CONNECT.
HALF-YEAR REPORT 2018

SUCCESSFUL FIRST HALF OF 2018SIGNIFICANT SALES GROWTH

+ 10.3%

ABOVE-AVERAGE INCREASE
IN OPERATING PROFIT+ 10.9%STRONG INCREASE IN GROUP PROFIT + 8.9%

2

FORBO HALF-YEAR REPORT 2018

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 668.8 million in the first half of 2018 (prior-year period:
CHF 606.3 million), which equates to strong growth of 10.3% (+ 5.8% in local currencies). Operating profit (EBIT) rose by CHF 10.9% to CHF 75.3 million (prior-year
period before one-off costs: CHF 67.9 million). The EBIT margin improved to 11.3%(prior-year period before one-off costs: 11.2%). Group profit from continuing operations rose by 8.9% to CHF 58.7 million (prior-year period before one-off costs:
CHF 53.9 million) despite a higher tax rate.

Dear shareholders,
Forbo posted a very successful first half of 2018, with strong growth in both sales and profit. Both divisions andall three regions contributed to this success. The growth drivers at Flooring Systems were the attractive, recently
launched flooring collections along with consistent marketing activities in the private sector commercial segment
and in growth markets. Movement Systems impressed major customers in a number of strategic customer segments with its high-quality, application-specific products and services.
Conversion of local results into the corporate currency resulted in a positive currency effect for both sales andprofit compared with the first half of 2017. The gains were driven mainly by the performance of the euro and thepound sterling. Seen over the whole year, this effect will be more neutral. The currency situation has more of an
impact on Flooring Systems than on Movement Systems due to the geographic weighting of their respective
business activities.
The provision for the one-off costs arising from the antitrust proceedings at Flooring Systems in France, done in
the first half-year 2017, has been neutralized in this part of the report in the prior-year period figures to ensure
better comparability (‘prior-year period before one-off costs’).
Significant sales growth
In the first half of 2018, Forbo generated higher net sales of CHF 668.8 million (prior-year period: CHF 606.3 million),reflecting an increase of 10.3% (+ 5.8% in local currencies). Both divisions and all the regions contributed to varying degrees to this gratifying growth. Flooring Systems posted sales growth of 11.3% (+ 5.9% in local currencies).
This was due, on the one hand, to its activities and initiatives in developing its sales structures for customers in
the private sector commercial segment and, on the other hand, to above-average performance in certain growthmarkets. Movement Systems reported a sales increase of 8.2% (+ 5.5% in local currencies). This result was also
driven by the very gratifying gains made in some growth markets and the above-average growth across the board
in most European markets.

FORBO HALF-YEAR REPORT 20183

Double-digit increase in operating profit
Despite a steep rise in raw material prices, operating profit showed an above-average increase because thehigher costs were offset by the successful launch of innovative products, enhanced service quality, as well as
efficiency gains.
Operating profit before depreciation and amortization (EBITDA) came to CHF 95.1 million (prior-year period before
one-off costs: CHF 86.3 million), corresponding to an increase of 10.2%. The EBITDA margin remained unchanged
at 14.2% (prior-year period before one-off costs: 14.2%). Operating profit (EBIT) grew by 10.9% from CHF 67.9
million before one-off costs in the previous year to CHF 75.3 million. The EBIT margin improved to 11.3% (prior-year
period before one-off costs: 11.2%).
Strong increase in Group profit
Despite a higher tax rate, Forbo increased Group profit from continuing operations by 8.9% to CHF 58.7 million(prior-year period before one-off costs: CHF 53.9 million).
Earnings per share from continuing operations (undiluted) rose by 9.5% to CHF 34.49 (prior-year period before
one-off costs: CHF 31.49).
Equity ratio remains highShareholders’ equity at the end of June 2018 stood at CHF 648.1 million (year-end 2017: CHF 661.2 million). The
equity ratio was 61.2% (year-end 2017: 61.9%), approximately at the prior-year level.
Solid liquidity and treasury shares
Net cash came to CHF 125.5 million at June 30, 2018 (year-end 2017: CHF 195.0 million). In addition, Forbo held
treasury shares worth CHF 174.2 million, based on the share price at the end of June 2018 (year-end 2017:
CHF 143.8 million). Of this, CHF 119.6 million (valued at the share price at the end of June 2018) is earmarked forcapital reduction latest at the Ordinary General Meeting in 2020.
Performance of the divisions
The Forbo Flooring Systems division reported net sales of CHF 462.7 million in the first half of 2018 (prior year
period: CHF 415.9 million), which is equivalent to a strong sales increase of 11.3% (+ 5.9% in local currencies).
All the regions contributed to this increase. The growth in local currencies was driven mainly by Asia/Pacific,
the Americas also posted double-digit growth, while sales in Europe were on the whole encouraging even in adivergent market environment. Sales performance in the first half, however, was very mixed. The countries with
better-than-average growth were Central, Southern and Eastern Europe, the USA, and some countries in Asia/
Pacific such as China and Australia. This extremely positive picture was countered by modest – and in somecases negative – growth in the Netherlands, Scandinavia, and the UK. The building and construction adhesives
activity posted pleasant sales growth on the whole, though it was driven mainly by Russia.
Operating profit (EBIT) rose by CHF 11.7% to CHF 58.4 million (prior-year period before one-off costs: CHF 52.3
million). This gain was the result of higher sales owing to volume and price increases, although it was diminishedby raw material prices that rose yet again. The EBIT margin remained unchanged at 12.6% (prior-year period before
one-off costs: 12.6%). We will continue to focus in the coming months on exploiting the potential of our attractive
product portfolio – in which we have invested heavily in recent years – with focused market activities and an
optimum level of service quality. We will also continue to compensate the previous year’s above-average rise in
raw material prices by obtaining higher prices for our products. Efficiency increases plus additional procurement
measures will help us to successfully meet the challenges from raw material price developments.

4

FORBO HALF-YEAR REPORT 2018

The Forbo Movement Systems division reported net sales of CHF 206.1 million in the first half of 2018 (prior-year
period: CHF 190.4 million), which is equivalent to a gratifying sales increase of 8.2% (+ 5.5% in local currencies). All
the regions made a positive contribution to this uptrend. Growth in local currencies was driven mainly by Europe,
while Asia/Pacific and the Americas, too, posted solid growth. Most markets in Europe performed well, especially
Germany and Southern Europe. At the beginning of May 2018, we acquired a small distributor in Norway. This
company will strengthen our position in the local food industry customer segment, offer additional potential asa new direct entry in this market, and reinforce our service structure in Scandinavia. Traditional markets in Asia/
Pacific such as Japan and China performed very well, while smaller growth markets such as India, Indonesia, andThailand developed better-than-average. Demand in North America remained stable, which led to further solid
growth.
Operating profit (EBIT) rose by 5.7% to CHF 24.1 million (prior-year period: CHF 22.8 million), despite higher raw
material prices. The EBIT margin declined to 11.7% (prior-year period: 12.0%). In the second half, we will continue
to work on optimizing various global areas of operation in order to further improve customer satisfaction withdelivery times and increase both our productivity and our efficiency. We will continue to expand our productoffering with innovative ideas that are tailored specifically to the needs of our varied customer segments.
Outlook for 2018
Our forecast for the full year 2018 has not changed. The overall environment remains challenging because thecurrency exchange situation, raw material price trends, and developments on individual markets are still volatileowing to political and macroeconomic conditions.
As announced in the spring, barring any change in the foreign exchange situation and assuming a similar business environment as in the previous year, we continue to anticipate for the full year 2018 a slight increase in net
sales and Group profit from continuing operations before one-off costs and special tax effects (2017 businessyear: CHF 127.6 million).

This E. Schneider
Executive Chairman

Forbo Holding Ltd
Baar, July 27, 2018

Stephan Bauer
CEOFORBO HALF-YEAR REPORT 20185

Key figures at a glance

Unaudited, CHF m
Net salesFirst half 2018
668.8

First half 2017
606.3

Change+ 10.3%
corporate currency+ 5.8%
local currencies

EBITDAEBITDA adjusted1)
EBITDA margin
Operating profit (EBIT)
Operating profit (EBIT) adjusted1)
EBIT margin
Group profit from continuing operations
Group profit from continuing operations, adjusted1)
Earnings per share from continuing operations (undiluted)
Earnings per share from continuing operations (undiluted), adjusted1)

95.1
95.1
14.2%
75.3
75.3
11.3%
58.7
58.7
CHF 34.49
CHF 34.49

86.3
1.3
14.2%
67.9
– 17.1
11.2%
53.9– 31.1
CHF 31.49
CHF – 18.19

1) Previous year factoring in the provision done in the first half-year 2017 for the one-off costs resulting from the antitrust proceedings at Flooring Systems in France.

+ 10.2%+ 10.9%+ 8.9%+ 9.5%

6

FORBO HALF-YEAR REPORT 2018

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 and deferred expenses
Inventories
Non-current assets
Deferred tax assets and other non-current financial assets
Property, plant, and equipment, intangible assets and goodwill
Total assets

30.6.201831.12.2017

636.4
125.7
274.6
236.1
423.0
44.8
378.2
1,059.4

638.2
195.4
216.2
226.6
429.3
39.3
390.0
1,067.5

272.3
82.2
0.1
190.0
139.0
0.1
138.9
411.3
648.1
1,059.4

275.3
105.9
0.2
169.2
131.0
0.2
130.8
406.3
661.2
1,067.5

First half 2018

First half 2017668.8
– 411.7257.1– 181.8
75.3
– 0.3
75.0
– 16.3
58.7
58.7
58.7

606.3
– 369.5
236.8– 253.9– 17.10.0– 17.1– 14.0– 31.1
2.2– 28.9– 28.9Earnings per share, total
Basic earnings per share in CHF
Diluted earnings per share in CHF

34.49
34.49

– 16.91– 16.91

Earnings per share from continuing operations
Basic earnings per share in CHF
Diluted earnings per share in CHF

34.49
34.49

– 18.19– 18.19

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

Condensed consolidated income statement
Unaudited, CHF mContinuing operations
Net sales
Cost of goods sold
Gross profit
Operating expenses
Operating profit
Financial result
Group profit before taxes
Income taxes
Group profit from continuing operations
Group profit from discontinued operations after taxes
Group profit
Group profit attributable to shareholders of Forbo Holding Ltd

The accompanying notes are an integral part of the Half-Year Report.

7

FORBO HALF-YEAR REPORT 2018

Consolidated comprehensive income
statement and statement of 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 tax
Items that are 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 shareholders of Forbo Holding Ltd

First half 2018
58.7

First half 2017
– 28.9

1.5

3.6

– 8.8
– 7.3
51.4
51.4

– 1.6
2.0
– 26.9– 26.9Consolidated statement of changes in equity
first half 2018
Unaudited, CHF m
January 1, 2018 (before application of IFRS 9)
Effect of application of IFRS 9 (net of tax)
January 1, 2018 (restated)
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2018

Share capital

Treasuryshares

0.2

– 0.1

0.2

– 0.1

Reserves

0.2

– 0.1

945.1
– 0.4
944.7
58.7
1.5
60.2
2.6
– 34.3– 32.4940.8

Share capital

TreasurysharesReserves

0.2

– 0.1

– 0.0

Translationdifferences– 284.0– 284.0
– 8.8
– 8.8

– 292.8

Translationdifferences

Total

661.2
– 0.4
660.8
58.7
– 7.3
51.4
2.6
– 34.3– 32.4648.1

Consolidated statement of changes in equity
first half 2017
Unaudited, CHF m
January 1, 2017
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2017

The accompanying notes are an integral part of the Half-Year Report.

0.0
0.2

– 0.1

941.4
– 28.93.6– 25.32.5
0.2– 32.5886.3– 320.1
– 1.6
– 1.6

– 321.7

Total

621.4
– 28.92.0– 26.92.5
0.2– 32.5564.7

8FORBO HALF-YEAR REPORT 2018

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
Purchase of business operations, less acquired cash and cash equivalents
Other cash flows from investing activities
Net cash flow from investing activities
Dividend payment
Cash outflow (–)/inflow from transactions with treasury shares, net
Other cash flows from financing activities
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 2018
58.7
19.9
– 82.35.3
1.6– 10.2– 1.4
0.5– 11.1– 32.4– 24.4– 0.2– 57.0– 66.5
– 3.2
195.4
125.7

First half 2017
– 28.918.4– 73.185.3
1.7– 15.30.4– 14.9– 32.50.3– 0.2– 32.4– 45.6
– 0.6
209.7
163.5

FORBO HALF-YEAR REPORT 2018

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, 2018, toJune 30, 2018 (hereinafter ‘reporting period’), and was
drawn up 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, 2017.
The consolidated half-year financial statements havenot been audited by the auditors. They were approvedfor publication by the Board of Directors on July 26,
2018.
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 2017 Annual Report with the following
exceptions:
The following relevant new standards of the International Accounting Standards Board (IASB) were applied
for the first time in the business year that began on
January 1, 2018:– IFRS 9 ‘Financial instruments’– IFRS 15 ‘Revenue from contracts with customers’Standards, interpretations or amendments that havebeen published but are not yet mandatory have notbeen adopted early.
IFRS 9 ‘Financial instruments’ includes new requirements for classification and measurement of financial
assets and liabilities, recognition of impairments, andgeneral hedge accounting. The implementation of the
new standards led to only minor deviations from thefigures reported previously.
The implementation of IFRS 9 had no impact on equity
or debt instruments since the Group does not employ
such instruments. The application of IFRS 9 affected
only the calculation and presentation of valuation allowances for doubtful trade receivables.

According to the previous standard, IAS 39, allowances
for doubtful trade receivables were made if they concerned losses that had already occurred (‘incurred loss
model’). Under the new standard, however, allowances
for doubtful trade receivables were made for expectedcredit losses (‘expected loss model’). Forbo employs thesimplified model ‘provision matrix’ for allowances for
doubtful trade receivables. In this provision matrix, expected losses on receivables are determined on thebalance sheet date on the basis of past experience ofdefault probability and of future-oriented expectations
based on experience with the customers and market
conditions.
In accordance with the transition method chosen, under IFRS 9, the prior-year period was not restated. The
reassessment of the valuation of trade receivables resulted in an increase in the valuation allowance for bad
debts of CHF 0.5 million (CHF 0.4 million after tax) as per
January 1, 2018. This amount was taken to equity.
IFRS 15 ‘Revenue from contracts with customers’
provides a comprehensive framework for specifying
whether, when, and to what extent revenues are recognized. Particularly with regard to the provisions governing the point in time or the period of time for recognition of revenue, the decisive factor is no longer thetransfer of risks and opportunities but the transfer ofcontrol of the goods and services to the customer.
NATURE OF PRODUCT OR SERVICE
Nature and time of performance obligation, significant
payment terms
FLOORING SYSTEMS
The revenue is generated by the sale of goods that arerecorded at a point in time in accordance with theagreed terms. The sale of goods is based on fixed prices.
In some cases, goal-oriented, variable volume discounts
are granted. Volume rebates are deducted from sales in
the amount of expected cash outflows. The payment
terms are in line with general business terms and conditions and range from 30 to 60 days.
The warranty periods granted for goods are in line withthe general business terms and conditions in the sector;
in some cases, these may be longer than prescribed bylaw. Provisions are made on the basis of the expectedcash outflow for known warranty claims and those expected in future.

910

FORBO HALF-YEAR REPORT 2018

MOVEMENT SYSTEMSThe nature and time of the performance obligation andthe payment terms are identical with those for Flooring
Systems.
In addition, Movement Systems provides service concerning the seamless connection of belting products.
These services are recognized separately as revenue atthe point in time the service is provided.

The Group implemented IFRS 15 with effect on January
1, 2018, using the cumulative effect method. The implementation of IFRS 15 had no effect on the consolidatedbalance sheet, the consolidated income statement or
the consolidated statement of changes in equity since
the business models employed by Forbo, in particular
the time of the transfer of control of the goods, is identical with the transfer of risks and opportunities under
the old standard.
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 at thedate of the financial statements. If the estimates andassumptions used by management to the best of its
knowledge at the date of the financial statements happen to differ from subsequent actual facts, the original
estimates and assumptions will be adjusted in the reporting period in which the facts have changed. The
consolidated half-year financial statements do not contain any significant new estimates and assumptions
used by management compared with the consolidated
financial statements as at December 31, 2017.
Income tax expenditure is estimated on the basis of
average actual tax rates during the current businessyear.

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 floorings, entrance matting systems, carpet
tiles, and needle felt floor coverings as well as the 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 of synthetic materials.
Corporate includes the costs of the Group headquarters
and certain items of income and expenses which are
not directly attributable to a specific business.
The Flooring Systems and Movement Systems divisions
are reportable segments. The identification of report­
able segments is based on internal management reporting to the Group’s Executive Chairman and its Chief
Executive Officer and hence on 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 and the Chief Executive Officer
assess the performance of the segments based on theiroperating result (EBIT). The net financial result is notallocated to the divisions since it is Corporate Treasurythat exercises central control over the financial result.

FORBO HALF-YEAR REPORT 201811

First half 2018

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

Flooring
Systems
462.7
462.7
58.4
72.6
574.1
6.8
3,276

Movement
Systems
206.2
– 0.1
206.1
24.1
29.3
292.2
3.4
2,439

Corporate/
Elimination
– 0.1
0.1

Movement
Systems
190.5
– 0.1
190.4
22.8

Corporate/
Elimination
– 0.1
0.1

22.8
27.4
240.4
8.5
2,320

– 7.2
– 6.9
19.8
0.0
41

606.3
67.9
– 85.0– 17.1
1.3
797.2
15.3
5,586

First half 2018
75.3
– 0.3
75.0

First half 2017
– 17.10.0– 17.130.6.2018
888.9
170.5
1,059.4

31.12.2017
832.8
234.7
1,067.5

– 7.2
– 6.8
22.6
0.0
42

Total
668.8
668.8
75.3
95.1
888.9
10.2
5,757

First half 2017

Unaudited, CHF m
Total net sales
Inter-segment sales
Net sales to third parties
Operating profit (EBIT) before provision for anti-trust proceedings France
Provision for anti-trust proceedings France
Operating profit (EBIT)
EBITDA
Operating assets
Capital expenditure
Number of employees (June 30)

Flooring
Systems
415.9
415.9
52.3
– 85.0– 32.7– 19.2
537.0
6.8
3,225

– 7.2

Total
606.3

Reconciliation of division results to the income statement and balance sheet:
Unaudited, CHF million
Total segment result (EBIT)
Financial result
Group profit before taxes

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

12

FORBO HALF-YEAR REPORT 2018

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
EuropeNorth, Central and South America
Asia/Pacific and Africa
Total net sales to third parties

First half 2018

Flooring Systems
First half 2017

353.4
71.9
37.4
462.7

318.6
65.8
31.5
415.9

04 Changes in the scope of consolidation
Forbo Finanz AG acquired 100% of the capital of Transmeca AS in Oslo, Norway effective May 2, 2018. Transmeca AS was an existing customer of Forbo that sells
and distributes fabric conveyor belts. Transmeca AS is
now an additional service point for the Movement Systems division in Norway. In the period under review, nofurther changes took place in the scope of consolidation.

Movement Systems
First half 2018
First half 2017
86.1
67.8
52.2
206.1

73.6
67.1
49.7
190.4

Financial liabilities consist of leasing obligations for fixed
assets carried in the balance sheet.
The CHF 23.7 million decrease in trade accounts pay­able, like the increase in trade receivables, was timingrelated. The other non-financial positions in current liabilities increased by CHF 20.8 million, especially for
accrued expenses and other liabilities. The largest difference versus year-end is due to the withholding tax
of CHF 9.0 million from the buyback of treasury sharesin June in ‘Other current liabilities’.

05 Balance sheet
The change in cash and cash equivalents can be foundin the consolidated cash flow statement. The CHF 58.4
million increase in trade and other receivables at June
30 versus year-end 2017 plus the CHF 9.5 million increase in inventories were mainly timing-related.
Property, plant, and equipment declined to CHF 258.8
million in the first half of 2018, with investments inproperty, plant, and equipment coming to CHF 10.1
million versus depreciation of CHF 16.8 million. Intangible assets declined by CHF 3.0 million in line withamortization to CHF 119.4 million.

Non-current liabilities increased by a total of CHF 8.0
million owing to higher provisions for litigation. Pension
liabilities decreased by CHF 2.1 million mainly owing toslightly higher discount rates in Switzerland and the UK.
Compared with December 31, 2017, shareholders’ equity decreased by CHF 13.1 million to CHF 648.1 million.
The increase in shareholders’ equity by the amount ofGroup profit of CHF 58.7 million is offset mainly by thedividend payout of CHF 32.4 million and treasury sharetransactions of CHF 34.3 million. The equity ratio stoodat 61.2% as per June 30, 2018.

FORBO HALF-YEAR REPORT 201806 Income statement

07 Cash flow statement

Net sales of CHF 668.8 million were 10.3% higher thanin the prior-year period. The sales increase came to 5.8%
in local currencies.

As in the prior-year period, owing to the timing-related
increase in net operating working capital, cash flowfrom operating activities was only slightly positive at
CHF 1.6 million. The item ‘Other adjustments for noncash items’ in cash flow from operating activities comprised in the prior-year period the creation of a provision of CHF 85.0 million for the antitrust proceedings
in France.

The cost of goods sold increased compared with theprior-year period owing mainly to higher raw material
prices proportionate to net sales.
Operating profit (EBIT) in the period under review cameto CHF 75.3 million, which was CHF 92.4 million higher
than the prior-year period. A provision of CHF 85.0 million for the antitrust proceedings in France was charged
to the prior-year period. Factoring out this effect, operating profit (EBIT) in the reporting period would havebeen CHF 7.4 million or 10.9% higher than the prior-year
period.
Financial income in the reporting period was negativeat CHF – 0.3 million owing to higher currency exchange
losses, compared with the breakeven result in the prior-year period.
Income tax amounted to CHF 16.3 million, corresponding to a tax rate of 21.7%. The tax rate in the prior-year
period came to 20.6% after factoring out the effect ofthe provision for the antitrust proceedings in France.
The resulting Group profit from continuing operations
came to CHF 58.7 million, which was CHF 4.8 million, or
8.9%, higher than the prior-year period, without theeffect of the provision for the antitrust proceedings inFrance.
Undiluted earnings per share on the basis of the av­
erage number of shares in circulation amounted to
CHF 34.49 in the reporting period (prior-year period:
CHF – 16.91). The Long-Term Incentive Plan (LTI) did not
result in any significant dilution effect. Diluted earnings
per share also came to CHF 34.49 (prior-year period:
CHF – 16.91).

Cash flow from investing activities comprises the cash
outflow of CHF 10.2 million for investments in property,
plant, and equipment and intangible assets, CHF 1.4
million in connection with the acquisition of the sharecapital of Transmeca AS in Norway, and cash inflow of
CHF 0.5 million from interest.
Cash flow from financing activities reflects primarily
payment of the dividend of CHF 32.4 million and treasury share transactions of CHF 24.4 million.

13

14

FORBO HALF-YEAR REPORT 201808 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
Exchange rates
Euro countries
USA
United Kingdom
Japan

EUR
USD
GBP
JPY

1
1
1
100

2018
1.17000.96711.33000.88902017
1.0766
0.99481.25220.8851

Exchange rateon balance-sheet date
30.6.2018
1.15400.99751.30460.902809 Events after the balance sheet date
Between the balance sheet date and the date of publication of this Half-Year Report, no events occurredthat could have a significant effect on the 2018 halfyear financial statements.

CalendarMedia and financial analysts’ conference for the 2018 business year:	2019 Ordinary General Meeting:	
Half-Year Report 2019:		

Tuesday, March 5, 2019
Friday, April 5, 2019
Friday, July 26, 2019

Our Half-Year Report is published in German and in English translation.

Forbo Holding Ltd
Lindenstrasse 8
CH-6340 Baar

Forbo International SA
Lindenstrasse 8
CH-6340 Baar

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

info@forbo.com
www.forbo.com

31.12.2017
1.17050.97631.32030.8674