Heidelberg Initiates Further Reorganization; Announces Financial Targets, Site Consolidation
During the reporting year, the company's financing structure was further optimized and appropriately diversified - with regard to both financing sources and maturity profile. Heidelberg currently has total credit facilities of about € 790 million at its disposal until financial year 2017/2018.
"Our stable financing framework and the stronger capital structure due to the new anchor investor give us the freedom to carry out our planned strategic measures promptly," stressed Kaliebe.
Outlook: Plans to improve result in financial year 2014/2015—target EBITDA margin of no less than 8 percent in financial year 2015/2016
Heidelberg is expecting to match the sales achieved in the reporting year in the current financial year 2014/2015. As in the previous year, sales are once again expected to be higher in the second half of the financial year than in the first.
Having succeeded, as forecast, in achieving a positive annual result in reporting year 2013/2014, the declared goal for financial year 2014/2015 is to further improve the company's profitability in order to get closer to the medium-term objective of an operating margin of no less than 8 percent in terms of EBITDA and improve the result after taxes in spite of the higher level of interest expense for financial liabilities. The extent of the improvement in the current financial year 2014/2015 will essentially depend on the realizability and timing of the portfolio optimization measures that represent the strategic focus from this year onward. Provided the initiatives to improve the margin and optimize the portfolio are successfully implemented in the current financial year, the company expects to be able to achieve a margin of no less than 8 percent EBITDA on sales by financial year 2015/2016. The planned earnings improvements, combined with the measures to reduce or efficiently use the tied-up capital, should strengthen the capital structure and keep the net financial debt at a low level. This will create the conditions required to optimize the financial result as targeted.