Leifheit AG

Investor Presentation • Nov 11, 2021

Investor & Analyst Meeting

11 November 2021

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.

Executive Summary 9M 2021

Group turnover up 12% vs last year

Germany turnover up 20% vs last year

EBIT up 8.1% vs last year

EBIT at € 3.0 m in Q3 affected by distortions in the global supply chains

Gross margin down from 44.7% to 42.7%

Free cash flow soaring to € 7.1 m

Strong 9M 2021 – but distortions in the global supply chains weigh on EBIT in the third quarter

Good business performance in Q3 2021

• Successful TV campaigns in selected markets
• Normalization of consumer behavior compared with the prior-year period, which was significantly affected by COVID-19
• Group turnover in Q3 2021 only slightly below the exceptionally strong prior-year period

Nevertheless, distortions in global supply chains affect gross margin and EBIT in the third quarter

• Increasing supply bottlenecks and associated cost increases for many raw materials
• Significant rise in steel and plastic prices
• Tense situation in the sea fright sector

Earnings (EBIT) forecast adjusted on 13/10

• Group turnover increase of at least 5%
• Household up at least 6%, Wellbeing slightly below level of 2020, Private Label slightly above level of 2020
• EBIT between € 15 m and € 20 m
• Free cash flow between € 4 m and € 8 m

Leifheit makes top quality household products, designed in Germany

Profi Floor Wiper 4.7 stars

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

CLEAN TWIST 4.6 stars

5 Sterne	76%
4 Sterne	13%
3 Sterne	4%
2 Sterne	2%
1 Stern	4%

Pegasus 150 4.6 stars

5 Sterne	77%
4 Sterne	14%
3 Sterne	4%
2 Sterne	2%
1 Stern	3%

Linomatic 500 Deluxe 4.5 stars

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

Leifheit is financially solid and pays good dividends to shareholders

Strong financial structure in € m

Strong long-term stock performance

Implementation of Scaling up success strategy leads to significant higher level of turnover

Group turnover development by quarters in € m

• Q3 2021: Slight decline against the backdrop of prior-year's Corona special demand boost in Q3 + Q4
• Compared to pre-pandemic level of Q3 2019 sales increased strongly by +25% in Q3 2021

Implementation of Scaling up success strategy leads to significant higher level of turnover

• Q3 2021: Slight decline against the backdrop of prior-year's Corona special demand boost in Q3 + Q4
• Compared to pre-pandemic level of Q3 2019 sales increased strongly by +25% in Q3 2021

Double-digit growth in FY 2020 and 9M 2021

Group turnover development

in %

Investor and Analyst meeting November 2021

The strategy works. 2019 to 2021 guidance shows CAGRs of +11% on turnover and +33% on EBIT

0

50

100

150

200

250

300

Bottlenecks and enormous price increases for raw materials and shipping containers

Flat steel: +131% yoy Oct. 2020/2021

Aluminium (LME): +76% yoy Oct. 2020/2021

Stainless Steel: +77% yoy Oct. 2020/2021

Seafreight: +599% yoy Oct. 2020/2021

Packaging: +57% (Testliner) yoy Sept. 2020/201

ABS plastics: +65% yoy Oct. 2020/2021

Operating result (EBIT) increase by 8.1% in 9M 2021 despite burdens in the third quarter, gross margin 2 pps down yoy

	9M 2020	9M 2021	∆
Group turnover € m	201.9	226.0	11.9 %
Gross margin %	44.7	42.7	-2.0 pps
Foreign currency result € m	-0.6	0.6	> 100 %
EBIT € m	15.4	16.6	8.1 %
EBIT margin %	7.6	7.3	-0.3 pps
Earnings before taxes (EBT) € m	14.6	16.0	9.6 %
Net result for the period € m	10.6	11.5	8.8 %
EPS €	1.11	1.21	9.0 %

• Distortions in global supply chains and significant price increases for production materials and incoming freight affected gross margin and EBIT
• However, EBIT margin only slightly below prior-year period due to strict cost management

Measures to improve working capital are paying off, inventory value up due to procurement price effects

in € m	Q3 2020	Q3 2021	∆
Cash flow from operating activities	4.6	11.2	6.6
Cash flow from investment activities	-4.9	-4.0	0.9
Cash flow from financing activities	-0.5	-10.3	-9.8
Free cash flow1	-0.3	7.1	7.4
in € m	31/12/2020	30/09/2021	∆
Cash and cash equivalents at the end of reporting period	38.8	35.6	-3.2
Financial liabilities	-	-	-

• Improved free cash flow mainly due to increase in cash inflow from operating activities by
  • rise in net result for the period and
  • significantly lower rise in receivables and inventories compared to the previous-year period
• Inventories up by € 2.7 million compared with 1/12/2020: although reduction in inventory volumes, inventory value increased in particular due to higher procurement prices, raw material inventories up by € 5 million compared with 1/12/2020
• Cash flow from financing activities includes dividend payout of € 10 m. In 2020 dividend was paid out in October.

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.

Investor and Analyst meeting November 2021

Measures to improve working capital are paying off, inventory value up due to procurement price effects

liabilities

treasury shares

cash equivalents 30.09.2021

• No noteworthy effects from aging of receivables in connection with COVID-19
• Rise in trade receivables due to customer mix effects

the period

and amortization receivables

cash equivalents 31.12.2020

Group liquidity

Our purpose? Happy consumers!

We call our strategy "Scaling up success"

Create consumer demand and make brands stronger 1

Peer group comparison Marketing spend and EBIT

in % of turnover

EBIT margin

¹ Source: Annual reports 2020

In 2020 we tested massive advertising spend in several countries with strong results 1

Turnover development selected TV markets

Group turnover 2020 in € m

Scaling-up TV advertising to France and Italy successful in 2021 1

Turnover development selected TV markets

Group turnover 9M 2021 in € m

Encouraged by strong results in TV advertising test countries we took the approach to our #1 market Germany 1

New strategy led to positive turnaround in Germany away from the recent downward trend 1

Group turnover development in Germany

in %

-14

-4

6

16

26

36

46

¹ Encouraged by strong advertising results on brand Leifheit, we scaled up this approach to Soehnle

-18

-13

-8

-3

2

7

12

17

22

27

Turnover development Soehnle scales product category

• Print campaign in H2 2021 focuses on

• TV campaign in H1 2021 focused on

against the backdrop of prior-year's Corona special demand boost in H2.

scale, also rated "very good".

Soehnle Page Profi 300 digital kitchen scale, which was awarded with "very

in %

good" test result.

We are successfully expanding our distribution network 2

Permanent listings in

1,200

additional supermarkets in the DACH region

International expansion: German heritage products are ranked # 1 for consumers in terms of positive image 2

Rank	Country	Index
1	Deutschland	100
2	Schweiz +	98
3	Europäische Union	92
4	Großbritannien	91
5	Schweden	90
б	+ Kanada	85
7	Italien	84
8	● apan	81
00	Frankreich	81
8	印言 USA	81
11	Finnland	77
11	Norwegen	77
13	Niederlande	16
14	Australien	75
15	Neuseeland	73
15	Dänemark 1 F	73
20	Spanien 1 F	64
30	Argentinien 1 F	42
42	Indien	36
10	China	00

Source: Statista Made-In-Country-Index 2017

• Germany leads the Made-in-Country-Index
• The global ranking according to the Made-In-Country-Inde shows how positively products "Made in ..." from the respective country are perceived worldwide.

We need to compensate growing raw material and cargo cost with price increases in order to improve gross margins again 4

% of Group turnover	FY 2018	FY 2019	FY 2020	9M 2020	9M 2021	Change
Consumer marketing	0.7%	1.7%	5.5%	4.7%	6.5%	✓ +1.8 pp
Other marketing	5.4%	4.6%	3.6%	3.8%	2.7%	✓ -1.0 pp
R&D	2.3%	2.4%	2.1%	2.0%	1.9%	✓ -0.1 pp
Logistics1	11.0%	11.5%	10.5%	9.9%	9.5%	✓ -0.4 pp
Administration	6.1%	6.4%	5.4%	5.8%	5.0%	✓ -0.8 pp
Cost of turnover	56.4%	56.8%	55.0%	55.3%	57.3%	+2.0 pp
OPEX2 adj. by Consumer marketing	94.2%	94.7%	87.7%	87.8%	86.9%	✓ -0.9 pp
OPEX2	94.9%	96.4%	93.2%	92.6%	93.4%	+0.8 pp

¹ Not including inbound cost ² Without other operating income/expenses

Investor and Analyst meeting November 2021

If new strategy enabled 10% sales CAGR, then there would be a temporary sales decline in H2 2021 against the backdrop of a Corona special boost in H2 2020. In H2 2022 sales would return to +10% CAGR.

Turnover development July - December

Leifheit Group in € m

EBIT forecast 2021 adjusted

	Forecast 2021
Group turnover	at least +5%
Turnover Household	at least +6%
Turnover Wellbeing	Slight decrease (prev. at least +7%)
Turnover Private Label	Slight increase
Group EBIT	€m 15 – 20 (prev. €m 20 – 24)
Free Cashflow	€m 4 – 8 (prev. €m 10 – 14)

• Free Cashflow forecast adjusted against the background of adjusted earnings forecast and ongoing challenges in the supply chain
• Increase of working capital expected:
  • Increase in inventories due to price effects and necessary higher stockpiling, especially of raw materials to secure delivery ability
  • Decline of trade receivables

Growth in Household and Wellbeing segments continued following large-scale advertising

161.3 182.6 18.5 22.1 19.8 23.6 0 50 100 150 200 250 9M 2020 9M 2021 Private Label Wellbeing Household 201.9 Group turnover by segment 9M 2020 vs 9M 2021 in € m 226.0

Group turnover by segment 9M 2021

• Turnover in Household segment up by 13.2%, strong growth especially in product category Cleaning due to successful TV campaigns and consumers' increased need for hygiene.
• Wellbeing segment increased by 6.7%, continuously strong demand for Soehnle kitchen scales, significant decrease in sales figure for air purifiers.
• Private Label increased by 6.9% largely due to strict Covid-19 retail closures in France in the previous year's period and pipeline filling effects due to distribution expansion.

Continued strong turnover growth in Germany through successful TV advertising campaigns

85.0 82.9 24.8 9.2 102.0 90.4 27.5 6.1 0 20 40 60 80 100 120 Germany Central Europe Eastern Europe Rest of the World Group turnover by region 9M 2020 vs 9M 2021 in € m 2020 2021 Germany 2020 2021 Central Europe 2020 2021 Eastern Europe 2020 2021 Rest of the world

Group turnover by region

9M 2021

• Growth trend in Germany: 20.0% growth following TV campaigns for Leifheit products as well as for Soehnle brand.
• Central Europe with strong growth of 9.1%. In particular, important markets in France and Italy grew significantly due to increased marketing activities.
• Eastern Europe with turnover increase of 10.6%. In Czech Republic and Poland, the strongest markets in this region in terms of turnover, double-digit growth was achieved mainly due to increased marketing activities.

Leifheit Group structure

Our European production footprint ensured reliable supply to customers in spite of COVID-19 challenges in the supply chain

Distribution in all relevant distribution channels

Blue Chip client base Distribution channels

Turnover 2020 in % (previous year's figures)

Number of employees at a stable level

Long-term financial overview

		2016	2017	2018	2019	2020
Group turnover	€ m	237.1	236.8	234.2	234.0	271.6
Profitability
▪ Gross margin	%	47.5	46.4	43.6	43.1	45.0
▪ Cash flow from operating activities	€ m	21.8	7.2	10.2	15.9	4.0
▪ Free cash flow	€ m	14.3	1.5	3.7	10.1	-5.5
▪ EBIT EBIT adjusted1 ▪	€ m € m	22.1 21.8	18.8 20.3	13.1 12.8	9.9 9.6	18.8 19.7
▪ EBIT margin	%	9.3	8.0	5.6	4.2	6.9
▪ EBT	€ m	20.6	17.7	11.9	8.5	17.7
▪ Net result for the period	€ m	14.5	12.8	8.4	5.8	12.5
ROCE2 ▪	-1 %	16.3	12.7	10.5	8.2	14.1

¹ Adjusted by foreign currency results

² Definition of ROCE changed in 2019, ROCE 2018 adjusted for comparability reasons

Long-term financial overview

		2016	2017	2018	2019	2020
Per share1
Net result for the period, EPS2	€	1.53	1.35	0.88	0.61	1.32
Free cash flow	€	1.51	0.16	0.39	1.06	-0.57
Dividend	€	1.05	1.05	1.05	0.55	1.05
Special dividend	€	0.40	--	--	--	--
Investments	€ m	7.8	7.8	6.6	6.0	9.6
Depreciation	€ m	6.2	6.4	6.9	8.2	8.5
		31/12/16	31/12/17	31/12/18	31/12/19	31/12/20
Employees	No.	1,093	1,137	1,119	1,106	1,089
Balance sheet total2	€ m	239.4	224.9	221.8	214.6	230.0
Equity	€ m	104.6	98.5	101.8	96.2	100.4
Equity ratio	%	43.7	43.8	45.9	44.8	43.7
Liquidity	€ m	69.5	57.2	50.9	50.3	38.8

¹ Scrip issue in June 2017, 2013 – 2016 adjusted

²²Not including repurchased treasury shares

Experienced Management

Henner Rinsche CEO

Previous experience

• President Europe at SodaStream
• Various leading positions at Procter & Gamble, PepsiCo, Danone and Henkel

Core competencies

• General management and consumer goods marketing

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 " crum" 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

Committed to shareholder returns

	Long-term dividend development						Dividend yield 1
ividend per share / in €								2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 2014: 3.9% 2018: 5.9% 2013: 5.3% 2017: 3.8%
1,50
						Dividend for							2020: € 1.05
1,00
0,50
0,00	4 5 8 8 9 9	6 8 9	7 8 8 8 9 9	9 8 9	0 9 9	91 9	2 9 9	3 9 9	4 9 9	5 9 9	6 9 9	7 9 9	8 9 9	9 9 9	0 0 0	01 0	2 0 0	3 0 0	4 0 0	5 0 0	6 0 0	7 0 0	8 0 0	9 0 0	0 01	1 01	2 01	3 01	4 01	5 01	6 01	7 01	8 01	9 01	0 2 0
	1 1	1	1 1	1	1	1	1	1	1	1	1	1	1 Bonus/special dividend	1	2	2	2	2	2	2	2 Dividend	2	2	2	2	2	2	2	2	2	2	2	2	2	2

¹ Based on the particular closing price at year-end

Soehnle awards (selection)

Kitchen Scales Page Profi + Page Profi 300

Personal Scales Style Sense Compact 300 + Safe 300

Air Humidifier Airfresh Hygro 500

Body analysis scales Shape Sense Connect 100 + 200

Blood pressure monitors Systo Monitor 200 + 300

Air Purifier AirFresh Clean 300 and Clean Connect 500

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 Rösle	WMF	Gefu	Bosch		Laica	Tanita
	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 • Joachim Loh, Haiger (GER), 10.31%

• MKV Verwaltungs GmbH, Grünwald (GER), 10.03%
• Leifheit AG Nassau (GER), treasury shares, 4.87%
• Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 15.42%
• Teslin Capital Management BV/Gerlin NV, Maarsbergen (NL), 5.05%
• MainFirst SICAV, Senningerberg (LUX), 5.02%
• The Capital Group Companies, Inc., Los Angeles (USA), 5.02%
• Blackmoor Ownership Holdings Master Limited, London (UK), 3.52%
• Voting rights under notification threshold: 40.76%

Financial calendar and contact

Dates 2021/2022	Contact
23 - 24 Nov 2021 German Equity Forum 29 March 2022 Annual Report 2021	Corporate Communications / Investor Relations Phone: +49 2604 977-218 Email: ir@leifheit.com
11 May 2022 Quarterly statement for the period ending 31 March 2022	www.leifheit-group.com
25 May 2022 Annual General Meeting
09 Aug 2022 Financial report for the first half-year ending 30 June 2022
08 Nov 2022 Quarterly statement for the period ending 30 September 2022

Our ESG Principles: long-lasting products as essential aspect of sustainability

Investor and Analyst meeting

Sustainability means for us responsibility towards environment and people, corporate integrity and finally: long-lasting and high-quality products.

Environment

• Providing durable, longlasting and high-quality products

• Efficient use of resources without any compromises on quality
• European production and logistics footprint with close proximity to customers
• Compliance with applicable regulations, guidelines and laws in manufacturing (such as WEEE, RoHS, REACH, PAH, Ecodesign irective…)
• Strict environmental standards in our supply chain laid down in Code of Conduct for suppliers

Social

• Fun, friendly, fast and fearless corporate culture
• HR strategy centers on employee attractiveness
• Safety and health of our workforce
• Welcome diversity and offer equal opportunities
• Fair and competitive remuneration, training and education
• Strict social standards in our supply chain laid down in Code of Conduct for suppliers
• Social commitment at our locations

Governance

• Focus on responsible Corporate Management and Compliance

• High transparency to stakeholders with quarterly reporting, conference calls and regular news updates
• Compliance Management System (CMS) including guidelines and measures to ensure ethical behavior in line with regulations
• Combating corruption and bribery as integral part of CMS
• Protection of personal data in line with the high standards of the German data protection law DSGVO

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

Sep 2020 Deutschland Test / Focus Money

1 st place Home appliances 100.0 points

Study examines what companies do for their employees and society. Among other things, the sustainability reports of the largest German companies were evaluated according to the GRI standard.

Germany's Most Sought-after Products & Services

Jan 2020 IMWF Institut / FAZ-Institut

2 nd place Household items 99.5 points

Study analyses social listening data in 438 million online sources for over 20,000 companies. Relevant criteria include quality, customer satisfaction and value for money.

st place 5 th place

1

Household items 100.0 / 86.2 points

Study looks at customer statements for 17,000 brands from 280 industries regarding reliability, quality, trust and recommendations in 438 million online sources and thus makes a comprehensive assessment of customers' trust in companies.

Germany's Best Customer Hotline

Aug 2020 IMWF Institut / FAZ-Institut

1 st place Home appliances 100.0 points

Study analyses social listening data for over 20,000 companies in the categories customer service and satisfaction, hotline, price and service. 438 million online outlets serve as a source.

Aktiengesellschaft

Postfach 11 65 D-56377 Nassau