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Investor Presentation- November 2011
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Forward-looking Statements
Certain of the statements in this presentationmay include forward-looking statements as
Reform Act of 1995, which are subject tov ri ri k n n r in i in l in
not limited to, those set forth in our pressreleases and our periodic filings with the
Securities & Exchange Commission.
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Mohawk Hi hli htsWorlds largest flooring manufacturer
Total flooring product offering
Pervasive sales coverage
Vertically integrated manufacturing
Expanding international presence
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Leader in Floorcoverin
(1)
Sales of $5.3 billion
EBITDA of $631 million
Leading Market Positions
Carpet
eram c
Laminate
Rugs and Mats
Stone Flooring and Countertops
Wood
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( ) exc u es one- me c arges
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Product Mix Across Floorin Industr
2002 U.S. Industry 2010 U.S. Industry
$17 Billion$20 Billion
Carpets & Carpets &Ru s 55%
Hardwood10%
Hardwood9%
Ceramic
Ceramic11%
Laminate
12%
Laminate5%
30% of market 32% of market
Stone 5%Rubber 1%Vinyl 8%
Rubber 1%Vinyl 12%
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Sources: Floor Covering Weekly
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Floor Coverin Sales b End-Use Market
Residential. .
$20 Billion Retail dealers
Builder
Multi-family
Home centers
. .
$17 Billion
Residential
Specialty Retail
Commercial
ResidentialReplacement
48%
ResidentialNew
Construction25%
ResidentialReplacement
56%
NewConstruction
8%
Educational
Retail
Health care
Commercial27%
Commercial36%
Institutional
Mainstreet
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Source: Floor Covering Weekly
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2010 U.S. Floorin ManufacturersCarpet and Rugs Total Flooring
Dollars In Billions Dollars % Total Dollars % Total
Mohawk $2.4 25% $3.5 22%
Shaw $3.0 31% $3.3 21%
Armstrong $1.0 6%
Beaulieu $0.9 9% $0.9 6%
Tarkett $0.6 4%
Mannington $0.2 3% $0.6 3%
Interface $0.5 5% $0.5 3%
Pfleiderer $0.3 2%
Marazzi $0.2 1%
The Dixie Group $0.2 2% $0.2 1%
Total Top Ten $7.3 75% $11.1 69%
7Source: Floor Focus
Total Industry $9.7 $16.0
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Floorcoverin Retailers
2007 U.S. Industry 2010 U.S. Industry
Contractor
SpecialityStores57%
on rac or14%
SpecialityStores
HomeHome
Centersenters26%
Other3%
30%
Other3%
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Sources: Floor Covering Weekly, and Catalina note 2007 amounts restated per Census in 2010
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International Growth OpportunitiesSquare feet in Mill. 2005 2006 2007 2008 2009
China
Tile 33,100 40,400 47,600 54,700 59,200
RussiaLaminate 395 409 527 656 592
Tile 1,732 1,765 1,861 1,894 1,754
9Sources: Ceramic World, Frost & Sullivan, China Construction Ceramics Association and management estimates
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Best in Class Distribution Network
State of the art lo istics s stem
300 distribution points, 700 trucks
Nearly 1,500 sales representatives in N.A.
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Growth Strate
Added hard
surface salesforce with
Acquired Unilin
leading laminateSanfi
JV
investment in
1992-2000
Focus on
sourced
products
Acquired
U.S. & European
position
Acquired2000
2002
2005
2007Chinese ceramic
manufacturer
2010
acquisitions a -t e argestU.S ceramicmanufacturer
Flooringleading wood
position
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Environmental Leadershi Over 3 Billion lbs. of material diverted from landfills annually
Process almost 20% of all plastic bottles recycled in N. A.
23 Million lbs. of tires recycled annually into door mats Nearly 50% water reduction per yard of carpet since 2005
Bio-based carpet fiber from cornExclusive SmartStrand
97% of our ceramic tile have some level of recycled content
Featured in July 2011 Fortune magazine
Newsweekranked Mohawk in the top consumer products group
Recipient of Floor Covering Weeklys2011 Award for
Environmental Leadership
Received a GOLD award for innovation in fiber technology and
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sustainability at NeoCon for SmartStrand
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Innovative Products and Global Ex ansion
SmartStrand Sorona proprietary fiber Click furniture
Distressed antique wood surface
Geographic Expansion
Russia China
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World Class S stems
inventory management system
Sophisticated transportationmanagement
Integrated warehousemanagement
Next generation supply chain
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Ex andin Customer TechnoloMohawkNet.com
Electronic invoicing and payment program
Check order history, product availability and information
Track product deliveries
MohawkToday.com
Marketin su ort for retailers and sales team
Advertising materials for print, online and television
Downloadable photography and literature
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,
Available on computer or tablet for easy access
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Positive Industr Outlook
an econom c recovery w mprove us ness
Favorable long-term household growth
onsumer everage ra o e ow year average
Housing stock aging average 30+ years
Pent-up demand from postponed residential remodeling Flooring remodeling 2/3 of long-term market
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Mohawk Se ment: Car et & Ru s
Leading market share in all channels
roa est array o oor ng pro ucts
Best known brands Strong aligned dealer network
Low cost integrated manufacturer
Best in class national distribution
Strong environmental position
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Mohawk Se ment: BrandsWorld Class Brands
Mohawk
Mohawk Floorscapes
Karastan
Durkan
Mohawk Color Center Lees
Bigelow
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Mohawk Se ment: Event MarketinConsumer events build brand awareness
,
Sunset Celebration Weekend 12,000 attendees Real Simple 6,000 attendees
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Mohawk Segment: Leading Retail Programs
3 customer options for maximizing retail segment
Mohawk Authorized retailers (a la carte)
Mohawk Aligned (full service) Karastan (full service, high-end)
Retail Training & Consultation
Com lete floor coverin roduct offerin
Advertising & in-store promotional support
Differentiated concept maximizes performance
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Mohawk Se ment: Innovation in Multifamil
Launched SmartStrand Tri-Star Specifically engineered for apartments
New fiber system
High durability
Competitive price alternative to nylon
Provides superior lifecycle value
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Mohawk Segment:
Home Division
Sells All Top Retailers Coordinated Offerings
Bath Rugs Mats Area Rugs
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Dal-Tile Se ment: Ceramic & StoneCompetitive Advantages
Largest U.S. ceramic tile and stonecompany
Market share nearly 5x closest competitor
Broad product line satisfies all channelsan pr ce po n s
Leading ceramic brands
Recognized as world wide ceramic
leaderexpanding international presence
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Dal-Tile Segment:
Brands Servin All Channels
Residential flooring dealer focus
216 com an -owned sales service centers
27 stone centers
8 design galleries
Home centers
Independent distributor focus 128 locations
16 company sales centers
Home centers
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Dal-Tile Segment:
U.S. Ceramic Tile Industr 2010
Mohawk/DT
Imports*/Other
43%
StonePeak/Fiandre
Marazzi 8%Florida
U.S./Laufen 2%
25*Imports of domestic manufacturers included in company numbers, not import numbers
Interceramic3%Crossville 5%Florim 2%
e anar a2%
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Unilin Segment: Laminate & Wood
Geographical Revenue Split Product Revenue Split
Non-U.S.77%
Flooring67%
U.S. 23%
Non-Flooring33%
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Note: Flooring includes Laminate and Wood Flooring and related products
and Non-Flooring includes Roofing Structures and Other Boards
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Unilin Segment:
Floorin Advanta es
Laminate leader in mid to high end
Strong consumer brand recognition in Europe and U.S.
Complete laminate and pre-finished wood offering
Undisputed innovation leader
Valuable intellectual property
Vertically integrated low cost manufacturer
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Unilin Segment:
Non-Floorin Offerin s Flax, Specialty MDF, and Chipboards
- Furniture and specialty construction
Insulation
Melamine-faced boards and panels
- Furniture, DIY and construction industries
Custom Roofing Panels
- Insulated roof panels and hinged roofs
Insulation Panels
n n oo ng ane s ra t ona oo
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Strate for Future Growth
eve op ta ent to r ve nnovat on
Expand into new high-growth markets
Continuous optimization of resources
Upgrade and develop systems to improve
execution and customer su ort
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Mohawk Industries, Inc.
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Revenues and Cash Flow from O erations
Revenues Cash Flow from O erations
$1,000
$785
$880
$576
$672
$600
$700
$800
$900$7,906$7,586
$6,867
$5,465 $5,319$6,000
$7,000
$8,000
,
$320
20 0
$300
$400
$500
2,000
$3,000
$4,000
$5,000
$0
$100
2006 2007 2008 2009 2010$0
$1,000
2006 2007 2008 2009 2010
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Dollars in Millions, excluding one-time charges
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Earnin s Summar(Ex-charges 1)
Dollars in Millions except EPS
Years Ended Dec. 31 2010 2009 2008 2007 2006
Net Sales $5,319 $5,465 $6,867 $7,586 $7,906% Change (3%) (20%) (9%) (4%) 19%
ross ro , , , , ,
% Gross Margin 27% 27% 26% 28% 28%
Operating Income $327 $301 $493 $764 $839% Oper. Margin 6% 6% 7% 10% 11%
Net Earnings $172 $154 $251 $438 $456
% Change 12% (39%) (43%) (4%) 18%
Diluted EarningsPer Share
$2.51 $2.24 $3.67 $6.39 $6.70
% Change 12% (39%) (43%) (5%) 17%
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(1) 2010, 2009, 2008 and 2007 excludes impairment and unusual charges
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Results b Se ment (Ex-charges 1)
2010 2009 2008 2007 2006
Mohawk Segment
Dollars in Millions
Sales $2,845 $2,978 $3,669 $4,206 $4,742
% Change (4%) (19%) (13%) (11%) 1%
Operating Income $133 $98 $127 $263 $387
Dal-Tile Segment
Sales $1,367 $1,427 $1,815 $1,938 $1,942
% Growth (4%) (21%) (6%) -- 12%
Margin 7% 7% 12% 13% 14%
Unilin Segment
Sales $1,188 $1,128 $1,465 $1,488 $1,237
Operating Income $116 $121 $172 $272 $214
Margin 10% 11% 12% 18% 17%
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(1) 2010, 2009, 2008 and 2007 excludes impairment and unusual charges
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uarterl Earnin s Summar(Ex-charges 1)
Dollars in Millions except EPS
r uar er
Net Sales $1,443 $1,310 $1,383
% Change 10% (5%) (22%)
Operating Income $94 $89 $84
per. arg n
Diluted EarningsPer Share
$0.83 $0.74 $0.64
% Change 12% (16%) (44%)
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( ) , an sa es, opera ng ncome an u e earn ngs per s are excu es unusua c arges
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Liquidity and Capital Structure
Over $790M available : Debt amortizes:
$800
$900
Third Quarter 2011
$500
$600
$700
$900
$270
$200
$300
$400
$400
$0
$100
Credit Facility Cash Balance
Used Unused
2011 2012 2013 2014 2015 2016
Bond Revolver
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Net Debt to Capital
32.0%
Strong cash generation30.0%
31.0%
Effective working
capital management28.0%
29.0%
Leverage near
historically low levels26.0%
27.0%
25.0%3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 Q3 11
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Mohawk Industries, Inc.
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