CEWE Stiftung & Co. KGaA — Earnings Release 2006

Feb 27, 2007

News Details

Corporate | 27 February 2007 08:04

CeWe Color invests in growth

CeWe Color Holding AG / Final Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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CeWe Color invests in growth

• 2006 earnings after tax rise due to special items
• 2007 earnings reduced due to restructuring measures
• Board of Management expects rise in earnings as of 2008

Oldenburg, 27 February 2007 – According to preliminary calculations, in the
fiscal year of 2006, CeWe Color Holding AG (SDAX, ISIN DE 0005403901)
generated the second-best operative earnings (EBT) of the past six years,
at EUR 21.1 million (-17.3%) (2005: EUR 25.5 million), with Group turnover
at EUR 400.5 million -7.1 %). Earnings after tax exceeded the figure for
the previous year due to non-recurring special tax effects by around 55 %,
to reach EUR 17.9 million (2005: EUR 11.5 million).

Increased investments for digital growth planned
Without any corporate acquisitions the company will probably invest around
EUR 36 million in 2007 (investments in 2006: EUR 32.5 million) in at least
10,000 new order stations for digital photos in stores (DigiFoto makers),
in product development – primarily software for Internet services and CeWe
photo books – and in digital production capacities. Medium-term planning
provides for an investment volume of between EUR 150 million and EUR 200
million over the next five years. Around EUR 30 million per year have been
budgeted for product developments and digital production capacities. CeWe
Color will probably spend EUR 50 million on corporate acquisitions, market
consolidation and on supplementing the product range – most of this amount
will be invested in 2007 and 2008. In February 2007 two companies were
already acquired in Poland and in the Czech Republic. 'We are convinced
that the positive effects of investments made in the expansion of our
company will begin to become apparent as of 2008,' Dr. Rolf Hollander,
Chairman of the Board of Management of CeWe Color Holding AG, points out.
With the rising number of CeWe photo books sold, the company has proved
that it is rapidly opening up attractive new markets. During the fourth
quarter CeWe photo books were already accounting for 12.1 % of the overall
volume of digital photos. The expansion of Internet business was also well
on the way. In 2006 the number of Internet-based orders rose by 59.3 %.
This kind of success can only be based on investment and forward-looking
methods of conducting business.

2007 earnings decreased by restructuring measures – growth as of 2008
The Board of Management of CeWe Color Holding AG expects 2007 earnings
before tax and reconstruction to amount to EUR 24.5 million. According to
current Board of Management estimates expenditure for restructuring the
company is likely to be at around EUR 11 million, with anticyclical
positive effects amounting to EUR 1 million in 2007. For 2007 the Board of
Management expects earnings after tax of around EUR 7 million. However,
given the investments being undertaken and positive restructuring effects,
earnings are expected to rise as of 2008.

CeWe Color at a glance:

                       2005       2006      Change   2007(e)   Change
                       in € m.    in € m.   in %     in € m.   in %

Sales 431.1 400.5 -7.1 % 380.0 -5.1 %

Earnings before interest, 68.6 63.2 -7.9 % 49.5 -21.7 %
taxes and depreciation
(EBITDA)

Operational earnings 28.7 26.4 -8.1 % 15.3 -42.0 %
(EBIT)

Earnings before 24.4 * 27.3 +11.9 % 24.5 -10.3 %
restructuring and tax

Earnings before tax (EBT) 25.5 21.1 -17.3 % 14.5 -31.3 %

Earnings after tax 11.5 17.9 +55.4 % 7.0 -60.9 %

Cash Flow (earnings after 51.4 54.7 +6.4 % 41.2 -24.7 %
tax + deductions for
depreciation)

Free Cash Flow (Cash Flow 15.2 22.2 +46.1 % 5.2 -76.6 %
– investments)

Capital expenditure 36.2 32.5 -10.2 % 36.0 +10.8 %

Liquid funds as at 31.12. 27.4 14.5 -47.1 %

Employees on an annual 3,730 3,131 -16.1 %
average basis

* incl. EUR 13.9 million in positive insurance compensation

Should you have any queries, please contact:

CeWe Color Holding AG, Hella Hahm, Tel.: 0441 / 404 - 400 (Secretary – 234)
or 0171 / 34 50 530, Fax: 0441 / 404-421,
email: hella.hahm@cewecolor.de
Internet: www.cewecolor.com

About CeWe Color: Photo service provider CeWe Color, with 20
highly-technical photofinishing plants and a staff of 3,000 employees in 19
European countries, is both market and technological leader. Every year,
more than 2.9 billion colour prints are supplied to 2006 customers from the
trade. In 2006 turnover amounted to EUR 400.5 million. CeWe Color is 'first
mover' in the launch of new digital technologies, for example when ordering
digital photos via the Internet or by ordering terminals (DigiFoto makers)
at the local retail. The digitally individualized CeWe photo book can be
considered as one of the most successful products in terms of volume and
sales. In 1961, CeWe Color was founded by Senator h.c. Heinz Neumüller and,
with Hubert Rothärmel at the helm, the company went public in 1993. CeWe
Color Holding AG is listed on the SDAX.

DGAP 27.02.2007

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
E-mail: 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

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