Building for the Future
2019 Annual Report

Many exciting things are happening at Leggett & Platt

On the next few pages we address important questions. We explain how the strengths in our Bedding and Automotive businesses align with the dynamic markets we serve and how they will drive Leggett’s continued success. We introduce you to some of the newer faces at Leggett. And we discuss our commitment to our culture and enhancing the lives of those around us.

We are making important changes while honoring our legacy and Building for the Future.

Strong businesses thriving in dynamic markets

All of Leggett’s businesses that support the bedding industry are now in one segment. Why now?

The organizational changes reflect the way we manage our Bedding business and how we intend to expand our market leadership over time. Taking a more holistic view of our business enables us to accelerate innovation across technologies and improve production and capital efficiency. Combining these businesses into one segment will facilitate collaboration and sharing of consumer insights, helping us to more quickly introduce products that align with changing consumer preferences.

Compressed mattresses have revolutionized the U.S. bedding industry and created tremendous opportunities for us.

  • Consumers have accepted online mattress purchases and boxed beds.
  • Mattresses can now be purchased at many big-box retailers and easily carried home by consumers.
  • Large mattress retailers are adding their own private-label mattresses.
Our Bedding business is uniquely positioned to win in this new marketplace.

L&P Bedding Value Chain

Customer support from components to finished goods and fulfillment
We support our customers anywhere along the value chain from raw materials to components to finished mattresses and foundations to distribution and fulfillment. Importantly, our innerspring, specialty foam, and finished goods product development and production capabilities allow us to create value at each point, from raw materials all the way to private-label finished goods and delivery to the consumer.

How will technology changes in the automotive industry affect Leggett & Platt over the next decade?

We are closely aligned with long-term changes in the market. Those changes include the development of new technologies and applications such as hybrid and electric vehicles, shared and autonomous vehicles, and connectivity between vehicles and electronic devices. We are investing in the capabilities needed for continued success in the changing market and to ensure this business remains a leading source of growth and value creation for years to come.

The unique competitive advantages in our Automotive business provide market leadership, drive growth, and create a foundation for continued success.

Our advantages are rooted in deep industry knowledge and customer engagement. Leggett is known in the market as the leader in technology for seating comfort, and we are extending that into other comfort and convenience applications.

Demand for comfort and convenience continues to grow. The vehicle interior offers the greatest opportunity for passenger individualization. Automotive manufacturers will continue to add powered features throughout the vehicle in response to consumer preferences.

We are bringing technology to market that addresses the most value-creating opportunities and challenges. Our intellectual property portfolio is extensive. We have a global footprint with the ability to engineer, manufacture, and deliver components around the world, where our customers assemble vehicles.

New faces and perspectives aligned with our core values

You have added several new Directors to the Board and named a new Chairman. What drove those changes?

Our Board of Directors understands Leggett’s businesses and provides us excellent counsel, and it is important to continually evaluate, refresh, and strengthen the Board. With the additions of four new independent directors (see below) over the past 18 months, we added unique characteristics and diverse skillsets, such as specific industry knowledge, organizational leadership, and commercial and consumer expertise.

Elevating Karl Glassman to Chairman and adding Mitch Dolloff to the Board represent our commitment to build a strong foundation for Leggett’s future. Karl is the right choice for Chairman with his comprehensive knowledge of all aspects of the Company and close relationship with our investors and other key stakeholders. The Board will benefit from Mitch’s operational and strategic insight into Leggett’s varied businesses around the world.

Srikanth Padmanabhan
Vice President of Cummins, Inc. and President of its Engine Business. Joined the Board in 2018.
Mark Blinn
Retired President and CEO of Flowserve Corporation. Joined the Board in 2019.
Jai Shah
Group President of Masco Corporation. Joined the Board in 2019.
Mary Campbell
Chief Merchandising Officer, Qurate Retail Group and Chief Commerce Officer, QVC U.S. Joined the Board in 2019.

Tell us about your background and what you are bringing to Leggett.

Jeff Tate

Executive Vice President and Chief Financial Officer
It has been an absolute honor and privilege to be part of the Leggett & Platt team since September 2019. I bring 27 years of senior-level finance, operating, and general management experience with The Dow Chemical Company, where I drove financial discipline and provided financial counsel at the strategic and operational levels of several global businesses.

At Leggett & Platt, we take pride in delivering on our commitments. My commitment as CFO is to promote a culture of accountability, financial discipline, empowerment, and inclusion. I encourage each employee to harness an owner’s mindset so we can work together to embrace the many opportunities ahead.

Tell us about your background and what you plan to bring to your new role at Leggett.

Steve Henderson

Executive Vice President and President of Specialized Products and Furniture, Flooring & Textile Products segments
It has been a tremendous honor to develop and lead our talented global Automotive team for the past three years. Prior to joining Leggett, I spent over 30 years in a variety of leadership positions at Dow Automotive Systems. In my role as Business President – Automotive Systems, I was responsible for the global business and its strategy and organizational health.

As I am transitioning into my new role leading the Specialized Products and Furniture, Flooring & Textile Products segments, I am engaging with an impressive team of leaders across both segments. I am excited to learn from them and share my experience and knowledge so we can all work to further the success of our businesses.

Building out the executive team.

We are conducting searches for two additional executive positions – the permanent leader of the newly formed Bedding Products segment and a Chief Human Resources Officer. These additions will bring unique expertise and new perspectives to our leadership team, ensuring we have the capabilities to thrive in a changing marketplace.

Leggett’s commitment to a sustainable culture

We are committed to enhancing lives through our products, our processes, and our people. Comfort has been a hallmark of our business since its inception. And through the years, comfort has also informed our culture. Steeped in attributes of integrity, respect, accountability, opportunity, innovation, and safety, we strive every day to uphold that culture.

“Leggett has a rich 137-year history, and we are very respectful of that history. But I promise you the future is exciting, and we are absolutely building for that future.”
– Karl Glassman

Our executive leadership team shares an aligned vision for the future of Leggett & Platt. Our mission is to create shareholder value, and the best way to do that is to build businesses and a culture that is sustainable for generations to come.

Opportunities for Development and Growth

The first step toward building Leggett’s future is to enable a culture of employee development at all levels of the Company. This means ensuring our employees have the tools and resources they need to succeed in their roles and that they learn and grow from setbacks.

“My favorite thing about what I do is removing barriers for our people and then seeing their careers progress. I envision more and more career development success stories having a critical impact on Leggett & Platt’s future. Only when our employees are growing can we build a sustainable, strong foundation of talent to carry us into the future.”
– Mitch Dolloff

We are passionate about empowering our people to drive the Company. We recognize that a big part of developing others is to step aside and allow them to flourish.

A More Inclusive ‘All of Us’

A sustainable culture also relies on a strong sense of inclusion and a recognition that all voices matter at Leggett & Platt.

“We have a tremendous foundation of collaboration. As we grow, we need to continue to enhance our inclusiveness and our diversity of talents. The most inclusive companies are typically the most profitable companies. We take that very seriously because it is the right thing to do and makes great business sense.”
– Jeff Tate

As part of our commitment to prioritize inclusion, we began 2020 with a mission to communicate more consistently with employees.

“We want every employee to understand the change that is occurring in our Company, where we are headed, and why. That is why our executive leadership team has committed to sharing timely and relevant information across the organization. It is the key to aligning all of Leggett on our future vision.”
– Steve Henderson

Together, we are on a journey to foster an environment of respect, engagement, and collaboration. When we all work to break down barriers and silos, we can focus on better listening, feedback, and support – actions that are the responsibility of every employee.