Heidelberger Druckmaschinen Ag · XETR:HDD
Heidelberger Druckmaschinen — Shareholder Meeting (July 2020)
17 slides from Heidelberger Druckmaschinen's shareholder meeting presentation, Jul 23, 2020
Slide 1: Welcome to the Annual General Meeting 2020
Our goals: Profitability – Competitiveness – Safeguarding the future Heidelberger Druckmaschinen AG – Annual General Meeting Rainer Hundsdörfer, CEO | Wiesloch, July 23, 2020 Welcome to the Annual General Meeting 2020
Slide 2: The world is facing dramatic change. Great teamwork in times of lockdown.
The world is facing dramatic change. Great teamwork in times of lockdown. © Heidelberger Druckmaschinen AG 2
Slide 3: Heidelberg is on the right track
The world is facing dramatic change. Heidelberg is on the right track. • Heidelberg's digital transformation is the right answer to the structural changes in our industry • The Covid-19 pandemic reinforces the need for change processes • Operational realignment sets the course for profitability, com
Slide 4: Sales and earnings development in the Group
Sales and earnings development in the Group. Covid-19 pandemic weighs on fourth quarter. Group net sales EBITDA* Net result after taxes €m €m 1000 400 180 750 200 102 21 -343 500 0 250 -200 0 -400 Q1 Q2 Q3 Q4 FY 18/19 FY 19/20 FY 18/19 FY 19/20 © Heidelberger Druckmaschinen AG *EBITDA excluding rest
Slide 5: Financial stability
Financial stability. Net financial debt significantly reduced. Net debt Cash Equity €m €m 500 500 400 400 300 300 200 200 100 100 0 0 Q1 Q2 Q3 Q4 FY 18/19 FY 19/20 FY 18/19 FY 19/20 © Heidelberger Druckmaschinen AG 5
Slide 6: Realignment: major progress in action package
Realignment. Major progress in rapid implementation of action package. • Reduction of net debt by transfer of liquidity reserve • Reorganization of occupational retirement provision strengthens equity • Streamlining the organization: • Reduction of the Board of Management • Reduction of management l
Slide 7: Restructuring of the production network
Realignment. Restructuring of the production network to enhance competitiveness. • Wiesloch to be strong future location for high-end products • Mass production of printed organic electronics to start at Wiesloch site • Increased capacities for production of volume models in China • Joint venture wi
Slide 8: Financial impact of the adopted measures
Realignment. Financial impact of the adopted measures. Discontinuation of unprofitable products € 50 m Significant reduction of production costs and structural costs € 50 m ∑ Improvement in operating profit (EBITDA) € 100 m © Heidelberger Druckmaschinen AG 8
Slide 9: Development in Q1 and outlook 2020/21
The world is facing dramatic change. Development in Q1 and outlook 2020/21. • Impact of the pandemic are a major challenge, in particular for exporting companies, such as Heidelberg • Sales in Q1 expected to be around 30 % below previous year • Weak incoming orders from all major regions – recovery
Slide 10: Outlook for FY 20/21
Outlook for FY 20/21. Covid-19 pandemic impedes forecast. -• Weak order activity worldwide +• Beginning light market recovery -• Burden due to realignment and +• Profitability gains from realignment potential additional measures ∑ • Sales expected to be significantly down on prior year • EBITDA marg
Slide 11: Our core business & our products
Our core business & our products. Added value for our customers – from quotation to invoice*. Core business Quotation Packaging & Label Commercial Invoice Service & Software Sheetfed Postpress Consumables Smart Printshop Heidelberg Transaction Heidelberg Subscription Specific package for Volume-base
Slide 12: Outlook – Heidelberg PMI Climate Report
Outlook – Heidelberg PMI Climate Report. Heidelberg successfully operates in future markets. China’s market (Packaging/Label & Commercial) • Packaging and label printing have been navigating quite stable through the crisis. They are crisis- resistant and are considered systemically important. • In c
Slide 13: Positioning in growth markets: China
Positioning in growth markets. China. • Heidelberg is very competitive in China with around 850 employees. In order to realize growth opportunities, the site is to be expanded to more than 1,000 employees. • The product portfolio produced in China is continually adapted to the requirements of the As
Slide 14: Positioning in growth markets: packaging
Positioning in growth markets. Some 50 % of sales with sheetfed offset presses in packaging. • Covid-19 pandemic shows systemic relevance of packaging for key industries such as food and healthcare. • Market leader: Over 2,000 sheetfed offset presses installed at packaging customers worldwide in rec
Slide 15: Profitability: expansion of contract business
Profitability. Expansion of contract business to stabilize sales. Monthly billing Price per sheet LIFECYCLE LIFECYCLE SUBSCRIPTION SUBSCRIPTION SMART PLUS SMART PLUS Equipment Consulting & Training Consulting & Training Prinect Prinect Prinect Consumables Consumables Consumables Consumables Service
Slide 16: Next steps and goals
Next steps and goals. A clear agenda towards profitability. The strategic focus for the coming months is clear: 1. Safeguarding liquidity 2. Implementing the workforce measures 3. Systematic implementation of transformation to agile player 4. Improving profitability 5. Extending digital technology l
Slide 17: Disclaimer
Disclaimer 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 devel
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