CeWe Color Holding AG / Quarter Results 20.05.2009 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- CeWe Color: Q1 on target - annual projections confirmed * No. 1 position on the European market for photo books reinforced * Internet business increases by 29% * Restructuring phase completed * Sales and earnings according to plan * Free cash flow rises by EUR 3.3 million * Commercial digital prints new growth segment Oldenburg, 20 May 2009 - CeWe Color Holding AG (SDAX, ISIN: DE0005403901) is confirming its aims for the full year on the basis of results for the first quarter of 2009. Chairman of the Board of Management Dr. Rolf Hollander: 'Despite the financial and economic crisis, we expect to achieve last year's level again, with sales at EUR 420 to 425 million and earnings before tax of EUR 10 to 15 million.' No. 1 position on the European market for photo books reinforced CeWe Color continued on its impressive path of growth with the CEWE PHOTO BOOK in the first quarter of 2009: with an increase of 57.8% to 647,000 CEWE PHOTO BOOKS (Q1/2008: 410,000 books) the market share was clearly expanded. 'Growth is even higher when it comes to turnover. Market researchers are forecasting that turnover on the European market will grow by 35% in 2009. Our success in the first quarter means that we are growing stronger than the market and we have reinforced our position as the European market leader in the market for photo books, which is so vital for us, says Hollander. Internet business increases by 29% In the first quarter of the year the total number of photos fell by 4.8% to 504 million photos due to a seasonal shift. The number of digital photos (incl. CEWE PHOTO BOOK prints) nevertheless increased by 13.3% to 391 million photos. This means that as many as 78% of all the photos developed are digital. More than 50% of these digital photos were ordered in the Internet. Rolf Hollander: 'We have increased online sales by 29%. We are thus setting very high standards in terms of sales figures for many Internet companies in our sector. Transformation-related restructuring completed With the plant closures in Paris and Teplice (Czech Republic), a phase of restructuring which lasted several years and reduced annual profits by an average of EUR 10 million a year over the past five years, hence almost halving these profits, has been completed. The elimination of these restructuring costs will increase earnings as of 2010. Sales and earnings according to plan Turnover in the first quarter fell slightly, by 1% to EUR 81.7 million. This is due to a change in the seasonal nature of the business: for years now the Christmas quarter has been gaining in significance through CEWE PHOTO BOOKS and other photo gift articles - at the expense of the first three quarters. Restructuring in Paris and Teplice meant that CeWe Color posted EUR 9.4 million in restructuring costs in the first quarter, as the company had previously announced. Q1 2009 earnings before tax (EBT) were hence negative by EUR 15.5 million. EBT before restructuring was negative at EUR 6.2 million (Q1/2008: - EUR 4.5 million). This figure contains initial losses for the introduction of commercial printing and additional investments in marketing and research & development in order to further expand business conducted with CEWE PHOTO BOOKS. In future the new CeWe business segment of commercial printing will not fully compensate for seasonal losses, but it will reduce them, says Hollander. Free cash flow rises by EUR 3.3 million In the past seven years the company has invested a great deal in new digital technology and has in the meantime largely replaced conventional machines and equipment. This wave of investments is now receding. This is why cash flow rose by EUR 3.3 million to - EUR 8 million in the seasonally problematic first quarter. 'This is the best Q1 cash flow in five years,' says Hollander. Commercial digital prints new growth segment CeWe Color is achieving great success in its range of digital print services for consumers with its CEWE PHOTO BOOK and has progressed to become the largest supplier in the field of first-class quality digital prints in Europe. Commercial users such as corporations and small business are now to be able to benefit from this range of services as well. CeWe began to open up this market with the acquisition of diron six months ago. Rolf Hollander: 'The initial integration phase has now been completed and we have commenced with production for commercial users.' Financial Diary: 28 May 2009 Annual General Meeting, Park Hotel, Bremen (10.00 a.m.) 25 August 2009 2009 mid-year report 09 November 2009 German Equity Forum, Frankfurt am Main 24 November 2009 2009 nine-month report About CeWe Color: Photo service company CeWe Color, with 13 highly-technical production operations and a staff of around 2,800 employees in 24 European countries, is both market and technological leader. The company supplied around 2.6 billion photos, more than 2.6 million CEWE PHOTO BOOKS and photo gift articles to more than 50,000 retail partners in 2008. In 2008 turnover amounted to EUR 420.0 million. CeWe Color is 'first mover' in the launch of new digital technologies, for example ordering digital photos in the Internet or with the help of order terminals (DigiFoto Makers) in retail stores. Sales of personalised CEWE PHOTO BOOKS are developing extremely well. In 1961, CeWe Color was founded by Senator h.c. Heinz Neumüller. The company went public under the leadership of Hubert Rothärmel in 1993. CeWe Color Holding AG is listed on the SDAX. Should you have any queries, please contact: CeWe Color Holding AG, Dr. Hella Hahm (-400) or Axel Weber (-552) Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: IR@cewecolor.de, Internet: www.cewecolor.de or www.cewe-fotobuch.de DGAP 20.05.2009 --------------------------------------------------------------------------- Language: English Issuer: CeWe Color Holding AG Meerweg 30-32 26133 Oldenburg Deutschland Phone: +49 (0)441 40 4-1 Fax: +49 (0)441 40 4-42 1 E-mail: IR@cewecolor.de Internet: www.cewecolor.de ISIN: DE0005403901 WKN: 540390 Indices: SDAX Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Hannover, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: CeWe Color: Q1 on target - annual projections confirmed
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