Millerknoll, Inc. · NASDAQ:MLKN
Millerknoll — Herman Miller — Baird Global Industrial Conference 2020
20 slides from Millerknoll's conference presentation, Nov 10, 2020
Slide 1: Design for the Good of Humankind
NASDAQ: MLHR Design for the Good of Humankind Baird Global Industrial Conference November 10, 2020 Jeff Stutz, Chief Financial Officer Kevin Veltman, Vice President – Investor Relations & Treasurer
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This information contains forward-looking statements These statements do not guarantee future performance and portfolio transformation, our ability to attract and retain key within the meaning of Section 27A involve certain risks, uncertainties, and assumptions that are ex
Slide 3: Company Snapshot
COMPANY SNAPSHOT Headquarters: FY20 Revenue: $2.49B Omni-Channel Zeeland, MI, USA FY20 Adj. Operating distribution model – Over 700 contract dealers in 110 countries Founded: 1905 Income: $206M Employees: ~7,600 – 38 Retail studios – Multiple global e-commerce storefronts FY20 Revenue Mix North Amer
Slide 4: Unlock the Power of One Herman Miller: Herman Miller Group
STRATEGIC PRIORITIES: UNLOCK THE POWER OF ONE HERMAN MILLER Herman Miller Group A collection of leading brands 4
Slide 5: Our Diversified Portfolio: Ten Years Ago and Today
STRATEGIC PRIORITIES: UNLOCK THE POWER OF ONE HERMAN MILLER Our Diversified Portfolio Ten Years Ago Today Geiger Maharam Nemschoff Geiger Nemschoff Premium Premium Maars naughtone DWR Herman Miller Herman Miller CBS CBS HAY Level Level Entry Entry Commercial “Resimercial” Residential Commercial “Res
Slide 6: Situation Analysis
SITUATION ANALYSIS Digital Disruption Rise Of Direct-to-consumer Safe and Healthy Working Business Models Conditions Changes In Where & How Environmental, Social, and Focus on Home People Work Governance Imperative Environments 6
Slide 7: C-Suite perspectives on the office and distributed work
SITUATION ANALYSIS Recent C-Suite perspectives align with our research that the office remains a critical element of distributed work “It’s a much harder way to work for anything that requires a personal “I think going back to work is a good thing. I think there are negatives to relationship…I think
Slide 8: Operating from a Position of Strength
SITUATION ANALYSIS Operating from a Position of Strength Broad Product Assortment Multi-Channel Distribution Workplace Knowledge and Research 8
Slide 9: Four Strategic Priorities
STRATEGIC PRIORITIES Our strategy is centered around four strategic priorities Unlock The Power of One Build a Customer-Centric, 1 Herman Miller 2 Digitally-Enabled Business Model Reinforce Our Commitment Accelerate To Our People, Our Planet, Profitable Growth 3 4 & Our Communities 9
Slide 10: Unlock the Power of One Herman Miller
STRATEGIC PRIORITIES 1 Unlock the Power of One Herman Miller Objectives: Build an agile, collaborative, globally-connected Simplify and tailor our go-to-market approach Continue to lead in Product and Innovation organization fit for continuous evolution 10
Slide 11: Build a Customer-Centric, Digitally-Enabled Business Model
STRATEGIC PRIORITIES 2 Build a Customer-Centric, Digitally-Enabled Business Model Objectives: Leverage deep understanding of customer journeys to Drive step-change in our data, analytics, Strengthen our core technology backbone deliver inspired products and frictionless customer marketing, and brand
Slide 12: Accelerate Profitable Growth
STRATEGIC PRIORITIES 3 Accelerate Profitable Growth Objectives: Continued leadership in North America Drive outsized growth in International Transform our Retail business Contract business 12
Slide 13: People, Planet, and Communities
STRATEGIC PRIORITIES 4 People, Planet, and Communities Objectives: Build, develop, and retain world-class talent Shape an inclusive and diverse ecosystem Elevate Our Better World Commitment 13
Slide 14: Strong track record of financial performance
FINANCIAL OUTLOOK Strong track record of financial performance 5 yr. organic revenue growth of 3.3% Robust EPS and free cash flow generation over past 5 years Revenue Adjusted EPS Free Cash Flow (1) ($ billions) ($ millions) $3.0 $3.50 $180 $160 $2.5 $3.00 $2.6 $2.5 $2.97 $140 $153 $2.4 $2.3 $2.3 $2
Slide 15: Disciplined capital allocation approach
FINANCIAL OUTLOOK Disciplined capital allocation approach focused on value creation 3. Strong & Flexible 4. Capital Returns 1. Support Growth 2. Targeted M&A Balance Sheet To Shareholders SHARE DIVIDENDS ($ millions) CAPEX R+D Q1 FY21 ($ millions) REPURCHASE Investments in M&A, 160 including naughto
Slide 16: Focused acquisition and partnership strategy
FINANCIAL OUTLOOK Focused acquisition and partnership strategy FY10 FY12 FY13 FY15 FY16/FY20 FY19 FY19/FY20 Strategic Rationale Audience ✓ ✓ ✓ Channel ✓ ✓ ✓ Geography ✓ ✓ ✓ ✓ Product ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 16
Slide 17: Opportunity for continued revenue growth over next five years
FINANCIAL OUTLOOK Opportunity for continued revenue growth over the next five years Revenue Core Industry 2-3% New Products and Initiatives 1-2% Retail Growth 1-2% Estimated Annual Organic Revenue Growth * 4-7% * Assumed to be through an economic cycle 17
Slide 18: Operating income growth of 2x to 2.5x organic revenue growth
FINANCIAL OUTLOOK Operating income growth of 2x to 2.5x the rate of organic revenue growth Structurally higher operating margins driven by: — Growth in high margin product categories — Digital transformation — Retail growth and optimization — Scale advantages — Profit improvement initiatives 18
Slide 19: Driving Value Creation
FINANCIAL OUTLOOK Driving Value Creation Distinct Capabilities Clear strategic priorities Strong track record of financial performance and compelling outlook 19
Slide 20: Slide 20
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