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Heidelberger Druckmaschinen AG - Half year results FY 2023/24

Dr. Ludwin Monz, CEO | Tania von der Goltz, CFO | November 08, 2023.

Disclaimer

This release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this presentation.

© Heidelberger Druckmaschinen AG

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6m FY 2023/24 at a glance

Business and financial review

Sustainability

Outlook

3

© Heidelberger Druckmaschinen AG

Orders received stable, growth in adjusted EBITDA-margin.

HEIDELBERG well on track at half year mark FY 2023/24.

Orders receivedNet salesAdj. EBITDA in % Net sales1

€ 1,184m

€ 1,092m

9.2 %

Fx adj. € 1,221m

Fx adj. € 1,124m

(PY 6m: € 1,229m)

(PY 6m: € 1,120m)

(PY 6m: 8.2%)

// Key developments half year FY 2023/24:

Stable order development: HEIDELBERG is weathering a tense overall economic situation and a weak performance in the engineering sector.

Solid y/y growth in the strategically important segment Packaging Solutions - Print Solutions muter given the current economic environment.

Confidence for full year targets, guidance reiterated: Solid half-yearresults pave the way for the full year.

© Heidelberger Druckmaschinen AG

1No adjustments included in 6m FY2023/24. Adjustments would be made for material non-operating transactions, such as the sale of non-operating assets, write-downs, restructuring expenses,

income and expenses from acquisitions and disposals, and exceptional events with a significant impact on the Company. For further details, s. appendix.

4

HEIDELBERG's packaging footprint.

Share of packaging sales growing, progress on strategy implementation.

  • Last twelve months Packaging Solutions' share of sales per quarter

In % of total sales

+5,8ppt

// Update on strategy

Boardmaster & Gallus One off to a

43,1%

30,0%1

45,2% 45,9%

47,5% 48,1% 48,9%

successful start.

First installations finished, solid project pipeline.

Overall resilient customer demand so far, despite a rather sluggish economy.

Asia/Pacific with growing mid-term importance.

FY14

FY23

FY23

FY23

FY23

FY24

FY24

Q1

Q2

Q3

Q4

Q1

Q2

© Heidelberger Druckmaschinen AG

1HEIDELBERG management estimate.

5

6m FY 2023/24 at a glance

Business and financial review

Sustainability

Outlook

6

© Heidelberger Druckmaschinen AG

Q2 FY 2023/24 key performance indicators.

Topline also affected by negative fx-effects, Free Cashflow improved.

in million €

Q2 FY 2022/23

Q2 FY 2023/24

change y/y

// Key takeaways:

// Orders received

// Net sales

622

594

590

548

-4.5%

fx-adj.-1.5%

-7.1%

fx-adj.-3.7%

11,6%

Adjusted for fx-effects at € 613m. Stable trend in second quarter, also for new equipment orders. Book-to-bill at 1.08 (PY 1.05).

Adjusted for fx-effects at € 569m. Comparable quarter last year benefitted from post-pandemic recovery in China. Volume y/y lower, price adjustments with positive impact.

Price adjustments continued to support margins; negative

// Adj. EBITDA Margin

in % of Net sales

10,7%

-90bps

product/country mix effects compared to last year's second quarter. No non-recurring items recorded.

-12

// Free Cashflow

-1

+11m€

Free Cashflow balanced. More efficient NWC management

  • Operating Cashflow positive in second quarter.

© Heidelberger Druckmaschinen AG

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Segment split (6m).

Packaging Solutions continued growth in Orders received and Net sales.

in million €

6m FY 2022/23

6m FY 2023/24

// Orders received

Packaging

615

531

+16%

Solutions

// Net sales

10.2%

9.1%

Adj. EBITDA in %

538

553

+3%

9.2%

11.3%

  • Key takeaways:
    • Strong y/y growth in Orders received, driven by Asia/Pacific, Eastern Europe and EMEA.
    • Adj. EBITDA margin affected by higher resource allocation (e.g., R&D).

Print

682

563

-17%

Solutions

Technology

16

Solutions

6

-63%

FY 2022/23

FY 2023/24

6m

6m

Adj. EBITDA in %

566

533

-6%

n/an/a

Adj. EBITDA in %

16

6 -63%

FY 2022/23 FY 2023/24

6m 6m

  • Weaker investment sentiment due to macro topics.
  • Printing volume stable: aftersales business continues to be strong.
  • Market development still restrained, first signs of slight improvement.
  • Focus on new products and market expansion weighs on EBITDA.

© Heidelberger Druckmaschinen AG

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Regions (6m).

Asia-Pacific with year-over-year growth.

in €millions

6m FY 2022/23

6m FY 2023/24

change y/y

// Key takeaways:

Orders received

EMEA + Eastern Europe

Net sales

Orders

Asia-Pacificreceived

Net sales

North America

Orders

+

received

South America

Net sales

613

601

588

567

300

315

273

271

316

268

259

254

-2%

fx-adj.-2%

-4%

fx-adj.-4%

+5%

fx-adj. +14.3%

-1%

fx-adj. +8.3%

-15%

fx-adj.-12,3%

-2%

fx-adj. +1%

Orders received slightly down as expected after a strong prior year, strong momentum in packaging in EMEA and EE.

Net sales slightly below previous year due to weakness in Technology Solutions segment.

Orders received with y/y growth, due to favorable trade fair in China. AP ex China with better momentum in second quarter.

Net sales impacted by a strong negative currency effects; solid order book offers upside in subsequent quarters.

Orders received weaker after strong previous year, fx- advantage for Japanese manufacturers.

Net sales supported by solid service business. Packaging Solutions with y/y gains.

© Heidelberger Druckmaschinen AG

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EBITDA-bridge (6m).

Positive product and country mix effects and successful price adjustments.

in million €

6m FY 2022/23 reported EBITDA

Non-recurring items

6m FY 2022/23 adjusted EBITDA

    • Sales volume related y/y
  • Gross margin improvement y/y
    • S&GA ,R&D, Others y/y

adjusted EBITDA 6m 23/24 =

reported EBITDA

104

12

92

9

31

13

101

101

// Key takeaways:

-

Adjusted for non-recurring item in Q1 FY 2022/23 (Disposal of

property in St. Gallen of € 11.8m).

-

Slight decrease in sales volume after six months.

  • Positive product & country mix effects, improved capacity utilization at the Chinese plant; increased COGS countered by price adjustments.
  • General inflation and tariff increase, trade fair costs and increase in provisions had a negative impact.
    No non-recurring items recorded in FY 2023/24.

© Heidelberger Druckmaschinen AG

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Heidelberger Druckmaschinen AG published this content on 08 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2023 06:56:53 UTC.