Leifheit AG

Investor Presentation • Aug 9, 2022

Disclaimer

This presentation contains forward-looking statements which are based on the management's current estimates with regard to future developments. Such statements are subject to risks and uncertainties which are beyond Leifheit's ability to control or estimate precisely, such as statements on the future market environment and economic conditions, the behavior of other market participants and government measures.

If one of these uncertain or unforeseeable factors occurs or the assumptions on which these statements are based prove inaccurate, actual results could differ materially from the results cited explicitly or contained implicitly in these statements. Leifheit neither intends to, nor does it accept any specific obligation to update forward-looking statements to reflect events or developments after the date of this presentation.

Leifheit AG shall not assume any warranty for the information provided in this presentation being up-to-date, accurate, complete or of good quality or for the suitability of the information for specific purposes.

Any liability of Leifheit AG for loss caused by the use or non-use of the information provided or by wrong or incomplete information is excluded.

Executive Summary H1 2022

Leifheit AG has a strong vision: to become the Procter & Gamble of consumer durables

"Scaling Up Success" strategy with focus on consumer marketing and superior products

Vision and strategy deliver great results: 2019-2021 CAGR turnover +11% and EBIT +43%

However, 2022 is still an exceptional year with Russia-Ukraine war and pandemic deteriorating both consumer demand and operational cost

H1 2022 hence with 12.5% turnover decline vs record high H1 2021, but the 2nd best turnover in a first half-year and in a 2nd quarter of the last 15 years on comparable basis

H1 2022 with positive EBIT, but burdened by significant rise in material and energy prices

Leifheit makes top quality household products, designed in Germany

Profi Floor Wiper 4.7 stars

5 Sterne	84%
4 Sterne	9%
3 Sterne	3%
2 Sterne	1%
1 Stern	2%

CLEAN TWIST Disc Mop Ergo 4.6 stars

5 Sterne	78%
4 Sterne	14%
3 Sterne	4%
2 Sterne	2%
1 Stern	2%

5 Sterne	779
4 Sterne	140
3 Sterne	40
2 Sterne	20
1 Stern	30

Linomatic 500 Deluxe 4.5 stars

5 Sterne	77%
4 Sterne	11%
3 Sterne	5%
2 Sterne	2%
1 Stern	6%

Leifheit is financially solid and pays good dividends to shareholders

Strong financial structure in m€

Strong long-term stock performance

The strategy works: 2019 to 2021 shows CAGRs of +11% on turnover and +43% on EBIT

Scaling-Up Success, i.e. heavy TV ad spend, was tested before Corona in the Netherlands with remarkable results

Turnover development Netherlands

-15

-5

5

15

25

35

45

H1 + Q2 2022 saw the 2nd highest turnover in a first half-year and in a second quarter in the last 15 years (on comparable basis)

• Group turnover in H1 2022 +4.5% vs. H1 2020 and +12% vs. H1 in precoronavirus year 2019.
• Continuing high level of turnover in spite of difficult market conditions demonstrates the lasting effects of our expanded marketing efforts.

Macroeconomic environment is impacting consumer demand

GfK consumer climate index

August 2022, Germany

• Consumer climate reaches historic low
• Trading-down effect
• High level of inventories in the retail

HDE consumption barometer

August 2022, Germany

Source: HDE Handelsverband Deutschland

Procurement prices soared – no end of price rally in sight!

Source: MBI Martin Brückner Source: Finanzen.net

Gas price development

in €

in €

Positive EBIT despite challenging market prices in raw materials, energy and freight

		6M 2021	6M 2022	∆
Group turnover	m€	155.8	136.3	-12.5%
Gross margin	%	43.7	38.6	-5.1 pps
Foreign currency result	m€	0.5	1.4	>100.0%
EBIT	m€	13.6	2.1	-84.3%
EBIT margin	%	8.7	1.6	-7.1 pps
Earnings before taxes (EBT)	m€	13.3	1.7	-87.0%
Net result for the period	m€	9.5	1.3	-86.6%
EPS	€	1.00	0.13	-87.0%

• EBIT down by €11.5 million mainly due to the lack of contribution margins from the decline in turnover and the drastic increase in material and energy prices
• EBIT margin decreased to 1.6% in the reporting period (H1 2021: 8.7%).

Group earnings development

H1 2018 – H1 2022 in m€

Measures to safeguard the ability to deliver in the current crisis situation led to an increase in working capital

in m€	6M 2021	6M 2022	∆
Cash flow from operating activities	13.2	-7.9	-21.1
Cash flow from investment activities	-2.7	-2.6	0.1
Cash flow from financing activities	-10.3	-10.3	-
Free cash flow1	10.4	-10.5	-20.9
in m€	30/06/2021	30/06/2022	∆
Cash and cash equivalents at the end of reporting period	39.0	17.4	-21.6
Financial liabilities	-	-	-

• Free cash flow down to m€ -10.5 in the first half-year 2022 (H1 2021: m€ 10.4).
• Cash flow from investment activities include projects from the previous year that had not been completed at our Czech plant, which was not ready for operation until the first half of 2022 due to a lack of electronic components.
• The cash outflow from financing activities amounted to m€ 10.3 and mainly included the dividend payment of m€ 10.0.

¹Cash flow from operating activities and from investment activities, adjusted for incoming and outgoing payments in financial assets and, if existing, from acquisition and divestiture of business divisions.

Measures to safeguard the ability to deliver in the current crisis situation led to an increase in working capital

Group liquidity

• Working capital up by m€ 14.0
• Seasonal increase in trade receivables of m€ 1.4
• Increase of m€ 3.2 in inventories to safeguard our ability to deliver in view of supply chain bottlenecks and impending gas shortages
• Decrease in trade payables and other liabilities of m€ 9.7
• Dividends payment end of May

30.06.2022

31.12.2021

Our purpose? Happy consumers!

We call our strategy "Scaling up success"

• Invest in pre-tested and scalable high ROI

if supported by pre-tested advertising

• Launch new products only if margin > average and

consumer advertising on profitable best sellers

retailers and e-tailers

co-advertising

• Focus on own "made in Europe" profitable

• Leverage stronger brand to attract additional

• Ensure good sell-out in new retail partners with

total but not their % profit

• Negotiate win-win with retailers, growing their

• Take pricing and charge for logistics complexities

Investor Presentation August 2022 Reduce all cost except consumer advertising • Reduce SKUs dramatically • Strict R&D discipline • Create fun, fast, friendly & fearless culture • Growing revenues leverages current structure 4

Create consumer demand

1

2

3

Increase national and international distribution

Improve gross margins

products

Create consumer demand and make brands stronger 1

¹ Source: Annual reports 2021

Our massive investments in TV advertising have turned Leifheit & Soehnle into winning brands 1

3 31 37 0 5 10 15 20 25 30 35 40 2019 2020 2021 Gross spending TV advertising TV advertising works! 202 240 256 180 200 220 240 260 2019 2020 2021 Turnover Household & Wellbeing 9.9 18.8 20.1 0 0 0 0 0 2019 2020 2021 Group EBIT Leifheit & Soehnle Gross spending for advertising in m€ Leifheit & Soehnle Turnover development in m€ Group EBIT in m€

"Electricity Savers" campaign encourages consumers to switch to power-free laundry drying 1

• Current market situation provides the chance to further promote our energy-saving, durable products.
• In face of rising energy prices, many households are currently looking for ways to reduce their energy consumption and, with it, their electricity costs.
• Switching from electronic dryers to Leifheit Pegasus and Linomatic dryers saves electricity and money, but also reduces CO² emissions by around 150 kg compared to an electric dryer.

New addition to the kitchen category: Harmonic insulating jug 1

• Harmonic combines high quality with modern design and keeps drinks hot for up to 24 hours at 65°C.
• A comparative test of various insulating jugs by ipi Institut für Produkt- und Marktforschung recently singled it out as "by far the best at preserving heat".
• Coffee, for example, can be brewed and kept hot in large quantities – a genuine and sustainable alternative to the widespread use of capsule or pod machines, and one that also saves on packaging waste.

Further enhancements of successful efficient cleaning appliances range accompanied by intensive marketing efforts 1

• New Regulus Aqua PowerVac Pro, which vacuums, mops and dries all in one, can reach into every corner thanks to its new corner glider with Micro-Duo wipe cover.
• New Clean Tenso Power steam cleaner provides hygienic cleaning without chemical products while also saving water. To underline the Clean Tenso Power's high quality and durability, it is supplied with an extended warranty period.

We are successfully expanding our distribution network 2

International expansion: German heritage products are ranked # 1 for consumers in terms of positive image 3

Rank	Country	Index
1	Deutschland	100
2	Schweiz +	98
3	Europäische Union	92
র্বা	Großbritannien	91
5	Schweden	90
б	+ Kanada	85
7	Italien	84
8	Japan	81
8	Frankreich	81
8	到三 USA	81
11	Finnland	77
11	Norwegen	77
13	Niederlande	76
14	Australien	75
15	Neuseeland	73
15	Dänemark 1 F	73
20	Spanien 1 I	64
30	Argentinien 4 I	42
42	Indien ర్త	36
49	China	28

Source: Statista Made-In-Country-Index 2017

• Germany leads the Made-in-Country-Index
• The global ranking according to the Made-In-Country-Index shows how positively products "Made in ..." from the respective country are perceived worldwide.

We create a fun, fast, friendly and fearless winning culture 4

26% increase in turnover per employee FY 2021 vs. FY 2019 4

Key Strategic Initiatives

We face the challenging environment 4

Continuous work on our program to reduce complexity, further increase efficiency and reduce costs:

• Streamlining portfolio and substantial SKU reduction
• Projects to reduce purchasing and logistic costs by optimizing synergies in the Group and further improving our D2C capabilities
• Lean manufacturing initiatives and ratio projects to improve efficiency of our production sites
• In view of the persistent bottlenecks in the procurement markets and the impending gas shortage: ensuring ability to deliver through forward-looking inventory management and flexible production
• Building up our strong European footprint to reduce dependencies from Asia and from the turmoil on sea freight markets
• Continuous negotiation with our partners on the purchasing and sales side, strong focus on improving Cashflow by negotiating payment terms
• React flexibly to changes in capacity utilization in production and logistics by reducing remaining vacation time and credits on working time accounts and by reducing the number of temporary workers that we use to cope with peak order times
• Reducing structural cost wherever possible leaving employees will be replaced only as an exception
• Cost savings by digitalisation, meeting efficiency, travel expenses etc.

Forecast 2022: Turnover and earnings forecast adjusted following reassessment at the half-year mark

	Forecast 2022
Group turnover	Decrease in the single-digit percentage range
Turnover Household	Decrease in the upper single-digit percentage range
Turnover Wellbeing	Decrease in the clear double-digit percentage range
Turnover Private Label	Slightly below the previous year
Group EBIT	In the lower single-digit million Euro range
Free Cashflow	Below previous year

Household segment below prior-year turnover, but at a high level, due to continued large-scale advertising

Group turnover by segment

• Turnover in Household segment decreased by -10.0% year-onyear to m€ 113.4, this is mainly due to a change in consumer behavior following the removal of contact restrictions.
• Wellbeing segment declined by -40.0%. In the first half of the previous year, strong growth in Soehnle scales and increased demand for Soehnle air purifiers in view of the pandemic led to a significant sales increase in this segment.
• Private Label segment generated turnover of m€ 14.6, thus 9.2% below the previous year's figure (6M 2021: m€ 16.1).

Successful TV advertising campaigns are paying off, but Russia-Ukraine war and effects of COVID-19 weigh on private consumption

• Germany: Sales declined compared to previous year, but demand for the products advertised on TV continues to make an aboveaverage contribution to sales.
• Central Europe: Higher consumer prices and consumer uncertainty dampen consumer sentiment. In particular, in France, Belgium and Austria sales declined compared to the same period of the previous year due to lower promotional volumes.
• Eastern Europe: Strong double-digit turnover growth in the Baltic States and Slovakia. By contrast, sales in important markets Czech Republic and Poland declined.

Leifheit Group structure

Our European production footprint ensured reliable supply to customers in spite of COVID-19 challenges in the supply chain

Distribution in all relevant distribution channels

Top 10 Customers account for 50% of Leifheit's turnover Blue Chip client base Distribution channels

We were able to react flexibly to the changed capacity utilization in production and logistics by reducing remaining vacation time and credits on working time accounts and by cutback in the numbers of temporary workers

Long-term financial overview

		2017	2018	2019	2020	2021
Group turnover	m€	236.8	234.2	234.0	271.6	288.3
Profitability
▪ Gross margin	%	46.4	43.6	43.1	45.0	42.3
▪ Cash flow
from operating activities	m€	7.2	10.2	15.9	4.0	16.4
▪ Free cash flow	m€	1.5	3.7	10.1	-5.5	9.6
▪ EBIT	m€	18.8	13.1	9.9	18.8	20.1
▪ EBIT margin	%	8.0	5.6	4.2	6.9	7.0
▪ EBT	m€	17.7	11.9	8.5	17.7	19.3
▪ Net result for the period	m€	12.8	8.4	5.8	12.5	14.2
ROCE1 ▪	%	12.7	10.5	8.2	14.1	13.8

-1

¹ Definition of ROCE changed in 2019, ROCE 2018 adjusted for comparability reasons

Long-term financial overview

T	I	T

		2017	2018	2019	2020	2021
Per share
Net result for the period, EPS2	€	1.35	0.88	0.61	1.32	1.49
Free cash flow	€	0.16	0.39	1.06	-0.57	1.00
Dividend	€	1.05	1.05	0.55	1.05	1.052
Special dividend	€	--	--	--	--	--
Investments	m€	7.8	6.6	6.0	9.6	7.3
Depreciation	m€	6.4	6.9	8.2	8.5	7.8
		31/12/17	31/12/18	31/12/19	31/12/20	31/12/2021
Employees	No.	1,137	1,119	1,106	1,098	1,080
Balance sheet total1	m€	224.9	221.8	214.6	230.0	238.8
Equity	m€	98.5	101.8	96.2	100.4	111.3
Equity ratio	%	43.8	45.9	44.8	43.7	46.6
Liquidity	m€	57.2	50.9	50.3	38.8	38.1

¹ Not including repurchased treasury shares

² Dividend proposal

Experienced Management

Henner Rinsche CEO

Previous experience

• President Europe at SodaStream
• Various leading positions at Procter & Gamble, PepsiCo, Danone and Henkel

Core competencies

• General management and consumer goods marketing

Igor Iraeta Munduate COO

Previous experience

• Many years of experience as CTO at Igus GmbH and Stoba Präzisionstechnik
• Various technical management positions at Robert Bosch GmbH

Core competencies

• Digitalization, IoT, Industry 4.0, implementation of lean production systems, agile "Scrum" methods

Marco Keul CFO

Previous experience

• Resp. for Controlling, IT/Business processes and internal sales services as Vice president finance at Leifheit AG
• Years of experience as Head of Controlling at Leifheit AG

Core competencies

• IT, Finance & Controlling

Committed to shareholder returns

Long-term dividend development	Dividend yield 1
Dividend per share / in €	2021: 2.9% 2020: 2.4% 2019: 2.3% 2018: 5.9%	2017: 3.8% 2016: 5.1% 2015: 5.6% 2014: 3.9%

¹ Based on the particular closing price at year-end

Soehnle awards (selection)

Body analysis scales Shape Sense Connect 100 + 200

Blood pressure monitors AirFresh Clean 400 Systo Monitor 200 + 300

Leifheit – more than 60 years of passion for housework

Success

European competitors by category

Cleaning					Laundry care
Spontex Tonkita Swiffer		Rival		Vileda Wenko	Gimi	Brabantia Juwel	Artweger Stewi
Kärcher		Vileda		Metaltex		Rörets	Blome
Kitchen goods				Wellbeing
	Tescoma	WMF	Gefu	Bosch		Laica	Tanita
Zyliss	Rösle Oxo	Fackelmann	Lurch	ADE Sanitas		Homedics	Beurer
Brabantia	Westmark	Emsa	Tefal		Withings		Terraillon

Significant free float and international investors

¹ Definition of German stock exchange for indices

2 Including shareholdings of the management board

• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Ruthild Loh, Haiger (GER), 8.26%
• Leifheit AG Nassau (GER), treasury shares, 4.85%
• Employee shares subject to a lock-up period 0.06%
• Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 15.42%
• Teslin Capital Management BV/Gerlin NV, Maarsbergen (NL), 5.05%
• MainFirst SICAV, Senningerberg (LUX), 5.02%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52%
• Voting rights under notification threshold 42.82%

Financial calendar and contact

Dates 2022 Contact

08 Nov 2022 Quarterly statement for the period ending 30 September 2022

20 Sep 2022 Berenberg and Goldman Sachs Eleventh German Corporate Conference, München

Corporate Communications / Investor Relations
Phone:	+49 2604 977-218
Email:	ir@leifheit.com

www.leifheit-group.com

Leifheit is frequently top company in home appliances and household goods categories

Most Valuable Company

July 2021 Deutschland Test / Focus Money

1 st place Home appliances 100.0 points awarded 3rd time in a row

Study examines what companies do for their employees and society. Among other things, the sustainability reports of the largest German companies were evaluated according to the GRI standard.

Germany's fairest companies Jan 2022 IMWF Institut / FAZ-Institut

3 rd place Household items 90.3 points

Study analyses social listening data and identified 7.4 million mentions for over 17,000 companies. Relevant criteria include product and service, customer satisfaction and value for money, employer fairness and sustainability

Highest Level of Trust 2021

Oct 2021 Deutschland Test / Focus Money

1 st place Household items 100.0 points

Study shows which companies have a high level of trust by assigning and identifying 3.7 million mentions of about 21,000 brands in the investigation period September 2020 to August 2021.

Germany's Best Customer Hotline 2021

July 2021 IMWF Institut / FAZ-Institut

1 st place Home appliances 100.0 points

Study analyses social listening data for over 20,000 companies in the categories customer service and satisfaction, hotline, price and service. 438 million online outlets serve as a source.

Our ESG Principles

Read more at our sustainability report 2021

www.leifheit-group.com/en/investorrelations/reports-and-presentations/

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau