Heidelberger Druckmaschinen Ag · XETR:HDD
Heidelberger Druckmaschinen — Q2 FY2019/2020 Earnings Presentation
18 slides from Heidelberger Druckmaschinen's earnings presentation, Nov 6, 2019
Slide 1: Heidelberg goes digital!
Heidelberg goes digital! Heidelberger Druckmaschinen AG | Second Quarter Results FY 2019/2020 Rainer Hundsdörfer (CEO) | Marcus Wassenberg (CFO), Wiesloch | November 6, 2019
Slide 2: First 6m FY 2019/2020. Solid Q2 – market uncertainties persist
First 6m FY 2019/2020. Solid Q2 – market uncertainties persist. • High volatility of business over the quarters, regional differences and still high dependence on economic fluctuations. • Improvements in key operating figures: order intake, sales revenue and profitability. • Overall solid half-year
Slide 3: First 6m FY 2019/2020. Q2 business drivers
First 6m FY 2019/2020. Q2 business drivers. • Technology leadership through digitization drives investment particularly in the USA and China. • Digital business models, contract business and e-commerce contribute positively. • Subscription business accounts for more than 10% of order backlog – furth
Slide 4: Looking ahead
Looking ahead. Economic risks and investments in digital transformation burden earnings margin. • Ongoing declining trend in Germany and parts of Europe due to the economic slowdown and Brexit. Therefore German government, IMF and VDMA significantly lowered their forecasts for 2019 for Germany and E
Slide 5: Our conclusion
Our conclusion. Pressing ahead with digital transformation. • Optimize production footprint • Review of product portfolio for profitability and divestment of non-core parts • Continue to streamline organizational and management structure Focus on cost efficiency and profitability © Heidelberger Druc
Slide 6: New CFO
New CFO. Marcus A. Wassenberg. “Based on my expertise and history, I see my greatest strengths primarily in the area of digital transformation and the long-term stable financing required for it.” © Heidelberger Druckmaschinen AG 6
Slide 7: To transform the company means to focus
To transform the company means to focus. Sustainable and substantial improvement of profitability. • Stable business volume but insufficient profitability • Significant upfront expenditures in digital transformation • Considerable structural costs due to broad portfolio and not yet efficient organiz
Slide 8: Key Figures 6m FY 2019/2020
Key Figures 6m FY 2019/2020. 1st time IFRS 16* • Despite considerably higher demand in China order intake reflects 6m 6m Δ pY investment postponements due to worsened economic conditions FY 18/19 FY 19/20 in WE; Order backlog increased (FYE19: € 654m) to € 756m. Order intake 1,306 1,263 -43 • Sales
Slide 9: Key Financial Highlights
Key Financial Highlights. Sales and EBITDA by segment in 6m FY 19/20. Sales by segment EBITDA* by segment • Heidelberg Digital Technology: € Mio. 1,114 € Mio. Sales slightly higher after 6m than previous years figure. 1200 1,124 80 2 2 69 In Q2 sales were up from € 341m to € 383m (yoy) , for 655 2 6
Slide 10: Key Financial Highlights
Key Financial Highlights. Decrease in equity due to decline of discount rate for domestic pensions. > Assets FY 2019 FY 2019 FY 2020 > Equity and liabilities FY 2019 FY 2019 FY 2020 30-09-2018 31-03-2019 30-09-2019 30-09-2018 31-03-2019 30-09-2019 Fi gures i n mEUR Fi gures i n mEUR Fixed assets 830
Slide 11: Backup
Backup © Heidelberger Druckmaschinen AG 11
Slide 12: 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 Significant effects of the • Increase in EBITDA excluding restruc
Slide 13: Order intake – regional split
Order intake – regional split. Strong China and weakening EMEA. Regional order intake 6m 2019/20 (6m 2018/19) Regional order intake Q2 2019/20 (Q2 2018/19) South America South America North America 2.2% North America 1.7% (3.4%) EMEA (3.1%) EMEA 18.5% 20.4% (16.0%) (17.8%) 37.6% 38.9% € 1,263m (43.0
Slide 14: Key Figures Q2 FY 2019/2020
Key Figures Q2 FY 2019/2020. 1st time IFRS 16* Q2 Q2 Δ pY FY 18/19* FY 19/20 Order intake 641 648 +7 Sales 573 622 +49 EBITDA excl. restructuring result 43 55 +12 EBIT excl. restructuring result 26 32 +6 Restructuring result -6 -1 +5 Financial result -12 -10 +2 Net result before taxes 8 20 +12 Net r
Slide 15: Free cash flow
Free cash flow. Investments in the digital future of Heidelberg. (1) Change in Cash used in operating activities mainly 6m 18/19 6m 19/20 Δ pY results from NWC rise; € 8m increase due to first-time IFRS 16 application. Net result after taxes -10 -6 -16 (2) Net Working Capital rose due to the expecte
Slide 16: Our financial framework as of September 30, 2019
Our financial framework as of September, 30 2019. Stable financial framework and sufficient liquidity resources (incl. IFRS 16). Financing instruments Maturities per calendar year €m 720 37 (5%) 320 (44%) 416 ~59* 54 1 (8%) 273 100 29 (14%) 11 25 356 320 Other | amortizing 150 150 RCF (21%) REL | am
Slide 17: Financial calendar 2019/2020
Financial calendar 2019/2020. February 11, 2020 Publication of Third Quarter Figures 2019/ 2020 June 9, 2020 Press Conference, Annual Analysts’ and Investors’ Conference July 23, 2020 Annual General Meeting Subject to change © Heidelberger Druckmaschinen AG 17
Slide 18: 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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