Leggett Distinctives
Outstanding track record
Strong market positions
Abundant growth opportunities
Financial stability
Consistent dividend growth
Management skin in the game
High quality earnings
Track Record
15% average sales and earnings growth since
1967 IPO
Dividends increased 14% annually (on average)
for 34 consecutive years (second-best record
among the S&P 500)
High quality earnings; conservative accounting
Single A credit rating for more than a decade
Net debt generally below 30% of capitalization
Return on equity averaged 16% over last decade
Performance generally in top third of Fortune 500
Strategic Direction
Profitable growth remains the top priority
Extend our dividend growth record
After funding growth and dividends, use
remaining cash flow (if any) to repurchase
shares of stock
Modestly increase leverage
Financial Goals
15% annual EPS growth
10% 15% annual sales growth
Return on equity (ROE) in the high teens
30% 40% debt-to-capitalization (net of cash)
Single A debt rating
Top quartile performance vs. Peers
Dividend Policy
Aim to pay about 1/3 the trailing 3-year average
earnings
Recognition
Standard & Poors list of 2005 Dividend Aristocrats
Among the top 100 firms in Mergents Dividend
Achievers, as ranked by dividend growth rate
Top-half performance rankings among the
Fortune 500, per Fortune magazine
Fortunes list of Americas Most Admired
Companies
Peer Group
Eleven large, diversified manufacturing peers.
Ticker
Sales
Name
CSL
2.2
Carlisle
CBE
4.4
Cooper Industries
DHR
6.9
Danaher Corporation
DOV
5.5
Dover Corporation
ETN
9.8
Eaton Corporation
EMR
16.0
Emerson Electric Company
ITW
11.7
Illinois Tool Works
IR
9.4
Ingersoll-Rand
MAS
12.1
Masco
PNR
2.3
Pentair
PPG
9.5
PPG Industries
Sales are in billions of dollars, for
full year 2004
2004 Accomplishments
Sales grew 16% to record of $5.1 billion
EPS grew 38% to $1.45 per share
Deverticalization project with Briggs & Stratton
Improved Fixture & Display performance
Issued $180 million of 10-year debt
Reduced net debt to 21.9% of total capitalization
Quick Facts
Sales of $5.1 billion; 21% international
#393 in revenues on Fortune 500 list (April 2004)
Broad customer base; mainly manufacturers,
retailers
Few large competitors; almost none are public
5 Reporting Segments; 29 Business Units
33,000 employee-partners
300 facilities in over 20 countries
160 acquisitions in last decade
Stock Information
Listed on NYSE; ticker = LEG
197 million (diluted) shares outstanding
Approximately 52,000 shareholders
About 20% of stock owned by management
and employees, directors, retirees,
merger
partners, and family members
Current indicated annual dividend of $.60 per share
Dividend Yield = 2.1% (on $29 stock price)
2004 price range of $21.19 $30.68
2004 daily volume averaged 582,000 shares
Compound total return of 16% since 1967 IPO
Authorized to repurchase up to 10 million
shares annually
Profile
Fortune 500 diversified manufacturer that conceives, designs and produces
a broad variety of engineered components and products that can be found
in virtually every home, office, retail store, and automobile. North
Americas largest independent manufacturer of a variety of products
including:
components for bedding and residential furniture
carpet padding
adjustable beds
retail store fixtures and point-of-purchase displays
components for office furniture
non-automotive aluminum die castings
drawn steel wire
automotive seat support and lumbar systems
bedding industry machinery
Brief History
1883: Partnership founded in Carthage, Missouri
1901: Incorporated
1967: Company went public; revenues of
$13 million
1979: Listed on New York Stock Exchange
1990: Revenues exceed $1 billion
1998: Grew into Fortune 500
1999: Included in the S&P 500 index
2004: Revenues exceed $5 billion
