Slide 1: Investor Presentation | August 2023
Investor Presentation | August 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, LVT, rigid core, and vinyl sheet brand with a history of innovation and a commitment to the pursuit of sustainability to per
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 59% Americas 29% 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 design, innovation, sustainability
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, up from ~$4.2 Billion prior to 2017 • Global share leader in $5B Carpet Tile segment (now exceeds Broadloom segment globally) • Entered high growth $3
Slide 12: Participating in Attractive Commercial Flooring Segments
12 Interface Positioning Interface serves growing segments of hard and soft surface with the highest margins. Participating in Attractive Commercial Flooring Segments Source: Management estimates Segment Size vs. Forecasted Growth and Gross Margin Wood Laminate LVT Other Resilient Ceramic Tile Carpe
Slide 13: Brand Leader in the Specified Channel
13 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 14: 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 Q2 202
Slide 15: Diversified Customer Verticals
Diversified Customer Verticals 15 Interface Positioning Note: Figures represent LTM Q2 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 16: Environmental, Social and Governance Overview
Environmental, Social and Governance Overview
Slide 17: ESG Overview
17 ESG Overview 2021 ESG Highlights • Received validation of our 2030 greenhouse gas reduction targets as science-based from the Science-Based Targets initiative (SBTi) • Continued to deliver flooring products that are carbon neutral across their full product life cycle through Carbon Neutral Floors
Slide 18: 2021 ESG Report, Design With Purpose
Click here to access our 2021 ESG Report, Design With Purpose This report highlights our progress to reduce environmental impacts, cultivate social responsibility, and operate with strong governance. 18 The linked 2021 ESG Report is not a part of, or incorporated into, this presentation
Slide 19: Financial Performance
Financial Performance
Slide 20: Financials At-a-Glance
20 Financials At-a-Glance* (in millions) Currency Neutral Net Sales $330.3 (4.7%) YoY Net Sales $329.6 (4.9%) YoY Adjusted SG&A 25.5% % of Net Sales Adjusted Operating Income $27.9 8.5% of Net Sales Net Debt / Adjusted EBITDA 2.5x Net Sales $1,288.7 Adjusted EBITDA $150.3 11.7% of Net Sales Adjusted
Slide 21: GAAP Financial Results
Financial Performance GAAP Financial Results 21 ($ in millions, except EPS) 2023 2022 Change Net Sales $330 $347 (5%) Gross Profit 112 117 (4%) % of Net Sales 33.9% 33.7% SG&A Expense 86 81 5% % of Net Sales 25.9% 23.5% Restructuring Charges & Other Charges (3) 1 NM Operating Income 29 35 (16%) % of
Slide 22: Adjusted Financial Results
Financial Performance Adjusted Financial Results* 22 * See Appendix for a reconciliation of Non-GAAP figures ($ in millions, except EPS) 2023 2022 Change Net Sales $330 $347 (5%) Adjusted Gross Profit 112 119 (6%) % of Net Sales 33.9% 34.3% Adj SG&A Expense 84 80 4% % of Net Sales 25.5% 23.2% Adjust
Slide 23: Earnings Metrics
23 Financial Performance Earnings Metrics* Adjusted EBITDA Adjusted Earnings Per Share (Diluted) * See Appendix for a reconciliation of Non-GAAP figures $ million $185 $197 $146 $169 $176 $150 2018 2019 2020 2021 2022 LTM Q2 2023 $1.49 $1.59 $1.15 $1.23 $1.25 $0.93 2018 2019 2020 2021 2022 LTM Q2 20
Slide 24: Capitalization and Liquidity
Cash Total Debt Net Debt / LTM Adjusted EBITDA Financial Performance Capitalization and Liquidity* Net Debt 24 $ million * See Appendix for a reconciliation of Non-GAAP figures $81 $81 $103 $97 $98 $93 2018 2019 2020 2021 2022 Q2 2023 $619 $596 $577 $518 $520 $476 2018 2019 2020 2021 2022 Q2 2023 $5
Slide 25: Financial Policy
25 Financial Performance Balance capital allocation across investment in the business, managing our leverage ratio, and returning capital to shareholders. Financial Policy Reduce debt Optimize cost of capital and target Net Debt / Adjusted EBITDA < 2.0x Reinvest in the business Invest in strategic i
Slide 26: Appendix
Appendix
Slide 27: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 27Note: Sum of reconciling items may differ from total due to rounding of individual components (1) Represents insurance recovery of loss recognized in the first quarter of 2023. ($ in millions) Q2 2022 Q2 2023 Net Sales as Reported (GAAP) $346.6 $329.6 Im
Slide 28: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 28Note: Sum of reconciling items may differ from total due to rounding of individual components (1) Represents insurance recovery of loss recognized in the first quarter of 2023. ($ in millions) Q2 2022 Q2 2023 LTM Q2 2023 Net Income (Loss) as Reported (GA
Slide 29: 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