Forbo Holding AG · SIX:FORN
Forbo — FY2023 Earnings Presentation
24 slides from Forbo's earnings presentation, Mar 5, 2024
Slide 1: Media and Financial Analyst Meeting – Business Year 2023
FORBO GROUP PRESENTATION BUSINESS YEAR 2023 MEDIA AND FINANCIAL ANALYST MEETING TUESDAY, MARCH 5, 2024 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 2023 ANDREAS JAEGER ACTIVITIES & FOCUS JENS FANKHÄNEL OUTLOOK 2024 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: 2023 in a Nutshell
FORBO GROUP 2023 IN A NUTSHELL – Geopolitical and macroeconomic situation deteriorated since Q3 2023 – Challenging market environment impacted demand – Strong negative currency effects on net sales and EBIT – Solid sales price increases – Strong free cash flow generation – Innovative and sustainable
Slide 6: Financial Performance 2023
FORBO GROUP FINANCIAL PERFORMANCE 2023 Lower net sales due to restrained demand Net sales decrease of 2.9% in local currencies Strong negative currency effects CHF 80 million on net sales; CHF 10 million on EBIT Double-digit EBIT margin 11.1% (2022: 10.3%, including one-time impact) Strong free cash
Slide 7: Financial Results 2023
ANDREAS JAEGER FINANCIAL RESULTS 2023 Media and financial analyst meeting 7
Slide 8: Financial Overview Income Statement
FORBO GROUP FINANCIAL OVERVIEWINCOME CONSOLIDATED – INCOME STATEMENT FULL YEAR 2022 STATEMENT CHF MILLION 2023 2022 ∆ – Due to lower sales volumes (–9%), net Net sales 1,175.2 1,293.2 –9.1% sales declined by 2.9% in local currencies Gross profit 401.7 440.8 – Europe –3.3% –8.9% Gross profit margin 3
Slide 9: Consolidated Balance Sheet
FORBO GROUP CONSOLIDATED BALANCE SHEET CHF MILLION 2023 2022 Non-current assets 378.2 388.6 – Solid balance sheet with net cash of CHF 69.0 million (exclusive leasing) Current assets 523.2 571.6 Cash and cash equivalents 69.1 46.7 – Own shares totaling CHF 81.8 million Working capital 454.1 524.9 –
Slide 10: Consolidated Cash Flow Statement
FORBO GROUP CONSOLIDATED CASH FLOW STATEMENT CHF MILLION 2023 2022 – Significant higher cash flow from operating activities due to Cash flow from operating activities 160.0 80.6 improved inventory management Cash flow from investing activities –44.1 –30.1 – Increased investment activities in strateg
Slide 11: Capital Expenditure
FORBO GROUP CAPITAL EXPENDITURE Wide-ranging investments combining sustainability and efficiency improvements as well as targeted CHF MILLION capacity expansions 45 40 38 36 REPLACEMENT 31 52% 2023 48% RATIONALIZATION & EXTENSION 2019 2020 2021 2022 2023 Media and financial analyst meeting 11
Slide 12: Activities & Focus
JENS FANKHÄNEL ACTIVITIES & FOCUS Media and financial analyst meeting 12
Slide 13: 2023 Market Environment and Measures
FORBO GROUP 2023 MARKET ENVIRONMENT AND MEASURES – Europe severely impacted by the economic downturn – No market recovery in China – Development in USA below expectations – Measures to counteract market development – stringent implementation of efficiency measures and strict resources management – o
Slide 14: Flooring Systems 2023 in a Nutshell
FLOORING SYSTEMS 2023 IN A NUTSHELL – Challenging market environment for the building industry – restrained construction activity caused by inflationary cost increases and high interest rates – shift in renovation projects towards energy saving investments – weak demand in three main countries (Fran
Slide 15: Flooring Systems Attractive Collections
FLOORING SYSTEMS ATTRACTIVE COLLECTIONS – Linoleum – “marmoleum cocoa” launched in May with cocoa bean husks; for the first time with post-consumer recycled content – “marmoleum solid” prepared for launch in January 2024, high-quality collection comprising 4 design families; containing post-consumer
Slide 16: Movement Systems 2023 in a Nutshell
MOVEMENT SYSTEMS 2023 IN A NUTSHELL – Reduced customer spendings in an uncertain economic environment – reduced demand in the logistics segment with over-proportional impact in the USA – no market recovery in China – low market demand in Germany, strong deterioration in Q4 2023 – Net sales in local
Slide 17: Movement Systems New Products and Service Centers
MOVEMENT SYSTEMS NEW PRODUCTS AND SERVICE CENTERS – Three new “fullsan” homogenous belt types for the food industry – “transtex” strong belt mainly for agricultural harvesting processes of fruit and vegetables as well as processing of meat – Two new “transilon” conveyor belts mainly for logistics an
Slide 18: Sustainability
FORBO GROUP SUSTAINABILITY Flooring Systems Movement Systems Electricity used in plants from renewable sources TÜV Rheinland confirmed up to 50% energy savings on AmpMiser belts Climate positive linoleum, cradle to gate Numerous photovoltaic systems installed Reduction of Scope 1 and 2 CO2 emissions
Slide 19: Priorities 2024
FORBO GROUP PRIORITIES 2024 – Competitive portfolio Introduction of attractive products and services supported by tailored marketing campaigns – High service levels Continuous operational excellence initiatives in all areas – Proximity to customers Intensified key account activities and increased sa
Slide 20: Outlook 2024
THIS E. SCHNEIDER OUTLOOK 2024 Media and financial analyst meeting 20
Slide 21: Solid Foundation
FORBO GROUP SOLID FOUNDATION – Well positioned to face the current challenging market environment – healthy financial base with positive net cash position – proven strategy – leading market positions – Ensure continued competitiveness and create the necessary basis to benefit from growing demand – t
Slide 22: Financial Outlook FY 2024
FORBO GROUP FINANCIAL OUTLOOK FY 2024 Currently there is no sign of a market recovery in the short term. This will continue to challenge us in all areas of the organization. Provided the geopolitical and economic environment does not change significantly, we expect – net sales and Group profit to gr
Slide 23: Proposals to the Ordinary General Meeting
FORBO GROUP PROPOSALS TO THE ORDINARY GENERAL MEETING – Dr. Peter Altorfer will not be standing for re-election at the 2024 Ordinary General Meeting – The Board of Directors will propose two new Board members for election – Jörg Kampmeyer Experienced executive with expert knowledge in the global con
Slide 24: Questions & Answers
QUESTIONS & ANSWERS Media and financial analyst meeting 24