Purple Revenue Growth Strategy

LO 5 Volume is shifting to the biggest addressable opportunity: mass premium and premium products U.S. mattress market share by price segment¹ Unit volume Retail revenues purple Premium 6% 7% 7% 8% 8% (>$2k) 24% Mass Premium 27% 25% 25% 29% 17% ($1k-$2k) 19% 20% 19% 22% 29% 30% 28% 31% Mass Market ($500-$1k) 41% 35% 32% 29% 36% 36% 30% 28% 29% 28% 27% Entry-level (<$500) 36% 38% 41% 37% 34% 18% 17% 16% 16% 14% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Source: ISPA Prices based on queen mattress 5

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