Leggett & Platt Incorporated: Company Update March 2026

March 2026

LEG (NYSE)

https://www.leggett.com

Leggett at a Glance

A diversified manufacturer that designs and produces a broad variety of engineered components and products

Strong competitive positions with

broad customer base

• Few large competitors

• Large addressable markets

  Solid operating cash flow

• Long history of strong cash generation to support investment in our business and shareholder returns

  Prioritizing balance sheet health

• Investment grade credit rating

• Long-term leverage target of 2.0x Net Debt to Adjusted EBITDA

  Engaged management team

  Focused on improving long-term

  profitability

• Deep company knowledge and understanding of our diverse portfolio of businesses

• Commitment to sustainability through our people, our products, and our processes

• Restructuring plan substantially complete and operational efficiency improvements continue

  2

  
  
  

  At a Glance: Diverse Portfolio

  Product Mix

  (based on 2026 estimated net trade sales)

  Geographic Split

  (based on production)

  Bedding 39%

  Automotive 21%

  Hydraulic Cylinders 5%

  China 10%

  Canada 7%

  Mexico 5%

  Others 3%

  Work Furniture 7%

  Home Furniture 6%

  Europe 15%

  U.S. 60%

  Flooring & Textiles 22%

  3

  At a Glance: Segments

  Bedding Products

  Specialized Products

  Furniture, Flooring & Textile Products

  39% of 2026e net trade sales 26% of 2026e net trade sales 35% of 2026e net trade sales

  Components

  • Mattress springs

  • Specialty bedding foams

  • Semi-finished mattresses

  • Drawn steel wire

  • Steel rod

    Finished Products

  • Private label compressed mattresses

  • Mattress toppers and pillows

  • Adjustable beds

  • Foundations

  Automotive

  Seating Comfort

  • Auto seat support and lumbar systems

    In-Car Motion Systems

  • Motors, actuators, and cables

    Hydraulic Cylinders

  • Engineered hydraulic cylinders primarily for material handling, transportation, and heavy construction equipment

    Home Furniture

  • Recliner mechanisms

  • Seating and sofa sleeper components

    Work Furniture

  • Chair controls, bases, frames

  • Private label finished seating

    Flooring Products

  • Carpet cushion

  • Hard surface underlayment

    Textile Products

  • Textile converting

  • Geo components

4

At a Glance: Macro Market Exposure

Over time, sustained improvement in key economic factors will drive multi-year recovery for our residential businesses which have remained well below average cycle levels

Key Economic Indicators

Automotive 20%

Commercial/ Industrial 30%

Consumer Durables 50%

• Total housing turnover

  • Combination of new and existing home sales

• Consumer confidence

  • "Large ticket" purchases are deferrable

• Consumer discretionary spending

• Interest rates

• Employment levels

5

Tariff Considerations

We expect tariffs to continue to be a net positive for Leggett

Benefits

• Domestic steel tariffs have led to expanded metal margins

• Most products are region for region; our products are largely manufactured and sold within the same region

Potential Opportunities

↑ Well positioned to serve customers desiring domestically produced products

Cost Mitigation Strategies

• Sourcing product domestically or from alternative lowest total cost countries

• Shifting production to take advantage of our global footprint

• Passing along price increases where necessary

• Heightened sensitivity on inventory management

  Potential Risks

  ↓ Rise in inflation in the near term

  ↓ Decline in consumer confidence

  ↓ Decrease in consumer demand

  ↓ Disruptions to global supply chains

  6

  
  
  

  Strategic Priorities

  Balance Sheet Strength

  Long-Term Profitable Growth

  Margin Improvement

  • Prioritizing long-held financial strength

  • Disciplined capital allocation strategy

  • Optimizing operations and G&A cost structure

  • Executed restructuring plan

  • Operational efficiency improvement initiatives

  • Positioning for profitable growth opportunities in Bedding, Automotive, and Textiles

    Our actions will allow us to navigate the challenging near-term environment and position us for long-term success

    7

    Disciplined Capital Allocation Strategy

    A balanced approach focused on driving shareholder value

    STRATEGIC PRIORITIES:

    Balance Sheet Strength

    • Upholding long-held balance sheet strength and continuing to invest in our businesses

      Near-Term Focus: ✓ Targeting long-term Net Debt to Adjusted EBITDA ratio of 2.0x

      For 2026, we plan to use most of our excess cash flow to reduce net debt, while also considering other uses such as small strategic acquisitions and share repurchases.

      ORGANIC GROWTH

      Long-Term Priorities

      • Investing in our businesses for the future

      • Robust innovation pipeline

        STRATEGIC ACQUISITIONS

        • Primarily opportunities complementing our existing portfolio of businesses

          SHAREHOLDER RETURNS

          • Dividends

          • Opportunistic share repurchases

            8

            
            
            

            Restructuring Initiatives

            2024 Accomplishments

            Bedding Products

            STRATEGIC PRIORITIES:

            Margin Improvement

  • Reduced footprint by 14 locations (10 in U.S. Spring, 3 in Specialty Foam, 1 in Adjustable Bed)

    • Consolidated all domestic innerspring production into 4 remaining locations

    • Exited Mexican innerspring operation

  • Downsized Chinese innerspring operation

  • Sold 2 properties

    Furniture, Flooring & Textile Products

  • Closed 1 facility in Home Furniture

  • Closed 1 facility in Flooring Products and substantially completed Phase 1 of Flooring Products restructuring

    Specialized Products

  • Initiated Hydraulic Cylinders restructuring

    Corporate

  • Reduced G&A cost structure

2025 Accomplishments

Bedding Products

• Divested a small U.S. machinery business

• Sold 4 properties

• Largely completed Specialty Foam restructuring

  • Consolidated 1 Specialty Foam production facility

    Furniture, Flooring & Textile Products

• Completed Phase 1 and substantially completed Phase 2 of Flooring Products restructuring

  • Consolidated 2 Flooring Products production facilities

• Sold 1 property

  Specialized Products

• Completed manufacturing efficiency improvement activities in Hydraulic Cylinders

  • Right-sized our Hydraulic Cylinders plant in the UK

9

Restructuring Plan Financials

STRATEGIC PRIORITIES:

Margin Improvement

Sales Attrition2

2024 Actuals

$15m

Q4 2024

$8m

Q4 2025

$13m

2025

Incremental1

$38m

2025

Actuals

$53m

Full Plan Run Rate Estimates

~$60m

EBIT Benefit

$22m

$12m

$17m

$41m

$63m

~$70m

2024 Actuals

Q4-25

2025 Actuals

Total Plan Estimates

Cash from Real Estate

$20m

$6m

$28m

$70-$80m

Restructuring and Restructuring-Related Costs

$48m

$19m

$30m

~$80m

Cash Non-cash

$30m

$18m

$1m

$18m

$9m

$21m

~$40m

~$40m

1 Incremental represents the YOY change in sales attrition and EBIT benefit

2 2025 includes $12m from the divestiture of a small U.S. machinery business in our Bedding Products segment 10

2026 Guidance

Issued 2/11/26 and not updated since

• Sales: $3.8-$4.0 billion; down 1% to 6% versus 2025

  • 2025 divestitures to reduce sales by 3%

  • Volume is expected to be flat to down low-single digits

  • Volume at the midpoint:

    • Down low-single digits in Bedding Products Segment

    • Down low-single digits in Specialized Products Segment

    • Flat in Furniture, Flooring & Textile Products Segment

  • Raw material-related price increases and currency benefit combined is expected to increase sales low single digits

• Adjusted EPS: $1.00-$1.20

  • At the midpoint, increase versus 2025 due primarily to operational efficiency improvements, disciplined cost management, favorable sales mix, and full year benefit of metal margin expansion that started in Q2 2025, partially offset by lower volume

• Implied adjusted EBIT margin of 6.3%-7.0%

• Operating cash flow $225-$275 million

11

Bedding Products Strategy

1. Grow content through semi-finished products and private label finished mattresses

   STRATEGIC PRIORITIES:

   Long-Term Profitable Growth

2. Defend attractive market share and pursue profitable volume opportunities, where available

3. Focus on strategic partnerships and market-leading innovation across product lines

We are focused on driving content and value, supported by further integration of our specialty foam and innerspring technologies

Open Coil

ComfortCore®

Quantum ® Edge

Semi-Finished

Hybrid Mattress

Increasing Value and Content

~8x AUSP increase from open coil innersprings to hybrid mattresses

12

Domestic Bedding Market Trends

Demand declined 20% from 2021 to 2025, but domestic production declined 35% due to continued import market share growth

US Mattress Consumption1

(millions of units)

Domestic Imports

Growth in domestic foam mattress production has also reduced the addressable market for our legacy innerspring products

Domestic Mattress Production1

(millions of units)

Domestic Hybrid/Innerspring Domestic Foam/Other

40 Peak

35

30

25

20

15

10

5

0

2014 2019 2021 2025

40

35

30

25 Peak

20

15

10

5

0

2014 2019 2021 2025

1 Management estimates, informed by company research, industry reports, and USITC import data.

Import mattresses heavily skew towards foam, lower price points, and non-master bedrooms

13

Leggett Bedding Products Trends

Consumer preference changes have led to declines in open coil and box springs, and our strategy has shifted to focus more on content gains through ComfortCore®, including semi-finished products

US Spring Product Mix1

(Units)

Grids Open Coil ComfortCore

100%

80%

60%

The 2019 acquisition of Elite Comfort Solutions expanded our addressable market to include specialty foam and finished private label mattresses

Specialty Foam Product Mix2

(Sales)

Foam Components Mattresses Accessories

100%

80%

60%

40%

20%

0%

40%

20%

0%

2014 2019 2025

2019 2025

Historically, the ECS customer base was heavily weighted towards digitally native mattress brands, which have experienced outsized declines in the recent demand downturn

1 Grids are the steel components sold to OEM customers for box spring production.

2 Accessories include pillows and mattress toppers 14

Bedding Products Value Chain

Our innerspring and specialty foam value chains, industry-leading product innovation, and ability to supply components to private label finished mattresses are the foundation of our strategy and enable us to serve our customers with unmatched quality and exceptional, differentiated solutions

We melt scrap steel to form steel rod, send rod to our wire mills to produce drawn wire, and then send wire to our innerspring manufacturing locations to be coiled using internally designed and manufactured wire-forming machines

We develop polyols and chemical additives used to enhance the properties of foam, we pour and fabricate foam to use in mattresses and bedding accessories, and we produce finished private label mattresses, often incorporating innersprings in hybrid mattress designs

15

Bedding Products Innovation

We're proud of our long history of driving product innovation in the mattress industry and we're still finding ways to solve customer problems with consumer comfort in mind

CombiCore®

• Saves mattress manufacturers production time and labor

• Eliminates non-value-added commodity base foam

• Sustainable solution for customers

• Incorporates Eco-Base® and Quantum® Edge technologies

• Endless combinations of specialty foam paired with ComfortCore® innersprings offers customers differentiation options

• Consumers enjoy enhanced air flow and supportive motion isolation

• Super slow-release memory foam provides a differentiated foam option for OEM partners

• Plush, luxurious feel with a breathable, open-cell structure

• Provides heat and moisture dissipation with incredible durability

  16

  
  
  

  Automotive Strategy

  1. Innovate next generation seating comfort products utilizing product expertise

     STRATEGIC PRIORITIES:

     Long-Term Profitable Growth

  2. Strengthen OEM and Tier 1 relationships through increased customer intimacy and collaborative problem solving

  3. Grow our in-car motion systems including motor and actuator content in existing applications and explore additional automotive applications

  • Reinvigorate North American OEM relationships

  • Cultivate relationships with Chinese OEMs

  • Adopting new sustainability goals that are in line with industry standards

    Priorities

  • Strengthen pneumatic lumbar position

  • Improve cost position through automation and vertical integration

  • Evaluate potential footprint changes needed as industry evolves

    • Enhance our position as a preferred supplier of mechanical lumbar

    • Integrate immersive technologies into products

      17

      Automotive Market Trends

      Industry Outlook Leggett Outlook

      North America	North America
      Asia (Greater China)	Asia (Greater China)
      Asia (Japan & South Korea)	Asia (Japan & South Korea)
      Europe	Europe

      • Program delays and potential cancellations resulting from slower ICE to EV transitions

      • Consumer affordability issues

      • Inflationary pressures due to tariff driven price increases

      • Volume remains pressured

      • USMCA & industry shift toward regional supply chains support share retention & offer additional opportunities

      • NEV incentives reduced, causing some near-term headwinds

      • Expect continued growth of exports to Europe and India

      • Pursuing growth among Chinese OEMs, especially with newer EV-focused OEMs

      • Revenue is expected to benefit from FX in 2026

      • Chinese OEMs continue to take market share from multinational OEMs, including Japanese and Korean automakers, leading to production declines and program delays

      • Regional volume stable, while we gain ground via increased demand among targeted local customers

      • Favorable content mix

      • Revenue is expected to benefit from FX in 2026

      • Economic softness and consumer affordability issues

      • Chinese OEMs continue to take share from multinational OEMs, leading to production declines and program delays

      • Strategic, regional growth targets opportunities among Chinese OEMs localizing in EU, as well as new & incumbent business

      • Favorable content mix

      • Revenue is expected to benefit from FX in 2026

      Leggett Sales

      (geography of end consumption)

      Europe

      Asia

      North America

      18

      
      
      

      Automotive Innovation

      Our products align with long-term consumer preferences trending towards greater comfort and convenience

      Seating products are designed to enhance

      consumer comfort, from entry level to luxury

      vehicles

      In-car motion systems including actuators and

      motors deliver differentiated consumer convenience and safety features

      Mid-Class Luxury Massage

      Power Liftgate Actuator

      Advanced/ Vibration Massage

      Smart Latch Actuator

      CP5 Mechanical Lumbar

      We excel in developing customized solutions for customer-specific applications

      BLDC Motors

      19

      Textiles Strategy

      1. Leverage purchasing volumes across Geo Components and Fabric Converting for a total cost advantage

         STRATEGIC PRIORITIES:

         Long-Term Profitable Growth

      2. Pursue opportunities to serve new and attractive markets utilizing core capabilities

      3. Capture growth opportunities via acquisitions that complement existing products and geographies

      Geo Components Priorities

      • Target organic growth through geographic expansion and targeted portfolio expansion

      • Strengthen competitive position in Canada

      • Expand wallet share with retail accounts through product line expansion and omnichannel opportunities

        Fabric Converting Priorities

      • Complete product development and testing required for medical applications

      • Grow market share in specialty markets (i.e. filtration, building products, automotive, packaging)

      • Capitalize on recovery in hospitality market

        • Closely monitor acquisition pipeline

20

Textile Market Trends

Long-Term Market Outlooks

~$2B

Geo Components

market size

Civil Construction Retail

Expect construction spending to outpace GDP due to strong renewable energy backlogs, continued investment in fossil fuel development, and pent-up housing demand

Spending likely to track closely with GDP

Fabric Converting

~$1B

market size

Furniture Bedding Draperies Filtration

Building Products Packaging Automotive

Mature market expected to track with GDP

Addressable market erosion from foam and import mattresses has been a headwind Believe there is pent-up demand in hospitality refurbishment and new property construction Expected to outpace GDP

Housing shortage likely to drive market growth at or slightly above GDP Expected to outpace GDP

Believe greater than GDP growth is possible due to expanded product applications

21

Textiles - Geo Components

Our extensive portfolio of geosynthetic and environmental solutions, combined with our large North American distribution footprint, creates a distinct value proposition for our customers

Geo components are used in:

• DOT construction projects

• Renewable energy infrastructure

• Oil and gas applications

• Soil and water erosion control

• Stormwater pollution prevention

• Subsurface drainage systems

• Revegetation applications

• Retail/residential landscaping

  22

  
  
  

  Textiles - Fabric Converting

  Our vertically integrated dye and finishing mill enables us to serve our customers in a variety of residential, commercial, and industrial applications with competitive prices and outstanding product quality

  - Topical finishes are water-repellant, fire-retardant and more

  Dye & Finish

• Seat decking

• Cushion wraps

• Dustcovers

• Quilt backing

• Pillow-top inserts

• FR barriers

• Dustcovers

• Residential and hospitality

• Linings, interlinings, and light-blocking fabrics

• Seat-trim cover construction fabrics

• Foam-backing cloth for seat bottoms and backs

- Nonwoven materials used in industrial air and liquid filtration industries

- Custom-designed returnable, expendable, and unitized packaging

• Building insulation accessories

• Reinforcement fabrics for roofing systems

23

Why Invest In Leggett & Platt?

We are executing a disciplined plan to drive long-term value for shareholders

• Strong competitive positions in our core markets. We are an innovator in our markets, dedicated to helping our customers succeed.

• Restructuring activities have reduced costs and resulted in an optimized manufacturing footprint.

• Solid balance sheet. We have significantly reduced debt and currently have three $500m long-term bonds with maturities ranging from November 2027 to 2051, each with attractive interest rates <5%.

• Significant cash flow generation. Future free cash flow will be used for net debt reduction, small strategic acquisitions, share repurchases, and dividends.

• Future margin expansion and profitable growth. We expect to achieve longterm margin expansion and profitable growth as consumer demand rebounds.

  • Free cash flow is equal to cash flow from operations less capital expenditures.

24

Historic Financial Information

Sales and Adj. EPS

$5,500

$5,000

$4,500

$4,000

$3,500

Net Trade Sales (million $'s)

+19% +1%

-8%

-7%

-7%

$3.00

$2.50

$2.00

$1.50

$1.00

+29%

Adjusted EPS ($'s per share)

-18%

-39%

-24% 0%

$3,000

$0.50

$2,500

'21 '22 '23 '24 '25

$0.00

'21 '22 '23 '24 '25

27

Strong Cash Flow Generation

Supports long-term investment in our business and shareholder returns

$600

$500

$400

Cash from Operations (million $'s)

$600

$500

$400

$300

153

Uses of Cash Flow (million $'s)

83

$300

$200

$100

218

229

239

114

136

27

$200

107

$0

100

82 57

$100

'21 '22 '23 '24 '25

'21 '22 '23 '24 '25

Cap-ex Dividends

Acquisitions Share Repurchases Cash from Ops

28

Non-GAAP Reconciliations

Non-GAAP Adjustments

($ millions, except EPS) 2021 2022 2023 2024 2025

Non-GAAP Adjustments ($'s)1

Gain on sale of Aerospace Products Group Net gain from insurance proceeds

Gain from real estate sale

Restructuring, restructuring-related and impairment charges Pension Settlement charge

Somnigroup unsolicited offer evaluation costs Goodwill Impairment

CEO transition compensation costs Long-lived asset impairment

Note impairment

Stock write-off from 2008 divestiture Non-GAAP adjustments (pre-tax $'s)

Income tax impact Special tax items

EPS impact of non-GAAP adjustments ($.16) $- $2.39 $4.78 ($.64)

Non-GAAP adjustments (after tax $'s) Diluted shares outstanding

-

-(28) -

-

-

-

-

-

-

-(28)

7 -(21)

136.7

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-136.5

-(9)

(11) -

-

-

-

-444 -

-424

(98) -326

136.3

-(2)

(31)

50 -

-676

4 -

-

-696

(46)

5

656

137.3

(91)

(35)

(29)

36

22

3 -

-

-

-

-(93)

1

2

(90)

139.7

1 Calculations impacted by rounding 30

Reconciliation of Adj EBIT, Adj EBIT Margin,

Adj EBITDA, and Adj EBITDA Margin

31

Reconciliation of Adj Earnings and Adj EPS

32

Reconciliation of Adj EBITDA by Segment

Additional Information

Cost Structure

• Costs are roughly 75% variable, 25% fixed

• Incremental/decremental volume

  • 25ꟷ35% contribution margin

    • Steel ~20% of RMs

    • Chemicals ~10% of RMs

    • Woven & nonwoven fabrics ~15% of RMs

    • Metals (chrome bar, aluminum) ~2% of RMs

    • Plastics & resins ~5% of RMs

    • Wood ~3% of RMs

    • Foam scrap, fibers ~2% of RMs

    • Others, including sub-assemblies, hardware, components, finished products purchased for resale, etc. ~45% of RMs

    Cost of Goods Sold Composition (approximate):

    Other 20%

    Materials

    Labor 20%

    Materials 60%

    Labor

    • Includes all burden and overhead

    • Supplies ~3% of COGS

    • Depreciation, utilities, maintenance - each ~2% of COGS

    • Shipping/transportation ~7% of COGS

    • Also includes rent, insurance, property tax, etc.

Other

35

Commodity Impact

Steel

o Primarily scrap, rod, and flat-rolled

o Impact from inflation/deflation

• Typically pass through; lag is ~90 days

  o Change in metal margin (mkt price for rod - mkt price for scrap)

• Our scrap cost and rod pricing moves with the market; large swings could cause Bedding Products segment earnings volatility

• Rod pricing is sensitive to tariff rates which influence pricing and can cause metal margin expansion or compression

  Chemicals

  o Primarily TDI, MDI, and polyols

  o Impact from inflation/deflation

• Typically pass through; lag is ~30 days

36

Diverse Global Customer Base

Diverse Customer Base, Low Concentration - Top 10 Customers: 31% of Sales; Largest Customer: 7% of Sales

In North America:

In Europe and Asia:

37

2025 Sustainability Highlights

Our People

Forward-Looking Statements and Non-GAAP

Financial Measures

Statements in this presentation that are not historical in nature are "forward-looking," such as product mix, segment net trade sales, net positive benefit from tariffs, tariff impacts, our ability to mitigate tariffs, organic growth, strategic acquisitions, shareholder returns, restructuring plan impacts, including EBIT benefit, amount and timing of cash and non-cash restructuring-related costs, cash from real estate sales, and sales attrition; sales, demand, consolidated and segment volume, adjusted EPS, operational efficiency improvements, disciplined cost management, favorable sales mix, full year benefit from metal margins, net debt to adjusted EBITDA leverage target, implied adjusted EBIT margin, currency benefit, raw material-related prices, use of cash to reduce net debt and other uses, automotive revenue benefit from FX, automotive outlook in North America, Asia and Europe, long-term textile market outlook, operating cash flow, long-term margin expansion and profitable growth. All forward-looking statements are qualified by the cautionary statements in this provision and reflect only the expectations of Leggett at the time the statement is made. Because forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those reflected in any forward-looking statement. We do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. These risks and uncertainties include: risks related to our strategic review process and any potential strategic transaction, increased trade costs, including tariffs; ability and/or timing to shift production, ability to source domestically or from lowest total cost countries; ability to pass on price increases and manage inventory; possibility that restructuring estimates may change, ability to timely receive benefits and proceeds from real estate sales, and impact on employees, customers and vendors; our ability to accurately forecast sales and earnings; adverse impact caused by: inflation and deflation; macroeconomic impacts; product demand; growth rates and opportunities in industries in which we participate; our ability to obtain raw materials, parts, and labor and ship finished products; impairment of goodwill and long-lived assets; volatility of Chinese EV manufacturers' growth; declines in multinational OEM's market share, resulting in reduction of demand for our Automotive products; access to the commercial paper market and debt market access; increased borrowing costs due to credit rating changes; our ability to reduce or maintain current debt levels; credit facility access and covenant compliance; supply chain shortages and disruptions; ability to manage working capital and collect receivables; market conditions; consumer confidence, housing turnover, employment levels, interest rates, and trends in capital spending; price and product competition; our market share in goods and services we sell or provide; cost of raw materials, parts, labor, and energy; cash generation sufficient to pay debts or the dividend; cash repatriation from foreign accounts; enforcement of antidumping and countervailing duties; disruption of the semiconductor industry and our operations due to conflict between countries, and evolving export controls; ability to maintain profit margins if customers change the quantity or mix of our products; political risks; legal and regulatory changes (including trade laws); realization of deferred tax assets and challenges to tax positions; foreign operating risks; cybersecurity incidents; unauthorized use of artificial intelligence; the functioning of our internal business processes and information systems through technology failures; customer losses and insolvencies; disruption to our steel rod mill, wire mills and other operations; development of commercially viable and innovative products; severe weather events, disaster, fire, explosion, terrorism, pandemic, or governmental action; foreign currency fluctuation; data privacy; litigation risks; climate change and sustainability-related risks and costs; pension settlement charges; and risk factors in Leggett's Form 10-K, Form 10-Q, and Form 8-K.

Market and Industry Data

Unless we indicate otherwise, we base the information concerning our markets/industry contained herein on our general knowledge of and expectations concerning those markets/industry, on data from various industry analyses, on our internal research, and on adjustments and assumptions that we believe to be reasonable. However, we have not independently verified data from market/industry analyses and cannot guarantee their accuracy or completeness.

Non-GAAP Financial Measures

While we report financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this presentation includes non-GAAP measures. These include net debt to adjusted EBITDA, adjusted EPS, EBIT, adjusted EBIT, adjusted EBIT margin, implied adjusted EBIT margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings. We believe these non-GAAP measures are useful to investors in that they assist investors' understanding of underlying operational profitability. Management uses these non-GAAP measures as supplemental information to assess the company's operational performance. In addition, with respect to the net debt to adjusted EBITDA ratio, management and investors use this ratio as supplemental information to assess ability to pay off debt. This ratio is calculated differently than the Company's credit facility covenant ratio.

The above non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for, or more meaningful than, their GAAP counterparts.

39

Contact Us for Additional Information

Ryan Kleiboeker

Executive Vice President

Webcast replay and Company Fact Book are available at https://www.leggett.com