Heidelberg Achieves Sales of Around Five Billion Euro in Fiscal Year 2001/2002

The results recorded by Heidelberger Druckmaschinen AG (Heidelberg) for the 2001/2002 fiscal year ended March 31, 2002, were in line with expectations. Sales by the Heidelberg Group of a good five billion Euro were some five percent down on the record level of the previous year (5.3 billion Euro). The operating profit for the year was 356 million Euro (previous year: 506 million Euro) and the annual net profit 201 million Euro (previous year: 283 million Euro). "Despite the weakness in the global economy we have thus achieved a significant result and have succeeded in reinforcing our leading position in the industry", stated Bernhard Schreier, Heidelberg's Chief Executive Officer. "We are confident that our strategy as solution provider will see us well positioned to respond effectively to a coming upturn. We also remain committed to continued growth." 

Orders received for the 2001/2002 fiscal year fell just short of 4.6 billion Euro (previous year: 5.5 billion Euro), the situation having stabilized in the fourth quarter. "Orders of around 260 million Euro received at Ipex in Birmingham in April 2002 gave us a good start to the new fiscal year", explained Chief Financial Officer Dr. Herbert Meyer. "We believe that the downturn in orders has now flattened out." Nevertheless, he expected the world economy would not see any lasting recovery before the second half of 2002 and that the industry as a whole would not start feeling the benefit until then.

The profit per share for the year was 2.32 Euro. Heidelberg will propose a dividend of 1.40 Euro (previous year: 1.80 Euro) at the Annual Shareholder Meeting, thereby remaining true to its policy of basing dividends on company profits. At March 31, 2002, the Heidelberg Group had a workforce of some 25,400 worldwide.

Prospects for the future: Stronger growth planned than the industry average
The company is confident that its global approach will enable it to derive greater benefit from the economic recovery than its competitors. "We expect winning further market share in all sectors of our company", stated Bernhard Schreier in outlining the prospects for the current fiscal year.

Heidelberg expects increased sales and orders in the digital printing sector over the current fiscal year. In its core area of business, sheetfed offset, Heidelberg plans to win market share by leading the way in both technology and cost aspects. In web offset, the company is looking to strengthen its sales activities in Asia and Europe. Sales will be increased here through the installation of several rotary newspaper presses. New finishing products will be used to augment and develop this growth area. Acquisitions and cooperation agreements are also planned in this sector.

All in all, Bernhard Schreier anticipates that Heidelberg's sales and net profit for fiscal 2002/2003 will be on a par with the previous year's levels. This depends directly on the strength of the economic recovery from the middle of the year, he added. "Sales for the first half of the year will probably be below the level for the same period of the previous year, while the figure for the second half is likely to be higher than the previous year." Over the long term he believes that Heidelberg can profit very considerably from an economic revival and, if the positive predictions come true, will achieve an almost two-digit growth in sales over the following years. "We still aim to become a eight-billion-Euro company by 2007."

For further information, please contact:
Heidelberger Druckmaschinen AG
Investor Relations
Dirk Kaliebe
Tel.: +49 (0)6221 92 60 20
Fax: +49 (0)6221 92 60 61
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