Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — FY2020/21 Earnings Presentation

24 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 9, 2021

1. Slide 1: Perspectives

   Perspectives Heidelberger Druckmaschinen AG – Annual press conference Rainer Hundsdörfer, CEO | Marcus A. Wassenberg, CFO | Wiesloch, June 09, 2021 PERSPECTIVES

2. Slide 2: Agenda

   Agenda 1. Current situation | Rainer Hundsdörfer, CEO 2. Financial figures, stabilization & outlook | Marcus A. Wassenberg, CFO 3. Strategy, perspectives & summary | Rainer Hundsdörfer, CEO © Heidelberger Druckmaschinen AG 2

3. Slide 3: Heidelberg is back.

   Heidelberg is back. Clear perspectives for sustainable profitability and structural growth. Sales slightly above expectations, noticeable increase in order intake Break-even point lowered further EBITDA-margin better than forecasted Positive free cash flow and a continuous low level of net financial

4. Slide 4: Agenda

   Agenda 1. Current situation | Rainer Hundsdörfer, CEO 2. Financial figures, stabilization & outlook | Marcus A. Wassenberg, CFO 3. Strategy, perspectives & summary | Rainer Hundsdörfer, CEO © Heidelberger Druckmaschinen AG 4

5. Slide 5: Financial year 20/21 at a glance.

   Financial year 20/21 at a glance. Good starting point created. Markets pick up again - benefiting from market offensive. Continuous increase in order intake in key markets since May 2020, sales push and new operating model as success factors. Transformation program is effective - successfully and su

6. Slide 6: Financial year 20/21.

   Financial year 20/21. We delivered: Significant improvement in KPIs despite pandemic. Sales EBITDA-margin* Profit after taxes 2,349 FY 20 FY 21 1,913 4,3% 7,6% 8% -43 - 18% 146 106 +25% #1 #2 #3 -343 FY 20 FY 21 FY 20 FY 21 Free Cashflow Financial debt Leverage 225 471 271 40 0,4 0,5 -42% #4 #5 #6 F

7. Slide 7: Upward trend gives confidence.

   Upward trend gives confidence. Order intake increases significantly in the course of the year. // Order intake fiscal year 20/21 by month +68% - 15% 2,362 2,000 Ø 193 Ø 186 Ø 173 Ø 115 108 105 133 167 159 192 177 164 216 159 185 235 FY 19/20 FY 20/21 Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar

8. Slide 8: Markets pick up again.

   Markets pick up again. Continuous increase in orders since May'20 in the most important regions. Mio. € China Mio. € Eastern Europe Mio. € Germany Mio. € USA 150 150 150 150 100 100 100 100 50 50 50 50 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 19/20 FY 20/21 FY 19/20 FY 20/21 FY 19/

9. Slide 9: Transformation is effective - successfully and sustainably.

   Transformation is effective - successfully and sustainably. Lowered structural costs improve profitability. Revenue EBITDA-Margin* Profit after taxes ~ € 170m* FYFY 2120 2,349 Non-sustainable cost savings 1,913 4.3% 7.6% Sustainable cost savings ~ € 140m* -438% - 18% 146 106 ~ € 85m +25% #3 Personne

10. Slide 10: The transformation has an effect.

    The transformation has an effect. Significant positive impact on EBITDA in FY 20/21. // Main factors impacting earnings: // EBITDA excl. restructuring result • Volume and margin (approx. € 221m) (-) € m 150 146 • Savings from Transformation program (+) +25% (approx. € 85m) 102 • Short-time work & si

11. Slide 11: Financially stabilized.

    Financially stabilized. Debt reduced - financial headroom increased. // Main factors: // Maturity profile as of Mar. 31, 2021 €m • Early repayment of the HYB (€ 150m) concluded on September 9, 2020. Interest reduction by approx. € 12m p.a. 305 2 • No major maturities in the near future. • Availabili

12. Slide 12: Balance sheet.

    Balance sheet. Debt reduced and capital freed up. > Assets FY 2020 FY 2021 > Equity and liabilities FY 2020 FY 2021 31-03-2020 31-03-2021 31-03-2020 31-03-2021 Fi gures i n mEUR Fi gures i n mEUR 2 Fixed assets 953 902 Equity 202 109 1 Current assets 1.532 1.150 Provisions 1.338 1.253 3 thereof inve

13. Slide 13: Global economy on the road to recovery.

    Global economy on the road to recovery. Machinery and plant engineering picks up speed again. The prospects for further growth in China and Asian countries as well as the USA are good. • Order intake is clearly on course for growth. • The chances of production growing from the second quarter of 2021

14. Slide 14: Outlook.

    Outlook. With a tailwind into the new financial year 21/22. Positive trend in order intake promises significant increase in sales. Sales > 2 bn € Focus on strategic initiatives gives Heidelberg a strong position in the recovering market environment. Rising earnings quality due to compensation for si

15. Slide 15: Pushing structural growth.

    Pushing structural growth. New segmentation shows potentials and successes per segment. Customer Segment Print Solutions Packaging Solutions Technology Solutions Customer Commercial Digital Folding Carton Label E-Mobility Zaikio Category Industrial Print Other Technology Other Packaging Other Printe

16. Slide 16: Agenda

    Agenda 1. Current situation | Rainer Hundsdörfer, CEO 2. Financial figures, stabilization & outlook | Marcus A. Wassenberg, CFO 3. Strategy, perspectives & summary | Rainer Hundsdörfer, CEO © Heidelberger Druckmaschinen AG 16

17. Slide 17: Strategy.

    Strategy. Leverage leading positions - focus on revenue and growth drivers. Packaging China Digital business E-mobility models © Heidelberger Druckmaschinen AG 17

18. Slide 18: Packaging.

    Packaging. Grow faster than the market. Agenda for growth Global No. 1 in packaging printing • End-to-end automation from reel to finished package 47% market share among • Expand data-driven services sheetfed offset presses for folding carton and label • Tailored portfolio specifically for growing A

19. Slide 19: China.

    China. Score with investments and innovations in the No. 1 growth region. Agenda for growth No. 1 in China • Expand site in terms of personnel and portfolio 50% market share in the • Increase localization to >85%, including through partnerships important 70x100 sheetfed offset format • Increase life

20. Slide 20: Digital business models.

    Digital business models. Cloud and data-based software and solutions in focus. Agenda for growth 26% of lifecycle sales • Consistently expand usage-based contract models Heidelberg already achieves • Switch Prinect offering to cloud-based contract models with contract business • Expand Zaikio to inc

21. Slide 21: E-mobility.

    E-mobility. Successful as a leading provider in the charging infrastructure market. E-mobility sales more than Agenda for growth doubled • Carve out of the business into HEI Charge GmbH Over 20 million euros in sales due to high demand for • Production capacity to double again by end of FY 21/22 cha

22. Slide 22: Perspectives.

    Perspectives. Creating value for customers, shareholders and employees. HDM achieves financial turnaround and is HDM will grow profitably in its core already realizing significant earnings markets, particularly in the packaging improvements as a basis for further growth. segment, in China and with d

23. Slide 23: Financial calendar 2021/2022.

    Financial calendar 2021/2022. © Heidelberger Druckmaschinen AG 23

24. Slide 24: 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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