Bernhard Schreier, Heidelberg Bernhard Schreier began his career with Heidelberger Druckmaschinen AG at the Wiesloch factory in Germany more than 20 years ago. Since joining Heidelberg, Bernhard has provided leadership in various positions including: assistant to assembly management; head of midsize offset press assembly department; general manager in charge of Speedmaster and S-Offset; project manager for construction of the new central assembly plant; head of central assembly; head of production at Montataire, France; acting member of the Management Board; and Chairman of the Management Board of Linotype-Hell AG. Following the merger of Linotype-Hell AG into Heidelberger Druckmaschinen AG, Schreier became a full member of the Management Board of Heidelberger Druckmaschinen AG and manager of the prepress business unit. He became Chief Operating Officer, Heidelberg Digital, Rochester (New York, USA) in October 1999. Bernhard received his mechanical engineering studies at the Berufsakademie Mannheim (Mannheim Vocational Institute) with on-the-job training at Heidelberger Druckmaschinen AG, finishing with the degree of Diplom-Ingenieur (Berufsakademie). Mr. Schreier, tell us why Heidelberg has shown such strong growth over the last two years. Heidelberg's growth is the result of a strategy developed decades ago. This strategy includes building close customer relationships and providing integrated solutions to all of our customers. Heidelberg provides complete and integrated solutions to our customers. We put the customer first by individually tailoring our solutions packages to the needs of our customers. We have the ability to do this thanks largely in part to our diversified our product offering. Industry surveys show that we enjoy a high level of confidence from our customers and that customers see this as a basis for continued business with us in the future. Heidelberg is committed to taking each customer or potential customer very seriously and treating each and every one of them as individuals. Can Heidelberg continue to gain market share at the same pace in the coming year? We cannot predict the future, however we can continue doing the right things that has led to our growth. In order to ensure continued expansion after our considerable growth over the last few years, we will in the coming months and years be concentrating on two strategies. First, we will continue to support our traditional business, offset printing, to ensure that Heidelberg's offset customers can continue to maintain a large competitive advantage over market competitors. Second, Heidelberg will prepare itself for future growth by expanding into new printing processes and exploiting new market opportunities. The first and highest priority in new markets is Digital Printing. This technology for variable output will change the future in print and Heidelberg will be part of this future. The US market has been in an economic slow period. Heidelberg has said that the last quarter was affected by the slow down. What do you anticipate in terms of growth in the US for 2001? While we cannot predict the future of the market, we can continue to implement the stratigies that have made us successful to date. The US is a leading market for Heidelberg. Our customers here tend to be at the cutting edge of technology for the printing and publishing industry. This means that the US market is not different but an advanced market. Here is the US; many products are introduced to our customers before the rest of the world. Aside from the advanced technology usage pattern in the US, the Heidelberg customers worldwide are successful, confident and demanding of Heidelberg as partner. Many high tech companies in the US and abroad created Internet based print options in 1999 and 2000. Many of these "web based" companies, also known as e-publishers, have experienced slow adoption rates. Was this market ever a focus for Heidelberg? This market remains a focus for Heidelberg. The web and e-commerce are important to Heidelberg because they are important to our customers. By and large our customers use the Internet to do some form of business. Likewise, Heidelberg offers spare parts and other pieces of equipment online. We believe the Web will only become more important to our customers and should be treated very seriously. E-commerce is a double-edged sword to printers-if it is done in a way to nurture and improve relationship with customers it is good. If e-commerce initiatives, particularly auctioning print jobs, destroy our customers' customer then we all lose. Heidelberg plans include addressing the e-commerce situation with solutions that help printers improve their business. How has the ended relationship with CREO affected Heidelberg? Our link to our prepress customers in the United States is stronger than ever. Our relationship with the new Creo/Scitex changed because we are going in different directions with our customers and product line. Heidelberg is now providing more options like the new Topsetter to more customers with a better selection of choices. When sales of products like the Digimaster really soar, is your strategy for growth to examine successful products and extend their capabilities or compatible offerings? Yes. Heidelberg places great importance on listening to our customers long after the sale of a product is made. The natural progression is for our product's capabilities to improve through ongoing research and development and from the critical feedback we receive from our customers. In short, our strategy is to always listen to our customers and to apply their needs to all of our products and services. It is the only way to meet and exceed customer expectations. As many know, Xerox and almost every other equipment maker has suffered tremendous challenges in the US and abroad. A variety of issues have contributed to their struggles. Has Heidelberg learned anything from these companies? Our strength in the marketplace is built around our open dialogue with customers. As long as we continue to listen to our customers and meet their changing needs Heidelberg will be well positioned in the future. As for Xerox and other equipment makers, they have their own marketing strategy. Heidelberg will never publicly provoke a company. We offer solutions and they speak for themselves. In terms of customer service, what plans do you have to strengthen training and continuing education for your clients and employees? At the very heart of our growth strategy is a comprehensive customer education and support program. This is one reason why Heidelberg has invested so heavily in our Print Media Academy. The goals of the Print Media Academy are to provide training and consulting to our customers to make them more successful with Heidelberg products in their market. Our training and consulting program is making a strong statement as we are now sponsoring product independent training and education opportunities to the industry at large like our collaboration with Kennesaw State University in Atlanta for a MBA in print management. We believe for good reason that Heidelberg's strategy conveys confidence and security to its customers by providing them with the best solutions for their needs and requirements. In our role as solution provider, Heidelberg creates open interfaces and global solutions and offerings carefully designed to customer's specific needs. As a global organization, our commitment to innovation, technological leadership and quality software, hardware, equipment and systems provide an ideal platform for reinforcing Heidelberg's market position and the competitive edge it delivers to customers. We will continue our strong support for existing market segments as we move into other areas.