The world’s biggest offset press manufacturer Heidelberg says it is back on track to build a sustainable business following six of the most tumultuous years in its history. Heidelberg is aiming for an eight per cent EBITDA in financial year 2015-16, building on its first profit since the onset of the GFC achieved this year, which came in at a miniscule €4m on sales of €2.43bn, comparing favourably with the year before in which the company lost €117m in sales of €2.74m. “In returning to profitability, we have reached a first important milestone,” says Heidelberg CEO Gerold Linzbach. “We are now starting the next stage of the group’s reorganisation so as to achieve a sustained increase in corporate value. This involves making acquisitions in growth segments, scaling down areas of business with weak margins, and cutting structural costs in order to further improve profitability.”
Dr Gerold Linzbach, CEO of Heidelberg
Since the onset of the GFC Heidelberg has seen sales plummet, particularly in its key US and European markets, leading to the company to be rescued from collapse by various German government agencies. Staff numbers have been reduced from 20,000 to 12,000. However Linzbach says all that is now behind the company and he is looking forward to growth. The company says the next step is to secure the group’s sustained profitability in the years ahead by expanding growth segments, implementing portfolio measures and introducing structural cost projects. Heidelberg will also leave its traditional home in the town that bears its name with the administrative and management headquarters to be relocated 20km south into its Wiesloch/Walldorf factory site. Digital is now a major plank in Heidelberg’s strategy. It has a co-development deal with Fujifilm, a distributor agreement with Ricoh and Heidelberg is further developing its digital portfolio with the planned complete takeover of the Gallus, by increasing its stake from 30 per cent to 100 per cent, in a deal which will see Gallus owner Ferdinand Rüesch become an anchor shareholder in Heidelberg with a nine per cent stake. “Our aim in acquiring Gallus is to achieve fast and profitable growth in the digital label sector. What’s more, a strategic investor with experience in this sector will ensure the stability of both the shareholder and capital structures,” says Linzbach In spring this year Heidelberg and Gallus will be unveiling a new digital printing system for the label market based on Fujifilm technology. Ferdinand Rüesch will also become a new strategic anchor investor of the company by acquiring around nine per cent of Heidelberg shares in return for the Gallus stake. At the same time, Heidelberg is strengthening its capital structure, which will support the company’s strategic reorientation. Heidelberg sees particularly good opportunities for growth in the expansion of its activities involving services and consumables, which benefit from strong margins. Following the successful takeover of a coating manufacturer, discussions on a further acquisition are currently under way. As part of the collaboration with Fujfilm, an OEM agreement to supply platesetters (CtP) has also been concluded. Fujifilm will market Heidelberg platesetters under its own name in future, while Heidelberg has taken over some European sales activities for Fujifilm printing plates.
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