Leggett & Platt Incorporated : Presentation for 4Q 2021 Conference Call

Fourth Quarter

Summary Financial Information

February 7, 2022

Forward-Looking Statements

Statements in this presentation that are not historical in nature are "forward-looking." These statements include future EPS, adjusted EPS, sales, volume, raw material price increases, currency benefits, acquisition and divestitures impacts, higher volume, adjusted EBIT margin, depreciation and amortization, net interest expense, tax rate, diluted shares outstanding, operating cash, capital expenditures, and amount of dividends. 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. These risks and uncertainties include: the adverse impact caused by the COVID-19 pandemic, including demand for our products, our manufacturing facilities' ability to stay fully operational, the functioning of our supply and distribution chains, employee costs, inability to collect receivables, goodwill and long-lived asset impairment, inability to issue commercial paper or borrow under the credit facility; COVID-19 vaccination timing and effectiveness; uncertainty of financial performance; changes in our capital needs; market conditions; price and product competition; cost and availability of raw materials and labor and energy costs; disruption to our rod mill; our ability to pass along raw material price increases; disruption to our supply chain; restructuring-related costs; our ability to manage working capital; anti-dumping duties; cybersecurity breaches; customer losses; climate change regulations; ESG risks; foreign currency fluctuation; cash repatriation; litigation risks; and other risk factors in Leggett's most recent Form 10-K and subsequent 10-Qs.

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Overview

4th Quarter:

 Sales were a quarterly record1 $1.33 billion, a 13% increase vs. Q4-20 Volume was down 5%

 Raw material-related price increases and currency benefit added 16%  Acquisitions, net of divestitures, added 2% to sales

 EBIT of $152 million, down $4 million vs. Q4-20 EBIT of $156 million  EBIT margin of 11.4%, down 180 bps vs. Q4-20 EBIT margin of 13.2%  Q4 EPS of $.77, down $.02 vs. EPS of $.79 in Q4-20

Full Year:

 Sales were a record1 $5.07 billion, a 19% increase vs. 2020  Volume was up 4%

 Raw material-related price increases and currency benefit added 14%  Acquisitions, net of divestitures, added 1% to sales

 Adj.2 EBIT of $568 million, up $115 million vs. 2020  Record adj.2 EPS of $2.78, up 29% vs. 2020

 Maintained ~$80 million of ~$90 million fixed cost savings taken in 2020  Cash from operations was $271 million

 2022 EPS guidance of $2.70-$3.00 on sales of $5.3-$5.6 billion

1. Record is from continuing operations
2. See slides 10 and 24 for calculation of adjusted EPS, adjusted EBIT, and adjusted EBIT margin

Q4 2021 Financial Highlights

$'s in millions (except EPS)	Q4-21	Q4-20	Change
Sales	$1,333	$1,182	13%
EBIT	152	156	(2%)
EBIT Margin	11.4%	13.2%	(180 bps)
EPS	.77	.79	(3%)
Cash from Operations	$191	$219	(13%)
EBITDA	199	204	(3%)
EBITDA margin	14.9%	17.3%	(240 bps)

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Q4 2021 Sales & EBIT Bridge

Sales:	mln $'s		% change
4th Qtr 2020	$1,182
Approx volume decrease	(64)	(5%)
Approx raw material-related pricing and
currency benefit	193		16%
Organic Sales	129	11%
Acquisitions, net of divestitures	22		2%
4th Qtr 2021	$1,333	13%
EBIT:			margin
4th Qtr 2020	$156	13.2%
Primarily lower volume partially offset by higher	(4)
metal margin and pricing discipline
4th Qtr 2021	$152	11.4%

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Q4 2021 Non-Operating & Taxes

$'s
in millions	Q4-21	Q4-20	Change
EBIT	$152	$156	(2%)
Net interest	18	19
Pre-tax earnings	134	137	(2%)
Income taxes	28	29
	Tax rate	21.1%	21.3%
Earnings	106	108	(2%)
Net earnings	106	108	(2%)
Noncontrolling interests	-	-
Net earnings attributable to L&P	106	108	(2%)
EPS	.77	.79	(3%)

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Adjusted Working Capital

		12/31		9/30		12/31
$	's in millions	2021		2021		2020
Cash & equivalents	$362		$235		$349
Accounts receivable, net	652		699		564
Inventories, net	993		970		692
Other current assets		59			80	54
	Total current assets		2,065	1,984	1,658
Current debt maturities	(301)		(300)		(51)
Current operating lease liabilities	(45)		(44)		(42)
Accounts payable	(614)		(607)		(552)
Accrued and other current liabilities	(377)	(387)		(361)
	Total current liabilities	(1,336)		(1,338)		(1,006)
Working capital	730		646		652
% of annualized sales ¹	13.7%		12.2%		13.8%
W/C, excl. cash & current debt/lease	713	755	397
% of annualized sales ¹	13.4%		14.3%		8.4%

¹ Annualized sales: 4Q21: $1,333x4=$5,332; 3Q21: $1,319x4=$5,276; 4Q20: $1,182x4=$4,728

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Net Debt to Adjusted EBITDA

		12/31	9/30		12/31
$'s in millions	2021	2021		2020
Long-term debt	$1,790	$1,766	$1,849
Current maturities	301		300		51
Total debt	2,090		2,066		1,900
Less: Cash & equivalents		(362)	(235)		(349)
Net debt		1,729			1,831		1,551
EBIT, trailing 12 months	596		600		408
Depreciation & amortization		187			189			189
EBITDA	783		789		597
Non-GAAP adjustments (pretax)		(28)	(28)	45
Leggett reported adjusted EBITDA, trailing 12 months		755			761			642
Net debt to Leggett reported 12-month adjusted EBITDA 1				2.29x				2.41x			2.42x

1 Calculated differently than the Company's credit facility covenant ratio.

For additional non-GAAP reconciliation information, see page 8 of the press release.

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Cash Flow

			4th Qtr	YTD
$	's in millions	2021		2020		2021		2020
Net earnings	$106	$108	$403	$253
D&A	46	48	187	189
Impairment, write-offs & other	2	2	10	60
Other non-cash	7		-	9	20
Changes in working capital:
	Accounts receivable	50		94		(75)		24
	Inventory	(27)	(68)		(305)		(32)
	Other current assets	4	(2)	(7)	5
	Accounts payable	8	45	64	83
	Other current liabilities		(4)	(9)	(14)		-
Cash from operations		191			219		271	603
Capital expenditures	31		14		107	66
Acquisitions		-		-	153		-
Dividends	56	53	218	212
Share repurchases (issuances), net		-		-	6	9
Proceeds from asset sales		-	9	39	15
Additions (repayments) of debt, net	20		(63)		185		(228)

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YTD 2021 Financial Summary

		Reported		Adj	Reported		Adj
$'s in millions (except EPS)	2021	Adj ¹	2021	2020	Adj ¹	2020	Change
Sales	$5,073		$5,073	$4,280		$4,280	19%
EBIT	596	(28)	568	408	45	453	25%
EBIT Margin	11.7%		11.2%	9.5%		10.6%	60 bps
EPS	2.94	(.16)	2.78	1.86	.30	2.16	29%
Cash from Operations	$271		$271	$603		$603	(55%)
EBITDA	783	(28)	755	597	45	642	18%
EBITDA margin	15.4%		14.9%	13.9%		15.0%	(10 bps)

¹ See slide 24 for non-GAAP adjustments	10