Forbo Holding AG · SIX:FORN
Forbo — H1 2024 Earnings Presentation
21 slides from Forbo's earnings presentation, Jul 26, 2024
Slide 1: Presentation Half-Year Results 2024 – Media and Financial Analyst Meeting
FORBO GROUP PRESENTATION HALF-YEAR RESULTS 2024 MEDIA AND FINANCIAL ANALYST MEETING FRIDAY, JULY 26, 2024 Jens Fankhänel Chief Executive Officer Andreas Jaeger Chief Financial Officer
Slide 2: Disclaimer
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 rep
Slide 3: Agenda
AGENDA WELCOME & INTRODUCTORY REMARKS JENS FANKHÄNEL FINANCIAL RESULTS FIRST HALF-YEAR 2024 ANDREAS JAEGER ACTIVITIES, FOCUS & OUTLOOK 2024 JENS FANKHÄNEL QUESTIONS & ANSWERS Media and financial analyst meeting 3
Slide 4: Welcome & Introductory Remarks
JENS FANKHÄNEL WELCOME & INTRODUCTORY REMARKS Media and financial analyst meeting 4
Slide 5: First Half-Year 2024 in a Nutshell
FORBO GROUP FIRST HALF-YEAR 2024 IN A NUTSHELL – Challenging market environment as well as continued high cost and interest rates impacted customers’ investments – Negative currency effects on net sales and EBIT – Double-digit EBIT margin maintained – Strategic investment projects continued – Equity
Slide 6: Financial Results First Half-Year 2024
ANDREAS JAEGER FINANCIAL RESULTS FIRST HALF-YEAR 2024 Media and financial analyst meeting 6
Slide 7: Financial Performance First Half-Year 2024
FORBO GROUP FINANCIAL 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 o
Slide 8: Divisional Performance
FORBO GROUP – H1 2024 DIVISIONAL PERFORMANCE H1 2024 H1 2023 ∆ FLOORING SYSTEMS CHF MILLION Net sales 389.2 415.9 –6.4% Operating profit (EBIT) 48.1 52.5 –8.4% EBIT margin 12.4% 12.6% EBITDA 62.3 68.9 –9.6% EBITDA margin 16.0% 16.6% FTE 2,833 2,881 –1.7% Investments 9.0 4.1 +119.5% MOVEMENT SYSTEMS
Slide 9: Financial Overview Income Statement H1 2024
FORBO GROUP – H1 2024 FINANCIAL OVERVIEWINCOME CONSOLIDATED – INCOME STATEMENT FULL YEAR 2022 STATEMENT CHF MILLION H1 2024 H1 2023 ∆ – Net sales declined by 7.3% with a signifi- Net sales cant FX impact; in local currencies net 570.3 615.2 –7.3% sales declined by 3.7% due to lower Gross profit 199.
Slide 10: Consolidated Balance Sheet
FORBO GROUP – H1 2024 CONSOLIDATED BALANCE SHEET CHF MILLION 30.6.24 31.12.23 Non-current assets 392.6 378.2 – Solid, debt-free balance sheet with net cash of CHF 40.0 million Current assets 569.1 523.2 Cash and cash equivalents 40.0 69.1 – Own shares totaling CHF 74.0 million Working capital 529.1
Slide 11: Consolidated Cash Flow Statement
FORBO GROUP – H1 2024 CONSOLIDATED CASH FLOW STATEMENT CHF MILLION H1 2024 H1 2023 – Cash flow from operating activities declined, driven by the lower result Cash flow from operating activities 21.6 33.0 and higher inventory to improve Cash flow from investing activities –14.4 –10.1 service levels –
Slide 12: Activities & Focus
JENS FANKHÄNEL ACTIVITIES & FOCUS Media and financial analyst meeting 12
Slide 13: Market Environment and Initiatives Launched
FORBO GROUP MARKET ENVIRONMENT AND INITIATIVES LAUNCHED – Germany, Netherlands and China most impacted by the market environment – Initiatives launched – efficiency measures and strict resource management – launch of innovative and sustainable products – intensified key account management and segmen
Slide 14: Flooring Systems First Half-Year 2024 in a Nutshell
FLOORING SYSTEMS FIRST HALF-YEAR 2024 IN A NUTSHELL – Challenging market environment for the building and construction industry 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 t
Slide 15: Flooring Systems Attractive Collections and Marketing Activities
FLOORING SYSTEMS ATTRACTIVE COLLECTIONS AND MARKETING ACTIVITIES – Global introduction of marmoleum solid linoleum collection – climate positive floor covering – Launch of surestep safety flooring with new surfaces and attractive colors – Roll-out of Flotex colour and advance collection with loose l
Slide 16: Movement Systems First Half-Year 2024 in a Nutshell
MOVEMENT SYSTEMS FIRST HALF-YEAR 2024 IN A NUTSHELL – Reduced customer investments caused by adverse market environment 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
Slide 17: Movement Systems Attractive Products and Marketing Activities
MOVEMENT SYSTEMS ATTRACTIVE 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 pro
Slide 18: Focus Second Half-Year 2024
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
Slide 19: Outlook 2024
JENS FANKHÄNEL OUTLOOK 2024 Media and financial analyst meeting 19
Slide 20: Confirmed Financial Outlook for 2024
FORBO GROUP CONFIRMED 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 in
Slide 21: Questions & Answers
QUESTIONS & ANSWERS Media and financial analyst meeting 21