Heidelberg focuses on implementing its digital transformation
- Consistent expansion of contract business
- Rising share of recurring sales reduces dependency on economic cycles
- Sales and results targets for financial year 2018/19 achieved
- Cautious outlook for 2019/2020: Sales and profitability forecast at previous year’s level
Following the successful end to financial year 2018/2019, Heidelberger Druckmaschinen AG (Heidelberg) aims to vigorously pursue its digital transformation. The company is to become less susceptible to economic fluctuations in the future, primarily due to the expansion of innovative digital business models and the higher proportion of recurring contract sales these will bring. Approximately 30 contracts were concluded in fi-nancial year 2018/2019 and customer demand is rising, which is why Heidelberg is continuing to expand its subscription offerings. At present, customers are offered a fully inclusive package that combines equipment, services, software and consumables in one usage-based contract that runs over several years. In the future, customers will also be able to combine and utilize individual components from this offering over a defined period of time and in line with set standards. This will enable them to switch to usage-based service models in a phased process. In the medium term, approximately a third of overall sales and around two thirds of lifecycle sales at Heidelberg are to be generated on a sustainable basis through contract business.
Furthermore, Heidelberg is working on an industry platform that will offer print shops an automated, usage-based means of meeting their needs for software applications and consumables. Due to the ramp-up of the Heidelberg digital portfolio, primarily in the growing packaging segment, the number of installed systems will increase, thus generating considerable growth in stable, recurring sales of consumables, which will outstrip machine-only business. In China, for example, Heidelberg has, for the first time, joined with a leading packaging manufacturer to invest in a new online business model for designing, ordering, and printing custom folding cartons under the name ‘boxuni.’
“We are vigorously pursuing the Group’s reorganization. Thanks to the expansion of digital business models and the considerably higher share of recurring contract sales associated with these, we are going to get back onto a growth trajectory in the medium term and reduce our exposure to economic fluctuations,” explains Heidelberg CEO Rainer Hundsdörfer.