Cradle to Cradle® business case

Tuesday March 24th 2015

during the

Comeniusproject “sustainability” of

History

Key milestones in the history of Desso:

1993 Desso was acquired by DLW (Deutsche Linoleum Werke) and removed

from the Amsterdam stock exchange.

1998 DLW/Desso was taken over by Armstrong World Industries Inc.

(NYSE:AWI).

2007 In April, Desso became independent again after the acquisition by NPM

Capital, a Dutch investment company.

2010 Desso Group acquired the profitable activities of Enia Carpet NL Holding

BV in February 2010.

2011 Since April 2011, Desso shares are held by Bencis Capital Partners

(majority shareholder) and the current management board.

2014 In February 2014, Desso strengthens its US market position through an

agreement with The Dixie Group.

2015 Desso becomes part of Tarkett Group

Corporate strategy

Custom made wall carpet

Stedelijk Museum Amsterdam, the Netherlands

1. Operational excellence

2. Innovation

Creativity

Functionality

Cradle to Cradle®

3. Expansion

Geographic expansion

Channel expansion

4. Communications

Desso Group

2012 figures - % of total sales

Business Overview

Carpets 90%

Business Carpets 65%

Hospitality, Marine & Aviation 12%

Consumer Carpets 13%

Sports Systems 10%

2012 figures (end December) - % of total sales

Desso focuses on superior floor design and Cradle to Cradle, in providing high quality carpet tiles and

broadloom.

Our commercial product offering, business carpets, represents more than half of total sales and can be found

in offices, banks, retail units, public buildings, schools, universities and care centers.

Carpet Tiles 94%

Broadloom 6%

Business Carpets

2012 figures (ytd October) - % of total sales

Hospitality

Desso Hospitality has earned a global

reputation for supplying the world’s finest

hotels with luxury woven and custom made

carpet solutions for more than 75 years.

Whether 5 Star, mid-scale, or economy, we are

committed to developing our customer

relationships, working in close partnership with

designers, owners, developers, and project

managers.

Design, comfort and functionality are key

elements for our products.

Desso can provide hospitality carpeting

solutions to satisfy a wide range of budgets

and applications, spanning from ballrooms to

lobbies, and guest rooms to corridors

Waldorf Astoria Berlin, Germany

Custom made Axminster

Marine

For over two decades, Desso has been enjoying a global reputation for our custom made floor coverings as

well as our stock selection, which we supply to cruise liners and ferry operators worldwide.

At Desso, we are committed to meeting its exact requirements in a direct and open manner, while we work

continuously on innovative solutions.

Desso offers both woven and tufted wall-to-wall carpets and carpet tiles for cabins, providing a complete

package for the floor covering of all areas of the vessel.

Custom made Axminster

Aviation

Desso has more than 20 years of experience in creating aviation carpeting and looks back on a successful

history of being a true partner to the leading airframe manufacturers and to numerous airlines throughout the

world.

With our focus on quality, flexibility and expert carpet design we’ve grown to a top three position in the

aviation market.

With a thorough knowledge of the market, we translate its values and inspiration into commercial and

practical solutions with truly innovative designs.

Wilton Aero 850

Consumer carpets

Desso Consumer Carpets is represented by three

strong brands: DESSO, Parade and Bonaparte, all with

a rich history in designing and manufacturing high-end

consumer carpets.

The DESSO collection is inspired by the latest

trends in structures, materials and colours seen in

interior design.

Parade is characterised by its rich and luxurious

products which meet today’s need for warmth and

comfort.

Bonaparte, with its colourful collection, represents

an expressive lifestyle that varies from the trendy

to the more romantic.

For more information, please visit our websites:

www.dessohome.nl

www.paradefloorfashion.nl

www.bonapartetapijt.nl

Sports Systems

Desso Sports Systems has more than 30 years

experience in the sports surface market,

supplying artificial grass and hybrid natural

grass systems

The product portfolio also includes DESSO

GrassMaster®, a sports field of 100% natural

grass reinforced with Desso synthetic grass

fibres.

Today, Desso Sports Systems is one of the

world‘s largest manufacturers with over 50

million square metres of installed sport pitches

for football, hockey, tennis, American football,

rugby and multi-purpose use.Wembley Stadium London, UK

DESSO GrassMaster®

Desso Group

Employees: 1000

Carpet tiles: 9.000.000 m2• Tufted products 90%

• Fibre bonded products 10%

Broadloom: 2.500.000 m2

Artificial grass: 1.800.000 m2

Woven carpets: 750.000 m2

According to the Cradle to Cradle® principles, products are made from pure

components that are easy to disassemble, so that new products can be made

from them (= up-cycling) in both the biosphere and the technosphere.

Michael Braungart

William McDonough

What is Cradle to Cradle®?

Desso has been making a difference with eco-

efficiency for years. These are examples of what

we do in the area of eco-efficiency:

Energy consumption

32% reduction in energy consumption per

carpet tile produced from 1998-2013 in

Waalwijk, the Netherlands.

Recycling

100% recycling of pure textile manufacturing

waste at Desso’s production plants.

In 2013, 98% of all packaging materials were

recycled

Eco-efficiency

DESSO AirMaster® 9502, 9504

1. Positive footprint

2. Improve quality of life and environment

3. Re-utilize all materials used in the product.

Design criteria: easy disassembly

4. Use post-customer materials as raw material in

the product

5. All raw materials should be 100% safe for

humans and environment

6. Use renewable energy in all stages of the cycle

Eco-effectiveness

It’s all about Eco-Effectiveness

Strategic plansEnergy

2020 100% durable energy

Biomass

Wind energy

Solar energy

Start in Waalwijk JV with Host/ENECO

Biodiversity

Increase biodiversity in industrial

environment.

First “green roof” done

Focus on certain species

Solar panels

Prototype with paper yarn

Prototype with bamboo yarn

Prototype from jute

Technical cycle

OPTIMAL

OPTIMIZING

TOLERABLE

IDENTIFY THE BEST: ABC-X CATEGORIZATION

NOT ACCEPTABLE

NOT CHARACTERIZED

PROGRESS OF QUALITY FROM CRADLE TO CRADLE WITH

TIME

Clients and

suppliers are

regarded as

partners to reach

quality.

ECO-EFFECTIVENESS

Create ‘Passive Positive List for

existing products

Analysis of all raw materials

Use only positively defined materials

Phase out non-acceptable raw

materials

No need to be perfect from day one!

Traditional carpet tile

Handmade carpet tile with Polyolefine backing

Desso Cradle to cradle carpet tile with Polyolefine backing

Optimal situation

Over 90% of Desso’s carpet tiles are

Cradle to Cradle® certified

Future objective

Future objective

Future objective

Refinity

Refinity

DESSO Refinity®

Take Back™

Cradle to Cradle® Roadmap to 2020

Positively defined = is

based on current used

raw materials and hazard

assessment (calculated

by mass)

C2C Products certification

= based on sales volume

in m2 (2012 figure is

based on actual sales

volume)

All Cradle to Cradle®

objectives as mentioned

in the Roadmap are

subject to commercial and

technical viability.

© July 2012 DESSO®

Commercial carpet tiles

Mckinsey report

Arsenal FC

Microsoft

Report by the Ellen MacArthur Foundation

McKinsey & Company worked on the case examples

and analytics

Launched at the World Economic Forum in Davos

The report claims that businesses can save up to $630

billion per year in the EU by moving to the circular

economy

The report cites Desso as one of the pioneering

companies that is leading the charge to the new world

Download via: http://www.ellenmacarthurfoundation.org/

The Circular Economy

Arsenal FC

Closing the loop: C2C chalk in

carpet tile backing

True example of the Circular Economy

powered by C2C

New circular economy material stream of up to 20,000

tonnes of chalk from local water companies

Positively defined recycled content – material health

is key!

Collaboration and innovation has made this

development possible

Carpet Lease

Carpet Lease is launched together with global financial solutions partner DLL.

The solution enables you to free up cash and contribute to the circular economy at the

same time.

It also allows companies to concentrate on the core business and outsource the flooring

to the experts. By leasing the carpet, you will:

1. Support the environment and the circular economic model

2. Gain financial flexibility

3. Contribute to employee health and wellbeing

4. Enjoy hassle-free flooring

Was it a good idea...?

Generates publicity

Generates publicity

Cradle to Cradle Café

Different sales advisors

Hilde Roothart

The artist Petra Blaisse

Royal visit

Crowning of the new King

Our vision

How to make the floor work for our health and wellbeing?

We want to be the world leader in making environmentally responsible

flooring products.

Today, most people spend 90% of their time indoors. We believe it is our

responsibility to develop products that contribute to a healthier living and

working space.

At Desso, we say ‘The Floor is Yours’ to underline the fact that we maintain

a relentless focus on our customers at all times.

The challenge of poor air quality

Aspiring to build the ‘Great Indoors’ can make a huge

difference to people’s health and wellbeing as well as work

efficiency and creativity.

One key issue is poor air quality.

1) WHO, 7 million premature deaths annually linked

to air pollution, 25 March 2014, News Release.

2) Most EU city dwellers suffer bad air days’,

Euractiv.com, 24 Sept,

2012. http://www.euractiv.com/sustainability/third

-eu-city-dwellers-suffer-ba-news-514957

3) William J. Fisk and Arthur H. Rosenfeld of the

Lawrence Berkeley National Laboratory in

Berkeley in California, US.

AIRMASTER®

Functionality

The open product structure ensures that dust is easily released during cleaning, to ensure maximum regeneration of the carpet’s

filtering functionality.

Very fine dust is captured and retained

in the fine yarns of the DESSO

AirFiltersTM.

Coarser fine dust is captured in

the thicker yarns of the DESSO

DustCollectorsTM.

The unique structure of DESSO

AirMaster® prevents the dust from

becoming airborne again.

How does it work?Enlarged profile of DESSO AirMaster®

Fine dust (< 2,5 μm)

Fine dust (> 10 μm)

What is Particulate Matter?

PM10 Inhalable particles, with an aerodynamic diameter of up to 10 μm (all smaller particles are included).

Particles of this size cause health problems, because these are the particles that generally pass through the throat and enter

the lungs.

PM2.5 Fine particles with an aerodynamic diameter smaller than 2.5 μm. Particles of this size or smaller can have effects

to the respiratory and cardiovascular system.

DESSO AirMaster® is 8 times more effective in

capturing and retaining fine dust than hard flooring solutions (PM10)*

DESSO AirMaster® is 4 times more effective in

capturing and retaining fine dust than standard carpet solutions (PM10)**

* Based on tests performed by GUI, with DESSO AirMaster® versus standard PVC hardfloor.

** Based on tests performed by GUI, with DESSO AirMaster® versus standard structured loop pile carpet.

1 Particulate matter enters our respiratory (lung) system through the nose and throat

2-3 The larger particulate matter is eliminated through coughing, sneezing and

swallowing

4 Smaller particulate matter can penetrate deep into the lungs. It can travel all the

way to the alveoli, causing lung and heart problems and delivering harmful

chemicals to the blood system.

How

particulate

matter enters

your body

Scientific research in the field of indoor air quality is done on this topic by a variety of

scientists and institutions.

The World Health Organization stated clear guidelines on fine dust concentrations in

indoor air.

Air quality is one of the areas in which the European Union has been most active.

* Source: World Health Organization Air quality guidelines for particulate matter, global update 2005.

Regulation

is established

DESSO SoundMaster® offers an impact sound

insulation value (ΔLw) up to +15 dB above the

standard value*, thereby setting a new industry standard

in carpet performance. Carpet in general reduces the

impact of sound by between 20 and 30 decibel.**

DESSO SoundMaster® achieves an improvement in

sound absorption performance up to +0.15 (αw)*,

equivalent to up to +100% improvement in comparison

to standard carpet designs (αw value between 0.15 and

0.20).***

Expertly designed to

create quiet spaces

* Tests performed at SWA (Schall- und Wämemessstelle Aachen GmbH) – Institut fuer

schalltechnische und wärmetechnische Prüfungen-Beratung-Planung

**To compare: other flooring solutions (non-carpet) generally give a value between 5 and 10 dB.

***To compare: other flooring solutions (non-carpet) generally give a value between 0.05 and 0.10.

External and independent tests have been performed to determine the effect of the DESSO Light Reflection Master®.

The use of DESSO Light Reflection Master® can increase the brightness of a room by up to 14%.*

As a result lighting costs can be reduced by up to 10%*, while cutting down on the quantity of energy related CO2

emissions.

European office buildings use 50% of their total electricity consumption for lighting.

The effect of DESSO

Light Reflection

Master®

* Data based on calculations made with DIALux software, based on closed cell office without furniture and without windows. The results depend on the size of the room, the height of the ceiling, the

amount of light coming in from outside and the general nature of the surroundings.

Design CenterTM

Arsenal FC

Desso’s new Design CenterTM to be launched in

May 2014.

Based at our HQ in Waalwijk, the Netherlands.

The Design CenterTM is custom-built to further

stimulate innovation and partnerships with our

customers.

It will play a key role in the continued

development of our innovation strategy.

Luminous Carpets™

Luminous Carpets™

Technically :

Second half of 2014 – Desso carpet tile products will

contain on average more than 50% (positively

defined) recycled content in line with C2C principles ;

Financially :Increased profitability of Desso in general and more

specific for the Carpets division (Ebitda from 3% in

2006 to more than 10% in LE 2014)

Proving that circularity works...

Desso, part of

Best result so far…....

A Tarkett Company

For more information, please contact us or visit our website: www.desso.com

Thank you!

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