Investor Deck
March 2015
Leader in a Growing Market
Top Mattress Specialty Retailers(1)
Sleep Train and Back to Bed acquisitions strengthen Mattress Firm’s position as the #1
Mattress Specialty Retailer in the fragmented retail bedding environment
(1) Source: Furniture Today Top 100, May 2014
(2) 2012 and 2013 net sales for Mattress Firm assume that The Sleep Train, Inc. and the Back to Bed and Bedding Experts retail operations, all recent acquisitions by Mattress Firm, were owned by Mattress Firm for the
full 2012 and 2013 fiscal years and include Mattress Firm franchisee net sales. For financial reporting purposes, in accordance with generally accepted accounting principles in the United States, we do not include
franchisee net sales in our total net sales. In 2013, Mattress Firm net sales exclusive of franchisee net sales accounted for $1.21 billion, Mattress Firm franchisee net sales accounted for $169.8 million, Sleep Train net
sales accounted for $471.2 million, Back to Bed and Bedding Experts net sales accounted for $106.0 of the Mattress Firm sales reported in the chart above. See our pro forma financial statements, filed with our
Current Report on Form 8-K/A filed with the SEC on December 3, 2014 for more information on the pro forma impact of the Sleep Train Acquisition
(3) Reflects net sales of the respective retailers divided by the estimated size of the U.S. mattress retail market in 2013; Furniture Today 2014 Retail Planning Guide
($ in millions)
Rank Company
2013
Stores
2013
Sales
Year-Over-
Year Sales
Growth
Market
Share (3)
1 Mattress Firm (2) 1,791 $1,964 14.2% 14.2%
2 Sleepy’s 939 1,000 2.5% 7.2%
3 Sleep Number 440 922 2.3% 6.6%
4 America’s Mattress 395 314 4.9% 2.3%
5 Sit ‘n Sleep 31 99 2.9% 0.7%
6 Innovative Mattress Solutions 150 93 (3.1%) 0.7%
7 Mattress Warehouse 165 91 7.1% 0.7%
8 American Mattress 92 67 (4.3%) 0.5%
Total 4,003 $4,551 7.2% 32.7%
Market Leading Position
3
0.332
0.357
0.3770.386
0.280
0.293
0.250
0.270
0.290
0.310
0.330
0.350
0.370
0.390
(Units)
Wholesale Mattress Shipments per Household(2) Wholesale Mattress and Foundation AUP(2) (3)
(1) Source: Better Sleep Council Study – January 2007
(2) Source: ISPA – 2013 Mattress Industry Report of Sales & Trends
(3) Source: ISPA – Mattress Industry U.S. Market Forecast issued October 2014
1995 1998 2001 2004 2007 2010 2013
$93.7
$210.3
$75
$95
$115
$135
$155
$175
$195
$215
1994 1998 2002 2006 2010 2014F
(Dollars)
Everyone sleeps
Mattress sales are primarily replacement in nature with an ~10 year purchase cycle (1)
25 year industry CAGR of 5.2%
Long-Term Industry Expansion
4
Furniture
Retailers35%
46%
Department
Stores5%
Other
14%
Furniture
Retailers56%
19%
Department
Stores11%
Other
14%
Uniquely Insulated
1993 2012
(1) Source: Furniture Today, September 2013
Mattress
Specialty
Retailers
Mattress
Specialty
Retailers
Consumers demand expertise and prefer destination shopping
Mass merchants not meaningful industry participants
Mattress specialty retailers taking share (1)
5
90%
5%5%
Click Fuels Brick
6
Consumers primarily use web for education in this category
Retailers with a brick and mortar presence capture 95% of total retail sales (1)
(1) Source: A.T. Kearney analysis. On Solid Ground: Brick and Mortar is the Foundation of Omnichannel Retailing. July 2014
(2) Source: Forrester Research US Online Retail Forecast (includes furniture and mattress sales)
Pure-play online sales (5%)Multichannel online sales (5%)
Physical store sales
95%
store-related
Total U.S. Retail Sales (2013)
5%
95%
TOTAL online sales
Physical store sales
Total U.S. Furniture Sales (2013)
Less vulnerable to online cannibalization and showrooming
10%
Proven Growth Strategy
2009 2014
2009 2014 2009 2014
2009 2014
2009 2014
Driving
Profitability
Model
Market Penetration
Relative Market Share
Incremental Advertising Market Profitability
Comp Sales
ADV SpendADV per Capita
Store CountStores per Capita
Sales per Store
Adj. EBITDA $Adj. EBITDA Margin %
$0.38 $1.51
Leadership
Fortress
Developmental Developmental
Leadership
1:112k 1:51k
29 stores
13 stores
$0.6mm
$2.2mm
$0.9mm
$1.2mm
$1.9mm
16.9% 20.4%
Case Study: Jacksonville
RMS is Our Core Growth Strategy
$1.9mm
$6.7mm
8 *Note: Internal estimates
Consistent, Strong Organic Growth
Double digit organic store growth 7 out of the last 8 years
9
41
71
37
86
106
118
154
232
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014
Growth
Rate %*14% 18% 8% 18% 18% 16% 15% 19%
*Note: Annual store unit growth over base
Note: Analysis applies only to Mattress Firm stores
(1) Includes approximately $40,000 in Year 1 for vendor funds collected upon store opening
(2) Store 4-wall profitability divided by net store investment
(3) Reflects midpoint of respective ranges
Store 4-wall profitability drives improving leverage over market-level costs as store
penetration increases
Representative New Store Investment
($ in thousands) Average
Investment
Buildout and Equipping Cost $232
Floor Sample Inventory 24
256
Less: Tenant Reimbursement (43)
Cash Requirement, Net $213
New Store Results(1)
($ in thousands) Year 1 Year 2
Sales $950 $1,000
% Growth 0% - 10%
Store 4-Wall Profitability(2) $233 $245
% of Sales 23-26%23-26% 23-26%
Annual Cash on Cash Return(3) 109% 115%
Stores Generate Cash on Cash Payback <1 Year
Strong New Store Economics
10
(100)
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014
Balanced Approach to High Growth
Organic + Acquisitions = Robust Expansion
800
900
Closed stores Organic stores Acquired stores11
Austin, Dallas, Houston, San Antonio, Las Vegas
36 stores
2007
26 stores
Phoenix
2006
14 stores
Las Vegas
2007
34 stores
Colorado Springs, Denver, Wichita
2014
Yotes Franchise
10 stores
St. Louis
2007
Yotes Franchise
25 stores
Virginia Beach
2010
Houston
13 stores
2007
40 stores
Atlanta, Miami, SW Florida, Tampa
2012
27 stores
Charleston, Charlotte, Columbia, Greensboro,
Greenville, Raleigh
2012
236 stores
Atlanta, Minneapolis, St. Louis | Houston, Dallas,
Jacksonville, Miami, Orlando, SW Florida, Tampa
2011, 2012
39 stores
Green Bay, Madison, Milwaukee, Wausau
2013
Perfect Mattress Franchise
Online Retailer
2013
Nationwide
55 stores
Dallas, Austin
2014
75 stores
Colorado Springs, Denver, Phoenix,
Tucson
2014
15 stores
Pittsburgh
2014
131 stores
ChicagoOrlando
2014
314 stores
California, Hawaii, Idaho, Nevada and
Washington
2014
Note: Back to Bed includes Bedding Experts and Mattress Barn. Sleep Train includes Sleep Train, Sleep Country, America’s Mattress of Hawaii and Got Sleep? Does not include acquisitions prior to 2006. Does not include acquisitions of fewer than 10 stores
47 stores
Phoenix, Tucson
2014
Opportunistic Acquisitions Key Driver of Growth
12
RMS Drives Profits
13
-15%
-10%
-5%
0%
5%
10%
15%
20%
2010 2010.5 2011 2011.5 2012 2012.5 2013 2013.5 2014 2014.5
2011 2012 2013 2014
Ending Store Count 28 89 92 98
Sales per Store $0.7m $0.8m $0.9m $1.1m
Stores per Capita 1:232k 1:73k 1:72k 1:67k
Adv per Capita $0.23 $1.00 $1.32 $1.32
A:S 8.7% 11.8% 10.0% 8.6%
-$1.7m
-$1.6m
+$4.7m
+$13.6m
x
Mattress Giant (45 stores; May 2012)
x
Miami (MSA) Case Study
Scale: Key ingredient to profitability
Ma
rke
t L
eve
l E
BIT
DA
%
Mattress Xpress (20 stores; Sept 2012)
YE YE YE YE YE
*Note: Internal estimates
$0.49$0.82
$1.55
$0.9mm
$1.0mm
$1.2mm6.6%
11.2%
17.1%
Developmental Leadership Fortress
Market Penetration Highly Correlated to Profitability
Penetration level(stores per capita)
1:>170k 1:90k – 170k 1:<90k
% of Store Base 7% 20% 73%
Market
Level
Adjusted
EBITDA(2)
Sales per
Store(2)
Advertising $
Per Capita(2)
Note: Internal estimates
(1) Based on fiscal year 2014 results, includes 76% of total stores (excluding markets open less than one year and STI)
(2) Annualized weighted average of stores in each category
(1)
% of Sales: 11.3% % of Sales: 9.4% % of Sales: 8.3%
Occupancy 19.7%
Occupancy 15.5%
Occupancy 13.3%
FY 2014
14
BRAND New Growth Story
Sleep Train Acquisition Update
Acquired in October 2014
Comparable store sales trends remain solid at
~6% in Q4 (not included in comparable store base)
Infrastructure integration proceeding as expected
Create leadership position consistent with RMS
strategy
Consolidate Sleep Country and Mattress
Discounters to Sleep Train
The West Coast is significantly less penetrated
than the rest of the chain, leaving ample room for
store expansion
Opportunity to enhance market penetration to
fortress
16
Note: Includes franchise locations, as of February 3, 2015
Aggressive Growth Created National Footprint
Opportunities to leverage national distribution, advertising & omni-channel
17
Note: Includes franchise locations, as of February 3, 2015; penetration defined as total units (including franchise locations) divided by the population of the respective states
Fortress 1:<90k
Leadership 1:90k – 170k
Development 1:>170k
Significant Runway Ahead
Only four states at fortress penetration today
18
Multi-Brand Opportunity
19
Stores ~1,750 ~312(1) ~32
Served Pop.(2) ~143m ~31.5m ~10.5m
Potential Pop. ~315m ~135m TBD*
Stores/Pop. ~1:90k ~1:135k TBD*
Incremental
Potential~1,750 ~685 TBD*
Selection
Comfort by Color
Value
Bulk Buy
Experience
Consultative Process
Segmenting the market increases long-term potential
*Note: Mattress Pro is still in test phase
(1) After conversion of Sleep Country, Mattress Discounters and Sleep Experts stores, expected to be completed in 2015.
Organic Growth Plan Through 2017
20
2,094
600150 120
2,700+
4,500+
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Store Count
FY2014
MFI STI Closed/
Relocated
Potential Store
Count FY2017
Potential Store
Count
FY2015 – FY2017
MFI –
1,750
STI– 312
STI –
+550
MFI –
+1,250
Mattress Pro -
32Mattress Firm (MFI)
Sleep Train (STI)
Expansion primarily through new stores in existing markets and the in-fill of recently acquired markets
Long-term potential for at least 4,500 stores in the United States
Anticipated Store Unit Growth (1)
(1) After conversion of Sleep Country, Mattress Discounters and Sleep Experts stores, expected to be completed in 2015.
Scale Drives Unique Opportunities
Advertising & Scale Generate Interest
22
Mattress Firm leads interest in major served markets (example below is Texas)
Interest aligns with relative market share model and advertising
The numbers on the graph reflect how many searches have been done for a particular term, relative to the total number of searches done on
Google over time. They don't represent absolute search volume numbers, because the data is normalized and presented on a scale from 0-100.
Each point on the graph is divided by the highest point, or 100. When we don't have enough data, 0 is shown.
Source: Google Trends
Mattress Firm Manufacturer A Competitor B
Leading share of voice in major markets
#1
#2
Google Interest Over Time in Texas
Marketing Scale Allows Demand Creation
23
TERMINALLEVI REJUVEN
~60% of beds
replaced are over
8 years old (2)
Relieve
aches &
pains
Better Nights
=
Better Days
(1) Source: Institute of Medicine. Sleep Disorders and Sleep Deprivation: An Unmet Public Health Problem. Washington, DC: The National Academies Press; 2006.
(2) Source: Ideaology – Ipsos DuraTrend Findings for Mattress Firm, January 2014
Trademarked Replace Every 8 messaging drives awareness
Up to 50% of Mattress Firm advertising dedicated to needs and benefits versus price
50 – 70 million Americans are not sleeping well (1), yet only
~1% are in the market for a mattress any given month (2)
Buying Power Enables Margin Expansion
24
Pillows Mattresses Headboard/
Footboard
Long-term private label potential ~25% – 30% of retail sales
79%
15%
FY14 Volume
~$285m
Emerging Omni-Channel Platform
25
Digital 2014 YOY Revenue Growth @ +42%
2014 YOY Web Traffic Growth @ +79%
Logistics Rapidly expanding national
Same-day Delivery footprint
Pop Up Retail Channel exposes+30mm consumers
to MFRM brands annually
Brick & Mortar Over 2,100 convenient
locations to ‘try before buy’
and pickup in store
Investing in interconnected capabilities;
well positioned to capitalize on future opportunity
Financials
$57.1 $87.5
$121.0 $140.0
$190.2
$0$20$40$60$80
$100$120$140$160$180$200$220$240
2010 2011 2012 2013 2014
$494 $704
$1,007 $1,217
$1,806
2010 2011 2012 2013 2014
Note: Fiscal year ended January of the following year; figures do not include pro forma adjustments for recent acquisitions and annualization of new store EBITDA
(1) Reflects Adjusted EBITDA; excludes expenses referenced in March 19, 2015 press release
Strong historical sales growth through new store openings, same store sales growth and
acquisitions
Actual Annual Adjusted EBITDA Performance(1)
($ in millions)
Annual Net Sales Performance($ in millions)
Sales Momentum Driving Increasing EBITDA
27
28
Guidance53 Weeks Ended
Feb. 3, 2015
52 Weeks Ended
Feb. 2, 2016 % Growth
New Store Growth (Net) 201 200 – 220 --
Acquired Store Growth 668 -- --
Net Sales (in millions) $1,806 $2,465 - $2,515 38%
Comparable-Store Sales Growth 6.1% Low Single Digit --
Adjusted EBITDA (in millions) $190 $268 - $280 44%
GAAP EPS $1.27 $2.40 - $2.60 97%
Adjustments $0.76 $0.10 --
Adjusted EPS $2.03 $2.50 - $2.70 28%
Adjusted Cash EPS $2.99 $3.80 - $4.00 30%
Diluted Share Count (in millions) 34.8 35.7 --
Adjusted Tax Rate 39.5% 39.8% --
D&A (in millions) $47 $68 45%
Interest Expense (in millions) $22 $42 92%
Stock-based Compensation Expense (in
millions)$8 $10 23%
Net Capital Expenditures (in millions) $72 $95 32%
Ending Net Debt (in millions) $757 $700 -7%
Years at
Mattress
Firm/Sleep
Train
Years of
Relevant
Experience Experience
Steve Stagner
Chief Executive Officer20 22
Dale Carlsen
President & Chief Strategy Officer29 34
Ken Murphy
Co-Chief Operating Officer15 16
Rob Killgore
Co-Chief Operating Officer28 28
Alex Weiss
Chief Financial Officer2 11
Karrie Forbes
Chief Business Officer17 17
Craig McAndrews
Chief Learning Officer9 22
Mike Wilson
Chief Marketing Officer7 30
Bruce Levy
SVP of Real Estate & Development7 28
Kindel Elam
General Counsel2 10
Sam Woods
SVP of Sales & Operations17 20
Brian Baxter
SVP of Merchandising11 24
Franchise Owner
Franchise Owner
Franchise Owner
Experienced and Invested Management Team
29
Key Investment Highlights
Driving Profitability
Through Our Relative
Market Share (RMS) Model
Compelling Industry
Dynamics
Leading Specialty Retailer
Highly Achievable
Growth Plan
Experienced and Invested Management
Team
30