Leggett & Platt, Incorporated · NYSE:LEG

Leggett & Platt — Q1 2020 Earnings Presentation

12 slides from Leggett & Platt's earnings presentation, May 5, 2020

  1. Slide 1: First Quarter Summary Financial Information and COVID-19 Response

    First Quarter Summary Financial Information and COVID-19 Response May 4, 2020 Forward-Looking Statements Statements in this presentation that are not historical in nature are “forward-looking.” These statements are identified either by the context in which they appear or by the use of words such as

  2. Slide 2: Overview and Q1 2020 Financial Highlights

    Overview  Sales decreased 9%, to $1,045 million  Volume was down 9%; exited business -3%  Raw material-related price decreases and currency impact reduced sales 3%  Acquisitions added 3%  Adj. EPS ¹ of $.41, down $.08 vs. adj. EPS ¹ of $.49 in Q1-19  Adj. EBIT ¹ of $93 million, down $12 millio

  3. Slide 3: Q1 2020 Sales & EBIT Bridge; Non-Operating & Taxes

    Q1 2020 Sales & EBIT Bridge Sales: mln $’s % change 1st Qtr 2019 $1,155 Approx volume decline 1 (100) (9%) Approx raw material-related pricing and negative currency impact (37) (3%) Organic Sales (137) (12%) Acquisitions 27 3% 1st Qtr 2020 $1,045 (9%) EBIT: margin Adjusted 1st Qtr 2019 2 $105 9.1% O

  4. Slide 4: Adjusted Working Capital; Debt to Adjusted EBITDA

    Adjusted Working Capital 3/31 12/31 3/31 $’s in millions 2020 2019 2019 Cash & equivalents $506 $248 $263 Accounts receivable, net 568 592 665 Inventories, net 656 637 677 Other current assets 53 62 54 Total current assets 1,782 1,538 1,659 Current debt maturities (51) (51) (51) Current operating le

  5. Slide 5: Cash Flow; COVID-19 Response

    Cash Flow 1st Qtr $’s in millions 2020 2019 Net earnings $46 $61 D&A 47 46 Impairment, write-offs & other 26 8 Other non-cash — 8 Changes in working capital: Accounts receivable (7) (17) Inventory (34) 14 Other current assets (3) (3) Accounts payable (28) (67) Other current liabilities (37) (19) Cas

  6. Slide 6: Responding to Demand Declines; Liquidity Profile

    Responding to Demand Declines  Sales declined rapidly in final two weeks of 1Q  Reduced production and staffing levels to match demand Weekly Sales 140 120 100 Trade Sales ($ millions) Total Company 80 60 Bedding Products 40 Furniture, Flooring & Textile Products 20 Specialized Products 0 11 Liqui

  7. Slide 7: Q1 2020 Segment Summary

    Segments Q1 2020 Segment Summary Q1-20 Q1-20 Q1-20 Organic Sales Adj. EBIT ∆ vs Adj. EBITDA ∆ vs Growth ¹ Margin 2 Q1-19 Margin 2 Q1-19 Bedding Products (15%) 7.8% -130 bps 13.3% -30 bps Specialized Products (11%) 11.8% -180 bps 16.6% -90 bps Furniture, Flooring & Textile Products (7%) 8.3% +260 bps

  8. Slide 8: Segment Sales Q1 2020 vs Q1 2019; Bedding Products

    Segment Sales — Q1 2020 vs Q1 2019 Organic Sales Change 1 January February March 1st Qtr Bedding Products (1.4%) (15.7%) (24.6%) (15.4%) Specialized Products (18.5%) 17.3% (25.2%) (10.8%) Furniture, Flooring & Textile Products (1.0%) 0.8% (16.6%) (6.9%) Total Company (5.4%) (4.1%) (22.4%) (11.9%) 20

  9. Slide 9: Bedding Key Points; Specialized Products

    Bedding – Key Points  Q1 organic sales were down 15%:  Volume was down 11%, primarily from exited volume in Fashion Bed and the closure of a Drawn Wire facility and demand declines in U.S. Spring partially offset by growth in Adjustable Bed  Raw material-related pricing reduced sales 4%  Organic

  10. Slide 10: Specialized Key Points; Furniture, Flooring & Textile Products

    Specialized – Key Points  Q1 organic sales decreased 11%:  Volume was down 9%, primarily from demand declines in Automotive and Hydraulic Cylinders  Currency impact decreased sales 2%  Organic sales trends excluding currency:  Automotive sales decreased 10%  Aerospace sales decreased 3%  Hydr

  11. Slide 11: Furniture, Flooring & Textile Key Points; For Additional Information

    Furniture, Flooring & Textile – Key Points  Q1 organic sales were down 7%:  Volume was down 5%, primarily from lower demand in Work Furniture and Home Furniture  Raw material-related price decreases and currency impact reduced sales 2%  Organic sales trends excluding deflation and currency:  Ho

  12. Slide 12: Non-GAAP Adjustments

    Non-GAAP Adjustments YTD YTD ($ millions, except EPS) Q1-20 Q1-19 2020 2019 Non-GAAP Adjustments ($’s)1 Note impairment 2 8 — 8 — Stock write-off for prior year divestiture 3 4 — 4 — Restructuring-related charges 4 — 6 — 6 ECS transaction costs 5 — 1 — 1 Non-GAAP adjustments (pre-tax $’s) 12 7 12 7

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