Key Data in the Heidelberg Preliminary Financial Statement 2003/2004 Better than Expected

• Order intake in Q4 around one billion Euro
• Sales volume in FY 2003/2004 at 3.661 billion Euro
• Operating result at 20 million Euro better than expected
• Free cash flow much better than forecasted

Substantial key data of Heidelberger Druckmaschinen AG's (Heidelberg) preliminary year-end results for FY 2003/04 (April 1 through March 31) are higher than the company expected. Heidelberg's preliminary sales volume reached 3,661 million Euro, which is roughly 11 percent below previous year's sales volume (4,130 million Euro). Adjusted to eliminate currency effects, the decrease in sales amounted to 6 percent. At 20 million Euro, the preliminary operating result (previous year 102 million Euro) exceeded the forecasted break-even. Cost-cutting and efficiency improvement measures have thus shown their effects earlier than planned. Despite high one-time disbursements for efficiency improvement and restructuring, the free cash flow was positive and therefore much better than forecasted (-100 million Euro). Due to high one-time costs, the preliminary result after taxes levelled out at -690 million Euro, which was in the expected range (previous year -138 million Euro).

Altogether, the reporting year by the Heidelberg Group was burdened by restructuring costs and expenses connected to discontinued business activities, amounting to 565 million Euro. The discontinued business activities concerned are Digital and Web Systems. This affected the individual Heidelberg AG financial statement in form of depreciations on financial assets and financial receivables, amounting to 1.2 billion Euro, which are already accrued in the group closing.

Heidelberg's fourth quarter order intake totalled at 1.0 billion Euro - in light of the coming trade fair drupa (May 2004) and the resulting low-key order intake, this can be seen as a satisfactory level.

Further details will be disclosed with the preliminary figures on May 3, 2004. The entire year-end financial statement for the year closing on March 31, 2004, as well as the transition to Heidelberg's new segment reporting structure, will be introduced at the year-end press and analysts' conference on June 8, 2004.

For further information:
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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