HEIDELBERG expects further profitable growth for financial year 2022/23 despite great uncertainties

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  • Sales are expected to reach around €2.3 billion in fiscal year 2022/23, with a strong backlog of €900 million, mainly due to growth in the company’s core business
  • EBITDA margin of at least 8% and continued improvement in net income after tax
  • Highlights of the 2021/22 financial year: increase in sales of 14% to 2.183 billion euros and in EBITDA margin increases to 7.3%
  • Strengthening balance sheet resilience and reducing net financial debt

HEIDELBERG, Germany , June 9, 2022 /PRNewswire/ — Heidelberger Druckmaschinen AG (HEIDELBERG) is cautiously optimistic heading into the 2022/23 financial year. The Group’s backlog of approximately €900 million as of March 31, 2022 is the highest in ten years. However, like all production companies, HEIDELBERG is faced with sharp increases in material, energy, logistics and personnel costs which are likely to lead to price adjustments. Thanks also to the substantial efficiency improvements resulting from the package of measures in recent years, HEIDELBERG is nevertheless confident of being able to improve sales from 2.18 billion euros to around 2.3 billion euros in the financial year. 2022/23 and also to increase the EBITDA margin to at least 8 percent.

The Group benefits from growth initiatives focused on the key profitable markets of packaging printing, digital business models and the dynamically growing e-mobility sector. For example, sales of charging stations for electric vehicles (wallboxes) increased by more than 120% to around 50 million euros in the previous financial year and HEIDELBERG expects further double-digit growth for the current year.

“During the past financial year, HEIDELBERG further strengthened its resilience by significantly improving its sales and results. Financially, the Group is in a better position than it has been for some time. In the financial year 2022/ 23 also, we look to benefit from this, successful growth initiatives focused on key markets and our digital business models, as well as our success in e-mobility, which makes us optimistic about our ability to counter the very difficult circumstances, including huge price increases. We will be monitoring the markets very closely so that we can take the necessary countermeasures, but as things stand, we expect further revenue growth to approximately 2.3 billion euros and, mainly due to operational improvements, an increase in the EBITDA margin to at least 8%”, states CEO HEIDELBERGDr. Ludwin Monz.

HEIDELBERG’s realignment pays off

In the financial year 2021/22 (April 1, 2021 to March 31, 2022), HEIDELBERG benefited from the successful realignment of the Group over the previous two years. Sales increased by 14% to €2.183 billion, which met the target of at least €2.1 billion. Significant growth was achieved in commercial printing and packaging, with growing demand for virtually every product and in every region. Customer investment in new equipment has been the main driver in this regard. Incoming orders increased by more than €450 million to €2.454 billion, reflecting this improvement in the investment climate. The backlog reached a level of around 900 million euros (previous year: 636 million euros).

HEIDELBERG has seen the successful development of its electromobility business continues. In the Technology Solutions segment, strong demand for private electric vehicle charging stations (wallboxes) led to an increase in sales from €22 million to around €50 million. Despite major growth investments, the operating margin improved considerably, rising from 0 to 7.8%. With approximately 130,000 units sold, HEIDELBERG is one of the market leaders in Germany.

Thanks to the significant growth in Group sales and improved profitability, EBITDA increased to 160 million euros (previous year: 95 million euros). In addition to operational improvements, the non-recurring effects of asset management – in particular the proceeds from the sale of docufy (around 22 million euros) and a building in the UK (about 26 million euros) – also contributed positively to this figure. Impairments related to economic sanctions against Russia in the fourth quarter had the opposite effect. Adjusted for the non-recurring expenses and income of the previous year, the operational improvement which serves as the basis for the EBITDA is more than 100 million euros. The EBITDA margin based on sales reached a level of 7.3% (previous year: 5.0%). Thanks also to the financial result, which improved from 11 million euros to -30 million euros, the net income after tax went from –43 million euros to 33 million euros.

Improved the quality of the balance sheet and free cash flow by more than 100 million euros at the operational level

Mainly due to the significant reduction in net working capital and proceeds from the sale of assets during the reporting period, the free movement of capital rose from 40 million euros the previous year to 88 million euros. Thanks to the successful repayment of loans, borrowings and a convertible bond, the net financial debt fell sharply again, from 67 million euros to –11 million euros. Leverage decreased from 0.7 to -0.1. HEIDELBERG has also made significant progress with its capital ratio. This figure rose to 11.1%, compared to 5.1% for the previous twelve months.

“Our efforts to improve our cash flow and the quality of our balance sheet are also paying off. Going forward, the focus will remain on delivering positive free cash flow and strengthening our financial position. in order to make HEIDELBERG even more resilient”, adds the company director. CFO, Marcus A. Wassenberg.

Confidence for the 2022/23 financial year despite major global uncertainties

Despite the great global uncertainties due to the conflict in Ukraine and pandemic-related lockdowns in China, the outlook for HEIDELBERG to experience profitable growth again in the 2022/23 financial year is good. Assuming no further decline in demand or worsening supply chain situation, sales are expected to increase to around €2.3 billion (fiscal year 2021/22: €2.183 billion). In addition to the planned improvements in volumes and margins, the company is also looking to increase its profitability thanks to the continued reduction in structural costs resulting from the ongoing transformation program. On the other hand, non-recurring income should be significantly lower than the figure of around 48 million euros recorded in the previous financial year. Further significant increases in energy and raw material prices, higher personnel costs and price increases linked to shortages and availability problems of certain products are also expected. Despite these negative factors, the company expects a further improvement in the EBITDA margin to a level of at least 8% in fiscal year 2022/23 (fiscal year 2021/22: 7.3%). The net result after tax should also increase at least slightly compared to the financial year 2021/22 (33 million euros).

The financial statements and the annual report for the financial year 2021/22, images and additional information on the company are available in the Investor Relations and Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.

Heidelberg IR also on Twitter:

Link to Twitter IR channel: https://twitter.com/Heidelberg_IR

On Twitter under the name: @Heidelberg_IR

Further information :

Business communication

Thomas Fichtl
Telephone: +49 6222 82-67123
Fax: +49 6222 82-67129
E-mail: [email protected]

Investor Relations

Maximilian Beyer
Telephone: +49 6222 82-67120
Fax: +49 6222 82-99 67120
E-mail: [email protected]

Important note:

This press release contains forward-looking statements based on assumptions and estimates by the board of directors of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the Management Board is of the opinion that these assumptions and estimates are realistic, the evolution and the actual future results may differ substantially from these forward-looking statements due to various factors, such as the evolution of the macro-economic situation , interest rate exchange rates, interest rates and the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft makes no warranties and assumes no liability for any damages in the event that future development and projected results do not match the forward-looking statements contained in this press release.

SOURCE Heidelberger Druckmaschinen AG

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