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CeWe ColorCompany Presentation
Close Brothers SeydlerSmall & MidCap Conference
Frankfurt, February 3, 2010
This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of CeWe Color. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.
All numbers are calculated as exactly as possible and rounded for the presentation. Due to this, rounding errors might occur.
Page 2
Page 3
1. Who is CeWe Color?
2. 5 good reasons to invest in CeWe Color
3. Volume results 2009 and confirmed “outlook” 2009
4. Backup: Long term results
Agenda
Page 4
1. Who is CeWe Color?
2. 5 good reasons to invest in CeWe Color
3. Volume results 2009 and confirmed “outlook” 2009
4. Backup: Long term results
Agenda
• 13 production plants• 24 European countries• 2,700 employees• 1,300 courier service drivers• 50,000 retail partners (PoS) (- 35,000 PoS supplied direct by CeWe Color - 15,000 PoS supplied through customers‘ logistic systems)• 191 retail stores in Central Eastern Europe and Norway• EUR 420 million revenue (2008)
2010 corporate structure(in January 2010)
Production sites
Page 5
CeWe Color is the leading photo service company in Europe
Pharmaceuticalmarkets
Photo retailers
Food retailers and department stores
Internet retailers
System partnersHome electronics stores
50,000 trade partners in Europe
Page 6
We reach consumers through strong retail brands Retail partners invest in distribution and marketing Retail sales channels with online retailers and system partners
Different ways to order CeWe products
Ways
to order
Internet /
Online
Website
DFM-Kiosk with printer
produces pictures at the POS
Point of sale
1
2
3
4
5
CEWE PHOTOBOOKSoftware
DigiFotoMaker burns CD
or sends data online
Film / data carrier in
a photo envelope
Page 7
CeWe offers all possible ways to place an order
Overview CeWe products
Prints from digital and analogue
cameras
CEWE PHOTOBOOK
Photo gift articles and Print products
(e.g. calendars und greeting cards)
PhotofinishingProducts
Page 8
Digital printing becomes more important
1. Photo gift articles 3. Print products
Personalised photo products
2. Wall decoration
Page 9
Added-value products to generate growth
Photo gift articles
MousepadMug Shoulder bag
Sports bag Lunch box
1
Page 10
CeWe offers a wide range of photo gifts
Wall decoration (1/2)
• 14 formats, from: 20x30 cm to 90 x 160 cm
• 5 formats with shadow gap frames
2
Page 11
A photo canvas is an attractive wall decoration element
Wall decoration (2/2)2
Poster behind acryl glas Poster on aluminium composite plate
Page 12
CeWe offers a wide range of poster products
Print products3
Greeting cards and post cards
Desk-top and wall calendars Notebooks for students and pupils
Page 13
Personalised cards, calendars and notebooks
CEWE PHOTOBOOK
Page 14
The top seller
CEWE PHOTOBOOK
Soft cover Canvas cover Hard coverPhoto booklet
Page 15
Widest range of products Highly attractive for retailers and consumers
CEWE PHOTOBOOKNew CEWE TOPIC PHOTOBOOKS
Winter holidaySummer holiday
BabyScrap design
Page 16
12 new CEWE TOPIC PHOTOBOOKS, e.g., summer holiday, winter holiday, baby, scrap-design, soccer, wedding….
2 new CEWE PHOTOBOOKS formats
Commercial customers of CEWE PHOTOBOOKS
Building constructor for half-timbered houses
Jewellery designer
Veterinarian surgeryBathroom fitter
Page 17
Commercial customers use CEWE PHOTOBOOKS as a promotion brochure
CEWE PHOTOBOOKAwards
ETM Testmagazin
April 2009
EISA Award2009 – 2010
Stiftung Warentest
August 2009Partner: Saturn
MacweltDecember 2009
Page 18
Page 19
1. Who is CeWe Color?
2. 5 good reasons to invest in CeWe Color
3. Volume results 2009 and confirmed “outlook” 2009
4. Backup: Long term results
Agenda
Here is why to invest in CeWe Color
Limited downside risk:• High equity capital ratio • Strong cash flows
Profit grows*:No restructuringone-offs due to analogue / digitaltransformation
Reduced extra burdensAnalogue to digital transition completed
GrowthMega trends as a growth driver:individualisation / personalisation
Cash Flow grows*: Reduced investmentvolume
Growth in photofinishing with CEWE PHOTOBOOKS,photo calendars,greeting cardsand other gifts
Additional growththroughweb-to-print forcommercial digital printing
1 2 3 4
5
* Ceteris paribus
Page 20
Timeline of restructurings
Photos (analog + digital)in billion units
Number of production sites
2004 2005 2006 2007 2008 2009
3.5 3.4
2.9 2.82.6
2.6
2004 2005 2006 2007 2008 2009
2322
2019
1513
1
Page 21
Capacity reduction in line with the volume trend Remaining operations more efficient
2002 2003 2004 2005 2006 2007 2008 e2009 e2010 e2011
0.0 0.0
2.6
12.9
6.7
12.211.4
10.0
0.0 0.0
Restructuring expenditure caused by the analogue-digital-transformationin million Euros
Restructuring expenditure1
Page 22
From 2010 on nor more restructuring expenditure will occur due to analogue/digital transformation
Ceteris paribus profits will increase by approx. 10 million Euros from 2010 on
2002 2003 2004 2005 2006 2007 2008 2009
2,036
2002 2003 2004 2005 2006 2007 2008 2009e
21.3
36,0 34.5 34.1 32.535.5 33.3
27
Investment in digital capacity analogue capacity
2Investments in digital capacities
2.0 billion digital photos in 2009
Investments > EUR 225 million
InvestmentsIn million Euros
Digital photosin millions
29.5
35.532.5
36.237.240.4
33.3
27
39170
509
830
1,114
1,515
1,786
Page 23
CeWe has consistently invested more than EUR 225 millionin building up digital business early
Capacity are largely sufficient. From 2009 on it may be possible to reduce investments
Brand awareness in European key market Germany
Top brand awareness in key market Germany
Germany 88,7
Benelux43,7
France31,9
Spain36,4
ROWE30,8
UK14,2
Italy9,9
Photobook Market value 2008by country
in million Euros
Page 24
CEWE PHOTOBOOK ranking positionin unaided brand awareness in Germany
#1
3
Photo book market development: Western Europe
Source: Futuresource consulting Ltd
2006 2007 2008 2009 2010 2011 20120
5
10
15
20
25
30
0.0
100.0
200.0
300.0
400.0
500.0
Retail Value (€M)
Photo book Volume Demand (M)
3
Page 25
The photo book market is still growing strongly
2006 2007 20080
2,000
4,000
6,000
8,000
10,000
12,000
Photo book development by manufacturer: Western Europe
Photo book unit sales (in 000’s)
CeWe Color
Infowerk
AlbumprinterHofmannPhotoservicePhotobox
Others
Source: Futuresource consulting Ltd
Unit sales of CeWe even amounted to 2.6 million books in 2008 (3.6 million books in 2009)
3
Page 26
CeWe is the European photo book market leader
Series1
-50%
-30%
-10%
10%
30%
50%
70%
90%
-13%
48%40%
19% 19%
Growth Opportunity Photo Products: Western Europe
Market Value Growth, 2007-2008
Source: Futuresource consulting Ltd
*
* Retail value
3
Page 27
CeWe participates fully in the market growth
Commercial digital printing
CeWe Color acquired the company diron on October 1, 2008.
4
Page 28
Commercial digital printing – a new pillar of the business
Objective:Entering in the digital printing market for commercial customers
Business concept of diron
Employees 2007: 24Revenue 2007: app. 2.1 million Euros
Core competences
• print4media Web-to-Print standard software
• „Sound Project“-experience
• Operating major customers
• Sales experience in printing and advertising market
Printing technologies
Offset printing
Digital printing
Customers
4
Page 29
Diron is software market leader in the Web-to-Print area
Two directions of diron:From large enterprises to SoHo 4
Page 30
diron offers commercial printing servicesfor businesses of all sizes
Large enterprises:Project solutions
SoHo & SME:Public solution
www.aprinto.de – a brand of diron® GmbH & Co. KG, a CeWe Color company
aprinto.de – step 1: Choose product4
Page 31
Broad choice of high quality print products
Easy-to-useinteractive pricing
aprinto.de – step 2: Upload file4
Page 32
Documents of many common formats can be processed
aprinto.de – step 3: Finetune positioning4
Page 33
Position of content on page can be adjusted easily
aprinto.de – step 4: Design cover4
Page 34
Cover sheet is designed easily using the document‘s first page with no hazzle
aprinto.de – step 5: Approve print preview … and go! 4
Page 35
Printed end product can be previewed on screen, like with print function in any desktop software
Convenient delivery
aprinto.de – additional function: store and share4
Page 36
MANAGE the documents in an online repository.
SHARE them with a direct link, so that co-workers or customers can order copies as needed.
aprinto key value proposition and next steps4
Page 37
Professional print products as easy as „File – Print – …“
Order one or any number of copies as needed
Online repository provides a document management solution on-the-fly, accessible 24x7 from everywhere
Share and distribute print products by simply forwarding the product link or embedding it on your web site
IR Manager
data
test report
vestors
Enterprise Customers: Project Solutions
EXAMPLE 1
Investors
Page 38
Diron and EquityStory AG: higher quality and lower costs in on-demand IR communication
4
2006 2007 2008 2009 2010 2011 2012
Growth in revenue for various product groups
Photo gift articles(e.g., photo calendars, photo greetingcards)
CEWE PHOTOBOOKS
Digital prints
Retail
Prints from films
Business Printing
CONCEPTUAL
NB: Contains only revenues from product groups currently sold or in the development stage
43
Page 39
Growth through digital printing (CEWE PHOTOBOOK, photo calendars, greeting cards and business printing)
2006 2007 2008 2009 2010 2011 2012
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
e
20
10
e
20
11
e
20
12
e
Growth stimulated by digita
l business Analogue
Digital
Retail
Regional expansion in the analogue marketTransformation phaseanalogue / digital
Growth I Transformation Growth II Analogue Digital
Revenue (shown as a diagram as of 2010)
Two CeWe Color growth phases43
Page 40
CeWe accomplishes the transition process CeWe is in the second stage of growth
Market entry barriersby product market
Marketentrybarriers
Physical distribution
Economy of scale in production
Physical distribution
Economy of scale in production
Economy of scale in after-printing production processes (e.g. book binding)
Consumer digital print
market
Commercial digital print
market
CEWE PHOTOBOOK software
vs. traditional printing companies
vs. software/marketing companies starting printing
Combination of software and production Know-How
Economy of scale in after-printing production processes (e.g. book binding)
• Web-to-print Know-How• Ability to
manage mini-orders in backend
43
Digitalsilver halide print market
Analoguesilver halide print market
Time
• Digital printing Know-How
CONCEPTUAL
Page 41
Level of market entry barriers is rising again
Financing at CeWe Color
High degree of credit worthiness among banks
Financing is secured: Credit lines only 50 % used
Solid equity ratio
Strong cash flows
Strategically strong position
Operationally strong position
5
Page 42
Financing is secured Downside risk is limited
38.5%
27.4%
4.3%
7.8%
6.7%
6.3%
4.0%
5.0%
* According to own information
Shareholder structure (January 2010)
7.38 millionshares
according to reports under §§ 21, 22 WpHG
27.4% ACN Vermögensverwaltungs-gesellschaft mbH & Co. KG(Community of heirs of Senator h.c. Heinz Neumüller)
7.8% Nord LB*
6.7% Sentosa Beteiligungs GmbH
6.3% Guy P. Wyser-Pratte
5.0% CeWe Color Holding AG
4.3% Lincoln Vale European Partners
4.0% Sparinvest Holding A/S
32.9% other shareholders
52.0% Free Float (according to Deutsche Börse)
Page 43
Community of heirs of the company‘s founder is principal shareholder of CeWe Color Holding AG
Solid base of long-term orientated shareholders
Jan Feb March
Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb March
Apr May Jun Jul Aug Sep Oct Nov Dec
4.8864.178
2.586
13.664
3.8804.082
2.0571.444
8.629
20.344
10.303
8.366
6.8237.651
8.254
11.209
16.990
12.673
9.872
14.82114.610
10.691
7.259
10.491
Average number of traded shares per dayin units
Trade volume 2008 and 2009
2008 2009
Page 44
Avarage trade volume on significantly higher level
Page 45
1. Who is CeWe Color?
2. 5 good reasons to invest in CeWe Color
3. Volume results 2009 and confirmed “outlook” 2009
4. Backup: Long term results
Agenda
2004 2005 2006 2007 2008 2009
3,534 3,433
2,8792,792 2,615
2,594
2004 2005 2006 2007 2008 2009
170
830
1,114
1,515
1,786
2,036
2004 2005 2006 2007 2008 2009
3,232
2,603
1,765
1,277
829
558
Photos totalin million units
Digital photos (incl. CEWE PHOTOBOOKprints)in million units
Photos from filmsin million units
+ 14.0%
-32.6%
Photos 2009
-0,8%
Page 46
Digital photos: +14% CEWE PHOTOBOOKS are essential growth drivers Product mix of higher value
Number of CEWE PHOTOBOOKSin thousand units
CEWE PHOTOBOOK increases +37,7%
Page 47
1,515
2,646
526
71
2005 2006 2007 2008
3,644
2009
Very positive volume increase of 37,7% generated by
CEWE PHOTOBOOKS
2009 „Outlook“
Colour photos digital 2.01.9 billion photos +6%
+14%analogue 0.6 0.5 billion photos -
38% -33%total 2.62.4 billion photos -8% -1%
CEWE PHOTO BOOKS 3.6 3.5 million books+35% +38%
Sales (exchange-rate adjusted) EUR 420-425 million 0% to +1%
Sales (nominal) EUR 405-410 million -2% to -4%
EBT before restructuring EUR 20-25 million -9% to +14%
Expenditure for restructuring EUR 10 million -9%
Earnings before tax (EBT) EUR 10-15 million -9% to +36%
Capital expenditure EUR 27 million -19%Net cash flow EUR 15-20 million +6% to +42%
Change against 2008
Page 48
First actuals
Page 49
1. Who is CeWe Color?
2. 5 good reasons to invest in CeWe Color
3. Volume results 2009 and confirmed “outlook” 2009
4. Backup: Long term results
Agenda
Turnover 2008
Turnoverin million Euros
+1.6%
2003 2004 2005 2006 2007 2008
416.2 428.5 431.1396.0 413.5 420.0
Page 50
Increases in sales in 2008 in retail business, Central Europe, Benelux and Central Eastern Europe and thanks to a strong fourth quarter
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0.0 0.0 0.0 0.0 0.0 0.02.6
12.9
6.7
12.2 11.4
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
16.2
19.4
13.7
9.9 9.1
3.61.2
11.5
17.9
5.9 7.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
30.1
37.2
30.0
20.217.5
13.2 14.2
25.5
21.1
12.810.7
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
30.1
37.2
30.0
20.217.5
13.2
16.8
38.4
27.825.0
22.1
1. Operative earnigs before restructuring 3. Earnings before tax (EBT)
2. Restructuring costs 4. Earnings after tax
in EUR millions
in EUR millionsin EUR millions
in EUR millions
CeWe Color results
* 2005 relieved by insurance payments to the amount of 13.4 million Euros
12,1
13.4*
25.0
13.4*
9.7**
** Special tax effect: waiver of claim (2006 and 2008) Activation of corporate tax assets (2006)
Page 51
The avarage trade volume sustainable on significantly higher level
General backup
Page 52
• Responsible for managing the operative business of the CeWe Color group
• Headed by the Directors and Managers of the Foundation
CeWe Color AG & Co. OHGapprox. 2,700 employees
head
CeWe Color Holding AG3 Directors, no other employees
• Partner of the OHG
• AG Supervisory Board
• AG Board of Management
Neumüller CeWe Color Foundation9 Directors/Managers, no other employees
• Managing partner of the OHG
• Board of Trustees
• Foundation executives/management
Shareholders (community of heirs, funds, private shareholders)
CeWe Color Group corporate structure
Page 53
Since 1992 the Foundation has ensured stability and sustained positive development
Technologies / Products – Matrix
*Includes printing and further finishing steps (e. g. cutting, gluing, folding, …)
Silver-Halide-Technology (classical print development on photographic papers - AgX)
Thermo-dye or ink jet(on-site printing at the retailers’ POS)
Digital printing (Electro-photography) on, e.g., hp Indigo machines*
Other technologies with smaller volumes (partly outsourced)
Photos (on special photographic paper)
CEWE PHOTOBOOKS
Greeting Cards
Calendars
Mugs, bags, canvas, mouse pads, crystal photos, snow globes, puzzles
Main applica-tion of a tech-nology
Additionalapplication ofa technology
=
=
Page 54
Digital printing is a second major technological pillar for CeWe Color
1995/1996
Budapest Graudenz Neu-Ulm KPSF Warwick TepliceCeWe-Digital
Fotoclassic(Polen)
Lourdes Hamburg KPSF Marseille Worms Berlin Bad Schwartau ParisNeu-Ulm Warschau Lille Arhus Zirndorf Valence Teplice
BordeauxEisenach
CeWe-Digital
Fotoclassic(Polen)
26 27 28 2725 24 23 22
20 19
1513
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Number of CeWe operations
–
+ +8
-17
Drivers of operation concentration:
• Realisation of economies of scale
• Discontinuation of overnight service
Σ
(Fusion with mit CeWe Color)
HamburgWarsaw
BerlinZirndorf
Fotoclassic (Poland)
Page 55
CeWe has almost halved the number of labs since the peak in 2000
Requirements for restructuring resulting from the analogue/digital transformation
Change fromanalogue to Digital photo-graphy
Reduction of production of network density
Discontin
uation
of ove
rnight
servi
ces
Decline of th
total volume
Page 56
Reduction of production of network density
2 triggers of the finalised analogue / digital transformation:
Network density and capacity
Seasonal shift in sales
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Product-related seasonal distribution
Q1 Q2 Q3 Q4
Photo gifts
Digital photos
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Traditionalseasonal business
Photosfromfilms
CEWE PHOTO BOOKS
Diagram
Futureseasonal business *
* Own estimation for the coming few years
Page 57
Product shift sees Q4 as the main season
Seasonal spread: CeWe 2006 to 2008in % of sales
Q1 Q2 Q3 Q4
CeWe 06 CeWe 07 CeWe 08CeWe 06 CeWe 07 CeWe 08 CeWe 06 CeWe 07 CeWe 08 CeWe 06 CeWe 07 CeWe 08
Change in season
20 19 2025 24 24
32 30 28 2327
29
Page 58
Q4 is becoming increasingly significant Product mix change results in seasonal shift to Q4
Backup Q3/2009
Page 59
Highlights Q3/2009
* Source: Future-Source
Operatively strong
Financially successful
Clear strategy
1
2
3
• No. 1 position on the market for photo books reinforced: +40.7% (Q1-3/09) growth in volume for CEWE PHOTO BOOKS against +36% estimated overall market growth* in 2008 (market share increased!)
• Strong growth for calendars and greeting cards too; CEWE PHOTO BOOK now also test winner with Apple-Macintosh software in "Mac Welt"
• Effective Internet growth: +27% Internet turnover and hence a benchmark for pure players (photos general – 4.8%)
• Exchange-rate adjusted turnover stable despite seasonal shift:(+0.2%) to 112.2 m. euros in Q3/09 (nominal -4.7%)
• Added value products and restructuring take effect: Earnings and profitability enhanced, e.g. EBT +0.7% to 15.1 m. euros
• Investments slightly below previous quarterdespite special effect in Munich (full year 2009 at approx. 27 m. euros far below previous year, -18.9%)• Capital ratio raised to 39.2%• Secure financing: Golden rule of accounting maintained• Secure more growth in photofinishing:
CEWE PHOTO BOOK, photo greeting cards and calendars Photo gift articles
• Ramp up commercial digital printing pursue with vigour
Page 60
CeWe remains on track in Q3/2009,earnings targets for 2009 confirmed
Photos in Q3
2005 2006 2007 2008 2009
1,151
947905
828 789
2005 2006 2007 2008 2009
284
371
484
559
602
2005 2006 2007 2008 2009
868
576
421
269
187
Total no. of photos in Q3in millions
Digital photos in Q3 (incl. CEWE PHOTO BOOK prints)in millions
Photos from films in Q3in millions
+7.6%-4.8%
-30.6%
Page 61
Digital photos: +7.6% CEWE PHOTOBOOKS are a significant growth driver Seasonal shift continues as anticipated
Digital photos in Q3
2005 2006 2007 2008 2009
201
238
290300 293
2005 2006 2007 2008 2009
83
134
194
259
308
Digital photos ordered in a store (PoS)in millions
Digital photos ordered onlinein millions
-2.2%
Maildelivery 44%
Collection at a store 56%
100% Collection at a store (PoS)
+19.1%
Page 62
56% of the photos produced in Q3 collected in stores Strong CeWe: linking the Internet to 50,000 PoS Internet turnover even increased by 37% (pure player
benchmark)
2006 2007 2008 2009
129
443
747
943
CEWE PHOTO BOOK increases in Q3
Number of CEWE PHOTO BOOKS in Q3in thousands
+26.2%
Page 63
Very positive increases of 26.2% generated
for CEWE PHOTOBOOKS
Q3 turnover
2005 2006 2007 2008 2009
90.1 89.2
27.6 23
Q3 turnoverin EUR millions
Real: +0.2%Nominal: -4.7%
Retailing: Exchange-rate adjusted turnover stable (+0.1%)- but -16.8% points due to exchange-rate effects, thus nominal -16.7%
Photofinishing: Exchange-rate adjusted turnover stable (+0.2%) - but -1.2% points due to exchange-rate effects, thus nominal -1.0%
Retailstores
Photofinishing
117.7 112.2123.5124.7131.8
Page 64
Stable exchange-rate adjusted turnover, in photofinishing and in retail trade
Value-added products stabilise turnover in real terms on a volume basis, despite seasonal shift
2005 2006 2007 2008 2009
21.4 20.3 21.9
15.0 15.1
2005 2006 2007 2008 2009
24.3 23.5 22.2
15.0 15.3
Q3 earnings before tax
EBT before restructuring and taxes in EUR millions
EBT after restructuring and before taxes in EUR millions
+1.7% +0.7%
- Unadjusted margin rises though increase in turnover share of high unadjusted-margin added-value products
- Costs reduced through restructuring
2.9 *
* Insurance income from fire damage in Lille (F)
Page 65
Added value products and restructuring take effect
Q3 restructuring costs
2005 2006 2007 2008 2009
2.93.2
0.30.0
0.2
Chart Title
Q3 restructuring costsin EUR millions
Page 66
Q3/09 Human Resources restructuring France negligible
2005 2006 2007 2008 2009
14.9
17.5
14.8
11.9 12.2
Q3 tax effects
Q3 tax expenditure in EUR millions
+2.8%
Q3 earnings after tax in EUR millions
2005 2006 2007 2008 2009-6.5 -2.8 -7.1 -3.1 -2.9
* Statistical proportion of earnings from income from fire-damage insurance for Lille (F)
1.3*
Page 67
After-tax earnings also better than in previous year
Capital expenditure
2005 2006 2007 2008 2009-9.5 -10.1 -6.8 -9.2 -10.4Chart Title
Q3 capital expenditure in EUR millions
-13.5%
2005 2006 2007 2008 2009-25.8 -21.7 -34.3 -20.4 -20.3Chart Title
Q1-3 capital expenditure in EUR millions
+0.1%
-6,9
-3,5 Investment inexpansionin Munich
-16,8
-3,5Investment inexpansionin Munich
Page 68
Excl. special one-off investments in Munich: investments reduced in Q3/2009
Free Cash Flow
Free cash flow in Q3 in EUR millions
-67.9%
2005 2006 2007 2008 2009
4.1
11.3
15.8
11.4
3.6
Free cash flow in Q1-3 in EUR millions -31.1%
2005 2006 2007 2008 2009-1.5 -8.8 -3.4 -8.2 -10.9
+EUR 8.2 million in cash flowfrom a non-recurring
reduction in inventory effect
EUR -5.6 million in cash flowfrom a non-recurring
increase in inventory effect
EUR -7.6 million Cash flow
increase in inventory
EUR 9.1 million in cash flowfrom a reduction in inventory
Page 69
On excl. Of non-recurring inventory effect: Free cash flow more than last year
Balance Sheet data
30.09.2008
30.06.2009
30.09.2009
30.09.2008
30.06.2009
30.09.2009
€ 255.6 m.
Assets Liabilities
€ 251.5 m. € 260.7 m.
Long-termassetvalues
Short-termassetvalues
Equity
Long-termdebts
Short-termdebts
€ 255.6 m. € 251.5 m. € 260.7 m.
€ 138.3 m.
54.1%
€ 117.2 m.
45.9%
€ 132.5 m.
52.7%
€ 119.0 m.
47.3%
€ 133.7 m.
51.3 %
€ 127.0 m.
48,7 %
€ 113.6 m.
44.5%
€ 17.9 m.
7.0%
€ 124.0 m.
48.5%
€ 102.2 m.
39,2%
€ 33.3 m.
13.2%
€ 129.5 m.
51.5%
€ 47.3 m.
18,2%
€ 111.2 m.
42,6%
€ 88.7 m.
35.3%
Page 70
Healthy equity structure: 39.2% capital ratio Golden rule of accounting maintained: long-term assets financed
long-term
Segmental report: PhotofinishingQ3/2009 turnover (in EUR m.)
Q3/2008 Q3/2009
53.7 56.6
Central Europe
Q3/2008 Q3/2009
9.5 8.2
Central Eastern Europe
Q3/2008 Q3/2009
12.5 11.3
Benelux
Q3/2008 Q3/2009
14.4 13.1
Western Europe
Seite 71
Page 71
Development in currencies and consumer reluctance reduce turnover mainly in GB and Central Eastern Europe
Reduction in number of unprofitable customers reduces sales in France
+0.7
Segmental report: PhotofinishingQ3/2009 earnings(in EUR m.)
2008 2009 Restructuring 2009 2008EBT before 2009 EBT after restruct. restruct.
Central Europe+11.0+11.3
0,0
1.1
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Western Europe
0.9 0.9
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Central Eastern Europe
+1.0+1.6
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Benelux
0.2
0.0
0.0
0.0
+11.3+11.0
+1.6+2.1 +2.1+1.0+0.7
0.9
Page 72
Segmental report: Retailing
Q3/2008 Q3/2009
27.6
23.0
Retail sales in Q3in EUR millions
EBT in retailing in Q3in EUR millions
Q3/2008 Q3/2009
0.1
0.7
Real: +0.1%Nominal: -16.7%
Page 73
Foreign currency decline alone responsible for decline in sales
Profit and sales profitability clearly enhanced
Backup Q1-Q3/2009
Page 74
Photos in Q1-3
2005 2006 2007 2008 2009
2,726
2,2242,138
1,950 1,876
2005 2006 2007 2008 2009
603
793
1,089
1,267
1,416
2005 2006 2007 2008 2009
2,123
1,431
1,049
683
460
Photos total in Q1-3in millions
Digital photos in Q1-3 (incl. CEWE PHOTO BOOK prints)in millions
Photos from films in Q1-3in millions
+11.7% -3.8%
-32.6%
Page 75
Digital photos in Q1-3
2005 2006 2007 2008 2009
419
512
647675
698
2005 2006 2007 2008 2009
184
281
442
593
718
Digital photos ordered in store (PoS)in millions
Digital photos ordered onlinein millions
+3.5%
Maildelivery 42%
Collection at a store 58%
100% Collection at a store (PoS)
+21.1%
Page 76
252
893
CEWE PHOTO BOOK increases in Q1-3
Number of CEWE PHOTO BOOKS in Q1-3in thousands
+40.7%
2009e market growth: 36%*
Market share increased!
* Source: Future-Source
2006 2007 2008 2009
Page 77
Q1-3 turnover
2005 2006 2007 2008 2009
328.5296.0 303.0 299.3 282.4
Chart Title
Q1-3 turnoverin EUR millions
-5.6%
Page 78
Tax effects in Q1-3
Tax expenditure in Q1-3
in EUR millions
-740%
Earnings after tax in Q1-3
in EUR millions
2005 2006 2007 2008 2009-13.3
-7.4 -7.4-2.4 -4.6
2005 2006 2007 2008 2009
14.2 14.5
5.8
0.5
-3.0
Page 79
Restructuring costs in Q1-3
2005 2006 2007 2008 2009
9.0
3.2
6.4
10.99.5
Chart Title
Restructuring costs in Q1-3in EUR millions
Production in Paris and Teplice
Page 80
Segmental report: PhotofinishingQ1-3 turnover(in EUR m.)
2008 2009
141.2 140.1
Central Europe
2008 2009
23.318.6
Central Eastern Europe
2008 2009
26.6 26.2
Benelux
2008 2009
32.9 32.1
Western Europe
Page 81
Segmental report: PhotofinishingQ1-3 earnings(in EUR m.)
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Central Europe+11.7
-2.5
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Western Europe
-4.0
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Central Eastern Europe
2008 2009 Restructuring 2009 2008 EBT before 2009 EBT after restruct. restruct.
Benelux+1.2
+0.9
0.0
0.0
+15.3
-5.0
-11.7-9.2
+0.9
+11.7+5.5
-0.2
+1.3
-0.3
+1.3+0.1 +1.2
Page 82
Segmental report: Retailing Q1-3
2008 2009
75.365.5
Retail salesin EUR millions
Retail EBTin EUR millions
-13.0%QI-QIII 2008 QI-QIII 2009
0.0
0.8
2008 2009
Page 83
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