Professional Documents
Culture Documents
Bernhard Schreier
Chief Executive Officer
Heidelberger Druckmaschinen AG
Chairman of the Supervisory Board: Dr. Mark Wössner
Management Board: Bernhard Schreier, Vorsitzender · Dirk Kaliebe · Stephan Plenz · Dr. Jürgen Rautert
Principal place of business: Heidelberg · Amtsgericht Mannheim (competent registry court) – Commercial Register - HRB 330004 · VAT Number DE 143455661
Commerzbank AG Heidelberg (BLZ 672 400 39) Kto 192264001 IBAN: DE32 6724 0039 0192 2640 01 BIC: COBADEFF672 1
Dresdner Bank AG Heidelberg (BLZ 672 800 51) Kto 4 625 109 IBAN: DE98 6728 0051 0462 5109 00 BIC: DRESDEFF672
Sehr geehrte Aktionärinnen und Aktionäre,
Shareholders,
Shareholders’ representatives,
Representatives of the media,
Ladies and Gentlemen,
Market developments
Since our previous Annual General Meeting a year ago, there have been major
changes in the world, the world of business, the world of the printing press industry,
and thus the world of Heidelberg. For months, there has been nothing but doom and
gloom in the media. Even though we have now just about had our fill of these
depressing reports, I would like to once again briefly outline the macroeconomic
developments over the past twelve months. Without understanding these
developments, it is virtually impossible to correctly assess the current situation at
Heidelberg.
The global economy is experiencing its worst crisis since the Second World War,
and the capital goods industry its worst since the Great Depression 80 years ago.
Here in Germany – our domestic market and also our single most important market
– it is predicted that GDP will shrink by six percent. In other words, the volume of
goods and services will be down EUR 150 billion on a year ago. We are also seeing
similarly sharp declines in other industrialized nations.
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same period the previous year and, according to the VDMA – the German
Engineering Federation – we are still not through the worst.
This unprecedented collapse of the economy has hit the printing industry and thus
press manufacturers especially hard. The amount spent by the advertising industry
has a major impact on business at the mostly small and medium-sized printshops.
This industry accounts for around 60 percent of their capacity utilization and
earnings and therefore has a considerable influence on their investment behavior. In
times of crisis, however, this industry’s spending falls – almost like a law of nature –
and during this latest crisis it has plummeted. A decline in advertising expenditure of
between five and eight percent is expected for the current year.
As a result, printshops are currently in worse spirits than for many a year, and this
situation is not unique to Germany. According to a survey by the BVDM – the
German Printing and Media Industries Federation – business expectations are
currently a little brighter, but projected figures are still clearly in the red. This means
that far more printshops can still expect business to worsen rather than improve
over the next six months.
What does this mean for Heidelberg? Business was satisfactory up to the summer
of 2008. We did of course receive a boost from drupa, the leading industry trade fair
that is held every four years and took place at the end of May and beginning of June
2008, once again bringing trade visitors from around the world to Düsseldorf. This
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event gave us another opportunity to emphasize our excellent position in the
industry.
As you may recall, the second quarter of the financial year brought one of the critical
points of the financial crisis – the collapse of U.S. investment bank Lehman Brothers
– and we started to become very aware of our customers’ reluctance to invest and a
downturn in business.
As for quarters three and four, our customers slammed the brakes down hard on
investments. Taking the average for the two quarters, we only processed orders
worth EUR 520 million. This is the lowest level for over ten years and represents an
unprecedented freefall over these two quarters. By way of comparison, the average
figure for incoming orders during the same quarters the previous year was still
around EUR 940 million, that is to say almost twice as high.
For the financial year as a whole, this means that incoming orders slumped by 20
percent to EUR 2.91 billion. In the second half of the financial year, customers in
virtually all markets and regions put their planned investments on ice. Most of our
largest and most important markets were particularly hard hit. Order levels in the
U.S., the United Kingdom, and China plummeted by up to 35 percent compared to
the previous year and the sole reason for there only being a moderate decline of 6
percent in Germany was the fact that we were able to benefit more from orders
placed at drupa. Only a handful of smaller markets – such as Switzerland, Turkey,
and the Czech Republic – bucked the negative trend and helped slightly reduce the
overall decline. The slump affected both our Press and Postpress divisions to the
same extent.
Chart: Divisions
The Press division – our largest sector – covers all prepress, sheetfed offset, and
flexographic printing products, and our web offset sales activities. The extremely
unfavorable underlying conditions for our customers are the sole cause of results
being down on the previous year. As things stand, our market share has not
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decreased on any market. An important factor for the large-format segment, which
we entered only in the year under review, is that we now have reference presses in
our key target regions and customers are seeing for themselves just how well they
perform.
The Postpress division covers all postpress operations. The underlying economic
conditions have also hit postpress business hard, but one positive aspect has been
the comparatively high demand from packaging printshops for our die-cutters.
Incoming orders were also up for adhesive binders, thanks in part to new and
improved products.
We have grouped together our sales financing services in the Financial Services
division.
As a result of the much lower volume of orders, the order backlog at the end of the
financial year was also down on the previous year, clearly reflecting the way
business developed over the financial year under review. After the first six months,
as at September 30, 2008, it was still on a par with the previous year, at around
EUR 1.2 billion. However, in the second half of the financial year, ending on March
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31, 2009, the marked reluctance to invest almost halved it to just EUR 650 million.
At this point, we had orders to last us for the equivalent of 2.6 months, compared
with 2.9 months the previous year.
Inevitably, it was a similar story for sales as for incoming orders. At roughly EUR 3
billion, they were 18 percent down on the previous year and at their lowest level for
five years. There was an above-average decline in incoming orders and sales in the
North America, Eastern Europe, and Asia Pacific regions, but a comparatively
moderate one in the Europe, Middle East, and Africa region, which saw the
strongest sales.
In addition to the sharp drop in sales, a number of other factors weighed heavily on
the result. Chief among these were the high energy and raw material prices at the
beginning of the financial year, the cost of the series launch of our very large format
presses, and – at least during some phases – unfavorable exchange rate
movements.
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Given the extremely difficult underlying conditions, the refinancing requirements at
Heidelberg also rose sharply in the financial year under review. This was a further
factor in the worsening of the financial result from EUR -69 million to EUR -119
million. The end result was a pre-tax loss of EUR -347 million, compared to a pre-tax
profit of EUR 199 million the previous year. The company recorded a net loss of
EUR -249 million, also substantially down on the previous year’s net profit of EUR
142 million.
Our weak business situation and high outflow of funds in the first half of the financial
year affected the free cashflow, too. Following a positive figure of EUR 215 million
the previous year, it fell into the red by EUR 201 million. In the second half of the
financial year, however, the cost-cutting measures introduced helped boost the
inflow of funds.
Due to our poor business performance and the negative effects of business
operations, our financial liabilities also rose sharply. At the end of the financial year,
they were EUR 216 million up on the previous year at EUR 760 million. As a result,
our net financial debt – the difference between our financial liabilities and our liquid
assets – grew significantly from EUR 402 million to EUR 681 million.
Details on the individual items on the balance sheet and the profit and loss account
can be found in our Annual Report.
Based on the figures I have outlined and the short-term business prospects, the
Management Board and the Supervisory Board feel it is inappropriate to propose
paying a dividend for the financial year just closed. We need to transfer a large part
of the retained earnings to revenue reserves and carry forward the remaining
amount. This is the logical course of action given the poor underlying economic
conditions and will help avoid placing a further strain on equity. Having weighed
these concerns against the interests of our shareholders and the payment of a
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dividend, we believe it is vital that earnings this year are not distributed and trust that
you will understand the reasons behind this decision.
Market positioning
Ladies and Gentlemen, the past financial year was without doubt one of the worst in
the more than 150-year history of Heidelberg – if not the worst. And let me say
straight away that things will not get much easier in the current financial year.
I am reluctant to paint a completely black picture, though. There are some signs,
albeit small ones, of a light at the end of the tunnel. In April, May, and June,
incoming orders stabilized at the low level of the previous two quarters. It is currently
difficult to judge whether this is already a sign of the tide turning. I personally prefer
to take a cautious approach, all the more since higher incoming orders were mainly
down to a regional increase resulting from May’s China Print trade fair in Beijing.
This trade fair is the most important one for us in the region and we were very happy
with how it went. The downturn appears to have halted for the time being in China
and our business there is picking up again. This is not sufficient to compensate for
the decline in Europe and Asia, though.
A great deal has changed over the past twelve months. One thing has not changed,
though. Heidelberg is still setting milestones on the press market. Equipment “Made
by Heidelberg” still enjoys an excellent reputation in 170 countries around the globe.
Despite the extremely difficult conditions, we have succeeded in maintaining our
market share. One contributory factor has been our new very large format presses
for sheet widths of 145 and 162 centimeters, which we unveiled last year at drupa.
We have sold presses in this format class – which is ideal for packaging printing –
on all the key markets, including China.
Critics say that Heidelberg has fared worse than its competitors over the past
financial year. This is only true if looked at on a superficial level and is rather like
comparing apples with pears. We are the only one of the big companies in the
sector – three of which are based in southern Germany – to focus exclusively on
sheetfed offset presses. Unfortunately, this type of press is hit very hard and very
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quickly by economic downturns due to its great dependence on commercial printing
and the advertising market. Web offset presses, on the other hand, such as our
competitors also offer, take some time to feel the effects of a downturn.
Our new financing structure definitely plays a key role in this process. I would like to
stress one thing straight away. As soon as we saw that the financial crisis was
spreading to the real economy and would thus soon hit the print media industry, i.e.
in the summer of 2008, we focused our attention on possible cost-cutting measures
and our financing.
However, all these efforts proved inadequate in the face of the dramatic
developments on the markets – including the financial markets. Let’s make no
bones about it – Heidelberg, like many other companies, fared worse and worse as
the months went by. Unfortunately, banks are now much more cautious about
granting loans than before – for very different reasons. When extending credit lines,
they impose far greater demands in terms of creditworthiness – but companies
naturally tend to be less creditworthy in times of crisis. The economy has been
caught up in this vicious circle for months, and yet virtually every company will get
into difficulties sooner or later without loans – especially in times such as these.
Heidelberg is no exception – but we have managed to overcome these difficulties
through a combination of our own efforts and help from the state.
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Chart: Planned financing structure
The aim of the new financial structure was to stabilize and restructure our credit
requirements under fundamentally different underlying economic conditions. As you
can imagine, an undertaking of this kind is especially difficult in times of crisis. We
were quick to enter into intensive talks with our banks based on a detailed financing
concept that essentially corresponded to the previous financing structure in its type,
scope, and term. Despite the difficult underlying conditions, we succeeded in
transforming the existing financing structure into a new structure and safeguarding
the Group’s continued liquidity by securing loan pledges in principle from the banks.
The prerequisite for implementing this concept is that securities be provided as
stipulated by Economic Stimulus Package II.
The future financing structure, worth a total of EUR 1.4 billion, now runs over a
period of three years and originates from three sources. The first is a EUR 550
million loan with a 90 percent guarantee from the federal government and the states
of Baden-Württemberg and Brandenburg, the second a EUR 300 million loan from
the KfW – the Reconstruction Loan Corporation – and the third a EUR 550 million
syndicated credit line. The federal and state pledges provide us with the framework
to bridge the current phase, at a time when it is extremely difficult to secure loans
within the financial system. The banks’ loan pledges, coupled with the federal and
state support, thus gives us a solid financial framework.
Heidelberg was one of the first companies in Germany to receive help from
Economic Stimulus Package II. The decisive factor was that we fully satisfied the
criteria for inclusion in this program. These criteria are very strict and clearly defined
– and I therefore feel it is important to run through them briefly again.
There are two main conditions to be met. Firstly, companies who wish to be
considered must have been healthy before the date deemed to mark the start of the
crisis – July 1, 2008 – and Heidelberg was. Secondly, only companies that are
competitive in principle and have positive prospects for the future are eligible – and
Heidelberg does indeed have good prospects, Ladies and Gentlemen.
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I would like to add that the state has neither simply given us money nor subsidized
us at the taxpayers’ expense. The state guarantee and the indemnity against liability
under the KfW loan created the framework that enabled or – if you prefer –
facilitated our refinancing with our commercial banks. It goes without saying that we
are grateful for this help given the serious nature of the crisis, but a number of
defined criteria had to be met. We are not simply being given the guarantee and
indemnity, but are paying standard market charges.
It was no great surprise that our competitors did not exactly welcome this support.
Some even claimed it amounted to distortion of competition. This is most certainly
not the case, Ladies and Gentlemen. At the end of the day, little has changed in
terms of the overall financing volume.
Similarly, there are no grounds for assuming – as some have – that we will now
lower our prices. Why should we? The package has without doubt been a great help
in the current situation, but it has not made our financing any less expensive overall
– quite the opposite in fact. For example, the convertible bond, which in all likelihood
will have to be paid back prematurely next spring and is currently subject to an
interest rate of 3 percent, is being replaced by the KfW loan, which has an interest
rate more than twice as high. The other loans are also certain to prove expensive.
This makes further compromises on price impossible. As you can see, any talk of
distortion of competition is nonsense!
The new financing structure is certainly not the solution to all our problems, Ladies
and Gentlemen, but – to express it in metaphorical terms – although the sea is still
rough, the cargo is now once again securely stowed and the ship remains on an
even keel.
Capital structure
Now that we have secured external financing, we can set about strengthening our
equity capital base again. In the year under review, the company’s equity fell by
around EUR 400 million to EUR 796 million – mainly due to the high net loss. As a
result, the equity ratio dropped from 34 to 25 percent – a worrying development that
we are keen to turn around.
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This percentage is clearly too low and should be increased again to an appropriate
level in the medium term. In order to achieve this, we are open to discussions with
potential investors of any kind. The decisive factor to start with is not the form of
potential investors, but their strategic, long-term interest in Heidelberg – I repeat:
strategic, long-term interest. The crucial requirement is thus that investors intend to
make a long-term commitment to Heidelberg – probably like most of the
shareholders here today.
We would like to keep open the option of a capital increase for this purpose. We
already received authorization at last year’s Annual General Meeting to increase the
capital stock by a total of 30 percent.
Under item 6 of today’s agenda, the Management Board and Supervisory Board will
therefore propose increasing the capital stock by a further 20 percent or a total of
just under EUR 40 million by July 1, 2014 through the issue of new bearer shares.
The possibility of an equity increase is in no way an indication that the federal and
state guarantees and the KfW loan are inadequate. I am sure shareholders will
agree that they are indeed adequate. Now that we have reorganized our financing
structure, both the banks and the federal and state authorities expect us to improve
our equity capital base.
A possible capital increase can have a stabilizing effect in a crisis such as the
present one. The funds from a possible capital increase could reduce the existing
financial liabilities and thus the high interest payments resulting from the new
financing structure. This instrument will give Heidelberg the scope for financial
maneuver over the long term and will also enable it to grasp market opportunities
quickly and flexibly, and to cover the associated capital requirements in the short
term. Should you approve this increase, the possible capital expansion would
amount to 50 percent of the capital stock. This is the upper limit allowed by law and
should also be kept as an option in the current situation. You will have seen, Ladies
and Gentlemen, that virtually all companies affected by the crisis are asking their
shareholders to approve this measure. Achieving a good balance between equity
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and outside capital is without question in the interests of both the company and its
shareholders.
Strengthening our equity capital base and obtaining new investors also offers us the
opportunity to increase our share price on a sustainable basis. I am convinced that
an equity increase offers greater potential for boosting the share price in the medium
term than if we were to opt out of such a measure. This applies in particular if the
upturn takes even longer than expected to arrive.
At this point, I would like to say a few words about share buybacks. As you know,
we have implemented two buyback programs over recent years. We have often
been criticized for doing so given that the share price has fallen sharply since then.
However, I still firmly believe that each of the buyback decisions was right at the
time. The buybacks took place during a period when we passed on our net profits to
our shareholders in the form of a dividend. The developments on the financial
markets and in the real economy over the past twelve months could not have been
predicted, even as a worse-case scenario.
Personal perspective
I would now like to say a few personal words about the past twelve months and how
I see things developing.
I have now been working for Heidelberg for 34 years, including my training period
with the company. This is not the first crisis I have experienced here, nor the first in
my role as CEO. It is, however, without doubt one of the worst – and probably the
worst of all. We have come through previous crisis periods and I firmly believe we
will do so this time, too. As CEO, I see it as my responsibility and my duty – towards
our employees, our customers, our suppliers, and you, our shareholders – to ensure
this is the case.
The last crisis to hit the company was in 2001/2002 when the Internet bubble burst
and following the attacks of September 11, 2001. This coincided with the previous,
albeit much smaller, economic crisis. As a result, our net profit of EUR 200 million
turned into a net loss of nearly EUR 700 million in the space of just two years –
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among other things due to divestments and restructuring costs. Back then we also
did our homework, reviewing our business model and making the company more
streamlined and efficient.
When the economy picked up again, our restructuring was quick to bring positive
results. Within three years, we achieved a net profit 30 percent higher than in the
last year before the crisis.
Package of measures
When there was a further sharp fall in demand in the press industry in the first three
months of 2009, we once again took immediate action. At the end of March, the
Management Board therefore decided to step up the package of measures
significantly to achieve a further substantial reduction in capacities and structural
costs. The target of the cost-cutting program scheduled to run until 2011 was
doubled again to its current level of EUR 400 million. This makes shedding a further
2,500 jobs unavoidable. We will therefore end the year with 5,000 fewer employees
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than we started it, but such tough measures are necessary to safeguard the
remaining 15,000 jobs.
This process is very painful for Heidelberg and its Management Board. We are
aware of the personal dimension involved in every one of the job losses, but they
are unavoidable in the current climate. No alternative course of action is open to us.
Given that the scale of the job cuts is unprecedented at Heidelberg, it is highly
unlikely that they will be achieved without compulsory redundancies. The
Management Board has therefore been forced to terminate the agreement
safeguarding the company’s future with effect from June 30, 2009. This agreement
concluded with employee representatives was most recently extended in October
2007 and was scheduled to run until 2012. The opening clause of the agreement
provides for termination as a last resort to avoid jeopardizing the company’s very
existence. We are currently in intensive negotiations with employee representatives
on the exact form the job cuts will take.
Heidelberg has definitely never been the kind of company to see its employees only
in terms of costs, Ladies and Gentlemen. In times such as these, however, we need
to look much more closely at running costs than ever before. After material costs,
personnel expenses represent the second largest item in the profit and loss account.
As a result of the slump in business, these expenses have gone from being
equivalent to 32 percent of sales to more than 35 percent in the space of a year. Our
measures aim to cut personnel expenses in line with the drop in business.
Since the start of the year, around 2,000 employees – including temporary staff –
have already left the company. A further 500 job cuts have also been definitively
agreed. These are quite separate from the current negotiations with employee
representatives. 200 employees will leave the company in the course of the current
financial year and another 300 have taken partial retirement and have contracts that
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run until the next financial year. As a result, we have almost completely achieved the
target we set in October.
The cost-cutting package that will save us EUR 400 million by financial year
2010/2011 essentially consists of six measures.
The most important is reducing structural costs in corporate functions by EUR 105
million. This will be achieved by consolidating functions, optimizing processes, and
making the job cuts referred to.
Further efficiency increases will cut research and development costs by EUR 70
million without this jeopardizing our technology leadership.
Last but not least, we also plan to reorganize our Postpress division by combining
functions and relocating some production operations in the packaging section.
Significant progress has already been made with this package of measures. In the
financial year just closed we were able to make savings of EUR 84 million, and by
the end of the current financial year this figure should have increased to between
EUR 350 million and EUR 380 million.
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Ladies and Gentlemen, these measures are already having a positive impact. In
conjunction with the short-time working introduced at the beginning of the year, they
have enabled us to get close to achieving a break-even operating result despite the
extremely weak third and fourth quarters. Around 90 percent of our employees in
Germany are on short-time working, and we have provisionally extended this until
November. On average, they are only working half the normal number of hours each
month. However, we are putting this period of low capacity utilization to constructive
use. We are providing employees who are on short-time working with
comprehensive further training. An average of one in four employees has already
enrolled for a training course. The objective during these times of crisis is to prepare
staff for the challenges ahead.
Strategy
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small amount of growth. Advertising and packaging printing, that is to say our core
target segments, account for two-thirds of this volume.
Ladies and Gentlemen, there is no doubt in my mind that sheetfed offset printing
has a future! Forecasts indicate that printing volumes will be as high after the crisis
as they were before it. As a result, the press market as a whole can also return to its
pre-crisis level in the medium term. There will, however, be shifts in the existing
structures – both in regional terms and with regard to the individual segments.
Growth will strengthen on the large emerging markets such as China and India but
weaken in the large industrialized nations. Advertising printing will probably grow
more slowly, whereas packaging printing will continue to grow worldwide –
especially in developing countries and on emerging markets.
Heidelberg is ideally placed to benefit from all these developments. The market
launch of our very large format presses last year represented a major step towards
strengthening our packaging printing business. The presses, with a sheet width of
145 and 162 centimeters, are ideal for printing packaging in long runs. Unlike the
demand in the advertising industry, the demand for packaging – for items such as
groceries, pharmaceuticals, and detergents – remains comparatively stable, even
during economic downturns. Thanks to our dense sales and service network in the
large developing countries and on the major emerging markets, we are in an
excellent position. What’s more, Heidelberg presses enjoy an excellent reputation
the world over.
The fact that manufacturers of consumers goods are turning to ever more complex
packaging to make their products stand out is creating additional opportunities for
growth. In addition, the growing problem of brand piracy is boosting the demand for
counterfeit-proof packaging. Packaging printing solutions currently account for
around 15 percent of our total sales. In the medium term, we are looking to increase
this proportion to 25 percent. Advertising printing – still the largest segment – will
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then account for less than 50 percent. This sector currently still generates around
two-thirds of sales.
Chart: Consumables
The global consumables market is worth around EUR 8 billion, and Heidelberg
currently has a market share of around four percent. In the next five years, we are
looking to double sales in this segment, thereby substantially increasing our share of
the market. Given that sales potential depends to a great extent on product quality
and the number of presses installed, we expect particularly good growth
opportunities in this sector.
Chart: Service
We enjoy similarly favorable conditions in the service sector, which we have already
expanded substantially over recent years. No other company in the industry has
such a dense service network stretching across 170 countries worldwide. The target
is for consumables and services to account for around 25 percent of our total sales
in future.
We will also be expanding our global consultancy business. Printshops’ demand for
consultancy services grows particularly fast in times of crisis as they attempt to
optimize business processes and improve management. Our recognized position as
one of the leading companies on the market makes us the partner of choice for
customers in this sector. No other company in the print media industry can offer its
customers such a comprehensive range of solutions – from prepress software and
presses in all formats to postpress and printshop consultancy.
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Chart: Production for third parties
Manufacturing will also become more important to us in the years ahead. This is a
sector we will continue to expand, generating additional sales of EUR 100 million
over the next five years by manufacturing complex mechanical components for
companies from all kinds of sectors. As a manufacturer of precision machinery that
makes components with tolerances as low as a few thousandths of a millimeter in
some cases, we have extensive know-how in this field of business and currently
supply more than 70 customers.
A very important aspect of our strategy remains the expansion of our business on
large emerging markets that are enjoying strong growth, especially China and India.
Although these countries have not been spared by the global economic crisis, their
large national economies will benefit from above-average growth once the global
economy picks up again. We still see China as a growth market with particular
potential, and we are the only European press and folding machine manufacturer to
have our own plant here. It makes presses and postpress machines that are tailored
precisely to local market needs. Despite the economic downturn in China, the
demand for the machines we manufacture there has remained stable over recent
months.
Ladies and Gentlemen, we will be sticking to the overall strategy I have outlined – at
least in the medium term. It would definitely be a mistake to consider, much less
implement, a complete strategic reorientation during an economic and financial
crisis as serious as the current one. What we need is a calm but very decisive hand.
And that’s exactly what we have. We are absolutely determined to continue building
on our definite strengths, including those in areas that are much less susceptible to
economic fluctuations than commercial printing.
Outlook
Chart: Outlook
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So how will things develop in the short term, that is to say in the current financial
year? Regrettably, this question forces me to revert to a more gloomy tone. The
underlying economic conditions will remain difficult in the coming months. Even
though there are signs in some sectors that the low point has been reached or
maybe even passed, the general view is that the economic risks still outweigh the
opportunities. It is much more likely that we will need to wait until 2010 for a
significant turnaround.
The rise in financing costs, which also include the costs of the guarantees in
Economic Stimulus Package II, will also weigh on our financial result. Consequently,
we are also expecting a substantial loss for financial year 2009/2010.
Developments in Q1
The cautious outlook for the financial year is borne out by the way it has started.
Incoming orders appear to have stabilized at the low level of the previous two
quarters.
The good news here is that we can see initial signs of a low point having been
reached. As already indicated, however, we will need to wait and see how things
develop. We will be publishing concrete figures for the first quarter of financial year
2009/2010 on August 11 as planned.
Conclusion
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Ladies and Gentlemen, Heidelberg has a very difficult financial year behind it and
the short-term prospects are far from rosy. Nevertheless, I firmly believe that we will
overcome this crisis as we have done others in the past and will regain our former
strength in the medium term. We are currently making huge efforts to get things
moving in the right direction. During the period between 2004 and 2008, we
provided clear proof that we can emerge from serious crisis situations.
What’s more, we are sticking to our strategy of providing complete solutions that
offer printshops substantial production and cost benefits.
We will also continue to maintain our sales companies’ high level of expertise in
services and consultancy worldwide.
We still play a key role in the development of the press market. Even during the
crisis, we have maintained our market share worldwide.
Overall, Heidelberg is thus ideally placed to once again enjoy profitable growth once
the economy picks up – and it will.
We will emerge from this crisis as we have done before and start earning more
money again. We will also see our share price increase and once again be in a
position to pay a dividend, Ladies and Gentlemen.
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I firmly believe that we are on the right track to safeguard the company’s long-term
future as a successful company on the press market, and I would ask for your
support to ensure we achieve this. My closing message to shareholders is that
Heidelberg most definitely has a future!
Important note:
This Press Information contains statements about future development that are based on assumptions and estimates
by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion
that these assumptions and estimates are accurate, future actual developments and future actual results may differ
significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to
the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts
industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the
results actually achieved in the future will agree with the assumptions and estimates set out in this press release
and assumes no liability for such.
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