Leifheit AG

Investor Presentation • Nov 11, 2020

Investor Presentation 9M 2020

November 2020

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-todate, 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.

Leifheit makes top quality household products, designed in Germany

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

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

Linomatic 500 Deluxe 4.5 stars

Sterne	77%
Sterne	11%
Sterne	5%
Sterne	2%
Stern	6%

Leifheit is financially solid and pays good dividends to shareholders

Commitment to shareholders in € 0,00 0,50 1,00 1,50 Bonus/special dividend Dividend Dividend payments 1984 - 2019 1.50 1.00 0.50 0.00

Strong products and brands

Strong financial structure in € m

However, our 2018 and 2019 results were disappointing… can we change that?

Successful turn around in 2020: September YTD 2020 EBIT up +115% vs year before

0

20

40

60

80

100

120

New strategy transforms Leifheit into a growing business, up 28% in Q3

Group turnover development by quarters

in %

-20

-10

0

10

20

30

40

• After years of flat revenue now doubledigit growth in 2020
• Percentage growth vs year before accelerates from quarter to quarter in 2020

Double-digit growth in five consecutive months

Group turnover development by months

in %

-20

-10

0

10

20

30

40

• COVID-19 pandemic resulted in retail shutdowns in March and April
• Advertising campaigns drive strong growth

EBIT margin up by 360 basis points from 4.0% in 9M 2019 to 7.6% in 9M 2020

		9M 2019	9M 2020	∆
Group turnover	€ m	177.2	201.9	13.9 %
Gross margin	%	42.8	44.7	1.9 pps
Foreign currency result	€ m	0.3	-0.6	> -100 %
EBIT	€ m	7.1	15.4	> 100 %
EBIT margin	%	4.0	7.6	3.6 pps
Earnings before taxes (EBT)	€ m	6.1	14.6	> 100 %
Net result for the period	€ m	4.2	10.6	> 100 %
EPS	€	0.45	1.11	> 100 %

Negative cash flow mainly due to turnoverrelated increase in receivables

in € m	9M 2019	9M 2020	∆
Cash flow from operating activities	11.8	4.6	-7.2
Cash flow from investment activities	-4.1	-4.9	-0.8
Cash flow from financing activities	-10.5	-0.5	10.0
Change in cash and cash equivalents	-2.8	-0.9	1.9
Cash and cash equivalents at the end of reporting period	48.1	49.4	1.3
Free cash flow1	7.7	-0.3	-8.0

in € m	31/12/2019	30/09/2020	∆
Cash and cash equivalents at the end of reporting period	50.3	49.4	-0.9
Group liquidity	50.3	49.4	-0.9
Financial liabilities	-	-	-

• Decrease in Group liquidity mainly results from the strong rise in working capital; short-term trade receivables up by € 16.2 m to € 60.6 m and inventories increased by € 12.6 m to € 58.4 m on the reporting date
• At € 5.0 m investments above previous year (€ 4.3 m)

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

Negative cash flow in September 2020 YTD behind turnover growth (trade receivables) and increased inventories (prepare future growth and secure supplies during pandemic)

50,3 50,3 60,9 51,0 38,4 38,4 49,4 50,0 49,4 10.6 6.3 16.2 12.6 11.0 5.6 5.0 0,6 Cash and cash equivalents Net result for the period Depreciation and amortization Trade receivables Inventories Liabilities Others Investments Lease liabilities Cash and cash equivalents Group liquidity 31.12.2019 vs 30.09.2020 in € m Free Cashflow € -0.3 m 1

• Increase in trade receivables as a result of turnover growth (9M 2019: decrease € 0.4 m)
• No noteworthy effects from aging of receivables in connection with COVID-19
• Increase in inventories due to consumer advertising planned for the next months and to secure supply chain during the ongoing pandemic

30.09.2020

1 Others contains sales and income taxes in the amount of +€ 6.1 m

31.12.2019

Our purpose? Happy consumers!

We call our strategy "Scaling up success"

Create consumer demand and make brand stronger 1

1 Source: Annual reports 2019

Investor Presentation 9M 2020 November 2020 14

We tested massive advertising spend in several countries with strong results 1

Turnover development selected TV markets

Netherlands Belgium Switzerland Poland Romania +44% +27% +52% +23% +46%

Group turnover 9M 2020 in € m

Investor Presentation 9M 2020 November 2020 16

Encouraged by strong results in TV advertising test countries we took the appoach to our #1 market Germany in Q3 1

Turnover development Germany

Group turnover % change vs year before in Q3

+33%

Encouraged by strong advertising results on brand Leifheit, we scaled up this approach to brand Soehnle in Q3 1

• Campaign focuses on Soehnle Page Profi 300 digital kitchen scales, recently awarded a "very good" test result.
• Soehnle Page Profi is the most-popular range of kitchen scales in Germany.
• Target group-relevant and high-reach top print titles from September to December 2020: 8 million copies, 2.74 million target group contacts.

We are successfully expanding our distribution network in 2020 2

Permanent listings in

1,200

additional supermarkets in the DACH region.

While spending more on consumer advertising, we drive down all other cost 4

% of Group turnover	FY 2018	FY 2019	9M 2019	9M 2020	Change
Consumer marketing	0.7%	1.7%	1.4%	4.7%	✓ +3.3 pp
Other marketing	5.4%	4.6%	4.7%	3.8%	✓ -0.9 pp
R&D	2.3%	2.4%	2.4%	2.0%	✓ -0.4 pp
1 Logistics	11.0%	11.5%	11.2%	9.9%	✓ -1.3 pp
Administration	6.1%	6.4%	6.5%	5.8%	✓ -0.7 pp
Cost of turnover	56.4%	56.8%	57.2%	55.3%	✓ -1.9 pp
OPEX 2 adj. by Consumer marketing	94.2%	94.7%	94.9%	87.8%	✓ -7.1 pp
OPEX 2	94.9%	96.4%	96.3%	92.6%	✓ -3.7 pp

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

Full year earnings forecast significantly raised: 70 to 90 % EBIT growth vs FY 2019

	Actual 2019	Forecast 2020 before COVID-19	Forecast 2020 Jul 2020	Forecast 2020 Oct 2020
Group turnover	234.0 €m	approx. +8%	+7 to 9%	+11 to 13%
Turnover Household	182.0 €m	+8 to 9%	+8.5 to 10.5%	+12.5 to 14.5%
Turnover Wellbeing	19.8 €m	+10 to 11%	+11 to 13%	+21 to 26%
Turnover Private Label	32.2 €m	approx. +5%	slight decrease	slight decrease
Group EBIT	9.9 €m	9.5 to 10.0 €m	12 to 15 €m	17 to 19 €m
Free Cashflow	10.1 €m	6.5 to 7.5 €m	1 to 3 €m	3 to 5 €m
ROCE	8.2 %	7.5 to 8.5%	9 to 12 %	12 to 15 %

November 2020

Your questions please.

November 2020

Leifheit Group

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

Operating in more than 80 countries with 15 own branches

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

Turnaround in Germany through successful TV advertising campaigns

Group turnover by region

9M 2020

• Turnaround in Germany: 8.2% growth following large-scale TV advertising campaign in Q3.
• Central Europe with strong growth of 17.3%. The Netherlands and Switzerland remain most important markets for Leifheit in the region.
• Eastern Europe with double digit turnover increase of 13.1% due to increased consumer marketing investments. Particularly strong growth in Romania and Poland.

Long-term financial overview

		2015	2016	2017	2018	2019
Group turnover € m		231.8	237.1	236.8	234.2	234.0
Profitability
▪ Gross margin	%	46.7	47.5	46.4	43.6	43.1
▪ Cash flow from operating activities	€ m	20.8	21.8	7.2	10.2	15.9
▪ Free cash flow	€ m	14.1	14.3	1.5	3.7	10.1
▪ EBIT EBIT adjusted1 ▪	€ m € m	21.7 19.2	22.1 21.8	18.8 20.3	13.1 12.8	9.9 9.6
▪ EBIT margin	%	9.3	9.3	8.0	5.6	4.2
▪ EBT	€ m	20.2	20.6	17.7	11.9	8.5
▪ Net result for the period	€ m	14.3	14.5	12.9	8.4	5.8
ROCE2 ▪	-1 %	18.1	16.3	12.7	10.5	8.2

¹ Adjusted by foreign currency results

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

Long-term financial overview

		2015	2016	2017	2018	2019
Per share1
Net result for the period2	€	1.51	1.53	1.35	0.88	0.61
Free cash flow	€	1.48	1.51	0.16	0.39	1.06
Dividend	€	1.00	1.05	1.05	1.05	0.55
Special dividend	€	0.38	0.40	--	--	--
Investments	€ m	7.1	7.8	7.8	6.6	6.0
Depreciation	€ m	5.8	6.2	6.4	6.9	8.2
		31/12/15	31/12/16	31/12/17	31/12/18	31/12/19
Employees	No.	1,074	1,093	1,137	1,119	1,106
Balance sheet total2	€ m	237.9	239.4	224.9	221.8	214.6
Equity	€ m	106.7	104.6	98.5	101.8	96.2
Equity ratio	%	44.9	43.7	43.8	45.9	44.8
Liquidity	€ m	68.2	69.5	57.2	50.9	50.3

¹ Scrip issue in June 2017, 2013 – 2016 adjusted

2 Not including repurchased treasury shares

Experienced Management

Henner Rinsche CEO + CFO

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 Vice President Finance

Previous experience

• Responsible for Finance, Controlling, IT/Business processes and internal Sales services as of 01 April 2020
• 2012 2020 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 €	2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 2017: 3.8% 2013: 5.3% 2016: 5.1% 2012: 5.2%
1,50	Dividend for 2019: 0.55 €
1,00
0,50
0,00	4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 0 2 3 91 01 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 1 0 0 0 0 0 0 01 01 01 01 01 01 01 01 01 01 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
	Bonus/special dividend	Dividend

¹ Based on the particular closing price at year-end, 2019: proposal to Annual General Meeting

Soehnle awards (selection)

Body analysis scales Shape Sense Connect 100 + 200 Blood pressure monitors Systo Monitor 200 + 300 Luftreiniger AirFresh Clean 300 and Clean Connect 500

Leifheit – more than 60 years of passion for housework

• New Strategy "Scaling up Success"

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 Oxo	Rösle Fackelmann	WMF	Gefu Lurch		ADE	Bosch	Homedics	Laica	Tanita
Brabantia		Westmark	Emsa	Tefal		Sanitas	Withings		Terraillon	Beurer

Significant free float and international investors

Shareholder structure

• Joachim Loh, Haiger (GER), 10.31%
• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Leifheit AG Nassau (GER), treasury shares Aktien, 4.91%
• Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 10.44%
• 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 50.72%

2 Including shareholdings of the management board

Financial calendar and contact

Dates 2020 / 2021 Contact

16 - 18 Nov 2020 Presentation at German Equity Forum (online)

24 March 2021 Annual financial report 2020

11 May 2021 Quarterly statement for the period ending 31 March 2021

2 Jun 2021 Annual General Meeting

11 Aug 2021 Financial report for the first half-year endeing 30 June 2021

11 Nov 2021 Quarterly statement for the period ending 30 September 2021

Corporate Communications / Investor Relations

Phone: +49 2604 977-218

Email: ir@leifheit.com

www.leifheit-group.com

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau