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Trend Analysis: Heidelberger Druckmaschinen

Optimism despite poor numbers

CEO Bernhard Schreier announced on July 18th, 2012 that he will leave Heidelberger Druckmaschinen AG by end of the year 2012. The Supervisory Board appointed Dr. Gerold Linzbach as the new CEO by September 1st, 2012. Mr. Linzbach is a very experienced and well accepted  top-manager but without experience in the printing industry sector. Is this a good or a bad indicator? We don’t know yet but we will briefly re-think Heidelbergs situation.

Our take, reflecting Heidelberg’s annual press conference (June 14, 2012).

Status quo:
• The 2011/2012 result was overshadowed by a loss of around € 230 million.
• After all, with EBITDA of 90 million euros and operating profit of 3 million € is located almost at the same level like last year.
• In essence, a very self-conscious top-management team presented at the annual press conference on 14 June 2012 those bad figures by showcasing new efforts. (See our live tweets below)
• At drupa 2012 Heidelberg was a match winner getting a hugh impact on the business results in the second half of fy 2012/2013.
• So in fact Heidelberg is again in a good position to recover and become profitable.

Dilemma:
The economic and financial press in Germany and even by investors/shareholders didn’t got that message in form of good news.

At the press conference from the present economic journalists and news-initiated from negative headlines. Excerpts: “dry spell at Heideldruck persist” (Reuters / wiwo.de), “Printing Crisis: Heidelberg put off shareholders” (FTD), “Another losing year / downturn underestimated” (Handelsblatt), “Why no turnaround in sight ‘( Manager Magazine), “Heidelberg continues in the red” (Focus Money / Focus Online).

Investment experts published, Heidelberg has on the way to the turnaround still a rocky road ahead. “Market participants remain skeptical despite drupa 2012 and focus their pieces and throw on the market. (…) THE SHAREHOLDERS continues to advise on an investment. “Heidelberg’s share price had landed on penny stock level and sank on 14 June 2012 at market close again from almost one euro.

Challenge:
The economic and financial sector does not seem to trust Heidelberg (anymore) to turn back the tax and, particularly for investors to create interesting opportunities. The same goes for how the so-called Global Industry Analyst scene for years hardly still busy with Heidelberg technology, but primarily only with digital printing technology and players such as Canon, HP, Kodak, Konica Minolta, Ricoh and Xerox.

Suggestions:
The new CEO, starting at September 1st, 2012 has to bring together business, organizational, technical and market-related facts and issues. And he should pro-actively communicate about it! The perception of Heidelberg is not balanced in the right way. Means: Heidelberg executives/employees, customers, analysts and investors experience Heidelberg in a totally different way. This problem couldn’t be solved by the brand management only (which is already excellent).

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Tweets by zeitenwende007

Joining this morning the #HeidelbergFY press event. Curious about results and outlook@Heideldruck
10:02 AM – 14 Jun 12 via Twitter for iPad · Details

Top Facts&Notes in 21 Tweets – Published on June 14th, 2012 in real time

#Heidelberg CEO Bernhard Schreier: Last years results are not sufficient. But we made it. Even if the market situation was bad!

10:08 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Marcel Kiessling is now responsible for sales (worldwide). He keeps the service division. More work, more success.

10:11 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Financial situation of Heidelberg is in a good shape, CFO Dirk Kaliebe reported.

10:13 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Efficiency program Focus 2012 is working well. Revenues shrinking, but EBIT is stabil. Free cash flow is better than expected.

10:17 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg North America had a come back. Asia Pacific revenues grow and are as strong as EMEA. BRIC markets cover 46 % of total revenues.

10:21 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg But in total net loss after taxes -230 mio. Euros. Networking capital management is working well and hits expectations.

10:24 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Equity balance of 23. Net debt went down to 243 mio. Euros.

10:28 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Marcel Kiessling started already the reorganization of the global sales strategy to hit the structural changes in the market.

10:32 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg In more than 30 sales units Heidelberg owns 4500 sales and service professional, addressing 170 countries. Focus on BRIC markets

10:34 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg #China and #Brazil have the strongest growth and a top prority for Heidelberg. But Western markets keep stabil in the future.

10:36 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Services efficiency will be synchronized according to the regional changes.

10:39 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Consumables become more important. HEI market share will go up from 4,5%to 7%. Market potencial in total 8 billion Euros

10:41 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Will the print market be a stabil biz in the future? Stephan Plenz stated that HEI solutions enable to extend biz opportunities.

10:44 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg HEI customers are always able to run a profitable biz and to monetise their investments to be able to reinvest in innovations.

10:46 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Digital Printing has a great relevance for Heidelberg. Focus: Premium applications in commercial, packaging and label printing.

10:52 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Collaboration with Landa could enable hugh areas of growth as well as HEI solutions for 3D printing and printed electronics.

10:55 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg “2008 ist uns der Himmel auf den Kopf gefallen”, stated CEO Bernhard Schreier. Great quote! @Heideldruck

10:57 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg drupa delivered stimulation for graphic communications. Germany and China are now the biggest markets measured by investments.

11:03 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg post drupa outlook: 2nd half of FY2012/2013 will become the stronger period and cover 60% of the HEI revenues.

11:07 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Biggest risc will be the development of the global economy and the impact on the media biz. HEI will be flexible enough to react
11:09 AM – 14 Jun 12 via Twitter for iPad · Details

#Heidelberg Conclusion: HEI could hit the needs for quality oriented Entrepreneurs for innovative print communication in the digital age.
11:19 AM – 14 Jun 12 via Twitter for iPad · Diesen Tweet integrieren

POV on reporters

#Heidelberg Some of the print/newspaper editors do not understand the print world. How could they deliver good reports about @Heideldruck ?

11:39 AM – 14 Jun 12 via Twitter for iPad · Details

Background/Facts

Heidelberger Druck ‏@Heideldruck

Heidelberg Financial Year 2011/2012 http://bit.ly/KIpIy8

Retweetet von zeitenwende007

11:09 AM – 14 Jun 12 via web · Details

Click here if you want to explore Heidelberg by Video

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