CONNECT.
HALF-YEAR REPORT 2024

NET SALES AND VOLUME GROWTH IMPACTEDBY DIFFICULT MARKET ENVIRONMENTCONTINUED NEGATIVE CURRENCY EFFECTS
ON NET SALES AND EARNINGSDOUBLE-DIGIT EBIT MARGINS MAINTAINEDEQUITY RATIO FURTHER IMPROVED

2

FORBO HALF-YEAR REPORT 2024

The Forbo Group – a leading manufacturer of floor coverings, building and construction adhesives, as well as belts for power transmission and conveyor belt­solutions – 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% to
CHF 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).

Dear Shareholders,
Forbo looks back on a challenging first half of 2024. Market momentum slowed, resulting in a decline in demandand 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 our funds and resources to targeted use in an entrepreneurial way and implemented operational
excellence initiatives in a focused manner. Investments in product developments, production technology, and­strategic projects were continued in a systematic way.
Slight decline in net sales in local currencies
With net sales of CHF 570.3 million in the first half of 2024 (prior-year period: CHF 615.2 million), Forbo registereda decrease in local currencies of 3.7% (– 7.3% in the corporate currency). 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
demand and 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 came to CHF 22 million in net sales and CHF 3 million in EBIT. Both divisions were a­ ffected
to a similar degree. Currency effects mainly came from the conversion of the euro, the US dollar and the­Japanese yen.
Operating result impacted by a 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%(prior-year period: 16.7%). Operating profit (EBIT) declined by 17.8% to CHF 61.8 million (prior-year 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 resultcompared with the first half of 2023. This was only partially offset by cost savings and optimized processes.
Despite intense competition, sales prices more or less remained stable in comparison with the prior-year period(– 0.3%).

FORBO HALF-YEAR REPORT 2024

3Group profit
On the basis of the lower operating profit, a higher 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% to CHF 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 toan increase of 8.2%. The equity ratio was 62.3% (year-end 2023: 61.4%).
Solid balance sheet
As at the end of June 2024, Forbo was debt-free and had net cash amounting to CHF 40.0 million (year-end 2023:
CHF 69.0 million). This decline was mainly due to the dividend payout and the seasonal increase in net working
capital. In addition, Forbo holds treasury shares worth CHF 74.0 million, based on the share price at end-June 2024.
Cash flow from operating activities came to CHF 21.6 million (prior-year period: CHF 33.0 million). On the one
hand, this development is attributable to the lower Group profit and, on the other hand, we deliberately built
up inventories in the first half-year 2024 in order to ensure delivery capability in the summer months.
Performance of the divisions and focus for the second half of 2024
The Forbo Flooring Systems division reported net sales of CHF 389.2 million in the first half of 2024 (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 cost and­interest rates was clearly discernible in both new builds and renovations. The three regions reported the f­ ollowing
net sales development in local currencies: Europe – 4.3%, the Americas + 5.5% and Asia/Pacific – 6.0%.
In Europe, the core markets of Germany and the Netherlands recorded the largest declines. The United Kingdom
enjoyed slight growth while Switzerland, Italy, Spain, and smaller markets in Eastern Europe were able to maintainor slightly increase their net sales levels. All other markets experienced declines to varying degrees. In the­Americas, we recorded a significant increase in net sales in the United States, particularly as a result of growing
local demand in the education and healthcare segments. In Asia/Pacific, net sales in China, Australia, and South
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 healthy growth, particularly with regard to the climate-positive 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% to CHF 48.1 million (prior-year period: CHF 52.5 million). The negative
volume growth and corresponding decline in the capacity utilization of production plants, the higher personnel
cost due to inflation, higher energy and freight cost, and negative currency effects had a significant impact on
the operating result. This was partially mitigated by a slight easing of raw material prices, an increased share ofsales of high-margin products and a strict cost management. Sales prices were slightly lower than in the prior-year
period. Despite these developments, the EBIT margin at 12.4% was almost on par with the prior-year period(12.6%).
In addition to increasing volumes and improving profitability, the focus for the second half of 2024 will be on
the introduction of further innovative collections. A high level of product availability, reliable delivery quality andproximity to customers will remain key success factors.

4

FORBO HALF-YEAR REPORT 2024

The Forbo Movement Systems division reported net sales of CHF 181.1 million in the first half of 2024 (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, thethree regions recorded the following changes: Europe – 9.1%, the Americas – 1.1% and Asia/Pacific – 3.5%.
With the exception of Eastern Europe, most markets in Europe declined. Core markets such as Germany, Italy,
France and Switzerland were hardest hit. In the Americas, we recorded a slight decline in net sales in the UnitedStates, while Canada experienced a slightly more pronounced negative impact. Mexico posted double-digit
growth due to its strong local food industry. Asia/Pacific showed a mixed trend. Japan, Australia and India as wellas growth markets in Southeast Asia made a positive contribution to the net sales development in the region.
China and South Korea, on the other hand, recorded declines in net sales.
Operating profit (EBIT) decreased by 33.5% to CHF 18.1 million (prior-year period: CHF 27.2 million), which islargely attributable to lower net sales and the underutilization of plant capacities associated with the decline involumes. Movement Systems also faced operational challenges in the USA and at the location in Germany. These
topics led to higher operating cost and impaired delivery capability. A slight easing of raw material prices andlower ­energy prices partly counteracted this. Sales prices were maintained at the same level as in the prior-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 andresolving operational challenges. The completion of the start-up of the new production line in China and theconstruction of the new coating production line in Japan remain important key projects.
Well positioned
Our activities focus on clearly defined business areas and market segments in which we are or aspire to be
globally leading. This is achieved through our clear customer focus, an excellent service standard, innovation,
sustainability, digital transformation, and a strong global brand. We will continue to remain committed to thisproven strategy going forward.
Confirmed outlook for 2024
The coming months will continue to prove challenging. Due to the measures initiated in production, logistics
and sales, as well as the slightly positive trend in business development compared to the second half of 2023,
we confirm the spring outlook for the full year 2024.

This E. Schneider
ChairmanForbo Holding Ltd
Baar, July 26, 2024

Jens Fankhänel
CEOFORBO HALF-YEAR REPORT 2024

5

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

June 30, 2024

December 31, 2023

40.0
237.9
291.2
569.1
359.3
31.0
2.3
392.6
961.7

69.1
189.9
264.2
523.2
345.6
30.7
1.9
378.2
901.4

Shareholders’ equity and liabilities
Current financial liabilities
Trade payables
Current provisions, accrued expenses, current tax,
and other liabilities

15.9
74.6
144.9

13.2
86.9
119.2

Current liabilities
Non-current financial liabilities
Employee benefit obligations, non-current provisions, and deferred tax liabilities
Non-current liabilities
Total liabilities
Shareholders’ equity
Total shareholders’ equity and liabilities

235.4
27.4
99.9
127.3
362.7
599.0
961.7

219.3
26.9
101.5
128.4
347.7
553.7
901.4

First half 2024
570.3
– 371.1
199.2– 137.4
61.8
0.7
62.5
– 14.1
48.4
48.4

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

34.36
34.36

40.54
40.54

Condensed consolidated income statement
Unaudited, CHF m
Net sales
Cost of goods sold
Gross profit
Operating expenses
Operating profit
Financial result
Group profit before taxes
Income taxes
Group profit
Group profit attributable to shareholders of Forbo Holding Ltd
Earnings per share
Basic earnings per share in CHF
Diluted earnings per share in CHF

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

6

FORBO HALF-YEAR REPORT 2024

Consolidated comprehensive
income statement and statementof changes in equity
Consolidated comprehensive income statement
Unaudited, CHF m
Group profit
Items that will not be reclassified to the income statement:
Remeasurements of employee benefit obligations, net of taxes
Items that were or may be subsequently reclassified to the income statement:
Translation differences
Other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to the shareholders of Forbo Holding Ltd

First half 2024
48.4First half 2023
57.4

1.7

– 3.5

21.7
23.4
71.8
71.8

– 12.9– 16.441.0
41.0

Consolidated statement of changes in equity
first half 2024
Unaudited, CHF m
January 1, 2024
Group profit
Other comprehensive income, net of tax
Total comprehensive income
Share-based payments
Treasury shares
Dividend payment
June 30, 2024

Share capital

Treasuryshares0.1– 0.0

Reserves

0.1

– 0.0

998.2
48.4
1.7
50.1
2.2
6.5
– 35.2
1,021.8

Share capital

TreasurysharesReserves

0.1

– 0.0

Translationdifferences– 444.6
21.7
21.7– 422.9

Translationdifferences

Total

553.7
48.4
23.4
71.8
2.2
6.5
– 35.2599.0

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

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

0.1

– 0.0

947.3
57.4
– 3.5
53.9
2.3
– 15.5– 32.6955.4– 397.3– 12.9– 12.9– 410.2

Total

550.1
57.4
– 16.441.0
2.3– 15.5– 32.6545.3

FORBO HALF-YEAR REPORT 2024

7

Consolidated cash flow statement

Condensed consolidated cash flow statement
Unaudited, CHF m
Group profit
Depreciation of property, plant, and equipment, and amortization of intangible assets
Increase in net operating working capital
Other adjustments for non-cash items
Net cash flow from operating activities
Purchase of property, plant, and equipment, and intangible assets
Other cash flows from investing activities
Net cash flow from investing activities
Payment of lease liabilities
Increase in current financial debt
Sale/purchase (–) of treasury shares
Dividend payment
Net cash flow from financing activities
Decrease (–)/Increase 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 2024
48.4
25.0
– 68.7
16.9
21.6– 15.1
0.7– 14.4
– 9.2
0.0
6.5
– 35.2– 37.9– 30.7
1.6
69.1
40.0

First half 2023
57.4
27.6
– 61.09.0
33.0– 10.7
0.6– 10.1– 9.5
38.5– 16.6– 32.6– 20.2
2.7
– 3.5
46.7
45.9

8

FORBO HALF-YEAR REPORT 2024

Notes to the condensed consolidated ­half-year financial statements (unaudited)
01 General information

03 Segment information

This condensed consolidated interim report of Forbo
Holding Ltd and its subsidiaries (hereinafter ‘theGroup’) covers the six-month period from January 1,
2024, to June 30, 2024 (hereinafter ‘reporting period’),
and was drawn up in accordance with International
Accounting Standard 34 (IAS 34) ‘Interim Financial­Reporting’. The consolidated half-year financial statements do not include all information reported in the
consolidated full-year financial statements and should
therefore be read in conjunction with the consolidated financial statements as at December 31, 2023.

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.

The consolidated half-year financial statements havenot been audited by the auditors. They were approvedfor publication by the Board of Directors on July 25,
2024.

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 2023 Annual Report with the following
exceptions:
Multiple minor amendments to the relevant standards
and interpretations of the International AccountingStandards Board (IASB) were applied by the Group in
the business year that began on January 1, 2024. The
first-time adoption of these revised standards and­interpretations had no material impact on the consolidated interim report presented here. Standards, interpretations or amendments that have been published
but are not yet mandatory have not been adopted
early.
The preparation of the consolidated half-year financial
statements requires management to use estimatesand assumptions that may affect reported revenues,­expenses, assets, liabilities, and contingent liabilities atthe date of the financial statements. If the estimates andassumptions used by management to the best of its
knowledge at the date of the financial statements­happen to differ from subsequent actual facts, the­original estimates and assumptions will be adjusted in
the reporting period in which the facts have changed.
The consolidated half-year financial statements do notcontain any significant new discretionary decisions andestimates used by management compared with theconsolidated financial statements as at December 31,
2023.
Income tax expenditure is predicted on the basis of
average actual tax rates during the current businessyear.

In the Flooring Systems division, the Group develops,
produces, and sells linoleum, vinyl floor coverings,­entrance flooring systems, carpet tiles, needle felt floor
coverings, Flotex – the washable textile flooring –­building and construction adhesives, as well as various
accessory products required 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 thecosts of the Group headquarters and certain items ofincome and expenses that are not directly attributable
to a specific segment.
The Flooring Systems and Movement Systems divisions
are reportable segments. The identification of reportable segments is based on internal management­reporting to the Chairman of the Board of Directors andto the Chief Executive Officer of the Group, and henceon the financial information used to review the per­formance of the operational units in order to reach adecision on the allocation of resources.
Internal management reporting is based on the sameaccounting principles as external reporting.
The Chairman of the Board of Directors and theChief Executive Officer assess the performance of thesegments based on their operating result (EBIT). The
financial result is not allocated to the segments since
Corporate Treasury exercises central control over it.
Sales between the divisions are conducted at arm’s
length. The divisions observe the same accounting
principles as the Group. Sales to third parties, as­­reported to the Chairman of the Board of Directors
and the Chief Executive Officer, are identical to those­reported in the income statement.

FORBO HALF-YEAR REPORT 2024

9First half 2024

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

Flooring
Systems
389.2
389.2
48.1
62.3
528.5
9.0
2,833

Movement
Systems
181.2
– 0.1
181.1
18.1
28.7
338.4
5.6
2,370

Corporate/
Elimination
– 0.1
0.1

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

Corporate/
Elimination
– 0.0
0.0

– 4.4
– 4.2
23.9
0.5
41

Total
570.3
570.3
61.8
86.8
890.8
15.1
5,244

1) Operating profit before depreciation and amortization
2) Purchase of property, plant, and equipment, and intangible assets (excluding leasing)First half 2023

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

Flooring
Systems
415.9
415.9
52.5
68.9
528.1
4.1
2,881

– 4.5
– 4.2
28.9
0.0
38

Total
615.2
615.2
75.2
102.8
897.8
10.7
5,357

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

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

First half 2024
61.8
0.7
62.5

First half 2023
75.2
– 1.2
74.0

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

June 30, 2024
890.8
70.9
961.7

December 31, 2023
801.5
99.9
901.4

10

FORBO HALF-YEAR REPORT 2024

Operating assets include ‘Trade and other receivables
and accrued income’, ‘Inventories’, ‘Property, plant,
and equipment, intangible assets, and goodwill’, and‘Non-current financial assets’. Non-operating assets­include ‘Cash and cash equivalents’ and ‘Deferred tax
assets’.

The following table shows net sales broken down bygeographic region and by the two divisions that are
identical with the reportable segments.

Net sales per segment by region

Unaudited, CHF m
Regions
EuropeAmericasAsia/Pacific and Africa
Total net sales to third parties

First half 2024

Flooring Systems
First half 2023

289.9
67.6
31.7
389.2

313.5
66.0
36.4
415.9

04 Balance sheet
The change in cash and cash equivalents can be foundin the consolidated cash flow statement.
Trade and other receivables and accrued income
showed an increase compared with year-end 2023.
Trade receivables increased as a result of seasonallyhigher net sales.
Inventories increased for seasonal reasons, but werealso consciously built up in order to ensure delivery
capability.
Property, plant, and equipment increased from
CHF 266.6 million to CHF 275.2 million in the first halfof 2024 (of which CHF 45.4 million for leased property,
plant, and equipment). Investments in property, plant,
and equipment of CHF 23.5 million (of which CHF
8.7 million for leased property, plant, and equipment)
and positive currency effects were partly offset by depreciation of CHF 24.4 million (of which CHF 8.5 million
for leased property, plant, and equipment). Following
the deduction of amortization of CHF 0.6 million­(prior-year period: CHF 2.2 million), intangible assets
and goodwill increased to CHF 84.1 million (end of­previous year: CHF 79.0 million) mainly due to positive
currency effects.
Current and non-current financial liabilities almost­exclusively comprise lease liabilities.

Movement Systems
First half 2024
First half 2023
75.3
62.6
43.2
181.1

85.6
64.5
49.2
199.3

Trade payables reduced by CHF 12.3 million. Thischange was primarily timing related. The other itemsin the remaining current liabilities rose by CHF
28.4 million. This increase is largely attributable to higher accrued expenses and additional tax provisions.
Employee benefit obligations, non-current provisions,and deferred tax liabilities fell by CHF 1.6 million. A largepart of the change concerned the revaluation of the
net liability from defined benefit pension plans. The
revaluation was recognized in other comprehensive
income.
Equity increased by CHF 45.3 million to CHF 599.0 million
compared with December 31, 2023. Due to this­increase, the equity ratio rose from 61.4% on December 31, 2023, to 62.3% on June 30, 2024. The increase inshareholders’ equity by the amount of total comprehensive income of CHF 71.8 million and the decrease intreasury shares of CHF 6.5 million were offset mainly by
the dividend payout of CHF 35.2 million.

FORBO HALF-YEAR REPORT 2024

05 Income statement

06 Cash flow statement

Net sales decreased by 7.3% to CHF 570.3 million in thecorporate currency. In local currencies, the decline
came to 3.7%, which was mainly attributable to lower
sales volumes. The Europe and Asia/Pacific/Africa­regions recorded decreases in net sales, while net salesin Americas increased slightly.

Cash flow from operating activities came to CHF
21.6 million, which was down on the same period of
the previous year. The decrease in net cash flow fromoperating activities is attributable to the lower operating profit and a greater change in net working capital.

The manufacturing costs of the products sold reduced
as a result of the lower sales volume and slightly lower
prices for materials. Operating expenses remained­stable compared with the prior-year period.
Operating profit (EBIT) in the reporting period came to
CHF 61.8 million, which was CHF 13.4 million or 17.8%
lower than in the prior-year period.
The increase of the financial result in the current year is
attributable to currency gains and interest earnings oncurrent financial assets.
Income tax amounted to CHF 14.1 million, corresponding
to a tax rate of 22.5% (prior-year period: 22.4%).
The resulting Group profit came to CHF 48.4 million andwas thus CHF 9.0 million lower than in the same periodof the previous year.
Undiluted earnings per share on the basis of the­average number of shares in circulation amounted to
CHF 34.36 in the reporting period (prior-year period:
CHF 40.54). Diluted earnings per share also came to
CHF 34.36 (prior-year period: CHF 40.54).

As in the same period of the previous year, cash flowfrom investing activities reflects the cash outflow forinvestments in property, plant, and equipment and inintangible assets. The increase is attributable to theongoing strategic investment projects. However, thecash flows are always also dependent on the payment
processes of the projects and therefore differ during
the course of the year. In the reporting year, in addition
to the cash outflow of CHF 35.2 million for the dividendand payments of CHF 9.2 million for lease liabilities,
cash flow from financing activities also included inflows from the sale of treasury shares of CHF 6.5 million.

11

12

FORBO HALF-YEAR REPORT 2024

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

EUR
USD
GBP
JPY
CNY
SEK

1
1
1
100
100
100

2024
0.96130.88891.12450.5847
12.46438.39742023
0.98560.9116
1.1246
0.675913.15838.6950

Balance sheet
On balance-sheet dateJune 30, 2024
0.9616
0.89931.13580.5586
12.60818.3783

December 31, 2023
0.93350.8433
1.07490.596111.96118.401108 Events after the balance sheet date
Between the balance sheet date and the date of­publication of this half-year report, no events occurredthat could have a significant effect on the 2024
­half-year financial statements.

CalendarMedia and financial analysts’ conference for the 2024 business year:	
Ordinary General Meeting 2025:		Media and financial analysts’ conference for the first half of 2025:			

Tuesday, March 4, 2025
Friday, April 4, 2025
Tuesday, July 29, 2025

Our half-year report is published in German and in English translation. The German version is authoritative.

Forbo Holding Ltd
Lindenstrasse 8
CH-6340 Baar

Forbo Management SA
Lindenstrasse 8
CH-6340 Baar

P + 41 58 787 25 25

info@forbo.com
www.forbo.com