technotrans presents Group strategy 2025

revenue from EUR 265 to 285 million and transition into one brand

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technotrans
Michael Finger, spokesman of the board of management of technotrans SE

technotrans SE presented its strategy 2025 and guidances for the 2021 and 2025 financial years in a virtual investor event. Under the new claim’ power to transform,’ the Group has developed a roadmap that has three main objectives – to boost Group-wide profitability, to achieve revenue growth by focusing on four selected key markets, and to be present on the markets under one single brand ‘technotrans’. The goal is to achieve revenue between EUR 265 and 285 million by 2025 through organic growth, with an EBIT margin between 9 to 12 percent. The Group already begins merging and renaming selected Group companies in the upcoming year in order to strengthen the economic and technological power of the Group. In the future, the core business of the company will be thermal management, that is, the energetic optimization and control of the temperature balance of complex applications.

“If there is a challenge or customer-specific enquiry in the area of thermal management, we develop and manufacture the better solution – that is our vision,” says Michael Finger, spokesman of the board of management of technotrans SE. “As part of the strategy 2025, we are removing the boundaries between the Group companies and transform technotrans into a larger, stronger entity. This will create synergy effects and efficiency gains.” The company intends to implement its strategy in two phases. While the focus in the coming years 2021 and 2022 will be on stability and profitability, the period from 2023 to 2025 will be about profitable growth through targeted investments.

The specific measures include the creation of one single technotrans brand in the coming year. The Group will no longer be present in the form of several individual entities but as one large company with a broad range of services in the field of thermal management. This does not apply to gds GmbH, which will remain part of the Group with its own brand as a full-service provider of all aspects of technical documentation. technotrans will already begin merging selected companies from 2021. This involves merging klh Kältetechnik GmbH with technotrans SE and Reisner Cooling Solutions GmbH with gwk Gesellschaft Wärme Kältetechnik mbH. The company locations will be retained.

Customer-oriented process optimization

In the course of developing its strategy, technotrans conducted extensive surveys of customers, users, and investors in order to obtain a precise picture of their requirements and needs. Based on these feedbacks, the company will streamline its organizational structures in the areas of sales, service, production, and purchasing in order to shorten response times and optimize processes. The declared goal is to generate sales of between EUR 265 and 285 million by 2025 through organic growth with an EBIT margin of 9 to 12 percent. In the case of suitable acquisitions, the sales target increases depending on the size of the purchase. The Group is also introducing a return on capital employed (ROCE) target, which is expected to be over 15 percent by 2025. The forecast for the 2021 financial year envisages revenue in a range of EUR 195 to 205 million with an EBIT margin of 4.5 to 5.5
percent.

technotrans remains active in its existing areas of business, with a clear focus on four key markets – including three growth markets. These are plastics (plastics manufacturing and processing), energy management (including eMobility solutions for rail and road applications as well as thermal management solutions for data centers), healthcare & analytics, and print. technotrans intends to maintain its market leadership in the still significant base business print and raise existing potential for innovation within the industry by focusing on this area.

More sustainability and new corporate design

The aspect of sustainability is gaining in importance and is being consistently expanded. This applies not only to the continuous development of energy-efficient technologies but also to the Group itself – By 2025, technotrans aims to obtain 100 percent of its electricity from renewable resources and to use only purely recyclable packaging material. In connection with the changes, technotrans will present itself visually in a new look at the start of 2021: In addition to the introduction of a new corporate design, including the new logo, the Group is also carrying out a comprehensive website relaunch, which will go live in January.

“This strategy and its actions join the successful diversification that took place from 2009 to 2018. The task now is to strengthen the cohesion and the economic and technological clout of the entire Group,” says Michael Finger. The company’s forecasts remain subject to the proviso that no significant Corona-related restrictions are imposed by the authorities in the coming year. technotrans is nevertheless optimistic about the next five years. “We have presented a realistic and binding growth strategy that is linked to corresponding key performance indicators. Together with the entire technotrans Group, all its employees and their skills and experience, we will successfully shape the company’s future,” emphasizes Michael Finger.

2023 promises an interesting ride for print in India

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. While the print and packaging industries have been resilient in the past 33 months since the pandemic lockdown of 25 March 2020, the commercial printing and newspaper industries have yet to recover their pre-Covid trajectory.

The fragmented commercial printing industry faces substantial challenges as does the newspaper industry. While digital short-run printing and the signage industry seem to be recovering a bit faster, ultimately their growth will also be moderated by the progress of the overall economy. On the other hand book printing exports are doing well but they too face several supply-chain and logistics challenges.

The price of publication papers including newsprint has been high in the past year while availability is diminished by several mills shutting down their publication paper and newsprint machines in the past four years. Indian paper mills are also exporting many types of paper and have raised prices for Indian printers. To some extent, this has helped in the recovery of the digital printing industry with its on-demand short-run and low-wastage paradigm.

Ultimately digital print and other digital channels will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future. For instance, there is no alternative to a rise in textbook consumption but this segment will only reach normality in the next financial year beginning on 1 April 2023.

Thus while the new normal is a moving target and many commercial printers look to diversification, we believe that our target audiences may shift and change. Like them, we will also have to adapt with agility to keep up with their business and technical information needs.

Our 2023 media kit is ready, and it is the right time to take stock and reconnect with your potential markets and customers. Print is the glue for the growth of liberal education, new industry, and an emerging economy. We seek your participation in what promises to be an interesting ride.

– Naresh Khanna

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