Pursuing a Clear Strategy to Deliver Shareholder Value

Tempur Sealy has taken decisive action to adapt to an evolving competitive landscape and position the Company for long-term growth and success. In addition to the acquisition of Sealy Corporation, Tempur Sealy reinvented its entire range of mattress and adjustable base product offerings, improved economics for its retail partners to increase advocacy for its products and strengthened its marketing campaigns. As a result of these steps, Tempur Sealy has the foundation in place to continue successfully executing on its strategic priorities to generate growth and enhanced shareholder value creation.

Recognizing the Sealy Opportunity

In 2012, Tempur-Pedic's Board and management team, led by Chief Executive Officer Mark Sarvary, recognized in Sealy an attractive opportunity for Tempur-Pedic and its shareholders. The transformative acquisition of Sealy not only created the world's largest bedding provider, but also contributed to an over 100% stock price appreciation in Tempur Sealy since the announcement of the transaction, creating an additional approximately $1.8 billion in equity value for shareholders¹.

Track Record of Accomplishing Strategic Goals

The Tempur Sealy Board and management team have delivered on several key
objectives that help position the Company for long-term growth by:

• Driving value through the successful, nearly completed Sealy integration;
• Returning Tempur North America to strength and profitability;
• Positioning Tempur International for enhanced growth by increasing distribution, brand awareness and product offerings; and
• Generating substantial cash flow, reducing debt and enhancing flexibility to enable future return of capital to shareholders.

Poised to Deliver Long-Term Sales and Earnings Growth

With Tempur Sealy's strengthened foundation in place, the Company is confident that the continued execution against its strategic priorities will result in strong growth between 2015 and 2018, including²:

• 6% net sales growth;
• 50 basis points of operating margin improvement; and
• 15% growth in adjusted earnings per share (EPS), including achieving an adjusted earnings per share (EPS) target of $4.00 in 2016³.

Intensely Focused on Enhancing Margins

Enhancing margins and driving profitability remain an important priority at Tempur Sealy. The Company expects to generate approximately $125 million in operating income improvement by 2018⁴ by:

• Improving Sealy's U.S. gross margins;
• Achieving additional cost synergies from the Sealy acquisition;
• Reducing operating expense; and
• Implementing enhanced 2015 pricing strategy.

Board and Management Team Delivering Solid Results and Driving Shareholder Returns

Under the Board's oversight and since Mr. Sarvary's appointment in 2008, Tempur Sealy has:

• Realized a total shareholder return of more than 480%, more than five times that of the S&P 500⁵;
• Increased total net sales by more than 220%, including the acquisition of Sealy;
• Grown adjusted EPS by more than 180%⁶; and
• Increased its share price 8% in the last year, 30% in the last two years and more than 86% over the last five years⁷.