cewe company presentationir.cewe.de/download/companies/cewe/companypresentation/c... · 12...

CEWE Company PresentationNovember, 2017

1. In a nutshell

2. Corporate Development

3. Sustainability

4. Annual results 2016

5. Results Q3 2017

6. Share

Agenda

12 production plants

24 European countries

3,500 employees

20,000 retail partners (POS)

EUR 593.1 million revenue (2016)

2017 corporate structure

Page 3

CEWE is the leading photo service company in Europe

N

S

DKLT

PL

RO

SK

H

CZ

ACH

I

SLOHR

ES

F

DB

NL

UKIRL

Production sites

Business segments of CEWE

► CEWE: 3 business segments

Page 4

2016

Revenuein EUR millions

593.1

Photofinishing

Commercial

Online Print

Retail

2016

84.0

452.0

54.9

DACH63%

Western Europe

23%

Eastern Europe

7%

Scandic6%

Rest 2%

20,000 retail partners in Europe

Page 5

CEWE reaches consumers through strong retail brands

Retail partners invest in distribution and marketing

Retail sales channels with online retailers and system partners

Travel businessGrocery & department storesElectronics retailers

Drugstores Photographic retailers Internet retailers

http://www.budni.de/index.php/article_775/contractor_2http://www.budni.de/index.php/article_775/contractor_2http://www.migros.ch/Migros_DE/Content/http://www.migros.ch/Migros_DE/Content/http://www.kruidvat.nl/http://www.kruidvat.nl/

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Hardware Retail

(digital)

(analogue)

Commercial

Online-Print

Photofinishing

Transformation phase

Analogue / Digital

Revenue

CEWE growth phases

Transformation:

Restructuring completed

Wave of investments

completed

Growth:

CEWE PHOTOBOOK & other

value added photo products

Print products for commercial use

Page 6

CONCEPTUAL

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Growth in revenue for various product groups

► CEWE PHOTOBOOK and photo gift articles replace single-print revenue

(analogue as well as digital)

Page 7

Photo gift articles(e.g. calendars, greeting

cards, wall decoration)

CEWE PHOTOBOOKS

Digital prints

Hardware Retail

Prints from films

Commercial Online Print

CONCEPTUAL

Ph

oto

fin

ish

ing

Revenue

Operational Photofinishing EBIT margin

Page 8

► Profitability in photofinishing continues

to increase due to product mix shift

7.8%

8.6%9.0%

9.5%10.2%

10.5%

11.7%

2010 2011 2012 2013 2014 2015 2016

CEWE position in photofinishing

► CEWE has a strong position in the market: high entrance barriers

Natural consolidator

High market share very likely to

see the volumes of suppliers

leaving the market shifting to

CEWE

CEWE PHOTO BOOK is the

leading photo book (market share

of 24% by volume):

Unaided brand awareness in

Germany

CEWE is the market leader “The trend is our friend”Product mix shift raises margin

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Photofinishing revenue

in EUR millions

Photo gift articles

CEWE PHOTOBOOK

Digital prints

Prints from films

in % of turnover

Operational Photofinishing

EBIT margin

7.8%8.6% 9.0%

9.5%10.2% 10.5%

11.7%

2010 2011 2012 2013 2014 2015 2016

Profitability in photofinishing

continues to increase due to

product mix shift

Online order and POS

delivery is a USP

Around 50% of customers

chose to be fetched

Increasing volume of

photos from mobile devices

Ordering via

mobile devices

Outstanding software

program with an assistant

function

Biggest product range

Various designs

Full customer service

(7/9am-10pm)

Best printing quality

through separate

optimisation each photo

Excellent book-binding

quality

21%

51%

2011 2012 2013 2014 2015 2016 2017

Photobook market in Western Europe

► Market leader CEWE: CEWE PHOTOBOOK with 23% market share (volume)

Page 10

Photobook Total Volume 2016: 25.1 M Units Market Share (volume) Photobook Producers 2016

Worldwide camera production figures from 1947 to 2014

Source: mayflower

0

1.3 bn.

0

120 m.

… incl. smartphones

► Smartphones are the most important

devices for taking pictures

Camera production volume …

Page 11

Brand overview CEWE photofinishing

Brand awareness CEWE PHOTOBOOK in Germany

Page 13

Unaided brand awareness

Aided brand

awareness 2017:

70%

Source: 2011-2016 GfK, 2017 Nielsen

21%

51%

2011 2012 2013 2014 2015 2016 2017

Net Promoter Score CEWE PHOTO BOOK in Germany

► CEWE PHOTO BOOK hugely popular

Page 14

21%

23%

36%

37%

39%

40%

43%

58%

Hugo Boss

mobile.de

BMW

Volkswagen

Audi

Mercedes Benz

Amazon

CEWE FOTOBUCH

CEWE PHOTO BOOK: Customers‘ voices

Frau Platzek (D) Frau Jaworski (D)Familie Wartmann (D)

Familie Voigt (D)Familie Oppenheimer (D)Familie Barth (D)

Familie Stäger (CH)

Familie Caillou (FR)

Familie Koers (NL) Frau Benedikt (AT)

Frau Gantzhorn (DK)

Frau Jentzsch (D)

Frau Bergmann (D)

Frau Broeks (D)

Familie Baur (D)

Familie Fauster (AT)

Familie Grove (UK)

Familie Safijanski (PL) Familie Majewski (PL)

Familie Martincovi (CZ) Familie Rehovi (CZ)

Familie Brunovi (SK) Frau Liskova (SK)

Familie Sasvari (HU)

Familie Mosebo (NO)

Page 15

► All countries with a positive development

Brand Awareness “CEWE PHOTO BOOK”

Unaided brand awareness [%]

Page 16

Base: Online Population Age 18 upwards; Persons who ever heard about photobooks; in %. Source: Nielsen 2017

Question 3a: Which photobook manufacturers or suppliers do you know of, at least by name?

*asked in Sep’15

Advent calendarsArt PrintsCases

2017 Product Innovations

► 27 product innovations in seven categories

CEWE Apps

Page 18

CEWE PHOTOWORLD CEWE POSTCARD CEWE CALENDAR

CEWE SERVICE

CEWE MY PHOTOS

CEWE PHOTO CONTEST CEWE ON TOUR CEWE OPTIMIZE

CEWE EFFECTS CEWE GOO CEWE HAPPY FACES CEWE BOOTH CEWE IR SERVICE

CEWE KIOSK

CEWE PURE

NEW

CEWE PHOTOBOOK pure

► The small CEWE PHOTO BOOK variant, ideal for all smartphone users

► Simply choose 22 photos, add a title and personal dedication and you're done!

Refinement: New Formats and Paper Qualities

► Refinements available for more hard cover

formats and on premium matt paper

New formats:

Compact Panorama

Square

XXL

XXL Panorama

New paper qualities:

Premium matt digital print

Full Finishing (Refinement): Backgrounds with Effect Varnish

► Raised outlines now also available in an all-over,

pre-arranged design for hard covers

Formats:

Compact Panorama

Square

Large/ large panorama

XL

XXL

XXL Panorama

Paper qualities:

All

CEWE CARDS: Refinement and Editable, Refined Text

► Larger range of CEWE cards that can be refined

► Personal editable text passages can also be refined to

design

New formats:

Classic cards (set of 10 cards)

XL cards (set of 10 cards)

A2 Wall Calendar: Premium Matt / with a High-Gloss Finish

► Impressive A2 format

Dimensions:

42 x 59 cm (portrait)

59 x 42 cm (panorama)

Paper quality:

Premium matt digital print

Digital print with a

high-gloss finish

Smartphone Cases

► Three new materials for even more diversity in your choice of a

personal mobile phone covers

► Always the latest models from all the smaprtphone manufacturers:

iPhone 8 and X also already available

Material:

Leather case

Wooden hard case

Wooden Kevlar case

Advent Calendar to Fill Yourself

► Chocolate, cosmetics, vouchers, toys or jewellery: whatever it is that makes

your loved ones happy – there's a place for it in an Advent calendar you fill

yourself

Design Elements for Many Products

► New design elements for CEWE PHOTO BOOKS, CEWE CARDS and other

photo gifts

Store. Organise. Edit. Order.

Anytime. Anywhere. On any device.

Page 27

Awards

Page 28

“Stiftung Warentest (German consumer

foundation): CEWE PHOTO BOOK 2015 test

winner – quality to delight”

“CEWE has the best photo books. The only

producer to be awarded a "Good" for digital

printing and for the premium photo book is

CEWE. No other producer was judged better.”

Source: German consumer foundation (Stiftung Warentest)

“From a reader point of view, CEWE has the

best app and the best range of online products.”

Source: connect magazine

Awards

► CEWE distinguished with the 2010 Best Innovator and 2016 Digital

Champions Award for the most successful company transformation

Page 29

The three CEWE online print brands

► Portals focus on different customer groups

e.g. through designs, order processes or product portfolios

Small ordersIndustrial printing companyCEWE brand awareness

Flyers Leaflets Folders Business cards

Page 30

Print market in Germany (job printing)

0.1 0.1 0.1 0.2 0.30.4 0.6

0.7 0.8 0.9

6.1 6.25.6 5.3 5.1 4.9 4.5 4.3 4.1 3.9

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Offline Print

Online Print

Page 31

Market volume job printing in Germany in EUR billions

Source: Market: Statistisches Bundesamt, bvdm

Online Print: Top 5 Creditreform + Top 6-20 & Vistaprint; estimation CEWE

6.2 6.3

5.75.5 5.4 5.3

► Online print market is increasing

5.1 5.0 4.9 4.8

Benefits of Online Printing

► The internet makes printing more efficient

Page 32

The sum of all advantages are directly handed over to our customers:

Significant price advantage

Printing quality

Service quality/personal contact person

Standard artwork check included

Acceptance of print data until 6pm for next day delivery

Environmentally conscious printing

Reseller benefits

The benefit results from a maximum utilisation of the printing paper, less

waste per order and lean processes

3

11

55 66

Economies of scale in the production of trimmed and folded goods

A

C

D

FE

B

A

FE

Portal / e-commerce Printing Finishing Despatch

Many standardised orders

are collected via the portals in

a short time

Maximum utilisation by

generating a collected form

for printing in depth

Highly automated finishing for

trimmed and folded goods

Direct shipment of individual

orders (A-F)

11

3

B

C

33D

Cost of printing plate and set-up costs

are borne by a large number of orders!

No sorting required:

every order placed

by a customer is

automatically sorted

and stacked!

► Heidelberg XL 162-8-P

Page 34

Technical difference between offset and digital printing

Colour

Paper

Offset printing

High one-off costs for producing the cylinder

Low variable printing costs

Digital printing

Colour

Paper

Cleaning

Electric charge

No one-off costs for producing the cylinder

Moderate variable printing costs

Cleaning

Printing plate that determines

where colours stick; is etched

into a colour-carrying cylinder

► Elimination of one-off costs for producing the cylinder with digital printing makes print runs 1 cost-effective

► CEWE operates with webshops in 10 different countries

Page 36

CEWE’s Commercial Online-Print activities in Europe

► CEWE continues to grow in commercial online printing

► Takeover enables CEWE to generate mutual growth and achieve better

purchase conditions and other economies of scale

Page 37

CEWE takes over online printing company LASERLINE

LASERLINE expected to contribute 15

million euros to turnover in 2018

As of 2019, LASERLINE to contribute

positively to Group earnings

Contribution to earnings is not yet expected

to be positive in 2018

LASERLINE operates in Berlin and has a staff

of more than 160 employees

LASERLINE has an outstanding customer

base, a comprehensive product range, high-

quality technical facilities

Takeover still needs to be authorised by the

relevant Monopolies and Mergers

Commission

New: easy box for custom-made folding box products

► Formats configurable down to a millimetre at favourable prices

New products

Deckchairs

Stickers & Labels NCR Printing

All Weather Signs & Corrugated Plastic Signs

► New products are constantly expanding the B2B range

1.4

43.0

59.8

70.577.8

84.0

2011 2012 2013 2014 2015 2016 e2017

Commercial Online-Print

► Commercial Online-Print is also expected to grow in

sales in 2017 in most markets, an exception could be

the British market after the Brexit decision

Page 40

Revenue (in Euro millions)

CEWE´s retail business

Page 41

► Retail segment contains hardware revenue only, fotofinishing revenue is

shown in fotofinishing segment

► Own retail business provides an excellent window to the market

N

S

PL

SKCZ

143 retail stores

EUR 54.9 million revenue (2016) with photo-

hardware (cameras, lenses, tripods, etc.)

Sales of fotofinishing products in fotofinishing

segment

CEWE retail strategy

Brand

Service

DistributionFocus on

photos

► Focus on photofinishing products in CEWE-retail shops

Page 42

Retail strategy

► Focus on photofinishing products in CEWE-retail shops

► Adjustments in hardware pricing to improve margins

Page 43

Photofinishing

products

Photo

hardware

2008 2009 2010 2011 2012 2013 2014 2015 2016 e2017

EBIT Development

Page 44

► Annual EBIT-target for 2017 increased: 45-51 Euro millions

in Euro millions

-2.9 Euro millions Retail EBIT

2.2 Euro millions one-off cost

= Commercial Online Print start-up costs

3.3 Euro millions restructuring costs

2.7 Euro millions goodwill depreciation

1.0 Euro millions restructuring costs


28.329.4

27.2

17.9

11.2

28.9

32.6

36.4

45

51

47.0


EBIT LTM as of Sept.

2017: 46.1 Euro millions

Outlook 2017

* Operative investments without potential investments in expanding the business volume and,

for example, corporate acquisitions and/or additional customer-base acquisitions

Targets 2016 Target 2017 Change

Photos digital billion photos 2.18 2.08 to 2.18 -4% to 0%

Photos analogue billion photos 0.06 0.040 to 0.045 -29% to -20%

Photos total billion photos 2.23 2.12 to 2.23 -5% to 0%

CEWE PHOTO BOOK million books 6.2 6.00 to 6.25 -3% to +1%

Investments* Euro millions 49.8 approx. 55

Revenue Euro millions 593.1 585 to 615 -1% to +4%

EBIT Euro millions 47.0 45 to 51 -4% to +8%

EBT Euro millions 46.2 44.5 to 50.5 -4% to +9%

Earnings after tax Euro millions 30.4 30 to 34 0% to +13%

Earnings per share Euro per share 4.25 4.23 to 4.81 0% to +14%

Page 45

► Outlook 2017 increased

~ 28%

Shareholders

making

decisions

~ 28% of shares

are represented

in management

and supervisory

board

► Reliable stability, growing profitability, growth ahead

CEWE Equity Story

Strong equity ratio Solid cash position Stable also in weak economy

53.8 %

Equity ratio

Dec 31, 2016

Highest net cash

position per Dec 31,

just after peak

season

Growth 2009

+1.8%

-4.2%

Euro 17

CWC revenue

FX-adjusted

Reliable stability

Page 46

51% unaided brand awareness

70% aided brand awareness

(in Germany,Source

Nielsen Panel)

EBIT

08 09 10 11 12 13 14 15 16

Growing profitStrong brand awareness True profitability was hidden

Favourable product mix shift protects price by online print ramp-up

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Single

prints

Value

Added

products

Retail

Online Print

17,819,8

14,5 15,016,8 17,2

21,3

'10 '11 '12 '13 '14 '15 '16

2,02

2,84 2,873,36

3,07 3,15

4,23

'10 '11 '12 '13 '14 '15 '16

1.00 1.051.25

1.40 1.45 1.501.55 1.60

1.80

'08 '09 '10 '11 '12 '13 '14 '15 '16

Reliable

Dividend

Dividend per share[EUR]

ROCE[%]

Strong ROCE

EPS

Earnings per share[EUR]

Natural consolidator and growth

in fotofinishing

26% fotobook market share

in EU (x3 vs. #2)

40% market share in Germany

Growth ahead

Growth area:


1. In a nutshell


3. Sustainability


5. Results Q3 2017

6. Share

Agenda

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Hardware Retail


Photofinishing

Revenue development 1990 to 2014

Corporate development: Early innovations as key success factor

Page 48

CEWE invents the

„Photo Index“ as first

digitally produced picture

CEWE

installs

first photo

terminal

worldwide

First online

webshop

for photo

products

by CEWE

Add-on of

competencies:

web-based

digital printing

for professionals

CEWE starts

M&A discussions

in business

printingCEWE

introduces

Viaprinto

CEWE acquires Saxoprint

and introduces CEWE-PRINT

Each growth area needs patience … and long-term perspective

CEWE introduces the

„Photo-CD“ (digitization of

analogue films and prints)

Corporate development: Expanding in adjacent growth areas

► In order to avoid cannibalization, CEWE is targeting adjacent

growth (in addition to continuous innovation of the core business)

► Even in core business: Continuous innovation

Page 49

Core Growth Options

Analogue

Photo-

finishing

Digital

Photo-

finishing

Silver-halide

Processing

Digital

Printing

Technology Technology

Commercial

Online-Print

Technology Technology

Additional

online

business

with mass

customization

approach

Offset

PrintingAdd-on/new

production

technology

Customers Customers Customers Customers

Retailers Retailers

End-Consumers

Business Customers New & existing

customer groupsNEW

NEW

NEW

NEW

NEW

NEW

Start-up screening logic: In search of adjacent growth

► Start-up characteristics: CEWE‘s well-known areas of expertise,

but also new ground in adjacent areas

Page 50

Potential new businessCEWE competences

Online business model

Mass Customization

Outstanding high-quality products with

substantial customer benefit (USP)

Strong brand building

Capability to scale businesses internationally

Potential to leverage strong retail relationships

1. In a nutshell


3. Sustainability


5. Results Q3 2017

6. Share

Agenda

Principles of our sustainable actions

► CEWE assumes responsibility

Corporate responsibility

Future economic viability

Protection of resources and the environment

Responsibility for employees

Social commitment

Page 52

1

2

3

4

5

"Dialogues with our employees

and stakeholders are firmly

anchored in our sustainability

strategy."

Dialogues with stakeholders for a

materiality analysis

Compliance with regulations,

norms and laws (orientation

towards the "honourable

businessman")

Partnerships and memberships in

important institutions and

associations

► CEWE's approach is based

on long-term business

success

Future economic viability: sustainable financial management

Financial management ensures that operational functions are

free of financial constraints

Added value from operative business and not from financial fine-tuning

Securing the long-term success of the Group

Financial resources provide considerable scope for decision-making

Decisions solely on the base of operative and strategic benefit

"CEWE thinks

decades"

Long-term security & strategic freedom

Sound debt financing: considerable proportion of long-term lines

Trustworthy, long-term banking relationships

Healthy mix of long-term and short-term loan periods

Sufficient amount of unused credit facilities

Strong balance: high capital ratio

Not dependent on the current financial market situation

Stability: no reduction in the capital ratio in order to increase returns

Page 53

2

Don't be afraid of investments, but have a sense of proportion and sound judgement

Ensuring major investments with investment calculations

Subsequently checking and assessing major investments

Financial margins permit the exploitation of special offers for long-term advantages

No speculative investment of available liquid resources

Investments

Investors with long-term perspectives are addressed

Active communication of long-term perspectives to investors

Targeted contacts to investors with a long-term focus

Investor relations

Cost-awareness

Cost-awareness typical for medium-sized companies at CEWE

Exploiting internal competences/resources

Check of various alternatives

Page 54

Future economic viability: sustainable financial management2

► CEWE combines the advantages of stock-exchange listed companies

and family enterprises

Less short-term quarterly mindset obliges

Focus on a few core areas ...

... in which the management is an expert

No principal-agent problems

mainly organic growth, only minor acquisitions

Sound financing

Transparent information policy

Focus on earnings

Large-scale investment in digital technology in

order to secure the future of the company

Photofinishing as the core area of business;

new area with positive synergies

Anchor persons in the management have shaped

the development of the industry for many years

Board of Management and Supervisory Board

with large share ownership

Only "digestible" acquisitions

Sound equity ratio

Comprehensive available credit lines

Comprehensive IR activities

Profit in each year of transformation

Advantages

+

+

+

+

+

+

Situation at CEWE

+

+

Fa

mil

y e

nte

rpri

se

Stock-

exchange

listed

company

Page 55

2 Future economic viability: Advantages of

family-run, stock-exchange listed companies

27.4%

0.8%Board of management and

remaining supervisory board

Joint heirs of company founder

(represented in supervisory board)

CEWE

shareholder

structure

► Environmental protection is an ongoing process at CEWE

"Our initiatives all have one goal: sustainable CO₂ reductions."

Save energy

Conserve resources

Recycling

Ecological product optimisations

Cooperation with nature conservation

associations (e.g. NABU, WWF)

Protecting resources and the environment

Page 56

3

"Our focus is on our employees and their families."

► CEWE has been distinguished for its family friendliness

Combining a career and a

family (CEWElino)

Diversity and equal

opportunities

Vocational and in-service

training

Employee-shareholder

Safety at work and health

protection

Employee participation and

satisfaction

Responsibility for employees

Page 57

4

"Acting responsibly on behalf of society and social commitment are part of

our self-conception."

► CEWE is firmly rooted in its social environment.

Promotion of young talent

Social commitment at all the

CEWE locations

Support for staff members

working in an honorary capacity

Cooperation with SOS children's

villages all over the world

Retaining the cultural asset of

photography

Social commitment

Page 58

5

11 cooperations with

Germany (Düsseldorf, Schwarzwald,

Ammersee, Worpswede)

Poland (Siedlce)

Hungary (Budapest)

Czech Republic (Medlanky)

Norway (Berge)

Austria (Moosburg)

France (Saint-Luce-sur-Loire)

Belgium (Cantevent)

1. In a nutshell


3. Sustainability


5. Results Q3 2017

6. Share

Agenda

Earnings before taxes (EBT)in Euro millions

Rounding differences might occur.

+28.5%

9.6

16.0

25.4

28.426.1 27.1

31.5

35.9

46.2

2008 2009 2010 2011 2012 2013 2014 2015 2016

► Consolidated result increases by 28.5% in 2016,

exceeding the target corridor

EBT target 2016:

39-45 Euro mill.

CEWE Group Targets Reached in 2016

► Corporate targets all reached or exceeded in 2016


Targets 2015 Target 2016 2016

Digital prints in bn prints 2.16 2.05 to 2.15 2.18

Prints from films in bn prints 0.07 0.050 to 0.055 0.06

Total prints in bn prints 2.23 2.10 to 2.21 2.23

CEWE photo books in m. books 6.0 6.10 to 6.15 6.2

Operative investments in EUR m. 39.3 51 49.8

Turnover in EUR m. 554.2 555 to 575 593.1

EBIT in EUR m. 36.4 40 to 46 47.0

EBT in EUR m. 35.9 39 to 45 46.2

Earnings after tax in EUR m. 22.5 29 to 33 30.4

Earnings per share in EUR/share 3.15 4.00 to 4.57 4.25

Page 61

Photos

Photos totalin millions

Digital photosin millions

Photos from filmsin millions


► From mass to class: the number of prints for the full year is even

slightly higher than expected; this is mainly driven by instant photos

from CEWE photo stations

-20.8% +0.6% -0.1%

Target 2016:

-29% to -22%

Target 2016:

-5% to -1%Target 2016:

-6% to -1%

2,461 2,367 2,293 2,235 2,232

2012 2013 2014 2015 2016

2,299 2,253 2,204 2,164 2,176

2012 2013 2014 2015 2016

162 114 89 71 56

2012 2013 2014 2015 2016

Page 62

+2.6%

CEWE PHOTOBOOK

Number of CEWE PHOTOBOOKSin thousands


► CEWE PHOTO BOOK continues to grow

► Growth in turnover exceeds growth in volume

5,581 5,7685,929 6,048

6,207

2012 2013 2014 2015 2016

Target 2016:

+1% to +2%

Page 63

2,461 2,367 2,293 2,235 2,232

2012 2013 2014 2015 2016

14.6015.86

16.8418.57

20.25

2012 2013 2014 2015 2016

359.2375.4 386.0

414.9452.0

2012 2013 2014 2015 2016

Value of Photos

► The growing proportion of added-value products sees turnover

per photo continuing to grow ... and hence also turnover in the

core business of photofinishing


+9.1%

-0.1%

+8.9%

Total printsin millions

Value per photoTurnover/photo [Euro cent/photo]

Turnover photofinishingin millions

Page 64

► Photofinishing exceeds expected turnover bandwidth

Turnover by Quarter - Photofinishing

Seasonal distribution: CEWE 2012 to 2016

Turnover by quarter in Euro millions

85.5

Euro mill.

Q1 Q2 Q3 Q4

Approx.407-427* turnover

target 2016

77.3 – 81.1

Euro mill.

81.1

Euro mill.

71.2 – 74.7

Euro mill.

95.4

Euro mill.

87.5 – 91.8

Euro mill.

171.0 – 179.4

Euro mill.

190.0

Euro mill.

*555-575 Euro million group turnover target less planned retail and online printing turnover

target

target

target

target

66.3 70.7 70.275.5

85.5

2012 2013 2014 2015 2016

72.3 71.0 70.4 72.681.1

2012 2013 2014 2015 2016

88.3 85.3 89.491.5 95.4

2012 2013 2014 2015 2016

132.5

148.5156.0

175.3190.0

2012 2013 2014 2015 2016

actual actual actual actual

Page 65

31.435.8

39.4 40.2

52.0

2012 2013 2014 2015 2016

Business segment Photofinishing

359.2 375.4386.0

414.9452.0

2012 2013 2014 2015 2016


.

Tu

rno

ver

EB

IT

+8.9% Added-value products (CEWE PHOTO BOOK,

CEWE CALENDAR, CEWE WALL PICTURES,

CEWE CARDS and photo gifts) and on-site

business support growth in turnover and

continue to more than compensate for the

decrease in the turnover as a result of declining

sales of individual lab prints

Photofinishing EBIT before one-time effects

at 52.8 m. euros (11.7 % of turnover;

previous year of 2015 before one-time

effects: 10.5 %, 43.4 million euros)+29.5%

EBIT 2012-2013 adjusted for other taxes.9.7% 11.5% of turnover

in Euro millions

2016 one-time effects: -0.8 m. euros

Goodwill on all. for depr.: -3.0 m. euros (UK + DeinDesign)

PPa effects: -4.0 m. euros (from DeinDesign acquisition)

Restructuring costs: -0.2 m. euros (DeinDesign Berlin)

Basic equipment for business partners: +2.1 m. euros

Smilebooks USA sales revenue: +0.4 m. euros

Disposal of the operation in Graudenz: +0.3 m. euros

2015 one-time effects: -3.2 million euros

Goodwill on all. for depr.: -2.6 m. euros (France + DeinDesign)

PPa effects: -0.2 m. euros (from DeinDesign acquisition)

Restructuring: -0.4 m. euros (Customer Service in Dresden)

► Core business of photofinishing continues to increase turnover and profits

Page 66

DACH63%

Western Europe

23%

Eastern Europe

7%

Scandic6%

Rest 2%

Operational EBIT margin in the business segment Photofinishing

► Profitability in core business of photofinishing continues

to increase: operative EBIT margin now at 11.7%

7.8%8.6% 9.0%

9.5%10.2% 10.5%

11.7%

2010 2011 2012 2013 2014 2015 2016

Page 67

* 38 to 44 Euro mill. group EBIT-target less planned retail and online printing EBIT

EBIT before Restructuring by Quarter - Photofinishing


EBIT before restructuring by quarter in Euro millions


Q1 Q2 Q3 Q4 37-43* Euro mill. EBIT-target 2016Photofinishing

+0.9 – +1.1

Euro mill.

-0.9 – -1.1

Euro mill.

+3.1 – +3.7

Euro mill.

1.2

Euro mill.

-0.5

Euro mill.

5.6

Euro mill.

+33.9 – +39.3

Euro mill.

45.9

Euro mill.

target

target

target

target

► Photofinishing exceeds expectations for 2016

-5.3-2.4 -2.7

-0.4

1.2

2012 2013 2014 2015 2016

8.4 7.64.6 3.8

5.6

2012 2013 2014 2015 2016

28.7

36.039.4 39.3

45.9

2012 2013 2014 2015 2016-0.4 -2.1 -1.9 -2.1 -0.5

2012 2013 2014 2015 2016

actualactual actual actual

Page 68

1.7

0.1

-2.9

-0.4

0.6

2012 2013 2014 2015 2016

Business segment Retail

in Euro millions

105.0 101.0

67.360.8

54.9

2012 2013 2014 2015 2016

-9.7%

Tu

rno

ver*

EB

IT*

Re-positioning and price strategy

with higher margins takes effect:

Retailing EBIT positive again for the

first time after years of losses

-0.7% +1.1% of turnoverRounding differences might occur.

* Only hardware, no photofinishing

► Re-positioning taking effect, retailing escapes

loss situation of the previous year

Fundamentally negative situation

on the market for photo hardware

and re-positioning of retailing with

the new price strategy (away from

lowest prices with low margins)

further reduces turnover

Page 69

Business segment Commercial Online-Print

in Euro millions

43.0

59.8

70.5

77.884.0

2012 2013 2014 2015 2016

+7.9%

-4.8-7.0

-2.9

-0.9

1.6

2012 2013 2014 2015 2016

Tu

rno

ver

EB

IT

Commercial online printing achieves

the 2016 annual target –

intentionally vaguely indicated – in

the amount of "around 86 m. euros"

in spite of weak Q4 growth


Operative EBIT before PPA effects

(1.7 m. euros) even as high as +3.3

m. euros (3.9% of turnover)

COP thus clearly achieves its profit

targetgoodwill-depreciation

-2.7

-4.3

-1.2% +1.9% of turnover

► Commercial online printing clearly achieves annual target of "positive EBIT"

Page 70

0.6

2.2

2012 2013 2014 2015 2016


+251%

-1.0

-2.4

-7.2

2012 2013 2014 2015 2016

Tu

rno

ver

EB

ITBusiness Segment Other Structural and corporate costs and profits arising from real

estate property and the acquisition of stocks are shown in

the "other" business segment.

Since August 2015 (date of initial consolidation), futalis has

been reported in this business segment since the business

activities cannot be allocated to the other business

segments.

► "Other" business segment significantly weaker than in the

previous year due to a depreciation in futalis goodwill

The 2.2 m. euro in reported turnover is to be

exclusively allocated to futalis (2015: 0.6 m.

euros for the period from August to

December)

EBIT classification: Structural/corporate costs: -1.8 m. euros

Real estate: +0.1 m. euros

futalis operative EBIT: -1.1 m. euros

futalis goodwill depreciation: -3.9 m. euros

PPA effects from futalis acquisition: -0.5 m.

eurosPrevious year includes only five months futalis business. (futalis-full year 2015: turnover 1,3 Euro mill., EBIT -1,1 Euro mill.)

in Euro millions

Page 71

132.4148.5 156.0

175.3190.0

14.4

18.220.5

22.8

23.1

30.5

24.518.3

17.314.70.40.6

2012 2013 2014 2015 2016

228.5

194.8191.2

215.8

177.3

Revenue

Q4 in Euro millions

+5.9%

real: +6.4%


Commercial

online printing:

+1.6%

(real: +3.7%)

Photofinishing:

+8.4% (real: +8.8%)

Q1-4in Euro millions

+7.0%

real: +7.9%

Commercial

online printing:

+7.9% (real: +9.2%)

Photofinishing:

+8.9% (real: +9.4%)

► Photofinishing and commercial online printing

contribute to growth in turnover in the Group

Retailing:

-9.7% (real: -6.9%)

Retailing:

-15.0% (real: -15.7%)

359.2 375.4386.0

414.9452.0

43.0

59.870.5

77.8

84.0

105.0

101.0 67.3

60.8

54.9

2.2

2012 2013 2014 2015 2016

593.1

536.2507.2

523.8

554.2

Other

Other

Turnover-target 2016:

555-575 Euro mill.

Photofinishing (PF)

Retailing (R)

Commercial Online-Print (COP)

Other (O)

Page 72


EBIT Q1-4in Euro millions

Photofinishing (PF)

Retailing (R)

Commercial Online-Print (COP)

Other (O)

EBIT Q4in Euro millions

+29.2%

Operative result EBIT

+5.3%

EBIT-target 2016:

40-46 Euro mill.

28.7

36.039.4 39.3

45.9

-1.3

-3.7

1.6

1.1

1.5

1.3-1.5

0.9

1.0

-5.0

2012 2013 2014 2015 2016

COP -0.3 O -0.3

O -1.1

42.940.8

37.3

33.6

28.9

31.4

35.839.4 40.2

52.0

-4.8-7.0

-2.9

-0,9

1.6

1.7

-2.9-1.0 -2.4

-7.2

2012 2013 2014 2015 2016

R +0.1

R -0.4

R +0.6

47.0

36.4

32.6

28.928.3

► Core business segments (PF, R, COP)

all contribute to better profits

Page 73


Q4 Q1-4

EBIT-Margin [%]

16.3 17.619.2 18.9

21.4

2012 2013 2014 2015 2016

5.6 5.4 6.2 6.69.1

2012 2013 2014 2015 2016

18.8

Effect resulting from

goodwill-depreciation

7.9


goodwill-depreciation

► Ongoing changes in the photofinishing product mix, first-time renewed

positive results in retailing, and commercial online printing resulted in a

continued rise in the EBIT margin (before goodwill allowance for

depreciation)

Page 74

Earnings after tax


Earnings after taxin Euro millions

Tax quotain %

► More than anything else, goodwill depreciation

increases the reported tax rate for 2016


change in legal form

+35.2%

18.6 18.8

22.3

21.422.5

30.4

2011 2012 2013 2014 2015 2016

-34.6%

-27.8% -29.8% -32.1%

-37.4%-34.3%

2011 2012 2013 2014 2015 2016

-33.0%

3.3

Effect resulting from goodwill depreciation and

start-up initial losses with no effect on taxes



19.0

Effect resulting from goodwill depreciation and

start-up initial losses with no effect on taxes

Page 75

-32.4%

-17.7%

2.02

2.84 2.87

3.36

3.073.24

4.23

2010 2011 2012 2013 2014 2015 2016

Earnings per sharein Euro




0.50

2.86

+34.3%

► Earnings per share increased and target for 2016 achieved

Target 2016:

4.00 Euro to 4.57 Euro

Page 76


143.2162.1

138.1 140.9 147.0

50.029.0

27.8 29.529.1

132.2 142.8 173.6187.0

204.9

2012 2013 2014 2015 2016

357.3

381.0

325.4333.9 339.7

157.9 171.8 171.9173.3

192.4

167.5162.0 167.8

184.1

188.6

2012 2013 2014 2015 2016

357.3

381.0

325.4333.9 339.7

Long-

term

assets

Short-

term

assets

Assetsin Euro millions

Liabilitiesin Euro millions

Equity

Long-term

debts

Short-term

debts

► Growth in earnings sees equity ratio continuing to increase: 53.8%

► Golden rule of accounting observed: long-term assets are financed long-term

= 53.8%

equity

ratio

Balance Sheet data at 31 December

Page 77

Cash

9.521.9

7.6 15.613.4

14.027.7

21.7 48.6

165.6

162.0 167.8

184.1

188.6

2012 2013 2014 2015 2016

197.9203.1

221.3

234.2

-2.9

188.5

Management-Balance Sheet data at 31 December

Capital Employedin Euro millions

Capital Investedin Euro millions

26.5 24.8 25.2 27.7 29.1

31.5 30.3

4.2 6.70.2

130.5 142.8

173.6

187.0 204.9

2012 2013 2014 2015 2016

188.5

234.2

197.9203.0

221.3

Long- term

assets

Net

Working

Capital

Equity

Financial debt

(gross)

Non operational

debt

► Operative net working capital decreases due to decline in

receivables and business-related increase in trade receivables

► Other net working capital even contributes to financing


Page 78

► Operative result and working capital increase cash flow from

operative business to 93 m. euros

► Reduced out flow of funds from investment activities also

improving free cash flow

Free Cash Flow

Outflow of funds from

investment activities

in Euro millions

Free Cash Flow

in Euro millions


Cash Flow from

operative business

in Euro millions

-45.8

-35.1

-43.1

-55.2

-46.6

2012 2013 2014 2015 2016

5.5

13.1

28.1

4.4

46.4

2012 2013 2014 2015 2016

51.448.3

71.2

59.6

93.0

2012 2013 2014 2015 2016

+954%

+15.6%

+56.0%

+ =

Page 79

ROCE

12-months-EBIT

in Euro millions

Average capital employed

in the past 4 quarters

in Euro millions

ROCE*

in %

194.7 192.9 194.0

211.9220.8

2012 2013 2014 2015 2016

28.3 28.9

32.6

36.4

47.0

2012 2013 2014 2015 2016

14.5% 15.0%

16.8% 17.2%

21.3%

2012 2013 2014 2015 2016

► Development in earnings increases ROCE to 21.3%

► ROCE far exceeds WACC**: CEWE creates value

÷ =


Page 80

* Return On Capital Employed

** Weighted Average Cost of Capital

28.3 28.9 32.6 36.447.0

2012 2013 2014 2015 2016

18.8 22.3 21.4 22.5 30.4

2012 2013 2014 2015 2016

28.3 28.9 32.6 36.447.0

2012 2013 2014 2015 2016

21.0 24.2 22.5 22.9 31.2

2012 2013 2014 2015 2016

298.2 295.8 292.5 308.9323.7

2012 2013 2014 2015 2016

115.0 122.5152.3 169.4

185.0

2012 2013 2014 2015 2016

194.7 192.9 194.0211.9 220.8

2012 2013 2014 2015 2016

194.7 192.9 194.0211.9 220.8

2012 2013 2014 2015 2016

Page 81

9.5% 9.8%11.1% 11.8%

14.5%

2012 2013 2014 2015 2016

16.4%18.2%

14.1% 13.3%

16.4%

2012 2013 2014 2015 2016

14.5% 15.0%16.8% 17.2%

21.3%

2012 2013 2014 2015 2016

10.8%12.5% 11.6% 10.8%

14.1%

2012 2013 2014 2015 2016

=Return on Capital

Employed

(ROCE)

=Return on

Equity

(ROE)

=Return on Capital

Employed after tax

(Nachsteuer-ROCE)

=Return on

Capital

(ROC)

in EUR millions

Return on Capital (1/2)

EBIT

Balance sheet total

EBIT

Capital Employedonly interest bearing

capital

NOPAT

Capital Employed

Earnings after tax

Equityonly equity

only for equity investorsoperational

after tax


31.04

42.75

51.51 54.61

84.57

2012 2013 2014 2015 2016

31.04

42.75

51.51 54.61

84.57

2012 2013 2014 2015 2016

115.0 122.5152.3 169.4

185.0

2012 2013 2014 2015 2016

4.7%3.5% 3.0% 2.9%

2.1%

2012 2013 2014 2015 2016

9.3%7.9%

6.0% 5.8%5.0%

2012 2013 2014 2015 2016

16.4%18.2%

14.1% 13.3%

16.4%

2012 2013 2014 2015 2016

18.8 22.3 21.4 22.5 30.4

2012 2013 2014 2015 2016

2.88 3.39 3.08 3.154.25

2012 2013 2014 2015 2016

1.45 1.50 1.55 1.60 1.80

2012 2013 2014 2015 2016

Page 82

= ==

in EUR millions in EUR in EUR

Return on Capital (2/2)

Earnings per share

Share price

Dividend

Share price…Earnings after tax

Equity

per share without

retained earnings

market value instead

of book value

Yield on shares Dividend yieldReturn on

Equity

(ROE)


1. In a nutshell


3. Sustainability


5. Results Q3 2017

6. Share

Agenda

► Also Q3 confirms the annual targets for 2017

Highlights Q3 2017 Q3 2016 Q3 2017 Comment

Photofinishing

Sales Volume

Turnover

EBIT

EBIT w/o one-offs

in photo m.

in EUR m.529

95.4

5.6

3.6

532

96.3

4.1

4.2

At 0.6% higher than 2016, volume is in line with annual target

Added-value products drive increase in turnover and profitability

Special items in previous Q3 2016: initial supply for business

partners (1.8 EUR m.) and sale of property in Poland (0.3 EUR m.)


Turnover

EBIT

EBIT w/o one-offs

in EUR m. 19.7

-0.3

0.1

20.2

0.4

0.5

Online-printing turnover up by only 2.6% due to still weak UK

business (Brexit)

EBIT operationally up by +0.4 EUR m.

Retail

Turnover

EBIT

in EUR m. 12.9

0.0

13.0

-0.1

Focus on profitability and photofinishing successful

EBIT on already improved previous year’s level

Other

Turnover

EBIT

in EUR m. 0.6

-0.8

0.8

-0.9

Segment “Other” covers administrative costs for company

structure, supervisory board costs, IR costs, real estate, futalis

Group

Turnover

EBIT

EBIT w/o one-offs

in EUR m. 128.6

4.5

3.1

130.3

3.6

4.0

Group turnover up by 1.3% supported by all business segments

Reported EBIT below previous year’s level due to last year’s

special items

Free Cash Flow in EUR m. -1.9 -36.8 Higher outflow of funds from investment activities (“Saxopark”-

property in Dresden) decreases free cash flow

ROCE % 20.6 19.3 ROCE remains on strong level

Equity ratio % 57.1 57.0 Solid equity ratio

Rounding differences may occur.

3.8 4.1 3.2

25.628.9

33.637.3

40.8

42.9

-0.6-4.6 -4.8 -4.4

2011 2012 2013 2014 2015 2016 e2017

Distribution of profits Q1-3 vs. Q4Group-EBIT in Euro millions

Page 85

EBIT contribution of Q1-3 and Q4

Rounding errors may result

Q4 increase in

EBIT required to

reach the annual

target

EBIT-growth Q4in Euro millions

(for upper limit)

(for lower limit)

target-

area

45-51

41.8

to

47.8

EBIT LTM as of Sept.

2017: 46.1 Euro millions

► Even a decline in the Q4 profit would be sufficient

to reach the target corridor

-1.1

3.4

4.7

3.7 3.4

2.2

4.9

2012 2013 2014 2015 2016 e2017

619 597557

529 532

2013 2014 2015 2016 2017

580 567534 509 516

2013 2014 2015 2016 2017

Photos Q3

39 30 23 19 16

2013 2014 2015 2016 2017


Digital photosin millions


-16.8%

Page 86

1.3% 0.6%

► Q3 volume slightly better than expected range

► Increase is driven by On-Site Finishing and CEWE PHOTOBOOKS

target 2017:

-5% to 0%target 2017:

-29 to -20%

target 2017:

-4% to 0%

1,5871,529

1,459 1,4531,394

2013 2014 2015 2016 2017

1,494 1,4581,403 1,408 1,356

2013 2014 2015 2016 2017

Photos Q1-3

92 71 56 45 37

2013 2014 2015 2016 2017

-16.6%

► Q1-3 volume in expected range, especially given the seasonal shift

continuously strengthening Q4

-3.7% -4.1%



Digital photosin millions target 2017:

-5% to 0%

target 2017:

-29 to -20%

target 2017:

-4% to 0%

Page 87

3,544

3,673 3,663

3,832

3,640

2013 2014 2015 2016 2017

1,349

1,4131,383

1,357 1,361

2013 2014 2015 2016 2017

Page 88

CEWE PHOTOBOOK

Number of CEWE PHOTOBOOKS Q3

in thousands

+0.3%

► CEWE PHOTOBOOK increases volume in Q3

Number of CEWE PHOTOBOOKS Q1-3

in thousands

-5.0%

Target 2017:

-3% to +1%

Rounding differences may occur

Target 2017:

-3% to +1%

20.5% 20.5% 20.8%21.6%

20.5%

2013 2014 2015 2016 e2017

20.3% 20.2% 19.6% 19.8% 19.5%

2013 2014 2015 2016 e2017

26.1% 26.0%24.9%

23.6% 23.0%

2013 2014 2015 2016 e2017

33.0% 33.3%34.7% 34.9%

2013 2014 2015 2016 e2017

Saisonal distribution: CEWE 2013 to 2017

Total share of photos per quarter as a percentage

Photos Total by Quarter

► Photofinishing

volume meets

expected range

0.435-0.457

billion

437.6

million

Q1 Q2 Q3 Q4

2.12 – 2.23 billion photos

2017

actual424.2

million

0.413-0.435

billion

actual

target target


0.488-0.513

billion

actual531.7

million

target

Page 89

13.7814.98

16.42

17.51

18.11

2013 2014 2015 2016 2017


619 597557

529 532

2013 2014 2015 2016 2017

Total printsin Euro millions

Value of Photos Q3

+0.6% 85.389.4 91.5

95.4 96.3

2013 2014 2015 2016 2017

Turnover Photofinishing Q3*in Euro millions

*turnover since 2013 adjusted


► Continuous increase of turnover per photo in Q3

driven by value added-products

+3.4%

18.05

Effect from initial supply for

business partners

Turnover from initial supply for

business partners

Page 90

1,587 1,5291,459 1,453 1,394

2013 2014 2015 2016 2017

Total printsin Euro millions

14.30 15.0416.42

18.0418.94

17.80

2013 2014 2015 2016 2017


Value of Photos Q1-3

► Continuous increase of turnover per photo in Q1-Q3

driven by value added-products

-4.1%

227.0 230.0 239.6262.0 264.0

2013 2014 2015 2016 2017

Turnover photofinishingQ1-Q3* in Euro millions

*turnover since 2013 adjusted


+6.4%

Effect from initial supply for

business partnersTurnover from initial supply for

business partners

Page 91

18.8% 18.2% 18.2% 18.9% 18.5%

2013 2014 2015 2016 e2017

39.6% 40.4%42.2% 42.0%

2013 2014 2015 2016 e2017

22.7% 23.2% 22.1%21.1% 20.5%

2013 2014 2015 2016 e2017

18.9% 18.2% 17.5% 18.0% 18.0%

2013 2014 2015 2016 e2017

Shares in Turnover by Quarter - Photofinishing


Share in turnover by quarter as a percentage

► Photofinishing

turnover in

expected range

► Annual target

confirmed

85.6

Euro mill.

Q1 Q2 Q3 Q4Approx.

443-473€* turnover

target 2017

82.0-87.6

Euro mill.target

82.1

Euro mill.

79.7-85.2

Euro mill.target

96.3

Euro mill.

90.8-97.0

Euro mill.target

actual

* Photofinishing turnover approx. on previous year´s level (2015: 415.0 Euro mill.)


actual actual

Page 92

Tu

rno

ver

EB

ITPhotofinishing Segment in Q3

in Euro millions


7.6 4.6 3.8 5.6 4.1

2013 2014 2015 2016 2017

85.389.4 91.5

95.4 96.3

2013 2014 2015 2016 2017

+0.9%

-26.8%

5.9% 4.3% of turnover

Growth generated by all significant product

groups: CEWE PHOTOBOOK, CEWE

CALENDAR, CEWE WALL PICTURES and

other photo gifts

Trend towards these "brand added-value

products" slightly increases photofinishing

sales overall

► Q3 turnover above strong previous year

Positive one-off effects affected EBIT in the

previous year

Operative EBIT at 4.2 m. euros before one-

off effects, and thus above that of the

previous year (adjusted operative EBIT for

Q3 2016: 3.6 m. euros); however, in the

previous year also expenses for the

presentation at the Photokina

Q3 2017 one-off effects: -0.1 m. euros

PPA effects: -0.1 m. euros (from DeinDesign acquisition)

Q3 2016 one-off effects: +2.0 m. euros

Sale of property in Graudenz (PL): +0.3 m. euros



Q1 Q2 Q3 Q4

45.2-51.2 Euro mill.* EBIT-target 2017Photofinishing

EBIT

-5.3% -4.9% -5.1%-0.9% -1.0%

2013 2014 2015 2016 e2017

-6.2%-6.8%

-0.9%

2.3%2.6%

2013 2014 2015 2016 e2017

EBIT before Restructuring by Quarter – Photofinishing


EBIT share by quarter as a percentage

19.4%

11.7%9.3% 10.7%

8.5%

2013 2014 2015 2016 e2017

92.1%

100.1% 96.8%87.9%

2013 2014 2015 2016 e2017


EBIT 2013: EBIT adjusted to other tax

*45.0-51.0 Euro mill. group EBIT-target less planned retail, online printing and from segment Others

1.18 – 1.33

Euro mill.

target

1.349

Euro mill.

actual

► Photo-

finishing

EBIT slightly

above

expected

range

-0.45 – -0.51

Euro mill.

target

0.216

Euro mill.actual

3.84 – 4.35

Euro mill.

target

4.106

Euro mill.actual

Page 94

Tu

rno

ver

EB

ITPhotofinishing Segment in Q1-3

in Euro millions


-0.2 0.0

0.8

6.1 5.7

2013 2014 2015 2016 2017

227.0 230.0239.6

262.0 264.0

2013 2014 2015 2016 2017

2.3% 2.1% of turnover

-7.2%

+0.8%

► Q1-3 confirms strong EBIT-

level of the previous year

In the period of Q1-3, growth, in particular with

photo gifts and CEWE CALENDARS, offsets

the decline in sales of the CEWE PHOTOBOOK

Trend towards these "brand added-value

products" slightly increases photofinishing sales

overall

Strong level in previous year thus confirmed

Reported EBIT even almost operatively offsets

the positive one-off effects of the previous year

Operative EBIT at 5.5 m. euros before one-off

effects, and thus above the strong level of the

previous year (adjusted operative EBIT for Q1-

3 2016: 4.7 m. euros)

Q1-3 2017 one-off effects: +0.1 m. euros


Sales revenue from property in Denmark +0.5 m. euros

Q1-3 2016 one-off effects: +1.4 m. euros

Sale of property in Graudenz (PL): +0.3 m.euros



DeinDesign restructuring: -0.2 m. euros

Goodwill reduction UK (due to Brexit): -0.9 m. euros

Smilebooks USA sales revenue: 0.4 m. euros


Commercial Online-Print Segment in Q3Tu

rno

ver

EB

IT

14.416.1

18.719.7 20.2

2013 2014 2015 2016 2017

+2.6%

-1.3-0.7

-0.4 -0.3

0.4

2013 2014 2015 2016 2017

-1.6% +2.0% of turnover

2017 Q3 with renewed slight increase

in revenue

In spite of one-year Brexit decision in

July, UK business is still mainly

marked by currency losses and drops

in demand

Without these 2 effects, COP shows

an increase of around 3 to 4% over

the same period of the previous year

► Commercial online printing grows in Q3 in spite

of ongoing Brexit-induced declines in the UK

Q3 EBIT better than previous year

by 0.7 m euros: 0.4 m. euros (2016

Q3: -0.3 m. euros)

0.3 m. euros of this improvement

result from less PPA-effects than in

the previous year (Saxoprint

purchase price allocation)


in Euro millions

Commercial Online-Print Segment in Q1-3Tu

rno

ver

EB

IT

41.6

50.0

55.0

60.8 60.7

2013 2014 2015 2016 2017

-0.2%

-3.2 -2.6 -2.5

0.5 0.2

2013 2014 2015 2016 2017

+0.8% +0.4% of turnover

-55.8%

2017 Q1-3 with a decline in turnover in

the UK, also due to Brexit-induced

currency losses and drops in demand

Without the UK Brexit effect, COP

shows a slight increase of around 1 to

2% against the same period of the

previous year

► Commercial online printing struggles with Brexit-induced

declines in the UK in the first nine months of 2017

Weaker sales than planned see

earnings drop against those of the

previous year

Earnings supported by reduced PPA

effects from the Saxoprint purchase

price allocation of -0.5 m. euros

(2016 Q1-3: -1.3 m. euros)

14.5

Page 98

in Euro millions

Retail* Segment in Q3


Tu

rno

ver*

EB

IT*


24.3

16.315.1

12.9 13.0

2013 2014 2015 2016 2017

-0.3 -0.4-0.1

0.0

-0.1

2013 2014 2015 2016 2017

+0.2% -0.5% of turnover

+0.5%

Decline in turnover due to a generally

more difficult market situation for photo

hardware and re-positioning of retailing

(new hardware price strategy and focus

on photofinishing products) appears to

be bottoming out: turnover in Q3

consistent with previous year

Repositioning, particularly of business

in Poland, continues to pay off: CEWE

RETAIL continues with earnings

improved over previous loss-

generating years

Good starting point for the important

fourth (Christmas) quarter

► Re-positioning of retailing successful

27.3

Page 99

in Euro millions

Retail* Segment in Q1-3


Tu

rno

ver*

EB

IT*


-1.2 -1.5 -1.4

-0.4 -0.4

2013 2014 2015 2016 2017

76.5

49.043.5

40.2 38.0

2013 2014 2015 2016 2017

-5.5%

-0.9% -1.2% of turnover

Fundamentally difficult situation on the

market for photo hardware and re-

positioning of retailing with the new price

strategy (away from lowest prices with

low margins) and focus on

photofinishing products reduces

hardware turnover

Repositioning, particularly of business

in Poland, continues to pay off: CEWE

RETAIL continues with earnings

improved over previous loss-

generating years

Good starting point for the important

fourth (Christmas) quarter

► Re-positioning of retailing successful


Tu

rno

ver

EB

ITBusiness Segment Other in Q3 Structural and corporate costs and profits arising from real


the “Other" business segment.




segments.

in Euro millions

0.20.6

0.8

2013 2014 2015 2016 2017

+34.6%

-0.5 -0.6 -0.8 -0.9

2013 2014 2015 2016 2017

► "Other" business segment almost the same as in the previous year

The 0.8 m. euro in reported turnover

exclusively allocated to futalis (Q3 2016: 0.6 m.

euros)

EBIT due to slightly higher structural/corporate

costs in Q3 nearly on level of previous year


Tu

rno

ver

EB

ITBusiness Segment Other in Q1-3 Structural and corporate costs and profits arising from real


the “Other" business segment.




segments.

in Euro millions

0.2

1.5

2.2

2013 2014 2015 2016 2017

+42.6%

-0.7-1.3

-2.2 -2.3

2013 2014 2015 2016 2017

► "Other" business segment almost the same as in the previous year

The 2.2 m. euro in reported turnover

exclusively allocated to futalis (2016 Q1-3:

1.5 million euros)

EBIT contribution nearly on previous year’s

level

Photofinishing (PF)

Commercial

Online-Print (COD)

Retail (RT)

Other

Turnover

Q3in Euro millions


Q1-3in Euro millions

85.3 89.4 91.595.4 96.3

14.416.1 18.7

19.7 20.224.3 16.3

15.1 12.913.00.2

0.6 0.8

2013 2014 2015 2016 2017

125.5121.8124.0

130.3128.6

+1.3%

fx-adj.: +1.3%

227.0 230.0 239.6262.0 264.0

41.650.0

55.0

60.8 60.7

76.549.0

43.5

40.2 38.00.2

1.5 2.2

2013 2014 2015 2016 2017

329.0345.0

364.9364.6

338.4

+0.1%

fx-adj.: +0.0%

RT: +0.5%

(fx-adj.: -0.4%)

PF: +0.9%

(fx-adj.: +1.0%)

COD: +2.6%

(fx-adj.: +3.1%)

Other

RT: -5.5%

(fx-adj.: -6.9%)

PF: +0.8%

(fx-adj.: +0.8%)

COD: -0.2%

(fx-adj.: +0.4%)

Other

► All three business segments contribute

to increase in turnover in Q3

Photofinishing (PF)

Commercial

Online-Print (COD)

Retail (RT)

Other

EBIT Q3 after restructuringin Euro millions

EBIT Q3 before restructuringin Euro millions

EBIT Q3


0,4

7.6

4.6

3.8

5.6

4.1

-1.3

-0.7

-0.4

-0.30.4

-0.3

-0.4 -0.1

-0.5

-0.6

-0.8

-0.9

2013 2014 2015 2016 2017

RT -0.1

RT 0.0

3.6

6.0

3.0

4.5

2.7

0,4

7.6

4.6

3.8

5.6

4.1

-1.3

-0.7

-0.4

-0.30.4

-0.3

-0.4 -0.1

-0.5

-0.6

-0.8

-0.9

2013 2014 2015 2016 2017

RT -0.1

RT 0.0

3.6

6.0

3.0

4.5

2.7

► Commercial Online-Print contributes

positively to earnings in Q3

Photofinishing (PF)

Commercial

Online-Print (COD)

Retail (RT)

Other

EBIT Q1-3 after restructuringin Euro millions

EBIT Q1-3 before restructuringin Euro millions

EBIT Q1-3


0,4

3.1

1.3

6.35.7

-3.2-2.6 -2.5

0.5

0.2

-1.2-1.5

-0.8

-0.4

-0.7-1.3

-2.2

-2.3

2013 2014 2015 2016 2017

PF -0.0

3.2

-1.4

-4.8

-3.4

4.3

-0.4

0.9

6.15.7

-3.2-2.6 -2.5

0.5

0.2

-1.2

-1.5 -1.4

-0.4

-0.7 -1.3

-2.2

-2.3

2013 2014 2015 2016 2017

PF -0.0

-0.4

3.2

4.1

-4.4

-4.8-4.6

PF -0.2

► Decline in Group EBIT distorted by one-off effects

► Without one-off effects decline only at 0.4 million euros

123.2106.4 109.4 99.0

116.7

53.3

27.038.4

33.5

30.8

115.3

149.8

160.7176.1

195.4

2013 2014 2015 2016 2017

308.6

342.9

291.8 283.2

308.4

Page 105


Short-

term

assets

Long-

term

assets

Balance Sheet as of September 30

Assets Liabilities

Equity

Long-term

debts

Short-term

debts

in Euro millions in Euro millions

= 57.0%

equity

ratio

126.4 119.4 118.6 119.5 124.1

165.4163.8

189.9 189.1

218.8

2013 2014 2015 2016 2017

308.6

342.9

291.8283.2

308.4

= 57.1%

equity

ratio

► Long-term assets increase due to Saxopark acquisition

► Repayment from strong end-of-year cash at end of 2017

► Stable capital ratio thanks to increase in earnings

From Balance Sheet to management achievements

Balance Sheet


Long-term assets

Short-term

assets

Equity

Long-term

liabilities

Short-term

debts

Management Balance Sheet

Long-term assets

Working capital

Equity

Gross financial

liabilities

Non-operating

liabilities

Short-term operative debts/

non-interest-bearing liabilities: 86.4 m. euros

Balance Sheet total: 342.9 m. euros

Balance Sheet total: 256.5 m. euros

► The Balance Sheet total is reduced to capital elements "to be paid for"

(by way of dividends or interest) in the management balance sheet

Page 106

Liquidity

Management-Balance Sheet as of September 30

Capital Employed

in Euro millions

Capital Invested

in Euro millions

Net

Working

Capital

Gross

financial

debt

Non

operational

debt


Long-

term

assets Equity

2013 2014 2015 2016 2017

220.5

256.5

195.8 194.7

222.1

84.5% 85.3%84.1% 85.5% 85.8%

9.4%11.5% 9.7% 9.9% 7.3%

4.6% 5.3%4.0% 6.2% 7.0%

2013 2014 2015 2016 2017

220.5

256.5

195.8 194.7

222.1

15.2%12.7%13.8% 12.3% 11.9%

79.9%72.4%76.9%58.9%76.2%

11.9%

27.3%

10.8%

14.9%4.9%

► Net working capital slightly increased

► Saxopark acquisition increases long-term assets and gross

financial debts – thus increasing invested capital by 27.9 m. euros

Free Cash Flow Q3



in Euro millions

Free Cash Flow

in Euro millionsCash Flow from

operative business

in Euro millions


-11.4-14.0

-21.2

-11.4

-42.2

2013 2014 2015 2016 2017

-1.2-3.4

-14.4

-1.9

-36.8

2013 2014 2015 2016 2017

10.2 10.6

6.89.5

5.4

2013 2014 2015 2016 2017

-270%

-43.8%

► In addition to a one-off tax refund of 2 million euros in 2016, advance tax payments and tax

payments for previous years in particular see operative cash flow decreasing

► Without the acquisition of Saxopark in Dresden (27.9 m. euros), the outflow of funds from

investment activities would be approx. equivalent to the previous year

Free Cash Flow Q1-3



in Euro millions

Free Cash Flow

in Euro millionsCash Flow from

operative business

in Euro millions


-24.4-26.9

-44.1

-30.9

-57.0

2013 2014 2015 2016 2107

-17.3

-4.1

-33.5

2.4

-52.2

2013 2014 2015 2016 2017

7.1

22.8

10.5

33.4

4.8

2013 2014 2015 2016 2017

-84.1%

-85.7%

► Advance retail partner payments (11.0 m. euros already paid at the end of 2016), sales-driven

increase in downstream conditions for retail partners (7.9 m. euros) and increase in tax

payments (11.4 m. euros) reduce operative cash flow

► Investment in Saxopark Dresden (-27.9 m. euros) increases outflow of funds from investment

activities

► Free cash flow correspondingly declines to -52.2 m. euros

÷ =

* ROCE = EBIT / Capital Employed

12 months EBIT

in Euro millions

Average capital employed

in the past 4 quarters

in Euro millions

ROCE*

in %

ROCE as of September 30


191.0 192.7

207.4217.7

238.3

2013 2014 2015 2016 2017

24.3

28.8

33.0

44.846.1

2013 2014 2015 2016 2017

12.7%

15.0%15.9%

20.6%

19.3%

2013 2014 2015 2016 2017

► Increase in capital employed sees ROCE decline slightly to 19.3%

in spite of increased 12-month EBIT

1. In a nutshell


3. Sustainability


5. Results Q3 2017

6. Share

Agenda

Key share indicators

Market segment regulated market

Prime Standard

Index SDAX

DAXplus Family 30

ISIN DE 0005403901

Symbol CWC

Reuters CWCG.DE

Bloomberg CWC GR

Date of initial listing March 24, 1993

Number of shares 7,400,020

Share data

Page 112

Analysts

CEWE Stiftung & Co. KGaA

ISIN DE0005403901, WKN 540390, CWC

► Broad analyst coverage

27.4%

0.8%

69.7%

2.1%

Shareholder structure

► Joint heirs of company founder are the main shareholders in CEWE

► 28.2% of the shares are present in the Supervisory Board and the

Board of Management

27.4% ACN Vermögensverwaltungs-

gesellschaft mbH & Co. KG

(joint heirs of Heinz Neumüller)

0.8% CEWE Board of Managementand Supervisory Board

1.9% CEWE Stiftung & Co. KGaA

69.9% Other shareholders

70.7% Free Float (acc. to Deutsche Börse)

In acc. with § 21 and § 22 WpHG notification

28.2%

7.4 million

shares

Page 113

Trading volume CEWE share

Page 114

► CEWE share is traded with an average of more

than 1.7 EUR million turnover per day in 2016

Average trading volume 2016in shares per day

Average 2016:

27,139

shares per day

Darkpools

8,411 (31%)

Xetra and other

German

stock exchanges

18,728 (69%)

Dividend

► Dividend for the 2016 business year is to increase to 1.80 euros

► Since analogue/digital transformation: eighth consecutive dividend increase

Dividend in Euro

1.00 1.051.25

1.40 1.45 1.501.55 1.60

1.80

2008 2009 2010 2011 2012 2013 2014 2015 2016

Page 115

Harmonious Transformation to a Limited Joint-Stock Partnership

► Effective cooperation between shareholders and the foundation is continued as

before – but as a new, ultimately beneficial legal form in terms of taxes

General

Partnership

PLC Foundation

Public limited company/

stock corporation

is and remains

… a gateway to capital

markets

… the advocate of a

permanent focus on

returns on capital

employed and on

profitability

Foundation

is and remains

… the managing body (in

accordance with the intention

of the founder)

… the advocate of a long-term

mindset

Limited Joint-

Stock

Partnership

Shareholders Foundation

since 2013

Page 116

until 2013

Dr. Christian Friege: CEO as of 1 July 2017

Page 117

Professional training and career

1993 MBA, Mannheim University

1995 Dr. rer. pol., University of Eichstätt/Ingolstadt

1995 to 2004 Bertelsmann AG, including 1998 to 2000

Member of Doubleday Direct Management,

Garden City, NY, USA and 2000 to 2004

Managing Director, British Book Club

in London, UK

2005 to 2006 Member of the Board of Management of

debitel AG, Stuttgart

2008 to 2012 Chairman of the Board of Management of

LichtBlick AG, Hamburg

2012 to 2015 Independent Management Consultant

since 2015 CEWE Stiftung & Co. KGaA

since 2016 Member of the Board of Management of the

Neumüller CEWE COLOR Foundation

as of 1 July 2017 Chairman of the Board of Management of the

Neumüller CEWE COLOR Foundation

This presentation contains forward-looking statements that are based on

current assumptions and forecasts of the management of CEWE. Known and

unknown risks, uncertainties and other factors could lead to material

differences between the forward-looking statements given here and the

actual development, in particular the results, financial situation and

performance of our Company. The Company assumes no liability to update

these forward-looking statements or to conform them to future events or

developments.

All numbers are calculated as exactly as possible and rounded for the

presentation. Due to this, rounding errors might occur.

Available in the App Stores: the CEWE Investor Relations app

for an iPad® or android tablet, with annual reports and quarterly

reports, presentations and sustainability reports.

cewe company presentationir.cewe.de/download/companies/cewe/companypresentation/c... · 12...

Documents