Transcript Intergraf GA / Helsinki 2007

Intergraf GA / Helsinki
Intergraf GA / Helsinki
2007
2007
Heidelberg Nordic - Baltics
Esa Saarinen
HNB Commercial Director
Intergraf GA helsinki
2007
Heidelberger Druckmaschinen AG
Company Profile Heidelberg
Intergraf GA / Helsinki
2007
Heidelberg is market and technology leader in
sheetfed offset
• World-wide technologically leading
supplier of sheetfed offset solutions
• Sole supplier of seamlessly networked
solutions from prepress to postpress
• Customer and market closeness as well
as a strong service orientation result in
clear differentiation from competition
• More than 200,000 customers in
170 countries
Intergraf GA / Helsinki
2007
The Heidelberg portfolio: Hardware, Software and
Brainware around sheetfed offset printing process
Internet
Customers/
suppliers
Delivery
Prepress
Postpress/
Finishing
Soft- and
Hardcopy
Proofs
Offset
Printing
Systems and Services
CtP
Consulting and Training
Intergraf GA / Helsinki
2007
14 Production and Development Sites
Amstetten (D)
Bad Homburg (D)
Brandenburg (D)
Heidelberg (D)
Kiel (D)
Langgöns (D, Gallus)
Leipzig (D)
Ludwigsburg (D)
Mönchengladbach (D)
Wiesloch (D)
Nove Mesto (CZ)
St.Gallen (CH, Gallus)
Eksjö (S)
Sidney (USA)
(in construction)
Intergraf GA / Helsinki
2007
The Heidelberg Team
• Approx. 19,000 employees worldwide
• Thereof in Germany: 11,700
• At Heidelberg and Wiesloch: 8,000
As at March 31, 2005
• Over 1,500 employees in R&D
Intergraf GA / Helsinki
2007
Research and Development
Yearly investments in R&D of approx. 200 Mio. Euro (6 % of sales)
– Around 1,500 employees in R&D world-wide, thereof 350 software
developers
– 5,500 patents in Germany and abroad
– Intensive involvement of customers in R&D projects
– International networking with universities, research establishments and
suppliers
Intergraf GA / Helsinki
2007
Research & Development
Intergraf GA / Helsinki
2007
Service
• More than 250 agencies in over 170 countries
stand for customer-tailored on-site service.
• Around 3700 service experts work around the
clock serving customers.
• The World Logistics Center ensures fast and
high availability of service parts.
• Web-based Remote Service enables
press inspections and maintenance without
the need of an service technician on-site.
• The world-wide branches of the Print Media
Academy provide training for our customers
and employees
Intergraf GA / Helsinki
2007
Key Figures FY 2006/ 2007
Incoming Orders
3,853 Mio. Euro
Sales
3,806 Mio. Euro
Sales abroad
more than 85 %
Operating result
362 Mio. Euro
Year‘s net earnings after taxes
263 Mio. Euro
Employees world-wide
• Name des Autors • Datum •
Dateiname • Seite:
19,171
Intergraf GA / Helsinki
2007
Heidelberg Nordic&Baltics
• Employees
211 employees, of which 45 in the Baltics and 166 in the Nordics
Number of employees
Denmark
Sweden
Finland
Lithuania
Latvia
Estonia
66
56
44
13
18
14
• Sales performance
FY
2006
2007
Sales
129,7 mill. EUR
126,5 mill. EUR
The sky is falling
Global Indicators
Intergraf GA / Helsinki
2007
Print production volume decoupling from gross
domestic product (GDP)
GDP & Print Production Volume (PPV) (value-based)
Global
Actual 1998-2004; Forecast 2005-2010
Index (1998 = 100)
160
150
Forecast
GDP
CAGR: 3,4%
140
130
Real PPV
CAGR: 2,5%
120
110
Nominal PPV
CAGR: 4,7%
100
90
80
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
GDP Index (1998=100)
Index Prod.Volume, real (1998=100)
Index
Prod.
nominal
Source: Industry statistics, PIRA, FAO, Jaakkoo Pöyry,
Global
Insight,Volume
UBS, CD-SD
estimate
Print Production Volume w/o print for manufacturing, corrugated packaging, metall packaging, glass packaging
Years
The sky is falling
Global Indicators
Intergraf GA / Helsinki
2007
Online advertising and promotion growing at the
expense of print
Media Budget Allocation
2006-2007
Allocate new spending for
offline
5%
Reallocate from online to
offline
2%
Online spending to grow
or shrink with overall
marketing budget
23%
Reallocate from offline to
online
29%
Total: 227 Respondents
Source: Economist Intelligence Unit Survey of 300+ Senior Executives, Worldwide,
February 2006
Allocate new spending for
online Promotion
41%
The sky is falling
Intergraf GA / Helsinki
Global Indicators
2007
Progress in display technologies substituting print
The sky is falling
Intergraf GA / Helsinki
Global Indicators
2007
Traditional printing not a sexy business to be in
Print is alive and well
Market Trends
Intergraf GA / Helsinki
2007
On a global basis, the printing business is recovering, after a
tough start in 2000
Development of Global Printing Industry, Indexed
(2000 – 2006)
110
Value of Exported
Sheetfed Offset
Êquipment
Value of Print
90
80
Source: Import / Export VDMA, Global Insight
20
06
20
05
20
04
20
03
20
02
20
01
70
20
00
Index (2000 = 100)
100
Printers have to adapt
Adapt Business Model
Digital Print
Intergraf GA / Helsinki
2007
Digital printing continues to increase in importance,
but it‘s a long process!
CAGR‘
Print Production Volume (Mio Euro)
(2000 – 2020)
Development of Printing Process Shares
by Print Production Volume (Mio €)
(Actual 2000-2005; Outlook: 2006-2020)
600.000
Total 1,4 %
500.000
Other
0,7 %
400.000
Digital
10,3 %
300.000
Sheetfed
offset
0,9 %
200.000
100.000
Web offset
0,4 %
0
2000
2004
Actual
2006
2008
2012
Forecast
SOURCE: M-IM Estimates, PIRA 2002, GAMIS 2002, Industry Statistics, Jaakko Pöyry 2002
‚CAGR is Compound Annual Growth Rate
2016
Projection
2020
Intergraf GA / Helsinki
2007
Paper consumption recent years
Graphic Paper Consumption
'000 Metric tons
2.500
Denm ark
2.000
Sw eden
1.500
Finland
1.000
Lithuania
Estonia
500
Latvia
0
2002
2003
2004
2005
2006
Intergraf GA helsinki
2007
GDP growth recent years
GDP Growth
%
14,0
12,0
Denmark
10,0
Sw eden
8,0
Finland
6,0
Lithuania
4,0
Estonia
2,0
Latvia
0,0
2004
2005
2006
2007E
Intergraf GA / Helsinki
2007
Inflation recent years
Inflation
8,0
7,0
Denm ark
6,0
Sw eden
%
5,0
Finland
4,0
Lithuania
3,0
2,0
Estonia
1,0
Latvia
0,0
2004
2005
2006
2007E
The sky is falling
Local Indicators
Intergraf GA / Helsinki
2007
In addition, profitability has been a real challenge
Printing Industry in Finland
Leading 100 Printers by Profit/Loss
2006
25
Profitable
Number of Companies
20
15
10
5
0
-20% -16%
-15% -11%
-10% -6%
-5% 0%
1% 5%
Profit Range (Percent)
Source: Balance Consulting Oy, Ranking Report
Printing Houses, January 2007
6% 10%
11% 15%
> 15%
Print is alive and well
Market Trends
Intergraf GA / Helsinki
2007
Finland is expected to enjoy its share of growth in print production volume through
2010, coming from a low base…
Development of Print Production Volume (billion €)
(Actual 2005; Forecast 2010)
+11%
440
(CAGR: 2,2%)
400
Real Print Volume in bn. €*
360
320
280
2005
240
2010
+12%
200
(CAGR: 2,3%)
160
120
80
40
+13%
+8%
(CAGR:2,5%)
(CAGR:1,5%)
(2.3 bn €)
(2.5 bn €)
0
Print Per
Capita (€)
2005
World
58 €
Central Europe
335 €
Finland
446 €
Source: Heidelberg Estimate – March 2006, Industry statistics, PIRA, Jakkoo Pöyry, GAMIS
*Base Year: 2004
Denmark
472 €
Print is alive and well
Market Trends
Intergraf GA / Helsinki
2007
…and growth in individual print products is strong
Forecast Annual Growth Rate 2005-2010 by Print Product
Finland
Denmark
Nordic
Germany
USA
World
Magazines
2,4%
1,7%
1,6%
1,9%
1,5%
2,8%
Advertising
2,3%
1,5%
1,4%
1,7%
-0,8%
2,0%
Catalogs
2,3%
1,7%
1,8%
1,6%
-1,6%
2,2%
Book Printing
2,3%
1,6%
1,6%
1,5%
-2,5%
2,2%
General Commercial
2,4%
1,6%
1,5%
1,7%
0,4%
2,0%
Speciality
2,2%
1,5%
1,7%
1,2%
0,4%
1,7%
Labels & Tags
3,6%
2,5%
2,8%
3,2%
2,2%
4,0%
Folding Boxes
3,0%
1,9%
1,9%
2,2%
0,7%
3,1%
Source: Heidelberg Estimate – March 2006, Industry statistics, PIRA, Jakkoo Pöyry, GAMIS
*Base Year: 2004
Printers have to adapt
Intergraf GA / Helsinki
2007
What to do ?
Increase Productivity
Differentiate Offerings
Adapt Business Model
Printers have to adapt
Increase Productivity
Intergraf GA / Helsinki
2007
From islands of automation…
Administration
Prepress
Press
Postpress
Workflow
Integration
Printers have to adapt
Increase Productivity
Intergraf GA / Helsinki
2007
Workflow
Integration
… to workflow integration
Print Buyer
Integration
Administration
Job
ticket
Job
Data
Central JDF und core data for each machine
and every work position
Prepress
Print Buyer
Integration
Prepress
Integration
Press
Postpress
Press
Integration
Postpress
Integration
Color
Solutions
Delivery/
Fulfillment
Printers have to adapt
Increase Productivity
Intergraf GA / Helsinki
Workflow
Integration
2007
Case Study 1: Direct savings of roughly 30%
3,5 m€
35 employees
12,000 plates/year
Efficient Order Preparation
Reduced Cash-Out
or additional CashIn
Indirect Savings
(additional capacity)
0€
0%
71.000 €
2%
0€
0%
61.000 €
1.7 %
636.000 € 18.1 %
0€
0%
285.000 €
8.1 %
0€
0%
175.000 €
5.0 %
7.000 €
0,2 %
1.096.000 € 31.2 %
139.000 €
3.9 %
consistent data entered and reused in
production systems (i.e. job ticket)
Efficient Order Management
less internal resources required per job
Prepress
reduction of staff due to level of automation
Press
reduction of 3rd shift and material savings
Job Costing
less effort to gather data and charge
services not charged in past
Total
Printers have to adapt
Differentiate Offerings
Intergraf GA / Helsinki
2007
Print buyers are hungry for new effects
Print Buyer Level of Interest in Embellishment Options
„Everybody can
print 4c – but
how can I
differentiate
myself from
competitors?“
Coating
Die-cutting/Window cutting
Perforating
Laser micro cutting
Iriodin
Laminating
Embossing
Higher grammages *
Hexachrome
Printing on plastic
Fluorescent inks
Scented inks
Hot-foil stamping
1
Source: HDM Print Buyer Study, 2005
* > 300g/m²
uninteresting
2
3
4
5
very interesting
The sky is falling
Local Indicators
Intergraf GA / Helsinki
2007
As in most countries, the printing industry in Finland is composed of numerous
small companies– typical next phase is consolidation!
Printing Industry in Finland
Leading 100 Printers by Revenue
(2006)
70
Number of Companies
60
50
40
30
20
10
0
1-5
6-10
11-20
21-30
Revenue Range 2006
in Mio €
Source: Balance Consulting Oy, Ranking Report
Printing Houses, January 2007
31-40
41-50
>50
Printers have to adapt
Intergraf GA / Helsinki
Adapt Business Model
2007
Case Example „Tomorrow?“
Paper-based interfaces to the electronic world
Beyond Ink
on Paper