Annual General Meeting Print is more. Dr. Gerold Linzbach, CEO

Transcription

1 Annual General Meeting 2013 Print is more. Dr. Gerold Linzbach, CEO Heidelberger Druckmaschinen AG, July 23, 2013

2 Agenda 1. Where are we coming from? 2. Where are we today? 3. Where do we want to go? 2

3 Economic crisis in 2008 hits the printing press industry in EUR millions Group sales /08 08/09 09/10 10/11 11/12 12/13 3

4 Crisis in 2008 primarily impacts new machine sales service operations are stable in EUR millions Umsatz HD seit GJ 2007/08 New machine sales Investment goods in EUR millions Equipment sales 07/08 08/09 09/10 10/11 11/12 12/ Business with installed base Consumables / services 07/08 08/09 09/10 10/11 11/12 12/ in EUR millions Services sales /08 08/09 09/10 10/11 11/12 12/13 4

5 Print volume consistently high 500 in EUR billions Global print volume Source: Heidelberg estimate April 2012, BCG Analysis November 2011, industry statistics, PIRA, Jakkoo Pöyry, Primir (GAMIS), Global Insight Sheetfed offset 5

6 Consolidation into larger operations Number of print shops in Germany Source: Bundesverband Druck und Medien (Federal Association of Print and Media, BVDM) 6

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8 Presence in key growth markets in a changing environment Regions Applications Publishing 29% Publishing ~ 15% Industrialized nations 70% Industrialized nations 55% Commercial 44% Commercial ~ 60% Emerging markets 30% Sheetfed offset print volume Source: Heidelberg estimates, industry statistics Emerging markets 45% Heidelberg sales FY 2013 Packaging 27% Packaging ~ 25% Global market Heidelberg sales FY

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10 Global sale of integrated digital print solutions 10

11 Summary: The market is stable in terms of volume but continues to change considerably For the most part, Heidelberg has the right products and is in business with the right customers/applications The lack of financial success is mainly due to: High expenditures to cover ongoing losses and restructuring Investments in the future (R&D, CAPEX, e.g. China) But we have made mistakes, too: Delay in adjusting structures and capacities to real market size Defensive pricing policy Use of resources not sufficiently focused on submarkets with attractive profitability 11

12 Agenda 1. Where are we coming from? 2. Where are we today? 3. Where do we want to go? 12

13 Restructuring has helped return per capita sales to figure of 2008 profitability must be improved in EUR millions Sales Sales p.c.* 3,670 2,735 in EUR thousands in EUR thousands EBITDA p.c.* / /13 * Number of employees 2007/2008: 19,600; 2012/2013: 14, / / / /13 13

14 Restructuring has helped return per capita sales to figure of 2008 profitability must be improved in EUR millions Umsatz in EUR thousands Sales p.c.* in EUR thousands EBITDA p.c.* Medium term ~ 17 Short 15 term ~ / /13 * Number of employees 2007/2008: 19,600; 2012/2013: 14, / / / /

15 Improvement in key figures, but result is negative Key figures Figures in EUR millions FY 2012 FY Apr-2011 to 31-Mar Apr-2012 to 31-Mar-2013 Net sales 2,596 2,735 EBITDA EBIT excluding special items 3 28 Special items Financial result % 39% 39% 40% 37% 36% 34% 32% Net result / loss Free cash flow Net debt

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17 The Asian market incl. China accounts for almost the same size as Western Europe in EUR millions (regional proportion) 1,010 (37%) 375 (14%) North America 304 (11%) EMEA Eastern Europe 437 (16%) China 461 (17%) 147 (5%) South America Asia/Pacific 17

18 Operating result clearly positive EBITDA by segment (excluding special items)* in EUR millions 90 * The previous year s figures have been adjusted in the segments FY 2011/2012 HDE 21 FY 2012/2013 FY 2011/2012 HDS Heidelberg Financial Services: FY 2011/2012: EUR 14 million; FY 2012/2013: EUR 9 million FY 2012/

19 Further reduction in total assets: Equity also impacted by actuarial losses Assets Equities and liabilities Figures in EUR millions Mar.31, 2012 Mar.31, 2013 Figures in EUR millions Mar.31, 2012 Mar.31, 2013 Fixed assets Inventories Receivables from supplies and services Trade receivables Equity Provisions 933 1,000 Financial liabilities Trade payables Other assets Liquid assets Total assets 2,518 2,338 Other liabilities Total assets 2,518 2,338 19

20 Stable financing framework in EUR millions Financing framework 820 million 41 Other From July 2013 Syndicated credit line until December 2014 Convertible bond until July 2017 High-yield bond until April 2018 * Maximum drawdown to Sep. 30, Net debt was EUR 357 million Maximum utilization* Q2 2012/2013 Other: Local lines, non-cash lines and headroom Fluctuation over the course of the year Gross financial liabilities Ample financial flexibility: Bond and convertible bond cover current net debt of approximately EUR 260 million Syndicated credit line finances business fluctuations in the course of the year Diversification of financing sources and maturity dates achieved 20

21 Systematically reduce complexity to retain economies of scale with current volumes and improve efficiency Diversity of parts Diversity Werkzeugreduz. of tools Sales complexity Focus on 15,000 core customers Bundling of back office functions in sales / / / /17 21

22 Targeted reduction in net working capital to further reduce relative level of debt (leverage) Net Diagrammtitel working capital in EUR millions Leverage Net financial debt relative to EBITDA max. 1,360 min. 1,212 2,4 max. min / /13 <2,0 2012/13 Target 22

23 Key objective: Win back trust on capital market 50 Heidelberg Anleihe bond Heidelberg Aktie share DAX Current price of highyield bond above the issue price -40 Mar Mrz Apr May Mai. 12 Jun. 12 Jul Aug Sep Oct Okt Nov Dez. Dec Jan Feb. 13 Mrz. Mar 13 Apr. 13 Mai. May 13 Jun

24 Agenda 1. Where are we coming from? 2. Where are we today? 3. Where do we want to go? 24

25 Entrepreneurial responsibility at business area (BA) level R&D Production Sales Equipment segment: BA Sheetfed, BA Postpress, BA Digital, etc. Market orientation Services segment: BA Services, BA Consumables, etc. Profitability 25

26 Strategic categories and precise performance targets for each BA by FY 2013/2014 Invest to grow Invest to maintain Run for cash Non-performing Performing 26

27 Although we are a mechanical engineering company the people behind the machines are becoming increasingly important: Technology expertise Equipment Services Customer expertise 27

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30 Further key milestone on the way to profitability First quarter FY 2013/2014: Operating result significantly up on the previous year as planned Confirmed target for FY 2013/2014: Positive net result 30

31 Medium-term profitability target EBITDA margin in percent 8 >8% Before the crisis EBITDA margin of over 8 % 7 EBITDA margin of over 8 % 6 can be regained with the 5 4.1% existing portfolio 4 EBITDA margin of 8 % FY 2012/2013 Target corresponds to the average value of the top half of similar international mechanical engineering companies 31

32 Annual General Meeting 2013 Thank you very much for your time. Dr. Gerold Linzbach, CEO Heidelberger Druckmaschinen AG, July 23, 2013