Ethan Allen Interiors Inc. · NYSE:ETD
Ethan Allen Interiors — Investor Presentation (September 2015)
87 slides from Ethan Allen Interiors's investor presentation, Sep 16, 2015
Slide 1: ETHAN ALLEN
ETHAN ALLEN
Slide 2: Positioned to Grow
Positioned to Grow * Strategic Focus on Manufacturing/Logistics Consolidation and Investment Strengthening Interior Design Network Repositioning Offerings Adding Technology to Personal Service Accelerating Marketing Efforts
Slide 3: An American Journey: 1932-1990
An American Journey Brand Evolution and Reinvention 1932-1990 Focus on Early American/Traditional Established Gallery Program Established 30 Manufacturing Facilities in U.S. Major Focus on Efficient Logistics Network From Private to Public to Private to Public
Slide 4: An American Journey 1932-1990
An American Journey 1932-1990
Slide 5: An American Journey: 1990-2010
An American Journey Brand Evolution and Reinvention 1990-2010 Speaking with One Voice Colonial to Classic with a Modern Perspective Impact of Globalization and Commoditization Retail Network Development Between Licensees and Company Operated World’s Leading Interior Design Company
Slide 6: An American Journey 1990-2010
An American Journey 1990-2010
Slide 7: An American Journey: 2010 Forward
An American Journey Brand Evolution and Reinvention 2010 Forward * Strategic Focus on Manufacturing/Logistics Consolidation and Investments Strengthening Interior Design Network Repositioning Offerings Adding Technology to Personal Services Accelerating Marketing Efforts
Slide 8: Key Financial Metrics
Key Financial Metrics Post-Great Recession 5-Year FY 2015 2014 2013 2012 2011 CAGR 2010 2009 2008 Net Sales $ 754.6 746.7 7294 729.4 679 5.0% 590.1 647.3 $980.0 AGR 1.1% 2.4% 0.0% 7.4% 15.1% 8.8% -34.0% -2.5% Gross Margin 54.5% 54.4% 546% 535% 51.5% 47.5% 515% 53.7% ‘Adj. Op. income $ 705 74.3 68.8
Slide 9: Post-Great Recession
Post-Great Recession FY 2015 2014 2013 2012 2011 2010 2009 2008 Net Cash Flow from Operating Activities S551 59.9 61.3 37.7 63.2 51.3 21.9 $ 86.1 Total 2011-2015 $ 277.2 Cash Dividends Paid $ 13.3 11.3 22.2 8.1 5.8 5.8 23.6 $ 25.5 Total 2011-2015 $ 60.7 Dividend Per Share $ 0.50 0.40 0.36 0.30 0.22
Slide 10: Shareholder Return
Shareholder Return (millions) Since Last5 Going Fiscal years Public Share repurchases $ 20.6 $ 549.2 Dividends paid $ 60.7 $ 348.4 Capital expenditures $ 96.3 $ 740.2 Debt repaid $ 210.4 $ 390.9 $ 388.0 $ 2,028.6 Total shares issued 46.7 Shares outstanding 6/30/05 34.5 Shares outstanding 6/30/15 28.
Slide 11: Opportunity Scenarios
(S, millions except per share) Opportunity Scenarios Previous Peak F2015 A B c D Net sales 754.6 800 900 1,066 1,200 Gross margin 54.5% 55.0% 55.5% 56.0% 56.5% Operating expenses 340.7 354 385 437 478 % of NS 45.1% 44.3% 42.8% 41.0% 39.9% Operating income 70.5 86 114 160 200 % of NS 9.3% 10.7%. 12.7
Slide 12: Optimizing Capital Structure
Optimizing Capital Structure ¢ Maintaining Strong Controls over Cash Flow ¢ Adding Debt to Capital Structure * Investing in our Enterprise * Continued Improvement of Stockholder Returns
Slide 13: An American Journey: 2010 Forward
An American Journey Brand Evolution and Reinvention 2010 Forward * Strategic Focus on Manufacturing/Logistics Consolidation and Investments Strengthening Interior Design Network Repositioning Offerings Adding Technology to Personal Services Accelerating Marketing Efforts
Slide 14: Vertically Integrated - From Design to Delivery
Vertically Integrated - From Design to Delivery Manufacturing Brand A Retail Administration & Sourcing Merchandising Company Retail Division Finance Design manufactures Independent Technology EOib:ct Network Advertising products Human Communication Products are International resources ss custom made
Slide 15: Manufacturing & Logistics 1985
Manufacturing & Logistics 1985 ETHAN ALLEN
Slide 16: Plants Consolidated & Sold
Plants Consolidated & Sold (net total proceeds $10.5MM) Andover, ME Boonville, NY Bridgewater, VA Burnham, ME Union City, PA Frewsburg, NY Island Pond, VT Mayville, NY Morganton, NC Randolph, VT Spruce Pine, NC Ashburnham, MA Asheville, NC Dudley, MA Eldred, PA Chino, CA Kenmar, PA Morganton, NC Vol
Slide 17: Distribution / Service Centers Consolidated
Distribution / Service Centers Consolidated Falconer, NY Old Fort, NC Kentland, IN Chino, CA Langhorne, PA Chelmsford, MA Chesapeake, VA Decatur, IL Plant City, FL Lavonia, MI Orleans, VT
Slide 18: Manufacturing & Logistics 2015
Manufacturing & Logistics 2015 ETHAN ALLEN
Slide 19: Investing In North American Manufacturing and Logistics
Investing In North American Manufacturing and Logistics + Two distribution centers, owned by the company, strategically located in Virginia and Oklahoma + Maintain strong capacity to ship in about four weeks + Focus on minimizing transit damages and improving packaging + Managing fuel costs + Expand
Slide 20: Strengthening and Expanding Interior Design Retail Network
Strengthening and Expanding Interior Design Retail Network + Leading interior design enterprise with 1,500 interior designers in North America + Added entrepreneurial interior designers — 60% with entrepreneurial backgrounds + Expanded Interior Design Affiliate Program (IDA) with over 5,000 members
Slide 21: Design Centers
Design Centers Zz uw 4 a <x Zz < al, a Ww
Slide 22: International Design Centers
International Design Centers
Slide 23: Classic Design Locations
Classic Design 133 Locations + Danbury, CT + Torrance, CA + Boise, ID + Tucson, AZ + Baltimore, MD + Towson, MD + Dallas, TX + Wilmington, NC + Allentown, PA + Staten Island, NY + Beaverton, OR + ~—-Huntington, NY + Shenandoah, TX + — Quincy, MA + Frederick, MD + Portsmouth, MA * + Glendale, AZ + Sh
Slide 24: Classic Design Locations
Classic Design 133 Locations + Hartsdale, NY + Schenectady, NY + Mishawaka, IN + Fayetteville, NY + CedarRapids,I|A + Cary, NC + Davenport, IA —-~Pineville, NC + Overland Park, KS + Asheville, NC + Louisville, KY + Worthington, OH + Metairie, LA + Akron, OH + Baton Rouge, LA + Centerville, OH + Rock
Slide 25: Neoclassical Design Locations
Neoclassical Design 52 locations + Ft Wayne, IN + Natick, MA + Chadds Ford, PA + ~~ Reno, NV + Maple Grove, MN + Knoxville, TN + Richmond, VA + Lexington, KY + Staten Island, NY + ~~ Plymouth, MA + Bluffton, SC + Ventura, CA + Mt Pleasant, SC + ~— Orlando, FL + Hoover, AL + San Jose, CA + Ridgeland,
Slide 26: International Design Centers Locations
International Design Centers 107 locations CANADA Calgary (2) Mississauga Montreal Richmond Thornhill Toronto CHINA Beijing Lize Beijing Chaoyang Park Bejing Olympic Beijing Dongsanhuan Chengdu Shuncheng Chengdu Luxhill Chengdu Fusenmei Dalian Aolinpike Shenyang Wulihe Dalian Xinghai Shenyang Olympi
Slide 27: Lifestyle Design Locations
Lifestyle Design 23 locations + Las Vegas, NV + Portland, ME + Marlboro, NJ + Marlton, NJ + Lyndhurst, NY + Manhattan, NY + Cleveland, OH + Pittsburgh, PA + Raleigh, NC + Arlington, VA + Annapolis, MD + West Des Moines, IA ' + Sarasota, FL . + Winter Park, FL + Chattanooga, TN + Bellevue, WA + Corte
Slide 28: Relocations Since 2000 — Independent
Relocations Since 2000 — Independent ¢s) Wexford, PA Colorado Springs, CO Miami, FL Pusan, South Korea Greenville, SC Langhorne (Trevose), PA Setauket (Lake Grove), NY Princeton (Lawrenceville), NJ Knoxville, TN Woodland Hills (Northridge), CA Orlando, FL Taipei, Taiwan Reno, NV Osprey, FL San Jose,
Slide 29: Relocations Since 2000 — Corporate
Relocations since 2000 — Corporate ¢s) Sterling (CT Avenue), VA Agoura Hills (Thousand Oaks), CA Overland Park, KS Staten Island, NY Laguna Niguel (Lake Forest), CA Maple Grove (Minnetonka), MN Woodmere (Chagrin Falls), OH Chadds Ford (Concordville), PA Tustin (Santa Ana), CA Roseville (Sacramento),
Slide 30: Retail Property Sold
Retail Property sold (38 properties, total net proceeds $67.2MM) Wesley Chapel, FL O'Fallon, IL Centennial, CO West Palm Beach, FL Lewisville, TX San Antonio, TX Forest Hills, NY Independence, MO Altoona, PA Artesia, CA Modesto, CA Saginaw, MI Valencia, CA Eagan, MN Naples, FL Zona Rosa, MO Aurora,
Slide 31: New Design Centers Opened 2015
New Design Centers Opened 2015 ETHAN ALLEN Chattanooga, TN Las Vegas, NV Marlton, NJ Shenandoah, TX
Slide 32: New International Design Centers Opened 2015
New International Design Centers Opened 2015 Doha, Qatar Dubai, UAE
Slide 33: New International Design Centers in China
New International Design Centers in China Opened 2015 Haikou, China (Grand Opening) Beijing 3 Ring Road, China
Slide 34: New Design Center Construction
New Design Center Construction McCandless, PA - September 2015 Wichita, KS - opened July 2015 =_—. King of Prussia, PA - September 2015
Slide 35: New Design Center Construction
New Design Center Construction Rockville, MD - February 2016
Slide 36: New Design Center Construction
New Design Center Construction & ce ZN NM :) Cranston, RI - February 2016 nO Ak OA Hyannis, MA - April 2016
Slide 37: Hannover, Germany - September 2015
== TALE hake Mit Liebe zum Detail haben wir mehr als 1.000 m?* Ambiente-Ausstellung fiir Sie neu gestaltet! — [anna Hannover, Germany - September 2015
Slide 38: 1010 Ave, Manhattan
1010 34 Ave, Manhattan ETHAN ALLEN
Slide 39: New Design Center Construction
New Design Center Construction Manhattan, NY - April 2016
Slide 40: Repositioning Offerings
Repositioning Offerings * Classic Designs * Quality ¢ Fashionable ¢ Relaxed ¢ Value
Slide 41: Repositioning Offerings: Phase I
Repositioning Offerings ¢ Phase I: Fall 2014 — Introduced casual classics — Introduction focused on relaxed finishes and comfort with relevant products for how people live today
Slide 42: Slide 42
Slide 43: ETHAN ALLEN
LZ a ETHAN ALLEN
Slide 44: Slide 44
Slide 45: Repositioning Offerings: Phase II
Repositioning Offerings ¢ Phase Il: Spring 2015 — Launched romantic classics with unique, stand-alone, timeless pieces — New finishes, the injection of color, and great forms create more fashion looks for the home; manufacturing centered around company’s U.S. workshops
Slide 46: ETHAN ALLEN
ETHAN ALLEN
Slide 47: Slide 47
Slide 48: ETHAN ALLEN
N ALLEN
Slide 49: Repositioning Offerings: Phase III
Repositioning Offerings ¢ Phase Ill: Fall 2015 — Romantic classics with influences inspired by European designs — Taking inspiration from the classics and modernizing them for today’s living; continue to focus on U.S. manufacturing
Slide 50: Slide 50
Slide 51: ETHAN ALLEN
ETHAN ALLEN
Slide 52: ETHAN ALLEN
ETHAN ALLEN
Slide 53: Repositioning Offerings: Phase IV
Repositioning Offerings ¢ Phase IV: Spring 2016 — Casual classics with romantic country influences
Slide 54: Technology Footprint
Technology Footprint ¢ Manufacturing / Logistics ¢ Merchandising / ERP * Retail Systems ¢ Point of Sale ¢« Web/ Digital
Slide 55: Integrated Information Systems
Integrated Information Systems Orders and Vireual Store Shipping info National ops oar SORPORATE: Fi 5 orders, Master Shipping & Prediction item Scheduling Information ine RETAILER. MERICAN Information System Initiatives - Improved forecasting - Supply Chain Management Systems - Inventory Management
Slide 56: Adding Technology to Personal Service
Adding Technology to Personal Service * Omni-channel Experience Physical Stores ¢ ethanallen.com aut ° Tablets a a ord Web Sites * Touchscreens O var a Kiosks VW <4 a Comput *« POS Systems rm ¢ ERP Systems canis | ¥
Slide 57: Design Services
Design Services ETHAN ALLEN MEETOUR DESIGNERS
Slide 58: Digital
Digital ¢ ethanallen.com ¢ Mobile Commerce ¢ In-store Touchscreens * Site Redesign
Slide 59: Responsive for Mobile
Responsive for Mobile 200 Verizon > 748 PM, > 90200 Verizon 36 013 AM ethanallen.com ethanallen.com ETHAN ALLEN y WHAT'S NEW FURNITURE DECOR BEDDING UGHTING RUGS & DRAPERY KIDS & TEENS OUR NEW GEORGETOWN BED ‘ouTDooR SHOP BEDROOM CLEARANCE Free Design Service & Inspiration
Slide 60: ethanallen.com — Continual Updates
ethanallen.com — Continual Updates Product Listing Page nr —— Search Tool Product Pages Cart & Checkout Header & Footer
Slide 61: Gift Registry
Gift Registry ‘JULY 1 - 8: A CELEBRATION OF AMERICAN CLASSICS evr eis ETHAN ALLEN a Free Design Service cnapiration | Catalogs | Regisuy | Blog WHATSNEW FURNITURE «DECOR BEDOING LIGHTING -—««RUGSRDRAPERY © KIDSAITEENS OUTDOOR CLEARANCE ETHAN ALLEN | cearcarsasme | GIFT REGISTRY Special colobrations
Slide 62: Product Detail Page
Product Detail Page ETHAN ALLEN con EE Free Despn Savior Alpiation | Catsoge | Rag | og Veer -- Q
Slide 63: ETHAN ALLEN
ETHAN ALLEN
Slide 64: Custom Design
Custom Design ETHAN ALLEN
Slide 65: Tablets for In-store and In-home
Tablets for In-store and In-home
Slide 66: Touchscreen Selling Tools
Touchscreen Selling Tools
Slide 67: Accelerating Marketing Efforts
Accelerating Marketing Efforts ¢ Create Brand Awareness ¢ Motivate Through Special Offers
Slide 68: Accelerating Marketing Efforts
Accelerating Marketing Efforts « Muses 328-page Book ¢ About 30 Million Direct Mail ¢ Digital and Television Campaigns * Social Media / Grassroots ¢ Design Center Projection
Slide 69: Fall Issue, September — pages
Fall Issue, September — 76 pages
Slide 70: Slide 70
Slide 71: Slide 71
Slide 72: ETHAN ALLEN
ETHAN ALLEN
Slide 73: September storewide event
, the September storewide event SAVE 20% ON SAVE 20% N Times SAVE 15%
Slide 74: Fall Issue, October — pages
Fall Issue, October — 100 pages ETHAN ALLEN
Slide 75: IDYLLIC BEAUTY
IDYLLIC BEAUTY
Slide 76: Slide 76
Slide 77: cene, but tantalizing textures are |
cene, but tantalizing textures are |
Slide 78: ETHAN ALLEN
ETHAN ALLEN
Slide 79: HGTV Dream Home 2016 Sponsor
HGTV Dream Home 2016 Sponsor ¢ Merritt Island, FL, waterfront property renovation ¢ Expanded time frame with more weeks on air ¢ Usage rights across multiple channels
Slide 80: National Print
National Print ETHAN ALLEN 1 wey ETHAN ALLEN
Slide 81: Slide 81
Slide 82: Slide 82
Slide 83: Slide 83
Slide 84: Slide 84
Slide 85: Advertising - China
Slide 86: Digital
Slide 87: Social
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