Corporate | 26 February 2014 07:00

CEWE achieves all its 2013 annual targets

CEWE Stiftung & Co. KGaA / Key word(s): Preliminary Results

26.02.2014 / 07:00

CEWE achieves all its 2013 annual targets

– Successful Christmas season thanks to growth in CEWE PHOTO BOOK sales

– Strong fourth quarter: earnings after taxes increase by 27.3%

– Annual turnover rises by 4.2% to 528.6 million euros

– Online printing as a growth driver: +39.2% to 59.8 million euros

– Change in the legal form contributes 3.3 million euros to after-tax earnings

– Earnings per share, at 3.29 euros, exceed the target corridor of 2.44 to 3.06 euros

Oldenburg, 26 February 2014. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) reached or exceeded all its targets for the business year of 2013. According to preliminary calculations, turnover increased over that of the previous year by 4.2% to 528.6 million euros, and EBIT rose by 1.0% to 29.4 million euros. Without the restructuring costs for the operations in Dresden and Graudenz, EBIT would have improved by as much as 12.3% to 32.7 million euros. Earnings before tax (EBT) increased by 3.5% to EUR 27.8 million in 2013. Earnings after tax , at 21.6 million euros, also clearly exceeded the target corridor of 16 to 20 million euros, one of the reasons being the change in the legal form of the company, and earnings per share (undiluted), at 3.29 euros, were higher than ever before in the history of the company (target corridor: 2.44 to 3.06 euros). “Our strategy of using our considerable earning power in photofinishing, which even grew again, to significantly reinforce our position on the growth market for online printing is bearing fruit: in 2013 we increased turnover generated with online printing by almost 40%, to around 60 million euros. We are well on the way to reaching our target turnover of 100 million euros by 2016. We also managed to enhance our profitability, in spite of the advance payments that had to be made, thanks to the strongly growing share of added-value products such as the CEWE PHOTO BOOK, ” said Dr. Rolf Hollander, Chairman of the Board of Management of CEWE Stiftung & Co. KGaA.

Fourth quarter contributes EBIT in the amount of 33.5 million euros
CEWE again achieved record figures for its turnover and EBIT in the fourth quarter of 2013: in the first three quarterly periods, operative earnings (EBIT) were still at a negative 4.1 million euros due to the prolonged seasonal shift; with a 5.6% increase in turnover, to amount to 188.1 million euros, EBIT contributed for the fourth quarter was almost 15% higher than in the previous year, at 33.5 million euros. CEWE thus generated around 35.6 per cent of its total annual turnover and far more than 100% of its income in the fourth quarter. “We have been handling this trend towards a seasonal shift for years now, and have made our capacities much more flexible. Our flexible production is now fully focussed on the seasonal peak in the fourth quarter. We generated 76.4% more turnover in the Christmas quarter of 2013 than we did in the first quarter of the year. An excellent performance by our staff, of whom I am very proud,” emphasises Rolf Hollander. After-tax earnings in the fourth quarter increased by as much as 27.3%, to 28.1 million euros. As already announced, CEWE benefited from the tax-related advantages of the change in the legal form to become a German limited joint-stock partnership (KGaA). The change was entered in the Commercial Register with effect as of 1 October 2013. This resulted in a positive tax effect in the amount fo 3.3 million euros.

Sales targets all reached or exceeded – digital accounts for more than 95%
In 2013, CEWE produced and sold a total of 2.37 billion prints. This growth in volume thus exceeds the target corridor of 2.20-2.26 billion prints. The figure for digital prints, 2.25 billion (target: 2.1 to 2.15 billion), is matched by only 0.11 billion prints from films (target: 0.1-0.11 billion). The digital share thus exceeded 95%. The high volume of digital prints is due not least of all to the number of CEWE PHOTO BOOKS sold. This figure rose again by a good 200,000 books, to 5.8 million books (target: 5.8-6.0 million books), and the turnover per book also increased again. The larger share and a growth in demand for high-quality photo products offered as CEWE brand-name products resulted in a 6.4% increase in turnover per print, to 15.53 eurocents per print.

Sound capital ratio: 42.4%
The CEWE capital ratio was improved again, by 2.0 percentage points, to 42.4%. Dr. Hollander: “We believe that a sufficient supply of liquidity and credit facilities on the one hand and an extremely sound stock of available equity on the other hand will not only enhance our stability, it will also put CEWE in a position to consistently exploit available strategic options such as attractive opportunities for acquisitions. With the Saxoprint acquisition, we have shown that we can enhance the value of the company in the long term.”

The information is all based on preliminary results which have not yet been audited. CEWE COLOR will present full, audited annual financial statements and a forecast for the business year of 2014 during an annual report and analysts’ press conference to be held in Frankfurt am Main on 26 March 2014.

Full year of 2013 in comparison to the previous year (preliminary figures)

CEWE COLOR Group	Unit	2012	2013 target	2013 actual
Digital prints	in billion units	2.30	2.10 – 2.15	2.25
Prints from films	in billion units	0.16	0.10 – 0.11	0.11
Total prints	in billion units	2.46	2.20 – 2.26	2.37
CEWE PHOTO BOOK	in m. units	5.6	5.8 – 6.0	5.8
Turnover	in EUR m.	507.2	510 – 530	528.6
EBIT	in EUR m.	29.1	27 – 33	29.4
EBIT margin	%	5.7%	5.1% – 6.5%	5.6%
EBIT before restructuring	in EUR m.	29.1		32.6
EBIT margin before restructuring	%	5.7%		6.2%
EBT	in EUR m.	26.9	25 – 31	27.8
Earnings after tax	in EUR m.	18.8	16 – 20	21.6
Earnings per share undiluted	in euros/share	2.88	2.44 – 3.06	3.29

Fourth quarter of 2013 (preliminary figures)

CEWE COLOR Group	Unit	Q4 2012	Q4 2013	Diff. %	Diff. abs.
Digital prints	in m. units	747	759	1.5%	+12
Prints from films	in m. units	31	22	-27.9%	-9
Total prints	in m. units	778	781	0.4%	+3
CEWE PHOTO BOOK	in m. units	2.1	2.2	6%	0.1
Turnover	in EUR m.	178.2	188.1	+5.6%	+9.9
EBIT	in EUR m.	29.1	33.5	+14.9%	+4.3
EBIT margin	%	16.3%	17.8%	+1.5% pts
EBIT before restructuring	in EUR m.	29.1	33.5	+14.9%	+4.3
EBIT margin before restructuring	%	16.3%	17.8%	+1.5% pts
EBT	in EUR m.	28.7	33.0	+15.2%	+4.3
Earnings after tax	in EUR m.	22.1	28.1	+27.3%	+6.0

Percentage deviations have all been calculated at the exact values.

Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 – 2288, Fax: 0441 / 404 – 421, e-mail: IR@cewe.de

Internet: www.cewe.de , www.cewe-fotobuch.de , www.cewe-print.de , www.viaprinto.de , www.saxoprint.de

Available in app stores: The CEWE Investor Relations app for your iPad(R) or Android tablet, including annual reports and quarterly reports as well as sustainability reports.

Financial schedule:
26 March 2014 2013 Annual Report
26 March 2014 Annual report and analysts’ press report, Frankfurt/Main
3 April 2014 Deutschland Conference Bankhaus Lampe, Baden-Baden
13 May 2014 Publication of the Q1 2014 interim report
13 May 2014 Analysts’ telephone conference on Q1
4 June 2014 Annual General Meeting, Weser-Ems-Halle, Oldenburg
13 August 2014 Publication of the H1 2014 half-year financial report
13 August 2014 Analysts’ telephone conference on H1
19 September 2014 Capital Market Day @ photokina, Cologne
12 November 2014 Publication of the Q3 2014 interim report
12 November 2014 Analysts’ telephone conference on Q3
24 November 2014 German Equity Forum, Frankfurt

About CEWE : The photo and online print service company CEWE, with 11 highly-technical production operations and a staff of around 3,200 employees in 24 European countries, is both market and technological leader. In 2013 CEWE delivered around 2.37 billion prints, 5.8 million CEWE PHOTO BOOKS and photo gift articles to more than 34,000 retail partners to generate consolidated turnover of 528.6 million euros. CEWE is a “first mover” in the introduction of new digital technologies and products. In the new business segment of online printing, printed material for advertising is marketed through the sales platforms CEWE-PRINT.de , saxoprint and viaprinto. In 1961 CEWE was founded by Senator h. c. Heinz Neumüller. The company went public under the leadership of Hubert Rothärmel in 1993. CEWE Stiftung & Co. KGaA is listed on the SDAX.

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Language:	English
Company:	CEWE Stiftung & Co. KGaA
	Meerweg 30-32
	26133 Oldenburg
	Germany
Phone:	+49 (0)441 40 4-1
Fax:	+49 (0)441 40 4-42 1
E-mail:	IR@cewe.de
Internet:	www.cewe.de
ISIN:	DE0005403901
WKN:	540390
Indices:	SDAX
Listed:	Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München, Stuttgart

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