heidelberg goes digital! · the global print production volume. ... the folding carton market –...

Capital Markets Day

April 10, 2018 | Frankfurt

Heidelberg goes digital!

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Digital

Packaging

Smart

Print Shop

© Heidelberger Druckmaschinen AG

Agenda

9:00 Welcome

9:30 Strategy | Rainer Hundsdörfer, CEO

9:45 Smart Print Shop | Stephan Plenz, CTO

10:05 Digital Packaging | Montserrat Peidro-Insa, Head of Digital Print

10:25 Q&A

10:45 Break

11:05 Digital Business Models | Ulrich Hermann, CDO

11:25 Customer perspective | Moritz Weig, Managing Proprietor of WEIG Packaging

11:45 Q&A

12:05 Growth Financing | Dirk Kaliebe, CFO

12:25 Wrap up + Q&A

Strategy

Rainer Hundsdörfer, CEO

Subscription

Digital

Packaging

Smart

Print Shop

© Heidelberger Druckmaschinen AG 4

Our roadmap is clear. Important milestones achieved.


2016 2019

The global print production volume. Is growing.

Source: Heidelberg estimate – August 2017, industry statistics, PIRA, Jakkoo Pöyry, Primir (GAMIS), Global Insight Digital: Only Digital Production Devices are taken into consideration ----- *Base Year 2009

409 417 427

€bn

2022

Sheetfed

Flexo

Digital

Others

5


Our potentials. Growth through digital transformation and

technology leadership.

* Accessible market for Heidelberger Druckmaschinen, excluding postpress

Consumables

€8 bn*

6

Digital

Packaging

Digital

€2.5 bn**

Sheetfed offset

€2.4 bn*

Smart

Printshop

Addressable market

Heidelberg

solution

Sub-

scription

Growth

potentials


Our medium term targets. Sustainable & profitable growth

• Digital print portfolio (€ +200 million) • Digital business model (equipment– consumables – service:

€ +250 million) • Digital platforms (€ +50 million)

• Digital business model / Volume growth (€ +50 million)

• Cost efficiency (operational excellence: € +50 million)

7

Group targets by 2022:

• Sales volume of up to € 3 billion

• EBITDA between € 250 and 300 million

• Net profit > € 100 million

Smart Print Shop

Stephan Plenz, CTO

© Heidelberger Druckmaschinen AG 9

Growth opportunities: approx.

€ 200 million sales potential in 5 years


Print Production Volume. Stable in Commercial – growth in Packaging & Label.

Heid

elb

erg

s

Ta

rge

t s

ec

tio

n

166 165 164

108 117 126

111 108 107

30

+0,8% +0,6%

2022

427

2019

417

27

2016

409

24

-0,8% p.a. -0,4% p.a.

-0,2% p.a. -0,1% p.a.

Commercial Packaging Label Others

Development of the global Print Production Volume by

segments (PPV in €bn)


Packaging Folding Carton

Flexibles

Commercial Catalogs

Advertising

Financial / Legal

Directories

Label Labels

+2,7% p.a. +2,6% p.a.

+3,4% p.a. +3,3% p.a.

10


Heidelberg goes digital. Simply Smart.

Increased availability

and productivity

Navigated and

autonomous Printing

Innovative ways of

cooperation

Process Optimization

Push to Stop

eCommerce

Heidelberg Assistant

Subscription

Performance Plus

Predictive Monitoring

11


Automation and integration on a new level. Prinect. Driving the Smart Print Shop.

Equipment Consumables

Service Customer

12


Today

15 touchpoints

1. Estimating

2. Job creation in MIS including job ticket

3. Prepress PDF processing or native artwork

4. Imposition

5. Proofing and customer approval

6. Plate imaging

7. Production planning

8. Plate sorting and delivery to the pressroom

9. Assignment of ink and paper

10. Press including production data acquisition

11. Postpress including production data acquisition

12. OK sheet approval

13. Quality control

14. Packaging and shipping

15. Billing

Reducing touchpoints. Prinect. Driving the Smart Print Shop.

With Prinect

4 touchpoints

1. Estimating (end-to-end) 2. Planning 3. Press and postpress 4. Shipping and billing

13


Big Data & real-time transactions. The Heidelberg Cloud: the largest PMI database.

More than 10.000 Heidelberg

machines and 15.000 Prinect

modules connected

Big Data combined with central

analytical and predictive logic to

provide the base for Heidelberg’s

Predictive Monitoring

Performance Plus

Heidelberg Assistant: Expert know-how at your

fingertips

Transparency about availability

and performance of

your print shop

14


Benchmark analyze – for more performance. The Heidelberg Cloud: the largest PMI database.

Global benchmark1 – OEE 10.000 over average net impressions

1) Results based on avg. values from Oct17-Dec17 15


Administration

Individual configuration

Smart Print Shop – full transparency. Heidelberg Assistant.

Print Shop

Availability and productivity of

equipment

Shopping

Matching consumables and service

parts

Support

Access to service contracts

16


Print Production Volume – Sheetfed. Growth markets Packaging & Label.

Heid

elb

erg

s

Ta

rge

t s

ec

tio

n

150 150 152

52 57 63

65 77 88

142132

124

2019

417

2016

409

+0,8% +0,6%

2022

427

-2,3%

p.a.

-2,0%

p.a.

+3,0%

p.a.

+3,0%

p.a.

+0,1%

p.a. +0,4%

p.a.

Sheetfed Flexo Digital Others

+6,0%

p.a.

+4,4%

p.a.


technology (PPV in €bn)


17


Technology leadership – for packaging & label printing. The new Speedmaster generation.

XL 145 and XL 162

CX 75 and XL 75

CX 102 and XL 106

XL 75 Anicolor

18


Technology leadership. We have to completely change our mindset.

Today we initiate processes and

start them actively.

“Push to Start”

19


Technology leadership. We have to completely change our mindset.

Tomorrow processes run autonomous.

We only interrupt if necessary.

“Push to Stop”

20


Push to Stop is part of the new Speedmaster generation. The patented Intellistart 2 makes the difference.

New Intellistart 2 with Intelliguide

Calculates the fastest make-ready strategy

Guides the operator through the individual steps on

the press

21


More than 400 installed machines using Push to Stop. Acket increased productivity by 20%*.

* Compared to a competitive machine

Tom Acket: “I’m a big fan of numbers: measuring means knowledge. We document the performance of our presses using scoreboards, and we’re always right up there in any benchmark studies. Our long-standing experience with Heidelberg products has been only positive, and we don’t expect that to change with our three Speedmaster XL 106 machines. Our latest flagship is a Speedmaster XL 106-6 with double coating. It is equipped with the latest Push to Stop technology and in this way shows the operator the quickest means to the end. Together with the ability to perform the makeready processes in parallel thanks to Hycolor Multidrive, it has enabled us to improve our productivity by 20% in comparison with an older machine from the another supplier. So we are optimally prepared for the future.“

22


More than 400 installed machines using Push to Stop. Czech printer Triangl significantly increases OEE.

Speedmaster XL 106-8-P Installed: Feb 2015

Average run length: 10,000 sheets

after 24 months 172 million/ OEE 54%

March 2017 7,6 million/ OEE 58%

Speedmaster CX 102-5+L Installed: Feb 2017

Average run length: 4,400 sheets

March 2017 5,9 million/ OEE 50%

90 mil p.a.

70 mil p.a.

Overall Equipment Effectiveness (OEE) 23

Digital Packaging

Montserrat Peidro-Insa, Head of Digital Print


Print Production Volume – Digital. Strong growth in Packaging & Label.

Heid

elb

erg

s

Ta

rge

t s

ec

tio

n

150 150 152

52 57 63

65 77 88

142132

124

+0,8% +0,6%

2022

427

2019

417

2016

409

-2,3%

p.a.

-2,0%

p.a.

+3,0%

p.a.

+3,0%

p.a.

+0,1%

p.a. +0,4%

p.a.

Sheetfed Flexo Digital Others

+6,0%

p.a.

+4,4%

p.a.


technology (PPV in €bn)


25


Leading digital technology. The Fire-line portfolio.

Versafire

Primefire

Labelfire

Omnifire

26


A brief story about digital adoption. Now it is the turn for packaging.

27


Add traceability elements to each product

Add security features to each box against black market

Compliance with special regulations (ie. Pharma 2019)

Produce on demand – minimize inventories

Fast reaction to last minute changes

Quick prototyping and agile product development

Segmented product offering and message for maximum sales impact

Differentiation and best shelf appeal

Quick time to market to adapt to consumer demand

Personalized experiences to gain customer engagement

Brands generate demand for digitally printed jobs. Now it is the turn for packaging.

Sales

effectiveness

Supply chain

efficiencies

Additional

security

28


Heidelberg industrial digital print production. Primefire 106.

Accelerating business growth

through

dependable high quality performance

29


Dependable high quality performance. Primefire 106.

Control of

>12 billion drops per sheet.

Industrial inkjet printing up to 75

x 106 cm format

size with full flexibility.

Water based inkjet system

with Swiss

Ordinance conformity. Best conditions

for low migration products.

Top quality at

run length 1

Pantone color gamut coverage of

~95% due to Heidelberg

Multicolor Technology

7 process colors. Cyan, magenta, yellow, black, orange,

green, violet.

30


Publishing

houses

Field of application. Primefire 106.

Folding carton

converters

Pharma

converters

Calendar,

Poster and

Cards producers

31


The folding carton market. Primefire 106.

Applications

with high

finishing

Applications

with low

finishing

small

medium

volume

large

Pharma

OTC

Wine &

Spirits

Cosmetics

and Body

care Specialties

Pharma

Technically Home Care

Food & Dairy products Drinks

32


The folding carton market – potential. Primefire 106.

Applications

with high

finishing

small

medium

volume

large

Pharma

OTC

Wine &

Spirits

Cosmetics

and Body

Care Specialties

Pharma

Technically Home Care

Food & Dairy products Drinks

Total folding carton market expected to be 1,200 to 1,400 companies by 2022

Final Primefire fits 35% of companies.

Addressable market of ~550 machines

(penetration rate = 1.3 machines/company

Primefire MVP* fits about

15% companies.

Addressable market of

~180 machines

*Minimum viable product

Applications

with low

finishing

33


Industrial digital printing on track. Primefire 106.

December 2015 – First 1c print

June 2017 – 1. beta unit installation finished

Folding carton converters

May 2016 – Drupa launch

Jan 2018 – 2. beta unit installation finished

Pharma converters

34


Booked out for the next two years – global presence. Primefire 106.

#1 #1 #5 #1 #2 #5 #6 #1 #1

35


Label printing. Digital label business is growing.

Market is changing

2/3 of all label presses sold in Europe are digital

presses

Digital printing already holds about 10% share

(value) of label business

Inkjet printing is expected to grow faster than the

electrophotography because of its greater potential

for development

Almost half (46%) of respondents to the FINAT

Digital Survey 2017 confirm that 100% of digitally

produced jobs require further processing

Source: FINAT Digital Label Study 2017 and Smithers Pira 2017

36


From the file to the finished label in only one pass. Gallus Labelfire 340.

First industrial digital inline converting system

Jointly developed by Gallus and Heidelberg

Innovative UV drop-on-demand inkjet technology

Leading-edge performance with 50m/min at 1,200 dpi

More than 18 machines already sold to customers worldwide

37


New standard for cost efficiencies. Gallus Labelfire 340.

Lowest total cost for high quality labels

Assumptions:

€ 0.01 click, per color, 2 clicks per print frame

Run-length: 20’000 labels

Competitor (press and finishing equipment): labor, setup time & waste

4c+1x white, Low Coverage 94 x 72mm

EPM Mode 142 x 45mm

4c, Avg. Coverage

144 x 84mm

4c, High Coverage 94 x 72mm

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

HP 6800 +ABG Digicon

GallusLabelfire 340

Total Cost per 1000 Labels [EUR]

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00


GallusLabelfire 340


0,00

2,00

4,00

6,00

8,00

10,00

12,00


GallusLabelfire 340


0,00

5,00

10,00

15,00

20,00


GallusLabelfire 340


Competitor Competitor Competitor Competitor

38


Series production in Wiesloch-Walldorf. Gallus Labelfire 340.

39

heidelberg goes digital! · the global print production volume. ... the folding carton market –...

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