August 2010 Chart..
Chart 2 Key facts Concise profile. Innovation with tradition. offers premium home media and home entertainment systems with award-winning winning design, innovative technology and maximum ease of use. Core markets for are Germany and other key European countries. Approximately 60% of sales revenues are generated in the domestic market. Founded in 1923, is based in Kronach, Germany, and employs more than 1,000 persons mainly in its R&D, production, marketing and sales department. Si J l 1999 L h b li t d Since July 1999, has been a listed company. Major shareholders are Sharp (28.8%), Management and Corporate Bodies of the Company (14,8%) and EQMC Fonds, London (10,1%).
Chart 3 Key facts - What s different about? is committed to offer outstanding premium products to sophisticated customers. Excellent picture and sound quality, outstanding craftsmanship. Award winning cosmetic design. Target group oriented and most individual product solutions. Ease of use / intelligent integration of peripheral equipment. Exclusive distribution and outstanding service.
Market development - Growth potential Flat-TV. Chart End of 2010 0 more than 70% of European households own a Flat-TV. 4 Flat-TV penetration in European households end of 2010: In Europe,148 mn households own more than 300 mn TV-sets (average >2 sets per household). 8% 27% 65% End of 2010, more than 70% of all households own a Flat-TV (65% LCD and ~8% Plasma). First replacements of Flat-TVs take place due to the considerably improved picture quality and more features like connectivity or 3D. Additional demand for a second or third Flat-TV in the households rises. A 32 inch TV becomes more and more a second TV. own a LCD-TV own a Plasma-TV do not own a Flat-TV Positive impact by more and more switching off Analogue-TV and availability of channels with HDTV standard. Source: GfK preliminary data end of 2010
Chart 5 Market development Total TV market Europe. LCD-TV generates further growth also in the future. EUR mn. 21.927 21.687-2% +9% 23.644 +6% 25.135 +5% 26.392 +1% 26.671 +2% 27.152 Source: Backdata GfK (EU 10), Market Research Forecast 2014
Market development - LCD-TV market from 32. Chart Share of sales revenues e of LED/3D/4Kx2K. / 6 In 2014 LED Edge and Direct will have replaced CCFL. EUR ths. 20.000000 19.890 21.566 20.603 22.150 22.063 Strong sales increase of LED with 3D technology within LCD-TV. 25.000 Super high resolution panel 4Kx2K (4,000x2,000 pixels) 22.783 also 3D Ready. 15.000 15.297 17.934 16.347 11.066 10.000 9.021 5.000 0 1.449 1.298 2.683 13% 7% 6.739 4.687 30% 22% 2009 2010 2011 2012 2013 2014 Total Market LED Edge/Direct LED 3D / 4Kx2K 40% Source: Backdata GfK (EU 10), Market Research Forecast 2014
Strategy. Chart Reduction to the essentials: s Clear focus on three central brand values. 7 Exclusive Individuality Meaningful Innovation Minimalist Design
Product & Pricing. Chart TV product range 2011. 8 Reference Individual Connect Art Individual Compose Art SL Individual Selection Connect Art 3D Reference Individual Compose 3D Connect 3D Xelos SL Media
Product & Pricing. Chart Audio/Video product range 2011. 9 Reference Individual Compose Individual Selection Art Connect Reference Mediacenter Individual Mediacenter Multiroom System Universal Speaker Assist Media Reference Standspeaker Slim Multiroom Receiver On / In wall Multiroom Display Individual Sound Family Soundprojector Subwoofer Highline S1 Standspeaker Slim L1 Wireless Rear Reference Sound Subwoofer Sub I Sound AudioVision BluTech Vision Interactive Viewvision DR+ DVB-T Viewvision
Chart 10 Product and Pricing. 130% price premium of LCD-TV 40 LED. added values: 3.500 3.917 EUR Average RSP specialist retail trade Individual 40 Compose LED 400 DR+ Modular & flexible home cinema system DR+ 400Hz HDTV-Tuner / Twin-Tuner DVB-T/C/S / Full-PIP 3.000 Sound concept with versatile options +130 % Dolby Digital / DTS 2.500 Connectivity Outstanding design / finest materials 2.000 1.500 1.000 1.705 EUR 1.462 EUR Average RSP classic specialist retail trade w/o 40 LCD-TV with LED/Full HD/>=200Hz Average RSP total t market w/o 40 LCD-TV with LED/Full HD/>=200Hz Individuality High quality manufacture / product quality Individual expert advice / retailer service Extraordinary brand ( Market Research, Germany 11/2010)
Product & Pricing. Chart e Art, Connect, Individual: dua Successful into the fiscal year 2011. 11 Top arguments: Connect. s multimedia talent: even flater, even more stylish, even more competent. Individual product family. Two new screen sizes completed the new Individual id family. Individual Sound. Unique variety of sound options for every room and every need. Art. Simply more elegant: Art fascinates a with timeless ess design. Reference. New: a noble wall solution is available for Reference TV. Mediacenter. Combines numerous audio and video sources in one device.
Product & Pricing. Chart Meaningful technology ogy that fascinates ates accross different product lines. 12 Top arguments: Filter screen Filter screen. Better picture, more elegant appearance for Connect, Individual und Reference. DR+ Streaming LED / 400Hz LED Backlight / 400 Hz. For an impressive picture performance up to 400Hz for Art, Connect und Individual. MediaPortal LED Backlight (up to 400Hz) MediaText MediaPortal. The intuitive graphic user interface for all TV and multimedia contents including internet t access. DR+ Streaming. Transfers recordings from the DR+ harddisc via the network to the entire house. MediaText. Thanks to HbbTV-standard already now ready for the videotext of the future. 3D-products. 3D-product offensive will start at the end of Q1/2011.
Chart 13 Product & Pricing. Meaningful ea g u tec technology o ogy us using g tthe ee example a peo of DR+ Streaming. Top arguments: Distribute not only perfect sound but also brillant pictures in the entire house now. Transfer recordings from a DR+ TV-set via the network to another TV-set. Access from every network capable TV-set to a DR+ harddisc in the network. With Follow-me-function: Stop the live program on the sending TV and continue on the receiving TV. During the access all DR+ functions are still available on the th sending di TV to t the th full f ll extent. t t It is not necessary that the receiving TV is featured with DR+. Connection is possible via LAN LAN, PowerLine and even totally wireless via WLAN. DR+ Streaming with Follow-me-function: Stopping and recording of contents Connecting e.g. via WLAN Pl i off recorded Playing d d contents t t
Chart 14 Placement - Premium distribution. Development eop e of e Galleries. es Gallery Como Gallery Frederikshavn Gallery Amsterdam Gallery Brussels
Chart 15 Promotion - Premium communication. Create an integrated value-oriented brand experience.
Chart 16 Promotion the leading premium brand. Awards and design prizes. Label Observeur du design 2011 by APCI, Paris for the Individual TV family. Good Design Award 2010 by Chicago Athenaeum for the Individual TV family. red dot award: communication design 2010 for the annual report 2009: Value. Development. IFA PreView Awards 2010 for the new TV-line Individual id and the MediaNet. reddot award: product design 2010 reddot for Art 32 SL, reddot: best of the best for Reference System. if product design award 2010 for Reference Mediacenter on Floor Stand, Remote Control Assist Media and TV Xelos 32 SL. 3 if gold awards 2010 for Reference Flat-TV, Reference Sound Standspeaker and Reference Floor Panel Medium.
Promotion the leading premium brand. Chart Latest test reports: e.g. e Art. 17 Test report As ever premium target groups place importance on individuality. With its Art 40 No LED other 200 home DR+ entertainment impressively system guarantees more demonstrates creative that latest freedom technology, than the a rich Individual. equipment of features and an appealing design can be perfectly combined. Introducing Picture- a technology and sound that makes quality the televisual are utterly outstanding. experience In more addition spectacular the flat-tv and ismultifaceted so than ever easy to operate before. like no other. With 97,6% and the test result very good" the TV allrounder managed to gain rank 1 of ourindividual LCD-TV- provides: list of the a best complete even3d system without 3D..." screen, Blu-ray player and glasses, as of April 2011. Individual provides: the 3D version both with optimised front panel ( Individual Compose) and high gloss frame ( Individual Selection). Individual provides: premium picture quality with LED Backlight and up to 400Hz picture quality, fascinating audio components, and multifaceted multimedia and Internet options. Individual provides: countless design and set-up options. SatVision 1-2011 + icon choice
Promotion the leading premium brand. Chart Latest test reports: e.g. e Individual. dua 18 Test reports Important selling points As ever premium target groups place importance on individuality. With its 400Hz technology, the test candidate achieved the best motion Recording and timeshift No posed other no home entertainment system guarantees more sharpness we ve ever seen on a problem during the test creative as all the freedom than the Individual.. main functions are more or less self- explanatory. Introducing a technology that makes the televisual experience more spectacular and multifaceted than ever before. Individual provides: a complete 3D system screen, Blu-ray player and glasses, as of April 2011. Through an automated calibration process [ ] the Sound Projector succeeds in creating Individual a provides: the 3D version both with realistic surround sound environment optimised (up to 7.1!) front panel ( Individual Compose) and During the test, it convinced us from start high to gloss finish frame ( Individual Selection). [ ]. Individual provides: [ ]The premium features picture and workmanship quality with LED Backlight and up in particular, to 400Hz picture with their quality, almost fascinating audio components, inexhaustible and possibilities, multifaceted almost multimedia and Internet achieve options. the maximum score, even without 3D TV. Individual provides: countless design and set-up options. Heimkino 9/10 2010 + icon choice
Promotion the leading premium brand. Chart Latest test reports: e.g. e Connect. 19 Important selling points A test by Focus TV shows clearly how well TVs can function via DSL and Younger target WLAN groups with with purchasing smooth-flowing power images expect Test report more and more and from picture their quality TV limitless that far networking exceeds and multimedia options simple that online t are easy videos, to use. such as those on This was where YouTube. the first Connect was a Picture and sound quality are first rate trendsetter. and But the new Connect sets new the recording and streaming functions standards. are a real highlight. g Congratulations! Connect provides: the latest and to date fastest WLAN standard IEEE 802.11n The audio for maximum quality also performance wireless connection. deserves real praise; receiving With DR+ Streaming a rating of very good despite we were able, via the Connect provides: its slim-line MediaNet housing. for exciting network, to carry on online applications with free web browser; simple watching a programme connection of digital cameras, MP3 payers, computers, in the bedroom that not to mention unique DR+ Streaming. we had started and then paused earlier in the living room. Connect provides: brilliant picture quality with contrast filter panel, LED Backlight and up to 200Hz. Connect provides: unique, integrated DFW sound Installation and start-up also technology came off with downward-emitting woofers. With the new media concept, without a hitch thanks to the clearly Connect provides: extremely demonstrates slim, high-quality how the compiled instructions and a highly userfriendly and comprehensible compellingly on-screen contemporary and television design. has donned the menu. director s cap in digital entertainment and information media. Heimkino Jan/Feb 2011 Topic: LED TV with time shift and room shift
Financials FY 2010 preliminary key figures. Chart Fast Forward future program reports first success. 20 Sales revenues: EBIT: EUR 307.3 3 million (2009: EUR 324.0 million) EUR -5.3 million (2009: EUR +13.5 million) Q4/2010: EUR +3.8 million Gross margin: 22.8% (2009: 29.2%)
Chart 21 Future Program Fast Forward. Already started in June 2010 with the target to significantly increase the efficiency of the entire company. First concrete results: - Positive contribution to earnings in Q4/2010 of EUR 3.8 million - Purchasing offensive - Reorganisation of R & D, marketing and sales - Product offensive - Cost cutting. A highly innovative company combines quality with speed.
Chart 22 Future Program Fast Forward. Purchasing offensive. Short-term Possibilities to reduce purchasing costs. All options are being taken into consideration (negotiating terms and conditions, bundling of volumes etc). At the same time, we are working in close cooperation with our suppliers. It is our short-term target to reduce purchasing costs in the single-digit percentage range. Medium to long-term The increased use of platforms to realize volume effects from bundling purchasing orders and reducing complexity. We are also looking at shifting components to suppliers both inside and outside Europe. We expect to reduce purchasing costs in the double-digit di it percentage range over the medium- to long-term here. Possible options are currently being discussed. employs strict cost discipline across all divisions.
Chart 23 Future Program Fast Forward. Development and Marketing & Sales. Performance boost in critical central functions, focusing on Development and Marketing & Sales. Marketing & Sales will be reviewed in terms of efficiency and effectiveness. We will take a look at the way Sales is organized both on the national and international level. Effectiveness and efficiency are also key topics in Development, where we aim to further reduce time-tomarket as well as product costs in order to respond more flexibly to customer demands from both dealers and consumers. Product costs and purchasing costs are also determined by what customers are willing to pay for. It is our objective to remain a highly innovative company.
Chart 24 Future Program Fast Forward. New management structure of the Group. Chief Executive Officer, Finance and Services Oliver Seidl Investor Relations Internal Audit Strategic Company Planning Finance and Accounting Christoph Schülner Controlling Kurt Wölk Human Resources Dieter Saalfrank Information Technology Oliver Fischer Quality Thomas Günther Public Relations Technology Gerhard Schaas Patent Issues/Supported Projects R & D Roland Bohl Production and Disposition Michael Gödel Purchasing and Logistics Andreas Würke Marketing and Sales Manfred L. Fitzgerald Marketing Henrik Rutenbeck Sales Peter Biok Customer Services Jens Härtel Design Edmund Englich Dr. Roland Raithel Project Management Werner Meyer
Chart 25 Future Program Fast Forward. LED- and 3D-product offensive. intensifies the LED-product offensive. Individual 55 Compose and Individual 32 Selection and Compose (now 32, 40, 46 and 55 inches). New Connect LED in the screen sizes 26, 32 and 40 inches. Art in the screen sizes 32 and 40 inches, of course also featuring latest LED technology. End of Q1/2011 the first (of a total of ten) 3D TVs will be introduced to the market. Kommentierung neu It is our objective to remain a highly innovative company.
26 Outlook - Development of sales revenues. Chart Forecast FY 2011: expects growth in sales of approx. 10% to EUR 340 million. In 2010 sales revenues decreased by 5% to EUR 307.3 mn mainly due to: - price adjustments in the TV entry segment 400,0 372.5 374.0 - delayed product introductions for the Football World cup business 350,0 300,0 341.9 28,5 10,8 32,7 20,1 26,8 23,6 324.0 20 23,5 307.3 340.0e - necessary elimination of TVs with standard backlighting g from the product range. 250,0 200,0 150,0 302,6 319,7 323,6 280,5 100,0 50,0 0,0 2006 2007 2008 2009 2010*) 2011e TV Audio/DVD Others *) 2010: preliminary key figures
27 Outlook - Development of EBIT. Chart Forecast FY 2011: expects positive EBIT. In 2010 generated negative EBIT of EUR 5.3 mn due to: 35,0 30,0 25,0 21.1 28.5 - the significantly lower sales and production volume - necessary price adjustments - and higher purchasing costs (especially for LCD panels highly in demand). 20,0 15,0 13.2 13.5 10,0 5,0 00 0,0-5,0-10,0 2006 2007 2008 2009 2010*) 2011e -5.3 *) 2010: preliminary key figures
Chart 28 Outlook - Mid-term upside potential. Top arguments: At an early stage initiation of the comprehensive future program Fast Forward. European large-screen LCD-TV-market continues to offer growth potential. Very good positioning in the attractive premium LCD-segment. Market polarization will continue. Solid capital structure. Mid-term target: Sales growth and consistent profit orientation.
Chart 29 Corporate calendar 2011. Date Event Location January 27, 2011 Preliminary Key Figures FY 2010 *) Kronach March 24, 2011 Financial Statements Press Conference - 09:30h am Munich March 24, 2011 DVFA Analysts' Conference - 04:00h pm Frankfurt May 4, 2011 Group Interim Report Q1 2011 *) May 26, 2011 Annual Shareholders' Meeting - 11:00h am August 3, 2011 Group Interim Report First Half 2011 *) November 3, 2011 Group Interim Report 9M 2011 *) Kronach Munich Kronach Kronach *) Conference Call at 10:00h am German time
30 Investor Relations. Ticker symbol: LOE +++ Security code: 649410 +++ ISIN Code: DE0006494107. shares are traded in the Prime Segment of the German Stock Exchange. AG +++ Investor Relations +++ Industriestrasse 11 +++ 96317 Kronach +++ Germany. Please feel free to contact: Axel Gentzsch +++ Anja Fröba Phone: +49 9261 99-984 +++ Fax: +49 9261 99-994 Mail: ir@loewe.de +++ Web: www.loewe.de.