Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — FY2017/18 Earnings Presentation

29 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 12, 2018

  1. Slide 1: Data drive future growth

    Data drive future growth ANALYSTS‘ AND INVESTORS‘ CONFERENCE Rainer Hundsdörfer (CEO) | Dirk Kaliebe (CFO), Frankfurt | June 12, 2018 Digital Heidelberg im Gepäck. goes digital. Rundungen können in Einzelfällen dazu führen, dass in dieser Präsentation Werte sich nicht exakt zur angegebenen Summe auf

  2. Slide 2: Strategy, Financial figures, Outlook, Summary

    1. Strategy 2. Financial figures Outlook 3. Summary © Heidelberger Druckmaschinen AG 2

  3. Slide 3: Digital transformation in progress

    Digital transformation in progress Operational targets 17/18 achieved Mid term targets 2022 confirmed 500 m € additional turnover (recurring business) Transformation at all levels: • technology • organization • culture © Heidelberger Druckmaschinen AG 3

  4. Slide 4: Data as fuel for growth

    Data as fuel for growth 11,000 Heidelberg machines connected 25,000 Software modules are generating … 10.2 bn data sets per machine The Heidelberg Cloud: 400 Push-to-Stop Unique data treasure as basis for new systems sold business models © Heidelberger Druckmaschinen AG 4

  5. Slide 5: Technology leadership in digital printing expanded

    Technology leadership in digital printing expanded 200 m € sales potential Growth target of 200 m € in sales in industrial digital packaging printing confirmed Primefire • serial production has started • First machines already installed • Approx. 2/3 of needed installed base booked by customers • On

  6. Slide 6: Technology leadership leads in medium term to rising profitability

    Technology leadership leads in medium term to rising profitability 200 m € sales potential The ink is the gold of digital printing Revenue service & ink • Approx. 10 % of target revenue will be generated in FY 19. • After 4 to 5 years the installed base will generate more revenue with ink Installed

  7. Slide 7: Digital transformation: Heidelberg revolutionizes the industry

    Digital transformation: Heidelberg revolutionizes the industry 250 m € sales potential Pay-per-use model is successful! • 17 subscription contracts already signed • 600 potential customers identified • targets: • 30 contracts until end of FY 18/19 • Sales potential ~150 m € over 5 years © Heidelberg

  8. Slide 8: Digital transformation has high earnings potential

    Digital transformation has high earnings potential 250 m € sales potential Subscription involves above-average profitability sales/ # contracts • Strong sales lever through higher sales of consumables ~250 • Market share of consumables and purchasing power will be expanded ~100 ~30 • Average recurri

  9. Slide 9: Digital transformation also leads to growth outside the printing industry

    Digital transformation also leads to growth outside the printing industry 50 m € sales potential 50 m € sales through utilization of already existing technologies: • Offering of new digital platforms • Integration of innovative DOCUFY software products • Entry into the megatrend e-mobility © Heidelb

  10. Slide 10: Cultural change continues: R&D moves into the factory

    Cultural change continues: R&D moves into the factory • communicative • innovative • agile © Heidelberger Druckmaschinen AG 10

  11. Slide 11: Cultural change: we create room for creativity and entrepreneurship

    Cultural change: we create room for creativity and entrepreneurship flexible networking regional connection & offices & communication attractive environment © Heidelberger Druckmaschinen AG 11

  12. Slide 12: Cultural change: external Internet expertise completes our product know-how

    Cultural change: external Internet expertise completes our product know-how possibilities Competence center for digital marketing & e-commerce Triplication of sales planned © Heidelberger Druckmaschinen AG 12

  13. Slide 13: Strategy, Financial figures, Outlook, Summary

    1. Strategy 2. Financial figures Outlook 3. Summary © Heidelberger Druckmaschinen AG 13

  14. Slide 14: Targets achieved. Third year with positive net result after taxes.

    Targets achieved. Third year with positive net result after taxes. FY 16/17 FY 17/18 Δ pY Order intake 2,593 2,588 Sales 2,524 2,420 -4% EBITDA w/o restructuring result 179 172 -7 EBIT w/o restructuring result 108 103 -5 Restructuring result -18 -16 Financial result -56 -48 -8 Earnings before taxes

  15. Slide 15: Balance sheet: Stable capital structure and efficient use of capital

    Balance sheet: Stable capital structure and efficient use of capital > Assets FY 2017 FY 2018 > Equity and liabilities FY 2017 FY 2018 31-03-2017 31-03-2018 31-03-2017 31-03-2018 Fi gures i n mEUR Fi gures i n mEUR Fixed assets 741 810 Equity 340 341 Current assets 1.365 1.367 Provisions 898 878 the

  16. Slide 16: From restructuring to growth financing

    From restructuring to growth financing Financial instruments Maturity profile per calendar year €m 757 7 • Financing of future growth secured in the long term • Scope for premature redemption of part of the existing 8% High Yield Bond 320 • Interest costs are to be reduced to approx. € 20 million an

  17. Slide 17: Operational Excellence: on track – cultural change & sustainable reduction of structural cost

    Operational Excellence: on track – cultural change & sustainable reduction of structural cost 50 m€ efficiency potential Improve competitiveness Relocation of R&D – Agile Production agile development Optimize site concept bei Platform concepts and complexity reduction 3 New tariff models Targeted st

  18. Slide 18: Operational Excellence: Overall economic concept implemented

    Operational Excellence: Overall economic concept implemented Culture change: sale HQ and move Wiesloch-Walldorf headquarters showroom (1000 FTE) from Heidelberg to Wiesloch Operational Excellence • WLC & PMA as buyback • Conversion of the innovation center and relocation / utilization FEZ (further 1

  19. Slide 19: Operational Excellence: Unique innovation center for 1000 employees

    Operational Excellence: Unique innovation center for 1000 employees All below one roof The new Innovation Center is designed for communication, for official meetings as well as for personal exchanges or informal networking. © Heidelberger Druckmaschinen AG 19

  20. Slide 20: Operational Excellence: New leadership organization implemented

    Operational Excellence: New leadership organization implemented The new management organization is leaner, more efficient and customer- oriented: • Segment-specific offers and global sales and service coordination • Reduction of management levels with reduced number of interfaces • Global G & A func

  21. Slide 21: Outlook Financial Year 18/19: Positive effects of new strategy are becoming increasingly visible

    Outlook Financial Year 18/19: Positive effects of new strategy are becoming increasingly visible • Series production Digital machines • High collective agreement will have a positive impact on sales Burden on personnel costs due to tariff and working development hours increase • Digital business mod

  22. Slide 22: Strategy, Financial figures, Outlook, Summary

    1. Strategy 2. Financial figures Outlook 3. Summary © Heidelberger Druckmaschinen AG 22

  23. Slide 23: Sights still set on medium-term targets

    Sights still set on medium-term targets + € 200m sales + € 300m sales + € 50m efficiency Group targets until 2022: • Sales volume of up to € 3bn • EBITDA between € 250 – 300m • Net result > € 100m © Heidelberger Druckmaschinen AG 23

  24. Slide 24: Backup

    Backup © Heidelberger Druckmaschinen AG 24

  25. Slide 25: Restatement of figures. New segment structure reflects new leadership organization.

    Restatement of figures. New segment structure reflects new leadership organization. RESTATED Net sales FY 2018 FY 2018 until starting Figures in mEUR 31-03-2018 01-04-2018 ACT ACT until 31-03-2018 starting 01-04-2018 2.420 2.420 Digital Technology (HDT) Digital Technology (HDT) 1.316 1.465 BU Sheetf

  26. Slide 26: Sales and EBITDA by segment in FY2017/18

    Sales and EBITDA by segment in FY2017/18 Umsatz nach Segment EBITDA* nach Segment € million € million 3000 200 179 172 2.524 6 2.420 3 70 75 2000 1.367 1.315 *EBITDA excl. restr. result 270 (43%) 100 103 Heidelberg Digital Technology 94 1000 Heidelberg Digital Business & Services 1.152 1.101 HD Fina

  27. Slide 27: Order intake by region in FY 17/18

    Order intake by region in FY 17/18 Order intake in FY 2017/18 (FY 2016/17) mn € South America 3.1% North America (2.8%) 16.4% (17.0%) EMEA 44.5% (43.5%) € 2,588m (€ 2,593m) 25.9% (25.7%) Asia/Pacific 10.1% (11.0%) Eastern Europe © Heidelberger Druckmaschinen AG 27

  28. Slide 28: Key figures Q4 FY 17/18

    Key figures Q4 FY 17/18 Q4 16/17 Q4 17/18 Order intake 604 676 Sales 845 763 EBITDA 85 67 w/o restructuring result EBIT w/o restructuring result 65 50 Restructuring result -10 -15 Financial result -14 -12 Earnings before taxes 42 22 Earnings after taxes 46 24 Free Cash flow 35 12 03/31/17 03/31/18 E

  29. Slide 29: 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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