Can a closed loop business model be competitive in a predominantly linear economy? A business view by Stef Kranendijk CEO DESSO Group

DESSO is… leading in carpet tiles and artificial grass pitches Arsenal FC Microsoft

DESSO Group Business Overview Carpets80% Business Carpet50% Hotel, Marine & Aviation 9% Consumer Carpet21% Sports20% 2009 Figures - % of total business turnover

Innovation through Creativity DESSO transformed itself into a superior floor design company through better external focus via the “Circle of Architects ® ” program. Functionality DESSO invented carpet tiles that significantly improve health by superior: Indoor air quality - Less fine dust (8 times lower levels than hard floors) - No off-gassing Sound absorption in offices, healthcare and schools Cradle to Cradle ®

What is Cradle to Cradle ® ? In 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 DESSO: Cradle to Cradle ® Company

Cradle to Cradle ® – Why? It is a good, positive quality initiative Not only for the environment but also for health (in-door air quality) Waste becomes food for other products It is not only good for people & planet – it is a business building opportunity DESSO: Cradle to Cradle ® Company

Increased attention on sustainability Efficient production Waste reduction Energy saving DESSO’s past achievements Water preservation annually 50% in Belgium, goal 100% (= 410 million litres) Energy consumption 28% reduction in energy use and CO 2 emissions over the last 10 years Recycling Post industrial waste is recycled and used as fuel Eco-Efficiency DESSO: Cradle to Cradle ® Company

Eco-Effectiveness 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 All about Eco Effectiveness DESSO: Cradle to Cradle ® Company

PROGRESS OF QUALITY FROM CRADLE TO CRADLE WITH TIME Clients and suppliers are regarded as partners to reach quality. ECO- EFFECTIVENESS Analysis of all Raw Materials with Prof. Michael Braungart (EPEA) Create ‘Passive Positive List’ for existing products Use only positively defined materials Phase out non-acceptable raw materials No need to be perfect from day 1 OPTIMAL OPTIMIZING TOLERABLE IDENTIFY THE BEST: ABC-X CATEGORIZATION NOT ACCEPTABLE NOT CHARACTERIZED DESSO: Cradle to Cradle ® Company

Product Life Cycle DESSO: Cradle to Cradle ® Company

80% of DESSO’s carpet tiles C2C certified DESSO: Cradle to Cradle ® Company

Implementation and Future Steps C2C research centre at DESSO Work with (young) designers, scientists and students on C2C products After carpet tiles work on artificial grass and biodegradable woollen products Develop additional products for improved indoor climate and well-being Build international community around Cradle to Cradle ® quality Stronger marketing for Cradle to Cradle ® on global market Further implement the carpet Take Back system ReFinity ® DESSO: Cradle to Cradle ® Company

Separate the post customer carpet Into main components for further use in post customer market or into carpet again. Take Back system ReFinity ® DESSO: Cradle to Cradle ® Company

NOW Post customer yarn upcycled into new yarn Post customer backing used for Road works / cycle paths Cement industry NEAR FUTURE Cradle to Cradle Yarn is upcycled into new yarn Backing is upcycled into new backing (EcoBase ® ) Yarn and backing are upcycled in other industries such as office chairs, vacuum cleaners et cetera DESSO: Cradle to Cradle ® Company Take Back system ReFinity ®

DESSO: Cradle to Cradle ® Company Take Back system ReFinity ® Link to Refinity film

C2C Community DESSO will contribute to C2C business community worldwide Stimulate the formation of necessary C2C infrastructure Innovation Platform Encourage all stakeholders (suppliers, design community, waste management partners, customers) to consider new products and C2C design paradigms Jointly develop know-how and new technology Provide better content to CSR/Sustainability policies of companies/governments Enable improved wellness/well-being with our products, such as AirMaster ® and SoundMaster ® Offer outstanding design DESSO: Cradle to Cradle ® Company

DESSO’s C2C Network DESSO: Cradle to Cradle ® Company

For more information, please contact us or visit our website Thank you DESSO: Cradle to Cradle ® Company

DESSO AirMaster ® Very fine dust is captured and retained in the fine yarns of the DESSO AirFilters TM. Coarser fine dust is captured in the thicker yarns of the DESSO DustCollectors TM. The unique structure of DESSO AirMaster ® prevents the dust from becoming airborne again. How does it work? Enlarged profile of DESSO AirMaster ®

DESSO AirMaster ® DESSO AirMaster ® is 8 times more effective in capturing and retaining fine dust than hard flooring solutions (PM 10 )* DESSO AirMaster ® is 4 times more effective in capturing and retaining fine dust than standard carpet solutions (PM 10 )**

DESSO AirMaster ®

Tests performed by Philips and BOND Textile Research indicate that a regular and thorough cleaning and maintenance programme is important for every flooring solution. For DESSO AirMaster ® it ensures a maximum regeneration of performance potential to capture and retain fine dust from the air. Tests indicate that over 80% of the dust is released by the carpet during vacuum cleaning. This is a 16% improvement compared to standard carpet. Additional tests indicate that during vacuum cleaning the airspeed at the core of the carpet structure is 55% higher compared to standard carpet, resulting in an improved dust release.

DESSO SoundMaster ®  DESSO SoundMaster ® offers an impact sound reduction value of minimal + 10 dB in addition to the standard value, thereby setting a new industry standard in carpet performance.  In addition, it offers a 60% improvement in acoustical performance in comparison to our standard carpet designs.  DESSO SoundMaster ® can contribute to an optimized acoustical performance in: offices, schools, hospitals and other commercial applications.

DESSO SoundMaster ®

DESSO EcoBase ® ‘Eco’ = Eco-effectiveness ‘Base’ = The backing of our product and the foundation of a naturally inspired step in implementation DESSO EcoBase ® Inspired by nature’s perpetual cycles of development, replacement and rebirth, DESSO EcoBase ® products bear the true identity of the Cradle to Cradle ® philosophy.

DESSO EcoBase ® Our DESSO EcoBase ® backing is specifically designed with disassembly and recycling in mind. Due to its innovative composition, EcoBase ® is fully recyclable in our own production process. The yarn, polyamide (PA), will be converted back to the basic material so that the yarn manufacturers can use it again to produce new yarn.

DESSO EcoBase ® A Silver Milestone With the launch of DESSO EcoBase ® we have achieved Cradle to Cradle ® Silver certification for our carpet tiles, thereby reaching a level where 97% of all our materials are positively defined. DESSO is proud to be the only carpet tile manufacturer in the world to have achieved Cradle to Cradle ® Silver certification for an entire carpet tile product.

Two roads diverged in a wood, and I, I took the one less traveled by, And that has made all the difference. Robert Frost, 1874 – 1963