Leifheit AG

Investor Presentation • Aug 11, 2021

Investor & Analyst Meeting

11 August 2021

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 2021

Group turnover up 20% vs last year

Germany turnover up > 30% vs last year

Soehnle: first time with TV advertising. Turnover up > 20% vs last year

EBIT up 55% vs last year

Gross margin slightly down from 44.1% to 43.9%

Free cash flow soaring to € EUR 10 m

Good H1 2021 – but effects of COVID-19 pandemic continue to be noticeable

Good business performance in H1 2021

• Successful TV campaigns for Leifheit and Soehnle
• Fast growth in online retail compensates Covid-19 closures of brick & mortar retail

Nevertheless, effects of COVID-19 pandemic still clearly noticeable

• Ongoing shortage of raw materials and low availability of cargo space
• Significant rise in steel and plastic prices
• Tense situation in the sea fright sector
• Pandemic-related cost increases at Czech plant

Forecast 2021 unchanged: further turnover and EBIT increase despite COVID-19

• Group turnover increase of at least 5%
• Household up at least 6%, Wellbeing up at least 7%, Private Label slightly above level of 2020
• EBIT between € 20 m and € 24 m
• Free cash flow between € 10 m and € 14 m

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 4.6 stars

5 Sterne	76%
4 Sterne	13%
3 Sterne	4%
2 Sterne	2%
1 Stern	4%

5 Sterne	77%
4 Sterne	14%
3 Sterne	4%
2 Sterne	2%
1 Stern	3%

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

Double digit growth in FY 2020 and first half 2021

Group turnover development

in %

Analyst meeting August 2021

EBIT and Earnings per share significantly up vs year before, Gross margin slightly down yoy

• Significant price increases for production materials and incoming freight affected gross margin.

Raw material prices soared – no end of price rally in sight

Seafreight: +~300%

vs. prev. year

ABS plastics: +80% vs. prev. year

Aluminium (LME): +54% vs. prev. year

Stainless Steel: +70% vs. prev. year

Packaging: +152% (Paper and carton) vs. prev. year

Glas plates: +33% vs. Q1 2021

Measures to improve working capital show effect, increased stock of top sellers to secure supply chain

in € m	H1 2020	H1 2021	∆
Cash flow from operating activities	-0.2	13.2	13.4
Cash flow from investment activities	-2.4	-2.7	-0,3
Cash flow from financing activities	-0.4	-10.3	-9.9
Free cash flow1	-2.5	10.4	12.9
in € m	31/12/2020	30/06/2021	∆
Cash and cash equivalents at the end of reporting period	38.8	39.0	0.2
Financial liabilities	-	-	-

• Improved free cash flow mainly due to increase in cash flow from operating activities by
  • rise in net result for the period and
  • significantly lower rise in working capital compared to the previous-year period (H1 2020: € 14.7 m, H2 2021: € 1.0 m)
• The € 0.4 m rise in trade receivables and contractual assets and the € 4.7 m increase in inventories to safeguard delivery ability in view of current raw material, chip and freight space shortages were largely offset by the € 4.1 m increase in trade payables and other liabilities.
• Cash flow from financing activities includes dividend payout of € 10 m. In 2020 dividend was paid out in October.

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.

Dividend payout has been financed from Free cash flow in first half of 2021

Group liquidity

31.12.2020 vs. 30.06.2021 in € m

• No noteworthy effects from aging of receivables in connection with COVID-19
• Increase in inventories due planned growth and to secure supply chain during the ongoing pandemic
• Inventories will stay on high level until end of 2021

Our purpose? Happy consumers!

We call our strategy "Scaling up success"

Create consumer demand and make brands stronger 1

Peer group comparison Marketing spend and EBIT

in % of turnover

EBIT margin

¹ Source: Annual reports 2020

In 2020 we tested massive advertising spend in several countries with strong results 1

Turnover development selected TV markets

Group turnover 2020 in € m

In H1 2021 we again achieved strong results in countries with massive TV spending 1

Turnover development selected TV markets

Group turnover H1 2021 in € m

Encouraged by strong results in TV advertising test countries we took the approach to our #1 market Germany H2/2020 & H1/2021

1

New strategy led to positive turnaround in Germany away from the recent downward trend 1

Group turnover development in Germany

in %

-14

-4

6

16

26

36

46

¹ Encouraged by strong advertising results on brand Leifheit, we scaled up this approach to Soehnle

-18

-13

-8

-3

2

7

12

17

22

27

Turnover development Soehnle scales product category

• Print campaign in Q3 2020 focused on Soehnle Page Profi 300 digital kitchen scales, which was awarded with "very

achieved massive market share increases in Germany in H1 2021.

in %

good" test result.

scale, also rated

"very good".

We are successfully expanding our distribution network 2

Permanent listings in

1,500

additional supermarkets in the DACH region and Italy

International expansion: German heritage products are ranked # 1 for consumers in terms of positive image 2

Rank	Country	Index
1	Deutschland	100
2	Schweiz +	98
3	Europäische Union	92
4	Großbritannien	91
5	Schweden	90
6	+ Kanada	85
7	Italien	84
8	apan	81
8	Frankreich	81
00	第三 USA	81
11	Finnland	77
11	Norwegen	77
13	Niederlande	16
14	Australien	75
15	Neuseeland	73
15	Dänemark 1 F	73
20	Spanien 1 F	64
30	Argentinien 1 F	42
42	Indien	36
10	China	00

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 need to compensate growing raw material and cargo cost with price increases in order to improve gross margins again 4

% of Group turnover	FY 2018	FY 2019	FY 2020	H1 2020	H1 2021	Change
Consumer marketing	0.7%	1.7%	5.5%	3.8%	5.6%	✓ +1.8 pp
Other marketing	5.4%	4.6%	3.6%	3.5%	2.8%	✓ -0.8 pp
R&D	2.3%	2.4%	2.1%	2.0%	1.8%	✓ -0.2 pp
Logistics1	11.0%	11.5%	10.5%	10.0%	9.5%	✓ -0.5 pp
Administration	6.1%	6.4%	5.4%	6.5%	6.0%	✓ -0.5 pp
Cost of turnover	56.4%	56.8%	55.0%	55.9%	56.1%	+0.2 pp
OPEX2 adj. by Consumer marketing	94.2%	94.7%	87.7%	89.9%	86.6%	✓ -3.3 pp
OPEX2	94.9%	96.4%	93.2%	93.7%	92.1%	✓ -1.6 pp

¹ Not including inbound cost ² Without other operating income/expenses

Analyst meeting August 2021

If growth strategy enabled 10% sales CAGR, then there would be a temporary sales decline in H2 2021 against the backdrop of a Corona special boost in H2 2020. In H2 2022 sales would return to 10% CAGR due to successful growth strategy.

Turnover development July - December

Leifheit Group in € m - only for the purpose of a simplified illustration

Forecast 2021 unchanged: Turnover and earnings growth

	Forecast 2021
Group turnover	at least +5%
Turnover Household	at least +6%
Turnover Wellbeing	at least +7%
Turnover Private Label	Slight increase
Group EBIT	20 – 24 €m
Free Cashflow	10 – 14 €m

Strong growth in Household and Wellbeing segments following large-scale advertising

105.8 126.3 11.4 13.8 13.2 16.2 50 100 150 200 Private Label Wellbeing Household 130.4 6M 2020 vs 6M 2021 in € m 156.3

Group turnover by segment

6M 2020 6M 2021

Group turnover by segment 6M 2021

• Turnover in Household segment up by 19.4%, strong growth in nearly all product categories due to successful TV campaigns and consumers' increased need for hygiene.
• Wellbeing segment increased by 20.5%, mostly due to growth of Soehnle scales and Air purifiers.
• Private Label increased by 23.2% compared to H1 2020 through pipeline filling effects due to distribution expansion and more Covid-19 retail closures in France in the previous year's period.

0

Strong turnover growth in Germany through successful TV advertising campaigns

Group turnover by region

6M 2020 vs 6M 2021 in € m

Group turnover by region

6M 2021

• Growth trend in Germany: 30.5% growth following TV campaigns for Leifheit products as well as for Soehnle brand.
• Central Europe with strong growth of 16.5%. In particular, France and Italy grew significantly due to increased marketing activities and its announcement.
• Eastern Europe with turnover increase of 7.0%. In Czech Republic, the strongest market in this region in terms of turnover, a doubledigit increase was achieved mainly due to increased marketing activities.

Leifheit Group structure

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

Fortunately, hypers & discounters stayed open during Covid-19 retail shut-downs

Blue Chip client base Distribution channels

Turnover 2020 in % (previous year's figures)

Number of employees at a stable level

Long-term financial overview

		2016	2017	2018	2019	2020
Group turnover	€ m	237.1	236.8	234.2	234.0	271.6
Profitability
▪ Gross margin	%	47.5	46.4	43.6	43.1	45.0
▪ Cash flow
from operating activities	€ m	21.8	7.2	10.2	15.9	4.0
▪ Free cash flow	€ m	14.3	1.5	3.7	10.1	-5.5
▪ EBIT	€ m	22.1	18.8	13.1	9.9	18.8
EBIT adjusted1 ▪	€ m	21.8	20.3	12.8	9.6	19.7
▪ EBIT margin	%	9.3	8.0	5.6	4.2	6.9
▪ EBT	€ m	20.6	17.7	11.9	8.5	17.7
▪ Net result for the period	€ m	14.5	12.8	8.4	5.8	12.5
ROCE2 ▪	-1 %	16.3	12.7	10.5	8.2	14.1

¹ Adjusted by foreign currency results

² Definition of ROCE changed in 2019, ROCE 2018 adjusted for comparability reasons

Long-term financial overview

		2016	2017	2018	2019	2020
Per share1
Net result for the period, EPS2	€	1.53	1.35	0.88	0.61	1.32
Free cash flow	€	1.51	0.16	0.39	1.06	-0.57
Dividend	€	1.05	1.05	1.05	0.55	1.05
Special dividend	€	0.40	--	--	--	--
Investments	€ m	7.8	7.8	6.6	6.0	9.6
Depreciation	€ m	6.2	6.4	6.9	8.2	8.5
		31/12/16	31/12/17	31/12/18	31/12/19	31/12/20
Employees	No.	1,093	1,137	1,119	1,106	1,089
Balance sheet total2	€ m	239.4	224.9	221.8	214.6	230.0
Equity	€ m	104.6	98.5	101.8	96.2	100.4
Equity ratio	%	43.7	43.8	45.9	44.8	43.7
Liquidity	€ m	69.5	57.2	50.9	50.3	38.8

¹ Scrip issue in June 2017, 2013 – 2016 adjusted

²²Not including repurchased treasury shares

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 €																				2020: 2.4% 2019: 2.3% 2018: 5.9% 2017: 3.8%					2016: 5.1% 2015: 5.6% 2014: 3.9% 2013: 5.3%
1,50
Dividend for 2020: 1.05 €
1,00
0,50
0,00	4	5	6	7	8	9	0		2	3	4	5	6	7	8	9	0		2	3	4	5	6	7	8	9	0	1	2	3	4	5	6	7	8	9	0
	8 9 1	8 9 1	8 9 1	8 9 1	8 9 1	8 9 1	9 9 1	91 9 1	9 9 1	9 9 1	9 9 1	9 9 1	9 9 1	9 9 1	9 9 1	9 9 1	0 0 2	01 0 2	0 0 2	0 0 2	0 0 2	0 0 2	0 0 2	0 0 2	0 0 2	0 0 2	01 2	01 2	01 2	01 2	01 2	01 2	01 2	01 2	01 2	01 2	2 0 2
															Bonus/special dividend								Dividend

¹ Based on the particular closing price at year-end

Soehnle awards (selection)

Kitchen Scales Page Profi + Page Profi 300

Personal Scales Style Sense Compact 300 + Safe 300

Air Humidifier Airfresh Hygro 500

Body analysis scales Shape Sense Connect 100 + 200

Blood pressure monitors Systo Monitor 200 + 300

Air Purifier AirFresh Clean 300 and Clean Connect 500

Leifheit – more than 60 years of passion for housework

European competitors by category

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

Significant free float and international investors

Shareholder structure

¹ Definition of German stock exchange for indices

2 Including shareholdings of the management board

• Joachim Loh, Haiger (GER), 10.31%
• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Leifheit AG Nassau (GER), treasury shares, 4.87%
• 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%
• The Capital Group Companies, Inc., Los Angeles (USA), 5.02%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52%
• Voting rights under notification threshold: 40.76%

Our ESG Principles: long-lasting products as essential aspect of sustainability

Analyst meeting

Sustainability means for us responsibility towards environment and people, corporate integrity and finally: long-lasting and high-quality products.

Environment

• Providing durable, longlasting and high-quality products

• European production and logistics footprint with close proximity to customers
• Compliance with applicable regulations, guidelines and laws in manufacturing (such as WEEE, RoHS, REACH, PAH, Ecodesign Directive…)
• Strict environmental standards in our supply chain laid down in Code of Conduct for suppliers

Social

• Fun, friendly, fast and fearless corporate culture
• HR strategy centers on employee attractiveness
• Safety and health of our workforce
• Welcome diversity and offer equal opportunities
• Fair and competitive remuneration, training and education
• Strict social standards in our supply chain laid down in Code of Conduct for suppliers
• Social commitment at our locations

Governance

• Focus on responsible Corporate Management and Compliance

• High transparency to stakeholders with quarterly reporting, conference calls and regular news updates
• Compliance Management System (CMS) including guidelines and measures to ensure ethical behavior in line with regulations
• Combating corruption and bribery as integral part of CMS
• Protection of personal data in line with the high standards of the German data protection law DSGVO

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

Sep 2020 Deutschland Test / Focus Money

1 st place Home appliances 100.0 points

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 Most Sought-after Products & Services

Jan 2020 IMWF Institut / FAZ-Institut

2 nd place Household items 99.5 points

Study analyses social listening data in 438 million online sources for over 20,000 companies. Relevant criteria include quality, customer satisfaction and value for money.

st place 5 th place

Household items 100.0 / 86.2 points

1

Study looks at customer statements for 17,000 brands from 280 industries regarding reliability, quality, trust and recommendations in 438 million online sources and thus makes a comprehensive assessment of customers' trust in companies.

Germany's Best Customer Hotline

Aug 2020 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.

Financial calendar and contact

Dates 2021	Contact
11 Nov 2021 Quarterly statement for the period	Corporate Communications / Investor Relations
ending 30 September 2021 11 Nov 2021	Phone: +49 2604 977-218
Investor Conference Call	Email: ir@leifheit.com
22 - 24 Nov 2021 German Equity Forum	www.leifheit-group.com

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau