Jürgen Rautert — The View from ‘Hei’ Above
Let me be very clear: We have not received a gift of any kind; rather, we have received a loan that has to be repaid. The government did not provide any grant, subsidy or injection of capital.
PI: How do you assess Heidelberg’s vulnerability as a takeover target, based on asset value vs. market capitalization?
Rautert: Our assets are obviously a multiple of our market capitalization right now. I think this is easy to understand when you just take a look to the value of our assets—like the production sites. We talk to all kinds of investors, including institutional shareholders, private equity firms, sometimes even hedge funds. As our business model is long-term oriented, our preferred structure in the shareholder base is to get those on board who also have a long-term investment horizon. Specific shareholder details are not published beyond the main shareholders of Allianz (12 percent) and RWE (8 percent). Whenever we have new shareholders above 3 percent, we will inform the (capital) market accordingly.
PI: Speaking of Financial Services, how is Heidelberg addressing the inability of its customers to obtain financing, due to the tight credit market?
Rautert: Heidelberg Financial Services has established a network of worldwide financing partners for its customers. These financing sources have been extensively involved in financing services for the print media industry and appreciate the special value of an investment in Heidelberg machines. Our highly qualified Financial Services team connects the customer with the appropriate financing partner and offers personal onsite consultancy for all financing questions. Especially in difficult times, the close cooperation with financial institutions has proven to be of great value for our customers.
PI: How does Heidelberg expect to improve its market share for service contracts on older equipment, and what is the profit potential of this additional business?
Rautert: We target to expand our offerings in the areas of Service, Parts and Consumables. In different countries we already achieve a market share of up to 75 percent in Service—measured on the base of our installed machines—and in other markets there is obviously growth potential. Due to the fact that the majority of new machines are already equipped with our industry-leading Systemservice 36 plus contract, we focus on equipment that is six years and older.