Leifheit AG

Investor Presentation • Mar 27, 2018

Leifheit AG Analyst Meeting 27 March 2018

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.

Agenda

• Introduction to Leifheit
• Highlights Financial Year 2017
• Financial Figures 2017
• Strategy "Leifheit 2020" and Key Initiatives 2018
• Investment Highlights
• Forecast Financial Year 2018
• Annex

Introduction to Leifheit

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

Leifheit Group
Brand Business (~ 85% of turnover)	Volume Business (~ 15% of turnover)
 Distribution in international markets  Product categories: Cleaning, Laundry Care, Kitchen goods, Wellbeing
 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	 Products in mid-price range  Customer-specific product development  Strong service component
	Project Business

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Introduction to Leifheit

Offering products in four categories

Cleaning

Leifheit has an easy and convenient solution for every cleaning demand. Our high quality cleaning products can be flexibly combined.

Kitchen goods

Opening, cooking, cutting or storing – Leifheit's kitchen accessories simplify work and keep hands and kitchen clean.

Laundry care

Whether it's laundry dryers for the house or rotary dryers for the garden, an ironing board or a steam ironing system – Leifheit ensures fresh, clean and well-kept laundry.

Wellbeing

Soehnle is a leading brand supplier for kitchen and bathroom scales. Air Treatment, medical products and wearables are complementary new assortments for a modern lifestyle.

Distributing in leading distribution channels Introduction to Leifheit

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Introduction to Leifheit

Operating in more than 80 countries with 15 own branches

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Introduction to Leifheit

Three main Group sites

Nassau/Germany: headquarter, marketing, R&D, sales, administration, production

Company grounds:	61,000 square meters
Built-up area:	26,000 square meters
Employees:	approx. 320
Fabrication:	automatic production lines, injection molding production
Main product groups:	dryers (Linomatic), cleaning and kitchen products

Zuzenhausen/Germany: logistic center

85,000 square meters
41,000 square meters
approx. 120
approx. 48,000 pallets
1,000 cubic meters (each day)

Blatná/Czech republic: main production facility and logistic center Eastern Europe

Company grounds:	108,000 square meters
Built-up area:	20,000 square meters
Employees:	approx. 480
Fabrication:	Metal production with powder-coating, injection moulding production, textile production
Main product groups:	dryers, ironing boards, cleaning products
Storage Capacity:	5,000 pallets
Distribution Capacity:	180 cubic meters (each day)

Highlights
Financial Year 2017

Unexpected challenges impact turnover and EBIT

Operational performance affected by special effects

• While Q1 and Q3 turnover remained behind previous year's results, Q2 and Q4 saw the anticipated growth
• Group turnover in 2017 almost stable compared to previous year
• Good performance in Germany and Eastern Europe cannot compensate the decline in Central Europe and Overseas
• EBIT affected particularly by unexpected negative foreign currency effects and increased material prices as well as by planned one-off effects from the reorganization of the sales organization in Germany

Fungibility of Leifheit stock increased

• Capital increase from company funds in connection with the issuance of bonus shares at a 1-to-1 ratio improved liquidity and trade volume as intended
• Proposing stable ordinary dividend for business year 2017

Group results at a glance

		2016	2017	∆
Group turnover	€ m	237.1	236.8	-0.1 %
Gross margin	%	47.5	46.4	-1.1 pps
Foreign currency results	€ m	0.3	-1.5	-
EBIT	€ m	22.1	18.8	-14.8 %
EBIT adjusted1	€ m	21.8	20.3	-6.9 %
EBIT margin	%	9.3	8.0	-1.3 pps
EBIT margin adjusted1	%	9.2	8.6	-0.6 pps
Earnings before taxes (EBT)	€ m	20.6	17.7	-14.0 %
Net result for the period	€ m	14.3	12.9	-11.4 %
ROCE	%	16.3	12.8	- 3.5 pps

1 Adjusted for foreign currency results due to the valuation at the balance sheet date of financial instruments to hedge future currency risks

Financial Figures 2017

Group turnover almost stable, despite good performance in Germany and Eastern Europe

• While Q1 and Q3 remained behind expectations, Q2 and Q4 saw the anticipated growth
• Germany grew by 2.5 % due to a strong performance of both brand business and volume business
• Eastern European markets again delivered significant growth of 11.3 %, driven by double-digit growth in the Czech Republic, Ukraine and Romania
• Central Europe declined by 4.6 %, driven by pressure in France, Luxembourg and Italy, not compensated by strong performance in Belgium

Brand Business with modest growth

		2016	2017	∆
Turnover	€ m	195.8	196.7	+0.5 %
Gross margin	%	50.2	49.0	-1.2 pps
Segment result (EBIT)	€ m	16.8	14.2	-15.5 %
Segment result (EBIT) adjusted1	€ m	16.6	15.1	-9.0 %
Employees	Pers.	913	1,003	+90

• Brand Business with high quality products by Leifheit and Soehnle brands are in the center of "Leifheit 2020" growth strategy
• Brand Business represents 83.1 % of total sales (2016: 82.6 %)
• Substantial growth drivers: cleaning products and laundry care
• EBIT impacted by negative foreign currency result, higher material prices and planned non-recurring expenses for the reorganization of sales organization and higher advertising costs
• Increase of employees due to insourcing in Czech Republic and to the re-organization of sales organization

Eastern Europe Rest of the World

Analyst Meeting I March 2018 I p. 16 1 Adjusted for foreign currency results due to the valuation at the balance sheet date of financial instruments to hedge future currency risks

Volume Business suffering from French hyper markets development

		2016	2017	∆
Turnover	€ m	41.3	40.1	-2.8 %
Gross margin	%	34.8	33.5	-1.3 pps
Segment result (EBIT)	€ m	5.3	4.6	-13.9 %
Segment result (EBIT) adjusted1	€ m	5.2	5.2	--
Employees	Pers.	180	165	-15

• Focus on profitability, focused on European markets and project business
• Strong sales increase in Germany cannot compensate for decline in France and USA
• Volume Business represents 16.9 % (2016: 17.4 %) of group turnover
• Shift of employees from Volume to Brand Business

1 Adjusted for foreign currency results due to the valuation at the balance sheet date of financial instruments to hedge future currency risks

Financial Figures 2017

Operating Cash Flow impacted by rise in working capital

in € m	2016	2017	∆
Cash flow from operating activities	21.8	7.2	-14.6
Cash flow from investment activities	-27.5	-10.7	+16.8
Cash flow from financing activities	-13.0	-13.8	-0.8
Change in cash and cash equivalents	-18.7	-17.3	+1.4
Change in cash and cash equivalents due to exchange rates	-	-	-
Cash and cash equivalents at the end of reporting period	45.5	28.2	-17.3
Free cash flow1	14.3	1.5	-12.8

in € m	31.12.2016	31.12.2017	∆
Cash and Cash equivalents at the end of reporting period	45.5	28.2	-17.3
Current financial assets	24.0	29.0	+5.0
Group liquidity	69.5	57.2	-12.3
Financial liabilities	-	-	-
	69.5	57.2	-12.3

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1 Sum of cash flow from operating activities and investment activities adjusted for financial assets

Working Capital mainly impacted by Financial Figures 2017

decrease in liabilities

Working Capital

in % of turnover

• Decrease in liabilities from LTI pay-out
• Decrease in trade liabilities
• Increase in inventories to support new product launches and new customer acquisition

Investments into production and distribution in Eastern Europe

Investments vs. depreciation

Investments 2017:

• € 6.7 m in fixed assets (2016: € 6.6 m), mainly in new production equipment and the logistics center Eastern Europe
• € 1.1 m (2016: € 1.2 m) in intangible assets (mainly software/productand customer oriented systems)
• Investment ratio 4.5% (2016: 4.4%)
• Brand Business: € 6.7 m (2016: € 7.1 m)
• Volume Business: € 1.1 m (2016: € 0.7 m)

Continuous strong capital structure and financial flexibility

Equity/-ratio¹

31 December, in € m

Cash, cash equivalents and short-term financial assets

in € m

1 from 2012 according to IAS 19

Sales and R&D teams further strengthened

Employees by segment

31 December

• Reallocation of staff from volume business to brand business due to completion of contract manufacturing
• Sales, R&D and technical capacities further strengthened
• Leifheit again "Top Employer Midsized Germany 2018"

Proposal to the Annual General Meeting on May 30, 2018: stable ordinary dividend

• In 2017, Leifheit AG carried out a capital increase from company funds with the issuance of bonus shares at a 1-to-1 ratio. The capital increase was carried out by issuing 5,000,000 new shares (bonus shares)
• Board of Management and Supervisory Board propose appropriating the Leifheit AG balance sheet profit of 10.000.000 € as follows:
• Dividend of € 1.05 per eligible no-par-value bearer share

Financial Figures 2017

Long-term performance and shareholder-oriented dividend policy is fundamental for stock attractiveness

• Continuous attractiveness for investors due to high free float of 76.7 %
• Share price performance in 2017 at approx. -1%, throughout the past ten years at a CAGR of approx. +15 %

Price performance 2017

			Above average dividend yield1	:
---	--	--	-------------------------------	---

2017:	3.8%2	2013:	5.3%
2016:	5.1%	2012: 5.2%
2015:	5.6%	2011:	6.3%
2014: 3.9%		2010:	5.6%3

1 Based on the particular closing price at year-end

2 Proposed dividend for 2017

3 Plus special dividend on disposals

10 year price performance

Period: 1 January 2008 to 15 March 2018

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Strategy "Leifheit 2020" sharpened -Key Initiatives 2018

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

Strategy "Leifheit 2020" sharpened - Better use of the opportunities of digitalization

• Strengthen our existing assortment, accelerate development of new products
• Sales force effectiveness / efficiency program
• Increase efficiency in structure and value chain
• Foreign currency risk reduction by rolling exchange rate hedging system with closer coordination to the planning period
• Digitalization as an integral part of the strategy
• Positioning of brands in the digital media
• Further strengthen E-Commerce position
• Connected products and services
• Digital processes and efficiency

2018: implementation of important future-oriented projects that will strengthen our mid-term comprehensiveness and significantly improve profitability in the future.

Vectors of growth: New products vs existing business

New products (20 – 30 % of annual turnover growth)

• Outcome of the new product pipeline defined until 2020
• Based on the mega trends relevant for Leifheit:
• Fading of traditional gender rolls
• Electrification
• Digitalization & connectivity
• Based on Leifheit consumer segmentation
• New product development closer to existing assortments
• Different innovation streams by grade of technical change / newness of application

You have something against bacteria? So do we!

CleanTenso

Simply hygienic and clean without chemicals.

How housework's done today.

www.leifheit.com

For the many small battlefields of the day

$\overline{\cdots}$

Cordless Vacuum Cleaner Regulus PowerVac $2_in1$

Cordless, powerful, ready-to-go

How housework's done today.

twww.leifheit.com

New digital business segment Soehnle connect

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Vectors of growth: New products vs. existing business

Existing business (70 – 80 % of annual turnover growth)
 Further expand online business across all geographies, open-up new e-commerce customers, drive multi-channel approach
 "Win from strength markets" – Europe stationary  Conversion of existing customer listings in broad distribution by
 Sales effectiveness/efficiency programs  Marketing/promotion programs
 Closure of listing gaps in existing and new customers
 "Win from behind" markets – Europe stationary
 Entry via promotional business into selected customers based on a hunting list  Conversion of promotions in listings
 "Entrepreneurs" – ME/Asia
 More focus as of 2018 (Asia)

Sales effectiveness and efficiency program in Germany

Harmonized "go-to-market" strategy drives substantial growth in Eastern Europe

• Situation in 2014: Lack of structured market approach to Eastern European (EE) region
• Analysis of each individual EE country and establishment of EE coordination team with clearly defined responsibilities and targets
• Developed a hunting list for each country
• Established unified model for promotions and assortment for EE region
• Build-up of new customer service center for EE countries in Prague, Czech Republic
• Established central logistics center for EE countries in Blatná, Czech Republic

More contemporary positioning of Leifheit brand

Well-thought-out and easy-to-use

products from Leifheit. Our Regulus PowerVac 2in1 cordless vacuum cleaner, the CleanTenso steam cleaner, the CLEAN TWIST Cleaning System, the Airboard ironing board and the successful Leifheit window vacuum cleaner…

…all have one thing in common: they help people in today's ever faster-paced world by making housework easier and the home more attractive so that there is more time for the truly important things in life. Leifheit. How housework's done today.

More contemporary positioning of Leifheit brand Strategy "Leifheit 2020" sharpened - Key Initiatives 2018

TV advertisement

Q1 2018 CLEAN TWIST System Q1 2018: Window vacuum Dry & Clean Q1 2018: Lino Protect 400 Q4 2018: Air Board

Focus on Online communication Strategy "Leifheit 2020" sharpened - Key Initiatives 2018

• Accompanying measures related to TV advertisements
• Strengthening online awareness of Leifheit brand and tapping into modern target groups
• Campaigns in wide-reach online media channels for selected Leifheit products:

Google Display, Youtube, Facebook, Instagram

Forecast Financial Year 2018

2018: Forward with core strength and digitalization

Economic environment 2018	Moderate economic growth in our key European markets ► External risks of changing US economic policies, a rising ► level of inflation and regional conflicts Retail business optimistic for 2017, propensity of customers ► consumption continuously stable
Forecast Group development 2018	Continue to pursue group growth strategy "Leifheit 2020", ► despite current risks in the retail sector Group: Turnover growth of 4 – 5% ► Brand Business: Turnover growth of 5 – 6% Volume Business: Turnover on previous year's level EBIT of € 17 m to € 18 m, return to target EBIT margin as of 2019 ► Investments of about € 8 m (2017: € 7.8 m) ► Free cash flow of about € 5 to 7 m ►
Mid term Group development	Sustainable and profitable organic turnover growth ► of about 4 % CAGR1 Target EBIT margin of 8 to 9 % ►

1 Compound Annual Growth Rate

Investment Highlights

Committed to shareholder returns Investment Highlights

Long-term dividend development

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1 Proposal to the Annual Meeting

We drive from strength Investment Highlights

Strong brands	Well known, high consumer confidence ► Leading positions: Germany and many European countries ► High-quality supplier, middle and upper price range ►
Sustainable earnings	Non-cyclical business: Leifheit brands are used every day ► Well prepared to exploit e-commerce potential ► Efficient cost structure, sustainable margins, high cash flow, solid financial position ►
Attractive dividend policy	Distribution of approx. 75% of max (free cash flow, net income) targeted ► and backed by solid cash flow Surplus cash can be distributed to shareholders via special dividend ►
Significant growth potential	Offline/online conversion helped by well suited e-commerce assortment ► Strategy "Leifheit 2020" to reach higher levels of profitable growth ► Organic growth through focus on core categories, innovation, digital, efficiency  External growth options (focus on core categories and capabilities) 

Leifheit is more than just household products

Investment Highlights

Leifheit is more than just household products – for almost 60 years

Long-term financial overview

		2013	2014	2015	2016	2017
Turnover	€ m	220.9	220.7	231.8	237.1	236.8
Group adjusted1 	€ m	219.5	220.7	231.8	237.1	236.8
Brand Business1 	€ m	172.8	180.4	188.1	195.8	196.7
 Volume Business	%	46.7	40.3	43.7	41.3	40.1
Profitability
 Gross margin	%	44.9	47.7	46.7	47.5	46.4
 Cash flow
from operating activities	€ m	22.9	24.5	20.8	21.8	7.2
 Free cash flow	€ m	19.5	18.4	14.1	14.3	1.5
 EBIT	€ m	14.9	21.5	21.7	22.1	18.8
EBIT adjusted2 	€ m	16.9	16.4	19.2	21.8	20.3
 EBIT margin	%	6.8	9.8	9.3	9.3	8.0
 EBT	€ m	13.3	19.8	20.2	20.6	17.7
 Net result for the period	-1 € m	10.2	14.1	14.3	14.5	12.8
 ROCE	%	12.6	20.3	18.1	16.3	12.8

1 Turnover 2013 adjusted for discontinued business with Dr. Oetker Bakeware

2 Adjusted by foreign currency results

Long-term financial overview

		2013	2014	2015	2016	2017
Per Share1
Net result for the period2	€	1.08	1.49	1.51	1.53	1.35
Free cash flow	€	2.06	1.94	1.48	1.51	0.16
Dividend Special dividend	€ €	0.83 --	0.90 --	1.00 0.38	1.05 0.40	1.053 --
Investments	€ m	3.6	6.2	7.1	7.8	7.8
Depreciation	€ m	6.8	6.3	5.8	6.2	6.4
		31/12/13	31/12/14	31/12/15	31/12/16	31/12/17
Employees
Group	No.	1,049	1,068	1,074	1,093	1,168
Brand Business	No.	757	792	865	913	1,003
Volume Business	No.	295	276	209	180	165
Balance sheet total2	€ m	203.8	223.3	237.9	239.4	224.9
Equity	€ m	94.7	94.8	106.7	104.6	98.5

1 Scrip issue in June 2017, 2013-2016 adjusted

2 Not including repurchased treasury shares

3 Proposal to the Annual meeting

Long-term financial overview

adjusted for non-operating effects

Turnover and EBIT adjusted for Soehnle Professional (divested as of 1.1.2006)

Turnover and EBIT adjusted for bathroom division (divested in 2010)

Turnover adjusted for Dr Oetker Bakeware (termination of license agreement by 31.12.2012)

EBIT 2011 adjusted for one-off consolidation effects of € 2.5 m from obtaining control over Leifheit CZ a.s.

EBIT 2012 adjusted for one-off effects of € 1.2 m from sale of assets relating to termination of license agreement Dr Oetker Bakeware

Analyst Meeting I March 2018 I p. 50 EBIT 2014 – 2017 include foreign currency results: 2014: € 5.1 m, 2015: € 2.5 m, 2016: € 0.3 m, 2017: € -1.5 m, EBIT margins adjusted for this effects

Experienced Management Board

Thomas Radke *1961 I CEO

Core competencies

• Driving growth via strategy and business model analysis, development and implementation
• Marketing, Sales, HR
• M&A and post-merger integration

Previous experience

• CEO Herlitz AG
• Member of the Board of Directors Pelikan Holding AG
• General Management, Marketing and Sales positions at Carl Zeiss Vision, Procter & Gamble/ Wella, Effem/Mars and Henkel KGaA

Ivo Huhmann *1969 I CFO

Core competencies

• Value creation, performance management, controlling, turnaround
• Creating strategic growth models
• Digitalization, IT, Six Sigma, Lean
• China operations and sales
• M&A, post-merger integration, cultural change

Previous experience

• CEO Bergluft Co. Ltd. Startup
• Managing Director Stiebel Eltron
• CFO General Electric-Healthcare Germany
• CFO General Electric-Fanuc Europe
• Various global financial management functions in General Electric

Ansgar Lengeling *1966 I COO

Core competencies

• Purchasing, production, logistics
• R&D and quality management

Previous experience

• Vice President Manufacturing, Bosch Green
• General Manager Bosch Power Tools, Hungary
• General Manager, Bosch Power Tools, China
• Quality Director, Bosch Power Tools, Hungary

European competitors by category Annex

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

Leifheit – more than 55 years "always a better idea"

Significant free float and international investors Annex

Shareholder structure

November 2017

Non free float shareholders1,2 23.3 % Free float1,3 76.7 %

3.03%

1 Definition of German stock exchange for indices 2 Including restricted employee stocks (0.06%) 3 Including shareholdings of the Management Board

• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Joachim Loh, Haiger (GER), 8.26%
• Capital Income Builder, Los Angeles (USA), 5.60 %
• EQMC Europe Development Capital Fund plc (IRE), 5.09%
• Teslin Capital Management BV/Gerlin NV, Maarsbergen (NL), 5.05%
• MainFirst SICAV, Senningerberg (LUX), 5.04%
• Leifheit AG Nassau (D), treasury shares, 4.91%
• Share ownership under reporting threshold of 3.00 %

Financial calendar, share data, contact Annex

Dates 2018

27 March 2018 Annual Financial Reports 2017 Analyst's meeting, Frankfurt/Main, Germany

15 May 2018 Quarterly statement Q1

30 May 2018 Annual General Meeting Frankfurt/Main, Germany

14 August 2018 Financial report for the period ending 30 June 2018

14 November 2018 Quarterly statement Q3

Share data

ISIN: Ticker:	DE0006464506 LEI:GR, LEIG.DE
Trading segment: Share capital:	Prime Standard € 30,000,000.-
Number of shares:	10,000,000 no-par value ordinary bearer shares
Stock market launch:	3 October 1984
Designated Sponsor:	Oddo Seydler Bank AG

Contact

Petra Dombrowsky

Corporate Communications / Investor Relations

Phone: +49 2604 977-218 Email: ir@leifheit.com

www.leifheit-group.com

Aktiengesellschaft

Postfach 11 65 56371 Nassau/Lahn www.leifheit -group.com