Cewe to change legal form

According to a press release, a dividend of EUR 1.45 per denominated participating share is being paid out for the 2012 business year, an increase of 5 cents per share over the previous year’s dividend. The dividend yield is 4.7 % (on the basis of the share price at the end of 2012). “In addition to our investments in expanding our growth sector of online printing, our sound financing, with a capital ratio of 44.6 % on 31 March 2013, the considerable earning power of the Group and its strong free cash flow have all made it possible to significantly increase the dividend paid out to our shareholders,” says Dr. Rolf Hollander, Chairman of the Board of Management of Cewe Color Holding AG.

The Annual General Meeting of Cewe Color Holding AG has resolved with a large majority (96.7% of the votes) that the company will in future operate under the name of Cewe Stiftung & Co. KGaA. All the operative Cewe business will be conducted in Cewe Stiftung & Co. KGaA, which means that a structural tax disadvantage will no longer apply. In the coming few years, the tax benefit will probably amount to a cash value of around EUR 10 million. “The substantial tax benefit creates added value for our shareholders. Over and above this, the change in form gives us the benefits of a stock-exchange listed family business with a long-term focus, which we are combining with a legal form with which international capital markets are familiar as well as with even clearer Corporate Governance principles,” says Financial Director Dr. Olaf Holzkämper.

The Annual General Meeting resolved with a large majority that the current Supervisory Board members of Cewe Color Holding AG – Prof. Dr. Dr. h.c. Hans-Jürgen Appelrath, Prof. Dr. Christiane Hipp, Otto Korte, Corinna Linner, Prof. Dr. Michael Paetsch, and Dr. Hans-Henning Wiegmann – are to be members of the future Supervisory Board of Cewe Stiftung & Co. KGaA. Otto Korte will stand as a candidate for the post of Chairman of the Supervisory Board at the constituent Supervisory Board meeting of Cewe Stiftung & Co. KGaA.

The Board of Management expects to see more growth, with expectations based on the positive first quarter of 2013. Full-year turnover in the growth sector of online printing is to increase by 40 %, to EUR 60 million, with Group turnover rising by up to 5 %, to EUR 510 to 530 million. Due to investments in online printing, the aim for EBIT is in the range of EUR 27 to 33 million in 2013, and EUR 2.44 to EUR 3.06 is targeted for earnings per share.