Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Pedic International — Investor Presentation (January 2009)
17 slides from Somnigroup International's investor presentation, Jan 30, 2009
Slide 1: Investor Presentation 1Q09
Inve st or Presentation 1Q09
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements,” within the meaning of federal securities laws, which include information concerning the Company’s plans, objectives, goals, strategies, future revenues or performance, financing needs and other information that is
Slide 3: Mark Sarvary, President & CEO
Mark Sarvary, President & CEO
Slide 4: Industry Situational Assessment
u Mattress industry experiencing unprecedented downturn, though the market remains large (~$13 billion worldwide wholesale) u 2008 represents by far the worst year on record for the bedding industry u 4Q industry sales volume sharply lower u Consumer credit, while still available, has tightened u Re
Slide 5: Tempur-Pedic Situational Assessment
u Great company with great potential u Strong brand, highly valued by consumer and customers u Brand recognition comparable to leading S brands u Extremely satisfied consumers who act as enthusiastic promoters u Most profitable and best financially positioned mattress company u Leading share in the
Slide 6: Management Team
u Strong management team with >130 years running large, international businesses Management Team
Slide 7: Near-term Priorities
u For the short term, focused on costs and cash flow to ensure we come out of the current economic environment much stronger than our competitors u Full compliance with debt covenants u Continue to improve cost structure and set stage for a stronger base in 2010 u Opportunities exist in both gross m
Slide 8: Long-term Initiatives
u In 2009, we will set the stage for growth with focus on key strategic initiatives u Drive gross margin improvement u Utilization rates, network re-design, sourcing, commodity costs u Improve effectiveness with retail customers u Arm retailers with ready-made advertising to tie our marketing with t
Slide 9: Summary
u 2008 and current economic environment is unprecedented u Current environment is not the “new normal” u Great company with great potential u For the short term, focused on costs and cash flow to emerge stronger u Management is simultaneously working on initiatives that will enable us to re-ignite g
Slide 10: Dale Williams, CFO
Dale Williams, CFO
Slide 11: Net Sales
u Planning ’09 volumes flat to 4Q08 u Pricing opportunities u Improving effectiveness with retailers u International household penetration ($ in millions) For a discussion of the Company’s performance, please refer to the Company’s press release for 4Q08 results and the Company’s prior 10K and 10Q f
Slide 12: Operating Margin
u Easing commodity costs u Transportation & network redesign u Operating expense reductions u Sourcing For a discussion of the Company’s performance, please refer to the Company’s press release for 4Q08 results and the Company’s prior 10K and 10Q filings. Operating Margin
Slide 13: Operating Cash Flow
u Receivables management u Reduced inventories u Repatriation initiative ($ in millions) For a discussion of the Company’s performance, please refer to the Company’s press release for 4Q08 results and the Company’s prior 10K and 10Q filings. Operating Cash Flow
Slide 14: Funded Debt to EBITDA Covenant
u 3.0x covenant through July 2012 (maturity) u Despite economic environment, held covenant ratio flat in 2H08 u Substantial covenant cushion u Anticipate de-leverage in 2009 ($ in millions) Funded Debt to EBITDA Covenant Notes: 1. For a discussion of the Company’s performance, please refer to the Co
Slide 15: Conclusion
u Strong brand u Leading share in the Specialty segment u Most profitable mattress company u Credit facility covenant cushion u Initiatives to drive long-term growth of sales and earnings Conclusion
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Measures Reconciliation
Reconciliation of EBITDA to Net Income and Funded debt to Total debt Non-GAAP Measures The Company provides information regarding EBITDA and Funded debt which are not recognized terms under GAAP (Generally Accepted Accounting Principles) and do not purport to be alternatives to Net income as a measu
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