forbo flooring

About Forbo

Forbo is a global company, which employs some 5,800 people worldwide.
Forbo has leading market positions with its attractive product portfolio
and brand names of global reputation.

Forbo strives to expand and further its existing product range and
encourage innovation. The Forbo Group attaches great importance to quality
assurance, quality enhancement and environmental compatibility.

Our history

Set up of Continentale Linoleum Union, a loose grouping of European
linoleum manufacturers in Germany (DLW), The Netherlands (Krommenie),
Sweden (Forshaga), Switzerland (Giubiasco) and France (Sarlino).

1928-1960

The production of inlaid linoleum began in 1895, using a type of screen-
printing process in which collared granules of linoleum “mix” were applied
directly onto the backing canvas. (Production ends 1965).

1933-1939

As a result of political influences during the war years DLW drops out.

1950-1960

Women laying pre-cut linoleum shapes onto patterned canvas.

1960-1968

The Group expands into the manufacturing of substitute products, carpets
and PVC flooring.

Set up of new central management.

Renaming of Continental Linoleum Union to Forbo.

1980-1988

By strengthening its core competences and by acquiring further companies,
Forbo evolves into an international group that operates on all fiive
continents of the world. Forbo’s product-line organization is
decentralized, the know-how acquired throughout the years in transferred to
other activities, enlarged and developed.

The company implements a new corporate strategy by concentration on the
four core strategic business units (SBUs) Linoleum, Cushion Vinyl, Belting
and Ad

dhesives. The industry activities Extruded Profiles, Decorative Films
and Coated Textiles are divested during 2000. With these divestments Forbo
is enhancing its focus on core activities.

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Mission Statement

Forbo will focus more intensely than before on its core businesses
which offer strong and

sustained potential for earnings growth, sales growth, market leadership
and synergies. All

Strategic Business Units must secure leading positions either worldwide or
in their most

important markets. High-quality and innovative products are the basis for
satisfied customers.

The sectors that we have designated as strategic business units are
Linoleum and Cushion

Vinyl in the Flooring Division, Belting (conveyor and drive belts made from
synthetic materials)

and Adhesives in the Industry Specialties Division.

The Forbo organization is product driven. The business units,
responsible for a specific core product, carry responsibility for the
business success. In particular, the units haave to ensure profitable
growth.

Our mission is to achieve a sustained increase in enterprise value.
Each and every operational unit must satisfy this requirement. The best
guarantee for the success is a combination of strong earnings power and
growth. Our business strategy is closely and consistently geared to the
creation of value.
[pic]

Werner Kummer

Chief Executive Officer

Environmental
Caring for the environment is a must. Our quality of life and – even more
important – the viability of future generations will essentially depend on
it. The responsible interaction with our environment is in fa

act gaining in
importance. This is a task that future oriented companies cannot afford to
neglect. Responsible operation in consideration of the environment’s needs
is a substantial precondition of sustainable entrepreneurial success. This
has been Forbo’s credo since the company’s foundation in 1928: Producing
environmentally compatible products with appropriate methods of production,
and as economically as possible.

Forbo Flooring products

Strategic Business Units Linoleum and Cushion Vinyl make up Forbo´s
Flooring division. Carpet and Parquet Flooring complete the division’s
portfolio.

Carpets

The market for textile flooring still continues to contract. Since the
business unit carpets managed to stay clear of unprofitable sales, the
overall sales in 2000 did not exceed CHF 213 million.

The production of tufted floor coverings was moved to the French plant
in Reims, and the production facility in Wermelskirchen (Germany) was
closed down. All Swiss-based textile floor covering operations had been
concentrated in Ennenda (Switzerland). In the business year 2000 a
restructuring of the company’s European carpet operations was carried out.
To achieve this objective, the Carpets Business Unit was reorganized.

In the business year 2000 a restructuring of the company’s European
carpet operations was carried out. To achieve this objective, the Carpets
Business Unit was reorganized. The restructuring measures were completed by
the closure of the production plant in Wermelskrichen (Germany).

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Cushion Vinyl

The year 2000 was characterized by difficult market conditions. The
problem of excess capacities was fu

urther aggravated. Despite these
conditions, Forbo succeeded in maintaining its position in the major
European markets. Thanks to its extraordinary design and excellent benefits
the inlay chips technology of Forbo Novilon® gained further headway in
terms of market popularity. In 2000, sales grew by 2% to CHF 346 million.
Business in the European core markets remained under pressure. The export
business to Eastern Europe and overseas brought some compensation.

At Forbo Novilon produktiebedrijven bv in Coevorden (Netherlands) the
first phase of a new production line had been finished in 1999. In the
current business year the second phase of the new plant will be completed
and put into operation. This will give Forbo the necessary edge in
production technology to manufacture innovative cushion vinyl.

Forbo Sarlino SA in Reims (France) expanded its market position in
vinyl floor coverings offering strong sound insulation characteristics.

Linoleum

With a market share of more than 60%, Forbo is the world’s leading
supplier of Linoleum, one of the Group’s core products. In 2000, sales
amounted to CHF 411 million, an increase of 2% compared to the year before.
Substantial marketing efforts were one major factor in achieving this
result. In America and Asia linoleum demand was up 27%. The new Artoleum® 2
design collection launched in 1999 was met with great acceptance in the
market. Forbo’s collections attracted great attention at Europe’s leading
trade fairs, Domotex in Ha

anover and Bâtimat in Paris.

Forbo also performed especially strong in North America, where Linoleum,
although commanding a relatively small share of the market, continues to
achieve greater acceptance. The Forbo range is excellently positioned in
this market: In September 2000, the US journal “Floor Focus” put linoleum
from Forbo in first place in the design category for the second time in a
row. In early January it was ranked number one by the US “Design Journal”,
and Artoleum® received the highly prestigious 1999 “Platinum Award for
Design Excellence” in the flooring category. In the USA Forbo has a highly
effective sales and marketing team. The two existing training centers for
flooring techniques were strengthened by a third one that opened last year.

To mark its 100th anniversary in 1999, the Dutch Forbo Krommenie B.V.

organized an exhibition of Linoleum art prints in the Cobra Museum in

Amstelveen, Netherlands. The exhibition, entitled “From Kandinsky to

Corneille”, was highly acclaimed by public and art critics.

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Parquet Flooring

The Group’s sole remaining parquet-flooring factory, located in Sweden,
successfully boosted its sales to CHF 39.1 million, due to the
extraordinarily high-quality design of the ready-to-lay parquet flooring
produced there. In the Group’s new management structure this local parquet
business will be assigned to the Linoleum Strategic Business Unit. Its main
function is to strengthen the Group’s market position in Scandinavia.

Adhesives

The adhesives segment achieved sales of CHF 207 million in 2000 – a
stagnation compared to the previous year. The main reason for this
stagnation is the market development in Germany and Switzerland. However,
business started to pick up again in the fourth quarter. Sales of Forbo hot-
melt adhesives for industrial applications recorded above average growth.

Forbo made very good progress in the flooring segment, mainly thanks to
its systematic customer training in floor laying techniques and its new,
environmentally friendly product range. An innovative welding rod range was
launched for the Artoleum® product line. At Eurocol B.V. in Wormerveer
(Nethelands), the new development and training canter came on stream. In
1999, Forbo set up a distribution company to expand the Group’s presence in
Poland. The German distribution company Forbo Uli-Chemie GmbH was
integrated into Forbo Erfurt GmbH at the end of 1999.

Belting

Belting comprises conveyor and processing belts, drive and machine
belts and is produced by the Siegling group. Last year under review sales
generated by belting products increased by dynamic 14% to CHF 348 million.
Record sales were reached in Asia (+30%) and in the USA (+20%). The
recovery of Europe’s mechanical engineering industry made it possible to
expand business volume in this segment. Siegling’s American operation took
advantage of the buoyant state of the US economy and strengthened its
market presence. In 1999, Siegling won the largest order in company history
for conveyor belts to equip a new package-handling center in the USA. The
Siegling Group also achieved higher sales in Asia, especially in Japan,
where the economy saw a slight improvement. The Group’s Chinese business
partner sold Forbo its 20% minority stake in Forbo Siegling (Shenyang).
This made the company into a wholly owned Forbo subsidiary in January 2000.

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In the 1999 business year, Siegling as industry leader had
developed new products, which would allow the company to further expand
sales in selected market segments. These products include, amongst others,
a new range of drive and machine belts for the textile and paper industries
and new processing belts for the textile printing industry.

The large-scale investment in the new production plant in Hanover
(Germany) was completed in 1999. Further funds were invested in renewing
and extending the drive and machine belts production facilities at Siegling
(Switzerland) SA in Wallbach. To counter falling prices in the belting
markets, operations in the year 2000 aimed to reduce costs in targeted
areas.

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CONCLUSIONS

In my work I wrote about company FORBO. The Forbo is group develops,
produces and markets products and systems in its two Divisions, Flooring
and Industry Specialties, each of which is made up of several business
units. These business units are focused on specific product groups and
carry responsibility for sales and income. Since our business units are
linked effectively they profit from numerous synergies.

Thanks to the Group’s attractive product portfolio and brand names that
are well established worldwide, Forbo occupies leading positions in its
core markets.

Forbo has an excellent store of product, manufacturing and market
expertise which it employs to the full in order to exploit existing synergy
potential, innovative thrust and to selectively expand its market
activities.

Forbo’s objective is to achieve a sustained increase in shareholder value
by focusing on profitable core products, through organic growth and
acquisitions and by systematically gearing its activities to market
requirements. The Forbo Group has approximately 5’800 employees worldwide.

Forbo has large assortment of flooring products like:

Carpets

Cushion Vinyl

The year 2000 was characterized by difficult market conditions. The
problem of excess capacities was further aggravated. Despite these
conditions, Forbo succeeded in maintaining its position in the major
European markets. Thanks to its extraordinary design and excellent benefits
the inlay chips technology of Forbo Novilon® gained further headway in
terms of market popularity.

Linoleum

With a market share of more than 60%, Forbo is the world’s leading
supplier of Linoleum, one of the Group’s core products. In 2000, sales
amounted to CHF 411 million, an increase of 2% compared to the year before.

Parquet Flooring

Adhesives

Belting

This company has big success in the world, but I think that Forbo will
be bigger, stronger and more famous in the world.

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VILNIUS COLLEGE OF CONSTRUCTION

Prepared by:

Lecturer:

Vilnius 2001 m.

CONTENS

ABOUT FOBO.............................
2

MISSION
STATEMENT.......................
..... 3

CUCHION VINYL ...................... 4

PARQUET FLOORING....................5

BELTING.......................
............. 6

CONCLUSIONS....................... .7

LIST OF LITERATURE....................8

LIST OF LITERATURE

NET SITE: www.forbo .com

FIRM BOOKLETS.

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