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Speech by Bernhard Schreier

04/03/2006


Speech by Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG, on the occasion of the company's Ipex press conference on Monday, April 3, 2006 in Birmingham

Ladies and Gentlemen,

A very warm welcome to the Heidelberg press conference on the eve of Ipex. Another trade show with the usual high expectations, a whole host of innovations and - hopefully - a good turnout and high level of interest.

In previous years, the major trade shows have all taken up a particular theme or motto. Six years ago at drupa, it was "Digital drupa". And two years back in Düsseldorf, JDF and PDF were the words on everyone's lips. So what about this time round? Will we have a little bit of everything? Or even a completely new approach?

For years we've all been talking about the "transformation in our industry". Analyses have been carried out, forecasts made and advice given. This transformation is now complete, a process initiated and carried through by the majority of our customers. New business ideas have been born and put into practice. Faced with different economic conditions, customers have become more innovative. Nowadays, technology is not the only thing that needs to win over customers, nor will it be in future. No longer are innovations dreamt up exclusively by developers. It is now customers who are increasingly calling the tune. Their tentative suggestions have turned into demands, and justifiably so. Perhaps that will give rise to a new motto or buzz word... !

In Greek mythology, Aesop once confronted a bragging athlete with the words "Hic Rhodos, hic salta". This was simply a challenge to "produce the goods" there and then. In the context of Ipex, the concept could be expressed as follows: "Birmingham is the here and now and Heidelberg must demonstrate exactly what we are capable of as a solution provider." Both for our customers and in cooperation with them.
This sums up the Heidelberg approach at Ipex. Ladies and Gentlemen, I would like to expand on what we consider to be the three key aspects of the new market dynamics - customer focus, market focus and, last but not least, technology focus. These three aspects are closely connected, complementary and interdependent - in a positive sense.

Customer focus
As has already been mentioned, the print media industry - like many others - has gone through a real crisis over the past few years. Our customers - the print shops - were hardest hit and have had to evolve dramatically in a very short space of time. They have learnt a lot during this process and are now coming to us with concrete ideas.

Ever since the crisis, and in future too, offering solutions that meet market needs is the only way forward for print businesses wishing to achieve lasting success. More than ever, agencies are looking for expert advice from print specialists to fully exploit the potential for innovation provided by modern print technologies. The future focus for print communication will no longer be on "one-size-fits-all" production. Thanks to imaginative production concepts, including the options offered by cutting-edge surface finishing, print is becoming a premium medium. This gives our customers the chance to show off their brands to best effect, a concept already grasped by packaging printing. Production service providers in the packaging sector develop consumer-focused products - in consultation with their customers.

This approach should be encouraged. In ongoing dialog with our customers, we establish which presses the market needs and in what configuration. New technologies emerge based on customer requirements. It's hardly surprising then that the proportion of special units passing through our gates is on the increase. Heidelberg now customizes nearly one in four presses to suit specific customer requirements.

As you know, Ladies and Gentlemen, this year's event strategy - based on the motto "Connected for Success" - is once again to target specific customer segments in order to further improve this process. My colleague George Clarke, who is responsible for Heidelberg sales activities in the United Kingdom, will be going into more detail on this later. But this customer segment orientation is not sufficient in itself. Providing advice is important but listening is even more crucial. That's why our stand is dotted with "Expert Centers" where our customers will find specialist know-how and experts ready to listen to their questions.

We have deliberately given the Prinect Center a central position. Reliable production and greater efficiency in the printing process - with the resultant reduction in costs - are the requirements most frequently expressed by customers. I will be returning to this point later on.

Ladies and Gentlemen, I would now like to move on to the second point - market focus. Please bear with me as I now look at things from a more entrepreneurial viewpoint. For decades, we at Heidelberger Druckmaschinen have been demonstrating how quickly and flexibly we react to specific market changes. But a new, extra dimension made itself felt some time ago. I'm talking about the tougher competition resulting from globalization. Price sensitivity, price elasticity and price wars have become part of everyday life. As a result, we not only have to demonstrate the benefits of our solutions and improve our customers' competitiveness, but also move with the times.

Finally, I would like to turn to the technology focus. As I've already mentioned, technology has long since ceased to be something to be considered in isolation. Heidelberg has committed itself to launching innovations and developments only once the customer demand and, above all, the customer benefits have been established.

We announced most of our innovations back in February but allow me to take another look at a few of our highlights - starting with a new development not yet publicized. Here at Ipex, we will be unveiling a new 18,000 sheets per hour straight printing version of our medium-format press, the Speedmaster CD 74 (50 x 70 centimeters/19.7 x 27.6 inches). This series has previously produced 15,000 sheets per hour, but a complete package with a number of significant innovations now allows a stable production speed of 18,000 sheets per hour, even with continuous operation. The throughput is achieved over a wide range of printing stock, from lightweight paper to various types of card. Unique selling points include the innovative new suction head and automatic pile lifting control system, both in the delivery. With its 18,000 sheets per hour, the Speedmaster CD 74 is ideal for customers who combine short runs and regular longer runs. There are many benefits for commercial, packaging and label printers who work with a number of printing materials and runs of different lengths.

Another press in the Speedmaster medium-format series is the CD 74-5+LY-P-5+L. The name may be complicated but the concept is simple - taking productivity one step further. The coating options before and after sheet reversal get customers to the finishing stage much faster than before, achieving a time saving of up to 30 percent.

Heidelberg cold-foil technology is a way of applying cold foil using tried-and-tested offset technology. The cold foil module for the Speedmaster CD 74 and CD 102 series can apply stunning high-quality foil-based metallic finishes to all kinds of printing stock in grammages of 70-400 grams per square meter. Label, packaging and commercial printers can use this technology to satisfy the market's growing demand for high-quality surface finishes.

A world premiere - the Speedmaster SM 52 ten-color press
We will also be introducing the first ever ten-color press in the 35 x 50 centimeters (13.8 x 19.7 inches) format. The Speedmaster SM 52-10-P responds to the growing demand for even longer perfectors in this format. Back at drupa 2004, we launched the Speedmaster SM 52-8-P, the first long perfector in A3 format.

With the Speedmaster SM 52 ten-color press, commercial print shops can further rationalize the production of items with special colors or coatings in a single pass. Varnishing is particularly beneficial, speeding up postpress operations and protecting products more effectively.

As a result, this press is ideal for short runs with frequent job changes.

New Anicolor inking unit for the Speedmaster SM 52
Here in Birmingham, we will be presenting the Anicolor zoneless inking unit in a Speedmaster SM 52 four-color press for the first time. This unit will make it possible in future to produce even the shortest of runs using a standard offset workflow but with significantly better margins. Hardly any startup sheets are required - just 10 to 20 depending on the print motif. This means up to 90 percent less startup waste. The fact that no ink zone settings are required cuts makeready times by up to 40 percent. And the time saved increases press capacity by 25 percent.

With the Anicolor inking unit, the strengths of offset printing are available even for the shortest of runs. Commercially available plates and inks are used because the press works with the tried-and-tested Alcolor continuous dampening system.

From small to large - the success story continues for the Speedmaster XL 105 first unveiled at drupa 2004. We recently produced the 1000th printing unit for this new press generation at our factory in Wiesloch. It is earmarked for a press for one of our Italian customers.

Our prepress offering includes the Suprasetter A105, an entry-level model from our range of thermal CtP platesetters.

And we have no less than three postpress innovations for our customers.

Firstly, there's the new Stitchmaster ST 450 saddlestitcher which boasts high levels of automation plus impressive flexibility and productivity. The Stitchmaster ST 450 features mobile feeders fitted with servo drives which can be positioned at any point on either side of the saddle chain. It combines high performance with reliable quality, offering a capacity of 14,000 cycles per hour.

Next comes the new Eurobind 4000 perfect binder, a highly automated unit that produces up to 4,000 books per hour. Its modular structure means that it can be tailored to a customer's exact requirements. Precise spine preparation and a consistently high level of glue application ensure a quality end product. The Eurobind 4000 can be integrated into the Prinect end-to-end workflow system.

Rounding things off, the Diana X 115/135 folder gluer has a working width of 115 centimeters (45.3 inches) or 135 centimeters (53.1 inches) and features an impressive modular system that can be adapted to customer requirements and produces a wide range of carton types. The unit boasts a new safety and automation concept and integrated gluing and quality control. It processes board for folding cartons with grammages ranging from 200-900 grams per square meter and N, F, E and B flute corrugated board. Depending on the application, it can reach speeds of up to 650 meters (2,130 feet) per minute. At these speeds it can process up to 200,000 cartons per hour.

Ladies and Gentlemen, you will find details on this and other new products in the press folder.

One more thing to point out is that Heidelberg and IST Metz GembH, who joined forces for drupa 2004, will once again be teaming up at Ipex (Hall 4, Stand 4D50) to showcase applications from packaging and commercial UV printing.

Last but not least, we come to the workflow concept. The Prinect Center sits proudly at the center of our stand. Here we will be showing interested visitors a wide variety of components to improve production reliability and quality while also saving on costs. Examples include the Prinect Integration System and Prinect Pressroom Manager - both world firsts.

The Prinect Integration System enables centralized data management in print shops using JDF (Job Definition Format), courtesy of which all production processes in job management, prepress, press and postpress can be fully integrated in a workflow management system.
The Prinect Pressroom Manager is the world's first entirely JDF-based pressroom system capable of controlling and managing all the data required in print production. This automates and enhances key areas of the workflow.

At Heidelberg we set great store by optimal pressroom networking because the interplay of software and hardware is crucial when it comes to obtaining the best possible results. I would highly recommend taking a good look at what we have to offer in this and other areas during the show. Our experts are looking forward to meeting you. And we are confident that what customers see here will live up to their expectations.

I'd like to thank you for your time and hand over to my colleague George Clarke.

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