Tarkett Releases Results for First Half of 2017

Paris, France, July 27, 2017-Tarkett reports good operating results in H1 2017: organic growth at 3.0%; adjusted EBITDA margin stable at 11.8%; net sales up 5.1% year‐on‐year at €1,364m, including organic growth of 3.0%.

Good organic growth in the CIS, APAC & Latin America (+7.2%), Sports (+5.3%) and EMEA (+4.2%) segments
Adjusted EBITDA(2) up 5.9% at €160m and EBITDA margin at 11.8% (versus 11.7% in H1 2016)
Net profit(3) of ‐€98m, penalized by a €150m provision in relation to the proceedings in progress with the French Competition Authority
Significant improvement in the net debt/adjusted EBITDA ratio: 1.3x versus 1.8x at end‐June 2016

Commenting on these results, Michel Giannuzzi, CEO, stated, “After a solid start to the year, the increase in sales picked up pace in Q2. We were able to capitalize on the economic recovery in CIS countries, where growth gained traction and profitability improved sharply. High raw material prices weighed on our H1 results. We are confident that our markets will hold firm over the rest of the year.”

In North America, H1 2017 sales were down 1.6% on H1 2016 at constant scope of consolidation and exchange rates. Sales were penalized by a strong performance in the comparative H1 2016 period, which had been boosted by one‐off items and especially large‐scale commercial carpet projects and the impact of stock‐building by a new customer in the resilient flooring segment. The commercial carpet business continued to show certain weakness in the office and healthcare sectors. Luxury vinyl tiles(LVT) also kept delivering robust growth in North America and remain an important growth driver for Tarkett. Reported sales edged up 0.4% on the back of gains in the US dollar against the euro. The adjusted EBITDA margin retreated 12.5% from 14.4% in H1 2016, affected by higher raw material prices and a slight drop in sales volumes. The selling price increases announced in Q2 2017 will have a gradual impact asfrom the second part of the year.

Net Sales by Segment H1 2017 H1 2016 % Change(1) o/w OG(2)

Europe, Middle East, Africa 481.3 471.6 +2.1% +4.2%

North America 412.7 411.1 +0.4% -1.6%

CIS, APAC & Latin America 275.7 234.9 +17.4% +7.2%

Sports 194.3 180.5 +7.6% +5.3%

Total Group 1,364.0 1,298.1 +5.1% +3.0%

(1) % Change: reflects reported growth only.

(2) Organic Growth: removes pricing variances.

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