Slide 1: Investor Presentation | November 2024
Investor Presentation | November 2024
Slide 2: Forward Looking Statements and Non-GAAP Measures
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. Al
Slide 3: Who We Are
3 At Interface, we’re Made for More 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 the built environment, industry,
Slide 4: Interface is a global leader in commercial flooring
Interface is a global leader in commercial flooring 4 $1.3 billion in net sales in FY2023 3,700 global employees 6 manufacturing locations on 4 continents ATL headquartered in Atlanta, GA Recognized leader in sustainability with over 50 years of innovation First cradle-to-gate carbon negative commer
Slide 5: Diversified Geographically and Customer Verticals
Healthcare 60% Americas 29% EMEA 11% APAC REVENUE BY REGION Diversified Geographically and Customer Verticals 5 Note: Figures represent LTM Q3 2024, figures in chart may not sum to 100% due to rounding 48% Corporate Office 20% Education Highest penetration of carpet tile vs broadloom Global acco
Slide 6: Interface: a compelling investment
Interface: a compelling investment 6 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 winning culture commitme
Slide 7: 'One Interface' Strategy
‘One Interface’ Strategy Build strong global functions to support our world-class local sales teams Accelerate growth through enhanced productivity of our commercial teams Expand margins through global supply chain management and complexity reduction Lead in design, innovation, and sustainab
Slide 8: Interface Positioning
Interface Positioning
Slide 9: Attractive Product Portfolio
Attractive Product Portfolio 9 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 Luxury Vinyl Tile (LVT) Crea
Slide 10: Leading Global Provider of Commercial Flooring Solutions
Total global commercial flooring market = $38.5 Billion Interface served market = $9+ Billion Global share leader in $4.9B Carpet Tile segment (now exceeds Broadloom segment globally) Leader in high growth $3.4B LVT segment Entered $1.0B Rubber segment in 2018, acquisition of nora, the categor
Slide 11: Brand Leader in the Specified Channel
- 20 40 60 80 100 120 Low End Mid-Range High End Brand Leader in the Specified Channel 11 Interface competes on design, sustainability and innovation, commanding a premium price point and industry leading margins. Source: 2023 World Map – Contract Carpet Tiles (AJCP Associates) Opportunity to expand
Slide 12: 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 LTM Q3 2024 Americas 60% of Net Sales Europe 29% of Net Sales Asia-Pacific 11% of N
Slide 13: ESG Overview
ESG Overview
Slide 14: Recent ESG Highlights
Recent ESG Highlights 14 Environmental Stewardship Reduce our environmental impact and make progress towards our science-based targets and climate goals. • Reduced GHG emissions by 12% • Decreased carbon footprint across all product categories • Refocused climate ambition on absolute emission reduct
Slide 15: 2023 Impact Report
15 Check out our report here: 2023 Impact Report The linked 2023 Impact Report is not a part of, or incorporated into, this presentation. 2023 Impact Report We are focused on reducing our environmental footprint, making Interface a great place to work, and doing business ethically and responsibly to
Slide 16: Financial Performance
Financial Performance
Slide 17: Financials at a Glance
Financials at a Glance 17 Currency Neutral Net Sales $343 +10.3% YoY Net Sales $344 +10.7% YoY Adjusted SG&A 24.8% % of Net Sales Adjusted Operating Income $43.5 12.6% of Net Sales Net Debt / Adjusted EBITDA 1.1x Net Sales $1,306 Adjusted EBITDA $195 14.9% of Net Sales Adjusted Operating Income $150
Slide 18: Third Quarter GAAP Financial Results
($ in millions, except EPS) 2024 2023 Change Net Sales $344 $311 11% Gross Profit 128 110 16% % of Net Sales 37.1% 35.5% SG&A Expense 85 79 8% % of Net Sales 24.8% 25.5% Operating Income 42 31 36% % of Net Sales 12.3% 10.0% Net Income 28 10 188% % of Net Sales 8.3% 3.2% Diluted EPS $0.48 $0.17 182%
Slide 19: Third Quarter Adjusted Financial Results
($ in millions, except EPS) 2024 2023 Change Net Sales $344 $311 11% Adjusted Gross Profit 129 112 16% % of Net Sales 37.5% 35.9% Adjusted SG&A Expense 85 79 8% % of Net Sales 24.8% 25.5% Adjusted Operating Income 43 32 34% % of Net Sales 12.6% 10.4% Adjusted Net Income 28 16 73% % of Net Sales 8.2%
Slide 20: Leverage and Earnings Metrics
Adjusted EBITDA Adjusted Earnings Per Share (Diluted) Net Debt / LTM Adjusted EBITDANet Debt Leverage and Earnings Metrics* 20 $ in millions * See Appendix for a reconciliation of Non-GAAP figures $ in millions
Slide 21: Financial Policy
Financial Policy 21 Balance capital allocation across investment in the business, managing our leverage ratio, and returning capital to shareholders. Reduce debt Optimize cost of capital and target Net Debt / Adjusted EBITDA < 2.0x Reinvest in the business Invest in strategic initiatives with high r
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Non-GAAP Figures
Reconciliation of Non-GAAP Figures 23 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q3 2023 Q3 2024 Net Sales as Reported (GAAP) $311.0 $344.3 Impact of Changes in Currency - (1.4) Currency Neutral Sales $311.0 $342.9 Gross Profit as Re
Slide 24: Reconciliation of Non-GAAP Figures (Net Income and EPS)
($ in millions) Q3 2023 Q3 2024 LTM Q3 2024 Net Income as Reported (GAAP) $9.9 $28.4 $84.7 Purchase Accounting Amortization 0.9 0.9 3.7 Thailand Plant Shutdown 0.2 - - Cyber Event Impact 0.1 - (0.2) Restructuring, Asset Impairment, Severance and Other, net - 0.0 3.5 Property Casualty (Recovery) Loss
Slide 25: Reconciliation of Adjusted EBITDA
($ in millions) Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Q3 2023 Q3 2024 LTM Q3 2024 Net (Loss) Income as Reported (GAAP) ($71.9) $55.2 $19.6 $44.5 $9.9 $28.4 $84.7 Income Tax (Benefit) Expense (7.5) 17.4 22.4 19.1 6.2 7.6 28.4 Interest Expense (including debt issuance cos