Heidelberg presents new growth strategy - significant improvement in sales and result targeted in period to 2022

Heidelberg (ots) -

- Strategic focus on technology leadership, digital transformation,
and operational excellence
- Group targets for 2022 defined and underpinned with specific
measures:
- Targeted increase in sales to around EUR3 billion, in EBITDA to
EUR 250-300 million, and in net profit after taxes to over EUR 100
million
- Initial strategic measures already implemented- two acquisitions
(DOCUFY / Fujifilm coatings & pressroom chemicals in EMEA) and
enhanced efficiency
- Presentation of annual financial statements for 2016/17 confirms
targets achieved

At today's Annual Press Conference for 2016/17, Heidelberger
Druckmaschinen AG (Heidelberg) is underlining its aspirations to
further strengthen the company's trailblazing position in the
printing press sector with the presentation of a new corporate
strategy. The company's Management Board is presenting "Heidelberg
goes digital!" - a package of measures for the years ahead with a
strategic focus on technology leadership, digital transformation, and
operational excellence. Following the successful turnaround with a
return to sustained profitability, Heidelberg will now also be aiming
for continuous growth. Group sales of around EUR 3 billion are being
targeted with a large number of specific measures in the period to
2022. The company has set its sights on a further significant
improvement in profitability, with EBITDA of EUR 250 to 300 million
and a net profit after taxes of over EUR 100 million. Sales in
financial year 2016/17 were just over EUR 2.5 billion, EBITDA at EUR
179 million and the net result after taxes at EUR 36 million.

"Over the next five years, Heidelberg will once again become a
leading light in the sector, enjoying strong growth and profits.
We've defined the relevant success factors and have already
introduced initial measures. This marks the start of a new era of
growth for Heidelberg," said the company's CEO Rainer Hundsdörfer.

Profitable growth thanks to innovations, digitization, and
enhanced efficiency at all levels

The turnaround achieved by Heidelberg over the past five years
with a rigorous restructuring program and a shakeup of its portfolio
has led to sustained profitability. Despite a slight fall in sales,
EBITDA doubled from the 2012 level to EUR 179 million. Following a
huge loss of EUR 230 million five years ago, the company recorded a
net profit after taxes of EUR36 million in 2017. The profitable
growth now being targeted for the period to 2022 will be boosted by
the following key strategies:

1. Technology leadership based on constant innovations focusing on
customer benefits and aimed at improving productivity while also
cutting costs in all print shop processes by maximizing efficiency.
Heidelberg is looking to play a pioneering role in digitization
(Simply Smart/Smart Print Shop) with its Push to Stop concept and
also in industrial digital printing for the packaging market with the
Labelfire and Primefire product lines. The objective here is to
double the market share in digital printing from the current level of
less than 5 percent to as high as 10 percent and generate additional
sales potential amounting to around EUR 200 million in the period to
2022.

2. Digital transformation, including the digitization and
integration of the previously separate areas of equipment, software,
services, and consumables with straightforward, transparent pricing
of all offerings for customers. The entire work process at the
customer's print shop will be addressed from a single source using a
single e-commerce sales platform. This will reduce complexity and
costs for customers while also boosting their productivity. The aim
here for Heidelberg over the next five years is to increase the
company's market share for consumables from the current level of 5
percent to just under 10 percent while also leveraging additional
sales potential of EUR 250 million. Part of this strategy is the
takeover of Fujifilm's coatings and pressroom chemicals business in
the EMEA region, which represents a sales volume of some EUR25
million. It will take effect as of July 1, 2017. Heidelberg is using
this takeover to expand in the attractive growth segment for
consumables. The transaction is another step in pursuing the
company's growth strategy of developing a fully comprehensive
cross-sector portfolio that is geared toward specific customer
requirements and also further strengthens Heidelberg's market
position for coatings and pressroom chemicals.

Digital transformation also means that Heidelberg will offer its
know-how to other plant and mechanical engineering companies and
startups in the future. Heidelberg benefits from the software and
engineering expertise forming part of the new possibilities offered
by Industry 4.0 - with options such as an IT suite, a cloud-based
platform, and production capacities. Industrial companies such as
BigRep, for example, already have their latest products for additive
manufacturing (3D printers) produced by Heidelberg. The aim by 2022
is for this to generate additional sales of some EUR50 million with
well above-average profit margins. The recent acquisition of software
supplier DOCUFY to strengthen the Digital Platforms business area and
expand the Industry 4.0 portfolio underlines the company's ambitions
in this direction.

Potential for improving profitability

The two strategic focal points detailed above are intended to
generate additional sales of at least EUR 500 million by 2022. The
additional operational excellence measures include efficiency
improvements at all levels to ensure the company's agility - without
the need for a new comprehensive restructuring program. The emphasis
is more on streamlining structures and processes, implementing agile
production, the current relocation of our research and development
activities to the Wiesloch-Walldorf site, and the optimization of the
logistics wage structure that has just been initiated. The company
believes this has the potential to cut process and structural costs
by some EUR 50 million over the next five years. What's more, the
existing and ongoing measures to lower financing costs will have a
positive impact on the net result after taxes. Heidelberg is
expecting these costs to fall by a further EUR 15 million or so.

The Heidelberg Digital Technology (HDT) and Heidelberg Digital
Business and Services (HDB) sectors were established on April 1, 2017
to prepare for the company's digital future. HDT combines sheetfed
offset, label printing, and postpress operations and is responsible
for developing, producing, and marketing the appropriate technologies
and products for new business models. HDB, meanwhile, is where
Heidelberg manages its operations relating to services, consumables,
remarketed equipment, digital printing technology and solutions
throughout the value-added chain.

Image material, the Annual Report for financial year 2016/17, and
additional information about the company are available in the Press
Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.

Important note:

This press 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 development and results may deviate
substantially from these forward-looking statements due to various
factors, such as changes in the macro-economic situation, in the
exchange rates, in the interest rates and in the print media
industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no
warranty and does not assume liability for any damages in case the
future development and the projected results do not correspond with
the forward-looking statements contained in this press release.

Chairman of the Supervisory Board / Vorsitzender des
Aufsichtsrats: Dr. Siegfried Jaschinski · Management Board /
Vorstand: Rainer Hundsdörfer, Chairman / Vorsitzender · Dr. Ulrich
Hermann · Dirk Kaliebe · Stephan Plenz Registered Office: Heidelberg
· Mannheim Registry Court / Amtsgericht Mannheim - Registergericht -
HRB 330004 · Ust.-IdNr. DE 143455661 Commerzbank AG Heidelberg IBAN:
DE32 6724 0039 0192 2640 01 BIC: COBADEFF672 · Deutsche Bank AG
Heidelberg IBAN: DE22 6727 0003 0029 8000 01 BIC: DEUTDESM672 2/4

Further information:
Heidelberger Druckmaschinen AG

Corporate Public Relations
Thomas Fichtl
Phone: +49 6222 82-67123
Fax: +49 6222 82-67129
E-mail: Thomas.Fichtl@heidelberg.com

Investor Relations
Robin Karpp
Phone: +49 6222 82-67120
Fax: +49 6222 82-99 67120
E-mail: robin.karpp@heidelberg.com

Original-Content von: Heidelberger Druckmaschinen AG, übermittelt durch news aktuell