Investor Presentation. January 2013. - Loewe AG > Aktuell
Investor Presentation. January 2013. - Loewe AG > Aktuell
Investor Presentation. January 2013. - Loewe AG > Aktuell
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<strong>Investor</strong> <strong>Presentation</strong>.<br />
<strong>January</strong> <strong>2013.</strong>
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 2<br />
<strong>Loewe</strong> – Concise profile.<br />
Innovation with tradition.<br />
<strong>Loewe</strong> offers premium home media and home<br />
entertainment systems with award-winning design,<br />
innovative technology and maximum ease of use.<br />
Core markets for <strong>Loewe</strong> are Germany and other<br />
key European countries. Approximately 65% of<br />
sales revenues are generated in the domestic<br />
market.<br />
Founded in 1923, <strong>Loewe</strong> is based in Kronach,<br />
Germany, and employs approx. 1,000 persons<br />
mainly in its R&D, production, marketing and<br />
sales department.<br />
From the very beginning <strong>Loewe</strong> has been<br />
a value-oriented company.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 3<br />
Innovation<br />
Competence<br />
<strong>Loewe</strong> – Concise profile.<br />
Today the <strong>Loewe</strong> brand is unique due to:<br />
System<br />
Competence<br />
<strong>Loewe</strong> + Specialist<br />
retail trade<br />
Individuality Specialist<br />
Trade Concept
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 4<br />
46.00%<br />
<strong>Loewe</strong> – Concise profile.<br />
<strong>Loewe</strong> shareholder structure.<br />
Sharp (28.83%)<br />
11.17%<br />
28.83%<br />
14.00%<br />
Management & Corporate Bodies (14.00 %)<br />
LaCie (11.17%)<br />
Freefloat (46,00%)<br />
Since the most recent capital increase in October<br />
2005, Sharp Corporation, Osaka, Japan, continues<br />
to hold its 28.83% stake in <strong>Loewe</strong>.<br />
<strong>Loewe</strong> corporate bodies, committees and families<br />
holding another 14.00%<br />
Since November 7, 2011, the French storage and<br />
network specialist LaCie has held 11.17% of the<br />
voting rights of <strong>Loewe</strong> <strong>AG</strong>.<br />
Analyst coverage:<br />
- Deutsche Bank<br />
- DZ Bank<br />
- equinet Bank<br />
- Goldman Sachs<br />
- Matelan Research<br />
Since July 1999, <strong>Loewe</strong> has been a listed<br />
company.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 5<br />
equinet,<br />
Ingbert Faust<br />
DZ Bank,<br />
Thomas Maul<br />
Matelan Research,<br />
Dr. Anne Gronsi<br />
Deutsche Bank,<br />
Michael Kuhn<br />
Goldman Sachs,<br />
Rudolf Dreyer<br />
<strong>Loewe</strong> - Concise profile.<br />
Analysts` Consensus.<br />
Name Date<br />
SALES EBIT EPS<br />
2012 2013 2012 2013 2012 2013<br />
Dec 14, 2012 252,0 260,0 -20,0 0,0 -1,52 -0,19 3,00 HOLD<br />
Dec 14, 2012 249,6 254,6 -14,7 -5,6 -0,91 -0,41 2,50 SELL<br />
Dec 13, 2012 253,0 248,0 -20,9 -3,0 -1,53 -0,33 3,50 NEUTRAL<br />
Jun 26, 2012 293,0 303,0 0,1 4,3 -0,10 0,14 n.a. HOLD<br />
Jan 27, 2012 281,9 292,4 -8,5 -6,6 -0,47 -0,36 4,30 NEUTRAL<br />
A v e r a g e 265,9 271,6 -12,8 -2,2 -0,91 -0,23<br />
Target Price<br />
Rating<br />
Dec 14, 2012
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 6<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
36,5<br />
Development Market Share LCD-TV.<br />
Top Ten in Europe (10) All Electrical Retailers.<br />
Based on Turnover Electrical Retailers<br />
11,8<br />
10,2 10,1<br />
8,4<br />
3,7<br />
3,9<br />
3,3 3,1 2,8<br />
Samsung Philips Sony LG Panasonic <strong>Loewe</strong> Toshiba Grundig Sharp Metz<br />
Source: GfK<br />
01-11/11<br />
01-11/12<br />
1,4
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 7<br />
Basis of the premium strategy:<br />
A clear mission.<br />
Leading premium brand<br />
for individual home<br />
entertainment systems.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 8<br />
Basis of the premium strategy:<br />
A special perceived value to differentiate<br />
when competing with volume brands.<br />
Minimalistic<br />
Design<br />
Innovative<br />
Technology<br />
Exclusive<br />
Individuality
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 9<br />
Basis of the premium strategy:<br />
A premium market segment with future potential.<br />
Market share development (value).<br />
Premium brands and market leaders continue to enjoy preferences.<br />
27,1% 28,7%<br />
40,1%<br />
2005 2006 2007 2008 2009 2010<br />
34,9%<br />
32,8% 36,4%<br />
2011<br />
High-quality<br />
Top-class products<br />
Mid-range<br />
Entry segment
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 10<br />
Product & Pricing.<br />
<strong>Loewe</strong> relevant distribution channels are<br />
changing.<br />
The German specialist retail trade loses sales share:<br />
Since 2006 shift of approx. 10%-points to technial superstores and other distribution channels.<br />
Hyper Markets<br />
/ Others<br />
Technical<br />
Superstores<br />
Classic<br />
Retail Trade<br />
17% 21% 23% 21% 20%<br />
47%<br />
36%<br />
2006<br />
48%<br />
31% 31% 31% 31%<br />
2007<br />
46%<br />
2008<br />
48%<br />
2009<br />
49%<br />
2010<br />
26%<br />
28,7%<br />
34,9%<br />
48%<br />
26%<br />
2011
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 11<br />
2013 Status 2012<br />
Product & Pricing.<br />
<strong>Loewe</strong> TV product line up.<br />
Reference Individual<br />
Connect<br />
Art<br />
Reference ID Individual Connect ID<br />
„Art ID“
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 12<br />
Product & Pricing.<br />
Strategic expansion of the product line up in 2012.<br />
Core segment <strong>Loewe</strong> TV:<br />
Introduction of the TV-line Connect ID which is<br />
unique in terms of individuality options, at a price<br />
range starting from EUR 1,500.<br />
Conceptual redesign of the Xelos product line as<br />
well as expansion to the large screen segment.<br />
Audiodesign:<br />
− New product category<br />
− New target groups<br />
− New retailers<br />
− New distribution channels (Apple, Online)<br />
Audiodesign faciliates the entry into the <strong>Loewe</strong><br />
premium world<br />
<strong>Loewe</strong> meets the requirements of a significantly<br />
broader and younger target group.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 13<br />
Product & Pricing.<br />
<strong>Loewe</strong> Individual Design.<br />
Individualization = more value = more customers.<br />
Top customer benefits:<br />
Individualization is the central principle of the<br />
<strong>Loewe</strong> range and opens up possibilities for unique,<br />
tailor-made home entertainment solutions.<br />
This is due to our modular production concept,<br />
which offers a variety of personalization potential<br />
for every product line.<br />
The opportunities for individualization are growing:<br />
now the customer can choose from a range of<br />
finishes or even personalize every aspect of the<br />
individual design.<br />
This is how <strong>Loewe</strong> ID distinguishes between its<br />
product lines: the higher valued the product line,<br />
the greater the possibilities for personalization.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 14<br />
ID Counter<br />
Product & Pricing.<br />
<strong>Loewe</strong> Individual Design.<br />
Individualization = more value = more customers.<br />
ID Highlight <strong>Presentation</strong> ID Process
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 15<br />
Product & Pricing.<br />
<strong>Loewe</strong> Connect ID.<br />
− Very successful market launch<br />
− Good sell-through performance<br />
− Best-in-class marketing<br />
− New and younger target group<br />
(Variety of colors, price term)<br />
Competivite advantage individuality.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 16<br />
<strong>Loewe</strong> Connect ID.<br />
Product & Pricing.<br />
<strong>Loewe</strong> Connect ID.<br />
Masterful Elegant Contemporary Expressive Artistic
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 17<br />
Product & Pricing.<br />
<strong>Loewe</strong> Individual.<br />
Top customer benefits:<br />
With the new <strong>Loewe</strong> Individual each customer can<br />
configure their home entertainment system.<br />
Technical Overview:<br />
Full-HD-400Hz technology with E-LED backlight<br />
DVB-T/T2/C/S/S2, analog incl. 2x CI+ V.1.3.<br />
2x40 watts music power<br />
3D Active Shutter Technology incl. 2D/3D conversion<br />
DR+ with 750 GB harddisc and DR+ Streaming<br />
GUI 2012 incl. new control unit and Home screen<br />
MediaHome via USB/LAN/WLAN (DLNA)<br />
iPad control<br />
4xHDMI, 2x CI+, LAN/WLAN, 3x USB
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 18<br />
Product & Pricing.<br />
<strong>Loewe</strong> Reference ID.<br />
Top selling points:<br />
Every premium brand earns its name by offering a<br />
relevant added value that no other brand does.<br />
The <strong>Loewe</strong> added value is individual design.<br />
Every premium brand has to prove that they truly<br />
are premium. And this has to be done in the right<br />
segment: in the absolute top class.<br />
BMW has the 7 series, Mercedes the S class and<br />
Audi the A8. The new <strong>Loewe</strong> Reference ID<br />
powerfully illustrates <strong>Loewe</strong>’s genuine mastery<br />
of personalization.<br />
The <strong>Loewe</strong> Reference ID is a true high-end model.<br />
It is a device that will win design prizes and dazzle<br />
in communication. In other words, a beacon of<br />
light.<br />
Reference ID - the high-end product for<br />
high-end requirements.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 19<br />
Product & Pricing.<br />
<strong>Loewe</strong> GUI & AssistEasy Remote Control.<br />
New <strong>Loewe</strong> GUI:<br />
Joy of use with the new user interface:<br />
- customizable Home Screen<br />
- semitransparent menus<br />
- musicplayer with Coverflow<br />
- photoviewer with collages<br />
- HD animations<br />
- system user interface design<br />
New AssistEasy:<br />
- operation of the important functions via cursor<br />
navigation<br />
- for TVs, SoundBox, SoundVision and AirSpeaker<br />
- available from 11/2012
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 20<br />
Product & Pricing.<br />
<strong>Loewe</strong> at the IFA 2012 in Berlin.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 21<br />
Product & Pricing.<br />
<strong>Loewe</strong> at the IFA 2012 in Berlin.<br />
Cooperation Reference Fazioli Limited Edition Connect ID Strenesse<br />
Cooperation Individual Gottschalk<br />
Audio Design
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 22<br />
Product & Pricing.<br />
Prizes and design awards.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 23<br />
Placement – Premium Distriubtion.<br />
Development of <strong>Loewe</strong> Galeries.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 24<br />
Placement – Premium Distribution.<br />
Distribution / Sales Channels.<br />
Country-specific distribution strategy:<br />
Different retail structure in Europe<br />
− Qualified retailers<br />
− Technical superstores + chains<br />
− Trade cooperations<br />
− Online sales<br />
Online sales:<br />
1. Step: Apple online stores<br />
2. Step: Audiodesign at Amazon + Otto July 2012<br />
3. Step: Partial selection of TV assortment at Otto<br />
since Sep 1, 2012
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 25<br />
Placement – Premium Distribution.<br />
Distribution / Sales Channels.<br />
Growth markets:<br />
− First payoffs in Russia<br />
− Precise steps in India<br />
− Veryfying and evaluating China<br />
China:<br />
− Subsidiary founded in Hong Kong<br />
− Company in Shenzhen founded<br />
− Purchasing department + showroom<br />
− Chinese team: 10 – 15 people<br />
− Target: to be faster, more innovative and<br />
more cost-effective
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 26<br />
Promotion - Premium Communication.<br />
The role of <strong>Loewe</strong> communication is to bring<br />
systematic individuality to life.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 27<br />
Financials Q3 2012.<br />
Consolidated Income Statement.<br />
Jul - Sep 2012 Jul - Sep 2011 Jan - Sep 2012 Jan - Sep 2011<br />
mn EUR % mn EUR % mn EUR % mn EUR %<br />
Sales 47,4 100,0 67,4 100,0 173,0 100,0 186,1 100,0<br />
Cost of Sales -39,0 -82,3 -53,1 -78,8 -131,9 -76,2 -144,9 -77,9<br />
Gross margin 8,4 17,7 14,3 21,2 41,1 23,8 41,2 22,1<br />
Selling expenses -15,0 -31,7 -16,0 -23,7 -45,5 -26,4 -46,4 -24,9<br />
General and admin. expenses -1,7 -3,5 -1,8 -2,7 -5,9 -3,4 -6,5 -3,5<br />
Other operating income -0,6 -1,3 -0,4 -0,6 -0,8 -0,5 0,0 0,0<br />
Income from equity investments 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0<br />
EBIT -8,9 -18,8 -3,9 -5,8 -11,1 -6,5 -11,7 -6,3<br />
Interest income 0,0 0,0 0,1 0,1 0,2 0,1 0,3 0,2<br />
Interest expenses -0,8 -1,7 -0,5 -0,7 -1,9 -1,1 -1,6 -0,9<br />
Earnings before taxes -9,7 -20,5 -4,3 -6,4 -12,8 -7,5 -13,0 -7,0<br />
Income taxes 2,0 4,2 0,4 0,6 2,7 1,6 1,3 0,7<br />
Net income for the period -7,7 -16,3 -3,9 -5,8 -10,1 -5,9 -11,7 -6,3<br />
Sales down by 7% to EUR 173 mn<br />
Value of LCD TV market in Europe<br />
declines by 7%<br />
Negative Q3 EBIT of EUR -8,9 mn<br />
due to the significant decline in<br />
sales and production volume<br />
Successful presence at IFA 2012<br />
Strategic development of the<br />
<strong>Loewe</strong> Group continues according<br />
to plan<br />
Entire CE-industry under pressure<br />
in Q3 2012 (Sony, Sharp,<br />
Panasonic, B&O etc.)
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 28<br />
Outlook <strong>2013.</strong><br />
Market forecast.<br />
Further growing large (>37“) and super large (>60“)<br />
screen segment of the LCD-TV market in Europe.<br />
Growth impulse by new features like super high<br />
resolution panels and Hybrid-TVs,<br />
e.g. Smart TVs, they will have a similar positive<br />
development than Smartphones.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 29<br />
Outlook.<br />
Mid-term upside potential.<br />
<strong>Loewe</strong> has great potential in international markets.<br />
<strong>Loewe</strong> offers the most individual home<br />
entertainment systems with growing audio segment.<br />
<strong>Loewe</strong> is the leading premium brand<br />
of the European consumer electronics industry.
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 30<br />
Outlook 2013 / 2014.<br />
2013<br />
2014<br />
− Slight revenue growth<br />
− Target: break even operating profit<br />
(excluding restructuring costs)<br />
− Further revenue growth<br />
− Positive operating profit
<strong>Loewe</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
Jan 2013<br />
Chart 31<br />
Corporate Calendar <strong>2013.</strong><br />
Date Event Location<br />
March 21, 2013 Financial Statements Press Conference - 9:30h a.m. Munich<br />
DVFA Analysts' Conference - 4:00h p.m. Frankfurt<br />
May 7, 2013 Group Interim Report 3M 2013 *) Kronach<br />
June 11, 2013 Annual Shareholders' Meeting - 11:00h a.m. Munich<br />
August 1, 2013 Group Interim Report First Half 2013 *) Kronach<br />
November 5, 2013 Group Interim Report 9M 2013 *) Kronach<br />
*) conference call at 10:00h am local time each
<strong>Loewe</strong> <strong>Investor</strong> Relations.<br />
Ticker symbol: LOE +++ Security code: 649410 +++ ISIN Code: DE 0006494107.<br />
<strong>Loewe</strong> shares are traded in the Prime Segment of the German Stock Exchange.<br />
<strong>Loewe</strong> <strong>AG</strong> +++ <strong>Investor</strong> Relations +++ Industriestrasse 11 +++ 96317 Kronach +++ Germany<br />
Please feel free to contact: Axel Gentzsch +++ Anja Fröba<br />
Phone: +49 9261 99-984 +++ Fax: +49 9261 99-994<br />
Mail: ir@loewe.de +++ Web: www.loewe.tv/de<br />
Follow: https://twitter.com/#!/<strong>Loewe</strong> +++ Like: http://www.youtube.com/loewe