DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Final Results/Results Forecast CEWE wants to continue to enhance its earning power in 2016 as well 23.03.2016 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- CEWE wants to continue to enhance its earning power in 2016 as well - Corporate targets all reached in 2015 - ROCE increases to 17.4% - CEWE ends 2015 with a capital ratio of 52.7% - Seventh consecutive dividend increase sought: 1.60 euros per share - Value Added Tax situation for photo books remains unclear - EBIT target corridor for 2016 raised by six million euros Oldenburg/Frankfurt am Main, 23 March 2016. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) achieved all its corporate targets in the business year of 2015. The Board of Management and the Supervisory Board will propose the seventh consecutive dividend increase at the Annual General Meeting. The company is aiming for more earnings-oriented growth in 2016: The Board of Management expects earnings to rise at all operative earnings levels, with the earning power in photofinishing business, and a positive result in the growth segment of commercial online printing and retailing contributing to this rise. This was announced by CEWE during the Annual Report and Analysts' Press Conference held today in Frankfurt am Main. "We have undertaken to continue to reinforce the CEWE brand, to press ahead with innovations in our existing business segments, to open up new business segments while limiting risks and have our shareholders participate in our growing income in future as well," says Dr. Rolf Hollander, Chairman of the Board of Management of CEWE Stiftung & Co. KGaA. Customers increasingly making conscious decisions in favour of CEWE brand products In 2015 turnover increased to 554.2 million euros (previous year of 2014: 523.8 million euros), thus clearly exceeding the target of 515 million to 535 million euros. "We have benefited from our growing portfolio of added-value products, and also increasingly from the high level of brand awareness of our products. Customers' awareness of CEWE quality is increasing steadily," Dr. Hollander points out. In this context, according to a GfK analysis conducted in Germany in January 2016, the supported brand awareness of the CEWE PHOTO BOOK increased from 60% to 70% in comparison to the previous year. Unsupported brand awareness improved from 38% to 44%. Dr. Hollander: "We will continue to resolutely develop this CEWE brand strength, in which we made targeted investments in previous years." EBIT increases more than proportionately Operative earnings (EBIT) increased by 13.0% to 36.8 million euros in the business year of 2015 (2014: 32.6 million euros; EBIT target for 2015: 32 million to 38 million euros). The EBIT would even have exceeded the 40-million euro mark after adjustment by non-recurring effects such as restructuring expenses and depreciation on goodwill in the total amount of 3.6 million euros. After-tax earnings increased from 21.4 million euros to 22.7 million euros (target: in the range of 20 million to 24 million euros). Earnings per share increased to 3.24 euros, and were thus within the target corridor of 2.87 to 3.45 euros (2014: 3.07 euros). The return on capital employed (ROCE) improved once again to reach 17.4% in 2015 (2014: 16.8%). The Board of Management and the Supervisory Board have decided that on the basis of the positive development in earnings and a sound capital ratio of 52.7% (2014: 51.1%) to propose a dividend of 1.60 euros per share for the business year of 2015 (previous year: (1.55 euros per share) to the shareholders at the Annual General Meeting on 1 June 2016. CEWE is thus aiming for the seventh consecutive dividend increase. On the basis of the price at the end of 2015, shareholders are achieving a dividend yield of 2.9 % with the dividend proposed. CEWE increases fourth-quarter turnover by 10.8 per cent The trend towards a seasonal shift continued into the fourth quarter of 2015: for years now, CEWE has been generating a growing share of its turnover and earnings in the Christmas quarter. While operative earnings (EBIT) for the first three quarters were still at -4.2 million euros, the final quarter of the year contributed sales of 215.8 million euros, around 10.7% higher, thanks to the strong Christmas business. The EBIT in the fourth quarter increased by as much as 9.9%, to 41.0 million euros (Q4 2014: 37.3 million euros). CEWE thus generated around 38.9% of its total annual turnover and far more than 112% of its income in the vital fourth quarter. As in previous year, the higher-margin, added-value brand products, such as CEWE PHOTO BOOKS, CEWE CALENDERS, CEWE CARDS and CEWE WALL PICTURES were the most important sales drivers. This is why the turnover per photo increased by 10.6%, from 20.44 eurocents to 22.6 eurocents in the same quarter of the previous year. In the peak weak in December as much as more than a third of all the image data processed by CEWE originated from mobile devices. Core business of photofinishing drives up sales and earnings The biggest CEWE business segment exceeded expectations in the 2015 business year: at 414.9 million euros, turnover increased over that of the previous year by 7.5%, with EBIT, at 40.4 million euros, exceeding the figure for the previous year by a million euros, and by as much as four million euros before extra expenses. CEWE achieved a turnaround in operative earning in retailing: with a decline in turnover to 60.8 million euros (2014: 67.3 million euros), which was knowingly accepted due to repositioning in Poland, CEWE generated a balanced operative result before restructuring costs in the amount of 0.1 million euros, after a loss of 2.9 million euros in the previous year. Commercial online printing on the other hand grew as planned by 10.4% to 77.8 million euros, with the high-potential segment reaching the operative break-even a year earlier than planned and improving its EBIT by 1.9 million euros. Adjusted by the accounting effect resulting from the purchase price allocation from the Saxoprint takeover (2.1 million euros), the EBIT reached 1.2 million euros. Unclear situation concerning Value Added Tax on photo books CEWE believes that the increase in Value Added Tax on photo books from 7% to 19% in Germany and from 10% to 20% in Austria, which may have entered into effect on 25 December, could possibly be revoked or at least cushioned by way of an interim arrangement. The increase in Value Added Tax is based on a decision taken by the EU Customs Tariff Committee which allocated photo books to a new customs tariff (source: http://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX%3A32015R2254). Since VAT legislation in Germany and Austria is based on these EU customs tariffs, the decision resulted in an, albeit unintended, increase in the national rate of Value Added Tax at an EU level. Photo books in the Netherlands, the United Kingdom and many other countries are still either not taxed at all, or a reduced tax rate applies. Because the current situation concerning Value Added Tax on photo books remains unclear, CEWE has based its annual planning on the unchanged rate of Value Added Tax which applies for photo books. Should the increase in Value Added Tax be effective, current estimations show that the influence of Value Added Tax on the CEWE EBIT ranges from 0 euros (no increase) to not more than a high single-digit million euro amount. EBIT target corridor for 2016: + six million euros The 2016 Group turnover is to rise slightly on average from 554.2 million euros in the previous year of 2015 to an amount ranging from 555 million to 575 million euros with the Value Added Tax on photo books unchanged. In this case 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. After 77.8 million euros in 2015 (+ 10.4 %), the management believes that commercial online printing can achieve turnover of around 86 million euros in 2016. At the same time CEWE is confirming its target of generating a positive contribution to earnings in 2016 with online printing. With the situation concerning Value Added Tax on photo books remaining unchanged in 2016, 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. Earnings by business segment:

CEWE:                          Unit        Q4 2014 Q4 2015 2014    2015
(1) Photofinishing
Digital prints                 in m. units 745.6   761.2   2,203.9 2,164.1
Prints from films              in m. units 17.8    14.5    88.6    70.7
Total prints                   in m. units 763.4   775.7   2,292.5 2,234.8
CEWE PHOTO BOOK                th. books   2,255.7 2,385.1 5,928.7 6,047.9
Turnover                       in EUR m.   156.0   175.3   386.0   414.9
EBIT                           in EUR m.   39.4    39.3    39.4    40.4
EBIT margin                    %           25.4    22.4    10.2    9.7
(2) Retailing
Turnover                       in EUR m.   18.3    17.3    67.3    60.8
EBIT                           in EUR m.   -1.5    0.9     -2.9    -0.4
EBIT margin                    %           -8.0    5.2     -4.4    -0.7
(3) Commercial online printing
Turnover                       in EUR m.   20.5    22.8    70.5    77.8
EBIT                           in EUR m.   -0.3    1.6     -2.9    -0.9
EBIT margin                    %           -1.3    7.0     -4.1    -1.2
CEWE Group                     Unit        Q4 2014 Q4 2015 2014    2015
Turnover                       in EUR m.   194.8   215.8   523.8   554.2
EBIT                           in EUR m.   37.3    41.0    32.6    36.8
EBIT margin                    %           19.2    19.0    6.2     6.6
EBT                            in EUR m.   37.2    41.1    31.5    36.3

Notes to the "Earnings by Business Segment" chart (1) Photofinishing: Production and sale of photo products such as the CEWE PHOTO BOOK, CEWE CARDS, CEWE CALENDARS, CEWE WALL PICTURES and individual (analogue and digital) photos as well as other photo products (2) Retailing: Trading in photo hardware, such as cameras or lenses in Norway, Sweden, Poland, the Czech Republic and Slovakia. (3) Commercial online printing: Production and sale of commercial print products in the online printing portals, e.g. CEWE-PRINT.de, saxoprint.de and viaprinto.de Overall year of 2015 in a comparison with the previous year and with targets, and the targets for 2016

CEWE Group           Unit          2014      2015       2015      2016
                                             target     actual    target
Digital prints       in billion    2.2       2.10 -     2.16      2.05 -
                     units                   2.15                 2.15
Prints from films    in billion    0.09      0.065 -    0.07      0.050 -
                     units                   0.070                0.055
Total prints         in billion    2.29      2.17 -     2.23      2.10 -
                     units                   2.22                 2.21
CEWE PHOTO BOOK      in m. units   5.9       6.0 - 6.1  6.0       6.10 -
                                                                  6.15
Turnover             in EUR m.     523.8     515 - 535  554.2     555 - 575
EBIT                 in EUR m.     32.6      32 - 38    36.8      38 - 44
EBIT margin          %             6.2       -          6.6       -
EBT                  in EUR m.     31.5      30 - 36    36.3      37 - 43
Earnings after tax   in EUR m.     21.4      20 - 24    22.7      25 - 29
Earnings per share   EUR/share     3.07      2.87 -     3.24      3.53 -
undiluted                                    3.45                 4.10

Fourth quarter in 2015

CEWE Group           Unit          Q4 2014   Q4 2015   Diff. %   Diff. abs.
Digital prints       in m. units   745.6     761.2     2.1       15.6
Prints from films    in m. units   17.8      14.5      -18.5     -3.3
Total prints         in m. units   763.4     775.7     1.6       12.3
CEWE PHOTO BOOK      in m. units   2.3       2.4       5.7       0.1
Turnover             in EUR m.     194.8     215.8     10.8      21.0
EBIT                 in EUR m.     37.3      41.0      9.9       3.7
EBT                  in EUR m.     37.2      41.1      10.5      3.9
Earnings after tax   in EUR m.     25.9      26.1      1.0       0.2

Percentage deviations have all been calculated at the exact values. Should you have any queries, please contact: CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations) Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: [email protected] Internet: cewe.de , cewe-fotobuch.de , cewe-photobook.com , cewe-print.de , viaprinto.de , saxoprint.de, deindesign.de The CEWE apps are all available in the app stores: CEWE PHOTO WORLD, CEWE POSTCARD, CEWE SERVICE and other photo apps, and the CEWE Investor Relations app for iPad(c) or android tablets, with annual reports and quarterly reports, presentations and sustainability reports. Financial schedule: 14 April 2016 Bankhaus Lampe Deutschland Conference, Baden-Baden 12 May 2016 Publication of the interim report as at Q1 2016 1 June 2016 2016 Annual General Meeting, Weser-Ems-Halle, Oldenburg 11 August 2016 Publication of the mid-year report interim report as at Q2 2016 19-21 September 2016 Berenberg & Goldman Sachs German Corporate Conference 20-22 September 2016 Baader Investment Conference, Munich 10 November 2016 Publication of the interim report as at Q3 2016 21-22 November 2016 German Equity Forum, Frankfurt About CEWE: The innovative photo and online print service company CEWE, with twelve highly-technical production operations and a staff of around 3,400 employees in 24 European countries, is both market and technological leader. In 2015 CEWE delivered around 2.2 billion prints, 6.0 million copies of the CEWE PHOTO BOOK and photo gift articles to around 25,000 retail partners to generate consolidated turnover of 554.2 million euros. CEWE is continuously generating new impulses in the photographic industry with innovations for people who enjoy taking photos. In the new business segment of commercial online printing, printed material for businesses is marketed through the sales platforms CEWE-PRINT.de, Saxoprint und Viaprinto. Founded in 1961 by Senator h. c. Heinz Neumüller, CEWE was taken to the stock exchange by Hubert Rothärmel in 1993. CEWE Stiftung & Co. KGaA is listed on the SDAX. --------------------------------------------------------------------------- 23.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: CEWE Stiftung & Co. KGaA Meerweg 30-32 26133 Oldenburg Germany Phone: +49 (0)441 40 4-1 Fax: +49 (0)441 40 4-42 1 E-mail: [email protected] Internet: www.cewe.de ISIN: DE0005403901 WKN: 540390 Indices: SDAX Listed: Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 447999 23.03.2016