Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Q2 2025 Earnings Presentation
51 slides from Somnigroup International's earnings presentation, Aug 7, 2025
Slide 1: Somnigroup
6 SOMNIGROUP NYSE: SGI
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: The world's largest bedding company
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: Uniquely positioned to optimize consumer experience
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 as a percentage of 70% TOTAL SALES 66% 60% 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 Q2'25 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 PRESIDENT CEO EVP, CFO EVP, GLOBAL CHRO 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 CAPITAL RETURNED GROWTH INITIATIVES 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% $120M $60M $60M PRICE $0M TEMPUR TEMPUR TARIFF IMPACT TARIFF IMPACT AFTER INCREASE SEALY NET SEALY COGS BEFORE MITIGATING (2% NORTH IMPACT EXPOSURE* MITIGATING ACTIONS AMERICA NET 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 OMNI-CHANNEL COMPETENCIES DISTRIBUTION Consumer-Centric Innovation ~55% Wholesale Leading Product Brands PRODUCTS SOLD IN 100+ World-Class Manufacturing ~20% Intercompany Sales to Mattress Firm COUNTRIES Integrated WORLDWIDE Marketing ~25% Direct-to-Consumer Extensive Lo
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 2Q’25 Sales Wholesale • Significant private label opportunity INTERNATIONAL • Valued win-win relationships with retailers DIRECT-TO-CONSUMER 17% INTERNATIONAL WHOLESALE • Significant worldwide sale
Slide 25: Key Markets
KEY MARKETS NORTH AMERICA • $50B1 bedding market • Concentrated • 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, and growing DTC prese
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: Second Quarter Performance
SECOND QUARTER PERFORMANCE Three Months Ended Trailing Twelve Months Ended Q2 ‘25 Sales by Channel* (in millions, except June 30, June 30, June 30, June 30, percentages and per % Change % Change 2025 2024 2025 2024 common share amounts) Net Sales $1,881 $1,234 52.5% $5,993 $4,871 23.1% 34% Net Incom
Slide 31: 2025 Outlook
2025 OUTLOOK 6 Expect full-year adjusted EPS2 between $2.40 and $2.70 Projected Adjusted EPS2 CAGR of 16% $4.00 2019-2025 30 Adjusted EPS U.S. Produced Mattress Units • We expect sales of approximately $7.4B at the $3.19 midpoint $3.00 U.S. Produced Units (Millions) $2.60 $2.55 $2.55 25 • The global
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 Sale Synergies $40 $60 - $100 Cost Synergies $15 $50 $35 $100 Total $55 $110 $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 June 2025 $377 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 2025. $4.00 • This indicates adjusted EPS2 would increase from the $2.55 midpoint for 2025 to $2.55 approximately $4.85 by 2028, a co
Slide 36: Strong Balance Sheet & Cash Flow
STRONG BALANCE SHEET & CASH FLOW Full-Year Adjusted EBITDA2 Full-Year Operating Cash Flow $800 $1,200 $1,000 $600 $800 $600 $400 $400 $200 $200 $0 $0 2021 2022 2023 2024 TTM 2Q'25 2021 2022 2023 2024 TTM 2Q'25 Leverage2 3.50x 3.00x 2.50x 2.00x 1.50x 4Q20 4Q21 4Q22 4Q23 4Q24 4Q25E Target Range Levera
Slide 37: Capital Structure
CAPITAL STRUCTURE Debt Maturities 2500 • Leverage was 3.56x and liquidity was 2 ~$805M as of 6/30/25 2000 • We expect to return to our target leverage range of 2.0x to 3.0x and for share 1500 $15 $1,425 repurchases to be minimal over the next 12 months, to return to active share 1000 repurchase ther
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: Sustainability Initiatives
SUSTAINABILITY INITIATIVES 2023 Updates Environmental • Achieved zero waste to landfill status at our Canadian and Mexican manufacturing operations and maintained our zero waste to landfill status at our U.S. and European manufacturing operations • Achieved zero waste to landfill status at 75% of ou
Slide 43: 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 44: 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 45: QTD Adjusted Net Income and Adjusted EPS
QTD ADJUSTED NET INCOME2 AND ADJUSTED EPS2 Three Months Ended (in millions, except per share amounts) June 30, 2025 June 30, 2024 Net income $ 99.0 $ 106.1 Business combination charges (1) 17.6 — Loss on disposal of business (2) 13.9 — Disposition-related costs (3) 9.2 — Transaction costs (4) 4.9 7.
Slide 46: 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) June 30, 2025 Net income $ 267.8 Acquisition-related costs (1) 114.2 Transaction costs (2) 82.5 Customer-related transition charges (3) 26.7 Business combination charges (4) 17.6 Tr
Slide 47: Adjusted EBITDA
ADJUSTED EBITDA2 Three Months Ended (in millions) June 30, 2025 June 30, 2024 Net income $ 99.0 $ 106.1 Interest expense, net 72.5 33.4 Income taxes 3.2 34.0 Depreciation and amortization 69.1 50.6 EBITDA $ 243.8 $ 224.1 Adjustments: Business combination charges (1) 17.6 — Loss on disposal of busine
Slide 48: TTM Adjusted EBITDA
TTM ADJUSTED EBITDA2 Trailing Twelve Months Ended (in millions) June 30, 2025 Net income $ 267.8 Interest expense, net 184.3 Transaction related interest expense, net (1) 16.6 Income tax provision 50.6 Depreciation and amortization 240.0 EBITDA $ 759.3 Adjustments for financial covenant purposes: Ac
Slide 49: TTM Adjusted EBITDA
TTM ADJUSTED EBITDA2 (1) In the trailing twelve months ended June 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 the M
Slide 50: Leverage Reconciliation
LEVERAGE2 RECONCILIATION (in millions) June 30, 2025 Total debt, net $ 4,916.7 Plus: Deferred financing costs (1) 34.9 Total debt 4,951.6 Less: Netted cash (2) 98.1 Consolidated indebtedness less netted cash $ 4,853.5 (1) We present deferred financing costs as a direct reduction from the carrying am
Slide 51: 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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