Tarkett SA · SWB:1T9
Tarkett SA — Q1 2016 Earnings Presentation
25 slides from Tarkett SA's earnings presentation, Apr 22, 2016
Slide 1: 2016 Q1 Financial Results
2016 Q1 Financial Results April 2016
Slide 2: Diversified exposures providing resilience to industry cycles
Diversified exposures providing resilience to industry cycles One of the broadest Attractive end-markets exposure Balanced geographic product portfolios exposure in the flooring industry New CIS, APAC & Residential construction LATAM Sports ~30% ~20% 22% North America 16% Vinyl & 41% Rubber & Linole
Slide 3: Balanced sales and profitability
Balanced sales and profitability Sales breakdown by segment EBITDA breakdown by segment 2015 2015 Sports Sports 16% 13% EMEA 34% EMEA 42% North €2.7bn America €285m North 25% America 28% CIS, APAC, LATAM CIS, APAC, 22% LATAM 22% 20% Q1 2016 Financial Results – April 22, 2016 2
Slide 4: Q1 2016 Highlights
Q1 2016 Highlights Net Sales of €576m, +4.2% organic growth vs. Q1 2015(1) Strong start to the year in North America (+11.4% organic growth), EMEA (+5.5%) and Sports (+14.1%) Adjusted EBITDA(2) reached €45.0m vs. €31.8m in Q1 2015 (+41.5%) Adjusted EBITDA margin increased to 7.8% from 5.7% in Q1 201
Slide 5: Net sales Q1 2016 vs. Q1 2015
Net sales Q1 2016 vs. Q1 2015 €m 18.6 6.4 0.6 12.3 (13.9) (8.9) 584.6 576.3 Organic1 561.2 Growth +4.2% Q1 March-15 EMEA TNA CIS, APAC & TSP Sales LfL Currencies Selling price lag Q1 March-16 LATAM effect in CIS Note: (1) Organic growth: At same perimeter and exchange rates (NB: In the CIS, price in
Slide 6: Adjusted EBITDA Q1 2016 vs. Q1 2015
Adjusted EBITDA1 Q1 2016 vs. Q1 2015 €m 10.5 (6.0) 4.6 11.2 (0.1) 45.0 (2.7) 31.8 (4.3) Q1 2015 Currencies Selling price Volume/Mix Sales pricing Purchase Productivity SG&A, Wage Q1 2016 lag effect in pricing increase & CIS Other Note: (1) Adjusted EBITDA: Adjustments include expenses related to res
Slide 7: EMEA Q1 2016
EMEA Q1 2016 Net sales evolution - €m Comments Most countries contributed to the organic growth, in particular Nordic countries, the UK, Germany Net sales organic growth1 +5.5% Spain is slowing down France posted a slightly positive organic growth 232.4 226.5 LVT category is the main driver
Slide 8: North America Q1 2016
North America Q1 2016 Net sales evolution - €m Comments Net sales organic growth1 +11.4% Most products benefited from this performance, both in the residential and in the commercial sectors VCT category, negatively impacted in H1 2015 by the production transfer issues, is recovering 187.2 162.8
Slide 9: CIS, APAC & LATAM Q1 2016
CIS, APAC & LATAM Q1 2016 Net sales evolution - €m Comments Market conditions remained unfavorable in the CIS. Consumer purchasing power still very much constrained Net sales organic growth1 -11.0% “Lag effect’’ accounted for a loss of €9m in net sales Latest price increase in Russia: March 20
Slide 10: Sports Q1 2016
Sports Q1 2016 Net sales evolution - €m Comments Net sales organic growth1 +14.1% Good start to the year for artificial turf and running tracks Our hybrid-turf technology GrassMaster® selected by Stade de France, notably for Euro 2016 football competition, including Opening and Final games 53.2
Slide 11: Key Initiatives
@ Tarkett THE ULTIMATE FLOORING EXPERLENCE
Slide 12: Sustainability, a key driver for business
Sustainability, a key driver for business Indoor air quality and healthy spaces Reuse and Recycling in France Acczent® and Ruby Vinyl Sheet Products newly Partnership with Veolia in France for the ReStart® certified asthma & allergy friendly™ in North America program to collect and recycle post-
Slide 13: Major innovations
Major innovations iQ One in EMEA Revolution 360 in North America Homogeneous non-PVC thermoplastic flooring Artificial turf: high performance technology for sports surfaces Answers certain client requirements for PVC alternatives New fiber from FieldTurf providing optimal durability, resilie
Slide 14: Increase production capacity in growing categories and regions
Increase production capacity in growing categories and regions Extension of LVT production line in Jaslo, Poland Extension of our industrial footprint in China Increases LVT production capacity in EMEA, to meet Opening of a brand-new homogeneous vinyl fast-growing demand for modular solutions pr
Slide 15: Conclusion
. _—> @ Tarkett THE ULTIMATE FLOORING EXPERLENCE ‘ Conclusion al
Slide 16: Take Aways - Strength of the business model
Take Aways - Strength of the business model Strong start to the year in three of the four segments: +4.2% organic growth Q1 2016 Take Aways Increased profitability: +210 bps in adjusted EBITDA margin Confirmed recovery in North America after a good H2 2015 Continue growth in EMEA, North Amer
Slide 17: 2016 Q1 Financial Results Q&A session
2016 Q1 Financial Results Q&A session April 2016
Slide 18: Appendices
@ Tarkett THE ULTIMATE FLOORING EXPERLENCE
Slide 19: 2013-2015: a different company profile
2013-2015: a different company profile Sales breakdown by segment 2013 2015 Sports Sports 11% EMEA 16% 27% EMEA 34% €2.5bn €2.7bn North North America America 27% 28% CIS, APAC, CIS, APAC, LATAM LATAM 35% 22% Q1 2016 Financial Results – April 22, 2016 18
Slide 20: CIS now represent less than 20% of adjusted EBITDA
CIS now represent less than 20% of adjusted EBITDA 2013 2015 Sports 4% Sports EMEA 13% 21% North America 21% EMEA 42% North €310m America €285m 25% CIS, APAC, LATAM CIS, APAC, 54% 54% LATAM 20% 20% Q1 2016 Financial Results – April 22, 2016 19
Slide 21: Ruble & Russia vinyl prices evolution
Ruble & Russia vinyl prices evolution Q1’16: 1EUR = 82.5RUB -12.4% vs. Q4’15 -14.3% vs Q1’15 55% 45% 35% 25% 15% 5% ‐5% RUB devaluation (inversed) Devaluation ‐ 1/3 FX saving on costs Price change 20
Slide 22: 2016 Q1 Sales and Adjusted EBITDA performance
2016 Q1 Sales and Adjusted EBITDA 2 performance Q1 Organic €m 2016 2015 % growth Growth 1 EMEA 232.4 226.5 +2.6% +5.5% North America 187.2 162.8 +15.0% +11.4% Net sales CIS, APAC & LATAM 103.5 126.4 -18.1% -11.0% Sports 53.2 45.5 +17.0% +14.1% TOTAL 576.3 561.2 +2.7% +4.2% Adjusted EBITDA 2 45.0 31.
Slide 23: 2015 FY performance
2015 FY performance Net sales Adjusted EBITDA 3 % of % of Organic €m 2015 2014 % growth 2015 FY’15 net 2014 2 FY’14 net Growth 1 sales sales EMEA 917.6 681.3 +34.7% +6.7% 137.5 15.0% 77.1 11.3% North 771.2 658.0 84.0 10.9% 63.8 9.7% +17.2% -0.7% America CIS, APAC & 586.7 771.1 66.9 11.4% 146.0 18.9%
Slide 24: Shareholder composition - As at December 31, 2015
Shareholder composition - As at December 31, 2015 Treasury Shares 0.3% Free Float 28.0% Société d’Investissement Deconinck 50.2% KKR international Flooring 21.5% Q1 2016 Financial Results – April 22, 2016 23
Slide 25: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained here