Leifheit AG

Investor Presentation • Aug 10, 2023

Investor Presentation Q2 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

Stefan De Loecker CEO a.i.

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

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

• Resp. 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

H1 2023 consumer climate still very unfavorable - we expect consumer demand in Europe to remain depressed, especially for non-food household products

GfK consumer climate index

July 2023, Germany

Source: GfK

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. +40% vs. 2020*
• Raw material costs will not reach level of 2019/20 in the short term, there is a "New Normal" at a higher level
• Currency differences between the Euro and the Dollar/RMB led to approx. 10% higher purchasing costs from Asia

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

Executive Summary 6M 2023

Our vision: Leifheit makes the 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 H1 2023

Group turnover of 138.1 m€ in 6M 2023, up by 1.3% compared to 6M 2022 (136.3 m€) - despite difficult economic conditions and weak consumption

Group EBIT reached EUR 4.8 m€ in H1 2023, an increase of 123 % compared to H1 2022 (2.1 m€)

Free cash flow improved by 18.1 m€ to 7.6 m€ after -10.5 m€ in 6M 2022 due to improvement in working capital

Group liquidity increased by 19.6 m€ to 37.0 m€ compared to 6M 2022

Leifheit is financially solid and pays reliable dividends to shareholders

Strong financial structure

in m€

Solid long-term stock performance

Turnover in 6M 2023 1.3% above previous year and significantly above the pre-crisis level

in m€

• Our successful initiatives deliver solid results despite the crisis in H1 2023
• Group turnover in 6M 2023 at 138.1 m€ is 1.3% above the previous year (6M 2022: 136.3 m€).

Significantly increased EBIT due to improved gross margin

		6M 2022	6M 2023	∆
Group turnover	m€	136.3	138.1	1.3%
Gross margin	%	38.6	40.9	2.3 pps
Foreign currency result	m€	1.4	-1.1	>-100%
EBIT	m€	2.1	4.8	>100%
EBIT margin	%	1.6	3.5	1.9 pps
Earnings before taxes (EBT)	m€	1.7	3.9	>100%
Net result for the period	m€	1.3	2.6	>100%
EPS	€	0.13	0.28	>100%

• Despite persistent inflation and consumer restraint especially in the core market Germany, EBIT increased, mainly from the increase in gross margin due to sales price increases and positive product mix effects
• Foreign currency result decreased by 2.5 m€ to -1.1 m€ (6M 2022: € 1.4 million) mainly due to foreign currency valuations and realised exchange rate losses

Group earnings development

6M 2019 – 6M 2023 in m€

Since 1 year steadily increasing gross margins

		Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023
Gross Margin	%	36.0	37.9	39.7	40.5	41.3

+ 5.3 pps

• Increase in gross margin in 6M 2023 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 18.1 m€ from -10.5 m€ in 6M 2022 to 7.6 m€ in 6M 2023

in m€	6M 2022	6M 2023	∆
Cash flow from operating activities	-7.9	10.8	18.7
Cash flow from investment activities	-2.6	-3.2	-0.6
Cash flow from financing activities	-10.3	-6.9	3.4
Free cash flow1	-10.5	7.6	18.1
in m€	30/06/2022	30/06/2023	∆
Cash and cash equivalents at the end of reporting period	17.4	37.0	19.6
Financial liabilities	-	-	-

• Free cash flow significantly improved by 18.1 m€ in 6M 2023.
• Cash and cash equivalents at 37.0 m€, slightly improved compared with 6M 2022.
• Cash outflow from financing activities lower than in 6M 2022 (-10.3 m€) at –6.9 m€ in 6M 2023.
• Group liquidity increased by 19.6 m€ to 37.0 m€ compared to 6M 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 18.1 m€ from -10.5 m€ in 6M 2022 to 7.6 m€ in 6M 2023

• Improvement in working capital, especially the reduction in inventories
• In the Q2 2023 free cash flow reached 11.0 m€ (Q2 2022: 5.1 m€)

Our purpose? Happy consumers!

In H1 2023 we continued to pursue successful initiative 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 and 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 the 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

Expanding our product portfolio to include 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 is accompanied by eyecatching POS measures and social media activations
• Available since beginning of July

+ Contribution from Operations: Efficient and flexible production and logistics processes 3 4

Path to Operational Excellence:

• Focus on the development of innovations with relevant consumer benefits and high marketing potential
• Reducing the complexity and streamlining of product ranges
• Flexible and efficient factories
  • Modular concepts for core products
  • Standardization of production lines and development of platforms
  • Learning Factory: Continuous Improvement
• Logistics excellence and enhancing e-commerce capabilities to enable profitable growth
• Increased use of group synergies in purchasing and logistics
• Forward-looking inventory management
• Constant review of our supply chains in terms of costs and supplier network

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 gradually been put into operation since beginning in the second quarter of 2023

Successful transformation of our logistics from classic retail shipping to B2C + D2C excellence

Number of B2C + D2C delivery positions

2018 – 2023e

• We strive for Logistics excellence and enhancing e-commerce capabilities to
  • enable profitable growth in the booming online business and
  • become more independent from major internet platforms
• Significant growth of B2C + D2C shipments by approx. +850% in 6M 2023 compared 6M 2018

Path to Operational Excellence: consistent implementation of lean principles leads to increasing productivity by 34 pps

Productivity* at Blatná production site 2020 – 6M 2023 in % ^{102 108} 120 136 100 110 120 130 140 2020 2021 2022 6M 2023 Investor Presentation August 2023 ⁴

* Measured in invested worker hours for each single product

• Thanks to the consequent implementation of Lean principles, we achieved significant increases in efficiency and productivity, we were able to partially cushion the negative effects of extremely high raw material and energy prices
• Despite the lower capacity utilization compared to 2020 and 2021, productivity further increased in 2022 and 2023

The increase of productivity and the improvement of the efficiency in our internal processes drives to a decrease of 50 employees in FY 2022 vs. FY 2019* and 76 employees in 6M 2023 vs. 6M 2019* 4

Number of employees (average)

FY 2018 - 2022

Number of employees (average) 6M 2018 – 6M 2023

13% increase in turnover per employee FY 2022 vs. FY 2019* 21% increase 6M 2023 vs. 6M 2019* 4

Group turnover per employee full year*

2018 - 2022 in k€

Group turnover per employee first half*

6M 2018 – 6M 2023 in k€

Challenging market environment ahead forecast 2023 confirmed

	Forecast 2023
Group turnover	Slightly below the previous year
Turnover Household	Noticeable below the previous year
Turnover Wellbeing	Noticeable below the previous year
Turnover Private Label	Slightly above previous year's level
Group EBIT	Positive, in the lower single-digit million Euro range
Free Cashflow	Positive, in the lower single-digit million Euro range

• Russia-Ukraine war and ongoing inflation are expected to continue dampening 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 autumn and 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

6M 2019 – 6M 2023 in m€

Group turnover by segment

6M 2023

• Turnover in Household segment with +1.4% above previous year (6M 2022: 113.4 m€) due to successful advertising campaigns.
• In Wellbeing segment sales growth of +4.4% 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 saw a small amount of growth.

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

Group turnover by region

6M 2019 – 6M 2023 in m€

Group turnover by region

• Germany: +2.4% Despite still extremely weak consumer climate, turnover growth due to successful advertising campaigns and further distribution expansion.
• Central Europe: 3.4% 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: -2.6% Romania with very positive turnover development and double-digit growth rates but declines in important sales markets of Poland and the Czech Republic.

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	29
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

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)

Body analysis scales Shape Sense Connect 100 + 200

Blood pressure monitors AirFresh Clean 400 Systo Monitor 200 + 300

Air Purifier

Leifheit – more than 60 years of passion for housework

European competitors by category

	Cleaning			Laundry care
Tonkita	Spontex Swiffer	Rival Vileda		Vileda Wenko Metaltex	Gimi	Brabantia Juwel Rörets	Artweger Stewi
	Kärcher						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

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

Dates 2023 Contact

19 September 2023 Berenberg and Goldman Sachs Thwelfth German Corporate Conference, Munich

15 November 2023 Publication Quarterly Statement (Q3)

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

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

www.leifheit-group.com

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau