Presentation Handout 2013 (PDF) - Loewe AG > Aktuell

DVFA Analysts‘ Conference. 

Frankfurt – March 21, 2013. 

Loewe 

Bilanz-Pressekonferenz 

21. März 2013 

Folie 1

Matthias Harsch, CEO. 




Folie 2

Loewe - DVFA 

Analysts’ Conference 

March 21, 2013 

Chart 3 

Summary 2012. 

Market development 2012. 

LCD-TV-market in Europe: -10% 

Uneven market development of core markets 

LCD-TV-market Germany: +3% 

Market price stabilized at low level




Chart 4 

Summary 2012. 

Loewe market shares (in value). 

LCD-TV: 

• Europe 3.8% (2011: 3.7%) 

• Germany 7.9% (2011: 8.6%) 

Loudspeakers: 

• Europe 3.7% (2011: 4.9%) 

• Germany 9.2% (2011: 11.6%)




Chart 5 

Summary 2012. 

Key figures. 

Preliminary key figures confirmed 

Sales revenues: EUR 250 mn 

EBIT: EUR -29 mn 

Disparate business development: 

1st half year / 2nd half year




Chart 6 

Start in the fiscal year 2013. 

Continued market weakness in Germany and Europe 

In the early months of 2013, also Loewe sales significantly 

lower than the high figures of the previous year 

Restructuring measures effective as of 

second half of 2013 only!




Chart 7 

Summary 2012. 

New products. 

Three new TV-lines 

• Loewe Connect ID 

• Loewe Individual 

• Loewe Reference ID




Chart 8 

Summary 2012. 

New products. 

New product category Audiodesign 

• Loewe SoundBox 

• Loewe AirSpeaker 

• Loewe SoundVision




Chart 9 

New management team. 

Since the beginning of 2013, 

Loewe Executive Board team completed: 

Rolf Rickmeyer, CFO/CRO Matthias Harsch, CEO Dr. Detlef Teichner, CTO 

Michael Blatz appointed new Chairman of the 

Loewe Supervisory Board

Rolf Rickmeyer, CFO/CRO. 




Folie 10




Chart 11 

Financial statements 2012. 

Key performance indicators 

of the Loewe Group 2012. 

EUR mn 2012 2011 change in % 

Sales 250,0 274,3 -9 

EBIT -29,0 -10,5 

Incl.restructuring expenses -11,9 -2,9 

EBIT, adjusted -17,1 -7,6 

Net income -44,5 -10,7 

Investments 24,9 17,0 +46 

Employees (annual average) 1.004 1.022 -2 

Active workforce (Dec 31) 833 842 -1




Chart 12 


Reasons for the crisis. 

From outside: 

Declining market and continued price pressure 

Market shift to technical super stores to the disadvantage 

of the specialist retail trade 

Shorter product life cycles 

Dependance of key suppliers 

From inside: 

Lacking consequence in realizing the restructuring 

Too late adaptation of costs to the lower business volume 

Complex product range with too high price premium 

Too high inventories in the 2nd half year




Chart 13 


Development of sales revenues by country. 


Germany 156,4 170,4 -8 

Other European countries 86,4 98,6 -12 

Non-European countries 7,2 5,3 +36 

Total sales revenues 250,0 274,3 -9




Chart 14 


Business development 1st / 2nd half year. 

Sales growth 1st half of 2012: +6% 

Reasons: - Market introduction of new products 

- Sat-Analogue-switch-off 

Sales decline 2nd half of 2012: -20% 

Reasons: - Market weakness 

- Intensified competition 

Change vs. 2011




Chart 15 


Sales structure by product segment. 


TV-sets 202,3 220,7 -8 

Audio 21,0 21,7 -3 

DVD/BluRay 3,4 6,3 -46 

Others 23,3 25,6 -9 

Total sales revenues 250,0 274,3 -9




Chart 16 


Development of costs. 

EUR mn 2012 2011 change 

- Cost of sales 197.5 211.5 -14.1 

in % of sales 79.0 77.1 

- Selling expenses 63.7 65.0 -1.3 

in % of sales 25.4 23.7 

Focus: Expansion of the brand positioning 

- Gross margin 52.6 62.8 -10.2 

in % of sales 21.0 22.9 

Reasons: Under-utilization of factory and margin losses




Chart 17 


Development of costs. 

EUR mn 2012 2011 change 

- Admin. expenses -9.2 -7.8 -1.4 

in % of sales 3.7 2.8 

Reason: Increased restructuring expenses 2012 

(EUR 0.7 mn) 

- Other operat. expenses -8.7 -0,5 -8.2 


Focus: Provision for restructuring expenses 2013 

(EUR 7.6 mn) 

- Interest expenses -3.7 -2.3 -1.4 


Reason: Expenses for new syndicate credit agreement




Chart 18 


Consolidated income statement. 

2012 2011 

Diff. 

EUR mn % EUR mn % EUR mn 

Sales 250,0 100,0 274,3 100,0 -24,3 

Cost of sales -197,4 -79,0 -211,5 -77,1 14,1 

Gross margin 52,6 21,0 62,8 22,9 -10,2 

Selling expenses -63,7 -25,4 -65,0 -23,7 1,3 

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

Other operating expenses -8,7 -3,5 -0,5 -0,2 -8,2 

(EBIT) -29,0 -11,6 -10,5 -3,8 -18,5 

Interest and similar expenses -3,7 -1,5 -2,3 -0,9 -1,4 

Profit/loss from ordinary activities (EBT) -32,7 -13,1 -12,8 -4,7 -19,9 

Income tax expense -12,0 -4,8 1,9 0,7 -13,9 

Profit/loss after tax -44,7 -17,9 -10,9 -4,0 -33,8 

Minority interests 0,2 0,1 0,2 0,1 0,0 

Net income/loss -44,5 -17,8 -10,7 -3,9 -33,8 

Profit/loss carried forward -8,8 2,0 -10,8 

Accumulated profit/loss -53,3 -8,7 -44,6




Chart 19 


Investments and staff. 

Investments increase by EUR 7.9 mn to EUR 24.9 mn 

Focus: - Capitalized development costs (EUR 13.9 mn) 

- Tools for new products (EUR 5.3 mn) 

- Shop-in-shop-systems (EUR 1.6 mn) 

Staff: - Annual average 1,004 (-18) 

- Active workforce 883 ( -9)




Chart 20 


Total assets and equity. 

Total assets reduced by EUR 42.3 mn to EUR 161.5 mn 

Equity ratio decreased from 35.6% to 15.3% 

Equity at EUR 24.8 mn by EUR 47.7 mn below 

previous year’s figure




Chart 21 


Balance sheet items. 

Non-current assets EUR 43.8 mn (2011: EUR 54.2 mn) 

Reasons: Depreciation of deferred taxes 

amounting to EUR 11.5 mn 

Current assets EUR 117.8 mn (2011: EUR 149.6 mn) 

Inventory assets EUR 48.8 mn (2011: EUR 43.4 mn) 

Reason: Inventory increase of finished goods 

Trade accounts receivable EUR 55.3 mn (2011: EUR 70.7 mn) 

(after factoring) 

Liquid funds EUR 8.2 mn (2011: EUR 27.0 mn) 

Non-current financial liabilities EUR 46.1 mn (2011: EUR 51.7 mn) 

Current financial liabilities EUR 90.6 mn (2011: EUR 79.6 mn) 

Reason: Use of a short-term bank loan




Chart 22 


Consolidated balance sheet / assets. 

ASSETS 

Non-current assets 

2012 2011 Diff. 

EUR mn EUR mn EUR mn 

Intangible assets 10,5 8,7 1,8 

Property, plant and equipment 30,2 31,3 -1,1 

Deferred taxes/Miscellaneous 3,1 14,2 -11,1 

Current assets 

Inventories 48,8 43,4 5,4 

Trade accounts receivable 61,9 70,7 -8,8 

Factoring -6,6 0,0 -6,6 

Misc. current financial assets 5,4 8,5 -3,1 

Cash and cash equivalents 8,2 27,0 -18,8 

Total assets 161,5 203,8 -42,3




Chart 23 


Consolidated balance sheet / liabilities. 

LIABILITIES & SHAREHOLDERS' EQUITY 

2012 2011 Diff. 

EUR mn EUR mn EUR mn 

Shareholders' equity 

Subscribed capital 13,0 13,0 0,0 

Capital reserve 64,8 67,7 -2,9 

Accumulated profit/loss -53,3 -8,7 -44,6 

Minority interests 0,3 0,5 -0,2 

Group equity 24,8 72,5 -47,7 

Non-current liabilities 

Provisions for pensions 36,1 36,3 -0,2 

Other non-current provisions 10,0 15,4 -5,4 

Financial liabilities 0,0 0,0 0,0 

Current liabilities 

Provisions (Taxes & Other current prov.) 48,1 44,1 4,0 

Current financial liabilities 12,5 0,0 12,5 

Trade accounts payable 20,2 24,8 -4,6 

Misc. current financial liabilities 9,8 10,7 -0,9 

Total liabilities & shareholders' equity 161,5 203,8 -42,3




Chart 24 


Consolidated cash flow statement. 

Net cash from operating activities: EUR -13. 5 mn 

(2011: EUR 35.8 mn) 

Reasons: high negative EBIT, increase of 

inventory assets, reduction of trade acc. payable 

Net cash from investing activities: EUR -24.4 mn 

(2011: EUR -16.9 mn) 

Net cash from financing activities: EUR 12.5 mn 

(2011: EUR -0.1 mn) 

Reason: short-term borrowing 

Change in liquidity: EUR -25.4 mn 

(2011: EUR 18.8 mn)




Chart 25 

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70 

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Loewe shareprice development. 

EPS 2012: EUR -3,42. 

Loewe vs. SDAX Jan 01, 2012 until March 18, 2013. 

High: EUR 6,00 on 14/05/2012 

Low: EUR 2,38 on 05/01/2012 

Loewe AG SDAX 

EUR 3,08 on 18/03/2013




Chart 26 

46.00% 

Loewe shareholder structure. 

Sharp (28.83%) 

11.17% 

28.83% 

14.00% 

Management Dr. Hecker & family & Corporate (14.00%) 

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. 

Dr. Hecker and family 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 

- Matelan Research 

Since July 1999, Loewe has been a listed 

company.




Chart 27 

Restructuring. 

Modules at a glance. 

PRICE- / PRODUCT- 

POSITIONING 

SALES MEASURES 

STRUCTURE / 

VALUE CREATION 

1 2 3 4 

Streamlining of the 

TV portfolio to four 

model lines with 

focus to the core 

segments of 40 up 

to 55 inch 

Focused 

expansion of 

Audio Stand-Alone 

products and 

Audio systems 

Further reduction 

of the price 

premium 

Regaining of 

market shares in 

the classic 

specialist retail 

trade 

Expansion of 

business with 

technical super 

stores with 

qualified specialist 

retail character 

Increase of 

international 

business via 

distribution 

network of 

international 

cooperations 

Optimized 

Customer Services 

Decline of 

Loewe‘s value 

creation and 

expansion of 

further 

cooperations 

Adaptation of 

direct employees 

to 2013 capacity 

needs 

Lean organisation 

of the indirect 

divisions 

SUSTAINED 

COST REDUCTION 

Reduction of staff 

costs (collective 

wage agreement 

during financial 

restructuring) 

Reduction of 

material costs




Chart 28 


EBIT-effect 2013 from cost reduction measures 

implemented. 

EUR mn 2013 

Total staff costs 

Total material costs 

14.2 

3.1 

Total other costs 5.7 

TOTAL 23.0 

2013: Group restructuring expenses -6.6




Chart 29 


Guidelines for 2013. 

Safeguard sales targets 

Reduce structure costs 

Strict cost management 

Optimize working capital 

Resolute realization of measures 

Regain confidence of stakeholders




Chart 30 


Current capital market options. 

Capital measures not compulsory according to legal requirements 

Examination of different options in view of the planned growth 

and to improve the equity base 

Measures for a potential capital increase are possible together 

with the existing major shareholders or also with a new investor

Dr. Detlef Teichner, CTO. 




Folie 31




Chart 32 

Investments in new products. 

New electronic platform. 

Efficient, modular software concept 

Improves flexibility and facilitates further developments 

Introduced to the market for the first time with the new product 

lines Loewe Individual and Loewe Reference ID 

Intuitive operation as USP 

Further focus: operating system with «Second Screen» 

introduced to the market since 2012 

Adaptation for smart phones planned in 2013




Chart 33 


Joy of use with the new GUI. 

customizable Home Screen 

semitransparent menus 

musicplayer with Coverflow 

photoviewer with collages 

HD animations 

system user interface design




Chart 34 


Reference ID stands for … 

…best-in-class picture quality 

…best-in-class sound and sound system 

…revolutionary operating system Assist Media 

…unrivalled DR+ technology 

…extraordinary Reference ID design 

…unlimited options of individualisation 

…future-oriented platform




Chart 35 


Individual Slime Frame stands for … 

…best-in-class picture quality 

…best-in-class sound 

…revolutionary operating system Assist Media 

…unrivalled DR+ technology 

…Loewe individual design 

…future-oriented platform




Chart 36 


Audiodesign. 

new product category 

new target groups 

new retailers 

new distribution channels 

facilitates the entry into the Loewe premium world 

strategic expansion of Audiodesign products in 2013




Chart 37 


First of its kind in the world: 3D Orchestra. 

puristic form, hidden technology 

integrated Home Cinema speaker system 

enlarged Sweet Spot for real 3D sound 

variable and upgradeable loudspeaker configuration 

two colours, numerous inlays, versatile display options




Chart 38 

Intelligent value creation chain. 

Kronach location: development of a manufactory 

for highly individual home entertainment systems 

Expansion of the production cooperation with 

international partners 

Stronger use of Loewe China Operations 

(Purchasing, production)

Matthias Harsch, CEO. 




Folie 39




Chart 40 

Strategic outlook. 

Megatrend Smart Home Entertainment. 

Two-thirds of all German households with Internet access 

are interested in «Intelligent Living» 

Intelligent building technology: automation of remote systems 

for light, air condition, TV, music, computer, heating 

«Services» in the centre of a differentiation strategy 

Smart Home as highly attractive field of positioning




Chart 41 


Central levers of differentiation for Loewe. 

Smart Connectivity 

Smart Remote Control / Ease of Use 

Smart Usage / TV-Apps 

Smart Integration (Media Home) 

Smart Storage (Home Media Cloud)




Chart 42 


The Loewe premium brand is perfectly positioned / 

Core of the brand. 

Minimalistic design 

Highly individual integration of worlds of living 

Joy of Use 

Emotion 

Sustainability 

Made in Germany




Chart 43 


Distribution and international strategy. 

Qualified retail trade as strategic partner for 

marketing of the core TV-product range 

Younger brand appearance by Loewe Audio products 

via all distribution channels 

Revision of the Loewe distribution concept 

Establishment of an innovative service concept 

in cooperation with the specialist retail trade 

Examination of the market entry into China




Chart 44 


Targets 2013. 

Systems and market leader in Smart Home Entertainment 

Slight revenue growth 

Break even operating result 

Overall result for fiscal year 2013 continues to be 

burdened by restructuring expenses




Chart 45 

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




Chart 46 

Q&A Session.

Loewe Investor Relations. 




Chart 47 

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 

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

Presentation Handout 2013 (PDF) - Loewe AG > Aktuell

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