||Heidelberg presented its Anicolor inking unit technology for the first time at the 2006 IPEX trade show. With Anicolor, hardly any start-up sheets are required – usually only 10 to 20. This means up to 90 percent less start-up waste. The fact that no ink zone settings are required reduces makeready times by up to 40 percent, and increases press capacity by 25 percent.
||Serves to improve both free cash flow and value contribution. Operating assets and liabilities are optimized in order to reduce tied capital and distribute it more efficiently.
||Printed products that do not appear regularly. These products include a diversity of font types and sizes as well as printing stocks – for example, brochures or catalogs.
||A relief printing process using inks with very low viscosity. Printing is effected by means of soft, elastic, and raised printing elements. Flexo printing is used especially in the printing of packaging and multicolor labels.
||The time required to prepare a machine for a specific work process. During makeready times, machines – printing presses or postpress machines – cannot be used for production purposes, and investments do not yield a return. Makeready times therefore are an important factor in cost accounting and calculation.
||All the manufacturing steps after the printing process in order to prepare a product – for example: cutting, folding, stitching, binding, and packaging.
||All the steps required to prepare the printing plate for the actual printing process, including the provision of text, graphic elements, images, and design.
||With its Prinect workflow software, Heidelberg provides the most complete software offering in the print media industry. Prinect comprises Management Solutions, Production Solutions, and Color Solutions. Customers thereby attain the greatest possible production security in color management with color measuring devices as well as closely coordinated measurement fields and seamless integration within the workflow.
|Remote Services technology
||Internet-based service platform which, among other things, makes it possible to analyze and inspect printing presses via a data link – without the need for customers to interrupt their production.
|Sheetfed offset printing
||Offset printing is based on the principle that oil and water repel each other. The printing and nonprinting areas are at nearly the same level. As the name indicates, the sheetfed offset process prints individual sheets as opposed to web offset printing, which prints paper rolls.
||Damaged, defective, or not yet rejected printed matter that arises in the printing process. Spoilage results from the makeready process as well as during the production run – for example, due to defective ink feeds and color registers or contamination – as well as during the finishing process.
||With the Heidelberg Star System print shops can employ environmentally friendly printing processes, because Star peripherals cover the entire system solution – from dryers and powder sprayers to the dampening solution supply, as well as from cleaning waste air to recycling cleaning agents.
||A tool used to visualize measures necessary in the development of all forms of technological expertise in connection with future products.
||Value contribution and ROCE are the central management control components used in value management at Heidelberg. ROCE is calculated by dividing EBIT by the average operating assets.
The average operating assets, which comprise all assets used in the generation of the EBIT, are part of our calculation. They are calculated by subtracting non-interest-bearing liabilities – which include both non-interest-bearing fundamental capital components as well as pro rata financial liabilities used in the refinancing of the Financial Services Division – from operating fixed assets and gross current assets.
In our calculations, EBIT comprises the result of operating activities and income from participations. Income from participations amounted to € –14 million during the financial year.
We include the cost of capital in the calculation of the value contribution via a weighted average cost of capital. The weighting is based on the share of the respective capital components. We base our calculation of the cost of shareholders’ equity after taxes on a risk-free interest rate of 4.25 percent, a market risk premium of 4.75 percent, and a so-called beta factor of 1.06. The aftertax borrowing cost rate is 3.15 percent. We apply a flat tax rate for the transition to pre-tax consideration. In the reporting year we lowered this tax rate from 35 to 30 percent. The calculation itself remained unchanged during the financial year.
EBIT less the cost of capital equals the value contribution, which reflects the expected return to the providers of capital on their invested capital.