Heidelberger Druckmaschinen Ag · XETR:HDD
Heidelberger Druckmaschinen — FY 2018/19 Earnings Presentation
34 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 6, 2019
Slide 1: Heidelberg goes digital!
Heidelberg goes digital! Heidelberger Druckmaschinen AG | Analysts’ and Investors’ Conference Rainer Hundsdörfer (CEO) | Dirk Kaliebe (CFO), Frankfurt | June 6, 2019
Slide 2: Agenda
Agenda 1. Financial figures & Outlook | Dirk Kaliebe, CFO 2. Strategy & Conclusions | Rainer Hundsdörfer, CEO © Heidelberger Druckmaschinen AG 2
Slide 3: Key Financial Highlights
Key Financial Highlights. Sales and earnings targets achieved for financial year 2018/19. Δ pY FY 17/18 FY 18/19 • Total order intake slightly below prior year, increase in HDLS / decline in HDT; Order backlog at € 654 m, Order intake 2,588 2,559 -29 above prior year (€ 604 m). Sales 2,420 2,490 +70
Slide 4: Order intake
Order intake. Stable despite weakening dynamics. Change in global GDP in% Regional order intake FY 2018/19 (FY 2017/18) South America 3.2 3.0 North America 2.8% 2.8 (3.1%) EMEA 2.5 2.0 17.9% (16.4%) 42.0% € 2,588m (44.5%) (€ 2,593m) Asia/Pacific 25.7% (25.9%) 11.6% (10.1%) 2015 2016 2017 2018 2019e
Slide 5: Key Financial Highlights: Sales and EBITDA by segment
Key Financial Highlights. Sales and EBITDA by segment in FY 18/19. Sales by segment EBITDA* by segment • Heidelberg Digital Technology: € Mio. € Mio. Sales significantly increased, especially in sheet-fed 3000 200 180 2.420 2.490 172 offset and digital printing machines. Order momentum 4 4 4 2 655 6
Slide 6: Key Financial Highlights: Increase in equity ratio
Key Financial Highlights. Increase in equity ratio. • Fixed assets increased due to investments in the Innovation Center and the ramp-up of the subscription model. • Equity increased by approx. € 68m, although the reduction in the discount rate for domestic pensions from 2.1 to 2.0 had a negative ef
Slide 7: Net Working Capital
Net Working Capital. Active cash management. 800 40 714 691 667 684 • Net working capital sustainably reduced to 610 below 30 percent of sales 600 30 400 20 • Measures for further reduction initiated 200 10 • Temporary increase of inventories due to the series start-up of the digital portfolio and 0
Slide 8: Free cash flow
Free cash flow. Investments in the digital future of Heidelberg. • (1) Cash flow on same level as in previous year Δ pY FY 17/18 FY 18/19 • (2) Net Working Capital increased due to the Net result after taxes 14 21 7 planned series start-up of the digital portfolio, 1 Cash flow 104 105 1 but at 27.5%
Slide 9: Financing the future: Investment in the new innovation center
Financing the future. Investment in the new innovation center. Operational Excellence Holistic site concept: • Sale of Headquarters, relocation of administration and showroom (1000 FTE) from Heidelberg to Wiesloch • Conversion of the Innovation Center and relocation in December 2018 (another 1000 FT
Slide 10: Financing the future: The Think-Tank of the digital future
Financing the future. The Think-Tank of the digital future of Heidelberg. Operational Excellence Holistic site concept: • Sale of the research and development building (FEZ) in Heidelberg to the municipal housing association GGH and acquisition of easements of underground parking spaces in the FEZ.
Slide 11: Financing the future: three pillars
Financing the future. Heidelberg's digital future is balanced on three pillars. • Our financing strategy: Appropriate diversification Capital Market of the overall credit framework in terms of Instruments instruments and maturities • Our 3 Pillars: Capital Market Instruments (~ 21%) Other Syn- Syndi
Slide 12: Our financial framework
Our financial framework. Sources and maturities further optimized. Financing instruments Maturities per calendar year €m Other 715 RCF 33 REL (5%) EIB HYB CB Net debt 320 (45%) 33 53 53 0 (7%) 270 100 100 250 27 (14%) (20%) 9 25 320 Other | amortizing 150 150 150 RCF (21%) (30%) REL | amortizing EIB
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
Slide 14: Outlook Financial Year 19/20
Outlook Financial Year 19/20. Stable development expected. • Increasing economic risks and • Overall robust core business expected weakening order dynamic Increasing demand in China (good print fair) and Economic slowdown and uncertainties on solid business in US; EMEA weaker (Germany, UK) world mar
Slide 15: Agenda
Agenda 1. Financial figures & Outlook | Dirk Kaliebe, CFO 2. Strategy & Conclusions | Rainer Hundsdörfer, CEO © Heidelberger Druckmaschinen AG 15
Slide 16: Heidelberg goes digital
Heidelberg goes digital. Profitable growth and improvement of efficiency. • Core business: stable • Subscription: growing and independent of economic cycles • Digital printing: conservative ramp-up • New Ventures: potential • Operational Excellence: increase of efficiency Our Vision: We build the di
Slide 17: Digital eco system Hei.OS
Digital eco system Hei.OS. Digital market place for services around the printing industry. 5. SYSTEM OF SYSTEMS HEI.OS 4. SYSTEM OF PRODUCT S 3. INTELLIGENT & NETWORKED PRODUCT 2. INTELLIGENT PRODUCT 1. PRODUCTS DEMAND MGMT. SUPPLY MGMT. PRINTSHOP MGMT. PRINTSHOP MGMT. HEI.OS RESOURCE & WASTE FINANC
Slide 18: Focus on implementation of digital transformation
Focus on implementation of digital transformation. We build the digital eco system for the print media industry. Take over of the start-up Crispy Mountain for cloud software © Heidelberger Druckmaschinen AG 18
Slide 19: Modular access to the subscription model
Modular access to the subscription model. Significant expansion of contract business. Free Software Service Lifecycle complete Subscription Subscription contracts contracts Subscription Heidelberg ID Software Service Consumables Pay per Pay per piece outcome Customer Customer Equipment doesn‘t own o
Slide 20: Customer demand for usage-dependent business models is growing
Customer demand for usage-dependent business models is growing. Subscription modell successfully implemented. "I was not sure what exactly we were talking about, but then it quickly became clear that this is exactly what we were looking for." “With local Heidelberg professionals helping us increase
Slide 21: The subscription model creates value
The subscription model creates value. Improved performance at the customer. SX52-5+L XL106-6+P+L Performance Performance Prints: 1,115,689 + 157,356 Prints: 2,102,034 + 435,367 Target: 958,333 ~ 16% Target: 1,666,667 ~ 26% © Heidelberger Druckmaschinen AG 21
Slide 22: The subscription model means stability
The subscription model means stability. Significant expansion of recurring revenues. • Around 8 % of the order backlog are already subscription contracts • Currently total volume of ~1.2 billion printed sheets under contract, produced by the customer • In Germany, due to the subscription business, t
Slide 23: HDU (Heidelberg Digital Unit) now also in China
HDU (Heidelberg Digital Unit) now also in China. eCommerce expansion in the growing Chinese market. 1 2 3 Create New Assets Create digital Omni- Measure Develop new Channel Customer performance and integrated platforms Journey connecting optimize marketing – eCommerce, Apps, all touch points investm
Slide 24: The market for small and individual runs is growing
The market for small and individual runs is growing. Industrial digital presses are the technological future. Calendars Cosmetics Food Degree of • Small to medium runs with Individuali- completely individual content individualisation Calendars Cards sation Value through personal address Pharma Food
Slide 25: Cloud-based web-to-pack platform started
Cloud-based web-to-pack platform started. Eco system for digital packaging printing realized with Primefire. Packaging Printer Packaging Designer • Access to short run • Packaging design toolkit packaging orders • Print production on Heidelberg • Get print ready files from the industrial digital pri
Slide 26: Expansion of digital business models through AI
Expansion of digital business models through artificial intelligence (AI). AI at Heidelberg as part of the digital transformation. Heidelberg Smart Printshop AI uses the installed base data pool to identify patterns, identify potentials, and generate optimal settings. The goal are optimized basic se
Slide 27: Technology with disruption potential
Technology with disruption potential. Breakthrough in industrial printing of organic electronics. • Heidelberg ist shareholder of the Innovation Lab, Heidelberg • Entry into industrial mass production of printed organic electronics by Heidelberg • Mass suitable and cheap • Printed organic electronic
Slide 28: Charging technology in series
Charging technology in series. Original equipment manufacturer for e-mobility start-up. • e.GO Mobile AG uses Heidelberg charging technology • The basis is Heidelberg Wallbox Home Eco • Series deliveries begins CY 2019 • Wallbox also available through online shops - high customer interest and excell
Slide 29: Operational Excellence
Operational Excellence. Efficiency enhancement projects will continue. Agile production Improve Platform concepts and competitiveness reduction of complexity Targeted streamlining and Optimize site concept structure optimization • Wiesloch site is further • Targeted early retirement programs consoli
Slide 30: Our goal
Our goal. Profitable growth and improvement of efficiency. • Core business: stable • Subscription: growing and independent of economic cycles • Digital printing: conservative ramp-up • New Ventures: potential • Operational Excellence: increase of efficiency © Heidelberger Druckmaschinen AG 30
Slide 31: Our roadmap
Our roadmap. We build the digital eco system for the print media industry. 5. SYSTEM OF SYSTEMS HEI.OS 4. SYSTEM OF PRODUCT S 3. INTELLIGENT & NETWORKED PRODUCT 2. INTELLIGENT PRODUCT 1. PRODUCTS DEMAND MGMT. SUPPLY MGMT. PRINTSHOP MGMT. PRINTSHOP MGMT. HEI.OS RESOURCE & WASTE FINANCE & MGMT. BIG DA
Slide 32: Backup
Backup © Heidelberger Druckmaschinen AG 32
Slide 33: Financial calendar 2019/2020
Financial calendar 2019/2020. June 6, 2019 Press Conference, Annual Analysts’ and Investors’ Conference July 25, 2019 Annual General Meeting August 6, 2019 Publication of First Quarter Figures 2019 / 2020 November 6, 2019 Publication of Half-Year Figures 2019 / 2020 February 11, 2020 Publication of
Slide 34: 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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