Leggett & Platt at a Glance

Financial Goals & Dividend Policy

• Total Shareholder Return (TSR¹) is primary
  performance metric
• Goal is TSR in top third of S&&P 500 over rolling
  3-year periods
  • » 3-year TSR (2018-2020) in bottom third of S&&P 500
• Average annual TSR of 11-14%, from four sources:
  • » 6-9% from revenue growth
  • » 1% from margin increase (~ 10 basis points)
  • » 3% from dividend yield
  • » 1% from reduced share count (via stock buyback)
• Steady dividend increases; ~ 50% payout of
  adjusted earnings

Growth Framework

• Targeting 6-9% average annual revenue growth
  (organic + acquisition)
• Three avenues of growth:
  
  1. Increasing content and new programs
  2. Expanding addressable markets
  3. Identifying new growth platforms

Cash Use Priorities

1. Fund organic growth
2. Pay dividends
3. Fund strategic acquisitions
4. Repurchase stock with available cash

• With the increase in leverage from the ECS
  acquisition, we are prioritizing debt repayment after
  funding organic growth and dividends

Capital Structure

• About $6.0 billion market cap; $7.5 billion enterprise value
• 132.6 million shares outstanding at December 31, 2020
• Authorization to repurchase up to 10 million shares annually

2020 Highlights

• 2020 sales were $4.3 billion, down 10% vs 2019
• Adjusted² EPS decreased 17% to $2.13
• Adjusted² EBIT margin decreased to 10.4%
• Adjusted² EBITDA margin decreased to 14.9%
• Cash from operations was $603 million

Stock Information

• Listed on NYSE; ticker = LEG
• Approximately 35,000 shareholders
• Current indicated annual dividend of $1.60 per share
  • » Dividend yield = 3.6% (on $44.30 year-end stock price)
  • » Dividends increased for 49 consecutive years
• One of Standard & Poor’s "Dividend Aristocrats"
• 2020 price range of $22.03 - $51.76
• About 10-12% of stock owned by management and
  employees, directors, retirees, acquisition partners,
  and their family members

Quick Facts

• Financial stability, strong balance sheet, solid
  operating cash flow
• Strong market positions
• Broad customer base; mainly manufacturers
• Few large competitors; almost none are public
• Management with “skin in the game”
• 3 reporting segments; 7 groups; 15 business units
• ~20,000 employees, 135 manufacturing facilities in
  17 countries
• On Fortune's list of World’s Most Admired Companies

Profile

S&P 500 diversified manufacturer that conceives,
designs, and produces a wide range of engineered
components and products. Leading U.S.-based
manufacturer of a variety of products including:

• Components for bedding
• Automotive seat support and lumbar systems
• Specialty bedding foams and private-label finished
  mattresses
• Components for home furniture and work furniture
• Flooring underlayment
• Adjustable beds
• Bedding industry machinery