Heidelberger Druckmaschinen (HDD) CMD 2025 summary

Strategic direction and transformation

• Shifted focus from traditional print to global packaging system integration, with packaging now the main strategic pillar and commercial print evolving toward hybrid digital/offset workflows.

• Emphasizes sustainable packaging, targeting 3–5% annual growth, with 85% of FMCG brands setting sustainability goals and consumers willing to pay more for eco-friendly solutions.

• Strong market position in China (over 60% share in sheetfed offset), with expansion opportunities in India and other high-growth regions.

• Lifecycle business (consumables, service, software) generates €900 million in stable, recurring revenue, with a focus on increasing service contract coverage and recurring models.

• Digital solutions and lifecycle segment targets 8.5% annual growth in digital printing, leveraging partnerships (e.g., Canon) and recurring revenue streams.

Operational efficiency and cost structure

• Achieved significant cost reductions, including a headcount reduction of 600 in Germany and 450 at headquarters, with no further layoffs planned under current expectations.

• Structural efficiency program aims for €80 million in peak annual savings, €55 million from headcount reduction, and ongoing productivity improvements to offset wage increases.

• Streamlined German production footprint, with ongoing evaluation of site consolidation and third-party utilization of foundry and assembly capabilities.

• Global production and sourcing network enables local-for-local manufacturing, especially leveraging lower-cost Chinese facilities.

• New governance framework increases transparency by segmenting product areas, supporting better decision-making for M&A and joint ventures.

Growth initiatives and new business developments

• Announced re-entry into the very large format (VLF) market with the Cartonmaster CX145, based on MAN Roland 900, integrated into proprietary workflow and service network, targeting double-digit million euro sales.

• Exploring entry into flexible packaging and corrugated board markets through organic development and potential partnerships or acquisitions.

• Technology segment repositioned as an incubator for growth outside core print/packaging, focusing on system solutions for industrial applications, including e-mobility, automation, and military sectors.

• Amplified subsidiary transformed into a B2B service and infrastructure provider for e-mobility, winning major accounts like SAP and targeting recurring revenue models.

• Service business expansion into new industries, leveraging global technician network and logistics for 24-hour parts delivery, aiming to capture a share of the projected €1 billion European e-service market by 2030.