DGAP-News: CeWe Color Holding AG: CeWe Color on track


CeWe Color Holding AG / Quarter Results

25.08.2009 

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

* Sales and earnings according to plan
* Free cash flow raised by more than 20%
* CEWE PHOTO BOOK sales rise by 50% and reinforce market leadership
* 2009 targets confirmed
* End of transformation-related restructuring confirmed
* Positive development for the following year announced

Oldenburg, 25 August 2009. CeWe Color Holding AG (SDAX, ISIN: DE0005403901)
achieved scheduled Q2 sales to the amount of 88.6 million euros (same
period of the previous year 99.1 million euros) despite the current global
economic crisis. The decline in Eastern Europe is mainly due to currency
losses in the retail segment of business. Sales in the core business of
photofinishing were at 69.4 million euros, remaining almost consistent with
those achieved in Q2 of 2008 after currency adjustments (change of 0.8%).
The reason for this minimal change - as in previous years - is the fact
that sales are now mainly generated in the fourth quarterly period. Due to
an early focus on high-margin products such as CEWE PHOTO BOOKS and digital
print products which are in great demand as gift articles, the proportion
of sales and earnings generated in the Christmas quarterly period is
rising. Earnings after tax were raised by 9.2% to 1.5 million euros in the
second quarter of 2009. In the previous year restructuring costs still
amounted to one million euros. Scaled-down investment activity contributed
towards increasing the free cash flow, which is negative for seasonal
reasons, by more than 20%. The Q2 free cash flow was enhanced by 1.8
million euros to -6.6 million euros and by as much as 5.1 million euros to
-14.5 million euros for the period up to mid-year.

CEWE PHOTO BOOK increases market share 
The CEWE PHOTO BOOK once again achieved record sales and turnover figures:
in the period up to mid-year, CeWe Color sold 1.3 million CEWE PHOTO BOOKS,
an increase in sales of 50% over those of the same period of the previous
year. Since the European market for photo books is likely to have grown by
35%, CeWe Color has been able to further reinforce its position as the
clear Number One on the European photo book market. The high quality of the
product is one of the reasons for this sustained success. In a photo book
test conducted by the German consumer foundation Stiftung Warentest in
August 2009, the CEWE PHOTO BOOK - sold by CeWe Color retail partner Saturn
- once again emerged as the test winner.

Sales and earnings targets for 2009 confirmed
The Board of Management has confirmed its forecast for the full year given
the fact that development in the period up to mid-year in 2009 went
according to plan. Expectations are being maintained for turnover to the
amount of 420 to 425 million euros, operative earnings before tax and
restructuring of 20 to 25 million euros and earnings after tax of 10 to 15
million euros. 'Actively pressing ahead with the process of transformation
from analogue to digital photography and our early focus on new products
such as the CEWE PHOTO BOOK and posters covered by acrylic glass and on
aluminium wall plates are paying off: despite a problematic environment, we
will achieve sales and earnings for the full year that are on the same
level as those of the previous year,' explains Dr. Rolf Hollander, CeWe
Color Holding AG CEO.
 

Reduction in investments increases free cash flow
Dr. Hollander confirmed that investments had been considerably scaled down
against those of the previous year. For 2009 these investments, at 26
million euros, are to be 22% below those of the previous year to the amount
of 33.3 million euros.  This new investment target for 2009 will however
exceed the amount originally anticipated by four million euros,  the reason
being the expansion of the digital printing section at the CeWe Color
operation in Munich. Rolf Hollander: 'The highly efficient operation in
Munich was the only plant in the Group which could not be expanded due to a
lack of space.  When the only neighbouring operation quickly and
unexpectedly went up for sale, we jumped at the chance and bought it.' 
CeWe Color nevertheless continues to focus on its free cash flow and will
also be able to maintain investments at a low level in 2010.

End of transformation-related restructuring confirmed
Hollander confirmed that in the coming few years the phase of
restructuring, which has reduced annual profits by an average of ten
million euros a year over the past five years, would have been concluded.
'We have successfully completed the process of restructuring and are seeing
the positive effects on our cost situation,' the CEO explains.

Positive outlook for coming years
The Board of Management expects sales and earnings to develop positively in
coming years. Rolf Hollander: 'The end of transformation-related
restructuring and the end of a period of extremely high initial investments
in digital technology will greatly alleviate our free cash flow.  The
foundation for more growth has been laid with our CEWE PHOTO BOOKS,
innovative gift articles and digital print services for commercial users. 
Our credit facilities, which have just been raised by 29% to more than 90
million euros, secure the financing of this growth.

The 2009 mid-year report is available for downloading at
www.cewecolor.de/ir.

Financial Diary:
1 September 2009 SCC_Small Cap Conference, Frankfurt am Main
9 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, Axel Weber 
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421,
Email: IR@cewecolor.de, Internet: www.cewecolor.de or www.cewe-fotobuch.de



DGAP 25.08.2009 
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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 München, Hannover, Düsseldorf, Hamburg,
              Stuttgart
 
End of News                                     DGAP News-Service
 
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