![](https://capedge.com/proxy/8-K/0000827187-06-000004/investorpresentation1.jpg)
Eighth Annual ICR XChange
January 13, 2006
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2
NASDAQ: SCSS
www.selectcomfort.com
Statements used in this presentation that relate to future plans, events, financial results or performance are forward-looking statements that are subject to certain risks and uncertainties including, among others, such factors as our ability to continue to successfully execute our strategic initiatives and growth strategy; the efficiency and effectiveness of our advertising and marketing programs; consumer acceptance of our products, new product offerings and brand image; our ability to execute our retail store distribution strategy; our ability to execute our wholesale distribution strategy; our ability to maintain cost-effective sales, production and delivery of our products; inflationary pressures caused by rising fuel and commodity costs; the impact of outstanding litigation claims, including the potential impact of any adverse publicity; competitive trends in the bedding industry; uncertainties arising from general economic conditions, consumer confidence and global events, as well as the risk factors listed from time to time in the company’s filings with the SEC, including the company’s Annual Report on Form 10-K and other periodic reports filed with the SEC.
Forward Looking Statements
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3
NASDAQ: SCSS
www.selectcomfort.com
Corporate Profile
Founded 1987, went public in 1998, headquartered in Minneapolis, MN.
Ranked as #1 U.S. bed retailer.
Operate a vertically integrated business model: We design, make and sell the Sleep Number® bed and a complete line of personal comfort accessories.
90% of revenue is direct-to-consumer (online, telephone and through nearly 400 company-owned stores), remaining 10% is wholesale (including QVC, Radisson Hotels and Resorts and retail partnerships).
Hold 26 U.S. patents and 19 foreign patents regarding certain elements of our air control systems, remote control systems, air chamber features and other technology, systems and features.
Completed management turnaround in 2001; profitable since June-01 (17 consecutive quarters), and debt-free since March-03.
Advantaged cash flow model – self-funding growth and expansion.
![](https://capedge.com/proxy/8-K/0000827187-06-000004/investorpresentation4.jpg)
4
NASDAQ: SCSS
www.selectcomfort.com
Revenue ($ in Millions)
$1200
0
Demonstrated Performance
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5
NASDAQ: SCSS
www.selectcomfort.com
Net Operating Profit ($ in Millions)
$150
$(50)
0
Demonstrated Performance
![](https://capedge.com/proxy/8-K/0000827187-06-000004/investorpresentation10.jpg)
6
NASDAQ: SCSS
www.selectcomfort.com
Differentiated Product
Personalization
Custom comfort and
support at touch of a button
support at touch of a button
Dual adjustability – no more
compromise
compromise
Positive Consumer Trends
Health & Wellness
Demographics
-
Income
-
Aging Population
![](https://capedge.com/proxy/8-K/0000827187-06-000004/investorpresentation11.jpg)
7
NASDAQ: SCSS
www.selectcomfort.com
Sustainable Advantage
Product/Brand/Innovation
Supply Chain - Value
Distribution
Focus and Passion
-- Marketing, R&D
-- Quality, Cost, Value &
Speed
Speed
-- Supply & Delivery
-- Direct to Consumer
-- Selective
-- Systems & Management
![](https://capedge.com/proxy/8-K/0000827187-06-000004/investorpresentation12.jpg)
8
NASDAQ: SCSS
www.selectcomfort.com
Names | Position | Previous Experience | International |
Bill McLaughlin | Chairman/CEO/ President | PepsiCo/Frito Lay Pillsbury | ü |
Doug Collier | Marketing | La-Z-boy Whirlpool | ü |
Kathy Roedel | Operations | General Electric | ü |
Keith Spurgeon | Sales | Zany Brainy Toys R Us | ü |
Jim Raabe | CFO | ValueRx KPMG | |
Scott Peterson | Human Resources | Lifetime Fitness Pillsbury | |
Mike Thyken | Information Technology | Jostens Target | |
Mark Kimball | Legal | Oppenheimer Wolff & Donnelly | |
Wendy Schoppert | New Business Development | US Bancorp America West Northwest Airlines | ü |
Management Team
![](https://capedge.com/proxy/8-K/0000827187-06-000004/investorpresentation9.jpg)
9
NASDAQ: SCSS
www.selectcomfort.com