Investors’ & Analysts’ Conference FY 10 · printing markets +2.3% p.a. Commercial printing...
Transcript of Investors’ & Analysts’ Conference FY 10 · printing markets +2.3% p.a. Commercial printing...
1
Bernhard Schreier, CEO
Dirk Kaliebe, CFO
Andreas Trösch, Head of Investor Relations
Investors’ & Analysts’ Conference FY 10
Heidelberger Druckmaschinen AG
June 15, 2010
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NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF
AMERICA, CANADA, JAPAN OR AUSTRALIA
This presentation constitutes neither an offer to sell nor a solicitation to buy or subscribe for securities. Any such offer
will be made solely on the basis of the Securities Prospectus to be published and registered with the German Financial
Supervisory Authority (BaFin). The information legally required to be provided to investors is contained only in the
Securities Prospectus.
The information contained in this presentation is not for distribution, directly or indirectly, in or into the United States of
America (including its territories and possessions of any State of the United States of America or the District of
Columbia) and must not be distributed to U.S. persons (as defined in Regulation S under the U.S. Securities Act of
1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This
publication is not an offer of securities for sale in the United States of America. The securities have not been and will
not be registered under the Securities Act and may not be offered or sold in the United States of America absent
registration or an exemption from registration under the Securities Act. Heidelberg Druckmaschinen AG does not intend
to register any portion of the offering in the United States of America or to conduct a public offering of the securities in
the United States of America.
This presentation is not an offer of securities for sale in the United Kingdom, Canada, Japan or Australia.
The offer or sale of securities or transactions may be restricted by law. Potential investors are required to inform
themselves of and to observe any legal restrictions on their involvement in any transaction. There will be no offer or
sale of the securities in any state or jurisdiction in which such offer; solicitation or sale would be unlawful prior to
qualification under securities laws of such state or jurisdiction.
This presentation is subject to completion and amendment without notice.
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Achieved earnings guidance given in October 2009
Order intake has stabilised in past 4 quarters and shows first signs of recovery
Cost savings from successfully implemented restructuring measures
− Cost savings of €400m realised by implementation of „Heidelberg 2010“
− Additional efficiencies of c. €80m identified and realisation initiated
New segmentation to enhance focus on strategic priorities
Planned capital increase to strengthen balance sheet and support turnaround
Refinancing will be finalised by 2012
Today’s presentation will provide a detailed update on the recent development of
Heidelberg’s business and its strategic priorities to safeguard future success
Executive SummaryHeidelberg is on track to deliver strong recovery of results
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Heidelberg update highlights
Strong position to benefit from expected market recovery
Market leadership: global market and technology leadership in offset printing
technology – strengthened further through recent down-cycle in most format classes
Market recovery: sheetfed offset equipment market set for a cyclical recovery –
expected back up to 80% of previous cycle peaks
Focused strategy
Value creation roadmap
1
2
3
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Focus on key segments of the €40bn printing technology market
Packaging
3.0
Commercial
7.3
Pre-
press
1.7
Post-
press
1.3
Pre/Post-press
Maintenance
3.2
Parts
3.2
Other
3.2
Inks, coatings, toner
12.7
Plates
4.0
Services 1,2 Consumables 1Press 1 Pre/postpress 1
~ 42% ~ 14% ~ 43% ~ 4%
Sheetfed
Thereof sheetfed ~4.0
Equipment Services & consumablesM
ark
et
siz
e C
Y 2
008 (
€b
n)
Thereof sheetfed~2.3
Heidelberg installed base 2
Market
Heidelberg
sheetfed
positionClear market
leader
Ancillary
business
Growth
potential
Growth
potential
Strong position – market leadership1
Source: Heidelberg estimates (market shares); The Boston Consulting Group, Jun. 2010 (market data); calendar year(1) Market sizes reflect all printing technologies (i.e. sheetfed, webfed, digital, flexo, gravure); Heidelberg market share generally referring to sheetfed markets(2) Heidelberg services targeted to Heidelberg installed base only, size of addressable market approx. €1bn
Sheetfed
Thereof sheetfed~ 8.3
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Market position in prime formats1 reinforced during recent downturn
SF 70x100 SF 50x70
Source: Heidelberg estimates; data based on Heidelberg fiscal year (FYE 31 Mar)(1) Represents more than 85% of Heidelberg sheetfed offset new equipment sales(2) Based on order intake in printing units
Market Share2
+5%+9%
+19%
+15%
+3%
+106%
∆ +2pp
∆ +4pp
∆ +4pp
∆ +5pp
∆ +1pp
∆ +10pp
GlobalGlobal IndustrialsIndustrialised economies China / HKChina
Strong position – market leadership1
Superior technology and close customer
relationships are key drivers of Heidelberg’s
competitiveness
Successful market introduction of VLF and build-
up of strong presence within short time frame
VLF 145 & 162 Commentary
Market Share2
Market Share2
37% 39%44% 48%
25%21%
FY2005 FY2010 FY2005 FY2010 FY2005 FY2010
30% 35%44% 45%
19%9%
FY2005 FY2010 FY2005 FY2010 FY2005 FY2010
19%
35%
6%
FY2005 FY2010 FY2005 FY2010 FY2005 FY2010
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Strong historical correlation between economic development and
sheetfed equipment growth
Gulf war
Japan crisis
Asian crisis Dotcom crisis Financial crisis
GDP + PPV
growth rates in %
SFO equipment
growth rate in %
GDP
PPV
SFO
Equip.
Source: Heidelberg estimates, Feb. 2010 (based on: Global Insight, industry statistics, PIRA, PRIMIR, company annual reports; calendar years; 1991-2008: actuals; 2009-13: estimates)
(1) “GDP”: gross domestic product; “PPV”: print production volume; “SFO”: sheetfed offset
Growth rates: GDP and PPV vs. SFO Equipment 1
Estimates
Strong position – market recovery1
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In line with economic recovery, printing equipment market expected
to stabilize and return to growth from 2010 onwards
CAGR
09-14E
+12%
+10%
+8%
Source: The Boston Consulting Group, Jun. 2010 (calendar years; 2007-09: actuals; 2010-14: estimates)
Global sheetfed offset equipment market
2009: cycle trough (50% of pre-crisis
peak)
Significant pent-up demand exists due to
capex backlog among commercial
printers
Recovery from 2010 onwards to up to
80% of pre-crisis peak by 2014 expected
in the base case
€bn
Strong position – market recovery1
3.0
3.4
3.8
4.2
4.4
2.42.5
2.7
3.2
3.6
3.9
3.7
3.3
2.8
2.62.5
4.7
4.0
1
2
3
4
5
2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E
Upside case Base case Dow nside case
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Accelerated growth in services and consumables expected, driven
by strengthened print production volumes
+4%
+3%
+2%
CAGR
09-14E
+4%
+4%
+3%
SF-related consumables market (€bn)SF-related services market (€bn)
CAGR
09-14E
Less cyclical than equipment business
less affected by crisis
Maintenance and spare parts revenues
expected to grow in line with rising utilization
levels at printers
Lower cyclicality than equipment business
Accelerated growth of consumables revenues
expected to be driven by increase in print
production volumes
Source: The Boston Consulting Group, Jun. 2010 (calendar years; 2007-09: actuals; 2010-14: estimates)
Strong position – market recovery 1
2.02.0
2.2
2.32.4
2.0 2.02.1
2.22.3
2.0 2.02.0
2.22.2
2.0
2.3
2.1
1.0
1.3
1.5
1.8
2.0
2.3
2.5
2.8
3.0
2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E
Upside case Base case Dow nside case
7.88.1
8.5
9.1
9.5
7.77.9
8.3
8.8
9.1
7.7 7.88.1
8.58.8
7.7
8.3
8.3
5.0
6.0
7.0
8.0
9.0
10.0
2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E
Upside case Base case Dow nside case
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Heidelberg update highlights
Strong position to benefit from market recovery
Focused strategy
Continued restructuring: further capacity and headcount reduction resulting in
substantially lowered break-even volume and improved structural profitability
Focus on clearly defined growth opportunities: packaging printing, services,
consumables, emerging markets and opportunities in digital technology
Value creation roadmap
1
2
3
Focused strategy2
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Focused strategy - restructuring2
Annual fixed cost savings (€m)
One-off restructuring costs (€ million)
(179) (28) approx. (15) —
Estimated total fixed cost savings of €480m reduce cost base
sustainablyImprovement program of €400m already concluded in FY 2010, further cost measures
planned until FY 2012
—
Source: Heidelberg; financial data based on Heidelberg fiscal year (FYE 31 Mar); 2009-2010: actual (as per annual report); 2011-2012: estimates (as per Heidelberg press
releases (22/04/2010, 30/03/2010, 07/10/2009, 26/03/2009))
(1) Operating expenses incl. personnel, D&A and other operating expenses, excluding cost of materials
Represents
approx. 23%
of 2008A
operating
expenses1
84
316
60
480
20
FY 2009A FY 2010A FY 2011E FY 2012E Total
84
400
460 480
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Substantial headcount reduction delivers sustainably lower cost baseWorkforce has been reduced by around 4,000 by March 20101
Actual
Headcount at FYERevenue per employee
(€ ‘000)
Focused strategy – restructuring2
Headcount development since 2005
Further workforce reduction
to adjust capacities and due
to new segmentation
Mid-term target:
Substantial increase of revenue
per employee
Moderate increase of workforce
through economic recovery
Source: Heidelberg annual reports (headcount, sales), Heidelberg press release 30/03/2010 (further headcount reduction), Heidelberg annual report FY 2010; data based on
Heidelberg fiscal year (FYE 31 Mar); 2005-10: actuals; mid-term target: estimate
(1) Including temporary workers and excluding consolidation effects
18,416 18,436
19,171
19,596
18,926
16,496 850
10,000
12,000
14,000
16,000
18,000
20,000
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
0
20
40
60
80
100
120
140
160
180
200
Headcount Revenue per employee (€ '000)
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Strong growth trend for commercial and packaging print production
volumes
233.4
256.0+1.6% p.a.
+3.0% p.a.
+1.2% p.a.
Expected development of global commercial and addressable packaging printing markets 2009-15 (PPV, €bn)
Focused strategy – packaging focus2
Addressable
packaging
printing markets
+2.3% p.a.
Commercial
printing markets
Source: Heidelberg estimate, Apr. 2010 (based on: industry statistics 2009, PIRA 2009, Jakkoo Pöyry 2008, Primir (GAMIS) 2009, Global Insight 2010; calendar years)
Strategic focus
174.7 187.9
19.923.7
38.8
44.4
2009A 2015E
Commercial Labels & tags Folding boxes
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Focus on utilisation of large installed base to strengthen services
and service parts business
Key strategic measures
Services: improve penetration of Heidelberg
installed base (addressable market c. €1.0bn)
Product bundling
Leverage large installed base >8 years age
Standardised and modular service offering
with differentiated prices
Reduction of operating costs targeted to free
up capacity for growth programs
Service parts
Recovery with rising PPV and increased
equipment utilisation expected
Global hubs to optimise logistics and
inventory
Financial impact (€m) 1
Source: Heidelberg; financial data based on Heidelberg fiscal year (FYE 31 Mar);
2008-10: actuals; mid-term target: estimate
(1) Numbers include service parts, technical services, contract services and training
Focused strategy – services focus2
Mid-term target:
sales volume of > €450m p.a.
(> 15% of total sales)
Mid-term target
423 428400
17%
12%
14%
0
100
200
300
400
500
600
700
FY '08 FY '09 FY '10
Services sales
% of total sales
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Leveraging the Heidelberg brand and global access to customers
for broader consumables offering
Key strategic measures Financial impact (€m)
Direct access to customers and strong brand
Print production know-how
Product bundling
Bargaining power through standardized
portfolio and global supplier management
Supply chain management combined with
existing global spare parts supply chain
(local warehouses, regional hubs)
Targets:
− Harmonize and complete product portfolio
over next 2 years in each market
− Improve market coverage and penetration
− Global market share:
4% (2010) 7% (2015 targeted)
Focused strategy – consumables focus2
Mid-term target:
sales volume of > €450m p.a.
(> 15% of total sales)
Mid-term target
Source: Heidelberg; financial data based on Heidelberg fiscal year (FYE 31 Mar);
2008-10: actuals; mid-term target: estimate
281
308 309
8%
13%
10%
0
100
200
300
400
500
600
FY '08 FY '09 FY '10
Consumables sales
% of total sales
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Emerging markets sales as % of group sales 1
Heidelberg captures strong expected emerging markets growth
Source: Heidelberg estimate – Apr. 2010, Industry statistics 2009, PIRA 2009, Jakkoo
Pöyry 2008, Primir (GAMIS) 2009, Global Insight 2010; calendar years
Focused strategy – emerging markets focus2
2008-2014E real GDP growth
Data points shown for CY 2010
2010E total PPV growth (value in €)
-2% -2%
4%
7%
3%
8%
0%
-1%
Industrialized North
America
Western
Europe
Emerging China Brazil India Russia
Industrialized North America Western EuropeEmerging China BrazilIndia Russia
2%3%
2%
6%5%
8%
4%
9%
Industrialized North
America
Western
Europe
Emerging China Brazil India Russia
2008A 2009A 2010E 2011E 2012E 2013E 2014E
Mid-term
target
(1) Financial data based on Heidelberg fiscal year (FYE 31 Mar); “emerging markets”
include Eastern Europe, Latin America, Asia (ex Japan, Australia, New Zealand), Mid-
East / Africa; 1998-2010 actuals
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1998 2000 2002 2004 2006 2008 2010 2012 2014
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Digital opportunity – expanding Heidelberg’s addressable market
Digital manufacturer’s contribution ...Heidelberg’s contribution ...
Sales platform and infrastructure
In-depth customer knowledge and understanding
of customer needs
Direct customer access and proximity on a global
scale
Sophisticated integrated workflow tools,
integration capabilities
Service expertise and network
Top technology and process know-how in printing
Customer training
Brand leadership
Established digital product offering
Technological know-how / experience in digital
printing
Strong product development pipeline
Complements Heidelberg’s product offering as print
shops need digital equipment for low volumes
Partnership model
Focused strategy – digital opportunity2
Complete and competitive solutions for customer needs in
short runs
Integrated solutions from a single supplier, including
workflow / software and consumables
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Heidelberg update highlights
Strong position to benefit from market recovery
Focused strategy
Value creation roadmap
Marked recovery from current cycle low expected
Stabilisation of order volumes and revenues in recent quarters
Commitment to reposition Heidelberg on a path of sustained profitability
1
2
3
Value creation roadmap3
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0
200
400
600
800
1000
1200
1400
Q1 FY 03/04
Q2 Q3 Q4 Q1 FY 04/05
Q2 Q3 Q4 Q1 FY 05/06
Q2 Q3 Q4 Q1 FY 06/07
Q2 Q3 Q4 Q1 FY 07/08
Q2 Q3 Q4 Q1 FY 08/09
Q2 Q3 Q4 Q1 FY 09/10
Q2 Q3 Q4
(€m)
810 880
900
960
Incoming Orders Order Backlog
910
749
1,046 1,017 1,018
874
940
530
649
drupa 2004 drupa 2008IPEX 2006
609
678
Order development shows clear improvement trend
Source: Heidelberg; data based on Heidelberg fiscal year (FYE 31 Mar); actuals
596
Value creation roadmap3
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Strong orders from China, Brazil and a robust EMEA region
increased order intake by 11% in Q4 versus Q3 FY 2010
€ millionFY2009
Q3
FY2009
Q4
FY2010
Q1
FY2010
Q2
FY2010
Q3
FY2010
Q401/10/08
- 31/12/08
01/01/09
- 31/03/09
01/04/09
- 30/06/09
01/07/09
- 30/09/09
01/10/09
- 31/12/09
01/01/10
- 31/03/10
EMEA 232 223 234 203 254 265
Eastern Europe 77 30 46 56 70 77
North America 82 65 59 67 57 62
Latin America 43 18 26 36 36 53
Asia / Pacific 126 138 185 172 192 221
Heidelberg-Group 560 474 550 534 609 678
Value creation roadmap3
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Resilience of order intake from emerging markets
Value creation roadmap3
EMEA
47.6%
Asia / Pacific
22.5%
North America
12.4%
Latin America
6.0%
Eastern
Europe
11.6%
Regional split of order intake in FY2009 (€2,906m) Regional split of order intake in FY2010 (€ 2,371m)
EMEA
40.3%
Latin America
6.4%
Asia / Pacific
32.5%
North America
10.3%
Eastern
Europe
10.5%
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Key financials FY 2010 show positive trend in H2EBIT break-even (before special items) due to savings from cost-cutting measures
Value creation roadmap3
€ millionFY2009 FY2010
H1 H2
01/04/2008
-31/03/2009 H1 H2
01/04/2009
-31/03/2010 D to pY
D H2
to H1
Order intake 1,872 1,034 2,906 1,084 1,287 2,371 -18.4%
Net Sales 1,461 1,538 2,999 1,013 1,293 2,306 -23.1%
EBIT before Special items -45 -4 -49 -128 -2 -130 -81 €m
Special items 40 139 179 11 17 28 -151 €m
EBIT after Special items -85 -143 -228 -139 -20 -159 69 €m
Financial result -46 -73 -119 -49 -79 -128 -9 €m
Profit before Tax -131 -216 -347 -188 -99 -287 60 €m
Net profit/Net loss -95 -154 -249 -147 -82 -229 20 €m
Free Cash Flow -273 72 -201 -18 -44 -62 139 €m
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€ million
Sales
FY 2009 FY2010
EBIT
FY2009
FY 2010
01/04/2008
- 31/03/2009
01/04/2009
- 31/03/2010
01/04/2008
- 31/03/2009
H1 H2 01/04/2009
- 31/03/2010
Press 2,621 2,058 -35 -111 1 -110
Postpress 353 229 -31 -21 -10 -31
Financial Services 25 19 17 4 7 11
Heidelberg-Group 2,999 2,306 -49 -130
Special items 179 28
-228 -159
2323
Strong earnings improvement in H2 FY 2010
Value creation roadmap3
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Q1 FY2010 Q2 FY2010 Q3 FY2010 Q4 FY2010 FY 2010
-63-65
-13
11
FY 2010 EBIT of – €130m 1)
improved during the year
EBIT1 (€m)
Sales (€m) 514 499 578 715 2,306
Turnaround in sales and stricter cost management improve
profitability quarter by quarter in FY 2010
FY 2010
Source: Heidelberg quarterly reports
(1) EBIT before special items
Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010(FYE 31 Mar)
For FY 2011E, similar
EBIT seasonality
expected as in
FY 2010, albeit on a
higher earnings level
Value creation roadmap3
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Sustainable cost cutting lowers break-even point and
improves operating leverage during recovery
Pre-restructuring (2008) Post-restructuring – break-even
Volume related
reduction
Cost of materials
c. 46% of net sales
Net sales Cost of
materials
Other (net)
costs
EBIT
Attractive earnings
achievable at
lower sales
volumes
Expected mid-term op. leverage
Source: Heidelberg annual report (FY 2008), Heidelberg press releases (22/04/2010, 30/03/2010, 07/10/2009, 26/03/2009); financial data based on Heidelberg fiscal year
(FYE 31 Mar)
Cumulative impact
of targeted cost
savings by FY 2011
Net sales Cost of
materials
Other (net)
costs
EBIT Net sales Cost of
materials
Other (net)
costs
EBIT
Targeted
cost savings
by FY 2011
Value creation roadmap3
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Mid-term sales target to achieve €3bn+
Target sales mix
(€bn)
Sheetfed offset equipment market growth scenarios
FY 2010 Mid-term
target
€2.3bn
€3bn+
HDEHeidelberg
Equipment
HDEHeidelberg
Equipment
Other HDE 1
New
equipment
HDSHeidelberg
Services
HDSHeidelberg
Services
Source: Heidelberg; financial data based on Heidelberg fiscal year (FYE 31 Mar);
2010: actual; mid-term target: estimate
(1) Other HDE sales incl. Gallus, WEB, post-press, other new equipment
CAGR
09-14E
+12%
+10%
+8%
Source: The Boston Consulting Group, Jun. 2010 (calendar years; 2007-09: actuals;
2010-14: estimates)
Mid-term target: maintain at least new equipment market share of approx. 42%
Value creation roadmap3
3.0
3.4
3.8
4.2
4.4
2.42.5
2.7
3.2
3.6
3.9
3.7
3.3
2.8
2.62.5
4.7
4.0
1
2
3
4
5
2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E
Upside case Base case Dow nside case
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New segmentation implemented to better reflect strategic
positioning of Heidelberg
PostpressPress
Heidelberg ServicesHeidelberg Equipment
Systemservice
Heidelberg Spare Parts
Saphira Consumables
Prinect Software
CtP
Business Consultancy
Remarketed Equipment
Press
Postpress Commercial
Postpress Packaging
Linoprint
Financing Partners
Export Credit Insurance
Heidelberg Print Finance
Financial ServicesService
New
se
gm
en
tatio
nO
ld s
eg
me
nta
tio
n
Financial Services
Equipment ServiceEquipment
Stephan Plenz Marcel Kießling Dirk Kaliebe
Bernhard Schreier (CEO)
Value creation roadmap3
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New segmentation enhances focus on strategic priorities –
divisional view FY 20101
1) Preliminary reconciliation/pro forma
New segmentation reflects strategic positioning for Heidelberg going forward
Equipment: significant deterioration of sales volume and mix
Services: relatively stable sales volume, EBIT break-even achieved
€ million Sales EBIT
FY2010
01/04/2009 – 31/03/2010
Heidelberg Equipment (HDE) 1,271 -142
Heidelberg Services (HDS) 1,016 1
Heidelberg Financial Services (HDF) 19 11
Heidelberg-Group 2,306 -130
Value creation roadmap3
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Strict asset management to protect balance sheet in weak
economic environment
€ millionFY2009 FY2010 FY2009 FY2010
03/31/2009 03/31/2010 03/31/2009 03/31/2010
Fixed assets 1,008 924Shareholder's equity /
minorities796 579
Current assets 2,107 1,769 Provisions 973 938
thereof inventories 1,034 827 thereof provisions for pensions 154 225
thereof receivables from customer
financing273 212 Other liabilities 1,336 1,262
thereof trade receivables 451 396 thereof trade payables 181 132
Deferred tax assets,
prepaid expenses, other126 186 thereof financial liabilities 760 816
thereof deferred tax assets 92 151Deferred tax liabilities, deferred
income136 100
thereof prepaid expenses 18 18 thereof deferred tax liabilities 38 13
thereof assets - held for sale 16 17 thereof deferred income 98 88
Total assets 3,241 2,879 Total equity and liabilities 3,241 2,879
Value creation roadmap3
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FY 2010A
FY 2010A
3030
Tighter cash management
Net working capital in €m / as % of LTM sales 1 Mid-term target
R&D in €m / as % of quarterly sales
Capex2 in €m / as % of quarterly sales
FY 2008A
< 35%
≤ 5%
c. 2%
FY 2009A
FY 2008A FY 2009A
FY 2008A FY 2010AFY 2009A
Source: Heidelberg quarterly reports; financial data based on Heidelberg fiscal year (FYE 31 Mar); actuals
(1) Net working capital (“NWC”) includes inventory and trade receivables net of trade payables and advance payments; “LTM”: last twelve months
(2) Capex is defined as investments in intangible assets, tangible assets and investment property
Mid-term target
Mid-term target
1,288 1,291 1,330 1,193 1,261 1,360 1,308 1,2121,107
1,000 1,000 1,031
39% 40% 39% 45%39% 42%
35%34% 34%39%
35%33%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
57 54 5259
50 52 49
35 30 32 2830
7%
4%
4%
6% 5%6%
6%
8%
6% 6%8%5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Value creation roadmap3
51 44 5072
44 47 4859
10 16 1023
6%7%
2%3%
2%3%
7% 7%6%
5%
7%5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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Stable net debt level in recent quarters due to
strict cash management
1) Thereof approx. €291m from KfW facility
2) Maturity date July 2012
€291m
KfW Facility
€550m
Guaranteed Facility
€550m
Syndicated
Loan Facility
Total debt facilities of
€1.4bn2
€ millionFY2009 FY2010
Q1
FY2010
Q2
FY2010
Q3
FY2010
31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010
Convertible bond 304 306 308 310 0
Liabilities to banks and private
placement433 476 466 479 7921
./. Cash and cash equivalents 80 94 99 111 121
Net debt 657 688 675 678 672
Provisions for pensions 154 145 174 209 225
Value creation roadmap3
Strong cash flow performance ensured net debt increased only marginally
Sufficient funding in place following refinancing and amendment of facilities
KfW term loan has been €291m drawn for repayment of convertible notes
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Planned capital raising of c. €420m to strengthen balance sheet
Value creation roadmap3
Equity Ratio
Source: Heidelberg
(1) Pro-forma data based on financials as of 31/03/2010 and planned capital increase of c. €420m (before transaction costs)
With envisaged capital raising, Heidelberg aims for a mid-term leverage of ≤ 2.5x net debt / EBITDA
million EURFY 2010 Pro-forma
1
31/03/2010 31/03/2010
Equity 579 999
Financial liabilities 816 396
Other liabilities 1,484 1,484Total liabilities 2,300 1,880Total liabilities and equity 2,879 2,879
20%
35%
Mar-2010 Pro-forma
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Outlook - Management fully committed to reposition Heidelberg on a
path of sustained profitability – with attainable financial targets
Mid-term
targets
Sales €3bn+
EBIT margin >5%
ROCE ~15%
Net debt / EBITDA ≤ 2.5x
FY 2011
Sales moderate growth
EBIT break-even
Net profit / loss net loss
Free cash flow before
restructuring and interest1positive
Value creation roadmap3
(1) FY 2011 free cash flow after restructuring and interest expected „negative“
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Management fully committed to reposition Heidelberg on a path of sustained
profitability – with attainable financial targets
Key strategic drivers of Heidelberg development
Consistent focus on equipment and services, supported by cyclical upswing of end
markets
Focus on clearly identified growth opportunities in packaging printing, services,
consumables and emerging markets
Focused restructuring and capacity reduction effort
Tight cash management and resource allocation
Value creation roadmap3
Commitment to value creation
Sustainable capitalisation
Sustainable leverage with investment
grade credit characteristics
Target net debt / EBITDA ≤ 2.5x
Mid-term operating and financial targets
Net sales target of € 3bn+
Target EBIT margin > 5%
Target RoCE of around 15%
+
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Thank you for your attention!
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Investor Relations
Andreas Trösch
Head of Investor Relations
+ 49 (0) 6221 92-6020
+ 49 (0) 6221 92-5189(Fax)
Heidelberger Druckmaschinen AG
Kurfuersten-Anlage 52-60
69115 Heidelberg
Germany
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Disclaimer
This presentation contains forward-looking statements with respect to future results, performance and achievements
that are subject to risk and uncertainties and reflect management's views and assumptions formed by available
information. All statements other than statements of historical fact are statements that could be considered forward-
looking statements. When used in this document, words such as "may," "will," "should," "anticipate," "believe,"
"estimate," "expect," "intend," "plan," "project," "seek," or "target" and similar expressions, as they relate to
Heidelberger Druckmaschinen Aktiengesellschaft ("Heidelberg") or the market in which it operates, are intended to
identify forward-looking statements. Many factors could cause the actual results, performance or achievements of
Heidelberg to be materially different from any future results, performance or achievements that may be expressed or
implied by such forward-looking statements, including, among others, changes in general economic and business
conditions, changes in currency exchange rates and interest rates, introduction of competing products by other
companies, lack of acceptance of new products or services by Heidelberg's targeted customers, inability to meet
efficiency and cost reduction objectives, changes in business strategy and various other factors. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary
materially from those described herein. Heidelberg does not intend or assume any obligation to update these forward-
looking statements.