FORBO GROUPPRESENTATION HALF-YEAR RESULTS 2024

MEDIA AND FINANCIAL ANALYST MEETINGFRIDAY, JULY 26, 2024

Jens Fankhänel
Andreas Jaeger

Chief Executive Officer
Chief Financial Officer

DISCLAIMER

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AGENDAWELCOME & INTRODUCTORY REMARKSJENS FANKHÄNEL

FINANCIAL RESULTS FIRST HALF-YEAR 2024

ANDREAS JAEGER

ACTIVITIES, FOCUS & OUTLOOK 2024

JENS FANKHÄNELQUESTIONS & ANSWERSMedia and financial analyst meeting

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JENS FANKHÄNELWELCOME & INTRODUCTORY REMARKSMedia and financial analyst meeting

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FORBO GROUPFIRST HALF-YEAR 2024 IN A NUTSHELL– Challenging market environment as well as continued high cost andinterest rates impacted customers’ investments– Negative currency effects on net sales and EBIT
– Double-digit EBIT margin maintained– Strategic investment projects continued– Equity ratio further improved

Media and financial analyst meeting5

ANDREAS JAEGERFINANCIAL RESULTS FIRST HALF-YEAR 2024

Media and financial analyst meeting

6FORBO GROUPFINANCIAL PERFORMANCE FIRST HALF-YEAR 2024

Lower net sales in comparison to solid H1 2023
Net sales decreased by 3.7% in local currencies due to restrained demand,
mainly in the German, Netherlands and Chinese markets
Negative currency effects
CHF 22 million on net sales; CHF 3 million on EBIT

Double-digit EBIT margin maintained in both divisions
Flooring Systems: 12.4% (H1 2023: 12.6%)
Movement Systems: 10.0% (H1 2023: 13.6%)

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Net sales
Operating profit (EBIT)

389.2
48.1

415.9
52.5

–6.4%
–8.4%

EBIT margin

12.4%

12.6%

62.3

68.9

EBITDA margin

16.0%

16.6%

FTE
Investments

2,833
9.0

2,881
4.1

–1.7%
+119.5%

H1 2024

H1 2023∆

Net sales
Operating profit (EBIT)

181.1
18.1

199.3
27.2

–9.1%
–33.5%EBIT margin

10.0%

13.6%

EBITDA

CHF MILLIONEBITDA

28.7

38.1

EBITDA margin

15.8%

19.1%

FTE
Investments

2,370
5.6

2,438
6.6

–9.6%

–24.7%–2.8%–15.2%MOVEMENT SYSTEMS

H1 2024

CHF MILLIONFLOORING SYSTEMSFORBO GROUP – H1 2024
DIVISIONAL PERFORMANCEMedia and financial analyst meeting

8FORBO GROUP – H1 2024
FINANCIALOVERVIEWINCOME– INCOMESTATEMENT FULL YEAR 2022
CONSOLIDATEDSTATEMENTH1 2024

H1 2023∆Gross profit margin

570.3
199.2

615.2
215.8

34.9%

35.1%

–7.3%
–7.7%

Operating expenses
EBITDA–137.4
86.8–140.6
102.8

15.2%

16.7%

EBIT margin

–25.0
61.8

–27.6
75.2

10.8%

12.2%

Financial result
Group profit before taxes
Income taxes
Group profit

0.762.5
–14.1
48.4

–1.2
74.0
–16.6
57.4

–15.5%–15.1%–15.7%

Earnings per share undiluted in CHF
FTE

34.36
5,244

40.54
5,357

–15.2%–2.1%

CHF MILLION

Net sales
Gross profit

EBITDA margin
Depreciation and amortization
Operating profit (EBIT)–2.3%–15.6%–9.4%–17.8%– Net sales declined by 7.3% with a significant FX impact; in local currencies net
sales declined by 3.7% due to lower
volumes (–3.4%)– Regional net sales development in localcurrencies• Europe –5.4%• Americas +2.2%• Asia/Pacific –4.8%– Gross profit margin almost maintained
despite lower volumes– Operating profit mainly impacted by lower
volumes, lower capacity utilization, FX
impacts and inflation driven salary
increases– Double-digit EBIT margin maintained

Medienundand
Finanzanalystenpräsentation
Media
financial analyst meeting

02.03.2023

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FORBO GROUP – H1 2024
CONSOLIDATED BALANCE SHEET

30.6.24

31.12.23

Non-current assets

392.6

378.2

Current assets
Cash and cash equivalents
Working capital

569.1
40.0
529.1

523.2
69.1
454.1

– Own shares totaling CHF 74.0 million

Total assets

961.7

901.4

– Strong equity ratio

Shareholders‘ equity
Equity ratio

599.0
62.3%

553.7
61.4%

Total liabilities
Current liabilities
Non-current liabilities

362.7
235.4
127.3

347.7
219.3
128.4

Total shareholders‘ equity and liabilities

961.7

901.4

CHF MILLION– Solid, debt-free balance sheet with net
cash of CHF 40.0 million– Seasonal build-up of working capitalMedia and financial analyst meeting

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FORBO GROUP – H1 2024
CONSOLIDATED CASH FLOW STATEMENT

CHF MILLION

Cash flow from operating activities
Cash flow from investing activities
Free cash flow
Cash flow from financing activities

H1 2024

H1 2023

21.6
–14.4

33.0
–10.1

– Cash flow from operating activities
declined, driven by the lower resultand higher inventory to improve
service levels

7.2

22.9

– Investment activities in strategic
projects continued

–37.9

–20.2

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JENS FANKHÄNEL
ACTIVITIES & FOCUS

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FORBO GROUP
MARKET ENVIRONMENT AND INITIATIVES LAUNCHED– Germany, Netherlands and China most impacted bythe market environment– Initiatives launched– efficiency measures and strict resource management– launch of innovative and sustainable products– intensified key account management and segment focus

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FLOORING SYSTEMSFIRST HALF-YEAR 2024 IN A NUTSHELL– Challenging market environment for the building and constructionindustry caused by continued high cost and interest rates– Net sales in local currencies declined by 2.9%
– Europe –4.3%– Americas +5.5%– Asia/Pacific –6.0%– EBIT margin close to first half-year 2023
– negative impacts: lower capacity utilization, higher salary cost driven by inflation
as well as higher energy and freight cost– positive impacts: lower raw material prices, product mix in favor of high-margin
products, and adjusted personnel– Continued investments in operational efficiency, manufacturing
footprint in the USA, and innovation
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FLOORING SYSTEMSATTRACTIVE COLLECTIONS AND MARKETING ACTIVITIES– Global introduction of marmoleum solid linoleum collection –climate positive floor covering– Launch of surestep safety flooring with new surfaces andattractive colors– Roll-out of Flotex colour and advance collection with loose lay
installation options– Introduction of new online color/design selection andsustainability impact assessment tools– Intensification of key account management– Participation at two major exhibitions: salone del mobile in
Milan and architect at work in Munich, as well as over 20 othersmaller local exhibitions and conferences
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MOVEMENT SYSTEMSFIRST HALF-YEAR 2024 IN A NUTSHELL– Reduced customer investments caused by adverse marketenvironment in Europe and Asia/Pacific– Net sales in local currencies declined by 5.2%
– Europe –9.1%– Americas –1.1%– Asia/Pacific –3.5%– Sales price levels maintained– Double-digit EBIT margin sustained– negative impact: lower capacity utilization as well as operational
challenges in the USA and in Germany– positive impact: slightly decreasing raw material prices and adjusted
personnel– Investments in innovation and modernization continued
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MOVEMENT SYSTEMSATTRACTIVE PRODUCTS AND MARKETING ACTIVITIES– Launch of additional “pro snap” modules for Prolink
plastic modular belt series with distinguished benefits
for the food industry– Introduction of Transilon conveyor belts for– hygiene-critical applications in the food industry to process dough,meat, poultry, seafood, fruit, and vegetables– applications in the automotive industry as inspection belts on
car body press lines– high-quality treadmills in commercial gyms

– Participation at food and logistics/airport exhibitions in
all regions

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FORBO GROUP
FOCUS SECOND HALF-YEAR 2024

– Competitive portfolio
Introduction of attractive products and services supported by tailored marketing campaigns– High service levels and cost efficiency
Continue operational excellence initiatives and resolve operational challenges– Proximity to customers
Further strengthening of key account management– Ongoing efforts for sustainable solutions
Increase 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)– finalization of second production line in Pinghu/China (Movement Systems)– modernization of manufacturing site in Fukuroi/Japan (Movement Systems)

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JENS FANKHÄNEL
OUTLOOK 2024

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FORBO GROUPCONFIRMED FINANCIAL OUTLOOK FOR 2024

– Well positioned for the challenging market environment– healthy, debt-free financial base with positive net cash position– proven strategy– leading market positions– We confirm the spring outlook for the full year 2024
based on– the measures initiated in the areas of production, logistics, and sales– the slightly positive trend in business performance in H1 2024
compared to H2 2023

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QUESTIONS & ANSWERSMedia and financial analyst meeting21