CEWE COLOR is
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Factbook<br />
<strong>CEWE</strong> <strong>COLOR</strong><br />
April 2012
Agenda<br />
Page 2<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Agenda<br />
Page 3<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Th<strong>is</strong> <strong>is</strong> <strong>CEWE</strong> <strong>COLOR</strong><br />
(1) The European photo service company<br />
Page 4<br />
�<br />
�<br />
1. for retail stores<br />
2. for Internet companies
Th<strong>is</strong> <strong>is</strong> <strong>CEWE</strong> <strong>COLOR</strong><br />
(2) The Online Print Provider<br />
► Online printing for commercial use: A new growth area for <strong>CEWE</strong> <strong>COLOR</strong><br />
Page 5<br />
Digital printing<br />
(lot size up to 500)<br />
Offset printing<br />
(lot size >500)<br />
Consumers Business clients
Overview <strong>CEWE</strong> products<br />
Page 6<br />
Prints <strong>CEWE</strong> PHOTOBOOK Photo Calendars<br />
Internet<br />
Photo Greeting Cards Wall Decorations Other Photo Gift Articles<br />
� Added-value products to generate growth
Photo servicer for retailers<br />
� Photo products are a service for retailers<br />
Page 7<br />
Retail<br />
Retail stores<br />
Internet webshop<br />
�<br />
<strong>CEWE</strong> <strong>COLOR</strong> Consumers<br />
Production in an<br />
industrial plant<br />
Collecting in a store<br />
or Ordering<br />
Despatch<br />
or<br />
�<br />
by mail to customer‘s home
Page 8<br />
40,000 trade partners in Europe<br />
Pharmaceutical markets Photo retailers Internet retailers<br />
Home electronics stores<br />
� We reach consumers through strong retail brands<br />
� Retail partners invest in d<strong>is</strong>tribution and marketing<br />
System partners Food retailers & depart. stores<br />
� Retail sales channels with online retailers and system partners
Corporate structure of the <strong>CEWE</strong> <strong>COLOR</strong> Group<br />
Shareholders<br />
<strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
4 Directors, no other employees<br />
• Partner of the OHG<br />
• PLC Superv<strong>is</strong>ory Board<br />
• PLC Board of Management<br />
Joint heirs<br />
of Senator h.c. Heinz Neumüller<br />
(represented in the Superv<strong>is</strong>ory Board of<br />
the holding company)<br />
Chairman and remaining<br />
Superv<strong>is</strong>ory Board<br />
<strong>CEWE</strong> <strong>COLOR</strong> AG & Co. OHG<br />
Approx. 3,100 employees<br />
Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation<br />
9 Directors/Managers, no other employees<br />
• Managing partner of the OHG<br />
• Board of Trustees<br />
• Foundation executives/management<br />
• Responsible for managing all the <strong>CEWE</strong> COLO GROUP op. business<br />
• Headed by the Directors and Managers of the Foundation<br />
Elements of<br />
family management<br />
► Family management from two sources: shareholders and foundation<br />
Page 9
Advantages of family-run, stock-exchange l<strong>is</strong>ted companies<br />
Family enterpr<strong>is</strong>e<br />
Stockexchange<br />
l<strong>is</strong>ted<br />
company<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
Advantages<br />
Less short-term quarterly mindset obliges<br />
Focus on a few core areas ...<br />
... in which the management <strong>is</strong> an expert<br />
No principal-agent problems<br />
mainly organic growth, only minor<br />
acqu<strong>is</strong>itions<br />
Sound financing<br />
Transparent information policy<br />
Focus on earnings<br />
Situation at <strong>CEWE</strong> <strong>COLOR</strong><br />
Large-scale investment in digital technology in<br />
order to secure the future of the company<br />
Photofin<strong>is</strong>hing as the core area of business<br />
New area with positive synergies<br />
Anchor persons in the management have shaped<br />
the development of the industry for many years<br />
Board of Management and Superv<strong>is</strong>ory Board<br />
with large share ownership<br />
Only small "digestible" acqu<strong>is</strong>itions<br />
42 % equity capital ratio<br />
Comprehensive available credit lines<br />
Comprehensive IR activities<br />
Profit in each year of transformation<br />
► <strong>CEWE</strong> <strong>COLOR</strong> combines the advantages of stock-exchange l<strong>is</strong>ted<br />
companies and family enterpr<strong>is</strong>es<br />
Page 10<br />
�<br />
�<br />
�<br />
�<br />
�<br />
�<br />
�<br />
�
2012 corporate structure<br />
� 13 production plants<br />
� 24 European countries<br />
� 3,100 employees<br />
� 1,300 courier service drivers<br />
� 40,000 retail partners (POS)<br />
� 191 retail stores in<br />
Central Eastern Europe and Norway<br />
� EUR 469 million revenue (2011)<br />
� <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> the leading photo service company in Europe<br />
Page 11<br />
Production sites<br />
IRL<br />
ES<br />
UK<br />
F<br />
NL<br />
B<br />
N<br />
DK<br />
CH<br />
D<br />
I<br />
S<br />
CZ<br />
A<br />
SLO<br />
HR<br />
PL<br />
SK<br />
H<br />
LT<br />
RO
Industrial production plants<br />
<strong>CEWE</strong> operates 12 industrial labs in Europe<br />
Four examples:<br />
Oldenburg (headquarters) Freiburg München<br />
Kozle (Poland)<br />
► Identical industrial production processes<br />
Page 12
Industrial production plants<br />
Substantial know-how in automation and process control<br />
► <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> the technological leader in industrial photofin<strong>is</strong>hing<br />
Page 13
Industrial production plants<br />
Substantial know-how in automation and process control<br />
► <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> automating its printing section<br />
Page 14
Central<strong>is</strong>ed IT infrastructure<br />
Oldenburg<br />
Dresden<br />
► Operations all use the same EDP system<br />
Graudenz<br />
Kozle<br />
► All the retail partners get the same service throughout Europe<br />
Page 15<br />
Warwick<br />
Rennes<br />
M´gladbach<br />
Montpellier<br />
Freiburg<br />
München<br />
Prag<br />
Budapest
Agenda<br />
Page 16<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Digital photos - ordered in a store<br />
Photos from films<br />
Put a film cartridge into a<br />
photo envelope<br />
► Analogue and digital photos: the classical image products<br />
Page 17<br />
Home-burned CD<br />
Digital photos<br />
or<br />
Memory card
Digital photos - ordered in a store<br />
Ordering digital photos with the help of a DigiFoto Maker<br />
(order terminal)<br />
- Have a memory card read<br />
- Order on the screen<br />
- Burn a CD or<br />
send an order online<br />
► Consumers do not need a PC<br />
Page 18
<strong>CEWE</strong> COMBI PHOTO KIOSK<br />
Orders in the laboratory<br />
- Digital photos<br />
- Photo gift articles<br />
- <strong>CEWE</strong> PHOTO BOOKS<br />
Immediate Printing<br />
- Immediate photos<br />
- Photo greeting cards and calendars<br />
- Passport photographs<br />
► Consumers order photos direct at a kiosk<br />
Page 19
Digital photos - ordered in a store<br />
Mit DigiFoto-Maker, selbst gebrannter CD und Speicherkarte<br />
Digital photos*<br />
in million units<br />
► The digital photo service <strong>is</strong> an important frequency generator for retail<br />
stores<br />
Page 20<br />
-12.5%
Digital photos - ordered online<br />
<strong>CEWE</strong> <strong>COLOR</strong> integrates a digital photo<br />
service into retailers' websites<br />
► Trade partners have their own presentation with CeWe technology<br />
Page 21<br />
Retailer's website<br />
Store<br />
Consumer
Digital photos - ordered online<br />
Digital photos<br />
in million units<br />
642<br />
► Internet growth: +17.1%<br />
► Internet attracting young consumers<br />
Page 22<br />
874<br />
1,100<br />
1,293<br />
1,515<br />
+17.1%<br />
Mailorder<br />
46.1%<br />
Pick-up POS<br />
53.9%<br />
<strong>CEWE</strong> Internet<br />
accounts for<br />
61% of all digital<br />
photos
<strong>CEWE</strong> <strong>COLOR</strong> digital photos total<br />
Internet and orders placed in stores<br />
in million units<br />
38.8<br />
170<br />
509<br />
830<br />
1,114<br />
1,515<br />
1,786<br />
2,036<br />
2,129<br />
2,246<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
► Digital growth successfully generated<br />
Page 23<br />
+5,5%
Internet sales innovation<br />
Example:<br />
Drogerie Müller<br />
Page 24<br />
► Including the Internet in marketing activities
New product innovation<br />
► Huge trend for personal<strong>is</strong>ing products<br />
Page 25<br />
1. Print Products 2. Wall Decoration<br />
Alu-Dibond<br />
Acrylic glass<br />
3. Gift Articles
Photo gift articles<br />
Mousepad<br />
Teddy<br />
Products with personal photos, texts and designs<br />
Mug<br />
Snowflake ball Puzzle<br />
Backpack<br />
► <strong>CEWE</strong> <strong>COLOR</strong> offers a wide range of personal<strong>is</strong>ed photo products<br />
Page 26
Wall decoration<br />
► Photo canvases are attractive for decorating walls<br />
Page 27<br />
Canvas<br />
Acrylic glass<br />
Alu-Dibond
Wall decoration<br />
XXL poster with poster collages up to 160cm x 90cm<br />
► Individual layout and design with <strong>CEWE</strong> software<br />
Page 28
Photo calendars<br />
Desk-top calendar<br />
Wall calendar<br />
► Popular Chr<strong>is</strong>tmas gifts<br />
Page 29<br />
Many formats, many designs<br />
Wall appointment<br />
calendar<br />
Desk-top appointment calendar<br />
Kitchen and<br />
birthday calendar Span-a-year calendar
Photo greeting cards<br />
Page 30<br />
Home-made wedding cards
Photo greeting cards<br />
Seite 31<br />
Page 31<br />
Birth<br />
announcements
Photo greeting cards<br />
Page 32<br />
Communion / confirmation
Photo greeting cards<br />
Page 33<br />
Chr<strong>is</strong>tmas cards with personal texts and photos
D<strong>is</strong>ney designs<br />
In cooperation with D<strong>is</strong>ney designs renowned characters are offered for many<br />
products:<br />
Page 34
D<strong>is</strong>ney designs<br />
In cooperation with D<strong>is</strong>ney designs renowned characters are offered for many<br />
products:<br />
Page 35
The top seller:<br />
<strong>CEWE</strong> PHOTOBOOK<br />
Page 36
<strong>CEWE</strong> PHOTOBOOK<br />
► Widest range:<br />
photo booklet, square, large, XL and XXL formats<br />
Page 37<br />
Large<br />
Square<br />
Photo booklet<br />
XXL-Format (42 x 30 cm)
<strong>CEWE</strong> PHOTOBOOKS in photo paper<br />
Page 38<br />
<strong>CEWE</strong> PHOTOBOOK XL<br />
<strong>CEWE</strong> PHOTOBOOK large<br />
(in a panorama format)<br />
<strong>CEWE</strong> PHOTOBOOK SQUARE
<strong>CEWE</strong> SPECIAL-OCCASION PHOTOBOOKS<br />
Your digital photos combined with professional contents<br />
Themes:<br />
Page 39<br />
Travel photobook<br />
Photo yearbook<br />
Photobook<br />
chronicle
<strong>CEWE</strong> SPECIAL-OCCASION PHOTOBOOKS<br />
Your digital photos combined with professional contents<br />
Themes:<br />
Baby photobook<br />
Wedding photobook<br />
► <strong>CEWE</strong> supplies consumers with additional contents<br />
Page 40
Commercial use for <strong>CEWE</strong> PHOTOBOOKS<br />
Building contractor for<br />
half-timber houses<br />
Bathroom interior decorator<br />
Jewellery designer<br />
Veterinary surgeon<br />
► Commercial customers use a <strong>CEWE</strong> PHOTOBOOK as an image brochure<br />
Page 41
<strong>CEWE</strong> PHOTOBOOK Community<br />
<strong>CEWE</strong> PHOTOBOOK forum<br />
Page 42<br />
� Consumers' feedback and ideas for optim<strong>is</strong>ing the software<br />
program and the product portfolio<br />
� <strong>CEWE</strong> PHOTOBOOK competitions to bind customers<br />
� Customer sentiments, newsletters and lots more...
Awards<br />
► Test winner and awards for <strong>CEWE</strong> PHOTOBOOK<br />
► Technology leadership confirmed<br />
Page 43
www.cewe-photoworld.co.uk<br />
Page 44<br />
► Highly attractive website for advert<strong>is</strong>ing and for information
Our aim<br />
� To continue to offer the best software<br />
on the market<br />
� The best product range, especially for<br />
<strong>CEWE</strong> PHOTOBOOKS<br />
� Ordering processes to be simplified<br />
even more<br />
� Please others with photo gift articles<br />
Page 45
<strong>CEWE</strong> PHOTOBOOK growth<br />
Number of <strong>CEWE</strong> PHOTOBOOKS<br />
in millions<br />
1,515<br />
2,646<br />
3,644<br />
4,337<br />
5,146<br />
2007 2008 2009 2010 2011<br />
► The <strong>CEWE</strong> PHOTOBOOK <strong>is</strong> the most popular photo book in Europe<br />
Page 46<br />
+18.6%
<strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong>:<br />
� Cost leader<br />
� Technological leader<br />
� Innovative leader<br />
► The market leader in Europe<br />
Page 47
Agenda<br />
Page 48<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Two areas of competition<br />
�<br />
�<br />
Page 49<br />
Competition among industrial photofin<strong>is</strong>hers<br />
Competition among print systems<br />
Industrial<br />
photofin<strong>is</strong>hing<br />
and others<br />
Kiosks and minilabs Home printing
�<br />
Market leadership<br />
<strong>CEWE</strong> <strong>COLOR</strong> market shares<br />
in industrial photofin<strong>is</strong>hing<br />
Europe: more than 40%<br />
► <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> No. 1 on almost all the markets<br />
Page 50
�<br />
Competition among print systems for digital photos<br />
Purchase price or costs per digital photo for consumers<br />
Production Printing Printing<br />
in an ind. lab in a store at home<br />
Ind. fin<strong>is</strong>hing Kiosk or Home printer<br />
minilab<br />
Starting price<br />
per digital photo 7-15 cents 25-49 cents 29-60 cents<br />
(no sales campaign prices)<br />
► Industrial photofin<strong>is</strong>hing has considerable price advantages since unit<br />
costs are lower<br />
Page 51
�<br />
Competition among print systems for digital photos<br />
Industrial photofin<strong>is</strong>hing<br />
... will continue to considerably enhance its cost advantages with increasing<br />
volumes<br />
... will be unbeatable in terms of cost through decentral<strong>is</strong>ed print systems<br />
… supplies numerous products that cannot be produced decentrally (and does so<br />
cost-effectively)<br />
► <strong>CEWE</strong> <strong>COLOR</strong> has a strong position on the market<br />
Page 52
Agenda<br />
Page 53<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Camera market in Germany<br />
4.025<br />
3.945<br />
80<br />
Analogkameras<br />
Digitalkameras<br />
3.935<br />
150<br />
4.030<br />
300<br />
4.010<br />
580<br />
3.500<br />
1.200<br />
2.800<br />
2.400<br />
1.900<br />
4.900<br />
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />
► Digital cameras are replacing analogue cameras and films<br />
Source: German Association of Industrial Photography<br />
Page 54<br />
4.085<br />
4.330<br />
4.590<br />
4.700<br />
5.200<br />
6.800<br />
8.300 8.430 8.350<br />
1.300<br />
7.000<br />
1.000<br />
7.430<br />
500<br />
7.850<br />
8.850<br />
300<br />
8.550<br />
9.520<br />
200<br />
9.320<br />
8.560<br />
50<br />
8.510
Digital camera diffusion process<br />
Typical S-shaped curve for the<br />
penetration of digital cameras in homes<br />
in %<br />
Source: Allensbacher Markt- und Werbeträgeranalysen and GfK<br />
Page 55<br />
100<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
1.6<br />
3.5<br />
5.4<br />
12.1<br />
22.2<br />
Late buyers, abstainers<br />
Widest majority<br />
50.7<br />
37.5<br />
Early followers<br />
56.6<br />
61.4<br />
Trendsetters<br />
Earliest trendsetters, innovators<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008
Film market in Germany<br />
Film sales in Germany<br />
in millions<br />
Decline in the<br />
classical film<br />
development<br />
market<br />
Source:<br />
German Association of Industrial<br />
Photography<br />
► Films have declined by over 90% – and <strong>CEWE</strong> <strong>COLOR</strong> has mastered the<br />
transition<br />
Page 56<br />
191 187<br />
170<br />
154<br />
127<br />
90<br />
64<br />
41<br />
30<br />
23 18<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
-91%
Market players<br />
Agfa Photo Insolvent<br />
V-Dia Insolvent<br />
Südcolor Insolvent<br />
Kodak Insolvent<br />
Konica Minolta D<strong>is</strong>continued photos<br />
Fuji Losses<br />
►Technological transfer sees renowned competitors stumbling/falling<br />
Page 57
Management tasks in the change in technology<br />
Investments<br />
in new products:<br />
� Since 1997 development and<br />
marketing of new products<br />
� Until now approx. over EUR 300 million<br />
invested in digital technologies<br />
Restructuring: � Essential capacity adjustments have reduced<br />
earnings annually by EUR 10 million<br />
Page 58
Reduction in capacity<br />
Number of operations<br />
23<br />
Page 59<br />
22<br />
20<br />
19<br />
15<br />
13<br />
12 12<br />
2004 2005 2006 2007 2008 2009 2010 2011<br />
Number of employees<br />
3,829 3,730<br />
3,131 3,124 2,921 2,742 2,681 2,823<br />
2004 2005 2006 2007 2008 2009 2010 2011<br />
► Reduction in capacities in line with development of volume<br />
► Remaining operations more efficient
Restructuring expenditure<br />
Restructuring expenditure caused by the analogue-digital-transformation<br />
in million Euros<br />
0.0 0.0<br />
2.6<br />
12.9<br />
6.7<br />
12.2<br />
11.4<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
� From 2010 on nor more restructuring expenditure will occur due to<br />
analogue/digital transformation<br />
� Ceter<strong>is</strong> paribus profits will increase by approx. 10 million euros<br />
from 2010 on<br />
Page 60<br />
9.5<br />
2.2<br />
0.0
Requirements for restructuring<br />
resulting from the analogue/digital transformation<br />
Change from<br />
analogue to<br />
Digital photo-<br />
graphy<br />
Page 61<br />
Reduction of<br />
total production capacity<br />
Reduction of<br />
production of network density<br />
� 2 triggers of the final<strong>is</strong>ed analogue / digital transformation:<br />
Network density and capacity
Core measures in the analogue/digital transformation process<br />
A. Capacities adjusted<br />
B. Innovations launched early<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Investments in new technologies<br />
Sales channels adapted (Internet)<br />
New products developed<br />
Brand establ<strong>is</strong>hed<br />
Bas<strong>is</strong> for the future set<br />
C. Soundly financed<br />
► Transformation means innovation<br />
Page 62
Investments in digital capacities<br />
Investments<br />
in EUR millions<br />
29.5<br />
21.3<br />
Investments > EUR 310 million<br />
Digital photos<br />
in millions<br />
2.2 billion digital<br />
photos in 2011<br />
► <strong>CEWE</strong> has cons<strong>is</strong>tently invested more than EUR 310 million in building up<br />
digital business early<br />
► Capacities are largely sufficient. From 2009 on it may be possible to reduce<br />
investments<br />
Page 63<br />
40.4<br />
37.2 36.2<br />
32.5<br />
36.0 34.5 34.1 32.5<br />
35.5<br />
35.5<br />
33.3<br />
33.3<br />
27.4<br />
26.4<br />
27.4 26.4<br />
30.3<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
30.3<br />
38.8<br />
170<br />
509<br />
830<br />
1,114<br />
1,515<br />
1,786<br />
2,036<br />
2,129<br />
2,246<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Early start to innovation<br />
1994 1997 1998<br />
Digital photos<br />
as a PhotoIndex<br />
Page 64<br />
First digital station<br />
worldwide<br />
► As a first mover, <strong>CEWE</strong> <strong>COLOR</strong> launched digital<br />
technologies as early as in 1994 (far ahead of the market)<br />
Online<br />
photo offer<br />
1
Important milestones in the transformation process (1/2)<br />
<strong>CEWE</strong> <strong>COLOR</strong><br />
Products<br />
Methods<br />
of<br />
ordering<br />
Photoindex<br />
Digital print<br />
as an overview for<br />
analogue photos<br />
Market environment<br />
ISDN<br />
Digital print systems<br />
Digital Photo<br />
Digital image files<br />
can be exposed onto<br />
photo paper<br />
► <strong>CEWE</strong> was technically ahead of the trendsetters<br />
CeWe PhotoNet<br />
Online photo library<br />
Picture CD<br />
With image processing and<br />
presentation software<br />
128 mbit memoray card<br />
by ScanD<strong>is</strong>k<br />
1<br />
Photo World:<br />
Ordering online<br />
Photoscreen<br />
Digital Station: Terminal for<br />
taking in digital photo orders<br />
1990<br />
…<br />
1995 1996 1997 1998 1999<br />
Conn<br />
ections<br />
Camera<br />
produc<br />
tion tech<br />
nology<br />
Page 65<br />
Digital camera<br />
with 2 mpx
Important milestones in the transformation process (2/2)<br />
<strong>CEWE</strong> <strong>COLOR</strong><br />
Products<br />
Methods<br />
of<br />
ordering<br />
Archive<br />
CD<br />
Expanding<br />
Photo World:<br />
mailorder<br />
Photo-Terminals Reading from<br />
data media at a POS<br />
2000 2001 2002 2003 2004 2005 2006 2007<br />
Market environment<br />
Conn<br />
ections<br />
Camera<br />
product<br />
tion<br />
tech<br />
nologie<br />
Flatrate<br />
DSL spread<br />
Start for the<br />
trendsetters<br />
DigiFoto Maker:<br />
Terminal for taking in digital photo<br />
orders for the mass market<br />
Camera mobile<br />
phone with 1 mpx<br />
HomePhotoService<br />
Offline software for ordering photos<br />
Mini SD Card for mobile<br />
phones<br />
Start for the general<br />
public<br />
<strong>CEWE</strong> PHOTOBOOK<br />
Software for rectifying “redeye<br />
effect“<br />
Photo orders per mobile phone<br />
Camera mobile phone with<br />
1.3 mpx<br />
► <strong>CEWE</strong> was already there when digital cameras reached the general public<br />
Page 66<br />
1<br />
Ordering photos with<br />
Windows V<strong>is</strong>ta
Investments in digital printers<br />
Page 67<br />
► Technology for producing digital photos on photo paper establ<strong>is</strong>hed<br />
1
Investments in digital printers<br />
Page 68<br />
► More than 50 digital printers (electronic method)<br />
HP Indigo, Kodak Nexpress and Xerox iGen in operation<br />
1
Investments in industrial book binding 1<br />
Page 69
New sales channels<br />
Ordering photo products<br />
at order stations<br />
Page 70<br />
► Over 25,000 POS installations<br />
Instant printing<br />
2
Internet sales innovation<br />
Example:<br />
Drogerie Müller<br />
► Including the Internet in marketing activities<br />
Page 71<br />
2
New product innovation 3<br />
► Huge trend for personal<strong>is</strong>ing products<br />
Page 72<br />
1. Print Products 2. Wall Decoration<br />
Alu-Dibond<br />
Acrylic glass<br />
3. Gift Articles
Photo gift articles<br />
Mousepad<br />
Teddy<br />
Products with personal photos, texts and designs<br />
Mug<br />
Snowflake ball Puzzle<br />
Backpack<br />
► <strong>CEWE</strong> <strong>COLOR</strong> offers a wide range of personal<strong>is</strong>ed photo products<br />
Page 73<br />
3
Wall decoration<br />
► Photo canvases are attractive for decorating walls<br />
Page 74<br />
Canvas<br />
3<br />
Acrylic glass<br />
Alu-Dibond
Wall decoration<br />
XXL poster with poster collages up to 160cm x 90cm<br />
► Individual layout and design with <strong>CEWE</strong> software<br />
Page 75<br />
3
Photo calendars<br />
Desk-top calendar<br />
Wall calendar<br />
► Popular Chr<strong>is</strong>tmas gifts<br />
Page 76<br />
Many formats, many designs<br />
Wall appointment<br />
calendar<br />
Desk-top appointment calendar<br />
Kitchen and<br />
birthday calendar Span-a-year calendar<br />
3
Photo greeting cards<br />
Page 77<br />
Home-made wedding cards<br />
3
Photo greeting cards<br />
Page 78<br />
Chr<strong>is</strong>tmas cards with personal texts and photos<br />
3
D<strong>is</strong>ney designs<br />
In cooperation with D<strong>is</strong>ney designs renowned characters are offered for many<br />
products:<br />
Page 79<br />
3
The top seller:<br />
<strong>CEWE</strong> PHOTOBOOK<br />
Page 80<br />
3
<strong>CEWE</strong> PHOTOBOOK<br />
► Widest range:<br />
photo booklet, square, large, XL and XXL formats<br />
Page 81<br />
Large<br />
Square<br />
Photo booklet<br />
XXL-Format (42 x 30 cm)<br />
3
<strong>CEWE</strong> PHOTOBOOKS in photo paper<br />
Page 82<br />
<strong>CEWE</strong> PHOTOBOOK XL<br />
<strong>CEWE</strong> PHOTOBOOK large<br />
(in a panorama format)<br />
<strong>CEWE</strong> PHOTOBOOK SQUARE<br />
3
<strong>CEWE</strong> SPECIAL-OCCASION PHOTOBOOKS<br />
Your digital photos combined with professional contents<br />
Themes:<br />
Page 83<br />
Travel photobook<br />
Photo yearbook<br />
Photobook<br />
chronicle<br />
3
<strong>CEWE</strong> SPECIAL-OCCASION PHOTOBOOKS<br />
Your digital photos combined with professional contents<br />
Themes:<br />
Baby photobook<br />
Wedding photobook<br />
► <strong>CEWE</strong> supplies consumers with additional contents<br />
Page 84<br />
3
Commercial use for <strong>CEWE</strong> PHOTOBOOKS<br />
Building contractor for<br />
half-timber houses<br />
Bathroom interior decorator<br />
Jewellery designer<br />
Veterinary surgeon<br />
► Commercial customers use a <strong>CEWE</strong> PHOTOBOOK as an image brochure<br />
Page 85<br />
3
Brand presentation in stores 4<br />
Page 86
Brand presentation in stores 4<br />
Page 87
Brand presentation in stores 4<br />
Page 88
Brand presentation in stores 4<br />
Page 89
Brand presentation in stores 4<br />
Page 90
Brand presentation in stores 4<br />
Page 91
Brand presentation in stores 4<br />
Page 92
Search engine marketing for the brand<br />
► <strong>CEWE</strong> PHOTOBOOK <strong>is</strong> the number 1 in the search for "photo books"<br />
Page 93<br />
4
Brand campaigns in daily newspapers and magazines 4<br />
Page 94
Brand communication on TV 4<br />
Page 95
Brand communication on TV 4<br />
Page 96
Brand communication on TV 4<br />
Page 97
photokina exhibition 2010 4<br />
Page 98
Brand communication at 12 airports in Germany 4<br />
� Bremen<br />
� Paderborn<br />
� Dortmund<br />
� Münster-Osnabrück<br />
� Düsseldorf / Weeze<br />
� Hahn<br />
� Köln/Bonn<br />
� Baden<br />
� Nürnberg<br />
� Dresden<br />
� Leipzig<br />
� Stuttgart<br />
Page 99
Brand communication at 12 airports in Germany 4<br />
Page 100
Brand communication at 12 airports in Germany 4<br />
Page 101
Brand communication on over 200 million boarding passes 4<br />
Page 102
Online printing for commercial use<br />
► Online printing for commercial use: A new growth area for <strong>CEWE</strong> <strong>COLOR</strong><br />
Page 103<br />
Digital printing<br />
(lot size up to 500)<br />
Offset printing<br />
(lot size >500)<br />
Consumers Business clients<br />
5
www.viaprinto.com<br />
Page 104<br />
5
References<br />
POINT CONSULTING<br />
CONSULTING • SCIENCE • TRAINING<br />
Page 105<br />
5
www.viaprinto.com – the online printing service<br />
▸ Starting from order size one<br />
▸ Easy to use<br />
▸ Fast delivery<br />
▸ High quality<br />
▸ Data security<br />
Page 106<br />
5
Viaprinto presentation at digi:media exhibition<br />
Page 107<br />
5
Awards for viaprinto<br />
Page 108<br />
5
Customer sat<strong>is</strong>faction<br />
Page 109<br />
software usability<br />
offered products<br />
paper variety<br />
quality<br />
delivery time<br />
0 20 40 60 80 100<br />
customer service excellent<br />
► Customers are sat<strong>is</strong>fied with viaprinto‘s service<br />
good<br />
5
Estimation on viaprinto‘s pricing<br />
Page 110<br />
very low priced<br />
low priced<br />
adequately<br />
expensive<br />
very expensive<br />
0 10 20 30 40 50<br />
5
Would you recommend viaprinto?<br />
Page 111<br />
definitely<br />
rather yes<br />
rather no<br />
in no case<br />
0 10 20 30 40 50 60 70<br />
5
Saxoprint:<br />
Products<br />
Flyer<br />
Brochures<br />
Booklets<br />
Banner<br />
Folder<br />
Cards<br />
etc.<br />
Page 112<br />
5
Page 113<br />
5
Page 114<br />
5
Page 115<br />
5
Page 116<br />
5
Core measures in the analogue/digital transformation process<br />
A. Capacities adjusted<br />
B. Innovations launched early<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Investments in new technologies<br />
Sales channels adapted (Internet)<br />
New products developed<br />
Brand establ<strong>is</strong>hed<br />
Bas<strong>is</strong> for the future set<br />
C. Soundly financed<br />
► The measures have taken effect<br />
►The end of analogue/digital transformation-related restructuring was<br />
reached in 2009<br />
Page 117
Test wins and awards gained<br />
Technological leadership confirmed<br />
Page 118
<strong>CEWE</strong> <strong>COLOR</strong> digital photos total<br />
Internet and orders placed in stores<br />
in millions<br />
39<br />
170<br />
509<br />
830<br />
1,114<br />
1,515<br />
1,786<br />
2,036<br />
2,129<br />
2,246<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
► New digital business in general has been successfully establ<strong>is</strong>hed<br />
Page 119
<strong>CEWE</strong> PHOTO BOOK growth<br />
Number of <strong>CEWE</strong> PHOTO BOOKS<br />
in millions<br />
► The <strong>CEWE</strong> PHOTO BOOK <strong>is</strong> the most popular photo book in Europe<br />
Page 120<br />
0.07<br />
0.5<br />
1.5<br />
2.6<br />
2005 2006 2007 2008 2009 2010 2011<br />
3.6<br />
4.3<br />
5.1
Market leadership in photofin<strong>is</strong>hing<br />
<strong>CEWE</strong> <strong>COLOR</strong> market shares<br />
in industrial photofin<strong>is</strong>hing<br />
95%<br />
90%<br />
90%<br />
75%<br />
50% 50%<br />
Europe: more than 40%<br />
45%<br />
40% 40% 40%<br />
HU SK PL CZ A D NL BE F DK CH<br />
► <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> No. 1 on almost all of the markets<br />
Page 121<br />
35%
Transformation processes in<br />
photo services from 2000 to 2010<br />
Page 122<br />
In addition to … now also …<br />
Analogue photo technology Digital photography<br />
Photofin<strong>is</strong>hing Digital printing<br />
Sales in stores Internet sales<br />
Transport service log<strong>is</strong>tics Mail order<br />
Production company Brand producer<br />
Analogue „must-do“- Marketing for a<br />
business „can-do“-business<br />
► Six individual processes of transformation were mastered
2010 Best Innovator Award<br />
Page 123<br />
► <strong>CEWE</strong> <strong>COLOR</strong> d<strong>is</strong>tingu<strong>is</strong>hed for the successful transformation from<br />
analogue to digital with the "Best Innovator" award of the<br />
Wirtschaftswoche journal and management consultants A.T. Kearney
Two <strong>CEWE</strong> <strong>COLOR</strong> growth phases<br />
Turnover (shown as a diagram)<br />
Page 124<br />
Growth I Transformation Growth II<br />
Analogue Digital<br />
Transformation phase<br />
Analogue / Digital<br />
Transformation:<br />
Restructuring completed<br />
Wave of investments<br />
completed<br />
(analogue)<br />
Fotofin<strong>is</strong>hing<br />
(digital)<br />
Online Print<br />
Retail<br />
Growth:<br />
<strong>CEWE</strong> PHOTO BOOK,<br />
Print products for<br />
commercial applications
<strong>CEWE</strong> <strong>COLOR</strong> results since 1998<br />
1. EBT before restructuring 3. Earnings before tax (EBT)<br />
30.1<br />
37.2<br />
30.0<br />
20.2<br />
17.5<br />
13.2<br />
16.8<br />
38.4<br />
27.8<br />
25.0<br />
22.1<br />
26.3 28.6<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
2. Restructuring costs<br />
0.0 0.0 0.0 0.0 0.0 0.0<br />
2.6<br />
12.9<br />
6.7<br />
12.2 11.4<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
* due to transformation from analouge to digital technology<br />
Page 125<br />
in EUR millions<br />
in EUR millions<br />
*<br />
*<br />
*<br />
* *<br />
9.5<br />
2.2<br />
in EUR millions<br />
16.2<br />
19.4<br />
13.7<br />
9.9 9.1<br />
3.6<br />
1.2<br />
11.5<br />
17.9<br />
5.9<br />
7.0 6.7<br />
13.7<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
► Concluded every year of the transformation phase with a profit<br />
*<br />
30.1<br />
37.2<br />
30.0<br />
20.2 17.5<br />
13.2 14.2<br />
25.5<br />
21.1<br />
12.8 10.7<br />
16.8<br />
26.4<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
4. Earnings after tax<br />
in EUR millions
Agenda<br />
Page 126<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Highlights 2011<br />
Results 2011 Target 2011* Actual 2011 Achievment<br />
Photos digital 2.05 billion photos 2.25 billion photos +9.8%<br />
analogue 0.245 billion photos 0.25 billion photos +2.0%<br />
total 2.295 billion photos 2.5 billion photos +8.9%<br />
<strong>CEWE</strong> PHOTO BOOKS 4.7 million books 5.1 million books +8.5%<br />
Investments EUR 31.0 million EUR 30.3 million -2.3%<br />
Turnover EUR 453.5 million EUR 469.0 million +3.4%<br />
EBIT EUR 29.5 million EUR 30.1 million +2.1%<br />
EBT EUR 27.5 million EUR 29.2 million +6.1%<br />
Earnings after tax EUR 17.5 million EUR 18.6 million +6.2%<br />
Earnings per share EUR 2.58 EUR 2.84 +1.2%<br />
► All targets for 2011 achieved<br />
* The average value <strong>is</strong> shown with respect to the target corridor 2011.<br />
Page 127
Photos in 2011<br />
Photos from films<br />
in millions<br />
1,277<br />
829<br />
558<br />
-31.7%<br />
368<br />
251<br />
2007 2008 2009 2010 2011<br />
Digital photos<br />
in millions<br />
1,515<br />
1,786<br />
► 2011 total photos at constant level<br />
Rounding differences might occur<br />
Page 128<br />
2,036<br />
+5.5%<br />
2,246 2,246<br />
2,129 2,129<br />
2007 2008 2009 2010 2011<br />
Photos total<br />
In millions<br />
+0.0%<br />
2,792 2,615 2,594 2,497 2,497<br />
2007 2008 2009 2010 2011
Photos total by quarter<br />
Seasonal d<strong>is</strong>tribution: <strong>CEWE</strong> 2007 to 2011<br />
Photos total - shares per quarter as a percentage<br />
19.8% 20.3% 19.4% 20.7% 19.0%<br />
2007 2008 2009 2010 2011<br />
Page 129<br />
24.4% 22.6% 22.5% 20.7% 20.8%<br />
2007 2008 2009 2010 2011<br />
32.4% 31.7% 30.4% 29.2% 29.8%<br />
2007 2008 2009 2010 2011<br />
Q1 Q2 Q3 Q4<br />
► Volume beyond expectations<br />
► End of seasonal shift seems to be near<br />
23.4% 25.4%<br />
30.5%<br />
29.4%<br />
27.7%<br />
2007 2008 2009 2010 2011
<strong>CEWE</strong> PHOTO BOOK growth<br />
Number of <strong>CEWE</strong> PHOTO BOOKS<br />
in thousands<br />
Page 130<br />
1,515<br />
2,646<br />
3,644<br />
4,337<br />
+18.6%<br />
5,146<br />
2007 2008 2009 2010 2011<br />
► <strong>CEWE</strong> PHOTO BOOK volume exceeded target<br />
Rounding differences might occur<br />
Target 2011:<br />
+7% to +12%
Value of photos<br />
Q1-Q4<br />
Photos total<br />
in millions<br />
► Value added products pushed Fotofin<strong>is</strong>hing-turnover<br />
Page 131<br />
2497 2497<br />
2010 2011<br />
+0.0%<br />
Value per photo *<br />
Turnover/photo [Eurocent/photo<br />
13.46 14.29<br />
2010 2011<br />
+6.2%<br />
Fotofin<strong>is</strong>hing-turnover<br />
Q1-Q4<br />
in Euro millions<br />
336.0<br />
356.9<br />
2010 2011<br />
* Only sales in the photofin<strong>is</strong>hing segments<br />
Rounding differences might occur<br />
+6.2%
Turnover<br />
Turnover<br />
in Euro millions<br />
413.5<br />
420.0<br />
409.8<br />
93.5<br />
446.8<br />
110.8<br />
316.3 336.0<br />
112.2<br />
356.9<br />
2007 2008 2009 2010 2011<br />
► Fotofin<strong>is</strong>hing carries increase in turnover<br />
Rounding differences might occur<br />
Page 132<br />
469.0<br />
+5.0%<br />
fx. adj.: +4.6%<br />
Retail:<br />
+1,3% (fx. adj. -1,4%)<br />
Fotofin<strong>is</strong>hing:<br />
+6,2% (fx. adj. +5,7%)
Shares of sales by quarter<br />
Seasonal d<strong>is</strong>tribution: <strong>CEWE</strong> 2007 to 2011<br />
Shares of sales per quarter as a percentage<br />
19.0% 19.6% 19.9% 18.8% 19.1%<br />
2007 2008 2009 2010 2011<br />
Page 133<br />
24.4%<br />
23.6%<br />
21.6% 21.6%<br />
20.6%<br />
2007 2008 2009 2010 2011<br />
29.9%<br />
28.0% 27.4% 26.1% 26.0%<br />
2007 2008 2009 2010 2011<br />
Q1 Q2 Q3 Q4<br />
► Sales beyond expectations<br />
► Also for turnover end of seasonal shift seems to be near<br />
26.7%<br />
28.7%<br />
31.1%<br />
33.6% 34.3%<br />
2007 2008 2009 2010 2011
EBIT<br />
EBIT<br />
in Euro millions<br />
14.3<br />
12.4<br />
18.7<br />
28.2<br />
30.1<br />
2007 2008 2009 2010 2011<br />
► EBIT +7%, +1,9 Euro millions<br />
+7.0%<br />
► EBIT-Margin increased from 6.3% to 6.4% of turnover<br />
Page 134<br />
Rounding differences might occur
EBIT before restructuring by quarter<br />
Seasonal d<strong>is</strong>tribution: <strong>CEWE</strong> 2007 to 2011<br />
EBIT share before restructuring per quarter as a percentage<br />
2007 2008 2009 2010 2011<br />
-15.4% -17.8% -19.8% -18.2% -17.3%<br />
14.8% 15.1%<br />
7.6% 6.0% 2.3%<br />
2007 2008 2009 2010 2011<br />
► EBIT expectations for Q4 achieved<br />
80.6%<br />
65.7%<br />
► Again very pronounced seasonal shift on EBIT-level<br />
Rounding differences might occur<br />
Page 135<br />
56.6%<br />
40.5%<br />
29.6%<br />
2007 2008 2009 2010 2011<br />
20.0%<br />
37.0%<br />
55.6%<br />
71.7%<br />
85.5%<br />
2007 2008 2009 2010 2011<br />
Q1 Q2 Q3 Q4
Earnings after tax<br />
Earnings after tax<br />
in Euro millions<br />
5.9<br />
7.0 6.7<br />
13.7<br />
18.6<br />
2007 2008 2009 2010 2011<br />
+35.5%<br />
► Increase of Earnings after tax also effected by special tax effect in 2010<br />
(EUR 3,0 millions)<br />
Rounding differences might occur<br />
Page 136
Balance Sheet data<br />
Assets<br />
Long-term<br />
asset<br />
values<br />
Short-term<br />
asset<br />
values<br />
287.5 m€ 289.7 m€ 287.5 m€ 289.7 m€<br />
119.5 m€<br />
41.6 %<br />
168.0 m€<br />
58.4 %<br />
114.3 m€<br />
39.5 %<br />
175.4 m€<br />
60.5 %<br />
► Equity ratio nearly unchanged at strong 41.9 %<br />
Rounding differences might occur<br />
Page 137<br />
Liabilities<br />
Equity<br />
Long-term<br />
debts<br />
Short-term<br />
debts<br />
120.7 m€<br />
42.0 %<br />
37.4 m€<br />
13.0%<br />
129.4 m€<br />
45.0 %<br />
121.5 m€<br />
41.9 %<br />
29.5 m€<br />
10.2 %<br />
138.7 m€<br />
47.9 %
Free Cash Flow Q1-Q4 2011<br />
52.6<br />
34.8 36.5<br />
53,0*<br />
60.3**<br />
2007 2008 2009 2010 2011<br />
+13.8%<br />
2007 2008 2009 2010 2011<br />
-41.9<br />
-33.8<br />
-26.6 -27.3<br />
-30.0<br />
-9.9%<br />
10.7<br />
1.0<br />
9.9<br />
25.6<br />
+17.9%<br />
30.2<br />
2007 2008 2009 2010 2011<br />
► Adjusted Cash flow unchanged im compar<strong>is</strong>on to previous year (one<br />
time investment of liquid funds)<br />
Page 138<br />
Cash Flow from<br />
operative business<br />
in EUR millions<br />
* without EUR 10 millions investment of liquid funds<br />
** without EUR 1 million investment of liquid funds<br />
Rounding differences might occur<br />
Outflow of funds from<br />
investment activities<br />
in EUR millions<br />
Free Cash Flow<br />
in EUR millions
ROCE<br />
EBIT<br />
in Euro millions<br />
14.3<br />
12.4<br />
18.7<br />
28.2<br />
30.1<br />
2007 2008 2009 2010 2011<br />
168.9 162.9 159.6 158.2 152.4<br />
2007 2008 2009 2010 2011<br />
ROCE*<br />
in %<br />
8.5% 7.6%<br />
► ROCE increased again: Strong return on capital of 19.8%<br />
Rounding differences might occur<br />
Page 139<br />
Average capital employed in the past<br />
4 quarters<br />
in EUR millions<br />
11.7%<br />
17.8%<br />
19.8%<br />
2007 2008 2009 2010 2011
Agenda<br />
Page 140<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Outlook 2012<br />
Target Change 2011<br />
Photos digital 2.13-2.18 billion photos -3% to -5%<br />
analogue 0.16-0.18 billion photos -30% to -35%<br />
total 2.29-2.36 billion photos -5% to -8%<br />
<strong>CEWE</strong> PHOTO BOOKS 5.7-5.9 million books +11% to +15%<br />
Investments 30-33 EUR millions -1% to +9%<br />
Turnover * 500-525 EUR millions +7% to +12%<br />
EBIT 27-33 EUR millions -10% to +10%<br />
EBT 25-31 EUR millions -14% to +6%<br />
Earnings after tax 16-20 EUR millions -14% to +8%<br />
Earnings per share 2.44-3.06 EUR -14% to +8%<br />
* fx. adjusted<br />
Page 141
<strong>CEWE</strong> <strong>COLOR</strong> typically unaffected by a weaker general economy<br />
Business increase<br />
at<br />
<strong>CEWE</strong> <strong>COLOR</strong><br />
in spite of weak<br />
overall economy<br />
Economic and financial cr<strong>is</strong><strong>is</strong> 2009<br />
� Photo products offer a<br />
high emotional value<br />
for consumers<br />
� Photo product<br />
expenses are<br />
comparatively low<br />
� Cocooning (typical<br />
withdrawal into one‘s<br />
private life at home in<br />
economically difficult<br />
times) has a<br />
supporting effect on<br />
sales of photo<br />
products<br />
► Company development of <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> solid and by and large<br />
detached from general economic development<br />
Page 142
Recent representative survey by forsa<br />
Page 143<br />
In a representative survey of October 2011 for Germany forsa-institute states that …<br />
56% 89%<br />
. . . 56% of the interviewed<br />
persons would be happy<br />
about self-made chr<strong>is</strong>tmasgifts<br />
(as e.g. a fotobook or<br />
picture)<br />
. . . 89% of the interviewed<br />
persons would be very<br />
happy about an individually<br />
designed fotobook as a<br />
present<br />
► Value-added photo products are in great demand as gift articles
Agenda<br />
Page 144<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Market position<br />
� Technological leadership<br />
(products, production and IT)<br />
� Internet expert<strong>is</strong>e<br />
� 40,000 outlets (POS)<br />
� Market leadership<br />
► <strong>CEWE</strong> <strong>COLOR</strong> has the best market position in Europe<br />
Page 145
Technological leadership<br />
► Technological leadership confirmed<br />
Page 146
<strong>CEWE</strong> <strong>COLOR</strong> digital photos total<br />
Internet and orders placed in stores<br />
in millions<br />
39<br />
170<br />
509<br />
830<br />
1,114<br />
1,515<br />
1,786<br />
2,036<br />
2,129<br />
2,246<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />
► New digital business in general has been successfully establ<strong>is</strong>hed<br />
Page 147
<strong>CEWE</strong> PHOTO BOOK growth<br />
Number of <strong>CEWE</strong> PHOTO BOOKS<br />
in millions<br />
► The <strong>CEWE</strong> PHOTO BOOK <strong>is</strong> the most popular photo book in Europe<br />
Page 148<br />
0.07<br />
0.5<br />
1.5<br />
2.6<br />
2005 2006 2007 2008 2009 2010 2011<br />
3.6<br />
4.3<br />
5.1
Market leadership in photofin<strong>is</strong>hing<br />
<strong>CEWE</strong> <strong>COLOR</strong> market shares<br />
in industrial photofin<strong>is</strong>hing<br />
95%<br />
90%<br />
90%<br />
75%<br />
50% 50%<br />
Europe: more than 40%<br />
45%<br />
40% 40% 40%<br />
HU SK PL CZ A D NL BE F DK CH<br />
► <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> No. 1 on almost all of the markets<br />
Page 149<br />
35%
Expansion of online printing<br />
► In its core business, <strong>CEWE</strong> <strong>COLOR</strong> has expanded online print<br />
capacities and skills (software!)<br />
Page 150<br />
Silver halide technology Online printing technology<br />
<strong>CEWE</strong> runs the<br />
biggest printing<br />
capacities in Europe<br />
for high-quality,<br />
4-colour digital<br />
prints
Online printing for commercial use<br />
► Online printing for commercial use: A new growth area for <strong>CEWE</strong> <strong>COLOR</strong><br />
Page 151<br />
Digital printing<br />
(lot size up to 500)<br />
Offset printing<br />
(lot size >500)<br />
Consumers Business clients
www.viaprinto.com<br />
Page 152
References<br />
POINT CONSULTING<br />
CONSULTING • SCIENCE • TRAINING<br />
Page 153
www.viaprinto.com – the online printing service<br />
▸ Starting from order size one<br />
▸ Easy to use<br />
▸ Fast delivery<br />
▸ High quality<br />
▸ Data security<br />
Page 154
Viaprinto presentation at digi:media exhibition<br />
Page 155
Awards for viaprinto<br />
Page 156
Customer sat<strong>is</strong>faction<br />
Page 157<br />
software usability<br />
offered products<br />
paper variety<br />
quality<br />
delivery time<br />
0 20 40 60 80 100<br />
customer service excellent<br />
► Customers are sat<strong>is</strong>fied with viaprinto‘s service<br />
good
Estimation on viaprinto‘s pricing<br />
Page 158<br />
very low priced<br />
low priced<br />
adequately<br />
expensive<br />
very expensive<br />
0 10 20 30 40 50
Would you recommend viaprinto?<br />
Page 159<br />
definitely<br />
rather yes<br />
rather no<br />
in no case<br />
0 10 20 30 40 50 60 70
Saxoprint:<br />
Products<br />
Flyer<br />
Brochures<br />
Booklets<br />
Banner<br />
Folder<br />
Cards<br />
etc.<br />
Page 160
Page 161
Page 162
Page 163
Page 164
<strong>CEWE</strong> <strong>COLOR</strong> competence base<br />
Web-to-print<br />
for commercial<br />
users Acquiring<br />
<strong>CEWE</strong><br />
PHOTOBOOK<br />
Digital<br />
photos<br />
Prints from<br />
film<br />
core competences<br />
Ordering software (online + offline)<br />
Log<strong>is</strong>tics<br />
Production<br />
Selling to<br />
commercial users<br />
Web-to-print<br />
Digital printing production<br />
Brand management<br />
CPB-design software<br />
Selling to consumers<br />
1990 1995 2000 2005 2010<br />
► <strong>CEWE</strong> <strong>COLOR</strong> accelerates the establ<strong>is</strong>hment of a competence base<br />
Page 165
Market penetration experience curves<br />
Market<br />
penetration<br />
Today<br />
1995 2000 2010<br />
► Digital printing about to become a mass market service<br />
Page 166<br />
Schematic diagram<br />
Digital<br />
cameras<br />
Internet<br />
Digital<br />
printing
Growth in revenue for various product groups<br />
2006 2007 2008 2009 2010 2011 2012<br />
CONCEPTUAL<br />
Prints from films<br />
Digital prints<br />
Photo gift articles<br />
(e.g., photo calendars, photo greeting<br />
cards)<br />
<strong>CEWE</strong> PHOTOBOOKS<br />
Business Printing<br />
Retail<br />
► Growth through digital printing (<strong>CEWE</strong> PHOTOBOOK, photo calendars,<br />
greeting cards and business printing)<br />
Page 167
Two <strong>CEWE</strong> <strong>COLOR</strong> growth phases<br />
Turnover (shown as a diagram)<br />
Page 168<br />
Growth I Transformation Growth II<br />
Analogue Digital<br />
Transformation phase<br />
Analogue / Digital<br />
Transformation:<br />
Restructuring completed<br />
Wave of investments<br />
completed<br />
(analogue)<br />
Fotofin<strong>is</strong>hing<br />
(digital)<br />
Online Print<br />
Retail<br />
Growth:<br />
<strong>CEWE</strong> PHOTO BOOK,<br />
Print products for<br />
commercial applications
Agenda<br />
Page 169<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
<strong>CEWE</strong> <strong>COLOR</strong> share price<br />
Performance 2010<br />
<strong>CEWE</strong>: +47.6%<br />
SDAX: +45.4%<br />
DAX: +16.1%<br />
Performance 2011<br />
<strong>CEWE</strong>: -5,9%<br />
SDAX: -14,8%<br />
DAX: -14,7%<br />
<strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
ISIN DE0005403901, WKN 540390, CWC<br />
► <strong>CEWE</strong> <strong>COLOR</strong> share stronger than SDAX and DAX<br />
Page 170
Trade volume<br />
Average number of traded shares per day<br />
6,823 7,6518,254<br />
Page 171<br />
11,209<br />
16,990<br />
12,673<br />
9,872<br />
14,82114,610<br />
10,691<br />
7,258<br />
10,491<br />
20,766<br />
30,501<br />
21,760<br />
26,362<br />
18,132<br />
12,098<br />
14,409 15,174<br />
� Avarage trade volume on significantly higher level<br />
than in previous years<br />
8,614<br />
35,308<br />
17,600<br />
11,079<br />
16,935<br />
15,721<br />
21,502<br />
12,339 11,24910,520 10,931<br />
20,456 20,222<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb<br />
2009 2010 2011 2012<br />
12,632<br />
15.543<br />
20.091<br />
21890<br />
13993
Shareholder structure (April 2012)<br />
7.38 million<br />
shares<br />
In acc. with § 21 and § 22 WpHG notification<br />
34.1%<br />
* not including shares owned by Dr. Jacobs, member of the<br />
Superv<strong>is</strong>ory Board, reported as Sentosa Beteiligungs-GmbH<br />
27.4% ACN Vermögensverwaltungs-<br />
gesellschaft mbH & Co. KG<br />
(joint heirs of Heinz Neumüller)<br />
10.0% <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
5.3% Sentosa Beteiligungs GmbH<br />
4.5% Sparinvest Holding A/S<br />
1.4% <strong>CEWE</strong> <strong>COLOR</strong> Board of<br />
Management and<br />
Superv<strong>is</strong>ory Board*<br />
51.4% Other shareholders<br />
60.5% Free Float (acc. to Deutsche Börse)<br />
► Joint heirs of company founder are the main shareholders in <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
► 34.1% of the shares are present in the Superv<strong>is</strong>ory Board and the Board of Management<br />
Page 172
Dividend<br />
Page 173<br />
in EUR<br />
0.60<br />
1.20 1.20 1.20<br />
1.00<br />
1.05<br />
► Dividend for 2011 will be increased to 1.40 euros<br />
1.25<br />
1.40*<br />
2004 2005 2006 2007 2008 2009 2010 2011<br />
* Dividend recommendation by Board of Management and Superv<strong>is</strong>ory Board to AGM (June 6, 2012)
<strong>CEWE</strong> <strong>COLOR</strong> Equity Story<br />
Shareholders<br />
making<br />
dec<strong>is</strong>ions<br />
~ 35%<br />
~ 35% of shares<br />
are represented<br />
in management<br />
and superv<strong>is</strong>ory<br />
board<br />
Natural consolidator<br />
in fotofin<strong>is</strong>hing<br />
� 25% fotobook market share<br />
in EU (x3 vs. #2)<br />
� 50% market share in Germany<br />
Strong brand awareness<br />
Favourable product mix shift Increasing margin protects price<br />
3.7 3.7<br />
6.7 6.7<br />
3.5 2.9<br />
4.6<br />
6.3<br />
'03 '04 '05 '06 '07 '08 '09 '10<br />
Strong equity ratio Solid cash position Stable also in weak economy<br />
41.9 %<br />
Equity ratio<br />
Dec 31, 2011<br />
net cash position per<br />
Dec 31, just after<br />
peak season; up to<br />
~20 mill. Euro net<br />
debt in off season<br />
Growth 2009<br />
-4.2%<br />
+1.8%<br />
► Reliabel stability, growing profitability, growth ahead<br />
Page 174<br />
�<br />
�<br />
�<br />
Growth ahead<br />
Growing profitability<br />
'06 '07 '08 '09 '10 '11 '12e<br />
Reliable stability<br />
Single<br />
prints<br />
Value<br />
Added<br />
products<br />
Retail<br />
New growth area commercial<br />
online printing<br />
EBIT-Margin [%]<br />
Euro 17<br />
21% unaided brand awareness<br />
36% aided brand awareness<br />
CWC revenue<br />
FX-adjusted<br />
(Jan 2011 in Germany,<br />
Source GfK Panel)<br />
Reliable<br />
Dividend<br />
Dividend per share<br />
[EUR]<br />
0.80 0.60<br />
1.20 1.20 1.20 1.00 1.05 1.25<br />
'03 '04 '05 '06 '07 '08 '09 '10
Analysts' opinions on <strong>CEWE</strong><br />
Page 175<br />
Overview of current analysts' opinions<br />
Analysts‘ opinion Date<br />
DZ Bank Buy 08.03.2012<br />
Commerzbank Buy 22.02.2012<br />
GSC Research Buy 13.02.2012<br />
BHF Bank Overweight 06.02.2012<br />
Nord LB Buy 03.02.2012<br />
Warburg Research Buy 03.02.2012<br />
Bankhaus Lampe Buy 03.02.2012<br />
Berenberg Bank Buy 03.02.2012<br />
CB Seydler Bank Buy 10.02.2012<br />
Silvia Quandt Research Buy 15.11.2011<br />
► Positive analysts' opinions throughout
Agenda<br />
Page 176<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
Sustainability aspects<br />
Page 177<br />
Corporate Responsibility<br />
Corporate Governance<br />
Corporate Social<br />
Responsibility<br />
Triple Bottom Line<br />
Economic<br />
responsibility<br />
Corporate Citizenship<br />
Responsibility for the<br />
environment<br />
Social responsibility<br />
Compliance with the German Corporate<br />
Governance Codex, Value Statement,<br />
Anti-Corruption, etc.<br />
Long-term added value,<br />
securing capacity to make<br />
payment, securing market<br />
shares, customer loyalty, etc.<br />
Environmental management<br />
system, waste management,<br />
green IT, log<strong>is</strong>tics, etc.<br />
Diversity in employee<br />
responsibility, work-life balance,<br />
health care, life-long learning,<br />
etc.<br />
Donating, sponsoring, trusts, promotion<br />
of culture, educational projects,<br />
humanitarian aid projects, etc.
Sustainability as an integral component of corporate culture<br />
Sustainability at <strong>CEWE</strong> <strong>COLOR</strong> also relates to:<br />
• Observing social standards<br />
• Active social commitment<br />
• Acting responsibly, economically and ecologically<br />
• Conducting business in compliance with national and international law<br />
and generally recogn<strong>is</strong>ed ethical principles<br />
► <strong>CEWE</strong> <strong>COLOR</strong> <strong>is</strong> actively committed to social responsibility<br />
► Acting responsibility <strong>is</strong> traditional at <strong>CEWE</strong> <strong>COLOR</strong> and <strong>is</strong> an integral<br />
component of the company's corporate culture<br />
Page 178
Agenda<br />
Page 179<br />
1. Company portrait<br />
2. Products<br />
3. Market situation<br />
4. Transition in technology 2004-2010<br />
5. 2011 annual financial statements<br />
6. 2012 outlook<br />
7. <strong>CEWE</strong> <strong>COLOR</strong> growth<br />
8. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
9. Sustainability<br />
10. Appendix
H<strong>is</strong>tory of <strong>CEWE</strong> <strong>COLOR</strong><br />
60s 80s<br />
• Founding<br />
• First industrial<br />
photofin<strong>is</strong>her in<br />
Germany<br />
Page 180<br />
70s<br />
• Sales in Belgium,<br />
France and the<br />
Netherlands<br />
• Sales in Austria, Denmark<br />
and Switzerland<br />
90s<br />
• AG and IPO<br />
• Production in<br />
2000<br />
• Expansion with digital<br />
products and services<br />
• Expansion of market<br />
shares in Europe<br />
• 2005 development and<br />
market launch of the<br />
<strong>CEWE</strong> PHOTOBOOK<br />
France, the Czech Republic,<br />
Poland, Hungary and Slovakia<br />
• Commencement with digital<br />
production<br />
Dev. to market leader in Germany European expansion Digital expansion
Two business personalities<br />
Page 181<br />
Senator h.c. Heinz Neumüller<br />
� Married the daughter of Carl Wöltje (photo<br />
retailer) in 1949<br />
� Founded <strong>CEWE</strong> <strong>COLOR</strong> in 1961<br />
� Managing Director until 1992<br />
� 1992 to 1998 Chairman of the Superv<strong>is</strong>ory<br />
Board of <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
Achieved market leadership<br />
in Germany<br />
Hubert Rothärmel<br />
� 1968 Joined <strong>CEWE</strong> <strong>COLOR</strong><br />
� 1973 Co-partner and Manager<br />
� 1992 – 2002 Chairman of the Board of<br />
Management of <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
� 1998 - 2004 Chairman of the Board of<br />
Management of the Neumüller <strong>CEWE</strong><br />
<strong>COLOR</strong> Foundation<br />
� Since 2002 Chairman of the Superv<strong>is</strong>ory<br />
Board of <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
European expansion
Board of Management of <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
Page 182<br />
Dr. Rolf Hollander, CEO<br />
MBA., until 1982 scientific ass<strong>is</strong>tant at Hamburg University and log<strong>is</strong>tics consultant; until 1986<br />
consultant with A.T. Kearney; since 1986 with CeWe Color, since 1992 member of the Board of<br />
Management of the Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation (Chairman since 2005); since 2002<br />
Chairman of the Board of Management of <strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
Dr. Reiner Fageth, CTO<br />
Doctorate at the University of Northumbria in Newcastle, UK, 1994 Deputy Head of Steinbe<strong>is</strong><br />
Transferzentrums BMS, followed by Head of Hardware & Software Development with Metec<br />
GmbH, 1998 Ass<strong>is</strong>tant to the Technical Director of <strong>CEWE</strong> <strong>COLOR</strong> AG & Co. OHG, Managing<br />
Director of the Neumüller CeWe Color Foundation since 2005 and member of the Board of<br />
Management of <strong>CEWE</strong> <strong>COLOR</strong> Holding AG since 1 January 2007, Head of Research and<br />
Development<br />
Dr. Olaf Holzkämper, CFO<br />
Studies in Business Admin<strong>is</strong>tration in Passau; doctorate in Business Admin<strong>is</strong>tration in Göttingen;<br />
employed by McKinsey & Company in Munich and Hong Kong, laterally as a junior partner,<br />
activities in cross-functional restructuring programs and in the areas of marketing & sales, in<br />
purchasing and in strategic development; Chairman of the Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation<br />
responsible for corporate development and Deputy Managing Director of Finances and Controlling.<br />
Andreas F.L. Heydemann, CIO<br />
1981 MBA., until 1983 Krupp GmbH, Essen; until 1989 consultant for EDP and Controlling with<br />
Knight Wendling AG, Düsseldorf/Zurich (laterally project manager); since 1989 member of the<br />
Management of <strong>CEWE</strong> <strong>COLOR</strong> and since 1997 member of the Board of Management,<br />
responsible for IT, materials management & purchasing, law, corporate governance and<br />
sustainability
Board of Management and Management<br />
of the Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation<br />
Page 183<br />
Harald H. Pirwitz<br />
After gaining professional experience in Sales and Marketing at Procter & Gamble, Pfanni, Erdal<br />
Rex and Wasa 1996 joined <strong>CEWE</strong> <strong>COLOR</strong> as Sales Manager, since 2005 member of the Board of<br />
Management of Neumüller CeWe Color Foundation in charge of Marketing and Sales<br />
Felix Thalmann<br />
University studies in constructional engineering and process engineering as well as a Bachelor of<br />
Engineering, professional experience gained with the Sw<strong>is</strong>s SAIS/ASTRA operations of the<br />
Unilever Group and with NORDSEE, four years as head of the Unilever Research Units in the<br />
Netherlands and in England, since 2000 as Managing Director and since 2005 member of the<br />
Board of management of the Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation, responsible for France,<br />
Benelux, Central Eastern Europe and Scandinavia as well as for expansion<br />
Dr. Michael Fries<br />
Doctorate in telecommunications at the Ruhr university in Bochum, followed by managerial<br />
positions with Bertelsmann Arvato, Mohn Media, Bertelsmann AG and Boston Consulting Group,<br />
2003 to <strong>CEWE</strong> <strong>COLOR</strong> as Managing Director in Dresden, since 2005 Managing Director of the<br />
Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation and since 2009 member of the board of management of the<br />
Neumüller <strong>CEWE</strong> <strong>COLOR</strong> Foundation, responsible for coordination of the German operations and<br />
for log<strong>is</strong>tics<br />
Dr. Rolf Hollander - Chairman of the Board of Management<br />
Dr. Reiner Fageth - Managing Director<br />
Andreas F.L. Heydemann - Managing Director<br />
Dr. Olaf Holzkämper - Managing Director<br />
Frank Zweigle - Member of the Board of Management
2012 financial calendar<br />
May 15, 2012 Interim Report Q1 2012<br />
June 6, 2012 AGM, Park Hotel, Bremen<br />
August 9, 2012 Interim Report Q2 2012<br />
November 8, 2012 Interim Report Q3 2012<br />
November, 12 2012 German Equity Forum, Frankfurt<br />
Page 184
IR contact<br />
Page 185<br />
Axel Weber<br />
Head of Investor Relations,<br />
Planning & Reporting<br />
<strong>CEWE</strong> <strong>COLOR</strong> Holding AG<br />
Meerweg 30 – 32<br />
D – 26133 Oldenburg<br />
Tel.: +49 (0) 441 / 404 - 2288<br />
Fax: +49 (0) 441 / 404 - 421<br />
E-Mail: IR@cewecolor.de<br />
Internet: www.cewecolor.com
Th<strong>is</strong> presentation contains forward-looking statements that are based on current<br />
assumptions and forecasts of the management of <strong>CEWE</strong> <strong>COLOR</strong>. Known and<br />
unknown r<strong>is</strong>ks, uncertainties and other factors could lead to material differences<br />
between the forward-looking statements given here and the actual development, in<br />
particular the results, financial situation and performance of our Company. The<br />
Company assumes no liability to update these forward-looking statements or to<br />
conform them to future events or developments.<br />
Diese Präsentation enthält in die Zukunft gerichtete Aussagen, die auf derzeitigen<br />
Annahmen und Prognosen der Unternehmensleitung der <strong>CEWE</strong> <strong>COLOR</strong> beruhen.<br />
Bekannte und unbekannte R<strong>is</strong>iken, Ungew<strong>is</strong>sheiten und andere Faktoren können dazu<br />
führen, dass die tatsächliche Entwicklung, insbesondere die Ergebn<strong>is</strong>se, die<br />
Finanzlage und die Geschäfte unserer Gesellschaft wesentlich von den hier<br />
gemachten zukunftsgerichteten Aussagen abweichen. Die Gesellschaft übernimmt<br />
keine Verpflichtung, diese zukunftsgerichteten Aussagen zu aktual<strong>is</strong>ieren oder sie an<br />
zukünftige Ereign<strong>is</strong>se oder Entwicklungen anzupassen.<br />
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