VIPsight - June 2013

COMPANIES

Rate change at Deutsche Bank reprimanded

The “quick-fix action” with which the Deutsche Bank surprisingly increased its capital by around three billion euros in late April has made shareholders “suspicious,” says Union Investment. It was always stressed that the bank did not need fresh capital, though it had long been at the bottom of the comparison group, Ingo Speich wondered, asking further why the need was suddenly seen for a capital increase, whereas with a core capital ratio of 8.8 percent the bank had been well under way at the end of March. While the Union Investment fund manager and other shareholder representatives also found words of praise for the capital-market transaction, they almost unanimously denounced the bank's continued high legal risks and public scandals. It has been struggling with countless lawsuits from disgruntled clients for many years. To this end, it has made provisions in the billions. High employee bonuses that are according to reasoning by shareholder representatives grossly disproportionate to the dividend amount also meet with a negative response.

Aixtron: Through drastic treatment back to its former strength

With a five-point plan and severe cuts, Aixtron SE wants to make its way back to sustainable profitability from the current bleak outlook: At the AGM in May, CEO Martin Goetzeler announced the elimination of about 20 percent of the jobs in Germany. He also wants to reduce operating expenses by 20 percent from the previous year.

Another point is the optimization of process and project procedures, especially in product development, and review of the service business. The company from Herzogenrath also aims to focus more on its core competency and integrate external partners more intensively. The specialized plant manufacturer wants thus to regain its leadership in technology for LED production.

The TecDax company had a disastrous start to 2013: in the first quarter losses exceeded sales. In view of a loss of 145 million euros last year, shareholders have no dividend. Despite the current situation Aixtron is, according to the company's board, free of debt. The chief executive did not want to give a forecast for 2013, given the uncertain market outlook. The reason for the poor result was, among other things, the drop in demand from LED manufacturers.

Jenoptik: Optimistic thanks to foreign demand

One of the few East German TecDax companies weakens: Jenoptik AG is suffering from reduced demand for lasers and optical systems from the semiconductor industry. The technology group's proceeds declined in the first quarter of 2013 by approximately four percent to €132 million. However, the board maintains its positive forecast of up to five percent revenue growth for the current year.

According to the Board the company is less sensitive to economic cycles due to the internationalization of business and will not immediately come into the red in the event of fluctuations. Thus, demand from abroad is still stable, especially from the U.S. and Chinese auto sectors. In 2014 Jenoptik again expects a turnover increase of ten percent. In 2017 the Thuringians want to cross the 800-million-euro annual turnover threshold. Last year, sales amounted to €585 million.

CEWE Color: Successfully reoriented

CEWE Color Holding AG continues to be on the growth track: the photo service provider is off to a good start in the first quarter and has confirmed its forecast for the full year 2013. In the usually weakest quarter the SDax company's turnover increased by almost twelve percent to around €107 million. Shareholders can be pleased too: the dividend rises to 1.45, from 1.40 in the previous year.

The online printing sector showed particularly strong growth, of more than 85 percent. The photofinishing segment has gained about 6 percent. The company has successfully adapted to the “digital revolution”: at the turn of the millennium the group was positioned more as a developer of analog photos, but now offers high-margin value-added products in digital photography - such as the CEWE photo book, the growth driver of the Group. Customers can order this printed photo album in various designs over the Internet and stock it online their with own digital photos.