Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Pedic International — Investor Presentation (March 2006)
25 slides from Somnigroup International's investor presentation, Mar 13, 2006
Slide 1: Investor Presentation March 2006
Exhibit 99.1 Investor March TPX PRESSURE TEMPUR-PEDIC® SWEDISH Changing LISTED 2006 Presentation the MATTRESSES RELIEVING way NYSE.the worldAND sleeps!™ PILLOWS
Slide 2: Forward-Looking Statements
Forward-Looking expenditures, “believes,” sales, time expectations There are conditions retail commodity Additional Company’s which statements Non-GAAP This the most International TEMPUR-PEDIC® beyond most to presentation directly accounts; the are ittime isdirectly rollout amade, and are informatio
Slide 3: Tom Bryant, President, International
Tom Bryant Inc. International TEMPUR-PEDIC® President 2
Slide 4: Leading Global Premium Bedding Business
Business Leading Proprietary #1 Highest Global Truly 39% 22% Premium Believe Fastest-growing TEMPURTM Temperature-sensitive Recommended International TEMPUR-PEDIC® 3 visco-elastic CAGR growth international sales premium profitability producer Review segment formula in under Inc. products the 2005 by
Slide 5: Seasoned International Management Team
Seasoned Position Name Prior Bob Inter’l Tom Dale Matt David CFO President EVP, Founded Extensive CEO, Johnson CFO, VP/GM Lexmark/IBM President, VP, International TEMPUR-PEDIC® 4 Black Trussell Bryant Williams Clift Experience Operations International Honeywell Saga GE Founder Stairmaster Montgomery
Slide 6: Product Overview
Product Overview International TEMPUR-PEDIC® 5 Inc.
Slide 7: Tempur-Pedic Therapeutic Benefits
Tempur-Pedic Therapeutic Excellent Manages Open Unlike Body Neck Safe Antimicrobial Resistant Maintenance Never International TEMPUR-PEDIC® 6 and and Cell Conforming needs water, Healthy pressure to Pressure spine Technology dust Benefits to Inc. Free air and Swedish be supported mites, and turned o
Slide 8: Diversity of Products and 2005 Sales
Diversity Mattresses Queen Pillows 7 2005 Retail Retail Adjustable Other: Across International TEMPUR-PEDIC® Sales: Price: $35 $566.5 Price –Beds: Beds /Products $126.2 $144.0 $70 $150 Inc. Point: –$1,300 Other $165 –$1,199 million (68% –of$3,199 $2,800 (15% (17% Total)
Slide 9: Extending the Product Line
Extending Features Cover The 7 New Queen Shipping International TEMPUR-PEDIC® 8 layer RhapsodyBed GrandBed level features SRP: mattress Tempur ~April of Our$2,399 $5,499 Inc. luxury micro-fiber by Product featuring ‘06 HD™ Tempur-Pedic™ bywith Tempur-Pedic™ Line - latest silk-blended Tempur-HD™ sued
Slide 10: Vertically Integrated Business Model
Vertically Integrated International TEMPUR-PEDIC® 9 Inc. Business Model
Slide 11: Global Manufacturing Facilities
Manufacturing Denmark Duffield, Global, State >$200 Albuquerque, Note: 10 of New million vertically the VA (500K Mexico art, (500K NM invested Facilities highly sqintegrated (750K facility ft) sq automated, ft) squnder manufacturer ft) construction ISO-certifiedand plants expected to open by year en
Slide 12: Brand Building
Brand Building International TEMPUR-PEDIC® 11 Inc.
Slide 13: Tempur-Pedic's Advertising Drives Brand Awareness
Cost Tempur-Pedic’s Television High TLC DISCOVERY. CNN abc M E Better aConsumers U.S.News Newsweek Forbes Radio Includes > Newspapers THE USA International TEMPUR-PEDIC® 12WORLD 2.8 900 600 80 agazines family million Effective LIFE WALL TODAY profile billion million Homes national UNSCRIPTED REPORT
Slide 14: Continue to Build Brand: Free Sample Sleep Kit
Continue Clear, Better The In Our Yet While bed, Tempur-Pedic’s and Weightless obligation, FREE 800-955-4051 I’ve nothing Often Tempur-Pedic You’ve You’ll Utilizing painful only Using temperature. Contouring refreshed No PRESSURE SWEDISH Changing © Free Call 888-241-2111 International TEMPUR-PEDIC®
Slide 15: Customers Recommending Tempur-Pedic
Recommending Almost Recommended 95% 0% 20% 40% 60% 80% 100% 1-5 65% 6-10 18% 11+ 17% Purchase 42% Source: 14 times times of retail times all Independent resulted of customers our Tempur-Pedic Tempur-Pedic customers from survey recommendation report commissioned have thatrecommended someonebypurchase
Slide 16: Retailer Feedback on Tempur-Pedic Brand
Retailerconsumers Tempur-Pedic Brand Easiest Retailers Original International TEMPUR-PEDIC® 15 brand Feedback Bed generate Inc. has to commissioned is sell the generated ask significantly onbrand Tempur-Pedic aboutwith additional most recent more the highest third ofsales their party profit total su
Slide 17: Dale Williams, SVP and Chief Financial Officer
Dale and SVP International TEMPUR-PEDIC® 16 Williams Chief Inc. Financial Officer
Slide 18: Growing Mattress Revenues
Mattresses Established Increasing Growing 31% Mattress ($ 48% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 1. Notes: 2005 2004 2003 2002 2001 $566.5 $433.3 $268.2 $156.0 $116.8 2. International TEMPUR-PEDIC® 17 Growth For in 4Growth millions) aYr complete Revenues brand CAGR in slot
Slide 19: Growing Net Sales and Operating Income
Growing Net 39% $300 $400 $500 $600 $700 $800 Historical $836.7 $684.9 $479.1 $298.0 $221.5 ($ Operating 58% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 1. 2005 2004 2003 2002 2001 $190.9 $151.0 $97.1 $39.4 $30.4 ended grants 2. International TEMPUR-PEDIC® 18 Includes For inSales 4millions) Dec
Slide 20: Cash Flow Growth
Cash Growth Business Identified Operating ($ 51% $0 $20 $40 $60 $80 $100 Note: 2005 2004 2003 2002 2001 $102.2 $77.0 $47.0 $35.1 $19.7 International TEMPUR-PEDIC® 19 in 4millions) Flow For Yr ofmodel CAGR akey Cash operating from complete Inc. initiatives Flows generates Operations cash discussion t
Slide 21: Earnings Per Share Growth
Earnings Pro-Forma 30% $1.07 $0.82 GAAP $ 33% 2005 2004 $0.97 $0.73 Note: International TEMPUR-PEDIC® 201.20Growth 1.00 0.80 0.60 0.40 0.20 0.00 For EPS Per aEPS complete Inc. Share Growth reconciliation of Pro-Forma to GAAP earnings per share, please see reconciliation at end of presentation.
Slide 22: Investment Highlights
Investment Global Worldwide Superior Favorable Diversified Track International TEMPUR-PEDIC® 21 record footprint product secular brand Highlights business of Inc.profitable offering recognition demand modelgrowth trends
Slide 23: Supplemental Information
Supplemental To income The following International TEMPUR-PEDIC® 22 further Company taxis provide benefit aInc.. Information reconciliation believes investors fromthat a favorable excluding useful of GAAP information, state the nettax above income ruling, pro items per forma non-cash share provide n
Slide 24: Reconciliation of GAAP Net Income to Pro Forma
Reconciliation (Amounts Year GAAP Income Stock-based Secondary Loss Proforma Dec. $ 230.97to 0.73 0.07 (0.01) -0.05 0.01 0.02 0.03 1.07 0.82 31, onNet Date Tax debt 2005 2004 Net are public Income provision benefit compensation extinguishment Income per of Net offerring Share) per onIncome per on st
Slide 25: Investor Presentation March 2006
Investor March TPX PRESSURE TEMPUR-PEDIC® SWEDISH Changing LISTED 2006 Presentation the MATTRESSES RELIEVING way NYSE.the worldAND sleeps!TM PILLOWS
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