Slide 1: Investor Presentation August 2022
1 Investor Presentation August 2022
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, including, in particular, statements about Interface’s plans, strategies and prospects. These are based on the Company’s current assumptions, expectations and projections about future events. Although Interface believes that the expectations ref
Slide 3: Interface at a Glance
Interface is a Leader in Commercial Flooring • Headquartered in Atlanta, GA • 6 manufacturing locations on 4 continents • ~3,600 global employees • Sales in over 100 countries • ~1,000 Sales & Marketing professionals • Invented Modular Carpet Tile • Global Sustainability Leader • All products are Ca
Slide 4: Investment Thesis
Investment Thesis • Strong commercial brands that lead in growth areas of the industry • Share leader in a $39 billion global commercial flooring category: • Leading share in carpet tile and rubber • Growing share in LVT • Strong growth execution and positioned for future growth: • Selling system tr
Slide 5: Who We Are
Who We Are Leading global provider of commercial flooring: Carpet Tile, Modular Area Rugs, LVT, Rubber Strong brands with a history of innovation and a commitment to sustainability Engaged customer-centric culture focused on performance and galvanized around our sustainability mission Strong global
Slide 6: Interface is a Purpose-Driven Organization
Interface is a Purpose-Driven Organization Our Core Mission is to Lead a World-Changing Sustainability Movement Centered Around Climate Take Back While Also Executing on Five Strategic Pillars to Drive the Business 6 Grow our Commercial Business Expand our Living Space Business Drive Supply Chain Ex
Slide 7: ESG Highlights
Interface at a Glance 7 ESG Highlights Recognized sustainability leader for over two decades Insert insert insert insert • Recognized leader in sustainability for over two decades • Purpose-driven company galvanized around our sustainability mission • All of our products are carbon neutral across th
Slide 8: Positioning
Interface Positioning
Slide 9: Positioning
Interface Positioning 1. ICE BREAKER 4282028_DRYLANDS 2. LEVEL SET LVT A00421_RUSTIC OAK 3. BRUSHED LINES LVT A01618 CELADON 4. ICE BREAKER 4282031_MALACHITE 5. BRUSHED LINES LVT A01620_TEAL OXIDE 6. NORAMENT CASTELLO 926_5356 7. BROOME STREET 9440001_CORAL GLASS 8. STEP IT UP 9406012_JADE 9. TOUCH
Slide 10: Leading Global Provider of Commercial Flooring Solutions
Leading Global Provider of Commercial Flooring Solutions • Interface participates in the $39 Billion Global Commercial Flooring segment • We are the global share leader in the $5.0 Billion Carpet Tile segment which now exceeds the value of Broadloom globally • We entered the high growth $3.3 Billion
Slide 11: Participating in Attractive Commercial Flooring Segments
Participating in Attractive Commercial Flooring Segments 11 Wood Laminate LVT Other Resilient Ceramic Tile Carpet Tile Rubber Broadloom (4%) (2%) 0% 2% 4% 6% 8% 10% 12% 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% E s ti m a te d C A G R t h ro u g h 2 0 2 4 Gross Margin Bubble size = Global commer
Slide 12: Brand Leader in the Specified Channel
Brand Leader in the Specified Channel 12 Interface Positioning Source: Management estimates • Interface competes on design, sustainability and innovation, commanding a premium price point and industry leading margins • Interface is the share leader in the specified and end user channels of commercia
Slide 13: Global Sales and Manufacturing Platform
Global Sales and Manufacturing Platform • Sales & marketing offices in over 50 locations across 25 countries • Global account management • Six manufacturing locations on four continents • Global supply chain management • Unique blend of efficiency and customization Note: Figures represent LTM Q2 202
Slide 14: Diversified Customer Verticals
Diversified Customer Verticals CORPORATE OFFICE • Highest penetration of carpet tile vs broadloom • Global account management • Recurring renovations • Ongoing opportunity in Emerging Markets EDUCATION • K-12 and higher education • Second highest penetration of carpet tile vs broadloom • Second larg
Slide 15: Growth and Value Creation
Growth and Value Creation
Slide 16: Grow the Core Carpet Tile Business
• Enhance salesforce productivity – Capitalize on selling system transformation • Elevate and grow segments – Drive growth in priority segments including Corporate Office, Hospitality, Living and Education • Optimize product portfolio – Expand our portfolio to increase the addressable market, partic
Slide 17: Benefits of Modular Carpet Tile Driving Share Gains vs. Broadloom
Architect & Designer Specifier • Virtually endless styling choices • Truly custom – design by tile • No transition strips required • Better sustainability Dealer/Installer • Easier materials access into the building • Easier to handle and install • Less waste at end of job • One trade union for mult
Slide 18: Continue Building a Resilient Flooring Business
• Continue taking share in the high growth commercial LVT segment • Maximize cross-selling opportunities between nora® rubber flooring, LVT and carpet tile • Expand LVT offering in education and healthcare market with specialized 3mm product • Expand global participation • Strategically expand produ
Slide 19: Modular Flooring & Social Distancing
Modular Flooring & Social Distancing • Architects and Designers (A&D) are re-thinking space layouts and interior design elements as the world contemplates the return to work and school • Interface modular flooring plays an integral part in design solutions that: • Control occupant flow and traffic •
Slide 20: Purpose-Driven Culture – Galvanized Around a Common Sustainability Mission
1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 Purpose-Driven Culture – Galvanized Around a Common Sustainability Mission 20 Growth and Value Creation Unilever Pat
Slide 21: Environmental, Social and Governance Overview
Environmental, Social and Governance Overview
Slide 22: ESG Oversight
Interface ESG Overview ESG Oversight Interface’s Board of Directors provides oversight of our ESG strategy. Our Nominating and Governance Committee, chaired by our Lead Independent Director, is responsible for monitoring and advising the company’s management regarding environmental, social and relat
Slide 23: ESG Leadership and Transparency
Interface ESG Overview ESG Leadership and Transparency Awards and Recognition • GlobeScan SustainAbility Leaders Report – Top 5 Leader (1998-2021) • UN Global Climate Action Award Winner, Climate Neutral Now Category (2020) • Fast Company Top 10 Most Innovative Energy Companies (2020) • #1 Green Lea
Slide 24: Our Sustainability Journey: Mission Zero to Climate Take Back
Interface ESG Overview Our Sustainability Journey: Mission Zero to Climate Take Back 1994 Founder, Ray Anderson, declares that Interface is committed to becoming the world’s first environmentally sustainable – and, ultimately, restorative – company 1995 Established our ReEntry™ Recycling Program, re
Slide 25: Our Climate Commitment
Interface ESG Overview Our Climate Commitment Climate Take Back™ is our commitment to reversing global warming and creating a climate fit for life. We have set a goal to reduce our CO2 emissions across our company and supply chain by 2030 with a target validated by the Science Based Targets initiati
Slide 26: Significant Reductions in Environmental Impacts from Operations
Interface ESG Overview Significant Reductions in Environmental Impacts from Operations 96% 88% 48% 75%76% 92% Fewer greenhouse gas emissions* Less water used to make products* Of materials in the flooring products we sell are from recycled or bio-based sources Smaller cradle-to-gate product carbon f
Slide 27: All Interface Flooring is Carbon Neutral or Carbon Negative
Interface ESG Overview All Interface Flooring is Carbon Neutral or Carbon Negative All of the flooring products we sell - carpet tile, LVT and rubber - are carbon neutral across their full product life cycle through our third party verified Carbon Neutral Floors™ program. 27 Supporting Carbon Offset
Slide 28: The First Cradle-to-Gate Carbon Negative Carpet Tile
Interface ESG Overview The First Cradle-to-Gate Carbon Negative Carpet Tile 28 Our carpet tile materials are engineered to have a negative carbon footprint during the embodied carbon phase of the carbon life cycle. Guided by materials science, we’ve incorporated innovative new materials to our carpe
Slide 29: Environmental Impact Progress
Interface ESG Overview Environmental Impact Progress GREENHOUSE GAS EMISSIONS Net GHG Emissions at Global Carpet Tile Manufacturing Sites per Unit of Output PRODUCT CARBON FOOTPRINT – CARPET TILE Weighted Average Cradle-to-Gate Carbon Impacts of Carpet Tile Pre-Offsets RENEWABLE ENERGY USE % Renewab
Slide 30: Responsible Business
Interface ESG Overview Responsible Business Interface embraces and supports core values in the areas of human rights, labor standards, environmental responsibility and ethical practices. We are committed to conducting business in an ethical and responsible manner and leaving a positive impact on our
Slide 31: Purpose-Driven Culture and Core Values
Interface ESG Overview We’re more than a carpet company. Much more. We are a purpose-driven company with a passionate team that shares a unique set of values. Interface is its people. Our core values represent who we are, how we see the world, how we treat each other and our external customers and s
Slide 32: Employee Health and Safety
We prioritize the health and safety of our employees at Interface. We are committed to leading our industry in the development and implementation of world-class safety measures to protect the health, safety, and wellbeing of our people. We’ve implemented proactive programs that empower our employees
Slide 33: Training and Development
Interface ESG Overview Training and Development It is an exciting time to be an Interface employee. We know our employees are also brand ambassadors and provide them with the tools to tell our carbon story and bring stakeholders along on our journey through our Carbon 101 and Carbon Lovers training.
Slide 34: Community Engagement
Interface’s commitment to our people goes beyond our individual employees to include the communities where we live and work around the world. Community involvement activities are incorporated in our regional meetings and activities, providing meaningful engagement and positive change within our comm
Slide 35: Our Diversity, Equity & Inclusion Commitment
When we embrace the diversity of our community and commit to an equitable, inclusive culture, we are living our Interface values. We are engaging and collaborative, seeking input from our employees to make sure underrepresented voices are heard and solutions reflect a broad set of perspectives. We a
Slide 36: DEI 2021 Accomplishments
Interface ESG Overview DEI | 2021 Accomplishments We made significant progress in 2021, including establishing a foundational framework, procuring and deploying best- in-class tools and platforms, and leveraging internal and external communications channels to amplify our messages. ✓ Implemented Wor
Slide 37: DEI 2021 US Workforce Composition
Interface ESG Overview DEI | 2021 US Workforce Composition Interface is an equal opportunity employer. We provide equal employment opportunity to all applicants and employees without regard to race, color, religion, sex, national origin, age, disability, protected veteran status, or any other protec
Slide 38: DEI 2022 Benchmarks for Success
Interface ESG Overview DEI | 2022 Benchmarks for Success Strategy Development • Analyze employee experience survey feedback data and Workday HCM demographic data • Publish DEI benchmark and set ambitions for hiring, promotions, etc. • Create processes that help meet hiring and promotion objectives;
Slide 39: Strong Governance
Interface ESG Overview Strong Governance Interface is governed by an esteemed and diverse group of elected directors. Our Board of Directors is committed to maintaining strong corporate governance, which promotes the long-term interests of shareholders, strengthens Board and management accountabilit
Slide 40: Continuing our Leadership
Interface ESG Overview Interface has a long history of sustainability leadership and innovation, and our journey continues as we foster a team of diverse and engaged employees that will lead us into the future of environmentally and socially sustainable business with the next wave of pioneering tech
Slide 41: Additional ESG Information
Interface ESG Overview Additional Interface ESG information can be found at the following links: Learn More 41 ESG Highlights and Data for investors Sustainability Journey
Slide 42: Financial Performance
Financial Performance
Slide 43: GAAP Financial Results
Financial Performance GAAP Financial Results 43 ($ in millions, except EPS) First Six Months 2022 2021 Change 2022 2021 Change Net Sales $347 $295 18% $635 $548 16% Gross Profit 117 109 7% 224 205 9% % of Net Sales 33.7% 37.0% 35.2% 37.4% SG&A Expense 81 80 2% 160 159 0% % of Net Sales 23.5% 27.1% 2
Slide 44: Adjusted Financial Results
Financial Performance Adjusted Financial Results* 44 * See Appendix for a reconciliation on Non-GAAP figures ($ in millions, except EPS) First Six Months 2022 2021 Change 2022 2021 Change Net Sales $347 $295 18% $635 $548 16% Adjusted Gross Profit 119 110 8% 228 208 10% % of Net Sales 34.3% 37.5% 36
Slide 45: Adjusted EBITDA
Adjusted EBITDA Financial Performance Adjusted EBITDA* 45 $ million * See Appendix for a reconciliation on Non-GAAP figures $152 $185 $197 $146 $169 $187 $0 $50 $100 $150 $200 2017 2018 2019 2020 2021 LTM Q2 2022
Slide 46: Adjusted Earnings Per Share (Diluted)
Adjusted Earnings Per Share (Diluted) Financial Performance Adjusted Earnings Per Share* 46 $ million * See Appendix for a reconciliation on Non-GAAP figures $1.18 $1.49 $1.59 $1.15 $1.23 $1.40 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 2017 2018 2019 2020 2021 LTM Q2 2022
Slide 47: Capitalization and Liquidity
Total Debt Net Debt Net Debt / Adjusted EBITDA Financial Performance Capitalization and Liquidity* Adjusted EBITDA 47 $ million * See Appendix for a reconciliation on Non-GAAP figures $230 $619 $596 $577 $518 $545 $0 $175 $350 $525 $700 2017 2018 2019 2020 2021 Q2 2022 $143 $538 $515 $474 $421 $454
Slide 48: Financial Policy
Financial Performance Financial Policy Reduce Debt Reinvest in the Business Explore M&A Opportunities Return Excess Cash to Shareowners • Optimize cost of capital and target Net Debt / Adjusted EBITDA < 2.0x • Invest in strategic initiatives with high returns, including organic growth opportunities,
Slide 49: Who We Are
Who We Are Leading global provider of commercial flooring: Carpet Tile, Modular Area Rugs, LVT, Rubber Strong brands with a history of innovation and a commitment to sustainability Engaged customer-centric culture focused on performance and galvanized around our sustainability mission Strong global
Slide 50: Appendix
Appendix
Slide 51: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 51 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q2 2021 Q2 2022 First Six Months 2021 First Six Months 2022 Net Sales as Reported (GAAP) $294.8 $346.6 $548.0 $634.6 Impact of Changes in Curre
Slide 52: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 52 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q2 2021 Q2 2022 LTM Q2 2022 First Six Months 2021 First Six Months 2022 Net Income (Loss) as Reported (GAAP) $15.5 $16.8 $62.9 $22.4 $30.1 Purc
Slide 53: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures Note: Sum of reconciling items may differ from total due to rounding of individual components * Historical AEBITDA figures have been updated to reflect a change in depreciation and amortization values used to calculate AEBITDA. 53 ($ in millions) Q2 2021 Q