CEWE Stiftung & Co. KGaA — Earnings Release 2003

Mar 2, 2004

News Details

Ad-hoc | 2 March 2004 08:00

CeWe Color Holding AG: Preliminary figures for the business year of 2003

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Preliminary figures for the business year of 2003 In 2003 CeWe Color cash flow amounts to Euro 46.5 million (-2.3 %) Oldenburg, March 2, 2004 – In the business year of 2003, CeWe Color Holding AG (SDAX, ISDN DE 000 540 3901) – the largest independent photofinisher in Europe – maintained its cash flow, which amounted to Euro 46.5 million, at almost the same level as that of last year, at Euro 47.6 million. Earnings before tax (EBT), at Euro 13.2 million, and corporate profits after tax, at Euro 3.6 million, are below last year’s levels, namely 24.6 % and 60.4 % respectively. The drop in comparison to profits generated in the previous year is largely due to increases in depreciations (2003: 42.9 million Euro, +11.4 %). A total of Euro 6.2 million of this sum is for depreciation of the goodwill of Konica Photo Service (KPSF) alone. Temporary negative effects of IAS accounting – Instructions of the Deutsche Börse AG made it necessary for CeWe Color to switch its accounting system from HGB to IAS in 2003. This has resulted in additional, albeit temporary, increases in depreciation, amounting to approximately Euro 6 million per year in comparison to HGB accounting. A one-time tax increase of Euro 1.2 million in tax arrears occurred as a result of a fiscal audit for 1993 to 1999 – in addition to Euro 700,000 interest in arrears which burden interest earned. Sales volume increases by 0.2 % to 3,402 million colour prints – CeWe Color was able to slightly raise its sales volume in comparison to that of last year by 0.2 %, to 3,402 million colour prints (2002: 3,395 million colour prints). Growth in the number of digital photos, at 339 %, from 38.8 million photos to 170.3 million in 2003, exceeded expectations. While digital camera owners are ordering more and more prints, and orders are getting larger too, the market for films declined by 8 % last year. Companies and dealers have virtually stopped advertising for photos from films. Hence CeWe Color too has reported a decline in film developments of 5.2 %, to 89.4 million. Conventional prints from films have decreased by 3.7 % to 3,232 million. Decline in turnover of 5.2 % – In 2003 CeWe Color generated turnover amounting to Euro 416.2 million (2002: Euro 439.2 million). Our own retail branches in Scandinavia and Central Eastern Europe account for 12 % of this decline. In 2003, 24 unprofitable branches were closed down. A decline in turnover of Euro 6.1 million resulted from exchange-rate losses in Switzerland, Scandinavia and Central Eastern Europe. The remaining declines in turnover are due to shifts in the product mix in the area of conventional films and in particular to a weak tourism sector. Around 50 % of all photos ordered are taken during holiday trips. 2004 outlook – At present it is not clear how the tourism sector, so vital for the volume of prints, will develop during the summer season, and nor is it possible at the moment to asses by how much film developments will decline. The Board of Management of CeWe Color Holding AG therefore reports on its forecasts for 2004 within the following ranges: – Development in volume conventional – 8 % to – 15 % digital +150 % to +200 % total +/- 0 % to – 7 % – Sales +/- 0 % to – 7 % – Profits Cash Flow Euro 40 to Euro 50 million EBT Euro 10 to Euro 18 million – Investments Euro 30 to Euro 35 million – Dividends Euro 0.70 to Euro 0.90 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.de end of ad-hoc-announcement (c)DGAP 02.03.2004 ——————————————————————————– WKN: 540390; ISIN: DE0005403901; Index: SDAX Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart 020800 Mär 04