HEIDELBERG, Germany,
June 10, 2015 /PRNewswire/ --
- Investment in services, consumables, and digital printing
will lead to future growth
- Operating margin (EBITDA margin excluding special effects)
slightly higher despite comprehensive portfolio
optimization
- Low leverage (<2) and long-term financing framework lay
the foundations for further strategic reorientation
- Outlook for 2015/2016: Sales increase of 2 to 4 percent
forecast, with target EBITDA margin of at least 8
percent
Heidelberger Druckmaschinen AG (Heidelberg) largely completed
the Group's strategic reorientation in financial year 2014/2015
(April 1, 2014 to March 31, 2015). The focus during this process
was on realigning the Group's portfolio toward profitable areas of
business and growth sectors. The corporate structures have also
been adapted to dynamic changes in markets. This has had a further
significant impact on sales and results and has provided the basis
for profitable growth.
"We've made Heidelberg fit for the future," said Gerold Linzbach, CEO of the company. "The
reorientation will enable Heidelberg to enjoy sustained profitable
growth in the future."
Future growth will be generated primarily in the services and
digital sectors. Heidelberg continued to strengthen the services
sector in the past financial year through acquisitions (BluePrint
Products, Printing Systems Group, Fujifilm Sverige). The newly
acquired companies are set to generate sales of over € 100 million
from the current financial year 2015/2016 onward and will help
ensure sustainably profitable growth for Heidelberg following
complete integration. The Heidelberg Group's position in the growth
segment of digital printing was further strengthened with the
complete takeover of Neo7even and the Gallus Group and the launch
of a digital label printing machine.
Another aim is to further improve the company's profitability.
The reorientation of unprofitable activities such as those in
postpress, which was completed in financial year 2014/2015, will
improve the result by approximately € 30 million in the future. The
structures for offset printing have also been adapted to the market
environment, thus enabling Heidelberg to respond more flexibly to
market fluctuations and achieve cost savings in the low
double-digit million euro range.
"From the current financial year onward, we expect to
consistently achieve clearly positive net results," added
Linzbach.
2014/2015: Operating margin (EBITDA margin excluding special
effects) slightly higher despite portfolio
optimization
Sales in the 2014/2015 financial year were € 2.33 billion
(previous year: € 2.43 billion), in line with expectations as
adjusted at the half-year point. This decline of around 4 percent
was due to portfolio optimization, the associated sales of parts of
the company, and the effects of the general slowdown in growth in
China.
Despite the lower volume of sales, Heidelberg reached its target
of achieving higher operating profitability than in the
previous year. The operating margin was slightly up on the previous
year on a comparable basis due to cost savings. Net special effects
of around € 50 million, largely from reorganizing the company
pension scheme in Germany, led to
an improvement in EBITDA excluding special items to € 188
million in the year under review (previous year: € 143 million). At
€ 119 million, EBIT excluding special items was thus also
well above the figure for the previous year (€ 72 million). There
were special items of € -99 million for portfolio and
restructuring measures in the period under review.
Due to non-recurring expenses of around € 25 million resulting
from financing activities, the financial result was € -96
million. Pressure on the financial result will ease significantly
in the future due to lower interest payments for the new financing
instruments. The net result after taxes was
negative at € -72 million (previous year: € 4 million).
Equity was € 183 million at March
31, 2015 (previous year: € 359 million). A key reason for
this decline was the rise in pension provisions due to the
significant lowering of the discount rate for pensions in
Germany from 3.50 percent in the
previous year to 1.70 percent on the balance sheet date. In the
year under review, the decline in equity was partially compensated
by the reorganization of the company pension scheme in Germany, which was changed from a previously
defined benefit plan to a defined contribution plan. The
medium-term goal is to increase the equity ratio again by returning
to sustained profitability.
Low leverage (<2) and long-term financing framework lay
the foundation for further strategic reorientation
Free cashflow was € -17 million in the year under
review (previous year: € 22 million). This included one-time
payments for the Focus efficiency program of around € 45 million.
Active asset and net working capital management led to stable
net debt at a low level of € 256 million (previous year: €
238 million). Leverage was further reduced due to the accompanying
improvement in operating profitability. The ratio of net debt to
EBITDA was below the target level of 2, if the non-recurring
positive effects are included, the figure was 1.4 (previous year:
1.7).
"Heidelberg has a stable financial footing. With three pillars,
the financing structure is now well balanced and basic funding is
assured until 2022," said Dirk
Kaliebe, CFO at Heidelberg. "This long-term financing
framework provides a solid foundation for a further strategic
realignment of the company."
During the year under review, the financing structure was
optimized further. The financing portfolio consists of three
pillars comprising corporate bonds, a syndicated credit line, and
other instruments such as convertible bonds. The net debt of € 256
million is covered by basic funding until 2022. Heidelberg
currently has total credit facilities of around € 750 million.
Outlook for 2015/2016: Sales increase of 2 to 4 percent
forecast, with target EBITDA margin of at least 8
percent
For the current 2015/2016 financial year and in the medium term,
Heidelberg is striving for annual sales growth of 2 to 4
percent. As in the previous year, the share of sales is expected to
be higher in the second half of the financial year than in the
first half.
Assuming that the initiatives to increase margins and optimize
the portfolio take effect in the current financial year, the
company is anticipating an operating margin on EBITDA of at
least 8 percent of sales in the 2015/2016 financial year. The
Heidelberg Equipment segment is expected to contribute within a
range of 4 - 6 percent to this result and the Heidelberg Services
segment 9 - 11 percent. In the Heidelberg Financial Services
segment, the company will continue to primarily externalize
customer financing. The segment should continue to provide a
positive EBITDA contribution.
The planned earnings improvements together with the measures
aimed at the reduction and efficient utilization of the company's
capital commitment are intended to strengthen the capital structure
and keep the net debt at a low level that sustainably does not
exceed twice the result of operating activities before interest,
taxes, depreciation and amortization excluding special items
(EBITDA) (leverage).
As at March 31, 2015, the
Heidelberg Group had a global workforce of 11,951 plus 427
trainees (previous year: 12,539 plus 502 trainees).
For additional details about the company and image material,
please visit the Press Lounge of Heidelberger Druckmaschinen AG at
http://www.heidelberg.com.
The 2014/2015 annual report can be accessed at 7 a.m. CET on June 10,
2015 at http://www.heidelberg.com.
Other dates:
The Heidelberg Annual General Meeting will take place on
July 24, 2015.
The figures for the first quarter of financial year
2015/2016 are due to be published on August 12, 2015.
Important note:
This press release contains forward-looking statements based on
assumptions and estimations by the Management Board of Heidelberger
Druckmaschinen Aktiengesellschaft. Even though the Management Board
is of the opinion that those assumptions and estimations are
realistic, the actual future development and results may deviate
substantially from these forward-looking statements due to various
factors, such as changes in the macro-economic situation, in the
exchange rates, in the interest rates and in the print media
industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no
warranty and does not assume liability for any damages in case the
future development and the projected results do not correspond with
the forward-looking statements contained in this press release.
Further information:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49-(0)6222-82-67123
Fax: +49-(0)6222-82-67129
E-mail: thomas.fichtl@heidelberg.com
Investor Relations
Robin Karpp
Phone: +49-(0)6222-82-67120
Fax: +49-(0)6222-82-99 67120
E-mail: robin.karpp@heidelberg.com
