Business
HNI : Investor Presentation December 2025
HNI : Investor Presentation December
About this update from Hni Corporation
HNI Corporation Investor Presentation - December 2025 Investment Thesis Focus on margin expansion in Workplace Furnishings. Strong progress through 2024, with our profit transformation plan, synergies, and productivity offering additional opportunity. Margin Expansion 1 2 Organic Revenue Growth Driving category expansion and market share gains in Residential Building Products. Unmatched breadth/depth advantage as Workplace market evolves. Cash flow profile + balance sheet strength supports growth investment and dividend payments; recent SCS acquisition sets stage for improved profitability and long-term value creation. Financial Strength 4 KII/Mexico synergies expected to yield total savings of $80-85M through '28 ($10-15M in '26) SCS synergies expected to yield savings of $70-$75M through '28 Earnings Visibility 3 CEO Jeff Lorenger: 27 years with HNI, Executive Vice President and CFO V.P. Berger: 28 years with HNI; top five leaders with over 90 years of pertinent industry experience. Seasoned Management 5 3 Company Overview HNI is a manufacturer of commercial furnishings and building products. The company operates under two segments. The workplace furnishings segment is the thought leader in commercial furnishings and the preeminent global designer, innovator, and provider of workplace solutions, going to market under unique brands serving multiple channels and customers. The residential building products segment is the nation's leading manufacturer and marketer of hearth products, which include a full array of gas, electric, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. Segment Revenue Breakdown* Segment Non-GAAP EBITDA Breakdown** HNI Corporation At-A-Glance: Ticker: HNI (NYSE) Market Cap: ~$1.9B (as of October 29, 2025) Enterprise Value: ~$2.2B (as of October 29, 2025) Pro Forma TTM Revenue: $5.85B* Pro Forma TTM Non-GAAP Adj. EBITDA: $618.3M* 2024 Cash Dividends: $63.6MM Five-Year Average Free Cash Flow: $137M (>$3.00/share) Headquarters: Muscatine, Iowa Manufacturing & Distribution: United States, Mexico, Czech Republic, France, Germany, Spain, United Kingdom, China, India, Malaysia *Pro Forma & segment figures include SCS & HNI; most recent publicly reported TTM for both corporations **Segment EBITDA includes SCS & HNI; excludes General Corporate Expense for HNI TTM Workplace Furnishings Revenue Mix* TTM Residential Building Products Revenue Mix 4 Brand History & Overview Workplace Furnishings Residential Building Products HEARTH & HOME TECHNOLOGIES Workplace & Health Kimball Hospitality Fireplace Stove Fireside Hearth & Home STEELCASE Americas International Established 1944 Established 1950, Joined HNI 2023 Established 1908, Joined HNI 2025 Established 1927, Joined HNI 1981 Workplace Furnishings HNI WORKPLACE FURNISHINGS KIMBALL INTERNATIONAL 5 Profitable Growth Strategic Framework While HNI's unique Member-Owner culture remains our foundation, our corporate-wide focus and members' efforts are centered on the following three pillars: #1 Customer 1 st Mindset We are broadening our engagement in and influence of the customer buying journey. We are investing in data analytics, digital marketing, eCommerce capabilities, and market coverage. We are putting ourselves in our customers' shoes, deepening our understanding of what they are looking for, and organizing our efforts to best meet their needs. Our customer-first mindset will allow us to identify and take advantage of new and developing market dynamics. Effortless Winning Experiences Buying office furniture and hearth products can be complicated and time-consuming. Based on our work to understand the customer more deeply, we are making things easier. We have the scale and resources to lead this charge, and we are incorporating technology and digital assets to help customers more quickly and effortlessly navigate the buying process. We are creating effortless winning experiences for those partnering with HNI. Own Operational Excellence All HNI member-owners embrace the principles of lean manufacturing as we always look to find a better, more efficient, and more environmentally friendly approach. Members scrutinize every facet of our business to identify areas of waste and then refine and streamline our approach. You can see this "rapid continuous improvement" (RCI) in action from the manufacturing floor to the administrative offices to our customer interactions. This RCI approach benefits all of our stakeholders as we focus on delivering annual productivity and cost savings, allowing us to grow earnings and invest in our future. 6 Track Record Revenue History Non-GAAP EBITDA History Free cash flow consistently exceeds net income 70 years of continuous dividends Mid-teens median ROIC Free Cash Flow History Dividend History Non-GAAP ROIC History 7 Workplace Furnishings 8 Workplace Furnishings Overview Workplace Furnishings Revenue History Workplace Furnishings EBITDA History HNI is a leading global office furniture company Our brands are among the strongest, most widely known, and most well respected in our industry. The depth and breadth of our products, the scale and capability of our manufacturing, and the strength of our distribution enable us to provide the best office furniture solutions to meet the needs of every customer-from the largest multinational organizations to the local entrepreneur and consumer. Brand positioning SMB (HON) - We are a leading open-line manufacturer of workplace furnishings for small and medium-sized businesses. Our product depth and breadth are unmatched in the space, while our products are among the most widely distributed through more than 600 dealers, distributors, and retailers nationwide. Contract (Allsteel, Gunlocke, and HBF) - Our Contract brands are "designed to do more." We take a human-centric approach, offer versatile designs, and collaborate with our customers to transform workplaces to provide a rewarding experience for all customers, designers, and dealers involved. Kimball International (Kimball and National) - The 2023 addition of Kimball International's brands to our line-up strengthens HNI's Workplace Furnishings' exposure to several important trends and markets-namely, ancillary products, attractive geographies, healthcare, and hospitality. Steelcase - A global design and thought leader in the world of work with a purpose to help the world work better. Along with more than 30 creative and technology partner brands, Steelcase employees research, design and manufacture furnishings and solutions for many of the places where work happens - including offices, homes, and learning and health environments. 9 Diverse Revenue Streams Workplace Furnishings Workplace Furnishings TTM Revenue Mix* Contract nd m ses Small and Medium Businesses Contract Channel HNI Brands Key Competitors Asian Imports Global MillerKnoll Haworth Core, sweet spot Our price point breadth and channel reach are unmatched. More than half of our North American Workplace Furnishings revenue comes from small- and medium-sized businesses. Small a Mediu Busines 10 *Pro Forma figures with SCS, most recent publicly reported TTM for both corporations; all Steelcase revenue is represented in Contract Attention : This is an excerpt of the original content. 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