Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Pedic International — Investor Presentation (September 2006)
23 slides from Somnigroup International's investor presentation, Sep 18, 2006
Slide 1: Investor Presentation September 2006
Investor Presentation September 2006 Exhibit 99.1
Slide 2: Forward-Looking Statements
1 Forward-Looking Statements This presentation may contain “forward-looking statements” which include information concerning the Company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical informat
Slide 3: Tom Bryant, President and CEO
2 Tom Bryant President and CEO
Slide 4: Business Review
Business Review Leading producer of premium mattresses and pillows Proprietary formula and manufacturing process #1 visco-elastic market share Highest profitability in our industry Global sales under the “TEMPUR™” and “Tempur-Pedic™” trademarks Truly international with sales in over 70 countries thr
Slide 5: Seasoned Management Team
4 Seasoned Management Team Consumer Name Position Prior Experience Products Inter'l Tom Bryant CEO & President CEO, Stairmaster Sports & Medical Products President, Dunlop Maxfli Johnson & Johnson (13 years) Dale Williams CFO CFO, Honeywell Control Products CFO, Saga Systems CFO, GE Information Serv
Slide 6: Product Overview
5 Product Overview
Slide 7: Tempur-Pedic Swedish Sleep System
6 Tempur-Pedic Swedish Sleep System Therapeutic Benefits Excellent Pressure & Pain Management Manages pressure over the entire mattress surface Open Cell Technology Unlike water, air and foam products, Tempur material promotes airflow Body Conforming & Support Neck and spine supported in the correct
Slide 8: Diversity Across Products
7 Diversity Across Products 1H06 Sales: $80.2 million (18% of Total) Retail Price: – Adjustable Beds: $1,300 – $2,800 – Other: $35 – $150 1H06 Sales: $57.5 million (13% of Total) Retail Price: $70 – $165 1H06 Sales: $309.8 million (69% of Total) Queen Retail Price Point: $1,199 – $5,499 Pillows Adju
Slide 9: Extending Our Product Line
8 Extending Our Product Line The GrandBed by Tempur-Pedic ™ 7 layer mattress featuring Tempur-HD ™ New level of luxury with silk-blended cover Queen SRP: $5,499 The RhapsodyBed by Tempur-Pedic ™ Features Tempur HD™ - latest formulation Cover features micro-fiber suede sides and TEMPUR-Tex™ Queen SRP
Slide 10: Vertically Integrated Business Model
9 Vertically Integrated Business Model
Slide 11: Manufacturing Facilities
10 Global, vertically integrated manufacturer State of the art, highly automated, ISO-certified plants >$200 million invested Denmark (500K sq ft) Duffield, VA (500K sq ft) Albuquerque, NM (750K sq ft) Manufacturing Facilities Note: New Mexico facility under construction and expected to open by year
Slide 12: Brand Building
11 Brand Building
Slide 13: Overview of the Tempur-Pedic Brand
12 Overview of the Tempur-Pedic Brand An assertively forward-looking image for innovative technology and products that create customers who are enthusiastic and passionate about our products Positioned as a high-tech superior proprietary product with benefits not provided by conventional bedding Dif
Slide 14: Cost Effective Advertising to Build Global Brand
13 > 80 million “impressions” per month > 600 million “impressions” per month Includes national spots on such shows as: The Radio Factor with Bill O’Reilly, Westwood One, Dr. Laura, Dr. Joy Browne and WOR with John Gambling > 900 million “impressions” per month > 2.8 billion “impressions” per month
Slide 15: Continue to Build Global Brand
14 Continue to Build Global Brand ___________________________ Note: Total brand awareness for mattresses based on study commissioned by Tempur-Pedic and completed in the first quarter of each year. Continue to Build Global Brand Total Brand Awareness: 78% up from 60% in two years
Slide 16: Customer Passion
15 Source: Independent survey commissioned by Tempur-Pedic Almost all of our customers have recommended Tempur-Pedic, with about two-thirds reporting that they recommended Tempur-Pedic one to five times. 42% of retail customers report that someone purchased a Tempur-Pedic mattress as a result of the
Slide 17: Retailer Feedback on Tempur-Pedic
16 Retailer Feedback on Tempur-Pedic Tempur-Pedic is the brand with the highest profit margins Brand consumers ask about most Easiest brand to sell Retailers generate significantly more of their total sales from Tempur-Pedic than its relative floor space Retailer Feedback on Tempur-Pedic Tempur-Pedi
Slide 18: Dale Williams, SVP and Chief Financial Officer
17 Dale Williams SVP and Chief Financial Officer
Slide 19: Mattresses Key Growth Driver
$116.8 $156.0 $268.2 $433.3 $566.5 $309.8 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 2004 Mattresses Key Growth Driver Mattress Revenues 2001 2002 2003 Established Accounts + Targeted New Stores Increasing slots per store Growing brand awareness 31% Growth in ‘05 ($ in millions) 2
Slide 20: Growing Net Sales and Profitability
Historical Net Sales Historical Operating Income (1) Growing Net Sales and Profitability $221.5 $298.0 $479.1 $684.9 $836.7 $447.5 $0 $100 $200 $300 $400 $500 $600 $700 $800 Net Sales ($ in millions) $30.4 $39.4 $97.1 $151.0 $190.9 $94.5 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Operating Inc
Slide 21: Cash Flow from Operations
$19.7 $35.1 $47.0 $77.0 $102.2 $86.5 $0 $20 $40 $60 $80 $100 Cash Flow from Operations Operating Cash Flows Growth of operating cash flows Business model generates significant operating cash flows Identified key initiatives to continue to improve cash flow ($ in millions) Note: For a discussion of t
Slide 22: Investment Highlights
Investment Highlights #1 In The Fast Growing Viscoelastic Market #1 In The Premium Mattress Market #1 In The Premium Pillow Market #1 In International Operations of All U.S. Bedding Manufacturers #1 In The Industry For Profitability #1 In U.S. Consumer Referrals for Mattresses #1 In Retail Sales And
Slide 23: Investor Presentation
Investor Presentation September 2006
Tempur Pedic International — Investor Presentation (September 2006) on 6ix