Leifheit AG

Investor Presentation • Nov 15, 2023

Investor Presentation Q3 2023

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.

Changes in the Managing Board

Alexander Reindler CEO starting 12/2023

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

Stefan De Loecker CEO a.i., returning to Supervisory Board 12/2023

Previous experience

• More than 30 years of experience in management positions in the global consumer goods sector at companies such as the Nestlé Group, most recently as CEO at Beiersdorf AG

Core competencies

• General management, brand building, innovation and market launch strategies

Igor Iraeta Munduate COO

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

Marco Keul CFO

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 9M 2023

Our vision: Leifheit makes everyday life at home easier and more convenient

We continued to pursue successful initiatives to increase consumer demand, improve gross margins, increase distribution and reduce costs in Q3 2023

Group turnover of 200.0 m€ in 9M 2023, up by 3.5% compared to 9M 2022 (193.2 m€) – despite difficult economic conditions and weak consumption

Significant year-on-year improvement in gross margin by 3.0 pp to 41.4%

Group EBIT reached EUR 5.0 m€ in 9M 2023, an increase of 55.9% compared to 9M 2022 (3.2 m€)

Free cash flow increased by 11 m€ to 13 m€ after 2 m€ in 9M 2022 due to improvement in working capital

FY 2023 Group turnover and earnings forecast raised

Investor Presentation

Leifheit is financially solid and pays reliable dividends to shareholders

Strong financial structure in m€

Group turnover up 3.5 % in the first nine months despite continuing difficult market environment

Group turnover development by quarters

in m€

• Our successful initiatives deliver solid results despite the challenging economic environment and an unchanged subdued consumer sentiment in Q3 2023
• Group turnover in 9M 2023 at 200 m€ is 3.5% above the previous year (9M 2022: 193.2 m€)

Consumer sentiment recovery is still a long way off

GfK consumer climate index

October 2023, Germany

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

Source: GfK

EBIT increased due to improved gross margin, despite one-off effects in Q3 caused by changes in Management Board

		9M 2022	9M 2023	∆
Group turnover	m€	193.2	200.0	3.5%
Gross margin	%	38.4	41.4	3.0 pps
Foreign currency result	m€	3.8	-0.4	>-100%
EBIT	m€	3.2	5.0	55.9%
EBIT margin	%	1.6	2.5	0.9 pps
Earnings before taxes (EBT)	m€	2.5	3.8	50.4%
Net result for the period	m€	2.2	2.6	22.6%
EPS	€	0.23	0.28	21.7%

• One-off effects of 2.7 m€ caused by changes in the Management Board burdened administrative costs in Q3 2023 while reversal of provisions for the long-term share-based payments for the Management Board of 1.2 m€ had a positive effect in prior-year
• Despite this, EBIT increased due to 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

9M 2019 – 9M 2023 in m€

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 approx. +34% vs. 2020*
• Most raw material costs (PP Plastics, Aluminium) already with upward trend
• Price level of 2019/20 will not be reached in the short term, there is a "New Normal" at a higher level
• Currency differences between Euro and Dollar/RMB results in approx. 7% higher purchasing costs from Asia

^*Calculation basis: average price 2020 vs. price as of October 2023

Since 1 year steadily increasing gross margins

		+ 4.7 pps
		Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023
Gross Margin	%	37.9	39.7	40.5	41.3	42.6

• Improvement in gross margin because of
  • higher sales prices
  • positive product mix effects due to the focus on effective TV advertising campaigns for profitable products
  • increasing productivity and efficiency in production and logistics
  • slight decline in procurement and energy costs, despite remaining on a high level

Free cash flow increased by 11 m€ from 2.0 m€ in 9M 2022 to 13 m€ in 9M 2023

in m€	9M 2022	9M 2023	∆
Cash flow from operating activities	6.1	17.1	11.0
Cash flow from investment activities	-4.0	-4.1	-0.1
Cash flow from financing activities	-10.5	-7.0	3.5
Free cash flow1	2.0	13.0	11.0
in m€	30/09/2022	30/09/2023	∆
Cash and cash equivalents at the end of reporting period	29.8	42.2	12.4
Financial liabilities	-	-	-

• Free cash flow significantly improved by 11 m€ in 9M 2023 as a result of improved working capital management
• Free cash flow affected in Q3 by one-off effects of 2.7 m€ caused by changes in the Management
• Lower cash outflow from financing activities mainly due to the dividend payment of 6.7 m€ (9M 2022: 10.0 m€)
• Group liquidity increased by 5.9 m€ to 42.2 m€ compared 31 December 2022

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.

Free cash flow increased by 11 m€ from 2.0 m€ in 9M 2022 to 13 m€ in 9M 2023

• Improvement in working capital, especially the reduction in inventories
• Free cash flow affected in Q3 by one-off effects of 2.7 m€ caused by changes in the Management

Our purpose? Happy consumers!

In Q3 2023 we continued to pursue successful initiatives to

"Our most long-lasting products" and "Electricity Savers" campaigns aim for sustainability 1

• The current market situation offers the opportunity to further promote our energy-saving, durable products
• In view of rising energy prices, many households are currently looking for ways to reduce their energy consumption and thus also their electricity costs
• Switching from electric dryers to Leifheit Pegasus and Linomatic dryers not only saves electricity and money, but also reduces CO² emissions
• High quality along with its long life cycle products belong to the DNA of the Leifheit brand
• Strongly convinced from our product quality we often give longer warranty period than the competition or as required from the legislative authority

Successful campaign with focus on product quality "Made in Germany" 1

• The "Made in Germany" campaign including TV commercial led to increased consumer interest not only for the Profi cleaning system but for the entire Leifheit brand

Generate 15% more solar energy on domestic solar panels with Leifheit`s window & frame cleaner 1

• Window & Frame Cleaner with additional consumer benefits
• Gently removes dirt from solar panels from adhering dirt on the balcony
• Balcony power plants can save up to 130 kg of CO² , these should be cleaned at least once a year for long-term performance
• With the practical telescopic handle with joint, the length and the cleaning angle of the Window & Frame Cleaner can be adjusted individually and all dirt spots can be reached safely

Successful expansion of our product portfolio to new target groups 1

• New premium standing dryer Pegasus 150 Solid Slim Black in the colour combination black and anthracite serves a current colour trend and is aimed at a target group that has high demands on design and aesthetics when furnishing their own home, but does not want to compromise on the quality of their dryer
• Product launch has been accompanied by eye-catching POS measures and social media activations

Distribution of the European business volume to three logistics locations with short distances to our customers 4

• New central European logistics hub (Leifheit Distribution Western Europe, LDW) for our Leifheit and Soehnle products 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 and become more independent from major internet platforms.
• New logistics platform has completely been put into operation in October 2023

Leifheit Group raises 2023 forecast – still challenging market environment ahead

	Forecast 2023
Group turnover	Slightly above the previous year (previously: slightly below previous year)
Turnover Household	Slightly above the previous year (previously: noticeable below the previous year)
Turnover Wellbeing	On previous year's level (previously: noticeable below the previous year)
Turnover Private Label	Slightly below the previous year (previously: slightly above the previous year)
Group EBIT	In the mid single-digit million-euro range (previously: in the lower single-digit million Euro range)
Free Cashflow	In the upper single-digit million-euro range (previously: in the lower single-digit million Euro range)

• Russia-Ukraine war, war in the Middle East and ongoing inflation are likely to continue to burden economic development
• Inflation could have a perceptible impact on consumer demand
• Costs for energy and procurement remain high, a renewed rise in energy prices in winter could exacerbate the situation

Your Questions

please.

Household and Wellbeing segments above previous year's level, Private Label largely stable

Group turnover by segment

9M 2019 – 9M 2023 in m€

Group turnover by segment 9M 2023

• Turnover in Household segment with +4.2% above previous year (9M 2022: 158,9 m€) due to successful advertising campaigns.
• In Wellbeing segment sales growth of +4.3% after a significant decline in the same period of the previous year.
• Private Label segment turnover remained largely stable. While Birambeau's kitchen products recorded slight declines, Herby's energy-saving drying racks recorded slight growth.

Leifheit back on growth track despite continuing inflation and difficult market environment

^{75 85} 102 80 85 74 83 90 ^{83 86} 22 25 27 24 25 6 9 6 6 4 0 50 100 150 200 250 9M 2019 9M 2020 9M 2021 9M 2022 9M 2023 Germany Central Europe Eastern Europe Rest of World Group turnover by region 9M 2019 – 9M 2023 in m€ 177 202 225 193 200

Group turnover by region

• Germany (+5.2%): Despite still extremely weak consumer climate, turnover growth due to successful advertising campaigns and further distribution expansion.
• Central Europe (+4.3%): Significant double-digit sales growth in the Netherlands, due to successful advertising measures and additional listings. In France, on the other hand, lower turnover because of lower volumes in discount promotions.
• Eastern Europe (+2.2%): Romania with very positive turnover development and double-digit growth rates, back on growth path in the Czech Republic, but declines in important sales market of Poland.

We were able to react flexibly to the changed capacity utilization in production and logistics by reducing remaining vacation time and credits on working time accounts and by cutback in the numbers of temporary workers

Leifheit makes top quality household products

Profi Floor Wiper 4.7 stars

5 Sterne	84%
4 Sterne	9%
3 Sterne	3%
2 Sterne	1%
1 Stern	2%

CLEAN TWIST Disc Mop Ergo 4.6 stars

5 Sterne	78%
4 Sterne	14%
3 Sterne	4%
2 Sterne	2%
1 Stern	2%

5 Sterne	779
4 Sterne	149
3 Sterne	40
2 Sterne	20
1 Stern	30

Linomatic 500 Deluxe 4.5 stars

5 Sterne	77%
4 Sterne	11%
3 Sterne	5%
2 Sterne	2%
1 Stern	6%

Leifheit Group structure

Our European production footprint ensured reliable supply to customers despite COVID-19-related supply chain challenges

Distribution in all relevant distribution channels

Turnover 2022 in % (previous year's figures)

Long-term financial overview

I π	m

		2018	2019	2020	2021	2022
Group turnover	m€	234.2	234.0	271.6	288.3	251.5
Profitability
▪ Gross margin	%	43.6	43.1	45.0	42.3	38.7
▪ Cash flow from operating activities	m€	10.2	15.9	4.0	16.4	14.0
▪ Free cash flow	m€	3.7	10.1	-5.5	9.6	8.8
▪ EBIT	m€	13.1	9.9	18.8	20.1	2.8
▪ EBIT margin	%	5.6	4.2	6.9	7.0	1.1
▪ EBT	m€	11.9	8.5	17.7	19.3	2.3
▪ Net result for the period	m€	8.4	5.8	12.5	14.2	1.2
ROCE1 ▪	%	10.5	8.2	14.1	13.8	1.8

-1

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

Long-term financial overview

		2018	2019	2020	2021	2022
Per share
Net result for the period, EPS2	€	0.88	0.61	1.32	1.49	0.13
Free cash flow	€	0.39	1.06	-0.57	1.00	0.92
Dividend	€	1.05	0.55	1.05	1.05	0.702
Special dividend	€	--	--	--	--
Investments	m€	6.6	6.0	9.6	7.3	5.4
Depreciation	m€	6.9	8.2	8.5	7.8	7.5
		31/12/2018	31/12/2019	31/12/2020	31/12/2021	31/12/2022
Employees	No.	1,119	1,106	1,098	1,080	1,063
Balance sheet total1	m€	221.8	214.6	230.0	238.8	216.1
Equity	m€	101.8	96.2	100.4	111.3	112.5
Equity ratio	%	45.9	44.8	43.7	46.6	52.0
Liquidity	m€	50.9	50.3	38.8	38.1	36.3

¹ Not including repurchased treasury shares

² Dividend proposal

Committed to shareholder returns

¹ Based on the particular closing price at year-end

Soehnle awards (selection)

Blood pressure monitors AirFresh Clean 400 Systo Monitor 200 + 300

Leifheit – more than 60 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

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 44.35%

1 ESG: New strategic sustainability goals Focus on climate neutrality till 2030

Analyse our emissions Objectives until ²⁰³⁰ Emission reduction measures until 2030 Compensate Read more at our sustainability report 2022 www.leifheit-group.com/en/investorrelations/reports-and-presentations/ • 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 CO² 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 non avoidable emissions by means of certified projects for climate protection ¹Scope-1- und Scope-2-Emissionen. 1 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

Read more at our sustainability report 2022

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

Leifheit is frequently top company in home appliances and household goods categories

• Leifheit was awarded the "Germany's Best Sustainability" seal by Focus and Focus-Money in 2022 for the second year running. The study analyses social listening data for some 19,000 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.
• Leifheit was awarded the "Maximum Trust 2022" seal by Deutschland Test and achieved the highest ranking in the household products category. The study was conducted by IMWF Institut für Management- und Wirtschaftsforschung on behalf of Focus Money and Deutschland Test.
• The FAZ-Institut also awarded Leifheit the "Excellent Sustainability" certificate back in 2021 following a similar analysis of data from around 21,000 companies. In 2022, the FAZ-Institut even ranked us among the "Best of the Best". The meta-study looked at four individual studies: "Germany's Fairest" (product service, value for money, customer satisfaction, employer fairness, sustainability), "Top Employers" (innovation, digitalisation, sustainability, career, pay, corporate culture), "Most Trustworthy Companies" (trust, management, profitability, sustainability, product service, employer) and "Digital Pioneers" (digitalisation, innovation, profitability, employer). In all of them, we achieved top scores.
• The "Fair Company" Award Leifheit received in 2022 demonstrates our strength as a fair and attractive employer. The Initiative honors companies that offer young people fair working conditions and prospects for development. The assessment for the award is carried out by the Handelsblatt newspaper and Germany's Institut für Beschäftigung und Employability as a research partner based on a questionnaire that is based on extensive analyses on the subject of fairness and on what today's young professionals and the general public expect from a fair, attractive employer.
• In 2022, Leifheit received the award "Germany's best vocational training company" for the 5th time in a row. The award was based on a study conducted by IMWF Institut für Management-und Wirtschaftsforschung GmbH on behalf of Deutschland Test and the business magazine Focus Money.
• According to a study conducted by the Deutsche Institut für Service-Qualität (DISQ) on behalf of ntv, the Leifheit online shop was one of "Germany's best online shops 2022". The study involved a consumer survey examining customer satisfaction in the areas of value for money, range of products, customer services, website, ordering process and payments terms, as well as shipping and returns.
• For the Germany test seal "Excellent customer service 2022", which Leifheit received in 2022, Focus and Focus Money together with Deutschland Test examined a good 22,000 companies and brands from 250 industries.

Financial calendar and contact

Financial calendar 2023 / 2024 Contact

27 – 29 November 2023 German Equity Forum, Frankfurt/Main

27 March 2024

Annual reports 2023, sustainability report including non-financial Group report 2023

27 March 2024 Investor and analyst conference call

8 May 2024

Quarterly statement for the period ending 31 March 2024

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

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