Leggett & Platt : Company Update November 2020

Company Update

November 2020

LEG (NYSE)

www.leggett.com

Forward-Looking Statements

Statements in this presentation that are not historical in nature are "forward-looking." These statements are identified either by their context or by use of words such as "anticipate," "believe," "estimate," "expect," "forecasted," "intend," "may," "plan," "should," "guidance" or the like. All such forward-looking statements are expressly qualified by the cautionary statements described in this provision. We do not have, and do not undertake, any duty to update any forward-looking statement. Forward-looking statements should not be relied upon as a prediction of actual future events or results. Any forward-looking statement reflects only the beliefs of Leggett at the time the statement is made. All forward-looking statements are subject to risks and uncertainties which might cause actual events or results to differ materially from the forward-looking statements. Some of these risks and uncertainties include: the adverse impact caused by the COVID-19 pandemic upon (i) the demand for our products, (ii) our manufacturing facilities' ability to remain open and produce at historical utilization rates, obtain necessary raw materials and parts, maintain appropriate labor levels and ship finished products to customers, (iii) operating costs related to pay and benefits for our terminated employees, (iv) our ability to collect receivables in accordance with their terms due to customer bankruptcy, financial difficulties or insolvency, (v) impairment of goodwill and long-lived assets, (vi) restructuring-related charges and (vii) our ability to access the commercial paper market or borrow under our credit facility, including our inability to comply with the restrictive covenants in our credit facility; our ability to reduce fixed costs; our ability to achieve our operating targets; projections of Company sales, earnings, EBIT margin, depreciation and amortization, capital expenditures, dividends, cash from operations, net interest expense, tax rate and diluted shares; price and product competition; cost and availability of raw materials and labor, fuel and energy costs, climate change regulations, environmental, social and governance risks, foreign currency fluctuation, cash repatriation, litigation risks and other risk factors in Leggett's most recent Form 10-K and subsequent Form 8-Ks and Form 10-Qs.

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 2 accuracy or completeness.

Leggett Distinctives

Strong balance sheet and cash flow

Disciplined use of cash

~4% dividend yield; 49 consecutive annual increases Leader in most markets; few large competitors

Opportunities for long-termgrowth

 Internal initiatives + market growth + acquisitions  Large addressable markets

Management has "skin in the game"

 Significant stock owners; forego comp in exchange for shares  Incentive comp aligned with TSR focus

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Our Markets

Macro Market Exposure		Product Mix
Automotive
			(based on 2019 net trade sales)
20%
					Automotive
			Consumer		18%
			Durables
			55%		Aerospace
Commercial/					3%
Industrial
25%				Bedding	Hydraulic Cylinders
				2%
				46%
Geographic Split			Work Furniture
		7%
(based on production)
	Mexico Others			Home Furniture
	5%	2%
Canada					7%
7%
China					Flooring & Textiles
				17%
9%
Europe
11%			U.S.
			66%

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% of 2019 net trade sales

Specialized

Bedding

23%

Segments

46%Furniture,

Flooring & Textile

31%

Bedding Products

Bedding

 Mattress springs

 Private-label finished mattresses, mattress toppers, pillows

 Specialty bedding foams  Foundations

Wire

 Drawn steel wire  Steel rod

Adjustable Bed

 Adjustable beds

Machinery

 Quilting & sewing machinery for bedding mfg.

 Mattress packaging and glue-drying equipment

Specialized Products

Automotive

 Auto seat support & lumbar systems

 Motors, actuators & cables

Aerospace

 Tubing

 Tube assemblies

Hydraulic Cylinders

 Hydraulic cylinders primarily for material handling, transportation & construction equipment

Furniture, Flooring &

Textile Products

Home Furniture

 Recliner mechanisms

 Seating and sofa sleeper components

Work Furniture

 Chair controls, bases, frames  Private-label finished seating

Flooring & Textiles

 Flooring underlayment  Textile converting

 Geo components

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Slide intentionally bank

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Current Topics

Q3 2020 Highlights

• Quarterly record¹ EBIT, EBITDA, EPS and Operating Cash Flow
• • Adj.2 EPS of $.80, up $.04 vs. adj.2 EPS of $.76 in Q3-19
  • Operating Cash Flow of $261 million vs. $213 million in Q3-19
• Adj.2 EBITof $153 million, up $5 million vs. Q3-19
• Adj.2 EBIT margin up 80 bps, to 12.7%, vs. 11.9% in Q3-19
• Fixed cost savings ~$30 million in Q3-20
• • YTD fixed cost savings of ~$70 million
  • Expect full year savings ~$100 million
• Sales decreased 3%, to $1.208 billion
• • Volume was down 3%; exited business -1%
  • Raw material-related price decreases offset by currency benefit
  • Acquisitions and divestitures offset
• 2020 guidance suspended, as previously announced April 2nd

1	Record EPS is from continuing operations	8
2	See appendix for non-GAAP reconciliations