Investor Presentation

May 2017

2

Disclaimers

This document and any related oral presentation does not constitute an offer or invitation to subscribe for, purchase or otherwise acquire any debt or equity securities of Leaf Group Ltd. (“Leaf Group” or the “Company”) and nothing contained herein or in the related oral presentation shall form the basis of any contract or commitment.

The distribution of this document and any related oral presentation in certain jurisdictions may be restricted by law and persons into whose possession this document or any related oral presentation comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction.

The information contained herein does not constitute investment, legal, accounting, regulatory, taxation or other advice and the information does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the information. You are solely responsible for seeking independent professional advice in relation to the information and any action taken on the basis of the information.

This presentation contains certain forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the Company’s future results of operations and financial position, business strategy, plans and objectives for future operations, are forward-looking statements. You should not rely upon forward-looking statements as guarantees of future performance. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those contained in any forward-looking statements, including those described under the heading “Risk Factors” in the Company’s periodic reports filed from time to time with the Securities and Exchange Commission (the “SEC”), which are incorporated herein by reference. Moreover, the Company operates in a very competitive and rapidly changing environment and new risks emerge from time to time. In light of these risks, uncertainties and assumptions, the forward-looking statements included in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in the Company’s expectations.

The Company is publicly traded on the New York Stock Exchange under the ticker symbol “LFGR” and is a registrant under the rules and regulations promulgated by the SEC. Before evaluating whether you should consider an investment in the Company’s securities, you should read all of the disclosures set forth in the Company’s annual, quarterly and periodic reports filed with the SEC, including the disclosures under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Company’s SEC filings can be found at www.sec.gov and ir.leafgroup.com.

3

Our Mission

We build branded platforms for communities of creators to reach passionate audiences in large and growing lifestyle categories

4

Our Portfolio

Marketplace Model(1)

58% of total revenue in Q1’17 $16M in Revenue in Q1’17, +18% Y/Y

Ad Supported Model 42% of total revenue in Q1’17

$11M in Revenue in Q1’17, -1% Y/Y(2)

(1) Metrics exclude Deny Designs which was acquired on May 1, 2017 (2) Revenue is shown on a pro forma basis net of Cracked and certain other non-strategic properties that were disposed of in 2016 (3) Average monthly unique visitors in the U.S. reached by all Leaf Group properties in Q1’17 across desktop and mobile (Source: January– March 2017 U.S. comScore)

Marketplaces Media

Content Partners

52M Uniques (3)

5

Key Statistics

Approximately 52M(1) Monthly Unique Visitors

Approximately $17.0M(3) Paid to Artists in 2016

Approximately 320,000(2) Artists

$27M Q1’17(4) Diversified Revenue Mix Clean Balance Sheet Employees

$0.0M

$41.5M

–

$10M

$20M

$30M

$40M

$50M

Debt Cash–

100

200

300

400

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

As of 3/31/17

Streamlining Operations

(1) Average monthly unique visitors in the U.S. reached by all Leaf Group properties in Q1’17 across desktop and mobile (Source: January– March 2017 U.S. comScore) (2) Total Artists: number of active Artists for Society6 and Saatchi Art in 2016; based on internal data (3) Total paid to artists: full year 2016 for Society6 and Saatchi Art; based on internal data (4) Revenue is shown on a pro forma basis net of Cracked and certain other non-strategic properties that were disposed of in 2016

6

Strong Media Brands With Passionate Audiences

#4 27M

#5 12M

#2 1.5M

(1) Represents numerical ranking in applicable Ad Supported Category (Livestrong - Health Information; eHow -Livestyle Home; Sapling (as eHow Finance) - Personal Finance; Cuteness - Lifestyle Pets) and Average monthly unique visitors in the US across desktop and mobile (Source: January – March 2017 US comScore).

#3 3M

Apr 2017

7

Reaching Audiences Across Multiple Platforms and Formats G

row

ing

Aud

ienc

e

• Produced over 250 videos in Q1’17 • Over 200M video views on Facebook and YouTube in Q1’17 • In-house studio and production teams

Video

• 8M followers on Facebook, Instagram, Pinterest and YouTube

• Engaged with 25M users on Facebook in Q1’17 • Preferred partner with Pinterest

Social

• Over 1M articles that help people with everyday questions • Established brands to consumers on search engines • Continuing to invest to improve corpus and increase value

Content Library

8

#4 in Health & Wellness Category(1)

Revenue +45% Y/Y in Q1’17

Q1’17 27M Avg.

Monthly Uniques

+ 4% Y/Y(2) (1) Among ad-supported sites (Source: March 2017 U.S. comScore) (2) Average monthly unique visitors in the US across desktop and mobile (Source: January –

March 2017 US comScore).

9

6 Unique Brands for

How to Everything

Video Views Up 28%

Y/Y(1)

Facebook Followers Up 110%

Y/Y to 2M(2)

(1) Total monthly video views on Facebook and YouTube, or on Leaf Group or third party sites via YouTube or any other embedded video player, for January – March 2017. Includes the eHow vertical sites and other YouTube channels affiliated with eHow or the other vertical sites.

(2) Source: Facebook Q1’17

Content Partners

10

Over 200M Visits Across Partner Sites in Q1 2017(1)

Multi-year Partnerships with

Over a Dozen Publishers

24 Sites Spanning Multiple

Categories

(1) Source: Internal Data – Google Analytics

11

Media Traffic And Revenues Are Growing

ComScore Monthly Uniques(2)

(in millions)

Media Revenues Pro Forma (1)

$11.4 $11.4

$0.0

$2.5

$5.0

$7.5

$10.0

$12.5

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

(1) Revenue is shown on a pro forma basis net of Cracked and certain other non-strategic properties that were disposed of in 2016. (2) Source: comScore; Represents unique visitors in the U.S. reached by all Leaf Group properties. Properties sold include Cracked and certain other non-strategic properties that were disposed of in 2016.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Pro Forma Properties Sold

( $ in millions)

12

Opportunity For Future Improvement In Monetization

Select Advertising Partners

$1.00

DIRECT BRAND

Monetization Ad Stack(1)

$0.55 - $0.70

PROGRAMMATIC

GOOGLE ADSENSE

$0.50 - $0.70

THIRD PARTY

(1) Source: Internal Data as of Q1’17. CPMs are based on relative scale with Direct Brand CPMs equal to $1.00.

$0.20 - $0.30

13

Marketplaces: Building Brands in Art, Design & Decor

Category Home Décor, Accessories & Apparel

Home Décor & Accent Products Original Artwork

Addressable Market $27B Online Home Goods Market(1)

$27B Online Home Goods Market(1) $35B Art Market(2)

Core Demographic Female Millennials

Female Millennials & GenX GenX & Baby Boomers

Gross Transaction Value(3) $68M Not Disclosed $18M

Average Order Value(4) $57 $130 $1,200

Revenue Growth(5) 23% Not Disclosed 36%

(1) Source: eMarketer, 2015 data. (2) Source: Global Art Sales less Global Auction sales, TEFAF 2016. (3) Gross Transaction Value is shown on a trailing twelve months basis for Q2’16 – Q1’17. (4) Average Order Value for Society6 and Saatchi is as of Q1’17; Deny Designs is for FY16. (5) Revenue growth is shown on a trailing twelve months basis (Q2’16 – Q1’17 vs Q2’15 – Q1’16).

14

Global Community of Over 75,000

Artists with $1.9B of Art Available for

Sale

Average Order Value ~$1,200

29% Y/Y Revenue Growth in Q1’17

Source: Figures based on internal data for the quarter ended March 31, 2017

The Other Art Fair

Acquired 2016

15

Artist-driven marketplace for

home goods and accent products

Average Order Value ~$130(1)

Strong wholesale and retail

partnerships

(1) Source: Deny Designs, FY16.

16

240,000 Artists and 3.9M Original

Designs

Over 200,000 Customers in

Q1’17

+20% Y/Y

Over $14M Revenue

Q1’17

+17% Y/Y

Source: Figures based on internal data for the quarter ended March 31, 2017.

17

Marketplaces Growing Strongly

Revenue ($M) Total Transactions(1)

$10.7

$15.9

$0

$5

$10

$15

$20

Q1'15 Q1'16 Q1'17

+18% Y/Y

182

268

150

170

190

210

230

250

270

290

Q1'15 Q1'16 Q1'17

+18% Y/Y

(1) Number of transactions is defined as the total number of Marketplaces transactions successfully completed online by a customer during the applicable period. Excludes transactions from The Other Art Fair.

(in millions) (in thousands)

Financials

19

Clear Signs Of Revenue Growth

(in millions)

(1) Media revenue is shown on a pro forma basis net of Cracked and certain other non-strategic properties that were disposed of in 2015 and 2016.

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

FY15 FY16

Media Marketplaces Disposed Assets

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Q1'16 Q1'17

Media Marketplaces Disposed Assets

2015 vs 2016 Q1’16 vs Q1’17

Pro forma revenue: flat y/y

Pro forma revenue: +9% y/y

(1) (1)

20

Cost Breakdown

Total Non-GAAP Expenses Excl. Product Costs(2)

(in millions)

Headcount(1)

373

266

–

100

200

300

400

Q1'15 Q1'16 Q1'17

(1) Headcount provided as of the end of the relevant period. (2) Non-GAAP expenses excluding product costs are GAAP expenses less depreciation, amortization, stock based compensation and product costs.

$26.2

$21.4

$15

$20

$25

$30

Q1'15 Q1'16 Q1'17

21

Balance Sheet Summary (in millions)

As of March 31, 2017

(1) Includes intangible assets, net, goodwill and other assets

Assets Liabilities and Stockholders’ Equity

Cash & Cash Equivalents $ 41.5 Accounts Payable, Accrued Expenses, and Other Current Liabilities $ 14.0

Other Current Assets 12.9 Deferred Revenue 1.6

Property and Equipment, Net 11.2 Non-current Liabilities 1.6

Other Long Term Assets(1) 22.0 Stockholders’ Equity 70.4

Total Assets $ 87.6 Total Liabilities and Stockholders’ Equity $ 87.6

22

Executive Leadership

Sean Moriarty Chief Executive Officer Prior: • CEO at Saatchi Art • President, CEO, EVP, Tech and COO

of Ticketmaster • EVP, Technology at Citysearch

Brian Pike Chief Operating Officer & Chief Technology Officer

Daniel Weinrot EVP, Legal & General Counsel

Prior: • CTO at Rubicon Project • CTO at Ticketmaster

Prior: • VP & Deputy General Counsel at Las

Vegas Sands Corp. • Corporate associate at Latham &

Watkins LLP

Tawn Albright EVP, Corporate Development Prior: • CEO and founding partner at

Rockhouse Partners • Executive VP for Etix

Jill Angel EVP, People Prior: • VP Operations at Saatchi Art • Team leader at Cocodot, Swirl by

DailyCandy, and GSI Commerce

Dion Camp Sanders EVP, Marketplaces Prior: • Vice President, Emerging Businesses

within the Labs Group at Disney • Founder and CEO of Pacific Edison

Prior: • VP, Finance at Yahoo! • Investment banker with Savvian and

JPMorgan

Jeff Misthal SVP, Finance