Leifheit AG

Investor Presentation • May 14, 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
• Financial Figures Q1 2019
• Financial Figures FY 2018
• Key strategic initiatives
• Forecast Financial Year 2019
• Investment Highlights
• Annex

Introduction to Leifheit

Introduction to Leifheit

Tradition – Innovation – Vision

1959

"We are your leading experts for solutions that make your everyday life at home more easy and convenient"

Leifheit Group

Household	Wellbeing	Private Label

• High-quality branded products with a high degree of consumer benefit, mid to upper price segment
• Consistent brand management
• Systematic processes for innovation and market launch
• Distribution in international markets
• Products in mid-price range
• Customer-specific product development
• Strong service component

Introduction to Leifheit

One of the leading suppliers of household products in Europe

Laundry care

40 % Turnover share

Laundry dryers, ironing boards and storage for fresh, clean and well-kept laundry

Kitchen goods

17 % Turnover share

Useful kitchen aids for opening, cooking, cutting or storing

Wellbeing

9 % Turnover share

Scales, medical products and air treatment: complementary new assortments for a modern lifestyle

Experienced Management Board

Ivo Huhmann CFO & CO-CEO ad interim born 1969

Igor Iraeta Munduate COO & CO-CEO ad interim born 1974

Henner Rinsche CEO from 1 June 2019 born 1971

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

Previous experience

• Many years of experience as President Europe at SodaStream
• Various leading positions at Henkel, Danone, PepsiCo and Procter & Gamble

Core competencies

• General Management, Business Development and consumer goods Marketing

Present in leading distribution channels

Introduction to Leifheit

Operating in more than 80 countries with 15 own branches

Financial Figures Q1 2019

Positive start in 2019 – figures within the forecast range

		3M 2018	3M 2019	∆
Group Turnover	€ m	62.2	64.3	3.4 %
Gross margin	%	44.6	42.9	-1.7 PP
Foreign currency results	€ m	-0.1	0.5	>100 %
EBIT	€ m	4.7	3.9	-17.2 %
EBIT margin	%	7.5	6.0	-1.5 PP
Earnings before taxes (EBT)	€ m	4.3	3.5	-18.4 %
Net result for the period	€ m	3.1	2.5	-18.7 %
EPS	%	0.32	0.26	-18.8 %

• Additional contribution margins from turnover increase were offset by negative customer and product mix effects
• Research and development costs, administrative and distribution costs increased by m€ 1.1 in total, in particular due to higher freight out and services

Significant growth in Central and Eastern Europe

Financial Figures Q1 2019

Growth in all business segments

Financial Figures FY 2018

Highlights Financial Year 2018

Successful implementation of strategic projects

At a glance

		2017	2018	∆
Group Turnover	€ m	236.8	234.2	-1.1 %
Gross margin	%	46.4	43.6	-2.8 PP
Foreign currency results	€ m	-1.5	0.3	>100 %
EBIT	€ m	18.8	13.1	-30.7 %
EBIT margin	%	8.0	5.6	-2.4 PP
Earnings before taxes (EBT)	€ m	17.7	11.9	-32.7 %
Net result for the period	€ m	12.9	8.4	-34.7 %
ROCE	%	12.7	8.5	-4.2 PP

• Gross profit impacted by foreign currency effects, price increases for materials, mix effects and lower contribution margins due to decreased turnover
• EBIT also affected by expenses for changes to the Board of Management

Strong domestic market and growth in Eastern Europe

Financial Figures FY 2018

Committed to shareholder returns – 1.05 € dividend proposed to the AGM

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

1 Proposal to the Annual General Meeting

2 Based on the particular closing price at year-end

Key strategic initiatives 2019

Trends and market environment offer attractive growth opportunities

Demographic change More private households, rising proportion of older population & higher quality orientation among young households	E-Commerce High growth rates for household goods & appliances (2016/2017: +26.5%)	Convenience Demand-oriented product innovation through systematic innovation and market introduction processes
Health Demand for well-being and healthcare products due to growing health awareness	Environment Durable high quality products	Digitalization and Connectivity High demand for battery-powered devices Connectivity of products and services

Key strategic initiatives

Strengthening strategy to consistently address growth themes

Interlock Online and Offline sales channels, establish Pan-European E-Commerce team, launch own web shop

Drive consumeroriented product innovations and renewal of existing portfolio

International

Efficiency

Digitalization

Innovation

Internationalization

Key strategic initiatives

Expansion of E-Commerce activities through European platform

Internationalization: Increased investments in Eastern Europe

Spring Conference

Forecast Financial Year 2019

Financial Forecast

2019: Leifheit targets turnover growth of 3 to 4 %

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 € ► Free cash flow of about € ►	Turnover growth of about 3 to 4 % Turnover growth of about 2 to 3 % Turnover growth of about 11 to 12 % Turnover growth of about 3 to 4 % 9 m to € 10 3.5 m to € 4.5 m

Investment Highlights