Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Sealy International — Investor Presentation (January 2025)
42 slides from Somnigroup International's investor presentation, Jan 24, 2025
Slide 1: Tempur Sealy International, Inc. (TPX)
We continue to demonstrate the resilience of our business model by generating healthy profits, investing in our business and returning capital to shareholders, while consistently enhancing our competitive position. - Scott Thompson, Chairman & CEO TEMPUR SEALY INTERNATIONAL, INC., TPX “ “ 1
Slide 2: Investment Thesis
History of market share gains across global omnichannel distribution Seasoned, well-aligned management with proven track record Legacy of strong value creation via capital allocation including share buybacks and acquisitions The leading vertically integrated global bedding company with iconic brands
Slide 3: Tenured Leadership Team
U.S. Market International Markets Tenured Leadership Team >195 YEARS COMBINED TPX EXPERIENCE 17 YEARS AVERAGE TPX TENURE Shared Services Scott Thompson Chairman, President & CEO Bhaskar Rao EVP, CFO Cliff Buster CEO, North America Diana Strickland SVP, Human Resources Kindra Bellis SVP, CIO David Mo
Slide 4: Experienced Team's Value Creation
Experienced Team’s Value Creation Since management change in 2015, sales have increased 55%, adjusted EBITDA2 has increased over 80%, and adjusted EPS2 has increased over 200% under current leadership Current TPX Management Track Record Since 2015 (in millions, except percentages, multiples, and per
Slide 5: Experienced Team's Value Creation: TPX Share Price
Experienced Team’s Value Creation Since management change in 2015, the TPX stock has increased almost 350% under current leadership 5 $- $20 $40 $60 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TPX Share Price History January 2015 to January 2025
Slide 6: Award-Winning Products Spanning Key Retail Price Points
Award-Winning Products Spanning Key Retail Price Points VALUE PREMIUM $1,800 – $6,450 $2,200 – $9,998 $300 – $3,000 Private Label *Retail prices for a standard queen mattress 6
Slide 7: World-Class Manufacturing Capabilities
World-Class Manufacturing Capabilities 33 NORTH AMERICAN FACILITIES | 38 INTERNATIONAL FACILITIES 7 Leading Manufacturing Capabilities • 71 manufacturing facilities • 20 million square feet of manufacturing & distribution operations R&D Innovation • 75,000 square feet of research & development • 4 s
Slide 8: Successful Global Omni Distribution Platform
Successful Global Omni Distribution Platform • Significant worldwide sales growth • Highly profitable and rapidly expanding • Direct customer relationships Ecommerce • Luxury Tempur-Pedic®, Dreams, and multi-branded showroom experiences • Operate over 750 stores worldwide and expanding direct custom
Slide 9: Portfolio of Global Brands
Portfolio of Global Brands • From its founding, Tempur-Pedic pursued a direct advertising strategy that touted the clear benefits of its proprietary Tempur material, creating a luxury aura – generating strong same sales velocity in premium products. • Over the last 15 years, Tempur-Pedic spent ~$2.5
Slide 10: North American Omnichannel Distribution
North American Omnichannel Distribution Wholesale E-commerce Owned Retail Stores OEM Alternative Channels Consumers THIRD PARTIES • Costco • Sam's Club • Wayfair • Amazon 10
Slide 11: America's #1 Mattress Brand
AMERICA’S #1 MATTRESS BRAND 11
Slide 12: Sealy – Largest Launch in Brand History
Sealy® – Largest Launch in Brand History • Sealy Posturepedic® is celebrating its 75th anniversary in 2025 • It is built on a heritage of “better back support” • Our 2025 launch will be the largest in brand history • Our launch is focused on Elevating and Differentiating Posturepedic to win in the “
Slide 13: Sealy Posturepedic – Exclusive Coil Technology
Sealy Posturepedic® – Exclusive Coil Technology Better Comfort & Conformance Adaptive, Deep-Down Support Posturepedic Support System Posturepedic Plus Support System Posturepedic Pro Support System • Patent-pending, proprietary coil system • Exclusively engineered in-house by Sealy R&D • Designed to
Slide 14: Sealy Posturepedic – New Product Portfolio
Sealy Posturepedic® – New Product Portfolio Posturepedic SRP $799 - $999 • PrecisionFit™ Coil Posturepedic Plus SRP $999 - $1,199 • PrecisionFit™ Coil • Durafle® Edge Posturepedic Pro SRP $1,299 - $1,499 • PrecisionFit™ Coil with MaxSupport™ • Duraflex® Edge • Cool-to-Touch Cover Posturepedic Elite
Slide 15: Sealy Posturepedic – Marketing Investments
Supporting the brand with a compelling new ad campaign – “Bed Aches™” • “Bed Aches” creative highlights how Posturepedic uniquely solves nagging aches and pains caused by poor mattresses • Our new creative leverages TSI’s proven problem-solution messaging approach • Record media investment is planne
Slide 16: Tempur-Pedic Has Now Received 10 J.D. Power Awards
Tempur-Pedic Has Now Received 10 J.D. Power Awards, Reflecting our Commitment to Excellence & Customer Satisfaction Since J.D. Power launched its Mattress Satisfaction Study in 2015, Tempur-Pedic® has received 10 J.D. Power awards for both In-Store and Online satisfaction, more than any other mattre
Slide 17: Tempur-Pedic: Most-Awarded Brand in J.D. Power Study
… and Making Tempur-Pedic® the MOST-AWARDED BRAND in the history of the J.D. Power U.S. Mattress Satisfaction Study (2017 – 2024)3 17
Slide 18: Tempur-Pedic – Deep, Undisturbed Sleep
Snoring Trouble Falling Asleep Aches and Pain Hot Sleep • Consumers continue to prioritize sleep as part of their overall health and wellness focus • Tempur continues to invest in innovation, focused on improving sleep routines and outcomes • Consistent, high-investment marketing supports four disti
Slide 19: Tempur-Pedic – Leader in Aches and Pain Solutions
Tempur-Pedic® – Leader in Aches and Pain Solutions • Aches and Pain is the #1 consumer unmet need • New Adapt collection successfully launched in 2024 • Highest price point in the collection – LuxeAdapt® delivering double digit growth LuxeAdapt® complements Breeze to drive +$4,000 tickets 19
Slide 20: Tempur-Pedic – Leader in Climate Solutions
Tempur-Pedic® – Leader in Climate Solutions ActiveBreeze® will expand distribution in 2025 • Fourth generation Tempur-Breeze® collection with improved climate benefits launched in 2023 • In 2024, ActiveBreeze launched as halo product at +$10,000 price point and is performing at 2X velocity expectati
Slide 21: Tempur-Pedic – Advanced Automatic Snore Response and Relaxation Benefits
• Tempur-Ergo® Smart Bases powered by Sleeptracker-AI® deliver best-in-class Sleep Coaching and Snore Response • In 2025 we will build upon our current Relaxation benefits through a partnership with Calm to further help consumers calm their mind and fall asleep Tempur-Pedic® – Advanced Automatic Sno
Slide 22: Operations
Operations TEMPUR#*SEALY 2
Slide 23: Operational Initiatives: Sourcing
Operational Initiatives Leveraging Scale to Drive Cost Efficiency and Optionality Through Sourcing Ongoing competitive RFQ efforts to derive savings from key inputs - springs, textiles, foam and chemicals Expanding supply chains globally to increase competition among suppliers and provide enha
Slide 24: Operational Initiatives: Logistics Productivity
Operational Initiatives Driving logistics productivity across Tempur Sealy’s fleet, ocean transportation and warehousing Further optimization of Tempur Sealy’s transportation fleet, reducing usage of third-party carriers Routing/scheduling optimization to lower fleet miles – cost and environme
Slide 25: International Markets – TEMPUR Brand
25 International Markets – TEMPUR Brand
Slide 26: International Markets – TEMPUR Brand Overview
26 International Markets – TEMPUR Brand Overview TEMPUR sold in 90+ countries • 22 countries served through wholly owned subsidiaries, the rest by third- party distributors Selling wholesale via furniture and bedding retailers and direct via own stores and online channels Key markets include Germany
Slide 27: International Markets – Market Opportunities
27 International Markets – TEMPUR Brand Market Opportunities Economic conditions have been subdued, and the global outlook remains uncertain Tempur has been driving growth and market share across the regions Substantial growth opportunities in all our markets Specifically in our key markets and Chin
Slide 28: International Markets – Historical Strategy & Performance
28 International Markets – TEMPUR Brand Historical Strategy & Performance • Focus on price points above $3,000 • Investments within narrow boundaries • Highly complex and individualized SKUs, and therefore highly complex and individualized manufacturing process Go-Forward Strategy • Continue to grow
Slide 29: International Markets – Go Forward Strategy
29 International Markets – Go Forward Strategy Product Distribution Marketing Manufacturing
Slide 30: International Markets – Wholesale
30 International Markets – Wholesale John Lewis & Partners XXXLutz Harvey Norman Bensons for Beds Snooze Beter Bed Höffner El Corte Inglés Drømmeland Grand Litier
Slide 31: International Markets – Own Stores
31 International Markets – Own Stores
Slide 32: International Markets – Online
32 International Markets – Online
Slide 33: International Markets
International Markets * ——_ ee: Neel TEMPUR “y é ae ce TEMPUR#*SEALY 33
Slide 34: Dreams – Leading Specialty Bed Retailer in the United Kingdom
34 Dreams Leading Specialty Bed Retailer in the United Kingdom As a multi-branded retailer, Dreams sells a variety of products across a range of price points. In addition to operating over 200 brick-and-mortar stores and an e-commerce channel throughout the U.K., Dreams also manufacturers the majori
Slide 35: Third Quarter and Trailing Twelve Month Performance
Third Quarter and Trailing Twelve Month Performance Three Months Ended Trailing Twelve Months Ended (in millions, except percentages and per common share amounts) September 30, 2024 September 30, 2023 % Change September 30, 2024 September 30, 2023 % Change Net Sales $1,300.0 $1,277.1 1.8% $4,893.5 $
Slide 36: Environmental, Social, & Governance
Environmental, Social, & Governance 36
Slide 37: Investment Thesis
History of market share gains across global omnichannel distribution Seasoned, well-aligned management with proven track record Legacy of strong value creation via capital allocation including share buybacks and acquisitions The leading vertically integrated global bedding company with iconic brands
Slide 38: Thank you for your interest in Tempur Sealy International
For more information, please email: investor.relations@tempursealy.com Thank you for your interest in Tempur Sealy International SOVA 38
Slide 39: Forward-Looking Statements; Use of Non-GAAP Financial Measures
Forward-Looking Statements Use of Non-GAAP Financial Measures 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
Slide 40: Adjusted Net Income and Adjusted EPS (QTD and TTM)
QTD Adjusted Net Income2 and Adjusted EPS2 *For a reconciliation net income to adjusted net income and adjusted EPS in prior reporting periods, please refer to the Company’s SEC filings. TTM Adjusted Net Income2 and Adjusted EPS2 40
Slide 41: TTM Adjusted EBITDA and Leverage Reconciliation
TTM Adjusted EBITDA2 *For a reconciliation net income to EBITDA and Adjusted EBITDA in prior reporting periods, please refer to the Company’s SEC filings. Leverage2 Reconciliation *For a reconciliation of leverage to consolidated indebtedness less netted cash in prior reporting periods, please refer
Slide 42: Footnotes
1 Management estimates, informed by equity research notes and other industry reports. 2 Adjusted net income, EBITDA, adjusted EBITDA, adjusted EPS, leverage, and free cash flow are non-GAAP financial measures. Please refer to the “Use of Non-GAAP Financial Measures Information” on a previous slide f
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