Leifheit AG

Investor Presentation • May 8, 2024

Investor Presentation Q1 2024

8 May 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.

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, IoT, 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 starts 2024 with higher profitability

Group turnover at 65.9 m€ in line with expectations, decline by 6.2% due to base effects in the discounter channel

Strong improvement in gross margin by 4.2 pp to 44.7% due to product mix effects and increased efficiency

Group EBIT increased by 1.1 m€ to 3.4 m€, mainly due to the improved gross margin

Free cash flow up from -3.4 m€ to 1.0 m€ due to improvement in working capital

Share buyback program resolved with a total volume of up to 8.5 m€

Forecast 2024 confirmed: Turnover and earnings growth

Upcoming launch of new Black Line products and promising innovation in the cleaning product category

New, holistic corporate strategy with focus on profitable long-term growth from June

Leifheit Group structure

46%

Consumer climate: recovery at a low level

GfK consumer climate index

May 2024, Germany

• The recovery in consumer sentiment in Germany continued in April.
• However, the sentiment is still at an extremely low level and there is still no strong momentum for domestic demand.

Group turnover in line with expectations – affected by base effects in the discounter channel

Group turnover by segment, region

in m€

	Group	Household	Wellbeing	Private Label
Turnover in m€	65.9	55.4	3.9	6.6
Growth Q1 '24 vs. Q1 '23	-6.2%	-5.2%	-7.8%	-13.5%

	Germany	Central Europe	Eastern Europe	Rest of world
Turnover in m€	24.3	30.5	9.3	1.8
Growth Q1 '24 vs. Q1 '23	-21.2%	0.8%	15.7%	57.3%

• Group turnover down as expected due to missing discounter promotions, especially in Germany
• Expansion of distribution in important European core markets and growth in the e-commerce channel partially compensated for this

Highlights Q1 2024

Continuing strong demand for Leifheit Pegasus standing dryers

• Premium dryer Pegasus 150 Solid Slim Black meets the current color trend and is aimed at a target group that places high demands on design and aesthetics
• Our marketing campaigns as well as investments in lean and efficient production contribute to this success story

Highlights Q1 2024

40 years of Linomatic rotary dryer – 26% turnover growth in Q1 2024 vs. Q1 2023

• Successful international promotions to mark the 40th anniversary of the Linomatic rotary dryer

Highlights Q1 2024

Continuing support of the successful campaign with focus on Profi Cleaning system resulted in Turnover growth of ~15 % for the product range in Q1

• Market shares Mechanical Cleaning Germany:
  • Fastest growing brand with +6.6% in a declining market in 2023
  • Strongest market share gains in core categories of Flat mops and Round mops

Strong E-commerce growth of +11.6% in Q1 2024

Distribution channels

Turnover Q1 2024 in % (previous year's figures)

• E-commerce one of the fastest growing channel with +11.6% in Q1 2024
• Expanding our D2C capabilities to enable profitable growth in key markets in Western Europe
• Distribution gains in DIY
• General reduction of non-food promotions in the discounter channel

Q1 2024 Financials

Financials Q1 2024

Group turnover Q1 2024 in line with expectations

Group turnover development by quarters

in m€

• Base effects in the discounter channel leads to yoy turnover decline
• Expansion of distribution in European core markets and growth in the e-commerce channel partially compensated for this

in m€

Turnover decline across all segments in Q1 2024 as expected, but on track for 2024 turnover forecast

Group turnover by segment

• Household segment down by -5.2%, subdued consumer sentiment and missing discounter promotions burdened business in the cleaning and laundry care categories
• Wellbeing segment down by -7.8% against the background of product range adjustments
• Private Label segment down by -13.5%, mainly due to lower sales partner promotions. As a result, turnover of Birambeau kitchen products and Herby laundry care products declined

Germany strongly affected by missing discounter promotions/ all other sales regions with positive development

Group turnover by region Q1 2024 in %

• Germany down by -21.2%, mainly due to missing discounter promotions
• Central Europe up by +0.8%, due to distribution expansion and positive development of ecommerce business in important European core markets
• Eastern Europe strongly up by +15.7%, several countries with double-digit growth rates and thanks to increased demand for products of the Leifheit brand

EBIT increased due to improved gross margin, despite rising sea freight costs

		Q1 2023	Q1 2024	∆
Group turnover	m€	70.3	65.9	-6.2%
Gross margin	%	40.5	44.7	4.2 pps
Foreign currency result	m€	0.4	0.3	-23.1%
EBIT	m€	2.3	3.4	45.5%
EBIT margin	%	3.3	5.2	1.9 pps
Earnings before taxes (EBT)	m€	1.9	3.1	65.5%
Net result for the period	m€	1.3	2.2	72.8%
EPS	€	0.13	0.23	76.9%

• Higher margins due to positive mix effects due to focus on products manufactured in Europe
• In addition, productivity increases lead to positive cost effects
• Significant increase in freight costs since the beginning of the year

Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024

1.8

1.3

2.7 2.3

2.9

0

2

4

6

8

10

12

2.2

3.4

Steadily increasing gross margins

• Improvement in gross margin to 44.7% in Q1 2024 (Q1 2023: 40.5%) because of
  • positive product mix effects due to the focus on effective campaigns for 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
  • rising sea freight costs due to red sea crisis

Declines in procurement costs in 2023 vs. peak in 2022, but raw material and energy prices remain at high levels

• Average price increase of main raw materials appr. +43% vs. 2020* (+2% vs. previous month)
• Some raw material costs (esp. PP and Cotton) with upward trend
• Price level of 2019/2020 will not be reached in the short term
• Major pricing impact: increased sea freight rates from Asia due to red sea crisis

^*Calculation basis: average price 2020 vs. price as of March 2024

Positive free cash flow of 1.3 m€ after -3.4 m€ in Q1 2023

in m€	Q1 2023	Q1 2024	∆
Cash flow from operating activities	-2.1	1.4	3.5
Cash flow from investment activities	-1.3	-0.4	0.9
Cash flow from financing activities	-0.1	-0.2	-0.1
Free cash flow1	-3.4	1.0	4.4
in m€	31/03/2023	31/03/2024	∆
Cash and cash equivalents at the end of reporting period	32.8	42.1	9.3
Financial liabilities	-	-	-

• Free cash flow up by 4.4 m€ to 1.0 m€ due to improvement in working capital
• Cash outflow from financing activities was almost stable at -0.2 m€ (Q1 2023: -0.1 m€)
• With Group liquidity totaling 42.1 m€ and without any liabilities to banks, the company continues to have a solid liquidity position

¹Cash 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.

Increase in Group liquidity

• Free cash flow increased in Q1 2024 to 1.0 m€ (Q1 2023: -3.4 m€)
• Positive effects from the stronger increase in liabilities, the lower increase in receivables, the better period results, and the lower investments outweigh the stronger increase in inventories

Committed to shareholder returns

¹ Based on the particular closing price at year-end ²Subject to approval at the Annual General Meeting Bonus/special dividend Dividend

Share Buy-back program to enable shareholders to participate on good liquidity situation

• Management Board resolved share buy-back program with a total volume of up to 8.5 m€
• Expected term from approx. 13 May 2024 until approx. 11 December 2024
• Shares will be acquired via XETRA trading on the Frankfurt Stock Exchange and via Tradegate Exchange
• The program will be carried out by an independent credit institute, that will decide on the timing of the acquisition of the shares independently and uninfluenced by Leifheit AG

2024: Revision of our corporate strategy, focusing on growth and cost efficiency to position the Group for sustainable success

Future Growth	• Strengthening our brand positioning • Focus on core segments • Strengthen our Innovation pipeline with bigger, better innovation • Stronger internationalization, initially in Europe • Leverage our e-commerce capabilities to maximize our position
Cost Efficiency	• Value optimization with revenue growth management • Realize cost efficiencies with Lean Management in Operations • Digitalize business processes
Corporate Culture	• Create a culture of entrepreneurship, strong cross-organizational cooperation and modern leadership
Sustainability	• Holistic responsibility for people, society and the environment with the highest level of corporate integrity

Celebrating 65th anniversary

• We celebrate 65 years of "German brand quality" and 40 years of Rotary dryer Linomatic - Made in Germany brand quality
• Further anchor the origin and longtime values of Leifheit in the minds of consumers at the POS
• Additional 1-year warranty on all items

Innovation – Expansion of successful black line

• Proven quality and stability meet stylish design
• Black Pegasus and tower dryers, as well as Air Board and Classic ironing Boards complement each other perfectly

Innovation – On top volumes through Black Line ironing boards

New Product innovation cleaning is coming up

Resilience: Managing strained supply chains in production and logistics

• Share of Group turnover with products from in-house production up by +4pp in 2023 to 64%
• Further increased the share of European suppliers to 73% (2022: 72%) to reduce risks and dependencies on procurement regions with long delivery times and strained transport routes
• Flexible and efficient factories
  • Modular concepts for core products, development of platforms and standardization of production lines
  • Learning factory: continuous improvement
  • Expansion of the production site in Blatná, CZ
• Logistics excellence and improvement of e-commerce capabilities to enable growth

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 10 m€ to 12 m€
Free Cashflow	about 10 m€

• Continued weak economy and subdued consumer sentiment
• Significant increase in sea freight costs since beginning 2024 with negative impact on earnings in FY 2024

Annex

Leifheit is financially solid and pays reliable dividends to shareholders

Strong financial structure in m€

Solid long-term stock performance

Majority of employees based in Europe

Leifheit makes top quality household products

Profi Floor Wiper 4.6 stars

Profi XL Set 4.5 stars

Pegasus 150 black 4.7 stars

Linomatic 600 Deluxe 4.7 stars

Our European production and logistic footprint ensures efficient and reliable supply to customers

Annex

New central European logistics hub

• New central European logistics hub at the logistics site in Chablis, France, which was previously operated exclusively by our subsidiary Birambeau
• Distribution across three logistics locations brings cost advantages, shortens transport routes to our customers and simultaneously reduces CO² emissions
• Expanding our D2C capabilities to enable profitable growth in key markets in Western Europe
• New logistics platform in operation since October 2023

Annex

Distribution in all relevant distribution channels

Top 10 Customers account for 50% of Leifheit's turnover Blue Chip client base Distribution channels

Long-term financial overview

ா I	п

		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

-1

Long-term financial overview

		2019	2020	2021	2022	2023
Per share
Net result for the period, EPS2	€	0.61	1.32	1.49	0.13	0.34
Free cash flow	€	1.06	-0.57	1.00	0.92	1.27
Dividend Special dividend	€ €	0.55 --	1.05 --	1.05 --	0.70 --	0.952 0.102
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 total1	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

¹ Not including repurchased treasury shares

² Dividend proposal

Soehnle awards (selection)

Body analysis scales Shape Sense Connect 100 + 200 Blood pressure monitors Systo Monitor 200 + 300

Leifheit – 65 years of passion for housework

European competitors by category

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

Annex

Significant free float and international investors

Shareholder structure

¹ Definition of German stock exchange for indices 2

Including shareholdings of the management board

• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Ruthild Loh, Haiger (GER), 8.26%
• Leifheit AG Nassau (GER), treasury shares, 4.85%
• Employee shares subject to a lock-up period 0.03%
• Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 15.42%
• Gerlin Participaties Coöperatief U.A., Maarsbergen (NL), 8.53%
• MainFirst SICAV, Senningerberg (LUX), 5.02%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52%
• Voting rights under notification threshold 44.34%

Annex

1 ESG: Strategic sustainability goals Focus on climate neutrality till 2030

	Analyse our emissions		Objectives until 2030		Emission reduction measures until 2030		Compensate
• •	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 CO emissions 2 of employees' drive Products: long-lasting and high quality products with long life cycle, increase recycled share in products, packaging and displays Distribution: lean production, reduce transport routes	•	Compensate non 1 avoidable emissions by means of certified projects for climate protection	Read more sustainability e.g. electricity Scope 3: indirect emissions in the value chain, (upstream + downstream)	at our 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,
1 Scope 1 and scope	2 emissions				and supply logistics

Our ESG Principles

1

Read more at our sustainability report 2023

www.leifheit-group.com/en/investorrelations/reports-and-presentations/

¹Scope 1 and scope 2 emissions

Annex

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.

• For example, 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 Contact

13-15 May 2024 Equity Forum – Spring Conference, Frankfurt

29 May 2024 Annual General Meeting

8 August 2024 Financial report for the period ending 30 June 2024

12 November 2024 Quarterly statement for the period ending 30 September 2024

25-27 November 2024 Deutsche Börse – German Equity Forum 2024, Frankfurt

Corporate Communications / Investor Relations
Phone:	+49 2604 977-218
E-Mail:	ir@leifheit.com

www.leifheit-group.com

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau