InvestorPresentation
4th Quarter 2017
Forward Looking StatementsThis presentation contains "forward-looking" statements based on current expectations regarding future plans, events, outlook,objectives and financial performance, expectations for future sales growth and earnings per diluted share (GAAP and non-GAAP).Forward-looking statements can be identified by words including “expect,”“believe,”“anticipate,”“estimate,”“may,”“will,”“would,”“could,”“confident”or other similar words, phrases or expressions. Forward-looking statements involve known and unknown risksand uncertainties, which may cause the Corporation's actual future results and performance to differ materially from expectedresults. These risks include but are not limited to: general economic conditions in the United States and internationally;unfavorable changes in the United States housing market; industry and competitive conditions; a decline in corporate spending onoffice furniture; changes in raw material, component or commodity pricing; future acquisitions, divestitures or investments; the costof energy; changing legal, regulatory, environmental and healthcare conditions; the Corporation’s ability to successfully completeits business software system implementation; the Corporation’s ability to implement price increases; changes in the sales mix ofproducts; the Corporation's ability to achieve the anticipated benefits from closures and structural alignment initiatives; and forcemajeure events outside the Corporation’s control. A description of these risks and additional risks can be found in theCorporation's annual and quarterly reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q. TheCorporation undertakes no obligation to update, amend or clarify forward-looking statements.
Market Leader
3
Office Furniture Hearth
#2 Market Position #1
$2.2BSales
24%76%
Office Furniture
76%
Hearth24%
Supplies Driven
Contract & Other
Sales Channels
HearthOffice Furniture
4
New Construction
Retail Wood & Gas Products
Market DriversOffice Furniture
Source: The Conference Board
CEO Confidence
Total Construction Spending: Office
Source: U.S. Bureau of the Census
Small Business Confidence
Source: National Federation of Independent Business
5
0
10
20
30
40
50
60
70
80
Line represents overall positive vs negative sentiment
Source: Bureau of Labor Statistics
CES Industries: Financial Activities, State and Local Government, Federal Government, Other Services, Professional Business Services, Information, and Education and Health Services
Service Sector Employment
Milli
ons
72
74
76
78
80
82
84
86
80
85
90
95
100
105
110
15 yr. avg: 96
20
30
40
50
60
70
80
90
100
Billi
ons
Single Family Housing Starts
Source: U.S. Census Bureau
Sea
sona
lly A
dj. A
nnua
l Rat
e (K
)
Residential Remodeling Index
Source: Hanley Wood
Oil Prices
Source: U.S. EIA
Market DriversHearth Products
US TemperaturesVariance from Average
Source: U.S. NOAA 6
-4
-2
0
2
4
6
8
Deg
ree
Average
-
200
400
600
800
1,000
1,200
1,400
$0
$30
$60
$90
$120
$150
$0
$1
$2
$3
$4
$5
Dollars per BarrelD
olla
rs p
er G
allo
n
Heating Oil Crude-Brent
60
70
80
90
100
110
120
Breadth and Depth
DistributionBrands
Products Price Points
Tuned and tailored
Solutions for every need High to low
Broadest coverage
7
HouseOf
Brands
Split and Focus
8
LeverageMember Owner Culture with Lean
Supplies--Driven Channel Contract ChannelContractRetail Commercial Image
Herman Miller
Knoll
Steelcase
Haworth
Global
Asian Imports
Market CoverageOffice Furniture
North America
9
HNIBrands
KeyCompetitors
Core, sweet spot
Retail less than 1%
`̀ `̀
`̀
10
New Construction Channel Remodel/Retrofit Channel Specialty Dealer DIY
HNIBrands
KeyCompetitors
Core, sweet spot
`̀
Niche Competitors
Travis
Napoleon
Installing Distributors
Innovative Hearth Products (IHP)
Market CoverageHearth Products
$ in
mill
ions
Operating Cash Flow
Dividends
Solid financial position• Conservative leverage: Debt/EBITDA 1.4x
Significant cash flow generation• Economic profit focus/alignment
Committed to strong dividend• Sustainable and increasing
11
Financial Strength
$0.16
$0.18
$0.20
$0.22
$0.24
$0.26
$0.28
$-
$50
$100
$150
$200
$250
$300
$350
Current Outlook
FY17 Outlook
Non-GAAP EPS $1.88 to $1.95
(PY $2.62)
Up 1 to 4 percent, organically
Down 2 to 5 percent
Up 2 to 5 percent
FY18 Outlook
Non-GAAP EPS $2.15 to $2.65
Up 1 to 4 percent
Up 3 to 6 percent
HNI Earnings Per Share
Office FurnitureNet Sales
Hearth Net Sales
12
2018 Guidance Bridge
13
Incremental Profit
Office 25%Hearth 30%
Price offsetting inflation
Core productivity
&Structural
cost
Amortization&
Comp reset
North America Office Furniture
Structural Cost Benefits
Other Businesses
HearthNew Construction
Long-Term Earnings Growth
$ Growth opportunities
$0.40 - $0.60
$ Structural cost savings
+$0.20
$ Continued growth in single family housing
$0.45 - $0.65
$ Core growth
$0.60 - $0.80
14