Slides
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InvestorPresentationFirst Quarter FY27NASDAQ: MLKN
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2Forward looking statementsThis presentation includes forward-looking statements within themeaning of Section 27A of the Securities Act of 1933 andSection 21E of the Securities Exchange Act of 1934.Forward-looking statements include those relating to futureevents, anticipated results of operations, our expectationsregarding future market conditions, our business strategies, ourassessment of risks we face, and other aspects of our futureoperations or operating results.These forward-looking statements generally can be identified byphrases such as “will,” “expects,” “anticipates,” “foresees,”“forecasts,” “estimates” or other words or phrases of similarimport.It is uncertain whether any of the events anticipated by theforward-looking statements will transpire or occur, or if any ofthem do, what impact they will have on our results of operationsor financial condition or the price of our stock.These forward-looking statements involve certain risks anduncertainties, many of which are beyond our control, that couldcause actual results to differ materially from those indicated insuch forward-looking statements, including, but not limited to:–The effects of the ongoing conflict in the Middle East andbroader geopolitical instability, including with respect tonegative impacts on our supply chain, decreased sales withinthe region or beyond due to supply chain constraints or otherfactors, energy prices, and broader inflationary andmacroeconomic effects; –Changes to U.S. and international trade policies, includingnew or increased tariffs, developments relating to tariffrefunds (including the risk of clawback or reversal of tariffrefunds or the discontinuation of any additional tariffrefunds), and changing import/export regulations, whichimpact both the cost and availability of materials andcomponents used to manufacture our products as well asdemand for our products;–Challenges in implementing our growth strategy and thepossibility that the assumptions on which that strategy wasbuilt prove inaccurate;–Consumer spending levels, which have a significant impacton demand for our products within our Global Retailsegment;–Global and national economic conditions such as heightenedinflation, uncertainty regarding future interest rates, foreigncurrency exchange rate fluctuations, geopolitical instability,and potential governmental responses to these events;–Transition in the Company’s executive leadership, whichmay result in changes to our strategy or operations;–Cybersecurity threats and risks;–Public health crises, such as pandemics and epidemics, andgovernmental policies and actions to protect the health andsafety of individuals or to maintain the functioning of nationalor global economies; ‒ Risks related to the additional debt incurred in connection with our acquisition of Knoll, including increased interest expense, our ability to comply with our debt covenants and obligations, and limitations on certain business activities imposed by our credit agreement; ‒ Availability and pricing of raw materials; ‒ Financial strength of our dealers and customers; ‒ Pace and level of government procurement; and‒ Outcome of pending litigation or governmental audits or investigations.For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to MillerKnoll’s periodic reports and other filings with the SEC, including the risk factors identified in MillerKnoll’s most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. The forward-looking statements included in this communication are made only as of the date hereof. MillerKnoll does not undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
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Company Snapshot
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4COMPANY SNAPSHOT14 iconic brands. 3 strategic segments. Diverse channel go-to-market strategy driving scalable growth and robust cash flow.$3.8 billionFY26 RevenueInternational Contract17%Global Retail29%14Brands95+Retail stores600+Dealers in 110 countries>10,000Employees aroundthe globeNorth America Contract 54%%FY 2026revenue
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COMPANY SNAPSHOTMillerKnoll is a $3.8 billion global collective of 14 iconic brands, cherished by customers and the A&D community. Our strategy unlocks multiple growth and cash flow opportunities through our diverse channels.Global Retail Disciplined capital allocation and attractive dividend yield North America Contract International ContractCash generation engine with tailwinds from pent-up demand, return-to-office trends, and targeted growth and optimization initiativesHigh-margin market share opportunitiesin faster-growing, underpenetrated markets Vertically-integrated, omni-channel premium furniture retailer with significant white spaceInvestment Thesis:
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6COMPANY SNAPSHOTThe MillerKnoll ecosystem~$20B1North America Contract Market~$30B2International Contract Market~$150B3Global premium retail furniture market+~$200BTotal addressable market(1)S&P Global; internal company estimates(2)CSIL; internal company estimates(3)U.S. Census Bureau; internal company estimatesMillerKnollChannels to marketLeading Dealer Network:600+ independent dealer locations worldwideBrick & Mortar Retail:Over 95 stores globally today, growing to 130+eCommerce:Ability to serve our clients where and how they choose with significant halo growth opportunityWholesale: Wholesale, dealers, brick & mortar retail & eCommerceCatalog & Print Media
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7Offering furniture designed to create spaces where people work, heal, and learn throughout Europe, the Middle East, Africa, Asia-Pacific and Latin America–Shares strengths and competitive advantages with our North America Contract business–Efficient and reliable global hub & spoke manufacturing model with eight sites and localized sourcing–Growth drivers include expanding dealer network in new and underpenetrated markets, increasing dealer share of wallet, targeting strong regional customers along with global multinationals and focusing on high-growth regions like Asia and the Middle East–Stand-out profitability with consistent double-digit annual operating income marginOffering authentic, modern design furnishings and accessories to consumers through multiple channels and brands, including Design Within Reach and Herman Miller–Competitive differentiation from unmatched legacy and collective of authentic design brands as well as vertical integration with sourcing, quality and margin advantages–Current growth strategy focused on expanding our North America store footprint and product assortment along with driving eCommerce growth and increasing brand awareness–Scaling operations and leveraging costs in North America are expected to drive margin expansionOffering furniture and textiles designed to create spaces where people work, heal, and learn throughout U.S. and Canada－Iconic design legacy and unmatched product suite – including the world’s most sought-after task seating－Formidable distribution channel with world-class dealers－Lean, capital-efficient, reliable production capabilities－North American market tailwinds with pent-up demand and return-to-office dynamics －Growth initiatives include a focus on innovation, product development and durable industry verticals such as health care, government and higher education COMPANY SNAPSHOTMillerKnoll segmentsNorth America Contract: 54%* InternationalContract: 17%*GlobalRetail: 29%* *percent of FY2026 revenue
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814 of the world’s most dynamic design brandsunited by innovation, insight, and impact to shape a better world.COMPANY SNAPSHOTThe MillerKnoll Collective
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9Macroeconomic driversThe Conference Board – CEO ConfidenceU.S. Architectural Billings Index Corporate Profitability IndexSource: The Conference Board, August 6, 2026Other leading macroeconomic indicators include: AIA Construction Forecast, office vacancy rates, small business confidence, new home sales, luxury housing sales, and retail sales Service Sector EmploymentExisting Home Sales Univ. of Michigan – Index of Consumer Sentiment203040506070Q22024Q32024Q42024Q12025Q22025Q32025Q42025Q12026Q22026Q32026Source: The American Institute of Architects, August 19, 2026Source: Bureau of Economic Analysis, August 26, 2026(THOUSANDS OF UNITS)503040904060 4060422201000200030004000500060002022 2023 2024 2025 2026Source: Bureau of Labor Statistics, September 2026Source: Ntl. Assoc. of Realtors Real Estate & Economic Outlook, June 16, 2026HistoryForecastSource: Univ. of Michigan – Monthly Index of Consumer Sentiment, Sept 202640.045.050.055.060.065.0May-25Jun-25Jul-25Aug-25Sep-25Oct-25Nov-25Dec-25Jan-26Feb-26Mar-26Apr-26May-26Jun-26Jul-26Aug-26Sep-26303540455055606570Oct-24Nov-24Dec-24Jan-25Feb-25Mar-25Apr-25May-25Jun-25Jul-25Aug-25Sep-25Oct-25Nov-25Dec-25Jan-26Feb-26Mar-26Apr-26May-26Jun-26Jul-263,5003,7003,9004,1004,3004,5004,7004,900Q12024Q22024Q32024Q42024Q12025Q22025Q32025Q42025Q12026Q22026(BILLIONS OF DOLLARS)110115120125130135140Jan-20Apr-20Jul-20Oct-20Jan-21Apr-21Jul-21Oct-21Jan-22Apr-22Jul-22Oct-22Jan-23Apr-23Jul-23Oct-23Jan-24Apr-24Jul-24Oct-24Jan-25Apr-25Jul-25Oct-25Jan-26Apr-26Jul-26(MILLIONS OF EMPLOYEES)COMPANY SNAPSHOT
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Our Advantages
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11OUR ADVANTAGESCompetitive advantagesDesign Leadership–Celebrated iconic, enduring designs–Product leadership, including the world’s most desired task seating–Global Research & Insights team focused on workplace strategy and trends–Robust R&D and testing, with 4-year average trailing R&D spend ~2.5% of sales–Industry’s broadest & most diverse network of designer relationships –Enhanced customer outcomes–Elevated materials experience Delivering unmatched customer outcomes through design-led innovation, trusted partnerships and seamless executionOperational Excellence–Lean, highly-efficient and reliable capabilities–Localized, scalable production–Vertical integration enhances margin potential and operational control across the value chain–~5.5 million square feet of manufacturing across the globeGlobal Reach–Iconic brands and designs well-known around the world–Multiple channels to market across geographies – strong dealers, B2B and B2C–Efficient & reliable global hub & spoke manufacturing model –Broad distribution footprint
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12Global manufacturing footprintFacilities in the United States, Canada, the United Kingdom, Italy, China, Brazil, Mexico and IndiaHub-and-spoke model emphasizes sourcing and production closer to customersCapital efficient:Lean manufacturing and assemblyProducts made to order - materials and components sourced as neededHigh rate of inventory turnsScalable Lean FoundationLocalized ProductionCapital EfficientOUR ADVANTAGES
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Financial Performance
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14Historical financial performance$3.9 $4.1 $3.6 $3.7 $3.8 $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5FY22 FY23 FY24 FY25 FY26$1.92 $1.85 $2.08 $1.95 $1.86 $1.50 $1.55 $1.60 $1.65 $1.70 $1.75 $1.80 $1.85 $1.90 $1.95 $2.00 $2.05 $2.10 $2.15FY22 FY23 FY24 FY25 FY26$347 $383 $383 $360 $357 $250 $270 $290 $310 $330 $350 $370 $390FY22 FY23 FY24 FY25 FY26RevenueAdjusted EPS(1)Adjusted EBITDA(2)($ BILLIONS) ($ MILLIONS)COVID Impact YearsCOVID Impact YearsCOVID Impact Years(1)See Appendix for reconciliation of non-GAAP measures(2)See Appendix for reconciliation of non-GAAP measures FINANCIAL PERFORMANCE
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15Strong cash flow generation$(107)$80 $274 $102 $78 $(150) $(100) $(50) $- $50 $100 $150 $200 $250 $300FY22 FY23 FY24 FY25 FY26Cash Flow from Operations Free Cash Flow(1)($ MILLIONS) ($ MILLIONS)COVID Impact YearsCOVID Impact Years(1)See Appendix for reconciliation of non-GAAP measures$(12)$163 $352 $209 $200 $(50) $- $50 $100 $150 $200 $250 $300 $350 $400FY22 FY23 FY24 FY25 FY26 FINANCIAL PERFORMANCE
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16Disciplined capital allocation approachFINANCIAL PERFORMANCE (1)Excludes current portion of long-term debt Q1 FY27$179MCash$1,270MLong-term Debt (1)2.75xNet Debt to EBITDA Ratio (2)$402MRevolver Availability($ MILLIONS)DIVIDENDSSHARE REPURCHASE555756525116161388517020406080100120140160180200FY22 FY23 FY24 FY25 FY26~$97 million/yearCapital Expenditures, average past 5 yearsExpect ~$125 to $135 millionFY 2027 Capital Expenditures ~2%R&D, as a % of sales, average past 5 years38New DWR & Herman Miller Retail Store openings (net), FY 2022 to FY 20261 2 3Investing to support growthMaintaining financial flexibility and improving Net Debt to EBITDA ratioReturning capital to shareholders (2)Per the measure allowed under our bank agreement
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17 9583781081227168626155555756525116161388517$0$100$200$300$400FY22 FY23 FY24 FY25 FY26CapexR+DDividendsShare Repurchase FINANCIAL PERFORMANCEUses of cash
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18Debt maturitiesas of August 29, 2026 $312$4$5 $5$5$5$5$515$15$20 $28$328$57$0$100$200$300$400$500$600$700FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33Revolving Credit FacilityTerm Loan BTerm Loan A AR Securitization•Weighted average rate(1): ~4.5%, due to fixed interest rate swaps(1)as of August 29, 2026 FINANCIAL PERFORMANCE
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Recent Quarterly Financial Trends
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20RECENT QUARTERLY FINANCIAL TRENDSImpact of Tariff Refunds on Q1 FY2027 Financial Results$'s in millions (except per share amounts) - estimated impacts to current quarterGross Margin (Tariff Refunds)4.6$ 90 bps0.1$ 10 bps11.8$ 450 bps-$ 16.5$ 180 bpsOperating Expense (Incentive Compensation)(3.6) (70) bps(1.1) (70) bps(1.0) (40) bps(0.8) (6.5) (70) bpsOperating Income (Net Tariff Impact)1.0$ 20 bps(1.0)$ (60) bps10.8$ 410 bps(0.8)$ 10.0$ 110 bpsAdjusted Earnings Per Share (Net Tariff Impact)0.11$ North America Contract International Contract Global Retail Corporate Consolidated
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21RECENT QUARTERLY FINANCIAL TRENDS (1) See appendix for reconciliation of non-GAAP measures and refer to Slide 20 for impacts from IEEPA tariff refunds to these amounts. Quarterly Net Sales + OrdersQuarterly Adjusted Operating Expenses(1)($ MILLIONS)Adjusted Gross Margin and Adjusted Operating Margin(1)($ MILLIONS) (% NET SALES)Net Sales OrdersSpecial ChargesAdj Gross Margin % Adj Op. Margin %38.5%39.0%38.1%39.5%41.8%6.3%5.9%5.7%6.9%7.1%0.0%10.0%20.0%30.0%40.0%50.0%Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27$955.7 $955.2$926.6$1,004.2$923.4$885.4$972.5$931.6$971.5$913.902004006008001,0001,200Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27$308.0$316.3$300.0$327.7$320.1050100150200250300350400Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27Reported Q1 FY27 net sales decreased 3.4% and orders increased 3.2% from the prior year. On an organic basis, sales decreased 3.3%(1)and ordersincreased 3.5%(1).Adjusted Gross margin in Q1 FY27 increased 330 basis points from prioryear(1).Earnings per share - diluted in Q1 FY27were $0.38 on a reported basis and $0.53(1)on an adjusted basis, compared to earnings per share – diluted of $0.29 last year on a reported basis and earnings per share of $0.45(1)on an adjusted basis.
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22RECENT QUARTERLY FINANCIAL TRENDS (1)See appendix for reconciliation of non-GAAP measures Quarterly Cash Flow from OperationsNet Debt to EBITDA Ratio (1)(Q1 FY27)Quarter-End Cash and Long-Term Debt Balances (2)($ MILLIONS) ($ MILLIONS)CashDebt2.75x$9$65$61$65$49010203040506070Q1 FY26 Q2 FY 26 Q3 FY26 Q4 FY26 Q1 FY27$167 $180 $175 $168 $179 $1,328 $1,321 $1,278 $1,261 $1,270 $0$200$400$600$800$1,000$1,200$1,400Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27(2)Excludes current portion of long-term debt
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GUIDANCE Q2 FY2027 and Full Y ear FY 2027 Guidance* Q2 FY27$972 million to $1.012 billionRevenue38.3% to 39.3%Gross Margin %$321 million to $331 millionAdj. Operating Expenses**$15.8 million to $16.8 millionInterest & Other Expense, Net21.0% to 23.0%Adj. Effective Tax Rate**$0.43 to $0.49Adj. Earnings Per Share, Diluted**Full Year FY27Previous GuidanceCurrent Guidance$3.93 billion to $4.13 billion$3.88 billion to $4.03 billionRevenue$1.85 to $2.15$1.85 to $2.15Adj. Earnings Per Share, Diluted**(*) As provided in the earnings press release dated September 22, 2026.(**) Items indicated represent Non-GAAP measures. The Q2 FY2027 outlook excludes an expected $5.7 million in operating expense charges related to amortization of Knoll purchased intangibles as well as the related tax and earnings per share impact. The Company does not reconcile forward-looking non-GAAP measures because certain items that impact such measures are outside of the Company’s control and/or cannot be reasonably predicted. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period.. See appendix for more information on non-GAAP measures.
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AppendixNon-GAAP Financial Measures and Other Supplemental Data
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25NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATANon-GAAP Financial Measures and Other Supplemental DataThis presentation contains non-GAAP financial measures that are not in accordance with, nor an alternative to, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures presented by other companies. These non-GAAP financial measures are not measurements of our financial performance under GAAP and should not be considered an alternative to the related GAAP measurement. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP . Our presentation of non-GAAP measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included within this presentation. The Company believes these non-GAAP measures are useful for investors as they provide financial information on a more comparative basis for the periods presented.The non-GAAP financial measures referenced within this presentation may include: Adjusted Effective Tax Rate, Adjusted Operating Earnings (Loss), Adjusted Operating Margin, Adjusted Earnings per Share, Adjusted Operating Expenses, Adjusted EBITDA, Adjusted Bank Covenant EBITDA, Adjusted Gross Margin, Free Cash Flow and Organic Growth (Decline). Adjusted Effective Tax Raterefers to the projected full-year GAAP tax rate, adjusted to exclude certainunusual or infrequent events that are expected to significantly impact that rate.Adjusted Operating Earnings (Loss)represents reported operating earnings less amortization of Knollpurchased intangibles, restructuring charges and CEO transition costs. These adjustments are furtherdescribed on slide 26.Adjusted Operating Margin is calculated as adjusted operating earnings (loss) divided by net sales.Adjusted Earnings per Share - Diluted represents reported diluted earnings per share excluding the impact from amortization of Knoll purchased intangibles, integration charges, restructuring expenses, impairment charges, Knoll pension plan termination charges, debt extinguishment charges, CEO transition costs and the related tax effect of these adjustments. These adjustments are further described on slide 26.Adjusted Gross Margin represents gross margin plus restructuring charges. These adjustments are further described on slide 26.Adjusted Operating Expenses represents reported operating expenses excluding restructuring charges, amortization of Knoll purchased intangibles, and CEO transition costs. These adjustments are further described on slide 26.Adjusted EBITDA is calculated by excluding income tax expense, interest income and expense, depreciation and amortization expense, impairment charges, CEO transition costs, restructuring and integration charges from net income. Adjusted Bank Covenant EBITDA is calculated by excluding depreciation, amortization, interest expense, taxes from net income, and certain other adjustments. Other adjustments include, as applicable in the period, charges associated with business restructuring actions, acquisition and integration charges, impairment expenses, non-cash stock-based compensation, future synergies, and other items as described in our lending agreements.Free Cash Flow represents net cash provided by (used in) operating activities less capital expenditures.Organic Growth (decline)represents the change in sales and orders, excluding currency translation effects.
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26NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAThe adjustments to arrive at these non-GAAP financial measures are described further below:Amortization of Knoll purchased intangibles: Includes expenses associated with the amortization of acquisition related intangibles acquired as part of the Knoll acquisition. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. We exclude the impact of the amortization of Knoll purchased intangibles as such non-cash amounts were significantly impacted by the size of the Knoll acquisition. Furthermore, we believe that this adjustment enables better comparison of our results as Amortization of Knoll Purchased Intangibles will not recur in future periods once such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Although we exclude the Amortization of Knoll Purchased Intangibles in these non-GAAP measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generationIntegration charges: Knoll integration-related costs include severance, asset impairment charges associated with lease and operations facility consolidation activity, and expenses related to synergy realization efforts and reorganization initiatives. Restructuring charges:Includes costs associated with actions involving targeted workforce reductions, facility consolidation charges, and accelerated depreciation of fixed assets. Impairment charges: Includes non-cash, pre-tax charges for the impairment of the Knoll and Muuto trade names as well as impairment of goodwill attributed to the Global Retail and Holly Hunt reporting units. CEO transition costs: Includes one-time expenses consisting primarily of severance, benefits and advisory fees. Knoll pension plan termination charges: Includes expenses incurred associated with the termination of the Knoll pension plan which was completed in the second quarter of fiscal year 2025.Debt extinguishment charges: Includes expenses associated with the extinguishment of debt. We excluded these items from our non-GAAP measures because they relate to a specific transaction and are not reflective of our ongoing financial performance. Tax related items:We excluded the income tax benefit/provision effect of the tax related items from our non-GAAP measures because they are not associated with the tax expense on our ongoing operating results.
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27NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAReconciliation of Adjusted Earnings per Share(UNAUDITED)Adjusted Earnings per Share - Diluted FY22 FY23 FY24 FY25 FY26 Q1 FY26 Q1 FY27Earnings per share (Loss) - diluted (0.37)$ 0.55$ 1.11$ (0.54)$ 1.32$ 0.29$ 0.38$ Add: Amortization of Knoll purchased intangibles 0.87 0.33 0.32 0.35 0.34 0.09 0.08 Add: Acquisition and integration charges 1.71 0.24 0.31 0.41 - - - Add: Restructuring charges - 0.45 0.42 0.22 0.20 0.01 0.10 Add: Impairment charges - 0.76 0.24 1.88 - - - Add: Knoll pension plan termination charges - - - 0.01 - - - Add: Special charges (0.01) - - - - - - Add: Debt extinguishment 0.18 - - - 0.11 0.11 - Add: CEO transition costs - - - - 0.04 - 0.02 Less: Gain on sale of dealer (0.03) - - - - - - Tax impact on adjustments (0.43) (0.48) (0.32) (0.38) (0.15) (0.05) (0.05) Adjusted earnings per share - diluted 1.92$ 1.85$ 2.08$ 1.95$ 1.86$ 0.45$ 0.53$ Weighted average shares outstanding (used for calculating adjusted earnings per share) - diluted 73,160,212 76,024,368 73,954,756 68,977,267 69,321,661 69,194,506 70,040,606 * Special charges include certain costs arising as a direct result of COVID-19. Current Quarter
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28NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAReconciliation of Net Earnings to Adjusted EBITDA($ MILLIONS); (UNAUDITED)FY22 FY23 FY24 FY25 FY26Net earnings (loss) attributable to MillerKnoll, Inc. (27.1)$ 42.1$ 82.3$ (36.9)$ 91.5$ Income tax expense 11.1 4.5 14.7 11.6 32.4Depreciation expense 112.0 115.3 117.5 102.6 110.3Amortization expense 78.6 39.8 37.6 37.9 38.0Interest income (1.6) (2.8) (6.1) (5.4) (4.1) Interest expense 37.8 74.0 76.2 76.7 69.9 EBITDA 210.8 272.9 322.2 186.5 338.0 Add: Acquisition and integration charges 124.5 18.0 19.1 28.2 - Add: Restructuring and special charges - 71.2 25.0 14.4 8.8 Add: Impairment charges - 20.7 16.8 130.0 - Add: Knoll pension termination charges - - - 0.6 - Add: Debt extinguishment 13.4 - - - 8.0 Add: CEO transition costs - - - - 2.6 Less: Gain on sale of dealer (2.0) - - - - Total adjustments 135.9 109.9 60.9 173.2 19.4 Adjusted EBITDA 346.7$ 382.8$ 383.1$ 359.7$ 357.4$ * Special charges include certain costs arising as a direct result of COVID-19.
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29NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAReconciliation of Free Cash Flow($ MILLIONS); (UNAUDITED)FY22 FY23 FY24 FY25 FY26Net Cash Provided by (Used in) Operating Activities (11.9)$ 162.9$ 352.3$ 209.3$ 199.9$ Capital expenditures (94.7) (83.3) (78.4) (107.6) (122.3) Free Cash Flow (106.6)$ 79.6$ 273.9$ 101.7$ 77.6$
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30NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAReconciliation of Adjusted Operating Expenses($ MILLIONS); (UNAUDITED)Adjusted Operating Expenses Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27Operating Expenses 314.6 323.7 308.0 344.2 333.5 Restructuring Charges 0.5 1.4 1.9 8.1 6.0 Amortization of Knoll purchased intangibles6.1 6.0 6.1 5.8 5.7 CEO Transition Costs - - - 2.6 1.7 Adj. Operating Expenses 308.0$ 316.3$ 300.0$ 327.7$ 320.1$ Adj. Operating Expenses (% of sales) 32.2% 33.1% 31.4% 32.6% 34.7%
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31NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAReconciliation of Adjusted Operating Earnings($ MILLIONS); (UNAUDITED)Adjusted Operating Earnings Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27Net Sales 955.7$ 955.2$ 926.6$ 1,004.2$ 923.4$ Operating Earnings (GAAP) 53.5 48.5 44.9 51.4 51.8 Operating Margin (% of sales) 5.6% 5.1% 4.8% 5.1% 5.6%Restructuring Charges 0.5 1.5 2.2 9.3 6.5 Amortization of Knoll purchased intangibles6.1 6.0 6.1 5.8 5.7 CEO Transition Costs - - - 2.6 1.7 Adj. Operating Earnings (non-GAAP) 60.1$ 56.0$ 53.2$ 69.1$ 65.7$ Adj. Operating Margin (% of sales) 6.3% 5.9% 5.7% 6.9% 7.1%
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32NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATA($ MILLIONS); (UNAUDITED)Q1 FY27Net earnings (loss) 98.0$ Income tax expense 32.4 Depreciation expense 109.8 Amortization expense 37.6 Interest expense 67.7 Other adjustments 44.3 Adjusted bank covenant EBITDA 389.8 Total debt, less cash, end of trailing period 1,071.4$ Net debt to adjusted bank covenant EBITDA ratio 2.75 Reconciliation of Net Earnings to Adjusted Bank Covenant EBITDA and Adjusted Bank Covenant EBITDA Ratio (provided on a trailing twelve month basis)
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33NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAReconciliation of Adjusted Gross Margin($ MILLIONS); (UNAUDITED)Adjusted Gross Margin Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27Net Sales 955.7$ 955.2$ 926.6$ 1,004.2$ 923.4$ Gross Margin (GAAP) 368.1 372.2 352.9 395.6 385.3 Gross Margin (% of sales) 38.5% 39.0% 38.1% 39.4% 41.7%Restructuring Charges - 0.1 0.3 1.2 0.5 Adj. Gross Margin (non-GAAP) 368.1$ 372.3$ 353.2$ 396.8$ 385.8$ Adj. Gross Margin (% of sales) 38.5% 39.0% 38.1% 39.5% 41.8%
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34NON-GAAP FINANCIAL MEASURES AND OTHER SUPPLEMENTAL DATAOrganic Sales Growth Organic Orders Growth($ MILLIONS); (UNAUDITED) ($ MILLIONS); (UNAUDITED)Q1 FY27 Q1 FY27Net Sales, as reported 923.4$ Orders, as reported 913.9$ % change from PY (3.4)% % change from PY 3.2%Currency translation effects (1)1.1 Currency translation effects (1)2.3 Net sales, organic 924.5$ Orders, organic 916.2$ Organic Growth (3.3)% Organic Growth 3.5%Q1 FY26 Q1 FY26Net Sales, as reported955.7$ Orders, as reported885.4$ (1)Currency translation effects represent the estimated net impact of translating current period sales using the average exchange rates applicable to the comparable prior year period.(1)Currency translation effects represent the estimated net impact of translating current period orders using the average exchange rates applicable to the comparable prior year period.