HNI : Investor Presentation March 2025

Published: 2025-03-19 07:23:08 ET HNI

HNI Corporation

Investor Presentation - March 2025

Investment Thesis

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Margin Expansion

Organic Revenue Growth

Earnings Visibility

Investment Opportunities

Financial Strength

Seasoned Management

Focus on margin expansion in Workplace Furnishings. Strong progress through 2024, with our profit transformation plan, synergies, and productivity offering additional opportunity.

Driving category expansion in Residential Building Products; positioned to benefit from long-term market fundamentals. Unmatched breadth/depth advantage as Workplace market evolves.

KII synergies/WFs manufacturing network optimization and the ramp of new WFs facility in Mexico expected to yield total savings of $80-85 million ($45-50 million to benefit '25-'26).

Unique investment opportunities to accelerate organic revenue growth and drive cost savings; M&A activity to augment organic growth efforts.

Cash flow profile and balance sheet strength will support growth investment, dividend support, share repurchase, and M&A.

CEO Jeff Lorenger: 26 years with HNI, Executive Vice President and CFO V.P. Berger: 28 years with HNI; top five leaders with over 90 years of pertinent industry experience.

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Company Overview

HNI Corporation is a manufacturer of workplace furnishings and residential building products. The company operates

under two segments. The workplace furnishings segment is a leading designer and provider of commercial furnishings going to market under multiple unique brands. The residential building products segment is the nation's leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, facings, and accessories.

HNI Corporation At-A-Glance:

Ticker: HNI (NYSE)

Market Cap: ~$2.04B (as of March 18, 2025)

Enterprise Value: ~$2.36B (as of March 18, 2025)

TTM Revenue: $2.53B*

TTM Non-GAAP EBITDA: $322.7M*

2024 Cash Dividends: $63.6MM

Five-Year Average Free Cash Flow: $137M (>$3.00/share)

Headquarters: Muscatine, Iowa

Manufacturing Facilities: United States, Mexico, and India

*As of Q4:24; Segment EBITDA excludes General Corporate Expense

Segment Revenue Breakdown*

Segment Non-GAAP EBITDA Breakdown*

TTM Workplace Furnishings Revenue Mix*

TTM Residential Building Products Revenue Mix

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Profitable Growth Strategic Framework

While HNI's unique corporate-wide focus three pillars:

Member-Ownerculture remains our foundation, our and members' efforts are centered on the following

Customer 1st

Mindset

Effortless Winning

Experiences

Own Operational

Excellence

delivering annual productivity and

cost savings, allowing us to grow5 earnings and invest in our future.

Track Record

Revenue History

Non-GAAP EBITDA History

Free Cash Flow History

Dividend History

Non-GAAP ROIC History

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Workplace Furnishings

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Workplace Furnishings Overview

Workplace Furnishings Revenue History

Workplace Furnishings EBITDA History

HNI is a leading global office furniture company

Brand positioning

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Diverse Revenue Streams

Workplace Furnishings

Workplace Furnishings

TTM Revenue Mix*

Contract

Small and

Medium

Businesses

Small and Medium Businesses

Contract Channel

HNI

Brands

Asian Imports

Key

Global

Competitors

MillerKnoll

Steelcase

Haworth

Core,

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Our price point breadth and channel reach are unmatched.

sweet spot

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More than half of our North American Workplace Furnishings revenue comes from small-

and medium-sized businesses.

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*As of Q4:24

Workplace Furnishings Margin Expansion

initial projection provided when the

$80-85M

deal was announced in mid-2023.

▪ Hickory consolidation - in May 2024,

~$60M

we announced plans to optimize our

manufacturing network, which

involves consolidating our Hickory,

NC, manufacturing facility. Total

~$35M

savings of $11 million by the end of

2026 are included in KII synergies.

▪ Mexico facility ramp - total net

$10M

savings expected to reach $20-$25

million by the end of 2026.

Disclaimer

HNI Corporation published this content on March 18, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 19, 2025 at 11:22:06.723.