The world’s biggest press manufacturer Heidelberg has outlined its new growth strategy for the next five years, which includes technology leadership and digital transformation.
Heidelberg says the reason for its current sustained profitability has been from a rigorous restructuring program and a shakeup of its portfolio. Despite a slight fall in sales, EBITDA doubled from the 2012 level to €179m. Following a huge loss of €230m five years ago, the company recorded a net profit after taxes of €36m in 2017.
Rainer Hundsdörfer, CEO, Heidelberg says, “Over the next five years, Heidelberg will once again become a leading light in the sector, enjoying strong growth and profits. We have defined the relevant success factors and have already introduced initial measures. This marks the start of a new era of growth for Heidelberg.”
The first of the two key strategies for Heidelberg for the next five years is its technology leadership based on constant innovations which focuses on customer benefits and aimed at improving productivity while also cutting costs in all print shop processes by maximising efficiency.
[Related: Heidelberg achieves best sales since GFC]
Heidelberg says it is looking to play a pioneering role in digitisation (Simply Smart/Smart Print Shop) with its Push to Stop concept, and in industrial digital printing for the packaging market with the Labelfire and Primefire product lines. The objective here is to double the market share in digital printing from the current level of less than five per cent to as high as 10 percent and generate additional sales potential amounting to around €200m in the period to 2022.
Its second strategy is digital transformation, including the digitisation and integration of the previously separate areas of equipment, software, services and consumables with straightforward pricing of all offering for customers.
Heidelberg says the entire work process at the customer’s print shop will be addressed from a single source using a single e-commerce sales platform. This will reduce complexity and costs for customers while also boosting their productivity.
Heidelberg says its aim for the next five years is to increase the company’s market share for consumables from the current level of five percent to just under 10 percent while also leveraging additional sales potential of €250m. Part of this strategy is the takeover of Fujifilm’s coatings and pressroom chemicals business in the EMEA region, which represents a sales volume of some €25 million. It will take effect as of July 1, 2017. Heidelberg is using this takeover to expand in the attractive growth segment for consumables.
The transaction is another step in pursuing the company’s growth strategy of developing a fully comprehensive cross-sector portfolio that is geared toward specific customer requirements and further strengthens Heidelberg’s market position for coatings and pressroom chemicals.
Group sales of around €3bn are being targeted with many specific measures in the period to 2022. The company has set its sights on a further significant improvement in profitability, with EBITDA of €250m to €300m and a net profit after taxes of over €100m. Sales in financial year 2016/17 were just over €2.5bn, EBITDA at €179m and the net result after taxes at €36m.
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