Heidelberg expects sales in the 2020/2021 financial year to be significantly down on the prior year (EUR 2,349 million). The anticipated fall in sales due to the COVID-19 pandemic will also have a marked negative impact on the EBITDA margin due to lower volumes. However, earnings are expected to be improved by savings from the package of measures, accounting measures as well as temporary relief from more flexible working hours and short-time working. The overall target is to deliver an EBITDA margin excluding restructuring result that is at least level with the prior year, despite the lower sales. Based on the sales forecast, Heidelberg is expecting a significantly improved, but once again clearly negative result after taxes for financial year 2020/2021 compared to the previous year. In the medium to long term, Heidelberg believes that the comprehensive package of measures will help to sustainably improve the company's future profitability and its financing power for future growth.
In the current operating environment dominated by the COVID-19 pandemic, it is not yet possible to be more precise as to onward market and industry developments. There are, however, a number of positive signs. The unique digital connectivity of its installed machine base gives Heidelberg excellent visibility with regard to printers' capacity utilization as a reliable indicator of economic activity in each market. As this data clearly shows, business in China - Heidelberg's biggest single market - is picking up again and has already surpassed the prior-year level. Other markets are likewise already showing initial signs of recovery in print volumes, thus giving cause for cautious optimism looking ahead to the second half of the financial year. There nevertheless remains considerable uncertainty with regard to the economic environment.
The virtual Annual General Meeting of Heidelberger Druckmaschinen AG will be held on July 23, 2020.
For image material and additional details about the company, please visit the Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com [http://www.heidelberg.com/].
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Important note:
This press 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 macroeconomic 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 press release.
For additional information: Corporate Communications Thomas Fichtl
Telefon: +49-6222-82-67123
Telefax: +49-6222-82-67129
E-Mail: Thomas.Fichtl@heidelberg.com[mailto:Thomas.Fichtl@heidelberg.com]
Investor Relations Robin Karpp
Tel: +49-(0)6222-82-67120
Fax: +49-(0)6222-82-99-67120
E-Mail: robin.karpp@heidelberg.com[mailto:robin.karpp@heidelberg.com]
