loewe AG, Kronach

- New highly appealing products
- Systematic expansion of distribution
- Focused communication
- Good start to 2012
- Targets for the year confirmed

Kronach/Munich, May 15, 2012 – "We have put our Company to the test, we have intensively analyzed our strengths and weaknesses and evaluated our opportunities and risks. The result is an enhanced strategy that we are using to set the stage for a successful future," commented Loewe CEO, Oliver Seidl, during the Company's annual shareholders' meeting in the Alte Kongresshalle in Munich. After reporting a decline in sales and a loss for fiscal year 2011, Loewe has made a good start to 2012. Despite the weak market trend, the Loewe Group significantly increased sales in the first quarter of 2012 by 8% to EUR 66.6 million. The business development in the Audio/DVD product group was also very pleasing, particularly thanks to the new Loewe Audiodesign solutions. In this segment, the Kronach-based company increased its sales in the first quarter by as much as 32% to EUR 7.4 million.

As expected, the higher sales volume and an improved margin enabled Loewe to significantly reduce losses at the beginning of the year. In the first three months of 2012, the company's EBIT loss was down to only EUR 0.9 million compared to a loss of EUR 2.9 million in the first quarter of 2011. Moreover, Loewe's sound capital structure and cash and cash equivalents of EUR 36.2 million (March 31, 2012) put it on a good footing for the future. For that reason, Loewe continues to expect growth in sales and a significant improvement in earnings for fiscal year 2012.

The bedrock of the enhanced corporate strategy is the Loewe premium brand. "Our  minimalist design, intelligent innovations and above all our exclusive individuality set Loewe apart from all other brands in our industry," continued Seidl. In particular, the individualizability and the unique combination of technology and emotion are competitive advantages that can have a strong influence on purchasing decisions in the premium segment. "As the inventor of television, we will in the future focus even more intensely on easy to use systems that combine the best picture quality with the best sound," he continued. For the medium term, the strategic goal is for Loewe to become the internationally leading premium brand for individual home entertainment solutions.

Loewe has successfully begun to restructure its complete TV product family. The new product line Connect ID (from 32 to 46 inches) will be launched in the price segment above EUR 1,500 in the next few days. ID stands for Individual Design due to the fact that the Loewe Connect ID offers individual style and technical features like no other set in this price category. "With the Connect ID, we specifically meet the needs of a significantly broader target group while simultaneously appealing to a younger base of customers who will thereby be introduced to the Loewe brand at an earlier stage," said Loewe CTO, Dr. Detlef Teichner. Connect ID is positioned in this attractive price segment which will grow by approximately 25% in the current 2012 fiscal year. The market launch of the new Connect ID TV line is currently being accompanied by a communication campaign including events with retailers, cooperation with the prominent art gallery Lumas and a large-scale print campaign.

The product offensive has already demonstrated clear results in audio. The new highly attractive Loewe Audiodesign products have already become well established in the market (May 2012: first place in the Macwelt  trade magazine *). And working jointly with Apple, Loewe has also expanded its distribution in this segment. In addition to qualified retailers, the Loewe AirSpeaker has been marketed via Apple Stores in Germany and via Apple's online sales throughout the rest of Europe for several weeks now.

Another primary component of the strategic enhancement of the premium brand Loewe is the expansion of the premium-based marketing within and outside of Germany. Loewe is currently working on country-specific distribution concepts for the different European and international markets. Success will continue to be based on the partnership with qualified retailers in the German-speaking core markets. In non-German-speaking European countries, Loewe will in the future work even more intensively with retail trading partners. The Company is also becoming more intensively engaged in global growth markets.

Loewe is convinced of the success of its enhanced premium strategy and will emerge from the crisis of the last two years with greater strength. "In the years to come, we will demonstrate that it is possible for a European manufacturer to set standards in the fields of design, technology, networking and ease of use," commented Seidl to the shareholders. "We are firmly committed to our premium strategy and will implement it even more systematically in the years to come."


*) The editorial staff’s summation was, "The Loewe look is already legendary. Metal and high-quality workmanship; added to this is individuality as in the case of televisions through the use of inlays in almost any RAL color or metal. However, appearance is one thing; the technology must also be right. And the Loewe AirSpeaker is no disappointment in this regard. ... Outstanding sound, a variety of connections, high-quality workmanship."