Leifheit AG

Earnings Release • Nov 1, 2012

Mission Statement Company profile

Leifheit-Group is a European developer and manufacturer of branded products for selected household areas.

Transparent corporate structure

Leifheit
Brand Business	Volume Business
Turnover 2011: 170.5 " m (Share 76.8%)	Turnover 2011: 51.6 " m (Share 23.2%)
! High-quality brand products with a high degree of consumer benefit	! Products in mid-price range
! Consistent brand management	! Customer-specific product developments
! Systematic processes for Innovation and market launch	! Strong service components
! Distribution in international markets	! Distribution in international markets
! Product categories: Cleaning, laundry care, kitchen goods and wellbeing	! Product categories: Cleaning, laundry care, kitchen goods and wellbeing
	Project business
Company presentation ! November 2012 ! P. 3

Company profile

Four product categories cluster our product portfolio

Brand manufacturer with global presence

14 locations

production facilities in Germany, France and Czech Republic

80 distribution partners worldwide

from Argentina to the USA

1,018 employees

thereof 400 in Germany

Company presentation ! November 2012 ! P. 5

Company profile

European allocation through all important distribution channels

Group development for the period ending 30 September 2012

Company presentation ! November 2012 ! P. 7

Group development

Revenue meets expectations, Earnings in line with estimates

Guidance vs. Performance

	Guidance as of 19 March 2012	Guidance as of 9 August 2012		Performance as of 30 September 2012	Forecast 2012
Turnover	Growth 3-5 %	Growth 2%	!	- 0.5%	Growth > previous year
EBIT*	Growth at least 10%	Growth at least 10%	#	9.4%	Growth > 10%
Brand Business	Growth in all categories	Growth in all categories	#	Turnover increased slightly: 2.1%	Growth > 3%
Volume Business	Maintain turnover of previous year level	Maintain turnover of previous year level	!	Drop in turnover: - 10.1%	Drop in turnover: - 10%

* EBIT 2011 adjusted for the one-off positive special effect of 2.5 " m from the acquisition of a controlling interest in Leifheit CZ a.s.

Group development

Profit increased disproportionately on disposal of bathroom unit

Development of turnover/adj. EBIT Group

divided into former household products division/former bathroom furnishings division/in " m

Company presentation ! November 2012 ! P. 9 * EBIT 2011 adjusted for the one-off positive special effect of 2.5 " m from the acquisition of a controlling interest in Leifheit CZ a.s.

Group development

Total turnover decreased slightly on weaker Volume Business; Brand Business continues to grow

Brand Business gains positive momentum in the third quarter 2012

" m	1 Jan to 30 Sep 2012	1 Jan to 30 Sep 2011	+/– %
Turnover Brand Business	132.0	129.3	2.1
! Cleaning	36.2	35.0	3.3
! Laundry care	56.8	56.1	0.9
! Kitchen goods	17.4	18.2	- 4.3
! Wellbeing	21.0	20.3	3.7
EBIT Brand Business	5.7	4.3	30.6

Turnover Brand Business

Company presentation ! November 2012 ! P. 11

Group development

Brand Business: Different development in the markets depending on the respective economic situation

" m	1 Jan to 30 Sep 2012	1 Jan to 30 Sep 2011	+/– %
Turnover Brand Business	132.0	129.3	2.1
! Germany	66.3	66.9	- 0.9
! Central Europe	46.8	46.3	1.0
! Eastern Europe	12.7	10.3	23.1
! Rest of world	6.2	5.8	8.1

Development in selected Central European markets:

• ! France, Austria, Switzerland, Benelux: 3.7%
• ! UK, Scandinavia: 7.9%
• ! Greece, Italy, Portugal, Spain: 16.7%

Group development

Volume business: Declining tendencies in kitchen and laundry-care units

" m	1 Jan to 30 Sep 2012	1 Jan to 30 Sep 2011	+/– %
Turnover
Volume Business	32.0	35.5	- 10.1
! Cleaning	0.1	0.2	- 77.9
! Laundry care	9.9	10.6	- 6.4
! Kitchen	19.6	22.6	- 13.1
! Wellbeing	0.7	0	n/a
! Contract
manufacturing	1.7	2.1	- 20.5
EBIT
Volume Business	2.0	2.8	- 28.8
		Project

business

10.0

Company presentation ! November 2012 ! P. 13

Group development

Net results for the period in " m

• strategy Leifheit GO!
• ! Higher EBIT due to efficiency improvements and strict cost discipline
• ! Increased tax rate affected net results

Rising EBIT margin amid growth and optimization measures

		1 Jan to 30 Sep 2012	1 Jan to 30 Sep 2011	+/– PP
Gross margin	%	44.0	42.5	1.5
EBIT margin	%	4.7	4.3	0.4
Return on equity*	%	7.9	7.1	0.8
Return on capital*	%	4.0	3.5	0.5

* Calculated on EBIT basis

Company presentation ! November 2012 ! P. 15

Group development

Slowdown of cash flow due to increased inventories, trade receivables and other assets

in " m	1 Jan to 30 Sep 2012	1 Jan to 30 Sep 2011
Cash flow from operating activities	1.0	4.5
Cash flow from investing activities	4.0	11.7
Cash flow from financing activities excluding financial assets	- 6.1	- 14.4
Effects from exchange rate differences	- 0.2	0.0
Change in cash and cash equivalents	- 1.2	1.8
Current funds at the end of the period	28.3	28.1

• ! Lower cash flow from operating activities due to an increase in inventories, trade receivables and other assets not classified as investment or financing activities of 4.9 " m
• ! Cash flow from investing activities reduced because of high cash inflow from financial assets in 2011

Expansion of the production site in Czech Republic and further automatization of our warehouse

Group development

Leifheit is well-equipped for the future with an equity ratio of 50.6%

Group development

Leifheit-Share: a dividend-paying share

2012 / 2013 Strategy and outlook

! Increasing number of households in Germany till the end of 2014. Especially the number of households with one to two persons is growing.

! Younger consumers are fundamentally shifting their attitudes towards quality while demanding products of higher value. That's why we will concentrate more on this target group in the future.

! Consumers increasingly ask for products that are produced sustainably and made by corporations which value resources, society and employees.

! Desire for deceleration: Consumer behavior will be influenced in the future because many people feel overworked and experience high exposure to stress at work and in their daily lives.

Company presentation ! November 2012 ! P. 21 Quelle: GFK

Strategy and outlook

Leifheit GO at a glance

Overall goal:	Profitable turnover growth for the group of 3–5%
Strategies: International sales strategy	Brand and communication strategy	Improving efficiency
! Systematic approach towards marketing to boost growth in our international core markets ! Clear focus on international markets that promise potential and are easy to access. ! Update market focus: ! Crisis countries are planned on a lower level ! Structural optimization in selected branches ! Focus on new markets in Eastern Europe and selected countries in Asia ! E-Commerce ! M&A	All brands: ! Focus on innovation ! New organization in marketing and product development ! POS-Excellence Brand Leifheit: ! Consistent implementation of single-brand strategy with optimized marketing mix Brand Soehnle: ! Completion of product portfolio "Relax" with innovative products ! Strengthening position as leader in core markets	! Efficient organization and processes to yield earnings growth ! Investing in technology and logistics additionally to insourcing selected products from the Far East. ! Efficient cost management

Strategy and outlook

Rigorous continuation of our growth strategy

Group target 2012

Slight increase in consolidated turnover Double-digit earnings* by at least 10%

Brand Business

Sutainable growth rate of 3–5%

Volume Business

Remained below our expectations

* EBIT 2011 adjusted for the one-off positive special effect of 2.5 " m from the acquisition of a controlling interest in Leifheit CZ a.s.

Leifheit share: a dividend-bearing share Annex

Company presentation ! November 2012 ! P. 25

Annex

Important locations in Europe

	Location	Description
	Nassau (Leifheit)	! Approx. 300 employees ! Marketing, Distribution, Research and Development, Quality control, head office ! Production of rotary dryers, isolate cans, roll holders, floor wiper and more
	Zuzenhausen (Leifheit)	! Approx. 100 employees ! Central logistics center
	Blatná/CZ (Leifheit)	! Approx. 360 employees ! Production of classic dryer racks and wall dryers among others
	Paris/F (Leifheit/ Birambeau)	! Approx. 110 employees ! Marketing, Distribution and Administration
	La Loupe/F (Herby)	! Approx. 70 employees ! Production of tower dryers as well as classic dryer racks and wall dryers

Annex

Dropping number of employees amid investments into production

• ! Brand recognition of 89%: Leifheit is one of the best-known brands in Germany
• ! Soehnle also reaches a brand visibility of 82%
• ! While exceeding 90% the satisfaction value is exceptionally high proving the quality of Leifheit and Soehnle products

Highest demands to quality and innovation Annex

Awards received by Leifheit Group (examples)

Company presentation ! November 2012 ! P. 29

Annex

Contacts and events

Georg Thaller (CEO) Dr. Claus-O. Zacharias (CFO)

Leifheit AG, D-56377 Nassau Tel.: +49 2604 977218 ir@leifheit.com www.leifheit.com

Financial calendar 2013

Annual report 2012 9 April 2013 Interim report as at 31 March 2013 14 May 2013 Interim report as at 30 Juni 201313 August 2013 Interim report as at 30 September 2013 11 November 2013 Annual General Meeting 6 June 2013

P.O. Box 11 65 563771 Nassau/Lahn, Germany Telephone: +49 2604 977-0 www.leifheit.com ir@leifheit.com