Future of Print Media Industry Roadmap to drupa 2016 · PDF file · 2015-12-01Future of Print Media Industry – Roadmap to drupa 2016 ... 1 Publishing & Others: Newspaper, Books,

Harald Weimer | Wiesloch-Walldorf, December 1, 2015

Future of Print Media Industry – Roadmap to drupa 2016 Year-End Press Conference

© Heidelberger Druckmaschinen AG

Despite further penetration of electronic media worldwide print production volume (PPV) will grow moderately

402 403 397 396 406 416 431 441 438

407 415 414 410 407 407 420

-8%

-6%

-4%

-2%

0%

2%

4%

6%

0

100

200

300

400

500

2000 2002 2004 2006 2008 2010 2012 2014 2020Re

al

Pr

int

Pr

od

uc

tio

n V

olu

me

in

b

n. €

*

Source: Heidelberg estimate – June 2015, industry statistics, PIRA, Jakkoo Pöyry, Primir (GAMIS), Global Insight Digital: Only Digital Production Devices are taken into consideration ----- *Base Year 2009

Annual Growth (2014-2020) Total: 0.5%

Global PPV, in Billion €

Actual 2000-2014; Forecast 2014-2020

| Year-End Press Conference 2


Source: Heidelberg estimate – June 2015, industry statistics, PIRA, Jakkoo Pöyry, Primir (GAMIS), Global Insight Digital: Only Digital Production Devices are taken into consideration ----- *Base Year 2009

174 171 169

116 124 141

117 114 110

2020

420

2016

410

2014

407

-1,1% p.a.

-1,0% p.a.

+3,3% p.a.

+3,3% p.a.

-0,6% p.a.

-0,4% p.a.

Development of global print production volume, by segment (PPV in €bn)

Packaging → Folding Carton

→ Labels

→ Flexibles

Commercial → Catalogs

→ Advertising

→ Financial/Legal

→ Directories

He

ide

lbe

rg

s

Ta

rg

et

se

cti

on

Commercial Publishing & others Packaging

HDM serves both packaging & commercial print markets. Leverage growth in packaging, building on solid foundation

in commercial.



Print production volume (PPV) by region [bn. €]

Worldwide PPV will grow moderately. Packaging remains a strong driver.

1 Publishing & Others: Newspaper, Books, Magazines, Specialty 2 Middle East / Africa: Packaging PPV will increase from 3 to 4 bn. EUR, Commercial PPV from 3 to 4 bn. EUR, Pubishing & Others PPV will remain by 3 bn. EUR Source: Heidelberg Estimate – June 2015, Industry Statistics, PIRA, RISI, PRIMIR, Global Insight

24 25 26

44 43 39

23 22 20

92 89 85

2014 2016 2020

32 34 36

46 44 40

28 27 23

107 105 99

2014 2016 2020

7 8 9 10 10 11 5 5 4

22 23 24

2014 2016 2020

22 25 32

18 20 23 18

20 23 58

64

79

2014 2016 2020

22 24 27

40 40 40

30 29 28

93 93 94

2014 2016 2020

9 10 11

2014 2016 2020

6 6 7 11 11 11 9 9 9

26 26 27

2014 2016 2020

-1% p.a. -1% p.a.

South America

Eastern Europe

Middle East/ Africa2

Asia/Pacific (w/o China/HK)

China/HK

North America

Packaging PPV

Commercial PPV

Publishing &

Others PPV1

+1% p.a.

+3% p.a.

Western Europe

+1% p.a. +5% p.a.

+0,3% p.a.



Prognose

1 Gallus /Heidelberg relevant part only (Folding Cartons & Labels) 2 Gravure, Screen, Letterpress and not Gallus/ Heidelberg relevant Flexo Source: Heidelberg estimate– June 2015, Industry statistics, PIRA, Jakkoo Pöyry, Primir (GAMIS), Global Insight Digital: Only Digital Production Devices are taken into consideration ----- *Base Year 2009

300

200

500

400

0

100

2009

407

441

407

2014 2015 2016 2020 2000

408 410 402 420

2007

Pr

int

Pr

od

uc

tio

n V

olu

me

(b

n. €

*)

Worldwide PPV Digital technology important for growth

KJ

Development of Printing Process Shares, by Print Production Volume (bn. €*)

Actual 2000-2014; Forecast 2015-2020

Web Offset:

Digital:

Other2:

Annual Growth (2014-2020) Total: 0.5%

Flexo1:

Sheetfed Offset:

Heidelberg‘s

Target Area

Annual Growth (2014-2020): 2 %

- 3 %

0 %

8 %

3 %

0 %



Our customers are changing, too…

From a small craftsman…. … to an industrial enterprise

6 | Year-End Press Conference


What are the ongoing trends in the global printing market?



Individualization or hybridization of products

(linking of production and services)

Providing additional services

Integration of customers and partners into

business processes and value chain

Embedded systems as well as (partly)

autonomous machines

Increasing interconnectivity

Hallmarks of our industry?



Welcome to a digitized world

Prof. Dr. Walter Brenner

The Chair of Prof. Dr. Walter Brenner focuses on the following research and teaching subjects:

→ information management

→ industrial services and enterprise systems

→ design thinking

→ digital consumer business


https://de.wikipedia.org/wiki/Datei:WBR_Profil.jpg


Individualization or hybridization of products

(linking of production and services)

Providing additional services

Integration of customers and partners into

business processes and value chain

Embedded systems as well as (partly)

autonomous machines

Increasing interconnectivity

Hallmarks of our industry!

= Digitized World



Chances and challenges. Relevance for Heidelberg and for our customers.

The digitized trend transforms entire

industries and business models

Within the next five years 80% of companies will

have digitized their value chains

Digitization will lead to higher production and

resource efficiency

An important key is the integrated analysis and the utilization of available data

Digitization of product and service portfolios is the key

factor for sustainable success

Digitization enables new digital business models

The horizontal process integration is the best way to fulfill customer

requirements

….

Digitized World




Change as logical consequence



Readiness of Heidelberg equipment portfolio for needs in the digitized age?

Equipment

Heidelberg



Until 1995, communication in print production was entirely walk, talk and paper

2016: Full integration with Prinect

Development of the print media industry

PREPRESS POSTPRESS PRESS

WEB & MEDIA PRESS

Offset & Digital

MIS

Offset & Digital

POSTPRESS

Offset & Digital

PREPRESS

Offset & Digital

Prinect



Digital: based on strong partners, integrated with Prinect

Jetmaster Dimension

Gallus DCS 340

Commercial Value Segment Peak Performance Segment

Digital Label Peak Performance 4D Object Decoration

Linoprint Digital

Prinect



Integrated

Production data analysis

Delivering real time data

Connecting for Productivity Benchmarking

Connecting for Remote Monitoring

An integrated Speedmaster is fully digitized



Strategic partnerships: the new postpress business model

Buildup a strategic partnership in the area of postpress

Commercial

Packaging

Folding Cutting Partnering

Partnering Die Cutter Folder Gluer

Sales Service

Partnership with Masterworks:

Revised product portfolio to address demands in the rapid growing packaging market

Heidelberg and Masterworks contribute their core competences to jointly address the customer demands and form the best available supplier

R&D Production

Sales Service R&D Production



Heidelberg: partner for a digitized world

WEB

PRESS

Offset & Digital

MIS

Offset & Digital

POSTPRESS

Offset & Digital

PREPRESS

Offset & Digital

Smart Print Shop Ready for Industry 4.0



Heidelberg's service is a central part of the integration to increase availability and productivity

Technical

Services Performance

Services


21 © Heidelberger Druckmaschinen AG |

Heidelberg Systemservice: a comprehensive portfolio for greater performance.

On-Demand

One-Time Service

Systemservice 36plus

For new equipment

Heidelberg Partner Program

For installed equipment:

Performance Packages

For increased productivity

Performance Services

Technical Services

Maintenance

Repair

Remote Support

Original Parts

Consulting Upgrades

Installation Cleaning

Color Management Training

Service Agreements

Remote

Monitoring

NEW

Performance

Plus

NEW

Relocation Overhauling

| Year-End Press Conference © Heidelberger Druckmaschinen AG

Remote Services from Heidelberg. Pioneering, patented, award-winning.

2004

A decade of success in online support and service since 2004 –

marking a technological milestone in the print media industry:

Performance

Program Continuous

Productivity increase

Service Management Preis 1. Platz 2008

Service Management Preis 2. Platz 2015

Netprofiler Calibration

of Prinect color

measuring systems Remote Diagnosis Instant remote

troubleshooting and

application advice

eCall Remote emergency

service

Performance

Benchmarking Online benchmarking

with other machines

Software

Distribution Automatic distribution

of update packages

Remote Monitoring Continuous technical

monitoring of machine

status

22 | Year-End Press Conference © Heidelberger Druckmaschinen AG


Target:

Requirements:

Increase machine availability using Remote Monitoring.

Avoid unscheduled downtime

Reduce planned downtimes by optimized preparation of

service operation

right technician

right part

right time

right benefit/cost

Continuous supervision of machine condition

E.g.: XL106-6L: 160 control components with 3000 different

sensors (31 Mio. data strings / week / machine )

Derivation of right action at the right point of time

Machine



Heidelberg consumables: easy access to all application- enabling materials and know-how.

CtP &

Consumables



Products and performances

Consumables

Comprehensive

portfolio

Know-How / Support

Stable

production

Consumables Business

Postpress Consumables

E-Commerce

Press Consumables

Professional Consulting

Prepress Consumables

Tested Quality

Heidelberg consumables: verified by experts –

for stabile production at the highest level – easy to access.



Heidelberg consumables: easy access to consumables and printing expertise to achieve performance in application.

Comprehensive portfolio

Plates

Inks & coatings

Blankets

Rollers

Chemicals

Global presence Hub & call

center Logistics

service provider

Online shop

Expertise for application, technology, color mgt. and consultancy

Saphira =

Reliability

Performance

Peace of mind

Recommended standard packages Performance kits



New auto pallet loader increases level of automation in plate setting.

Suprasetter Automation

Auto Pallet Loader (APL) → Simple & efficient plate bulk loader system

→ Continuous unattended operation

→ Automatic slip sheet separation

→ Manual option for loading plates




Smart Services Ready for Industry 4.0

Technical

Services Performance

Services CtP &

Consumables



New and innovative ways of collaboration in the digitized age

29

E-Commerce

| Year-End Press Conference


Online shop: perfect customer touch point E-Commerce



Higher productivity of the entire system with Performance Services

Processes:

Human:

Implementation

areas:

Optimizing the output

Reduction of make readies

Reduction if idle times

Optimizing the entire Workflows/throughput

Avoiding operator errors

Application security

Leadership

Tracking

Process

Knowledge- and

Asset management

Continuous data collection

Identify weaknesses

Improvement measures

Execution

Control

Machine

Human

Process

Performance

Services



Enjoying benefits of digitized age today: Productivity Benchmark

| Title of presentation ("Insert > Header and Footer") 32

Data analytics provide answers:

• Real-time performance compared to others

• Identify best practices

• Which area to focus on

Customer benefits:

• Provides knowledge and eliminates guesswork

• Set priority to improvement opportunities

• Creates a sense of competitiveness and a real

desire to improve

Productivity

Benchmark

© Heidelberger Druckmaschinen AG | Year-End Press Conference

Smart Collaboration

Ready for Industry 4.0


E-Commerce Productivity

Benchmark

Performance

Services

33


Utilizing remote connectivity towards our customer, the corresponding data pool and service network = Foundation for digitized print media industry

→ Integrated systems in

prepress, press and postpress

for offset and digital print

production

→ Prinect integrates process in

the print shop as well as the

print shop towards print

buyer

→ New interaction with

customers in digitized age

→ Utilize e-commerce benefits

→ Access individual

performance data in real

time

→ Collaborate and benchmark

within Heidelberg

community

Smart Collaboration

Smart Services

Smart Print Shop

Heidelberg @ drupa Preferred supplier in the digitized world



Simply Smart

Time to concentrate on what matters!

Heidelberg @ drupa Preferred supplier in the digitized world

Smart Collaboration

Smart Services

Smart Print Shop



Heidelberg @ drupa Integrated equipment, services, consumables and strong

partners



Heidelberg @ drupa Integrated solutions with strong partners in hall 1



drupa is extended to Wiesloch-Walldorf. Full range of portfolio for commercial and packaging print.


Thank you. Time for questions.

Harald Weimer

Documents

Future of Print Media Industry Roadmap to drupa 2016 · PDF file · 2015-12-01Future of Print Media Industry – Roadmap to drupa 2016 ... 1 Publishing & Others: Newspaper, Books,