Somnigroup International Inc. · NYSE:SGI

Somnigroup International — Tempur Sealy International — Investor Presentation (January 2020)

36 slides from Somnigroup International's investor presentation, Jan 27, 2020

Slide 1: Success is strengthening our Iconic Brands while driving higher ROIC
Tempur Sealy International, Inc. (TPX) “Success is strengthening our Iconic Brands while driving higher ROIC through focused execution” 1 © 2020 Tempur Sealy International, Inc.
Slide 2: Overview
Tempur Sealy International, Inc. (TPX) Overview: • Strong global brands serving all price points • Omni‐channel distribution balanced between wholesale and direct to consumer • Global manufacturing footprint • Structural growth industry, with high ROIC and robust free cash flow • Industry is relativ
Slide 3: Long-term Focused
Long‐term Focused Key initiatives: • Develop the highest quality bedding products in all the markets we serve • Promote our worldwide brands with compelling marketing • Optimize our powerful omni‐channel platform to be where consumers want to shop • Drive increases in EBITDA(1) (1) This financial me
Slide 12: Tempur rated #1 Most Reliable and Highest Customer Satisfaction
Voted 2019BEST FIRM MATTRESS by Tempur rated #1 Most Reliable and #1 Highest Customer Satisfaction by Australian consumers 12 © 2020 Tempur Sealy International, Inc.
Slide 13: 2020 New Products & Sales Initiatives
2020 NEW PRODUCTS & SALES INITIATIVES 13 © 2020 Tempur Sealy International, Inc. © 2020 Tempur Sealy International, Inc.
Slide 14: Advanced Sleep Sensing Powered by Cloud AI
ADVANCED SLEEP SENSING POWERED BY CLOUD AI NONINTRUSIVE & SECURE 14 © 2020 Tempur Sealy International, Inc.
Slide 16: Powerful Omni-Channel Platform
Powerful Omni‐Channel Platform Tempur Sealy’s wholesale business strategy: • grow market share with existing customers • win new business • expand into new channels of distribution Undergoing the largest expansion of doors in the Company’s history 16 © 2020 Tempur Sealy International, Inc.
Slide 17: RetailEdge powered by Tempur Sealy
retailedge POWERED BY TEMPUR SEALY 17 © 2020 Tempur Sealy International, Inc.
Slide 18: 360° RetailEdge shopper-focused solutions
360° RetailEdge provides SHOPPER‐FOCUSED solutions that deliver a CONNECTED and PERSONALIZED experience across all phases of the purchase journey. 18 © 2020 Tempur Sealy International, Inc.
Slide 20: Powerful Omni-Channel Platform
Powerful Omni‐Channel Platform  Largest pillar of world‐wide distribution Wholesale  In process with significant distribution gains DTC  Significant worldwide revenue growth Web  Highly profitable and expanding gross margins DTC Company  Luxury showroom experience Owned  Significant worldwide
Slide 21: Tempur Retail Store Footprint
Tempur Retail Store Footprint New Manhattan Store in Bloomberg Building Opening June 2020 21 © 2020 Tempur Sealy International, Inc.
Slide 22: Company-Owned North American Store Strategy
Company‐Owned North American Store Strategy High‐End Targeted Opportunity Broad Based Opportunity – Strategic Representation Sleep Outfitters®: o Regional bedding retailer that is strategically important to the markets it serves for Tempur Sealy o Store count: 97 o Tempur, Sealy and Stearns & Foster
Slide 23: Winning Online: Traditional Retail and DTC
Winning Online: Traditional Retail and DTC TempurPedic.com Most profitable online bedding company in the world High growth and high margins Alternative Channels (Web‐based Retailers) Dedicated sales team with focus on eMarketplace sales growth High growth and stable margins Traditional Retailers Onl
Slide 24: Direct to Consumer
Direct to Consumer • Distribution network made up of high growth, high Global Direct Revenue margin, Web, Call Center, and Company‐owned stores $120 • Strong growth within the direct channel, growing 62% $100 in the third quarter of 2019 $80 • Long‐term direct target: 25% of consolidated net sales $
Slide 26: Complimentary Product Strategy
Complimentary Product Strategy Tempur Sealy has historically competed in Branded Bedding Majority of Revenues and Profits Opportunity with Non‐Branded Bedding Incremental Revenues and Profits 26 © 2020 Tempur Sealy International, Inc.
Slide 27: Strength Together
Strength Together ® • Strong balance sheet and cash flow • Historically solid profitability • Best in class supply agreement and logistics • Exceptional, seasoned management • Iconic brands and consumer preferred • Efficient operating model for making entry products level, high velocity products • P
Slide 28: Sherwood Bedding Company
Sherwood Bedding Company  Background: Sherwood is a top 10 US bedding manufacturer primarily focused on private label and OEM bedding with 4 plants across the US. In addition, Sherwood produces branded products for certain customers.  Financial Overview: Annualized wholesale revenues estimated to
Slide 29: Transaction Overview: Sherwood Bedding Acquisition
Transaction ‐ On January 24, 2020, Tempur Sealy International entered into an agreement to acquire 80% ownership Acquisition ‐ The transaction will be structured as a cash purchase of approximately $40 Overview Details million or about 4x EBITDA(1) ‐ An experienced management team is responsible for
Slide 30: 2019 A Year in Review
2019 A Year in Review Announced that we were Completed the launch of the all‐ Focused on executing the largest expanding our distribution with a new line of Tempur‐Pedic products expansion of new doors in the new supplier agreements Company's history Many other workstreams were ongoing through 2019
Slide 31: 2020 Commentary
2020 Commentary The Company expects to provide full year financial guidance during the fourth quarter earnings call in February 2020. In advance of this, the Company has provided the following comments on 2020. The Company expects a favorable bedding market in the U.S. In addition to this, the Compa
Slide 32: Thank you for your interest in Tempur Sealy International
Thank you for your interest in Tempur Sealy International For more information please email: investor.relations@tempursealy.com 32 © 2020 Tempur Sealy International, Inc.
Slide 34: Environmental, Social, and Governance
Environmental, Social, and Governance Tempur Sealy is committed to protecting and improving our environment and communities. • In 2018, 72% of our North American facility waste was recycled • 16,066 barrels of oil, 51,152 trees, 16,070,577 KW hours, 3,009 tons of CO2, 21,062,772 gallons of water Env
Slide 35: Aspirational Program
Aspirational Program(1)  The Company has an Aspirational Program which is a unique long‐term program designed to provide extraordinary compensation for extraordinary performance. The Company seeks to accomplish these goals in a way that rewards performance that is aligned with its stockholders’ int
Slide 36: Forward-Looking Statements
Forward‐Looking Statements This investor presentation contains statements that may be characterized as "forward‐looking" within the meaning of the federal securities laws, which includes information concerning one or more of the Company's plans, guidance, objectives, goals, strategies, and other inf

Tempur Sealy International — Investor Presentation (January 2020) on 6ix

Somnigroup International — Tempur Sealy International — Investor Presentation (January 2020)

Slide 1: Success is strengthening our Iconic Brands while driving higher ROIC

Slide 2: Overview

Slide 3: Long-term Focused

Slide 4: Brands & Products

Slide 5: 5 © 2020 Tempur Sealy International, Inc.

Slide 6: 6 © 2020 Tempur Sealy International, Inc.

Slide 7: 7 © 2020 Tempur Sealy International, Inc.

Slide 8: 8 © 2020 Tempur Sealy International, Inc.

Slide 9: Voted 2019 Best Firm Mattress

Slide 10: 10 © 2020 Tempur Sealy International, Inc.

Slide 11: 11 © 2020 Tempur Sealy International, Inc.

Slide 12: Tempur rated #1 Most Reliable and Highest Customer Satisfaction

Slide 13: 2020 New Products & Sales Initiatives

Slide 14: Advanced Sleep Sensing Powered by Cloud AI

Slide 15: 15 © 2020 Tempur Sealy International, Inc.

Slide 16: Powerful Omni-Channel Platform

Slide 17: RetailEdge powered by Tempur Sealy

Slide 18: 360° RetailEdge shopper-focused solutions

Slide 19: Omni-Channel

Slide 20: Powerful Omni-Channel Platform

Slide 21: Tempur Retail Store Footprint

Slide 22: Company-Owned North American Store Strategy

Slide 23: Winning Online: Traditional Retail and DTC

Slide 24: Direct to Consumer

Slide 25: Market Update

Slide 26: Complimentary Product Strategy

Slide 27: Strength Together

Slide 28: Sherwood Bedding Company

Slide 29: Transaction Overview: Sherwood Bedding Acquisition

Slide 30: 2019 A Year in Review

Slide 31: 2020 Commentary

Slide 32: Thank you for your interest in Tempur Sealy International

Slide 33: Appendix

Slide 34: Environmental, Social, and Governance

Slide 35: Aspirational Program

Slide 36: Forward-Looking Statements