Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Sealy International — Investor Presentation (May 2021)
25 slides from Somnigroup International's investor presentation, May 27, 2021
Slide 1: Tempur Sealy International, Inc.
© 2021 Tempur Sealy International, Inc.1 Tempur Sealy International, Inc. (NYSE: TPX) Pictured above: Tempur-Pedic flagship store, 58th and Third Avenue, Manhattan, NY
Slide 2: Who We Are
© 2021 Tempur Sealy International, Inc.2 WHO WE ARE As a global leader in the design, manufacture and distribution of bedding products, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award
Slide 3: Industry, Consumer and Value Creation Drivers
© 2021 Tempur Sealy International, Inc.3 Industry • Stable and growing global bedding industry of ~$50 billion(1) • U.S. market is concentrated and grows mid-single digits annually, driven by units and dollars(1) • International is highly fragmented and about the size of the U.S. market(1) • TPX pro
Slide 4: Our Position and Q1 2021 Results
© 2021 Tempur Sealy International, Inc. o Established worldwide omni-channel presence o Iconic brand and product portfolio o World-class manufacturing capabilities o Industry-leading balance sheet and free cash flow(3) Our Position: 4 Three Months Ended March 31st 2021 2020 Reported % Change % Chang
Slide 5: Current Update
© 2021 Tempur Sealy International, Inc. o Targeting Q2’21 Sales Growth of approximately 60% compared to Q2’19 o Driven by growth in demand for Tempur-Pedic products in the U.S. o Consumer demand remains strong and broad-based o Further increases the Company’s backlog o Anticipates demand outlook is
Slide 6: Worldwide Omni-Channel
© 2021 Tempur Sealy International, Inc. © 2021 Tempur Sealy International, Inc. 6 Worldwide Omni-Channel
Slide 7: Powerful Omni-Distribution Platform
© 2021 Tempur Sealy International, Inc. Powerful Omni-Distribution Platform Company Owned Stores Wholesale E-Commerce ➢ Third-party retailers are our largest distribution channel ➢ Significant OEM opportunity ➢ Significant worldwide sales growth ➢ Highly profitable and expanding rapidly ➢ Luxury Tem
Slide 8: Success Online Through Our Wholesale and Direct Channels
© 2021 Tempur Sealy International, Inc. 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 Online
Slide 9: Wholesale
© 2021 Tempur Sealy International, Inc.9 Wholesale • Strong worldwide distribution and broadly diversified • Over 5,400 retail partners around the world selling through over 25,000 doors and their e-commerce platforms • Global TPX sales force of over 500 people supporting our portfolio of brands Thi
Slide 10: Direct to Consumer
© 2021 Tempur Sealy International, Inc. $- $20 $40 $60 $80 $100 $120 $140 $160 $180 Q1 2019 Q1 2020 Q1 2021 Global Direct Sales Intl NA Direct to Consumer • High growth and high margin sales from web, call center, and company-owned stores • Strong growth within the direct channel, growing 62% in the
Slide 11: U.S. Company-Owned Store Strategy
© 2021 Tempur Sealy International, Inc. Sleep Outfitters® U.S. 11 Company-Owned Store Strategy TEMPUR® Europe Tempur-Pedic® U.S. SOVA® SwedenSealy Gallery Asia Tempur-Pedic® Mexico Operating over 400 retail stores globally
Slide 12: International Markets
© 2021 Tempur Sealy International, Inc. International Markets 12 • Highly fragmented with broad geographic diversity across Europe and Asia • Developing new TEMPUR® line of mattresses to expand addressable market in 2022 • Tempur Sealy customizes go to market approach by country • Europe – success w
Slide 13: Family of Brands and Capabilities
© 2021 Tempur Sealy International, Inc. 13 Product Brands Mattresses / Pillows / Accessories Retailer Brands Online / Offline Manufacturing Branded / OEM Family of Brands and Capabilities (4)
Slide 14: Dreams Acquisition
© 2021 Tempur Sealy International, Inc. © 2021 Tempur Sealy International, Inc. 14 Dreams Acquisition(4)
Slide 15: Leading Specialty Bed Retailer in the UK
© 2021 Tempur Sealy International, Inc.15 Leading Specialty Bed Retailer in the UK • Successful multi-channel sales strategy • Operates over 200 brick and mortar retail locations, an industry-leading online channel, as well as manufacturing and delivery assets More About Dreams • Markets served: Uni
Slide 16: Strategic Rationale
© 2021 Tempur Sealy International, Inc.16 Combines Tempur Sealy Global Leadership with UK’s Leading Specialist Bed Retailer • Diversifies global sales and creates leading position in the UK • Vertical integration expected to create meaningful synergies • Expands retail competency and online capabili
Slide 17: Consideration & Closing
© 2021 Tempur Sealy International, Inc.17 Consideration & Closing • The transaction price is approximately $475 million, less net debt and any working capital deficit • The transaction is expected to close in the third quarter of 2021, subject to receipt of regulatory approval from the UK Financial
Slide 18: Thank you for your interest in Tempur Sealy International
© 2021 Tempur Sealy International, Inc. Thank you for your interest in Tempur Sealy International For more information please email: investor.relations@tempursealy.com 18
Slide 19: Appendix
© 2021 Tempur Sealy International, Inc. Appendix © 2021 Tempur Sealy International, Inc. 19
Slide 20: Forward-Looking Statements
© 2021 Tempur Sealy International, Inc. This investor presentation contains statements relating to the Company's quarterly cash dividend, the Company's share repurchase targets, the Company's expectations regarding net sales for 2021, adjusted EBITDA for 2021, and adjusted EPS for 2021 and subsequen
Slide 21: Use of Non-GAAP Financial Measures and Constant Currency Information
© 2021 Tempur Sealy International, Inc. Use of Non-GAAP Financial Measures and Constant Currency 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 per cred
Slide 22: Adjusted EBITDA Reconciliation
© 2021 Tempur Sealy International, Inc. Adjusted EBITDA Reconciliation © 2021 Tempur Sealy International, Inc. 22
Slide 23: Adjusted Net Income and Adjusted EPS
© 2021 Tempur Sealy International, Inc. Adjusted Net Income and Adjusted EPS 23
Slide 24: Free Cash Flow and Free Cash Flow / Adjusted EBITDA Reconciliation
© 2021 Tempur Sealy International, Inc. Free Cash Flow and Free Cash Flow / Adjusted EBITDA Reconciliation 24 *For a reconciliation of adjusted EBITDA per credit facility to net income for reporting periods in the years 2016-2021, please refer to the Company’s SEC filings.
Slide 25: Footnotes
© 2021 Tempur Sealy International, Inc. Footnotes 1. Management estimates 2. Sealy was ranked number one on Furniture Today's list of the Top 20 U.S. Bedding Producers in June 2020. See Furniture Today's Top 20 U.S. Bedding Producers methodology that includes SEALY® and STEARNS & FOSTER® products in
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