Leggett and Platt

• Total Shareholder Return (TSR) is our primary financial objective;
  TSR = (Change in Stock Price + Dividends Received) / Beginning Stock Price
• TSR derived from four activities: 1) margin improvement, 2) dividend yield, 3) revenue growth, and 4) stock buyback
• Business units each have a specific "role" in portfolio (Grow, Core, Fix, or Divest) based upon their competitive advantages, market position, and financial health
• Business unit bonus is tied to return on assets
• Long-term growth relies on successful product innovation and development of new growth platforms

• 3-year TSR (2008 - 2010) in top 8% of the S&P 500
• Dividends increased by 14% annual average for 39 consecutive years – one of the best records among the S&P 500
• Financial stability, strong balance sheet, solid cash flow
• Strong market positions
• Management with "skin in the game"

1. Fund capital needs and dividends
2. If needed (e.g. sales increase), expand working capital
3. Fund acquisitions, if any
4. Use excess cash flow, if any, to repurchase stock

• TSR (total shareholder return) in top 1/3 of S&P 500
• Steady dividend increases; 50-60% payout
• 30% - 40% net debt to net capital
• Long-term: 4% - 5% annual growth

• About $3 billion market cap; $4 billion enterprise value
• 23% net debt to net capital at Dec. 31, 2010
• 146 million shares outstanding at Dec. 31, 2010
• Standing authorization to buy back up to 10m shares annually

• Listed on NYSE; ticker = LEG; approximately 30,000 shareholders
• Current indicated annual dividend of $1.08 per share
• Dividend yield = 4.7% (on $22.76 year-end stock price)
• 2010 price range of $17.89 - $25.15
• 2010 daily volume averaged 1.6 million shares
• About 15% of stock owned by management and employees,
  directors, retirees, merger partners, and their family members
• Compound annual TSR of 14% since 1967 IPO

• 2010 sales from continuing ops. of $3.36 billion; 28% international
• Broad customer base; mainly manufacturers and retailers
• Few large competitors; almost none are public
• 4 Reporting Segments; 10 Groups; 19 Business Units
• 19,000 employees; 140 manufacturing facilities in 18 countries

• EPS grew 64%; sales increased 10%
• 3-year TSR (2008-2010) in the top 8% of S&P 500 companies
• EBIT margin improved to 8.6% (from 7.5% in 2009, 5.7% in 2008)
• Maintained strong balance sheet; low debt level
• Increased dividend; 39th consecutive annual increase
• Repurchased 6 million shares, or 4%, of Leggett's stock

• Listed as one of Standard & Poor's "Dividend Aristocrats"
• On Fortune's list of the "World's Most Admired Companies"
• Ranked in Mergent's Dividend Achievers as #34 regarding number of years of consecutive dividend growth
• One of America's Finest Companies according to the Staton Institute, based on dividend record

S&P 500 diversified manufacturer that conceives, designs and produces a wide range of engineered components and products that can be found in most homes, offices, and automobiles, and in many retail stores. Leading U.S. manufacturer of a variety of products including:

• Components for bedding and residential furniture
• Carpet padding
• Power foundations
• Components for office furniture
• Drawn steel wire
• Automotive seat support and lumbar systems

• 1883: Partnership founded in Carthage, Missouri
• 1901: Leggett & Platt was incorporated
• 1967: Company went public; revenues of $13 million
• 1979: Listed on New York Stock Exchange (LEG)
• 1990: Revenues exceed $1 billion
• 1998: Included in the FORTUNE 500
• 1999: Added to the S&P 500 index
• 2007: Announced major changes to strategy
• 2008: 125th Anniversary

Eleven large, diversified manufacturing peers.