditure is predicted on the basis of­average actual tax rates during the current business year.

910

FORBO HALF-YEAR REPORT 2023

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.
Flooring Systems develops, produces, and sells linoleum,
vinyl floor coverings, entrance flooring systems, carpet
tiles, needle felt floor coverings, Flotex – the washable
textile flooring –, building and construction ­adhesives,
as well as various accessory products ­required for­installing, processing, cleaning, and care of flooring.
Movement Systems develops, produces, and sells
high-quality conveyor and processing belts, as well as
plastic modular belts and drive, timing, and flat belts
made of synthetic m­ aterials. Corporate includes thecosts of the Group headquarters and certain items
of income and ­expenses that are not directly a­ ttributable
to a specific segment.

The Flooring Systems and Movement Systems divisions
are reportable segments. The identification of reportablesegments is based on internal management reportingto the Chairman of the Board of Directors and to theChief Executive Officer of the Group, and hence on thefinancial information used to review the p­ erformanceof the operational units in ­order to reach a decision on
the allocation of resources.
The Chairman of the Board of Directors and theChief Executive Officer assess the performance of the­segments based on their ­operating result (EBIT). The net
financial result is not allocated to the segments since it
is Corporate Treasury that exercises central control overthe financial result.

FORBO HALF-YEAR REPORT 2023

11

First half 2023

Unaudited, CHF m
Total sales
Inter-segment sales
Net sales to third parties
Operating profit (EBIT)
EBITDA1)
Operating assets
Capital expenditure2)
Number of employees (June 30)

Flooring
Systems
415.9
415.9
52.5
68.9
528.1
4.1
2,881

Movement
Systems
199.3
– 0.0
199.3
27.2
38.1
340.8
6.6
2,438

Corporate/
Elimination
– 0.0
0.0

Movement
Systems
211.2
– 0.1
211.1
27.4
38.0
335.4
2.2
2,564

Corporate/
Elimination
– 0.1
0.1

– 4.5
– 4.2
28.9
0.0
38

Total
615.2
615.2
75.2
102.8
897.8
10.7
5,357

1) Operating profit before depreciation and amortization
2) Purchase of property, plant, and equipment, and intangible assets (excluding leasing)First half 2022

Unaudited, CHF m
Total sales
Inter-segment sales
Net sales to third parties
Operating profit (EBIT)
EBITDA1)
Operating assets
Capital expenditure2)
Number of employees (June 30)

Flooring
Systems
456.2
456.2
58.2
75.0
578.1
6.5
3,134

– 7.0
– 6.7
22.6
0.0
38

Total
667.3
667.3
78.6
106.3
936.1
8.7
5,736

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 taxes

First half 2023
75.2
– 1.2
74.0

First half 2022
78.6
– 0.7
77.9

Unaudited, CHF m
Total operating assets
Non-operating assets
Total assets

June 30, 2023
897.8
78.0
975.8

December 31, 2022
879.2
81.0
960.2

12

FORBO HALF-YEAR REPORT 2023

Operating assets include ‘Trade and other receivables’,‘Inventories’ and ‘Property, plant, and equipment,
intangible assets, and goodwill’ and ‘Non-current­­financial assets’. Non-operating assets include ‘Cash andcash equivalents’ 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 2023

Flooring Systems
First half 2022

313.5
66.0
36.4
415.9

342.4
75.2
38.6
456.2

04 Balance sheet
The change in cash and cash equivalents can be foundin the consolidated cash flow statement.
Trade and other receivables and accrued income
showed an increase compared with year-end 2022.
Trade receivables increased as a result of seasonallyhigher net sales. Inventories declined, primarily due to­improved production and sales planning.
Property, plant, and equipment decreased from
CHF 267.6 million to CHF 257.3 million in the first halfof 2023 (of which CHF 42.6 million for leased property,
plant, and equipment). Investments in property, plant,
and equipment of CHF 19.6 million (of which
CHF 8.9 million for leased property, plant, and equipment) were offset by depreciation of CHF 25.4 million(of which CHF 8.2 million for leased property, plant, andequipment). Intangible assets and goodwill declinedwith amortization of CHF 2.2 million (prior-year period:
CHF 2.1 million) to CHF 83.4 million (end of previous
year: CHF 84.9 million).
Due to the sanctions and other measures against Russia
taken in connection with the situation in Ukraine, alarge proportion of assets, including goodwill, was­written down during the 2022 reporting year. The­respective assets in Russia were retested for impairment
in the first half of 2023. No significant need to adjust
the existing valuation allowance was evident as a resultof this review.

Movement Systems
First half 2023
First half 2022
85.6
64.5
49.2
199.3

87.5
69.9
53.7
211.1

The total current financial liabilities of CHF 78.2 million(end of previous year: CHF 39.0 million) mainly include
leasing liabilities of CHF 14.7 million (end of previous
year: CHF 13.8 million), and money market financing of
CHF 58.6 million (end of previous year: CHF 19.7 million).
The non-current financial liabilities include leasing­liabilities only.
Trade payables reduced by CHF 34.4 million. Thischange was primarily timing related. The other itemsin the remaining current liabilities increased by
CHF 12.2 million. This raise is largely attributable tohigher accrued expenses.
Employee benefit obligations, non-current provisions,and deferred tax liabilities rose by CHF 3.9 million, of
which CHF 3.7 million was accounted for by the­pension liabilities contained therein. The net liability fromdefined benefit pension plans increased, primarily­because of the lower valuation of assets of the plan in
the United Kingdom. The revaluation of the net liability
was charged to the consolidated comprehensive­income statement.

FORBO HALF-YEAR REPORT 2023

Equity decreased by CHF 4.8 million to CHF 545.3 million
compared with December 31, 2022. Due to this­reduction and the higher total assets, the equity ratio
saw a decline from 57.3% on December 31, 2022, to55.9% on June 30, 2023. The increase in shareholders’equity by the amount of total comprehensive incomeof CHF 41.0 million was offset mainly by the dividend
payout of CHF 32.6 million and the increase in treasury
shares amounting to CHF 13.2 million.

05 Income statement
Net sales decreased by 7.8% to CHF 615.2 million in thecorporate currency. In local currencies, the decline
came to 2.2%, which was attributable to lower sales
volumes. The Asia/Pacific and Africa region saw slight
growth, however Europe and America recorded­decreases in net sales.
The manufacturing costs of the products sold reduced
as a result of the lower sales volume and slightly lower
prices for materials. It was possible to achieve a significant
reduction in operating expenses compared with thesame period last year due to improvements to operatingprocedures.
Operating profit (EBIT) in the reporting period came to
CHF 75.2 million, which was CHF 3.4 million or 4.3%
lower than in the prior-year period.
In both periods, the financial result included the interest
expense for leased properties of CHF – 0.4 million. The
increase of the financial result in the current year is­attributable to slightly higher currency losses and interest
charges on current financial liabilities.
Income tax amounted to CHF 16.6 million, corresponding
to a tax rate of 22.4%. This was slightly less than thesame period the previous year (22.6%).
The resulting Group profit came to CHF 57.4 million andwas thus CHF 2.9 million lower than in the same period
the previous year.

Undiluted earnings per share on the basis of the­average number of shares in circulation amounted to
CHF 40.54 in the reporting period (prior-year period:
CHF 42.60). Diluted earnings per share also came to
CHF 40.54 (prior-year period: CHF 42.60).

06 Cash flow statement
Cash flow from operating activities came to
CHF 33.0 million, which was therefore substantiallyhigher than for the same period the previous year. The
clear improvement in cash flow from operating activities
stems primarily from a positive cash flow resulting fromthe change in inventory. This was reduced in the­current year compared with the end of 2022, whereas
in the prior-year period a substantial increase in­inventory was recorded. In addition, a smaller increasein trade receivables had a positive effect on the cash
flow from operating activities.
As in the same period the previous year, cash flow frominvesting activities reflects the cash outflow for investments in property, plant, and equipment and in intangible
assets. This increase is attributable to strategic investment
projects. However, the cash flows are always also­dependent on the payment processes of the projects
and therefore differ during the course of the year.
In the reporting year, in addition to the cash outflow of
CHF 32.6 million for the dividend, payments of
CHF 9.5 million for leasing obligations, and the ­purchaseof treasury shares amounting to CHF 16.6 million,
cash flow from financing activities also included an­inflow of CHF 38.5 million from money market ­financing.

13

14

FORBO HALF-YEAR REPORT 2023

07 Main exchange rates applied
The following exchange rates against the CHF have been
applied for the most important currencies concerned:
Income statement
Average exchange rate, 6 months
Exchange rates
Euro countries
USA
United Kingdom
Japan
China
Sweden

EUR
USD
GBP
JPY
CNY
SEK

1
1
1
100
100
100

2023
0.98560.9116
1.1246
0.675913.15838.69502022
1.03200.94381.22600.7685
14.58159.8448

Balance sheet
On balance-sheet dateJune 30, 2023
0.97710.89851.13380.620612.3877
8.2795

December 31, 2022
0.9841
0.9234
1.11230.696013.2600
8.818608 Events after the balance sheet date
Between the balance sheet date and the date of­publication of this half-year report, no events occurredthat could have a significant effect on the 2023
­half-year financial statements.

CalendarMedia and financial analysts’ conference for the 2023 business year:	
Tuesday, March 5, 2024
Ordinary General Meeting 2024:		
Friday, April 5, 2024
Media and financial analysts’ conference for the first half of 2024:			 Friday, July 26, 2024

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

info@forbo.com
www.forbo.com