Leifheit AG

Investor Presentation • Mar 28, 2019

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-todate, 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
• Financial Figures FY 2018
• Key strategic initiatives
• Forecast Financial Year 2019
• Investment Highlights
• Annex

Introduction to Leifheit

Introduction to Leifheit

Tradition – Innovation – Vision

1959

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

Leifheit Group

Household	Wellbeing	Private Label

• 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

• Distribution in international markets

• Products in mid-price range

• Customer-specific product development
• Strong service component

Introduction to Leifheit

One of the leading suppliers of household products in Europe

Laundry care

40 % Turnover share

Laundry dryers, ironing boards and storage for fresh, clean and well-kept laundry

Kitchen goods

17 % Turnover share

Useful kitchen aids for opening, cooking, cutting or storing

Wellbeing

9 % Turnover share

Scales, medical products and air treatment: complementary new assortments for a modern lifestyle

Experienced Management Board

Ivo Huhmann CFO & CO-CEO ad interim born 1969

Igor Iraeta Munduate COO & CO-CEO ad interim born 1974

Henner Rinsche CEO ab 01.06.2019 born 1971

Previous experience

• Many years of management experience at C-Level
• Various global financial management functions at Stiebel Eltron and General Electric

Core competencies

• Digitalization, IT, cost productivity, strategic growth models, M&A and Post-Merger Integration

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

• Many years of experience as President Europe at SodaStream
• Various leading positions at Henkel, Danone, PepsiCo and Procter & Gamble

Core competencies

• General Management, Business Development and consumer goods Marketing

Present in leading distribution channels

Introduction to Leifheit

Operating in more than 80 countries with 15 own branches

Highlights Financial Year 2018

Successful implementation of strategic projects

At a glance

		2017	2018	∆
Group Turnover	€ m	236.8	234.2	-1.1 %
Gross margin	%	46.4	43.6	-2.8 PP
Foreign currency results	€ m	-1.5	0.3	>100 %
EBIT	€ m	18.8	13.1	-30.7 %
EBIT margin	%	8.0	5.6	-2.4 PP
Earnings before taxes (EBT)	€ m	17.7	11.9	-32.7 %
Net result for the period	€ m	12.9	8.4	-34.7 %
ROCE	%	12.7	8.5	-4.2 PP

• Gross profit impacted by foreign currency effects, price increases for materials, mix effects and lower contribution margins due to decreased turnover
• EBIT also affected by expenses for changes to the Board of Management

Strong domestic market and growth in Eastern Europe

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

1 Czech Republic turnover 2017 includes contract manufacturing for third parties at our Czech production site, which expired as planned.

Household: positive development of cleaning cannot compensate decline in laundry care

2018 compared to 2017

		2017	2018	∆
Turnover	€ m	182.9	180.4	-1,4 %
Gross profit	€ m	88.7	82.8	-6.7 %
Segment EBIT	€ m	13.3	10.2	-23.3 %

Results Household segment

Turnover Household

2018 / by region

Highest turnover segment of the Group

Significantly higher turnover in the product category cleaning

Earnings affected a.o. by currency effects and higher material prices

Wellbeing – new Soehnle assortement as growth drivers

Results Wellbeing segment

2018 compared to 2017

		2017	2018	∆
Turnover	€ m	19.6	19.9	+1.2%
Gross profit	€ m	9.8	8.6	-12.4%
Segment EBIT	€ m	2.2	-0.3	-<100%

Turnover Wellbeing

2018 / by region

Turnaround due to turnover growth by 1.2 %

Decline in EBIT due to currency effects and onetime higher expenses for the Soehnle app

Strong growth recorded in Germany and Eastern Europe

Private Label – Focus on international accounts

Results Private Label segment

2018 compared to 2017

		2017	2018	∆
Turnover	€ m	34.3	33.9	-1.0%
Gross profit	€ m	11.4	10.7	-6.0%
Segment EBIT	€ m	3.3	3.2	-3.1%

Turnover Private Label

2018 / by region

Free Cash Flow improved but still too much impacted by working capital

in € m	2017	2018	∆
Cash flow from operating activities	7.2	10.2	3.0
Cash flow from investment activities	-10.7	22.5	33.2
Cash flow from financing activities	-13.8	-10.0	3.8
Change in cash and cash equivalents	-17.3	22.7	40.0
Cash and Cash equivalents at the end of reporting period	28.2	50.9	22.7
Free cash flow1	1.5	3.7	2.2

in € m	31.12.2017	31.12.2018	∆
Cash and Cash equivalents at the end of reporting period	28.2	50.9	80.5 %
Current financial assets	29.0	-	> -100 %
Group liquidity	57.2	50.9	-11.0 %
Financial liabilities	-	-	-
	57.2	50.9	-11.0 %

1 Sum of cash flow from operating activities and investment activities adjusted for financial assets.

Investments and continuous improvement of the product portfolio

Investments 2018:

• 6.3 € m (2017: 6.7 € m) in fixed assets mainly in tools and equipment
• € 0.3 m (2017: € 1.1 m) in intangible assets (mainly software/product and customer-oriented systems)
• Investment rate: 3.6 % (2017: 4.5 %)

Solid finance structure of the Group

Balance sheet ratios

in Mio. €

Continuous strong capital structure and financial flexibility

Equity/-ratio

31 December, in € m

42,5%

94.8

70

80

90

100

110

120

106.7

Cash, cash equivalents and short-term financial assets

31 December, in € m

Number of employees on stable level

Development Leifheit share

Leifheit share price performance Jan. 2018 – March 2019 compared to SDAX in % (indexed to 100

10-year performance of Leifheit share price compared to SDAX in % (indexed to 100)

Committed to shareholder returns - 1.05 € dividend proposed to the AGM

	Long-term dividend development	Dividend yield 2
	Dividend per share / in €	2018: 5,9 % 2017: 3,8 % 2016: 5,1 % 2015: 5,6 %	2014: 3,9 % 2013: 5,3 % 2012: 5,2 % 2011: 6,3 %
1,50		1 2018: 1.05 €
1,00
0,50
0,00	-1 4 5 6 7 8 9 0 2 3 4 5 6 7 8 9 1 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9	0 2 3 4 5 6 7 8 9 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2	2 3 4 5 6 7 8 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2
	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bonus/special dividend	Dividend

1 Proposal to the Annual General Meeting

2 Based on the particular closing price at year-end

Key strategic initiatives 2019

Trends and market environment offer attractive growth opportunities

Demographic change More private households, rising proportion of older population & higher quality orientation among young households	E-Commerce High growth rates for household goods & appliances (2016/2017: +26.5%)	Convenience Demand-oriented product innovation through systematic innovation and market introduction processes
Health Demand for well-being and healthcare products due to growing health awareness	Environment Durable high quality products	Digitalization and Connectivity High demand for battery-powered devices Connectivity of products and services

Key strategic initiatives

Strengthening strategy to consistently address growth themes

Interlock Online and Offline sales channels, establish Pan-European E-Commerce team, launch own web shop

Digitalization

Drive consumer
oriented product
innovations and
renewal of existing
portfolio

geographic expansion, Brand building activities especially in Eastern Europe

Increased efficiency and speed from processes and IT along the entire value chain

Efficiency

Internationalization

Innovation

Key strategic initiatives

Expansion of e-commerce activities through European platform

Investor and Analyst Meeting 28 March 2019

Key strategic initiatives

New Online-Shops to be launched in 2019

Internationalization: Increased investments in Eastern Europe

• Expansion of brands through targeted sales activities
• Focus on selected Eastern European markets with attractive growth opportunities
• Increased investments in Poland, Czech Republic, Romania and Slovakia
• Foundation of subsidiary in China for sales activities in Asia Pacific region

Anniversary Colour Edition

Investor and Analyst Meeting 28 March 2019 36

Investor and Analyst Meeting 28 March 2019 38

Soehnle Scales: Colour Editions 2019

Personal scales Style Sense Compact 200 Kitchen scales Page Compact 300

Investor and Analyst Meeting 28 March 2019 41

Forecast Financial Year 2019

Financial Forecast

2019: Leifheit targets turnover growth of 3 to 4 %

Economic environment 2019	Slowdown in growth due to increasing global and economic tensions ► Economic slowdown in the EU despite good domestic demand ► Retail trade growth in Germany weak ► European consumers' propensity to consume worsens ►
Forecast Group development 2019	Group: ► Household: Wellbeing: Private Label: EBIT of around € ► Free cash flow of about € ►	Turnover growth of about 3 to 4 % Turnover growth of about 2 to 3 % Turnover growth of about 11 to 12 % Turnover growth of about 3 to 4 % 9 m to € 10 3.5 m to € 4.5 m

Investment Highlights

Financial calendar and contact

Dates 2019

28 March 2019 Annual Financial Reports 2018 Analyst's meeting, Frankfurt/Main, Germany

14 May 2019 Quarterly statement Q1

29 May 2019 Annual General Meeting, Frankfurt/Main, Germany

13 August 2019 Financial report for the period ending 30 June 2019

12 November 2019 Quarterly statement Q3

Contact

Petra Dombrowsky Corporate Communications / Investor Relations

Phone: +49 2604 977-218 Email: ir@leifheit.com

www.leifheit-group.com

Long-term financial overview

		2014	2015	2016	2017	2018
Group turnover	€ m	220.7	231.8	237.1	236.8	234.2
Profitability
 Gross margin	%	47.7	46.7	47.5	46.4	43.6
 Cash flow from operating activities	€ m	24.5	20.8	21.8	7.2	10.2
 Free cash flow	€ m	18.4	14.1	14.3	1.5	3.7
 EBIT  EBIT adjusted1	€ m € m	21.5 16.4	21.7 19.2	22.1 21.8	18.8 20.3	13.1 12.8
 EBIT margin	%	9.8	9.3	9.3	8.0	5.6
 EBT	€ m	19.8	20.2	20.6	17.7	11.9
 Net result for the period	-1 € m	14.1	14.3	14.5	12.9	8.4
 ROCE	%	20.3	18.1	16.3	12.7	8.5

1 Adjusted by foreign currency results

Long-term financial overview

		2014	2015	2016	2017	2018
Per Share1
Net result for the period2	€	1.49	1.51	1.53	1.35	0.88
Free cash flow	€	1.94	1.48	1.51	0.16	0.39
Dividend	€	0.90	1.00	1.05	1.05	1.05
Special dividend	€	--	0.38	0.40	--	--
Investments	€ m	6.2	7.1	7.8	7.8	6.6
Depreciation	€ m	6.3	5.8	6.2	6.4	6.9
		31/12/14	31/12/15	31/12/16	31/12/17	31/12/18
Employees	No.	1,068	1,074	1,093	1,137	1.134
Balance sheet total2	€ m	223.3	237.9	239.4	224.9	221.8
Equity	€ m	94.8	106.7	104.6	98.5	101.8
Equity ratio	%	42.5	44.9	43.7	43.8	45.9
Liquidity	€ m	62.8	68.2	69.5	57.2	50.9

1 Scrip issue in June 2017, 2013 – 2016 adjusted

2 Not including repurchased treasury shares

Leifheit – 60 years of passion for housework

Significant free float and international investors

March 2018

1 Definition of German stock exchange for indices

2 Including shareholdings of the Management Board

• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Joachim Loh, Haiger (GER), 8.26%
• Leifheit AG Nassau (GER), treasury shares, 4.91%
• Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 8.23%
• DBAY Advisors Limited, Douglas (IM), 7,33 %
• MainFirst SICAV, Senningerberg (LUX), 5.04%
• Teslin Capital Management BV/Gerlin NV, Maarsbergen (NL), 5.05%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52 %
• Share ownership under reporting threshold 47,63 %

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau