Somnigroup International Inc. · NYSE:SGI

Somnigroup International — Tempur Sealy International — Q1 2015 Earnings Presentation

20 slides from Somnigroup International's earnings presentation, Apr 28, 2015

  1. Slide 1: 1Q 2015 Financial Results Key Highlights

    1 Tempur Sealy International, Inc. April 28, 2015 1Q 2015 Financial Results Key Highlights

  2. Slide 2: Forward-Looking Statements

    2 Forward-Looking Statements Note Regarding Trademarks, Trade Names and Service Marks: TEMPUR, Tempur-Pedic, TEMPUR-Cloud, TEMPUR-Choice, TEMPUR-Weightless, TEMPUR-Contour, TEMPUR-Rhapsody, TEMPUR-Flex, GrandBed, TEMPUR-Simplicity, TEMPUR-Ergo, TEMPUR-UP, TEMPUR-Neck, TEMPUR-Symphony, TEMPUR-Comfort

  3. Slide 3: Largest And Only Truly Global Bedding Company

    3  Largest And Only Truly Global Bedding Company  Comprehensive Portfolio of Iconic Brands  Complete and Complementary Product Offering  Strong Management Team, Executing A Compelling Strategy  Significant Sales, Margin and Earnings Growth Opportunity  Strong Cash Flow

  4. Slide 4: Tempur Sealy Strategic Priorities

    4 Tempur Sealy Strategic Priorities Leverage and Strengthen Our Comprehensive Portfolio Of Iconic Brands & Products Expand Distribution And Seek Highest Dealer Advocacy Expand Margins With Focus On Driving Significant Cost Improvement Accretive Acquisitions Of Licensees And Joint Ventures Leverage G

  5. Slide 5: Focused On Execution To Deliver Stockholder Value

    5 Focused On Execution To Deliver Stockholder Value 1Q 2015 Results Ahead Of Expectations  Solid 1Q performance with net sales, adjusted operating margin1 and adjusted EPS2 ahead of plan despite a more challenging currency environment than predicted in guidance  On a constant currency3 basis net s

  6. Slide 6: 1Q 2015 – TPX Performance Summary

    6 1Q 2015 – TPX Performance Summary $701.9 38.7% 9.9% $0.53 $91.4 4.6x $739.5 38.5% 9.2% $0.55 $90.5 3.9x Net Sales Adjusted Gross Margin Adjusted Operating Margin Adjusted EPS Adjusted EBITDA Leverage 1Q-14 1Q-15  Consolidated net sales of $739.5 million were ahead of expectations and on a constan

  7. Slide 7: 1Q 2015 North America Summary

    7 1Q 2015 North America Summary $552.6 33.7% 34.0% 9.6% 10.6% $594.1 34.2% 35.1% 9.7% 11.2% Net Sales GAAP Gross Margin Adjusted Gross Margin GAAP Operating Margin Adjusted Operating Margin North America 1Q-14 1Q-15  North America net sales increased 7.5% to $594.1 million and on a constant currenc

  8. Slide 8: 1Q 2015 International Summary

    8 1Q 2015 International Summary $149.3 55.8% 55.8% 22.4% 22.4% $145.4 52.0% 52.4% 17.4% 18.3% Net Sales GAAP Gross Margin Adjusted Gross Margin GAAP Operating Margin Adjusted Operating Margin International 1Q-14 1Q-15 -2.6% Actual +12.8% Constant Currency  International net sales decreased 2.6% to

  9. Slide 9: Updated Full Year 2015 Financial Guidance

    9 Updated Full Year 2015 Financial Guidance FY 2015 Guidance Old Guidance Range New Guidance Range Y/Y Chg. Net Sales $3.050 to $3.150 Billion $3.100 to $3.175 Billion +4% to +6% Constant Currency2 Net Sales +8% to +10% Adjusted EPS3 $2.70 to $3.10 $2.80 to $3.15 +6% to +19% Constant Currency Adj. E

  10. Slide 10: Adjusted EPS Guidance Bridge

    10 Adjusted EPS Guidance Bridge Note 1: Management estimates. Please refer to “Forward Looking Statements”. Note 2: Adjusted EPS (which is a non-GAAP financial measure) is EPS adjusted for the Sealy Acquisition and integration costs, normalized tax rate adjustments and to exclude certain non-recurri

  11. Slide 11: Appendix

    Appendix | TEMPUR*SEALY

  12. Slide 12: Use of Non-GAAP Financial Measures

    Use of Non-GAAP Financial Measures In this investor presentation and certain of its press releases and SEC filings, the Company provides information regarding adjusted diluted earnings per share (“EPS”), adjusted gross margin, adjusted operating margin, adjusted earnings before interest, taxes, depr

  13. Slide 13: 1Q 2015 Adjusted EPS Reconciliation

    1Q 2015 Adjusted EPS Reconciliation 1Q 2014 and 1Q 2015 Adjusted EPS 13 Three Months Ended Three Months Ended (in millions, except per share amounts) March 31, 2015 March 31, 2014 GAAP net income $ 23.4 $ 27.4 Plus: Redemption value adjustment on redeemable non-controlling interest, net of tax (1) 1

  14. Slide 14: Adjusted EBITDA Reconciliation 1Q 2014 and 1Q 2015

    Adjusted EBITDA Reconciliation 1Q 2014 and 1Q 2015 Adjusted EBITDA 14 Three Months Ended Three Months Ended (in millions) March 31, 2015 March 31, 2014 GAAP net income $ 23.4 $ 27.4 Interest expense 20.4 22.2 Income taxes 10.3 11.5 Depreciation & amortization 21.8 24.0 EBITDA $ 75.9 $ 85.1 Adjustmen

  15. Slide 15: Adjusted EBITDA Reconciliation Twelve Months Ended March 31, 2015

    Adjusted EBITDA Reconciliation Twelve Months Ended March 31, 2015 Adjusted EBITDA 15 Twelve Months Ended (in millions) March 31, 2015 Net income $ 104.9 Interest expense 90.1 Income taxes 63.7 Depreciation & amortization 87.5 EBITDA $ 346.2 Adjustments for financial covenant purposes: Redemption val

  16. Slide 16: Adjusted EBITDA Reconciliation Twelve Months Ended March 31, 2014

    Adjusted EBITDA Reconciliation Twelve Months Ended March 31, 2014 Adjusted EBITDA 16 (1) Transaction and integration represents costs, including legal fees, professional fees and other charges to align the businesses related to the Sealy acquisition. (in millions) Twelve Months Ended March 31, 2014

  17. Slide 17: Debt Reconciliation and Leverage Ratio Calculation

    Debt Reconciliation and Leverage Ratio Calculation Reconciliation of Total Debt to Consolidated Funded Debt Less Qualified Cash 17 (in millions) As of March 31, 2015 Consolidated funded debt less qualified cash $ 1,586.6 Adjusted EBITDA 403.7 3.93 times (1) (1) Qualified cash as defined in the credi

  18. Slide 18: 1Q 2015 Adjusted Gross And Operating Margin Reconciliation

    1Q 2015 Adjusted Gross And Operating Margin Reconciliation 1Q 2015 Adjusted Gross And Operating Margin 18 Consolidated Margin North America (1) Margin International (2) Margin Corporate (3) Net sales $ 739.5 $ 594.1 $ 145.4 — Gross profit 278.7 37.7 % 203.1 34.2 % 75.6 52.0 % — Adjustments 6.3 5.7 0

  19. Slide 19: 1Q 2014 Adjusted Gross And Operating Margin Reconciliation

    19 1Q 2014 Adjusted Gross And Operating Margin Reconciliation 1Q 2014 Adjusted Gross And Operating Margin Consolidated Margin North America (1) Margin International Margin Corporate (2) Net sales $ 701.9 $ 552.6 $ 149.3 — Gross profit 269.5 38.4 % 186.2 33.7 % 83.3 55.8 % — Adjustments 1.9 1.9 — — A

  20. Slide 20: Constant Currency Information

    Constant Currency Information In this investor presentation the Company refers to, and in other press releases and other communications with investors the Company may refer to, net sales or earnings or other historical financial information on a “constant currency basis” or “excluding FX”, which is

Tempur Sealy International — Q1 2015 Earnings Presentation on 6ix