Mohawk Industries, Inc. (NYSE:MHK) Q2 2020 Earnings Conference Call August 7, 2020 11:00 AM ET Company Participants Frank Boykin ??? Chief Financial Officer Jeff Lorberbaum ??? Chief Executive Officer Chris Wellborn ??? President, Chief Operating Officer and President-Global Ceramic Conference Call Participants Keith Hughes ??? Truist Securities Justin Speer ??? Zelman Associates Mike Dahl ??? RBC Capital Markets Eric Bosshard ??? Cleveland Research Matthew Bouley ??? Barclays Michael Rehaut ??? JPMorgan St ...

Financial Data and Key Metrics Changes - Net sales for Q1 2020 were $2,286 million, down 6% as reported, and decreased 4% on a legacy and constant basis [15][21] - Gross margin was 27% as reported, or 27.5% excluding charges, compared to 27.1% last year [16] - Earnings per share, excluding charges, were $1.66 compared to $2.13 last year [20] - Operating income, excluding charges, was $163 million or 7.2% of sales compared to 8.5% last year [17] Business Line Data and Key Metrics Changes - Global Ceramics segment sales were $848 million, down 6% as reported or 2% on a constant basis [21] - Flooring North America segment sales were $848 million, down 8% as reported or 7% on a constant basis [22] - Flooring Rest of World segment sales were $589 million, down 5.3% as reported or flat on a constant legacy basis [24] - Operating margin for Global Ceramics was 5.8% versus 10% last year [21] - Operating margin for Flooring North America was 4.9%, an increase of 150 basis points compared to last year's 3.4% margin [23] Market Data and Key Metrics Changes - Demand across all markets has dropped dramatically, with residential remodeling being impacted the most [10] - Sales across the enterprise in April were off about 35% compared to last year due to the virus [18] - The majority of business is in countries where governments are supplementing wages to maintain workforces [12] Company Strategy and Development Direction - The company is reducing capital expenditures, cutting non-critical expenses, and putting stock purchases on hold until the environment improves [11] - Temporary layoffs and furloughs are being implemented globally to balance production with short-term demand [11] - The company is enhancing digital sales as consumers shop online for DIY projects while staying at home [61] Management's Comments on Operating Environment and Future Outlook - Management noted that the world changed during the first quarter due to the pandemic, leading to unprecedented challenges [5] - The company is unable to predict how demand will evolve in the future, emphasizing the need for flexibility [12] - Management expressed optimism about the long-term future of the business despite current challenges [70] Other Important Information - The company obtained a $5 million term loan to expand liquidity to $1.3 billion [13] - Free cash flow during the quarter was $80 million, with total debt of $2.7 billion at the end of the quarter [28] - The company has a strong balance sheet and a BBB+ rating remains unchanged even in the current environment [29] Q&A Session Summary Question: Are retail stores starting to open up in May? - Management indicated it is too early to have details and is monitoring news from different states [73] Question: How is LVT performing in April? - LVT sales continued to expand in Q1 but slowed as the month progressed [75] Question: What is the outlook for raw materials? - Raw materials have declined, but lower material costs will take longer to flow through to costs due to declining sales [76] Question: What is the productivity outlook in Flooring North America? - Productivity improvements are expected to continue, but lower production levels will impact overall productivity [83] Question: What is the current state of the global supply chain? - Supply chain recovery is underway, but the current business trends in the U.S. are declining [91] Question: What is the expected operating loss for Q2? - An operating loss is anticipated on an EBIT basis for Q2 [116]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [Mark One] ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 01-13697 MOHAWK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) | Delaware | | | 52-1604305 | | --- | --- | --- | ...

Financial Data and Key Metrics Changes - In Q4 2019, adjusted operating income was $205 million, representing 8.4% of sales, with EPS at $2.25. For the full year, sales were $10 billion, adjusted operating income was $938 million (9.4% of sales), and EPS was $10.04 [6][25] - Operating and free cash flow for Q4 were approximately $440 million and $300 million, respectively. For the full year, these figures were about $1.4 billion and $870 million [7][25] - Total Company net sales for Q4 were $2.4 billion, down 1% year-over-year, and flat for the full year compared to 2018 [15][16] - Adjusted EBITDA was $363 million (15% margin) for Q4 and $1.5 billion (15.3% margin) for the full year [25] Business Line Data and Key Metrics Changes - Global Ceramic segment net sales were $858 million, flat year-over-year, with adjusted operating income at $54 million (6.3% margin), down from 10.1% [26] - Flooring North America segment sales were $936 million, down 4% year-over-year, with adjusted operating income at $69 million (7.4% margin) [28] - Flooring Rest of the World segment had sales of $630 million, up 2.6% year-over-year, with adjusted operating income at $89 million (14.2% margin), an increase of 140 basis points [30] Market Data and Key Metrics Changes - US ceramic imports declined 17% in Q4, with Chinese imports falling 90% [38] - The company noted that competition has increased globally, impacting pricing and mix [10] - The US market is influenced by a strong dollar and lower interest rates, positively affecting new and existing home sales [8] Company Strategy and Development Direction - The company is focusing on reducing operational complexity, improving processes, and increasing automation to enhance efficiency [12] - Investments in sales and marketing are being increased to drive growth and expand product offerings [13] - The company is introducing new products and enhancing existing ones to improve market position and broaden the customer base [13][66] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued pressure in markets and product categories in the near term, but expects improvements in the second half of 2020 [11][69] - The company is adjusting strategies to adapt to shifting consumer preferences and competitive pressures [69] - EPS guidance for Q1 2020 is set at $1.90 to $2.00, excluding one-time charges [68] Other Important Information - The company repurchased approximately $23 million of stock in the period, totaling $375 million since authorization [7] - Special items in Q4 included a $50 million charge for restructuring and a $136 million one-time tax benefit [23] Q&A Session Summary Question: Are you making money with the LVT line in Europe? - Management indicated that two of the three lines are performing well, with expectations for profitability in the US line during the year [74][75] Question: What is the cash flow outlook for 2020? - Management expects strong cash flow to continue into 2020, with a focus on improving the balance sheet [77] Question: What is the expected sales growth for 2020? - Management provided directional guidance but did not detail specific sales growth expectations by segment [83] Question: How is the company addressing restructuring costs? - Management noted that the full run rate impact of restructuring will be realized in the third quarter of 2020 [85] Question: What is the impact of the LVT rebate on EPS? - The rebate is expected to provide a benefit in the first quarter, largely offset by inventory and lower pricing [161] Question: How is the company managing inflation and raw material costs? - Management indicated that raw material prices have decreased, and they expect market prices to reflect these changes [129][130] Question: When should operating leverage from SG&A investments be expected? - Management expects to see benefits from SG&A investments in the second half of 2020 [133]

Mohawk Industries, Inc. (NYSE:MHK) Q3 2019 Earnings Conference Call October 25, 2019 11:00 AM ET Company Participants Ken Huelskamp - VP, IR Jeff Lorberbaum - Chairman & CEO Chris Wellborn - COO Glenn Landau - CFO Conference Call Participants John Baugh - Stifel Stephen Kim - Evercore ISI Michael Rehaut - JPMorgan Phil Ng - Jefferies Michael Wood ??? Nomura Instinet Keith Hughes - SunTrust Truman Patterson - Wells Fargo Tim Wojs - Baird Justin Speer - Zelman & Associates Mike Dahl - RBC Capital Markets Matt ...

Financial Data and Key Metrics Changes - The company's net sales for Q2 2019 were $2.6 billion, up 0.3% as reported and up 2.4% on a constant basis compared to the previous year [51] - Adjusted operating income was $277 million, representing 10.7% of sales, which is an improvement of 220 basis points from the first quarter [52] - Adjusted net earnings per share decreased to $2.89, down 18% from $3.51 in the previous year [57] Business Line Data and Key Metrics Changes - Global ceramic segment sales increased by 3.1% as reported and 5.3% on a constant basis, with an adjusted operating margin of 12.4%, down from 15.1% the previous year [57][58] - Flooring North America segment sales decreased by 7% year-over-year to $983 million, with an adjusted operating income of $63 million or 6.4% of net sales [59][60] - Flooring rest of the world segment sales were up 9% as reported and 14.7% on a constant basis, with an adjusted operating income of $107 million or 16.7% of sales [61] Market Data and Key Metrics Changes - The U.S. housing market remains challenging, impacting flooring demand, with LVT (Luxury Vinyl Tile) continuing to grow significantly [9][32] - European markets are experiencing slow growth due to political uncertainties and economic conditions, while the Russian market is expected to improve [10][31] - The Mexican ceramic industry is growing despite a slowing local economy [10] Company Strategy and Development Direction - The company is streamlining operations, consolidating facilities, and reducing production to manage inventory levels [11] - New product categories are being introduced, and promotions are being increased to adapt to market changes [11][21] - The company is focused on enhancing long-term value through investments in new products and geographic expansion [14][70] Management's Comments on Operating Environment and Future Outlook - Management anticipates a difficult environment with pressure on volume and pricing due to excess capacity and soft market conditions [8][68] - The company expects to see improvements in LVT production and sales as new technologies are implemented [40][70] - EPS guidance for Q3 is set at $2.68 per share, excluding one-time charges, with a focus on optimizing long-term growth [70] Other Important Information - The effective tax rate for the quarter was 22%, expected to range between 18% to 20% in Q3 [57] - The company is facing restructuring costs of approximately $94 million for the full year, primarily related to flooring North America [55] Q&A Session Summary Question: Inventory Management and Production Adjustments - Management indicated that inventory adjustments will depend on market conditions and expected production reductions if the industry declines [75][76] Question: LVT Production and European Facility Performance - Significant progress has been made in LVT production, with expectations for the European facility to reach breakeven next year [79][81] Question: Changes in Flooring North America Segment - Management acknowledged underperformance in residential carpet sales and noted increased competition and a shift in customer preferences [85][87] Question: Inventory Levels and Market Conditions - Management expects a more meaningful downtime expense in Q3 due to excess inventory in the ceramic market [89][90] Question: Carpet Market Performance - The carpet industry is experiencing a decline, with a shift towards lower-quality products impacting margins [95][98] Question: Promotional Activities and Pricing Pressure - Increased promotional activities are expected to continue, with pricing pressures embedded in the Q3 estimates [104] Question: Future Cash Flow and Productivity Initiatives - Management indicated that restructuring actions will lead to productivity improvements, but benefits may not be fully realized until next year [121][122]

Mohawk Industries, Inc. (NYSE:MHK) Q1 2019 Earnings Conference Call April 26, 2019 11:00 AM ET Company Participants Frank Boykin - Senior Consultant Jeff Lorberbaum - Chairman and CEO Chris Wellborn - President and COO Glenn Landau - CFO Conference Call Participants Stephen East - Wells Fargo Tim Wojs - Robert W. Baird Susan Maklari - Credit Suisse Stephen Kim - Evercore ISI Mike Dahl - RBC Capital Markets Keith Hughes - SunTrust Robinson Humphrey Justin Speer - Zelman & Associates John Baugh - Stifel Nicol ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [Mark One] ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 01-13697 MOHAWK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 52-1604305 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - In Q4 2018, the company reported sales of $2.4 billion, an increase of 3% as reported or 5% on a constant currency basis [11] - Adjusted operating income was $241 million, representing 10% of sales, with adjusted EPS of $2.53, a decrease of 26% compared to the previous year [46] - Gross margin was 26.4%, down from 32.3% the previous year, primarily due to inflation and lower productivity [43] - Operating margin excluding charges was 9.8%, down from 15.1% last year, impacted by inflation and increased start-up costs [45] Business Line Data and Key Metrics Changes - Global ceramic segment sales increased about 5% to $861 million, with operating income of approximately $87 million, a margin of 10.1%, down from 14% last year [47] - Flooring North America segment sales were approximately $974 million, decreasing about 3%, with an operating income margin of 8.9%, down from 16.7% last year [49] - Flooring Rest of World segment sales were $614 million, an increase of 12%, with an operating income margin of 12.8%, down from 15.8% last year [50] Market Data and Key Metrics Changes - The U.S. market saw LVT sales continue to increase, impacting the purchase of other flooring products [27] - The Russian ceramic market showed substantial growth, although the weaker ruble reduced translated results [24] - In Europe, market conditions softened, particularly in Italy, which faced recessionary pressures [20] Company Strategy and Development Direction - The company invested approximately $1.5 billion in 2018 to enhance long-term performance through new product categories, acquisitions, and cost-saving initiatives [7] - The strategy includes increasing production efficiency and differentiation in LVT operations, with a focus on high-end products [9] - The company plans to realize benefits from capital investments in 2020 and beyond, as volume and productivity improve [10] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding macroeconomic conditions, including slowing economies and housing markets, which could impact results [55] - The company anticipates improvements in sales and margins throughout 2019, despite challenges from inflation and competitive pressures [56] - Management highlighted the importance of innovative product introductions and price increases to recover costs [56] Other Important Information - The company repurchased approximately $274 million of its stock, reducing the share count by 3% [12] - The company expects a first-quarter EPS guidance of $2.02 to $2.12, excluding one-time charges [56] - The balance sheet remains strong, with total debt at $3.3 billion and leverage at 1.8 times debt to EBITDA [53] Q&A Session Summary Question: Industry dynamics in the U.S. ceramics market - Management noted that competitors are reducing production rates significantly, with over 50% of U.S. capacity satisfied by imports [61] Question: Market stabilization updates - Management indicated that while the Russian market is improving, the Italian market is slowing down due to recession [63] Question: LVT production plans - The strategy remains focused on producing mid to high-end rigid products domestically while also importing to meet market demand [67] Question: Inventory management - Management explained that inventory growth is primarily due to new businesses and acquisitions, with expectations for inventory levels to normalize later in the year [71] Question: Margin improvement expectations - Management expects improvements in both revenue and margins as the year progresses, despite current economic uncertainties [77] Question: Impact of tariffs - Management stated that they have not built any additional tariffs into their plans but will adjust operations as necessary [80] Question: Changes in management structure - The new president of Flooring North America has implemented changes to enhance efficiency and execution across product categories [93]