DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Final Results
CEWE with growing earnings in 2014 as well

26.03.2014 / 07:00


CEWE with growing earnings in 2014 as well 

  - Earnings per share higher than ever before in 2013

  - Photofinishing earning power reinforced again in 2013

  - Online printing increases by almost 40% in 2013 

  - New business segment of online printing to generate turnover of more
    than 100 million euros by 2016

  - Income for 2014 expected to rise by 10%

Oldenburg/Frankfurt am Main, 26 March 2014.  CEWE Stiftung & Co. KGaA
(SDAX, ISIN: DE 0005403901) is aiming for more earnings-oriented growth in
2014 as well. From an earnings point of view, the Board of Management
expects income to exceed the targets for 2013 by around 3 million euros.
The continued increase in the earning power of photofinishing business is
contributing the advance payments for expansion in the promising,
high-growth segment of online printing. CEWE is endeavouring to have the
shareholders participate in the positive development of the company by way
of an increased dividend for the current business year as well. This was
announced by CEWE during the Annual Report Press Conference held today in
Frankfurt am Main. Following the successful business year of 2013, in which
CEWE achieved or exceeded its targets, the Board of Management and the
Supervisory Board will be proposing a dividend increase to 1.50 euros a
share for the 2013 business year to the shareholders participating in the
Annual General Meeting on 4 June - the fifth dividend increase in
succession. In 2013, with turnover at 528.6 million euros (+4.2%), CEWE
achieved a new record high and raised EBIT to 29.4 million euros (+1.0%).
Without the restructuring costs for the operations in Dresden and Graudenz,
EBIT would have improved by 12.3% to 32.7 million euros. Earnings before
tax (EBT) increased by 3.5% to 27.8 million euros in 2013. Earnings after
tax , at 21.6 million euros, also clearly exceeded the target corridor of
16 to 20 million euros, one of the reasons being the change in the legal
form of the company, and earnings per share (undiluted), at 3.29 euros, was
higher than ever before in the history of the company (target corridor:
2.44 to 3.06 euros). Thanks to the positive earnings trend in the business
area of photofinishing, in which the adjusted operative earnings were
increased to 39.5 million euros, CEWE more than compensated for the
negative non-recurring effect from depreciation of goodwill in the amount
of 2.7 million euros.

Adjusted photofinishing EBIT rises to 39.5 million euros
With turnover at 367.7 million euros, the business segment of
photofinishing added 2.4% to its turnover for the previous year (2012:
359.3 million euros), and comfortably exceeded its turnover target of up to
365 million euros. In the seasonal focus, the fourth quarter, alone,
turnover rose by more than 10% to 145.3 million euros (Q4 2012: 132.0
million euros). The contribution to turnover in the fourth quarter rose
over that of the previous year, from 37.2% of the total annual turnover for
photofinishing to 39.5 %, thus again confirming the trend towards a
seasonal shift to the fourth quarter. This trend also applies for the CEWE
PHOTO BOOK. With full-year growth at 3.4% to 5.8 million books, the
increase in fourth-quarter sales was above-average at 6.0% to 2.2 million
books, thus accounting for a share of almost 39% of the annual volume. 
Against the background of a rising proportion of added-value products in
the product mix, the average turnover for all photos rose by 6.4%, from
14.60 eurocents per photo in the previous year of 2012 to 15.53 eurocents
per photo in 2013. The earning power of the photofinishing business area
even rose by as much as 12.7% to 36.3 million euros (previous year. 32.2
million euros). Adjusted by the restructuring costs for location mergers in
Dresden and Graudenz (Poland) incurred in the amount of 3.3 million euros
in the first six months of 2013, EBIT was even as high as 39.5 million
euros before these non-recurring effects.

Online printing grows by almost 40 % - more than 100 million euro aimed for
in the period up to 2016
Online printing turnover rose by 40% to around 60 million euros in 2013.
CEWE is thus well on the way to reaching its target turnover of 100 million
euros in this business segment by 2016. The weighting of the elements in
this business area alone shifted against the original plans:  growth in
SAXOPRINT and CEWE online offset printing exceeds the growth achieved in
digital printing. CEWE has thus reduced the goodwill of Diron, which was
taken over in 2008 and resulted in the digital printing presence, by 2.7
million euros.  Dr. Hollander: "This does not in any way change the
potential of our online printing business area. We are not investing in
goodwill; instead we are investing in equipment, in skills and in business.
This all remains unchanged. The value now depends less on the name
viaprinto, it is focused more on Saxoprint and CEWE PRINT." Goodwill
accounts for a mere 7.7% in the CEWE balance sheet. CEWE has clearly more
than compensated for the negative non-recurring effect of the depreciation
with a positive photofinishing margin. Before the non-recurring effect
resulting from the depreciation of goodwill as described above, the
business segment of online printing improved its EBIT by 0.5 million euros
to amount to  -4.3 million euros (previous year of 2012: -4.8 million
euros). In this case the fact that investments in marketing were only made
as of August in 2012 must be taken into account; in 2013 investments in
marketing were made throughout the year. The additional marketing expenses
were fully borne by the increase in sales. CEWE expects online printing
earnings to improve again in 2014.
Retailing contributes positively to the consolidated profit
The retailing business segment generated turnover in the amount of 101.0
million euros with cameras and hardware in the year of the report, thus -
due to a generally problematic photo hardware retail climate - not quite
reaching the same level as in the previous year: 105.0 million euros). In
2013, CEWE retail business contributed a total of 76,000 euros (previous
year of 2012: 1.7 million euros) to the consolidated profit. The fact that
retailing takes in a considerable volume of photofinishing orders must also
be taken into account. By far the largest share of related income is
allocated to the strategic business segment of photofinishing.

Outlook: 10% increase in earnings targeted  
The Board of Management is aiming for a further clear increase in earnings,
with a slight growth in turnover, even though the company is still
continueing to make advance payments for opening up the promising market
for online printing. "We are foregoing earnings potential in the short
term, in order to raise our sustainable earning power," says Dr. Hollander.
In 2014 the consolidated turnover in all the business segments is to
increase slightly from 528.6 million euros to an average 525 to 540 million
euros. For the high-margin sector of photofinishing, thanks to added-value
products, the Board of Management is expecting turnover to be relatively
stable. If possible, a potential decline in retailing turnover is to be
more than offset by the expected increase in turnover generated by online
printing. After 59.8 million euros in 2013, the management believes that an
increase in online printing turnover to more than 70 million euros is
possible in 2014. CEWE continues to set its sights on achieving the 100
million euro mark for online printing in 2016. The target corridors for
profits in comparison to 2013 are all being set at an increase of 3 million
euros for 2014. EBIT is to be in a corridor of 30 million to 36 million
euros in 2014, EBT is to be between 28 million and 34 million euros and
after tax earning between 19 million and 23 million euros. Earnings per
share are to be in the range of 2.84 to 3.45 euros (2013:. 3.29 euros). At
the same time the management is confirming its aim of consistently raising
dividends in the coming years.


Business segments


CEWE:                  Unit      Q4 2012   Q4 2013     2012        2013
(1) Photofinishing
Turnover               in EUR m. 133.4     145.3       359.2       367.7
EBIT                   in EUR m. 28.9      35.9        32.2        36.3
EBIT margin            %         21.6%     24.7%       9.0%        9.9%
(2) Retailing (R)
Turnover               in EUR m. 30.5      24.5        105.0       101.0
EBIT                   in EUR m. 1.5       1.3         1.7         0.1
EBIT margin            %         5.0%      5.3%        1.6%        0.1%
Core business (PF + R)
Turnover               in EUR m. 163.8     169.8       464.2       468.7
EBIT                   in EUR m. 30.4      37.2        33.9        36.4
EBIT margin            %         18.5%     21.9%       7.3%        7.8%
(3) Online printing
Turnover               in EUR m. 14.4      18.2        43.0        59.8
EBIT                   in EUR m. -1.2      -1.0*       -4.8        -4.3*
EBIT margin            %         -8.8%     -5.6%       -11.1%      -7.1%
CEWE Group
Turnover               in EUR m. 178.2     188.1       507.2       528.6
EBIT                   in EUR m. 29.1      33.5        29.1        29.4
EBIT margin            %         16.3%     17.8%       5.7%        5.6%
ROCE                   %                               14.9%       15.4%
                                                 2013    Turnover  510-530
                                                             EBIT  27-33
                                                       EBIT margin



* adjusted by goodwill depreciation in the amount of 2.7 million euros
(1) Photofinishing:  Production and sale of photo products such as CEWE
(analogue and digital) photos as well as other photo products.

(2) Retailing: Trading in CEWE's own retail stores in Norway, Sweden,
Poland, the Czech Republic and Slovakia with photo hardware such as cameras
and lenses

Core business: Aggregate of photofinishing and retailing

(3) Online printing: Production and sale of commercial print products in
the online printing portals at CEWE-PRINT.de, Saxoprint.de and Viaprinto.de
Full year of 2013 in comparison to the previous year and outlook 2014


CEWE Group             Unit         2012      2013      2013      2014
                                              target    actual    target
Digital prints         in billion   2.30      2.10 -    2.25      2.15 -
                       units                  2.15                2.20
Prints from films      in billion   0.16      0.10 -    0.11      0.075 -
                       units                  0.11                0.085
Total prints           in billion   2.46      2.20 -    2.37      2.23 -
                       units                  2.26                2.29
CEWE PHOTO BOOK        in m. units  5.6       5.8 - 6.0 5.8       5.8 - 5.9
Turnover               in EUR m.    507.2     510 - 530 528.6     525 - 540
EBIT                   in EUR m.    29.1      27 - 33   29.4      30 - 36
EBIT margin            %            5.7%      5.1% -    5.6%      5.6% -
                                              6.5%                6.9%
EBIT before            in EUR m.    29.1                32.6
EBIT margin before     %            5.7%                6.2%
EBT                    in EUR m.    26.9      25 - 31   27.8      28 - 34
Earnings after tax     in EUR m.    18.8      16 - 20   21.6      19 - 23
Earnings per share     in euros/    2.88      2.44 -    3.29      2.84 -
undiluted              share                  3.06                3.45


Fourth quarter of 2013

CEWE Group                Unit       Q4 2012   Q4 2013   Diff. %   Diff.
Digital prints            in m.      747       759       1.5%      +12
Prints from films         in m.      31        22        -27.9%    -9
Total prints              in m.      778       781       0.4%      +3
CEWE PHOTO BOOK           in m.      2.1       2.2       6%        0.1
Turnover                  in EUR m.  178.2     188.1     +5.6%     +9.9
EBIT                      in EUR m.  29.1      33.5      +14.9%    +4.3
EBIT margin               %          16.3%     17.8%     +1.5% pts
EBIT before restructuring in EUR m.  29.1      33.5      +14.9%    +4.3
EBIT margin before        %          16.3%     17.8%     +1.5% pts
EBT                       in EUR m.  28.7      33.0      +15.2%    +4.3
Earnings after tax        in EUR m.  22.1      28.1      +27.3%    +6.0


Percentage deviations have all been calculated at the exact values.


Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, e-mail: IR@cewe.de

Internet: www.cewe.de , www.cewe-fotobuch.de , www.cewe-print.de ,
www.viaprinto.de , www.saxoprint.de

Available in app stores: The CEWE Investor Relations app for your iPad(R)
or Android tablet, including annual reports and quarterly reports as well
as sustainability reports.

Financial schedule:
26 March 2014 2013 Annual Report  
26 March 2014 Annual report and analysts' press report, Frankfurt/Main 
3 April 2014  Deutschland Conference Bankhaus Lampe, Baden-Baden
13 May 2014   Publication of the Q1 2014 interim report  
13 May 2014   Analysts' telephone conference on Q1  
4 June 2014   Annual General Meeting, Weser-Ems-Halle,Oldenburg
13 August 2014 Publication of the H1 2014 half-year financial report
13 August 2014      Analysts' telephone conference on H1  
19 September 2014   Capital Market Day @ photokina, Cologne
12 November 2014    Publication of the Q3 2014 interim report  
12 November 2014    Analysts' telephone conference on Q3
24 November 2014    German Equity Forum, Frankfurt

About CEWE: The photo and online print service company CEWE, with 11
highly-technical production operations and a staff of around 3,200
employees in 24 European countries, is both market and technological
leader. In 2013 CEWE delivered around 2.37 billion prints, 5.8 million CEWE
PHOTO BOOK and photo gift articles to more than 34,000 retail partners to
generate consolidated turnover of 528.6 million euros. CEWE is a "first
mover" in the introduction of new digital technologies and products. In the
new business segment of online printing, printed material for advertising
is marketed through the sales platforms CEWE-PRINT.de , saxoprint and
viaprinto. In 1961 CEWE was founded by Senator h. c. Heinz Neumüller. The
company went public under the leadership of Hubert Rothärmel in 1993. CEWE
Stiftung & Co. KGaA is listed on the SDAX.

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Language:    English                                                   
Company:     CEWE Stiftung & Co. KGaA                                  
             Meerweg 30-32                                             
             26133 Oldenburg                                           
Phone:       +49 (0)441 40 4-1                                         
Fax:         +49 (0)441 40 4-42 1                                      
E-mail:      IR@cewe.de                                                
Internet:    www.cewe.de                                               
ISIN:        DE0005403901                                              
WKN:         540390                                                    
Indices:     SDAX                                                      
Listed:      Regulierter Markt in Berlin, Frankfurt (Prime Standard);  
             Freiverkehr in Düsseldorf, Hamburg, Hannover, München,    
End of News    DGAP News-Service  
259551 26.03.2014