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Global Ceramic

The
135
Billion
Square Foot Opportunity

The story of our Global Ceramic business is one of expansion across many markets, with ample ground left to cover. While we are the largest ceramic producer in the world, our global market share is only 2 percent of an estimated global market of 135 billion square feet – which means that we still have billions of square feet left to grow. Today, we enjoy leading positions in the U.S., Mexico, Western and Eastern Europe, and Russia. That position was fortified in 2017 through the acquisition of ceramic operations in Italy and Poland, as well as capacity and capability expansions in Mexico, Russia, Italy, Poland and Bulgaria. Our countertop business also is expanding. In early 2018, we began entering this category in Italy and the U.S. through manufacturing porcelain slabs. At over 10 feet by 5 feet, these slabs replicate the look of natural stone for use in countertops as well as floors, walls and building facades. In the U.S., these porcelain slabs will expand our leading countertop business. Our new state-of-the-art engineered quartz countertop plant in Tennessee will be operational by the end of the year, allowing us to become a vertically integrated manufacturer of premium countertops. Our ability to leverage existing relationships across multiple channels enables us to achieve a leading position in this fast-growing category.

Daltile Panoramic
Porcelain Surface
Elemental Selection –
Calacatta
1

Segment Strengths

  1. Worldwide ceramic leader with leading positions in North America, Western and Eastern Europe, and Russia, and sales in more than 170 countries.
  2. A portfolio of the most widely recognized ceramic brands.
  3. A North American market share that is substantially larger than the closest competitor.
  4. Unmatched worldwide production capabilities.
  5. A comprehensive range of products satisfying all channels and price points across our leading market positions.
  6. State-of-the-art manufacturing technology that yields industry-leading innovation in sizes, shapes and design visuals.
  7. Unequaled North American and Russian distribution networks.
Marazzi Porcelain Tile
Urban District Mix™
Daltile Colorbody™
Porcelain Wall Tile
Delegate™ Mosaic

2017 Achievements

  • Optimized performance of state-of-the-art Tennessee facility, which is now producing larger sizes and new shapes that provide differentiation in the marketplace
  • Prepared for new Tennessee quartz countertop plant by opening fifteen new tile and stone centers and building sales force to grow distribution; facility should be operational by end of 2018
  • Improved vertical integration of U.S. manufacturing with acquisition of Texas talc operation that ensures supply of high-quality raw material
  • Doubled capacity at Salamanca, Mexico, plant to satisfy expanding domestic market and extend sales into Central and South American market
  • Leveraged design leadership of Italian bolt-on acquisition to expand product offering
  • Invested in new production capacity at Polish bolt-on acquisition to grow business in northern and central Europe; will be operational in Q3 2018
  • Optimized European manufacturing by re-aligning production to best-suited assets
  • Installed production line in Italy to meet increasing demand for premium products
  • Added production of porcelain slabs in new Italian operations for U.S. and European markets; can be used to replicate marble, granite or other surfaces through proprietary Reveal Imaging™ technology
  • Leveraged stylish collections, well-known brand and franchised and owned retail stores to outperform Russian market and increase share
  • Expanding production in Russia to alleviate capacity constraints as market expansion creates growth opportunities
Marazzi Porcelain Tile
Material20 Collection –
Concrete Effect Stoneware