CEWE Stiftung & Co. KGaA — Earnings Release 2006

May 30, 2006

News Details

Ad-hoc | 30 May 2006 07:30

CeWe Color Holding AG: Quarterly earnings at CeWe Color on track

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Quarterly earnings at CeWe Color on track Oldenburg, May 30, 2006 – CeWe Color Holding AG (SDAX, ISIN DE 0005403901) reports that the first quarter of 2006 was right on forecast. Revenues totaled EUR 77.7 million, 9.9 % lower than in the previous year as a result of the downturn in films caused by situation on the market. In contrast, it was possible to increase sales of digital prints by 39.6 % from 137.0 million prints to 191.2 million. The operating result (EBIT) totaled EUR -4.2 million, up 6.0 % on the previous year. Booming, thanks to digital cameras – The number of films sold in Germany fell by 51.9 % from 2000 to 2005 to 90 million films. Sales and revenue growth at CeWe Color reflects this trend. The number of color prints from film fell by 31.0 % in the first quarter 2006 to 380.3 million prints and the total number of color prints fell by 16.9 % to 571.5 million prints. CeWe Color is recording higher average income per print thanks to the migration from analog to digital products. As a result revenues fell less than the volume sold. Sales of digital prints up 39.6 % – CeWe Color was able to increase its sales of digital prints by 39.6 % to 191.2 million prints in the first quarter of 2006. That means that CeWe Color is already developing more than 33.4 % of all of its prints from digital data. The Internet and order terminals (DigiFoto-Maker) in stores continue to drive the growth of digital print sales. Around one third of all digital prints are ordered via the Internet (65.5 million prints, + 48.2 %). Two thirds of digital prints (125.7 million prints, + 35.5 %) are ordered in the 60,000 stores operated by CeWe Color’s retail partners. EBIT up 6.0 % – CeWe Color was able to lift its EBIT by 6.0 % to EUR -4.2 million. This means that CeWe Color has succeeded in fully compensating for the downturn in sales (- 9.9 %) via a wide range of activities to increase profitability in its operating activities. Photofinishing operations generally make a loss in the first quarter for seasonal reasons. Half of all photos are taken on vacation and while traveling. Outlook for fiscal year 2006 confirmed – CeWe Color has been able to substantially improve its competitive position since 2004. As the European market leader for industrial photofinishing, and bolstered by strong increases in the sales of digital products, CeWe Color succeeded in recording pre-tax earnings (EBT) of EUR 25.5 million in 2005, the best EBT in the last five years. For 2006, CeWe Color is aiming for an EBT of EUR 21.0 million (according to forecast) – its second-highest earnings in the last six years. “In 2006, boosting profits has priority over maximizing sales,’ noted Dr. Rolf Hollander, Chairman of CeWe Color Holding AG’s Managing Board. At the latest in 2008, CeWe Color will once again generate growth mostly with digital products once the market for prints from films has bottomed out. For any queries please contact: CeWe Color Holding AG, Hella Hahm, Tel.: +49 (0) 441 / 404 – 400 (Sec. – 234) or +49 (0) 171 / 34 50 530, Fax: – 421, eMail: hella.hahm@cewecolor.de, Internet: www.cewecolor.com (c)DGAP 30.05.2006 ————————————————————————— Language: English Issuer: CeWe Color Holding AG Meerweg 30-32 26133 Oldenburg Deutschland Phone: +49 (0)441 40 4-1 Fax: +49 (0)441 40 4-42 1 email: info@cewecolor.de WWW: www.cewecolor.de ISIN: DE0005403901 WKN: 540390 indices: SDAX Listed: Geregelter Markt in Berlin-Bremen, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————