Furniture Brands International Inc
Furniture Brands International — Proxy Contest (April 2008)
27 slides from Furniture Brands International's proxy contest presentation, Apr 3, 2008
Slide 1: FBnext
FBnext
Slide 2: Important Additional Information
Important Additional Information In connection with the 2008 Annual Meeting of Stockholders, the Company has filed a proxy statement regarding the 2008 Annual Meeting with the U.S. Securities and Exchange Commission and, on March 31, 2008, began mailing the definitive proxy statement and a proxy car
Slide 3: Agenda
Company Overview Strategic Plan Financial Goals Investment Considerations Conclusion/Q&A agenda
Slide 4: Who We Are
Who We Are Second-largest US home furnishings manufacturer 2007 net sales of $2.1 billion Headquartered in St. Louis Approximately 12,000 employees 21 manufacturing sites
Slide 5: Who We Are: Industry's top portfolio of brands
Who We Are Own industry's top portfolio of brands:
Slide 6: We Are Well-Positioned In a Large Industry
Case Goods Upholstered All Other Metal and Others US Residential Furniture Sales by Segment (2004) 0.47 0.49 0.04 4.6 Case Goods 47% Upholstered 49% FBN Product Mix Case Goods Upholstered Beddings Metal and Others US Residential Furniture Sales by Segment (2004) 21.07 14.29 5.9 4.6 Beddings 13% Meta
Slide 7: With Leading Market Share
.... With Leading Market Share 2007 Top 5 Industry Market Share Ashley Furniture Private Furniture Brands NYSE: FBN La-Z-Boy NYSE: LZB Klaussner Private Ethan Allen NYSE: ETH
Slide 8: Siloed Operating Companies With Separate Organizational Structures
Siloed Operating Companies With Separate Organizational Structures Before: Holding Company Model Before: Holding Company Model Human Resources Finance Information Technology Supply Chain Marketing Human Resources Finance Information Technology Supply Chain Marketing Human Resources Finance Informati
Slide 9: Now: Operating Company Model
Now: Operating Company Model Human Resources Ensures common processes, streamlined service delivery, and operational excellence while reducing costs Finance Information Technology Supply Chain Effective 1/1/08 Sales & Marketing Broyhill Lane Thomasville Drexel-Heritage FBN Sales & Marketing Sales &
Slide 10: The Model for Asian Sourcing
Large and Fragmented Provider Base FBN Corporate and Brands Current Operating Model FBN-Owned Supply Chain Group Focused Provider Base Brands Future Operating Model FBN Asia Third Party Provider Provider Provider Vietnam Indonesia Provider Provider Provider China Provider Provider Provider China Vie
Slide 11: New Model = Better Execution, Lower Costs
New Model = Better Execution, Lower Costs Better consistency and quality of services (integration of best practices) Increases speed (service delivery, program implementation, etc.) Dedicates functional experts to the business Enables cross-functional collaboration Leverages economies of scale; redu
Slide 12: Agenda
Company Overview Strategic Plan Financial Goals Investment Considerations Conclusion/Q&A agenda
Slide 13: Changing Industry Demands a New Strategy
Changing Industry Demands a New Strategy Manufacturing Non-U.S. U.S. Retail Design/ Sourcing Retail Stores Marketing/ Distribution DTC Traditional Furniture Retailers Samson Regional Furniture Retailers Kasen Furniture Brands Ethan Allen La-Z-Boy Ashley Sauder Dorel Pier 1 Imports Pottery Barn Wal-M
Slide 14: FBN's Strategic Plan Meets the Challenges
FBN's Strategic Plan Meets the Challenges Grow and Develop Our People High-performance organization | Great place to work Build Our Brand Power Brand/ marketing focus Product innovation Win With Customers Excel as a retailer Leverage designer group Deliver Operational Excellence Best low-cost produc
Slide 15: Measuring Our Progress - 2007 Achievements
Measuring Our Progress - 2007 Achievements Recapitalized company, loosened financial covenants Reduced inventories by $100 million to $407 million Closed 18 unprofitable retail stores Closed 8 manufacturing facilities and warehouses Held first all-brands sales meeting, launched WOW Strategy Created
Slide 16: Measuring Our Progress - 2008 Achievements To Date
Measuring Our Progress - 2008 Achievements To Date Sold HBF for $75 million Reduced dividends by $23 million annually Paid down $45 million in debt Current debt is $235 million, cash on hand is $170+ million Acquired 11 Thomasville stores for minimal investment Created Designer Brands Group to addre
Slide 17: Measuring Our Progress - 2008 Goals to be Accomplished
Measuring Our Progress - 2008 Goals to be Accomplished Developing consumer-driven brand marketing function, based in St. Louis Consolidating North Carolina showrooms & offices Introducing new products at High Point Markets with enhanced gross profit Realigning compensation for field sales force Crea
Slide 18: Measuring Our Progress - 2009 Goals
Measuring Our Progress - 2009 Goals Complete the transition to a branded consumer products company All new products will be the result of consumer research & testing Enhance brand support effectiveness Product line to take full advantage of the best domestic and Asian manufacturing options Profitabl
Slide 19: Executive Leadership Team is in Place - Corporate
Executive Leadership Team is in Place - Corporate Ralph Scozzafava, CEO Wrigley, Campbell Soup Steve Rolls, CFO Converys, B.F. Goodrich Alex Hodges, CMO Russell, Kodak, Smithkline Beechum Jon Botsford, General Counsel Steelcase Beth Sweetman, SVP - Human Resources Monsanto Rick Isaak, CAO Panera Bre
Slide 20: Executive Leadership Team is in Place - Brands
Executive Leadership Team is in Place - Brands Jeff Cook, Broyhill President Magnussen Skipper Holliman, Lane President Lane Ed Teplitz, Thomasville President Ethan Allen Dan Bradley, Designer Brands Group President Baker, Henredon = New to Company since 1-1-07
Slide 21: Agenda
Company Overview Strategic Plan Financial Goals Investment Considerations Conclusion/Q&A agenda
Slide 22: Strategic Plan Drives Our Financial Timeline
Strategic Plan Drives Our Financial Timeline 2007 - Generate cash and build financial stability Restructured lending facility for greater flexibility Most cash and least debt since 1992 2008 - Improve profitability Close unprofitable retail stores Implement shared services organization Launch FBN As
Slide 23: 2007 Results and 2008 Guidance
2007 Results (millions) EPS, $ 0.83 0.41 0.21 0.00 - -0.41 - -0.63 - -0.83 - -1.03 0.63 - -0.21 Guidance $0.40 to $0.60 2007 Results and 2008 Guidance
Slide 24: Investment Considerations
Well-positioned in a large, essential market Best brand portfolio in industry Move to operating company provides savings, scalability Strategic plan is working Meeting our financial timeline investment considerations
Slide 25: Agenda
Company Overview Strategic Plan Financial Goals Investment Considerations Conclusion/Q&A agenda
Slide 26: Conclusion
Management is committed to shareholder value creation Strategic plan is working Sun's actions are a distraction The right team is in place conclusion
Slide 27: FBnext
FBnext
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