Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — FY2015/2016 Earnings Presentation

61 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 8, 2016

  1. Slide 1: Investors' and Analysts' Annual Conference FY 2015/2016

    Heidelberger Druckmaschinen AG INVESTORS' AND ANALYSTS' ANNUAL CONFERENCE FY 2015/2016 June 8, 2016

  2. Slide 2: Agenda

    Agenda 1. Strategy Dr. Gerold Linzbach 2. Financials & Outlook Dirk Kaliebe 3. Equipment Stephan Plenz 4. Services Harald Weimer © Heidelberger Druckmaschinen AG 2

  3. Slide 3: Back to profitability

    Back to profitability.  Strategic focus on growth areas  Growth targets defined − Expansion with Digital and Services  Solid financing structure − Successful integration of acquired allows future growth PSG-Group − Services revenue grows to almost 50% of group sales − Driving force behind industr

  4. Slide 4: On the right track

    On the right track. Structure Re-Branding optimization  Capacity re-dimensioning Cultural Values  General cost reduction  Site consolidation (HQ, R&D, Leipzig, Neuss, Nove Mesto) Customer focus  Simply Smart  Digitization Portfolio  Business Innovation optimization  Operational Excellence  S

  5. Slide 5: Cultural change: critical success factor

    Critical success factor. Our cultural change towards a strictly customer-oriented company.  Meet (individual) customer requirements  Smart Products/ Cultural Services change Listen Inspire (more than machines & digitization) Deliver (Only the results count) © Heidelberger Druckmaschinen AG 5

  6. Slide 6: Another way to phrase customers' needs in the future

    Another way to phrase customers‘ needs in the future: Digitized world / Industry 4.0 Digitization means to integrate smartness into products and processes. It doesn‘t mean to equip machines with sensors and to wire them. Target is to free the user‘s mind from standard operation of his equipment. © H

  7. Slide 7: Our cars are also getting smarter

    Our cars are also getting smarter. Target: autonomous driving. © Heidelberger Druckmaschinen AG 7

  8. Slide 8: drupa 2016: New Heidelberg

    drupa 2016: New Heidelberg. Ready for a digitized world. © Heidelberger Druckmaschinen AG 8

  9. Slide 9: Agenda

    Agenda 1. Strategy Dr. Gerold Linzbach 2. Financials & Outlook Dirk Kaliebe 3. Equipment Stephan Plenz 4. Services Harald Weimer © Heidelberger Druckmaschinen AG 9

  10. Slide 10: Successful strategic reorientation. Targets met

    Successful strategic reorientation. Targets met. Guidance FY 15/16 Result FY 15/16  Growth 2 -4%  + 7.6%  FX adj. +4%  EBITDA-Margin > 8%  EBITDA-Margin ~ 8%  Net profit  Net profit € 28m  Leverage at 1.5  Leverage <2  Solid financing structure with rolling maturities until CY 2023  Reduc

  11. Slide 11: FY 2015/2016: Key Figures

    FY 2015/2016: Key Figures. Back to profitability. in € million FY 2015 FY 2016 Δ pY ● Sales up around 8% on previous year; around Order intake 2,434 2,492 +2.4% 4% after adjusting for exchange rate effects Sales 2,334 2,512 +7.6% EBITDA 138 (188) 189 1 ● EBITDA was on par yoy, incl. PSG badwill (€ E

  12. Slide 12: FY 2015/2016: Market stabilization

    FY 2015/2016: Market stabilization. Strong EMEA and North America compensate weaknesses in China and Brazil. Sales Order intake FY 2016 (FY 2015) in € million 3,000 South America 3.4% North America (4.4%) 17.6% 2,000 (16.0%) EMEA 42.5% (39.2%) € 2,492m (€ 2,434m) 1,000 26.7% (28.3%) Asia/Pacific 9.8

  13. Slide 13: Segments: Target profitability in HDS and HDE achieved

    Segments: Target profitability in HDS and HDE achieved. Sales by segment EBITDA by segment comment ● Higher sales volume in both € million € million segments; Especially North 3,000 € +178m America and Asia with higher 2,512 2,334 6 € +1m 189 sales contribution 7 188* 2 200 6 ● HD Equipment suffers

  14. Slide 14: FY 2015/2016: Balance sheet

    FY 2015/2016: Balance sheet. NWC further reduced – equity ratio 13% – net debt on low level. > Assets FY 2015 FY 2016 > Equity and liabilities FY 2015 FY 2016 31-03-2015 31-03-2016 31-03-2015 31-03-2016 Figures in mEUR Figures in mEUR Fixed assets 735 724 Equity 183 287 Current assets 1.465 1.371 Pr

  15. Slide 15: Financial framework further optimized

    FY 2015/2016: Financial framework further optimized. Interest costs lowered. Financial framework Maturity profile Other instruments | amortizing Total framework Convertible bond (July 2017) of around € 700m Convertible bond (March 2022)* Syndicated credit line (June 2019)** Corporate bond Corporate

  16. Slide 16: M&A-financing

    M&A-financing. Excellently positioned for the planned growth.  Integration of PSG-Group successfully completed − Growth area service and consumables − Attractive purchase price − Sales contribution approx. € 125m  BluePrint Products expands consumables portfolio  Complete takeover of Gallus Holdi

  17. Slide 17: Strengthening of the business model

    Outlook. Strengthening of the business model. Services >50% trad. Equipment ~1/3 Digital 10-20% Past Today Services Equipment Digital Future © Heidelberger Druckmaschinen AG 17

  18. Slide 18: New Heidelberg

    „New Heidelberg“. Foundation laid for sustainable profitability.  Solid sales  Sustainably growth to mid- high term ~ € 3bn profitability: EBITDA- margin 7-10%  Increasing net profitability / earnings per share  Stable financial framework and healthy leverage level © Heidelberger Druckmaschinen

  19. Slide 19: Outlook: Targets set

    Outlook. Targets set. Outlook FY 2015/16 FY 2016/17 Mid-term target € 2,512m up to 4% up to 4 % p.a./ (€ 2,426m) target ~ € 3bn 7.8 % on previous year‘s level Bandwidth HDE ~ 5% HDE 4-6% 7% - 10% HDS ~11% HDS 9-11% € 28m moderate increase further increase 1,5 below 2 below 2 © Heidelberger Druckmasc

  20. Slide 20: Agenda

    Agenda 1. Strategy Dr. Gerold Linzbach 2. Financials & Outlook Dirk Kaliebe 3. Equipment Stephan Plenz 4. Services Harald Weimer © Heidelberger Druckmaschinen AG 20

  21. Slide 21: €400 billion/year

    Stable market worth billions with attractive growth areas Consumables €8 billion** Services Global print production volume around €1.3 billion** Sheetfed offset €400 billion/year €2.4 billion* Digital €2.5 billion** * Accessible market for Heidelberger Druckmaschinen, excluding postpress © Heidelber

  22. Slide 22: €400 billion/year

    Stable market worth billions with attractive growth areas Global print Around production volume €400 billion/year FOCUSED ON THE RIGHT CUSTOMERS … towards 15,000 industrial enterprises From 200,000 small handcrafters… © Heidelberger Druckmaschinen AG 22

  23. Slide 23: Smart Print Shop

    Smart Print Shop. Integration is key. Customer © Heidelberger Druckmaschinen AG 23

  24. Slide 24: Daily challenges of our customers

    Daily challenges of our customers. Business innovation and operational excellence. Business Innovation Operational Excellence  New business models  Existing services  New applications  High automation and net  New customers output  New products  Integration and process automation  New servic

  25. Slide 25: The new Heidelberg digital portfolio

    Business innovation: The new Heidelberg digital portfolio. The “fire” products. Primefire Prinect DFE Versafire Omnifire Labelfire © Heidelberger Druckmaschinen AG 25

  26. Slide 26: 4D printing – Heidelberg Omnifire

    4D printing – the new dimension in print. Heidelberg Omnifire. Omnifire 250 Omnifire 1000 Omnifire XL © Heidelberger Druckmaschinen AG 26

  27. Slide 27: Heidelberg Versafire

    Customer demand for variable digital printing. Heidelberg Versafire. High versatility and high performance  Integration into production workflow  Easy user interface  Low click price © Heidelberger Druckmaschinen AG 27

  28. Slide 28: Gallus Labelfire 340

    Customer demand for short-run label printing. Gallus Labelfire 340. The new benchmark in digital converting – highest quality in a single pass  Individual designs  Marketing campaigns  Regionalization  Personalization © Heidelberger Druckmaschinen AG 28

  29. Slide 29: Launch of Primefire 106

    Heidelberg world premiere. Launch of Primefire 106. The new Heidelberg Primefire 106 powered by Fujifilm inkjet technology offers  Reliable industrial digital production in B1 size  High flexibility for packaging and commercial printing to meet the needs of today’s brands  Individualized and pers

  30. Slide 30: Digital Business Model

    Digital Business Model. Main profit contribution results from recurring revenue (Inks and Services). Primefire Proprietary Ink & Service Versafire Omnifire Click Charge Model Click Charge Model Labelfire Proprietary Ink & Service © Heidelberger Druckmaschinen AG 30

  31. Slide 31: Digital print is growing

    Digital print is growing. Highest growth in Digital Packaging. Development of the global Digital Print Production Volume by segments (PPV in bn. €) +7,5% 83 +8,3% 22 62 +5,1% p.a. 53 9 Packaging +7,4% 18 +17,2% • Folding Carton p.a. 16 p.a. • Labels 5 • Flexibles +19,6% 3 p.a. Commercial 52 +7,3% •

  32. Slide 32: Operational excellence

    Operational excellence. The requirements have changed. New way of thinking required. OEE 100% Reduced average production speed Maintenance and technical availability 90% Minimum 2 min make-ready per job 85% 10 jobs per day 60% Performance High net speed 10 jobs per shift border Automated fast 50% Ma

  33. Slide 33: Operational excellence: Push to Stop

    Operational excellence. We have to change our mindset. Paradigm change: Process runs autonomously. We only interrupt if necessary. Push to Stop © Heidelberger Druckmaschinen AG 33

  34. Slide 34: Operational excellence – for packaging printers

    Operational excellence – for packaging printers. Unique navigation functionality. New Intellistart 2 with Intelliguide  Calculates the fastest makeready strategy  Guides the operator through the individual steps on the press © Heidelberger Druckmaschinen AG 34

  35. Slide 35: Operational excellence – for commercial printers

    Operational excellence – for commercial printers. Unique autonomous printing functionality. New Intellistart 2 with Quality Assist  Executes autonomously the fastest makeready strategy  Operator-independent and predictable © Heidelberger Druckmaschinen AG 35

  36. Slide 36: New Speedmaster XL

    Operational excellence. New Speedmaster XL 106 – peak performance redefined. Industrial print production at revolutionary performance level  Cyber-physical system fully integrated into digital workflow  Outstanding automation with new simultaneous makeready functions  Unique Intellistart 2 enable

  37. Slide 37: Smart Print Shop

    Smart Print Shop. Heidelberg integrates Digital and Offset. Offset & Digital Offset & Digital Offset & Digital Offset & Digital Prinect WEB MIS PREPRESS PRESS POSTPRESS Value Chain Media Production Payment @ and Shipping Customer © Heidelberger Druckmaschinen AG 37

  38. Slide 38: Technology leader in growing packaging market

    Technology leader in growing packaging market. Packaging volume 2014: € 116 bn Print technology Labels Flexible packaging Others Sheetfed 19% 24% 47% 44% Digital 3% 51% 45% Folding boxes Flexo Source: Heidelberg Estimates– July 2015, Industry statistics, PIRA, RISI, PRIMIR, Global Insight Base Year

  39. Slide 39: Packaging is growing

    Packaging is growing. Highest growth in Digital Packaging. Development of the global Print Production Volume by segments (PPV in bn. €) +3,3% 141 +3,3% 124 116 Heidelbergs Target section +2,3% 80 p.a. Packaging +2,5% 73 • Folding Carton 69 p.a. • Labels • Flexibles +17,2% 9 3 +19,6% 5 p.a. p.a. 47 +

  40. Slide 40: Agenda

    Agenda 1. Strategy Dr. Gerold Linzbach 2. Financials & Outlook Dirk Kaliebe 3. Equipment Stephan Plenz 4. Services Harald Weimer © Heidelberger Druckmaschinen AG 40

  41. Slide 41: €400 billion/year

    Stable market worth billions with attractive growth areas Consumables €8 billion** Services Global print production volume around €1.3 billion** Sheetfed offset €400 billion/year €2.4 billion* Digital €2.5 billion** * Accessible market for Heidelberger Druckmaschinen, excluding postpress © Heidelber

  42. Slide 42: Growth potential Consumables: Market Size and Segments

    Growth potential Consumables: Market Size and Segments 8,0 4,7 Chemicals 1,1 Press 4,7 Coatings 0,9 Search for attractive target companies for acquisition Agreement with Colours 2,7 manufacturers Pre-Press 2,7 on exclusivity Other 0,6 CY 2013, € billion © Heidelberger Druckmaschinen AG 42

  43. Slide 43: New Heidelberg eShop

    New Heidelberg eShop. 24/7 supply for your print shop with modern user interface. http://www.shop.heidelberg.com/consumables/prepress/plates/aqueous_coating Personalized access for registered customers Exclusive prices Quantity Discounts Free delivery In-depth product information Safety sheets and a

  44. Slide 44: Heidelberg eShop

    Heidelberg eShop. Leverage today’s strong position to redefine eCommerce for the PMI supply. Today: 24x7 access for registered customers to broad consumables portfolio including Heidelberg Saphira brand to… 80,000 orders per year Next steps: 27 in countries  Open shop without registration incl. cre

  45. Slide 45: Autonomous printing

    Autonomous printing. Fully automated plate production. Industrial scale production:  Seamless integration in Prinect  No operator needed  Remote Service connection, lower service-cost

  46. Slide 46: €400 billion/year

    Stable market worth billions with attractive growth areas Consumables €8 billion** Services Global print production volume around €1.3 billion** Sheetfed offset €400 billion/year €2.4 billion* Digital €2.5 billion** * Accessible market for Heidelberger Druckmaschinen, excluding postpress © Heidelber

  47. Slide 47: Heidelberg SystemService

    Heidelberg SystemService. The answer to customers’ service needs. Our customers want … • Maximum availability and productivity • Minimized and known service costs • Optimum quality • High resale value Our assets are … • Largest service network in the print media industry: • 3,000 Systemservice exper

  48. Slide 48: Heidelberg SystemService

    Heidelberg SystemService. A comprehensive portfolio for greater performance. Technical Services Performance Services Service Agreements Installation Relocation Evaluation Color Management On-Demand One-Time Service Maintenance Cleaning Training Upgrades Point-of-Sales Agreements For new equipment He

  49. Slide 49: Predictive Monitoring

    Predictive Monitoring. Unique in the printing industry. With the most advanced built-in Remote Service technology and the state-of-the- art Big Data analytics platform we are able to offer with Remote Monitoring a predictive service to provide highest machine uptime: • Predictable production schedul

  50. Slide 50: Predictive Monitoring

    Predictive Monitoring. Higher uptime thanks to predictive service. Print Shop Heidelberg Service Internet ! Capture Analyze Fulfill Report Continuous data System algorithms Expert creates Transparency: collection detect irregularities and intelligent task list and • monthly data review (~ 500 millio

  51. Slide 51: Performance Plus

    Performance Plus. A new approach to boost customers’ performance. Heidelberg has developed a unique service to unleash customers full potential. Performance Plus is not just for one machine or system but for the entire print shop – a new, integrated approach where we don’t just advise customers but

  52. Slide 52: Performance Plus

    Performance Plus. Implementation & structure. Sustainability Performance Evaluate Design Implement Sustain • Data • Find Potential • Value Stream • Target Setting • Observations • Calculate Map • KPIs • Audits • Evaluations • Project Plan • Classroom • Tracking • Continuous • Determine Training Prog

  53. Slide 53: The Heidelberg Cloud

    There is one more thing. There are… There is… There are… more than 10.000 machines and Big Data combined with central more than 3.000 technicians 15.000 Prinect modules connected analytical and predictive logic to providing these services today provide the base for Heidelberg’s • Performance Benchma

  54. Slide 54: Heidelberg Assistant

    And now we open it for our customers. Personal access for Heidelberg customers Heidelberg Assistant • Expert know-how on your fingertip • Transparency about availability and performance of your print shop © Heidelberger Druckmaschinen AG 54

  55. Slide 55: The Heidelberg Assistant

    The Heidelberg Assistant. © Heidelberger Druckmaschinen AG 55

  56. Slide 56: Heidelberg Assistant will enhance the eShop

    Heidelberg Assistant will enhance the eShop with further functionalities Shopping = eShop Smart shopping powered by Heidelberg Cloud: • Offer only fitting products for printer as search results • Predict optimal order size based on consumption of machines • Notify customer, if reorder is due conside

  57. Slide 57: Heidelberg Assistant

    Heidelberg Assistant. Service and support at your fingertip. Overview Service and Support powered by Heidelberg Cloud: • Access to expert know-how • Create and track service requests online • Notification about maintenance dates • Suggestions for predictive maintenance actions • Recommendations for

  58. Slide 58: To summarize…

    To summarize… © Heidelberger Druckmaschinen AG 58

  59. Slide 59: New Heidelberg

    New Heidelberg. Successful strategic reorientation.  Strong brand  Broadest installed base worldwide  Successful turnaround  50% of sales from services reduce earnings volatility  Mid-term topline growth from € 2.5bn to € 3bn  Growth with Digital, Service and Packaging  EBITDA-margin 7 - 10 %

  60. Slide 60: Heidelberger Druckmaschinen AG

    Heidelberger Druckmaschinen AG INVESTORS' AND ANALYSTS' ANNUAL CONFERENCE FY 2015/2016 June 8, 2016

  61. Slide 61: Important note

    Important note 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 d

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