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Leifheit AG
Investor Presentation • Nov 12, 2024
261_ip_2024-11-12_f33bcf93-6695-422b-8333-bee3cd30f58e.pdf
Investor Presentation
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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.
Executive Summary: Leifheit records higher profitability in 9M 2024
New, holistic corporate strategy focusing on profitable growth and cost efficiency
Group turnover at $200.8 \mathrm{~m} €$ in line with expectations
Significant catch-up effects with $6.3 \%$ growth in Q3
Strong improvement in gross margin by 2.9 pp to $44.3 \%$
Group EBIT significantly up from $5.0 \mathrm{~m} €$ to $10.3 \mathrm{~m} €$
Free cash flow increased by $1.3 \mathrm{~m} €$ to $14.3 \mathrm{~m} €$
Forecast 2024 confirmed
Product innovations expected to provide positive impetus in Q4
Share buyback program ongoing
Consumer climate: slight recovery at a low level
Consumer confidence index (CCI)
September 2024, EU-27
Amplitude adjusted, Long-term average $=100$
Source: https://www.oecd.org/en/data/indicators/consumer-confidence-index-coi.html
GfK consumer climate index
October 2024, Germany
Source: GfK Konsumklima powered by NIM / co-funded by European Commission
- Both indicators show slight recovery in consumer sentiment.
- However, there is still no strong momentum for demand in the German domestic market.
Group turnover in line with expectations -catch-up effects recorded in third quarter
Group turnover by segment, region
in $\mathrm{m} €$
| Group | Housshold | Wellbeing | Private Label | |
|---|---|---|---|---|
| Turnover in $\mathrm{m} €$ |
200.8 | 166.2 | 11.0 | 23.6 |
| Growth 9M '24 vs. 9M '23 |
$0.4 \%$ | $0.3 \%$ | $-10.5 \%$ | $7.0 \%$ |
| Germany | Central Europe |
Eastern Europe |
Rest of world |
|
|---|---|---|---|---|
| Turnover in $\mathrm{m} €$ |
77.3 | 91.0 | 27.9 | 4.6 |
| Growth 9M '24 vs. 9M '23 |
$-8.7 \%$ | $5.2 \%$ | $12.7 \%$ | $11.5 \%$ |
- Q1 was negatively impacted by low discounter promotions
- Strong Q3 confirms positive catch-up effects due to focus on excellence in execution, advertising activities in the core categories of mechanical cleaning and laundry care and distribution expansion in important European core markets
Strong E-commerce growth of $+6.6 \%$ in 9M 2024
Distribution channels
Turnover 9M 2024 in \% (previous year's figures)
- E-commerce again one of the fastest growing channel with $+6.6 \%$ in 9M 2024
- Expanding our D2C capabilities to enable profitable growth in key markets in Western Europe
- Growth of 8.5\% in DIY channel in 9M 2024 due to distribution gains
- Less of promotions in the discounter channel
- Retail/Wholesale, Department stores:
An important customer in the Netherlands faces financial difficulties. We are in close contact with the management.
9M 2024 Financials
Group turnover 9M 2024 in line with expectations
Group turnover development by quarters
EBIT increased due to improved gross margin, despite strategy-related one-off effects from organizational changes
| 9M 2023 | 9M 2024 | $\Delta$ | ||
|---|---|---|---|---|
| Group turnover | $m €$ | 200.0 | 200.8 | $0.4 \%$ |
| Gross margin | \% | 41.4 | 44.3 | 2.9 pps |
| Foreign currency result | $m €$ | $-0.4$ | 0.3 | $>100.0 \%$ |
| EBIT | $m €$ | 5.0 | 10.3 | $>100.0 \%$ |
| EBIT margin | \% | 2.5 | 5.1 | 2.6 pps |
| Earnings before taxes (EBT) | $m €$ | 3.8 | 9.7 | $>100.0 \%$ |
| Net result for the period | $m €$ | 2.6 | 6.8 | $>100.0 \%$ |
| EPS | € | 0.28 | 0.72 | $>100.0 \%$ |
Group earnings development
9M 2020 - 9M 2024 in m€
Slight easing in sea freight rates in Q3 but still on a higher level
Global container freight rate index
in US dollars per 40-foot container (source: statista)
Gross margin improvement
- Improvement in gross margin to 44.3\% in 9M 2024 (9M 2023: 41.4\%) because of
- positive product mix effects due to the focus on profitable products
- increasing productivity and efficiency in production and logistics
- slight decline in procurement and energy costs, although the costs remain at a high level
- Rise in container freight costs due to the crisis in the Red Sea led to pressure on gross margin with a time in Q3, but gross margin improvement will be seen again in Q4
Raw Material price development
- Average price increase of main raw materials appr. $+36 \%$ vs. $2020^{\circ}$
( $-\mathbf{1 \%}$ vs. previous quarter) - Some raw material costs (esp. Packaging and Aluminium) with upward trend, price level of 2019/20 will be not reached in the short term
*Calculation basis: average price 2020 vs. price as of Sept. 2024
| In m€ | 9M 2023 | 9M 2024 | $\Delta$ |
|---|---|---|---|
| Cash flow from operating activities | 17.1 | 18.9 | 1.8 |
| Cash flow from investment activities | $-4.1$ | $-4.6$ | $-0.5$ |
| Cash flow from financing activities | $-7.0$ | $-12.8$ | $-5.8$ |
| Free cash flow ${ }^{1}$ | 13.0 | 14.3 | 1.3 |
| In m€ | 30/09/2023 | 30/09/2024 | $\Delta$ |
| Cash and cash equivalents at the end of reporting period | 42.2 | 42.8 | 0.6 |
| Financial liabilities | - | - | - |
- Free cash flow up by $1.3 \mathrm{~m} €$ due to improvement of net result for the period and working capital
- Cash outflow from financing activities includes payment of $10.0 \mathrm{~m} €$ dividend (2023: 6.7 m€) and share buy back program ( 2.4 m€ )
- With Group liquidity totaling $42.8 \mathrm{~m} €$ and without any liabilities to banks, the company continues to have a solid liquidity position
[^0]
[^0]: ${ }^{1}$ Cash flow from operating activities and from investment activities, adjusted for incoming and outgoing payments in financial assets and, if existing, from acquisition and divestiture of business divisions.
Leifheit has solid liquidity to implement the new corporate strategy
Group liquidity
$31 / 12 / 2023$ vs. 30/09/2024 in $\mathrm{m} €$
- Free cash flow increased in 9M 2024 to 14.3 m€ (9M 2024: 13.0 m€)
- Positive effects from the reduction in inventories, which contributed to an improvement in working capital
- Share buyback program with a total volume of up to 8.5 m€ until probably mid-December
- Total volume of shares purchased from 15 May 2024 up to 8 November 2024 amounts to 165,255 shares 2.9 m€)
Strategy Update
Our ideas to make your life easier.
OUR VISION
We are the European branded leader and specialist in mechanical cleaning and drying - with highest consumer satisfaction, an entrepreneurial culture and a sustainability mindset.
Holistic corporate strategy with focus on profitable growth and cost efficiency
Our growth drivers:
- Modern brand positioning for the Leifheit brand based on deep consumer insights.
- Concentration on our focus categories of mechanical cleaning and drying with high growth potential
- Focused portfolio approach to strengthen our international sales markets and export business.
- Strengthening our ability to innovate with a deep understanding of consumers and a coordinated innovation process
- Accelerated expanion of e-commerce.
Our strategy is based on trust, courage, integrity and ambition. These core values describe the values and behaviors to which we act.
Our Efficiency drivers:
- Focusing the company on drying and mechanical cleaning; clear strategies for Kitchen, Soehnle, Birambeau and Herby for sustainable success.
- Transformation and digitalization of processes along the entire value chain.
- Value optimization through cost, process and product range optimization for improved profitability.
- Lean, efficient organizational structures with a defined form of international collaboration, talent identification and a synchronized supply chain.
- Leveraging potential through integrated communication at the point of sale online and stationary.
Potential in Core - Mechanical cleaning \& drying
Market shares mechanical cleaning \& drying
Potential in Europe outside Germany
Leifheit Group turnover 2023
Expand successful model in core markets
Defined country clusters with growth and profit targets
E-commerce entry model
Strong focus on Innovation to drive
growth and profitability
Successful Black Line 2023/2024
New E-commerce \& digital model as growth accelerator and success model
- Efficient logistic from new D2C logistic hub
- New distribution via additional marketplaces
- Strong investment into Performance Marketing
D2C Ecommerce in France increased by 270%
vs. previous year period
Value optimization: Steps towards lean and efficient production and logistics have been taken
Actions:
- Implementation of synchronic production cells and production lines
- Introduction of D2C dedicated assortment
Productivity production site*
Productivity Logistics D2C**
2018- H1 2024
■H1 $\equiv \mathrm{H}_{2}$
- Good products per line, worker and hour
** Parcels per worker and hour
Efficient organization: Steps towards lean and efficient organizational structures have been taken
New sales and marketing organization
- Follows the strategy with a view to the focus markets and e-commerce growth drivers:
- Global Sales Function
- Global E-Commerce Function
- New Global S\&CM to maximize POS
- New Global Marketing organization
- New organization generates efficiencies and cost savings at the same time
Investment Highlights
Strong vision:
become European branded leader and specialist in mechanical cleaning and drying
Lean and efficient production and logistics
to support profitability and cash
Strong Brand
with big potential for geographical expansion
Focuss strategy
for sustainable growth with focus on core competences, Europe and e-com | digital acceleration
Strong financial base
to support future investments, growth and capital returns
Outlook 2024
2024 forecast confirmed -
still challenging market environment ahead
| Forecast 2024 | |
|---|---|
| Group turnover | slightly above the previous year |
| Turnover Household | slightly above the previous year |
| Turnover Wellbeing | slightly below the previous year |
| Turnover Private Label | slightly above the previous year |
| Group EBIT | in a corridor of $11 \mathrm{~m} €$ to $13 \mathrm{~m} €$ (previous: corridor of $10 \mathrm{~m} €$ to $12 \mathrm{~m} €$ ) |
| Free Cashflow | about $12 \mathrm{~m} €$ (previous: about $10 \mathrm{~m} €$ ) |
- Continued weak economy and subdued consumer sentiment
Your questions, please.
Annex
Experienced Management Board
Previous experience
- Brings more than 25 years of international experience in leading positions in marketing, sales and management
- Formerly responsible for the global Health Care Business at Beiersdorf AG
Core competencies
- General Management, brand building \& implementation of change strategies
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, loT, Industry 4.0, implementation of lean production systems, agile "Scrum" methods
Previous experience
- Responsible for Controlling, IT/Business processes and internal sales services as Vice president finance at Leifheit AG
- Years of experience as Head of Controlling at Leifheit AG
Core competencies
- IT, Finance \& Controlling
Executive Summary: Leifheit records higher profitability in 9M 2024
New, holistic corporate strategy to focus on core categories mechanical cleaning \& drying and Europe
Focus on selected initiatives for profitable growth and cost efficiency
Group turnover at $200.8 \mathrm{~m} €$ in line with expectations
Significant catch-up effects with $6.3 \%$ growth in Q3
Strong improvement in gross margin by 2.9 pp to $44.3 \%$ due to product mix effects and increased efficiency
Group EBIT significantly up to $10.3 \mathrm{~m} €$, due to improved gross margin, despite one-off effects for strategyrelated organizational adjustments in sales and marketing
Free cash flow increased by $1.3 \mathrm{~m} €$ to $14.3 \mathrm{~m} €$ due to improvement in working capital
Forecast 2024 confirmed for Group turnover, EBIT and Free Cashflow
Product innovations expected to provide positive impetus in the fourth quarter of 2024
Share buyback program ongoing
Leifheit is financially solid and pays reliable dividends to shareholders
Central and Eastern Europe with remarkable turnover growth, Germany still influenced by shifts in sales
Slight turnover growth across segments in 9M 2024 as expected, but on track for 2024 turnover forecast
Leifheit Group structure
Committed to shareholder returns
Increased efficiency and productivity led to reduction in number of employees
Distribution in all relevant distribution channels
Blue Chip client base
Distribution channels
Turnover 9M 2024 in \% (previous year's figures)
Long-term financial overview
| 2019 | 2020 | 2021 | 2022 | 2023 | ||
|---|---|---|---|---|---|---|
| Group turnover | $m €$ | 234.0 | 271.6 | 288.3 | 251.5 | 258.3 |
| Profitability | ||||||
| Gross margin | $\%$ | 43.1 | 45.0 | 42.3 | 38.7 | 42.1 |
| Cash flow from operating activities | $m €$ | 15.9 | 4.0 | 16.4 | 14.0 | 20.8 |
| Free cash flow | $m €$ | 10.1 | $-5.5$ | 9.6 | 8.8 | 12.1 |
| EBIT | $m €$ | 9.9 | 18.8 | 20.1 | 2.8 | 6.0 |
| EBIT margin | $\%$ | 4.2 | 6.9 | 7.0 | 1.1 | 2.3 |
| EBT | $m €$ | 8.5 | 17.7 | 19.3 | 2.3 | 4.7 |
| Net result for the period | $m €$ | 5.8 | 12.5 | 14.2 | 1.2 | 3.2 |
| ROCE | $\%$ | 8.2 | 14.1 | 13.8 | 1.8 | 4.5 |
Long-term financial overview
| 2019 | 2020 | 2021 | 2022 | 2023 | ||
|---|---|---|---|---|---|---|
| Per share | ||||||
| Net result for the period, EPS ${ }^{2}$ | € | 0.61 | 1.32 | 1.49 | 0.13 | 0.34 |
| Free cash flow | € | 1.06 | $-0.57$ | 1.00 | 0.92 | 1.27 |
| Dividend | € | 0.55 | 1.05 | 1.05 | 0.70 | $0.95^{2}$ |
| Special dividend | € | -- | -- | -- | -- | $0.10^{2}$ |
| Investments | $m €$ | 6.0 | 9.6 | 7.3 | 5.4 | 8.9 |
| Depreciation | $m €$ | 8.2 | 8.5 | 7.8 | 7.5 | 9.0 |
| 31/12/2019 | 31/12/2020 | 31/12/2021 | 31/12/2022 | 31/12/2023 | ||
| Employees | No. | 1,106 | 1,098 | 1,080 | 1,063 | 1,020 |
| Balance sheet total ${ }^{1}$ | $m €$ | 214.6 | 230.0 | 238.8 | 216.1 | 203.6 |
| Equity | $m €$ | 96.2 | 100.4 | 111.3 | 112.5 | 103.8 |
| Equity ratio | $\%$ | 44.8 | 43.7 | 46.6 | 52.0 | 51.0 |
| Liquidity | $m €$ | 50.3 | 38.8 | 38.1 | 36.3 | 41.3 |
[^0]
[^0]: ${ }^{1}$ Not including repurchased treasury shares
${ }^{2}$ Dividend proposal
Leifheit makes top quality household products
Leifheit rückenschonender
Bodenwischer Profi XL micro Duo mit Aluminiumstiel 140 cm , Wischmopp zum Lösen mit Fußklick, mit Bezug...
$\star \star \star \star \star$ ๑ ๑ 1.728
Profi XL Set
4.5 stars
Leifheit Set Wischtuchpresse Profi XL mit Bodenwischer 146 cm und Rollen, 1x Mikrofaser Bezug für alle...
$\star \star \star \star \star$ ๑ 10.402
Pegasus 150 black 4.7 stars
Leifheit Standtrockner Pegasus 150 Solid Black Edition, standfester Wäscheständer mit Flügeln auch für lange...
$\star \star \star \star \star$ ๑ 11.534
Linomatic 600 Deluxe
4.7 stars
Leifheit Wäscheschirm Linomatic 600 Deluxe Cover mit Leineneinzug für saubere Wäsche, Wäschespinne für die...
$\star \star \star \star \star$ ๑ 8.836
Our European production and logistic footprint ensures efficient and reliable supply to customers
Leifheit awards (selection)
Soehnle awards (selection)
Kitchen Scales
Page Profi + Page Profi 300
Personal Scales Style Sense
Personal Scales Style Sense Bamboo Magic
Bod pressure monitors
Systo Monitor 200 + 300
Page Aqua Proof Kitchen Scale
Leifheit - 65 years of passion for housework
European competitors by category
Cleaning
| Spontex | |
|---|---|
| Tonkita | Swiffer |
| Kärcher |
Rival
Vileda
| Bra | ||
|---|---|---|
| Vileda |
| Vileda | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: | :--: |
Significant free float and international investors
Shareholder structure
- Non free float shareholders ${ }^{1}$ 24.73\%
- Free float ${ }^{1,2} 75.27 \%$
${ }^{1}$ Definition of German stock exchange for indices
${ }^{2}$ Including shareholdings of the management board
ESG: Strategic sustainability goals
Focus on climate neutrality till 2030
Analyse our emissions
- Climate balance for our most important sites in scope 1 and scope 2 established in 2022
- Yearly climate balance in the future to measure progress
- Substantially reduce the emissions of direct greenhouse gases (scope 1 emissions)
- $100 \%$ renewable energies with a electricity mix (scope 2 emissions)
- Substantially reduce the emissions of indirect emissions (scope 3)
- Energy:
increase efficiency, savings and share of renewable energies - Mobility:
reduce of vehicle fleet emissions at our sites, reduce $\mathrm{CO}_{2}$ emissions of employees' drive - Products:
long-lasting and highquality products with long life cycle, increase recycled share in products, packaging and displays - Distribution:
lean production, reduce transport routes and supply logistics - Compensate nonavoidable emissions by means of certified projects for climate protection
Read more at our sustainability report 2023
www.leifheit-group.com/en/investor-relations/reports-and-presentations/
Scope 1: direct emissions from the company's owned or controlled resources e.g. gas, fuel, refrigerants Scope 2: indirect emissions from purchased energy, e.g. electricity
Scope 3: indirect emissions in the value chain, (upstream + downstream)
Our ESG Principles
IEEEPSEST
What sustainability means to us:
Responsible actions toward the environment and people, corporate integrity and durable, high-quality products
Open, positive corporate culture driven by performance and teamwork
HR strategy geared towards employer attractiveness
Focus on employee safety and health
Diversity and offer equality of opportunity
Fair and competitive pay, training and continuing education
Strict social standards in the supply chain, laid down in our Supplier Code of Conduct
Giving back to society at our locations
Read more at our sustainability report 2023
www.leifheit-group.com/en/investor-relations/reports-and-presentations/
Leifheit is frequently top company in home appliances and household goods categories
We are pleased that our efforts towards sustainability are being noticed and rewarded by consumers.
- We were awarded the "Germany's Best Sustainability" seal once again in 2023 for the third year running. The study was conducted by the IMWF Institut für Management- und Wirtschaftsforschung with research support from the Hamburg Institute of International Economics (HWWI) on behalf of Focus Money and Deutschland Test. The study analyses social listening data for some 19,600 companies and brands. It examines aspects of ecological, economic and social sustainability. The results show who is committed to sustainability from the consumer's point of view.
- As in the two previous years, the FAZ-Institut also once again awarded Leifheit the "Excellent Sustainability" certificate. The study analysed social listening data for some 20,000 companies and brands in a similar manner.
- In addition, Leifheit was awarded the "Maximum Trust 2023" award once again, achieving the highest ranking in the household products category. The study was conducted by the IMWF Institut für Managementund Wirtschaftsforschung on behalf of Focus Money and Deutschland Test.
- In the "Sustainability Champions" study conducted in cooperation with the daily newspaper Die Welt, the Leifheit and Soehnle brands were rated "very sustainable" in the "Household goods/kitchen utensils" sector. The result is based on a consumer survey in which a total of 1,291 companies from 78 sectors were assessed.
Financial calendar and contact
Financial calendar 2024 / 2025
25 - 27 November 2024
Deutsche Börse - German Equity Forum 2024, Frankfurt
9 April 2025
Annual Reports 2024
Analyst Conference
7 May 2025
Quarterly statement for the period ending 31 März 2025
28 May 2025
Annual General Meeting
7 August 2025
Half-year report 2025
6 November 2025
Quarterly statement for the period ending 30 September 2025
Contact
Corporate Communications / Investor Relations
Phone: $\quad+492604977-218$
E-Mail: [email protected]
www.leifheit-group.com
LEIPHETT
Aktiengesellschaft
Postfach 1165
D-56377 Nassau