Leifheit AG

Investor Presentation • Mar 25, 2020

Investor and Analyst Conference Call

25 March 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.

Welcome to the conference call

Henner Rinsche CEO

• CEO of Leifheit AG since 01 June 2019
• Will take over CFO function in personal union effective from 01 April 2020

Ivo Huhmann CFO

• Will leave the company at the end of his contract 31 March 2020

Marco Keul Vice President Finance

• Will be responsible for Finance, Controlling, IT/Business processes and internal Sales services effective from 01 April 2020
• Previously head of Controlling of Leifheit AG since 2012

Executive summary

• Good start in the 2020 financial year, particularly with the Household segment.
• 2019 TV test market results and January till mid March 2020 global results confirm effectiveness of new strategy (i.e. growing sales of profitable blockbusters with successfully pre-tested TV advertising campaigns).
• Since March 2020 Covid-19 crisis damages both demand and supply.
• Supply interruptions e.g. because products from China and parts from Italy more difficult to source, trucks stuck at borders, lack of truck drivers, more strict hygiene standards in production/logistic sites etc.
• Demand interruptions because our non-food brick & mortar retailers such as DIY and electric chains have their stores closed. Reduced retail footprint. Consumers have less places to buy our products.
• Consumers switch to online retailers, but these now focus their limited warehouse capacity on FMCG products.
• Forecast for 2020 financial year was made before possible effects of the corona crisis. Considering the dynamic developments of the corona pandemic, we are currently unable to estimate its impact on Leifheit's business development.

Agenda

• Introduction to Leifheit
• Key Strategic Initiatives
• Financial Figures 2019
• Forecast Financial Year 2020
• Annex

Introduction to Leifheit

Introduction to Leifheit

Solid base to build on

Strong products and brands

Strong financial structure

Strong long-term stock performance above SDAX level

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Introduction to Leifheit

Leifheit Group

Introduction to Leifheit

Investor and Analyst Meeting Mar 2020 9

Present in leading distribution channels

Introduction to Leifheit

Operating in more than 80 countries with 15 own branches

Introduction to Leifheit

Urgent need for change

Our purpose? Happy consumers!

Increased Marketing Investments in Eastern Europe led to significant Growth Rates

1 Growth rate 2018 adjusted by contract production at Czech production facility expired in 2017

CEO's strategic review

New management identified strategy to address growth themes

Create consumer demand and make brand stronger 1

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¹ Creating and pre-testing effective ads

² Increase distribution

Turnover development Italy

Household and Wellbeing in € m

Improve gross margin 3

Focus on profitable Products Win-win retail negos Make in Europe Buy in Asia Average contribution margin ¹ ~42% ~34%

1 Household and Wellbeing segments

Boost profitability rockets

	Product A	Product B	Product C	Product D…
Contribution margin	medium	medium	medium	…
Level of distribution	medium	medium	medium	…
Quality and consumer satisfaction				…
	Boost consumer marketing

High consumer satisfaction with Leifheit top products 3

Profi Floor Wiper 4.6 stars

Linomatic 500 Deluxe 4.4 stars

★★★★☆ 4,5 von 5
2.515 Sternebewertungen

5 Sterne	75%
4 Sterne	13%
3 Sterne	5%
2 Sterne	2%
1 Stern	4%

5 Sterne	72%
4 Sterne	13%
3 Sterne	5%
2 Sterne	3%
1 Stern	7%

Reduce all cost except consumer advertising 4

% of Group Sales	FY 2018	FY 2019	Further Outlook
Consumer Marketing	0.7%	1.7%
Other Marketing	5.4%	4.6%
R&D	2.3%	2.4%
1 Logistics	11.0%	11.5%
Administration	6.1%	6.4%
Cost of Turnover	56.4%	56.8%

1 not including inbound cost

Financial Figures 2019

Financial Figures 2019

Key financial highlights

Group turnover on par with previous year

Strong growth in TV-advertising test market Eastern Europe

• Eastern Europe with significant growth of 6.2 % due to increased consumer marketing investments.
• Central Europe largely stable, strong growth in Italy due to expansion of distribution channels.

Group EBIT at EUR 9.9 million at upper end of forecast range

	2018	2019	∆
Group turnover € m	234.2	234.0	-0.1%
Gross margin	% 43.6	43.1	-0.5 pps
EBIT € m	13.1	9.9	-24.4%
EBIT margin	% 5.6	4.2	-1.4 pps
Earnings before taxes (EBT) € m	11.9	8.5	-28.9%
Net result for the period € m	8.4	5.8	-30.7%
EPS	€ 0.88	0.61	-30.3%

• EBIT decrease primarily due to increased logistics and marketing costs.
• Gross margin decrease primarily result of higher amortization and depreciation due to impairments of property, plant and equipment, inbound freight and impairments on inventories.
• Measures taken for optimization of cost structures.

Free Cash Flow significantly improved

in € m	2018	2019	∆
Cash flow from operating activities	10.2	15.9	5.7
Cash flow from investment activities	22.5	-5.8	-28.3
Cash flow from financing activities	-10.0	-10.7	-0.7
Change in cash and cash equivalents	8.7	-0.6	-11.5
Cash and cash equivalents at the end of reporting period	50.9	50.3	-0.6
Free cash flow1	3.7	10.1	6.4

in € m	31.12.2018	31.12.2019	∆
Cash and cash equivalents at the end of reporting period	50.9	50.3	-0.6
Group liquidity	50.9	50.3	-0.6
Financial liabilities	-	-	-

• Increase of cash inflow from operating activities mainly due to optimization of inventories and fall in receivables.
• Decline in Group liquidity mainly from dividend payment in the amount of € 10.0 m.

1 Sum of cash flow from operating activities and investment activities adjusted by proceeds from sale of financial assets.

2 IFRS 16 applied for the first time on 1 January 2019, using the modified retrospective method, previous year figures not adjusted.

Forecast Financial Year 2020

2020: Gross margin increase from turnover growth will be used to strengthen consumer advertising

Economic environment 2020	Global economic slowdown due to increasing political and economic tensions ► Effects of Corona-pandemic currently not foreseeable ► Economic slowdown in the EU ►
Forecast Group development 2020	Group: ► Household: Wellbeing: Private Label: EBIT of around € 9.5 m to € 10 m ► ►	Turnover growth of 8 % Turnover growth 8 to 9 % Turnover growth of 10 to 11 % Turnover growth of about 5 % Free cash flow of about € 6.5 m to € 7.5 m

• Forecast for 2020 financial year was made before possible effects of the corona crisis.
• Considering the dynamic developments of the corona pandemic, we are currently unable to estimate its impact on Leifheit's business development.

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	-1 € m	14.3	14.5	12.9	8.4	5.8
▪ ROCE	%				10.5	8.2

1 Adjusted by foreign currency results

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
Dividend3	€	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

3 2019: Proposal to the Annual General Meeting

Experienced management board

Henner Rinsche CEO + CFO

born 1970

Igor Iraeta Munduate COO born 1974

Previous experience

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

Core competencies

• General management, business development and consumer goods marketing

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

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%
1,50	Proposal to the Annual	2016: 5.1% 2012: 5.2%
1,00	General Meeting for	2019: 0.55 €
0,50
0,00	4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 1 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	0 2 3 4 5 6 7 8 9 0 2 3 4 5 6 7 8 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	9 1 0 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 scale Shape Sense Connect 200 Blood pressure monitor Systo Monitor Connect 300 Luftreiniger AirFresh Clean 300 und Clean Connect 500

Leifheit – 60 Years of passion for housework

Investor and Analyst Meeting Mar 2020 41

European competitors by category

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

Significant free float and international investors

Shareholder structure

March 2020

1 Definition of German stock exchange for indices

2 Including shareholdings of the management board

• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Joachim Loh, Haiger (GER), 8.26%
• Leifheit AG Nassau (GER), treasury shares, 4.91%
• Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 10.17%
• DBAY Advisors Limited, Douglas (IM), 7.33%
• Teslin Capital Management BV/Gerlin NV, Maarsbergen (NL), 5.05%
• MainFirst SICAV, Senningerberg (LUX), 5.04%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52%
• Share ownership under reporting threshold 45.69%

Financial calendar and contact

The Annual General Shareholders' Meeting scheduled for 20 May 2020 has been postponed to a later date. We will

inform about the new date in due time.

Dates 2020	Contact
13 May 2020	Corporate Communications / Investor Relations
Quarterly statement for the period ending 31 March 2020	Phone:	+49 2604 977-218
13 Aug 2020 Financial report for the first half-year ending 30 June 2020	Email:	ir@leifheit.com www.leifheit-group.com
11 Nov 2020 Quarterly statement for the period ending 30 September 2020

Investor and Analyst Meeting Mar 2020 44

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau