Forbo Holding AG · SIX:FORN
Forbo — H1 2023 Earnings Presentation
30 slides from Forbo's earnings presentation, Jul 28, 2023
Slide 1: Presentation Half-Year Results 2023 Media and Financial Analyst Meeting
FORBO GROUP PRESENTATION HALF-YEAR RESULTS 2023 MEDIA AND FINANCIAL ANALYST MEETING FRIDAY, JULY 28, 2023 This E. Schneider Chairman of the Board of Directors Jens Fankhänel Chief Executive Officer Andreas Jaeger Chief Financial Officer 1
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 re
Slide 3: Agenda
AGENDA WELCOME & INTRODUCTORY REMARKS THIS E. SCHNEIDER FINANCIAL RESULTS FIRST HALF-YEAR 2023 ANDREAS JAEGER ACTIVITIES & FOCUS JENS FANKHÄNEL STRATEGY & OUTLOOK 2023 THIS E. SCHNEIDER QUESTIONS & ANSWERS Media and financial analyst meeting 3
Slide 4: Welcome & Introductory Remarks
THIS E. SCHNEIDER WELCOME & INTRODUCTORY REMARKS Media and financial analyst meeting 4
Slide 5: First Half-Year 2023 in a Nutshell
FORBO GROUP FIRST HALF-YEAR 2023 IN A NUTSHELL – Uncertain economic and geopolitical environment impacted demand – Slightly lower net sales in local currencies in comparison to strong H1 2022 – Strong negative currency effects on net sales and EBIT – Sales prices increased to compensate for signific
Slide 6: Financial Results First Half-Year 2023
ANDREAS JAEGER FINANCIAL RESULTS FIRST HALF-YEAR 2023 Media and financial analyst meeting 6
Slide 7: Financial Performance First Half-Year 2023
FORBO GROUP FINANCIAL PERFORMANCE FIRST HALF-YEAR 2023 Lower net sales in comparison to strong H1 2022 Net sales decrease of 2.2% in local currencies due to restrained demand Strong negative currency effects CHF 37 million on net sales; CHF 5 million on EBIT EBIT margin improved 12.2% (H1 2022: 11.8
Slide 8: H1 2023 Financial Overview Income Statement
FORBO GROUP – H1 2023 FINANCIAL OVERVIEWINCOME CONSOLIDATED – INCOME STATEMENT FULL YEAR 2022 STATEMENT CHF MILLION H1 2023 H1 2022 ∆ – Increased sales prices (+6%) covered for Net sales 615.2 667.3 –7.8% significantly higher energy and personnel Gross profit 215.8 233.0 cost –7.4% Gross profit marg
Slide 9: H1 2023 Consolidated Balance Sheet
FORBO GROUP – H1 2023 CONSOLIDATED BALANCE SHEET CHF MILLION 30.6.23 31.12.22 Non-current assets 374.6 388.6 – Solid balance sheet with net cash of CHF –17.6 million (exclusive leasing) Current assets 601.2 571.6 Cash and cash equivalents 45.9 46.7 – Own shares totaling CHF 106.6 million Working cap
Slide 10: H1 2023 Consolidated Cash Flow Statement
FORBO GROUP – H1 2023 CONSOLIDATED CASH FLOW STATEMENT CHF MILLION H1 2023 H1 2022 – Considerably higher cash flow from operating activities due to Cash flow from operating activities 33.0 –10.0 improved working capital Cash flow from investing activities –10.1 –8.1 management – Cash flow from inves
Slide 11: What Was Different in H1 2023?
FORBO GROUP – H1 2023 WHAT WAS DIFFERENT IN H1 2023? H1 2023 VERSUS H1 2022 H1 2023 VERSUS H2 2022 – Weaker demand in inflationary – Challenging market environment, but environment improving versus Q4 2022 – Increased sales prices – Slightly increased sales prices – Significantly higher personnel an
Slide 12: Activities & Focus
JENS FANKHÄNEL ACTIVITIES & FOCUS Media and financial analyst meeting 12
Slide 13: Accomplished Measures to Improve Profitability
FORBO GROUP ACCOMPLISHED MEASURES TO IMPROVE PROFITABILITY – Sales prices increased to absorb inflationary cost increases – Workforce and cost adjusted to lower volumes – Sales and production planning optimized to ensure high product availability/service levels – Inventory management improved and op
Slide 14: Flooring Systems First Half-Year 2023 in a Nutshell
FLOORING SYSTEMS FIRST HALF-YEAR 2023 IN A NUTSHELL – Market environment in the building industry negatively impacted by high inflation and increased interest rates – Reduced demand resulting in negative volume development; improving trend compared to Q4 2022 – Net sales in local currencies declined
Slide 15: Flooring Systems Innovation/Market Activities
FLOORING SYSTEMS INNOVATION/MARKET ACTIVITIES – Global introduction of renewed luxury vinyl tiles Allura collection (designs, formats, versatile installation options) – Digital marketing campaigns with focus on sustainability and new collections – Preparation of new Flotex and vinyl collections for
Slide 16: Movement Systems First Half-Year 2023 in a Nutshell
MOVEMENT SYSTEMS FIRST HALF-YEAR 2023 IN A NUTSHELL – Market environment negatively impacted by delayed customer projects, specifically in the logistics segment, and no significant market recovery in China – Net sales maintained in local currencies (+0.3%) due to sales price increases: - Europe +3.5
Slide 17: Movement Systems Innovation/Market Activities
MOVEMENT SYSTEMS INNOVATION/MARKET ACTIVITIES – New versatile belt types with increased content from recycled PET bottles – Market leading conveyor belts for the food industry and the production of hygiene articles – Increased focus on energy saving belts – New products in the homogenous belt produc
Slide 18: Focus Second Half-Year 2023
FORBO GROUP FOCUS SECOND HALF-YEAR 2023 – Increased sales & marketing activities to support growth in a challenging market environment – Continuous operational efficiency improvements in all areas – Major expansion of Flotex production in the USA, extending our manufacturing footprint (Flooring Syst
Slide 19: Sustainability Remains a Key Focus
FORBO GROUP SUSTAINABILITY REMAINS A KEY FOCUS Highlights from the sustainability reports of our two divisions, as published in May 2023: – Flooring Systems has reduced the CO2 emissions per square meter of floor coverings produced (scope 1 and 2) by 74% between 2004 and 2022, without offsetting – F
Slide 20: Strategy & Outlook 2023
THIS E. SCHNEIDER STRATEGY & OUTLOOK 2023 Media and financial analyst meeting 20
Slide 21: Strategy Confirmed and Strategic Priorities on Track
FORBO GROUP STRATEGY CONFIRMED AND STRATEGIC PRIORITIES ON TRACK – Successful strategy will be pursued – Strategic priorities as presented in early 2023 remain unchanged: – Drive profitable growth through targeted sales and marketing activities – Foster entrepreneurial mindset – Focus on strategy ex
Slide 22: Confirmed Financial Outlook 2023
FORBO GROUP CONFIRMED FINANCIAL OUTLOOK 2023 Despite a continued challenging environment, we confirm the financial outlook for FY 2023 from March 2023: – Slightly higher net sales in local currencies compared with the previous year – Group profit in the magnitude of CHF 130 million, if foreign excha
Slide 23: Additional Information: Our Equity Story
ADDITIONAL INFORMATION OUR EQUITY STORY
Slide 24: Proven Strategy with Commitment to Value Creation
Create global leadership positions in clearly defined market segments based on customer focus, high level of service, innovation, sustainability, PROVEN digital transformation, and a strong global brand STRATEGY Shape markets and drive profitable growth through a strong market orientation WITH COMMI
Slide 25: Resilient Business Models
FOR BO FLOO RI N G SY ST E MS LONG-LASTING INNOVATIVE DIVERSIFIED PREDOMINANTLY CUSTOMER PRODUCT CUSTOMER DIRECT BUSINESS RELATIONSHIPS PORTFOLIO BASE RESILIENT Position our offering with Understand customers’ needs; Large product portfolio Customers in different BUSINESS direct access to decision t
Slide 26: Strong Positions and High Entry Barriers to Our Industries
STRONG POSITIONS AND HIGH UNIQUE HIGH STRONG LARGE PRODUCT & ASSET MARKET INSTALLED APPLICATION BASE BASE ENTRY POSITIONS KNOW-HOW BARRIERS We are the number one choice for our What we do is unique in many aspects – among High share of replacement/renovation Our continued investments over many TO OU
Slide 27: Mastering the Key Factors of Success
FOR BO FLOO RI N G SY ST E MS Ability to perfectly serve Several products with Preferred partner, especially our customers’ needs unique selling in big and complex MASTERING propositions commercial projects THE KEY DEEP MARKET INNOVATIVE RELIABLE FACTORS INSIGHTS AND CUSTOMER INTIMACY PRODUCT PORTFO
Slide 28: ESG – Embedded in Our DNA
FULLY PHTHALATE- USE OF REDUCING CO2-NEUTRAL FREE VINYL RECYCLED OUR CO2 FLOOR FLOOR MATERIAL EMMISSIONS COVERING COVERINGS ESG – Our linoleum is a fully CO2-neutral floor covering We only use phthalate-free plasticizers in all our vinyl floor We are continuously increasing the content of recycled m
Slide 29: Track Record with Strong Financials
TRACK RECORD STRONG VERY WITH ATTRACTIVE MARGINS CASH GENERATION SOLID BALANCE STRONG SHEET FINANCIALS
Slide 30: Attractive Market Prospects
FOR BO FLOO RI N G SY ST E MS GROWING GROWING POPULATION INCREASING ACCEPTANCE AND WEALTH DEMAND FOR OF VALUE- boosting demand SERVICE BASED ATTRACTIVE for construction OFFERS PRICING MARKET SUPPORTING DEMAND GENERATION AND PROFITABLE GROWTH PROSPECTS INCREASING INCREASING LABOR GROWING ACCEPTANCE C