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www
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studio
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2011
N.J. this company is the biggest nationwide distributor of
graphic arts products in the u.s., and the acquisition doubled
the size of Agfa’s Graphics business here. it allowed us to
become more prominently present in a market like packaging
with a comprehensive product portfolio. we have our own
products and that of a wide range of world-class manufacturers
that we are now partnered with, including HP, epson, 3m, and
duPont. it was also a unique opportunity to further grow in
industrial inkjet, where we were able to expand significantly the
relevant market and product offerings to our customers.
Looking back, how did Agfa’s vision for “going digital”
differ from the competition?
some of our competitors extended their imaging technology
into consumer electronics and encountered severe competition
from existing manufacturers and the brutal profit margins of a
business where prices seem to be in a perpetual freefall. You
have to pick your battles and niches and understand the
competitive landscape. Agfa realized early on, for example,
that it should not try competing in desktop printing as that
market was taken already and one can only compete by
slashing ink prices.
the other problem competitors encountered stemmed
from predicting the descent curve for traditional film products.
some companies placed their hopes on the boom in emerging
markets. But sales of traditional products for the world as a
whole were declining and in the emerging markets, the old
technology was often skipped entirely.
What is the outlook for your company?
Agfa Graphics has positioned itself for future growth in the
graphic communications industry. through savvy investments
and acquisitions, our company holds a unique leadership
position among its competition. in certain market segments,
competition comes obviously from electronic alternatives to
print such as the internet, mobile communication devices,
and e-readers; and printed media will unavoidably decline in
those segments. However, print will continue to occupy a
leading position in the graphic communications industry and
in segments like packaging and the sign market, print is still
growing. Graphic communications customers increasingly
expect fast turnarounds, short runs, and personalization. such
options are available with digital printing and Agfa Graphics
provides the broadest and most innovative product portfolio
that meets the customers’ needs.
After the acquisition of Pitman last year, Agfa Graphics has an
unmatched national distribution network and is able to supply
products to print service providers within 24 hours so they can
meet the demands of their customers.
v
The Role of a CFO
A strong financial foundation is of critical importance for
either a growing or a struggling business. every successful
company needs an active CFo. during an economic crisis,
with positive cash flow more difficult to obtain, a CFo
needs to put himself even more in the center of the
business strategy.
in today’s world, most Ceos expect that their CFo gets
beyond offering input, but instead gets involved in every
key decision, is proactive in challenging the business
strategy; and, importantly, must display a forward- and
outward-looking attitude instead of offering backward-
and inward-looking views, like many finance professionals
are used to doing.
while strategy is important, a core responsibility of
the CFo remains ensuring that the financial version of the
truth is heard and understood. this often results in having
to find ways to trim expectations in a manner that does
not bring the business to a halt, and not being the one
who simply says no all the time.
—Gunther Mertens
CFO at a Glance:
How do you hope your colleagues describe you?
Gunther Mertens
: Principled, pragmatic, collaborative.
What are you reading right now?
Aftershock: The Next Economy and America’s Future
, by Robert B.
Reich.
What are your hobbies?
traveling and getting to know new places.
If you weren’t a successful CFO, what type of career
might you have pursued?
Private equity, mergers, and acquisitions.
What’s the worst and best part of being a CFO?
the best part of being a CFo is that you have the best posi-
tioned function within a company to understand how the
business is really doing. in addition to understanding the
numbers, you are able to help with the strategic decisions.
i see not really a bad side to being a CFo other than
perhaps when things go bad the CFo is often blamed.
What are your plans for retirement?
i have not really given it a lot of thought yet. As retirement
—probably it will be another 25 years before i get there.
if pressed for an answer, i would say i want to work
hard until retirement and retire to a vacation home in
the Caribbean.
“
To fund the innovation and
acquisitions, it was important
to manage the technology cycles
as well.”