Leggett & Platt Incorporated : Company Update June 2024

Company Update

June 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 ~30-35, amount and timing of annual EBIT benefit, amount of annual sales reduction, amount and timing of cash from real estate sales, number and timing of properties to be listed for sale, 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, meaningful profitability improvement, adjusted EPS, adjusted EBIT margin, sales, volume for Company and per segment, raw material-related price decreases, currency impacts, operating cash, and net trade sales. 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 operations; 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; whether we will continue to pay cash dividends on our common stock; 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; 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 and subsequent Form 10-Qs 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.

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Leggett at a Glance

A diversified manufacturer that designs and produces a broad variety of engineered components and products

Strong competitive 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

Long-term leverage target of 2.0x Net Debt to Adjusted EBITDA

Deep company knowledge and understanding of our diverse portfolio of businesses

Commitment to sustainability through our people, our products, and our processes

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Diverse Portfolio

Product Mix		Geographic Split
(based on 2024 estimated net trade sales)		(based on production)
			Mexico	Others
			3%
			5%
Automotive		Canada
20%		6%
Bedding	China
39%
10%
Aerospace
4%
Hydraulic Cylinders
5%
Work Furniture	Europe			U.S.
		61%
6%	15%

Home Furniture

6%

Flooring & Textiles

20%

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Segments

Bedding Products

39% of 2024e net trade sales

Components

• Mattress springs
• Specialty bedding foams
• Semi-finishedmattresses
• Drawn steel wire
• Steel rod

Finished Products

• Private label compressed mattresses
• Mattress toppers and pillows
• Adjustable beds
• Foundations

Specialized Products

29% of 2024e net trade sales

Automotive

• Auto seat support and lumbar systems
• Motors, actuators, and cables

Aerospace

• Tubing
• Tube assemblies
• Flexible joints

Hydraulic Cylinders

• Hydraulic cylinders primarily for material handling, transportation, and heavy construction equipment

Furniture, Flooring & Textile Products

32% of 2024e net trade sales

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 underlayment

Textile Products

o Textile converting o Geo components

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Macro Market Exposure

Automotive

20%

Consumer

Durables

Key Economic Indicators

o Total housing turnover

• Combination of new and existing home sales

o Consumer confidence

Commercial/

Industrial

25%

55%

• "Large ticket" purchases are deferrable

o Consumer discretionary spending

o Interest rate levels

o Employment levels

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1Q24 Overview

Sales $1.1B

Adj.1 EBIT	Adj. 1	EBIT Margin
$64M	5.8%
Adj. 1 EBITDA	Adj. 1	EBITDA Margin
$97M	8.8%
Cash from Operations
($6M)

• Adjusted to exclude $11m ($.06/share) of restructuring costs, $8m ($.05/share) gain on sales of real estate, and $2m ($.01/share) gain on net insurance proceeds

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2024 Guidance

Issued 4/30/24 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 midpoint:

• • 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

• Adjusted EPS: $1.05-$1.35
• • Adjusted to exclude $.20-$.25 per share of 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 plan initiatives
• Impliedadjusted EBIT margin of 6.4%-7.2%
• Operating cash $300-$350 million (vs prior guidance of $325-$375 million)

•

Decrease due to less benefit from working capital than previously expected

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Strategic Priorities

Balance Sheet

Strength

Margin

Improvement

Long-Term

Profitable

Growth

Maintaining long-held financial strength Refreshed capital allocation strategy

Optimizing operations and G&A cost structure Executing on restructuring plan

Positioning for profitable growth opportunities in Bedding, Automotive, and Geo Components

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

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Balance

Sheet

Strength

Strengthening Our Balance Sheet and Liquidity

Debt and Liquidity

o Committed to investment grade credit rating

o Proactively amended agreement for existing revolving credit facility in March to increase leverage ratio from 3.5x to 4.0x

• $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

Cash Flow

o Long history of strong cash generation

o Resilient cash flow in economic downturns o Focus on managing working capital

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Balance

Sheet

Strength

Refreshed Capital Allocation Strategy

A focused on

Near Term Focus: Upholding long-held balance sheet strength and continuing to invest in our businesses Targeting long-term ratio of 2.0x Net Debt to Adjusted EBITDA

ORGANIC GROWTH

Investing in our businesses for the future

STRATEGIC ACQUISITIONS

Primarily opportunities complementing our existing portfolio of businesses

SHAREHOLDER RETURNS

Dividends

Opportunistic share repurchases

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Margin Sources of Improved Profitability

Improvement

Key Drivers:

Targeted Efforts:

Essential Cornerstones:

Successful execution of restructuring plan

Improving operational efficiency across our businesses Demand improvement in residential end markets

Cost recovery beyond raw materials

Closely managing corporate costs

Maintaining pricing discipline

Product Innovation

Portfolio Management

Growth in Attractive Markets

Continuous Improvement

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Margin

Improvement

Restructuring Plan

Announced January 16, 2024

• Implementing a Restructuring Plan to improveprofitability 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

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Improvement Bedding Products Restructuring Initiatives
Margin
FOOTPRINT:	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
PRODUCTS:	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

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Margin

Improvement

Restructuring Initiatives Are Underway and On Track

Bedding Products	Home Furniture	Flooring Products
Closed four small U.S. Spring	Closed one plant and shifted	Closed one production line and
distribution facilities	production to remaining	transferred manufacturing to
Shifted manufacturing from	facilities	other locations
three U.S. Spring facilities to	Engineering team relocating to	Redeploying equipment from
remaining operations	nearby location	closed line to another facility
Closed one small Specialty	Property expected to be listed
Foam plant	for sale by Q3 2024
Currently downsizing
innerspring operations in China
Two additional Specialty Foam
consolidations underway
Preparing to list five properties
for sale

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Margin

Improvement

Restructuring Plan - Expected Financial Impact

$ 0-$50	~$100	$60-$80
million	million
million
Annual EBIT Benefit	Annual Sales	Cash from Real
Reduction	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

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Margin

Improvement

Restructuring Plan - Expected Costs

o 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
• • $11 million of costs incurred in 1Q24; $6 million cash and $5 million non-cash costs

	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

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Growth			Attractive End Markets
Long-Term
Profitable
					Large
					addressable
Opportunities for		markets	Strong
content gains			competitive
						positions
					PRODUCT
			• Automotive	DIFFERENTIATION	• Textiles
			• Aerospace	• Bedding	Products
			•	Hydraulic	• Flooring
			• Home Furniture
				Cylinders	Products
				• Work Furniture
				CRITICAL		OPERATIONAL
					EFFICIENCY
				COMPONENTS
					LEVERAGE
		GDP+
				Few large
long-term
	growth			competitors

Broad customer

base

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Long-Term Bedding Innovation

Profitable

Growth

Long-Term

Profitable

Growth

The foam that changed everything

Breathable, cooling, durable.

Super Strong Specialty Foam

Combination Pocket

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Automotive Innovation

Comfort and Wellness for All Market Segments

Mid-Class Luxury Massage

Harmonic Massage

Advanced/Vibration Massage

Modularityand Lightweight for Sustainability

CP5 Lumbar Support

Modular SMA Valve

Powered Actuation for Convenience

BLDC Motors

Smart Latch Actuator

Power Liftgate Actuator

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