Good order situation at start of second quarter

08/06/2019

  • Demand for contract and subscription offerings continues to develop favorably – higher share of recurring sales
  • First quarter affected by reluctance to invest due to economic situation
  • Seasonal increase in net working capital hits free cash flow
  • Measures introduced to increase liquidity and safeguard profitability

Heidelberger Druckmaschinen AG (Heidelberg) has embarked on the second quarter of financial year 2019/2020 with a far better order situation, compensating in part for the weak first quarter in Europe in particular. The company is systematically continuing its digital transformation and expanding its innovative digital business models with a view to significantly reducing its exposure to economic fluctuations and increasing the share of recurring business in the medium to long term. Demand for the contract and subscription offerings that are the main focus of this strategy continued to grow in the first quarter of financial year 2019/2020. The medium-term goal is to increase the share of recurring sales – primarily from contract and subscription business – to around one-third of total sales. With customer demand rising, Heidelberg is expanding its subscription portfolio and is now offering additional contract options. At present, customers are offered a fully inclusive package that combines equipment, services, consumables, and software in one usage-based contract that runs over several years. In the future, however, they 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.

Towards the end of the first quarter in particular, the need for further strategic development of the company was highlighted by the increasing reluctance to invest, especially in western Europe, and associated shifts in sales due to the economic slowdown. Quarterly sales, EBITDA excluding restructuring result, and the net result after taxes, for example, were all down on the corresponding figures for the previous year. In mid-July, Heidelberg adapted its outlook for financial year 2019/2020 as a whole to reflect the changed business expectations.

Measures introduced to increase liquidity and safeguard profitability

Operational development in the first quarter affected by economic uncertainty

Seasonal increase in net working capital negatively affects free cash flow

Outlook for financial year 2019/2020

Important note

Thomas_Fichtl

Thomas Fichtl
Head of Corporate Public Relations and Press Officer Phone: +49 (0)6221 92 59 00
Fax.: +49 (0)6221 92 99 59 00

robin_karpp

Robin Karpp
Head of Investor Relations and Group Communications Phone: +49 (0)6222 82 67120
Fax.: +49 (0)6222 82 67129

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