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CEWE Stiftung & Co. KGaA: Reduced value added tax on CEWE PHOTO BOOK maintained in 2016

DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Forecast/Legal Matter
CEWE Stiftung & Co. KGaA: Reduced value added tax on CEWE PHOTO BOOK
maintained in 2016

20.04.2016 / 14:25
The issuer is solely responsible for the content of this announcement.

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Reduced value added tax on CEWE PHOTO BOOK maintained in 2016

- Interim arrangement leaves value added tax on photo books at 7 % until
31 December 2016

- A potential liability for CEWE is thus not applicable for the 2016
business year

Oldenburg, 20 April 2016. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE
0005403901) is now defining its forecast for the current 2016 business year
more precisely in the light of the interim arrangement for the increased
rate of value added tax on photo books published today by the German
Federal Ministry of Finance. The original increase in value added tax on
photo books in Germany, from 7 % to 19 % and valid since 25 December 2015,
has now been cushioned in an interim arrangement until 31 December 2016.
The increase in value added tax will now only enter into force as of 1
January 2017. The Board of Management is thus confirming its forecast for
2016, made on the assumption of an unchanged reduced rate of value added
tax on photo books. On the basis of the 7% rate of value added tax on photo
books, which is now to remain in effect unchanged for 2016, the Board of
Management expects Group turnover to increase slightly in 2016, from 554.2
million euros in the previous year of 2015 to an amount in an average of
555 to 575 million euros. Turnover in photofinishing is to remain
approximately stable or increase slightly, the business segment of
retailing is to show turnover to be about constant and commercial online
printing to continue to increase its turnover to around 86 million euros.
At the same time CEWE is confirming its target of generating a positive
contribution to earnings in 2016 with online printing. Group EBIT is to be
in a corridor of 38 million to 44 million euros in 2016, EBT is to be in
the range of 37 to 43 million euros, and after tax earnings between 25
million and 29 million euros. This is equivalent to an increase in the
operative EBIT target corridor of around six million euros in comparison to
the targets for 2015. Initial calculations show that the increase in value
added tax would have reduced the 2016 EBIT by around 9 million euros, for
example also due to a potential drop in demand as a result of price