Furniture Brands International Inc
Furniture Brands International — Proxy Contest (April 2008)
26 slides from Furniture Brands International's proxy contest presentation, Apr 10, 2008
Slide 1: FBnext
FBnext
Slide 2: Important Additional Information
2 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 c
Slide 3: Company Overview, Strategic Plan, Sun Proxy Fight, Conclusion
3 Company Overview Strategic Plan - Drive Shareholder Value Sun Proxy Fight Conclusion agenda
Slide 4: Who We Are
4 Who We Are Second-largest U.S. 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
5 Who We Are Own industry's top portfolio of brands:
Slide 6: We Are Well-Positioned In a Large Industry
6 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% Me
Slide 7: With Leading Market Share
7 .... With Leading Market Share 2007 Top Five Industry Market Share Ashley Furniture Private Furniture Brands NYSE: FBN La-Z-Boy NYSE: LZB Klaussner Private Ethan Allen NYSE: ETH
Slide 8: Company Overview, Strategic Plan, Sun Proxy Fight, Conclusion
8 Company Overview Strategic Plan - Drive Shareholder Value Sun Proxy Fight Conclusion agenda
Slide 9: 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 10: FBN's Strategic Plan Meets the Challenges
10 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 pro
Slide 11: Measuring Our Progress - 2007 Achievements
11 Measuring Our Progress - 2007 Achievements Recapitalized company, loosened financial covenants Reduced inventories by $100 million to $407 million Closed 18 unprofitable retail stores Closed eight manufacturing facilities and warehouses Held first all-brands sales meeting, launched WOW Strategy C
Slide 12: Measuring Our Progress - 2008 Achievements to Date
12 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 ad
Slide 13: Measuring Our Progress - 2008 Goals to be Done
13 Measuring Our Progress - 2008 Goals to be Done Developing consumer-driven brand marketing function, based in St. Louis Consolidating North Carolina showrooms and offices Introducing new products at High Point Markets with enhanced gross profit Realigning compensation for field sales force Creatin
Slide 14: Measuring Our Progress - 2009 Goals
14 Measuring Our Progress - 2009 Goals Complete the transition to a branded consumer products company All new products will be the result of consumer research and testing Enhance brand support effectiveness Product line to take full advantage of the best domestic and Asian manufacturing options Prof
Slide 15: The Right Executive Leadership Team is in Place
The Right Executive Leadership Team is in Place Ralph Scozzafava, CEO Wrigley, Campbell Soup Steve Rolls, CFO Convergys, 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 Bread,
Slide 16: Committed and Engaged Board
Committed and Engaged Board Board and management team committed to enhancing shareholder value Board independently minded, highly qualified with broad industry experience Board actively engaged with management in shaping the strategic direction of the company Board committed to good corporate govern
Slide 17: Our Board - Diverse Backgrounds and Proven Leadership
17 Our Board - Diverse Backgrounds and Proven Leadership Katherine Button Bell Vice President and Chief Marketing Officer of Emerson Electric Mickey Holliman, Chairman of the Board Former CEO and President of Furniture Brands John Jordan Previously Vice Chairman of Price Waterhouse Formerly World Le
Slide 18: Strategic Plan Drives Our Financial Timeline
Strategic Plan Drives Our Financial Timeline 2007 - Generate cash and build financial stability Restructured lending facility for maximum flexibility Most cash and least debt since 1993 recapitalization 2008 - Improve profitability Implement shared services organization Launch FBN Asia 2009 - Increa
Slide 19: Company Overview, Strategic Plan, Sun Proxy Fight, Conclusion
19 Company Overview Strategic Plan - Drive Shareholder Value Sun Proxy Fight Conclusion agenda
Slide 20: Background
FBnext Background Date Event February 20,2008 1H Sun Captal publicly states its interest in acquiring all outstanding shares of Furniture Brands at a-sutstantia Premium’ February 24,2008 1H Fumiture Brands isues a press release confirming the receipt ofthe Sun Captal letter and states thatthe Board
Slide 21: FBN Board Closely Involved in Recent Events
21 FBN Board Closely Involved in Recent Events Board has acted in accordance with its fiduciary duties in reviewing indications of interest Multiple meetings with advisors and management on Sun indications Consideration of indications of interest against strategic plan and other alternatives Careful
Slide 22: What Are Sun's Objectives?
22 What Are Sun's Objectives? Capture value that belongs to shareholders $13-$15 is not a "substantial premium" Access to proprietary records for due diligence Sun has significant ownership positions in several furniture manufacturers and retailers that compete directly with Furniture Brands and cre
Slide 23: We Are On the Right Path
23 We Are On the Right Path We have the right management team in place Our strategic plan is working and is delivering long-term value to shareholders We agree we should add to our board - just not Sun's selected designees We will choose the right nominees to help compliment our strategic objectives
Slide 24: Company Overview, Strategic Plan, Sun Proxy Fight, Conclusion
24 Company Overview Strategic Plan - Drive Shareholder Value Sun Proxy Fight Conclusion agenda
Slide 25: Conclusion
25 Conclusion Our board has been actively engaged and is in full support of our strategic plan The board's current directors are best suited to deliver long-term shareholder value Our board has and will continue to take its fiduciary obligations seriously Sun Capital has a self-serving agenda in con
Slide 26: FBnext
FBnext
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