Sleep Number Corporation · NASDAQ:SNBR
Sleep Number — Select Comfort — Investor Presentation (June 2006)
21 slides from Sleep Number's investor presentation, Jun 6, 2006
Slide 1: Select Comfort Corporation
Select Comfort Corporation Minneapolis, MN
Slide 2: Forward Looking Statements
Statements used in this presentation that relate to future plans, events, financial results or performance areforward-looking statements that are subject to certain risks and uncertainties including, among others, such factors as general and industry economic trends; uncertainties arising from globa
Slide 3: Strength Behind the Numbers
“Strength Behind the Numbers” Bill McLaughlin Chairman & CEO
Slide 4: Positive Industry Dynamics
Consumer Trend Nutrition +Exercise +Sleep Wellness Mattress Unit Shipments (in millions) 1985 2005 Cumulative Average Growth Rates Units Revenues =Health & 5-Year1.6%6.8% 10-Year2.6%7.2% 20-Year2.7%6.8% Source: International Sleep Products Association (ISPA) Positive Industry Dynamics
Slide 5: Select Comfort Profile
Select Comfort Profile Industry disruptor § Product & brand § #1 U.S. bed retailer Advantaged business model § Differentiated product § Few plants (2) § > 90% company controlled § Nationwide delivery Self-funded growth Focus, mission & culture
Slide 6: Unique, Proven Product Differentiated
Unique, Proven Product…Differentiated Personalized comfort and support Benefits proven and appreciated Durable and competitive value
Slide 7: Traditional Business Model
and Traditional Business Model
Slide 8: Advantaged Business Model
Advantaged Business Model Direct-to-consumer Just-in-time manufacturing Low inventory system Cash efficient Focused
Slide 9: Strong Track Record of Growth
ISPA CAGR 6.8% Revenue Growth (in %) Source: International Sleep Products Association (ISPA) and company data 2000 1Q06 (10)% 40% 20% 2005 2004 2003 2002 2001 Strong Track Record of Growth
Slide 10: Consistent Strategies 2001-2006
Consistent Strategies 2001-2006 Awareness Distribution Innovation Leverage Expand People & Systems
Slide 11: Management Expertise
Board of Directors Management Management Expertise
Slide 12: Strong Culture
$0 10% 14% As %Revenue $120 2006E 2001 Media Spending Strong Culture Mission-driven organization Passion for the customer Continuous improvement
Slide 13: Video in Progress
Video in Progress
Slide 14: Strength in Numbers
“Strength in Numbers” Jim Raabe Chief Financial Officer
Slide 15: Leadership Goal
$1.2 B Net Sales 0.9 0.6 0.3 $1.0B 12% 2001 -0.3 Leadership Goal
Slide 16: Leadership Goal: Market Share and Net Sales
< 10% ~ 20% > 20% National Market Share Lead Market Share 2001 $1.2 B Net Sales $1.0B 12% 0.9 0.6 0.3 -0.3 Leadership Goal
Slide 17: Leadership Goal: Net Sales and Operating Margin
-0.3 2001A 2007E $1.2 B Net Sales 2005A $1.0B 12% Operating Margin % 0.9 0.6 0.3 -5% 20% 15% 10% 5% < 10% ~ 20% > 20% National Market Share Lead Market Share Leadership Goal
Slide 18: Self-Funding Growth and Strengthening Balance Sheet
Capital Expenditures (in $millions) Cash and Debt (in $millions) Shares (in millions) Operating Free Cash Flow (in $millions) O/S Buy-back Cash Debt Self-Funding Growth and Strengthening Balance Sheet
Slide 19: Growth Outlook
Sources of Growth Long-Term Guidance Revenue + 15 ~ 20% Earnings + 20 ~ 25% 2006 Guidance Revenue at high-end of L-T target Post-split earnings of $0.91 ~ $0.95 Same Store New Stores Retail Partners New Channels/ Geography Growth Outlook
Slide 20: Select Comfort: Mission and Vision
select im comfort. CREATOR OF THE SLEEP NUMBER’ BED Mission: Improve Lives Through Better Sleep | Vision: To Be A Leader In Sleep |
Slide 21: Select Comfort Corporation
Select Comfort Corporation Minneapolis, MN