Heidelberg Initiates Further Reorganization; Announces Financial Targets, Site Consolidation
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. As regards services, the marketing of new service products has gotten off to a successful start. The portfolio now also includes consulting, which extends beyond simply providing technical services and is intended to achieve a concrete, measurable improvement in customer results.
New business models for product segments with weak margins
The portfolio analysis conducted last year showed that the only way to achieve economic success in some product areas is to switch to new business models. Over the next six months, the company is therefore planning to take decisions on discontinuing some operations or radically altering the vertical range of manufacture, in some cases with the involvement of partners.
Further consolidation of site structure
Ongoing projects to boost efficiency have already led to a streamlining of structures at the Group's key sites in Heidelberg and Wiesloch/Walldorf. By the end of financial year 2014/2015, there are plans to integrate the administrative headquarters into the Wiesloch/Walldorf production site. This will involve the relocation of the Management Board and some 500 employees. This step will further improve the harnessing of synergies between the two sites and lead to annual savings in operating costs in the low single-digit million euro range. It will also create the world's largest demonstration print shop for both packaging and commercial printing, where customers will get a live insight into the interplay of printing technology, future-focused service concepts and consumables.
"The Heidelberg corporate culture is entering a new era," concluded Linzbach. "The key focus when taking decisions will be on both our customers' results and our own. We are bringing key functions and operational areas into closer proximity and are gearing our activities more toward the market and our customers. This will make Heidelberg leaner and more profitable. The measures we are planning in the current financial year will lay the foundation for achieving an EBITDA margin of no less than 8 percent by financial year 2015/2016."