COMPANY UPDATE

March 2024

LEG (NYSE)

www.leggett.com

FORWARD-LOOKING STATEMENTS

Statements in this presentation that are not historical in nature are "forward-looking" such as restructuring plan impacts,

including higher output manufacturing locations, aligning capacity with future market demand, a more efficient, regional

distribution network, a reduction of facilities from 50 to 35, amount and timing of annual EBIT benefit, amount of annual sales

reduction, amount and timing of cash from real estate sales, per share impact from restructuring costs, per share gains from

real estate sales, amount and timing of cash and non-cash restructuring and restructuring related costs, EPS, adjusted EPS,

adjusted earnings, net earnings, EBIT, adjusted EBIT, adjusted EBIT margin, segment EBIT margins, adjusted EBITDA, adjusted

EBITDA margin, sales, volume for Company and per segment, raw material-related price decreases, currency impacts,

acquisition and divestitures impacts, depreciation and amortization, impairments, working capital, net operating profit after

tax, total debt, operating lease liabilities, equity, cash and equivalents, average invested capital, return on invested capital,

tax rate, diluted shares outstanding, operating cash, uses of cash, capital expenditures, amount of dividends, and share

repurchases. Such forward-looking statements are expressly qualified by the cautionary statements described in this provision

and reflect only the current beliefs and 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. Moreover, 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. Some of these risks and uncertainties include: the preliminary nature of estimates related to the

Restructuring Plan, and possibility that estimates may change as the Company's analysis develops; our ability to timely

implement the Restructuring Plan to positively impact our financial condition and results of operation; our ability to timely

dispose of real estate pursuant to the Restructuring Plan and obtain expected proceeds; impact of the Restructuring Plan on

the Company's employees', customers' and vendors' relationships; inability to achieve expected benefits of the Restructuring

Plan; adverse impact caused by: global inflationary and deflationary impacts; macroeconomic impacts; demand for our

products and our customers' products; growth rates in industries in which we participate and opportunities in those industries;

our manufacturing facilities' ability to obtain necessary raw materials and parts, maintain appropriate labor levels and ship

finished products to customers; impairment of goodwill and long-lived assets; restructuring and restructuring-related costs in

addition to the Restructuring Plan; our ability to access the commercial paper market or borrow under our credit facility,

including compliance with restrictive covenants; adverse impact from supply chain shortages and disruptions; our ability to

manage working capital; increases or decreases in our capital needs; our ability to collect receivables; market conditions;

price and product competition; cost and availability of raw materials due to supply chain disruptions or otherwise; labor and

energy costs; cash generation or debt availability sufficient to pay a dividend, or a Board decision to reduce, suspend, or

terminate the dividend; cash repatriation from foreign accounts; our ability to pass along raw material cost increases through

increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the

quantity or mix of our products; our ability to maintain and grow the profitability of acquired companies; political risks;

changing tax rates; increased trade costs; risks related to operating in foreign countries; cybersecurity incidents; customer

bankruptcies, losses and insolvencies; disruption to our steel rod mill, other operations and supply chains because of severe

weather-related events, natural disaster, fire, explosion, terrorism, pandemic, governmental action, or otherwise; ability to

develop innovative products; foreign currency fluctuation; amount of share repurchases; imposition or continuation of anti-

dumping duties on innersprings, steel wire rod and mattresses; data privacy; climate change compliance costs and regulatory,

market, technological and reputational impacts; our ESG obligations; litigation risks; and risk factors in the "Forward-Looking

Statements" and "Risk Factors" sections in Leggett's most recent Form 10-K filed with the SEC.

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 AT A GLANCE

A DIVERSIFIED MANUFACTURER THAT DESIGNS AND PRODUCES A BROAD VARIETY OF ENGINEERED COMPONENTS AND PRODUCTS

Strong market positions with broad customer base

Solid operating cash flow

Healthy balance sheet

Engaged management team

  • Few large competitors
  • Large addressable markets
  • Long history of strong cash generation to support investment in our business and shareholder returns
  • Priority on investment grade credit rating
  • Deep company knowledge and understanding of our diverse portfolio of businesses
  • Commitment to sustainability through our people, our products, and our processes

3

HIGHLY ENGAGED MANAGEMENT TEAM

Mitch Dolloff

Ben Burns

Christina Ptasinski

Jennifer Davis

President and CEO

EVP and CFO

EVP and Chief Human

EVP and General Counsel

Resources Officer

Ryan Kleiboeker

Tyson Hagale

Sam Smith

EVP and Chief Strategic

EVP and President -

SVP and President - Furniture,

Planning Officer

Bedding Products

Flooring & Textile Products1

4

1 Effective April 2, 2024

DIVERSE PORTFOLIO

Product Mix

Geographic Split

(based on 2024 estimated net trade sales)

(based on production)

Automotive

Mexico

Others

20%

Canada 5%

3%

6%

Bedding

China

39%

Aerospace

10%

4%

Hydraulic Cylinders

5%

U.S.

Europe

61%

15%

Work Furniture

6%

Home Furniture

6%

Flooring & Textiles

20%

5

SEGMENTS

Bedding Products

  • Mattress springs
  • Private label finished mattresses, mattress toppers, pillows
  • Specialty bedding foams
  • Foundations
  • Adjustable beds
  • Drawn steel wire
  • Steel rod
  • Quilting & sewing machinery for bedding mfg.

Specialized Products

Automotive

Auto seat support & lumbar systems Motors, actuators & cables

Aerospace

Tubing

Tube assemblies Flexible joints

Hydraulic Cylinders

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

% of 2024e net trade sales

Specialized

Bedding

29%

39%

Furniture, Flooring

& Textile

32%

Furniture, Flooring &

Textile Products

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 flooring underlayment

Textiles Products

Textile converting Geo components

6

MACRO MARKET EXPOSURE

Automotive

20%

Consumer

Commercial/ Durables

Industrial55% 25%

Key Economic Indicators

  • Total housing turnover
    • Combination of new and existing home sales
  • Consumer confidence
    • "Large ticket" purchases are deferrable
  • Consumer discretionary spending
  • Interest rate levels
  • Employment levels

7

2023 OVERVIEW

Sales $4.7B

Adj. 1

EBIT

Adj. EBIT margin

$334M

7.1%

Adj. 1

EBITDA

Adj. EBITDA margin

$513M

10.9%

Adj. 1

EPS

$1.39

Cash from operations $497M

1 Adjusted to exclude $444m ($2.50/share) intangible impairment, $11m ($.06/share) gain on sales of real estate, and $9m

8

($.05/share) gain on net insurance proceeds

2024 GUIDANCE

(ISSUED 2/8/24 AND NOT UPDATED SINCE)

  • Sales: $4.35-$4.65 billion; down 2% to down 8% versus 2023
    • Volume is expected to be down low to mid-single digits
    • Volume at the mid-point:
      • Down high single digits in Bedding Products Segment
      • Up low single digits in Specialized Products Segment
      • Down low single digits in Furniture, Flooring & Textile Products Segment
    • Raw material-related price decreases and currency impact combined expected to reduce sales low single digits
  • Adjusted1 EPS: $1.05-$1.35
    • Adjusted to exclude $.20-$.25 per share negative impact from restructuring costs
    • Adjusted to exclude $.10-$.15 per share gain from sales of real estate, consisting of idle real estate and real estate exited from restructuring initiatives
  • Implied adjusted EBIT margin of 6.4%-7.2%
  • Operating cash $325-$375 million

1 See slide 46 for non-GAAP reconciliations

9

FOCUS ON FINANCIAL STRENGTH & PERFORMANCE

Driving strong

Improving

Capitalizing on

cash

profitability

growth in

management

through focus on

attractive end

and maintaining

operational

markets with

investment

excellence and

new product

grade credit

innovation

opportunities

rating

and solutions

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

10

CASH FLOW & BALANCE SHEET STRENGTH

Cash Flow

  • Long history of strong cash generation
  • Resilient cash flow in economic downturns
  • Focus on managing working capital
  • Exceeded capital expenditures + dividends in 34 of last 35 years

Debt and Liquidity

  • Maintaining priority on investment grade credit rating
  • $1.2 billion revolving credit facility in place
  • Expect to use commercial paper program to repay $300 million of 3.8%, 10- year notes maturing in November

11

RESTRUCTURING PLAN

ANNOUNCED JANUARY 16, 2024

  • Implementing a Restructuring Plan to improve profitability and better align with the markets we serve
  • Key initiatives primarily related to the Bedding Products segment
    • Continuing to reshape product and commercial strategy
    • Optimizing manufacturing and distribution footprint
  • Smaller actions within the Furniture, Flooring & Textile Products segment
    • Aligning capacity with regional demand
    • Driving operating efficiencies

12

BEDDING PRODUCTS INITIATIVES

RESTRUCTURING PLAN

FOOTPRINT:

PRODUCTS:

  • Higher output manufacturing locations with sufficient capacity to meet customer needs
  • Aligning capacity with anticipated future market demand
  • More efficient, regional distribution network
  • From 50 to ~30-35 facilities
  • Innovative, higher-value content and additional product solutions
  • Components to private label finished goods
  • Leveraging specialty foam and innerspring technologies
  • Enabling profitable growth via expanded product capabilities, increased content
  • Reducing costs
  • Creating value for customers and shareholders

13

EXPECTED FINANCIAL IMPACT

RESTRUCTURING PLAN

$40-$50

~$100

$60-$80

million

million

million

Annual EBIT Benefit

Annual Sales Reduction

Cash from Real Estate

EBIT benefit driven by optimized Bedding footprint

Expect to begin realizing in the second half of 2024

Expect to see full benefit on an annualized run-rate basis by late 2025

Sales reduction primarily related to geographic changes within Bedding

Real estate sales of property associated with initiatives expected to be substantially

complete by the end of 2025

Proceeds expected to primarily be used for debt reduction

14

EXPECTED RESTRUCTURING COSTS

RESTRUCTURING PLAN

2024

2025

Total

Cash Costs

$25-$30

$5-$10

$30-$40

Non-Cash Costs

15-20

20-25

35-45

Total Costs

$40-$50

$25-$35

$65-$85

  • Majority of cash costs anticipated to be incurred in 2024
  • Expect $20-$25 million of restructuring and restructuring-related costs in first half of 2024
    • Approximately half in cash costs

15

SOURCES OF IMPROVED PROFITABILITY

Key Drivers:

Targeted

Efforts:

Essential Cornerstones:

  • Successful execution of restructuring plan
  • Demand improvement in residential end markets
  • Improving operational efficiency across our businesses
  • Cost recovery beyond raw materials
  • Closely managing corporate costs
  • Maintaining pricing discipline
  • Product Innovation
  • Portfolio Management
  • Growth in Attractive Markets
  • Continuous Improvement

16

ATTRACTIVE END MARKETS

COMMON THEMES ACROSS OUR BUSINESS STRATEGIES

Opportunities for

Large addressable

Strong market

markets

content gains

positions

PRODUCT

•

Automotive

DIFFERENTIATION

•

Textiles

•

Aerospace

• Bedding

Products

•

Hydraulic

•

Flooring

•

Home Furniture

Cylinders

Products

•

Work Furniture

OPERATIONAL

CRITICAL

COMPONENTS

EFFICIENCY

LEVERAGE

GDP+

Few large

long-term

competitors

growth

Broad customer

base

17

BEDDING INNOVATION

THE MARKET LEADER IN SPECIALTY FOAM & INNERSPRING TECHNOLOGIES

The foam that changed everything.

Super Strong Specialty Foam

Breathable, cooling, durable.

Combination Pocket

18

AUTOMOTIVE INNOVATION

COMFORT & CONVENIENCE CONTINUE TO GROW

Comfort And Wellness For

Modularity And

Powered Actuation For

All Market Segments

Lightweight For

Convenience

Sustainability

Mid-Class Luxury Massage

CP5 Lumbar Support

BLDC Motors

Harmonic Massage

Modular SMA Valve

Smart Latch Actuator

Advanced/Vibration Massage

Power Liftgate Actuator

SUSTAINABILITY & GOVERNANCE FOCUS AREAS

Our People

  • Committed to supporting our employees and ensuring the right resources and processes are in place for our teams to succeed

Business Ethics & Governance

  • Strong governance, high ethical standards, board leadership and oversight, human rights, data privacy and cyber security, and reporting accountability are key priorities

The Environment

  • Identifying ways to limit our environmental impact and taking steps toward emission-reduction activities

Innovative Products

  • Focused on reducing the environmental impacts of our products across their lifecycles and improving chemical management in our businesses

Supply Chain Management

Global supply base vetted through comprehensive supplier qualification, risk, and review processes

20

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Leggett & Platt Inc. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 05:08:01 UTC.