Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — FY2016/2017 Earnings Presentation

36 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 8, 2017

  1. Slide 1: Investors' and Analysts' Annual Conference FY 2016/2017

    Heidelberger Druckmaschinen AG Investors' and Analysts' Annual Conference FY 2016/2017 R. Hundsdörfer, CEO | D. Kaliebe, CFO | Frankfurt| June 8, 2017

  2. Slide 2: My personal objective: Heidelberg the lighthouse of the industry

    My personal objective: >>Heidelberg will once again become the (high- growth and profitable) lighthouse of the industry!<< © Heidelberger Druckmaschinen AG 2

  3. Slide 3: Heidelberg goes digital. Analysis, strategy, targets.

    Heidelberg goes digital. Analysis, strategy, targets. 1. What has the new Heidelberg management done so far? What are the conclusions from this? 2. Which consequences have been drawn? We have defined the success factors for the future Initial strategic measures have already been implemented 3. We ha

  4. Slide 4: Agenda

    Agenda 1. Strategy R. Hundsdörfer 2. Financials / Outlook Dirk Kaliebe 3. Summary R. Hundsdörfer © Heidelberger Druckmaschinen AG

  5. Slide 5: Current situation. Turnaround achieved – tapping growth potentials

    Current situation. Turnaround achieved – tapping growth potentials with higher profitability. FY 2011/2012 FY 2015/2016 FY 2016/2017 Future Sales € 2,596 million € 2,512 million € 2,524 million € 90 million € 189 million € 179 million EBITDA (PSG one-time effect of € 19 million) (drupa costs € 10 mi

  6. Slide 6: Our culture. Driving force behind industry's digitization.

    Our culture. Driving force behind industry‘s digitization. Great ideas need visualization, VISION identity & communication. We are the Difference. VALUES We listen to you. We inspire innovation & MISSION deliver performance for our customers. We foster the digital future of our industry. © Heidelber

  7. Slide 7: Our roadmap is clear. Lighthouse of the industry again.

    Our roadmap is clear. Heidelberg will become the lighthouse of the industry again. Technology Oper- leadership ational (Innovation) excellence Digital Transformation (digital business models) © Heidelberger Druckmaschinen AG 7

  8. Slide 8: Our potentials. Value-based business models

    Our potentials. Value-based business models for equipment, service and consumables Sheetfed offset Market share €2.4 billion* >40% Increase market Digital share using Market share unique €2.5 billion** <5% positio- ning in Sheetfed Consumables Market share €8 billion** ~5% Our strategy, business mod

  9. Slide 9: Our new approach. Connecting to growing Print Production Volume

    Our new approach. Connecting our business to the growing Print Production Volume Change to life cycle contracts Development Print Production Volume (PPV) per technology [Bill. EUR] (subscription), where customers pay us for “their” output rather than for “our” factor input © Heidelberger Druckmaschi

  10. Slide 10: Technology leadership (Innovation)

    Oper- Technology ational leadership (Innovation) excellence Digital Transformation (digital business models) © Heidelberger Druckmaschinen AG 10

  11. Slide 11: Growth through technology leadership

    Growth through technology leadership. Product innovation to improve customer result. • Pioneer in digitization • Simply smart / Push-to-stop Digitization of print shops for highest efficiency and lowest printing costs through autonomous printing • Pioneer in industrial digital printing for packaging

  12. Slide 12: Digital Transformation (digital business models)

    Technology Oper- leadership ational (Innovation) excellence Digital Transformation (digital business models) © Heidelberger Druckmaschinen AG 12

  13. Slide 13: Growth through digital transformation

    Growth through digital transformation. Business model innovation towards customer value – Equipment, Software, Service & Consumables. Performance contracts for defined customer groups: Impression charge model HD Assistant / e-shop: “Customers pay for customer subscribes to their output rather than p

  14. Slide 14: Digital platforms

    Growth through digital transformation. Digital platforms. • Digital Platforms offers IT solutions for designing, producing, and servicing industrial customers’ innovative high-tech products • Focus on customer segments such as automotive, mechanical engineering, medical technology, and high-tech ind

  15. Slide 15: Operational excellence

    Technology Oper- leadership ational (Innovation) excellence Digital Transformation (digital business models) © Heidelberger Druckmaschinen AG 15

  16. Slide 16: Increased profitability by operational excellence

    Increased profitability by operational excellence Improve competitiveness Agile production Relocation of R&D – agile development Optimize site concept at Platform concepts and complexity reduction New tariff models Targeted stream-lining and structural optimization #4 Reduction of process-related an

  17. Slide 17: Our objectives. Short-, mid- and long-term.

    Our objectives. Short-, mid- and long-term. Long-term • Define, develop, strengthen integrated digital business models – Become a digital company! Mid-term • Bring to market new (digital) technologies & business concepts • Become turn-key provider & sell also offset performance (machinery – consumab

  18. Slide 18: Objectives for 2022. Profitable growth.

    Objectives for 2022. Profitable growth. • Digital print portfolio (€ +200 million) • Digital business model (equipment– consumables – service: € +250 million) • Digital platforms (€ +50 million) • Digital business model / Volume growth (€ +50 million) • Cost efficiency (operational excellence: € +50

  19. Slide 19: Agenda

    Agenda 1. Strategy R. Hundsdörfer 2. Financials / Outlook Dirk Kaliebe 3. Summary R. Hundsdörfer © Heidelberger Druckmaschinen AG

  20. Slide 20: Targets met. Successful strategic reorientation.

    Targets met. Successful strategic reorientation. Guidance FY 16/17 Result FY 16/17  Growth up to 4%  + 0.5%  EBITDA-Margin on  EBITDA-Margin ~ 7.1% previous year’s level (FY16: 7.5%)  Net profit € 36m  Net profit: moderate growth (FY16: € 28m)  Leverage at 1.4  Leverage <2  Solid financing

  21. Slide 21: Key Figures FY 2016/17

    Key Figures FY 2016/17 ● Order intake increase by 4% ● Sales only slightly up yoy ● EBITDA increased on like-for-like basis (previous year’s figure included € 19m PSG badwill); EBITDA margin at 7.1% ● EBIT before special items ● Special items ● Financial result ● Net result before taxes ● Sustainabl

  22. Slide 22: Sales: stable volume, EMEA and North America offset weakness

    Stable sales volume. Increase in EMEA and North America compensate weaknesses in China and Brazil. Sales Order intake FY 2017 (FY 2016) in € million 3,000 South America 2.8% North America (3.4) 17.0% 2,000 (17.6%) EMEA 43.5% € 2,593m (42.5%) (€ 2,492m) 1,000 25.7% (26.7%) Asia/Pacific 11.0% (9.8%) F

  23. Slide 23: Target profitability in HDS and HDE achieved

    Target profitability in HDS and HDE achieved. Sales by segment EBITDA by segment Comment € million € million 3,000 € +12m 189 € -10m 179 ● Stable sales volume on group 2,524 2 2,512 6 level – slight volume increase 6 5 200 in HDE thanks in part to drupa 63 69 2,000 270 1,332 1,355 (43%) 150 ● HD Equ

  24. Slide 24: Solid balance sheet. Equity ratio improved from 13% to 15%

    Solid balance sheet. Equity ratio improved from 13% to 15% > Assets FY 2016 FY 2017 > Equity and liabilities FY 2016 FY 2017 31-03-2016 31-03-2017 31-03-2016 31-03-2017 Figures in mEUR Figures in mEUR Fixed assets 724 741 Equity 287 340 Current assets 1.372 1.365 Provisions 930 898 thereof inventori

  25. Slide 25: Optimized financial framework. Diversification of instruments and maturities

    Optimized financial framework. Diversification of instruments and maturities. Task #2: Task #1: Diversification of Reduction of framework maturities and from € 1.4 billion to financing instruments € 700 million €296m (€254m) €73m €19m CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 CY 2022 Other instruments

  26. Slide 26: New financial framework

    New financial framework. Solid foundation for targeted investments, growth and further optimization of the capital structure Other Capital markets instruments & promotional instruments loans 23% Net cash interest Syndicated 44% 33% credit line FY16: €54 Mio FY17: €34 Mio FY22e: €~20 Mio © Heidelberg

  27. Slide 27: Targeted investments

    Targeted investments. Supporting strategy and improving operational profitability Mergers & Acquisitions: Structural optimization: Leverage <2 allows targeted Improvement of operational external growth in strategically performance by e.g. reduction important areas as of process and structural costs

  28. Slide 28: Efficiency. Infrastructure projects at Wiesloch-Walldorf site.

    Efficiency. Infrastructure projects at Wiesloch-Walldorf site. „R&D“ Hall #10 „Logistics“ WLC © Heidelberger Druckmaschinen AG 28

  29. Slide 29: New Matrix Organization. Heidelberg goes digital.

    New Matrix Organization. Heidelberg goes digital. © Heidelberger Druckmaschinen AG 29

  30. Slide 30: Re-segmentation. New segments HDT & HDB

    Re-segmentation. New segments HDT & HDB RESTATED Net sales FY 2017 FY 2017 until starting Figures in mEUR 31-03-2017 01-04-2017 until 31-03-2017 starting 01-04-2017 2.524 2.524 Heidelberg Equipment (HDE) Heidelberg Digital Technology (HDT) 1.355 1.367 BA Sheetfed BU Sheetfed …will place priority on

  31. Slide 31: Targets set. Outlook.

    Targets set. Outlook. Outlook FY 2016/17 FY 2017/18 5-years target € 2,524m on previous year‘s level up to € 3 billion +€ 500m 7.1 % 7 – 7.5% Up to 10% +€ 100m HDT ~ 5% HDT 5-7% HDT 6-9% HDB ~9% HDB 8-10% HDB 8-11% € 36m moderate increase ∑ > € 100m 1.4 below 2 below 2 © Heidelberger Druckmaschinen

  32. Slide 32: Agenda

    Agenda 1. Strategy R. Hundsdörfer 2. Financials / Outlook Dirk Kaliebe 3. Summary R. Hundsdörfer © Heidelberger Druckmaschinen AG

  33. Slide 33: Turnaround implemented. Target profitable growth.

    Turnaround implemented. Target profitable growth. 1. In 2016/17, Heidelberg has realized its promised goal of generating sustained profitability 2. Growth, which is currently still missing, as well as the next level of profitability will be achieved through rigorous focus on • Technological Leadersh

  34. Slide 34: Our roadmap is clear. Lighthouse of the industry again.

    Our roadmap is clear. Heidelberg will become the lighthouse of the industry again. 1. In the financial year 2017/18, we will make the necessary fundamental decisions and initiate actions accordingly, first important steps have already been implemented. 2. From 2018/19, this will already be reflected

  35. Slide 35: © Heidelberger Druckmaschinen AG

    © Heidelberger Druckmaschinen AG 35

  36. Slide 36: 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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