Heidelberg on course after first half of financial year 2015-16

Heidelberger Druckmaschinen AG (Heidelberg) systematically implemented the Group’s strategic reorientation in the first half of financial year 2015-2016 (April 1 to September 30, 2015) and made further progress during this period. The growth areas – services and digital – have undergone considerable expansion, while structures and processes have been made even leaner in the sheetfed business.

The takeover of the Printing Systems Group (PSG) increased service and consumables sales as planned. The five subsidiaries have been fully integrated into the Heidelberg sales organization and the management structure adapted accordingly. Half of the planned additional sales of some 100 million from the takeover have been generated after six months. Heidelberg is planning further acquisitions in this growth segment in the future and is expecting services and consumables to account for around 50 percent of Group sales in the medium term.

The greater focus of the research and development budget on digital printing is also becoming increasingly apparent. One example is the successful sales launch of the company’s new digital label press for the packaging market. Heidelberg has also succeeded in winning over a German start-up company from the food industry for its latest development in the field of 4D printing. Unveiling the first industrial sheetfed digital press at the drupa trade show next year will mark the next milestone in the digital strategy.

As for its sheetfed business, the company continued the planned efficiency measures with the aim of increasing flexibility and boosting future profitability. Full implementation by the end of the financial year will further improve the profitability of the sheetfed business, above all in the second half-year. The relocation of company headquarters and the Print Media Center Commercial from Heidelberg to Wiesloch-Walldorf marks the completion of a key structural measure. This will speed up processes in the future and further reduce annual operating costs for the sites. Together with the Print Media Center Packaging, Wiesloch-Walldorf now boasts the industry’s largest demonstration center for commercial and packaging printing anywhere in the world. The sale of the vacant administrative premises in Heidelberg has been contractually agreed and is expected to be recognized in profit or loss in the course of the financial year.

“We are systematically implementing our growth strategy. New business models and a dynamic portfolio have led to a significant increase in sales,” said Dirk Kaliebe, CFO and Deputy CEO of the company. “The reorientation of Heidelberg has also made us more flexible, which means we are better able to respond to market fluctuations and can further improve profitability,” he added.