CEWE Stiftung & Co. KGaA — Earnings Release 2003

Apr 27, 2004

News Details

Ad-hoc | 27 April 2004 07:59

CeWe Color enhances 2003 operating profit by 5.9 %

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CeWe Color enhances 2003 operating profit by 5.9 % Oldenburg, April 27, 2004 – CeWe Color Holding AG (ISDN DE 000 540 3901, SDAX) – the largest independent photofinisher in Europe – enhanced its 2003 operating profit (before tax and depreciation on intangible assets) by 5.9 %, from 22.0 million euros to 23.3 million euros. In addition, the corporate group generated cash flow amounting to 46.5 million euros, which is almost the same as last year’s level of 47.6 million euros (- 2.3 %). Profits reduced by increased depreciation Earnings before tax (EBT), at 13.2 million euros, and corporate earnings after tax, at 3.6 million euros, are 24.6 % and 60.4 % below the figures for the previous year. The drop in profit in comparison to that of the previous year is mainly due to increases in depreciation (2003: 42.9 million euros, + 11.4 %). Besides depreciation of fixed assets amounting to 32.8 million euros, depreciation of intangible assets amounted to 10.1 million euros in 2003 (previous year: 4.5 million euros). High-margin digital products with high added value Turnover in 2003 in the area of retailing, film development and the sale of conventional prints decreased by 5.2 % to 416.2 million euros as a result of a weak economy and a downturn in the tourism sector (2002: 439.2 million euros). The cost of materials was lowered by 9 %, one reason being the growth generated in the area of high-margin digital products. Costs for staff and other operating costs were cut by 2 % and 0.7 % respectively. The number of staff employed by the corporate group was reduced from 3,977 to 3,907 (- 1.8 %). Expansion of market shares on the European Continent to 33 % In each country, CeWe Color now has an industrial photofinishing market share of at least 30 %, with the corporate group now holding the largest market shares in Central Eastern Europe. The growth-generator: digital photography CeWe Color focused on this area of business last year and was able to offset – or even over-compensate – the decline in the number of colour prints from films thanks to growth generated in the area of digital photography (+ 0.2 % to 3,402 million colour prints). While in 2002 only 38.8 million digital photos were developed, in 2003 this figure had already risen to 170.3 million, a growth rate of 339 %. While CeWe Color digital products and services accounted for approximately 8 % of turnover in December 2002, the digital proportion had risen to more than 19 % in December 2003. The management of the company expects that digital products and services will account for almost 50 % of turnover by 2005. Investments of 40.6 million euros mainly for digital production capacities The strong growth being generated in the field of digital photography has prompted CeWe Color to greatly increase its digital capacities, thus enhancing capital expenditure from 29.5 million euros to 40.6 million euros (+ 37.6 %). Besides increasing the capacity of the networks for transmitting image data in the Internet and extending the Internet platform, all 24 production plants in Europe have been put in a position to supply their regional markets with digital products and services. This investment budget has laid the foundation for extending market leadership in the field of digital photofinishing in Europe. As in previous years, investments were financed solely from cash flow generated. Dividend payout of 80 cents The Supervisory Board and the Board of Management of CeWe Color Holding AG will propose to the Annual General Meeting of the company, to be held on June 24, 2004, a dividend payout of 0.80 euros per share for the business year of 2003. 2004 targets and key data It is not possible to forecast exact developments in the photographic sector at present. We are hoping that 2004 will see a boost in consumption and in particular, recovery in the travel sector. Of all photos taken, 50 % are snapped during holiday trips, and this means that the photofinishing branch is a highly seasonal one. The third quarter is decisive for the amount of annual net profit generated. Due to current uncertainty on how the summer season will develop, the Board of Management is announcing the following key data, intentionally cautious, for the development of CeWe Color in 2004: – Development in volume conventional -8 % to -15 % digital +150 % to +200 % total +/- 0 % to – 7 % – Sales +/- 0 % to – 7 % – Profits Cash Flow 40 to 50 million Euro EBT 10 to 18 million Euro – Investments 30 to 35 million Euro – Dividends 0.70 to 0.90 Euro Should you have any queries, please contact: CeWe Color Holding AG, Hella Meyer, Tel.: 0441 / 404 – 400 or 0171 / 34 50 530, Fax: 0441 / 404 – 421, eMail: hella.meyer@cewecolor.de, Internet: http://www.cewecolor.com end of ad-hoc-announcement (c)DGAP 27.04.2004 ——————————————————————————– WKN: 540390; ISIN: DE0005403901; Index: SDAX Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart 270759 Apr 04