CEWE STIFTUNG & CO.

CWC
Real-time Estimate Quote. Real-time Estimate  - 01/27 03:59:58 pm
113EUR +2.73%

Conference call: Results Q3/2020

11/12/2020 | 04:43am

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

1

2

3

4

5

6

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
    1. 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
    1. 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

  1. Corporate Development by Business Segments
    1. Photofinishing
    2. Retail
    3. Commercial Online-Print
    4. Other
  2. Group Results
  3. Financial Details
  4. Q&A-Session

6

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

9

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

23

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

24

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.

25

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

27

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

29

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.

30

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.

31

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.

33

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.

34

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

Print

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

Disclaimer

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

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