Sleep Number's mission is to improve lives through individualized sleep experiences by becoming one of the world's most beloved brands delivering an unparalleled sleep experience. Their purpose is to improve health and well-being through higher quality sleep provided by their smart beds which sense movements and adjust, and provide personalized sleep insights. They have over 14 million customers and a vertically integrated business model providing a complete brand experience from product to delivery.

2. To improve lives
by individualizing
sleep
experiences
OUR
MISSION
To become one of the world’s
most beloved brands by
delivering an unparalleled
sleep experience
OUR VISION
To improve the
health and wellbeing
of society through
higher quality sleep.
OUR PURPOSE
About Sleep Number
PURPOSE DRIVEN COMPANY

3. Our Foundation
Sleep Number
Individuality. We celebrate individuality in each other, in our own lives and in our customer’s lives. We embrace every individual’s unique
talents, perspectives and experiences and strive to create an environment where we can be our best selves. Valuing diversity, equity and
inclusion makes us stronger, smarter and fuels our innovation and teamwork. Individuality connects us to our vision of becoming one of
the world’s most beloved brands by delivering an unparalleled sleep experience.

4. SCIENCE PROVES THAT QUALITY SLEEP IS VITAL TO YOUR EMOTIONAL AND PHYSICAL HEALTH
And our smart sleepers get 28 minutes more restful sleep per night
 Senses your movements and automatically adjusts to keep you both sleeping effortlessly
 Personalized sleep insights, optimizing to continually improve your restful time asleep
 Monthly wellness reports, circadian rhythm analytics and nighttime heart rate variability measurement
 Adjustable firmness on both sides – your Sleep Number® setting – for individualized comfort and support
 Designed to help you fall asleep faster by gently warming your feet
 Designed to keep you asleep by effortlessly adjusting to your movements
 Designed with a breathable sleep surface, providing a cooler, drier sleep environment
* Based on internal analysis of sleep sessions assessing sleepers who use multiple features of Sleep Number® products. Claim based on sleepers achieving over 15 more minutes of restful sleep per sleep session
The Sleep Number 360® smart bed
4

5. Sleep Number
14+ Million Lives Improved
• $2.2B in sales
• 5,500 team members
• Nearly 700 stores across 50 states
•Technology Center in San Jose
• 2 Manufacturing Sites
• 12Warehousing / Assembly Locations
* June 2022 data

6. Exclusive Distribution
Lifelong Customer
Relationships
• Direct-to-consumer/vertically integrated
• Daily brand engagement through
SleepIQ® technology
• Loyal brand advocates; referral and
repeat > 45% of sales
• Control of our brand
• Cohesive online and in-store experience
• Highly productive stores
Proprietary Sleep Innovations
• Individualized and effortless
comfort
• Differentiated benefits of proven
quality sleep
• Innovations based on data and
sleep science
Vertically Integrated Business Model

7. COMPLETE BRAND EXPERIENCE
SUPERIOR FULFILLMENT AND
DELIVERY CUSTOMER
EXPERIENCE
INNOVATIVE
PRODUCT
PREMIUM RETAIL
EXPERIENCE

8. NETWORK EVOLUTION
2017
70%
15 Hubs
(Warehousing)
>120 Spokes
(Cross Docks)
>350k Assemblies
(In-home)
30%
NETWORK
~80%
~6 Factory/Regional DCs
(Assembly)
All beds
delivered fully assembled
30-40 Delivery DCs
(Direct Transfers)
~70-100 Spokes
(Cross Docks)
~20%
2022

9. INFLATION GEO-POLITICAL
SUPPLY CHAIN
CHALLENGES
SLOWED GDP GROWTH
What's Happening?
Extremely dynamic and complex macroenvironment impacting performance

10. Create an amazing customer experience from the bedroom back
PRODUCT IN THE
BEDROOM
MAKE
MODEL
PARTS AND
PIECES IN
OPERATIONS
REDUCE RISK BY IMPROVING FLEXIBILITY
• Inventory is our lifeblood- no matter what you're doing, that is the most precious item
• Build visibility, capability and resilience
• Breaking down silos to build optionality – supplier, product, movement
VISIBILITY CAPABILITY RESILIENCE

11. OUTCOMES
IMPROVED INVENTORY PERFORMANCE
IMPROVED RELIABILITY
STRUCTURAL LOWER COST
ENHANCED CUSTOMER EXPERIENCE

12. Sleep well, dream big!