report on the first three months of fiscal year 2002

REPORT ON THE FIRST THREE MONTHS OF FISCAL YEAR 2002
SALES UP BY 8% DESPITE WEAK TV MARKET
OVERPROPORTIONATELY HIGH EBIT GROWTH OF 10%
TELECOMMUNICATIONS DIVISION TO BE CLOSED
2002 2 Foreword
TECHNOLOGY AND DESIGN. PERFECTION AND INNOVATION.
BY BALANCING THE INTERESTS
Loewe is off to a successful start in fiscal year 2002. The 8% increase in sales in the first quarter,
together with an improved product mix, led to a 10% increase in earnings before interest and taxes
(EBIT). On a comparable basis, earnings per share were up 11% to EUR 0.59.
According to information from GfK, retail sales of televisions in Germany persisted at 8 percent
below the previous year’s level in the first three months of 2002. Contrary to the trend, Loewe was
able to deliver more sets to retailers and increase its market share.
Deliveries to our foreign partners again made a disproportionately high contribution to the Group’s
growth. Accordingly, the foreign share of sales is now 53%.
We also enhanced our international presence and technological lead in the first three months of
2002. The product line marketed in the U.S. through our own sales company since the beginning of
the year is concentrated on high-end large-format sets based on HDTV (high-definition television)
technology that have been developed especially for the North American market. These sets for highresolution television are a very actively growing market segment in the U.S.
Moreover, all 100 Hz televisions have been converted to the new MediaPlus Q 2500 chassis platform.
In addition to simultaneous digital TV and radio reception (DVB) and easy Internet access, these
TV sets with their own sound system – consisting of Certos and Concertos – can now be used as a
combined system as well as form a total system with the Bose Lifestyle 50 sound system.
For Loewe, CeBIT, from March 13 to 20, 2002, was the forum for the introduction of digital TV and
the third generation of Internet-capable television, TV Online plus. The “Living Room of the Future”
included a practical demonstration of the networking of Loewe TV sets and electronic home automation (control of lighting, blinds, mobile Internet access und much more).
3 2002
SYSTEMATICALLY, WE STRIVE TO ATTAIN OUR GOALS
OF SHAREHOLDERS, CUSTOMERS, EMPLOYEES AND THE ENVIRONMENT
In addition, Loewe products received awards for their outstanding design quality at CeBIT. The iF
International Forum Design Hanover conferred awards on the Aconda select and Articos 32 televisions, the Concertos satellite system and the RC 1 remote control. In addition, Loewe was the only
manufacturer to receive the “iF Silver Award” for a sound system, the Certos. Designzentrum Nordrhein-Westfalen in Essen also presented the products Articos, Certos and RC 1 the “red dot award”.
In the coming quarters of the current year, Loewe will selectively increase investments aimed at
meeting the challenges of the market. We will increase the brand experience for our discriminating
customers and make it more widely accessible. We will continue to develop the presentation of the
premium brand among our trading partners and expand our efforts in export marketing.
Moreover, we will strengthen our competence in home cinema and home multimedia to make
access to the huge amount of multimedia content even easier for our customers – whether via television or the Internet. We will offer the first solutions for the intelligent, electronically networked
home, and thus open up a newly developing market.
For all of 2002, we expect a further increase in the key performance indicators in relation to 2001.
One growth pillar will again be the internationalization of the Group, which we will push ahead
with according to plan. For that reason, we are confident that we will achieve our ambitious
medium-range growth targets of 8% in sales, 10% in EBIT and more than 10% in earnings per
share in 2002.
Kronach, May 2002
Dr. Rainer Hecker, Chairman of the Executive Board of Loewe AG
2002 4 Report 1st Quarter 2002
THE LOEWE GROUP AT A GLANCE*)
in EUR million
1st Quarter
1st Quarter
Change
2002
2001
in %
Sales
96.0
89.3
+ 8
Germany
44.6
43.7
+ 2
Foreign
51.4
45.6
+ 13
7.5
6.8
+ 10
4.2
3.8
+ 11
0.59
0.53
+ 11
+ 93
Earnings before interest
and taxes (EBIT)
Net income
after minority interests
Earnings per share
in EUR**)
Further key figures
Cash flow provided by
operating activities
19.1
9.9
Capital expenditure
4.0
5.6
– 29
Depreciation and amortization
4.6
4.8
– 4
Development costs
3.1
2.6
+ 19
1,218
1,124
+ 8
Number of employees
*)
Following the resolution passed in December 2001 concerning the closing of the Telecommunications division, only the figures for the Home Media Systems division to be continued
are reported. The previous year's figures were adjusted accordingly.
The interim financial statements as of March 31, 2002 and the annual financial statements as of
December 31, 2001 are in accordance with IAS and were compiled using the same accounting
and valuation methods.
**)
Net income in relation to the number of shares outstanding totaling 7,149,400 shares
(previous year: 7,075,000 shares).
5 2002
Convincing video technology and surround sound audio: the Spheros S with MediaPlus technology
SALES GROW BY 8% TO EUR 96 MILLION
Under the employee stock option program started
DESPITE DIFFICULT ENVIRONMENT
in 1999, which involved a total of 500,000 stock
options, 425,600 options can still be exercised by
Despite the difficult economic environment, first
2005. Including these options, the fully diluted
quarter sales of the division to be continued were up
earnings per share came to EUR 0.55.
8% over the comparable period of the previous year.
The 8% medium range growth target has thus been
met. Despite unsatisfactory developments in individual
countries, the foreign business grew at a disproportionately high rate of 13%. In Germany, the Company
was able to achieve sales growth of 2% despite the
weak market for TV sets.
DISPROPORTIONATELY HIGH EARNINGS
BUSINESS DEVELOPMENT IN
THE FIRST THREE MONTHS
OF 2002
GROWTH
1. SALES UP PRIMARILY IN EXPORTS
The 10% increase in relation to the comparable
period of the previous year in earnings before interest
Sales
and taxes (EBIT) to EUR 7.5 million in the division to
in EUR million
1st Quarter 1st Quarter
Change
2002
2001
in %
80.2
74.9
+ 7
15.8
14.4
+ 10
96.0
89.3
+ 8
be continued results from the expansion of business
volume and again a slightly improved product mix
Home Media Systems
with continued stable prices. The EBIT margin was up
Televisions and
by 0.2 percentage points to 7.8%.
multimedia
DVDs, video recorders,
As expected, the earnings of the division to be dis-
stereo systems, accessories
continued were in line with planning. The write-downs Total
taken and provisions made in 2001 for discontinuing
the Telecommunications division are also adequate in
view of the shutting down of activities decided in the
meantime.
TELEVISION/MULTIMEDIA PRODUCT AREA
The German market for televisions, which was
As a consequence of the improved EBIT and lower net
already down 3% in 2001, declined by almost 9%
interest expenses, the net income after minority
from the previous year in February/March 2002.
interests of the division to be continued rose by 11%
Due to their high positioning, this negative trend
to EUR 4.2 million. Consolidated net income after
had only a minor effect on Loewe products. As
minority interests was up by 13%. In the first three
a result, Loewe’s market share by value increased
months of 2002, the earnings per share also rose by
1 percentage point to 14.8%.1 No data are available
11% to EUR 0.59 in the division to be continued
for the other European markets.
and in the Group by 13%.
1
Source: GfK, Retail market for televisions in Germany
GfK, Retail markets, February/March 2002
2002 6 Report 1st Quarter 2002
It was possible to increase sales in the television/
large-format set Aconda 102 in the first three
multimedia product area by 7%. The sales growth
months of 2002. The introduction of new TV prod-
was concentrated on the growth segments large-
ucts also resulted in high growth rates in Australia
format sets and 16 : 9 format sets. Following their
as well as in the United Kingdom, where distribution
market launch in the fourth quarter of 2001, the
channels were expanded and Loewe profited from
new large-format sets Articos and Aconda 102 con-
the strong market growth for large-format televisions.
tributed to this growth in the first quarter of 2002.
In the other Western European countries, the
purchasing behavior of the distributors was charac-
DVDS, VIDEO RECORDERS, STEREO SYSTEMS
terized by the uncertain market situation also pre-
AND ACCESSORIES PRODUCT AREAS
valent in those markets. This resulted in noticeable
Sales in these product areas grew by 10%. As ex-
sales declines in some areas compared to the first
pected, sales of video recorders were slow due to
three months of 2001. However, the reduction of
the substitution effects of DVD players. Sales of DVD
order backlogs caused sales in some countries to be
players were also below those of the previous year
exceptionally high in the first quarter of 2001.
since Loewe did not follow a 30% decline in average
prices in the market out of earnings considerations.
Sales in the Telecommunications division to be dis-
The significant sales growth in stereo systems is attrib-
continued were EUR 5.0 million in the first three
utable to the introduction of the new Concertos
months after EUR 4.8 in the comparable prior year
sound system. The technology and design of this
period. They are not included in the sales figures of
subwoofer satellite system developed in
the Home Media Systems division to be continued.
collaboration with Bose are matched to the new
Systems product family. Concertos was launched
together with the Articos TV at the end of the
fourth quarter of 2001. The similarly considerable
sales growth in accessories is primarily due to new
2. EARNINGS CONTINUE TO GROW
AT AN OVERPROPORTIONATELY
HIGH RATE
racks for the Systems line.
EBIT
FOREIGN SHARE OF SALES CLIMBS TO 53%
in EUR million
In line with the Company’s strategic goals, Loewe
continued to expand its foreign sales, posting a 13%
gain in the first three months of 2002. At 53%, the
foreign share of sales surpassed the 50% hurdle.
The newly organized subsidiary in the U.S. made a
significant contribution to this outcome. The noticeable increase in U.S. sales is due both to the low
sales in the first three months of 2001 as well as the
reduction of the order backlog for the newly launched
1st Quarter 1st Quarter
Change
2002
2001
in %
Home Media Systems
7.5
6.8
+ 10
EBIT margin in %
7.8
7.6
7 2002
The Loewe Channel turns online applications into child’s play
The 10% increase in earnings before interest and
Due to the lower commitment of funds in working
taxes to EUR 7.5 million was primarily due to a
capital and lower tax payments, the balance of
higher gross margin, which climbed 1.2 percentage
interest expenses and income was slightly lower and
points to 28.1% of sales. Higher sales volumes, very
as a percentage of sales was unchanged at 0.4%.
stable sales prices, a slightly improved product mix
and reduced wholesale prices offset the cost of labor
As in the previous year, the balance of other operat-
and materials in production. In addition, the take-
ing income and expenses was in line with budget.
over of sales activities in the U.S. by our own subsidiary Loewe Opta, Inc. resulted in higher average
profits due to the elimination of the margin of the
previous distributor.
3. CAPITAL EXPENDITURE BELOW
PREVIOUS YEAR DUE TO TIMING
DIFFERENCES
The disproportionately high increase in sales and
marketing expenses of EUR 2.1 or 1.0 percentage
At EUR 4.0 million, the capital expenditure of the
point to 17.5% of sales compared to the prior year
first three months of 2002 was below that of the
period was primarily related to the costs for the
comparable prior year period due to timing differ-
sales organization of Loewe Opta, Inc., USA in the
ences. In addition to development costs subject to
first three months of 2002.
mandatory capitalization in accordance with International Accounting Standards (IAS) (EUR 1.2 million),
General administrative expenses increased at a
they related to expenses for construction (EUR 0.4
disproportionately low rate of EUR 0.1 million and
million), tools for new products (EUR 0.3 million)
declined by 0.1 percentage points to 2.8% of sales.
and other investments aimed at lowering costs and
enlarging capacities, especially in production.
At EUR 4.6 million, depreciation and amortization
for the first three months of 2002 were slightly
under the previous year level due to lower depreciation on tools.
Home Media Systems
Capital expenditure
in EUR million
Depreciation and
amortization
1st Quarter 1st Quarter 1st Quarter 1st Quarter
Intangible assets
2002
2001
2002
2001
1.4
1.6
1.4
1.4
2.6
4.0
3.2
3.4
Property, plant, and
equipment
Financial assets
Total
–
–
–
–
4.0
5.6
4.6
4.8
2002 8 Report 1st Quarter 2002
Seven different upgrade kits can extend the capabilities of the new Systems TV Articos 32 at any time.
4. REDUCTION IN NET LIABILITIES
DUE TO SEASONAL FACTORS
Compared to December 31, 2001, the balance sheet
structure as of March 31, 2002 is primarily marked
by the customary seasonal reduction in trade receivables as well as the associated lower need for
in EUR million
March 31, December 31, March 31,
2002
2001
2001
Fixed assets
61.8
62.4
59.1
Working capital
37.0
47.1
37.4
working capital. Together with the continued positive
development of sales and earnings, it was possible
to noticeably reduce net liabilities.
Assets/liabilities
discontinued after deduction of liabilities at EUR 5.4
of the division to be
discontinued
Shareholders’ equity
Minority interests
Net liabilities
Working capital,
Home Media Systems
The balance of assets tied up in the division to be
million was nearly unchanged from the end of the
5.4
5.1
6.5
79.4
75.2
73.2
0.8
0.8
0.7
24.0
38.6
29.1
March 31, December 31, March 31,
2002
2001
2001
in EUR million
previous year. The slight increase in relation to the
balance as of December 31, 2001 is primarily due to
the sharp reduction in trade accounts payable
compared to the slower reduction in inventories.
Primarily due to structural changes, inventories within the working capital increased by EUR 5.1 million
compared to the balance at the end of the previous
year. Since the fourth quarter of 2001, deliveries to
Inventories
50.2
45.1
50.7
14.2
14.5
20.2
36.0
30.6
30.5
thereof: raw materials and
supplies, unfinished goods
German Loewe organization, resulting in a reduction
thereof: finished goods
and merchandise
addition, the takeover of distribution activities in the
U.S. market by Loewe Opta Inc. made it necessary
and other assets
70.6
90.9
66.2
Other provisions
– 46.9
– 50.2
– 41.4
– 36.9
– 38.7
– 38.1
37.0
47.1
37.4
Trade accounts payable
Working capital
of the finished goods inventory at the French distributor with a corresponding increase at Loewe. In
Trade accounts receivable
and other liabilities
dealers in France have been made directly via the
to set up a new finished goods inventory.
9 2002
Storage space with elegance: the Articos 32 on Cube 2
In line with the seasonal trend of sales, trade
accounts receivable and other assets were reduced by
5. CASH FLOW NOTICEABLY HIGHER
THAN IN PRIOR YEAR PERIOD
EUR 20.3 million compared to the balance as of
December 31, 2001. The increase by March 31, 2001
is due to the higher sales volume.
in EUR million
1st quarter 1st quarter
The increase in other provisions compared to March
Cash flow from
31, 2001 takes into account the general extension of
Operating activities of the
the warranty period for Loewe products to two years,
Home Media Systems division
higher bonus obligations related to volume and
Investing activities of the
possible license claims by third parties. The reduction
Home Media Systems division
since December 31, 2001 relates primarily to the
Free cash flow of
seasonal payment of bonuses to dealers.
Home Media Systems division
2002
2001
19.1
9.9
– 4.0
– 5.5
15.1
4.4
– 0.4
– 4.5
1.0
– 5.9
15.7
– 6.0
Free cash flow of
The assets tied up in the Telecommunications division
Telecommunications division
to be discontinued primarily relate to inventories and
Net cash used/provided by
trade accounts receivable as well as other provisions.
financing activities
Both inventories and trade accounts receivable de-
Cash-effective change in liquidity
clined since yearend by EUR 3.2 million each.
The EUR 4.2 million increase in shareholders’ equity
to EUR 79.4 million (before distribution of the
dividend for fiscal year 2001) relates exclusively to
the net income for the first three months of 2002.
Shareholders’ equity
in EUR million
Balance as of 12/31/01
Subscribed
Capital
Other
Profit
Total
capital
reserve
retained
brought
shareholders’
earnings
forward
equity
7.1
44.9
5.5
17.7
75.2
–
–
–
4.2
4.2
7.1
44.9
5.5
21.9
79.4
Net income
1st Quarter 2002
Balance as of
March 31, 2002
2002 10 Report 1st Quarter 2002
The feeling of cinema at home: With its integrated Dolby Digital upgrade kit, the Aconda offers a breathtaking sound experience.
At EUR 19.1 million, the cash flow from operating
A system remote control was developed to production
activities was EUR 9.2 million higher than in the
readiness. In addition to controlling the audio/video
comparable prior year period due to a EUR 4.2
system, this unit can also control home networking
million reduction in tax payments and due to the
functions via an RF interface.
fact that the net current assets at EUR 4.9 million
were reduced more strongly than in the comparable
In the development of LCD (liquid crystal display)
prior year period.
televisions, the focus was on mechanical design and
the development of the electric circuitry for a 20 inch
The net cash used by investing activities of EUR 4.0
unit which will be launched in the fall.
million was EUR 1.5 million lower than in the comparable prior year period. This decrease is primarily
In digital television, the next product generation was
due to the timing of invoices. On an annual basis,
realigned to take into account the requirements for
investment spending will be higher than the level of
pay TV, particularly in the German language area.
the previous year.
Development on the TVO 3 online platform for
At EUR –0.4 million, the free cash flow of the
multimedia televisions was continued to production
Telecommunications division to be discontinued was
readiness so that the products will be launched on
clearly better than the prior year value of EUR –4.5
the market in the next quarter.
million. The negative balance in the first quarter
of the prior year was primarily due to the buildup of
SALES AND MARKETING
inventories and trade accounts receivable.
The product line marketed through our own sales
Overall, the cash and cash equivalents of the Loewe
company in the U.S. is concentrated on high-end large-
Group were increased by EUR 15.7 million to EUR
format sets based on HDTV (high-definition television)
16.4 million in the first quarter of 2002.
technology (1080i) that have been developed
especially for the North American market. They are
DEVELOPMENT ACTIVITIES
designed for high-resolution television signals, a technology that will be implemented in the U.S. before
In the first quarter of 2002, all 100 Hz televisions
being introduced in Europe.
were converted to the new MediaPlus Q 2500
chassis platform. As a result, the entire 100 Hz prod-
Loewe has once again proved the outstanding
uct range can be outfitted with one base platform
quality of the design of its sets in 2002. The iF Inter-
and at the same time this has made it possible for
national Forum Design Hanover conferred awards on
all sets to be upgraded with DVB and online access.
the Aconda select and Articos 32 televisions, the
Moreover, all sets are now technically capable of
Concertos satellite system and the RC 1 remote con-
being integrated into a combined system with both
trol. In addition, Loewe was the only manufacturer to
a separate sound system – consisting of Certos and
receive the “iF Silver Award” for a sound system, the
Concertos – as well as forming a total system with
Certos. Designzentrum Nordrhein-Westfalen in Essen
the Bose Lifestyle 50 audio system.
also presented the products Articos, Certos and RC 1
the “red dot award”.
11 2002
The DVD player and television form one unit: the Xemix can be operated effortlessly with the remote control of the Loewe television.
For Loewe, CeBIT 2002 was the forum for the intro-
product liability, interest, and currency risks as well
duction of digital TV and the third generation of
as the potential effects of the EU Electronic Waste
Internet-capable television, Loewe Online plus. The
Directive as of 2005. The individual risks are in part
“Living Room of the Future” included a practical
interrelated and can overlap. No significant changes
demonstration of the networking of Loewe TV sets
arose in the first three months of fiscal year 2002
and electronic home automation (control of lighting,
from the previous year.
blinds, mobile Internet access und much more). The
MediaPlus TV sets make it possible for Loewe to
offer the central control units for future home auto-
IMPORTANT EVENTS AFTER THE END
OF THE QUARTER
mation applications.
After negotiations with several potential buyers,
NEW JOBS CREATED
Loewe AG decided to close Loewe Telecom GmbH
since it was not possible to adequately protect the
With an 8% expansion of business volume in the
Loewe brand in the context of temporary licensing.
Home Media Systems division to be continued, the
number of employees at the end of the quarter was
OUTLOOK FOR ALL OF 2002
up proportionately to 1,218 compared to the end
of the first quarter of the previous year. Of the 94
The first three months of 2002 were successful for
employees added, 31 are primarily involved in
Loewe. We achieved our mid-range targets of
expanding sales and marketing, 17 in development
increasing sales by 8%, EBIT by 10% and earnings
and 23 in production including quality assurance.
per share by over 10%.
Loewe Opta, Inc. USA, which commenced operations
in the first quarter of 2002, is included in the build-
Despite the worsened overall economic conditions,
up of human resource capacities with 13 persons.
we are also confident of achieving our ambitious
Compared to yearend 2001, the number of
growth targets for all of fiscal year 2002.
employees in the Home Media Systems division
increased by twelve.
OTHER INFORMATION
At the end of the first quarter of 2001, eighteen
This quarterly report was thoroughly reviewed by the
persons were still employed in the division to be dis-
group auditor Abstoß & Wolters OHG, Wirtschafts-
continued, some of whom will leave the Company
prüfungsgesellschaft Steuerberatungsgesellschaft,
or be taken over into the Home Media Systems
Mönchengladbach. No exceptions were found.
division.
As of March 31, 2002, the Executive Board held
RISKS OF FUTURE DEVELOPMENT
572,025 shares in Loewe AG, which was unchanged
from the balance as of December 31, 2001.
The most important risk areas include market risk,
the technology and design position, dependence on
important suppliers and employees in key positions,
2002 12 Report 1st Quarter 2002
CONSOLIDATED INCOME STATEMENT FOR THE PERIOD
JANUARY 1 THROUGH MARCH 31, 2002
in EUR million
Sales
January - March 2002
January - March 2001
%
%
101.0
94.1
Division to be discontinued
– 5.0
Home Media Systems division
96.0
100.0
– 4.8
89.3
100.0
– 69.0
– 71.9
– 65.3
– 73.1
27.0
28.1
24.0
26.9
– 16.8
– 17.5
– 14.7
– 16.5
General administrative expenses
– 2.7
– 2.8
– 2.6
– 2.9
Other operating income/expense
0.0
0.0
0.1
0.1
Income from participating interests
0.0
0.0
0.0
0.0
EBIT of the division to be continued
7.5
7.8
6.8
7.6
Manufacturing cost of goods and services
produced in order to generate sales*)
Gross margin
Selling expenses
Interest and similar income
Interest and similar expenses
0.1
0.1
0.1
0.1
– 0.4
– 0.4
– 0.4
– 0.4
7.2
7.5
6.5
7.3
0.0
0.0
– 0.1
– 0.1
Profit from ordinary activities (EBT)
of the division to be continued
Profit from ordinary activities (EBT)
of the division to be discontinued
Profit from ordinary activities (EBT)
Income taxes
Net income before minority interests
Minority interests
Net income after minority interests
7.2
7.5
6.4
7.2
– 2.9
– 3.0
– 2.6
– 3.0
4.3
4.5
3.8
4.2
– 0.1
– 0.1
– 0.1
– 0.1
4.2
4.4
3.7
4.1
thereof:
Division to be continued
4.2
4.4
3.8
4.2
Division to be discontinued
0.0
0.0
– 0.1
– 0.1
*)
the following items up to and including interest and similar expenses only contain
information concerning the division to be continued
Basic earnings per share
0.59
0.52
0.59
0.53
division to be continued
0.55
0.49
Number of shares issued
7,149,400
7,075,000
Number of shares and options issued
7,575,000
7,575,000
Basic earnings per share of the
division to be continued
Diluted earnings per share of the
13 2002
CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2002
in EUR million
3/31/2002
12/31/2001
3/31/2001
ASSETS
Fixed assets*)
Intangible assets
Property, plant, and equipment
Financial assets
9.4
9.5
8.9
52.2
52.6
49.9
0.2
0.3
0.3
61.8
62.4
59.1
Inventories
50.2
45.1
50.7
Trade accounts receivable
66.1
86.1
62.1
Current assets*)
Other short-term receivables
4.5
4.8
4.1
16.4
9.5
2.4
137.2
145.5
119.3
Deferred tax assets*)
1.6
1.3
0.9
Assets of the division to be discontinued
8.5
11.7
10.2
209.1
220.9
189.5
Cash and cash equivalents
Total ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
Shareholders' equity
Subscribed capital
Capital reserve
7.1
7.1
7.1
44.9
44.9
43.6
Retained earnings
5.5
5.5
2.5
Distributable profit
21.9
17.7
20.0
79.4
75.2
73.2
0.8
0.8
0.7
26.5
27.7
26.2
3.5
1.9
0.5
46.9
50.2
41.4
76.9
79.8
68.1
4.3
4.3
4.9
Trade accounts payable
30.8
29.8
33.3
Other short-term liabilities
13.8
24.4
5.6
48.9
58.5
43.8
3.1
6.6
3.7
209.1
220.9
189.5
Minority interests
Provisions*)
Provisions for pensions and similar obligations
Tax provisions
Other provisions
Liabilities*)
Long-term debt
Provisions and liabilities of
the division to be discontinued
Total LIABILITIES AND SHAREHOLDERS' EQUITY
*)
of the division to be continued
2002 14 Report 1st Quarter 2002
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD
JANUARY TO MARCH 2002
in EUR million
2002
2001
7.2
6.5
Operating activities*)
Profit from ordinary activities
Depreciation and amortization of fixed assets
4.6
4.8
Increase in pension provisions
– 1.2
– 0.9
Income taxes paid
– 1.6
– 5.7
9.0
4.7
Increase in inventories
– 5.1
– 7.7
Decrease in trade accounts receivable and other assets
20.3
16.4
Decrease in other provisions
– 3.3
– 0.1
Decrease in trade accounts payable and other liabilities
– 1.8
– 3.4
Change in net current assets
10.1
5.2
Net cash provided by operating activities
19.1
9.9
– 4.0
– 5.6
Net cash before changes in net current assets
Change in net current assets
Investing activities
Payments for purchases of intangible assets
and property, plant and equipment
Proceeds from disposals of investments
Net cash used by investing activities
0.0
0.1
– 4.0
– 5.5
Free cash flow of the division to be continued
15.1
4.4
Free cash flow of the division to be discontinued
– 0.4
– 4.5
Total free cash flow
14.7
– 0.1
Financing activities
Borrowing
1.0
0.0
Repayment of loans
0.0
– 5.9
Net cash used/provided by financing activities
1.0
– 5.9
15.7
– 6.0
3/31/2002
12/31/2001
Cash-effective change in liquidity
Composition of cash and cash equivalents
Change
(in EUR million)
Liquid funds
Short-term bank loans
Cash and cash equivalents
*)
16.4
9.5
6.9
0.0
– 8.8
8.8
16.4
0.7
15.7
The following items up to and including net cash
used by investing activities only contain data of the division to be continued
15 2002
Loewe in Berlin: the new gallery “Unter den Linden”
REVIEW REPORT
does not convey overall a suitable understanding of
the Group’s assets, financial position and earnings or
does not suitably present the risks of future develop-
To: the Executive Board of Loewe AG, Kronach
ment. A review is limited primarily to inquiries of the
employees of the Group and analytical audit evalu-
We have reviewed the interim consolidated financial
ations and therefore does not provide the assurance
statements consisting of the balance sheet, income
achievable through an audit. Since in accordance
statement and statement of changes in shareholders’
with our engagement, we have not performed an
equity and the group management report for the
audit, we cannot issue an audit opinion.
period January 1 to March 31, 2002. The preparation
of the interim consolidated financial statements and
On the basis of our review, we certify that no matters
the group management report according to Interna-
became known to us which give us cause to believe
tional Accounting Standards (IAS) is the responsibility
that the consolidated interim financial statements
of the company’s management. Our responsibility is
were not prepared in all material aspects in conformi-
to issue a report concerning the interim consolidated
ty with IAS or that in accordance with the principles
financial statements and the group management
of orderly accounting, the group management report
report on the basis of our review.
does not convey overall a suitable understanding
of the Group’s assets, financial position and earnings
We conducted our review of the interim consolidated
or does not suitably present the risks of future
financial statements and management report in
development.
accordance with the German principles for the review
of financial statements established by the “Institut
Mönchengladbach, May 03, 2002
der Wirtschaftsprüfer” (IDW). These standards require that we plan and perform the review such that
Abstoß & Wolters OHG
with a critical evaluation, we can obtain reasonable
Wirtschaftsprüfungsgesellschaft
assurance that no indications are present that the
Steuerberatungsgesellschaft
consolidated interim financial statements were not
prepared in all material aspects in conformity with
IAS or that in accordance with the principles of
Grage
Straaten
orderly accounting, the group management report
Auditor
Auditor
LOEWE AG
Industriestrasse 11
D-96317 Kronach
PO Box 1554
D-96305 Kronach
Telephone switchboard: + 49 (0) 92 61/99-0
Investor Relations:
+ 49 (0) 92 61/99-984
Public Relations:
+ 49 (0) 92 61/99-217
Customer Care Center: + 49 (0) 18 01/22 25 63 93
Fax:
+ 49 (0) 92 61/99-994
E-mail:
[email protected]
Internet:
www.loewe.de
Ticker symbol:
LOE
Security code number:
649410
ISIN code:
DE 0006494107
Stock market trading with official listing
and participation in the MDAX
Indices:
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