Solid result in difficult market environment

Forbo Holding AG / Key word(s): Half Year Results Solid result in difficult market environment 28-Jul-2023 / 06:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. MEDIA RELEASE AD HOC ANNOUNCEMENT PURSUANT TO ARTICLE 53 OF THE SIX EXCHANGE REGULATION LISTING RULES

Net sales in local currencies slightly below strong prior-year period – Negative currency impact on net sales and earnings – Measures to increase earnings prove effective – EBIT margin increased – Confirmation of guidance from spring 2023

The Forbo Group – a leading manufacturer of floor coverings, building and construction adhesives, as well as power transmission and conveyor belt solutions – reported net sales of CHF 615.2 million in the first half of 2023 (prior-year period: CHF 667.3 million), representing a decrease of 2.2% in local currencies (7.8% in the corporate currency). Operating profit (EBIT) declined by 4.3% to CHF 75.2 million (prior-year period: CHF 78.6 million). The EBIT margin rose to 12.2% (prior-year period: 11.8%). Group profit saw a decline of 4.8% to CHF 57.4 million (previous year: CHF 60.3 million). Cash flow from operating activities improved significantly and came to CHF 33.0 million (prior-year period: CHF –10.0 million).

Baar, July 28, 2023

As expected, the first half of 2023 was affected by geopolitical and macroeconomic challenges that also had an impact on Forbo’s businesses. Compared with the strong performance in the first half of 2022, there was a significant slump in demand and an associated decline in volumes. In addition, strong negative currency effects and significant rises in personnel and energy cost had to be offset. Forbo focused on realizing measures previously announced to improve profitability and implementing operational and strategic projects. Forbo aligned its operating structures to the lower volumes, reduced inventories, and applied the necessary sales price increases. This resulted in an increase in cash inflow. The first half of 2023 showed some improvements over the final months of 2022, especially in terms of volume and margin development.