Heidelberg Initiates Further Reorganization; Announces Financial Targets, Site Consolidation

Dr. Gerold Linzbach is the CEO of Heidelberg.

Dirk Kaliebe is the CFO of Heidelberg.

HEIDELBERG, GERMANY—June 11, 2014—Following five years of losses, Heidelberger Druckmaschinen AG (Heidelberg) has achieved its key goal of making an annual profit. The net profit for financial year 2013/2014 (April 1, 2013 to March 31, 2014) was € 4 million (previous year: € -117 million). 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. The aim is to achieve an EBITDA margin of no less than 8 percent by financial year 2015/2016.

“In returning to profitability, we have reached a first important milestone,” said Heidelberg CEO Gerold Linzbach. “We are now starting the next stage of the Group’s reorganization 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,” he added.

Strategic reorientation supported by new anchor investor
Heidelberg is further developing its digital portfolio with the planned complete takeover of the Gallus Holding AG. In fall 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 9 percent 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.

“Our aim in acquiring Gallus is to achieve fast and profitable growth in the digital label sector,” noted Linzbach. “What’s more, a strategic investor with experience in this sector will ensure the stability of both the shareholder and capital structures.”

Acquisitions in growth areas—digital, services and consumables
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.

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