Financial Year 2007/2008: Heidelberg Presents First-Quarter Figures

• Incoming orders around 934 million Euro
• Sales climb by three percent to 742 million Euro
• Operating result up to 26 million Euro
• Outlook for full financial year 2007/08 unchanged

Heidelberger Druckmaschinen AG (Heidelberg) increased its sales and earnings in the first quarter of financial year 2007/2008 compared with the previous year. At 742 million Euro, sales by the Heidelberg Group in the first three months (April 1 - June 30) were around three percent up on the previous year (719 million Euro). Incoming orders in the first quarter were 934 million Euro (previous year: 1.076 billion Euro). The decline compared with the same quarter of the previous year is attributable to the high volume of orders received at the Ipex trade show in April 2006. The order backlog at the end of the first quarter was 1.196 billion Euro (previous year: 1.346 billion Euro).

"The upward trend in the print media industry is continuing on the back of positive developments in the global economy," stated Bernhard Schreier, CEO of Heidelberger Druckmaschinen. "If we take due account of the effect of the Ipex trade show in Birmingham in the previous year, incoming orders attained a very good level in the first quarter of 934 million Euro."

The Heidelberg Group recorded an operating result of 26 million Euro in the period under review (previous year: 16 million Euro). The net profit in the first quarter was eight million Euro (previous year: five million Euro). 

"The operating result of the Heidelberg Group has once again improved slightly over the previous year," stated Heidelberg CFO Dirk Kaliebe, "and was able to more than compensate for the anticipated costs from the collective wage agreement."

As of June 30, 2007, the Heidelberg Group had a workforce of 19,239 worldwide (up 68 during the quarter).

Results in the Press and Postpress divisions
In the Press Division (offset printing), sales rose to 639 million Euro in the first three months (previous year: 620 million Euro). Incoming orders in the period under review amounted to 817 million Euro (previous year: 954 million Euro). The operating result in the first quarter was 21 million Euro (previous year: four million Euro); Prepress delivered positive results for the first time.
 
In the Postpress Division (finishing), quarterly sales were 95 million Euro (previous year: 89 million Euro). Incoming orders totaled 109 million Euro (previous year: 112 million Euro). The operating result in the period under review was minus four million Euro (previous year: break-even) due to exchange rate movements and to the product mix.

Sales in all regions in the first quarter were on a par with or exceeded the previous year´s level. In EMEA and Asia/Pacific, incoming orders in the period under review fell in comparison with the previous year due to the high volume of orders received at the Ipex trade show in April 2006.

Outlook for financial year 2007/08 unchanged
During the next three-year period, from 2007/2008 to 2009/2010, the company expects total sales to increase by 10-15 percent. In the current financial year 2007/2008, Heidelberg predicts moderate growth in the run-up to drupa 2008.

In financial year 2007/2008, Heidelberg is looking to increase its pure operating result by 10-15 percent - compared to the adjusted value for the previous year of 302 million Euro. This marks out a target operating result for 2007/2008 of 330-345 million Euro.
 
The positive effects of the German tax reform and internal optimization measures with regard to the tax rate will also play their part in further increasing the net profit. Overall, the Company expects an increase in the net profit - excluding one-time effects - of around four percent of sales in the previous year to about five percent in financial year 2007/2008.

The complete report for the first quarter of 2007/2008 is available online at www.heidelberg.com .

For further information visit the Internet Press Lounge at www.heidelberg.com .

Other dates:
Publication of the half-yearly results for financial year 2007/2008 is scheduled for November 6, 2007.
 
For further information, please contact:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-mail: thomas.fichtl@heidelberg.com

Important note
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.