Slide 1: Investor Presentation | February 2024
Investor Presentation | February 2024
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 FY2023 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 Geographically and Customer Verticals
58% Americas 30% EMEA 12% APAC Revenue by Region Diversified Geographically and Customer Verticals 6 Interface Positioning Note: Figures represent Fiscal Year 2023, figures in chart may not sum to 100% due to rounding 49% Corporate Office 18% Education • Highest penetration of carpet tile vs broadlo
Slide 7: Interface: a compelling investment
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 • Physical presence in 18 countries • Global account management • Six manufacturing locations on four continents • Global supply chain management • Unique blend of efficiency and customization Note: Figures represent Fiscal Year 2023 Americas 58% of Net Sales
Slide 14: Environmental, Social and Governance Overview
Environmental, Social and Governance Overview
Slide 15: ESG Overview
15 ESG Overview Recent ESG Highlights • Continue to implement our Climate Transition Plan to make progress on our verified Science Based Targets • Transitioned 100% of our carpet tile product manufactured in Europe to our carbon negative CQuest backing • Expanded our carbon negative-backed carpet ti
Slide 16: 2022 Impact Report
Click here to access our 2022 Impact Report 16 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 17: Financial Performance
Financial Performance
Slide 18: Financials At-a-Glance
18 Financials At-a-Glance* (in $ millions, except EPS) Currency Neutral Net Sales $321 (4.5%) YoY Net Sales $325 (3.1%) YoY Adjusted SG&A 25.7% % of Net Sales Adjusted Operating Income $41.0 12.6% of Net Sales Net Debt / Adjusted EBITDA 1.9x Net Sales $1,261 Adjusted EBITDA $162 12.8% of Net Sales A
Slide 19: GAAP Financial Results
Financial Performance GAAP Financial Results 19 ($ in millions, except EPS) 2023 2022 Change 2023 2022 Change Net Sales $325 $336 (3%) $1,261 $1,298 (3%) Gross Profit 123 105 17% 441 438 1% % of Net Sales 37.9% 31.4% 35.0% 33.7% SG&A Expense 88 83 5% 339 324 5% % of Net Sales 27.1% 24.9% 26.9% 25.0%
Slide 20: Adjusted Financial Results
Financial Performance Adjusted Financial Results* 20 * See Appendix for a reconciliation of Non-GAAP figures ($ in millions, except EPS) 2023 2022 Change 2023 2022 Change Net Sales $325 $336 (3%) $1,261 $1,298 (3%) Adjusted Gross Profit 124 111 12% 446 450 (1%) % of Net Sales 38.3% 33.2% 35.4% 34.7%
Slide 21: Earnings Metrics
21 Financial Performance Earnings Metrics* Adjusted EBITDA Adjusted Earnings Per Share (Diluted) * See Appendix for a reconciliation of Non-GAAP figures $ millions
Slide 22: Capitalization and Liquidity
Cash Total Debt Net Debt / LTM Adjusted EBITDA Financial Performance Capitalization and Liquidity* Net Debt 22 $ millions * See Appendix for a reconciliation of Non-GAAP figures
Slide 23: Financial Policy: Capital Deployment Philosophy
23 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 generally target over time Net Debt / Adjusted EBITDA < 2.0x Reinvest in the business I
Slide 24: Appendix
Appendix
Slide 25: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 25 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q4 2022 Q4 2023 Fiscal Year 2022 Fiscal Year 2023 Net Sales as Reported (GAAP) $335.6 $325.1 $1,297.9 $1,261.5 Impact of Changes in Currency -
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 (1) Represents insurance recovery of loss recognized in 2023. (2) Russia and Brazil foreign subsidiaries were substantially liquidated in 2023. The related cum
Slide 27: 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