Tarkett: Decision of the French Competition Author
Post# of 301275
Decision of the French Competition Authority
Paris - La Défense, October 19 th , 2017
Tarkett takes note of the French Competition Authority's decision to fine several manufacturers of resilient floor coverings operating in the French market. The procedure follows an investigation that started in March 2013 concerning former practices that began back in 1990.
Since the start of the investigation, Tarkett has fully co-operated with the French Competition Authority, under both the leniency program and the new settlement procedure introduced under the "Macron act" of 6 August 2015.
The fine decided by the French Competition Authority amounts to €165 million, which exceeds the €150 million provision booked in the company's accounts as of June 30th, 2017. Tarkett is currently reviewing the decision. In the meantime the Group will incur an additional charge of €15 million in Q4. The payment of the total amount of the fine will be effective before the end of 2017 or early 2018.
This exceptional charge will lead to Tarkett reporting a negative net income for 2017, but this will not result in any changes in the 2020 strategic plan's financial targets or impact its ability to meet its financial covenants.
Tarkett reiterates that these sanctioned practices were limited to France. Abiding by competition law is one of the Group's core ethical values. Accordingly, the Group will further strengthen its existing compliance program, with a particular focus on ensuring strict compliance with applicable competition rules. The program notably incorporates the implementation of enhanced training content and a compliance hotline covering competition law.
About Tarkett With net sales of more than €2.7bn in 2016, Tarkett is a worldwide leader of innovative flooring and sports surface solutions. Offering a wide range of products including vinyl, linoleum, rubber, carpet, wood and laminate flooring, artificial turf and athletics tracks, the Group serves customers in over 100 countries across the globe. With 12,500 employees and 34 industrial sites, Tarkett sells 1.3 million square meters of flooring every day, for hospitals, schools, housing, hotels, offices, stores and sports fields. Committed to sustainable development, the Group has implemented an eco-innovation strategy and promotes a circular economy. Tarkett is listed on Euronext Paris (compartment A, ISIN: FR0004188670, ticker TKTT) as well as on the SBF 120 and CAC Mid 60 indexes. www.tarkett.com
Investor Relations Contact Tarkett - Alexandra Baubigeat Boucheron - alexandra.baubigeatboucheron@tarkett.com
Media Contacts Tarkett - Véronique Bouchard Bienaymé - communication@tarkett.com Brunswick - tarkett@brunswickgroup.com - Tel: +33 (0)1 53 96 83 83
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