German press giant Heidelberg held its AGM for the 2016-2017 financial year announcing to its shareholders the company is aiming for group sales around €3bn by 2022, up by 20 per cent from the current €2.5bn.
Rainer Hundsdörfer, CEO at Heidelberg presented the company’s digital strategy, outlining future direction for Heidelberg with a strategic focus on technology leadership, digital transformation, and operational excellence.
Following what the company says is the successful turnaround with a return to sustained profitability, the company has set its sights on a further significant improvement in profitability, with EBITDA of €250 to 300m and a net profit after taxes of over €100m. Sales in financial year 2016-2017 were just over €2.5bn, EBITDA €179m, and the net result after taxes €36m.
[Related: Heidelberg reveals digital strategy]
Approval from the company’s shareholders was needed for six of the seven items on the AGM agenda, including Oliver Jung’s election to the Supervisory Board. All items on the agenda were approved with a clear majority.
Earlier this year, Heidelberg announced its digital strategy for the next five years focusing on technology leadership based on constant innovations focusing on customer benefits and aimed at improving productivity, while also cutting costs in all print shop processes by maximising efficiency.
The event was held at the Congress Center Rosengarten in Mannheim with 1,600 shareholders attending. Heidelberg says close to 30 per cent of the company’s share capital was represented at the event.
As market leader in offset presses Heidelberg was badly hit by the aftermath of the GFC, as printers around the world fell into liquidation, and as banks closed their funding lines. The company had to be supported through the crisis by federal and state governments.
Its turnaround strategy with a focus on digital, partnerships and new market opportunities was initiated by former CEO Dr Gerold Linzbach. It is still market leader in offset presses, but the numbers manufactured are far less than in the pre-GFC era.
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