Leifheit AG

Investor Presentation • Mar 27, 2024

Investor Presentation FY 2023

27 March 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 FY 2023

Group turnover up by 2.7% to 258 m€ – despite difficult economic conditions and weak consumption

Significant improvement in gross margin by 3.4 pp to 42.1%

Group EBIT significantly increased by 3.2 m€ to 6.0 m€ despite one-off compensation payment and other expenses totaling m€ 2.7 in connection with changes to the Board of Management

Free cash flow up by 3.3 m€ to 12.1 m€ due to improvement in working capital

Dividend proposal for 2023: 0,95 € + special dividend 0,10 €

Forecast 2024: turnover and earnings growth

Leifheit Group structure

Consumer climate: stabilisation at a low level

• Consumer demand in Europe is expected to remain weak, especially for non-food household products

Group turnover up 2.7 % in FY 2023 despite continuing difficult market environment

Group turnover by segment, region

in m€

	Group	Household	Wellbeing	Private Label
Turnover in m€	258.3	211.9	16.4	30.0
Growth '23 vs. '22	2.7%	3.8%	1,5%	-3,9%

	Germany	Central Europe	Eastern Europe	Rest of world
Turnover in m€	103.7	114.4	34.9	5.3
Growth '23 vs. '22	4.9%	2.9%	2.1%	-27.4%

• Group turnover up 2.7 % in FY 2023 despite continuing difficult market environment
• Household and Wellbeing segments above previous year's level, Private Label down slightly

Success story 2023

New record year for Leifheit Pegasus standing dryers

• Part of the Leifheit product family for 20 years
• New record number of 1.8 million Pegasus dryers sold in 2023
• Introduction of the premium model 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 contributed to this success story and led to growth of 4.6% in the laundry care category

Success story 2023

Success story 2023: Effective campaign with focus on Profi Cleaning system

• Successful Profi campaign including TV commercial led to increased consumer interest
• The campaign significantly contributed to the +3.9% growth in the cleaning category
• Market shares mechanical Cleaning Germany:
  • Fastest growing brand with +6,6% in a declining market
  • Strongest market share gains in core categories of Flat mops and cleaning mops

E-commerce growth +12.6% in 2023

• E-commerce fastest growing channel with +12,6% in 2023 consolidating E-commerce as the second strongest sales channel
• Expanding our D2C capabilities to enable profitable growth in key markets in Western Europe

Success story 2023

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

FY 2023 Financials

Financials FY 2023

Group turnover up 2.7 % in FY 2023 despite continuing difficult market environment

Group turnover development by quarters

in m€

• Successful initiatives deliver solid results despite the challenging economic environment and an unchanged subdued consumer sentiment

Household and Wellbeing segments above previous year's level, Private Label down slightly

• Household segment up by +3.8% due to successful advertising campaigns
• Wellbeing segment up by +1.5% after significant decline in previous year
• Private Label segment down by -3.9%, Birambeau's kitchen products and Herby's laundry care products with declines

Back on growth track despite continuing inflation and difficult market environment

99 104 ^{111 114 34 35} 7 5 0 50 100 150 200 250 300 2022 2023 Germany Central Europe Eastern Europe Rest of World Group turnover by region 2022 – 2023 in m€ 251 258

Group turnover by region

FY 2023

• Germany up by +4.9%

Despite weak consumer climate, turnover growth due to successful advertising campaigns and distribution expansion

• Central Europe up by +2.9%

Significant double-digit sales growth in the Netherlands, due to successful advertising and additional listings, lower volumes in discount promotions in France

• Eastern Europe up by +2.1%

Romania with double-digit growth rates, back on growth path in the Czech Republic, declines in Poland

EBIT increased due to improved gross margin, despite negative one-off effects caused by changes in Management Board

		FY 2022	FY 2023	∆
Group turnover	m€	251.5	258.3	2.7%
Gross margin	%	38.7	42.1	3.4 pps
Foreign currency result	m€	2.9	-0.6	>-100%
EBIT	m€	2.8	6.0	>100%
EBIT margin	%	1.1	2.3	1.2 pps
Earnings before taxes (EBT)	m€	2.3	4.7	>100%
Net result for the period	m€	1.2	3.2	>100%
EPS	€	0.13	0.34	>100%

• One-off effects of 2.7 m€ caused by changes in the Management Board burdened administrative costs
• Despite this, EBIT increased due to successful advertising campaigns for profitable products and gross margin improvement
• Foreign currency result down due to realized exchange rate gains and losses, foreign currency valuations of balance sheet items and change in fair value of forward exchange contracts

Group earnings development

FY 2019 – FY 2023 in m€

Steadily increasing gross margins

• Improvement in gross margin to 42.1% in FY 2023 (FY 2022: 38.7%) because of
  • sales price adjustments
  • 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

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. +41% vs. 2020* (+5% vs. previous month)
• Some raw material costs (esp. PP and Cotton) already with upward trend
• Price level of 2019/2020 will not be reached in the short term
• Major pricing impact: increased freight rates from Asia due to red sea crisis

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

Free cash flow increased by 3.3 m€ from 8.8 m€ in FY 2022 to 12.1 m€ in FY 2023

in m€	FY 2022	FY 2023	∆
Cash flow from operating activities	14.0	20.8	6.8
Cash flow from investment activities	-5.3	-8.7	-3.4
Cash flow from financing activities	-10.6	-7.1	3.5
Free cash flow1	8.8	12.1	3.3
in m€	31/12/2022	31/12/2023	∆
Cash and cash equivalents at the end of reporting period	36.3	41.3	5.0
Financial liabilities	-	-	-

• Free cash flow significantly improved by 3.3 m€ in FY 2023 as a result of improved working capital management
• Lower cash outflow from financing activities mainly due to the dividend payment of 6.7 m€ (2022: 10.0 m€)
• With Group liquidity totaling 41.3 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.

Group liquidity increased by 5 m€ from 36.3 m€ in 2022 to 41.3 m€ in 2023 Financials FY 2023

• Improvement in working capital, especially the reduction in inventories
• In addition, investment measures were postponed from Q4 2023 to Q1 2024
• Free cash flow affected in 2023 by one-off effects of 2.7 m€ caused by changes in the Management Board

Committed to shareholder returns

¹ Based on the particular closing price at year-end ²Subject to approval at the annual meeting

Bonus/special dividend Dividend

Outlook 2024

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

Outlook 2024

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

Outlook 2024

New Product innovation cleaning is coming up

Outlook 2024

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 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, particularly in Q1, but also in FY 2024
• Turnover is expected to decrease slightly in Q1 2024 vs. Q1 2023

Your questions, please.

Annex

Leifheit is financially solid and pays reliable dividends to shareholders

Strong financial structure in m€

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

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 π	m

		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
ROCE1 ▪	%	8.2	14.1	13.8	1.8	4.5

-1

¹ Definition of ROCE changed in 2019, ROCE 2018 adjusted for comparability reasons

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 Wenko	Gimi	Brabantia Juwel	Artweger Stewi
	Kärcher	Vileda		Metaltex		Rörets	Blome
	Kitchen goods			Wellbeing
Zyliss	Tescoma	WMF	Gefu	Bosch		Laica	Tanita
	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 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)
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

27 March 2024 Annual reports 2023, sustainability report including non-financial Group report 2023

Investor and analyst conference call

8 May 2024

Quarterly statement for the period ending 31 March 2024

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