Results Q3 2020
Analyst Conference Call
CEWE Stiftung & Co. KGaA
November 12, 2020
This 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. Due to this, rounding differences might occur.
2
CEWE acts with clear priorities in Corona crisis
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We focus on health and safety of our employees
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
We prepare the re-start of Retail and Commercial Online-Print
We seek "Corona-upsides"
4
With a slight head start in the fourth quarter: EBIT after 9 months EUR 1.4 million ahead of PY
- Photofinishing saw coronavirus-related change in holiday travel behaviour in Q3 resulting in fewer (holiday) photos overall: turnover declines by 5.0% to EUR 110.4 million. Given that EBIT is still strong at EUR 0.2 million (Q3 2019: EUR 0.8 million).
- Commercial Online-Print is still significantly affected by the corona situation, turnover at EUR
- million in Q3 is 38.1% below the previous year's level. Efficient cost management kept the decline in earnings under control: EBIT of EUR -1.6million is EUR 0.7 million weaker than in previous year's Q3.
- (Hardware-)Retail returns to its "pre-coronavirus trend" in Q3: turnover declines by 12.5% to EUR
- million. EBIT improved slightly to EUR -0.05million (Q3 2019: EUR -0.11 million).
- Group EBIT in Q3 is at EUR -1.6million (Q3 2019: EUR -0.5 million). After 9 months in 2020
CEWE remains ahead of last year's EBIT with EUR 1.4 million: Group EBIT is at EUR -0.6 million after EUR -2.0 million in 2019.
5 | Rounding differences may occur. |
Agenda
- Corporate Development by Business Segments
- Photofinishing
- Retail
- Commercial Online-Print
- Other
- Group Results
- Financial Details
- Q&A-Session
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1.1 Photofinishing
New trading partner Boots in Great Britain : Rollout is going extremely well despite corona
NEW: CEWE Photo World App with automatically generated suggestions
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Premium poster in a gallery frame
Calendars
Photo advent calendar with kinder® chocolate
Cards
Christmas campaign 2020: "My very personal gift"
20
Number of prints and turnover Photofinishing Q3
Total prints | Value per photo | Turnover Photofinishing | -5.0% | ||||||||||||||||||
in millions | -13.6% | Turnover / photo | +10.0% | in Euro millions | 116.2 | 110.4 | |||||||||||||||
(Euro cent / photo) | |||||||||||||||||||||
23.26 | 95.4 | 96.3 | 100.4 | ||||||||||||||||||
529 | 532 | 550 | 21.14 | ||||||||||||||||||
19.55 | |||||||||||||||||||||
514 | |||||||||||||||||||||
475 | 18.05 | 18.11 | |||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 |
Rounding differences may occur. |
Rising share of value-added-products increases turnover per photo
21
Number of prints and turnover Photofinishing Q1-3
Total prints | - 4.0% | Value per photo | |
in millions | Turnover / photo | +10.4% |
(Euro cent / photo)
1,453 | 1,509 | 1,448 | |||||||
1,394 | 1,412 | 23.18 | |||||||
19.88 | 21.00 | ||||||||
18.94 | |||||||||
18.04 | |||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 |
Turnover Photofinishing | ||||
in Euro millions | +5.9% | |||
335.7 | ||||
316.9 | ||||
264.0 | 280.8 | |||
262.0 | ||||
2016 | 2017 | 2018 | 2019 | 2020 |
Rounding differences may occur. |
Rising share of value-added-products increases turnover per photo
22
CEWE PHOTOBOOK Q3 and Q1-3
Number of CEWE PHOTOBOOK Q3 | Number of CEWE PHOTOBOOK Q1-3 |
in thousands | in thousands |
-15.5 %-1.3%
3,832 | 3,973 | 3,921 | |
3,692 | |||
3,640 | |||
1,357 | 1,361 | 1,323 | 1,407 | 1,188 | ||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 |
Corona-related changes in holiday travel behavior reduced the number of CEWE PHOTOBOOKS in Q3 and thus also slightly in Q1-3
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Photofinishing-Turnover by Quarter
Seasonal distribution: CEWE 2016 to 2020 - Turnover by quarter in million euros
218.3 251.1
190.0 195.4
94.5 | 103.5 | 114.7 | 97.2 | 110.6 | 95.4 | 96.3 | 100.4 | 116.2* 110.4 | |||||
85.5 | 85.6 | 81.1 | 82.1 | 85.9 | |||||||||
2016 | 2017 | 2018 | 2019 e2020 | 2016 | 2017 | 2018 | 2019 | e2020 | 2016 | 2017 | 2018 | 2019 e2020 | |
Q1 | Q2 | Q3 | |||||||||||
Turnover 2019 | Q1 2019 | Q2 2019 | Q3 2019 | ||||||||||
103.5 m€ | 97.2 m€ | 116.2 m€ | |||||||||||
Q1 Actual | ✓ | Q2 Actual | ✓ | Q3 Actual | | ||||||||
114.7 m€ | 110.6 m€ | 110.4 m€ |
2016 2017 2018 2019 e2020
Q4
Rounding differences may occur.
- in 2019, WhiteWall contributed entirely inorganically to Q3 growth
Corona-related changed holiday travel behavior reduces turnover in Photofinishing in Q3
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Business segment Photofinishing Q3
in Euro millions
Turnover | -5.0% | ||||||
95.4 | 96.3 | 100.4 | 116.2 | 110.4 | |||
2016 | 2017 | 2018 | 2019 | 2020 | |||
EBIT |
5.6 | 4.1 | 2.6 | 0.8 | 0.2 |
2016 | 2017 | 2018 | 2019 | 2020 |
Coronavirus-related change in holiday travel behaviour reduces sales in Q3
- Photofinishing saw coronavirus-related change in holiday travel behaviour resulting in fewer (holiday) photos overall and in consequence also to fewer orders for photos and less turnover
- Photofinishing EBIT falls only slightly short of that of the previous year
- The cost-reduction programme initiated as early as in March also helped to moderate the drop in earnings
- Q3 2020 special effects: -1.1 m. euros
- Effects resulting from the DeinDesign purchase-price allocation: - €0.1 m.
- Effects resulting from the Cheerz purchase-price allocation: -€0.5 m.
- Effects resulting from the WhiteWall purchase-price allocation: -€0.5 m.
- Q3 2019 special effects: -1.1 m. euros
- Effects resulting from the DeinDesign purchase-price allocation: -€ 0.1 m.
- Effects resulting from the Cheerz purchase-price allocation: -€ 0.5 m.
- Effects resulting from the WhiteWall purchase-price allocation: -€ 0.5 m.
Strict cost reductions see moderate decline in earnings
Rounding differences may occur.
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Business segment Photofinishing Q1-3
in Euro millions
- Photofinishing has so far grown by 5.9% in 2020, with acquired wall- art specialist WhiteWall still contributing non-organically to this growth in the period from January to May
Turnover | +5.9 % | ▪ | As of mid-March the coronavirus pandemic also had an impact on | |||||||
photofinishing: Instant-print POS business was affected by shop | ||||||||||
316.9 | 335.7 | closures, while online photofinishing business saw the stay-at-home | ||||||||
262.0 | 264.0 | 280.8 | effect having a positive influence on incoming orders | |||||||
▪ | ||||||||||
Q3 was dominated by a changed holiday travel behaviour to result in | ||||||||||
fewer (holiday) photos overall and in consequence also to fewer | ||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||
orders for photos and less turnover |
EBIT
6.1 | 5.7 | 2.2 | 2.6 | 8.6 | |
2016 | 2017 | 2018 | 2019 | 2020 |
Marked improvement in photofinishing earnings in Q1-3
It was primarily coronavirus self-isolation that had the effect of additional sales and, together with cost reductions, of this improvement
- Photofinishing EBIT grew by a highly presentable 6.0 million euros
- Besides additional contributions to profits from the rise in sales, the cost-reduction programme initiated as early as in March also improved the EBIT against that of the previous year
- Q1-32020 special effects: -3.3 million euros
- Effects resulting from the DeinDesign purchase-price allocation: -€ 0.3 m.
- Effects resulting from the Cheerz purchase-price allocation: -€ 1.5 m.
- Effects resulting from the WhiteWall purchase-price allocation: -€ 1.5 m.
- Q1-32019 special effects: -2.5 million euros
- Effects resulting from the DeinDesign purchase-priceallocation:-€ 0.3 m.
- Effects resulting from the Cheerz purchase-price allocation: -€ 1.5 m.
- Effects resulting from the WhiteWall purchase-price allocation: -€ 0.6 m.
26 | Rounding differences may occur. |
Photofinishing-EBIT by Quarter
Seasonal distribution: CEWE 2016 to 2020 - EBIT by quarter in million euros
1.2 | 1.3 | 1.4 | 3.0 | 3.3 | ||
3,0 | 3,3 | |||||
1,2 | 1,3 | 1,4 | ||||
5.1 | 5.6 | 4.1 | 2.6 | 0.8 | 0.2 | |||||||||
0.2 | ||||||||||||||
-0.7 | -1.8-1.1 | 2016 | 2017 2018 2019 e2020 |
64.3 55.6
45.9 48.3
2016 | 2017 | 2018 | 2019 | e2020 |
Q1 | Q2 | Q3 | Q4 |
EBIT 2019 | Q1 | 2019 | Q2 2019 | Q3 2019 | ||||||
+3.0 m€ | -1.1 m€ | +0.8 m€ | ||||||||
Q1 | Actual | ✓ | Q2 Actual | ✓ | Q3 Actual | | ||||
+3.3 m€ | +5.1 m€ | +0.2 m€ | ||||||||
Rounding differences may occur.
Q3-EBIT in Photofinishing due to Corona-related changed holiday travel behavior slightly below PY
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1.2 Retail
Retail with focus on photofinishing business
▪ Own retail stores in NO, PL, CZ, SK
▪ Strategic focus on photofinishing and
online business
▪ EUR 43.7 million revenue (2019) with
photo-hardware (cameras, lenses, …)
Retail segment contains hardware revenue only, photofinishing business is shown in photofinishing segment
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Business segment Retail * Q3
in Euro millions
Turnover *
-12.5% | |||||||
12.9 | 13.0 | 11.8 | 10.2 | 9.0 | |||
2016 | 2017 | 2018 | 2019 | 2020 | |||
EBIT * | |||||||
0.0 | |||||||
-0.1 | -0.1 | -0.1 | -0.1 | ||||
2016 | 2017 | 2018 | 2019 | 2020 |
- After coronavirus-related business closures in the first half of the year, hardware retailing returns to its pre-coronavirus trend in Q3; due to a focus on photofinishing business and refraining from low-margin hardware business, the active reduction in turnover before the onset of the coronavirus crisis was already at around a strategic -10% to -15%
- In Q3 2020, retailing slightly improved EBIT by 62,000 euros
- Q3 2020 special effects: none
- Q3 2019 special effects: none
Hardware retailing returns to its "pre-coronavirus trend" in Q3
* only hardware, no photofinishing Rounding differences may occur.
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Business segment Retail * Q1-3
in Euro millions
Turnover *
-23.0% | ||||||
40.2 | 38.3 | 35.1 | 31.2 | 24.0 | ||
2016 | 2017 | 2018 | 2019 | 2020 |
EBIT *
-0.4 | -0.4 | special effects -3.2 | |||||
-0.8 | -0.8 | ||||||
operative EBIT -0.5 | |||||||
-3.7 | |||||||
2016 | 2017 | 2018 | 2019 | 2020 |
Hardware retailing was strongly affected by coronavirus- related business closures
- As a result of coronavirus-related business closures, hardware retailing was impacted strongly by the shutdown in HY1, with aggregated turnover having dropped by 23%
- Due to a focus on photofinishing business and to refraining from low-margin hardware business, the active reduction in turnover before the onset of the coronavirus crisis was still at around a strategic -10% to -15%
- Coming out of the crisis stronger: CEWE is closing more than 30 retail stores across all the countries
- Corona-inducedaccelerated pursuance of an optimisation strategy with a focus on photofinishing and online business - and with associated costs as a one-off effect
- Before these one-off effects, retailing in Q1-3 2020 achieved an operative EBIT of -0.5 million euros, an improvement of 0.3 million euros (Q1-3 2019: -0.8 million euros)
- Q1-32020 special effects: -3.2 million euros
- Restructuring provisions for retailing: -1.7 million euros
- Allowances for inventories of stocks: -1.5 million euros
- Q1-32019 special effects: none
Accelerated pursuance of the optimisation strategy initiated in Q2 (caused special effects of -3.2 mill. euros)
- only hardware, no photofinishing Rounding differences may occur.
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1.3 Commercial Online-Print
Commercial Online-Print
Service focus | Cost leader in industrial online printing | Metropolitan area | ||
Berlin | ||||
Business and advertising prints: flyers, business cards, stationery, packaging, promotional items, etc.
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Business segment Commercial Online-Print Q3
in Euro millions
Turnover | ▪ | COP remains strongly impacted by the coronavirus in B2B printing | ||||||||||||
business, losing 38.1% in turnover in Q3 | ||||||||||||||
-38.1% | ▪ | While the decline in turnover was still at 56.5% in Q2, it has now | ||||||||||||
23.9 | 24.8 | lessened somewhat, but nevertheless remains at a severe level | ||||||||||||
19.7 | 20.2 | |||||||||||||
15.4 | ||||||||||||||
▪ | In spite of these severe losses in turnover, efficient cost | |||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||
management (also in conjunction with a conversion to | ||||||||||||||
EBIT | performance-oriented depreciation) is keeping the decline in | |||||||||||||
earnings within limits: COP EBIT, at -1.6 million euros, is down on | ||||||||||||||
the -0.8 million euros of the previous year. | ||||||||||||||
0.4 | ▪ | Q3 2020 special effects: -0.1 million euros | ||||||||||||
− | Effects resulting from the Laserline purchase-price allocation: -€ 0.1 m. | |||||||||||||
-0.3 | -0.8 | |||||||||||||
-1.8 | -1.6 | |||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ▪ | Q3 2019 special effects: -0.1 million euros | ||||||||
− | Effects resulting from the Saxoprint purchase-price allocation: -€ 0.1 m. | |||||||||||||
− | Effects resulting from the Laserline purchase-price allocation: -€ 0.1 m. |
COP remains strongly impacted by the coronavirus in
B2B printing business
Rounding differences may occur.
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Business segment Commercial Online-PrintQ1-3
in Euro millions
- Since as early as mid-March, COP in B2B printing has been strongly impacted by coronavirus; Q1-3 turnover declined by 35.0%
Turnover
-35.0%
▪ | Aggregated as at the end of February, COP was still increasing at |
a single-digit growth rate |
60.8 | 60.7 | 73.0 | 75.1 | 48.8 | ||
2016 | 2017 | 2018 | 2019 | 2020 |
EBIT
0.5 | 0.2 | |||||
-3.6 | -2.3 | |||||
-5.0 | ||||||
2016 | 2017 | 2018 | 2019 | 2020 |
In a B2B business environment, the COD has been particularly hard hit by the coronavirus crisis in a B2B business environment
▪ | The coronavirus-related decline in sales also caused the EBIT to | |
fall below that of the previous year | ||
▪ | Efficient cost management in conjunction with a conversion to | |
performance-oriented allowances 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 | ||
concentrating the commercial online printing brand portfolio on the | ||
Saxoprint, Viaprinto and Laserline brands | ||
▪ | Q1-3 2020 special effects: +0.4 million euros | |
− | Effects resulting from the Laserline purchase-price allocation: -€ 0.2 m. | |
− | Conversion to perf.-rel.allowances for depreciation for Saxoprint: +€ 0.6 m. | |
▪ | Q1-3 2019 special effects: -0.4 million euros | |
− | Effects resulting from the Saxoprint purchase-price allocation: -€ 0.2 m. | |
− | Effects resulting from the Laserline purchase-price allocation: -€ 0.2 m. |
Strict cost management maintains the drop in earnings
35 | under control | Rounding differences may occur. |
1.4 Other
Business Segment Other Q3
in Euro millions
Turnover | +12.3% | ||||||||||
1.4 | 1.6 | ||||||||||
0.6 | 0.8 | 1.0 | |||||||||
2016 | 2017 | 2018 | 2019 | 2020 | |||||||
EBIT | |||||||||||
-0.8 | -0.9 | -0.7 | -0.3 | -0.2 | |||||||
2016 | 2017 | 2018 | 2019 | 2020 |
Structural and corporate costs and profits from real estate property and the acquisition of stocks are shown in the Other business segment.
- The 1.6 million euros in turnover is to be exclusively allocated to futalis (Q3 2019: 1.4 million euros)
-
EBIT mainly improved through futalis: futalis
continues to grow most positively, with earnings moving towards break even - IR costs also lower than in the previous year
Segment for other business raises turnover and improves earnings
Rounding differences may occur.
37
Business Segment Other Q1-3
in Euro millions
Turnover | +17.3% |
Structural and corporate costs and profits from real estate property and the acquisition of stocks are shown in the Other business segment.
4.0 | 4.7 | ||
1.5 | 2.2 | 2.8 | |
▪ The 4.7 million euros in sales is to be exclusively allocated to futalis (Q1-3 2019: 4.0 million euros)
2016 | 2017 | 2018 | 2019 | 2020 |
EBIT
-0.5 | ||||||
-2.2 | -2.3 | -1.7 | -1.5 | |||
2016 | 2017 | 2018 | 2019 | 2020 |
- EBIT mainly improved through futalis: futalis
continues to grow most positively, with earnings moving towards break even - IR costs also lower than in the previous year, mainly thanks to the change from a (physical) Annual General Meeting in June to a virtual online AGM in October 2020
Segment for other business raises turnover and improves earnings
38 | Rounding differences may occur. |
2.
Group Results Q2 2020
Group Turnover Q3
in million euros
152.7 | ||||
130.3 | 137.2 | 1.4 | 136.3 | |
128.6 | ||||
1.0 | 10.2 | 1.6 | ||
0.8 | ||||
0.6 | ||||
11.8 | 9.0 | |||
12.9 | 13.0 | 24.8 | ||
15.4 | ||||
23.9 | ||||
19.7 | 20.2 | |||
100.5 | 116.2 | 110.4 | ||
95.4 | 96.3 | |||
2016 | 2017 | 2018 | 2019 | 2020 | ||||
Pho tofinishing | Commercial Online-P rint | Retail | Other | |||||
-10.7%
fx-adj.:-10.1%
Retail: -12.5%(fx-adj.:-7.0%)
Commercial Online-Print:-38.1%(fx-adj:-38.2%)
Photofinishing: -5.0%(fx-adj:-4.6%)
After the lockdown and shop closures of Q2, retailing settles again at a strategy-related level of decline in sales typical for pre-coronavirus times
Commercial online printing slightly reduces the Q2 decline in turnover (Q2: -56.6%). However, due to the coronavirus, this reduction still falls far short of that of the previous year
Coronavirus-related change in holiday travel behaviour reduces photofinishing Q3 turnover
Rounding differences may occur.
Photofinishing below previous year mainly because of coronavirus-induced changed holiday travel behaviour, retailing returns to its pre-coronavirus inclination, COP better than in Q2 but still strongly impacted by the coronavirus
40
Group Turnover Q1-3
in million euros
391.7 | 427.2 | 413.3 | ||
4.0 | 4.7 | |||
364.6 | 364.9 | 2.8 | ||
31.2 | ||||
24.0 | ||||
1.5 | ||||
2.2 | 35.1 | |||
75.1 | 48.8 | |||
40.2 | 38.0 | |||
-3.3%
fx-adj.:-2.8%
Retail: -23.0%(fx-adj.:-18.6%)
Turnover development in Retail and Commercial Online-Print effected by
73.0
60.8 60.7
262.0 264.0 280.8
316.9 335.7
Commercial
Online-Print:-35.0%(fx-adj.:-35.1%)
Photofinishing:
+5.9% (fx-adj.: +6.1%)
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 compensates decrease in other segments: "stay-at-home-effect" brought additional growth
Rounding differences may occur.
2016 2017 2018 2019 2020
Pho tofinishing Comme rcial Online-P rint Retail Other
Growth in photofinishing partially compensates for the primarily coronavirus-related decline in other business divisions
41
EBIT
Q3
in Euro millions
-0,3 | Photofinishing | ||||
-0.8 | |||||
-0.1 | Commercial Online- | ||||
-0.9 | |||||
5.6 | 4.5 | Retail | |||
Other | |||||
4.1 | 3.6 | ||||
-1.8
2.6
-0.1
0.4-0.7 0.8 -0.8 0.2
--0.3
0.1 --0.1-1,6
-0.5
-0.2-0.1
-1.7
2016 | 2017 | 2018 | 2019 | 2020 |
operating profit before | |||||
Q1-3 | special items: | ||||
5.5 million euros | |||||
in Euro millions | (+4.6 million euros vs. PY) | ||||
-0.4 | -5.0 | ||||
-0.4 | |||||
-2.2 | |||||
-2.3 | 8.6 | ||||
6.1 | |||||
5.7 | |||||
4.1 | -3.7 | ||||
3.2 | |||||
2.2 -3.5 | 2.6 | -2.3 | |||
0.5 0.2
-1.5-0.5
-0.8-0.6
-1.7
-2.0
-0.8-3.7
2016 | 2017 | 2018 | 2019 | 2020 |
With earnings head start into the fourth quarter: Photofinishing more than compensates for declines in earnings in COP and Retail - even including the restructuring provisions posted in H1 for Retail
42 | Rounding differences may occur. |
3.
Financial details
Consolidated profit and loss account Q3
Figures in millions of euros | Q3 2019 | Q3 2020 | ∆ as % | ∆ m€ | ||||
Revenues | 152,7 | 136,3 | -10,7% | -16,4 | Corona-related decline in all business areas | |||
Increase / decrease in finished and unfinished goods | 0,1 | -0,1 | -222% | -0,2 | ||||
Other own work capitalised | 0,2 | 0,4 | 58,1% | 0,1 | ||||
Other operating income | 5,4 | 4,6 | -15,1% | -0,8 | Cost of material following reduced turnover | |||
Cost of materials | -44,1 | -37,6 | -14,8% | 6,5 | ||||
Gross profit | 114,3 | 103,6 | -9,3% | -10,7 | Reduced personnel costs results essential | |||
Personnel expenses | -46,3 | -43,4 | -6,2% | 2,9 | from restructuring COP | |||
Other operating expenses | -54,6 | -48,3 | -11,5% | 6,3 | ||||
EBITDA | 13,3 | 11,8 | -11,2% | -1,5 | (+) Cost savings in administrative and marketing | |||
Amortisation/Depreciation | -13,9 | -13,5 | -2,6% | 0,4 | costs | |||
Earnings before interest, taxes (EBIT) | -0,5 | -1,7 | 216% | -1,1 | (-) Costs for mailorder-logistics | |||
Financial income | -0,1 | 0,0 | -107% | 0,1 | ||||
Financial expenses | -0,3 | -0,4 | 12,8% | 0,0 | ||||
Financial result | -0,5 | -0,4 | -19,2% | 0,1 | ||||
Earnings before taxes (EBT) | -1,0 | -2,0 | 105% | -1,0 | ||||
Rounding differences may occur.
Photofinishing and Commercial Online-Print affected by the corona situation in Q3 With Q3 result the Group EBIT after 9 months is EUR 1.4 million ahead of PY
44
Balance Sheet at 30 September
Assets | ||
in Euro millions | 513.7 | 493.7 |
407.0 |
Depreciation of the last 4 quarters exceed investments by € 13.1 million, € 12.6 million of the depreciations account for IFRS 16 Rights of Use (Leasing)
Liabilities | |||
Positive result of the | |||
in Euro millions | last 4 quarters and | ||
513.7 | 493.7 | dividend payment | |
not yet made as of | |||
30.09.2020: | |||
407.0 | + € 25.5 million | ||
308.6 | 342.9 | ||||
379.5 | 368.4 | ||||
Non-current | 218.8 | 279.2 | |||
189.1 | |||||
assets | |||||
Current | 134.3 | ||||
124.1 | 127.8 | 125.2 | |||
assets 119.5 | |||||
2016 | 2017 | 2018 | 2019 | 2020 |
Depreciation of leasing assets reduces non-current assets Equity ratio strong at 53.2%, w/o IFRS 16 even at 60.3%1
45
Equity
Non-current liabilities Current liabilities
Current receivables from income tax refunds due to decline in advance payments: - € 7.7 million
Current trade receivables due to decline in orders in COP:
- € 5.2 million
Inventories due to inventory build-up for instant-print POS business, at the same time stock reduction of hardware for Retail business:
+ € 3.3 million
308.6 | 342.9 | 236.9 | 262.4 | ||
= 46.1% | |||||
IFRS 16 Long-term | |||||
214.1 | Equity ratio | = 53.2% | leasing liability: | ||
- € 4.9 million | |||||
Equity ratio | |||||
194.0 | 95.3 | ||||
175.4 | 92.4 | ||||
35.8 | Repayment of | ||||
current interest- | |||||
30.8 | |||||
33.5 | bearing financial | ||||
157.1 | 181.5 | liabilities: | |||
118.1 | 138.9 | - € 40.4 million | |||
99.7 | |||||
Purchase price | |||||
2016 | 2017 | 2018 | 2019 | 2020 | tranches for |
previous | |||||
acquisitions: | |||||
- € 4.5 million | |||||
1 With dividend payment, the equity ratio would be 50.2% and without IFRS 16 at 57.00%
Rounding differences may occur.
From Balance Sheet to Management Balance Sheet
Balance Sheet
Equity
Non-current assets
Non-current
liabilities
Current assets | Current | |
liabilities | ||
Balance Sheet total: 494 million euros
Short-term operative debts/ non-interest-bearing liabilities:
112 million euros
Management Balance Sheet
Non-current | Equity | |
assets | ||
Gross financial | ||
liabilities | ||
Working Capital | Non-operating | |
liabilities | ||
Balance sheet total: 382 million euros
The balance sheet total is reduced to capital elements "to be paid for" (by way of dividends or interest) in the management balance sheet
46
Management-Balance Sheet
Capital Employed in Euro millions
400.3 | 382.5 |
Depreciation of the last 4 quarters exceed investments by € 13.1 million,
- 12.6 million of the depreciations account for IFRS 16 Rights of Use (Leasing)
Capital Invested | ||
Positive result of | ||
in Euro millions | ||
the last 4 quarters | ||
400.3 | and dividend | |
382.5 | payment not yet | |
made as of | ||
30.09.2020: | ||
+ € 25.5 million |
304.4 | |||||
255.0 | |||||
219.8 | 379.5 | ||||
368.4 | |||||
Non-current | 218.8 | 279.2 | |||
assets 189.1 | |||||
Cash | 15.3 | 13.7 | 13.0 | 13.2 | 16.9 |
15.4 | 22.5 | 12.1 | |||
WorkingNet | 7.7 | -2.9 | |||
2016 | 2017 | 2018 | 2019 | 2020 |
Capital
Operating net W/C
Current trade receivables due to a decline in orders in COP business:
- € 5.2 million
Inventories due to inventory build-up for on-site finishing, at the same time stock reduction in retail business:
+ € 3.3 million
Other net W/CLower current receivables from income tax refunds due to lower prepayments:
- € 7.7 million
Purchase price tranches from previous acquisitions:
- € 4.5 million
Equity
Gross financial liabilities
Non-operating liabilities
304.4 | 236.9 | |||||
255.0 | 262.4 | IFRS 16 lease | ||||
219.8 | liabilities | |||||
- € 4.9 million | ||||||
214.1 | Interest bearing | |||||
194.0 | financial liabilities: | |||||
175.4 | - € 40.4 million | |||||
123.7 | 78.0 | |||||
56.2 | ||||||
10.9 | 30.6 | 39.7 | 42.1 | Pension accruals | ||
34.1 | ||||||
33.5 | 30.4 | + € 3,5 million | ||||
2016 2017 2018 2019 2020
Rounding differences may occur.
Capital Employed reduced
Cash still strong, although interest bearing liabilities paid back
47
Capital employed I: T-3
Figures in € million | Jun. 30, 2020 | Sep. 30, 2020 | ∆ as % | ∆ as m€ | |||||||
Property, plant and equipment | 214.6 | 216.6 | 0.9% | 2.0 | (+) Investments in On-site finishing | ||||||
Investment Property | 17.5 | 17.6 | 1.1% | 0.2 | (-) Minimal reduction of Right-of-use due to | ||||||
Goodwill | 77.8 | 77.8 | 0.0% | 0.0 | extension of a lease of a production site. | ||||||
Intangible assets | 35.0 | 33.7 | -3.6% | -1.3 | |||||||
Financial assets | 6.3 | 6.1 | -2.0% | -0.1 | (-) Scheduled depreciation of purchace price | ||||||
Non current financial assets | 1.4 | 1.4 | 0.9% | 0.0 | allocation-assets | ||||||
Non current other receivables and assets | 0.5 | 0.8 | 53.3% | 0.3 | |||||||
Deferred tax assets | 14.0 | 14.5 | 3.5% | 0.5 | (+) Build-up of Stock for photo kiosks | ||||||
Non current assets | 366.9 | 368.4 | 0.4% | 1.6 | christmas season and Boots | ||||||
(-) Hardware stocks of Retail business | |||||||||||
Inventories | 48.4 | 49.1 | 1.3% | 0.6 | |||||||
+ | Current trade receivables | 29.6 | 36.8 | 24.1% | 7.1 | (+) Receivables from photofinishing | |||||
= | Gross operating working capital | 78.1 | 85.8 | 10.0% | 7.8 | ||||||
- | Current trade payables | 59.9 | 60.4 | 0.8% | 0.5 | ||||||
= | Net operating working capital | 18.2 | 25.5 | 40.3% | 7.3 |
Rounding differences may occur.
Build-up of current trade receivables in photofinishing increases working capital
48
Capital employed II: T-3
Figures in € million | Jun. 30, 2020 | Sep. 30, 2020 | ∆ as % | ∆ as m€ | |||
+ | Current receivables from income tax refunds | 6.9 | 7.4 | 7.1% | 0.5 | (-) Reimbursement of short-time work allowance | |
+ | Current financial assets | 4.5 | 3.8 | -16.0% | -0.7 | and cash in from payment providers | |
+ | Current other receivables and assets | 10.9 | 11.3 | 3.4% | 0.4 | ||
= | Other gross working capital | 22.3 | 22.4 | 0.6% | 0.1 | (-) VAT liabilities | |
- | Current tax debts | 6.5 | 6.3 | -3.0% | -0.2 | (-) Payment of deferred social security | |
- | Other Current provisions | 7.2 | 6.6 | -8.6% | -0.6 | contributions (France) | |
- | Current financial liabilities | 6.8 | 6.9 | 2.6% | 0.2 | (+) Salary and wage related provisions | |
- | Other current liabilities | 33.6 | 31.0 | -7.9% | -2.6 | (christmas bonuses) | |
= | Other net working capital | -31.8 | -28.3 | -10.8% | 3.4 | ||
Operating net working capital | 18.2 | 25.5 | 40.3% | 7.3 | |||
- | Other net working capital | -31.8 | -28.3 | -10.8% | 3.4 | ||
= | Net working capital | -13.6 | -2.9 | -78.9% | 10.7 | ||
Non current assets | 366.9 | 368.4 | 0.4% | 1.6 | |||
+ | Net working capital | -13.6 | -2.9 | -78.9% | 10.7 | ||
+ | Liquid funds | 24.2 | 16.9 | -30.0% | -7.2 | ||
= | Capital Employed | 377.4 | 382.5 | 1.3% | 5.1 | ||
Rounding differences may occur.
Increase in net working capital half financed by liquid funds…
49
Capital invested: T-3
Figures in € million | Jun. 30, 2020 | Sep. 30, 2020 | ∆ as % | ∆ as m€ | |||||||
Equity | 263.8 | 262.4 | -0.5% | -1.4 | Operational result | ||||||
Non current provisions for pensions | 36.3 | 36.7 | 1.0% | 0.3 | |||||||
+ Non current deferred tax liabilities | 2.7 | 2.6 | -5.0% | -0.1 | |||||||
+ | Non current other provisions | 0.5 | 0.4 | -1.3% | 0.0 | ||||||
+ Non current financial liabilities | 1.9 | 1.9 | 4.0% | 0.1 | |||||||
+ | Non current other liabilities | 0.5 | 0.5 | 0.0% | 0.0 | ||||||
= | Non-operating debt | 41.8 | 42.1 | 0.7% | 0.3 | ||||||
Non current financial obligations | 1.0 | 0.9 | -8.6% | -0.1 | New lease contract for a production hall | ||||||
+ Non current lease liabilities | 47.4 | 49.5 | 4.4% | 2.1 | |||||||
+ | Current financial liabilities | 12.6 | 17.6 | 39.5% | 5.0 | Financing of operational business | |||||
+ | Current financial liabilities from leasing | 10.9 | 10.1 | -7.3% | -0.8 | ||||||
= | Gross financial debt | 71.8 | 78.0 | 8.6% | 6.2 | ||||||
= | Capital Invested | 377.4 | 382.5 | 1.3% | 5.1 | ||||||
Rounding differences may occur.
…and half financed by financial liabilities
50
Free cash flow Q3
Cash Flow from | Outflow of funds from | Free-Cash Flow | ||||||||||||||||||||||||||
operating business | investment aktivities | |||||||||||||||||||||||||||
in euro millions | ||||||||||||||||||||||||||||
in euro millions | in euro millions | |||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||
15.0 | 5.5 | |||||||||||||||||||||||||||
9.5 | 11.5 | 3.6 | ||||||||||||||||||||||||||
5.4 | ||||||||||||||||||||||||||||
1.2 | + | = -1.9 | ||||||||||||||||||||||||||
-11.4 | -7.9 | -9.4 | -10.4 | -9.1 | ||||||||||||||||||||||||
€ 13.8 million reduction through | Slight increase by | |||||||||||||||||||||||||||
- € 0.9 million (on-site finishing) | ||||||||||||||||||||||||||||
− EBITDA lower by € 1.5 million | ||||||||||||||||||||||||||||
− Non-cash effects higher by € 2.8 million | ||||||||||||||||||||||||||||
− € 14.0 million higher operating net W/C due to more build-up of receivables and less | -36.8 | |||||||||||||||||||||||||||
build-up of current trade liabilities | -42.2 | |||||||||||||||||||||||||||
− € 2.3 million payment of deferred social security contributions in France |
- Tax prepayments lower by € 1.2 million
Rounding differences may occur.
Mainly working capital effects reduce the cash flow from operating activities by 13.8 million euros Cash outflow from investing activities increased slightly by 0.9 million euros
Free cash flow fell by 14.7 million euros especially due to working capital effects
51
ROCE | 12-month EBIT | |||||||||||||||||||||||||||||||||
Average capital employed | ||||||||||||||||||||||||||||||||||
and restructuring: | ||||||||||||||||||||||||||||||||||
excluding IFRS 16 | before IFRS 16: | |||||||||||||||||||||||||||||||||
€ 64.0 million | € 319.3 million | |||||||||||||||||||||||||||||||||
12-months-EBIT | Avarage capital | ROCE * | ||||||||||||||||||||||||||||||||
employes in the past 4 | ||||||||||||||||||||||||||||||||||
in euro millions | in % | |||||||||||||||||||||||||||||||||
quarters | ||||||||||||||||||||||||||||||||||
12-month EBIT | in euro millions | |||||||||||||||||||||||||||||||||
excluding IFRS 16: | 58.2 | |||||||||||||||||||||||||||||||||
€ 54.8 million | 55.5 | Average capital | 20.7% 19.5% | 20.0%** | ||||||||||||||||||||||||||||||
employed excluding | ||||||||||||||||||||||||||||||||||
363.7 378.7 | 17.4%** | |||||||||||||||||||||||||||||||||
46.1 | IFRS 16: | = | ||||||||||||||||||||||||||||||||
44.8 | € 315.4 million | |||||||||||||||||||||||||||||||||
42.3 | 14.5% | |||||||||||||||||||||||||||||||||
291.8 | ||||||||||||||||||||||||||||||||||
15.3% | 15.4% | |||||||||||||||||||||||||||||||||
217.1 236.9 | ||||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 | 2016 | 2017 | 2018 | 2019 | 2020 |
IFRS 16 and the WhiteWall acquisition increase average capital employed to 378.7 million euros Positive development of earnings increases ROCE before IFRS 16 and restructuring to 20.0%
- ROCE = EBIT / ∅ Capital Employed. Rounding differences may occur.
- Before IFRS 16 balance sheet extension and IFRS 16 EBIT increase and LASERLINE restructuring costs
52
Outlook
EBIT classification: Hypothetical comparison with the previous year
Distribution of results Q1-3 vs. Q4
in million euros
EBIT growth Q4
in million euros
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
53.7 | 56.9 | 56.9 | ||||
47.0 | 49.3 | |||||
32.5 | 36.4 | |||||
42.9 | 46.1 | 57.5 | 58.9 | 57.5 | ||
37.3 40.8
4.1 | 3.2 | ||||||||||
-4.8 | -4.4 | -3.8-2.0 | -0.6 | ||||||||
EBIT Q1-3 | EBIT Q4 | ||||||||||
Hypothetical
comparison with the previous year
57.5 million
euros EBIT in Q4 would lead to a full year EBIT on the previous year's level
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | Hypothetical |
comparison with | |||||||
11.4 | the previous year | ||||||
Einmaleffekt aus | |||||||
6.7 | 1.4 million | ||||||
PPA Abschreibung | |||||||
3.7 | 3.4 | 2.2 | 3.1 | 1.4 | euros less EBIT | ||
in Q4 than in | |||||||
3.6 | |||||||
the previous | |||||||
-1.4 | year would lead | ||||||
to a full year | |||||||
EBIT on the | |||||||
previous year's | |||||||
level |
Typical starting position in Q4 also in this special Corona year: Even a Q4 EBIT reduction of 1.4 million euros would lead to a full year EBIT on the previous year's level
54
4. Q&A-Session
Analyst Conference Call Q3 2020
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CEWE Stiftung & Co. KGaA published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 09:34:01 UTC