Heidelberger Druckmaschinen AG · XETR:HDD

Heidelberger Druckmaschinen — FY2007/2008 Earnings Presentation

40 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 10, 2008

  1. Slide 1: © Heidelberger Druckmaschinen AG

    June 10, 2008 © Heidelberger Druckmaschinen AG Bernhard Schreier, CEO Dirk Kaliebe, CFO Andreas Trösch, Head of Investor Relations

  2. Slide 2: Today's Program

    Welcome to drupa June 10, 2008 Today‘s Program  2:00 p.m. Beginning of the Conference Presentation Bernhard Schreier, CEO Presentation Dirk Kaliebe, CFO followed by Q´s & A´s  3:30 p.m. Guided Booth Tour (in German + English)  5:45 p.m. get-together © Heidelberger Druckmaschinen AG  7:00 p.m. Di

  3. Slide 3: Agenda

    Welcome to drupa June 10, 2008 Agenda 1. drupa concept 2. Strategic Roadmap and selective innovations 3. Financials and Outlook © Heidelberger Druckmaschinen AG

  4. Slide 4: drupa consequently puts the Heidelberg strategy into action

    drupa concept June 10, 2008 drupa consequently puts the Heidelberg strategy into action Focus on Two exhibition halls: Customers from around the Tap the full potential print solutions and dedicated to packaging world attend one trade show of emerging markets packaging business and commercial solutio

  5. Slide 5: drupa 2008: business development with our customers

    drupa concept June 10, 2008 drupa 2008: business development with our customers © Heidelberger Druckmaschinen AG

  6. Slide 6: drupa concept

    drupa concept June 10, 2008 6 © Heidelberger Druckmaschinen AG

  7. Slide 7: Heidelberg shows Packaging Print Solutions for the first time

    drupa concept June 10, 2008 Heidelberg shows Packaging Print Solutions for the first time © Heidelberger Druckmaschinen AG 7

  8. Slide 8: Agenda

    June 10, 2008 Agenda 1. drupa concept 2. Strategic Roadmap and selective innovations 3. Financials and Outlook © Heidelberger Druckmaschinen AG

  9. Slide 9: Packaging a key driver for print growth

    Strategic Roadmap and selective innovations June 10, 2008 Packaging a key driver for print growth in industrialized and emerging markets Other 11% Mitsubishi 4%  XL 145 and XL 162 address especially the Komori 7% packaging printers KBA 45%  Packaging market shows high growth rates of >5% p.a. MAN

  10. Slide 10: © Heidelberger Druckmaschinen AG

    Strategic Roadmap and selective innovations June 10, 2008 • × × • • • • • © Heidelberger Druckmaschinen AG • × × • •

  11. Slide 11: Heidelberg helps customers optimize all significant expense components

    Strategic Roadmap and selective innovations June 10, 2008 Heidelberg helps its customers to optimize all significant expense components of their income statement AVERAGE COST STRUCTURE FOR THE PRINTING INDUSTRY 40-50% 100 The outstanding production efficiency of 80 Heidelberg presses leads to higher

  12. Slide 12: © Heidelberger Druckmaschinen AG

    Strategic Roadmap and selective innovations June 10, 2008 × × × × © Heidelberger Druckmaschinen AG

  13. Slide 13: © Heidelberger Druckmaschinen AG

    Strategic Roadmap and selective innovations June 10, 2008 × × × × © Heidelberger Druckmaschinen AG

  14. Slide 14: © Heidelberger Druckmaschinen AG

    Strategic Roadmap and selective innovations June 10, 2008 © Heidelberger Druckmaschinen AG • • •

  15. Slide 15: The most comprehensive and performing portfolio ever

    Strategic Roadmap and selective innovations June 10, 2008 The most comprehensive and drupa 2008 performing portfolio ever >70x100 cmxcm sheet size 70x100 drupa 2008 50x70 © Heidelberger Druckmaschinen AG 15 35x50 PM SM/CD XL QM46 GTO „Value Segment“ „Professional Segment“ „Peak Performance“

  16. Slide 16: Heidelberg offers integrated solutions – unique in the industry

    Strategic Roadmap and selective innovations June 10, 2008 Heidelberg offers integrated solutions – unique in the industry Services WORKFLOW-SOFTWARE Prepress Press Postpress © Heidelberger Druckmaschinen AG 16 WORKFLOW-SOFTWARE Services 16

  17. Slide 17: Using the customer base to increase after sales business

    Strategic Roadmap and selective innovations June 10, 2008 Using the customer base to increase after sales business Services Systemservice Spare Parts Supplies Business Optimization / Training Consumables Remote Service: dramatically reduces costs Exclusive use of original Heidelberg One Heidelberg c

  18. Slide 18: Heidelberg acquires high-performance coating manufacturer

    Strategic Roadmap and selective innovations June 10, 2008 Heidelberg acquires high-performance coating manufacturer  The acquisition of Hi Tech accelerates the expansion of the 3-S-Strategy under the brand Saphira  Specialized producer of coatings with excellent margin  Almost every Heidelberg pr

  19. Slide 19: Management Change

    Management Change June 10, 2008 Responsibilities of the Management Board members at Heidelberger Druckmaschinen Valid from July 1, 2008 Dr. Jürgen Rautert Stephan Plenz Bernhard Schreier Dirk Kaliebe Technology & CEO CFO Sales & Service Operations  Corporate Development  Controlling  Sales  Rese

  20. Slide 20: Agenda

    June 10, 2008 Agenda 1. drupa concept 2. Strategic Roadmap and selective innovations 3. Financials and Outlook © Heidelberger Druckmaschinen AG

  21. Slide 21: Key messages

    Financials June 10, 2008 Key messages  No changes to the content of the annual financial statements were made compared to the preliminary figures of May 7, 2008.  Proposed dividend of € 0.95 per share. This corresponds to a payout ratio of 52.5 percent of net profit.  Strong balance sheet structu

  22. Slide 22: Challenges posed by underlying conditions

    Financials June 10, 2008 Challenges posed by underlying conditions © Heidelberger Druckmaschinen AG 1) 1) Excluding Japan 22

  23. Slide 23: Challenges posed by underlying conditions

    Financials June 10, 2008 Challenges posed by underlying conditions Appreciation of the EURO Closing prices of the financial year © Heidelberger Druckmaschinen AG Source: Bloomberg 23

  24. Slide 24: Key figures

    Financials June 10, 2008 Key figures Figures in € millions FY 07 FY 08 Incoming Orders 3,853 3,649 Sales 3,803 3,670 1) Operating profit 302 268 Financial result -62 -69 Income before taxes 240 199 2) Net profit 144 142 Net profit/Sales 3.8% 3.9% © Heidelberger Druckmaschinen AG Free Cash Flow 229 2

  25. Slide 25: Long term sales development and book-to-bill ratio

    Financials June 10, 2008 Long term sales development and book-to-bill ratio Book-to-Bill 1,1 ratio 1,0 1,0 1,0 1,0 Sales 4.000 3,803 €m 3,586 37 3,670 30 3.500 46 445 3,207 427 3,114 398 62 3.000 85 348 359 2.500 2.000 3.321 3.213 1.500 3.142 2.670 2.797 © Heidelberger Druckmaschinen AG 1.000 500 0

  26. Slide 26: P&L overview

    Financials June 10, 2008 P&L overview Figures in € millions FY 07 FY 08 Sales 3,803 3,670 1) Operating profit 302 268 Margin 7.9% 7.3% Financial result -62 -69 Income before taxes 240 199 Taxes on income 96 57 tax quota in % 40.0% 28.6% 2) Net profit 144 142 © Heidelberger Druckmaschinen AG Net prof

  27. Slide 27: Divisional view FY vs. FY

    Financials June 10, 2008 Divisional view FY 07 vs. FY 08 Figures in € millions Sales EBIT FY 07 FY 08 FY 07 FY 08 Press 3,321 3,213 314 239 Postpress 445 427 7 -7 Financial Services 37 30 41 36 Group 3,803 3,670 362 268 1) adjusted for one-time effects 302 Margin 7.9% 7.3% © Heidelberger Druckmaschi

  28. Slide 28: © Heidelberger Druckmaschinen AG

    Financials June 10, 2008 *Financial result within expectations *Tax quota reduced from 40% to 29% *Net profit on the level of the previous year Figures in € millions FY 07 FY 08 Sales 3,803 3,670 1) Operating profit 302 268 Margin 7.9% 7.3% Financial result -62 -69 Income before taxes 240 199 Taxes

  29. Slide 29: Strong Balance Sheet

    Financials June 10, 2008 Strong Balance Sheet: *Equity stable at 1.2 bn Euro *Solid capital structure *Working capital project well on track Balance Sheet Figures in € millions Assets 03/31/2007 03/31/2008 Liabilities 03/31/2007 03/31/2008 Fixed assets 863 932 Shareholders' equity/minorities 1,202 1

  30. Slide 30: Working Capital improved to 32.5% of sales

    Financials June 10, 2008 Working Capital improved to 32.5% of sales Working Capital – 12m-comparison Figures in € millions 03/31/2007 03/31/2008 Inventories 901 974 + Trade receivables 705 596 ./.Trade payables 250 295 ./.Payments on account 80 82 1,276 1,193 © Heidelberger Druckmaschinen AG in % of

  31. Slide 31: Composition of Financial Liabilities

    Financials June 10, 2008 Composition of Financial Liabilities: *Shifting from short term to long term debt Figures in € millions © Heidelberger Druckmaschinen AG Long term Short term 31

  32. Slide 32: Net debt (including provision for pensions)

    Financials June 10, 2008 Net debt (including provision for pensions) Net debt (including provision for pensions) Figures in € millions 31-Mar-2007 30-Sep-2007 31-Mar-2008 Convertible bond 287 291 295 Liabilities to banks and private placement 222 410 220 Provision for pensions 133 117 116 - Cash and

  33. Slide 33: Cash Flow Statement

    Financials June 10, 2008 Cash Flow Statement FY 2007/2008 €m 450 400 350 127 202 300 250 200 thereof: © Heidelberger Druckmaschinen AG 150 290 100 215 Dividend 75 payment 50 57 Share buyback 0 Cash f low Other operating changes Investments Free Cash Flow Cash outf low f rom f inancing activity 33

  34. Slide 34: Cash Flow Statement

    Financials June 10, 2008 Cash Flow Statement Figures in € millions FY07 FY08 1) Net profit 190 142 Cash flow 325 290 - thereof depreciation and amortization 130 124 Other operating changes 0 127 - thereof inventories -60 -92 - thereof changes in trade receivables/trade payables -51 118 - thereof cha

  35. Slide 35: Share price development and dividend proposal

    Financials June 10, 2008 *Share price development FY 2007/2008 *Dividend proposal of 0.95 € per share Quarterly low, high, and closing prices Figures in € per share Dividend Figures in € per share © Heidelberger Druckmaschinen AG 35

  36. Slide 36: Outlook

    Outlook June 10, 2008 Outlook In early August, we will publish a sales forecast for financial year 2008/2009 together with the first quarter’s figures. By then we will be in a better position to foresee what impulses for our business have originated from drupa. Already today, however, we expect the

  37. Slide 37: Financial Calendar

    Outlook June 10, 2008 Financial Calendar Financial Calendar Event Date drupa trade fair May 29 - June 11, 2008 Annual Analysts' and Investors' conference June 10, 2008 Annual General Meeting July 18, 2008 Release of the figures for Q1 FY08 August 5, 2008 Release of the figures for Q2 FY08 November 6

  38. Slide 38: © Heidelberger Druckmaschinen AG

    June 10, 2008 © Heidelberger Druckmaschinen AG

  39. Slide 39: Investor Relations

    June 10, 2008 Investor Relations Andreas Trösch Head of Investor Relations + 49 (0) 6221 92-6020 + 49 (0) 6221 92-5189(Fax) andreas.troesch@heidelberg.com Heidelberger Druckmaschinen AG Kurfuersten-Anlage 52-60 69115 Heidelberg Germany For more detailed information on Heidelberg please refer to our

  40. Slide 40: Disclaimer

    June 10, 2008 Disclaimer Any forward-looking statements contained in this presentation represent our best judgment as to what will occur in the future. The Company's actual results could differ materially from those presented and will depend on a number of competitive and economic factors, some of w

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