CEWE COLOR Holding AG - Deutsches Eigenkapitalforum
CEWE COLOR Holding AG - Deutsches Eigenkapitalforum
CEWE COLOR Holding AG - Deutsches Eigenkapitalforum
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>CEWE</strong> <strong>COLOR</strong><br />
Company Presentation<br />
German Equity Forum<br />
November 2010
Page 2<br />
This presentation contains forward-looking statements that are based on<br />
current assumptions and forecasts of the management of CeWe Color.<br />
Known and unknown risks, uncertainties and other factors could lead to<br />
material differences between the forward-looking statements given here and<br />
the actual development, in particular the results, financial situation and<br />
performance of our Company. The Company assumes no liability to update<br />
these forward-looking statements or to conform them to future events or<br />
developments.<br />
All numbers are calculated as exactly as possible and rounded for the<br />
presentation. Due to this, rounding errors might occur.
Page 3<br />
Agenda<br />
1. In a nutshell<br />
2. Who is <strong>CEWE</strong> <strong>COLOR</strong>?<br />
3. Analogue/digital transformation successful<br />
4. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
5. Q3/2010 and 2010 outlook<br />
66. Back Back-up up
Page 4<br />
Agenda<br />
1. In a nutshell<br />
2. Who is <strong>CEWE</strong> <strong>COLOR</strong>?<br />
3. Analogue/digital transformation successful<br />
4. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
5. Q3/2010 and 2010 outlook<br />
66. Back Back-up up
Analogue/Digital transformation (1/2)<br />
Analogue revenues<br />
Start of analogue/digital-transformation<br />
Decline of<br />
analogue<br />
business<br />
Number of production sites<br />
Restructuring costs*<br />
► The decline of the analogue business was a costly challenge<br />
* Restructuring due to the analogue/digital-transformation<br />
Page 5
Analog/Digital transformation (2/2)<br />
Investments<br />
Revenue<br />
Transformation phase<br />
analogue / digital<br />
Start of analogue/digital transformation<br />
► Ramping up the digital business was costly, too – but highly successful!<br />
Page 6
Highlights 2009 (1/2)<br />
Restructuring<br />
completed<br />
� Transformation-related<br />
restructuring activities<br />
concluded<br />
Digital business<br />
very successful<br />
� Digital printing<br />
successfully<br />
expanded<br />
� France reorganised � More than 50% Internet<br />
business<br />
� <strong>CEWE</strong> PHOTO BOOK<br />
Number 1 in Europe<br />
► Phase of significant restructuring completed<br />
Strong<br />
results<br />
► Digital business successful - transformation achieved<br />
► <strong>CEWE</strong> <strong>COLOR</strong> receives numerous awards<br />
Page 7
Highlights 2009 (2/2)<br />
Restructuring activities<br />
completed<br />
Page 8<br />
Digital business<br />
very successful<br />
Strong<br />
results
Key figures (1/2)<br />
Voolume<br />
P&L<br />
2004 2005 2006 2007 2008 2009 e2010<br />
Digital Prints million units 509 830 1,114 1,515 1,786 2,036 2,000<br />
Analogue Prints million units 3,025 2,603 1,765 1,277 829 558 350<br />
TTotal t l PPrints i t million units 33,534 534 33,433 433 22,879 879 22,792 792 22,615 615 22,594 594 22,350 350<br />
<strong>CEWE</strong> PHOTO BOOKS million units ‐ 0.07 0.53 1.52 2.64 3.64 4.20<br />
Revenues million euros 428.5 431.1 396.0 413.5 420.0 409.8 420‐430*<br />
EBITDA million euros 60.2 68.6 63.2 52.8 52.8 55.9<br />
EBITDA‐Margin % of revenue 14.0 15.9 16.0 12.8 12.6 13.6<br />
EBIT million euros 15.9 28.7 26.4 14.3 12.4 18.7 24‐29<br />
EBIT‐Margin % of revenue 3.7 6.7 6.7 3.5 3.0 4.6 5.7‐6.7<br />
EBT million euros 14.2 25.5 21.1 12.8 10.7 16.8 22‐27<br />
EBT before Restructuring million euros 16.8 38.4 27.8 25.0 22.1 26.3<br />
Profit after taxes million euros 1.2 11.5 17.9 5.9 7.0 6.7 12‐15<br />
All numbers after restructuring!<br />
* in exchange rate adjusted terms<br />
► Despite transformation: positive results all the way through<br />
► Conclusion of additional expenses through transformation in 2009:<br />
Better times ahead!<br />
Page 9
Key figures (2/2) 2004 2005 2006 2007 2008 2009 e2010<br />
Ballance<br />
Sheet<br />
Cash Flow<br />
Share<br />
Total Assets million euros 260.7 261.3 257.4 264.8 262.0 268.6<br />
Capital employed million euros 158.5 160.8 165.1 160.0 159.8 157.4<br />
Equity million euros 106.4 113.0 127.4 120.6 112.4 111.7<br />
Equity ratio % 40.8 43.2 49.5 45.5 42.9 41.6<br />
Net debt million euros 3.4 ‐10.1 10.1 8.3 13.6 25.2 24.3<br />
ROCE % 10.0 17.9 16.0 9.0 7.7 11.9<br />
Gross cash flow million euros 45.4 51.4 54.7 44.4 47.5 44.0<br />
Investments million eeuros ros 37 37.22 36 36.22 32 32.55 35 35.55 33 33.33 27 27.44 26<br />
Invest. in % of revenues % 8.7 8.4 8.2 8.6 7.9 6.7 6.0‐6.2<br />
Net cash flow million euros 8.2 15.2 22.2 8.9 14.1 16.6<br />
Cash Flow from Operations million euros 45.9 50.6 33.8 52.6 35.5 36.5<br />
Cash Flow from Investments million euros ‐35.0 ‐34.3 ‐32.8 ‐41.9 ‐33.8 ‐26.6<br />
Free Cash Flow million euros 10 10.99 16 16.33 10 1.0 10 10.77 17 1.7 99 9.9<br />
Earnings per share (diluted) * euros 0.19 1.43 2.39 0.83 1.02 1.00 1.76‐2.20<br />
Year end share price euros 22.26 41.35 33.00 27.00 14.05 22.60<br />
Dividend per share euros 0.60 1.20 1.20 1.20 1.00 1.05<br />
All numbers b after ft restructuring! t t i !<br />
* on average, after approximately 1,‐ euro restructuring costs per share (2005‐2009)<br />
► Current awards<br />
Page 10
Here is why you should invest in <strong>CEWE</strong> <strong>COLOR</strong><br />
1<br />
RReliable li bl Di Dividend id d<br />
Reduced extra burdens<br />
Growth<br />
Analogue to digital transition<br />
Mega trends as a growth driver:<br />
completed individualisation / personalisation<br />
2 3 4 5<br />
Profit grows*:<br />
No restructuring<br />
one-offs due to<br />
analogue / digital<br />
Cash Flow<br />
grows*:<br />
Reduced<br />
investment<br />
Growth in<br />
photofinishing<br />
with <strong>CEWE</strong><br />
PHOTOBOOKS,<br />
transformation volume photo calendars,<br />
greeting cards<br />
and other gifts<br />
* Ceteris paribus<br />
Page 11<br />
6<br />
Limited downside risk:<br />
� High equity capital ratio<br />
� Strong cash flows<br />
Additional<br />
growth<br />
through<br />
web-to-print<br />
for<br />
commercial<br />
digital printing
Share data<br />
Key share indicators<br />
Securities type No-par value share<br />
Market segment regulated market<br />
Prime Standard<br />
Index SDAX<br />
ISIN DE 0005403901<br />
Symbol CWC<br />
Reuters CWCG.DE<br />
Bloomberg CWC GR<br />
Date of initial listing March, 24 1993<br />
Number of shares 7,380,020 units<br />
Analysts<br />
Bankhaus Lampe<br />
BHF Bank<br />
CB Seydler<br />
Commerzbank<br />
DZ Bank<br />
GSC Research esea c<br />
Nord/LB<br />
Warburg Research<br />
Page 12<br />
<strong>CEWE</strong> <strong>COLOR</strong> <strong>Holding</strong> <strong>AG</strong><br />
ISIN DE0005403901, WKN 540390, CWC<br />
EUR<br />
45<br />
30<br />
15<br />
2005 2010<br />
Performance 2009<br />
<strong>CEWE</strong> <strong>CEWE</strong>: +60 +60.9% 9%<br />
SDAX: +26.8%<br />
DAX: +19.8%<br />
Performance Q1-Q3/2010<br />
<strong>CEWE</strong> <strong>CEWE</strong>: +20 +20.5% 5%<br />
SDAX: +22.9%<br />
DAX: +4.6%
Page 13<br />
Agenda<br />
1. In a nutshell<br />
2. Who is <strong>CEWE</strong> <strong>COLOR</strong>?<br />
3. Analogue/digital transformation successful<br />
4. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
5. Q3/2010 and 2010 outlook<br />
66. Back Back-up up
Overview <strong>CEWE</strong> products<br />
Photofinishing<br />
Products<br />
Page 14<br />
Prints from digital and analogue<br />
cameras<br />
<strong>CEWE</strong> PHOTOBOOK<br />
Photo gift g articles and pprint pproducts<br />
(e.g. calendars und greeting cards)<br />
� Digital printing becomes more important
Personalised photo products<br />
1. Print products 2. Wall decoration<br />
�� Add Added-value d l products d t to t generate t growth<br />
th<br />
Page 15<br />
3. Photo gift articles
<strong>CEWE</strong> PHOTOBOOK<br />
Page 16<br />
� The top seller
45,000 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 distribution and marketing<br />
Page 17<br />
System partners Food retailers & depart. stores<br />
� Retail sales channels with online retailers and system partners
Different ways to order <strong>CEWE</strong> products<br />
Ways<br />
to order<br />
Page 18<br />
Internet /<br />
1<br />
Website<br />
Online 2 <strong>CEWE</strong> PHOTOBOOK<br />
Software<br />
3<br />
Film / data carrier in<br />
a photo envelope<br />
Pointofsale Point of sale 4 DigiFotoMaker burns CD<br />
or sends data online<br />
5<br />
DFM kiosk with printer<br />
produces pictures at the POS<br />
� <strong>CEWE</strong> offers all possible ways to place an order
Photo servicer for retailers<br />
Retail<br />
<strong>CEWE</strong> <strong>COLOR</strong> Consumers<br />
Retail stores Production in an<br />
industrial plant<br />
Collecting in a store<br />
�<br />
or Ordering<br />
Despatch<br />
or<br />
Internet webshop by mail to customer‘s home<br />
�� Photo products are a service for retailers (no B to C)<br />
Page 19<br />
�
2010 corporate structure<br />
(in November 2010)<br />
Production sites<br />
� 12 production plants N<br />
� 24 European countries<br />
� 2,700 employees<br />
� 1,300 courier service drivers<br />
� 45,000 retail partners (POS)<br />
� 191 retail stores in<br />
� CCentral t l EEastern t Europe E and d NNorway<br />
� EUR 410 million revenue (2009)<br />
� <strong>CEWE</strong> <strong>COLOR</strong> is the leading photo service company in Europe<br />
Page 20<br />
IRL<br />
ES<br />
UK<br />
F<br />
NL<br />
B<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
Corporate structure of the <strong>CEWE</strong> <strong>COLOR</strong> Group<br />
Shareholders<br />
Joint heirs<br />
of Senator h.c. Heinz Neumüller<br />
(represented in the Supervisory Board of<br />
the holding company)<br />
Chairman and remaining<br />
Supervisory Board<br />
Elements of<br />
family management<br />
<strong>CEWE</strong> <strong>COLOR</strong> H<strong>Holding</strong> ldi <strong>AG</strong><br />
NNeumüller üll <strong>CEWE</strong> <strong>COLOR</strong> FFoundation d ti<br />
4 Directors, no other employees<br />
9 Directors/Managers, no other employees<br />
• Partner of the OHG<br />
• Managing partner of the OHG<br />
• PLC Supervisory Board<br />
• Board of Trustees<br />
• PLC Board of Management • Foundation executives/management<br />
<strong>CEWE</strong> <strong>COLOR</strong> <strong>AG</strong> & Co. OHG<br />
Approx. 2,700 employees<br />
• Responsible for managing all the <strong>CEWE</strong> COLO GROUP op. business<br />
• Headed by the Directors and Managers of the Foundation<br />
► Family management from two sources: shareholders and foundation<br />
Page 21
Advantages of family-run, stock-exchange listed companies<br />
Family enterprise<br />
Stockexchange<br />
listed<br />
company<br />
Advantages g<br />
Situation at <strong>CEWE</strong> <strong>COLOR</strong><br />
+ Less short-term quarterly mindset obliges�<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
Focus on a few core areas ...<br />
... in which the management is an expert<br />
No principal-agent problems<br />
mainly organic growth, only minor<br />
acquisitions<br />
Sound financing<br />
Transparent information policy<br />
�<br />
�<br />
��<br />
�<br />
�<br />
�<br />
Large-scale investment in digital technology in<br />
order to secure the future of the company<br />
Photofinishingg 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 />
BBoard d off MManagement andd SSupervisory i BBoard d<br />
with large share ownership<br />
Only small "digestible" acquisitions<br />
42 % equity capital ratio<br />
Comprehensive available credit lines<br />
Comprehensive IR activities<br />
Focus on earnings Profit in each year of transformation<br />
► <strong>CEWE</strong> <strong>COLOR</strong> combines bi th the advantages d t off stock-exchange t k h li listed t d<br />
companies and family enterprises<br />
Page 22<br />
�
Page 23<br />
Agenda<br />
1. In a nutshell<br />
2. Who is <strong>CEWE</strong> <strong>COLOR</strong>?<br />
3. Analogue/digital transformation successful<br />
4. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
5. Q3/2010 and 2010 outlook<br />
66. Back Back-up up
Film market in Germany<br />
Film sales in Germany<br />
in millions<br />
191 187<br />
170<br />
154<br />
127<br />
90<br />
64<br />
41<br />
30<br />
-88%<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />
► Films have declined by more than 88% since 2000<br />
Page 24<br />
23
Competitors in the photo industry<br />
Agfa Photo Insolvent<br />
VV-Dia Dia Insolvent<br />
Südcolor Insolvent<br />
Kodak Discontinued photofinishing<br />
Konica Minolta Photos discontinued<br />
Spector Ongoing photofinishing losses<br />
Photobox No profits reported<br />
Page 25<br />
► <strong>CEWE</strong> <strong>COLOR</strong> has mastered the technological transition<br />
better than its competitors
<strong>CEWE</strong> <strong>COLOR</strong> development in volume<br />
Total no. of photos (digital photos and photos from films)<br />
in billion photos<br />
3.5<br />
3.4<br />
► <strong>CEWE</strong> <strong>COLOR</strong> also hit by analogue decline<br />
Page 26<br />
2.9<br />
2.8<br />
2.6 2.6<br />
analogue<br />
di digital it l
Reduction in capacity<br />
Number of operations Number of employees<br />
23<br />
22<br />
20<br />
19<br />
15<br />
13<br />
12<br />
3,829 3,730<br />
3,131 3,124<br />
2,921<br />
2,742<br />
2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009<br />
Page 27<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 />
� From 2010 on nor more restructuring expenditure will occur due to<br />
analogue/digital transformation<br />
� Ceteris paribus profits will increase by approx. 10 million euros<br />
from 2010 on<br />
Page 28
Requirements for restructuring<br />
resulting from the analogue/digital transformation<br />
Change from<br />
analogue to<br />
Digital photography<br />
Reduction of<br />
total production capacity<br />
Reduction of<br />
production of network density<br />
� 2 triggers of the finalised analogue / digital transformation:<br />
Page 29<br />
NNetwork t k ddensity it and d capacity<br />
it
Core measures in the analogue/digital transformation process<br />
A. Capacities adjusted<br />
BB. Innovations launched early<br />
1 Investments in new technologies<br />
2 Sales channels adapted (Internet)<br />
3 NNew products d t ddeveloped l d<br />
4 Brand established<br />
5 Basis for the future set<br />
C. Soundly financed<br />
► Transformation means innovation<br />
Page 30
Early start to innovation<br />
1994 1997 1998<br />
Digital photos<br />
First digital station<br />
Online<br />
as a PhotoIndex worldwide photo p oto offer o e<br />
Page 31<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)
Investments in digital printers 1<br />
Page 32<br />
► Technology for producing digital photos on photo paper established
Investments in digital printers 1<br />
Page 33<br />
► More than 50 digital printers (electronic method)<br />
HP Indigo, Kodak Nexpress and Xerox iGen in operation
Investments in industrial book binding 1<br />
Page 34
Investment in new technologies 1<br />
Investments<br />
in EUR millions<br />
40.4<br />
Page 35<br />
29.5<br />
21.3<br />
21,3<br />
37.2 36.2 35.5<br />
32.5<br />
36.0<br />
36<br />
34.5 34.1<br />
34,5 34,1<br />
32.5<br />
32,5<br />
35.5<br />
35,5<br />
>EUR 250 million<br />
in investments<br />
33.3<br />
33.3<br />
33,3<br />
27.4<br />
2002 2003 2004 2005 2006 2007 2008 2009<br />
► Since 2002 alone, more than EUR 250 million has been invested in new<br />
technologies<br />
27.4<br />
26,0
New sales channels<br />
Ordering photo products<br />
at order stations<br />
Page 36<br />
► 25,000 POS installations<br />
Instant printing<br />
2
Internet sales innovation 2<br />
Example:<br />
Drogerie Müller<br />
► Including the Internet in marketing activities<br />
Page 37
New product innovation 3<br />
1. Print products 2. Wall decoration<br />
► Huge g trend for personalising p g products p<br />
Page 38<br />
Canvas<br />
Acrylic<br />
glass l<br />
Alu-<br />
Dibond<br />
3. Photo gift articles
Personalised photo calendars 3<br />
► The trend is individuality<br />
Page 39
Photo calendars<br />
Desk-top calendar<br />
Wall calendar<br />
► Popular Christmas gifts<br />
Page 40<br />
Many a y formats, o a s, many a y designs desg s<br />
Wall appointment<br />
calendar<br />
3<br />
Desk-top appointment calendar<br />
Kitchen and<br />
birthday calendar Span-a-year calendar
Photo greeting cards<br />
Page 41<br />
HHome-made d wedding ddi cards d<br />
3
Photo greeting cards<br />
Seite 42<br />
Page 42<br />
Birth<br />
announcements<br />
3
Photo greeting cards<br />
Page 43<br />
CCommunion i / confirmation fi ti<br />
3
Photo greeting cards<br />
Page 44<br />
Ch Christmas i t cards d with ith personal l ttexts t and d photos h t<br />
3
Disney designs 3<br />
In cooperation with Disney designs renowned characters are offered for many<br />
products:<br />
Page 45
Disney designs 3<br />
In cooperation with Disney designs renowned characters are offered for many<br />
products:<br />
Page 46
Photo gift articles<br />
Mousepad<br />
PProducts d t with ith personal l photos, h t ttexts t and d ddesigns i<br />
Mug<br />
Teddy SSnowflake fl k bball ll PPuzzle l<br />
Backpack<br />
► <strong>CEWE</strong> <strong>COLOR</strong> offers a wide range of personalised photo products<br />
Page 47<br />
3
Wall decoration 3<br />
► Photo canvases are attractive for<br />
decorating walls<br />
Page 48<br />
Canvas<br />
Acrylic glass<br />
Alu-Dibond
Wall decoration 3<br />
XXL poster with i h poster collages ll up to 160cm 160 x 90 90cm<br />
► Individual layout and design with <strong>CEWE</strong> software<br />
Page 49
The top seller:<br />
<strong>CEWE</strong> PHOTOBOOK<br />
Page 50<br />
3
<strong>CEWE</strong> PHOTO BOOK<br />
Large<br />
Square<br />
Photo booklet<br />
► Widest range:<br />
photo booklet, square, large, XL and XXL formats<br />
Page 51<br />
XXL format (42 x 30 cm)<br />
3
<strong>CEWE</strong> PHOTO BOOKS in photo paper<br />
Page 52<br />
<strong>CEWE</strong> PHOTO BOOK XL<br />
<strong>CEWE</strong> PHOTO BOOK large<br />
(in a panorama format)<br />
<strong>CEWE</strong> PHOTO BOOK SQUARE<br />
3
<strong>CEWE</strong> SPECIAL-OCCASION PHOTO BOOKS<br />
Your digital photos combined with professional contents<br />
Themes:<br />
Travel photo book<br />
Page 53<br />
Photo yearbook<br />
3<br />
Photo book<br />
chronicle
<strong>CEWE</strong> SPECIAL-OCCASION PHOTO BOOKS<br />
Your digital photos combined with professional contents<br />
Themes:<br />
Baby photo book<br />
Wedding photo book<br />
► <strong>CEWE</strong> supplies consumers with additional contents<br />
Page 54<br />
3
Commercial use for <strong>CEWE</strong> PHOTO BOOKS<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> PHOTO BOOK as an image brochure<br />
Page 55<br />
3
Photobook market shares in Western Europe<br />
100%<br />
90%<br />
80%<br />
70%<br />
60% Schmidkonz<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
20 %<br />
23 %<br />
► <strong>CEWE</strong> PHOTOBOOK continuously yggains<br />
market shares<br />
Source: Futuresource Consulting<br />
Page 56<br />
17 %<br />
25 %<br />
2006 2007 2008 2009<br />
Others<br />
Photobox<br />
Infowerk<br />
Hofmann<br />
3<br />
Albumprinter<br />
CeWe Color
Brand presentation in stores 4<br />
Page 57
Search engine marketing for the brand 4<br />
► <strong>CEWE</strong> PHOTO BOOK is the number 1 in the search for "photo books"<br />
Page 58
Brand campaigns in daily newspapers and magazines 4<br />
Page 59
TV advertising –Christmas 4<br />
► SAT SAT.1 1 Christmas tip<br />
► November – December 2009<br />
► Scope: approx. 34 million contacts<br />
Page 60
TV campaign 4<br />
► Approx. 1,200 TV spots in February / March 2010<br />
Page 61
Exhibitions at more than 20 trade shows in 2009 4<br />
Page 62
Digital printing for commercial use<br />
Large enterprises:<br />
Project solutions<br />
SoHo & SME:<br />
Public solution<br />
www.viaprinto.de<br />
► Digital printing for commercial use: A new growth area for <strong>CEWE</strong> <strong>COLOR</strong><br />
Page 63<br />
5
Core measures in the analogue/digital transformation process<br />
A. Capacities adjusted<br />
BB. Innovations launched early<br />
1 Investments in new technologies<br />
2 Sales channels adapted (Internet)<br />
3 New products developed<br />
4 Brand established<br />
5 Basis 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 64
Test wins and awards gained<br />
Technological leadership confirmed<br />
Page 65
<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 />
2036 2,036<br />
2002 2003 2004 2005 2006 2007 2008 2009<br />
► New digital business in general has been successfully established<br />
Page 66
<strong>CEWE</strong> PHOTO BOOK growth<br />
Number of <strong>CEWE</strong> PHOTO BOOKS<br />
in millions<br />
0.07 0,07<br />
05 0.5 05 0,5<br />
1.5 1,5<br />
2.6 2,6<br />
3.6 3,6<br />
2005 2006 2007 2008 2009<br />
► The <strong>CEWE</strong> PHOTO BOOK is the most popular photo book in Europe<br />
Page 67
Market shares consistently increased<br />
<strong>CEWE</strong> <strong>COLOR</strong> market shares<br />
in industrial photofinishing, Germany<br />
Page 68<br />
25%<br />
35%<br />
45%<br />
50%<br />
2001 2004 2007 2009<br />
► <strong>CEWE</strong> is steadily increasing its market leadership
Market leadership in photofinishing<br />
<strong>CEWE</strong> <strong>COLOR</strong> market shares<br />
in industrial photofinishing<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> is No. 1 on almost all of the markets<br />
Page 69<br />
35%
Transformation processes in<br />
photo services from 2000 to 2009<br />
Page 70<br />
In addition to … now also …<br />
Analogue photo technology Digital photography<br />
Photofinishing Digital printing<br />
SSales l iin stores t IInternet t t sales l<br />
Transport service logistics Mail order<br />
Production company p y Brand producer p<br />
Analogue „must-do“business<br />
Marketing for a<br />
„can-do“-business<br />
► Six individual processes of transformation were mastered
2010 Best Innovator Award<br />
► <strong>CEWE</strong> <strong>COLOR</strong> distinguished 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<br />
Page 71
Two <strong>CEWE</strong> <strong>COLOR</strong> growth phases<br />
Turnover (shown as a diagram as of 2010)<br />
Page 72<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 />
Digital<br />
Retailing<br />
Growth:<br />
<strong>CEWE</strong> PHOTO BOOK, ,<br />
print product<br />
Commercial applications
<strong>CEWE</strong> <strong>COLOR</strong> results since 1998<br />
1. EBT before restructuring 3. Earnings before tax (EBT)<br />
in EUR millions in EUR millions<br />
30.1<br />
37.2<br />
30.0<br />
20.2<br />
17.5 16.8<br />
13.2<br />
2. Restructuring g costs*<br />
38.4<br />
27.8<br />
25.0<br />
26 26.33 24.5<br />
22.1<br />
37.2<br />
30 30.11 30 30.00<br />
20.2<br />
17.5<br />
13.2 14.2<br />
25.5<br />
24.5<br />
21.1<br />
16.8<br />
12.8<br />
10.7<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 e2010 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 e2010<br />
in EUR millions<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 9.5<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 e2010<br />
* due to transformation from analouge to digital technology<br />
Page 73<br />
0.0<br />
4. Earnings g after tax<br />
in EUR millions<br />
16.2 19.4<br />
13.7<br />
9.9 9.1<br />
3.6<br />
1.2<br />
11.5<br />
17.9<br />
59 5.9 7.0 67 6.7<br />
13.5<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 e2010<br />
► Concluded every year of the transformation phase with a profit
Page 74<br />
Agenda<br />
1. In a nutshell<br />
2. Who is <strong>CEWE</strong> <strong>COLOR</strong>?<br />
3. Analogue/digital transformation successful<br />
4. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
5. Q3/2010 and 2010 outlook<br />
66. Back Back-up up
<strong>CEWE</strong> <strong>COLOR</strong> share price<br />
Performance 2009<br />
<strong>CEWE</strong>: +60.9%<br />
SDAX: +26.8%<br />
DAX: +19.8%<br />
Performance Q1-Q3/2010<br />
<strong>CEWE</strong>: +20.5%<br />
SDAX: S +22.9% 9%<br />
DAX: +4.6%<br />
<strong>CEWE</strong> <strong>COLOR</strong> <strong>Holding</strong> <strong>AG</strong><br />
ISIN DE0005403901, DE0005403901 WKN 540390, 540390 CWC<br />
EUR<br />
45<br />
30<br />
15<br />
2005 2010<br />
► <strong>CEWE</strong> <strong>COLOR</strong> share price rose over 20% in the first nine months of 2010<br />
Page 75
Trade volume<br />
Average number of traded shares per day<br />
in units<br />
13,664<br />
4,886<br />
4,178 3,8804,082<br />
22,586 586<br />
2,0571,444 Page 76<br />
20,344<br />
20,766<br />
8,629<br />
10,303<br />
8,366<br />
7,651<br />
6,823 8,254<br />
16,990<br />
14,82114,610 12,673<br />
11,209<br />
9,872<br />
10,691 10,491<br />
7,258<br />
30,501<br />
21,760<br />
26,362<br />
18,132 ,<br />
12,098<br />
14,409<br />
15.174<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<br />
2008 2009 2010<br />
� Avarage trade volume on significantly higher level<br />
8.614<br />
35.308
Shareholder structure (November 2010)<br />
7.38 million<br />
shares<br />
In acc. with § 21 and § 22 WpHG notification<br />
35.5%<br />
* Acc. to the company<br />
** not including shares owned by Dr. Jacobs, member of the<br />
Supervisory Board Board, reported as Sentosa Beteiligungs-GmbH<br />
27 27.4% 4% ACN VVermögensverwaltungs ö lt<br />
gesellschaft mbH & Co. KG<br />
(joint heirs of Heinz Neumüller)<br />
7.8% Nord LB *<br />
6.7% Sentosa Beteiligungs GmbH<br />
5.0% <strong>CEWE</strong> <strong>COLOR</strong> <strong>Holding</strong> <strong>AG</strong><br />
44.0% 0% Sparinvest <strong>Holding</strong> A/S<br />
1.4% <strong>CEWE</strong> <strong>COLOR</strong> Board of<br />
Management and<br />
Supervisory Board**<br />
47.7% Other shareholders<br />
52.0% Free Float (acc. to Deutsche Börse)<br />
► Joint heirs of company founder are the main shareholders in <strong>CEWE</strong> <strong>COLOR</strong> <strong>Holding</strong> <strong>AG</strong><br />
► Represent 35.5% of the shares in the Supervisory Board and the Board of Management<br />
Page 77
Dividend<br />
Page 78<br />
in euros<br />
0.80<br />
0.60<br />
1.20 1.20 1.20<br />
1.00<br />
► <strong>CEWE</strong> was paying out the full amount of its profits to its<br />
shareholders in 2009<br />
► Dividend yield 3.8% *<br />
1.05<br />
2003 2004 2005 2006 2007 2008 2009<br />
* RRefers f tto the th XXetra t price i tto th the amount t of f EUR 27.71/share 27 71/ h of f 8 April A il 2010, 2010<br />
12.48 p.m. (point in time of Supervisory Board resolution)
Analysts' opinions on <strong>CEWE</strong><br />
Overview of current analysts' opinions<br />
Analysis opinion Date<br />
Nord LB Buyy 15.11.2010<br />
Warburg Research Buy 15.11.2010<br />
BHF Bank Overweight 15.11.2010<br />
Bankhaus Lampe Buy 15.11.2010<br />
Commerzbank Buy 10.11.2010<br />
GSC Research Buy 02.09.2010<br />
CB Seydler Bank Buy 17.08.2010<br />
DZ BBank k BBuy 27 27.04.2010 04 2010<br />
► Positive analysts' opinions throughout<br />
Page 79
Page 80<br />
Agenda<br />
1. In a nutshell<br />
2. Who is <strong>CEWE</strong> <strong>COLOR</strong>?<br />
3. Analogue/digital transformation successful<br />
4. <strong>CEWE</strong> <strong>COLOR</strong> share<br />
5. Q3/2010 and 2010 outlook<br />
66. Back Back-up up
Highlights Q1-Q3/2010 (1/4)<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Return on on capital capital employed employed doubled<br />
Balance sheet sound and cash flow<br />
strongly gy increasing g<br />
Earnings on the way to double<br />
earnings per share<br />
Photo volume on the way to<br />
achieving the annual target<br />
Increased marketing secures pole<br />
position for the decisive fourth quarter<br />
► Q1-Q3/2010 well on track: EPS are to double in 2010<br />
Page 81
Shares of sales by quarter<br />
SSeasonal l distribution: di t ib ti <strong>CEWE</strong> <strong>COLOR</strong> 2006 to t 2010<br />
Shares of sales per quarter as a percentage<br />
Q1 Q2 Q3 Q4<br />
€ 425* m<br />
target g sales<br />
2010<br />
€ 85 m € 89 89.3 3 m<br />
€ 110 110.5 5 m<br />
Actual<br />
figures<br />
Page 85<br />
€ 84.0 m<br />
� � �<br />
€ 96.4 m<br />
€ 116.4 m<br />
► Development of turnover in Q3 even exceeds expectations<br />
*Aim: € 420-430 m
Q3 turnover<br />
Q3 turnover<br />
in EUR millions<br />
Turnover expectations acc. to aim of<br />
€ 425 million for 2010 and seasonal shift<br />
�<br />
110.5<br />
+3.8%<br />
fx adj.: +0.8%<br />
Retail: + € 6.9 million<br />
(+30.1% – fx adj.: +19.2%)<br />
Fotofinishing : - € 2,7 million<br />
(-3.0% – fx adj.: -3.9%)<br />
► Turnover increased by 3.8%, particular retailing raise turnover<br />
► Development e e op e t in Fotofinishing oto s g turnover tu o e acc. acc to seasonal seaso a sshift t<br />
Rounding differences might occur<br />
Page 86
Value of photos Q3/2010<br />
-3.2%<br />
+5.0%<br />
► Enhance values of the photos also in Q3<br />
* Only sales in the photofinishing segments<br />
Rounding differences might occur<br />
Page 88<br />
-7.6%
Photos total by quarter<br />
Seasonal distribution: <strong>CEWE</strong> <strong>COLOR</strong> 2006 to 2010<br />
Photos total - shares per quarter as a percentage<br />
2.4 billion<br />
photos<br />
Actual<br />
figures<br />
Page 89<br />
Q1 Q2 Q3<br />
0.50<br />
billion<br />
0.52<br />
billion<br />
0.50<br />
billion<br />
0.70<br />
billion<br />
�� �� ��<br />
0.52<br />
0.70<br />
billion<br />
billion<br />
► Q3 volume in line with<br />
expectations
Photos in Q3<br />
Page 90<br />
Photos Q3<br />
in millions<br />
947 905<br />
828<br />
789<br />
-7.6%<br />
-36.3%<br />
+1.3%<br />
► Share of digital photos raises to 83.7% and drives trend<br />
„from f mass tto class“ l “<br />
729<br />
Ph Photos t from f films fil<br />
Digital photos
<strong>CEWE</strong> PHOTO BOOK growth in Q3<br />
Number of <strong>CEWE</strong> PHOTO BOOKS in Q3<br />
in thousands<br />
► <strong>CEWE</strong> PHOTO BOOK volume rises as expected<br />
Rounding differences might occur<br />
Page 93<br />
+14.2%<br />
2010 aim: +17%
<strong>CEWE</strong> PHOTO BOOK growth in Q1-Q3<br />
Number of <strong>CEWE</strong> PHOTO BOOKS in Q1-Q3<br />
in thousands<br />
► <strong>CEWE</strong> PHOTO BOOK volume rises as expected<br />
Rounding differences might occur<br />
Page 94<br />
+18.7%<br />
2010 aim: +17%
EBIT before restructuring by quarter<br />
SSeasonal l distribution: di t ib ti <strong>CEWE</strong> <strong>COLOR</strong> 2006 to t 2010<br />
EBIT share before restructuring per quarter as a percentage<br />
Q1 Q2 Q3 Q4<br />
€ 26.2-31.2<br />
million EBIT<br />
ttarget t f for<br />
2010<br />
€ -5.5 5 5 million to € -<br />
6.6 million<br />
€ 11.3 3 million to € 16 1.6<br />
million<br />
€ 11 11.5-13.7 5 13 7 m<br />
Actual<br />
figures<br />
Page 95<br />
� � �<br />
€ -5.5 million € 1.8 million<br />
€ 12.3 m<br />
* EBIT change before restructuring through taking account of <strong>AG</strong>M costs in Q2 and Q3 2007 ► Q3 right on track<br />
Rounding differences might occur<br />
Ist
EBIT last 12 month<br />
Page 99<br />
EBIT (last 12 month)<br />
in Euro millions<br />
► EBIT (ltm) ( ) doubled<br />
Rounding differences might occur<br />
+96.5%
Marketing expenditure since 2002<br />
Marketing expenditure<br />
in in EUR millions<br />
► Strong marketing-level now achieved<br />
* incl. expenditure for photokina exhibition<br />
Page 103
Seite 104
Unaided brand awareness <strong>CEWE</strong> FOTOBUCH<br />
► Investments in marketing are paying off<br />
► Pole-Position for decisive fourth quarter achieved<br />
Page 105
Aided brand awareness <strong>CEWE</strong> FOTOBUCH<br />
► Investments in marketing are paying off<br />
► Pole-Position for decisive fourth quarter achieved<br />
Page 106
Free cash flow in Q3<br />
CCash h fl flow from f OOutflow tfl of f funds f d from f FFree Cash C h Flow Fl<br />
operative business<br />
in EUR millions<br />
Rounding differences might occur<br />
+29 +29.2% 2%<br />
investment activities<br />
in EUR millions<br />
+20.7%<br />
in Euro millions<br />
► Free Cash Flow increases by EUR 6.5 millions<br />
► Working capital management sees cash flow from operative business<br />
increasing<br />
► Investments reduced<br />
Page 108<br />
+119%
Free cash flow in Q1-Q3<br />
CCash h fl flow from f OOutflow tfl of f funds f d from f FFree Cash C h Flow Fl<br />
operative business<br />
in EUR millions<br />
Rounding differences might occur<br />
investment activities<br />
in EUR millions<br />
in Euro millions<br />
+150% +15.1% +213%<br />
► Free Cash Flow increases by EUR 21.9 millions due to reduction in cash<br />
out for restructuring<br />
► Investments reduced<br />
Page 109
12-month ROCE<br />
12-month EBIT<br />
[in EUR millions]<br />
Average capital<br />
employed in the<br />
past 4 quarters (as<br />
at 30.9.2010) 30 9 2010)<br />
[in EUR millions]<br />
12 12-month month ROCE*<br />
[%]<br />
Before restructuring After restructuring<br />
2009<br />
21.3<br />
2010<br />
24.2<br />
2009<br />
11.2<br />
2010<br />
22.0<br />
168 168.7 7 156 156.4 4<br />
168 168.7 7 156 156.4 4<br />
► 12-month 12 month ROCE soars by 77.1 1 percentage points to 14 14.1%<br />
1%<br />
Rounding differences might occur<br />
Page 110<br />
* ROCE = 12-month EBIT / ∅ Invested Capital (∅ of the four previous quarters)
2010 Outlook (1/2)<br />
Change against 2009<br />
Colour photos digital 2.0 billion photos +/-0%<br />
analogue 0.35 billion photos -41%<br />
total 22.35 35 billion photos -10% 10%<br />
<strong>CEWE</strong> PHOTO BOOKS 4.2 million books +17%<br />
Turnover * EUR 420-430 million +2.4% to +4.9%<br />
EBIT EUR 24-29 million +29% to +56%<br />
Earnings g before tax ( (EBT) )<br />
EUR 22-27 million +31% to +61%<br />
Earnings after tax EUR 12-15 million +78% to +123%<br />
Earnings per share EUR 1.76 to 2.20 +74% to +118%<br />
* exchange-rate adjusted<br />
Page 111<br />
► Outlook unchanged and confirmed
Change language