Leifheit AG

Investor Presentation • Sep 25, 2015

Leifheit AG

Investor Presentation

September 2015

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
• Business development H1 2015
• Update "Leifheit 2020"
• Investment highlights and outlook
• Annex

A leader in the European market of branded goods for selected household areas

Leifheit Group
Brand business (~ 80% of turnover)	Volume business (~ 20% 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

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.

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.

Kitchen goods

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

Wellbeing

Under the Soehnle brand we offer an assortment of scales that always cut a good figure – in the kitchen and the bathroom.

Introduction to Leifheit

Operating in more than 80 countries with 15 own branches

Using every important distribution channel

Group key figures FY 2014

Business development H1 2015

Group H1 2015 – turnover > € 113 m (+ 4.5 %) driven by growing brand business

Group turnover by region

H1 2015

• Varying development of regional markets
• Germany with most dynamic growth
• Central Europe: challenging economic trends in some European markets continue; positive development in Austria, Italy and Switzerland
• Eastern Europe: high growth dynamics in Czech Republic, Poland and Slovakia; market declines furthermore expected in Russia and Ukraine

Group key figures H1 2015 – EBIT rise to € 10.4 m

		H1 2015	H1 2014	∆ (%)
Group turnover	€ m	113.2	108.3	4.5
Gross margin	%	46.1	47.4	-1.3 pps
Cash flow from operating activities	€ m	7.4	10.6	-30.7
Free cash flow	€ m	4.8	8.8	-45.4
Foreign currency results	€ m	1.9	0.5	>100
EBIT	€ m	10.4	8.1	28.0
EBIT margin	%	9.2	7.5	1.7 pps
Earnings before income taxes (EBT)	€ m	9.6	7.4	31.2
Net result for the period	€ m	6.8	5.2	30.7

• Further EBIT growth driven by turnover and positive foreign currency result
• Gross margin affected by currency-related higher purchase prices
• Net result for the period rose by nearly a third
• Cash flow from operating activities affected by an increase in inventories and a decrease in trade payables and other liabilities
• Free cash flow declined as a result of higher investments

Brand business H1 2015 – significant growth (+6.1 %) due to high demand in Cleaning and Laundry Care

		H1 2015	H1 2014	∆ (%)
Turnover	€ m	95.9	90.4	6.1
Gross margin	%	49.1	50.1	-1.0 pps
Segment result (EBIT)	€ m	9.1	6.9	31.9
EBIT margin	%	9.5	7.6	1.9 pps
Employees (average number)		786	757	3.8

• Window vacuum cleaner remains bestseller
• Strong demand in Laundry Care mainly driven by ironing products
• EBIT growth driven by turnover and foreign currency result

Volume business H1 2015 – EBIT stabilized despite turnover decline

		H1 2015	H1 2014	∆ (%)
Turnover	€ m	17.3	17.9	-3.4
Gross margin	%	29.7	34.0	-4.3 pps
Segment result (EBIT)	€ m	1.3	1.2	8.3
EBIT margin	%	7.5	6.7	0.8 pps
Employees (average number)		267	278	-4.0

Project Business

Laundry Care category increased turnover mainly due to French subsidiary Herby

• French subsidiary Birambeau almost compensated partial delisting by a retail customer
• Project business with kitchen products in the USA below previous years' performance
• Gross margin affected by currency effects and shifts in product mix
• EBIT stable due to increased foreign currency result

Update "Leifheit 2020"

Strategy "Leifheit 2020" set to reach higher levels of growth and excellence

• Starting with an efficient platform, solid margins and a sharpened profile Leifheit is focusing on future growth:
• Expansion of the product portfolio
• Expansion of geographical footprint
• External growth options (focus on core categories)
• Leifheit is targeting organic growth of 5-6 % CAGR
• Leifheit defined 10 strategic guidelines to strengthen competitiveness, drive growth and increase sustained profitability:
• Where to grow?
• How to grow?
• Strategic guidelines are the basis for numerous individual projects.

"Leifheit 2020" – on track Update "Leifheit 2020"

"Leifheit 2020"

Nov. 2014

• Definition of "high importance projects", e.g.
• Implementation of SAP EWM (extended warehouse management)
• Implementation of new corporate culture
• Implementation of new competence model for executives and senior staff

Launch of new products for the Soehnle brand

• Development of new Leifheit products
• New products to be presented in February 2016 at the "Ambiente" trade fair in Frankfurt.

Update "Leifheit 2020"

Innovative and leading solutions for target users

• Leifheit is driving portfolio innovation via increased R&D and marketing power.
• Definition of innovation degrees improves advance planning and financial risk assessment.
• Further development of the innovation process ("Innovation Factory") including the consumer, design competency and stringent selection of projects to be realized.
• Targeting additional product systems with easy and convenient "hero products": from an initial product idea to a full range of product solutions – the basis for next levels of organic growth.

ORG026A

Update "Leifheit 2020"

Product systems built on "hero products"

… and further extensions

ORG026A

Update "Leifheit 2020"

Product system expansion driving topline growth

Leifheit CLICK system net sales

Investment highlights and outlook

Committed to shareholder returns

Long-term dividend development

Dividend per share / in €

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	Noncyclical 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	Distribution of ca. 75% of max (free cash flow, net income) targeted ► and backed by solid cash flow
Significant growth potential	Offline/online conversion of well suited assortment ► Strategy "Leifheit 2020" to reach higher levels of profitable growth ► Organic growth through focus on core categories, consumers, innovation, digital,  efficiency External growth options (focus on core categories) 

Leifheit is known to deliver on promises.

Outlook FY 2015 – focus on growth strategy; turnover expectations slightly up

Economic environment 2015	 Ongoing uncertainties for the economic development in the EU in line with the Greek crisis
	 Risks in Eastern Europe/Russia in the light of the political crisis in the Ukraine
	 German trade and industry is confident for 2015, furthermore positive consumer sentiment
Group development 2015	 Establish Group strategy "Leifheit 2020" with new strategic guidelines  Group: growth by 3% to 4% Brand business: growth by 4% to 5% Volume business: stable development  Group EBIT of the higher end of the range 19 and 20 m expected1) between €  Investments of € 9.0 m planned  Free cash flow of € 0.0 m estimated
Group development until 2020	Sustainable and profitable organic growth of 5% to 6% CAGR2)   Supplemented by external growth options (M&A)  EBIT margin target of 8%

1) Based on the assumption that the US dollar exchange rate remains at the level seen on 31 March 2015 (FX 1.07 US dollar)

2) Compound Annual Growth Rate

Investor presentation I September 2015 I p. 23

Group FY 2014 – stable turnover with growing brand business

172.8 180.4 46.7 40.3 219.5 220.7 0 50 100 150 200 2013 2014 Volume business Brand business Group turnover by segment FY 2014 / in € m

Group turnover by region

FY 2014

• Varying development in regional markets.
• Stable domestic demand in Germany.
• Central Europe: positive stimulus from Spain and Italy; challenging economic trend in France.
• Eastern Europe: high dynamics in Poland, Czech Republic and Slovakia; declines in Russia and Ukraine as expected.

Group FY 2014 – significant increase in profitability

		2014	2013	∆ (%)
Group turnover1)	€ m	220.7	219.5	+0.5
Gross margin	%	47.7	44.9	+2.8 pps
EBIT	€ m	21.5	14.9	+44.3
Foreign currency result	€ m	5.1	-2.0	>100
EBIT adjusted2)	€ m	16.4	16.9	-2.6
EBIT margin	%	9.8	6.8	+3.0 pps
EBIT margin adjusted2)	%	7.4	7.7	-0.3 pps
Earnings before income taxes (EBT)	€ m	19.8	13.3	+48.7
Net result for the period	€ m	14.1	10.2	+37.7
ROCE	%	20.3	12.6	+7.7 pps

• Disproportional growth in earnings due to improved gross margin and extraordinary high foreign currency results
• Significant rise in ROCE by 7.7 pps mainly due to increased EBIT

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

2) Adjusted for foreign currency result

Group FY 2014 – improved operating cash flow

in € m	2014	2013	∆
Cash flow from operating activities	24.5	22.9	1.6
Cash flow from investment activities	-9.1	0.5	-9.6
Cash flow from financing activities	-7.8	-7.2	-0.6
Effects of exchange rate differences	0.2	1.0	-0.8
Net change in cash and cash equivalents	7.9	17.2	-9.3
Cash and cash equivalents at the end of the reporting period	58.8	51.0	7.8
Short-term securities	4.0	1.0	3.0
Group liquidity	62.8	52.0	10.8
Free cash flow1)	18.4	19.5	-1.1

• Higher cash flow from operating activities due to higher net result for the period (€ 14.1 m), depreciations in the amount of 6.3 Mio €, increase of receivables by 2.0 Mio €, increase of inventories by € 1.8 m and the increase of trade payables and other liabilities by € 8.5 m.
• Reduced cash flow from investment activities particularly due to higher investments in tangible and intangible assets of € 6.2 m (2013: € 3.6 m) and cash outflow for investments in financial assets of € 3.0 m (2013: € -2.3 m)

¹⁾ Sum of cash flow from operating activities and cash flows from investing activities, adjusted for deposits and withdrawals in financial assets and the sale of division.

Group FY 2014 – strengthening of R&D and marketing, expansion of production (enhanced insourcing)

Group FY 2014 – investments on normal level

Investments

• € 5.1 m (2013: € 3.3 m) investments in tangible assets largely related to tools for new products, machinery and factory and office equipment
• € 1.0 m (2013: € 0.3 m) investments in intangible assets (mainly software)
• Investments in Brand business: € 5.5. m Volume business: € 0.7 m
• Linking the distribution logistics for Eastern Europe at Czech plant in Blatná will lead to higher investments in 2015
• Future annual investments will remain stable at ~€ 6.0 m

Solid financial position Annex

• Equity increased by € 4.5 m as at 30 June 2015 as a result of the positive net result for the period, positive other comprehensive income and dividend paid
• Group liquidity decreased by € 3.9 m due to dividends paid, financing of increased inventories and investments as well as reduction in liabilities

Working Capital at stable levels Annex

Working Capital

in % of turnover

• Receivables and inventories above the year-end figures 2013 due to seasonal factors
• Liabilities rose relating to the balance sheet date

1) 2010 ultimately without consolidation of Leifheit CZ a.s.

Working Capital remained stable at a good level of 17.8 %

Successful restructuring led to efficiency, improvement of margins and sharpened profile of product categories...

1	2	3	4	5	6
Company positioning	Portfolio optimization	Change Management	Performance orientation	Financial stabilization	Focusing on brand and margin
20081) Brand provider with a focus on clever and innovative household products in the core categories:	Concentration of resources on strategic business areas	Control of change processes within the organization	Standardized management processes – measurable, transparent and success-oriented	Result of the group positioning, portfolio optimization, change management and performance orientation	2014 Focus on Brand Business Organic growth: I. Convergence on
- Cleaning - Laundry Care - Kitchen - Wellbeing	- Sale of Soehnle Professional - Sale of the business unit 'bathroom' - Change of ladders segment against pressure steam ironing - Termination of the l	- General Principle - Leadership - Transparency - Employees - Innovation - Systems & Processes	- Continuous benchmarking - Profitable growth - Cost efficiency - Capital efficiency - Cash generation	- Solid cash flows - No financial liabilities	strategic focus markets II. Intensify E-commerce III. Strengthening of R&D/Innovation power IV. Brand and communication strategy with a focus
	icense agreement with Dr Oetker Bakeware				on POS External growth: V. M&A

1) 2008 – today, settled and rolling processes

ORG026A

… and led to significant growth in earnings

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.

Investor presentation I September 2015 I p. 33 EBIT 2012 adjusted for one-off effects of € 1.2 m from sale of assets relating to termination of license agreement Dr Oetker Bakeware EBIT 2014 includes positive effects from foreign currency results in the amount of € 5.1 m, EBIT margin 2014 adjusted for this effect

Leifheit's vision for 2020 Annex

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

ORG026A

"

Investor presentation I September 2015 I p. 34

"Leifheit 2020" strategic guidelines Where we will grow:

1. Consumer

• Target all females and males who use and/or shop household products for in-home use (indoor/outdoor)
• Address users who are prepared to buy brand products in the middle to upper price segment as well as value related users who are more price-conscious

2. Brands and categories

• Focus Leifheit brand on Clean & Care in the middle to upper price segment, cover additional basic price points with (a) second brand(s), target: significant growth
• Deliver acquisitions in Clean & Care categories
• Position Soehnle closer to the brand core, target: significant growth
• Revise Kitchen business model and search for a new brand, target: moderate growth

3. Regions and countries

• Develop and design for European markets
• First, exploit European growth opportunities (PL/Iberia/Nordics/UK/rest of EE), as of 2015
• Second, become intentional in exploiting US / Asia growth opportunities, as of 2018

4. Customers

• Be distributed wherever our target group wants to shop: globally and in all distribution channels
• Further strengthen e-commerce position

"Leifheit 2020" strategic guidelines How we will grow:

5. Product quality

Ensure that product quality needed to compete as a branded goods supplier is always in place

8. Innovative and leading solutions for dealers

• Enable dealers to differentiate with tailor-made solutions
• Deliver a full category approach for

"Clean & Care"

Elevate POS-Excellence across all distribution channels – online and offline = Digitally led

6. Best in class user focus

• Strengthen focus on consumer needs and in depth understanding of easiness and convenience
• Define additional search fields
• Deliver the "Design factory" for our industries

9. Value chain efficiency

• Continuous improvement of value chain efficiency: Focus on initiative development and order generation/fulfillment processes
• Continuously drive out all nonvalue adding cost

7. Innovative and leading solutions for target users

• Deliver additional product systems with easy and convenient "hero" products in the center
• Deliver products that are characterized by a brand specific, appealing design

10. Culture and employees

• Drive appropriate cultural change
• Properly develop our employees

Geared towards further growth – organization for approx. € 280 m turnover

€ 10.0 m Turnover growth ~ € 2.0 m EBIT

Long-term financial overview (1|2)

		2010	2011	2012	2013	2014
Turnover	€ m	210.9	222.1	224.2	220.9	220.7
Group adjusted1) 	€ m	205.2	215.8	217.4	219.5	220.7
Brand business1) 	€ m	158.5	164.2	170.9	172.8	180.4
 Volume business	%	46.7	51.6	46.5	46.7	40.3
Profitability
 Gross margin	%	42.4	43.0	43.6	44.9	47.7
 Cash flow from operating activities	€ m	12.0	12.8	8.2	22.9	24.5
 Free cash flow	€ m	5.7	7.7	-1.4	19.5	18.4
 EBIT EBIT adjusted2) 	€ m € m	8.8 8.8	13.9 11.4	14.2 13.0	14.9 16.9	21.5 16.4
 EBIT margin	%	4.2	5.1	5.8	6.8	9.8
 EBT	€ m	6.0	12.2	12.2	13.3	19.8
 Net result for the period	-1 € m	5.5	12.1	9.4	10.2	14.1
 ROCE	%	7.8	9.7	10.2	12.6	20.3

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

2) EBIT 2011 adjusted by one-off consolidation effects from obtaining control over Leifheit CZ a.s.

EBIT 2012 adjusted by one-off effects from sales of assets relating to termination of license agreement Dr Oetker Bakeware

EBIT 2014 adjusted by extraordinary effects from foreign currency result (€ 5.1 m)

Investor presentation I September 2015 I p. 38

Long-term financial overview (1|2)

		2010	2011	2012	2013	2014
Per Share
Net result1) 	€	1.15	2.55	1.97	2.16	2.97
Free cash flow1) 	€	1.20	1.63	-0.28	4.11	3.88
 Dividend	€	1.00	1.30	1.50	1.65	1.80
 Special dividend	€	2.00	--	--	--	--
Investments in tangible assets	€ m	4.4	5.4	9.3	3.3	5.2
Depreciation in tangible assets	€ m	5.4	5.3	5.3	5.5	5.3
		31/12/10	31/12/11	31/12/12	31/12/13	31/12/14
Employees
 Group	No.	1,141	1,032	1,025	1,026	1,055
 Brand business	No.	751	726	741	741	782
 Volume business	No.	390	306	284	285	273
Balance sheet total2)	€ m	207.0	198.9	205.9	203.8	223.3
Equity2)	€ m	101.5	98.9	92.8	94.7	94.8

1) Not including treasury shares

2) From 2012 in accordance with IAS 19 (revised in 2011)

Investor presentation I September 2015 I p. 39

Experienced Management Board Annex

Thomas Radke 53 I CEO

Core competencies:

• Driving growth via strategy and business model analysis, development and implementation
• Marketing and Sales
• 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

Dr Claus-O. Zacharias 61 I CFO

Core competencies:

• Performance management, process optimisation and value creation concepts
• Controlling, Finance and Operations
• M&A and post-merger integration

Previous experience:

• CFO NICI GmbH
• CFO Lehnkering GmbH
• CFO tegut… Gutberlet Stiftung & Co.
• CFO Steilmann-Holding
• CFO Eismann International GmbH
• Controlling/Finance Suedzucker AG

Main Group sites Annex

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

Company grounds:	61,000 square meters
Built-up area:	26,000 square meters
Employees:	approx. 300
Fabrication:	automatic production lines, injection molding production
Main product groups:	dryers (Linomatic), cleaning and kitchen products

Zuzenhausen/Germany: logistic center

Company grounds:	85,000 square meters
Built-up area:	41,000 square meters
Employees:	approx. 100
Storage Capacity:	approx. 48,000 pallets
Distribution Capacity:	1,000 cubic meters

Blatná/Czech republic: main production facility

Company grounds:	108,000 square meters
Built-up area:	20,000 square meters
Employees:	approx. 400
Fabrication:	Metal production with power-coating, injection molding production, textile production
Main product groups:	dryers, ironing boards, cleaning products
Investments 2015:	€ 3 m planned in distribution logistics for Eastern Europe

Investor presentation I September 2015 I p. 41

European competitors by category Annex

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

Leifheit – 55 years "always a better idea" Annex

Share data and performance Annex

Short-term performance

Long-term performance

Period: 1 January 2010 to 15 September 2015

Key Data

ISIN: Ticker:	DE0006464506 LEI
Trading segment:	Prime Standard
Share capital:	€ 15,000,000.-

Number of shares:	5,000,000 no-par value ordinary bearer shares
Stock market launch:	3 October 1984
Designated Sponsor:	Oddo Seydler

Significant free float and international investors Annex

Shareholder structure

as at July 2015

	Non free float shareholders1)	23.3 %
Free float1)		76.7 %

¹⁾ Definition of German stock exchange for indices

Investor presentation I September 2015 I p. 45

• MKV Verwaltungs GmbH, Grünwald (D), 10.03%
• Joachim Loh, Haiger (D), 8.26%
• Treasury Shares, 4.97%
• Capital Income Builder, Los Angeles (USA), 5.6 %
• Carmignac Gestion S.A., Paris (F), 5.49%
• Union Investment Privatfonds GmbH, Frankfurt (D), 4.00%
• MainFirst SICAV, Senningerberg (LUX), 4.00%
• Invesco Limited, Hamilton (BMU), 3.30%
• Farringdon Netherlands BV, Amsterdam (NL), 3.01%
• Share ownership under reporting threshold of 3.00%

Recent equity research Annex

Date	Recommendation	Target price	Institute
08/13/2015	hold	52.00 EUR	Oddo Seydler Bank AG
08/12/2015	buy	60.00 EUR	Berenberg Bank
08/07/2015	buy	60.00 EUR	Bankhaus Lampe Research
07/06/2015	buy	60.00 EUR	Berenberg Bank
05/15/2015	hold	50.00 EUR	Oddo Seydler Bank AG
05/13/2015	buy	60.00 EUR	Berenberg Bank
05/08/2015	buy	56.00 EUR	GSC Research GmbH
04/30/2015	buy	60.00 EUR	Bankhaus Lampe Research
04/24/2015	buy	60.00 EUR	Bankhaus Lampe Research

This list contains the analyst reports available to us and has been drawn up to the best of our knowledge. Leifheit cannot give an assurance that the list represents a full overview of all analyst reports available on the market. Any forecasts, opinions, estimates, projections or predictions made by the analysts are theirs alone and do not represent the forecasts, opinions, estimates, projections or predictions of Leifheit or its management. Leifheit assumes no liability for the accuracy of the information therein. This list is provided for information only and is not a solicitation to buy, hold or sell shares.

Investor presentation I September 2015 I p. 46

Financial calendar Annex

11 November 2015 Quarterly financial report for the period ending 30 September 2015

25 November 2015 German Equity Forum

Dates 2015 Dates 2016

11 February 2016 Preliminary financial figures for the year 2015

31 March 2016 Annual financial report for the year 2015

12 May 2016 Quarterly financial report for the period ending 31 March 2016

25 May 2016 Annual General Meeting

11 August 2016

Quarterly financial report for the period ending 30 June 2016

10 November 2016

Quarterly financial report for the period ending 30 September 2016

Your contact Annex

Investor Relations

Petra Dombrowsky

Telephone: +49 2604 977-218 Email: ir@leifheit.com www.leifheit-group.com

Aktiengesellschaft

P.O. Box 11 65 56371 Nassau/Lahn, Germany www.leifheit-group.com

Investor presentation I September 2015 I p. 48