Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — Q2 FY2020/2021 Earnings Presentation

25 slides from Heidelberger Druckmaschinen's earnings presentation, Nov 10, 2020

  1. Slide 1: Second Quarter Results FY 2020/2021

    Our goals: Profitability – Competitiveness – Safeguarding the future Heidelberger Druckmaschinen AG –Second Quarter Results FY 2020/2021 Rainer Hundsdörfer, CEO | Marcus A. Wassenberg, CFO | Wiesloch, November 10, 2020

  2. Slide 2: Heidelberg. In a nutshell.

    Heidelberg. In a nutshell. 1. Half-year-figures FY 20/21 We get stable through the COVID 19 environment – with positive EBITDA. 2. Transformation program Our transformation delivers – we are fully on schedule. 3. Market environment / We are expanding our potential in core business our strong core bu

  3. Slide 3: Half-year-figures FY 20/21. Implemented with consistency and speed.

    Half-year-figures FY 20/21. Implemented with consistency and speed. 15 May 2020 End of July 2020 01 October 2020 19-23 October 2020 Reconciliation of interests Selling of Gallus / Closing will First transfer company in Digital Innovation Week: and social plan for German be in 2020. Germany (next in

  4. Slide 4: Successful implementation of the transformation

    Half-year-figures FY 20/21. Successful implementation of the transformation. €m 6m 19/20 6m 20/21 Δ PY • Incoming orders down by ~ 32 % yoy due to pandemic – considerable signs of recovery in Q2, especially in new machinery business. Incoming orders 1,263 864 -32% Order backlog in Q2 increased to €

  5. Slide 5: Net debt on low level – equity ratio burdened by interest rates

    Half-year-figures FY 20/21. Net debt on low level – equity ratio burdened by interest rates. > Assets FY 2020 FY 2020 FY 2021 > Equity and liabilities FY 2020 FY 2020 FY 2021 Figures in mEUR 30-09-2019 31-03-2020 30-09-2020 Figures in mEUR 30-09-2019 31-03-2020 30-09-2020 3 Fixed assets 896 953 914

  6. Slide 6: Market with visible recovery – steady upward trend in incoming orders

    Half-year-figures FY 20/21. Market with visible recovery – steady upward trend in incoming orders. // Order intake (per quarter) // Order intake (per month) in FY 20/21 +85% Q1 20/21 346 - 44% Higher order intake in September compared to May of FY20/21 Q1 19/20 614 192 +50% 167 159 133 Q2 20/21 518

  7. Slide 7: Program has delivered – significant effects to the 6m result

    Half-year-figures FY 20/21. Program has delivered – significant effects to the 6m result FY 20/21. // Main factors impacting earnings: // EBITDA excl. restructuring result • Volume and margin (approx. € 160m) (-) € m 100 97 • (+) Savings from Transformation program +41% (approx. € 45m) 69 • (+) Shor

  8. Slide 8: Transformation program: fully on schedule

    Transformation program. Fully on schedule with our measures & already with a sustainable impact. ~ € 170m* ~ € 140m* ~ € 140m Program objective 106 Personnel costs Due to already realized costs ~ € 80m* savings, required sales for Personnel costs EBIT break-even will significantly decrease to 51 ~ €

  9. Slide 9: Headcount reduction scheduled until FY 22/23

    Transformation program. Headcount reduction scheduled until FY 22/23. // Personnel measures Staff reductions already implemented; FTE cumulated by quarter of implementation (status Oct. 2020) € 120m* € 95m* € 35m* 1,660 1,517 1,382 1,446 1,298 1,151 1,216 1,094 978 567 377 167 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

  10. Slide 10: Next important step on financial stabilization concluded

    Transformation program. Next important step on financial stabilization concluded. // Main factors: // Maturity profile as of Sept. 30, 2020 €m • Early repayment of the HYB (€ 150m) 2 concluded on September 9, 2020. • No major maturities in the near future. 267 • Availability of the RCF: 84 approx. 2

  11. Slide 11: Pension obligations with low financing costs compared to ordinary debt

    Transformation program. Pension obligations with low financing costs compared to ordinary debt. // Net debt (€M) // Repayment profile 1.135 (annual pension payments HDM Germany €M)* ▪ ~90% of HDM's net debt is due 40 40 to on-balance sheet pension 38 obligations 36 35 36 33 34 ▪ Based on HDM's 32 de

  12. Slide 12: Stronger cash generation overcompensates increase in pension payments

    Transformation program. Stronger cash generation overcompensates increase in pension payments. // Yearly pension payments will // Reduced interest costs2 // Financing the transformation // Improved cash peak around 20351 (Net cash interest in €M) (Targeted EBITDA3-Margin in %) conversion - € 20m +>6

  13. Slide 13: Clear focus in our strong core business

    Market environment / core business. Clear focus in our strong core business. A B C // Packaging // New business models // Growth market China Expansion of the strong New contract models for Stronger presence in the market position in the growing growing demand for Chinese growth market and packaging

  14. Slide 14: Our focus on the strong core business is paying off

    Market environment / core business. Our focus on the strong core business is paying off. A B C // Packaging // New business models // Growth market China Market share in Packaging Share of SFO* machine sales Share of recurring contract printing in China business of group sales (SFO* printing units)

  15. Slide 15: Strategy process for new value creation already started

    Market environment / core business. Strategy process for new value creation already started. // Strategy process for new growth started: Step 1: Review of forward issues within core business Step 2: New growth potential based on Heidelberg strengths First results by end of FY 21 // New growth initia

  16. Slide 16: Outlook

    Outlook. We are going forward strengthened and look ahead confidently. Confident, because our core markets are clearly defined and fundamentally sound Tailwind from recovering markets and positive signals from our customers Outlook for FY21 remains unchanged – despite uncertainties caused by Covid-1

  17. Slide 17: Backup

    Backup © Heidelberger Druckmaschinen AG | Titel der Präsentation ("Einfügen > Kopf- und Fußzeile") 17

  18. Slide 18: Sales and EBITDA by segment in first half year 20/21

    Backup. Sales and EBITDA by segment in first half year 20/21. • Heidelberg Digital Technology: Sales by segment EBITDA* by segment as expected in the wake of the investment restraint resulting from the COVID-19 pandemic, sales were 1,124 down yoy. However Q2 sales was up significantly on € m 1200 €

  19. Slide 19: Asia/Pacific and EMEA: signs of recovery towards the end of Q2

    Backup. Asia/Pacific and EMEA: signs of recovery towards the end of Q2. Incoming orders by region 6m 20/21 (6m 19/20) €m 1400 1,263 South America 28 1200 234 North America 1.7% 1000 (2.2%) EMEA 864 17.4% 144 15 (18.5%) 800 151 36.6% 382 116 € 864m (37.6%) 600 (€ 1,263m) 267 Asia/Pacific 30.9% 400 (3

  20. Slide 20: Significant improvement in Q2 in incoming orders and sales

    Backup. Significant improvement in Q2 in incoming orders and sales. €m Q2 19/20 Q2 20/21 Δ PY Incoming orders 648 518 -20% Sales 622 475 -24% EBITDA excl. 55 37 -18 restructuring result EBIT excl. restructuring 32 18 -14 result Restructuring -1 -10 -9 result Financial result -10 -14 -4 EBT 20 -6 -26

  21. Slide 21: Packaging: More than half of SFO machine sales

    Backup. Packaging: More than half of SFO* machine sales. A // Development of the // Share of SFO* machine // Market share in Packaging global PPV by segment sales printing (SFO* printing units) € bn 158 in % Others 166 160 142 152 165 46% Heidelberg 51 36 2018 2021e 2024e 2014 2020 2018 Commercial P

  22. Slide 22: New business models: Share of recurring revenue steadily increasing

    Backup. New business models: Share of recurring revenue steadily increasing. B // Share of recurring contract business of Group sales in % ~11 7 8 5 2018 2019 2020 2021e // ~350 Lifecycle contracts // ~70 Subscription contracts // Subscription Plus presses showed up to 15% higher print volumes in th

  23. Slide 23: Growth Market China: By far market leader and increasing footprint

    Backup. Growth Market China: By far market leader and increasing footprint. C // Development of China‘s // Printing volume in China constantly above prior year PPV by segment € bn 27 26 24 35 40 30 2018 2021e 2024e ~ 47% Commercial Packaging & Label (estimates without COVID-impact) Source: Heidelber

  24. Slide 24: Financial calendar 2020/2021

    Financial calendar 2020/2021. February 10, 2021 Publication of Third Quarter Figures FY 2020/2021 June 9, 2021 Press Conference, Annual Analysts’ and Investors’ Conference July 23, 2021 AGM - Dates may be subject to changes - © Heidelberger Druckmaschinen AG 24

  25. Slide 25: 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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