Leifheit AG

Investor Presentation • Sep 19, 2017

Our upward trend continues.

Leifheit AG Investor Presentation

Berenberg and Goldman Sachs German Corporate Conference September 2017 - Munich

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.

Agenda

• Introduction to Leifheit
• Highlights First Half of 2017
• Financial Figures First Half of 2017
• Forecast Financial Year 2017
• Strategy "Leifheit 2020" and Key Initiatives 2017
• Investment Highlights

Introduction to Leifheit

"We are your leading experts for solutions that make your everyday life at home more easy and convenient"

Leifheit Group
Brand Business (~ 85% of turnover)	Volume Business (~ 15% of turnover)
 Distribution in international markets  Product categories: Cleaning, Laundry Care, Kitchen goods, Wellbeing
 High-quality branded products with a high degree of consumer benefit, mid to upper price segment  Consistent brand management  Systematic processes for innovation and market launch	 Products in mid-price range  Customer-specific product development  Strong service component
	Project Business

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Introduction to Leifheit

Offering products in four categories

Cleaning

Leifheit has an easy and convenient solution for every cleaning demand. Our high quality cleaning products can be flexibly combined.

Kitchen goods

Opening, cooking, cutting or storing – Leifheit's kitchen accessories simplify work and keep hands and kitchen clean.

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Laundry care

Whether it's laundry dryers for the house or rotary dryers for the garden, an ironing board or a steam ironing system – Leifheit ensures fresh, clean and well-kept laundry.

Wellbeing

Under the Soehnle brand we offer an assortment of scales that always cut a good figure – in the kitchen and the bathroom.

Introduction to Leifheit

Operating in more than 80 countries with 15 own branches

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Financial Figures First Half of 2017

Leifheit remains on course

Operational performance in H1 despite slower start on track

• Shortfall of sales in Q1 2017 compensated in the second quarter by Brand Business
• Group turnover in H1 on par with previous year
• EBIT below previous year due to one-off effects from restructuring of sales activities and increased marketing expenses
• Both measures are investments in further strengthening our strategic Brand Business
• Guidance for Financial Year 2017 confirmed
• Increased dividend for the eighth consecutive year:
• Payment of an ordinary dividend of € 2.10 and a special dividend of € 0.80 for business year 2016

Capital increase from company funds:

• Share capital increased from € 15 m to € 30 m by converting retained earnings
• Issue of bonus shares (scrip issue) at a 1-to-1 ratio to boost liquidity and attractiveness of the Leifheit share

Group turnover stable with good performance in Germany and Eastern Europe

Group turnover by region H1 2017 46.0 % 40.1 % 10.6 % 3.3 % Germany Central Europe Eastern Europe Rest of the world

• Shortfall of sales in Q1 2017 compensated in the second quarter
• Germany grew by 9.0 % due to a strong performance of both brand business and volume business
• Central Europe declined by 8.8 %, as sales saw pressure in France, Italy and Luxembourg, not compensated by strong performance in Belgium
• Continuous strong growth in Eastern European markets by 4.3 %, driven by two-digit growth in Hungary, Poland und the Ukraine

Group result impacted by non-recurring expenses

		H1 2016	H1 2017	∆
Group turnover	€ m	121.1	120.9	-0.2 %
Gross margin	%	47.6	47.1	-0.5 pps
Foreign currency result	€ m	-1.0	-1.1	-14.2 %
EBIT	€ m	10.1	6.8	-33.4 %
EBIT margin	%	8.4	5.6	-2.8 pps
Earnings before taxes (EBT)	€ m	9.4	6.2	-34.2 %
Net result for the period	€ m	6.6	4.4	-33.8 %

• Group turnover stable and in line with the first half of 2016
• EBIT declines due to of one-off effects from reorganizing sales activities and increased advertising expenditures
• Both measures are investments to further strengthen our strategic Brand Business

Forecast Financial Year 2017

2017: Sustainable growth in turnover, earnings affected by one-off effects Forecast Financial Year 2017

Economic environment 2017	Moderate economic growth in our key European markets ► External risks of changed US economic policies, elections in most ► European countries as well as a rising level of inflation Retail business optimistic for 2017, propensity to consume of customers ► continuously stable
Forecast Group development 2017	Continue to pursue group growth strategy "Leifheit 2020", ► despite current risks in the retail sector Group: Turnover growth of 3.5 to 4.5 % ► Brand Business: Turnover growth of 4 to 5 % Volume Business: Turnover growth of about 2 to 3 % EBIT on the 2016 level (after one-off effects from reorganization ► of sales of € 2.0 to 2.5 m) Investments of about € 7 m (2016: € 7.8 m) ► ROCE slightly below 2016 (2016: 16.3 %) ► Free cash flow of about € 4 to 6 m ►
Group development until 2020	Sustainable and profitable organic turnover growth ► of 4 to 5 % CAGR1 Target EBIT margin of 8 to 9.5 % ►

Strategy "Leifheit 2020" and Key Initiatives 2017

Leifheit's vision for 2020 Strategy "Leifheit 2020" and Key Initiatives 2017

"We are your leading experts for solutions, that make your everyday life at home more easy and convenient."

Investor presentation I September 2017 I p. 15

Strategy "Leifheit 2020" and Key Initiatives 2017

Strategy "Leifheit 2020" will deliver higher levels of growth and excellence

• Starting from an efficient platform, solid margins and a lean profile, Leifheit is focusing on future growth:
• Expansion of the product portfolio
• Expansion of the customer footprint
• Expansion of geographical footprint
• External growth options (focus on core categories)
• Leifheit is targeting organic growth of 4 5 % CAGR
• From € 10 m additional revenue we will generate € 2 m profit and 10 cents dividend per share
• Leifheit defined ten strategic guidelines to strengthen competitiveness, drive growth and increase sustainable profitability:
• Where will we grow?
• How will we grow?
• Strategic guidelines are the basis for numerous individual projects to create the capability to deliver growth

Vectors of growth: New products vs existing business

New products (20 – 30 % of annual turnover growth)

• Outcome of the new product pipeline defined until 2020
• Based on the mega trends relevant for Leifheit:
• Fading of traditional gender rolls
• Electrification
• Digitalization & connectivity
• Based on Leifheit consumer segmentation
• Existing and new product segments
• Different innovation streams by grade of technical change / newness of application

Strategy "Leifheit 2020" and Key Initiatives 2017/2018 CleanTenso – hygienically clean without chemicals

Strategy "Leifheit 2020" and Key Initiatives 2017/2018 Wireless, absorbent and always ready to hand

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Investor presentation I September 2017 I p. 19

Strategy "Leifheit 2020" and Key Initiatives 2017

Unique – and only by Soehnle!

Modern, unique designs – known quality: personal scales by Soehnle Strategy "Leifheit 2020" and Key Initiatives 2017

Shape Sense-Profi and -Control Line

• Professional scale for athletes and health enthusiasts
• Easy tracking of training efficiency with Premium body impedance analysis (BIA)
• Dietary guidance program
• Beginners level Shape Sense Control-line RRP 29.99 €
• Shape Sense Profi 300 RRP 49.99 €

Style Sense Line

• Multifunctional personal scale for the entire family
• Innovative new designs with improved usability
• Range of different scales for each individual situation
• Special Comfort edition with easy-to-read display and enhanced functionality
• RRP Style Sense Multi 100 at 34.99 €
• RRP Style Sense Comfort 500 at 39.99 €

The new Soehnle range of personal scales Strategy "Leifheit 2020" and Key Initiatives 2017

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Soehnle connect – gives your feeling a value

Soehnle connect system

• Innovative and easy to use body analysis system
• Integrated system of digital personal scale, wearables and fitness app
• Utilization of state-of-the-art digital technology on all common platforms
• Ideal to monitor all relevant health data, either at home or on-the-go
• Launch in H2 2017

Strategy "Leifheit 2020" and Key Initiatives 2017

Multiple devices connected in just one app

Connection of fitness- and health oriented data from different devices with recommendations in only one smartphone app offers a value added consumer experience

Vectors of growth: New products vs. existing business

Existing business (70 – 80 % of annual turnover growth)

• "Win from strength markets" – Europe
• Conversion of existing customer listings in broad distribution by
  • Sales effectiveness/efficiency programs
  • Marketing/promotion programs
• Closure of listing gaps in existing and new customers

"Win from behind" markets – Europe

• Entry via promotional business into multifold of customers based on a hunting list
• Conversion of promotions in listings
• "Entrepreneurs" – ME/NA/Asia
• Opportunistic realization of growth until 2017
• More focus as of 2018

Sales effectiveness and efficiency program

Harmonized "go-to-market" strategy drives substantial growth in Eastern Europe

• Situation in 2014: Lack of structured market approach to Eastern European (EE) region
• Analysis of each individual EE country and establishment of EE coordination team with clearly defined responsibilities and targets
• Developed a hunting list for each country
• Established unified model for promotions for EE region
• Prepared strict assortment sets for every distribution channel
• Build-up of new customer service center for EE countries in Prague, Czech Republic
• Established central logistics center for EE countries in Blatná, Czech Republic

Strategy "Leifheit 2020" and Key Initiatives 2017

More contemporary positioning of Leifheit brand

Investor presentation I September 2017 I p. 30

Strategy "Leifheit 2020" and Key Initiatives 2017

More contemporary positioning of Leifheit brand

TV-advertisement

Q1 2017:	CLEAN TWIST System
Q1 2017:	Window vacuum
Q3 2017:	Air Board
Q1 2018:	LinoProtect

Investment Highlights

Investment Highlights

Growth within existing structure generates dividend capacity

€ 10.0 m turnover growth ~ € 2.0 m EBIT ~ € 1.3 m net result € 1.0 m dividend capacity = 0.10 € dividend per share¹

Investor presentation I September 2017 I p. 33

Committed to shareholder returns Investment Highlights

0,00 0,50 1,00 1,50 2,00 2,50 3,00 -1 2016: € 2.10 + special dividend¹ € 0.80 Dividend per share / in € Target payout ratio ~ 75%, surplus liquidity can be distributed as special dividend

Long-term dividend development

Bonus/special dividend Dividend

1 Dividend based on number of shares before scrip issue in June 2017 (5,000,000)

Investor presentation I September 2017 I p. 34

Summary

Leifheit is more than just household products – for more than 55 years

Your questions please.

Leifheit AG Investor Presentation

Berenberg and Goldman Sachs German Corporate Conference September 2017 - Munich