Information on agenda item 6 – Remuneration report for financial year 2024 (EN 08 annual report2025)

LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE. 2025

Annual report

To our shareholders

Combined management r eport

Consolidated financial statements Further information

KEY FIGURES OF THE GROUP

Annual report 2025

1 Special items from a strategic optimisation project in production.

2 Not including treasury shares.

002

3 Dividend proposal.

m€ 232.6

Group turnover

m€ 11.6

EBIT before special items

45.7%

Gross margin

before special items

m€ 6.4

Leifheit Group

Free cash ffow

To our shareholders

CONTENTS

Combined management r eport

Consolidated financial statements

Further information

003

Leifheit Group

Annual report 2025

Combined management report

To our shareholders

Vision & Strategy

Combined management r eport

VISION & STRATEGY

In order to shape the future of Leifheit with sustainable success, we are focussing on the implementation

of our new corporate strategy for the Group.

It has as its motto

Our vision is our strategic target

for the future.

OUR VISION

We are the European branded leader and specialist in mechanical cleaning and drying - with highest consumer satisfaction, an entrepreneurial culture and a sustainability mindset.

Consolidated financial statements

Further information

Our mission statement is based on the

roots of our company.

MISSION STATEMENT

OUR IDEAS TO MAKE YOUR LIFE EASIER.

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Leifheit Group

Annual report 2025

LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE.

To our shareholders

Vision & Strategy

Combined management r eport

Consolidated financial statements Further information

The strategic realignment is aimed at profitable growth and cost efficiency.

GROWTH

EFFICIENCIES

CORE VALUES

OUR STRATEGY

LEADING WITH FOCUS.

BRAND

POSITIONING

FOCUS

COMPANY

CREATING SUSTAINABLE VALUE.

GROWTH DRIVER

FOCUS

CATEGORIES

VALUE

OPTIMISATION

EFFICIENT

MAXIMISE

POS

E-COMMERCE

INNOVATION

FOCUS

MARKETS

DIGITALISATION

- Modern brand positioning of the Leifheit brand and integrated, multimedia brand activation with strong reach momentum right up to the Point of Sale.

EFFICIENCY DRIVER

• Focussing the company on drying and mechanical cleaning and clear strategies for kitchen goods, Soehnle, Birambeau and Herby for sustainable success.

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  Leifheit Group

  Annual report 2025

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  Our core values of trust, courage, integrity and ambition reflect the values and behaviours to which we aspire in everything we do.

  • Concentration on our focus categories of mechanical cleaning and drying; this is where we see high growth potential.

    ORGANISATION

  • Focussed portfolio approach to strengthen our

    international sales markets

    and increased internationalisation.

  • Strong focus on innovation for growth and profitability, based on a deep understanding of the consumer.

  • New e-commerce and digital model as a growth accelerator and model for success.

• Transformation and digitalisation of processes along the entire value chain.

• Value optimisation through cost, process and product range optimisation for improved profitability.

• Lean, efficient organisational structures with greater international cooperation, talent identification and personnel development.

• Exploiting potential through integrated communication at the Point of Sale - online and in stores.

‌OUR EVERYDAY HELPERS CREATE VALUE

Board of Management interview

The Leifheit Group is strengthening its earning power through a clear strategic focus and structural efficiency - especially against the backdrop of a challenging market environment. In the following interview, the three members of the Board of Management explain how the company improved its operational performance in financial year 2025 and their priorities for the next phase of strategy implementation.

Igor Iraeta Munduate

COO

Marco Keul

CFO

Alexander Reindler

006

CEO

To our shareholders

Interview with the Board of Management

Combined management r eport

Consolidated financial statements Further information

Alexander Reindler

Chair of the Board of Management, CEO

Alexander Reindler has been Chair

of the Board of Management of Leifheit AG since 1 December 2023. As Chief Executive Officer (CEO), he is responsible for Marketing, Sales, Development, Human Resources, Legal/IP and the Birambeau and Herby private label business.

Our strategy is proving effective, even under challenging conditions. We are on the right track."

"

Mr Reindler, how do you look back on 2025?

Alexander Reindler: Overall, the picture for 2025 was mixed. We made further progress in implementing our Group strategy and successfully pushed ahead with our strategic transformation, both of which are certainly positive. This has enabled us to further improve the Group's operational efficiency and make important progress towards increasing value in the long term.

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Leifheit Group

Annual report 2025

At the same time, our business performance in 2025 was significantly impacted by a sluggish market environment, pronounced consumer restraint in the non-food sector in our core markets and strategic adjustments to our product range. In our core business, which comprises mechanical cleaning and laundry care - a sector that has proved relatively resilient - we have not yet succeeded in offsetting the anticipated declines outside our core business in the past financial year, despite targeted initiatives.

On the whole, we are not satisfied with the trend in our turnover and are therefore implementing far-reaching new growth initiatives as part of the next phase of our strategy.

Has the Group's strategy proved successful so far?

Reindler: Yes, definitely. Our strategic efficiency and growth drivers are fundamentally sound and are providing additional impetus to our business. A prime example of this is the recently launched new product SUPERDUSTER, which has helped to significantly boost growth in the dust removal market segment. Since the start of 2026, we have been further expanding our marketing activities in our core categories of mechanical cleaning and laundry care as part of the relaunch of the Leifheit brand. They offer the greatest potential for sustainable, profitable growth in the medium term.

At the same time, we always focus our activities on current market conditions, which continue to prove very challenging. Despite being unable to match the previous year's profit levels due to the decline in turnover, we have further improved our efficiency in this environment by continuing to enhance our internal processes. Our new FOCUS performance program will help us to achieve further efficiency gains.

To our shareholders

Interview with the Board of Management

Combined management r eport

Consolidated financial statements

"

Our initiatives in production and logistics are designed to further improve our efficiency and resilience."

Mr Iraeta Munduate, what operational developments have been at the forefront at Leifheit recently?

Igor Iraeta Munduate: All in all, over the past year we have succeeded in streamlining the Leifheit Group's organisational structure and making it more operationally efficient. The focus was on optimising costs, processes and product ranges along the entire value chain. In this context, for example, we have optimised our production using the pull principle. The key goal here is to manage our production in a way that is even more driven by demand and thereby further reduce our inventory levels.

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Leifheit Group

Annual report 2025

A key project undertaken during the reporting period was the concentration of injection moulding production at the Czech production location in Blatná. This enabled us to further bundle our technological expertise and improve our capacity utilisation. Overall, this strategic optimisation project has enabled us to strengthen both our own manufacturing operations and our European footprint. By implementing such initiatives in production and logistics, we are working to better integrate our processes and make them even more effective overall - thus continuing to boost our efficiency and resilience.

How exactly does increased production in Europe contribute to resilience?

Iraeta Munduate: By stepping up production in Europe, we can further reduce our dependencies, stabilise our supply chains and make our business model even more robust overall. We are working continuously to further consolidate our value chain in Europe. We already manufacture more than 75% of our core business turnover at our own European production facilities.

As part of our procurement strategy, we are also pursuing the goal of further increasing the proportion of European suppliers in the medium term. This enables us to specifically reduce risks from procurement regions with long delivery times and transport routes and make our supply chains even more future-proof. A robust European manufacturing and supplier base, combined with a consistent focus on quality, is a key element in further strengthening the Leifheit Group's resilience.

This approach is becoming increasingly important, especially against the backdrop of rising trade conflicts, geopolitical tensions and the current escalation in the Middle East. It enables us to significantly mitigate potentially negative impacts - such as higher tariffs resulting from trade disputes or increasing energy, procurement and transport costs - even if they cannot be avoided entirely.

Further information

Igor Iraeta Munduate

Member of the Board of Management, COO

Igor Iraeta Munduate has been a member of the Board of Management of Leifheit AG

since 1 November 2018. As Chief Operations Officer (COO), he is responsible for the Procurement, Production, Logistics and Quality Management.

To our shareholders

Interview with the Board of Management

Combined management r eport

Consolidated financial statements Further information

Marco Keul

Member of the Board of Management, CFO

Annual report 2025

Marco Keul has been a member of the Board of Management of Leifheit AG since 1 May 2021. As Chief Financial Officer (CFO), he is responsible for Finance, Controlling, Business Processes/IT and Internal Sales.

Leifheit stands for strong dividends and a shareholder-friendly capital allocation."

"

Mr Keul, are the measures mentioned already reflected in the key financial figures?

Marco Keul: Yes, absolutely. We can see from the figures for 2025 that our measures are working on an operational level. We succeeded in reducing our costs, improving our margin and, despite the decline in turnover, achieving an EBIT before special items that was only slightly below the previous year's level.

We expect the implementation of the SAP S/4HANA ERP system, which we began last year, to generate further efficiency gains. This will make it easier to manage, automate and evaluate business processes in future. Ultimately, the system helps us to both further standardise and streamline our processes while also scaling our capacities more easily.

A look at the results for 2025 makes it abundantly clear that Leifheit remains on a solid financial footing. We have solid liquidity, no bank loans and a robust free cash flow.

Leifheit Group

I also firmly believe that our efficiency measures will have a positive impact on earnings in 2026. Essentially, the measures we are taking lay the foundations for long-term profitable growth.

In financial terms, what is of particular importance to Leifheit currently?

Keul: Our strategy fundamentally aims to deliver continuous improvement in return on capital employed (ROCE) and working capital. Building on our sound financial position, we intend to generate value for shareholders on a continuous basis by means of a balanced allocation of capital - even in a volatile market environment such as that of 2025. Over many years, Leifheit has consistently demonstrated a strong track record in terms of dividends as well as a transparent and reliable dividend policy. We place great importance on shareholder value and intend to propose to the Annual General Meeting an attractive dividend plus a special dividend totalling

€ 1.20 per dividend-entitled share for the financial year 2025 - this would correspond to a dividend yield of 7.9%.

What will be a particular focus for Leifheit in 2026?

Reindler: We will be focussing primarily on a comprehensive relaunch of the Leifheit brand, which will be accompanied by a significant step-up in marketing activities, particularly in the first half of 2026, in order to stimulate growth. In this context, we are focussing on a more sharply defined brand positioning with a clear consumer focus and aim to achieve a better positioning at Point of Sale, both online and offline. A good example of this is the recent relaunch of our ironing boards, in which we aim to highlight their benefits to consumers even more clearly via a modern brand identity.

009

Our brand relaunch will also go hand in hand with further product innovations. As with our marketing measures, the focus in this regard will be on the core categories of mechanical cleaning and laundry care. By clearly prioritising our core categories, we aim to further strengthen our resilience by 2026 and boost demand in our core European markets.

To our shareholders

Interview with the Board of Management

Combined management r eport

Consolidated financial statements

"

In the next phase of the strategy, we will take Leifheit a step further with an extensive brand relaunch and the new FOCUS performance program."

Aside from the brand relaunch in 2026, are there any other projects that you consider to be of particular strategic importance?

Annual report 2025

Reindler: Our Group strategy is fundamentally geared towards a lean cost structure, clearly defined focus areas and sustainable profitability. In doing so, we aim to continuously increase our financial strength and resilience by means of, among other things, efficiency programs and process and structural optimisations at the operational level. In the years ahead, it will be essential for Leifheit to remain an adaptable, agile organisation to enable it to act swiftly and decisively, even when faced with volatile conditions.

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Leifheit Group

To meet this objective, we launched the Group-wide FOCUS performance program in the first quarter of 2026. The project builds on our previous efficiency measures and sets an important course for the future. The objective is to streamline structures and end-to-end processes further in order to reduce costs in the long term, increase agility and speed, whilst at the same time aligning the

company's structures with future growth. It is designed to safeguard our long-term competitiveness and future viability and have a measurable and positive long-term impact on our earnings performance.

What are your expectations for the current year?

Reindler: The measures we have introduced enable us to effectively address the currently significant additional risks arising from the global economic environment. These include, in particular, the consequences of the escalation of the war in the Middle East and the associated sharp increases in energy, raw material and transport costs.

Despite these headwinds, we expect slight growth in Group turnover for 2026 and Group EBIT roughly in line with the previous year. This is based on the cost-cutting and efficiency measures already implemented. The positive effects of these measures are being utilised specifically to finance additional growth initiatives - primarily through increased marketing activities in the first half of the year. We also expect free cash flow to remain at the previous year's level.

We are confident that, even under challenging conditions, we will increasingly reap the benefits of our consistent focus strategy in the future. In line with our strategic focus, we will be rigorously pursuing cost efficiency and profitable growth in the years ahead. Our vision remains clear: our goal is to be the European branded leader and specialist in mechanical cleaning and laundry care, with the highest level of consumer satisfaction, an entrepreneurial culture and a sustainability mindset. Therefore, we will continue to take decisive actions as we pursue our ambitious goals.

Further information

‌REPORT OF THE SUPERVISORY BOARD

Financial year 2025 was once again defined by a challenging and volatile market environment. The Leifheit Group faced a variety of challenges due to global economic uncertainty, geopolitical tensions and subdued consumer spending in key markets. In parallel, the Leifheit Group began implementing the holistic Group strategy developed in 2024, "LEADING WITH FOCUS. CREATING SUSTAIN-

ABLE VALUE." By clearly focussing on our core categories and markets in Europe and consistently aligning our product portfolio with our core technological expertise, we have created the essential prerequisites for further increases in competitiveness and sustainable, profitable growth. The Supervisory Board was consistently involved in strategically relevant decision-making processes from an early stage and provided support during the implementation of the strategy. For more details on the strategy, see the "Foundations of the Group" section of the combined management report.

The Supervisory Board supported the Board of Management with constructive and critical advice and has fulfilled all the duties assigned to it by law, the articles of incorporation and the rules of procedure. The Board of Management kept us informed of business

Dr Günter Blaschke

compliance and cybersecurity. The remuneration system is the subject of regular discussion and review by the Supervisory Board in connection with concluding and extending Board of Management contracts.

The Supervisory Board held eleven meetings in financial year 2025. Four of the meetings were held as video conferences, five were held in person and two were hybrid meetings. The members of the Board of Management took part in Supervisory Board meetings except on occasions when it was considered appropriate for the Supervisory Board to discuss individual issues, such as personnel matters relating to the Board of Management, without the Board of Management being present. Supervisory Board meetings also regularly included agenda items that provided an opportunity for discussion without the Board of Management.

The Chair of the Supervisory Board regularly communicated with the Board of Management, both in person and by telephone. He informed the other members of the Supervisory Board promptly of the results of these discussions. The regular self-evaluation of the

developments, strategic measures, corporate planning, the risk effectiveness of the Supervisory Board and of its committees was

Leifheit Group

Annual report 2025

situation and transactions requiring approval at all times, in writing and verbally, in a timely and detailed manner. The Supervisory Board was directly involved at an early stage in all decisions of fundamental importance to the company. The Supervisory Board made all decisions after thoroughly examining and verifying the plausibility of the corresponding resolutions proposed by the Board of Management. The members of the Supervisory Board had sufficient opportunity within the committees and in the plenary to thoroughly examine the reports and decisions proposed and put forward their own suggestions.

Chair of the Supervisory Board

The Supervisory Board carefully and consistently monitored the management activities of the Board of Management and regularly advised it on its management of the company. We were always satisfied with the lawfulness, appropriateness and correctness of the Board of Management's work. The Board of Management used the risk management system in operational, financial and sustainability-related matters and was assisted in the process by the Finance, Controlling, Legal Affairs and Auditing departments. We were regularly and comprehensively informed of risks and opportunities,

conducted in spring 2025. It revealed that the requirements for efficient work are being met.

In the reporting period, there was no indication of conflicts of interest among the members of either the Board of Management or the Supervisory Board that would have required immediate disclosure to the Supervisory Board and reporting to the Annual General Meeting.

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The Chair of the Supervisory Board held discussions with a range of investors on issues relating to the Supervisory Board, in accordance with the recommendation of the German corporate governance code (GCGC).

The members of the Supervisory Board are responsible for completing any training and professional development measures that are required in order to perform their duties. The company provides suitable assistance to members of the Supervisory Board in exercising their duties as well as in taking part in training and educational measures. No training courses were held in 2025.

Changes in Leifheit AG organs

There were no changes within the organs of Leifheit AG in financial year 2025.

The Chair of the Supervisory Board, Dr Günter Blaschke, informed the company in January 2026 that he would be stepping down from his role as a member of the Supervisory Board and Chair of the Supervisory Board with effect from the end of 30 April 2026 for personal reasons. Larissa Böhm has also stepped down from her position with effect from 31 March 2026. The Supervisory Board will address the matter of Dr Blaschke's and Ms Böhm's succession and is confident that it will be in a position to propose two candidates to the Annual General Meeting on 3 June 2026 for election to the vacant seats on the Supervisory Board.

Supervisory Board meetings

Leifheit Group

Annual report 2025

The members of the Supervisory Board participated as follows in the meetings held in financial year 2025:

Important topics discussed at meetings

Regular discussions at ordinary Supervisory Board meetings covered the current business situation and earnings performance of the Group as well as the segments, the financial position, the business situation of the main interests, the strategic focus of the company, the risk situation and cybersecurity. In financial year 2025, the Supervisory Board discussed and passed resolutions on personnel matters relating to the Board of Management at multiple meetings.

The Supervisory Board also addressed the following topics:

• On 14 February 2025, the Supervisory Board addressed the revision and simplification of the long-term variable remuneration for the Board of Management and the Supervisory Board and the achievement of the modifier for the short-term variable remuneration of the non-financial targets for the Board of Management for 2024.

• At the meeting on 18 March 2025, the Supervisory Board approved the new remuneration system for the Board of Management and set the targets for the Board of Management's long-term variable remuneration for financial year 2025. The Supervisory Board also approved the proposal to the Annual General Meeting for long-term variable remuneration for the Supervisory Board. The Board of Management remuneration system and the long-term variable remuneration for the Super-

  visory Board were approved by the Annual General Meeting on 28 May 2025.

• At a special meeting on 25 March 2025, the Board of Management and Supervisory Board approved the proposal to the Annual General Meeting on the appropriation of balance sheet profit for financial year 2024.

• At its meeting on 7 April 2025, the Supervisory Board, in the presence of the auditor, intensively discussed and reviewed the consolidated financial statements and the annual financial statements, the combined management report of Leifheit Aktiengesellschaft and the Leifheit Group, the non-financial Group report, the remuneration report, the resolution regarding the report of the Supervisory Board and the agenda for the 2025 Annual General Meeting. The Supervisory Board approved the audited annual financial statements of the Leifheit Group and Leifheit AG and adopted the annual financial statements of Leifheit AG. Furthermore, the implementation of the focus strategy, investor relations activities and organisational changes in innovation and development and the associated changes to the Board of Management's schedule of responsibilities were discussed.

• The Audit Committee's report on the quarterly financial statements and the quarterly statement were discussed on 5 May 2025.

• Following the Annual General Meeting on 28 May 2025, the Supervisory Board discussed the results of the employee survey, the focus strategy and the findings of the Supervisory Board's efficiency audit.

  Member/meeting	Supervisory Board	Audit Committee	Personnel Committee	Nominating Committee	Sales/Marketing Committee	Product Range/ Innovation Committee
  Dr Günter Blaschke	11/11	6/6	4/4	-	2/2	2/2	-
  Rüdiger Böhle	11/11	6/6	-	-	-	-
  Larissa Böhm	11/11	6/6	3/4	-	2/2	-	-
  Stefan De Loecker	11/11	31	4/4	-	2/2	2/2
  Alexander Keul	11/11	-	-	-	-	-
  Thomas Standke	11/11	-	-	-	-	2/2
  1 Guest.

• At an extraordinary meeting of the Supervisory Board on 17 June 2025, the Supervisory Board discussed the Board of Manage-ment's proposal to relocate injection moulding production from Nassau to the Czech plant in Blatná and approved this strategic optimisation project.

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  On 5 August 2025, the Supervisory Board discussed the business development in the first half-year and the half-year financial report. The Chair of the Product Range/Innovation Committee and the Sales/Marketing Committee reported on the content and results of the committee meetings at the meeting on 23 September 2025. The Supervisory Board approved the proposed new brand

  positioning and long-term innovation and sustainability strategy for products. Cost-cutting measures were addressed as part of business development. The Board of Management also reported on the implementation of the strategy and the potential analysis of managers and personnel development. Among other things, the Board of Management provided information on the status of the optimisation project in production and the implementation of the SAP S/4HANA ERP software. The Supervisory Board also dealt with corporate governance.

  • The Audit Committee's report on the quarterly financial statements and the quarterly statement was discussed at the meeting on 4 November 2025. The Supervisory Board approved the Board of Management's resolution to redeem treasury shares and reduce capital accordingly.

  • The meeting on 4 December 2025 addressed the budget planning for 2026 and medium-term planning for 2026 to 2028. In addition, the meeting dealt with the resolution on the declaration of conformity with the GCGC, the Board of Management's reporting on material ESG impacts, opportunities and risks and the status of ESG reporting, the preparation of the 2026 Annual General Meeting, the selection of the auditor for financial year 2026, the preparation of the Supervisory Board's efficiency audit and the setting of targets for the variable remuneration of the Board of Management for financial year 2026.

Work of the committees

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Leifheit Group

Annual report 2025

The Supervisory Board has established an Audit Committee, Personnel Committee, Nominating Committee, Sales/Marketing Committee and Product Range/Innovation Committee. The five committees are primarily tasked with preparing decisions and topics for the Supervisory Board's plenary meetings. The committee chairs provided regular and detailed reports on the work performed by their committees to the Supervisory Board in financial year 2025.

The Audit Committee met six times in financial year 2025 to discuss the monitoring of accounting, the accounting process, the appropriateness and effectiveness of the accounting-related internal control system and the risk management system, the internal audit system, the audit of the annual financial statements, the audit of the non-financial Group report, the audit of the quality of the financial statements, compliance and the tender for the audit of the financial statements. In financial year 2025, the Audit Committee dealt in detail with the selection process for the change of auditor in financial year 2026. The Audit Committee also presented a recommendation on the choice of auditor, monitored the auditor's independence, issued the audit engagement to the auditor, prepared certain focal points of the audit and agreed on the auditor's fee. The findings of internal audits were also presented and discussed.

The Audit Committee's work focussed on the audit of the annual and consolidated financial statements, including the combined management report, the non-financial declaration, the corporate governance declaration and the auditor's reports as well as the preparation of resolutions to be made by the Supervisory Board on these matters. In addition, the interim reports (quarterly statements and half-year financial report) were also discussed in detail by the Audit Committee. The Committee also drew up the key areas to be examined in the audit of the annual and consolidated financial statements.

The Chief Financial Officer and the Financial Director attended the Audit Committee meetings and gave an in-depth presentation of the annual financial statements and all reports to be published, provided explanations and answered the committee members' questions.

The auditors were also present at two meetings and reported in detail on the audit of the financial statements and all aspects that arose during planning and performance of the audit which have a direct bearing on the work of the Supervisory Board.

The Personnel Committee examined all employment contracts for the members of the Board of Management, including remuneration and the remuneration system. The Personnel Committee met four times in financial year 2025. Key topics included the long-term remuneration systems for the Board of Management and Supervisory Board, succession planning and the extension of Board of Management contracts, auditing the remuneration report, the remuneration system for the Board of Management, setting variable remuneration targets for the Board of Management and determining the extent to which such targets had been met.

The Sales/Marketing Committee met twice in financial year 2025 and dealt primarily with the marketing organisation, market positioning, the marketing plan and strategies in the non-core sector in addition to internationalisation.

The Product Range/Innovation Committee met twice in financial year 2025 and discussed the new innovation process, medium-term innovation strategy and 2026 innovation pipeline, along with the product range review and sustainability strategy for products.

The tasks of the Nominating Committee include identifying and selecting suitable Supervisory Board candidates for election by the Annual General Meeting. It did not convene a meeting in financial year 2025.

Audit and approval of the annual financial statements

The annual financial statements of the Leifheit Group and the combined management report for financial year 2025, which have been prepared in accordance with section 315e of the German Commercial Code (HGB) on the basis of the International Financial Reporting Standards (IFRS) as well as the financial statements of Leifheit AG for financial year 2025, which have been prepared in accordance with the provisions of the HGB, have been audited by the auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, and have not led to any reservations in its audit opinion. The audit - as reflected in the audit reports - did not result in any grounds for objection.

The documents pertaining to the financial statements as well as the audit reports and the Board of Management's proposal for the appropriation of the balance sheet profit, were handed out to all members of the Supervisory Board. The documents pertaining to the financial statements and the audit reports were discussed in depth at the Audit Committee meeting on 26 March 2026; special attention was paid to the areas to be examined within the scope of the audit. At the Supervisory Board's balance sheet meeting on 26 March 2026, the Audit Committee and its chair presented an in-depth report to the members of the Supervisory Board.

Leifheit Group

Annual report 2025

The auditors attended both meetings and reported on the key findings of their audit. They also reported their findings on the internal control and risk management systems in relation to the accounting process. They determined that the Board of Management has set up an appropriate information and monitoring system suitable for promptly identifying developments that could jeopardise the continued existence of the company.

The audit opinions were discussed with the auditors. The most significant audit matters pertaining to the consolidated financial statements were the impairment testing of goodwill and the realisation of turnover and the turnover recognition cut-off. The auditor confirmed that, in relation to the two key audit matters, the procedure, the accounting treatment and the underlying assumptions and parameters were appropriate and consistent with the applicable accounting principles. The auditors were available to answer further questions and provide information.

Based on its own examination of the annual financial statements, the consolidated financial statements, the combined management report and the remuneration report as well as the report and the recommendations of the Audit Committee, the Supervisory Board approved the findings of the audit as presented by the auditor. The Supervisory Board has raised no objections to the final results of the audit. The Supervisory Board approved both the financial statements and the consolidated financial statements on 26 March 2026. The financial statements are therefore adopted in accordance with section 172 of the German stock corporation act (AktG).

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In light of the failure to implement them, the Board of Management has prepared a separate non-financial Group report in accordance with sections 315b and 315c, in conjunction with sections 289c to 289e HGB, based on the European Sustainability Reporting Standards (ESRS) as an internationally recognised framework for sustainability reporting. This report was subjected to an external audit by the auditing firm KPMG AG with limited assurance. The Supervisory Board examined and approved the separate nonfinancial Group report (sustainability statement).

It also passed a resolution on the declaration of corporate management and the remuneration report.

The Board of Management and the Supervisory Board resolved to propose a dividend of € 0.50 and a special dividend of € 0.70 per eligible share to the Annual General Meeting on 3 June 2026.

The Supervisory Board would like to thank all of the employees, the management team, the Board of Management and workforce representatives for their extremely dedicated commitment and their work in the past financial year. It would also like to thank the company's customers and shareholders for their trust and support.

Nassau/Buchloe, 26 March 2026 The Supervisory Board

Dr Günter Blaschke Chair

‌THE LEIFHEIT SHARE

Against a backdrop of easing concerns over inffation and interest rates as well as emerging trends such as artificial intelligence and defence spending, 2025 turned out to be a strong year overall for Europe's stock markets. However, the environment remained challenging for small- and mid-caps. By the end of the first half of the year, the Leifheit share had initially risen sharply, before stabilising slightly below the previous year's level in the second half of the year following an adjustment to business expectations. The Board of Management and the Supervisory Board are proposing to the Annual General Meeting a dividend and special dividend totalling € 1.20 for the financial year 2025.

Stock markets

Despite high volatility (trade conflicts, the AI boom, geopolitical crises), the global stock markets often posted strong gains in 2025. Global indices such as the MSCI World (USD) rose by 21.6% and the Dow Jones by 12.9%. Technology-heavy indices benefited in particular from high levels of investment in AI, with the NASDAQ 100 also registering a significant gain of 20.2%.

Annual report 2025

In Germany, an investment program announced by the federal government brought about a marked improvement in investor sentiment. Defence, infrastructure and energy companies in particular performed strongly, while consumer-related sectors were weaker in the face of a stagnating economy and subdued consumer spending. The German benchmark index, the DAX, posted a significant gain of 23.0% in 2025.

Leifheit Group

The relevant benchmark indices for the Leifheit share are the SDAX and the MSCI Germany Small Cap (EUR). The SDAX recorded an increase of 25.3% in 2025, while the MSCI Germany Small Cap (EUR) rose by 25.4%.

Share price performance

The Leifheit share (ISIN DE0006464506) initially outperformed the SDAX significantly at the end of the first half of 2025, only to subsequently fall back. The share reached its peak for the year of

€ 22.20 on 5 May 2025. The share price hit its low for the year on

17 December, trading at € 14.65. The Leifheit share closed at

€ 15.20 on the final trading day of 2025 (final trading day 2024:

€ 15.85). Therefore, the share lost around 4.1% in value over the course of the year. Leifheit AG's market capitalisation on the basis of all issued shares stood at around m€ 139 as at the end of financial year 2025 (31 December 2024: m€ 159). Adjusted for the shares held by the company, market capitalisation is also marginally lower at around m€ 139 (31 December 2024: m€ 148).

Key figures for the Leifheit share in €

1 Dividend proposal.

2 Based on the year-end closing prices of the respective financial year.

3 Number of outstanding shares as at 31 December (excluding treasury shares).

4 Closing prices on Xetra, Deutsche Börse's electronic trading system.

5 Based on all shares issued.

015

6 Based on the closing prices at the end of the year and the net result for the period per share.

Trading volume

The Leifheit share was traded significantly more frequently in financial year 2025 than in the previous year in Xetra, Deutsche Börse's electronic trading system. Whereas trading stood at an average of 3,518 shares a day in the previous year, the figure amounted to an average of 6,079 shares a day in financial year 2025. In this context, it should be noted that the share buyback program, which ran until the end of April 2025, increased trading volume on the stock exchange.

3-year performance of the Leifheit share

70

60

50

40

30

20

10

0

-10

Compared to the SDAX and MSCI Germany Small Cap (EUR) in % (indexed to 100)

Closing price SDAX Closing price Leifheit share Closing price MSCI Germany Small Cap (EUR)

Historical dividend development 1

Dividend per share in €

1.50

1.25

1.00

0.75

Annual report 2025

0.50

0.25

0.00

Share buyback, capital reduction and treasury shares

170

160

150

140

130

120

110

100

90

2023

2024

2025

By resolution of the 2020 Annual General Meeting, the Board of Management was authorised to acquire and use treasury shares until 29 September 2025 in accordance with section 71 para 1 no. 8 AktG. The Board of Management made use of this authorisation and acquired a total of 397,145 treasury shares in the period from 15 May 2024 to 30 April 2025 as part of the 2024 share buyback program. An amount of around m€ 7.0 (including incidental costs) was incurred for this, at an average rate of € 17.60 per no-par-value bearer share. The corresponding interest in the share capital is just under m€ 1.2. Of these, 194,784 treasury shares were attributable to financial year 2025. An amount of around m€ 3.5 (including incidental costs) was incurred for this, at an average rate of € 18.06 per no-par-value share. The corresponding interest in the share capital is k€ 584.

On 4 November 2025, the Board of Management resolved, with the approval of the Supervisory Board, to reduce the company's share capital by k€ 2,490 from the previous k€ 30,000. To this end, 830,000 treasury shares were redeemed. The pro rata interest in the share capital per redeemed share is € 3.00. Following the capital reduction, the share capital of Leifheit AG now amounts to k€ 27,510 and is divided into 9,170,000 no-par-value bearer shares.

By resolution of the Annual General Meeting on 28 May 2025, the company is once again authorised to acquire and use treasury shares in accordance with section 71 para 1 no. 8 AktG. The new authorisation is valid until 27 May 2030.

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2025 2

In financial year 2025, 4,368 treasury shares were used to issue employee shares. Leifheit AG held 36,318 treasury shares on 31 December 2025; this corresponds to around 0.4% of the share capital.

016

Leifheit Group

Dividend Bonus/special dividend 1 Dividends adjusted before capital increase from company funds. 2 Dividend proposal.

Shareholder structure

The percentage of shares in free float stood at 79.5% at the end of financial year 2025, an increase on the level of the previous year (2024: 74.8%). Based on the voting rights notifications and other information available to Leifheit, the shareholder structure of Leifheit AG as at 31 December 2025 is shown in the table below. With regard to investors who were not required to report their holdings following the capital reduction because they had not exceeded the reporting threshold, the shares last reported in the voting rights notification were converted to the new share capital.

For comparison purposes

1 Shares doubled on the basis of the last voting rights notification after the capital increase 2017.

2 Shares converted on the basis of the last voting rights notification after the capital reduction 2025.

017

Leifheit Group

Annual report 2025

The current overview of the shareholder structure can be found online at https://www.leifheit-group.com/en/investor-

Shareholder-oriented dividend policy

The Board of Management and Supervisory Board of Leifheit AG aim to enable all shareholders to partake appropriately in the company's success. As a matter of principle, Leifheit AG's dividend policy therefore provides for distributing roughly 75% of the net result for the period or the free cash flow of a financial year to the shareholders as dividends. In years in which 75% of the net result for the period would not be sufficient for a stable dividend, the Board of Management and Supervisory Board may consider proposing a distribution of dividends which exceeds this value.

Dividend proposal for financial year 2025

The Board of Management and the Supervisory Board propose paying a dividend of € 0.50 and a special dividend of € 0.70 per eligible share for financial year 2025, thus following on from the reliable dividend policy pursued in previous years. Following approval by the Annual General Meeting, the total amount of around m€ 11 will start to be paid out to the shareholders on the third working day after the Annual General Meeting. This would result in a dividend yield of 7.9% based on the closing price at the end of 2025.

For financial year 2024, m€ 11.0 was distributed to shareholders - a dividend of € 1.15 plus a special dividend of € 0.05 per eligible share. Based on the closing price at the end of 2024, the dividend yield was 7.6%.

Dividend yield based on the closing price at the end of the year

Communication with the capital market and shareholders

Leifheit aims to provide continuous, prompt, comprehensive and transparent information on current developments within the company and to maintain an active dialogue with investors. In 2025, the Leifheit share was covered by analysts from Oddo BHF, M.M. Warburg and mwb research (2024: two analysts). mwb research initiated coverage in 2025.

Leifheit AG continued to engage in continuous dialogue with its shareholders and the capital market in financial year 2025. Leifheit regularly reported on the company's business development in virtual analyst conferences. Shareholders and their representatives had the opportunity to follow the Annual General Meeting held in person at the German National Library in Frankfurt in May 2025 and to cast their votes on the items on the agenda. The Board of Management of Leifheit AG also regularly participates in international capital market conferences, including the 2025 spring conference by the Equity Forum and the German Equity Forum organised by Deutsche Börse. In addition, the Board of Management made use of platforms such as mwb ResearchHub to present the Leifheit Group in more detail to institutional investors and private investors as part of a round table event.

Interested investors can obtain the latest information on the Leifheit Group and the Leifheit share at the company and investor relations section of the Leifheit AG website at https://www.leifheit-group. com/en/investor-relations.

To our shareholders Combined management r eport

Consolidated financial statements

Further information

018

Leifheit Group

Annual report 2025

COMBINED MANAGEMENT REPORT

‌FOUNDATIONS OF THE GROUP

The Leifheit Group is one of the leading European brand suppliers of household items. The Group offers high-quality and innovative products and ideas that make everyday life at home easier.

As a listed company, Leifheit AG has drawn up its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) as applicable in the European Union (EU) and the additional requirements of German commercial law according to section 315e para 1 of the German commercial code (HGB). The management report of Leifheit AG and the consolidated management report were combined in accordance with section 315 para 5 and section 298 para 2 HGB. Unless noted otherwise, the following information relates equally to Leifheit AG and to the Leifheit Group. The particulars of Leifheit AG can be found in the section titled "Notes to the annual financial statements of Leifheit AG (HGB)".

>>1 Activities and areas of business

A distinction is drawn between the following reportable segments:

• the Household segment, in which we market and sell the Leifheit brand and products from the cleaning, laundry care and kitchen goods categories;

• the Wellbeing segment, featuring the Soehnle brand and a range of scales and room air treatment products; and

• the Private Label segment, together with the French subsidiaries Birambeau S.A.S. and Herby S.A.S., which includes kitchen goods and laundry care products created specifically for private-label brands.

Our core business is the Household segment, in which we sell branded products characterised by their durability and high-quality workmanship, combined with significant benefits for the consumer. This applies, in particular, to our mechanical cleaning products and dryers, which are the focus of our strategy. We sell these products in the medium to upper price segment. They form the basis of our presence in international markets.

We pursue a consistent brand management strategy in the Household and Wellbeing segments and continue to develop and advance our product range through systematic processes for innovation and market launch.

The Private Label segment comprises product ranges that are primarily offered as private labels in the mid-price range. The segment has a strong focus on individual markets and customers. France is the most important market.

Reportable segments

Leifheit Group

Household

Wellbeing

019

Leifheit Group

Annual report 2025

1 This information is part of the separate non-financial Group report of Leifheit AG for the financial year from 1 January to 31 December 2025.

‌Markets and market position

The Leifheit Group concentrates its sales and marketing activities on European target markets. The key sales markets are our domestic market of Germany, accounting for a share of around 39% of turnover and the countries of Central Europe, with a share of around 45%. Important markets in Central Europe include the Netherlands, France and Austria. In the reporting period, we generated around 14% of our turnover in Eastern European core markets, such as the

European markets, particularly when it comes to systems designed for mopping flat surfaces. We generate around 13% of Group turnover with kitchen goods.

The wellbeing category includes the Soehnle brand products and accounts for around 5% of turnover. Soehnle is one of the leading suppliers of bathroom and kitchen scales in Germany and other European markets.

impact on the Group's business than for suppliers of cyclical consumer goods, although they do not isolate it completely from economic developments.

Change in Group structure

Apart from the organisational changes resulting from the relocation of production, there were no significant changes to the organisational

Czech Republic, Poland and Slovakia. In other regions outside structure or business model in the reporting period.

Europe, such as in the US and the Middle East, we market our products primarily through distributors. Non-European markets currently account for roughly 2% of Group turnover.

Product categories

Proportion of tur nover in % (previous year's figures)

Wellbeing

5 (6)

Cleaning

34 (35)

There were no changes to the scope of consolidation in financial year 2025.

Kitchen goods

Sales markets

Proportion of tur nover in % (previous year's figures)

Rest of the world

2 (3)

Eastern Europe

14 (15)

Germany

39 (38)

13 (13)

Laundry care

48 (47)

Organisation, corporate structure and management responsibility

Leifheit AG has been a listed corporation under German law since 1984. The shares of Leifheit AG are traded under ISIN DE0006464506 in the Prime Standard on the German stock exchanges Frankfurt/ Main, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart as well as on the electronic trading systems Xetra, Tradegate, Lang &

Schwarz Exchange, Gettex and Quotrix. Considering all issued

shares, market capitalisation stood at roughly m€ 139 as at 31 De-

Central Europe

45 (45)

020

Leifheit Group

Annual report 2025

We focus on core areas of expertise in the product categories of cleaning, laundry care, kitchen goods and wellbeing across all three business segments. Our biggest product categories are laundry care products, which account for around 48% of turnover and cleaning products, at around 34%. In the field of cleaning equipment, Leifheit is one of the leading suppliers in Germany and across many

The performance and results of our business activities are also influenced by external factors. These include, in particular, changes in the relevant foreign currencies against the euro, purchase prices and freight costs.

For the most part, the areas of business in which the Leifheit Group operates tend to be part of the non-cyclical consumer goods sector. Everyday consumer goods are generally less dependent on economic fluctuations than the cyclical consumer goods sector. Accordingly, the overall economic development, general economic situation in the core markets and consumer sentiment had less of an

cember 2025. The company is entered in the Commercial Register of Montabaur Local Court under HRB 2857. The registered office and management are still located in Nassau/Lahn, where the company was founded. The main locations of Leifheit AG in Germany are in Nassau (distribution, administration and production) and Zuzenhausen (logistics). In addition, the company has sales offices abroad that are not legally independent: one in Brescia, Italy (established in 1982), and another in Aartselaar, Belgium (established in 1987).

‌Leifheit AG has eleven subsidiaries. Leifheit AG's main holdings are Leifheit s.r.o. in the Czech Republic (production and logistics) and Leifheit-Birambeau S.A.S. in France (distribution).

As at the balance sheet date, the Board of Management consisted of three members. The Board of Management defines the strategy of the Leifheit Group, is responsible for Group-wide central functions and steers the Group's business segments. Each member of the Board of Management is responsible for multiple functions within the Leifheit Group. The rules of procedure for the Board of Management set out the responsibilities of individual board members. Their personal knowledge of products and markets, customer- and country-specific features and their expertise in central Group functions ensure the efficient and professional management of the Leifheit Group.

Group strategy

In 2024, we developed a new, comprehensive Group strategy focussed on profitable growth and cost efficiency, which we continued to pursue in the reporting year. The strategy is based on our mission statement "Our ideas that make your life easier". With our new strategy, we are pursuing our vision of becoming the European market leader and specialist in mechanical cleaning and drying - with the highest levels of customer satisfaction, an entrepreneurial culture and a sustainable mindset.

Annual report 2025

Our strategy is based on a corporate culture that is open and positive, while also focussed on performance and teamwork. The core values of trust, courage, integrity and ambition guide our actions. To successfully implement our strategy, we have defined growth and efficiency drivers that we will vigorously pursue under the motto "LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE."

A key growth driver is strengthening the brand positioning of the Leifheit brand. It is essential that we align all our activities with consumer requirements.

We concentrate on the two core areas in which we have our greatest expertise: mechanical cleaning and drying. Due to our high-quality products in both product areas, we see attractive growth potential for the Leifheit Group. This is linked to another important component of our strategy: we are strengthening our company's capacity for innovation in order to develop even more innovative products and services that offer outstanding value to our customers within our two key focus areas. We also foster growth by taking a focussed portfolio approach tailored to our target markets. This means that we have put each sales market to the test, categorised it and defined specific country strategies as a result, which are now being implemented consistently. In addition to the ongoing expansion of our stationary sales channels, accelerating the growth of our e-commerce business is also of key strategic importance.

Leifheit Group

In order to generate profitable growth and further increase Leifheit's earning power, we are placing particular emphasis on defined efficiency drivers. This begins by focussing on our core areas of mechanical cleaning and drying and by establishing clear strategies for all other product categories and segments. One driver for greater efficiency is the transformation and digitalisation of processes along the entire value chain. The introduction of SAP S/4HANA in 2025 was a decisive milestone in this regard. Another key driver of efficiency is optimising value by enhancing costs, processes and product ranges to boost profitability. Lean, effective organisational structures also contribute to efficiency. In the area of logistics, we focus on making the supply chain to our customers as simple and straightforward as possible, while also streamlining our production and operational processes. The relocation of the remaining injection moulding production in Nassau to the production location in Blatná,

Czech Republic, during the reporting period represents a significant step towards optimising production. The fifth efficiency driver is integrated communication at the Point of Sale. Our activities in this area target maximising multimedia brand activation with strong reach momentum right up to the Point of Sale.

We regard sustainability as an integral part of our Group strategy. We are committed to ecological and social responsibility as well as corporate governance with integrity. You can find out more in our sustainability statement. << 1

Financing strategy

The primary objective of our financing strategy is to maintain a healthy capital structure. Here, we place particular value on a sufficient equity ratio of at least 30% to ensure the confidence of investors, banks, suppliers, customers and our employees. We focus on maintaining a capital structure that allows coverage of our future potential financing requirements on reasonable terms in financial markets. We aim to maintain a high level of independence, security and financial flexibility.

021

1 This information is part of the separate non-financial Group report of Leifheit AG for the financial year from 1 January to 31 December 2025.

‌Control system principles

The Leifheit Group is managed centrally in terms of strategy, while operations are decentralised. Having few units and hierarchical levels promotes fast and efficient cooperation within the Group. Our organisation is designed so that we provide optimal support to our customer and brand management teams to advance our Group's strategy. To this end, we have divided our business into the Household, Wellbeing and Private Label segments. The organisational structure and the process organisation are structured so as to enable us to achieve our strategic business alignment targets in the best possible way.

We ensure that corporate management is focussed on ongoing increases in company value. It is for this reason that we employ a value-oriented management system. The key performance indicators of the Group are turnover, the turnover of the segments, EBIT and free cash flow. Free cash flow is the total of cash flow from operating activities and cash flow from investment activities, adjusted for incoming and outgoing payments in financial assets and, if applicable, from the acquisition and divestiture of business divisions. Further performance indicators are EBIT before special items, free cash flow before special items and return on capital employed (ROCE). ROCE is the ratio of EBIT to capital employed, i.e. the average total amount (as at the quarterly balance sheet date) of trade receivables, inventories, contractual assets and non-current assets less trade payables and other liabilities.

Annual report 2025

No changes were made to the control system in the reporting period.

Innovation and product development

In 2024, we developed a Group strategy and vision which defined innovation as one of the key drivers of growth. To this end, we have formulated a new innovation strategy that supports our growth-oriented and consumer-focussed approach. We aim to launch at least two or three profitable innovations onto the market each year.

A central element of the new innovation strategy is a streamlined and more effective innovation process. The requirements of international markets will increasingly be consider by cross-functional teams. We are also focussing even more intensively on the needs of our customers. At the heart of everything we do is our commitment to making consumers' lives easier thanks to our ideas. The products in our successful BLACK LINE range have shown that functional, high-quality products can also feature an attractive design. Good design that blends harmoniously into any living environment remains one of our focal points. We remain true to our core brand values of functionality, quality and durability. After all, this is what the Leifheit brand is known for by consumers. In parallel, products that last a long time mean lower resource consumption and less waste.

Our strategy places an even stronger focus on sustainability. We promote aspects of the circular economy and increase the proportion of recycled materials in products and packaging. In 2025, we launched packaging and product solutions on the market that contain recycled plastics. Further examples of how this is applied are set to follow soon as part of a new strategy for sustainable products and packaging.

Leifheit Group

For example, the fruits of our innovation efforts in 2025 led to the successful market launch of our new SUPERDUSTER product, which quickly established itself as a key driver of growth in the dust

removal market segment. The innovative, sustainable "wash instead of throwing away" concept sets the SUPERDUSTER apart in a market environment that has so far been characterised by disposable products and offers consumers, among other things, the advantage that the SUPERDUSTER can be washed and used multiple times.

In financial year 2025, the Leifheit Group spent m€ 4.2 (2024: m€ 5.2) on research and development activities. The R&D ratio, which represents the ratio of research and development costs to Group turnover, amounted to 1.8% (2024: 2.0%). At the end of the year, 30 people (2024: 30 people) were employed in the development and patents divisions.

Industrial property rights

To safeguard the economic value of the Group's development activities, we register the relevant intellectual property rights (patents or utility models) before announcing new products and solutions. In doing so, we protect our ideas and investments from unauthorised reproduction. The decision as to whether we should secure our competitive advantage in a particular country by registering intellectual property rights depends on the economic value of the innovation. The turnover to be expected and the respective competitive environment are the decisive criteria. As a rule, we chiefly assess this in connection with our most important sales markets.

022

We pursue patent infringements by other providers' products. Following decisions by the high courts in Germany and Austria, in the reporting period, we again effectively pursued legal action against competitors in several countries that had violated our patents and rights, both in and out of court.

‌ECONOMIC ENVIRONMENT

The economic environment in 2025 continued to be dominated by sluggish demand and a marked decline in consumer spending across the product categories relevant to the Leifheit Group. Given a challenging economic environment, consumer sentiment remained subdued, particularly in many key European markets, as evidenced by a more cautious approach to spending and a decline in footfall. Although supportive economic policy measures had a stabilising effect, they only led to a sporadic upturn in demand in the non-food sector.

Macroeconomic situation

In its economic outlook from January 2026, the IMF reported global gross domestic product (GDP) growth of 3.3% for 2025. The high-tech sector - particularly in the US and Asia - was a significant driver and succeeded in offsetting lower momentum in other industries. Inflation stood at 4.1% worldwide in 2025, although it continues to ease at a slower pace in the US.

Europe

023

Leifheit Group

Annual report 2025

The European Commission's autumn forecast indicated that, despite challenging external economic conditions, economic growth in the eurozone was positive in 2025. The economy continued to grow even after the surge in economic activity triggered by the anticipated tariff increases in the spring. According to the EU Commission's projections, this development is reflected in GDP growth of 1.3% in the eurozone for 2025 as a whole. It is also expected that headline inflation in the eurozone will continue to decline in 2025 to 2.1%, down from 2.4% in 2024. This means that inflation is already very close to the ECB's 2.0% target. The labour market showed a slight improvement. According to the autumn forecast, the unemployment rate in 2025 was at a low level of 5.9%, 0.2 percentage points lower than in the previous year.

Germany

In 2025, the overall economic downturn was primarily characterised by the prolonged difficulties in the German manufacturing sector, which resulted in the loss of around 170,000 jobs. Overall consumer sentiment remained at a very low level, largely due to the high degree of uncertainty caused by the general economic situation. According to the Kiel Economic Report, Germany's economic strength increased by 0.1% overall in 2025. As the economy continues to tread water, the situation on the labour market has deteriorated slightly. At 6.3%, the annual average unemployment rate in December 2025 was 0.3 percentage points higher than the previous year's figure.

Foreign currencies

In 2025, the euro appreciated significantly in response to heightened trade barriers imposed by the US and the successful easing of inflation. At the end of 2025, it had gained 8.5% in value against the Chinese yuan and 13.1% against the US dollar.

‌Industry development

The economic environment in 2025 continued to be shaped by a marked decline in consumer spending by private households in many key European markets. Despite individual positive signals in the retail sector, consumer sentiment remained subdued overall with the trend well below the long-term average.

Retail turnover, private consumer spending and consumer confidence

Leifheit Group

Annual report 2025

At the European level, the wholesale and retail sector recorded moderate growth in 2025. According to the Statistical Office of the European Union (Eurostat), price-adjusted turnover and sales volume in wholesale and retail trade within the EU rose 2.3% on the previous year. There was also a slight recovery in retail turnover in Germany. The Federal Statistical Office (Destatis) estimates real turnover growth at 2.7% and nominal growth at 3.8% compared with 2024.

However, these aggregated growth figures could not disguise the fact that demand trends in many market segments remained volatile and were strongly affected by subdued consumer sentiment. The Consumer Confidence Indicator compiled by the EU Commission, which is considered an early indicator of the future trend in consumer spending, continued to remain at a low level in 2025. In December 2025, the indicator was down on the previous month by

0.1 percentage points in the EU and 0.4 percentage points in the eurozone. At - 13.7 and - 14.6 points respectively, consumer confidence remained well below the historical average.

024

Consumer sentiment in Germany also remained subdued overall despite a 1.5% increase in private consumption. In 2025 private households increased their price-adjusted expenditure on durable goods such as furnishings and general household goods by 2.8% on the previous year. Meanwhile, the GfK Consumer Climate Index, which tracks the economy, income expectations and consumers' propensity to spend, indicated a growing tendency to save. The index remained at a low level throughout the year, showing only a

slight, temporary improvement around the middle of the year. At - 23.4 points, consumer morale remained at a very low level in December 2025. This subdued demand was also evident in the decline in customer footfall. According to the economic survey conducted by the German Retail Association (HDE), more than two-thirds of retail companies reported falling or significantly falling footfall at their stationary locations in 2025.

‌NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS OF THE GROUP

Overall assessment of management in regard to the economic situation

Financial year 2025 was once again shaped by challenging economic conditions for the Leifheit Group, especially in its core European markets. Economic growth in the eurozone was subdued overall in 2025. The economy in the Group's home market of Germany also stagnated and persistently subdued consumer sentiment continued to be accompanied by a loss of footfall in the retail sector and a marked reluctance to buy non-food products.

Against this backdrop, consistently implementing our Group strategy "LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE." was

of crucial importance. The main initiatives were aimed at strengthening our business in the core categories of mechanical cleaning and drying, which offer the greatest potential in the medium term. The measures are having an effect: thanks to the successful launch of its innovative SUPERDUSTER product, the Group recorded significant growth in the dust removal market segment. In addition, the Leifheit Group is focussing on targeted marketing activities and the expansion of distribution in important European core markets. The high-margin BLACK LINE continued to command particular attention, comprising bestsellers from the core categories of mechanical cleaning and drying.

Annual report 2025

Given slower market growth, the Group's core business was unable to offset the expected decline in turnover, which was largely due to product range realignments. However, overall, the core business proved more resilient than non-core categories, particularly in the key areas of mechanical cleaning and drying.

In addition, the Leifheit Group focussed on further improving its efficiency and resilience. In this context, the focus was on optimising and concentrating injection moulding production at the Czech location in Blatná as well as implementing SAP S/4HANA.

Consequently, we succeeded in further improving the Group's operating efficiency in 2025. As a result, the Leifheit Group still managed to achieve EBIT of m€ 10.0 in financial year 2025, despite a weaker trend in turnover. This includes special items amounting to around m€ 1.6 resulting from the optimisation project in production. Accordingly, Group EBIT before special items totalled m€ 11.6 and was therefore only slightly below the previous year's level. The productivity and efficiency gains achieved are reflected in an increase in the gross margin before special items to 45.7% (2024: 44.5%).

Thanks to its sound financial position, the Leifheit Group has the necessary scope to consistently pursue its strategic measures and underpin them with targeted investments. As at the balance sheet date, non-current liabilities remained unchanged and consisted primarily of pension obligations. As in previous years, there were no other liabilities to credit institutions. The equity ratio increased by

1.8 percentage points to 50.0%. In light of a reduction in inventories, working capital continued to improve in the reporting period. Overall, the significantly lower cash inflow from operating activities in the reporting period led to a free cash flow of m€ 6.4 after m€ 14.2 in the previous year. Cash and cash equivalents at the Group amounted to m€ 32.6 as at 31 December 2025.

Comparison of actual performance with projected business performance

The forecasts for the development of turnover, EBIT and free cash flow, which the Group announced in March 2025 for financial year 2025, were continuously reviewed by the Board of Management over the course of the year.

In March 2025, the Board of Management anticipated Group turnover growth of around 2% to 4% for the financial year 2025 compared to the previous year's figure (2024: m€ 259.2). The forecast turnover development as well as cost-cutting and efficiency measures were expected to have a positive effect on earnings. Against this backdrop, the Board of Management initially expected Group EBIT to be in the range of m€ 15 to m€ 17 (2024: m€ 12.1). In light of planned investments in the efficiency of production and logistics in 2025, the Board of Management expected a positive free cash flow in the upper single-digit million-euro range on this basis (2024: m€ 14.2).

025

Leifheit Group

As a result of the strategic decision to relocate the entire injection moulding production to Blatná (Czech Republic) and the associated effects on earnings, along with persistent subdued consumer spending, in June 2025, the Board of Management of Leifheit AG reassessed its expectations for the full year 2025. As a result, the Board of Management lowered its earnings and turnover forecast and expected Group EBIT in financial year 2025 to be around the previous year's level and turnover to be slightly below the previous year's level. On this basis, the Board of Management also anticipated free cash flow in the mid-single-digit million-euro range for the full year 2025.

Considering the preliminary half-year figures for 2025 and the expected special items from the production optimisation project, the Board of Management of Leifheit AG further revised its forecast for Group EBIT and Group turnover for the full year 2025 in July 2025. Group EBIT was forecast to be in the range of m€ 9 to m€ 11 and Group turnover was expected to fall by around 5% to 8% on the previous year.

026

Leifheit Group

Annual report 2025

In November 2025, the Board of Management of Leifheit AG again updated its 2025 turnover forecasts based on results for the first nine months and ultimately anticipated a decline in Group turnover of around 10% to 12% as compared to the previous year's figure.

The Leifheit Group generated turnover of m€ 232.6 in the reporting period, which corresponded to a decline of 10.3% and was therefore in line with the most recently communicated forecast. The largest segment, Household, where a decline of around 10% to 12% was most recently expected for financial year 2025, recorded a turnover of m€ 193.0, a decrease of 9.6%. In the Wellbeing segment, where a decline in turnover of around 16% to 18% was most recently forecast for 2025, turnover fell by 14.6% to m€ 12.6. In the Private Label segment, turnover was most recently expected to decline by around 11% to 13%. The segment recorded a decline in turnover of 12.7% to m€ 27.0.

Group EBIT totalled m€ 10.0 in the reporting period and was thus within the most recently forecast corridor of m€ 9 to m€ 11. Free cash flow totalled m€ 6.4 in the reporting period, thus reaching the most recently issued forecast of a mid-single-digit million-euro figure.

Turnover development is described in detail in the "Business performance" section below.

‌Business performance

In financial year 2025, the Leifheit Group generated turnover of m€ 232.6. This corresponds to a decrease of 10.3% compared to the previous year (2024: m€ 259.2). The trend in turnover was largely influenced by subdued consumer sentiment, with pronounced reluctance to spend in the non-food sector as well as declining footfall in key retail markets.

In the reporting year, turnover performance in the home market of Germany was impacted above all by a particularly weak consumer climate with low footfall in the retail sector and a reluctance to spend in the non-food sector, which was evident in all sales channels.

Group turnover by region

in m€

consumer sentiment. Important markets such as the Netherlands, where the loss of a major trading partner was largely compensated for, proved to be somewhat more resilient than other markets in Central Europe, with declines in the low to mid-single-digit percentage range.

Eastern Europe

In the Eastern Europe sales region, turnover fell by 12.5% to m€ 32.9

At segment level, the Household segment, by far the largest, showed the greatest resilience to the difficult market conditions, while the Wellbeing and Private Label segments were more strongly affected.

The Leifheit Group's turnover fell short of the previous year's figures in almost all sales regions. Foreign turnover fell by a total of m€ 19.0 to m€ 142.4 in the 2025 reporting year (2024: m€ 161.4). The foreign share of Group turnover fell accordingly to 61.2% in 2025 (2024: 62.3%).

300

250

200

150

100

50

0

288 251 258 259 233

5

35

7

99

126

106

117

111

4

33

38

7

34

116

8

38

(2024: m€ 37.6). In particular, turnover in the Czech Republic, the Leifheit Group's largest Eastern European market, fell well short of expectations, while markets such as Poland recorded single-digit percentage declines in turnover.

Rest of the world

Turnover in non-European markets fell significantly in 2025 - by 43.6% to m€ 3.8 (2024: m€ 6.7). This is primarily due to a significant decline in US business.

2021 2022

2023

2024

2025

Group turnover by quarter

Group turnover by region

Germany

027

Leifheit Group

Annual report 2025

In Germany, the Leifheit Group achieved turnover of m€ 90.2 in financial year 2025 after m€ 97.8 in the previous year. This corresponds to a decrease of 7.8% on the previous year. The share of Group turnover generated in Germany increased to 38.8% (2024: 37.7%).

German Central Europe Eastern Europe Rest of the world

Central Europe

In Central Europe, the Leifheit Group generated turnover of m€ 105.7 in 2025 (2024: m€ 117.1), a decrease of 9.7%. Overall, the markets in Central Europe were also affected by a noticeably subdued

The start of the reporting period painted a mixed picture for the Leifheit Group, which achieved turnover of m€ 63.7 in the first quarter of 2025. The 3.3% decline in turnover was primarily characterised by slightly lower turnover in the sales regions outside Germany, while the home market of Germany recorded double-digit growth.

Strategic adjustments to the product range, the insolvency of a major retail partner and a noticeable slowdown in the home market

Group turnover by segment

Group turnover by segment

in m€

of Germany also led to a 13.6% decline in Group turnover to m€ 59.7 in the second quarter of 2025.

Household

In the largest segment, Household, which includes the Leifheit

300

288 251

258

259

233

brand, the Leifheit Group achieved turnover of m€ 193.0 (2024:

250

Group turnover by quarter

in m€ / growth in %

m€ 213.5). This corresponds to a decrease of 9.6% on the previous year. As part of the implementation of its strategy, the Leifheit Group

200

300

250

200

150

+ 6.2% - 12.8%

+ 2.7%

+ 0.4%

- 10.3%

is focussing on this segment, which comprises its core business in the categories of mechanical cleaning and laundry care. With a decline in turnover of 6.1% in the core business, the segment proved to be significantly more robust in the face of macroeconomic headwinds.

72

86

64

70

56

66

57

70

54

58

58

63

Turnover in the cleaning category was boosted by the successful

150

100

50

0

32

26

31

16

30

16

31

15

27

13

231

204

212

214

193

2021 2022

2023

2024

2025

100

50

0

2021 2022

2023

2024

2025

launch of the innovative SUPERDUSTER product and the resulting significant growth in the dust removal segment, yet overall it fell well short of the previous year's figure.

Laundry care was the category within the segment that showed the

Household Wellbeing Private Label

Private Label

The Private Label segment mainly distributes private-label brands

Q1 Q2 Q3 Q4

In the third quarter of 2025, the Leifheit Group continued to face a pronounced reluctance to buy in the non-food sector and generated Group turnover of m€ 55.6, which corresponded to a 15.5% decrease in turnover.

028

Leifheit Group

Annual report 2025

The Leifheit Group closed financial year 2025 in the fourth quarter with Group turnover of m€ 53.6, down 8.2%. For the year as a whole, turnover was therefore 10.3% lower than the previous year and thus in line with the most recently adjusted forecast.

greatest resilience in the face of tough market conditions. Demand for products from the successful BLACK LINE remained strong, but it was not enough to offset the overall decline in turnover.

Wellbeing

The Wellbeing segment, which includes the Soehnle brand achieved turnover of m€ 12.6 in 2025 (2024: m€ 14.7). This corresponds to a decrease of 14.6% on the previous year. The core business comprising bathroom and kitchen scales continued to account for the largest share of segment turnover. This is where the three new products launched in 2025 made their first significant impact.

through the French subsidiaries Birambeau and Herby. In financial year 2025, the segment generated turnover of m€ 27.0 (2024: m€ 31.0), down 12.7% on the previous year's figure. Birambeau, with its kitchen goods, and Herby, with its range of laundry care products, both fell short of last year's figures, by a small and a significant margin respectively. In addition to a generally cautious attitude towards spending in France, the loss of a major trading partner had a significant impact.

‌Development of results of operations

Special items

As part of the strategic development of the production network, the injection moulding operations that had previously been located in Nassau were relocated in 2025. Production is now centralised at the location in Blatná, Czech Republic, where more than 80% of the company's injection moulding output was previously generated. In the reporting period, expenses amounting to m€ 1.6 were recognised in cost of turnover in connection with this strategic optimisation project; these included personnel costs relating to the closure of the injection moulding facility in Nassau as well as costs associated with

Group result

Comprehensive income after taxes amounted to m€ 8.6 in the reporting year (2024: m€ 8.2). It includes the net result for the period and other comprehensive income. Other comprehensive income also includes components that are recorded directly under equity as other reserves. This relates to currency effects from the translation of financial statements in foreign currencies, changes in the value of hedging transactions, currency effects of capital-replacing loans from Group companies and adjustment effects from pension obligations. Other comprehensive income rose to m€ 2.4 in the reporting period (2024: m€ 0.2). The significant increase of m€ 2.2 was mainly due to the change in the adjustment effects of provisions for pensions and the currency translation of net investments in foreign business operations.

refurbishment, relocation and site transfers. No special items were In financial year 2025, the Leifheit Group generated EBIT in the

included in the corresponding period of the previous year.

As at 31 December 2025, the gross margin and EBIT of the Leifheit Group therefore included special items that had an impact on the Group statement of profit or loss. Gross margin and EBIT before special items represent adjusted performance indicators because special items are not defined in IFRS. The presentation of selected items as special items is intended to ensure transparency regarding the quality of the Leifheit Group's results. The special items are presented separately in the segment reporting. Special items can generally result from the purchase, sale or termination of lines of

amount of m€ 10.0 (2024: m€ 12.1). Accordingly, the EBIT margin reached 4.3% (2024: 4.7%). It is calculated as the ratio of EBIT to turnover. From an annual perspective, various factors led to the decline in earnings compared with the same period in the previous year. Earnings were thus impacted by the significant drop in gross profit, caused by the loss of contribution margins resulting from the decline in Group turnover due to lower volumes as well as by the decline in the foreign currency result. This was offset by significant cost savings and an improvement in the gross margin. In addition, the special items from the strategic optimisation project in production referred to above had a negative impact on earnings in the amount

Group result

in m€

25

20.1

14.2

12.1

8.0

10.0

6.0

6.2

2.8 3.2

1.2

20

15

10

5

business, M&A transactions, closures or relocations of locations or production areas, changes to the management structure or

of m€ 1.6. EBIT before these special items amounted to m€ 11.6, 0

only just falling short of the previous year's EBIT of m€ 12.1.

2021 2022 2023 2024

2025

Annual report 2025

significant changes to the company organisation, significant IT transformations and fundamental reorganisations with a significant impact on the nature and focus of business activities. These are unusual events or events that do not occur annually and have a lasting impact on the results of operations.

029

Leifheit Group

EBT decreased to m€ 8.7 in the financial year 2025 (2024: m€ 11.3). This was due to the fact that the net interest and financial result contained therein fell by m€ 0.6 to m€ - 1.4 (2024: m€ - 0.8) as a result of lower interest income from financial instruments. After deducting income taxes of m€ 2.4 (2024: m€ 3.2), the Leifheit Group generated a net result for the period of m€ 6.2 (2024: m€ 8.0).

Net result for the period EBIT

Gross profit Administrative costs

Gross profit fell in financial year 2025 by m€ 10.6 to m€ 104.8 (2024: m€ 115.4). The main reason for this was the absence of a contribution margin from the substantial volume-related decline in turnover. This notwithstanding, the gross margin rose by

0.6 percentage points to 45.1% (2024: 44.5%). The gross margin is calculated as gross profit in relation to turnover. Adjusted for the special item from the strategic optimisation project in production, the gross margin rose by 1.2 percentage points to 45.7%. This was due in particular to increased productivity and efficiency in production, positive product mix effects and a slight decline in procurement costs. The savings from the optimisation project in production have already had an initial effect.

Research and development costs

Expenditure on research and development totalled m€ 4.2 and thus decreased by m€ 1.0 compared to the previous year (2024: m€ 5.2). These costs mainly include personnel costs, costs for services and patent fees. In addition to the significant reduction in personnel expenses due to lower royalities and the postponement in filling vacant positions, expenditure on services was also reduced.

Distribution costs

Leifheit Group

Annual report 2025

Distribution costs fell by m€ 6.8 to m€ 75.6 in the reporting period (2024: m€ 82.4). These primarily include advertising costs, commissions, marketing costs, freight out, delivery charges and expenses incurred by internal and external teams. Personnel costs fell by m€ 3.3, partly due to lower royalities. Furthermore, personnel costs and other costs in the previous year included effects from organisational changes in sales and marketing in the amount of m€ 2.0. Advertising costs and advertising subsidies were reduced by m€ 1.9. In addition, freight out fell by m€ 1.0, mainly due to lower turnover.

Administrative costs decreased by m€ 1.0 to m€ 16.5 in financial year 2025 (2024: m€ 17.5). Administrative costs include personnel costs and service costs as well as costs incurred in support of the financial and administrative functions. In this case too, personnel costs fell by m€ 1.4, due mainly to lower royalities. This was offset by higher expenses for services and acquisition costs, due also to sustainability reporting.

Other operating income and expenses

Other operating income rose by m€ 0.4 to m€ 1.8 (2024: m€ 1.4). This item mainly includes commission and licensing income as well as income from compensation for damages. The increase is mainly due to a compensation payment from a supplier for patent infringements.

At m€ 0.2, other operating expenses were at the previous year's level (2024: m€ 0.2).

Foreign currency result

The foreign currency result decreased by m€ 0.5 to m€ 0.0 in the reporting period (2024: m€ 0.5). It includes changes in the fair values of forward foreign exchange transactions, foreign currency valuations and foreign currency gains and losses realised. The effects from foreign currency valuation decreased by m€ 0.4 and from changes in the fair value of forward exchange transactions by m€ 0.1.

Interest and financial result

The interest and financial result amounted to m€ - 1.4 (2024: m€ - 0.8). This reflects the m€ 0.7 decrease in interest income from financial instruments in the reporting period to m€ 0.5 (2024: m€ 1.2) resulting from lower interest rates. In contrast, interest expenses of m€ 1.9 were just under the previous year's level (2024: m€ 2.0). Of this amount, m€ 1.7 was attributable to accrued interest on pension obligations (2024: m€ 1.8).

Income taxes

030

In financial year 2025, taxes on income decreased to m€ 2.4 (2024: m€ 3.2) in light of the decline in earnings before taxes compared to the previous year. The tax rate, which represents the ratio of taxes on income to EBT, also decreased slightly to 27.9% (2024: 28.7%).