Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Tempur Pedic International — Investor Presentation (October 2006)
26 slides from Somnigroup International's investor presentation, Oct 24, 2006
Slide 1: Investor Presentation October 2006
Exhibit 99.1 Investor Presentation October 2006
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: Business Review
2 Business Review Leading producer of premium mattresses and pillows Proprietary formula and manufacturing process #1 visco-elastic market share Highest profitability in our industry Global sales under the “TEMPUR®” and “Tempur-Pedic®” trademarks Truly international with sales in over 70 countries t
Slide 4: Seasoned Management Team
3 Seasoned Management Team Name Position Prior Experience Tom Bryant CEO & President CEO, Stairmaster Sports & Medical Products President, Dunlop Maxfli Johnson & Johnson (13 years) Dale Williams CFO CFO, Honeywell Control Products CFO, Saga Systems CFO, GE Information Services; (15 years at GE) Mat
Slide 5: Product Overview
4 Product Overview
Slide 6: Tempur-Pedic Swedish Sleep System Therapeutic Benefits
5 Tempur-Pedic Swedish Sleep System® Therapeutic Benefits Excellent Pressure & Pain Management Manages pressure over the entire mattress surface Open Cell Technology Unlike water, air and foam products, TEMPUR® material promotes airflow Body Conforming & Support Neck and spine supported in the corre
Slide 7: Diversity Across Products
6 Diversity Across Products 9M06 Sales: $121.9 million (18% of Total) Retail Price: – Adjustable Beds: $1,300 – $2,800 – Other: $35 – $150 9M06 Sales: $87.5 million (12% of Total) Retail Price: $70 – $165 9M06 Sales: $479.1 million (70% of Total) Queen Retail Price Point: $1,199 – $5,499 Pillows Adj
Slide 8: Vertically Integrated Business Model
7 Vertically Integrated Business Model
Slide 9: Manufacturing Facilities
8 Global, vertically integrated manufacturer State of the art, highly automated, ISO-certified plants >$200 million invested Denmark (500K sq ft) Duffield, VA (500K sq ft) Albuquerque, NM (750K sq ft) Manufacturing Facilities Note: New Mexico facility under construction and expected to open by year
Slide 10: Sleep In The News
9 Sleep In The News
Slide 11: Sleep In The News
10 Sleep In The News Don’t lose sleep buying the perfect mattress –By Janice Lieberman “Companies try to help workers sleep more” Sleep, Snoring and the Blues –By SANJAY GUPTA Sleep Deprivation: New Concerns; Four More Studies Show It Harms Health Who Needs Sleep? When the gods of sleep have deserte
Slide 12: U.S. Sleep Aid Industry Estimated To Be >$3B Annually
11 Sleep In The News Note: U.S. Sleep Aid Industry annual market size estimate based on management estimates and publicly available industry estimates for prescription and over-the-counter sleep aids. Sleep In The News U.S. Sleep Aid Industry Estimated To Be >$3B Annually … And Growing! Tempur-Pedic
Slide 13: ap PEORPeDIC.
ap PEORPeDIC.
Slide 14: Slide 14
Slide 15: Slide 15
Slide 16: Better Mattress... Better Sleep!
12 Better Mattress … Better Sleep! “Sleep in the News” is Fueling Consumer Interest and Involvement in Sleep Related Products and Categories This is having an impact on all consumers, but especially Baby-Boomers Current Shift to Premium and Specialty Bedding Validates the Higher Level of Involvement
Slide 17: Brand Building
13 Brand Building
Slide 18: Overview of the Tempur-Pedic Brand
14 Overview of the Tempur-Pedic® Brand An assertively forward-looking image for innovative technology and products that create customers who are enthusiastic and passionate about our products Positioned as a high-tech superior proprietary product with benefits not provided by conventional bedding Di
Slide 19: Cost Effective Advertising to Build Global Brand
15 > 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 20: Continue to Build Global Brand
16 Continue to Build Global Brand ___________________________ Note: Total brand awareness for mattresses based on study commissioned by Tempur-Pedic and completed in the first quarter of each year. Continue to Build Global Brand Total Brand Awareness: 78% up from 60% in two years
Slide 21: Customer Passion
17 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 th
Slide 22: Mattresses Key Growth Driver
$116.8 $156.0 $268.2 $433.3 $566.5 $479.1 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 2004 Mattresses Key Growth Driver Mattress Revenues 2001 2002 2003 Established Accounts + Targeted New Stores Increasing slots per store Growing brand awareness 31% Growth in ’05 ($ in millions) 2
Slide 23: Growing Net Sales and Profitability
Historical Net Sales Historical Operating Income (1) Growing Net Sales and Profitability $221.5 $298.0 $479.1 $684.9 $836.7 $688.5 $0 $100 $200 $300 $400 $500 $600 $700 $800 Net Sales ($ in millions) $30.4 $39.4 $97.1 $151.0 $190.9 $148.2 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Operating In
Slide 24: Cash Flow from Operations
$19.7 $35.1 $47.0 $77.0 $102.2 $133.1 $0 $20 $40 $60 $80 $100 $120 $140 Cash Flow from Operations Operating Cash Flows Growth of operating cash flows Business model generates significant operating cash flows Identified key initiatives to continue to improve cash flow ($ in millions) Note: For a comp
Slide 25: Investment Highlights
Investment Highlights #1 In The Fast Growing Viscoelastic Market #1 In The Premium Mattress Market #1 In The Premium Pillow Market #1 In International Operations of All U.S. Bedding Manufacturers #1 In The Industry For Profitability #1 In U.S. Consumer Referrals for Mattresses #1 In Retail Sales And
Slide 26: Investor Presentation
Investor Presentation October 2006
Tempur Pedic International — Investor Presentation (October 2006) on 6ix