HNI Corporation - Why Invest

Investment Thesis

Our two differentiated business segments each possess cyclical, secular, and company-specific growth drivers. These diversified revenue streams should be complemented by multiple margin expansion opportunities, strong free cash flow potential, and modest financial leverage.

1

Enhancing two differentiated business segments

Revenue to benefit from cyclical recovery, secular post-pandemic drivers, and company-specific initiatives.

2

Improving overall company margin profile

Maintain industry-leading profitability in Residential Building Products; focus on margin expansion in Workplace Furnishings as part of our Strategic Framework.

3

Continuing to drive strong cash flow

Free cash flow consistently exceeds net income; supporting growth investments and shareholder returns.

4

Taking advantage of balance sheet flexibility

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

5

Seasoned management team

CEO Jeff Lorenger: 25 years with HNI, CFO Marshall Bridges: 21 years with HNI; top five leaders: total of 90 years of pertinent industry experience.

6

Attractive valuation and dividend yield

Support from: diversified revenue streams, exposure to faster-growing markets and secular trends, cash flow and dividend consistency, and balance sheet strength.

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HNI Corporation At-A-Glance (KPI)

$1.6B

Market cap

(as of 10/31/2023)

$2.1B

Enterprise Value

(as of 10/31/2023)

$2.32B

TTM Revenue* (as of Q3 2023)

$237.3M

TTM Non-GAAP EBITDA* (as of Q3 2023)

$485M

Net Debt (as of Q3 2023)

* pro forma to include Kimball International

Click here for Non-GAAP measures reconciliation

* adjusted for Lamex sale and eCommerce restructuring in 2022