Leaf : Citi TMT West Presentation

CITI CONFERENCE

J A N U A R Y 2 0 2 1

Disclaimers

This presentation contains, and our officers and representatives during this presentation may from time to time make "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements set forth in this press release include, among other things, statements regarding potential synergies achieved from acquisitions, the impact of strategic operational changes and the Company's future financial performance. In addition, statements containing words such as "guidance," "may," "believe," "anticipate," "expect," "intend," "plan," "project," "projections," "business outlook," and "estimate" or similar expressions constitute forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. These forward-looking statements involve risks and uncertainties regarding the Company's future financial performance; could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Leaf Group's operations, markets, products and services; and are based on current expectations, estimates and projections about the Company's industry, financial condition, operating performance and results of operations, including certain assumptions related thereto. Potential risks and uncertainties that could affect the Company's operating and financial results are described in Leaf Group's annual report on Form 10-K for the fiscal year ending December 31, 2019 filed with the Securities and Exchange Commission (http://www.sec.gov) on March 16, 2020, as such risks and uncertainties may be updated from time to time in Leaf Group's quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, including, without limitation, information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." These risks and uncertainties include, among others: risks associated with political and economic instability domestically and internationally including those resulting from the COVID-19 pandemic, which have and could lead to fluctuations in the availability of credit, decreased business and consumer confidence and increased unemployment; the Company's ability to execute its business plan to return to compliance with the continued listing criteria of the New York Stock Exchange ("NYSE"); the Company's ability to continue to comply with applicable listing standards within the available cure period; changes by the Small Business Administration or other governmental authorities regarding the Coronavirus Aid, Relief and Economic Security Act of 2020 (the "CARES Act"), the Paycheck Protection Program ("PPP") or related administrative matters; the Company's ability to comply with the terms of the PPP loan and the CARES Act, including to use the proceeds of the PPP loan; the Company's ability to successfully drive and increase traffic to its marketplaces and media properties; changes in the methodologies of internet search engines, including ongoing algorithmic changes made by Google, Bing and Yahoo!; the Company's ability to attract new and repeat customers and artists to its marketplaces and successfully grow its marketplace businesses; the potential impact on advertising-based revenue from lower ad unit rates, a reduction in online advertising spending, a loss of advertisers, lower advertising yields, increased availability of ad blocking software, particularly on mobile devices and/or ongoing changes in ad unit formats; the Company's dependence on various agreements with a specific business partner for a significant portion of its advertising revenue; the effects of shifting consumption of media content and online shopping from desktop to mobile devices and/or social media platforms; the Company's history of incurring net operating losses; the Company's ability to obtain capital when desired on favorable terms; potential write downs, reserves against or impairment of assets including receivables, goodwill, intangibles (including media content) or other assets; the Company's ability to effectively integrate, manage, operate and grow acquired businesses; the Company's ability to retain key personnel; the Company's ability to prevent any actual or perceived security breaches; the Company's ability to expand its business internationally; the Company's ability to generate long-term value for its stockholders; and ongoing actions taken and any future actions that may be taken by activist stockholders. From time to time, the Company may consider acquisitions or divestitures that, if consummated, could be material. Any forward-looking statements regarding financial metrics are based upon the assumption that no such acquisition or divestiture is consummated during the relevant periods. If an acquisition or divestiture were consummated, actual results could differ materially from any forward-looking statements. Any forward-looking statement made by the Company in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to revise or update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law, and may not provide this type of information in the future.

Non-GAAP Disclosure:

This presentation includes reference to Adjusted EBITDA and Segment Operating Contribution, each of which is a non-GAAP measure. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP measures used by Leaf Group may differ from the non-GAAP measures used by other companies. Leaf Group considers these non-GAAP financial measures to be important because they provide a useful measure of the operating performance of Leaf Group and are used by Leaf Group's management for that purpose, as discussed in greater detail in our earnings releases, which can be found on the Investor Relations section of Leaf Group's corporate website at http://ir.leafgroup.com. In addition, a reconciliation of non-GAAP measures to the most directly comparable GAAP measures is available in the Appendix to this presentation.

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Digital First Brands in Rapidly Growing Lifestyle Categories

Leaf Group Reaches One-fourth of US Internet Population(1)

Design First, Made-To-Order Home Goods Marketplace

Fitness and Healthy Living Digital Brand

Online Art Gallery for Emerging Artists	54(1)

Million

Home Design Digital Brand

Wellness and Lifestyle Digital Brand

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1) ComScore November 2020

Proven, Multi-Brand Growth Model

EXAMPLE

BRANDS

LIFESTYLE	Technology, Gaming &		Technology, Health,	Dating, Publishing,
Automotive, Health,	Security,	Home, Art and Design,
Entertainment, Music,	Home Services,
CATEGORIES	Legal, Home/Travel	Communications,	Fitness and Wellness
Creative & Photography	Information Services
	Martech

Customer understanding and scale can drive a diversified group of brands

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