Slide 1: Investor Presentation March 2022
Investor Presentation MARCH 2022 1
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 • Over 1,000 Sales & Marketing professionals • Invented Modular Carpet Tile • Global Sustainability Leader • All products are
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: Opportunities for Growth
Opportunities for Growth 7 Consumer Presence via FLOR Product Innovation Continued Growth in Resilient Services as a Differentiator Broadloom Conversion Across Segments Enhanced Share of Dealer Discretionary
Slide 8: Interface Positioning
Interface Positioning 8
Slide 9: Attractive Product Portfolio
Carpet Tile • Industry-leading cradle-to-gate carbon negative carpet tile • Biomimicry-inspired random design (i2) • High recycled content • No glue installation (TacTiles®) • Faster, more profitable installation for contractors • Easily recycled (ReEntry® program) • Carbon neutral (Carbon Neutral F
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 • Seven manufacturing locations on four continents • Global supply chain management • Unique blend of efficiency and customization Note: Figures represent FY 2021,
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 15
Slide 16: 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 16 Grow our Commercial Business Expand our Living Space Business Drive Supply Chain E
Slide 17: 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 18: Benefits of Modular Carpet Tile
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 19: 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 20: 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 21: Purpose-Driven Culture
Purpose-Driven Culture – Galvanized Around a Common Sustainability Mission 21 Growth and Value Creation Unilever Patagonia IKEA Natura Nestle Danone 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
Slide 22: Radical Reductions in Environmental Impacts
Radical Reductions in Environmental Impacts 22 Growth and Value Creation Fewer greenhouse gas emissions* Smaller cradle-to-gate product carbon footprint * Less waste sent to landfills* Less water used to make products* Of materials in the flooring products we sell are from recycled or bio-based sour
Slide 23: Carpet Tile Carbon Footprint Comparison
23 Growth and Value Creation Carpet Tile Carbon Footprint Comparison Cradle-to-Gate, From Raw Material Extraction Through Manufacturing
Slide 24: The First Cradle-to-Gate Carbon Negative Carpet Tile
Product Innovation The First Cradle-to-Gate Carbon Negative Carpet Tile 24 Growth and Value Creation • Our goal is to make products with the lowest carbon footprint possible – products that go beyond neutral to help restore the health of the planet • We’ve innovated ways to work with recycled conten
Slide 25: Financial Performance
Financial Performance 25
Slide 26: GAAP Financial Results
Financial Performance GAAP Financial Results 26 Note: Q1 2020 consisted of 14 weeks vs. 13 weeks in Q1 2021 ($ in millions, except EPS) Full Year 2021 2020 Change 2021 2020 Change Net Sales $340 $277 23% $1,200 $1,103 9% Gross Profit 121 97 25% 433 411 5% % of Net Sales 35.7% 35.0% 36.0% 37.2% SG&A
Slide 27: Adjusted Financial Results
Financial Performance Adjusted Financial Results* 27 * See Appendix for a reconciliation on Non-GAAP figures Note: Q1 2020 consisted of 14 weeks vs. 13 weeks in Q1 2021 ($ in millions, except EPS) Full Year 2021 2020 Change 2021 2020 Change Net Sales $340 $277 23% $1,200 $1,103 9% Adjusted Gross Pro
Slide 28: Adjusted EBITDA
Adjusted EBITDA Financial Performance Adjusted EBITDA* 28 $ million * See Appendix for a reconciliation on Non-GAAP figures $141 $152 $185 $197 $146 $169 $0 $50 $100 $150 $200 $250 2016 2017 2018 2019 2020 2021
Slide 29: Adjusted Earnings Per Share (Diluted)
Adjusted Earnings Per Share (Diluted) Financial Performance Adjusted Earnings Per Share* 29 $ million * See Appendix for a reconciliation on Non-GAAP figures $1.03 $1.18 $1.49 $1.59 $1.15 $1.23 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 2016 2017 2018 2019 2020 2021
Slide 30: Capitalization and Liquidity
Total Debt Net Debt Net Debt / Adjusted EBITDA Financial Performance Capitalization and Liquidity* Adjusted EBITDA 30 $ million * See Appendix for a reconciliation on Non-GAAP figures $270 $230 $619 $596 $577 $518 $0 $175 $350 $525 $700 2016 2017 2018 2019 2020 2021 $105 $143 $538 $515 $474 $421 $0
Slide 31: Financial Policy
Financial Performance Financial Policy Reduce Debt Reinvest in the Business Explore M&A Opportunities Return Excess Cash to Shareowners • Utilize excess cash to pay down debt • Optimize cost of capital and target Net Debt / Adjusted EBITDA < 2.0x • Invest in strategic initiatives with high returns,
Slide 32: Who We Are
Who We Are Leading global provider of commercial flooring: Carpet Tile, Modular Area Rugs, LVT, Rubber Strong brands with a history of innovation and a commitment to sustainability Engaged customer-centric culture focused on performance and galvanized around our sustainability mission Strong global
Slide 33: Appendix
Appendix 33
Slide 34: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 34 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q4 2020 Q4 2021 Full Year 2020 Full Year 2021 Net Sales as Reported (GAAP) $276.9 $339.6 $1,103.3 $1,200.4 Impact of Changes in Currency - 3.6
Slide 35: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures 35 Note: Sum of reconciling items may differ from total due to rounding of individual components ($ in millions) Q4 2020 Q4 2021 Full Year 2020 Full Year 2021 Net Income (Loss) as Reported (GAAP) $19.6 $21.8 ($71.9) $55.2 Purchase Accounting Amortization 1
Slide 36: Reconciliation of Non-GAAP Figures
Appendix Reconciliation of Non-GAAP Figures Note: Sum of reconciling items may differ from total due to rounding of individual components * Historical AEBITDA figures have been updated to reflect a change in depreciation and amortization values used to calculate AEBITDA. 36 ($ in millions) Q4 2020 Q