Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — Q1 FY2019/2020 Earnings Presentation

17 slides from Heidelberger Druckmaschinen's earnings presentation, Aug 6, 2019

1. Slide 1: Heidelberg goes digital!

   Heidelberg goes digital! Heidelberger Druckmaschinen AG | First Quarter Results FY 2019/2020 Rainer Hundsdörfer (CEO) | Dirk Kaliebe (CFO), Wiesloch | August 6, 2019

2. Slide 2: First Quarter FY 2019/2020

   First Quarter FY 2019/2020. Good order intake at the beginning of Q2. • Demand for contract and subscription offerings continues to develop positively - Expansion of the share of recurring revenues. • First quarter marked by cyclical reluctance to invest. • Seasonal increase in net working capital w

3. Slide 3: Modular access to the subscription model

   Modular access to the subscription model. Significant expansion of contract business. • Customer demand remains good. Recurring revenues, incl. subscription contracts and digital business, were up by ~10% to approx. € 80m. • In the medium term, recurring revenue – mainly from contract and subscripti

4. Slide 4: China – ongoing growth

   First Quarter FY 2019/2020. China – ongoing growth. • China: largest single market for our industry. • Good demand at Print China, order intake +45 % yoy. • Market share growth in China to >45 %. • High factory load in China causes temporary high NWC. Number of sold printing units in China +25% yoy.

5. Slide 5: Measures taken to improve earnings and liquidity

   First Quarter FY 2019/2020. Measures taken to improve earnings and liquidity. Liquidity potential: • Investments ~ € 20m • NWC ~ € 50m • Portfolio optimization ~ € 30m ~ € 100m © Heidelberger Druckmaschinen AG 5

6. Slide 6: Key Figures Q1 FY 2019/2020

   Key Figures Q1 FY 2019/2020. 1st time IFRS 16* • Despite considerably higher demand in China order intake reflects FY 18/19* FY 19/20 Δ pY investment postponements due to worsened economic conditions in WE; Order backlog increased slightly (FYE19: € 654m) to € 730m. Order intake 665 615 -50 • Sales

7. Slide 7: Sales and EBITDA by segment in Q1 19/20

   Key Financial Highlights. Sales and EBITDA by segment in Q1 19/20. Sales by segment EBITDA* by segment • Heidelberg Digital Technology: € Mio. € Mio. Sales have been restraint due to the worsened economic 600 30 541 1 502 conditions. Lower sales, a less favorable product mix, and 20 655 14 1 655 1 6

8. Slide 8: Decrease in equity due to decline of discount rate

   Key Financial Highlights. Decrease in equity due to decline of discount rate for domestic pensions. > Assets FY 2019 FY 2019 FY 2020 > Equity and liabilities FY 2019 FY 2019 FY 2020 Figures in mEUR 30-06-2018 31-03-2019 30-06-2019 30-06-2018 31-03-2019 30-06-2019 Figures in mEUR Fixed assets 824 846

9. Slide 9: Net Working Capital

   Net Working Capital. NWC and FCF program launched for active cash management. 800 40 • Net working capital sustainably reduced to 714 691 below 30 percent of sales. 667 684 610 600 30 • Temporary increase of NWC (Q1 € 710m) for higher sales volume in HY2. Ramp-up of digital business and higher volum

10. Slide 10: Our financial framework as of June 30, 2019

    Our financial framework as of June, 30 2019. Stable financial framework and sufficient liquidity resources (incl. IFRS 16). Financing instruments Maturities per calendar year €m Other 712 RCF 32 REL (5%) EIB HYB CB Net debt 320 (45%) 55* 51 0 (7%) 270 100 27 (14%) 9 25 337 320 Other | amortizing 150

11. Slide 11: Outlook Financial Year 19/20

    Outlook Financial Year 19/20. • Sales on previous years‘ level • EBITDA-Margin w/o restructuring result between 6.5 – 7 % (including IFRS 16 adjustments) • Balanced Net result © Heidelberger Druckmaschinen AG 11

12. Slide 12: Backup

    Backup © Heidelberger Druckmaschinen AG 12

13. Slide 13: IFRS 16

    IFRS 16. Significant effects of the first time application for Heidelberg. What is IFRS 16? • On-balance accounting for all lease contracts with the lessee • Balance sheet extension due to additional lease assets and lease liabilities (around € 52 m) Significant effects of the • Increase in EBITDA e

14. Slide 14: Free cash flow

    Free cash flow. Investments in the digital future of Heidelberg. Q1 18/19 Q1 19/20 Δ pY Net result after taxes -15 -31 -16 1 (1) Cash flow slightly negative Cash flow 3 -4 -7 (2) Net Working Capital rose due to the expected rise Other operating changes -35 -62 -27 in deliveries and sales in the 2nd

15. Slide 15: Order intake – regional split

    Order intake – regional split. Strong China and weakening EMEA. Regional order intake Q1 2019/20 (Q1 2018/19) South America North America 2.7% (3.6%) EMEA 16.5% (14.1%) 36.3% € 615m (46.2%) (€ 665m) 33.0% (25.1%) Asia/Pacific 11.5% (11.0%) Eastern Europe © Heidelberger Druckmaschinen AG 15

16. Slide 16: Financial calendar 2019/2020

    Financial calendar 2019/2020. November 6, 2019 Publication of Half-Year Figures 2019 / 2020 February 11, 2020 Publication of Third Quarter Figures 2019/ 2020 June 9, 2020 Press Conference, Annual Analysts’ and Investors’ Conference July 23, 2020 Annual General Meeting Subject to change © Heidelberge

17. 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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