Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Pedic International — Investor Presentation (February 2008)
22 slides from Somnigroup International's investor presentation, Feb 19, 2008
Slide 1: Investor Presentation 1Q 2008
Investor Presentation 1Q 2008 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” which include information concerning the Company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical informatio
Slide 3: Overview
Overview Worldwide leader in Premium Sleep , the fastest growing segment of the ~$13 billion wholesale mattress market Global sales under the “Tempur-Pedic®” and “TEMPUR®” trademarks in >70 countries Products provide greater overall comfort and better quality sleep Solid history of growth Most profi
Slide 4: Tempur-Pedic Swedish Sleep System
Tempur-Pedic Swedish Sleep System Pressure & Pain Management – 94% of owners experience a reduction in painful pressure points Open Cell Technology Body Conforming & Support – 92% of owners sleep better and wake more refreshed Safe and Healthy Maintenance Free Source: Independent survey commissioned
Slide 5: Seasoned Management Team
Seasoned Management Team Executive team has ~130 years managing large international businesses Name Position Prior Experience Consumer Products Inter'l Tom Bryant President & CEO CEO, Stairmaster Sports & Medical Products President, Dunlop Maxfli Johnson & Johnson Rick Anderson EVP and President, VP
Slide 6: Global Presence
Global Presence International Subsidiary International Third Party Domestic Subsidiary Domestic Third Party
Slide 7: Domestic Sales
Domestic Sales Healthcare 2% Direct 10% Retail 86% Third Party 2% Mattress 74% Pillow 9% Other 17% 1. Data represents results of full year 2007. Domestic represents ~66% of total sales with long-term growth prospects Products sold through four channels with focus on established retail accounts and n
Slide 8: International Sales
International Sales Direct 3% Healthcare 9% Third Party 11% Retail 77% Mattress 61% Pillow 19% Other 20% International represents ~34% of total sales with long-term growth prospects Products sold through four channels Products designed for unique, regional preferences at European- based R&D center B
Slide 9: Welcome to bed
SS. TEMPUR welcome to bed Changing the way the world sleeps!’
Slide 10: Manufacturing Facilities
Denmark (500K sq ft) Duffield, VA (500K sq ft) Albuquerque, NM (800K sq ft) Manufacturing Facilities Global, vertically integrated manufacturer State of the art, highly automated, ISO- certified plants > $200 million invested Goal: Improve output capacity every year without significant new capital i
Slide 11: Welcome to bed
SS. TEMPUR welcome to bed Changing the way the world sleeps!’
Slide 12: "Welcome To Bed" Marketing Campaign
“Welcome To Bed” Marketing Campaign
Slide 13: Increasing Brand Awareness
Increasing Brand Awareness 86% 78% 73% 60% 44% 26% 20% 30% 40% 50% 60% 70% 80% 90% Awareness % 1. Total Brand Awareness for mattresses based on study commissioned by Tempur-Pedic and completed in the first quarter of each year 2. Advertising and trade expenses FY through 3Q07. For a discussion of th
Slide 14: ~95% Tempur-Pedic consumers recommend the product
Source: Independent survey commissioned by Tempur-Pedic ~95% Tempur-Pedic® consumers recommend the product ~65% of consumers recommended Tempur-Pedic up to 5 times 42% of consumers report someone purchased a Tempur-Pedic mattress as a result of their recommendation Consumer Passion 95% 65% 18% 17% 4
Slide 15: Significant Unit Share Opportunity
Significant Unit Share Opportunity – Only represent ~2.3% of U.S. mattress units (‘07 est.) Slots Very Low Versus % of Retail Sales – Gaining “slots” with new models, key price points Investing in Marketing and Expanding Brand Awareness Targeting Key New Consumer Segments – BellaSonna “Traditionalis
Slide 16: Worldwide Mattress Net Sales
Worldwide Mattress Net Sales Growing brand awareness Excellent profit for retailers Targeted new stores New products Increasing slots per store High volume per slot 1. For a discussion of the Company’s performance, please refer to the Company’s press release for 4Q07 results and the Company’s prior
Slide 17: Worldwide Net Sales
Worldwide Net Sales $222 $298 $479 $685 $837 $1,107 $945 $0 $200 $400 $600 $800 $1,000 $1,200 ($ in millions) Revenue growth led by mattresses Strong growth both Domestically and Internationally Historical growth all organic 1. For a discussion of the Company’s performance, please refer to the Compa
Slide 18: Gross Margin
Gross Margin Channel mix shift has driven gross margin pressure Albuquerque start-up primary margin pressure in 2007 2007 is expected to be the trough year for gross margin 84% 88% 90% 51% 50% 53% 53% 51% 49% 48% 64% 71% 73% 82% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% Domestic Wholesale % Gross Marg
Slide 19: Operating Income & Margins
Operating Income & Margins $30 $41 $97 $244 $151 $191 $209 $0 $50 $100 $150 $200 $250 ($ in millions) Operating leverage offsetting most of the prior Gross Margin erosion Operating Margin will improve with Gross Margin stabilization and growth Opportunities for SG&A leverage over the long term 1. Fo
Slide 20: Capital Expenditures & Cash Flow
$35 $11 $33 $38 $85 $16 $37 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Completed major capital investments Free cash flow opportunities Cash cycle opportunities ($ in millions) Capital Expenditures & Cash Flow Capital Expenditures 1. For a discussion of the Company’s performance, please refer to the Com
Slide 21: Investment Highlights
Investment Highlights #1 In The Fast Growing Viscoelastic Market #1 In The Fast Growing Premium Mattress Market #1 In The Premium Pillow Market #1 In International Operations of U.S. Bedding Manufacturers #1 In The Industry For Profitability #1 In U.S. Consumer Referrals for Mattresses #1 In Retail
Slide 22: 1Q 2008
Investor Presentation 1Q 2008
Tempur Pedic International — Investor Presentation (February 2008) on 6ix