Thanks to the widespread agreement at the Annual General Meeting, during the financial year we undertook a capital increase that had a far-ranging and favorable impact on the Heidelberg Group, and will continue to do so in the future. It represents an important component of the Group’s refinancing. At the beginning of April 2011, we were thereby able to return the guarantees provided by Federal Government and Federal States, prior to maturity and in their entirety.
German stock exchange indices suffered slight declines at the beginning of the financial year due to the debt crisis in Greece and the related discussion concerning European rescue measures. Share prices subsequently continued their upward trend from the preceding year, rising considerably during the second half of the reporting year. This gratifying growth was supported by improved business prospects, especially as it turned out that economic growth continued under its own steam, even though the economic simulus packages had expired, and due to favorable business reported by DAX and MDAX companies. In December 2010, the DAX and the MDAX, respectively, successfully broke through the psychologically important 7,000 and 10,000 point levels. After March 11, 2011, the reports of the catastrophe in Japan caused a drastic slide in the market. However, the indexes rose again through the end of the financial year, with the DAX up by approximately 14 percent and the MDAX even generating growth for the financial year of some 27 percent.
By contrast, the Heidelberg share was subject to a fluctuating trend during the reporting period. Following publication of preliminary annual financial figures for financial year 2009/2010 and a successful exhibit at the IPEX trade show in Birmingham, UK, our share price rose by up to 63 percent during the first quarter of the financial year. Nevertheless, the price subsequently declined considerably in the run-up to the capital increase. The downturn was interrupted in mid-October, with Heidelberg’s share subsequently following the general stock market trend through the end of the reporting period. It closed at € 3.34 on March 31, 2011, slightly below the previous year’s closing price after adjusting for the dilution that had occurred.
|Figures in €
|Basic earnings per share1)||- 2.94||- 0.83|
|Cash flow per share||- 2.30||- 0.26|
|Share price – high2)||4.66||5.49|
|Share price – low2)||2.26||2.93|
|Share price – beginning of financial year2) 3)||2.43||3.51|
|Share price – financial year-end2) 3)||3.36||3.34|
|Number of shares in thousands4)||77,643||156,140|
|Market capitalization – financial year-end – in € millions||416||779|
A total of 155,286,868 new ordinary shares were successfully placed on September 24, 2010 within the framework of the capital increase. With a subscription price of € 2.70 for each new ordinary share, the issue generated total gross revenue of approximately € 420 million. The number of outstanding shares grew to 233,330,302 shares.
After Heidelberg had fallen to 52nd place in the index ranking of Deutsche Börse the previous year in the criterion “Market Capitalization based on the Free Float”, the Heidelberg share moved back up to 42nd place as of the end of the financial year. Market capitalization rose from € 416 million as of March 31, 2010 to € 779 million.
The average daily trading volume of the Heidelberg share rose as well. As a result, Heidelberg’s ranking by Deutsche Börse according to the criterion “Trading Volume” improved from 34th place the previous year to 26th place among the 50 companies listed on the MDAX.
The Heidelberg share continued to be rated on a regular basis by approximately 20 institutions. Whereas only 5 percent of analysts recommended buying our share a the beginning of the financial year, at the financial year-end 58 percent recommended buying; 26 percent recommended “holding” and only 16 percent recommended “selling”.
Beside our analysts’ and investors’ conference covering the annual financial statements, during the financial year we also organized a further capital market conference at the IPEX trade show. This major international trade show was held during May 18–25, 2010 in the UK, and demonstrated that the favorable trend in the print media industry is ongoing. On a guided tour covering the topics HEI Productivity and HEI Eco, analysts and investors were able to acquire information on Heidelberg’s numerous innovations. The Company additionally introduced itself at numerous capital market conferences. It also communicated with investors and analysts in a frank and transparent manner within the framework of road shows.