Leifheit AG

Investor Presentation • Sep 24, 2019

Scaling-up Success

Berenberg & Goldman Sachs Eighth German Corporate Conference

CEO Henner Rinsche CFO Ivo Huhmann

24 September 2019

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.

Agenda

• Introduction to Leifheit
• Key Strategic Initiatives
• Financial Figures 6M 2019
• Forecast Financial Year 2019
• Annex

Introduction to Leifheit

Introduction to Leifheit

Solid base to build on

Strong financial structure in € m Assets

Liabilities

Strong long-term stock performance above SDAX level

Investor presentation

Introduction to Leifheit

Leifheit Group

Introduction to Leifheit

Investor presentation

Present in leading Distribution Channels

Introduction to Leifheit

Operating in more than 80 Countries with 15 own Branches

Experienced Management Board

Henner Rinsche CEO born 1970

Ivo Huhmann CFO born 1969

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 management experience at C-Level
• Various global financial management functions at Stiebel Eltron and General Electric

Core competencies

• Digitalization, IT, cost productivity, strategic growth models, M&A and Post-Merger Integration

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

Introduction to Leifheit

Urgent Need for Change

¹ EBIT adjusted for foreign currency result

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

Scaling-up Success

Country Results 2018 Household and Wellbeing Business

CEO's Strategic Review

New Management identified Strategy to address Growth Themes

Create consumer demand and make brand stronger 1

Marketing spend

2018 in % of turnover

¹ Creating and pre-testing effective ads

² Increase distribution

Turnover development Italy

Household and Wellbeing in € m

0

0,5

1

1,5

2

2,5

3

3,5

Improve Gross Margin 3

Win-Win Retail Negos

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

Reduce all Cost except Consumer Advertising 4

% of Group Sales	FY 2018	Further Outlook
Consumer Marketing	0.7%
Other Marketing	5.4%
R&D	2.3%
1 Logistics	11.0%
Administration	6.1%
Cost of Turnover	56.4%

1 not including inbound cost

Financial Figures First half 2019

Key Financial Highlights

• Identifying and implementing strategic priorities
• Full year outlook within guidance

Group Turnover on par with Previous Year

due to overall change in customer mix.

Financial Figures first half 2019

15 % growth in TV-advertising Test Market Eastern Europe

Good Start in Q1 was followed by a restrained second Quarter

		6M 2018	6M 2019	∆
Group Turnover	€ m	121.5	121.5	--
Gross margin	%	44.0	42.8	-1.2 pps
Foreign currency result	€ m	0.1	0.2	>100%
EBIT	€ m	6.8	5.0	-25.9%
EBIT margin	%	5.6	4.1	-1.5 pps
Earnings before taxes (EBT)	€ m	6.2	4.3	-30.6%
Net result for the period	€ m	4.4	3.0	-31.5%
EPS	€	0.46	0.32	-30.4%

• EBIT decrease primarily due to the lower gross profit.

• Gross margin decrease due to negative customer and product mix effects.

Free Cash Flow improved, still too much Impacted by Working Capital

in € m	6M 20182	6M 2019	∆
Cash flow from operating activities	3.0	6.0	3.0
Cash flow from investment activities	13.1	-2.7	-15.8
Cash flow from financing activities	-10.0	-10.3	-0.3
Change in cash and cash equivalents	6.0	-7.0	-13.0
Cash and Cash equivalents at the end of reporting period	34.3	43.9	9.6
Free cash flow1	1.0	3.3	2.3

in € m	31.12.2018	30.06.2019	∆
Cash and Cash equivalents at the end of reporting period	50.9	43.9	-7.0
Group liquidity	50.9	43.9	-7.0

• Decline in Group liquidity mainly from dividend payment in the amount of m€ 10.0.
• 1 Sum of cash flow from operating activities and investment activities adjusted for financial assets.
• 2 IFRS 16 applied for the first time on 1 January 2019, using the modified retrospective method, previous year figures not adjusted.

Average Number of Employees declined by workload-related Fluctuations at Czech Plant

24.

2019

September

Forecast Financial Year 2019

Forecast Financial Year 2019

2019: Turnover Growth of roughly 3% and EBIT of around € 9 m to € 10 m expected

Economic environment 2019	Slowdown in growth due to increasing global and economic tensions ► Economic slowdown in the EU despite good domestic demand ► Retail trade growth in Germany weak ► European consumers' propensity to consume worsens ►
Forecast Group development 2019	Group: ► Household: Wellbeing: Private Label: EBIT of around € ►	Turnover growth of about 3 % (prev. 3 to 4 %) Turnover growth of about 3 % (prev. 2 to 3 %) Turnover growth of about 7 to 8 % (prev. 11 to 12 %) Turnover roughly on par with previous year (prev. growth of about 3 to 4 %) 9 m to € 10 m
	Free cash flow of about € ►	3.5 m to € 4.5 m

Long-term Financial Overview

		2014	2015	2016	2017	2018
Group Turnover	€ m	220.7	231.8	237.1	236.8	234.2
Profitability
 Gross margin	%	47.7	46.7	47.5	46.4	43.6
 Cash flow from operating activities	€ m	24.5	20.8	21.8	7.2	10.2
 Free cash flow	€ m	18.4	14.1	14.3	1.5	3.7
 EBIT EBIT adjusted1 	€ m € m	21.5 16.4	21.7 19.2	22.1 21.8	18.8 20.3	13.1 12.8
 EBIT margin	%	9.8	9.3	9.3	8.0	5.6
 EBT	€ m	19.8	20.2	20.6	17.7	11.9
 Net result for the period	-1 € m	14.1	14.3	14.5	12.9	8.4
 ROCE	%	20.3	18.1	16.3	12.7	8.5

1 Adjusted by foreign currency results

Long-term Financial Overview

		2014	2015	2016	2017	2018
Per Share1
Net result for the period2	€	1.49	1.51	1.53	1.35	0.88
Free cash flow	€	1.94	1.48	1.51	0.16	0.39
Dividend	€	0.90	1.00	1.05	1.05	1.05
Special dividend	€	--	0.38	0.40	--	--
Investments	€ m	6.2	7.1	7.8	7.8	6.6
Depreciation	€ m	6.3	5.8	6.2	6.4	6.9
		31/12/14	31/12/15	31/12/16	31/12/17	31/12/18
Employees	No.	1,068	1,074	1,093	1,137	1.134
Balance sheet total2	€ m	223.3	237.9	239.4	224.9	221.8
Equity	€ m	94.8	106.7	104.6	98.5	101.8
Equity ratio	%	42.5	44.9	43.7	43.8	45.9
Liquidity	€ m	62.8	68.2	69.5	57.2	50.9

1 Scrip issue in June 2017, 2013 – 2016 adjusted

2 Not including repurchased treasury shares

Financial Figures FY 2018

Committed to Shareholder Returns – 1.05 € dividend proposed to the AGM

	Long-term dividend development		Dividend yield 1
	Dividend per share / in €	2018: 5,9% 2017: 3,8% 2016: 5,1%	2014: 3,9% 2013: 5,3% 2012: 5,2%
1,50		2015: 5,6%	2011: 6,3%
		2018: 1.05 €
1,00
0,50
0,00	-1
	4 7 3 4 7 5 6 8 9 0 2 5 6 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	3 4 7 0 2 5 6 8 9 1 0 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	3 4 7 0 2 5 6 8 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2
	Bonus/special dividend	Dividend

1 Based on the particular closing price at year-end

Columbus

Speed Quirl

Comfort Slicr

Soehnle Awards (Selection)

Kitchen Scale Page Profi

Kitchen Scale Page Profi 3000

Body analysis scale Shape Sense Connect 200

Blood pressure monitor Systo Monitor Connect 300

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

Significant free Float and international Investors

Shareholder Structure

March 2019

Free float1,2 76.8%

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), 8.23%
• DBAY Advisors Limited, Douglas (IM), 7.33 %
• MainFirst SICAV, Senningerberg (LUX), 5.04%
• Teslin Capital Management BV/Gerlin NV, Maarsbergen (NL), 5.05%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52 %
• Share ownership under reporting threshold 47,63 %

Financial Calendar and Contact

Dates 2019	Contact
24 September 2019 Berenberg Goldman Sachs	Corporate Communications / Investor Relations
German Corporate Conference, Munich	Phone: +49 2604 977-218 Email: ir@leifheit.com
12 November 2019 Quarterly statement Q3	www.leifheit-group.com

25 – 27 November 2019 German Equity Forum, Frankfurt

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau