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Heidelberg forges ahead with realignment – Consistent implementation of package of measures also delivers stability in Covid-19 crisis

06/09/2020

  • Comprehensive transformation to secure the future underway
    • Clear focus on core business and profitability
    • Agreement on reduction in force by about 1,600 jobs
    • Stable financial framework with sufficient liquidity
  • Heidelberg provides comprehensive support for customers in times of crisis
  • Preliminary results for 2019/2020 financial year confirmed
  • Outlook for current financial year is hampered by the current uncertain environment
    • Marked decrease in sales expected due to Covid-19
    • Margin at least level with prior year
    • Rapid recovery of print volume in Chinese market

Heidelberger Druckmaschinen AG (Heidelberg) is making rapid progress with the transformation initiated in November last year to increase profitability, competitiveness, and safeguard the future: Following the financial stabilization through the retransfer of €380 million from the trust assets of Heidelberg Pension Trust e.V. in March 2020 and the decision to divest from loss-making activities by the end of 2020, significant structural measures are now being implemented. The company has already agreed with the works council on socially responsible solutions for the reduction of around 1,600 jobs worldwide. In June, a new operating model was launched which, with fewer management levels, leaner processes and a significantly improved customer focus, enables more efficient management of the profitable core business. Overall, the action package is designed to improve Heidelberg's profitability by € 100 million. Heidelberg also believes that the program will strengthen its position in the ongoing difficult market environment caused by the Covid-19 pandemic.

“2019 was the year of clarity and consequences for us. Even before the Covid-19 crisis, we launched the most comprehensive restructuring program in our recent company history to strengthen Heidelberg's profitable core. Now we are doing everything in our power to further stabilize our financial base and become sustainably profitable in the medium term. We are pressing ahead with the implementation of this program in order to make Heidelberg a better company. We have already reached important milestones. Particularly in times of crisis, this also helps us to be a strong partner for our customers' side and to actively support them," said Rainer Hundsdörfer, CEO of Heidelberg.

Heidelberg’s strategy is clearly focused on boosting profitability, and consequently on the markets and market segments which are profitable and in which the company holds a leading global position. Incoming orders in the Asia/Pacific region thus in-creased in total to € 683 million despite Covid-19-related shortfalls in the fourth quarter (prior year: € 658 million). Much of this is due to orders from China, where Heidelberg already has a large presence to take advantage of growth opportunities with an 850-strong workforce. This figure will increase in the future to over 1,000 employees. As the world’s largest packaging printer supplier, Heidelberg is also ideally placed to tap into the potential of major growth markets such as China in that segment. By now, Heidelberg makes some 50 percent of its revenues from offset machines in this sector.

Futureoriented technology in the shape of digital solutions is ensured by Heidelberg’s Smart Print Shop, which systematically enhances process digitization to close automation gaps, advance digital process integration as well as exploit the potential in digital data and artificial intelligence.

“We have clearly set our sights on profitability. That is our strategic roadmap and the path we will consistently stick to going forward. This will put us in a position to benefit substantially when markets recover,” said CFO Marcus A. Wassenberg.

Digital offerings, services and interfaces already enable Heidelberg to provide comprehensive support for its customers in the Covid-19 pandemic. Heidelberg has launched a dedicated program to support customers: Tagged #We4You , Heidelberg is offering digital solutions that enable customers to keep doing business successfully through the current crisis. The packaging printing industry in particular is regarded as systemically relevant during the crisis and had to cope with increasing print volumes during this period. This is where Heidelberg helps to ensure smooth and reliable production. Additionally, Heidelberg keeps customers up to speed on key market developments with its PMI Climate Report.

Preliminary results for 2019/2020 financial year confirmed
Outlook for current financial year is hampered by the current uncertain environment; rapid recovery of print volume in Chinese market
Further Information
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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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