Leifheit AG

Investor Presentation • Nov 12, 2024

Investor Presentation

9M 2024
12 November 2024

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

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...
$\star \star \star \star \star$ ａ ｃ 1.728

Profi XL Set
4.5 stars

Leifheit Set Wischtuchpresse Profi XL mit Bodenwischer 146 cm und Rollen, 1x Mikrofaser Bezug für alle...
$\star \star \star \star$ ａ ｃ 10.402

Pegasus 150 black 4.7 stars

Leifheit Standtrockner Pegasus 150 Solid Black Edition, standfester Wäscheständer mit Flügeln auch für lange...
$\star \star \star \star$ ａ ｃ 11.534

Linomatic 600 Deluxe 4.7 stars

Leifheit Wäscheschirm Linomatic 600 Deluxe Cover mit Leineneinzug für saubere Wäsche, Wäschespinne für die...
$\star \star \star \star$ ａ ｃ 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

Body analysis scales
Shape Sense Connect $100+200$

Page Aqua Proof Kitchen Scale

Leifheit - 65 years of passion for housework

European competitors by category

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: ir@leifheit.com
www.leifheit-group.com

LEIPHETT

Aktiengesellschaft
Postfach 1165
D-56377 Nassau