CEWE STIFTUNG & CO. KGAA (FRA:CWC) CEWE COLOR increases earnings per share by 41%

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22/03/2012 06:55
DGAP-News: CeWe Color Holding AG / Key word(s): Final Results/Forecast CEWE COLOR increases earnings per share by 41% 22.03.2012 / 06:55 --------------------------------------------------------------------- CEWE COLOR increases earnings per share by 41% - EBIT grows by 7.0 % to EUR 30.1 million - Earnings per share tax rise by 41 % to EUR 2.84 - 12-month ROCE increases to 19.8 % - Dividend for 2011 to rise: EUR 1.40 per share proposed - Online printing to boost growth Oldenburg, 22 March 2012. CEWE COLOR Holding AG (SDAX, ISIN: DE0005403901) has increased its earning power exceptionally strongly, with annual turnover, at EUR 469 million, 5 % higher than that of the previous year. EBIT grew by 7.0 % to a sound EUR 30.1 million. Earnings per share were improved by 41 % to EUR 2.84, also as a result of a non-recurring tax effect and the repurchase of shares in 2011. Income from the average amount of fixed capital (ROCE) rose by 19.8 % (2010: 17.8%). On the basis of the annual net profit in the amount of EUR 18.6 million (2010: EUR 13.7 million), the Board of Management and the Supervisory Board will propose to the Annual General Meeting, to be held in Bremen on 6 June, that the dividend paid out be increased again over that of the previous year to EUR 1.40 per share. 'We have completed our transformation from analogue to digital photography with a strong earning power. At the end of the business year we were practically debt-free. We used this position to invest in the growing future market of online printing with the acquisition of Saxoprint,' says Dr. Rolf Holllander, Chairman of the Board of Management of CEWE COLOR Holding AG. Despite the intensive development of the new business segment of online printing, the management plans to achieve the income level of 2011 in 2012 as well. CEWE PHOTO BOOK grows even more than in the previous year With the overall number of photos stable at 2.5 billion, the success of the CEWE PHOTO BOOK contributed significantly to the increase in sales. CEWE COLOR achieved new record sales with 5.146 million books sold (2010: 4.337 million books). The increase of 809,000 CEWE PHOTO BOOKS was thus far higher than the rise of 693,000 books in the previous year. The CEWE PHOTO BOOK and the extended product portfolio also increased the proportion of digital photos to 90 % (2010: 85.3 %). 'The CEWE PHOTO BOOK was even more successful in 2011 than we had hoped at the beginning of the year,' says Dr. Hollander. The growing success of high-quality wall decorations and personalised added-value products such as calendars, greeting cards and photo gift articles also contributed considerably to the high sales volume and the 6.2 % increase in turnover per photo. Customers ordered 67.4 % of their digital photos online, more than two-thirds of all the digital photos ordered (2010: 60.7%). CEWE COLOR intends to increase online printing to EUR 40 million as early as in 2012 CEWE COLOR closed the 2011 business year with a capital ratio of 41.9 %. The company was virtually debt-free on 31 December 2011. This extremely sound cash position enabled CEWE COLOR to acquire Saxoprint GmbH, Dresden, a specialist for online-connected offset printing, in February 2012. With Saxoprint, CEWE COLOR has already achieved a leading market position in the growing market for online prints in 2012 and has supplemented its offer for business customers, a sector in which CEWE COLOR is already actively operating digital printing services with viaprinto.de. 'The markets for commercial online printed products and photofinishing are converging, and we are actively involved in shaping this change. The acquisition is a logical development of our business model, which aims to achieve economies of scale with industrially efficient production,' Dr. Hollander explains. The acquisition supplements the digital print capacities installed by CEWE COLOR for photo products by offset print capacities for online printing. While digital printing is able to produce orders for prints of around 500 copies at a reasonable price, offset printing is more efficient for orders for more copies. Turnover in the online printing segment is to increase to around 40 million euros in 2012 thanks to the Saxoprint acquisition. In the coming five to ten years the online printing segment is to generate turnover of more than 100 million euros and positively influence the earning power of the CEWE COLOR Group as a whole. 2012 turnover to grow to more than EUR 500 million While the new business segment of online printing will generate a major surge in growth, the management expects the number of photos to decline slightly by 5 % to 8 %, to amount to 2.29 to 2.36 billion prints. In contrast, the Board of Management predicts that growth of the CEWE PHOTO BOOK will be sustained and will amount to 11 % to 15 %, or 5.7 to 5.8 million books. On the basis of the contribution to sales of online printing in the amount of around EUR 40 million, turnover is to rise by 7 % to 12 %, in the range of EUR 500 million to EUR 525 million. After adjustment by the contribution to sales of the new online printing business segment, the management predicts a slight average increase in sales to EUR 460 million to EUR 485 million (-9 % to +3.4 %). The company plans to invest a volume in the range of EUR 30 million to EUR 33 million (-1 % to +9 %) in 2012. EBIT is expected to be in the range of EUR 27 million to EUR 33 million (-10% to +10%). The average of this range is thus the same as in the 2011 business year. Since the management does not expect online printing, at turnover of around EUR 40 million, to contribute notably to earnings, an EBIT margin of 5.6 % to 7.2 % - an average of 6.4 % - results on the basis of photofinishing sales (2011: 6.4%). Earnings per share are likely to reach EUR 2.44 to EUR 3.06. Dr. Hollander: 'We will be using 2012 to develop our basic photofinishing line of business, in particular with the CEWE PHOTO BOOK and digital added-value products, and to turn online printing into a sustainable growth generator for sales and income.' CEWE COLOR Group Unit Actual Target Actual Target 2010 2011 2011 2012 Digital prints in billion 2.1 2.0-2.1 2.25 2.13-2.18 units Prints from films in billion 0.37 0.23-0.26 0.25 0.16-0.18 units Total prints in billion 2.5 2.23-2.36 2.5 2.29-2.36 units CEWE PHOTO BOOKS in million 4.3 4.6-4.8 5.1 5.7-5.9 units Investments in million 26.4 30-32 30.3 30-33 euros Turnover in million 446.8 447-460 469.0 500-525 euros EBIT in million 28.2 28-31 30.1 27-33 euros EBT in million 26.4 26-29 29.2 25-31 euros Earnings after in million 13.7 16-19 18.6 16-20 tax euros Earnings per in euros/share 2.02 2.36-2.80 2.84 2.44-3.06 share Should you have any queries, please contact: CEWE COLOR Holding AG, Axel Weber (Investor Relations) Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: IR@cewecolor.de Internet: www.cewecolor.de , www.cewe.de , www.cewe-fotobuch.de www.viaprinto.de , www.saxoprint.de Financial schedule: 15 May 2012: Publication of the QI interim report 6 June 2012: Annual General Meeting, Park Hotel, Bremen 9 August 2012: Publication of the QI-Q2 interim report 8 November 2012: Publication of the QI-Q3 interim report 12 November 2012: German Equity Forum, Frankfurt About CEWE COLOR: Photo service company CEWE COLOR, with 13 highly-technical production operations and a staff of around 3,100 employees in 24 European countries, is both market and technological leader. In 2011 CEWE COLOR delivered around 2.5 billion prints, more than 5.1 million CEWE PHOTO BOOKS and photo gift articles to more than 40,000 retail partners to generate consolidated turnover of 469 million euros. CEWE COLOR is a 'first mover' in the introduction of new digital technologies and products. CEWE COLOR is continuing to expand its commercial online printing service viaprinto.de as an additional business segment. CEWE COLOR celebrated its 50th company anniversary in 2011: In 1961 CEWE COLOR was founded by Senator h.c. Heinz Neumüller. The company went public under the leadership of Hubert Rothärmel in 1993. CEWE COLOR Holding AG is listed on the SDAX. End of Corporate News --------------------------------------------------------------------- 22.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: CeWe Color Holding AG Meerweg 30-32 26133 Oldenburg Germany Phone: +49 (0)441 40 4-1 Fax: +49 (0)441 40 4-42 1 E-mail: IR@cewecolor.de Internet: www.cewecolor.de ISIN: DE0005403901 WKN: 540390 Indices: SDAX Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 161553 22.03.2012