Hospital – UK

MANUFACTURING

EXCELLENCE FOR

RESOURCE

EFFICIENCY

Christophe D’Amico

Operations Director

November2015

March 3rd, 2015

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Agenda

Tarkett Group presentation

Manufacturing excellence and Environmental policy at Tarkett

Tarkett GDL: the case for resource efficiency

Energy efficiency

Recycling

Conclusion

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Tarkett Group presentation

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1.3 million

square meters

of flooring

sold each day

Sales in more than

100 countries

Net Sales*:

2.4 billion euros

EBITDA*:

275 million euros

12,000employees

34Industrial sites

*Net sales 2014 ; Adjusted EBITDA 2014: Adjustments include expenses related to restructuring, acquisitions and certain other non-recurring items.

Global Leader in Innovative Solutions for Flooring and Sports Surfaces

2014 Figures

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A broad product portfolio for integrated solutions

Vinyl Linoleum Wood Laminate

Rubber Carpet Artificial Turf Tracks

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Market expertise for all end-use segments: Residential (40%) and Commercial (60%)

Retail & Hospitality

HealthcareHousing

Offices Sports

Education

80% Renovation - 20% New construction

2014 Figures

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Manufacturing excellence and Environmental policy at

Tarkett

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Proximity to

client matching

local demands

& norms

Optimised

transportation

cost & import

taxes

Better supply

chain lead

time & flexibility

34Industrial Sites

A worldwide

operational

excellence

program

Achieving best-in-class industrial and logistic footprint

2014 Figures

– WCM is a continuous improvement program based on TPM and LEAN philosophy and tools

– Launched in 2009 in Tarkett pilot plant in Sweden, it has been since rolled out to all production sites in Europe, Eastern Countries and North America.

– A central experts team supports its implementation by local WCM managers and pillars leaders

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From the Historical Linear Economy…

…to a profitable circular economy model

Produire

UtiliserRecycler

Tarkett uses a systematic

approach and tool to

perform its transition

Tarkett Invests and Innovates for Sustainable Growth

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Achieving resource efficiency through Manufacturing excellence

Integrated sustainability :

Identify problems to be addressed

Priorize based on Safety, Environment, Service, Quality and Productivity criteria

Detect, Observe, Understand how they are created, how much they are.

Analyze why and choose relevant WCM tool

Implement solutions with rigor

Check results and efficiency

Standardize to ensure sustainability and transverse lessons learnt

WCM way appliesto Environment as the others pillars

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Objectives for the Environment

Pillars Initiatives 2020 objectives KPI

The responsible use of natural and non-renewable resources in our operations

Reduce usage of fresh and potable water

100% of our manufacturing sites haves implemented closed-loop water circuits

Water consumption

Decrease energy consumption and greenhouse gas emissions

20% reduction of GHG emissions against a 2010 baseline

Energy use

CO2 emission

All waste and productsat end-of-use enter intoa biological or technical cycle

Ensure that all manufacturing waste enter into a biological or technical cycle

0 industrial waste going to landfill

Internal Recycling (Restart program)

Waste for Landfill Hazardous waste External Recycling

To achieve Tarkett 2020 objectives : group factories use the following indicators

In 2015, objective in Clervaux factory is to achieve 5% improvement of resource efficiency on water and energy usage, waste management

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Optimize energy consumption and develop the use of renewable energies within Tarkett group

Biomass

Solar Wind

Recovery of wood sawdust for heat and energy production (BačkaPalanka, Serbia)

Solar panels installed in Netherlands, Belgium and Italy

Wind turbines installed at Waalwijk, Netherlands (Desso)

Geothermal

Use of underground heat to warm up or cool down the production environment (Narni, Italy)

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Tarkett GDL: The case for

resource efficiency

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Tarkett & GDL

Tarkett GDL in Lentzweiler

Residential European Supply Centre (12 000 m² storage building)

170 000 m² of industrial land

50 000 m² of industrial/logistic building

Multi technology (recycling, calendaring, coating, extruding)

Production running 5 to 6 days, 24 hours

500 Headcount

R&D in Wiltz

Worldwide R&D Centre

3 000 m² of industrial building

Pilots lines of all vinyl production process

70 Headcount

Luxembourg City

2015 JulyWCM Audit Clervaux

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Tarkett GDL: The case for

resource efficiency

Energy efficiency

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Improve energy efficiency

Energy efficiency approach based on 3 axes

Multiskilling, multidisciplinaryKnowledge exchange and global

approach

Technical Detection and elimination of NRJ over-consumption, planning and implementation

Management Establish a management system of NRJ performance Implementation of energy team Learning Factory : 4 Tarkett experts have followed a 52 days training program

Mindset Green Tour to promote importance of energy savings Awareness campaign on energy EMAT (Environment Management Audit Tool) to have dialog with every employee Submit ideas for improvement to eliminate and prevent problems (Quick Kaizen)

Controling Engineering Maintenance Production

HSE

NRJ projects Industrialization

Towards ISO 50001 certification of energymanagement system in December 2015

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Learning Factory

Targets :

Energy cost savings and Environmental Impact (CO2 saving)

Increase the competitiveness of Luxemburgish companies

It’s a project founded in June 2013 by the Luxemburgish government with different

partners

Ice tea production line

Real production equipment

Cost : 2 million €

Energy efficiency approach based on 3 axes

Production same quantity, same

quality, with less energy

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Energy, what we did

1.6 1,5

0

0.5

1

1.5

2

YTD May 2014 YTD May 2015

KPI NRJ kWh/m²

80 K€ energy savedwith insulation of more 600 valves0,38 year payback

8 K€ energy savedthroughcompressed air leaks detection and repair of more 30 leaks points

Resource efficiency contributes to financialperformance and plant profitability in 2014 :

• 5% Energy costs reduction thanks to energysaving projects

• 6000 Kwh electricity saved per year• 1600 tons of CO2 reduction

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Energy, what we will do

2015 JulyWCM Audit Clervaux 19

CO2 emission for energy transformation

Investment

K€ saving (-5% energy invoice)

0

0

200

AdvantageBiomasse NRJ instead gas and electric NRJ (boilers and chillers)

Third party investor to have injection rates for green NRJ

Biomass less expensive than gas and electricity

Biomass comes from local forestry and woodprocessing factories (sawdust and cutting residues)

Biomass : towards greener energy in Clervaux

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Tarkett GDL: The case for

resource efficiency

Recycling

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Recycling, what we did : Reuse program

The recycling of Tarkett plants post industrial waste

to design new products with good materials

Up to 53% of recycled material content in new vinyl flooring

Recycling programs

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Recycling, what we will do

Partnerships with customers, installers, recollection companies and waste management companies

To recycle good materials

ReStart vinyl recycling program for professionals

Creating ReStart recycling programs globally

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Green Tour

Inauguration by Michel Giannuzzi, Tarkett CEO. 10th Sept. 2015

Eco Cluster Lux Innovation. 28th Oct. 2015

Fedil, Learning Factory and Portes du Luxembourg. 1st Oct. 2015

Archigroup. 5th Nov. 2015

Tarkett EMEA division. 17th Nov. 2015

Ronneby Swedish Factory. 15th Oct. 2015

To explain and show the application of Tarkett’s sustainable development strategy in a production facility

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Conclusion

Tarkett Factory in Clervaux has become a model of industrialand environmental performance for the Group

Key succes factors:

Full integration of both industrial and environmentalstrategy at the highest level of management.

Systematic use of robust continuous improvement tools

Involvement of all employees

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Questions ?

Christophe D’Amico

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