Company Update
November 2021
LEG (NYSE)
www.leggett.com
Forward-Looking Statements
Statements in this presentation, either written or oral, 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 or E," "expect," "forecasted," "intend," "may," "plan," "should," "guidance" or the like and include percentage of segments sales, sales and growth, volume growth, EPS, EBIT, EBITDA, depreciation and amortization, net interest expense, tax rate, diluted shares, operating cash, free cash flow, capital expenditures, dividends and yield, debt repayments, net earnings, return on invested capital, raw material related price increases, currency benefit, fixed cost savings, EBIT margins, metal margins, stock repurchases, TSR, acquisition spending, and uses of cash. 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 demand for our products; our manufacturing facilities' ability to remain fully operational, obtain necessary raw materials and parts, maintain appropriate labor levels and ship finished products to customers; our ability to collect receivables in accordance with their terms; impairment of goodwill and long-lived assets; restructuring and related charges; access to the commercial paper market or borrowing under our credit facility; our ability to comply with restrictive financial covenants; changes in our capital needs; market conditions; disruption to our rod mill; our ability to manage working capital; antidumping duties; cybersecurity breaches; customer losses; price and product competition; cost and availability of raw materials and labor; fuel and energy; climate change regulations; ESG risks; foreign currency fluctuation; cash repatriation; privacy laws; litigation risks; and other risk factors in Leggett's most recent Form 10-K and subsequent 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 accuracy or completeness.
2
Leggett Distinctives
Strong balance sheet and cash flow
Disciplined use of cash
~3.5% dividend yield; 50 consecutive annual increases
Leader in most markets; few large competitors
Opportunities for long-termgrowth
ƒ 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
3
Our Markets
Macro Market Exposure
Automotive | Product Mix | |
(based on 2021 estimated net trade sales) | ||
20% | ||
Automotive | ||
16% | ||
Consumer | Aerospace | |
Commercial/ | Durables | 2% |
60% | ||
Industrial | Hydraulic Cylinders | |
20% | 2% | |
Work Furniture | ||
Bedding | 5% | |
50% | ||
Geographic Split | Home Furniture | |
(based on production) | 8% | |
Mexico Others | ||
Canada 5% | 2% | |
6% | Flooring & Textiles | |
China | 17% |
10% | |
Europe | |
10% | U.S. |
67% |
4
% of 2021e net trade sales
Segments
Specialized
20%
Bedding
50%
Furniture,
Flooring & Textile
30%
& | ||||
Bedding Products | Specialized Products | Furniture, Flooring | ||
Textile Products | ||||
Bedding
- Mattress springs
- Private-labelfinished 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
Automotive
- Auto seat support & lumbar systems
- Motors, actuators & cables
Aerospace
- Tubing
- Tube assemblies
- Flexible joints
Hydraulic Cylinders
- Hydraulic cylinders primarily for material handling, transportation & construction equipment
Home Furniture
- Recliner mechanisms
- Seating and sofa sleeper components
Work Furniture
- Chair controls, bases, frames
- Private-labelfinished seating
Flooring & Textiles
- Flooring underlayment
- Textile converting
- Geo components
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Long Term
Value Creation
Total Shareholder Return
SOURCES
Revenue | Margin | Dividend | Stock |
Growth | Improvement | Yield | Buybacks |
Target: | Target: | Payout target: | With available cash |
6-9% annually | 11.5-12.5% | ~50% of earnings |
Total Shareholder Return = (∆ Stock Price + Dividends) / Initial Price
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Growth Framework | |||||||
1 | 2 | 3 | |||||
6-9% | Increasing | Expanding | Identifying | ||||
Average Annual | Content | Addressable | Strategic | ||||
and New | Markets | Acquisitions | |||||
Revenue Growth | |||||||
Programs | |||||||
Organic + Acquisition | |||||||
9 | |||||||
U.S. Bedding Market Overview | |||||||
Finished Mattresses & | $8B | $1B | $1B | ||||
Foundations at Wholesale | APPROXIMATE | ||||||
Addressable Market | MARKET SIZE | ||||||
~$10B | SEGMENT | MATTRESSES | ADJUSTABLE | STATIC | |||
FOUNDATIONS | FOUNDATIONS | ||||||
COMPETITORS | |||||||
Innerspring maker-users and foam component suppliers | |||||||
Importers of innersprings, finished mattresses | |||||||
and adjustable foundations | |||||||
Private-label mattress manufacturers, | |||||||
primarily all foam | |||||||
Source: ISPA; Furniture Today; internal analysis | 10 | ||||||
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Leggett & Platt Inc. published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 20:58:08 UTC.