Heidelberger Druckmaschinen Ag · XETR:HDD
Heidelberger Druckmaschinen — 9M FY2017/18 Earnings Presentation
22 slides from Heidelberger Druckmaschinen's earnings presentation, Feb 8, 2018
Slide 1: Results 9m FY2017/2018 - Heidelberg goes digital
Results 9m FY2017/2018 Rainer Hundsdörfer, CEO | Dirk Kaliebe, CFO | Ulrich Hermann, CDO February 8, 2018 Heidelberg goes digital.
Slide 2: Key questions on digital transformation and medium term targets
• Where do we stand with regards to our digital transformation? • What does this mean in terms of reaching our medium term targets? © Heidelberger Druckmaschinen AG 2
Slide 3: Update Digital transformation
Update Digital transformation • Subscription is potential game changer in our industry • First subscription agreement with a well-known packaging printer signed, for a total period of five years • This has been followed by further agreements in the fourth quarter, primarily with our competitors’ cus
Slide 4: Heidelberg goes digital: Next milestone achieved
Heidelberg goes digital: Next milestone achieved Subscription model: Heidelberg decides about input factors Performance contracts for defined customer groups: Impression charge model HD Assistant / e-shop: “Customers pay for customer subscribes to their output rather than platform for their input” T
Slide 5: Update Digital transformation & Operational excellence
Update Digital transformation & Operational excellence • Dedicated competence center for digital marketing and e-commerce founded together with iq!– the “Heidelberg Digital Unit” (HDU) that is becoming the digital internet service provider for our global sales organization • HDU creates a whole new
Slide 6: Digital transformation increasingly taking shape
Digital transformation increasingly taking shape Market trend: • Industrialization of printing companies continues • Growth of print production volume (PPV) in market segments, e.g. packaging • Increased utilization of installed equipment leads to declining number of printing units • Fewer printing
Slide 7: Growth through Digital transformation
Growth through Digital transformation Benefits for Heidelberg: • Recurring revenues, price stability • Significant increase of market share in consumables • Higher profitability at growing customers • Predictable order intake for factory reduces negative effects of cyclical business • Shortening of
Slide 8: Growth through Digital transformation: lifetime value comparison
Growth through Digital transformation Comparison Lifetime-Value over 5 years Transactional Recurring revenues in the Turnover + 70 % lifecycle of a machine Consumables Consumables Service Service Equipment Equipment • Subscription allows immediate substantial increase in consumables share • Therefor
Slide 9: Successful launch of Subscription model
Successful launch of Subscription model • Robust pipeline - >100 opportunities identified, represent >600m € value • Interest growing every day • Goal: 30 customers by end of FY19 more than realistic • Average 5 years contract Heidelberg and WEIG • Average >1 million € recurring revenue per implemen
Slide 10: Summary 9m FY2017/2018
Summary 9m FY2017/2018 • The new Heidelberg gains shape – increased demand for digital products and business modells; order intake in Q3 plus 16% • Sales volume (due to negative FX effects) on prior years level • EBITDA further improved after 9m • Net result after taxes excluding tax-one-off signifi
Slide 11: Key figures 9m 2017/18
Key figures 9m 2017/18 9m 16/17 9m 17/18 Δ pY ● Order intake +16% qoq, on par yoy after FX adjusting; order backlog with €693m on high level Order intake 1,990 1,912 -4% ● Sales on previous year’s level– FX adjusted (€39m in total Sales 1,680 1,657 -1% for 9m) slightly above PY EBITDA ● EBITDA excl.
Slide 12: Sales and EBITDA by segment in 9m FY2017/18
Sales and EBITDA by segment in 9m FY2017/18 • Heidelberg Digital Technology: Despite negative currency effects, sales and margin could be slightly improved as a result of volume effects • Heidelberg Digital Business & Services net sales was affected by negative FX and mainly by intentional reduction
Slide 13: Targets set. Outlook.
Targets set. Outlook. Outlook FY 2016/17 FY 2017/18 5-years target € 2,524m on previous year‘s level up to € 3 billion +€ 500m 7.1 % 7 – 7.5% Up to 10% +€ 100m HDT ~ 5% HDT 5-7% HDT 6-9% HDB ~9% HDB 8-10% HDB 8-11% Significantly below PY-level € 36m due to one-off tax burden, ∑ > € 100m operationall
Slide 14: Our medium term targets – sustainable & profitable growth
Our medium term targets – sustainable & profitable growth • Digital print portfolio (€ +200 million) • Digital business model (equipment– consumables – service: € +250 million) • Digital platforms (€ +50 million) • Digital business model / Volume growth (€ +50 million) • Cost efficiency (operational
Slide 15: Backup
BACKUP © Heidelberger Druckmaschinen AG
Slide 16: Balance Sheet
Balance Sheet > Assets FY 2017 FY 2017 FY 2018 > Equity and liabilities FY 2017 FY 2017 FY 2018 31-12-2016 31-03-2017 31-12-2017 31-12-2016 31-03-2017 31-12-2017 Fi gures i n mEUR Fi gures i n mEUR Fixed assets 727 741 793 Equity 246 340 345 Current assets 1.321 1.365 1.318 Provisions 924 898 851 th
Slide 17: Financial framework
Financial framework Maturity profile Other instruments RCFA (Jun-2019) Other instruments & REL | amortizing promotional loans Capital markets EIB | amortizing instruments BondHYB (Mai-2022) Convertible Bond (Mrz-2022) 26% 39% 35% 298 Syndicated 256 credit line 205 235 34 16 29 27 15 6 59* KJ 2017 KJ
Slide 18: Order intake – regional split 9m
Order intake – regional split Order intake 9m 2017/18 (9m 2016/17) South America 3.2% North America (3.0%) 16.9% (16.5%) EMEA 43.5% (45.1%) € 1.912m (€ 1.990m) 26.2% (25.1%) Asia/Pacific 10.2% (10.3%) Eastern Europe © Heidelberger Druckmaschinen AG 18
Slide 19: Order intake – regional split Q3
Order intake – regional split Order intake Q3 2017/18 (Q3 2016/17) South America 4.2% North America (3.3%) 17.0% (17.0%) 45.6% EMEA (41.4%) € 678m (€ 582m) 23.8% (26.6%) Asia/Pacific 9.4% (11.7%) Eastern Europe © Heidelberger Druckmaschinen AG 19
Slide 20: Key figures Q3 2017/18
Key figures Q3 2017/18 Q3 16/17 Q3 17/18 Δ pY ● Order intake in Q3 significantly improved by €96m Order intake 582 678 +16% ● Sales on previous year’s level (FX adjusted above PY) Sales 608 603 -1% ● EBITDA excl. restructuring result sligthly below previous year’s level; EBITDA margin at 7.5% (8.0%)
Slide 21: Financial Calendar
Financial Calendar June 12, 2018 Figures FY2017/2018 AGM FY 2017/2018 July 25, 2018 Release of the figures for the August 07, 2018 first quarter 2018/2019 Release of the figures for the second quarter 2018/2019 November 08, 2018 © Heidelberger Druckmaschinen AG
Slide 22: Important notice
Important notice This release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future
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