Company Presentation CEWE Stiftung & Co. KGaA August 2020...Calendars: 6 formats, 4 paper types, up...
Transcript of Company Presentation CEWE Stiftung & Co. KGaA August 2020...Calendars: 6 formats, 4 paper types, up...
CEWE Stiftung & Co. KGaA
August 2020
CEWECompany Presentation
CEWE acts with clear priorities in Corona crisis
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We focus on health and safety of our employees1
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3
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We secure production capabilities of our laboratories and printing plants
We keep online and mobile sites up and communicate with our customers
We ensure cost reductions and review investments
5
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We prepare the re-start of Retail and Commercial Online-Print
We seek „Corona-upsides“
Means to tackle the Corona crises have been implemented and continuously updated
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▪ Photofinishing: With 13 production plants all over Europe, CEWE is able to digitally route customer
orders to other production sites to produce and ship from there
▪ Shifts are separated from each other to limit a default risk. In the administrative area functions were
separated and relocated accordingly. If possible, CEWE employees are working from home. Nearly
all meetings are carried out by video conference. So far, there is a group-wide visitor and travel stop.
▪ Emphasis on online ordering and mail home delivery as long as POS are closed
▪ Commercial Online-Print: Strengthening of SAXOPRINT’s cost leadership at production site in Dresden
▪ Retail: Development of sales support (incl. technological improvements) to promote reopening
▪ Sourcing of supply products and materials is continuously ensured
▪ Program to reduce costs, (precautionary) registration of short-time work and re-evaluation of all
investment projects
With its long term strategic perspectiveCEWE seems well prepared: CEWE = stability
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Crisis management CEWE acted quickly, courageously and with clear priorities
Strong team All 4,200 CEWE employees are committed to coping with
the crisis
Solid financial foundation Strong balance sheet (cash position and equity ratio)
Diversified portfolio Photo products in the consumer business are more
independent of current shutdowns than business print
Omnichannel provider Even if shops are closed, most CEWE photo products can still
be ordered online for all consumers, and delivery is also direct
to your home
Stay-at-home effect Customers can use the time at home to create photo products
In a nutshell
Corporate Development
Sustainability
Annual results 2019
Results Q2 2020
Share
Agenda
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EUROPE’S LEADING PHOTO SERVICE AND ONLINE PRINTING PROVIDER
From its beginnings in 1912, CEWE has established itself as the first choice as a photo service for anyone looking to
make more of their photos. The company’s CEWE PHOTOBOOK in particular stands for this, with multiple awards and
significantly more than six million copies sold every year. Customers can obtain further personalised photo products
through the brands CEWE, WhiteWall and Cheerz, for instance – and from many leading European retailers. These
brand worlds inspire customers to produce a wide range of creative designs with their personal photos, and customers
entrust the company with around 2.4 billion photos every year.
In addition, for the still young online printing market the CEWE Group has established a highly efficient production
system for printed advertising media and business stationery. Billions of quality printing products reliably reach their
customers via the distribution platforms SAXOPRINT, LASERLINE and viaprinto every year.
The CEWE Group is committed to a sustainable corporate management philosophy which is also supported by the
Neumullers, the company’s founding family and anchor investor, and has been recognised with multiple awards: for
its long-term business focus; its fair, partnership-based relationships with customers, employees and suppliers; and
for assuming social responsibility while pursuing an environmentally friendly approach and conserving resources.
For instance, all CEWE brand products are produced on a climate-neutral basis.
The CEWE Group is present in more than 20 countries, with over 3,800 employees, and its turnover increased to
714.9 million euros in 2019. The CEWE share is listed in the SDAX index.
The CEWE-Group
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Key Indicators CEWE-Group
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Premium Quality with Leading Brands
Business segments of CEWE
2016
Revenuein EUR millions
714.9*
Photofinishing
Commercial
Online-Print
Retail
2019
103.2
568.0
43.7
* including revenue from the "Other" segment in the amount of EUR 5.5 million
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CEWE products: An extensive range of premium products
PRODUCT RANGE
▪ CEWE PHOTOBOOK: 8 formats, 6 paper
types, hard and soft covers with special effects
▪ Prints: 6 formats, enlargements, square prints,
stickers, retro prints, fine-art prints
▪ Wall Art: 9 different materials, from 20x20cm
to 100x150cm, hanging fittings can be included
▪ Calendars: 6 formats, 4 paper types,
up to A2 format
▪ Cards: 8 formats, envelopes included, pre-
made templates or own customized design
▪ Phone cases: 11 different cases, for almost all
phone types, new iPhone and Samsung types
available
▪ Photo gifts: 35 products, 8 different mug types,
for home and office»CEWE offers a 100% satisfaction
guarantee on all products
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Retail Partners in Europe
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▪ CEWE reaches
consumers through
strong retail brands
▪ Retail partners invest
in distribution and
marketing
▪ Retail sales channels
with online retailers and
system partners
Travel business
Grocers
High street
Drugstores
Photo
retailers
Internet retailers
20,000 retail
partners in
Europe
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20,000 retail partners in Europe
19981.977 Stores
Partnersince
600 Stores
1986Partnersince
19962150 Stores
Partnersince 1990
617 Stores
Partnersince 2001
569 Stores
Partnersince
197911.308 Stores
Partnersince 1991
1.135 Stores
Partnersince 1997
735 Stores
Partnersince 2004
160 Stores
Partnersince
1999500 Stores
Partnersince1995
966 Stores
Partnersince2004
533 Stores
Partnersince
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Delivery
in stores &
at home
Marketing
approach
In-Store
maintenance
Storage
(customer
projects)
In-house
productionApp
Desktop
software
Online
software
In-Store
solution
(Kiosk)
Customer
services (24/7)
E-commerce
Website
360° Content
(all channels)
KPI measurement/
dashboard
Boots: First shops up and running
“Boots Photo powered by CEWE”
New strategic partnership in UK and Ireland
Success Factor: CEWE’s omni-channel solution
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PICKUP:
IN STORE
MAILORDER
THE CUSTOMER CAN ORDER:
AT HOME
IN STORE
ANYWHERE
Order at CEWE: Anytime & anyplace
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The customer can choose from 4 order channels:
APP
• Intuitive, quick and easy
• In-app Photo editing
• Automatic layout function
selecting multiple photos
• Options for personalisation
with text and clip-art
DESKTOP
SOFTWARE
• Fully functional software
with extensive editing features
• Ideal for larger photo books
• Save projects offline
• Include QR codes for Videos
in photo books
• Full range of products available
• Pre-made templates
• Cover highlights
• Assistant available
ONLINE
• Easy, convenient
in-browser option
• Includes 6 months
free project storage
• Photo editing options
• Automatic layout function
selecting multiple photos
• Personalisation available
with text and clip-art
• True self service for
customers, simple for store
staff to manage
• Integrated iOS- and Android
card reader
• Easy, fast and intuitive
• New, attractive creative
output products
IN-STORE
The In-Store solution: On-site Printing via Mobile Devices
» Instant print orders
placed via mobile devices
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Success Factor: „Innovation“
3. You have the control and all degrees of freedom
1. We protect your data
2. Our technologies shall help you
4. We are open and transparent
5. We want to shape our future based on European values
Customer Charter: Digitisation with Responsability
Success Factor „Customer Focus“
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Prof. Dr. Dr. h.c. mult. Wolfgang WahlsterProfessor of Computer Science and CEA of the German
Research Center for Artificial Intelligence (DFKI)
Prof. Dr. Susanne Boll-WestermannProfessor of Multimedia and Internet at the Faculty of Computer
Science at the University of Oldenburg
Member of the Board of OFFIS e.V. Institute of Computer
Science
Ranga YogeshwarScience journalist, physicist and moderator
CEWE Customer Charter Advisory Board
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Success Factor „Customer Focus“
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TIPA World Awards for CEWE PHOTOBOOK and WhiteWall
CEWE PHOTOBOOKwith leather and linen cover
The new leather and linen covers provide for an outstanding visual and haptic
experience. They are also an elegant way to protect your most cherished
memories. You can customize your CEWE PHOTOBOOK by adding text and clip
arts as special highlights on the front and back cover.
CEWE PHOTOBOOKHardcover with highlights in rosé-gold
Highlights in rosé-gold are now available as new design elements.
This allows for new markets and target groups to be opened up.
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60 millionth CEWE PHOTOBOOK in 2019
▪ Bestselling photo book in
Europe
▪ CEWE customer Lydia Reich
ordered the 60 millionth
CEWE PHOTOBOOK at
trading partner BIPA in Austria
▪ Since 2005, the CEWE
PHOTOBOOK has been a
bestseller
Thomas Lichtblau (BIPA), Lydia Reich and Ewald Hahn (CEWE)
CEWE Photo Award 2019
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PR-Clippings: CEWE Photo Award 2019
[…] Goodwin ist Jurorin des diesjährigen CEWE
Photoawards: In den über 400.000 Teilnehmern sieht
sie 400.000 Unterstützer ihrer Revolution: „Ich will,
dass mich die Fotos umwerfen.“ […]
IS WELL POSITIONED
CEWE
SMARTPHONES ARE THE MOST IMPORTANT
PICTURE TAKING DEVICES
The essential technology developments for the future
Mobile
Cloud applications
Artificial intelligence
Smart data
Voice control
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Face recognition and objects
» Together with "Places" basis for the CEWE PHOTOBOOK on command
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CEWE PHOTOBOOK on commandPhotokina Concept Car
"Hey CEWE,
create a CEWE
PHOTOBOOK
from our last Sylt
vacation."
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Store. Organise. Edit. Order.
Anytime. Anywhere. On any device.
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CEWE growth phases
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CEWE continues to grow in 2019
Hardware Retail
Commercial Online-Print
Photofinishing Transformation phase
Analogue / Digital
Revenue
714.9EUR mill.
CONCEPTUAL
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Growth in revenue for various product groups
»CEWE PHOTOBOOK and photo gift articles replace single-print revenue
Photo gift articles(e.g. calendars, greeting
cards, wall decoration)
CEWE PHOTOBOOK
Digital prints
Hardware Retail
Prints from films
Commercial Online Print
CONCEPTUAL
Ph
oto
fin
ish
ing
Revenue
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Operational Photofinishing EBIT margin* continues to increase
7.8%
8.6%9.0%
9.5%10.2% 10.5%
11.7%11.9% 12.1%
12.4%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
* without special items shown in segment reporting (mainly PPA-effects)
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Photobook market in Western Europe
»Market leader CEWE: CEWE PHOTOBOOK with 23% market share (volume)
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Brand overview CEWE photofinishing
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Brand-marketing: Broad media-mix
»Multi-channel brand-marketing for CEWE PHOTOBOOK
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CEWE PHOTO BOOK: Customers‘ voices
Frau Platzek (D) Frau Jaworski (D)Familie Wartmann (D)
Familie Voigt (D)Familie Oppenheimer (D)Familie Barth (D)
Familie Stäger (CH)
Familie Caillou (FR)
Familie Koers (NL) Frau Benedikt (AT)
Frau Gantzhorn (DK)
Frau Jentzsch (D)
Frau Bergmann (D)
Frau Broeks (D)
Familie Baur (D)
Familie Fauster (AT)
Familie Grove (UK)
Familie Safijanski (PL) Familie Majewski (PL)
Familie Martincovi (CZ) Familie Rehovi (CZ)
Familie Brunovi (SK) Frau Liskova (SK)
Familie Sasvari (HU)
Familie Mosebo (NO)
» Real customers as CEWE-(brand-) ambassadors
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»All countries with a positive development
»Yet chances to grow brand awareness in many countries
Brand Awareness “CEWE PHOTOBOOK”
Unaided brand awareness [%]
Base: Online Population Age 18 upwards; Persons who ever heard about photobooks; in %. Source: Nielsen
Question 3a: Which photobook manufacturers or suppliers do you know of, at least by name?
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Worldwide camera production figures from 1947 to 2018
0
1.5 bn.
0
120 m.
… incl. smartphones
» Smartphones are the most important
devices for taking pictures
Camera production volume …
Analogue cameras
Digital cameras
Smartphones
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Share of smartphone images in CEWE production
» First time more than every second image in CEWE production
» Two out of three images printed at the CEWE PHOTOSTATION
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I M P R I M E U R S D E S O U R I R E S
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Positioning of Cheerz
MOBILFRANCE
SPAIN & ITALY
TARGET GROUP
FEMALE 20-40 YEARS
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Cheerz is the # 1 photo printing appin France, Spain and Italy
And the # 7 of all free appsin France
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Heart magnets
Retroprints
Big Fat Box
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WhiteWall – The Company
Personalised wall art prints
Customers create
wall art from their own photos
In-house production
for WhiteWall and LUMAS
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Webshop
with delivery in 46 countries
Own stores
in Berlin, Dusseldorf, Hamburg & Munich
Shop-in-Shop @ LUMAS
in Frankfurt, Cologne, New York, Paris, Zurich & Vienna
WhiteWall – A premium multichannel provider
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Small editionsIndustrial Printer Metropolregion
Berlin
The CEWE online print brands
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» Business and advertising prints: flyers, business cards, stationery,
packaging, promotional items, etc.
Print market in Germany (job printing)
0.1 0.1 0.1 0.2 0.3 0.4 0.6 0.7 0.8 0.9
6.1 6.25.6 5.3 5.1 4.9 4.5 4.3 4.1 3.9
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Offline Print
Online Print
Market volume job printing in Germany in EUR billions
Source: Market: Statistisches Bundesamt, bvdm
Online Print: Top 5 Creditreform + Top 6-20 & Vistaprint; estimation CEWE
6.2 6.3
5.75.5 5.4 5.3
»Online print market is increasing
5.1 5.0 4.9 4.8
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Benefits of Online Printing
»The internet makes printing more efficient
The sum of all advantages are directly handed over to our customers:
Significant price advantage
Printing quality
Service quality/personal contact person
Standard artwork check included
Acceptance of print data until 6pm for next day delivery
Environmentally conscious printing
Reseller benefits
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» The benefit results from a maximum utilisation of the printing paper, less
waste per order and lean processes
3
11
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Economies of scale in the production of trimmed and folded goods
A
C
D
FE
B
A
FE
Portal / e-commerce Printing Finishing Despatch
Many standardised orders
are collected via the portals in
a short time
Maximum utilisation by
generating a collected form
for printing in depth
Highly automated finishing for
trimmed and folded goods
Direct shipment of individual
orders (A-F)
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3
B
C
33D
Cost of printing plate and set-up costs are
borne by a large number of orders!
No sorting required:
every order placed by
a customer is
automatically sorted
and stacked!
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Heidelberg XL 162-8-P
Technical difference between offset and digital printing
Colour
Paper
Offset printing
▪ High one-off costs for producing the cylinder
▪ Low variable printing costs
Digital printing
Colour
Paper
Cleaning
Electric charge
▪ No one-off costs for producing the cylinder
▪ Moderate variable printing costs
Cleaning
Printing plate that determines
where colours stick; is etched
into a colour-carrying cylinder
» Elimination of one-off costs for producing the cylinder
with digital printing makes print runs 1 cost-effective 56
»CEWE operates with webshops in 10 different countries
CEWE’s Commercial Online-Print activities in Europe
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1.4
43.0
59.870.5
77.884.0 84.0
101.6 103.2
2011 2012 2013 2014 2015 2016 2017 2018 2019
Commercial Online-Print
»Commercial Online-Print with increase in 2019
Revenue (in Euro millions)
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CEWE´s retail business
Retail segment contains hardware revenue only, photofinishing revenue is shown in
photofinishing segment
Own retail business provides an excellent window to the market
▪ 147 retail stores
▪ EUR 43.7 million revenue (2019) with
photo-hardware (cameras, lenses, …)
▪ Sales of photofinishing products in
photofinishing segment
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Retail strategy
»Focus on photofinishing products in CEWE-retail shops
»Adjustments in hardware pricing and product range to improve margins
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EBIT Developmentin Euro millions
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 e2019
28.329.427.2
17.9
11.2
28.9
32.6
36.4
51
58
47.049.2
55.7
EBIT 2019:
57.8 Euro millions
* 2018 updated EBIT without futalis acc. to IFRS 5
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CEWE growth phases
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CEWE continues to grow in 2019
Hardware Retail
Commercial Online-Print
Photofinishing Transformation phase
Analogue / Digital
Revenue
714.9EUR mill.
CONCEPTUAL
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CEWE recognized by Deloitte, Wirtschaftswoche, Credit Suisse and BDI
63
64
Due to corona situation, no targets for 2020 have been set so far
CEWE PY 2019 Pre-Corona Perspective 2020
Photos billion photos 2.40 2.4 to 2.5
CEWE PHOTO BOOK millions 6.62 6.7 to 6.9
Investments Euro millions 39.3 57
Revenue Euro millions 714.9 725 to 755
EBIT Euro millions 57.8 58 to 64
EBT Euro millions 54.3 56.5 to 62.5
Earnings after tax Euro millions 31.8 38 to 43
Earnings per share Euro 4.41 5.34 to 5.90
CEWE is stable and expects to achieve a solid annual result in 2020, as well
How the corona pandemic will continue to impact the company's business in the next few
months cannot be predicted reliably – within the usual confidence interval
Q3, in which turnover as a percentage of annual sales has already been declining for years,
could see an additional negative impact in 2020 resulting from changed holiday-travel behavior
due to the coronavirus
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
28%
Shareholders
taking
decisions
28% of shares
are represented
in management
and supervisory
board
»Reliable stability, growing profitability, growth ahead
CEWE Equity Story
Strong equity ratio Solid cash position Stable also in weak economy
53.6%Dec 31, 2019
(w/o IFRS 16)
net cash@ year end
Growth 2009
+1.8%
-4.2%
Euro 17
CEWE revenue
FX-adjusted
Reliable stability
Operational Photofinishing EBIT margin
Natural consolidator in
Photofinishing
Growth opportunities in many
European countries (Ex-DACH)
Mobile & AI will support business
Growth ahead
Emerging Business:
Commercial Online-Print
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
57% unaided brand awareness
75% aided brand awareness
(in Germany,Source
Nielsen Panel 2018)
EBIT Commercial Online-Print
Growing profitStrong brand awareness Commercial Online-Print
Increasing profitability protects price started to support EBIT
-2.8-4.8
-7.0
-2.9-0.9
1.6 1.6
-1.6-2.7*
2011 2012 2013 2014 2015 2016 2017 2018 2019
Reliable Dividend
Dividend per share[EUR]
ROCE[%]
Strong ROCE
EPS
Earnings per share[EUR]
2013 2014 2015 2016 2017 2018 2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
7.8%
12.4%
15.0%19.6%*
5.11*
2.02
1.00
2.00*
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* recommendation of supervisory board
and board of management to AGM 2020
* w/o IFRS 16 and restructuring costs
2008 2019
2013 2019
2010 2019
* w/o restructuring costs
2010 2019
2011 2019
* w/o restructuring costs
Page 66
In a nutshell
Corporate Development
Sustainability
Annual results 2019
Results Q2 2020
Share
Agenda
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Hardware Retail
Commercial Online-Print
Photofinishing
Revenue development 1990 to 2014
Corporate development: Early innovations as key success factor
CEWE invents the
„Photo Index“ as first
digitally produced picture
CEWE
installs
first photo
terminal
worldwide
First online
webshop
for photo
products
by CEWE
Add-on of
competencies:
web-based
digital printing
for professionals
CEWE starts
M&A discussions
in business
printingCEWE
introduces
Viaprinto
CEWE acquires Saxoprint
and introduces CEWE-PRINT
»Each growth area needs patience … and long-term perspective
CEWE introduces the
„Photo-CD“ (digitization of
analogue films and prints)
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Corporate development: Expanding in adjacent growth areas
» In order to avoid cannibalization, CEWE is targeting adjacent
growth (in addition to continuous innovation of the core business)
»Even in core business: Continuous innovation
Core Growth Options
Analogue
Photo-
finishing
Digital
Photo-
finishing
Silver-halide
Processing
Digital
Printing
Technology Technology
Commercial
Online-Print
Technology Technology
Additional
online
business
with mass
customization
approach
Offset
PrintingAdd-on/new
production
technology
Customers Customers Customers Customers
Retailers Retailers
End-Consumers
Business Customers New & existing
customer groupsNEW
NEW
NEW
NEW
NEW
NEW
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Start-up screening logic: In search of adjacent growth
»Start-up characteristics: CEWE‘s well-known areas of expertise,
but also new ground in adjacent areas
Potential new businessCEWE competences
▪ Online business model
▪ Mass Customization
▪ Outstanding high-quality products with
substantial customer benefit (USP)
▪ Strong brand building
▪ Capability to scale businesses internationally
▪ Potential to leverage strong retail relationships
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Page 70
In a nutshell
Corporate Development
Sustainability
Annual results 2019
Results Q2 2020
Share
Agenda
Rating by sustainability intelligence
71
Principles of our sustainable actions
»CEWE assumes responsibility
Corporate responsibility
Future economic viability
Protection of resources and the environment
Responsibility for employees
Social commitment
1
2
3
4
5
"Dialogues with our
employees and stakeholders
are firmly anchored in our
sustainability strategy."
▪ Dialogues with stakeholders for a
materiality analysis
▪ Compliance with regulations,
norms and laws (orientation
towards the "honourable
businessman")
▪ Partnerships and memberships in
important institutions and
associations
► CEWE's approach is based
on long-term business
success
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Future economic viability: sustainable financial management
Financial management ensures that operational functions are free of financial
constraints
▪ Added value from operative business and not from financial fine-tuning
▪ Securing the long-term success of the Group
▪ Financial resources provide considerable scope for decision-making
▪ Decisions solely on the base of operative and strategic benefit
"CEWE thinks
decades"
Long-term security & strategic freedom
Sound debt financing: considerable proportion of long-term lines
▪ Trustworthy, long-term banking relationships
▪ Healthy mix of long-term and short-term loan periods
▪ Sufficient amount of unused credit facilities
Strong balance: high capital ratio
▪ Not dependent on the current financial market situation
▪ Stability: no reduction in the capital ratio in order to increase returns
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2
Don't be afraid of investments, but have a sense of proportion and sound judgement
Ensuring major investments with investment calculations
▪ Subsequently checking and assessing major investments
▪ Financial margins permit the exploitation of special offers for long-term advantages
▪ No speculative investment of available liquid resources
Investments
Investors with long-term perspectives are addressed
▪ Active communication of long-term perspectives to investors
▪ Targeted contacts to investors with a long-term focus
Investor relations
Cost-awareness
Cost-awareness typical for medium-sized companies at CEWE
▪ Exploiting internal competences/resources
▪ Check of various alternatives
Future economic viability: sustainable financial management
74
2
»CEWE combines the advantages of stock-exchange listed companies and family enterprises
Less short-term quarterly mindset obliges
Focus on a few core areas ...
... in which the management is an expert
No principal-agent problems
mainly organic growth, only minor acquisitions
Sound financing
Transparent information policy
Focus on earnings
Large-scale investment in digital technology in
order to secure the future of the company
Photofinishing as the core area of business;
new area with positive synergies
Anchor persons in the management have shaped
the development of the industry for many years
Board of Management and Supervisory Board
with large share ownership
Only "digestible" acquisitions
Sound equity ratio
Comprehensive available credit lines
Comprehensive IR activities
Profit in each year of transformation
Advantages
+
+
+
+
+
+
Situation at CEWE
+
+
Fa
mil
y e
nte
rpri
se
Stock-
exchange
listed
company
✓
✓
✓
✓
✓
✓
✓
✓
Future economic viability: Advantages of
family-run, stock-exchange listed companies
27.3%
0.8%Board of management and
remaining supervisory board
Joint heirs of company founder
(represented in supervisory board)
CEWE
shareholder
structure
75
2
»Environmental protection is an ongoing process at CEWE
"Our initiatives all have one goal: sustainable CO₂ reductions."
▪ Save energy
▪ Conserve resources
▪ Recycling
▪ Ecological product optimisations
▪ Cooperation with nature conservation associations
(e.g. NABU, WWF)
Protecting resources and the environment
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3
"Our focus is on our employees and their families."
»CEWE has been distinguished for its family friendliness
▪ Combining a career and a family
(CEWElino)
▪ Diversity and equal opportunities
▪ Vocational and in-service training
▪ Employee-shareholder
▪ Safety at work and health
protection
▪ Employee participation and
satisfaction
Responsibility for employees
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4
"Acting responsibly on behalf of society and social commitment are part of our self-conception."
»CEWE is firmly rooted in its social environment
▪ Promotion of young talent
▪ Social commitment at all the CEWE
locations
▪ Support for staff members working in
an honorary capacity
▪ Cooperation with SOS children's
villages all over the world
▪ Retaining the cultural asset of
photography
Social commitment
11 cooperations with
▪ Germany (Düsseldorf, Schwarzwald,
Ammersee, Worpswede)
▪ Poland (Siedlce)
▪ Hungary (Budapest)
▪ Czech Republic (Medlanky)
▪ Norway (Berge)
▪ Austria (Moosburg)
▪ France (Saint-Luce-sur-Loire)
▪ Belgium (Cantevent)
78
5
Page 79
In a nutshell
Corporate Development
Sustainability
Annual results 2019
Results Q2 2020
Share
Agenda
2019 EBIT continues the trend of increasing earningsin Euro millions
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 e2019
28.329.427.2
17.9
11.2
28.9
32.6
36.4
51
58
47.049.2
55.7
EBIT 2019:
57.8 Euro millions
* 2018 updated EBIT without futalis acc. to IFRS 5
80
CEWE Group Targets 2019 achieved
Rounding differences might occur.
* Operative investments without potential investments in expanding the business volume, corporate acquisitions, additional customer-base acquisitions and IFRS 16 leasing additions
** Adjusted by Euro 5.0 million in restructuring costs at LASERLINE, which are not tax-reducing due to the also operationally negative LASERLINE result
Targets PY 2018 Target 2019 Actual 2019
Photos billion photos 2.23 2.22 to 2.26 2.40
CEWE PHOTO BOOK millions 6.18 6.24 to 6.31 6.62
Investments* Euro millions 49.6 around 55 39.3
Revenue Euro millions 649.9 675 to 710 714.9
EBIT Euro millions 55.7 51 to 58 57.8
EBT Euro millions 55.3 50.5 to 57.5 54.3
Earnings after tax
Adjusted earnings after tax**
Euro millions 36.3 35 to 39 31.8
36.8
Earnings per share
Adjusted EPS**
Euro 5.06 4.74 to 5.40 4.41
5.11
✓
✓✓
✓
✓
✓
81
6,048 6,207 6,024 6,1826,624
2015 2016 2017 2018 2019
CEWE PHOTOBOOK
Rounding differences may occur.
Number of CEWE PHOTOBOOKS
in thousands+7.2%
Target 2019:
+1% to +2%
»CEWE PHOTOBOOK with significant growth – more than expected
82
2.235 2.232 2.175 2.226
2015 2016 2017 2018 2019
Total printsin millions
2.401
18.5720.25
21.1222.42
2015 2016 2017 2018 2019
Value per photoin Euro cent / photo
23.65414.9
452.0 459.3
499.0
2015 2016 2017 2018 2019
Turnover Photofinishingin Euro millions 568.0
Number of prints and turnover Photofinishing
Rounding differences may occur.
»Volume development exceeds expected Volume
»Rising share of value-added-products increases turnover per photo
»WhiteWall supports increase of turnover per photo
+5.5% +13.8%+7.9%
Target 2019:
+0% to +2%
83
103.5
2015 2016 2017 2018 2019
75.585.5 85.6
94.5
Photofinishing-Turnover by QuarterSeasonal distribution: CEWE 2015 to 2019 – Share in turnover by quarter as a million
Q2 Target
88.4 to 94.3 Euro mill.
Q2 Actual
97.2 Euro mill.
✓
Q1 Target
97.1 to 104.0 Euro mill.
Q1 Actual
103.5 Euro mill.
✓
Q3 Target
101.4 to 108.2 Euro mill.
Q3 Actual
116.2 Euro mill.✓
97.2
2015 2016 2017 2018 2019
72.6 81.1 82.1 85.9 100.4
116.2
2015 2016 2017 2018 2019
91.5 95.4 96.3
Q4 Target
233.1 to 248.5 Euro mill.
Q4 Actual
251.1 Euro mill.✓
251.1
2015 2016 2017 2018 2019
175.3190.0 195.4
218.3
Turnover
target 2019
520 to 555 m€*
* planned group turnover w/o target turnover of segments retail, commercial online-print and other.
Rounding differences may occur.
2019 Actual
568.0 m€ ✓
»Turnover in Photofinishing exceeds target
84
Business segment Photofinishingin Euro millions
+13.8%
+15.7%
414.9 452.0 459.3 499.0 568.0
2015 2016 2017 2018 2019
Turnover
40.2 52.0 53.9 57.8 66.9
2015 2016 2017 2018 2019
EBIT
»Photofinishing grows in core business, with
acquisitions also driving the increase in sales
»EBIT increases again Rounding differences may occur.
▪ Photofinishing grew by a strong 13.8% in 2019, the acquired
wall art specialist WhiteWall was contributing to this growth
▪ 2019 started with another stronger first quarter, followed by a
second quarter with the weather "more order-friendly" to result in
renewed growth, contrary to the trend of seasonal shifting in
previous years. The third and fourth quarters also maintained
this development, with growth in core business and with
acquisitions.
▪ Photofinishing EBIT grew by a strong 9.1 million euros in 2019
▪ 2019 special effects: -3.6 million euros
− PPA effects from DeinDesign purchase price allocation: -0.4 million euros
− PPA effects from Cheerz purchase price allocation: -1.9 million euros
− PPA effects from WhiteWall purchase price allocation: -1.2 million euros
▪ Special effects in the previous year of 2018: -2.3 million euros
− PPA effects from DeinDesign purchase price allocation: -0.4 million euros
− PPA effects from Cheerz purchase price allocation: -1.8 million euros
− Sale of former operation in Nuremberg: 1.2 million euros
− photokina trade-show presentation one-off costs: -1.3 million euros
85
Operational Photofinishing EBIT margin* continues to increase
7.8%
8.6%9.0%
9.5%10.2% 10.5%
11.7%11.9% 12.1%
12.4%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
* without special items shown in segment reporting (mainly PPA-effects)
86
Q3 Actual
+0.8 Euro mill.
Photofinishing-EBIT by QuarterSeasonal distribution: CEWE 2015 to 2019 – EBIT by quarter in Euro million
Q1 Target
+2.3 to +2.6 Euro mill.
EBIT target 2019
Photofinishing
50.5 to 57.5 Euro mill.*
Q1 Actual
+3.0 Euro mill.✓
Q2 Target
- 1.8 to -2.0 Euro mill.
Q2 Actual
-1.2 Euro mill.✓ ✓✓ ✓
Q3 Target
+ 1.0 to +1.2 Euro mill.
Q4 Actual
+64.3 Euro mill.2019 Actual
+63.7 Euro mill. ✓
-0.4
1.2 1.3 1.4 3.0
2015 2016 2017 2018 2019
-2.1 -0.5
0.2
-1.8 -1.2
2015 2016 2017 2018 2019
✓
Q4 Target
+ 49.0 to +55.7 Euro mill.
* 51.0-58.0 Euro mill. group EBIT-target less planned retail, online printing and from segment Others.
Rounding differences may occur.
»EBIT in Photofinishing exceeds target
3.8 5.6 4.1 2.6 0.8
2015 2016 2017 2018 2019
39.345.9 48.3
55.6
64.3
2015 2016 2017 2018 2019
87
Business segment Retail*in Euro millions
-10.3%
-0.7% +1.1% +0.5% +0.1% +0.1% of tunrover
60.8 54.9 53.0 48.7 43.7
2015 2016 2017 2018 2019
Turnover *
-0.4
0.6 0.3 0.1 0.0
2015 2016 2017 2018 2019
EBIT *
* only hardware, no photofinishing
Rounding differences may occur.
▪ Retail hardware sales further reduced strategically (through
focussing on photofinishing business and abandoning low-
margin hardware business)
▪ In spite of a decline in turnover, the focus on margins sees
earnings, at TEUR 35, at exactly the same level as in the
previous year (2018: TEUR 55)
»Hardware turnover reduced in line with strategy in 2019 as well
»EBIT at the same positive level as in the previous year in spite of a decline in turnover
88
Business segment Commercial Online-Print
89
in Euro millions
+1.6%
-1.2% +1.9% +2.0% -1.5% -7.5% of turnover
77.8 84.0 84.0101.6 103.2
2015 2016 2017 2018 2019
Turnover
-0.9
1.6 1.6
-1.6
-7.72015 2016 2017 2018 2019
EBIT
»COP turnover increased moderately in 2019
»LASERLINE situation results in a significant decline in profits
▪ Commercial online printing increased by 1.6% in 2019. At the
same time, weak LASERLINE sales, mainly as a result of price
pressure, put a damper on growth.
▪ EBIT decreases significantly, mainly due to the LASERLINE
situation (negative operative EBIT and restructuring costs of -
5.0 million euros)
▪ 2019 special effects: -5.6 million euros
− PPA effects from Saxoprint purchase price allocation: -0.2 million euros
− PPA effects from Laserline purchase price allocation: -0.3 million euros
− LASERLINE restructuring provisions: -5.0 million euros
▪ Special effects in the previous year of 2018: -1.9 million euros
− PPA effects from Saxoprint purchase price allocation: -0.6 million euros
− PPA effects from Laserline purchase price allocation: -0.4 million euros
− Laserline integration costs: -0.9 million euros
Rounding differences may occur.
Business Segment Other
90
in Euro millions
▪ The 5.5 million euros in reported
turnover is to be exclusively allocated to
futalis (2018: 4.0 million euros)
▪ EBIT above all improved by futalis
+38.8%
0.62.2
3.04.0
5.5
2015 2016 2017 2018 2019
Turnover
-2.4
-7.2 -6.6
-2.6 -2.3
2015 2016 2017 2018 2019
EBIT
Rounding differences may occur.
»Segment for other business raises turnover and improves earnings
Structural and corporate costs and profits arising
from real estate property and the acquisition of
stocks are shown in the "other" business segment.
414.9452.0 459.3
499.0568.0
77.884.0 84.0
101.6
103.2
60.854.9 53.0
48.7
43.7
0.62.2 3.0
2015 2016 2017 2018 2019
Photofinishing Commercial Online-Print Retail Other
Turnover
91
599.4
714.9649.3
554.2593.1
+10.1%fx-adj.: +10.2%
target: +3% to +9%
Retail:
-10.3%
(fx-adj.: -8.8%)
Commercial
Online-Print:
+1.6%
(fx-adj.: +1.4%)
Photofinishing:
+13.8%
(fx-adj.: +13.8%)
in Euro millions
»Photofinishing accounts for the rise in Group turnover
Rounding differences may occur.
EBIT
92
36.4
47.049.2
55.757.8
40.2
52.0 53.957.8
66.9-1.0
1.61.6
-1.6
-7.7
-0.4
0.6
0.1
0.1
-2.4
-7.2-6.6
-1.4
2015 2016 2017 2018 2019
EBITin Euro millions
Sonstiges
Einzelhandel
KommerziellerOnline -Druck
Fotofinishing
Target 2019:
51 to 58 million
euros
6.6%
8.0% 8.2%8.6%
8.1%
9.4%*
2015 2016 2017 2018 2019
EBIT-Marginin %
»EBIT target corridor for 2019 clearly reaches its ceiling
»Operative Group EBIT margin increases to 9.4%
* before one-off effects resulting from purchase price allocations (-1.2
million euros) and LASERLINE restructuring costs (-5.0 million euros)
Rounding differences may occur.
Other
Retail
Commercial
Online-Print
Photofinishing
Earnings after tax
93
21.8
29.6
32.8
36.3
31.8
36.8*
2015 2016 2017 2018 2019
in Euro millions
»LASERLINE restructuring sees earnings after tax decline to 31.8 million euros; when
adjusted for LASERLINE restructuring costs after-tax earnings rise to 36.8 million euros
* Adjusted for LASERLINE restructuring costs
Rounding differences may occur.
3.05
4.12
4.54
5.01
4.41
5.11*
2015 2016 2017 2018 2019
Earnings per sharein Euro
94
Target 2019:
4.74 to 5.40
Euro/share
»Earnings per share fall short of the target corridor; within the target corridor
when adjusted for LASERLINE restructuring costs
* Adjusted for LASERLINE restructuring costs
Rounding differences may occur.
141.6 148.4 151.7 182.6 202.1
29.5 29.1 29.435.4
95.4186.3 203.4 225.0
254.2
269.8
2015 2016 2017 2018 2019
Liabilitiesin euro millions
173.3 192.4 184.5 185.5 190.2
184.1188.6 221.5
286.7
377.0
2015 2016 2017 2018 2019
Assets in euro millions
Balance Sheet
95
381.0406.1
472.2567.3
357.3= 47.6%
Equity ratio
= 53.8%
Equity ratio
381.0406.1
472.2
567.3
357.3
IFRS 16 right of use Leasing
first-time application + € 62.7 m.
WhiteWall acquisition + € 36.4 m.
WhiteWall acq.
+ € 4.9 m.
IFRS 16 long-term
leasing liability
+ € 52.5 m.
IFRS 16 kshort-term.
leasing liability
+ € 10.6 m.
WhiteWall acq.
+ € 4.3 m.
»New leasing standard and the acquisition of WhiteWall cause
increase in the balance sheet total
»Equity ratio strong at 47.6%, w/o IFRS 16 even at 53.6%
Rounding differences may occur.
Non-current
liabilities
Non-current
assets
Current
assets
Equity
Current
liabilities
From Balance Sheet to Management Balance Sheet
96
Non-current assets
Current assets
Equity
Non-current
liabilities
Current
liabilities
Non-current
assets
Working Capital
Equity
Gross financial
liabilities
Non-operating
liabilities
Short-term operative debts/
non-interest-bearing liabilities:
190 Euro millions
Balance Sheet total: 567 Euro millions
Balance Sheet total: 377 Euro millions
»The Balance Sheet total is reduced to capital
elements "to be paid for" (by way of dividends or
interest) in the management balance sheet
Balance Sheet Management Balance Sheet
27.7 29.1 29.4 34.3 41.9
6.7 0.2 1.6 3.8 65.0
186.3 203.4 225.0254.2
269.8
2015 2016 2017 2018 2019
Capital Investedin Mio. €
14.9-4.3 -4.3 -22.5 -32.8
21.7 48.6 38.8 28.1 32.4
184.1 188.6 221.5286.7
377.0
2015 2016 2017 2018 2019
Capital Employedin Mio. €
Management-Balance Sheet
97
292.3
376.6
220.7232.8
256.0
292.3
220.7 232.8256.0
376.6
Rounding differences may occur.
IFRS 16 right of use
Leasing + € 62.7 m.
WhiteWall acq. + € 36.4 m.
IFRS 16 leasing
liability + € 63.0m.
»Non-current assets and gross financial debts increase due to IFRS 16
»Net working capital negative due to again higher Christmas business
Cash
Non-current
assets
Net
Working
Capital
Equity
Gross financial
liabilities
Non-operating
liabilities
59.6
93.0
75.3 78.7
102.1
2015 2016 2017 2018 2019
Cash Flow from operative businessin Euro millions
-55.2-46.6
-70.2-76.2
-67.2
2015 2016 2017 2018 2019
Outflow of funds from investment activitiesin Euro millions
4.4
46.4
2.2 2.5
34.9
2015 2016 2017 2018 2019
Free cash flow in Euro millions
Free cash flow
98
=+27.9 million
euros invested
in Saxopark
Acquisition payments
-30.7 million euros for Cheerz and
-7.7 million euros for Laserline,
-4.7 million euros for the new
premises in Oldenburg
+9.5 million euros from
IFRS 16 effect
» Increase in EBITDA raises cash flow from operative business
»Acquisitions almost double the cash flow from investment activities of earlier years
»Free cash flow reflects increase in cash flow from operations
WhiteWall acquisition
32.8 million euros
Rounding differences may occur.
36.4
47.049.2
55.757.8
2015 2016 2017 2018 2019
12-months-EBIT in Euro millions
211.8 220.1242.6
300.9
384.3
2015 2016 2017 2018 2019
Average capital employed in the past 4 quartersin Euro millions
17.2%
21.4%20.3%
18.5%
15.0%
19.6%**
2015 2016 2017 2018 2019
ROCE * in %
ROCE
99
=
* ROCE = EBIT / Capital Employed. Rounding differences may result
** Before IFRS 16 balance sheet extension and LASERLINE restructuring costs
»Average capital employed increases to 384.3 million euros through IFRS 16 and WhiteWall acquisition
»Positive development of earnings sees ROCE before IFRS 16 and restructuring increasing to 19.6%
In a nutshell
Corporate Development
Sustainability
Annual results 2019
Results Q2 2020
Share
Agenda
101
Photofinishing overcompensates corona-driven declines in
COD and Retail: EBIT in Q2 EUR 2.4 million ahead of PY
▪ Turnover in Photofinishing rose also due to coronavirus-related “stay-at-home” effect by strong
13.8% to EUR 110.6 million, EBIT improved by exceptional EUR 6.3 million to EUR 5.1 million.
Sales of the CEWE PHOTOBOOK increased by 11.1% to 1.37 million copies. Besides additional
contributions to profits from the increase in sales, the cost-reduction programme initiated as early as
in March also improved the EBIT.
▪ Commercial Online-Print is significantly affected by the corona crisis, turnover at EUR 10.9
million is 56.5% below the previous year's level. Efficient cost management and the conversion to
performance-oriented depreciation kept the decline in earnings under control: EBIT of EUR -2.8
million is EUR 1.7 million weaker than in the previous year.
▪ The corona shutdown hits (Hardware-)Retail, turnover declines by 28.8% to EUR 7.6 million.
Continuation of the optimisation strategy accelerated: EBIT of EUR -3.2 million includes EUR -1.7
million for shop closures and EUR -1.5 million value adjustments on stocks.
▪ Group EBIT is EUR 2.4 million ahead of last year’s EBIT: EUR -1.0 million (Q2 2019: EUR -3.4
million). All in all a good second quarter.
81.1 82.185.9
97.2
110.6
2016 2017 2018 2019 2020
Turnover Photofinishingin Euro millions
18.3619.36 19.85
21.46
23.78
2016 2017 2018 2019 2020
Value per photoTurnover / photo(Euro cent / photo)
442424 432
453 465
2016 2017 2018 2019 2020
Total printsin millions
Number of prints and turnover Photofinishing Q2
102Rounding differences may occur.
Rising share of value-added-products increases turnover per photo
WhiteWall supports increase of turnover per photo
+10.8%
+13.8%
+2.7%pre-corona
perspective 2020:
+2% to +4%
166.6 167.7180.3
200.8
225.3
2016 2017 2018 2019 2020
Turnover photofinishingin Euro millions
18.0219.46 20.07
20.93
23.15
2016 2017 2018 2019 2020
Value per photoTurnover / photo(Eurocent / photo)
924
862898
959 973
2016 2017 2018 2019 2020
Total printsin millions
Number of prints and turnover Photofinishing H1
103
Rounding differences may occur.Rising share of value-added-products increases turnover per photo
WhiteWall supports increase of turnover per photo
+10.6%
+12.2%+1.5%pre-corona
perspective 2020 :
+2% to +4%
2,474
2,2792,369
2,566
2,732
2016 2017 2018 2019 2020
1,197
1,120 1,121
1,232
1,369
2016 2017 2018 2019 2020
CEWE PHOTOBOOK Q2 und H1
104
Rounding differences may occur.
Number of CEWE PHOTOBOOKS Q2
in thousands +11.1%pre-corona
perspective 2020:
+2% bis +4%
CEWE PHOTOBOOK with strong growth in Q2 also due to corona-related “stay-at-home”effect
Number of CEWE PHOTOBOOKS H1
in thousands +6.5%pre-corona
perspective 2020:
+2% bis +4%
105
Photofinishing-Turnover by QuarterSeasonal distribution: CEWE 2016 to 2020 – Share in turnover by quarter as a million
Photophinishing turnover in Q2 is clearly above the range of pre-corona perspective* for 2020
Q1 pre-corona
perspective*
111.7 to 116.5 m€
Q1 Actual
114.7 m€ ✓
Turnover pre-corona
perspective* 2020
approx. 588 to 613 m€**
* due to corona situation no targets have been set for 2020 so far
** group turnover w/o targets of segments retail, commercial online-print and other.
Comparison
against pre-corona
perspective* 2020!Rounding differences may occur.
2016 2017 2018 2019 e2020
114.7
85.5 85.6 94.5103.5
2016 2017 2018 2019 e2020
110.6
81.1 82.1 85.9 97.2
2016 2017 2018 2019 e2020
116.2
95.4 96.3 100.5
2016 2017 2018 2019 e2020
251.1
190.0 195.4218.3
Q2 pre-corona
perspective*
100.0 to 104.2 m€
Q2 Actual
110.6 m€ ✓
Business segment Photofinishing Q2
106
+13.8%
in Euro millions
81.1 82.1 85.9 97.2 110.6
2016 2017 2018 2019 2020
Umsatz
-0.7
0.2
-1.8 -1.2
5.1
2016 2017 2018 2019 2020
EBIT
Rounding differences may occur.
Coronavirus-related “stay-at-home” results in
additional sales in Q2 and, together with cost
reductions, in a considerable improvement to earnings
▪ Photofinishing also grew thanks to the coronavirus-related “stay-
at-home” effect (customers used the time spent at home to order
photo products - including products using older photos from the
past) by a good 13.8% in Q2
▪ Acquired wall-art specialist WhiteWall still contributed non-
organically to this growth in April and May
▪ Photofinishing EBIT grew by a highly presentable 6.3 million
euros
▪ Besides additional contributions to profits from the increase in
turnover, the cost-reduction programme initiated as early as in
March also improved the EBIT against that of the previous year
▪ Q2 2020 special effects: -1.1 million euros
− Effects from the DeinDesign purchase-price allocation: -0.1 million euros
− Effects from the Cheerz purchase-price allocation: -0.5 million euros
− Effects from the WhiteWall purchase-price allocation: -0.5 million euros
▪ Previous-year special effects in Q2 2019: -0.7 million euros
− Effects from the DeinDesign purchase-price allocation: -0.1 million euros
− Effects from the Cheerz purchase-price allocation: -0.5 million euros
− Effects from the WhiteWall purchase-price allocation: -0.1 million euros
Turnover
▪ Photofinishing grew by a very positive 12.2% in Q2 2020, with
acquired wall-art specialist WhiteWall still contributing non-organically
to this growth in the period from January to May
▪ As of mid-March the coronavirus pandemic also had an impact on
photofinishing: Instant-print POS business was affected by shop
closures, while online photofinishing business saw the “stay-at-home”
effect having a positive influence on incoming orders
▪ Photofinishing EBIT grew by a highly presentable 6.6 million euros
▪ Besides additional contributions to profits from the increased
turnover, the cost-reduction programme initiated as early as in March
also improved the EBIT against that of the previous year
▪ HY1 2020 special effects: -2.2 million euros
− Effects from the DeinDesign purchase-price allocation: -2.2 million euros
− Effects from the Cheerz purchase-price allocation: -1.0 million euros
− Effects from the WhiteWall purchase-price allocation: -1.0 million euros
▪ Previous year HY1 2019 special effects: -1.3 million euros
− Effects from the DeinDesign purchase-price allocation: -0.2 million euros
− Effects from the Cheerz purchase-price allocation: -1.0 million euros
− Effects from the WhiteWall purchase-price allocation: -0.1 million euros
Business segment Photofinishing H1
107
+12.2%
Rounding differences may occur.
in Euro millions
0.5 1.6
-0.4
1.8 8.4
2016 2017 2018 2019 2020
EBIT
166.6 167.7 180.3 200.8 225.3
2016 2017 2018 2019 2020
Umsatz
Marked improvement in photofinishing earnings in HY1
Also staying at home due to the coronavirus resulted in
additional sales and, together with cost reductions, to
this outstanding improvement
Turnover
Photofinishing-EBIT by QuarterSeasonal distribution: CEWE 2016 to 2020 – EBIT by quarter in % of full year EBIT
Rounding differences may occur.
Q2-EBIT in Photofinishing due to „Corona-stay-at-home“-effect and cost management
clearly above expectations of pre-corona perspective* 2020
108
Q1 pre-corona
perspective* 2020
+3.2 to +3.5 m€
EBIT pre-corona
perspective* 2020
64.6 to 70.6 m€**
Q1 Actual
+3.3 m€ ✓
Q2 pre-corona
perspective* 2020
-1.9 to -2.1 m€
Q2 Actual
+5.1 m€ ✓!* due to corona situation no targets have been set for 2020 so far
** group EBIT w/o targets of segments retail, commercial online-print and other
Comparison
against pre-corona
perspective* 2020
2.3% 2.5% 2.4% 4.4% 5.0%
2016 2017 2018 2019 e2020
-0.9%
0.4%
-3.1% -1.7% -3.0%
2016 2017 2018 2019 e2020
10.7% 7.6% 4.5% 1.3%
2016 2017 2018 2019 e2020
87.9% 89.5%96.1% 96.0%
2016 2017 2018 2019 e2020
14.5 13.2 12.4 10.6 7.6
2016 2017 2018 2019 2020
Umsatz *
Business segment Retail* Q2
109
in Euro millions
-28.8%
* only hardware, no photofinishing
Rounding differences may occur.
0.0 -0.1 -0.2 -0.3
-3.2
2016 2017 2018 2019 2020
EBIT *
Hardware retailing has been strongly affected by
coronavirus-related shop closures
Accelerated continuation of optimisation strategy
initiated
▪ As a result of coronavirus-related business closures, hardware
retailing was impacted strongly by the shutdown as of mid-
March, with Q2 sales dropping by 28.8%
▪ Due to a focus on photofinishing business and refraining from
low-margin hardware business, the active reduction in sales
before the pandemic started was still at around a strategic -
10% to -15%
▪ Coming out of the crisis stronger: CEWE is closing altogether
more than 30 stores in all the countries in which the company
conducts retail business
▪ Corona-induced accelerated continuation of optimisation
strategy with focus on photofinishing and online business
▪ Around 1.7 million euros in restructuring provisions was
allocated for shop closures in Q2
▪ Over and above this, around 1.5 million euros in value
adjustments were undertaken on inventory in hardware retailing
▪ Before these one-off effects, retailing achieved an operative
EBIT of 0.0 million euros in the second quarter of 2020, an
improvement of 0.3 million euros (Q2 2019: -0.3 million euros)
▪ Q2 2020 special effects: -3.2 million euros
− Restructuring provisions for retailing: -1.7 million euros
− Allowances for inventories of stocks: -1.5 million euros
▪ Previous-year special effects in Q2 2019: none
Turnover *
27.3 25.0 23.3 21.0 15.1
2016 2017 2018 2019 2020
Umsatz *
Business segment Retail* H1
110
in Euro millions
-28.2%
* only hardware, no photofinishing
Rounding differences may occur.
-0.4 -0.4 -0.7 -0.7
-3.7
2016 2017 2018 2019 2020
EBIT *
Hardware retailing has been strongly affected by
coronavirus-related shop closures
Accelerated continuation of optimisation strategy
initiated
▪ As a result of coronavirus-related business closures, hardware
retailing was impacted strongly by the shutdown as of mid-
March, with HY1 sales dropping by 28.2%
▪ Due to a focus on photofinishing business and refraining from
low-margin hardware business, the active reduction in sales
before the pandemic started was still at around a strategic -
10% to -15%
▪ Coming out of the crisis stronger: CEWE is closing altogether
more than 30 stores in all the countries in which the company
conducts retail business
▪ Corona-induced accelerated continuation of optimisation
strategy with focus on photofinishing and online business
▪ Around 1.7 million euros in restructuring provisions were
allocated for shop closures in HY1
▪ Over and above this, around 1.5 million euros in value
adjustments were undertaken on inventory in hardware retailing
▪ Before these one-off effects, retailing achieved an operative
EBIT of -0.5 million euros in the first half of 2020, an
improvement of 0.2 million euros (HY1 2019: -0.7 million euros)
▪ HY1 2020 special effects: -3.2 million euros
− Restructuring provisions for retailing: -1.7 million euros
− Allowances for inventories of stocks: -1.5 million euros
▪ Previous-year special effects in HY1 2019: none
Turnover *
▪ Since as early as mid-March, COP in B2B printing business has
been strongly impacted by the coronavirus, with sales declining
very considerably in Q2, by 56.5%
▪ Aggregated as at the end of February, COP was still increasing at
a single-digit growth rate
▪ The coronavirus-related decline in sales also caused the EBIT to
fall below that of the previous year
▪ Efficient cost management and the conversion to performance-
oriented depreciation kept the decline in earnings under control in
spite of heavy losses in turnover
▪ Coming out of the crisis stronger: In order to ensure that a
renewed stimulation of the online printing brands after the
coronavirus crisis is focussed and efficient, CEWE will be
streamlining the commercial online printing brand portfolio, with a
focus on the Saxoprint, Viaprinto and Laserline brands
▪ Q2 2020 special effects: 0.4 million euros
− Effects from the Laserline purchase-price allocation: -0.1 million euros
− Conversion to performance-related AFD for Saxoprint: 0.5 million euros
▪ Previous-year special effects in Q2 2019: -0.2 million euros
− Effects from the Saxoprint purchase-price allocation: -0.1 million euros
− Effects from the Laserline purchase-price allocation: -0.1 million euros
In a B2B business environment, COP was hit particularly
strongly by the coronavirus crisis
Efficient cost management kept the decline in earnings
under control
20.7 19.924.7 25.0
10.9
2016 2017 2018 2019 2020
Umsatz
Business segment Commercial Online-Print Q2
111
in Euro millions
-56.5%
Rounding differences may occur.
0.3
-0.3-1.5 -1.1
-2.8
2016 2017 2018 2019 2020
EBIT
Turnover
▪ Since as early as mid-March, COP in B2B printing business has
been strongly impacted by the coronavirus, with sales declining
very considerably by 33.4% in HY1
▪ Aggregated as at the end of February, COP was still increasing at
a single-digit growth rate
▪ The coronavirus-related decline in sales also caused the EBIT to
fall below that of the previous year
▪ Efficient cost management and the conversion to performance-
oriented depreciation kept the decline in earnings under control in
spite of heavy losses in turnover
▪ Coming out of the crisis stronger: In order to ensure that a
renewed stimulation of the online printing brands after the
coronavirus crisis is focussed and efficient, CEWE will be
streamlining the commercial online printing brand portfolio, with a
focus on the Saxoprint, Viaprinto and Laserline brands
▪ HY1 2020 special effects: 0.5 million euros
− Effects from the Laserline purchase-price allocation: -0.2 million euros
− Conversion to performance-related AFD for Saxoprint: 0.6 million euros
▪ Previous year HY1 2019 special effects: -0.3 million euros
− Effects from the Saxoprint purchase-price allocation: -0.1 million euros
− Effects from the Laserline purchase-price allocation: -0.2 million euros
In a B2B business environment, COP was hit particularly
strongly by the coronavirus crisis
Efficient cost management kept the decline in earnings
under control
41.1 40.5 49.1 50.233.4
2016 2017 2018 2019 2020
Umsatz
Business segment Commercial Online-Print H1
112
in Euro millions
-33.4%
Rounding differences may occur.
0.8
-0.2-1.8 -1.4
-3.4
2016 2017 2018 2019 2020
EBIT
Turnover
Business segment Other Q2
113
in Euro millions
+13.3%
-0.7 -0.9 -0.6 -0.9 -0.1
2016 2017 2018 2019 2020
EBIT
0.50.7
1.0
1.31.5
2016 2017 2018 2019 2020
Umsatz
Rounding differences may occur.
Segment for other business raises turnover and improves earnings
▪ The 1.5 million euros in turnover is to be exclusively
allocated to futalis (Q2 2019: 1.3 million euros)
▪ EBIT mainly improved through futalis: futalis
continues to grow most positively, with earnings
clearly moving towards break even
▪ IR costs lower than in the previous year as AGM was
moved to October 6, due to the pandemic
Structural and corporate costs and profits arising
from real estate property and company investments
are shown in the "other" business segment.
Turnover
Business segment Other H1
114
in Euro millions
+20.0%
1.0 1.4 1.82.6 3.1
2016 2017 2018 2019 2020
Umsatz
-1.4 -1.4 -1.0 -1.2-0.3
2016 2017 2018 2019 2020
EBIT
Rounding differences may occur.
Structural and corporate costs and profits arising
from real estate property and company investments
are shown in the "other" business segment.
Segment for other business raises turnover and improves earnings
▪ The 3.1 million euros in turnover is to be exclusively
allocated to futalis (HY1 2019: 2.6 million euros)
▪ EBIT mainly improved through futalis: futalis
continues to grow most positively, with earnings
clearly moving towards break even
▪ IR costs lower than in the previous year as AGM was
moved to October 6, due to the pandemic
Turnover
81,1 82,1 85,997,2
110,6
20,7 19,924,7
25,010,9
14,5 13,2
12,4
10,6 7,60,5 0,71,0
1,3 1,5
2016 2017 2018 2019 2020
Photofinishing Commercial Online-Print Retail Other
Group Turnover Q2
115
123.9130.6134.2
116.8 116.0
-2.7%fx-adj.: -2.2%
Retail:
-28.8%
(fx-adj.: -24.0%)
Commercial
Online-Print:
-56.6%
(fx-adj.: -56.7%)
Photofinishing:
+13.8%
(fx-adj.: +14.0%)
in Euro millions
Photofinishing nearly compensates decrease in other segments
Rounding differences may occur.
The CEWE Group turnover described here is shown excluding Group company
futalis, which is held for sale and is nevertheless still included in the "Other"
business segment as a "discontinued operation" in the segment reports pursuant
to IFRS 5.
Turnover development in Retail and
Commercial Online-Print effected by
Corona-shutdown: Until end of February
hardware-retailing according to strategy
with focus on photofinishing products
only down by around 10-15%, COP with
slight single digit growth
Photofinishing nearly compensates
decrease in other segments: “stay-at-home-
effect” brought additional growth
166.6 167.7 180.3200.8
225.3
41.1 40.549.1
50.233.4
27.3 25.023.3
21.0 15.1
1.0 1.41.8
2.6 3.1
2016 2017 2018 2019 2020
Photofinishing Commercial Online-Print Retail Other
Group Turnover H1
116
254.5277.0274.6
236.0234.6
+0.9%fx-adj.: +1.2%
Retail:
-28.2%
(fx-adj.: -24.3%)
Commercial
Online-Print:
-33.4%
(fx-adj.: -33.6%)
Photofinishing:
+12.2%
(fx-adj.: +12.4%)
in Euro millions
Photofinishing overcompensates decrease in other segments
Turnover development in Retail and
Commercial Online-Print effected by
Corona-shutdown: Until end of February
hardware-retailing according to strategy
with focus on photofinishing products
only down by around 10-15%, COP with
slight single digit growth
Photofinishing overcompensates decrease
in other segments: “stay-at-home-effect”
brought additional growth
Rounding differences may occur.
-1.1 -1.0
-4.1
-3.4
-1.0-0.7 -0.9-0.6
-0.9
-0.1
-0.2
-0.3
-3.2
0.3-0.3
-1.5-1.1
-2.8
-0.7 0.2
-1.8
-1.1
5.1
2016 2017 2018 2019 2020
EBIT nach Restrukturieung
Photofinishing
Commercial Online-Print
Retail
Other
EBIT
117 Rounding differences may occur.
Photofinishing increases significantly in Q2, COP and Retail with a more negative contribution to
earnings than in the previous year due to the coronavirus and retailing burdened by restructuring
and value adjustments on stocks
Operating profit before specials items* considerably increased
Q2in Euro millions
-0.5 -0.4
-3.8
-1.5
1.0
-1.4 -1.4-1.0 -1.2
-0.3
-0.4 -0.4-0.7
-0.7
-3.7
0.8
-0.2
-1.8 -1.4
-3.4
0.51.5
-0.4
1.8
8.4
2016 2017 2018 2019 2020
EBIT nach Restrukturieung
Photofinishing
Commercial Online-Print
Retail
Other
H1in Euro millions
operating profit before
special items:
3.0 million euros(+5.5 million euros vs. PY)
operating profit before
special items:
6.0 million euros(+5.8 million euros vs. PY)
* explained in detail in the segment reporting
97.7 87.8154.6 175.7
137.5
32.7 29.7
35.7
97.1
90.1169.8 191.3
212.6
235.9263.8
2016 2017 2018 2019 2020
Passivin Mio. Euro
115.0 123.0 121.6 126.9 124.5
185.2 185.8
281.2
381.8 366.9
2016 2017 2018 2019 2020
Aktivain Mio. Euro
Balance Sheet at 30 June
118
308.8
402.9
508.7 491.4
300.2= 53.7%
Equity ratio
= 46.4%
Equity ratio
Assets reduced due to
planned depreciation
Equity ratio strong at 53.7%,
w/o IFRS 16 even at 61.3%
Rounding differences may occur.
300.2 308.8
402.9
508.7 491.4
Non-current
assets
Current
assets
Equity
Non-current
liabilities
Current
liabilities
Purchase price allocation -
depreciation: -€ 9.5 million
IFRS 16 Leasing rights of
use -€ 8.1 million
Increase in inventories mainly in on-
site-finishing: +€ 2.3 million
-€ 5.2 million in receivables from
income tax refunds resulting from
deferred advance tax payments
Trade receivables: -€ 11.7 million
Corona-driven reduction.
c
Cash Position: +€ 11.7 million
Positive earnings
reinforce equity
+€ 27.9 million
IFRS 16 Long-term
leasing liability:
-€ 8.4 million
Short-term financial
liabilities:
-€ 46.5 million
Trade payables:
+€ 6.9 million
Assetsin Euro millions
Liabilitiesin Euro millions
-5.6-8.3 -9.8
-36.6
4.5
2016 2017 2018 2019 2020
Free-Cash Flow in euro millions
-13.3-9.3 -10.5
-43.9
-13.5
2016 2017 2018 2019 2020
Outflow of funds from investment aktivitiesin euro millions
7.7
1.0 0.7
7.3
18.1
2016 2017 2018 2019 2020
Cash Flow from operating businessin euro millions
Free cash flow Q2
119
=+
+2.8 Euro million more operational profit plus substantial working capital and tax
payment reductions increase cash from operative business
Investments in fixed assets at regular level after acquisition of WhiteWall previous year
Free cash flow turns positive
Rounding differences may occur.
+€ 2.8 m EBITDA
Higher cash flows
from operating net
W/C (mainly from
trade receivables)
+€ 4.2 m
Less cash out for
incme taxes
+€ 3.3 m
Acquisition of
WhiteWall
-€32.0 m
19.8%20.6%
16.4%
16.5% 15.5%
18.1%**20.3%**
2016 2017 2018 2019 2020
ROCE * in %
217.6 228.0
279.5
339.7
383.1
2016 2017 2018 2019 2020
Avarage capital employes in the past 4 quartersin euro millions
43.047.0 45.8
56.159.3
2016 2017 2018 2019 2020
12-months-EBIT in euro millions
ROCE
120
=
* ROCE = EBIT / Capital Employed. Rounding differences may occur.
** before IFRS 16 balance sheet total increase and restructuring costs
IFRS 16 and the WhiteWall acquisition increase average capital employed to 383.1 million euros
Positive development of earnings increases ROCE before IFRS 16 and restructuring to 20.3 %
Average capital
employed excluding
IFRS 16:
€ 307.5 million
12-month EBIT
excluding IFRS 16:
€ 55.7 million
12-month EBIT
excluding IFRS 16
and restructuring:
€ 66.0 million
Average capital employed
before IFRS 16:
€ 321.4 million
Page 121
In a nutshell
Corporate Development
Sustainability
Annual results 2019
Results Q2 2020
Share
Agenda
CEWE Stiftung & Co. KGaA ISIN DE0005403901, WKN 540390, CWC
Market segment regulated market
Prime Standard
Index SDAX
DAXplus Family 30
ISIN DE 0005403901
Symbol CWC
Reuters CWCG.DE
Bloomberg CWC GR
Date of initial listing March 24, 1993
Number of shares 7,400,020
Share data
Analysts
»Broad analyst coverage
122
27.3%
0.8%
65.5%
1.3% 5.1%
Shareholder structure
»Heirs of company founder are the main shareholders in CEWE
»28.1% of the shares are present in the Supervisory Board and the
Board of Management
27.3% AN Assets GmbH & Co. KG and
CN Assets GmbH & Co. KG
(heirs of Heinz Neumüller)
0.8% CEWE Board of Management and Supervisory Board
1.3% CEWE Stiftung & Co. KGaA
5.1% Union Investment
65.5% Other shareholders
28.1%
7.4 million
shares
123
124
»Dividend for the 2019 business year is to be increased to 2.00 euros
»Since analogue/digital transformation: eleventh consecutive dividend increase
* recommendation of supervisory board
and board of management to AGM 2020
Dividendin Euro
1.00 1.05
1.251.40 1.45 1.50 1.55 1.60
1.80 1.851.95 2.00*
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
11years of consecutive
dividend increases
125
126
127
128
129
Legal structure: Limited Joint-Stock Partnership
»Effective cooperation between shareholders and the foundation is continued as
before – but as a new, ultimately beneficial legal form in terms of taxes
General
Partnership
PLC Foundation
Public limited company/
stock corporation
is and remains
▪… a gateway to capital
markets
▪… the advocate of a
permanent focus on
returns on capital
employed and on
profitability
Foundation
is and remains
▪… the managing body (in
accordance with the intention
of the founder)
▪… the advocate of a long-term
mindset
Limited Joint-
Stock
Partnership
Shareholders Foundation
since 2013
until 2013
130
131
Financial schedule(insofar as already scheduled)
22.09.2020 Berenberg & Goldman Sachs German
Corporate Conference 2020
23.09.2020 Baader Investment Conference 2020
12.11.2020 Publication of Quarterly Statement Q3 2020
12.11.2020 Press release on Quarterly Statement Q3 2020
16.11.2020 2020 German Equity Forum
This presentation contains forward-looking statements that are based on current assumptions and forecasts of themanagement of CEWE. Known and unknown risks, uncertainties and other factors could lead to material differencesbetween the forward-looking statements given here and the actual development, in particular the results, financialsituation and performance of our Company. The Company assumes no liability to update these forward-lookingstatements or to conform them to future events or developments.All numbers are calculated as exactly as possible and rounded for the presentation. Figures may not sum to 100, because of rounding.
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