Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Pedic International — Investor Presentation (November 2005)
24 slides from Somnigroup International's investor presentation, Nov 18, 2005
Slide 1: Investor Presentation November 2005
Investor Presentation November 2005
Slide 2: Forward-Looking Statements
1 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 informat
Slide 3: Bob Trussell, Chief Executive Officer
2 Bob Trussell Chief Executive Officer
Slide 4: Business Review
3 Business Review Leading producer of premium mattresses and pillows Proprietary formula and manufacturing process #1 visco-elastic market share Global sales under the “TEMPUR™” and “Tempur-Pedic™” trademarks 43.4% CAGR in the four years ending December 31, 2004 Sales in 60 countries through 4 diver
Slide 5: Business Strategy
4 Drive new store growth of the U.S. and International Furniture & Bedding channels Continue to increase slots per door Continue penetration of the healthcare channel Drive awareness of Tempur and Tempur-Pedic brands through targeted marketing and advertising campaigns Direct response advertising ge
Slide 6: Diversity Across Products
5 Diversity Across Products 3Q05 YTD Sales: $104.2 million (16.8% of Total) Retail Price: – Adjustable Beds: $1,300 – $2,800 – Other: $35 – $150 3Q05 YTD Sales: $92.9 million (15.0% of Total) Retail Price: $70 – $165 3Q05 YTD Sales: $424.0 million (68.3% of Total) Queen Retail Price Point: $1,199 –
Slide 7: Attractive Industry Growth Dynamics
6 U.S. Mattresses and Foundations Attractive Industry Growth Dynamics 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1982 1985 1988 1991 1994 1997 2000 2003 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Units Shipped Dollar Value Dollar Value (mm’s) Units Shipped (000’s) _____
Slide 8: Tempur-Pedic Addresses Fastest Growing Segment
7 Tempur-Pedic Addresses Fastest Growing Segment U.S. market segments: Over $1,000 24% $500 – $1,000 41% Under $500 35% Tempur-Pedic’s addressable market: $3.6 billion The premium market grew 36% in 2004 $5.6 Billion U.S. 2004 Market by Segment Over $1,000 $500 - $1,000 Under $500 Tempur-Pedic’s Add
Slide 9: Robust Retail Channel Growth
8 Robust Retail Channel Growth U.S. Furniture Retail Net Sales & Store Count ($ in millions) Sales to established accounts: expect 20-25% growth in 2005 Average floor slots per store increased from 1.7 to 2.2 in 2004, up to 2.8 in 3Q05 Total doors targeted in U.S.: 10,000 Overall U.S. mattress marke
Slide 10: Recent U.S. Mattress Introductions
9 Recent U.S. Mattress Introductions The OriginalBed by Tempur-Pedic ™ Significantly expands addressable market Fills important price gap in premium category Queen SRP: $1,199 Shipping as of September ’05 28% Account Penetration as of 9/30/05 The EuroBed by Tempur-Pedic ™ Brought to U.S. following g
Slide 11: The Scandinavian Bed Collection by Tempur-Pedic
10 The Scandinavian Bed Collection by Tempur-Pedic™ Unique bed system: Tempur-Pedic mattress, foundation and adjustable frame Designed for the Nordic region; very successful launch Began broader European rollout mid ’05; exceeding expectations Demonstrates our continued investment in product innovat
Slide 12: New Pillow Introductions
11 New Pillow Introductions Domestic Travel-size ComfortPillow by Tempur-Pedic ™ Fills need as airlines eliminate pillows Shipping November ’05 - Holiday shopping SRP: $80 International September 2005 re-launch in Japan New Japan-specific packaging and formulation Follows successful futon roll-out N
Slide 13: Dale Williams, SVP and Chief Financial Officer
12 Dale Williams SVP and Chief Financial Officer
Slide 14: Mattresses Key Growth Driver
13 $79.3 $116.8 $156.0 $268.2 $433.3 $424.0 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2004 2000 Mattresses Key Growth Driver Mattress Revenues 2001 2002 2003 New stores Increasing slots per store Growing brand awareness 39% Growth 3Q05 YTD ($ in millions) 9M05 Mattresses Key Growth Driver New s
Slide 15: Cost Effective Advertising to Build Global Brand
14 > 80 million “impressions” per month > 600 million “impressions” per month Includes national spots on such shows as: The Radio Factor with Bill O’Reilly, Westwood One, Dr. Laura, Dr. Joy Browne and WOR with John Gambling > 900 million “impressions” per month > 2.8 billion “impressions” per month
Slide 16: Continue to Build Global Brand
15 Continue to Build Global Brand Continue to Build Global Brand Clear, product-oriented advertising and credible consumer industry endorsement communicate the Tempur-Pedic proposition
Slide 17: Customers Recommend Tempur-Pedic
16 Source: Independent survey commissioned by Tempur-Pedic Almost all of our customers have recommended Tempur-Pedic, with about two-thirds reporting that they recommended Tempur-Pedic one to five times. 42% of retail customers report that someone purchased a Tempur-Pedic mattress as a result of the
Slide 18: Growing Net Sales and Profitability
17 Historical Net Sales Historical Operating Income (1) Growing Net Sales and Profitability $162.0 $221.5 $298.0 $479.1 $684.9 $621.1 $0 $100 $200 $300 $400 $500 $600 $700 Net Sales ($ in millions) $22.4 $30.4 $39.4 $97.1 $151.0 $136.8 $0 $20 $40 $60 $80 $100 $120 $140 $160 Operating Income ________
Slide 19: Growing Earnings and Cash Flows
18 ___________________________ 1. GAAP EPS of $0.50 for 9M04 and $0.67 for 9M05 for a 34% GAAP 9M YTD growth 42% Growth Pro-Forma EPS Operating Cash Flows Growing Earnings and Cash Flows $55.7 $79.1 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 ($ in millions) 9M04 9M05 32% Growth $0.57 $0.75 $0.00 $0.10 $
Slide 20: Recent Financial Accomplishments
19 Recent Financial Accomplishments $80M Share Repurchase Plan Announced our first repurchase plan effective October 20, 2005 New Global Senior Credit Facility $340M comprised of $200M U.S. revolver, $30M European revolver and $110M European 5-year term loan Approximately 100 basis point reduction i
Slide 21: Investment Highlights
20 Investment Highlights Global brand recognition Superior product offering Favorable secular demand trends Diversified business model Track record of profitable growth Investment Highlights Global brand recognition Superior product offering Favorable secular demand trends Diversified business model
Slide 22: Supplemental Information
21 Supplemental Information To further provide investors useful information, pro forma net income per share is presented and represents the Company's GAAP net income per share before income tax expense on repatriation of foreign dividend of $6.5 million for the nine months ended September 30, 2005.
Slide 23: Reconciliation of Net Income per Share to Pro forma Net Income per Share
22 Reconciliation of Net Income per Share to Pro forma Net Income per Share ___________________________ 1. Amounts presented represent the Company's GAAP net income per share before income tax provision on repatriation dividend of $0.06 for the nine months ended September 30, 2005 and non-cash stock
Slide 24: Investor Presentation
Investor Presentation November 2005
Tempur Pedic International — Investor Presentation (November 2005) on 6ix