FORBO GROUPPRESENTATION BUSINESS YEAR 2023

MEDIA AND FINANCIAL ANALYST MEETINGTUESDAY, MARCH 5, 2024

This E. Schneider
Jens Fankhänel
Andreas Jaeger

Chairman of the Board of Directors
Chief Executive Officer
Chief Financial Officer

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DISCLAIMER

By attending the meeting where this presentation is made or by reading the presentation slides, you agree to be bound by the following limitations:
The information in this document has been prepared by Forbo. It does not constitute a recommendation regarding the securities of Forbo.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of theinformation, or opinions contained herein. Neither Forbo nor any of Forbo's advisors or representatives shall have any responsibility or liability whatsoever (fornegligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The
information set out herein may be subject to updating, completion, revision, verification, and amendment, and such information may change materially.
This presentation is based on the economic, regulatory, market, and other conditions as in effect on the date hereof. It should be understood that subsequentdevelopments may affect the information contained in this document, which neither Forbo nor its advisors are under an obligation to update, revise, or affirm.
The information communicated in this document contains certain statements that are or may be forward looking. These statements typically contain words such as"will", "expects“, and "anticipates“, and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to eventsand depend on circumstances that will occur in the future. Investment in Forbo will also involve certain risks. There may be additional material risks that are currently
not considered to be material or of which Forbo and its advisors or representatives are unaware. Against the background of these uncertainties, readers should not relyon these forward-looking statements. Forbo assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.
This document and the information contained herein does not constitute an offer or invitation to purchase any securities of Forbo. In particular, it does not constitute aprospectus in the sense of article 652a or 1156 of the Swiss Code of Obligations, respectively, nor does it constitute a listing advertisement in the sense of the Listing
Rules of the SIX Swiss Exchange. The securities of Forbo have not been and will not be registered under the US Securities Act of 1933, as amended (the "SecuritiesAct"), and may not be offered, sold, or delivered within the United States or to US persons absent from registration under or an applicable exemption from theregistration requirements of the United States securities laws. Neither these slides nor any copy of them may be taken or transmitted into or distributed in Canada,Australia, Japan, or any other jurisdiction which prohibits the same, except in compliance with applicable securities laws. Any failure to comply with this restriction may
constitute a violation of United States or other national securities laws.
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AGENDAWELCOME & INTRODUCTORY REMARKSTHIS E. SCHNEIDER

FINANCIAL RESULTS 2023

ANDREAS JAEGERACTIVITIES & FOCUS

JENS FANKHÄNEL

OUTLOOK 2024

THIS E. SCHNEIDERQUESTIONS & ANSWERSMedia and financial analyst meeting3

THIS E. SCHNEIDER
WELCOME & INTRODUCTORY REMARKSMedia and financial analyst meeting

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FORBO GROUP
2023 IN A NUTSHELL– Geopolitical and macroeconomic situation deteriorated since Q3 2023
– Challenging market environment impacted demand– Strong negative currency effects on net sales and EBIT
– Solid sales price increases– Strong free cash flow generation– Innovative and sustainable products launched– Strategic investment projects well on track

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FORBO GROUPFINANCIAL PERFORMANCE 2023

Lower net sales due to restrained demand
Net sales decrease of 2.9% in local currencies
Strong negative currency effects
CHF 80 million on net sales; CHF 10 million on EBIT
Double-digit EBIT margin
11.1% (2022: 10.3%, including one-time impact)
Strong free cash flow generation
CHF 115.9 million (2022: CHF 50.5 million)

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ANDREAS JAEGERFINANCIAL RESULTS 2023

Media and financial analyst meeting7FORBO GROUPFINANCIALOVERVIEWINCOME– INCOMESTATEMENT FULL YEAR 2022
CONSOLIDATEDSTATEMENTCHF MILLION

2023

2022

∆

Net sales
Gross profit

1,175.2
401.7

1,293.2
440.8

34.2%

34.1%

–9.1%
–8.9%

–271.8179.9–308.2193.4– Due to lower sales volumes (–9%), net
sales declined by 2.9% in local currencies– Europe –3.3%– Americas –8.0%– Asia/Pacific +6.6%

–7.0%

15.3%

15.0%

– Gross profit margin maintained despite
lower volumes

EBIT margin

–50.0
129.9

–60.8
132.6

–2.0%

11.1%

10.3%

– Significantly higher personnel and energy
cost

Financial result
Group profit before taxes
Income taxes
Group profit

+1.9
131.8
–29.5
102.3

–1.6
131.0
–29.6
101.4

Earnings per share undiluted in CHF
FTE

72.55
5,190

71.76
5,390

Gross profit margin
Operating expenses
EBITDAEBITDA margin
Depreciation and amortization
Operating profit (EBIT)

+0.6%
+0.9%
+1.1%
–3.7%

– Increased sales prices (+6%) mostly
compensated for cost increases– Operating result impacted by lower sales
volumes and underutilization of capacities– Double-digit EBIT margin– Further reduced workforce

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FORBO GROUPCONSOLIDATED BALANCE SHEETCHF MILLION

2023

2022

Non-current assets

378.2

388.6

Current assets
Cash and cash equivalents
Working capital

523.2
69.1
454.1

571.6
46.7
524.9

Total assets

901.4

960.2

Shareholders‘ equity
Equity ratio

553.7
61.4%

550.1
57.3%

Total liabilities
Current liabilities
Non-current liabilities

347.7
219.3
128.4

410.1
291.6
118.5

Total shareholders‘ equity and liabilities

901.4

960.2

– Solid balance sheet with net cash ofCHF 69.0 million (exclusive leasing)– Own shares totaling CHF 81.8 million– Substantially improved net working
capital– Solid equity ratio

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9FORBO GROUPCONSOLIDATED CASH FLOW STATEMENT

CHF MILLION

2023

2022

Cash flow from operating activities
Cash flow from investing activities

160.0
–44.1

80.6
–30.1

Free cash flow

115.9

50.5

Cash flow from financing activities

–87.9

–93.9

– Significant higher cash flow fromoperating activities due toimproved inventory management– Increased investment activities instrategic projects

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FORBO GROUPCAPITAL EXPENDITURE

CHF MILLION

454036

Wide-ranging investments combining sustainability
and efficiency improvements as well as targetedcapacity expansions

38
REPLACEMENT
52%

31

2023
48%
RATIONALIZATION& EXTENSION
2019

2020

2021

2022

2023

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JENS FANKHÄNEL
ACTIVITIES & FOCUS

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FORBO GROUP
2023 MARKET ENVIRONMENT AND MEASURES– Europe severely impacted by the economic downturn– No market recovery in China– Development in USA below expectations– Measures to counteract market development– stringent implementation of efficiency measures and strict resourcesmanagement– optimized sales and production planning– reduced workforce– launch of innovative and sustainable products– increased key account and segment focus

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FLOORING SYSTEMS
2023 IN A NUTSHELL– Challenging market environment for the building industry– restrained construction activity caused by inflationary cost increases andhigh interest rates– shift in renovation projects towards energy saving investments– weak demand in three main countries (France, Germany, and USA)

– Net sales in local currencies declined by 3.1%
– Europe –3.4%– Americas –7.0%– Asia/Pacific +6.6%– Strong negative currency effects on net sales of CHF 54 million (–6.2%)– Solid sales price increases in a challenging market environment– EBIT margin of 11.9%– Expansion of Flotex production USA
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FLOORING SYSTEMSATTRACTIVE COLLECTIONS– Linoleum– “marmoleum cocoa” launched in May with cocoa bean husks;
for the first time with post-consumer recycled content– “marmoleum solid” prepared for launch in January 2024, high-quality
collection comprising 4 design families; containing post-consumer
recycled content– Vinyl– “surestep” safety flooring with new surfaces and attractive colors
prepared for launch in early 2024

– Textile– “tessera union” carpet tiles launched in September with new colors anddesigns; mainly developed for office environments– “flotex next” with bespoke digital designs and for the first time as loose
lay option, addressing needs of hospitality, retail, leisure environments;
launched in September

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MOVEMENT SYSTEMS
2023 IN A NUTSHELL– Reduced customer spendings in an uncertain economic environment– reduced demand in the logistics segment with over-proportional impact in the USA– no market recovery in China– low market demand in Germany, strong deterioration in Q4 2023

– Net sales in local currencies declined by 2.6%
– Europe –2.9%– Americas –9.0%– Asia/Pacific +6.6%– Negative currency effects on net sales of CHF 26 million (–6.2%)– Solid sales price increases in a challenging market environment– Lower capacity utilization weighs on result– EBIT margin of 11.7%– Second production line in China and modernization of production in JapanMedia and financial analyst meeting

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MOVEMENT SYSTEMSNEW PRODUCTS AND SERVICE CENTERS– Three new “fullsan” homogenous belt types for the foodindustry– “transtex” strong belt mainly for agricultural harvestingprocesses of fruit and vegetables as well as processing of meat
– Two new “transilon” conveyor belts mainly for logistics andairport applications (content from recycled PET bottles andwith AmpMiser energy saving coating)– New established service centers in Lyon/France (industrialproduction), Vitoria/Spain (automotive industry) andFlorida/USA (food industry)Media and financial analyst meeting17

FORBO GROUPSUSTAINABILITY

Flooring Systems

Movement Systems

Electricity used in plants from renewable sources

TÜV Rheinland confirmed up to 50% energysavings on AmpMiser belts

Climate positive linoleum, cradle to gate
Numerous photovoltaic systems installed
Reduction of Scope 1 and 2 CO2 emissions by 36%
since 2019

Further process belts manufactured withrecycled PET content

Back to the floor programs offered in 13 countries
Average portion of renewable, recycled, or abundantmaterials in flooring products represents 50%

Group
First Group-wide sustainability report

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FORBO GROUPPRIORITIES 2024

– Competitive portfolio
Introduction of attractive products and services supported by tailored marketing campaigns– High service levels
Continuous operational excellence initiatives in all areas– Proximity to customers
Intensified key account activities and increased sales and marketing efficiency– Ongoing efforts for sustainable solutionsExpansion of share of renewable and recycled raw materials in our products– Strategic investment projects– expansion of Flotex production in Hazleton/USA, extending our manufacturing footprint (Flooring Systems)– ramp-up of second production line in Pinghu/China (Movement Systems)– complete modernization of manufacturing site in Fukuroi/Japan (Movement Systems)

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THIS E. SCHNEIDEROUTLOOK 2024

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FORBO GROUPSOLID FOUNDATION– Well positioned to face the current challenging market
environment– healthy financial base with positive net cash position– proven strategy– leading market positions– Ensure continued competitiveness and create thenecessary basis to benefit from growing demand– targeted investments– innovative products and services– strategic initiatives

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FORBO GROUPFINANCIAL OUTLOOK FY 2024

Currently there is no sign of a market recovery in the shortterm. This will continue to challenge us in all areas of theorganization.
Provided the geopolitical and economic environment
does not change significantly, we expect– net sales and Group profit to grow in local currencies– with foreign exchange rates at the current level, net sales ofaround CHF 1.2 billion and Group profit of up to CHF 110
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FORBO GROUPPROPOSALS TO THE ORDINARY GENERAL MEETING– Dr. Peter Altorfer will not be standing for re-election at the 2024 Ordinary
General Meeting– The Board of Directors will propose two new Board members for election–Jörg Kampmeyer
Experienced executive with expert knowledge in the global construction materials industry, as wellas in the areas of marketing and digitalization; Managing Partner at Gebr. Knauf AG, one of theworld’s biggest producers of construction materials with a turnover of approximately EUR 15 billion–Bernhard Merki
Extensive industrial and leadership experience in sectors related to Forbo’s activities; entrepreneurwith various Board memberships, among others, Chairman of EMS Chemie Holding AG– Increase of dividend to CHF 25 per share (previous year: CHF 23), corresponding
to a payout ratio of 34%

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QUESTIONS & ANSWERSMedia and financial analyst meeting24