Investor PresentationJUNE 2019
page 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 reflected in these forward-looking statements are
reasonable, the Company can give no assurance that these expectations will prove to be correct or that
savings or other benefits anticipated in the forward-looking statements will be achieved. Important
factors, some of which may be beyond the Company’s control, that could cause actual results to differ
materially from management’s expectations include the matters discussed under the heading “Risk
Factors” included in the Company’s Quarterly Report on Form 10-Q for the period ended March 31,
2019 and its most recent Annual Report on Form 10-K, which discussions are hereby incorporated by
reference. Forward-looking statements in this presentation include, without limitation, the information set
forth on the slide titled “Growth and Value Creation Strategy”, the section of this presentation titled
“Growth and Value Creation” and the slide titled “Investment Thesis”. Other forward-looking statements
can be identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,”
“could,” “seek,” “project,” “estimate,” “target,” and similar expressions. Forward-looking statements
speak only as of the date made. The Company assumes no responsibility to update or revise forward-
looking statements and cautions listeners and meeting attendees not to place undue reliance on any
such statements.
This presentation includes certain financial measures not calculated in accordance with U.S. GAAP.
They may be different from similarly titled non-GAAP measures used by other companies, and should
not be used as a substitute for, or considered superior to, GAAP measures. Reconciliations to the most
directly comparable GAAP measures appear in the Appendix.
page 3
Interface at a Glance
Interface is a global leader of commercial flooring solutions
including carpet tile, luxury vinyl tile (LVT) and rubber flooring.
Headquartered in Atlanta, GA
7 manufacturing locations on 4 continents
4,100 global employees
Sales in over 110 countries
New Product Vitality Index** of 38%
All products are Carbon Neutral
55%30%
15%
Americas
EMEA
APAC
47%53%
Corporate
Office
Non-Office
** New Product Vitality represents products launched in the past three years and custom products
Note: Geographic breakdown and segment figures represent proforma FYE 2018 sales for Interface and nora combined
($ in millions, except EPS) 2017 2018
Net Sales $996 $1,180
Adj Operating Income* $119 $134
Adj EPS (Diluted)* $1.18 $1.49
Net Debt* $538
Proforma Adj EBITDA* $210
Proforma Adj EBITDA % of Net Sales* 16%
Net Debt / Proforma Adj EBITDA* 2.6x
ROIC* 15% * See Appendix for a reconciliation of Non-GAAP figures
page 4
42%Gross Profit
Margin
15%Operating
Income Margin
19%EBITDA
Margin
Investment Thesis
VALUE DRIVERS
• Strong brands that are participating in growth areas of the industry
• Positioned for growth in a $34 billion global category:
– Leading share in carpet tile with ~22% of the segment
– Leading share in rubber with ~30% of the segment
– Growing share in LVT with ~2% of the segment
• Attractive and expanding margin structure
• Global footprint with manufacturing on four continents
• Strong track record of value creation
• 16% Adjusted EBITDA CAGR
MID-TERM OBJECTIVES (4-6 years)
$116
$157 $142
$152
$186
$210
2014 2015 2016 2017 2018 Proforma
2018*
ADJUSTED EBITDA*($ in millions)
* See Appendix for a reconciliation of Non-GAAP figures
page 5
Investment Highlights: Who We Are
leading
global provider
of commercial
flooring solutions
most valuable
brand
in the flooring
category
strongest global
sales &
marketing
capabilities
global
manufacturing
footprint and
industry-leading
gross margins
engaged,
customer-centric
culture, focused
on performance
and galvanized
around our
sustainability
mission
page 6
Grow the Core
Carpet Tile
Business
Build
a Resilient
Flooring
Business
Execute
Supply Chain
Productivity
Optimize SG&A
Resources
Growth and Value Creation Strategy
Lead a World-Changing Sustainability MovementCentered Around Mission Zero and Climate Take Back.
Interface’s vision is to become the world’s most valuable
interior products & services company
Interface PositioningInterfacePositioning
page 8
GLOBAL COMMERCIAL FLOORING SEGMENT (in Billions)
Source: Management estimates
Leading Global Provider of Flooring Solutions
• Interface participates in the $34 Billion Global Commercial Flooring segment
• We are the global share leader in the $4.6 Billion Carpet Tile segment which continues to take share from
broadloom
• We entered the high growth $3.0 Billion LVT segment in 2017
• We entered the $0.9 Billion Rubber flooring segment with our acquisition of nora, the category leader
• Our served market has expanded from ~$4.2 Billion a couple of years ago to an estimated $8.5 Billion today
$10.1 $3.0$0.9
$2.7
$4.7
$2.9
$5.4
$4.6
page 9
Ceramic Tile$10.1B
Carpet Tile$4.6B
LVT$3.0B
Laminate$2.7B
Other Resilient$2.9B
Broadloom$5.4B
Wood$4.7B
Rubber$0.9B
0%
1%
2%
3%
4%
5%
6%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Est
. C
AG
R t
hru
2020
Gross Margin
GLOBAL COMMERCIAL FLOORING: SEGMENT SIZE vs FORECASTED GROWTH and GROSS MARGIN
Participating in Attractive Commercial Flooring Segments
• Interface serves growing segments of hard and soft surface with the highest margins
Source: Management estimates
page 10
9%17% 42%
0
10
20
30
40
50
60
70
80
90
100
Low End Mid-Range High End
volu
me
in m
illio
ns o
f sq
ua
re m
ete
rs
Interface
Total
GLOBAL CARPET TILE SEGMENT BY CHANNEL
Premium Player in the Specified Channel
• 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 commercial carpet tile which are
highly influenced by Architects & Designers
INTERFACE GLOBAL SHARE OF CARPET TILE
PRICE CATEGORIES
Source: Management estimates
Oth
er
page 11
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 Floors™)
Luxury Vinyl Tile (LVT)• Creative design freedom
• Complements and enhances our carpet tile portfolio
− No transition strips needed
− Same sizes as our carpet tiles
• High acoustic value (Sound Choice™ backing)
• Carbon neutral (Carbon Neutral Floors™)
Rubber• norament® - sheet rubber
• noraplan® - modular rubber tiles
• Ideal for hygienic, safe flooring applications
• Extremely durable with strong chemical resistance
• Carbon neutral (Carbon Neutral Floors™)
Attractive Product Portfolio
page 12
Benefits of Modular
• Creative design freedom
• No glue, no pad
• Lower cost to change
• Produces less waste
• Faster, more profitable installation
for contractors
• Easier to reconfigure and maintain
• Selective replacement
Modular Product Offering
page 13
Global Sales and Manufacturing Platform
• Sales in over 110 countries
• 1,100 sales & marketing professionals
• Global account management
• Seven manufacturing locations on four continents
• Global supply chain management
• Unique blend of efficiency and customization
Note: Figures represent proforma FYE 2018 for Interface and nora combined
Carpet Tile Manufacturing Facility
Showroom Location
AMERICAS
55%of Net Sales
EMEA
30%of Net Sales
ASIA-PACIFC
15% of Net Sales
Rubber Manufacturing/Distribution Facility
page 14page 14
Diversified Customer Verticals
CORPORATE OFFICE• Highest penetration of carpet tile vs broadloom
• Global Account management
• Emerging market penetration
47%53%
BILLINGS BY SEGMENT
Office Non-Office
EDUCATION• K-12 and higher education
• Second highest penetration of carpet tile vs
broadloom
• Second largest market for rubber
HOSPITALITY• Guest rooms, corridors and public spaces
• Named the brand standard or alternate at Hilton,
Marriott, IHG and Choice Hotels properties
RETAIL• Retail and bank branches
• Significant opportunity for broadloom conversion
• High penetration of LVTNote: Figures represent proforma FYE 2018
sales for Interface and nora combined
HEALTHCARE• Hospitals, MOB, Assisted Living and Senior Living
• Largest rubber market based on hygienic properties,
chemical resistance and durability
Growth andValue Creation
page 16
Grow the Core
Carpet Tile
Business
Build
a Resilient
Flooring
Business
Execute
Supply Chain
Productivity
Optimize SG&A
Resources
Growth and Value Creation Strategy
Lead a World-Changing Sustainability MovementCentered Around Mission Zero and Climate Take Back.
Interface’s vision is to become the world’s most valuable
interior products & services company
page 17page 17
Grow the Core Carpet Tile Business
• Enhance salesforce productivity – Execute
on selling system transformation including
reorganization, training and technology
tools
• 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
• Lead the market in design and innovation –
Continue to introduce innovative new
products that energize and inspire
• Continue to develop brand love,
commanding the strongest Net Promoter
Score among A&D and End Users
page 18page 18
Build a Resilient Flooring Business
• Continue penetrating the high growth
LVT segment, building on successful
global LVT launch
• Integrate nora® rubber flooring into our
product portfolio
• Leverage innovation pipeline
• Expand global participation
• Strategically expand product portfolio
page 19
Resilient Flooring: nora Acquisition
nora is a leading global manufacturer of commercial rubber
floorcovering systems for healthcare, education, life sciences,
public buildings and other end markets
page 20
Interface and nora Together
59%25%
15%
Americas
EMEA
APAC
55%30%
15%
Americas
EMEA
APAC
+
63%
37%38%62%
45%55%
47%53%
60%
40%
57%43%
Office
85%
15%
75%
25%
Americas EMEA APAC Americas EMEA APAC
Non-office
Office
Non-office
Note: Figures represent proforma FYE 2018 sales for Interface and nora combined
Geogra
phic
Reach
Se
gm
en
tatio
n
excluding nora
page 21page 21
Execute Supply Chain Productivity
• Execute Troup County Optimization plan
which we expect to yield annualized
savings of $30M
• Implement a dynamic yarn strategy
• Continue to deliver on productivity
pipeline initiatives
page 22
Purpose-DrivenCultureGalvanizedAround aCommonSustainability Mission GLOBESCAN SUSTAINABILITY SURVEY – 20+ YEAR HISTORY
1997 1998 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Unilever
Patagonia
Interface
IKEA
Tesla
Natura
M&S
Nestle
page 23
• We commit to running our business in a way that creates a climate fit for life – and we call on others to
do the same.
• We expect to demonstrate that industry can operate with carbon negative business models. As a first
step, we are the first global flooring manufacturer to offer carbon neutral carpet tile and LVT across our
entire product range.
Purpose-Driven Companies Outperform their Peer Sets
ENERGY USE 43%
RENEWABLE ENERGY 88%
GHG EMISSIONS 96%
WASTE TO LANDFILL 91%
WATER INTAKE 88%
RECYCLED & BIOBASED MATERIALS 58%
PRODUCT CARBON FOOTPRINT 66%
Reduction versus 1996 Baseline
CLIMATE TAKE BACK
page 24
7 k g
2 k g
Moving Toward a Carbon Negative Business Model
It is possible to make a product with the potential to
reverse global warming.
CO2
Proof Positive
Carpet Tile Prototype
FinancialPerformance
page 26
GAAP Financial Results
($ in millions, except EPS) First Quarter Fiscal Year End
2019 2018 Change 2018 2017 Change
Net Sales $297.7 $240.6 24% $1,179.6 $996.4 18%
Gross Profit 115.4 93.6 23% 424.4 386.0 10%
% of Net Sales 38.8% 38.9% 36.0% 38.7%
SG&A Expense 99.0 70.6 40% 327.5 267.2 23%
% of Net Sales 33.3% 29.3% 27.8% 26.8%
Operating Income 16.4 23.0 (29%) 76.4 111.6 (32%)
% of Net Sales 5.5% 9.6% 6.5% 11.2%
Net Income 7.1 15.1 (53%) 50.3 53.2 (6%)
% of Net Sales 2.4% 6.3% 4.3% 5.3%
EPS (Diluted) $0.12 $0.25 (52%) $0.84 $0.86 (2%)
RECENT QUARTER RECENT YEAR END
page 27
Adjusted Financial Results*
* See Appendix for a reconciliation on Non-GAAP figures
** No adjustments for first quarter 2019
($ in millions, except EPS) First Quarter Fiscal Year End
2019 2018 Change 2018 2017 Change
Net Sales $297.7 $240.6 24% $1,179.6 $996.4 18%
Adjusted Gross Profit 117.3 93.6 25% 456.5 386.0 18%
% of Net Sales 39.4% 38.9% 38.7% 38.7%
Adjusted SG&A Expense** 99.0 70.6 40% 322.2 267.2 21%
% of Net Sales 33.3% 29.3% 27.3% 26.8%
Adjusted Operating Income 18.3 23.0 (20%) 134.3 118.9 13%
% of Net Sales 6.1% 9.6% 11.4% 11.9%
Adjusted Net Income 8.4 15.1 (44%) 89.0 73.1 22%
% of Net Sales 2.8% 6.3% 7.5% 7.3%
Adjusted EPS (Diluted) $0.14 $0.25 (44%) $1.49 $1.18 26%
Adjusted EBITDA $31.4 $34.1 (8%) $186.1 $152.4 22%
RECENT QUARTER RECENT YEAR END
page 28
Organic Sales Growth
FYE ORGANIC SALES*($ in millions)
Q1 ORGANIC SALES*($ in millions)
• Organic sales were up 2% in Q1 2019
• nora sales were up 9% in Q1 2019
* See Appendix for a reconciliation on Non-GAAP figures
$241$246
$175
$200
$225
$250
$275
Q1 2018 Q1 2019
$992
$1,059
$600
$700
$800
$900
$1,000
$1,100
2017 2018
page 29
$152
$186
$0
$50
$100
$150
$200
2017 2018
Adjusted EBITDA Growth
FYE ADJUSTED EBITDA*($ in millions)
• Adjusted EBITDA grew 22% in FYE 2018
* See Appendix for a reconciliation on Non-GAAP figures
page 30
$0.62
$1.10$1.03
$1.18
$1.49
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
2014 2015 2016 2017 2018
Adjusted Earnings Per Share
ADJUSTED EARNINGS PER SHARE (DILUTED)*
• Our value creation strategy is generating double digit Adjusted EPS growth
24% CAGR
* See Appendix for a reconciliation on Non-GAAP figures
page 31
TOTAL DEBT($ in millions)
NET DEBT($ in millions)
NET DEBT / ADJUSTED EBITDA*
Capitalization and Liquidity
* See Appendix for a reconciliation on Non-GAAP figures
0.9x 0.7x
0.9x
2.9x 2.8x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
2015 2016 2017 2018 Proforma
LTM Q1
2019*
$157 $142
$152
$186 $202
$0
$50
$100
$150
$200
$250
2015 2016 2017 2018 Proforma
LTM Q1
2019*
ADJUSTED EBITDA*($ in millions)
$214 $270
$230
$619 $642
$0
$175
$350
$525
$700
2015 2016 2017 2018 Q1 2019
$138 $105
$143
$538 $575
$0
$175
$350
$525
$700
2015 2016 2017 2018 Q1 2019
page 32
Capital Allocation for Value Creation
Reinvest in the
Business
Evaluate Leverage
Explore M&A
Opportunities
Return Excess Cash
to Shareowners
CAPITAL DEPLOYMENT PHILOSOPHY
Invest in strategic initiatives with high returns including organic growth opportunities,
innovation, manufacturing productivity and salesforce effectiveness
Utilize excess cash to opportunistically refinance or pay down debt
Optimize cost of capital and target Net Debt / Adjusted EBITDA below 3.0x
Opportunistically evaluate accretive M&A transactions
Returned $30M to shareowners in 2018 via dividends and stock repurchases
• Investing in the business to fuel our value creation strategy while upholding a disciplined approach to
capital allocation
• Maintaining strong liquidity with $254 million available under our revolving credit facility as of March 31, 2019
page 33
Investment Highlights: Who We Are
leading
global provider
of commercial
flooring solutions
most valuable
brand
in the flooring
category
strongest global
sales &
marketing
capabilities
global
manufacturing
footprint and
industry-leading
gross margins
engaged,
customer-centric
culture, focused
on performance
and galvanized
around our
sustainability
mission
AppendixAppendix
page 35
Appendix: Reconciliation of Non-GAAP Figures
($ in millions, except per share amounts)
Q1
2018
Q1
2019
FYE
2017
FYE
2018
Net Sales as Reported (GAAP) $240.6 $297.7 $996.4 $1,179.6
Impact of Changes in Currency - 8.0 - (8.4)
nora Net Sales - (60.1) - (112.6)
Specialty Retail Sales - - (4.7) -
Organic Sales $240.6 $245.6 $991.7 $1,058.6
Gross Profit as Reported (GAAP) $93.6 $115.4 $386.0 $424.4
Purchase Accounting Amortization - 1.9 - 32.1
Adjusted Gross Profit $93.6 $117.3 $386.0 $456.5
SG&A Expenses as Reported (GAAP) $70.6 $99.0 $267.2 $327.5
Transaction Related Expenses - - - (5.3)
Adjusted SG&A Expenses $70.6 $99.0 $267.2 $322.2
Operating Income as Reported (GAAP) $23.0 $16.4 $111.6 $76.4
Purchase Accounting Amortization - 1.9 - 32.1
Transaction Related Expenses - - - 5.3
Restructuring and Asset Impairment Charges - - 7.3 20.5
Adjusted Operating Income $23.0 $18.3 $118.9 $134.3
Net Income as Reported (GAAP) $15.1 $7.1 $53.2 $50.3
Purchase Accounting Amortization (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) - 1.3 - 22.7
Transaction Related Expenses (after tax impact of $2.1m in 2018) - - - 7.4
Tax Act Expense (Benefit) - - 15.2 (6.7)
Restructuring and Asset Impairment Charges (after tax impact of $5.2m in 2018 and $2.6m in 2017) - - 4.7 15.3
Adjusted Net Income $15.1 $8.4 $73.1 $89.0
Diluted EPS as Reported (GAAP) $0.25 $0.12 $0.86 $0.84
Purchase Accounting Amortization (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) - 0.02 - 0.38
Transaction Related Expenses (after tax impact of $2.1m in 2018) - - - 0.12
Tax Act Expense (Benefit) - - 0.25 (0.11)
Restructuring and Asset Impairment Charges (after tax impact of $2.6m in 2017 and $5.2m in 2018) - - 0.08 0.26
Adjusted Diluted EPS $0.25 $0.14 $1.18 $1.49
page 36
Appendix: Reconciliation of Non-GAAP Figures
2014 2015 2016 2017 2018
LTM
Q1 2019
Q1
2018
Q1
2019
Diluted EPS as Reported (GAAP) $0.37 $1.10 $0.83 $0.86 $0.84 $0.71 $0.25 $0.12
Purchase Accounting (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) - - - - 0.38 0.40 - 0.02
Transaction Related Expenses (after tax impact of $2.1m in 2018) - - - - 0.12 0.12 - -
Tax Act Expense (Benefit) - - - 0.25 (0.11) (0.11) - -
Restructuring and Asset Impairment Charges* 0.13 - 0.20 0.08 0.26 0.26 - -
Debt Retirement Expenses (net of tax impact of $0.6m in 2013 and $4.2m in 2014) 0.12 - - - - - - -
Australia Fire Impact (net of tax impact of $0.2m in 2012 and $3.6m in 2013) - - - - - - - -
Tax Dispute Resolution - - - - - - - -
Adjusted Diluted EPS $0.62 $1.10 $1.03 $1.18 $1.49 $1.38 $0.25 $0.14
* Restructuring and Asset Impairment Charges are net of tax impact of $4.9m in 2012, $3.6m in 2014, $6.7m in 2016, and $2.6m in 2017 and $5.2m in 2018
($ in millions) 2014 2015 2016 2017 2018 Q1 2019
Total Debt $263 $214 $270 $230 $619 $642
Less: Cash (55) (76) (166) (87) (81) (67)
Net Debt $208 $138 $105 $143 $538 $575
($ in millions) 2014 2015 2016 2017 2018
LTM
Q1 2019
Q1
2018
Q1
2019
Net Income as Reported (GAAP) $25 $72 $54 $53 $50 $42 $15 $7
Taxes on Income 11 33 25 47 5 1 5 2
Transaction Related Other Expense - - - - 4 4 - -
Interest Expense 21 6 6 7 15 20 2 7
Depreciation & Amortization 31 31 31 30 39 42 9 11
Stock Compensation Amortization 4 14 6 7 15 14 3 3
Transaction Related Expenses - - - - 5 5 - -
Purchase Accounting Amortization - - - - 32 34 - 2
Restructuring and Asset Impairment Charges 12 - 20 7 21 21 - -
Debt Retirement Expenses 12 - - - - - - -
Adjusted EBITDA $116 $157 $142 $152 $186 $183 $34 $31
Total Debt / Net Income 10.6x 2.9x 5.0x 4.3x 12.3x
Net Debt / Adjusted EBITDA 1.8x 0.9x 0.7x 0.9x 2.9x
($ in millions)
For the
Period
1/1/2018 -
8/7/2018
For the
Period
4/1/2018 -
8/7/2018
Proforma nora Net Income prior to Interface Ownership $2 $4
Proforma nora taxes on income prior to Interface Ownership (0) (1)
Proforma nora interest expense prior to Interface Ownership 7 4
Proforma nora Depreciation and Amortization prior to Interface Ownership 8 6
Proforma nora other non-recurring charges prior to Interface Ownership 7 6
Proforma nora Adjusted Earnings before Taxes, Interest, Depreciation and Amortization $24 $19
Proforma Interface + nora (pre-acquisition) Adjusted Earnings before Taxes, Interest,
Depreciation and Amortization (AEBITDA)
$210 $202
Total Debt / Net Income 12.3x 15.2x
Net Debt / Proforma AEBITDA 2.6x 2.8x
page 37
Appendix: Reconciliation of Non-GAAP Figures
($ in millions) 2018
Net Sales as Reported (GAAP) $1,180
Proforma nora Net Sales prior to Interface Ownership (1/1/2018 - 8/7/2018) 166
Proforma 2018 Interface + nora (pre-acquisition) Net Sales $1,345
($ in millions) 2018
Operating Income as Reported (GAAP) $76
Purchase Accounting 32
Transaction Related Expenses 5
Restructuring and Asset Impairment Charges 21
Adjusted Operating Income $134
Adjusted Tax Rate 24%
Net Operating Profit After Tax (NOPAT) $102
($ in millions) 2017 2018 Average
Shareholder's Equity 330 355 342
Total Debt 230 619 424
Cash (87) (81) (84)
Invested Capital $473 $892 $683
Return on Invested Capital (ROIC) = NOPAT / Average Invested Capital 15%