Heidelberg's massive change

First analysis of the webcast by the Heidelberg Board of Management March 18, 2020, 10 am CET

I would like to share my short real-time report based on the ad hoc news Heidelberg communicated yesterday evening.

1. By completely reducing net debt (pension fund reserves are added to the majority of the balance sheet), Heidelberger Druckmaschinen AG can make it an attractive takeover candidate.

2. Setting the #Primefire106 as the #inkjet printing flagship eliminates operational losses, but slows down growth through innovation in the prospering #packaging market. — CFO Marcus Antonius Wassenberg's assessment that digital printing is just beginning is sounding worth considering. After all, Heidelberg has developed over many years and invested over € 150m in R&D. And all competitors rely on #Inkjetprinting. Maybe new partnerships can arise. In addition, Heidelberg is holding intensive discussions for new strategic partnerships.

3. It is still unclear how / whether the measures set out by CEO Rainer Hundsdörfer will affect AE in times of the #coronavirus chaos. At the moment you can react (short-time work, reduce costs etc.) and see what happens. Manufacturing in China is picking up speed again.

4. The failure of the # drupa2020 has good and bad effects. It saves effort and costs, but brings communication with customers to a standstill.

5. #subscription and connected #digitalservices are becoming increasingly important.

Mar 18, 2020

Author: Andreas Weber