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Leifheit looks back on a successful 2011 financial year

• Turnover growth of 5.3% at the upper end of the target corridor

• Operative earnings (EBIT) significantly higher than previous year

• Positive outlook for 2012

Frankfurt/Nassau, 9 February 2012 – The Leifheit Group, one of the leading European brand suppliers of household goods, generated turnover of € 222.1 million in 2011 - an increase of 5.3% compared to last year’s figures (€ 210.9 million). This is at the upper end of the announced target corridor, which forecast an increase in turnover of three to five percent per annum.

Georg Thaller, Chairman of the Board of Directors at Leifheit AG: “Both of the Group’s divisions - Brand and Volume Business - contributed to this pleasing growth. Our decision to consistently focus on the development and manufacturing of brand products for selected areas the household market has proved to be the right one." Leifheit sold off its Bathroom Furnishings division in 2010.

The Brand Business division of the company, which is by far the largest and produced 76.8% of turnover in the 2011 financial year, achieved growth of 3.8% at a high level of turnover, generating € 170.5 million. The categories cleaning, laundry care and wellbeing were particularly responsible for this. 51.6% of turnover was achieved in the company’s domestic market of Germany, which simultaneously generated substantial growth of 6.0% more than the previous year’s value.

The Volume Business performed at a lower absolute level, increasing turnover by 10.4% to € 51.6 million. A major order, which was still being managed by the Brand Business in the previous year, was credited to the Volume Business in the 2011 financial year, which contributed to this increase. The main drivers of turnover in 2011 were the laundry care and the kitchen category.

Disproportionately high increase in results

The operative result before interest and taxes (EBIT) increased more rapidly than turnover according to preliminary calculations and is expected to be significantly higher than the previous year’s value. This will be boosted further by a result effect of € 2,5 million resulting from the takeover of further shares in our Czech subsidiary. “By making this move, we have demonstrated that Leifheit can generate disproportionately high increases in its results” says Dr. Claus-Otto Zacharias, CFO of Leifheit AG. “Our ongoing aim is to increase the result further until 2014 with annual sustained turnover growth of three to five percent”, explained Dr. Zacharias. The final figures for the 2011 financial year will be published by Leifheit together with its annual financial report on 29th March 2012.

New communication concept strengthens the umbrella brand Leifheit

Within the scope of the Leifheit GO strategy - Growth by Opportunities - the company has revised its umbrella brand strategy. More than every second household uses a Leifheit product. Whether for drying laundry, ironing, cleaning or in the kitchen - these practical tools are in demand all over Europe and are a familiar brand name in over 25 million households in Germany alone. This message will be the theme of the new campaign to be presented at the Ambiente Trade Fair in Frankfurt (10 - 14 February 2012): Under the motto “I trust in  Leifheit”, consumers will support the brand and their high-quality products. TV advertisements, PR and online measures will be at the centre of the activities. Before the new campaign was launched, the company carried out a major consumer study which reconfirmed that Leifheit is one of the strongest household brands. The supported brand awareness is at 88% and the values for satisfaction (91%) and buying relevance (92%) are even higher. The brand Soehnle has also achieved high recognition and satisfaction values of 82 and 93%.

The numerous awards once again received by the Leifheit and Soehnle brands during the 2011 financial year confirm the high quality of the products: These include the PlusX Award, the IF Product Design Award, the Reddot Design Award, "Kitchen Innovation of the Year” presented by Initiative LifeCare and “Product of the Year” award from pro-K.
 
Product innovation at the Ambiente Trade Fair

The company is planning several new innovations for presentation at Ambiente in the four categories laundry care, cleaning, kitchen and wellbeing. These include the premium pressure steam ironing system AirActive L Express - the lightest, at any time refillable complete system on the market. In the area of cleaning, Leifheit will present the automatic dust cleaner Power Robo static and new innovations for the Twist System. In the kitchen, Leifheit has developed a series of clever and reliable tools such as the new double-blade Easy Slicer. The show-stopper: The slicer cuts in two directions, reducing the time required by 50%.

In the area of wellbeing, Soehnle has developed its Relax range (heating and massage products). The first high-quality designer air fresheners will be presented at Ambiente 2012. Soehnle will also show its new scales, including bathroom scales which customers can design individually. Design templates can be selected at my-design.soehnle.de or customers can upload their own designs. The tailor-made design foil will be posted to the customer and is simply attached to the upper surface of the scale and changed whenever required.

Positive outlook for 2012 financial year

The Leifheit Group is still well-positioned in the current economic environment to achieve its growth and result targets in the 2012 financial year. International orientation, strong and established brands with leading market positions and solid capital backing have supported the Board of Directors’ opinion that the company will again achieve sustained growth in turnover of three to five percent in 2012, in addition to earnings (EBIT) over the previous year's values.

About Leifheit

Formed in 1959, Leifheit AG is one of the leading European suppliers of branded household products. The company is a byword for high quality innovative products with high consumer benefit and pioneering design in the core areas of cleaning, laundry care, kitchen and wellbeing. Leifheit, Dr Oetker Bakeware and Soehnle are among the best-known German brands. Besides its Brand Business segment, Leifheit AG is active in the service-oriented Volume Business segment through its French subsidiaries Birambeau and Herby. With its international branches, the Leifheit Group has some 1,100 employees.

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