Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Q3 2025 Earnings Presentation
52 slides from Somnigroup International's earnings presentation, Nov 6, 2025
Slide 1: NYSE: SGI November 2025
NYSE: SGI November 2025
Slide 2: Somnigroup Investment Thesis
SOMNIGROUP INVESTMENT THESIS Leader in the $120 billion1 global bedding market. Broad, sustainable competitive advantages across iconic brands, capabilities, and scale; industry-leading design and manufacturing capabilities; vertically integrated operations; worldwide omni-channel distribution netwo
Slide 3: About Somnigroup
ABOUT SOMNIGROUP In February 2025, the Company was reimagined, and Somnigroup International Inc. was founded, reflecting the transformative nature of the Mattress Firm acquisition. Somnigroup provides sleep solutions with a portfolio of outstanding businesses with iconic brands. SOMN = sleep OMNI =
Slide 4: Somnigroup's Structure
SOMNIGROUP’S STRUCTURE High-level strategic direction • Corporate governance • Capital allocation Tactical go-to-market strategy • Operational excellence • Passionate customer service 4
Slide 5: Somnigroup
SOMNIGROUP The world’s largest bedding company, dedicated to enriching people’s lives through the power of a great night’s sleep. CONSUMER-CENTRIC DIVERSIFIED MANUFACTURING OMNI-CHANNEL INNOVATION PORTFOLIO & LOGISTICS RETAIL • Advanced R&D • Diverse brand • Global • Leading bedding capabilities dri
Slide 6: Somnigroup
SOMNIGROUP Uniquely positioned to optimize consumer experience Optimize investments in sleep technology Improve targeted innovation Drive advertising share of voice Enhance consumer outcomes Accelerate continuous feedback loop 6
Slide 7: Somnigroup's Vertically Integrated Strategy
SOMNIGROUP’S VERTICALLY INTEGRATED STRATEGY 20,000 associates E-commerce Manufacturing platforms and R&D facilities OPERATIONS FACILITIES SOMNIGROUP Tempur® ECOSYSTEM Distribution WITH retail stores centers Dreams Logistics retail stores fleet RETAIL STORES Mattress Firm retail stores 7
Slide 8: Somnigroup's Journey to Vertical Retailer
SOMNIGROUP’S JOURNEY TO VERTICAL RETAILER DIRECT TO CONSUMER 70% as a percentage of 65% 60% TOTAL SALES 50% 40% 30% 23% 24% 25% 18% 20% 13% 13% 9% 10% 7% 4% 4% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3'25 8
Slide 9: Somnigroup Executive Team
SOMNIGROUP EXECUTIVE TEAM SCOTT THOMPSON CHAIRMAN, CEO CLIFF STEVE JONATHAN BHASKAR DAVID KINDEL KINDRA TOM BUSTER RUSING HIRST RAO MONTGOMERY NUÑO BELLIS MURRAY CEO CEO CEO EVP, CFO EVP, GLOBAL CHRO, GC CIO EVP, CMO BUSINESS DEVELOPMENT 9
Slide 10: Mattress Firm Transaction Rationale
MATTRESS FIRM TRANSACTION RATIONALE 1. Expands consumer touchpoints to enhance ability to keep pace with evolving consumer preferences 2. Accelerates U.S. omni-channel strategy, enabling a seamless consumer experience 3. Simplifies consumer purchase journey, reducing friction at each touchpoint 4. A
Slide 11: Somnigroup's Robust Capital Allocation
SOMNIGROUP’S ROBUST CAPITAL ALLOCATION 5-year track record INVESTMENTS IN GROWTH INITIATIVES CAPITAL RETURNED TO SHAREHOLDERS $800M+ $5.7B3 $1.9B $300M+ 2x-3x invested in our invested in invested in invested in target leverage2 plants and accretive M&A share quarterly range supported processes to ac
Slide 12: Somnigroup's Known Tariff Exposure
SOMNIGROUP’S KNOWN TARIFF EXPOSURE Tempur Sealy 25% $140M $80M $80M $0M TEMPUR SEALY TARIFF IMPACT TARIFF IMPACT PRICE INCREASE TEMPUR SEALY COGS BEFORE AFTER (2% NORTH NET IMPACT EXPOSURE* MITIGATING MITIGATING AMERICA NET ACTIONS ACTIONS SALES)* Mattress Firm TARIFF-RELATED PRICING 36% $30M $0M is
Slide 13: Mattress Firm
MATTRESSFIRM
Slide 14: Overview – Mattress Firm
OVERVIEW – MATTRESS FIRM LEADING OMNICHANNEL U.S. RETAILER 2,200+4 brick-and-mortar retail stores integrated with e- commerce and sleep education platforms to enable a seamless consumer purchase journey STRONG CONSUMER ENGAGEMENT Robust consumer touchpoints with deep insight into evolving preference
Slide 15: Retail Footprint
RETAIL FOOTPRINT • 2,2004+ owned retail stores across 45 states • Integrated e-commerce capabilities with 75M+ website visitors5 annually Geographic Footprint WA ND MT MN ME ID SD WI VT OR MI NH WY NY IA NE MA PA RI OH CT IL IN NJ NV UT CO WV KS MO DE HI KY VA MD CA DC OK TN NC AR AZ NM SC MS AL GA
Slide 16: Mattress Firm's Diversified Product Offerings
MATTRESS FIRM’S DIVERSIFIED PRODUCT OFFERINGS • A leading retailer of Tempur-Pedic®, Sealy®, and Stearns & Foster® branded Somnigroup products Brands and SOMNIGROUP BRANDS Private Label • Retails Sleepy’s® private label bedding manufactured by Tempur Sealy AND PRIVATE LABELS ARE EXPECTED TO REPRESEN
Slide 17: Competitive Differentiators
COMPETITIVE DIFFERENTIATORS SCALE PRODUCT CONVENIENCE RETAIL EXPERTISE SELECTION Seamless experience Highly trained Diverse and curated nationwide on and offline Sleep Experts assortment EXPERIENCE CONSUMER LOGISTICS Personalized to TOUCHPOINTS Accelerated each consumer Data driven tools order-to-de
Slide 18: Sales Growth Outlook
SALES GROWTH OUTLOOK Leverage improving U.S. industry and drive market share Continuously align brick-and-mortar footprint to consumer demand Invest in stores and products to improve consumer shopping experience Drive conversion and AOV through enhanced RSA training Drive e-commerce traffic via stra
Slide 19: Tempur Sealy
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Slide 20: Overview – Tempur Sealy
OVERVIEW – TEMPUR SEALY CORE GEOGRAPHICAL COMPETENCIES CONCENTRATION Consumer-Centric Innovation Leading Product Brands ~70% Domestic PRODUCTS SOLD IN 100+ World-Class Manufacturing COUNTRIES Integrated WORLDWIDE Marketing Extensive Logistics ~30% International Capabilities 20
Slide 21: Competitive Differentiators
COMPETITIVE DIFFERENTIATORS SCALE DIVERSE ICONIC BRANDS PORTFOLIO MANUFACTURING Consumer preferred Extensive capabilities Wide range of price supported by advertising across 70+ plants points and technologies LOGISTICS R&D MARKETING Global integrated Advanced in-house Fully integrated logistics oper
Slide 22: Brand Portfolio
BRAND PORTFOLIO TEMPUR-PEDIC®: LEADING WORLDWIDE PREMIUM BEDDING BRAND Tempur-Pedic® uniquely adapts, supports, and aligns to you to deliver truly life- changing sleep. $2,200-$10,300* STEARNS & FOSTER®: HIGH-END-TARGETED BRAND The world’s finest beds that are made with exceptional materials, time-h
Slide 23: Global Manufacturing Footprint
GLOBAL MANUFACTURING FOOTPRINT 71 manufacturing facilities 4 state-of-the-art product testing locations 20 million sq. ft. of manufacturing and distribution operations 75k sq. ft. R&D innovation Wholly owned (31) Tempur-Pedic® Facility (4) Joint Venture (9) Licensee (27) 23
Slide 24: Successful Omni-Distribution Platform
SUCCESSFUL OMNI-DISTRIBUTION PLATFORM • Third-party retailers are our largest distribution channel TTM 3Q’25 Sales Wholesale • Significant private label opportunity • Valued win-win relationships with retailers INTERNATIONAL DIRECT-TO-CONSUMER 18% • Significant worldwide sales growth INTERNATIONAL W
Slide 25: Key Markets
KEY MARKETS NORTH AMERICA • $50B1 bedding market • Concentrated manufacturing market • Historically strong bedding industry growth, emerging from a prolonged downturn* • Market share leader with continued opportunities to expand through higher slot velocity, expansion into non-traditional channels,
Slide 26: Sales Growth Outlook
SALES GROWTH OUTLOOK Invest in innovation to meet customer demand. Grow wholesale through existing and new retail relationships. Expand into OEM market. Invest in U.S. Sealy and Stearns & Foster® products and marketing. Expand direct-to-consumer through e-commerce and company-owned stores. 26
Slide 27: Dreams
Dreams
Slide 28: Overview – Dreams
OVERVIEW – DREAMS LEADING UK BEDDING RETAILER 200+ brick-and-mortar retail stores, 2,000+ colleagues, and an integrated e-commerce platform attracting over 18M visitors5 annually VERTICALLY INTEGRATED In-house manufacturing, distribution and logistics operations result in Dreams producing and delive
Slide 29: Financials
FINANCIALS 29
Slide 30: Third Quarter Performance
THIRD QUARTER PERFORMANCE Three Months Ended Trailing Twelve Months Ended Q3 ‘25 Sales by Channel* (in millions, except September September September September percentages and per % Change % Change 30, 2025 30, 2024 30, 2025 30, 2024 common share amounts) Net Sales $2,123 $1,300 63.3% $6,816 $4,894
Slide 31: 2025 Outlook
2025 OUTLOOK 6 Expect full-year adjusted EPS2 between $2.60 and $2.75 Projected Adjusted EPS2 CAGR of 18% 2019-2025 $4.00 30 • We expect sales of approximately/slightly ahead of $7.5B at the midpoint Adjusted EPS U.S. Produced Mattress Units • The global bedding industry to decline low to mid- $3.19
Slide 32: 2025 Outlook
2025 OUTLOOK 6 Accounting for Mattress Firm acquisition ACQUISITION AND DIVESTITURE • The acquisition of Mattress Firm on February 5th • The divestiture of 103 Sleep Outfitters and 73 Mattress Firm stores on May 1st • The elimination of intercompany sales between Mattress Firm and Tempur Sealy, whic
Slide 33: Mattress Firm Acquisition Net Synergies
MATTRESS FIRM ACQUISITION NET SYNERGIES 6 Adjusted EBITDA2,3 Impact 2025 2026 2027 Total Sales Synergies $60 $40 - $100 Cost Synergies $15 $50 $35 $100 Total $75 $90 $35 $200 SALES SYNERGIES COST SYNERGIES • Mattress Firm is further aligning their • Expanded scale and vertical integration drive merc
Slide 34: Mattress Firm Acquisition Multiple
MATTRESS FIRM ACQUISITION MULTIPLE Signed 5/9/23 Closed 2/5/25 MFRM 4-Year Adj. EBITDA2,7 Share Price $37.62 Share Price $65.65 High $697 Cash Consideration $2,700 $2,700 Low $401 Stock Consideration $1,287 $2,245 Average $528 Purchase Price $3,987 $4,945 TTM Sep 2025 $382 4yr Avg EBITDA2 $528 $528
Slide 35: Long Term Perspective
LONG TERM PERSPECTIVE 6 2026-2028 Adjusted EPS2 SALES TARGETS1 $6.00 • We are targeting sales to grow at a compound $4.85 annual rate of mid single digits starting in 2026. $4.00 • This indicates adjusted EPS2 would increase $2.68 from the $2.68 midpoint for 2025 to approximately $4.85 by 2028, a co
Slide 36: Strong Balance Sheet & Cash Flow
STRONG BALANCE SHEET & CASH FLOW Full-Year Adjusted EBITDA Full-Year Operating Cash Flow $1,400 $1,000 $1,200 $800 $1,000 $600 $800 $600 $400 $400 $200 $200 $0 $0 2021 2022 2023 2024 TTM 3Q'25 2021 2022 2023 2024 TTM 3Q'25 Leverage 3.50x 3.00x 2.50x 2.00x 1.50x 4Q20 4Q21 4Q22 4Q23 4Q24 4Q25E Target
Slide 37: Capital Structure
CAPITAL STRUCTURE Debt Maturities 2500 • Leverage2 was 3.28x and liquidity was ~$986M as of 9/30/25 • We expect to return to our target leverage 2000 range of 2.0x to 3.0x • In 2026, we intend to begin to allocate 1500 approximately 50 percent of free cash $1,325 flow to capital returns to sharehold
Slide 38: Thank you for your interest in Somnigroup
Thank you for your interest in For more information, please email: investor.relations@somnigroup.com 38
Slide 39: Appendix
APPENDIX 39
Slide 40: Post-Acquisition Mattress Firm Marketing
POST-ACQUISITION MATTRESS FIRM MARKETING Average Third-Party Ad Testing Scores* Mattress Firm Strategic Advertising Shift by Mattress Firm Campaign (Last 7 Years) • Revising Mattress Firm’s advertising strategy is expected to further enhance Somnigroup’s overall marketing effectiveness • We have dev
Slide 41: U.S. Historical Industry Volumes
U.S. HISTORICAL INDUSTRY VOLUMES1 U.S. Produced Mattress Units 25.0 24.3 24.7 7.5% 24.1 24.0 23.5 23.6 23.5 22.5 7.0% 23.0 U.S. Produced Units / U.S. Population 22.0 6.5% U.S. Produced Units (Millions) 20.9 21.0 20.4 20.1 20.0 6.0% 19.0 18.1 18.0 5.5% 18.0 17.0 16.7 5.0% 16.0 15.0 4.5% 2009 2013 201
Slide 42: UBS View - U.S. Mattress Industry Analysis
UBS VIEW - U.S. MATTRESS INDUSTRY ANALYSIS* *Pursuant to this email UBS AG or its affiliate which published the UBS Material ("UBS") grants Somnigroup International ("Client") a royalty free, non-exclusive and non-transferable license to use the extract of the research report set out below (the "UBS
Slide 43: Sustainability Initiatives
SUSTAINABILITY INITIATIVES 2024 Updates Environmental • Progressed towards our goal of achieving carbon neutrality by 2040 through reducing greenhouse gas emissions at our wholly owned manufacturing and logistics operations by 2% compared to the prior year* • Maintained zero waste to landfill status
Slide 44: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This investor presentation contains statements regarding the Company’s expectations future performances, integration of acquired companies with our business (including Mattress Firm), the Company’s quarterly cash dividend, the Company’s expectations regarding geopolitical
Slide 45: Use of Non-GAAP Financial Measures Information
USE OF NON-GAAP FINANCIAL MEASURES INFORMATION In this investor presentation and certain of its press releases and SEC filings, the Company provides information regarding adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, free cash flow, consolidated indebtedness less netted cash, and lever
Slide 46: QTD Adjusted Net Income and Adjusted EPS
QTD ADJUSTED NET INCOME2 AND ADJUSTED EPS2 Three Months Ended (in millions, except per share amounts) September 30, 2025 September 30, 2024 Net income $ 177.4 $ 130.0 Business combination charges (1) 32.2 — Supply chain transition costs (2) 7.3 8.2 Disposition-related costs (3) 1.3 — Transaction cos
Slide 47: TTM Adjusted Net Income and Adjusted EPS
TTM ADJUSTED NET INCOME2 AND ADJUSTED EPS2 Trailing Twelve Months Ended (in millions, except per common share amounts) September 30, 2025 Net income $ 315.2 Acquisition-related costs (1) 114.2 Transaction costs (2) 67.9 Business combination charges (3) 49.8 Customer-related transition charges (4) 26
Slide 48: Adjusted EBITDA
ADJUSTED EBITDA2 Three Months Ended (in millions) September 30, 2025 September 30, 2024 Net income $ 177.4 $ 130.0 Interest expense, net 69.9 30.8 Income taxes 56.2 40.8 Depreciation and amortization 75.5 51.3 EBITDA $ 379.0 $ 252.9 Adjustments: Business combination charges (1) 32.2 — Supply chain t
Slide 49: TTM Adjusted EBITDA
TTM ADJUSTED EBITDA2 Trailing Twelve Months Ended (in millions) September 30, 2025 Net income $ 315.2 Interest expense, net 223.4 Transaction related interest expense, net (1) 16.6 Income tax provision 66.0 Depreciation and amortization 264.2 EBITDA $ 885.4 Adjustments for financial covenant purpose
Slide 50: TTM Adjusted EBITDA
TTM ADJUSTED EBITDA2 (1) In the trailing twelve months ended September 30, 2025, the Company incurred $16.6 million of transaction-related interest expense, net of interest income, related to the Term B Loan drawn and held in escrow. The proceeds of the Term B Loan were released upon the closing of
Slide 51: Leverage Reconciliation
LEVERAGE2 RECONCILIATION (in millions) September 30, 2025 Total debt, net $ 4,625.2 Plus: Deferred financing costs (1) 33.2 Total debt 4,658.4 Less: Netted cash (2) 100.2 Consolidated indebtedness less netted cash $ 4,558.2 (1) We present deferred financing costs as a direct reduction from the carry
Slide 52: Footnotes
FOOTNOTES 1 Management estimates, informed by equity research notes and other industry reports 2 Adjusted net income, EBITDA, adjusted EBITDA, adjusted EBITDA per credit facility, adjusted EPS, leverage, and free cash flow are non-GAAP financial measures. Please refer to the “Use of Non-GAAP Financi
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