Financial year 2010/11: Heidelberg Publishes Preliminary Figures for the Second Quarter

• Positive development in operational business continues in second quarter of financial year 2010/11
• Considerably improved preliminary operating result between  EUR -5 million and EUR -10 million expected
• Preliminary sales at EUR 633 million and preliminary incoming orders at EUR 651 both up on previous year
• Management Board confirms forecast for current financial year

 The positive development in operational business at Heidelberger Druckmaschinen AG (Heidelberg) continued in the second quarter of financial year 2010/2011 (July 1 to September 30, 2010). Based on preliminary calculations, incoming orders were up on the previous year's level (EUR 534 million) at EUR 651 million, whereof some EUR 39 million is accounted for by exchange rate movements. Although this figure is lower than the previous quarter, which was boosted by special items such as exchange rate effects and trade shows, incoming orders are in line with the company's own planning. Preliminary sales climbed significantly against the previous year (EUR 499 million) to EUR 633 million, including exchange rate effects of some EUR 38 million, and were thus also up on the previous quarter. Thanks to the successful restructuring measures, the preliminary operating result excluding special items is within the range of EUR -5 million and EUR -10 million - and thus has clearly improved compared to the previous year's quarter (EUR -65 million) and the previous quarter (EUR -35 million).

 "The preliminary figures show that our organizational and strategic realignment is taking effect. Due to our improved structures we furthermore profit from the cyclical upturn as well as from the recovery in the industrialized countries. Thus, we confirm the forecast for financial year 2010/11," stated Heidelberg CEO Bernhard Schreier. "In the medium term, expected growth within the strategically important areas packaging printing, services, and consumables as well as continuing favorable developments in the emerging countries will additionally support Heidelberg's success."

Earnings from special items totaled EUR 7 million in the second quarter. The preliminary financial result in the second quarter is around EUR -50 million (previous year: EUR -27 million). Financing costs and non-recurring expenditures for the repayment of loans from the proceeds of the capital increase were among the items having a negative impact on this result.

Despite the outflow of funds associated with restructuring measures, Heidelberg achieved a slightly positive free cash flow in the second quarter which was in line with expectations.

For the current financial year 2010/2011, Heidelberg continues to expect a moderate growth in sales. The operating result will benefit from increasing profit contributions and the savings achieved so far. Assuming stable economic developments, Heidelberg is still striving for a break-even operating result in the current financial year. The forecast of economic developments reflected in the company's financial year planning takes into account the respective product mix prevalent in the single markets. As expected, however, financing costs and non-recurring expenditures for the repayment of loans from the proceeds of the capital increase will burden the financial result. The repayment of financial liabilities made possible by the successful capital increase will improve this situation in the remaining months of the current financial year. Heidelberg continues to expect a significant net loss for the current financial year.

 "With the successful capital increase we were able to considerably reduce our financial debt, and to strengthen the financial stability of the Heidelberg Group in the long term. Additionally, due to the enhanced financing structure we have implemented a solid basis for sustainable growth enabling us to break even quickest possible," said Dirk Kaliebe, CFO of the company.

The final figures for the second quarter of financial year 2010/2011 are due to be published on November 10, 2010.


For further information:
Heidelberger Druckmaschinen AG
Investor Relations
Andreas Trösch
Tel: +49 (0)6221- 92 6020
Fax: +49 (0)6221- 92 5189
E-mail: Andreas.Troesch@Heidelberg.com


Heidelberger Druckmaschinen

A technology provider and partner in the print media industry

Heidelberger Druckmaschinen AG (Heidelberg) is with its sheetfed offset printing machines one of the leading solution providers for the print media industry. All over the world, the name Heidelberg is synonymous with state-of-the art technology, top quality, and closeness to the customer. The core business of this technology group covers the whole value-added and process chain for the 35 x 50 cm (13.78 x 19.69 in) to 121 x 162 cm (47.64 x 63.78 in) format classes in the sheetfed offset sector.

Heidelberg develops and produces precision printing presses, platesetters, postpress equipment, and software for integrating all the printshop processes. Environmental protection has an enduring importance in this regard. Solutions for the development, production, and utilization of presses help to conserve resources, reduce emissions, and cut wastage. The Heidelberg portfolio also provides general and consulting services ranging from spare parts and consumables to the sale of remarketed equipment, and training at the Print Media Academy.

Based in Heidelberg, Germany, with development and production sites in seven countries and around 250 sales offices across the globe, the company supports around 200,000 customers worldwide. All Heidelberg presses destined for the world market are manufactured at the Wiesloch-Walldorf site in line with strict quality standards. Standardized presses in all standard format classes and folding machines for the Chinese market are produced by Heidelberg in Qingpu near Shanghai.

Heidelberg presses worldwide produce high-quality print products such as business cards, brochures, posters, and folding cartons.

In financial year 2009/2010, Heidelberg recorded sales of EUR 2.306 billion. As at March 31, 2010, the Heidelberg Group had a workforce of 16,496 worldwide, including 700 trainees.


Important Note
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.