(The spoken word applies)
Ladies and Gentlemen,
Welcome to Heidelberg at CeBIT! That's a phrase you'll have
heard before, but this year it has a new, different meaning. That's
because our participation in the world's largest computer trade
fair has changed radically. And there's good reason for this.
Heidelberg at CeBIT. Two or three years ago, we still looked
like something of a niche player here in Hanover. Now our stand is
five times as large.
Heidelberg at CeBIT. Decisive changes to our product
portfolio have broadened our client base.
When we look back now, we can see that our entry to the
digital environment came around ten years ago and, more
specifically, with the Quickmaster DI at the drupa exhibition in
1995. These years of exploration in the graphic arts industry -
during which none of our competitors followed us - have now paid
off. We recently delivered the 1,500th Quickmaster DI, our digital
offset press, to a customer in the UK. For Heidelberg this means
that we have gained not only acceptance, but also experience in the
digital environment of our industry.
At this point I would like to quote Charles Pesko, CEO of CAP
Ventures, one of the leading market research companies and analysts
in the sector. As he put it, "Heidelberg basically redefined the
cost-effectiveness of offset printing in the nineties. DI
technology provided general commercial printshops with a simple
point of entry to the quick print market" with minimum turnaround
This positive entry to the sector not only encouraged us, it
also led us to undertake other activities. For example, Heidelberg
made its entry to the digital black/white market through its
acquisition of the Office Imaging division of Kodak, and has
greatly exceeded even its own expectations by selling 2000
Digimasters in just 20 months.
The next, logical step is to expand our activities towards
digital color printing. In September of this year, the NexPress
digital press, the result of our joint venture with Kodak, will be
released for sale at the Print exhibition in Chicago.
Heidelberg at CeBIT. Not just a new meaning, but also a whole
new look. With a stand area of around 900 square meters in Hall 1,
we've changed the way we look. And we haven't just given ourselves
a face lift, we've taken a new strategic direction! We'll be
demonstrating an integrated print and media company focussing on
data management and data handling.
Heidelberg at CeBIT. We're playing a decisive role in
developing interfaces to the Internet for the graphic arts
industry. And we're addressing the companies from the graphic arts
industry in this sector in particular, since more and more printers
are looking at these issues. But we're not just focussing on the
printers. We're also talking to creative professionals and
agencies, i.e. the people at the beginning of the process.
Heidelberg at CeBIT. We're in favor of open interfaces in the
industry because we're convinced that isolated solutions lead to
customer dependence, thereby restricting their room for maneuver.
Here, we're clearly demonstrating our commitment to the
graphic arts industry. Well before CeBIT, we acquired a software
package from CSP of Karlsruhe which now enables us to break up
monopoly positions in the interests of our customers. With this
tool for the Digimaster, we're in a position to process different
industry standards, particularly those of computer centers. This
also gives us the opportunity to compete for new investments in
over 12,000 systems which have previously been closed to us because
of proprietary data formats and which are installed all over the
world by our rival Xerox.
We're already delighted with the print quality of the
Digimaster and the unique features this offers. The new software
tool allows us to install the Digimaster in a wide range of
different sectors, including commerce, banking and insurance.
Now I'd like to make a few comments on the strategic
importance of this new situation. It is important to better control
the development of the open standards we have promoted. We need
data formats that can be used as a basis for all applications and
support open interfaces. We're already on the right lines with PDF
(Portable Document Format) and JDF (Job Definition Format).
Heidelberg at CeBIT. We're no longer in a niche market. We
offer completely digital solutions and are now considerably closer
to our aim of achieving a 30 percent share of the digital printing
market. Indeed, Ladies and Gentlemen, we have made more progress
here than even our own forecasts predicted. With a market share of
over 16 percent, we're already half way there (after just two
years) and are set to win a greater share even more quickly.
Heidelberg at CeBIT: It's the software that makes the
The processes of change in the graphic arts industry show
just how important digitization already is and how important it
will be in the future. If you look at the printing process as a
whole - i.e. prepress, press and postpress - the actual printing
stage only takes up around a third of the total time. As a result,
the focus has been shifted to the prepress and postpress stages.
The reason is that the number of orders is rising, but print runs
are getting shorter. And this is a growing trend. So that's why
we're committed to these areas; that's why we're committed to the
integrated printing and media company; and that's why we're making
a stronger appearance at the CeBIT exhibition.
Many printshops are awaiting the arrival of a universal
provider of software in the graphic arts industry with a complete
product portfolio, high quality levels and one eye firmly on the
future. So, with our commitment to software, we're not only
securing our core business and the future of the printing industry,
we're also opening up new areas of growth for ourselves.
The graphic arts industry invests some 1.1 billion
D-Mark each year in business workflow alone (costing, order
management, PPS (production and planning systems)). Most of this
investment - over three-quarters of the total - is made by small
and medium-sized general commercial printshops. In Germany alone,
medium-sized printing companies - those with between 10 and 100
employees - invest some 250 million D-Mark per year in PPS
software (according to a study by Pragma IS GmbH in 1999).
Heidelberg at CeBIT: And what are we actually doing in
concrete terms? We're getting printing and media companies in
shape. We're actively supporting our customers when it comes to
- Being available 24 hours a day
- A comprehensive technology portfolio and e-portals
- Customer information tools (e.g. web sites and call
- Continual support with consumables
- Advise with software solutions
- Remote maintenance for complex systems
The printshops of the future will have to go beyond their
traditional activities and offer their customers additional
services such as optimized combinations of hardware, software and
It is particularly important to make conscious, sensible use
of the Internet for the graphic arts industry so as to improve
defined flows. With short print runs and faster availability, there
will be an increasing number of print jobs handled over the
Internet. This is an important area for marketing. Business cards
and headed paper can be selected by the customer, proof-read and
paid for directly over the Internet. The advantage is added speed
and lower cost.
Here are some statistics which highlight the size of the
field opening up before us: The variable content of digital
printing is currently at a level of around 6 percent. This means
that the potential of a digital press has not been fully exploited
by any means. We're doing some pioneering work here, and are
supporting our customers as they tap this potential.
Heidelberg at CeBIT. I've already mentioned "brainware", our
knowledge, which is something we believe in passing on. Let me
remind you, Ladies and Gentlemen, of our two year advanced Print
Manager MBA course. The new Print Manager certificate will be
awarded by the Print Media Academy from the autumn of 2001. This
meets the needs of our customers who do not have formal
qualifications but have many years of professional experience.
Now let me come to some details about the products
As I've already mentioned, Heidelberg has sold 2000
Digimasters in just 20 months, and the second 1000 of those were
sold in only eight months. Here at the CeBIT exhibition, Heidelberg
will be presenting additional equipment for the Digimaster. This
includes the Imagedirect 665 high-performance scanner for the
prepress stage and the Inserter and the Perfect Binder for the
finishing stage. The ImageSmart 1.5 software for document
management is now available too.
The status which digital finishing now enjoys at Heidelberg
is demonstrated by the fact that we have our own site in
Mühlhausen near Stuttgart. We've taken some major steps
forward here, and have considerably improved the workflow. The
performance of the Digimaster in the finishing stage is another
factor which makes it stand out from the competition's products.
The Inserter adds colored documents to a black/white print
job without slowing the workflow down. This means that print speeds
of 110 pages per minute can still be achieved on different colored
paper. The Perfect Binder facilitates the production of brochures
and books up to 40 mm thick in different formats.
You can see for yourself how well the machine handles
personalized print jobs when you pick up your personal Marco Polo
guide at the end of this press conference. Alternatively, you can
collect your copy from our stand. You are naturally all invited to
visit Heidelberg in Hall 1. Our stand is so big this year that you
won't need any maps to find us!
Heidelberg is now forging ahead in color digital printing,
which brings me to my last point. NexPress, our joint venture with
Eastman Kodak, is now well underway. At our CeBIT stand you can see
the NexPress 2100 in action. The press will be released for sale at
the Print 2001 exhibition in Chicago this September. Heidelberg
will start by installing the press in various test markets in the
USA and Europe. Once this phase is complete, world-wide sales will
begin on a step by step basis. The fully digital color press is
being produced in Germany at our Kiel site.
In view of the high demand for small, high-quality,
personalized color print runs, i.e. around 200,000-500,000 copies
per month, I am very optimistic that Heidelberg will manage to
become market leader in digital color printing in the next five
years. In any case, the NexPress 2100 is the optimum press with
which to meet the demands of the market.
By way of conclusion, I would like to add that Heidelberg is
setting new standards with this press, in that it was developed in
just four years from first sketch to market launch. So you can see
that we really are a standard bearer in terms of quality, service