Slide 1: Investor Presentation | November 2023
Investor Presentation | November 2023
Slide 2: Forward Looking Statements and Non-GAAP Measures
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: Who We Are
3 At Interface, we believe flooring is more than what you walk on. Who We Are Leading Established GlobalDedicated Engaged provider of commercial flooring: carpet tile, rubber, and LVT brand with a history of innovation and a commitment to the pursuit of sustainability to performance and improving th
Slide 4: Interface at a Glance
4 Interface at a Glance Interface is a global leader in commercial flooring $1.3 billion in net sales in FY2022 3,600 global employees 6 manufacturing locations on 4 continents ATL headquartered in Atlanta, GA Recognized leader in sustainability First cradle-to-gate carbon negative commercial carpet
Slide 5: Interface: a compelling investment
5 Interface at a Glance Interface: a compelling investment Premium brands with attractive margins and leadership in core categories Carpet Tile LVT Rubber
Slide 6: Diversified portfolio positioned for growth across market segments
6 Interface at a Glance Diversified portfolio positioned for growth with strength across market segments Interface: a compelling investment 58% Americas 30% EMEA 12% APAC Revenue by Region 52% Non-office 48% Office Revenue by Customer Vertical Corporate Education Healthcare & Senior Living Transport
Slide 7: We are global leaders in...
7 Interface at a Glance Interface: a compelling investment We are global leaders in… … with a strong financial foundation Design InnovationSustainability attractive margins strong liquidity healthy balance sheet Im ag es © C hr is to ph er P ay ne / Es to … and unwavering commitment to our people wi
Slide 8: Strengths to Leverage and Opportunities for Growth
8 Interface at a Glance Interface: a compelling investment Strengths to Leverage • Selling system and customer partnerships • Sustainability leadership • Manufacturing expertise • Diversified portfolio • Strong cash generation and balance sheet Opportunities for Growth • Reset operating model to one
Slide 9: Interface Positioning
Interface Positioning
Slide 10: Attractive Product Portfolio
Interface Positioning Attractive Product Portfolio 10 Carpet Tile • Industry-leading cradle-to-gate carbon negative carpet tile • Biomimicry-inspired design (i2) • No glue installation with TacTiles® • Faster, more profitable installation for contractors • Recyclable via our ReEntry® program • Carbo
Slide 11: Leading Global Provider of Commercial Flooring Solutions
Leading Global Provider of Commercial Flooring Solutions Total global commercial flooring market = $39 Billion Interface served market = $9+ Billion • Global share leader in $5B Carpet Tile segment (now exceeds Broadloom segment globally) • Leader in high growth $3.3B LVT segment • Entered $1.0B Rub
Slide 12: Brand Leader in the Specified Channel
12 Brand Leader in the Specified Channel Interface competes on design, sustainability and innovation, commanding a premium price point and industry leading margins. Interface Positioning Source: Management estimates ~15-25% +25% Opportunity to expand in low/mid-range price points Maintain significan
Slide 13: Global Sales and Manufacturing Platform
Global Sales and Manufacturing Platform • Sales & marketing offices in over 45 locations across 20 countries • Global account management • Six manufacturing locations on four continents • Global supply chain management • Unique blend of efficiency and customization Note: Figures represent LTM Q3 202
Slide 14: Diversified Customer Verticals
Diversified Customer Verticals 14 Interface Positioning Note: Figures represent LTM Q3 2023, figures in chart may not sum to 100% due to rounding 48% Corporate 18% Education • Highest penetration of carpet tile vs broadloom • Global account management • New construction, renovations and remodels • L
Slide 15: Environmental, Social and Governance Overview
Environmental, Social and Governance Overview
Slide 16: ESG Overview
16 ESG Overview 2022 ESG Highlights • Became the first flooring manufacturer to be third- party certified as a Carbon Neutral across our entire business • Continued to make progress on our verified Science Based Targets • Transitioned 100% of our carpet tile product manufactured in Europe to our car
Slide 17: Click here to access our 2022 Impact Report
Click here to access our 2022 Impact Report 17 The linked 2022 Impact Report is not a part of, or incorporated into, this presentation 2022 Impact Report This report highlights our commitment to operating in an ethical and sustainable manner that benefits all stakeholders – employees, customers, sha
Slide 18: Financial Performance
Financial Performance
Slide 19: Financials At-a-Glance
19 Financials At-a-Glance* (in $ millions) Currency Neutral Net Sales $306.1 (6.6%) YoY Net Sales $311.0 (5.1%) YoY Adjusted SG&A 25.5% % of Net Sales Adjusted Operating Income $32.4 10.4% of Net Sales Net Debt / Adjusted EBITDA 2.1x Net Sales $1,271.9 Adjusted EBITDA $151.1 11.9% of Net Sales Adjus
Slide 20: GAAP Financial Results
Financial Performance GAAP Financial Results 20 ($ in millions, except EPS) 2023 2022 Change Net Sales $311 $328 (5%) Gross Profit 110 109 1% % of Net Sales 35.5% 33.2% SG&A Expense 79 81 (2%) % of Net Sales 25.5% 24.7% Operating Income 31 28 10% % of Net Sales 10.0% 8.6% Net Income (Loss) 10 14 (30
Slide 21: Adjusted Financial Results
($ in millions, except EPS) 2023 2022 Change Net Sales $311 $328 (5%) Adjusted Gross Profit 112 110 1% % of Net Sales 35.9% 33.7% Adj SG&A Expense 79 79 0% % of Net Sales 25.5% 24.2% Adjusted Operating Income 32 31 4% % of Net Sales 10.4% 9.5% Adjusted Net Income 16 17 (6%) % of Net Sales 5.3% 5.3%
Slide 22: Earnings Metrics
22 Financial Performance Earnings Metrics* Adjusted EBITDA Adjusted Earnings Per Share (Diluted) * See Appendix for a reconciliation of Non-GAAP figures $ millions
Slide 23: Capitalization and Liquidity
Cash Total Debt Net Debt / LTM Adjusted EBITDA Financial Performance Capitalization and Liquidity* Net Debt 23 $ millions * See Appendix for a reconciliation of Non-GAAP figures
Slide 24: Financial Policy: Capital Deployment Philosophy
24 Financial Performance Balance capital allocation across investment in the business, managing our leverage ratio, and returning capital to shareholders. Financial Policy Reduce debt Optimize cost of capital and target Net Debt / Adjusted EBITDA < 2.0x Reinvest in the business Invest in strategic i
Slide 25: Appendix
Appendix
Slide 26: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 26 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q3 2022 Q3 2023 Net Sales as Reported (GAAP) $327.8 $311.0 Impact of Changes in Currency - (4.9) Currency Neutral Sales $327.8 $306.1 Gross Pro
Slide 27: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 27Note: Sum of reconciling items may differ from total due to rounding of individual components (1) Represents insurance recovery of loss recognized in the first quarter of 2023. (2) Russia and Brazil foreign subsidiaries were substantially liquidated duri
Slide 28: 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. (1) Represents insurance rec