ABOUT CEWE INTRODUCTION: CEWE STIFTUNG & CO.KGAA - DECEMBER 2018 - INVESTOR RELATIONS
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About CEWE Introduction: CEWE Stiftung & Co.KGaA December 2018
About CEWE
CEWE supplies consumers with photos and digital print products via over-the counter trade as well as
Internet sales.
CEWE is a service partner for the leading brands on the European photography market. In 2017 the company
developed and produced 2.2 billion photos, also in 6.0 million CEWE PHOTOBOOKS and photo gifts. “CEWE
PHOTOBOOK” (Europe’s leading photobook brand) and the company’s other product brands CEWE
CALENDARS, CEWE CARDS and CEWE WALL ART, easy-to-use ordering applications (PC, Mac and the mobile
iOS, Android and Windows), our high level of expertise in digital printing, the benefits of scale offered by our
efficient industrial production and logistics system, broad distribution via the Internet, 20,000 retailers and
over 17,000 CEWE INSTANT PHOTO stations are the key competitive advantages of CEWE’s Photofinishing
business.
As well as these photo products, CEWE’s Retail business also distributes photographic hardware
(e. g. cameras) in several countries.
Through its brands CEWE-PRINT.de, SAXOPRINT, viaprinto and LASERLINE, CEWE is increasingly serving
customers as an online printing service provider through printed advertising media which can be ordered
online, such as flyers, posters, brochures, business cards etc.
► CEWE: Europe’s online printing and photo service
Page 2
2018 corporate structure CEWE is the leading photo service company in Europe Page 3
Business segments of CEWE
Revenue
in EUR millions
599.4* Commercial
84.0 Online-Print
459.3
Photofinishing
53.0 Retail
2017
2016
* including revenue from the "Other" segment in the amount of EUR 3.0 million
► CEWE: 3 business segments
Rounding differences might occur.
Page 4
CEWE growth phases CONCEPTUAL
Revenue
Hardware Retail
Transformation phase Commercial
Online-Print
Analogue / Digital
(analogue)
Photofinishing
(digital)
199 0
199 1
199 2
199 3
199 5
199 7
199 9
200 0
200 1
200 2
200 4
200 6
200 8
200 9
201 0
201 1
201 3
201 5
201 7
199 4
199 6
199 8
200 3
200 5
200 7
201 2
201 4
201 6
Transformation: Growth:
▪ Restructuring completed ▪ CEWE PHOTOBOOK & other
▪ Wave of investments value added photo products
completed ▪ Print products for commercial use
Page 5
Agenda
1. Business Segments
Photofinishing
Retail
Commercial Online-Print
2. CEWE group
Page 6
Industrial production plants CEWE operates 12 industrial production plants in Europe Four examples: Oldenburg (headquarters) CEWE Munich Saxoprint Dresden CEWE Kozle (Poland) ► Economies of scale through industrial production processes Page 7
Different ways to order CEWE products
1 Website / App
Internet /
Online 2 CEWE PHOTOBOOK
Software
Ways
to order 3 Data carrier in
a photo envelope
Point of sale 4 DigiFotoMaker burns CD
or sends data online
5 DFM kiosk with printer
produces pictures at the POS
CEWE offers all possible ways to place an order
Page 8
Overview CEWE photofinishing products
Prints CEWE PHOTOBOOK CEWE CALENDAR
CEWE CARDS CEWE WALL ART Photo Gifts
Full range of photo products
Page 9
Photo servicer for retailers
Retail CEWE Consumers
Retail stores Production in an Collecting in a store
industrial plant
➔ ➔
or Ordering Despatch or
Internet webshop by mail to customer‘s home
Photo products are a service for retailers
Page 1020,000 retail partners in Europe
Drugstores Photographic retailers Internet retailers
Electronics retailers Grocery & department stores Travel business
CEWE reaches consumers through strong retail brands
Retail partners invest in distribution and marketing
Retail sales channels with online retailers and system partners
Page 11Growth in revenue for various product groups
CONCEPTUAL
Revenue
Hardware Retail
Commercial Online Print
Prints from films
Digital prints
Photofinishing
Photo gift articles
(e.g. calendars, greeting
cards, wall decoration)
CEWE PHOTOBOOK
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
► CEWE PHOTOBOOK and photo gift articles replace single-print revenue
Page 12Operational Photofinishing EBIT margin
11.9%
11.7%
10.2% 10.5%
9.5%
9.0%
8.6%
7.8%
2010 2011 2012 2013 2014 2015 2016 2017
► Profitability in photofinishing continues
to increase due to product mix shift
Page 13Brand overview CEWE photofinishing Page 14
Brand-marketing: Broad media-mix ► Multi-channel brand-marketing for CEWE PHOTOBOOK Page 15
Brand awareness CEWE PHOTOBOOK in Germany
Unaided brand awareness
Aided brand
57% awareness 2018:
75%
21%
2011 2012 2013 2014 2015 2016 2018
2017
Source: 2011-2016 GfK, 2017-2018 Nielsen
► Again, substantial increase in brand awareness
Page 16CEWE Apps
CEWE PHOTOWORLD CEWE POSTCARD CEWE CALENDAR CEWE PURE CEWE MY PHOTOS
CEWE SERVICE CEWE KIOSK CEWE PHOTO CONTEST CEWE ON TOUR CEWE OPTIMIZE
CEWE EFFECTS CEWE GOO CEWE HAPPY FACES CEWE BOOTH CEWE IR SERVICE
Page 17CEWE position in photofinishing
Product mix shift raises margin CEWE is the market leader “The trend is our friend”
▪ Photofinishing revenue ▪ Natural consolidator ▪ Online order and POS
in EUR millions ▪ High market share very likely to delivery is a USP
Prints from films see the volumes of suppliers
Digital prints leaving the market shifting to ▪ Around 50% of customers
Photo gift articles CEWE chose to be fetched
▪ CEWE PHOTO BOOK is the ▪ Increasing volume of
CEWE PHOTOBOOK
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
leading photo book (market share photos from mobile devices
of 23% by volume):
✓ Outstanding software ▪ Ordering via
program with an assistant mobile devices
function
▪ Operational Photofinishing ✓ Biggest product range
EBIT margin ✓ Various designs
in % of turnover ✓ Full customer service
11.9%
(7/9am-10pm)
11.7%
10.2% 10.5%
✓ Best printing quality
8.6%
9.0%
9.5% through separate
7.8% optimisation each photo
✓ Excellent book-binding
quality
▪ Unaided brand awareness in
2010 2011 2012 2013 2014 2015 2016 2017
Germany 57%
▪ Profitability in photofinishing 21%
continues to increase due to
product mix shift
2011
2011 2012 2013 2014 2015 20162018
2017
► CEWE has a strong position in the market: high entrance barriers
Page 18CEWE acquires shares in leading French photo app specialist
▪ Fast-growing "Cheerz" premium brand for smartphone customers
▪ Market leader in France for photofinishing apps
▪ Regional fit: Dynamic increase in sales in France, Spain and Italy
▪ Additional customer group: Cheerz is attracting also very young people
▪ CEWE expects the acquisition to generate additional growth in mobile
business to strengthen business in France and Southern Europe
▪ Synergies in the areas of mobile competence, sales, production and
logistics
▪ CEWE acquired 80 % of the shares in the Cheerz Group for 36 million
euros with the option of the remaining 20 %
▪ The transaction estimates the company at around slightly more than one-
and-a-half times the expected turnover for 2018
▪ CEWE Board of Management expects the takeover – including the
purchase price allocation and the transaction costs – to still have a
negative impact on EBIT 2018 in an amount of around 4 million euros
▪ Acquisition effective as of February 2018
► Sustained positive effect on the value of the entire company expected
Page 19TIPA Award 2018 Page 20
Agenda
1. Business Segments
Photofinishing
Retail
Commercial Online-Print
2. CEWE group
Page 21CEWE´s retail business
N
▪ 143 retail stores
S ▪ EUR 54.9 million revenue (2016) with photo-
hardware (cameras, lenses, tripods, etc.)
PL ▪ Sales of fotofinishing products in fotofinishing
CZ
SK segment
► Retail segment contains hardware revenue only, fotofinishing revenue is
shown in fotofinishing segment
► Own retail business provides an excellent window to the market
Page 22CEWE retail strategy
Brand
Focus on
Distribution
photos
Service
► Focus on photofinishing products in CEWE-retail shops
Page 23Retail strategy ► Focus on photofinishing products in CEWE-retail shops ► Adjustments in hardware pricing to improve margins Page 24
Agenda
1. Business Segments
Photofinishing
Retail
Commercial Online-Print
2. CEWE group
Page 25The CEWE online print brands
Flyer Broschures Folder Business Cards
► Portals focus on different customer groups e.g. through
designs, order processes or product portfolios
Page 26Print market in Germany (job printing)
Market volume job printing in Germany in EUR billions
6.2 6.3
5.7
5.5 5.4 5.3
5.1 5.0 4.9 4.8
6.1 6.2
5.6 5.3 5.1 4.9 4.5 4.3 4.1 3.9 Offline Print
0.8 0.9 Online Print
0.6 0.7
0.2 0.3 0.4
0.1 0.1 0.1
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
► Online print market is increasing
Source: Market: Statistisches Bundesamt, bvdm
Online Print: Top 5 Creditreform + Top 6-20 & Vistaprint; estimation CEWE
Page 27Benefits of Online Printing
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
► The internet makes printing more efficient
Page 28Economies of scale in the production of trimmed and folded goods
Portal / e-commerce Printing Finishing Despatch
A B
Cost of printing plate and set-up costs
C E F are borne by a large number of orders!
D
No sorting required:
every order placed
by a customer is
automatically sorted
and stacked!
B
11A 11
33C 55E 66F
33D
Many standardised orders Maximum utilisation by
Highly automated finishing for Direct shipment of individual
are collected via the portals in generating a collected form
trimmed and folded goods orders (A-F)
a short time for printing in depth
The benefit results from a maximum utilisation of the printing paper, less
waste per order and lean processes
Page 29CEWE takes over online printing company LASERLINE
▪ LASERLINE expected to contribute 15
million euros to turnover in 2018
▪ As of 2019, LASERLINE to contribute
positively to Group earnings
▪ Contribution to earnings is not yet
expected to be positive in 2018
▪ LASERLINE operates in Berlin and has
a staff of more than 160 employees
▪ LASERLINE has an outstanding
customer base, a comprehensive
product range, high-quality technical
facilities
▪ Acquisition effective as of January 2018
► CEWE continues to grow in commercial online printing
► Takeover enables CEWE to generate mutual growth and achieve better
purchase conditions and other economies of scale
Page 30Agenda
1. Business Segments
Photofinishing
Retail
Commercial Online-Print
2. CEWE group
Page 31EBIT Development
in Euro millions 54
49.2
48
47.0
36.4
32.6
29.4 28.3 28.9
27.2
17.9
11.2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 e2018
= Commercial Online Print start-up costs
► EBIT-target for 2018 expanded
Page 32Shareholder structure
27.3% ACN Vermögensverwaltungs-
gesellschaft mbH & Co. KG
1.6% 5.1% (joint heirs of Heinz Neumüller)
27.3%
28.1% 0.8% CEWE Board of Management
and Supervisory Board
7.4 million
shares 0.8% 1.6% CEWE Stiftung & Co. KGaA
5.1% Union Investment
65.2%
65.2% Other shareholders
66.0% Free Float (acc. to Deutsche Börse)
► Joint 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
Page 33Dividend
in Euro
1.80 1.85
1.55 1.60
1.45 1.50
1.40
1.25
1.00 1.05
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
► Dividend for the 2017 business year increased to 1.85 euros
► Since analogue/digital transformation: ninth consecutive dividend increase
Page 34Share data
Key share indicators 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
Analysts
► Broad analyst coverage
Page 35CEWE Equity Story
Growth ahead
Natural consolidator Growth area: Strong ROCE
and growth in fotofinishing Commercial Online-Print
ROCE
[%]
▪ 23% fotobook market share 23.3%
20.1%
Shareholders in Western Europe (x3 vs. #2) 15.0%
16.8% 17.2%
taking ▪ 40% market share in Germany
decisions
Growing profit Strong brand awareness Profitability supported
2013 2014 2015 2016 2017
Increasing profitability protects price by online print break-even EPS
28% Earnings per share
Operational Photofinishing EBIT margin EBIT Commercial Online-Print
57% unaided brand awareness [EUR] 4.70
11.9%
11.7% 4.23
9.5%
10.2% 10.5% 75% aided brand awareness 1.6 1.6
9.0% 3.36
8.6% 3.07 3.24
7.8% 2.84 2.87
(in Germany,Source -0.9
2.02
-2.8 -2.9
Nielsen Panel) -4.8
-7.0
28% of shares 2011 2012 2013 2014 2015 2016 2017
2010 2011 2012 2013 2014 2015 2016 2017
are represented 2010 2011 2012 2013 2014 2015 2016 2017
in management Reliable
and supervisory Reliable stability Dividend
board
Strong equity ratio Solid cash position Stable also in weak economy
Dividend per share
56.0% Highest net cash Growth 2009 [EUR]
1.80 1.85
Equity ratio position per Dec 31, +1.8% 1.25
1.40 1.45 1.50
1.55 1.60
1.00 1.05
Dec 31, 2017 just after peak
-4.2% CWC revenue
season
FX-adjusted 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Euro 17
► Reliable stability, growing profitability, growth ahead
Page 36This presentation contains forward-looking statements that are based on
current assumptions and forecasts of the management of CEWE.
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. Figures may not sum to 100, because of rounding.
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