Heidelberger Druckmaschinen Ag · XETR:HDD

Heidelberger Druckmaschinen — FY2014/15 Earnings Presentation

26 slides from Heidelberger Druckmaschinen's earnings presentation, Jun 10, 2015

  1. Slide 1: Analysts' and Investors' conference Financial Year 2014/15

    Analysts‘ and Investors‘ conference Financial Year 2014/15 Dirk Kaliebe, CFO | Robin Karpp, Head of IR June 10, 2015 © Heidelberger Druckmaschinen AG |

  2. Slide 2: Agenda

    Agenda 1. „Heidelberg reloaded“ 2. Strategic reorientation of Heidelberg and commitment to growth 3. FY 14/15 key financials 4. Summary & Outlook © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 2

  3. Slide 3: We have 'reloaded' our logo: more human than machines

    We have „reloaded“ our logo: more human than machines, more offerings than just machines! We updated our logo in line with our corporate strategy. The three customer touch points: Service, Equipment and Consumables are reflected in the colors of the first letter “H”. All of the colors are connected

  4. Slide 4: Emphasizing specific customer benefits summarized in icons

    And we will also emphasize the specific customer benefits, summarized in icons: quickly, easily, simply. We will stop limiting ourselves by explaining technical features and functions. In fact we will emphasize the customer benefits, summarized in icons. Remote Services Automated e-Commerce Process

  5. Slide 5: Agenda

    Agenda 1. „Heidelberg reloaded“ 2. Strategic reorientation of Heidelberg and commitment to growth 3. FY 14/15 key financials 4. Summary & Outlook © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 5

  6. Slide 6: Strategic reorientation of Heidelberg and commitment to growth

    Strategic reorientation of Heidelberg and commitment to growth © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 6

  7. Slide 7: Market trends: Big and stable printing market with attractive pockets of growth

    Market trends: Big and stable printing market with attractive pockets of growth Size (p.a) Trends Global ● Stable PPV volume Print approx.€400bn ● Customer base strongly consolidates into (partially multinational) industrialized printers Production ● Flexibility vs productivity: Customers require bo

  8. Slide 8: Market trends: Dealing with the right (winning) customers

    Market trends: Dealing with the right (winning) customers ● Customer segmentation ● IT based sales management ● Dual product focus: ● (highly) customized solutions for industrial markets ● standard products and services for emerging markets From Towards 200,000 generalists 15,000 specialists © Heide

  9. Slide 9: 2014/15: Year of strategic reorientation (1)

    2014/15: Year of strategic reorientation (1) Target: Profitability Status Realignment of non strategic business • Realignment of Postpress  • Packaging • Commercial • Site optimization (Leipzig, Ludwigsburg)  Operational improvements in core business Sheetfed Offset • Streamlining of product portf

  10. Slide 10: 2014/15: Year of strategic reorientation (2)

    2014/15: Year of strategic reorientation (2) Target: Growth Status Expansion Service + Consumables • Acquisition PSG  • Acquisition BluePrint Products  (Pressroom chemicals)  total > € 100m sales Establishment as leading provider in Digital printing • Expansion of cooperation with Ricoh + FujiFil

  11. Slide 11: 2014/15: Year of strategic reorientation (3)

    2014/15: Year of strategic reorientation (3) Target: Financial stability Status Optimization of balance sheet and Financing structure • Reorganization of company pension scheme  • Financial framework extended until 2022 • Placement of convertible bond and  corporate bond • Diversification of instr

  12. Slide 12: Heidelberg is successfully adapting its business model

    Heidelberg is successfully adapting its business model Towards ● a less cyclical ● more robust ● less fluctuating From ● less capital intense ● a structural cost intense ● market / customer driven business ● fluctuating with room to grow ● capital intense ● technology centered business ● acquisition

  13. Slide 13: Agenda

    Agenda 1. „Heidelberg reloaded“ 2. Strategic reorientation of Heidelberg and commitment to growth 3. FY 14/15 key financials 4. Summary & Outlook © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 13

  14. Slide 14: Strategic reorientation influences operational performance in 2014/15

    Strategic reorientation influences operational performance in 2014/15 comment in € million FY 2014 FY 2015 Δ pY ● Sales declined by around 4% as expected Order intake 2,436 2,434 –2 ● Operational EBITDA-margin slightly improved to Sales 2,434 2,334 –100 6%; EBITDA w/o special items increases to € 18

  15. Slide 15: Stable order intake over the last 2 years

    Stable order intake over the last 2 years Order intake Order intake FY 2015 (FY 2014) – regional split FY 2013/2014 FY 2014/2015 © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 15

  16. Slide 16: Operational performance retained despite portfolio measures – slowdown in China affects Equipment

    Operational performance retained despite portfolio measures – slowdown in China affects Equipment Sales by segment EBITDA by segment comment € million € million HDE: 3,000 200 188 ● Economic slowdown in China affects € -100m € +45m 6 2,434 sales volume 2,334 8 143 ● Realignment of Postpress division

  17. Slide 17: Balance sheet: NWC further reduced, net debt on low level

    Balance sheet: NWC further reduced – lowered actuarial interest rate increases pension provisions – net debt on low level > Assets FY 2014 FY 2015 > Equity and liabilities FY 2014 FY 2015 Figures in mEUR 31.03.2014 31.03.2015 31.03.2014 31.03.2015 Figures in mEUR Fixed assets 751 735 Equity 359 183

  18. Slide 18: Active pension liability management

    Active pension liability management Pension obligations Cash flow impact of pension obligations 605 FY12 FY13 FY14 FY15 ● Domestic discount rate decreased from 4.5 % (FY 2012) to Group net 326 8 12 8 8 1.7 % (FY 2015) cash payments ● Cash service for Domestic pensions kept rather 4.5 % 3.5% 3.5 % 1.

  19. Slide 19: Cash control: Strong management focus on NWC program

    Cash control: Strong management focus on NWC program has resulted in significant release of funds Net working capital development comment ● Proven track record in Asset 40% 35% und NWC Management in € million 31% ● Release of approx. €500m of funds since FY 2009 ● Further improvements initiated: red

  20. Slide 20: Cash control: Strongly improved operating and free cash flow

    Cash control: Strongly improved operating and free cash flow financed restructuring cash outs in m€ FY 2012 FY 2013 FY 2014 FY 2015 Comments Net Sales 2,596 2,735 2,434 2,334 ● EBITDA increased by more than 2.5x EBITDA* 62 80 143 188 since FY2012 EBITDA margin 2.4 % 2.9 % 5.9 % 8.1% ● Proven track r

  21. Slide 21: Agenda

    Agenda 1. „Heidelberg reloaded“ 2. Strategic reorientation of Heidelberg and commitment to growth 3. FY 14/15 key financials 4. Summary & Outlook © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 21

  22. Slide 22: Summary: Significant improvement of profitability and leverage

    Summary: Significant improvement of profitability and Leverage EBITDA* ● Focus on profitability and margin improvement +203% 188 • Focus efficiency program Profitability • FY 2014/15 portfolio optimization 62 • >20 % reduction in headcount to approx. 12,000 as of Mar-15 • Structural cost base signif

  23. Slide 23: Summary: Financial framework and maturity profile

    Summary: Financial framework and maturity profile Financial instruments Maturity profile Total sources of c. € 750m Real Estate Lease (Mar-2018) | amortizing IKB-KfW Loan (Mar-2019) | amortizing RCFA (Jun-2017) High Yield Bond (Apr-2018) High Yield Bond (May-2022) RCFA Convertible (Jul-2017) HYB 42%

  24. Slide 24: Summary: Outlook

    Summary: Outlook Improved EBITDA-margin to >8% (comparable 2014/15: 6%) • Based on: - more profitable product portfolio - improved cost basis - profitable growth • Improved financial result  Sustainably positive net result Annual sales growth of 2-4% from FY 2015/2016 expected • Strategic reorienta

  25. Slide 25: Questions & Answers

    Questions & Answers © Heidelberger Druckmaschinen AG | Analysts‘ and Investors‘ conference 2015 25

  26. Slide 26: Disclaimer

    Disclaimer This document was drawn up by Heidelberger Druckmaschinen AG (the “Company”) nor any of its affiliates / subsidiaries or the respective legal representatives shall be liable solely for information purposes. All recipients must treat it as confidential and must not in any way whatsoever (w

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