GLOBAL VISION LOCAL DESIGN SOLUTIONS FOR ALL 2014 SUSTAINABILITY REPORT

GLOBAL VISION LOCAL DESIGN SOLUTIONS FOR ALL 2014 SUSTAINABILITY REPORT

PROFILE p. 02 Each day, create the utimate experience. WHO IS p. 03 CEO MICHEL GIANNUZZI INTERVIEW p. 05 ENGAGED p. 07 Together at Tarkett, we contribute to meeting key chaenges: Urbanization: How can foors hep meet the chaenges of tomorrow s megacities? The aging popuation: how can we meet the needs of seniors? Resources scarcity: how to better use our resources? RESPONSIBLE p. 21 At Tarkett, we make society s chaenges our mission. SUSTAINABILITY DASHBOARDS p. 31

PROFILE Each day, create the utimate fooring experience Tarkett strives constanty to improve the quaity of ife and we-being of peope, providing high performing and sustainabe fooring and sports surface soutions around the word. Our goba standards for exceence, our innovation capabiities and broad product portfoio, combined with our oca design expertise and understanding of customer needs, enabe us to offer integrated soutions for individuas, companies and the pubic sector. Committed to sustainabiity, our empowered teams are engaged in buiding ong-asting reationships with a of our partners to create the utimate fooring experience. 02 6 MARKET SEGMENTS Housing Heathcare Education Offices Retai & Hospitaity Sports A BALANCED GEOGRAPHICAL PRESENCE (1) 36% EMEA (Europe, Midde East & Africa) 34% North America 30% CIS, Asia-Pacific & Latin America A BALANCED AND ATTRACTIVE CUSTOMER BASE 60% Commercia 40% Residentia 80% Renovation 20% New construction (1) 2014 net saes spit, pro forma for Desso.

WHO IS Tarkett is a goba eader in innovative fooring soutions that generate vaue for customers in a sustainabe way. Our baanced business mode is supported by our decentraized organization and shared commitment to sustainabiity, ethics and exceence. LEADER GLOCAL ENTREPRENEURIAL 03 We offer customers one of the broadest product portfoios in the fooring and sports surface industry, providing integrated and coordinated soutions to professiona and residentia end-users a over the word. We are the goba eader in various segments incuding viny fooring and artificia turf for sports fieds. Our 34 industria sites, 12,000 empoyees and saes in 100+ countries put us in cose contact with customers and suppiers everywhere in the word. Gobay, we drive operationa exceence, commitment to our vaues and innovation, whie empowering oca teams to manufacture and design products and services suited to oca customer needs and trends. Entrepreneurship is part of Tarkett s DNA: continuous fooring innovations and acquisitions have marked our 130-year history. Today we continue to foster an entrepreneuria mindset to eadership, empowering our teams and encouraging agiity and accountabiity in decision-making. 2.4 NET SALES BILLION EUROS (2.6 BILLION US DOLLARS) 34 INDUSTRIAL SITES 12,000 EMPLOYEES 2014 figures DYNAMIC AND RECOGNIZED BRANDS STRATEGIC FLOORING BRANDS, JOHNSONITE, TANDUS CENTIVA, DESSO 2014 ACTIVITY AND SUSTAINABILITY REPORT

A BROAD PRODUCT PORTFOLIO VINYL LINOLEUM CARPET WOOD LAMINATE RUBBER & ACCESSORIES ARTIFICIAL TURF TRACKS SALES IN MORE THAN 100 COUNTRIES AMBITIOUS INNOVATIVE ENGAGED Tarkett has an ambitious growth pan buit on a combination of organic growth through innovation, and externa growth through vaue-creating acquisitions that compement its geographica footprint and product range. We have a history of successfuy integrating our acquisitions. Advanced design and innovation hep us to improve peope s we-being, and create heathy iving environments. Our focus on sustainabe performance and how our fooring is used and recyced resuts in breakthrough innovations that demonstrate our industry eadership. Tarkett is committed to protecting our panet and bringing a sustainabe ifestye to a peope, whie addressing society chaenges: urbanization, popuation aging and resource scarcity. We aim to contribute to peope s we-being and to the deveopment of the circuar economy powered by the Crade to Crade principes, in partnership with externa payers. 04 18 ACQUISITIONS IN THE LAST 7 YEARS 1.3 MILLION SQUARE METERS OF FLOORING SOLD EACH DAY (14 MILLION SQUARE FEET) 76% OF MATERIALS CRADLE TO CRADLE ASSESSED (1) STRATEGIC SPORTS SURFACE BRANDS SPORTS, FIELDTURF, BEYNON, EASYTURF SERVICE BRANDS RESTART, FLOORCRAFT, ACADEMY (1) Percentage of raw materias in voume. Assessment based on Crade to Crade criteria with EPEA support on a products except Sports, Eastern Europe carpet & rugs, outsourced finished goods and packaging.

CEO MICHEL GIANNUZZI INTERVIEW A BALANCED AND FLEXIBLE APPROACH TO PROFITABLE GROWTH A cuture of entrepreneurship has been key to Tarkett s ong-term success. CEO Miche Giannuzzi expains how the company s strong DNA, combined with a baanced business mode and a GoCa approach and a focus on innovation and sustainabiity, ensure that Tarkett is we positioned for the future. 05 What were the highs and ows of 2014? M. G.: Three exampes iustrate how the business moved forward in 2014 in ine with our sustainabe and profitabe growth strategy: externa growth via four acquisitions, incuding the European commercia carpet speciaist Desso (see inset); organic growth through innovation with the aunch of FoorInMotion, a breakthrough service for the heathcare sector and the industry s first connected fooring soution; and exceence thanks to committed, entrepreneuria teams with our interna survey showing we have made progress across a areas, incuding taent management, engagement and shared vision. 2014 was aso marked by the unpredictabe poitica and economic crisis in Ukraine and Russia, where Tarkett has a significant presence. We nevertheess demonstrated our resiience by reacting rapidy in terms of cost structure and pricing, thereby protecting the EBITDA margin despite a fa in the fourth quarter due to a sharp drop in the vaue of the roube. What are the key advantages of Tarkett s business mode? M. G.: Diversification and baance are key to our strength. We have the most baanced geographica exposure in the industry, so we can benefit from growth opportunities in one region to compensate for a sowdown in another. This resiience is reinforced by our 60/40 customer spit between professionas and consumers, and our diversification across markets, from heathcare, education and offices to hospitaity, housing and sports. What roe does sustainabiity pay? M. G.: We beieve we are among the fooring companies that have gone the furthest in terms of integrating sustainabiity into our strategy and vision and sharing this with customers and empoyees. Specificay, our Sustainabiity Strategy based on the 4P Purpose, Peope, Panet and Profit enabes us to positivey contribute to addressing chaenges reated to popuation growth and demographic changes: urbanization, aging popuation and resource scarcity. This is ceary refected in our commitment to deveoping soutions that improve the quaity of indoor air and peope s we-being for exampe, but aso to recycing and reusing our products at their end of use, thus participating in buiding a profitabe circuar economy powered by the Crade to Crade principes. What is Tarkett s DNA and how is it refected in your peope? M. G.: Our empoyees share our core vaues: team spirit, cose reationships with customers, integrity, respect for the environment and a sense of persona responsibiity. They aso share a sense of entrepreneurship, which we activey encourage via our GoCa approach, everaging goba 2014 ACTIVITY AND SUSTAINABILITY REPORT

OUR VISION BEING THE GLOBAL LEADER IN INNOVATIVE SOLUTIONS THAT GENERATE VALUE FOR CUSTOMERS IN A SUSTAINABLE WAY. synergies and acting ocay. When we acquire a company, we ook very carefuy at whether the empoyees and management are compatibe with our own DNA. Our acquisitions over the years have resuted in a famiy of entrepreneurs. What is your outook for 2015 and beyond? M. G.: In 2015 against a voatie, uncertain and compex poitica and macroeconomic backdrop, we wi maintain our resiience by continuing to deveop our entrepreneuria spirit. Looking further ahead, innovation wi pay a major roe: offering custom designs and moduar soutions to respond to customers desire for personaization and versatiity wi be a big trend. Overa, Tarkett s focus on sustainabe innovation and adding vaue for customers positions us we for the future. n Since 2010, one measure of Tarkett s corporate responsibiity is our progress in fufiing the Ten Principes of the United Nations Goba Compact. We are committed to adopting and impementing robust poicies and procedures in the areas of human rights, abor standards, the environment and business ethics to counter corruption around the word. 06 Read our fu 2014 resuts on www.tarkett.com

07 ENGAGED Together at Tarkett, we contribute to meeting key chaenges: urbanization, aging popuation, resource scarcity Heterogeneous Viny, Acczent Evoution. 2014 ACTIVITY AND SUSTAINABILITY REPORT

54% 70% +30% (1) 2014 2050 GROWTH IN POPULATION 2014 (2) 2050 (1) GLOBAL URBAN POPULATION URBANIZATION: HOW CAN FLOORS HELP MEET THE CHALLENGES OF TOMORROW S MEGACITIES? Fooring wi pay a growing roe in promoting we-being and heathy and safe environments, whie assuming an ever more important roe in channeing indoor traffic fows. 08 98% US $40 triion $ OF THE GROWTH IN THE WORLD S POPULATION WILL OCCUR IN CITIES AND IN DEVELOPING AND EMERGING COUNTRIES (1) WILL NEED TO BE INVESTED IN URBAN INFRASTRUCTURES WORLDWIDE BY 2030 (1) 1) Source: Word Business Counci for Sustainabe Deveopment, Vision 2050 report, 2010. 2) Source: United Nations, Word Urbanization Prospects, 2014.

URBANIZATION VIEW FROM AN EXPERT Noteworthy 1. Long negected as a key eement of a buiding, fooring wi assume an increasingy active roe in heping to manage these urban chaenges. 2. New inteigent and connected fooring systems wi provide city authorities with vauabe rea-time information about indoor traffic fows. 09 INSEPARABLE: FUNCTION AND DESIGN by Yama Karim, architect, Studio Libeskind By 2050, approximatey 70% of the goba popuation wi be urban, representing more than 6 biion peope spending 90% of their time indoors (1). This means that cities wi grow to currenty unmatched proportions, imposing new chaenges in terms of smart structures, traffic fows, resource management and peope s heath and we-being. Renowned architect Yama Karim beieves that advanced technoogy wi aow fooring to assume an increasingy important roe in managing tomorrow s urban deveopment chaenges. MEGACITIES, MEGA CHALLENGES Some cities, ike Tokyo and New Dehi are projected to have popuations of neary 40 miion by 2030, posing a huge chaenge: how can we ensure so many peope can ive together safey, we, and heathiy? How wi we baance peope s compex expectations for we-being and services, whie sti respecting the panet? Consumption-reated issues wi take on a greater dimension, making the use of different buiding materias for housing 2014 ACTIVITY AND SUSTAINABILITY REPORT

ENGAGED and pubic instaation indispensabe whie city infrastructures wi have to be reorganized to match increasingy dense traffic fows, not ony on city streets but aso inside buidings and on pubic transport. Today, city panners, architects and designers have to decide whether to integrate offices, stores, restaurants, services and housing, not to mention parks and green areas, into the od fabric of cities, or to buid on the outskirts, in both cases ensuring that there is a good urban mix to hep the city stay aive 24 hours a day. FLOORING TECHNOLOGY MAKING THE DIFFERENCE Long negected as a key eement of buidings, fooring wi assume an increasingy active roe in heping to manage these urban chaenges. New materias and fooring compositions wi not ony foster peope s we-being and comfort through inteigent design and researched use of coor and patterns, but aso provide active features such as anti-sip, sound contro, ight refection, easy maintenance and recycing, which wi contribute to improved and heathier indoor environments. ABOUT OUR EXPERT Yama Karim is the principa at Studio Libeskind in New York, which he joined in 2003. Among other projects, he is currenty managing the Studio s CityLife project in Mian and the Coras compex in Singapore. New inteigent and connected fooring systems wi provide city authorities with vauabe rea time information about indoor traffic fows, aowing them to channe and distribute pedestrian traffic to avoid congestion and safety hazards. Signaing using fooring coors, patterns or engraved messages wi hep peope find their way more easiy, making transit times ess stressfu. Coors and patterns wi aso make the transition from pubic spaces the obby, the ifts, the passageways to private spaces. FLOORS TURNING PLACES INTO LIVING SPACES Fooring is decided upon eary in an architectura project. A decisive factor in our choice is the purpose of the room or space, be it commercia or residentia, with the highest priorities for pubic spaces being durabiity, maintenance, and repaceabiity, as ong as the foor aso ooks nice and is comfortabe. As architects, we must find the right baance between durabiity and comfort, to hep peope reax and spend quaity time in urban spaces. n (1) Source: Word Business Counci for Sustainabe Deveopment. For more information: http://tarkett.com/ 1.3 M WEEKLY GROWTH OF GLOBAL URBAN POPULATION Source: IPCC report. 10

URBANIZATION VIEW FROM A EXPERT LOOKING AND FEELING GOOD by Diane Marte 11 Diane Marte, Vice-President of Environmenta Panning for Tarkett North America, beieves that we shoud provide our customers with sustainabe products that contribute to their we-being. Paramount to this is eco-designing with good materias. Synthetics and substitutes for nature must be made of good materias and be safe for both the environment and for peope. Customers today expect their durabe goods to be sustainabe, and everyone is concerned about the heath and environmenta impacts of their choices. DESIGN FOR HEALTHY AND ENVIRONMENTALLY-FRIENDLY FLOORING There is a strong trend wordwide for consumers and architects to want to know as much as possibe about the products in their homes and offices. As a pioneer of sustainabiity, anticipating reguations and widey appying the Crade to Crade principes, our fooring soutions have Tota Voatie Organic Compounds emissions that are 10 to 100 times ower than the word s strictest standard. We aso decided to use a non-phthaate pasticizer technoogy in a our European and North American production sites, improving environment and air quaity indoors as we as giving us a competitive advantage. A number of our products are asthma & aergy friendy TM certified. Tarkett aims to be transparent and buid a trustworthy reationship with its cients. Thus, it discoses the detaied profie of its products, providing third party-assessed data regarding the composition and environmenta impact of the materias used. To cose the oop, Nyköping Schoo, Sweden, 2014 The goa was to create a schoo with a good acoustic environment so that stress and noise coud be reduced for pupis and empoyees. Thanks to iq Optima Acoustic, the schoo got a fooring soution that heped it achieve a higher cass in sound absorption cass B. The design of the fooring was aso a key chaenge. Much work was done with the patterns and ight. Neutra coors were used in the common spaces whie boder and identity-creating coors went around the teachers working spaces. we aso engage and support our customers in coecting and recycing used fooring, buiding on a sustainabe and profitabe circuar economy mode. DESIGN FOR PERFORMANCE AND QUALITY OF LIFE Fooring for pubic spaces must offer high technica performance, as we as fexibiity, moduarity and customization. The recent Luxury Viny Ties product ranges, as we as carpet ties or rubber ties are good exampes of the compex equation to be soved: easy to maintain and durabe in paces with high pedestrian traffic, quick and easy to insta and repace with very itte disruption, easy soutions to keep pubic spaces ooking new, trendy and acousticay comfortabe. n 2014 ACTIVITY AND SUSTAINABILITY REPORT

ENGAGED 6.9 bn 9 bn 8% 16 % 2010 2050 WORLD POPULATION 2010 2050 WORLD POPULATION OVER 65 YEARS OLD THE AGING POPULATION: HOW CAN WE MEET THE NEEDS OF SENIORS? The number of seniors is on the rise: innovative fooring soutions can hep to maintain their heath, we-being and independence. 12 12% 25% +40% 2010 2050 OLD-AGE DEPENDENCY RATIO (1) (WORLD POPULATION) 2000 2050 MEDICAL COSTS ASSOCIATED WITH AGING POPULATIONS (1) The od-age dependency ratio is the ratio of the popuation aged 65 years or over to the popuation aged 15-64. They are presented as number of dependents per 100 persons of working age (15-64). Source: Popuation Division of the Department of Economic and Socia Affairs of the United Nations Secretariathttp://esa.un.org/wpp/unpp/pane_indicators.htm

AGING POPULATION VIEW FROM AN EXPERT Noteworthy 1. An increasingy aging popuation impies rising costs for governments around the word. 2. Heping oder peope stay autonomous improves quaity of ife and optimizes budgets. 3. Technica innovations can form part of the soution. 13 MEETING THE AGING POPULATION CHALLENGE by Frédéric Serrière, Socioogist In the next 40 years, the number of seniors is expected to doube wordwide. Socioogist Frédéric Serrière expains the impications for pubic poicy and budgets, and the roe of innovation. The aging of the word popuation is one of the most pressing issues of our time. Increased ongevity and decining fertiity has resuted in a growing number of oder peope as a proportion of the tota popuation in deveoped countries. In the next ten years, the issue wi start to impact deveoping countries, incuding China. RISING COSTS, SHRINKING BUDGETS There are economic consequences to having an aging popuation. This we-documented term covers three distinct groups: active and autonomous, fragie (over the age of 75) and dependent. As the oder generation ives onger, the younger one wi have to work more years to meet the higher cost of pensions. On the other hand, the phenomenon has given rise to the siver economy, and ensures that peope can enjoy a high quaity of ife in their own 2014 ACTIVITY AND SUSTAINABILITY REPORT

ENGAGED homes or care homes, and a that that entais. This heps them to remain sef-sufficient and provides guidance regarding their heath issues by giving them an environment that enhances their we-being. Currenty, 55 miion fragie seniors require care wordwide, and this figure is expected to increase drasticay from 2022 onwards. This pubic poicy headache is compounded by the fact that medica costs associated with aging popuations are expected to increase by over 40% between 2000 and 2050. Taking care of an aging popuation on a restricted budget represents a chaenge for governments, but aso provides opportunities for innovation and growth. The keys to meeting the chaenge: ega reforms, home care packages, research initiatives and technoogica innovations. INNOVATIONS TO HELP SENIORS STAY INDEPENDENT Heping edery peope maintain their independence is vita not ony for the we-being of individuas and their famiies but aso for pubic finances. Countries incuding Switzerand, Engand and Canada have aready taken the first step and passed aws that improve the viabiity of home care through tax cuts and heathcare packages. Other countries have funded initiatives for creating stimuating environments in nursing homes. Private companies are aso paving the future of the siver economy. Famiies need to know that their edery oved ones are safe, whie continuing with their own busy ives. Integrated systems abe to provide this reassurance are in high demand. Other innovations incude instaations and specific design spaces that hep with everyday iving, sensors that detect abnorma activity such as fa and assistance aerts. However, effectiveness is dependent on use: soutions must be pragmatic, customized and fexibe. 1.45 bn SENIORS (OVER 65 YEARS OLD) BY 2050. Source: Word Popuation Aging 2013, United Nations Report. These are the first steps in finding sustainabe soutions that maintain the independence of oder peope and hep deay, prevent or cope with dementia. Such innovations, whether via government reforms or from private companies, wi be key to promoting the we-being of seniors and their reatives and easing the burden on the pubic purse. n For more information: http://tarkett.com/ ABOUT OUR EXPERT Fréderic Serrière is an internationa expert on goba aging and mature markets. Co-founder of consutancy firm Senior Strategic, he has authored severa books and advises corporations on the Siver Economy. 14

AGING POPULATION VIEW FROM A EXPERT HELPING PEOPLE THRIVE by Cyndie Hubbe 15 Cyndie Hubbe, Director of Heathcare Deveopment at Tarkett North America, taks about innovations such as the Group s heathcare mission statement and coaboration with heathcare organizations that are setting new heathcare standards in the industry. Tarkett is committed to creating innovative fooring soutions that promote Generative Space. These are we-designed spaces that enabe us to perform at an optima eve, nurturing us and encouraging us to thrive. Tarkett s heathcare mission is to eevate fooring so that it becomes an integrated part of patient-centered care and the heaing environment. Soei d Automne, Retirement homes, France, 2014 Tarkett offered an innovative, revoutionary fooring soution, FoorInMotion, specificay to detect fas amongst residents of retirement homes. With sensors under the foor, FoorInMotion aows the dispacements of the edery to be foowed in rea time so medica staff can rapidy hep if they shoud fa whist aso aowing the heathcare professionas to detect residents who are wandering off. This is a significant hep to the personne, aowing them to monitor residents movements. LEARNING FROM OUR PARTNERS Coaboration with our partners and recognized heathcare experts in a parts of the word, such as the non-profit organizations Panetree, NXT Heath, Practice GreenHeath and the Center for Heath Design in North America, aows Tarkett to earn about patient-centered care, innovation, research and deveopment, sustainabiity, ife safety and procurement, giving the company much better insight into the needs not ony of the sick, but aso the edery. Currenty, goba heathcare is shifting from treating sickness to promoting weness. Simpy put, this means we re iving onger and better ives and we need to center on optima weness at every age. Fooring wi never cure serious disease, but it can hep someone who isn t we have a better day. Tarkett foors are designed to reduce sips and fas, provide comfort underfoot and create a cam, tranqui environment through coor and design, eements that can aso hep peope find their way. After deveoping fooring guideines for designing memory care spaces for those afficted with Azheimer s disease, we are studying how fooring can enhance spaces for those with autism. In 2014, Tarkett aunched FoorInMotion, an inteigent fooring system that wi be a game changer in our industry. FoorInMotion aims at improving the performance of heathcare and eder care institutions by providing information on the residents safety and activity. Our connected fooring system notifies staff if a fa occurs and it can aso detect intrusions or exits from a room. n 2014 ACTIVITY AND SUSTAINABILITY REPORT

ENGAGED 3.4 to 4 biion tons +3 bn 2014 2050 ADDITIONAL MIDDLE CLASS PEOPLE CONSUMING MORE RESOURCES BY 2050 (1) OF WASTE ARE PRODUCED WORLDWIDE ANNUALLY; THAT S 80 TO 126 TONS GENERATED EVERY SECOND RESOURCE SCARCITY: HOW TO BETTER USE OUR RESOURCES? Eco-design with good materias and repeated reuse of our products coud sove our resource chaenges supporting the circuar economy. 16 US$3.2 triion More than 10 miion tons MATERIAL VALUE OF CONSUMER GOODS LOST EACH YEAR (2) OF WASTE ARE PRODUCED DAILY BY HUMAN ACTIVITIES (EXCLUDING AGRICULTURE AND CONSTRUCTION) (1) Source: Word Business Counci for Sustainabe Deveopment. (2) Source: Figures from the Een McArthur Foundation and the Word Economic Forum.

RESOURCE SCARCITY VIEW FROM AN EXPERT Noteworthy 1. Effectiveness: our impact on the panet must be beneficia, not neutra. 2. We are not aiming for zero waste, but for reusabe products designed with materias that are good for peope and the environment. The Crade to Crade phiosophy enforces creativity and positive behavior. 17 CREATIVITY IS OUR RAREST RESOURCE by Michae Braungart, EPEA, Co-founder of the Crade to Crade phiosophy Chemist and optimist Michae Braungart argues that 9 biion peope by 2050 can be supported with the panet s resources if we are more creative in the way we use them and ensure they are continuousy recyced. Fears that the word s resources cannot support 9 biion peope (1) are unfounded. Many of these resources coud be infinitey recyced if they were integrated into products initiay designed for reuse, so the issue is one of basic design. Were humans to deveop products, toos, furniture, homes, factories and cities inteigenty from the outset, there woud be no issues with waste, contamination or scarcity. Creativity coud eventuay ead to endess reuse of our scarce resources whie improving peope s heath and we-being. The issue is sti that engineers and designers often design a product for its first-time use ony and do not consider its potentia use after it has broken, grown threadbare or become unfashionabe. This is where Crade to Crade principes come in. Companies that appy them not ony create a positive environmenta footprint but make a beneficia contribution to the economy, quaity of ife and equity. 2014 ACTIVITY AND SUSTAINABILITY REPORT

ENGAGED DOING THE RIGHT THING FROM THE BEGINNING To hep bring about a arge-scae transformation in the way we make things, Wiiam McDonough and I founded the Crade to Crade Products Innovation Institute, based in San Francisco (USA) with offices in Europe. The objective is to engage and guide products manufacturers and designers in widey appying Crade to Crade principes, making safe and heathy products that are continuousy reusabe in bioogica and technica nutrient cyces and have been created using good materias, cean energy, cean water and socia fairness. This approach spurs the creation of truy innovative, high-quaity and beautifu products and transforms their production into a positive force for the economy, society, and the environment. CELEBRATING LIFE AND CREATIVITY TO WELCOME OUR FUTURE GENERATIONS Crade to Crade is about ceebrating ife and creativity, and thinking in terms of positive contribution instead of neutra impact or minimizing negative impact. It s not about being ess bad. ABOUT OUR EXPERT Michae Braungart founded EPEA, the Environmenta Protection Encouragement Agency in 1987. He is a professor at Rotterdam s Erasmus University and co-author with Wiiam McDonough of The Upcyce and Crade to Crade. For severa years, Michae has supported Tarkett and Desso in their transformation into Crade to Crade companies. It s about doing things we. It is our responsibiity a stakehoders to reinvent the way we operate, do business, consume, design, use and recyce resources. Each of us can be an agent for change, together co-creating and acceerating a positive, circuar and up-cyce economy. As a stepby-step journey, I continuousy strive to connect peope, companies and eaders to not ony educate and transform them but aso to boost innovation and creative soutions. The Crade to Crade phiosophy is an engine for innovation, reinventing high quaity and eco-effective products designed with safe materias that are good for the environment and for peope s we-being. n (1) Word Business Counci for Sustainabe Deveopment. For more information: http://tarkett.com/ 3 bn ADDITIONAL MIDDLE CLASS PEOPLE CONSUMING MORE RESOURCES BY 2050. Source: Word Business Counci for Sustainabe Deveopment. 18

RESOURCE SCARCITY VIEW FROM A EXPERT GOING FULL CIRCLE by Anne-Christine Ayed 19 Anne-Christine Ayed, EVP Research, Innovation & Environment expains Tarkett s commitment to the circuar economy and a Crade to Crade approach. At Tarkett, we are firmy committed to moving from the historica inear economy, with its oneoff use and disposa of resources, to a profitabe circuar economy mode in which resources are recyced and reused, as we as moving from the traditiona consumption mode to the functiona and service economy mode. The circuar economy encompasses two production cyces: one in which products are manufactured with resources that are recyced and are then reused themseves, and one in which biodegradabe materias are returned to nature. Chattanooga Airport, United States, 2014 When the owners of Chattanooga Airport, Tennessee decided to repace the airport s Powerbond fooring (Tandus brand) as part of a fu airport renovation, the brief was simpe: attractive, durabe, ong asting and sustainabe. Powerbond proved once again to be the soution: a hybrid resiient sheet fooring, impermeabe to moisture and 100% recycabe. A the Powerbond removed from the termina was cosed-oop recyced at Tandus s nearby faciity before being reinstaed at the airport. CLOSED-LOOP CIRCULAR DESIGN Working cosey with the Environmenta Protection Encouragement Agency (EPEA see pp. 16 17) we have adopted a cosed-oop design process focused on four areas. The first is good materias: choosing materias that are positive to the environment and peope s heath, and which can reenter in one of the cyces. For exampe, our inoeum range is made from inseed oi, pine resin and cork whie the underay of our ethos carpet ties (Tandus brand) is made from PVB used in security gass and windshieds. The second is resource stewardship: wisey using resources across a our operations, by saving water, optimizing and using renewabe energy and reducing greenhouse gas emissions across a our operations (see pp. 44 48). We are impementing cosed water oops at our production sites and 2014 ACTIVITY AND SUSTAINABILITY REPORT

ENGAGED using biomass to generate energy. For exampe, our wooden fooring factories now use sawdust to generate their own energy. The third is peope-friendy spaces: contributing to our customers we-being, for exampe through the use of products that contribute to improved indoor air and environments. With asthma and other aergy sufferers in mind, we successfuy deveoped fooring products with extremey ow TVOC (1) emissions and non-phthaate pasticizers, and are now turning our attention to ceaning and maintenance systems (see pp. 24 25). Finay, through our ReStart (formery caed ReUse in Europe) program, we are working on coecting and recycing products and materias at the end of their usefu ife and re-introducing them into the manufacturing cyce. This impies working in partnership with customers, suppiers, and even competitors, to coect, disassembe and sort post-instaations and used post-consumer fooring, and identify new sources of recyced raw materias. It aso means widening our suppier base to incude, for exampe, waste management companies. MOVING TO CIRCULAR ECONOMY POWERED BY CRADLE TO CRADLE PRINCIPLES In this context, assessing, monitoring and measuring are key to our continuous improvement. That s why we aim to assess 100% of our materias based on the Crade to Crade principes by 2020, reaching 76% in 2014. Simiary, we have increased the number of our product ines with the Crade to Crade certification, sending our customers, suppiers and partners a cear signa of our commitment to the circuar economy and sustainabiity (see p. 47). n (1) Tota Voatie Organic Compounds. For more information: http://tarkett.com/ 20 Cosed Loop Circuar Design Powered by Crade to Crade principes Circuar Economy Case Study A typica exampe of eco-design using good materias is our program to produce viny foor ties from materias used in other industries. Tarkett in Brazi obtains aggregates from medicine bisters and transforms these into granuates to produce new fooring products instead of using virgin PVC. Using oca scrap materias from sources cose to the Tarkett pant enabes us to reduce both the use of virgin materias, energy and carbon emissions from transportation. It aso improves the competitiveness of Braziian products against other imported ones. Tarkett practices sustainabiity through its cosed-oop circuar design mode which is Tarkett s way of best appying the Crade to Crade principes to support the deveopment of the circuar economy. Tarkett was one of the first companies to join the Een MacArthur Foundation s Circuar Economy 100 program in February 2013.

21 RESPONSIBLE At Tarkett, we make society s chaenges our mission Heterogeneous Viny, Tapifex Exceence Beech Light. 2014 ACTIVITY AND SUSTAINABILITY REPORT

How? Thanks to our 4P sustainabe strategy (Purpose, Peope, Panet, Profit) we define sustainabiity from a new ange to hep address major society chaenges that humanity wi face over the coming years. 22 Sustainabiity is a key differentiator for Tarkett, one the few companies to have fuy integrated sustainabiity into its business strategy and to have embarked on this inspiring journey aong with its empoyees, customers and suppiers. SUSTAINABILITY INSPIRED BY A TANGIBLE PURPOSE Our sense of purpose is shaped by the compex chaenges humans wi face in 2050: ensuring that 9 biion peope (1) ive comfortaby within the imits of the panet, whie managing their ecoogica impact. At Tarkett, we are focusing on those areas (see Engaged pp. 6 19) urbanization, aging popuation, and resource scarcity where we fee we can make the biggest contribution not ony with our soutions but aso in the way we work to transform our environmenta footprint and increase our positive infuence on society and the environment. S SPECIFIC RESPONSES With more than 70% of the goba popuation expected to ive in urban areas by 2050 and spend, on average, 90% of their time indoors, smart infrastructures and indoor air quaity are important. We are responding with soutions that contribute to improve comfort, acoustics, ighting and heath. By creating ow TVOC (2) products,

23 non-phthaate (3) technoogy, designing asthma and aergy friendy soutions and capturing fine dust partices (Desso AirMaster carpet), many of our fooring soutions aim to contribute to improving heath and we-being. Simiary, we support the needs of an aging popuation through our innovative product design. Current estimates predict that 16% of the word s popuation wi be over 65 years od by 2050 (1), requiring specific iving and heaing environments. High performance fooring soutions can promote safety and hygiene by being anti-sip and joint-free, which are particuary usefu in heathcare buidings. We aso support the specific needs of edery peope and Azheimer s patients by offering coored fooring and smart technoogies such as connected foors that provide medica staff with patientreated information (see p. 14). CLOSED-LOOP: THE CIRCULAR ECONOMY MODEL Integra to Tarkett s approach to sustainabiity is its move to a profitabe circuar economy, either by recycing materias and reusing them in the manufacture of new products (the technica cyce) or by a return to nature for biodegradabe materias (the bioogica cyce). It begins by designing products made with the right materias and continues with coecting and recycing services (see pp. 18 19). The third chaenge we are addressing is the management of resources by deveoping smart, cosed-oop design based on Crade to Crade principes, thereby contributing to the deveopment of a profitabe circuar economy mode. OUR 4P STRATEGY TO BUILD A SUSTAINABLE WORLD TOGETHER PURPOSE Address Society and Humanity Chaenges PEOPLE Empowered to buid ong-asting reationships A VISIONARY PURPOSE Our commitment to our panet (see pp. 18 19 and pp. 47 48) means we seect materias that are not ony safe for peope and for the environment, but can be recycabe. We are aso responsibe in our use of energy and water. We empower our peope to achieve our 4P strategy by buiding ong-asting reationships with our communities, customers, investors and suppiers (see pp. 49 53). And we are succeeding in deveoping a mode of sustainabe growth, aowing us to invest and innovate for the ong-term viabiity of our business whie being true to our strong ethics and vaues (see pp. 63 64). This is how we work to achieve our vision of being the goba eader in innovative fooring and sports surface soutions, creating sustainabe vaue for a our stakehoders. n PLANET Act positivey on the environment and we-being PROFIT Invest & innovate for sustainabe growth (1) Source: Popuation Division of the Department of Economic and Socia Affairs of the United Nations Secretariat. (2) Tota Voatie Organic Compounds. (3) Aternative pasticizers aready used for toys and food packaging. For more information: http://tarkett.com/ 2014 ACTIVITY AND SUSTAINABILITY REPORT

RESPONSIBLE PLANET POSITIVE Environmenta sustainabiity is at the heart of Tarkett s business mode. Our Crade to Crade approach ensures we design our products to contribute positivey to the environment and to peope s we-being at each step of the product s ife, whie supporting the deveopment of the circuar economy. At Tarkett, we beieve that customers shoud not have to make a trade-off between sustainabiity, performance and design. This beief underpins our cosed-oop circuar design mode, which operates on Crade to Crade principes: good materias, resource stewardship, peopefriendy spaces and reuse of materias (see pp. 16 17). In 2014, we progressed across a four piars in the framework of our 2020 Sustainabiity Roadmap (see pp. 71 72). CHOOSING GOOD MATERIALS Our focus on good materias has ed us over the years to deveop products using materias that respect peope s heath and the environment, based on abundant and rapidy renewabe resources such as the pine resin and cork in our inoeum range, and on recyced and recycabe materias. Tandus Centiva, for exampe, deveoped an underay for our ethos carpet tie range made from recyced PVB from safety gasses: it was Crade to Crade Certified CM Siver in 2014. INCREASED UNDERSTANDING AND TRANSPARENCY We made significant progress in understanding the materias effect on peope s heath and the environment, heping us to define a positive ist of materias to use in our formuations: 76% of our materias have now been assessed by EPEA (1), a recognized scientific institute, taking us coser to our 2020 objective of ensuring a materias are systematicay assessed. Buiding reationships based on trust and transparency, we pubish Environmenta & Heath Statements (2), verified by a Cosed Loop Circuar Design Powered by Crade to Crade principes Tarkett practices sustainabiity through its cosed-oop circuar design mode, which is Tarkett s way of best appying the Crade to Crade principes to support the deveopment of the circuar economy. third-party, which describe the materias used in our products and provide environmenta and heath quaity data. MAKING RESPONSIBLE USE OF RESOURCES Resource stewardship remains a major focus at the manufacturing stage (see pp. 71 72 for indicators), notaby to gain in energy efficiency. For exampe, we repaced the gas boiers in our Kaush viny and parquet factory in Ukraine with ones that run on the sawdust produced on-site during the manufacturing process. We aso improved our use of water, primariy as a resut of our drive to impement cosed water oops at our production sites. 24

CONTRIBUTING TO A PROFITABLE CIRCULAR ECONOMY MODEL CRADLE TO CRADLE CERTIFIED CM The foowing products are Crade to Crade Certified CM : Basic for artificia turf in 2013; Bronze for rubber ties in 2015 (Basic in 2011); Evoay in 2014; Siver for wood in 2011, inoeum in 2011 and ethos in 2014; God for inoeum Veneto Essenza 100% inen in 2013. 25 IMPROVING INDOOR AIR QUALITY AND PEOPLE S WELL-BEING As a pioneer in innovations that contribute to creating peope-friendy spaces, we continued to focus on indoor air and environment quaity in our product design, both dramaticay reducing TVOC (3) emissions and switching to non-phthaate pasticizers to create products that respect peope s heath and we-being (see pp. 18 19 and 24-25). We aso deveoped fooring that can be ceaned and maintained with dry buffing, thus reducing the use of detergents and water. RECYCLING AT END-OF-USE At Tarkett, products no onger have an end of ife but simpy an end of use. In 2014, we coected 13,500 tonnes of fooring and sport surfaces that were being pued up with the objective of turning this potentia waste into high-quaity resources for new products instead. Thanks to our 7 in-house recycing centers around the word, we strive to cose the oop with our partners, fostering the circuar economy mode. RECOGNITION Our engagement and the depoyment of our goba sustainabe deveopment strategy have been recognized with awards: the BFM Green Business Award in 2011; the Trophy for Strategic Deveopment given by the French Environment and Energy Efficiency Agency and by Ernst & Young in 2012; the Sustainabe Innovation Award in 2013 awarded by the BearingPoint cabinet in partnership with the magazine L Expansion and the Écoe des Ponts ParisTech; the 2014 Sustainabe Deveopment Woman prize organized by the French magazine L Usine Nouvee, which honored our EVP Research, Innovation and Environment Anne-Christine Ayed for her work in this fied; the Luxembourg Green Business Award of the Year in 2014 during the Green Business summit in Luxembourg, initiated by GreenWorks and organized by the Farvest Group. Finay, Tarkett has been a member since 2010 of the KKR Green Portfoio Program. Designed in partnership with the non-governmenta organization Environmenta Defense Fund (EDF), the program is an opportunity for Tarkett to receive guidance and share best practices to improve its environmenta performance, incuding in the areas of greenhouse gas emissions, waste and water stewardship. n (1) Environmenta Protection Encouragement Agency. (2) Environmenta Heath Statements are currenty avaiabe on demand for the foowing products in North America: inoeum, rubber, ethos and homogeneous viny. (3) Tota Voatie Organics Compounds. For more information: http://tarkett.com/ 2014 ACTIVITY AND SUSTAINABILITY REPORT

RESPONSIBLE PEOPLE FOR SUSTAINABLE GROWTH We support growth by deveoping taent and empowering our peope to buid ong-asting reationships with communities, customers, suppiers and investors. Human resource management pays a strategic roe at Tarkett, supporting the business by ensuring we have the right taent, in the right pace, at the right time. This means investing in deveoping our peope, and promoting mobiity, but aso putting in pace toos and processes to ensure empoyees share a common cuture and common vaues. STRONG EMPLOYEE SURVEY RESULTS 2014 was a year of recognition for this commitment to investing in our peope. Our 4th biannua empoyee feedback survey, conducted by an independent third-party research institute, demonstrated progress in a areas, with 82% of empoyees taking part. Once again, we outperformed our industry benchmark in many areas, recording particuary high scores on oyaty and engagement, and on company image. Empoyees aso recognized our efforts in training managers and promoting recognition. In the ast four years, we have trained more than 1,000 managers on how to effectivey manage teams and provide feedback (Manager@Tarkett program). As a resut, more empoyees say they understand how their performance is evauated and fee their achievements are recognized through initiatives such as the Tarkett Awards. We aso continued to ro out our Taent Review program, resuting in individua performance reviews, career orientation, and personaized deveopment pans. TRAINING SUPPORTS GLOCAL APPROACH We have aso introduced new programs. Entrepreneur@Tarkett focuses on fostering managers entrepreneuria mindset, and empowering them to make decisions (see pp. 54-58). 80% OF EMPLOYEES FEEL A STRONG SENSE OF COMMITMENT TO, AND EXPECT TO BE WORKING THERE IN 2 YEARS TIME. Source: Empoyee Feedback survey 2014. Vincent Lecerf, Executive Vice President Human Resources The resuts of the 2014 Empoyee Feedback Survey are an endorsement of our strategy to invest in our peope. They show our teams are committed, engaged and fee proud to work for Tarkett. Our training programs are key to this shared sense of achievement, promoting a mindset of entrepreneurship in our oca eaders aongside shared cuture and vaues. 26

27 Tarkett Inside, the new Group Intranet to encourage coaboration and project management across muti-discipinary teams. NEW WAYS OF WORKING 2014 saw the aunch of Tarkett Inside, a new goba interna communications too. This coaborative intranet provides empoyees around the word with Group news, as we as their own oca news. It aso provides a patform for working groups: empoyees can create communities around work projects, share documents and ideas and work together in new ways. It wi be roed out to the majority of Tarkett countries in 2015. the new coaborative intranet patform which heps empoyees work together differenty, and better. Our aim: to provide empoyees with the toos, training and structure that enabe them to adapt to a changing word and work in a muticutura and muti-discipinary environment. INTEGRATING ACQUISITIONS Acquisitions, as a major pank of Tarkett s growth strategy (see pp. 4-5), represent a particuar Human Resources chaenge. Ensuring that new teams quicky understand and embrace company vaues whie retaining fexibiity to perform begins pre-acquisition: management interviews to determine cutura fit form part of our due diigence process. Post-acquisition, we run communication campaigns to hep new empoyees fee ike they are part of the Tarkett famiy and smoothy perform a progressive integration process. n It supports our GoCa approach to the business (see pp. 20 25), enabing oca eaders to be agie entrepreneurs with a customer-centric mindset, whist promoting common vaues throughout the word. In a simiar context, e-earning programs on our Code of Ethics and compiance were competed by managers, saes and purchasing teams around the word. Finay, we have started to impement 360 assessments for top managers, deveoping the feedback cuture by coeagues, peers and subordinates and sef-evauation for persona progress. FOSTERING AGILITY We are aware that Human Resources management must be dynamic to refect the gobaized, rapidy changing word around it. A good exampe is the introduction of Tarkett Inside (see inset), The Empoyee Feedback, the interna survey conducted every two years to diaog with Tarkett empoyees. 2014 ACTIVITY AND SUSTAINABILITY REPORT

RESPONSIBLE BUILDING LONG-LASTING RELATIONSHIPS WITH OUR STAKEHOLDERS COMMUNITIES Giving of our time and expertise Miche Giannuzzi, CEO At the heart of the 4P approach (Purpose, Peope, Panet, Profit) is the ong-term reationship of confidence that our teams buid with our cients, our suppiers, our investors and oca communities in order to construct a better word together, for today and for tomorrow. In compete keeping with Tarkett s ethica code of conduct, we are aso committed to respecting and promoting among our various stakehoders the 10 principes of the United Nations Goba Compact in addition to the principes of the Decaration of Human Rights and fundamenta socia rights. Tarkett, its empoyees and their famiies give of their time and expertise and have fun whie doing it. In Montrea they heped to organize the Games for Hope, a day of sporting fun that raised approximatey $225,000 chidren s charities, whie more than 200 Tandus Centiva empoyees took part across North America in Community Service Day by painting, aying fooring or setting up paygrounds. In Serbia, Tarkett empoyees gave up part of their saaries whie the Group gave financia aid to hep the thousands of Serbs who were eft homeess after severe foods. SERIOUS FUN IN MICHIGAN Tarkett North America is contributing fooring products to a new SeriousFun Chidren s Network summer camp for seriousy i chidren and their famiies. The North Star Reach camp in Pinckney, Michigan, wi be abe to accommodate more than 1,500 guests. Founded by Pau Newman, the network is a growing goba community of 30 camps and is very much in ine with Tarkett s core vaues. The camp wanted fooring that was attractive, ow maintenance and which contributed to good indoor air quaity and heathy spaces through ow VOCs. Tarkett is sponsoring at east ten chidren to attend the camp for free. 28

29 SUPPLIERS Respecting the UN Goba Compact principes as sustainabe partners Tarkett contractuay requires its main raw materias suppiers to respect the UN Goba Compact s ten principes, which ask companies to embrace, support and enact, within their sphere of infuence, a set of core vaues in the areas of human rights, abor standards, the environment and anti-corruption. In addition, Tarkett evauates major suppiers on corporate socia responsibiity criteria: environment and security. So our choice of suppier is not ony based on quaity and cost, but on their respect for man and the environment, as we as on their abiity to innovate with Tarkett, together buiding a more sustainabe future. As an exampe, Tarkett works in partnership with FSC (Forest Stewardship Counci) and PEFC (Pan European Forest Certification), certified wood suppiers, and aso heps improve safety work conditions by coaching and buying protective equipment and investing in modern, safer machinery. 59% OF S RAW MATERIALS WERE PURCHASED IN 2014 FROM SUPPLIERS WHO ARE COMMITTED TO UN GLOBAL COMPACT PRINCIPLES. 2014 ACTIVITY AND SUSTAINABILITY REPORT

RESPONSIBLE CLIENTS Integrating the circe A around the word, Tarkett is contributing with its cients to the Circuar Economy. We have deveoped ReStart, our take-back program, to coect and recyce cean postinstaation and used post-consumer fooring, thanks to our seven in-house recycing centers. A good exampe is the partnership with Wa-Mart and Linron Company in North America: In 2009, we started working with the ReStart Program because Wa-Mart wanted to recyce a construction materias. With the hep of the marketing executives, Houston engineers and production management, we produced a new VCT tie that met Wa-Mart s requirements, expains Ron Harris, co-founder of Linron Company. SHARING INSTALLERS KNOW-HOW Tarkett is committed to sharing our instaers expertise to externa professionas through the 15 Tarkett Academies wordwide. In 2014, 3,700 peope were trained, a rise of 29% from 2013. Furthermore, in France, three training centers deiver fooring speciaist dipomas recognized by the French Nationa Education Ministry. 30