CEWE Stiftung & Co. KGaA ($CWC)

Welcome to the earnings call of CEWE Group following the publication of the annual press and analyst conference. I would like to welcome the CEO, Thomas Mehls; and CFO, Sirka Hintze, who will guide you through the presentation and the figures shortly, followed by a Q&A session via chat. Having said this, Mr. Mehls, the stage is yours.

Thank you very, very much, Ms. Banner, and a very warm welcome from us here from the somewhat cold and sunny Oldenburg. So it's not yet spring time, I believe. It's a little bit April's weather, right? So Yes. So a very warm welcome to all of you. This is our annual press and analyst conference in a bit of an unusual setting. For the first time, we do this fully virtual. This allows more people to participate. And well, as usual, we will look back at the figures of 2025, which we just published, but we will also give you a little bit more of behind-the-scenes information. So a little bit like what did we do to achieve these results. So stay with us. And at the end, as I said, you will have the chance to ask questions via the chat. Also in German, we will have a moderator who will translate and transcribe that into the English language. So let's start.

Welcome also from me. Good morning.

Let's start. Yes, a warm welcome again. As I said, I don't want to go through all the agenda here, the results, a little bit of the development. We will do an outlook as well, right, and then a Q&A session. So how did we do in the past year? Well, I would say quite strongly. Our turnover and our EBIT increased. We achieved all the targets. The group turnover of CEWE increased by 3.8% or by EUR 31.7 million to EUR 864.5 million. And this actually is at the very upper end of our own expected target range. So we are very much not only within our range, but at the very upper end there. The group EBIT also increased by EUR 2.1 million or 2.4%. This is also very well within our target range. So all our targets have been clearly met. However, we can see that with the EBIT development, we are not at the upper end of our own target range. We know that. We can comment a little bit on that one. If we had achieved our targets in the Commercial Online Print segment, we missed them by about EUR 3 million in EBIT. then we would have been at the upper end for the overall results as well. So overall, quite a strong year for the CEWE Group in total. I don't want to read all of this to you. So -- but there are a couple of comments I would like to make here. So you know that we lay out our targets also by product, by a couple of volume indicators and also the financial targets. Something which makes us really proud is that we increased our volumes, and you can see that here in the photos. The photos is not product only by itself. Of course, we do sell printed photos, but it is also something which is within our product. So the CEWE PHOTOBOOK, for example, does also contain photo. So we over exceeded our own targets. We over exceeded our targets in the volumes by the CEWE PHOTOBOOK, and this is really a strong development. So our growth in photofinishing was driven by volume, and this is something which we really want to acknowledge here and on all the other figures, we will comment a little bit later. right. So -- as all of you know, we have 3 key business segments. We have the commercial online print. We did EUR 89.6 million of turnover there. The most sizable business, obviously, is the photofinishing, and you can see that here. And we will comment a little bit on also the fact that we are in this segment active with 5 brands. You see them here, our CV brand, the home turf, so to speak, WhiteWall Pixel, Dine Design and Piers. And this is the core of what we are doing. And obviously, the majority of this call will be around photofinishing. We also have retail, if you like, our most traditional segment, actually where the company comes from. We still operate around 100 retail stores in Scandinavia and Central and Eastern Europe and actually one in Holenburg, by the way. This segment is really nonstrategic. -- in itself, but it is strategic in the role of supporting the photofinishing business. And you can see that here, the brands are clearly moving towards the CEWE brand. And if you walk into these stores, you will see a lot of CEWE. And actually, we will have a couple of pictures of one of the stores, and it really looks like a CEWE store. So overall, and I think this is really important, this company is on a good track. It's on a good growth track, but it's also strategically on a good track. We are continuing our growth in digital photofinishing. You can see that here. And well, you can see it has been a record year in turnover. It has been a record year as well in EBIT, but it has been a record year, and our transformation path of this company clearly continues and did continue -- well, it does continue in 2026. We'll come to that in a little bit, but it did continue also in the year 2025. And the same is true for EBIT. So it is also a record year in EBIT, as I said, well within our target range. So quite nicely. We had been -- we would have been at the upper end, as said, if we had been delivered also in the commercial online printing area. So -- and as announced, yes, we will now focus on the photofinishing business on what drives us there, but we will give you a lot of insights about the last year and what -- how did we do that? How did we achieve these results? And actually, what did the teams do because it's not only the 2 of us or us on the Board. We have a lot of team members who work every day very hard to make that happen. So our strategic principles have not changed. And to be quite honest, they will not change. We are a customer-focused company. And this is very important. I mean all the -- probably every company will say that. But for us, it's crucial because we cannot sell a single product without the involvement of our customers because they have to bring their personal memories. They have to bring their photos. And also with their -- only with their personal memories, we can create and actually then print maybe a CEWE PHOTOBOOK or a Mug or a canvas and deliver it to them. So their involvement is crucial, and it's really at the core of what we're doing. So we do need to focus on what our consumers bring with them to create really meaningful products out of their memories. So innovation brands efficiency -- sorry, if we can go back, innovation brands, efficiency and sustainability. These are 4 topics you will learn a little bit -- well, maybe not learning because you know us quite well, but we want to reiterate a little bit on that one. Everything is bound together by one team, which is driven by one cultural mindset. And we will go through some of these aspects now. As said, customer focus, that's something which drove us, and we want to make customers happy. And we are in a very special business. And you look at this picture, you would say, well, these are people which just smile, but we are in a smiling business, right? I mean if you walk into the photo lab downstairs here, you see a lot of pictures and hunt the pictures, people smile. So if you look maybe on your camera, mostly you see smiling people. And if you convert these pictures into a CEWE PHOTOBOOK, we'll see even more smiling people because you will delete all the pictures where you don't smile. So we are really in a happy business, and that drives us every day to make our consumers happy. We have one big success story. That's really important. We have a very important brand and a very important product in our portfolio. This is the CEWE PHOTOBOOK. And we are so proud that in the past fourth quarter, actually, we did deliver the 100 million difficult to pronounce the 100 million CEWE PHOTOBOOK to one of our consumers. We are going to celebrate that. We're going to announce that in Q4, we actually focused on Q4, not on the celebration. But we are very proud that in the past actually 20 years, we delivered 100 million CEWE PHOTOBOOK. And actually, we delivered a lot of smiles, a lot of proudness, a lot of sharing. I mean we really create memories throughout whole Europe because this product, this brand is the most successful CEWE PHOTOBOOK brand in whole Europe, and we are very proud about this one. So 100 million is really a success story. But we can only do that if we really make our customers happy, and we measure customer satisfaction by the Net Promoter Score, by the NPS. You're used to that. And also, we are very proud and probably we would have not been able to deliver that volume growth, which we did deliver. We are very proud that we did increase our Net Promoter Score again on a very, very, very high level to 66.7%. I don't want to go into the details of how this Net Promoter Score it's nothing we invented actually. It's a metric a lot of companies use. We are very happy that our consumers are happy. And this happening is not only product quality, of course, but it's also their satisfaction with our ordering channels. So how easy is the software, the app or the website, for example, how fluent is that. It has also a lot to do with how well do we deliver in the fourth quarter because you know to have our products underneath the Christmas tree on time is really crucial. And the past year was really exceptional in that one. So consumers are happy with the product quality. Consumers are happy with our ordering trends, but they were also very, very happy with our delivery confidence, which we gave to them. So I would say most products out of millions and millions, probably was just a couple of hundred, which did not make it any time underneath the Christmas tree. And this is also reflected in this number. So -- what drives us is innovation. Yes, we did deliver the 100 million CEWE PHOTOBOOK and it was like, okay, where is the innovation in that? Is it has been the same product? No, it's not the same product. It's like -- if you look at toothpaste, it's not the same toothpaste, which is sold now compared to 20 years ago. There's a lot of innovation in there. If you compare the story of the CEWE PHOTOBOOK throughout the last 20 years, there's a huge difference in the way these CEWE PHOTOBOOK are created now, ordering channels. It's a huge difference in the product variety. So the width and the depth of our product portfolio has changed greatly, and there's a lot of innovation in there. And this innovation can only be done if a lot of people, and you see here a picture of the innovation days of the year 2025, and we will show you also a video of this year's innovation days in a couple of seconds. This can only be delivered a lot of people from a lot of sites stick their head together and think about how to innovate products, how to innovate ordering channels, how to innovate this company. And this really drives us forward. So we will give you a little bit of a feeling what made us proud in terms of innovation in the past year. The momentum pocket and photographic paper signal, this is really something where we all said, okay, that's nice. Some consumers say, it would be nice if I had a pocket in my CEWE PHOTOBOK to just include, I don't know, boarding passes or entry tickets or something like this. We said, okay, why not do that for a little extra on there. And we were really surprised by the success of that because it seems to be simple, but it just shows how important it is for the people to collect their memories. Photos are important, but there's more, especially when you travel, there is more in your memories and you have, I don't know, maybe a menu cardo or whatever it might be, which you store with the CEWE PHOTOBOOK. So small product, big impact. We were quite happy by that one. Design is important. So premium is not only a qualification like you would say, okay, is that a nice design or not? It's not a qualification. But there is a business model behind it. We really moved all of our design portfolio into a freemium model, so you can order free designs, which enhance conversion. So a good design helps you to really, at the end of the day, finish your product. But we also have premium designs for which we charge, and this also helps the bottom line. So we are quite proud that we enlarged this portfolio to many of our products also to the cars. Sustainability is very important. This is the kitchen calendar with detachable photos, so you don't throw the calendar away with the photos. Some people even cut their photos of the calendar, I was told. So we did invent a method of how to keep your photos by having them detached. Also the calendar, it is very important for Q4, the XXL personalized wall, it looks quite small here. It's huge. It's really huge. It replaces a canvas or a large wall art on your wall. It's almost a one format. So it's a really huge calendar, very nice, especially for, let's say, ambitious ambitious, right, ambitious photographers. So designs, I told you is important, is important to drive conversion is important to drive also the bottom line, but you do need the right products for that, right? You're the avocado to my toast, that's the design. This looks a lot better. If you have a colorful inside color, interior color in your mark, for example, it just makes the product better. So we have a couple of limited editions launched quite successfully. They were all sold out, by the way, so quite nicely. And pets. I mean, it's a photo treater. Some people put cookies in there for themselves. Some people put cookies for their pets in there. Pets in itself was a nice driver. So we did focus a bit more on the pets business. So we have landing pages for people -- pets for some people are the replacement of the children, right? So they also like to have the photos of their pets, maybe on a blanket, on a peow. So we saw all kinds of pets on the different photo products, and we want to support that. And again -- and I told you that story. Again, this is just one example of the -- one of the designs we introduced. Design is an important topic because you can say this is a poster No, this is not a poster. This is a product, right? If you have an anniversary collage, this is a real product. So our designs help us to create at the end of the day, to create real products. We say sometimes the design is a product in itself. And you will find a couple of these products. Photo retreat, map poster is a good example, which is at the end, physically just a poster, but design-wise, it is actually a new product, which we created. And we have a couple of these. So designs really drive our business. You know that our target group, especially for the CV brand, and I will come a little bit to the target group and to the difference of the brands in a minute. They like to be very creative. So yes, we help them to unlock their creativity with our photo products, but the creativity doesn't stop only with the photo products, of course. So some people say, okay, it's nice that I can order an advent calendar with you guys, which has chocolate in and I just put my picture on there. Others say, yes, pictures are very important for my advent calendar, but I want to fill this advent calendar myself. I want to buy some perfume, some sweets, some whatever treats by myself. I want to do a little bit by myself. So we created this photo advent calendar boxes, actually quite successful, was quite nice. So it actually addresses the target group of people who really want to put more creativity into their advent calendar. And well, digital greeting cards. Greeting cards is a changing business. It's not our most important product category, but probably if you look yourself onto your shelf at Christmas, how many Christmas cards you receive in business, maybe how many Christmas cards you received as a private person. I hear how many Christmas cards you actually wrote as a private person. So this business is changing. It's not only because in the Christmas card business, it's also an invitation. So we created digital greeting cards. So you would say, why that, you can just send something via WhatsApp. Yes. But the point is you actually want to design a nice card. If you want to send out Christmas greetings, if you want to invite this example for your 60th birthday, if you want to invite somebody to your 60th birthday. And what we found quite successfully as a last-minute Christmas card. That was quite surprising to us. So it wasn't something which was really felt in our business in the running up of Christmas, like the calendar business or the CEWE PHOTOBOOK business. But on the 23rd and even the 24th of December, people used a lot of these -- not this one because it's an invitation, but the Christmas card designed to send out a digital Christmas card. So quite interesting how the landscape, I would say, is changing. And I think it's good that we are all convinced that we do great stuff. It's always good, right, if you're convinced yourself. But actually, we do have some external people who also believe that we do great stuff. And you know the TIPA awards from the past conferences we did here. It's a jury of journalists, expert journalists. It's international that's very important to us. So it's actually worldwide. So -- and they look at the innovation in the photo industry as a whole. They also look at cameras and lenses and so on, but they also look at the photo printing as they call it, industry. And they awarded many TIPA awards last year to us. So for the panoramic page, again, it's if we do it this... Yes, it's exactly. We do it like this, right? It's really big -- it's an impressive product they thought themselves and it's actually not only impressive in physical terms, but also how easily it can be created, how flexible it is. It's not in a specific point in your CEWE PHOTOBOOK you can put it wherever you want to put it and so on and so on. It's actually a patent. It's actually pat. So they were also quite happy with our CEWE Passport app, which creates a biometric photo. And don't be fool, yes, the German market in terms of passport photos has changed. We were aware of that because you actually need to have a certified, I don't know, walk into the mayor's building to have your pictures taken, but this is different in a lot of other European countries and also people still need pictures for their, I don't know, public transport card and so on, and this app helps you so quite nicely. We did reinvent the calendar, by the way. We did reinvent the calendar. This is the fine line wall calendar, and you see that there's no spiral binding here. You don't turn the pages, you actually take it off and have a very neat design-oriented hanging and changing the system. And this was very well received by the Tepper jury. You see that here. It was a red Don winner. And just very recently, actually, I know we talk about 2025 here, but we spoiled it for '26. So it did also receive the IF Design Award, quite outstanding, we believe, because usually, that's not the award photo products are awarded with. So it shows that we also have an impact by designing great products. And well, ordering channels are important. As are important. There's a CVE Smart layout concept, which is not only in the mobile app, but also in the desktop app. You will see that in the video also in a minute. And apps are not only in the CEWE branded world, they are also in the Pixel world, and this is why Pixon also has been awarded a Tea award for their app actually as the best PHOTOBOOK app. and would show you a video also of Pexom showing how they address as a brand, their target in a minute, actually. And white wall, best photo frame looks nice. Also, we have that in Oak. I ordered it in Oak, very nice. I can just recommend it to you. So we are exceptionally proud, I would say, not only about that we did receive all these TPA awards, but then those winners of these awards, so also from other industry players, I told you this is a journalist jury, which does these TPA awards. They have websites, they have blocks, they have magazines. They put out these awards and let professional photographers vote for their favorite products. And guess what? We won also the photographers Choice Awards. So again, it's not only that we convince the jury, but we also convinced the photographers that we did great. And the CEWE PHOTOBOOK panorama Page was very well received by those photographers. We're quite proud actually. And this brings us to the question of will that go on? Well, I don't know, I have to tell you because we are in the phase of defining the road map and laying out all the product ideas. But we want to create the environment in which all of our employees can really give an innovative input to the company. So this is why we do the innovation days. Every year, we do that in Aldenburg. Well, that's our home turf. And this year, we had about 1,300 people here in all work. This is quite a stun. It's about 1/3 of our workforce, which came to look at ideas, present ideas themselves, exchange on ideas and the video will give you a little bit of just a feeling on what we do and how people collaborate, I think. [Presentation]

So yes, the quality of the video. It's actually a good video. It's just the Zoom platform, which doesn't transmit that very well. So sorry for that one. So the idea is really to give you a little bit sense of the spirit we all had. It was your first time, right, and you enjoyed it as well.

Yes, it was really great.

Yes. So good spirit. And the important thing is that everybody and bring some things, can bring an idea, exhibit it there and go into discussion with all the others from the company, receive feedback, develop the idea further. And then hopefully, at some point in time, it will be -- will become a product. And this is actually the way the Panoramic page was invented for the CEWE PHOTOBOOK just as one of the many examples. So brands is also important. We are one of the very few -- one of the very few, if not the only one, but we can debate that in a little bit, photofinishing companies, which is operating with different brands. And we do that on purpose. We believe there are different target groups out there, which need to be addressed differently. And we want to give you a little bit of a feeling of what we do with different brands and how we address our target group and what were some actions which were brand driven. And of course, we start with CEWE. You saw a lot about CEWE already. So I want to start with the CEWE photo contest, and we are very proud that we were able to deliver, again, the CEWE Photo Award, which has been the greatest, largest photo competition in the world. We are very proud about this one. I mean, again, it's not us who delivers the content, we deliver the platform. It's the photographers. And this is the praying mantis here in a dancing, so-called dancing. It's actually defensive move in a dancing move, the winning picture. And this is just one of many pictures. We did get 656,000 pictures, I believe, yes, 656,000 pictures, which were uploaded to our platform by far. It's really by far the largest photo competition we did with very nice results. And we got them from all over the world. This is a picture from Indonesia, for example, and 153 countries. So a lot more countries which handed in their photos than we are active in, quite proud. This is one of my favorite winner photos, I have to tell you because it's from a football a little bit of a football fan, just a little bit. This is actually a French supporter looking at -- well, I would say, probably a mischance. This is my interpretation. I don't know really, a mischance of the French national team against Argentina and the World Cup of a couple of years ago. So CEWE Photobook is one thing, addressing photographers. You know that our behavior on how we consume media is changing a lot. We are on very different social media channels, maybe Insta or Facebook or Pinterest and so on. Also, we ask constantly ourselves the question of how to present our brand, our products on these channels. And TikTok, well, it is a different channel. So we need to be there in a different way, but still addressing our target group, still addressing our need. And this is just one of the examples of how the CEWE brand does that on the TikTok channel. [Foreign Language]. Yes. So this is -- sorry for the German video. We actually selected the videos mostly from Germany because we know most of you are actually from Germany. If you are not, you can look at your local TikTok channels and find similar videos on there. But again, we have different brands addressing different needs. So we will show you here a big screen as we call it. So it's for the bigger screens, may be YouTube, maybe TV, may be CTV, like Netflix or whatever advertising. So on the big screen, something from Pix, which clearly addresses a different need. [Presentation]

So quick, so simple. So it really addresses the mobile target group. It clearly goes on the app. So very important. It's an important ordering channel for us, the app. Most of our consumers actually also visit our websites via their smartphone. It's only the pictures taken by the smartphone. It's also visiting our channels via the smartphone. And this is why we have apps. We have apps at CE as well. But Pixel and their communication focus totally on the app. So a very different need, very different target group. And just the last example we could show you a lot more is a video from WhiteWall and the target group from WhiteWall is very different. This is probably -- not probably, this is why this video also is very different again. [Presentation]

It was too early, right? There were still some music playing there. So excuse us again for the video quality, again, it's driven by the Zoom platform here. Usually, the video quality is as good as our photo quality at WhiteWall. They're addressing clearly a different target group. They are addressing rather professional, very enthusiastic photographers. You've seen a couple of them they are cooperating with the so-called white wall ambassadors, and that's what also they address in their brand activity. So it should just give you not only a sense of what we do, but also why we have different brands. That's important. There's a clear strategic vision behind it that there are different target groups out there in the photofinishing segment, which need to be addressed by different brands. So coming to something totally different, but still clearly very, very, very important to us. And I say that in -- I would say, in an environment where people have the feeling and we got actually the question on the Innovation Days to the Board, well, is sustainability still important to us when everywhere else, people talk about not being important anymore, cutting climate goals and so on and so on. So we always said sustainability is at the heart and within the DNA of what we're doing way before Fridays for future. And also, we believe in that also in these maybe difficult times where people do actually a sustainability bashing. We do not. We actually work towards that goal. And I want to give you a glimpse. It's a little bit more a technical slide here. of our CO2 footprint and what's there. We are really proud. We are really proud. We were one of the few companies, the first actually in 2017, which set climate goals, SBTi science-based target initiative climate goals, CO2 goals based on the year 2015. And in our Scope 1 and 2 area, and this is basically the direct emissions and the indirect emissions by purchased energy, we overfulfilled those goals. We are very proud. I mean we're talking about the year 2015, a clear reduction. We did a lot of initiatives. You will see most of our buildings now with photovoltaic energy, green electricity. You will see us driving electrical cars, right,. We are replacing gas heatings. We do a lot of initiatives to bring that down quite successfully. So all the targets met. We have to be honest, we did not meet all the targets in the Scope 3. This is the so-called indirect emissions outside of CEWE in our value chain. So this is, for example, the material we buy, the paper we are buying, for example, the wood we are buying, the logistics, like the DHL courier we are using, for example. This is largely dependent on third parties. And we did not fulfill our own targets. We are not alone in this world. And there are 2 main reasons for this. We can discuss about this, but 2 main reasons. Number one, our setup in the year 2025 is totally different than in the year 2015. We did acquire WhiteWall. We did acquire Cheers and so on. We would have needed to actually recalculate our base here. Technically, we did not do that because actually, it's more important to work on the things than just to calculate. And this is one reason why we didn't achieve that. The second is we overestimated actually the impact of how suppliers would work in their own production like our paper suppliers worked in their own production in reducing CO2 emissions. it did not work out that well. We are working with the suppliers very, very hardly to reduce CO2 emissions. This is, for example, why we have the Supplier Sustainability Award to award those suppliers who do really great things. We ourselves make sure that we buy the right material. FSC is one of the things we use a lot of paper in our production. So we make sure that we use certified paper, very important is one of the things. And we have the clear goal of reducing our CO2 emissions further. We have the goal to work further and further on the sustainability in general. CO2 is just one of the little aspects with many sustainability aspects we are working on, and this is despite all of the talks which are going around us. So -- coming to efficiency, very important. I will address that in the foot finishing in the summary in a little bit as well. You know that we have a production site scale is an important topic for us. So expansion of production capacity has to do with volume growth. Volume growth needs to be needs to be worked on in our production site, so we need more space. But it has also a lot to do with scaling, so bringing together volumes in production site in order to be able to automate even more. So this drives a lot of the efficiency, and this is something we clearly have as a target, and I will come back to that in a minute. We are also very happy, again, coming to an external acknowledgment here that we were recognized by Deloitte, UBS FS and BDI as one of the Germany's best managed companies, and they clearly addressed our thrive for efficiency as well. So very proud to get the stamp -- this actually very renowned award here as one of the best managed companies. which brings us to the team because everything which I told you about right now is only possible with a great team, and this is a picture actually from the Innovation Day. I don't know if this is all the 1,000 people, but you see it's a lot of people. We have a great team. We have about 4,000 employees. They work really hard every single day. And sometimes night if we talk about the Q4, you know that we work in 3 shifts there. They really work hard to make our consumers happy. And so I can talk a lot now about what they are doing. But actually, we let them talk because we put together a video of -- and asking them, what are you exceptionally proud of in the past year and they handed in those seats. [Presentation]

So great team, great spirit, and we are extremely proud of them as well and take this opportunity also to thank the whole CEWE team for what they delivered in the past year. So -- and this brings me to my final slide in this section. I just want to give you kind of a strategic wrap-up of how we see it in the photofinishing industry. We are convinced that we are extremely, extremely well positioned in this photofinishing industry. You see the brands we're active with in this industry. We are driven, and this is something I really wanted to bring across in this session today. We are driven by consumers, by customer satisfaction, retention or loyalty, however you want to say that. It is only possible by continuous innovation. We don't stand still never as a company. We don't stand still in terms of product innovation. We don't stand still in terms of ordering channel innovation. We don't stand still in innovation in our factories, very important. If we look back, the photofinishing market is not very transparent. We have a couple of figures. All of the figures we have, all of them show that we did have market share gains in the past year. All the figures we did not have, but we have a good market feeling indicate the same. So this company drove market share up. This is very important. And this -- and why? Because we have great brand positions there. We also deliver -- we're also able to deliver steady organic growth, which is largely, not totally, but largely independent from economic development. So as long as people travel, this is one big driver. And as long as Christmas does exist, this business will be healthy, very clearly. So we have a focus on efficiency and production and administration. However, we are not yet there. I think this is something we also need to address here. We are not leveraging the group size enough. You know how important it is to have different brands. You know how important it is to be active in different countries. But do we leverage the group size enough? We saw our EBIT increase less than our turnover. So we clearly have, as one of our targets, the goal to scale better, still retain our brand positioning, still retaining our local touch and feel to the markets, but we are working clearly on programs of how to scale this company better because this is something where we want to improve and need to improve. We have a good financial strength. Sirka will tell you in a minute more about this one. We have a good financial strength. It enables us for additional growth in an inorganic way. So we are looking actively for acquisitions. I mean, today is not the day where we are able to send out any ad hoc messages, but be assured that we're working on them, but we select the targets we want to very carefully. We negotiate very carefully. We have them all still on the table. And as I used to say, well, we have deep pockets, good financial strength, but we have short hands. So whatever we do, we do very carefully, but we have clearly opportunities in front of us, and we will use them. So this, Sirka, brings me to the hard figures, right?

Yes. And I guess I will have a hard job to do here because myself, I can say I'm still touched from the videos. So I don't know how much are you still interested in listening to my dry numbers here. So -- but anyway, looking into the business segment, photofinishing, which is our most important segment, at least 86% of our turnover is fed by the photofinishing business. So the turnover over '25 grew by 4.4%. So Thomas mentioned already a little bit so by what type of products, so what made our photofinishing so successful. I guess the most important story about the turnover is here really that we are proud of volume growth instead of just increasing the prices. So it's obviously -- and this is here really across all the products, the case, while the revenue per photo rose by 0.3%. Looking into the EBIT, also Thomas mentioned already a little bit, which is true for the entire group that our EBIT is not so fast growing than our turnover. So -- and this is mainly driven by higher personnel costs, in fact, EUR 12.5 million additional personnel costs. And this is a mixture of wage increases, new hires, but also onetime effects because in '25, we had board changes. And so for the top line, we need also to spend a little bit more on our marketing budget and EUR 7.6 million more marketing costs helped also us for supporting the top line. With the third impact of our EBIT, we also have to notice that the IT costs are rising. I guess we are not the only one in the market who is suffering a bit from the entire development and also the strength of our IT partners. So our IT license fees rose only for the photofinishing business by EUR 1.7 million. So we can conclude that photofinishing continues to grow both top line and bottom line as well. And for the top line, we are happy for the volume growth. Analyzing the seasonality effect across all the quarters show us how important the last quarter is. I mean, if you look into the numbers turnover-wise, you can really see that we double up the turnover from the quarters in our last quarter, and that has something to do with Christmas, which is for sure and reserved and blocked for our customer base, obviously. So -- but also we could see a continuously growth over all the quarters, which is also a very good sign for us. So the targets were all the time exceeded and which is not only a good motivation for our team, but also it helps us with the numbers. Looking into the EBIT, of course, you can see here, again, a massive seasonality effect. These graphs show you that we make our money only in the last quarter of the year. And -- but all -- throughout all the quarters, we were within the expected targets, which is also something where we are happy about. Let's change a bit the perspective and looking into the number of prints and the turnover of the photofinishing. You can see here the number of total prints is exceeded -- it was exceeding our targets of 2%. So we have an increase of 4.1% -- and then if you multiply the turnover per photo, which is also increasing, that makes our turnover of the photofinishing so -- and is increasing, of course, our revenue in total. So very, very proud and very good to see. And if we move now to our core product, Thomas mentioned it, and also maybe you have seen it in the video and you get a bit of flavor again, 3.5% increase. It's the plus of our core product and only in the last quarter with an increase of 1.6%. And this is following the trend and also a success of our constant innovation and the power of our teams. You have seen the beautiful layouts, the premiumization. So all our customers, especially the creational ones, really like the nice designs and materials. And so yes, good story, I would say. And -- but let's switch to our other business segment, the commercial online printing business. And we combine here Via Printo, [ ZAXOPRIN and LASERLINE ] and focusing on business advertising prints, flyer cards, stationary packaging, promotional items, merchandising, business cards, et cetera. And if you look here into the numbers, we must say, if you only see the dry numbers here, you would say, okay, what's going on there? What we must admit that -- and if you observe the market, there's an unchanged and ongoing trend of digitization for our commercial online printing clients and the entire market is undergoing significant reductions. And that's why we can be satisfied with the only reduction of turnover by 0.4%. So obviously, our best price guarantee strategy is helping and supporting that still we are gaining market share. And EBIT-wise, we cut obviously our results into half compared to last year, but we are still earning money with the business. And so the -- the EBIT was mainly reduced due to the competitive pricing level in the market, but also due to our investments into the international business. So we grew out a bit more to Netherlands, Belgium, France, Spain and also U.K. And we also spent some money into our efficiency-enhancing ideas, the terms here hybrid production. And what does it mean? It means the combination of offset and digital printing. It's really impressive if you would be on site in our production. Also when I go to our shops in South and Central Eastern Europe, but also to Scandinavia, it's really nice to see, walk through the CV stores. And so we have more than 100 retail stores. And this segment is also about the e-commerce web shops where we sell hardware. And so there's a point of sale where we get really physically also in touch with our customers. And if you look into these numbers, and honestly, we didn't expect this good development after years of stagnation, we can see increase of turnover. And even everything is still on a low level, but it's going into the right direction. We have a plus of 2% in turnover, and we are even more proud also on the EBIT development, which shows us a very positive result development. So great development, a bit surprised. I was really also surprised how much interest a lot of our customers have also in these products like frames and also all the products we sell around and the P. less exciting for the completeness, we also have to talk about the remaining segment others. And this is mainly about the structural and corporate costs. And so we are generating also our EBIT out of renting out properties. And this year, the income was a bit higher so that we have an improved EBIT, but it's not our core business. So moving to our financials. And -- if we look into our balance sheet, and this is a snapshot. I will come back to that snapshot information message once more later. You can see here that we have following the trend growing our asset base. And so this is in '25, not only driven by some effects, what happens over the year-end over the date 31st of December. It is also because we build it up our inventory. So we bought for or restored for more than EUR 4 million photo paper for our photofinishing business, but also for the commercial online printing business we prepared and for supporting also the prints for the elections we have across Germany. So the total asset base increased also because of our buildup in the properties, the renovations we had. And so the asset base increased by EUR 23.7 million. And if we look into the equity ratio, it's following, again, the increased path. So this is what Thomas when he's talking about full pockets. So we have a massive financial power also to invest with such an equity ratio of now 61%, 61.2% exactly. And of course, the equity is reflecting also our solid results and corrected by the dividends we also a very healthy balance sheet, but also it's showing a bit we are ready. We are ready for the growth. So let's move to the free cash flow and the operating -- the operative net working capital decreases by EUR 22 million due to the reduction of trade receivables and EUR 3 million higher tax prepayments. And as I mentioned beforehand, also the increase in inventories. So -- and these movements over the year-end plus the investments we had. And so this is mainly into our property plant where we produce, we usually own also the property also to keep our best freedom to build up our production in the way we would like to produce. And so this is, of course, also reflected here in the investing activities. And that leads to a free cash flow as a snapshot of the end of the year by EUR 43.7 million. And for the analysis purposes, we showed a bit also these single effects. So to normalize the cash flow to give you a bit of flavor what the overall relation is. So as I mentioned, the analyzing the one-off effects, so what would we anticipate if you would normalize our cash flow to see and understand a bit more where we are. You can see here the advanced debt collections by retail partners compared to last year, the tax payments, but also the higher inventory buildup year-on-year, but also the earlier repayment of liabilities and the special investments into real estate renovation and construction and corrected also by the subsidiaries we got for our renovation and new build inburg. So that leads to a normalized cash flow here of EUR 70.8 million if we would take out these extraordinary and one-off effects. To show you a bit compared to the last -- or what happens over the last year. So we did the same exercise by taking out these special effects over the last years. And there, you can see we are following the trend, and we are within the corridor. And so this is nothing to be concerned about these days. Return on capital employed 17.6%. It's at the level of '22. And as you know, this is influenced also by segments where we have not such a high profitability as the commercial online print. We can see here the dilution, of course, of the return on capital employed for the group's level, it's 17.6%, which is still strong and where we can be very happy about and where we are satisfied about. So last but not least, dividends. So obviously, I would say, unique story, only very few companies at the stock exchange can tell this. So for the 17th time in the row, we recommend as management Board, the increase of the dividend by EUR 0.15 to EUR 3, and this will propose to the general meeting, which will take place in June. And so the EUR 3 is also a bit anticipating our results situation, but also showing our strong commitment also to the investors. So that leads me to hand over to Thomas.

Thank you very much, Sirka. And I believe the dividend story is really a great, great story, very well received by all of you, by all of our investors. I think we have roughly how to say that, a dividend ratio of 3% compared to our stock price right now, which is also quite attractive, right? So now it's time to take out the crystal ball a little bit and look into the outlook. Why the crystal ball? Well, Sirka has told you how important the fourth quarter is. So everything we do will depend -- will be dependent, of course, of the fourth quarter as usual. So how do we see the year 2026? And let's first maybe look a little bit in the environment around us. So we see inflation has come down a lot, which is nice. Consumer confidence, well, this depends now a little bit also of the global situation probably, but consumer confidence is not really under pressure. We have stable labor market conditions and people travel. This is important. Also, if we look at the travel companies, we follow them quite closely. how are they doing in terms of travel? What is it TUI, for example, doing? Do people travel? And they also confirmed their strong position. They had a strong first quarter. So we are quite confident that we can grow the business again. We lay down range between EUR 870 million and EUR 900 million for the turnover, again, driven obviously by photofinishing here and everything will depend as usually on the fourth quarter. With this expected range we laid down here, we will continue our growth path. We have this long-term growth path, and we are constantly on this growth path. We watch that very closely, and we see it develop very well. And the same is true for our EBIT. We are always a bit cautious there. The EBIT range almost at the lower end being roughly at where we were in last year, but we see also a goal -- we also see a goal of 93% here at the upper range, maybe. Yes, thank you very much. And a little bit more to the details here. Again, in the photos, we were at EUR 2.6 billion photos. We see a growth path here of up to 3%. The same is true for the CEWE PHOTOBOOK. We want to invest a little bit more. This has a lot to do with, let's say, some movements, which -- some investments we didn't do in '25 to '26. And the most important thing is our turnover growth between 1% and 4% and an EBIT between minus 1% and plus 6%. So at the end of the day, the goal is to become more profitable. I think that's the bottom line you should take with here. And this concludes us and concludes this presentation, not the session because as I said, we will have a Q&A session with you. So please feel free to post your question in the chat. We will take them together, transcribe them. If you put them in English, please do so. If you only do that in German, no problem, we will translate them and answer that over the air. If you go home from that session, you should take one thing with you. Everything we do here is to make customers happy. That really drives us. So thank you very much.

Thank you very much, Mr. Mehls and Ms. Hintze for your insightful presentation. Ladies and gentlemen, let me shortly stop the recording at this point.