Investor Presentation. January 2013. - Loewe AG > Aktuell

Investor Presentation. 

January 2013.

Loewe 

Investor Presentation 

Jan 2013 

Chart 2 

Loewe – Concise profile. 

Innovation with tradition. 

Loewe offers premium home media and home 

entertainment systems with award-winning design, 

innovative technology and maximum ease of use. 

Core markets for Loewe are Germany and other 

key European countries. Approximately 65% of 

sales revenues are generated in the domestic 

market. 

Founded in 1923, Loewe is based in Kronach, 

Germany, and employs approx. 1,000 persons 

mainly in its R&D, production, marketing and 

sales department. 

From the very beginning Loewe has been 

a value-oriented company.



Jan 2013 

Chart 3 

Innovation 

Competence 


Today the Loewe brand is unique due to: 

System 

Competence 

Loewe + Specialist 

retail trade 

Individuality Specialist 

Trade Concept



Jan 2013 

Chart 4 

46.00% 


Loewe shareholder structure. 

Sharp (28.83%) 

11.17% 

28.83% 

14.00% 

Management & Corporate Bodies (14.00 %) 

LaCie (11.17%) 

Freefloat (46,00%) 

Since the most recent capital increase in October 

2005, Sharp Corporation, Osaka, Japan, continues 

to hold its 28.83% stake in Loewe. 

Loewe corporate bodies, committees and families 

holding another 14.00% 

Since November 7, 2011, the French storage and 

network specialist LaCie has held 11.17% of the 

voting rights of Loewe AG. 

Analyst coverage: 

- Deutsche Bank 

- DZ Bank 

- equinet Bank 

- Goldman Sachs 

- Matelan Research 

Since July 1999, Loewe has been a listed 

company.



Jan 2013 

Chart 5 

equinet, 

Ingbert Faust 

DZ Bank, 

Thomas Maul 

Matelan Research, 

Dr. Anne Gronsi 

Deutsche Bank, 

Michael Kuhn 

Goldman Sachs, 

Rudolf Dreyer 

Loewe - Concise profile. 

Analysts` Consensus. 

Name Date 

SALES EBIT EPS 

2012 2013 2012 2013 2012 2013 

Dec 14, 2012 252,0 260,0 -20,0 0,0 -1,52 -0,19 3,00 HOLD 

Dec 14, 2012 249,6 254,6 -14,7 -5,6 -0,91 -0,41 2,50 SELL 

Dec 13, 2012 253,0 248,0 -20,9 -3,0 -1,53 -0,33 3,50 NEUTRAL 

Jun 26, 2012 293,0 303,0 0,1 4,3 -0,10 0,14 n.a. HOLD 

Jan 27, 2012 281,9 292,4 -8,5 -6,6 -0,47 -0,36 4,30 NEUTRAL 

A v e r a g e 265,9 271,6 -12,8 -2,2 -0,91 -0,23 

Target Price 

Rating 

Dec 14, 2012



Jan 2013 

Chart 6 

40 

35 

30 

25 

20 

15 

10 

5 

0 

36,5 

Development Market Share LCD-TV. 

Top Ten in Europe (10) All Electrical Retailers. 

Based on Turnover Electrical Retailers 

11,8 

10,2 10,1 

8,4 

3,7 

3,9 

3,3 3,1 2,8 

Samsung Philips Sony LG Panasonic Loewe Toshiba Grundig Sharp Metz 

Source: GfK 

01-11/11 

01-11/12 

1,4



Jan 2013 

Chart 7 

Basis of the premium strategy: 

A clear mission. 

Leading premium brand 

for individual home 

entertainment systems.



Jan 2013 

Chart 8 


A special perceived value to differentiate 

when competing with volume brands. 

Minimalistic 

Design 

Innovative 

Technology 

Exclusive 

Individuality



Jan 2013 

Chart 9 


A premium market segment with future potential. 

Market share development (value). 

Premium brands and market leaders continue to enjoy preferences. 

27,1% 28,7% 

40,1% 

2005 2006 2007 2008 2009 2010 

34,9% 

32,8% 36,4% 

2011 

High-quality 

Top-class products 

Mid-range 

Entry segment



Jan 2013 

Chart 10 

Product & Pricing. 

Loewe relevant distribution channels are 

changing. 

The German specialist retail trade loses sales share: 

Since 2006 shift of approx. 10%-points to technial superstores and other distribution channels. 

Hyper Markets 

/ Others 

Technical 

Superstores 

Classic 

Retail Trade 

17% 21% 23% 21% 20% 

47% 

36% 

2006 

48% 

31% 31% 31% 31% 

2007 

46% 

2008 

48% 

2009 

49% 

2010 

26% 

28,7% 

34,9% 

48% 

26% 

2011



Jan 2013 

Chart 11 

2013 Status 2012 


Loewe TV product line up. 

Reference Individual 

Connect 

Art 

Reference ID Individual Connect ID 

„Art ID“



Jan 2013 

Chart 12 


Strategic expansion of the product line up in 2012. 

Core segment Loewe TV: 

Introduction of the TV-line Connect ID which is 

unique in terms of individuality options, at a price 

range starting from EUR 1,500. 

Conceptual redesign of the Xelos product line as 

well as expansion to the large screen segment. 

Audiodesign: 

− New product category 

− New target groups 

− New retailers 

− New distribution channels (Apple, Online) 

Audiodesign faciliates the entry into the Loewe 

premium world 

Loewe meets the requirements of a significantly 

broader and younger target group.



Jan 2013 

Chart 13 


Loewe Individual Design. 

Individualization = more value = more customers. 

Top customer benefits: 

Individualization is the central principle of the 

Loewe range and opens up possibilities for unique, 

tailor-made home entertainment solutions. 

This is due to our modular production concept, 

which offers a variety of personalization potential 

for every product line. 

The opportunities for individualization are growing: 

now the customer can choose from a range of 

finishes or even personalize every aspect of the 

individual design. 

This is how Loewe ID distinguishes between its 

product lines: the higher valued the product line, 

the greater the possibilities for personalization.



Jan 2013 

Chart 14 

ID Counter 


Loewe Individual Design. 

Individualization = more value = more customers. 

ID Highlight Presentation ID Process



Jan 2013 

Chart 15 


Loewe Connect ID. 

− Very successful market launch 

− Good sell-through performance 

− Best-in-class marketing 

− New and younger target group 

(Variety of colors, price term) 

Competivite advantage individuality.



Jan 2013 

Chart 16 




Masterful Elegant Contemporary Expressive Artistic



Jan 2013 

Chart 17 


Loewe Individual. 

Top customer benefits: 

With the new Loewe Individual each customer can 

configure their home entertainment system. 

Technical Overview: 

Full-HD-400Hz technology with E-LED backlight 

DVB-T/T2/C/S/S2, analog incl. 2x CI+ V.1.3. 

2x40 watts music power 

3D Active Shutter Technology incl. 2D/3D conversion 

DR+ with 750 GB harddisc and DR+ Streaming 

GUI 2012 incl. new control unit and Home screen 

MediaHome via USB/LAN/WLAN (DLNA) 

iPad control 

4xHDMI, 2x CI+, LAN/WLAN, 3x USB



Jan 2013 

Chart 18 


Loewe Reference ID. 

Top selling points: 

Every premium brand earns its name by offering a 

relevant added value that no other brand does. 

The Loewe added value is individual design. 

Every premium brand has to prove that they truly 

are premium. And this has to be done in the right 

segment: in the absolute top class. 

BMW has the 7 series, Mercedes the S class and 

Audi the A8. The new Loewe Reference ID 

powerfully illustrates Loewe’s genuine mastery 

of personalization. 

The Loewe Reference ID is a true high-end model. 

It is a device that will win design prizes and dazzle 

in communication. In other words, a beacon of 

light. 

Reference ID - the high-end product for 

high-end requirements.



Jan 2013 

Chart 19 


Loewe GUI & AssistEasy Remote Control. 

New Loewe GUI: 

Joy of use with the new user interface: 

- customizable Home Screen 

- semitransparent menus 

- musicplayer with Coverflow 

- photoviewer with collages 

- HD animations 

- system user interface design 

New AssistEasy: 

- operation of the important functions via cursor 

navigation 

- for TVs, SoundBox, SoundVision and AirSpeaker 

- available from 11/2012



Jan 2013 

Chart 20 


Loewe at the IFA 2012 in Berlin.



Jan 2013 

Chart 21 


Loewe at the IFA 2012 in Berlin. 

Cooperation Reference Fazioli Limited Edition Connect ID Strenesse 

Cooperation Individual Gottschalk 

Audio Design



Jan 2013 

Chart 22 


Prizes and design awards.



Jan 2013 

Chart 23 

Placement – Premium Distriubtion. 

Development of Loewe Galeries.



Jan 2013 

Chart 24 

Placement – Premium Distribution. 

Distribution / Sales Channels. 

Country-specific distribution strategy: 

Different retail structure in Europe 

− Qualified retailers 

− Technical superstores + chains 

− Trade cooperations 

− Online sales 

Online sales: 

1. Step: Apple online stores 

2. Step: Audiodesign at Amazon + Otto July 2012 

3. Step: Partial selection of TV assortment at Otto 

since Sep 1, 2012



Jan 2013 

Chart 25 

Placement – Premium Distribution. 

Distribution / Sales Channels. 

Growth markets: 

− First payoffs in Russia 

− Precise steps in India 

− Veryfying and evaluating China 

China: 

− Subsidiary founded in Hong Kong 

− Company in Shenzhen founded 

− Purchasing department + showroom 

− Chinese team: 10 – 15 people 

− Target: to be faster, more innovative and 

more cost-effective



Jan 2013 

Chart 26 

Promotion - Premium Communication. 

The role of Loewe communication is to bring 

systematic individuality to life.



Jan 2013 

Chart 27 

Financials Q3 2012. 

Consolidated Income Statement. 

Jul - Sep 2012 Jul - Sep 2011 Jan - Sep 2012 Jan - Sep 2011 

mn EUR % mn EUR % mn EUR % mn EUR % 

Sales 47,4 100,0 67,4 100,0 173,0 100,0 186,1 100,0 

Cost of Sales -39,0 -82,3 -53,1 -78,8 -131,9 -76,2 -144,9 -77,9 

Gross margin 8,4 17,7 14,3 21,2 41,1 23,8 41,2 22,1 

Selling expenses -15,0 -31,7 -16,0 -23,7 -45,5 -26,4 -46,4 -24,9 

General and admin. expenses -1,7 -3,5 -1,8 -2,7 -5,9 -3,4 -6,5 -3,5 

Other operating income -0,6 -1,3 -0,4 -0,6 -0,8 -0,5 0,0 0,0 

Income from equity investments 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 

EBIT -8,9 -18,8 -3,9 -5,8 -11,1 -6,5 -11,7 -6,3 

Interest income 0,0 0,0 0,1 0,1 0,2 0,1 0,3 0,2 

Interest expenses -0,8 -1,7 -0,5 -0,7 -1,9 -1,1 -1,6 -0,9 

Earnings before taxes -9,7 -20,5 -4,3 -6,4 -12,8 -7,5 -13,0 -7,0 

Income taxes 2,0 4,2 0,4 0,6 2,7 1,6 1,3 0,7 

Net income for the period -7,7 -16,3 -3,9 -5,8 -10,1 -5,9 -11,7 -6,3 

Sales down by 7% to EUR 173 mn 

Value of LCD TV market in Europe 

declines by 7% 

Negative Q3 EBIT of EUR -8,9 mn 

due to the significant decline in 

sales and production volume 

Successful presence at IFA 2012 

Strategic development of the 

Loewe Group continues according 

to plan 

Entire CE-industry under pressure 

in Q3 2012 (Sony, Sharp, 

Panasonic, B&O etc.)



Jan 2013 

Chart 28 

Outlook 2013. 

Market forecast. 

Further growing large (>37“) and super large (>60“) 

screen segment of the LCD-TV market in Europe. 

Growth impulse by new features like super high 

resolution panels and Hybrid-TVs, 

e.g. Smart TVs, they will have a similar positive 

development than Smartphones.



Jan 2013 

Chart 29 

Outlook. 

Mid-term upside potential. 

Loewe has great potential in international markets. 

Loewe offers the most individual home 

entertainment systems with growing audio segment. 

Loewe is the leading premium brand 

of the European consumer electronics industry.



Jan 2013 

Chart 30 

Outlook 2013 / 2014. 

2013 

2014 

− Slight revenue growth 

− Target: break even operating profit 

(excluding restructuring costs) 

− Further revenue growth 

− Positive operating profit



Jan 2013 

Chart 31 

Corporate Calendar 2013. 

Date Event Location 

March 21, 2013 Financial Statements Press Conference - 9:30h a.m. Munich 

DVFA Analysts' Conference - 4:00h p.m. Frankfurt 

May 7, 2013 Group Interim Report 3M 2013 *) Kronach 

June 11, 2013 Annual Shareholders' Meeting - 11:00h a.m. Munich 

August 1, 2013 Group Interim Report First Half 2013 *) Kronach 

November 5, 2013 Group Interim Report 9M 2013 *) Kronach 

*) conference call at 10:00h am local time each

Loewe Investor Relations. 

Ticker symbol: LOE +++ Security code: 649410 +++ ISIN Code: DE 0006494107. 

Loewe shares are traded in the Prime Segment of the German Stock Exchange. 

Loewe AG +++ Investor Relations +++ Industriestrasse 11 +++ 96317 Kronach +++ Germany 

Please feel free to contact: Axel Gentzsch +++ Anja Fröba 

Phone: +49 9261 99-984 +++ Fax: +49 9261 99-994 

Mail: ir@loewe.de +++ Web: www.loewe.tv/de 

Follow: https://twitter.com/#!/Loewe +++ Like: http://www.youtube.com/loewe

Investor Presentation. January 2013. - Loewe AG > Aktuell

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