Annual Report
2 0 0 0Forbo Holding SA
CH-Eglisau/Zurich
Telephone +41 1 868 25 50
Fax +41 1 868 25 51
Forbo International SA

Forbo Holding SA
CH-Eglisau/Zurich
Telephone +41 1 868 25 50
Fax +41 1 868 25 51
E-Mail info@forbo.com
www.forbo.com

CH-Eglisau/Zurich

Telephone +41 1 868 25 25
Fax +41 1 868 25 26

Corporate Communications
Ursula Leonhard
E-Mail ul@forbo.com

Forbo Annual Report 2000

Investor Relations
Gerold A. Zenger
E-Mail gz@forbo.com

For picture captions, see the inside front cover.
Our Annual Report comprises two parts, the general report andthe financial report. It is published in German and is alsoavailable in English.

Picture captions

The team is a decisive factor for success. Therefore this year’s
annual report features the Forbo leadership teams in the centerof the picture section.
Page 8Linoleum: design- and quality-oriented market appearance
generates growth.

Page 16

Cushion Vinyls: success through innovation, technology, andquality.

Page 22

Carpets: attractive design stimulates customer interest.

Page 28

Adhesives: Forbo offers customized solutions for a variety of
applications.

Page 32

Belting: Siegling belts are used worldwide to drive production
and logistics.

Imprint
Publisher: Forbo Holding SA, Eglisau/Zurich
Editing: Klartext_Medienbüro, Wuppertal (D)Design: Gottschalk+Ash Int’l
Photos: Daniel Gerber, Zurich
Wilhelm Mierendorf, Stuttgart (D), (photo on page 39)
Typesetting Litho Printing: Neidhart +Schön AG, Zurich
March 2001

Contents

2
3
4
6
10
18
24
30
34
36
38
39
40

Forbo
Key figures
Report of the Chairman of the Board of Directors
Report of the Chief Executive Officer
Forbo Group: strength through focus
Flooring: good position strengthened
Industry Specialties: effective concentration
Utilizing innovation to face the future
Human Resources
The Forbo share
Corporate bodies and management structure
Organizational structure
Our global presenceForboForbo was established in 1928 and is a worldwide producer of floor coverings
and industry specialties. Forbo employs some 6,000 people worldwide.
The Group operates an international network comprising of 28 manufacturing
companies in 12 countries and 70 marketing organizations in 26 countries.
Forbo’s Head Office is located in Eglisau/Zurich, Switzerland.
Forbo develops, produces and markets Floor Coverings in the form ofLinoleum, Cushion Vinyls, Carpets and Parquet Flooring whilst its Industry
Specialties include Adhesives and Belting.
Forbo’s products and systems are ideally tailored to the market. The Group’s
outstanding level of product, production, market and marketing know-how is
consistently exploited to tap optimum synergy potential, to promote innovation and for the targeted expansion of its market activities. Forbo is particularly committed to providing a customer-oriented service.
With its attractive product portfolio and well-established brand names Forbo
is the leader in many of its markets. This is particularly true of the market forlinoleum, an environmentally friendly material which lends itself to design.
Forbo is the number one in this promising segment with a world market shareof 60 %.
Forbo’s strategy consists of focusing on products and markets that can offer
growth prospects and high profitability, enabling the Group to assume or consolidate an excellent market position. Implementing this strategy has involved
the creation of four Strategic Business Units: Linoleum, Cushion Vinyls, Adhesives and Belting. By concentrating on promising core products and generating organic growth, but also by utilizing sound acquisitions and a consistently
market-oriented approach, Forbo’s aim is to sustainably increase its shareholder value.

2 Forbo Annual Report 2000

Key Figures

1)

2000

1999

2000

1999

Forbo Groupm EUR 2)m EUR 2)

m CHF

m CHF

Net sales

1,776.8

1,754.5

1,138.8

1,095.0

Flooring

1,009.9

997.0

647.3

622.2

Industry Specialties

589.5

544.6

377.8

339.9

Continued operations

1,599.4

1,541.6

1,025.1

962.1

Change on previous year (%)

+3.7

+3.5

Divested activities

177.4

212.9

113.7

132.9

Operating profit before depreciation

234.5

228.5 4)150.3

142.6 4)

Change on previous year (%)

+2.6

+7.0

As % of net sales

13.2

13.0

Operating profit before specific provisions

130.6

123.0

83.7

76.8

Continued operations

138.1

122.8

88.5

76.6

Change on previous year (%)

+12.5

+9.6

As % of operating assets (ROA)

11.0

9.5

Divested activities

–7.5

0.2

Operating profit after specific provisions

130.6

53.0

83.7

33.1

Consolidated profit before specific provisions

90.7

86.1

58.1

53.7

Change on previous year (%)

+5.3

+12.3
58.1

10.0

As % of average shareholders' equity

11.3

10.8

Consolidated profit

90.7

16.1

Capital investments

68.3

125.5

43.8

78.3

1,526.6

1,727.4

978.4

1,078.1

Shareholders’ equity

813.9

794.8

521.6

496.0

Equity ratio (%)

53.3

46.0

NumberNumber

Employees (31.12.)

5,832

6,829

–

1,063

Total assets

Employees divested activities

Free cash flow (before dividends)
Economic Value Added (EVA®)3)
Stock market capitalization (at 31.12.)

m CHF

m CHF

m EUR 2)m EUR 2)

85.7

67.7

54.9

42.3

20.8

18.5

13.3

11.5

1,075.6

1,105.1

689.4

689.7

CHF

CHF

EUR 2)EUR 2)Per share data
Earnings per share

61.98

58.444)39.72

36.47 4)

Shareholders’ equity

556.24539.43356.50336.66

Dividend per share

22.00 5)

22.00

14.10

13.73

Payout ratio (%)

35.5

37.6

1)

For explanatory notes, see Financial Report2)
CHF values translated at year-average rateof CHF 1.5603/1 EUR (2000) and 1.6023/1 EUR (1999) (Bloomberg)
3)
Registered trademark of Stern, Stewart & Co.
4)1999 relating to consolidated profit before specific provisions
5)
Proposal of the Board of Directors

3 Forbo Annual Report 2000

4)

Report of the Chairman of the Board of Directors
Ladies and Gentlemen,
2000 was marked
by the renewal

The 2000 financial year was dominated by the strategic renewal and our focus
on four core business units – Linoleum and Cushion Vinyls (Flooring), Adhesives and Belting (Industry Specialties). A particular feature was the redesignof these businesses from production-oriented to market-oriented units.
Progress was also made outside our core areas. Our Extruded Profiles, Decorative Films and Coated Textiles activities were sold to industrial buyers
occupying leading positions in the respective market segments, ensuring thatmost of the related jobs and production bases could be saved. Meanwhile,
our Carpets Business has been systematically expanded to create a pan-European organization with its own integrated production facilities. As part ofthis restructuring the German needlefelt floor coverings production base wasclosed down.
Strategy leads to good resultsGroup profit atrecord level

The focus of our growth initiatives was the further strengthening of our innovative power and of our competence in research and development, the initiation of marketing programs and the expansion of our overseas markets. Major
successes were achieved across all of these areas. Consequently, Forbo finds
itself in a stronger position and is well-equipped for the future. Taking into
account divestments, sales were up 4 % to CHF 1,600 million. An additional
CHF 177 million can be attributed to the areas divested in the course of 2000,
enabling the Group to post total net sales for the year of CHF 1,777 million.
Operating profit rose 6 % to CHF 131 million, whilst consolidated profit, at
CHF 91 million, was at an all-time high. During 2000 the Group succeeded in
reducing its net borrowing by a further CHF 48 million to CHF 157 million.
Coupled with the good consolidated profit this led to a further strengtheningof the shareholders’ equity base, so that Forbo is currently in excellent financial health.
Optimizing the capital structure

Share buybackplannedOur solid financial situation frees up significant assets for acquisitive growth.
At the same time, however, with a view to making more flexible use of ourshareholders’ equity, we would also like to offer our shareholders a share buyback scheme. This scheme, worth up to CHF 200 million, will be proposedto the General Meeting of Shareholders on April 24, 2001, by which time theremaining details will have been finalized. Part of the buyback is aimed at
reducing the share capital by issuing tradable put options. The remaining partwill be bought back at a later time by establishing a second trading line. This
demonstrates the responsible use of shareholders’ capital and at the same timeensures a sound financial scope of action for further expansion.

4 Forbo Annual Report 2000

Dividend
Unchanged
dividend

The net income for the year of Forbo Holding AG was CHF 35.4 million, compared with CHF 33.5 million in 1999. On the basis of this result, the Boardof Directors will propose to the General Meeting that an unchanged dividendof CHF 22 per registered share be paid to shareholders. The total dividend
distribution, at CHF 32.4 million, will therefore be the same as for 1999, thenumber of shares in circulation having also remained constant.
Personnel changes

Board of Directors

With effect from the closure of the General Meeting Dr. Ivo Gerster will beretiring from the Board of Directors. We would like to take this opportunity tothank him for his valuable contribution to the Board of Directors over thelast ten years.

Executive Board

This year will also see the well-earned retirement of one of our managers, Drs.
Antonie J. Pluijmert, Head of Cushion Vinyls, who will be leaving Forbo at
the end of May after 24 years with the company. We owe him a great deal of
thanks for his strong commitment to Forbo over many years.
Richard Pemberton, who has been responsible for linoleum business in the UK
to date, has been appointed Board member and will head the Cushion Vinyls
Business as from June 1, 2001.
Moving confidently into the future

Well-equipped for
ambitious objectives

Expectations about the future development of the world economy are partiallysubdued. What is required is an attentive approach and timely reactions. Not
least as a result of the strategic reorganization pushed forward in 2000, Forbo– in its capacity as a well-focused company – is well-equipped for the futureand for further performance growth. We have set ourselves demanding objectives, but the success of 2000 and the measures taken last year give us every
reason to face the future with optimism and self-confidence.

ThanksThe year 2000 was characterized by far-reaching restructuring and dramaticchange. We owe great thanks to all employees for their willingness to actively
support change and for their exemplary commitment. I would also like tothank our customers for their loyalty. And I would like to take this opportunity to extend very special thanks to our shareholders who have placed theirfaith in Forbo and accompanied us on our journey towards today’s unprecedented position of strength.

Karl Janjöri
Chairman of theBoard of Directors

5 Forbo Annual Report 2000

Report of the Chief Executive Officer
Strategy is effective
Convincing results

The year 2000 saw Forbo implement ambitious projects effectively. During thepast financial year both the operating profit, at CHF 131 million, and consolidated profit, reaching CHF 91 million, rose to new heights. Excluding turnover
attributable to the divested activities, we achieved a rise of the operating profitof 12 % up to CHF 138 million. These figures are clear indicators that we areon the right course, particularly as our strategy enabled us to achieve theseresults in what was a difficult environment. The rising prices of raw materials,
unfavorable currency developments, tough competition and the negative
trend in the business areas that have since been divested would otherwise have
prevented us from achieving such convincing results.
Dynamic implementation

Focus on attractive
markets

The financial year 2000 was, however, also a year of consolidation with the focus
on strategy implementation. At the heart of our strategic renewal is the focus
on attractive product lines and promising markets. What we aim to do isto secure our market leadership where it has already been achieved and build
on our strength, whilst moving into a leading position in markets where
we have recognized potential but have yet to build up a major presence. Our
overriding goal, therefore, is to achieve sustained profitable growth. To accomplish this, each business unit must contribute to increasing the value of theGroup as a whole and achieve long-term profitability. Whilst our business
units are highly autonomous, they are also responsible for utilizing synergies
across the units.

Changes in the
Carpets BusinessAs part of the restructuring of the Carpets Business, the process of reorientation involved a shift from purely national business units to a pan-European
organizational structure with integrated production facilities. An improved
product range, the streamlining of administration and sales, a focus on alimited number of production bases and a move away from non-profitable sales
components generated a positive effect in what was a difficult market context.
The future of this business within the Group remains undecided. Various
options are being examined, including expansion, sale or even the formationof an alliance. The business has gained a form and identity of its own and canlook to the future with self-confidence, irrespective of the option we will
choose.

Strategy implementation as planned

As far as implementing our strategy is concerned we are on schedule. Many
structural, organizational and personnel changes have been successfully
concluded and are increasingly achieving the desired effect. The implementation process is supported by the expansion of our incentive-based salarysystem for an extended group of executive employees, who are also eligible fora Group-wide training program on Value-Based Management. Innovative
activity is also being intensified, as a result of which several important productlaunches are now imminent, primarily new collections of linoleum andcushion vinyl flooring, as well as new carpet tile ranges.

6 Forbo Annual Report 2000

Greater efficiency
Goals in reach

Key performance indicators are developing as planned: the operating profit
before depreciation as a percentage of net sales (EBDIT on net sales), adjusted
to take into account of divestments, is now 14 %. Our aim is to achieve a
figure of 16 % by the year 2004. Operating profit as a percentage of operating
capital employed (EBIT on operating assets), excluding divestments, is currently 11 %, with a target of 15 % by 2004. At CHF 68 million, investments areclearly down on last year, whilst depreciation was more or less unchanged onlast year due to the very intensive investment activities in earlier years. Free
cash flow before dividend, at CHF 86 million, was up CHF 18 million on theprevious year. These figures document how we have achieved clear increases
in Group performance, consciously acting to reduce our sales basis by meansof divestment. Forbo is now equipped with a focused, market-oriented organizational structure and is ready for greater expansion.
Quality criteria for acquisitions

High demands

In addition to initiatives aimed at organic growth, very active efforts areunderway to seek out potential acquisitions. This is an area in which quality
has priority: acquisition candidates must be a good fit with our strategy andcorporate structure. Additionally, any such potential acquisitions must havestrong growth opportunities, be highly profitable and available at a realistic
price. Forbo has significant financial strength at its disposal and our strengthened core business is providing additional funds each year. We can andindeed plan to become involved in larger-scale acquisitions provided that thequality requirements are fulfilled.
OutlookPositive prospects

Looking towards 2001 we expect to see higher growth in our core businesscompared with the year under review. In particular, we expect to see an improvement in our Linoleum Business and a return to growth in Adhesives. As
far as Cushion Vinyls, Belting and Carpets are concerned, improving our
margins will take priority over volume growth. In the light of recent divestments and the resulting reduction in our sales basis, we anticipate an ongoing,significant improvement in our operating profit and consolidated profit. In
short, the Group has positive prospects from which we intend to profit for thetime to come!

Werner Kummer
CEO

7 Forbo Annual Report 2000

9 Forbo Annual Report 2000

The Forbo Group:
strength through focus
The Forbo Group achieved net sales of CHF 1,777 million in 2000
(compared with CHF 1,755 million in the previous year). Of thistotal, CHF 177 million were attributable to Extruded Profiles, Decorative Films and Coated Textiles Business, all of which were divested in the course of the financial year. In disposing of thesebusinesses, Forbo was consistently adhering to its policy offocusing on its core activities. On the basis of the activities that
we will continue to pursue, the Group achieved a 4 % sales increase to CHF 1,600 million. At CHF 131 million, the operating profit
reached new levels, although the 6 % increase was slightly
lower than originally anticipated. The results of the continued
operations were more positive. Here the operating profit roseby 12 % to CHF 138 million.
The Group succeeded in raising consolidated profit to CHF 91
million, which equates with 5 % of sales. These results represent record values in Forbo’s history.
Improved results incontinued activities

An overview of business development
Floorings accounted for CHF 1,010 million of sales with the operating profit
in this area reaching CHF 111 million and thus developing better than sales. The
portion of sales attributable to Industry Specialties – worth CHF 767 million –contributed CHF 40 million to the Group’s operating profit. The operating
profit excluding the divested activities would have been CHF 48 million. The

Belting and Adhesives Business Units experienced different trends over thecourse of the year.
Linoleum continues
on a positive trend

Sales in Linoleum products were up 2 % to CHF 411 million. Linoleum faredparticularly well in America and Asia, with a 27 % rise in demand. The
trend was also positive in the UK (+10 %) and in France (+4 %). Meanwhile,
there were falls in Switzerland, Germany and Scandinavia, primarily due tothe trend on the flooring market in general. The launch of a new, extended
Linoleum range planned for the beginning of 2001 led to a shift in sales tothe detriment of the fourth quarter of 2000. It was possible to maintain thegood margin in Linoleum Business.

Cushion Vinyls
resistantSales in Cushion Vinyls were up 2 % to CHF 346 million despite a continuationof difficult market conditions. Business in our main European markets remained subject to pressure but was compensated by export activities to Eastern Europe and overseas. Profitability suffered from pricing pressure andhigher raw material costs, with our production site in Scotland also facing
additional problems in the form of foreign exchange rates.

10 Forbo Annual Report 2000

Improved situationin Carpets

Sales in Carpets failed to rise above CHF 214 million due to the avoidance of
non-profitable business, but there was an improvement in the operating profit.

Adhesives underpressure from raw
material prices

Sales of CHF 206 million in Adhesives meant stagnation compared with theprevious year, in exchange rate-adjusted terms. The prime cause was thedevelopment of the markets in Germany and Switzerland, although businessdid pick up in the fourth quarter. Whilst the income situation remained satisfactory, the operating profit was CHF 4 million down on 1999, not least due tothe strong rise in the price of raw materials. The effect of price increases andcost reduction measures began to filter through in the second half of the year.

Dynamic
developmentof Belting

With a 14 % rise in sales to CHF 383 million, Belting can look back on a
dynamic year. The increases in Asia and the USA, at 30% and 20% respectively,
were new all-time records. The Business Unit’s operating profit improved
from CHF 20 million to CHF 28 million. Measures introduced to reduce overheads began to take effect, and the Belting Business Unit is growing increasingly efficient.

Higher cost factors

Overall, the Group’s sales growth tailed off in the course of the year after astrong first quarter, tracking the trends in the economy as a whole. The
increases in the price of raw materials became particularly apparent in thesecond half of the year and could not be passed on in the form of price increases until a later stage and even then only in some areas. The weak Euro had
an increasingly negative impact. On the other hand, however, the strength of
the US dollar helped alleviate the situation somewhat. The strength of thepound sterling was particularly unfavorable since Forbo is a net exporter fromthe UK. An increasing burden was placed on the Group by the poor courseof Business in Extruded Profiles, Decorative Films and Coated Textiles, all ofwhich were divested in the second half of 2000.
Net salesby division
FlooringIndustry Specialties
Divested activities*

*

m CHF
2000

Change99/00 %%

1,009.9
589.5
177.4

1.3
8.2
–16.7

56.8
33.2
10.0

Net sales 2000 until date of divestment

EBIT by division(m CHF)
FlooringIndustry Specialties
Divested activities
Group HQ/Consolidation

m CHF
2000

Change99/00 %

ROA*
2000 %

110.5
47.8
–7.5
–20.2

6.7
7.9
n/a
n/a

15.9
9.9
n/a
n/a
–50

*

–25

0

Return on Assets (EBIT in % of operating assets)

11 Forbo Annual Report 2000

25

50

75

100

125

150

Geographical distribution
Progress in internationalization

Major progress was made towards the aim of further internationalization of
our business activities. In line with the Group’s strategy, sales outside ofEurope were significantly bolstered, up 25 % and now accounting for about
23 % of net Group sales (in 1999 19 % on a comparative basis). The Linoleum
and Belting Business Units, boosted by the international economic situation
and a currency bonus, made the main contribution. Business in Switzerland
continued to fall slightly and now accounts for 6 % of sales following thedivestment of the Coated Textiles Business. The European component of total
sales is also down. Increases in France, the UK and Eastern Europe wereoffset by falls in Germany and Southern Europe.
Net sales by geographic area
(excluding divested activities)%

Change99/00 %

m CHF
2000

19.3
Benelux
17.9
Germany
13.6
Americas
11.0
Scandinavia
8.9Asia/Africa
8.7
FranceUnited Kingdom 6.0
Southern Europe 5.9
5.7
Switzerland
3.0
Eastern Europe

–1.3
–6.4
26.9
1.6
22.7
0.4
2.4
–2.0
–8.1
39.2

308.9
286.4
216.7
175.4
142.9
139.4
95.2
95.0
91.6
47.9
0

50

100

150

200

250

300

350

400

Capital investments
Successfulcommissioning oflarge-scale plants

The major plants set up in previous years in Hanover (D) (Belting) and in
Coevorden (NL) (Cushion Vinyls) were successfully commissioned. In thewake of this major investment, investment activity in the year under review,at CHF 68 million, was down significantly. Of the total investment volume,
CHF 20 million can be attributed to projects initiated in previous years. The
year 2000 saw the beginning of the investment in a new production line inReims in France for the manufacture of cushion vinyls with coated backing
and sound-absorbing properties.
Investments 1996–2000
Flooring

2000
1999
1998
1997
1996

m CHF

Industry
Specialties
m CHF

m CHF

42
76
78
74
83

26
49
81
80
57

68
125
159
154
140

Total

0

20

40

60

12 Forbo Annual Report 2000

80

100

120

140

160

180

Our production plants are in good condition and enable us to manufacture
at competitive costs. There is sufficient capacity in most areas to cope withfurther growth, although the renewal and expansion of IT equipment demands
significant funds. CHF 80 million have been earmarked for investment in theyear 2001.
Employees
Fewer people

At the end of 2000 Forbo employed 5,832 people worldwide. The year-on-yearchange – 6,829 people were employed at the end of 1999 – is mainly attributable to the reduction of consolidated companies following various divestments.
As far as our continued operations are concerned, an increase in the workforce
in America and Asia contrasts with a reduction in numbers in Europe. In Cushion
Vinyls, Carpets and Belting in particular, structural adjustments in Europe
forced a reduction in staff numbers. Social plans were provided for the employees affected by these measures, and in some areas compensation was provided
in the form of alternative offers of employment within the Group.
Employees by division
FlooringIndustry Specialties
Group HQ
Divested Activities*

2000

Change99/00 %

%

3,323
2,470
39
1,023*

–0.3
3.0
18.2
–3.8

48.5
36.0
0.6
14.9

At date of divestment

Divested activities
Buyers withperspectives

In line with its overall strategy the Forbo Group sold three non-core activities
in 2000 that continued to develop negatively: Extruded Profiles, Decorative
Films and Coated Textiles Business. The Group was able to find a buyer foreach of these areas with the industrial strength and entrepreneurial prospects
to successfully continue the activities in the future. We believe this to be agood solution for our employees and our production sites.

13 Forbo Annual Report 2000

Specific provisions
Mostly used

Of the specific provisions made in 1999 totaling CHF 70 million (after taxes), a
total of CHF 52 million was utilized, of which CHF 45 million can be attributed
to the divestment of the Decorative Films Business. Of the restructuringcosts associated with Belting and Carpets, CHF 3 million and CHF 4 million
respectively were drawn from the specific provisions. Provisions of CHF 9 million
formed at an earlier stage covered the remaining restructuring costs. Specificprovisions amounting to CHF 18 million still available at the end of 2000 canbe used for further adjustments as the Group continues to implement its strategy. The divestment of the Group’s Extruded Profiles and Coated Textiles Business did not affect the specific provisions, since valuation adjustments had been
made earlier for these measures.
Results

Clear improvement in continued
activities

In the first two quarters of 2000 in particular results were clearly up on 1999’s
figures. The second half of the year was weaker. The operating profit before
depreciation as a result of higher raw material costs and as a consequence ofthe negative development of the now divested activities increased only by 3 %.
The operating profit before depreciation in relation to net sales, at 13 %, wasunchanged on the previous year. However, adjusted by divestments there is anincrease to 14 %. Depreciation on fixed assets, amounting to CHF 99 million,
was slightly down on 1999, primarily due to lower investment levels. This
resulted in an operating profit after depreciation of CHF 131 million, 6% higher
than in the previous year. The change in the average translation rates had aslightly positive effect on net sales and a slightly negative impact on the operating profit due to the results mix. Divested activities reduced the operating profit
by CHF 8 million for the period up until the relevant disposals. The operating
profit for the continued activities rose by CHF 15 million to 138 million, corresponding to a return on capital employed of 11 %. Consolidated profit rose by
5 % to CHF 91 million on improved operating profit and better financial results. The profit calculated on the EVA® basis represents net income in relation
to average weighted capital costs and increased in 2000 by CHF 2 million to
CHF 21 million. Particularly satisfying was the development of the free cash
flow (before dividend), which increased by CHF 18 million to CHF 86 million.

14 Forbo Annual Report 2000

Positive effects on the free cash flow resulted from considerably lower investments of CHF 57 million compared to the previous year and from thedivested activities (CHF 6 million) which will bring an additional cash-inflowof CHF 4 million in the year 2001 and another CHF 17 million in the following
years. Negative effects came through from the cash effective restructuring
and divestment costs of CHF 10 million as well as from the reduction of tradeand other payables by CHF 16 million of the continued operations. The development of the free cash flow is also reflected in the balance sheet in a lower
level of net debt of CHF 157 million (1999: CHF 205 million). The equity
ratio rose from 46 to 53 %.
OutlookFurther increase inenterprise value

With an eye on the challenges of the future Forbo has created a clear structure.
By concentrating on core competences and the expansion of our extremely
sound financial basis, we are exceptionally well enterprise positioned to raisevalue further. The conditions required for rapid organic growth are now inplace. Forbo has a focused and market-oriented organizational structure andcan concentrate more intensively on expansion. The aim is for acquisitions
to play a part in this, with the requisite time and attention being devoted toover the next few years.
Free cash flow 2000
m CHF

Cash flow from operating activities 1)
Cash flow from investing / divesting activities2)
Free cash flow (before dividend)

146
–60
86
0

1)
2)

25

50

75

100

125

150

175

200

75

100

125

150

175

200

Relating to divested activities m CHF 1
Thereof from divesting activities m CHF 6
Free cash flow 1999
m CHF

Cash flow from operating activities
Cash flow from investing activities
Free cash flow (before dividend)

187
–119
68
0

25

50

15 Forbo Annual Report 2000

17 Forbo Annual Report 2000

Flooring: good position strengthened
Faced with difficult competitive conditions we succeeded inconsolidating our market share and thus our excellent positioning at a high level with sales of CHF 1,010 million (previous year:
CHF 997 million). The operating profit was up 7 % to CHF 111 million, a disproportionate rise in relation to sales. The first halfof the year was generally stronger for the sector than the second
six months, whilst competition grew increasingly intense.
LinoleumConsistent market
leadership

Faced with a general absence of growth in the floor coverings market, and withthe trend towards sophisticated, high-quality products – parquet flooring,natural stone and tiles in addition to linoleum – Forbo enjoyed another record
year, notching up 2 % growth to post sales of CHF 411 million. There were
varying trends in the individual regions: whilst sales in the Benelux countries
remained on a par with 1999, there was a slight drop in Germany, Austria,
Switzerland and Scandinavia. The situation was quite different in the UK,
France, Eastern Europe and the Far East, however, where a pleasing level ofsales growth was achieved. As far as the US market was concerned, we wereable to draw particular benefit from our new, design- and quality-oriented
market image for discerning customer groups and achieve a two-figure increase. Forbo has a world market share of 60 % for linoleum products, making
it market leader.

Design-oriented
positioning

Progress was made as far as the design-oriented positioning of linoleum
was concerned and we were able to expand further the leading position occupied by the Artoleum® collection. The second collection in the successful
Marmofloor series recorded two-figure increases. Meanwhile, our new maincollection Marmoleum® Global 1, which takes its inspiration from art andculture from across the world, will be launched at Domotex, the world’s major
trade fair in Hanover, Germany, in January 2001. The first half of 2001 will
see the comprehensive presentation of this collection at more than 60 events
across the world attended by architects and designers.

Market opportunities
in the USA

Particular efforts are still being made in the USA with the goal of capturing
this market and the extraordinary potential locked within it quickly andcomprehensively. Linoleum has until now accounted for a minute share of
approximately 0.1 % of the 2,300 million m2 of floor coverings sold annuallyon the US market. With the exception of a few European countries thissituation is basically mirrored worldwide. Yet linoleum is optimally placed toincreasingly win over new customers thanks to its practically limitless scope

18 Forbo Annual Report 2000

for design, its robustness – its hard-wearing properties are at the top of thescale – and its ability to meet even the toughest maintenance and hygiene
requirements. Linoleum is also one of the most environment-friendly floor
coverings around, since it is made almost exclusively from natural renewable
resources. One focus in all our markets is the communication of these very
product advantages as part of special marketing initiatives. Greater emphasis isalso being placed on the promotion of training for floor fitters to guaranteethat the products are handled correctly during the laying process. Based on
our product and design competence in linoleum we are fully determined to
seize the exceptionally promising market opportunities on offer.
Cushion Vinyls
Success withbrand products

The market continued to be marked by difficult conditions and was hit byexcess capacity and pricing pressure. A further obstacle was the intense competition posed by laminate flooring. Price concessions in high-volume businesswith little product differentiation and a deterioration in the image enjoyed bycushion vinyls were the result. Equipped with branded products such as
Novilon® we were able to escape these trends, although products in the lowerend segment fared badly. In view of this market development, we decommissioned the production line for cushion vinyls in Gothenburg, Sweden.

Positive developmentin product niches

Completely satisfactory, on the other hand, was the development in niche markets: floor coverings with sound-proofing qualities, marketed under the nameof Sarlon, and our Novilux ® products with their unique inlay chip technology
enjoyed a high level of demand. Colorex ®, a plastic flooring particularly suitedfor demanding industry applications, has excellent properties, the likes ofwhich are required in such growth industries as biotechnology, electronics, andclean room technology. Disproportionately large increases were recorded andwe succeeded in substantially increasing our production volume for Colorex ®.
Overall, we were able to maintain a position that far out performed the market,
actually achieving slight growth to record sales worth CHF 346 million in theprocess.
Carpets

Position maintained in a difficult
market

The carpet market was characterized by a further major drop in sales. Onceagain, the ongoing trend in favor of parquet flooring and laminate products
was a contributory factor. Faced with a continuation of the weak market
situation, featuring strong pricing and cost pressure not to mention excess
capacity, our sales dropped to CHF 214 million as a result of currency
movements compared with CHF 218 million in 1999.

19 Forbo Annual Report 2000

Strength in thecontract market

We did, however, succeed in achieving an appropriate level of sales growthin the commercial sector with sales to commercial premises, hotels and retail
outlets constituting a major area of business. This brings us and our design
expertise into contact with professional fitters and architects who in turn passon recommendations on our behalf. Whilst the distribution costs in thissegment are high, these are generally offset by better margins.

Restructuring
leads to result
improvement

Our main efforts in 2000 focused on increasing profitability and renewing our
product collections. With this in mind, non-profitable business areas andproducts were avoided to a certain extent so that sales took on a higher quality. As part of restructuring, the European-level coordination of production
has been introduced with individual sites focusing on specific product lines
and production techniques. The production of needlefelt floor coverings was
moved to the French plant in Reims, and the production facility in Wermelskirchen, Germany, was closed down. The sales organizations responsible forGermany, Switzerland, Austria, Southern and Eastern Europe have all beenplaced under the same management. All these measures will have a beneficial
effect on costs. Finally, the product range has been completely revampedwith the result that Forbo now has an internationally convincing, very welldesigned market range and image.
Parquet Flooring

Complementary
product

Our parquet flooring plant in Sweden was able to post satisfactory sales
growth of 8 % to reach CHF 39 million. We are the market leader in floor
coverings in Scandinavia. Parquet flooring is used to complement our otheractivities and to ensure that Forbo can operate as a one-stop supplier in theregion.
Net sales byproduct group
Linoleum
Cushion Vinyls
Carpets
Parquet Flooring

m CHF
2000

Change99/00 %

%

410.7
346.4
213.7
39.1

2.3
1.8
–2.3
7.7

40.7
34.3
21.1
3.9

20 Forbo Annual Report 2000

Outlook
Design and quality
competence in theforegroundOur plan for the year 2001 is to continue with the targeted implementation of
our strategy. We expect competition to continue to develop unevenly. With
regard to Linoleum the focus is on the global and design-oriented positioningof our market range and brand image, accompanied by further productinnovations. Our priority is then to push forward with our expansion process,above all in the exceptionally promising markets of the USA and Asia. As far
as Cushion Vinyls are concerned, we will above all demonstrate in the fieldof high-sought after branded products our innovative capability in order tofurther strengthen our presence in the quality segment. The focus in our
Carpets Business Unit in 2001 will lie in driving home our design skills andour quality in relation to products at the top end of the market, whilst we
will also be looking to add carpet tile products to our product portfolio as ameans of generating qualitative growth.

21 Forbo Annual Report 2000

22 Forbo Annual Report 2000

Industry Specialties:
effective concentration
The individual business areas that make up Industry Specialties
fared differently during the year under review. Sales in Adhesives,
despite being strong in previous years, stagnated, resulting in acorresponding diminution in profit, whilst a good increase insales and profit was achieved in Belting. On the basis of the activities that are to be continued, sales of CHF 590 million (previous
year: CHF 545 million) and operating profit of CHF 48 million(1999: CHF 44 million) were recorded, coupled with a consolidation of the Group’s market position. Activities that have since
been divested accounted for sales of CHF 177 million and an operating loss of CHF 8 million.
Adhesives
Results impaired by
raw material prices

Following robust sales growth over the last few years sales tailed off in 2000 at
CHF 206 million. Negative trends in Germany and Switzerland contrasted witha gratifying upturn in Eastern Europe as well as in non-European markets.
The effect of the Euro was clearly felt in the course of the year, losing morethan 5 % of its value against the Swiss franc. Operating profit was up 18 % to
CHF 20 million, a development that should be considered in conjunction
with the state of the industry as a whole, which has been showing only moderate growth worldwide with most European adhesives producers sufferingsignificant falls in profit compared with 1999’s results. The impact of rising
raw material prices was unmistakable. Rigorous measures on the cost side andan increase in the efficiency of production processes were able to take someof the sting out of this trend. The rise in production costs could not be passed
on to end-consumers in the form of price increases until the end of the year,
however, and even then the scope for higher prices was limited.

Lack of momentum
in key markets

The construction industry, one of our major customer groups, failed to generate growth on the major markets and actually declined in Germany. Floor
coverings such as laminates or parquet flooring that can be laid without theuse of adhesives acquired greater market share to the detriment of traditional
coverings with a correspondingly negative impact on adhesives for use inflooring. In this segment in particular we have access to a customer support
service in the form of user and system advice that provides a major competitive edge. This is something on which we wish to build. Among our industrial
customers, with the exception of the automotive sector, growth was marginalat best. The market was again marked by difficult competition, in some cases
spilling over into price wars. To combat this situation we avoided sales associated with insufficient margins.

24 Forbo Annual Report 2000

Products improved

We were able to make significant progress in the development of reactive
adhesives (hot melts in particular) and with regard to the environmental compatibility of our products. In conjunction with our industrial clients we
conducted promising large-scale trials in various applications with innovativeadhesive systems. The year also saw the successful market launch of new
welding rods for laying Forbo Linoleum flooring.

Focused organizational structure

As part of the strategic reorganization of the Group the Adhesives’ strategy wasrevised. In future we will be focusing on selected customer groups and applications; in other words on the profitable niche products within the vast range
of applications. Thus as of 2001 our Adhesives Business will be split into twoareas – floor/wall and industrial adhesives. The aim is to ensure a coordinatedpan-European approach to servicing the market. Our organizational structures
have been adapted with this change in mind and the staffing levels increased,
especially in terms of development and marketing. This will enable us to pool
our resources and utilize these internationally, thus building on our successful
positions at local level. Our ongoing focus on our production bases and ourconcentration on infrastructures should ensure that sales and income become
dynamic once more.
Belting

Strong increasein demand

Both industrial production and demand for logistical services have increased
the world over. And both phenomena have been driving growth in demand
for synthetic drive belts and conveyor systems. Substantial growth rates wereachieved in the following customer segments: parcel dispatch companies,
airports, the food industry and logistics. Meanwhile, the trend with regard tobelts for textile machinery is either devoid of growth or actually on the decline. As in previous years the trend towards price wars has grown increasingly
pronounced. With regard to large-scale projects in particular there has been agreat deal of pricing pressure, coupled with growing quality requirements.

Substantial growthin the USA

Sales were substantially improved, 14 % up on the previous year’s figure at
CHF 383 million. With regard to the operating profit, a strong increase by
38 % to CHF 28 million was recorded. Business in the USA proceeded positively
with the further expansion of our leading position. And after many years wealso succeeded in achieving a gratifying level of growth in Japan. European
business was uneven, but generally on the up. The production bottlenecks ofprevious years were eliminated with the commissioning of the new 4.5 meter
plant in Hanover, Germany, ensuring that sufficient capacity is now available.
The ongoing pressure on margins forced us to take specific steps in various
cost areas.

25 Forbo Annual Report 2000

New regional
structure

Our drive belt and conveyor system products, marketed under the name of
Siegling, were divided up into three regions: North and South America,
Europe and Asia. Each area – equipped with the necessary expertise, resourcesand designed in line with local requirements – is highly autonomous in its
operations. The newly appointed heads of these regional business areas arelargely responsible for coordinating among themselves such issues as theirmarket image, research and development and manufacturing capacity. Our useof resources and our structures have been systematically geared towards therespective markets. In Europe in particular we have simplified the very fragmented structures and created larger blocks. We are expecting major improvements from the concentration of manufacturing sites and the rationalization
associated with the reduction in staff numbers initiated in Hanover, Germany.

Customer-oriented
product development

The rising technical demands of our customers require a direct link between
the producer and the plant operator. Our research and development activities
are increasingly being influenced by direct customer contact. Using sophisticated product development we are in a position to meet these technical requirements and, for example, to produce belting that is both very strong andvery elastic. The increased use of processing belting, which is not used toconvey or to drive anything but as a functional component of a manufacturing
process, is the result of efficient development work in close proximity to thecustomer.
Net sales byproduct group
Adhesives
Belting
Divested activities*
*

m CHF
2000

Change99/00 %

%

206.3
383.2
177.4

–1.4
14.3
–16.7

26.9
50.0
23.1

Net sales 2000 until date of divestment

EBIT by business units(m CHF)
Adhesives
Belting
Divested activities

m CHF
2000

Change99/00 %

ROA*
2000 %

19.6
28.2
–7.5

–18.0
38.2
n/a

18.1
7.5
n/a
–15,0

*

–7,5

0

Return on Assets(EBIT in % of operating assets)

26 Forbo Annual Report 2000

7,5

15,0

22,5

30,0

37,5

45,0

Outlook
Good earnings
perspectives

In terms of Adhesives, it is our focus on selected market segments and theintensification of application development, together with distribution, thatwill achieve improved results and generate renewed growth. With regard to
Belting, achieving a further major rise in our earning strength takes precedence over non-profitable volume growth. The marketing by customer segments and their differentiated coverage focused on growth factors serve theimprovement of the sales quality. The cost reduction measures introduced in2000 will also have a positive effect, contributing to the attractiveness of thebusiness unit.
Divestments in line with strategy

Solutions foundIn September 2000 our Extruded Profiles Business, representing annual sales of
CHF 32 million, was sold to Aluplast GmbH in Ettlingen, Germany. Towards theend of November 2000, our Decorative Films Business worth some CHF 140
million in annual sales, was sold to the Dusseldorf-based Hindrichs-Auffermann
AG, one of Europe’s leading producers of wall coverings and decorative products. Then, in December 2000, our Coated Textiles Business with its production
site in Eglisau and with annual sales of approximately CHF 40 million, wassold to the French Ferrari Group. In all three cases it was possible to preserve
the majority of related jobs and sites. Overall, these disposals mean that wehave parted with activities from an area that achieved sales of CHF 212 million
in 1999. The EBIT margin for the divested activity was –4% in 2000 comparedwith +9% for the rest of the Group.

27 Forbo Annual Report 2000

28 Forbo Annual Report 2000

Utilizing innovation to face the future
It is our declared objective to step up our effort in the fields ofinnovation and development, and the required funds have been
made available for this push forward. This applies not only to
products but also to customer service and work processes.

Design, quality andtechnology

Information
technology
to be expanded

Product innovation
A major element of our future development will be the use of innovation to
expand our leading position in our core business. In terms of our Linoleum
Business, the new product collection Marmoleum ® Global 1 has been developed, with the market launch planned for the first half of 2001. This collection
offers an unprecedented range as far as color, structure and design are concerned and is a further step in our campaign to extend our linoleum applications to a broader customer base. A new foam-coated cushion vinyls collection
known as Novilon®/Novilux® has also been prepared. This draws on the opportunities provided by our new production plant in Coevorden, Netherlands,
and sets new benchmarks in product properties and design. The Coevorden
plant is also to be used in future for the manufacture of halogen-free products,
which are due to be launched on a test market with effect from the middleof 2001. In our Carpets Business, meanwhile, new products are primarily geared
towards commercial customers with new-look designer collections, carpet tiles
and particularly heavy-duty floor coverings for entrance areas. In Adhesives,
the focus has been on promoting the development of state-of-the-art products(reactive hot melts) whilst work is underway in Belting to introduce a fullnew range of drive and processing belts, some with new supporting fabrics, andto produce 4.5 m wide conveyor belts using our new plant in Hanover,Germany.
Investment in improved infrastructure
The renewal and standardization of IT solutions for Linoleum and Cushion
Vinyls have already begun. The Forbo Group’s Internet site is also being givena uniform look and is to be used as a future marketing and sales platform
whilst also providing global information on the company, its philosophy andproducts. The first version of the new website should be online by spring
2001. By extending our training programs for customers and product users,
our aim is to guarantee that the future of our products – and the promotionof linoleum in particular – is placed on a firm footing.

30 Forbo Annual Report 2000

Integral quality
understanding

Environmental reporton Group level

Quality, Environment and Safety
We consider quality as the basis of our relationship to customers, the environment, and to our employees. Only satisfied customers are loyal customers, andthis is the only way to be successful in the long run. A consistent understanding of quality will ensure reliability and trust. Satisfying the quality standard
ISO 9001 is an important tool to this end.
Forbo published its first Group environmental report in 2000. It portrays theresults of our efforts made for the protection of the environment and themethodology used for the meaningful collection and use of relevant data. The‘Resource Management Reporting’ system introduced at our production sites
measures the input and output per product and manufacturing process,and individual production sites. It is an effective tool for the identification of
improvement potentials regarding environmental and financial criteria. In
addition, the key operating units have been accountable for some years now
for their own commitment to the protection of the environment. Worthmentioning in this context is the fact that already 13 Group companies aremeeting the ISO 14 001 environmental standards, and that nine additional
companies will follow suit by 2002.

31 Forbo Annual Report 2000

33 Forbo Annual Report 2000

Human Resources
We shall reach our ambitious goals through the efficient interaction of all resources. Our dedicated employees and their joint
efforts will make an essential contribution to the success of the
Forbo Group.
Incentives for executive employees
Larger group of
executives enrolled

The performance-based remuneration system has been expanded for a larger
circle of executives. It includes some 130 senior managers whose base salary is
supplemented by a performance-oriented bonus system on the basis of annual
objectives. Part of the bonus is paid in shares. The goals are directly linked tosales, profit and other corporate targets of the Forbo Group and its divisions.
New training concept

Integral value
approach

Value-Based Management training is being introduced for key executives. The
first step was taken during the Group Conference 2000 when the conference
participants discussed the concept and resolved some practical training problems. The revised training concept will be handed over to the employees asfrom January 2001. Its main objective is to enhance the understanding of theintegrated value approach concept and the associated financial figures, andto recognize and implement their significance in one’s own remit.

Forbo Trophy
Excellence rewarded

The Forbo Trophy is awarded every year to a Group company who has demonstrated an outstanding performance. The competition for the Forbo Trophy
shall bring about business excellence in the sense of a fair competition amongequals. The first winner of this new Forbo award is Forbo Helmitin SA at Surbourg, France. With only 100 people, this subsidiary reached a strong positionin the French adhesives market and convinced not only by good earnings but
also by an average sales increase of 8 % in recent years.

34 Forbo Annual Report 2000

Group Conference
Platform forcross-organizational contacts

As an international company, it is important to Forbo to establish contacts
among the Group companies worldwide in the context of individual meetingsof leaders. In 2000 a Group Conference was organized to this end at Schluchseein the Black Forest, Germany, which was attended by more than 100 senior
managers of the Forbo Group. The Conference was also used as a platform forpresenting the Group’s new corporate image. The by now consistent corporate
identity conveys Forbo’s new identity and structure both within and outside of
the company.
Employees by Business Unit
SBU Linoleum
SBU Cushion Vinyls
BU Carpets
SBU Adhesives
SBU Belting

Headquarter

2000

Change99/00 %

%

1,999
730
594
691
1,779
39

1.0
1.1
–6.2
3.6
2.7
18.2

34.3
12.5
10.2
11.9
30.5
0.6

SBU Strategic Business Unit
BU Business Unit

Employees by economic areas%

Change99/00 %

2000

27.1
Benelux
19.5
Germany
9.3
Scandinavia
9.2
America
8.9
Switzerland
7.7
France7.3
Asia/Africa
United Kingdom 7.3
Southern Europe 3.2
0.5
Eastern Europe

2.7
–4.4
–1.3
8.5
–1.3
4.7
8.1
–5.4
6.9
–6.7

1,581
1,139
543
538
516
448
428
424
187
28
0

200

400

35 Forbo Annual Report 2000

600

800

1 000

1 200

1 400

1 600

The Forbo share
Forbo has adopted a policy of transparency and openness of information aimed at maintaining and nourishing a basis of trust withshareholders and investors. In this sense we prepare financial
information transparently to reflect the structure of our businessand the origin of our returns.
Share priceNew strategy not
yet reflected

The development of the Forbo share price in the year under review was inconsistent. Starting from the level reached towards the end of 1999 the price wasinitially declining during the first half year. Among the reasons were profittaking by Anglo-Saxon investors in portfolio restructuring moves and the factthat at that time companies of the New Economy were favored by investors.
Besides, blue chips were again becoming more interesting to investors. The
Forbo share could recover some lost ground in the second half year. However,
it is unlikely that the price of CHF 730 at the end of the year 2000 is alreadya reflection of the expectations of the new strategy.
The Forbo Share in comparison to the SPI
CHF

SPI

800

5 500

750

5 250

700

5 000

650

4 750

600

4 500

550

4 250

500

4 000
1.1.19991.1.2000

31.12.2000

SPI adjusted

Forbo registered share

Shareholders
Nearly a plus of
1,000 shareholders

At the end of December 2000, 3,509 shareholders were registered in the Forbo
Holding SA share register, 946 more than in the previous year. To the Company’s
best knowledge, no shareholder owns more than 5% of the voting rights.
In accordance with the Articles of Association of Forbo Holding SA, no single
shareholder is allowed to execute more than 8% of all voting rights.

Diary dates

General Meeting of Shareholders: April 24, 2001
Autumn press conference:
November 6, 2001
Financial analysts’ meeting: November 6, 2001

36 Forbo Annual Report 2000

2000

1999

1998

1997

1996

Share capital
Issued registered shares in circulation (of CHF 50)
of which held by Forbo

NumberNumberNumberNumberNumber

1,473,416

1,473,416

1,473,416

1,473,416

1,465,800

10,406

9,894

18,592

9,247

9,127

40,134

40,134

40,134

40,134

46,134

CHF

CHF

CHF

CHF

CHF

Reserve shares (without voting and dividend rights)
Registered shares (of CHF 50)

Nominal capital
Total

75,677,500 75,677,500 75,677,500 75,677,500 75,596,700

of which issued and outstanding shares 1)

73,670,800 73,670,800 73,670,800 73,670,800 73,290,000

of which issued and non-outstanding shares

2,006,700

2,006,700

2,006,700

2,006,700

2,306,700

Data per share
CHF

CHF

CHF

CHF

CHF

556

539

542

517

522

62

58

52

42

42

222)

22

22

19

19

High

3.5

3.9

5.1

3.7

4.1

Low

2.7

2.9

2.4

2.9

3.5

36

38

42

45

46

Shareholders’ equity Group
Consolidated profit(1999 before specific provisions)1)
Gross dividend
Gross dividend return (%)
Payout ratio 3) (%)

Stock market statistics
Share prices
Stock market capitalization (m)

High

CHF

CHF

CHF

CHF

CHF

828

764

900

654

550

Low

620

569

435

514

462

High

1,220

1,126

1,326

959

806

914

838

641

753

677

1,076

1,105

884

880

792

Low
Year-end1)

See also Financial Report, ‘Notes to the Consolidated Financial Statements’, page 15,‘Earnings per share’, page 17
Proposal of the Board of Directors to the General Meeting of Shareholders
3)
Gross dividend as % of consolidated profit before specific provisions
2)

37 Forbo Annual Report 2000

Corporate bodies and management structureA

Committe
Term of office expires

Chairman
CH-Herrliberg

2002

CH-Hurden

2002

Vice-Chairman
Dr. Willy Kissling
Members
Dr. Anton H. Bucher

CH-Kuesnacht

2002Peter van Duursen

NL-Driebergen-Rijsenburg

2002

Dr. Ivo Gerster

CH-Binningen

2001

Dr. Gerd Hofmeister

D-Hanover2002

Michael Pieper

CH-Hergiswil

2004

Dr. Paul Tanos

A-Wien2003

Prof. Dr. iur. Rolf Watter

CH-Zurich

2003

Secretary
Andreas P. Lerch

CH-Huentwangen

A: Audit and Finance Committee
B: Corporate Development Committee
C: Committee for Human Resources and Remuneration

Group Executive Board

ChairmanWerner Kummer

Chief Executive Officer (CEO)Deputy Chairman
Werner von Kuensberg

SBU Adhesives

Members
Dr. Jan Lipton

SBU Belting

Drs. Antonie J. Pluijmert

SBU Cushion Vinyls (until May 31, 2001)

Richard Pemberton

SBU Cushion Vinyls (as of June 1, 2001)

Jan E. Sångberg

Corporate Business Development ( CBD)Marien A. G. Weijenberg

SBU Linoleum

Gerold A. Zenger

Chief Financial Officer ( CFO)Group and Statutory Auditors

PricewaterhouseCoopers AG

C

Mitglied

Board of Directors Forbo Holding AG

Karl Janjöri

B

Zurich38 Forbo Annual Report 2000

Organizational structure

Chief Executive Officer

Chief Financial Officer

Corporate Business
Development

SBU Linoleum

SBU Adhesives

SBU Cushion Vinyls

SBU Belting

BU Carpets

Division Flooring
Division Industry Specialties
SBU Strategic Business Unit
BU Business Unit

from left to right:– Marien A. G. Weijenberg,
Executive Vice President Linoleum– Gerold A. Zenger, Executive Vice
President and CFO– Jan E. Sångberg, Executive Vice President
Corporate Business Development– Werner Kummer, CEO and President– Dr. Jan Lipton, Executive Vice President
Belting– Drs. Antonie J. Pluijmert,
Executive Vice President Cushion Vinyls– Werner von Kuensberg,
Executive Vice President Adhesives

39 Forbo Annual Report 2000

Forbo’s global presenceGroup Headquarters
Forbo Holding SA
Production and Sales

FlooringIndustry Specialties
Sales

FlooringIndustry Specialties

40 Forbo Annual Report 2000

Picture captions

The team is a decisive factor for success. Therefore this year’s
annual report features the Forbo leadership teams in the centerof the picture section.
Page 8Linoleum: design- and quality-oriented market appearance
generates growth.

Page 16

Cushion Vinyls: success through innovation, technology, andquality.

Page 22

Carpets: attractive design stimulates customer interest.

Page 28

Adhesives: Forbo offers customized solutions for a variety of
applications.

Page 32

Belting: Siegling belts are used worldwide to drive production
and logistics.

Imprint
Publisher: Forbo Holding SA, Eglisau/Zurich
Editing: Klartext_Medienbüro, Wuppertal (D)Design: Gottschalk+Ash Int’l
Photos: Daniel Gerber, Zurich
Wilhelm Mierendorf, Stuttgart (D), (photo on page 39)
Typesetting Litho Printing: Neidhart +Schön AG, Zurich
March 2001