MEDIA RELEASEAD HOC ANNOUNCEMENT PURSUANT TO ARTICLE 53 OF THE SIX EXCHANGE REGULATION LISTING RULES

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Net sales and volume growth impacted by difficult market environment – continued
negative currency effects on net sales and earnings – double-digit EBIT margins
maintained – equity ratio further improved
The Forbo Group – a leading manufacturer of floor coverings, building and construction adhesives,
as well as belts for power transmission and conveyor belt solutions – reported net sales of CHF 570.3
million in the first half of 2024 (prior-year period: CHF 615.2 million), representing a decrease of 3.7%
in local currencies (–7.3% in the corporate currency). Operating profit (EBIT) declined by 17.8% toCHF 61.8 million (prior-year period: CHF 75.2 million) with an EBIT margin of 10.8% (prior-year period:12.2%). Group profit stood at CHF 48.4 million (prior-year period: CHF 57.4 million).

Baar, July 26, 2024
Forbo looks back on a challenging first half of2024. Market momentum slowed, resulting in adecline in demand and volume in comparison
with a solid first half of 2023. Negative currency
effects continued to impact net sales andearnings.
The past few months have seen us launch
attractive products in both divisions that meet
our high sustainability standards. We put ourfunds and resources to targeted use in an entrepreneurial way and implemented operational
excellence initiatives in a focused manner.
Investments in product developments, production technology, and strategic projects werecontinued in a systematic way.

Slight decline in net sales in local currencies
With net sales of CHF 570.3 million in the firsthalf of 2024 (prior-year period: CHF 615.2
million), Forbo registered a decrease in local
currencies of 3.7% (–7.3% in the corporatecurrency). Compared with the first half of 2023,
the net sales development in local currencies
for the regions were as follows: the Americas+2.2%, Asia/Pacific –4.8% and Europe –5.4%.
Investing activity among Forbo’s customers
remained cautious, which led to muted demandand correspondingly more intense competition.

Major impact of currency effects on
net sales and earnings
The conversion of local results into the corporate currency exposed Forbo to considerable
currency-related negative impacts. These cameto CHF 22 million in net sales and CHF 3 million in EBIT. Both divisions were affected to asimilar degree. Currency effects mainly camefrom the conversion of the euro, the US dollar
and the Japanese yen.

Operating result impacted bya decline in volumes
Operating profit before depreciation and amortization (EBITDA) came to CHF 86.8 million(prior-year period: CHF 102.8 million), corresponding to a decline of 15.6%. The EBITDA
margin decreased accordingly to 15.2% (prioryear period: 16.7%). Operating profit (EBIT)
declined by 17.8% to CHF 61.8 million (prioryear period: CHF 75.2 million) with an EBIT
margin of 10.8% (prior-year period: 12.2%).
The decline in volumes of 3.4% and the associated lower capacity utilization of production
plants, negative currency effects and higher
personnel cost due to inflation had a significant
impact on the operating result compared withthe first half of 2023. This was only partiallyoffset by cost savings and optimized processes.
Despite intense competition, sales prices moreor less remained stable in comparison with theprior-year period (–0.3%).
Group profit
On the basis of the lower operating profit, ahigher financial result, and a constant tax rate,
Forbo posted a Group profit of CHF 48.4 million (prior-year period: CHF 57.4 million),corresponding to a decline of 15.7%. Earnings
per share (undiluted) decreased by 15.2% toCHF 34.36 (prior-year period: CHF 40.54).

Equity ratio remains strong
Equity at the end of June 2024 stood at CHF
599.0 million (year-end 2023: CHF 553.7 million), corresponding to an increase of 8.2%. The
equity ratio was 62.3% (year-end 2023: 61.4%).

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Solid balance sheet
As at the end of June 2024, Forbo was debt-freeand had net cash amounting to CHF 40.0 million (year-end 2023: CHF 69.0 million). Thisdecline was mainly due to the dividend payout
and the seasonal increase in net workingcapital. In addition, Forbo holds treasury sharesworth CHF 74.0 million, based on the shareprice at end-June 2024. Cash flow from operating activities came to CHF 21.6 million (prioryear period: CHF 33.0 million). On the one
hand, this development is attributable to thelower Group profit and, on the other hand, wedeliberately built up inventories in the first halfyear 2024 in order to ensure delivery capability
in the summer months.

Performance of the divisions andfocus for the second half of 2024
The Forbo Flooring Systems division reported
net sales of CHF 389.2 million in the first half of2024 (prior-year period: CHF 415.9 million),
which corresponds to a decline of 2.9% in local
currencies (–6.4% in the corporate currency).
The subdued activity of the construction industry due to persistently high construction costand interest rates was clearly discernible in bothnew builds and renovations. The three regions
reported the following net sales development inlocal currencies: Europe –4.3%, the Americas+5.5% and Asia/Pacific –6.0%.
In Europe, the core markets of Germany and theNetherlands recorded the largest declines. TheUnited Kingdom enjoyed slight growth while
Switzerland, Italy, Spain, and smaller markets
in Eastern Europe were able to maintain orslightly increase their net sales levels. All othermarkets experienced declines to varying degrees. In the Americas, we recorded a significant increase in net sales in the United States,
particularly as a result of growing local demandin the education and healthcare segments. In
Asia/Pacific, net sales in China, Australia, andSouth Korea declined, while growth was recorded in Japan and smaller markets in Southeast
Asia.
The building and construction adhesives activity
reported a slight decline in net sales.
Newly launched products reported healthygrowth, particularly with regard to the climatepositive linoleum collection “marmoleum solid”
and projects for conductive vinyl floor coverings(ESD flooring) for workspaces such as data centers and operating rooms.
Operating profit (EBIT) declined by 8.4% toCHF 48.1 million (prior-year period: CHF 52.5million). The negative volume growth and corresponding decline in the capacity utilization ofproduction plants, the higher personnel cost
due to inflation, higher energy and freight cost,and negative currency effects had a significantimpact on the operating result. This was partially mitigated by a slight easing of raw material
prices, an increased share of sales of highmargin products and a strict cost management.
Sales prices were slightly lower than in theprior-year period. Despite these developments,
the EBIT margin at 12.4% was almost on parwith the prior-year period (12.6%).
In addition to increasing volumes and improving profitability, the focus for the second half of2024 will be on the introduction of further
innovative collections. A high level of productavailability, reliable delivery quality and proximity to customers will remain key successfactors.
The Forbo Movement Systems division reported
net sales of CHF 181.1 million in the first half of2024 (prior-year period: CHF 199.3 million),
which corresponds to a decrease of 5.2% in local
currencies (–9.1% in the corporate currency).
The challenging market environment was reflected in the decrease in demand in the Europe
and Asia/Pacific regions, both for new investments and in the service and replacement business. In local currencies, the three regions recorded the following changes: Europe –9.1%,
the Americas –1.1% and Asia/Pacific –3.5%.
With the exception of Eastern Europe, mostmarkets in Europe declined. Core markets suchas Germany, Italy, France and Switzerland werehardest hit. In the Americas, we recorded aslight decline in net sales in the United States,
while Canada experienced a slightly more
pronounced negative impact. Mexico posted
double-digit growth due to its strong local foodindustry. Asia/Pacific showed a mixed trend.
Japan, Australia and India as well as growthmarkets in Southeast Asia made a positive contribution to the net sales development in theregion. China and South Korea, on the otherhand, recorded declines in net sales.

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Operating profit (EBIT) decreased by 33.5% toCHF 18.1 million (prior-year period: CHF 27.2
million), which is largely attributable to lower
net sales and the underutilization of plant capacities associated with the decline in volumes.
Movement Systems also faced operational
challenges in the USA and at the location inGermany. These topics led to higher operatingcost and impaired delivery capability. A slighteasing of raw material prices and lower energy
prices partly counteracted this. Sales prices
were maintained at the same level as in theprior-year period. The EBIT margin declined to
10.0% (prior-year period: 13.6%).
The focus for the second half of 2024 will be on
introducing new products, strict resource management and resolving operational challenges.
The completion of the start-up of the new production line in China and the construction of
the new coating production line in Japanremain important key projects.

Well positioned
Our activities focus on clearly defined businessareas and market segments in which we are or
aspire to be globally leading. This is achieved
through our clear customer focus, an excellent
service standard, innovation, sustainability,
digital transformation, and a strong global
brand. We will continue to remain committed
to this proven strategy going forward.

Confirmed outlook for 2024
The coming months will continue to provechallenging. Due to the measures initiated inproduction, logistics and sales, as well as theslightly positive trend in business development
compared to the second half of 2023, we confirm the spring outlook for the full year 2024.
You can find further information in the 2024
Half-Year Report published online thismorning:www.forbo.com –> Investors
Forbo is a leading producer of floor coverings,
building and construction adhesives, as well as
belts for power transmission and lightweight
conveyor technology. The sustainable manufacture of environmentally friendly products haslong been an integral part of the strategy.

Forbo’s linoleum floor coverings are madefrom natural raw materials. It is biodegradable
and carbon negative (cradle to gate), withoutoffsetting. For its manufacture of heterogenous
vinyl floor coverings, Forbo uses the latest
generation of phthalate-free plasticizers. As aproportion of total product weight, textile floor
coverings also contain up to 45% recycledmaterials. The BioBelt is a conveyor belt
consisting of at least 20% renewable raw
materials. The AmpMiser conveyor belt allows
savings in energy of up to 50%.
The company employs about 5,200 people andhas an international network of 25 sites withproduction and distribution, 6 fabrication
centers, and 47 sales organizations in a total of39 countries around the world. The company
generated net sales of CHF 1,175.2 million in
the 2023 business year. The company is headquartered in Baar in the canton of Zug,Switzerland.
The company is listed on SIX Swiss Exchange(security number 354151, ISIN CH0003541510,
Bloomberg FORN SW, Reuters FORN.S).
Contact person:
Karin Marti
Head Corporate Communications
Phone +41 58 787 25 41
www.forbo.com
www.forbo.com –> Sustainability

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Financial overview of the Forbo GroupFirst half
2024
CHF m

First half
2023
CHF m

ChangeCorporatecurrency

Local
currencies

Net sales
Flooring Systems

570.3
389.2

615.2
415.9

–7.3%
–6.4%

–3.7%
–2.9%

Movement Systems

181.1

199.3

–9.1%

–5.2%

Operating profit before depreciation
and amortization (EBITDA)

86.8

102.8

–15.6%

15.2%

16.7%

61.8

75.2

EBIT margin

10.8%

12.2%

Group profit

48.4

57.4

First half2024

First half2023

CHF 34.36

CHF 40.54

30.6.2024

31.12.2023

62.3%

61.4%

EBITDA margin
Operating profit (EBIT)

Earnings per share (undiluted)

Equity ratio–17.8%–15.7%–15.2%